SEC Info - Atlantic City Electric Co, et al. - ‘10-K’ for 12/31/09

SEC Info℠

Home

Help

Please Sign In

Atlantic City Electric Co, et al. – ‘10-K’ for 12/31/09 – ‘XML.R10’

On: Thursday, 2/25/10, at 6:04pm ET · As of: 2/26/10 · For: 12/31/09 · Accession #: 1193125-10-41024 · File #s: 1-01072, 1-01405, 1-03559, 1-31403

  As Of               Filer                 Filing    For·On·As Docs:Size             Issuer                      Filing Agent

 2/26/10  Atlantic City Electric Co         10-K       12/31/09   68:18M                                    Donnelley … Solutions/FA
          Delmarva Power & Light Co/DE
          Potomac Electric Power Co
          Pepco Holdings Inc

Annual Report — Form 10-K — Sect. 13 / 15(d) – SEA’34
Filing Table of Contents

Document/Exhibit                   Description                      Pages   Size 

 1: 10-K        Annual Report                                       HTML   3.77M 
 2: 10-K        Annual Report -- d10k1                               PDF   2.53M 
 3: EX-10.37    Material Contract                                   HTML     31K 
 4: EX-10.38    Material Contract                                   HTML     42K 
 5: EX-10.39    Material Contract                                   HTML     42K 
10: EX-21       Subsidiaries List                                   HTML     38K 
11: EX-23.1     Consent of Experts or Counsel                       HTML     20K 
12: EX-23.2     Consent of Experts or Counsel                       HTML     19K 
13: EX-23.3     Consent of Experts or Counsel                       HTML     19K 
14: EX-23.4     Consent of Experts or Counsel                       HTML     19K 
 6: EX-12.1     Statement re: Computation of Ratios                 HTML     44K 
 7: EX-12.2     Statement re: Computation of Ratios                 HTML     39K 
 8: EX-12.3     Statement re: Computation of Ratios                 HTML     39K 
 9: EX-12.4     Statement re: Computation of Ratios                 HTML     39K 
15: EX-31.1     Certification -- §302 - SOA'02                      HTML     26K 
16: EX-31.2     Certification -- §302 - SOA'02                      HTML     25K 
17: EX-31.3     Certification -- §302 - SOA'02                      HTML     26K 
18: EX-31.4     Certification -- §302 - SOA'02                      HTML     25K 
19: EX-31.5     Certification -- §302 - SOA'02                      HTML     26K 
20: EX-31.6     Certification -- §302 - SOA'02                      HTML     25K 
21: EX-31.7     Certification -- §302 - SOA'02                      HTML     26K 
22: EX-31.8     Certification -- §302 - SOA'02                      HTML     25K 
23: EX-32.1     Certification -- §906 - SOA'02                      HTML     21K 
24: EX-32.2     Certification -- §906 - SOA'02                      HTML     21K 
25: EX-32.3     Certification -- §906 - SOA'02                      HTML     21K 
26: EX-32.4     Certification -- §906 - SOA'02                      HTML     21K 
58: XML         IDEA XML File -- Definitions and References          XML    130K 
64: XML         IDEA XML File -- Filing Summary                      XML    111K 
62: XML.R1      Statement Of Income Alternative                      XML    873K 
63: XML.R2      Statement Of Other Comprehensive Income              XML    268K 
44: XML.R3      Statement Of Financial Position Classified           XML   1.64M 
49: XML.R4      Statement Of Financial Position Classified           XML    162K 
                (Parenthetical)                                                  
56: XML.R5      Statement Of Cash Flows Indirect                     XML   1.48M 
55: XML.R6      Statement Of Cash Flows Indirect (Parenthetical)     XML    104K 
67: XML.R7      Statement Of Shareholders Equity And Other           XML   1.42M 
                Comprehensive Income                                             
38: XML.R8      Statement Of Shareholders Equity And Other           XML     53K 
                Comprehensive Income (Parenthetical)                             
54: XML.R9      Organization                                         XML     82K 
36: XML.R10     Significant Accounting Policies                      XML    232K 
35: XML.R11     Newly Adopted Accounting Standards                   XML    112K 
43: XML.R12     Recently Issued Accounting Standards, Not Yet        XML     89K 
                Adopted                                                          
60: XML.R13     Segment Information                                  XML    174K 
45: XML.R14     Goodwill                                             XML     61K 
46: XML.R15     Regulatory Assets and Regulatory Liabilities         XML    165K 
52: XML.R16     Leasing Activities                                   XML    124K 
68: XML.R17     Property, Plant and Equipment                        XML    149K 
41: XML.R18     Pensions and Other Postretirement Benefits           XML    298K 
33: XML.R19     Debt                                                 XML    347K 
48: XML.R20     Income Taxes                                         XML    390K 
59: XML.R21     Preferred Stock                                      XML     46K 
39: XML.R22     Noncontrolling Interest                              XML     49K 
57: XML.R23     Stock-Based Compensation, Dividend Restrictions,     XML    120K 
                and Calculations of Earnings Per Share of Common                 
                Stock                                                            
47: XML.R24     Derivative Instruments and Hedging Activities        XML    318K 
66: XML.R25     Fair Value Disclosures                               XML    323K 
61: XML.R26     Commitments and Contingencies                        XML    197K 
50: XML.R27     Accumulated Other Comprehensive Loss                 XML     63K 
53: XML.R28     Related Party Transactions                           XML    111K 
34: XML.R29     Quarterly Financial Information (Unaudited)          XML    247K 
37: XML.R30     Schedule I Condensed Financial Information of        XML    152K 
                Parent Company                                                   
40: XML.R31     Schedule II Valuation and Qualifying Accounts        XML     80K 
42: XML.R32     Document Information                                 XML     37K 
51: XML.R33     Entity Information                                   XML    316K 
65: EXCEL       IDEA Workbook of Financial Reports (.xls)            XLS    432K 
27: EX-101.INS  XBRL Instance -- pom-20091231                        XML   3.43M 
29: EX-101.CAL  XBRL Calculations -- pom-20091231_cal                XML    216K 
30: EX-101.DEF  XBRL Definitions -- pom-20091231_def                 XML    424K 
31: EX-101.LAB  XBRL Labels -- pom-20091231_lab                      XML    453K 
32: EX-101.PRE  XBRL Presentations -- pom-20091231_pre               XML    589K 
28: EX-101.SCH  XBRL Schema -- pom-20091231                          XSD     86K

‘XML.R10’ — Significant Accounting Policies

This Financial Report is an XBRL XML File.

