Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Oct. 15, 2013 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 30-Sep-13 | |
Document Fiscal Year Focus | 2013 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | PEG | |
Entity Registrant Name | PUBLIC SERVICE ENTERPRISE GROUP INC | |
Entity Central Index Key | 788784 | |
Current Fiscal Year End Date | -19 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 505,861,262 | |
Power [Member] | ||
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 30-Sep-13 | |
Document Fiscal Year Focus | 2013 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | PSEG POWER LLC | |
Entity Central Index Key | 1158659 | |
Current Fiscal Year End Date | -19 | |
Entity Filer Category | Non-accelerated Filer | |
PSE And G [Member] | ||
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 30-Sep-13 | |
Document Fiscal Year Focus | 2013 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | PUBLIC SERVICE ELECTRIC & GAS CO | |
Entity Central Index Key | 81033 | |
Current Fiscal Year End Date | -19 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 132,450,344 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements Of Operations (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, except Share data in Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Operating Revenues | $2,554 | $2,402 | $7,650 | $7,375 |
Operating Expenses [Abstract] | ||||
Energy Costs | 801 | 879 | 2,711 | 2,819 |
Operation and Maintenance | 713 | 619 | 2,069 | 1,876 |
Depreciation and Amortization | 313 | 286 | 886 | 797 |
Taxes Other Than Income Taxes | 15 | 24 | 50 | 73 |
Total Operating Expenses | 1,842 | 1,808 | 5,716 | 5,565 |
OPERATING INCOME | 712 | 594 | 1,934 | 1,810 |
Income from Equity Method Investments | 4 | 7 | 9 | 9 |
Other Income | 59 | 121 | 172 | 216 |
Other Deductions | -12 | -26 | -54 | -61 |
Other-Than-Temporary Impairments | -3 | -2 | -7 | -14 |
Interest Expense | -100 | -106 | -303 | -310 |
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 660 | 588 | 1,751 | 1,650 |
Income Tax Expense | -270 | -241 | -708 | -599 |
Net Income | 390 | 347 | 1,043 | 1,051 |
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING (THOUSANDS): | ||||
BASIC | 505,858 | 505,914 | 505,900 | 505,942 |
DILUTED | 507,694 | 507,111 | 507,433 | 507,037 |
EARNINGS PER SHARE: | ||||
INCOME FROM CONTINUING OPERATIONS, BASIC | $0.77 | $0.69 | $2.06 | $2.08 |
NET INCOME | $0.77 | $0.69 | $2.06 | $2.08 |
INCOME FROM CONTINUING OPERATIONS, DILUTED | $0.77 | $0.68 | $2.06 | $2.07 |
NET INCOME | $0.77 | $0.68 | $2.06 | $2.07 |
DIVIDENDS PAID PER SHARE OF COMMON STOCK | $0.36 | $0.36 | $1.08 | $1.06 |
Power [Member] | ||||
Operating Revenues | 1,169 | 1,038 | 3,806 | 3,584 |
Operating Expenses [Abstract] | ||||
Energy Costs | 430 | 456 | 1,786 | 1,725 |
Operation and Maintenance | 304 | 255 | 866 | 780 |
Depreciation and Amortization | 66 | 60 | 195 | 175 |
Total Operating Expenses | 800 | 771 | 2,847 | 2,680 |
OPERATING INCOME | 369 | 267 | 959 | 904 |
Other Income | 45 | 104 | 127 | 171 |
Other Deductions | -11 | -20 | -49 | -52 |
Other-Than-Temporary Impairments | -3 | -2 | -7 | -14 |
Interest Expense | -26 | -35 | -85 | -97 |
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 374 | 314 | 945 | 912 |
Income Tax Expense | -153 | -133 | -383 | -374 |
Net Income | 221 | 181 | 562 | 538 |
PSE And G [Member] | ||||
Operating Revenues | 1,666 | 1,683 | 5,084 | 5,029 |
Operating Expenses [Abstract] | ||||
Energy Costs | 661 | 756 | 2,208 | 2,380 |
Operation and Maintenance | 408 | 366 | 1,204 | 1,092 |
Depreciation and Amortization | 236 | 216 | 658 | 594 |
Taxes Other Than Income Taxes | 15 | 24 | 50 | 73 |
Total Operating Expenses | 1,320 | 1,362 | 4,120 | 4,139 |
OPERATING INCOME | 346 | 321 | 964 | 890 |
Other Income | 13 | 16 | 41 | 39 |
Other Deductions | -1 | -6 | -3 | -8 |
Interest Expense | -75 | -73 | -223 | -220 |
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 283 | 258 | 779 | 701 |
Income Tax Expense | -115 | -103 | -311 | -248 |
Net Income | $168 | $155 | $468 | $453 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements Of Comprehensive Income (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Net Income | $390 | $347 | $1,043 | $1,051 |
Other Comprehensive Income (Loss), net of tax | ||||
Unrealized Gains (Losses) on Available-for-Sale Securities, net of tax (expense) benefit | 16 | -10 | 27 | 12 |
Unrealized Gains (Losses) on Cash Flow Hedges, net of tax (expense) benefit | -1 | -10 | -5 | -20 |
Pension/OPEB adjustment, net of tax (expense) benefit | 9 | 8 | 28 | 23 |
Other Comprehensive Income (Loss), net of tax | 24 | -12 | 50 | 15 |
COMPREHENSIVE INCOME | 414 | 335 | 1,093 | 1,066 |
Power [Member] | ||||
Net Income | 221 | 181 | 562 | 538 |
Other Comprehensive Income (Loss), net of tax | ||||
Unrealized Gains (Losses) on Available-for-Sale Securities, net of tax (expense) benefit | 17 | -11 | 30 | 11 |
Unrealized Gains (Losses) on Cash Flow Hedges, net of tax (expense) benefit | -1 | -11 | -6 | -21 |
Pension/OPEB adjustment, net of tax (expense) benefit | 8 | 7 | 25 | 21 |
Other Comprehensive Income (Loss), net of tax | 24 | -15 | 49 | 11 |
COMPREHENSIVE INCOME | 245 | 166 | 611 | 549 |
PSE And G [Member] | ||||
Net Income | 168 | 155 | 468 | 453 |
Other Comprehensive Income (Loss), net of tax | ||||
Unrealized Gains (Losses) on Available-for-Sale Securities, net of tax (expense) benefit | 0 | 1 | -1 | 0 |
Other Comprehensive Income (Loss), net of tax | 0 | |||
COMPREHENSIVE INCOME | $168 | $156 | $467 | $453 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements Of Comprehensive Income (Parenthetical) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Unrealized Gains (Losses) on Available-for-Sale Securities, tax | ($16) | $5 | ($27) | ($16) |
Unrealized Gains (Losses) on Cash Flow Hedges, tax | 1 | 8 | 4 | 14 |
Pension/OPEB adjustment, tax | -6 | -5 | -20 | -16 |
Power [Member] | ||||
Unrealized Gains (Losses) on Available-for-Sale Securities, tax | -18 | 6 | -29 | -16 |
Unrealized Gains (Losses) on Cash Flow Hedges, tax | 1 | 8 | 4 | 14 |
Pension/OPEB adjustment, tax | -6 | -4 | -17 | -14 |
PSE And G [Member] | ||||
Unrealized Gains (Losses) on Available-for-Sale Securities, tax | $0 | ($1) | $1 | $0 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | ||||
CURRENT ASSETS | ||||
Cash and Cash Equivalents | $448 | $379 | ||
Accounts Receivable, net of allowances in 2013 and 2012, respectively | 1,069 | 1,069 | ||
Tax Receivable | 225 | 227 | ||
Unbilled Revenues | 211 | 314 | ||
Fuel | 599 | 583 | ||
Materials and Supplies, net | 450 | 422 | ||
Prepayments | 210 | 283 | ||
Derivative Contracts | 107 | [1] | 138 | [1] |
Deferred Income Taxes | 31 | 49 | ||
Regulatory Assets | 348 | 349 | ||
Other | 43 | 56 | ||
Total Current Assets | 3,741 | 3,869 | ||
PROPERTY, PLANT AND EQUIPMENT | 29,206 | 27,402 | ||
Less: Accumulated Depreciation and Amortization | -8,127 | -7,666 | ||
Net Property, Plant and Equipment | 21,079 | 19,736 | ||
NONCURRENT ASSETS | ||||
Regulatory Assets | 3,519 | 3,830 | ||
Regulatory Assets of Variable Interest Entities (VIEs) | 532 | 713 | ||
Long-Term Investments | 1,320 | 1,324 | ||
Nuclear Decommissioning Trust (NDT) Fund | 1,635 | 1,540 | ||
Other Special Funds | 181 | 191 | ||
Goodwill | 16 | 16 | ||
Other Intangibles | 52 | 34 | ||
Derivative Contracts | 184 | [1] | 153 | [1] |
Restricted Cash of VIEs | 23 | 23 | ||
Other | 328 | 296 | ||
Total Noncurrent Assets | 7,790 | 8,120 | ||
Total Assets | 32,610 | 31,725 | ||
CURRENT LIABILITIES | ||||
Long-Term Debt Due Within One Year | 775 | 1,026 | ||
Securitization Debt of VIEs Due Within One Year | 235 | 226 | ||
Commercial Paper and Loans | 0 | 263 | ||
Accounts Payable | 1,024 | 1,304 | ||
Derivative Contracts | 36 | [1] | 46 | [1] |
Accrued Interest | 114 | 91 | ||
Accrued Taxes | 83 | 17 | ||
Deferred Income Taxes | 48 | 72 | ||
Clean Energy Program | 185 | 153 | ||
Obligation to Return Cash Collateral | 118 | 122 | ||
Regulatory Liabilities | 171 | 67 | ||
Other | 446 | 390 | ||
Total Current Liabilities | 3,235 | 3,777 | ||
NONCURRENT LIABILITIES | ||||
Deferred Income Taxes and Investment Tax Credits (ITC) | 6,807 | 6,542 | ||
Regulatory Liabilities | 213 | 209 | ||
Regulatory Liabilities of VIEs | 11 | 10 | ||
Asset Retirement Obligations | 653 | 627 | ||
Other Postretirement Benefit (OPEB) Costs | 1,274 | 1,285 | ||
Accrued Pension Costs | 710 | 876 | ||
Environmental Costs | 431 | 537 | ||
Derivative Contracts | 163 | [1] | 122 | [1] |
Long-Term Accrued Taxes | 183 | 164 | ||
Other | 115 | 108 | ||
Total Noncurrent Liabilities | 10,560 | 10,480 | ||
COMMITMENTS AND CONTINGENT LIABILITIES (See Note 9) | ||||
LONG-TERM DEBT | ||||
Long-Term Debt | 7,134 | 6,148 | ||
Securitization Debt of VIEs | 326 | 496 | ||
Project Level, Non-Recourse Debt | 16 | 43 | ||
Total Long-Term Debt | 7,476 | 6,687 | ||
STOCKHOLDER'S EQUITY | ||||
Common Stock | 4,852 | 4,833 | ||
Treasury Stock, at cost | -615 | -607 | ||
Retained Earnings | 7,439 | 6,942 | ||
Accumulated Other Comprehensive Income (Loss) | -338 | -388 | ||
Total Common Stockholders' Equity | 11,338 | 10,780 | ||
Noncontrolling Interest | 1 | 1 | ||
Total Stockholder's Equity | 11,339 | 10,781 | ||
Total Capitalization | 18,815 | 17,468 | ||
TOTAL LIABILITIES AND CAPITALIZATION | 32,610 | 31,725 | ||
Power [Member] | ||||
CURRENT ASSETS | ||||
Cash and Cash Equivalents | 9 | 7 | ||
Accounts Receivable, net of allowances in 2013 and 2012, respectively | 211 | 269 | ||
Accounts Receivable-Affiliated Companies, net | 34 | 340 | ||
Short-Term Loan to Affiliate | 417 | 574 | ||
Fuel | 599 | 583 | ||
Materials and Supplies, net | 329 | 307 | ||
Prepayments | 16 | 17 | ||
Derivative Contracts | 72 | [1] | 118 | [1] |
Deferred Income Taxes | 3 | 0 | ||
Other | 0 | 19 | ||
Total Current Assets | 1,690 | 2,234 | ||
PROPERTY, PLANT AND EQUIPMENT | 10,035 | 9,697 | ||
Less: Accumulated Depreciation and Amortization | -2,973 | -2,679 | ||
Net Property, Plant and Equipment | 7,062 | 7,018 | ||
NONCURRENT ASSETS | ||||
Nuclear Decommissioning Trust (NDT) Fund | 1,635 | 1,540 | ||
Other Special Funds | 38 | 36 | ||
Goodwill | 16 | 16 | ||
Other Intangibles | 52 | 34 | ||
Derivative Contracts | 89 | [1] | 49 | [1] |
Other | 139 | 105 | ||
Total Noncurrent Assets | 1,969 | 1,780 | ||
Total Assets | 10,721 | 11,032 | ||
CURRENT LIABILITIES | ||||
Long-Term Debt Due Within One Year | 0 | 300 | ||
Accounts Payable | 404 | 498 | ||
Derivative Contracts | 36 | [1] | 46 | [1] |
Accrued Interest | 37 | 26 | ||
Deferred Income Taxes | 0 | 16 | ||
Other | 109 | 81 | ||
Total Current Liabilities | 586 | 967 | ||
NONCURRENT LIABILITIES | ||||
Deferred Income Taxes and Investment Tax Credits (ITC) | 1,732 | 1,575 | ||
Asset Retirement Obligations | 385 | 369 | ||
Other Postretirement Benefit (OPEB) Costs | 230 | 221 | ||
Accrued Pension Costs | 225 | 272 | ||
Derivative Contracts | 23 | [1] | 15 | [1] |
Long-Term Accrued Taxes | 50 | 50 | ||
Other | 90 | 84 | ||
Total Noncurrent Liabilities | 2,735 | 2,586 | ||
COMMITMENTS AND CONTINGENT LIABILITIES (See Note 9) | ||||
LONG-TERM DEBT | ||||
Total Long-Term Debt | 2,041 | 2,040 | ||
STOCKHOLDER'S EQUITY | ||||
Contributed Capital | 2,028 | 2,028 | ||
Basis Adjustment | -986 | -986 | ||
Retained Earnings | 4,596 | 4,725 | ||
Accumulated Other Comprehensive Income (Loss) | -279 | -328 | ||
Total Stockholder's Equity | 5,359 | 5,439 | ||
TOTAL LIABILITIES AND CAPITALIZATION | 10,721 | 11,032 | ||
PSE And G [Member] | ||||
CURRENT ASSETS | ||||
Cash and Cash Equivalents | 253 | 116 | ||
Accounts Receivable, net of allowances in 2013 and 2012, respectively | 839 | 783 | ||
Accounts Receivable-Affiliated Companies, net | 94 | 0 | ||
Unbilled Revenues | 211 | 314 | ||
Materials and Supplies, net | 118 | 114 | ||
Prepayments | 138 | 29 | ||
Derivative Contracts | 19 | 5 | ||
Deferred Income Taxes | 31 | 49 | ||
Regulatory Assets | 348 | 349 | ||
Other | 24 | 24 | ||
Total Current Assets | 2,075 | 1,783 | ||
PROPERTY, PLANT AND EQUIPMENT | 18,503 | 17,006 | ||
Less: Accumulated Depreciation and Amortization | -4,916 | -4,726 | ||
Net Property, Plant and Equipment | 13,587 | 12,280 | ||
NONCURRENT ASSETS | ||||
Regulatory Assets | 3,519 | 3,830 | ||
Regulatory Assets of Variable Interest Entities (VIEs) | 532 | 713 | ||
Long-Term Investments | 356 | 348 | ||
Other Special Funds | 41 | 61 | ||
Derivative Contracts | 69 | 62 | ||
Restricted Cash of VIEs | 23 | 23 | ||
Other | 128 | 123 | ||
Total Noncurrent Assets | 4,668 | 5,160 | ||
Total Assets | 20,330 | 19,223 | ||
CURRENT LIABILITIES | ||||
Long-Term Debt Due Within One Year | 775 | 725 | ||
Securitization Debt of VIEs Due Within One Year | 235 | 226 | ||
Commercial Paper and Loans | 0 | 263 | ||
Accounts Payable | 473 | 630 | ||
Accounts Payable-Affiliated Companies, net | 0 | 73 | ||
Accrued Interest | 77 | 65 | ||
Deferred Income Taxes | 55 | 60 | ||
Clean Energy Program | 185 | 153 | ||
Obligation to Return Cash Collateral | 118 | 122 | ||
Regulatory Liabilities | 171 | 67 | ||
Other | 306 | 269 | ||
Total Current Liabilities | 2,395 | 2,653 | ||
NONCURRENT LIABILITIES | ||||
Deferred Income Taxes and Investment Tax Credits (ITC) | 4,354 | 4,223 | ||
Regulatory Liabilities | 213 | 209 | ||
Regulatory Liabilities of VIEs | 11 | 10 | ||
Asset Retirement Obligations | 260 | 250 | ||
Other Postretirement Benefit (OPEB) Costs | 989 | 1,011 | ||
Accrued Pension Costs | 360 | 463 | ||
Environmental Costs | 380 | 486 | ||
Derivative Contracts | 140 | 107 | ||
Long-Term Accrued Taxes | 48 | 32 | ||
Other | 46 | 38 | ||
Total Noncurrent Liabilities | 6,801 | 6,829 | ||
COMMITMENTS AND CONTINGENT LIABILITIES (See Note 9) | ||||
LONG-TERM DEBT | ||||
Long-Term Debt | 5,066 | 4,070 | ||
Securitization Debt of VIEs | 326 | 496 | ||
Total Long-Term Debt | 5,392 | 4,566 | ||
STOCKHOLDER'S EQUITY | ||||
Common Stock | 892 | 892 | ||
Contributed Capital | 520 | 420 | ||
Basis Adjustment | 986 | 986 | ||
Retained Earnings | 3,343 | 2,875 | ||
Accumulated Other Comprehensive Income (Loss) | 1 | 2 | ||
Total Stockholder's Equity | 5,742 | 5,175 | ||
Total Capitalization | 11,134 | 9,741 | ||
TOTAL LIABILITIES AND CAPITALIZATION | $20,330 | $19,223 | ||
[1] | Substantially all of Power's and PSEG's derivative instruments are contracts subject to master netting agreements. Contracts not subject to master netting or similar agreements are immaterial and did not have any collateral posted or received as of September 30, 2013 and December 31, 2012. PSE&G does not have any derivative contracts subject to master netting or similar agreements. |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, except Share data, unless otherwise specified | ||
Accounts Receivable, allowances | $57 | $56 |
Common Stock, issued | 533,556,660 | 533,556,660 |
Common Stock, authorized | 1,000,000,000 | 1,000,000,000 |
Treasury Stock, Shares | 27,695,398 | 27,664,188 |
PSE And G [Member] | ||
Accounts Receivable, allowances | $57 | $56 |
Common Stock, issued | 132,450,344 | 132,450,344 |
Common Stock, outstanding | 132,450,344 | 132,450,344 |
Common Stock, authorized | 150,000,000 | 150,000,000 |
Condensed_Consolidated_Stateme3
Condensed Consolidated Statements Of Cash Flows (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net Income | $1,043 | $1,051 |
Adjustments to Reconcile Net Income to Net Cash Flows from Operating Activities: | ||
Depreciation and Amortization | 886 | 797 |
Amortization of Nuclear Fuel | 145 | 129 |
Provision for Deferred Income Taxes and ITC | 242 | 221 |
Non-Cash Employee Benefit Plan Costs | 182 | 203 |
Leveraged Lease Income, Adjusted for Rents Received and Deferred Taxes | -7 | -81 |
Net Realized and Unrealized (Gains) Losses on Energy Contracts and Other Derivatives | 3 | 116 |
Change in Accrued Storm Costs | -87 | 5 |
Net Change in Regulatory Assets and Liabilities | 134 | -82 |
Cost of Removal | -66 | -71 |
Net Realized (Gains) Losses and (Income) Expense from NDT Fund | -76 | -107 |
Employee Benefit Plan Funding and Related Payments | -210 | -193 |
Other | 71 | 2 |
Net Change in Certain Current Assets and Liabilities: | ||
Net Change in Tax Receivable | 2 | 16 |
Net Change in Certain Current Assets and Liabilities | 173 | 305 |
Net Cash Provided By (Used In) Operating Activities | 2,435 | 2,311 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Additions to Property, Plant and Equipment | -2,102 | -1,969 |
Proceeds from Sale of Capital Leases and Investments | 42 | 0 |
Proceeds from Sale of Available-for-Sale Securities | 914 | 1,473 |
Investments in Available-for-Sale Securities | -922 | -1,497 |
Other | -20 | -58 |
Net Cash Provided By (Used In) Investing Activities | -2,088 | -2,051 |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Net Change in Commercial Paper and Loans | -263 | 0 |
Issuance of Long-Term Debt | 1,500 | 850 |
Redemption of Long-Term Debt | -750 | -439 |
Redemption of Securitization Debt | -162 | -154 |
Repayments Of Nonrecourse Debt | 0 | -1 |
Cash Dividend Paid on Common Stock | -546 | -538 |
Other | -57 | -32 |
Net Cash Provided By (Used In) Financing Activities | -278 | -314 |
Net Increase (Decrease) In Cash and Cash Equivalents | 69 | -54 |
Cash and Cash Equivalents at Beginning of Period | 379 | 834 |
Cash and Cash Equivalents at End of Period | 448 | 780 |
Supplemental Disclosure of Cash Flow Information: | ||
Income Taxes Paid (Received) | 222 | 109 |
Interest Paid, Net of Amounts Capitalized | 274 | 280 |
Accrued Property, Plant and Equipment Expenditures | 258 | 259 |
Power [Member] | ||
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net Income | 562 | 538 |
Adjustments to Reconcile Net Income to Net Cash Flows from Operating Activities: | ||
Depreciation and Amortization | 195 | 175 |
Amortization of Nuclear Fuel | 145 | 129 |
Provision for Deferred Income Taxes and ITC | 96 | 189 |
Non-Cash Employee Benefit Plan Costs | 50 | 53 |
Net Realized and Unrealized (Gains) Losses on Energy Contracts and Other Derivatives | 3 | 116 |
Net Realized (Gains) Losses and (Income) Expense from NDT Fund | -76 | -107 |
Employee Benefit Plan Funding and Related Payments | -45 | -40 |
Other | 32 | 5 |
Net Change in Certain Current Assets and Liabilities: | ||
Fuel, Materials and Supplies | -38 | -10 |
Margin Deposit | 17 | -107 |
Accounts Receivable | 69 | 50 |
Accounts Payable | -63 | -31 |
Accounts Receivable/Payable-Affiliated Companies, net | 306 | 193 |
Accrued Interest Payable, Net | 11 | 17 |
Other Current Assets and Liabilities | 20 | 2 |
Net Cash Provided By (Used In) Operating Activities | 1,284 | 1,172 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Additions to Property, Plant and Equipment | -419 | -493 |
Proceeds from Sale of Available-for-Sale Securities | 849 | 1,295 |
Investments in Available-for-Sale Securities | -864 | -1,315 |
Short-Term Loan-Affiliated Company, net | 157 | 17 |
Other | -13 | -10 |
Net Cash Provided By (Used In) Investing Activities | -290 | -506 |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Redemption of Long-Term Debt | -300 | -66 |
Cash Dividend Paid on Common Stock | -690 | -600 |
Other | -2 | -7 |
Net Cash Provided By (Used In) Financing Activities | -992 | -673 |
Net Increase (Decrease) In Cash and Cash Equivalents | 2 | -7 |
Cash and Cash Equivalents at Beginning of Period | 7 | 12 |
Cash and Cash Equivalents at End of Period | 9 | 5 |
Supplemental Disclosure of Cash Flow Information: | ||
Income Taxes Paid (Received) | 107 | 130 |
Interest Paid, Net of Amounts Capitalized | 72 | 73 |
Accrued Property, Plant and Equipment Expenditures | 58 | 84 |
PSE And G [Member] | ||
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net Income | 468 | 453 |
Adjustments to Reconcile Net Income to Net Cash Flows from Operating Activities: | ||
Depreciation and Amortization | 658 | 594 |
Provision for Deferred Income Taxes and ITC | 153 | 131 |
Non-Cash Employee Benefit Plan Costs | 117 | 134 |
Change in Accrued Storm Costs | -87 | 5 |
Net Change in Regulatory Assets and Liabilities | 134 | -82 |
Cost of Removal | -66 | -71 |
Employee Benefit Plan Funding and Related Payments | -147 | -137 |
Other | 23 | -21 |
Net Change in Certain Current Assets and Liabilities: | ||
Accounts Receivable and Unbilled Revenues | 48 | 97 |
Fuel, Materials and Supplies | -4 | -11 |
Prepayments | -109 | -28 |
Net Change in Tax Receivable | 0 | 16 |
Accounts Payable | 3 | -20 |
Accounts Receivable/Payable-Affiliated Companies, net | -171 | -41 |
Other Current Assets and Liabilities | 29 | 22 |
Net Cash Provided By (Used In) Operating Activities | 1,049 | 1,041 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Additions to Property, Plant and Equipment | -1,628 | -1,369 |
Proceeds from Sale of Available-for-Sale Securities | 35 | 73 |
Investments in Available-for-Sale Securities | -16 | -73 |
Solar Loan Investments | -11 | -56 |
Restricted Funds | 0 | 1 |
Net Cash Provided By (Used In) Investing Activities | -1,620 | -1,424 |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Net Change in Short-Term Debt | -263 | 0 |
Issuance of Long-Term Debt | 1,500 | 850 |
Redemption of Long-Term Debt | -450 | -373 |
Redemption of Securitization Debt | -162 | -154 |
Contributed Capital | 100 | 0 |
Other | -17 | -12 |
Net Cash Provided By (Used In) Financing Activities | 708 | 311 |
Net Increase (Decrease) In Cash and Cash Equivalents | 137 | -72 |
Cash and Cash Equivalents at Beginning of Period | 116 | 143 |
Cash and Cash Equivalents at End of Period | 253 | 71 |
Supplemental Disclosure of Cash Flow Information: | ||
Income Taxes Paid (Received) | 174 | -30 |
Interest Paid, Net of Amounts Capitalized | 199 | 205 |
Accrued Property, Plant and Equipment Expenditures | $200 | $175 |
Organization_and_Basis_of_Pres
Organization and Basis of Presentation | 9 Months Ended | |
Sep. 30, 2013 | ||
Organization and Basis of Presentation | Organization and Basis of Presentation | |
Organization | ||
PSEG is a holding company with a diversified business mix within the energy industry. Its operations are primarily in the Northeastern and Mid-Atlantic United States and in other select markets. PSEG’s four principal direct wholly owned subsidiaries are: | ||
• | Power—which is a multi-regional, wholesale energy supply company that integrates its generating asset operations and gas supply commitments with its wholesale energy, fuel supply and energy trading functions through three principal direct wholly owned subsidiaries. Power’s subsidiaries are subject to regulation by the Federal Energy Regulatory Commission (FERC), the Nuclear Regulatory Commission (NRC) and the states in which they operate. | |
• | 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 FERC. PSE&G also invests in solar generation projects and has implemented energy efficiency and demand response programs, which are regulated by the BPU. | |
• | PSEG Energy Holdings L.L.C. (Energy Holdings)—which primarily has investments in leases and solar generation projects through its direct wholly owned subsidiaries. Certain Energy Holdings’ subsidiaries are subject to regulation by the FERC and the states in which they operate. A subsidiary of Energy Holdings has been awarded a contract to manage the transmission and distribution assets of the Long Island Power Authority (LIPA) starting in 2014. | |
• | PSEG Services Corporation (Services)—which provides management, administrative and general services to PSEG and its subsidiaries at cost. | |
Basis of Presentation | ||
The respective financial statements included herein have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (SEC) applicable to Quarterly Reports on Form 10-Q. Certain information and note disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States (GAAP) have been condensed or omitted pursuant to such rules and regulations. These Condensed Consolidated Financial Statements and Notes to Condensed Consolidated Financial Statements (Notes) should be read in conjunction with, and update and supplement matters discussed in, the Annual Report on Form 10-K for the year ended December 31, 2012 and Quarterly Reports on Form 10-Q for the quarters ended March 31, 2013 and June 30, 2013. | ||
The unaudited condensed consolidated financial information furnished herein reflects all adjustments which are, in the opinion of management, necessary to fairly state the results for the interim periods presented. All such adjustments are of a normal recurring nature. All significant intercompany accounts and transactions are eliminated in consolidation, except as discussed in Note 18. Related-Party Transactions. The year-end Condensed Consolidated Balance Sheets were derived from the audited Consolidated Financial Statements included in the Annual Report on Form 10-K for the year ended December 31, 2012. | ||
Power [Member] | ||
Organization and Basis of Presentation | Organization and Basis of Presentation | |
Organization | ||
PSEG is a holding company with a diversified business mix within the energy industry. Its operations are primarily in the Northeastern and Mid-Atlantic United States and in other select markets. PSEG’s four principal direct wholly owned subsidiaries are: | ||
• | Power—which is a multi-regional, wholesale energy supply company that integrates its generating asset operations and gas supply commitments with its wholesale energy, fuel supply and energy trading functions through three principal direct wholly owned subsidiaries. Power’s subsidiaries are subject to regulation by the Federal Energy Regulatory Commission (FERC), the Nuclear Regulatory Commission (NRC) and the states in which they operate. | |
• | 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 FERC. PSE&G also invests in solar generation projects and has implemented energy efficiency and demand response programs, which are regulated by the BPU. | |
• | PSEG Energy Holdings L.L.C. (Energy Holdings)—which primarily has investments in leases and solar generation projects through its direct wholly owned subsidiaries. Certain Energy Holdings’ subsidiaries are subject to regulation by the FERC and the states in which they operate. A subsidiary of Energy Holdings has been awarded a contract to manage the transmission and distribution assets of the Long Island Power Authority (LIPA) starting in 2014. | |
• | PSEG Services Corporation (Services)—which provides management, administrative and general services to PSEG and its subsidiaries at cost. | |
Basis of Presentation | ||
The respective financial statements included herein have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (SEC) applicable to Quarterly Reports on Form 10-Q. Certain information and note disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States (GAAP) have been condensed or omitted pursuant to such rules and regulations. These Condensed Consolidated Financial Statements and Notes to Condensed Consolidated Financial Statements (Notes) should be read in conjunction with, and update and supplement matters discussed in, the Annual Report on Form 10-K for the year ended December 31, 2012 and Quarterly Reports on Form 10-Q for the quarters ended March 31, 2013 and June 30, 2013. | ||
The unaudited condensed consolidated financial information furnished herein reflects all adjustments which are, in the opinion of management, necessary to fairly state the results for the interim periods presented. All such adjustments are of a normal recurring nature. All significant intercompany accounts and transactions are eliminated in consolidation, except as discussed in Note 18. Related-Party Transactions. The year-end Condensed Consolidated Balance Sheets were derived from the audited Consolidated Financial Statements included in the Annual Report on Form 10-K for the year ended December 31, 2012. | ||
PSE And G [Member] | ||
Organization and Basis of Presentation | Organization and Basis of Presentation | |
Organization | ||
PSEG is a holding company with a diversified business mix within the energy industry. Its operations are primarily in the Northeastern and Mid-Atlantic United States and in other select markets. PSEG’s four principal direct wholly owned subsidiaries are: | ||
• | Power—which is a multi-regional, wholesale energy supply company that integrates its generating asset operations and gas supply commitments with its wholesale energy, fuel supply and energy trading functions through three principal direct wholly owned subsidiaries. Power’s subsidiaries are subject to regulation by the Federal Energy Regulatory Commission (FERC), the Nuclear Regulatory Commission (NRC) and the states in which they operate. | |
• | 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 FERC. PSE&G also invests in solar generation projects and has implemented energy efficiency and demand response programs, which are regulated by the BPU. | |
• | PSEG Energy Holdings L.L.C. (Energy Holdings)—which primarily has investments in leases and solar generation projects through its direct wholly owned subsidiaries. Certain Energy Holdings’ subsidiaries are subject to regulation by the FERC and the states in which they operate. A subsidiary of Energy Holdings has been awarded a contract to manage the transmission and distribution assets of the Long Island Power Authority (LIPA) starting in 2014. | |
• | PSEG Services Corporation (Services)—which provides management, administrative and general services to PSEG and its subsidiaries at cost. | |
Basis of Presentation | ||
The respective financial statements included herein have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (SEC) applicable to Quarterly Reports on Form 10-Q. Certain information and note disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States (GAAP) have been condensed or omitted pursuant to such rules and regulations. These Condensed Consolidated Financial Statements and Notes to Condensed Consolidated Financial Statements (Notes) should be read in conjunction with, and update and supplement matters discussed in, the Annual Report on Form 10-K for the year ended December 31, 2012 and Quarterly Reports on Form 10-Q for the quarters ended March 31, 2013 and June 30, 2013. | ||
The unaudited condensed consolidated financial information furnished herein reflects all adjustments which are, in the opinion of management, necessary to fairly state the results for the interim periods presented. All such adjustments are of a normal recurring nature. All significant intercompany accounts and transactions are eliminated in consolidation, except as discussed in Note 18. Related-Party Transactions. The year-end Condensed Consolidated Balance Sheets were derived from the audited Consolidated Financial Statements included in the Annual Report on Form 10-K for the year ended December 31, 2012. |
Recent_Accounting_Standards
Recent Accounting Standards | 9 Months Ended | |
Sep. 30, 2013 | ||
Recent Accounting Standards | Recent Accounting Standards | |
New Standards Adopted during 2013 | ||
Disclosures about Offsetting Assets and Liabilities | ||
This accounting standard requires enhanced disclosures regarding assets and liabilities that are either offset in the financial statements, or are subject to an enforceable master netting arrangement or similar agreement. The guidance is applicable to certain financial instruments (e.g. derivatives) and securities borrowing and lending transactions. This standard requires entities: | ||
• | to disclose information about offsetting and related arrangements to enable users of financial statements to understand the effect of those arrangements on an entity's financial position, and | |
• | to present both net (offset amounts) and gross information in the notes to the financial statements for relevant assets and liabilities. | |
We adopted this standard retrospectively effective January 1, 2013. As this standard requires disclosures only, it did not have any impact on our consolidated financial position, results of operations or cash flows. For additional information, see Note 11. Financial Risk Management Activities. | ||
Reclassification Adjustments out of Accumulated Other Comprehensive Income | ||
This accounting standard requires entities to disclose the following information about reclassification adjustments related to Accumulated Other Comprehensive Income: | ||
• | changes in Accumulated Other Comprehensive Income balances by component, and | |
• | significant amounts reclassified out of Accumulated Other Comprehensive Income by respective line items of net income (for amounts that are required by GAAP to be reclassified to net income in their entirety in the same reporting period). | |
We adopted this standard prospectively effective January 1, 2013. As this standard requires disclosures only, it did not have any impact on our consolidated financial position, results of operations or cash flows. For additional information, see Note 15. Accumulated Other Comprehensive Income (Loss), Net of Tax. | ||
New Accounting Standards Issued But Not Yet Adopted | ||
Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists | ||
This accounting standard was issued to address diversity in practice related to the presentation of an unrecognized tax benefit in certain cases. This standard requires entities to present an unrecognized tax benefit or a portion thereof on the Balance Sheet as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward. | ||
However, in cases in which a net operating loss carryforward, a similar tax loss or a tax credit carryforward is not available at the reporting date under the tax law of the jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position, or the tax law of the jurisdiction does not require an entity to use, and the entity does not intend to use the deferred tax asset for such purpose, the unrecognized tax benefit will be presented on the Balance Sheet as a liability and will not be combined with deferred tax assets. | ||
The standard is effective for fiscal years and interim periods beginning after December 15, 2013. We are currently analyzing the impact of this standard to our financial statements. | ||
Power [Member] | ||
Recent Accounting Standards | Recent Accounting Standards | |
New Standards Adopted during 2013 | ||
Disclosures about Offsetting Assets and Liabilities | ||
This accounting standard requires enhanced disclosures regarding assets and liabilities that are either offset in the financial statements, or are subject to an enforceable master netting arrangement or similar agreement. The guidance is applicable to certain financial instruments (e.g. derivatives) and securities borrowing and lending transactions. This standard requires entities: | ||
• | to disclose information about offsetting and related arrangements to enable users of financial statements to understand the effect of those arrangements on an entity's financial position, and | |
• | to present both net (offset amounts) and gross information in the notes to the financial statements for relevant assets and liabilities. | |
We adopted this standard retrospectively effective January 1, 2013. As this standard requires disclosures only, it did not have any impact on our consolidated financial position, results of operations or cash flows. For additional information, see Note 11. Financial Risk Management Activities. | ||
Reclassification Adjustments out of Accumulated Other Comprehensive Income | ||
This accounting standard requires entities to disclose the following information about reclassification adjustments related to Accumulated Other Comprehensive Income: | ||
• | changes in Accumulated Other Comprehensive Income balances by component, and | |
• | significant amounts reclassified out of Accumulated Other Comprehensive Income by respective line items of net income (for amounts that are required by GAAP to be reclassified to net income in their entirety in the same reporting period). | |
We adopted this standard prospectively effective January 1, 2013. As this standard requires disclosures only, it did not have any impact on our consolidated financial position, results of operations or cash flows. For additional information, see Note 15. Accumulated Other Comprehensive Income (Loss), Net of Tax. | ||
New Accounting Standards Issued But Not Yet Adopted | ||
Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists | ||
This accounting standard was issued to address diversity in practice related to the presentation of an unrecognized tax benefit in certain cases. This standard requires entities to present an unrecognized tax benefit or a portion thereof on the Balance Sheet as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward. | ||
However, in cases in which a net operating loss carryforward, a similar tax loss or a tax credit carryforward is not available at the reporting date under the tax law of the jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position, or the tax law of the jurisdiction does not require an entity to use, and the entity does not intend to use the deferred tax asset for such purpose, the unrecognized tax benefit will be presented on the Balance Sheet as a liability and will not be combined with deferred tax assets. | ||
The standard is effective for fiscal years and interim periods beginning after December 15, 2013. We are currently analyzing the impact of this standard to our financial statements. | ||
PSE And G [Member] | ||
Recent Accounting Standards | Recent Accounting Standards | |
New Standards Adopted during 2013 | ||
Disclosures about Offsetting Assets and Liabilities | ||
This accounting standard requires enhanced disclosures regarding assets and liabilities that are either offset in the financial statements, or are subject to an enforceable master netting arrangement or similar agreement. The guidance is applicable to certain financial instruments (e.g. derivatives) and securities borrowing and lending transactions. This standard requires entities: | ||
• | to disclose information about offsetting and related arrangements to enable users of financial statements to understand the effect of those arrangements on an entity's financial position, and | |
• | to present both net (offset amounts) and gross information in the notes to the financial statements for relevant assets and liabilities. | |
We adopted this standard retrospectively effective January 1, 2013. As this standard requires disclosures only, it did not have any impact on our consolidated financial position, results of operations or cash flows. For additional information, see Note 11. Financial Risk Management Activities. | ||
Reclassification Adjustments out of Accumulated Other Comprehensive Income | ||
This accounting standard requires entities to disclose the following information about reclassification adjustments related to Accumulated Other Comprehensive Income: | ||
• | changes in Accumulated Other Comprehensive Income balances by component, and | |
• | significant amounts reclassified out of Accumulated Other Comprehensive Income by respective line items of net income (for amounts that are required by GAAP to be reclassified to net income in their entirety in the same reporting period). | |
We adopted this standard prospectively effective January 1, 2013. As this standard requires disclosures only, it did not have any impact on our consolidated financial position, results of operations or cash flows. For additional information, see Note 15. Accumulated Other Comprehensive Income (Loss), Net of Tax. | ||
New Accounting Standards Issued But Not Yet Adopted | ||
Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists | ||
This accounting standard was issued to address diversity in practice related to the presentation of an unrecognized tax benefit in certain cases. This standard requires entities to present an unrecognized tax benefit or a portion thereof on the Balance Sheet as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward. | ||
However, in cases in which a net operating loss carryforward, a similar tax loss or a tax credit carryforward is not available at the reporting date under the tax law of the jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position, or the tax law of the jurisdiction does not require an entity to use, and the entity does not intend to use the deferred tax asset for such purpose, the unrecognized tax benefit will be presented on the Balance Sheet as a liability and will not be combined with deferred tax assets. | ||
The standard is effective for fiscal years and interim periods beginning after December 15, 2013. We are currently analyzing the impact of this standard to our financial statements. |
Variable_Interest_Entities_VIE
Variable Interest Entities (VIEs) | 9 Months Ended |
Sep. 30, 2013 | |
Variable Interest Entities (VIEs) | Variable Interest Entities (VIEs) |
Variable Interest Entities for which PSE&G is the Primary Beneficiary | |
PSE&G is the primary beneficiary and consolidates two marginally capitalized VIEs, PSE&G Transition Funding LLC (Transition Funding) and PSE&G Transition Funding II LLC (Transition Funding II), which were created for the purpose of issuing transition bonds and purchasing bond transitional property of PSE&G, which is pledged as collateral to a trustee. PSE&G acts as the servicer for these entities to collect securitization transition charges authorized by the BPU. These funds are remitted to Transition Funding and Transition Funding II and are used for interest and principal payments on the transition bonds and related costs. | |
The assets and liabilities of these VIEs are presented separately on the face of the Condensed Consolidated Balance Sheets of PSEG and PSE&G because the Transition Funding and Transition Funding II assets are restricted and can only be used to settle their respective obligations. No Transition Funding or Transition Funding II creditor has any recourse to the general credit of PSE&G in the event the transition charges are not sufficient to cover the bond principal and interest payments of Transition Funding or Transition Funding II, respectively. | |
PSE&G’s maximum exposure to loss is equal to its equity investment in these VIEs which was $16 million as of September 30, 2013 and December 31, 2012. The risk of actual loss to PSE&G is considered remote. PSE&G did not provide any financial support to Transition Funding or Transition Funding II during the first nine months of 2013 or in 2012. PSE&G does not have any contractual commitments or obligations to provide financial support to Transition Funding or Transition Funding II. | |
PSE And G [Member] | |
Variable Interest Entities (VIEs) | Note 3. Variable Interest Entities (VIEs) |
Variable Interest Entities for which PSE&G is the Primary Beneficiary | |
PSE&G is the primary beneficiary and consolidates two marginally capitalized VIEs, PSE&G Transition Funding LLC (Transition Funding) and PSE&G Transition Funding II LLC (Transition Funding II), which were created for the purpose of issuing transition bonds and purchasing bond transitional property of PSE&G, which is pledged as collateral to a trustee. PSE&G acts as the servicer for these entities to collect securitization transition charges authorized by the BPU. These funds are remitted to Transition Funding and Transition Funding II and are used for interest and principal payments on the transition bonds and related costs. | |
The assets and liabilities of these VIEs are presented separately on the face of the Condensed Consolidated Balance Sheets of PSEG and PSE&G because the Transition Funding and Transition Funding II assets are restricted and can only be used to settle their respective obligations. No Transition Funding or Transition Funding II creditor has any recourse to the general credit of PSE&G in the event the transition charges are not sufficient to cover the bond principal and interest payments of Transition Funding or Transition Funding II, respectively. | |
PSE&G’s maximum exposure to loss is equal to its equity investment in these VIEs which was $16 million as of September 30, 2013 and December 31, 2012. The risk of actual loss to PSE&G is considered remote. PSE&G did not provide any financial support to Transition Funding or Transition Funding II during the first nine months of 2013 or in 2012. PSE&G does not have any contractual commitments or obligations to provide financial support to Transition Funding or Transition Funding II. |
Asset_Disposition_Asset_Dispos
Asset Disposition Asset Disposition | 9 Months Ended |
Sep. 30, 2013 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Asset Disposition | Asset Disposition |
In June 2013, Energy Holdings closed on the sale of its investments in a commercial office complex for proceeds of $41 million, resulting in an after-tax gain of $6 million. |
Rate_Filings
Rate Filings | 9 Months Ended | |
Sep. 30, 2013 | ||
Regulatory Assets [Line Items] | ||
Rate Filings | Rate Filings | |
The following information discusses significant updates regarding orders and pending rate filings. This Note should be read in conjunction with Note 6. Regulatory Assets and Liabilities to the Consolidated Financial Statements in the Annual Report on Form 10-K for the year ended December 31, 2012. | ||
• | Weather Normalization Clause (WNC)—In April 2013, the BPU approved PSE&G's filing with respect to deficiency revenues from the 2011-2012 Winter Period. As a result, provisional rates were approved to recover $41 million from customers during the 2012-2013 Winter Period, with a carryover deficiency of $24 million to the 2013-2014 Winter Period. In July 2013, PSE&G filed a petition with the BPU seeking approval to recover $26 million in revenues from its customers during the 2013-2014 Winter Period inclusive of the $24 million carryover deficiency. In September 2013, the BPU approved PSE&G's petition for $26 million of deficiency revenues which will be recovered from customers during the 2013-2014 Winter Period (October 1 through May 31). | |
• | Universal Service Fund (USF) Lifeline—In June 2013, New Jersey’s electric and gas utilities, including PSE&G, filed requests to reset the statewide rates for the USF and Lifeline program. In September 2013, the BPU approved rates set to recover $274 million on a statewide basis. PSE&G earns no margin on the collection of the USF and Lifeline programs resulting in no impact on Net Income. | |
• | Transmission Filing—In October 2013, PSE&G filed its 2014 Annual Formula Rate Update with the FERC, which provides for approximately $176 million in increased annual transmission revenues effective January 1, 2014. | |
• | BGSS—In October 2013, PSE&G filed a self-implementing two-month BGSS bill credit with the BPU. This bill credit will be 35 cents per therm for the months of November and December 2013 and is designed to provide approximately $115 million to residential customers over the two months and reduce the BGSS deferred balance. The BGSS rate will revert back to the current rate on January 1, 2014. | |
PSE And G [Member] | ||
Regulatory Assets [Line Items] | ||
Rate Filings | Rate Filings | |
The following information discusses significant updates regarding orders and pending rate filings. This Note should be read in conjunction with Note 6. Regulatory Assets and Liabilities to the Consolidated Financial Statements in the Annual Report on Form 10-K for the year ended December 31, 2012. | ||
• | Weather Normalization Clause (WNC)—In April 2013, the BPU approved PSE&G's filing with respect to deficiency revenues from the 2011-2012 Winter Period. As a result, provisional rates were approved to recover $41 million from customers during the 2012-2013 Winter Period, with a carryover deficiency of $24 million to the 2013-2014 Winter Period. In July 2013, PSE&G filed a petition with the BPU seeking approval to recover $26 million in revenues from its customers during the 2013-2014 Winter Period inclusive of the $24 million carryover deficiency. In September 2013, the BPU approved PSE&G's petition for $26 million of deficiency revenues which will be recovered from customers during the 2013-2014 Winter Period (October 1 through May 31). | |
• | Universal Service Fund (USF) Lifeline—In June 2013, New Jersey’s electric and gas utilities, including PSE&G, filed requests to reset the statewide rates for the USF and Lifeline program. In September 2013, the BPU approved rates set to recover $274 million on a statewide basis. PSE&G earns no margin on the collection of the USF and Lifeline programs resulting in no impact on Net Income. | |
• | Transmission Filing—In October 2013, PSE&G filed its 2014 Annual Formula Rate Update with the FERC, which provides for approximately $176 million in increased annual transmission revenues effective January 1, 2014. | |
• | BGSS—In October 2013, PSE&G filed a self-implementing two-month BGSS bill credit with the BPU. This bill credit will be 35 cents per therm for the months of November and December 2013 and is designed to provide approximately $115 million to residential customers over the two months and reduce the BGSS deferred balance. The BGSS rate will revert back to the current rate on January 1, 2014. |
Financing_Receivables
Financing Receivables | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||
Financing Receivables | Financing Receivables | |||||||||||||||||||
PSE&G | ||||||||||||||||||||
PSE&G sponsors a solar loan program designed to help finance the installation of solar power systems throughout its electric service area. The loans are generally paid back with Solar Renewable Energy Certificates (SRECs) generated from the installed solar electric system. The following table reflects the outstanding loans by class of customer, none of which are considered “non-performing.” | ||||||||||||||||||||
Credit Risk Profile Based on Payment Activity | ||||||||||||||||||||
As of | As of | |||||||||||||||||||
Consumer Loans | September 30, | December 31, | ||||||||||||||||||
2013 | 2012 | |||||||||||||||||||
Millions | ||||||||||||||||||||
Commercial/Industrial | $ | 183 | $ | 174 | ||||||||||||||||
Residential | 15 | 15 | ||||||||||||||||||
Total | $ | 198 | $ | 189 | ||||||||||||||||
Energy Holdings | ||||||||||||||||||||
Energy Holdings, through various of its indirect subsidiary companies, has investments in domestic energy and real estate assets subject primarily to leveraged lease accounting. A leveraged lease is typically comprised of an investment by an equity investor and debt provided by a third party debt investor. The debt is recourse only to the assets subject to lease and is not included on PSEG’s Condensed Consolidated Balance Sheets. As an equity investor, Energy Holdings’ investments in the leases are comprised of the total expected lease receivables on its investments over the lease terms plus the estimated residual values at the end of the lease terms, reduced for any income not yet earned on the leases. This amount is included in Long-Term Investments on PSEG’s Condensed Consolidated Balance Sheets. The more rapid depreciation of the leased property for tax purposes creates tax cash flow that will be repaid to the taxing authority in later periods. As such, the liability for such taxes due is recorded in Deferred Income Taxes on PSEG’s Condensed Consolidated Balance Sheets. | ||||||||||||||||||||
The table below shows Energy Holdings’ gross and net lease investment as of September 30, 2013 and December 31, 2012, respectively. | ||||||||||||||||||||
As of | As of | |||||||||||||||||||
September 30, | December 31, | |||||||||||||||||||
2013 | 2012 | |||||||||||||||||||
Millions | ||||||||||||||||||||
Lease Receivables (net of Non-Recourse Debt) | $ | 701 | $ | 721 | ||||||||||||||||
Estimated Residual Value of Leased Assets | 529 | 535 | ||||||||||||||||||
1,230 | 1,256 | |||||||||||||||||||
Unearned and Deferred Income | (405 | ) | (416 | ) | ||||||||||||||||
Gross Investments in Leases | 825 | 840 | ||||||||||||||||||
Deferred Tax Liabilities | (705 | ) | (723 | ) | ||||||||||||||||
Net Investments in Leases | $ | 120 | $ | 117 | ||||||||||||||||
The corresponding receivables associated with the lease portfolio are reflected below, net of non-recourse debt. The ratings in the table represent the ratings of the entities providing payment assurance to Energy Holdings. "Not Rated" counterparties represent investments in lease receivables related to coal-fired assets and commercial real estate properties. | ||||||||||||||||||||
Lease Receivables, Net of | ||||||||||||||||||||
Non-Recourse Debt | ||||||||||||||||||||
Counterparties’ Credit Rating (Standard & Poor's (S&P)) | As of | As of | ||||||||||||||||||
As of September 30, 2013 | September 30, 2013 | December 31, 2012 | ||||||||||||||||||
Millions | ||||||||||||||||||||
AA | $ | 20 | $ | 21 | ||||||||||||||||
AA- | 56 | 73 | ||||||||||||||||||
BBB+ - BBB- | 316 | 316 | ||||||||||||||||||
B | 165 | 166 | ||||||||||||||||||
Not Rated | 144 | 145 | ||||||||||||||||||
Total | $ | 701 | $ | 721 | ||||||||||||||||
The “B” rating and the "Not Rated" above include lease receivables related to coal-fired assets in Pennsylvania and Illinois, respectively. As of September 30, 2013, the gross investment in the leases of such assets, net of non-recourse debt, was $562 million ($23 million, net of deferred taxes). A more detailed description of such assets under lease is presented in the following table. | ||||||||||||||||||||
Asset | Location | Gross | % | Total | Fuel | Counter-parties’ | Counterparty | |||||||||||||
Investment | Owned | Type | S&P Credit | |||||||||||||||||
Ratings | ||||||||||||||||||||
Millions | MW | |||||||||||||||||||
Powerton Station Units 5 and 6 | IL | $ | 134 | 64 | % | 1,538 | Coal | Not Rated | Edison Mission Energy | |||||||||||
Joliet Station Units 7 and 8 | IL | $ | 84 | 64 | % | 1,044 | Coal | Not Rated | Edison Mission Energy | |||||||||||
Keystone Station Units 1 and 2 | PA | $ | 117 | 17 | % | 1,711 | Coal | B | GenOn REMA, LLC | |||||||||||
Conemaugh Station Units 1 and 2 | PA | $ | 117 | 17 | % | 1,711 | Coal | B | GenOn REMA, LLC | |||||||||||
Shawville Station Units 1, 2, 3 and 4 | PA | $ | 110 | 100 | % | 603 | Coal | B | GenOn REMA, LLC | |||||||||||
The credit exposure for lessors is partially mitigated through various credit enhancement mechanisms within the lease transactions. These credit enhancement features vary from lease to lease and may include letters of credit or affiliate guarantees. Upon the occurrence of certain defaults, indirect subsidiary companies of Energy Holdings would exercise their rights and attempt to seek recovery of their investment, potentially including stepping into the lease directly to protect their investments. While these actions could ultimately protect or mitigate the loss of value, they could require the use of significant capital investments and trigger certain material tax obligations. A bankruptcy of a lessee would likely delay any efforts on the part of the lessors to assert their rights upon default and could delay the monetization of claims. Failure to recover adequate value could ultimately lead to a foreclosure on the assets under lease by the lenders. If foreclosures were to occur, Energy Holdings could potentially record a pre-tax write-off up to its gross investment in these facilities and may also be required to pay significant cash tax liabilities to the Internal Revenue Service (IRS). | ||||||||||||||||||||
Indirect subsidiary companies of Energy Holdings lease three coal-fired generation facilities in Pennsylvania (Keystone, Conemaugh and Shawville) to GenOn REMA, LLC (GenOn REMA), a subsidiary of GenOn Energy Inc. (GenOn), which was acquired by NRG Energy, Inc. (NRG) in December 2012. With respect to addressing various environmental controls: Keystone has installed a flue gas desulfurization (FGD) system for sulfur dioxide (SO2), selective catalytic reduction (SCR) equipment for nitrogen oxide (NOX) and mercury control; Conemaugh has a FGD system, while SCR and mercury control equipment are scheduled to be installed and operational by the first quarter of 2015; and GenOn has disclosed its plan to place Shawville in a “long-term protective layup” by April 2015. GenOn has stated that it is evaluating whether to continue to pay the required rent and maintain the facility in accordance with the lease terms or terminate the lease for obsolescence in which case the lessee would be required, among other things, to pay the contractual termination value structured to recover Energy Holdings' indirect subsidiaries' lease investment as specified in the lease agreement. | ||||||||||||||||||||
Although all lease payments from the GenOn REMA leases are current, no assurances can be given that future payments in accordance with the lease contracts will continue. Factors which may impact future lease cash flows include, but are not limited to, new environmental legislation and regulation regarding air quality, water and other discharges in the process of generating electricity, market prices for fuel, electricity and capacity, overall financial condition of lease counterparties and the quality and condition of assets under lease. | ||||||||||||||||||||
Nesbitt Asset Recovery, LLC (Nesbitt), (an indirect, wholly owned subsidiary of Energy Holdings), owns approximately 64% of the lease interest in the Powerton and Joliet coal units in Illinois, with the balance held by Associates Capital Investments, L.L.P. (Associates) (an affiliate of Citigroup, and, together with Nesbitt, the "Equity Investors"). These facilities are leased to Midwest Generation (MWG), an indirect subsidiary of Edison Mission Energy (EME). | ||||||||||||||||||||
MWG has substantially completed investments in mercury removal (Activated Carbon Injection) and NOX emission controls (low NOX burners and Selective Non-Catalytic Reduction systems). On April 4, 2013, MWG obtained approval from the Illinois Pollution Control Board to defer capital investments for up to two additional years to meet upcoming air emission compliance deadlines under Illinois law. Also, on July 8, 2013, the U.S. Court of Appeals affirmed the judgment of the lower court dismissing claims brought by the U.S. Environmental Protection Agency (EPA) and the State of Illinois against EME and MWG for alleged violations of the Clean Air Act. | ||||||||||||||||||||
On December 17, 2012, EME and MWG filed for relief under Chapter 11 of the U.S. Bankruptcy Code. Immediately prior to that filing, EME, MWG and the Equity Investors, as well as certain affiliated owner lessors, entered into a forbearance agreement with holders of a majority of the lease debt that financed the original sale-leaseback transaction. The forbearance agreement, which was approved by the Bankruptcy Court, expired on April 5, 2013. In June 2013, the parties reached an agreement, which was approved by the Bankruptcy Court, to again extend the deadline for MWG to assume or reject the leases until September 30, 2013, and in September 2013, extended it to December 31, 2013. As part of this agreement, (i) MWG will make partial lease payments of $4 million each month during the extension period starting in July 2013, (ii) MWG will continue to make certain environmental capital expenditures at the units, and (iii) the parties reserve their rights, claims, and defenses with respect to whether the leases are secured financings, rent amounts due under the leases, and the classification of claims under the leases, among other things. | ||||||||||||||||||||
On October 18, 2013, NRG, EME, MWG, the Equity Investors and other creditor parties involved in the bankruptcy executed a new agreement, which was approved by the Bankruptcy Court on October 24, 2013. The new agreement contains the terms and conditions under which NRG would acquire substantially all of EME’s assets, including the Powerton and Joliet leased assets. As part of the proposed transaction, (i) the leases for the Powerton and Joliet coal units would be assumed on their existing terms, (ii) all past due rent under the leases would be paid in full, (iii) NRG would assume EME’s tax indemnity and guarantee obligations, and (iv) NRG would invest up to $350 million in the Powerton and Joliet coal units so they could be operated in compliance with all environmental regulations. The proposed transaction also requires approval by the FERC and other regulatory bodies, and there can be no assurances that the above transaction will be consummated. The terms of the aforementioned forbearance agreement will remain in effect beyond December 31, 2013 until such time as the NRG acquisition is consummated or terminated. | ||||||||||||||||||||
PSE And G [Member] | ||||||||||||||||||||
Financing Receivables | Financing Receivables | |||||||||||||||||||
PSE&G | ||||||||||||||||||||
PSE&G sponsors a solar loan program designed to help finance the installation of solar power systems throughout its electric service area. The loans are generally paid back with Solar Renewable Energy Certificates (SRECs) generated from the installed solar electric system. The following table reflects the outstanding loans by class of customer, none of which are considered “non-performing.” | ||||||||||||||||||||
Credit Risk Profile Based on Payment Activity | ||||||||||||||||||||
As of | As of | |||||||||||||||||||
Consumer Loans | September 30, | December 31, | ||||||||||||||||||
2013 | 2012 | |||||||||||||||||||
Millions | ||||||||||||||||||||
Commercial/Industrial | $ | 183 | $ | 174 | ||||||||||||||||
Residential | 15 | 15 | ||||||||||||||||||
Total | $ | 198 | $ | 189 | ||||||||||||||||
Energy Holdings | ||||||||||||||||||||
Energy Holdings, through various of its indirect subsidiary companies, has investments in domestic energy and real estate assets subject primarily to leveraged lease accounting. A leveraged lease is typically comprised of an investment by an equity investor and debt provided by a third party debt investor. The debt is recourse only to the assets subject to lease and is not included on PSEG’s Condensed Consolidated Balance Sheets. As an equity investor, Energy Holdings’ investments in the leases are comprised of the total expected lease receivables on its investments over the lease terms plus the estimated residual values at the end of the lease terms, reduced for any income not yet earned on the leases. This amount is included in Long-Term Investments on PSEG’s Condensed Consolidated Balance Sheets. The more rapid depreciation of the leased property for tax purposes creates tax cash flow that will be repaid to the taxing authority in later periods. As such, the liability for such taxes due is recorded in Deferred Income Taxes on PSEG’s Condensed Consolidated Balance Sheets. | ||||||||||||||||||||
The table below shows Energy Holdings’ gross and net lease investment as of September 30, 2013 and December 31, 2012, respectively. | ||||||||||||||||||||
As of | As of | |||||||||||||||||||
September 30, | December 31, | |||||||||||||||||||
2013 | 2012 | |||||||||||||||||||
Millions | ||||||||||||||||||||
Lease Receivables (net of Non-Recourse Debt) | $ | 701 | $ | 721 | ||||||||||||||||
Estimated Residual Value of Leased Assets | 529 | 535 | ||||||||||||||||||
1,230 | 1,256 | |||||||||||||||||||
Unearned and Deferred Income | (405 | ) | (416 | ) | ||||||||||||||||
Gross Investments in Leases | 825 | 840 | ||||||||||||||||||
Deferred Tax Liabilities | (705 | ) | (723 | ) | ||||||||||||||||
Net Investments in Leases | $ | 120 | $ | 117 | ||||||||||||||||
The corresponding receivables associated with the lease portfolio are reflected below, net of non-recourse debt. The ratings in the table represent the ratings of the entities providing payment assurance to Energy Holdings. "Not Rated" counterparties represent investments in lease receivables related to coal-fired assets and commercial real estate properties. | ||||||||||||||||||||
Lease Receivables, Net of | ||||||||||||||||||||
Non-Recourse Debt | ||||||||||||||||||||
Counterparties’ Credit Rating (Standard & Poor's (S&P)) | As of | As of | ||||||||||||||||||
As of September 30, 2013 | September 30, 2013 | December 31, 2012 | ||||||||||||||||||
Millions | ||||||||||||||||||||
AA | $ | 20 | $ | 21 | ||||||||||||||||
AA- | 56 | 73 | ||||||||||||||||||
BBB+ - BBB- | 316 | 316 | ||||||||||||||||||
B | 165 | 166 | ||||||||||||||||||
Not Rated | 144 | 145 | ||||||||||||||||||
Total | $ | 701 | $ | 721 | ||||||||||||||||
The “B” rating and the "Not Rated" above include lease receivables related to coal-fired assets in Pennsylvania and Illinois, respectively. As of September 30, 2013, the gross investment in the leases of such assets, net of non-recourse debt, was $562 million ($23 million, net of deferred taxes). A more detailed description of such assets under lease is presented in the following table. | ||||||||||||||||||||
Asset | Location | Gross | % | Total | Fuel | Counter-parties’ | Counterparty | |||||||||||||
Investment | Owned | Type | S&P Credit | |||||||||||||||||
Ratings | ||||||||||||||||||||
Millions | MW | |||||||||||||||||||
Powerton Station Units 5 and 6 | IL | $ | 134 | 64 | % | 1,538 | Coal | Not Rated | Edison Mission Energy | |||||||||||
Joliet Station Units 7 and 8 | IL | $ | 84 | 64 | % | 1,044 | Coal | Not Rated | Edison Mission Energy | |||||||||||
Keystone Station Units 1 and 2 | PA | $ | 117 | 17 | % | 1,711 | Coal | B | GenOn REMA, LLC | |||||||||||
Conemaugh Station Units 1 and 2 | PA | $ | 117 | 17 | % | 1,711 | Coal | B | GenOn REMA, LLC | |||||||||||
Shawville Station Units 1, 2, 3 and 4 | PA | $ | 110 | 100 | % | 603 | Coal | B | GenOn REMA, LLC | |||||||||||
The credit exposure for lessors is partially mitigated through various credit enhancement mechanisms within the lease transactions. These credit enhancement features vary from lease to lease and may include letters of credit or affiliate guarantees. Upon the occurrence of certain defaults, indirect subsidiary companies of Energy Holdings would exercise their rights and attempt to seek recovery of their investment, potentially including stepping into the lease directly to protect their investments. While these actions could ultimately protect or mitigate the loss of value, they could require the use of significant capital investments and trigger certain material tax obligations. A bankruptcy of a lessee would likely delay any efforts on the part of the lessors to assert their rights upon default and could delay the monetization of claims. Failure to recover adequate value could ultimately lead to a foreclosure on the assets under lease by the lenders. If foreclosures were to occur, Energy Holdings could potentially record a pre-tax write-off up to its gross investment in these facilities and may also be required to pay significant cash tax liabilities to the Internal Revenue Service (IRS). | ||||||||||||||||||||
