Commission
File Number
|
|
Registrants, State of Incorporation,
Address, and Telephone Number
|
|
I.R.S. Employer
Identification No.
|
001-09120
|
|
PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED
(A New Jersey Corporation)
80 Park Plaza
Newark, New Jersey 07102
973 430-7000
http://www.pseg.com
|
|
22-2625848
|
001-00973
|
|
PUBLIC SERVICE ELECTRIC AND GAS COMPANY
(A New Jersey Corporation)
80 Park Plaza
Newark, New Jersey 07102
973 430-7000
http://www.pseg.com
|
|
22-1212800
|
001-34232
|
|
PSEG POWER LLC
(A Delaware Limited Liability Company)
80 Park Plaza
Newark, New Jersey 07102
973 430-7000
http://www.pseg.com
|
|
22-3663480
|
Public Service Enterprise Group Incorporated
|
Large accelerated filer
x
|
Accelerated filer
o
|
Non-accelerated filer
o
|
Smaller reporting company
o
|
Emerging growth company
o
|
|
|
|
|
|
|
Public Service Electric and Gas Company
|
Large accelerated filer
o
|
Accelerated filer
o
|
Non-accelerated filer
x
|
Smaller reporting company
o
|
Emerging growth company
o
|
|
|
|
|
|
|
PSEG Power LLC
|
Large accelerated filer
o
|
Accelerated filer
o
|
Non-accelerated filer
x
|
Smaller reporting company
o
|
Emerging growth company
o
|
|
|
Page
|
FILING FORMAT
|
||
PART I. FINANCIAL INFORMATION
|
|
|
Item 1.
|
Financial Statements
|
|
|
||
|
||
|
||
|
Notes to Condensed Consolidated Financial Statements
|
|
|
||
|
||
|
Note 3. Early Plant Retirements
|
|
|
Note 4. Variable Interest Entity (VIE)
|
|
|
Note 5. Rate Filings
|
|
|
Note 6. Financing Receivables
|
|
|
Note 7. Available-for-Sale Securities
|
|
|
Note 8. Pension and Other Postretirement Benefits (OPEB)
|
|
|
Note 9. Commitments and Contingent Liabilities
|
|
|
Note 10. Debt and Credit Facilities
|
|
|
Note 11. Financial Risk Management Activities
|
|
|
Note 12. Fair Value Measurements
|
|
|
Note 13. Other Income and Deductions
|
|
|
Note 14. Income Taxes
|
|
|
Note 15. Accumulated Other Comprehensive Income (Loss), Net of Tax
|
|
|
Note 16. Earnings Per Share (EPS) and Dividends
|
|
|
Note 17. Financial Information by Business Segments
|
|
|
Note 18. Related-Party Transactions
|
|
|
Note 19. Guarantees of Debt
|
|
Item 2.
|
||
|
Executive Overview of 2017 and Future Outlook
|
|
|
||
|
||
|
||
|
||
Item 3.
|
||
Item 4.
|
||
|
|
|
PART II. OTHER INFORMATION
|
|
|
Item 1.
|
||
Item 1A.
|
||
Item 2.
|
||
Item 5.
|
||
Item 6.
|
||
|
•
|
fluctuations in wholesale power and natural gas markets, including the potential impacts on the economic viability of our generation units;
|
•
|
our ability to obtain adequate fuel supply;
|
•
|
any inability to manage our energy obligations with available supply;
|
•
|
increases in competition in wholesale energy and capacity markets;
|
•
|
changes in technology related to energy generation, distribution and consumption and customer usage patterns;
|
•
|
economic downturns;
|
•
|
third-party credit risk relating to our sale of generation output and purchase of fuel;
|
•
|
adverse performance of our decommissioning and defined benefit plan trust fund investments and changes in funding requirements;
|
•
|
changes in state and federal legislation and regulations;
|
•
|
the impact of pending rate case proceedings;
|
•
|
regulatory, financial, environmental, health and safety risks associated with our ownership and operation of nuclear facilities;
|
•
|
adverse changes in energy industry laws, policies and regulations, including market structures and transmission planning;
|
•
|
changes in federal and state environmental regulations and enforcement;
|
•
|
delays in receipt of, or an inability to receive, necessary licenses and permits;
|
•
|
adverse outcomes of any legal, regulatory or other proceeding, settlement, investigation or claim applicable to us and/or the energy industry;
|
•
|
changes in tax laws and regulations;
|
•
|
the impact of our holding company structure on our ability to meet our corporate funding needs, service debt and pay dividends;
|
•
|
lack of growth or slower growth in the number of customers or changes in customer demand;
|
•
|
any inability of Power to meet its commitments under forward sale obligations;
|
•
|
reliance on transmission facilities that we do not own or control and the impact on our ability to maintain adequate transmission capacity;
|
•
|
any inability to successfully develop or construct generation, transmission and distribution projects;
|
•
|
any equipment failures, accidents, severe weather events or other incidents that impact our ability to provide safe and reliable service to our customers;
|
•
|
our inability to exercise control over the operations of generation facilities in which we do not maintain a controlling interest;
|
•
|
any inability to maintain sufficient liquidity;
|
•
|
any inability to realize anticipated tax benefits or retain tax credits;
|
•
|
challenges associated with recruitment and/or retention of key executives and a qualified workforce;
|
•
|
the impact of our covenants in our debt instruments on our operations; and
|
•
|
the impact of acts of terrorism, cybersecurity attacks or intrusions.
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
Three Months Ended
|
|
Six Months Ended
|
|
||||||||||||
|
|
June 30,
|
|
June 30,
|
|
||||||||||||
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
||||||||
|
OPERATING REVENUES
|
$
|
2,133
|
|
|
$
|
1,905
|
|
|
$
|
4,725
|
|
|
$
|
4,521
|
|
|
|
OPERATING EXPENSES
|
|
|
|
|
|
|
|
|
||||||||
|
Energy Costs
|
588
|
|
|
624
|
|
|
1,462
|
|
|
1,460
|
|
|
||||
|
Operation and Maintenance
|
708
|
|
|
710
|
|
|
1,420
|
|
|
1,439
|
|
|
||||
|
Depreciation and Amortization
|
641
|
|
|
224
|
|
|
1,469
|
|
|
448
|
|
|
||||
|
Total Operating Expenses
|
1,937
|
|
|
1,558
|
|
|
4,351
|
|
|
3,347
|
|
|
||||
|
OPERATING INCOME
|
196
|
|
|
347
|
|
|
374
|
|
|
1,174
|
|
|
||||
|
Income from Equity Method Investments
|
5
|
|
|
4
|
|
|
8
|
|
|
6
|
|
|
||||
|
Other Income
|
70
|
|
|
44
|
|
|
142
|
|
|
92
|
|
|
||||
|
Other Deductions
|
(9
|
)
|
|
(10
|
)
|
|
(20
|
)
|
|
(31
|
)
|
|
||||
|
Other-Than-Temporary Impairments
|
(3
|
)
|
|
(10
|
)
|
|
(4
|
)
|
|
(20
|
)
|
|
||||
|
Interest Expense
|
(91
|
)
|
|
(97
|
)
|
|
(189
|
)
|
|
(189
|
)
|
|
||||
|
INCOME BEFORE INCOME TAXES
|
168
|
|
|
278
|
|
|
311
|
|
|
1,032
|
|
|
||||
|
Income Tax Expense
|
(59
|
)
|
|
(91
|
)
|
|
(88
|
)
|
|
(374
|
)
|
|
||||
|
NET INCOME
|
$
|
109
|
|
|
$
|
187
|
|
|
$
|
223
|
|
|
$
|
658
|
|
|
|
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
|
|
|
|
|
|
|
|
|
||||||||
|
BASIC
|
505
|
|
|
505
|
|
|
505
|
|
|
505
|
|
|
||||
|
DILUTED
|
507
|
|
|
508
|
|
|
507
|
|
|
508
|
|
|
||||
|
NET INCOME PER SHARE:
|
|
|
|
|
|
|
|
|
||||||||
|
BASIC
|
$
|
0.22
|
|
|
$
|
0.37
|
|
|
$
|
0.44
|
|
|
$
|
1.30
|
|
|
|
DILUTED
|
$
|
0.22
|
|
|
$
|
0.37
|
|
|
$
|
0.44
|
|
|
$
|
1.30
|
|
|
|
DIVIDENDS PAID PER SHARE OF COMMON STOCK
|
$
|
0.43
|
|
|
$
|
0.41
|
|
|
$
|
0.86
|
|
|
$
|
0.82
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
Three Months Ended
|
|
Six Months Ended
|
|
||||||||||||
|
|
June 30,
|
|
June 30,
|
|
||||||||||||
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
||||||||
|
NET INCOME
|
$
|
109
|
|
|
$
|
187
|
|
|
$
|
223
|
|
|
$
|
658
|
|
|
|
Other Comprehensive Income (Loss), net of tax
|
|
|
|
|
|
|
|
|
||||||||
|
Unrealized Gains (Losses) on Available-for-Sale Securities, net of tax (expense) benefit of $(9), $(10), $(25) and $(26) for the three and six months ended 2017 and 2016, respectively
|
10
|
|
|
10
|
|
|
25
|
|
|
26
|
|
|
||||
|
Unrealized Gains (Losses) on Cash Flow Hedges, net of tax (expense) benefit of $0, $0, $0 and $(1) for the three and six months ended 2017 and 2016, respectively
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
1
|
|
|
||||
|
Pension/Other Postretirement Benefit Costs (OPEB) adjustment, net of tax (expense) benefit of $(4), $(6), $(8) and $(12) for the three and six months ended 2017 and 2016, respectively
|
6
|
|
|
8
|
|
|
12
|
|
|
16
|
|
|
||||
|
Other Comprehensive Income (Loss), net of tax
|
16
|
|
|
17
|
|
|
37
|
|
|
43
|
|
|
||||
|
COMPREHENSIVE INCOME
|
$
|
125
|
|
|
$
|
204
|
|
|
$
|
260
|
|
|
$
|
701
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
June 30,
2017 |
|
December 31,
2016 |
|
||||
|
ASSETS
|
|
|||||||
|
CURRENT ASSETS
|
|
|
|
|
||||
|
Cash and Cash Equivalents
|
$
|
430
|
|
|
$
|
423
|
|
|
|
Accounts Receivable, net of allowances of $61 in 2017 and $68 in 2016
|
1,021
|
|
|
1,161
|
|
|
||
|
Tax Receivable
|
9
|
|
|
78
|
|
|
||
|
Unbilled Revenues
|
210
|
|
|
260
|
|
|
||
|
Fuel
|
270
|
|
|
326
|
|
|
||
|
Materials and Supplies, net
|
577
|
|
|
561
|
|
|
||
|
Prepayments
|
273
|
|
|
76
|
|
|
||
|
Derivative Contracts
|
113
|
|
|
163
|
|
|
||
|
Regulatory Assets
|
276
|
|
|
199
|
|
|
||
|
Other
|
9
|
|
|
7
|
|
|
||
|
Total Current Assets
|
3,188
|
|
|
3,254
|
|
|
||
|
PROPERTY, PLANT AND EQUIPMENT
|
38,794
|
|
|
39,337
|
|
|
||
|
Less: Accumulated Depreciation and Amortization
|
(9,157
|
)
|
|
(10,051
|
)
|
|
||
|
Net Property, Plant and Equipment
|
29,637
|
|
|
29,286
|
|
|
||
|
NONCURRENT ASSETS
|
|
|
|
|
||||
|
Regulatory Assets
|
3,349
|
|
|
3,319
|
|
|
||
|
Long-Term Investments
|
961
|
|
|
1,050
|
|
|
||
|
Nuclear Decommissioning Trust (NDT) Fund
|
1,968
|
|
|
1,859
|
|
|
||
|
Long-Term Tax Receivable
|
111
|
|
|
104
|
|
|
||
|
Long-Term Receivable of Variable Interest Entity (VIE)
|
600
|
|
|
589
|
|
|
||
|
Other Special Funds
|
224
|
|
|
217
|
|
|
||
|
Goodwill
|
16
|
|
|
16
|
|
|
||
|
Other Intangibles
|
120
|
|
|
98
|
|
|
||
|
Derivative Contracts
|
90
|
|
|
24
|
|
|
||
|
Other
|
260
|
|
|
254
|
|
|
||
|
Total Noncurrent Assets
|
7,699
|
|
|
7,530
|
|
|
||
|
TOTAL ASSETS
|
$
|
40,524
|
|
|
$
|
40,070
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
June 30,
2017 |
|
December 31,
2016 |
|
||||
|
LIABILITIES AND CAPITALIZATION
|
|
|||||||
|
CURRENT LIABILITIES
|
|
|
|
|
||||
|
Long-Term Debt Due Within One Year
|
$
|
900
|
|
|
$
|
500
|
|
|
|
Commercial Paper and Loans
|
—
|
|
|
388
|
|
|
||
|
Accounts Payable
|
1,293
|
|
|
1,459
|
|
|
||
|
Derivative Contracts
|
8
|
|
|
13
|
|
|
||
|
Accrued Interest
|
99
|
|
|
97
|
|
|
||
|
Accrued Taxes
|
46
|
|
|
31
|
|
|
||
|
Clean Energy Program
|
200
|
|
|
142
|
|
|
||
|
Obligation to Return Cash Collateral
|
134
|
|
|
132
|
|
|
||
|
Regulatory Liabilities
|
51
|
|
|
88
|
|
|
||
|
Other
|
433
|
|
|
426
|
|
|
||
|
Total Current Liabilities
|
3,164
|
|
|
3,276
|
|
|
||
|
NONCURRENT LIABILITIES
|
|
|
|
|
||||
|
Deferred Income Taxes and Investment Tax Credits (ITC)
|
8,755
|
|
|
8,658
|
|
|
||
|
Regulatory Liabilities
|
99
|
|
|
118
|
|
|
||
|
Clean Energy Program
|
27
|
|
|
—
|
|
|
||
|
Asset Retirement Obligations
|
744
|
|
|
726
|
|
|
||
|
OPEB Costs
|
1,304
|
|
|
1,324
|
|
|
||
|
OPEB Costs of Servco
|
467
|
|
|
452
|
|
|
||
|
Accrued Pension Costs
|
525
|
|
|
568
|
|
|
||
|
Accrued Pension Costs of Servco
|
124
|
|
|
128
|
|
|
||
|
Environmental Costs
|
378
|
|
|
401
|
|
|
||
|
Derivative Contracts
|
1
|
|
|
3
|
|
|
||
|
Long-Term Accrued Taxes
|
192
|
|
|
180
|
|
|
||
|
Other
|
205
|
|
|
211
|
|
|
||
|
Total Noncurrent Liabilities
|
12,821
|
|
|
12,769
|
|
|
||
|
COMMITMENTS AND CONTINGENT LIABILITIES (See Note 9)
|
|
|
|
|
|
|
||
|
CAPITALIZATION
|
|
|
|
|
||||
|
LONG-TERM DEBT
|
11,621
|
|
|
10,895
|
|
|
||
|
STOCKHOLDERS’ EQUITY
|
|
|
|
|
||||
|
Common Stock, no par, authorized 1,000 shares; issued, 2017 and 2016—534 shares
|
4,929
|
|
|
4,936
|
|
|
||
|
Treasury Stock, at cost, 2017 and 2016—29 shares
|
(747
|
)
|
|
(717
|
)
|
|
||
|
Retained Earnings
|
8,962
|
|
|
9,174
|
|
|
||
|
Accumulated Other Comprehensive Loss
|
(226
|
)
|
|
(263
|
)
|
|
||
|
Total Stockholders’ Equity
|
12,918
|
|
|
13,130
|
|
|
||
|
Total Capitalization
|
24,539
|
|
|
24,025
|
|
|
||
|
TOTAL LIABILITIES AND CAPITALIZATION
|
$
|
40,524
|
|
|
$
|
40,070
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
Six Months Ended
|
|
||||||
|
|
June 30,
|
|
||||||
|
|
2017
|
|
2016
|
|
||||
|
CASH FLOWS FROM OPERATING ACTIVITIES
|
|
|
|
|
||||
|
Net Income
|
$
|
223
|
|
|
$
|
658
|
|
|
|
Adjustments to Reconcile Net Income to Net Cash Flows from Operating Activities:
|
|
|
|
|
||||
|
Depreciation and Amortization
|
1,469
|
|
|
448
|
|
|
||
|
Amortization of Nuclear Fuel
|
101
|
|
|
105
|
|
|
||
|
Renewable Energy Credit (REC) Compliance Accrual
|
51
|
|
|
50
|
|
|
||
|
Provision for Deferred Income Taxes (Other than Leases) and ITC
|
91
|
|
|
334
|
|
|
||
|
Non-Cash Employee Benefit Plan Costs
|
45
|
|
|
63
|
|
|
||
|
Leveraged Lease (Income) Loss, Adjusted for Rents Received and Deferred Taxes
|
(30
|
)
|
|
(30
|
)
|
|
||
|
Net (Gain) Loss on Lease Investments
|
45
|
|
|
—
|
|
|
||
|
Net Realized and Unrealized (Gains) Losses on Energy Contracts and Other Derivatives
|
(42
|
)
|
|
153
|
|
|
||
|
Net Change in Regulatory Assets and Liabilities
|
(124
|
)
|
|
(125
|
)
|
|
||
|
Cost of Removal
|
(47
|
)
|
|
(74
|
)
|
|
||
|
Net Realized (Gains) Losses and (Income) Expense from NDT Fund
|
(58
|
)
|
|
(2
|
)
|
|
||
|
Net Change in Certain Current Assets and Liabilities:
|
|
|
|
|
||||
|
Tax Receivable
|
69
|
|
|
301
|
|
|
||
|
Accrued Taxes
|
15
|
|
|
94
|
|
|
||
|
Margin Deposit
|
59
|
|
|
(46
|
)
|
|
||
|
Other Current Assets and Liabilities
|
(56
|
)
|
|
(120
|
)
|
|
||
|
Employee Benefit Plan Funding and Related Payments
|
(49
|
)
|
|
(78
|
)
|
|
||
|
Other
|
(6
|
)
|
|
(9
|
)
|
|
||
|
Net Cash Provided By (Used In) Operating Activities
|
1,756
|
|
|
1,722
|
|
|
||
|
CASH FLOWS FROM INVESTING ACTIVITIES
|
|
|
|
|
|
|||
|
Additions to Property, Plant and Equipment
|
(1,981
|
)
|
|
(1,971
|
)
|
|
||
|
Purchase of Emissions Allowances and RECs
|
(29
|
)
|
|
(36
|
)
|
|
||
|
Proceeds from Sales of Available-for-Sale Securities
|
711
|
|
|
392
|
|
|
||
|
Investments in Available-for-Sale Securities
|
(726
|
)
|
|
(407
|
)
|
|
||
|
Other
|
36
|
|
|
18
|
|
|
||
|
Net Cash Provided By (Used In) Investing Activities
|
(1,989
|
)
|
|
(2,004
|
)
|
|
||
|
CASH FLOWS FROM FINANCING ACTIVITIES
|
|
|
|
|
||||
|
Net Change in Commercial Paper and Loans
|
(388
|
)
|
|
(364
|
)
|
|
||
|
Issuance of Long-Term Debt
|
1,125
|
|
|
1,550
|
|
|
||
|
Redemption of Long-Term Debt
|
—
|
|
|
(171
|
)
|
|
||
|
Cash Dividends Paid on Common Stock
|
(435
|
)
|
|
(415
|
)
|
|
||
|
Other
|
(62
|
)
|
|
(64
|
)
|
|
||
|
Net Cash Provided By (Used In) Financing Activities
|
240
|
|
|
536
|
|
|
||
|
Net Increase (Decrease) in Cash and Cash Equivalents
|
7
|
|
|
254
|
|
|
||
|
Cash and Cash Equivalents at Beginning of Period
|
423
|
|
|
394
|
|
|
||
|
Cash and Cash Equivalents at End of Period
|
$
|
430
|
|
|
$
|
648
|
|
|
|
Supplemental Disclosure of Cash Flow Information:
|
|
|
|
|
||||
|
Income Taxes Paid (Received)
|
$
|
(30
|
)
|
|
$
|
(276
|
)
|
|
|
Interest Paid, Net of Amounts Capitalized
|
$
|
189
|
|
|
$
|
176
|
|
|
|
Accrued Property, Plant and Equipment Expenditures
|
$
|
513
|
|
|
$
|
513
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
Three Months Ended
|
|
Six Months Ended
|
|
||||||||||||
|
|
June 30,
|
|
June 30,
|
|
||||||||||||
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
||||||||
|
OPERATING REVENUES
|
$
|
1,368
|
|
|
$
|
1,350
|
|
|
$
|
3,180
|
|
|
$
|
3,062
|
|
|
|
OPERATING EXPENSES
|
|
|
|
|
|
|
|
|
||||||||
|
Energy Costs
|
472
|
|
|
529
|
|
|
1,225
|
|
|
1,258
|
|
|
||||
|
Operation and Maintenance
|
351
|
|
|
352
|
|
|
718
|
|
|
734
|
|
|
||||
|
Depreciation and Amortization
|
166
|
|
|
136
|
|
|
337
|
|
|
275
|
|
|
||||
|
Total Operating Expenses
|
989
|
|
|
1,017
|
|
|
2,280
|
|
|
2,267
|
|
|
||||
|
OPERATING INCOME
|
379
|
|
|
333
|
|
|
900
|
|
|
795
|
|
|
||||
|
Other Income
|
22
|
|
|
19
|
|
|
47
|
|
|
39
|
|
|
||||
|
Other Deductions
|
(1
|
)
|
|
(1
|
)
|
|
(2
|
)
|
|
(2
|
)
|
|
||||
|
Interest Expense
|
(69
|
)
|
|
(74
|
)
|
|
(144
|
)
|
|
(142
|
)
|
|
||||
|
INCOME BEFORE INCOME TAXES
|
331
|
|
|
277
|
|
|
801
|
|
|
690
|
|
|
||||
|
Income Tax Expense
|
(123
|
)
|
|
(98
|
)
|
|
(294
|
)
|
|
(249
|
)
|
|
||||
|
NET INCOME
|
$
|
208
|
|
|
$
|
179
|
|
|
$
|
507
|
|
|
$
|
441
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
Three Months Ended
|
|
Six Months Ended
|
|
||||||||||||
|
|
June 30,
|
|
June 30,
|
|
||||||||||||
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
||||||||
|
NET INCOME
|
$
|
208
|
|
|
$
|
179
|
|
|
$
|
507
|
|
|
$
|
441
|
|
|
|
Unrealized Gains (Losses) on Available-for-Sale Securities, net of tax (expense) benefit of $0, $0, $1 and $0 for the three and six months ended 2017 and 2016, respectively
|
—
|
|
|
1
|
|
|
(1
|
)
|
|
1
|
|
|
||||
|
COMPREHENSIVE INCOME
|
$
|
208
|
|
|
$
|
180
|
|
|
$
|
506
|
|
|
$
|
442
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
June 30,
2017 |
|
December 31,
2016 |
|
||||
|
ASSETS
|
|
|||||||
|
CURRENT ASSETS
|
|
|
|
|
||||
|
Cash and Cash Equivalents
|
$
|
192
|
|
|
$
|
390
|
|
|
|
Accounts Receivable, net of allowances of $61 in 2017 and $68 in 2016
|
755
|
|
|
810
|
|
|
||
|
Accounts Receivable—Affiliated Companies
|
20
|
|
|
76
|
|
|
||
|
Unbilled Revenues
|
210
|
|
|
260
|
|
|
||
|
Materials and Supplies
|
198
|
|
|
180
|
|
|
||
|
Prepayments
|
193
|
|
|
9
|
|
|
||
|
Regulatory Assets
|
276
|
|
|
199
|
|
|
||
|
Other
|
6
|
|
|
6
|
|
|
||
|
Total Current Assets
|
1,850
|
|
|
1,930
|
|
|
||
|
PROPERTY, PLANT AND EQUIPMENT
|
27,562
|
|
|
26,347
|
|
|
||
|
Less: Accumulated Depreciation and Amortization
|
(5,930
|
)
|
|
(5,760
|
)
|
|
||
|
Net Property, Plant and Equipment
|
21,632
|
|
|
20,587
|
|
|
||
|
NONCURRENT ASSETS
|
|
|
|
|
||||
|
Regulatory Assets
|
3,349
|
|
|
3,319
|
|
|
||
|
Long-Term Investments
|
293
|
|
|
299
|
|
|
||
|
Other Special Funds
|
45
|
|
|
43
|
|
|
||
|
Other
|
104
|
|
|
110
|
|
|
||
|
Total Noncurrent Assets
|
3,791
|
|
|
3,771
|
|
|
||
|
TOTAL ASSETS
|
$
|
27,273
|
|
|
$
|
26,288
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
June 30,
2017 |
|
December 31,
2016 |
|
||||
|
LIABILITIES AND CAPITALIZATION
|
|
|||||||
|
CURRENT LIABILITIES
|
|
|
|
|
||||
|
Long-Term Debt Due Within One Year
|
$
|
400
|
|
|
$
|
—
|
|
|
|
Accounts Payable
|
587
|
|
|
718
|
|
|
||
|
Accounts Payable—Affiliated Companies
|
146
|
|
|
260
|
|
|
||
|
Accrued Interest
|
78
|
|
|
76
|
|
|
||
|
Clean Energy Program
|
200
|
|
|
142
|
|
|
||
|
Derivative Contracts
|
—
|
|
|
5
|
|
|
||
|
Obligation to Return Cash Collateral
|
134
|
|
|
132
|
|
|
||
|
Regulatory Liabilities
|
51
|
|
|
88
|
|
|
||
|
Other
|
301
|
|
|
296
|
|
|
||
|
Total Current Liabilities
|
1,897
|
|
|
1,717
|
|
|
||
|
NONCURRENT LIABILITIES
|
|
|
|
|
||||
|
Deferred Income Taxes and ITC
|
6,232
|
|
|
5,873
|
|
|
||
|
OPEB Costs
|
983
|
|
|
1,009
|
|
|
||
|
Accrued Pension Costs
|
223
|
|
|
250
|
|
|
||
|
Regulatory Liabilities
|
99
|
|
|
118
|
|
|
||
|
Clean Energy Program
|
27
|
|
|
—
|
|
|
||
|
Environmental Costs
|
310
|
|
|
332
|
|
|
||
|
Asset Retirement Obligations
|
215
|
|
|
213
|
|
|
||
|
Long-Term Accrued Taxes
|
115
|
|
|
130
|
|
|
||
|
Other
|
112
|
|
|
116
|
|
|
||
|
Total Noncurrent Liabilities
|
8,316
|
|
|
8,041
|
|
|
||
|
COMMITMENTS AND CONTINGENT LIABILITIES (See Note 9)
|
|
|
|
|
|
|
||
|
CAPITALIZATION
|
|
|
|
|
||||
|
LONG-TERM DEBT
|
7,842
|
|
|
7,818
|
|
|
||
|
STOCKHOLDER’S EQUITY
|
|
|
|
|
||||
|
Common Stock; 150 shares authorized; issued and outstanding, 2017 and 2016—132 shares
|
892
|
|
|
892
|
|
|
||
|
Contributed Capital
|
945
|
|
|
945
|
|
|
||
|
Basis Adjustment
|
986
|
|
|
986
|
|
|
||
|
Retained Earnings
|
6,395
|
|
|
5,888
|
|
|
||
|
Accumulated Other Comprehensive Income
|
—
|
|
|
1
|
|
|
||
|
Total Stockholder’s Equity
|
9,218
|
|
|
8,712
|
|
|
||
|
Total Capitalization
|
17,060
|
|
|
16,530
|
|
|
||
|
TOTAL LIABILITIES AND CAPITALIZATION
|
$
|
27,273
|
|
|
$
|
26,288
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
Six Months Ended
|
|
||||||
|
|
June 30,
|
|
||||||
|
|
2017
|
|
2016
|
|
||||
|
CASH FLOWS FROM OPERATING ACTIVITIES