<?xml version="1.0" encoding="windows-1252"?>

<ReportName> SIGNIFICANT ACCOUNTING POLICIES </ReportName>

<LabelColumn> false </LabelColumn>

</Labels>

<hasScenarios> false </hasScenarios>

<IsDefaultForEntity> false </IsDefaultForEntity>

<Name/>

<IsFromEntityGroup> false </IsFromEntityGroup>

<ValueName> PEPCO HOLDINGS INC </ValueName>

<ValueType> dei_LegalEntityAxis </ValueType>

<Namespace> xbrldi </Namespace>

<Schema> http://xbrl.org/2006/xbrldi </Schema>

<Id> us-gaap_ParentCompanyMember </Id>

<dimensionId> dei_LegalEntityAxis </dimensionId>

<type> explicitMember </type>

</DimensionInfo>

</Segment>

</Segments>

<Units>

<Unit>

<UnitType> Standard </UnitType>

</StandardMeasure>

</Unit>

<Unit>

<UnitID> iso4217_USD_per_shares </UnitID>

<UnitType> Divide </UnitType>

</NumeratorMeasure>

<MeasureSchema> http://www.xbrl.org/2003/instance </MeasureSchema>

<MeasureValue> shares </MeasureValue>

</DenominatorMeasure>

</Unit>

<Unit>

<UnitID> shares </UnitID>

<UnitType> Standard </UnitType>

<MeasureSchema> http://www.xbrl.org/2003/instance </MeasureSchema>

<MeasureValue> shares </MeasureValue>

</StandardMeasure>

</Unit>

</Units>

</Column>

</Columns>

<Rows>

<Row>

<Label> PEPCO HOLDINGS INC </Label>

<ShortDefinition> No definition available. </ShortDefinition>

<IsReportTitle> false </IsReportTitle>

<IsSubReportEnd> false </IsSubReportEnd>

<IsCalendarTitle> false </IsCalendarTitle>

<IsTuple> false </IsTuple>

<IsAbstractGroupTitle> false </IsAbstractGroupTitle>

<IsBeginningBalance> false </IsBeginningBalance>

<IsEndingBalance> false </IsEndingBalance>

<IsEPS> false </IsEPS>

<Cells>

<Cell>

<ShowCurrencySymbol> false </ShowCurrencySymbol>

<IsNumeric> false </IsNumeric>

<hasSegments> false </hasSegments>

<hasScenarios> false </hasScenarios>

</Cell>

</Cells>

<ElementDefenition> No definition available. </ElementDefenition>

<ElementReferences> No authoritative reference available. </ElementReferences>

<IsTotalLabel> false </IsTotalLabel>

</Row>

<Row>

<Label> SIGNIFICANT ACCOUNTING POLICIES </Label>

<ElementName> us-gaap_SignificantAccountingPoliciesTextBlock </ElementName>

<PeriodType> duration </PeriodType>

<ElementDataType> string </ElementDataType>

<ShortDefinition> No definition available. </ShortDefinition>

<IsReportTitle> false </IsReportTitle>

<IsSegmentTitle> false </IsSegmentTitle>

<IsSubReportEnd> false </IsSubReportEnd>

<IsCalendarTitle> false </IsCalendarTitle>

<IsTuple> false </IsTuple>

<IsAbstractGroupTitle> false </IsAbstractGroupTitle>

<IsBeginningBalance> false </IsBeginningBalance>

<IsEndingBalance> false </IsEndingBalance>

<IsEPS> false </IsEPS>

<Cells>

<Cell>

<ShowCurrencySymbol> false </ShowCurrencySymbol>

<IsNumeric> false </IsNumeric>

<div> (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 a 20% to 50% voting interest and cannot exercise control over the operations and policies of the investment. Undivided interests in several jointly owned electric plants previously held by PHI, and certain transmission and other facilities currently held, are consolidated in proportion to PHI’s percentage interest in the facility. Change in Accounting Principle Historically PHI performed its goodwill impairment test on July 1 each year. After the completion of the July 1, 2009 goodwill impairment test, PHI adopted a new accounting policy whereby PHI’s annual impairment review of goodwill will be performed as of November 1 each year. Management believes that PHI’s new annual impairment testing date is preferable because it better aligns the timing of the test with management’s annual update of its long-term financial forecast. This change in accounting principle had no effect on PHI’s consolidated financial statements. For additional discussion on this matter see Note (6), “Goodwill.” Consolidation of Variable Interest Entities In accordance with the provisions of FASB guidance on variable interest entities (Accounting Standards Codification (ASC) 810), Pepco Holdings consolidates those variable interest entities with respect to which Pepco Holdings or a subsidiary is the primary beneficiary. The guidance addresses conditions under which an entity should be consolidated based upon variable interests rather than voting interests. Subsidiaries of Pepco Holdings have power purchase agreements (PPAs) with several entities to which the guidance applies. ACE and Pepco PPAs Pepco Holdings, through its ACE subsidiary, is a party to three PPAs with unaffiliated, non-utility generators (NUGs). Due to a variable element in the pricing structure of the NUGs, Pepco Holdings potentially assumes the variability in the operations of the plants related to the NUGs and, therefore, has a variable interest in the entities. Pepco Holdings continued, during 2009, to conduct exhaustive efforts to obtain information from these three entities, but was unable to obtain sufficient information to conduct the analysis required under FASB guidance to determine whether these three entities were variable interest entities or if ACE was the primary beneficiary. As a result, Pepco Holdings has applied the scope exemption from the guidance for enterprises that have conducted exhaustive efforts to obtain the necessary information, but have not been able to obtain such information. Net purchase activities with the NUGs for the years ended December 31, 2009, 2008, and 2007, were approximately $282 million, $349 million and $327 million, respectively, of which approximately $262 million, $305 million and $292 million, respectively, related to power purchases under the PPAs. Pepco Holdings does not have loss exposure under the NUGs because the costs are recoverable from ACE’s customers through regulated rates. During the third quarter of 2008, Pepco transferred to Sempra Energy Trading LLP (Sempra) an agreement with Panda-Brandywine, L.P. (Panda) under which Pepco was obligated to purchase from Panda 230 megawatts of capacity and energy annually through 2021 (Panda PPA). Net purchase activities under the Panda PPA for the years ended December 31, 2008 and 2007 were approximately $59 million and $85 million, respectively. DPL Wind Transactions PHI, through its DPL subsidiary, has entered into four wind PPAs in amounts up to a total of 350 megawatts. Three of the PPAs are with land-based facilities and one of the PPAs is with an offshore facility. When completed and operational, DPL is obligated to purchase energy and renewable energy credits (RECs) from the four wind facilities and capacity from one of the wind facilities. The RECs help DPL fulfill a portion of its requirements under the State of Delaware’s Renewable Energy Portfolio Standards Act, which requires that 20 percent of total load needed in Delaware be produced from renewable sources by 2019. The Delaware Public Service Commission (DPSC) has approved the four agreements, each of which sets forth the prices to be paid by DPL over the life of the contract, and has approved the recovery of DPL’s purchase costs through customer rates. One of the land-based facilities became operational and went into service in December 2009. DPL is obligated to purchase energy and RECs from this facility over 15 years in amounts generated and delivered not to exceed 50.25 megawatts at rates that are fixed. Payments under the other agreements are currently expected to start in 2010 for the other two land-based contracts and 2014 for the offshore contract, if the projects are ultimately completed and operational. The terms of the agreements, with facilities that are not yet operational, range between 20 and 25 years. When they become operational, DPL is obligated to purchase energy and RECs in amounts generated and delivered by the sellers at rates that are primarily fixed under these agreements. Recent disruptions in the capital and credit markets, as well as permitting delays, could result in setbacks in the construction schedules and the operational start dates of the wind facilities. If the wind facilities are not operational by specified dates, DPL has the right to terminate the PPAs. DPL concluded that consolidation is not required for any of these PPAs under FASB guidance on the consolidation of variable interest entities (ASC 810). DPL will need to reassess its accounting conclusions if there are material changes to the contractual arrangements or wind facilities. 