Indirect subsidiary companies of Energy Holdings lease three coal-fired generation facilities in Pennsylvania (Keystone, Conemaugh and Shawville) to GenOn REMA, LLC (GenOn REMA), a subsidiary of GenOn Energy Inc. (GenOn), which was acquired by NRG Energy, Inc. (NRG) in December 2012. With respect to addressing various environmental controls: Keystone has installed a flue gas desulfurization (FGD) system for sulfur dioxide (SO2), selective catalytic reduction (SCR) equipment for nitrogen oxide (NOX) and mercury control; Conemaugh has a FGD system, while SCR and mercury control equipment are scheduled to be installed and operational by the first quarter of 2015; and GenOn has disclosed its plan to place Shawville in a “long-term protective layup” by April 2015. GenOn has stated that it is evaluating whether to continue to pay the required rent and maintain the facility in accordance with the lease terms or terminate the lease for obsolescence in which case the lessee would be required, among other things, to pay the contractual termination value structured to recover Energy Holdings' indirect subsidiaries' lease investment as specified in the lease agreement. | ||||||||||||||||||||
Although all lease payments from the GenOn REMA leases are current, no assurances can be given that future payments in accordance with the lease contracts will continue. Factors which may impact future lease cash flows include, but are not limited to, new environmental legislation and regulation regarding air quality, water and other discharges in the process of generating electricity, market prices for fuel, electricity and capacity, overall financial condition of lease counterparties and the quality and condition of assets under lease. | ||||||||||||||||||||
Nesbitt Asset Recovery, LLC (Nesbitt), (an indirect, wholly owned subsidiary of Energy Holdings), owns approximately 64% of the lease interest in the Powerton and Joliet coal units in Illinois, with the balance held by Associates Capital Investments, L.L.P. (Associates) (an affiliate of Citigroup, and, together with Nesbitt, the "Equity Investors"). These facilities are leased to Midwest Generation (MWG), an indirect subsidiary of Edison Mission Energy (EME). | ||||||||||||||||||||
MWG has substantially completed investments in mercury removal (Activated Carbon Injection) and NOX emission controls (low NOX burners and Selective Non-Catalytic Reduction systems). On April 4, 2013, MWG obtained approval from the Illinois Pollution Control Board to defer capital investments for up to two additional years to meet upcoming air emission compliance deadlines under Illinois law. Also, on July 8, 2013, the U.S. Court of Appeals affirmed the judgment of the lower court dismissing claims brought by the U.S. Environmental Protection Agency (EPA) and the State of Illinois against EME and MWG for alleged violations of the Clean Air Act. | ||||||||||||||||||||
On December 17, 2012, EME and MWG filed for relief under Chapter 11 of the U.S. Bankruptcy Code. Immediately prior to that filing, EME, MWG and the Equity Investors, as well as certain affiliated owner lessors, entered into a forbearance agreement with holders of a majority of the lease debt that financed the original sale-leaseback transaction. The forbearance agreement, which was approved by the Bankruptcy Court, expired on April 5, 2013. In June 2013, the parties reached an agreement, which was approved by the Bankruptcy Court, to again extend the deadline for MWG to assume or reject the leases until September 30, 2013, and in September 2013, extended it to December 31, 2013. As part of this agreement, (i) MWG will make partial lease payments of $4 million each month during the extension period starting in July 2013, (ii) MWG will continue to make certain environmental capital expenditures at the units, and (iii) the parties reserve their rights, claims, and defenses with respect to whether the leases are secured financings, rent amounts due under the leases, and the classification of claims under the leases, among other things. | ||||||||||||||||||||
On October 18, 2013, NRG, EME, MWG, the Equity Investors and other creditor parties involved in the bankruptcy executed a new agreement, which was approved by the Bankruptcy Court on October 24, 2013. The new agreement contains the terms and conditions under which NRG would acquire substantially all of EME’s assets, including the Powerton and Joliet leased assets. As part of the proposed transaction, (i) the leases for the Powerton and Joliet coal units would be assumed on their existing terms, (ii) all past due rent under the leases would be paid in full, (iii) NRG would assume EME’s tax indemnity and guarantee obligations, and (iv) NRG would invest up to $350 million in the Powerton and Joliet coal units so they could be operated in compliance with all environmental regulations. The proposed transaction also requires approval by the FERC and other regulatory bodies, and there can be no assurances that the above transaction will be consummated. The terms of the aforementioned forbearance agreement will remain in effect beyond December 31, 2013 until such time as the NRG acquisition is consummated or terminated. |
AvailableforSale_Securities
Available-for-Sale Securities | 9 Months Ended | |||||||||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||||||||
Available-for-Sale Securities | Available-for-Sale Securities | |||||||||||||||||||||||||||||||||
Nuclear Decommissioning Trust (NDT) Fund | ||||||||||||||||||||||||||||||||||
Power maintains an external master nuclear decommissioning trust to fund its share of decommissioning for its five nuclear facilities upon termination of operation. The trust contains a qualified fund and a non-qualified fund. Section 468A of the Internal Revenue Code limits the amount of money that can be contributed into a qualified fund. The trust funds are managed by third party investment advisers who operate under investment guidelines developed by Power. | ||||||||||||||||||||||||||||||||||
Power classifies investments in the NDT Fund as available-for-sale. The following tables show the fair values and gross unrealized gains and losses for the securities held in the NDT Fund: | ||||||||||||||||||||||||||||||||||
As of September 30, 2013 | ||||||||||||||||||||||||||||||||||
Cost | Gross | Gross | Fair | |||||||||||||||||||||||||||||||
Unrealized | Unrealized | Value | ||||||||||||||||||||||||||||||||
Gains | Losses | |||||||||||||||||||||||||||||||||
Millions | ||||||||||||||||||||||||||||||||||
Equity Securities | $ | 615 | $ | 234 | $ | (6 | ) | $ | 843 | |||||||||||||||||||||||||
Debt Securities | ||||||||||||||||||||||||||||||||||
Government Obligations | 411 | 5 | (6 | ) | 410 | |||||||||||||||||||||||||||||
Other Debt Securities | 313 | 11 | (4 | ) | 320 | |||||||||||||||||||||||||||||
Total Debt Securities | 724 | 16 | (10 | ) | 730 | |||||||||||||||||||||||||||||
Other Securities | 62 | — | — | 62 | ||||||||||||||||||||||||||||||
Total NDT Available-for-Sale Securities | $ | 1,401 | $ | 250 | $ | (16 | ) | $ | 1,635 | |||||||||||||||||||||||||
As of December 31, 2012 | ||||||||||||||||||||||||||||||||||
Cost | Gross | Gross | Fair | |||||||||||||||||||||||||||||||
Unrealized | Unrealized | Value | ||||||||||||||||||||||||||||||||
Gains | Losses | |||||||||||||||||||||||||||||||||
Millions | ||||||||||||||||||||||||||||||||||
Equity Securities | $ | 648 | $ | 147 | $ | (6 | ) | $ | 789 | |||||||||||||||||||||||||
Debt Securities | ||||||||||||||||||||||||||||||||||
Government Obligations | 274 | 11 | — | 285 | ||||||||||||||||||||||||||||||
Other Debt Securities | 320 | 22 | — | 342 | ||||||||||||||||||||||||||||||
Total Debt Securities | 594 | 33 | — | 627 | ||||||||||||||||||||||||||||||
Other Securities | 124 | — | — | 124 | ||||||||||||||||||||||||||||||
Total NDT Available-for-Sale Securities | $ | 1,366 | $ | 180 | $ | (6 | ) | $ | 1,540 | |||||||||||||||||||||||||
These amounts in the preceding tables do not include receivables and payables for NDT Fund transactions which have not settled at the end of each period. Such amounts are included in Accounts Receivable and Accounts Payable on the Condensed Consolidated Balance Sheets as shown in the following table. | ||||||||||||||||||||||||||||||||||
As of | As of | |||||||||||||||||||||||||||||||||
September 30, | December 31, | |||||||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||||||
Millions | ||||||||||||||||||||||||||||||||||
Accounts Receivable | $ | 43 | $ | 18 | ||||||||||||||||||||||||||||||
Accounts Payable | $ | 47 | $ | 53 | ||||||||||||||||||||||||||||||
The following table shows the value of securities in the NDT Fund that have been in an unrealized loss position for less than and greater than 12 months. | ||||||||||||||||||||||||||||||||||
As of September 30, 2013 | As of December 31, 2012 | |||||||||||||||||||||||||||||||||
Less Than 12 | Greater Than 12 | Less Than 12 | Greater Than 12 | |||||||||||||||||||||||||||||||
Months | Months | Months | Months | |||||||||||||||||||||||||||||||
Fair | Gross | Fair | Gross | Fair | Gross | Fair | Gross | |||||||||||||||||||||||||||
Value | Unrealized | Value | Unrealized | Value | Unrealized | Value | Unrealized | |||||||||||||||||||||||||||
Losses | Losses | Losses | Losses | |||||||||||||||||||||||||||||||
Millions | ||||||||||||||||||||||||||||||||||
Equity Securities (A) | $ | 78 | $ | (6 | ) | $ | — | $ | — | $ | 139 | $ | (6 | ) | $ | — | $ | — | ||||||||||||||||
Debt Securities | ||||||||||||||||||||||||||||||||||
Government Obligations (B) | 158 | (6 | ) | — | — | 34 | — | 1 | — | |||||||||||||||||||||||||
Other Debt Securities (C) | 131 | (4 | ) | — | — | 31 | — | 6 | — | |||||||||||||||||||||||||
Total Debt Securities | 289 | (10 | ) | — | — | 65 | — | 7 | — | |||||||||||||||||||||||||
Other Securities | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||
NDT Available-for-Sale Securities | $ | 367 | $ | (16 | ) | $ | — | $ | — | $ | 204 | $ | (6 | ) | $ | 7 | $ | — | ||||||||||||||||
(A) | Equity Securities—Investments in marketable equity securities within the NDT Fund are primarily in common stocks within a broad range of industries and sectors. The unrealized losses are distributed over a broad range of securities with limited impairment durations. Power does not consider these securities to be other-than-temporarily impaired as of September 30, 2013. | |||||||||||||||||||||||||||||||||
(B) | Debt Securities (Government)—Unrealized losses on Power’s NDT investments in United States Treasury obligations and Federal Agency asset-backed securities were caused by interest rate changes. Since these investments are guaranteed by the United States government or an agency of the United States government, it is not expected that these securities will settle for less than their amortized cost basis, since Power does not intend to sell nor will it be more-likely-than-not required to sell. Power does not consider these securities to be other-than-temporarily impaired as of September 30, 2013. | |||||||||||||||||||||||||||||||||
(C) | Debt Securities (Corporate)—Power’s investments in corporate bonds are limited to 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 September 30, 2013. | |||||||||||||||||||||||||||||||||
The proceeds from the sales of and the net realized gains on securities in the NDT Fund were: | ||||||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||||
Millions | ||||||||||||||||||||||||||||||||||
Proceeds from NDT Fund Sales | $ | 220 | $ | 617 | $ | 837 | $ | 1,252 | ||||||||||||||||||||||||||
Net Realized Gains (Losses) on NDT Fund: | ||||||||||||||||||||||||||||||||||
Gross Realized Gains | 35 | 94 | 95 | 136 | ||||||||||||||||||||||||||||||
Gross Realized Losses | (9 | ) | (19 | ) | (34 | ) | (41 | ) | ||||||||||||||||||||||||||
Net Realized Gains (Losses) on NDT Fund | $ | 26 | $ | 75 | $ | 61 | $ | 95 | ||||||||||||||||||||||||||
Gross realized gains and gross realized losses disclosed in the above table were recognized in Other Income and Other Deductions, respectively, in PSEG’s and Power’s Condensed Consolidated Statements of Operations. Net unrealized gains of $115 million (after-tax) were a component of Accumulated Other Comprehensive Loss on PSEG's and Power’s Condensed Consolidated Balance Sheets as of September 30, 2013. | ||||||||||||||||||||||||||||||||||
The NDT available-for-sale debt securities held as of September 30, 2013 had the following maturities: | ||||||||||||||||||||||||||||||||||
Time Frame | Fair Value | |||||||||||||||||||||||||||||||||
Millions | ||||||||||||||||||||||||||||||||||
Less than one year | $ | 57 | ||||||||||||||||||||||||||||||||
1 - 5 years | 167 | |||||||||||||||||||||||||||||||||
6 - 10 years | 186 | |||||||||||||||||||||||||||||||||
11 - 15 years | 44 | |||||||||||||||||||||||||||||||||
16 - 20 years | 19 | |||||||||||||||||||||||||||||||||
Over 20 years | 257 | |||||||||||||||||||||||||||||||||
Total NDT Available-for-Sale Debt Securities | $ | 730 | ||||||||||||||||||||||||||||||||
The cost of these securities was determined on the basis of specific identification. | ||||||||||||||||||||||||||||||||||
Power periodically assesses individual securities whose fair value is less than amortized cost to determine whether the investments are considered to be other-than-temporarily impaired. For equity securities, management considers the ability and intent to hold for a reasonable time to permit recovery in addition to the severity and duration of the loss. For fixed income securities, management considers its intent to sell or requirement to sell a security prior to expected recovery. In those cases where a sale is expected, any impairment would be recorded through earnings. For fixed income securities where there is no intent to sell or likely requirement to sell, management evaluates whether credit loss is a component of the impairment. If so, that portion is recorded through earnings while the noncredit loss component is recorded through Accumulated Other Comprehensive Income (Loss). In 2013, other-than-temporary impairments of $7 million were recognized on securities in the NDT Fund. Any subsequent recoveries in the value of these securities would be recognized in Accumulated Other Comprehensive Income (Loss) unless the securities are sold, in which case, any gain would be recognized in income. The assessment of fair market value compared to cost is applied on a weighted average basis taking into account various purchase dates and initial cost of the securities. | ||||||||||||||||||||||||||||||||||
Rabbi Trust | ||||||||||||||||||||||||||||||||||
PSEG maintains certain unfunded nonqualified benefit plans to provide supplemental retirement and deferred compensation benefits to certain key employees. Certain assets related to these plans have been set aside in a grantor trust commonly known as a “Rabbi Trust.” | ||||||||||||||||||||||||||||||||||
PSEG classifies investments in the Rabbi Trust as available-for-sale. The following tables show the fair values, gross unrealized gains and losses and amortized cost basis for the securities held in the Rabbi Trust. | ||||||||||||||||||||||||||||||||||
As of September 30, 2013 | ||||||||||||||||||||||||||||||||||
Cost | Gross | Gross | Fair | |||||||||||||||||||||||||||||||
Unrealized | Unrealized | Value | ||||||||||||||||||||||||||||||||
Gains | Losses | |||||||||||||||||||||||||||||||||
Millions | ||||||||||||||||||||||||||||||||||
Equity Securities | $ | 14 | $ | 7 | $ | — | $ | 21 | ||||||||||||||||||||||||||
Debt Securities | ||||||||||||||||||||||||||||||||||
Government Obligations | 110 | — | (2 | ) | 108 | |||||||||||||||||||||||||||||
Other Debt Securities | 45 | — | (1 | ) | 44 | |||||||||||||||||||||||||||||
Total Debt Securities | 155 | — | (3 | ) | 152 | |||||||||||||||||||||||||||||
Other Securities | 2 | — | — | 2 | ||||||||||||||||||||||||||||||
Total Rabbi Trust Available-for-Sale Securities | $ | 171 | $ | 7 | $ | (3 | ) | $ | 175 | |||||||||||||||||||||||||
Securities in the Rabbi Trust in a gross unrealized loss position have been in such position for less than twelve months. | ||||||||||||||||||||||||||||||||||
As of December 31, 2012 | ||||||||||||||||||||||||||||||||||
Cost | Gross | Gross | Fair | |||||||||||||||||||||||||||||||
Unrealized | Unrealized | Value | ||||||||||||||||||||||||||||||||
Gains | Losses | |||||||||||||||||||||||||||||||||
Millions | ||||||||||||||||||||||||||||||||||
Equity Securities | $ | 13 | $ | 5 | $ | — | $ | 18 | ||||||||||||||||||||||||||
Debt Securities | ||||||||||||||||||||||||||||||||||
Government Obligations | 114 | 3 | — | 117 | ||||||||||||||||||||||||||||||
Other Debt Securities | 45 | 2 | — | 47 | ||||||||||||||||||||||||||||||
Total Debt Securities | 159 | 5 | — | 164 | ||||||||||||||||||||||||||||||
Other Securities | 3 | — | — | 3 | ||||||||||||||||||||||||||||||
Total Rabbi Trust Available-for-Sale Securities | $ | 175 | $ | 10 | $ | — | $ | 185 | ||||||||||||||||||||||||||
These amounts in the preceding tables do not include receivables and payables for Rabbi Trust Fund transactions which have not settled at the end of each period. Such amounts are included in Accounts Receivable and Accounts Payable on the Condensed Consolidated Balance Sheets as shown in the following table. | ||||||||||||||||||||||||||||||||||
As of | As of | |||||||||||||||||||||||||||||||||
September 30, | December 31, | |||||||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||||||
Millions | ||||||||||||||||||||||||||||||||||
Accounts Receivable | $ | 3 | $ | 4 | ||||||||||||||||||||||||||||||
Accounts Payable | $ | 3 | $ | 5 | ||||||||||||||||||||||||||||||
The proceeds from the sales of and the net realized gains on securities in the Rabbi Trust Fund were: | ||||||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||||
Millions | ||||||||||||||||||||||||||||||||||
Proceeds from Rabbi Trust Sales | $ | 13 | $ | 6 | $ | 77 | $ | 221 | ||||||||||||||||||||||||||
Net Realized Gains (Losses) on Rabbi Trust: | ||||||||||||||||||||||||||||||||||
Gross Realized Gains | $ | — | $ | — | $ | 4 | $ | 6 | ||||||||||||||||||||||||||
Gross Realized Losses | — | — | (3 | ) | — | |||||||||||||||||||||||||||||
Net Realized Gains (Losses) on Rabbi Trust | $ | — | $ | — | $ | 1 | $ | 6 | ||||||||||||||||||||||||||
Gross realized gains and gross realized losses disclosed in the above table were recognized in Other Income and Other Deductions, respectively, in the Condensed Consolidated Statements of Operations. Net unrealized gains of $2 million (after-tax) were a component of Accumulated Other Comprehensive Loss on the Condensed Consolidated Balance Sheets as of September 30, 2013. The Rabbi Trust available-for-sale debt securities held as of September 30, 2013 had the following maturities: | ||||||||||||||||||||||||||||||||||
Time Frame | Fair Value | |||||||||||||||||||||||||||||||||
Millions | ||||||||||||||||||||||||||||||||||
Less than one year | $ | — | ||||||||||||||||||||||||||||||||
1 - 5 years | 59 | |||||||||||||||||||||||||||||||||
6 - 10 years | 29 | |||||||||||||||||||||||||||||||||
11 - 15 years | 7 | |||||||||||||||||||||||||||||||||
16 - 20 years | 4 | |||||||||||||||||||||||||||||||||
Over 20 years | 53 | |||||||||||||||||||||||||||||||||
Total Rabbi Trust Available-for-Sale Debt Securities | $ | 152 | ||||||||||||||||||||||||||||||||
The cost of these securities was determined on the basis of specific identification. | ||||||||||||||||||||||||||||||||||
PSEG periodically assesses individual securities whose fair value is less than amortized cost to determine whether the investments are considered to be other-than-temporarily impaired. For equity securities, the Rabbi Trust is invested in a commingled indexed mutual fund. Due to the commingled nature of this fund, PSEG does not have the ability to hold these securities until expected recovery. As a result, any declines in fair market value below cost are recorded as a charge to earnings. For fixed income securities, management considers its intent to sell or requirement to sell a security prior to expected recovery. In those cases where a sale is expected, any impairment would be recorded through earnings. For fixed income securities where there is no intent to sell or likely requirement to sell, management evaluates whether credit loss is a component of the impairment. If so, that portion is recorded through earnings while the noncredit loss component is recorded through Accumulated Other Comprehensive Income (Loss). The assessment of fair market value compared to cost is applied on a weighted average basis taking into account various purchase dates and initial cost of the securities. | ||||||||||||||||||||||||||||||||||
The fair value of assets in the Rabbi Trust related to PSEG, Power and PSE&G are detailed as follows: | ||||||||||||||||||||||||||||||||||
As of | As of | |||||||||||||||||||||||||||||||||
September 30, | December 31, | |||||||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||||||
Millions | ||||||||||||||||||||||||||||||||||
Power | $ | 38 | $ | 36 | ||||||||||||||||||||||||||||||
PSE&G | 41 | 61 | ||||||||||||||||||||||||||||||||
Other | 96 | 88 | ||||||||||||||||||||||||||||||||
Total Rabbi Trust Available-for-Sale Securities | $ | 175 | $ | 185 | ||||||||||||||||||||||||||||||
Power [Member] | ||||||||||||||||||||||||||||||||||
Available-for-Sale Securities | Available-for-Sale Securities | |||||||||||||||||||||||||||||||||
Nuclear Decommissioning Trust (NDT) Fund | ||||||||||||||||||||||||||||||||||
Power maintains an external master nuclear decommissioning trust to fund its share of decommissioning for its five nuclear facilities upon termination of operation. The trust contains a qualified fund and a non-qualified fund. Section 468A of the Internal Revenue Code limits the amount of money that can be contributed into a qualified fund. The trust funds are managed by third party investment advisers who operate under investment guidelines developed by Power. | ||||||||||||||||||||||||||||||||||
Power classifies investments in the NDT Fund as available-for-sale. The following tables show the fair values and gross unrealized gains and losses for the securities held in the NDT Fund: | ||||||||||||||||||||||||||||||||||
As of September 30, 2013 | ||||||||||||||||||||||||||||||||||
Cost | Gross | Gross | Fair | |||||||||||||||||||||||||||||||
Unrealized | Unrealized | Value | ||||||||||||||||||||||||||||||||
Gains | Losses | |||||||||||||||||||||||||||||||||
Millions | ||||||||||||||||||||||||||||||||||
Equity Securities | $ | 615 | $ | 234 | $ | (6 | ) | $ | 843 | |||||||||||||||||||||||||
Debt Securities | ||||||||||||||||||||||||||||||||||
Government Obligations | 411 | 5 | (6 | ) | 410 | |||||||||||||||||||||||||||||
Other Debt Securities | 313 | 11 | (4 | ) | 320 | |||||||||||||||||||||||||||||
Total Debt Securities | 724 | 16 | (10 | ) | 730 | |||||||||||||||||||||||||||||
Other Securities | 62 | — | — | 62 | ||||||||||||||||||||||||||||||
Total NDT Available-for-Sale Securities | $ | 1,401 | $ | 250 | $ | (16 | ) | $ | 1,635 | |||||||||||||||||||||||||
As of December 31, 2012 | ||||||||||||||||||||||||||||||||||
Cost | Gross | Gross | Fair | |||||||||||||||||||||||||||||||
Unrealized | Unrealized | Value | ||||||||||||||||||||||||||||||||
Gains | Losses | |||||||||||||||||||||||||||||||||
Millions | ||||||||||||||||||||||||||||||||||
Equity Securities | $ | 648 | $ | 147 | $ | (6 | ) | $ | 789 | |||||||||||||||||||||||||
Debt Securities | ||||||||||||||||||||||||||||||||||
Government Obligations | 274 | 11 | — | 285 | ||||||||||||||||||||||||||||||
Other Debt Securities | 320 | 22 | — | 342 | ||||||||||||||||||||||||||||||
Total Debt Securities | 594 | 33 | — | 627 | ||||||||||||||||||||||||||||||
Other Securities | 124 | — | — | 124 | ||||||||||||||||||||||||||||||
Total NDT Available-for-Sale Securities | $ | 1,366 | $ | 180 | $ | (6 | ) | $ | 1,540 | |||||||||||||||||||||||||
These amounts in the preceding tables do not include receivables and payables for NDT Fund transactions which have not settled at the end of each period. Such amounts are included in Accounts Receivable and Accounts Payable on the Condensed Consolidated Balance Sheets as shown in the following table. | ||||||||||||||||||||||||||||||||||
As of | As of | |||||||||||||||||||||||||||||||||
September 30, | December 31, | |||||||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||||||
Millions | ||||||||||||||||||||||||||||||||||
Accounts Receivable | $ | 43 | $ | 18 | ||||||||||||||||||||||||||||||
Accounts Payable | $ | 47 | $ | 53 | ||||||||||||||||||||||||||||||
The following table shows the value of securities in the NDT Fund that have been in an unrealized loss position for less than and greater than 12 months. | ||||||||||||||||||||||||||||||||||
As of September 30, 2013 | As of December 31, 2012 | |||||||||||||||||||||||||||||||||
Less Than 12 | Greater Than 12 | Less Than 12 | Greater Than 12 | |||||||||||||||||||||||||||||||
Months | Months | Months | Months | |||||||||||||||||||||||||||||||
Fair | Gross | Fair | Gross | Fair | Gross | Fair | Gross | |||||||||||||||||||||||||||
Value | Unrealized | Value | Unrealized | Value | Unrealized | Value | Unrealized | |||||||||||||||||||||||||||
Losses | Losses | Losses | Losses | |||||||||||||||||||||||||||||||
Millions | ||||||||||||||||||||||||||||||||||
Equity Securities (A) | $ | 78 | $ | (6 | ) | $ | — | $ | — | $ | 139 | $ | (6 | ) | $ | — | $ | — | ||||||||||||||||
Debt Securities | ||||||||||||||||||||||||||||||||||
Government Obligations (B) | 158 | (6 | ) | — | — | 34 | — | 1 | — | |||||||||||||||||||||||||
Other Debt Securities (C) | 131 | (4 | ) | — | — | 31 | — | 6 | — | |||||||||||||||||||||||||
Total Debt Securities | 289 | (10 | ) | — | — | 65 | — | 7 | — | |||||||||||||||||||||||||
Other Securities | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||
NDT Available-for-Sale Securities | $ | 367 | $ | (16 | ) | $ | — | $ | — | $ | 204 | $ | (6 | ) | $ | 7 | $ | — | ||||||||||||||||
(A) | Equity Securities—Investments in marketable equity securities within the NDT Fund are primarily in common stocks within a broad range of industries and sectors. The unrealized losses are distributed over a broad range of securities with limited impairment durations. Power does not consider these securities to be other-than-temporarily impaired as of September 30, 2013. | |||||||||||||||||||||||||||||||||
(B) | Debt Securities (Government)—Unrealized losses on Power’s NDT investments in United States Treasury obligations and Federal Agency asset-backed securities were caused by interest rate changes. Since these investments are guaranteed by the United States government or an agency of the United States government, it is not expected that these securities will settle for less than their amortized cost basis, since Power does not intend to sell nor will it be more-likely-than-not required to sell. Power does not consider these securities to be other-than-temporarily impaired as of September 30, 2013. | |||||||||||||||||||||||||||||||||
(C) | Debt Securities (Corporate)—Power’s investments in corporate bonds are limited to 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 September 30, 2013. | |||||||||||||||||||||||||||||||||
The proceeds from the sales of and the net realized gains on securities in the NDT Fund were: | ||||||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||||
Millions | ||||||||||||||||||||||||||||||||||
Proceeds from NDT Fund Sales | $ | 220 | $ | 617 | $ | 837 | $ | 1,252 | ||||||||||||||||||||||||||
Net Realized Gains (Losses) on NDT Fund: | ||||||||||||||||||||||||||||||||||
Gross Realized Gains | 35 | 94 | 95 | 136 | ||||||||||||||||||||||||||||||
Gross Realized Losses | (9 | ) | (19 | ) | (34 | ) | (41 | ) | ||||||||||||||||||||||||||
Net Realized Gains (Losses) on NDT Fund | $ | 26 | $ | 75 | $ | 61 | $ | 95 | ||||||||||||||||||||||||||
Gross realized gains and gross realized losses disclosed in the above table were recognized in Other Income and Other Deductions, respectively, in PSEG’s and Power’s Condensed Consolidated Statements of Operations. Net unrealized gains of $115 million (after-tax) were a component of Accumulated Other Comprehensive Loss on PSEG's and Power’s Condensed Consolidated Balance Sheets as of September 30, 2013. | ||||||||||||||||||||||||||||||||||
The NDT available-for-sale debt securities held as of September 30, 2013 had the following maturities: | ||||||||||||||||||||||||||||||||||
Time Frame | Fair Value | |||||||||||||||||||||||||||||||||
Millions | ||||||||||||||||||||||||||||||||||
Less than one year | $ | 57 | ||||||||||||||||||||||||||||||||
1 - 5 years | 167 | |||||||||||||||||||||||||||||||||
6 - 10 years | 186 | |||||||||||||||||||||||||||||||||
11 - 15 years | 44 | |||||||||||||||||||||||||||||||||
16 - 20 years | 19 | |||||||||||||||||||||||||||||||||
Over 20 years | 257 | |||||||||||||||||||||||||||||||||
Total NDT Available-for-Sale Debt Securities | $ | 730 | ||||||||||||||||||||||||||||||||
The cost of these securities was determined on the basis of specific identification. | ||||||||||||||||||||||||||||||||||
Power periodically assesses individual securities whose fair value is less than amortized cost to determine whether the investments are considered to be other-than-temporarily impaired. For equity securities, management considers the ability and intent to hold for a reasonable time to permit recovery in addition to the severity and duration of the loss. For fixed income securities, management considers its intent to sell or requirement to sell a security prior to expected recovery. In those cases where a sale is expected, any impairment would be recorded through earnings. For fixed income securities where there is no intent to sell or likely requirement to sell, management evaluates whether credit loss is a component of the impairment. If so, that portion is recorded through earnings while the noncredit loss component is recorded through Accumulated Other Comprehensive Income (Loss). In 2013, other-than-temporary impairments of $7 million were recognized on securities in the NDT Fund. Any subsequent recoveries in the value of these securities would be recognized in Accumulated Other Comprehensive Income (Loss) unless the securities are sold, in which case, any gain would be recognized in income. The assessment of fair market value compared to cost is applied on a weighted average basis taking into account various purchase dates and initial cost of the securities. | ||||||||||||||||||||||||||||||||||
Rabbi Trust | ||||||||||||||||||||||||||||||||||
PSEG maintains certain unfunded nonqualified benefit plans to provide supplemental retirement and deferred compensation benefits to certain key employees. Certain assets related to these plans have been set aside in a grantor trust commonly known as a “Rabbi Trust.” | ||||||||||||||||||||||||||||||||||
PSEG classifies investments in the Rabbi Trust as available-for-sale. The following tables show the fair values, gross unrealized gains and losses and amortized cost basis for the securities held in the Rabbi Trust. | ||||||||||||||||||||||||||||||||||
As of September 30, 2013 | ||||||||||||||||||||||||||||||||||
Cost | Gross | Gross | Fair | |||||||||||||||||||||||||||||||
Unrealized | Unrealized | Value | ||||||||||||||||||||||||||||||||
Gains | Losses | |||||||||||||||||||||||||||||||||
Millions | ||||||||||||||||||||||||||||||||||
Equity Securities | $ | 14 | $ | 7 | $ | — | $ | 21 | ||||||||||||||||||||||||||
Debt Securities | ||||||||||||||||||||||||||||||||||
Government Obligations | 110 | — | (2 | ) | 108 | |||||||||||||||||||||||||||||
Other Debt Securities | 45 | — | (1 | ) | 44 | |||||||||||||||||||||||||||||
Total Debt Securities | 155 | — | (3 | ) | 152 | |||||||||||||||||||||||||||||
Other Securities | 2 | — | — | 2 | ||||||||||||||||||||||||||||||
Total Rabbi Trust Available-for-Sale Securities | $ | 171 | $ | 7 | $ | (3 | ) | $ | 175 | |||||||||||||||||||||||||
Securities in the Rabbi Trust in a gross unrealized loss position have been in such position for less than twelve months. | ||||||||||||||||||||||||||||||||||
As of December 31, 2012 | ||||||||||||||||||||||||||||||||||
Cost | Gross | Gross | Fair | |||||||||||||||||||||||||||||||
Unrealized | Unrealized | Value | ||||||||||||||||||||||||||||||||
Gains | Losses | |||||||||||||||||||||||||||||||||
Millions | ||||||||||||||||||||||||||||||||||
Equity Securities | $ | 13 | $ | 5 | $ | — | $ | 18 | ||||||||||||||||||||||||||
Debt Securities | ||||||||||||||||||||||||||||||||||
Government Obligations | 114 | 3 | — | 117 | ||||||||||||||||||||||||||||||
Other Debt Securities | 45 | 2 | — | 47 | ||||||||||||||||||||||||||||||
Total Debt Securities | 159 | 5 | — | 164 | ||||||||||||||||||||||||||||||
Other Securities | 3 | — | — | 3 | ||||||||||||||||||||||||||||||
Total Rabbi Trust Available-for-Sale Securities | $ | 175 | $ | 10 | $ | — | $ | 185 | ||||||||||||||||||||||||||
These amounts in the preceding tables do not include receivables and payables for Rabbi Trust Fund transactions which have not settled at the end of each period. Such amounts are included in Accounts Receivable and Accounts Payable on the Condensed Consolidated Balance Sheets as shown in the following table. | ||||||||||||||||||||||||||||||||||
As of | As of | |||||||||||||||||||||||||||||||||
September 30, | December 31, | |||||||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||||||
Millions | ||||||||||||||||||||||||||||||||||
Accounts Receivable | $ | 3 | $ | 4 | ||||||||||||||||||||||||||||||
Accounts Payable | $ | 3 | $ | 5 | ||||||||||||||||||||||||||||||
The proceeds from the sales of and the net realized gains on securities in the Rabbi Trust Fund were: | ||||||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||||
Millions | ||||||||||||||||||||||||||||||||||
Proceeds from Rabbi Trust Sales | $ | 13 | $ | 6 | $ | 77 | $ | 221 | ||||||||||||||||||||||||||
Net Realized Gains (Losses) on Rabbi Trust: | ||||||||||||||||||||||||||||||||||
Gross Realized Gains | $ | — | $ | — | $ | 4 | $ | 6 | ||||||||||||||||||||||||||
Gross Realized Losses | — | — | (3 | ) | — | |||||||||||||||||||||||||||||
Net Realized Gains (Losses) on Rabbi Trust | $ | — | $ | — | $ | 1 | $ | 6 | ||||||||||||||||||||||||||
Gross realized gains and gross realized losses disclosed in the above table were recognized in Other Income and Other Deductions, respectively, in the Condensed Consolidated Statements of Operations. Net unrealized gains of $2 million (after-tax) were a component of Accumulated Other Comprehensive Loss on the Condensed Consolidated Balance Sheets as of September 30, 2013. The Rabbi Trust available-for-sale debt securities held as of September 30, 2013 had the following maturities: | ||||||||||||||||||||||||||||||||||
Time Frame | Fair Value | |||||||||||||||||||||||||||||||||
Millions | ||||||||||||||||||||||||||||||||||
Less than one year | $ | — | ||||||||||||||||||||||||||||||||
1 - 5 years | 59 | |||||||||||||||||||||||||||||||||
6 - 10 years | 29 | |||||||||||||||||||||||||||||||||
11 - 15 years | 7 | |||||||||||||||||||||||||||||||||
16 - 20 years | 4 | |||||||||||||||||||||||||||||||||
Over 20 years | 53 | |||||||||||||||||||||||||||||||||
Total Rabbi Trust Available-for-Sale Debt Securities | $ | 152 | ||||||||||||||||||||||||||||||||
The cost of these securities was determined on the basis of specific identification. | ||||||||||||||||||||||||||||||||||
PSEG periodically assesses individual securities whose fair value is less than amortized cost to determine whether the investments are considered to be other-than-temporarily impaired. For equity securities, the Rabbi Trust is invested in a commingled indexed mutual fund. Due to the commingled nature of this fund, PSEG does not have the ability to hold these securities until expected recovery. As a result, any declines in fair market value below cost are recorded as a charge to earnings. For fixed income securities, management considers its intent to sell or requirement to sell a security prior to expected recovery. In those cases where a sale is expected, any impairment would be recorded through earnings. For fixed income securities where there is no intent to sell or likely requirement to sell, management evaluates whether credit loss is a component of the impairment. If so, that portion is recorded through earnings while the noncredit loss component is recorded through Accumulated Other Comprehensive Income (Loss). The assessment of fair market value compared to cost is applied on a weighted average basis taking into account various purchase dates and initial cost of the securities. | ||||||||||||||||||||||||||||||||||
The fair value of assets in the Rabbi Trust related to PSEG, Power and PSE&G are detailed as follows: | ||||||||||||||||||||||||||||||||||
As of | As of | |||||||||||||||||||||||||||||||||
September 30, | December 31, | |||||||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||||||
Millions | ||||||||||||||||||||||||||||||||||
Power | $ | 38 | $ | 36 | ||||||||||||||||||||||||||||||
PSE&G | 41 | 61 | ||||||||||||||||||||||||||||||||
Other | 96 | 88 | ||||||||||||||||||||||||||||||||
Total Rabbi Trust Available-for-Sale Securities | $ | 175 | $ | 185 | ||||||||||||||||||||||||||||||
PSE And G [Member] | ||||||||||||||||||||||||||||||||||
Available-for-Sale Securities | Available-for-Sale Securities | |||||||||||||||||||||||||||||||||
Nuclear Decommissioning Trust (NDT) Fund | ||||||||||||||||||||||||||||||||||
Power maintains an external master nuclear decommissioning trust to fund its share of decommissioning for its five nuclear facilities upon termination of operation. The trust contains a qualified fund and a non-qualified fund. Section 468A of the Internal Revenue Code limits the amount of money that can be contributed into a qualified fund. The trust funds are managed by third party investment advisers who operate under investment guidelines developed by Power. | ||||||||||||||||||||||||||||||||||
Power classifies investments in the NDT Fund as available-for-sale. The following tables show the fair values and gross unrealized gains and losses for the securities held in the NDT Fund: | ||||||||||||||||||||||||||||||||||
As of September 30, 2013 | ||||||||||||||||||||||||||||||||||
Cost | Gross | Gross | Fair | |||||||||||||||||||||||||||||||
Unrealized | Unrealized | Value | ||||||||||||||||||||||||||||||||
Gains | Losses | |||||||||||||||||||||||||||||||||
Millions | ||||||||||||||||||||||||||||||||||
Equity Securities | $ | 615 | $ | 234 | $ | (6 | ) | $ | 843 | |||||||||||||||||||||||||
Debt Securities | ||||||||||||||||||||||||||||||||||
Government Obligations | 411 | 5 | (6 | ) | 410 | |||||||||||||||||||||||||||||
Other Debt Securities | 313 | 11 | (4 | ) | 320 | |||||||||||||||||||||||||||||
Total Debt Securities | 724 | 16 | (10 | ) | 730 | |||||||||||||||||||||||||||||
Other Securities | 62 | — | — | 62 | ||||||||||||||||||||||||||||||
Total NDT Available-for-Sale Securities | $ | 1,401 | $ | 250 | $ | (16 | ) | $ | 1,635 | |||||||||||||||||||||||||
As of December 31, 2012 | ||||||||||||||||||||||||||||||||||
Cost | Gross | Gross | Fair | |||||||||||||||||||||||||||||||
Unrealized | Unrealized | Value | ||||||||||||||||||||||||||||||||
Gains | Losses | |||||||||||||||||||||||||||||||||
Millions | ||||||||||||||||||||||||||||||||||
Equity Securities | $ | 648 | $ | 147 | $ | (6 | ) | $ | 789 | |||||||||||||||||||||||||
Debt Securities | ||||||||||||||||||||||||||||||||||
Government Obligations | 274 | 11 | — | 285 | ||||||||||||||||||||||||||||||
Other Debt Securities | 320 | 22 | — | 342 | ||||||||||||||||||||||||||||||
Total Debt Securities | 594 | 33 | — | 627 | ||||||||||||||||||||||||||||||
Other Securities | 124 | — | — | 124 | ||||||||||||||||||||||||||||||
Total NDT Available-for-Sale Securities | $ | 1,366 | $ | 180 | $ | (6 | ) | $ | 1,540 | |||||||||||||||||||||||||
These amounts in the preceding tables do not include receivables and payables for NDT Fund transactions which have not settled at the end of each period. Such amounts are included in Accounts Receivable and Accounts Payable on the Condensed Consolidated Balance Sheets as shown in the following table. | ||||||||||||||||||||||||||||||||||
As of | As of | |||||||||||||||||||||||||||||||||
September 30, | December 31, | |||||||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||||||
Millions | ||||||||||||||||||||||||||||||||||
Accounts Receivable | $ | 43 | $ | 18 | ||||||||||||||||||||||||||||||
Accounts Payable | $ | 47 | $ | 53 | ||||||||||||||||||||||||||||||
The following table shows the value of securities in the NDT Fund that have been in an unrealized loss position for less than and greater than 12 months. | ||||||||||||||||||||||||||||||||||
As of September 30, 2013 | As of December 31, 2012 | |||||||||||||||||||||||||||||||||
Less Than 12 | Greater Than 12 | Less Than 12 | Greater Than 12 | |||||||||||||||||||||||||||||||
Months | Months | Months | Months | |||||||||||||||||||||||||||||||
Fair | Gross | Fair | Gross | Fair | Gross | Fair | Gross | |||||||||||||||||||||||||||
Value | Unrealized | Value | Unrealized | Value | Unrealized | Value | Unrealized | |||||||||||||||||||||||||||
Losses | Losses | Losses | Losses | |||||||||||||||||||||||||||||||
Millions | ||||||||||||||||||||||||||||||||||
Equity Securities (A) | $ | 78 | $ | (6 | ) | $ | — | $ | — | $ | 139 | $ | (6 | ) | $ | — | $ | — | ||||||||||||||||
Debt Securities | ||||||||||||||||||||||||||||||||||
Government Obligations (B) | 158 | (6 | ) | — | — | 34 | — | 1 | — | |||||||||||||||||||||||||
Other Debt Securities (C) | 131 | (4 | ) | — | — | 31 | — | 6 | — | |||||||||||||||||||||||||
Total Debt Securities | 289 | (10 | ) | — | — | 65 | — | 7 | — | |||||||||||||||||||||||||
Other Securities | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||
NDT Available-for-Sale Securities | $ | 367 | $ | (16 | ) | $ | — | $ | — | $ | 204 | $ | (6 | ) | $ | 7 | $ | — | ||||||||||||||||
(A) | Equity Securities—Investments in marketable equity securities within the NDT Fund are primarily in common stocks within a broad range of industries and sectors. The unrealized losses are distributed over a broad range of securities with limited impairment durations. Power does not consider these securities to be other-than-temporarily impaired as of September 30, 2013. | |||||||||||||||||||||||||||||||||
(B) | Debt Securities (Government)—Unrealized losses on Power’s NDT investments in United States Treasury obligations and Federal Agency asset-backed securities were caused by interest rate changes. Since these investments are guaranteed by the United States government or an agency of the United States government, it is not expected that these securities will settle for less than their amortized cost basis, since Power does not intend to sell nor will it be more-likely-than-not required to sell. Power does not consider these securities to be other-than-temporarily impaired as of September 30, 2013. | |||||||||||||||||||||||||||||||||
(C) | Debt Securities (Corporate)—Power’s investments in corporate bonds are limited to 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 September 30, 2013. | |||||||||||||||||||||||||||||||||
The proceeds from the sales of and the net realized gains on securities in the NDT Fund were: | ||||||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||||
Millions | ||||||||||||||||||||||||||||||||||
Proceeds from NDT Fund Sales | $ | 220 | $ | 617 | $ | 837 | $ | 1,252 | ||||||||||||||||||||||||||
Net Realized Gains (Losses) on NDT Fund: | ||||||||||||||||||||||||||||||||||
Gross Realized Gains | 35 | 94 | 95 | 136 | ||||||||||||||||||||||||||||||
Gross Realized Losses | (9 | ) | (19 | ) | (34 | ) | (41 | ) | ||||||||||||||||||||||||||
Net Realized Gains (Losses) on NDT Fund | $ | 26 | $ | 75 | $ | 61 | $ | 95 | ||||||||||||||||||||||||||
Gross realized gains and gross realized losses disclosed in the above table were recognized in Other Income and Other Deductions, respectively, in PSEG’s and Power’s Condensed Consolidated Statements of Operations. Net unrealized gains of $115 million (after-tax) were a component of Accumulated Other Comprehensive Loss on PSEG's and Power’s Condensed Consolidated Balance Sheets as of September 30, 2013. | ||||||||||||||||||||||||||||||||||
The NDT available-for-sale debt securities held as of September 30, 2013 had the following maturities: | ||||||||||||||||||||||||||||||||||
Time Frame | Fair Value | |||||||||||||||||||||||||||||||||
Millions | ||||||||||||||||||||||||||||||||||
Less than one year | $ | 57 | ||||||||||||||||||||||||||||||||
1 - 5 years | 167 | |||||||||||||||||||||||||||||||||
6 - 10 years | 186 | |||||||||||||||||||||||||||||||||
11 - 15 years | 44 | |||||||||||||||||||||||||||||||||
16 - 20 years | 19 | |||||||||||||||||||||||||||||||||
Over 20 years | 257 | |||||||||||||||||||||||||||||||||
Total NDT Available-for-Sale Debt Securities | $ | 730 | ||||||||||||||||||||||||||||||||
The cost of these securities was determined on the basis of specific identification. | ||||||||||||||||||||||||||||||||||
Power periodically assesses individual securities whose fair value is less than amortized cost to determine whether the investments are considered to be other-than-temporarily impaired. For equity securities, management considers the ability and intent to hold for a reasonable time to permit recovery in addition to the severity and duration of the loss. For fixed income securities, management considers its intent to sell or requirement to sell a security prior to expected recovery. In those cases where a sale is expected, any impairment would be recorded through earnings. For fixed income securities where there is no intent to sell or likely requirement to sell, management evaluates whether credit loss is a component of the impairment. If so, that portion is recorded through earnings while the noncredit loss component is recorded through Accumulated Other Comprehensive Income (Loss). In 2013, other-than-temporary impairments of $7 million were recognized on securities in the NDT Fund. Any subsequent recoveries in the value of these securities would be recognized in Accumulated Other Comprehensive Income (Loss) unless the securities are sold, in which case, any gain would be recognized in income. The assessment of fair market value compared to cost is applied on a weighted average basis taking into account various purchase dates and initial cost of the securities. | ||||||||||||||||||||||||||||||||||
Rabbi Trust | ||||||||||||||||||||||||||||||||||
PSEG maintains certain unfunded nonqualified benefit plans to provide supplemental retirement and deferred compensation benefits to certain key employees. Certain assets related to these plans have been set aside in a grantor trust commonly known as a “Rabbi Trust.” | ||||||||||||||||||||||||||||||||||
PSEG classifies investments in the Rabbi Trust as available-for-sale. The following tables show the fair values, gross unrealized gains and losses and amortized cost basis for the securities held in the Rabbi Trust. | ||||||||||||||||||||||||||||||||||
As of September 30, 2013 | ||||||||||||||||||||||||||||||||||
Cost | Gross | Gross | Fair | |||||||||||||||||||||||||||||||
Unrealized | Unrealized | Value | ||||||||||||||||||||||||||||||||
Gains | Losses | |||||||||||||||||||||||||||||||||
Millions | ||||||||||||||||||||||||||||||||||
Equity Securities | $ | 14 | $ | 7 | $ | — | $ | 21 | ||||||||||||||||||||||||||
Debt Securities | ||||||||||||||||||||||||||||||||||
Government Obligations | 110 | — | (2 | ) | 108 | |||||||||||||||||||||||||||||
Other Debt Securities | 45 | — | (1 | ) | 44 | |||||||||||||||||||||||||||||
Total Debt Securities | 155 | — | (3 | ) | 152 | |||||||||||||||||||||||||||||
Other Securities | 2 | — | — | 2 | ||||||||||||||||||||||||||||||
Total Rabbi Trust Available-for-Sale Securities | $ | 171 | $ | 7 | $ | (3 | ) | $ | 175 | |||||||||||||||||||||||||
Securities in the Rabbi Trust in a gross unrealized loss position have been in such position for less than twelve months. | ||||||||||||||||||||||||||||||||||
As of December 31, 2012 | ||||||||||||||||||||||||||||||||||
Cost | Gross | Gross | Fair | |||||||||||||||||||||||||||||||
Unrealized | Unrealized | Value | ||||||||||||||||||||||||||||||||
Gains | Losses | |||||||||||||||||||||||||||||||||
Millions | ||||||||||||||||||||||||||||||||||
Equity Securities | $ | 13 | $ | 5 | $ | — | $ | 18 | ||||||||||||||||||||||||||
Debt Securities | ||||||||||||||||||||||||||||||||||
Government Obligations | 114 | 3 | — | 117 | ||||||||||||||||||||||||||||||
Other Debt Securities | 45 | 2 | — | 47 | ||||||||||||||||||||||||||||||
Total Debt Securities | 159 | 5 | — | 164 | ||||||||||||||||||||||||||||||
Other Securities | 3 | — | — | 3 | ||||||||||||||||||||||||||||||
Total Rabbi Trust Available-for-Sale Securities | $ | 175 | $ | 10 | $ | — | $ | 185 | ||||||||||||||||||||||||||
These amounts in the preceding tables do not include receivables and payables for Rabbi Trust Fund transactions which have not settled at the end of each period. Such amounts are included in Accounts Receivable and Accounts Payable on the Condensed Consolidated Balance Sheets as shown in the following table. | ||||||||||||||||||||||||||||||||||
As of | As of | |||||||||||||||||||||||||||||||||
September 30, | December 31, | |||||||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||||||
Millions | ||||||||||||||||||||||||||||||||||
Accounts Receivable | $ | 3 | $ | 4 | ||||||||||||||||||||||||||||||
Accounts Payable | $ | 3 | $ | 5 | ||||||||||||||||||||||||||||||
The proceeds from the sales of and the net realized gains on securities in the Rabbi Trust Fund were: | ||||||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||||
Millions | ||||||||||||||||||||||||||||||||||
Proceeds from Rabbi Trust Sales | $ | 13 | $ | 6 | $ | 77 | $ | 221 | ||||||||||||||||||||||||||
Net Realized Gains (Losses) on Rabbi Trust: | ||||||||||||||||||||||||||||||||||
Gross Realized Gains | $ | — | $ | — | $ | 4 | $ | 6 | ||||||||||||||||||||||||||
Gross Realized Losses | — | — | (3 | ) | — | |||||||||||||||||||||||||||||
Net Realized Gains (Losses) on Rabbi Trust | $ | — | $ | — | $ | 1 | $ | 6 | ||||||||||||||||||||||||||
Gross realized gains and gross realized losses disclosed in the above table were recognized in Other Income and Other Deductions, respectively, in the Condensed Consolidated Statements of Operations. Net unrealized gains of $2 million (after-tax) were a component of Accumulated Other Comprehensive Loss on the Condensed Consolidated Balance Sheets as of September 30, 2013. The Rabbi Trust available-for-sale debt securities held as of September 30, 2013 had the following maturities: | ||||||||||||||||||||||||||||||||||
Time Frame | Fair Value | |||||||||||||||||||||||||||||||||
Millions | ||||||||||||||||||||||||||||||||||
Less than one year | $ | — | ||||||||||||||||||||||||||||||||
1 - 5 years | 59 | |||||||||||||||||||||||||||||||||
6 - 10 years | 29 | |||||||||||||||||||||||||||||||||
11 - 15 years | 7 | |||||||||||||||||||||||||||||||||
16 - 20 years | 4 | |||||||||||||||||||||||||||||||||
Over 20 years | 53 | |||||||||||||||||||||||||||||||||
Total Rabbi Trust Available-for-Sale Debt Securities | $ | 152 | ||||||||||||||||||||||||||||||||
The cost of these securities was determined on the basis of specific identification. | ||||||||||||||||||||||||||||||||||
PSEG periodically assesses individual securities whose fair value is less than amortized cost to determine whether the investments are considered to be other-than-temporarily impaired. For equity securities, the Rabbi Trust is invested in a commingled indexed mutual fund. Due to the commingled nature of this fund, PSEG does not have the ability to hold these securities until expected recovery. As a result, any declines in fair market value below cost are recorded as a charge to earnings. For fixed income securities, management considers its intent to sell or requirement to sell a security prior to expected recovery. In those cases where a sale is expected, any impairment would be recorded through earnings. For fixed income securities where there is no intent to sell or likely requirement to sell, management evaluates whether credit loss is a component of the impairment. If so, that portion is recorded through earnings while the noncredit loss component is recorded through Accumulated Other Comprehensive Income (Loss). The assessment of fair market value compared to cost is applied on a weighted average basis taking into account various purchase dates and initial cost of the securities. | ||||||||||||||||||||||||||||||||||
The fair value of assets in the Rabbi Trust related to PSEG, Power and PSE&G are detailed as follows: | ||||||||||||||||||||||||||||||||||
As of | As of | |||||||||||||||||||||||||||||||||
September 30, | December 31, | |||||||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||||||
Millions | ||||||||||||||||||||||||||||||||||
Power | $ | 38 | $ | 36 | ||||||||||||||||||||||||||||||
PSE&G | 41 | 61 | ||||||||||||||||||||||||||||||||
Other | 96 | 88 | ||||||||||||||||||||||||||||||||
Total Rabbi Trust Available-for-Sale Securities | $ | 175 | $ | 185 | ||||||||||||||||||||||||||||||
Pension_and_OPEB
Pension and OPEB | 9 Months Ended | |||||||||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||||||||
Pension and OPEB | Pension and Other Postretirement Benefits (OPEB) | |||||||||||||||||||||||||||||||||
PSEG sponsors several qualified and nonqualified pension plans and OPEB plans covering PSEG’s and its participating affiliates’ current and former employees who meet certain eligibility criteria. The following table provides the components of net periodic benefit costs relating to all qualified and nonqualified pension and OPEB plans on an aggregate basis. | ||||||||||||||||||||||||||||||||||
Pension and OPEB costs for PSEG are detailed as follows: | ||||||||||||||||||||||||||||||||||
Pension Benefits | OPEB | Pension Benefits | OPEB | |||||||||||||||||||||||||||||||
Three Months Ended | Three Months Ended | Nine Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||
September 30, | September 30, | September 30, | September 30, | |||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||
Millions | ||||||||||||||||||||||||||||||||||
Components of Net Periodic Benefit Cost | ||||||||||||||||||||||||||||||||||
Service Cost | $ | 29 | $ | 26 | $ | 6 | $ | 5 | $ | 87 | $ | 76 | $ | 16 | $ | 13 | ||||||||||||||||||
Interest Cost | 54 | 56 | 15 | 17 | 161 | 167 | 47 | 49 | ||||||||||||||||||||||||||
Expected Return on Plan Assets | (87 | ) | (76 | ) | (6 | ) | (4 | ) | (261 | ) | (229 | ) | (16 | ) | (13 | ) | ||||||||||||||||||
Amortization of Net | ||||||||||||||||||||||||||||||||||
Transition Obligation | — | — | — | 1 | — | — | — | 2 | ||||||||||||||||||||||||||
Prior Service Cost (Credit) | (5 | ) | (5 | ) | (4 | ) | (4 | ) | (14 | ) | (14 | ) | (11 | ) | (11 | ) | ||||||||||||||||||
Actuarial Loss | 47 | 41 | 11 | 7 | 141 | 125 | 32 | 23 | ||||||||||||||||||||||||||
Net Periodic Benefit Cost | $ | 38 | $ | 42 | $ | 22 | $ | 22 | $ | 114 | $ | 125 | $ | 68 | $ | 63 | ||||||||||||||||||
Special Termination Benefits | — | 1 | — | — | — | 1 | — | — | ||||||||||||||||||||||||||
Effect of Regulatory Asset | — | — | — | 4 | — | — | — | 14 | ||||||||||||||||||||||||||
Total Benefit Costs, Including Effect of Regulatory Asset | $ | 38 | $ | 43 | $ | 22 | $ | 26 | $ | 114 | $ | 126 | $ | 68 | $ | 77 | ||||||||||||||||||
Pension and OPEB costs for Power, PSE&G and PSEG’s other subsidiaries are detailed as follows: | ||||||||||||||||||||||||||||||||||
Pension Benefits | OPEB | Pension Benefits | OPEB | |||||||||||||||||||||||||||||||
Three Months Ended | Three Months Ended | Nine Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||
September 30, | September 30, | September 30, | September 30, | |||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||
Millions | ||||||||||||||||||||||||||||||||||
Power | $ | 11 | $ | 14 | $ | 6 | $ | 5 | $ | 33 | $ | 39 | $ | 17 | $ | 14 | ||||||||||||||||||
PSE&G | 23 | 24 | 16 | 21 | 68 | 73 | 49 | 61 | ||||||||||||||||||||||||||
Other | 4 | 5 | — | — | 13 | 14 | 2 | 2 | ||||||||||||||||||||||||||
Total Benefit Costs | $ | 38 | $ | 43 | $ | 22 | $ | 26 | $ | 114 | $ | 126 | $ | 68 | $ | 77 | ||||||||||||||||||
During the three months ended March 31, 2013, PSEG contributed its entire planned contributions for the year 2013 of $145 million and $14 million into its pension and postretirement healthcare plans, respectively. | ||||||||||||||||||||||||||||||||||
Power [Member] | ||||||||||||||||||||||||||||||||||
Pension and OPEB | Pension and Other Postretirement Benefits (OPEB) | |||||||||||||||||||||||||||||||||
PSEG sponsors several qualified and nonqualified pension plans and OPEB plans covering PSEG’s and its participating affiliates’ current and former employees who meet certain eligibility criteria. The following table provides the components of net periodic benefit costs relating to all qualified and nonqualified pension and OPEB plans on an aggregate basis. | ||||||||||||||||||||||||||||||||||
Pension and OPEB costs for PSEG are detailed as follows: | ||||||||||||||||||||||||||||||||||
Pension Benefits | OPEB | Pension Benefits | OPEB | |||||||||||||||||||||||||||||||
Three Months Ended | Three Months Ended | Nine Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||
September 30, | September 30, | September 30, | September 30, | |||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||
Millions | ||||||||||||||||||||||||||||||||||
Components of Net Periodic Benefit Cost | ||||||||||||||||||||||||||||||||||
Service Cost | $ | 29 | $ | 26 | $ | 6 | $ | 5 | $ | 87 | $ | 76 | $ | 16 | $ | 13 | ||||||||||||||||||
Interest Cost | 54 | 56 | 15 | 17 | 161 | 167 | 47 | 49 | ||||||||||||||||||||||||||
Expected Return on Plan Assets | (87 | ) | (76 | ) | (6 | ) | (4 | ) | (261 | ) | (229 | ) | (16 | ) | (13 | ) | ||||||||||||||||||
Amortization of Net | ||||||||||||||||||||||||||||||||||
Transition Obligation | — | — | — | 1 | — | — | — | 2 | ||||||||||||||||||||||||||
Prior Service Cost (Credit) | (5 | ) | (5 | ) | (4 | ) | (4 | ) | (14 | ) | (14 | ) | (11 | ) | (11 | ) | ||||||||||||||||||
Actuarial Loss | 47 | 41 | 11 | 7 | 141 | 125 | 32 | 23 | ||||||||||||||||||||||||||
Net Periodic Benefit Cost | $ | 38 | $ | 42 | $ | 22 | $ | 22 | $ | 114 | $ | 125 | $ | 68 | $ | 63 | ||||||||||||||||||
Special Termination Benefits | — | 1 | — | — | — | 1 | — | — | ||||||||||||||||||||||||||
Effect of Regulatory Asset | — | — | — | 4 | — | — | — | 14 | ||||||||||||||||||||||||||
Total Benefit Costs, Including Effect of Regulatory Asset | $ | 38 | $ | 43 | $ | 22 | $ | 26 | $ | 114 | $ | 126 | $ | 68 | $ | 77 | ||||||||||||||||||
Pension and OPEB costs for Power, PSE&G and PSEG’s other subsidiaries are detailed as follows: | ||||||||||||||||||||||||||||||||||
Pension Benefits | OPEB | Pension Benefits | OPEB | |||||||||||||||||||||||||||||||
Three Months Ended | Three Months Ended | Nine Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||
September 30, | September 30, | September 30, | September 30, | |||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||
Millions | ||||||||||||||||||||||||||||||||||
Power | $ | 11 | $ | 14 | $ | 6 | $ | 5 | $ | 33 | $ | 39 | $ | 17 | $ | 14 | ||||||||||||||||||
PSE&G | 23 | 24 | 16 | 21 | 68 | 73 | 49 | 61 | ||||||||||||||||||||||||||
Other | 4 | 5 | — | — | 13 | 14 | 2 | 2 | ||||||||||||||||||||||||||
Total Benefit Costs | $ | 38 | $ | 43 | $ | 22 | $ | 26 | $ | 114 | $ | 126 | $ | 68 | $ | 77 | ||||||||||||||||||
During the three months ended March 31, 2013, PSEG contributed its entire planned contributions for the year 2013 of $145 million and $14 million into its pension and postretirement healthcare plans, respectively. | ||||||||||||||||||||||||||||||||||
PSE And G [Member] | ||||||||||||||||||||||||||||||||||
Pension and OPEB | Pension and Other Postretirement Benefits (OPEB) | |||||||||||||||||||||||||||||||||
PSEG sponsors several qualified and nonqualified pension plans and OPEB plans covering PSEG’s and its participating affiliates’ current and former employees who meet certain eligibility criteria. The following table provides the components of net periodic benefit costs relating to all qualified and nonqualified pension and OPEB plans on an aggregate basis. | ||||||||||||||||||||||||||||||||||
Pension and OPEB costs for PSEG are detailed as follows: | ||||||||||||||||||||||||||||||||||
Pension Benefits | OPEB | Pension Benefits | OPEB | |||||||||||||||||||||||||||||||
Three Months Ended | Three Months Ended | Nine Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||
September 30, | September 30, | September 30, | September 30, | |||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||
Millions | ||||||||||||||||||||||||||||||||||
Components of Net Periodic Benefit Cost | ||||||||||||||||||||||||||||||||||
Service Cost | $ | 29 | $ | 26 | $ | 6 | $ | 5 | $ | 87 | $ | 76 | $ | 16 | $ | 13 | ||||||||||||||||||
Interest Cost | 54 | 56 | 15 | 17 | 161 | 167 | 47 | 49 | ||||||||||||||||||||||||||
Expected Return on Plan Assets | (87 | ) | (76 | ) | (6 | ) | (4 | ) | (261 | ) | (229 | ) | (16 | ) | (13 | ) | ||||||||||||||||||
Amortization of Net | ||||||||||||||||||||||||||||||||||
Transition Obligation | — | — | — | 1 | — | — | — | 2 | ||||||||||||||||||||||||||
Prior Service Cost (Credit) | (5 | ) | (5 | ) | (4 | ) | (4 | ) | (14 | ) | (14 | ) | (11 | ) | (11 | ) | ||||||||||||||||||
Actuarial Loss | 47 | 41 | 11 | 7 | 141 | 125 | 32 | 23 | ||||||||||||||||||||||||||
Net Periodic Benefit Cost | $ | 38 | $ | 42 | $ | 22 | $ | 22 | $ | 114 | $ | 125 | $ | 68 | $ | 63 | ||||||||||||||||||
Special Termination Benefits | — | 1 | — | — | — | 1 | — | — | ||||||||||||||||||||||||||
Effect of Regulatory Asset | — | — | — | 4 | — | — | — | 14 | ||||||||||||||||||||||||||
Total Benefit Costs, Including Effect of Regulatory Asset | $ | 38 | $ | 43 | $ | 22 | $ | 26 | $ | 114 | $ | 126 | $ | 68 | $ | 77 | ||||||||||||||||||
Pension and OPEB costs for Power, PSE&G and PSEG’s other subsidiaries are detailed as follows: | ||||||||||||||||||||||||||||||||||
Pension Benefits | OPEB | Pension Benefits | OPEB | |||||||||||||||||||||||||||||||
Three Months Ended | Three Months Ended | Nine Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||
September 30, | September 30, | September 30, | September 30, | |||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||
Millions | ||||||||||||||||||||||||||||||||||
Power | $ | 11 | $ | 14 | $ | 6 | $ | 5 | $ | 33 | $ | 39 | $ | 17 | $ | 14 | ||||||||||||||||||
PSE&G | 23 | 24 | 16 | 21 | 68 | 73 | 49 | 61 | ||||||||||||||||||||||||||
Other | 4 | 5 | — | — | 13 | 14 | 2 | 2 | ||||||||||||||||||||||||||
Total Benefit Costs | $ | 38 | $ | 43 | $ | 22 | $ | 26 | $ | 114 | $ | 126 | $ | 68 | $ | 77 | ||||||||||||||||||
During the three months ended March 31, 2013, PSEG contributed its entire planned contributions for the year 2013 of $145 million and $14 million into its pension and postretirement healthcare plans, respectively. |
Commitments_and_Contingent_Lia
Commitments and Contingent Liabilities | 9 Months Ended | ||||||||||||||
Sep. 30, 2013 | |||||||||||||||
Commitments and Contingent Liabilities | Note 9. Commitments and Contingent Liabilities | ||||||||||||||
Guaranteed Obligations | |||||||||||||||
Power’s activities primarily involve the purchase and sale of energy and related products under transportation, physical, financial and forward contracts at fixed and variable prices. These transactions are with numerous counterparties and brokers that may require cash, cash-related instruments or guarantees. | |||||||||||||||
Power has unconditionally guaranteed payments to counterparties by its subsidiaries in commodity-related transactions in order to | |||||||||||||||
• | support current exposure, interest and other costs on sums due and payable in the ordinary course of business, and | ||||||||||||||
• | obtain credit. | ||||||||||||||
Under these agreements, guarantees cover lines of credit between entities and are often reciprocal in nature. The exposure between counterparties can move in either direction. | |||||||||||||||
In order for Power to incur a liability for the face value of the outstanding guarantees, its subsidiaries would have to | |||||||||||||||
• | fully utilize the credit granted to them by every counterparty to whom Power has provided a guarantee, and | ||||||||||||||
• | all of the related contracts would have to be “out-of-the-money” (if the contracts are terminated, Power would owe money to the counterparties). | ||||||||||||||
Power believes the probability of this result is unlikely. For this reason, Power believes that the current exposure at any point in time is a more meaningful representation of the potential liability under these guarantees. This current exposure consists of the net of accounts receivable and accounts payable and the forward value on open positions, less any collateral posted. | |||||||||||||||
Power is subject to | |||||||||||||||
• | counterparty collateral calls related to commodity contracts, and | ||||||||||||||
• | certain creditworthiness standards as guarantor under performance guarantees of its subsidiaries. | ||||||||||||||
Changes in commodity prices can have a material impact on collateral requirements under such contracts, which are posted and received primarily in the form of cash and letters of credit. Power also routinely enters into futures and options transactions for electricity and natural gas as part of its operations. These futures contracts usually require a cash margin deposit with brokers, which can change based on market movement and in accordance with exchange rules. | |||||||||||||||
