Commission
File Number
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Registrants, State of Incorporation,
Address, and Telephone Number
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I.R.S. Employer
Identification No.
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001-09120
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PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED
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22-2625848
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(A New Jersey Corporation)
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80 Park Plaza
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Newark, New Jersey 07102
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973 430-7000
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http://www.pseg.com
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001-00973
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PUBLIC SERVICE ELECTRIC AND GAS COMPANY
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22-1212800
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(A New Jersey Corporation)
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80 Park Plaza
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Newark, New Jersey 07102
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973 430-7000
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http://www.pseg.com
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001-34232
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PSEG POWER LLC
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22-3663480
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(A Delaware Limited Liability Company)
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80 Park Plaza
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Newark, New Jersey 07102
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973 430-7000
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http://www.pseg.com
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Registrant
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Title of Each Class
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Name of Each Exchange
On Which Registered
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Public Service Enterprise
Group Incorporated
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Common Stock without par value
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New York Stock Exchange
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First and Refunding Mortgage Bonds
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Public Service Electric
and Gas Company
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9
1
/4% Series CC, due 2021
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New York Stock Exchange
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8%, due 2037
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5%, due 2037
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PSEG Power LLC
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8
5
/8% Senior Notes, due 2031
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New York Stock Exchange
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Securities registered pursuant to Section 12(g) of the Act:
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Registrant
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Title of Each Class
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Public Service Electric and Gas Company
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Medium-Term Notes
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PSEG Power LLC
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Limited Liability Company Membership Interest
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Public Service Enterprise Group Incorporated
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Yes
x
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No
¨
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Public Service Electric and Gas Company
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Yes
x
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No
¨
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PSEG Power LLC
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Yes
x
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No
¨
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Public Service Enterprise Group Incorporated
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Large accelerated filer
x
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Accelerated filer
o
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Non-accelerated filer
o
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Smaller reporting company
o
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Emerging growth company
o
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Public Service Electric and Gas Company
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Large accelerated filer
o
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Accelerated filer
o
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Non-accelerated filer
x
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Smaller reporting company
o
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Emerging growth company
o
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PSEG Power LLC
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Large accelerated filer
o
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Accelerated filer
o
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Non-accelerated filer
x
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Smaller reporting company
o
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Emerging growth company
o
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Part of Form 10-K of
Public Service
Enterprise Group Incorporated
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Documents Incorporated by Reference
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III
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Portions of the definitive Proxy Statement for the 2019 Annual Meeting of Stockholders of Public Service Enterprise Group Incorporated, which definitive Proxy Statement is expected to be filed with the Securities and Exchange Commission on or about March 12, 2019, as specified herein.
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Page
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FORWARD-LOOKING STATEMENTS
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FILING FORMAT
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WHERE TO FIND MORE INFORMATION
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PART I
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Item 1.
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Business
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Regulatory Issues
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Environmental Matters
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Executive Officers of the Registrant (PSEG)
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Item 1A.
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Risk Factors
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Item 1B.
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Unresolved Staff Comments
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Item 2.
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Properties
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Item 3.
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Legal Proceedings
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Item 4.
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Mine Safety Disclosures
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PART II
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Item 5.
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Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
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Item 6.
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Selected Financial Data
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Item 7.
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Management’s Discussion and Analysis of Financial Condition and Results of Operations
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Executive Overview of 2018 and Future Outlook
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Results of Operations
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Liquidity and Capital Resources
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Capital Requirements
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Off-Balance Sheet Arrangements
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Critical Accounting Estimates
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Item 7A.
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Quantitative and Qualitative Disclosures About Market Risk
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Item 8.
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Financial Statements and Supplementary Data
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Report of Independent Registered Public Accounting Firm
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Consolidated Financial Statements
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Notes to Consolidated Financial Statements
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Note 1. Organization, Basis of Presentation and Summary of Significant Accounting Policies
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Note 2. Recent Accounting Standards
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Note 3. Revenues
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Note 4. Early Plant Retirements
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Note 5. Variable Interest Entity
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Note 6. Property, Plant and Equipment and Jointly-Owned Facilities
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Note 7. Regulatory Assets and Liabilities
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Note 8. Long-Term Investments
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Note 9. Financing Receivables
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Note 10. Trust Investments
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Note 11. Goodwill and Other Intangibles
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Note 12. Asset Retirement Obligations (AROs)
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Note 13. Pension, Other Postretirement Benefits (OPEB) and Savings Plans
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Note 14. Commitments and Contingent Liabilities
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Note 15. Debt and Credit Facilities
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Note 16. Schedule of Consolidated Capital Stock
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•
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fluctuations in wholesale power and natural gas markets, including the potential impacts on the economic viability of our generation units;
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•
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our ability to obtain adequate fuel supply;
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•
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any inability to manage our energy obligations with available supply;
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•
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PSE&G’s proposed investment programs may not be fully approved by regulators and its capital investment may be lower than planned;
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•
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increases in competition in wholesale energy and capacity markets;
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•
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changes in technology related to energy generation, distribution and consumption and customer usage patterns;
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•
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economic downturns;
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•
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third-party credit risk relating to our sale of generation output and purchase of fuel;
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•
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adverse performance of our decommissioning and defined benefit plan trust fund investments and changes in funding requirements;
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•
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changes in state and federal legislation and regulations, and PSE&G’s ability to recover costs and earn returns on authorized investments;
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•
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the impact of any future rate proceedings;
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•
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risks associated with our ownership and operation of nuclear facilities, including regulatory risks, such as compliance with the Atomic Energy Act and trade control, environmental and other regulations, as well as financial, environmental and health and safety risks;
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•
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the impact on our New Jersey nuclear plants of the failure of such plants to be selected to participate in the Zero Emissions Certificate (ZEC) program or adverse changes to the capacity market construct;
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•
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adverse changes in energy industry laws, policies and regulations, including market structures and transmission planning;
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•
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changes in federal and state environmental regulations and enforcement;
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•
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delays in receipt of, or an inability to receive, necessary licenses and permits;
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•
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adverse outcomes of any legal, regulatory or other proceeding, settlement, investigation or claim applicable to us and/or the energy industry;
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•
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changes in tax laws and regulations;
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•
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the impact of our holding company structure on our ability to meet our corporate funding needs, service debt and pay dividends;
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•
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lack of growth or slower growth in the number of customers or changes in customer demand;
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•
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any inability of Power to meet its commitments under forward sale obligations;
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•
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reliance on transmission facilities that we do not own or control and the impact on our ability to maintain adequate transmission capacity;
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•
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any inability to successfully develop, obtain regulatory approval for, or construct generation, transmission and distribution projects;
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•
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any equipment failures, accidents, severe weather events or other incidents that impact our ability to provide safe and reliable service to our customers;
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•
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our inability to exercise control over the operations of generation facilities in which we do not maintain a controlling interest;
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•
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any inability to recover the carrying amount of our long-lived assets and leveraged leases;
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•
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any inability to maintain sufficient liquidity;
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•
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any inability to realize anticipated tax benefits or retain tax credits;
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•
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challenges associated with recruitment and/or retention of key executives and a qualified workforce;
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•
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the impact of our covenants in our debt instruments on our operations; and
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•
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the impact of acts of terrorism, cybersecurity attacks or intrusions.
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PSE&G
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Power
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A New Jersey corporation, incorporated in 1924, which is a franchised public utility in New Jersey. It is also the provider of last resort for gas and electric commodity service for end users in its service territory.
Earns revenues from its regulated rate tariffs under which it provides electric transmission and electric and gas distribution to residential, commercial and industrial customers in its service territory. It also offers appliance services and repairs to customers throughout its service territory.
Also invests in regulated solar generation projects and regulated energy efficiency and related programs in New Jersey.
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A Delaware limited liability company formed in 1999 as a result of the deregulation and restructuring of the electric power industry in New Jersey. It integrates the operations of its merchant nuclear and fossil generating assets with its power marketing businesses and fuel supply functions through competitive energy sales in well-developed energy markets.
Earns revenues from the generation and marketing of power and natural gas to hedge business risks and optimize the value of its portfolio of power plants, other contractual arrangements and oil and gas storage facilities. This is achieved primarily by selling power and transacting in natural gas and other energy-related products, on the spot market or using short-term or long-term contracts for physical and financial products.
Also earns revenues from solar generation facilities under long-term sales contracts for power and environmental products.
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•
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Business Operations and Strategy
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•
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Competitive Environment
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•
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Employee Relations
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•
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Regulatory Issues
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•
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Environmental Matters
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•
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Transmission
—the movement of electricity at high voltage from generating plants to substations and transformers, where it is then reduced to a lower voltage for distribution to homes, businesses and industrial customers. Our
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•
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Distribution
—the delivery of electricity and gas to the retail customer’s home, business or industrial facility. Our revenues for these services are based upon tariffs approved by the New Jersey Board of Public Utilities (BPU).
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•
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programs to help finance the installation of solar power systems throughout our electric service area, and
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•
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programs to develop, own and operate solar power systems.
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(A)
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Excludes sales from Gas rate classes that do not impact margin, specifically Contract, Non-Firm Transportation, Cogeneration Interruptible and Interruptible Services.
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•
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Energy
—the electrical output produced by generation plants that is ultimately delivered to customers for use in lighting, heating, air conditioning and operation of other electrical equipment. Energy is our principal product and is priced on a usage basis, typically in cents per kilowatt hour (kWh) or dollars per megawatt hour (MWh).
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•
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Capacity
—distinct from energy, capacity is a market commitment that a given generation unit will be available to an Independent System Operator (ISO) for dispatch to produce energy when it is needed to meet system demand. Capacity is typically priced in dollars per MW for a given sale period (e.g. day or month).
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•
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Ancillary Services
—related activities supplied by generation unit owners to the wholesale market that are required by the ISO to ensure the safe and reliable operation of the bulk power system. Owners of generation units may bid units into the ancillary services market in return for compensatory payments. Costs to pay generators for ancillary services are recovered through charges collected from market participants.
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•
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Congestion and Renewable Energy Credits
—Congestion credits (or Financial Transmission Rights) are financial instruments that entitle the holder to a stream of revenues (or charges) based on the hourly congestion price differences across a transmission path. Renewable Energy Credits (RECs) are obtained through Power’s owned renewable generation or purchased in the open market. Electric suppliers of load are required to deliver a certain amount or percentage of their delivered power from renewable resources as mandated by applicable regulatory requirements.
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•
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Generation Capacity
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Generation by Fuel Type (A)
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Actual 2018
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Nuclear:
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New Jersey facilities
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37%
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Pennsylvania facilities
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19%
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Fossil:
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Natural Gas and Oil:
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New Jersey facilities
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21%
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New York facilities
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9%
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Maryland facilities
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4%
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Connecticut facilities
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—%
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(B)
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Coal:
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Pennsylvania facilities
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10%
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Connecticut facilities
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—%
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(B)
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Total
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100%
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(A)
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Excludes pumped storage, solar facilities and fossil generation in Hawaii which account for less than
2.5
percent of total generation.
|
•
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Generation Dispatch
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•
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Base Load Units
run the most and typically are called to operate whenever they are available. These units generally derive revenues from both energy and capacity sales. Variable operating costs are low due to the combination of highly efficient operations and the use of relatively lower-cost fuels. Performance is generally measured by the unit’s “capacity factor,” or the ratio of the actual output to the theoretical maximum output. In
2018
, the base load capacity factors for the following units were:
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Unit
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2018
Capacity
Factor
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Nuclear
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Salem Unit 1
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97.9%
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Salem Unit 2
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84.6%
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Hope Creek
|
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88.8%
|
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Peach Bottom Unit 2
|
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93.4%
|
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Peach Bottom Unit 3
|
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94.2%
|
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Coal
|
|
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Keystone
|
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83.4%
|
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Conemaugh
|
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76.9%
|
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|
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•
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Load Following Units’
operating costs are generally higher per unit of output than for base load units due to the use of higher-cost fuels such as oil, natural gas and, in some cases, coal or lower overall unit efficiency. These units usually have more flexible operating characteristics than base load units which enable them to more easily follow fluctuations in load. They operate less frequently than base load units and derive revenues from energy, capacity and ancillary services.
|
•
|
Peaking Units
run the least amount of time and in some cases may utilize higher-priced fuels. These units typically start very quickly in response to system needs. Costs per unit of output tend to be higher than for base load units given the combination of higher heat rates and fuel costs. The majority of revenues are from capacity and ancillary service sales. The characteristics of these units enable them to capture energy revenues during periods of high energy prices.
|
•
|
Nuclear Fuel Supply
—We have long-term contracts for nuclear fuel. These contracts provide for:
|
•
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purchase of uranium (concentrates and uranium hexafluoride),
|
•
|
conversion of uranium concentrates to uranium hexafluoride,
|
•
|
enrichment of uranium hexafluoride, and
|
•
|
fabrication of nuclear fuel assemblies.
|
•
|
Coal Supply
—The Keystone, Conemaugh and Bridgeport Harbor 3 (BH3) stations operate on coal. Coal is delivered to these units through a combination of rail, truck, barge and ocean shipments.
|
•
|
Gas Supply
—Natural gas is the primary fuel for the bulk of our load following and peaking fleet. We purchase gas directly from natural gas producers and marketers. These supplies are transported to New Jersey by
four
interstate pipelines with which we have contracted. In addition, we have firm gas transportation contracted for this winter season to serve a portion of the gas requirements for our Bethlehem Energy Center (BEC) in New York and hold year-round firm gas transportation to serve the majority of the requirements of Keys in Maryland.
|
•
|
Oil
—Oil is used as the primary fuel for
one
load following steam unit and
four
combustion turbine peaking units and can be used as an alternate fuel by several load following and peaking units that have a dual-fuel capability. Oil for operations is drawn from on-site storage and is generally purchased on the spot market and delivered by truck or barge.
|
•
|
PJM Regional Transmission Organization
—PJM conducts the largest centrally dispatched energy market in North America. It serves over
65 million
people, nearly
20%
of the total United States population, and has a record peak demand of
165,492
MW. The PJM Interconnection coordinates the movement of electricity through all or parts of Delaware, Illinois, Indiana, Kentucky, Maryland, Michigan, New Jersey, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia and the District of Columbia. The majority of our generating stations operate in PJM.
|
•
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New York
—The New York ISO (NYISO) is the market coordinator for New York State and is responsible for managing the New York Power Pool and for administering its energy marketplace. This service area has a population of about
19 million
and a record peak demand of
33,956
MW. Our BEC operates in New York.
|
•
|
New England
—The ISO-New England (ISO-NE) is the market coordinator for the New England Power Pool and for administering its energy marketplace which covers Maine, New Hampshire, Vermont, Massachusetts, Connecticut and Rhode Island. This service area has a population of about
15 million
and a record peak demand of
28,130
MW. Our Bridgeport and New Haven stations operate in Connecticut.
|
•
|
load and demand,
|
•
|
availability of generating capacity (including retirements, additions, derates and forced outage rates),
|
•
|
capacity imports from external regions,
|
•
|
transmission capability between zones,
|
•
|
available amounts of demand response resources,
|
•
|
pricing mechanisms, including potentially increasing the number of zones to create more pricing sensitivity to changes in supply and demand, as well as other potential changes that PJM and the other ISOs may propose over time, and
|
•
|
legislative and/or regulatory actions impacting the capacity auction or that permit subsidized local electric power generation.
|
|
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|
|
|
|
|
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Load Zone ($/MWh)
|
|
2016-2019
|
|
2017-2020
|
|
2018-2021
|
|
2019-2022
|
|
|
PSE&G
|
|
$96.38
|
|
$90.78
|
|
$91.77
|
|
$98.04
|
|
|
Jersey Central Power & Light Company (JCP&L)
|
|
$74.85
|
|
$69.08
|
|
$73.11
|
|
$77.15
|
|
|
Atlantic City Electric Company
|
|
$82.14
|
|
$75.49
|
|
$81.23
|
|
$87.40
|
|
|
Rockland Electric Company
|
|
$85.02
|
|
$80.50
|
|
$85.94
|
|
$88.03
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Base Load Generation
|
|
2019
|
|
2020
|
|
2021
|
|
|
Generation Sales
|
|
100%
|
|
95%-100%
|
|
30%-35%
|
|
|
|
|
|
|
|
|
|
|
•
|
merchant generators,
|
•
|
domestic and multi-national utility generators,
|
•
|
energy marketers and retailers,
|
•
|
private equity firms, banks and other financial entities,
|
•
|
fuel supply companies, and
|
•
|
affiliates of other industrial companies.
|
|
|
|
|
|
|
|
|
|
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|
||||
|
Employees as of December 31, 2018
|
|
||||||||||||
|
|
|
PSE&G
|
|
Power
|
|
PSEG LI
|
|
Services
|
|
||||
|
Non-Union
|
|
2,003
|
|
|
1,057
|
|
|
899
|
|
|
1,041
|
|
|
|
Union
|
|
5,315
|
|
|
1,065
|
|
|
1,510
|
|
|
255
|
|
|
|
Total Employees
|
|
7,318
|
|
|
2,122
|
|
|
2,409
|
|
|
1,296
|
|
|
|
|
|
|
|
|
|
|
|
|
|
•
|
Regulation of Wholesale Sales—Generation/Market Issues/Market Power
|
•
|
Energy Clearing Prices
|
•
|
Capacity Market Issues
|
•
|
Transmission Regulation
|
•
|
Compliance
|
•
|
air pollution control,
|
•
|
climate change,
|
•
|
water pollution control,
|
•
|
hazardous substance liability, and
|
•
|
fuel and waste disposal.
|
|
|
|
|
|
|
|
Name
|
|
Age as of
December 31,
2018
|
|
Office
|
|
Effective Date
First Elected to
Present Position
|
|
|
|
|
|
|
|
Ralph Izzo
|
|
61
|
|
Chairman of the Board, President and
Chief Executive Officer (PSEG)
|
|
April 2007 to present
|
|
|
|
|
Chairman of the Board and Chief Executive Officer (PSE&G)
|
|
April 2007 to present
|
|
|
|
|
Chairman of the Board and Chief Executive Officer (Power)
|
|
April 2007 to present
|
|
|
|
|
Chairman of the Board and Chief Executive Officer (Energy Holdings)
|
|
April 2007 to present
|
|
|
|
|
Chairman of the Board and Chief Executive Officer (Services)
|
|
January 2010 to present
|
|
|
|
|
|
|
|
Daniel J. Cregg
|
|
55
|
|
Executive Vice President and CFO (PSEG)
|
|
October 2015 to present
|
|
|
|
|
Executive Vice President and CFO (PSE&G)
|
|
October 2015 to present
|
|
|
|
|
Executive Vice President and CFO (Power)
|
|
October 2015 to present
|
|
|
|
|
Vice President-Finance (PSE&G)
|
|
June 2013 to October 2015
|
|
|
|
|
Vice President-Finance (Power)
|
|
December 2011 to June 2013
|
|
|
|
|
|
|
|
David M. Daly
|
|
57
|
|
President and Chief Operating Officer (PSE&G)
|
|
October 2017 to present
|
|
|
|
|
Chairman of the Board of PSEG Long Island LLC
|
|
October 2017 to present
|
|
|
|
|
President and Chief Operating Officer (PSEG Long Island LLC)
|
|
October 2013 to October 2017
|
|
|
|
|
|
|
|
Ralph A. LaRossa
|
|
55
|
|
President and Chief Operating Officer (Power)
|
|
October 2017 to present
|
|
|
|
|
President and Chief Operating Officer (PSE&G)
|
|
October 2006 to October 2017
|
|
|
|
|
Chairman of the Board of PSEG Long Island LLC
|
|
October 2013 to October 2017
|
|
|
|
|
|
|
|
Derek M. DiRisio
|
|
54
|
|
President (Services)
|
|
August 2014 to present
|
|
|
|
|
Vice President and Controller (PSEG)
|
|
January 2007 to August 2014
|
|
|
|
|
Vice President and Controller (PSE&G)
|
|
January 2007 to August 2014
|
|
|
|
|
Vice President and Controller (Power)
|
|
January 2007 to August 2014
|
|
|
|
|
Vice President and Controller (Energy Holdings)
|
|
January 2007 to August 2014
|
|
|
|
|
Vice President and Controller (Services)
|
|
January 2007 to August 2014
|
|
|
|
|
|
|
|
Tamara L. Linde
|
|
54
|
|
Executive Vice President and General Counsel (PSEG)
|
|
July 2014 to present
|
|
|
|
|
Executive Vice President and General Counsel (PSE&G)
|
|
July 2014 to present
|
|
|
|
|
Executive Vice President and General Counsel (Power)
|
|
July 2014 to present
|
|
|
|
|
Vice President - Regulatory (Services)
|
|
December 2006 to July 2014
|
|
|
|
|
|
|
|
Stuart J. Black
|
|
56
|
|
Vice President and Controller (PSEG)
|
|
August 2014 to present
|
|
|
|
|
Vice President and Controller (PSE&G)
|
|
August 2014 to present
|
|
|
|
|
Vice President and Controller (Power)
|
|
August 2014 to present
|
|
|
|
|
Vice President (Services) and Assistant Controller (Power)
|
|
March 2010 to August 2014
|
|
|
|
|
|
|
|
•
|
transportation may be unavailable if pipeline infrastructure is damaged or disabled;
|
•
|
pipeline tariff changes may adversely affect our ability to, or cost to, deliver such fuels;
|
•
|
creditworthiness of third-party suppliers, defaults by third-party suppliers on supply obligations and our ability to replace supplies currently under contract may delay or prevent timely delivery;
|
•
|
market liquidity for physical supplies of such fuels or availability of related services (e.g. storage) may be insufficient or available only at prices that are not acceptable to us;
|
•
|
variation in the quality of such fuels may adversely affect our power plant operations;
|
•
|
legislative or regulatory actions or requirements, including those related to pipeline integrity inspections, may increase the cost of such fuels;
|
•
|
fuel supplies diverted to residential heating may limit the availability of such fuels for our power plants; and
|
•
|
the loss of critical infrastructure, terrorist attacks (including cybersecurity breaches) or catastrophic events such as fires, earthquakes, explosions, floods, severe storms or other similar occurrences could impede the delivery of such fuels.
|
•
|
increases and decreases in generation capacity, including the addition of new supplies of power as a result of the development of new power plants, expansion of existing power plants or additional transmission capacity;
|
•
|
power transmission or fuel transportation capacity constraints or inefficiencies;
|
•
|
power supply disruptions, including power plant outages and transmission disruptions;
|
•
|
weather conditions, particularly unusually mild summers or warm winters in our market areas;
|
•
|
quarterly and seasonal fluctuations;
|
•
|
economic and political conditions that could negatively impact the demand for power;
|
•
|
changes in the supply of, and demand for, energy commodities;
|
•
|
development of new fuels or new technologies for the production or storage of power;
|
•
|
federal and state regulations and actions of the ISOs; and
|
•
|
federal and state power, market and environmental regulation and legislation, including financial incentives for new renewable energy generation capacity that could lead to oversupply.
|
•
|
prevent construction of new facilities,
|
•
|
limit or prevent continued operation of existing facilities,
|
•
|
limit or prevent the sale of energy from these facilities, or
|
•
|
result in significant additional costs,
|
•
|
the impacts of economic downturns, including increased unemployment and less demand from C&I customers;
|
•
|
regulatory incentives to reduce energy consumption;
|
•
|
mandated energy efficiency measures;
|
•
|
DSM tools;
|
•
|
technological advances; and
|
•
|
a shift in the composition of our customer base from C&I customers to residential customers.
|
•
|
breakdown or failure of equipment, information technology, processes or management effectiveness;
|
•
|
disruptions in the transmission of electricity;
|
•
|
labor disputes or work stoppages;
|
•
|
fuel supply interruptions;
|
•
|
transportation constraints;
|
•
|
limitations which may be imposed by environmental or other regulatory requirements; and
|
•
|
operator error, terrorist attacks (including cybersecurity breaches) or catastrophic events such as fires, earthquakes, explosions, floods, severe storms or other similar occurrences.
|
•
|
obtain necessary governmental and regulatory approvals;
|
•
|
obtain environmental permits and approvals;
|
•
|
obtain community support for such projects to avoid delays in the receipt of permits and approvals from regulatory authorities;
|
•
|
complete such projects within budgets and on commercially reasonable terms and conditions;
|
•
|
obtain any necessary debt financing on acceptable terms and/or necessary governmental financial incentives;
|
•
|
ensure that contracting parties, including suppliers, perform under their contracts in a timely and cost effective manner; and
|
•
|
at PSE&G, recover the related costs through rates.
|
•
|
general economic and capital market conditions;
|
•
|
the availability of credit from banks and other financial institutions;
|
•
|
tax, regulatory and securities law developments;
|
•
|
for PSE&G, our ability to obtain necessary regulatory approvals for the incurrence of additional indebtedness;
|
•
|
investor confidence in us and our industry;
|
•
|
our current level of indebtedness and compliance with covenants in our debt agreements;
|
•
|
the success of current projects and the quality of new projects;
|
•
|
our current and future capital structure;
|
•
|
our financial performance and the continued reliable operation of our business; and
|
•
|
maintenance of our investment grade credit ratings.
|
•
|
disruption of the operation of our assets, the fuel supply chain and the power grid,
|
•
|
theft of confidential company, employee, shareholder, vendor or customer information, which may cause us to be in breach of certain covenants and contractual obligations,
|
•
|
general business system and process interruption or compromise, including preventing us from servicing our customers, collecting revenues or the ability to record, process and/or report financial information correctly, and
|
•
|
breaches of vendors’ infrastructures where our confidential information is stored.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Name
|
|
Location
|
|
Total
Capacity
(MW)
|
|
% Owned
|
|
Owned
Capacity
(MW)
|
|
Principal
Fuels
Used
|
|
||
|
Steam:
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Keystone (A)
|
|
PA
|
|
1,711
|
|
|
23%
|
|
391
|
|
|
Coal
|
|
|
Conemaugh (A)
|
|
PA
|
|
1,711
|
|
|
23%
|
|
385
|
|
|
Coal
|
|
|
Bridgeport Harbor
|
|
CT
|
|
383
|
|
|
100%
|
|
383
|
|
|
Coal
|
|
|
New Haven Harbor
|
|
CT
|
|
448
|
|
|
100%
|
|
448
|
|
|
Oil/Gas
|
|
|
Total Steam
|
|
|
|
4,253
|
|
|
|
|
1,607
|
|
|
|
|
|
Nuclear:
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Hope Creek
|
|
NJ
|
|
1,173
|
|
|
100%
|
|
1,173
|
|
|
Nuclear
|
|
|
Salem 1 & 2
|
|
NJ
|
|
2,278
|
|
|
57%
|
|
1,308
|
|
|
Nuclear
|
|
|
Peach Bottom 2 & 3 (B)
|
|
PA
|
|
2,450
|
|
|
50%
|
|
1,225
|
|
|
Nuclear
|
|
|
Total Nuclear
|
|
|
|
5,901
|
|
|
|
|
3,706
|
|
|
|
|
|
Combined Cycle:
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Keys (C)
|
|
MD
|
|
761
|
|
|
100%
|
|
761
|
|
|
Gas
|
|
|
Bergen
|
|
NJ
|
|
1,229
|
|
|
100%
|
|
1,229
|
|
|
Gas/Oil
|
|
|
Linden
|
|
NJ
|
|
1,300
|
|
|
100%
|
|
1,300
|
|
|
Gas/Oil
|
|
|
Sewaren 7 (D)
|
|
NJ
|
|
538
|
|
|
100%
|
|
538
|
|
|
Gas/Oil
|
|
|
Bethlehem
|
|
NY
|
|
815
|
|
|
100%
|
|
815
|
|
|
Gas
|
|
|
Kalaeloa
|
|
HI
|
|
208
|
|
|
50%
|
|
104
|
|
|
Oil
|
|
|
Total Combined Cycle
|
|
|
|
4,851
|
|
|
|
|
4,747
|
|
|
|
|
|
Combustion Turbine:
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Essex
|
|
NJ
|
|
81
|
|
|
100%
|
|
81
|
|
|
Gas/Oil
|
|
|
Kearny
|
|
NJ
|
|
456
|
|
|
100%
|
|
456
|
|
|
Gas/Oil
|
|
|
Burlington
|
|
NJ
|
|
168
|
|
|
100%
|
|
168
|
|
|
Gas/Oil
|
|
|
Linden
|
|
NJ
|
|
336
|
|
|
100%
|
|
336
|
|
|
Gas/Oil
|
|
|
New Haven Harbor
|
|
CT
|
|
130
|
|
|
100%
|
|
130
|
|
|
Gas/Oil
|
|
|
Bridgeport Harbor
|
|
CT
|
|
17
|
|
|
100%
|
|
17
|
|
|
Oil
|
|
|
Total Combustion Turbine
|
|
|
|
1,188
|
|
|
|
|
1,188
|
|
|
|
|
|
Pumped Storage:
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Yards Creek (E)
|
|
NJ
|
|
420
|
|
|
50%
|
|
210
|
|
|
|
|
|
Total Power Plants
|
|
|
|
16,613
|
|
|
|
|
11,458
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(A)
|
Operated by GenOn Northeast Management Company.
|
(B)
|
Operated by Exelon Generation.
|
(C)
|
Commenced commercial operation in mid-2018.
|
(D)
|
Commenced commercial operation in mid-2018, replacing our 100%-owned steam generation Sewaren Units 1 through 4 that had a 445 MW capacity.
|
(E)
|
Operated by Jersey Central Power & Light Company.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
2013
|
|
2014
|
|
2015
|
|
2016
|
|
2017
|
|
2018
|
|
||||||||||||
|
PSEG
|
|
$
|
100.00
|
|
|
$
|
134.36
|
|
|
$
|
130.62
|
|
|
$
|
153.85
|
|
|
$
|
187.34
|
|
|
$
|
196.09
|
|
|
|
S&P 500
|
|
$
|
100.00
|
|
|
$
|
113.68
|
|
|
$
|
115.24
|
|
|
$
|
129.02
|
|
|
$
|
157.17
|
|
|
$
|
150.27
|
|
|
|
DJ Utilities
|
|
$
|
100.00
|
|
|
$
|
130.65
|
|
|
$
|
126.65
|
|
|
$
|
149.67
|
|
|
$
|
169.65
|
|
|
$
|
173.01
|
|
|
|
S&P Electrics
|
|
$
|
100.00
|
|
|
$
|
128.98
|
|
|
$
|
122.73
|
|
|
$
|
142.72
|
|
|
$
|
160.00
|
|
|
$
|
166.57
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Plan Category
|
|
Number of Securities
to be Issued upon
Exercise of
Outstanding Options,
Warrants and Rights
|
|
Weighted-Average
Exercise Price of
Outstanding
Options, Warrants
and Rights
|
|
Number of Securities
Remaining Available
for Future Issuance
under Equity
Compensation Plans
|
|
||||
|
Long-Term Incentive Plan
|
|
231,933
|
|
|
$
|
33.49
|
|
|
12,992,138
|
|
|
|
Employee Stock Purchase Plan
|
|
—
|
|
|
—
|
|
|
2,888,361
|
|
|
|
|
Total
|
|
231,933
|
|
|
$
|
33.49
|
|
|
15,880,499
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
PSEG
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Years Ended December 31,
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
|
||||||||||
|
|
|
Millions, except Earnings per Share
|
|
||||||||||||||||||
|
Operating Revenues (A)
|
|
$
|
9,696
|
|
|
$
|
9,094
|
|
|
$
|
8,966
|
|
|
$
|
10,415
|
|
|
$
|
10,886
|
|
|
|
Income from Continuing Operations (B)(C)(D)
|
|
$
|
1,438
|
|
|
$
|
1,574
|
|
|
$
|
887
|
|
|
$
|
1,679
|
|
|
$
|
1,518
|
|
|
|
Net Income (B)(C)(D)
|
|
$
|
1,438
|
|
|
$
|
1,574
|
|
|
$
|
887
|
|
|
$
|
1,679
|
|
|
$
|
1,518
|
|
|
|
Earnings per Share:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Income from Continuing Operations
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Basic
|
|
$
|
2.85
|
|
|
$
|
3.12
|
|
|
$
|
1.76
|
|
|
$
|
3.32
|
|
|
$
|
3.00
|
|
|
|
Diluted
|
|
$
|
2.83
|
|
|
$
|
3.10
|
|
|
$
|
1.75
|
|
|
$
|
3.30
|
|
|
$
|
2.99
|
|
|
|
Net Income
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Basic
|
|
$
|
2.85
|
|
|
$
|
3.12
|
|
|
$
|
1.76
|
|
|
$
|
3.32
|
|
|
$
|
3.00
|
|
|
|
Diluted
|
|
$
|
2.83
|
|
|
$
|
3.10
|
|
|
$
|
1.75
|
|
|
$
|
3.30
|
|
|
$
|
2.99
|
|
|
|
Dividends Declared per Share
|
|
$
|
1.80
|
|
|
$
|
1.72
|
|
|
$
|
1.64
|
|
|
$
|
1.56
|
|
|
$
|
1.48
|
|
|
|
As of December 31,
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Total Assets
|
|
$
|
45,326
|
|
|
$
|
42,716
|
|
|
$
|
40,070
|
|
|
$
|
37,535
|
|
|
$
|
35,287
|
|
|
|
Long-Term Obligations (E)
|
|
$
|
13,168
|
|
|
$
|
12,071
|
|
|
$
|
10,897
|
|
|
$
|
8,837
|
|
|
$
|
8,218
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(A)
|
Amounts for 2017 and 2016 have been retrospectively adjusted to reflect new guidance for Revenue from Contracts with Customers adopted on January 1, 2018. Amounts for 2015 and 2014 were not required to be adjusted for this guidance and are therefore not comparative. For additional information, see Item 8. Note 2. Recent Accounting Standards.
|
(B)
|
Income from Continuing Operations and Net Income for
2018
includes after-tax net unrealized losses on equity securities of approximately
$125 million
in accordance with new accounting guidance effective January 1, 2018.
|
(C)
|
Income from Continuing Operations and Net Income include an after-tax gain for
2018
of
$39 million
from the sale of Power’s Hudson and Mercer coal/gas generation plants and after-tax expenses for
2017
and
2016
of
$577 million
and
$396 million
, respectively, related to the early retirement of these plants; after-tax charges for
2018
,
2017
and
2016
totaling
$5 million
,
$45 million
and
$92 million
, respectively, related to investments in REMA’s leveraged leases; and an after-tax insurance recovery for
2015
of
$102 million
for Superstorm Sandy. See Item 8.
Note 4. Early Plant Retirements
,
Note 8. Long-Term Investments
and
Note 9. Financing Receivables
for additional information.
|
(D)
|
Income from Continuing Operations and Net Income for 2017, include the non-cash net income benefit of
$745 million
, primarily resulting from the remeasurement of deferred tax liabilities required due to the enactment of the Tax Act in December 2017. See Item 8.
Note 21. Income Taxes
for additional information for 2017.
|
(E)
|
Includes capital lease obligations.
|
•
|
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 regulated solar generation projects and energy efficiency and related 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 and fuel supply functions through competitive energy sales in well-developed energy markets 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.
|
•
|
utility achieved continued strong reliability and customer satisfaction results, as well as comprehensive storm preparation and restoration efforts, and ongoing cost control,
|
•
|
diverse fuel mix and dispatch flexibility allowed us to generate approximately
56
terawatt hours while addressing fuel availability and price volatility, and
|
•
|
total nuclear fleet achieved a capacity factor of
91.4%
.
|
•
|
maintained sufficient liquidity,
|
•
|
maintained solid investment grade credit ratings, and
|
•
|
increased our indicative annual dividend for
2018
to
$1.80
per share.
|
|
|
|
|
|
|
|
||||
|
|
|
Years Ended December 31,
|
|
||||||
|
|
|
2018
|
|
2017
|
|
||||
|
|
|
Millions, except per share data
|
|
||||||
|
PSE&G
|
|
$
|
1,067
|
|
|
$
|
973
|
|
|
|
Power
|
|
365
|
|
|
479
|
|
|
||
|
Other
|
|
6
|
|
|
122
|
|
|
||
|
PSEG Net Income
|
|
$
|
1,438
|
|
|
$
|
1,574
|
|
|
|
|
|
|
|
|
|
||||
|
PSEG Net Income Per Share (Diluted)
|
|
$
|
2.83
|
|
|
$
|
3.10
|
|
|
|
|
|
|
|
|
|
•
|
made additional investments in T&D infrastructure projects,
|
•
|
continued to execute our GSMP I, Energy Efficiency and other existing BPU-approved utility programs,
|
•
|
received approval for our GSMP II program and filed our proposed ES II and CEF programs, and
|
•
|
commenced commercial operation of Sewaren 7 and Keys generation facilities and continued construction of our BH5 generation project, which is targeted for commercial operation in mid-2019.
|
•
|
focus on controlling costs while maintaining safety, reliability and customer satisfaction and complying with applicable standards and requirements,
|
•
|
successfully manage our energy obligations and re-contract our open supply positions in response to changes in prices and demand,
|
•
|
obtain approval of and execute our utility capital investment program, including ES II, GSMP II, our CEF program 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 of BH5 and our 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 proceedings,
|
•
|
the review by the BPU of our application to select our New Jersey nuclear generation units to receive payments under the ZEC program,
|
•
|
the continuing impacts of the Tax Act and changes in state tax laws, and
|
•
|
the impact of reductions in demand and lower natural gas and electricity prices and increasing environmental compliance costs.
|
•
|
the acquisition, construction or disposition of T&D facilities, clean energy investments and/or generation projects, including offshore wind opportunities,
|
•
|
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, including the operation of T&D facilities outside of our traditional service territory, 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.
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
Years Ended December 31,
|
|
||||||||||
|
|
|
2018
|
|
2017
|
|
2016
|
|
||||||
|
Earnings (Losses)
|
|
Millions
|
|
||||||||||
|
PSE&G
|
|
$
|
1,067
|
|
|
$
|
973
|
|
|
$
|
889
|
|
|
|
Power (A)(B)
|
|
365
|
|
|
479
|
|
|
18
|
|
|
|||
|
Other (B)(C)
|
|
6
|
|
|
122
|
|
|
(20
|
)
|
|
|||
|
PSEG Net Income
|
|
$
|
1,438
|
|
|
$
|
1,574
|
|
|
$
|
887
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
PSEG Net Income Per Share (Diluted)
|
|
$
|
2.83
|
|
|
$
|
3.10
|
|
|
$
|
1.75
|
|
|
|
|
|
|
|
|
|
|
|
(A)
|
Power’s results in 2018 include an after-tax gain of $39 million from the sale of its Hudson and Mercer coal/gas generation plants and after-tax expenses of $577 million and $396 million in 2017 and 2016, respectively, related to
|
(B)
|
Results in 2017 include the non-cash net income benefit of $745 million, including $588 million related to Power and $147 million related to Energy Holdings, resulting from the remeasurement of deferred tax liabilities required due to the enactment of the Tax Act in December 2017.
|
(C)
|
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 totaling $5 million, $45 million and $92 million related to its investments in REMA’s leveraged leases in 2018, 2017 and 2016, respectively. See Item 8.
Note 8. Long-Term Investments
and
Note 9. Financing Receivables
for further information.
|
|
|
|
|
|
|
|
|
|
||||||
|
Years Ended December 31,
|
|
2018
|
|
2017
|
|
2016
|
|
||||||
|
|
|
Millions, after tax
|
|
||||||||||
|
NDT Fund and Related Activity (A) (B)
|
|
$
|
(90
|
)
|
|
$
|
62
|
|
|
$
|
—
|
|
|
|
Non-Trading MTM Gains (Losses) (C)
|
|
$
|
(84
|
)
|
|
$
|
(99
|
)
|
|
$
|
(100
|
)
|
|
|
|
|
|
|
|
|
|
|
(A)
|
NDT Fund Income (Expense) includes gains and losses on NDT securities which are recorded in Net Gains (Losses) on Trust Investments. See Item 8.
Note 10. Trust Investments
for additional information. NDT Fund Income (Expense) also includes interest and dividend income and other costs related to the NDT Fund recorded in Other Income (Deductions), interest accretion expense on Power’s nuclear Asset Retirement Obligation (ARO) recorded in O&M Expense and the depreciation related to the ARO asset recorded in Depreciation and Amortization (D&A) Expense.
|
(B)
|
Net of tax (expense) benefit of
$54 million
,
$(72) million
and
$(5) million
for the years ended
December 31, 2018
,
2017
and
2016
, respectively.
|
(C)
|
Net of tax benefit of
$33 million
,
$68 million
and
$68 million
for the years ended
December 31, 2018
,
2017
and
2016
, respectively.
|
•
|
non-cash Net Income benefits in 2017 related to new tax legislation (See Item 8.
Note 21. Income Taxes
) at Power and Energy Holdings, and
|
•
|
recognition in 2018 of net unrealized losses on equity securities in the NDT Fund in accordance with new accounting guidance effective January 1, 2018 (See Item 8.
Note 2. Recent Accounting Standards
and
Note 10. Trust Investments
),
|
•
|
accelerated depreciation in 2017 related to early retirement of our Hudson and Mercer coal/gas generation units at Power (See Item 8.
Note 4. Early Plant Retirements
),
|
•
|
the favorable impact at Power from the lower federal tax rate effective January 1, 2018, and
|
•
|
higher earnings due to investments in T&D programs and the favorable impact of new rates effective November 1, 2018 as a result of the BPU approval of our distribution base rate proceeding.
|
•
|
non-cash Net Income benefits related to new tax legislation (See Item 8.
Note 21. Income Taxes
) at Power and Energy Holdings,
|
•
|
higher transmission revenues,
|
•
|
higher net NDT gains in 2017, and
|
•
|
lower charges related to investments in certain leveraged leases at Energy Holdings (See Item 8.
Note 8. Long-Term Investments
).
|
•
|
higher charges related to the early retirement of our Hudson and Mercer coal/gas generation units at Power (See Item 8.
Note 4. Early Plant Retirements
), and
|
•
|
lower volumes of energy sold at lower average realized sales prices under the BGS contracts and in the PJM and New England regions.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
Increase /
(Decrease)
|
|
Increase /
(Decrease)
|
|
||||||||||||||||
|
|
|
Years Ended December 31,
|
|
|
|||||||||||||||||||||||
|
|
|
2018
|
|
2017
|
|
2016
|
|
2018 vs. 2017
|
2017 vs. 2016
|
|
|||||||||||||||||
|
|
|
Millions
|
|
Millions
|
|
%
|
|
|
Millions
|
|
%
|
|
|
||||||||||||||
|
Operating Revenues
|
|
$
|
9,696
|
|
|
$
|
9,094
|
|
|
$
|
8,966
|
|
|
$
|
602
|
|
|
7
|
|
|
$
|
128
|
|
|
1
|
|
|
|
Energy Costs
|
|
3,225
|
|
|
2,778
|
|
|
2,901
|
|
|
447
|
|
|
16
|
|
|
(123
|
)
|
|
(4
|
)
|
|
|||||
|
Operation and Maintenance
|
|
3,015
|
|
|
2,901
|
|
|
2,991
|
|
|
114
|
|
|
4
|
|
|
(90
|
)
|
|
(3
|
)
|
|
|||||
|
Depreciation and Amortization
|
|
1,158
|
|
|
1,986
|
|
|
1,476
|
|
|
(828
|
)
|
|
(42
|
)
|
|
510
|
|
|
35
|
|
|
|||||
|
Income from Equity Method Investments
|
|
15
|
|
|
14
|
|
|
11
|
|
|
1
|
|
|
7
|
|
|
3
|
|
|
27
|
|
|
|||||
|
Net Gains (Losses) on Trust Investments
|
|
(143
|
)
|
|
134
|
|
|
(6
|
)
|
|
(277
|
)
|
|
N/A
|
|
|
140
|
|
|
N/A
|
|
|
|||||
|
Other Income (Deductions)
|
|
85
|
|
|
82
|
|
|
102
|
|
|
3
|
|
|
4
|
|
|
(20
|
)
|
|
(20
|
)
|
|
|||||
|
Non-Operating Pension and OPEB Credits (Costs)
|
|
76
|
|
|
—
|
|
|
(22
|
)
|
|
76
|
|
|
N/A
|
|
|
22
|
|
|
N/A
|
|
|
|||||
|
Interest Expense
|
|
476
|
|
|
391
|
|
|
385
|
|
|
85
|
|
|
22
|
|
|
6
|
|
|
2
|
|
|
|||||
|
Income Tax (Benefit) Expense
|
|
417
|
|
|
(306
|
)
|
|
411
|
|
|
723
|
|
|
N/A
|
|
|
(717
|
)
|
|
N/A
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
Years Ended December 31,
|
|
Increase /
(Decrease)
|
|
Increase /
(Decrease)
|
|
||||||||||||||||||||
|
|
|
2018
|
|
2017
|
|
2016
|
|
2018 vs. 2017
|
2017 vs. 2016
|
|
|||||||||||||||||
|
|
|
Millions
|
|
Millions
|
|
%
|
|
|
Millions
|
|
%
|
|
|
||||||||||||||
|
Operating Revenues
|
|
$
|
6,471
|
|
|
$
|
6,324
|
|
|
$
|
6,303
|
|
|
$
|
147
|
|
|
2
|
|
|
$
|
21
|
|
|
—
|
|
|
|
Energy Costs
|
|
2,520
|
|
|
2,421
|
|
|
2,644
|
|
|
99
|
|
|
4
|
|
|
(223
|
)
|
|
(8
|
)
|
|
|||||
|
Operation and Maintenance
|
|
1,575
|
|
|
1,458
|
|
|
1,465
|
|
|
117
|
|
|
8
|
|
|
(7
|
)
|
|
—
|
|
|
|||||
|
Depreciation and Amortization
|
|
770
|
|
|
685
|
|
|
565
|
|
|
85
|
|
|
12
|
|
|
120
|
|
|
21
|
|
|
|||||
|
Net Gains (Losses) on Trust Investments
|
|
(1
|
)
|
|
2
|
|
|
—
|
|
|
(3
|
)
|
|
N/A
|
|
|
2
|
|
|
N/A
|
|
|
|||||
|
Other Income (Deductions)
|
|
80
|
|
|
85
|
|
|
79
|
|
|
(5
|
)
|
|
(6
|
)
|
|
6
|
|
|
8
|
|
|
|||||
|
Non-Operating Pension and OPEB Credits (Costs)
|
|
59
|
|
|
(8
|
)
|
|
(15
|
)
|
|
67
|
|
|
N/A
|
|
|
7
|
|
|
(47
|
)
|
|
|||||
|
Interest Expense
|
|
333
|
|
|
303
|
|
|
289
|
|
|
30
|
|
|
10
|
|
|
14
|
|
|
5
|
|
|
|||||
|
Income Tax Expense
|
|
344
|
|
|
563
|
|
|
515
|
|
|
(219
|
)
|
|
(39
|
)
|
|
48
|
|
|
9
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
•
|
Transmission revenues increased
$180 million
due to higher revenue requirements calculated through our transmission formula rate, primarily to recover required investments.
|
•
|
Gas distribution revenues
increased
$67 million
due to
$63 million
from
higher sales volumes
,
$36 million
from the inclusion of the GSMP I in base rates,
$25 million
from an increase in the distribution tariff rates effective November 1, 2018 and
$2 million
in higher collections of Green Program Recovery Charges (GPRC). These increases were partially offset by
lower
Weather Normalization Clause (WNC) revenues of
$31 million
, a
$26 million
reduction for Tax Adjustment Credits (TAC) and a
$2 million
reduction in ES I collections.
|
•
|
Electric distribution revenues increased
$62 million
due primarily to a
$49 million
increase in sales volume, a
$17 million
increase in ES I collections,
$6 million
from an increase in the distribution tariff rates effective November 1, 2018 and
$4 million
in higher collections of GPRC. These increases were partially offset by a reduction of
$14 million
in TAC.
|
•
|
Transmission, electric distribution and gas distribution revenue requirements were
$265 million
lower as a result of rate reductions due to the Tax Act which reduced the corporate income tax rate. This decrease is offset in Income Tax Expense.
|
•
|
Electric revenues increased
$73 million
due to
$67 million
in
higher net BGS revenues
reflecting
$148 million
from
higher BGS sales volumes
partially offset by
$81 million
from lower prices, and
$6 million
in
higher revenues
from solar renewable energy credit (SREC) sales.
|
•
|
Gas revenues
increased
$26 million
due to
$65 million
from higher BGSS sales volumes, which were partially offset by
lower
BGSS prices of
$42 million
, and
$3 million
in higher BGSS Asset Charges.
|
•
|
Transmission revenues were $152 million higher due to higher revenue requirements calculated through our transmission formula rate, primarily to recover required investments.
|
•
|
Gas distribution revenues increased $30 million due to a $16 million increase due to Energy Strong I, $10 million from inclusion of the GSMP I in base rates, $4 million in higher collections of GPRC and an increase of $2 million due to higher sales volumes. These increases were partially offset by lower WNC revenues of $2 million.
|
•
|
Electric distribution revenues decreased $16 million due primarily to a $28 million decrease in sales volume and $14 million in lower collections of GPRC, partially offset by a $26 million increase in Energy Strong I revenues.
|
•
|
Electric revenues decreased $288 million due to $199 million in lower BGS revenues reflecting $109 million from lower sales volumes and $90 million from lower prices, $61 million in lower collections of Non-Utility Generation (NUG) Charges due primarily to lower prices, a $14 million decrease from sales of SRECs and $14 million in lower revenues from the decreased sales volume of NUG energy.
|
•
|
Gas revenues increased $65 million due to higher BGSS prices of $68 million and $2 million from higher sales volumes, partially offset by $5 million in lower BGSS Asset Charges.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
Years Ended December 31,
|
|
Increase /
(Decrease)
|
|
Increase /
(Decrease)
|
|
||||||||||||||||||||
|
|
|
2018
|
|
2017
|
|
2016
|
|
2018 vs. 2017
|
2017 vs. 2016
|
|
|||||||||||||||||
|
|
|
Millions
|
|
Millions
|
|
%
|
|
|
Millions
|
|
%
|
|
|
||||||||||||||
|
Operating Revenues
|
|
$
|
4,146
|
|
|
$
|
3,860
|
|
|
$
|
3,861
|
|
|
$
|
286
|
|
|
7
|
|
|
$
|
(1
|
)
|
|
—
|
|
|
|
Energy Costs
|
|
2,197
|
|
|
1,913
|
|
|
1,824
|
|
|
284
|
|
|
15
|
|
|
89
|
|
|
5
|
|
|
|||||
|
Operation and Maintenance
|
|
999
|
|
|
1,046
|
|
|
1,139
|
|
|
(47
|
)
|
|
(4
|
)
|
|
(93
|
)
|
|
(8
|
)
|
|
|||||
|
Depreciation and Amortization
|
|
354
|
|
|
1,268
|
|
|
881
|
|
|
(914
|
)
|
|
(72
|
)
|
|
387
|
|
|
44
|
|
|
|||||
|
Income from Equity Method Investments
|
|
15
|
|
|
14
|
|
|
11
|
|
|
1
|
|
|
7
|
|
|
3
|
|
|
27
|
|
|
|||||
|
Net Gains (Losses) on Trust Investments
|
|
(140
|
)
|
|
125
|
|
|
(6
|
)
|
|
(265
|
)
|
|
N/A
|
|
|
131
|
|
|
N/A
|
|
|
|||||
|
Other Income (Deductions)
|
|
21
|
|
|
20
|
|
|
23
|
|
|
1
|
|
|
5
|
|
|
(3
|
)
|
|
(13
|
)
|
|
|||||
|
Non-Operating Pension and OPEB Credits (Costs)
|
|
15
|
|
|
8
|
|
|
(4
|
)
|
|
7
|
|
|
88
|
|
|
12
|
|
|
N/A
|
|
|
|||||
|
Interest Expense
|
|
76
|
|
|
50
|
|
|
84
|
|
|
26
|
|
|
52
|
|
|
(34
|
)
|
|
(40
|
)
|
|
|||||
|
Income Tax Expense (Benefit)
|
|
66
|
|
|
(729
|
)
|
|
(61
|
)
|
|
795
|
|
|
N/A
|
|
|
(668
|
)
|
|
N/A
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
•
|
a net increase of $113 million due primarily to higher volumes of electricity sold under wholesale load contracts in the PJM region coupled with the commencement of commercial operations for Keys and Sewaren 7 in mid-2018, partially offset by lower average realized prices and higher purchases for wholesale load contracts in the PJM region,
|
•
|
a net increase of $110 million due to lower MTM net losses in 2018 as compared to 2017. Of this amount, there was a $153 million increase due to gains on positions reclassified to realized upon settlement, partially offset by a net decrease of $43 million due to changes in forward prices,
|
•
|
a net increase of $26 million in capacity revenues due primarily to increases in auction prices in the PJM region,
|
•
|
a net increase of $24 million resulting from a prior year reduction to revenue for excess federal income tax previously collected by Power’s subsidiary, PSEG New Haven LLC, from ratepayers due to the change in federal tax rates, and
|
•
|
a net increase of $7 million due to higher sales related to new solar projects,
|
•
|
partially offset by a decrease of $82 million in electricity sold under our BGS contracts due to lower prices and lower volumes.
|
•
|
an increase of $61 million in sales under the BGSS contract, of which $53 million was due to increases in sales volumes as a result of periods of colder weather in the heating season, coupled with $8 million due to higher average sales prices, and
|
•
|
an increase of $42 million related to sales to third parties, of which $26 million was due to higher sales volumes and $16 million to higher average sales prices,
|
•
|
partially offset by a decrease of $16 million due to net MTM losses in 2018 compared to net gains in 2017.
|
•
|
higher fuel costs of $158 million reflecting utilization of higher volumes of gas and oil in the PJM region, primarily due to the commencement of commercial operations of Keys and Sewaren 7 fossil stations in mid-2018, coupled with higher prices of natural gas in the PJM and New York regions and higher coal costs in the PJM and New England (NE) regions, and
|
•
|
an increase of $40 million due to MTM losses in 2018 as compared to gains in 2017 due to changes in forward prices,
|
•
|
partially offset by a net decrease of $22 million primarily due to a decrease in the volume of energy purchased in the NE region to serve load obligations, and
|
•
|
a net decrease of $14 million due to charges primarily related to additional retirement costs incurred in 2017 associated with the early retirement of the Hudson and Mercer units.
|
•
|
an increase of $75 million related to sales under the BGSS contract due primarily to a $51 million increase in volumes sold due to periods of colder weather during the heating season in 2018 as compared to 2017, and $24 million of higher average gas costs, and
|
•
|
an increase of $38 million related to sales to third parties, of which $25 million was due to an increase in volumes sold coupled with $13 million due to higher average gas costs.
|
•
|
a $67 million decrease at our fossil plants, due primarily to a pre-tax gain of $54 million on the sale of the Hudson and Mercer units in 2018 and associated shutdown costs incurred in 2017, partially offset by higher planned outage costs in 2018 associated with our various other fossil plants,
|
•
|
partially offset by a $22 million net increase at our nuclear facilities primarily due to higher planned outage costs at our 100%-owned Hope Creek nuclear plant in 2018 as compared to our 57%-owned Salem Unit 1 nuclear plant in 2017, coupled with higher accretion directly related to an increase in the nuclear ARO in 2017.
|
•
|
a $964 million decrease primarily due to accelerated depreciation recorded in 2017 for the early retirement of the Hudson and Mercer units,
|
•
|
partially offset by a $23 million increase due to Keys and Sewaren 7 fossil stations being placed into service,
|
•
|
an increase of $12 million in depreciation due to the increase in the nuclear ARO in late 2017, and
|
•
|
a $7 million increase in 2018 due primarily to a higher nuclear asset base from increased capitalized asset retirement costs.
|
•
|
the inclusion in 2018 of $209 million of net unrealized losses on equity investments in the NDT Fund in accordance with new accounting guidance, and
|
•
|
a $64 million decrease in net realized gains on NDT Fund investments,
|
•
|
partially offset by a $12 million decrease in other-than-temporary impairments of equity securities in the NDT Fund.
|
•
|
a decrease of $100 million in electricity sold under our BGS contracts due primarily to lower volumes coupled with lower prices,
|
•
|
a decrease of $41 million in energy sales in the PJM and NE regions due primarily to lower average realized prices,
|
•
|
a decrease of $24 million in revenue expected to be returned to ratepayers associated with excess federal income tax previously collected by Power’s subsidiary, PSEG New Haven LLC, due to the change in federal tax rates effective January 1, 2018,
|
•
|
a decrease of $12 million in operating reserves in the PJM region,
|
•
|
a charge of $10 million due to an increase in the FERC accrual related to the PJM bidding matter,
|
•
|
a decrease of $7 million due to higher MTM losses in 2017 as compared to 2016. Of this amount, $120 million was due to increased forward prices, partially offset by a decrease of $113 million due to lower gains on positions reclassified to realized upon settlement in 2017 as compared to 2016,
|
•
|
partially offset by a net increase of $53 million due primarily to higher volumes of electricity sold under wholesale load contracts in the PJM and NE regions,
|
•
|
a net increase of $18 million in capacity revenues in the PJM and NE regions due to increases in cleared capacity and capacity auction prices, and
|
•
|
an increase of $11 million due to higher sales related to new solar projects.
|
•
|
an increase of $67 million in sales under the BGSS contract, of which $40 million was due to higher average sales prices coupled with a $27 million increase in sales volumes due to periods of colder weather in the heating season,
|
•
|
a net increase of $24 million due to higher MTM gains in 2017 as compared to 2016, and
|
•
|
an increase of $19 million related to sales to third parties, of which $48 million was due to higher average sales prices, partially offset by $29 million of lower volumes sold.
|
•
|
an increase of $50 million related to sales under the BGSS contract, of which $31 million was due to higher average gas costs, coupled with a $19 million increase in volumes sold due to periods of colder weather in the heating season, and
|
•
|
an increase of $16 million related to sales to third parties, of which $44 million was due to higher average gas costs, partially offset by a $28 million decrease in volumes sold.
|
•
|
higher fuel costs of $31 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,
|
•
|
an increase of $17 million due to MTM losses in 2017 as compared to MTM gains in 2016,
|
•
|
a net increase of $17 million primarily due to an increase in the volume of energy purchases in the NE region to serve load obligations, and
|
•
|
a net increase of $10 million primarily due to higher transmission charges resulting from higher rates,
|
•
|
partially offset by a net decrease of $50 million due to charges associated with the announced early retirement of the Mercer and Hudson units in 2016, primarily related to lower coal inventory write-downs in 2017, partially offset by additional retirement costs incurred in 2017.
|
•
|
a $72 million decrease at our fossil plants, due primarily to the retirement of the Hudson and Mercer units and higher planned outage costs in 2016, and
|
•
|
a $35 million net decrease at our nuclear facilities primarily due to lower planned outage costs at our 57%-owned Salem nuclear plants in 2017 as compared to our 100%-owned Hope Creek nuclear plant and Salem Unit 1 nuclear plant in 2016,
|
•
|
partially offset by a $5 million increase of costs related to new solar plants placed into service in 2017.
|
•
|
$346 million of higher depreciation for Hudson and Mercer, primarily due to the accelerated expense related to the early retirement of those units,
|
•
|
a $15 million increase due to the accelerated retirement date for the Bridgeport Harbor unit 3,
|
•
|
an $11 million increase due primarily to a higher nuclear asset base, and
|
•
|
$11 million of higher depreciation due to new solar projects.
|
•
|
a $24 million decrease due to higher interest capitalized for the construction of three new fossil stations: BH5, Sewaren 7 and Keys, and
|
•
|
a net $7 million decrease due to debt maturities in September 2016, partially offset by a debt issuance in June 2016.
|
|
|
|
|
|
|
|
|
|
||||||
|
Company/Facility
|
|
As of December 31, 2018
|
|
||||||||||
|
Total
Facility
|
|
Usage
|
|
Available
Liquidity
|
|
||||||||
|
|
|
Millions
|
|
||||||||||
|
PSEG
|
|
$
|
1,500
|
|
|
$
|
759
|
|
|
$
|
741
|
|
|
|
PSE&G
|
|
600
|
|
|
288
|
|
|
312
|
|
|
|||
|
Power
|
|
2,100
|
|
|
154
|
|
|
1,946
|
|
|
|||
|
Total
|
|
$
|
4,200
|
|
|
$
|
1,201
|
|
|
$
|
2,999
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
Years Ended December 31,
|
|
||||||||||
|
Dividend Payments on Common Stock
|
|
2018
|
|
2017
|
|
2016
|
|
||||||
|
Per Share
|
|
$
|
1.80
|
|
|
$
|
1.72
|
|
|
$
|
1.64
|
|
|
|
in Millions
|
|
$
|
910
|
|
|
$
|
870
|
|
|
$
|
830
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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.