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 goodwill and long-lived assets for impairment, fair value calculations for certain derivative instruments, the costs of providing pension and other postretirement benefits, evaluation of the probability of recovery of regulatory assets, and the recognition of income tax benefits as it relates to investments in finance leases held in trust associated with PHI’s portfolio of cross-border energy lease investments. 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 the loss is determined to be probable and is reasonably estimable. Changes in Accounting Estimates As further discussed in Note (8), “Leasing Activities,” Note (12), “Income Taxes,” and Note (17), “Commitments and Contingencies — PHI’s Cross-Border Energy Lease Investments,” PHI maintains a portfolio of cross-border energy lease investments. The book equity value of these cross-border energy lease investments and the pattern of recognizing the related cross-border energy lease income are based on the timing and amount of all cash flows related to the cross-border energy lease investments, including income tax-related cash flows. These investments are more commonly referred to as sale-in lease-out or SILO transactions. PHI currently derives tax benefits from these investments based on the extent to which rental income is exceeded by depreciation deductions on the purchase price of the assets and interest deductions on the non-recourse debt financing (obtained to fund a substantial portion of the purchase price of the assets). The Internal Revenue Service (IRS) has announced broadly its intention to disallow the tax benefits recognized by all taxpayers on these types of investments, and, more specifically, the IRS has disallowed interest and depreciation deductions claimed by PHI related to its investments on the 2001 through 2005 PHI federal income tax returns currently under audit and has sought to recharacterize the leases as loan transactions as to which PHI would be subject to original issue discount income. In the last several years, IRS challenges to certain cross-border energy lease investment transactions have been the subject of litigation. This litigation has resulted in several decisions in favor of the IRS which were factored into PHI’s decision to adjust the values of the cross-border energy lease investments at June 30, 2008. While PHI believes that its tax position with regard to its cross-border energy lease investments was appropriate based on applicable statutes, regulations and case law, after evaluating the court rulings available at the time, PHI at June 30, 2008 reassessed the sustainability of its tax position and revised its assumptions regarding the estimated timing of the tax benefits from its cross-border energy lease investments. Based on this reassessment, PHI recorded an after-tax charge to net income of $93 million which was comprised of a non-cash pre-tax charge of $124 million ($86 million after-tax) to reduce the equity value of these cross-border energy lease investments and a non-cash charge of $7 million after-tax to reflect the anticipated additional interest expense. On October 21, 2009, the U.S. Court of Federal Claims issued a decision in favor of a taxpayer regarding a cross-border energy lease investment transaction. PHI views this ruling as a favorable development in PHI’s dispute with the IRS because the transaction that is the subject of the ruling is similar in many respects to PHI’s cross-border energy lease investments. Based on an assessment of the timing of the litigation and an update of its assumptions with respect to the timing of taxes due, PHI recorded an additional non-cash charge to income of $3 million ($2 million after-tax) in the fourth quarter of 2009. Revenue Recognition Regulated Revenue The Power Delivery business recognizes revenue upon delivery of electricity and gas to its customers, including amounts for services rendered but not yet billed (unbilled revenue). Pepco Holdings recorded amounts for unbilled revenue of $199 million and $195 million as of December 31, 2009 and 2008, respectively. These amounts are included in Accounts Receivable. Pepco Holdings’ utility subsidiaries calculate unbilled revenue using an output based methodology. This methodology is based on the supply of electricity or 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 gas expected to be lost in the process of its transmission and distribution to customers), all of which 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 gas by the utility customers, such as fuel, energy, or other similar taxes, are components of the tariff rates charged by PHI subsidiaries and, as such, are billed to customers and recorded in Operating Revenues. Accruals for these taxes are recorded in Other Taxes. Excise tax related generally to the consumption of gasoline by PHI and its subsidiaries in the normal course of business is charged to operations, maintenance or construction, and is not material. Competitive Revenue The Competitive Energy business recognizes revenue upon delivery of electricity and gas to the customer, including amounts for electricity and gas delivered, but not yet billed. Sales and purchases of electric power to Independent System Operators (ISO) are netted hourly and classified as operating revenue or operating expenses, as appropriate. Unrealized derivative gains and losses are recognized in current earnings as revenue if the derivative activity does not qualify for hedge accounting or normal sales treatment under FASB guidance on derivatives and hedging (ASC 815). Revenue for Pepco Energy Services’ energy efficiency construction business is recognized using the percentage-of-completion method, which recognizes revenue as work is completed on the contract, and revenues from its operation and maintenance and other products and services contracts are recognized when earned. Taxes Assessed by a Governmental Authority on Revenue-Producing Transactions Taxes included in Pepco Holdings’ gross revenues were $323 million, $311 million and $318 million for the years ended December 31, 2009, 2008 and 2007, respectively. Accounting for Derivatives Pepco Holdings and its subsidiaries 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. The guidance requires derivative instruments to be measured at fair value. Derivatives are recorded on the Consolidated Balance Sheets as other assets or other liabilities unless designated as “normal purchases and sales.” Mark-to-market gains and losses on derivatives that are not designated as hedges are presented on the Consolidated Statements of Income as operating revenue. PHI uses mark-to-market accounting through earnings for derivatives that either do not qualify for hedge accounting or that management does not designate as hedges. The gain or loss on a derivative that hedges exposure to variable cash flow of a forecasted transaction is initially recorded in Other Comprehensive Income (a separate component of common stockholders’ equity) 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 a forecasted transaction is no longer probable, the deferred gain or loss in accumulated other comprehensive income is immediately reclassified to earnings. Gains or losses related to any ineffective portion of cash flow hedges are also recognized in earnings immediately as operating revenue or as a Fuel and Purchased Energy expense. 