|
|
|
|
|
||||
|
Net Income
|
$
|
507
|
|
|
$
|
441
|
|
|
|
Adjustments to Reconcile Net Income to Net Cash Flows from Operating Activities:
|
|
|
|
|
||||
|
Depreciation and Amortization
|
337
|
|
|
275
|
|
|
||
|
Provision for Deferred Income Taxes and ITC
|
330
|
|
|
290
|
|
|
||
|
Non-Cash Employee Benefit Plan Costs
|
25
|
|
|
36
|
|
|
||
|
Cost of Removal
|
(47
|
)
|
|
(74
|
)
|
|
||
|
Net Change in Other Regulatory Assets and Liabilities
|
(124
|
)
|
|
(125
|
)
|
|
||
|
Net Change in Certain Current Assets and Liabilities:
|
|
|
|
|
||||
|
Accounts Receivable and Unbilled Revenues
|
108
|
|
|
50
|
|
|
||
|
Materials and Supplies
|
(15
|
)
|
|
(14
|
)
|
|
||
|
Prepayments
|
(184
|
)
|
|
(165
|
)
|
|
||
|
Accounts Payable
|
(30
|
)
|
|
(29
|
)
|
|
||
|
Accounts Receivable/Payable—Affiliated Companies, net
|
(72
|
)
|
|
181
|
|
|
||
|
Other Current Assets and Liabilities
|
16
|
|
|
17
|
|
|
||
|
Employee Benefit Plan Funding and Related Payments
|
(42
|
)
|
|
(62
|
)
|
|
||
|
Other
|
(39
|
)
|
|
(13
|
)
|
|
||
|
Net Cash Provided By (Used In) Operating Activities
|
770
|
|
|
808
|
|
|
||
|
CASH FLOWS FROM INVESTING ACTIVITIES
|
|
|
|
|
||||
|
Additions to Property, Plant and Equipment
|
(1,389
|
)
|
|
(1,355
|
)
|
|
||
|
Proceeds from Sales of Available-for-Sale Securities
|
28
|
|
|
12
|
|
|
||
|
Investments in Available-for-Sale Securities
|
(29
|
)
|
|
(13
|
)
|
|
||
|
Solar Loan Investments
|
(3
|
)
|
|
2
|
|
|
||
|
Other
|
5
|
|
|
—
|
|
|
||
|
Net Cash Provided By (Used In) Investing Activities
|
(1,388
|
)
|
|
(1,354
|
)
|
|
||
|
CASH FLOWS FROM FINANCING ACTIVITIES
|
|
|
|
|
||||
|
Net Change in Short-Term Debt
|
—
|
|
|
(153
|
)
|
|
||
|
Issuance of Long-Term Debt
|
425
|
|
|
850
|
|
|
||
|
Redemption of Long-Term Debt
|
—
|
|
|
(171
|
)
|
|
||
|
Other
|
(5
|
)
|
|
(10
|
)
|
|
||
|
Net Cash Provided By (Used In) Financing Activities
|
420
|
|
|
516
|
|
|
||
|
Net Increase (Decrease) In Cash and Cash Equivalents
|
(198
|
)
|
|
(30
|
)
|
|
||
|
Cash and Cash Equivalents at Beginning of Period
|
390
|
|
|
198
|
|
|
||
|
Cash and Cash Equivalents at End of Period
|
$
|
192
|
|
|
$
|
168
|
|
|
|
Supplemental Disclosure of Cash Flow Information:
|
|
|
|
|
||||
|
Income Taxes Paid (Received)
|
$
|
(75
|
)
|
|
$
|
(255
|
)
|
|
|
Interest Paid, Net of Amounts Capitalized
|
$
|
144
|
|
|
$
|
134
|
|
|
|
Accrued Property, Plant and Equipment Expenditures
|
$
|
319
|
|
|
$
|
381
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
Three Months Ended
|
|
Six Months Ended
|
|
||||||||||||
|
|
June 30,
|
|
June 30,
|
|
||||||||||||
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
||||||||
|
OPERATING REVENUES
|
$
|
929
|
|
|
$
|
714
|
|
|
$
|
2,213
|
|
|
$
|
2,027
|
|
|
|
OPERATING EXPENSES
|
|
|
|
|
|
|
|
|
||||||||
|
Energy Costs
|
397
|
|
|
381
|
|
|
1,104
|
|
|
1,019
|
|
|
||||
|
Operation and Maintenance
|
254
|
|
|
265
|
|
|
484
|
|
|
518
|
|
|
||||
|
Depreciation and Amortization
|
465
|
|
|
80
|
|
|
1,115
|
|
|
159
|
|
|
||||
|
Total Operating Expenses
|
1,116
|
|
|
726
|
|
|
2,703
|
|
|
1,696
|
|
|
||||
|
OPERATING INCOME (LOSS)
|
(187
|
)
|
|
(12
|
)
|
|
(490
|
)
|
|
331
|
|
|
||||
|
Income from Equity Method Investments
|
5
|
|
|
4
|
|
|
8
|
|
|
6
|
|
|
||||
|
Other Income
|
46
|
|
|
25
|
|
|
84
|
|
|
51
|
|
|
||||
|
Other Deductions
|
(7
|
)
|
|
(9
|
)
|
|
(14
|
)
|
|
(27
|
)
|
|
||||
|
Other-Than-Temporary Impairments
|
(3
|
)
|
|
(10
|
)
|
|
(4
|
)
|
|
(20
|
)
|
|
||||
|
Interest Expense
|
(13
|
)
|
|
(20
|
)
|
|
(29
|
)
|
|
(42
|
)
|
|
||||
|
INCOME (LOSS) BEFORE INCOME TAXES
|
(159
|
)
|
|
(22
|
)
|
|
(445
|
)
|
|
299
|
|
|
||||
|
Income Tax Benefit (Expense)
|
62
|
|
|
11
|
|
|
178
|
|
|
(118
|
)
|
|
||||
|
NET INCOME (LOSS)
|
$
|
(97
|
)
|
|
$
|
(11
|
)
|
|
$
|
(267
|
)
|
|
$
|
181
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
Three Months Ended
|
|
Six Months Ended
|
|
||||||||||||
|
|
June 30,
|
|
June 30,
|
|
||||||||||||
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
||||||||
|
NET INCOME (LOSS)
|
$
|
(97
|
)
|
|
$
|
(11
|
)
|
|
$
|
(267
|
)
|
|
$
|
181
|
|
|
|
Other Comprehensive Income (Loss), net of tax
|
|
|
|
|
|
|
|
|
||||||||
|
Unrealized Gains (Losses) on Available-for-Sale Securities, net of tax (expense) benefit of $ $(9), $(9), $(27) and $(25) for the three and six months ended 2017 and 2016, respectively
|
10
|
|
|
9
|
|
|
29
|
|
|
25
|
|
|
||||
|
Pension/OPEB adjustment, net of tax (expense) benefit of $(3), $(5), $(7) and $(10) for the three and six months ended 2017 and 2016, respectively
|
5
|
|
|
7
|
|
|
10
|
|
|
14
|
|
|
||||
|
Other Comprehensive Income (Loss), net of tax
|
15
|
|
|
16
|
|
|
39
|
|
|
39
|
|
|
||||
|
COMPREHENSIVE INCOME (LOSS)
|
$
|
(82
|
)
|
|
$
|
5
|
|
|
$
|
(228
|
)
|
|
$
|
220
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
June 30,
2017 |
|
December 31,
2016 |
|
||||
|
ASSETS
|
|
|||||||
|
CURRENT ASSETS
|
|
|
|
|
||||
|
Cash and Cash Equivalents
|
$
|
29
|
|
|
$
|
11
|
|
|
|
Accounts Receivable
|
207
|
|
|
276
|
|
|
||
|
Accounts Receivable—Affiliated Companies
|
139
|
|
|
205
|
|
|
||
|
Short-Term Loan to Affiliate
|
233
|
|
|
87
|
|
|
||
|
Fuel
|
270
|
|
|
326
|
|
|
||
|
Materials and Supplies, net
|
379
|
|
|
381
|
|
|
||
|
Derivative Contracts
|
112
|
|
|
162
|
|
|
||
|
Prepayments
|
10
|
|
|
10
|
|
|
||
|
Other
|
3
|
|
|
2
|
|
|
||
|
Total Current Assets
|
1,382
|
|
|
1,460
|
|
|
||
|
PROPERTY, PLANT AND EQUIPMENT
|
10,881
|
|
|
12,655
|
|
|
||
|
Less: Accumulated Depreciation and Amortization
|
(3,055
|
)
|
|
(4,135
|
)
|
|
||
|
Net Property, Plant and Equipment
|
7,826
|
|
|
8,520
|
|
|
||
|
NONCURRENT ASSETS
|
|
|
|
|
||||
|
NDT Fund
|
1,968
|
|
|
1,859
|
|
|
||
|
Long-Term Investments
|
91
|
|
|
102
|
|
|
||
|
Goodwill
|
16
|
|
|
16
|
|
|
||
|
Other Intangibles
|
120
|
|
|
98
|
|
|
||
|
Other Special Funds
|
55
|
|
|
53
|
|
|
||
|
Derivative Contracts
|
90
|
|
|
24
|
|
|
||
|
Other
|
71
|
|
|
61
|
|
|
||
|
Total Noncurrent Assets
|
2,411
|
|
|
2,213
|
|
|
||
|
TOTAL ASSETS
|
$
|
11,619
|
|
|
$
|
12,193
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
June 30,
2017 |
|
December 31,
2016 |
|
||||
|
LIABILITIES AND MEMBER’S EQUITY
|
|
|||||||
|
CURRENT LIABILITIES
|
|
|
|
|
||||
|
Accounts Payable
|
$
|
536
|
|
|
$
|
539
|
|
|
|
Accounts Payable—Affiliated Companies
|
20
|
|
|
25
|
|
|
||
|
Derivative Contracts
|
8
|
|
|
8
|
|
|
||
|
Accrued Interest
|
20
|
|
|
20
|
|
|
||
|
Other
|
95
|
|
|
88
|
|
|
||
|
Total Current Liabilities
|
679
|
|
|
680
|
|
|
||
|
NONCURRENT LIABILITIES
|
|
|
|
|
||||
|
Deferred Income Taxes and ITC
|
1,979
|
|
|
2,170
|
|
|
||
|
Asset Retirement Obligations
|
526
|
|
|
511
|
|
|
||
|
OPEB Costs
|
256
|
|
|
251
|
|
|
||
|
Derivative Contracts
|
1
|
|
|
3
|
|
|
||
|
Accrued Pension Costs
|
179
|
|
|
191
|
|
|
||
|
Long-Term Accrued Taxes
|
93
|
|
|
77
|
|
|
||
|
Other
|
126
|
|
|
129
|
|
|
||
|
Total Noncurrent Liabilities
|
3,160
|
|
|
3,332
|
|
|
||
|
COMMITMENTS AND CONTINGENT LIABILITIES (See Note 9)
|
|
|
|
|
|
|
||
|
LONG-TERM DEBT
|
2,384
|
|
|
2,382
|
|
|
||
|
MEMBER’S EQUITY
|
|
|
|
|
||||
|
Contributed Capital
|
2,214
|
|
|
2,214
|
|
|
||
|
Basis Adjustment
|
(986
|
)
|
|
(986
|
)
|
|
||
|
Retained Earnings
|
4,340
|
|
|
4,782
|
|
|
||
|
Accumulated Other Comprehensive Loss
|
(172
|
)
|
|
(211
|
)
|
|
||
|
Total Member’s Equity
|
5,396
|
|
|
5,799
|
|
|
||
|
TOTAL LIABILITIES AND MEMBER’S EQUITY
|
$
|
11,619
|
|
|
$
|
12,193
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
Six Months Ended
|
|
||||||
|
|
June 30,
|
|
||||||
|
|
2017
|
|
2016
|
|
||||
|
CASH FLOWS FROM OPERATING ACTIVITIES
|
|
|
|
|
||||
|
Net Income (Loss)
|
$
|
(267
|
)
|
|
$
|
181
|
|
|
|
Adjustments to Reconcile Net Income (Loss) to Net Cash Flows from Operating Activities:
|
|
|
|
|
||||
|
Depreciation and Amortization
|
1,115
|
|
|
159
|
|
|
||
|
Amortization of Nuclear Fuel
|
101
|
|
|
105
|
|
|
||
|
Provision for Deferred Income Taxes and ITC
|
(226
|
)
|
|
37
|
|
|
||
|
Interest Accretion on Asset Retirement Obligation
|
15
|
|
|
13
|
|
|
||
|
Net Realized and Unrealized (Gains) Losses on Energy Contracts and Other Derivatives
|
(42
|
)
|
|
153
|
|
|
||
|
Renewable Energy Credit (REC) Compliance Accrual
|
51
|
|
|
50
|
|
|
||
|
Non-Cash Employee Benefit Plan Costs
|
14
|
|
|
19
|
|
|
||
|
Net Realized (Gains) Losses and (Income) Expense from NDT Fund
|
(58
|
)
|
|
(2
|
)
|
|
||
|
Net Change in Certain Current Assets and Liabilities:
|
|
|
|
|
||||
|
Fuel, Materials and Supplies
|
58
|
|
|
86
|
|
|
||
|
Margin Deposit
|
59
|
|
|
(46
|
)
|
|
||
|
Accounts Receivable
|
36
|
|
|
(12
|
)
|
|
||
|
Accounts Payable
|
(14
|
)
|
|
(10
|
)
|
|
||
|
Accounts Receivable/Payable—Affiliated Companies, net
|
75
|
|
|
179
|
|
|
||
|
Other Current Assets and Liabilities
|
7
|
|
|
11
|
|
|
||
|
Employee Benefit Plan Funding and Related Payments
|
(4
|
)
|
|
(10
|
)
|
|
||
|
Other
|
12
|
|
|
4
|
|
|
||
|
Net Cash Provided By (Used In) Operating Activities
|
932
|
|
|
917
|
|
|
||
|
CASH FLOWS FROM INVESTING ACTIVITIES
|
|
|
|
|
||||
|
Additions to Property, Plant and Equipment
|
(576
|
)
|
|
(598
|
)
|
|
||
|
Purchase of Emissions Allowances and RECs
|
(29
|
)
|
|
(36
|
)
|
|
||
|
Proceeds from Sales of Available-for-Sale Securities
|
602
|
|
|
346
|
|
|
||
|
Investments in Available-for-Sale Securities
|
(616
|
)
|
|
(359
|
)
|
|
||
|
Short-Term Loan—Affiliated Company, net
|
(146
|
)
|
|
(972
|
)
|
|
||
|
Other
|
30
|
|
|
12
|
|
|
||
|
Net Cash Provided By (Used In) Investing Activities
|
(735
|
)
|
|
(1,607
|
)
|
|
||
|
CASH FLOWS FROM FINANCING ACTIVITIES
|
|
|
|
|
||||
|
Issuance of Long-Term Debt
|
—
|
|
|
700
|
|
|
||
|
Cash Dividend Paid
|
(175
|
)
|
|
—
|
|
|
||
|
Other
|
(4
|
)
|
|
(6
|
)
|
|
||
|
Net Cash Provided By (Used In) Financing Activities
|
(179
|
)
|
|
694
|
|
|
||
|
Net Increase (Decrease) in Cash and Cash Equivalents
|
18
|
|
|
4
|
|
|
||
|
Cash and Cash Equivalents at Beginning of Period
|
11
|
|
|
12
|
|
|
||
|
Cash and Cash Equivalents at End of Period
|
$
|
29
|
|
|
$
|
16
|
|
|
|
Supplemental Disclosure of Cash Flow Information:
|
|
|
|
|
||||
|
Income Taxes Paid (Received)
|
$
|
66
|
|
|
$
|
(53
|
)
|
|
|
Interest Paid, Net of Amounts Capitalized
|
$
|
29
|
|
|
$
|
38
|
|
|
|
Accrued Property, Plant and Equipment Expenditures
|
$
|
194
|
|
|
$
|
132
|
|
|
|
|
|
|
|
|
•
|
Public Service Electric and Gas Company (PSE&G)
—which is a public utility engaged principally in the transmission of electricity and distribution of electricity and natural gas in certain areas of New Jersey. PSE&G is subject to regulation by the New Jersey Board of Public Utilities (BPU) and the Federal Energy Regulatory Commission (FERC). PSE&G also invests in solar generation projects and has implemented energy efficiency and demand response programs in New Jersey, which are regulated by the BPU.
|
•
|
PSEG Power LLC (Power)
—which is a multi-regional energy supply company that integrates the operations of its merchant nuclear and fossil generating assets with its power marketing businesses through competitive energy sales in well-developed energy markets and fuel supply functions primarily in the Northeast and Mid-Atlantic United States through its principal direct wholly owned subsidiaries. In addition, Power owns and operates solar generation in various states. Power’s subsidiaries are subject to regulation by FERC, the Nuclear Regulatory Commission (NRC), the Environmental Protection Agency (EPA) and the states in which they operate.
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
As of June 30, 2017
|
|
||||||||||||||
|
|
|
Hope Creek
|
|
Salem
|
|
Support Facilities and Other (A)
|
|
Peach Bottom
|
|
||||||||
|
|
|
Millions
|
|
||||||||||||||
|
Assets
|
|
|
|
|
|
|
|
|
|
||||||||
|
Materials and Supplies Inventory
|
|
$
|
83
|
|
|
$
|
80
|
|
|
$
|
—
|
|
|
$
|
41
|
|
|
|
Nuclear Production, net of Accumulated Depreciation
|
|
453
|
|
|
561
|
|
|
208
|
|
|
758
|
|
|
||||
|
Nuclear Fuel In-Service, net of Accumulated Depreciation
|
|
136
|
|
|
113
|
|
|
—
|
|
|
125
|
|
|
||||
|
Construction Work in Progress (including nuclear fuel)
|
|
168
|
|
|
109
|
|
|
9
|
|
|
31
|
|
|
||||
|
Total Assets
|
|
$
|
840
|
|
|
$
|
863
|
|
|
$
|
217
|
|
|
$
|
955
|
|
|
|
Liability
|
|
|
|
|
|
|
|
|
|
||||||||
|
Asset Retirement Obligation
|
|
$
|
146
|
|
|
$
|
159
|
|
|
$
|
—
|
|
|
$
|
162
|
|
|
|
Total Liabilities
|
|
$
|
146
|
|
|
$
|
159
|
|
|
$
|
—
|
|
|
$
|
162
|
|
|
|
Net Assets
|
|
$
|
694
|
|
|
$
|
704
|
|
|
$
|
217
|
|
|
$
|
793
|
|
|
|
NRC License Renewal Term
|
|
2046
|
|
2036/2040
|
|
|
—
|
|
|
2033/2034
|
|
|
|||||
|
% Owned
|
|
100
|
%
|
|
57
|
%
|
|
—
|
|
|
50
|
%
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
(A)
|
Includes Hope Creek’s and Salem’s shared support facilities and other nuclear development capital.
|
|
|
|
|
|
|
|
||||
|
Outstanding Loans by Class of Customer
|
|
||||||||
|
|
|
As of
|
|
As of
|
|
||||
|
Consumer Loans
|
|
June 30,
2017 |
|
December 31,
2016 |
|
||||
|
|
|
Millions
|
|
||||||
|
Commercial/Industrial
|
|
$
|
167
|
|
|
$
|
164
|
|
|
|
Residential
|
|
11
|
|
|
11
|
|
|
||
|
Total
|
|
$
|
178
|
|
|
$
|
175
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
As of
|
|
As of
|
|
||||
|
|
June 30,
2017 |
|
December 31,
2016 |
|
||||
|
|
Millions
|
|
||||||
|
Lease Receivables (net of Non-Recourse Debt)
|
$
|
559
|
|
|
$
|
629
|
|
|
|
Estimated Residual Value of Leased Assets
|
333
|
|
|
346
|
|
|
||
|
Total Investment in Rental Receivables
|
892
|
|
|
975
|
|
|
||
|
Unearned and Deferred Income
|
(315
|
)
|
|
(326
|
)
|
|
||
|
Gross Investment in Leases
|
577
|
|
|
649
|
|
|
||
|
Deferred Tax Liabilities
|
(619
|
)
|
|
(674
|
)
|
|
||
|
Net Investment in Leases
|
$
|
(42
|
)
|
|
$
|
(25
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
|
Lease Receivables, Net of
Non-Recourse Debt
|
|
||
|
Counterparties’ Credit Rating Standard & Poor’s (S&P) as of June 30, 2017
|
|
|
|
||
|
|
As of June 30, 2017
|
|
|||
|
|
|
Millions
|
|
||
|
AA
|
|
$
|
15
|
|
|
|
BBB+ — BBB-
|
|
317
|
|
|
|
|
BB-
|
|
133
|
|
|
|
|
CC
|
|
94
|
|
|
|
|
Total
|
|
$
|
559
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Asset
|
|
Location
|
|
Gross
Investment
|
|
%
Owned
|
|
Total MW
|
|
Fuel
Type
|
|
Counterparties’
S&P Credit
Ratings
|
|
Counterparty
|
|
||||
|
|
|
|
|
Millions
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Powerton Station Units 5 and 6
|
|
IL
|
|
$
|
134
|
|
|
64
|
%
|
|
1,538
|
|
|
Coal
|
|
BB-
|
|
NRG Energy, Inc.
|
|
|
Joliet Station Units 7 and 8
|
|
IL
|
|
$
|
83
|
|
|
64
|
%
|
|
1,036
|
|
|
Gas
|
|
BB-
|
|
NRG Energy, Inc.
|
|
|
Keystone Station Units 1 and 2
|
|
PA
|
|
$
|
20
|
|
|
17
|
%
|
|
1,711
|
|
|
Coal
|
|
CC (A)
|
|
REMA
|
|
|
Conemaugh Station Units 1 and 2
|
|
PA
|
|
$
|
20
|
|
|
17
|
%
|
|
1,711
|
|
|
Coal
|
|
CC (A)
|
|
REMA
|
|
|
Shawville Station Units 1, 2, 3 and 4
|
|
PA
|
|
$
|
91
|
|
|
100
|
%
|
|
596
|
|
|
Gas
|
|
CC (A)
|
|
REMA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(A)
|
REMA’s parent company, GenOn, and certain of its subsidiaries (which did not include REMA) filed voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy Code. GenOn is currently engaged in a balance sheet restructuring, which will take an undetermined time to complete. On June 16, 2017, Moody’s downgraded the GenOn Corporate Family Rating to D-PD and provided a rating of Caa1 for REMA.
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
As of June 30, 2017
|
|
||||||||||||||
|
|
Cost
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized
Losses
|
|
Fair
Value
|
|
||||||||
|
|
Millions
|
|
||||||||||||||
|
Equity Securities
|
$
|
699
|
|
|
$
|
305
|
|
|
$
|
(5
|
)
|
|
$
|
999
|
|
|
|
Debt Securities
|
|
|
|
|
|
|
|
|
||||||||
|
Government
|
551
|
|
|
10
|
|
|
(4
|
)
|
|
557
|
|
|
||||
|
Corporate
|
356
|
|
|
6
|
|
|
(1
|
)
|
|
361
|
|
|
||||
|
Total Debt Securities
|
907
|
|
|
16
|
|
|
(5
|
)
|
|
918
|
|
|
||||
|
Other Securities
|
51
|
|
|
—
|
|
|
—
|
|
|
51
|
|
|
||||
|
Total NDT Available-for-Sale Securities
|
$
|
1,657
|
|
|
$
|
321
|
|
|
$
|
(10
|
)
|
|
$
|
1,968
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
As of December 31, 2016
|
|
||||||||||||||
|
|
Cost
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized
Losses
|
|
Fair
Value
|
|
||||||||
|
|
Millions
|
|
||||||||||||||
|
Equity Securities
|
$
|
705
|
|
|
$
|
263
|
|
|
$
|
(11
|
)
|
|
$
|
957
|
|
|
|
Debt Securities
|
|
|
|
|
|
|
|
|
||||||||
|
Government
|
518
|
|
|
8
|
|
|
(6
|
)
|
|
520
|
|
|
||||
|
Corporate
|
337
|
|
|
4
|
|
|
(4
|
)
|
|
337
|
|
|
||||
|
Total Debt Securities
|
855
|
|
|
12
|
|
|
(10
|
)
|
|
857
|
|
|
||||
|
Other Securities
|
44
|
|
|
—
|
|
|
—
|
|
|
44
|
|
|
||||
|
Total NDT Available-for-Sale Securities (A)
|
$
|
1,604
|
|
|
$
|
275
|
|
|
$
|
(21
|
)
|
|
$
|
1,858
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
As of
|
|
As of
|
|
||||
|
|
June 30,
2017 |
|
December 31,
2016 |
|
||||
|
|
Millions
|
|
||||||
|
Accounts Receivable
|
$
|
25
|
|
|
$
|
8
|
|
|
|
Accounts Payable
|
$
|
22
|
|
|
$
|
5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
|
As of June 30, 2017
|
|
As of December 31, 2016
|
|
||||||||||||||||||||||||||||
|
|
Less Than 12
Months
|
|
Greater Than 12
Months
|
|
Less Than 12
Months
|
|
Greater Than 12
Months
|
|
||||||||||||||||||||||||
|
|
Fair
Value
|
|
Gross
Unrealized
Losses
|
|
Fair
Value
|
|
Gross
Unrealized
Losses
|
|
Fair
Value
|
|
Gross
Unrealized
Losses
|
|
Fair
Value
|
|
Gross
Unrealized
Losses
|
|
||||||||||||||||
|
|
Millions
|
|
||||||||||||||||||||||||||||||
|
Equity Securities (A)
|
$
|
63
|
|
|
$
|
(5
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
120
|
|
|
$
|
(10
|
)
|
|
$
|
8
|
|
|
$
|
(1
|
)
|
|
|
Debt Securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Government (B)
|
279
|
|
|
(4
|
)
|
|
7
|
|
|
—
|
|
|
276
|
|
|
(6
|
)
|
|
4
|
|
|
—
|
|
|
||||||||
|
Corporate (C)
|
94
|
|
|
(1
|
)
|
|
7
|
|
|
—
|
|
|
139
|
|
|
(3
|
)
|
|
15
|
|
|
(1
|
)
|
|
||||||||
|
Total Debt Securities
|
373
|
|
|
(5
|
)
|
|
14
|
|
|
—
|
|
|
415
|
|
|
(9
|
)
|
|
19
|
|
|
(1
|
)
|
|
||||||||
|
Other Securities
|
51
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
||||||||
|
NDT Available-for-Sale Securities
|
$
|
487
|
|
|
$
|
(10
|
)
|
|
$
|
14
|
|
|
$
|
—
|
|
|
$
|
535
|
|
|
$
|
(19
|
)
|
|
$
|
27
|
|
|
$
|
(2
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(A)
|
Equity Securities—Investments in marketable equity securities within the NDT Fund are primarily in common stocks within a broad range of industries and sectors. The unrealized losses are distributed over a broad range of securities with limited impairment durations. Power does not consider these securities to be other-than-temporarily impaired as of
June 30, 2017
.
|
(B)
|
Debt Securities (Government)—Unrealized losses on Power’s NDT investments in U.S. Treasury obligations and Federal Agency mortgage-backed securities were caused by interest rate changes. These investments are guaranteed by the U.S. government or an agency of the U.S. government. Power also has investments in municipal bonds that are primarily in investment grade securities. It is not expected that these securities will settle for less than their amortized cost. Since Power does not intend to sell these securities nor will it be more-likely-than-not required to sell, Power does not consider these debt securities to be other-than-temporarily impaired as of
June 30, 2017
.
|
(C)
|
Debt Securities (Corporate)—Power’s investments in corporate bonds are primarily in investment grade securities. It is not expected that these securities would settle for less than their amortized cost. Since Power does not intend to sell these securities nor will it be more-likely-than-not required to sell, Power does not consider these debt securities to be other-than-temporarily impaired as of
June 30, 2017
.