In addition to the guarantees discussed above, Power has also provided payment guarantees to third parties on behalf of its affiliated companies. These guarantees support various other non-commodity related contractual obligations. | |||||||||||||||
The face value of Power's outstanding guarantees, current exposure and margin positions as of September 30, 2013 and December 31, 2012 are shown below: | |||||||||||||||
As of | As of | ||||||||||||||
September 30, | December 31, | ||||||||||||||
2013 | 2012 | ||||||||||||||
Millions | |||||||||||||||
Face Value of Outstanding Guarantees | $ | 1,551 | $ | 1,508 | |||||||||||
Exposure under Current Guarantees | $ | 201 | $ | 226 | |||||||||||
Letters of Credit Margin Posted | $ | 121 | $ | 124 | |||||||||||
Letters of Credit Margin Received | $ | 29 | $ | 69 | |||||||||||
Cash Deposited and Received | |||||||||||||||
Counterparty Cash Margin Deposited | $ | 12 | $ | 15 | |||||||||||
Counterparty Cash Margin Received | $ | — | $ | (4 | ) | ||||||||||
Net Broker Balance Deposited (Received) | $ | 8 | $ | 26 | |||||||||||
In the Event Power were to Lose its Investment Grade Rating: | |||||||||||||||
Additional Collateral that Could be Required | $ | 588 | $ | 654 | |||||||||||
Liquidity Available under PSEG’s and Power’s Credit Facilities to Post Collateral | $ | 3,537 | $ | 3,531 | |||||||||||
Additional Amounts Posted | |||||||||||||||
Other Letters of Credit | $ | 42 | $ | 45 | |||||||||||
As part of determining credit exposure, Power nets receivables and payables with the corresponding net energy contract balances. See Note 11. Financial Risk Management Activities for further discussion. In accordance with PSEG's accounting policy, where it is applicable, cash (received)/deposited is allocated against derivative asset and liability positions with the same counterparty on the face of the Balance Sheet. The remaining balances of net cash (received)/deposited after allocation are generally included in Accounts Payable and Receivable, respectively. | |||||||||||||||
In the event of a deterioration of Power’s credit rating to below investment grade, which would represent a three level downgrade from its current S&P's, Moody’s and Fitch ratings, many of these agreements allow the counterparty to demand further performance assurance. See table above. | |||||||||||||||
The SEC and the Commodity Futures Trading Commission (CFTC) continue efforts to implement new rules to effect stricter regulation over swaps and derivatives, including imposing reporting and record-keeping requirements. In August 2013, PSEG began reporting its swap transactions to a CFTC-approved swap data repository. We continue to monitor developments in this area, as the CFTC considers additional requirements such as a new position limits rule for energy commodity swaps. | |||||||||||||||
In addition to amounts for outstanding guarantees, current exposure and margin positions, Power had posted letters of credit to support various other non-energy contractual and environmental obligations. See table above. | |||||||||||||||
Environmental Matters | |||||||||||||||
Passaic River | |||||||||||||||
Historic operations of PSEG companies and the operations of hundreds of other companies along the Passaic and Hackensack Rivers are alleged by Federal and State agencies to have discharged substantial contamination into the Passaic River/Newark Bay Complex. | |||||||||||||||
Federal Comprehensive Environmental Response, Compensation and Liability Act of 1980 (CERCLA) | |||||||||||||||
The EPA has determined that an eight-mile stretch of the Passaic River in the area of Newark, New Jersey is a “facility” within the meaning of that term under CERCLA. The EPA has determined the need to perform a study of the entire 17-mile tidal reach of the lower Passaic River. | |||||||||||||||
PSE&G and certain of its predecessors conducted operations at properties in this area on or adjacent to the Passaic River. The properties included one operating electric generating station (Essex Site), which was transferred to Power, one former generating station and four former manufactured gas plant (MGP) sites. When the Essex Site was transferred from PSE&G to Power, PSE&G obtained releases and indemnities for liabilities arising out of the former Essex generating station and Power assumed any environmental liabilities. | |||||||||||||||
The EPA notified the potentially responsible parties (PRPs) that the cost of its Remedial Investigation and Feasibility Study (RI/FS) is now estimated at approximately $117 million. Seventy-three PRPs, including Power and PSE&G, agreed to assume responsibility for the RI/FS and formed the Cooperating Parties Group (CPG) to divide the associated costs according to a mutually agreed upon formula. The CPG group, currently seventy members, is presently executing the RI/FS. Approximately five percent of the RI/FS costs were attributable to PSE&G's former MGP sites and approximately one percent to Power's generating stations on an interim basis under the CPG's group agreement. Power has provided notice to insurers concerning this potential claim. | |||||||||||||||
In 2007, the EPA released a draft “Focused Feasibility Study” (FFS) that proposed various options to address the contamination cleanup of the lower eight miles of the Passaic River. The EPA estimated costs for the proposed remedy range from $1.3 billion to $3.7 billion. The work contemplated by the FFS is not subject to the cost sharing agreement discussed above. The EPA's revised proposed FFS may be released for public comment before the end of 2013. | |||||||||||||||
In June 2008, an agreement was announced between the EPA and Tierra Solutions, Inc. and Maxus Energy Corporation (Tierra/Maxus) for removal of a portion of the contaminated sediment in the Passaic River at an estimated cost of $80 million. Phase I of the removal work has been completed. Phase II is contingent on the approval of an appropriate sediment disposal facility. Tierra/Maxus have reserved their rights to seek contribution for the removal costs from the other PRPs, including Power and PSE&G. | |||||||||||||||
The EPA has advised that the levels of contaminants at Passaic River mile 10.9 will require removal in advance of the completion of the RI/FS. The CPG members, with the exception of Tierra/Maxus, which are no longer members, have agreed to and are funding the removal, currently estimated at approximately $30 million. PSEG's share of that effort is approximately three percent. | |||||||||||||||
Except for the Passaic River mile 10.9 removal, Power and PSE&G are unable to estimate their portion of the possible loss or range of loss related to the Passaic River matters. | |||||||||||||||
New Jersey Spill Compensation and Control Act (Spill Act) | |||||||||||||||
In 2005, the New Jersey Department of Environmental Protection (NJDEP) filed suit against a PRP (Occidental Chemical Corporation (OCC)) and its related companies in the New Jersey Superior Court seeking damages and reimbursement for costs expended by the State of New Jersey to address the effects of the PRP's discharge of hazardous substances into both the Passaic River and the balance of the Newark Bay Complex. Power and PSE&G are alleged to have owned, operated or contributed hazardous substances to a total of 11 sites or facilities that impacted these water bodies. In 2009, third party complaints were filed against some 320 third party defendants, including Power and PSE&G, claiming that each of the third party defendants is responsible for its proportionate share of the clean-up costs for the hazardous substances it allegedly discharged into the Passaic River and the Newark Bay Complex. Power and PSE&G filed answers to the complaints in 2010. On March 22, 2013, Power and PSE&G signed an agreement to settle the NJDEP vs. OCC litigation at a nominal cost. That settlement is contingent upon a public comment and NJDEP response period and the issuance of an order approving the settlement by the Court after conducting a fairness hearing. A stay of third-party discovery remains in place and has been extended. Power and PSE&G believe they have good and valid defenses to the allegations contained in the third party complaints and will vigorously assert those defenses should the matter not settle. Power and PSE&G are unable to estimate their portion of the possible loss or range of loss related to this matter. | |||||||||||||||
Natural Resource Damage Claims | |||||||||||||||
In 2003, the NJDEP directed PSEG, PSE&G and 56 other PRPs to arrange for a natural resource damage assessment and interim compensatory restoration of natural resource injuries along the lower Passaic River and its tributaries pursuant to the Spill Act. The NJDEP alleged that hazardous substances had been discharged from the Essex Site and the Harrison Site. The NJDEP estimated the cost of interim natural resource injury restoration activities along the lower Passaic River at approximately $950 million. In 2007, agencies of the United States Department of Commerce and the United States Department of the Interior sent letters to PSE&G and other PRPs inviting participation in an assessment of injuries to natural resources that the agencies intended to perform. In 2008, PSEG and a number of other PRPs agreed to share certain immaterial costs the trustees have incurred and will incur going forward and to work with the trustees to explore whether some or all of the trustees' claims can be resolved in a cooperative fashion. That effort is continuing. PSEG is unable to estimate its portion of the possible loss or range of loss related to this matter. | |||||||||||||||
Newark Bay Study Area | |||||||||||||||
The EPA has established the Newark Bay Study Area, which it defines as Newark Bay and portions of the Hackensack River, the Arthur Kill and the Kill Van Kull. In 2006, the EPA sent PSEG and 11 other entities notices that it considered each of the entities to be a PRP with respect to contamination in the Study Area. The notice letter requested that the PRPs fund an EPA-approved study in the Newark Bay Study Area and encouraged the PRPs to contact OCC to discuss participating in the RI/FS that OCC was conducting. The notice stated the EPA's belief that hazardous substances were released from sites owned by PSEG companies and located on the Hackensack River, including two operating electric generating stations (Hudson and Kearny sites) and one former MGP site. PSEG has participated in and partially funded the second phase of this study. Notices to fund the next phase of the study have been received but it is uncertain at this time whether the PSEG companies will consent to fund the third phase. Power and PSE&G are unable to estimate their portion of the possible loss or range of loss related to this matter. | |||||||||||||||
MGP Remediation Program | |||||||||||||||
PSE&G is working with the NJDEP to assess, investigate and remediate environmental conditions at its former MGP sites. To date, 38 sites requiring some level of remedial action have been identified. Based on its current studies, PSE&G has determined that the estimated cost to remediate all MGP sites to completion could range between $476 million and $552 million through 2021. Since no amount within the range is considered to be most likely, PSE&G has recorded a liability of $476 million as of September 30, 2013. Of this amount, $107 million was recorded in Other Current Liabilities and $369 million was reflected as Environmental Costs in Noncurrent Liabilities. PSE&G has recorded a $476 million Regulatory Asset with respect to these costs. PSE&G periodically updates its studies taking into account any new regulations or new information which could impact future remediation costs and adjusts its recorded liability accordingly. | |||||||||||||||
Prevention of Significant Deterioration (PSD)/New Source Review (NSR) | |||||||||||||||
The PSD/NSR regulations, promulgated under the Clean Air Act (CAA), require major sources of certain air pollutants to obtain permits, install pollution control technology and obtain offsets, in some circumstances, when those sources undergo a “major modification,” as defined in the regulations. The federal government may order companies that are not in compliance with the PSD/NSR regulations to install the best available control technology at the affected plants and to pay monetary penalties ranging from $25,000 to $37,500 per day for each violation, depending upon when the alleged violation occurred. | |||||||||||||||
In 2009, the EPA issued a notice of violation to Power and the other owners of the Keystone coal-fired plant in Pennsylvania, alleging, among other things, that various capital improvement projects were completed at the plant which are considered modifications (or major modifications) causing significant net emission increases of PSD/NSR air pollutants, beginning in 1985 for Keystone Unit 1 and in 1984 for Keystone Unit 2. The notice of violation states that none of these modifications underwent PSD/NSR permitting process prior to being put into service, which the EPA alleges was required under the CAA. The notice of violation states that the EPA may issue an order requiring compliance with the relevant CAA provisions and may seek injunctive relief and/or civil penalties. Power owns approximately 23% of the plant. Power cannot predict the outcome of this matter. | |||||||||||||||
Hazardous Air Pollutants Regulation | |||||||||||||||
In accordance with a ruling of the U.S. Court of Appeals of the District of Columbia (Court of Appeals), the EPA published a Maximum Achievable Control Technology (MACT) regulation in February 2012. These Mercury Air Toxics Standards (MATS) are scheduled to go into effect on April 16, 2015 and establish allowable emission levels for mercury as well as other hazardous air pollutants pursuant to the CAA. In February 2012, members of the electric generating industry filed a petition challenging the existing source National Emission Standard for Hazardous Air Pollutants (NESHAP), new source NESHAP and the New Source Performance Standard (NSPS). In March 2012, PSEG filed a motion to intervene with the Court of Appeals in support of the EPA's implementation of MATS. Litigation of these matters remains pending and the impact on the implementation schedule is unknown at this time. | |||||||||||||||
Power believes that it will not be necessary to install any additional material controls at its New Jersey facilities. Additional controls may be necessary at Power’s Bridgeport Harbor coal-fired unit at an immaterial cost. In December 2011, to comply with the MACT regulations, a decision was reached to upgrade the previously planned two flue gas desulfurization scrubbers and install Selective Catalytic Reduction (SCR) systems at Power’s jointly owned coal-fired generating facility at Conemaugh in Pennsylvania. This installation is expected to be completed in the first quarter of 2015. Power's share of this investment is estimated to be up to $147 million. | |||||||||||||||
NOx Regulation | |||||||||||||||
In April 2009, the NJDEP finalized revisions to NOx emission control regulations that impose new NOx emission reduction requirements and limits for New Jersey fossil fuel-fired electric generation units. The rule has an impact on Power’s generation fleet, as it imposes NOx emissions limits that will require capital investment for controls or the retirement of up to 86 combustion turbines (approximately 1,750 MW) and four older New Jersey steam electric generation units (approximately 400 MW) by May 30, 2015. Retirement notifications for the combustion turbines, except for Salem Unit 3, have been filed with the PJM Interconnection, LLC (PJM). The Salem Unit 3 combustion turbine (38 MW) will be transitioning to an emergency generator. Evaluations are ongoing for the steam electric generation units. | |||||||||||||||
Under current Connecticut regulations, Power’s Bridgeport and New Haven facilities have been utilizing Discrete Emission Reduction Credits (DERCs) to comply with certain NOx emission limitations that were incorporated into the facilities’ operating permits. In 2010, Power negotiated new agreements with the State of Connecticut extending the continued use of DERCs for certain emission units and equipment until May 31, 2014. | |||||||||||||||
Clean Water Act Permit Renewals | |||||||||||||||
Pursuant to the Federal Water Pollution Control Act (FWPCA), National Pollutant Discharge Elimination System (NPDES) permits expire within five years of their effective date. In order to renew these permits, but allow a plant to continue to operate, an owner or operator must file a permit application no later than six months prior to expiration of the permit. States with delegated federal authority for this program manage these permits. The NJDEP manages the permits under the New Jersey Pollutant Discharge Elimination System (NJPDES) program. Connecticut and New York also have permits to manage their respective pollutant discharge elimination system programs. | |||||||||||||||
One of the most significant NJPDES permits governing cooling water intake structures at Power is for Salem. In 2001, the NJDEP issued a renewed NJPDES permit for Salem, expiring in July 2006, allowing for the continued operation of Salem with its existing cooling water intake system. In 2006, Power filed with the NJDEP a renewal application allowing Salem to continue operating under its existing NJPDES permit until a new permit is issued. Power prepared its renewal application in accordance with the FWPCA Section 316(b) and the 316(b) rules published in 2004. | |||||||||||||||
As a result of several legal challenges to the 2004 316(b) rule by certain northeast states, environmentalists and industry groups, the rule has been suspended and has been returned to the EPA to be consistent with a 2009 United States Supreme Court decision which concluded that the EPA could rely upon cost-benefit analysis in setting the national performance standards and in providing for cost-benefit variances from those standards as part of the Phase II regulations. | |||||||||||||||
In late 2010, the EPA entered into a settlement agreement with environmental groups that established a schedule to develop a new 316(b) rule by July 27, 2012. In April 2011, the EPA published a proposed rule to establish marine life mortality standards for existing cooling water intake structures with a design flow of more than two million gallons per day. In July 2012, the EPA and environmental groups agreed to delay the deadline to June 27, 2013 for finalization of the Rule. On June 27, 2013, the EPA and environmental groups agreed to further extend the deadline to November 4, 2013. | |||||||||||||||
Power is unable to predict the outcome of this proposed rulemaking, the final form that the proposed regulations may take and the effect, if any, that they may have on its future capital requirements, financial condition, results of operations or cash flows. The results of further proceedings on this matter could have a material impact on Power’s ability to renew permits at its larger once-through cooled plants, including Salem, Hudson, Mercer, Bridgeport and possibly Sewaren and New Haven, without making significant upgrades to existing intake structures and cooling systems. The costs of those upgrades to one or more of Power’s once-through cooled plants would be material, and would require economic review to determine whether to continue operations at these facilities. For example, in Power’s application to renew its Salem permit, filed with the NJDEP in February 2006, the estimated costs for adding cooling towers for Salem were approximately $1 billion, of which Power’s share would have been approximately $575 million. These cost estimates have not been updated. Currently, potential costs associated with any closed cycle cooling requirements are not included in Power’s forecasted capital expenditures. | |||||||||||||||
On October 1, 2013, the Delaware Riverkeeper Network and several other environmental groups filed a lawsuit in the Superior Court of New Jersey seeking to compel the NJDEP to take action on Power's pending application for permit renewal at Salem either by denying the application or issuing a draft for public comment. Power is unable to predict the outcome of this proceeding. | |||||||||||||||
Capital Expenditures | |||||||||||||||
The construction programs of PSEG and its subsidiaries are currently estimated to include a base level total investment of approximately $6.4 billion for the three years ended 2015. The three-year projected capital expenditures for PSEG, Power and PSE&G are as follows: | |||||||||||||||
2013 | 2014 | 2015 | |||||||||||||
Millions | |||||||||||||||
Power | $ | 400 | $ | 365 | $ | 305 | |||||||||
PSE&G | 2,045 | 1,765 | 1,305 | ||||||||||||
Other | 95 | 40 | 30 | ||||||||||||
Total PSEG | $ | 2,540 | $ | 2,170 | $ | 1,640 | |||||||||
Power's projected capital expenditures include baseline maintenance (investments to replace major parts and enhance operational performance), investments in response to environmental, regulatory or legal mandates and nuclear expansion. PSE&G's projections include material additions and replacements in its transmission and distribution systems to meet expected growth and manage reliability. | |||||||||||||||
In May 2013, the BPU approved increased spending on renewable energy under PSE&G's Solar Loan and Solar 4 All investment programs (Solar Loan III and Solar 4 All Extension, respectively). PSE&G's projected expenditures through 2015 in the table above have been updated to include $215 million under its Solar Loan III and Solar 4 All Extension programs. | |||||||||||||||
Power | |||||||||||||||
During the nine months ended September 30, 2013, Power made $243 million of capital expenditures, including interest capitalized during construction (IDC) but excluding $176 million for nuclear fuel, primarily related to various projects at its fossil and nuclear generation stations. | |||||||||||||||
PSE&G | |||||||||||||||
During the nine months ended September 30, 2013, PSE&G made $1,648 million of capital expenditures, including $1,628 million of investment in plant, primarily for reliability of transmission and distribution systems and $20 million in solar loan investments. This does not include expenditures for cost of removal, net of salvage, of $66 million, which is included in operating cash flows. | |||||||||||||||
Energy Holdings | |||||||||||||||
Included in Other for 2013 in the preceding table is a solar project currently under construction in Arizona for which Energy Holdings had issued an outstanding guarantee of $10 million as of September 30, 2013. | |||||||||||||||
Basic Generation Service (BGS) and Basic Gas Supply Service (BGSS) | |||||||||||||||
PSE&G obtains its electric supply requirements for customers who do not purchase electric supply from third party suppliers through the annual New Jersey BGS auctions. Pursuant to applicable BPU rules, PSE&G enters into the Supplier Master Agreement with the winners of these BGS auctions following the BPU’s approval of the auction results. PSE&G has entered into contracts with Power, as well as with other winning BGS suppliers, to purchase BGS for PSE&G’s load requirements. The winners of the auction (including Power) are responsible for fulfilling all the requirements of a PJM Load Serving Entity including the provision of capacity, energy, ancillary services, transmission and any other services required by PJM. BGS suppliers assume all volume risk and customer migration risk and must satisfy New Jersey’s renewable portfolio standards. | |||||||||||||||
Power seeks to mitigate volatility in its results by contracting in advance for the sale of most of its anticipated electric output as well as its anticipated fuel needs. As part of its objective, Power has entered into contracts to directly supply PSE&G and other New Jersey electric distribution companies (EDCs) with a portion of their respective BGS requirements through the New Jersey BGS auction process, described above. | |||||||||||||||
PSE&G has contracted for its anticipated BGS-Fixed Price eligible load, as follows: | |||||||||||||||
Auction Year | |||||||||||||||
2010 | 2011 | 2012 | 2013 | ||||||||||||
36-Month Terms Ending | May-13 | May-14 | May-15 | May-16 | (A) | ||||||||||
Load (MW) | 2,800 | 2,800 | 2,900 | 2,800 | |||||||||||
$ per kWh | 0.09577 | 0.0943 | 0.08388 | 0.09218 | |||||||||||
(A) | Prices set in the 2013 BGS auction became effective on June 1, 2013 when the 2010 BGS auction agreements expired. | ||||||||||||||
PSE&G has a full requirements contract with Power to meet the gas supply requirements of PSE&G’s gas customers. Power has entered into hedges for a portion of these anticipated BGSS obligations, as permitted by the BPU. The BPU permits PSE&G to recover the cost of gas hedging up to 115 billion cubic feet or 80% of its residential gas supply annual requirements through the BGSS tariff. Current plans call for Power to hedge on behalf of PSE&G approximately 70 billion cubic feet or 50% of its residential gas supply annual requirements. For additional information, see Note 18. Related-Party Transactions. | |||||||||||||||
Minimum Fuel Purchase Requirements | |||||||||||||||
Power has various long-term fuel purchase commitments for coal through 2017 to support its fossil generation stations and for supply of nuclear fuel for the Salem, Hope Creek and Peach Bottom nuclear generating stations and for firm transportation and storage capacity for natural gas. | |||||||||||||||
Power’s strategy is to maintain certain levels of uranium and to make periodic purchases to support such levels. As such, the commitments referred to in the following table may include estimated quantities to be purchased that deviate from contractual nominal quantities. Power’s nuclear fuel commitments cover approximately 100% of its estimated uranium, enrichment and fabrication requirements through 2015 and a portion through 2017 at Salem, Hope Creek and Peach Bottom. | |||||||||||||||
Power’s various multi-year contracts for firm transportation and storage capacity for natural gas are primarily used to meet its gas supply obligations to PSE&G. These purchase obligations are consistent with Power’s strategy to enter into contracts for its fuel supply in comparable volumes to its sales contracts. | |||||||||||||||
As of September 30, 2013, the total minimum purchase requirements included in these commitments were as follows: | |||||||||||||||
Fuel Type | Power’s Share of | ||||||||||||||
Commitments | |||||||||||||||
through 2017 | |||||||||||||||
Millions | |||||||||||||||
Nuclear Fuel | |||||||||||||||
Uranium | $ | 470 | |||||||||||||
Enrichment | $ | 386 | |||||||||||||
Fabrication | $ | 146 | |||||||||||||
Natural Gas | $ | 880 | |||||||||||||
Coal | $ | 446 | |||||||||||||
Regulatory Proceedings | |||||||||||||||
New Jersey Clean Energy Program | |||||||||||||||
In June 2013, the BPU established the funding level for fiscal 2014 applicable to its Renewable Energy and Energy Efficiency programs. The fiscal year 2014 aggregate funding for all EDCs is $345 million with PSE&G's share of the funding at $200 million. PSE&G has a remaining current liability of $185 million as of September 30, 2013 for its outstanding share of the fiscal 2014 and remaining fiscal 2013 funding. The liability is reduced as normal payments are made. The liability has been recorded with an offsetting Regulatory Asset, since the costs associated with this program are recovered from PSE&G ratepayers through the Societal Benefits Charge (SBC). | |||||||||||||||
Long-Term Capacity Agreement Pilot Program (LCAPP) | |||||||||||||||
In 2011, New Jersey enacted the LCAPP Act that resulted in the selection of three generators to build a total of approximately 2,000 MW of new combined-cycle generating facilities located in New Jersey. Each of the New Jersey EDCs, including PSE&G, was directed to execute a standard offer capacity agreement (SOCA) with the selected generators, but did so under protest preserving their legal rights. The SOCA provides for the EDCs to guarantee specified annual capacity payments to the generators subject to the terms and conditions of the agreement. In July 2013, the SOCA contract with New Jersey Power Development LLC, a subsidiary of NRG Energy, Inc., was terminated early as a result of a default by the generator. SOCA contracts are for a 15-year term, which are scheduled to commence for one of the generators in the 2015/2016 delivery year and for the other generator in the 2016/2017 delivery year. These contracts are for the aggregate notional amount of approximately 1,300 MWs of installed capacity. Based upon the expected percentage of state load that PSE&G will be serving during the term of these contracts, the contracts provide that PSE&G would be responsible for the positive difference of the contract price and the annual RPM clearing price for approximately 52% or 676 MW of this amount provided that these generators satisfy their obligations under the SOCA, including the requirement that the specific generation units set forth in the contract achieve commercial operation. | |||||||||||||||
The current estimated fair value of the SOCAs is recorded as a Derivative Asset or Liability with an offsetting Regulatory Asset or Liability on PSE&G’s Condensed Consolidated Balance Sheets. See Note 12. Fair Value Measurements for additional information. | |||||||||||||||
PSE&G has taken several steps to challenge these subsidies, including joining several parties in challenging the LCAPP Act on constitutional grounds in federal court. On October 11, 2013, the U.S. District Court issued a decision finding that the LCAPP Act violated the Supremacy Clause of the U.S. Constitution and declaring the LCAPP Act null and void. On October 25, 2013, a final judgment was issued implementing the federal court's decision in this proceeding and also finding the SOCA contracts void, invalid and unenforceable and denying the request of the defendants to stay the decision pending appeal. The defendants may appeal the decision and may seek a stay from the U.S. Third Circuit Court of Appeals. Additionally, PSE&G joined an appeal in New Jersey state court challenging the BPU’s implementation of the LCAPP Act. The New Jersey State Appellate Court dismissed that appeal, without prejudice, based on the fact that the federal court had found the LCAPP Act unconstitutional and void. | |||||||||||||||
Superstorm Sandy | |||||||||||||||
In late October 2012, Superstorm Sandy caused damage to PSE&G's transmission and distribution system throughout its service territory as well as to some of Power's generation infrastructure in the northern part of New Jersey. Strong winds and the resulting storm surge caused damage to switching stations, substations and generating infrastructure. Power's estimate of the total costs required to restore its damaged facilities to their pre-Superstorm Sandy condition is approximately $364 million. | |||||||||||||||
Power incurred an additional $17 million and $67 million of storm-related expense for the three months and nine months ended September 30, 2013, respectively, primarily for repairs at certain generating stations in Power's fossil fleet. Power had incurred $85 million of costs in 2012. These costs were recognized in Operation and Maintenance Expense, offset by $25 million and $19 million of insurance recoveries in the second quarter of 2013 and the fourth quarter of 2012, respectively. | |||||||||||||||
Leveraged Lease Investments | |||||||||||||||
In January 2012, PSEG entered into a specific matter closing agreement with the IRS settling all matters related to cross border lease transactions. This agreement settled the leasing dispute with finality for all tax periods in which PSEG realized tax deductions from these transactions. In January 2012, PSEG also signed a Form 870-AD settlement agreement covering all audit issues for tax years 1997 through 2003. In March 2012, PSEG executed a Form 870-AD settlement agreement covering all audit issues for tax years 2004 through 2006. These agreements concluded the audits for these years for PSEG and the leasing issue for all tax years. For PSEG, the impact of these agreements was an increase in financial statement Income Tax Expense of approximately $175 million in the first quarter of 2012. In prior periods, PSEG had established financial statement tax liabilities for uncertain tax positions in the amount of $246 million with respect to these tax years. Accordingly, the settlement resulted in a net $71 million decrease in the first quarter of 2012 in the Income Tax Expense of PSEG. | |||||||||||||||
Cash Impact | |||||||||||||||
For tax years 1997 through 2003, the tax and interest PSEG owes the IRS as a result of this settlement will be reduced by the $320 million PSEG has on deposit with the IRS for this matter. PSEG paid a net deficiency for these years of approximately $4 million during the second quarter of 2012. Based upon the closing agreement and the Form 870-AD for tax years 2004 through 2006, PSEG owes the IRS approximately $620 million in tax and interest. Based on the settlement of the leasing dispute, for tax years 2007 through 2010, the IRS owes PSEG approximately $676 million. PSEG has filed amended returns for tax years 2007-2010 reflecting the impact of the settlement. These returns have been audited by the IRS and accepted as filed. As required by statute, the IRS presented the refund claim to the Joint Committee on Taxation for approval. In October 2012, PSEG was notified that the Joint Committee took no exception to the refund claim. In April 2013, PSEG received confirmation from the IRS which shows that overpayments from the 2008 through 2010 tax years have been applied to satisfy the liabilities due with respect to tax years 2004 through 2007. Accordingly, no further cash payments will be required with respect to the contested leasing transactions. In addition to the above, PSEG claimed a tax deduction for the accrued deficiency interest associated with this settlement in 2012, which gives rise to a cash tax savings of approximately $100 million. | |||||||||||||||
Power [Member] | |||||||||||||||
Commitments and Contingent Liabilities | Note 9. Commitments and Contingent Liabilities | ||||||||||||||
Guaranteed Obligations | |||||||||||||||
Power’s activities primarily involve the purchase and sale of energy and related products under transportation, physical, financial and forward contracts at fixed and variable prices. These transactions are with numerous counterparties and brokers that may require cash, cash-related instruments or guarantees. | |||||||||||||||
Power has unconditionally guaranteed payments to counterparties by its subsidiaries in commodity-related transactions in order to | |||||||||||||||
• | support current exposure, interest and other costs on sums due and payable in the ordinary course of business, and | ||||||||||||||
• | obtain credit. | ||||||||||||||
Under these agreements, guarantees cover lines of credit between entities and are often reciprocal in nature. The exposure between counterparties can move in either direction. | |||||||||||||||
In order for Power to incur a liability for the face value of the outstanding guarantees, its subsidiaries would have to | |||||||||||||||
• | fully utilize the credit granted to them by every counterparty to whom Power has provided a guarantee, and | ||||||||||||||
• | all of the related contracts would have to be “out-of-the-money” (if the contracts are terminated, Power would owe money to the counterparties). | ||||||||||||||
Power believes the probability of this result is unlikely. For this reason, Power believes that the current exposure at any point in time is a more meaningful representation of the potential liability under these guarantees. This current exposure consists of the net of accounts receivable and accounts payable and the forward value on open positions, less any collateral posted. | |||||||||||||||
Power is subject to | |||||||||||||||
• | counterparty collateral calls related to commodity contracts, and | ||||||||||||||
• | certain creditworthiness standards as guarantor under performance guarantees of its subsidiaries. | ||||||||||||||
Changes in commodity prices can have a material impact on collateral requirements under such contracts, which are posted and received primarily in the form of cash and letters of credit. Power also routinely enters into futures and options transactions for electricity and natural gas as part of its operations. These futures contracts usually require a cash margin deposit with brokers, which can change based on market movement and in accordance with exchange rules. | |||||||||||||||
In addition to the guarantees discussed above, Power has also provided payment guarantees to third parties on behalf of its affiliated companies. These guarantees support various other non-commodity related contractual obligations. | |||||||||||||||
The face value of Power's outstanding guarantees, current exposure and margin positions as of September 30, 2013 and December 31, 2012 are shown below: | |||||||||||||||
As of | As of | ||||||||||||||
September 30, | December 31, | ||||||||||||||
2013 | 2012 | ||||||||||||||
Millions | |||||||||||||||
Face Value of Outstanding Guarantees | $ | 1,551 | $ | 1,508 | |||||||||||
Exposure under Current Guarantees | $ | 201 | $ | 226 | |||||||||||
Letters of Credit Margin Posted | $ | 121 | $ | 124 | |||||||||||
Letters of Credit Margin Received | $ | 29 | $ | 69 | |||||||||||
Cash Deposited and Received | |||||||||||||||
Counterparty Cash Margin Deposited | $ | 12 | $ | 15 | |||||||||||
Counterparty Cash Margin Received | $ | — | $ | (4 | ) | ||||||||||
Net Broker Balance Deposited (Received) | $ | 8 | $ | 26 | |||||||||||
In the Event Power were to Lose its Investment Grade Rating: | |||||||||||||||
Additional Collateral that Could be Required | $ | 588 | $ | 654 | |||||||||||
Liquidity Available under PSEG’s and Power’s Credit Facilities to Post Collateral | $ | 3,537 | $ | 3,531 | |||||||||||
Additional Amounts Posted | |||||||||||||||
Other Letters of Credit | $ | 42 | $ | 45 | |||||||||||
As part of determining credit exposure, Power nets receivables and payables with the corresponding net energy contract balances. See Note 11. Financial Risk Management Activities for further discussion. In accordance with PSEG's accounting policy, where it is applicable, cash (received)/deposited is allocated against derivative asset and liability positions with the same counterparty on the face of the Balance Sheet. The remaining balances of net cash (received)/deposited after allocation are generally included in Accounts Payable and Receivable, respectively. | |||||||||||||||
In the event of a deterioration of Power’s credit rating to below investment grade, which would represent a three level downgrade from its current S&P's, Moody’s and Fitch ratings, many of these agreements allow the counterparty to demand further performance assurance. See table above. | |||||||||||||||
The SEC and the Commodity Futures Trading Commission (CFTC) continue efforts to implement new rules to effect stricter regulation over swaps and derivatives, including imposing reporting and record-keeping requirements. In August 2013, PSEG began reporting its swap transactions to a CFTC-approved swap data repository. We continue to monitor developments in this area, as the CFTC considers additional requirements such as a new position limits rule for energy commodity swaps. | |||||||||||||||
In addition to amounts for outstanding guarantees, current exposure and margin positions, Power had posted letters of credit to support various other non-energy contractual and environmental obligations. See table above. | |||||||||||||||
Environmental Matters | |||||||||||||||
Passaic River | |||||||||||||||
Historic operations of PSEG companies and the operations of hundreds of other companies along the Passaic and Hackensack Rivers are alleged by Federal and State agencies to have discharged substantial contamination into the Passaic River/Newark Bay Complex. | |||||||||||||||
Federal Comprehensive Environmental Response, Compensation and Liability Act of 1980 (CERCLA) | |||||||||||||||
The EPA has determined that an eight-mile stretch of the Passaic River in the area of Newark, New Jersey is a “facility” within the meaning of that term under CERCLA. The EPA has determined the need to perform a study of the entire 17-mile tidal reach of the lower Passaic River. | |||||||||||||||
PSE&G and certain of its predecessors conducted operations at properties in this area on or adjacent to the Passaic River. The properties included one operating electric generating station (Essex Site), which was transferred to Power, one former generating station and four former manufactured gas plant (MGP) sites. When the Essex Site was transferred from PSE&G to Power, PSE&G obtained releases and indemnities for liabilities arising out of the former Essex generating station and Power assumed any environmental liabilities. | |||||||||||||||
The EPA notified the potentially responsible parties (PRPs) that the cost of its Remedial Investigation and Feasibility Study (RI/FS) is now estimated at approximately $117 million. Seventy-three PRPs, including Power and PSE&G, agreed to assume responsibility for the RI/FS and formed the Cooperating Parties Group (CPG) to divide the associated costs according to a mutually agreed upon formula. The CPG group, currently seventy members, is presently executing the RI/FS. Approximately five percent of the RI/FS costs were attributable to PSE&G's former MGP sites and approximately one percent to Power's generating stations on an interim basis under the CPG's group agreement. Power has provided notice to insurers concerning this potential claim. | |||||||||||||||
In 2007, the EPA released a draft “Focused Feasibility Study” (FFS) that proposed various options to address the contamination cleanup of the lower eight miles of the Passaic River. The EPA estimated costs for the proposed remedy range from $1.3 billion to $3.7 billion. The work contemplated by the FFS is not subject to the cost sharing agreement discussed above. The EPA's revised proposed FFS may be released for public comment before the end of 2013. | |||||||||||||||
In June 2008, an agreement was announced between the EPA and Tierra Solutions, Inc. and Maxus Energy Corporation (Tierra/Maxus) for removal of a portion of the contaminated sediment in the Passaic River at an estimated cost of $80 million. Phase I of the removal work has been completed. Phase II is contingent on the approval of an appropriate sediment disposal facility. Tierra/Maxus have reserved their rights to seek contribution for the removal costs from the other PRPs, including Power and PSE&G. | |||||||||||||||
The EPA has advised that the levels of contaminants at Passaic River mile 10.9 will require removal in advance of the completion of the RI/FS. The CPG members, with the exception of Tierra/Maxus, which are no longer members, have agreed to and are funding the removal, currently estimated at approximately $30 million. PSEG's share of that effort is approximately three percent. | |||||||||||||||
Except for the Passaic River mile 10.9 removal, Power and PSE&G are unable to estimate their portion of the possible loss or range of loss related to the Passaic River matters. | |||||||||||||||
New Jersey Spill Compensation and Control Act (Spill Act) | |||||||||||||||
In 2005, the New Jersey Department of Environmental Protection (NJDEP) filed suit against a PRP (Occidental Chemical Corporation (OCC)) and its related companies in the New Jersey Superior Court seeking damages and reimbursement for costs expended by the State of New Jersey to address the effects of the PRP's discharge of hazardous substances into both the Passaic River and the balance of the Newark Bay Complex. Power and PSE&G are alleged to have owned, operated or contributed hazardous substances to a total of 11 sites or facilities that impacted these water bodies. In 2009, third party complaints were filed against some 320 third party defendants, including Power and PSE&G, claiming that each of the third party defendants is responsible for its proportionate share of the clean-up costs for the hazardous substances it allegedly discharged into the Passaic River and the Newark Bay Complex. Power and PSE&G filed answers to the complaints in 2010. On March 22, 2013, Power and PSE&G signed an agreement to settle the NJDEP vs. OCC litigation at a nominal cost. That settlement is contingent upon a public comment and NJDEP response period and the issuance of an order approving the settlement by the Court after conducting a fairness hearing. A stay of third-party discovery remains in place and has been extended. Power and PSE&G believe they have good and valid defenses to the allegations contained in the third party complaints and will vigorously assert those defenses should the matter not settle. Power and PSE&G are unable to estimate their portion of the possible loss or range of loss related to this matter. | |||||||||||||||
Natural Resource Damage Claims | |||||||||||||||
In 2003, the NJDEP directed PSEG, PSE&G and 56 other PRPs to arrange for a natural resource damage assessment and interim compensatory restoration of natural resource injuries along the lower Passaic River and its tributaries pursuant to the Spill Act. The NJDEP alleged that hazardous substances had been discharged from the Essex Site and the Harrison Site. The NJDEP estimated the cost of interim natural resource injury restoration activities along the lower Passaic River at approximately $950 million. In 2007, agencies of the United States Department of Commerce and the United States Department of the Interior sent letters to PSE&G and other PRPs inviting participation in an assessment of injuries to natural resources that the agencies intended to perform. In 2008, PSEG and a number of other PRPs agreed to share certain immaterial costs the trustees have incurred and will incur going forward and to work with the trustees to explore whether some or all of the trustees' claims can be resolved in a cooperative fashion. That effort is continuing. PSEG is unable to estimate its portion of the possible loss or range of loss related to this matter. | |||||||||||||||
Newark Bay Study Area | |||||||||||||||
The EPA has established the Newark Bay Study Area, which it defines as Newark Bay and portions of the Hackensack River, the Arthur Kill and the Kill Van Kull. In 2006, the EPA sent PSEG and 11 other entities notices that it considered each of the entities to be a PRP with respect to contamination in the Study Area. The notice letter requested that the PRPs fund an EPA-approved study in the Newark Bay Study Area and encouraged the PRPs to contact OCC to discuss participating in the RI/FS that OCC was conducting. The notice stated the EPA's belief that hazardous substances were released from sites owned by PSEG companies and located on the Hackensack River, including two operating electric generating stations (Hudson and Kearny sites) and one former MGP site. PSEG has participated in and partially funded the second phase of this study. Notices to fund the next phase of the study have been received but it is uncertain at this time whether the PSEG companies will consent to fund the third phase. Power and PSE&G are unable to estimate their portion of the possible loss or range of loss related to this matter. | |||||||||||||||
MGP Remediation Program | |||||||||||||||
PSE&G is working with the NJDEP to assess, investigate and remediate environmental conditions at its former MGP sites. To date, 38 sites requiring some level of remedial action have been identified. Based on its current studies, PSE&G has determined that the estimated cost to remediate all MGP sites to completion could range between $476 million and $552 million through 2021. Since no amount within the range is considered to be most likely, PSE&G has recorded a liability of $476 million as of September 30, 2013. Of this amount, $107 million was recorded in Other Current Liabilities and $369 million was reflected as Environmental Costs in Noncurrent Liabilities. PSE&G has recorded a $476 million Regulatory Asset with respect to these costs. PSE&G periodically updates its studies taking into account any new regulations or new information which could impact future remediation costs and adjusts its recorded liability accordingly. | |||||||||||||||
Prevention of Significant Deterioration (PSD)/New Source Review (NSR) | |||||||||||||||
The PSD/NSR regulations, promulgated under the Clean Air Act (CAA), require major sources of certain air pollutants to obtain permits, install pollution control technology and obtain offsets, in some circumstances, when those sources undergo a “major modification,” as defined in the regulations. The federal government may order companies that are not in compliance with the PSD/NSR regulations to install the best available control technology at the affected plants and to pay monetary penalties ranging from $25,000 to $37,500 per day for each violation, depending upon when the alleged violation occurred. | |||||||||||||||
In 2009, the EPA issued a notice of violation to Power and the other owners of the Keystone coal-fired plant in Pennsylvania, alleging, among other things, that various capital improvement projects were completed at the plant which are considered modifications (or major modifications) causing significant net emission increases of PSD/NSR air pollutants, beginning in 1985 for Keystone Unit 1 and in 1984 for Keystone Unit 2. The notice of violation states that none of these modifications underwent PSD/NSR permitting process prior to being put into service, which the EPA alleges was required under the CAA. The notice of violation states that the EPA may issue an order requiring compliance with the relevant CAA provisions and may seek injunctive relief and/or civil penalties. Power owns approximately 23% of the plant. Power cannot predict the outcome of this matter. | |||||||||||||||
Hazardous Air Pollutants Regulation | |||||||||||||||
In accordance with a ruling of the U.S. Court of Appeals of the District of Columbia (Court of Appeals), the EPA published a Maximum Achievable Control Technology (MACT) regulation in February 2012. These Mercury Air Toxics Standards (MATS) are scheduled to go into effect on April 16, 2015 and establish allowable emission levels for mercury as well as other hazardous air pollutants pursuant to the CAA. In February 2012, members of the electric generating industry filed a petition challenging the existing source National Emission Standard for Hazardous Air Pollutants (NESHAP), new source NESHAP and the New Source Performance Standard (NSPS). In March 2012, PSEG filed a motion to intervene with the Court of Appeals in support of the EPA's implementation of MATS. Litigation of these matters remains pending and the impact on the implementation schedule is unknown at this time. | |||||||||||||||
Power believes that it will not be necessary to install any additional material controls at its New Jersey facilities. Additional controls may be necessary at Power’s Bridgeport Harbor coal-fired unit at an immaterial cost. In December 2011, to comply with the MACT regulations, a decision was reached to upgrade the previously planned two flue gas desulfurization scrubbers and install Selective Catalytic Reduction (SCR) systems at Power’s jointly owned coal-fired generating facility at Conemaugh in Pennsylvania. This installation is expected to be completed in the first quarter of 2015. Power's share of this investment is estimated to be up to $147 million. | |||||||||||||||
NOx Regulation | |||||||||||||||
In April 2009, the NJDEP finalized revisions to NOx emission control regulations that impose new NOx emission reduction requirements and limits for New Jersey fossil fuel-fired electric generation units. The rule has an impact on Power’s generation fleet, as it imposes NOx emissions limits that will require capital investment for controls or the retirement of up to 86 combustion turbines (approximately 1,750 MW) and four older New Jersey steam electric generation units (approximately 400 MW) by May 30, 2015. Retirement notifications for the combustion turbines, except for Salem Unit 3, have been filed with the PJM Interconnection, LLC (PJM). The Salem Unit 3 combustion turbine (38 MW) will be transitioning to an emergency generator. Evaluations are ongoing for the steam electric generation units. | |||||||||||||||
Under current Connecticut regulations, Power’s Bridgeport and New Haven facilities have been utilizing Discrete Emission Reduction Credits (DERCs) to comply with certain NOx emission limitations that were incorporated into the facilities’ operating permits. In 2010, Power negotiated new agreements with the State of Connecticut extending the continued use of DERCs for certain emission units and equipment until May 31, 2014. | |||||||||||||||
Clean Water Act Permit Renewals | |||||||||||||||
Pursuant to the Federal Water Pollution Control Act (FWPCA), National Pollutant Discharge Elimination System (NPDES) permits expire within five years of their effective date. In order to renew these permits, but allow a plant to continue to operate, an owner or operator must file a permit application no later than six months prior to expiration of the permit. States with delegated federal authority for this program manage these permits. The NJDEP manages the permits under the New Jersey Pollutant Discharge Elimination System (NJPDES) program. Connecticut and New York also have permits to manage their respective pollutant discharge elimination system programs. | |||||||||||||||
One of the most significant NJPDES permits governing cooling water intake structures at Power is for Salem. In 2001, the NJDEP issued a renewed NJPDES permit for Salem, expiring in July 2006, allowing for the continued operation of Salem with its existing cooling water intake system. In 2006, Power filed with the NJDEP a renewal application allowing Salem to continue operating under its existing NJPDES permit until a new permit is issued. Power prepared its renewal application in accordance with the FWPCA Section 316(b) and the 316(b) rules published in 2004. | |||||||||||||||
As a result of several legal challenges to the 2004 316(b) rule by certain northeast states, environmentalists and industry groups, the rule has been suspended and has been returned to the EPA to be consistent with a 2009 United States Supreme Court decision which concluded that the EPA could rely upon cost-benefit analysis in setting the national performance standards and in providing for cost-benefit variances from those standards as part of the Phase II regulations. | |||||||||||||||
In late 2010, the EPA entered into a settlement agreement with environmental groups that established a schedule to develop a new 316(b) rule by July 27, 2012. In April 2011, the EPA published a proposed rule to establish marine life mortality standards for existing cooling water intake structures with a design flow of more than two million gallons per day. In July 2012, the EPA and environmental groups agreed to delay the deadline to June 27, 2013 for finalization of the Rule. On June 27, 2013, the EPA and environmental groups agreed to further extend the deadline to November 4, 2013. | |||||||||||||||
Power is unable to predict the outcome of this proposed rulemaking, the final form that the proposed regulations may take and the effect, if any, that they may have on its future capital requirements, financial condition, results of operations or cash flows. The results of further proceedings on this matter could have a material impact on Power’s ability to renew permits at its larger once-through cooled plants, including Salem, Hudson, Mercer, Bridgeport and possibly Sewaren and New Haven, without making significant upgrades to existing intake structures and cooling systems. The costs of those upgrades to one or more of Power’s once-through cooled plants would be material, and would require economic review to determine whether to continue operations at these facilities. For example, in Power’s application to renew its Salem permit, filed with the NJDEP in February 2006, the estimated costs for adding cooling towers for Salem were approximately $1 billion, of which Power’s share would have been approximately $575 million. These cost estimates have not been updated. Currently, potential costs associated with any closed cycle cooling requirements are not included in Power’s forecasted capital expenditures. | |||||||||||||||
On October 1, 2013, the Delaware Riverkeeper Network and several other environmental groups filed a lawsuit in the Superior Court of New Jersey seeking to compel the NJDEP to take action on Power's pending application for permit renewal at Salem either by denying the application or issuing a draft for public comment. Power is unable to predict the outcome of this proceeding. | |||||||||||||||
Capital Expenditures | |||||||||||||||
The construction programs of PSEG and its subsidiaries are currently estimated to include a base level total investment of approximately $6.4 billion for the three years ended 2015. The three-year projected capital expenditures for PSEG, Power and PSE&G are as follows: | |||||||||||||||
2013 | 2014 | 2015 | |||||||||||||
Millions | |||||||||||||||
Power | $ | 400 | $ | 365 | $ | 305 | |||||||||
PSE&G | 2,045 | 1,765 | 1,305 | ||||||||||||
Other | 95 | 40 | 30 | ||||||||||||
Total PSEG | $ | 2,540 | $ | 2,170 | $ | 1,640 | |||||||||
Power's projected capital expenditures include baseline maintenance (investments to replace major parts and enhance operational performance), investments in response to environmental, regulatory or legal mandates and nuclear expansion. PSE&G's projections include material additions and replacements in its transmission and distribution systems to meet expected growth and manage reliability. | |||||||||||||||
In May 2013, the BPU approved increased spending on renewable energy under PSE&G's Solar Loan and Solar 4 All investment programs (Solar Loan III and Solar 4 All Extension, respectively). PSE&G's projected expenditures through 2015 in the table above have been updated to include $215 million under its Solar Loan III and Solar 4 All Extension programs. | |||||||||||||||
Power | |||||||||||||||
During the nine months ended September 30, 2013, Power made $243 million of capital expenditures, including interest capitalized during construction (IDC) but excluding $176 million for nuclear fuel, primarily related to various projects at its fossil and nuclear generation stations. | |||||||||||||||
PSE&G | |||||||||||||||
During the nine months ended September 30, 2013, PSE&G made $1,648 million of capital expenditures, including $1,628 million of investment in plant, primarily for reliability of transmission and distribution systems and $20 million in solar loan investments. This does not include expenditures for cost of removal, net of salvage, of $66 million, which is included in operating cash flows. | |||||||||||||||
Energy Holdings | |||||||||||||||
Included in Other for 2013 in the preceding table is a solar project currently under construction in Arizona for which Energy Holdings had issued an outstanding guarantee of $10 million as of September 30, 2013. | |||||||||||||||
Basic Generation Service (BGS) and Basic Gas Supply Service (BGSS) | |||||||||||||||
PSE&G obtains its electric supply requirements for customers who do not purchase electric supply from third party suppliers through the annual New Jersey BGS auctions. Pursuant to applicable BPU rules, PSE&G enters into the Supplier Master Agreement with the winners of these BGS auctions following the BPU’s approval of the auction results. PSE&G has entered into contracts with Power, as well as with other winning BGS suppliers, to purchase BGS for PSE&G’s load requirements. The winners of the auction (including Power) are responsible for fulfilling all the requirements of a PJM Load Serving Entity including the provision of capacity, energy, ancillary services, transmission and any other services required by PJM. BGS suppliers assume all volume risk and customer migration risk and must satisfy New Jersey’s renewable portfolio standards. | |||||||||||||||
Power seeks to mitigate volatility in its results by contracting in advance for the sale of most of its anticipated electric output as well as its anticipated fuel needs. As part of its objective, Power has entered into contracts to directly supply PSE&G and other New Jersey electric distribution companies (EDCs) with a portion of their respective BGS requirements through the New Jersey BGS auction process, described above. | |||||||||||||||
PSE&G has contracted for its anticipated BGS-Fixed Price eligible load, as follows: | |||||||||||||||
Auction Year | |||||||||||||||
2010 | 2011 | 2012 | 2013 | ||||||||||||
36-Month Terms Ending | May-13 | May-14 | May-15 | May-16 | (A) | ||||||||||
Load (MW) | 2,800 | 2,800 | 2,900 | 2,800 | |||||||||||
$ per kWh | 0.09577 | 0.0943 | 0.08388 | 0.09218 | |||||||||||
(A) | Prices set in the 2013 BGS auction became effective on June 1, 2013 when the 2010 BGS auction agreements expired. | ||||||||||||||
PSE&G has a full requirements contract with Power to meet the gas supply requirements of PSE&G’s gas customers. Power has entered into hedges for a portion of these anticipated BGSS obligations, as permitted by the BPU. The BPU permits PSE&G to recover the cost of gas hedging up to 115 billion cubic feet or 80% of its residential gas supply annual requirements through the BGSS tariff. Current plans call for Power to hedge on behalf of PSE&G approximately 70 billion cubic feet or 50% of its residential gas supply annual requirements. For additional information, see Note 18. Related-Party Transactions. | |||||||||||||||
Minimum Fuel Purchase Requirements | |||||||||||||||
Power has various long-term fuel purchase commitments for coal through 2017 to support its fossil generation stations and for supply of nuclear fuel for the Salem, Hope Creek and Peach Bottom nuclear generating stations and for firm transportation and storage capacity for natural gas. | |||||||||||||||
Power’s strategy is to maintain certain levels of uranium and to make periodic purchases to support such levels. As such, the commitments referred to in the following table may include estimated quantities to be purchased that deviate from contractual nominal quantities. Power’s nuclear fuel commitments cover approximately 100% of its estimated uranium, enrichment and fabrication requirements through 2015 and a portion through 2017 at Salem, Hope Creek and Peach Bottom. | |||||||||||||||
Power’s various multi-year contracts for firm transportation and storage capacity for natural gas are primarily used to meet its gas supply obligations to PSE&G. These purchase obligations are consistent with Power’s strategy to enter into contracts for its fuel supply in comparable volumes to its sales contracts. | |||||||||||||||
As of September 30, 2013, the total minimum purchase requirements included in these commitments were as follows: | |||||||||||||||
Fuel Type | Power’s Share of | ||||||||||||||
Commitments | |||||||||||||||
through 2017 | |||||||||||||||
Millions | |||||||||||||||
Nuclear Fuel | |||||||||||||||
Uranium | $ | 470 | |||||||||||||
Enrichment | $ | 386 | |||||||||||||
Fabrication | $ | 146 | |||||||||||||
Natural Gas | $ | 880 | |||||||||||||
Coal | $ | 446 | |||||||||||||
Regulatory Proceedings | |||||||||||||||
New Jersey Clean Energy Program | |||||||||||||||
In June 2013, the BPU established the funding level for fiscal 2014 applicable to its Renewable Energy and Energy Efficiency programs. The fiscal year 2014 aggregate funding for all EDCs is $345 million with PSE&G's share of the funding at $200 million. PSE&G has a remaining current liability of $185 million as of September 30, 2013 for its outstanding share of the fiscal 2014 and remaining fiscal 2013 funding. The liability is reduced as normal payments are made. The liability has been recorded with an offsetting Regulatory Asset, since the costs associated with this program are recovered from PSE&G ratepayers through the Societal Benefits Charge (SBC). | |||||||||||||||
Long-Term Capacity Agreement Pilot Program (LCAPP) | |||||||||||||||
In 2011, New Jersey enacted the LCAPP Act that resulted in the selection of three generators to build a total of approximately 2,000 MW of new combined-cycle generating facilities located in New Jersey. Each of the New Jersey EDCs, including PSE&G, was directed to execute a standard offer capacity agreement (SOCA) with the selected generators, but did so under protest preserving their legal rights. The SOCA provides for the EDCs to guarantee specified annual capacity payments to the generators subject to the terms and conditions of the agreement. In July 2013, the SOCA contract with New Jersey Power Development LLC, a subsidiary of NRG Energy, Inc., was terminated early as a result of a default by the generator. SOCA contracts are for a 15-year term, which are scheduled to commence for one of the generators in the 2015/2016 delivery year and for the other generator in the 2016/2017 delivery year. These contracts are for the aggregate notional amount of approximately 1,300 MWs of installed capacity. Based upon the expected percentage of state load that PSE&G will be serving during the term of these contracts, the contracts provide that PSE&G would be responsible for the positive difference of the contract price and the annual RPM clearing price for approximately 52% or 676 MW of this amount provided that these generators satisfy their obligations under the SOCA, including the requirement that the specific generation units set forth in the contract achieve commercial operation. | |||||||||||||||