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 as operating revenue in the Consolidated Statements of Income. PHI designates certain commodity forwards as “normal purchase or normal sales,” which are not required to be recorded on a mark-to-market basis of accounting under FASB guidance. This type of contract is used in normal operations, settles physically, and follows standard accrual accounting. Unrealized gains and losses on these contracts do not appear on the Consolidated Balance Sheets. Examples of these transactions include purchases of fuel to be consumed in generating plants and actual receipts and deliveries of electric power. Normal purchases and sales transactions are presented on a gross basis, with normal sales recorded as operating revenue and normal purchases recorded as Fuel and Purchased Energy expenses. 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 are used to determine fair value. For some custom and complex instruments, internal models are used to interpolate broker-quality price information. For certain long-dated instruments, broker or exchange data are extrapolated for future periods where limited market information is available. Models are also used to estimate volumes for certain transactions. See Note (15), “Derivative Instruments and Hedging Activities,” for more information about the types of derivatives employed by PHI and the methodologies used to value them. 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 Income as operating revenue or as a 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. Normal purchase and sale transactions are presented gross on the Consolidated Statements of Income as they are realized. Unrealized derivative gains and losses are presented gross on the Consolidated Balance Sheets except where contractual netting agreements are in place with individual counterparties. Stock-Based Compensation Pepco Holdings 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. In addition, compensation expense recognized includes the cost for all stock-based awards granted prior to, but not yet vested as of January 1, 2006, measured at the grant-date fair value. 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/release from restriction, respectively. PHI has issued awards for both time-based restricted stock and performance-based restricted stock units that vest over a three year period. The compensation expense associated with these awards is based upon estimated fair value at grant date and is recognized over the three-year service period. The time-based awards have been issued annually beginning with the 2007-2009 period. Pepco Holdings estimates the fair value of each stock option award on the date of grant using the Black-Scholes-Merton option pricing model. This model uses assumptions related to expected option term, expected volatility, expected dividend yield, and risk-free interest rate. Pepco Holdings uses historical data to estimate option exercise and employee termination within the valuation model; separate groups of employees that have similar historical exercise behavior are considered separately for valuation purposes. The expected term of options granted is derived from the output of the option valuation model and represents the period of time that options granted are expected to be outstanding. Pepco Holdings’ current policy is to issue new shares to satisfy stock option exercises and the vesting of restricted stock awards. 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 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 amounts. On May 2, 2007, the FASB issued guidance on how an enterprise should determine whether a tax position is effectively settled for the purpose of recognizing previously unrecognized tax benefits. PHI applied the guidance on January 1, 2007. 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 are measured using presently enacted tax rates. See Note (12), “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 Assets and Regulatory Liabilities,” for additional information. PHI recognizes interest on under/over payments 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 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. Restricted Cash Equivalents The restricted cash equivalents included in Current Assets and the restricted cash equivalents included in Investments and Other Assets represent (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 with respect to the use of such cash equivalents. The classification as current or non-current conforms to the classification of the related liabilities. Accounts Receivable and Allowance for Uncollectible Accounts Pepco Holdings’ accounts receivable balances primarily consist of customer accounts receivable, other accounts receivable, and accrued unbilled revenue generated by subsidiaries in the Power Delivery and Competitive Energy business. 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 Income. PHI determines the amount of the allowance based on specific identification of material amounts at risk by customer and maintains a general 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. Although management 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 becomes known. Inventories Inventory is valued at the lower of cost or market value. Included in inventories are: <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr> <td width="5%"> </td> <td valign="top" width="2%" align="left">•</td> <td valign="top" width="1%"> </td> <td valign="top" align="left"> generation, transmission, and distribution materials and supplies; </td> </tr> </table> <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr> <td width="5%"> </td> <td valign="top" width="2%" align="left">•</td> <td valign="top" width="1%"> </td> <td valign="top" align="left"> natural gas, fuel oil, and coal; and </td> </tr> </table> <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr> <td width="5%"> </td> <td valign="top" width="2%" align="left">•</td> <td valign="top" width="1%"> </td> <td valign="top" align="left"> emission allowances, RECs and Regional Greenhouse Gas Initiative allowances. </td> </tr> </table> PHI utilizes the weighted average cost method of accounting for inventory items, other than fuel oil held for resale. 