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
Three Months Ended
|
|
Six Months Ended
|
|
||||||||||||
|
|
June 30,
|
|
June 30,
|
|
||||||||||||
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
||||||||
|
|
Millions
|
|
||||||||||||||
|
Proceeds from NDT Fund Sales (A)
|
$
|
320
|
|
|
$
|
154
|
|
|
$
|
567
|
|
|
$
|
331
|
|
|
|
Net Realized Gains (Losses) on NDT Fund:
|
|
|
|
|
|
|
|
|
||||||||
|
Gross Realized Gains
|
$
|
32
|
|
|
$
|
10
|
|
|
$
|
53
|
|
|
$
|
25
|
|
|
|
Gross Realized Losses
|
(5
|
)
|
|
(6
|
)
|
|
(9
|
)
|
|
(22
|
)
|
|
||||
|
Net Realized Gains (Losses) on NDT Fund
|
$
|
27
|
|
|
$
|
4
|
|
|
$
|
44
|
|
|
$
|
3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Time Frame
|
|
Fair Value
|
|
||
|
|
|
Millions
|
|
||
|
Less than one year
|
|
$
|
29
|
|
|
|
1 - 5 years
|
|
239
|
|
|
|
|
6 - 10 years
|
|
223
|
|
|
|
|
11 - 15 years
|
|
65
|
|
|
|
|
16 - 20 years
|
|
66
|
|
|
|
|
Over 20 years
|
|
296
|
|
|
|
|
Total NDT Available-for-Sale Debt Securities
|
$
|
918
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
As of June 30, 2017
|
|
||||||||||||||
|
|
Cost
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized
Losses
|
|
Fair
Value
|
|
||||||||
|
|
Millions
|
|
||||||||||||||
|
Equity Securities
|
$
|
22
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
22
|
|
|
|
Debt Securities
|
|
|
|
|
|
|
|
|
||||||||
|
Government
|
85
|
|
|
1
|
|
|
(1
|
)
|
|
85
|
|
|
||||
|
Corporate
|
113
|
|
|
2
|
|
|
—
|
|
|
115
|
|
|
||||
|
Total Debt Securities
|
198
|
|
|
3
|
|
|
(1
|
)
|
|
200
|
|
|
||||
|
Other Securities
|
2
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
||||
|
Total Rabbi Trust Available-for-Sale Securities
|
$
|
222
|
|
|
$
|
3
|
|
|
$
|
(1
|
)
|
|
$
|
224
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
As of December 31, 2016
|
|
||||||||||||||
|
|
Cost
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized
Losses
|
|
Fair
Value
|
|
||||||||
|
|
Millions
|
|
||||||||||||||
|
Equity Securities
|
$
|
11
|
|
|
$
|
11
|
|
|
$
|
—
|
|
|
$
|
22
|
|
|
|
Debt Securities
|
|
|
|
|
|
|
|
|
||||||||
|
Government
|
105
|
|
|
—
|
|
|
(2
|
)
|
|
103
|
|
|
||||
|
Corporate
|
92
|
|
|
1
|
|
|
(2
|
)
|
|
91
|
|
|
||||
|
Total Debt Securities
|
197
|
|
|
1
|
|
|
(4
|
)
|
|
194
|
|
|
||||
|
Other Securities
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
||||
|
Total Rabbi Trust Available-for-Sale Securities
|
$
|
209
|
|
|
$
|
12
|
|
|
$
|
(4
|
)
|
|
$
|
217
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
As of
|
|
As of
|
|
||||
|
|
June 30,
2017 |
|
December 31,
2016 |
|
||||
|
|
Millions
|
|
||||||
|
Accounts Receivable
|
$
|
2
|
|
|
$
|
5
|
|
|
|
Accounts Payable
|
$
|
—
|
|
|
$
|
3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
|
As of June 30, 2017
|
|
As of December 31, 2016
|
|
||||||||||||||||||||||||||||
|
|
Less Than 12
Months
|
|
Greater Than 12
Months
|
|
Less Than 12
Months
|
|
Greater Than 12
Months
|
|
||||||||||||||||||||||||
|
|
Fair
Value
|
|
Gross
Unrealized
Losses
|
|
Fair
Value
|
|
Gross
Unrealized
Losses
|
|
Fair
Value
|
|
Gross
Unrealized
Losses
|
|
Fair
Value
|
|
Gross
Unrealized
Losses
|
|
||||||||||||||||
|
|
Millions
|
|
||||||||||||||||||||||||||||||
|
Equity Securities (A)
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
Debt Securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Government (B)
|
29
|
|
|
(1
|
)
|
|
1
|
|
|
—
|
|
|
60
|
|
|
(2
|
)
|
|
1
|
|
|
—
|
|
|
||||||||
|
Corporate (C)
|
19
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|
46
|
|
|
(2
|
)
|
|
3
|
|
|
—
|
|
|
||||||||
|
Total Debt Securities
|
48
|
|
|
(1
|
)
|
|
4
|
|
|
—
|
|
|
106
|
|
|
(4
|
)
|
|
4
|
|
|
—
|
|
|
||||||||
|
Rabbi Trust Available-for-Sale Securities
|
$
|
48
|
|
|
$
|
(1
|
)
|
|
$
|
4
|
|
|
$
|
—
|
|
|
$
|
106
|
|
|
$
|
(4
|
)
|
|
$
|
4
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(A)
|
Equity Securities—Investments in marketable equity securities within the Rabbi Trust Fund are through a mutual fund which invests primarily in common stocks within a broad range of industries and sectors.
|
(B)
|
Debt Securities (Government)—Unrealized losses on PSEG’s Rabbi Trust investments in U.S. Treasury obligations and Federal Agency mortgage-backed securities were caused by interest rate changes. These investments are guaranteed by the U.S. government or an agency of the U.S. government. PSEG also has investments in municipal bonds that are primarily in investment grade securities. It is not expected that these securities will settle for less than their amortized cost. Since PSEG does not intend to sell these securities nor will it be more-likely-than-not required to sell, PSEG does not consider these debt securities to be other-than-temporarily impaired as of
June 30, 2017
.
|
(C)
|
Debt Securities (Corporate)—PSEG’s investments in corporate bonds are primarily in investment grade securities. It is not expected that these securities would settle for less than their amortized cost. Since PSEG does not intend to sell these securities nor will it be more-likely-than-not required to sell, PSEG does not consider these debt securities to be other-than-temporarily impaired as of
June 30, 2017
.
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
Three Months Ended
|
|
Six Months Ended
|
|
||||||||||||
|
|
June 30,
|
|
June 30,
|
|
||||||||||||
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
||||||||
|
|
Millions
|
|
||||||||||||||
|
Proceeds from Rabbi Trust Sales (A)
|
$
|
93
|
|
|
$
|
36
|
|
|
$
|
144
|
|
|
$
|
61
|
|
|
|
Net Realized Gains (Losses) on Rabbi Trust:
|
|
|
|
|
|
|
|
|
||||||||
|
Gross Realized Gains
|
$
|
2
|
|
|
$
|
2
|
|
|
$
|
17
|
|
|
$
|
3
|
|
|
|
Gross Realized Losses
|
(1
|
)
|
|
(1
|
)
|
|
(4
|
)
|
|
(2
|
)
|
|
||||
|
Net Realized Gains (Losses) on Rabbi Trust
|
$
|
1
|
|
|
$
|
1
|
|
|
$
|
13
|
|
|
$
|
1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Time Frame
|
|
Fair Value
|
|
||
|
|
|
Millions
|
|
||
|
Less than one year
|
|
$
|
1
|
|
|
|
1 - 5 years
|
|
35
|
|
|
|
|
6 - 10 years
|
|
29
|
|
|
|
|
11 - 15 years
|
|
6
|
|
|
|
|
16 - 20 years
|
|
18
|
|
|
|
|
Over 20 years
|
|
111
|
|
|
|
|
Total Rabbi Trust Available-for-Sale Debt Securities
|
$
|
200
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
As of
|
|
As of
|
|
||||
|
|
June 30,
2017 |
|
December 31,
2016 |
|
||||
|
|
Millions
|
|
||||||
|
PSE&G
|
$
|
45
|
|
|
$
|
43
|
|
|
|
Power
|
55
|
|
|
53
|
|
|
||
|
Other
|
124
|
|
|
121
|
|
|
||
|
Total Rabbi Trust Available-for-Sale Securities
|
$
|
224
|
|
|
$
|
217
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
|
Pension Benefits
|
|
OPEB
|
|
Pension Benefits
|
|
OPEB
|
|
||||||||||||||||||||||||
|
|
Three Months Ended
|
|
Three Months Ended
|
|
Six Months Ended
|
|
Six Months Ended
|
|
||||||||||||||||||||||||
|
|
June 30,
|
|
June 30,
|
|
June 30,
|
|
June 30,
|
|
||||||||||||||||||||||||
|
|
2017
|
|
|
2016
|
|
2017
|
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
||||||||||||||
|
|
Millions
|
|
||||||||||||||||||||||||||||||
|
Components of Net Periodic Benefit Costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Service Cost
|
$
|
28
|
|
|
$
|
27
|
|
|
$
|
4
|
|
|
$
|
4
|
|
|
$
|
57
|
|
|
$
|
54
|
|
|
$
|
8
|
|
|
$
|
8
|
|
|
|
Interest Cost
|
51
|
|
|
51
|
|
|
16
|
|
|
14
|
|
|
102
|
|
|
101
|
|
|
32
|
|
|
29
|
|
|
||||||||
|
Expected Return on Plan Assets
|
(99
|
)
|
|
(99
|
)
|
|
(9
|
)
|
|
(7
|
)
|
|
(197
|
)
|
|
(197
|
)
|
|
(17
|
)
|
|
(15
|
)
|
|
||||||||
|
Amortization of Net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Prior Service Cost (Credit)
|
(4
|
)
|
|
(5
|
)
|
|
(2
|
)
|
|
(4
|
)
|
|
(9
|
)
|
|
(9
|
)
|
|
(5
|
)
|
|
(7
|
)
|
|
||||||||
|
Actuarial Loss
|
25
|
|
|
40
|
|
|
12
|
|
|
10
|
|
|
49
|
|
|
79
|
|
|
25
|
|
|
20
|
|
|
||||||||
|
Total Benefit Costs
|
$
|
1
|
|
|
$
|
14
|
|
|
$
|
21
|
|
|
$
|
17
|
|
|
$
|
2
|
|
|
$
|
28
|
|
|
$
|
43
|
|
|
$
|
35
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
|
Pension Benefits
|
|
OPEB
|
|
Pension Benefits
|
|
OPEB
|
|
||||||||||||||||||||||||
|
|
Three Months Ended
|
|
Three Months Ended
|
|
Six Months Ended
|
|
Six Months Ended
|
|
||||||||||||||||||||||||
|
|
June 30,
|
|
June 30,
|
|
June 30,
|
|
June 30,
|
|
||||||||||||||||||||||||
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
||||||||||||||||
|
|
Millions
|
|
||||||||||||||||||||||||||||||
|
PSE&G
|
$
|
(1
|
)
|
|
$
|
7
|
|
|
$
|
13
|
|
|
$
|
11
|
|
|
$
|
(2
|
)
|
|
$
|
14
|
|
|
$
|
27
|
|
|
$
|
22
|
|
|
|
Power
|
1
|
|
|
4
|
|
|
6
|
|
|
5
|
|
|
1
|
|
|
8
|
|
|
13
|
|
|
11
|
|
|
||||||||
|
Other
|
1
|
|
|
3
|
|
|
2
|
|
|
1
|
|
|
3
|
|
|
6
|
|
|
3
|
|
|
2
|
|
|
||||||||
|
Total Benefit Costs
|
$
|
1
|
|
|
$
|
14
|
|
|
$
|
21
|
|
|
$
|
17
|
|
|
$
|
2
|
|
|
$
|
28
|
|
|
$
|
43
|
|
|
$
|
35
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
•
|
support current exposure, interest and other costs on sums due and payable in the ordinary course of business, and
|
•
|
obtain credit.
|
•
|
counterparty collateral calls related to commodity contracts, and
|
•
|
certain creditworthiness standards as guarantor under performance guarantees of its subsidiaries.
|
•
|
fully utilize the credit granted to them by every counterparty to whom Power has provided a guarantee, and
|
•
|
the net position of the related contracts would have to be “out-of-the-money” (if the contracts are terminated, Power would owe money to the counterparties).
|
|
|
|
|
|
|
||||
|
|
As of
|
|
As of
|
|
||||
|
|
June 30,
2017 |
|
December 31,
2016 |
|
||||
|
|
Millions
|
|
||||||
|
Face Value of Outstanding Guarantees
|
$
|
1,898
|
|
|
$
|
1,806
|
|
|
|
Exposure under Current Guarantees
|
$
|
137
|
|
|
$
|
139
|
|
|
|
|
|
|
|
|
||||
|
Letters of Credit Margin Posted
|
$
|
142
|
|
|
$
|
157
|
|
|
|
Letters of Credit Margin Received
|
$
|
98
|
|
|
$
|
99
|
|
|
|
|
|
|
|
|
||||
|
Cash Deposited and Received:
|
|
|
|
|
||||
|
Counterparty Cash Margin Deposited
|
$
|
—
|
|
|
$
|
—
|
|
|
|
Counterparty Cash Margin Received
|
$
|
(1
|
)
|
|
$
|
(1
|
)
|
|
|
Net Broker Balance Deposited (Received)
|
$
|
(2
|
)
|
|
$
|
57
|
|
|
|
|
|
|
|
|
||||
|
Additional Amounts Posted:
|
|
|
|
|
||||
|
Other Letters of Credit
|
$
|
61
|
|
|
$
|
51
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
Auction Year
|
|
|
||||||||||
|
|
2014
|
|
2015
|
|
2016
|
|
2017
|
|
|
||||
|
36-Month Terms Ending
|
May 2017
|
|
|
May 2018
|
|
|
May 2019
|
|
|
May 2020
|
|
(A)
|
|
|
Load (MW)
|
2,800
|
|
|
2,900
|
|
|
2,800
|
|
|
2,800
|
|
|
|
|
$ per MWh
|
$97.39
|
|
$99.54
|
|
$96.38
|
|
$90.78
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
(A)
|
Prices set in the
2017
BGS auction year became effective on June 1, 2017 when the 2014 BGS auction agreements expired.
|
|
|
|
|
|
||
|
Fuel Type
|
|
Power's Share of Commitments through 2021
|
|
||
|
|
|
Millions
|
|
||
|
Nuclear Fuel
|
|
|
|
||
|
Uranium
|
|
$
|
301
|
|
|
|
Enrichment
|
|
$
|
340
|
|
|
|
Fabrication
|
|
$
|
184
|
|
|
|
Natural Gas
|
|
$
|
1,040
|
|
|
|
Coal
|
|
$
|
331
|
|
|
|
|
|
|
|
•
|
entered into an agreement for a new term loan maturing
June 2019
. The term loan has a balance of
$700 million
at an interest rate of
1 month LIBOR +
0.80%
and can be terminated at any time without penalty.
|
•
|
issued
$425 million
of
3.00%
Secured Medium-Term Notes, Series L due
May 2027
.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
As of June 30, 2017
|
|
|
|
|
|
||||||||||
|
Company/Facility
|
|
Total
Facility
|
|
Usage
|
|
Available
Liquidity
|
|
Expiration
Date
|
|
Primary Purpose
|
|
||||||
|
|
|
Millions
|
|
|
|
|
|
||||||||||
|
PSEG
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
5-year Credit Facilities (A)
|
|
$
|
1,500
|
|
|
$
|
13
|
|
|
$
|
1,487
|
|
|
Mar 2022
|
|
Commercial Paper Support/Funding/Letters of Credit
|
|
|
Total PSEG
|
|
$
|
1,500
|
|
|
$
|
13
|
|
|
$
|
1,487
|
|
|
|
|
|
|
|
PSE&G
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
5-year Credit Facility (A)
|
|
$
|
600
|
|
|
$
|
15
|
|
|
$
|
585
|
|
|
Mar 2022
|
|
Commercial Paper Support/Funding/Letters of Credit
|
|
|
Total PSE&G
|
|
$
|
600
|
|
|
$
|
15
|
|
|
$
|
585
|
|
|
|
|
|
|
|
Power
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
3-year LC Facilities
|
|
$
|
200
|
|
|
$
|
140
|
|
|
$
|
60
|
|
|
Mar 2020
|
|
Letters of Credit
|
|
|
5-year Credit Facilities
|
|
1,900
|
|
|
50
|
|
|
1,850
|
|
|
Mar 2022
|
|
Funding/Letters of Credit
|
|
|||
|
Total Power
|
|
$
|
2,100
|
|
|
$
|
190
|
|
|
$
|
1,910
|
|
|
|
|
|
|
|
Total
|
|
$
|
4,200
|
|
|
$
|
218
|
|
|
$
|
3,982
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(A)
|
The primary use of PSEG’s and PSE&G’s credit facilities is to support their respective Commercial Paper Programs, under which as of
June 30, 2017
, neither PSEG nor PSE&G had amounts outstanding.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
As of June 30, 2017
|
|
||||||||||||||||||
|
|
|
Power (A)
|
|
PSEG (A)
|
|
Consolidated
|
|
||||||||||||||
|
|
|
Not Designated
|
|
|
|
|
|
Designated as Hedges
|
|
|
|
||||||||||
|
Balance Sheet Location
|
|
Energy-
Related
Contracts
|
|
Netting
(B)
|
|
Total
Power
|
|
Interest
Rate
Swaps
|
|
Total
Derivatives
|
|
||||||||||
|
|
|
Millions
|
|
||||||||||||||||||
|
Derivative Contracts
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Current Assets
|
|
$
|
479
|
|
|
$
|
(367
|
)
|
|
$
|
112
|
|
|
$
|
1
|
|
|
$
|
113
|
|
|
|
Noncurrent Assets
|
|
268
|
|
|
(178
|
)
|
|
90
|
|
|
—
|
|
|
90
|
|
|
|||||
|
Total Mark-to-Market Derivative Assets
|
|
$
|
747
|
|
|
$
|
(545
|
)
|
|
$
|
202
|
|
|
$
|
1
|
|
|
$
|
203
|
|
|
|
Derivative Contracts
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Current Liabilities
|
|
$
|
(373
|
)
|
|
$
|
365
|
|
|
$
|
(8
|
)
|
|
$
|
—
|
|
|
$
|
(8
|
)
|
|
|
Noncurrent Liabilities
|
|
(170
|
)
|
|
169
|
|
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
|
|||||
|
Total Mark-to-Market Derivative (Liabilities)
|
|
$
|
(543
|
)
|
|
$
|
534
|
|
|
$
|
(9
|
)
|
|
$
|
—
|
|
|
$
|
(9
|
)
|
|
|
Total Net Mark-to-Market Derivative Assets (Liabilities)
|
|
$
|
204
|
|
|
$
|
(11
|
)
|
|
$
|
193
|
|
|
$
|
1
|
|
|
$
|
194
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
As of December 31, 2016
|
|
||||||||||||||||||||||
|
|
|
Power (A)
|
|
PSE&G (A)
|
|
PSEG (A)
|
|
Consolidated
|
|
||||||||||||||||
|
|
|
Not Designated
|
|
|
|
|
|
Not Designated
|
|
Designated as Hedges
|
|
|
|
||||||||||||
|
Balance Sheet Location
|
|
Energy-
Related
Contracts
|
|
Netting
(B)
|
|
Total
Power
|
|
Energy-
Related
Contracts
|
|
Interest
Rate
Swaps
|
|
Total
Derivatives
|
|
||||||||||||
|
|
|
Millions
|
|
||||||||||||||||||||||
|
Derivative Contracts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Current Assets
|
|
$
|
435
|
|
|
$
|
(273
|
)
|
|
$
|
162
|
|
|
$
|
—
|
|
|
$
|
1
|
|
|
$
|
163
|
|
|
|
Noncurrent Assets
|
|
122
|
|
|
(98
|
)
|
|
24
|
|
|
—
|
|
|
—
|
|
|
24
|
|
|
||||||
|
Total Mark-to-Market Derivative Assets
|
|
$
|
557
|
|
|
$
|
(371
|
)
|
|
$
|
186
|
|
|
$
|
—
|
|
|
$
|
1
|
|
|
$
|
187
|
|
|
|
Derivative Contracts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Current Liabilities
|
|
$
|
(285
|
)
|
|
$
|
277
|
|
|
$
|
(8
|
)
|
|
$
|
(5
|
)
|
|
$
|
—
|
|
|
$
|
(13
|
)
|
|
|
Noncurrent Liabilities
|
|
(98
|
)
|
|
95
|
|
|
(3
|
)
|
|
—
|
|
|
—
|
|
|
(3
|
)
|
|
||||||
|
Total Mark-to-Market Derivative (Liabilities)
|
|
$
|
(383
|
)
|
|
$
|
372
|
|
|
$
|
(11
|
)
|
|
$
|
(5
|
)
|
|
$
|
—
|
|
|
$
|
(16
|
)
|
|
|
Total Net Mark-to-Market Derivative Assets (Liabilities)
|
|
$
|
174
|
|
|
$
|
1
|
|
|
$
|
175
|
|
|
$
|
(5
|
)
|
|
$
|
1
|
|
|
$
|
171
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(A)
|
Substantially all of Power’s and PSEG’s derivative instruments are contracts subject to master netting agreements. Contracts not subject to master netting or similar agreements are immaterial and did not have any collateral posted or received as of
June 30, 2017
and
December 31, 2016
. PSE&G does not have any derivative contracts subject to master netting or similar agreements.