The current estimated fair value of the SOCAs is recorded as a Derivative Asset or Liability with an offsetting Regulatory Asset or Liability on PSE&G’s Condensed Consolidated Balance Sheets. See Note 12. Fair Value Measurements for additional information. | |||||||||||||||
PSE&G has taken several steps to challenge these subsidies, including joining several parties in challenging the LCAPP Act on constitutional grounds in federal court. On October 11, 2013, the U.S. District Court issued a decision finding that the LCAPP Act violated the Supremacy Clause of the U.S. Constitution and declaring the LCAPP Act null and void. On October 25, 2013, a final judgment was issued implementing the federal court's decision in this proceeding and also finding the SOCA contracts void, invalid and unenforceable and denying the request of the defendants to stay the decision pending appeal. The defendants may appeal the decision and may seek a stay from the U.S. Third Circuit Court of Appeals. Additionally, PSE&G joined an appeal in New Jersey state court challenging the BPU’s implementation of the LCAPP Act. The New Jersey State Appellate Court dismissed that appeal, without prejudice, based on the fact that the federal court had found the LCAPP Act unconstitutional and void. | |||||||||||||||
Superstorm Sandy | |||||||||||||||
In late October 2012, Superstorm Sandy caused damage to PSE&G's transmission and distribution system throughout its service territory as well as to some of Power's generation infrastructure in the northern part of New Jersey. Strong winds and the resulting storm surge caused damage to switching stations, substations and generating infrastructure. Power's estimate of the total costs required to restore its damaged facilities to their pre-Superstorm Sandy condition is approximately $364 million. | |||||||||||||||
Power incurred an additional $17 million and $67 million of storm-related expense for the three months and nine months ended September 30, 2013, respectively, primarily for repairs at certain generating stations in Power's fossil fleet. Power had incurred $85 million of costs in 2012. These costs were recognized in Operation and Maintenance Expense, offset by $25 million and $19 million of insurance recoveries in the second quarter of 2013 and the fourth quarter of 2012, respectively. | |||||||||||||||
Leveraged Lease Investments | |||||||||||||||
In January 2012, PSEG entered into a specific matter closing agreement with the IRS settling all matters related to cross border lease transactions. This agreement settled the leasing dispute with finality for all tax periods in which PSEG realized tax deductions from these transactions. In January 2012, PSEG also signed a Form 870-AD settlement agreement covering all audit issues for tax years 1997 through 2003. In March 2012, PSEG executed a Form 870-AD settlement agreement covering all audit issues for tax years 2004 through 2006. These agreements concluded the audits for these years for PSEG and the leasing issue for all tax years. For PSEG, the impact of these agreements was an increase in financial statement Income Tax Expense of approximately $175 million in the first quarter of 2012. In prior periods, PSEG had established financial statement tax liabilities for uncertain tax positions in the amount of $246 million with respect to these tax years. Accordingly, the settlement resulted in a net $71 million decrease in the first quarter of 2012 in the Income Tax Expense of PSEG. | |||||||||||||||
Cash Impact | |||||||||||||||
For tax years 1997 through 2003, the tax and interest PSEG owes the IRS as a result of this settlement will be reduced by the $320 million PSEG has on deposit with the IRS for this matter. PSEG paid a net deficiency for these years of approximately $4 million during the second quarter of 2012. Based upon the closing agreement and the Form 870-AD for tax years 2004 through 2006, PSEG owes the IRS approximately $620 million in tax and interest. Based on the settlement of the leasing dispute, for tax years 2007 through 2010, the IRS owes PSEG approximately $676 million. PSEG has filed amended returns for tax years 2007-2010 reflecting the impact of the settlement. These returns have been audited by the IRS and accepted as filed. As required by statute, the IRS presented the refund claim to the Joint Committee on Taxation for approval. In October 2012, PSEG was notified that the Joint Committee took no exception to the refund claim. In April 2013, PSEG received confirmation from the IRS which shows that overpayments from the 2008 through 2010 tax years have been applied to satisfy the liabilities due with respect to tax years 2004 through 2007. Accordingly, no further cash payments will be required with respect to the contested leasing transactions. In addition to the above, PSEG claimed a tax deduction for the accrued deficiency interest associated with this settlement in 2012, which gives rise to a cash tax savings of approximately $100 million. | |||||||||||||||
PSE And G [Member] | |||||||||||||||
Commitments and Contingent Liabilities | Note 9. Commitments and Contingent Liabilities | ||||||||||||||
Guaranteed Obligations | |||||||||||||||
Power’s activities primarily involve the purchase and sale of energy and related products under transportation, physical, financial and forward contracts at fixed and variable prices. These transactions are with numerous counterparties and brokers that may require cash, cash-related instruments or guarantees. | |||||||||||||||
Power has unconditionally guaranteed payments to counterparties by its subsidiaries in commodity-related transactions in order to | |||||||||||||||
• | support current exposure, interest and other costs on sums due and payable in the ordinary course of business, and | ||||||||||||||
• | obtain credit. | ||||||||||||||
Under these agreements, guarantees cover lines of credit between entities and are often reciprocal in nature. The exposure between counterparties can move in either direction. | |||||||||||||||
In order for Power to incur a liability for the face value of the outstanding guarantees, its subsidiaries would have to | |||||||||||||||
• | fully utilize the credit granted to them by every counterparty to whom Power has provided a guarantee, and | ||||||||||||||
• | all of the related contracts would have to be “out-of-the-money” (if the contracts are terminated, Power would owe money to the counterparties). | ||||||||||||||
Power believes the probability of this result is unlikely. For this reason, Power believes that the current exposure at any point in time is a more meaningful representation of the potential liability under these guarantees. This current exposure consists of the net of accounts receivable and accounts payable and the forward value on open positions, less any collateral posted. | |||||||||||||||
Power is subject to | |||||||||||||||
• | counterparty collateral calls related to commodity contracts, and | ||||||||||||||
• | certain creditworthiness standards as guarantor under performance guarantees of its subsidiaries. | ||||||||||||||
Changes in commodity prices can have a material impact on collateral requirements under such contracts, which are posted and received primarily in the form of cash and letters of credit. Power also routinely enters into futures and options transactions for electricity and natural gas as part of its operations. These futures contracts usually require a cash margin deposit with brokers, which can change based on market movement and in accordance with exchange rules. | |||||||||||||||
In addition to the guarantees discussed above, Power has also provided payment guarantees to third parties on behalf of its affiliated companies. These guarantees support various other non-commodity related contractual obligations. | |||||||||||||||
The face value of Power's outstanding guarantees, current exposure and margin positions as of September 30, 2013 and December 31, 2012 are shown below: | |||||||||||||||
As of | As of | ||||||||||||||
September 30, | December 31, | ||||||||||||||
2013 | 2012 | ||||||||||||||
Millions | |||||||||||||||
Face Value of Outstanding Guarantees | $ | 1,551 | $ | 1,508 | |||||||||||
Exposure under Current Guarantees | $ | 201 | $ | 226 | |||||||||||
Letters of Credit Margin Posted | $ | 121 | $ | 124 | |||||||||||
Letters of Credit Margin Received | $ | 29 | $ | 69 | |||||||||||
Cash Deposited and Received | |||||||||||||||
Counterparty Cash Margin Deposited | $ | 12 | $ | 15 | |||||||||||
Counterparty Cash Margin Received | $ | — | $ | (4 | ) | ||||||||||
Net Broker Balance Deposited (Received) | $ | 8 | $ | 26 | |||||||||||
In the Event Power were to Lose its Investment Grade Rating: | |||||||||||||||
Additional Collateral that Could be Required | $ | 588 | $ | 654 | |||||||||||
Liquidity Available under PSEG’s and Power’s Credit Facilities to Post Collateral | $ | 3,537 | $ | 3,531 | |||||||||||
Additional Amounts Posted | |||||||||||||||
Other Letters of Credit | $ | 42 | $ | 45 | |||||||||||
As part of determining credit exposure, Power nets receivables and payables with the corresponding net energy contract balances. See Note 11. Financial Risk Management Activities for further discussion. In accordance with PSEG's accounting policy, where it is applicable, cash (received)/deposited is allocated against derivative asset and liability positions with the same counterparty on the face of the Balance Sheet. The remaining balances of net cash (received)/deposited after allocation are generally included in Accounts Payable and Receivable, respectively. | |||||||||||||||
In the event of a deterioration of Power’s credit rating to below investment grade, which would represent a three level downgrade from its current S&P's, Moody’s and Fitch ratings, many of these agreements allow the counterparty to demand further performance assurance. See table above. | |||||||||||||||
The SEC and the Commodity Futures Trading Commission (CFTC) continue efforts to implement new rules to effect stricter regulation over swaps and derivatives, including imposing reporting and record-keeping requirements. In August 2013, PSEG began reporting its swap transactions to a CFTC-approved swap data repository. We continue to monitor developments in this area, as the CFTC considers additional requirements such as a new position limits rule for energy commodity swaps. | |||||||||||||||
In addition to amounts for outstanding guarantees, current exposure and margin positions, Power had posted letters of credit to support various other non-energy contractual and environmental obligations. See table above. | |||||||||||||||
Environmental Matters | |||||||||||||||
Passaic River | |||||||||||||||
Historic operations of PSEG companies and the operations of hundreds of other companies along the Passaic and Hackensack Rivers are alleged by Federal and State agencies to have discharged substantial contamination into the Passaic River/Newark Bay Complex. | |||||||||||||||
Federal Comprehensive Environmental Response, Compensation and Liability Act of 1980 (CERCLA) | |||||||||||||||
The EPA has determined that an eight-mile stretch of the Passaic River in the area of Newark, New Jersey is a “facility” within the meaning of that term under CERCLA. The EPA has determined the need to perform a study of the entire 17-mile tidal reach of the lower Passaic River. | |||||||||||||||
PSE&G and certain of its predecessors conducted operations at properties in this area on or adjacent to the Passaic River. The properties included one operating electric generating station (Essex Site), which was transferred to Power, one former generating station and four former manufactured gas plant (MGP) sites. When the Essex Site was transferred from PSE&G to Power, PSE&G obtained releases and indemnities for liabilities arising out of the former Essex generating station and Power assumed any environmental liabilities. | |||||||||||||||
The EPA notified the potentially responsible parties (PRPs) that the cost of its Remedial Investigation and Feasibility Study (RI/FS) is now estimated at approximately $117 million. Seventy-three PRPs, including Power and PSE&G, agreed to assume responsibility for the RI/FS and formed the Cooperating Parties Group (CPG) to divide the associated costs according to a mutually agreed upon formula. The CPG group, currently seventy members, is presently executing the RI/FS. Approximately five percent of the RI/FS costs were attributable to PSE&G's former MGP sites and approximately one percent to Power's generating stations on an interim basis under the CPG's group agreement. Power has provided notice to insurers concerning this potential claim. | |||||||||||||||
In 2007, the EPA released a draft “Focused Feasibility Study” (FFS) that proposed various options to address the contamination cleanup of the lower eight miles of the Passaic River. The EPA estimated costs for the proposed remedy range from $1.3 billion to $3.7 billion. The work contemplated by the FFS is not subject to the cost sharing agreement discussed above. The EPA's revised proposed FFS may be released for public comment before the end of 2013. | |||||||||||||||
In June 2008, an agreement was announced between the EPA and Tierra Solutions, Inc. and Maxus Energy Corporation (Tierra/Maxus) for removal of a portion of the contaminated sediment in the Passaic River at an estimated cost of $80 million. Phase I of the removal work has been completed. Phase II is contingent on the approval of an appropriate sediment disposal facility. Tierra/Maxus have reserved their rights to seek contribution for the removal costs from the other PRPs, including Power and PSE&G. | |||||||||||||||
The EPA has advised that the levels of contaminants at Passaic River mile 10.9 will require removal in advance of the completion of the RI/FS. The CPG members, with the exception of Tierra/Maxus, which are no longer members, have agreed to and are funding the removal, currently estimated at approximately $30 million. PSEG's share of that effort is approximately three percent. | |||||||||||||||
Except for the Passaic River mile 10.9 removal, Power and PSE&G are unable to estimate their portion of the possible loss or range of loss related to the Passaic River matters. | |||||||||||||||
New Jersey Spill Compensation and Control Act (Spill Act) | |||||||||||||||
In 2005, the New Jersey Department of Environmental Protection (NJDEP) filed suit against a PRP (Occidental Chemical Corporation (OCC)) and its related companies in the New Jersey Superior Court seeking damages and reimbursement for costs expended by the State of New Jersey to address the effects of the PRP's discharge of hazardous substances into both the Passaic River and the balance of the Newark Bay Complex. Power and PSE&G are alleged to have owned, operated or contributed hazardous substances to a total of 11 sites or facilities that impacted these water bodies. In 2009, third party complaints were filed against some 320 third party defendants, including Power and PSE&G, claiming that each of the third party defendants is responsible for its proportionate share of the clean-up costs for the hazardous substances it allegedly discharged into the Passaic River and the Newark Bay Complex. Power and PSE&G filed answers to the complaints in 2010. On March 22, 2013, Power and PSE&G signed an agreement to settle the NJDEP vs. OCC litigation at a nominal cost. That settlement is contingent upon a public comment and NJDEP response period and the issuance of an order approving the settlement by the Court after conducting a fairness hearing. A stay of third-party discovery remains in place and has been extended. Power and PSE&G believe they have good and valid defenses to the allegations contained in the third party complaints and will vigorously assert those defenses should the matter not settle. Power and PSE&G are unable to estimate their portion of the possible loss or range of loss related to this matter. | |||||||||||||||
Natural Resource Damage Claims | |||||||||||||||
In 2003, the NJDEP directed PSEG, PSE&G and 56 other PRPs to arrange for a natural resource damage assessment and interim compensatory restoration of natural resource injuries along the lower Passaic River and its tributaries pursuant to the Spill Act. The NJDEP alleged that hazardous substances had been discharged from the Essex Site and the Harrison Site. The NJDEP estimated the cost of interim natural resource injury restoration activities along the lower Passaic River at approximately $950 million. In 2007, agencies of the United States Department of Commerce and the United States Department of the Interior sent letters to PSE&G and other PRPs inviting participation in an assessment of injuries to natural resources that the agencies intended to perform. In 2008, PSEG and a number of other PRPs agreed to share certain immaterial costs the trustees have incurred and will incur going forward and to work with the trustees to explore whether some or all of the trustees' claims can be resolved in a cooperative fashion. That effort is continuing. PSEG is unable to estimate its portion of the possible loss or range of loss related to this matter. | |||||||||||||||
Newark Bay Study Area | |||||||||||||||
The EPA has established the Newark Bay Study Area, which it defines as Newark Bay and portions of the Hackensack River, the Arthur Kill and the Kill Van Kull. In 2006, the EPA sent PSEG and 11 other entities notices that it considered each of the entities to be a PRP with respect to contamination in the Study Area. The notice letter requested that the PRPs fund an EPA-approved study in the Newark Bay Study Area and encouraged the PRPs to contact OCC to discuss participating in the RI/FS that OCC was conducting. The notice stated the EPA's belief that hazardous substances were released from sites owned by PSEG companies and located on the Hackensack River, including two operating electric generating stations (Hudson and Kearny sites) and one former MGP site. PSEG has participated in and partially funded the second phase of this study. Notices to fund the next phase of the study have been received but it is uncertain at this time whether the PSEG companies will consent to fund the third phase. Power and PSE&G are unable to estimate their portion of the possible loss or range of loss related to this matter. | |||||||||||||||
MGP Remediation Program | |||||||||||||||
PSE&G is working with the NJDEP to assess, investigate and remediate environmental conditions at its former MGP sites. To date, 38 sites requiring some level of remedial action have been identified. Based on its current studies, PSE&G has determined that the estimated cost to remediate all MGP sites to completion could range between $476 million and $552 million through 2021. Since no amount within the range is considered to be most likely, PSE&G has recorded a liability of $476 million as of September 30, 2013. Of this amount, $107 million was recorded in Other Current Liabilities and $369 million was reflected as Environmental Costs in Noncurrent Liabilities. PSE&G has recorded a $476 million Regulatory Asset with respect to these costs. PSE&G periodically updates its studies taking into account any new regulations or new information which could impact future remediation costs and adjusts its recorded liability accordingly. | |||||||||||||||
Prevention of Significant Deterioration (PSD)/New Source Review (NSR) | |||||||||||||||
The PSD/NSR regulations, promulgated under the Clean Air Act (CAA), require major sources of certain air pollutants to obtain permits, install pollution control technology and obtain offsets, in some circumstances, when those sources undergo a “major modification,” as defined in the regulations. The federal government may order companies that are not in compliance with the PSD/NSR regulations to install the best available control technology at the affected plants and to pay monetary penalties ranging from $25,000 to $37,500 per day for each violation, depending upon when the alleged violation occurred. | |||||||||||||||
In 2009, the EPA issued a notice of violation to Power and the other owners of the Keystone coal-fired plant in Pennsylvania, alleging, among other things, that various capital improvement projects were completed at the plant which are considered modifications (or major modifications) causing significant net emission increases of PSD/NSR air pollutants, beginning in 1985 for Keystone Unit 1 and in 1984 for Keystone Unit 2. The notice of violation states that none of these modifications underwent PSD/NSR permitting process prior to being put into service, which the EPA alleges was required under the CAA. The notice of violation states that the EPA may issue an order requiring compliance with the relevant CAA provisions and may seek injunctive relief and/or civil penalties. Power owns approximately 23% of the plant. Power cannot predict the outcome of this matter. | |||||||||||||||
Hazardous Air Pollutants Regulation | |||||||||||||||
In accordance with a ruling of the U.S. Court of Appeals of the District of Columbia (Court of Appeals), the EPA published a Maximum Achievable Control Technology (MACT) regulation in February 2012. These Mercury Air Toxics Standards (MATS) are scheduled to go into effect on April 16, 2015 and establish allowable emission levels for mercury as well as other hazardous air pollutants pursuant to the CAA. In February 2012, members of the electric generating industry filed a petition challenging the existing source National Emission Standard for Hazardous Air Pollutants (NESHAP), new source NESHAP and the New Source Performance Standard (NSPS). In March 2012, PSEG filed a motion to intervene with the Court of Appeals in support of the EPA's implementation of MATS. Litigation of these matters remains pending and the impact on the implementation schedule is unknown at this time. | |||||||||||||||
Power believes that it will not be necessary to install any additional material controls at its New Jersey facilities. Additional controls may be necessary at Power’s Bridgeport Harbor coal-fired unit at an immaterial cost. In December 2011, to comply with the MACT regulations, a decision was reached to upgrade the previously planned two flue gas desulfurization scrubbers and install Selective Catalytic Reduction (SCR) systems at Power’s jointly owned coal-fired generating facility at Conemaugh in Pennsylvania. This installation is expected to be completed in the first quarter of 2015. Power's share of this investment is estimated to be up to $147 million. | |||||||||||||||
NOx Regulation | |||||||||||||||
In April 2009, the NJDEP finalized revisions to NOx emission control regulations that impose new NOx emission reduction requirements and limits for New Jersey fossil fuel-fired electric generation units. The rule has an impact on Power’s generation fleet, as it imposes NOx emissions limits that will require capital investment for controls or the retirement of up to 86 combustion turbines (approximately 1,750 MW) and four older New Jersey steam electric generation units (approximately 400 MW) by May 30, 2015. Retirement notifications for the combustion turbines, except for Salem Unit 3, have been filed with the PJM Interconnection, LLC (PJM). The Salem Unit 3 combustion turbine (38 MW) will be transitioning to an emergency generator. Evaluations are ongoing for the steam electric generation units. | |||||||||||||||
Under current Connecticut regulations, Power’s Bridgeport and New Haven facilities have been utilizing Discrete Emission Reduction Credits (DERCs) to comply with certain NOx emission limitations that were incorporated into the facilities’ operating permits. In 2010, Power negotiated new agreements with the State of Connecticut extending the continued use of DERCs for certain emission units and equipment until May 31, 2014. | |||||||||||||||
Clean Water Act Permit Renewals | |||||||||||||||
Pursuant to the Federal Water Pollution Control Act (FWPCA), National Pollutant Discharge Elimination System (NPDES) permits expire within five years of their effective date. In order to renew these permits, but allow a plant to continue to operate, an owner or operator must file a permit application no later than six months prior to expiration of the permit. States with delegated federal authority for this program manage these permits. The NJDEP manages the permits under the New Jersey Pollutant Discharge Elimination System (NJPDES) program. Connecticut and New York also have permits to manage their respective pollutant discharge elimination system programs. | |||||||||||||||
One of the most significant NJPDES permits governing cooling water intake structures at Power is for Salem. In 2001, the NJDEP issued a renewed NJPDES permit for Salem, expiring in July 2006, allowing for the continued operation of Salem with its existing cooling water intake system. In 2006, Power filed with the NJDEP a renewal application allowing Salem to continue operating under its existing NJPDES permit until a new permit is issued. Power prepared its renewal application in accordance with the FWPCA Section 316(b) and the 316(b) rules published in 2004. | |||||||||||||||
As a result of several legal challenges to the 2004 316(b) rule by certain northeast states, environmentalists and industry groups, the rule has been suspended and has been returned to the EPA to be consistent with a 2009 United States Supreme Court decision which concluded that the EPA could rely upon cost-benefit analysis in setting the national performance standards and in providing for cost-benefit variances from those standards as part of the Phase II regulations. | |||||||||||||||
In late 2010, the EPA entered into a settlement agreement with environmental groups that established a schedule to develop a new 316(b) rule by July 27, 2012. In April 2011, the EPA published a proposed rule to establish marine life mortality standards for existing cooling water intake structures with a design flow of more than two million gallons per day. In July 2012, the EPA and environmental groups agreed to delay the deadline to June 27, 2013 for finalization of the Rule. On June 27, 2013, the EPA and environmental groups agreed to further extend the deadline to November 4, 2013. | |||||||||||||||
Power is unable to predict the outcome of this proposed rulemaking, the final form that the proposed regulations may take and the effect, if any, that they may have on its future capital requirements, financial condition, results of operations or cash flows. The results of further proceedings on this matter could have a material impact on Power’s ability to renew permits at its larger once-through cooled plants, including Salem, Hudson, Mercer, Bridgeport and possibly Sewaren and New Haven, without making significant upgrades to existing intake structures and cooling systems. The costs of those upgrades to one or more of Power’s once-through cooled plants would be material, and would require economic review to determine whether to continue operations at these facilities. For example, in Power’s application to renew its Salem permit, filed with the NJDEP in February 2006, the estimated costs for adding cooling towers for Salem were approximately $1 billion, of which Power’s share would have been approximately $575 million. These cost estimates have not been updated. Currently, potential costs associated with any closed cycle cooling requirements are not included in Power’s forecasted capital expenditures. | |||||||||||||||
On October 1, 2013, the Delaware Riverkeeper Network and several other environmental groups filed a lawsuit in the Superior Court of New Jersey seeking to compel the NJDEP to take action on Power's pending application for permit renewal at Salem either by denying the application or issuing a draft for public comment. Power is unable to predict the outcome of this proceeding. | |||||||||||||||
Capital Expenditures | |||||||||||||||
The construction programs of PSEG and its subsidiaries are currently estimated to include a base level total investment of approximately $6.4 billion for the three years ended 2015. The three-year projected capital expenditures for PSEG, Power and PSE&G are as follows: | |||||||||||||||
2013 | 2014 | 2015 | |||||||||||||
Millions | |||||||||||||||
Power | $ | 400 | $ | 365 | $ | 305 | |||||||||
PSE&G | 2,045 | 1,765 | 1,305 | ||||||||||||
Other | 95 | 40 | 30 | ||||||||||||
Total PSEG | $ | 2,540 | $ | 2,170 | $ | 1,640 | |||||||||
Power's projected capital expenditures include baseline maintenance (investments to replace major parts and enhance operational performance), investments in response to environmental, regulatory or legal mandates and nuclear expansion. PSE&G's projections include material additions and replacements in its transmission and distribution systems to meet expected growth and manage reliability. | |||||||||||||||
In May 2013, the BPU approved increased spending on renewable energy under PSE&G's Solar Loan and Solar 4 All investment programs (Solar Loan III and Solar 4 All Extension, respectively). PSE&G's projected expenditures through 2015 in the table above have been updated to include $215 million under its Solar Loan III and Solar 4 All Extension programs. | |||||||||||||||
Power | |||||||||||||||
During the nine months ended September 30, 2013, Power made $243 million of capital expenditures, including interest capitalized during construction (IDC) but excluding $176 million for nuclear fuel, primarily related to various projects at its fossil and nuclear generation stations. | |||||||||||||||
PSE&G | |||||||||||||||
During the nine months ended September 30, 2013, PSE&G made $1,648 million of capital expenditures, including $1,628 million of investment in plant, primarily for reliability of transmission and distribution systems and $20 million in solar loan investments. This does not include expenditures for cost of removal, net of salvage, of $66 million, which is included in operating cash flows. | |||||||||||||||
Energy Holdings | |||||||||||||||
Included in Other for 2013 in the preceding table is a solar project currently under construction in Arizona for which Energy Holdings had issued an outstanding guarantee of $10 million as of September 30, 2013. | |||||||||||||||
Basic Generation Service (BGS) and Basic Gas Supply Service (BGSS) | |||||||||||||||
PSE&G obtains its electric supply requirements for customers who do not purchase electric supply from third party suppliers through the annual New Jersey BGS auctions. Pursuant to applicable BPU rules, PSE&G enters into the Supplier Master Agreement with the winners of these BGS auctions following the BPU’s approval of the auction results. PSE&G has entered into contracts with Power, as well as with other winning BGS suppliers, to purchase BGS for PSE&G’s load requirements. The winners of the auction (including Power) are responsible for fulfilling all the requirements of a PJM Load Serving Entity including the provision of capacity, energy, ancillary services, transmission and any other services required by PJM. BGS suppliers assume all volume risk and customer migration risk and must satisfy New Jersey’s renewable portfolio standards. | |||||||||||||||
Power seeks to mitigate volatility in its results by contracting in advance for the sale of most of its anticipated electric output as well as its anticipated fuel needs. As part of its objective, Power has entered into contracts to directly supply PSE&G and other New Jersey electric distribution companies (EDCs) with a portion of their respective BGS requirements through the New Jersey BGS auction process, described above. | |||||||||||||||
PSE&G has contracted for its anticipated BGS-Fixed Price eligible load, as follows: | |||||||||||||||
Auction Year | |||||||||||||||
2010 | 2011 | 2012 | 2013 | ||||||||||||
36-Month Terms Ending | May-13 | May-14 | May-15 | May-16 | (A) | ||||||||||
Load (MW) | 2,800 | 2,800 | 2,900 | 2,800 | |||||||||||
$ per kWh | 0.09577 | 0.0943 | 0.08388 | 0.09218 | |||||||||||
(A) | Prices set in the 2013 BGS auction became effective on June 1, 2013 when the 2010 BGS auction agreements expired. | ||||||||||||||
PSE&G has a full requirements contract with Power to meet the gas supply requirements of PSE&G’s gas customers. Power has entered into hedges for a portion of these anticipated BGSS obligations, as permitted by the BPU. The BPU permits PSE&G to recover the cost of gas hedging up to 115 billion cubic feet or 80% of its residential gas supply annual requirements through the BGSS tariff. Current plans call for Power to hedge on behalf of PSE&G approximately 70 billion cubic feet or 50% of its residential gas supply annual requirements. For additional information, see Note 18. Related-Party Transactions. | |||||||||||||||
Minimum Fuel Purchase Requirements | |||||||||||||||
Power has various long-term fuel purchase commitments for coal through 2017 to support its fossil generation stations and for supply of nuclear fuel for the Salem, Hope Creek and Peach Bottom nuclear generating stations and for firm transportation and storage capacity for natural gas. | |||||||||||||||
Power’s strategy is to maintain certain levels of uranium and to make periodic purchases to support such levels. As such, the commitments referred to in the following table may include estimated quantities to be purchased that deviate from contractual nominal quantities. Power’s nuclear fuel commitments cover approximately 100% of its estimated uranium, enrichment and fabrication requirements through 2015 and a portion through 2017 at Salem, Hope Creek and Peach Bottom. | |||||||||||||||
Power’s various multi-year contracts for firm transportation and storage capacity for natural gas are primarily used to meet its gas supply obligations to PSE&G. These purchase obligations are consistent with Power’s strategy to enter into contracts for its fuel supply in comparable volumes to its sales contracts. | |||||||||||||||
As of September 30, 2013, the total minimum purchase requirements included in these commitments were as follows: | |||||||||||||||
Fuel Type | Power’s Share of | ||||||||||||||
Commitments | |||||||||||||||
through 2017 | |||||||||||||||
Millions | |||||||||||||||
Nuclear Fuel | |||||||||||||||
Uranium | $ | 470 | |||||||||||||
Enrichment | $ | 386 | |||||||||||||
Fabrication | $ | 146 | |||||||||||||
Natural Gas | $ | 880 | |||||||||||||
Coal | $ | 446 | |||||||||||||
Regulatory Proceedings | |||||||||||||||
New Jersey Clean Energy Program | |||||||||||||||
In June 2013, the BPU established the funding level for fiscal 2014 applicable to its Renewable Energy and Energy Efficiency programs. The fiscal year 2014 aggregate funding for all EDCs is $345 million with PSE&G's share of the funding at $200 million. PSE&G has a remaining current liability of $185 million as of September 30, 2013 for its outstanding share of the fiscal 2014 and remaining fiscal 2013 funding. The liability is reduced as normal payments are made. The liability has been recorded with an offsetting Regulatory Asset, since the costs associated with this program are recovered from PSE&G ratepayers through the Societal Benefits Charge (SBC). | |||||||||||||||
Long-Term Capacity Agreement Pilot Program (LCAPP) | |||||||||||||||
In 2011, New Jersey enacted the LCAPP Act that resulted in the selection of three generators to build a total of approximately 2,000 MW of new combined-cycle generating facilities located in New Jersey. Each of the New Jersey EDCs, including PSE&G, was directed to execute a standard offer capacity agreement (SOCA) with the selected generators, but did so under protest preserving their legal rights. The SOCA provides for the EDCs to guarantee specified annual capacity payments to the generators subject to the terms and conditions of the agreement. In July 2013, the SOCA contract with New Jersey Power Development LLC, a subsidiary of NRG Energy, Inc., was terminated early as a result of a default by the generator. SOCA contracts are for a 15-year term, which are scheduled to commence for one of the generators in the 2015/2016 delivery year and for the other generator in the 2016/2017 delivery year. These contracts are for the aggregate notional amount of approximately 1,300 MWs of installed capacity. Based upon the expected percentage of state load that PSE&G will be serving during the term of these contracts, the contracts provide that PSE&G would be responsible for the positive difference of the contract price and the annual RPM clearing price for approximately 52% or 676 MW of this amount provided that these generators satisfy their obligations under the SOCA, including the requirement that the specific generation units set forth in the contract achieve commercial operation. | |||||||||||||||
The current estimated fair value of the SOCAs is recorded as a Derivative Asset or Liability with an offsetting Regulatory Asset or Liability on PSE&G’s Condensed Consolidated Balance Sheets. See Note 12. Fair Value Measurements for additional information. | |||||||||||||||
PSE&G has taken several steps to challenge these subsidies, including joining several parties in challenging the LCAPP Act on constitutional grounds in federal court. On October 11, 2013, the U.S. District Court issued a decision finding that the LCAPP Act violated the Supremacy Clause of the U.S. Constitution and declaring the LCAPP Act null and void. On October 25, 2013, a final judgment was issued implementing the federal court's decision in this proceeding and also finding the SOCA contracts void, invalid and unenforceable and denying the request of the defendants to stay the decision pending appeal. The defendants may appeal the decision and may seek a stay from the U.S. Third Circuit Court of Appeals. Additionally, PSE&G joined an appeal in New Jersey state court challenging the BPU’s implementation of the LCAPP Act. The New Jersey State Appellate Court dismissed that appeal, without prejudice, based on the fact that the federal court had found the LCAPP Act unconstitutional and void. | |||||||||||||||
Superstorm Sandy | |||||||||||||||
In late October 2012, Superstorm Sandy caused damage to PSE&G's transmission and distribution system throughout its service territory as well as to some of Power's generation infrastructure in the northern part of New Jersey. Strong winds and the resulting storm surge caused damage to switching stations, substations and generating infrastructure. Power's estimate of the total costs required to restore its damaged facilities to their pre-Superstorm Sandy condition is approximately $364 million. | |||||||||||||||
Power incurred an additional $17 million and $67 million of storm-related expense for the three months and nine months ended September 30, 2013, respectively, primarily for repairs at certain generating stations in Power's fossil fleet. Power had incurred $85 million of costs in 2012. These costs were recognized in Operation and Maintenance Expense, offset by $25 million and $19 million of insurance recoveries in the second quarter of 2013 and the fourth quarter of 2012, respectively. | |||||||||||||||
Leveraged Lease Investments | |||||||||||||||
In January 2012, PSEG entered into a specific matter closing agreement with the IRS settling all matters related to cross border lease transactions. This agreement settled the leasing dispute with finality for all tax periods in which PSEG realized tax deductions from these transactions. In January 2012, PSEG also signed a Form 870-AD settlement agreement covering all audit issues for tax years 1997 through 2003. In March 2012, PSEG executed a Form 870-AD settlement agreement covering all audit issues for tax years 2004 through 2006. These agreements concluded the audits for these years for PSEG and the leasing issue for all tax years. For PSEG, the impact of these agreements was an increase in financial statement Income Tax Expense of approximately $175 million in the first quarter of 2012. In prior periods, PSEG had established financial statement tax liabilities for uncertain tax positions in the amount of $246 million with respect to these tax years. Accordingly, the settlement resulted in a net $71 million decrease in the first quarter of 2012 in the Income Tax Expense of PSEG. | |||||||||||||||
Cash Impact | |||||||||||||||
For tax years 1997 through 2003, the tax and interest PSEG owes the IRS as a result of this settlement will be reduced by the $320 million PSEG has on deposit with the IRS for this matter. PSEG paid a net deficiency for these years of approximately $4 million during the second quarter of 2012. Based upon the closing agreement and the Form 870-AD for tax years 2004 through 2006, PSEG owes the IRS approximately $620 million in tax and interest. Based on the settlement of the leasing dispute, for tax years 2007 through 2010, the IRS owes PSEG approximately $676 million. PSEG has filed amended returns for tax years 2007-2010 reflecting the impact of the settlement. These returns have been audited by the IRS and accepted as filed. As required by statute, the IRS presented the refund claim to the Joint Committee on Taxation for approval. In October 2012, PSEG was notified that the Joint Committee took no exception to the refund claim. In April 2013, PSEG received confirmation from the IRS which shows that overpayments from the 2008 through 2010 tax years have been applied to satisfy the liabilities due with respect to tax years 2004 through 2007. Accordingly, no further cash payments will be required with respect to the contested leasing transactions. In addition to the above, PSEG claimed a tax deduction for the accrued deficiency interest associated with this settlement in 2012, which gives rise to a cash tax savings of approximately $100 million. |
Changes_in_Capitalization
Changes in Capitalization | 9 Months Ended | |
Sep. 30, 2013 | ||
Changes in Capitalization | Changes in Capitalization | |
The following capital transactions occurred in the nine months ended September 30, 2013: | ||
Power | ||
• | paid cash dividends of $690 million to PSEG, and | |
• | paid $300 million of 2.50% Senior Notes at maturity. | |
PSE&G | ||
• | issued $350 million of 2.30% Secured Medium-Term Notes, Series I due September 2018, | |
• | issued $250 million of 3.75% Secured Medium-Term Notes, Series I due March 2024, | |
• | paid $300 million of 5.375% Secured Medium-Term Notes at maturity, | |
• | issued $500 million of 2.375% Secured Medium-Term Notes, Series I due May 2023, | |
• | paid $150 million of 5.00% Secured Medium-Term Notes at maturity, | |
• | issued $400 million of 3.80% Secured Medium-Term Notes, Series H due January 2043, | |
• | received a $100 million capital contribution from PSEG, | |
• | paid $156 million of Transition Funding's securitization debt, and | |
• | paid $6 million of Transition Funding II's securitization debt. | |
Power [Member] | ||
Changes in Capitalization | Changes in Capitalization | |
The following capital transactions occurred in the nine months ended September 30, 2013: | ||
Power | ||
• | paid cash dividends of $690 million to PSEG, and | |
• | paid $300 million of 2.50% Senior Notes at maturity. | |
PSE&G | ||
• | issued $350 million of 2.30% Secured Medium-Term Notes, Series I due September 2018, | |
• | issued $250 million of 3.75% Secured Medium-Term Notes, Series I due March 2024, | |
• | paid $300 million of 5.375% Secured Medium-Term Notes at maturity, | |
• | issued $500 million of 2.375% Secured Medium-Term Notes, Series I due May 2023, | |
• | paid $150 million of 5.00% Secured Medium-Term Notes at maturity, | |
• | issued $400 million of 3.80% Secured Medium-Term Notes, Series H due January 2043, | |
• | received a $100 million capital contribution from PSEG, | |
• | paid $156 million of Transition Funding's securitization debt, and | |
• | paid $6 million of Transition Funding II's securitization debt. | |
PSE And G [Member] | ||
Changes in Capitalization | Changes in Capitalization | |
The following capital transactions occurred in the nine months ended September 30, 2013: | ||
Power | ||
• | paid cash dividends of $690 million to PSEG, and | |
• | paid $300 million of 2.50% Senior Notes at maturity. | |
PSE&G | ||
• | issued $350 million of 2.30% Secured Medium-Term Notes, Series I due September 2018, | |
• | issued $250 million of 3.75% Secured Medium-Term Notes, Series I due March 2024, | |
• | paid $300 million of 5.375% Secured Medium-Term Notes at maturity, | |
• | issued $500 million of 2.375% Secured Medium-Term Notes, Series I due May 2023, | |
• | paid $150 million of 5.00% Secured Medium-Term Notes at maturity, | |
• | issued $400 million of 3.80% Secured Medium-Term Notes, Series H due January 2043, | |
• | received a $100 million capital contribution from PSEG, | |
• | paid $156 million of Transition Funding's securitization debt, and | |
• | paid $6 million of Transition Funding II's securitization debt. |
Financial_Risk_Management_Acti
Financial Risk Management Activities | 9 Months Ended | |||||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||||
Financial Risk Management Activities | Financial Risk Management Activities | |||||||||||||||||||||||||||||
The operations of PSEG, Power and PSE&G are exposed to market risks from changes in commodity prices, interest rates and equity prices that could affect their results of operations and financial condition. Exposure to these risks is managed through normal operating and financing activities and, when appropriate, through hedging transactions. | ||||||||||||||||||||||||||||||
Hedging transactions use derivative instruments to create a relationship in which changes to the value of the assets, liabilities or anticipated transactions exposed to market risks are expected to be offset by changes in the value of these derivative instruments. | ||||||||||||||||||||||||||||||
Commodity Prices | ||||||||||||||||||||||||||||||
The availability and price of energy commodities are subject to fluctuations due to weather, environmental policies, changes in supply and demand, state and federal regulatory policies, market conditions, transmission availability and other events. Power uses physical and financial transactions in the wholesale energy markets to mitigate the effects of adverse movements in fuel and electricity prices. Derivative contracts that do not qualify for hedge accounting or normal purchases/normal sales treatment are marked to market (MTM) with changes in fair value recorded in the income statement. The fair value for the majority of these contracts is obtained from quoted market sources. Modeling techniques using assumptions reflective of current market rates, yield curves and forward prices are used to interpolate certain prices when no quoted market exists. | ||||||||||||||||||||||||||||||
Cash Flow Hedges | ||||||||||||||||||||||||||||||
Power uses forward sale and purchase contracts, swaps and futures contracts to hedge | ||||||||||||||||||||||||||||||
• | forecasted energy sales from its generation stations and the related load obligations, and | |||||||||||||||||||||||||||||
• | certain forecasted natural gas sales and purchases made to support the BGSS contract with PSE&G. | |||||||||||||||||||||||||||||
Certain of these derivative transactions are designated and effective as cash flow hedges. During the second quarter of 2012, Power de-designated certain of its commodity derivative transactions that had previously qualified as cash flow hedges as they were deemed to no longer be highly effective as required by the relevant accounting guidance. As a result, subsequent to June 1, 2012, Power recognizes all gains and losses from changes in the fair value of these derivatives immediately in earnings rather than deferring any such amounts in Accumulated Other Comprehensive Income (Loss). The fair values of Power’s de-designated hedges were frozen in Accumulated Other Comprehensive Income (Loss) as the original forecasted transactions are still expected to occur and are reclassified into earnings as the original derivative transactions settle. | ||||||||||||||||||||||||||||||
As of September 30, 2013 and December 31, 2012, the fair value and the impact on Accumulated Other Comprehensive Income (Loss) associated with accounting hedge activity were as follows: | ||||||||||||||||||||||||||||||
As of | As of | |||||||||||||||||||||||||||||
September 30, | December 31, | |||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||
Millions | ||||||||||||||||||||||||||||||
Fair Value of Cash Flow Hedges | $ | 1 | $ | 3 | ||||||||||||||||||||||||||
Impact on Accumulated Other Comprehensive Income (Loss) (after tax) | $ | 3 | $ | 9 | ||||||||||||||||||||||||||
The expiration date of the longest-dated cash flow hedge at Power is in 2014. Power’s remaining $3 million of after-tax unrealized gains on these derivatives is expected to be reclassified to earnings during the next 12 months. There was no ineffectiveness associated with qualifying hedges as of September 30, 2013. | ||||||||||||||||||||||||||||||
Trading Derivatives | ||||||||||||||||||||||||||||||
The primary purpose of Power’s wholesale marketing operation is to optimize the value of the output of the generating facilities via various products and services available in the markets it serves. Historically, Power engaged in trading of electricity and energy-related products where such transactions were not associated with the output or fuel purchase requirements of its facilities. This trading consisted mostly of energy supply contracts where Power secured sales commitments with the intent to supply the energy services from purchases in the market rather than from its owned generation. Such trading activities were marked to market through the income statement and represented less than one percent of gross margin (revenues less energy costs) on an annual basis. Effective July 2011, Power discontinued trading activities and anticipates that it will not enter into any more trading derivative contracts. | ||||||||||||||||||||||||||||||
Other Derivatives | ||||||||||||||||||||||||||||||
Power enters into additional contracts that are derivatives, but do not qualify for or are not designated as cash flow hedges. These transactions are intended to mitigate exposure to fluctuations in commodity prices and optimize the value of its expected generation. Trade types include financial options, futures, swaps, fuel purchases and forward purchases and sales of electricity. Changes in the fair market value of these contracts are recorded in earnings. PSE&G is a party to certain long-term natural gas sales contracts to optimize its pipeline capacity utilization. In addition, as further described in Note 9. Commitments and Contingent Liabilities, PSE&G was directed to execute long-term SOCAs with certain generators to support the LCAPP Act. These contracts qualify as derivatives and are marked to fair value with the offset recorded to Regulatory Assets and Liabilities. | ||||||||||||||||||||||||||||||
Interest Rates | ||||||||||||||||||||||||||||||
PSEG, Power and PSE&G are subject to the risk of fluctuating interest rates in the normal course of business. Exposure to this risk is managed by targeting a balanced debt maturity profile which limits refinancing in any given period or interest rate environment. In addition, they have used a mix of fixed and floating rate debt, interest rate swaps and interest rate lock agreements. | ||||||||||||||||||||||||||||||
Fair Value Hedges | ||||||||||||||||||||||||||||||
PSEG enters into fair value hedges to convert fixed-rate debt into variable-rate debt. As of September 30, 2013, PSEG had seven interest rate swaps outstanding totaling $850 million. These swaps convert Power’s $300 million of 5.5% Senior Notes due December 2015, $300 million of Power’s $303 million of 5.32% Senior Notes due September 2016 and Power’s $250 million of 2.75% Senior Notes due September 2016 into variable-rate debt. These interest rate swaps are designated and effective as fair value hedges. The fair value changes of the interest rate swaps are fully offset by the changes in the fair value of the underlying forecasted interest payments of the debt. As of September 30, 2013 and December 31, 2012, the fair value of all the underlying hedges was $42 million and $57 million, respectively. | ||||||||||||||||||||||||||||||
Cash Flow Hedges | ||||||||||||||||||||||||||||||
PSEG uses interest rate swaps and other derivatives, which are designated and effective as cash flow hedges, to manage its exposure to the variability of cash flows, primarily related to variable-rate debt instruments. The Accumulated Other Comprehensive Income (Loss) (after tax) related to interest rate derivatives designated as cash flow hedges was $(1) million and $(2) million as of September 30, 2013 and December 31, 2012, respectively. | ||||||||||||||||||||||||||||||
Fair Values of Derivative Instruments | ||||||||||||||||||||||||||||||
The following are the fair values of derivative instruments on the Condensed Consolidated Balance Sheets. The following tables also include disclosures for offsetting derivative assets and liabilities which are subject to a master netting or similar agreement. See Note 2. Recent Accounting Standards. In general, the terms of the agreements provide that in the event of an early termination the counterparties have the right to offset amounts owed or owing under that and any other agreement with the same counterparty. Accordingly, and in accordance with our accounting policy, these positions have been offset in the Condensed Consolidated Balance Sheets of Power, PSE&G and PSEG. The following tabular disclosure does not include the offsetting of trade receivables and payables. | ||||||||||||||||||||||||||||||
As of September 30, 2013 | ||||||||||||||||||||||||||||||
Power (A) | PSE&G(A) | PSEG (A) | Consolidated | |||||||||||||||||||||||||||
Cash Flow | Non | Non | Fair Value | |||||||||||||||||||||||||||
Hedges | Hedges | Hedges | Hedges | |||||||||||||||||||||||||||
Balance Sheet Location | Energy- | Energy- | Netting | Total | Energy- | Interest | Total | |||||||||||||||||||||||
Related | Related | (B) | Power | Related | Rate | Derivatives | ||||||||||||||||||||||||
Contracts | Contracts | Contracts | Swaps | |||||||||||||||||||||||||||
Millions | ||||||||||||||||||||||||||||||
Derivative Contracts | ||||||||||||||||||||||||||||||
Current Assets | $ | 1 | $ | 228 | $ | (157 | ) | $ | 72 | $ | 19 | $ | 16 | $ | 107 | |||||||||||||||
Noncurrent Assets | — | 164 | (75 | ) | 89 | 69 | 26 | 184 | ||||||||||||||||||||||
Total Mark-to-Market Derivative Assets | $ | 1 | $ | 392 | $ | (232 | ) | $ | 161 | $ | 88 | $ | 42 | $ | 291 | |||||||||||||||
Derivative Contracts | ||||||||||||||||||||||||||||||
Current Liabilities | $ | — | $ | (193 | ) | $ | 157 | $ | (36 | ) | $ | — | $ | — | $ | (36 | ) | |||||||||||||
Noncurrent Liabilities | — | (96 | ) | 73 | (23 | ) | (140 | ) | — | (163 | ) | |||||||||||||||||||
Total Mark-to-Market Derivative (Liabilities) | $ | — | $ | (289 | ) | $ | 230 | $ | (59 | ) | $ | (140 | ) | $ | — | $ | (199 | ) | ||||||||||||
Total Net Mark-to-Market Derivative Assets (Liabilities) | $ | 1 | $ | 103 | $ | (2 | ) | $ | 102 | $ | (52 | ) | $ | 42 | $ | 92 | ||||||||||||||
As of December 31, 2012 | ||||||||||||||||||||||||||||||
Power (A) | PSE&G (A) | PSEG (A) | Consolidated | |||||||||||||||||||||||||||
Cash Flow | Non | Non | Fair Value | |||||||||||||||||||||||||||
Hedges | Hedges | Hedges | Hedges | |||||||||||||||||||||||||||
Balance Sheet Location | Energy- | Energy- | Netting | Total | Energy- | Interest | Total | |||||||||||||||||||||||
Related | Related | (B) | Power | Related | Rate | Derivatives | ||||||||||||||||||||||||
Contracts | Contracts | Contracts | Swaps | |||||||||||||||||||||||||||
Millions | ||||||||||||||||||||||||||||||
Derivative Contracts | ||||||||||||||||||||||||||||||
Current Assets | $ | 3 | $ | 332 | $ | (217 | ) | $ | 118 | $ | 5 | $ | 15 | $ | 138 | |||||||||||||||
Noncurrent Assets | — | 75 | (26 | ) | 49 | 62 | 42 | 153 | ||||||||||||||||||||||
Total Mark-to-Market Derivative Assets | $ | 3 | $ | 407 | $ | (243 | ) | $ | 167 | $ | 67 | $ | 57 | $ | 291 | |||||||||||||||
Derivative Contracts | ||||||||||||||||||||||||||||||
Current Liabilities | $ | — | $ | (265 | ) | $ | 219 | $ | (46 | ) | $ | — | $ | — | $ | (46 | ) | |||||||||||||
Noncurrent Liabilities | — | (41 | ) | 26 | (15 | ) | (107 | ) | — | (122 | ) | |||||||||||||||||||
Total Mark-to-Market Derivative (Liabilities) | $ | — | $ | (306 | ) | $ | 245 | $ | (61 | ) | $ | (107 | ) | $ | — | $ | (168 | ) | ||||||||||||
Total Net Mark-to-Market Derivative Assets (Liabilities) | $ | 3 | $ | 101 | $ | 2 | $ | 106 | $ | (40 | ) | $ | 57 | $ | 123 | |||||||||||||||
(A) | Substantially all of Power's and PSEG's derivative instruments are contracts subject to master netting agreements. Contracts not subject to master netting or similar agreements are immaterial and did not have any collateral posted or received as of September 30, 2013 and December 31, 2012. 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 in the statement of financial position. As of September 30, 2013 and December 31, 2012, net cash collateral (received) paid of $(2) million and $2 million, respectively, were netted against the corresponding net derivative contract positions. Of the $(2) million as of September 30, 2013, $(1) million of cash collateral was netted against current assets, $(2) million was netted against noncurrent assets and $1 million was netted against current liabilities. Of the $2 million as of December 31, 2012, cash collateral of $(3) million and $5 million were netted against current assets and current liabilities, respectively. | |||||||||||||||||||||||||||||
Certain of Power’s derivative instruments contain provisions that require Power to post collateral. This collateral may be posted in the form of cash or credit support with thresholds contingent upon Power’s credit rating from each of the major credit rating agencies. The collateral and credit support requirements vary by contract and by counterparty. These credit risk-related contingent features stipulate that if Power were to be downgraded or lose its investment grade credit rating, it would be required to provide additional collateral. This incremental collateral requirement can offset collateral requirements related to other derivative instruments that are assets with the same counterparty, where the contractual right of offset exists under applicable master agreements. Power also enters into commodity transactions on the New York Mercantile Exchange (NYMEX) and Intercontinental Exchange (ICE). The NYMEX and ICE clearing houses act as counterparties to each trade. Transactions on NYMEX and ICE must adhere to comprehensive collateral and margin requirements. | ||||||||||||||||||||||||||||||
The aggregate fair value of all derivative instruments with credit risk-related contingent features in a liability position that are not fully collateralized (excluding transactions on NYMEX and ICE that are fully collateralized) was $75 million and $98 million as of September 30, 2013 and December 31, 2012, respectively. As of September 30, 2013 and December 31, 2012, Power had the contractual right of offset of $42 million and $61 million, respectively, related to derivative instruments that are assets with the same counterparty under agreements and net of margin posted. If Power had been downgraded or lost its investment grade rating, it would have had additional collateral obligations of $33 million and $37 million as of September 30, 2013 and December 31, 2012, respectively, related to its derivatives, net of the contractual right of offset under master agreements and the application of collateral. This potential additional collateral is included in the $588 million and $654 million as of September 30, 2013 and December 31, 2012, respectively, discussed in Note 9. Commitments and Contingent Liabilities. | ||||||||||||||||||||||||||||||
The following shows the effect on the Condensed Consolidated Statements of Operations and on Accumulated Other Comprehensive Income (AOCI) of derivative instruments designated as cash flow hedges for the three months ended September 30, 2013 and 2012: | ||||||||||||||||||||||||||||||
Derivatives in | Amount of | Location | Amount of | Location of | Amount of | |||||||||||||||||||||||||
Cash Flow Hedging | Pre-Tax | of Pre-Tax Gain | Pre-Tax | Pre-Tax Gain | Pre-Tax | |||||||||||||||||||||||||
Relationships | Gain (Loss) | (Loss) Reclassified | Gain (Loss) | (Loss) Recognized in | Gain (Loss) | |||||||||||||||||||||||||
Recognized in | from AOCI into | Reclassified | Income on | Recognized in | ||||||||||||||||||||||||||
AOCI on | Income | from AOCI | Derivatives | Income on | ||||||||||||||||||||||||||
Derivatives | into Income | (Ineffective Portion) | Derivatives | |||||||||||||||||||||||||||
(Effective | (Effective | (Ineffective | ||||||||||||||||||||||||||||
Portion) | Portion) | Portion) | ||||||||||||||||||||||||||||
Three Months Ended | Three Months Ended | Three Months Ended | ||||||||||||||||||||||||||||
September 30, | September 30, | September 30, | ||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||
Millions | ||||||||||||||||||||||||||||||
PSEG | ||||||||||||||||||||||||||||||
Energy-Related Contracts | $ | 1 | $ | (3 | ) | Operating Revenues | $ | 3 | $ | 15 | Operating Revenues | $ | (1 | ) | $ | (1 | ) | |||||||||||||
Total PSEG | $ | 1 | $ | (3 | ) | $ | 3 | $ | 15 | $ | (1 | ) | $ | (1 | ) | |||||||||||||||
Power | ||||||||||||||||||||||||||||||
Energy-Related Contracts | $ | 1 | $ | (3 | ) | Operating Revenues | $ | 3 | $ | 15 | Operating Revenues | $ | (1 | ) | $ | (1 | ) | |||||||||||||
Total Power | $ | 1 | $ | (3 | ) | $ | 3 | $ | 15 | $ | (1 | ) | $ | (1 | ) | |||||||||||||||
The following shows the effect on the Condensed Consolidated Statements of Operations and on AOCI of derivative instruments designated as cash flow hedges for the nine months ended September 30, 2013 and 2012: | ||||||||||||||||||||||||||||||
Derivatives in | Amount of | Location | Amount of | Location of | Amount of | |||||||||||||||||||||||||
Cash Flow Hedging | Pre-Tax | of Pre-Tax Gain | Pre-Tax | Pre-Tax Gain | Pre-Tax | |||||||||||||||||||||||||
Relationships | Gain (Loss) | (Loss) Reclassified | Gain (Loss) | (Loss) Recognized in | Gain (Loss) | |||||||||||||||||||||||||
Recognized in | from AOCI into | Reclassified | Income on | Recognized in | ||||||||||||||||||||||||||
AOCI on | Income | from AOCI | Derivatives | Income on | ||||||||||||||||||||||||||
Derivatives | into Income | (Ineffective Portion) | Derivatives | |||||||||||||||||||||||||||
(Effective | (Effective | (Ineffective | ||||||||||||||||||||||||||||
Portion) | Portion) | Portion) | ||||||||||||||||||||||||||||
Nine Months Ended | Nine Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||
September 30, | September 30, | September 30, | ||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||
Millions | ||||||||||||||||||||||||||||||
PSEG (A) | ||||||||||||||||||||||||||||||
Energy-Related Contracts | $ | 1 | $ | 27 | Operating Revenues | $ | 11 | $ | 67 | Operating Revenues | $ | (1 | ) | $ | (1 | ) | ||||||||||||||
Energy-Related Contracts | — | (4 | ) | Energy Costs | — | (9 | ) | — | — | |||||||||||||||||||||
Interest Rate Swaps | — | — | Interest Expense | (1 | ) | (1 | ) | — | — | |||||||||||||||||||||
Total PSEG | $ | 1 | $ | 23 | $ | 10 | $ | 57 | $ | (1 | ) | $ | (1 | ) | ||||||||||||||||
Power | ||||||||||||||||||||||||||||||
Energy-Related Contracts | $ | 1 | $ | 27 | Operating Revenues | $ | 11 | $ | 67 | Operating Revenues | $ | (1 | ) | $ | (1 | ) | ||||||||||||||
Energy-Related Contracts | — | (4 | ) | Energy Costs | — | (9 | ) | — | — | |||||||||||||||||||||
Total Power | $ | 1 | $ | 23 | $ | 11 | $ | 58 | $ | (1 | ) | $ | (1 | ) | ||||||||||||||||
(A) Includes amounts for PSEG parent. | ||||||||||||||||||||||||||||||
The following reconciles the Accumulated Other Comprehensive Income for derivative activity included in the Accumulated Other Comprehensive Loss of PSEG on a pre-tax and after-tax basis: | ||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income | Pre-Tax | After-Tax | ||||||||||||||||||||||||||||
Millions | ||||||||||||||||||||||||||||||
Balance as of December 31, 2012 | $ | 12 | $ | 7 | ||||||||||||||||||||||||||
Less: Gain Reclassified into Income | (7 | ) | (4 | ) | ||||||||||||||||||||||||||
Balance as of June 30, 2013 | $ | 5 | $ | 3 | ||||||||||||||||||||||||||
Gain Recognized in AOCI | $ | 1 | 1 | |||||||||||||||||||||||||||
Less: Gain Reclassified into Income | (3 | ) | (2 | ) | ||||||||||||||||||||||||||
Balance as of September 30, 2013 | $ | 3 | $ | 2 | ||||||||||||||||||||||||||
The following shows the effect on the Condensed Consolidated Statements of Operations of derivative instruments not designated as hedging instruments or as normal purchases and sales for the three months and nine months ended September 30, 2013 and 2012: | ||||||||||||||||||||||||||||||
Derivatives Not Designated as Hedges | Location of Pre-Tax | Pre-Tax Gain (Loss) | ||||||||||||||||||||||||||||
Gain (Loss) | Recognized in Income | |||||||||||||||||||||||||||||
Recognized in Income | on Derivatives | |||||||||||||||||||||||||||||
on Derivatives | ||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||
Millions | ||||||||||||||||||||||||||||||
PSEG and Power | ||||||||||||||||||||||||||||||
Energy-Related Contracts | Operating Revenues | $ | 14 | $ | (90 | ) | $ | (32 | ) | $ | 145 | |||||||||||||||||||
Energy-Related Contracts | Energy Costs | 10 | 6 | 63 | (17 | ) | ||||||||||||||||||||||||
Total PSEG and Power | $ | 24 | $ | (84 | ) | $ | 31 | $ | 128 | |||||||||||||||||||||