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 inventory are generally charged to inventory when purchased and then expensed or capitalized to plant, as appropriate, when installed. The costs of natural gas, coal, and fuel oil for generating plants, including transportation costs, are included in inventory when purchased and charged to fuel expense when used. The first in first out (FIFO) method is used for fuel oil inventory held for resale in Conectiv Energy’s oil marketing business. For PHI the FIFO method is not materially different from the weighted average cost method due to the high inventory turnover rate in the oil marketing business. Emission allowances received from the U.S. Environmental Protection Agency (EPA) are added to current inventory each year at a zero cost. Purchased emission allowances are recorded at cost. Emission allowances sold or consumed at the generating plants are expensed at a weighted-average cost. This cost tends to be relatively low due to the inclusion of the zero-basis allowances. At December 31, 2009 and 2008, the book value of emission allowances was $8 million and $11 million, respectively. Pepco Holdings has established a committee to monitor compliance with emissions regulations and to ensure its generating plants have the required number of allowances. RECs are transferrable, intangible energy certificates that represent proof that one megawatt-hour (MWh) of electricity was generated from an eligible renewable energy resource. RECs are added to current inventory each year at cost. RECs sold or consumed, to satisfy load requirements, are expensed at a weighted-average cost. At December 31, 2009 and 2008, the book value of RECs was $10 million and $3 million, respectively. At December 31, 2008, the market value of Conectiv Energy’s oil inventory was lower than cost and accordingly a pre-tax charge of $15 million was recorded. This charge is included in Fuel and Purchased Energy expense in the Consolidated Statements of Income. 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. Substantially all of Pepco Holdings’ goodwill was generated by Pepco’s acquisition of Conectiv in 2002 and was allocated to Pepco Holdings’ Power Delivery reporting unit based on the aggregation of its components. Pepco Holdings 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 reduce the fair value of a reporting unit below its carrying amount. 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 decline in PHI’s stock price causing market capitalization to fall further below book value; an adverse regulatory action; or an impairment of long-lived assets in the reporting unit. PHI performed its annual impairment test on November 1, 2009 and did not record an impairment charge as described in Note (6), “Goodwill.” Regulatory Assets and Regulatory Liabilities The Power Delivery operations of Pepco are regulated by the District of Columbia Public Service Commission (DCPSC) and the Maryland Public Service Commission (MPSC). The Power Delivery operations of DPL are regulated by the DPSC and the MPSC and, until the sale of its Virginia assets on January 2, 2008, were also regulated by the Virginia State Corporation Commission. DPL’s interstate transportation and wholesale sale of natural gas are regulated by the Federal Energy Regulatory Commission (FERC). The Power Delivery operations of ACE are regulated by the New Jersey Board of Public Utilities (NJBPU). The transmission and wholesale sale of electricity by Pepco, DPL, and ACE are regulated by FERC. The FASB guidance on Regulated Operations (ASC 980) applies to the Power Delivery businesses of Pepco, DPL, and ACE. It allows regulated entities, in appropriate circumstances, to establish regulatory assets and liabilities and to defer the income statement impact of certain costs that are expected to be recovered in future rates. 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 will be eliminated through a charge to earnings. Effective June 2007, the MPSC approved a bill stabilization adjustment mechanism (BSA) for retail customers of Pepco and DPL. The DCPSC also approved a BSA for Pepco’s retail customers, effective in November 2009. See Note (17) “Commitments and Contingencies — Regulatory and Other Matters — Rate Proceedings.” 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 the period. Pursuant to this mechanism, Pepco and DPL recognize either (a) 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 (b) 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 can include plant, office space, equipment, software, vehicles, and power purchase agreements. 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, is accounted for using the financing method. In accordance with the financing method, investments in leased property are recorded as a receivable from the lessee to be recovered through the collection of future rentals. Income, including investment tax credits, on leveraged equipment leases is recognized over the life of the lease at a constant rate of return on the positive net investment. Each quarter, PHI reviews the carrying value of each lease, which includes a review of the underlying lease financial assumptions, the timing and collectibility of cash flows, and the credit quality (including, if available, credit ratings) of the lessee. Changes to the underlying assumptions, if any, would be 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 occur. Operating Leases An operating lease 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 are treated as operating leases; therefore, in accordance with FASB guidance on Regulated Operations, 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 might fall within the criteria of contracts containing a lease if the arrangement conveys the right to use and control property, plant or equipment. If so, PHI is required to determine whether capital or operating lease accounting is appropriate. Property, Plant and Equipment Property, plant and equipment are 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 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. Property, plant and equipment, other than electric and gas facilities, 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, 2009, 2008, and 2007. <table border="0" cellspacing="0" cellpadding="0" width="100%" align="center"> <tr> <td width="81%"></td> <td valign="bottom" width="2%"></td> <td></td> <td></td> <td valign="bottom" width="2%"></td> <td></td> <td></td> <td valign="bottom" width="2%"></td> <td></td> <td></td> <td valign="bottom" width="2%"></td> <td></td> <td></td> <td valign="bottom" width="2%"></td> <td></td> <td></td> <td valign="bottom" width="2%"></td> <td></td> <td></td> </tr> <tr> <td valign="bottom"> </td> <td valign="bottom"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="7" align="center">Transmission and Distribution</td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="7" align="center">Generation</td> <td valign="bottom"> </td> </tr> <tr> <td valign="bottom"> </td> <td valign="bottom"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="center">2009</td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="center">2008</td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="center">2007</td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="center">2009</td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="center">2008</td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="center">2007</td> <td valign="bottom"> </td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> Pepco </td> <td valign="bottom"> </td> <td valign="bottom" align="right">2.7</td> <td valign="bottom" nowrap="nowrap">% </td> <td valign="bottom"> </td> <td valign="bottom" align="right">2.7</td> <td valign="bottom" nowrap="nowrap">% </td> <td valign="bottom"> </td> <td valign="bottom" align="right">3.0</td> <td valign="bottom" nowrap="nowrap">%</td> <td valign="bottom"> </td> <td valign="bottom" align="right">— </td> <td valign="bottom" nowrap="nowrap"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">— </td> <td valign="bottom" nowrap="nowrap"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">— </td> <td valign="bottom" nowrap="nowrap"> </td> </tr> <tr> <td valign="top"> DPL </td> <td valign="bottom"> </td> <td valign="bottom" align="right">2.8</td> <td valign="bottom" nowrap="nowrap">% </td> <td valign="bottom"> </td> <td valign="bottom" align="right">2.8</td> <td