|
(B)
|
Represents the netting of fair value balances with the same counterparty (where the right of offset exists) and the application of collateral. All cash collateral received or posted that has been allocated to derivative positions, where the right of offset exists, has been offset on the Condensed Consolidated Balance Sheets. As of
June 30, 2017
, net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Derivatives in Cash Flow
Hedging Relationships
|
|
Amount of Pre-Tax
Gain (Loss)
Recognized in AOCI on Derivatives
(Effective Portion)
|
|
Location of
Pre-Tax Gain (Loss) Reclassified from AOCI into Income
|
|
Amount of Pre-Tax
Gain (Loss)
Reclassified from AOCI into Income
(Effective Portion)
|
|
||||||||||||
|
|
Three Months Ended
|
|
|
|
Three Months Ended
|
|
|||||||||||||
|
|
June 30,
|
|
|
|
June 30,
|
|
|||||||||||||
|
|
2017
|
|
2016
|
|
|
|
2017
|
|
2016
|
|
|||||||||
|
|
|
Millions
|
|
|
|
Millions
|
|
||||||||||||
|
PSEG
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Interest Rate Swaps
|
|
$
|
—
|
|
|
$
|
(1
|
)
|
|
Interest Expense
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
Total PSEG
|
|
$
|
—
|
|
|
$
|
(1
|
)
|
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Derivatives in Cash Flow
Hedging Relationships
|
|
Amount of Pre-Tax
Gain (Loss)
Recognized in AOCI on Derivatives
(Effective Portion)
|
|
Location of
Pre-Tax Gain (Loss) Reclassified from AOCI into Income
|
|
Amount of Pre-Tax
Gain (Loss)
Reclassified from AOCI into Income
(Effective Portion)
|
|
||||||||||||
|
|
Six Months Ended
|
|
|
|
Six Months Ended
|
|
|||||||||||||
|
|
June 30,
|
|
|
|
June 30,
|
|
|||||||||||||
|
|
2017
|
|
2016
|
|
|
|
2017
|
|
2016
|
|
|||||||||
|
|
|
Millions
|
|
|
|
Millions
|
|
||||||||||||
|
PSEG
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Interest Rate Swaps
|
|
—
|
|
|
2
|
|
|
Interest Expense
|
|
—
|
|
|
—
|
|
|
||||
|
Total PSEG
|
|
$
|
—
|
|
|
$
|
2
|
|
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Accumulated Other Comprehensive Income
|
|
Pre-Tax
|
|
After-Tax
|
|
||||
|
|
|
Millions
|
|
||||||
|
Balance as of December 31, 2015
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
Gain Recognized in AOCI
|
|
3
|
|
|
2
|
|
|
||
|
Less: Gain Reclassified into Income
|
|
—
|
|
|
—
|
|
|
||
|
Balance as of December 31, 2016
|
|
$
|
3
|
|
|
$
|
2
|
|
|
|
Gain Recognized in AOCI
|
|
—
|
|
|
—
|
|
|
||
|
Less: Gain Reclassified into Income
|
|
—
|
|
|
—
|
|
|
||
|
Balance as of June 30, 2017
|
|
$
|
3
|
|
|
$
|
2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Derivatives Not Designated as Hedges
|
|
Location of Pre-Tax
Gain (Loss)
Recognized in Income
on Derivatives
|
|
Pre-Tax Gain (Loss) Recognized in Income on Derivatives
|
|
Pre-Tax Gain (Loss) Recognized in Income on Derivatives
|
|
||||||||||||
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
||||||||||||
|
|
|
|
|
June 30,
|
|
June 30,
|
|
||||||||||||
|
|
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
||||||||
|
|
|
|
|
Millions
|
|
||||||||||||||
|
PSEG and Power
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Energy-Related Contracts
|
|
Operating Revenues
|
|
$
|
113
|
|
|
$
|
(86
|
)
|
|
$
|
196
|
|
|
$
|
130
|
|
|
|
Energy-Related Contracts
|
|
Energy Costs
|
|
(11
|
)
|
|
6
|
|
|
(16
|
)
|
|
8
|
|
|
||||
|
Total PSEG and Power
|
|
|
|
$
|
102
|
|
|
$
|
(80
|
)
|
|
$
|
180
|
|
|
$
|
138
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Type
|
|
Notional
|
|
Total
|
|
PSEG
|
|
Power
|
|
PSE&G
|
|
||||
|
|
|
|
|
Millions
|
|
||||||||||
|
As of June 30, 2017
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Natural Gas
|
|
Dekatherm (Dth)
|
|
321
|
|
|
—
|
|
|
321
|
|
|
—
|
|
|
|
Electricity
|
|
MWh
|
|
349
|
|
|
—
|
|
|
349
|
|
|
—
|
|
|
|
Financial Transmission Rights (FTRs)
|
|
MWh
|
|
6
|
|
|
—
|
|
|
6
|
|
|
—
|
|
|
|
Interest Rate Swaps
|
|
U.S. Dollars
|
|
500
|
|
|
500
|
|
|
—
|
|
|
—
|
|
|
|
As of December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Natural Gas
|
|
Dth
|
|
357
|
|
|
—
|
|
|
348
|
|
|
9
|
|
|
|
Electricity
|
|
MWh
|
|
323
|
|
|
—
|
|
|
323
|
|
|
—
|
|
|
|
FTRs
|
|
MWh
|
|
9
|
|
|
—
|
|
|
9
|
|
|
—
|
|
|
|
Interest Rate Swaps
|
|
U.S. Dollars
|
|
500
|
|
|
500
|
|
|
—
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Rating
|
|
Current
Exposure
|
|
Collateral Held
|
|
Net
Exposure
|
|
Number of
Counterparties
>10%
|
|
Net Exposure of
Counterparties
>10%
|
|
|
|||||||||
|
|
|
Millions
|
|
|
|
Millions
|
|
|
|||||||||||||
|
Investment Grade
|
|
$
|
420
|
|
|
$
|
92
|
|
|
$
|
328
|
|
|
1
|
|
|
$
|
130
|
|
(A)
|
|
|
Non-Investment Grade
|
|
9
|
|
|
—
|
|
|
9
|
|
|
—
|
|
|
—
|
|
|
|
||||
|
Total
|
|
$
|
429
|
|
|
$
|
92
|
|
|
$
|
337
|
|
|
1
|
|
|
$
|
130
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(A)
|
Represents net exposure of
$130 million
with PSE&G.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
Recurring Fair Value Measurements as of June 30, 2017
|
|
||||||||||||||||||
|
Description
|
|
Total
|
|
Netting (E)
|
|
Quoted Market Prices for Identical Assets
(Level 1)
|
|
Significant Other Observable Inputs (Level 2)
|
|
Significant Unobservable Inputs (Level 3)
|
|
||||||||||
|
|
|
Millions
|
|
||||||||||||||||||
|
PSEG
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Cash Equivalents (A)
|
|
$
|
367
|
|
|
$
|
—
|
|
|
$
|
367
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
Derivative Contracts:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Energy-Related Contracts (B)
|
|
$
|
202
|
|
|
$
|
(545
|
)
|
|
$
|
9
|
|
|
$
|
732
|
|
|
$
|
6
|
|
|
|
Interest Rate Swaps (C)
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
|
NDT Fund (D)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Equity Securities
|
|
$
|
999
|
|
|
$
|
—
|
|
|
$
|
997
|
|
|
$
|
2
|
|
|
$
|
—
|
|
|
|
Debt Securities—US Treasury
|
|
$
|
227
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
227
|
|
|
$
|
—
|
|
|
|
Debt Securities—Govt Other
|
|
$
|
330
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
330
|
|
|
$
|
—
|
|
|
|
Debt Securities—Corporate
|
|
$
|
361
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
361
|
|
|
$
|
—
|
|
|
|
Other Securities
|
|
$
|
51
|
|
|
$
|
—
|
|
|
$
|
51
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
Rabbi Trust (D)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Equity Securities—Mutual Funds
|
|
$
|
22
|
|
|
$
|
—
|
|
|
$
|
22
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
Debt Securities—US Treasury
|
|
$
|
51
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
51
|
|
|
$
|
—
|
|
|
|
Debt Securities—Govt Other
|
|
$
|
34
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
34
|
|
|
$
|
—
|
|
|
|
Debt Securities—Corporate
|
|
$
|
115
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
115
|
|
|
$
|
—
|
|
|
|
Other Securities
|
|
$
|
2
|
|
|
$
|
—
|
|
|
$
|
2
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Derivative Contracts:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Energy-Related Contracts (B)
|
|
$
|
(9
|
)
|
|
$
|
534
|
|
|
$
|
(6
|
)
|
|
$
|
(537
|
)
|
|
$
|
—
|
|
|
|
Interest Rate Swaps (C)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
PSE&G
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Cash Equivalents (A)
|
|
$
|
169
|
|
|
$
|
—
|
|
|
$
|
169
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
Rabbi Trust (D)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Equity Securities—Mutual Funds
|
|
$
|
5
|
|
|
$
|
—
|
|
|
$
|
5
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
Debt Securities—US Treasury
|
|
$
|
10
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
10
|
|
|
$
|
—
|
|
|
|
Debt Securities—Govt Other
|
|
$
|
7
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
7
|
|
|
$
|
—
|
|
|
|
Debt Securities—Corporate
|
|
$
|
23
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
23
|
|
|
$
|
—
|
|
|
|
Other Securities
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
Power
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Derivative Contracts:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Energy-Related Contracts (B)
|
|
$
|
202
|
|
|
$
|
(545
|
)
|
|
$
|
9
|
|
|
$
|
732
|
|
|
$
|
6
|
|
|
|
NDT Fund (D)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Equity Securities
|
|
$
|
999
|
|
|
$
|
—
|
|
|
$
|
997
|
|
|
$
|
2
|
|
|
$
|
—
|
|
|
|
Debt Securities—US Treasury
|
|
$
|
227
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
227
|
|
|
$
|
—
|
|
|
|
Debt Securities—Govt Other
|
|
$
|
330
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
330
|
|
|
$
|
—
|
|
|
|
Debt Securities—Corporate
|
|
$
|
361
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
361
|
|
|
$
|
—
|
|
|
|
Other Securities
|
|
$
|
51
|
|
|
$
|
—
|
|
|
$
|
51
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
Rabbi Trust (D)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Equity Securities—Mutual Funds
|
|
$
|
5
|
|
|
$
|
—
|
|
|
$
|
5
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
Debt Securities—US Treasury
|
|
$
|
13
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
13
|
|
|
$
|
—
|
|
|
|
Debt Securities—Govt Other
|
|
$
|
8
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
8
|
|
|
$
|
—
|
|
|
|
Debt Securities—Corporate
|
|
$
|
29
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
29
|
|
|
$
|
—
|
|
|
|
Other Securities
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Derivative Contracts:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Energy-Related Contracts (B)
|
|
$
|
(9
|
)
|
|
$
|
534
|
|
|
$
|
(6
|
)
|
|
$
|
(537
|
)
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
Recurring Fair Value Measurements as of December 31, 2016
|
|
||||||||||||||||||
|
Description
|
|
Total
|
|
Netting (E)
|
|
Quoted Market Prices for Identical Assets
(Level 1)
|
|
Significant Other Observable Inputs (Level 2)
|
|
Significant Unobservable Inputs (Level 3)
|
|
||||||||||
|
|
|
Millions
|
|
||||||||||||||||||
|
PSEG
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Cash Equivalents (A)
|
|
$
|
365
|
|
|
$
|
—
|
|
|
$
|
365
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
Derivative Contracts:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Energy-Related Contracts (B)
|
|
$
|
186
|
|
|
$
|
(371
|
)
|
|
$
|
17
|
|
|
$
|
533
|
|
|
$
|
7
|
|
|
|
Interest Rate Swaps (C)
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
|
NDT Fund (D)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Equity Securities
|
|
$
|
957
|
|
|
$
|
—
|
|
|
$
|
954
|
|
|
$
|
3
|
|
|
$
|
—
|
|
|
|
Debt Securities—US Treasury
|
|
$
|
227
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
227
|
|
|
$
|
—
|
|
|
|
Debt Securities—Govt Other
|
|
$
|
293
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
293
|
|
|
$
|
—
|
|
|
|
Debt Securities—Corporate
|
|
$
|
337
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
337
|
|
|
$
|
—
|
|
|
|
Other Securities
|
|
$
|
44
|
|
|
$
|
—
|
|
|
$
|
44
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
Rabbi Trust (D)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Equity Securities—Mutual Funds
|
|
$
|
22
|
|
|
$
|
—
|
|
|
$
|
22
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
Debt Securities—US Treasury
|
|
$
|
37
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
37
|
|
|
$
|
—
|
|
|
|
Debt Securities—Govt Other
|
|
$
|
66
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
66
|
|
|
$
|
—
|
|
|
|
Debt Securities—Corporate
|
|
$
|
91
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
91
|
|
|
$
|
—
|
|
|
|
Other Securities
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Derivative Contracts:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Energy-Related Contracts (B)
|
|
$
|
(16
|
)
|
|
$
|
372
|
|
|
$
|
(18
|
)
|
|
$
|
(364
|
)
|
|
$
|
(6
|
)
|
|
|
PSE&G
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Cash Equivalents (A)
|
|
$
|
365
|
|
|
$
|
—
|
|
|
$
|
365
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
Derivative Contracts:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Energy Related Contracts (B)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
Rabbi Trust (D)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Equity Securities—Mutual Funds
|
|
$
|
5
|
|
|
$
|
—
|
|
|
$
|
5
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
Debt Securities—US Treasury
|
|
$
|
7
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
7
|
|
|
$
|
—
|
|
|
|
Debt Securities—Govt Other
|
|
$
|
13
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
13
|
|
|
$
|
—
|
|
|
|
Debt Securities—Corporate
|
|
$
|
18
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
18
|
|
|
$
|
—
|
|
|
|
Other Securities
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Derivative Contracts:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Energy-Related Contracts (B)
|
|
$
|
(5
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(5
|
)
|
|
|
Power
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Derivative Contracts:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Energy-Related Contracts (B)
|
|
$
|
186
|
|
|
$
|
(371
|
)
|
|
$
|
17
|
|
|
$
|
533
|
|
|
$
|
7
|
|
|
|
NDT Fund (D)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Equity Securities
|
|
$
|
957
|
|
|
$
|
—
|
|
|
$
|
954
|
|
|
$
|
3
|
|
|
$
|
—
|
|
|
|
Debt Securities—US Treasury
|
|
$
|
227
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
227
|
|
|
$
|
—
|
|
|
|
Debt Securities—Govt Other
|
|
$
|
293
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
293
|
|
|
$
|
—
|
|
|
|
Debt Securities—Corporate
|
|
$
|
337
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
337
|
|
|
$
|
—
|
|
|
|
Other Securities
|
|
$
|
44
|
|
|
$
|
—
|
|
|
$
|
44
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
Rabbi Trust (D)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Equity Securities—Mutual Funds
|
|
$
|
5
|
|
|
$
|
—
|
|
|
$
|
5
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
Debt Securities—US Treasury
|
|
$
|
9
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
9
|
|
|
$
|
—
|
|
|
|
Debt Securities—Govt Other
|
|
$
|
16
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
16
|
|
|
$
|
—
|
|
|
|
Debt Securities—Corporate
|
|
$
|
23
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
23
|
|
|
$
|
—
|
|
|
|
Other Securities
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Derivative Contracts:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Energy-Related Contracts (B)
|
|
$
|
(11
|
)
|
|
$
|
372
|
|
|
$
|
(18
|
)
|
|
$
|
(364
|
)
|
|
$
|
(1
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(A)
|
Represents money market mutual funds.
|
(B)
|
Level 1— During 2016 a net fair value of
$1 million
relating to energy-related contracts was transferred from Level 2 into Level 1. These contracts represent natural gas futures contracts executed on NYMEX, and are being valued solely on settled pricing inputs which come directly from the exchange.
|
(C)
|
Interest rate swaps are valued using quoted prices on commonly quoted intervals, which are interpolated for periods different than the quoted intervals, as inputs to a market valuation model. Market inputs can generally be verified and model selection does not involve significant management judgment.
|
(D)
|
The fair value measurement tables exclude an immaterial amount of cash as of
June 30, 2017
and
$1 million
as of
December 31, 2016
, which is part of the NDT Fund. The NDT Fund maintains investments in various equity and fixed income securities classified as “available for sale.” The Rabbi Trust maintains investments in a Russell 3000 index fund and various fixed income securities classified as “available for sale” as of
June 30, 2017
. The Rabbi Trust maintained investments in a S&P 500 index fund and various securities classified as “available for sale” as of December 31, 2016. These securities are generally valued with prices that are either exchange provided (equity securities) or market transactions for comparable securities and/or broker quotes (fixed income securities).
|
(E)
|
Represents the netting of fair value balances with the same counterparty (where the right of offset exists) and the application of collateral. All cash collateral received or posted that has been allocated to derivative positions, where the right of offset exists, has been offset in the Condensed Consolidated Balance Sheets.
As of June 30, 2017
, net cash collateral (received) paid of
$(11) million
was netted against the corresponding net derivative contract positions. Of the
$(11) million
as of June 30, 2017,
$(13) million
of cash collateral was netted against assets, and
$2 million
was netted against liabilities.
As of December 31, 2016
, net cash collateral (received) paid of
$1 million
was netted against the corresponding net derivative contract positions. Of the
$1 million
of cash collateral as of
December 31, 2016
,
$(3) million
was netted against assets, and
$4 million
was netted against liabilities.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
Quantitative Information About Level 3 Fair Value Measurements
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
Significant
|
|
|
|
||||||
|
|
|
|
|
Fair Value as of
|
|
Valuation
|
|
Unobservable
|
|
|
|
||||||
|
Commodity
|
|
Level 3 Position
|
|
June 30, 2017
|
|
Technique(s)
|
|
Input
|
|
Range
|
|
||||||
|
|
|
|
|
Assets
|
|
(Liabilities)
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
Millions
|
|
|
|
|
|
|
|
||||||
|
Power
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Electricity
|
|
Electric Load Contracts
|
|
$
|
5
|
|
|
$
|
—
|
|
|
Discounted Cash flow
|
|
Historic Load Variability
|
|
0% to +10%
|
|
|
Gas (A)
|
|
Other
|
|
1
|
|
|
—
|
|
|
|
|
|
|
|
|
||
|
Total Power
|
|
|
|
$
|
6
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
Total PSEG
|
|
|
|
$
|
6
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
Quantitative Information About Level 3 Fair Value Measurements
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
Significant
|
|
|
|
||||||
|
|
|
|
|
Fair Value as of
|
|
Valuation
|
|
Unobservable
|
|
|
|
||||||
|
Commodity
|
|
Level 3 Position
|
|
December 31, 2016
|
|
Technique(s)
|
|
Input
|
|
Range
|
|
||||||
|
|
|
|
|
Assets
|
|
(Liabilities)
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
Millions
|
|
|
|
|
|
|
|
||||||
|
PSE&G
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Gas
|
|
Natural Gas Supply Contract
|
|
$
|
—
|
|
|
$
|
(5
|
)
|
|
Discounted Cash Flow
|
|
Transportation Costs
|
|
$0.60 to $0.80/Dth
|
|
|
Total PSE&G
|
|
|
|
$
|
—
|
|
|
$
|
(5
|
)
|
|
|
|
|
|
|
|
|
Power
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Electricity
|
|
Electric Load Contracts
|
|
$
|
7
|
|
|
$
|
(1
|
)
|
|
Discounted Cash Flow
|
|
Historic Load Variability
|
|
0% to +10%
|
|
|
Gas (A)
|
|
Other
|
|
—
|
|
|
—
|
|
|
|
|
|
|
|
|
||
|
Total Power
|
|
|
|
$
|
7
|
|
|
$
|
(1
|
)
|
|
|
|
|
|
|
|
|
Total PSEG
|
|
|
|
$
|
7
|
|
|
$
|
(6
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(A)
|
Includes gas positions which were immaterial as of
June 30, 2017
and
December 31, 2016
.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
|
|
Three Months Ended June 30, 2017
|
|
|
|
||||||||||||||||||||||||
|
|
|
|
|
Total Gains or (Losses)
Realized/Unrealized
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Description
|
|
Balance as of April 1, 2017
|
|
Included in
Income (A)
|
|
Included in
Regulatory Assets/
Liabilities (B)
|
|
Purchases
(Sales)
|
|
Issuances/
Settlements
(C)
|
|
Transfers
In/Out (D)
|
|
Balance as of June 30, 2017
|
|
||||||||||||||
|
|
|
Millions
|
|
|
|
||||||||||||||||||||||||
|
PSEG
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Net Derivative Assets (Liabilities)
|
|
$
|
3
|
|
|
$
|
7
|
|
|
$
|
(1
|
)
|
|
$
|
—
|
|
|
$
|
(3
|
)
|
|
$
|
—
|
|
|
$
|
6
|
|
|
|
PSE&G
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Net Derivative Assets (Liabilities)
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
(1
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
Power
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Net Derivative Assets (Liabilities)
|
|
$
|
2
|
|
|
$
|
7
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(3
|
)
|
|
$
|
—
|
|
|
$
|
6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
|
|
Six Months Ended June 30, 2017
|
|
|
|
||||||||||||||||||||||||
|
|
|
|
|
Total Gains or (Losses)
Realized/Unrealized
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Description
|
|
Balance as of January 1, 2017
|
|
Included in
Income (A)
|
|
Included in
Regulatory Assets/
Liabilities (B)
|
|
Purchases
(Sales)
|
|
Issuances/
Settlements
(C)
|
|
Transfers
In/Out (D)
|
|
Balance as of June 30, 2017
|
|
||||||||||||||
|
|
|
Millions
|
|
|
|
||||||||||||||||||||||||
|
PSEG
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Net Derivative Assets (Liabilities)
|
|
$
|
1
|
|
|
$
|
26
|
|
|
$
|
5
|
|
|
$
|
—
|
|
|
$
|
(25
|
)
|
|
$
|
(1
|
)
|
|
$
|
6
|
|
|
|
PSE&G
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Net Derivative Assets (Liabilities)
|
|
$
|
(5
|
)
|
|
$
|
—
|
|
|
$
|
5
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
Power
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Net Derivative Assets (Liabilities)
|
|
$
|
6
|
|
|
$
|
26
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(25
|
)
|
|
$
|
(1
|
)
|
|
$
|
6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
|
|
Three Months Ended June 30, 2016
|
|
|
|
||||||||||||||||||||||||
|
|
|
|
|
Total Gains or (Losses)
Realized/Unrealized
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Description
|
|
Balance as of April 1, 2016
|
|
Included in
Income (E)
|
|
Included in
Regulatory Assets/
Liabilities (B)
|
|
Purchases
(Sales)
|
|
Issuances/
Settlements
(C)
|
|
Transfers
In/Out
(D)
|
|
Balance as of June 30, 2016
|
|
||||||||||||||
|
|
|
Millions
|
|
|
|
||||||||||||||||||||||||
|
PSEG
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Net Derivative Assets (Liabilities)
|
|
$
|
21
|
|
|
$
|
1
|
|
|
$
|
(12
|
)
|
|
$
|
—
|
|
|
$
|
(5
|
)
|
|
$
|
—
|
|
|
$
|
5
|
|
|
|
PSE&G
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Net Derivative Assets (Liabilities)
|
|
$
|
10
|
|
|
$
|
—
|
|
|
$
|
(12
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(2
|
)
|
|
|
Power
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Net Derivative Assets (Liabilities)
|
|
$
|
11
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(5
|
)
|
|
$
|
—
|
|
|
$
|
7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
|
|
Six Months Ended June 30, 2016
|
|
|
|
||||||||||||||||||||||||
|
|
|
|
|
Total Gains or (Losses)
Realized/Unrealized
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Description
|
|
Balance as of January 1, 2016
|
|
Included in
Income (E)
|
|
Included in
Regulatory Assets/
Liabilities (B)
|
|
Purchases
(Sales)
|
|
Issuances/
Settlements
(C)
|
|
Transfers
In/Out (D)
|
|
Balance as of June 30, 2016
|
|
||||||||||||||
|
|
|
|
|
|
|
||||||||||||||||||||||||
|
PSEG
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Net Derivative Assets (Liabilities)
|
|
$
|
13
|
|
|
$
|
16
|
|
|
$
|
(4
|
)
|
|
$
|
—
|
|
|
$
|
(20
|
)
|
|
$
|
—
|
|
|
$
|
5
|
|
|
|
PSE&G
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Net Derivative Assets (Liabilities)
|
|
$
|
2
|
|
|
$
|
—
|
|
|
$
|
(4
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(2
|
)
|
|
|
Power
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Net Derivative Assets (Liabilities)
|
|
$
|
11
|
|
|
$
|
16
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(20
|
)
|
|
$
|
—
|
|
|
$
|
7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(A)
|
PSEG’s and Power’s gains and losses attributable to changes in net derivative assets and liabilities include
$7 million
and
$26 million
in Operating Income for the
three months
and
six months
ended
June 30, 2017
, respectively. Of the
$7 million
in Operating Income,
$4 million
is unrealized. Of the
$26 million
in Operating Income,
$1 million
is unrealized.
|
(B)
|
Mainly includes gains/losses on PSE&G’s derivative contracts that are not included in either earnings or Accumulated Other Comprehensive Income, as they are deferred as a Regulatory Asset/Liability and are expected to be recovered from/returned to PSE&G’s customers.
|
(C)
|
Represents
$(3) million
and
$(25) million
in settlements for the
three months
and
six months
ended
June 30, 2017
, respectively. Represents
$(5) million
and
$(20) million
in settlements for the
three months
and
six months
ended
June 30, 2016
, respectively.
|
(D)
|
During the
three months
ended
June 30, 2017
there were no transfers in to or out of Level 3. During the
six months
ended
June 30, 2017
,
$(1) million
of net derivatives assets/liabilities were transferred from Level 2 to Level 3. There were no transfers in to or out of Level 3 during
three months
and
six months
ended
June 30, 2016
.
|
(E)
|
PSEG’s and Power’s gains and losses attributable to changes in net derivative assets and liabilities include
$1 million
and
$16 million
in Operating Income for the
three months
and
six months
ended
June 30, 2016
, respectively. Of the
$1 million
in Operating Income,
$(4) million
is unrealized. Of the
$16 million
in Operating Income,
$(4) million
is unrealized.
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
As of
|
|
As of
|
|
||||||||||||
|
|
June 30, 2017
|
|
December 31, 2016
|
|
||||||||||||
|
|
Carrying
Amount
|
|
Fair
Value
|
|
Carrying
Amount
|
|
Fair
Value
|
|
||||||||
|
|
Millions
|
|
||||||||||||||
|
Long-Term Debt:
|
|
|
|
|
|
|
|
|
||||||||
|
PSEG (Parent) (A)
|
$
|
1,895
|
|
|
$
|
1,888
|
|
|
$
|
1,195
|
|
|
$
|
1,185
|
|
|
|
PSE&G (B)
|
8,242
|
|
|
8,900
|
|
|
7,818
|
|
|
8,240
|
|
|
||||
|
Power - Recourse Debt (B)
|
2,384
|
|
|
2,646
|
|
|
2,382
|
|
|
2,578
|
|
|
||||
|
Total Long-Term Debt
|
$
|
12,521
|
|
|
$
|
13,434
|
|
|
$
|
11,395
|
|
|
$
|
12,003
|
|
|
|
|
|
|
|
|
|
|
|
|
(A)
|
As of June 30, 2017, fair value includes a
$700 million
floating rate term loan term loan in addition to the
$500 million
floating rate term loan and net offsets as of December 31, 2016. The fair values of the term loan debt (Level 2 measurement) were considered to be equal to the carrying values because the interest payments are based on LIBOR rates that are reset monthly.
|
(B)
|
Given that most bonds do not trade, the fair value amounts of taxable debt securities (primarily Level 2 measurements) are generally determined by a valuation model that is based on a conventional discounted cash flow methodology and utilizes assumptions of current market pricing curves. In order to incorporate the credit risk into the discount rates, pricing is obtained (i.e. U.S. Treasury rate plus credit spread) based on expected new issue pricing across each of the companies’ respective debt maturity spectrum. The credit spreads of various tenors obtained from this information are added to the appropriate benchmark U.S. Treasury rates in order to determine the current market yields for the various tenors. The yields are then converted into discount rates of various tenors that are used for discounting the respective cash flows of the same tenor for each bond or note.
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Other Income
|
PSE&G
|
|
Power
|
|
Other (A)
|
|
Consolidated
|
|
||||||||
|
|
Millions
|
|
||||||||||||||
|
Three Months Ended June 30, 2017
|
|
|
|
|
|
|
|
|
||||||||
|
NDT Fund Gains, Interest, Dividend and Other Income
|
$
|
—
|
|
|
$
|
45
|
|
|
$
|
—
|
|
|
$
|
45
|
|
|
|
Allowance for Funds Used During Construction
|
14
|
|
|
—
|
|
|
—
|
|
|
14
|
|
|
||||
|
Rabbi Trust Realized Gains, Interest and Dividends
|
1
|
|
|
1
|
|
|
2
|
|
|
$
|
4
|
|
|
|||
|
Solar Loan Interest
|
5
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|
||||
|
Other
|
2
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
||||
|
Total Other Income
|
$
|
22
|
|
|
$
|
46
|
|
|
$
|
2
|
|
|
$
|
70
|
|
|
|
Six Months Ended June 30, 2017
|
|
|
|
|
|
|
|
|
||||||||
|
NDT Fund Gains, Interest, Dividend and Other Income
|
$
|
—
|
|
|
$
|
76
|
|
|
$
|
—
|
|
|
$
|
76
|
|
|
|
Allowance for Funds Used During Construction
|
28
|
|
|
—
|
|
|
—
|
|
|
28
|
|
|
||||
|
Rabbi Trust Realized Gains, Interest and Dividends
|
4
|
|
|
5
|
|
|
11
|
|
|
20
|
|
|
||||
|
Solar Loan Interest
|
10
|
|
|
—
|
|
|
—
|
|
|
10
|
|
|
||||
|
Other
|
5
|
|
|
3
|
|
|
—
|
|
|
8
|
|
|
||||
|
Total Other Income
|
$
|
47
|
|
|
$
|
84
|
|
|
$
|
11
|
|
|
$
|
142
|
|
|
|
Three Months Ended June 30, 2016
|
|
|
|
|
|
|
|
|
||||||||
|
NDT Fund Gains, Interest, Dividend and Other Income
|
$
|
—
|
|
|
$
|
23
|
|
|
$
|
—
|
|
|
$
|
23
|
|
|
|
Allowance for Funds Used During Construction
|
10
|
|
|
—
|
|
|
—
|
|
|
10
|
|
|
||||
|
Rabbi Trust Realized Gains, Interest and Dividends
|
1
|
|
|
1
|
|
|
1
|
|
|
$
|
3
|
|
|
|||
|
Solar Loan Interest
|
5
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|
||||
|
Other
|
3
|
|
|
1
|
|
|
(1
|
)
|
|
3
|
|
|
||||
|
Total Other Income
|
$
|
19
|
|
|
$
|
25
|
|
|
$
|
—
|
|
|
$
|
44
|
|
|
|
Six Months Ended June 30, 2016
|
|
|
|
|
|
|
|
|
||||||||
|
NDT Fund Gains, Interest, Dividend and Other Income
|
$
|
—
|
|
|
$
|
48
|
|
|
$
|
—
|
|
|
$
|
48
|
|
|
|
Allowance for Funds Used During Construction
|
21
|
|
|
—
|
|
|
—
|
|
|
21
|
|
|
||||
|
Rabbi Trust Realized Gains, Interest and Dividends
|
1
|
|
|
2
|
|
|
3
|
|
|
6
|
|
|
||||
|
Solar Loan Interest
|
11
|
|
|
—
|
|
|
—
|
|
|
11
|
|
|
||||
|
Other
|
6
|
|
|
1
|
|
|
(1
|
)
|
|
6
|
|
|
||||
|
Total Other Income
|
$
|
39
|
|
|
$
|
51
|
|
|
$
|
2
|
|
|
$
|
92
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Other Deductions
|
PSE&G
|
|
Power
|
|
Other (A)
|
|
Consolidated
|
|
||||||||
|
|
Millions
|
|
||||||||||||||
|
Three Months Ended June 30, 2017
|
|
|
|
|
|
|
|
|
||||||||
|
NDT Fund Realized Losses and Expenses
|
$
|
—
|
|
|
$
|
6
|
|
|
$
|
—
|
|
|
$
|
6
|
|
|
|
Other
|
1
|
|
|
1
|
|
|
1
|
|
|
3
|
|
|
||||
|
Total Other Deductions
|
$
|
1
|
|
|
$
|
7
|
|
|
$
|
1
|
|
|
$
|
9
|
|
|
|
Six Months Ended June 30, 2017
|
|
|
|
|
|
|
|
|
||||||||
|
NDT Fund Realized Losses and Expenses
|
$
|
—
|
|
|
$
|
13
|
|
|
$
|
—
|
|
|
$
|
13
|
|
|
|
Other
|
2
|
|
|
1
|
|
|
4
|
|
|
7
|
|
|
||||
|
Total Other Deductions
|
$
|
2
|
|
|
$
|
14
|
|
|
$
|
4
|
|
|
$
|
20
|
|
|
|
Three Months Ended June 30, 2016
|
|
|
|
|
|
|
|
|
||||||||
|
NDT Fund Realized Losses and Expenses
|
$
|
—
|
|
|
$
|
8
|
|
|
$
|
—
|
|
|
$
|
8
|
|
|
|
Other
|
1
|
|
|
1
|
|
|
—
|
|
|
2
|
|
|
||||
|
Total Other Deductions
|
$
|
1
|
|
|
$
|
9
|
|
|
$
|
—
|
|
|
$
|
10
|
|
|
|
Six Months Ended June 30, 2016
|
|
|
|
|
|
|
|
|
||||||||
|
NDT Fund Realized Losses and Expenses
|
$
|
—
|
|
|
$
|
26
|
|
|
$
|
—
|
|
|
$
|
26
|
|
|
|
Other
|
2
|
|
|
1
|
|
|
2
|
|
|
5
|
|
|
||||
|
Total Other Deductions
|
$
|
2
|
|
|
$
|
27
|
|
|
$
|
2
|
|
|
$
|
31
|
|
|
|
|
|
|
|
|
|
|
|
|
(A)
|
Other consists of activity at PSEG (as parent company), Energy Holdings, Services, PSEG LI and intercompany eliminations.