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
2019
|
|
2020
|
|
2021
|
|
||||||
|
|
|
|
|
Millions
|
|
|
|
||||||
|
PSE&G:
|
|
|
|
|
|
|
|
||||||
|
Transmission
|
|
$
|
1,350
|
|
|
$
|
1,145
|
|
|
$
|
875
|
|
|
|
Distribution
|
|
740
|
|
|
820
|
|
|
820
|
|
|
|||
|
Gas System Modernization Program
|
|
420
|
|
|
455
|
|
|
435
|
|
|
|||
|
Solar/Energy Efficiency
|
|
70
|
|
|
55
|
|
|
5
|
|
|
|||
|
Total PSE&G
|
|
$
|
2,580
|
|
|
$
|
2,475
|
|
|
$
|
2,135
|
|
|
|
Power:
|
|
|
|
|
|
|
|
||||||
|
Baseline
|
|
$
|
165
|
|
|
$
|
130
|
|
|
$
|
150
|
|
|
|
Growth Opportunities
|
|
225
|
|
|
20
|
|
|
15
|
|
|
|||
|
Other
|
|
5
|
|
|
15
|
|
|
20
|
|
|
|||
|
Total Power
|
|
$
|
395
|
|
|
$
|
165
|
|
|
$
|
185
|
|
|
|
Other
|
|
$
|
40
|
|
|
$
|
55
|
|
|
$
|
40
|
|
|
|
Total PSEG
|
|
$
|
3,015
|
|
|
$
|
2,695
|
|
|
$
|
2,360
|
|
|
|
|
|
|
|
|
|
|
|
|
•
|
Transmission—investments focused on reliability improvements and replacement of aging infrastructure.
|
•
|
Distribution—investments for new business, reliability improvements, modernization and replacement of equipment that has reached the end of its useful life.
|
•
|
Gas System Modernization Program—Gas Distribution investment program to replace aging infrastructure.
|
•
|
Solar/Energy Efficiency—investments associated with grid-connected solar, solar loan programs and customer energy efficiency programs.
|
•
|
Baseline—investments to replace major parts and enhance operational performance.
|
•
|
Growth Opportunities—investments associated with new construction, including BH5, and with upgrades to increase efficiency and output at combined cycle plants.
|
•
|
Other—includes investments made in response to environmental, regulatory and legal mandates and other capital projects.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
Total
Amount
Committed
|
|
Less
Than
1 Year
|
|
2 - 3
Years
|
|
4 - 5
Years
|
|
Over
5 Years
|
|
||||||||||
|
|
|
Millions
|
|
||||||||||||||||||
|
Contractual Cash Obligations
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Long-Term Recourse Debt Maturities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
PSEG
|
|
$
|
2,450
|
|
|
$
|
750
|
|
|
$
|
1,000
|
|
|
$
|
700
|
|
|
$
|
—
|
|
|
|
PSE&G
|
|
9,258
|
|
|
500
|
|
|
693
|
|
|
825
|
|
|
7,240
|
|
|
|||||
|
Power
|
|
2,850
|
|
|
44
|
|
|
1,356
|
|
|
950
|
|
|
500
|
|
|
|||||
|
Interest on Recourse Debt
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
PSEG
|
|
152
|
|
|
61
|
|
|
72
|
|
|
19
|
|
|
—
|
|
|
|||||
|
PSE&G
|
|
5,564
|
|
|
342
|
|
|
651
|
|
|
609
|
|
|
3,962
|
|
|
|||||
|
Power
|
|
830
|
|
|
134
|
|
|
224
|
|
|
148
|
|
|
324
|
|
|
|||||
|
Operating Leases
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
PSE&G
|
|
118
|
|
|
15
|
|
|
21
|
|
|
16
|
|
|
66
|
|
|
|||||
|
Power
|
|
110
|
|
|
11
|
|
|
26
|
|
|
22
|
|
|
51
|
|
|
|||||
|
Services
|
|
178
|
|
|
14
|
|
|
29
|
|
|
30
|
|
|
105
|
|
|
|||||
|
Other
|
|
5
|
|
|
1
|
|
|
3
|
|
|
1
|
|
|
—
|
|
|
|||||
|
Energy-Related Purchase Commitments
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Power
|
|
2,742
|
|
|
774
|
|
|
918
|
|
|
586
|
|
|
464
|
|
|
|||||
|
Total Contractual Cash Obligations
|
|
$
|
24,257
|
|
|
$
|
2,646
|
|
|
$
|
4,993
|
|
|
$
|
3,906
|
|
|
$
|
12,712
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Liability Payments for Uncertain Tax Positions
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
PSEG
|
|
$
|
112
|
|
|
$
|
112
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
PSE&G
|
|
62
|
|
|
62
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|||||
|
Power
|
|
34
|
|
|
34
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
Assumption
|
|
2018
|
|
|
2017
|
|
|
2016
|
|
|
|
Discount Rate
|
|
4.41
|
%
|
|
3.73
|
%
|
|
4.29
|
%
|
|
|
Expected Rate of Return on Plan Assets
|
|
7.80
|
%
|
|
7.80
|
%
|
|
8.00
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
% Change
|
|
Impact on Pension
Benefit Obligation as of December 31, 2018
|
|
Increase to Pension Expense in 2019
|
|
Increase to
Pension Expense, net of Amounts Capitalized
in 2019
|
|
||||||
|
Assumption
|
|
|
|
Millions
|
|
||||||||||
|
Discount Rate
|
|
(1)%
|
|
$
|
746
|
|
|
$
|
39
|
|
|
$
|
32
|
|
|
|
Expected Rate of Return on Plan Assets
|
|
(1)%
|
|
N/A
|
|
|
$
|
50
|
|
|
$
|
50
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
•
|
estimated forward power and capacity prices in the years after the lease,
|
•
|
related prices of fuel for the plants,
|
•
|
dispatch rates for the plants,
|
•
|
future capital expenditures required to maintain the plants,
|
•
|
future O&M expenses,
|
•
|
discount rates, and
|
•
|
the current estimated economic viability of the plants after the end of the base lease term.
|
•
|
estimation of dates for retirement, which can be dependent on environmental and other legislation,
|
•
|
amounts and timing of future cash expenditures associated with retirement, settlement or remediation activities,
|
•
|
discount rates,
|
•
|
cost escalation rates,
|
•
|
market risk premium,
|
•
|
inflation rates, and
|
•
|
if applicable, past experience with government regulators regarding similar obligations.
|
•
|
financial feasibility and impacts on potential early shutdown,
|
•
|
license renewals,
|
•
|
SAFESTOR alternative, which assumes the nuclear facility can be safely stored and subsequently decommissioned in a period within 60 years after operations,
|
•
|
DECON alternative, which assumes decommissioning activities begin after operations, and
|
•
|
recovery from the federal government of costs incurred for spent nuclear fuel.
|
•
|
A decrease of
1%
in the discount rate would result in a
$32 million
increase in the Nuclear ARO.
|
•
|
An increase of
1%
in the inflation rate would result in a
$260 million
increase in the Nuclear ARO.
|
•
|
If we were not reimbursed by the federal government for spent fuel costs as prescribed under the Nuclear Waste Policy Act, the Nuclear ARO would increase by
$346 million
.
|
•
|
If we would elect or be required to decommission under a DECON alternative at Salem and Hope Creek, the Nuclear ARO would increase by
$635 million
.
|
•
|
If Power were to increase its early shutdown probability to 100% and retire Hope Creek and Salem starting in the Fall of 2019, which is significantly earlier than the end of their current license periods, the Nuclear ARO would increase by
$314 million
. For additional information, see Item 8.
Note 4. Early Plant Retirements
.
|
•
|
past experience regarding similar items with the BPU,
|
•
|
treatment of a similar item in an order by the BPU for another utility,
|
•
|
passage of new legislation, and
|
•
|
recent discussions with the BPU.
|
|
|
|
|
|
|
|
||||
|
|
|
MTM VaR
|
|
||||||
|
|
|
Millions
|
|
||||||
|
Years Ended December 31,
|
|
2018
|
|
2017
|
|
||||
|
|
|
|
|
||||||
|
95% Confidence Level, Loss could exceed VaR one day in 20 days
|
|
|
|
|
|
||||
|
Period End
|
|
$
|
21
|
|
|
$
|
39
|
|
|
|
Average for the Period
|
|
$
|
14
|
|
|
$
|
10
|
|
|
|
High
|
|
$
|
46
|
|
|
$
|
39
|
|
|
|
Low
|
|
$
|
6
|
|
|
$
|
5
|
|
|
|
|
|
|
|
|
|
||||
|
99.5% Confidence Level, Loss could exceed VaR one day in 200 days
|
|
|
|
|
|
||||
|
Period End
|
|
$
|
32
|
|
|
$
|
60
|
|
|
|
Average for the Period
|
|
$
|
22
|
|
|
$
|
15
|
|
|
|
High
|
|
$
|
72
|
|
|
$
|
60
|
|
|
|
Low
|
|
$
|
9
|
|
|
$
|
8
|
|
|
|
|
|
|
|
|
|
•
|
$2 million
of additional annual interest costs related to both the current and long-term portion of long-term debt, and
|
•
|
a
$426 million
decrease in the fair value of debt, including an
$18 million
decrease at PSEG, a
$354 million
decrease at PSE&G and a
$54 million
decrease at Power.
|
•
|
our future contributions to these plans,
|
•
|
our financial position if our accumulated benefit obligation under our pension plans exceeds the fair value of the pension trust funds, and
|
•
|
future earnings, as we could be required to adjust pension expense and the assumed rate of return.
|
|
/s/ DELOITTE & TOUCHE LLP
|
|
Parsippany, New Jersey
|
February 27, 2019
|
|
/s/ DELOITTE & TOUCHE LLP
|
|
Parsippany, New Jersey
|
February 27, 2019
|
|
/s/ DELOITTE & TOUCHE LLP
|
|
Parsippany, New Jersey
|
February 27, 2019
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
Years Ended December 31,
|
|
||||||||||
|
|
|
2018
|
|
2017
|
|
2016
|
|
||||||
|
OPERATING REVENUES
|
|
$
|
9,696
|
|
|
$
|
9,094
|
|
|
$
|
8,966
|
|
|
|
OPERATING EXPENSES
|
|
|
|
|
|
|
|
||||||
|
Energy Costs
|
|
3,225
|
|
|
2,778
|
|
|
2,901
|
|
|
|||
|
Operation and Maintenance
|
|
3,015
|
|
|
2,901
|
|
|
2,991
|
|
|
|||
|
Depreciation and Amortization
|
|
1,158
|
|
|
1,986
|
|
|
1,476
|
|
|
|||
|
Total Operating Expenses
|
|
7,398
|
|
|
7,665
|
|
|
7,368
|
|
|
|||
|
OPERATING INCOME
|
|
2,298
|
|
|
1,429
|
|
|
1,598
|
|
|
|||
|
Income from Equity Method Investments
|
|
15
|
|
|
14
|
|
|
11
|
|
|
|||
|
Net Gains (Losses) on Trust Investments
|
|
(143
|
)
|
|
134
|
|
|
(6
|
)
|
|
|||
|
Other Income (Deductions)
|
|
85
|
|
|
82
|
|
|
102
|
|
|
|||
|
Non-Operating Pension and OPEB Credits (Costs)
|
|
76
|
|
|
—
|
|
|
(22
|
)
|
|
|||
|
Interest Expense
|
|
(476
|
)
|
|
(391
|
)
|
|
(385
|
)
|
|
|||
|
INCOME BEFORE INCOME TAXES
|
|
1,855
|
|
|
1,268
|
|
|
1,298
|
|
|
|||
|
Income Tax Benefit (Expense)
|
|
(417
|
)
|
|
306
|
|
|
(411
|
)
|
|
|||
|
NET INCOME
|
|
$
|
1,438
|
|
|
$
|
1,574
|
|
|
$
|
887
|
|
|
|
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
|
|
|
|
|
|
|
|
||||||
|
BASIC
|
|
504
|
|
|
505
|
|
|
505
|
|
|
|||
|
DILUTED
|
|
507
|
|
|
507
|
|
|
508
|
|
|
|||
|
NET INCOME PER SHARE:
|
|
|
|
|
|
|
|
||||||
|
BASIC
|
|
$
|
2.85
|
|
|
$
|
3.12
|
|
|
$
|
1.76
|
|
|
|
DILUTED
|
|
$
|
2.83
|
|
|
$
|
3.10
|
|
|
$
|
1.75
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
Years Ended December 31,
|
|
|||||||||||
|
|
|
2018
|
|
2017
|
|
2016
|
|
||||||
|
NET INCOME
|
|
$
|
1,438
|
|
|
$
|
1,574
|
|
|
$
|
887
|
|
|
|
Other Comprehensive Income (Loss), net of tax
|
|
|
|
|
|
|
|
||||||
|
Unrealized Gains (Losses) on Available-for-Sale Securities, net of tax (expense) benefit of $11, $(37) and $(41) for the years ended 2018, 2017 and 2016, respectively
|
|
(17
|
)
|
|
44
|
|
|
42
|
|
|
|||
|
Unrealized Gains (Losses) on Cash Flow Hedges, net of tax (expense) benefit of $1, $1 and $(1) for the years ended 2018, 2017 and 2016, respectively
|
|
(1
|
)
|
|
(2
|
)
|
|
2
|
|
|
|||
|
Pension/Other Postretirement Benefit Costs (OPEB) adjustment, net of tax (expense) benefit of $(18), $(4) and $8 for the years ended 2018, 2017 and 2016, respectively
|
|
46
|
|
|
(8
|
)
|
|
(12
|
)
|
|
|||
|
Other Comprehensive Income (Loss), net of tax
|
|
28
|
|
|
34
|
|
|
32
|
|
|
|||
|
COMPREHENSIVE INCOME
|
|
$
|
1,466
|
|
|
$
|
1,608
|
|
|
$
|
919
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
December 31,
|
|
||||||
|
|
2018
|
|
2017
|
|
||||
|
ASSETS
|
|
|||||||
|
CURRENT ASSETS
|
|
|
|
|
||||
|
Cash and Cash Equivalents
|
$
|
177
|
|
|
$
|
313
|
|
|
|
Accounts Receivable, net of allowances of $63 in 2018 and $59 in 2017
|
1,435
|
|
|
1,348
|
|
|
||
|
Tax Receivable
|
242
|
|
|
127
|
|
|
||
|
Unbilled Revenues
|
240
|
|
|
296
|
|
|
||
|
Fuel
|
331
|
|
|
289
|
|
|
||
|
Materials and Supplies, net
|
571
|
|
|
577
|
|
|
||
|
Prepayments
|
94
|
|
|
118
|
|
|
||
|
Derivative Contracts
|
11
|
|
|
29
|
|
|
||
|
Regulatory Assets
|
389
|
|
|
211
|
|
|
||
|
Other
|
17
|
|
|
4
|
|
|
||
|
Total Current Assets
|
3,507
|
|
|
3,312
|
|
|
||
|
PROPERTY, PLANT AND EQUIPMENT
|
44,201
|
|
|
41,231
|
|
|
||
|
Less: Accumulated Depreciation and Amortization
|
(9,838
|
)
|
|
(9,434
|
)
|
|
||
|
Net Property, Plant and Equipment
|
34,363
|
|
|
31,797
|
|
|
||
|
NONCURRENT ASSETS
|
|
|
|
|
||||
|
Regulatory Assets
|
3,399
|
|
|
3,222
|
|
|
||
|
Long-Term Investments
|
896
|
|
|
932
|
|
|
||
|
Nuclear Decommissioning Trust (NDT) Fund
|
1,878
|
|
|
2,133
|
|
|
||
|
Long-Term Receivable of VIEs
|
624
|
|
|
686
|
|
|
||
|
Rabbi Trust Fund
|
224
|
|
|
231
|
|
|
||
|
Goodwill
|
16
|
|
|
16
|
|
|
||
|
Other Intangibles
|
143
|
|
|
114
|
|
|
||
|
Derivative Contracts
|
1
|
|
|
7
|
|
|
||
|
Other
|
275
|
|
|
266
|
|
|
||
|
Total Noncurrent Assets
|
7,456
|
|
|
7,607
|
|
|
||
|
TOTAL ASSETS
|
$
|
45,326
|
|
|
$
|
42,716
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
Years Ended December 31,
|
|
||||||||||
|
|
|
2018
|
|
2017
|
|
2016
|
|
||||||
|
CASH FLOWS FROM OPERATING ACTIVITIES
|
|
|
|
|
|
|
|
||||||
|
Net Income
|
|
$
|
1,438
|
|
|
$
|
1,574
|
|
|
$
|
887
|
|
|
|
Adjustments to Reconcile Net Income to Net Cash Flows from Operating Activities:
|
|
|
|
|
|
|
|
||||||
|
Depreciation and Amortization
|
|
1,158
|
|
|
1,986
|
|
|
1,476
|
|
|
|||
|
Amortization of Nuclear Fuel
|
|
187
|
|
|
199
|
|
|
203
|
|
|
|||
|
Emission Allowances and Renewable Energy Credit (REC) Compliance Accrual
|
|
97
|
|
|
103
|
|
|
109
|
|
|
|||
|
Impairment Costs for Early Plant Retirements
|
|
—
|
|
|
—
|
|
|
102
|
|
|
|||
|
Provision for Deferred Income Taxes (Other than Leases) and ITC
|
|
568
|
|
|
(167
|
)
|
|
474
|
|
|
|||
|
Non-Cash Employee Benefit Plan Costs
|
|
70
|
|
|
89
|
|
|
127
|
|
|
|||
|
Leveraged Lease Income, Adjusted for Rents Received and Deferred Taxes
|
|
(149
|
)
|
|
(159
|
)
|
|
(6
|
)
|
|
|||
|
Gain on Sale of Hudson and Mercer Units
|
|
(54
|
)
|
|
—
|
|
|
—
|
|
|
|||
|
Net (Gain) Loss on Lease Investments
|
|
5
|
|
|
48
|
|
|
92
|
|
|
|||
|
Net Realized and Unrealized (Gains) Losses on Energy Contracts and Other Derivatives
|
|
116
|
|
|
188
|
|
|
183
|
|
|
|||
|
Net Change in Regulatory Assets and Liabilities
|
|
(153
|
)
|
|
(188
|
)
|
|
(138
|
)
|
|
|||
|
Cost of Removal
|
|
(160
|
)
|
|
(107
|
)
|
|
(131
|
)
|
|
|||
|
Net (Gains) Losses and (Income) Expense from NDT Fund
|
|
98
|
|
|
(156
|
)
|
|
(26
|
)
|
|
|||
|
Net Change in Certain Current Assets and Liabilities
|
|
|
|
|
|
|
|
||||||
|
Tax Receivable
|
|
17
|
|
|
65
|
|
|
303
|
|
|
|||
|
Accrued Taxes
|
|
(69
|
)
|
|
16
|
|
|
3
|
|
|
|||
|
Margin Deposit
|
|
(247
|
)
|
|
(90
|
)
|
|
(76
|
)
|
|
|||
|
Other Current Assets and Liabilities
|
|
70
|
|
|
(72
|
)
|
|
(179
|
)
|
|
|||
|
Employee Benefit Plan Funding and Related Payments
|
|
(101
|
)
|
|
(81
|
)
|
|
(103
|
)
|
|
|||
|
Other
|
|
22
|
|
|
12
|
|
|
13
|
|
|
|||
|
Net Cash Provided By (Used In) Operating Activities
|
|
2,913
|
|
|
3,260
|
|
|
3,313
|
|
|
|||
|
CASH FLOWS FROM INVESTING ACTIVITIES
|
|
|
|
|
|
|
|
||||||
|
Additions to Property, Plant and Equipment
|
|
(3,912
|
)
|
|
(4,190
|
)
|
|
(4,199
|
)
|
|
|||
|
Purchase of Emissions Allowances and RECs
|
|
(146
|
)
|
|
(117
|
)
|
|
(99
|
)
|
|
|||
|
Proceeds from Sales of Trust Investments
|
|
1,501
|
|
|
2,319
|
|
|
824
|
|
|
|||
|
Purchases of Trust Investments
|
|
(1,473
|
)
|
|
(2,340
|
)
|
|
(856
|
)
|
|
|||
|
Other
|
|
114
|
|
|
72
|
|
|
82
|
|
|
|||
|
Net Cash Provided By (Used In) Investing Activities
|
|
(3,916
|
)
|
|
(4,256
|
)
|
|
(4,248
|
)
|
|
|||
|
CASH FLOWS FROM FINANCING ACTIVITIES
|
|
|
|
|
|
|
|
||||||
|
Net Change in Commercial Paper and Loans
|
|
474
|
|
|
154
|
|
|
24
|
|
|
|||
|
Issuance of Long-Term Debt
|
|
2,750
|
|
|
2,175
|
|
|
2,675
|
|
|
|||
|
Redemption of Long-Term Debt
|
|
(1,350
|
)
|
|
(500
|
)
|
|
(824
|
)
|
|
|||
|
Cash Dividends Paid on Common Stock
|
|
(910
|
)
|
|
(870
|
)
|
|
(830
|
)
|
|
|||
|
Other
|
|
(77
|
)
|
|
(74
|
)
|
|
(79
|
)
|
|
|||
|
Net Cash Provided By (Used In) Financing Activities
|
|
887
|
|
|
885
|
|
|
966
|
|
|
|||
|
Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash
|
|
(116
|
)
|
|
(111
|
)
|
|
31
|
|
|
|||
|
Cash, Cash Equivalents and Restricted Cash at Beginning of Period
|
|
315
|
|
|
426
|
|
|
395
|
|
|
|||
|
Cash, Cash Equivalents and Restricted Cash at End of Period
|
|
$
|
199
|
|
|
$
|
315
|
|
|
$
|
426
|
|
|
|
Supplemental Disclosure of Cash Flow Information:
|
|
|
|
|
|
|
|
||||||
|
Income Taxes Paid (Received)
|
|
$
|
99
|
|
|
$
|
(8
|
)
|
|
$
|
(245
|
)
|
|
|
Interest Paid, Net of Amounts Capitalized
|
|
$
|
454
|
|
|
$
|
377
|
|
|
$
|
365
|
|
|
|
Accrued Property, Plant and Equipment Expenditures
|
|
$
|
517
|
|
|
$
|
722
|
|
|
$
|
664
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
|
|
Common
Stock
|
|
Treasury
Stock
|
|
Retained
Earnings
|
|
Accumulated
Other
Comprehensive
Income (Loss)
|
|
Noncontrolling Interest
|
|
||||||||||||||||||||
|
|
|
Shs.
|
|
Amount
|
|
Shs.
|
|
Amount
|
|
|
Total
|
|
|||||||||||||||||||
|
Balance as of January 1, 2016
|
|
534
|
|
|
$
|
4,915
|
|
|
(28
|
)
|
|
$
|
(671
|
)
|
|
$
|
9,117
|
|
|
$
|
(295
|
)
|
|
$
|
1
|
|
|
$
|
13,067
|
|
|
|
Net Income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
887
|
|
|
—
|
|
|
—
|
|
|
887
|
|
|
||||||
|
Other Comprehensive Income (Loss), net of tax (expense) benefit of $(34)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
32
|
|
|
—
|
|
|
32
|
|
|
||||||
|
Comprehensive Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
919
|
|
|
|||||||||||||
|
Cash Dividends at $1.64 per share on Common Stock
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(830
|
)
|
|
—
|
|
|
—
|
|
|
(830
|
)
|
|
||||||
|
Other
|
|
—
|
|
|
21
|
|
|
(1
|
)
|
|
(46
|
)
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
(26
|
)
|
|
||||||
|
Balance as of December 31, 2016
|
|
534
|
|
|
$
|
4,936
|
|
|
(29
|
)
|
|
$
|
(717
|
)
|
|
$
|
9,174
|
|
|
$
|
(263
|
)
|
|
$
|
—
|
|
|
$
|
13,130
|
|
|
|
Net Income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,574
|
|
|
—
|
|
|
—
|
|
|
1,574
|
|
|
||||||
|
Other Comprehensive Income (Loss), net of tax (expense) benefit of $(40)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
34
|
|
|
—
|
|
|
34
|
|
|
||||||
|
Comprehensive Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,608
|
|
|
|||||||||||||
|
Cash Dividends at $1.72 per share on Common Stock
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(870
|
)
|
|
—
|
|
|
—
|
|
|
(870
|
)
|
|
||||||
|
Other
|
|
—
|
|
|
25
|
|
|
—
|
|
|
(46
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(21
|
)
|
|
||||||
|
Balance as of December 31, 2017
|
|
534
|
|
|
$
|
4,961
|
|
|
(29
|
)
|
|
$
|
(763
|
)
|
|
$
|
9,878
|
|
|
$
|
(229
|
)
|
|
$
|
—
|
|
|
$
|
13,847
|
|
|
|
Net Income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,438
|
|
|
—
|
|
|
—
|
|
|
1,438
|
|
|
||||||
|
Cumulative Effect Adjustment to Reclassify Unrealized Net Gains on Equity Investments
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
176
|
|
|
(176
|
)
|
|
—
|
|
|
—
|
|
|
||||||
|
Other Comprehensive Income (Loss), net of tax (expense) benefit of $(6)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
28
|
|
|
—
|
|
|
28
|
|
|
||||||
|
Comprehensive Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,466
|
|
|
|||||||||||||
|
Cash Dividends at $1.80 per share on Common Stock
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(910
|
)
|
|
—
|
|
|
—
|
|
|
(910
|
)
|
|
||||||
|
Other
|
|
—
|
|
|
19
|
|
|
(1
|
)
|
|
(45
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(26
|
)
|
|
||||||
|
Balance as of December 31, 2018
|
|
534
|
|
|
$
|
4,980
|
|
|
(30
|
)
|
|
$
|
(808
|
)
|
|
$
|
10,582
|
|
|
$
|
(377
|
)
|
|
$
|
—
|
|
|
$
|
14,377
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
Years Ended December 31,
|
|
||||||||||
|
|
|
2018
|
|
2017
|
|
2016
|
|
||||||
|
OPERATING REVENUES
|
|
$
|
6,471
|
|
|
$
|
6,324
|
|
|
$
|
6,303
|
|
|
|
OPERATING EXPENSES
|
|
|
|
|
|
|
|
||||||
|
Energy Costs
|
|
2,520
|
|
|
2,421
|
|
|
2,644
|
|
|
|||
|
Operation and Maintenance
|
|
1,575
|
|
|
1,458
|
|
|
1,465
|
|
|
|||
|
Depreciation and Amortization
|
|
770
|
|
|
685
|
|
|
565
|
|
|
|||
|
Total Operating Expenses
|
|
4,865
|
|
|
4,564
|
|
|
4,674
|
|
|
|||
|
OPERATING INCOME
|
|
1,606
|
|
|
1,760
|
|
|
1,629
|
|
|
|||
|
Net Gains (Losses) on Trust Investments
|
|
(1
|
)
|
|
2
|
|
|
—
|
|
|
|||
|
Other Income (Deductions)
|
|
80
|
|
|
85
|
|
|
79
|
|
|
|||
|
Non-Operating Pension and OPEB Credits (Costs)
|
|
59
|
|
|
(8
|
)
|
|
(15
|
)
|
|
|||
|
Interest Expense
|
|
(333
|
)
|
|
(303
|
)
|
|
(289
|
)
|
|
|||
|
INCOME BEFORE INCOME TAXES
|
|
1,411
|
|
|
1,536
|
|
|
1,404
|
|
|
|||
|
Income Tax Expense
|
|
(344
|
)
|
|
(563
|
)
|
|
(515
|
)
|
|
|||
|
NET INCOME
|
|
$
|
1,067
|
|
|
$
|
973
|
|
|
$
|
889
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
Years Ended December 31,
|
|
|||||||||||
|
|
|
2018
|
|
2017
|
|
2016
|
|
||||||
|
NET INCOME
|
|
$
|
1,067
|
|
|
$
|
973
|
|
|
$
|
889
|
|
|
|
Other Comprehensive Income (Loss), net of tax
|
|
|
|
|
|
|
|
||||||
|
Unrealized Gains (Losses) on Available-for-Sale Securities, net of tax (expense) benefit of $1, $0 and $0 for the years ended 2018, 2017 and 2016, respectively
|
|
(1
|
)
|
|
(1
|
)
|
|
—
|
|
|
|||
|
COMPREHENSIVE INCOME
|
|
$
|
1,066
|
|
|
$
|
972
|
|
|
$
|
889
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
December 31,
|
|
||||||
|
|
2018
|
|
2017
|
|
||||
|
ASSETS
|
|
|||||||
|
CURRENT ASSETS
|
|
|
|
|
||||
|
Cash and Cash Equivalents
|
$
|
39
|
|
|
$
|
242
|
|
|
|
Accounts Receivable, net of allowances of $63 in 2018 and $59 in 2017
|
879
|
|
|
882
|
|
|
||
|
Tax Receivable
|
20
|
|
|
—
|
|
|
||
|
Accounts Receivable—Affiliated Companies
|
123
|
|
|
—
|
|
|
||
|
Unbilled Revenues
|
240
|
|
|
296
|
|
|
||
|
Materials and Supplies
|
196
|
|
|
197
|
|
|
||
|
Prepayments
|
10
|
|
|
44
|
|
|
||
|
Regulatory Assets
|
389
|
|
|
211
|
|
|
||
|
Other
|
11
|
|
|
4
|
|
|
||
|
Total Current Assets
|
1,907
|
|
|
1,876
|
|
|
||
|
PROPERTY, PLANT AND EQUIPMENT
|
31,633
|
|
|
29,117
|
|
|
||
|
Less: Accumulated Depreciation and Amortization
|
(6,277
|
)
|
|
(6,101
|
)
|
|
||
|
Net Property, Plant and Equipment
|
25,356
|
|
|
23,016
|
|
|
||
|
NONCURRENT ASSETS
|
|
|
|
|
||||
|
Regulatory Assets
|
3,399
|
|
|
3,222
|
|
|
||
|
Long-Term Investments
|
270
|
|
|
280
|
|
|
||
|
Rabbi Trust Fund
|
45
|
|
|
46
|
|
|
||
|
Other
|
132
|
|
|
114
|
|
|
||
|
Total Noncurrent Assets
|
3,846
|
|
|
3,662
|
|
|
||
|
TOTAL ASSETS
|
$
|
31,109
|
|
|
$
|
28,554
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
Years Ended December 31,
|
|
||||||||||
|
|
|
2018
|
|
2017
|
|
2016
|
|
||||||
|
CASH FLOWS FROM OPERATING ACTIVITIES
|
|
|
|
|
|
|
|
||||||
|
Net Income
|
|
$
|
1,067
|
|
|
$
|
973
|
|
|
$
|
889
|
|
|
|
Adjustments to Reconcile Net Income to Net Cash Flows from Operating Activities:
|
|
|
|
|
|
|
|
||||||
|
Depreciation and Amortization
|
|
770
|
|
|
685
|
|
|
565
|
|
|
|||
|
Provision for Deferred Income Taxes and ITC
|
|
405
|
|
|
616
|
|
|
658
|
|
|
|||
|
Non-Cash Employee Benefit Plan Costs
|
|
37
|
|
|
50
|
|
|
72
|
|
|
|||
|
Cost of Removal
|
|
(160
|
)
|
|
(107
|
)
|
|
(131
|
)
|
|
|||
|
Net Change in Other Regulatory Assets and Liabilities
|
|
(153
|
)
|
|
(188
|
)
|
|
(138
|
)
|
|
|||
|
Net Change in Certain Current Assets and Liabilities
|
|
|
|
|
|
|
|
||||||
|
Accounts Receivable and Unbilled Revenues
|
|
65
|
|
|
(106
|
)
|
|
(84
|
)
|
|
|||
|
Materials and Supplies
|
|
1
|
|
|
(13
|
)
|
|
(7
|
)
|
|
|||
|
Prepayments
|
|
14
|
|
|
(35
|
)
|
|
22
|
|
|
|||
|
Accounts Payable
|
|
64
|
|
|
1
|
|
|
(29
|
)
|
|
|||
|
Accounts Receivable/Payable—Affiliated Companies, net
|
|
(139
|
)
|
|
101
|
|
|
199
|
|
|
|||
|
Other Current Assets and Liabilities
|
|
5
|
|
|
15
|
|
|
9
|
|
|
|||
|
Employee Benefit Plan Funding and Related Payments
|
|
(85
|
)
|
|
(68
|
)
|
|
(82
|
)
|
|
|||
|
Other
|
|
(38
|
)
|
|
(86
|
)
|
|
(47
|
)
|
|
|||
|
Net Cash Provided By (Used In) Operating Activities
|
|
1,853
|
|
|
1,838
|
|
|
1,896
|
|
|
|||
|
CASH FLOWS FROM INVESTING ACTIVITIES
|
|
|
|
|
|
|
|
||||||
|
Additions to Property, Plant and Equipment
|
|
(2,896
|
)
|
|
(2,919
|
)
|
|
(2,816
|
)
|
|
|||
|
Proceeds from Sales of Trust Investments
|
|
20
|
|
|
36
|
|
|
22
|
|
|
|||
|
Purchases of Trust Investments
|
|
(22
|
)
|
|
(37
|
)
|
|
(24
|
)
|
|
|||
|
Solar Loan Investments
|
|
(5
|
)
|
|
7
|
|
|
14
|
|
|
|||
|
Other
|
|
9
|
|
|
10
|
|
|
15
|
|
|
|||
|
Net Cash Provided By (Used In) Investing Activities
|
|
(2,894
|
)
|
|
(2,903
|
)
|
|
(2,789
|
)
|
|
|||
|
CASH FLOWS FROM FINANCING ACTIVITIES
|
|
|
|
|
|
|
|
||||||
|
Net Change in Short-Term Debt
|
|
272
|
|
|
—
|
|
|
(153
|
)
|
|
|||
|
Issuance of Long-Term Debt
|
|
1,350
|
|
|
775
|
|
|
1,275
|
|
|
|||
|
Redemption of Long-Term Debt
|
|
(750
|
)
|
|
—
|
|
|
(271
|
)
|
|
|||
|
Contributed Capital
|
|
—
|
|
|
150
|
|
|
250
|
|
|
|||
|
Other
|
|
(14
|
)
|
|
(9
|
)
|
|
(14
|
)
|
|
|||
|
Net Cash Provided By (Used In) Financing Activities
|
|
858
|
|
|
916
|
|
|
1,087
|
|
|
|||
|
Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash
|
|
(183
|
)
|
|
(149
|
)
|
|
194
|
|
|
|||
|
Cash, Cash Equivalents and Restricted Cash at Beginning of Period
|
|
244
|
|
|
393
|
|
|
199
|
|
|
|||
|
Cash, Cash Equivalents and Restricted Cash at End of Period
|
|
$
|
61
|
|
|
$
|
244
|
|
|
$
|
393
|
|
|
|
Supplemental Disclosure of Cash Flow Information:
|
|
|
|
|
|
|
|
||||||
|
Income Taxes Paid (Received)
|
|
$
|
94
|
|
|
$
|
(104
|
)
|
|
$
|
(295
|
)
|
|
|
Interest Paid, Net of Amounts Capitalized
|
|
$
|
318
|
|
|
$
|
294
|
|
|
$
|
273
|
|
|
|
Accrued Property, Plant and Equipment Expenditures
|
|
$
|
350
|
|
|
$
|
429
|
|
|
$
|
420
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
Common Stock
|
|
Contributed
Capital
|
|
Basis
Adjustment
|
|
Retained
Earnings
|
|
Accumulated
Other
Comprehensive
Income (Loss)
|
|
Total
|
|
||||||||||||
|
Balance as of January 1, 2016
|
|
$
|
892
|
|
|
$
|
695
|
|
|
$
|
986
|
|
|
$
|
4,999
|
|
|
$
|
1
|
|
|
$
|
7,573
|
|
|
|
Net Income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
889
|
|
|
—
|
|
|
889
|
|
|
||||||
|
Other Comprehensive Income, net of tax (expense) benefit of $0
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
||||||
|
Comprehensive Income
|
|
|
|
|
|
|
|
|
|
|
|
889
|
|
|
|||||||||||
|
Contributed Capital
|
|
—
|
|
|
250
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
250
|
|
|
||||||
|
Balance as of December 31, 2016
|
|
$
|
892
|
|
|
$
|
945
|
|
|
$
|
986
|
|
|
$
|
5,888
|
|
|
$
|
1
|
|
|
$
|
8,712
|
|
|
|
Net Income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
973
|
|
|
—
|
|
|
973
|
|
|
||||||
|
Other Comprehensive Income, net of tax (expense) benefit of $0
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
(1
|
)
|
|
||||||
|
Comprehensive Income
|
|
|
|
|
|
|
|
|
|
|
|
972
|
|
|
|||||||||||
|
Contributed Capital
|
|
—
|
|
|
150
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
150
|
|
|
||||||
|
Balance as of December 31, 2017
|
|
$
|
892
|
|
|
$
|
1,095
|
|
|
$
|
986
|
|
|
$
|
6,861
|
|
|
$
|
—
|
|
|
$
|
9,834
|
|
|
|
Net Income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,067
|
|
|
—
|
|
|
1,067
|
|
|
||||||
|
Other Comprehensive Income, net of tax (expense) benefit of $1
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
(1
|
)
|
|
||||||
|
Comprehensive Income
|
|
|
|
|
|
|
|
|
|
|
|
1,066
|
|
|
|||||||||||
|
Balance as of December 31, 2018
|
|
$
|
892
|
|
|
$
|
1,095
|
|
|
$
|
986
|
|
|
$
|
7,928
|
|
|
$
|
(1
|
)
|
|
$
|
10,900
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
Years Ended December 31,
|
|
||||||||||
|
|
|
2018
|
|
2017
|
|
2016
|
|
||||||
|
OPERATING REVENUES
|
|
$
|
4,146
|
|
|
$
|
3,860
|
|
|
$
|
3,861
|
|
|
|
OPERATING EXPENSES
|
|
|
|
|
|
|
|
||||||
|
Energy Costs
|
|
2,197
|
|
|
1,913
|
|
|
1,824
|
|
|
|||
|
Operation and Maintenance
|
|
999
|
|
|
1,046
|
|
|
1,139
|
|
|
|||
|
Depreciation and Amortization
|
|
354
|
|
|
1,268
|
|
|
881
|
|
|
|||
|
Total Operating Expenses
|
|
3,550
|
|
|
4,227
|
|
|
3,844
|
|
|
|||
|
OPERATING INCOME (LOSS)
|
|
596
|
|
|
(367
|
)
|
|
17
|
|
|
|||
|
Income from Equity Method Investments
|
|
15
|
|
|
14
|
|
|
11
|
|
|
|||
|
Net Gains (Losses) on Trust Investments
|
|
(140
|
)
|
|
125
|
|
|
(6
|
)
|
|
|||
|
Other Income (Deductions)
|
|
21
|
|
|
20
|
|
|
23
|
|
|
|||
|
Non-Operating Pension and OPEB (Costs) Credits
|
|
15
|
|
|
8
|
|
|
(4
|
)
|
|
|||
|
Interest Expense
|
|
(76
|
)
|
|
(50
|
)
|
|
(84
|
)
|
|
|||
|
INCOME (LOSS) BEFORE INCOME TAXES
|
|
431
|
|
|
(250
|
)
|
|
(43
|
)
|
|
|||
|
Income Tax Benefit (Expense)
|
|
(66
|
)
|
|
729
|
|
|
61
|
|
|
|||
|
NET INCOME
|
|
$
|
365
|
|
|
$
|
479
|
|
|
$
|
18
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
Years Ended December 31,
|
|
|||||||||||
|
|
|
2018
|
|
2017
|
|
2016
|
|
||||||
|
NET INCOME
|
|
$
|
365
|
|
|
$
|
479
|
|
|
$
|
18
|
|
|
|
Other Comprehensive Income (Loss), net of tax
|
|
|
|
|
|
|
|
||||||
|
Unrealized Gains (Losses) on Available-for-Sale Securities, net of tax (expense) benefit of $9, $(39) and $(41) for the years ended 2018, 2017 and 2016, respectively
|
|
(13
|
)
|
|
46
|
|
|
42
|
|
|
|||
|
Pension/OPEB adjustment, net of tax (expense) benefit of $(16), $(3) and $9 for the years ended 2018, 2017 and 2016, respectively
|
|
41
|
|
|
(7
|
)
|
|
(13
|
)
|
|
|||
|
Other Comprehensive Income (Loss), net of tax
|
|
28
|
|
|
39
|
|
|
29
|
|
|
|||
|
COMPREHENSIVE INCOME
|
|
$
|
393
|
|
|
$
|
518
|
|
|
$
|
47
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
Years Ended December 31,
|
|
||||||||||
|
|
|
2018
|
|
2017
|
|
2016
|
|
||||||
|
CASH FLOWS FROM OPERATING ACTIVITIES
|
|
|
|
|
|
|
|
||||||
|
Net Income
|
|
$
|
365
|
|
|
$
|
479
|
|
|
$
|
18
|
|
|
|
Adjustments to Reconcile Net Income to Net Cash Flows from Operating Activities:
|
|
|
|
|
|
|
|
||||||
|
Depreciation and Amortization
|
|
354
|
|
|
1,268
|
|
|
881
|
|
|
|||
|
Amortization of Nuclear Fuel
|
|
187
|
|
|
199
|
|
|
203
|
|
|
|||
|
Provision for Deferred Income Taxes and ITC
|
|
206
|
|
|
(807
|
)
|
|
(208
|
)
|
|
|||
|
Interest Accretion on Asset Retirement Obligation
|
|
41
|
|
|
30
|
|
|
26
|
|
|
|||
|
Net Realized and Unrealized (Gains) Losses on Energy Contracts and Other Derivatives
|
|
116
|
|
|
188
|
|
|
183
|
|
|
|||
|
Emission Allowances and Renewable Energy Credit (REC) Compliance Accrual
|
|
97
|
|
|
103
|
|
|
109
|
|
|
|||
|
Impairment Costs for Early Plant Retirements
|
|
—
|
|
|
—
|
|
|
102
|
|
|
|||
|
Non-Cash Employee Benefit Plan Costs
|
|
23
|
|
|
28
|
|
|
39
|
|
|
|||
|
Gain on Sale of Hudson and Mercer Units
|
|
(54
|
)
|
|
—
|
|
|
—
|
|
|
|||
|
Net (Gains) Losses and (Income) Expense from NDT Fund
|
|
98
|
|
|
(156
|
)
|
|
(26
|
)
|
|
|||
|
Net Change in Certain Current Assets and Liabilities
|
|
|
|
|
|
|
|
||||||
|
Fuel, Materials and Supplies
|
|
(39
|
)
|
|
42
|
|
|
31
|
|
|
|||
|
Margin Deposit
|
|
(247
|
)
|
|
(90
|
)
|
|
(76
|
)
|
|
|||
|
Accounts Receivable
|
|
51
|
|
|
(45
|
)
|
|
(71
|
)
|
|
|||
|
Accounts Payable
|
|
(13
|
)
|
|
39
|
|
|
(22
|
)
|
|
|||
|
Accounts Receivable/Payable—Affiliated Companies, net
|
|
(56
|
)
|
|
(2
|
)
|
|
6
|
|
|
|||
|
Other Current Assets and Liabilities
|
|
(40
|
)
|
|
10
|
|
|
10
|
|
|
|||
|
Employee Benefit Plan Funding and Related Payments
|
|
(9
|
)
|
|
(7
|
)
|
|
(13
|
)
|
|
|||
|
Other
|
|
4
|
|
|
47
|
|
|
63
|
|
|
|||
|
Net Cash Provided By (Used In) Operating Activities
|
|
1,084
|
|
|
1,326
|
|
|
1,255
|
|
|
|||
|
CASH FLOWS FROM INVESTING ACTIVITIES
|
|
|
|
|
|
|
|
||||||
|
Additions to Property, Plant and Equipment
|
|
(996
|
)
|
|
(1,231
|
)
|
|
(1,343
|
)
|
|
|||
|
Purchase of Emissions Allowances and RECs
|
|
(146
|
)
|
|
(117
|
)
|
|
(99
|
)
|
|
|||
|
Proceeds from Sales of Trust Investments
|
|
1,423
|
|
|
2,182
|
|
|
739
|
|
|
|||
|
Purchases of Trust Investments
|
|
(1,392
|
)
|
|
(2,199
|
)
|
|
(766
|
)
|
|
|||
|
Short-Term Loan—Affiliated Company
|
|
—
|
|
|
87
|
|
|
276
|
|
|
|||
|
Other
|
|
60
|
|
|
46
|
|
|
46
|
|
|
|||
|
Net Cash Provided By (Used In) Investing Activities
|
|
(1,051
|
)
|
|
(1,232
|
)
|
|
(1,147
|
)
|
|
|||
|
CASH FLOWS FROM FINANCING ACTIVITIES
|
|
|
|
|
|
|
|
||||||
|
Issuance of Long-Term Debt
|
|
700
|
|
|
—
|
|
|
700
|
|
|
|||
|
Cash Dividend Paid
|
|
(400
|
)
|
|
(350
|
)
|
|
(250
|
)
|
|
|||
|
Redemption of Long-Term Debt
|
|
(250
|
)
|
|
—
|
|
|
(553
|
)
|
|
|||
|
Short-Term Loan—Affiliated Company
|
|
(88
|
)
|
|
281
|
|
|
—
|
|
|
|||
|
Other
|
|
(5
|
)
|
|
(4
|
)
|
|
(6
|
)
|
|
|||
|
Net Cash Provided By (Used In) Financing Activities
|
|
(43
|
)
|
|
(73
|
)
|
|
(109
|
)
|
|
|||
|
Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash
|
|
(10
|
)
|
|
21
|
|
|
(1
|
)
|
|
|||
|
Cash, Cash Equivalents and Restricted Cash at Beginning of Period
|
|
32
|
|
|
11
|
|
|
12
|
|
|
|||
|
Cash, Cash Equivalents and Restricted Cash at End of Period
|
|
$
|
22
|
|
|
$
|
32
|
|
|
$
|
11
|
|
|
|
Supplemental Disclosure of Cash Flow Information:
|
|
|
|
|
|
|
|
||||||
|
Income Taxes Paid (Received)
|
|
$
|
(92
|
)
|
|
$
|
77
|
|
|
$
|
50
|
|
|
|
Interest Paid, Net of Amounts Capitalized
|
|
$
|
73
|
|
|
$
|
48
|
|
|
$
|
81
|
|
|
|
Accrued Property, Plant and Equipment Expenditures
|
|
$
|
167
|
|
|
$
|
293
|
|
|
$
|
244
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
Contributed
Capital
|
|
Basis
Adjustment
|
|
Retained
Earnings
|
|
Accumulated
Other
Comprehensive
Income (Loss)
|
|
Total
|
|
||||||||||
|
Balance as of January 1, 2016
|
|
$
|
2,214
|
|
|
$
|
(986
|
)
|
|
$
|
5,014
|
|
|
$
|
(240
|
)
|
|
$
|
6,002
|
|
|
|
Net Income
|
|
—
|
|
|
—
|
|
|
18
|
|
|
—
|
|
|
18
|
|
|
|||||
|
Other Comprehensive Income (Loss), net of tax (expense) benefit of $(32)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
29
|
|
|
29
|
|
|
|||||
|
Comprehensive Income
|
|
|
|
|
|
|
|
|
|
47
|
|
|
|||||||||
|
Cash Dividends Paid
|
|
—
|
|
|
—
|
|
|
(250
|
)
|
|
—
|
|
|
(250
|
)
|
|
|||||
|
Balance as of December 31, 2016
|
|
$
|
2,214
|
|
|
$
|
(986
|
)
|
|
$
|
4,782
|
|
|
$
|
(211
|
)
|
|
$
|
5,799
|
|
|
|
Net Income
|
|
—
|
|
|
—
|
|
|
479
|
|
|
—
|
|
|
479
|
|
|
|||||
|
Other Comprehensive Income (Loss), net of tax (expense) benefit of $(42)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
39
|
|
|
39
|
|
|
|||||
|
Comprehensive Income
|
|
|
|
|
|
|
|
|
|
518
|
|
|
|||||||||
|
Cash Dividends Paid
|
|
—
|
|
|
—
|
|
|
(350
|
)
|
|
—
|
|
|
(350
|
)
|
|
|||||
|
Balance as of December 31, 2017
|
|
$
|
2,214
|
|
|
$
|
(986
|
)
|
|
$
|
4,911
|
|
|
$
|
(172
|
)
|
|
$
|
5,967
|
|
|
|
Net Income
|
|
—
|
|
|
—
|
|
|
365
|
|
|
—
|
|
|
365
|
|
|
|||||
|
Cumulative Effect Adjustment to Reclassify Unrealized Net Gains on Equity Investments
|
|
—
|
|
|
—
|
|
|
175
|
|
|
(175
|
)
|
|
—
|
|
|
|||||
|
Other Comprehensive Income (Loss), net of tax (expense) benefit of $(7)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
28
|
|
|
28
|
|
|
|||||
|
Comprehensive Income
|
|
|
|
|
|
|
|
|
|
393
|
|
|
|||||||||
|
Cash Dividends Paid
|
|
—
|
|
|
—
|
|
|
(400
|
)
|
|
—
|
|
|
(400
|
)
|
|
|||||
|
Balance as of December 31, 2018
|
|
$
|
2,214
|
|
|
$
|
(986
|
)
|
|
$
|
5,051
|
|
|
$
|
(319
|
)
|
|
$
|
5,960
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
•
|
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 regulated solar generation projects and energy efficiency and related 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 and fuel supply functions through competitive energy sales in well-developed energy markets 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.