valign="bottom" nowrap="nowrap">% </td> <td valign="bottom"> </td> <td valign="bottom" align="right">2.9</td> <td valign="bottom" nowrap="nowrap">%</td> <td valign="bottom"> </td> <td valign="bottom" align="right">— </td> <td valign="bottom" nowrap="nowrap"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">— </td> <td valign="bottom" nowrap="nowrap"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">— </td> <td valign="bottom" nowrap="nowrap"> </td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> ACE </td> <td valign="bottom"> </td> <td valign="bottom" align="right">2.8</td> <td valign="bottom" nowrap="nowrap">% </td> <td valign="bottom"> </td> <td valign="bottom" align="right">2.8</td> <td valign="bottom" nowrap="nowrap">% </td> <td valign="bottom"> </td> <td valign="bottom" align="right">2.9</td> <td valign="bottom" nowrap="nowrap">%</td> <td valign="bottom"> </td> <td valign="bottom" align="right">— </td> <td valign="bottom" nowrap="nowrap"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">— </td> <td valign="bottom" nowrap="nowrap"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">— </td> <td valign="bottom" nowrap="nowrap"> </td> </tr> <tr> <td valign="top"> Conectiv Energy </td> <td valign="bottom"> </td> <td valign="bottom" align="right">— </td> <td valign="bottom" nowrap="nowrap"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">— </td> <td valign="bottom" nowrap="nowrap"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">— </td> <td valign="bottom" nowrap="nowrap"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">2.0</td> <td valign="bottom" nowrap="nowrap">% </td> <td valign="bottom"> </td> <td valign="bottom" align="right">2.0</td> <td valign="bottom" nowrap="nowrap">% </td> <td valign="bottom"> </td> <td valign="bottom" align="right">2.0</td> <td valign="bottom" nowrap="nowrap">% </td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> Pepco Energy Services </td> <td valign="bottom"> </td> <td valign="bottom" align="right">— </td> <td valign="bottom" nowrap="nowrap"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">— </td> <td valign="bottom" nowrap="nowrap"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">— </td> <td valign="bottom" nowrap="nowrap"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">11.4</td> <td valign="bottom" nowrap="nowrap">%(a) </td> <td valign="bottom"> </td> <td valign="bottom" align="right">9.5</td> <td valign="bottom" nowrap="nowrap">% </td> <td valign="bottom"> </td> <td valign="bottom" align="right">10.1</td> <td valign="bottom" nowrap="nowrap">% </td> </tr> </table> <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr> <td valign="top" width="4%" align="left">(a)</td> <td valign="top" align="left">Increase in 2009 due to accelerated depreciation of the Benning Road and Buzzard Point generating plants scheduled for retirement in May 2012.</td> </tr> </table> In accordance with FASB guidance, costs associated with planned major maintenance activities related to generation facilities are expensed as incurred. Long-Lived Asset Impairment Evaluation Pepco Holdings evaluates long-lived assets to be held and used, such as generating property and equipment and real estate, to determine if they are impaired whenever events or changes in circumstances indicate that their carrying amount 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 fair value if the sum of its expected future undiscounted cash flows is less than its carrying amount. For long-lived assets held for sale, an impairment loss is recognized to the extent that the asset’s carrying amount exceeds its 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 as Allowance for Funds Used During Construction (AFUDC) the capital costs of financing the construction of plant and equipment. The debt portion of AFUDC is recorded as a reduction of “interest expense” and the equity portion of AFUDC is credited to “other income” in the accompanying Consolidated Statements of Income. Pepco Holdings recorded AFUDC for borrowed funds of $7 million, $5 million, and $7 million for the years ended December 31, 2009, 2008 and 2007, respectively. Pepco Holdings recorded amounts for the equity component of AFUDC of $3 million, $5 million and $4 million for the years ended December 31, 2009, 2008, and 2007, 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 issues. When refinancing existing debt of PHI’s utility subsidiaries, any unamortized premiums, discounts and debt issuance costs are classified as regulatory assets and are amortized generally over the life of the original issue. Any costs associated with the redemption of the existing debt are amortized generally over the life of the original issue. Asset Removal Costs In accordance with FASB guidance on asset retirement obligations (ASC 410), asset removal costs are recorded as regulatory liabilities. At December 31, 2009 and 2008, $352 million and $341 million, respectively, are included within regulatory liabilities in the accompanying Consolidated Balance Sheets. Pension and Other Postretirement Benefit Plans Pepco Holdings sponsors a non-contributory defined benefit retirement plan that covers substantially all employees of Pepco, DPL, ACE and certain employees of other Pepco Holdings subsidiaries (the PHI Retirement Plan). Pepco Holdings also provides supplemental retirement benefits to certain eligible executives and key employees through a nonqualified retirement plan and provides certain postretirement health care and life insurance benefits for eligible retired employees. Pepco Holdings accounts for the PHI Retirement Plan, nonqualified retirement plans and its retirement healthcare and life insurance benefits for eligible employees in accordance with FASB guidance on Retirement Benefits (ASC 715). See Note (10), “Pensions and Other Postretirement Benefits,” for additional information. Preferred Stock As of December 31, 2009 and 2008, PHI had 40 million shares of preferred stock authorized for issuance, with a par value of $.01 per share. No shares of preferred stock were outstanding at December 31, 2009 and 2008. Subsequent Events PHI has evaluated all subsequent events through February 26, 2010, the date of the issuance of the Consolidated Financial Statements. 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 which are not considered material either individually or in the aggregate. In 2009, DPL recorded additional revenue of $14 million related to the unbilled portion of the Gas Cost Rate (GCR) revenue, which was not previously recognized. Because the GCR revenue is deferred, an additional expense of $14 million has also been recorded in 2009. Consequently, there is no impact on consolidated net income as a result of this adjustment. In the fourth quarter of 2009, PHI recorded certain adjustments to correct errors related to income taxes. These adjustments, which primarily resulted from the completion of additional analysis of the current and deferred income tax balances, resulted in a decrease in income tax expense of $6 million. During 2008, PHI identified an error in the accounting for certain of its restricted stock awards granted under the Long-Term Incentive Plan that resulted in an understatement of stock-based compensation expense in 2006 and 2007. Pepco and DPL also recorded adjustments to correct errors in Other Operation and Maintenance expenses for prior periods dating back to February 2005 for which late payment fees were incorrectly recognized. These errors were corrected in 2008, resulting in an increase in Other Operation and Maintenance expenses for the year ended December 31, 2008 of $15 million. </div>