Power’s derivative contracts reflected in the preceding tables include contracts to hedge the purchase and sale of electricity and natural gas and the purchase of fuel. Not all of these contracts qualify for hedge accounting. Most of these contracts are marked to market. The tables above do not include contracts for which Power has elected the normal purchase/normal sales exemption, such as its BGS contracts and certain other energy supply contracts that it has with other utilities and companies with retail load. In addition, PSEG has interest rate swaps designated as fair value hedges. The effect of these hedges was to reduce interest expense by $4 million and $6 million for the three month periods and $14 million and $17 million for the nine month periods ended September 30, 2013 and 2012, respectively. | ||||||||||||||||||||||||||||||
The following reflects the gross volume, on an absolute value basis, of derivatives as of September 30, 2013 and December 31, 2012: | ||||||||||||||||||||||||||||||
Type | Notional | Total | PSEG | Power | PSE&G | |||||||||||||||||||||||||
Millions | ||||||||||||||||||||||||||||||
As of September 30, 2013 | ||||||||||||||||||||||||||||||
Natural Gas | Dth | 537 | — | 377 | 160 | |||||||||||||||||||||||||
Electricity | MWh | 247 | — | 247 | — | |||||||||||||||||||||||||
Capacity | MW days | 4 | — | — | 4 | |||||||||||||||||||||||||
FTRs | MWh | 22 | — | 22 | — | |||||||||||||||||||||||||
Interest Rate Swaps | U.S. Dollars | 850 | 850 | — | — | |||||||||||||||||||||||||
As of December 31, 2012 | ||||||||||||||||||||||||||||||
Natural Gas | Dth | 596 | — | 404 | 192 | |||||||||||||||||||||||||
Electricity | MWh | 208 | — | 208 | — | |||||||||||||||||||||||||
Capacity | MW days | 4 | — | — | 4 | |||||||||||||||||||||||||
FTRs | MWh | 19 | — | 19 | — | |||||||||||||||||||||||||
Interest Rate Swaps | U.S. Dollars | 850 | 850 | — | — | |||||||||||||||||||||||||
Coal | Tons | 1 | — | 1 | — | |||||||||||||||||||||||||
Credit Risk | ||||||||||||||||||||||||||||||
Credit risk relates to the risk of loss that we would incur as a result of non-performance by counterparties pursuant to the terms of their contractual obligations. We have established credit policies that we believe significantly minimize credit risk. These policies include an evaluation of potential counterparties’ financial condition (including credit rating), collateral requirements under certain circumstances and the use of standardized agreements, which allow for the netting of positive and negative exposures associated with a single counterparty. In the event of non-performance or non-payment by a major counterparty, there may be a material adverse impact on Power’s and PSEG’s financial condition, results of operations or net cash flows. | ||||||||||||||||||||||||||||||
As of September 30, 2013, 95% of the credit exposure for Power’s operations was with investment grade counterparties. Credit exposure is defined as any positive results of netting accounts receivable/accounts payable and the forward value of open positions (which includes all financial instruments including derivatives and non-derivatives and normal purchases/normal sales). | ||||||||||||||||||||||||||||||
The following table provides information on Power’s credit risk from others, net of cash collateral, as of September 30, 2013. It further delineates that exposure by the credit rating of the counterparties and provides guidance on the concentration of credit risk to individual counterparties and an indication of the quality of Power’s credit risk by credit rating of the counterparties. | ||||||||||||||||||||||||||||||
Rating | Current | Securities | Net | Number of | Net Exposure of | |||||||||||||||||||||||||
Exposure | Held as | Exposure | Counterparties | Counterparties | ||||||||||||||||||||||||||
Collateral | >10% | >10% | ||||||||||||||||||||||||||||
Millions | Millions | |||||||||||||||||||||||||||||
Investment Grade—External Rating | $ | 180 | $ | 17 | $ | 180 | 1 | $ | 90 | (A) | ||||||||||||||||||||
Non-Investment Grade—External Rating | 2 | — | 2 | — | — | |||||||||||||||||||||||||
Investment Grade—No External Rating | 7 | — | 7 | — | — | |||||||||||||||||||||||||
Non-Investment Grade—No External Rating | 8 | — | 8 | — | — | |||||||||||||||||||||||||
Total | $ | 197 | $ | 17 | $ | 197 | 1 | $ | 90 | |||||||||||||||||||||
(A) | Represents net exposure with PSE&G. | |||||||||||||||||||||||||||||
The net exposure listed above, in some cases, will not be the difference between the current exposure and the collateral held. A counterparty may have posted more cash collateral than the outstanding exposure, in which case there would be no exposure. When letters of credit have been posted as collateral, the exposure amount is not reduced, but the exposure amount is transferred to the rating of the issuing bank. As of September 30, 2013, Power had 142 active counterparties. | ||||||||||||||||||||||||||||||
Power [Member] | ||||||||||||||||||||||||||||||
Financial Risk Management Activities | Financial Risk Management Activities | |||||||||||||||||||||||||||||
The operations of PSEG, Power and PSE&G are exposed to market risks from changes in commodity prices, interest rates and equity prices that could affect their results of operations and financial condition. Exposure to these risks is managed through normal operating and financing activities and, when appropriate, through hedging transactions. | ||||||||||||||||||||||||||||||
Hedging transactions use derivative instruments to create a relationship in which changes to the value of the assets, liabilities or anticipated transactions exposed to market risks are expected to be offset by changes in the value of these derivative instruments. | ||||||||||||||||||||||||||||||
Commodity Prices | ||||||||||||||||||||||||||||||
The availability and price of energy commodities are subject to fluctuations due to weather, environmental policies, changes in supply and demand, state and federal regulatory policies, market conditions, transmission availability and other events. Power uses physical and financial transactions in the wholesale energy markets to mitigate the effects of adverse movements in fuel and electricity prices. Derivative contracts that do not qualify for hedge accounting or normal purchases/normal sales treatment are marked to market (MTM) with changes in fair value recorded in the income statement. The fair value for the majority of these contracts is obtained from quoted market sources. Modeling techniques using assumptions reflective of current market rates, yield curves and forward prices are used to interpolate certain prices when no quoted market exists. | ||||||||||||||||||||||||||||||
Cash Flow Hedges | ||||||||||||||||||||||||||||||
Power uses forward sale and purchase contracts, swaps and futures contracts to hedge | ||||||||||||||||||||||||||||||
• | forecasted energy sales from its generation stations and the related load obligations, and | |||||||||||||||||||||||||||||
• | certain forecasted natural gas sales and purchases made to support the BGSS contract with PSE&G. | |||||||||||||||||||||||||||||
Certain of these derivative transactions are designated and effective as cash flow hedges. During the second quarter of 2012, Power de-designated certain of its commodity derivative transactions that had previously qualified as cash flow hedges as they were deemed to no longer be highly effective as required by the relevant accounting guidance. As a result, subsequent to June 1, 2012, Power recognizes all gains and losses from changes in the fair value of these derivatives immediately in earnings rather than deferring any such amounts in Accumulated Other Comprehensive Income (Loss). The fair values of Power’s de-designated hedges were frozen in Accumulated Other Comprehensive Income (Loss) as the original forecasted transactions are still expected to occur and are reclassified into earnings as the original derivative transactions settle. | ||||||||||||||||||||||||||||||
As of September 30, 2013 and December 31, 2012, the fair value and the impact on Accumulated Other Comprehensive Income (Loss) associated with accounting hedge activity were as follows: | ||||||||||||||||||||||||||||||
As of | As of | |||||||||||||||||||||||||||||
September 30, | December 31, | |||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||
Millions | ||||||||||||||||||||||||||||||
Fair Value of Cash Flow Hedges | $ | 1 | $ | 3 | ||||||||||||||||||||||||||
Impact on Accumulated Other Comprehensive Income (Loss) (after tax) | $ | 3 | $ | 9 | ||||||||||||||||||||||||||
The expiration date of the longest-dated cash flow hedge at Power is in 2014. Power’s remaining $3 million of after-tax unrealized gains on these derivatives is expected to be reclassified to earnings during the next 12 months. There was no ineffectiveness associated with qualifying hedges as of September 30, 2013. | ||||||||||||||||||||||||||||||
Trading Derivatives | ||||||||||||||||||||||||||||||
The primary purpose of Power’s wholesale marketing operation is to optimize the value of the output of the generating facilities via various products and services available in the markets it serves. Historically, Power engaged in trading of electricity and energy-related products where such transactions were not associated with the output or fuel purchase requirements of its facilities. This trading consisted mostly of energy supply contracts where Power secured sales commitments with the intent to supply the energy services from purchases in the market rather than from its owned generation. Such trading activities were marked to market through the income statement and represented less than one percent of gross margin (revenues less energy costs) on an annual basis. Effective July 2011, Power discontinued trading activities and anticipates that it will not enter into any more trading derivative contracts. | ||||||||||||||||||||||||||||||
Other Derivatives | ||||||||||||||||||||||||||||||
Power enters into additional contracts that are derivatives, but do not qualify for or are not designated as cash flow hedges. These transactions are intended to mitigate exposure to fluctuations in commodity prices and optimize the value of its expected generation. Trade types include financial options, futures, swaps, fuel purchases and forward purchases and sales of electricity. Changes in the fair market value of these contracts are recorded in earnings. PSE&G is a party to certain long-term natural gas sales contracts to optimize its pipeline capacity utilization. In addition, as further described in Note 9. Commitments and Contingent Liabilities, PSE&G was directed to execute long-term SOCAs with certain generators to support the LCAPP Act. These contracts qualify as derivatives and are marked to fair value with the offset recorded to Regulatory Assets and Liabilities. | ||||||||||||||||||||||||||||||
Interest Rates | ||||||||||||||||||||||||||||||
PSEG, Power and PSE&G are subject to the risk of fluctuating interest rates in the normal course of business. Exposure to this risk is managed by targeting a balanced debt maturity profile which limits refinancing in any given period or interest rate environment. In addition, they have used a mix of fixed and floating rate debt, interest rate swaps and interest rate lock agreements. | ||||||||||||||||||||||||||||||
Fair Value Hedges | ||||||||||||||||||||||||||||||
PSEG enters into fair value hedges to convert fixed-rate debt into variable-rate debt. As of September 30, 2013, PSEG had seven interest rate swaps outstanding totaling $850 million. These swaps convert Power’s $300 million of 5.5% Senior Notes due December 2015, $300 million of Power’s $303 million of 5.32% Senior Notes due September 2016 and Power’s $250 million of 2.75% Senior Notes due September 2016 into variable-rate debt. These interest rate swaps are designated and effective as fair value hedges. The fair value changes of the interest rate swaps are fully offset by the changes in the fair value of the underlying forecasted interest payments of the debt. As of September 30, 2013 and December 31, 2012, the fair value of all the underlying hedges was $42 million and $57 million, respectively. | ||||||||||||||||||||||||||||||
Cash Flow Hedges | ||||||||||||||||||||||||||||||
PSEG uses interest rate swaps and other derivatives, which are designated and effective as cash flow hedges, to manage its exposure to the variability of cash flows, primarily related to variable-rate debt instruments. The Accumulated Other Comprehensive Income (Loss) (after tax) related to interest rate derivatives designated as cash flow hedges was $(1) million and $(2) million as of September 30, 2013 and December 31, 2012, respectively. | ||||||||||||||||||||||||||||||
Fair Values of Derivative Instruments | ||||||||||||||||||||||||||||||
The following are the fair values of derivative instruments on the Condensed Consolidated Balance Sheets. The following tables also include disclosures for offsetting derivative assets and liabilities which are subject to a master netting or similar agreement. See Note 2. Recent Accounting Standards. In general, the terms of the agreements provide that in the event of an early termination the counterparties have the right to offset amounts owed or owing under that and any other agreement with the same counterparty. Accordingly, and in accordance with our accounting policy, these positions have been offset in the Condensed Consolidated Balance Sheets of Power, PSE&G and PSEG. The following tabular disclosure does not include the offsetting of trade receivables and payables. | ||||||||||||||||||||||||||||||
As of September 30, 2013 | ||||||||||||||||||||||||||||||
Power (A) | PSE&G(A) | PSEG (A) | Consolidated | |||||||||||||||||||||||||||
Cash Flow | Non | Non | Fair Value | |||||||||||||||||||||||||||
Hedges | Hedges | Hedges | Hedges | |||||||||||||||||||||||||||
Balance Sheet Location | Energy- | Energy- | Netting | Total | Energy- | Interest | Total | |||||||||||||||||||||||
Related | Related | (B) | Power | Related | Rate | Derivatives | ||||||||||||||||||||||||
Contracts | Contracts | Contracts | Swaps | |||||||||||||||||||||||||||
Millions | ||||||||||||||||||||||||||||||
Derivative Contracts | ||||||||||||||||||||||||||||||
Current Assets | $ | 1 | $ | 228 | $ | (157 | ) | $ | 72 | $ | 19 | $ | 16 | $ | 107 | |||||||||||||||
Noncurrent Assets | — | 164 | (75 | ) | 89 | 69 | 26 | 184 | ||||||||||||||||||||||
Total Mark-to-Market Derivative Assets | $ | 1 | $ | 392 | $ | (232 | ) | $ | 161 | $ | 88 | $ | 42 | $ | 291 | |||||||||||||||
Derivative Contracts | ||||||||||||||||||||||||||||||
Current Liabilities | $ | — | $ | (193 | ) | $ | 157 | $ | (36 | ) | $ | — | $ | — | $ | (36 | ) | |||||||||||||
Noncurrent Liabilities | — | (96 | ) | 73 | (23 | ) | (140 | ) | — | (163 | ) | |||||||||||||||||||
Total Mark-to-Market Derivative (Liabilities) | $ | — | $ | (289 | ) | $ | 230 | $ | (59 | ) | $ | (140 | ) | $ | — | $ | (199 | ) | ||||||||||||
Total Net Mark-to-Market Derivative Assets (Liabilities) | $ | 1 | $ | 103 | $ | (2 | ) | $ | 102 | $ | (52 | ) | $ | 42 | $ | 92 | ||||||||||||||
As of December 31, 2012 | ||||||||||||||||||||||||||||||
Power (A) | PSE&G (A) | PSEG (A) | Consolidated | |||||||||||||||||||||||||||
Cash Flow | Non | Non | Fair Value | |||||||||||||||||||||||||||
Hedges | Hedges | Hedges | Hedges | |||||||||||||||||||||||||||
Balance Sheet Location | Energy- | Energy- | Netting | Total | Energy- | Interest | Total | |||||||||||||||||||||||
Related | Related | (B) | Power | Related | Rate | Derivatives | ||||||||||||||||||||||||
Contracts | Contracts | Contracts | Swaps | |||||||||||||||||||||||||||
Millions | ||||||||||||||||||||||||||||||
Derivative Contracts | ||||||||||||||||||||||||||||||
Current Assets | $ | 3 | $ | 332 | $ | (217 | ) | $ | 118 | $ | 5 | $ | 15 | $ | 138 | |||||||||||||||
Noncurrent Assets | — | 75 | (26 | ) | 49 | 62 | 42 | 153 | ||||||||||||||||||||||
Total Mark-to-Market Derivative Assets | $ | 3 | $ | 407 | $ | (243 | ) | $ | 167 | $ | 67 | $ | 57 | $ | 291 | |||||||||||||||
Derivative Contracts | ||||||||||||||||||||||||||||||
Current Liabilities | $ | — | $ | (265 | ) | $ | 219 | $ | (46 | ) | $ | — | $ | — | $ | (46 | ) | |||||||||||||
Noncurrent Liabilities | — | (41 | ) | 26 | (15 | ) | (107 | ) | — | (122 | ) | |||||||||||||||||||
Total Mark-to-Market Derivative (Liabilities) | $ | — | $ | (306 | ) | $ | 245 | $ | (61 | ) | $ | (107 | ) | $ | — | $ | (168 | ) | ||||||||||||
Total Net Mark-to-Market Derivative Assets (Liabilities) | $ | 3 | $ | 101 | $ | 2 | $ | 106 | $ | (40 | ) | $ | 57 | $ | 123 | |||||||||||||||
(A) | Substantially all of Power's and PSEG's derivative instruments are contracts subject to master netting agreements. Contracts not subject to master netting or similar agreements are immaterial and did not have any collateral posted or received as of September 30, 2013 and December 31, 2012. 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 in the statement of financial position. As of September 30, 2013 and December 31, 2012, net cash collateral (received) paid of $(2) million and $2 million, respectively, were netted against the corresponding net derivative contract positions. Of the $(2) million as of September 30, 2013, $(1) million of cash collateral was netted against current assets, $(2) million was netted against noncurrent assets and $1 million was netted against current liabilities. Of the $2 million as of December 31, 2012, cash collateral of $(3) million and $5 million were netted against current assets and current liabilities, respectively. | |||||||||||||||||||||||||||||
Certain of Power’s derivative instruments contain provisions that require Power to post collateral. This collateral may be posted in the form of cash or credit support with thresholds contingent upon Power’s credit rating from each of the major credit rating agencies. The collateral and credit support requirements vary by contract and by counterparty. These credit risk-related contingent features stipulate that if Power were to be downgraded or lose its investment grade credit rating, it would be required to provide additional collateral. This incremental collateral requirement can offset collateral requirements related to other derivative instruments that are assets with the same counterparty, where the contractual right of offset exists under applicable master agreements. Power also enters into commodity transactions on the New York Mercantile Exchange (NYMEX) and Intercontinental Exchange (ICE). The NYMEX and ICE clearing houses act as counterparties to each trade. Transactions on NYMEX and ICE must adhere to comprehensive collateral and margin requirements. | ||||||||||||||||||||||||||||||
The aggregate fair value of all derivative instruments with credit risk-related contingent features in a liability position that are not fully collateralized (excluding transactions on NYMEX and ICE that are fully collateralized) was $75 million and $98 million as of September 30, 2013 and December 31, 2012, respectively. As of September 30, 2013 and December 31, 2012, Power had the contractual right of offset of $42 million and $61 million, respectively, related to derivative instruments that are assets with the same counterparty under agreements and net of margin posted. If Power had been downgraded or lost its investment grade rating, it would have had additional collateral obligations of $33 million and $37 million as of September 30, 2013 and December 31, 2012, respectively, related to its derivatives, net of the contractual right of offset under master agreements and the application of collateral. This potential additional collateral is included in the $588 million and $654 million as of September 30, 2013 and December 31, 2012, respectively, discussed in Note 9. Commitments and Contingent Liabilities. | ||||||||||||||||||||||||||||||
The following shows the effect on the Condensed Consolidated Statements of Operations and on Accumulated Other Comprehensive Income (AOCI) of derivative instruments designated as cash flow hedges for the three months ended September 30, 2013 and 2012: | ||||||||||||||||||||||||||||||
Derivatives in | Amount of | Location | Amount of | Location of | Amount of | |||||||||||||||||||||||||
Cash Flow Hedging | Pre-Tax | of Pre-Tax Gain | Pre-Tax | Pre-Tax Gain | Pre-Tax | |||||||||||||||||||||||||
Relationships | Gain (Loss) | (Loss) Reclassified | Gain (Loss) | (Loss) Recognized in | Gain (Loss) | |||||||||||||||||||||||||
Recognized in | from AOCI into | Reclassified | Income on | Recognized in | ||||||||||||||||||||||||||
AOCI on | Income | from AOCI | Derivatives | Income on | ||||||||||||||||||||||||||
Derivatives | into Income | (Ineffective Portion) | Derivatives | |||||||||||||||||||||||||||
(Effective | (Effective | (Ineffective | ||||||||||||||||||||||||||||
Portion) | Portion) | Portion) | ||||||||||||||||||||||||||||
Three Months Ended | Three Months Ended | Three Months Ended | ||||||||||||||||||||||||||||
September 30, | September 30, | September 30, | ||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||
Millions | ||||||||||||||||||||||||||||||
PSEG | ||||||||||||||||||||||||||||||
Energy-Related Contracts | $ | 1 | $ | (3 | ) | Operating Revenues | $ | 3 | $ | 15 | Operating Revenues | $ | (1 | ) | $ | (1 | ) | |||||||||||||
Total PSEG | $ | 1 | $ | (3 | ) | $ | 3 | $ | 15 | $ | (1 | ) | $ | (1 | ) | |||||||||||||||
Power | ||||||||||||||||||||||||||||||
Energy-Related Contracts | $ | 1 | $ | (3 | ) | Operating Revenues | $ | 3 | $ | 15 | Operating Revenues | $ | (1 | ) | $ | (1 | ) | |||||||||||||
Total Power | $ | 1 | $ | (3 | ) | $ | 3 | $ | 15 | $ | (1 | ) | $ | (1 | ) | |||||||||||||||
The following shows the effect on the Condensed Consolidated Statements of Operations and on AOCI of derivative instruments designated as cash flow hedges for the nine months ended September 30, 2013 and 2012: | ||||||||||||||||||||||||||||||
Derivatives in | Amount of | Location | Amount of | Location of | Amount of | |||||||||||||||||||||||||
Cash Flow Hedging | Pre-Tax | of Pre-Tax Gain | Pre-Tax | Pre-Tax Gain | Pre-Tax | |||||||||||||||||||||||||
Relationships | Gain (Loss) | (Loss) Reclassified | Gain (Loss) | (Loss) Recognized in | Gain (Loss) | |||||||||||||||||||||||||
Recognized in | from AOCI into | Reclassified | Income on | Recognized in | ||||||||||||||||||||||||||
AOCI on | Income | from AOCI | Derivatives | Income on | ||||||||||||||||||||||||||
Derivatives | into Income | (Ineffective Portion) | Derivatives | |||||||||||||||||||||||||||
(Effective | (Effective | (Ineffective | ||||||||||||||||||||||||||||
Portion) | Portion) | Portion) | ||||||||||||||||||||||||||||
Nine Months Ended | Nine Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||
September 30, | September 30, | September 30, | ||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||
Millions | ||||||||||||||||||||||||||||||
PSEG (A) | ||||||||||||||||||||||||||||||
Energy-Related Contracts | $ | 1 | $ | 27 | Operating Revenues | $ | 11 | $ | 67 | Operating Revenues | $ | (1 | ) | $ | (1 | ) | ||||||||||||||
Energy-Related Contracts | — | (4 | ) | Energy Costs | — | (9 | ) | — | — | |||||||||||||||||||||
Interest Rate Swaps | — | — | Interest Expense | (1 | ) | (1 | ) | — | — | |||||||||||||||||||||
Total PSEG | $ | 1 | $ | 23 | $ | 10 | $ | 57 | $ | (1 | ) | $ | (1 | ) | ||||||||||||||||
Power | ||||||||||||||||||||||||||||||
Energy-Related Contracts | $ | 1 | $ | 27 | Operating Revenues | $ | 11 | $ | 67 | Operating Revenues | $ | (1 | ) | $ | (1 | ) | ||||||||||||||
Energy-Related Contracts | — | (4 | ) | Energy Costs | — | (9 | ) | — | — | |||||||||||||||||||||
Total Power | $ | 1 | $ | 23 | $ | 11 | $ | 58 | $ | (1 | ) | $ | (1 | ) | ||||||||||||||||
(A) Includes amounts for PSEG parent. | ||||||||||||||||||||||||||||||
The following reconciles the Accumulated Other Comprehensive Income for derivative activity included in the Accumulated Other Comprehensive Loss of PSEG on a pre-tax and after-tax basis: | ||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income | Pre-Tax | After-Tax | ||||||||||||||||||||||||||||
Millions | ||||||||||||||||||||||||||||||
Balance as of December 31, 2012 | $ | 12 | $ | 7 | ||||||||||||||||||||||||||
Less: Gain Reclassified into Income | (7 | ) | (4 | ) | ||||||||||||||||||||||||||
Balance as of June 30, 2013 | $ | 5 | $ | 3 | ||||||||||||||||||||||||||
Gain Recognized in AOCI | $ | 1 | 1 | |||||||||||||||||||||||||||
Less: Gain Reclassified into Income | (3 | ) | (2 | ) | ||||||||||||||||||||||||||
Balance as of September 30, 2013 | $ | 3 | $ | 2 | ||||||||||||||||||||||||||
The following shows the effect on the Condensed Consolidated Statements of Operations of derivative instruments not designated as hedging instruments or as normal purchases and sales for the three months and nine months ended September 30, 2013 and 2012: | ||||||||||||||||||||||||||||||
Derivatives Not Designated as Hedges | Location of Pre-Tax | Pre-Tax Gain (Loss) | ||||||||||||||||||||||||||||
Gain (Loss) | Recognized in Income | |||||||||||||||||||||||||||||
Recognized in Income | on Derivatives | |||||||||||||||||||||||||||||
on Derivatives | ||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||
Millions | ||||||||||||||||||||||||||||||
PSEG and Power | ||||||||||||||||||||||||||||||
Energy-Related Contracts | Operating Revenues | $ | 14 | $ | (90 | ) | $ | (32 | ) | $ | 145 | |||||||||||||||||||
Energy-Related Contracts | Energy Costs | 10 | 6 | 63 | (17 | ) | ||||||||||||||||||||||||
Total PSEG and Power | $ | 24 | $ | (84 | ) | $ | 31 | $ | 128 | |||||||||||||||||||||
Power’s derivative contracts reflected in the preceding tables include contracts to hedge the purchase and sale of electricity and natural gas and the purchase of fuel. Not all of these contracts qualify for hedge accounting. Most of these contracts are marked to market. The tables above do not include contracts for which Power has elected the normal purchase/normal sales exemption, such as its BGS contracts and certain other energy supply contracts that it has with other utilities and companies with retail load. In addition, PSEG has interest rate swaps designated as fair value hedges. The effect of these hedges was to reduce interest expense by $4 million and $6 million for the three month periods and $14 million and $17 million for the nine month periods ended September 30, 2013 and 2012, respectively. | ||||||||||||||||||||||||||||||
The following reflects the gross volume, on an absolute value basis, of derivatives as of September 30, 2013 and December 31, 2012: | ||||||||||||||||||||||||||||||
Type | Notional | Total | PSEG | Power | PSE&G | |||||||||||||||||||||||||
Millions | ||||||||||||||||||||||||||||||
As of September 30, 2013 | ||||||||||||||||||||||||||||||
Natural Gas | Dth | 537 | — | 377 | 160 | |||||||||||||||||||||||||
Electricity | MWh | 247 | — | 247 | — | |||||||||||||||||||||||||
Capacity | MW days | 4 | — | — | 4 | |||||||||||||||||||||||||
FTRs | MWh | 22 | — | 22 | — | |||||||||||||||||||||||||
Interest Rate Swaps | U.S. Dollars | 850 | 850 | — | — | |||||||||||||||||||||||||
As of December 31, 2012 | ||||||||||||||||||||||||||||||
Natural Gas | Dth | 596 | — | 404 | 192 | |||||||||||||||||||||||||
Electricity | MWh | 208 | — | 208 | — | |||||||||||||||||||||||||
Capacity | MW days | 4 | — | — | 4 | |||||||||||||||||||||||||
FTRs | MWh | 19 | — | 19 | — | |||||||||||||||||||||||||
Interest Rate Swaps | U.S. Dollars | 850 | 850 | — | — | |||||||||||||||||||||||||
Coal | Tons | 1 | — | 1 | — | |||||||||||||||||||||||||
Credit Risk | ||||||||||||||||||||||||||||||
Credit risk relates to the risk of loss that we would incur as a result of non-performance by counterparties pursuant to the terms of their contractual obligations. We have established credit policies that we believe significantly minimize credit risk. These policies include an evaluation of potential counterparties’ financial condition (including credit rating), collateral requirements under certain circumstances and the use of standardized agreements, which allow for the netting of positive and negative exposures associated with a single counterparty. In the event of non-performance or non-payment by a major counterparty, there may be a material adverse impact on Power’s and PSEG’s financial condition, results of operations or net cash flows. | ||||||||||||||||||||||||||||||
As of September 30, 2013, 95% of the credit exposure for Power’s operations was with investment grade counterparties. Credit exposure is defined as any positive results of netting accounts receivable/accounts payable and the forward value of open positions (which includes all financial instruments including derivatives and non-derivatives and normal purchases/normal sales). | ||||||||||||||||||||||||||||||
The following table provides information on Power’s credit risk from others, net of cash collateral, as of September 30, 2013. It further delineates that exposure by the credit rating of the counterparties and provides guidance on the concentration of credit risk to individual counterparties and an indication of the quality of Power’s credit risk by credit rating of the counterparties. | ||||||||||||||||||||||||||||||
Rating | Current | Securities | Net | Number of | Net Exposure of | |||||||||||||||||||||||||
Exposure | Held as | Exposure | Counterparties | Counterparties | ||||||||||||||||||||||||||
Collateral | >10% | >10% | ||||||||||||||||||||||||||||
Millions | Millions | |||||||||||||||||||||||||||||
Investment Grade—External Rating | $ | 180 | $ | 17 | $ | 180 | 1 | $ | 90 | (A) | ||||||||||||||||||||
Non-Investment Grade—External Rating | 2 | — | 2 | — | — | |||||||||||||||||||||||||
Investment Grade—No External Rating | 7 | — | 7 | — | — | |||||||||||||||||||||||||
Non-Investment Grade—No External Rating | 8 | — | 8 | — | — | |||||||||||||||||||||||||
Total | $ | 197 | $ | 17 | $ | 197 | 1 | $ | 90 | |||||||||||||||||||||
(A) | Represents net exposure with PSE&G. | |||||||||||||||||||||||||||||
The net exposure listed above, in some cases, will not be the difference between the current exposure and the collateral held. A counterparty may have posted more cash collateral than the outstanding exposure, in which case there would be no exposure. When letters of credit have been posted as collateral, the exposure amount is not reduced, but the exposure amount is transferred to the rating of the issuing bank. As of September 30, 2013, Power had 142 active counterparties. | ||||||||||||||||||||||||||||||
PSE And G [Member] | ||||||||||||||||||||||||||||||
Financial Risk Management Activities | Financial Risk Management Activities | |||||||||||||||||||||||||||||
The operations of PSEG, Power and PSE&G are exposed to market risks from changes in commodity prices, interest rates and equity prices that could affect their results of operations and financial condition. Exposure to these risks is managed through normal operating and financing activities and, when appropriate, through hedging transactions. | ||||||||||||||||||||||||||||||
Hedging transactions use derivative instruments to create a relationship in which changes to the value of the assets, liabilities or anticipated transactions exposed to market risks are expected to be offset by changes in the value of these derivative instruments. | ||||||||||||||||||||||||||||||
Commodity Prices | ||||||||||||||||||||||||||||||
The availability and price of energy commodities are subject to fluctuations due to weather, environmental policies, changes in supply and demand, state and federal regulatory policies, market conditions, transmission availability and other events. Power uses physical and financial transactions in the wholesale energy markets to mitigate the effects of adverse movements in fuel and electricity prices. Derivative contracts that do not qualify for hedge accounting or normal purchases/normal sales treatment are marked to market (MTM) with changes in fair value recorded in the income statement. The fair value for the majority of these contracts is obtained from quoted market sources. Modeling techniques using assumptions reflective of current market rates, yield curves and forward prices are used to interpolate certain prices when no quoted market exists. | ||||||||||||||||||||||||||||||
Cash Flow Hedges | ||||||||||||||||||||||||||||||
Power uses forward sale and purchase contracts, swaps and futures contracts to hedge | ||||||||||||||||||||||||||||||
• | forecasted energy sales from its generation stations and the related load obligations, and | |||||||||||||||||||||||||||||
• | certain forecasted natural gas sales and purchases made to support the BGSS contract with PSE&G. | |||||||||||||||||||||||||||||
Certain of these derivative transactions are designated and effective as cash flow hedges. During the second quarter of 2012, Power de-designated certain of its commodity derivative transactions that had previously qualified as cash flow hedges as they were deemed to no longer be highly effective as required by the relevant accounting guidance. As a result, subsequent to June 1, 2012, Power recognizes all gains and losses from changes in the fair value of these derivatives immediately in earnings rather than deferring any such amounts in Accumulated Other Comprehensive Income (Loss). The fair values of Power’s de-designated hedges were frozen in Accumulated Other Comprehensive Income (Loss) as the original forecasted transactions are still expected to occur and are reclassified into earnings as the original derivative transactions settle. | ||||||||||||||||||||||||||||||
As of September 30, 2013 and December 31, 2012, the fair value and the impact on Accumulated Other Comprehensive Income (Loss) associated with accounting hedge activity were as follows: | ||||||||||||||||||||||||||||||
As of | As of | |||||||||||||||||||||||||||||
September 30, | December 31, | |||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||
Millions | ||||||||||||||||||||||||||||||
Fair Value of Cash Flow Hedges | $ | 1 | $ | 3 | ||||||||||||||||||||||||||
Impact on Accumulated Other Comprehensive Income (Loss) (after tax) | $ | 3 | $ | 9 | ||||||||||||||||||||||||||
The expiration date of the longest-dated cash flow hedge at Power is in 2014. Power’s remaining $3 million of after-tax unrealized gains on these derivatives is expected to be reclassified to earnings during the next 12 months. There was no ineffectiveness associated with qualifying hedges as of September 30, 2013. | ||||||||||||||||||||||||||||||
Trading Derivatives | ||||||||||||||||||||||||||||||
The primary purpose of Power’s wholesale marketing operation is to optimize the value of the output of the generating facilities via various products and services available in the markets it serves. Historically, Power engaged in trading of electricity and energy-related products where such transactions were not associated with the output or fuel purchase requirements of its facilities. This trading consisted mostly of energy supply contracts where Power secured sales commitments with the intent to supply the energy services from purchases in the market rather than from its owned generation. Such trading activities were marked to market through the income statement and represented less than one percent of gross margin (revenues less energy costs) on an annual basis. Effective July 2011, Power discontinued trading activities and anticipates that it will not enter into any more trading derivative contracts. | ||||||||||||||||||||||||||||||
Other Derivatives | ||||||||||||||||||||||||||||||
Power enters into additional contracts that are derivatives, but do not qualify for or are not designated as cash flow hedges. These transactions are intended to mitigate exposure to fluctuations in commodity prices and optimize the value of its expected generation. Trade types include financial options, futures, swaps, fuel purchases and forward purchases and sales of electricity. Changes in the fair market value of these contracts are recorded in earnings. PSE&G is a party to certain long-term natural gas sales contracts to optimize its pipeline capacity utilization. In addition, as further described in Note 9. Commitments and Contingent Liabilities, PSE&G was directed to execute long-term SOCAs with certain generators to support the LCAPP Act. These contracts qualify as derivatives and are marked to fair value with the offset recorded to Regulatory Assets and Liabilities. | ||||||||||||||||||||||||||||||
Interest Rates | ||||||||||||||||||||||||||||||
PSEG, Power and PSE&G are subject to the risk of fluctuating interest rates in the normal course of business. Exposure to this risk is managed by targeting a balanced debt maturity profile which limits refinancing in any given period or interest rate environment. In addition, they have used a mix of fixed and floating rate debt, interest rate swaps and interest rate lock agreements. | ||||||||||||||||||||||||||||||
Fair Value Hedges | ||||||||||||||||||||||||||||||
PSEG enters into fair value hedges to convert fixed-rate debt into variable-rate debt. As of September 30, 2013, PSEG had seven interest rate swaps outstanding totaling $850 million. These swaps convert Power’s $300 million of 5.5% Senior Notes due December 2015, $300 million of Power’s $303 million of 5.32% Senior Notes due September 2016 and Power’s $250 million of 2.75% Senior Notes due September 2016 into variable-rate debt. These interest rate swaps are designated and effective as fair value hedges. The fair value changes of the interest rate swaps are fully offset by the changes in the fair value of the underlying forecasted interest payments of the debt. As of September 30, 2013 and December 31, 2012, the fair value of all the underlying hedges was $42 million and $57 million, respectively. | ||||||||||||||||||||||||||||||
Cash Flow Hedges | ||||||||||||||||||||||||||||||
PSEG uses interest rate swaps and other derivatives, which are designated and effective as cash flow hedges, to manage its exposure to the variability of cash flows, primarily related to variable-rate debt instruments. The Accumulated Other Comprehensive Income (Loss) (after tax) related to interest rate derivatives designated as cash flow hedges was $(1) million and $(2) million as of September 30, 2013 and December 31, 2012, respectively. | ||||||||||||||||||||||||||||||
Fair Values of Derivative Instruments | ||||||||||||||||||||||||||||||
The following are the fair values of derivative instruments on the Condensed Consolidated Balance Sheets. The following tables also include disclosures for offsetting derivative assets and liabilities which are subject to a master netting or similar agreement. See Note 2. Recent Accounting Standards. In general, the terms of the agreements provide that in the event of an early termination the counterparties have the right to offset amounts owed or owing under that and any other agreement with the same counterparty. Accordingly, and in accordance with our accounting policy, these positions have been offset in the Condensed Consolidated Balance Sheets of Power, PSE&G and PSEG. The following tabular disclosure does not include the offsetting of trade receivables and payables. | ||||||||||||||||||||||||||||||
As of September 30, 2013 | ||||||||||||||||||||||||||||||
Power (A) | PSE&G(A) | PSEG (A) | Consolidated | |||||||||||||||||||||||||||
Cash Flow | Non | Non | Fair Value | |||||||||||||||||||||||||||
Hedges | Hedges | Hedges | Hedges | |||||||||||||||||||||||||||
Balance Sheet Location | Energy- | Energy- | Netting | Total | Energy- | Interest | Total | |||||||||||||||||||||||
Related | Related | (B) | Power | Related | Rate | Derivatives | ||||||||||||||||||||||||
Contracts | Contracts | Contracts | Swaps | |||||||||||||||||||||||||||
Millions | ||||||||||||||||||||||||||||||
Derivative Contracts | ||||||||||||||||||||||||||||||
Current Assets | $ | 1 | $ | 228 | $ | (157 | ) | $ | 72 | $ | 19 | $ | 16 | $ | 107 | |||||||||||||||
Noncurrent Assets | — | 164 | (75 | ) | 89 | 69 | 26 | 184 | ||||||||||||||||||||||
Total Mark-to-Market Derivative Assets | $ | 1 | $ | 392 | $ | (232 | ) | $ | 161 | $ | 88 | $ | 42 | $ | 291 | |||||||||||||||
Derivative Contracts | ||||||||||||||||||||||||||||||
Current Liabilities | $ | — | $ | (193 | ) | $ | 157 | $ | (36 | ) | $ | — | $ | — | $ | (36 | ) | |||||||||||||
Noncurrent Liabilities | — | (96 | ) | 73 | (23 | ) | (140 | ) | — | (163 | ) | |||||||||||||||||||
Total Mark-to-Market Derivative (Liabilities) | $ | — | $ | (289 | ) | $ | 230 | $ | (59 | ) | $ | (140 | ) | $ | — | $ | (199 | ) | ||||||||||||
Total Net Mark-to-Market Derivative Assets (Liabilities) | $ | 1 | $ | 103 | $ | (2 | ) | $ | 102 | $ | (52 | ) | $ | 42 | $ | 92 | ||||||||||||||
As of December 31, 2012 | ||||||||||||||||||||||||||||||
Power (A) | PSE&G (A) | PSEG (A) | Consolidated | |||||||||||||||||||||||||||
Cash Flow | Non | Non | Fair Value | |||||||||||||||||||||||||||
Hedges | Hedges | Hedges | Hedges | |||||||||||||||||||||||||||
Balance Sheet Location | Energy- | Energy- | Netting | Total | Energy- | Interest | Total | |||||||||||||||||||||||
Related | Related | (B) | Power | Related | Rate | Derivatives | ||||||||||||||||||||||||
Contracts | Contracts | Contracts | Swaps | |||||||||||||||||||||||||||
Millions | ||||||||||||||||||||||||||||||
Derivative Contracts | ||||||||||||||||||||||||||||||
Current Assets | $ | 3 | $ | 332 | $ | (217 | ) | $ | 118 | $ | 5 | $ | 15 | $ | 138 | |||||||||||||||
Noncurrent Assets | — | 75 | (26 | ) | 49 | 62 | 42 | 153 | ||||||||||||||||||||||
Total Mark-to-Market Derivative Assets | $ | 3 | $ | 407 | $ | (243 | ) | $ | 167 | $ | 67 | $ | 57 | $ | 291 | |||||||||||||||
Derivative Contracts | ||||||||||||||||||||||||||||||
Current Liabilities | $ | — | $ | (265 | ) | $ | 219 | $ | (46 | ) | $ | — | $ | — | $ | (46 | ) | |||||||||||||
Noncurrent Liabilities | — | (41 | ) | 26 | (15 | ) | (107 | ) | — | (122 | ) | |||||||||||||||||||
Total Mark-to-Market Derivative (Liabilities) | $ | — | $ | (306 | ) | $ | 245 | $ | (61 | ) | $ | (107 | ) | $ | — | $ | (168 | ) | ||||||||||||
Total Net Mark-to-Market Derivative Assets (Liabilities) | $ | 3 | $ | 101 | $ | 2 | $ | 106 | $ | (40 | ) | $ | 57 | $ | 123 | |||||||||||||||
(A) | Substantially all of Power's and PSEG's derivative instruments are contracts subject to master netting agreements. Contracts not subject to master netting or similar agreements are immaterial and did not have any collateral posted or received as of September 30, 2013 and December 31, 2012. 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 in the statement of financial position. As of September 30, 2013 and December 31, 2012, net cash collateral (received) paid of $(2) million and $2 million, respectively, were netted against the corresponding net derivative contract positions. Of the $(2) million as of September 30, 2013, $(1) million of cash collateral was netted against current assets, $(2) million was netted against noncurrent assets and $1 million was netted against current liabilities. Of the $2 million as of December 31, 2012, cash collateral of $(3) million and $5 million were netted against current assets and current liabilities, respectively. | |||||||||||||||||||||||||||||
Certain of Power’s derivative instruments contain provisions that require Power to post collateral. This collateral may be posted in the form of cash or credit support with thresholds contingent upon Power’s credit rating from each of the major credit rating agencies. The collateral and credit support requirements vary by contract and by counterparty. These credit risk-related contingent features stipulate that if Power were to be downgraded or lose its investment grade credit rating, it would be required to provide additional collateral. This incremental collateral requirement can offset collateral requirements related to other derivative instruments that are assets with the same counterparty, where the contractual right of offset exists under applicable master agreements. Power also enters into commodity transactions on the New York Mercantile Exchange (NYMEX) and Intercontinental Exchange (ICE). The NYMEX and ICE clearing houses act as counterparties to each trade. Transactions on NYMEX and ICE must adhere to comprehensive collateral and margin requirements. | ||||||||||||||||||||||||||||||
The aggregate fair value of all derivative instruments with credit risk-related contingent features in a liability position that are not fully collateralized (excluding transactions on NYMEX and ICE that are fully collateralized) was $75 million and $98 million as of September 30, 2013 and December 31, 2012, respectively. As of September 30, 2013 and December 31, 2012, Power had the contractual right of offset of $42 million and $61 million, respectively, related to derivative instruments that are assets with the same counterparty under agreements and net of margin posted. If Power had been downgraded or lost its investment grade rating, it would have had additional collateral obligations of $33 million and $37 million as of September 30, 2013 and December 31, 2012, respectively, related to its derivatives, net of the contractual right of offset under master agreements and the application of collateral. This potential additional collateral is included in the $588 million and $654 million as of September 30, 2013 and December 31, 2012, respectively, discussed in Note 9. Commitments and Contingent Liabilities. | ||||||||||||||||||||||||||||||
The following shows the effect on the Condensed Consolidated Statements of Operations and on Accumulated Other Comprehensive Income (AOCI) of derivative instruments designated as cash flow hedges for the three months ended September 30, 2013 and 2012: | ||||||||||||||||||||||||||||||
Derivatives in | Amount of | Location | Amount of | Location of | Amount of | |||||||||||||||||||||||||
Cash Flow Hedging | Pre-Tax | of Pre-Tax Gain | Pre-Tax | Pre-Tax Gain | Pre-Tax | |||||||||||||||||||||||||
Relationships | Gain (Loss) | (Loss) Reclassified | Gain (Loss) | (Loss) Recognized in | Gain (Loss) | |||||||||||||||||||||||||
Recognized in | from AOCI into | Reclassified | Income on | Recognized in | ||||||||||||||||||||||||||
AOCI on | Income | from AOCI | Derivatives | Income on | ||||||||||||||||||||||||||
Derivatives | into Income | (Ineffective Portion) | Derivatives | |||||||||||||||||||||||||||
(Effective | (Effective | (Ineffective | ||||||||||||||||||||||||||||
Portion) | Portion) | Portion) | ||||||||||||||||||||||||||||
Three Months Ended | Three Months Ended | Three Months Ended | ||||||||||||||||||||||||||||
September 30, | September 30, | September 30, | ||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||
Millions | ||||||||||||||||||||||||||||||
PSEG | ||||||||||||||||||||||||||||||
Energy-Related Contracts | $ | 1 | $ | (3 | ) | Operating Revenues | $ | 3 | $ | 15 | Operating Revenues | $ | (1 | ) | $ | (1 | ) | |||||||||||||
Total PSEG | $ | 1 | $ | (3 | ) | $ | 3 | $ | 15 | $ | (1 | ) | $ | (1 | ) | |||||||||||||||
Power | ||||||||||||||||||||||||||||||
Energy-Related Contracts | $ | 1 | $ | (3 | ) | Operating Revenues | $ | 3 | $ | 15 | Operating Revenues | $ | (1 | ) | $ | (1 | ) | |||||||||||||
Total Power | $ | 1 | $ | (3 | ) | $ | 3 | $ | 15 | $ | (1 | ) | $ | (1 | ) | |||||||||||||||
The following shows the effect on the Condensed Consolidated Statements of Operations and on AOCI of derivative instruments designated as cash flow hedges for the nine months ended September 30, 2013 and 2012: | ||||||||||||||||||||||||||||||
Derivatives in | Amount of | Location | Amount of | Location of | Amount of | |||||||||||||||||||||||||
Cash Flow Hedging | Pre-Tax | of Pre-Tax Gain | Pre-Tax | Pre-Tax Gain | Pre-Tax | |||||||||||||||||||||||||
Relationships | Gain (Loss) | (Loss) Reclassified | Gain (Loss) | (Loss) Recognized in | Gain (Loss) | |||||||||||||||||||||||||
Recognized in | from AOCI into | Reclassified | Income on | Recognized in | ||||||||||||||||||||||||||
AOCI on | Income | from AOCI | Derivatives | Income on | ||||||||||||||||||||||||||
Derivatives | into Income | (Ineffective Portion) | Derivatives | |||||||||||||||||||||||||||
(Effective | (Effective | (Ineffective | ||||||||||||||||||||||||||||
Portion) | Portion) | Portion) | ||||||||||||||||||||||||||||
Nine Months Ended | Nine Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||
September 30, | September 30, | September 30, | ||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||
Millions | ||||||||||||||||||||||||||||||
PSEG (A) | ||||||||||||||||||||||||||||||
Energy-Related Contracts | $ | 1 | $ | 27 | Operating Revenues | $ | 11 | $ | 67 | Operating Revenues | $ | (1 | ) | $ | (1 | ) | ||||||||||||||
Energy-Related Contracts | — | (4 | ) | Energy Costs | — | (9 | ) | — | — | |||||||||||||||||||||
Interest Rate Swaps | — | — | Interest Expense | (1 | ) | (1 | ) | — | — | |||||||||||||||||||||
Total PSEG | $ | 1 | $ | 23 | $ | 10 | $ | 57 | $ | (1 | ) | $ | (1 | ) | ||||||||||||||||
Power | ||||||||||||||||||||||||||||||
Energy-Related Contracts | $ | 1 | $ | 27 | Operating Revenues | $ | 11 | $ | 67 | Operating Revenues | $ | (1 | ) | $ | (1 | ) | ||||||||||||||
Energy-Related Contracts | — | (4 | ) | Energy Costs | — | (9 | ) | — | — | |||||||||||||||||||||
Total Power | $ | 1 | $ | 23 | $ | 11 | $ | 58 | $ | (1 | ) | $ | (1 | ) | ||||||||||||||||
(A) Includes amounts for PSEG parent. | ||||||||||||||||||||||||||||||
The following reconciles the Accumulated Other Comprehensive Income for derivative activity included in the Accumulated Other Comprehensive Loss of PSEG on a pre-tax and after-tax basis: | ||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income | Pre-Tax | After-Tax | ||||||||||||||||||||||||||||
Millions | ||||||||||||||||||||||||||||||
Balance as of December 31, 2012 | $ | 12 | $ | 7 | ||||||||||||||||||||||||||
Less: Gain Reclassified into Income | (7 | ) | (4 | ) | ||||||||||||||||||||||||||
Balance as of June 30, 2013 | $ | 5 | $ | 3 | ||||||||||||||||||||||||||
Gain Recognized in AOCI | $ | 1 | 1 | |||||||||||||||||||||||||||
Less: Gain Reclassified into Income | (3 | ) | (2 | ) | ||||||||||||||||||||||||||
Balance as of September 30, 2013 | $ | 3 | $ | 2 | ||||||||||||||||||||||||||
The following shows the effect on the Condensed Consolidated Statements of Operations of derivative instruments not designated as hedging instruments or as normal purchases and sales for the three months and nine months ended September 30, 2013 and 2012: | ||||||||||||||||||||||||||||||
Derivatives Not Designated as Hedges | Location of Pre-Tax | Pre-Tax Gain (Loss) | ||||||||||||||||||||||||||||
Gain (Loss) | Recognized in Income | |||||||||||||||||||||||||||||
Recognized in Income | on Derivatives | |||||||||||||||||||||||||||||
on Derivatives | ||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||
Millions | ||||||||||||||||||||||||||||||
PSEG and Power | ||||||||||||||||||||||||||||||
Energy-Related Contracts | Operating Revenues | $ | 14 | $ | (90 | ) | $ | (32 | ) | $ | 145 | |||||||||||||||||||
Energy-Related Contracts | Energy Costs | 10 | 6 | 63 | (17 | ) | ||||||||||||||||||||||||
Total PSEG and Power | $ | 24 | $ | (84 | ) | $ | 31 | $ | 128 | |||||||||||||||||||||
Power’s derivative contracts reflected in the preceding tables include contracts to hedge the purchase and sale of electricity and natural gas and the purchase of fuel. Not all of these contracts qualify for hedge accounting. Most of these contracts are marked to market. The tables above do not include contracts for which Power has elected the normal purchase/normal sales exemption, such as its BGS contracts and certain other energy supply contracts that it has with other utilities and companies with retail load. In addition, PSEG has interest rate swaps designated as fair value hedges. The effect of these hedges was to reduce interest expense by $4 million and $6 million for the three month periods and $14 million and $17 million for the nine month periods ended September 30, 2013 and 2012, respectively. | ||||||||||||||||||||||||||||||
The following reflects the gross volume, on an absolute value basis, of derivatives as of September 30, 2013 and December 31, 2012: | ||||||||||||||||||||||||||||||
Type | Notional | Total | PSEG | Power | PSE&G | |||||||||||||||||||||||||
Millions | ||||||||||||||||||||||||||||||
As of September 30, 2013 | ||||||||||||||||||||||||||||||
Natural Gas | Dth | 537 | — | 377 | 160 | |||||||||||||||||||||||||
Electricity | MWh | 247 | — | 247 | — | |||||||||||||||||||||||||
Capacity | MW days | 4 | — | — | 4 | |||||||||||||||||||||||||
FTRs | MWh | 22 | — | 22 | — | |||||||||||||||||||||||||
Interest Rate Swaps | U.S. Dollars | 850 | 850 | — | — | |||||||||||||||||||||||||
As of December 31, 2012 | ||||||||||||||||||||||||||||||
Natural Gas | Dth | 596 | — | 404 | 192 | |||||||||||||||||||||||||
Electricity | MWh | 208 | — | 208 | — | |||||||||||||||||||||||||
Capacity | MW days | 4 | — | — | 4 | |||||||||||||||||||||||||
FTRs | MWh | 19 | — | 19 | — | |||||||||||||||||||||||||
Interest Rate Swaps | U.S. Dollars | 850 | 850 | — | — | |||||||||||||||||||||||||
Coal | Tons | 1 | — | 1 | — | |||||||||||||||||||||||||
Credit Risk | ||||||||||||||||||||||||||||||
Credit risk relates to the risk of loss that we would incur as a result of non-performance by counterparties pursuant to the terms of their contractual obligations. We have established credit policies that we believe significantly minimize credit risk. These policies include an evaluation of potential counterparties’ financial condition (including credit rating), collateral requirements under certain circumstances and the use of standardized agreements, which allow for the netting of positive and negative exposures associated with a single counterparty. In the event of non-performance or non-payment by a major counterparty, there may be a material adverse impact on Power’s and PSEG’s financial condition, results of operations or net cash flows. | ||||||||||||||||||||||||||||||
As of September 30, 2013, 95% of the credit exposure for Power’s operations was with investment grade counterparties. Credit exposure is defined as any positive results of netting accounts receivable/accounts payable and the forward value of open positions (which includes all financial instruments including derivatives and non-derivatives and normal purchases/normal sales). | ||||||||||||||||||||||||||||||
The following table provides information on Power’s credit risk from others, net of cash collateral, as of September 30, 2013. It further delineates that exposure by the credit rating of the counterparties and provides guidance on the concentration of credit risk to individual counterparties and an indication of the quality of Power’s credit risk by credit rating of the counterparties. | ||||||||||||||||||||||||||||||
Rating | Current | Securities | Net | Number of | Net Exposure of | |||||||||||||||||||||||||
Exposure | Held as | Exposure | Counterparties | Counterparties | ||||||||||||||||||||||||||
Collateral | >10% | >10% | ||||||||||||||||||||||||||||
Millions | Millions | |||||||||||||||||||||||||||||
Investment Grade—External Rating | $ | 180 | $ | 17 | $ | 180 | 1 | $ | 90 | (A) | ||||||||||||||||||||
Non-Investment Grade—External Rating | 2 | — | 2 | — | — | |||||||||||||||||||||||||
Investment Grade—No External Rating | 7 | — | 7 | — | — | |||||||||||||||||||||||||
Non-Investment Grade—No External Rating | 8 | — | 8 | — | — | |||||||||||||||||||||||||
Total | $ | 197 | $ | 17 | $ | 197 | 1 | $ | 90 | |||||||||||||||||||||
(A) | Represents net exposure with PSE&G. | |||||||||||||||||||||||||||||
The net exposure listed above, in some cases, will not be the difference between the current exposure and the collateral held. A counterparty may have posted more cash collateral than the outstanding exposure, in which case there would be no exposure. When letters of credit have been posted as collateral, the exposure amount is not reduced, but the exposure amount is transferred to the rating of the issuing bank. As of September 30, 2013, Power had 142 active counterparties. |
Fair_Value_Measurements
Fair Value Measurements | 9 Months Ended | ||||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements | ||||||||||||||||||||||||||||||
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Accounting guidance for fair value measurement emphasizes that fair value is a market-based measurement, not an entity-specific measurement, and establishes a fair value hierarchy that distinguishes between assumptions based on market data obtained from independent sources and those based on an entity’s own assumptions. The hierarchy prioritizes the inputs to fair value measurement into three levels: | |||||||||||||||||||||||||||||||
Level 1—measurements utilize quoted prices (unadjusted) in active markets for identical assets or liabilities that PSEG, Power and PSE&G have the ability to access. These consist primarily of listed equity securities. | |||||||||||||||||||||||||||||||
Level 2—measurements include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active and other observable inputs such as interest rates and yield curves that are observable at commonly quoted intervals. These consist primarily of non-exchange traded derivatives such as forward contracts or options and most fixed income securities. | |||||||||||||||||||||||||||||||
Level 3—measurements use unobservable inputs for assets or liabilities, based on the best information available and might include an entity’s own data and assumptions. In some valuations, the inputs used may fall into different levels of the hierarchy. In these cases, the financial instrument’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. As of September 30, 2013, these consist primarily of electric swaps whose basis is deemed significant to the fair value measurement, long-term electric load contracts, gas supply contracts and long-term capacity contracts. | |||||||||||||||||||||||||||||||
The following tables present information about PSEG’s, Power’s and PSE&G’s respective assets and (liabilities) measured at fair value on a recurring basis as of September 30, 2013 and December 31, 2012, including the fair value measurements and the levels of inputs used in determining those fair values. Amounts shown for PSEG include the amounts shown for Power and PSE&G. | |||||||||||||||||||||||||||||||
Recurring Fair Value Measurements as of September 30, 2013 | |||||||||||||||||||||||||||||||
Description | Total | Cash | Quoted Market Prices for Identical Assets | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs | ||||||||||||||||||||||||||
Collateral | (Level 1) | (Level 3) | |||||||||||||||||||||||||||||
Netting (D) | |||||||||||||||||||||||||||||||
Millions | |||||||||||||||||||||||||||||||
PSEG | |||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||
Derivative Contracts: | |||||||||||||||||||||||||||||||
Energy-Related Contracts (A) | $ | 249 | $ | (3 | ) | $ | — | $ | 156 | $ | 96 | ||||||||||||||||||||
Interest Rate Swaps (B) | $ | 42 | $ | — | $ | — | $ | 42 | $ | — | |||||||||||||||||||||
NDT Fund (C) | |||||||||||||||||||||||||||||||
Equity Securities | $ | 843 | $ | — | $ | 842 | $ | 1 | $ | — | |||||||||||||||||||||
Debt Securities—Govt Obligations | $ | 410 | $ | — | $ | — | $ | 410 | $ | — | |||||||||||||||||||||
Debt Securities—Other | $ | 320 | $ | — | $ | — | $ | 320 | $ | — | |||||||||||||||||||||
Other Securities | $ | 62 | $ | — | $ | — | $ | 62 | $ | — | |||||||||||||||||||||
Rabbi Trust (C) | |||||||||||||||||||||||||||||||
Equity Securities—Mutual Funds | $ | 21 | $ | — | $ | 21 | $ | — | $ | — | |||||||||||||||||||||
Debt Securities—Govt Obligations | $ | 108 | $ | — | $ | — | $ | 108 | $ | — | |||||||||||||||||||||
Debt Securities—Other | $ | 44 | $ | — | $ | — | $ | 44 | $ | — | |||||||||||||||||||||
Other Securities | $ | 2 | $ | — | $ | — | $ | 2 | $ | — | |||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||
Derivative Contracts: | |||||||||||||||||||||||||||||||
Energy-Related Contracts (A) | $ | (199 | ) | $ | 1 | $ | — | $ | (58 | ) | $ | (142 | ) | ||||||||||||||||||
Power | |||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||
Derivative Contracts: | |||||||||||||||||||||||||||||||
Energy-Related Contracts (A) | $ | 161 | $ | (3 | ) | $ | — | $ | 156 | $ | 8 | ||||||||||||||||||||
NDT Fund (C) | |||||||||||||||||||||||||||||||
Equity Securities | $ | 843 | $ | — | $ | 842 | $ | 1 | $ | — | |||||||||||||||||||||
Debt Securities—Govt Obligations | $ | 410 | $ | — | $ | — | $ | 410 | $ | — | |||||||||||||||||||||
Debt Securities—Other | $ | 320 | $ | — | $ | — | $ | 320 | $ | — | |||||||||||||||||||||
Other Securities | $ | 62 | $ | — | $ | — | $ | 62 | $ | — | |||||||||||||||||||||
Rabbi Trust (C) | |||||||||||||||||||||||||||||||
Equity Securities—Mutual Funds | $ | 5 | $ | — | $ | 5 | $ | — | $ | — | |||||||||||||||||||||
Debt Securities—Govt Obligations | $ | 23 | $ | — | $ | — | $ | 23 | $ | — | |||||||||||||||||||||
Debt Securities—Other | $ | 10 | $ | — | $ | — | $ | 10 | $ | — | |||||||||||||||||||||
Other Securities | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||
Derivative Contracts: | |||||||||||||||||||||||||||||||
Energy-Related Contracts (A) | $ | (59 | ) | $ | 1 | $ | — | $ | (58 | ) | $ | (2 | ) | ||||||||||||||||||
PSE&G | |||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||
Derivative Contracts: | |||||||||||||||||||||||||||||||
Energy-Related Contracts (A) | $ | 88 | $ | — | $ | — | $ | — | $ | 88 | |||||||||||||||||||||
Rabbi Trust (C) | |||||||||||||||||||||||||||||||
Equity Securities—Mutual Funds | $ | 5 | $ | — | $ | 5 | $ | — | $ | — | |||||||||||||||||||||
Debt Securities—Govt Obligations | $ | 26 | $ | — | $ | — | $ | 26 | $ | — | |||||||||||||||||||||
Debt Securities—Other | $ | 10 | $ | — | $ | — | $ | 10 | $ | — | |||||||||||||||||||||
Other Securities | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||
Derivative Contracts: | |||||||||||||||||||||||||||||||
Energy-Related Contracts (A) | $ | (140 | ) | $ | — | $ | — | $ | — | $ | (140 | ) | |||||||||||||||||||
Recurring Fair Value Measurements as of December 31, 2012 | |||||||||||||||||||||||||||||||
Description | Total | Cash | Quoted Market Prices for Identical Assets | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs | ||||||||||||||||||||||||||
Collateral | (Level 1) | (Level 3) | |||||||||||||||||||||||||||||
Netting (D) | |||||||||||||||||||||||||||||||
Millions | |||||||||||||||||||||||||||||||
PSEG | |||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||
Derivative Contracts: | |||||||||||||||||||||||||||||||
Energy-Related Contracts (A) | $ | 234 | $ | (3 | ) | $ | — | $ | 157 | $ | 80 | ||||||||||||||||||||
Interest Rate Swaps (B) | $ | 57 | $ | — | $ | — | $ | 57 | $ | — | |||||||||||||||||||||
NDT Fund (C) | |||||||||||||||||||||||||||||||
Equity Securities | $ | 789 | $ | — | $ | 789 | $ | — | $ | — | |||||||||||||||||||||
Debt Securities—Govt Obligations | $ | 285 | $ | — | $ | — | $ | 285 | $ | — | |||||||||||||||||||||
Debt Securities—Other | $ | 342 | $ | — | $ | — | $ | 342 | $ | — | |||||||||||||||||||||
Other Securities | $ | 124 | $ | — | $ | — | $ | 124 | $ | — | |||||||||||||||||||||
Rabbi Trust (C) | |||||||||||||||||||||||||||||||
Equity Securities—Mutual Funds | $ | 18 | $ | — | $ | 18 | $ | — | $ | — | |||||||||||||||||||||
Debt Securities—Govt Obligations | $ | 117 | $ | — | $ | — | $ | 117 | $ | — | |||||||||||||||||||||
Debt Securities—Other | $ | 47 | $ | — | $ | — | $ | 47 | $ | — | |||||||||||||||||||||
Other Securities | $ | 3 | $ | — | $ | — | $ | 3 | $ | — | |||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||
Derivative Contracts: | |||||||||||||||||||||||||||||||
Energy-Related Contracts (A) | $ | (168 | ) | $ | 5 | $ | — | $ | (62 | ) | $ | (111 | ) | ||||||||||||||||||
Power | |||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||
Derivative Contracts: | |||||||||||||||||||||||||||||||
Energy-Related Contracts (A) | $ | 167 | $ | (3 | ) | $ | — | $ | 157 | $ | 13 | ||||||||||||||||||||
NDT Fund (C) | |||||||||||||||||||||||||||||||
Equity Securities | $ | 789 | $ | — | $ | 789 | $ | — | $ | — | |||||||||||||||||||||
Debt Securities—Govt Obligations | $ | 285 | $ | — | $ | — | $ | 285 | $ | — | |||||||||||||||||||||
Debt Securities—Other | $ | 342 | $ | — | $ | — | $ | 342 | $ | — | |||||||||||||||||||||
Other Securities | $ | 124 | $ | — | $ | — | $ | 124 | $ | — | |||||||||||||||||||||
Rabbi Trust (C) | |||||||||||||||||||||||||||||||
Equity Securities—Mutual Funds | $ | 3 | $ | — | $ | 3 | $ | — | $ | — | |||||||||||||||||||||
Debt Securities—Govt Obligations | $ | 23 | $ | — | $ | — | $ | 23 | $ | — | |||||||||||||||||||||
Debt Securities—Other | $ | 9 | $ | — | $ | — | $ | 9 | $ | — | |||||||||||||||||||||
Other Securities | $ | 1 | $ | — | $ | — | $ | 1 | $ | — | |||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||
Derivative Contracts: | |||||||||||||||||||||||||||||||
Energy-Related Contracts (A) | $ | (61 | ) | $ | 5 | $ | — | $ | (62 | ) | $ | (4 | ) | ||||||||||||||||||
PSE&G | |||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||
Derivative Contracts: | |||||||||||||||||||||||||||||||
Energy Related Contracts (A) | $ | 67 | $ | — | $ | — | $ | — | $ | 67 | |||||||||||||||||||||
Rabbi Trust (C) | |||||||||||||||||||||||||||||||
Equity Securities—Mutual Funds | $ | 6 | $ | — | $ | 6 | $ | — | $ | — | |||||||||||||||||||||
Debt Securities—Govt Obligations | $ | 39 | $ | — | $ | — | $ | 39 | $ | — | |||||||||||||||||||||
Debt Securities—Other | $ | 15 | $ | — | $ | — | $ | 15 | $ | — | |||||||||||||||||||||
Other Securities | $ | 1 | $ | — | $ | — | $ | 1 | $ | — | |||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||
Derivative Contracts: | |||||||||||||||||||||||||||||||
Energy Related Contracts (A) | $ | (107 | ) | $ | — | $ | — | $ | — | $ | (107 | ) | |||||||||||||||||||