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
||||
|
|
June 30,
|
|
June 30,
|
|
||||
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
PSEG
|
35.1%
|
|
32.7%
|
|
28.3%
|
|
36.2%
|
|
|
PSE&G
|
37.2%
|
|
35.4%
|
|
36.7%
|
|
36.1%
|
|
|
Power
|
39.0%
|
|
50.0%
|
|
40.0%
|
|
39.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
PSEG
|
|
Other Comprehensive Income (Loss)
|
|
||||||||||||||
|
|
|
Three Months Ended June 30, 2017
|
|
||||||||||||||
|
Accumulated Other Comprehensive Income (Loss)
|
|
Cash Flow Hedges
|
|
Pension and OPEB Plans
|
|
Available-for-Sale Securities
|
|
Total
|
|
||||||||
|
|
|
Millions
|
|
||||||||||||||
|
Balance as of March 31, 2017
|
|
$
|
2
|
|
|
$
|
(392
|
)
|
|
$
|
148
|
|
|
$
|
(242
|
)
|
|
|
Other Comprehensive Income before Reclassifications
|
|
—
|
|
|
—
|
|
|
23
|
|
|
23
|
|
|
||||
|
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss)
|
|
—
|
|
|
6
|
|
|
(13
|
)
|
|
(7
|
)
|
|
||||
|
Net Current Period Other Comprehensive Income (Loss)
|
|
—
|
|
|
6
|
|
|
10
|
|
|
16
|
|
|
||||
|
Balance as of June 30, 2017
|
|
$
|
2
|
|
|
$
|
(386
|
)
|
|
$
|
158
|
|
|
$
|
(226
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
PSEG
|
|
Other Comprehensive Income (Loss)
|
|
||||||||||||||
|
|
|
Three Months Ended June 30, 2016
|
|
||||||||||||||
|
Accumulated Other Comprehensive Income (Loss)
|
|
Cash Flow Hedges
|
|
Pension and OPEB Plans
|
|
Available-for-Sale Securities
|
|
Total
|
|
||||||||
|
|
|
Millions
|
|
||||||||||||||
|
Balance as of March 31, 2016
|
|
$
|
2
|
|
|
$
|
(378
|
)
|
|
$
|
107
|
|
|
$
|
(269
|
)
|
|
|
Other Comprehensive Income before Reclassifications
|
|
(1
|
)
|
|
—
|
|
|
8
|
|
|
7
|
|
|
||||
|
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss)
|
|
—
|
|
|
8
|
|
|
2
|
|
|
10
|
|
|
||||
|
Net Current Period Other Comprehensive Income (Loss)
|
|
(1
|
)
|
|
8
|
|
|
10
|
|
|
17
|
|
|
||||
|
Balance as of June 30, 2016
|
|
$
|
1
|
|
|
$
|
(370
|
)
|
|
$
|
117
|
|
|
$
|
(252
|
)
|
|
|
|
|
|
|
||||||||||||||
|
PSEG
|
|
Other Comprehensive Income (Loss)
|
|
||||||||||||||
|
|
|
Six Months Ended June 30, 2017
|
|
||||||||||||||
|
Accumulated Other Comprehensive Income (Loss)
|
|
Cash Flow Hedges
|
|
Pension and OPEB Plans
|
|
Available-for-Sale Securities
|
|
Total
|
|
||||||||
|
|
|
Millions
|
|
||||||||||||||
|
Balance as of December 31, 2016
|
|
$
|
2
|
|
|
$
|
(398
|
)
|
|
$
|
133
|
|
|
$
|
(263
|
)
|
|
|
Other Comprehensive Income before Reclassifications
|
|
—
|
|
|
—
|
|
|
53
|
|
|
53
|
|
|
||||
|
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss)
|
|
—
|
|
|
12
|
|
|
(28
|
)
|
|
(16
|
)
|
|
||||
|
Net Current Period Other Comprehensive Income (Loss)
|
|
—
|
|
|
12
|
|
|
25
|
|
|
37
|
|
|
||||
|
Balance as of June 30, 2017
|
|
$
|
2
|
|
|
$
|
(386
|
)
|
|
$
|
158
|
|
|
$
|
(226
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
PSEG
|
|
Other Comprehensive Income (Loss)
|
|
||||||||||||||
|
|
|
Six Months Ended June 30, 2016
|
|
||||||||||||||
|
Accumulated Other Comprehensive Income (Loss)
|
|
Cash Flow Hedges
|
|
Pension and OPEB Plans
|
|
Available-for-Sale Securities
|
|
Total
|
|
||||||||
|
|
|
Millions
|
|
||||||||||||||
|
Balance as of December 31, 2015
|
|
$
|
—
|
|
|
$
|
(386
|
)
|
|
$
|
91
|
|
|
$
|
(295
|
)
|
|
|
Other Comprehensive Income before Reclassifications
|
|
1
|
|
|
—
|
|
|
18
|
|
|
19
|
|
|
||||
|
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss)
|
|
—
|
|
|
16
|
|
|
8
|
|
|
24
|
|
|
||||
|
Net Current Period Other Comprehensive Income (Loss)
|
|
1
|
|
|
16
|
|
|
26
|
|
|
43
|
|
|
||||
|
Balance as of June 30, 2016
|
|
$
|
1
|
|
|
$
|
(370
|
)
|
|
$
|
117
|
|
|
$
|
(252
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Power
|
|
Other Comprehensive Income (Loss)
|
|
||||||||||||||
|
|
|
Three Months Ended June 30, 2017
|
|
||||||||||||||
|
Accumulated Other Comprehensive Income (Loss)
|
|
Cash Flow Hedges
|
|
Pension and OPEB Plans
|
|
Available-for-Sale Securities
|
|
Total
|
|
||||||||
|
|
|
Millions
|
|
||||||||||||||
|
Balance as of March 31, 2017
|
|
$
|
—
|
|
|
$
|
(335
|
)
|
|
$
|
148
|
|
|
$
|
(187
|
)
|
|
|
Other Comprehensive Income before Reclassifications
|
|
—
|
|
|
—
|
|
|
22
|
|
|
22
|
|
|
||||
|
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss)
|
|
—
|
|
|
5
|
|
|
(12
|
)
|
|
(7
|
)
|
|
||||
|
Net Current Period Other Comprehensive Income (Loss)
|
|
—
|
|
|
5
|
|
|
10
|
|
|
15
|
|
|
||||
|
Balance as of June 30, 2017
|
|
$
|
—
|
|
|
$
|
(330
|
)
|
|
$
|
158
|
|
|
$
|
(172
|
)
|
|
|
|
|
|
|
||||||||||||||
|
Power
|
|
Other Comprehensive Income (Loss)
|
|
||||||||||||||
|
|
|
Three Months Ended June 30, 2016
|
|
||||||||||||||
|
Accumulated Other Comprehensive Income (Loss)
|
|
Cash Flow Hedges
|
|
Pension and OPEB Plans
|
|
Available-for-Sale Securities
|
|
Total
|
|
||||||||
|
|
|
Millions
|
|
||||||||||||||
|
Balance as of March 31, 2016
|
|
$
|
—
|
|
|
$
|
(320
|
)
|
|
$
|
103
|
|
|
$
|
(217
|
)
|
|
|
Other Comprehensive Income before Reclassifications
|
|
—
|
|
|
—
|
|
|
6
|
|
|
6
|
|
|
||||
|
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss)
|
|
—
|
|
|
7
|
|
|
3
|
|
|
10
|
|
|
||||
|
Net Current Period Other Comprehensive Income (Loss)
|
|
—
|
|
|
7
|
|
|
9
|
|
|
16
|
|
|
||||
|
Balance as of June 30, 2016
|
|
$
|
—
|
|
|
$
|
(313
|
)
|
|
$
|
112
|
|
|
$
|
(201
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Power
|
|
Other Comprehensive Income (Loss)
|
|
||||||||||||||
|
|
|
Six Months Ended June 30, 2017
|
|
||||||||||||||
|
Accumulated Other Comprehensive Income (Loss)
|
|
Cash Flow Hedges
|
|
Pension and OPEB Plans
|
|
Available-for-Sale Securities
|
|
Total
|
|
||||||||
|
|
|
Millions
|
|
||||||||||||||
|
Balance as of December 31, 2016
|
|
$
|
—
|
|
|
$
|
(340
|
)
|
|
$
|
129
|
|
|
$
|
(211
|
)
|
|
|
Other Comprehensive Income before Reclassifications
|
|
—
|
|
|
—
|
|
|
50
|
|
|
50
|
|
|
||||
|
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss)
|
|
—
|
|
|
10
|
|
|
(21
|
)
|
|
(11
|
)
|
|
||||
|
Net Current Period Other Comprehensive Income (Loss)
|
|
—
|
|
|
10
|
|
|
29
|
|
|
39
|
|
|
||||
|
Balance as of June 30, 2017
|
|
$
|
—
|
|
|
$
|
(330
|
)
|
|
$
|
158
|
|
|
$
|
(172
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Power
|
|
Other Comprehensive Income (Loss)
|
|
||||||||||||||
|
|
|
Six Months Ended June 30, 2016
|
|
||||||||||||||
|
Accumulated Other Comprehensive Income (Loss)
|
|
Cash Flow Hedges
|
|
Pension and OPEB Plans
|
|
Available-for-Sale Securities
|
|
Total
|
|
||||||||
|
|
|
Millions
|
|
||||||||||||||
|
Balance as of December 31, 2015
|
|
$
|
—
|
|
|
$
|
(327
|
)
|
|
$
|
87
|
|
|
$
|
(240
|
)
|
|
|
Other Comprehensive Income before Reclassifications
|
|
—
|
|
|
—
|
|
|
16
|
|
|
16
|
|
|
||||
|
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss)
|
|
—
|
|
|
14
|
|
|
9
|
|
|
23
|
|
|
||||
|
Net Current Period Other Comprehensive Income (Loss)
|
|
—
|
|
|
14
|
|
|
25
|
|
|
39
|
|
|
||||
|
Balance as of June 30, 2016
|
|
$
|
—
|
|
|
$
|
(313
|
)
|
|
$
|
112
|
|
|
$
|
(201
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
PSEG
|
|
|
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) to Income Statement
|
|
||||||||||||||||||||||
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
||||||||||||||||||||
|
Description of Amounts Reclassified from Accumulated Other Comprehensive Income (Loss)
|
|
Location of Pre-Tax Amount In Statement of Operations
|
June 30, 2017
|
|
June 30, 2017
|
|
||||||||||||||||||||
|
|
Pre-Tax Amount
|
|
Tax (Expense) Benefit
|
|
After-Tax Amount
|
|
Pre-Tax Amount
|
|
Tax (Expense) Benefit
|
|
After-Tax Amount
|
|
||||||||||||||
|
|
|
|
Millions
|
|
||||||||||||||||||||||
|
Pension and OPEB Plans
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Amortization of Prior Service (Cost) Credit
|
|
O&M Expense
|
$
|
2
|
|
|
$
|
(1
|
)
|
|
$
|
1
|
|
|
$
|
4
|
|
|
$
|
(2
|
)
|
|
$
|
2
|
|
|
|
Amortization of Actuarial Loss
|
|
O&M Expense
|
(12
|
)
|
|
5
|
|
|
(7
|
)
|
|
(24
|
)
|
|
10
|
|
|
(14
|
)
|
|
||||||
|
Total Pension and OPEB Plans
|
(10
|
)
|
|
4
|
|
|
(6
|
)
|
|
(20
|
)
|
|
8
|
|
|
(12
|
)
|
|
||||||||
|
Available-for-Sale Securities
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Realized Gains
|
|
Other Income
|
34
|
|
|
(17
|
)
|
|
17
|
|
|
70
|
|
|
(34
|
)
|
|
36
|
|
|
||||||
|
Realized Losses
|
|
Other Deductions
|
(6
|
)
|
|
4
|
|
|
(2
|
)
|
|
(13
|
)
|
|
7
|
|
|
(6
|
)
|
|
||||||
|
OTTI
|
|
OTTI
|
(3
|
)
|
|
1
|
|
|
(2
|
)
|
|
(4
|
)
|
|
2
|
|
|
(2
|
)
|
|
||||||
|
Total Available-for-Sale Securities
|
25
|
|
|
(12
|
)
|
|
13
|
|
|
53
|
|
|
(25
|
)
|
|
28
|
|
|
||||||||
|
Total
|
|
|
$
|
15
|
|
|
$
|
(8
|
)
|
|
$
|
7
|
|
|
$
|
33
|
|
|
$
|
(17
|
)
|
|
$
|
16
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Power
|
|
|
|
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) to Income Statement
|
|
||||||||||||||||||||||
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
||||||||||||||||||||
|
Description of Amounts Reclassified from Accumulated Other Comprehensive Income (Loss)
|
|
Location of Pre-Tax Amount In Statement of Operations
|
|
June 30, 2017
|
|
June 30, 2017
|
|
||||||||||||||||||||
|
|
|
Pre-Tax Amount
|
|
Tax (Expense) Benefit
|
|
After-Tax Amount
|
|
Pre-Tax Amount
|
|
Tax (Expense) Benefit
|
|
After-Tax Amount
|
|
||||||||||||||
|
|
|
|
|
Millions
|
|
||||||||||||||||||||||
|
Pension and OPEB Plans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Amortization of Prior Service (Cost) Credit
|
|
O&M Expense
|
|
$
|
2
|
|
|
$
|
(1
|
)
|
|
$
|
1
|
|
|
$
|
4
|
|
|
$
|
(2
|
)
|
|
$
|
2
|
|
|
|
Amortization of Actuarial Loss
|
|
O&M Expense
|
|
(10
|
)
|
|
4
|
|
|
(6
|
)
|
|
(21
|
)
|
|
9
|
|
|
(12
|
)
|
|
||||||
|
Total Pension and OPEB Plans
|
|
(8
|
)
|
|
3
|
|
|
(5
|
)
|
|
(17
|
)
|
|
7
|
|
|
(10
|
)
|
|
||||||||
|
Available-for-Sale Securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Realized Gains
|
|
Other Income
|
|
32
|
|
|
(16
|
)
|
|
16
|
|
|
57
|
|
|
(29
|
)
|
|
28
|
|
|
||||||
|
Realized Losses
|
|
Other Deductions
|
|
(5
|
)
|
|
3
|
|
|
(2
|
)
|
|
(10
|
)
|
|
5
|
|
|
(5
|
)
|
|
||||||
|
OTTI
|
|
OTTI
|
|
(3
|
)
|
|
1
|
|
|
(2
|
)
|
|
(4
|
)
|
|
2
|
|
|
(2
|
)
|
|
||||||
|
Total Available-for-Sale Securities
|
|
24
|
|
|
(12
|
)
|
|
12
|
|
|
43
|
|
|
(22
|
)
|
|
21
|
|
|
||||||||
|
Total
|
|
|
|
$
|
16
|
|
|
$
|
(9
|
)
|
|
$
|
7
|
|
|
$
|
26
|
|
|
$
|
(15
|
)
|
|
$
|
11
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
|
||||||||||||||||||||||||||||
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
||||||||||||||||||||||||
|
|
Basic
|
|
Diluted
|
|
Basic
|
|
Diluted
|
|
Basic
|
|
Diluted
|
|
Basic
|
|
Diluted
|
|
||||||||||||||||
|
EPS Numerator
(Millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Net Income
|
$
|
109
|
|
|
$
|
109
|
|
|
$
|
187
|
|
|
$
|
187
|
|
|
$
|
223
|
|
|
$
|
223
|
|
|
$
|
658
|
|
|
$
|
658
|
|
|
|
EPS Denominator
(Millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Weighted Average Common Shares Outstanding
|
505
|
|
|
505
|
|
|
505
|
|
|
505
|
|
|
505
|
|
|
505
|
|
|
505
|
|
|
505
|
|
|
||||||||
|
Effect of Stock Based Compensation Awards
|
—
|
|
|
2
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
3
|
|
|
||||||||
|
Total Shares
|
505
|
|
|
507
|
|
|
505
|
|
|
508
|
|
|
505
|
|
|
507
|
|
|
505
|
|
|
508
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
EPS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Net Income
|
$
|
0.22
|
|
|
$
|
0.22
|
|
|
$
|
0.37
|
|
|
$
|
0.37
|
|
|
$
|
0.44
|
|
|
$
|
0.44
|
|
|
$
|
1.30
|
|
|
$
|
1.30
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
Three Months Ended
|
|
Six Months Ended
|
|
||||||||||||
|
|
June 30,
|
|
June 30,
|
|
||||||||||||
|
Dividend Payments on Common Stock
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
||||||||
|
Per Share
|
$
|
0.43
|
|
|
$
|
0.41
|
|
|
$
|
0.86
|
|
|
$
|
0.82
|
|
|
|
In Millions
|
$
|
217
|
|
|
$
|
208
|
|
|
$
|
435
|
|
|
$
|
415
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
PSE&G
|
|
Power
|
|
Other (A)
|
|
Eliminations (B)
|
|
Consolidated Total
|
|
||||||||||
|
|
Millions
|
|
||||||||||||||||||
|
Three Months Ended June 30, 2017
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Total Operating Revenues
|
$
|
1,368
|
|
|
$
|
929
|
|
|
$
|
116
|
|
|
$
|
(280
|
)
|
|
$
|
2,133
|
|
|
|
Net Income (Loss)
|
208
|
|
|
(97
|
)
|
|
(2
|
)
|
|
—
|
|
|
109
|
|
|
|||||
|
Gross Additions to Long-Lived Assets
|
641
|
|
|
269
|
|
|
9
|
|
|
—
|
|
|
919
|
|
|
|||||
|
Six Months Ended June 30, 2017
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Operating Revenues
|
$
|
3,180
|
|
|
$
|
2,213
|
|
|
$
|
199
|
|
|
$
|
(867
|
)
|
|
$
|
4,725
|
|
|
|
Net Income (Loss)
|
507
|
|
|
(267
|
)
|
|
(17
|
)
|
|
—
|
|
|
223
|
|
|
|||||
|
Gross Additions to Long-Lived Assets
|
1,389
|
|
|
576
|
|
|
16
|
|
|
—
|
|
|
1,981
|
|
|
|||||
|
Three Months Ended June 30, 2016
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Total Operating Revenues
|
$
|
1,350
|
|
|
$
|
714
|
|
|
$
|
127
|
|
|
$
|
(286
|
)
|
|
$
|
1,905
|
|
|
|
Net Income (Loss)
|
179
|
|
|
(11
|
)
|
|
19
|
|
|
—
|
|
|
187
|
|
|
|||||
|
Gross Additions to Long-Lived Assets
|
631
|
|
|
265
|
|
|
10
|
|
|
—
|
|
|
906
|
|
|
|||||
|
Six Months Ended June 30, 2016
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Operating Revenues
|
$
|
3,062
|
|
|
$
|
2,027
|
|
|
$
|
249
|
|
|
$
|
(817
|
)
|
|
$
|
4,521
|
|
|
|
Net Income (Loss)
|
441
|
|
|
181
|
|
|
36
|
|
|
—
|
|
|
658
|
|
|
|||||
|
Gross Additions to Long-Lived Assets
|
1,355
|
|
|
598
|
|
|
18
|
|
|
—
|
|
|
1,971
|
|
|
|||||
|
As of June 30, 2017
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Total Assets
|
$
|
27,273
|
|
|
$
|
11,619
|
|
|
$
|
2,425
|
|
|
$
|
(793
|
)
|
|
$
|
40,524
|
|
|
|
Investments in Equity Method Subsidiaries
|
$
|
—
|
|
|
$
|
91
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
91
|
|
|
|
As of December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Total Assets
|
$
|
26,288
|
|
|
$
|
12,193
|
|
|
$
|
2,373
|
|
|
$
|
(784
|
)
|
|
$
|
40,070
|
|
|
|
Investments in Equity Method Subsidiaries
|
$
|
—
|
|
|
$
|
102
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
102
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(A)
|
Includes amounts applicable to Energy Holdings and PSEG LI, which are below the quantitative threshold for separate disclosure as reportable segments. Other also includes amounts applicable to PSEG (parent corporation) and Services.
|
(B)
|
Intercompany eliminations relate primarily to intercompany transactions between PSE&G and Power. No gains or losses are recorded on any intercompany transactions; rather, all intercompany transactions are at cost or, in the case of the BGS and BGSS contracts between PSE&G and Power, at rates prescribed by the BPU. For a further discussion of the intercompany transactions between PSE&G and Power, see
Note 18. Related-Party Transactions
.
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
Three Months Ended
|
|
Six Months Ended
|
|
||||||||||||
|
|
June 30,
|
|
June 30,
|
|
||||||||||||
|
Related-Party Transactions
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
||||||||
|
|
Millions
|
|
||||||||||||||
|
Billings from Affiliates:
|
|
|
|
|
|
|
|
|
||||||||
|
Net Billings from Power primarily through BGS and BGSS (A)
|
$
|
296
|
|
|
$
|
297
|
|
|
$
|
895
|
|
|
$
|
842
|
|
|
|
Administrative Billings from Services (B)
|
79
|
|
|
82
|
|
|
144
|
|
|
151
|
|
|
||||
|
Total Billings from Affiliates
|
$
|
375
|
|
|
$
|
379
|
|
|
$
|
1,039
|
|
|
$
|
993
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
As of
|
|
As of
|
|
||||
|
Related-Party Transactions
|
June 30, 2017
|
|
December 31, 2016
|
|
||||
|
|
Millions
|
|
||||||
|
Receivables from PSEG (C)
|
$
|
20
|
|
|
$
|
76
|
|
|
|
Payable to Power (A)
|
$
|
90
|
|
|
$
|
193
|
|
|
|
Payable to Services (B)
|
56
|
|
|
67
|
|
|
||
|
Accounts Payable—Affiliated Companies
|
$
|
146
|
|
|
$
|
260
|
|
|
|
Working Capital Advances to Services (D)
|
$
|
33
|
|
|
$
|
33
|
|
|
|
Long-Term Accrued Taxes Payable
|
$
|
115
|
|
|
$
|
130
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
Three Months Ended
|
|
Six Months Ended
|
|
||||||||||||
|
|
June 30,
|
|
June 30,
|
|
||||||||||||
|
Related-Party Transactions
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
||||||||
|
|
Millions
|
|
||||||||||||||
|
Billings to Affiliates:
|
|
|
|
|
|
|
|
|
||||||||
|
Net Billings to PSE&G primarily through BGS and BGSS (A)
|
$
|
296
|
|
|
$
|
297
|
|
|
$
|
895
|
|
|
$
|
842
|
|
|
|
Billings from Affiliates:
|
|
|
|
|
|
|
|
|
||||||||
|
Administrative Billings from Services (B)
|
$
|
42
|
|
|
$
|
45
|
|
|
$
|
78
|
|
|
$
|
90
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
As of
|
|
As of
|
|
||||
|
Related-Party Transactions
|
June 30, 2017
|
|
December 31, 2016
|
|
||||
|
|
Millions
|
|
||||||
|
Receivables from PSE&G (A)
|
$
|
90
|
|
|
$
|
193
|
|
|
|
Receivables from PSEG (C)
|
49
|
|
|
12
|
|
|
||
|
Accounts Receivable—Affiliated Companies
|
$
|
139
|
|
|
$
|
205
|
|
|
|
Payable to Services (B)
|
$
|
20
|
|
|
$
|
25
|
|
|
|
Accounts Payable—Affiliated Companies
|
$
|
20
|
|
|
$
|
25
|
|
|
|
Short-Term Loan Due (to) from Affiliate (E)
|
$
|
233
|
|
|
$
|
87
|
|
|
|
Working Capital Advances to Services (D)
|
$
|
17
|
|
|
$
|
17
|
|
|
|
Long-Term Accrued Taxes Payable
|
$
|
93
|
|
|
$
|
77
|
|
|
|
|
|
|
|
|
(A)
|
PSE&G has entered into a requirements contract with Power under which Power provides the gas supply services needed to meet PSE&G’s BGSS and other contractual requirements. Power has also entered into contracts to supply energy, capacity and ancillary services to PSE&G through the BGS auction process. In addition, Power and PSE&G provide certain technical services for each other generally at cost in compliance with FERC and BPU affiliate rules.
|
(B)
|
Services provides and bills administrative services to PSE&G and Power at cost. In addition, PSE&G and Power have other payables to Services, including amounts related to certain common costs, such as pension and OPEB costs, which Services pays on behalf of each of the operating companies.
|
(C)
|
PSEG files a consolidated federal income tax return with its affiliated companies. A tax allocation agreement exists between PSEG and each of its affiliated companies. The general operation of these agreements is that the subsidiary company will compute its taxable income on a stand-alone basis. If the result is a net tax liability, such amount shall be paid to PSEG. If there are net operating losses and/or tax credits, the subsidiary shall receive payment for the tax savings from PSEG to the extent that PSEG is able to utilize those benefits.
|
(D)
|
PSE&G and Power have advanced working capital to Services. The amounts are included in Other Noncurrent Assets on PSE&G’s and Power’s Condensed Consolidated Balance Sheets.
|
(E)
|
Power’s short-term loans with PSEG are for working capital and other short-term needs. Interest Income and Interest Expense relating to these short-term funding activities were immaterial.