</NonNumbericText>

<hasSegments> false </hasSegments>

<hasScenarios> false </hasScenarios>

</Cell>

</Cells>

<ElementDefenition> No definition available. </ElementDefenition>

<ElementReferences> No authoritative reference available. </ElementReferences>

<IsTotalLabel> false </IsTotalLabel>

</Row>

<Row>

<Label> POTOMAC ELECTRIC POWER CO </Label>

<ShortDefinition> No definition available. </ShortDefinition>

<IsReportTitle> false </IsReportTitle>

<IsSubReportEnd> false </IsSubReportEnd>

<IsCalendarTitle> false </IsCalendarTitle>

<IsTuple> false </IsTuple>

<IsAbstractGroupTitle> false </IsAbstractGroupTitle>

<IsBeginningBalance> false </IsBeginningBalance>

<IsEndingBalance> false </IsEndingBalance>

<IsEPS> false </IsEPS>

<Cells>

<Cell>

<ShowCurrencySymbol> false </ShowCurrencySymbol>

<IsNumeric> false </IsNumeric>

<hasSegments> false </hasSegments>

<hasScenarios> false </hasScenarios>

</Cell>

</Cells>

<ElementDefenition> No definition available. </ElementDefenition>

<ElementReferences> No authoritative reference available. </ElementReferences>

<IsTotalLabel> false </IsTotalLabel>

</Row>

<Row>

<Label> SIGNIFICANT ACCOUNTING POLICIES </Label>

<ElementName> us-gaap_SignificantAccountingPoliciesTextBlock </ElementName>

<PeriodType> duration </PeriodType>

<ElementDataType> string </ElementDataType>

<ShortDefinition> No definition available. </ShortDefinition>

<IsReportTitle> false </IsReportTitle>

<IsSegmentTitle> false </IsSegmentTitle>

<IsSubReportEnd> false </IsSubReportEnd>

<IsCalendarTitle> false </IsCalendarTitle>

<IsTuple> false </IsTuple>

<IsAbstractGroupTitle> false </IsAbstractGroupTitle>

<IsBeginningBalance> false </IsBeginningBalance>

<IsEndingBalance> false </IsEndingBalance>

<IsEPS> false </IsEPS>

<Cells>

<Cell>

<ShowCurrencySymbol> false </ShowCurrencySymbol>

<IsNumeric> false </IsNumeric>

</NonNumbericText>

<hasSegments> false </hasSegments>

<hasScenarios> false </hasScenarios>

</Cell>

</Cells>

<ElementDefenition> No definition available. </ElementDefenition>

<ElementReferences> No authoritative reference available. </ElementReferences>

<IsTotalLabel> false </IsTotalLabel>

</Row>

<Row>

<Label> DELMARVA POWER & LIGHT CO /DE/ </Label>

<ShortDefinition> No definition available. </ShortDefinition>

<IsReportTitle> false </IsReportTitle>

<IsSubReportEnd> false </IsSubReportEnd>

<IsCalendarTitle> false </IsCalendarTitle>

<IsTuple> false </IsTuple>

<IsAbstractGroupTitle> false </IsAbstractGroupTitle>

<IsBeginningBalance> false </IsBeginningBalance>

<IsEndingBalance> false </IsEndingBalance>

<IsEPS> false </IsEPS>

<Cells>

<Cell>

<ShowCurrencySymbol> false </ShowCurrencySymbol>

<IsNumeric> false </IsNumeric>

<hasSegments> false </hasSegments>

<hasScenarios> false </hasScenarios>

</Cell>

</Cells>

<ElementDefenition> No definition available. </ElementDefenition>

<ElementReferences> No authoritative reference available. </ElementReferences>

<IsTotalLabel> false </IsTotalLabel>

</Row>

<Row>

<Label> SIGNIFICANT ACCOUNTING POLICIES </Label>

<ElementName> us-gaap_SignificantAccountingPoliciesTextBlock </ElementName>

<PeriodType> duration </PeriodType>

<ElementDataType> string </ElementDataType>

<ShortDefinition> No definition available. </ShortDefinition>

<IsReportTitle> false </IsReportTitle>

<IsSegmentTitle> false </IsSegmentTitle>

<IsSubReportEnd> false </IsSubReportEnd>

<IsCalendarTitle> false </IsCalendarTitle>

<IsTuple> false </IsTuple>