(A) | Level 2—Fair values for energy-related contracts are obtained primarily using a market-based approach. Most derivative contracts (forward purchase or sale contracts and swaps) are valued using the average of the bid/ask midpoints from multiple broker or dealer quotes or auction prices. Prices used in the valuation process are also corroborated independently by management to determine that values are based on actual transaction data or, in the absence of transactions, bid and offers for the day. Examples may include certain exchange and non-exchange traded capacity and electricity contracts and natural gas physical or swap contracts based on market prices, basis adjustments and other premiums where adjustments and premiums are not considered significant to the overall inputs. | ||||||||||||||||||||||||||||||
Level 3—For energy-related contracts, which include more complex agreements where limited observable inputs or pricing information are available, modeling techniques are employed using assumptions reflective of contractual terms, current market rates, forward price curves, discount rates and risk factors, as applicable. Fair values of other energy contracts may be based on broker quotes that we cannot corroborate with actual market transaction data. | |||||||||||||||||||||||||||||||
(B) | Interest rate swaps are valued using quoted prices on commonly quoted intervals, which are interpolated for periods different than the quoted intervals, as inputs to a market valuation model. Market inputs can generally be verified and model selection does not involve significant management judgment. | ||||||||||||||||||||||||||||||
(C) | The NDT Fund maintains investments in various equity and fixed income securities classified as “available for sale.” The Rabbi Trust maintains investments in an S&P 500 index fund and various fixed income securities classified as “available for sale.” 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). | ||||||||||||||||||||||||||||||
Level 1—Investments in marketable equity securities within the NDT Fund are primarily investments in common stocks across a broad range of industries and sectors. Most equity securities are priced utilizing the principal market close price or, in some cases, midpoint, bid or ask price (primarily Level 1). The Rabbi Trust equity index fund is valued based on quoted prices in an active market (Level 1). | |||||||||||||||||||||||||||||||
Level 2—NDT and Rabbi Trust fixed income securities are limited to investment grade corporate bonds and United States Treasury obligations or Federal Agency asset-backed securities with a wide range of maturities. Since many fixed income securities do not trade on a daily basis, they are priced using an evaluated pricing methodology 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 (primarily Level 2). Short-term investments and certain commingled temporary investments are valued using observable market prices or market parameters such as time-to-maturity, coupon rate, quality rating and current yield (primarily Level 2). | |||||||||||||||||||||||||||||||
(D) | Cash collateral netting represents collateral amounts netted against derivative assets and liabilities as permitted under the accounting guidance for Offsetting of Amounts Related to Certain Contracts. | ||||||||||||||||||||||||||||||
Additional Information Regarding Level 3 Measurements | |||||||||||||||||||||||||||||||
For valuations that include both observable and unobservable inputs, if the unobservable input is determined to be significant to the overall inputs, the entire valuation is categorized in Level 3. This includes derivatives valued using indicative price quotations for contracts with tenors that extend into periods with no observable pricing. In instances where observable data is unavailable, consideration is given to the assumptions that market participants would use in valuing the asset or liability. This includes assumptions about market risks such as liquidity, volatility and contract duration. Such instruments are categorized in Level 3 because the model inputs generally are not observable. PSEG’s Risk Management Committee approves risk management policies and objectives for risk assessment, control and valuation, counterparty credit approval, and the monitoring and reporting of risk exposures. The Risk Management Committee reports to the Audit Committee of the PSEG Board of Directors on the scope of the risk management activities and is responsible for approving all valuation procedures at PSEG. Forward price curves for the power market utilized by Power to manage the portfolio are maintained and reviewed by PSEG’s Enterprise Risk Management market pricing group, and used for financial reporting purposes. PSEG considers credit and nonperformance risk in the valuation of derivative contracts categorized in Levels 2 and 3, including both historical and current market data, in its assessment of credit and nonperformance risk by counterparty. The impacts of credit and nonperformance risk were not material to the financial statements. | |||||||||||||||||||||||||||||||
For Power, in general, electric swaps are measured at fair value based on at least two pricing inputs, the underlying price of electricity at a liquid reference point and the basis difference between electricity prices at the liquid reference point and electricity prices at the respective delivery locations. To the extent the basis component is based on a single broker quote and is significant to the fair value of the electric swap, it is categorized as Level 3. The fair value of Power's electric load contracts in which load consumption may change hourly based on demand are measured using certain unobservable inputs, such as historic load variability and, accordingly, are categorized as Level 3. For Power, long-term electric capacity contracts are measured using capacity auction prices. If the fair value for the unobservable tenor is significant, then the entire capacity contract is categorized as Level 3. For Power and PSE&G, natural gas supply contracts are measured at fair value using modeling techniques taking into account the current price of natural gas adjusted for appropriate risk factors as applicable, and internal assumptions about transportation costs, and accordingly, the fair value measurements are classified in Level 3. For PSE&G, long-term electric capacity contracts are measured at fair value using both observable capacity auction prices and unobservable future long-term capacity prices. The measurement of these contracts include adjustments for contingencies, such as the potential outcome of litigation specifically related to the contract and the risk related to the construction of the specified capacity facilities. Accordingly, the fair value measurements are classified as Level 3. The following tables provide details surrounding significant Level 3 valuations as of September 30, 2013 and December 31, 2012. | |||||||||||||||||||||||||||||||
Quantitative Information About Level 3 Fair Value Measurements | |||||||||||||||||||||||||||||||
Significant | |||||||||||||||||||||||||||||||
Fair Value as of | Valuation | Unobservable | |||||||||||||||||||||||||||||
Commodity | Level 3 Position | 30-Sep-13 | Technique(s) | Input | Range | ||||||||||||||||||||||||||
Assets | (Liabilities) | ||||||||||||||||||||||||||||||
Millions | |||||||||||||||||||||||||||||||
Power | |||||||||||||||||||||||||||||||
Electricity | Electric Swaps | $ | 7 | $ | — | Discounted Cash Flow | Power Basis | $0 to $10/MWh | |||||||||||||||||||||||
Electricity | Electric Load Contracts | — | (2 | ) | Discounted Cash Flow | Historic Load Variability | -5% to +10% | ||||||||||||||||||||||||
Other | Various (A) | 1 | — | ||||||||||||||||||||||||||||
Total Power | $ | 8 | $ | (2 | ) | ||||||||||||||||||||||||||
PSE&G | |||||||||||||||||||||||||||||||
Gas and Capacity | Forward Contracts (B) | $ | 88 | $ | (140 | ) | Discounted Cash Flow | Long-Term Capacity Prices and Transportation Costs | (B) | ||||||||||||||||||||||
Total PSE&G | $ | 88 | $ | (140 | ) | ||||||||||||||||||||||||||
TOTAL PSEG | $ | 96 | $ | (142 | ) | ||||||||||||||||||||||||||
Quantitative Information About Level 3 Fair Value Measurements | |||||||||||||||||||||||||||||||
Commodity | Level 3 Position | Fair Value as of December 31, 2012 | Valuation | Significant | Range | ||||||||||||||||||||||||||
Technique(s) | Unobservable Input | ||||||||||||||||||||||||||||||
Assets | (Liabilities) | ||||||||||||||||||||||||||||||
Millions | |||||||||||||||||||||||||||||||
Power | |||||||||||||||||||||||||||||||
Electricity | Electric Swaps | $ | 7 | $ | (1 | ) | Discounted Cash Flow | Power Basis | $0 to $10/MWh | ||||||||||||||||||||||
Electricity | Electric Load Contracts | 1 | (2 | ) | Discounted Cash Flow | Historic Load Variability | -5% to +10% | ||||||||||||||||||||||||
Other | Various (A) | 5 | (1 | ) | |||||||||||||||||||||||||||
Total Power | $ | 13 | $ | (4 | ) | ||||||||||||||||||||||||||
PSE&G | |||||||||||||||||||||||||||||||
Gas and Capacity | Forward Contracts (C) | $ | 67 | $ | (107 | ) | Discounted Cash Flow | Long-Term Gas Basis and Capacity Prices | (C) | ||||||||||||||||||||||
Total PSE&G | $ | 67 | $ | (107 | ) | ||||||||||||||||||||||||||
TOTAL PSEG | $ | 80 | $ | (111 | ) | ||||||||||||||||||||||||||
(A) | Includes gas supply positions which are immaterial as of September 30, 2013 and December 31, 2012. Also includes long-term electric capacity positions which are immaterial as of December 31, 2012. | ||||||||||||||||||||||||||||||
(B) | Unobservable inputs for the long-term electric capacity contracts include forecasted capacity prices in the range of $100 to $400/MW day. Unobservable inputs for gas supply contracts include the weighted average cost of transporting gas in the range of $0.70 to $1 per dekatherm. | ||||||||||||||||||||||||||||||
(C) | Includes long-term electric capacity and long-term gas supply positions with various unobservable inputs. Unobservable inputs for the long-term electric capacity contracts include forecasted capacity prices in the range of $100 to $400/MW day. Significant unobservable inputs for the gas supply contracts include long-term basis prices in the range of $0 to $4/MMBTU of natural gas. | ||||||||||||||||||||||||||||||
Significant unobservable inputs listed above would have a direct impact on the fair values of the above Level 3 instruments if they were adjusted. For energy-related contracts in cases where Power is a seller, an increase in either the power basis or the load variability or the longer-term gas basis amounts would decrease the fair value. For long-term electric capacity contracts where PSE&G is a buyer, an increase in the capacity price would increase the fair value. For gas supply contracts where PSE&G is a seller, an increase in gas transportation cost would increase the fair value. | |||||||||||||||||||||||||||||||
A reconciliation of the beginning and ending balances of Level 3 derivative contracts and securities for the three months and nine months ended September 30, 2013 and 2012, respectively, follows: | |||||||||||||||||||||||||||||||
Changes in Level 3 Assets and (Liabilities) Measured at Fair Value on a Recurring Basis for the Three Months Ended September 30, 2013 | |||||||||||||||||||||||||||||||
Total Gains or (Losses) | |||||||||||||||||||||||||||||||
Realized/Unrealized | |||||||||||||||||||||||||||||||
Description | Balance as of | Included in | Included in | Purchases | Issuances/ | Transfers | Balance as of September 30, 2013 | ||||||||||||||||||||||||
1-Jul-13 | Income (A) | Regulatory Assets/ | (Sales) | Settlements | In/Out | ||||||||||||||||||||||||||
Liabilities (B) | (C) | (D) | |||||||||||||||||||||||||||||
Millions | |||||||||||||||||||||||||||||||
PSEG | |||||||||||||||||||||||||||||||
Net Derivative Assets (Liabilities) | $ | (35 | ) | $ | 1 | $ | (11 | ) | $ | — | $ | (1 | ) | $ | — | $ | (46 | ) | |||||||||||||
Power | |||||||||||||||||||||||||||||||
Net Derivative Assets (Liabilities) | $ | 6 | $ | 1 | $ | — | $ | — | $ | (1 | ) | $ | — | $ | 6 | ||||||||||||||||
PSE&G | |||||||||||||||||||||||||||||||
Net Derivative Assets (Liabilities) | $ | (41 | ) | $ | — | $ | (11 | ) | $ | — | $ | — | $ | — | $ | (52 | ) | ||||||||||||||
Changes in Level 3 Assets and (Liabilities) Measured at Fair Value on a Recurring Basis | |||||||||||||||||||||||||||||||
for the Nine Months Ended September 30, 2013 | |||||||||||||||||||||||||||||||
Total Gains or (Losses) | |||||||||||||||||||||||||||||||
Realized/Unrealized | |||||||||||||||||||||||||||||||
Description | Balance as of | Included in | Included in | Purchases | Issuances/ | Transfers | Balance as of September 30, 2013 | ||||||||||||||||||||||||
1-Jan-13 | Income (E) | Regulatory Assets/ | (Sales) | Settlements | In/Out | ||||||||||||||||||||||||||
Liabilities (B) | (C) | (D) | |||||||||||||||||||||||||||||
Millions | |||||||||||||||||||||||||||||||
PSEG | |||||||||||||||||||||||||||||||
Net Derivative Assets (Liabilities) | $ | (31 | ) | $ | (16 | ) | $ | (12 | ) | $ | — | $ | 9 | $ | 4 | $ | (46 | ) | |||||||||||||
Power | |||||||||||||||||||||||||||||||
Net Derivative Assets (Liabilities) | $ | 9 | $ | (16 | ) | $ | — | $ | — | $ | 9 | $ | 4 | $ | 6 | ||||||||||||||||
PSE&G | |||||||||||||||||||||||||||||||
Net Derivative Assets (Liabilities) | $ | (40 | ) | $ | — | $ | (12 | ) | $ | — | $ | — | $ | — | $ | (52 | ) | ||||||||||||||
Changes in Level 3 Assets and (Liabilities) Measured at Fair Value on a Recurring Basis for the Three Months Ended September 30, 2012 | |||||||||||||||||||||||||||||||
Total Gains or (Losses) | |||||||||||||||||||||||||||||||
Realized/Unrealized | |||||||||||||||||||||||||||||||
Description | Balance as of | Included in | Included in | Purchases | Issuances/ | Transfers | Balance as of September 30, 2012 | ||||||||||||||||||||||||
1-Jul-12 | Income (A) | Regulatory Assets/ | (Sales) | Settlements | In/Out | ||||||||||||||||||||||||||
Liabilities (B) | (C) | (D) | |||||||||||||||||||||||||||||
Millions | |||||||||||||||||||||||||||||||
PSEG | |||||||||||||||||||||||||||||||
Net Derivative Assets (Liabilities) | $ | (36 | ) | $ | (1 | ) | $ | 25 | $ | — | $ | (9 | ) | $ | — | $ | (21 | ) | |||||||||||||
Non-Recourse Debt | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||
Power | |||||||||||||||||||||||||||||||
Net Derivative Assets (Liabilities) | $ | 22 | $ | (1 | ) | $ | — | $ | — | $ | (9 | ) | $ | — | $ | 12 | |||||||||||||||
PSE&G | |||||||||||||||||||||||||||||||
Net Derivative Assets (Liabilities) | $ | (58 | ) | $ | — | $ | 25 | $ | — | $ | — | $ | — | $ | (33 | ) | |||||||||||||||
Changes in Level 3 Assets and (Liabilities) Measured at Fair Value on a Recurring Basis | |||||||||||||||||||||||||||||||
for the Nine Months Ended September 30, 2012 | |||||||||||||||||||||||||||||||
Total Gains or (Losses) | |||||||||||||||||||||||||||||||
Realized/Unrealized | |||||||||||||||||||||||||||||||
Description | Balance as of | Included in | Included in | Purchases | Issuances/ | Transfers | Balance as of September 30, 2012 | ||||||||||||||||||||||||
1-Jan-12 | Income (E) | Regulatory Assets/ | (Sales) | Settlements | In/Out | ||||||||||||||||||||||||||
Liabilities (B) | (C) | (D) | |||||||||||||||||||||||||||||
Millions | |||||||||||||||||||||||||||||||
PSEG | |||||||||||||||||||||||||||||||
Net Derivative Assets (Liabilities) | $ | 21 | $ | 40 | $ | (30 | ) | $ | — | $ | (52 | ) | $ | — | $ | (21 | ) | ||||||||||||||
Non-Recourse Debt | $ | (50 | ) | $ | 50 | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
Power | |||||||||||||||||||||||||||||||
Net Derivative Assets (Liabilities) | $ | 24 | $ | 40 | $ | — | $ | — | $ | (52 | ) | $ | — | $ | 12 | ||||||||||||||||
PSE&G | |||||||||||||||||||||||||||||||
Net Derivative Assets (Liabilities) | $ | (3 | ) | $ | — | $ | (30 | ) | $ | — | $ | — | $ | — | $ | (33 | ) | ||||||||||||||
(A) | PSEG’s and Power’s gains and losses attributable to changes in net derivative assets and liabilities include $1 million and $(1) million in Operating Income in 2013 and 2012, respectively. The $1 million in Operating Income in 2013 is unrealized. Of the $(1) million in Operating Income in 2012, $(10) million is unrealized. Energy Holdings' release from its obligation under the non-recourse debt is included in PSEG's Operating Income for 2012 and is offset by the write-off of the related assets. | ||||||||||||||||||||||||||||||
(B) | Mainly includes gains/losses on PSE&G’s derivative contracts that are not included in either earnings or OCI, as they are deferred as a Regulatory Asset/Liability and are expected to be recovered from/returned to PSE&G’s customers. | ||||||||||||||||||||||||||||||
(C) | Represents $(1) million and $(9) million in settlements for the three months ended September 30, 2013 and 2012. Includes $9 million and $(52) million in settlements for the nine months ended September 30, 2013 and 2012, respectively. | ||||||||||||||||||||||||||||||
(D) | During the nine months ended September 30, 2013, $4 million of net derivatives assets/liabilities were transferred from Level 3 to Level 2 due to more observable pricing for the underlying securities. The transfer was recognized as of the beginning of the first quarter (i.e. the quarter in which the transfer occurred), as per PSEG's policy. There were no transfers among levels during the three months ended September 30, 2013 and 2012 and the nine months ended September 30, 2012. | ||||||||||||||||||||||||||||||
(E) | PSEG’s and Power’s gains and losses attributable to changes in net derivative assets and liabilities include $(16) million and $40 million in Operating Income in 2013 and 2012, respectively. Of the $(16) million in Operating Income in 2013, $(7) million is unrealized. Of the $40 million in Operating Income in 2012, $(12) million is unrealized. Energy Holdings' release from its obligation under the non-recourse debt is included in PSEG's Operating Income for 2012 and is offset by the write-off of the related assets. | ||||||||||||||||||||||||||||||
As of September 30, 2013, PSEG carried $1.9 billion of net assets that are measured at fair value on a recurring basis, of which $46 million of net liabilities were measured using unobservable inputs and classified as Level 3 within the fair value hierarchy. | |||||||||||||||||||||||||||||||
As of September 30, 2012, PSEG carried $1.8 billion of net assets that are measured at fair value on a recurring basis, of which $21 million of net liabilities were measured using unobservable inputs and classified as Level 3 within the fair value hierarchy. | |||||||||||||||||||||||||||||||
Fair Value of Debt | |||||||||||||||||||||||||||||||
The estimated fair values were determined using the market quotations or values of instruments with similar terms, credit ratings, remaining maturities and redemptions as of September 30, 2013 and December 31, 2012. | |||||||||||||||||||||||||||||||
30-Sep-13 | 31-Dec-12 | ||||||||||||||||||||||||||||||
Carrying | Fair | Carrying | Fair | ||||||||||||||||||||||||||||
Amount | Value | Amount | Value | ||||||||||||||||||||||||||||
Millions | |||||||||||||||||||||||||||||||
Long-Term Debt: | |||||||||||||||||||||||||||||||
PSEG (Parent) (A) | $ | 27 | $ | 42 | $ | 38 | $ | 57 | |||||||||||||||||||||||
Power -Recourse Debt (B) | 2,041 | 2,355 | 2,340 | 2,818 | |||||||||||||||||||||||||||
PSE&G (B) | 5,841 | 6,058 | 4,795 | 5,606 | |||||||||||||||||||||||||||
Transition Funding (PSE&G) (B) | 534 | 578 | 690 | 765 | |||||||||||||||||||||||||||
Transition Funding II (PSE&G) (B) | 27 | 28 | 32 | 34 | |||||||||||||||||||||||||||
Energy Holdings: | |||||||||||||||||||||||||||||||
Project Level, Non-Recourse Debt (C) | 16 | 16 | 44 | 44 | |||||||||||||||||||||||||||
Total Long-Term Debt | $ | 8,486 | $ | 9,077 | $ | 7,939 | $ | 9,324 | |||||||||||||||||||||||
(A) | Fair value represents net offsets to debt resulting from adjustments from interest rate swaps entered into to hedge certain debt at Power. Carrying amount represents such fair value reduced by the unamortized premium resulting from a debt exchange entered into between Power and Energy Holdings. | ||||||||||||||||||||||||||||||
(B) | The debt fair valuation is based on the present value of each bond’s future cash flows. The discount rates used in the present value analysis are based on an estimate of new issue bond yields across the treasury curve. When a bond has embedded options, an interest rate model is used to reflect the impact of interest rate volatility into the analysis (primarily Level 2 measurements). | ||||||||||||||||||||||||||||||
(C) | Non-recourse project debt is valued as equivalent to the amortized cost and is classified as a Level 3 measurement. | ||||||||||||||||||||||||||||||
Power [Member] | |||||||||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements | ||||||||||||||||||||||||||||||
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Accounting guidance for fair value measurement emphasizes that fair value is a market-based measurement, not an entity-specific measurement, and establishes a fair value hierarchy that distinguishes between assumptions based on market data obtained from independent sources and those based on an entity’s own assumptions. The hierarchy prioritizes the inputs to fair value measurement into three levels: | |||||||||||||||||||||||||||||||
Level 1—measurements utilize quoted prices (unadjusted) in active markets for identical assets or liabilities that PSEG, Power and PSE&G have the ability to access. These consist primarily of listed equity securities. | |||||||||||||||||||||||||||||||
Level 2—measurements include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active and other observable inputs such as interest rates and yield curves that are observable at commonly quoted intervals. These consist primarily of non-exchange traded derivatives such as forward contracts or options and most fixed income securities. | |||||||||||||||||||||||||||||||
Level 3—measurements use unobservable inputs for assets or liabilities, based on the best information available and might include an entity’s own data and assumptions. In some valuations, the inputs used may fall into different levels of the hierarchy. In these cases, the financial instrument’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. As of September 30, 2013, these consist primarily of electric swaps whose basis is deemed significant to the fair value measurement, long-term electric load contracts, gas supply contracts and long-term capacity contracts. | |||||||||||||||||||||||||||||||
The following tables present information about PSEG’s, Power’s and PSE&G’s respective assets and (liabilities) measured at fair value on a recurring basis as of September 30, 2013 and December 31, 2012, including the fair value measurements and the levels of inputs used in determining those fair values. Amounts shown for PSEG include the amounts shown for Power and PSE&G. | |||||||||||||||||||||||||||||||
Recurring Fair Value Measurements as of September 30, 2013 | |||||||||||||||||||||||||||||||
Description | Total | Cash | Quoted Market Prices for Identical Assets | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs | ||||||||||||||||||||||||||
Collateral | (Level 1) | (Level 3) | |||||||||||||||||||||||||||||
Netting (D) | |||||||||||||||||||||||||||||||
Millions | |||||||||||||||||||||||||||||||
PSEG | |||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||
Derivative Contracts: | |||||||||||||||||||||||||||||||
Energy-Related Contracts (A) | $ | 249 | $ | (3 | ) | $ | — | $ | 156 | $ | 96 | ||||||||||||||||||||
Interest Rate Swaps (B) | $ | 42 | $ | — | $ | — | $ | 42 | $ | — | |||||||||||||||||||||
NDT Fund (C) | |||||||||||||||||||||||||||||||
Equity Securities | $ | 843 | $ | — | $ | 842 | $ | 1 | $ | — | |||||||||||||||||||||
Debt Securities—Govt Obligations | $ | 410 | $ | — | $ | — | $ | 410 | $ | — | |||||||||||||||||||||
Debt Securities—Other | $ | 320 | $ | — | $ | — | $ | 320 | $ | — | |||||||||||||||||||||
Other Securities | $ | 62 | $ | — | $ | — | $ | 62 | $ | — | |||||||||||||||||||||
Rabbi Trust (C) | |||||||||||||||||||||||||||||||
Equity Securities—Mutual Funds | $ | 21 | $ | — | $ | 21 | $ | — | $ | — | |||||||||||||||||||||
Debt Securities—Govt Obligations | $ | 108 | $ | — | $ | — | $ | 108 | $ | — | |||||||||||||||||||||
Debt Securities—Other | $ | 44 | $ | — | $ | — | $ | 44 | $ | — | |||||||||||||||||||||
Other Securities | $ | 2 | $ | — | $ | — | $ | 2 | $ | — | |||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||
Derivative Contracts: | |||||||||||||||||||||||||||||||
Energy-Related Contracts (A) | $ | (199 | ) | $ | 1 | $ | — | $ | (58 | ) | $ | (142 | ) | ||||||||||||||||||
Power | |||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||
Derivative Contracts: | |||||||||||||||||||||||||||||||
Energy-Related Contracts (A) | $ | 161 | $ | (3 | ) | $ | — | $ | 156 | $ | 8 | ||||||||||||||||||||
NDT Fund (C) | |||||||||||||||||||||||||||||||
Equity Securities | $ | 843 | $ | — | $ | 842 | $ | 1 | $ | — | |||||||||||||||||||||
Debt Securities—Govt Obligations | $ | 410 | $ | — | $ | — | $ | 410 | $ | — | |||||||||||||||||||||
Debt Securities—Other | $ | 320 | $ | — | $ | — | $ | 320 | $ | — | |||||||||||||||||||||
Other Securities | $ | 62 | $ | — | $ | — | $ | 62 | $ | — | |||||||||||||||||||||
Rabbi Trust (C) | |||||||||||||||||||||||||||||||
Equity Securities—Mutual Funds | $ | 5 | $ | — | $ | 5 | $ | — | $ | — | |||||||||||||||||||||
Debt Securities—Govt Obligations | $ | 23 | $ | — | $ | — | $ | 23 | $ | — | |||||||||||||||||||||
Debt Securities—Other | $ | 10 | $ | — | $ | — | $ | 10 | $ | — | |||||||||||||||||||||
Other Securities | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||
Derivative Contracts: | |||||||||||||||||||||||||||||||
Energy-Related Contracts (A) | $ | (59 | ) | $ | 1 | $ | — | $ | (58 | ) | $ | (2 | ) | ||||||||||||||||||
PSE&G | |||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||
Derivative Contracts: | |||||||||||||||||||||||||||||||
Energy-Related Contracts (A) | $ | 88 | $ | — | $ | — | $ | — | $ | 88 | |||||||||||||||||||||
Rabbi Trust (C) | |||||||||||||||||||||||||||||||
Equity Securities—Mutual Funds | $ | 5 | $ | — | $ | 5 | $ | — | $ | — | |||||||||||||||||||||
Debt Securities—Govt Obligations | $ | 26 | $ | — | $ | — | $ | 26 | $ | — | |||||||||||||||||||||
Debt Securities—Other | $ | 10 | $ | — | $ | — | $ | 10 | $ | — | |||||||||||||||||||||
Other Securities | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||
Derivative Contracts: | |||||||||||||||||||||||||||||||
Energy-Related Contracts (A) | $ | (140 | ) | $ | — | $ | — | $ | — | $ | (140 | ) | |||||||||||||||||||
Recurring Fair Value Measurements as of December 31, 2012 | |||||||||||||||||||||||||||||||
Description | Total | Cash | Quoted Market Prices for Identical Assets | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs | ||||||||||||||||||||||||||
Collateral | (Level 1) | (Level 3) | |||||||||||||||||||||||||||||
Netting (D) | |||||||||||||||||||||||||||||||
Millions | |||||||||||||||||||||||||||||||
PSEG | |||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||
Derivative Contracts: | |||||||||||||||||||||||||||||||
Energy-Related Contracts (A) | $ | 234 | $ | (3 | ) | $ | — | $ | 157 | $ | 80 | ||||||||||||||||||||
Interest Rate Swaps (B) | $ | 57 | $ | — | $ | — | $ | 57 | $ | — | |||||||||||||||||||||
NDT Fund (C) | |||||||||||||||||||||||||||||||
Equity Securities | $ | 789 | $ | — | $ | 789 | $ | — | $ | — | |||||||||||||||||||||
Debt Securities—Govt Obligations | $ | 285 | $ | — | $ | — | $ | 285 | $ | — | |||||||||||||||||||||
Debt Securities—Other | $ | 342 | $ | — | $ | — | $ | 342 | $ | — | |||||||||||||||||||||
Other Securities | $ | 124 | $ | — | $ | — | $ | 124 | $ | — | |||||||||||||||||||||
Rabbi Trust (C) | |||||||||||||||||||||||||||||||
Equity Securities—Mutual Funds | $ | 18 | $ | — | $ | 18 | $ | — | $ | — | |||||||||||||||||||||
Debt Securities—Govt Obligations | $ | 117 | $ | — | $ | — | $ | 117 | $ | — | |||||||||||||||||||||
Debt Securities—Other | $ | 47 | $ | — | $ | — | $ | 47 | $ | — | |||||||||||||||||||||
Other Securities | $ | 3 | $ | — | $ | — | $ | 3 | $ | — | |||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||
Derivative Contracts: | |||||||||||||||||||||||||||||||
Energy-Related Contracts (A) | $ | (168 | ) | $ | 5 | $ | — | $ | (62 | ) | $ | (111 | ) | ||||||||||||||||||
Power | |||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||
Derivative Contracts: | |||||||||||||||||||||||||||||||
Energy-Related Contracts (A) | $ | 167 | $ | (3 | ) | $ | — | $ | 157 | $ | 13 | ||||||||||||||||||||
NDT Fund (C) | |||||||||||||||||||||||||||||||
Equity Securities | $ | 789 | $ | — | $ | 789 | $ | — | $ | — | |||||||||||||||||||||
Debt Securities—Govt Obligations | $ | 285 | $ | — | $ | — | $ | 285 | $ | — | |||||||||||||||||||||
Debt Securities—Other | $ | 342 | $ | — | $ | — | $ | 342 | $ | — | |||||||||||||||||||||
Other Securities | $ | 124 | $ | — | $ | — | $ | 124 | $ | — | |||||||||||||||||||||
Rabbi Trust (C) | |||||||||||||||||||||||||||||||
Equity Securities—Mutual Funds | $ | 3 | $ | — | $ | 3 | $ | — | $ | — | |||||||||||||||||||||
Debt Securities—Govt Obligations | $ | 23 | $ | — | $ | — | $ | 23 | $ | — | |||||||||||||||||||||
Debt Securities—Other | $ | 9 | $ | — | $ | — | $ | 9 | $ | — | |||||||||||||||||||||
Other Securities | $ | 1 | $ | — | $ | — | $ | 1 | $ | — | |||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||
Derivative Contracts: | |||||||||||||||||||||||||||||||
Energy-Related Contracts (A) | $ | (61 | ) | $ | 5 | $ | — | $ | (62 | ) | $ | (4 | ) | ||||||||||||||||||
PSE&G | |||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||
Derivative Contracts: | |||||||||||||||||||||||||||||||
Energy Related Contracts (A) | $ | 67 | $ | — | $ | — | $ | — | $ | 67 | |||||||||||||||||||||
Rabbi Trust (C) | |||||||||||||||||||||||||||||||
Equity Securities—Mutual Funds | $ | 6 | $ | — | $ | 6 | $ | — | $ | — | |||||||||||||||||||||
Debt Securities—Govt Obligations | $ | 39 | $ | — | $ | — | $ | 39 | $ | — | |||||||||||||||||||||
Debt Securities—Other | $ | 15 | $ | — | $ | — | $ | 15 | $ | — | |||||||||||||||||||||
Other Securities | $ | 1 | $ | — | $ | — | $ | 1 | $ | — | |||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||
Derivative Contracts: | |||||||||||||||||||||||||||||||
Energy Related Contracts (A) | $ | (107 | ) | $ | — | $ | — | $ | — | $ | (107 | ) | |||||||||||||||||||
(A) | Level 2—Fair values for energy-related contracts are obtained primarily using a market-based approach. Most derivative contracts (forward purchase or sale contracts and swaps) are valued using the average of the bid/ask midpoints from multiple broker or dealer quotes or auction prices. Prices used in the valuation process are also corroborated independently by management to determine that values are based on actual transaction data or, in the absence of transactions, bid and offers for the day. Examples may include certain exchange and non-exchange traded capacity and electricity contracts and natural gas physical or swap contracts based on market prices, basis adjustments and other premiums where adjustments and premiums are not considered significant to the overall inputs. | ||||||||||||||||||||||||||||||
Level 3—For energy-related contracts, which include more complex agreements where limited observable inputs or pricing information are available, modeling techniques are employed using assumptions reflective of contractual terms, current market rates, forward price curves, discount rates and risk factors, as applicable. Fair values of other energy contracts may be based on broker quotes that we cannot corroborate with actual market transaction data. | |||||||||||||||||||||||||||||||
(B) | Interest rate swaps are valued using quoted prices on commonly quoted intervals, which are interpolated for periods different than the quoted intervals, as inputs to a market valuation model. Market inputs can generally be verified and model selection does not involve significant management judgment. | ||||||||||||||||||||||||||||||
(C) | The NDT Fund maintains investments in various equity and fixed income securities classified as “available for sale.” The Rabbi Trust maintains investments in an S&P 500 index fund and various fixed income securities classified as “available for sale.” 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). | ||||||||||||||||||||||||||||||
Level 1—Investments in marketable equity securities within the NDT Fund are primarily investments in common stocks across a broad range of industries and sectors. Most equity securities are priced utilizing the principal market close price or, in some cases, midpoint, bid or ask price (primarily Level 1). The Rabbi Trust equity index fund is valued based on quoted prices in an active market (Level 1). | |||||||||||||||||||||||||||||||
Level 2—NDT and Rabbi Trust fixed income securities are limited to investment grade corporate bonds and United States Treasury obligations or Federal Agency asset-backed securities with a wide range of maturities. Since many fixed income securities do not trade on a daily basis, they are priced using an evaluated pricing methodology 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 (primarily Level 2). Short-term investments and certain commingled temporary investments are valued using observable market prices or market parameters such as time-to-maturity, coupon rate, quality rating and current yield (primarily Level 2). | |||||||||||||||||||||||||||||||
(D) | Cash collateral netting represents collateral amounts netted against derivative assets and liabilities as permitted under the accounting guidance for Offsetting of Amounts Related to Certain Contracts. | ||||||||||||||||||||||||||||||
Additional Information Regarding Level 3 Measurements | |||||||||||||||||||||||||||||||
For valuations that include both observable and unobservable inputs, if the unobservable input is determined to be significant to the overall inputs, the entire valuation is categorized in Level 3. This includes derivatives valued using indicative price quotations for contracts with tenors that extend into periods with no observable pricing. In instances where observable data is unavailable, consideration is given to the assumptions that market participants would use in valuing the asset or liability. This includes assumptions about market risks such as liquidity, volatility and contract duration. Such instruments are categorized in Level 3 because the model inputs generally are not observable. PSEG’s Risk Management Committee approves risk management policies and objectives for risk assessment, control and valuation, counterparty credit approval, and the monitoring and reporting of risk exposures. The Risk Management Committee reports to the Audit Committee of the PSEG Board of Directors on the scope of the risk management activities and is responsible for approving all valuation procedures at PSEG. Forward price curves for the power market utilized by Power to manage the portfolio are maintained and reviewed by PSEG’s Enterprise Risk Management market pricing group, and used for financial reporting purposes. PSEG considers credit and nonperformance risk in the valuation of derivative contracts categorized in Levels 2 and 3, including both historical and current market data, in its assessment of credit and nonperformance risk by counterparty. The impacts of credit and nonperformance risk were not material to the financial statements. | |||||||||||||||||||||||||||||||
For Power, in general, electric swaps are measured at fair value based on at least two pricing inputs, the underlying price of electricity at a liquid reference point and the basis difference between electricity prices at the liquid reference point and electricity prices at the respective delivery locations. To the extent the basis component is based on a single broker quote and is significant to the fair value of the electric swap, it is categorized as Level 3. The fair value of Power's electric load contracts in which load consumption may change hourly based on demand are measured using certain unobservable inputs, such as historic load variability and, accordingly, are categorized as Level 3. For Power, long-term electric capacity contracts are measured using capacity auction prices. If the fair value for the unobservable tenor is significant, then the entire capacity contract is categorized as Level 3. For Power and PSE&G, natural gas supply contracts are measured at fair value using modeling techniques taking into account the current price of natural gas adjusted for appropriate risk factors as applicable, and internal assumptions about transportation costs, and accordingly, the fair value measurements are classified in Level 3. For PSE&G, long-term electric capacity contracts are measured at fair value using both observable capacity auction prices and unobservable future long-term capacity prices. The measurement of these contracts include adjustments for contingencies, such as the potential outcome of litigation specifically related to the contract and the risk related to the construction of the specified capacity facilities. Accordingly, the fair value measurements are classified as Level 3. The following tables provide details surrounding significant Level 3 valuations as of September 30, 2013 and December 31, 2012. | |||||||||||||||||||||||||||||||
Quantitative Information About Level 3 Fair Value Measurements | |||||||||||||||||||||||||||||||
Significant | |||||||||||||||||||||||||||||||
Fair Value as of | Valuation | Unobservable | |||||||||||||||||||||||||||||
Commodity | Level 3 Position | 30-Sep-13 | Technique(s) | Input | Range | ||||||||||||||||||||||||||
Assets | (Liabilities) | ||||||||||||||||||||||||||||||
Millions | |||||||||||||||||||||||||||||||
Power | |||||||||||||||||||||||||||||||
Electricity | Electric Swaps | $ | 7 | $ | — | Discounted Cash Flow | Power Basis | $0 to $10/MWh | |||||||||||||||||||||||
Electricity | Electric Load Contracts | — | (2 | ) | Discounted Cash Flow | Historic Load Variability | -5% to +10% | ||||||||||||||||||||||||
Other | Various (A) | 1 | — | ||||||||||||||||||||||||||||
Total Power | $ | 8 | $ | (2 | ) | ||||||||||||||||||||||||||
PSE&G | |||||||||||||||||||||||||||||||
Gas and Capacity | Forward Contracts (B) | $ | 88 | $ | (140 | ) | Discounted Cash Flow | Long-Term Capacity Prices and Transportation Costs | (B) | ||||||||||||||||||||||
Total PSE&G | $ | 88 | $ | (140 | ) | ||||||||||||||||||||||||||
TOTAL PSEG | $ | 96 | $ | (142 | ) | ||||||||||||||||||||||||||
Quantitative Information About Level 3 Fair Value Measurements | |||||||||||||||||||||||||||||||
Commodity | Level 3 Position | Fair Value as of December 31, 2012 | Valuation | Significant | Range | ||||||||||||||||||||||||||
Technique(s) | Unobservable Input | ||||||||||||||||||||||||||||||
Assets | (Liabilities) | ||||||||||||||||||||||||||||||
Millions | |||||||||||||||||||||||||||||||
Power | |||||||||||||||||||||||||||||||
Electricity | Electric Swaps | $ | 7 | $ | (1 | ) | Discounted Cash Flow | Power Basis | $0 to $10/MWh | ||||||||||||||||||||||
Electricity | Electric Load Contracts | 1 | (2 | ) | Discounted Cash Flow | Historic Load Variability | -5% to +10% | ||||||||||||||||||||||||
Other | Various (A) | 5 | (1 | ) | |||||||||||||||||||||||||||
Total Power | $ | 13 | $ | (4 | ) | ||||||||||||||||||||||||||
PSE&G | |||||||||||||||||||||||||||||||
Gas and Capacity | Forward Contracts (C) | $ | 67 | $ | (107 | ) | Discounted Cash Flow | Long-Term Gas Basis and Capacity Prices | (C) | ||||||||||||||||||||||
Total PSE&G | $ | 67 | $ | (107 | ) | ||||||||||||||||||||||||||
TOTAL PSEG | $ | 80 | $ | (111 | ) | ||||||||||||||||||||||||||
(A) | Includes gas supply positions which are immaterial as of September 30, 2013 and December 31, 2012. Also includes long-term electric capacity positions which are immaterial as of December 31, 2012. | ||||||||||||||||||||||||||||||
(B) | Unobservable inputs for the long-term electric capacity contracts include forecasted capacity prices in the range of $100 to $400/MW day. Unobservable inputs for gas supply contracts include the weighted average cost of transporting gas in the range of $0.70 to $1 per dekatherm. | ||||||||||||||||||||||||||||||
(C) | Includes long-term electric capacity and long-term gas supply positions with various unobservable inputs. Unobservable inputs for the long-term electric capacity contracts include forecasted capacity prices in the range of $100 to $400/MW day. Significant unobservable inputs for the gas supply contracts include long-term basis prices in the range of $0 to $4/MMBTU of natural gas. | ||||||||||||||||||||||||||||||
Significant unobservable inputs listed above would have a direct impact on the fair values of the above Level 3 instruments if they were adjusted. For energy-related contracts in cases where Power is a seller, an increase in either the power basis or the load variability or the longer-term gas basis amounts would decrease the fair value. For long-term electric capacity contracts where PSE&G is a buyer, an increase in the capacity price would increase the fair value. For gas supply contracts where PSE&G is a seller, an increase in gas transportation cost would increase the fair value. | |||||||||||||||||||||||||||||||
A reconciliation of the beginning and ending balances of Level 3 derivative contracts and securities for the three months and nine months ended September 30, 2013 and 2012, respectively, follows: | |||||||||||||||||||||||||||||||
Changes in Level 3 Assets and (Liabilities) Measured at Fair Value on a Recurring Basis for the Three Months Ended September 30, 2013 | |||||||||||||||||||||||||||||||
Total Gains or (Losses) | |||||||||||||||||||||||||||||||
Realized/Unrealized | |||||||||||||||||||||||||||||||
Description | Balance as of | Included in | Included in | Purchases | Issuances/ | Transfers | Balance as of September 30, 2013 | ||||||||||||||||||||||||
1-Jul-13 | Income (A) | Regulatory Assets/ | (Sales) | Settlements | In/Out | ||||||||||||||||||||||||||
Liabilities (B) | (C) | (D) | |||||||||||||||||||||||||||||
Millions | |||||||||||||||||||||||||||||||
PSEG | |||||||||||||||||||||||||||||||
Net Derivative Assets (Liabilities) | $ | (35 | ) | $ | 1 | $ | (11 | ) | $ | — | $ | (1 | ) | $ | — | $ | (46 | ) | |||||||||||||
Power | |||||||||||||||||||||||||||||||
Net Derivative Assets (Liabilities) | $ | 6 | $ | 1 | $ | — | $ | — | $ | (1 | ) | $ | — | $ | 6 | ||||||||||||||||
PSE&G | |||||||||||||||||||||||||||||||
Net Derivative Assets (Liabilities) | $ | (41 | ) | $ | — | $ | (11 | ) | $ | — | $ | — | $ | — | $ | (52 | ) | ||||||||||||||
Changes in Level 3 Assets and (Liabilities) Measured at Fair Value on a Recurring Basis | |||||||||||||||||||||||||||||||
for the Nine Months Ended September 30, 2013 | |||||||||||||||||||||||||||||||
Total Gains or (Losses) | |||||||||||||||||||||||||||||||
Realized/Unrealized | |||||||||||||||||||||||||||||||
Description | Balance as of | Included in | Included in | Purchases | Issuances/ | Transfers | Balance as of September 30, 2013 | ||||||||||||||||||||||||
1-Jan-13 | Income (E) | Regulatory Assets/ | (Sales) | Settlements | In/Out | ||||||||||||||||||||||||||
Liabilities (B) | (C) | (D) | |||||||||||||||||||||||||||||
Millions | |||||||||||||||||||||||||||||||
PSEG | |||||||||||||||||||||||||||||||
Net Derivative Assets (Liabilities) | $ | (31 | ) | $ | (16 | ) | $ | (12 | ) | $ | — | $ | 9 | $ | 4 | $ | (46 | ) | |||||||||||||
Power | |||||||||||||||||||||||||||||||
Net Derivative Assets (Liabilities) | $ | 9 | $ | (16 | ) | $ | — | $ | — | $ | 9 | $ | 4 | $ | 6 | ||||||||||||||||
PSE&G | |||||||||||||||||||||||||||||||
Net Derivative Assets (Liabilities) | $ | (40 | ) | $ | — | $ | (12 | ) | $ | — | $ | — | $ | — | $ | (52 | ) | ||||||||||||||
Changes in Level 3 Assets and (Liabilities) Measured at Fair Value on a Recurring Basis for the Three Months Ended September 30, 2012 | |||||||||||||||||||||||||||||||
Total Gains or (Losses) | |||||||||||||||||||||||||||||||
Realized/Unrealized | |||||||||||||||||||||||||||||||
Description | Balance as of | Included in | Included in | Purchases | Issuances/ | Transfers | Balance as of September 30, 2012 | ||||||||||||||||||||||||
1-Jul-12 | Income (A) | Regulatory Assets/ | (Sales) | Settlements | In/Out | ||||||||||||||||||||||||||
Liabilities (B) | (C) | (D) | |||||||||||||||||||||||||||||
Millions | |||||||||||||||||||||||||||||||
PSEG | |||||||||||||||||||||||||||||||
Net Derivative Assets (Liabilities) | $ | (36 | ) | $ | (1 | ) | $ | 25 | $ | — | $ | (9 | ) | $ | — | $ | (21 | ) | |||||||||||||
Non-Recourse Debt | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||
Power | |||||||||||||||||||||||||||||||
Net Derivative Assets (Liabilities) | $ | 22 | $ | (1 | ) | $ | — | $ | — | $ | (9 | ) | $ | — | $ | 12 | |||||||||||||||
PSE&G | |||||||||||||||||||||||||||||||
Net Derivative Assets (Liabilities) | $ | (58 | ) | $ | — | $ | 25 | $ | — | $ | — | $ | — | $ | (33 | ) | |||||||||||||||
Changes in Level 3 Assets and (Liabilities) Measured at Fair Value on a Recurring Basis | |||||||||||||||||||||||||||||||
for the Nine Months Ended September 30, 2012 | |||||||||||||||||||||||||||||||
Total Gains or (Losses) | |||||||||||||||||||||||||||||||
Realized/Unrealized | |||||||||||||||||||||||||||||||
Description | Balance as of | Included in | Included in | Purchases | Issuances/ | Transfers | Balance as of September 30, 2012 | ||||||||||||||||||||||||
1-Jan-12 | Income (E) | Regulatory Assets/ | (Sales) | Settlements | In/Out | ||||||||||||||||||||||||||
Liabilities (B) | (C) | (D) | |||||||||||||||||||||||||||||
Millions | |||||||||||||||||||||||||||||||
PSEG | |||||||||||||||||||||||||||||||
Net Derivative Assets (Liabilities) | $ | 21 | $ | 40 | $ | (30 | ) | $ | — | $ | (52 | ) | $ | — | $ | (21 | ) | ||||||||||||||
Non-Recourse Debt | $ | (50 | ) | $ | 50 | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
Power | |||||||||||||||||||||||||||||||
Net Derivative Assets (Liabilities) | $ | 24 | $ | 40 | $ | — | $ | — | $ | (52 | ) | $ | — | $ | 12 | ||||||||||||||||
PSE&G | |||||||||||||||||||||||||||||||
Net Derivative Assets (Liabilities) | $ | (3 | ) | $ | — | $ | (30 | ) | $ | — | $ | — | $ | — | $ | (33 | ) | ||||||||||||||
(A) | PSEG’s and Power’s gains and losses attributable to changes in net derivative assets and liabilities include $1 million and $(1) million in Operating Income in 2013 and 2012, respectively. The $1 million in Operating Income in 2013 is unrealized. Of the $(1) million in Operating Income in 2012, $(10) million is unrealized. Energy Holdings' release from its obligation under the non-recourse debt is included in PSEG's Operating Income for 2012 and is offset by the write-off of the related assets. | ||||||||||||||||||||||||||||||
(B) | Mainly includes gains/losses on PSE&G’s derivative contracts that are not included in either earnings or OCI, as they are deferred as a Regulatory Asset/Liability and are expected to be recovered from/returned to PSE&G’s customers. | ||||||||||||||||||||||||||||||
(C) | Represents $(1) million and $(9) million in settlements for the three months ended September 30, 2013 and 2012. Includes $9 million and $(52) million in settlements for the nine months ended September 30, 2013 and 2012, respectively. | ||||||||||||||||||||||||||||||
(D) | During the nine months ended September 30, 2013, $4 million of net derivatives assets/liabilities were transferred from Level 3 to Level 2 due to more observable pricing for the underlying securities. The transfer was recognized as of the beginning of the first quarter (i.e. the quarter in which the transfer occurred), as per PSEG's policy. There were no transfers among levels during the three months ended September 30, 2013 and 2012 and the nine months ended September 30, 2012. | ||||||||||||||||||||||||||||||
(E) | PSEG’s and Power’s gains and losses attributable to changes in net derivative assets and liabilities include $(16) million and $40 million in Operating Income in 2013 and 2012, respectively. Of the $(16) million in Operating Income in 2013, $(7) million is unrealized. Of the $40 million in Operating Income in 2012, $(12) million is unrealized. Energy Holdings' release from its obligation under the non-recourse debt is included in PSEG's Operating Income for 2012 and is offset by the write-off of the related assets. | ||||||||||||||||||||||||||||||
As of September 30, 2013, PSEG carried $1.9 billion of net assets that are measured at fair value on a recurring basis, of which $46 million of net liabilities were measured using unobservable inputs and classified as Level 3 within the fair value hierarchy. | |||||||||||||||||||||||||||||||
As of September 30, 2012, PSEG carried $1.8 billion of net assets that are measured at fair value on a recurring basis, of which $21 million of net liabilities were measured using unobservable inputs and classified as Level 3 within the fair value hierarchy. | |||||||||||||||||||||||||||||||
Fair Value of Debt | |||||||||||||||||||||||||||||||
The estimated fair values were determined using the market quotations or values of instruments with similar terms, credit ratings, remaining maturities and redemptions as of September 30, 2013 and December 31, 2012. | |||||||||||||||||||||||||||||||
30-Sep-13 | 31-Dec-12 | ||||||||||||||||||||||||||||||
Carrying | Fair | Carrying | Fair | ||||||||||||||||||||||||||||
Amount | Value | Amount | Value | ||||||||||||||||||||||||||||
Millions | |||||||||||||||||||||||||||||||
Long-Term Debt: | |||||||||||||||||||||||||||||||
PSEG (Parent) (A) | $ | 27 | $ | 42 | $ | 38 | $ | 57 | |||||||||||||||||||||||
Power -Recourse Debt (B) | 2,041 | 2,355 | 2,340 | 2,818 | |||||||||||||||||||||||||||
PSE&G (B) | 5,841 | 6,058 | 4,795 | 5,606 | |||||||||||||||||||||||||||
Transition Funding (PSE&G) (B) | 534 | 578 | 690 | 765 | |||||||||||||||||||||||||||
Transition Funding II (PSE&G) (B) | 27 | 28 | 32 | 34 | |||||||||||||||||||||||||||
Energy Holdings: | |||||||||||||||||||||||||||||||
Project Level, Non-Recourse Debt (C) | 16 | 16 | 44 | 44 | |||||||||||||||||||||||||||
Total Long-Term Debt | $ | 8,486 | $ | 9,077 | $ | 7,939 | $ | 9,324 | |||||||||||||||||||||||
(A) | Fair value represents net offsets to debt resulting from adjustments from interest rate swaps entered into to hedge certain debt at Power. Carrying amount represents such fair value reduced by the unamortized premium resulting from a debt exchange entered into between Power and Energy Holdings. | ||||||||||||||||||||||||||||||
(B) | The debt fair valuation is based on the present value of each bond’s future cash flows. The discount rates used in the present value analysis are based on an estimate of new issue bond yields across the treasury curve. When a bond has embedded options, an interest rate model is used to reflect the impact of interest rate volatility into the analysis (primarily Level 2 measurements). | ||||||||||||||||||||||||||||||
(C) | Non-recourse project debt is valued as equivalent to the amortized cost and is classified as a Level 3 measurement. | ||||||||||||||||||||||||||||||
PSE And G [Member] | |||||||||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements | ||||||||||||||||||||||||||||||
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Accounting guidance for fair value measurement emphasizes that fair value is a market-based measurement, not an entity-specific measurement, and establishes a fair value hierarchy that distinguishes between assumptions based on market data obtained from independent sources and those based on an entity’s own assumptions. The hierarchy prioritizes the inputs to fair value measurement into three levels: | |||||||||||||||||||||||||||||||
Level 1—measurements utilize quoted prices (unadjusted) in active markets for identical assets or liabilities that PSEG, Power and PSE&G have the ability to access. These consist primarily of listed equity securities. | |||||||||||||||||||||||||||||||
Level 2—measurements include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active and other observable inputs such as interest rates and yield curves that are observable at commonly quoted intervals. These consist primarily of non-exchange traded derivatives such as forward contracts or options and most fixed income securities. | |||||||||||||||||||||||||||||||
Level 3—measurements use unobservable inputs for assets or liabilities, based on the best information available and might include an entity’s own data and assumptions. In some valuations, the inputs used may fall into different levels of the hierarchy. In these cases, the financial instrument’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. As of September 30, 2013, these consist primarily of electric swaps whose basis is deemed significant to the fair value measurement, long-term electric load contracts, gas supply contracts and long-term capacity contracts. | |||||||||||||||||||||||||||||||
The following tables present information about PSEG’s, Power’s and PSE&G’s respective assets and (liabilities) measured at fair value on a recurring basis as of September 30, 2013 and December 31, 2012, including the fair value measurements and the levels of inputs used in determining those fair values. Amounts shown for PSEG include the amounts shown for Power and PSE&G. | |||||||||||||||||||||||||||||||
Recurring Fair Value Measurements as of September 30, 2013 | |||||||||||||||||||||||||||||||
Description | Total | Cash | Quoted Market Prices for Identical Assets | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs | ||||||||||||||||||||||||||
Collateral | (Level 1) | (Level 3) | |||||||||||||||||||||||||||||
Netting (D) | |||||||||||||||||||||||||||||||
Millions | |||||||||||||||||||||||||||||||
PSEG | |||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||
Derivative Contracts: | |||||||||||||||||||||||||||||||
Energy-Related Contracts (A) | $ | 249 | $ | (3 | ) | $ | — | $ | 156 | $ | 96 | ||||||||||||||||||||
Interest Rate Swaps (B) | $ | 42 | $ | — | $ | — | $ | 42 | $ | — | |||||||||||||||||||||
NDT Fund (C) | |||||||||||||||||||||||||||||||
Equity Securities | $ | 843 | $ | — | $ | 842 | $ | 1 | $ | — | |||||||||||||||||||||
Debt Securities—Govt Obligations | $ | 410 | $ | — | $ | — | $ | 410 | $ | — | |||||||||||||||||||||
Debt Securities—Other | $ | 320 | $ | — | $ | — | $ | 320 | $ | — | |||||||||||||||||||||
Other Securities | $ | 62 | $ | — | $ | — | $ | 62 | $ | — | |||||||||||||||||||||
Rabbi Trust (C) | |||||||||||||||||||||||||||||||
Equity Securities—Mutual Funds | $ | 21 | $ | — | $ | 21 | $ | — | $ | — | |||||||||||||||||||||
Debt Securities—Govt Obligations | $ | 108 | $ | — | $ | — | $ | 108 | $ | — | |||||||||||||||||||||
Debt Securities—Other | $ | 44 | $ | — | $ | — | $ | 44 | $ | — | |||||||||||||||||||||
Other Securities | $ | 2 | $ | — | $ | — | $ | 2 | $ | — | |||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||
Derivative Contracts: | |||||||||||||||||||||||||||||||
Energy-Related Contracts (A) | $ | (199 | ) | $ | 1 | $ | — | $ | (58 | ) | $ | (142 | ) | ||||||||||||||||||
Power | |||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||
Derivative Contracts: | |||||||||||||||||||||||||||||||
Energy-Related Contracts (A) | $ | 161 | $ | (3 | ) | $ | — | $ | 156 | $ | 8 | ||||||||||||||||||||
NDT Fund (C) | |||||||||||||||||||||||||||||||
Equity Securities | $ | 843 | $ | — | $ | 842 | $ | 1 | $ | — | |||||||||||||||||||||
Debt Securities—Govt Obligations | $ | 410 | $ | — | $ | — | $ | 410 | $ | — | |||||||||||||||||||||
Debt Securities—Other | $ | 320 | $ | — | $ | — | $ | 320 | $ | — | |||||||||||||||||||||
Other Securities | $ | 62 | $ | — | $ | — | $ | 62 | $ | — | |||||||||||||||||||||
Rabbi Trust (C) | |||||||||||||||||||||||||||||||
Equity Securities—Mutual Funds | $ | 5 | $ | — | $ | 5 | $ | — | $ | — | |||||||||||||||||||||
Debt Securities—Govt Obligations | $ | 23 | $ | — | $ | — | $ | 23 | $ | — | |||||||||||||||||||||
Debt Securities—Other | $ | 10 | $ | — | $ | — | $ | 10 | $ | — | |||||||||||||||||||||
Other Securities | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||
Derivative Contracts: | |||||||||||||||||||||||||||||||
Energy-Related Contracts (A) | $ | (59 | ) | $ | 1 | $ | — | $ | (58 | ) | $ | (2 | ) | ||||||||||||||||||
PSE&G | |||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||
Derivative Contracts: | |||||||||||||||||||||||||||||||
Energy-Related Contracts (A) | $ | 88 | $ | — | $ | — | $ | — | $ | 88 | |||||||||||||||||||||
Rabbi Trust (C) | |||||||||||||||||||||||||||||||
Equity Securities—Mutual Funds | $ | 5 | $ | — | $ | 5 | $ | — | $ | — | |||||||||||||||||||||
Debt Securities—Govt Obligations | $ | 26 | $ | — | $ | — | $ | 26 | $ | — | |||||||||||||||||||||
Debt Securities—Other | $ | 10 | $ | — | $ | — | $ | 10 | $ | — | |||||||||||||||||||||
Other Securities | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||
Derivative Contracts: | |||||||||||||||||||||||||||||||
Energy-Related Contracts (A) | $ | (140 | ) | $ | — | $ | — | $ | — | $ | (140 | ) | |||||||||||||||||||
Recurring Fair Value Measurements as of December 31, 2012 | |||||||||||||||||||||||||||||||
Description | Total | Cash | Quoted Market Prices for Identical Assets | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs | ||||||||||||||||||||||||||
Collateral | (Level 1) | (Level 3) | |||||||||||||||||||||||||||||
Netting (D) | |||||||||||||||||||||||||||||||
Millions | |||||||||||||||||||||||||||||||
PSEG | |||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||
Derivative Contracts: | |||||||||||||||||||||||||||||||
Energy-Related Contracts (A) | $ | 234 | $ | (3 | ) | $ | — | $ | 157 | $ | 80 | ||||||||||||||||||||
Interest Rate Swaps (B) | $ | 57 | $ | — | $ | — | $ | 57 | $ | — | |||||||||||||||||||||
NDT Fund (C) | |||||||||||||||||||||||||||||||
Equity Securities | $ | 789 | $ | — | $ | 789 | $ | — | $ | — | |||||||||||||||||||||
Debt Securities—Govt Obligations | $ | 285 | $ | — | $ | — | $ | 285 | $ | — | |||||||||||||||||||||
Debt Securities—Other | $ | 342 | $ | — | $ | — | $ | 342 | $ | — | |||||||||||||||||||||
Other Securities | $ | 124 | $ | — | $ | — | $ | 124 | $ | — | |||||||||||||||||||||
Rabbi Trust (C) | |||||||||||||||||||||||||||||||
Equity Securities—Mutual Funds | $ | 18 | $ | — | $ | 18 | $ | — | $ | — | |||||||||||||||||||||
Debt Securities—Govt Obligations | $ | 117 | $ | — | $ | — | $ | 117 | $ | — | |||||||||||||||||||||
Debt Securities—Other | $ | 47 | $ | — | $ | — | $ | 47 | $ | — | |||||||||||||||||||||
Other Securities | $ | 3 | $ | — | $ | — | $ | 3 | $ | — | |||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||
Derivative Contracts: | |||||||||||||||||||||||||||||||
Energy-Related Contracts (A) | $ | (168 | ) | $ | 5 | $ | — | $ | (62 | ) | $ | (111 | ) | ||||||||||||||||||
Power | |||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||
Derivative Contracts: | |||||||||||||||||||||||||||||||
Energy-Related Contracts (A) | $ | 167 | $ | (3 | ) | $ | — | $ | 157 | $ | 13 | ||||||||||||||||||||
NDT Fund (C) | |||||||||||||||||||||||||||||||
Equity Securities | $ | 789 | $ | — | $ | 789 | $ | — | $ | — | |||||||||||||||||||||
Debt Securities—Govt Obligations | $ | 285 | $ | — | $ | — | $ | 285 | $ | — | |||||||||||||||||||||
Debt Securities—Other | $ | 342 | $ | — | $ | — | $ | 342 | $ | — | |||||||||||||||||||||
Other Securities | $ | 124 | $ | — | $ | — | $ | 124 | $ | — | |||||||||||||||||||||
Rabbi Trust (C) | |||||||||||||||||||||||||||||||
Equity Securities—Mutual Funds | $ | 3 | $ | — | $ | 3 | $ | — | $ | — | |||||||||||||||||||||
Debt Securities—Govt Obligations | $ | 23 | $ | — | $ | — | $ | 23 | $ | — | |||||||||||||||||||||
Debt Securities—Other | $ | 9 | $ | — | $ | — | $ | 9 | $ | — | |||||||||||||||||||||
Other Securities | $ | 1 | $ | — | $ | — | $ | 1 | $ | — | |||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||
Derivative Contracts: | |||||||||||||||||||||||||||||||
Energy-Related Contracts (A) | $ | (61 | ) | $ | 5 | $ | — | $ | (62 | ) | $ | (4 | ) | ||||||||||||||||||
PSE&G | |||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||
Derivative Contracts: | |||||||||||||||||||||||||||||||
Energy Related Contracts (A) | $ | 67 | $ | — | $ | — | $ | — | $ | 67 | |||||||||||||||||||||
Rabbi Trust (C) | |||||||||||||||||||||||||||||||
Equity Securities—Mutual Funds | $ | 6 | $ | — | $ | 6 | $ | — | $ | — | |||||||||||||||||||||
Debt Securities—Govt Obligations | $ | 39 | $ | — | $ | — | $ | 39 | $ | — | |||||||||||||||||||||
Debt Securities—Other | $ | 15 | $ | — | $ | — | $ | 15 | $ | — | |||||||||||||||||||||
Other Securities | $ | 1 | $ | — | $ | — | $ | 1 | $ | — | |||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||
Derivative Contracts: | |||||||||||||||||||||||||||||||
Energy Related Contracts (A) | $ | (107 | ) | $ | — | $ | — | $ | — | $ | (107 | ) | |||||||||||||||||||
(A) | Level 2—Fair values for energy-related contracts are obtained primarily using a market-based approach. Most derivative contracts (forward purchase or sale contracts and swaps) are valued using the average of the bid/ask midpoints from multiple broker or dealer quotes or auction prices. Prices used in the valuation process are also corroborated independently by management to determine that values are based on actual transaction data or, in the absence of transactions, bid and offers for the day. Examples may include certain exchange and non-exchange traded capacity and electricity contracts and natural gas physical or swap contracts based on market prices, basis adjustments and other premiums where adjustments and premiums are not considered significant to the overall inputs. | ||||||||||||||||||||||||||||||
Level 3—For energy-related contracts, which include more complex agreements where limited observable inputs or pricing information are available, modeling techniques are employed using assumptions reflective of contractual terms, current market rates, forward price curves, discount rates and risk factors, as applicable. Fair values of other energy contracts may be based on broker quotes that we cannot corroborate with actual market transaction data. | |||||||||||||||||||||||||||||||
(B) | Interest rate swaps are valued using quoted prices on commonly quoted intervals, which are interpolated for periods different than the quoted intervals, as inputs to a market valuation model. Market inputs can generally be verified and model selection does not involve significant management judgment. | ||||||||||||||||||||||||||||||
(C) | The NDT Fund maintains investments in various equity and fixed income securities classified as “available for sale.” The Rabbi Trust maintains investments in an S&P 500 index fund and various fixed income securities classified as “available for sale.” 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). | ||||||||||||||||||||||||||||||
Level 1—Investments in marketable equity securities within the NDT Fund are primarily investments in common stocks across a broad range of industries and sectors. Most equity securities are priced utilizing the principal market close price or, in some cases, midpoint, bid or ask price (primarily Level 1). The Rabbi Trust equity index fund is valued based on quoted prices in an active market (Level 1). | |||||||||||||||||||||||||||||||
Level 2—NDT and Rabbi Trust fixed income securities are limited to investment grade corporate bonds and United States Treasury obligations or Federal Agency asset-backed securities with a wide range of maturities. Since many fixed income securities do not trade on a daily basis, they are priced using an evaluated pricing methodology 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 (primarily Level 2). Short-term investments and certain commingled temporary investments are valued using observable market prices or market parameters such as time-to-maturity, coupon rate, quality rating and current yield (primarily Level 2). | |||||||||||||||||||||||||||||||
(D) | Cash collateral netting represents collateral amounts netted against derivative assets and liabilities as permitted under the accounting guidance for Offsetting of Amounts Related to Certain Contracts. | ||||||||||||||||||||||||||||||
Additional Information Regarding Level 3 Measurements | |||||||||||||||||||||||||||||||
For valuations that include both observable and unobservable inputs, if the unobservable input is determined to be significant to the overall inputs, the entire valuation is categorized in Level 3. This includes derivatives valued using indicative price quotations for contracts with tenors that extend into periods with no observable pricing. In instances where observable data is unavailable, consideration is given to the assumptions that market participants would use in valuing the asset or liability. This includes assumptions about market risks such as liquidity, volatility and contract duration. Such instruments are categorized in Level 3 because the model inputs generally are not observable. PSEG’s Risk Management Committee approves risk management policies and objectives for risk assessment, control and valuation, counterparty credit approval, and the monitoring and reporting of risk exposures. The Risk Management Committee reports to the Audit Committee of the PSEG Board of Directors on the scope of the risk management activities and is responsible for approving all valuation procedures at PSEG. Forward price curves for the power market utilized by Power to manage the portfolio are maintained and reviewed by PSEG’s Enterprise Risk Management market pricing group, and used for financial reporting purposes. PSEG considers credit and nonperformance risk in the valuation of derivative contracts categorized in Levels 2 and 3, including both historical and current market data, in its assessment of credit and nonperformance risk by counterparty. The impacts of credit and nonperformance risk were not material to the financial statements. | |||||||||||||||||||||||||||||||