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
Power
|
|
Guarantor
Subsidiaries
|
|
Other
Subsidiaries
|
|
Consolidating
Adjustments
|
|
Total
|
|
||||||||||
|
|
Millions
|
|
||||||||||||||||||
|
Three Months Ended June 30, 2017
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Operating Revenues
|
$
|
—
|
|
|
$
|
910
|
|
|
$
|
47
|
|
|
$
|
(28
|
)
|
|
$
|
929
|
|
|
|
Operating Expenses
|
(2
|
)
|
|
1,103
|
|
|
43
|
|
|
(28
|
)
|
|
1,116
|
|
|
|||||
|
Operating Income (Loss)
|
2
|
|
|
(193
|
)
|
|
4
|
|
|
—
|
|
|
(187
|
)
|
|
|||||
|
Equity Earnings (Losses) of Subsidiaries
|
(93
|
)
|
|
(4
|
)
|
|
5
|
|
|
97
|
|
|
5
|
|
|
|||||
|
Other Income
|
22
|
|
|
56
|
|
|
2
|
|
|
(34
|
)
|
|
46
|
|
|
|||||
|
Other Deductions
|
—
|
|
|
(7
|
)
|
|
—
|
|
|
—
|
|
|
(7
|
)
|
|
|||||
|
Other-Than-Temporary Impairments
|
—
|
|
|
(3
|
)
|
|
—
|
|
|
—
|
|
|
(3
|
)
|
|
|||||
|
Interest Expense
|
(34
|
)
|
|
(9
|
)
|
|
(4
|
)
|
|
34
|
|
|
(13
|
)
|
|
|||||
|
Income Tax Benefit (Expense)
|
6
|
|
|
60
|
|
|
(4
|
)
|
|
—
|
|
|
62
|
|
|
|||||
|
Net Income (Loss)
|
$
|
(97
|
)
|
|
$
|
(100
|
)
|
|
$
|
3
|
|
|
$
|
97
|
|
|
$
|
(97
|
)
|
|
|
Comprehensive Income (Loss)
|
$
|
(82
|
)
|
|
$
|
(91
|
)
|
|
$
|
3
|
|
|
$
|
88
|
|
|
$
|
(82
|
)
|
|
|
Six Months Ended June 30, 2017
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Operating Revenues
|
$
|
—
|
|
|
$
|
2,180
|
|
|
$
|
99
|
|
|
$
|
(66
|
)
|
|
$
|
2,213
|
|
|
|
Operating Expenses
|
2
|
|
|
2,672
|
|
|
95
|
|
|
(66
|
)
|
|
2,703
|
|
|
|||||
|
Operating Income (Loss)
|
(2
|
)
|
|
(492
|
)
|
|
4
|
|
|
—
|
|
|
(490
|
)
|
|
|||||
|
Equity Earnings (Losses) of Subsidiaries
|
(254
|
)
|
|
(5
|
)
|
|
8
|
|
|
259
|
|
|
8
|
|
|
|||||
|
Other Income
|
47
|
|
|
97
|
|
|
2
|
|
|
(62
|
)
|
|
84
|
|
|
|||||
|
Other Deductions
|
(1
|
)
|
|
(13
|
)
|
|
—
|
|
|
—
|
|
|
(14
|
)
|
|
|||||
|
Other-Than-Temporary Impairments
|
—
|
|
|
(4
|
)
|
|
—
|
|
|
—
|
|
|
(4
|
)
|
|
|||||
|
Interest Expense
|
(64
|
)
|
|
(18
|
)
|
|
(9
|
)
|
|
62
|
|
|
(29
|
)
|
|
|||||
|
Income Tax Benefit (Expense)
|
7
|
|
|
171
|
|
|
—
|
|
|
—
|
|
|
178
|
|
|
|||||
|
Net Income (Loss)
|
$
|
(267
|
)
|
|
$
|
(264
|
)
|
|
$
|
5
|
|
|
$
|
259
|
|
|
$
|
(267
|
)
|
|
|
Comprehensive Income (Loss)
|
$
|
(228
|
)
|
|
$
|
(234
|
)
|
|
$
|
5
|
|
|
$
|
229
|
|
|
$
|
(228
|
)
|
|
|
Six Months Ended June 30, 2017
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Net Cash Provided By (Used In)
Operating Activities
|
$
|
(32
|
)
|
|
$
|
802
|
|
|
$
|
111
|
|
|
$
|
51
|
|
|
$
|
932
|
|
|
|
Net Cash Provided By (Used In)
Investing Activities
|
$
|
683
|
|
|
$
|
178
|
|
|
$
|
(241
|
)
|
|
$
|
(1,355
|
)
|
|
$
|
(735
|
)
|
|
|
Net Cash Provided By (Used In)
Financing Activities
|
$
|
(651
|
)
|
|
$
|
(978
|
)
|
|
$
|
146
|
|
|
$
|
1,304
|
|
|
$
|
(179
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
Power
|
|
Guarantor
Subsidiaries
|
|
Other
Subsidiaries
|
|
Consolidating
Adjustments
|
|
Total
|
|
||||||||||
|
|
Millions
|
|
||||||||||||||||||
|
Three Months Ended June 30, 2016
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Operating Revenues
|
$
|
—
|
|
|
$
|
700
|
|
|
$
|
46
|
|
|
$
|
(32
|
)
|
|
$
|
714
|
|
|
|
Operating Expenses
|
2
|
|
|
716
|
|
|
40
|
|
|
(32
|
)
|
|
726
|
|
|
|||||
|
Operating Income (Loss)
|
(2
|
)
|
|
(16
|
)
|
|
6
|
|
|
—
|
|
|
(12
|
)
|
|
|||||
|
Equity Earnings (Losses) of Subsidiaries
|
(1
|
)
|
|
1
|
|
|
4
|
|
|
—
|
|
|
4
|
|
|
|||||
|
Other Income
|
17
|
|
|
30
|
|
|
—
|
|
|
(22
|
)
|
|
25
|
|
|
|||||
|
Other Deductions
|
—
|
|
|
(9
|
)
|
|
—
|
|
|
—
|
|
|
(9
|
)
|
|
|||||
|
Other-Than-Temporary Impairments
|
—
|
|
|
(10
|
)
|
|
—
|
|
|
—
|
|
|
(10
|
)
|
|
|||||
|
Interest Expense
|
(31
|
)
|
|
(7
|
)
|
|
(4
|
)
|
|
22
|
|
|
(20
|
)
|
|
|||||
|
Income Tax Benefit (Expense)
|
6
|
|
|
3
|
|
|
2
|
|
|
—
|
|
|
11
|
|
|
|||||
|
Net Income (Loss)
|
$
|
(11
|
)
|
|
$
|
(8
|
)
|
|
$
|
8
|
|
|
$
|
—
|
|
|
$
|
(11
|
)
|
|
|
Comprehensive Income (Loss)
|
$
|
5
|
|
|
$
|
1
|
|
|
$
|
8
|
|
|
$
|
(9
|
)
|
|
$
|
5
|
|
|
|
Six Months Ended June 30, 2016
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Operating Revenues
|
$
|
—
|
|
|
$
|
2,002
|
|
|
$
|
88
|
|
|
$
|
(63
|
)
|
|
$
|
2,027
|
|
|
|
Operating Expenses
|
12
|
|
|
1,668
|
|
|
79
|
|
|
(63
|
)
|
|
1,696
|
|
|
|||||
|
Operating Income (Loss)
|
(12
|
)
|
|
334
|
|
|
9
|
|
|
—
|
|
|
331
|
|
|
|||||
|
Equity Earnings (Losses) of Subsidiaries
|
204
|
|
|
—
|
|
|
6
|
|
|
(204
|
)
|
|
6
|
|
|
|||||
|
Other Income
|
34
|
|
|
62
|
|
|
—
|
|
|
(45
|
)
|
|
51
|
|
|
|||||
|
Other Deductions
|
—
|
|
|
(27
|
)
|
|
—
|
|
|
—
|
|
|
(27
|
)
|
|
|||||
|
Other-Than-Temporary Impairments
|
—
|
|
|
(20
|
)
|
|
—
|
|
|
—
|
|
|
(20
|
)
|
|
|||||
|
Interest Expense
|
(61
|
)
|
|
(17
|
)
|
|
(9
|
)
|
|
45
|
|
|
(42
|
)
|
|
|||||
|
Income Tax Benefit (Expense)
|
16
|
|
|
(137
|
)
|
|
3
|
|
|
—
|
|
|
(118
|
)
|
|
|||||
|
Net Income (Loss)
|
$
|
181
|
|
|
$
|
195
|
|
|
$
|
9
|
|
|
$
|
(204
|
)
|
|
$
|
181
|
|
|
|
Comprehensive Income (Loss)
|
$
|
220
|
|
|
$
|
220
|
|
|
$
|
9
|
|
|
$
|
(229
|
)
|
|
$
|
220
|
|
|
|
Six Months Ended June 30, 2016
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Net Cash Provided By (Used In)
Operating Activities
|
$
|
337
|
|
|
$
|
777
|
|
|
$
|
159
|
|
|
$
|
(356
|
)
|
|
$
|
917
|
|
|
|
Net Cash Provided By (Used In)
Investing Activities
|
$
|
(1,287
|
)
|
|
$
|
(504
|
)
|
|
$
|
(395
|
)
|
|
$
|
579
|
|
|
$
|
(1,607
|
)
|
|
|
Net Cash Provided By (Used In)
Financing Activities
|
$
|
951
|
|
|
$
|
(273
|
)
|
|
$
|
239
|
|
|
$
|
(223
|
)
|
|
$
|
694
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
Power
|
|
Guarantor
Subsidiaries
|
|
Other
Subsidiaries
|
|
Consolidating
Adjustments
|
|
Total
|
|
||||||||||
|
|
Millions
|
|
||||||||||||||||||
|
As of June 30, 2017
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Current Assets
|
$
|
4,156
|
|
|
$
|
1,257
|
|
|
$
|
182
|
|
|
$
|
(4,213
|
)
|
|
$
|
1,382
|
|
|
|
Property, Plant and Equipment, net
|
56
|
|
|
5,244
|
|
|
2,526
|
|
|
—
|
|
|
7,826
|
|
|
|||||
|
Investment in Subsidiaries
|
4,015
|
|
|
340
|
|
|
—
|
|
|
(4,355
|
)
|
|
—
|
|
|
|||||
|
Noncurrent Assets
|
184
|
|
|
2,225
|
|
|
119
|
|
|
(117
|
)
|
|
2,411
|
|
|
|||||
|
Total Assets
|
$
|
8,411
|
|
|
$
|
9,066
|
|
|
$
|
2,827
|
|
|
$
|
(8,685
|
)
|
|
$
|
11,619
|
|
|
|
Current Liabilities
|
$
|
88
|
|
|
$
|
3,156
|
|
|
$
|
1,648
|
|
|
$
|
(4,213
|
)
|
|
$
|
679
|
|
|
|
Noncurrent Liabilities
|
543
|
|
|
2,195
|
|
|
539
|
|
|
(117
|
)
|
|
3,160
|
|
|
|||||
|
Long-Term Debt
|
2,384
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,384
|
|
|
|||||
|
Member’s Equity
|
5,396
|
|
|
3,715
|
|
|
640
|
|
|
(4,355
|
)
|
|
5,396
|
|
|
|||||
|
Total Liabilities and Member’s Equity
|
$
|
8,411
|
|
|
$
|
9,066
|
|
|
$
|
2,827
|
|
|
$
|
(8,685
|
)
|
|
$
|
11,619
|
|
|
|
As of December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Current Assets
|
$
|
4,412
|
|
|
$
|
1,593
|
|
|
$
|
152
|
|
|
$
|
(4,697
|
)
|
|
$
|
1,460
|
|
|
|
Property, Plant and Equipment, net
|
55
|
|
|
6,145
|
|
|
2,320
|
|
|
—
|
|
|
8,520
|
|
|
|||||
|
Investment in Subsidiaries
|
4,249
|
|
|
344
|
|
|
—
|
|
|
(4,593
|
)
|
|
—
|
|
|
|||||
|
Noncurrent Assets
|
168
|
|
|
2,016
|
|
|
129
|
|
|
(100
|
)
|
|
2,213
|
|
|
|||||
|
Total Assets
|
$
|
8,884
|
|
|
$
|
10,098
|
|
|
$
|
2,601
|
|
|
$
|
(9,390
|
)
|
|
$
|
12,193
|
|
|
|
Current Liabilities
|
$
|
171
|
|
|
$
|
3,752
|
|
|
$
|
1,454
|
|
|
$
|
(4,697
|
)
|
|
$
|
680
|
|
|
|
Noncurrent Liabilities
|
532
|
|
|
2,398
|
|
|
502
|
|
|
(100
|
)
|
|
3,332
|
|
|
|||||
|
Long-Term Debt
|
2,382
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,382
|
|
|
|||||
|
Member’s Equity
|
5,799
|
|
|
3,948
|
|
|
645
|
|
|
(4,593
|
)
|
|
5,799
|
|
|
|||||
|
Total Liabilities and Member’s Equity
|
$
|
8,884
|
|
|
$
|
10,098
|
|
|
$
|
2,601
|
|
|
$
|
(9,390
|
)
|
|
$
|
12,193
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ITEM 2.
|
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (MD&A)
|
•
|
PSE&G
—which is a public utility engaged principally in the transmission of electricity and distribution of electricity and natural gas in certain areas of New Jersey. PSE&G is subject to regulation by the New Jersey Board of Public Utilities (BPU) and the Federal Energy Regulatory Commission (FERC). PSE&G also invests in solar generation projects and has implemented energy efficiency and demand response programs in New Jersey, which are regulated by the BPU, and
|
•
|
Power
—which is a multi-regional energy supply company that integrates the operations of its merchant nuclear and fossil generating assets with its power marketing businesses through competitive energy sales in well-developed energy markets and fuel supply functions primarily in the Northeast and Mid-Atlantic United States through its principal direct wholly owned subsidiaries. In addition, Power owns and operates solar generation in various states. Power’s subsidiaries are subject to regulation by FERC, the Nuclear Regulatory Commission (NRC), the Environmental Protection Agency (EPA) and the states in which they operate.
|
•
|
i
mproving utility operations through investment in T&D and other infrastructure projects designed to enhance system reliability and resiliency and to meet customer expectations and public policy objectives,
|
•
|
maintaining and expanding a reliable generation fleet with the flexibility to utilize a diverse mix of fuels which allows us to respond to market volatility and capitalize on opportunities as they arise.
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
Three Months Ended
|
|
Six Months Ended
|
|
||||||||||||
|
|
June 30,
|
|
June 30,
|
|
||||||||||||
|
Earnings (Losses)
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
||||||||
|
|
Millions
|
|
||||||||||||||
|
PSE&G
|
$
|
208
|
|
|
$
|
179
|
|
|
$
|
507
|
|
|
$
|
441
|
|
|
|
Power (A)
|
(97
|
)
|
|
(11
|
)
|
|
(267
|
)
|
|
181
|
|
|
||||
|
Other (B)
|
(2
|
)
|
|
19
|
|
|
(17
|
)
|
|
36
|
|
|
||||
|
PSEG Net Income
|
$
|
109
|
|
|
$
|
187
|
|
|
$
|
223
|
|
|
$
|
658
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
PSEG Net Income Per Share (Diluted)
|
$
|
0.22
|
|
|
$
|
0.37
|
|
|
$
|
0.44
|
|
|
$
|
1.30
|
|
|
|
|
|
|
|
|
|
|
|
|
(A)
|
Includes after-tax expenses of
$229 million
and
$563 million
in the
three months
and
six months
ended
June 30, 2017
, respectively, primarily for accelerated depreciation related to the early retirement of Power’s Hudson and Mercer coal/gas generation plants. See Item 1.
Note 3. Early Plant Retirements
for additional information.
|
(B)
|
Other includes after-tax activities at the parent company, PSEG LI, and Energy Holdings as well as intercompany eliminations. Energy Holdings recorded after-tax charges of
$13 million
and
$45 million
related to its investments in NRG REMA, LLC’s leveraged leases in the
three months
and
six months
ended
June 30, 2017
, respectively. See Item 1.
Note 6. Financing Receivables
for additional information.
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
Three Months Ended
|
|
Six Months Ended
|
|
||||||||||||
|
|
June 30,
|
|
June 30,
|
|
||||||||||||
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
||||||||
|
|
Millions, after tax
|
|
||||||||||||||
|
NDT Fund Income (Expense) (A) (B)
|
$
|
14
|
|
|
$
|
(1
|
)
|
|
$
|
22
|
|
|
$
|
(6
|
)
|
|
|
Non-Trading MTM Gains (Losses) (C)
|
$
|
21
|
|
|
$
|
(101
|
)
|
|
$
|
27
|
|
|
$
|
(88
|
)
|
|
|
|
|
|
|
|
|
|
|
|
(A)
|
NDT Fund Income (Expense) includes the realized gains and losses, interest and dividend income and other costs related to the NDT Fund which are recorded in Other Income and Deductions, and impairments on certain NDT securities recorded as Other-Than-Temporary Impairments. Interest accretion expense on Power’s nuclear Asset Retirement Obligation (ARO) is recorded in Operation and Maintenance (O&M) Expense and the depreciation related to the ARO asset is recorded in Depreciation and Amortization (D&A) Expense.
|
(B)
|
Net of tax (expense) benefit of $(16) million, $(1) million, $(25) million and $2 million for the
three
and
six months
ended
June 30, 2017
and
2016
, respectively.
|
(C)
|
Net of tax (expense) benefit of $(15) million $70 million, $(19) million and $61 million for the
three
and
six months
ended
June 30, 2017
and
2016
, respectively.
|
•
|
accelerated depreciation related to the early retirement of our Hudson and Mercer coal/gas generation units at Power (see Item 1.
Note 3. Early Plant Retirements
), and
|
•
|
charges related to leveraged lease investments (see Item 1.
Note 6. Financing Receivables
).
|
•
|
MTM
gains in 2017 as compared to MTM losses in 2016,
|
•
|
higher transmission revenues, and
|
•
|
higher realized gains in the NDT Fund.
|
•
|
our utility continued top decile performance in electric reliability,
|
•
|
total nuclear fleet achieved an average capacity factor of
95%
,
|
•
|
diverse fuel mix and dispatch flexibility allowed us to generate approximately
26
terawatt hours, and
|
•
|
combined cycle fleet produced
seven
terawatt hours at an equivalent availability factor of
92%
.
|
•
|
maintained sufficient liquidity,
|
•
|
maintained solid investment grade credit ratings, and
|
•
|
increased our indicative annual dividend for
2017
to
$1.72
per share.
|
•
|
made additional investments in transmission infrastructure projects,
|
•
|
continued to execute our GSMP, Energy Strong and other existing BPU-approved utility programs, and
|
•
|
continued construction of our Keys and Sewaren 7 generation projects for targeted commercial operation in 2018 and began construction of BH5 for targeted commercial operations in mid-2019.
|
•
|
focus on controlling costs while maintaining safety and reliability and complying with applicable standards and requirements,
|
•
|
successfully manage our energy obligations and re-contract our open supply positions in response to changes in demand,
|
•
|
successfully launch and grow our retail energy business, which complements our existing wholesale energy business,
|
•
|
execute our utility capital investment program, including our Energy Strong program, GSMP and other investments for growth that yield contemporaneous and reasonable risk-adjusted returns, while enhancing the resiliency of our infrastructure and maintaining the reliability of the service we provide to our customers,
|
•
|
effectively manage construction and start-up of our Keys, Sewaren 7, BH5 and other generation projects,
|
•
|
advocate for measures to ensure the implementation by PJM and FERC of market design and transmission planning rules that continue to promote fair and efficient electricity markets,
|
•
|
engage multiple stakeholders, including regulators, government officials, customers and investors, and
|
•
|
successfully operate the LIPA T&D system and manage LIPA’s fuel supply and generation dispatch obligations.
|
•
|
regulatory and political uncertainty, both with regard to future energy policy, design of energy and capacity markets, transmission policy and environmental regulation, as well as with respect to the outcome of any legal, regulatory or other proceeding, settlement, investigation or claim, applicable to us and/or the energy industry,
|
•
|
fair and timely rate relief from the BPU and FERC for recovery of costs and return on investments, including with respect to our distribution base rate case proceeding to be filed in 2017,
|
•
|
the potential for comprehensive tax reform, particularly in light of public statements by the current U.S. administration and key members of Congress,
|
•
|
uncertainty in the national and regional economic performance, continuing customer conservation efforts, changes in energy usage patterns and evolving technologies, which impact customer behaviors and demand,
|
•
|
the potential for continued reductions in demand and sustained lower natural gas and electricity prices, both at market hubs and the locations where we operate,
|
•
|
the impact of lower natural gas prices and increasing environmental compliance costs on the competitiveness of our nuclear and remaining coal-fired generation plants, and the potential for retirement of such plants earlier than their current useful lives,
|
•
|
ensuring timely completion of construction of our T&D, generation and other development projects, including obtaining required permits and regulatory approvals,
|
•
|
maintaining a diverse mix of fuels to mitigate risks associated with fuel price volatility and market demand cycles, and
|
•
|
FERC Staff’s continuing investigation of certain of Power’s New Jersey fossil generating unit bids in the PJM energy market.
|
•
|
the acquisition, construction or disposition of transmission and distribution facilities and/or generation units,
|
•
|
the disposition or reorganization of our merchant generation business or other existing businesses or the acquisition or development of new businesses,
|
•
|
the expansion of our geographic footprint,
|
•
|
continued or expanded participation in solar, demand response and energy efficiency programs, and
|
•
|
investments in capital improvements and additions, including the installation of environmental upgrades and retrofits, improvements to system resiliency, modernizing existing infrastructure and participation in transmission projects through FERC’s “open window” solicitation process.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
|
Three Months Ended
|
|
Increase/
(Decrease)
|
|
Six Months Ended
|
|
Increase/
(Decrease)
|
|
||||||||||||||||||||||
|
|
June 30,
|
|
|
June 30,
|
|
|
||||||||||||||||||||||||
|
|
2017
|
|
2016
|
|
2017 vs. 2016
|
|
2017
|
|
2016
|
|
2017 vs. 2016
|
|
||||||||||||||||||
|
|
Millions
|
|
Millions
|
|
%
|
|
Millions
|
|
Millions
|
|
%
|
|
||||||||||||||||||
|
Operating Revenues
|
$
|
2,133
|
|
|
$
|
1,905
|
|
|
$
|
228
|
|
|
12
|
|
|
$
|
4,725
|
|
|
$
|
4,521
|
|
|
$
|
204
|
|
|
5
|
|
|
|
Energy Costs
|
588
|
|
|
624
|
|
|
(36
|
)
|
|
(6
|
)
|
|
1,462
|
|
|
1,460
|
|
|
2
|
|
|
—
|
|
|
||||||
|
Operation and Maintenance
|
708
|
|
|
710
|
|
|
(2
|
)
|
|
—
|
|
|
1,420
|
|
|
1,439
|
|
|
(19
|
)
|
|
(1
|
)
|
|
||||||
|
Depreciation and Amortization
|
641
|
|
|
224
|
|
|
417
|
|
|
N/A
|
|
|
1,469
|
|
|
448
|
|
|
1,021
|
|
|
N/A
|
|
|
||||||
|
Income from Equity Method Investments
|
5
|
|
|
4
|
|
|
1
|
|
|
25
|
|
|
8
|
|
|
6
|
|
|
2
|
|
|
33
|
|
|
||||||
|
Other Income (Deductions)
|
61
|
|
|
34
|
|
|
27
|
|
|
79
|
|
|
122
|
|
|
61
|
|
|
61
|
|
|
100
|
|
|
||||||
|
Other-Than-Temporary Impairments
|
3
|
|
|
10
|
|
|
(7
|
)
|
|
(70
|
)
|
|
4
|
|
|
20
|
|
|
(16
|
)
|
|
(80
|
)
|
|
||||||
|
Interest Expense
|
91
|
|
|
97
|
|
|
(6
|
)
|
|
(6
|
)
|
|
189
|
|
|
189
|
|
|
—
|
|
|
—
|
|
|
||||||
|
Income Tax Expense
|
59
|
|
|
91
|
|
|
(32
|
)
|
|
(35
|
)
|
|
88
|
|
|
374
|
|
|
(286
|
)
|
|
(76
|
)
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
|
Three Months Ended
|
|
Increase/
(Decrease)
|
|
Six Months Ended
|
|
Increase/
(Decrease)
|
|
||||||||||||||||||||||
|
|
June 30,
|
|
|
June 30,
|
|
|
||||||||||||||||||||||||
|
|
2017
|
|
2016
|
|
2017 vs. 2016
|
|
2017
|
|
2016
|
|
2017 vs. 2016
|
|
||||||||||||||||||
|
|
Millions
|
|
Millions
|
|
%
|
|
Millions
|
|
Millions
|
|
%
|
|
||||||||||||||||||
|
Operating Revenues
|
$
|
1,368
|
|
|
$
|
1,350
|
|
|
$
|
18
|
|
|
1
|
|
|
$
|
3,180
|
|
|
$
|
3,062
|
|
|
$
|
118
|
|
|
4
|
|
|
|
Energy Costs
|
472
|
|
|
529
|
|
|
(57
|
)
|
|
(11
|
)
|
|
1,225
|
|
|
1,258
|
|
|
(33
|
)
|
|
(3
|
)
|
|
||||||
|
Operation and Maintenance
|
351
|
|
|
352
|
|
|
(1
|
)
|
|
—
|
|
|
718
|
|
|
734
|
|
|
(16
|
)
|
|
(2
|
)
|
|
||||||
|
Depreciation and Amortization
|
166
|
|
|
136
|
|
|
30
|
|
|
22
|
|
|
337
|
|
|
275
|
|
|
62
|
|
|
23
|
|
|
||||||
|
Other Income (Deductions)
|
21
|
|
|
18
|
|
|
3
|
|
|
17
|
|
|
45
|
|
|
37
|
|
|
8
|
|
|
22
|
|
|
||||||
|
Interest Expense
|
69
|
|
|
74
|
|
|
(5
|
)
|
|
(7
|
)
|
|
144
|
|
|
142
|
|
|
2
|
|
|
1
|
|
|
||||||
|
Income Tax Expense
|
123
|
|
|
98
|
|
|
25
|
|
|
26
|
|
|
294
|
|
|
249
|
|
|
45
|
|
|
18
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
•
|
Transmission revenues were
$45 million
higher
due to higher revenue requirements calculated through our transmission formula rate, primarily to recover required investments.
|
•
|
Electric distribution revenues
increased
$8 million
due to a
$6 million
increase from the inclusion of Energy Strong in base rates and a
$7 million
increase due to
higher sales volumes
, partially offset by
lower
Green Program Recovery Charges (GPRC) of
$5 million
.
|
•
|
Gas distribution revenues
increased
$1 million
due to
$6 million
in
higher
Weather Normalization Clause (WNC) revenue, a
$2 million
increase from the inclusion of Energy Strong in base rates, and
$1 million
increases in both GSMP collections and GPRC. These increases were almost entirely offset by
lower sales volumes
.
|
•
|
Electric commodity revenues
decreased
$40 million
due primarily to an
$18 million
decrease in BGS revenues due to lower sales volumes and prices,
$18 million
of
lower revenues
from collections of Non-Utility Generation Charges (NGC) and a decrease of
$4 million
due to lower volumes of Non-Utility Generation (NUG) energy sold.