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
PSE&G
|
|
Power
|
|
Other (A)
|
|
Consolidated
|
|
||||||||
|
|
Millions
|
|
||||||||||||||
|
As of December 31, 2017
|
|
|
|
|
|
|
|
|
||||||||
|
Cash and Cash Equivalents
|
$
|
242
|
|
|
$
|
32
|
|
|
$
|
39
|
|
|
$
|
313
|
|
|
|
Restricted Cash in Other Current Assets
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
||||
|
Restricted Cash in Other Noncurrent Assets
|
2
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
||||
|
Cash, Cash Equivalents and Restricted Cash
|
$
|
244
|
|
|
$
|
32
|
|
|
$
|
39
|
|
|
$
|
315
|
|
|
|
As of December 31, 2018
|
|
|
|
|
|
|
|
|
||||||||
|
Cash and Cash Equivalents
|
$
|
39
|
|
|
$
|
22
|
|
|
$
|
116
|
|
|
$
|
177
|
|
|
|
Restricted Cash in Other Current Assets
|
8
|
|
|
—
|
|
|
—
|
|
|
8
|
|
|
||||
|
Restricted Cash in Other Noncurrent Assets
|
14
|
|
|
—
|
|
|
—
|
|
|
14
|
|
|
||||
|
Cash, Cash Equivalents and Restricted Cash
|
$
|
61
|
|
|
$
|
22
|
|
|
$
|
116
|
|
|
$
|
199
|
|
|
|
|
|
|
|
|
|
|
|
|
(A)
|
Includes amounts applicable to PSEG (parent corporation), Energy Holdings and Services.
|
|
|
|
|
|
|
|
|
|
|||
|
|
|
2018
|
|
2017
|
|
2016
|
|
|||
|
|
|
Avg Rate
|
|
Avg Rate
|
|
Avg Rate
|
|
|||
|
Electric Transmission
|
|
2.42
|
%
|
|
2.41
|
%
|
|
2.39
|
%
|
|
|
Electric Distribution
|
|
2.51
|
%
|
|
2.51
|
%
|
|
2.49
|
%
|
|
|
Gas Distribution
|
|
1.61
|
%
|
|
1.63
|
%
|
|
1.63
|
%
|
|
|
|
|
|
|
|
|
|
|
•
|
general plant assets—
3
years to
20
years
|
•
|
fossil production assets—
30
years to
67
years
|
•
|
nuclear generation assets—approximately
60
years
|
•
|
pumped storage facilities—
76
years
|
•
|
solar assets—
25
years
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
|
|
AFUDC/IDC Capitalized
|
|
|||||||||||||||||||
|
|
|
2018
|
|
2017
|
|
2016
|
|
|||||||||||||||
|
|
|
Millions
|
|
Avg Rate
|
|
Millions
|
|
Avg Rate
|
|
Millions
|
|
Avg Rate
|
|
|||||||||
|
PSE&G
|
|
$
|
70
|
|
|
7.74
|
%
|
|
$
|
73
|
|
|
7.42
|
%
|
|
$
|
66
|
|
|
7.81
|
%
|
|
|
Power
|
|
$
|
67
|
|
|
4.60
|
%
|
|
$
|
78
|
|
|
4.60
|
%
|
|
$
|
54
|
|
|
4.87
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
PSE&G
|
|
Power
|
|
Other
|
|
Eliminations
|
|
Consolidated
|
|
||||||||||
|
|
Millions
|
|
||||||||||||||||||
|
Year Ended December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Revenues from Contracts with Customers
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Electric Distribution
|
$
|
3,131
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,131
|
|
|
|
Gas Distribution
|
1,756
|
|
|
—
|
|
|
—
|
|
|
(18
|
)
|
|
1,738
|
|
|
|||||
|
Transmission
|
1,236
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,236
|
|
|
|||||
|
Electricity and Related Product Sales
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
PJM
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Third Party Sales
|
—
|
|
|
1,933
|
|
|
—
|
|
|
—
|
|
|
1,933
|
|
|
|||||
|
Sales to Affiliates
|
—
|
|
|
609
|
|
|
—
|
|
|
(609
|
)
|
|
—
|
|
|
|||||
|
New York ISO
|
—
|
|
|
209
|
|
|
—
|
|
|
—
|
|
|
209
|
|
|
|||||
|
ISO New England
|
—
|
|
|
92
|
|
|
—
|
|
|
—
|
|
|
92
|
|
|
|||||
|
Gas Sales
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Third Party Sales
|
—
|
|
|
151
|
|
|
—
|
|
|
—
|
|
|
151
|
|
|
|||||
|
Sales to Affiliates
|
—
|
|
|
861
|
|
|
—
|
|
|
(861
|
)
|
|
—
|
|
|
|||||
|
Other Revenues from Contracts with Customers (A)
|
275
|
|
|
44
|
|
|
532
|
|
|
(4
|
)
|
|
847
|
|
|
|||||
|
Total Revenues from Contracts with Customers
|
6,398
|
|
|
3,899
|
|
|
532
|
|
|
(1,492
|
)
|
|
9,337
|
|
|
|||||
|
Revenues Unrelated to Contracts with Customers (B)
|
73
|
|
|
247
|
|
|
39
|
|
|
—
|
|
|
359
|
|
|
|||||
|
Total Operating Revenues
|
$
|
6,471
|
|
|
$
|
4,146
|
|
|
$
|
571
|
|
|
$
|
(1,492
|
)
|
|
$
|
9,696
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
PSE&G
|
|
Power
|
|
Other
|
|
Eliminations
|
|
Consolidated
|
|
||||||||||
|
|
Millions
|
|
||||||||||||||||||
|
Year Ended December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Revenues from Contracts with Customers
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Electric Distribution
|
$
|
3,088
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,088
|
|
|
|
Gas Distribution
|
1,684
|
|
|
—
|
|
|
—
|
|
|
(14
|
)
|
|
1,670
|
|
|
|||||
|
Transmission
|
1,222
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,222
|
|
|
|||||
|
Electricity and Related Product Sales
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
PJM
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Third Party Sales
|
—
|
|
|
1,199
|
|
|
—
|
|
|
—
|
|
|
1,199
|
|
|
|||||
|
Sales to Affiliates
|
—
|
|
|
734
|
|
|
—
|
|
|
(734
|
)
|
|
—
|
|
|
|||||
|
New York ISO
|
—
|
|
|
181
|
|
|
—
|
|
|
—
|
|
|
181
|
|
|
|||||
|
ISO New England
|
—
|
|
|
39
|
|
|
—
|
|
|
—
|
|
|
39
|
|
|
|||||
|
Gas Sales
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Third Party Sales
|
—
|
|
|
134
|
|
|
—
|
|
|
—
|
|
|
134
|
|
|
|||||
|
Sales to Affiliates
|
—
|
|
|
804
|
|
|
—
|
|
|
(804
|
)
|
|
—
|
|
|
|||||
|
Other Revenues from Contracts with Customers (A)
|
265
|
|
|
42
|
|
|
511
|
|
|
(4
|
)
|
|
814
|
|
|
|||||
|
Total Revenues from Contracts with Customers
|
6,259
|
|
|
3,133
|
|
|
511
|
|
|
(1,556
|
)
|
|
8,347
|
|
|
|||||
|
Revenues Unrelated to Contracts with Customers (B)
|
65
|
|
|
727
|
|
|
(45
|
)
|
|
—
|
|
|
747
|
|
|
|||||
|
Total Operating Revenues
|
$
|
6,324
|
|
|
$
|
3,860
|
|
|
$
|
466
|
|
|
$
|
(1,556
|
)
|
|
$
|
9,094
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
PSE&G
|
|
Power
|
|
Other
|
|
Eliminations
|
|
Consolidated
|
|
||||||||||
|
|
Millions
|
|
||||||||||||||||||
|
Year Ended December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Revenues from Contracts with Customers
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Electric Distribution
|
$
|
3,327
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,327
|
|
|
|
Gas Distribution
|
1,582
|
|
|
—
|
|
|
—
|
|
|
(22
|
)
|
|
1,560
|
|
|
|||||
|
Transmission
|
1,084
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,084
|
|
|
|||||
|
Electricity and Related Product Sales
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
PJM
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Third Party Sales
|
—
|
|
|
1,060
|
|
|
—
|
|
|
—
|
|
|
1,060
|
|
|
|||||
|
Sales to Affiliates
|
—
|
|
|
805
|
|
|
—
|
|
|
(805
|
)
|
|
—
|
|
|
|||||
|
New York ISO
|
—
|
|
|
169
|
|
|
—
|
|
|
—
|
|
|
169
|
|
|
|||||
|
ISO New England
|
—
|
|
|
55
|
|
|
—
|
|
|
—
|
|
|
55
|
|
|
|||||
|
Gas Sales
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Third Party Sales
|
—
|
|
|
114
|
|
|
—
|
|
|
—
|
|
|
114
|
|
|
|||||
|
Sales to Affiliates
|
—
|
|
|
737
|
|
|
—
|
|
|
(737
|
)
|
|
—
|
|
|
|||||
|
Other Revenues from Contracts with Customers (A)
|
292
|
|
|
35
|
|
|
482
|
|
|
(4
|
)
|
|
805
|
|
|
|||||
|
Total Revenues from Contracts with Customers
|
6,285
|
|
|
2,975
|
|
|
482
|
|
|
(1,568
|
)
|
|
8,174
|
|
|
|||||
|
Revenues Unrelated to Contracts with Customers (B)
|
18
|
|
|
886
|
|
|
(112
|
)
|
|
—
|
|
|
792
|
|
|
|||||
|
Total Operating Revenues
|
$
|
6,303
|
|
|
$
|
3,861
|
|
|
$
|
370
|
|
|
$
|
(1,568
|
)
|
|
$
|
8,966
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(A)
|
Includes primarily revenues from appliance repair services at PSE&G, solar power projects and energy management and fuel service contracts with LIPA at Power, and PSEG LI’s OSA with LIPA in Other.
|
(B)
|
Includes primarily alternative revenues at PSE&G, derivative contracts at Power, and lease contracts in Other. For the
years
ended
December 31, 2018
,
2017
and
2016
, Other includes losses of
$8 million
,
$77 million
and
$147 million
, respectively, related to Energy Holdings’ investments in leases. For additional information, see
Note 8. Long-Term Investments
.
|
|
|
|
|
|
|
|
|
|
Delivery Year
|
|
$ per MW-Day
|
|
MW Cleared
|
|
|
|
June 2018 to May 2019
|
|
$205
|
|
9,200
|
|
|
|
June 2019 to May 2020
|
|
$116
|
|
8,900
|
|
|
|
June 2020 to May 2021
|
|
$170
|
|
8,100
|
|
|
|
June 2021 to May 2022
|
|
$178
|
|
7,700
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Delivery Year
|
|
$ per MW-Day
|
|
MW Cleared
|
|
|
|
June 2018 to May 2019
|
|
$314
|
|
820
|
|
|
|
June 2019 to May 2020
|
|
$231
|
|
1,330
|
|
|
|
June 2020 to May 2021
|
|
$195
|
|
1,330
|
|
|
|
June 2021 to May 2022
|
|
$192
|
|
950
|
|
|
|
June 2022 to May 2023
|
|
$231
|
|
480
|
|
|
|
June 2023 to May 2024
|
|
$231
|
|
480
|
|
|
|
June 2024 to May 2025
|
|
$231
|
|
480
|
|
|
|
June 2025 to May 2026
|
|
$231
|
|
480
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
As of December 31, 2018
|
|
||||||||||||||
|
|
|
Hope Creek
|
|
Salem
|
|
Support Facilities and Other (A)
|
|
Peach Bottom
|
|
||||||||
|
|
|
Millions
|
|
||||||||||||||
|
Assets
|
|
|
|
|
|
|
|
|
|
||||||||
|
Materials and Supplies Inventory
|
|
$
|
84
|
|
|
$
|
65
|
|
|
$
|
—
|
|
|
$
|
41
|
|
|
|
Nuclear Production, net of Accumulated Depreciation
|
|
635
|
|
|
626
|
|
|
197
|
|
|
777
|
|
|
||||
|
Nuclear Fuel In-Service, net of Accumulated Depreciation
|
|
139
|
|
|
110
|
|
|
—
|
|
|
148
|
|
|
||||
|
Construction Work in Progress (including nuclear fuel)
|
|
131
|
|
|
132
|
|
|
5
|
|
|
20
|
|
|
||||
|
Total Assets
|
|
$
|
989
|
|
|
$
|
933
|
|
|
$
|
202
|
|
|
$
|
986
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
||||||||
|
Asset Retirement Obligation
|
|
$
|
253
|
|
|
$
|
240
|
|
|
$
|
—
|
|
|
$
|
215
|
|
|
|
Total Liabilities
|
|
$
|
253
|
|
|
$
|
240
|
|
|
$
|
—
|
|
|
$
|
215
|
|
|
|
Net Assets
|
|
$
|
736
|
|
|
$
|
693
|
|
|
$
|
202
|
|
|
$
|
771
|
|
|
|
NRC License Renewal Term
|
|
2046
|
|
2036/2040
|
|
|
N/A
|
|
|
2033/2034
|
|
|
|||||
|
% Owned
|
|
100
|
%
|
|
57
|
%
|
|
Various
|
|
|
50
|
%
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
(A)
|
Includes Hope Creek’s and Salem’s shared support facilities and other nuclear development capital.
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
PSE&G
|
|
Power
|
|
Other
|
|
PSEG
Consolidated
|
|
||||||||
|
|
Millions
|
|
||||||||||||||
|
2018
|
|
|
|
|
|
|
|
|
||||||||
|
Transmission and Distribution:
|
|
|
|
|
|
|
|
|
||||||||
|
Electric Transmission
|
$
|
11,991
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
11,991
|
|
|
|
Electric Distribution
|
8,989
|
|
|
—
|
|
|
—
|
|
|
8,989
|
|
|
||||
|
Gas Distribution and Transmission
|
7,854
|
|
|
—
|
|
|
—
|
|
|
7,854
|
|
|
||||
|
Construction Work in Progress
|
1,170
|
|
|
—
|
|
|
—
|
|
|
1,170
|
|
|
||||
|
Other
|
624
|
|
|
—
|
|
|
—
|
|
|
624
|
|
|
||||
|
Total Transmission and Distribution
|
30,628
|
|
|
—
|
|
|
—
|
|
|
30,628
|
|
|
||||
|
Generation:
|
|
|
|
|
|
|
|
|
||||||||
|
Fossil Production
|
—
|
|
|
6,541
|
|
|
—
|
|
|
6,541
|
|
|
||||
|
Nuclear Production
|
—
|
|
|
2,971
|
|
|
—
|
|
|
2,971
|
|
|
||||
|
Nuclear Fuel in Service
|
—
|
|
|
765
|
|
|
—
|
|
|
765
|
|
|
||||
|
Other Production-Solar
|
623
|
|
|
833
|
|
|
—
|
|
|
1,456
|
|
|
||||
|
Construction Work in Progress
|
—
|
|
|
1,011
|
|
|
—
|
|
|
1,011
|
|
|
||||
|
Total Generation
|
623
|
|
|
12,121
|
|
|
—
|
|
|
12,744
|
|
|
||||
|
Other
|
382
|
|
|
103
|
|
|
344
|
|
|
829
|
|
|
||||
|
Total
|
$
|
31,633
|
|
|
$
|
12,224
|
|
|
$
|
344
|
|
|
$
|
44,201
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
PSE&G
|
|
Power
|
|
Other
|
|
PSEG
Consolidated
|
|
||||||||
|
|
|
Millions
|
|
||||||||||||||
|
2017
|
|
|
|
|
|
|
|
|
|
||||||||
|
Transmission and Distribution:
|
|
|
|
|
|
|
|
|
|
||||||||
|
Electric Transmission
|
|
$
|
10,425
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
10,425
|
|
|
|
Electric Distribution
|
|
8,455
|
|
|
—
|
|
|
—
|
|
|
8,455
|
|
|
||||
|
Gas Distribution and Transmission
|
|
7,122
|
|
|
—
|
|
|
—
|
|
|
7,122
|
|
|
||||
|
Construction Work in Progress
|
|
1,735
|
|
|
—
|
|
|
—
|
|
|
1,735
|
|
|
||||
|
Other
|
|
512
|
|
|
—
|
|
|
—
|
|
|
512
|
|
|
||||
|
Total Transmission and Distribution
|
|
28,249
|
|
|
—
|
|
|
—
|
|
|
28,249
|
|
|
||||
|
Generation:
|
|
|
|
|
|
|
|
|
|
||||||||
|
Fossil Production
|
|
—
|
|
|
4,923
|
|
|
—
|
|
|
4,923
|
|
|
||||
|
Nuclear Production
|
|
—
|
|
|
2,893
|
|
|
—
|
|
|
2,893
|
|
|
||||
|
Nuclear Fuel in Service
|
|
—
|
|
|
745
|
|
|
—
|
|
|
745
|
|
|
||||
|
Other Production-Solar
|
|
593
|
|
|
757
|
|
|
—
|
|
|
1,350
|
|
|
||||
|
Construction Work in Progress
|
|
—
|
|
|
2,339
|
|
|
—
|
|
|
2,339
|
|
|
||||
|
Total Generation
|
|
593
|
|
|
11,657
|
|
|
—
|
|
|
12,250
|
|
|
||||
|
Other
|
|
275
|
|
|
98
|
|
|
359
|
|
|
732
|
|
|
||||
|
Total
|
|
$
|
29,117
|
|
|
$
|
11,755
|
|
|
$
|
359
|
|
|
$
|
41,231
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
|
|
|
|
As of December 31,
|
|
|||||||||||||||
|
|
|
|
|
2018
|
|
2017
|
|
|||||||||||||
|
|
|
Ownership
|
|
|
|
Accumulated
|
|
|
|
Accumulated
|
|
|||||||||
|
|
|
Interest
|
|
Plant
|
|
Depreciation
|
|
Plant
|
|
Depreciation
|
|
|||||||||
|
|
|
|
|
Millions
|
|
|||||||||||||||
|
PSE&G:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Transmission Facilities
|
|
Various
|
|
|
$
|
162
|
|
|
$
|
58
|
|
|
$
|
162
|
|
|
$
|
58
|
|
|
|
Power:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Coal Generating:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Conemaugh
|
|
23
|
%
|
|
$
|
417
|
|
|
$
|
192
|
|
|
$
|
408
|
|
|
$
|
178
|
|
|
|
Keystone
|
|
23
|
%
|
|
$
|
416
|
|
|
$
|
200
|
|
|
$
|
409
|
|
|
$
|
187
|
|
|
|
Nuclear Generating:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Peach Bottom
|
|
50
|
%
|
|
$
|
1,334
|
|
|
$
|
389
|
|
|
$
|
1,328
|
|
|
$
|
348
|
|
|
|
Salem
|
|
57
|
%
|
|
$
|
1,196
|
|
|
$
|
333
|
|
|
$
|
1,147
|
|
|
$
|
277
|
|
|
|
Nuclear Support Facilities
|
|
Various
|
|
|
$
|
244
|
|
|
$
|
95
|
|
|
$
|
239
|
|
|
$
|
81
|
|
|
|
Pumped Storage Facilities:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Yards Creek
|
|
50
|
%
|
|
$
|
48
|
|
|
$
|
26
|
|
|
$
|
44
|
|
|
$
|
26
|
|
|
|
Merrill Creek Reservoir
|
|
14
|
%
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
As of December 31,
|
|
||||||
|
|
|
2018
|
|
2017
|
|
||||
|
|
|
Millions
|
|
||||||
|
Regulatory Assets
|
|
|
|
|
|
||||
|
Current
|
|
|
|
|
|
||||
|
New Jersey Clean Energy Program
|
|
$
|
143
|
|
|
$
|
128
|
|
|
|
Electric Energy Costs—Basic Generation Service (BGS)
|
|
115
|
|
|
23
|
|
|
||
|
Storm Damage and Other
|
|
56
|
|
|
—
|
|
|
||
|
Green Program Recovery Charges (GPRC)
|
|
34
|
|
|
8
|
|
|
||
|
Weather Normalization Clause (WNC)
|
|
2
|
|
|
40
|
|
|
||
|
Other
|
|
39
|
|
|
12
|
|
|
||
|
Total Current Regulatory Assets
|
|
$
|
389
|
|
|
$
|
211
|
|
|
|
Noncurrent
|
|
|
|
|
|
||||
|
Pension and OPEB Costs
|
|
$
|
1,090
|
|
|
$
|
1,488
|
|
|
|
Deferred Income Tax Regulatory Assets
|
|
896
|
|
|
282
|
|
|
||
|
Manufactured Gas Plant (MGP) Remediation Costs
|
|
321
|
|
|
358
|
|
|
||
|
Electric Transmission and Gas Cost of Removal
|
|
223
|
|
|
199
|
|
|
||
|
Storm Damage and Other
|
|
214
|
|
|
241
|
|
|
||
|
Remediation Adjustment Charge (RAC) (Other Societal Benefits Charge (SBC))
|
|
175
|
|
|
172
|
|
|
||
|
Asset Retirement Obligation
|
|
166
|
|
|
162
|
|
|
||
|
GPRC
|
|
95
|
|
|
98
|
|
|
||
|
Unamortized Loss on Reacquired Debt and Debt Expense
|
|
49
|
|
|
55
|
|
|
||
|
Gas Costs—BGSS
|
|
31
|
|
|
30
|
|
|
||
|
Other
|
|
139
|
|
|
137
|
|
|
||
|
Total Noncurrent Regulatory Assets
|
|
$
|
3,399
|
|
|
$
|
3,222
|
|
|
|
Total Regulatory Assets
|
|
$
|
3,788
|
|
|
$
|
3,433
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
As of December 31,
|
|
||||||
|
|
|
2018
|
|
2017
|
|
||||
|
|
|
Millions
|
|
||||||
|
Regulatory Liabilities
|
|
|
|
|
|
||||
|
Current
|
|
|
|
|
|
||||
|
Deferred Income Tax Regulatory Liabilities
|
|
$
|
299
|
|
|
$
|
—
|
|
|
|
Gas Costs —BGSS
|
|
—
|
|
|
30
|
|
|
||
|
Gas Margin Adjustment Clause
|
|
8
|
|
|
12
|
|
|
||
|
Other
|
|
4
|
|
|
5
|
|
|
||
|
Total Current Regulatory Liabilities
|
|
$
|
311
|
|
|
$
|
47
|
|
|
|
Noncurrent
|
|
|
|
|
|
||||
|
Deferred Income Tax Regulatory Liabilities
|
|
$
|
3,170
|
|
|
$
|
2,868
|
|
|
|
Electric Distribution Cost of Removal
|
|
51
|
|
|
80
|
|
|
||
|
Total Noncurrent Regulatory Liabilities
|
|
$
|
3,221
|
|
|
$
|
2,948
|
|
|
|
Total Regulatory Liabilities
|
|
$
|
3,532
|
|
|
$
|
2,995
|
|
|
|
|
|
|
|
|
|
•
|
Asset Retirement Obligation:
These costs represent the differences between rate-regulated cost of removal accounting and asset retirement accounting under GAAP. These costs will be recovered in future rates as assets are retired.
|
•
|
Deferred Income Tax Regulatory Assets:
These amounts represent the portion of deferred income taxes that will be recovered through future rates, based upon established regulatory practices and orders from the BPU.
|
•
|
Deferred Income Tax Regulatory Liabilities:
These amounts represent the future refunds to customers of PSE&G’s excess Accumulated Deferred Income Tax liabilities as a result of the reduction in the federal corporate income tax rate effective January 1, 2018 and the flow-back of tax repair-related accumulated deferred income taxes that PSE&G agreed to as part of the settlement of its 2018 distribution base rate proceeding.
|
•
|
Electric and Gas Cost of Removal:
PSE&G accrues and collects in rates for the cost of removing, dismantling and disposing of its T&D assets upon retirement. The Regulatory Asset or Liability for non-legally required cost of removal represents the difference between amounts collected in rates and costs actually incurred.
|
•
|
Electric Energy Costs
—
BGS:
These costs represent the over or under recovered amounts associated with BGS, as approved by the BPU. Pursuant to BPU requirements, PSE&G serves as the supplier of last resort for electric customers within its service territory that are not served by another supplier. Pricing for those services are set by the BPU as a pass-through, resulting in no margin for PSE&G’s operations. Over or under recovered balances with interest are returned or recovered through monthly filings.
|
•
|
Gas Costs
—
BGSS:
These costs represent the over or under recovered amounts associated with BGSS, as approved by the BPU. Pursuant to BPU requirements, PSE&G serves as the supplier of last resort for gas customers within its service territory that are not served by another supplier. Pricing for those services are set by the BPU as a pass-through, resulting in no margin for PSE&G’s operations. Over or under collected balances are returned or recovered through an annual filing. Interest is accrued only on over recovered balances.
|
•
|
Gas Margin Adjustment Clause:
This mechanism credits Firm delivery customers for net distribution margin revenue collected from Transportation Gas Service Non-Firm (TSG-NF) delivery customers. The balance represents the difference between the net margin collected from the TSG-NF Customers versus bill credits provided to Firm delivery customers. Over or under recovered balances with interest are returned or recovered through the subsequent annual filing.
|
•
|
GPRC:
This amount represents costs of the over or under collected balances associated with various renewable energy and energy efficiency programs. PSE&G files annually with the BPU for recovery of amounts that include a return on and of its investment over the lives of the underlying investments and capital assets which range from five to ten years. Interest is accrued monthly on any over or under recovered balances. Components of the GPRC include: Carbon Abatement, Energy Efficiency Economic Stimulus Program (EEE), EEE Extension Program, EEE Extension II Program, the Demand Response Program, Solar Generation Investment Program (Solar 4 All
®
), Solar 4 All
®
Extension, Solar 4 All
®
Extension II, Solar Loan II Program, Solar Loan III Program and the Energy Efficiency 2017 Program.
|
•
|
MGP Remediation Costs:
Represents the low end of the range for the remaining environmental investigation and remediation program cleanup costs for MGPs that are probable of recovery in future rates. Once these costs are incurred, they are recovered through the RAC in the SBC over a seven year period with interest.
|
•
|
New Jersey Clean Energy Program:
The BPU approved future funding requirements for Energy Efficiency and Renewable Energy Programs through the first half of 2018. The BPU funding requirements are recovered through the SBC.
|
•
|
Pension and OPEB Costs:
Pursuant to the adoption of accounting guidance for employers’ defined benefit pension and OPEB plans, PSE&G recorded the unrecognized costs for defined benefit pension and other OPEB plans on the balance sheet as a Regulatory Asset. These costs represent actuarial gains or losses and prior service costs which have not been expensed. These costs are amortized and recovered in future rates.
|
•
|
RAC (Other SBC):
Costs incurred to clean up MGPs which are recovered over seven years with interest through an annual filing.
|
•
|
SBC:
The SBC, as authorized by the BPU and the New Jersey Electric Discount and Energy Competition Act, includes costs related to PSE&G’s electric and gas business as follows: (1) the Universal Service Fund (USF); (2) Energy Efficiency and Renewable Energy Programs; (3) Electric bad debt expense; and (4) the RAC for incurred MGP remediation expenditures. Over or under recovered balances with interest are to be returned or recovered through an annual filing.
|
•
|
Storm Damage and Other:
Represents deferred costs, primarily comprised of storm costs incurred in the cleanup of major storms from 2010 through 2018, which are being amortized over five years.
|
•
|
Unamortized Loss on Reacquired Debt and Debt Expense:
Represents losses on reacquired long-term debt and expenses associated with issuances of new debt, which are recovered through rates over the remaining life of the debt.
|
•
|
WNC:
This represents the over or under recovery of gas margin which is filed annually with the BPU. The WNC requires PSE&G to calculate, at the end of each October-to-May period, the level by which margin revenues differed from what would have resulted if normal weather had occurred. Over recoveries are returned to customers in the next winter season while under recoveries (subject to an earnings cap) are recovered from customers in the next winter season.
|
•
|
Electric and Gas Distribution Base Rate Filings
—In October 2018, the BPU issued an Order approving the settlement of PSE&G’s distribution base rate proceeding with new rates effective November 1, 2018. The settlement resulted in a net reduction in overall annual revenues of approximately
$13 million
, comprised of a
$212 million
increase in base revenues, including recovery of deferred storm costs, offset by the return of tax benefits of approximately
$225 million
. The tax benefits include the flow-back to customers of excess accumulated deferred income taxes resulting from the reduction of the federal income tax rates provided in the Tax Cuts and Jobs Act of 2017 (Tax Act) as well as the accumulated deferred income taxes from previously realized tax repair deductions and tax benefits from future tax repair deductions as realized. The Order provided for a
$9.5 billion
rate base, a
9.6%
return on equity for PSE&G’s distribution business and a
54%
equity component of its capitalization structure. In addition to the
$13 million
annual revenue reduction, the Order provided for a
$28 million
one-time refund to customers in November and December 2018 for taxes collected at the higher federal income tax rate for the January 1 to March 31, 2018 period. Previously, the BPU had approved a rate reduction effective April 1, 2018, to PSE&G’s then current electric and gas base rates of approximately
$71 million
and
$43 million
, respectively, on an annual basis, to reflect the lower federal income tax rate for the period April 1 and forward. As a result of the agreement to flow back tax repair-related accumulated deferred income taxes in the settlement, PSE&G has recognized a Regulatory Liability and a corresponding Regulatory Asset.
|
•
|
Transmission Formula Rate Filings
—In October 2018, PSE&G made two FERC filings with respect to its Transmission Formula Rate. PSE&G filed its 2019 Annual Transmission Formula Rate Update with FERC requesting new rates for 2019 with an effective date of January 1, 2019. In addition, PSE&G filed a Section 205 filing that sought FERC approval to modify its existing Formula Rate template in order to refund approximately
$114 million
of transmission-related “unprotected excess deferred income tax benefits” in 2019. In December 2018, FERC approved PSE&G’s Section 205 filing, subject to the submission of a compliance filing which was submitted to FERC in January 2019. As a result, PSE&G filed a revised 2019 Annual Transmission Formula Rate Update to include the refund of the approved excess deferred income tax benefits. The revised 2019 Annual Transmission Formula Rate, as filed with FERC in January 2019, decreases overall annual transmission revenues by approximately
$54 million
, subject to true-up.
|
•
|
Gas System Modernization Program I (GSMP I)
—In December 2018, the BPU approved recovery of PSE&G’s GSMP I capital investment recovery petition for an annual gas revenue requirement increase of
$21 million
effective January 1, 2019.
|
•
|
RAC
—In January 2019, PSE&G updated its RAC 26 recovery request with the BPU seeking recovery of
$73 million
of net MGP costs from August 1, 2017 through July 31, 2018. This matter is pending. In October 2018, the BPU approved PSE&G’s filing with respect to its RAC 25 petition allowing recovery of
$63 million
effective November 1, 2018 related to MGP expenditures from August 1, 2016 through July 31, 2017.
|
•
|
GPRC
—In October 2018, the BPU approved PSE&G’s 2017 GPRC cost recovery petition requesting recovery of approximately
$58 million
and
$15 million
in electric and gas revenues, respectively, on an annual basis.
|
•
|
Energy Strong Program I (ES I) Recovery Filing
—In August 2018, the BPU approved recovery of PSE&G’s ES I capital investment petition for an annual revenue requirement increase of
$0.6 million
and
$0.1 million
associated with electric and gas investment costs, respectively. This represents the final recovery of electric and gas ES I capital investment costs consistent with the BPU Order of Approval of the Energy Strong Program.
|
•
|
WNC
—In October 2018, the BPU approved PSE&G’s 2017-2018 WNC petition on a provisional basis allowing a net recovery of
$14 million
to be collected over the 2018-2019 Winter Period with the new rate effective November 1, 2018. The
$14 million
net recovery is the result of
$9 million
of excess revenues from the colder than normal 2017-2018 Winter Period offset by
$23 million
of remaining prior Winter Period undercollection.
|
•
|
SBC
—In February 2018, the BPU approved PSE&G’s petition to increase electric rates by approximately
$20 million
on an annual basis and to decrease gas rates by approximately
$0.8 million
on an annual basis, in order to recover electric and gas costs incurred through May 31, 2017 under its Energy Efficiency and Renewable Energy and Social Programs. The new rates were effective April 1, 2018.
|
•
|
BGSS
—In September 2018, the BPU provisionally approved PSE&G’s request to decrease its BGSS rates which will decrease annual BGSS revenues by
$26 million
. The BGSS rate decreased from approximately
37 cents
to
35 cents
per therm for residential gas customers effective October 1, 2018.
|
|
|
|
|
|
|
|
||||
|
|
|
As of December 31,
|
|
||||||
|
|
|
2018
|
|
2017
|
|
||||
|
|
|
Millions
|
|
||||||
|
PSE&G
|
|
|
|
|
|
||||
|
Life Insurance and Supplemental Benefits
|
|
$
|
121
|
|
|
$
|
130
|
|
|
|
Solar Loans
|
|
149
|
|
|
150
|
|
|
||
|
Power
|
|
|
|
||||||
|
Partnerships and Corporate Joint Ventures (Equity Method Investments) (A)
|
|
86
|
|
|
87
|
|
|
||
|
Energy Holdings
|
|
|
|
|
|
||||
|
Lease Investments
|
|
540
|
|
|
565
|
|
|
||
|
Total Long-Term Investments
|
|
$
|
896
|
|
|
$
|
932
|
|
|
|
|
|
|
|
|
|
(A)
|
During the three years ended December 31,
2018
,
2017
and
2016
, dividends from these investments were
$16 million
,
$18 million
and
$18 million
, respectively.
|
|
|
|
|
|
|
|
||||
|
|
|
As of December 31,
|
|
||||||
|
|
|
2018
|
|
2017
|
|
||||
|
|
|
Millions
|
|
||||||
|
Lease Receivables (net of Non-Recourse Debt)
|
|
$
|
504
|
|
|
$
|
546
|
|
|
|
Estimated Residual Value of Leased Assets
|
|
326
|
|
|
326
|
|
|
||
|
Total Investment in Rental Receivables
|
|
830
|
|
|
872
|
|
|
||
|
Unearned and Deferred Income
|
|
(290
|
)
|
|
(307
|
)
|
|
||
|
Gross Investments in Leases
|
|
540
|
|
|
565
|
|
|
||
|
Deferred Tax Liabilities
|
|
(354
|
)
|
|
(480
|
)
|
|
||
|
Net Investments in Leases
|
|
$
|
186
|
|
|
$
|
85
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
Years Ended December 31,
|
|
||||||||||
|
|
|
2018
|
|
2017
|
|
2016
|
|
||||||
|
|
|
Millions
|
|
||||||||||
|
Pre-Tax Income (Loss) from Leases
|
|
$
|
17
|
|
|
$
|
(69
|
)
|
|
$
|
(135
|
)
|
|
|
Income Tax Expense (Benefit) on Income from Leases
|
|
$
|
6
|
|
|
$
|
(26
|
)
|
|
$
|
(51
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
As of December 31,
|
|
|
|
|
|
||||||
|
Name
|
|
2018
|
|
2017
|
|
Location
|
|
% Owned
|
|
||||
|
|
|
Millions
|
|
|
|
|
|
||||||
|
Power
|
|
|
|
|
|
|
|
|
|
||||
|
Keystone Fuels, LLC
|
|
$
|
9
|
|
|
$
|
8
|
|
|
PA
|
|
23%
|
|
|
Conemaugh Fuels, LLC
|
|
8
|
|
|
8
|
|
|
PA
|
|
23%
|
|
||
|
Kalaeloa
|
|
69
|
|
|
71
|
|
|
HI
|
|
50%
|
|
||
|
Total
|
|
$
|
86
|
|
|
$
|
87
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Outstanding Loans by Class of Customer
|
|
||||||||
|
|
|
As of December 31,
|
|
||||||
|
Consumer Loans
|
|
2018
|
|
2017
|
|
||||
|
|
|
Millions
|
|
||||||
|
Commercial/Industrial
|
|
$
|
164
|
|
|
$
|
158
|
|
|
|
Residential
|
|
9
|
|
|
10
|
|
|
||
|
Total
|
|
$
|
173
|
|
|
$
|
168
|
|
|
|
Current Portion (included in Other Current Assets)
|
|
(24
|
)
|
|
(18
|
)
|
|
||
|
Noncurrent Portion (included in Long-Term Investments)
|
|
$
|
149
|
|
|
$
|
150
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
|
Lease Receivables, Net of
Non-Recourse Debt
|
|
||
|
Counterparties’ Credit Rating Standard & Poor’s (S&P) as of December 31, 2018
|
|
As of December 31, 2018
|
|
||
|
|
|
Millions
|
|
||
|
AA
|
|
$
|
14
|
|
|
|
BBB+ — BBB-
|
|
316
|
|
|
|
|
BB
|
|
133
|
|
|
|
|
NR
|
|
41
|
|
|
|
|
Total
|
|
$
|
504
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Asset
|
|
Location
|
|
Gross
Investment
|
|
%
Owned
|
|
Total MW
|
|
Fuel
Type
|
|
Counterparties’
S&P Credit
Ratings
|
|
Counterparty
|
|
||||
|
|
|
|
|
Millions
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Powerton Station Units 5 and 6
|
|
IL
|
|
$
|
133
|
|
|
64
|
%
|
|
1,538
|
|
|
Coal
|
|
BB
|
|
NRG Energy, Inc.
|
|
|
Joliet Station Units 7 and 8
|
|
IL
|
|
$
|
85
|
|
|
64
|
%
|
|
1,036
|
|
|
Gas
|
|
BB
|
|
NRG Energy, Inc.
|
|
|
Shawville Station Units 1, 2, 3 and 4
|
|
PA
|
|
$
|
78
|
|
|
100
|
%
|
|
596
|
|
|
Gas
|
|
NR
|
|
REMA (A)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(A)
|
REMA emerged from Chapter 11 of the U.S. Bankruptcy Code in December 2018. For additional information, see
Note 8. Long-Term Investments
.
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
As of December 31, 2018
|
|
||||||||||||||
|
|
|
Cost
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized
Losses
|
|
Fair
Value
|
|
||||||||
|
|
|
Millions
|
|
||||||||||||||
|
Equity Securities
|
|
|
|
|
|
|
|
|
|
||||||||
|
Domestic
|
|
$
|
447
|
|
|
$
|
153
|
|
|
$
|
(29
|
)
|
|
$
|
571
|
|
|
|
International
|
|
323
|
|
|
36
|
|
|
(30
|
)
|
|
329
|
|
|
||||
|
Total Equity Securities
|
|
770
|
|
|
189
|
|
|
(59
|
)
|
|
900
|
|
|
||||
|
Available-for Sale Debt Securities
|
|
|
|
|
|
|
|
|
|
||||||||
|
Government
|
|
498
|
|
|
2
|
|
|
(9
|
)
|
|
491
|
|
|
||||
|
Corporate
|
|
501
|
|
|
1
|
|
|
(15
|
)
|
|
487
|
|
|
||||
|
Total Available-for-Sale Debt Securities
|
|
999
|
|
|
3
|
|
|
(24
|
)
|
|
978
|
|
|
||||
|
Total NDT Fund Investments
|
|
$
|
1,769
|
|
|
$
|
192
|
|
|
$
|
(83
|
)
|
|
$
|
1,878
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
|
|
As of December 31, 2017
|
|
|||||||||||||||
|
|
|
Cost
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized
Losses
|
|
Fair
Value
|
|
|||||||||
|
|
|
Millions
|
|
|||||||||||||||
|
Equity Securities
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Domestic
|
|
$
|
497
|
|
|
$
|
245
|
|
|
$
|
(2
|
)
|
|
$
|
740
|
|
|
|
|
International
|
|
311
|
|
|
99
|
|
—
|
|
(3
|
)
|
|
407
|
|
|
||||
|
Total Equity Securities
|
|
808
|
|
|
344
|
|
|
(5
|
)
|
|
1,147
|
|
|
|||||
|
Available-for Sale Debt Securities
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Government
|
|
586
|
|
|
2
|
|
|
(4
|
)
|
|
584
|
|
|
|||||
|
Corporate
|
|
400
|
|
|
4
|
|
|
(2
|
)
|
|
402
|
|
|
|||||
|
Total Available-for-Sale Debt Securities
|
|
986
|
|
|
6
|
|
|
(6
|
)
|
|
986
|
|
|
|||||
|
Total NDT Fund Investments
|
|
$
|
1,794
|
|
|
$
|
350
|
|
|
$
|
(11
|
)
|
|
$
|
2,133
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
As of December 31, 2018
|
|
As of December 31, 2017
|
|
||||
|
|
|
Millions
|
|
||||||
|
Accounts Receivable
|
|
$
|
17
|
|
|
$
|
24
|
|
|
|
Accounts Payable
|
|
$
|
5
|
|
|
$
|
74
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
|
|
As of December 31, 2018
|
|
As of December 31, 2017
|
|
||||||||||||||||||||||||||||
|
|
|
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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Domestic
|
|
$
|
147
|
|
|
$
|
(26
|
)
|
|
$
|
5
|
|
|
$
|
(3
|
)
|
|
$
|
40
|
|
|
$
|
(2
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
International
|
|
131
|
|
|
(28
|
)
|
|
5
|
|
|
(2
|
)
|
|
29
|
|
|
(3
|
)
|
|
2
|
|
|
—
|
|
|
||||||||
|
Total Equity Securities
|
|
278
|
|
|
(54
|
)
|
|
10
|
|
|
(5
|
)
|
|
69
|
|
|
(5
|
)
|
|
2
|
|
|
—
|
|
|
||||||||
|
Available-for-Sale Debt Securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Government (B)
|
|
51
|
|
|
—
|
|
|
317
|
|
|
(9
|
)
|
|
343
|
|
|
(2
|
)
|
|
91
|
|
|
(2
|
)
|
|
||||||||
|
Corporate (C)
|
|
150
|
|
|
(5
|
)
|
|
222
|
|
|
(10
|
)
|
|
191
|
|
|
(1
|
)
|
|
27
|
|
|
(1
|
)
|
|
||||||||
|
Total Available-for-Sale Debt Securities
|
|
201
|
|
|
(5
|
)
|
|
539
|
|
|
(19
|
)
|
|
534
|
|
|
(3
|
)
|
|
118
|
|
|
(3
|
)
|
|
||||||||
|
NDT Trust Investments
|
|
$
|
479
|
|
|
$
|
(59
|
)
|
|
$
|
549
|
|
|
$
|
(24
|
)
|
|
$
|
603
|
|
|
$
|
(8
|
)
|
|
$
|
120
|
|
|
$
|
(3
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(A)
|
Equity Securities—Investments in marketable equity securities within the NDT Fund are primarily in common stocks
|
(B)
|
Debt Securities (Government)—Unrealized gains and losses on these securities are recorded in Accumulated Other Comprehensive Income (Loss). The 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
December 31, 2018
.
|
(C)
|
Debt Securities (Corporate)—Unrealized gains and losses on these securities are recorded in Accumulated Other Comprehensive Income (Loss). 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
December 31, 2018
.
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
Years Ended December 31,
|
|
||||||||||
|
|
|
2018
|
|
2017
|
|
2016
|
|
||||||
|
|
|
Millions
|
|
||||||||||
|
Proceeds from Sales (A)
|
|
$
|
1,398
|
|
|
$
|
2,137
|
|
|
$
|
711
|
|
|
|
Net Realized Gains (Losses):
|
|
|
|
|
|
|
|
||||||
|
Gross Realized Gains
|
|
$
|
121
|
|
|
$
|
157
|
|
|
$
|
53
|
|
|
|
Gross Realized Losses
|
|
(51
|
)
|
|
(23
|
)
|
|
(32
|
)
|
|
|||
|
Net Realized Gains (Losses) on NDT Fund (B)
|
|
$
|
70
|
|
|
$
|
134
|
|
|
$
|
21
|
|
|
|
Unrealized Gains (Losses) on Equity Securities in NDT Fund (C)
|
|
(209
|
)
|
|
N/A
|
|
|
N/A
|
|
|
|||
|
Other-Than-Temporary-Impairments (OTTI)
|
|
—
|
|
|
(12
|
)
|
|
(28
|
)
|
|
|||
|
Net Gains (Losses) on NDT Fund Investments
|
|
$
|
(139
|
)
|
|
$
|
122
|
|
|
$
|
(7
|
)
|
|
|
|
|
|
|
|
|
|
|
(A)
|
Includes activity in accounts related to the liquidation of funds being transitioned to new managers.
|
(B)
|
The cost of these securities was determined on the basis of specific identification.
|
(C)
|
Effective January 1, 2018, unrealized gains (losses) on equity securities are recorded in Net Income instead of Other Comprehensive Income (Loss).
|
|
|
|
|
|
||
|
Time Frame
|
|
Fair Value
|
|
||
|
|
|
Millions
|
|
||
|
Less than one year
|
|
$
|
13
|
|
|
|
1 - 5 years
|
|
254
|
|
|
|
|
6 - 10 years
|
|
211
|
|
|
|
|
11 - 15 years
|
|
40
|
|
|
|
|
16 - 20 years
|
|
77
|
|
|
|
|
Over 20 years
|
|
383
|
|
|
|
|
Total NDT Available-for-Sale Debt Securities
|
|
$
|
978
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
As of December 31, 2018
|
|
||||||||||||||
|
|
|
Cost
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized
Losses
|
|
Fair
Value
|
|
||||||||
|
|
|
Millions
|
|
||||||||||||||
|
Equity Securities
|
|
|
|
|
|
|
|
|
|
||||||||
|
Domestic
|
|
$
|
22
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
23
|
|
|
|
International
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
||||
|
Total Equity Securities
|
|
22
|
|
|
1
|
|
|
—
|
|
|
23
|
|
|
||||
|
Available-for-Sale Debt Securities
|
|
|
|
|
|
|
|
|
|
||||||||
|
Government
|
|
110
|
|
|
1
|
|
|
(2
|
)
|
|
109
|
|
|
||||
|
Corporate
|
|
96
|
|
|
—
|
|
|
(4
|
)
|
|
92
|
|
|
||||
|
Total Available-for-Sale Debt Securities
|
|
206
|
|
|
1
|
|
|
(6
|
)
|
|
201
|
|
|
||||
|
Total Rabbi Trust Investments
|
|
$
|
228
|
|
|
$
|
2
|
|
|
$
|
(6
|
)
|
|
$
|
224
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
As of December 31, 2017
|
|
||||||||||||||
|
|
|
Cost
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized
Losses
|
|
Fair
Value
|
|
||||||||
|
|
|
Millions
|
|
||||||||||||||
|
Equity Securities
|
|
|
|
|
|
|
|
|
|
||||||||
|
Domestic
|
|
$
|
24
|
|
|
$
|
3
|
|
|
$
|
—
|
|
|
$
|
27
|
|
|
|
International
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
||||
|
Total Equity Securities
|
|
24
|
|
|
3
|
|
|
—
|
|
|
27
|
|
|
||||
|
Available-for-Sale Debt Securities
|
|
|
|
|
|
|
|
|
|
||||||||
|
Government
|
|
85
|
|
|
1
|
|
|
(1
|
)
|
|
85
|
|
|
||||
|
Corporate
|
|
118
|
|
|
2
|
|
|
(1
|
)
|
|
119
|
|
|
||||
|
Total Available-for-Sale Debt Securities
|
|
203
|
|
|
3
|
|
|
(2
|
)
|
|
204
|
|
|
||||
|
Total Rabbi Trust Investments
|
|
$
|
227
|
|
|
$
|
6
|
|
|
$
|
(2
|
)
|
|
$
|
231
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
As of December 31, 2018
|
|
As of December 31, 2017
|
|
||||
|
|
|
Millions
|
|
||||||
|
Accounts Receivable
|
|
$
|
2
|
|
|
$
|
2
|
|
|
|
Accounts Payable
|
|
$
|
—
|
|
|
$
|
1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
|
|
As of December 31, 2018
|
|
As of December 31, 2017
|
|
||||||||||||||||||||||||||||
|
|
|
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
|
|
||||||||||||||||||||||||||||||
|
Available-for-Sale Debt Securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Government (A)
|
|
$
|
18
|
|
|
$
|
—
|
|
|
$
|
59
|
|
|
$
|
(2
|
)
|
|
$
|
28
|
|
|
$
|
—
|
|
|
$
|
25
|
|
|
$
|
(1
|
)
|
|
|
Corporate (B)
|
|
50
|
|
|
(3
|
)
|
|
29
|
|
|
(1
|
)
|
|
39
|
|
|
(1
|
)
|
|
9
|
|
|
—
|
|
|
||||||||
|
Total Available-for-Sale Debt Securities
|
|
68
|
|
|
(3
|
)
|
|
88
|
|
|
(3
|
)
|
|
67
|
|
|
(1
|
)
|
|
34
|
|
|
(1
|
)
|
|
||||||||
|
Rabbi Trust Investments
|
|
$
|
68
|
|
|
$
|
(3
|
)
|
|
$
|
88
|
|
|
$
|
(3
|
)
|
|
$
|
67
|
|
|
$
|
(1
|
)
|
|
$
|
34
|
|
|
$
|
(1
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(A)
|
Debt Securities (Government)—Unrealized gains and losses on these securities are recorded in Accumulated Other Comprehensive Income (Loss). The 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
December 31, 2018
.
|
(B)
|
Debt Securities (Corporate)—Unrealized gains and losses on these securities are recorded in Accumulated Other Comprehensive Income (Loss). 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
December 31, 2018
.