<IsAbstractGroupTitle> false </IsAbstractGroupTitle>

<IsBeginningBalance> false </IsBeginningBalance>

<IsEndingBalance> false </IsEndingBalance>

<IsEPS> false </IsEPS>

<Cells>

<Cell>

<ShowCurrencySymbol> false </ShowCurrencySymbol>

<IsNumeric> false </IsNumeric>

</NonNumbericText>

<hasSegments> false </hasSegments>

<hasScenarios> false </hasScenarios>

</Cell>

</Cells>

<ElementDefenition> No definition available. </ElementDefenition>

<ElementReferences> No authoritative reference available. </ElementReferences>

<IsTotalLabel> false </IsTotalLabel>

</Row>

<Row>

<Label> ATLANTIC CITY ELECTRIC CO </Label>

<ShortDefinition> No definition available. </ShortDefinition>

<IsReportTitle> false </IsReportTitle>

<IsSubReportEnd> false </IsSubReportEnd>

<IsCalendarTitle> false </IsCalendarTitle>

<IsTuple> false </IsTuple>

<IsAbstractGroupTitle> false </IsAbstractGroupTitle>

<IsBeginningBalance> false </IsBeginningBalance>

<IsEndingBalance> false </IsEndingBalance>

<IsEPS> false </IsEPS>

<Cells>

<Cell>

<ShowCurrencySymbol> false </ShowCurrencySymbol>

<IsNumeric> false </IsNumeric>

<hasSegments> false </hasSegments>

<hasScenarios> false </hasScenarios>

</Cell>

</Cells>

<ElementDefenition> No definition available. </ElementDefenition>

<ElementReferences> No authoritative reference available. </ElementReferences>

<IsTotalLabel> false </IsTotalLabel>

</Row>

<Row>

<Label> SIGNIFICANT ACCOUNTING POLICIES </Label>

<ElementName> us-gaap_SignificantAccountingPoliciesTextBlock </ElementName>

<PeriodType> duration </PeriodType>

<ElementDataType> string </ElementDataType>

<ShortDefinition> No definition available. </ShortDefinition>

<IsReportTitle> false </IsReportTitle>

<IsSegmentTitle> false </IsSegmentTitle>

<IsSubReportEnd> false </IsSubReportEnd>

<IsCalendarTitle> false </IsCalendarTitle>

<IsTuple> false </IsTuple>

<IsAbstractGroupTitle> false </IsAbstractGroupTitle>

<IsBeginningBalance> false </IsBeginningBalance>

<IsEndingBalance> false </IsEndingBalance>

<IsEPS> false </IsEPS>

<Cells>

<Cell>

<ShowCurrencySymbol> false </ShowCurrencySymbol>

<IsNumeric> false </IsNumeric>

</NonNumbericText>

<hasSegments> false </hasSegments>

<hasScenarios> false </hasScenarios>

</Cell>

</Cells>

<ElementDefenition> No definition available. </ElementDefenition>

<ElementReferences> No authoritative reference available. </ElementReferences>

<IsTotalLabel> false </IsTotalLabel>

</Row>

</Rows>

<ComparabilityReport> false </ComparabilityReport>

<HasScenarios> false </HasScenarios>

<MonetaryRoundingLevel> UnKnown </MonetaryRoundingLevel>

<SharesRoundingLevel> UnKnown </SharesRoundingLevel>

<PerShareRoundingLevel> UnKnown </PerShareRoundingLevel>

<HasPureData> false </HasPureData>

</InstanceReport>

↑Top

Filing Submission 0001193125-10-041024 – Alternative Formats (Word / Rich Text, HTML, Plain Text, et al.)

Atlantic City Electric Co, et al. – ‘10-K’ for 12/31/09 – ‘XML.R10’

On: Thursday, 2/25/10, at 6:04pm ET · As of: 2/26/10 · For: 12/31/09 · Accession #: 1193125-10-41024 · File #s: 1-01072, 1-01405, 1-03559, 1-31403

Previous ‘10-K’: ‘10-K’ on 3/2/09 for 12/31/08 · Next: ‘10-K’ on 2/25/11 for 12/31/10 · Latest: ‘10-K’ on 2/21/24 for 12/31/23

Annual Report — Form 10-K — Sect. 13 / 15(d) – SEA’34Filing Table of Contents

‘XML.R10’ — Significant Accounting Policies

This Financial Report is an XBRL XML File.

Annual Report — Form 10-K — Sect. 13 / 15(d) – SEA’34
Filing Table of Contents