For Power, in general, electric swaps are measured at fair value based on at least two pricing inputs, the underlying price of electricity at a liquid reference point and the basis difference between electricity prices at the liquid reference point and electricity prices at the respective delivery locations. To the extent the basis component is based on a single broker quote and is significant to the fair value of the electric swap, it is categorized as Level 3. The fair value of Power's electric load contracts in which load consumption may change hourly based on demand are measured using certain unobservable inputs, such as historic load variability and, accordingly, are categorized as Level 3. For Power, long-term electric capacity contracts are measured using capacity auction prices. If the fair value for the unobservable tenor is significant, then the entire capacity contract is categorized as Level 3. For Power and PSE&G, natural gas supply contracts are measured at fair value using modeling techniques taking into account the current price of natural gas adjusted for appropriate risk factors as applicable, and internal assumptions about transportation costs, and accordingly, the fair value measurements are classified in Level 3. For PSE&G, long-term electric capacity contracts are measured at fair value using both observable capacity auction prices and unobservable future long-term capacity prices. The measurement of these contracts include adjustments for contingencies, such as the potential outcome of litigation specifically related to the contract and the risk related to the construction of the specified capacity facilities. Accordingly, the fair value measurements are classified as Level 3. The following tables provide details surrounding significant Level 3 valuations as of September 30, 2013 and December 31, 2012. | |||||||||||||||||||||||||||||||
Quantitative Information About Level 3 Fair Value Measurements | |||||||||||||||||||||||||||||||
Significant | |||||||||||||||||||||||||||||||
Fair Value as of | Valuation | Unobservable | |||||||||||||||||||||||||||||
Commodity | Level 3 Position | 30-Sep-13 | Technique(s) | Input | Range | ||||||||||||||||||||||||||
Assets | (Liabilities) | ||||||||||||||||||||||||||||||
Millions | |||||||||||||||||||||||||||||||
Power | |||||||||||||||||||||||||||||||
Electricity | Electric Swaps | $ | 7 | $ | — | Discounted Cash Flow | Power Basis | $0 to $10/MWh | |||||||||||||||||||||||
Electricity | Electric Load Contracts | — | (2 | ) | Discounted Cash Flow | Historic Load Variability | -5% to +10% | ||||||||||||||||||||||||
Other | Various (A) | 1 | — | ||||||||||||||||||||||||||||
Total Power | $ | 8 | $ | (2 | ) | ||||||||||||||||||||||||||
PSE&G | |||||||||||||||||||||||||||||||
Gas and Capacity | Forward Contracts (B) | $ | 88 | $ | (140 | ) | Discounted Cash Flow | Long-Term Capacity Prices and Transportation Costs | (B) | ||||||||||||||||||||||
Total PSE&G | $ | 88 | $ | (140 | ) | ||||||||||||||||||||||||||
TOTAL PSEG | $ | 96 | $ | (142 | ) | ||||||||||||||||||||||||||
Quantitative Information About Level 3 Fair Value Measurements | |||||||||||||||||||||||||||||||
Commodity | Level 3 Position | Fair Value as of December 31, 2012 | Valuation | Significant | Range | ||||||||||||||||||||||||||
Technique(s) | Unobservable Input | ||||||||||||||||||||||||||||||
Assets | (Liabilities) | ||||||||||||||||||||||||||||||
Millions | |||||||||||||||||||||||||||||||
Power | |||||||||||||||||||||||||||||||
Electricity | Electric Swaps | $ | 7 | $ | (1 | ) | Discounted Cash Flow | Power Basis | $0 to $10/MWh | ||||||||||||||||||||||
Electricity | Electric Load Contracts | 1 | (2 | ) | Discounted Cash Flow | Historic Load Variability | -5% to +10% | ||||||||||||||||||||||||
Other | Various (A) | 5 | (1 | ) | |||||||||||||||||||||||||||
Total Power | $ | 13 | $ | (4 | ) | ||||||||||||||||||||||||||
PSE&G | |||||||||||||||||||||||||||||||
Gas and Capacity | Forward Contracts (C) | $ | 67 | $ | (107 | ) | Discounted Cash Flow | Long-Term Gas Basis and Capacity Prices | (C) | ||||||||||||||||||||||
Total PSE&G | $ | 67 | $ | (107 | ) | ||||||||||||||||||||||||||
TOTAL PSEG | $ | 80 | $ | (111 | ) | ||||||||||||||||||||||||||
(A) | Includes gas supply positions which are immaterial as of September 30, 2013 and December 31, 2012. Also includes long-term electric capacity positions which are immaterial as of December 31, 2012. | ||||||||||||||||||||||||||||||
(B) | Unobservable inputs for the long-term electric capacity contracts include forecasted capacity prices in the range of $100 to $400/MW day. Unobservable inputs for gas supply contracts include the weighted average cost of transporting gas in the range of $0.70 to $1 per dekatherm. | ||||||||||||||||||||||||||||||
(C) | Includes long-term electric capacity and long-term gas supply positions with various unobservable inputs. Unobservable inputs for the long-term electric capacity contracts include forecasted capacity prices in the range of $100 to $400/MW day. Significant unobservable inputs for the gas supply contracts include long-term basis prices in the range of $0 to $4/MMBTU of natural gas. | ||||||||||||||||||||||||||||||
Significant unobservable inputs listed above would have a direct impact on the fair values of the above Level 3 instruments if they were adjusted. For energy-related contracts in cases where Power is a seller, an increase in either the power basis or the load variability or the longer-term gas basis amounts would decrease the fair value. For long-term electric capacity contracts where PSE&G is a buyer, an increase in the capacity price would increase the fair value. For gas supply contracts where PSE&G is a seller, an increase in gas transportation cost would increase the fair value. | |||||||||||||||||||||||||||||||
A reconciliation of the beginning and ending balances of Level 3 derivative contracts and securities for the three months and nine months ended September 30, 2013 and 2012, respectively, follows: | |||||||||||||||||||||||||||||||
Changes in Level 3 Assets and (Liabilities) Measured at Fair Value on a Recurring Basis for the Three Months Ended September 30, 2013 | |||||||||||||||||||||||||||||||
Total Gains or (Losses) | |||||||||||||||||||||||||||||||
Realized/Unrealized | |||||||||||||||||||||||||||||||
Description | Balance as of | Included in | Included in | Purchases | Issuances/ | Transfers | Balance as of September 30, 2013 | ||||||||||||||||||||||||
1-Jul-13 | Income (A) | Regulatory Assets/ | (Sales) | Settlements | In/Out | ||||||||||||||||||||||||||
Liabilities (B) | (C) | (D) | |||||||||||||||||||||||||||||
Millions | |||||||||||||||||||||||||||||||
PSEG | |||||||||||||||||||||||||||||||
Net Derivative Assets (Liabilities) | $ | (35 | ) | $ | 1 | $ | (11 | ) | $ | — | $ | (1 | ) | $ | — | $ | (46 | ) | |||||||||||||
Power | |||||||||||||||||||||||||||||||
Net Derivative Assets (Liabilities) | $ | 6 | $ | 1 | $ | — | $ | — | $ | (1 | ) | $ | — | $ | 6 | ||||||||||||||||
PSE&G | |||||||||||||||||||||||||||||||
Net Derivative Assets (Liabilities) | $ | (41 | ) | $ | — | $ | (11 | ) | $ | — | $ | — | $ | — | $ | (52 | ) | ||||||||||||||
Changes in Level 3 Assets and (Liabilities) Measured at Fair Value on a Recurring Basis | |||||||||||||||||||||||||||||||
for the Nine Months Ended September 30, 2013 | |||||||||||||||||||||||||||||||
Total Gains or (Losses) | |||||||||||||||||||||||||||||||
Realized/Unrealized | |||||||||||||||||||||||||||||||
Description | Balance as of | Included in | Included in | Purchases | Issuances/ | Transfers | Balance as of September 30, 2013 | ||||||||||||||||||||||||
1-Jan-13 | Income (E) | Regulatory Assets/ | (Sales) | Settlements | In/Out | ||||||||||||||||||||||||||
Liabilities (B) | (C) | (D) | |||||||||||||||||||||||||||||
Millions | |||||||||||||||||||||||||||||||
PSEG | |||||||||||||||||||||||||||||||
Net Derivative Assets (Liabilities) | $ | (31 | ) | $ | (16 | ) | $ | (12 | ) | $ | — | $ | 9 | $ | 4 | $ | (46 | ) | |||||||||||||
Power | |||||||||||||||||||||||||||||||
Net Derivative Assets (Liabilities) | $ | 9 | $ | (16 | ) | $ | — | $ | — | $ | 9 | $ | 4 | $ | 6 | ||||||||||||||||
PSE&G | |||||||||||||||||||||||||||||||
Net Derivative Assets (Liabilities) | $ | (40 | ) | $ | — | $ | (12 | ) | $ | — | $ | — | $ | — | $ | (52 | ) | ||||||||||||||
Changes in Level 3 Assets and (Liabilities) Measured at Fair Value on a Recurring Basis for the Three Months Ended September 30, 2012 | |||||||||||||||||||||||||||||||
Total Gains or (Losses) | |||||||||||||||||||||||||||||||
Realized/Unrealized | |||||||||||||||||||||||||||||||
Description | Balance as of | Included in | Included in | Purchases | Issuances/ | Transfers | Balance as of September 30, 2012 | ||||||||||||||||||||||||
1-Jul-12 | Income (A) | Regulatory Assets/ | (Sales) | Settlements | In/Out | ||||||||||||||||||||||||||
Liabilities (B) | (C) | (D) | |||||||||||||||||||||||||||||
Millions | |||||||||||||||||||||||||||||||
PSEG | |||||||||||||||||||||||||||||||
Net Derivative Assets (Liabilities) | $ | (36 | ) | $ | (1 | ) | $ | 25 | $ | — | $ | (9 | ) | $ | — | $ | (21 | ) | |||||||||||||
Non-Recourse Debt | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||
Power | |||||||||||||||||||||||||||||||
Net Derivative Assets (Liabilities) | $ | 22 | $ | (1 | ) | $ | — | $ | — | $ | (9 | ) | $ | — | $ | 12 | |||||||||||||||
PSE&G | |||||||||||||||||||||||||||||||
Net Derivative Assets (Liabilities) | $ | (58 | ) | $ | — | $ | 25 | $ | — | $ | — | $ | — | $ | (33 | ) | |||||||||||||||
Changes in Level 3 Assets and (Liabilities) Measured at Fair Value on a Recurring Basis | |||||||||||||||||||||||||||||||
for the Nine Months Ended September 30, 2012 | |||||||||||||||||||||||||||||||
Total Gains or (Losses) | |||||||||||||||||||||||||||||||
Realized/Unrealized | |||||||||||||||||||||||||||||||
Description | Balance as of | Included in | Included in | Purchases | Issuances/ | Transfers | Balance as of September 30, 2012 | ||||||||||||||||||||||||
1-Jan-12 | Income (E) | Regulatory Assets/ | (Sales) | Settlements | In/Out | ||||||||||||||||||||||||||
Liabilities (B) | (C) | (D) | |||||||||||||||||||||||||||||
Millions | |||||||||||||||||||||||||||||||
PSEG | |||||||||||||||||||||||||||||||
Net Derivative Assets (Liabilities) | $ | 21 | $ | 40 | $ | (30 | ) | $ | — | $ | (52 | ) | $ | — | $ | (21 | ) | ||||||||||||||
Non-Recourse Debt | $ | (50 | ) | $ | 50 | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
Power | |||||||||||||||||||||||||||||||
Net Derivative Assets (Liabilities) | $ | 24 | $ | 40 | $ | — | $ | — | $ | (52 | ) | $ | — | $ | 12 | ||||||||||||||||
PSE&G | |||||||||||||||||||||||||||||||
Net Derivative Assets (Liabilities) | $ | (3 | ) | $ | — | $ | (30 | ) | $ | — | $ | — | $ | — | $ | (33 | ) | ||||||||||||||
(A) | PSEG’s and Power’s gains and losses attributable to changes in net derivative assets and liabilities include $1 million and $(1) million in Operating Income in 2013 and 2012, respectively. The $1 million in Operating Income in 2013 is unrealized. Of the $(1) million in Operating Income in 2012, $(10) million is unrealized. Energy Holdings' release from its obligation under the non-recourse debt is included in PSEG's Operating Income for 2012 and is offset by the write-off of the related assets. | ||||||||||||||||||||||||||||||
(B) | Mainly includes gains/losses on PSE&G’s derivative contracts that are not included in either earnings or OCI, as they are deferred as a Regulatory Asset/Liability and are expected to be recovered from/returned to PSE&G’s customers. | ||||||||||||||||||||||||||||||
(C) | Represents $(1) million and $(9) million in settlements for the three months ended September 30, 2013 and 2012. Includes $9 million and $(52) million in settlements for the nine months ended September 30, 2013 and 2012, respectively. | ||||||||||||||||||||||||||||||
(D) | During the nine months ended September 30, 2013, $4 million of net derivatives assets/liabilities were transferred from Level 3 to Level 2 due to more observable pricing for the underlying securities. The transfer was recognized as of the beginning of the first quarter (i.e. the quarter in which the transfer occurred), as per PSEG's policy. There were no transfers among levels during the three months ended September 30, 2013 and 2012 and the nine months ended September 30, 2012. | ||||||||||||||||||||||||||||||
(E) | PSEG’s and Power’s gains and losses attributable to changes in net derivative assets and liabilities include $(16) million and $40 million in Operating Income in 2013 and 2012, respectively. Of the $(16) million in Operating Income in 2013, $(7) million is unrealized. Of the $40 million in Operating Income in 2012, $(12) million is unrealized. Energy Holdings' release from its obligation under the non-recourse debt is included in PSEG's Operating Income for 2012 and is offset by the write-off of the related assets. | ||||||||||||||||||||||||||||||
As of September 30, 2013, PSEG carried $1.9 billion of net assets that are measured at fair value on a recurring basis, of which $46 million of net liabilities were measured using unobservable inputs and classified as Level 3 within the fair value hierarchy. | |||||||||||||||||||||||||||||||
As of September 30, 2012, PSEG carried $1.8 billion of net assets that are measured at fair value on a recurring basis, of which $21 million of net liabilities were measured using unobservable inputs and classified as Level 3 within the fair value hierarchy. | |||||||||||||||||||||||||||||||
Fair Value of Debt | |||||||||||||||||||||||||||||||
The estimated fair values were determined using the market quotations or values of instruments with similar terms, credit ratings, remaining maturities and redemptions as of September 30, 2013 and December 31, 2012. | |||||||||||||||||||||||||||||||
30-Sep-13 | 31-Dec-12 | ||||||||||||||||||||||||||||||
Carrying | Fair | Carrying | Fair | ||||||||||||||||||||||||||||
Amount | Value | Amount | Value | ||||||||||||||||||||||||||||
Millions | |||||||||||||||||||||||||||||||
Long-Term Debt: | |||||||||||||||||||||||||||||||
PSEG (Parent) (A) | $ | 27 | $ | 42 | $ | 38 | $ | 57 | |||||||||||||||||||||||
Power -Recourse Debt (B) | 2,041 | 2,355 | 2,340 | 2,818 | |||||||||||||||||||||||||||
PSE&G (B) | 5,841 | 6,058 | 4,795 | 5,606 | |||||||||||||||||||||||||||
Transition Funding (PSE&G) (B) | 534 | 578 | 690 | 765 | |||||||||||||||||||||||||||
Transition Funding II (PSE&G) (B) | 27 | 28 | 32 | 34 | |||||||||||||||||||||||||||
Energy Holdings: | |||||||||||||||||||||||||||||||
Project Level, Non-Recourse Debt (C) | 16 | 16 | 44 | 44 | |||||||||||||||||||||||||||
Total Long-Term Debt | $ | 8,486 | $ | 9,077 | $ | 7,939 | $ | 9,324 | |||||||||||||||||||||||
(A) | Fair value represents net offsets to debt resulting from adjustments from interest rate swaps entered into to hedge certain debt at Power. Carrying amount represents such fair value reduced by the unamortized premium resulting from a debt exchange entered into between Power and Energy Holdings. | ||||||||||||||||||||||||||||||
(B) | The debt fair valuation is based on the present value of each bond’s future cash flows. The discount rates used in the present value analysis are based on an estimate of new issue bond yields across the treasury curve. When a bond has embedded options, an interest rate model is used to reflect the impact of interest rate volatility into the analysis (primarily Level 2 measurements). | ||||||||||||||||||||||||||||||
(C) | Non-recourse project debt is valued as equivalent to the amortized cost and is classified as a Level 3 measurement. |
Other_Income_and_Deductions
Other Income and Deductions | 9 Months Ended | |||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||
Other Income and Deductions | Other Income and Deductions | |||||||||||||||||
Other Income | Power | PSE&G | Other (A) | Consolidated | ||||||||||||||
Millions | ||||||||||||||||||
Three Months Ended September 30, 2013 | ||||||||||||||||||
NDT Fund Gains, Interest, Dividend and Other Income | $ | 45 | $ | — | $ | — | $ | 45 | ||||||||||
Allowance of Funds Used During Construction | — | 5 | — | 5 | ||||||||||||||
Solar Loan Interest | — | 7 | — | 7 | ||||||||||||||
Other | — | 1 | 1 | 2 | ||||||||||||||
Total Other Income | $ | 45 | $ | 13 | $ | 1 | $ | 59 | ||||||||||
Three Months Ended September 30, 2012 | ||||||||||||||||||
NDT Fund Gains, Interest, Dividend and Other Income | $ | 103 | $ | — | $ | — | $ | 103 | ||||||||||
Allowance of Funds Used During Construction | — | 6 | — | 6 | ||||||||||||||
Solar Loan Interest | — | 5 | — | 5 | ||||||||||||||
Other | 1 | 5 | 1 | 7 | ||||||||||||||
Total Other Income | $ | 104 | $ | 16 | $ | 1 | $ | 121 | ||||||||||
Nine Months Ended September 30, 2013 | ||||||||||||||||||
NDT Fund Gains, Interest, Dividend and Other Income | $ | 125 | $ | — | $ | — | $ | 125 | ||||||||||
Allowance of Funds Used During Construction | — | 17 | — | 17 | ||||||||||||||
Solar Loan Interest | — | 18 | — | 18 | ||||||||||||||
Other | 2 | 6 | 4 | 12 | ||||||||||||||
Total Other Income | $ | 127 | $ | 41 | $ | 4 | $ | 172 | ||||||||||
Nine Months Ended September 30, 2012 | ||||||||||||||||||
NDT Fund Gains, Interest, Dividend and Other Income | $ | 167 | $ | — | $ | — | $ | 167 | ||||||||||
Allowance of Funds Used During Construction | — | 17 | — | 17 | ||||||||||||||
Solar Loan Interest | — | 13 | — | 13 | ||||||||||||||
Other | 4 | 9 | 6 | 19 | ||||||||||||||
Total Other Income | $ | 171 | $ | 39 | $ | 6 | $ | 216 | ||||||||||
Other Deductions | Power | PSE&G | Other (A) | Consolidated | ||||||||||||||
Millions | ||||||||||||||||||
Three Months Ended September 30, 2013 | ||||||||||||||||||
NDT Fund Realized Losses and Expenses | $ | 11 | $ | — | $ | — | $ | 11 | ||||||||||
Other | — | 1 | — | 1 | ||||||||||||||
Total Other Deductions | $ | 11 | $ | 1 | $ | — | $ | 12 | ||||||||||
Three Months Ended September 30, 2012 | ||||||||||||||||||
NDT Fund Realized Losses and Expenses | $ | 20 | $ | — | $ | — | $ | 20 | ||||||||||
Other | — | 6 | — | 6 | ||||||||||||||
Total Other Deductions | $ | 20 | $ | 6 | $ | — | $ | 26 | ||||||||||
Nine Months Ended September 30, 2013 | ||||||||||||||||||
NDT Fund Realized Losses and Expenses | $ | 40 | $ | — | $ | — | $ | 40 | ||||||||||
Other | 9 | 3 | 2 | 14 | ||||||||||||||
Total Other Deductions | $ | 49 | $ | 3 | $ | 2 | $ | 54 | ||||||||||
Nine Months Ended September 30, 2012 | ||||||||||||||||||
NDT Fund Realized Losses and Expenses | $ | 45 | $ | — | $ | — | $ | 45 | ||||||||||
Other | 7 | 8 | 1 | 16 | ||||||||||||||
Total Other Deductions | $ | 52 | $ | 8 | $ | 1 | $ | 61 | ||||||||||
(A) | Other primarily consists of activity at PSEG (as parent company), Energy Holdings, Services and intercompany eliminations. | |||||||||||||||||
Power [Member] | ||||||||||||||||||
Other Income and Deductions | Other Income and Deductions | |||||||||||||||||
Other Income | Power | PSE&G | Other (A) | Consolidated | ||||||||||||||
Millions | ||||||||||||||||||
Three Months Ended September 30, 2013 | ||||||||||||||||||
NDT Fund Gains, Interest, Dividend and Other Income | $ | 45 | $ | — | $ | — | $ | 45 | ||||||||||
Allowance of Funds Used During Construction | — | 5 | — | 5 | ||||||||||||||
Solar Loan Interest | — | 7 | — | 7 | ||||||||||||||
Other | — | 1 | 1 | 2 | ||||||||||||||
Total Other Income | $ | 45 | $ | 13 | $ | 1 | $ | 59 | ||||||||||
Three Months Ended September 30, 2012 | ||||||||||||||||||
NDT Fund Gains, Interest, Dividend and Other Income | $ | 103 | $ | — | $ | — | $ | 103 | ||||||||||
Allowance of Funds Used During Construction | — | 6 | — | 6 | ||||||||||||||
Solar Loan Interest | — | 5 | — | 5 | ||||||||||||||
Other | 1 | 5 | 1 | 7 | ||||||||||||||
Total Other Income | $ | 104 | $ | 16 | $ | 1 | $ | 121 | ||||||||||
Nine Months Ended September 30, 2013 | ||||||||||||||||||
NDT Fund Gains, Interest, Dividend and Other Income | $ | 125 | $ | — | $ | — | $ | 125 | ||||||||||
Allowance of Funds Used During Construction | — | 17 | — | 17 | ||||||||||||||
Solar Loan Interest | — | 18 | — | 18 | ||||||||||||||
Other | 2 | 6 | 4 | 12 | ||||||||||||||
Total Other Income | $ | 127 | $ | 41 | $ | 4 | $ | 172 | ||||||||||
Nine Months Ended September 30, 2012 | ||||||||||||||||||
NDT Fund Gains, Interest, Dividend and Other Income | $ | 167 | $ | — | $ | — | $ | 167 | ||||||||||
Allowance of Funds Used During Construction | — | 17 | — | 17 | ||||||||||||||
Solar Loan Interest | — | 13 | — | 13 | ||||||||||||||
Other | 4 | 9 | 6 | 19 | ||||||||||||||
Total Other Income | $ | 171 | $ | 39 | $ | 6 | $ | 216 | ||||||||||
Other Deductions | Power | PSE&G | Other (A) | Consolidated | ||||||||||||||
Millions | ||||||||||||||||||
Three Months Ended September 30, 2013 | ||||||||||||||||||
NDT Fund Realized Losses and Expenses | $ | 11 | $ | — | $ | — | $ | 11 | ||||||||||
Other | — | 1 | — | 1 | ||||||||||||||
Total Other Deductions | $ | 11 | $ | 1 | $ | — | $ | 12 | ||||||||||
Three Months Ended September 30, 2012 | ||||||||||||||||||
NDT Fund Realized Losses and Expenses | $ | 20 | $ | — | $ | — | $ | 20 | ||||||||||
Other | — | 6 | — | 6 | ||||||||||||||
Total Other Deductions | $ | 20 | $ | 6 | $ | — | $ | 26 | ||||||||||
Nine Months Ended September 30, 2013 | ||||||||||||||||||
NDT Fund Realized Losses and Expenses | $ | 40 | $ | — | $ | — | $ | 40 | ||||||||||
Other | 9 | 3 | 2 | 14 | ||||||||||||||
Total Other Deductions | $ | 49 | $ | 3 | $ | 2 | $ | 54 | ||||||||||
Nine Months Ended September 30, 2012 | ||||||||||||||||||
NDT Fund Realized Losses and Expenses | $ | 45 | $ | — | $ | — | $ | 45 | ||||||||||
Other | 7 | 8 | 1 | 16 | ||||||||||||||
Total Other Deductions | $ | 52 | $ | 8 | $ | 1 | $ | 61 | ||||||||||
(A) | Other primarily consists of activity at PSEG (as parent company), Energy Holdings, Services and intercompany eliminations. | |||||||||||||||||
PSE And G [Member] | ||||||||||||||||||
Other Income and Deductions | Other Income and Deductions | |||||||||||||||||
Other Income | Power | PSE&G | Other (A) | Consolidated | ||||||||||||||
Millions | ||||||||||||||||||
Three Months Ended September 30, 2013 | ||||||||||||||||||
NDT Fund Gains, Interest, Dividend and Other Income | $ | 45 | $ | — | $ | — | $ | 45 | ||||||||||
Allowance of Funds Used During Construction | — | 5 | — | 5 | ||||||||||||||
Solar Loan Interest | — | 7 | — | 7 | ||||||||||||||
Other | — | 1 | 1 | 2 | ||||||||||||||
Total Other Income | $ | 45 | $ | 13 | $ | 1 | $ | 59 | ||||||||||
Three Months Ended September 30, 2012 | ||||||||||||||||||
NDT Fund Gains, Interest, Dividend and Other Income | $ | 103 | $ | — | $ | — | $ | 103 | ||||||||||
Allowance of Funds Used During Construction | — | 6 | — | 6 | ||||||||||||||
Solar Loan Interest | — | 5 | — | 5 | ||||||||||||||
Other | 1 | 5 | 1 | 7 | ||||||||||||||
Total Other Income | $ | 104 | $ | 16 | $ | 1 | $ | 121 | ||||||||||
Nine Months Ended September 30, 2013 | ||||||||||||||||||
NDT Fund Gains, Interest, Dividend and Other Income | $ | 125 | $ | — | $ | — | $ | 125 | ||||||||||
Allowance of Funds Used During Construction | — | 17 | — | 17 | ||||||||||||||
Solar Loan Interest | — | 18 | — | 18 | ||||||||||||||
Other | 2 | 6 | 4 | 12 | ||||||||||||||
Total Other Income | $ | 127 | $ | 41 | $ | 4 | $ | 172 | ||||||||||
Nine Months Ended September 30, 2012 | ||||||||||||||||||
NDT Fund Gains, Interest, Dividend and Other Income | $ | 167 | $ | — | $ | — | $ | 167 | ||||||||||
Allowance of Funds Used During Construction | — | 17 | — | 17 | ||||||||||||||
Solar Loan Interest | — | 13 | — | 13 | ||||||||||||||
Other | 4 | 9 | 6 | 19 | ||||||||||||||
Total Other Income | $ | 171 | $ | 39 | $ | 6 | $ | 216 | ||||||||||
Other Deductions | Power | PSE&G | Other (A) | Consolidated | ||||||||||||||
Millions | ||||||||||||||||||
Three Months Ended September 30, 2013 | ||||||||||||||||||
NDT Fund Realized Losses and Expenses | $ | 11 | $ | — | $ | — | $ | 11 | ||||||||||
Other | — | 1 | — | 1 | ||||||||||||||
Total Other Deductions | $ | 11 | $ | 1 | $ | — | $ | 12 | ||||||||||
Three Months Ended September 30, 2012 | ||||||||||||||||||
NDT Fund Realized Losses and Expenses | $ | 20 | $ | — | $ | — | $ | 20 | ||||||||||
Other | — | 6 | — | 6 | ||||||||||||||
Total Other Deductions | $ | 20 | $ | 6 | $ | — | $ | 26 | ||||||||||
Nine Months Ended September 30, 2013 | ||||||||||||||||||
NDT Fund Realized Losses and Expenses | $ | 40 | $ | — | $ | — | $ | 40 | ||||||||||
Other | 9 | 3 | 2 | 14 | ||||||||||||||
Total Other Deductions | $ | 49 | $ | 3 | $ | 2 | $ | 54 | ||||||||||
Nine Months Ended September 30, 2012 | ||||||||||||||||||
NDT Fund Realized Losses and Expenses | $ | 45 | $ | — | $ | — | $ | 45 | ||||||||||
Other | 7 | 8 | 1 | 16 | ||||||||||||||
Total Other Deductions | $ | 52 | $ | 8 | $ | 1 | $ | 61 | ||||||||||
(A) | Other primarily consists of activity at PSEG (as parent company), Energy Holdings, Services and intercompany eliminations. |
Income_Taxes
Income Taxes | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Income Taxes | Income Taxes | |||||||||||||
PSEG’s, Power’s and PSE&G’s effective tax rates for the three months and nine months ended September 30, 2013 and 2012 were as follows: | ||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||
September 30, | September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
PSEG | 41 | % | 41 | % | 40.5 | % | 36.3 | % | ||||||
Power | 41 | % | 42.4 | % | 40.6 | % | 41 | % | ||||||
PSE&G | 40.6 | % | 39.9 | % | 40 | % | 35.4 | % | ||||||
For the three months ended September 30, 2013, as compared to the same period in the prior year, the decrease in Power's effective tax rate was due primarily to higher NDT income in 2012. | ||||||||||||||
For the nine months ended September 30, 2013, PSEG's and PSE&G's effective tax rates were higher than last year's effective tax rates due primarily to a settlement in 2012 with the IRS in regard to leveraged leases and the federal tax audit for tax years 1997 through 2006. | ||||||||||||||
In September 2013, the U.S. Department of the Treasury and the IRS released final regulations that provide guidance on applying Section 263(a) of the Internal Revenue Code to amounts paid to acquire, produce, or improve tangible property, as well as rules for materials and supplies. Implementation of these final regulations in September 2013 had no material impact on PSEG’s and its subsidiaries’ results of operations, financial condition or cash flows. | ||||||||||||||
The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 included a provision making qualified property placed into service after September 8, 2010 and before January 1, 2012, eligible for 100% bonus depreciation for tax purposes. In addition, qualified property placed into service in 2012 was eligible for 50% bonus depreciation for tax purposes. On January 2, 2013, the President signed into law the American Taxpayer Relief Act of 2012 that further extends the 50% bonus depreciation for qualified property placed into service before January 1, 2014. These provisions have generated cash for PSEG through tax benefits related to the accelerated depreciation. These tax benefits would have otherwise been received over an estimated average 20 year period. | ||||||||||||||
In June 2009, September 2008 and December 2007, PSEG made tax deposits with the IRS in the amounts of $140 million, $80 million and $100 million, respectively, to defray potential interest costs associated with disputed tax assessments associated with certain lease investments. On January 31, 2012, PSEG signed a specific matter closing agreement with the IRS regarding this matter. Based on this agreement, these deposits were applied against tax and interest due pursuant to the closing agreement. Further, on the same date, PSEG signed a Form 870-AD settlement agreement covering all audit issues for tax years 1997 through 2003. In March 2012, PSEG executed a Form 870-AD settlement agreement covering all audit issues for tax years 2004 through 2006. These agreements concluded the audits for these years for PSEG and the leasing issue for all tax years. The financial statement impacts of these agreements, net of existing financial statement reserves, was a net decrease in tax expense in the first quarter of 2012 of $71 million for PSEG, including $30 million and $1 million for PSE&G and Power, respectively. | ||||||||||||||
Power [Member] | ||||||||||||||
Income Taxes | Income Taxes | |||||||||||||
PSEG’s, Power’s and PSE&G’s effective tax rates for the three months and nine months ended September 30, 2013 and 2012 were as follows: | ||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||
September 30, | September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
PSEG | 41 | % | 41 | % | 40.5 | % | 36.3 | % | ||||||
Power | 41 | % | 42.4 | % | 40.6 | % | 41 | % | ||||||
PSE&G | 40.6 | % | 39.9 | % | 40 | % | 35.4 | % | ||||||
For the three months ended September 30, 2013, as compared to the same period in the prior year, the decrease in Power's effective tax rate was due primarily to higher NDT income in 2012. | ||||||||||||||
For the nine months ended September 30, 2013, PSEG's and PSE&G's effective tax rates were higher than last year's effective tax rates due primarily to a settlement in 2012 with the IRS in regard to leveraged leases and the federal tax audit for tax years 1997 through 2006. | ||||||||||||||
In September 2013, the U.S. Department of the Treasury and the IRS released final regulations that provide guidance on applying Section 263(a) of the Internal Revenue Code to amounts paid to acquire, produce, or improve tangible property, as well as rules for materials and supplies. Implementation of these final regulations in September 2013 had no material impact on PSEG’s and its subsidiaries’ results of operations, financial condition or cash flows. | ||||||||||||||
The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 included a provision making qualified property placed into service after September 8, 2010 and before January 1, 2012, eligible for 100% bonus depreciation for tax purposes. In addition, qualified property placed into service in 2012 was eligible for 50% bonus depreciation for tax purposes. On January 2, 2013, the President signed into law the American Taxpayer Relief Act of 2012 that further extends the 50% bonus depreciation for qualified property placed into service before January 1, 2014. These provisions have generated cash for PSEG through tax benefits related to the accelerated depreciation. These tax benefits would have otherwise been received over an estimated average 20 year period. | ||||||||||||||
In June 2009, September 2008 and December 2007, PSEG made tax deposits with the IRS in the amounts of $140 million, $80 million and $100 million, respectively, to defray potential interest costs associated with disputed tax assessments associated with certain lease investments. On January 31, 2012, PSEG signed a specific matter closing agreement with the IRS regarding this matter. Based on this agreement, these deposits were applied against tax and interest due pursuant to the closing agreement. Further, on the same date, PSEG signed a Form 870-AD settlement agreement covering all audit issues for tax years 1997 through 2003. In March 2012, PSEG executed a Form 870-AD settlement agreement covering all audit issues for tax years 2004 through 2006. These agreements concluded the audits for these years for PSEG and the leasing issue for all tax years. The financial statement impacts of these agreements, net of existing financial statement reserves, was a net decrease in tax expense in the first quarter of 2012 of $71 million for PSEG, including $30 million and $1 million for PSE&G and Power, respectively. | ||||||||||||||
PSE And G [Member] | ||||||||||||||
Income Taxes | Income Taxes | |||||||||||||
PSEG’s, Power’s and PSE&G’s effective tax rates for the three months and nine months ended September 30, 2013 and 2012 were as follows: | ||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||
September 30, | September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
PSEG | 41 | % | 41 | % | 40.5 | % | 36.3 | % | ||||||
Power | 41 | % | 42.4 | % | 40.6 | % | 41 | % | ||||||
PSE&G | 40.6 | % | 39.9 | % | 40 | % | 35.4 | % | ||||||
For the three months ended September 30, 2013, as compared to the same period in the prior year, the decrease in Power's effective tax rate was due primarily to higher NDT income in 2012. | ||||||||||||||
For the nine months ended September 30, 2013, PSEG's and PSE&G's effective tax rates were higher than last year's effective tax rates due primarily to a settlement in 2012 with the IRS in regard to leveraged leases and the federal tax audit for tax years 1997 through 2006. | ||||||||||||||
In September 2013, the U.S. Department of the Treasury and the IRS released final regulations that provide guidance on applying Section 263(a) of the Internal Revenue Code to amounts paid to acquire, produce, or improve tangible property, as well as rules for materials and supplies. Implementation of these final regulations in September 2013 had no material impact on PSEG’s and its subsidiaries’ results of operations, financial condition or cash flows. | ||||||||||||||
The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 included a provision making qualified property placed into service after September 8, 2010 and before January 1, 2012, eligible for 100% bonus depreciation for tax purposes. In addition, qualified property placed into service in 2012 was eligible for 50% bonus depreciation for tax purposes. On January 2, 2013, the President signed into law the American Taxpayer Relief Act of 2012 that further extends the 50% bonus depreciation for qualified property placed into service before January 1, 2014. These provisions have generated cash for PSEG through tax benefits related to the accelerated depreciation. These tax benefits would have otherwise been received over an estimated average 20 year period. | ||||||||||||||
In June 2009, September 2008 and December 2007, PSEG made tax deposits with the IRS in the amounts of $140 million, $80 million and $100 million, respectively, to defray potential interest costs associated with disputed tax assessments associated with certain lease investments. On January 31, 2012, PSEG signed a specific matter closing agreement with the IRS regarding this matter. Based on this agreement, these deposits were applied against tax and interest due pursuant to the closing agreement. Further, on the same date, PSEG signed a Form 870-AD settlement agreement covering all audit issues for tax years 1997 through 2003. In March 2012, PSEG executed a Form 870-AD settlement agreement covering all audit issues for tax years 2004 through 2006. These agreements concluded the audits for these years for PSEG and the leasing issue for all tax years. The financial statement impacts of these agreements, net of existing financial statement reserves, was a net decrease in tax expense in the first quarter of 2012 of $71 million for PSEG, including $30 million and $1 million for PSE&G and Power, respectively. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income (Loss), Net of Tax | 9 Months Ended | ||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | Accumulated Other Comprehensive Income (Loss), Net of Tax | ||||||||||||||||||||||||||||
Other Comprehensive Income (Loss) | |||||||||||||||||||||||||||||
PSEG | Three Months Ended September 30, 2013 | ||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | Derivative Contracts | Pension and OPEB Plans | Available-for -Sale Securities | Total | |||||||||||||||||||||||||
Millions | |||||||||||||||||||||||||||||
Balance as of June 30, 2013 | $ | 3 | $ | (466 | ) | $ | 101 | $ | (362 | ) | |||||||||||||||||||
Other Comprehensive Income before Reclassifications | 1 | — | 27 | 28 | |||||||||||||||||||||||||
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) | (2 | ) | 9 | (11 | ) | (4 | ) | ||||||||||||||||||||||
Net Current Period Other Comprehensive Income (Loss) | (1 | ) | 9 | 16 | 24 | ||||||||||||||||||||||||
Balance as of September 30, 2013 | $ | 2 | $ | (457 | ) | $ | 117 | $ | (338 | ) | |||||||||||||||||||
Other Comprehensive Income (Loss) | |||||||||||||||||||||||||||||
Power | Three Months Ended September 30, 2013 | ||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | Derivative Contracts | Pension and OPEB Plans | Available-for -Sale Securities | Total | |||||||||||||||||||||||||
Millions | |||||||||||||||||||||||||||||
Balance as of June 30, 2013 | $ | 4 | $ | (405 | ) | $ | 98 | $ | (303 | ) | |||||||||||||||||||
Other Comprehensive Income before Reclassifications | 1 | — | 28 | 29 | |||||||||||||||||||||||||
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) | (2 | ) | 8 | (11 | ) | (5 | ) | ||||||||||||||||||||||
Net Current Period Other Comprehensive Income (Loss) | (1 | ) | 8 | 17 | 24 | ||||||||||||||||||||||||
Balance as of September 30, 2013 | $ | 3 | $ | (397 | ) | $ | 115 | $ | (279 | ) | |||||||||||||||||||
Other Comprehensive Income (Loss) | |||||||||||||||||||||||||||||
PSEG | Nine Months Ended September 30, 2013 | ||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | Derivative Contracts | Pension and OPEB Plans | Available-for -Sale Securities | Total | |||||||||||||||||||||||||
Millions | |||||||||||||||||||||||||||||
Balance as of December 31, 2012 | $ | 7 | $ | (485 | ) | $ | 90 | $ | (388 | ) | |||||||||||||||||||
Other Comprehensive Income before Reclassifications | 1 | — | 53 | 54 | |||||||||||||||||||||||||
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) | (6 | ) | 28 | (26 | ) | (4 | ) | ||||||||||||||||||||||
Net Current Period Other Comprehensive Income (Loss) | (5 | ) | 28 | 27 | 50 | ||||||||||||||||||||||||
Balance as of September 30, 2013 | $ | 2 | $ | (457 | ) | $ | 117 | $ | (338 | ) | |||||||||||||||||||
Other Comprehensive Income (Loss) | |||||||||||||||||||||||||||||
Power | Nine Months Ended September 30, 2013 | ||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | Derivative Contracts | Pension and OPEB Plans | Available-for -Sale Securities | Total | |||||||||||||||||||||||||
Millions | |||||||||||||||||||||||||||||
Balance as of December 31, 2012 | $ | 9 | $ | (422 | ) | $ | 85 | $ | (328 | ) | |||||||||||||||||||
Other Comprehensive Income before Reclassifications | 1 | — | 56 | 57 | |||||||||||||||||||||||||
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) | (7 | ) | 25 | (26 | ) | (8 | ) | ||||||||||||||||||||||
Net Current Period Other Comprehensive Income (Loss) | (6 | ) | 25 | 30 | 49 | ||||||||||||||||||||||||
Balance as of September 30, 2013 | $ | 3 | $ | (397 | ) | $ | 115 | $ | (279 | ) | |||||||||||||||||||
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) to Income Statement | |||||||||||||||||||||||||||||
PSEG | Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||
30-Sep-13 | 30-Sep-13 | ||||||||||||||||||||||||||||
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 | Pre-Tax Amount | Tax (Expense) Benefit | After-Tax Amount | ||||||||||||||||||||||
Millions | |||||||||||||||||||||||||||||
Cash Flow Hedges | |||||||||||||||||||||||||||||
Energy Related Contracts | Operating Revenues | $ | 3 | $ | (1 | ) | $ | 2 | $ | 11 | $ | (4 | ) | $ | 7 | ||||||||||||||
Interest Rate Swaps | Interest Expense | — | — | — | (1 | ) | — | $ | (1 | ) | |||||||||||||||||||
Pension and OPEB Plans | |||||||||||||||||||||||||||||
Amortization of Prior Service (Cost) Credit | Operation and Maintenance Expense | 3 | (1 | ) | 2 | 8 | (3 | ) | 5 | ||||||||||||||||||||
Amortization of Actuarial Loss | Operation and Maintenance Expense | (18 | ) | 7 | (11 | ) | (56 | ) | 23 | (33 | ) | ||||||||||||||||||
Available-for-Sale Securities | |||||||||||||||||||||||||||||
Realized Gains | Other Income | 35 | (18 | ) | 17 | 99 | (51 | ) | 48 | ||||||||||||||||||||
Realized Losses | Other Deductions | (9 | ) | 4 | (5 | ) | (37 | ) | 18 | (19 | ) | ||||||||||||||||||
Other-Than-Temporary Impairments | Other-Than-Temporary Impairments | (3 | ) | 2 | (1 | ) | (7 | ) | 4 | (3 | ) | ||||||||||||||||||
Total | $ | 11 | $ | (7 | ) | $ | 4 | $ | 17 | $ | (13 | ) | $ | 4 | |||||||||||||||
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) to Income Statement | |||||||||||||||||||||||||||||
Power | Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||
30-Sep-13 | 30-Sep-13 | ||||||||||||||||||||||||||||
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 | Pre-Tax Amount | Tax (Expense) Benefit | After-Tax Amount | ||||||||||||||||||||||
Millions | |||||||||||||||||||||||||||||
Cash Flow Hedges | |||||||||||||||||||||||||||||
Energy Related Contracts | Operating Revenues | $ | 3 | $ | (1 | ) | $ | 2 | $ | 11 | $ | (4 | ) | $ | 7 | ||||||||||||||
Pension and OPEB Plans | |||||||||||||||||||||||||||||
Amortization of Prior Service (Cost) Credit | Operation and Maintenance Expense | 3 | (1 | ) | 2 | 7 | (3 | ) | 4 | ||||||||||||||||||||
Amortization of Actuarial Loss | Operation and Maintenance Expense | (17 | ) | 7 | (10 | ) | (49 | ) | 20 | (29 | ) | ||||||||||||||||||
Available-for-Sale Securities | |||||||||||||||||||||||||||||
Realized Gains | Other Income | 35 | (18 | ) | 17 | 95 | (49 | ) | 46 | ||||||||||||||||||||
Realized Losses | Other Deductions | (9 | ) | 4 | (5 | ) | (34 | ) | 17 | (17 | ) | ||||||||||||||||||
Other-Than-Temporary Impairments | Other-Than-Temporary Impairments | (3 | ) | 2 | (1 | ) | (7 | ) | 4 | (3 | ) | ||||||||||||||||||
Total | $ | 12 | $ | (7 | ) | $ | 5 | $ | 23 | $ | (15 | ) | $ | 8 | |||||||||||||||
Balance as of December 31, 2011 | Other Comprehensive Income (Loss) | Balance as of September 30, 2012 | |||||||||||||||||||||||||||
Nine Months Ended | |||||||||||||||||||||||||||||
30-Sep-12 | |||||||||||||||||||||||||||||
Power | PSE&G | Other | |||||||||||||||||||||||||||
Millions | |||||||||||||||||||||||||||||
Derivative Contracts | $ | 31 | $ | (21 | ) | $ | — | $ | 1 | $ | 11 | ||||||||||||||||||
Pension and OPEB Plans | (438 | ) | 21 | — | 2 | (415 | ) | ||||||||||||||||||||||
Available-for-Sale Securities | 70 | 11 | — | 1 | 82 | ||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | $ | (337 | ) | $ | 11 | $ | — | $ | 4 | $ | (322 | ) | |||||||||||||||||
Power [Member] | |||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | Accumulated Other Comprehensive Income (Loss), Net of Tax | ||||||||||||||||||||||||||||
Other Comprehensive Income (Loss) | |||||||||||||||||||||||||||||
PSEG | Three Months Ended September 30, 2013 | ||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | Derivative Contracts | Pension and OPEB Plans | Available-for -Sale Securities | Total | |||||||||||||||||||||||||
Millions | |||||||||||||||||||||||||||||
Balance as of June 30, 2013 | $ | 3 | $ | (466 | ) | $ | 101 | $ | (362 | ) | |||||||||||||||||||
Other Comprehensive Income before Reclassifications | 1 | — | 27 | 28 | |||||||||||||||||||||||||
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) | (2 | ) | 9 | (11 | ) | (4 | ) | ||||||||||||||||||||||
Net Current Period Other Comprehensive Income (Loss) | (1 | ) | 9 | 16 | 24 | ||||||||||||||||||||||||
Balance as of September 30, 2013 | $ | 2 | $ | (457 | ) | $ | 117 | $ | (338 | ) | |||||||||||||||||||
Other Comprehensive Income (Loss) | |||||||||||||||||||||||||||||
Power | Three Months Ended September 30, 2013 | ||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | Derivative Contracts | Pension and OPEB Plans | Available-for -Sale Securities | Total | |||||||||||||||||||||||||
Millions | |||||||||||||||||||||||||||||
Balance as of June 30, 2013 | $ | 4 | $ | (405 | ) | $ | 98 | $ | (303 | ) | |||||||||||||||||||
Other Comprehensive Income before Reclassifications | 1 | — | 28 | 29 | |||||||||||||||||||||||||
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) | (2 | ) | 8 | (11 | ) | (5 | ) | ||||||||||||||||||||||
Net Current Period Other Comprehensive Income (Loss) | (1 | ) | 8 | 17 | 24 | ||||||||||||||||||||||||
Balance as of September 30, 2013 | $ | 3 | $ | (397 | ) | $ | 115 | $ | (279 | ) | |||||||||||||||||||
Other Comprehensive Income (Loss) | |||||||||||||||||||||||||||||
PSEG | Nine Months Ended September 30, 2013 | ||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | Derivative Contracts | Pension and OPEB Plans | Available-for -Sale Securities | Total | |||||||||||||||||||||||||
Millions | |||||||||||||||||||||||||||||
Balance as of December 31, 2012 | $ | 7 | $ | (485 | ) | $ | 90 | $ | (388 | ) | |||||||||||||||||||
Other Comprehensive Income before Reclassifications | 1 | — | 53 | 54 | |||||||||||||||||||||||||
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) | (6 | ) | 28 | (26 | ) | (4 | ) | ||||||||||||||||||||||
Net Current Period Other Comprehensive Income (Loss) | (5 | ) | 28 | 27 | 50 | ||||||||||||||||||||||||
Balance as of September 30, 2013 | $ | 2 | $ | (457 | ) | $ | 117 | $ | (338 | ) | |||||||||||||||||||
Other Comprehensive Income (Loss) | |||||||||||||||||||||||||||||
Power | Nine Months Ended September 30, 2013 | ||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | Derivative Contracts | Pension and OPEB Plans | Available-for -Sale Securities | Total | |||||||||||||||||||||||||
Millions | |||||||||||||||||||||||||||||
Balance as of December 31, 2012 | $ | 9 | $ | (422 | ) | $ | 85 | $ | (328 | ) | |||||||||||||||||||
Other Comprehensive Income before Reclassifications | 1 | — | 56 | 57 | |||||||||||||||||||||||||
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) | (7 | ) | 25 | (26 | ) | (8 | ) | ||||||||||||||||||||||
Net Current Period Other Comprehensive Income (Loss) | (6 | ) | 25 | 30 | 49 | ||||||||||||||||||||||||
Balance as of September 30, 2013 | $ | 3 | $ | (397 | ) | $ | 115 | $ | (279 | ) | |||||||||||||||||||
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) to Income Statement | |||||||||||||||||||||||||||||
PSEG | Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||
30-Sep-13 | 30-Sep-13 | ||||||||||||||||||||||||||||
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 | Pre-Tax Amount | Tax (Expense) Benefit | After-Tax Amount | ||||||||||||||||||||||
Millions | |||||||||||||||||||||||||||||
Cash Flow Hedges | |||||||||||||||||||||||||||||
Energy Related Contracts | Operating Revenues | $ | 3 | $ | (1 | ) | $ | 2 | $ | 11 | $ | (4 | ) | $ | 7 | ||||||||||||||
Interest Rate Swaps | Interest Expense | — | — | — | (1 | ) | — | $ | (1 | ) | |||||||||||||||||||
Pension and OPEB Plans | |||||||||||||||||||||||||||||
Amortization of Prior Service (Cost) Credit | Operation and Maintenance Expense | 3 | (1 | ) | 2 | 8 | (3 | ) | 5 | ||||||||||||||||||||
Amortization of Actuarial Loss | Operation and Maintenance Expense | (18 | ) | 7 | (11 | ) | (56 | ) | 23 | (33 | ) | ||||||||||||||||||
Available-for-Sale Securities | |||||||||||||||||||||||||||||
Realized Gains | Other Income | 35 | (18 | ) | 17 | 99 | (51 | ) | 48 | ||||||||||||||||||||
Realized Losses | Other Deductions | (9 | ) | 4 | (5 | ) | (37 | ) | 18 | (19 | ) | ||||||||||||||||||
Other-Than-Temporary Impairments | Other-Than-Temporary Impairments | (3 | ) | 2 | (1 | ) | (7 | ) | 4 | (3 | ) | ||||||||||||||||||
Total | $ | 11 | $ | (7 | ) | $ | 4 | $ | 17 | $ | (13 | ) | $ | 4 | |||||||||||||||
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) to Income Statement | |||||||||||||||||||||||||||||
Power | Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||
30-Sep-13 | 30-Sep-13 | ||||||||||||||||||||||||||||
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 | Pre-Tax Amount | Tax (Expense) Benefit | After-Tax Amount | ||||||||||||||||||||||
Millions | |||||||||||||||||||||||||||||
Cash Flow Hedges | |||||||||||||||||||||||||||||
Energy Related Contracts | Operating Revenues | $ | 3 | $ | (1 | ) | $ | 2 | $ | 11 | $ | (4 | ) | $ | 7 | ||||||||||||||
Pension and OPEB Plans | |||||||||||||||||||||||||||||
Amortization of Prior Service (Cost) Credit | Operation and Maintenance Expense | 3 | (1 | ) | 2 | 7 | (3 | ) | 4 | ||||||||||||||||||||
Amortization of Actuarial Loss | Operation and Maintenance Expense | (17 | ) | 7 | (10 | ) | (49 | ) | 20 | (29 | ) | ||||||||||||||||||
Available-for-Sale Securities | |||||||||||||||||||||||||||||
Realized Gains | Other Income | 35 | (18 | ) | 17 | 95 | (49 | ) | 46 | ||||||||||||||||||||
Realized Losses | Other Deductions | (9 | ) | 4 | (5 | ) | (34 | ) | 17 | (17 | ) | ||||||||||||||||||
Other-Than-Temporary Impairments | Other-Than-Temporary Impairments | (3 | ) | 2 | (1 | ) | (7 | ) | 4 | (3 | ) | ||||||||||||||||||
Total | $ | 12 | $ | (7 | ) | $ | 5 | $ | 23 | $ | (15 | ) | $ | 8 | |||||||||||||||
Balance as of December 31, 2011 | Other Comprehensive Income (Loss) | Balance as of September 30, 2012 | |||||||||||||||||||||||||||
Nine Months Ended | |||||||||||||||||||||||||||||
30-Sep-12 | |||||||||||||||||||||||||||||
Power | PSE&G | Other | |||||||||||||||||||||||||||
Millions | |||||||||||||||||||||||||||||
Derivative Contracts | $ | 31 | $ | (21 | ) | $ | — | $ | 1 | $ | 11 | ||||||||||||||||||
Pension and OPEB Plans | (438 | ) | 21 | — | 2 | (415 | ) | ||||||||||||||||||||||
Available-for-Sale Securities | 70 | 11 | — | 1 | 82 | ||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | $ | (337 | ) | $ | 11 | $ | — | $ | 4 | $ | (322 | ) | |||||||||||||||||
PSE And G [Member] | |||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | Accumulated Other Comprehensive Income (Loss), Net of Tax | ||||||||||||||||||||||||||||
Other Comprehensive Income (Loss) | |||||||||||||||||||||||||||||
PSEG | Three Months Ended September 30, 2013 | ||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | Derivative Contracts | Pension and OPEB Plans | Available-for -Sale Securities | Total | |||||||||||||||||||||||||
Millions | |||||||||||||||||||||||||||||
Balance as of June 30, 2013 | $ | 3 | $ | (466 | ) | $ | 101 | $ | (362 | ) | |||||||||||||||||||
Other Comprehensive Income before Reclassifications | 1 | — | 27 | 28 | |||||||||||||||||||||||||
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) | (2 | ) | 9 | (11 | ) | (4 | ) | ||||||||||||||||||||||
Net Current Period Other Comprehensive Income (Loss) | (1 | ) | 9 | 16 | 24 | ||||||||||||||||||||||||
Balance as of September 30, 2013 | $ | 2 | $ | (457 | ) | $ | 117 | $ | (338 | ) | |||||||||||||||||||
Other Comprehensive Income (Loss) | |||||||||||||||||||||||||||||
Power | Three Months Ended September 30, 2013 | ||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | Derivative Contracts | Pension and OPEB Plans | Available-for -Sale Securities | Total | |||||||||||||||||||||||||
Millions | |||||||||||||||||||||||||||||
Balance as of June 30, 2013 | $ | 4 | $ | (405 | ) | $ | 98 | $ | (303 | ) | |||||||||||||||||||
Other Comprehensive Income before Reclassifications | 1 | — | 28 | 29 | |||||||||||||||||||||||||
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) | (2 | ) | 8 | (11 | ) | (5 | ) | ||||||||||||||||||||||
Net Current Period Other Comprehensive Income (Loss) | (1 | ) | 8 | 17 | 24 | ||||||||||||||||||||||||
Balance as of September 30, 2013 | $ | 3 | $ | (397 | ) | $ | 115 | $ | (279 | ) | |||||||||||||||||||
Other Comprehensive Income (Loss) | |||||||||||||||||||||||||||||
PSEG | Nine Months Ended September 30, 2013 | ||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | Derivative Contracts | Pension and OPEB Plans | Available-for -Sale Securities | Total | |||||||||||||||||||||||||
Millions | |||||||||||||||||||||||||||||
Balance as of December 31, 2012 | $ | 7 | $ | (485 | ) | $ | 90 | $ | (388 | ) | |||||||||||||||||||
Other Comprehensive Income before Reclassifications | 1 | — | 53 | 54 | |||||||||||||||||||||||||
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) | (6 | ) | 28 | (26 | ) | (4 | ) | ||||||||||||||||||||||
Net Current Period Other Comprehensive Income (Loss) | (5 | ) | 28 | 27 | 50 | ||||||||||||||||||||||||
Balance as of September 30, 2013 | $ | 2 | $ | (457 | ) | $ | 117 | $ | (338 | ) | |||||||||||||||||||
Other Comprehensive Income (Loss) | |||||||||||||||||||||||||||||
Power | Nine Months Ended September 30, 2013 | ||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | Derivative Contracts | Pension and OPEB Plans | Available-for -Sale Securities | Total | |||||||||||||||||||||||||
Millions | |||||||||||||||||||||||||||||
Balance as of December 31, 2012 | $ | 9 | $ | (422 | ) | $ | 85 | $ | (328 | ) | |||||||||||||||||||
Other Comprehensive Income before Reclassifications | 1 | — | 56 | 57 | |||||||||||||||||||||||||
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) | (7 | ) | 25 | (26 | ) | (8 | ) | ||||||||||||||||||||||
Net Current Period Other Comprehensive Income (Loss) | (6 | ) | 25 | 30 | 49 | ||||||||||||||||||||||||
Balance as of September 30, 2013 | $ | 3 | $ | (397 | ) | $ | 115 | $ | (279 | ) | |||||||||||||||||||
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) to Income Statement | |||||||||||||||||||||||||||||
PSEG | Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||
30-Sep-13 | 30-Sep-13 | ||||||||||||||||||||||||||||
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 | Pre-Tax Amount | Tax (Expense) Benefit | After-Tax Amount | ||||||||||||||||||||||
Millions | |||||||||||||||||||||||||||||
Cash Flow Hedges | |||||||||||||||||||||||||||||
Energy Related Contracts | Operating Revenues | $ | 3 | $ | (1 | ) | $ | 2 | $ | 11 | $ | (4 | ) | $ | 7 | ||||||||||||||
Interest Rate Swaps | Interest Expense | — | — | — | (1 | ) | — | $ | (1 | ) | |||||||||||||||||||
Pension and OPEB Plans | |||||||||||||||||||||||||||||
Amortization of Prior Service (Cost) Credit | Operation and Maintenance Expense | 3 | (1 | ) | 2 | 8 | (3 | ) | 5 | ||||||||||||||||||||
Amortization of Actuarial Loss | Operation and Maintenance Expense | (18 | ) | 7 | (11 | ) | (56 | ) | 23 | (33 | ) | ||||||||||||||||||
Available-for-Sale Securities | |||||||||||||||||||||||||||||
Realized Gains | Other Income | 35 | (18 | ) | 17 | 99 | (51 | ) | 48 | ||||||||||||||||||||
Realized Losses | Other Deductions | (9 | ) | 4 | (5 | ) | (37 | ) | 18 | (19 | ) | ||||||||||||||||||
Other-Than-Temporary Impairments | Other-Than-Temporary Impairments | (3 | ) | 2 | (1 | ) | (7 | ) | 4 | (3 | ) | ||||||||||||||||||
Total | $ | 11 | $ | (7 | ) | $ | 4 | $ | 17 | $ | (13 | ) | $ | 4 | |||||||||||||||
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) to Income Statement | |||||||||||||||||||||||||||||
Power | Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||
30-Sep-13 | 30-Sep-13 | ||||||||||||||||||||||||||||
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 | Pre-Tax Amount | Tax (Expense) Benefit | After-Tax Amount | ||||||||||||||||||||||
Millions | |||||||||||||||||||||||||||||
Cash Flow Hedges | |||||||||||||||||||||||||||||
Energy Related Contracts | Operating Revenues | $ | 3 | $ | (1 | ) | $ | 2 | $ | 11 | $ | (4 | ) | $ | 7 | ||||||||||||||
Pension and OPEB Plans | |||||||||||||||||||||||||||||
Amortization of Prior Service (Cost) Credit | Operation and Maintenance Expense | 3 | (1 | ) | 2 | 7 | (3 | ) | 4 | ||||||||||||||||||||
Amortization of Actuarial Loss | Operation and Maintenance Expense | (17 | ) | 7 | (10 | ) | (49 | ) | 20 | (29 | ) | ||||||||||||||||||
Available-for-Sale Securities | |||||||||||||||||||||||||||||
Realized Gains | Other Income | 35 | (18 | ) | 17 | 95 | (49 | ) | 46 | ||||||||||||||||||||
Realized Losses | Other Deductions | (9 | ) | 4 | (5 | ) | (34 | ) | 17 | (17 | ) | ||||||||||||||||||
Other-Than-Temporary Impairments | Other-Than-Temporary Impairments | (3 | ) | 2 | (1 | ) | (7 | ) | 4 | (3 | ) | ||||||||||||||||||
Total | $ | 12 | $ | (7 | ) | $ | 5 | $ | 23 | $ | (15 | ) | $ | 8 | |||||||||||||||
Balance as of December 31, 2011 | Other Comprehensive Income (Loss) | Balance as of September 30, 2012 | |||||||||||||||||||||||||||
Nine Months Ended | |||||||||||||||||||||||||||||
30-Sep-12 | |||||||||||||||||||||||||||||
Power | PSE&G | Other | |||||||||||||||||||||||||||
Millions | |||||||||||||||||||||||||||||
Derivative Contracts | $ | 31 | $ | (21 | ) | $ | — | $ | 1 | $ | 11 | ||||||||||||||||||
Pension and OPEB Plans | (438 | ) | 21 | — | 2 | (415 | ) | ||||||||||||||||||||||
Available-for-Sale Securities | 70 | 11 | — | 1 | 82 | ||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | $ | (337 | ) | $ | 11 | $ | — | $ | 4 | $ | (322 | ) | |||||||||||||||||
Earnings_Per_Share_EPS_and_Div
Earnings Per Share (EPS) and Dividends | 9 Months Ended | |||||||||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||||||||
Text Block [Abstract] | ||||||||||||||||||||||||||||||||||
Earnings Per Share (EPS) and Dividends | Earnings Per Share (EPS) and Dividends | |||||||||||||||||||||||||||||||||
Diluted EPS is calculated by dividing Net Income by the weighted average number of shares of common stock outstanding, including shares issuable upon exercise of stock options outstanding or vesting of restricted stock awards granted under PSEG's stock compensation plans and upon payment of performance units or restricted stock units. The following table shows the effect of these stock options, performance units and restricted stock units on the weighted average number of shares outstanding used in calculating diluted EPS: | ||||||||||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||||
Basic | Diluted | Basic | Diluted | Basic | Diluted | Basic | Diluted | |||||||||||||||||||||||||||
EPS Numerator (Millions) | ||||||||||||||||||||||||||||||||||
Net Income | $ | 390 | $ | 390 | $ | 347 | $ | 347 | $ | 1,043 | $ | 1,043 | $ | 1,051 | $ | 1,051 | ||||||||||||||||||
EPS Denominator (Thousands) | ||||||||||||||||||||||||||||||||||
Weighted Average Common Shares Outstanding | 505,858 | 505,858 | 505,914 | 505,914 | 505,900 | 505,900 | 505,942 | 505,942 | ||||||||||||||||||||||||||
Effect of Stock Based Compensation Awards | — | 1,836 | — | 1,197 | — | 1,533 | — | 1,095 | ||||||||||||||||||||||||||
Total Shares | 505,858 | 507,694 | 505,914 | 507,111 | 505,900 | 507,433 | 505,942 | 507,037 | ||||||||||||||||||||||||||
EPS | ||||||||||||||||||||||||||||||||||
Net Income | $ | 0.77 | $ | 0.77 | $ | 0.69 | $ | 0.68 | $ | 2.06 | $ | 2.06 | $ | 2.08 | $ | 2.07 | ||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||||||||||||
Dividend Payments on Common Stock | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||||||
Per Share | $ | 0.36 | $ | 0.355 | $ | 1.08 | $ | 1.065 | ||||||||||||||||||||||||||
in Millions | $ | 182 | $ | 180 | $ | 546 | $ | 538 | ||||||||||||||||||||||||||
Financial_Information_By_Busin
Financial Information By Business Segments | 9 Months Ended | |||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||
Financial Information By Business Segments | Financial Information by Business Segments | |||||||||||||||||||||
Power | PSE&G | Energy | Other (A) | Consolidated | ||||||||||||||||||
Holdings | ||||||||||||||||||||||
Millions | ||||||||||||||||||||||
Three Months Ended September 30, 2013 | ||||||||||||||||||||||
Total Operating Revenues | $ | 1,169 | $ | 1,666 | $ | 8 | $ | (289 | ) | $ | 2,554 | |||||||||||
Income (Loss) From Continuing Operations | 221 | 168 | (3 | ) | 4 | 390 | ||||||||||||||||
Net Income (Loss) | 221 | 168 | (3 | ) | 4 | 390 | ||||||||||||||||
Segment Earnings (Loss) | 221 | 168 | (3 | ) | 4 | 390 | ||||||||||||||||
Gross Additions to Long-Lived Assets | 197 | 480 | 13 | 6 | 696 | |||||||||||||||||
Three Months Ended September 30, 2012 | ||||||||||||||||||||||
Total Operating Revenues | $ | 1,038 | $ | 1,683 | $ | 15 | $ | (334 | ) | $ | 2,402 | |||||||||||
Income (Loss) From Continuing Operations | 181 | 155 | 7 | 4 | 347 | |||||||||||||||||
Net Income (Loss) | 181 | 155 | 7 | 4 | 347 | |||||||||||||||||
Segment Earnings (Loss) | 181 | 155 | 7 | 4 | 347 | |||||||||||||||||
Gross Additions to Long-Lived Assets | 149 | 499 | 30 | 11 | 689 | |||||||||||||||||
Nine Months Ended September 30, 2013 | ||||||||||||||||||||||
Total Operating Revenues | $ | 3,806 | $ | 5,084 | $ | 42 | $ | (1,282 | ) | $ | 7,650 | |||||||||||
Income (Loss) From Continuing Operations | 562 | 468 | 1 | 12 | 1,043 | |||||||||||||||||
Net Income (Loss) | 562 | 468 | 1 | 12 | 1,043 | |||||||||||||||||
Segment Earnings (Loss) | 562 | 468 | 1 | 12 | 1,043 | |||||||||||||||||
Gross Additions to Long-Lived Assets | 419 | 1,628 | 40 | 15 | 2,102 | |||||||||||||||||
Nine Months Ended September 30, 2012 | ||||||||||||||||||||||
Total Operating Revenues | $ | 3,584 | $ | 5,029 | $ | 49 | $ | (1,287 | ) | $ | 7,375 | |||||||||||
Income (Loss) From Continuing Operations | 538 | 453 | 49 | 11 | 1,051 | |||||||||||||||||
Net Income (Loss) | 538 | 453 | 49 | 11 | 1,051 | |||||||||||||||||
Segment Earnings (Loss) | 538 | 453 | 49 | 11 | 1,051 | |||||||||||||||||
Gross Additions to Long-Lived Assets | 493 | 1,369 | 85 | 22 | 1,969 | |||||||||||||||||
As of September 30, 2013 | ||||||||||||||||||||||
Total Assets | $ | 10,721 | $ | 20,330 | $ | 1,448 | $ | 111 | $ | 32,610 | ||||||||||||
Investments in Equity Method Subsidiaries | $ | 40 | $ | — | $ | 100 | $ | — | $ | 140 | ||||||||||||
As of December 31, 2012 | ||||||||||||||||||||||
Total Assets | $ | 11,032 | $ | 19,223 | $ | 1,454 | $ | 16 | $ | 31,725 | ||||||||||||
Investments in Equity Method Subsidiaries | $ | 40 | $ | — | $ | 94 | $ | — | $ | 134 | ||||||||||||
(A) | Other activities include amounts applicable to PSEG (as parent company), Services and intercompany eliminations, primarily relating to intercompany transactions between Power and PSE&G. No gains or losses are recorded on any intercompany transactions; rather, all intercompany transactions are priced in accordance with applicable regulations, including affiliate pricing rules, or in the case of the BGS and BGSS contracts between Power and PSE&G, at rates prescribed by the BPU. For a further discussion of the intercompany transactions between Power and PSE&G, see Note 18. Related-Party Transactions. | |||||||||||||||||||||
Power [Member] | ||||||||||||||||||||||
Financial Information By Business Segments | Financial Information by Business Segments | |||||||||||||||||||||
Power | PSE&G | Energy | Other (A) | Consolidated | ||||||||||||||||||
Holdings | ||||||||||||||||||||||
Millions | ||||||||||||||||||||||
Three Months Ended September 30, 2013 | ||||||||||||||||||||||
Total Operating Revenues | $ | 1,169 | $ | 1,666 | $ | 8 | $ | (289 | ) | $ | 2,554 | |||||||||||
Income (Loss) From Continuing Operations | 221 | 168 | (3 | ) | 4 | 390 | ||||||||||||||||
Net Income (Loss) | 221 | 168 | (3 | ) | 4 | 390 | ||||||||||||||||
Segment Earnings (Loss) | 221 | 168 | (3 | ) | 4 | 390 | ||||||||||||||||
Gross Additions to Long-Lived Assets | 197 | 480 | 13 | 6 | 696 | |||||||||||||||||
Three Months Ended September 30, 2012 | ||||||||||||||||||||||
Total Operating Revenues | $ | 1,038 | $ | 1,683 | $ | 15 | $ | (334 | ) | $ | 2,402 | |||||||||||
Income (Loss) From Continuing Operations | 181 | 155 | 7 | 4 | 347 | |||||||||||||||||
Net Income (Loss) | 181 | 155 | 7 | 4 | 347 | |||||||||||||||||
Segment Earnings (Loss) | 181 | 155 | 7 | 4 | 347 | |||||||||||||||||
Gross Additions to Long-Lived Assets | 149 | 499 | 30 | 11 | 689 | |||||||||||||||||
Nine Months Ended September 30, 2013 | ||||||||||||||||||||||
Total Operating Revenues | $ | 3,806 | $ | 5,084 | $ | 42 | $ | (1,282 | ) | $ | 7,650 | |||||||||||
Income (Loss) From Continuing Operations | 562 | 468 | 1 | 12 | 1,043 | |||||||||||||||||
Net Income (Loss) | 562 | 468 | 1 | 12 | 1,043 | |||||||||||||||||
Segment Earnings (Loss) | 562 | 468 | 1 | 12 | 1,043 | |||||||||||||||||
Gross Additions to Long-Lived Assets | 419 | 1,628 | 40 | 15 | 2,102 | |||||||||||||||||
Nine Months Ended September 30, 2012 | ||||||||||||||||||||||
Total Operating Revenues | $ | 3,584 | $ | 5,029 | $ | 49 | $ | (1,287 | ) | $ | 7,375 | |||||||||||
Income (Loss) From Continuing Operations | 538 | 453 | 49 | 11 | 1,051 | |||||||||||||||||
Net Income (Loss) | 538 | 453 | 49 | 11 | 1,051 | |||||||||||||||||
Segment Earnings (Loss) | 538 | 453 | 49 | 11 | 1,051 | |||||||||||||||||
Gross Additions to Long-Lived Assets | 493 | 1,369 | 85 | 22 | 1,969 | |||||||||||||||||
As of September 30, 2013 | ||||||||||||||||||||||
Total Assets | $ | 10,721 | $ | 20,330 | $ | 1,448 | $ | 111 | $ | 32,610 | ||||||||||||
Investments in Equity Method Subsidiaries | $ | 40 | $ | — | $ | 100 | $ | — | $ | 140 | ||||||||||||
As of December 31, 2012 | ||||||||||||||||||||||
Total Assets | $ | 11,032 | $ | 19,223 | $ | 1,454 | $ | 16 | $ | 31,725 | ||||||||||||
Investments in Equity Method Subsidiaries | $ | 40 | $ | — | $ | 94 | $ | — | $ | 134 | ||||||||||||
(A) | Other activities include amounts applicable to PSEG (as parent company), Services and intercompany eliminations, primarily relating to intercompany transactions between Power and PSE&G. No gains or losses are recorded on any intercompany transactions; rather, all intercompany transactions are priced in accordance with applicable regulations, including affiliate pricing rules, or in the case of the BGS and BGSS contracts between Power and PSE&G, at rates prescribed by the BPU. For a further discussion of the intercompany transactions between Power and PSE&G, see Note 18. Related-Party Transactions. | |||||||||||||||||||||
PSE And G [Member] | ||||||||||||||||||||||
Financial Information By Business Segments | Financial Information by Business Segments | |||||||||||||||||||||
Power | PSE&G | Energy | Other (A) | Consolidated | ||||||||||||||||||
Holdings | ||||||||||||||||||||||
Millions | ||||||||||||||||||||||
Three Months Ended September 30, 2013 | ||||||||||||||||||||||
Total Operating Revenues | $ | 1,169 | $ | 1,666 | $ | 8 | $ | (289 | ) | $ | 2,554 | |||||||||||
Income (Loss) From Continuing Operations | 221 | 168 | (3 | ) | 4 | 390 | ||||||||||||||||
Net Income (Loss) | 221 | 168 | (3 | ) | 4 | 390 | ||||||||||||||||
Segment Earnings (Loss) | 221 | 168 | (3 | ) | 4 | 390 | ||||||||||||||||
Gross Additions to Long-Lived Assets | 197 | 480 | 13 | 6 | 696 | |||||||||||||||||
Three Months Ended September 30, 2012 | ||||||||||||||||||||||
Total Operating Revenues | $ | 1,038 | $ | 1,683 | $ | 15 | $ | (334 | ) | $ | 2,402 | |||||||||||
Income (Loss) From Continuing Operations | 181 | 155 | 7 | 4 | 347 | |||||||||||||||||
Net Income (Loss) | 181 | 155 | 7 | 4 | 347 | |||||||||||||||||
Segment Earnings (Loss) | 181 | 155 | 7 | 4 | 347 | |||||||||||||||||
Gross Additions to Long-Lived Assets | 149 | 499 | 30 | 11 | 689 | |||||||||||||||||
Nine Months Ended September 30, 2013 | ||||||||||||||||||||||
Total Operating Revenues | $ | 3,806 | $ | 5,084 | $ | 42 | $ | (1,282 | ) | $ | 7,650 | |||||||||||