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
Years Ended December 31,
|
|
||||||||||
|
|
|
2018
|
|
2017
|
|
2016
|
|
||||||
|
|
|
Millions
|
|
||||||||||
|
Proceeds from Rabbi Trust Sales (A)
|
|
$
|
103
|
|
|
$
|
182
|
|
|
$
|
113
|
|
|
|
Net Realized Gains (Losses):
|
|
|
|
|
|
|
|
||||||
|
Gross Realized Gains
|
|
$
|
2
|
|
|
$
|
17
|
|
|
$
|
6
|
|
|
|
Gross Realized Losses
|
|
(4
|
)
|
|
(5
|
)
|
|
(5
|
)
|
|
|||
|
Net Realized Gains (Losses) on Rabbi Trust (B)
|
|
(2
|
)
|
|
12
|
|
|
1
|
|
|
|||
|
Unrealized Gains (Losses) on Equity Securities in Rabbi Trust (C)
|
|
(2
|
)
|
|
N/A
|
|
|
N/A
|
|
|
|||
|
Net Gains (Losses) on Rabbi Trust Investments
|
|
$
|
(4
|
)
|
|
$
|
12
|
|
|
$
|
1
|
|
|
|
|
|
|
|
|
|
|
|
(A)
|
Includes activity in accounts related to the liquidation of funds being transitioned to new managers.
|
(B)
|
The cost of these securities was determined on the basis of specific identification.
|
(C)
|
Effective January 1, 2018, unrealized gains (losses) on equity securities are recorded in Net Income instead of Other Comprehensive Income (Loss).
|
|
|
|
|
|
||
|
Time Frame
|
|
Fair Value
|
|
||
|
|
|
Millions
|
|
||
|
Less than one year
|
|
$
|
1
|
|
|
|
1 - 5 years
|
|
35
|
|
|
|
|
6 - 10 years
|
|
27
|
|
|
|
|
11 - 15 years
|
|
8
|
|
|
|
|
16 - 20 years
|
|
21
|
|
|
|
|
Over 20 years
|
|
109
|
|
|
|
|
Total Rabbi Trust Available-for-Sale Debt Securities
|
|
$
|
201
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
As of December 31,
|
|
As of December 31,
|
|
||||
|
|
|
2018
|
|
2017
|
|
||||
|
|
|
Millions
|
|
||||||
|
PSE&G
|
|
$
|
45
|
|
|
$
|
46
|
|
|
|
Power
|
|
56
|
|
|
57
|
|
|
||
|
Other
|
|
123
|
|
|
128
|
|
|
||
|
Total Rabbi Trust Investments
|
|
$
|
224
|
|
|
$
|
231
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
Emissions Allowances
|
|
RECs
|
|
Total Other Intangibles
|
|
||||||
|
|
|
Millions
|
|
||||||||||
|
Balance as of January 1, 2017
|
|
$
|
54
|
|
|
$
|
44
|
|
|
$
|
98
|
|
|
|
Retirements
|
|
(7
|
)
|
|
(93
|
)
|
|
(100
|
)
|
|
|||
|
Purchases
|
|
27
|
|
|
90
|
|
|
117
|
|
|
|||
|
Sales and Transfers, net
|
|
—
|
|
|
(1
|
)
|
|
(1
|
)
|
|
|||
|
Balance as of December 31, 2017
|
|
$
|
74
|
|
|
$
|
40
|
|
|
$
|
114
|
|
|
|
Retirements
|
|
(26
|
)
|
|
(90
|
)
|
|
(116
|
)
|
|
|||
|
Purchases
|
|
36
|
|
|
110
|
|
|
146
|
|
|
|||
|
Sales and Transfers, net
|
|
—
|
|
|
(1
|
)
|
|
(1
|
)
|
|
|||
|
Balance as of December 31, 2018
|
|
$
|
84
|
|
|
$
|
59
|
|
|
$
|
143
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
PSEG
|
|
PSE&G
|
|
Power
|
|
Other
|
|
||||||||
|
|
|
Millions
|
|
||||||||||||||
|
ARO Liability as of January 1, 2017
|
|
$
|
726
|
|
|
$
|
213
|
|
|
$
|
511
|
|
|
$
|
2
|
|
|
|
Liabilities Settled
|
|
(29
|
)
|
|
(8
|
)
|
|
(21
|
)
|
|
—
|
|
|
||||
|
Liabilities Incurred
|
|
1
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
||||
|
Accretion Expense
|
|
30
|
|
|
—
|
|
|
30
|
|
|
—
|
|
|
||||
|
Accretion Expense Deferred and Recovered in Rate Base (A)
|
|
12
|
|
|
12
|
|
|
—
|
|
|
—
|
|
|
||||
|
Revision to Present Values of Estimated Cash Flows
|
|
284
|
|
|
(5
|
)
|
|
289
|
|
|
—
|
|
|
||||
|
ARO Liability as of December 31, 2017
|
|
$
|
1,024
|
|
|
$
|
212
|
|
|
$
|
810
|
|
|
$
|
2
|
|
|
|
Liabilities Settled
|
|
(10
|
)
|
|
(9
|
)
|
|
(1
|
)
|
|
—
|
|
|
||||
|
Liabilities Incurred
|
|
1
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
||||
|
Accretion Expense
|
|
41
|
|
|
—
|
|
|
41
|
|
|
—
|
|
|
||||
|
Accretion Expense Deferred and Recovered in Rate Base (A)
|
|
12
|
|
|
12
|
|
|
—
|
|
|
—
|
|
|
||||
|
Revision to Present Values of Estimated Cash Flows
|
|
(5
|
)
|
|
87
|
|
|
(93
|
)
|
|
1
|
|
|
||||
|
ARO Liability as of December 31, 2018
|
|
$
|
1,063
|
|
|
$
|
302
|
|
|
$
|
758
|
|
|
$
|
3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(A)
|
Not reflected as expense in Consolidated Statements of Operations
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
Pension Benefits
|
|
Other Benefits
|
|
||||||||||||
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
||||||||
|
|
|
Millions
|
|
||||||||||||||
|
Change in Benefit Obligation
|
|
|
|
|
|
|
|
|
|
||||||||
|
Benefit Obligation at Beginning of Year (A)
|
|
$
|
6,359
|
|
|
$
|
5,772
|
|
|
$
|
1,976
|
|
|
$
|
1,754
|
|
|
|
Service Cost
|
|
130
|
|
|
114
|
|
|
18
|
|
|
17
|
|
|
||||
|
Interest Cost
|
|
208
|
|
|
204
|
|
|
66
|
|
|
63
|
|
|
||||
|
Actuarial (Gain) Loss
|
|
(460
|
)
|
|
564
|
|
|
(222
|
)
|
|
199
|
|
|
||||
|
Gross Benefits Paid
|
|
(316
|
)
|
|
(295
|
)
|
|
(76
|
)
|
|
(57
|
)
|
|
||||
|
Plan Amendments
|
|
—
|
|
|
—
|
|
|
(559
|
)
|
|
—
|
|
|
||||
|
Benefit Obligation at End of Year (A)
|
|
$
|
5,921
|
|
|
$
|
6,359
|
|
|
$
|
1,203
|
|
|
$
|
1,976
|
|
|
|
Change in Plan Assets
|
|
|
|
|
|
|
|
|
|
||||||||
|
Fair Value of Assets at Beginning of Year
|
|
$
|
5,812
|
|
|
$
|
5,193
|
|
|
$
|
511
|
|
|
$
|
420
|
|
|
|
Actual Return on Plan Assets
|
|
(388
|
)
|
|
903
|
|
|
(36
|
)
|
|
77
|
|
|
||||
|
Employer Contributions
|
|
12
|
|
|
11
|
|
|
89
|
|
|
71
|
|
|
||||
|
Gross Benefits Paid
|
|
(316
|
)
|
|
(295
|
)
|
|
(76
|
)
|
|
(57
|
)
|
|
||||
|
Fair Value of Assets at End of Year
|
|
$
|
5,120
|
|
|
$
|
5,812
|
|
|
$
|
488
|
|
|
$
|
511
|
|
|
|
Funded Status
|
|
|
|
|
|
|
|
|
|
||||||||
|
Funded Status (Plan Assets less Benefit Obligation)
|
|
$
|
(801
|
)
|
|
$
|
(547
|
)
|
|
$
|
(715
|
)
|
|
$
|
(1,465
|
)
|
|
|
Additional Amounts Recognized in the Consolidated Balance Sheets
|
|
|
|
|
|
|
|
|
|
||||||||
|
Current Accrued Benefit Cost
|
|
(10
|
)
|
|
(10
|
)
|
|
(11
|
)
|
|
(10
|
)
|
|
||||
|
Noncurrent Accrued Benefit Cost
|
|
(791
|
)
|
|
(537
|
)
|
|
(704
|
)
|
|
(1,455
|
)
|
|
||||
|
Amounts Recognized
|
|
$
|
(801
|
)
|
|
$
|
(547
|
)
|
|
$
|
(715
|
)
|
|
$
|
(1,465
|
)
|
|
|
Additional Amounts Recognized in Accumulated Other Comprehensive Income (Loss), Regulated Assets and Deferred Assets (B)
|
|
|
|
||||||||||||||
|
Prior Service Cost
|
|
$
|
(28
|
)
|
|
$
|
(46
|
)
|
|
$
|
(561
|
)
|
|
$
|
(3
|
)
|
|
|
Net Actuarial Loss
|
|
2,005
|
|
|
1,721
|
|
|
420
|
|
|
629
|
|
|
||||
|
Total
|
|
$
|
1,977
|
|
|
$
|
1,675
|
|
|
$
|
(141
|
)
|
|
$
|
626
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(A)
|
Represents projected benefit obligation for pension benefits and the accumulated postretirement benefit obligation for other benefits. The vested benefit obligation is the actuarial present value of the vested benefits to which the employee is currently entitled but based on the employee’s expected date of separation of retirement.
|
(B)
|
Includes $
619 million
($
360 million
, after-tax) and $
683 million
($
406 million
, after-tax) in Accumulated Other Comprehensive Loss related to Pension and OPEB as of
December 31, 2018
and
2017
, respectively. Also includes Regulatory Assets of
$1,090 million
and Deferred Assets of
$127 million
as of
December 31, 2018
and Regulatory Assets of
$1,485 million
and Deferred Assets of
$133 million
as of
December 31, 2017
.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
Pension Benefits Years Ended December 31,
|
|
Other Benefits Years Ended December 31,
|
|
||||||||||||||||||||
|
|
|
2018
|
|
2017
|
|
2016
|
|
2018
|
|
2017
|
|
2016
|
|
||||||||||||
|
|
|
Millions
|
|
||||||||||||||||||||||
|
Components of Net Periodic Benefit (Credits) Costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Service Cost (included in O&M Expense)
|
|
$
|
130
|
|
|
$
|
114
|
|
|
$
|
109
|
|
|
$
|
18
|
|
|
$
|
17
|
|
|
$
|
17
|
|
|
|
Non-Service Components of Pension and OPEB (Credits) Costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Interest Cost
|
|
208
|
|
|
204
|
|
|
202
|
|
|
66
|
|
|
63
|
|
|
59
|
|
|
||||||
|
Expected Return on Plan Assets
|
|
(441
|
)
|
|
(394
|
)
|
|
(394
|
)
|
|
(41
|
)
|
|
(34
|
)
|
|
(31
|
)
|
|
||||||
|
Amortization of Net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Prior Service Credit
|
|
(18
|
)
|
|
(18
|
)
|
|
(19
|
)
|
|
(1
|
)
|
|
(11
|
)
|
|
(14
|
)
|
|
||||||
|
Actuarial Loss
|
|
85
|
|
|
97
|
|
|
158
|
|
|
64
|
|
|
51
|
|
|
40
|
|
|
||||||
|
Non-Service Components of Pension and OPEB (Credits) Costs
|
|
(166
|
)
|
|
(111
|
)
|
|
(53
|
)
|
|
88
|
|
|
69
|
|
|
54
|
|
|
||||||
|
Total Benefit (Credits) Costs
|
|
$
|
(36
|
)
|
|
$
|
3
|
|
|
$
|
56
|
|
|
$
|
106
|
|
|
$
|
86
|
|
|
$
|
71
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
Pension Benefits
Years Ended December 31,
|
|
Other Benefits
Years Ended December 31,
|
|
||||||||||||||||||||
|
|
|
2018
|
|
2017
|
|
2016
|
|
2018
|
|
2017
|
|
2016
|
|
||||||||||||
|
|
|
Millions
|
|
||||||||||||||||||||||
|
PSE&G
|
|
$
|
(31
|
)
|
|
$
|
(4
|
)
|
|
$
|
29
|
|
|
$
|
68
|
|
|
$
|
54
|
|
|
$
|
43
|
|
|
|
Power
|
|
(9
|
)
|
|
1
|
|
|
16
|
|
|
32
|
|
|
27
|
|
|
23
|
|
|
||||||
|
Other
|
|
4
|
|
|
6
|
|
|
11
|
|
|
6
|
|
|
5
|
|
|
5
|
|
|
||||||
|
Total Benefit (Credits) Costs
|
|
$
|
(36
|
)
|
|
$
|
3
|
|
|
$
|
56
|
|
|
$
|
106
|
|
|
$
|
86
|
|
|
$
|
71
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
Pension
|
|
OPEB
|
|
||||||||||||
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
||||||||
|
|
|
Millions
|
|
||||||||||||||
|
Net Actuarial (Gain) Loss in Current Period
|
|
$
|
369
|
|
|
$
|
55
|
|
|
$
|
(145
|
)
|
|
$
|
156
|
|
|
|
Amortization of Net Actuarial Gain (Loss)
|
|
(85
|
)
|
|
(97
|
)
|
|
(64
|
)
|
|
(50
|
)
|
|
||||
|
Prior Service Cost (Credit) in current period
|
|
—
|
|
|
—
|
|
|
(559
|
)
|
|
—
|
|
|
||||
|
Amortization of Prior Service Credit
|
|
18
|
|
|
18
|
|
|
1
|
|
|
11
|
|
|
||||
|
Total
|
|
$
|
302
|
|
|
$
|
(24
|
)
|
|
$
|
(767
|
)
|
|
$
|
117
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
Pension
Benefits
|
|
Other
Benefits
|
|
||||
|
|
|
2019
|
|
2019
|
|
||||
|
|
|
Millions
|
|
||||||
|
Actuarial Loss
|
|
$
|
107
|
|
|
$
|
50
|
|
|
|
Prior Service Credit
|
|
$
|
(18
|
)
|
|
$
|
(128
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
Recurring Fair Value Measurements as of December 31, 2018
|
|
||||||||||||||
|
|
|
|
|
Quoted Market Prices
for Identical Assets
|
|
Significant Other
Observable Inputs
|
|
Significant
Unobservable Inputs
|
|
||||||||
|
Description
|
|
Total
|
|
(Level 1)
|
|
(Level 2)
|
|
(Level 3)
|
|
||||||||
|
|
|
Millions
|
|
||||||||||||||
|
Cash Equivalents (A)
|
|
$
|
99
|
|
|
$
|
88
|
|
|
$
|
11
|
|
|
$
|
—
|
|
|
|
Equity Securities
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Common Stock (B)
|
|
1,156
|
|
|
1,156
|
|
|
—
|
|
|
—
|
|
|
||||
|
Commingled (C)
|
|
1,338
|
|
|
960
|
|
|
378
|
|
|
—
|
|
|
||||
|
Preferred Stock (B)
|
|
7
|
|
|
7
|
|
|
—
|
|
|
—
|
|
|
||||
|
Other (D)
|
|
1
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
||||
|
Debt Securities (E)
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
U.S. Treasury
|
|
526
|
|
|
—
|
|
|
526
|
|
|
—
|
|
|
||||
|
Government—Other
|
|
302
|
|
|
—
|
|
|
302
|
|
|
—
|
|
|
||||
|
Corporate
|
|
948
|
|
|
—
|
|
|
948
|
|
|
—
|
|
|
||||
|
Subtotal Fair Value
|
|
$
|
4,377
|
|
|
$
|
2,212
|
|
|
$
|
2,165
|
|
|
$
|
—
|
|
|
|
Measured at net asset value practical expedient
|
|
|
|
|
|
|
|
|
|
||||||||
|
Commingled—Equities (F)
|
|
1,208
|
|
|
|
|
|
|
|
|
|||||||
|
Private Equity (G)
|
|
10
|
|
|
|
|
|
|
|
|
|||||||
|
Total Fair Value (H)
|
|
$
|
5,595
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
Recurring Fair Value Measurements as of December 31, 2017
|
|
||||||||||||||
|
|
|
|
|
Quoted Market Prices
for Identical Assets
|
|
Significant Other
Observable Inputs
|
|
Significant
Unobservable Inputs
|
|
||||||||
|
Description
|
|
Total
|
|
(Level 1)
|
|
(Level 2)
|
|
(Level 3)
|
|
||||||||
|
|
|
Millions
|
|
||||||||||||||
|
Cash Equivalents (A)
|
|
$
|
133
|
|
|
$
|
117
|
|
|
$
|
16
|
|
|
$
|
—
|
|
|
|
Equity Securities
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Common Stock (B)
|
|
1,275
|
|
|
1,275
|
|
|
—
|
|
|
—
|
|
|
||||
|
Commingled (C)
|
|
1,401
|
|
|
1,218
|
|
|
183
|
|
|
—
|
|
|
||||
|
Preferred Stock (B)
|
|
6
|
|
|
6
|
|
|
—
|
|
|
—
|
|
|
||||
|
Debt Securities (E)
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
U.S. Treasury
|
|
571
|
|
|
—
|
|
|
571
|
|
|
—
|
|
|
||||
|
Government—Other
|
|
272
|
|
|
—
|
|
|
272
|
|
|
—
|
|
|
||||
|
Corporate
|
|
963
|
|
|
—
|
|
|
963
|
|
|
—
|
|
|
||||
|
Subtotal Fair Value
|
|
$
|
4,621
|
|
|
$
|
2,616
|
|
|
$
|
2,005
|
|
|
$
|
—
|
|
|
|
Measured at net asset value practical expedient
|
|
|
|
|
|
|
|
|
|
||||||||
|
Commingled—Equities (F)
|
|
1,675
|
|
|
|
|
|
|
|
|
|||||||
|
Private Equity (G)
|
|
14
|
|
|
|
|
|
|
|
|
|||||||
|
Total Fair Value (H)
|
|
$
|
6,310
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
(A)
|
The Collective Investment Fund publishes a daily net asset value (NAV) which participants may use for daily redemptions without restrictions (Level 1). Certain temporary investments are valued using inputs such as time-to-maturity, coupon rate, quality rating and current yield (Level 2).
|
(B)
|
Common stocks and preferred stocks are measured using observable data in active markets and considered Level 1.
|
(C)
|
Commingled Funds that allow daily redemption at their daily published NAV without restrictions are classified as Level 1. Commingled Funds that publish daily NAV but with certain near-term redemption restrictions which prevent redemption at the published daily NAV are classified as Level 2.
|
(D)
|
Investment in a publicly traded limited partnership.
|
(E)
|
Debt securities include mainly investment grade corporate and municipal bonds, U.S. Treasury obligations and Federal Agency asset-backed securities with a wide range of maturities. These investments are valued using an evaluated pricing approach that varies by asset class and reflects observable market information such as the most recent exchange price or quoted bid for similar securities. Market-based standard inputs typically include benchmark yields, reported trades, broker/dealer quotes and issuer spreads or the most recent quotes for similar securities which are a Level 2 measure.
|
(F)
|
Certain commingled equity funds are not included in the fair value hierarchy as they are measured at fair value using the NAV per share (or its equivalent) practical expedient. These funds do not meet the definition of readily determinable fair value due to limitations in published NAV (last business day of the month) and include certain redemption restrictions ranging from one to fifteen days advance notice prior to redemption days and limitations on withdrawals over 25% of the total fund. The objectives of these funds are mainly tracking the S&P Index or achieving long-term growth through investment in foreign equity securities and the MSCI Emerging Markets Index.
|
(G)
|
Private equity investments primarily include various limited partnerships that invest in either operating companies through acquisitions or developing a portfolio of non-US distressed investments to maximize total return on capital. These investments are valued at NAV (or its equivalent) on an annual basis and have significant redemption restrictions preventing redemption until fund liquidation and limited ability to sell these investments. Fund liquidation is not expected to occur for several more years. These investments have been removed from the fair value hierarchy in accordance with the guidance on NAV practical expedient.
|
(H)
|
Excludes net receivables of
$14 million
and
$13 million
at
December 31, 2018
and
2017
, respectively, which consist of interest, dividends and receivables and payables related to pending securities sales and purchases.
|
|
|
|
|
|
|
|
|
||||
|
Year
|
|
|
Pension
Benefits
|
|
Other Benefits
|
|
||||
|
|
|
|
Millions
|
|
||||||
|
2019
|
|
|
$
|
345
|
|
|
$
|
91
|
|
|
|
2020
|
|
|
341
|
|
|
95
|
|
|
||
|
2021
|
|
|
352
|
|
|
87
|
|
|
||
|
2022
|
|
|
364
|
|
|
88
|
|
|
||
|
2023
|
|
|
373
|
|
|
89
|
|
|
||
|
2024-2028
|
|
|
2,004
|
|
|
428
|
|
|
||
|
Total
|
|
|
$
|
3,779
|
|
|
$
|
878
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
Thrift Plan and Savings Plan
|
|
||||||||||
|
|
|
Years Ended December 31,
|
|
||||||||||
|
|
|
2018
|
|
2017
|
|
2016
|
|
||||||
|
|
|
Millions
|
|
||||||||||
|
PSE&G
|
|
$
|
26
|
|
|
$
|
25
|
|
|
$
|
24
|
|
|
|
Power
|
|
10
|
|
|
11
|
|
|
12
|
|
|
|||
|
Other
|
|
5
|
|
|
5
|
|
|
5
|
|
|
|||
|
Total Employer Matching Contributions
|
|
$
|
41
|
|
|
$
|
41
|
|
|
$
|
41
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
Pension Benefits
|
|
Other Benefits
|
|
||||||||||||
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
||||||||
|
|
|
Millions
|
|
||||||||||||||
|
Change in Benefit Obligation
|
|
|
|
|
|
|
|
|
|
||||||||
|
Benefit Obligation at Beginning of Year
|
|
$
|
320
|
|
|
$
|
262
|
|
|
$
|
542
|
|
|
$
|
452
|
|
|
|
Service Cost
|
|
30
|
|
|
27
|
|
|
18
|
|
|
15
|
|
|
||||
|
Interest Cost
|
|
12
|
|
|
11
|
|
|
20
|
|
|
19
|
|
|
||||
|
Actuarial (Gain) Loss
|
|
(38
|
)
|
|
22
|
|
|
(73
|
)
|
|
60
|
|
|
||||
|
Gross Benefits Paid
|
|
(3
|
)
|
|
(2
|
)
|
|
(6
|
)
|
|
(4
|
)
|
|
||||
|
Plan Amendments
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
||||
|
Benefit Obligation at End of Year (A)
|
|
$
|
321
|
|
|
$
|
320
|
|
|
$
|
501
|
|
|
$
|
542
|
|
|
|
Change in Plan Assets
|
|
|
|
|
|
|
|
|
|
||||||||
|
Fair Value of Assets at Beginning of Year
|
|
$
|
191
|
|
|
$
|
134
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
Actual Return on Plan Assets
|
|
(16
|
)
|
|
24
|
|
|
—
|
|
|
—
|
|
|
||||
|
Employer Contributions
|
|
40
|
|
|
35
|
|
|
6
|
|
|
4
|
|
|
||||
|
Gross Benefits Paid
|
|
(3
|
)
|
|
(2
|
)
|
|
(6
|
)
|
|
(4
|
)
|
|
||||
|
Fair Value of Assets at End of Year
|
|
$
|
212
|
|
|
$
|
191
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
Funded Status
|
|
|
|
|
|
|
|
|
|
||||||||
|
Funded Status (Plan Assets less Benefit Obligation)
|
|
$
|
(109
|
)
|
|
$
|
(129
|
)
|
|
$
|
(501
|
)
|
|
$
|
(542
|
)
|
|
|
Additional Amounts Recognized in the Consolidated Balance Sheets
|
|
|
|
|
|
|
|
|
|
||||||||
|
Accrued Pension Costs of Servco
|
|
$
|
(109
|
)
|
|
$
|
(129
|
)
|
|
N/A
|
|
|
N/A
|
|
|
||
|
OPEB Costs of Servco
|
|
N/A
|
|
|
N/A
|
|
|
(501
|
)
|
|
(542
|
)
|
|
||||
|
Amounts Recognized (B)
|
|
$
|
(109
|
)
|
|
$
|
(129
|
)
|
|
$
|
(501
|
)
|
|
$
|
(542
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
(A)
|
Represents projected benefit obligation for pension benefits and the accumulated postretirement benefit obligation for other benefits. The vested benefit obligation is the actuarial present value of the vested benefits to which the employee is currently entitled but based on the employee’s expected date of separation of retirement.
|
(B)
|
Amounts equal to the accrued pension and OPEB costs of Servco are offset in Long-Term Receivable of VIE on PSEG’s Consolidated Balance Sheets.
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
Recurring Fair Value Measurements as of December 31, 2018
|
|
||||||||||||||
|
|
|
|
|
Quoted Market Prices
for Identical Assets
|
|
Significant Other
Observable Inputs
|
|
Significant
Unobservable Inputs
|
|
||||||||
|
Description
|
|
Total
|
|
(Level 1)
|
|
(Level 2)
|
|
(Level 3)
|
|
||||||||
|
|
|
Millions
|
|
||||||||||||||
|
Commingled Equities (A)
|
|
$
|
141
|
|
|
$
|
—
|
|
|
$
|
141
|
|
|
$
|
—
|
|
|
|
Commingled Bonds (A)
|
|
71
|
|
|
—
|
|
|
71
|
|
|
—
|
|
|
||||
|
Total
|
|
$
|
212
|
|
|
$
|
—
|
|
|
$
|
212
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
Recurring Fair Value Measurements as of December 31, 2017
|
|
||||||||||||||
|
|
|
|
|
Quoted Market Prices
for Identical Assets
|
|
Significant Other
Observable Inputs
|
|
Significant
Unobservable Inputs
|
|
||||||||
|
Description
|
|
Total
|
|
(Level 1)
|
|
(Level 2)
|
|
(Level 3)
|
|
||||||||
|
|
|
Millions
|
|
||||||||||||||
|
Commingled Equities (A)
|
|
$
|
137
|
|
|
$
|
—
|
|
|
$
|
137
|
|
|
$
|
—
|
|
|
|
Commingled Bonds (A)
|
|
54
|
|
|
—
|
|
|
54
|
|
|
—
|
|
|
||||
|
Total
|
|
$
|
191
|
|
|
$
|
—
|
|
|
$
|
191
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(A)
|
Investments in commingled equity and bond funds have a readily determinable fair value as they publish a daily NAV available to investors which is the basis for current transactions and contain certain redemption restrictions requiring advance notice of one to two days for withdrawals (Level 2).
|
|
|
|
|
|
|
|
|
||||
|
Year
|
|
|
Pension
Benefits
|
|
Other Benefits
|
|
||||
|
|
|
|
Millions
|
|
||||||
|
2019
|
|
|
$
|
4
|
|
|
$
|
6
|
|
|
|
2020
|
|
|
6
|
|
|
8
|
|
|
||
|
2021
|
|
|
7
|
|
|
10
|
|
|
||
|
2022
|
|
|
9
|
|
|
12
|
|
|
||
|
2023
|
|
|
11
|
|
|
14
|
|
|
||
|
2024-2028
|
|
|
91
|
|
|
99
|
|
|
||
|
Total
|
|
|
$
|
128
|
|
|
$
|
149
|
|
|
|
|
|
|
|
|
|
|
•
|
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 December 31, 2018
|
|
As of December 31, 2017
|
|
||||
|
|
|
Millions
|
|
||||||
|
Face Value of Outstanding Guarantees
|
|
$
|
1,772
|
|
|
$
|
1,701
|
|
|
|
Exposure under Current Guarantees
|
|
$
|
198
|
|
|
$
|
153
|
|
|
|
|
|
|
|
|
|
||||
|
Letters of Credit Margin Posted
|
|
$
|
115
|
|
|
$
|
103
|
|
|
|
Letters of Credit Margin Received
|
|
$
|
26
|
|
|
$
|
32
|
|
|
|
|
|
|
|
|
|
||||
|
Cash Deposited and Received
|
|
|
|
|
|
||||
|
Counterparty Cash Margin Deposited
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
Counterparty Cash Margin Received
|
|
$
|
(10
|
)
|
|
$
|
(1
|
)
|
|
|
Net Broker Balance Deposited (Received)
|
|
$
|
403
|
|
|
$
|
147
|
|
|
|
|
|
|
|
|
|
||||
|
Additional Amounts Posted
|
|
|
|
|
|
||||
|
Other Letters of Credit
|
|
$
|
52
|
|
|
$
|
61
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
Auction Year
|
|
|
||||||||||
|
|
2016
|
|
2017
|
|
2018
|
|
2019
|
|
|
||||
|
36-Month Terms Ending
|
May 2019
|
|
|
May 2020
|
|
|
May 2021
|
|
|
May 2022
|
|
(A)
|
|
|
Load (MW)
|
2,800
|
|
|
2,800
|
|
|
2,900
|
|
|
2,800
|
|
|
|
|
$ per MWh
|
$96.38
|
|
$90.78
|
|
$91.77
|
|
$98.04
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
(A)
|
Prices set in the 2019 BGS auction will become effective on June 1, 2019 when the 2016 BGS auction agreements expire.
|
|
|
|
|
|
||
|
Fuel Type
|
|
Power's Share of Commitments through 2023
|
|
||
|
|
|
Millions
|
|
||
|
Nuclear Fuel
|
|
|
|
||
|
Uranium
|
|
$
|
222
|
|
|
|
Enrichment
|
|
$
|
358
|
|
|
|
Fabrication
|
|
$
|
167
|
|
|
|
Natural Gas
|
|
$
|
1,102
|
|
|
|
Coal
|
|
$
|
429
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
PSE&G
|
|
Power
|
|
Services
|
|
Other
|
|
Total
|
|
||||||||||
|
|
|
Millions
|
|
|
|
||||||||||||||||
|
2019
|
|
$
|
15
|
|
|
$
|
11
|
|
|
$
|
14
|
|
|
$
|
1
|
|
|
$
|
41
|
|
|
|
2020
|
|
11
|
|
|
13
|
|
|
14
|
|
|
2
|
|
|
40
|
|
|
|||||
|
2021
|
|
10
|
|
|
13
|
|
|
15
|
|
|
1
|
|
|
39
|
|
|
|||||
|
2022
|
|
8
|
|
|
14
|
|
|
15
|
|
|
1
|
|
|
38
|
|
|
|||||
|
2023
|
|
8
|
|
|
8
|
|
|
15
|
|
|
—
|
|
|
31
|
|
|
|||||
|
Thereafter
|
|
66
|
|
|
51
|
|
|
105
|
|
|
—
|
|
|
222
|
|
|
|||||
|
Total Minimum Lease Payments
|
|
$
|
118
|
|
|
$
|
110
|
|
|
$
|
178
|
|
|
$
|
5
|
|
|
$
|
411
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
As of December 31,
|
|
||||||
|
|
|
Maturity
|
|
2018
|
|
2017
|
|
||||
|
|
|
|
|
Millions
|
|
||||||
|
PSEG
|
|
|
|
|
|
|
|
||||
|
Term Loan:
|
|
|
|
|
|
|
|
||||
|
Variable
|
|
2019
|
|
$
|
350
|
|
|
$
|
700
|
|
|
|
Variable
|
|
2020
|
|
700
|
|
|
—
|
|
|
||
|
Total Term Loan
|
|
|
|
1,050
|
|
|
700
|
|
|
||
|
Senior Notes:
|
|
|
|
|
|
|
|
||||
|
1.60%
|
|
2019
|
|
400
|
|
|
400
|
|
|
||
|
2.00%
|
|
2021
|
|
300
|
|
|
300
|
|
|
||
|
2.65%
|
|
2022
|
|
700
|
|
|
700
|
|
|
||
|
Total Senior Notes
|
|
|
|
1,400
|
|
|
1,400
|
|
|
||
|
Principal Amount Outstanding
|
|
|
|
2,450
|
|
|
2,100
|
|
|
||
|
Amounts Due Within One Year
|
|
|
|
(750
|
)
|
|
—
|
|
|
||
|
Net Unamortized Discount and Debt Issuance Costs
|
|
|
|
(7
|
)
|
|
(9
|
)
|
|
||
|
Total Long-Term Debt of PSEG
|
|
|
|
$
|
1,693
|
|
|
$
|
2,091
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
As of December 31,
|
|
||||||
|
|
|
Maturity
|
|
2018
|
|
2017
|
|
||||
|
|
|
|
|
Millions
|
|
||||||
|
PSE&G
|
|
|
|
|
|
|
|
||||
|
First and Refunding Mortgage Bonds (A):
|
|
|
|
|
|
|
|
||||
|
9.25%
|
|
2021
|
|
$
|
134
|
|
|
$
|
134
|
|
|
|
8.00%
|
|
2037
|
|
7
|
|
|
7
|
|
|
||
|
5.00%
|
|
2037
|
|
8
|
|
|
8
|
|
|
||
|
Total First and Refunding Mortgage Bonds
|
|
|
|
149
|
|
|
149
|
|
|
||
|
Medium-Term Notes (MTNs) (A):
|
|
|
|
|
|
|
|
||||
|
5.30%
|
|
2018
|
|
—
|
|
|
400
|
|
|
||
|
2.30%
|
|
2018
|
|
—
|
|
|
350
|
|
|
||
|
1.80%
|
|
2019
|
|
250
|
|
|
250
|
|
|
||
|
2.00%
|
|
2019
|
|
250
|
|
|
250
|
|
|
||
|
3.50%
|
|
2020
|
|
250
|
|
|
250
|
|
|
||
|
7.04%
|
|
2020
|
|
9
|
|
|
9
|
|
|
||
|
1.90%
|
|
2021
|
|
300
|
|
|
300
|
|
|
||
|
2.38%
|
|
2023
|
|
500
|
|
|
500
|
|
|
||
|
3.25%
|
|
2023
|
|
325
|
|
|
—
|
|
|
||
|
3.75%
|
|
2024
|
|
250
|
|
|
250
|
|
|
||
|
3.15%
|
|
2024
|
|
250
|
|
|
250
|
|
|
||
|
3.05%
|
|
2024
|
|
250
|
|
|
250
|
|
|
||
|
3.00%
|
|
2025
|
|
350
|
|
|
350
|
|
|
||
|
2.25%
|
|
2026
|
|
425
|
|
|
425
|
|
|
||
|
3.00%
|
|
2027
|
|
425
|
|
|
425
|
|
|
||
|
3.70%
|
|
2028
|
|
375
|
|
|
—
|
|
|
||
|
3.65%
|
|
2028
|
|
325
|
|
|
—
|
|
|
||
|
5.25%
|
|
2035
|
|
250
|
|
|
250
|
|
|
||
|
5.70%
|
|
2036
|
|
250
|
|
|
250
|
|
|
||
|
5.80%
|
|
2037
|
|
350
|
|
|
350
|
|
|
||
|
5.38%
|
|
2039
|
|
250
|
|
|
250
|
|
|
||
|
5.50%
|
|
2040
|
|
300
|
|
|
300
|
|
|
||
|
3.95%
|
|
2042
|
|
450
|
|
|
450
|
|
|
||
|
3.65%
|
|
2042
|
|
350
|
|
|
350
|
|
|
||
|
3.80%
|
|
2043
|
|
400
|
|
|
400
|
|
|
||
|
4.00%
|
|
2044
|
|
250
|
|
|
250
|
|
|
||
|
4.05%
|
|
2045
|
|
250
|
|
|
250
|
|
|
||
|
4.15%
|
|
2045
|
|
250
|
|
|
250
|
|
|
||
|
3.80%
|
|
2046
|
|
550
|
|
|
550
|
|
|
||
|
3.60%
|
|
2047
|
|
350
|
|
|
350
|
|
|
||
|
4.05%
|
|
2048
|
|
325
|
|
|
—
|
|
|
||
|
Total MTNs
|
|
|
|
9,109
|
|
|
8,509
|
|
|
||
|
Principal Amount Outstanding
|
|
|
|
9,258
|
|
|
8,658
|
|
|
||
|
Amounts Due Within One Year
|
|
|
|
(500
|
)
|
|
(750
|
)
|
|
||
|
Net Unamortized Discount and Debt Issuance Costs
|
|
|
|
(74
|
)
|
|
(67
|
)
|
|
||
|
Total Long-Term Debt of PSE&G
|
|
|
|
$
|
8,684
|
|
|
$
|
7,841
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
As of December 31,
|
|
||||||
|
|
|
Maturity
|
|
2018
|
|
2017
|
|
||||
|
|
|
|
|
Millions
|
|
||||||
|
Power
|
|
|
|
|
|
|
|
||||
|
Senior Notes:
|
|
|
|
|
|
|
|
||||
|
2.45%
|
|
2018
|
|
$
|
—
|
|
|
$
|
250
|
|
|
|
5.13%
|
|
2020
|
|
406
|
|
|
406
|
|
|
||
|
3.00%
|
|
2021
|
|
700
|
|
|
700
|
|
|
||
|
4.15%
|
|
2021
|
|
250
|
|
|
250
|
|
|
||
|
3.85%
|
|
2023
|
|
700
|
|
|
—
|
|
|
||
|
4.30%
|
|
2023
|
|
250
|
|
|
250
|
|
|
||
|
8.63%
|
|
2031
|
|
500
|
|
|
500
|
|
|
||
|
Total Senior Notes
|
|
|
|
2,806
|
|
|
2,356
|
|
|
||
|
Pollution Control Notes:
|
|
|
|
|
|
|
|
||||
|
Floating Rate (B)
|
|
2019
|
|
44
|
|
|
44
|
|
|
||
|
Total Pollution Control Notes
|
|
|
|
44
|
|
|
44
|
|
|
||
|
Principal Amount Outstanding
|
|
|
|
2,850
|
|
|
2,400
|
|
|
||
|
Amounts Due Within One Year
|
|
|
|
(44
|
)
|
|
(250
|
)
|
|
||
|
Net Unamortized Discount and Debt Issuance Costs
|
|
|
|
(15
|
)
|
|
(14
|
)
|
|
||
|
Total Long-Term Debt of Power
|
|
|
|
$
|
2,791
|
|
|
$
|
2,136
|
|
|
|
|
|
|
|
|
|
|
|
(A)
|
Secured by essentially all property of PSE&G pursuant to its First and Refunding Mortgage.
|
(B)
|
The Pennsylvania Economic Development Authority (PEDFA) bond that is serviced and secured by Power Pollution Control Notes is a variable rate bond that is in weekly reset mode.
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Year
|
|
PSEG
|
|
PSE&G
|
|
Power
|
|
Total
|
|
||||||||
|
|
|
|
|
||||||||||||||
|
2019
|
|
$
|
750
|
|
|
$
|
500
|
|
|
$
|
44
|
|
|
$
|
1,294
|
|
|
|
2020
|
|
700
|
|
|
259
|
|
|
406
|
|
|
1,365
|
|
|
||||
|
2021
|
|
300
|
|
|
434
|
|
|
950
|
|
|
1,684
|
|
|
||||
|
2022
|
|
700
|
|
|
—
|
|
|
—
|
|
|
700
|
|
|
||||
|
2023
|
|
—
|
|
|
825
|
|
|
950
|
|
|
1,775
|
|
|
||||
|
Thereafter
|
|
—
|
|
|
7,240
|
|
|
500
|
|
|
7,740
|
|
|
||||
|
Total
|
|
$
|
2,450
|
|
|
$
|
9,258
|
|
|
$
|
2,850
|
|
|
$
|
14,558
|
|
|
|
|
|
|
|
|
|
|
|
|
|
•
|
entered into an agreement for a new term loan maturing
November 2020
. The term loan has a balance of
$700 million
at an interest rate of
1 month LIBOR + 0.60%
and can be terminated at any time without penalty, and
|
•
|
redeemed
$350 million
of a
$700 million
term loan at an interest rate of
1 month LIBOR + 0.80%
maturing
June 2019
.
|
•
|
issued
$375 million
of
3.70%
Secured Medium-Term Notes, Series M, due
May 2028
,
|
•
|
issued
$325 million
of
4.05%
Secured Medium-Term Notes, Series M, due
May 2048
,
|
•
|
issued
$325 million
of
3.25%
Secured Medium-Term Notes, Series M, due
September 2023
,
|
•
|
issued
$325 million
of
3.65%
Secured Medium-Term Notes, Series M, due
September 2028
,
|
•
|
retired
$400 million
of
5.30%
Medium-Term Notes at maturity, and
|
•
|
retired
$350 million
of
2.30%
Medium-Term Notes at maturity.
|
•
|
issued
$700 million
of
3.85%
Senior Notes due
June 2023
, and
|
•
|
retired
$250 million
of
2.45%
Senior Notes at maturity.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
As of December 31, 2018
|
|
|
|
||||||||||||
|
Company/Facility
|
|
Total
Facility
|
|
Usage
|
|
Available
Liquidity
|
|
Expiration
Date
|
|
Primary Purpose
|
|
||||||
|
|
|
Millions
|
|
|
|
|
|
||||||||||
|
PSEG
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
5-year Credit Facilities (A)
|
|
$
|
1,500
|
|
|
$
|
759
|
|
|
$
|
741
|
|
|
Mar 2022
|
|
Commercial Paper Support/Funding/Letters of Credit
|
|
|
Total PSEG
|
|
$
|
1,500
|
|
|
$
|
759
|
|
|
$
|
741
|
|
|
|
|
|
|
|
PSE&G
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
5-year Credit Facility (A)
|
|
$
|
600
|
|
|
$
|
288
|
|
|
$
|
312
|
|
|
Mar 2022
|
|
Commercial Paper Support/Funding/Letters of Credit
|
|
|
Total PSE&G
|
|
$
|
600
|
|
|
$
|
288
|
|
|
$
|
312
|
|
|
|
|
|
|
|
Power
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
3-year Letter of Credit Facilities
|
|
$
|
200
|
|
|
$
|
114
|
|
|
$
|
86
|
|
|
Sept 2021
|
|
Letters of Credit
|
|
|
5-year Credit Facilities
|
|
1,900
|
|
|
40
|
|
|
1,860
|
|
|
Mar 2022
|
|
Funding/Letters of Credit
|
|
|||
|
Total Power
|
|
$
|
2,100
|
|
|
$
|
154
|
|
|
$
|
1,946
|
|
|
|
|
|
|
|
Total
|
|
$
|
4,200
|
|
|
$
|
1,201
|
|
|
$
|
2,999
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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
December 31, 2018
, PSEG had
$744 million
outstanding at a weighted average interest rate of
2.95%
. PSE&G had
$272 million
outstanding at a weighted average interest rate of
2.96%
under its Commercial Paper Program as of
December 31, 2018
.
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
December 31, 2018
|
|
December 31, 2017
|
|
||||||||||||
|
|
|
Carrying
Amount
|
|
Fair
Value
|
|
Carrying
Amount
|
|
Fair
Value
|
|
||||||||
|
|
|
Millions
|
|
||||||||||||||
|
Long-Term Debt:
|
|
|
|
|
|
|
|
|
|
||||||||
|
PSEG (A) (B)
|
|
$
|
2,443
|
|
|
$
|
2,397
|
|
|
$
|
2,091
|
|
|
$
|
2,081
|
|
|
|
PSE&G (B)
|
|
9,184
|
|
|
9,374
|
|
|
8,591
|
|
|
9,322
|
|
|
||||
|
Power (B)
|
|
2,835
|
|
|
2,996
|
|
|
2,386
|
|
|
2,659
|
|
|
||||
|
Total Long-Term Debt
|
|
$
|
14,462
|
|
|
$
|
14,767
|
|
|
$
|
13,068
|
|
|
$
|
14,062
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(A)
|
As of December 31, 2018
and
2017
, fair value includes floating rate term loans of
$1,050 million
and
$700 million
, respectively. The fair value of the term loan debt (Level 2 measurement) approximates the carrying value because the interest payments are based on LIBOR rates that are reset monthly and the debt is redeemable at face value by PSEG at any time.
|
(B)
|
Given that these bonds do not trade actively, 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.
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
As of December 31,
|
|
||||||||||||
|
|
|
Outstanding Shares
|
|
Book Value
|
|
||||||||||
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
||||||
|
|
|
Millions
|
|
||||||||||||
|
PSEG Common Stock (no par value) (A)
|
|
|
|
|
|
|
|
|
|
||||||
|
Authorized 1,000 shares
|
|
504
|
|
|
505
|
|
|
$
|
4,172
|
|
|
$
|
4,198
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(A)
|
PSEG did not issue any new shares under the Dividend Reinvestment and Stock Purchase Plan (DRASPP) or the Employee Stock Purchase Plan (ESPP) in
2018
or
2017
.
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
As of December 31, 2018
|
|
|||||||||||||||
|
|
Power (A)
|
|
Consolidated
|
|
|||||||||||||
|
|
|
Not Designated
|
|
|
|
|
|
|
|
||||||||
|
Balance Sheet Location
|
|
Energy-
Related
Contracts
|
|
Netting
(B)
|
|
Total
Power
|
|
Total
Derivatives
|
|
||||||||
|
|
Millions
|
|
|||||||||||||||
|
Derivative Contracts
|
|
|
|
|
|
|
|
|
|
||||||||
|
Current Assets
|
|
$
|
426
|
|
|
$
|
(415
|
)
|
|
$
|
11
|
|
|
$
|
11
|
|
|
|
Noncurrent Assets
|
|
137
|
|
|
(136
|
)
|
|
1
|
|
|
1
|
|
|
||||
|
Total Mark-to-Market Derivative Assets
|
|
$
|
563
|
|
|
$
|
(551
|
)
|
|
$
|
12
|
|
|
$
|
12
|
|
|
|
Derivative Contracts
|
|
|
|
|
|
|
|
|
|
||||||||
|
Current Liabilities
|
|
$
|
(521
|
)
|
|
$
|
510
|
|
|
$
|
(11
|
)
|
|
$
|
(11
|
)
|
|
|
Noncurrent Liabilities
|
|
(198
|
)
|
|
194
|
|
|
(4
|
)
|
|
(4
|
)
|
|
||||
|
Total Mark-to-Market Derivative (Liabilities)
|
|
$
|
(719
|
)
|
|
$
|
704
|
|
|
$
|
(15
|
)
|
|
$
|
(15
|
)
|
|
|
Total Net Mark-to-Market Derivative Assets (Liabilities)
|
|
$
|
(156
|
)
|
|
$
|
153
|
|
|
$
|
(3
|
)
|
|
$
|
(3
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
As of December 31, 2017
|
|
|||||||||||||||
|
|
Power (A)
|
|
Consolidated
|
|
|||||||||||||
|
|
|
Not Designated
|
|
|
|
|
|
|
|
||||||||
|
Balance Sheet Location
|
|
Energy-
Related
Contracts
|
|
Netting
(B)
|
|
Total
Power
|
|
Total
Derivatives
|
|
||||||||
|
|
Millions
|
|
|||||||||||||||
|
Derivative Contracts
|
|
|
|
|
|
|
|
|
|
||||||||
|
Current Assets
|
|
$
|
391
|
|
|
$
|
(362
|
)
|
|
$
|
29
|
|
|
$
|
29
|
|
|
|
Noncurrent Assets
|
|
78
|
|
|
(71
|
)
|
|
7
|
|
|
7
|
|
|
||||
|
Total Mark-to-Market Derivative Assets
|
|
$
|
469
|
|
|
$
|
(433
|
)
|
|
$
|
36
|
|
|
$
|
36
|
|
|
|
Derivative Contracts
|
|
|
|
|
|
|
|
|
|
||||||||
|
Current Liabilities
|
|
$
|
(403
|
)
|
|
$
|
387
|
|
|
$
|
(16
|
)
|
|
$
|
(16
|
)
|
|
|
Noncurrent Liabilities
|
|
(95
|
)
|
|
90
|
|
|
(5
|
)
|
|
(5
|
)
|
|
||||
|
Total Mark-to-Market Derivative (Liabilities)
|
|
$
|
(498
|
)
|
|
$
|
477
|
|
|
$
|
(21
|
)
|
|
$
|
(21
|
)
|
|
|
Total Net Mark-to-Market Derivative Assets (Liabilities)
|
|
$
|
(29
|
)
|
|
$
|
44
|
|
|
$
|
15
|
|
|
$
|
15
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(A)
|
Substantially all of Power'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
December 31, 2018
and
2017
. 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 Consolidated Balance Sheets. As of
December 31, 2018
and
2017
, Power had net cash collateral/margin payments to counterparties of
$393 million
and
$146 million
, respectively. Of these net cash collateral/margin payments,
$153 million
as of
December 31, 2018
and
$44 million
as of
December 31, 2017
were netted against the corresponding net derivative contract positions. Of the
$153 million
as of
December 31, 2018
,
$(2) million
was netted against current assets,
$(3) million
was netted against noncurrent assets,
$96 million
was netted against current liabilities and
$62 million
was netted against noncurrent
|
|
|
|
|
|
|
|
||||
|
Accumulated Other Comprehensive Income (Loss)
|
|
Pre-Tax
|
|
After-Tax
|
|
||||
|
|
|
Millions
|
|
||||||
|
Balance as of December 31, 2016
|
|
$
|
3
|
|
|
$
|
2
|
|
|
|
Gain Recognized in AOCI
|
|
—
|
|
|
—
|
|
|
||
|
Less: Gain Reclassified into Income
|
|
(3
|
)
|
|
(2
|
)
|
|
||
|
Balance as of December 31, 2017
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
Loss Recognized in AOCI
|
|
(2
|
)
|
|
(1
|
)
|
|
||
|
Less: Loss Reclassified into Income
|
|
—
|
|
|
—
|
|
|
||
|
Balance as of December 31, 2018
|
|
$
|
(2
|
)
|
|
$
|
(1
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
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
|
|
||||||||||
|
|
|
|
|
Years Ended December 31,
|
|
||||||||||
|
|
|
|
|
2018
|
|
2017
|
|
2016
|
|
||||||
|
|
|
|
|
Millions
|
|
||||||||||
|
PSEG and Power
|
|
|
|
|
|
|
|
|
|
||||||
|
Energy-Related Contracts
|
|
Operating Revenues
|
|
$
|
(182
|
)
|
|
$
|
66
|
|
|
$
|
218
|
|
|
|
Energy-Related Contracts
|
|
Energy Costs
|
|
(9
|
)
|
|
(11
|
)
|
|
4
|
|
|
|||
|
Total PSEG and Power
|
|
|
|
$
|
(191
|
)
|
|
$
|
55
|
|
|
$
|
222
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Type
|
|
Notional
|
|
Total
|
|
PSEG
|
|
Power
|
|
PSE&G
|
|
||||
|
|
|
Millions
|
|
||||||||||||
|
As of December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Natural Gas
|
|
Dth
|
|
358
|
|
|
—
|
|
|
358
|
|
|
—
|
|
|
|
Electricity
|
|
MWh
|
|
(74
|
)
|
|
—
|
|
|
(74
|
)
|
|
—
|
|
|
|
Financial Transmission Rights (FTRs)
|
|
MWh
|
|
18
|
|
|
—
|
|
|
18
|
|
|
—
|
|
|
|
As of December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Natural Gas
|
|
Dth
|
|
154
|
|
|
—
|
|
|
154
|
|
|
—
|
|
|
|
Electricity
|
|
MWh
|
|
(63
|
)
|
|
—
|
|
|
(63
|
)
|
|
—
|
|
|
|
FTRs
|
|
MWh
|
|
6
|
|
|
—
|
|
|
6
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Rating
|
|
Current
Exposure
|
|
Securities
held as
Collateral
|
|
Net
Exposure
|
|
Number of
Counterparties
>10%
|
|
Net Exposure of
Counterparties
>10%
|
|
|
|||||||||
|
|
|
Millions
|
|
|
|
Millions
|
|
|
|||||||||||||
|
Investment Grade
|
|
$
|
264
|
|
|
$
|
12
|
|
|
$
|
252
|
|
|
1
|
|
|
$
|
179
|
|
(A)
|
|
|
Non-Investment Grade
|
|
1
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
|
||||
|
Total
|
|
$
|
265
|
|
|
$
|
12
|
|
|
$
|
253
|
|
|
1
|
|
|
$
|
179
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(A)
|
Represents net exposure with PSE&G.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
Recurring Fair Value Measurements as of December 31, 2018
|
|
||||||||||||||||||
|
Description
|
|
Total
|
|
Netting (D)
|
|
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)
|
|
$
|
100
|
|
|
$
|
—
|
|
|
$
|
100
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
Derivative Contracts:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Energy-Related Contracts (B)
|
|
$
|
12
|
|
|
$
|
(551
|
)
|
|
$
|
29
|
|
|
$
|
527
|
|
|
$
|
7
|
|
|
|
NDT Fund (C)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Equity Securities
|
|
$
|
900
|
|
|
$
|
—
|
|
|
$
|
898
|
|
|
$
|
2
|
|
|
$
|
—
|
|
|
|
Debt Securities—U.S. Treasury
|
|
$
|
171
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
171
|
|
|
$
|
—
|
|
|
|
Debt Securities—Govt Other
|
|
$
|
320
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
320
|
|
|
$
|
—
|
|
|
|
Debt Securities—Corporate
|
|
$
|
487
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
487
|
|
|
$
|
—
|
|
|
|
Rabbi Trust (C)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Equity Securities
|
|
$
|
23
|
|
|
$
|
—
|
|
|
$
|
23
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
Debt Securities—U.S. Treasury
|
|
$
|
69
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
69
|
|
|
$
|
—
|
|
|
|
Debt Securities—Govt Other
|
|
$
|
40
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
40
|
|
|
$
|
—
|
|
|
|
Debt Securities—Corporate
|
|
$
|
92
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
92
|
|
|
$
|
—
|
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Derivative Contracts:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Energy-Related Contracts (B)
|
|
$
|
(15
|
)
|
|
$
|
704
|
|
|
$
|
(36
|
)
|
|
$
|
(677
|
)
|
|
$
|
(6
|
)
|
|
|
PSE&G
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Rabbi Trust (C)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Equity Securities
|
|
$
|
5
|
|
|
$
|
—
|
|
|
$
|
5
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
Debt Securities—U.S. Treasury
|
|
$
|
14
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
14
|
|
|
$
|
—
|
|
|
|
Debt Securities—Govt Other
|
|
$
|
8
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
8
|
|
|
$
|
—
|
|
|
|
Debt Securities—Corporate
|
|
$
|
18
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
18
|
|
|
$
|
—
|
|
|
|
Power
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Derivative Contracts:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Energy-Related Contracts (B)
|
|
$
|
12
|
|
|
$
|
(551
|
)
|
|
$
|
29
|
|
|
$
|
527
|
|
|
$
|
7
|
|
|
|
NDT Fund (C)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Equity Securities
|
|
$
|
900
|
|
|
$
|
—
|
|
|
$
|
898
|
|
|
$
|
2
|
|
|
$
|
—
|
|
|
|
Debt Securities—U.S. Treasury
|
|
$
|
171
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
171
|
|
|
$
|
—
|
|
|
|
Debt Securities—Govt Other
|
|
$
|
320
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
320
|
|
|
$
|
—
|
|
|
|
Debt Securities—Corporate
|
|
$
|
487
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
487
|
|
|
$
|
—
|
|
|
|
Rabbi Trust (C)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Equity Securities
|
|
$
|
6
|
|
|
$
|
—
|
|
|
$
|
6
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
Debt Securities—U.S. Treasury
|
|
$
|
17
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
17
|
|
|
$
|
—
|
|
|
|
Debt Securities—Govt Other
|
|
$
|
10
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
10
|
|
|
$
|
—
|
|
|
|
Debt Securities—Corporate
|
|
$
|
23
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
23
|
|
|
$
|
—
|
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Derivative Contracts:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Energy-Related Contracts (B)
|
|
$
|
(15
|
)
|
|
$
|
704
|
|
|
$
|
(36
|
)
|
|
$
|
(677
|
)
|
|
$
|
(6
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
Recurring Fair Value Measurements as of December 31, 2017
|
|
||||||||||||||||||
|
Description
|
|
Total
|
|
Netting (D)
|
|
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)
|
|
$
|
223
|
|
|
$
|
—
|
|
|
$
|
223
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
Derivative Contracts:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Energy-Related Contracts (B)
|
|
$
|
36
|
|
|
$
|
(433
|
)
|
|
$
|
15
|
|
|
$
|
442
|
|
|
$
|
12
|
|
|
|
NDT Fund (C)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Equity Securities
|
|
$
|
1,147
|
|
|
$
|
—
|
|
|
$
|
1,145
|
|
|
$
|
2
|
|
|
$
|
—
|
|
|
|
Debt Securities—U.S. Treasury
|
|
$
|
314
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
314
|
|
|
$
|
—
|
|
|
|
Debt Securities—Govt Other
|
|
$
|
270
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
270
|
|
|
$
|
—
|
|
|
|
Debt Securities—Corporate
|
|
$
|
402
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
402
|
|
|
$
|
—
|
|
|
|
Rabbi Trust (C)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Equity Securities
|
|
$
|
27
|
|
|
$
|
—
|
|
|
$
|
27
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
Debt Securities—U.S. Treasury
|
|
$
|
51
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
51
|
|
|
$
|
—
|
|
|
|
Debt Securities—Govt Other
|
|
$
|
34
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
34
|
|
|
$
|
—
|
|
|
|
Debt Securities—Corporate
|
|
$
|
119
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
119
|
|
|
$
|
—
|
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Derivative Contracts:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Energy-Related Contracts (B)
|
|
$
|
(21
|
)
|
|
$
|
477
|
|
|
$
|
(8
|
)
|
|
$
|
(485
|
)
|
|
$
|
(5
|
)
|
|
|
PSE&G
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Cash Equivalents (A)
|
|
$
|
223
|
|
|
$
|
—
|
|
|
$
|
223
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
Rabbi Trust (C)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Equity Securities
|
|
$
|
5
|
|
|
$
|
—
|
|
|
$
|
5
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
Debt Securities—U.S. Treasury
|
|
$
|
10
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
10
|
|
|
$
|
—
|
|
|
|
Debt Securities—Govt Other
|
|
$
|
7
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
7
|
|
|
$
|
—
|
|
|
|
Debt Securities—Corporate
|
|
$
|
24
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
24
|
|
|
$
|
—
|
|
|
|
Power
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Derivative Contracts:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Energy-Related Contracts (B)
|
|
$
|
36
|
|
|
$
|
(433
|
)
|
|
$
|
15
|
|
|
$
|
442
|
|
|
$
|
12
|
|
|
|
NDT Fund (C)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Equity Securities
|
|
$
|
1,147
|
|
|
$
|
—
|
|
|
$
|
1,145
|
|
|
$
|
2
|
|
|
$
|
—
|
|
|
|
Debt Securities—U.S. Treasury
|
|
$
|
314
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
314
|
|
|
$
|
—
|
|
|
|
Debt Securities—Govt Other
|
|
$
|
270
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
270
|
|
|
$
|
—
|
|
|
|
Debt Securities—Corporate
|
|
$
|
402
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
402
|
|
|
$
|
—
|
|
|
|
Rabbi Trust (C)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Equity Securities
|
|
$
|
6
|
|
|
$
|
—
|
|
|
$
|
6
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
Debt Securities—U.S. Treasury
|
|
$
|
13
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
13
|
|
|
$
|
—
|
|
|
|
Debt Securities—Govt Other
|
|
$
|
8
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
8
|
|
|
$
|
—
|
|
|
|
Debt Securities—Corporate
|
|
$
|
30
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
30
|
|
|
$
|
—
|
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Derivative Contracts:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Energy-Related Contracts (B)
|
|
$
|
(21
|
)
|
|
$
|
477
|
|
|
$
|
(8
|
)
|
|
$
|
(485
|
)
|
|
$
|
(5
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(A)
|
Represents money market mutual funds.