|
•
|
Gas commodity revenues
decreased
$17 million
due to
lower
BGSS sales volumes of $
24 million
partially offset by higher BGSS sales prices of
$7 million
.
|
•
|
Transmission revenues were
$82 million
higher
due to higher revenue requirements calculated through our transmission formula rate, primarily to recover required investments.
|
•
|
Gas distribution revenues
increased
$25 million
due to a
$13 million
increase due to the inclusion of Energy Strong in base rates,
$8 million
in
higher
WNC revenue, a
$6 million
increase due to the GSMP and
higher
GPRC of
$2 million
partially offset by
$4 million
of
lower
delivery volumes.
|
•
|
Electric distribution revenues
increased
$5 million
due to an
$8 million
increase due to the inclusion of Energy Strong in base rates and a
$5 million
increase due to
higher sales volumes
, partially offset by
lower
GPRC of
$8 million
.
|
•
|
Electric commodity revenues
decreased
$90 million
due primarily to
$41 million
of
lower revenues
from collections of NGC, a
$35 million
decrease in BGS revenues due to lower sales prices and volumes and a decrease of
$14 million
due to lower volumes of NUG energy sold.
|
•
|
Gas commodity revenues
increased
$57 million
due primarily to
higher
BGSS sales prices.
|
•
|
$10 million
in distribution corrective and preventative maintenance,
|
•
|
$8 million
in appliance service costs,
|
•
|
$6 million
in gas bad debt and
|
•
|
$4 million
in pension and other postretirement benefit costs, net of capitalized amounts, partially offset by
|
•
|
a
$6 million
increase in transmission maintenance costs and
|
•
|
a
$6 million
net
increase
in operational expenses.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
|
Three Months Ended
|
|
Increase/
(Decrease)
|
|
Six Months Ended
|
|
Increase/
(Decrease)
|
|
||||||||||||||||||||||
|
|
June 30,
|
|
|
June 30,
|
|
|
||||||||||||||||||||||||
|
|
2017
|
|
2016
|
|
|
2017 vs. 2016
|
|
2017
|
|
2016
|
|
2017 vs. 2016
|
|
|||||||||||||||||
|
|
Millions
|
|
Millions
|
|
%
|
|
Millions
|
|
Millions
|
|
%
|
|
||||||||||||||||||
|
Operating Revenues
|
$
|
929
|
|
|
$
|
714
|
|
|
$
|
215
|
|
|
30
|
|
|
$
|
2,213
|
|
|
$
|
2,027
|
|
|
$
|
186
|
|
|
9
|
|
|
|
Energy Costs
|
397
|
|
|
381
|
|
|
16
|
|
|
4
|
|
|
1,104
|
|
|
1,019
|
|
|
85
|
|
|
8
|
|
|
||||||
|
Operation and Maintenance
|
254
|
|
|
265
|
|
|
(11
|
)
|
|
(4
|
)
|
|
484
|
|
|
518
|
|
|
(34
|
)
|
|
(7
|
)
|
|
||||||
|
Depreciation and Amortization
|
465
|
|
|
80
|
|
|
385
|
|
|
N/A
|
|
|
1,115
|
|
|
159
|
|
|
956
|
|
|
N/A
|
|
|
||||||
|
Income from Equity Method Investments
|
5
|
|
|
4
|
|
|
1
|
|
|
25
|
|
|
8
|
|
|
6
|
|
|
2
|
|
|
33
|
|
|
||||||
|
Other Income (Deductions)
|
39
|
|
|
16
|
|
|
23
|
|
|
N/A
|
|
|
70
|
|
|
24
|
|
|
46
|
|
|
N/A
|
|
|
||||||
|
Other-Than-Temporary Impairments
|
3
|
|
|
10
|
|
|
(7
|
)
|
|
(70
|
)
|
|
4
|
|
|
20
|
|
|
(16
|
)
|
|
(80
|
)
|
|
||||||
|
Interest Expense
|
13
|
|
|
20
|
|
|
(7
|
)
|
|
(35
|
)
|
|
29
|
|
|
42
|
|
|
(13
|
)
|
|
(31
|
)
|
|
||||||
|
Income Tax Expense (Benefit)
|
(62
|
)
|
|
(11
|
)
|
|
51
|
|
|
N/A
|
|
|
(178
|
)
|
|
118
|
|
|
N/A
|
|
|
N/A
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
•
|
an increase of $219 million due to MTM gains in 2017 as compared to MTM losses in 2016. Of this amount, $182 million was due to changes in forward power prices and $37 million was due to lower gains on positions reclassified to realized upon settlement this year as compared to gains last year, and
|
•
|
a net increase of $15 million in electricity sold under wholesale load contracts in the New England (NE) region due to higher volumes sold,
|
•
|
partially offset by a decrease of $11 million in electricity sold under our BGS contracts due primarily to lower volumes.
|
•
|
a net decrease of $17 million related to sales to third parties, of which $22 million was due to lower volumes sold, partially offset by $5 million of higher average sales prices,
|
•
|
partially offset by a net increase of $9 million due to MTM gains in 2017 as compared to MTM losses in 2016.
|
•
|
an increase of $20 million due to MTM losses in 2017 as compared to MTM gains in 2016,
|
•
|
an increase of $21 million due primarily to higher natural gas costs reflecting higher average realized prices,
|
•
|
an increase of $8 million in energy purchase volumes in the NE region to serve load obligations, and
|
•
|
a $2 million charge associated with a lower of cost or market coal inventory adjustment at Hudson and Mercer,
|
•
|
partially offset by a net decrease of $19 million primarily due to lower congestion rates coupled with less congestion volumes.
|
•
|
$380 million of accelerated depreciation due to the early retirement of the Hudson and Mercer units,
|
•
|
$4 million of greater depreciation due to the accelerated retirement date at Bridgeport Harbor 3 (BH3), and
|
•
|
$3 million of higher depreciation due to new solar projects.
|
•
|
an increase of $196 million due to MTM gains in 2017 as compared to MTM losses in 2016. Of this amount, $106 million was due to lower gains on positions reclassified to realized upon settlement this year as compared to last year and $90 million due to changes in forward power prices, and
|
•
|
a net increase of $24 million due primarily to higher volumes of electricity sold under wholesale load contracts in the NE region partially offset by lower average prices,
|
•
|
partially offset by a net decrease of $90 million in energy sales in the PJM and NE regions due primarily to lower average realized prices,
|
•
|
a net decrease of $8 million in electricity sold under our BGS contracts of which $21 million was due to lower volumes, partially offset by $13 million of higher average prices, and
|
•
|
a charge of $10 million due to an increase in the FERC accrual related to the PJM bidding matter see Item 1.
Note 9. Commitments and Contingent Liabilities
.
|
•
|
an increase of $45 million in sales under the BGSS contract, of which $37 million was due to higher average sales prices coupled with an $8 million increase in sales volumes due to periods of colder weather in March,
|
•
|
an increase of $24 million related to sales to third parties, of which $48 million was due to higher average sales prices, partially offset by $24 million of lower volumes sold, and
|
•
|
a net increase of $17 million due to MTM gains in 2017 as compared to MTM losses in 2016.
|
•
|
higher fuel costs of $35 million reflecting higher average realized prices for natural gas coupled with the utilization of higher volumes of coal, partially offset by the utilization of lower volumes of gas and oil,
|
•
|
an increase of $18 million due to MTM losses in 2017 as compared to MTM gains in 2016,
|
•
|
an increase of $15 million in energy purchase volumes in the NE region to serve load obligations, and
|
•
|
a $9 million charge associated with a lower of cost or market coal inventory adjustment at Hudson and Mercer,
|
•
|
partially offset by a net decrease of $45 million due primarily to lower congestion costs in PJM due to lower congestion rates coupled with less congestion volumes, partially offset by higher transmission charges due to higher rates.
|
•
|
an increase of $31 million related to sales under the BGSS contract due primarily to higher average gas costs and an increase in volumes sold due to periods of colder weather in March, and
|
•
|
an increase of $22 million related to sales to third parties, of which $44 million was due to higher average gas costs, partially offset by a $22 million decrease in volumes sold.
|
•
|
a $16 million decrease at our fossil plants, due primarily to the retirement of the Hudson and Mercer units and higher planned outage costs in 2016 as compared to 2017,
|
•
|
an $11 million net decrease related to our nuclear plants due primarily to lower labor-related costs and outage costs, and
|
•
|
a $9 million legal accrual for environmental expenses recorded in 2016,
|
•
|
partially offset by $3 million of costs related to seven new solar plants placed into service since June 2016.
|
•
|
$938 million of accelerated depreciation due to the early retirement of the Hudson and Mercer units,
|
•
|
$8 million of greater depreciation due to the accelerated retirement date at BH3,
|
•
|
a $6 million increase due to a higher nuclear asset base, and
|
•
|
$6 million of higher depreciation due to new solar projects.
|
|
|
|
|
|
|
|
|
|
||||||
|
Company/Facility
|
|
As of June 30, 2017
|
|
||||||||||
|
Total
Facility
|
|
Usage
|
|
Available
Liquidity
|
|
||||||||
|
|
|
Millions
|
|
||||||||||
|
PSEG
|
|
$
|
1,500
|
|
|
$
|
13
|
|
|
$
|
1,487
|
|
|
|
PSE&G
|
|
600
|
|
|
15
|
|
|
585
|
|
|
|||
|
Power
|
|
2,100
|
|
|
190
|
|
|
1,910
|
|
|
|||
|
Total
|
|
$
|
4,200
|
|
|
$
|
218
|
|
|
$
|
3,982
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Moody’s (A)
|
|
S&P (B)
|
|
|
PSEG
|
|
|
|
|
|
|
Outlook
|
|
Stable
|
|
Stable
|
|
|
Senior Notes
|
|
Baa1
|
|
BBB
|
|
|
Commercial Paper
|
|
P2
|
|
A2
|
|
|
PSE&G
|
|
|
|
|
|
|
Outlook
|
|
Stable
|
|
Stable
|
|
|
Mortgage Bonds
|
|
Aa3
|
|
A
|
|
|
Commercial Paper
|
|
P1
|
|
A2
|
|
|
Power
|
|
|
|
|
|
|
Outlook
|
|
Stable
|
|
Stable
|
|
|
Senior Notes
|
|
Baa1
|
|
BBB+
|
|
|
|
|
|
|
|
|
(A)
|
Moody’s ratings range from Aaa (highest) to C (lowest) for long-term securities and P1 (highest) to NP (lowest) for short-term securities.
|
(B)
|
S&P ratings range from AAA (highest) to D (lowest) for long-term securities and A1 (highest) to D (lowest) for short-term securities.
|
ITEM 3.
|
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
|
|
|
|
|
|
|
|
||||
|
|
|
MTM VaR
|
|
||||||
|
|
|
Three Months Ended June 30, 2017
|
|
Year Ended December 31, 2016
|
|
||||
|
|
|
Millions
|
|
||||||
|
95% Confidence Level, Loss could exceed VaR one day in 20 days
|
|
|
|
|
|
||||
|
Period End
|
|
$
|
8
|
|
|
$
|
26
|
|
|
|
Average for the Period
|
|
$
|
8
|
|
|
$
|
16
|
|
|
|
High
|
|
$
|
10
|
|
|
$
|
32
|
|
|
|
Low
|
|
$
|
6
|
|
|
$
|
10
|
|
|
|
99.5% Confidence Level, Loss could exceed VaR one day in 200 days
|
|
|
|
|
|
||||
|
Period End
|
|
$
|
13
|
|
|
$
|
40
|
|
|
|
Average for the Period
|
|
$
|
12
|
|
|
$
|
25
|
|
|
|
High
|
|
$
|
16
|
|
|
$
|
51
|
|
|
|
Low
|
|
$
|
9
|
|
|
$
|
16
|
|
|
|
|
|
|
|
|
|
ITEM 4.
|
CONTROLS AND PROCEDURES
|
ITEM 1.
|
LEGAL PROCEEDINGS
|
ITEM 1A.
|
RISK FACTORS
|
ITEM 2.
|
UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
|
|
|
|
|
|
|
|||
|
Three Months Ended June 30, 2017
|
Total Number
of Shares
Purchased
|
|
Average
Price Paid
per Share
|
|
|||
|
April 1 - April 30
|
—
|
|
|
$
|
—
|
|
|
|
May 1 - May 31
|
130,749
|
|
|
$
|
43.77
|
|
|
|
June 1- June 30
|
30,000
|
|
|
$
|
44.72
|
|
|
|
|
|
|
|
|
ITEM 6.
|
EXHIBITS
|
P
UBLIC
S
ERVICE
E
NTERPRISE
G
ROUP
I
NCORPORATED
|
|
(Registrant)
|
|
|
|
By:
|
/
S
/ S
TUART
J. B
LACK
|
|
Stuart J. Black
Vice President and Controller
(Principal Accounting Officer)
|
P
UBLIC
S
ERVICE
E
LECTRIC
A
ND
G
AS
C
OMPANY
|
|
(Registrant)
|
|
|
|
By:
|
/
S
/ S
TUART
J. B
LACK
|
|
Stuart J. Black
Vice President and Controller
(Principal Accounting Officer)
|
PSEG P
OWER
LLC
|
|
(Registrant)
|
|
|
|
By:
|
/
S
/ S
TUART
J. B
LACK
|
|
Stuart J. Black
Vice President and Controller
(Principal Accounting Officer)
|
(a)
|
Any “person” (within the meaning of Section 13(d) of the Securities Exchange Act of 1934, as amended from time to time (the “Act”)) is or becomes the beneficial owner within the meaning of Rule 13d-3 under the Act (a “Beneficial Owner”), directly or indi-rectly, of PSEG’s securities of (not including in the securities beneficially owned by such person any securities acquired directly from PSEG or its Affiliates) representing 25% or more of the combined voting power of PSEG then outstanding securi-ties, excluding any person who becomes such a Beneficial Owner in connection with a transaction described in clause (i) of paragraph (c) below; or
|
(b)
|
The following individuals cease for any reason to consti-tute a majority of the number of directors then serving: individuals who, on December 15, 1998, constitute the Board of Directors and any new director (other than a director whose initial assumption of office is in connection with an actual or threatened election contest, includ-ing but not limited to a consent solicitation, relating to the election of directors of PSEG) whose appointment or election by the Board or nomination for election by PSEG’s stockholders was approved or recommended by a vote of at least two-thirds (2/3) of the directors then still in office who either were directors on December 15, 1998 or whose appointment, election or
|
(c)
|
There is consummated a merger or consolidation of PSEG or any direct or indirect wholly owned subsidiary of PSEG with any other corporation, other than (i) a merger or consolidation which would result in the voting securities of PSEG outstanding immediately prior to such merger or consoli-dation continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity or any parent thereof), in combination with the ownership of any trustee or other fiduciary holding securities under an employee benefit plan of PSEG or any subsidiary of PSEG, at least 75% of the combined voting power of the securities of PSEG or such surviving entity or any parent thereof outstanding immediately after such merger or consolidation, or (ii) a merger or consolidation effected to implement a recapitalization of PSEG (or similar transaction) in which no person is or becomes the Beneficial Owner, directly or indirectly, of securities of PSEG representing 25% or more of the combined voting power of PSEG’s then outstanding securities; or
|
(d)
|
The stockholders of PSEG approve a plan of complete liquidation or dissolution of PSEG or there is consummated an agreement for the sale or disposition by PSEG of all or substantially all of PSEG’s assets, other than a sale or disposition by PSEG of all or substantially all of PSEG’s assets to an entity, at least 75% of the combined voting power of the voting securities of which are owned by stockholders of PSEG in substantially the same proportions as their own-ership of PSEG immediately prior to such sale.
|
(a)
|
And who incurs a Separation from Service before January 1, 2012, shall mean the annual average of the sum of:
|
(1)
|
The Participant’s last five years of Compensation, excluding any amounts received as an award under the MICP or the SMICP, without the application of the base pay cap in Section 1.10, and
|
(2)
|
The MICP or SMICP awards for the five
most recent
bonus eligible years (including $0 awards) prior to the Participant’s Separation from Service. If a Participant does not have at least five MICP/SMICP awards, the average shall be determined by using the number of bonus (including PIP bonuses, ER&T Plan bonuses and Energy Solutions Plan bonuses) eligible periods during the five most recent years.
|
(b)
|
With respect to a Participant who incurs a Separation from Service on or after January 1, 2012, Final Average Earnings shall mean:
|
(1)
|
With respect to periods of service prior to January 1, 2012, Final Average Earnings shall be determined in accordance with subsection (a) above,
|
(2)
|
With respect to periods of service after December 31, 2011, the annual average of the sum, (i) the Participant’s last seven years of Compensation beginning after December 31, 2011, excluding any MICP and SMICP awards, without the application of the base pay cap in Section 1.8, and (ii) the MICP or SMICP awards for the seven
most recent
years (including $0 awards) beginning after December 31, 2011 and prior to the Participant’s Separation from Service. If a Participant does not have at least seven MICP/SMICP awards during the seven most recent years after 2011, the average shall be determined by using the number of bonus (including PIP bonuses, ER&T Plan bonuses and Energy Solutions Plan bonuses) eligible periods after 2011 during the seven most recent years.
|
(a)
|
In the case of a Participant who is a participant in the Final Average Pay Component, a Separation from Service either (1) after attaining age 65, (2) following the date when the sum of the Participant’s age and credited service (as defined in the Final Average Pay Component) equals or exceeds 80, or (3) a disability determination under the Final Average Pay Component.
|
(b)
|
In the case of a Participant who is a participant in the Cash Balance Component, a Separation from Service after either (1) attaining age 65, (2) attaining age 55 and completing five or more years of credited service (as defined in the Cash Balance Component), or (3) a disability determination under the Cash Balance Component.
|
(a)
|
A Separation from Service shall be deemed to have occurred if a Participant and PSEG or any Affiliate reasonably anticipates, based on the facts and circumstances, that either:
|
(i)
|
The Participant will not provide any additional services for PSEG or an Affiliate after a certain date; or
|
(ii)
|
The level of bona fide services performed by the Participant after a certain date will permanently decrease to no more than 50 percent of the average level of bona fide services performed by the Participant over the immediately preceding 36 months.
|
(b)
|
If a Participant is absent from employment due to military leave, sick leave or any other bona fide leave of absence authorized by PSEG or an Affiliate and there is a reasonable expectation that the Participant will return to perform services for PSEG or an Affiliate, a Separation from Service will not occur until the later of:
|
(i)
|
The first date immediately following the date that is six months after the date that the Participant was first absent from employment; or
|
(ii)
|
The date the Participant no longer retains a right to reemployment, to the extent the Participant retains a right to reemployment with PSEG or any Affiliates under applicable law or by contract.
|
(a)
|
Final Average Pay Component Participant. The Mid-Career Hire Benefit payable to a Final Average Pay Component Participant shall be equal to the excess of (i) over (ii) where:
|
(i)
|
Is the sum of (A) the amount of the Qualified Benefit, and (B) the amount of Reinstatement Benefit to which the Participant would have been entitled as of their Normal Retirement Date if such benefits were computed using the additional years of Credited Service granted to the Participant; and
|
(ii)
|
Is the sum of: (A) the Qualified Benefit, and (B) and Reinstatement Benefit as of their Normal Retirement Date.
|
(b)
|
Cash Balance Component Participant. The Mid-Career Hire Benefit payable to a Cash Balance Component Participant shall be equal to the excess of (i) over (ii) where:
|
(i)
|
Is the sum of (A) the amount of the Qualified Benefit, and (B) the amount of Reinstatement Benefit to which the Participant would have been entitled as of their Benefit Commencement Date if such benefits were computed using the additional years of Credited Service; and
|
(ii)
|
Is the sum of: (A) the Qualified Benefit, and (B) Reinstatement Benefit as of their Benefit Commencement Date.
|
(a)
|
The Mid-Career Hire Benefit payable to a Participant shall be paid as follows:
|
(i)
|
If the Participant’s Separation from Service occurs prior to Retirement, the Mid-Career Hire Benefit shall be paid in a lump sum distribution (the lump sum amount shall be based on a deferred to age 65 lump sum factor).
|
(ii)
|
Except as provided in subsection (c), if the Participant’s Separation from Service occurs on or after their Retirement, the Participant may elect to have the Mid-Career Hire Benefit paid in the form of a single life annuity or a joint and survivor annuity.
|
(A)
|
The single life annuity option is an annuity providing equal monthly payments for the lifetime of the Participant with no survivor benefits.
|
(B)
|
The joint and survivor annuity option is a reduced monthly benefit payable to the Participant for life and to a Beneficiary for the lifetime of the Beneficiary in an amount equal to 50 percent, 75 percent, or 100 percent (as elected by the Participant) of the amount payable during the Participant’s lifetime. The pop-up rules under the Qualified Plan shall apply.
|
(b)
|
A Participant election as to an annuity form of payment pursuant to paragraph (a)(ii) shall also apply to any benefits payable to the Participant under the Reinstatement Plan and the Limited Benefit. If a Participant fails to make a timely election, their Mid-Career Hire Benefit shall be paid in the form of:
|
(i)
|
A single life annuity, if they are not married as of their Benefit Commencement Date; or
|
(i)
|
A 50 percent joint and survivor annuity with their spouse as Beneficiary, if they are married as of their Benefit Commencement Date. The pop-up rules under the Qualified Plan shall apply.
|
(c)
|
Notwithstanding paragraphs (a) and (b), if the Participant’s total vested benefit under the SERP and the Reinstatement Plan, as presently valued at the time of commencement of the payment of such benefit, does not exceed $30,000, benefits under the SERP and the Reinstatement Plan shall be paid in a single lump sum distribution. If the Participant does not meet the criteria for Retirement, the lump sum amount shall be based on the deferred to age 65 lump sum factor. If the Participant does meet the criteria for Retirement, the lump sum amount shall be based on the immediate lump sum factor.
|
(a)
|
The first segment rate as determined pursuant to Section 417(e)(3)(C) and (D) of the Code for the second month preceding the first day of the Plan Year in which the Separation from Service occurs; or
|
(b)
|
6 percent, in the case of a Participant who is a participant in the Cash Balance Component.
|
(a)
|
Final Average Pay Component Participant. If a married Participant dies prior to commencement of payment of their Mid-Career Hire Benefit, a Mid-Career Hire
|
(i)
|
Is the sum of: the amount of the Qualified Plan Surviving Spouse Benefit and the amount of Reinstatement Plan Surviving Spouse Benefit to which the Surviving Spouse would have been entitled under those plans, as of the Participant’s Normal Retirement Date if such benefits were computed with the additional years of Credited Service; and
|
(ii)
|
Is the sum of the Qualified Plan Surviving Spouse Benefit Surviving Spouse Benefit and Reinstatement Plan Surviving Spouse Benefit payable to the Surviving Spouse as of the Participant’s Normal Retirement Date.
|
(b)
|
Cash Balance Component Participant. If a Participant dies prior to commencement of payment of their Mid-Career Hire Benefit, a Mid-Career Hire Surviving Spouse Benefit shall be payable to the Participant’s Spouse. The Mid-Career Hire Surviving Spouse Benefit shall be equal to the excess of (i) over (ii) where:
|
(i)
|
Is the sum of the amount of the Cash Balance Component account and the amount of Reinstatement Plan Surviving Spouse Benefit to which the Surviving Spouse would have been entitled under the Qualified Plan and the Reinstatement Plan, as of the Participant’s Normal Retirement Date if such benefits were computed with the additional years of Credited Service; and
|
(ii)
|
Is the sum of the Qualified Surviving Spouse Benefit and the Reinstatement Plan Surviving Spouse Benefit payable to the Surviving Spouse as of the Participant’s Normal Retirement Date.
|
(a)
|
If the Participant’s death occurs prior to Retirement, the present value of the Mid-Career Hire Surviving Spouse Benefit shall be paid in a single lump sum distribution.
|
(b)
|
If the Participant’s death occurs on or after Retirement, the Mid-Career Hire Surviving Spouse Benefit shall be payable in monthly installments over the life of the Surviving Spouse. Notwithstanding the preceding sentence, if the present value of the total benefit payable to the Surviving Spouse under the SERP and the Reinstatement Plan does not exceed $20,000, the benefit payable shall be made in a single lump sum distribution.
|
(i)
|
The Participant’s Compensation shall be multiplied by an amount equal to one one-hundredth of the sum of
(x)
the number of the Participant’s years of Credited Service under the Final Average Pay Component at Retirement (including any additional years of age and Credited Service provided to the Participant in accordance with any employment, change in control, or similar arrangement applicable to the Participant so long as the
|
(ii)
|
The amount determined under subparagraph (i) of this Section 3.4(a) shall be reduced by the sum of
(x)
the amount the Participant would be entitled to at Retirement as an annual pension benefit under the Final Average Pay Component, Section 2 of the SERP and the Reinstatement Plan calculated as a single life annuity payable at the Participant’s Normal Retirement Date without reduction for any pre-retirement survivor’s option coverage or any reduction for early retirement,
(y)
100% of the amount of the unreduced annual Social Security benefit to which the Participant would be entitled at age 65 (or such other age which may be established by the Social Security Administration from time to time as the earliest age at which a Participant may receive an unreduced benefit thereunder), assuming that the Participant has no earnings from the date of Retirement to age 65 (or such other applicable age), or, if greater, any disability benefit under Social Security to which the Participant may be entitled, and
(z)
the aggregate of the annual benefits to which the Participant is entitled under all Retirement Plans as of the date the Participant is employed by PSEG or an Affiliate, such Social Security Benefits and benefits under all Retirement Plans to be calculated as single life annuities without any reductions, under rules, procedures and equivalents determined by the Employee Benefits Committee. To determine the amounts referred to under (y) and (z) above, the Participant shall file a declaration of all such amounts with the Corporate Benefits Department in such form as the Employee Benefits Committee may require from time to time. No benefit shall be paid under the SERP until such a declaration, in satisfactory form, shall be so filed. If a Participant is granted a disability Social Security benefit, they shall notify the Corporate Benefits Department thereof within 30 days thereof, and the Participant’s retirement benefit under this section of the SERP shall be adjusted accordingly. The Company shall be entitled to rely on such statements in making payment, and if any such statement is incorrect or is not furnished, the Company shall be entitled to reimbursement from the Participant, the Beneficiary or their legal representatives for any overpayment and may reduce or suspend future payments to recover any such overpayment. In the event it is established to the satisfaction of the Employee Benefits Committee, in its sole discretion, that any such statement was intentionally false or omitted, the Participant or Beneficiary shall be entitled to no further payments under this section of the SERP, and the Company shall be entitled to recover any payments made hereunder.
|
(iii)
|
For Participants who incur a Separation from Service after December 31, 2011, the number of any additional years of Credited Service granted to a Participant under Subsection 3.4(a)(i)(y) of the SERP that a Participant may be entitled under Section 2 of the SERP or any written arrangement with PSEG or an Affiliate shall be applied to the 7-year final average pay formula. The 30 points credited to a Participant under Subsection 3.4(a)(i)(z) of the SERP shall be prorated based on the number of actual years of Credited Service that a Participant has as of December 31, 2011 and has during the period beginning on January 1, 2012 and ending on the date they incur a Separation from Service, without regard to any additional years of Credited Service granted to the Participant under Subsection 3.4(a)(i)(y) and without regards to any cap on Credited Service.