|
(B)
|
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)
|
The NDT Fund maintains investments in various equity and fixed income securities. The Rabbi Trust maintains investments in a Russell 3000 index fund and various fixed income securities. 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).
|
(D)
|
Represents the netting of fair value balances with the same counterparty (where the right of offset exists) and the application of collateral. See
Note 17. Financial Risk Management Activities
for additional detail.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
Quantitative Information About Level 3 Fair Value Measurements
|
|
|
|
||||||||||||
|
Commodity
|
|
Level 3 Position
|
|
Fair Value as of December 31, 2017
|
|
Valuation
Technique(s)
|
|
Significant
Unobservable Input
|
|
Range
|
|
||||||
|
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
Assets
|
|
(Liabilities)
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
Millions
|
|
|
|
|
|
|
|
||||||
|
Power
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Electricity
|
|
Electric Load Contracts
|
|
$
|
1
|
|
|
$
|
(3
|
)
|
|
Discounted Cash flow
|
|
Historic Load Variability
|
|
0% to 10%
|
|
|
Gas
|
|
Gas Physical Contracts
|
|
11
|
|
|
(2
|
)
|
|
Discounted Cash flow
|
|
Average Historical Basis
|
|
-40% to -10%
|
|
||
|
Total Power
|
|
|
|
$
|
12
|
|
|
$
|
(5
|
)
|
|
|
|
|
|
|
|
|
Total PSEG
|
|
|
|
$
|
12
|
|
|
$
|
(5
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
|
|
|
|
Total Gains or (Losses)
Realized/Unrealized
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Description
|
|
Balance as of January 1, 2018
|
|
Included in Income (A)
|
|
Included in
Regulatory Assets/
Liabilities (B)
|
|
Purchases,
(Sales)
|
|
Issuances/
Settlements
(C)
|
|
Transfers
In/Out
|
|
Balance as of December 31, 2018
|
|
||||||||||||||
|
|
|
Millions
|
|
||||||||||||||||||||||||||
|
PSEG
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Net Derivative Assets (Liabilities)
|
|
$
|
7
|
|
|
$
|
(6
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1
|
|
|
|
Power
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Net Derivative Assets (Liabilities)
|
|
$
|
7
|
|
|
$
|
(6
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
|
|
|
|
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 December 31, 2017
|
|
||||||||||||||
|
|
|
Millions
|
|
||||||||||||||||||||||||||
|
PSEG
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Net Derivative Assets (Liabilities)
|
|
$
|
1
|
|
|
$
|
26
|
|
|
$
|
5
|
|
|
$
|
—
|
|
|
$
|
(24
|
)
|
|
$
|
(1
|
)
|
|
$
|
7
|
|
|
|
PSE&G
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Net Derivative Assets (Liabilities)
|
|
$
|
(5
|
)
|
|
$
|
—
|
|
|
$
|
5
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
Power
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Net Derivative Assets (Liabilities)
|
|
$
|
6
|
|
|
$
|
26
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(24
|
)
|
|
$
|
(1
|
)
|
|
$
|
7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
Years Ended December 31,
|
|
||||||||||||||
|
|
|
2018
|
|
2017
|
|
||||||||||||
|
|
|
Total Gains (Losses)
|
|
Unrealized Gains (Losses)
|
|
Total Gains (Losses)
|
|
Unrealized Gains (Losses)
|
|
||||||||
|
|
|
Millions
|
|
||||||||||||||
|
PSEG and Power
|
|
|
|
|
|
|
|
|
|
||||||||
|
Operating Revenues
|
|
$
|
(2
|
)
|
|
$
|
—
|
|
|
$
|
14
|
|
|
$
|
(9
|
)
|
|
|
Energy Costs
|
|
(4
|
)
|
|
(6
|
)
|
|
12
|
|
|
12
|
|
|
||||
|
Total
|
|
$
|
(6
|
)
|
|
$
|
(6
|
)
|
|
$
|
26
|
|
|
$
|
3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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
$(24) million
in settlements for derivative contracts in
2017
.
|
(D)
|
During the year ended
December 31, 2017
,
$(1) million
of net derivatives assets/liabilities were transferred from Level 2 to Level 3. There were no transfers in 2018.
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
2018
|
|
2017
|
|
2016
|
|
||||||
|
|
|
Millions
|
|
||||||||||
|
Compensation Cost included in Operation and Maintenance Expense
|
|
$
|
30
|
|
|
$
|
31
|
|
|
$
|
29
|
|
|
|
Income Tax Benefit Recognized in Consolidated Statement of Operations
|
|
$
|
9
|
|
|
$
|
13
|
|
|
$
|
12
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
Options
|
|
Weighted Average Exercise Price
|
|
Weighted Average Remaining Years Contractual Term
|
|
Aggregate Intrinsic Value
|
|
|||||
|
Outstanding as of January 1, 2018
|
|
347,900
|
|
|
$
|
33.49
|
|
|
|
|
|
|
||
|
Exercised
|
|
115,967
|
|
|
$
|
33.49
|
|
|
|
|
|
|
||
|
Canceled/Forfeited
|
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
||
|
Outstanding as of December 31, 2018
|
|
231,933
|
|
|
$
|
33.49
|
|
|
1.0
|
|
$
|
4,304,676
|
|
|
|
Exercisable at December 31, 2018
|
|
231,933
|
|
|
$
|
33.49
|
|
|
1.0
|
|
$
|
4,304,676
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
2018
|
|
2017
|
|
2016
|
|
||||||
|
|
|
Millions
|
|
||||||||||
|
Total Intrinsic Value of Options Exercised
|
|
$
|
2
|
|
|
$
|
5
|
|
|
$
|
7
|
|
|
|
Cash Received from Options Exercised
|
|
$
|
4
|
|
|
$
|
26
|
|
|
$
|
22
|
|
|
|
Tax Benefit Realized from Options Exercised
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
Shares
|
|
Weighted
Average Grant
Date Fair Value
|
|
Weighted Average
Remaining Years
Contractual Term
|
|
Aggregate
Intrinsic Value
|
|
|||||
|
Non-vested as of January 1, 2018
|
|
213,899
|
|
|
$
|
42.32
|
|
|
|
|
|
|
||
|
Granted
|
|
277,261
|
|
|
$
|
49.34
|
|
|
|
|
|
|
||
|
Vested
|
|
220,105
|
|
|
$
|
46.02
|
|
|
|
|
|
|
||
|
Canceled/Forfeited
|
|
13,472
|
|
|
$
|
44.94
|
|
|
|
|
|
|
||
|
Non-vested as of December 31, 2018
|
|
257,583
|
|
|
$
|
46.58
|
|
|
1.2
|
|
$
|
13,407,195
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
Shares
|
|
Weighted
Average
Grant Date
Fair Value
|
|
Weighted Average
Remaining Years
Contractual Term
|
|
Aggregate
Intrinsic Value
|
|
|||||
|
Non-vested as of January 1, 2018
|
|
332,461
|
|
|
$
|
45.29
|
|
|
|
|
|
|
||
|
Granted
|
|
378,800
|
|
|
$
|
54.95
|
|
|
|
|
|
|
||
|
Vested
|
|
310,425
|
|
|
$
|
49.63
|
|
|
|
|
|
|
||
|
Canceled/Forfeited
|
|
23,295
|
|
|
$
|
48.57
|
|
|
|
|
|
|
||
|
Non-vested as of December 31, 2018
|
|
377,541
|
|
|
$
|
51.94
|
|
|
1.7
|
|
$
|
19,651,009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
PSE&G
|
|
Power
|
|
Other (A)
|
|
Consolidated
Total
|
|
||||||||
|
|
|
Millions
|
|
||||||||||||||
|
Year Ended December 31, 2018
|
|
|
|
|
|
|
|
|
|
||||||||
|
NDT Fund Interest and Dividends
|
|
$
|
—
|
|
|
$
|
52
|
|
|
$
|
—
|
|
|
$
|
52
|
|
|
|
Allowance for Funds Used During Construction
|
|
54
|
|
|
—
|
|
|
—
|
|
|
54
|
|
|
||||
|
Solar Loan Interest
|
|
18
|
|
|
—
|
|
|
—
|
|
|
18
|
|
|
||||
|
Donations
|
|
—
|
|
|
—
|
|
|
(17
|
)
|
|
(17
|
)
|
|
||||
|
Other
|
|
8
|
|
|
(31
|
)
|
|
1
|
|
|
(22
|
)
|
|
||||
|
Total Other Income (Deductions)
|
|
$
|
80
|
|
|
$
|
21
|
|
|
$
|
(16
|
)
|
|
$
|
85
|
|
|
|
Year Ended December 31, 2017
|
|
|
|
|
|
|
|
|
|
||||||||
|
NDT Fund Interest and Dividends
|
|
$
|
—
|
|
|
$
|
45
|
|
|
$
|
—
|
|
|
$
|
45
|
|
|
|
Allowance for Funds Used During Construction
|
|
56
|
|
|
—
|
|
|
—
|
|
|
56
|
|
|
||||
|
Solar Loan Interest
|
|
21
|
|
|
—
|
|
|
—
|
|
|
21
|
|
|
||||
|
Donations
|
|
(1
|
)
|
|
(2
|
)
|
|
(25
|
)
|
|
(28
|
)
|
|
||||
|
Other
|
|
9
|
|
|
(23
|
)
|
|
2
|
|
|
(12
|
)
|
|
||||
|
Total Other Income (Deductions)
|
|
$
|
85
|
|
|
$
|
20
|
|
|
$
|
(23
|
)
|
|
$
|
82
|
|
|
|
Year Ended December 31, 2016
|
|
|
|
|
|
|
|
|
|
||||||||
|
NDT Fund Interest and Dividends
|
|
$
|
—
|
|
|
$
|
43
|
|
|
$
|
—
|
|
|
$
|
43
|
|
|
|
Allowance for Funds Used During Construction
|
|
49
|
|
|
—
|
|
|
—
|
|
|
49
|
|
|
||||
|
Solar Loan Interest
|
|
22
|
|
|
—
|
|
|
—
|
|
|
22
|
|
|
||||
|
Donations
|
|
(1
|
)
|
|
(1
|
)
|
|
—
|
|
|
(2
|
)
|
|
||||
|
Other
|
|
9
|
|
|
(19
|
)
|
|
—
|
|
|
(10
|
)
|
|
||||
|
Total Other Income (Deductions)
|
|
$
|
79
|
|
|
$
|
23
|
|
|
$
|
—
|
|
|
$
|
102
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(A)
|
Other consists of activity at PSEG (as parent company), Energy Holdings, Services, PSEG LI and intercompany eliminations.
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
Years Ended December 31,
|
|
||||||||||
|
PSEG
|
|
2018
|
|
2017
|
|
2016
|
|
||||||
|
|
|
Millions
|
|
||||||||||
|
Net Income
|
|
$
|
1,438
|
|
|
$
|
1,574
|
|
|
$
|
887
|
|
|
|
Income Taxes:
|
|
|
|
|
|
|
|
||||||
|
Operating Income:
|
|
|
|
|
|
|
|
||||||
|
Current (Benefit) Expense:
|
|
|
|
|
|
|
|
||||||
|
Federal
|
|
$
|
(97
|
)
|
|
$
|
86
|
|
|
$
|
(74
|
)
|
|
|
State
|
|
83
|
|
|
(31
|
)
|
|
61
|
|
|
|||
|
Total Current
|
|
(14
|
)
|
|
55
|
|
|
(13
|
)
|
|
|||
|
Deferred Expense (Benefit):
|
|
|
|
|
|
|
|
||||||
|
Federal
|
|
373
|
|
|
(482
|
)
|
|
311
|
|
|
|||
|
State
|
|
71
|
|
|
92
|
|
|
28
|
|
|
|||
|
Total Deferred
|
|
444
|
|
|
(390
|
)
|
|
339
|
|
|
|||
|
Investment Tax Credit (ITC)
|
|
(13
|
)
|
|
29
|
|
|
85
|
|
|
|||
|
Total Income Tax Expense (Benefit)
|
|
$
|
417
|
|
|
$
|
(306
|
)
|
|
$
|
411
|
|
|
|
Pre-Tax Income
|
|
$
|
1,855
|
|
|
$
|
1,268
|
|
|
$
|
1,298
|
|
|
|
Tax Computed at Statutory Rate @ 21% in 2018 and 35% in 2017 and 2016
|
|
$
|
390
|
|
|
$
|
444
|
|
|
$
|
454
|
|
|
|
Increase (Decrease) Attributable to Flow-Through of Certain Tax Adjustments:
|
|
|
|
|
|
|
|
||||||
|
State Income Taxes (net of federal income tax)
|
|
123
|
|
|
36
|
|
|
56
|
|
|
|||
|
Uncertain Tax Positions
|
|
(24
|
)
|
|
(3
|
)
|
|
(31
|
)
|
|
|||
|
Manufacturing Deduction
|
|
—
|
|
|
(13
|
)
|
|
(17
|
)
|
|
|||
|
NDT Fund
|
|
(13
|
)
|
|
19
|
|
|
3
|
|
|
|||
|
Plant-Related Items
|
|
(10
|
)
|
|
(23
|
)
|
|
(20
|
)
|
|
|||
|
Tax Credits
|
|
(16
|
)
|
|
(22
|
)
|
|
(25
|
)
|
|
|||
|
Audit Settlement
|
|
—
|
|
|
6
|
|
|
—
|
|
|
|||
|
Tax Adjustment Credit
|
|
(30
|
)
|
|
—
|
|
|
—
|
|
|
|||
|
Deferred Tax Expense (Benefit) - Tax Act
|
|
3
|
|
|
(755
|
)
|
|
—
|
|
|
|||
|
Other
|
|
(6
|
)
|
|
5
|
|
|
(9
|
)
|
|
|||
|
Sub-Total
|
|
27
|
|
|
(750
|
)
|
|
(43
|
)
|
|
|||
|
Total Income Tax Expense (Benefit)
|
|
$
|
417
|
|
|
$
|
(306
|
)
|
|
$
|
411
|
|
|
|
Effective Income Tax Rate
|
|
22.5
|
%
|
|
(24.1
|
)%
|
|
31.7
|
%
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
As of December 31,
|
|
||||||
|
PSEG
|
|
2018
|
|
2017
|
|
||||
|
|
|
Millions
|
|
||||||
|
Deferred Income Taxes
|
|
|
|
|
|
||||
|
Assets:
|
|
|
|
|
|
||||
|
Noncurrent
|
|
|
|
|
|
||||
|
Regulatory Liability Excess Deferred Tax
|
|
$
|
606
|
|
|
$
|
602
|
|
|
|
OPEB
|
|
163
|
|
|
217
|
|
|
||
|
Related to Uncertain Tax Position
|
|
71
|
|
|
142
|
|
|
||
|
Total Noncurrent Assets
|
|
$
|
840
|
|
|
$
|
961
|
|
|
|
|
|
|
|
|
|
||||
|
Liabilities:
|
|
|
|
|
|
||||
|
Noncurrent:
|
|
|
|
|
|
||||
|
Plant-Related Items
|
|
$
|
4,817
|
|
|
$
|
4,257
|
|
|
|
New Jersey Corporate Business Tax
|
|
756
|
|
|
674
|
|
|
||
|
Leasing Activities
|
|
307
|
|
|
384
|
|
|
||
|
AROs and NDT Fund
|
|
196
|
|
|
233
|
|
|
||
|
Pension Costs
|
|
111
|
|
|
123
|
|
|
||
|
Taxes Recoverable Through Future Rates (net)
|
|
89
|
|
|
80
|
|
|
||
|
Other
|
|
12
|
|
|
171
|
|
|
||
|
Total Noncurrent Liabilities
|
|
$
|
6,288
|
|
|
$
|
5,922
|
|
|
|
Summary of Accumulated Deferred Income Taxes:
|
|
|
|
|
|
||||
|
Net Noncurrent Deferred Income Tax Liabilities
|
|
$
|
5,448
|
|
|
$
|
4,961
|
|
|
|
ITC
|
|
265
|
|
|
279
|
|
|
||
|
Net Total Noncurrent Deferred Income Taxes and ITC
|
|
$
|
5,713
|
|
|
$
|
5,240
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
Years Ended December 31,
|
|
||||||||||
|
PSE&G
|
|
2018
|
|
2017
|
|
2016
|
|
||||||
|
|
|
Millions
|
|
||||||||||
|
Net Income
|
|
$
|
1,067
|
|
|
$
|
973
|
|
|
$
|
889
|
|
|
|
Income Taxes:
|
|
|
|
|
|
|
|
||||||
|
Operating Income:
|
|
|
|
|
|
|
|
||||||
|
Current (Benefit) Expense:
|
|
|
|
|
|
|
|
||||||
|
Federal
|
|
$
|
(62
|
)
|
|
$
|
(52
|
)
|
|
$
|
(153
|
)
|
|
|
State
|
|
1
|
|
|
(1
|
)
|
|
10
|
|
|
|||
|
Total Current
|
|
(61
|
)
|
|
(53
|
)
|
|
(143
|
)
|
|
|||
|
Deferred Expense:
|
|
|
|
|
|
|
|
||||||
|
Federal
|
|
287
|
|
|
492
|
|
|
551
|
|
|
|||
|
State
|
|
122
|
|
|
129
|
|
|
102
|
|
|
|||
|
Total Deferred
|
|
409
|
|
|
621
|
|
|
653
|
|
|
|||
|
ITC
|
|
(4
|
)
|
|
(5
|
)
|
|
5
|
|
|
|||
|
Total Income Tax Expense
|
|
$
|
344
|
|
|
$
|
563
|
|
|
$
|
515
|
|
|
|
Pre-Tax Income
|
|
$
|
1,411
|
|
|
$
|
1,536
|
|
|
$
|
1,404
|
|
|
|
Tax Computed at Statutory Rate @ 21% in 2018 and 35% in 2017 and 2016
|
|
$
|
296
|
|
|
$
|
538
|
|
|
$
|
491
|
|
|
|
Increase (Decrease) Attributable to Flow-Through of Certain Tax Adjustments:
|
|
|
|
|
|
|
|
||||||
|
State Income Taxes (net of federal income tax)
|
|
98
|
|
|
83
|
|
|
72
|
|
|
|||
|
Uncertain Tax Positions
|
|
(1
|
)
|
|
(9
|
)
|
|
(18
|
)
|
|
|||
|
Plant-Related Items
|
|
(10
|
)
|
|
(23
|
)
|
|
(20
|
)
|
|
|||
|
Tax Credits
|
|
(8
|
)
|
|
(9
|
)
|
|
(7
|
)
|
|
|||
|
Tax Adjustment Credit
|
|
(30
|
)
|
|
—
|
|
|
—
|
|
|
|||
|
Deferred Tax Benefit - Tax Act
|
|
—
|
|
|
(10
|
)
|
|
—
|
|
|
|||
|
Other
|
|
(1
|
)
|
|
(7
|
)
|
|
(3
|
)
|
|
|||
|
Sub-Total
|
|
48
|
|
|
25
|
|
|
24
|
|
|
|||
|
Total Income Tax Expense
|
|
$
|
344
|
|
|
$
|
563
|
|
|
$
|
515
|
|
|
|
Effective Income Tax Rate
|
|
24.4
|
%
|
|
36.7
|
%
|
|
36.7
|
%
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
As of December 31,
|
|
||||||
|
PSE&G
|
|
2018
|
|
2017
|
|
||||
|
|
|
Millions
|
|
||||||
|
Deferred Income Taxes
|
|
|
|
|
|
||||
|
Assets:
|
|
|
|
|
|
||||
|
Noncurrent:
|
|
|
|
|
|
||||
|
Regulatory Liability Excess Deferred Tax
|
|
$
|
606
|
|
|
$
|
602
|
|
|
|
OPEB
|
|
114
|
|
|
116
|
|
|
||
|
Total Noncurrent Assets
|
|
$
|
720
|
|
|
$
|
718
|
|
|
|
Liabilities:
|
|
|
|
|
|
||||
|
Noncurrent:
|
|
|
|
|
|
||||
|
Plant-Related Items
|
|
$
|
3,622
|
|
|
$
|
3,311
|
|
|
|
New Jersey Corporate Business Tax
|
|
486
|
|
|
378
|
|
|
||
|
Pension Costs
|
|
159
|
|
|
152
|
|
|
||
|
Conservation Costs
|
|
36
|
|
|
24
|
|
|
||
|
Taxes Recoverable Through Future Rates (net)
|
|
89
|
|
|
80
|
|
|
||
|
Other
|
|
84
|
|
|
86
|
|
|
||
|
Total Noncurrent Liabilities
|
|
$
|
4,476
|
|
|
$
|
4,031
|
|
|
|
Summary of Accumulated Deferred Income Taxes:
|
|
|
|
|
|
||||
|
Net Noncurrent Deferred Income Tax Liabilities
|
|
$
|
3,756
|
|
|
$
|
3,313
|
|
|
|
ITC
|
|
74
|
|
|
78
|
|
|
||
|
Net Total Noncurrent Deferred Income Taxes and ITC
|
|
$
|
3,830
|
|
|
$
|
3,391
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
Years Ended December 31,
|
|
||||||||||
|
Power
|
|
2018
|
|
2017
|
|
2016
|
|
||||||
|
|
|
Millions
|
|
||||||||||
|
Net Income
|
|
$
|
365
|
|
|
$
|
479
|
|
|
$
|
18
|
|
|
|
Income Taxes:
|
|
|
|
|
|
|
|
||||||
|
Operating Income:
|
|
|
|
|
|
|
|
||||||
|
Current (Benefit) Expense:
|
|
|
|
|
|
|
|
||||||
|
Federal
|
|
$
|
(164
|
)
|
|
$
|
95
|
|
|
$
|
107
|
|
|
|
State
|
|
24
|
|
|
(17
|
)
|
|
40
|
|
|
|||
|
Total Current
|
|
(140
|
)
|
|
78
|
|
|
147
|
|
|
|||
|
Deferred Expense (Benefit):
|
|
|
|
|
|
|
|
||||||
|
Federal
|
|
214
|
|
|
(804
|
)
|
|
(222
|
)
|
|
|||
|
State
|
|
1
|
|
|
(37
|
)
|
|
(68
|
)
|
|
|||
|
Total Deferred
|
|
215
|
|
|
(841
|
)
|
|
(290
|
)
|
|
|||
|
ITC
|
|
(9
|
)
|
|
34
|
|
|
82
|
|
|
|||
|
Total Income Tax Expense (Benefit)
|
|
$
|
66
|
|
|
$
|
(729
|
)
|
|
$
|
(61
|
)
|
|
|
Pre-Tax Income (Loss)
|
|
$
|
431
|
|
|
$
|
(250
|
)
|
|
$
|
(43
|
)
|
|
|
Tax Computed at Statutory Rate @ 21% in 2018 and 35% in 2017 and 2016
|
|
$
|
91
|
|
|
$
|
(88
|
)
|
|
$
|
(15
|
)
|
|
|
Increase (Decrease) Attributable to Flow-Through of Certain Tax Adjustments:
|
|
|
|
|
|
|
|
||||||
|
State Income Taxes (net of federal income tax)
|
|
21
|
|
|
(36
|
)
|
|
(18
|
)
|
|
|||
|
Manufacturing Deduction
|
|
—
|
|
|
(13
|
)
|
|
(17
|
)
|
|
|||
|
NDT Fund
|
|
(13
|
)
|
|
19
|
|
|
3
|
|
|
|||
|
Tax Credits
|
|
(7
|
)
|
|
(12
|
)
|
|
(18
|
)
|
|
|||
|
Uncertain Tax Positions
|
|
(24
|
)
|
|
7
|
|
|
9
|
|
|
|||
|
Audit Settlement
|
|
—
|
|
|
1
|
|
|
—
|
|
|
|||
|
Deferred Tax Benefit - Tax Act
|
|
(1
|
)
|
|
(610
|
)
|
|
—
|
|
|
|||
|
Other
|
|
(1
|
)
|
|
3
|
|
|
(5
|
)
|
|
|||
|
Sub-Total
|
|
(25
|
)
|
|
(641
|
)
|
|
(46
|
)
|
|
|||
|
Total Income Tax Expense (Benefit)
|
|
$
|
66
|
|
|
$
|
(729
|
)
|
|
$
|
(61
|
)
|
|
|
Effective Income Tax Rate
|
|
15.3
|
%
|
|
291.6
|
%
|
|
141.9
|
%
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
As of December 31,
|
|
||||||
|
Power
|
|
2018
|
|
2017
|
|
||||
|
|
|
Millions
|
|
||||||
|
Deferred Income Taxes
|
|
|
|
|
|
||||
|
Assets:
|
|
|
|
|
|
||||
|
Noncurrent:
|
|
|
|
|
|
||||
|
Related to Uncertain Tax Positions
|
|
$
|
60
|
|
|
$
|
45
|
|
|
|
Pension Costs
|
|
52
|
|
|
40
|
|
|
||
|
Contractual Liabilities & Environmental Costs
|
|
9
|
|
|
12
|
|
|
||
|
Other
|
|
98
|
|
|
93
|
|
|
||
|
Total Noncurrent Assets
|
|
$
|
219
|
|
|
$
|
190
|
|
|
|
Liabilities:
|
|
|
|
|
|
||||
|
Noncurrent:
|
|
|
|
|
|
||||
|
Plant-Related Items
|
|
$
|
1,189
|
|
|
$
|
935
|
|
|
|
AROs and NDT Fund
|
|
197
|
|
|
235
|
|
|
||
|
New Jersey Corporate Business Tax
|
|
260
|
|
|
225
|
|
|
||
|
Total Noncurrent Liabilities
|
|
$
|
1,646
|
|
|
$
|
1,395
|
|
|
|
Summary of Accumulated Deferred Income Taxes:
|
|
|
|
|
|
||||
|
Net Noncurrent Deferred Income Tax Liabilities
|
|
$
|
1,427
|
|
|
$
|
1,205
|
|
|
|
ITC
|
|
192
|
|
|
201
|
|
|
||
|
Net Total Noncurrent Deferred Income Taxes and ITC
|
|
$
|
1,619
|
|
|
$
|
1,406
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
2018
|
|
PSEG
|
|
PSE&G
|
|
Power
|
|
Energy
Holdings
|
|
||||||||
|
|
|
Millions
|
|
||||||||||||||
|
Total Amount of Unrecognized Tax Benefits as of January 1, 2018
|
|
$
|
334
|
|
|
$
|
135
|
|
|
$
|
142
|
|
|
$
|
53
|
|
|
|
Increases as a Result of Positions Taken in a Prior Period
|
|
11
|
|
|
4
|
|
|
4
|
|
|
3
|
|
|
||||
|
Decreases as a Result of Positions Taken in a Prior Period
|
|
(70
|
)
|
|
(31
|
)
|
|
(37
|
)
|
|
(2
|
)
|
|
||||
|
Increases as a Result of Positions Taken during the Current Period
|
|
52
|
|
|
3
|
|
|
48
|
|
|
—
|
|
|
||||
|
Decreases as a Result of Positions Taken during the Current Period
|
|
(3
|
)
|
|
(3
|
)
|
|
—
|
|
|
—
|
|
|
||||
|
Decreases as a Result of Settlements with Taxing Authorities
|
|
(6
|
)
|
|
—
|
|
|
(6
|
)
|
|
—
|
|
|
||||
|
Decreases due to Lapses of Applicable Statute of Limitations
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
||||
|
Total Amount of Unrecognized Tax Benefits as of December 31, 2018
|
|
$
|
318
|
|
|
$
|
108
|
|
|
$
|
151
|
|
|
$
|
54
|
|
|
|
Accumulated Deferred Income Taxes Associated with Unrecognized Tax Benefits
|
|
(173
|
)
|
|
(57
|
)
|
|
(104
|
)
|
|
(12
|
)
|
|
||||
|
Regulatory Asset—Unrecognized Tax Benefits
|
|
(46
|
)
|
|
(46
|
)
|
|
—
|
|
|
—
|
|
|
||||
|
Total Amount of Unrecognized Tax Benefits that if Recognized, would Impact the Effective Tax Rate (including Interest and Penalties)
|
|
$
|
99
|
|
|
$
|
5
|
|
|
$
|
47
|
|
|
$
|
42
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
2017
|
|
PSEG
|
|
PSE&G
|
|
Power
|
|
Energy
Holdings
|
|
||||||||
|
|
|
Millions
|
|
||||||||||||||
|
Total Amount of Unrecognized Tax Benefits as of January 1, 2017
|
|
$
|
328
|
|
|
$
|
140
|
|
|
$
|
128
|
|
|
$
|
57
|
|
|
|
Increases as a Result of Positions Taken in a Prior Period
|
|
40
|
|
|
15
|
|
|
18
|
|
|
8
|
|
|
||||
|
Decreases as a Result of Positions Taken in a Prior Period
|
|
(32
|
)
|
|
(11
|
)
|
|
(10
|
)
|
|
(13
|
)
|
|
||||
|
Increases as a Result of Positions Taken during the Current Period
|
|
12
|
|
|
5
|
|
|
6
|
|
|
1
|
|
|
||||
|
Decreases as a Result of Positions Taken during the Current Period
|
|
(1
|
)
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
||||
|
Decreases as a Result of Settlements with Taxing Authorities
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
||||
|
Decreases due to Lapses of Applicable Statute of Limitations
|
|
(13
|
)
|
|
(13
|
)
|
|
—
|
|
|
—
|
|
|
||||
|
Total Amount of Unrecognized Tax Benefits as of December 31, 2017
|
|
$
|
334
|
|
|
$
|
135
|
|
|
$
|
142
|
|
|
$
|
53
|
|
|
|
Accumulated Deferred Income Taxes Associated with Unrecognized Tax Benefits
|
|
(157
|
)
|
|
(73
|
)
|
|
(72
|
)
|
|
(12
|
)
|
|
||||
|
Regulatory Asset—Unrecognized Tax Benefits
|
|
(56
|
)
|
|
(56
|
)
|
|
—
|
|
|
—
|
|
|
||||
|
Total Amount of Unrecognized Tax Benefits that if Recognized, would Impact the Effective Tax Rate (including Interest and Penalties)
|
|
$
|
121
|
|
|
$
|
6
|
|
|
$
|
70
|
|
|
$
|
41
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
2016
|
|
PSEG
|
|
PSE&G
|
|
Power
|
|
Energy
Holdings
|
|
||||||||
|
|
|
Millions
|
|
||||||||||||||
|
Total Amount of Unrecognized Tax Benefits as of January 1, 2016
|
|
$
|
386
|
|
|
$
|
181
|
|
|
$
|
111
|
|
|
$
|
93
|
|
|
|
Increases as a Result of Positions Taken in a Prior Period
|
|
12
|
|
|
3
|
|
|
6
|
|
|
2
|
|
|
||||
|
Decreases as a Result of Positions Taken in a Prior Period
|
|
(62
|
)
|
|
(23
|
)
|
|
(1
|
)
|
|
(38
|
)
|
|
||||
|
Increases as a Result of Positions Taken during the Current Period
|
|
19
|
|
|
6
|
|
|
12
|
|
|
—
|
|
|
||||
|
Decreases as a Result of Positions Taken during the Current Period
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
||||
|
Decreases as a Result of Settlements with Taxing Authorities
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
||||
|
Decreases due to Lapses of Applicable Statute of Limitations
|
|
(27
|
)
|
|
(27
|
)
|
|
—
|
|
|
—
|
|
|
||||
|
Total Amount of Unrecognized Tax Benefits as of December 31, 2016
|
|
$
|
328
|
|
|
$
|
140
|
|
|
$
|
128
|
|
|
$
|
57
|
|
|
|
Accumulated Deferred Income Taxes Associated with Unrecognized Tax Benefits
|
|
(200
|
)
|
|
(106
|
)
|
|
(74
|
)
|
|
(20
|
)
|
|
||||
|
Regulatory Asset—Unrecognized Tax Benefits
|
|
(31
|
)
|
|
(31
|
)
|
|
—
|
|
|
—
|
|
|
||||
|
Total Amount of Unrecognized Tax Benefits that if Recognized, would Impact the Effective Tax Rate (including Interest and Penalties)
|
|
$
|
97
|
|
|
$
|
3
|
|
|
$
|
54
|
|
|
$
|
37
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
Accumulated Interest and Penalties
on Uncertain Tax Positions
as of December 31,
|
|
||||||||||
|
|
|
2018
|
|
2017
|
|
2016
|
|
||||||
|
|
|
Millions
|
|
||||||||||
|
PSE&G
|
|
$
|
12
|
|
|
$
|
25
|
|
|
$
|
22
|
|
|
|
Power
|
|
9
|
|
|
24
|
|
|
17
|
|
|
|||
|
Energy Holdings
|
|
22
|
|
|
21
|
|
|
20
|
|
|
|||
|
Total
|
|
$
|
43
|
|
|
$
|
70
|
|
|
$
|
59
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Possible (Increase)/Decrease in Total Unrecognized Tax Benefits
|
|
Over the next
12 Months
|
|
||
|
|
|
Millions
|
|
||
|
PSEG
|
|
$
|
112
|
|
|
|
PSE&G
|
|
$
|
62
|
|
|
|
Power
|
|
$
|
34
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PSEG
|
|
PSE&G
|
|
Power
|
|
|
United States
|
|
|
|
|
|
|
|
|
Federal
|
|
2011-2017
|
|
N/A
|
|
N/A
|
|
|
New Jersey
|
|
2006-2017
|
|
2011-2017
|
|
N/A
|
|
|
Pennsylvania
|
|
2015-2017
|
|
2015-2017
|
|
N/A
|
|
|
Connecticut
|
|
2016-2017
|
|
N/A
|
|
N/A
|
|
|
California
|
|
2006-2017
|
|
N/A
|
|
N/A
|
|
|
New York
|
|
2017
|
|
N/A
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
PSEG
|
|
Other Comprehensive Income (Loss)
|
|
||||||||||||||
|
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
|
|
2
|
|
|
(45
|
)
|
|
40
|
|
|
(3
|
)
|
|
||||
|
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss)
|
|
—
|
|
|
33
|
|
|
2
|
|
|
35
|
|
|
||||
|
Net Current Period Other Comprehensive Income (Loss)
|
|
2
|
|
|
(12
|
)
|
|
42
|
|
|
32
|
|
|
||||
|
Balance as of December 31, 2016
|
|
$
|
2
|
|
|
$
|
(398
|
)
|
|
$
|
133
|
|
|
$
|
(263
|
)
|
|
|
Other Comprehensive Income before Reclassifications
|
|
—
|
|
|
(32
|
)
|
|
109
|
|
|
77
|
|
|
||||
|
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss)
|
|
(2
|
)
|
|
24
|
|
|
(65
|
)
|
|
(43
|
)
|
|
||||
|
Net Current Period Other Comprehensive Income (Loss)
|
|
(2
|
)
|
|
(8
|
)
|
|
44
|
|
|
34
|
|
|
||||
|
Balance as of December 31, 2017
|
|
$
|
—
|
|
|
$
|
(406
|
)
|
|
$
|
177
|
|
|
$
|
(229
|
)
|
|
|
Cumulative Effect Adjustment to Reclassify Unrealized Net Gains on Equity Investments to Retained Earnings
|
|
—
|
|
|
—
|
|
|
(176
|
)
|
|
(176
|
)
|
|
||||
|
Current Period Other Comprehensive Income (Loss)
|
|
|
|
|
|
|
|
|
|
||||||||
|
Other Comprehensive Income before Reclassifications
|
|
(1
|
)
|
|
17
|
|
|
(25
|
)
|
|
(9
|
)
|
|
||||
|
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss)
|
|
—
|
|
|
29
|
|
|
8
|
|
|
37
|
|
|
||||
|
Net Current Period Other Comprehensive Income (Loss)
|
|
(1
|
)
|
|
46
|
|
|
(17
|
)
|
|
28
|
|
|
||||
|
Net Change in Accumulated Other Comprehensive Income (Loss)
|
|
(1
|
)
|
|
46
|
|
|
(193
|
)
|
|
(148
|
)
|
|
||||
|
Balance as of December 31, 2018
|
|
$
|
(1
|
)
|
|
$
|
(360
|
)
|
|
$
|
(16
|
)
|
|
$
|
(377
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Power
|
|
Other Comprehensive Income (Loss)
|
|
||||||||||||||
|
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
|
|
—
|
|
|
(42
|
)
|
|
39
|
|
|
(3
|
)
|
|
||||
|
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss)
|
|
—
|
|
|
29
|
|
|
3
|
|
|
32
|
|
|
||||
|
Net Current Period Other Comprehensive Income (Loss)
|
|
—
|
|
|
(13
|
)
|
|
42
|
|
|
29
|
|
|
||||
|
Balance as of December 31, 2016
|
|
$
|
—
|
|
|
$
|
(340
|
)
|
|
$
|
129
|
|
|
$
|
(211
|
)
|
|
|
Other Comprehensive Income before Reclassifications
|
|
—
|
|
|
(28
|
)
|
|
106
|
|
|
78
|
|
|
||||
|
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss)
|
|
—
|
|
|
21
|
|
|
(60
|
)
|
|
(39
|
)
|
|
||||
|
Net Current Period Other Comprehensive Income (Loss)
|
|
—
|
|
|
(7
|
)
|
|
46
|
|
|
39
|
|
|
||||
|
Balance as of December 31, 2017
|
|
$
|
—
|
|
|
$
|
(347
|
)
|
|
$
|
175
|
|
|
$
|
(172
|
)
|
|
|
Cumulative Effect Adjustment to Reclassify Unrealized Net Gains on Equity Investments to Retained Earnings
|
|
—
|
|
|
—
|
|
|
(175
|
)
|
|
(175
|
)
|
|
||||
|
Current Period Other Comprehensive Income (Loss)
|
|
|
|
|
|
|
|
|
|
||||||||
|
Other Comprehensive Income before Reclassifications
|
|
—
|
|
|
16
|
|
|
(19
|
)
|
|
(3
|
)
|
|
||||
|
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss)
|
|
—
|
|
|
25
|
|
|
6
|
|
|
31
|
|
|
||||
|
Net Current Period Other Comprehensive Income (Loss)
|
|
—
|
|
|
41
|
|
|
(13
|
)
|
|
28
|
|
|
||||
|
Net Change in Accumulated Other Comprehensive Income (Loss)
|
|
—
|
|
|
41
|
|
|
(188
|
)
|
|
(147
|
)
|
|
||||
|
Balance as of December 31, 2018
|
|
$
|
—
|
|
|
$
|
(306
|
)
|
|
$
|
(13
|
)
|
|
$
|
(319
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
||||||
|
PSEG
|
|
|
|
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) to Income Statement
|
|
||||||||||
|
|
|
|
|
Year Ended December 31, 2016
|
|
||||||||||
|
Description of Amounts Reclassified from Accumulated Other Comprehensive Income (Loss)
|
|
Location of Pre-Tax Amount In Statement of Operations
|
|
Pre-Tax Amount
|
|
Tax (Expense) Benefit
|
|
After-Tax Amount
|
|
||||||
|
|
|
|
|
Millions
|
|
||||||||||
|
Pension and OPEB Plans
|
|
|
|
|
|
|
|
|
|
||||||
|
Amortization of Prior Service (Cost) Credit
|
|
Non-Operating Pension and OPEB Credits (Costs)
|
|
$
|
12
|
|
|
$
|
(5
|
)
|
|
$
|
7
|
|
|
|
Amortization of Actuarial Loss
|
|
Non-Operating Pension and OPEB Credits (Costs)
|
|
(68
|
)
|
|
28
|
|
|
(40
|
)
|
|
|||
|
Total Pension and OPEB Plans
|
|
|
|
(56
|
)
|
|
23
|
|
|
(33
|
)
|
|
|||
|
Available-for-Sale Securities
|
|
|
|
|
|
|
|
|
|
||||||
|
Realized Gains (Losses) and Other-Than-Temporary Impairments (OTTI)
|
|
Net Gains (Losses) on Trust Investments
|
|
(6
|
)
|
|
4
|
|
|
(2
|
)
|
|
|||
|
Total Available-for-Sale Securities
|
|
|
|
(6
|
)
|
|
4
|
|
|
(2
|
)
|
|
|||
|
Total
|
|
|
|
$
|
(62
|
)
|
|
$
|
27
|
|
|
$
|
(35
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Power
|
|
|
|
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) to Income Statement
|
|
||||||||||
|
|
|
|
|
Year Ended December 31, 2016
|
|
||||||||||
|
Description of Amounts Reclassified from Accumulated Other Comprehensive Income (Loss)
|
|
Location of Pre-Tax Amount In Statement of Operations
|
|
Pre-Tax Amount
|
|
Tax (Expense) Benefit
|
|
After-Tax Amount
|
|
||||||
|
|
|
|
|
Millions
|
|
||||||||||
|
Pension and OPEB Plans
|
|
|
|
|
|
|
|
|
|
||||||
|
Amortization of Prior Service (Cost) Credit
|
|
Non-Operating Pension and OPEB Credits (Costs)
|
|
$
|
11
|
|
|
$
|
(5
|
)
|
|
$
|
6
|
|
|
|
Amortization of Actuarial Loss
|
|
Non-Operating Pension and OPEB Credits (Costs)
|
|
(59
|
)
|
|
24
|
|
|
(35
|
)
|
|
|||
|
Total Pension and OPEB Plans
|
|
|
|
(48
|
)
|
|
19
|
|
|
(29
|
)
|
|
|||
|
Available-for-Sale Securities
|
|
|
|
|
|
|
|
|
|
||||||
|
Realized Gains (Losses) and OTTI
|
|
Net Gains (Losses) on Trust Investments
|
|
(6
|
)
|
|
3
|
|
|
(3
|
)
|
|
|||
|
Total Available-for-Sale Securities
|
|
|
|
(6
|
)
|
|
3
|
|
|
(3
|
)
|
|
|||
|
Total
|
|
|
|
$
|
(54
|
)
|
|
$
|
22
|
|
|
$
|
(32
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
||||||
|
PSEG
|
|
|
|
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) to Income Statement
|
|
||||||||||
|
|
|
|
|
Year Ended December 31, 2017
|
|
||||||||||
|
Description of Amounts Reclassified from Accumulated Other Comprehensive Income (Loss)
|
|
Location of Pre-Tax Amount In Statement of Operations
|
|
Pre-Tax Amount
|
|
Tax (Expense) Benefit
|
|
After-Tax Amount
|
|
||||||
|
|
|
|
|
Millions
|
|
||||||||||
|
Cash Flow Hedges
|
|
|
|
|
|
|
|
|
|
||||||
|
Interest Rate Swaps
|
|
Interest Expense
|
|
$
|
3
|
|
|
$
|
(1
|
)
|
|
$
|
2
|
|
|
|
Total Cash Flow Hedges
|
|
|
|
3
|
|
|
(1
|
)
|
|
2
|
|
|
|||
|
Pension and OPEB Plans
|
|
|
|
|
|
|
|
|
|
||||||
|
Amortization of Prior Service (Cost) Credit
|
|
Non-Operating Pension and OPEB Credits (Costs)
|
|
10
|
|
|
(4
|
)
|
|
6
|
|
|
|||
|
Amortization of Actuarial Loss
|
|
Non-Operating Pension and OPEB Credits (Costs)
|
|
(51
|
)
|
|
21
|
|
|
(30
|
)
|
|
|||
|
Total Pension and OPEB Plans
|
|
|
|
(41
|
)
|
|
17
|
|
|
(24
|
)
|
|
|||
|
Available-for-Sale Securities
|
|
|
|
|
|
|
|
|
|
||||||
|
Realized Gains (Losses) and OTTI
|
|
Net Gains (Losses) on Trust Investments
|
|
134
|
|
|
(69
|
)
|
|
65
|
|
|
|||
|
Total Available-for-Sale Securities
|
|
|
|
134
|
|
|
(69
|
)
|
|
65
|
|
|
|||
|
Total
|
|
|
|
$
|
96
|
|
|
$
|
(53
|
)
|
|
$
|
43
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Power
|
|
|
|
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) to Income Statement
|
|
||||||||||
|
|
|
|
|
Year Ended December 31, 2017
|
|
||||||||||
|
Description of Amounts Reclassified from Accumulated Other Comprehensive Income (Loss)
|
|
Location of Pre-Tax Amount In Statement of Operations
|
|
Pre-Tax Amount
|
|
Tax (Expense) Benefit
|
|
After-Tax Amount
|
|
||||||
|
|
|
|
|
Millions
|
|
||||||||||
|
Pension and OPEB Plans
|
|
|
|
|
|
|
|
|
|
||||||
|
Amortization of Prior Service (Cost) Credit
|
|
Non-Operating Pension and OPEB Credits (Costs)
|
|
$
|
9
|
|
|
$
|
(4
|
)
|
|
$
|
5
|
|
|
|
Amortization of Actuarial Loss
|
|
Non-Operating Pension and OPEB Credits (Costs)
|
|
(44
|
)
|
|
18
|
|
|
(26
|
)
|
|
|||
|
Total Pension and OPEB Plans
|
|
|
|
(35
|
)
|
|
14
|
|
|
(21
|
)
|
|
|||
|
Available-for-Sale Securities
|
|
|
|
|
|
|
|
|
|
||||||
|
Realized Gains (Losses) and OTTI
|
|
Net Gains (Losses) on Trust Investments
|
|
125
|
|
|
(65
|
)
|
|
60
|
|
|
|||
|
Total Available-for-Sale Securities
|
|
|
|
125
|
|
|
(65
|
)
|
|
60
|
|
|
|||
|
Total
|
|
|
|
$
|
90
|
|
|
$
|
(51
|
)
|
|
$
|
39
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
||||||
|
PSEG
|
|
|
|
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) to Income Statement
|
|
||||||||||
|
|
|
|
|
Year Ended December 31, 2018
|
|
||||||||||
|
Description of Amounts Reclassified from Accumulated Other Comprehensive Income (Loss)
|
|
Location of Pre-Tax Amount In Statement of Operations
|
|
Pre-Tax Amount
|
|
Tax (Expense) Benefit
|
|
After-Tax Amount
|
|
||||||
|
|
|
|
|
Millions
|
|
||||||||||
|
Pension and OPEB Plans
|
|
|
|
|
|
|
|
|
|
||||||
|
Amortization of Prior Service (Cost) Credit
|
|
Non-Operating Pension and OPEB Credits (Costs)
|
|
$
|
6
|
|
|
$
|
(2
|
)
|
|
$
|
4
|
|
|
|
Amortization of Actuarial Loss
|
|
Non-Operating Pension and OPEB Credits (Costs)
|
|
(47
|
)
|
|
14
|
|
|
(33
|
)
|
|
|||
|
Total Pension and OPEB Plans
|
|
|
|
(41
|
)
|
|
12
|
|
|
(29
|
)
|
|
|||
|
Available-for-Sale Securities
|
|
|
|
|
|
|
|
|
|
||||||
|
Realized Gains (Losses) and OTTI
|
|
Net Gains (Losses) on Trust Investments
|
|
(13
|
)
|
|
5
|
|
|
(8
|
)
|
|
|||
|
Total Available-for-Sale Securities
|
|
|
|
(13
|
)
|
|
5
|
|
|
(8
|
)
|
|
|||
|
Total
|
|
|
|
$
|
(54
|
)
|
|
$
|
17
|
|
|
$
|
(37
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Power
|
|
|
|
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) to Income Statement
|
|
||||||||||
|
|
|
|
|
Year Ended December 31, 2018
|
|
||||||||||
|
Description of Amounts Reclassified from Accumulated Other Comprehensive Income (Loss)
|
|
Location of Pre-Tax Amount In Statement of Operations
|
|
Pre-Tax Amount
|
|
Tax (Expense) Benefit
|
|
After-Tax Amount
|
|
||||||
|
|
|
|
|
Millions
|
|
||||||||||
|
Pension and OPEB Plans
|
|
|
|
|
|
|
|
|
|
||||||
|
Amortization of Prior Service (Cost) Credit
|
|
Non-Operating Pension and OPEB Credits (Costs)
|
|
$
|
5
|
|
|
$
|
(1
|
)
|
|
$
|
4
|
|
|
|
Amortization of Actuarial Loss
|
|
Non-Operating Pension and OPEB Credits (Costs)
|
|
(40
|
)
|
|
11
|
|
|
(29
|
)
|
|
|||
|
Total Pension and OPEB Plans
|
|
|
|
(35
|
)
|
|
10
|
|
|
(25
|
)
|
|
|||
|
Available-for-Sale Securities
|
|
|
|
|
|
|
|
|
|
||||||
|
Realized Gains (Losses) and OTTI
|
|
Net Gains (Losses) on Trust Investments
|
|
(11
|
)
|
|
5
|
|
|
(6
|
)
|
|
|||
|
Total Available-for-Sale Securities
|
|
|
|
(11
|
)
|
|
5
|
|
|
(6
|
)
|
|
|||
|
Total
|
|
|
|
$
|
(46
|
)
|
|
$
|
15
|
|
|
$
|
(31
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
Years Ended December 31,
|
|
||||||||||||||||||||||
|
|
|
2018
|
|
2017
|
|
2016
|
|
||||||||||||||||||
|
|
|
Basic
|
|
Diluted
|
|
Basic
|
|
Diluted
|
|
Basic
|
|
Diluted
|
|
||||||||||||
|
EPS Numerator:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
(Millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Net Income
|
|
$
|
1,438
|
|
|
$
|
1,438
|
|
|
$
|
1,574
|
|
|
$
|
1,574
|
|
|
$
|
887
|
|
|
$
|
887
|
|
|
|
EPS Denominator:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
(Millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Weighted Average Common Shares Outstanding
|
|
504
|
|
|
504
|
|
|
505
|
|
|
505
|
|
|
505
|
|
|
505
|
|
|
||||||
|
Effect of Stock Based Compensation Awards
|
|
—
|
|
|
3
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
3
|
|
|
||||||
|
Total Shares
|
|
504
|
|
|
507
|
|
|
505
|
|
|
507
|
|
|
505
|
|
|
508
|
|
|
||||||
|
EPS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Net Income
|
|
$
|
2.85
|
|
|
$
|
2.83
|
|
|
$
|
3.12
|
|
|
$
|
3.10
|
|
|
$
|
1.76
|
|
|
$
|
1.75
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
Years Ended December 31,
|
|
||||||||||
|
Dividend Payments on Common Stock
|
|
2018
|
|
2017
|
|
2016
|
|
||||||
|
Per Share
|
|
$
|
1.80
|
|
|
$
|
1.72
|
|
|
$
|
1.64
|
|
|
|
in Millions
|
|
$
|
910
|
|
|
$
|
870
|
|
|
$
|
830
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
PSE&G
|
|
Power
|
|
Other (A)
|
|
Eliminations (B)
|
|
Consolidated
Total
|
|
||||||||||
|
|
|
Millions
|
|
||||||||||||||||||
|
Year Ended December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Operating Revenues
|
|
$
|
6,471
|
|
|
$
|
4,146
|
|
|
$
|
571
|
|
|
$
|
(1,492
|
)
|
|
$
|
9,696
|
|
|
|
Depreciation and Amortization
|
|
770
|
|
|
354
|
|
|
34
|
|
|
—
|
|
|
1,158
|
|
|
|||||
|
Operating Income (Loss)
|
|
1,606
|
|
|
596
|
|
|
96
|
|
|
—
|
|
|
2,298
|
|
|
|||||
|
Income from Equity Method Investments
|
|
—
|
|
|
15
|
|
|
—
|
|
|
—
|
|
|
15
|
|
|
|||||
|
Interest Income
|
|
21
|
|
|
5
|
|
|
9
|
|
|
(6
|
)
|
|
29
|
|
|
|||||
|
Interest Expense
|
|
333
|
|
|
76
|
|
|
73
|
|
|
(6
|
)
|
|
476
|
|
|
|||||
|
Income (Loss) before Income Taxes
|
|
1,411
|
|
|
431
|
|
|
13
|
|
|
—
|
|
|
1,855
|
|
|
|||||
|
Income Tax Expense (Benefit)
|
|
344
|
|
|
66
|
|
|
7
|
|
|
—
|
|
|
417
|
|
|
|||||
|
Net Income (Loss)
|
|
$
|
1,067
|
|
|
$
|
365
|
|
|
$
|
6
|
|
|
$
|
—
|
|
|
$
|
1,438
|
|
|
|
Gross Additions to Long-Lived Assets
|
|
$
|
2,896
|
|
|
$
|
996
|
|
|
$
|
20
|
|
|
$
|
—
|
|
|
$
|
3,912
|
|
|
|
As of December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Total Assets
|
|
$
|
31,109
|
|
|
$
|
12,594
|
|
|
$
|
2,604
|
|
|
$
|
(981
|
)
|
|
$
|
45,326
|
|
|
|
Investments in Equity Method Subsidiaries
|
|
$
|
—
|
|
|
$
|
86
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
86
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
PSE&G
|
|
Power
|
|
Other (A)
|
|
Eliminations (B)
|
|
Consolidated
Total
|
|
||||||||||
|
|
|
Millions
|
|
||||||||||||||||||
|
Year Ended December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Operating Revenues
|
|
$
|
6,324
|
|
|
$
|
3,860
|
|
|
$
|
466
|
|
|
$
|
(1,556
|
)
|
|
$
|
9,094
|
|
|
|
Depreciation and Amortization
|
|
685
|
|
|
1,268
|
|
|
33
|
|
|
—
|
|
|
1,986
|
|
|
|||||
|
Operating Income (Loss)
|
|
1,760
|
|
|
(367
|
)
|
|
36
|
|
|
—
|
|
|
1,429
|
|
|
|||||
|
Income from Equity Method Investments
|
|
—
|
|
|
14
|
|
|
—
|
|
|
—
|
|
|
14
|
|
|
|||||
|
Interest Income
|
|
24
|
|
|
3
|
|
|
5
|
|
|
(2
|
)
|
|
30
|
|
|
|||||
|
Interest Expense
|
|
303
|
|
|
50
|
|
|
40
|
|
|
(2
|
)
|
|
391
|
|
|
|||||
|
Income (Loss) before Income Taxes
|
|
1,536
|
|
|
(250
|
)
|
|
(18
|
)
|
|
—
|
|
|
1,268
|
|
|
|||||
|
Income Tax Expense (Benefit)
|
|
563
|
|
|
(729
|
)
|
|
(140
|
)
|
|
—
|
|
|
(306
|
)
|
|
|||||
|
Net Income (Loss)
|
|
$
|
973
|
|
|
$
|
479
|
|
|
$
|
122
|
|
|
$
|
—
|
|
|
$
|
1,574
|
|
|
|
Gross Additions to Long-Lived Assets
|
|
$
|
2,919
|
|
|
$
|
1,231
|
|
|
$
|
40
|
|
|
$
|
—
|
|
|
$
|
4,190
|
|
|
|
As of December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Total Assets
|
|
$
|
28,554
|
|
|
$
|
12,418
|
|
|
$
|
2,666
|
|
|
$
|
(922
|
)
|
|
$
|
42,716
|
|
|
|
Investments in Equity Method Subsidiaries
|
|
$
|
—
|
|
|
$
|
87
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
87
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
PSE&G
|
|
Power
|
|
Other (A)
|
|
Eliminations (B)
|
|
Consolidated
Total
|
|
||||||||||
|
|
|
Millions
|
|
||||||||||||||||||
|
Year Ended December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Operating Revenues
|
|
$
|
6,303
|
|
|
$
|
3,861
|
|
|
$
|
370
|
|
|
$
|
(1,568
|
)
|
|
$
|
8,966
|
|
|
|
Depreciation and Amortization
|
|
565
|
|
|
881
|
|
|
30
|
|
|
—
|
|
|
1,476
|
|
|
|||||
|
Operating Income (Loss)
|
|
1,629
|
|
|
17
|
|
|
(48
|
)
|
|
—
|
|
|
1,598
|
|
|
|||||
|
Income from Equity Method Investments
|
|
—
|
|
|
11
|
|
|
—
|
|
|
—
|
|
|
11
|
|
|
|||||
|
Interest Income
|
|
24
|
|
|
4
|
|
|
4
|
|
|
(2
|
)
|
|
30
|
|
|
|||||
|
Interest Expense
|
|
289
|
|
|
84
|
|
|
14
|
|
|
(2
|
)
|
|
385
|
|
|
|||||
|
Income (Loss) before Income Taxes
|
|
1,404
|
|
|
(43
|
)
|
|
(63
|
)
|
|
—
|
|
|
1,298
|
|
|
|||||
|
Income Tax Expense (Benefit)
|
|
515
|
|
|
(61
|
)
|
|
(43
|
)
|
|
—
|
|
|
411
|
|
|
|||||
|
Net Income (Loss)
|
|
$
|
889
|
|
|
$
|
18
|
|
|
$
|
(20
|
)
|
|
$
|
—
|
|
|
$
|
887
|
|
|
|
Gross Additions to Long-Lived Assets
|
|
$
|
2,816
|
|
|
$
|
1,343
|
|
|
$
|
40
|
|
|
$
|
—
|
|
|
$
|
4,199
|
|
|
|
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 primarily relate to intercompany transactions between PSE&G and Power. For a further discussion of the intercompany transactions between PSE&G and Power, see
Note 25. Related-Party Transactions
.
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
Years Ended December 31,
|
|
||||||||||
|
Related Party Transactions
|
|
2018
|
|
2017
|
|
2016
|
|
||||||
|
|
|
Millions
|
|
||||||||||
|
Billings from Affiliates:
|
|
|
|
|
|
|
|
||||||
|
Net Billings from Power primarily through BGS and BGSS (A)
|
|
$
|
1,514
|
|
|
$
|
1,580
|
|
|
$
|
1,587
|
|
|
|
Administrative Billings from Services (B)
|
|
333
|
|
|
331
|
|
|
312
|
|
|
|||
|
Total Billings from Affiliates
|
|
$
|
1,847
|
|
|
$
|
1,911
|
|
|
$
|
1,899
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
Years Ended December 31,
|
|
||||||
|
Related Party Transactions
|
|
2018
|
|
2017
|
|
||||
|
|
|
Millions
|
|
||||||
|
Receivables from PSEG (C)
|
|
$
|
123
|
|
|
$
|
—
|
|
|
|
Payable to Power (A)
|
|
$
|
245
|
|
|
$
|
221
|
|
|
|
Payable to Services (B)
|
|
76
|
|
|
78
|
|
|
||
|
Payable to PSEG (C)
|
|
—
|
|
|
41
|
|
|
||
|
Accounts Payable—Affiliated Companies
|
|
$
|
321
|
|
|
$
|
340
|
|
|
|
Working Capital Advances to Services (D)
|
|
$
|
33
|
|
|
$
|
33
|
|
|
|
Long-Term Accrued Taxes Payable
|
|
$
|
69
|
|
|
$
|
91
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
Years Ended December 31,
|
|
||||||||||
|
Related Party Transactions
|
|
2018
|
|
2017
|
|
2016
|
|
||||||
|
|
|
Millions
|
|
||||||||||
|
Billings to Affiliates:
|
|
|
|
|
|
|
|
||||||
|
Net Billings to PSE&G primarily through BGS and BGSS (A)
|
|
$
|
1,514
|
|
|
$
|
1,580
|
|
|
1,587
|
|
|
|
|
Billings from Affiliates:
|
|
|
|
|
|
|
|
||||||
|
Administrative Billings from Services (B)
|
|
$
|
145
|
|
|
$
|
168
|
|
|
$
|
179
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
Years Ended December 31,
|
|
||||||
|
Related Party Transactions
|
|
2018
|
|
2017
|
|
||||
|
|
|
Millions
|
|
||||||
|
Receivable from PSE&G (A)
|
|
$
|
245
|
|
|
$
|
221
|
|
|
|
Receivables from PSEG (C)
|
|
29
|
|
|
—
|
|
|
||
|
Accounts Receivable—Affiliated Companies
|
|
$
|
274
|
|
|
$
|
221
|
|
|
|
Payable to Services (B)
|
|
$
|
16
|
|
|
$
|
28
|
|
|
|
Payable to PSEG (C)
|
|
—
|
|
|
29
|
|
|
||
|
Accounts Payable—Affiliated Companies
|
|
$
|
16
|
|
|
$
|
57
|
|
|
|
Short-Term Loan due to Affiliate (E)
|
|
$
|
193
|
|
|
$
|
281
|
|
|
|
Working Capital Advances to Services (D)
|
|
$
|
17
|
|
|
$
|
17
|
|
|
|
Long-Term Accrued Taxes Payable
|
|
$
|
76
|
|
|
$
|
52
|
|
|
|
|
|
|
|
|
|
(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. The rates in the BGS and BGSS contracts are prescribed by the BPU. 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 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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
|
|
Quarter Ended
|
|
||||||||||||||||||||||||||||||
|
|
|
March 31, (A)
|
|
June 30, (A)
|
|
September 30,
|
|
December 31, (A)
|
|
||||||||||||||||||||||||
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
||||||||||||||||
|
PSEG Consolidated:
|
|
Millions, except per share data
|
|
||||||||||||||||||||||||||||||
|
Operating Revenues
|
|
$
|
2,818
|
|
|
$
|
2,591
|
|
|
$
|
2,016
|
|
|
$
|
2,142
|
|
|
$
|
2,394
|
|
|
$
|
2,254
|
|
|
$
|
2,468
|
|
|
$
|
2,107
|
|
|
|
Operating Income
|
|
$
|
832
|
|
|
$
|
178
|
|
|
$
|
411
|
|
|
$
|
195
|
|
|
$
|
554
|
|
|
$
|
693
|
|
|
$
|
501
|
|
|
$
|
363
|
|
|
|
Net Income
|
|
$
|
558
|
|
|
$
|
114
|
|
|
$
|
269
|
|
|
$
|
109
|
|
|
$
|
412
|
|
|
$
|
395
|
|
|
$
|
199
|
|
|
$
|
956
|
|
|
|
Earnings Per Share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Basic:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Net Income
|
|
$
|
1.11
|
|
|
$
|
0.23
|
|
|
$
|
0.53
|
|
|
$
|
0.22
|
|
|
$
|
0.82
|
|
|
$
|
0.78
|
|
|
$
|
0.39
|
|
|
$
|
1.89
|
|
|
|
Diluted:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Net Income
|
|
$
|
1.10
|
|
|
$
|
0.22
|
|
|
$
|
0.53
|
|
|
$
|
0.22
|
|
|
$
|
0.81
|
|
|
$
|
0.78
|
|
|
$
|
0.39
|
|
|
$
|
1.88
|
|
|
|
Weighted Average Common Shares Outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Basic
|
|
504
|
|
|
505
|
|
|
504
|
|
|
505
|
|
|
504
|
|
|
505
|
|
|
504
|
|
|
505
|
|
|
||||||||
|
Diluted
|
|
507
|
|
|
508
|
|
|
507
|
|
|
507
|
|
|
507
|
|
|
507
|
|
|
508
|
|
|
508
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
|
|
Quarter Ended
|
|
||||||||||||||||||||||||||||||
|
|
|
March 31,
|
|
June 30,
|
|
September 30,
|
|
December 31,
|
|
||||||||||||||||||||||||
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
||||||||||||||||
|
PSE&G:
|
|
Millions
|
|
||||||||||||||||||||||||||||||
|
Operating Revenues
|
|
$
|
1,845
|
|
|
$
|
1,826
|
|
|
$
|
1,386
|
|
|
$
|
1,393
|
|
|
$
|
1,595
|
|
|
$
|
1,530
|
|
|
$
|
1,645
|
|
|
$
|
1,575
|
|
|
|
Operating Income
|
|
$
|
482
|
|
|
$
|
523
|
|
|
$
|
358
|
|
|
$
|
380
|
|
|
$
|
421
|
|
|
$
|
461
|
|
|
$
|
345
|
|
|
$
|
396
|
|
|
|
Net Income
|
|
$
|
319
|
|
|
$
|
299
|
|
|
$
|
231
|
|
|
$
|
208
|
|
|
$
|
278
|
|
|
$
|
246
|
|
|
$
|
239
|
|
|
$
|
220
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
|
|
Quarter Ended
|
|
||||||||||||||||||||||||||||||
|
|
|
March 31, (A)
|
|
June 30, (A)
|
|
September 30,
|
|
December 31, (A)
|
|
||||||||||||||||||||||||
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
||||||||||||||||
|
Power:
|
|
Millions
|
|
||||||||||||||||||||||||||||||
|
Operating Revenues
|
|
$
|
1,403
|
|
|
$
|
1,269
|
|
|
$
|
767
|
|
|
$
|
918
|
|
|
$
|
868
|
|
|
$
|
846
|
|
|
$
|
1,108
|
|
|
$
|
827
|
|
|
|
Operating Income (Loss)
|
|
$
|
329
|
|
|
$
|
(305
|
)
|
|
$
|
42
|
|
|
$
|
(189
|
)
|
|
$
|
112
|
|
|
$
|
211
|
|
|
$
|
113
|
|
|
$
|
(84
|
)
|
|
|
Net Income (Loss)
|
|
$
|
234
|
|
|
$
|
(170
|
)
|
|
$
|
41
|
|
|
$
|
(97
|
)
|
|
$
|
125
|
|
|
$
|
136
|
|
|
$
|
(35
|
)
|
|
$
|
610
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(A)
|
The increases in Operating Income at PSEG consolidated and Power in the first and second quarters of 2018 as compared to the same quarters in 2017 were primarily due to higher costs in 2017 related to closing the coal/gas Hudson and Mercer units, which were fully depreciated as of June 1, 2017. The increases in Operating Income at PSEG consolidated and Power in the fourth quarter 2018 as compared to the same quarter in 2017 were primarily due to lower MTM losses and a gain on the sale of the Hudson and Mercer units.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
Power
|
|
Guarantor
Subsidiaries
|
|
Other
Subsidiaries
|
|
Consolidating
Adjustments
|
|
Total
|
|
||||||||||
|
|
|
Millions
|
|
||||||||||||||||||
|
Year Ended December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Operating Revenues
|
|
$
|
—
|
|
|
$
|
4,078
|
|
|
$
|
224
|
|
|
$
|
(156
|
)
|
|
$
|
4,146
|
|
|
|
Operating Expenses
|
|
14
|
|
|
3,460
|
|
|
232
|
|
|
(156
|
)
|
|
3,550
|
|
|
|||||
|
Operating Income (Loss)
|
|
(14
|
)
|
|
618
|
|
|
(8
|
)
|
|
—
|
|
|
596
|
|
|
|||||
|
Equity Earnings (Losses) of Subsidiaries
|
|
406
|
|
|
(28
|
)
|
|
15
|
|
|
(378
|
)
|
|
15
|
|
|
|||||
|
Net Gains (Losses) on Trust Investments
|
|
(1
|
)
|
|
(139
|
)
|
|
—
|
|
|
—
|
|
|
(140
|
)
|
|
|||||
|
Other Income (Deductions)
|
|
135
|
|
|
166
|
|
|
—
|
|
|
(280
|
)
|
|
21
|
|
|
|||||
|
Non-Operating Pension and OPEB Credits (Costs)
|
|
—
|
|
|
13
|
|
|
2
|
|
|
—
|
|
|
15
|
|
|
|||||
|
Interest Expense
|
|
(230
|
)
|
|
(96
|
)
|
|
(30
|
)
|
|
280
|
|
|
(76
|
)
|
|
|||||
|
Income Tax Benefit (Expense)
|
|
69
|
|
|
(143
|
)
|
|
8
|
|
|
—
|
|
|
(66
|
)
|
|
|||||
|
Net Income (Loss)
|
|
$
|
365
|
|
|
$
|
391
|
|
|
$
|
(13
|
)
|
|
$
|
(378
|
)
|
|
$
|
365
|
|
|
|
Comprehensive Income (Loss)
|
|
$
|
393
|
|
|
$
|
379
|
|
|
$
|
(13
|
)
|
|
$
|
(366
|
)
|
|
$
|
393
|
|
|
|
As of December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Current Assets
|
|
$
|
4,317
|
|
|
$
|
1,479
|
|
|
$
|
304
|
|
|
$
|
(4,593
|
)
|
|
$
|
1,507
|
|
|
|
Property, Plant and Equipment, net
|
|
49
|
|
|
4,971
|
|
|
3,822
|
|
|
—
|
|
|
8,842
|
|
|
|||||
|
Investment in Subsidiaries
|
|
5,062
|
|
|
1,107
|
|
|
—
|
|
|
(6,169
|
)
|
|
—
|
|
|
|||||
|
Noncurrent Assets
|
|
273
|
|
|
2,109
|
|
|
101
|
|
|
(238
|
)
|
|
2,245
|
|
|
|||||
|
Total Assets
|
|
$
|
9,701
|
|
|
$
|
9,666
|
|
|
$
|
4,227
|
|
|
$
|
(11,000
|
)
|
|
$
|
12,594
|
|
|
|
Current Liabilities
|
|
$
|
437
|
|
|
$
|
2,971
|
|
|
$
|
2,027
|
|
|
$
|
(4,593
|
)
|
|
$
|
842
|
|
|
|
Noncurrent Liabilities
|
|
513
|
|
|
1,996
|
|
|
730
|
|
|
(238
|
)
|
|
3,001
|
|
|
|||||
|
Long-Term Debt
|
|
2,791
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,791
|
|
|
|||||
|
Member’s Equity
|
|
5,960
|
|
|
4,699
|
|
|
1,470
|
|
|
(6,169
|
)
|
|
5,960
|
|
|
|||||
|
Total Liabilities and Member’s Equity
|
|
$
|
9,701
|
|
|
$
|
9,666
|
|
|
$
|
4,227
|
|
|
$
|
(11,000
|
)
|
|
$
|
12,594
|
|
|
|
Year Ended December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Net Cash Provided By (Used In) Operating Activities
|
|
$
|
(74
|
)
|
|
$
|
1,007
|
|
|
$
|
42
|
|
|
$
|
109
|
|
|
$
|
1,084
|
|
|
|
Net Cash Provided By (Used In) Investing Activities
|
|
$
|
(402
|
)
|
|
$
|
(1,034
|
)
|
|
$
|
(406
|
)
|
|
$
|
791
|
|
|
$
|
(1,051
|
)
|
|
|
Net Cash Provided By (Used In) Financing Activities
|
|
$
|
476
|
|
|
$
|
27
|
|
|
$
|
354
|
|
|
$
|
(900
|
)
|
|
$
|
(43
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
Power
|
|
Guarantor
Subsidiaries
|
|
Other
Subsidiaries
|
|
Consolidating
Adjustments
|
|
Total
|
|
||||||||||
|
|
|
Millions
|
|
||||||||||||||||||
|
Year Ended December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Operating Revenues
|
|
$
|
—
|
|
|
$
|
3,821
|
|
|
$
|
174
|
|
|
$
|
(135
|
)
|
|
$
|
3,860
|
|
|
|
Operating Expenses
|
|
8
|
|
|
4,159
|
|
|
195
|
|
|
(135
|
)
|
|
4,227
|
|
|
|||||
|
Operating Income (Loss)
|
|
(8
|
)
|
|
(338
|
)
|
|
(21
|
)
|
|
—
|
|
|
(367
|
)
|
|
|||||
|
Equity Earnings (Losses) of Subsidiaries
|
|
567
|
|
|
60
|
|
|
14
|
|
|
(627
|
)
|
|
14
|
|
|
|||||
|
Net Gains (Losses) on Trust Investments
|
|
3
|
|
|
122
|
|
|
—
|
|
|
—
|
|
|
125
|
|
|
|||||
|
Other Income (Deductions)
|
|
71
|
|
|
91
|
|
|
2
|
|
|
(144
|
)
|
|
20
|
|
|
|||||
|
Non-Operating Pension and OPEB Credits (Costs)
|
|
—
|
|
|
8
|
|
|
—
|
|
|
—
|
|
|
8
|
|
|
|||||
|
Interest Expense
|
|
(128
|
)
|
|
(49
|
)
|
|
(17
|
)
|
|
144
|
|
|
(50
|
)
|
|
|||||
|
Income Tax Benefit (Expense)
|
|
(26
|
)
|
|
588
|
|
|
167
|
|
|
—
|
|
|
729
|
|
|
|||||
|
Net Income (Loss)
|
|
$
|
479
|
|
|
$
|
482
|
|
|
$
|
145
|
|
|
$
|
(627
|
)
|
|
$
|
479
|
|
|
|
Comprehensive Income (Loss)
|
|
$
|
518
|
|
|
$
|
529
|
|
|
$
|
145
|
|
|
$
|
(674
|
)
|
|
$
|
518
|
|
|
|
As of December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Current Assets
|
|
$
|
4,327
|
|
|
$
|
1,500
|
|
|
$
|
200
|
|
|
$
|
(4,686
|
)
|
|
$
|
1,341
|
|
|
|
Property, Plant and Equipment, net
|
|
54
|
|
|
5,778
|
|
|
2,764
|
|
|
—
|
|
|
8,596
|
|
|
|||||
|
Investment in Subsidiaries
|
|
4,844
|
|
|
404
|
|
|
—
|
|
|
(5,248
|
)
|
|
—
|
|
|
|||||
|
Noncurrent Assets
|
|
100
|
|
|
2,349
|
|
|
110
|
|
|
(78
|
)
|
|
2,481
|
|
|
|||||
|
Total Assets
|
|
$
|
9,325
|
|
|
$
|
10,031
|
|
|
$
|
3,074
|
|
|
$
|
(10,012
|
)
|
|
$
|
12,418
|
|
|
|
Current Liabilities
|
|
$
|
689
|
|
|
$
|
3,586
|
|
|
$
|
1,846
|
|
|
$
|
(4,686
|
)
|
|
$
|
1,435
|
|
|
|
Noncurrent Liabilities
|
|
533
|
|
|
1,966
|
|
|
459
|
|
|
(78
|
)
|
|
2,880
|
|
|
|||||
|
Long-Term Debt
|
|
2,136
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,136
|
|
|
|||||
|
Member’s Equity
|
|
5,967
|
|
|
4,479
|
|
|
769
|
|
|
(5,248
|
)
|
|
5,967
|
|
|
|||||
|
Total Liabilities and Member’s Equity
|
|
$
|
9,325
|
|
|
$
|
10,031
|
|
|
$
|
3,074
|
|
|
$
|
(10,012
|
)
|
|
$
|
12,418
|
|
|
|
Year Ended December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Net Cash Provided By (Used In) Operating Activities
|
|
$
|
(42
|
)
|
|
$
|
1,185
|
|
|
$
|
238
|
|
|
$
|
(55
|
)
|
|
$
|
1,326
|
|
|
|
Net Cash Provided By (Used In) Investing Activities
|
|
$
|
506
|
|
|
$
|
(448
|
)
|
|
$
|
(525
|
)
|
|
$
|
(765
|
)
|
|
$
|
(1,232
|
)
|
|
|
Net Cash Provided By (Used In) Financing Activities
|
|
$
|
(464
|
)
|
|
$
|
(736
|
)
|
|
$
|
307
|
|
|
$
|
820
|
|
|
$
|
(73
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
Power
|
|
Guarantor
Subsidiaries
|
|
Other
Subsidiaries
|
|
Consolidating
Adjustments
|
|
Total
|
|
||||||||||
|
|
|
Millions
|
|
||||||||||||||||||
|
Year Ended December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Operating Revenues
|
|
$
|
—
|
|
|
$
|
3,809
|
|
|
$
|
173
|
|
|
$
|
(121
|
)
|
|
$
|
3,861
|
|
|
|
Operating Expenses
|
|
8
|
|
|
3,796
|
|
|
161
|
|
|
(121
|
)
|
|
3,844
|
|
|
|||||
|
Operating Income (Loss)
|
|
(8
|
)
|
|
13
|
|
|
12
|
|
|
—
|
|
|
17
|
|
|
|||||
|
Equity Earnings (Losses) of Subsidiaries
|
|
36
|
|
|
(3
|
)
|
|
11
|
|
|
(33
|
)
|
|
11
|
|
|
|||||
|
Net Gains (Losses) on Trust Investments
|
|
1
|
|
|
(7
|
)
|
|
—
|
|
|
—
|
|
|
(6
|
)
|
|
|||||
|
Other Income (Deductions)
|
|
52
|
|
|
60
|
|
|
—
|
|
|
(89
|
)
|
|
23
|
|
|
|||||
|
Non-Operating Pension and OPEB Credits (Costs)
|
|
—
|
|
|
(4
|
)
|
|
—
|
|
|
—
|
|
|
(4
|
)
|
|
|||||
|
Interest Expense
|
|
(115
|
)
|
|
(40
|
)
|
|
(18
|
)
|
|
89
|
|
|
(84
|
)
|
|
|||||
|
Income Tax Benefit (Expense)
|
|
52
|
|
|
(11
|
)
|
|
20
|
|
|
—
|
|
|
61
|
|
|
|||||
|
Net Income (Loss)
|
|
$
|
18
|
|
|
$
|
8
|
|
|
$
|
25
|
|
|
$
|
(33
|
)
|
|
$
|
18
|
|
|
|
Comprehensive Income (Loss)
|
|
$
|
47
|
|
|
$
|
50
|
|
|
$
|
25
|
|
|
$
|
(75
|
)
|
|
$
|
47
|
|
|
|
Year Ended December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Net Cash Provided By (Used In) Operating Activities
|
|
$
|
97
|
|
|
$
|
1,442
|
|
|
$
|
323
|
|
|
$
|
(607
|
)
|
|
$
|
1,255
|
|
|
|
Net Cash Provided By (Used In) Investing Activities
|
|
$
|
60
|
|
|
$
|
(707
|
)
|
|
$
|
(789
|
)
|
|
$
|
289
|
|
|
$
|
(1,147
|
)
|
|
|
Net Cash Provided By (Used In) Financing Activities
|
|
$
|
(157
|
)
|
|
$
|
(736
|
)
|
|
$
|
466
|
|
|
$
|
318
|
|
|
$
|
(109
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
/s/ R
ALPH
I
ZZO
|
|
Chief Executive Officer
|
|
|
|
/s/ D
ANIEL
J. C
REGG
|
|
Chief Financial Officer
|
|
February 27, 2019
|
|
|
|
/s/ R
ALPH
I
ZZO
|
|
Chief Executive Officer
|
|
|
|
/s/ D
ANIEL
J. C
REGG
|
|
Chief Financial Officer
|
|
February 27, 2019
|
|
|
|
/s/ R
ALPH
I
ZZO
|
|
Chief Executive Officer
|
|
|
|
/s/ D
ANIEL
J. C
REGG
|
|
Chief Financial Officer
|
|
February 27, 2019
|
|
•
|
Any amendment (other than one that is technical, administrative or non-substantive) that we adopt to our Standards; and
|
•
|
Any grant by us of a waiver from the Standards that applies to any director or executive officer and that relates to any element enumerated by the SEC.
|
a.
|
Public Service Enterprise Group Incorporated’s Consolidated Balance Sheets as of
December 31, 2018
and
2017
and the related Consolidated Statements of Operations, Comprehensive Income, Cash Flows and Stockholders’ Equity for the three years ended
December 31, 2018
on pages 75 through 80.
|
b.
|
Public Service Electric and Gas Company’s Consolidated Balance Sheets as of
December 31, 2018
and
2017
and the related Consolidated Statements of Operations, Comprehensive Income, Cash Flows and Common Stockholder’s Equity for the three years ended
December 31, 2018
on pages 81 through 86.
|
c.
|
PSEG Power LLC’s Consolidated Balance Sheets as of
December 31, 2018
and
2017
and the related Consolidated Statements of Operations, Comprehensive Income, Cash Flows and Capitalization and Member’s Equity for the three years ended
December 31, 2018
on pages 87 through 92.
|
a.
|
PSEG’s Financial Statement Schedules:
|
b.
|
PSE&G’s Financial Statement Schedules:
|
c.
|
Power’s Financial Statement Schedules:
|
LIST OF EXHIBITS:
|
||
4a(1)
|
|
Indenture between PSE&G and Fidelity Union Trust Company (now, Wachovia Bank, National Association), as Trustee, dated August 1, 1924
(27)
, securing First and Refunding Mortgage Bond and Supplemental Indentures between PSE&G and U.S. Bank National Association, successor, as Trustee, supplemental to Exhibit 4a(1), dated as follows:
|
4a(2)
|
|
June 1, 1937
(28)
|
4a(3)
|
|
July 1, 1937
(29)
|
4a(4)
|
|
June 1, 1991 (No. 1)
(30)
|
4a(5)
|
|
July 1, 1993
(31)
|
|
||
|
April 1, 2007
(33)
|
|
|
November 1, 2009
(34)
|
|
|
May 1, 2012
(35)
|
|
|
May 1, 2013
(36)
|
|
|
August 1, 2014
(37)
|
|
|
May 1, 2015
(38)
|
|
|
September 1, 2016
(39)
|
|
|
April 1,2018
(40)
|
|
4b
|
|
Indenture of Trust between PSE&G and Chase Manhattan Bank (National Association) (The Bank of New York Mellon, successor), as Trustee, providing for Secured Medium-Term Notes dated July 1, 1993
(41)
|
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
LIST OF EXHIBITS:
|
||
101.INS
|
|
XBRL Instance Document
|
101.SCH
|
|
XBRL Taxonomy Extension Schema
|
101.CAL
|
|
XBRL Taxonomy Calculation Linkbase
|
101.LAB
|
|
XBRL Taxonomy Extension Labels Linkbase
|
101.PRE
|
|
XBRL Taxonomy Extension Presentation Linkbase
|
101.DEF
|
|
XBRL Taxonomy Extension Definition Document
|
c.
|
|
Power:
|
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
101.INS
|
|
XBRL Instance Document
|
101.SCH
|
|
XBRL Taxonomy Extension Schema
|
101.CAL
|
|
XBRL Taxonomy Calculation Linkbase
|
101.LAB
|
|
XBRL Taxonomy Extension Labels Linkbase
|
101.PRE
|
|
XBRL Taxonomy Extension Presentation Linkbase
|
101.DEF
|
|
XBRL Taxonomy Extension Definition Document
|
(1)
|
Filed as Exhibit 3.1a with Quarterly Report on Form 10-Q for the quarter ended March 31, 2007, File No. 001-09120, on May 4, 2007 and incorporated herein by this reference.
|
(2)
|
Filed as Exhibit 3.1b with Quarterly Report on Form 10-Q for the quarter ended March 31, 2007, File No. 001-09120, on May 4, 2007 and incorporated herein by this reference.
|
(3)
|
Filed as Exhibit 3.1c with Quarterly Report on Form 10-Q for the quarter ended March 31, 2007, File No. 001-09120, on May 4, 2007 and incorporated herein by this reference.
|
(4)
|
Filed as Exhibit 99.1 with Current Report on Form 8-K, File No. 001-09120, on December 16, 2015 and incorporated herein by this reference.
|
(5)
|
Filed as Exhibit 4(f) with Quarterly Report on Form 10-Q for the quarter ended March 31, 1998, File No. 001-09120, on May 13, 1998 and incorporated herein by this reference.
|
(6)
|
Filed as Exhibit 4(f) to the Annual Report on Form 10-K for the year ended December 31, 1998, File No. 001-09120, on February 23, 1999 and incorporated herein by this reference
|
(7)
|
Filed as Exhibit 10.1 with Quarterly Report on Form 10-Q for the quarter ended June 30, 2017, File No. 001-09120, on July 28, 2017 and incorporated herein by this reference.
|
(8)
|
Filed as Exhibit 10.2 with Quarterly Report on Form 10-Q for the quarter ended June 30, 2017, File No. 001-09120, on July 28, 2017 and incorporated herein by this reference.
|
(9)
|
Filed as Exhibit 10 with Quarterly Report on Form 10-Q for the quarter ended September 30, 2002, File No. 001-09120, on November 4, 2002 and incorporated herein by this reference.
|
(10)
|
Filed as Exhibit 10a(7) with Annual Report on Form 10-K for the year ended December 31, 2000, File No. 001-09120, on March 6, 2001 and incorporated herein by this reference.
|
(11)
|
Filed as Exhibit 10a(11) with Annual Report on Form 10-K for the year ended December 31, 2008, File No. 001-09120, on February 26, 2009 and incorporated herein by this reference.
|
(12)
|
Filed as Exhibit 99 with Current Report on Form 8-K, File Nos. 001-09120, 000-49614 and 001-00973, on December 22, 2008 and incorporated herein by this reference.
|
(13)
|
Filed as Exhibit 10a(17) with Annual Report on Form 10-K for the year ended December 31, 2002, File No. 001-09120, on February 26, 2003 and incorporated herein by this reference.
|
(14)
|
Filed as Exhibit 10a(20) with Annual Report on Form 10-K for the year ended December 31, 2002, File No. 001-09120, on February 26, 2003 and incorporated herein by this reference.
|
(15)
|
Filed as Exhibit 10 with Quarterly Report on Form 10-Q for the quarter ended March 31, 2013, File No. 001-09120, on May 1, 2013 and incorporated herein by this reference.
|
(16)
|
Filed as Exhibit 10.1 with Current Report on Form 8-K, File No. 001-09120, on February 19, 2009 and incorporated herein by this reference.
|
(17)
|
Filed as Exhibit 10a with Annual Report on Form 10-K for the year ended December 31, 2014, File No. 001-09120, on February 26, 2015, and incorporated herein by this reference.
|
(18)
|
Filed as Exhibit 10 with Quarterly Report on Form 10-Q for the quarter ended September 30, 2015, File No. 001-09120, on October 30, 2015, and incorporated herein by this reference.
|
(19)
|
Filed as Exhibit 10a(20) with Annual Report on Form 10-K for the year ended December 31, 2017, File No. 001-09120 on February 26, 2018 and incorporated herein by this reference.
|
(20)
|
Filed as Exhibit 10a(21) with Annual Report on Form 10-K for the year ended December 31, 2017, File No. 001-09120 on February 26, 2018 and incorporated herein by this reference.
|
(21)
|
Filed as Exhibit 3(a) with Quarterly Report on Form 10-Q for the quarter ended June 30, 1986, File No. 001-00973, on August 28, 1986 and incorporated herein by this reference.
|
(22)
|
Filed as Exhibit 3a(2) with Annual Report on Form 10-K for the year ended December 31, 1987, File No. 001-00973, on March 28, 1988 and incorporated herein by this reference.
|
(23)
|
Filed as Exhibit 3a(3) on Form 8-A, File No. 001-00973, on February 4, 1994 and incorporated herein by this reference.
|
(24)
|
Filed as Exhibit 3a(4) on Form 8-A, File No. 001-00973, on February 4, 1994 and incorporated herein by this reference.
|
(25)
|
Filed as Exhibit 3a(5) on Form 8-A, File No. 001-00973, on February 4, 1994 and incorporated herein by this reference.
|
(26)
|
Filed as Exhibit 3.3 with Quarterly Report on Form 10-Q for the quarter ended March 31, 2007, File No. 001-00973, on May 4, 2007 and incorporated herein by this reference.
|
(27)
|
Filed as Exhibit 4b(1) with Annual Report on Form 10-K for the year ended December 31, 1980, File No. 001-00973, on February 18, 1981 and incorporated herein by this reference.
|
(28)
|
Filed as Exhibit 4b(3) with Annual Report on Form 10-K for the year ended December 31, 1980, File No. 001-00973, on February 18, 1981 and incorporated herein by this reference.
|
(29)
|
Filed as Exhibit 4b(4) with Annual Report on Form 10-K for the year ended December 31, 1980, File No. 001-00973, on February 18, 1981 and incorporated herein by this reference.
|
(30)
|
Filed as Exhibit 4(i) on Form 8-A, File No. 001-00973, on June 1, 1991 and incorporated herein by this reference.
|
(31)
|
Filed as Exhibit 4(ii) on Form 8-A, File No. 001-00973, on May 25, 1993 and incorporated herein by this reference.
|
(32)
|
Filed as Exhibit 4a(28) with Annual Report on Form 10-K for the year ended December 31, 2004, File No. 001-00973, on March 1, 2005 and incorporated herein by this reference.
|
(33)
|
Filed as Exhibit 4a(28) with Annual Report on Form 10-K for the year ended December 31, 2007, File No. 001-00973, on February 28, 2008 and incorporated herein by this reference.
|
(34)
|
Filed as Exhibit 4a(30) with Annual Report on Form 10-K for the year ended December 31, 2009, File No. 001-00973, on February 25, 2010 and incorporated herein by this reference.
|
(35)
|
Filed as Exhibit 4a(32) with Annual Report on Form 10-K for the year ended December 31, 2012, File No. 001-00973, on February 26, 2013, and incorporated herein by this reference.
|
(36)
|
Filed as Exhibit 4 with Quarterly Report on Form 10-Q for the quarter ended June 30, 2013, File No. 001-00973, on July 30, 2013, and incorporated herein by this reference.
|
(37)
|
Filed as Exhibit 4a(22) with Quarterly Report on Form 10-Q for the quarter ended September 30, 2014, File No. 001-09120, on October 30, 2014 and incorporated herein by this reference.
|
(38)
|
Filed as Exhibit 4a(23) with Quarterly Report on Form 10-Q for the quarter ended June 30, 2015, File No. 001-09120, on July 31, 2015 and incorporated herein by this reference.
|
(39)
|
Filed as Exhibit 4a(14) with Annual Report on Form 10-K for the year ended December 31, 2016, File No. 001-00973, on February 27, 2017 and incorporated herein by this reference.
|
(40)
|
Filed as Exhibit 4a(15) with Quarterly Report on Form 10-Q for the quarter ended March 31, 2018, File No. 001-00973, on April 30, 2018 and incorporated herein by this reference.
|
(41)
|
Filed as Exhibit 4 with Current Report on Form 8-K, File No. 001-00973, on December 1, 1993 and incorporated herein by this reference.
|
(42)
|
Filed as Exhibit 4-6 to Registration Statement on Form S-3, File No. 333-76020, filed on December 27, 2001 and incorporated herein by this reference.
|
(43)
|
Filed as Exhibit 10.2 with Current Report on Form 8-K, File No. 001-00973, on February 19, 2009 and incorporated herein by this reference.
|
(44)
|
Filed as Exhibit 3.1 to Registration Statement on Form S-4, No. 333-69228, filed on September 10, 2001 and incorporated herein by this reference.
|
(45)
|
Filed as Exhibit 3.2 to Registration Statement on Form S-4, No. 333-69228, filed on September 10, 2001 and incorporated herein by this reference.
|
(46)
|
Filed as Exhibit 4.1 to Registration Statement on Form S-4, No. 333-69228, filed on September 10, 2001 and incorporated herein by this reference.
|
(47)
|
Filed as Exhibit 4.7 with Quarterly Report on Form 10-Q for the quarter ended March 31, 2002, File No. 000-49614, on May 15, 2002 and incorporated herein by this reference.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Column A
|
|
Column B
|
|
Column C Additions
|
|
Column D
|
|
|
|
Column E
|
|
||||||||||||
|
Description
|
|
Balance at
Beginning of
Period
|
|
Charged to
cost and
expenses
|
|
Charged to
other
accounts-
describe
|
|
Deductions-
describe
|
|
|
|
Balance at
End of
Period
|
|
||||||||||
|
|
|
Millions
|
|
||||||||||||||||||||
|
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Allowance for Doubtful Accounts
|
|
$
|
59
|
|
|
$
|
91
|
|
|
$
|
—
|
|
|
$
|
87
|
|
|
(A)
|
|
$
|
63
|
|
|
|
Materials and Supplies Valuation Reserve
|
|
7
|
|
|
4
|
|
|
—
|
|
|
2
|
|
|
(B)
|
|
9
|
|
|
|||||
|
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Allowance for Doubtful Accounts
|
|
$
|
68
|
|
|
$
|
76
|
|
|
$
|
—
|
|
|
$
|
85
|
|
|
(A)
|
|
$
|
59
|
|
|
|
Materials and Supplies Valuation Reserve
|
|
37
|
|
|
2
|
|
|
—
|
|
|
32
|
|
|
(C)
|
|
7
|
|
|
|||||
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Allowance for Doubtful Accounts
|
|
$
|
67
|
|
|
$
|
85
|
|
|
$
|
—
|
|
|
$
|
84
|
|
|
(A)
|
|
$
|
68
|
|
|
|
Materials and Supplies Valuation Reserve
|
|
11
|
|
|
32
|
|
|
—
|
|
|
6
|
|
|
(B)
|
|
37
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(A)
|
Accounts Receivable written off.
|
(B)
|
Reduce reserve to appropriate level and to remove obsolete inventory.
|
(C)
|
Hudson and Mercer inventory written off.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Column A
|
|
Column B
|
|
Column C Additions
|
|
Column D
|
|
|
|
Column E
|
|
||||||||||||
|
Description
|
|
Balance at
Beginning
of Period
|
|
Charged to
cost and
expenses
|
|
Charged to
other
accounts-
describe
|
|
Deductions-
describe
|
|
|
|
Balance at
End of
Period
|
|
||||||||||
|
|
|
Millions
|
|
||||||||||||||||||||
|
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Allowance for Doubtful Accounts
|
|
$
|
59
|
|
|
$
|
91
|
|
|
$
|
—
|
|
|
$
|
87
|
|
|
(A)
|
|
$
|
63
|
|
|
|
Materials and Supplies Valuation Reserve
|
|
—
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
|
|
2
|
|
|
|||||
|
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Allowance for Doubtful Accounts
|
|
$
|
68
|
|
|
$
|
76
|
|
|
$
|
—
|
|
|
$
|
85
|
|
|
(A)
|
|
$
|
59
|
|
|
|
Materials and Supplies Valuation Reserve
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
—
|
|
|
|||||
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Allowance for Doubtful Accounts
|
|
$
|
67
|
|
|
$
|
85
|
|
|
$
|
—
|
|
|
$
|
84
|
|
|
(A)
|
|
$
|
68
|
|
|
|
Materials and Supplies Valuation Reserve
|
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
(B)
|
|
—
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(A)
|
Accounts Receivable written off.
|
(B)
|
Reduce reserve to appropriate level and to remove obsolete inventory.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Column A
|
|
Column B
|
|
Column C Additions
|
|
Column D
|
|
|
|
Column E
|
|
||||||||||||
|
Description
|
|
Balance at
Beginning
of Period
|
|
Charged to
cost and
expenses
|
|
Charged to
other
accounts-
describe
|
|
Deductions-
describe
|
|
|
|
Balance at
End of
Period
|
|
||||||||||
|
|
|
|
|
|
|
Millions
|
|
|
|
|
|
|
|
||||||||||
|
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Materials and Supplies Valuation Reserve
|
|
$
|
7
|
|
|
$
|
2
|
|
|
$
|
—
|
|
|
$
|
2
|
|
|
(A)
|
|
$
|
7
|
|
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Materials and Supplies Valuation Reserve
|
|
$
|
37
|
|
|
$
|
2
|
|
|
$
|
—
|
|
|
$
|
32
|
|
|
(B)
|
|
$
|
7
|
|
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Materials and Supplies Valuation Reserve
|
|
$
|
10
|
|
|
$
|
32
|
|
|
$
|
—
|
|
|
$
|
5
|
|
|
(A)
|
|
$
|
37
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(A)
|
Reduce reserve to appropriate level and to remove obsolete inventory.
|
(B)
|
Hudson and Mercer inventory written off.
|
|
|
|
|
|
|
|
P
UBLIC
S
ERVICE
E
NTERPRISE
G
ROUP
I
NCORPORATED
|
|
|
|
|
|
|
By:
|
/s/ R
ALPH
I
ZZO
|
|
|
|
Ralph Izzo
|
|
|
|
Chairman of the Board, President and
|
|
|
|
Chief Executive Officer
|
|
|
|
|
|
Signature
|
|
Title
|
|
Date
|
|
|
|
||
/s/ R
ALPH
I
ZZO
|
|
Chairman of the Board, President, Chief Executive Officer and
|
|
February 27, 2019
|
Ralph Izzo
|
|
Director (Principal Executive Officer)
|
|
|
|
|
|
||
/s/ D
ANIEL
J. C
REGG
|
|
Executive Vice President and Chief Financial Officer
|
|
February 27, 2019
|
Daniel J. Cregg
|
|
(Principal Financial Officer)
|
|
|
|
|
|
||
/s/ S
TUART
J. B
LACK
|
|
Vice President and Controller
|
|
February 27, 2019
|
Stuart J. Black
|
|
(Principal Accounting Officer)
|
|
|
|
|
|
||
/s/ W
ILLIE
A. D
EESE
|
|
Director
|
|
February 27, 2019
|
Willie A. Deese
|
|
|
|
|
|
|
|
|
|
/s/ W
ILLIAM
V. H
ICKEY
|
|
Director
|
|
February 27, 2019
|
William V. Hickey
|
|
|
|
|
|
|
|
||
/s/ S
HIRLEY
A
NN
J
ACKSON
|
|
Director
|
|
February 27, 2019
|
Shirley Ann Jackson
|
|
|
|
|
|
|
|
||
/s/ D
AVID
L
ILLEY
|
|
Director
|
|
February 27, 2019
|
David Lilley
|
|
|
|
|
|
|
|
|
|
/s/ B
ARRY
H
.