|
(i)
|
The Participant’s Compensation shall be multiplied by an amount equal to one one-hundredth of the sum of
(x)
the number of the Participant’s years of Credited Service under the Final Average Pay Component with which such Participant would have been credited at Retirement had the Participant participated in the Final Average Pay Component from their date of hire and including any additional years of age and Credited Service provided to the Participant in accordance with any employment, change in control, or similar arrangement applicable to the Participant so long as the Participant incurs a termination of service from PSEG and its Affiliates during the two-year period commencing upon the date of a Change in Control,
(y)
the number of any additional years of Credited Service to which the Participant may be entitled under Section 3 of the SERP or any written arrangement with PSEG or an Affiliate (excluding any written arrangement between PSEG or an Affiliate relating to a Change in Control) and
(z)
30; but, in no event, shall the multiple be greater than 0.75.
|
(ii)
|
The amount determined under subparagraph (i) of this Subsection 3.4(b) shall be reduced by the sum of
(x)
the amount the Participant would be entitled to at Retirement as an annual pension benefit under the Cash Balance Component, Section 2 of the SERP and the Reinstatement Plan calculated as a single life annuity payable at the Participant’s Normal Retirement Date
,
(y)
100% of the amount of the unreduced annual Social Security benefit to which the Participant would be entitled at age 65 (or such other age which may be established by the Social Security Administration from time to time as the earliest age at which a Participant may receive an unreduced benefit thereunder), assuming that the Participant has no earnings from the date of Retirement to age 65
|
(iii)
|
For Participants who incur a Separation from Service after December 31, 2011, the number of any additional years of Credited Service granted to a Participant under Subsection 3.4(b)(i)(y) of the SERP that a Participant may be entitled under Section 2 of the SERP or any written arrangement with PSEG or an Affiliate shall be applied to the 7-year final average pay formula. The 30 points credited to a Participant under Subsection 3.4(b)(i)(z) of the SERP shall be prorated based on the number of actual years of Credited Service that a Participant has as of December 31, 2011 and has during the period beginning on January 1, 2012 and ending on the date they incur a Separation from Service, without regard to any additional years of Credited Service granted to the Participant under Subsection 3.4(b)(i)(y) and without regards to any cap on Credited Service.
|
3.5
|
Forms of Payment.
|
(a)
|
The annual amount determined under Section 3.4 shall be paid in the form of a life annuity; either a single life annuity or a joint and survivor annuity, as elected by the Participant.
|
(a)
|
The single life annuity option is an annuity providing equal monthly payments for the lifetime of the Participant with no survivor benefits.
|
(i)
|
The joint and survivor annuity option is a reduced monthly benefit payable to the Participant for life and to a surviving named Beneficiary for the lifetime of the Beneficiary in an amount equal to 50%, 75%, or 100% (as elected by the Participant) of the amount payable during the Participant’s lifetime.
|
(b)
|
A Participant may elect an annuity form of payment pursuant to paragraph (a) at any time before their Benefit Commencement Date. If a Participant fails to make a timely election, their retirement benefit shall be paid in the form of:
|
(i)
|
A single life annuity, if they are not married as of their benefit commencement date; or
|
(ii)
|
A 50 percent joint and survivor annuity with their spouse as Beneficiary, if they are married as of their benefit commencement date.
|
(c)
|
Except as otherwise provided in this paragraph (c), payment of a Participant’s Limited Benefit shall commence or be paid within the 90-day period following Benefit Commencement Date, but in no event later than the last day permitted under Section 409A of the Code for treating a delayed payment as having been made on such payment date.
|
(d)
|
If a Participant earns a Limited Benefit after a Retirement, any annuity benefits being paid to the Participant shall be increased to reflect such additional accruals as of the January 1 following the Plan Year in which such Limited Benefit accrues. If the Participant received a lump sum distribution of their Limited Benefit as of the earlier Retirement, the value of the additional accruals shall be paid to them in a lump sum distribution as of the January 1 following the Plan Year in which such additional benefit accrues.
|
(a)
|
Employ agents to carry out non‑fiduciary responsibilities;
|
(b)
|
Employ agents to carry out fiduciary responsibilities (other than trustee responsibilities as defined in Section 405(c)(3) of ERISA);
|
(c)
|
Consult with counsel, who may be counsel to PSEG or an Affiliate; and
|
(d)
|
Provide for the allocation of fiduciary responsibilities (other than trustee responsibilities as defined in Section 405(c)(3) of ERISA) among its members.
|
(a)
|
For the exclusive purpose of providing benefits to Participants and their Beneficiaries;
|
(b)
|
With the care, skill, prudence and diligence under the circumstances then prevailing that a prudent person acting in like capacity and familiar with such matters would use in the conduct of an enterprise of alike character and with like aims; and
|
(c)
|
In accordance with the documents and instruments governing the SERP insofar as such documents and instruments are consistent with the provisions of Title I of ERISA.
|
1.
|
Edwin Eilola Director Projects
|
(a)
|
And who incurs a Separation from Service before January 1, 2012, shall mean the annual average of the sum of:
|
(1)
|
The Participant’s
highest
five years of Compensation, excluding any amounts received as an award under the MICP or the SMICP, without the application of the base pay cap in Section 1.8; and
|
(2)
|
The MICP or SMICP awards for the five
most recent
bonus eligible years (including $0 awards) prior to the Participant’s Separation from Service. If a Participant does not have at least five MICP/SMICP awards, the average shall be determined by using the number of bonus (including PIP bonuses, ER&T Plan bonuses and Energy Solutions Plan bonuses) eligible periods during the five most recent years.
|
(b)
|
With respect to a Participant who incurs a Separation from Service on or after January 1, 2012 and who is entitled to a benefit under the Final Average Pay Component, Final Average Earnings shall mean:
|
(1)
|
With respect to periods of service prior to January 1, 2012, Final Average Earnings shall be determined in accordance with subsection (a) above, except that Separation from Service shall be replaced with December 31, 2011.
|
(2)
|
With respect to periods of service after December 31, 2011, the annual average of the sum, (i) the Participant’s highest seven years of Compensation beginning after December 31, 2011, excluding any MICP and SMICP awards, and (ii) the MICP or SMICP awards for the seven
most recent
years (including $0 awards) beginning after December 31, 2011 and prior to the Participant’s Separation from Service, without the application of the base pay cap in Section 1.8. If a Participant does not have at least seven MICP/SMICP awards during the seven most recent years after 2011, the average shall be determined by using the number of bonus (including PIP bonuses, ER&T Plan bonuses and Energy Solutions Plan bonuses) eligible periods after 2011 during the seven most recent years.
|
(a)
|
In the case of a Participant who is a participant in the Final Average Pay Component, Retirement shall mean a Separation from Service either (1) after attaining age 65; (2) when the sum of the Participant’s age and credited service (as defined in the Final Average Pay Component) equals or exceeds 80, or (3) a disability determination under the Final Average Pay Component.
|
(b)
|
In the case of a Participant who is a participant in the Cash Balance Component, Retirement shall mean a Separation from Service after either (1) attaining age 65, (2) attaining age 55 and completing five or more years of credited service (as defined in the Cash Balance Component), or (3) a disability determination under the Cash Balance Component.
|
(a)
|
A Separation from Service shall be deemed to have occurred if a Participant and PSEG or any Affiliate reasonably anticipates, based on the facts and circumstances, that either:
|
(1)
|
The Participant will not provide any additional services for PSEG or an
Affiliate after a certain date; or
|
(2)
|
The level of bona fide services performed by the Participant after a certain date will permanently decrease to no more than 50 percent of the average level of bona fide services performed by the Participant over the immediately preceding 36 months.
|
(b)
|
If a Participant is absent from employment due to military leave, sick leave, or any other bona fide leave of absence authorized by PSEG or an Affiliate and there is a reasonable expectation that the Participant will return to perform services for PSEG or an Affiliate, a Separation from Service will not occur until the later of:
|
(1)
|
The first date immediately following the date that is six months after the date that the Participant was first absent from employment; or
|
(2)
|
The date the Participant no longer retains a right to reemployment, to the extent the Participant retains a right to reemployment with PSEG or any Affiliates under applicable law or by contract.
|
2.1
|
An Employee may be eligible for a Reinstatement Benefit under the Reinstatement Plan if:
|
(a)
|
For a Cash Balance Component participant, the Employee’s Compensation for a Plan Year is in excess of the Section 401(a)(17) limit for such Plan Year;
|
(b)
|
For a Final Average Pay Component participant, the Employee’s Compensation for a twelve month period used in the Final Average Earnings calculation is in excess of the Section 401(a)(17) limit for such twelve month period.
|
(c)
|
An Employee’s whose Qualified Benefit exceeds the limit under Section 415(b) of the Code.
|
(d)
|
An Employee who receives a bonus under the MICP or SMICP, or receives an ER&T Plan bonus above 150% of base pay.
|
(e)
|
An Employee who pursuant to an individual agreement receives additional years of service that is not taken into account under SERP.
|
(f)
|
Any other circumstances determined by PSEG.
|
(a)
|
A Participant in the Final Average Pay Component who incurs a Separation from Service and who is eligible for a Reinstatement Benefit shall be entitled to receive a benefit as of their Normal Retirement Date equal to the excess of (1) over (2) where:
|
(1)
|
Is the amount of the Qualified Benefit to which the Participant would have been entitled under the Final Average Pay Component as of their Normal Retirement Date if such benefit were computed by applying the definition of Final Average Earnings under the Reinstatement Plan ; and
|
(2)
|
Is the amount of the Participant’s Qualified Benefit under the Final Average Pay Component as of their Normal Retirement Date.
|
(b)
|
This Reinstatement Benefit shall be calculated as a single life annuity commencing on the Participant’s Normal Retirement Date. If payment of a Participant’s Reinstatement Benefit commences or is paid before their Normal Retirement Date, the benefit amount calculated pursuant to paragraph (a) or paragraph (b) shall be reduced for early commencement in accordance with the early retirement reduction factors applicable to calculation of the Participant’s benefit under the Final Average Pay Component.
|
(c)
|
Notwithstanding any other provision of the Reinstatement Plan to the contrary, the Reinstatement Benefit payable to Frederick W. Lark and Richard D. Quinn, III, shall be calculated as of December 31, 2008 and shall be paid commencing as of January 31, 2009.
|
(d)
|
A Participant in the Cash Balance Component who is eligible for a Reinstatement Benefit shall be entitled to receive a benefit as of their Benefit Commencement Date equal to the excess of (1) over (2) where:
|
(1)
|
Is the amount of the Qualified Benefit to which the Participant would be entitled under the Cash Balance Component as of their Benefit Commencement Date if such benefit were computed by applying the definition of Compensation under the Reinstatement Plan; and
|
(2)
|
Is the amount of the Qualified Benefit payable to the Participant under the Cash Balance Component as of their Benefit Commencement Date.
|
(e)
|
Notwithstanding any other provision of the Reinstatement Plan to the contrary, a Reinstatement Benefit shall be payable to a Participant in the Final Average Pay Component if the amount of the Participant’s QSERP under the Qualified Plan is
|
(a)
|
If the Participant’s Separation from Service occurs prior to Retirement, the present value of their Reinstatement Benefit shall be paid in a single lump sum distribution (the lump sum amount shall be based on the deferred to age 65 lump sum factor);
|
(b)
|
Except as otherwise provided in paragraph (d), if the Participant’s Separation from Service occurs on or after their Retirement, the Participant may elect to receive their Reinstatement Benefit in the form of a single life annuity or a joint and survivor annuity.
|
(1)
|
The single life annuity option is an annuity providing equal monthly payments for the lifetime of the Participant with no survivor benefits.
|
(2)
|
The joint and survivor annuity option is a reduced monthly benefit payable to the Participant for life and to a surviving named Beneficiary for the lifetime of the Beneficiary in an amount equal to 50 percent, 75 percent, or 100 percent (as elected by the Participant) of the amount payable during the Participant’s lifetime. The pop-up rules under the Qualified Plan shall apply to the Reinstatement Benefit.
|
(c)
|
A Participant election as to an annuity form of payment pursuant to paragraph (b) shall also apply to any benefits payable to the Participant under the SERP. If a Participant fails to make a timely election, their Reinstatement Benefit shall be paid in the form of:
|
(1)
|
A single life annuity, if they are not married as of their Benefit Commencement Date; or
|
(2)
|
A 50 percent joint and survivor annuity with their spouse as Beneficiary, if they are married as of their Benefit Commencement Date. The pop-up rules under the Qualified Plan shall apply to the Reinstatement Benefit.
|
(d)
|
Notwithstanding paragraphs (b) and (c), if the Participant’s total vested benefit under the Reinstatement Plan and the SERP, as presently valued at the time of commencement of the payment of such benefit, does not exceed $30,000, their
|
(a)
|
The first segment rate as determined pursuant to Section 417(e)(3)(C) and (D) of the Code for the second month preceding the first day of the Plan Year in which the Separation from Service occurs; or
|
(b)
|
6 percent, in the case of a Participant who is a participant in the Cash Balance Component.
|
(a)
|
In the case of a Participant in the Final Average Pay Component, the Reinstatement Surviving Spouse Benefit shall be determined as of the Participant’s Normal Retirement Date equal to the excess of (1) over (2) where:
|
(1)
|
Is the amount of the Qualified Plan Surviving Spouse Benefit to which the Surviving Spouse would have been entitled under the Final Average Pay Component if such benefit were computed by applying the definition of Final Average Earnings under the Reinstatement Plan; and
|
(b)
|
In the case of a Participant in the Cash Balance Component, the Reinstatement Surviving Spouse Benefit shall be equal to the excess of (1) over (2) where:
|
(1)
|
Is the amount of the Qualified Plan Surviving Spouse Benefit to which the Surviving Spouse would be entitled under the Cash Balance Component as of the Participant’s date of death if such benefit were computed by applying the definition of Compensation under the Reinstatement Plan; and
|
(2)
|
Is the amount of the Qualified Plan Surviving Spouse Benefit actually payable to the Surviving Spouse under the Cash Balance Component as of the Participant’s date of death.
|
(a)
|
If the Participant’s death occurs prior to Retirement, the present value of the Reinstatement Surviving Spouse Benefit shall be paid in a lump sum distribution.
|
(b)
|
If the Participant’s death occurs on or after Retirement, the Reinstatement Surviving Spouse Benefit shall be payable over the lifetime of the Surviving Spouse in monthly installments until the Surviving Spouse’s death. Notwithstanding the preceding sentence, if the present value of the total benefit payable to the Surviving Spouse under the Reinstatement Plan and the SERP does not exceed $20,000, the benefit under the Reinstatement Plan and the SERP shall be paid in a lump sum distribution.
|
(a)
|
Employ agents to carry out non‑fiduciary responsibilities;
|
(b)
|
Employ agents to carry out fiduciary responsibilities (other than trustee responsibilities as defined in Section 405(c)(3) of ERISA);
|
(c)
|
Consult with counsel, who may be counsel to PSEG or an Affiliate; and
|
(d)
|
Provide for the allocation of fiduciary responsibilities (other than trustee responsibilities as defined in Section 405(c)(3) of ERISA) among its members.
|
(a)
|
For the exclusive purpose of providing benefits to Participants and their Beneficiaries;
|
(b)
|
With the care, skill, prudence and diligence under the circumstances then prevailing that a prudent person acting in like capacity and familiar with such matters would use in the conduct of an enterprise of alike character and with like aims; and
|
(c)
|
In accordance with the documents and instruments governing the Reinstatement Plan insofar as such documents and instruments are consistent with the provisions of Title I of ERISA.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
|
|
Six Months Ended
|
|
Years Ended
|
|
||||||||||||||||||||||||
|
|
|
June 30,
|
|
December 31,
|
|
||||||||||||||||||||||||
|
|
|
2017
|
|
2016
|
|
2016
|
|
2015
|
|
2014
|
|
2013
|
|
2012
|
|
||||||||||||||
|
|
|
(Millions, except ratios)
|
|
||||||||||||||||||||||||||
|
Earnings as Defined in Regulation S-K (A):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Pre-tax Income from Continuing Operations
|
|
$
|
311
|
|
|
$
|
1,032
|
|
|
$
|
1,298
|
|
|
$
|
2,680
|
|
|
$
|
2,456
|
|
|
$
|
2,055
|
|
|
$
|
2,011
|
|
|
|
(Income) Loss from Equity Investees, net of Distributions
|
|
1
|
|
|
3
|
|
|
7
|
|
|
3
|
|
|
4
|
|
|
(7
|
)
|
|
9
|
|
|
|||||||
|
Fixed Charges
|
|
245
|
|
|
232
|
|
|
477
|
|
|
457
|
|
|
450
|
|
|
458
|
|
|
479
|
|
|
|||||||
|
Capitalized Interest
|
|
33
|
|
|
(19
|
)
|
|
(7
|
)
|
|
(18
|
)
|
|
(16
|
)
|
|
(16
|
)
|
|
(19
|
)
|
|
|||||||
|
Total Earnings
|
|
$
|
590
|
|
|
$
|
1,248
|
|
|
$
|
1,775
|
|
|
$
|
3,122
|
|
|
$
|
2,894
|
|
|
$
|
2,490
|
|
|
$
|
2,480
|
|
|
|
Fixed Charges as Defined in Regulation S-K (B)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Interest Expense
|
|
$
|
233
|
|
|
$
|
221
|
|
|
$
|
456
|
|
|
$
|
437
|
|
|
$
|
430
|
|
|
$
|
442
|
|
|
$
|
465
|
|
|
|
Interest Factor in Rentals
|
|
12
|
|
|
11
|
|
|
21
|
|
|
20
|
|
|
20
|
|
|
16
|
|
|
14
|
|
|
|||||||
|
Total Fixed Charges
|
|
$
|
245
|
|
|
$
|
232
|
|
|
$
|
477
|
|
|
$
|
457
|
|
|
$
|
450
|
|
|
$
|
458
|
|
|
$
|
479
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Ratio of Earnings to Fixed Charges
|
|
2.41
|
|
|
5.38
|
|
|
3.72
|
|
|
6.83
|
|
|
6.43
|
|
|
5.44
|
|
|
5.18
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(A)
|
The term “earnings” shall be defined as pre-tax Income from Continuing Operations before income or loss from equity investees plus distributed income from equity investees. Add to pre-tax income the amount of fixed charges adjusted to exclude (a) the amount of any interest capitalized during the period and (b) the actual amount of any preferred securities dividend requirements of majority-owned subsidiaries stated on a pre-tax level.
|
(B)
|
Fixed Charges represent (a) interest, whether expensed or capitalized, (b) amortization of debt discount, premium and expense, (c) an estimate of interest implicit in rentals, and (d) preferred securities dividend requirements of majority-owned subsidiaries stated on a pre-tax level. There were no preferred stock dividend requirements for any period presented.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
|
Six Months Ended
|
|
Years Ended
|
|
||||||||||||||||||||||||
|
|
June 30,
|
|
December 31,
|
|
||||||||||||||||||||||||
|
|
2017
|
|
2016
|
|
2016
|
|
2015
|
|
2014
|
|
2013
|
|
2012
|
|
||||||||||||||
|
|
(Millions, except ratios)
|
|
||||||||||||||||||||||||||
|
Earnings as Defined in Regulation S-K (A):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Pre-tax Income from Continuing Operations
|
$
|
801
|
|
|
$
|
690
|
|
|
$
|
1,404
|
|
|
$
|
1,257
|
|
|
$
|
1,174
|
|
|
$
|
993
|
|
|
$
|
835
|
|
|
|
Fixed Charges
|
157
|
|
|
154
|
|
|
316
|
|
|
306
|
|
|
303
|
|
|
316
|
|
|
314
|
|
|
|||||||
|
Capitalized Interest
|
(9
|
)
|
|
(7
|
)
|
|
(17
|
)
|
|
(17
|
)
|
|
(16
|
)
|
|
(16
|
)
|
|
(13
|
)
|
|
|||||||
|
Total Earnings
|
$
|
949
|
|
|
$
|
837
|
|
|
$
|
1,703
|
|
|
$
|
1,546
|
|
|
$
|
1,461
|
|
|
$
|
1,293
|
|
|
$
|
1,136
|
|
|
|
Fixed Charges as Defined in Regulation S-K (B)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Interest Expense
|
$
|
153
|
|
|
$
|
149
|
|
|
$
|
306
|
|
|
$
|
297
|
|
|
$
|
293
|
|
|
$
|
309
|
|
|
$
|
308
|
|
|
|
Interest Factor in Rentals
|
4
|
|
|
5
|
|
|
10
|
|
|
9
|
|
|
10
|
|
|
7
|
|
|
6
|
|
|
|||||||
|
Total Fixed Charges
|
$
|
157
|
|
|
$
|
154
|
|
|
$
|
316
|
|
|
$
|
306
|
|
|
$
|
303
|
|
|
$
|
316
|
|
|
$
|
314
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Ratio of Earnings to Fixed Charges
|
6.04
|
|
|
5.44
|
|
|
5.39
|
|
|
5.05
|
|
|
4.82
|
|
|
4.09
|
|
|
3.62
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(A)
|
The term "earnings" shall be defined as pre-tax Income from Continuing Operations. Add to pre-tax income the amount of fixed charges adjusted to exclude (a) the amount of any interest capitalized during the period, (b) the actual amount of any preferred securities dividend requirements of majority owned subsidiaries, and (c) preferred stock dividends which were included in such fixed charges amount but not deducted in the determination of pre-tax income.
|
(B)
|
Fixed Charges represent (a) interest, whether expensed or capitalized, (b) amortization of debt discount, premium and expense, (c) an estimate of interest implicit in rentals, and (d) preferred securities dividend requirements of majority owned subsidiaries and preferred stock dividends, increased to reflect the pre-tax earnings requirement for PSE&G. There were no preferred stock dividend requirements for any period presented.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
|
|
Six Months Ended
|
|
Years Ended
|
|
||||||||||||||||||||||||
|
|
|
June 30,
|
|
December 31,
|
|
||||||||||||||||||||||||
|
|
|
2017
|
|
2016
|
|
2016
|
|
2015
|
|
2014
|
|
2013
|
|
2012
|
|
||||||||||||||
|
|
|
(Millions, except ratios)
|
|
||||||||||||||||||||||||||
|
Earnings as Defined in Regulation S-K (A):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Pre-tax Income (Loss) from Continuing Operations
|
|
$
|
(445
|
)
|
|
$
|
299
|
|
|
$
|
(43
|
)
|
|
$
|
1,367
|
|
|
$
|
1,251
|
|
|
$
|
1,063
|
|
|
$
|
1,099
|
|
|
|
(Income) Loss from Equity Investees, net of Distributions
|
|
1
|
|
|
3
|
|
|
7
|
|
|
1
|
|
|
3
|
|
|
(10
|
)
|
|
(6
|
)
|
|
|||||||
|
Fixed Charges
|
|
67
|
|
|
69
|
|
|
142
|
|
|
152
|
|
|
150
|
|
|
143
|
|
|
164
|
|
|
|||||||
|
Capitalized Interest
|
|
42
|
|
|
(12
|
)
|
|
11
|
|
|
(1
|
)
|
|
1
|
|
|
1
|
|
|
(6
|
)
|
|
|||||||
|
Total Earnings
|
|
$
|
(335
|
)
|
|
$
|
359
|
|
|
$
|
117
|
|
|
$
|
1,519
|
|
|
$
|
1,405
|
|
|
$
|
1,197
|
|
|
$
|
1,251
|
|
|
|
Fixed Charges as Defined in Regulation S-K (B)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Interest Expense
|
|
$
|
64
|
|
|
$
|
67
|
|
|
$
|
138
|
|
|
$
|
148
|
|
|
$
|
146
|
|
|
$
|
139
|
|
|
$
|
161
|
|
|
|
Interest Factor in Rentals
|
|
3
|
|
|
2
|
|
|
4
|
|
|
4
|
|
|
4
|
|
|
4
|
|
|
3
|
|
|
|||||||
|
Total Fixed Charges
|
|
$
|
67
|
|
|
$
|
69
|
|
|
$
|
142
|
|
|
$
|
152
|
|
|
$
|
150
|
|
|
$
|
143
|
|
|
$
|
164
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Ratio of Earnings to Fixed Charges (C)
|
|
(5.00
|
)
|
|
5.20
|
|
|
0.82
|
|
|
9.99
|
|
|
9.37
|
|
|
8.37
|
|
|
7.63
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(A)
|
The term “earnings” shall be defined as pre-tax Income from Continuing Operations before income or loss from equity method investees plus distributed income from equity investees.
Add to pre-tax income the amount of fixed charges adjusted to exclude the amount of any interest capitalized during the period.
|
(B)
|
Fixed Charges represent (a) interest, whether expensed or capitalized, (b) amortization of debt discount, premium and expense, and (c) an estimate of interest implicit in rentals.
|
(C)
|
The ratio of earnings to fixed charges for the six months ended June 30, 2017, was (5.00), as noted above, which represents a deficiency of $402 million. The ratio of earnings to fixed charges for the year ended December 31, 2016, was 0.82, as noted above, which represents a deficiency of $25 million.
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q of Public Service Enterprise Group Incorporated;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date:
|
July 28, 2017
|
/s/ Ralph Izzo
|
|
|
Ralph Izzo
|
|
|
Public Service Enterprise Group Incorporated
|
|
|
Chief Executive Officer
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q of Public Service Enterprise Group Incorporated;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date:
|
July 28, 2017
|
/s/ Daniel J. Cregg
|
|
|
Daniel J. Cregg
|
|
|
Public Service Enterprise Group Incorporated
|
|
|
Chief Financial Officer
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q of Public Service Electric and Gas Company;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date:
|
July 28, 2017
|
/s/ Ralph Izzo
|
|
|
Ralph Izzo
|
|
|
Public Service Electric and Gas Company
|
|
|
Chief Executive Officer
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q of Public Service Electric and Gas Company;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date:
|
July 28, 2017
|
/s/ Daniel J. Cregg
|
|
|
Daniel J. Cregg
|
|
|
Public Service Electric and Gas Company
|
|
|
Chief Financial Officer
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q of PSEG Power LLC;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date:
|
July 28, 2017
|
/s/ Ralph Izzo
|
|
|
Ralph Izzo
|
|
|
PSEG Power LLC
|
|
|
Chief Executive Officer
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q of PSEG Power LLC;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date:
|
July 28, 2017
|
/s/ Daniel J. Cregg
|
|
|
Daniel J. Cregg
|
|
|
PSEG Power LLC
|
|
|
Chief Financial Officer
|
/s/ Ralph Izzo
|
Ralph Izzo
|
Public Service Enterprise Group Incorporated
|
Chief Executive Officer
|
July 28, 2017
|
/s/ Daniel J. Cregg
|
Daniel J. Cregg
|
Public Service Enterprise Group Incorporated
|
Chief Financial Officer
|
July 28, 2017
|
/s/ Ralph Izzo
|
Ralph Izzo
|
Public Service Electric and Gas Company
|
Chief Executive Officer
|
July 28, 2017
|
/s/ Daniel J. Cregg
|
Daniel J. Cregg
|
Public Service Electric and Gas Company
|
Chief Financial Officer
|
July 28, 2017
|
/s/ Ralph Izzo
|
Ralph Izzo
|
PSEG Power LLC
|
Chief Executive Officer
|
July 28, 2017
|
/s/ Daniel J. Cregg
|
Daniel J. Cregg
|
PSEG Power LLC
|
Chief Financial Officer
|
July 28, 2017
|