O
STROWSKY
|
|
Director
|
|
February 27, 2019
|
Barry H. Ostrowsky
|
|
|
|
|
|
|
|
||
/s/ T
HOMAS
A. R
ENYI
|
|
Director
|
|
February 27, 2019
|
Thomas A. Renyi
|
|
|
|
|
|
|
|
||
/s/ L
AURA
A. S
UGG
|
|
Director
|
|
February 27, 2019
|
Laura A. Sugg
|
|
|
|
|
|
|
|
||
/s/ R
ICHARD
J. S
WIFT
|
|
Director
|
|
February 27, 2019
|
Richard J. Swift
|
|
|
|
|
|
|
|
|
|
/s/ S
USAN
T
OMASKY
|
|
Director
|
|
February 27, 2019
|
Susan Tomasky
|
|
|
|
|
|
|
|
|
|
/s/ A
LFRED
W. Z
OLLAR
|
|
Director
|
|
February 27, 2019
|
Alfred W. Zollar
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
P
UBLIC
S
ERVICE
E
LECTRIC
AND
G
AS
C
OMPANY
|
|
|
|
|
|
|
By:
|
/s/ DAVID M. DALY
|
|
|
|
David M. Daly
|
|
|
|
President and Chief Operating Officer
|
|
|
|
|
|
Signature
|
|
Title
|
|
Date
|
|
|
|
||
/s/ R
ALPH
I
ZZO
|
|
Chairman of the Board and Chief Executive Officer and
|
|
February 27, 2019
|
Ralph Izzo
|
|
Director (Principal Executive Officer)
|
|
|
|
|
|
||
/s/ D
ANIEL
J. C
REGG
|
|
Executive Vice President and Chief Financial Officer
|
|
February 27, 2019
|
Daniel J. Cregg
|
|
(Principal Financial Officer)
|
|
|
|
|
|
||
/s/ S
TUART
J. B
LACK
|
|
Vice President and Controller
|
|
February 27, 2019
|
Stuart J. Black
|
|
(Principal Accounting Officer)
|
|
|
|
|
|
||
/s/ W
ILLIAM
V. H
ICKEY
|
|
Director
|
|
February 27, 2019
|
William V. Hickey
|
|
|
|
|
|
|
|
|
|
/s/ S
HIRLEY
A
NN
J
ACKSON
|
|
Director
|
|
February 27, 2019
|
Shirley Ann Jackson
|
|
|
|
|
|
|
|
|
|
/s/ R
ICHARD
J. S
WIFT
|
|
Director
|
|
February 27, 2019
|
Richard J. Swift
|
|
|
|
|
|
|
|
|
|
|
|
PSEG P
OWER
LLC
|
|
|
|
|
|
|
By:
|
/s/ R
ALPH
A. L
A
R
OSSA
|
|
|
|
Ralph A. LaRossa
|
|
|
|
President and Chief Operating Officer
|
|
|
|
|
|
|
|
|
|
Signature
|
|
Title
|
|
Date
|
|
|
|
||
/s/ R
ALPH
I
ZZO
|
|
Chairman of the Board and Chief Executive Officer and
|
|
February 27, 2019
|
Ralph Izzo
|
|
Director (Principal Executive Officer)
|
|
|
|
|
|
||
/s/ D
ANIEL
J. C
REGG
|
|
Executive Vice President and Chief Financial Officer and
|
|
February 27, 2019
|
Daniel J. Cregg
|
|
Director (Principal Financial Officer)
|
|
|
|
|
|
||
/s/ S
TUART
J. B
LACK
|
|
Vice President and Controller
|
|
February 27, 2019
|
Stuart J. Black
|
|
(Principal Accounting Officer)
|
|
|
|
|
|
||
/s/ D
EREK
M. D
I
R
ISIO
|
|
Director
|
|
February 27, 2019
|
Derek M. DiRisio
|
|
|
|
|
|
|
|
||
/s/ R
ALPH
A. L
A
R
OSSA
|
|
Director
|
|
February 27, 2019
|
Ralph A. LaRossa
|
|
|
|
|
|
|
|
|
|
/s/ T
AMARA
L. L
INDE
|
|
Director
|
|
February 27, 2019
|
Tamara L. Linde
|
|
|
|
|
|
|
|
|
|
/s/ M
ARGARET
M. P
EGO
|
|
Director
|
|
February 27, 2019
|
Margaret M. Pego
|
|
|
|
|
a)
|
Annual Meeting
: The Annual Meeting of Stockholders of the Company.
|
c)
|
Code
: The Internal Revenue Code of 1986, as amended.
|
d)
|
Committee
: Chief Executive Officer of the Company and two other officers appointed by the Chief Executive Officer.
|
e)
|
Common Stock
: The Common Stock without nominal or par value of the Company.
|
f)
|
Company
: Public Service Enterprise Group Incorporated, a corporation organized and existing under the laws of the State of New Jersey, or its successor or successors.
|
g)
|
Disability
: Any physical or mental condition of a permanent nature which, in sole reasonable judgment of the Committee, renders an Outside Director incapable of performing the duties of a member of the Board.
|
h)
|
Effective Date
: The original Effective Date of the Plan was upon approval by stockholders at the 2007 Annual Meeting of Stockholders. The Plan is being amended and restated effective January 1, 2019.
|
i)
|
Exchange Act
: The Securities and Exchange Act of 1934, as amended, or as it may be amended from time to time.
|
j)
|
NYSE
: The New York Stock Exchange, Inc.
|
k)
|
Outside Director
: A member of the Board on or after the Effective Date who never has been employed by the Company or any of its affiliates.
|
l)
|
Participant:
An Outside Director who receives a Stock Unit Award under this Plan.
|
m)
|
Plan
: This Public Service Enterprise Group Incorporated 2007 Equity Compensation Plan for Outside Directors, as it may be amended from time to time.
|
n)
|
Securities Act
: The Securities Act of 1933, as amended, or as it may be amended from time to time.
|
o)
|
Service
: A Director’s service as a member of the Board.
|
p)
|
Stock Unit Award
: An award, representing the right to receive shares of Common Stock upon termination of service as an Outside Director, subject to the provisions of Article IV hereof
|
q)
|
Year of Service
: The annual period commencing on May 1
st
of each year and ending at the earlier of the succeeding April 30
th
or the next Annual Meeting of Stockholders. For any person first elected as a member of the Board after May 1
st
of any year, his/her first Year of Service shall commence upon his/her election as an Outside Director and shall end at the earlier of the succeeding April 30
th
or the next Annual Meeting of Stockholders.
|
A.
|
Upon the commencement of each Year of Service as a member of the Board, each Outside Director shall be granted an award of Stock Units in an amount as shall
|
B.
|
The number of Stock Units to be awarded on any particular date of grant shall be equal to the amount of the award grant (expressed in dollars) divided by the closing price of the Common Stock on the NYSE on the date of grant as provided in Section IV.A, rounded up to the next whole share.
|
C.
|
If a Participant fails to complete the Year of Service with respect to which a Stock Unit Award has been granted, other than on account of Disability or death, such Stock Unit Award and any earnings thereon shall be prorated to reflect the portion of the Year of Service actually served by the Participant.
|
D.
|
No stock certificates shall be issued in connection with any Stock Unit Award and the Stock Unit Awards shall be evidenced by a bookkeeping account in the name of the Participant maintained by the Company. The Company shall not be required to segregate any amounts credited to these Stock Unit Award accounts, which shall be established merely as an accounting convenience. Amounts credited to the Stock Unit Award accounts shall at all times remain solely the property of the Company subject to the claims of its general creditors. Stock Unit Award accounts shall be credited with dividend equivalents at a rate equal to such dividends as may be declared by the Company on the Common Stock. Such dividends equivalents shall be deemed invested as additional Stock Units at a share price equal to closing price of the Common Stock on the NYSE on the date the transaction is credited.
|
E.
|
Until distribution of shares of Common Stock from the Plan, neither a Participant nor any other person shall have any right to commute, sell, assign, transfer, pledge, anticipate, mortgage or otherwise encumber, transfer, hypothecate, alienate or convey the amounts, if any, payable hereunder, or any part thereof, which are, and all rights to which are expressly declared to be, unassignable and non-transferable. No part of the amounts payable shall, prior to actual payment, be subject to seizure, attachment, garnishment or sequestration for the payment of any debts, judgments, alimony, property settlement or separate maintenance owed by a Participant or any other person, or be transferable by operation of law in the event of a Participant’s or any other person’s bankruptcy or insolvency.
|
F.
|
No Participant shall have any of the rights of a stockholder (including the right to vote and to receive dividends and other distributions (except as set forth in Section IV (D) and (G)) with respect to Stock Units unless and until shares of Common Stock are actually issued in his/her name.
|
G.
|
In the event of any stock dividend, stock split, combination or exchange of shares, merger, consolidation, spin-off or other distribution (other than normal cash dividends) of Company assets to shareholders, or any other change affecting the Common Stock, such adjustments, if any, as are appropriate to reflect such change shall be made with respect to outstanding Stock Unit Awards.
|
H.
|
Upon a Change in Control of the Company all outstanding Stock Unit Awards shall be considered as having met the requirements of Section IV.C. For the purposes of this Plan, “Change in Control” shall mean the occurrence of any of the following events:
|
a)
|
any “person” (within the meaning of Section 13(d) of the Exchange Act is or becomes the beneficial owner within the meaning of Rule 13d‑3 under the Exchange Act (a “Beneficial Owner”), directly or indirectly, of securities of the Company (not including in the securities beneficially owned by such person any securities acquired directly from the Company or its affiliates) representing 25% or more of the combined voting power of the Company’s then outstanding securities, excluding any person who becomes such a Beneficial Owner in connection with a transaction described in clause (1) of paragraph (c) below; or
|
b)
|
the following individuals cease for any reason to constitute 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, including but not limited to a consent solicitation. relating to the election of directors of the Company) whose appointment or election by the Board of Directors or nomination for election by the Company’s stockholders was approved or recommended
|
c)
|
there is consummated a merger or consolidation of the Company or any direct or indirect wholly owned subsidiary of the Company with any other corporation other than (1) a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior to such merger or consolidation 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 the Company or any subsidiary of the Company, at least 75% of the combined voting power of the securities of the Company or such surviving entity or any parent thereof outstanding immediately after such merger or consolidation, or (2) a merger or consolidation effected to implement a recapitalization of the Company (or similar transaction) in which no person is or becomes the Beneficial Owner, directly or indirectly, of securities of the Company representing 25% or more of the combined voting power of the Company’s then outstanding securities; or
|
d)
|
the stockholders of the Company approve a plan of complete liquidation or dissolution of the Company or there is consummated an agreement for the sale or disposition by the Company of all or substantially all of the Company’s assets, other than a sale or disposition by the Company of all or substantially all of the Company’s assets to an entity, at least 75% of the combined voting power of the voting securities of which are owned by stockholders of the Company in substantially the same proportions as their ownership of the Company immediately prior to such sale.
|
A.
|
Upon the termination of a Participant’s service as an Outside Director, or as of such later date as is elected by the Participant under Section V.B., the Company shall issue to the Participant certificates for shares of Common Stock equal to the number of whole Stock Units in his/her account without any legend or restriction of any kind in accordance with such Participant’s distribution elections hereunder.
|
B.
|
By written notice to the Plan filed with the Company’s Secretary, a Participant may elect to have distribution of his/her Stock Unit Award account commence: (1) on the 30
th
day following the date of termination of the Participant’s Service, (2) on the 15
th
day of January next following the date of termination of the Participant’s Service or (3) on the 15
th
day of January of any calendar year following termination of the Participant’s Service, but not later than the January following the Participant’s 72
nd
birthday, unless the Participant is still a Director at such time, in which case distribution shall commence on the 30
th
day following the date the Participant ceases to be a Director. Any such election, or any change in such election (by written notice to the Secretary of the Company), shall apply only to future awards. In the event no election is made as to the commencement of distribution, such distribution shall commence on the 30
th
day following the date the Participant ceases to be a Director of the Company.
|
C.
|
By written notice to the Plan filed with the Company’s Secretary, a Participant may elect to receive the distribution of his/her Stock Unit Award account in the form of (1) one lump‑sum payment, or (2) annual distributions over a period selected by the Participant of up to ten years. In the event a lump‑sum payment is made under the Plan, the amount then standing to the Participant’s credit in his/ her Stock Unit Award account shall be paid to the Participant on the date determined under Section V.B. In the case of a distribution over a period of years, the Company shall pay to the Participant, commencing on the date determined under Section V.B, annual installments from the amount then standing to his or her credit in his or her Stock Unit Award account, including earnings credits on the unpaid balance to the date of distribution. The amount of each installment shall be determined by dividing the then unpaid balance, plus earnings credits, in the Participant’s Stock Unit Award account by the number of installments remaining to be paid. If a Participant does not make an election as to the manner of distribution of his or her Stock Unit Award account, such distribution shall be made in the form of a lump sum.
|
D.
|
In the event of a Participant’s death, the balance of the Participant’s Stock Unit Award account shall be distributed to the Participant’s Beneficiary(ies) in a lump‑sum payment within 30 days following the Participant’s death. A Participant may change Beneficiary designations by filing a subsequent notice with the Secretary of the Company. If a Participant does not make a Beneficiary designation, or if the Beneficiary has predeceased the Participant, such distribution shall be made as a lump‑sum to his/her estate.
|
E.
|
Participants may, (i) by notice filed with the Company prior to December 31
st
of any year, make changes of distribution elections on a prospective basis with respect to future grants of Stock Unit Awards; and (ii) by notice filed with the Company, make changes of distribution elections with respect to prior deferred compensation as long as (A) any such new distribution election is made at least one year prior to the date that the commencement of the distribution would otherwise have occurred and (B) the revised commencement date is at least five years later than the date that the commencement of the distribution would otherwise have occurred (and with respect to Stock Unit Awards granted before January 1, 2012, such an election may not defer payment beyond the later of the January following the Participant’s 72
nd
birthday or the Participant’s termination of service as a director). For the purposes of this subsection V.E, with respect to Stock Unit Awards granted before January 1, 2012, if a Participant has elected a distribution in installments, each installment shall be deemed a separate election. With respect to Stock Unit Awards granted on and after January 1, 2012, if a Participant has elected a distribution in installments, installment payments shall be treated as one payment.
|
F.
|
Notwithstanding any other provision of the Plan, if the Board, by vote of the
|
G.
|
Distribution in Case of Certain Tax Events
- If, with respect to any Participant, the Plan fails to meet the requirements of the Code with respect to the deferral of tax liability, the Company may accelerate distribution from a Participant’s Account amounts sufficient to meet such Participant’s resulting Federal, State, Local and/or Foreign tax liability (including any interest and penalties).
|
A.
|
Unless the shares of Common Stock to be distributed pursuant to the Plan have been registered with the Securities and Exchange Commission under the Securities Act prior to issuance, the Participant receiving such shares must represent in writing to the Company that such shares of Common Stock are being acquired for investment purposes only and not with a view towards the further resale or distribution thereof and must supply to the Company such other documentation as may be required by the Company, unless in the opinion of counsel to the Company such representation, agreement or documentation is not necessary to comply with the Securities Act.
|
B.
|
The Company shall not be obligated to deliver any shares of Common Stock until they have been listed on each securities exchange on which the shares of Common Stock may then be listed or until there has been qualification under or compliance with such state or federal laws, rules or regulations as the Company may deem applicable. The Company shall use reasonable efforts to obtain such listing, qualification and compliance.
|
C.
|
The Committee may make such provisions and take such steps as it may deem necessary or appropriate for the withholding of any taxes that the Company is required by any law or regulation of any governmental authority, whether federal, state or local, domestic or foreign, to withhold in connection with the award of Stock Units or the distribution of any Common Stock, including, but not limited to (i) the withholding of delivery of certificates for shares of Common Stock until the Participant reimburses the Company for the amount the Company is required to withhold with respect to such taxes, (ii) the canceling of any number of shares of Common Stock issuable in an amount sufficient to reimburse the Company for the amount it is required to so withhold or (iii) withholding the amount due from any such Participant’s other compensation.
|
A.
|
The costs and expenses of administering the Plan shall be borne by the Company and shall not be charged against any award or to any Outside Director receiving an award.
|
B.
|
This Plan and actions taken in connection herewith shall be governed and construed in accordance with the laws of the State of New Jersey.
|
C.
|
The captions and section numbers appearing in this Plan are inserted only as a matter of convenience. They do not define, limit or describe the scope or intent of the provisions of this Plan. In this Plan, words in the singular number include the plural and in the plural include the singular; and words of the masculine gender include the feminine and the neuter, and when the sense so indicates, words of the neuter gender may refer to any gender.
|
D.
|
Whenever the time for payment or performance hereunder shall fall on a weekend or public holiday, such payment or performance shall be deemed to be timely if made on the next succeeding business day.
|
(a)
|
An individual who serves as a Director and is not otherwise employed by the Company or any of its subsidiaries shall be eligible to participate in the Plan if he or she elects to have payment of his or her annual retainer, his or her fees or his or her annual retainer and fees in respect of a Plan Period deferred as provided herein.
|
(b)
|
All elections to defer must be made in the calendar year prior to the year that the services giving rise to the compensation are performed. The election shall be made by notice, in the manner prescribed by the Committee, prior to the first day of such Plan Period or, in the case of a Director who first becomes eligible during a Plan Period, not later than 30 days after they first becomes eligible. Except as otherwise provided herein, each such election shall be irrevocable.
|
(c)
|
Special One-Time Election to Rescind 2005 Deferrals
- Not later than December 30, 2005, Participants who had elected to defer compensation during 2005 may, by notice, in the manner prescribed by the Committee, rescind their election to defer 2005 compensation and such amounts shall be currently paid to the Participant.
|
(d)
|
Special One-Time Election to Change Distribution Elections with respect to 2005, 2006, 2007 or 2008 Deferrals
- Not later than December 31, 2008, Participants who had elected to defer compensation during 2005, 2006, 2007 or 2008 may, by
|
(a)
|
An account shall be established for each eligible electing Director (a "Participant") which shall be designated as their Deferred Compensation Account. If a Participant elects to have payment deferred of their annual retainer, the amount of the annual retainer payable to them with respect to a Plan Period shall be credited, in four equal installments on or about the last day of March, June, September and December in the Plan Period to which such retainer relates, to his or her Deferred Compensation Account, subject to the provisions of Section 5(c). If a Participant elects to have payment deferred of his or her fees, the amount of each fee payable to him or her for attendance at a meeting during a Plan Period shall be credited to his or her Deferred Compensation Account on or about the first business day following such meeting. The Company shall not be required to segregate any amounts credited to the Deferred Compensation Accounts, which shall be established merely as an accounting convenience. Amounts credited to the Deferred Compensation Accounts shall at all times remain solely the property of the Company subject to the claims of its general creditors.
|
(b)
|
A Director, except a Director not actively serving on the Board on April 1, 2000, may direct investment of his or her Account among the Investment Funds (hereinafter defined) (in the manner established by the Committee) in multiples of one percent; provided, however, that the Committee shall not be obligated to effectuate any such investment direction. The amounts credited to a Deferred Compensation Account shall accrue earnings credits as determined by the Investment Fund(s) selected by the Director. In the case of (i) Director not actively serving on the Board on April 1, 2000 and (ii) a Director who fails to provide a designation of Investment Funds, each such Director shall be deemed to have designated 100 percent of his or her Account to be invested in the Investment Fund that determines income accrual with reference to the prime commercial lending rate of JPMorgan Chase Bank (formerly, the Chase Manhattan Bank). Except with respect to an investment election related to (a) an election made within 30 days of April 1, 2000 and (b) any Investment Fund which is discontinued during a Plan Year, each of which shall be effective immediately. Effective July 1, 2011, the prime commercial lending rate of JPMorgan Chase Bank shall be capped at 120% applicable federal long-term rate.
|
(c)
|
Investment Fund ‑ the fund or funds selected by the Committee, or its delegate, from time to time, which shall serve as a means of measuring the increase or decrease of each Director's Account. The Committee may, in its discretion, add or
|
(d)
|
If, prior to the end of a Plan Period, a Participant becomes an employee of the Company or one of its subsidiaries or dies or ceases for any reason to be a Director, or if the effective date of participation by a Participant for any Plan Period shall be other than the first day thereof, he or she will be entitled to be credited with that proportion of the annual retainer for the full Plan Period which the number of days of his or her participation in the Plan during such Plan Period bears to the total number of days in such Plan Period.
|
(a)
|
Following termination of a Participant's service on the Board, the Company shall distribute his or her Deferred Compensation Account.
|
(b)
|
For 2011 and Prior Years Deferrals
.
|
(i)
|
By written notice to the Plan filed with the Company's Secretary, a Participant may elect to have distribution of his or her Deferred Compensation Account commence either (1) on the 30th day following the date of termination of the Participant's service on the Board, (2) on the 15
th
day of January next following the date of termination of the Participant's service on the Board or (3) on the 15
th
day of January of any calendar year following termination of the Participant's service on the Board, but not later than the January following the Participant's 71st birthday, unless the Participant is still a Director at such time, in which case distribution shall commence on the 30
th
day following the date the Participant ceases to be a Director. Any such election, or any change in such election (by such subsequent written notice to the Secretary of the Company), shall apply only to future deferrals. In the event no election is made as to the commencement of distribution, such distribution shall commence on the 30th day following the date the Participant ceases to be a Director of the Company.
|
(ii)
|
By written notice to the Plan filed with the Company's Secretary, a Participant may elect to receive the distribution of his or her Deferred Compensation Account in the form of (1) one lump‑sum payment, or (2) annual distributions over a period selected by the Participant of up to ten years. In the event a lump‑sum payment is made under the Plan, the amount then standing to the Participant's credit in his or her Deferred Compensation Account, including earnings credits provided in Section
|
(c)
|
For 2012 and Beyond Deferrals.
By written notice to the Plan filed with the Company's Secretary, a Participant may elect to have distribution of each year’s deferrals and associated earnings occur on the date or event specified in subsections (i) or (ii). With respect to compensation for years prior to 2019, a Participant’s distribution election shall apply to future years unless the Participant makes a subsequent election. With respect to compensation for 2019 and future years, a Participant’s distribution election for a given year shall not apply to future years.
|
(i)
|
For each year, a Participant, may elect to have distribution of that year’s deferrals, and associated earnings, made or commence within the 30-day period following the Participant’s termination of service on the Board. A Participant may elect to receive such distribution in the form of (A) one lump-sum payment, or (B) annual installments over a three to fifteen year period. In the case of a distribution over a period of years, the Company shall pay to the Participant on the date determined under this Section 6(c)(i) and on the yearly anniversaries of such date, annual installments of the unpaid balance of that year’s deferrals, including earnings on the unpaid balance at the rate provided in Section 5(b) of this Plan to the date of distribution. The amount of each installment shall be determined by multiplying the then unpaid balance of that year’s deferrals, plus accrued earnings, the numerator of which is one and the denominator of which is the number of annual installments remaining to be paid.
|
(ii)
|
For each year, a Participant, may elect to have distribution of that year’s deferrals and associated earnings be paid or commence on a date that is indicated by the Participant as a specified number of years and/or months following termination of service on the Board. Distribution shall be made or commence within the 30 day period following the date that the Participant elects. A Participant may elect to receive such distribution in the form of (A) one lump-sum payment, or (B) annual installments over a three to fifteen year period. In the case of a distribution over a period of
|
(iii)
|
If, with respect to any election to defer compensation for 2012 or any subsequent year up to 2018, a Participant fails to make a proper election with respect to the distribution of such deferred compensation, such amount will be distributed in accordance with the prior year’s election (but not any election in place for a year prior to 2012). In the event that no valid election is on file, such amount will be distributed in a lump sum on the date specified in Section 6(c)(i). With respect to any election to defer compensation for 2019 or any subsequent year, in the event a Participant fails to make a proper election regarding distribution of such deferred compensation, such amount will be distributed in a lump sum on the date specified in Section 6(c)(i).
|
(d)
|
The payment of all distributions shall be made cash.
|
(e)
|
Distribution upon Death.
|
(i)
|
For 2011 and Prior Years Deferrals
. In the event of a Participant's death, the balance of the Participant's Deferred Compensation Account shall be distributed to the Participant's Beneficiary(ies) in annual installments over a period of not more than five years, in accordance with the Participant’s election on file. Any change in the period over which such payments are made shall only apply to future deferrals. Such distribution shall be made in a manner consistent with Section 6(c) of the Plan and shall commence on the 30th day following the Participant's death. Additional annual payments for distributions made over a period of more than one year shall be made on the yearly anniversaries of such date. In the event of a Participant's death after distribution of this Deferred Compensation Account has commenced, any election under this Section 6(d) shall not extend the time of payment of his or her Deferred Compensation Account beyond the time when distribution would have been completed if the Participant had lived. A Participant may change Beneficiary designations . If a Participant does not make an election as to the manner of distribution of his or her Deferred Compensation Account in the event of his or her death, any such distribution shall be made as a lump‑sum payment to his or her estate on the 30th day following the Participant's death.
|
(ii)
|
For 2012 and Beyond Deferrals
. In the event of a Participant’s death prior to the date that the Participant commences payment of a year’s deferrals and associated earnings, such amount shall be distributed to the Participant’s Beneficiary(ies) in a lump sum within 90 days following the Participant’s death.
|
(f)
|
Participants may:
|
(i)
|
By notice made prior to December 31
st
of any year, make changes of distribution elections on a prospective basis;
|
(ii)
|
By notice, make changes of distribution elections with respect to prior deferred compensation as long (A) any such new distribution election is made at least one year prior to the date that the commencement of the distribution would otherwise have occurred and (B) the revised commencement date is at least five years later than the date that the commencement of the distribution would otherwise have occurred (with respect to 2012 and beyond deferrals, installment payments shall be treated as one payment);
|
(iii)
|
Special One-Time Election
- by notice made prior to December 31, 2005, make a one-time election to change any distribution election previously made with respect to compensation deferred on or before December 31, 2005; or
|
(iv)
|
Special One-Time Election - Participants may, by noticemade prior to December 31, 2008, make a one-time election to change any distribution election previously made with respect to compensation deferred during 2005, 2006, 2007 or 2008.
|
(g)
|
Notwithstanding any other provision of the Plan, if the Committee shall determine in its sole discretion that the time of payment of a Participant's Deferred Compensation Account should be advanced because of protracted illness or other
|
(h)
|
Distribution in Case of Certain Tax Events
- If, with respect to any Participant, the Plan fails to meet the requirements of the Internal Revenue Code with respect to the deferral of tax liability, the Company may accelerate distribution from a Participant’s Account amounts sufficient to meet such Participant’s resulting Federal, State, Local and/or Foreign tax liability (including any interest and penalties).
|
(a)
|
The Board may terminate the Plan at any time so that no further amounts shall be credited to Deferred Compensation Accounts or may, from time to time, amend the Plan, without the consent of Participants or Beneficiaries; provided, however, that no such amendment or termination shall impair any rights, including rights to income credits pursuant to Section 5(b) hereof, which have accrued under the Plan without the consent of the Participant or Beneficiary, or the legal representative of such person, so affected.
|
(b)
|
Notwithstanding any other provision of this Plan, upon the occurrence of a Change in Control (as defined below), the income credit calculated pursuant to Section 5(b) hereof may not be reduced below the prime commercial lending rate described therein.
|
(i)
|
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 l3d‑3 under the Act (a "Beneficial Owner"), directly or indirectly, of securities of the Corporation (not including in the securities beneficially owned by such person any securities acquired directly from the Corporation or its
|
(ii)
|
the following individuals cease for any reason to constitute 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, including but not limited to a consent solicitation, relating to the election of directors of the Corporation) whose appointment or election by the Board of Directors or nomination for election by the Corporation'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 nomination for election was previously so approved or recommended; or
|
(iii)
|
there is consummated a merger or consolidation of the Corporation or any direct or indirect wholly owned subsidiary of the Corporation with any other corporation, other than (1) a merger or consolidation which would result in the voting securities of the Corporation outstanding immediately prior to such merger or consolidation 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 the Corporation or any subsidiary of the Corporation, at least 75% of the combined voting power of the securities of the Corporation or such surviving entity or any parent thereof outstanding immediately after such merger or consolidation, or (2) a merger or consolidation effected to implement a recapitalization of the Corporation (or similar transaction) in which no person is or becomes the Beneficial Owner, directly or indirectly, of securities of the Corporation representing 25% or more of the combined voting power of the Corporation's then outstanding securities; or
|
(iv)
|
the stockholders of the Corporation approve a plan of complete liquidation or dissolution of the Corporation or there is consummated an agreement for the sale or disposition by the Corporation of all or substantially all of the Corporation's assets, other than a sale or disposition by the Corporation of all or substantially all of the Corporation's assets to an entity, at least 75% of the combined voting power of the voting securities of which are owned by stockholders of the Corporation in substantially the same proportions as their ownership of the Corporation immediately prior to such sale.
|
(a)
|
“Account” - the Deferred Compensation Account described in Paragraph 4 of this Plan.
|
(b)
|
“
Affiliate
”
- any organization which is a member of a controlled group of corporations (as defined in Code section 414(b), as modified by Code section 415(h)) which includes the Company; or any trades or businesses (whether or not incorporated) which are under common control (as defined in Code section 414(c), as modified by Code section 415(h)) with the Company; or a member of an affiliated service group (as defined in Code section 414(m)) which includes the Company or any other entity required to be aggregated with the Company pursuant to regulations under Code section 414(o). The term affiliate shall also include such entities which shall be specifically designated by the Committee.
|
(c)
|
“Assets” - all Compensation and interest that have been credited to a Participant’s Account in accordance with Paragraph 5 of this Plan.
|
(d)
|
“Beneficiary” - the individual(s) and/or entity(ies) designated and defined by the Plan.
|
(e)
|
“Change in Control” - the occurrence of any of the following events:
|
(i)
|
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 indirectly, of securities of the Company (not including in the securities beneficially owned by such person any securities acquired directly from the Company or its affiliates) representing 25% or more of the combined voting power of the Company’s then outstanding securities, excluding any person who becomes such a Beneficial Owner in connection with a transaction described in clause (A) of subparagraph (iii) below; or
|
(ii)
|
the following individuals cease for any reason to constitute a majority of the number of directors then serving: individuals who, on December 15, 1998, constitute the board of directors of the Company (“Board”) and any new director (other than a director whose initial assumption of office is in connection with an actual or threatened election contest, including but not limited to a consent solicitation, relating to the election of directors of the Company) whose appointment or election by the Board or nomination for election by the Company’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 nomination for election was previously so approved or recommended; or
|
(iii)
|
there is consummated a merger or consolidation of the Company or any direct or indirect wholly owned subsidiary of the Company with any other corporation, other than (1) a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior to such merger or consolidation 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 the Company or any subsidiary of the Company, at least 75% of the combined voting power of the securities of the Company or such surviving entity or any parent thereof outstanding immediately after such merger or
|
(iv)
|
the stockholders of the Company approve a plan of complete liquidation or dissolution of the Company or there is consummated an agreement for the sale or disposition by the Company of all or substantially all of the Company’s assets, other than a sale or disposition by the Company of all or substantially all of the Company’s assets to an entity, at least 75% of the combined voting power of the voting securities of which are owned by stockholders of the Company in substantially the same proportions as their ownership of the Company immediately prior to such sale.
|
(v)
|
Notwithstanding the foregoing subparagraphs (i), (ii), (iii) and (iv), a “Change in Control” shall not be deemed to have occurred by virtue of the consummation of any transaction or series of integrated transactions immediately following which the record holders of the common stock of the Company immediately prior to such transaction or series of transactions continue to have substantially the same proportionate ownership in an entity which owns all or substantially all of the assets of the Company immediately following such transaction or series of transactions.
|
(f)
|
“Code” - the Internal Revenue Code of 1986, as amended. A reference to a section of the Code shall also refer to any regulations and other guidance issued under that section.
|
(g)
|
“Committee” - the Employee Benefits Policy Committee of the Company.
|
(h)
|
“Company” - Public Service Enterprise Group Incorporated.
|
(i)
|
“Compensation” - the total remuneration paid to a Participant for services rendered to the Company or a Participating Affiliate, excluding the Company’s or Participating Affiliate’s cost for any public or private employee benefit plan, including this Plan, but including all elective contributions that are made by the Company or Participating Affiliate under Internal Revenue Code Sections 125 or 401(k). Compensation deferrable under this Plan shall specifically include any and all amounts
|
(j)
|
“Deferred Compensation” - the amount of Compensation deferred pursuant to Paragraph 4 of this Plan.
|
(k)
|
“Disability” - a Participant will be considered disabled if they meet one of the following requirements: (i) they are unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that can be expected to result in death or to last for a continuous period of not less than 12 months; or (ii) they are, by reason of any medically determinable physical or mental impairment that can be expected to result in death or to last for a continuous period of not less than 12 months, receiving income replacement benefits for a period of not less than 3 months under a Company or Affiliate sponsored plan.
|
(l)
|
“Employer” - the Company and any Participating Affiliate.
|
(m)
|
“
ERISA
”
- The Employee Retirement Income Security Act of 1974, as amended. A reference to a section of ERISA shall also refer to any regulations and other guidance issued under that section.
|
(n)
|
“ERISA Affiliate” - (a) any organization while it is a member of a controlled group of corporations (as defined in Code Section 414(b)) which includes the Company; or (b) any trades or businesses (whether or not incorporated) while they are under common control (as defined in Code Section 414(c)) with the Company.
|
(o)
|
“Investment Fund” - the fund or funds selected by the Company’s Thrift and Pension Investment Committee (“TPIC”) from time to time which shall serve as a means of measuring the increase or decrease of each Participant’s Account. The TPIC may, in its discretion, add or discontinue any Investment Fund available under the Plan. The TPIC shall cause to provide each affected Participant with the opportunity, without limiting or otherwise impairing any other right of such Participant regarding changes in investment directions, to redirect the allocation of their Account invested in any discontinued Investment Fund among the other Investment Funds available under the Plan, including any replacement investment vehicle.
|
(p)
|
“Participant” - each employee of the Company or any Participating Affiliate as may be designated by the Chief Executive Officer of the Company.
|
(q)
|
“Participating Affiliate” - any Affiliate of the Company which (a) adopts this Plan with the approval of the Company; (b) authorizes the Board of Directors and the Committee to act for it in all matters arising under or with respect to this Plan; and (c) complies with such other terms and conditions relating to this Plan as may be imposed by the Company.
|
(r)
|
“Plan” - the Deferred Compensation Plan for Certain Employees of Public Service Enterprise Group Incorporated and its Affiliates (formerly known as the Deferred Compensation Plan for Certain Employees of Public Service Electric and Gas Company).
|
(s)
|
“Separation from Service” - Subject to paragraphs (i) and (ii), a Participant’s termination from employment with the Company and all ERISA Affiliates, whether by retirement or resignation from or discharge by the Company or an ERISA Affiliate.
|
(i)
|
A Separation from Service shall be deemed to have occurred if a Participant and the Company or any ERISA Affiliate reasonably anticipate, based on the facts and circumstances, that either:
|
(A)
|
the Participant will not provide any additional services for the Company or an ERISA Affiliate after a certain date; or
|
(B)
|
the level of bona fide services performed by the Participant after a certain date will permanently decrease to no more than 50% of the average level of bona fide services performed by the Participant over the immediately preceding 36 months.
|
(ii)
|
If a Participant is absent from employment due to military leave, sick leave, or any other bona fide leave of absence authorized by the Company or an Affiliate and there is a reasonable expectation that the Participant will return to perform services for the Company or an ERISA Affiliate, a Separation from Service will not occur until the latter of:
|
(A)
|
the first date immediately following the date that is six months after the date that the Participant was first absent from employment; or
|
(B)
|
the date the Participant no longer retains a right to reemployment, to the extent the Participant retains a right to reemployment with the Company or any ERISA Affiliates under applicable law or by contract.
|
(t)
|
“Specified Employee” - An individual who is a key employee (as defined in Code Section 416(i) without regard to Code Section 416(i)(5)) of the Company at any time during the 12-month period ending on each December 31 (the “identification date”). If an individual is a key employee as of an identification date, the individual shall be treated as a Specified Employee for the 12-month period beginning on the April 1 following the identification date. Notwithstanding the foregoing, an individual shall not be treated as a Specified Employee unless any stock of the Company or an ERISA Affiliate is publicly traded on an established securities market or otherwise.
|
(a)
|
Timing of Elections
- Any election to defer must be made in the manner prescribed by the Committee or its designee. All elections to defer must be made in the calendar year prior to the year that the services giving rise to the compensation are performed. Provided, however, that elections to defer performance-based compensation may be made up to the date that is six-months before the end of the related performance period, as long as a) the performance period is at least 12 months in length, b) the Participant performed services continuously from the date the performance criteria were established through the date the deferral election is made and c) at the time the deferral election is made, the performance-based compensation is not both i) substantially certain to be paid and ii) readily ascertainable. A Participant may change (in the manner prescribed by the Committee), not later than the date than the last date that an election to defer may be made, the amount of Compensation to be deferred by them with respect to the next succeeding calendar year or performance period.
|
(b)
|
Special One-Time Election to Rescind 2005 Deferrals
- Not later than December 14, 2005, Participants who had elected to defer compensation during 2005 may, by written notice, the form of which shall be designated and published by the Committee, rescind their election to defer 2005 compensation and such amounts shall be currently paid to the Participant.
|
(c)
|
Special One-Time Election to Change Distribution Elections with respect to 2005, 2006, 2007 or 2008 Deferrals
- Not later than December 31, 2008, Participants who had elected to defer compensation during 2005, 2006, 2007 or 2008 may, by written notice in a form approved by the Committee, elect to change the distribution elections with respect to any such deferrals.
|
(d)
|
Deferral Elections with Respect to 2012 - 2018 Deferrals - A Participant’s 2011 deferral election shall not carryover to 2012. A Participant who wishes to defer for 2012 must make a deferral election. If no election is made, the Participant shall be deemed to have elected not to defer for 2012. A Participant’s election to defer for 2012 or a later year shall carryover to future years unless the Participant makes a change for the next succeeding year.
|
(e)
|
Deferral Elections with Respect to 2019 and Future Years - A Participant’s 2018 deferral election shall not carryover to 2019. A Participant who wishes to defer for 2019 or a later year must make an affirmative deferral election. If no election is made, the Participant shall be deemed to have elected not to defer for that particular year. A Participant’s election to defer for one year shall not carryover to the subsequent year.
|
5.
|
HOW THE ACCOUNT IS TO BE MAINTAINED
.
|
(a)
|
Establishment of Account
- The Committee shall cause to be established an Account for each Participant who elects to participate in the Plan. Each Participant’s Account shall be credited with an amount equal to the Deferred Compensation which would have otherwise been payable to them.
|
(b)
|
Earnings Credits on Assets in the Account
- Each Participant, except Participants whose active employment with an Employer terminated prior to January 1, 2000, may direct investment of their Account among the
|
(c)
|
Title to and Beneficial Ownership of Assets
- The Plan shall be unfunded. The Company shall not be required to segregate any amounts credited to any Participant’s Account, which shall be established merely as an accounting convenience. Title to and beneficial ownership of any Assets, whether Deferred Compensation or earnings credited to a Participant’s Account pursuant to Subparagraphs 5(a) and (b) hereof, shall at all times remain in the Company, and no Participant nor Beneficiary shall have any interest whatsoever in any specific assets of the Company. All Assets shall at all times remain solely the property of the Company subject to the claims of its general creditors.
|
(a)
|
Election as to the Commencement and Timing of the Distribution of 2011 and Prior Year Deferrals.
|
(i)
|
Commencement - By election on the form designated by and filed with the Committee at the same time they elect to defer compensation under Paragraph 4, a Participant, may elect to have distribution from their account commence (i) on the thirtieth day after the date they cease to be employed by an Employer or, in the alternative, (ii) on January 15
th
of any calendar year following Separation from Service elected by the Participant, but in any event no later than the latter of (A) the January of the year following the year of the Participant’s 70th birthday or (B) the January following Separation from Service or (iii) pursuant to the terms of any written employment agreement applicable to the Participant. Notwithstanding the forgoing, however, for any
|
(ii)
|
Timing
- By election on the form designated by and filed with the Committee at the same time they elect to defer compensation under Paragraph 4, a Participant may elect to receive the distribution of their Account in the form of (A) one lump-sum payment, (B) annual distributions over a five-year period or (C) annual distributions over a 10-year period. A Participant may change such election by filing a subsequent election form, but any such change shall apply only to future deferrals. In the event a lump-sum payment is made under this Plan, the Assets credited to a Participant’s Account, including earnings at the rate provided in Subparagraph 5(b) of this Plan to the date of distribution, shall be paid to the Participant on the date determined under Subparagraph 6(a) of this Plan. In the case of a distribution over a period of years, the Company shall pay to the Participant on the date determined under Subparagraph 6(a) of this Plan and on the yearly anniversaries of such date, annual installments of the unpaid balance of the Assets in the Participant’s Account, including earnings on the unpaid balance at the rate provided in Subparagraph 5(b) of this Plan to the date of distribution. The amount of each installment shall be determined by multiplying the then unpaid balance, plus accrued earnings, in the Participant’s Account by a fraction, the numerator of which is one and the denominator of which is the number of annual installments remaining to be paid.
|
(b)
|
Election as to the Commencement and Timing of the Distribution of 2012 and Beyond Deferrals
. By election in the manner prescribed by the Committee, at the same time they elect to defer compensation under Paragraph 4, a Participant, may elect to have distribution of each year’s deferrals and associated earnings occur on the date or event specified in Subparagraphs (i), (ii) or (iii). For the avoidance of any doubt, a Participant’s distribution election shall apply to future years unless the Participant makes a subsequent election.
|
(i)
|
For each year, a Participant may elect to have distribution of that year’s deferrals and associated earnings under Subparagraph 5(b), commence six months following Separation from Service. Distribution shall be made or commence within the 60 day period following the date that is the date six months following Separation from Service. A Participant may elect to receive such distribution in the form of (A) one lump-sum payment, or (B) annual installments over a three to fifteen year period. In the case of a distribution over a period of years, the Company shall pay to the Participant on the date determined under this Subparagraph 6(b) (i) and on the yearly anniversaries of such date, annual installments of the unpaid balance of that year’s deferrals, including earnings on the unpaid balance at the rate provided in Subparagraph 5(b) of this Plan to the date of distribution. The amount of each installment shall be determined by multiplying the then unpaid balance of that year’s deferrals, plus accrued earnings, the numerator of which is one and the denominator of which is the number of annual installments remaining to be paid.
|
(ii)
|
For each year, a Participant may elect to have distribution of that year’s deferrals, and associated earnings under Subparagraph 5(b), paid or commence on a date that is indicated by the Participant as a number of years following Separation from Service, provided that
|
(iii)
|
For each year’s deferrals and associated earnings, a Participant may elect to receive distribution of that year’s deferrals on a specified date that is no earlier than three years following the beginning of the year giving rise to the deferrals. The Participant does not have to incur a Separation from Service to receive distribution under this Subparagraph (6) (b) (iii). Distribution shall be made in a lump sum within 90 days following the date elected by the Participant.
|
(c)
|
Changes in Distribution Elections
.
|
(i)
|
Participants may, by notice filed with the Company prior to December 31
st
of any year, make changes of distribution elections on a prospective basis. However, beginning in 2019, a distribution election must be affirmatively submitted by the Participant for each year. If no distribution election is timely made for a particular year beginning with 2019, the Participant shall be deemed to have elected distribution in the form of a lump sum six months following Separation from Service.
|
(ii)
|
Participants may, by notice filed with the Company, make changes of distribution elections with respect to prior deferred compensation as long (A) any such new distribution election is made at least one year prior to the date that the commencement of the distribution would otherwise have occurred and (B) the revised commencement date is at least five years later than the date that the commencement of the distribution would otherwise have occurred. With respect to 2012 and beyond deferrals, installment payments shall be treated as one payment.
|
(iii)
|
Special One-Time Election - Participants may, by notice filed with the Company prior to December 31, 2005, make a one-time election to change any distribution election previously made with respect to compensation deferred on or before December 31, 2005.
|
(iv)
|
Special One-Time Election - Participants may, by notice filed with the Company prior to December 31, 2008, make a one-time election to change any distribution election previously made with respect to compensation deferred during 2005, 2006, 2007 or 2008.
|
(d)
|
Distribution in Case of Certain Disability
- In the event of a Participant’s Disability prior to a calendar year elected by the Participant under Subparagraph 6(a) or Subparagraph (b) of this Plan for distribution to commence, distribution of the Participant’s Account shall commence in the month following the month in which the Participant terminates employment for Disability, in accordance with the Participant’s election under Subparagraph 6(a) or Subparagraph (b) of this Plan as to the form of distribution.
|
(e)
|
Distribution in Case of Death.
|
(i)
|
Distribution of 2011 and Prior Years Deferrals
. In the event of a Participant’s death, the balance of the Participant’s Account shall be distributed to the Participant’s Beneficiary(ies) over a period of not more than five (5) years, in accordance with the Participant’s election (in the manner prescribed by the Committee) for distribution in case of death. Any change in the period over which such payments are made shall only apply to future deferrals. Such distribution shall be made in a manner consistent with Subparagraph 6(a) of this Plan and shall commence in the month of January of the year after the year of the Participant’s death, on a date within said month to be determined by the Committee in its sole discretion. Additional annual payments for distributions made over a period of more than one year shall be made on the yearly anniversaries of such date. In the event of a Participant’s death
|
(ii)
|
Distribution of 2012 and Beyond Deferrals
. In the event of a Participant’s death prior to the date that the Participant commenced receiving of a specific year’s deferrals and associated earnings, such amount shall be distributed to the Participant’s Beneficiary (ies) in a lump sum within 90 days following the Participant’s death.
|
(f)
|
Request for Change in Distribution on Account of an Unforeseeable Emergency
- A Participant, Beneficiary or a legal representative may request an acceleration of any payments from a Participant’s Account by making such request in the manner prescribed by the Committee. The Committee, or its delegate, may, in its sole discretion, grant such request only if the Committee, or its delegate, determines that an emergency beyond the control of the Participant, Beneficiary or legal representative exists and which would cause such Participant, beneficiary or legal representative severe financial hardship if the payment of such benefits were not approved. Any such distribution for hardship shall be limited to the amount needed to meet such emergency plus the amount of any tax liability resulting from the distribution. A Participant who makes a hardship withdrawal may not reenter this Plan for 12 months after the date of withdrawal. Any distribution under this Subparagraph 6(f) shall be made on the 15th day after the Committee, or its delegate, grants such request for hardship withdrawal.
|
(g)
|
Employment not Terminated if Transferred to an Affiliate
- For the purposes of this Paragraph 6, a Participant shall not be deemed to have
|
(h)
|
Company may Distribute in Lump-Sum if Distributable Amount Less Than $5,000
- The Company reserves the right to make a lump-sum distribution, notwithstanding any other provision of this Plan, if the total Assets in the Participant’s Account in this Plan and in the Participant’s accounts in all other plans required under the Section 409A of the Code to be aggregated with this Plan, are $5,000 or less at any time after the Participant ceases to be employed by the Company.
|
(i)
|
Failure to make a Distribution Election.
|
(i)
|
2011 and Prior Years Deferrals
. If, with respect to any election to defer compensation for 2011 or any prior year, a Participant fails to make a proper election with respect to the distribution of such deferred compensation, such amount will be distributed in a lump sum on the thirtieth day following the Participant’s Separation from Service.
|
(ii)
|
Deferrals for 2012 through 2018
. If, with respect to any election to defer compensation for 2012 or any subsequent year through 2018, a Participant fails to make a proper election with respect to the distribution of such deferred compensation, such amount will be distributed in accordance with the prior year’s election (but not any election in place for a year prior to 2012). In the event that no valid election is on file, such amount will be distributed in a lump sum on the date specified in Subparagraph 6(b) (i).
|
(iii)
|
2019 and Beyond Deferrals.
If, with respect to any election to defer compensation for 2019 or any subsequent year, a Participant fails to make a proper election with respect to the distribution of such deferred compensation, such amount will be distributed in a lump sum six months following Separation from Service.
|
(j)
|
Distribution in Case of Certain Tax Events
- If, with respect to any Participant, the Plan fails to meet the requirements of the Code with respect to the deferral of tax liability, the Company may accelerate distribution from a Participant’s Account amounts sufficient to meet such Participant’s resulting Federal, State, Local and/or Foreign tax liability (including any interest and penalties).
|
1.1
|
Purpose.
The Key Executive Severance Plan of Public Service Enterprise Group Incorporated (“Plan”) is maintained by the Company to provide severance benefits to certain key executive-level employees of the Company and its affiliates whose employment is terminated under the circumstances described herein. The Plan was amended and restated effective December 17, 2012.
|
2.1
|
“
Accrued Obligation
” shall have the meaning set forth in Sections 4.2 and 5.2 of the Plan.
|
2.2
|
“
Affiliate
” means any corporation, trade or business if it or the Company are members of a controlled group of corporations, are under common control or are members of an affiliated service group within the meanings of Sections 414(b), 414(c) and 414(m), respectively, of the Code. The term “Affiliate” shall also include any other entity required to be aggregated with the Company pursuant to regulations under Section 414(o) of the Code.
|
2.3
|
“
Annual Base Salary
” means the annual rate of base salary payable to a Participant for services performed for an Employer, as in effect immediately prior to the Participant’s Date of Termination.
|
2.4
|
“
Benefits 2000 Participant
” means a Participant who is a participant in the Public Service Enterprise Group Incorporated Benefits 2000 Health and Welfare Benefits Plan.
|
2.5
|
“
Board
” means the board of directors of the Company.
|
2.6
|
“
Cause
” means:
|
(i)
|
Misconduct, gross negligence, theft, or fraud against the Company, including an isolated incident, that is determined by the Committee’s delegate to be material misconduct or material gross negligence;
|
(ii)
|
For “Performance Reasons,” as defined in Section 2.20 of the Plan;
|
(iii)
|
Material violation of the Standards of Integrity or other Company policy;
|
(iv)
|
Insubordination, including an isolated incident, that is determined by the Committee’s delegate to be material insubordination;
|
(v)
|
One or more significant acts of dishonesty;
|
(vi)
|
Any act that is likely to have the effect of injuring the reputation, business, or business relationship of, the Company, its Board of Directors, Officers, or employees, or its affiliates or subsidiaries;
|
(vii)
|
Violation of any fiduciary duty, including an isolated incident, that is determined by the Committee’s delegate to be a material violation;
|
(viii)
|
Breach of any duty of loyalty including an isolated incident, that is determined by the Committee’s delegate to be a material breach;
|
(ix)
|
Any breach of the restrictive covenants contained in Exhibit I below;
|
(x)
|
One or more acts of moral turpitude that constitute a violation of applicable law (included but not limited to a felony);
|
(xi)
|
Conviction of a felony or plea of
nolo contendere
to a felony charge;
|
(xii)
|
Pattern of behaviors that fail to meet the Company’s expectations described in “PSEG Values, Behaviors, and Leadership Competencies.” or
|
(xiii)
|
Any other reason determined to be Cause by the Chief Executive Officer of the Company.
|
2.7
|
“
Change in Control
” means the occurrence of any of the following events:
|
(a)
|
Any “person” (within the meaning of Section 13(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) is or becomes the beneficial owner within the meaning of Rule 13d-3 under the Exchange Act (a “Beneficial Owner”),
|
(b)
|
The following individuals cease for any reason to constitute a majority of the number of directors of the Company then serving: individuals who, on the Effective Date, constitute the Board and any new director (other than a director whose initial assumption of office is in connection with an actual or threatened election contest, including but not limited to a consent solicitation, relating to the election of directors of the Company) whose appointment or election by the Board or nomination for election by the Company’s stockholders was approved or recommended by a vote of at least two-thirds of the directors then still in office who either were directors on the Effective Date or whose appointment, election or nomination for election was previously so approved or recommended; or
|
(c)
|
There is consummated a merger or consolidation of the Company or any direct or indirect wholly-owned subsidiary of the Company with any other corporation, other than (i) a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior to such merger or consolidation 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 the Company or of its Affiliates, at least 75% of the combined voting power of the securities of the Company 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 the Company (or similar transaction) in which no person is or becomes the Beneficial Owner, directly or indirectly, of securities of the Company representing 25% or more of the combined voting power of the Company’s then outstanding securities; or
|
(d)
|
The shareholders of the Company approve a plan of complete liquidation or dissolution of the Company or there is consummated an agreement for the sale or disposition by the Company of all or substantially all of the Company’s assets, other than a sale or disposition by the Company of all or substantially all of the Company’s assets to an entity, at least 75% of the combined voting power of the voting securities of which are owned by stockholders of the Company in substantially the same proportions as their ownership of the Company immediately prior to such sale.
|
2.8
|
“
Code
” means the Internal Revenue Code of 1986, as amended, and the regulations promulgated thereunder.
|
2.9
|
“
Committee
” means the Organization and Compensation Committee of the Board or any successor of such Committee.
|
2.10
|
“
Company
” means Public Service Enterprise Group Incorporated and any successors thereto.
|
2.11
|
“
Confidential Information
” means all trade secrets, proprietary and confidential business information belonging to, used by, or in the possession of the Company or any of its Affiliates, including but not limited to information, knowledge or data related to business strategies, plans and financial information, mergers, acquisitions or consolidations, purchase or sale of property, leasing, pricing, sales programs or tactics, actual or past sellers, purchasers, lessees, lessors or customers, those with whom the Company or its Affiliates has begun negotiations for new business, costs, employee compensation, marketing and development plans, inventions and technology, whether such confidential information, knowledge or data is oral, written or electronically recorded or stored, except information in the public domain, information known by the Participant prior to employment with an Employer, and information received by the Participant from sources other than the Company or its Affiliates, without obligation of confidentiality.
|
2.12
|
“
Date of Termination
” means, provided that the termination constitutes a Separation from Service, (i) the date of a Participant’s death, (ii) the date on which the termination of the Participant’s employment by an Employer for Cause or without Cause, or (iii) the date on which the Participant terminates employment for Good Reason or without Good Reason, including Retirement and Disability.
|
2.13
|
“
Disability
” means (a) if the Participant is a participant in the Pension Plan, the Participant is determined to be totally and permanently disabled by the Company’s medical director; or (ii) if the Participant is a participant in the Cash Balance Plan, the Participant is receiving benefits from the Company’s long-term disability plan.
|
2.14
|
“
Eligible Employee
” means an individual who is designated as such in accordance with Section 3.1. An Eligible Employee shall not include a “project employee.”
|
2.15
|
“
Effective Date
” of the amendment and restatement is February 18, 2019.
|
2.16
|
“
Employer
” means the Company and each Affiliate, and any successors thereto.
|
2.17
|
“
Good Reason
” means:
|
(a)
|
Any material reduction in the Participant’s Annual Base Salary, Target Bonus or Target Long-Term Incentive, other than reductions pursuant to a broad-based compensation reduction program or policy affecting the Participant and all
|
(b)
|
Any material adverse change in the Participant’s title, authority, duties, or responsibilities or the assignment to the Participant of any duties or responsibilities inconsistent in any respect with those customarily associated with the position of the Participant immediately prior to the Change in Control. Notwithstanding the foregoing, this Subsection (b) shall not apply if the Participant moves into a position with ER&T;
|
(c)
|
The failure of any successor to the Company to assume this Plan in accordance with Section 11.5(b);
|
(d)
|
Where the only comparable position offered to the Participant within the Employer following a Change in Control would otherwise meet the requirements of Subsections (a) and (b) of this Section 2.17 of the Plan, but would require the Participant to increase their one-way commuting distance from their principal residence by more than 50 miles; or
|
(e)
|
Any other material breach of the terms of the Plan by the Company that either is not taken in good faith or, even if taken in good faith, is not remedied by the Company promptly after receipt of notice thereof from the Participant.
|
2.18
|
“
Nonqualified Plan
” means the Retirement Income Reinstatement Plan for Non‑Represented Employees of Public Service Enterprise Group Incorporated.
|
2.19
|
“
Participant
” means an Eligible Employee who is listed on either Schedule A, Schedule B or Schedule C hereto, as the same may be amended from time to time.
|
2.20
|
“
Performance Reasons
” means the Participant’s failure meet the expectations established for such Participant’s function in the Company as: (i) communicated to the Participant by their manager during any performance review, or (ii) may be communicated to the Participant otherwise by their manager from time to time either orally or in writing.
|
2.21
|
“
Plan
” means this Key Executive Severance Plan of Public Service Enterprise Group Incorporated, as set forth herein and as may be amended, modified or supplemented from time to time.
|
2.22
|
“
Prior Equity Awards
” means outstanding stock options, stock appreciation rights, restricted stock, restricted stock units, performance shares and performance shares units.
|
2.23
|
“
Retiree Medical Plan
” means the Public Service Enterprise Group Incorporated Medical Benefits Plan for Retired Employees.
|
2.24
|
“
Retirement
” means a Separation from Service after the Participant has satisfied the eligibility requirements for early or normal retirement under the terms of the Retirement Plan in which the Participant participates. Notwithstanding the foregoing, for the purposes of determining benefit entitlements under Article V of the Plan, Retirement shall not include forced retirements or any termination by an Employer without Cause or voluntary termination by the Participant for Good Reason that occurs on a date on which the Participant is Retirement eligible.
|
2.25
|
“
Retirement Plan
” means the retirement plan in which the Participant participates in either the Pension Plan of Public Service Enterprise Group Incorporated or the Cash Balance Pension Plan of Public Service Enterprise Group Incorporated.
|
2.26
|
“
Schedule A Participant
” means a Participant listed on Schedule A hereto.
|
2.27
|
“
Schedule B Participant
” means a Participant listed on Schedule B hereto.
|
2.28
|
“
Schedule C Participant
” means a Participant listed on Schedule C hereto.
|
2.29
|
“
Selectline Participant
” means a Participant who is a participant in the Public Service Enterprise Group Incorporated Selectline Benefits Plan.
|
2.30
|
“
Separation from Service
” shall be deemed to have occurred if a Participant and the Company or any Affiliate reasonably anticipates, based on the facts and circumstances, that either:
|
(a)
|
The Participant will not provide any additional services for the Company or an Affiliate after a certain date; or
|
(b)
|
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.
|
2.31
|
“
Specified Employee
” means any individual who is a key employee (as defined in Section 416(i) of the Code without regard to Section 416(i)(5) of the Code) of the Company at any time during the 12-month period ending on each December 31 (the “identification date”). If an individual is a key employee as of an identification date, the individual shall be treated as a Specified Employee for the 12-month period beginning on the April 1 following the identification date. Notwithstanding the foregoing, an individual shall not be treated as a Specified Employee unless any stock of the Company or an Affiliate is publicly traded on an established securities market or otherwise.
|
2.32
|
“
Target Bonus
” means the Participant’s target annual bonus, if any, under the applicable annual incentive compensation plan of the Company for the fiscal year in which the Date of Termination occurs.
|
2.33
|
“
Target Long-Term Incentive
” means the Participant’s target long-term incentive award, if any, under the applicable long-term incentive compensation plan of the Company.
|
3.1
|
Eligible Employees
. Eligibility to participate in the Plan shall be limited to certain key executives of an Employer who (a) are not parties to individual employment or change in control agreements that provide for severance benefits, and (b) are designated, by duly adopted resolution of the Committee, as Eligible Employees.
|
3.2
|
Participation
. Schedules A, B and C hereto list the Eligible Employees who have satisfied the conditions for Plan participation and the date as of which each such Eligible Employee became a Participant. The Committee shall cause Schedules A, B and C to be updated from time to time to reflect the Participants who are currently participating in the Plan. An employee who becomes an Eligible Employee on or after January 1, 2014 shall become a Schedule C Participant. However, if an Eligible Employee is newly hired or promoted into a position reflected on Schedule B as of June 16, 2014, the Eligible Employee shall become a Schedule A Participant.
|
3.3
|
Release of Claims
. Notwithstanding anything in the Plan to the contrary, payment of any benefits under the Plan is expressly contingent upon the Participant’s execution and delivery to the Company, within 30 days after the Participant’s Date of Termination, of a written agreement provided by the Company, wherein the Participant releases and discharges the Company and each of its Affiliates of any and all claims against the Company and its Affiliates related in any way to the Participant’s employment with an Employer and the termination of such employment.
|
3.4
|
Committee Discretion
. The Committee shall have the sole discretion to determine eligibility for benefits under the Plan.
|
4.1
|
Eligible Terminations
. If a Participant’s employment is involuntarily terminated by an Employer for any reason other than Cause, the Participant shall be eligible for the benefits described in this Article IV.
|
4.2
|
Cash payment
. The Company shall pay to the Participant a lump sum, in cash, the sum of (a) and (b):
|
(a)
|
The Participant’s base salary through the Date of Termination to the extent not theretofore paid (hereinafter referred to as the “Accrued Obligations”); and
|
(b)
|
An amount equal to the product of 1.0 times (0.5 times if the Participant were employed less than one year) the sum of the Participant’s Annual Base Salary and Target Bonus.
|
4.3
|
Long-Term Incentive Awards.
The treatment of Prior Equity Awards shall be governed by the terms of the Long-Term Incentive Plan and the related award agreements.
|
4.4
|
Annual Incentive Awards
. The Participant shall receive a prorated annual incentive award pursuant to the performance incentive program, if applicable, for the calendar year in which the Participant’s Termination of Employment occurs. The award shall be calculated based solely on 100 percent of the target incentive award and prorated based on the number of calendar days of employment in the calendar year in which the Participant’s termination occurs through the Participant’s Date of Termination. For purposes of this Section 4.4, calendar year shall mean 365 days.
|
4.5
|
Outplacement Services
. Outplacement services approved by the Committee, which may include individual or group counseling and administrative assistance or workshops, shall be available beginning on the Participant’s Date of Termination or such earlier date designated by the Participant’s business unit leadership. Outplacement services shall continue to be available for the period up to 12 months.
|
4.6
|
Educational Assistance
. Educational assistance shall be provided in accordance with the Employer’s tuition program.
|
4.7
|
Health Care Benefits
.
|
(a)
|
Medical Coverage for Selectline Participants
.
|
(i)
|
A Selectline Participant who has satisfied the eligibility requirements for medical coverage under the Retiree Medical Plan on the Date of Termination shall be eligible to elect coverage thereunder in accordance with the terms of the Retiree Medical Plan.
|
(ii)
|
A Selectline Participant who has not otherwise satisfied the eligibility criteria for participation in the Retiree Medical Plan prior to the Date of Termination, shall be eligible to elect coverage under the Retiree Medical Plan as though such Selectline Participant has otherwise satisfied the eligibility requirements if:
|
(A)
|
The Selectline Participant has attained age 50 and completed ten or more Years of Service as of the Date of Termination but the sum of
|
(B)
|
The Selectline Participant has attained age 49 and completed 20 or more Years of Service as of the Date of Termination but the sum of the Selectline Participant’s age and Years of Service is less than 80.
|
(iii)
|
If a Selectline Participant who is not eligible for, or does not elect, coverage under the Retiree Medical Plan, timely elects continuation coverage under the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”), the Employer shall pay the same portion of the cost of medical and/or dental coverage that it paid immediately prior to the Selectline Participant’s Date of Termination for active employees during the one-year period following the Selectline Participant’s Date of Termination. During the one-year period, the Participant shall pay the difference between the total cost of medical and/or dental coverage and the Employer’s portion of the cost. After the expiration of the one-year period, the Selectline Participant shall be charged the COBRA rate for medical and/or dental coverage for the remainder of the COBRA period. If the Participant does not timely elect COBRA medical and/or dental coverage, the Participant shall not be entitled to the benefit under this Subsection (iii). Following the one-year period, the Selectline Participant shall not be permitted to elect coverage, or be covered, under the Retiree Medical Plan. During the entire COBRA period, the Selectline Participant shall be responsible for the full cost of COBRA vision and hearing coverage, as applicable.
|
(b)
|
Medical Coverage for Benefits 2000 Participants
.
If a Benefits 2000 Participant who is not eligible for, or does not elect, coverage under the Retiree Plan, timely elects COBRA continuation medical and/or dental coverage, the Employer shall pay the same portion of the cost of medical and/or dental coverage that it paid immediately prior to the Participant’s Date of Termination for active employees during the one-year period following the Participant’s Date of Termination. During the one-year period, the Participant shall pay the difference between the total cost of medical and/or dental coverage and the Employer’s portion of the cost. After the expiration of the one-year period, the Benefits 2000 Participant shall be charged the COBRA rate for medical and/or dental coverage for the remainder of the COBRA period. If the Participant does not timely elect COBRA medical and/or dental coverage, the Participant shall not be entitled to the benefit under this Subsection (b). Following the one-year period, the Benefits 2000 Participant shall not be permitted to elect coverage, or be covered, under the Retiree Medical Plan. During the entire COBRA period, the Benefits 2000 Participant shall be responsible for the full cost of COBRA vision.
|
4.8
|
Other Benefits
. A Participant shall not be entitled to any severance, separation or early retirement incentive pay or benefits other than as provided hereunder or under any qualified or nonqualified retirement plan or deferred compensation arrangement maintained by the Employer. Except as provided in the foregoing sentence, a Participant’s rights under any other employee benefit plans maintained by the Company or an Affiliate shall be determined in accordance with the provisions of such plans, including the Company’s right to amend or terminate such plans at any time.
|
5.1
|
Eligible Terminations After a Change in Control
. If, within two years following the occurrence of a Change in Control, either (a) an Employer shall terminate a Participant’s employment for any reason other than for Cause, or (b) a Participant shall voluntarily terminate employment for Good Reason, the Participant shall be eligible for benefits described in this Article V of the Plan. Notwithstanding anything in the Plan to the contrary, a Participant shall not be entitled to benefits under the Plan if termination from employment is the result of death, Disability or the Participant voluntarily terminates employment, except for Good Reason and except as otherwise provided under the Plan.
|
5.2
|
Cash Payment
. The Company shall pay to the Participant, in a lump sum in cash, the aggregate of the amounts in (a) and (b) below:
|
(i)
|
The Participant’s base salary through the Date of Termination; and
|
(ii)
|
The product of (x) the Participant’s Target Bonus and (y) a fraction, the numerator of which is the number of days in the current calendar year through the Date of Termination, and the denominator of which is 365;
|
(b)
|
Either (i), (ii) or (iii):
|
(i)
|
In the case of a Schedule A Participant, the amount equal to the product of two times the sum of the Schedule A Participant’s Annual Base Salary and Target Bonus;
|
(ii)
|
In the case of a Schedule B Participant, the amount equal to the product of three times the sum of the Schedule B Participant’s Annual Base Salary and Target Bonus; or
|
(iii)
|
In the case of a Schedule C Participant, the amount equal to the product of one and one-half times the sum of the Schedule C Participant’s Annual Base Salary and Target Bonus.
|
5.3
|
Long Term Incentive Awards
. The treatment of Prior Equity Awards shall be governed by the terms of the Long-Term Incentive Plan and the related award agreements.
|
5.4
|
Health Care and Other Welfare Benefits
. The Company shall pay the cost of the continued coverage of the Participant and/or the Participant’s family under the Company’s medical and dental employee benefit plans for 18 months after the Date of Termination provided that the Participant timely makes an election to continue such coverage in the Company’s medical and dental employee benefit plans under COBRA, subject to the requirements and limitations thereof. Unless otherwise limited by applicable law, thereafter, the Company shall pay the cost of the continued coverage of the Participant and/or the Participant’s family under the Company’s medical and dental employee benefit plans for an additional period of six months, in the case of a Schedule A Participant, or 18 months, in the case of a Schedule B Participant (for a Schedule C Participant, no additional period beyond the initial 18 months); provided however, that if the Participant becomes re-employed with another employer and is eligible to receive medical or dental benefits under another employer provided plan, the medical and dental benefits provided by the Company under this Plan shall be secondary to those provided under such other plan during the applicable period of eligibility. If the Participant does not timely elect COBRA coverage, the Participant shall not be entitled to the COBRA continuation benefit under this Section 5.4 of the Plan.
|
5.5
|
Nonqualified Pension Benefit
. The Participant shall be paid, in a lump sum payment in cash, an amount equal to the excess of (a) - (b):
|
(a)
|
The actuarial equivalent of the benefit under the Company’s applicable Retirement Plan (utilizing the rate used to determine lump sums and, to the extent applicable, other actuarial assumptions no less favorable to the Participant than those in effect under the Retirement Plan immediately prior to the Effective Date), any benefit under the Nonqualified Plan and, to the extent applicable, any other defined benefit retirement arrangement between the Participant and the Company (“Other Pension Benefits”) which the Participant would receive if the Participant’s employment continued for two, three or one and one-half additional years (for Schedule A Participants, Schedule B and Schedule C Participants, respectively) beyond the Date of Termination and, assuming that the Participant’s compensation for such deemed additional period was the Participant’s Annual Base Salary as in effect immediately prior to the Date of Termination and assuming a bonus in each year during such deemed additional period equal to the Target Bonus,
|
(b)
|
The actuarial equivalent of the Participant’s actual benefit (paid or payable), if any, under the Retirement Plan, the Nonqualified Plan and Other Pension Benefits as of the Date of Termination (utilizing the rate used to determine lump sums and, to the extent applicable, other actuarial assumptions no less favorable to the Participant than those in effect under the Retirement Plan immediately prior to the effective date of the Change in Control).
|
5.6
|
Deferred Compensation
. Any compensation previously deferred (other than pursuant to a tax-qualified plan) by or on behalf of the Participant (together with any accrued interest or earnings thereon), whether or not then vested, shall become vested on the Date of Termination and shall be paid in accordance with the terms of the applicable deferred compensation plan, policy or practice under which it was deferred to the extent permitted by Section 409A of the Code.
|
5.7
|
Outplacement Services
. The Company shall, at its sole expense as incurred, provide the Participant with outplacement services suitable to the Participant’s position for a period not to exceed one year following the Date of Termination with a nationally recognized outplacement firm.
|
5.8
|
Other Benefits
. To the extent not theretofore paid or provided, the Company shall pay or provide to the Participant any other amounts or benefits required to be paid or provided or which the Participant is entitled to receive under any plan, program, policy, practice, contract or agreement of the Company (or other Employer), including earned but unpaid stock and similar compensation, but excluding medical or dental benefits if the Participant is eligible for such benefits to be provided by a subsequent employer, and benefits payable under any severance plan or policy.
|
5.9
|
Termination By Employer For Cause or By Participant Other Than For Good Reason.
If, at any time after a Change in Control, either (a) an Employer shall terminate a participant’s employment for Cause or (b) the Participant shall voluntarily terminate employment other than for Good Reason, the Employer shall have no further payment obligations to the Participant other than for the Participant’s base salary through the Date of Termination and
|
5.10
|
Death
. If a Participant’s employment terminates by reason of the Participant’s death after a Change in Control, all Accrued Obligations as of the time of death shall be paid to the Participant’s estate or beneficiary, as applicable, in a lump sum in cash in accordance with Section 6.1 of the Plan. The Participant’s estate or beneficiary shall be entitled to any Other Benefits in accordance with their terms. The treatment of Prior Equity Awards shall be governed by the terms of the Long-Term Incentive Plan and the related award agreements.
|
5.11
|
Disability
. If a Participant’s employment is terminated by reason of Disability after a Change in Control, all Accrued Obligations shall be paid to the Participant in a lump sum in cash in accordance with Section 6.1 of the Plan. The treatment of Prior Equity Awards shall be governed by the terms of the Long-Term Incentive Plan and the related award agreements.
|
5.12
|
Retirement.
If a Participant’s employment terminates as a result of Retirement after a Change in Control, the Participant shall be paid the Accrued Obligations in a lump sum in cash in accordance with Section 6.1 of the Plan and the Participant shall be entitled to any Other Benefits in accordance with their terms. The treatment of Prior Equity Awards shall be governed by the terms of the Long-Term Incentive Plan and the related award agreements.
|
6.1
|
Time of Payments
. Payments under the Plan shall be made to the Participant as follows:
|
(a)
|
With respect to benefits, except those under Sections 4.4 and 5.10 of the Plan, payment to a Participant who is not a Specified Employee shall be made within the 60-day period following the Participant’s Date of Termination. However, if the period to consider and revoke the written agreement required to receive the benefits described in Articles IV and V of the Plan (i.e., the waiver and release) spans two taxable years, in all events the payments will be made in the second taxable year within 30 days following the later of the end of the first taxable year or the date the executed release is received by the Company.
|
(b)
|
With respect to benefits under Section 5.10 of the Plan, payment shall be made within the 60-day period following the Participant’s date of the Participant’s death.
|
(c)
|
With respect to benefits under Section 4.4 of the Plan, payments shall be made to the Participant at the same time the payments are made to active employees.
|
(d)
|
Notwithstanding anything to the contrary in the Plan, to the extent necessary to comply with Section 409A of the Code, payments to a Participant who is a Specified Employee shall be made within the 60-day period following the six-
|
(e)
|
All payments under the Plan that are reimbursements of covered expenses incurred by the Participant shall be made within the taxable year in which the expense is incurred.
|
6.2
|
Payment Offsets
. Notwithstanding anything in the Plan to the contrary, in the event a Participant is entitled to receive severance payments both under this Plan and under the terms of either (a) an individual change of control or employment agreement, (b) another severance pay plan or policy of an Employer or (c) any existing or future law or regulation, the benefits payable under this Plan shall be reduced by the amount of any severance benefits such Participant is entitled to receive under such individual agreement, plan, policy, law or regulation.
|
6.3
|
Cap on Excess Parachute Payments; Gross-Up Payments
. Notwithstanding anything in the Plan to the contrary, if (a) a Participant is a “disqualified individual” (as defined in Section 280G(c) of the Code) and (b) the severance benefits provided under Articles IV or V, as applicable, together with any other payments the Participant has the right to receive from an Employer, would constitute a “parachute payment” (as defined in Section 280G(b) of the Code) (“Parachute Payments”), the following provisions shall apply:
|
(a)
|
The severance benefits under Articles IV or V shall not exceed an amount which, together with any other Parachute Payments, the Participant has a right to receive from the Employer, would be 2.99 times the Participant’s “base amount” (as defined in Section 280G of the Code) so that no portion of the amounts received by the Participant shall be subject to the excise tax imposed under Section 4999 of the Code.
|
(b)
|
The determination of whether any limitation on the severance benefits payable under Articles IV or V is necessary shall be made by the Company’s independent auditor or such other certified public accounting firm as may be jointly designated by the Participant and the Company (the “Accounting Firm”), which shall provide detailed supporting calculations to the Participant and the Company. The determinations of the Accounting Firm shall be conclusive and binding on the Company and the Participant. All fees and expenses of the Accounting Firm shall be borne solely by the Company.
|
(c)
|
If through error or otherwise, a Participant shall receive payments under the Plan, together with other Parachute Payments the Participant has the right to receive from an Employer, in excess of 2.99 times the Participant’s base amount, the Participant shall immediately repay the excess to the Employer upon notification from the Employer that an overpayment has been made. If the Participant fails to repay the excess to the Employer within 10 business days of the date of the Employer’s notification, the Participant will become liable to the Employer for an amount equal to two (2) times the excess amount.
|
6.4
|
Compliance with Section 409A of the Code
. Notwithstanding anything in the Plan to the contrary, all Plan benefit obligations and payments are subject to Section 409A of the Code. To the extent required, the Company may modify the severance benefits payable hereunder to comply with Section 409A of the Code; provided, however, that the present value of the aggregate Plan benefits payable to a Participant after such modification shall not be less than the present value of the Plan benefits payable to the Participant prior to the modification.
|
6.5
|
Tax Withholding
. Notwithstanding any other provision of this Plan, the Company may withhold from any amounts payable under this Plan such Federal, state, local, employment or foreign taxes as shall be required to be withheld pursuant to any applicable law or regulation.
|
7.1
|
Confidentiality
. As a condition to participation in the Plan, each Participant agrees to hold in a fiduciary capacity for the benefit of the Company and its Affiliates all Confidential Information which shall have been obtained by the Participant during the Participant’s employment by the Employer; except, however, that this Section 7.1 shall not apply to Confidential Information that is or becomes public knowledge, unless such Confidential Information became or becomes public knowledge due to acts of the Participant or representatives of the Participant in violation of this Section 7.1. Upon termination of the Participant’s employment, the Participant shall return to the Company all Confidential Information in their possession. After termination of the Participant’s employment with the Employer, the Participant shall not, without the prior written consent of the Company or as may otherwise be required by law or legal process, communicate or divulge any such Confidential Information to anyone other than the Company and those designated by it, except (a) otherwise publicly available information, (b) as may be necessary to enforce the Participant’s rights under the Plan or as necessary for the Participant to defend against a claim asserted directly or indirectly by the Company or its Affiliates, or (c) as may be compelled by service of a valid subpoena or other legal process (if the Participant is served with a valid subpoena or other legal process, the Participant must so notify the Company within three business days). Furthermore, nothing contained in this Plan prevents a Participant from disclosing without notice to the Company any perceived violation of law to any Federal, state, or local governmental agency or entity including, but not limited to, the Securities and Exchange Commission, or making other disclosures that are protected under the whistleblower provisions of any law. Finally, nothing in this Plan prevents a Participant - nor should a Participant be held civilly or criminally liable under any law - if the Participant discloses a trade secret: (a) in confidence to a Federal, State or local government official, either directly or indirectly, or to an attorney solely for the purpose of reporting or investigating a suspected violation of law; (b) in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal; (c) to the Participant’s attorney in connection with a lawsuit alleging retaliation by an employer for reporting a suspected violation of law; or (d) in connection with a lawsuit described in the immediately preceding subparagraph (c), provided the Participant: (i) files any document
|
7.2
|
Non-Compete
. As a condition to participation in the Plan, each Participant agrees that in the event the Participant voluntarily terminates employment other than for Good Reason, for the period of one year from Date of Termination, the Participant will not, without the written consent of the Company, directly or indirectly own, manage, operate, join, control, become employed by, consult to or participate in the ownership, management, or control of any business which is in direct competition with the Company or its Affiliates.
|
7.3
|
Non-Solicitation
. As a condition to participation in the Plan, each Participant agrees that, in the event the Participant voluntarily terminates employment other than for Good Reason, for the period of one year following the Date of Termination, the Participant will not, directly or indirectly, solicit or hire, or encourage the solicitation or hiring by any employer other than the Company or its Affiliates, for any position as an employee, independent contractor, consultant or otherwise, any person who was a managerial or higher level employee of an Employer at any time during the term of the Participant’s employment by the Employer; provided, however, that this provision shall not apply with respect to the solicitation of any person after six months from the date on which such person’s employment by an Employer has terminated.
|
7.4
|
Enforcement
. In the event of a breach by the Participant of any of the covenants set forth in this Article VII, it is agreed that the Company shall suffer irreparable harm for which money damages are not an adequate remedy, and that, in the event of such breach, the Company shall be entitled to obtain an order of a court of competent jurisdiction for equitable relief from such breach, including, but not limited to, temporary restraining orders and preliminary and/or permanent injunctions against the breach of such covenants by the Participant. In the event that the Company should initiate any legal action for the breach or enforcement of any of the provisions contained in this Article VII and the Company does not prevail in such action, the Company shall promptly reimburse the Participant the full amount of any court costs, filing fees, attorney’s fees which the Participant incurs in defending such action, and any loss of income during the period of such litigation.
|
8.1
|
Amendment
. The Company may amend this Plan at any time, and from time to time, by action of the Committee; provided, however, that no amendment adopted after the effective date of a Change in Control shall have the effect of either (a) removing an individual from the list of Participants, (b) adding conditions for participation or the entitlement to receive benefits hereunder, (c) reducing the amount of benefits payable to a Participant, or (d) otherwise restricting a Participant’s right to receive benefits under the Plan, except as may otherwise be required to conform such payments to the requirements of Section 409A of the Code.
|
8.2
|
Termination
. The Committee may terminate the Plan at any time prior to a Change in Control. The Plan may not be terminated after the effective date of a Change in Control.
|
9.1
|
Plan Administrator
. The Plan shall be administered by the Committee, which shall have the duties and responsibilities for administering the Plan as are specifically set forth in this Article IX.
|
9.2
|
Responsibilities of Committee
.
|
(a)
|
The Committee shall have responsibility for the day to day administration of the Plan. In addition, the Committee shall have the specific powers, duties, responsibilities and obligations specifically provided for herein.
|
(b)
|
Subject to the express provisions of the Plan, the Committee shall have full and exclusive authority to interpret the Plan and to make all other factual determinations deemed necessary or advisable in the implementation and administration of the Plan, including but not limited to determinations with respect to the eligibility of Participants to receive benefits under the Plan and the status and rights of such Participants and all other persons affected hereunder. The Committee’s interpretation and construction of the Plan shall be conclusive and binding on all persons.
|
(c)
|
The Committee shall have sole authority to adopt rules and regulations, which shall be administered by the Committee. In addition, the Committee shall have the discretionary authority to issue rulings and interpretations concerning the Plan and all matters arising thereunder, on a uniform and nondiscriminatory basis, provided the same shall not be contrary to or inconsistent with any provision of the Plan.
|
(d)
|
As a condition of distributing any benefit under the Plan, the Committee may prescribe the use of such forms and require the furnishing of such information as the Committee may deem appropriate for administering the Plan.
|
9.3
|
Allocation or Delegation of Duties and Responsibilities
. In furtherance of its duties and responsibilities under the Plan, the Committee may:
|
(d)
|
Delegate any of its duties and responsibilities hereunder to such officer or officers of the Company as the Committee shall designate; except, however, that the Committee may not delegate to any other person the designation of Eligible Employees under Section 3.1 or the authority to consider and determine appeals of alleged adverse benefit determinations.
|
9.4
|
Expenses
. Unless otherwise agreed to by the Company, no person acting as a fiduciary hereunder (who is an employee of an Employer) shall receive any compensation for services as such. Expenses incurred by fiduciaries in connection with the administration of the Plan shall be paid by the Company.
|
9.5
|
Indemnification of Plan Administrator.
The Company shall indemnify, to the fullest extent permitted by law, each person made or threatened to be made a party to any civil or criminal action or proceeding by reason of the fact that such person, or such person’s testator or intestate, was a member of the Committee, or a delegate of the Committee, acting in the capacity of Plan administrator.
|
9.6
|
Reliance Upon Others
. The Committee, any person to whom it may delegate such of its duties and powers as provided herein, and the officers and directors of the Company shall be entitled to rely conclusively upon and shall be fully protected in any action taken by them in good faith in reliance upon any tables, valuations, certificates, opinions, reports or other advice furnished to them by any duly appointed actuary, accountant, legal counsel (who may be counsel for the Company) or other specialist.
|
9.7
|
Notification.
All notices, reports and statements in connection with the Plan that are given, made, delivered or transmitted to a Participant shall be deemed duly given, made, delivered, or transmitted when mailed, by such class as the sender may deem appropriate, with postage prepaid and addressed to the Participant at the address last appearing on the records of the Employer with respect to this Plan. All notices, direct actions or other communications given, made, delivered or transmitted by a Participant to an Employer or Committee shall not be deemed to have been duly given, made, delivered, transmitted or received unless and until actually received by the Employer or Committee.
|
9.8
|
Multiple Capacities
. A person may serve in more than one fiduciary capacity with respect to the Plan.
|
10.1
|
Submission of Claims
. The initial claim by any Participant for benefits under this Plan shall be submitted in writing to the Committee (or its delegate) within 60 days after the occurrence of the termination of employment that the Participant claims to have triggered entitlement to Plan benefits.
|
10.2
|
Computation and Review of Claims
. All benefits shall be computed by the Committee or its delegate. All claims shall be approved or denied by the Committee (or its delegate) as soon as practicable, but in no event later than 90 days after application by the Participant. The Committee may take an additional 90 days to review the claim, provided that the Participant is notified in writing within the initial 90-day period.
|
(a)
|
Initial Denial of Claim - Any denial of a claim shall include:
|
(i)
|
Reason or reasons for the denial;
|
(ii)
|
Reference to pertinent Plan provisions on which the denial is based;
|
(iii)
|
Description of any additional material or information necessary for the Participant to perfect the claim together with an explanation of why the material or information is necessary; and
|
(iv)
|
Explanation of the Plan’s claim review procedure, described below.
|
(b)
|
Review of a Denied Claim - A Participant shall have a reasonable opportunity to appeal a denied claim to the Committee (or its delegate) for a full and fair review. The Participant or a duly authorized representative shall have 60 days after receipt of written notification of the denial of claim in which to file an appeal with the Committee. The request for review shall be in writing and the Participant or a duly authorized representative shall submit written comments, documents, records and other information relating to the appeal. The Participant or a duly authorized representative may review, free of charge, pertinent Plan documents, records and other information relevant to the appeal.
|
(c)
|
Committee Review - The Committee’s (or its delegate’s) review shall take into account all comments, documents, records and other information submitted by the Participant relating to the claim, without regard to whether such information was submitted or considered in the initial benefit determination.
|
(d)
|
Written Decision - The Committee (or its delegate) shall issue a decision on the reviewed claim promptly but no later than 60 days after receipt of the review. The Committee may take an additional 60 days to review the claim, provided that the Participant is notified in writing within the initial 60-day period. The Committee’s decision shall be in writing and shall include:
|
(i)
|
Reasons for the decision;
|
(ii)
|
References to the Plan provisions on which the decision is based;
|
(iii)
|
Statement that the Participant is entitled to receive, upon request, reasonable access to, and copies of, all documents, records and other information relevant to the claim; and
|
(iv)
|
Statement that the Participant is entitled to bring a civil suit under Section 502(a) of ERISA.
|
(e)
|
Binding Effect - The Committee’s (or its delegate’s) decision shall be final and binding on the Participant and the Employer.
|
11.1
|
Construction
. This Plan shall be construed and enforced in accordance with and governed by the internal substantive laws (and not the laws relating to conflict of laws or choice of laws) of the State of New Jersey, except to the extent that such laws are preempted by Federal law.
|
11.2
|
Unfunded Plan
. The obligations of the Company under this Plan are not required to be funded in advance. Nothing contained in this Plan shall give an Eligible Employee or Participant any right, title or interest in any property of the Company or any of its Affiliates.
|
11.3
|
No Right to Continued Employment
. Nothing contained herein shall be deemed to give any Eligible Employee or Participant the right to be retained in the employment of an Employer or to limit the rights of any Employer to discharge any Eligible Employee or Participant at any time, with or without notice and with or without Cause.
|
11.4
|
Partial Invalidity
. The invalidity or unenforceability of any term or provision, or any clause, or portion thereof, of this Plan shall in no way impair or affect the validity or enforceability of any other provision of this Plan, which shall remain in full force and effect.
|
11.5
|
Successors and Assigns.
|
(a)
|
This Plan shall inure to the benefit of and be binding upon the Company and its successors and assigns.
|
(b)
|
The Company shall require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business and/or assets of the Company to assume expressly and agree to perform the Company’s obligations under the Plan in the same manner and to the same extent that the Company would be required to perform it if no such succession had taken place.
|
(c)
|
In no event shall a Participant assign their interests under the Plan to any other person without the prior written consent of the Committee.
|
11.6
|
Waivers
. Failure to strictly comply with any term, condition or requirement set forth in the Plan shall not be deemed a waiver of such term, condition or requirement, nor shall any
|
11.7
|
Gender and Number
. The singular shall include the plural, unless indicated otherwise by the context.
|
11.8
|
Headings
. The headings of the Plan are for purposes of reference only and shall not limit or otherwise affect the meaning hereof.
|
NAME
|
TITLE
|
PARTICIPATION DATE
|
Stuart J. Black
|
VP Special Projects
|
03/01/10
|
Jorge L. Cardenas
|
VP - Asset Management and Centralized Services, PSE&G
|
1/23/07
|
Rose M. Chernick
|
VP and Controller (Note: Position/Title change effective 3/11/2019)
|
8/09/10
|
John Paul Cowan
|
SVP - Operations, PSEG Fossil
|
09/15/09
|
Lathrop B. Craig
|
VP - ISO Operations (ER&T)
|
09/05/11
|
Daniel J. Cregg
|
EVP & CFO, PSEG
|
12/19/06
|
David M. Daly
|
President & COO, PSE&G & COB PSEG LI
|
1/28/08
|
Paul J. Davison
|
VP - Nuclear Engineering, PSEG Nuclear
|
12/14/09
|
Derek DiRisio
|
President - PSEG Services Corporation
|
12/20/04
|
Joseph A. Forline
|
VP - Gas Operations
|
12/19/06
|
Carl J. Fricker
|
VP - Power Operations Support
|
12/14/09
|
Kim C. Hanemann
|
SVP - Electric Transmission & Distribution
|
12/21/10
|
Bradford D. Huntington
|
VP & Treasurer
|
04/16/11
|
Scott Jennings
|
SVP Corporate Planning, Strategy & Utility Finance (Note: Position/Title change effective 3/11/2019)
|
10/18/05
|
Shawn P. Leyden
|
VP and Deputy General Counsel
|
12/20/04
|
Tamara L. Linde
|
EVP and General Counsel
|
12/19/06
|
Kristen M. Ludecke
|
VP - Federal and State Governmental Affairs
|
02/22/10
|
Shahid Malik
|
President - Energy Resources & Trade (ER&T)
|
12/5/11
|
Christine T. Neely
|
VP - Procurement
|
9/30/13
|
Margaret M. Pego
|
SVP - Human Resources & CHRO
|
12/20/04
|
Sheila J. Rostiac
|
VP - Total Rewards & Talent Management
|
08/20/12
|
Joseph Santamaria
|
VP - Chief Information & Digital Officer
|
10/29/12
|
Richard T. Thigpen
|
SVP Corporate Citizenship
|
3/26/07
|
NAME
|
TITLE
|
PARTICIPATION DATE
|
Ralph Izzo
|
Chairman of the Board, President and CEO
|
12/15/08
|
Ralph A. LaRossa
|
President & COO, PSEG Power LLC
|
10/17/06
|
NAME
|
TITLE
|
PARTICIPATION DATE
|
Joseph F. Accardo, Jr.
|
VP Regulatory & Deputy General Counsel
|
11/19/2018
|
Karen S. Bassin-Reif
|
VP Renewables and Energy Solutions (PSE&G)
|
7/2/18
|
John A. Bridges
|
VP Electric Operations
|
12/21/15
|
David F. Caffery
|
VP Gas Supply
|
3/6/17
|
Eric Carr
|
VP Hope Creek - PSEG Nuclear
|
10/3/16
|
Brian J. Clark
|
VP Construction
|
8/29/16
|
Karen Cleeve
|
VP Corporate Communications
|
8/9/17
|
Gregory C. Dunlap
|
VP Customer Operations - PSE&G
|
7/14/14 Participation ends on April 13, 2019 in connection with retirement
|
Daniel Eichhorn
|
President & COO, PSEG LI
|
10/2/17
|
Aaron T. Ford
|
VP Corporate Security & Claims
|
11/18/15
|
M. Courtney McCormick
|
VP Internal Auditing Services
|
3/31/14
|
Charles V. McFeaters
|
VP Salem - PSEG Nuclear
|
10/3/16
|
Clifford Pardo
|
VP & Assistant Controller - Tax
|
1/1/18
|
Timothy P. Pellegrin
|
VP Finance - Power & Merger & Acquisitions
|
10/9/17
|
Laurent C. Pommier
|
VP Risk Management and Chief Risk Officer
|
7/14/14
|
Peter P. Sena III
|
President & CNO, PSEG Nuclear
|
3/21/16
|
1.1
|
“
Administrator
” shall mean the person or persons appointed by the Committee to perform such plan administrative duties as are delegated by the Committee.
|
1.4
|
“
Code
” shall mean the Internal Revenue Code of 1986, as amended. Any reference to the Code shall include the regulations issued thereunder.
|
1.5
|
“
Committee
” shall mean the Organization and Compensation Committee of the Board of Directors.
|
1.7
|
“
Deferral Election
” shall mean the forms (including electronic forms) by which an LTIP Participant makes their election to defer the receipt of shares underlying the grant of Restricted Stock Units and Performance Stock Units.
|
1.8
|
“
Deferral Plan
” shall mean the Public Service Enterprise Group Incorporated Equity Deferral Plan.
|
1.9
|
“
Effective Date
” of the Equity Plan, as originally adopted, is November 1, 2011. The Deferral Plan is amended and restated effective January 1, 2019.
|
1.10
|
“
ERISA
” shall mean the Employee Retirement Income Security Act of 1974, as amended. Any reference to ERISA shall include the regulations issued thereunder.
|
1.11
|
“
LTIP
” shall mean the Public Service Enterprise Group Incorporated 2004 Long-Term Incentive Plan.
|
1.12
|
“
LTIP Participant
” shall mean an employee of the Company who is an Officer (as defined by the Company) and who is a participant in the LTIP.
|
1.13
|
“
Participant
” shall mean an LTIP Participant who has made a Deferral Election to defer the receipt of shares underlying Restricted Stock Unit awards or Performance Stock Unit awards granted under the LTIP.
|
1.14
|
“
Termination of Employment
” shall have the same meaning as such term has under the Supplemental Executive Retirement Income Plan for Non-Represented Employees of Public Service Enterprise Group Incorporated and Its Affiliates (“SERP”). Whether a Termination of Employment has occurred shall be based on the facts and circumstances and determined in accordance with Section 409A.
|
(a)
|
This Section 3.1 shall apply to Restricted Stock Unit awards granted after the Effective Date of the Deferral Plan.
|
(b)
|
An LTIP Participant may elect to defer the receipt of all or a portion of the shares attributable to the underlying Restricted Stock Unit awards by completing and submitting a Deferral Election.
|
(c)
|
An LTIP Participant must make their Deferral Election under this Section 3.1 no later than December 31 of the calendar year prior to the calendar year for which the Restricted Stock Unit award relates (or such earlier date that the Administrator may specify). For example, on December 20, 2011, an LTIP Participant receives a Restricted Stock Unit award attributable to the 2012 Plan Year. The LTIP Participant must make a Deferral Election to defer the receipt of the shares underlying the Restricted Stock award no later than December 31, 2011 (or such earlier date that the Administrator may specify).
|
(d)
|
Notwithstanding Section 3.1(c), in the case of an Officer who first becomes eligible to participate in the LTIP after the beginning of the Plan Year and receives a Restricted Stock Unit award and who has not been a participant in a nonqualified deferred compensation plan that is required to be aggregated with the Deferral Plan under Section 409A of the Code, such Officer must file a
|
(e)
|
An LTIP Participant Deferral Election must specify whether they elect to defer all or a portion (and what portion) of the shares underlying the Restricted Stock Unit award. The LTIP Participant’s election must be in whole percentages from 10% to 100%. The percentage of shares that will be deferred is based on the number of shares awarded.
|
(f)
|
The LTIP Participant must also elect the deferral period, subject to Section 4. An LTIP Participant may elect to defer receipt of all or a portion of the shares underlying the Restricted Stock Unit award:
|
(i)
|
To a date occurring between the third anniversary and the fifteenth anniversary of the date that the shares otherwise would have been distributed to the Participant if they had not been deferred under the Deferral Plan;
|
(g)
|
Effective for Restricted Stock Unit awards relating to 2019 and subsequent Plan Years, to the extent permitted by the Administrator, a LTIP Participant may elect to have the shares underlying such award distributed in a lump sum or annual installments over a three to fifteen year period.
|
(h)
|
An LTIP Participant’s Deferral Election to defer the receipt of shares underlying the Restricted Stock Unit award is irrevocable for that grant. Such a Deferral Election shall not apply to future grants of Restricted Stock Units.
|
(a)
|
This Section 3.2 shall apply to Performance Stock Unit awards granted after the Effective Date of the Equity Deferral Plan. Notwithstanding the foregoing, Section 3.2(h) shall apply to Performance Stock Units awards granted before the Effective Date for the 2010 and 2011 Plan Years.
|
(b)
|
Each LTIP Participant may elect to defer the receipt of all or a portion of the shares attributable to underlying Performance Stock Unit awards by completing and submitting a Deferral Election.
|
(c)
|
A must make their Deferral Election under this Section 3.2 no later than December 31 of the calendar year prior to the calendar year for which the Performance Stock Unit award relates (or such earlier date that the Administrator may specify). For example, on December 20, 2011, an Employee receives a Performance Stock Unit award attributable to the 2012 Plan Year. The Employee must make a Deferral Election to defer the receipt of the shares underlying the
|
(d)
|
Notwithstanding Section 3.1(c), in the case of an Officer who first becomes eligible
to
participate in the LTIP after the beginning of the Plan Year and receives a Performance Stock Unit award and who has not been a participant in a nonqualified deferred compensation plan that is required to be aggregated with the Deferral Plan under Section 409A of the Code, such Officer must file a Deferral Election within thirty (30) days of the date that the Officer first becomes eligible to participate in the LTIP (for the avoidance of any doubt, the Officer is not eligible until the award is granted under the LTIP).
|
(e)
|
An LTIP Participant’s Deferral election to defer the receipt of shares underlying the grant of Performance Stock Units is irrevocable for that grant. Such an election shall not apply to future grants of Performance Stock Units.
|
(f)
|
An LTIP Participant’s Deferral Election must specify whether they elect to defer all or a portion (and what portion) of the shares underlying the Performance Stock Unit award. The LTIP Participant’s election must be in whole percentages from 10% to 100%. The percentage of shares that will be deferred is based on the number of shares awarded.
|
(g)
|
The LTIP Participant must also elect the deferral period, subject to Section 4. An LTIP Participant may elect to defer receipt of the shares underlying the Performance Restricted Stock Unit award:
|
(i)
|
To a date occurring between the third anniversary and the fifteenth anniversary of the date that the shares otherwise would have been distributed to the Participant if they had not been deferred under the Deferral Plan;
|
(h)
|
Effective for Performance Stock Unit awards relating to 2019 and subsequent Plan Years, to the extent permitted by the Administrator, a LTIP Participant may elect to have the shares underlying such award distributed in a lump sum or annual installments over a three to fifteen year period.
|
(i)
|
For the 2010 and 2011 Plan Year, an LTIP Participant may elect to defer the receipt of the shares underlying the Performance Stock Unit award by making a Deferral Election no later than December 31, 2011 (or such earlier date that the Administrator may specify). An election under this Section 3.2(h) shall be irrevocable.
|
(j)
|
An Employee may make a Deferral Election pursuant to Section 3.2(h) provided that such Employee performs services continuously from the later of the beginning of the performance period specified in the Performance Stock Unit
|
(a)
|
Participants may, by notice, in the manner prescribed by the Administrator, make changes to their prior Deferral Elections as long as (A) any such new election is made at least one year prior to the date that the commencement of the distribution would otherwise have occurred and (B) the revised commencement date is at least five years later than the date that the commencement of the distribution would otherwise have occurred. Installment payments shall be treated as one payment.
|
(b)
|
This Section 3.2 shall not apply to Restricted Stock Awards or Performance Awards relating to the 2019 Plan Year.
|
3.4
|
Changes to Deferral Elections for Awards Relating to the 2012-2018 Plan Years.
|
(a)
|
Special One-Time Election - Participants may, by notice, in the manner prescribed by the Administrator prior to December 31, 2018, make a one-time election to change a Deferral Election for the awards relating to any one or more
of the 2012-2018 Plan Years in accordance with Section 3.4(b).
|
(b)
|
A Participant may elect to change a Deferral Election pursuant to Section 3.4(a) as long as (1) any such new election is made at least one year prior to the date that the commencement of the distribution would otherwise have occurred and (2) the revised commencement date is at least five years later than the date that the commencement of the distribution would otherwise have occurred. Installment payments shall be treated as one payment.
|
4.1
|
Deferral Period
. If the Participant elects on the Deferral Election to have the shares underlying the Restricted Stock Unit award and/or Performance Stock Unit award deferred for a specified period, the shares shall be distributed, or commence to be distributed, within 30 days of the end of specified period as elected by the Participant. For example, if a Participant elects to have the shares underlying the 2013 grant of Restricted Stock Units which vest on December 31, 2015 deferred for 3 years, the shares shall be distributed within 30 days following December 31, 2018. If the Participant incurs a Termination of Employment prior to the end of the elected deferral period, the shares underlying the Restricted Stock Unit award and/or Performance Stock Unit award shall be distributed, or commence to be distributed, within 30 days following the end of the elected deferral period (the Termination of Employment is not a distribution event under this Section 4.1).
|
4.2
|
Termination of Employment.
In the event that a Participant elects on the Election Form to have their shares underlying the Restricted Stock Unit award and/or Performance Stock Unit award distributed, or commence to be distributed, upon Termination of Employment, such shares shall be distributed, or commenced to be distributed, to the Participant within 30 days of their Termination of Employment. Notwithstanding the foregoing, in the event that the Participant is a Specified Employee (as such term is defined in the SERP), distribution, or commencement, of the shares underlying the Restricted Stock Unit award and/or Performance Stock Unit award shall occur within 30 days following the date that is six months after the date of the Participant’s Termination of Employment.
|
4.3
|
Earlier of End of Deferral Period or Termination of Employment.
If the Participant elects on the Deferral Election to have the shares underlying the Restricted Stock Unit award and/or Performance Stock Unit award deferred until the earlier of the end of a specified period or Termination of Employment, the shares shall be distributed, or commenced to be distributed, within 30 days of the earlier of the end of specified period or Termination of Employment. Notwithstanding the foregoing, in the event that the Participant is a Specified Employee (as such term is defined in the SERP) and distribution of the shares will be made upon Termination of Employment, distribution, or commencement, shall occur within 30 days following the date that is six after the date of the Participant’s Termination of Employment.
|
4.4
|
Death of a Participant.
In the event that a Participant dies prior to the date that all shares underlying the Restricted Stock Unit award and/or Performance Stock Unit award have been distributed (whether because payment has not yet begun or installments have not been completed), such shares shall be distributed to the Participant’s estate within 30 days of the date of their death.
|
4.5
|
Change in Control.
In the event a Change in Control occurs prior to the date that the Participant elects on the Election Form to have shares underlying the Restricted Stock Unit award and/or Performance Stock Unit award distributed, such shares shall be distributed in a lump sum to the Participant within 30 days of the Change in Control provided that the Change in Control constitutes a change in control under Section 409A. If the Change in Control does not constitute a change in control under Section 409A, the shares underlying the Restricted Stock Unit award and/or Performance Stock Unit award shall be distributed, or commence to be distributed, in accordance with Sections 4.1 through 4.4 of the Deferral Plan.
|
4.6
|
Installments.
If a Participant elects distribution in the form of instalment payments, the installments shall be calculated using the declining account balance method. The distribution of each installment, except the last installment, shall be in whole shares (rounded down). Any fractional shares shall be distributed with the last installment.
|
6.1
|
Deferred Shares
. The shares underlying the Participant’s Restricted Stock Unit award and/or Performance Stock Unit award that are deferred under the Deferral Plan shall be issued under the LTIP and held in a rabbi trust until such shares are distributed.
|
6.2
|
Dividends and Voting.
The dividends attributable to the shares underlying the Participant’s Restricted Stock Unit award and Performance Stock Unit award shall be reinvested in company stock and distributed to the Participant when such shares are paid. A Participant shall not be permitted to direct the trustee of the rabbi trust to vote the shares underlying the Participant’s Restricted Stock Unit award and/or Performance Stock Unit award that are deferred under the Deferral Plan.
|
6.3
|
Stock-Splits and Stock Dividends
. The number of shares subject to the Deferral Plan and outstanding awards will be adjusted to reflect any change in corporate capitalization, such as a stock-split, stock dividend, corporate transaction and similar events
|
6.4
|
Administration
. The Deferral Plan shall be administered by the Committee. The Committee may appoint an Administrator to administer the Deferral Plan.
|
6.5
|
Amendment or Termination of the Deferral Plan
. The Board of Directors may amend the Deferral Plan as it shall deem advisable. The Board of Directors may, in its discretion, terminate the Deferral Plan at any time and pay installments out in a lump sum even when installments have already begun and/or the Participant has terminated employment.
|
6.6
|
Unsecured Creditor Status and Assignment Prohibition
. No Participant, beneficiary or any other person shall have any interest in any particular assets of the Company by reason of the right to receive the shares that are deferred under the Deferral Plan and any such Participant, beneficiary or other person shall have only the rights of a general unsecured creditor with respect to any deferred shares.
|
6.7
|
Income Taxes
. On the distribution date of the deferred shares, the Company shall retain or sell, without notice, a sufficient number of shares to cover the amount needed to fulfill its withholding requirements for Federal, state and local income taxes, and other taxes.
|
6.8
|
Successors of the Company
. The rights and obligations of the Company under the Deferral Plan shall inure to the benefit of, and shall be binding upon, the successors and assigns of the Company. In addition to any obligations imposed by law upon any successor to the Company, the Company shall require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business or assets of the Company, to expressly assume and agree to perform the requirements set forth in the Deferral Plan.
|
6.9
|
Gender, Singular and Plural
. All pronouns and any variations thereof shall be deemed to refer to the masculine, feminine, or neuter, as the identity of the person or persons may require. As the context may require, the singular may be read as the plural and the plural as the singular.
|
6.10
|
Governing Law
. In the event any provision of, or legal issue relating to, the Deferral Plan is not fully preempted by federal law, such issue or provision shall be governed by the laws of the State of New Jersey without reference to conflicts of law principles.
|
1.
|
Officer Stock Ownership & Retention Policy
|
2.
|
Responsibilities of Corporate Officers and Directors
|
3.
|
Confidentiality, Non-Competition and Non-Solicitation Agreement
|
4.
|
Arbitration Agreement
|
Name
|
|
Ownership %
|
|
State of Incorporation
|
|
|
|
|
|
Public Service Electric and Gas Company
|
|
100
|
|
New Jersey
|
PSEG Power LLC
|
|
100
|
|
Delaware
|
PSEG Fossil LLC
|
|
100
|
|
Delaware
|
PSEG Nuclear LLC
|
|
100
|
|
Delaware
|
PSEG Energy Resources & Trade LLC
|
|
100
|
|
Delaware
|
|
|
|
|
|
1.
|
I have reviewed this Annual Report on Form 10-K 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:
|
February 27, 2019
|
/s/ Ralph Izzo
|
|
|
Ralph Izzo
|
|
|
Public Service Enterprise Group Incorporated
|
|
|
Chief Executive Officer
|
1.
|
I have reviewed this Annual Report on Form 10-K 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:
|
February 27, 2019
|
/s/ Daniel J. Cregg
|
|
|
Daniel J. Cregg
|
|
|
Public Service Enterprise Group Incorporated
|
|
|
Chief Financial Officer
|
1.
|
I have reviewed this Annual Report on Form 10-K 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:
|
February 27, 2019
|
/s/ Ralph Izzo
|
|
|
Ralph Izzo
|
|
|
Public Service Electric and Gas Company
|
|
|
Chief Executive Officer
|
1.
|
I have reviewed this Annual Report on Form 10-K 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:
|
February 27, 2019
|
/s/ Daniel J. Cregg
|
|
|
Daniel J. Cregg
|
|
|
Public Service Electric and Gas Company
|
|
|
Chief Financial Officer
|
1.
|
I have reviewed this Annual Report on Form 10-K 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:
|
February 27, 2019
|
/s/ Ralph Izzo
|
|
|
Ralph Izzo
|
|
|
PSEG Power LLC
|
|
|
Chief Executive Officer
|
1.
|
I have reviewed this Annual Report on Form 10-K 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:
|
February 27, 2019
|
/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
|
February 27, 2019
|
/s/ Daniel J. Cregg
|
Daniel J. Cregg
|
Public Service Enterprise Group Incorporated
|
Chief Financial Officer
|
February 27, 2019
|
/s/ Ralph Izzo
|
Ralph Izzo
|
Public Service Electric and Gas Company
|
Chief Executive Officer
|
February 27, 2019
|
/s/ Daniel J. Cregg
|
Daniel J. Cregg
|
Public Service Electric and Gas Company
|
Chief Financial Officer
|
February 27, 2019
|
/s/ Ralph Izzo
|
Ralph Izzo
|
PSEG Power LLC
|
Chief Executive Officer
|
February 27, 2019
|
/s/ Daniel J. Cregg
|
Daniel J. Cregg
|
PSEG Power LLC
|
Chief Financial Officer
|
February 27, 2019
|