Income (Loss) From Continuing Operations | 562 | 468 | 1 | 12 | 1,043 | |||||||||||||||||
Net Income (Loss) | 562 | 468 | 1 | 12 | 1,043 | |||||||||||||||||
Segment Earnings (Loss) | 562 | 468 | 1 | 12 | 1,043 | |||||||||||||||||
Gross Additions to Long-Lived Assets | 419 | 1,628 | 40 | 15 | 2,102 | |||||||||||||||||
Nine Months Ended September 30, 2012 | ||||||||||||||||||||||
Total Operating Revenues | $ | 3,584 | $ | 5,029 | $ | 49 | $ | (1,287 | ) | $ | 7,375 | |||||||||||
Income (Loss) From Continuing Operations | 538 | 453 | 49 | 11 | 1,051 | |||||||||||||||||
Net Income (Loss) | 538 | 453 | 49 | 11 | 1,051 | |||||||||||||||||
Segment Earnings (Loss) | 538 | 453 | 49 | 11 | 1,051 | |||||||||||||||||
Gross Additions to Long-Lived Assets | 493 | 1,369 | 85 | 22 | 1,969 | |||||||||||||||||
As of September 30, 2013 | ||||||||||||||||||||||
Total Assets | $ | 10,721 | $ | 20,330 | $ | 1,448 | $ | 111 | $ | 32,610 | ||||||||||||
Investments in Equity Method Subsidiaries | $ | 40 | $ | — | $ | 100 | $ | — | $ | 140 | ||||||||||||
As of December 31, 2012 | ||||||||||||||||||||||
Total Assets | $ | 11,032 | $ | 19,223 | $ | 1,454 | $ | 16 | $ | 31,725 | ||||||||||||
Investments in Equity Method Subsidiaries | $ | 40 | $ | — | $ | 94 | $ | — | $ | 134 | ||||||||||||
(A) | Other activities include amounts applicable to PSEG (as parent company), Services and intercompany eliminations, primarily relating to intercompany transactions between Power and PSE&G. No gains or losses are recorded on any intercompany transactions; rather, all intercompany transactions are priced in accordance with applicable regulations, including affiliate pricing rules, or in the case of the BGS and BGSS contracts between Power and PSE&G, at rates prescribed by the BPU. For a further discussion of the intercompany transactions between Power and PSE&G, see Note 18. Related-Party Transactions. |
RelatedParty_Transactions
Related-Party Transactions | 9 Months Ended | |||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||
Related-Party Transactions | Related-Party Transactions | |||||||||||||||||
The following discussion relates to intercompany transactions, the majority of which are eliminated during the PSEG consolidation process in accordance with GAAP. | ||||||||||||||||||
Power | ||||||||||||||||||
The financial statements for Power include transactions with related parties presented as follows: | ||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||
September 30, | September 30, | |||||||||||||||||
Related-Party Transactions | 2013 | 2012 | 2013 | 2012 | ||||||||||||||
Millions | ||||||||||||||||||
Revenue from Affiliates: | ||||||||||||||||||
Billings to PSE&G through BGSS (A) | $ | 48 | $ | 67 | $ | 654 | $ | 630 | ||||||||||
Billings to PSE&G through BGS (A) | 236 | 258 | 621 | 639 | ||||||||||||||
Total Revenue from Affiliates | $ | 284 | $ | 325 | $ | 1,275 | $ | 1,269 | ||||||||||
Expense Billings from Affiliates: | ||||||||||||||||||
Administrative Billings from Services (B) | $ | (43 | ) | $ | (38 | ) | $ | (131 | ) | $ | (110 | ) | ||||||
Total Expense Billings from Affiliates | $ | (43 | ) | $ | (38 | ) | $ | (131 | ) | $ | (110 | ) | ||||||
As of | As of | |||||||||||||||||
Related-Party Transactions | 30-Sep-13 | 31-Dec-12 | ||||||||||||||||
Millions | ||||||||||||||||||
Receivables from PSE&G through BGS and BGSS Contracts (A) | $ | 87 | $ | 238 | ||||||||||||||
Receivables from PSE&G Related to Gas Supply Hedges for BGSS (A) | 28 | 27 | ||||||||||||||||
Receivable from (Payable to) Services (B) | (26 | ) | (31 | ) | ||||||||||||||
Tax Receivable from (Payable to) PSEG (C) | (54 | ) | 111 | |||||||||||||||
Receivable from (Payable to) PSEG | (1 | ) | (5 | ) | ||||||||||||||
Accounts Receivable (Payable)—Affiliated Companies, net | $ | 34 | $ | 340 | ||||||||||||||
Short-Term Loan to Affiliate (Demand Note to PSEG) (D) | $ | 417 | $ | 574 | ||||||||||||||
Working Capital Advances to Services (E) | $ | 17 | $ | 17 | ||||||||||||||
Long-Term Accrued Taxes Receivable (Payable) (C) | $ | (50 | ) | $ | (50 | ) | ||||||||||||
PSE&G | ||||||||||||||||||
The financial statements for PSE&G include transactions with related parties presented as follows: | ||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||
September 30, | September 30, | |||||||||||||||||
Related-Party Transactions | 2013 | 2012 | 2013 | 2012 | ||||||||||||||
Millions | ||||||||||||||||||
Expense Billings from Affiliates: | ||||||||||||||||||
Billings from Power through BGSS (A) | $ | (48 | ) | $ | (67 | ) | $ | (654 | ) | $ | (630 | ) | ||||||
Billings from Power through BGS (A) | (236 | ) | (258 | ) | (621 | ) | (639 | ) | ||||||||||
Administrative Billings from Services (B) | (61 | ) | (58 | ) | (184 | ) | (165 | ) | ||||||||||
Total Expense Billings from Affiliates | $ | (345 | ) | $ | (383 | ) | $ | (1,459 | ) | $ | (1,434 | ) | ||||||
As of | As of | |||||||||||||||||
Related-Party Transactions | 30-Sep-13 | 31-Dec-12 | ||||||||||||||||
Millions | ||||||||||||||||||
Payable to Power through BGS and BGSS Contracts (A) | $ | (87 | ) | $ | (238 | ) | ||||||||||||
Payable to Power Related to Gas Supply Hedges for BGSS (A) | (28 | ) | (27 | ) | ||||||||||||||
Payable to Power for SREC Liability (F) | — | (7 | ) | |||||||||||||||
Receivable from (Payable to) Services (B) | (58 | ) | (65 | ) | ||||||||||||||
Tax Receivable from (Payable to) PSEG (C) | 263 | 256 | ||||||||||||||||
Receivable from (Payable to) PSEG | 3 | 6 | ||||||||||||||||
Receivable from Energy Holdings | 1 | 2 | ||||||||||||||||
Accounts Receivable (Payable)—Affiliated Companies, net | $ | 94 | $ | (73 | ) | |||||||||||||
Working Capital Advances to Services (E) | $ | 33 | $ | 33 | ||||||||||||||
Long-Term Accrued Taxes Receivable (Payable) (C) | $ | (48 | ) | $ | (32 | ) | ||||||||||||
(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. | |||||||||||||||||
(B) | Services provides and bills administrative services to Power and PSE&G at cost. In addition, Power and PSE&G 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) | 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. | |||||||||||||||||
(E) | Power and PSE&G have advanced working capital to Services. The amounts are included in Other Noncurrent Assets on Power’s and PSE&G’s Condensed Consolidated Balance Sheets. | |||||||||||||||||
(F) | Pursuant to a 2008 BPU Order, certain BGS suppliers, including Power, would be reimbursed for the cost they incurred above $300 per Solar Renewable Energy Certificate (SREC) or per Solar Alternative Compliance Payment (SACP) during the period June 1, 2008 through May 31, 2010 and such excess cost would be passed onto ratepayers. In accordance with a Stipulation of Settlement approved by the BPU in a December 2012 Order describing the mechanism for BGS suppliers to recover these costs, PSE&G, as a New Jersey EDC, estimated and accrued a total liability for the excess SREC cost expected to be recovered from ratepayers of $17 million, including approximately $7 million for Power’s share which was included in PSE&G’s Accounts Receivable (Payable)-Affiliated Companies, as of December 31, 2012. Under current accounting guidance, Power was unable to record the related intercompany receivable on its Condensed Consolidated Balance Sheet until the BPU issued an Order approving such payments. As a result, PSE&G’s liability to Power was not eliminated in consolidation and was included in Other Current Liabilities on PSEG’s Condensed Consolidated Balance Sheet as of December 31, 2012. In May 2013, the BPU issued an Order approving the BGS payments for these SRECs. This Order was not appealed and went into effect in July 2013. As a result, Power recorded its $9 million then outstanding receivable from PSE&G. In August 2013, PSE&G reimbursed Power and its other BGS suppliers for the excess SREC costs. | |||||||||||||||||
Power [Member] | ||||||||||||||||||
Related-Party Transactions | Related-Party Transactions | |||||||||||||||||
The following discussion relates to intercompany transactions, the majority of which are eliminated during the PSEG consolidation process in accordance with GAAP. | ||||||||||||||||||
Power | ||||||||||||||||||
The financial statements for Power include transactions with related parties presented as follows: | ||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||
September 30, | September 30, | |||||||||||||||||
Related-Party Transactions | 2013 | 2012 | 2013 | 2012 | ||||||||||||||
Millions | ||||||||||||||||||
Revenue from Affiliates: | ||||||||||||||||||
Billings to PSE&G through BGSS (A) | $ | 48 | $ | 67 | $ | 654 | $ | 630 | ||||||||||
Billings to PSE&G through BGS (A) | 236 | 258 | 621 | 639 | ||||||||||||||
Total Revenue from Affiliates | $ | 284 | $ | 325 | $ | 1,275 | $ | 1,269 | ||||||||||
Expense Billings from Affiliates: | ||||||||||||||||||
Administrative Billings from Services (B) | $ | (43 | ) | $ | (38 | ) | $ | (131 | ) | $ | (110 | ) | ||||||
Total Expense Billings from Affiliates | $ | (43 | ) | $ | (38 | ) | $ | (131 | ) | $ | (110 | ) | ||||||
As of | As of | |||||||||||||||||
Related-Party Transactions | 30-Sep-13 | 31-Dec-12 | ||||||||||||||||
Millions | ||||||||||||||||||
Receivables from PSE&G through BGS and BGSS Contracts (A) | $ | 87 | $ | 238 | ||||||||||||||
Receivables from PSE&G Related to Gas Supply Hedges for BGSS (A) | 28 | 27 | ||||||||||||||||
Receivable from (Payable to) Services (B) | (26 | ) | (31 | ) | ||||||||||||||
Tax Receivable from (Payable to) PSEG (C) | (54 | ) | 111 | |||||||||||||||
Receivable from (Payable to) PSEG | (1 | ) | (5 | ) | ||||||||||||||
Accounts Receivable (Payable)—Affiliated Companies, net | $ | 34 | $ | 340 | ||||||||||||||
Short-Term Loan to Affiliate (Demand Note to PSEG) (D) | $ | 417 | $ | 574 | ||||||||||||||
Working Capital Advances to Services (E) | $ | 17 | $ | 17 | ||||||||||||||
Long-Term Accrued Taxes Receivable (Payable) (C) | $ | (50 | ) | $ | (50 | ) | ||||||||||||
PSE&G | ||||||||||||||||||
The financial statements for PSE&G include transactions with related parties presented as follows: | ||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||
September 30, | September 30, | |||||||||||||||||
Related-Party Transactions | 2013 | 2012 | 2013 | 2012 | ||||||||||||||
Millions | ||||||||||||||||||
Expense Billings from Affiliates: | ||||||||||||||||||
Billings from Power through BGSS (A) | $ | (48 | ) | $ | (67 | ) | $ | (654 | ) | $ | (630 | ) | ||||||
Billings from Power through BGS (A) | (236 | ) | (258 | ) | (621 | ) | (639 | ) | ||||||||||
Administrative Billings from Services (B) | (61 | ) | (58 | ) | (184 | ) | (165 | ) | ||||||||||
Total Expense Billings from Affiliates | $ | (345 | ) | $ | (383 | ) | $ | (1,459 | ) | $ | (1,434 | ) | ||||||
As of | As of | |||||||||||||||||
Related-Party Transactions | 30-Sep-13 | 31-Dec-12 | ||||||||||||||||
Millions | ||||||||||||||||||
Payable to Power through BGS and BGSS Contracts (A) | $ | (87 | ) | $ | (238 | ) | ||||||||||||
Payable to Power Related to Gas Supply Hedges for BGSS (A) | (28 | ) | (27 | ) | ||||||||||||||
Payable to Power for SREC Liability (F) | — | (7 | ) | |||||||||||||||
Receivable from (Payable to) Services (B) | (58 | ) | (65 | ) | ||||||||||||||
Tax Receivable from (Payable to) PSEG (C) | 263 | 256 | ||||||||||||||||
Receivable from (Payable to) PSEG | 3 | 6 | ||||||||||||||||
Receivable from Energy Holdings | 1 | 2 | ||||||||||||||||
Accounts Receivable (Payable)—Affiliated Companies, net | $ | 94 | $ | (73 | ) | |||||||||||||
Working Capital Advances to Services (E) | $ | 33 | $ | 33 | ||||||||||||||
Long-Term Accrued Taxes Receivable (Payable) (C) | $ | (48 | ) | $ | (32 | ) | ||||||||||||
(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. | |||||||||||||||||
(B) | Services provides and bills administrative services to Power and PSE&G at cost. In addition, Power and PSE&G 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) | 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. | |||||||||||||||||
(E) | Power and PSE&G have advanced working capital to Services. The amounts are included in Other Noncurrent Assets on Power’s and PSE&G’s Condensed Consolidated Balance Sheets. | |||||||||||||||||
(F) | Pursuant to a 2008 BPU Order, certain BGS suppliers, including Power, would be reimbursed for the cost they incurred above $300 per Solar Renewable Energy Certificate (SREC) or per Solar Alternative Compliance Payment (SACP) during the period June 1, 2008 through May 31, 2010 and such excess cost would be passed onto ratepayers. In accordance with a Stipulation of Settlement approved by the BPU in a December 2012 Order describing the mechanism for BGS suppliers to recover these costs, PSE&G, as a New Jersey EDC, estimated and accrued a total liability for the excess SREC cost expected to be recovered from ratepayers of $17 million, including approximately $7 million for Power’s share which was included in PSE&G’s Accounts Receivable (Payable)-Affiliated Companies, as of December 31, 2012. Under current accounting guidance, Power was unable to record the related intercompany receivable on its Condensed Consolidated Balance Sheet until the BPU issued an Order approving such payments. As a result, PSE&G’s liability to Power was not eliminated in consolidation and was included in Other Current Liabilities on PSEG’s Condensed Consolidated Balance Sheet as of December 31, 2012. In May 2013, the BPU issued an Order approving the BGS payments for these SRECs. This Order was not appealed and went into effect in July 2013. As a result, Power recorded its $9 million then outstanding receivable from PSE&G. In August 2013, PSE&G reimbursed Power and its other BGS suppliers for the excess SREC costs. | |||||||||||||||||
PSE And G [Member] | ||||||||||||||||||
Related-Party Transactions | Related-Party Transactions | |||||||||||||||||
The following discussion relates to intercompany transactions, the majority of which are eliminated during the PSEG consolidation process in accordance with GAAP. | ||||||||||||||||||
Power | ||||||||||||||||||
The financial statements for Power include transactions with related parties presented as follows: | ||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||
September 30, | September 30, | |||||||||||||||||
Related-Party Transactions | 2013 | 2012 | 2013 | 2012 | ||||||||||||||
Millions | ||||||||||||||||||
Revenue from Affiliates: | ||||||||||||||||||
Billings to PSE&G through BGSS (A) | $ | 48 | $ | 67 | $ | 654 | $ | 630 | ||||||||||
Billings to PSE&G through BGS (A) | 236 | 258 | 621 | 639 | ||||||||||||||
Total Revenue from Affiliates | $ | 284 | $ | 325 | $ | 1,275 | $ | 1,269 | ||||||||||
Expense Billings from Affiliates: | ||||||||||||||||||
Administrative Billings from Services (B) | $ | (43 | ) | $ | (38 | ) | $ | (131 | ) | $ | (110 | ) | ||||||
Total Expense Billings from Affiliates | $ | (43 | ) | $ | (38 | ) | $ | (131 | ) | $ | (110 | ) | ||||||
As of | As of | |||||||||||||||||
Related-Party Transactions | 30-Sep-13 | 31-Dec-12 | ||||||||||||||||
Millions | ||||||||||||||||||
Receivables from PSE&G through BGS and BGSS Contracts (A) | $ | 87 | $ | 238 | ||||||||||||||
Receivables from PSE&G Related to Gas Supply Hedges for BGSS (A) | 28 | 27 | ||||||||||||||||
Receivable from (Payable to) Services (B) | (26 | ) | (31 | ) | ||||||||||||||
Tax Receivable from (Payable to) PSEG (C) | (54 | ) | 111 | |||||||||||||||
Receivable from (Payable to) PSEG | (1 | ) | (5 | ) | ||||||||||||||
Accounts Receivable (Payable)—Affiliated Companies, net | $ | 34 | $ | 340 | ||||||||||||||
Short-Term Loan to Affiliate (Demand Note to PSEG) (D) | $ | 417 | $ | 574 | ||||||||||||||
Working Capital Advances to Services (E) | $ | 17 | $ | 17 | ||||||||||||||
Long-Term Accrued Taxes Receivable (Payable) (C) | $ | (50 | ) | $ | (50 | ) | ||||||||||||
PSE&G | ||||||||||||||||||
The financial statements for PSE&G include transactions with related parties presented as follows: | ||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||
September 30, | September 30, | |||||||||||||||||
Related-Party Transactions | 2013 | 2012 | 2013 | 2012 | ||||||||||||||
Millions | ||||||||||||||||||
Expense Billings from Affiliates: | ||||||||||||||||||
Billings from Power through BGSS (A) | $ | (48 | ) | $ | (67 | ) | $ | (654 | ) | $ | (630 | ) | ||||||
Billings from Power through BGS (A) | (236 | ) | (258 | ) | (621 | ) | (639 | ) | ||||||||||
Administrative Billings from Services (B) | (61 | ) | (58 | ) | (184 | ) | (165 | ) | ||||||||||
Total Expense Billings from Affiliates | $ | (345 | ) | $ | (383 | ) | $ | (1,459 | ) | $ | (1,434 | ) | ||||||
As of | As of | |||||||||||||||||
Related-Party Transactions | 30-Sep-13 | 31-Dec-12 | ||||||||||||||||
Millions | ||||||||||||||||||
Payable to Power through BGS and BGSS Contracts (A) | $ | (87 | ) | $ | (238 | ) | ||||||||||||
Payable to Power Related to Gas Supply Hedges for BGSS (A) | (28 | ) | (27 | ) | ||||||||||||||
Payable to Power for SREC Liability (F) | — | (7 | ) | |||||||||||||||
Receivable from (Payable to) Services (B) | (58 | ) | (65 | ) | ||||||||||||||
Tax Receivable from (Payable to) PSEG (C) | 263 | 256 | ||||||||||||||||
Receivable from (Payable to) PSEG | 3 | 6 | ||||||||||||||||
Receivable from Energy Holdings | 1 | 2 | ||||||||||||||||
Accounts Receivable (Payable)—Affiliated Companies, net | $ | 94 | $ | (73 | ) | |||||||||||||
Working Capital Advances to Services (E) | $ | 33 | $ | 33 | ||||||||||||||
Long-Term Accrued Taxes Receivable (Payable) (C) | $ | (48 | ) | $ | (32 | ) | ||||||||||||
(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. | |||||||||||||||||
(B) | Services provides and bills administrative services to Power and PSE&G at cost. In addition, Power and PSE&G 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) | 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. | |||||||||||||||||
(E) | Power and PSE&G have advanced working capital to Services. The amounts are included in Other Noncurrent Assets on Power’s and PSE&G’s Condensed Consolidated Balance Sheets. | |||||||||||||||||
(F) | Pursuant to a 2008 BPU Order, certain BGS suppliers, including Power, would be reimbursed for the cost they incurred above $300 per Solar Renewable Energy Certificate (SREC) or per Solar Alternative Compliance Payment (SACP) during the period June 1, 2008 through May 31, 2010 and such excess cost would be passed onto ratepayers. In accordance with a Stipulation of Settlement approved by the BPU in a December 2012 Order describing the mechanism for BGS suppliers to recover these costs, PSE&G, as a New Jersey EDC, estimated and accrued a total liability for the excess SREC cost expected to be recovered from ratepayers of $17 million, including approximately $7 million for Power’s share which was included in PSE&G’s Accounts Receivable (Payable)-Affiliated Companies, as of December 31, 2012. Under current accounting guidance, Power was unable to record the related intercompany receivable on its Condensed Consolidated Balance Sheet until the BPU issued an Order approving such payments. As a result, PSE&G’s liability to Power was not eliminated in consolidation and was included in Other Current Liabilities on PSEG’s Condensed Consolidated Balance Sheet as of December 31, 2012. In May 2013, the BPU issued an Order approving the BGS payments for these SRECs. This Order was not appealed and went into effect in July 2013. As a result, Power recorded its $9 million then outstanding receivable from PSE&G. In August 2013, PSE&G reimbursed Power and its other BGS suppliers for the excess SREC costs. |
Guarantees_of_Debt
Guarantees of Debt | 9 Months Ended | |||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||
Guarantees of Debt | Guarantees of Debt | |||||||||||||||||||||
Each series of Power’s Senior Notes, Pollution Control Notes and its syndicated revolving credit facilities are fully and unconditionally and jointly and severally guaranteed by its subsidiaries, PSEG Fossil LLC, PSEG Nuclear LLC and PSEG Energy Resources & Trade LLC. The following table presents condensed financial information for the guarantor subsidiaries, as well as Power’s non-guarantor subsidiaries. | ||||||||||||||||||||||
Power | Guarantor | Other | Consolidating | Consolidated | ||||||||||||||||||
Subsidiaries | Subsidiaries | Adjustments | ||||||||||||||||||||
Millions | ||||||||||||||||||||||
Three Months Ended September 30, 2013 | ||||||||||||||||||||||
Operating Revenues | $ | — | $ | 1,511 | $ | 66 | $ | (408 | ) | $ | 1,169 | |||||||||||
Operating Expenses | 2 | 1,145 | 62 | (409 | ) | 800 | ||||||||||||||||
Operating Income (Loss) | (2 | ) | 366 | 4 | 1 | 369 | ||||||||||||||||
Equity Earnings (Losses) of Subsidiaries | 226 | (1 | ) | — | (225 | ) | — | |||||||||||||||
Other Income | 8 | 47 | — | (10 | ) | 45 | ||||||||||||||||
Other Deductions | 1 | (11 | ) | — | (1 | ) | (11 | ) | ||||||||||||||
Other-Than-Temporary Impairments | — | (3 | ) | — | — | (3 | ) | |||||||||||||||
Interest Expense | (19 | ) | (13 | ) | (4 | ) | 10 | (26 | ) | |||||||||||||
Income Tax Benefit (Expense) | 7 | (160 | ) | — | — | (153 | ) | |||||||||||||||
Net Income (Loss) | $ | 221 | $ | 225 | $ | — | $ | (225 | ) | $ | 221 | |||||||||||
Comprehensive Income (Loss) | $ | 245 | $ | 242 | $ | — | $ | (242 | ) | $ | 245 | |||||||||||
Three Months Ended September 30, 2012 | ||||||||||||||||||||||
Operating Revenues | $ | — | $ | 1,358 | $ | 36 | $ | (356 | ) | $ | 1,038 | |||||||||||
Operating Expenses | (1 | ) | 1,095 | 32 | (355 | ) | 771 | |||||||||||||||
Operating Income (Loss) | 1 | 263 | 4 | (1 | ) | 267 | ||||||||||||||||
Equity Earnings (Losses) of Subsidiaries | 191 | — | — | (191 | ) | — | ||||||||||||||||
Other Income | 11 | 106 | — | (13 | ) | 104 | ||||||||||||||||
Other Deductions | — | (20 | ) | — | — | (20 | ) | |||||||||||||||
Other-Than-Temporary Impairments | — | (2 | ) | — | — | (2 | ) | |||||||||||||||
Interest Expense | (29 | ) | (15 | ) | (5 | ) | 14 | (35 | ) | |||||||||||||
Income Tax Benefit (Expense) | 7 | (142 | ) | 1 | 1 | (133 | ) | |||||||||||||||
Net Income (Loss) | $ | 181 | $ | 190 | $ | — | $ | (190 | ) | $ | 181 | |||||||||||
Comprehensive Income (Loss) | $ | 166 | $ | 168 | $ | — | $ | (168 | ) | $ | 166 | |||||||||||
Power | Guarantor | Other | Consolidating | Consolidated | ||||||||||||||||||
Subsidiaries | Subsidiaries | Adjustments | ||||||||||||||||||||
Millions | ||||||||||||||||||||||
Nine Months Ended September 30, 2013 | ||||||||||||||||||||||
Operating Revenues | $ | — | $ | 4,849 | $ | 133 | $ | (1,176 | ) | $ | 3,806 | |||||||||||
Operating Expenses | 6 | 3,894 | 123 | (1,176 | ) | 2,847 | ||||||||||||||||
Operating Income (Loss) | (6 | ) | 955 | 10 | — | 959 | ||||||||||||||||
Equity Earnings (Losses) of Subsidiaries | 588 | (3 | ) | — | (585 | ) | — | |||||||||||||||
Other Income | 27 | 130 | — | (30 | ) | 127 | ||||||||||||||||
Other Deductions | (9 | ) | (40 | ) | — | — | (49 | ) | ||||||||||||||
Other-Than-Temporary | — | (7 | ) | — | — | (7 | ) | |||||||||||||||
Impairments | ||||||||||||||||||||||
Interest Expense | (72 | ) | (29 | ) | (14 | ) | 30 | (85 | ) | |||||||||||||
Income Tax Benefit (Expense) | 34 | (419 | ) | 2 | — | (383 | ) | |||||||||||||||
Net Income (Loss) | $ | 562 | $ | 587 | $ | (2 | ) | $ | (585 | ) | $ | 562 | ||||||||||
Comprehensive Income (Loss) | $ | 611 | $ | 612 | $ | (2 | ) | $ | (610 | ) | $ | 611 | ||||||||||
Nine Months Ended September 30, 2013 | ||||||||||||||||||||||
Net Cash Provided By (Used In) | $ | 425 | $ | 1,360 | $ | 5 | $ | (506 | ) | $ | 1,284 | |||||||||||
Operating Activities | ||||||||||||||||||||||
Net Cash Provided By (Used In) | $ | 569 | $ | (869 | ) | $ | (1 | ) | $ | 11 | $ | (290 | ) | |||||||||
Investing Activities | ||||||||||||||||||||||
Net Cash Provided By (Used In) | $ | (990 | ) | $ | (492 | ) | $ | (4 | ) | $ | 494 | $ | (992 | ) | ||||||||
Financing Activities | ||||||||||||||||||||||
Nine Months Ended September 30, 2012 | ||||||||||||||||||||||
Operating Revenues | $ | — | $ | 4,560 | $ | 93 | $ | (1,069 | ) | $ | 3,584 | |||||||||||
Operating Expenses | (1 | ) | 3,663 | 87 | (1,069 | ) | 2,680 | |||||||||||||||
Operating Income (Loss) | 1 | 897 | 6 | — | 904 | |||||||||||||||||
Equity Earnings (Losses) of Subsidiaries | 567 | (4 | ) | — | (563 | ) | — | |||||||||||||||
Other Income | 35 | 176 | — | (40 | ) | 171 | ||||||||||||||||
Other Deductions | (7 | ) | (45 | ) | — | — | (52 | ) | ||||||||||||||
Other-Than-Temporary | — | (14 | ) | — | — | (14 | ) | |||||||||||||||
Impairments | ||||||||||||||||||||||
Interest Expense | (89 | ) | (35 | ) | (13 | ) | 40 | (97 | ) | |||||||||||||
Income Tax Benefit (Expense) | 31 | (409 | ) | 3 | 1 | (374 | ) | |||||||||||||||
Net Income (Loss) | $ | 538 | $ | 566 | $ | (4 | ) | $ | (562 | ) | $ | 538 | ||||||||||
Comprehensive Income (Loss) | $ | 549 | $ | 556 | $ | (4 | ) | $ | (552 | ) | $ | 549 | ||||||||||
Nine Months Ended September 30, 2012 | ||||||||||||||||||||||
Net Cash Provided By (Used In) | $ | 409 | $ | 1,259 | $ | (3 | ) | $ | (493 | ) | $ | 1,172 | ||||||||||
Operating Activities | ||||||||||||||||||||||
Net Cash Provided By (Used In) | $ | 257 | $ | (897 | ) | $ | (24 | ) | $ | 158 | $ | (506 | ) | |||||||||
Investing Activities | ||||||||||||||||||||||
Net Cash Provided By (Used In) | $ | (666 | ) | $ | (368 | ) | $ | 26 | $ | 335 | $ | (673 | ) | |||||||||
Financing Activities | ||||||||||||||||||||||
Power | Guarantor | Other | Consolidating | Consolidated | ||||||||||||||||||
Subsidiaries | Subsidiaries | Adjustments | ||||||||||||||||||||
Millions | ||||||||||||||||||||||
As of September 30, 2013 | ||||||||||||||||||||||
Current Assets | $ | 4,065 | $ | 8,609 | $ | 957 | $ | (11,941 | ) | $ | 1,690 | |||||||||||
Property, Plant and Equipment, net | 81 | 6,059 | 922 | — | 7,062 | |||||||||||||||||
Investment in Subsidiaries | 4,331 | 730 | — | (5,061 | ) | — | ||||||||||||||||
Noncurrent Assets | 197 | 1,842 | 56 | (126 | ) | 1,969 | ||||||||||||||||
Total Assets | $ | 8,674 | $ | 17,240 | $ | 1,935 | $ | (17,128 | ) | $ | 10,721 | |||||||||||
Current Liabilities | $ | 752 | $ | 10,778 | $ | 997 | $ | (11,941 | ) | $ | 586 | |||||||||||
Noncurrent Liabilities | 522 | 2,130 | 208 | (125 | ) | 2,735 | ||||||||||||||||
Long-Term Debt | 2,041 | — | — | — | 2,041 | |||||||||||||||||
Member’s Equity | 5,359 | 4,332 | 730 | (5,062 | ) | 5,359 | ||||||||||||||||
Total Liabilities and Member’s Equity | $ | 8,674 | $ | 17,240 | $ | 1,935 | $ | (17,128 | ) | $ | 10,721 | |||||||||||
As of December 31, 2012 | ||||||||||||||||||||||
Current Assets | $ | 3,922 | $ | 8,084 | $ | 940 | $ | (10,712 | ) | $ | 2,234 | |||||||||||
Property, Plant and Equipment, net | 80 | 5,988 | 950 | — | 7,018 | |||||||||||||||||
Investment in Subsidiaries | 4,317 | 733 | — | (5,050 | ) | — | ||||||||||||||||
Noncurrent Assets | 201 | 1,660 | 60 | (141 | ) | 1,780 | ||||||||||||||||
Total Assets | $ | 8,520 | $ | 16,465 | $ | 1,950 | $ | (15,903 | ) | $ | 11,032 | |||||||||||
Current Liabilities | $ | 482 | $ | 10,187 | $ | 1,010 | $ | (10,712 | ) | $ | 967 | |||||||||||
Noncurrent Liabilities | 559 | 1,960 | 207 | (140 | ) | 2,586 | ||||||||||||||||
Long-Term Debt | 2,040 | — | — | — | 2,040 | |||||||||||||||||
Member’s Equity | 5,439 | 4,318 | 733 | (5,051 | ) | 5,439 | ||||||||||||||||
Total Liabilities and Member’s Equity | $ | 8,520 | $ | 16,465 | $ | 1,950 | $ | (15,903 | ) | $ | 11,032 | |||||||||||
Power [Member] | ||||||||||||||||||||||
Guarantees of Debt | Guarantees of Debt | |||||||||||||||||||||
Each series of Power’s Senior Notes, Pollution Control Notes and its syndicated revolving credit facilities are fully and unconditionally and jointly and severally guaranteed by its subsidiaries, PSEG Fossil LLC, PSEG Nuclear LLC and PSEG Energy Resources & Trade LLC. The following table presents condensed financial information for the guarantor subsidiaries, as well as Power’s non-guarantor subsidiaries. | ||||||||||||||||||||||
Power | Guarantor | Other | Consolidating | Consolidated | ||||||||||||||||||
Subsidiaries | Subsidiaries | Adjustments | ||||||||||||||||||||
Millions | ||||||||||||||||||||||
Three Months Ended September 30, 2013 | ||||||||||||||||||||||
Operating Revenues | $ | — | $ | 1,511 | $ | 66 | $ | (408 | ) | $ | 1,169 | |||||||||||
Operating Expenses | 2 | 1,145 | 62 | (409 | ) | 800 | ||||||||||||||||
Operating Income (Loss) | (2 | ) | 366 | 4 | 1 | 369 | ||||||||||||||||
Equity Earnings (Losses) of Subsidiaries | 226 | (1 | ) | — | (225 | ) | — | |||||||||||||||
Other Income | 8 | 47 | — | (10 | ) | 45 | ||||||||||||||||
Other Deductions | 1 | (11 | ) | — | (1 | ) | (11 | ) | ||||||||||||||
Other-Than-Temporary Impairments | — | (3 | ) | — | — | (3 | ) | |||||||||||||||
Interest Expense | (19 | ) | (13 | ) | (4 | ) | 10 | (26 | ) | |||||||||||||
Income Tax Benefit (Expense) | 7 | (160 | ) | — | — | (153 | ) | |||||||||||||||
Net Income (Loss) | $ | 221 | $ | 225 | $ | — | $ | (225 | ) | $ | 221 | |||||||||||
Comprehensive Income (Loss) | $ | 245 | $ | 242 | $ | — | $ | (242 | ) | $ | 245 | |||||||||||
Three Months Ended September 30, 2012 | ||||||||||||||||||||||
Operating Revenues | $ | — | $ | 1,358 | $ | 36 | $ | (356 | ) | $ | 1,038 | |||||||||||
Operating Expenses | (1 | ) | 1,095 | 32 | (355 | ) | 771 | |||||||||||||||
Operating Income (Loss) | 1 | 263 | 4 | (1 | ) | 267 | ||||||||||||||||
Equity Earnings (Losses) of Subsidiaries | 191 | — | — | (191 | ) | — | ||||||||||||||||
Other Income | 11 | 106 | — | (13 | ) | 104 | ||||||||||||||||
Other Deductions | — | (20 | ) | — | — | (20 | ) | |||||||||||||||
Other-Than-Temporary Impairments | — | (2 | ) | — | — | (2 | ) | |||||||||||||||
Interest Expense | (29 | ) | (15 | ) | (5 | ) | 14 | (35 | ) | |||||||||||||
Income Tax Benefit (Expense) | 7 | (142 | ) | 1 | 1 | (133 | ) | |||||||||||||||
Net Income (Loss) | $ | 181 | $ | 190 | $ | — | $ | (190 | ) | $ | 181 | |||||||||||
Comprehensive Income (Loss) | $ | 166 | $ | 168 | $ | — | $ | (168 | ) | $ | 166 | |||||||||||
Power | Guarantor | Other | Consolidating | Consolidated | ||||||||||||||||||
Subsidiaries | Subsidiaries | Adjustments | ||||||||||||||||||||
Millions | ||||||||||||||||||||||
Nine Months Ended September 30, 2013 | ||||||||||||||||||||||
Operating Revenues | $ | — | $ | 4,849 | $ | 133 | $ | (1,176 | ) | $ | 3,806 | |||||||||||
Operating Expenses | 6 | 3,894 | 123 | (1,176 | ) | 2,847 | ||||||||||||||||
Operating Income (Loss) | (6 | ) | 955 | 10 | — | 959 | ||||||||||||||||
Equity Earnings (Losses) of Subsidiaries | 588 | (3 | ) | — | (585 | ) | — | |||||||||||||||
Other Income | 27 | 130 | — | (30 | ) | 127 | ||||||||||||||||
Other Deductions | (9 | ) | (40 | ) | — | — | (49 | ) | ||||||||||||||
Other-Than-Temporary | — | (7 | ) | — | — | (7 | ) | |||||||||||||||
Impairments | ||||||||||||||||||||||
Interest Expense | (72 | ) | (29 | ) | (14 | ) | 30 | (85 | ) | |||||||||||||
Income Tax Benefit (Expense) | 34 | (419 | ) | 2 | — | (383 | ) | |||||||||||||||
Net Income (Loss) | $ | 562 | $ | 587 | $ | (2 | ) | $ | (585 | ) | $ | 562 | ||||||||||
Comprehensive Income (Loss) | $ | 611 | $ | 612 | $ | (2 | ) | $ | (610 | ) | $ | 611 | ||||||||||
Nine Months Ended September 30, 2013 | ||||||||||||||||||||||
Net Cash Provided By (Used In) | $ | 425 | $ | 1,360 | $ | 5 | $ | (506 | ) | $ | 1,284 | |||||||||||
Operating Activities | ||||||||||||||||||||||
Net Cash Provided By (Used In) | $ | 569 | $ | (869 | ) | $ | (1 | ) | $ | 11 | $ | (290 | ) | |||||||||
Investing Activities | ||||||||||||||||||||||
Net Cash Provided By (Used In) | $ | (990 | ) | $ | (492 | ) | $ | (4 | ) | $ | 494 | $ | (992 | ) | ||||||||
Financing Activities | ||||||||||||||||||||||
Nine Months Ended September 30, 2012 | ||||||||||||||||||||||
Operating Revenues | $ | — | $ | 4,560 | $ | 93 | $ | (1,069 | ) | $ | 3,584 | |||||||||||
Operating Expenses | (1 | ) | 3,663 | 87 | (1,069 | ) | 2,680 | |||||||||||||||
Operating Income (Loss) | 1 | 897 | 6 | — | 904 | |||||||||||||||||
Equity Earnings (Losses) of Subsidiaries | 567 | (4 | ) | — | (563 | ) | — | |||||||||||||||
Other Income | 35 | 176 | — | (40 | ) | 171 | ||||||||||||||||
Other Deductions | (7 | ) | (45 | ) | — | — | (52 | ) | ||||||||||||||
Other-Than-Temporary | — | (14 | ) | — | — | (14 | ) | |||||||||||||||
Impairments | ||||||||||||||||||||||
Interest Expense | (89 | ) | (35 | ) | (13 | ) | 40 | (97 | ) | |||||||||||||
Income Tax Benefit (Expense) | 31 | (409 | ) | 3 | 1 | (374 | ) | |||||||||||||||
Net Income (Loss) | $ | 538 | $ | 566 | $ | (4 | ) | $ | (562 | ) | $ | 538 | ||||||||||
Comprehensive Income (Loss) | $ | 549 | $ | 556 | $ | (4 | ) | $ | (552 | ) | $ | 549 | ||||||||||
Nine Months Ended September 30, 2012 | ||||||||||||||||||||||
Net Cash Provided By (Used In) | $ | 409 | $ | 1,259 | $ | (3 | ) | $ | (493 | ) | $ | 1,172 | ||||||||||
Operating Activities | ||||||||||||||||||||||
Net Cash Provided By (Used In) | $ | 257 | $ | (897 | ) | $ | (24 | ) | $ | 158 | $ | (506 | ) | |||||||||
Investing Activities | ||||||||||||||||||||||
Net Cash Provided By (Used In) | $ | (666 | ) | $ | (368 | ) | $ | 26 | $ | 335 | $ | (673 | ) | |||||||||
Financing Activities | ||||||||||||||||||||||
Power | Guarantor | Other | Consolidating | Consolidated | ||||||||||||||||||
Subsidiaries | Subsidiaries | Adjustments | ||||||||||||||||||||
Millions | ||||||||||||||||||||||
As of September 30, 2013 | ||||||||||||||||||||||
Current Assets | $ | 4,065 | $ | 8,609 | $ | 957 | $ | (11,941 | ) | $ | 1,690 | |||||||||||
Property, Plant and Equipment, net | 81 | 6,059 | 922 | — | 7,062 | |||||||||||||||||
Investment in Subsidiaries | 4,331 | 730 | — | (5,061 | ) | — | ||||||||||||||||
Noncurrent Assets | 197 | 1,842 | 56 | (126 | ) | 1,969 | ||||||||||||||||
Total Assets | $ | 8,674 | $ | 17,240 | $ | 1,935 | $ | (17,128 | ) | $ | 10,721 | |||||||||||
Current Liabilities | $ | 752 | $ | 10,778 | $ | 997 | $ | (11,941 | ) | $ | 586 | |||||||||||
Noncurrent Liabilities | 522 | 2,130 | 208 | (125 | ) | 2,735 | ||||||||||||||||
Long-Term Debt | 2,041 | — | — | — | 2,041 | |||||||||||||||||
Member’s Equity | 5,359 | 4,332 | 730 | (5,062 | ) | 5,359 | ||||||||||||||||
Total Liabilities and Member’s Equity | $ | 8,674 | $ | 17,240 | $ | 1,935 | $ | (17,128 | ) | $ | 10,721 | |||||||||||
As of December 31, 2012 | ||||||||||||||||||||||
Current Assets | $ | 3,922 | $ | 8,084 | $ | 940 | $ | (10,712 | ) | $ | 2,234 | |||||||||||
Property, Plant and Equipment, net | 80 | 5,988 | 950 | — | 7,018 | |||||||||||||||||
Investment in Subsidiaries | 4,317 | 733 | — | (5,050 | ) | — | ||||||||||||||||
Noncurrent Assets | 201 | 1,660 | 60 | (141 | ) | 1,780 | ||||||||||||||||
Total Assets | $ | 8,520 | $ | 16,465 | $ | 1,950 | $ | (15,903 | ) | $ | 11,032 | |||||||||||
Current Liabilities | $ | 482 | $ | 10,187 | $ | 1,010 | $ | (10,712 | ) | $ | 967 | |||||||||||
Noncurrent Liabilities | 559 | 1,960 | 207 | (140 | ) | 2,586 | ||||||||||||||||
Long-Term Debt | 2,040 | — | — | — | 2,040 | |||||||||||||||||
Member’s Equity | 5,439 | 4,318 | 733 | (5,051 | ) | 5,439 | ||||||||||||||||
Total Liabilities and Member’s Equity | $ | 8,520 | $ | 16,465 | $ | 1,950 | $ | (15,903 | ) | $ | 11,032 | |||||||||||
Organization_and_Basis_of_Pres1
Organization and Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2013 | |
Basis of Presentation | Basis of Presentation |
The respective financial statements included herein have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (SEC) applicable to Quarterly Reports on Form 10-Q. Certain information and note disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States (GAAP) have been condensed or omitted pursuant to such rules and regulations. These Condensed Consolidated Financial Statements and Notes to Condensed Consolidated Financial Statements (Notes) should be read in conjunction with, and update and supplement matters discussed in, the Annual Report on Form 10-K for the year ended December 31, 2012 and Quarterly Reports on Form 10-Q for the quarters ended March 31, 2013 and June 30, 2013. | |
The unaudited condensed consolidated financial information furnished herein reflects all adjustments which are, in the opinion of management, necessary to fairly state the results for the interim periods presented. All such adjustments are of a normal recurring nature. All significant intercompany accounts and transactions are eliminated in consolidation, except as discussed in Note 18. Related-Party Transactions. The year-end Condensed Consolidated Balance Sheets were derived from the audited Consolidated Financial Statements included in the Annual Report on Form 10-K for the year ended December 31, 2012. | |
Power [Member] | |
Basis of Presentation | Basis of Presentation |
The respective financial statements included herein have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (SEC) applicable to Quarterly Reports on Form 10-Q. Certain information and note disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States (GAAP) have been condensed or omitted pursuant to such rules and regulations. These Condensed Consolidated Financial Statements and Notes to Condensed Consolidated Financial Statements (Notes) should be read in conjunction with, and update and supplement matters discussed in, the Annual Report on Form 10-K for the year ended December 31, 2012 and Quarterly Reports on Form 10-Q for the quarters ended March 31, 2013 and June 30, 2013. | |
The unaudited condensed consolidated financial information furnished herein reflects all adjustments which are, in the opinion of management, necessary to fairly state the results for the interim periods presented. All such adjustments are of a normal recurring nature. All significant intercompany accounts and transactions are eliminated in consolidation, except as discussed in Note 18. Related-Party Transactions. The year-end Condensed Consolidated Balance Sheets were derived from the audited Consolidated Financial Statements included in the Annual Report on Form 10-K for the year ended December 31, 2012. | |
PSE And G [Member] | |
Basis of Presentation | Basis of Presentation |
The respective financial statements included herein have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (SEC) applicable to Quarterly Reports on Form 10-Q. Certain information and note disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States (GAAP) have been condensed or omitted pursuant to such rules and regulations. These Condensed Consolidated Financial Statements and Notes to Condensed Consolidated Financial Statements (Notes) should be read in conjunction with, and update and supplement matters discussed in, the Annual Report on Form 10-K for the year ended December 31, 2012 and Quarterly Reports on Form 10-Q for the quarters ended March 31, 2013 and June 30, 2013. | |
The unaudited condensed consolidated financial information furnished herein reflects all adjustments which are, in the opinion of management, necessary to fairly state the results for the interim periods presented. All such adjustments are of a normal recurring nature. All significant intercompany accounts and transactions are eliminated in consolidation, except as discussed in Note 18. Related-Party Transactions. The year-end Condensed Consolidated Balance Sheets were derived from the audited Consolidated Financial Statements included in the Annual Report on Form 10-K for the year ended December 31, 2012. |
Financing_Receivables_Tables
Financing Receivables (Tables) | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||
PSE And G [Member] | ||||||||||||||||||||
Schedule Of Credit Risk Profile Based On Payment Activity | ||||||||||||||||||||
Credit Risk Profile Based on Payment Activity | ||||||||||||||||||||
As of | As of | |||||||||||||||||||
Consumer Loans | September 30, | December 31, | ||||||||||||||||||
2013 | 2012 | |||||||||||||||||||
Millions | ||||||||||||||||||||
Commercial/Industrial | $ | 183 | $ | 174 | ||||||||||||||||
Residential | 15 | 15 | ||||||||||||||||||
Total | $ | 198 | $ | 189 | ||||||||||||||||
Energy Holdings [Member] | ||||||||||||||||||||
Schedule Of Gross And Net Lease Investment | ||||||||||||||||||||
As of | As of | |||||||||||||||||||
September 30, | December 31, | |||||||||||||||||||
2013 | 2012 | |||||||||||||||||||
Millions | ||||||||||||||||||||
Lease Receivables (net of Non-Recourse Debt) | $ | 701 | $ | 721 | ||||||||||||||||
Estimated Residual Value of Leased Assets | 529 | 535 | ||||||||||||||||||
1,230 | 1,256 | |||||||||||||||||||
Unearned and Deferred Income | (405 | ) | (416 | ) | ||||||||||||||||
Gross Investments in Leases | 825 | 840 | ||||||||||||||||||
Deferred Tax Liabilities | (705 | ) | (723 | ) | ||||||||||||||||
Net Investments in Leases | $ | 120 | $ | 117 | ||||||||||||||||
Schedule Of Lease Receivables, Net Of Nonrecourse Debt, Associated With Leveraged Lease Portfolio Based On Counterparty Credit Rating | ||||||||||||||||||||
Lease Receivables, Net of | ||||||||||||||||||||
Non-Recourse Debt | ||||||||||||||||||||
Counterparties’ Credit Rating (Standard & Poor's (S&P)) | As of | As of | ||||||||||||||||||
As of September 30, 2013 | September 30, 2013 | December 31, 2012 | ||||||||||||||||||
Millions | ||||||||||||||||||||
AA | $ | 20 | $ | 21 | ||||||||||||||||
AA- | 56 | 73 | ||||||||||||||||||
BBB+ - BBB- | 316 | 316 | ||||||||||||||||||
B | 165 | 166 | ||||||||||||||||||
Not Rated | 144 | 145 | ||||||||||||||||||
Total | $ | 701 | $ | 721 | ||||||||||||||||
Schedule Of Assets Under Lease Receivables | ||||||||||||||||||||
Asset | Location | Gross | % | Total | Fuel | Counter-parties’ | Counterparty | |||||||||||||
Investment | Owned | Type | S&P Credit | |||||||||||||||||
Ratings | ||||||||||||||||||||
Millions | MW | |||||||||||||||||||
Powerton Station Units 5 and 6 | IL | $ | 134 | 64 | % | 1,538 | Coal | Not Rated | Edison Mission Energy | |||||||||||
Joliet Station Units 7 and 8 | IL | $ | 84 | 64 | % | 1,044 | Coal | Not Rated | Edison Mission Energy | |||||||||||
Keystone Station Units 1 and 2 | PA | $ | 117 | 17 | % | 1,711 | Coal | B | GenOn REMA, LLC | |||||||||||
Conemaugh Station Units 1 and 2 | PA | $ | 117 | 17 | % | 1,711 | Coal | B | GenOn REMA, LLC | |||||||||||
Shawville Station Units 1, 2, 3 and 4 | PA | $ | 110 | 100 | % | 603 | Coal | B | GenOn REMA, LLC | |||||||||||
AvailableforSale_Securities_Ta
Available-for-Sale Securities (Tables) | 9 Months Ended | |||||||||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||||||||
Fair Values And Gross Unrealized Gains And Losses For The Securities Held In The NDT Fund | ||||||||||||||||||||||||||||||||||
As of September 30, 2013 | ||||||||||||||||||||||||||||||||||
Cost | Gross | Gross | Fair | |||||||||||||||||||||||||||||||
Unrealized | Unrealized | Value | ||||||||||||||||||||||||||||||||
Gains | Losses | |||||||||||||||||||||||||||||||||
Millions | ||||||||||||||||||||||||||||||||||
Equity Securities | $ | 615 | $ | 234 | $ | (6 | ) | $ | 843 | |||||||||||||||||||||||||
Debt Securities | ||||||||||||||||||||||||||||||||||
Government Obligations | 411 | 5 | (6 | ) | 410 | |||||||||||||||||||||||||||||
Other Debt Securities | 313 | 11 | (4 | ) | 320 | |||||||||||||||||||||||||||||
Total Debt Securities | 724 | 16 | (10 | ) | 730 | |||||||||||||||||||||||||||||
Other Securities | 62 | — | — | 62 | ||||||||||||||||||||||||||||||
Total NDT Available-for-Sale Securities | $ | 1,401 | $ | 250 | $ | (16 | ) | $ | 1,635 | |||||||||||||||||||||||||
As of December 31, 2012 | ||||||||||||||||||||||||||||||||||
Cost | Gross | Gross | Fair | |||||||||||||||||||||||||||||||
Unrealized | Unrealized | Value | ||||||||||||||||||||||||||||||||
Gains | Losses | |||||||||||||||||||||||||||||||||
Millions | ||||||||||||||||||||||||||||||||||
Equity Securities | $ | 648 | $ | 147 | $ | (6 | ) | $ | 789 | |||||||||||||||||||||||||
Debt Securities | ||||||||||||||||||||||||||||||||||
Government Obligations | 274 | 11 | — | 285 | ||||||||||||||||||||||||||||||
Other Debt Securities | 320 | 22 | — | 342 | ||||||||||||||||||||||||||||||
Total Debt Securities | 594 | 33 | — | 627 | ||||||||||||||||||||||||||||||
Other Securities | 124 | — | — | 124 | ||||||||||||||||||||||||||||||
Total NDT Available-for-Sale Securities | $ | 1,366 | $ | 180 | $ | (6 | ) | $ | 1,540 | |||||||||||||||||||||||||
Schedule Of Accounts Receivable And Accounts Payable in the NDT Funds | ||||||||||||||||||||||||||||||||||
As of | As of | |||||||||||||||||||||||||||||||||
September 30, | December 31, | |||||||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||||||
Millions | ||||||||||||||||||||||||||||||||||
Accounts Receivable | $ | 43 | $ | 18 | ||||||||||||||||||||||||||||||
Accounts Payable | $ | 47 | $ | 53 | ||||||||||||||||||||||||||||||
Value Of Securities That Have Been In An Unrealized Loss Position For Less Than And Greater Than 12 Months | ||||||||||||||||||||||||||||||||||
As of September 30, 2013 | As of December 31, 2012 | |||||||||||||||||||||||||||||||||
Less Than 12 | Greater Than 12 | Less Than 12 | Greater Than 12 | |||||||||||||||||||||||||||||||
Months | Months | Months | Months | |||||||||||||||||||||||||||||||
Fair | Gross | Fair | Gross | Fair | Gross | Fair | Gross | |||||||||||||||||||||||||||
Value | Unrealized | Value | Unrealized | Value | Unrealized | Value | Unrealized | |||||||||||||||||||||||||||
Losses | Losses | Losses | Losses | |||||||||||||||||||||||||||||||
Millions | ||||||||||||||||||||||||||||||||||
Equity Securities (A) | $ | 78 | $ | (6 | ) | $ | — | $ | — | $ | 139 | $ | (6 | ) | $ | — | $ | — | ||||||||||||||||
Debt Securities | ||||||||||||||||||||||||||||||||||
Government Obligations (B) | 158 | (6 | ) | — | — | 34 | — | 1 | — | |||||||||||||||||||||||||
Other Debt Securities (C) | 131 | (4 | ) | — | — | 31 | — | 6 | — | |||||||||||||||||||||||||
Total Debt Securities | 289 | (10 | ) | — | — | 65 | — | 7 | — | |||||||||||||||||||||||||
Other Securities | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||
NDT Available-for-Sale Securities | $ | 367 | $ | (16 | ) | $ | — | $ | — | $ | 204 | $ | (6 | ) | $ | 7 | $ | — | ||||||||||||||||
(A) | Equity Securities—Investments in marketable equity securities within the NDT Fund are primarily in common stocks within a broad range of industries and sectors. The unrealized losses are distributed over a broad range of securities with limited impairment durations. Power does not consider these securities to be other-than-temporarily impaired as of September 30, 2013. | |||||||||||||||||||||||||||||||||
(B) | Debt Securities (Government)—Unrealized losses on Power’s NDT investments in United States Treasury obligations and Federal Agency asset-backed securities were caused by interest rate changes. Since these investments are guaranteed by the United States government or an agency of the United States government, it is not expected that these securities will settle for less than their amortized cost basis, since Power does not intend to sell nor will it be more-likely-than-not required to sell. Power does not consider these securities to be other-than-temporarily impaired as of September 30, 2013. | |||||||||||||||||||||||||||||||||
(C) | Debt Securities (Corporate)—Power’s investments in corporate bonds are limited to 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 September 30, 2013. | |||||||||||||||||||||||||||||||||
Proceeds From The Sales Of And The Net Realized Gains On Securities In The NDT Funds And Rabbi Trusts | ||||||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||||
Millions | ||||||||||||||||||||||||||||||||||
Proceeds from NDT Fund Sales | $ | 220 | $ | 617 | $ | 837 | $ | 1,252 | ||||||||||||||||||||||||||
Net Realized Gains (Losses) on NDT Fund: | ||||||||||||||||||||||||||||||||||
Gross Realized Gains | 35 | 94 | 95 | 136 | ||||||||||||||||||||||||||||||
Gross Realized Losses | (9 | ) | (19 | ) | (34 | ) | (41 | ) | ||||||||||||||||||||||||||
Net Realized Gains (Losses) on NDT Fund | $ | 26 | $ | 75 | $ | 61 | $ | 95 | ||||||||||||||||||||||||||
Amount Of Available-For-Sale Debt Securities By Maturity Periods | ||||||||||||||||||||||||||||||||||
Time Frame | Fair Value | |||||||||||||||||||||||||||||||||
Millions | ||||||||||||||||||||||||||||||||||
Less than one year | $ | 57 | ||||||||||||||||||||||||||||||||
1 - 5 years | 167 | |||||||||||||||||||||||||||||||||
6 - 10 years | 186 | |||||||||||||||||||||||||||||||||
11 - 15 years | 44 | |||||||||||||||||||||||||||||||||
16 - 20 years | 19 | |||||||||||||||||||||||||||||||||
Over 20 years | 257 | |||||||||||||||||||||||||||||||||
Total NDT Available-for-Sale Debt Securities | $ | 730 | ||||||||||||||||||||||||||||||||
Rabbi Trust [Member] | ||||||||||||||||||||||||||||||||||
Securities Held In The Rabbi Trusts | ||||||||||||||||||||||||||||||||||
As of September 30, 2013 | ||||||||||||||||||||||||||||||||||
Cost | Gross | Gross | Fair | |||||||||||||||||||||||||||||||
Unrealized | Unrealized | Value | ||||||||||||||||||||||||||||||||
Gains | Losses | |||||||||||||||||||||||||||||||||
Millions | ||||||||||||||||||||||||||||||||||
Equity Securities | $ | 14 | $ | 7 | $ | — | $ | 21 | ||||||||||||||||||||||||||
Debt Securities | ||||||||||||||||||||||||||||||||||
Government Obligations | 110 | — | (2 | ) | 108 | |||||||||||||||||||||||||||||
Other Debt Securities | 45 | — | (1 | ) | 44 | |||||||||||||||||||||||||||||
Total Debt Securities | 155 | — | (3 | ) | 152 | |||||||||||||||||||||||||||||
Other Securities | 2 | — | — | 2 | ||||||||||||||||||||||||||||||
Total Rabbi Trust Available-for-Sale Securities | $ | 171 | $ | 7 | $ | (3 | ) | $ | 175 | |||||||||||||||||||||||||
Securities in the Rabbi Trust in a gross unrealized loss position have been in such position for less than twelve months. | ||||||||||||||||||||||||||||||||||
As of December 31, 2012 | ||||||||||||||||||||||||||||||||||
Cost | Gross | Gross | Fair | |||||||||||||||||||||||||||||||
Unrealized | Unrealized | Value | ||||||||||||||||||||||||||||||||
Gains | Losses | |||||||||||||||||||||||||||||||||
Millions | ||||||||||||||||||||||||||||||||||
Equity Securities | $ | 13 | $ | 5 | $ | — | $ | 18 | ||||||||||||||||||||||||||
Debt Securities | ||||||||||||||||||||||||||||||||||
Government Obligations | 114 | 3 | — | 117 | ||||||||||||||||||||||||||||||
Other Debt Securities | 45 | 2 | — | 47 | ||||||||||||||||||||||||||||||
Total Debt Securities | 159 | 5 | — | 164 | ||||||||||||||||||||||||||||||
Other Securities | 3 | — | — | 3 | ||||||||||||||||||||||||||||||
Total Rabbi Trust Available-for-Sale Securities | $ | 175 | $ | 10 | $ | — | $ | 185 | ||||||||||||||||||||||||||
Schedule of Accounts Receivable and Accounts Payable in the Rabbi Trust Funds [Table Text Block] | These amounts in the preceding tables do not include receivables and payables for Rabbi Trust Fund transactions which have not settled at the end of each period. Such amounts are included in Accounts Receivable and Accounts Payable on the Condensed Consolidated Balance Sheets as shown in the following table. | |||||||||||||||||||||||||||||||||
As of | As of | |||||||||||||||||||||||||||||||||
September 30, | December 31, | |||||||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||||||
Millions | ||||||||||||||||||||||||||||||||||
Accounts Receivable | $ | 3 | $ | 4 | ||||||||||||||||||||||||||||||
Accounts Payable | $ | 3 | $ | 5 | ||||||||||||||||||||||||||||||
Proceeds From The Sales Of And The Net Realized Gains On Securities In The NDT Funds And Rabbi Trusts | ||||||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||||
Millions | ||||||||||||||||||||||||||||||||||
Proceeds from Rabbi Trust Sales | $ | 13 | $ | 6 | $ | 77 | $ | 221 | ||||||||||||||||||||||||||
Net Realized Gains (Losses) on Rabbi Trust: | ||||||||||||||||||||||||||||||||||
Gross Realized Gains | $ | — | $ | — | $ | 4 | $ | 6 | ||||||||||||||||||||||||||
Gross Realized Losses | — | — | (3 | ) | — | |||||||||||||||||||||||||||||
Net Realized Gains (Losses) on Rabbi Trust | $ | — | $ | — | $ | 1 | $ | 6 | ||||||||||||||||||||||||||
Amount Of Available-For-Sale Debt Securities By Maturity Periods | ||||||||||||||||||||||||||||||||||
Time Frame | Fair Value | |||||||||||||||||||||||||||||||||
Millions | ||||||||||||||||||||||||||||||||||
Less than one year | $ | — | ||||||||||||||||||||||||||||||||
1 - 5 years | 59 | |||||||||||||||||||||||||||||||||
6 - 10 years | 29 | |||||||||||||||||||||||||||||||||
11 - 15 years | 7 | |||||||||||||||||||||||||||||||||
16 - 20 years | 4 | |||||||||||||||||||||||||||||||||
Over 20 years | 53 | |||||||||||||||||||||||||||||||||
Total Rabbi Trust Available-for-Sale Debt Securities | $ | 152 | ||||||||||||||||||||||||||||||||
Fair Value Of The Rabbi Trusts | ||||||||||||||||||||||||||||||||||
As of | As of | |||||||||||||||||||||||||||||||||
September 30, | December 31, | |||||||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||||||
Millions | ||||||||||||||||||||||||||||||||||
Power | $ | 38 | $ | 36 | ||||||||||||||||||||||||||||||
PSE&G | 41 | 61 | ||||||||||||||||||||||||||||||||
Other | 96 | 88 | ||||||||||||||||||||||||||||||||
Total Rabbi Trust Available-for-Sale Securities | $ | 175 | $ | 185 | ||||||||||||||||||||||||||||||
Pension_and_OPEB_Tables
Pension and OPEB (Tables) | 9 Months Ended | |||||||||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||||||||
Text Block [Abstract] | ||||||||||||||||||||||||||||||||||
Components Of Net Periodic Benefit Cost | ||||||||||||||||||||||||||||||||||
Pension Benefits | OPEB | Pension Benefits | OPEB | |||||||||||||||||||||||||||||||
Three Months Ended | Three Months Ended | Nine Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||
September 30, | September 30, | September 30, | September 30, | |||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||
Millions | ||||||||||||||||||||||||||||||||||
Components of Net Periodic Benefit Cost | ||||||||||||||||||||||||||||||||||
Service Cost | $ | 29 | $ | 26 | $ | 6 | $ | 5 | $ | 87 | $ | 76 | $ | 16 | $ | 13 | ||||||||||||||||||
Interest Cost | 54 | 56 | 15 | 17 | 161 | 167 | 47 | 49 | ||||||||||||||||||||||||||
Expected Return on Plan Assets | (87 | ) | (76 | ) | (6 | ) | (4 | ) | (261 | ) | (229 | ) | (16 | ) | (13 | ) | ||||||||||||||||||
Amortization of Net | ||||||||||||||||||||||||||||||||||
Transition Obligation | — | — | — | 1 | — | — | — | 2 | ||||||||||||||||||||||||||
Prior Service Cost (Credit) | (5 | ) | (5 | ) | (4 | ) | (4 | ) | (14 | ) | (14 | ) | (11 | ) | (11 | ) | ||||||||||||||||||
Actuarial Loss | 47 | 41 | 11 | 7 | 141 | 125 | 32 | 23 | ||||||||||||||||||||||||||
Net Periodic Benefit Cost | $ | 38 | $ | 42 | $ | 22 | $ | 22 | $ | 114 | $ | 125 | $ | 68 | $ | 63 | ||||||||||||||||||
Special Termination Benefits | — | 1 | — | — | — | 1 | — | — | ||||||||||||||||||||||||||
Effect of Regulatory Asset | — | — | — | 4 | — | — | — | 14 | ||||||||||||||||||||||||||
Total Benefit Costs, Including Effect of Regulatory Asset | $ | 38 | $ | 43 | $ | 22 | $ | 26 | $ | 114 | $ | 126 | $ | 68 | $ | 77 | ||||||||||||||||||
Schedule Of Pension And OPEB Costs | ||||||||||||||||||||||||||||||||||
Pension Benefits | OPEB | Pension Benefits | OPEB | |||||||||||||||||||||||||||||||
Three Months Ended | Three Months Ended | Nine Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||
September 30, | September 30, | September 30, | September 30, | |||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||
Millions | ||||||||||||||||||||||||||||||||||
Power | $ | 11 | $ | 14 | $ | 6 | $ | 5 | $ | 33 | $ | 39 | $ | 17 | $ | 14 | ||||||||||||||||||
PSE&G | 23 | 24 | 16 | 21 | 68 | 73 | 49 | 61 | ||||||||||||||||||||||||||
Other | 4 | 5 | — | — | 13 | 14 | 2 | 2 | ||||||||||||||||||||||||||
Total Benefit Costs | $ | 38 | $ | 43 | $ | 22 | $ | 26 | $ | 114 | $ | 126 | $ | 68 | $ | 77 | ||||||||||||||||||
Commitments_and_Contingent_Lia1
Commitments and Contingent Liabilities (Tables) | 9 Months Ended | ||||||||||||||
Sep. 30, 2013 | |||||||||||||||
Schedule of Capital Expenditures [Table Text Block] | |||||||||||||||
2013 | 2014 | 2015 | |||||||||||||
Millions | |||||||||||||||
Power | $ | 400 | $ | 365 | $ | 305 | |||||||||
PSE&G | 2,045 | 1,765 | 1,305 | ||||||||||||
Other | 95 | 40 | 30 | ||||||||||||
Total PSEG | $ | 2,540 | $ | 2,170 | $ | 1,640 | |||||||||
Power [Member] | |||||||||||||||
Face Value Of Outstanding Guarantees, Current Exposure And Margin Positions | |||||||||||||||
As of | As of | ||||||||||||||
September 30, | December 31, | ||||||||||||||
2013 | 2012 | ||||||||||||||
Millions | |||||||||||||||
Face Value of Outstanding Guarantees | $ | 1,551 | $ | 1,508 | |||||||||||
Exposure under Current Guarantees | $ | 201 | $ | 226 | |||||||||||
Letters of Credit Margin Posted | $ | 121 | $ | 124 | |||||||||||
Letters of Credit Margin Received | $ | 29 | $ | 69 | |||||||||||
Cash Deposited and Received | |||||||||||||||
Counterparty Cash Margin Deposited | $ | 12 | $ | 15 | |||||||||||
Counterparty Cash Margin Received | $ | — | $ | (4 | ) | ||||||||||
Net Broker Balance Deposited (Received) | $ | 8 | $ | 26 | |||||||||||
In the Event Power were to Lose its Investment Grade Rating: | |||||||||||||||
Additional Collateral that Could be Required | $ | 588 | $ | 654 | |||||||||||
Liquidity Available under PSEG’s and Power’s Credit Facilities to Post Collateral | $ | 3,537 | $ | 3,531 | |||||||||||
Additional Amounts Posted | |||||||||||||||
Other Letters of Credit | $ | 42 | $ | 45 | |||||||||||
Schedule of Capital Expenditures [Table Text Block] | |||||||||||||||
2013 | 2014 | 2015 | |||||||||||||
Millions | |||||||||||||||
Power | $ | 400 | $ | 365 | $ | 305 | |||||||||
PSE&G | 2,045 | 1,765 | 1,305 | ||||||||||||
Other | 95 | 40 | 30 | ||||||||||||
Total PSEG | $ | 2,540 | $ | 2,170 | $ | 1,640 | |||||||||
Total Minimum Purchase Commitments | As of September 30, 2013, the total minimum purchase requirements included in these commitments were as follows: | ||||||||||||||
Fuel Type | Power’s Share of | ||||||||||||||
Commitments | |||||||||||||||
through 2017 | |||||||||||||||
Millions | |||||||||||||||
Nuclear Fuel | |||||||||||||||
Uranium | $ | 470 | |||||||||||||
Enrichment | $ | 386 | |||||||||||||
Fabrication | $ | 146 | |||||||||||||
Natural Gas | $ | 880 | |||||||||||||
Coal | $ | 446 | |||||||||||||
PSE And G [Member] | |||||||||||||||
Schedule of Capital Expenditures [Table Text Block] | |||||||||||||||
2013 | 2014 | 2015 | |||||||||||||
Millions | |||||||||||||||
Power | $ | 400 | $ | 365 | $ | 305 | |||||||||
PSE&G | 2,045 | 1,765 | 1,305 | ||||||||||||
Other | 95 | 40 | 30 | ||||||||||||
Total PSEG | $ | 2,540 | $ | 2,170 | $ | 1,640 | |||||||||
Contract For Anticipated BGS-Fixed Price Eligible Load | PSE&G has contracted for its anticipated BGS-Fixed Price eligible load, as follows: | ||||||||||||||
Auction Year | |||||||||||||||
2010 | 2011 | 2012 | 2013 | ||||||||||||
36-Month Terms Ending | May-13 | May-14 | May-15 | May-16 | (A) | ||||||||||
Load (MW) | 2,800 | 2,800 | 2,900 | 2,800 | |||||||||||
$ per kWh | 0.09577 | 0.0943 | 0.08388 | 0.09218 | |||||||||||
Financial_Risk_Management_Acti1
Financial Risk Management Activities (Tables) | 9 Months Ended | |||||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||||
Schedule Of Derivative Transactions Designated And Effective As Cash Flow Hedges | ||||||||||||||||||||||||||||||
As of | As of | |||||||||||||||||||||||||||||
September 30, | December 31, | |||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||
Millions | ||||||||||||||||||||||||||||||
Fair Value of Cash Flow Hedges | $ | 1 | $ | 3 | ||||||||||||||||||||||||||
Impact on Accumulated Other Comprehensive Income (Loss) (after tax) | $ | 3 | $ | 9 | ||||||||||||||||||||||||||
Schedule Of Derivative Instruments Fair Value In Balance Sheets | ||||||||||||||||||||||||||||||
As of September 30, 2013 | ||||||||||||||||||||||||||||||
Power (A) | PSE&G(A) | PSEG (A) | Consolidated | |||||||||||||||||||||||||||
Cash Flow | Non | Non | Fair Value | |||||||||||||||||||||||||||
Hedges | Hedges | Hedges | Hedges | |||||||||||||||||||||||||||
Balance Sheet Location | Energy- | Energy- | Netting | Total | Energy- | Interest | Total | |||||||||||||||||||||||
Related | Related | (B) | Power | Related | Rate | Derivatives | ||||||||||||||||||||||||
Contracts | Contracts | Contracts | Swaps | |||||||||||||||||||||||||||
Millions | ||||||||||||||||||||||||||||||
Derivative Contracts | ||||||||||||||||||||||||||||||
Current Assets | $ | 1 | $ | 228 | $ | (157 | ) | $ | 72 | $ | 19 | $ | 16 | $ | 107 | |||||||||||||||
Noncurrent Assets | — | 164 | (75 | ) | 89 | 69 | 26 | 184 | ||||||||||||||||||||||
Total Mark-to-Market Derivative Assets | $ | 1 | $ | 392 | $ | (232 | ) | $ | 161 | $ | 88 | $ | 42 | $ | 291 | |||||||||||||||
Derivative Contracts | ||||||||||||||||||||||||||||||
Current Liabilities | $ | — | $ | (193 | ) | $ | 157 | $ | (36 | ) | $ | — | $ | — | $ | (36 | ) | |||||||||||||
Noncurrent Liabilities | — | (96 | ) | 73 | (23 | ) | (140 | ) | — | (163 | ) | |||||||||||||||||||
Total Mark-to-Market Derivative (Liabilities) | $ | — | $ | (289 | ) | $ | 230 | $ | (59 | ) | $ | (140 | ) | $ | — | $ | (199 | ) | ||||||||||||
Total Net Mark-to-Market Derivative Assets (Liabilities) | $ | 1 | $ | 103 | $ | (2 | ) | $ | 102 | $ | (52 | ) | $ | 42 | $ | 92 | ||||||||||||||
As of December 31, 2012 | ||||||||||||||||||||||||||||||
Power (A) | PSE&G (A) | PSEG (A) | Consolidated | |||||||||||||||||||||||||||
Cash Flow | Non | Non | Fair Value | |||||||||||||||||||||||||||
Hedges | Hedges | Hedges | Hedges | |||||||||||||||||||||||||||
Balance Sheet Location | Energy- | Energy- | Netting | Total | Energy- | Interest | Total | |||||||||||||||||||||||
Related | Related | (B) | Power | Related | Rate | Derivatives | ||||||||||||||||||||||||
Contracts | Contracts | Contracts | Swaps | |||||||||||||||||||||||||||
Millions | ||||||||||||||||||||||||||||||
Derivative Contracts | ||||||||||||||||||||||||||||||
Current Assets | $ | 3 | $ | 332 | $ | (217 | ) | $ | 118 | $ | 5 | $ | 15 | $ | 138 | |||||||||||||||
Noncurrent Assets | — | 75 | (26 | ) | 49 | 62 | 42 | 153 | ||||||||||||||||||||||
Total Mark-to-Market Derivative Assets | $ | 3 | $ | 407 | $ | (243 | ) | $ | 167 | $ | 67 | $ | 57 | $ | 291 | |||||||||||||||
Derivative Contracts | ||||||||||||||||||||||||||||||
Current Liabilities | $ | — | $ | (265 | ) | $ | 219 | $ | (46 | ) | $ | — | $ | — | $ | (46 | ) | |||||||||||||
Noncurrent Liabilities | — | (41 | ) | 26 | (15 | ) | (107 | ) | — | (122 | ) | |||||||||||||||||||
Total Mark-to-Market Derivative (Liabilities) | $ | — | $ | (306 | ) | $ | 245 | $ | (61 | ) | $ | (107 | ) | $ | — | $ | (168 | ) | ||||||||||||
Total Net Mark-to-Market Derivative Assets (Liabilities) | $ | 3 | $ | 101 | $ | 2 | $ | 106 | $ | (40 | ) | $ | 57 | $ | 123 | |||||||||||||||
(A) | Substantially all of Power's and PSEG's derivative instruments are contracts subject to master netting agreements. Contracts not subject to master netting or similar agreements are immaterial and did not have any collateral posted or received as of September 30, 2013 and December 31, 2012. 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 in the statement of financial position. As of September 30, 2013 and December 31, 2012, net cash collateral (received) paid of $(2) million and $2 million, respectively, were netted against the corresponding net derivative contract positions. Of the $(2) million as of September 30, 2013, $(1) million of cash collateral was netted against current assets, $(2) million was netted against noncurrent assets and $1 million was netted against current liabilities. Of the $2 million as of December 31, 2012, cash collateral of $(3) million and $5 million were netted against current assets and current liabilities, respectively. | |||||||||||||||||||||||||||||
Schedule Of Derivative Instruments Designated As Cash Flow Hedges | ||||||||||||||||||||||||||||||
Derivatives in | Amount of | Location | Amount of | Location of | Amount of | |||||||||||||||||||||||||
Cash Flow Hedging | Pre-Tax | of Pre-Tax Gain | Pre-Tax | Pre-Tax Gain | Pre-Tax | |||||||||||||||||||||||||
Relationships | Gain (Loss) | (Loss) Reclassified | Gain (Loss) | (Loss) Recognized in | Gain (Loss) | |||||||||||||||||||||||||
Recognized in | from AOCI into | Reclassified | Income on | Recognized in | ||||||||||||||||||||||||||
AOCI on | Income | from AOCI | Derivatives | Income on | ||||||||||||||||||||||||||
Derivatives | into Income | (Ineffective Portion) | Derivatives | |||||||||||||||||||||||||||
(Effective | (Effective | (Ineffective | ||||||||||||||||||||||||||||
Portion) | Portion) | Portion) | ||||||||||||||||||||||||||||
Three Months Ended | Three Months Ended | Three Months Ended | ||||||||||||||||||||||||||||
September 30, | September 30, | September 30, | ||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||
Millions | ||||||||||||||||||||||||||||||
PSEG | ||||||||||||||||||||||||||||||
Energy-Related Contracts | $ | 1 | $ | (3 | ) | Operating Revenues | $ | 3 | $ | 15 | Operating Revenues | $ | (1 | ) | $ | (1 | ) | |||||||||||||
Total PSEG | $ | 1 | $ | (3 | ) | $ | 3 | $ | 15 | $ | (1 | ) | $ | (1 | ) | |||||||||||||||
Power | ||||||||||||||||||||||||||||||
Energy-Related Contracts | $ | 1 | $ | (3 | ) | Operating Revenues | $ | 3 | $ | 15 | Operating Revenues | $ | (1 | ) | $ | (1 | ) | |||||||||||||
Total Power | $ | 1 | $ | (3 | ) | $ | 3 | $ | 15 | $ | (1 | ) | $ | (1 | ) | |||||||||||||||
The following shows the effect on the Condensed Consolidated Statements of Operations and on AOCI of derivative instruments designated as cash flow hedges for the nine months ended September 30, 2013 and 2012: | ||||||||||||||||||||||||||||||
Derivatives in | Amount of | Location | Amount of | Location of | Amount of | |||||||||||||||||||||||||
Cash Flow Hedging | Pre-Tax | of Pre-Tax Gain | Pre-Tax | Pre-Tax Gain | Pre-Tax | |||||||||||||||||||||||||
Relationships | Gain (Loss) | (Loss) Reclassified | Gain (Loss) | (Loss) Recognized in | Gain (Loss) | |||||||||||||||||||||||||
Recognized in | from AOCI into | Reclassified | Income on | Recognized in | ||||||||||||||||||||||||||
AOCI on | Income | from AOCI | Derivatives | Income on | ||||||||||||||||||||||||||
Derivatives | into Income | (Ineffective Portion) | Derivatives | |||||||||||||||||||||||||||
(Effective | (Effective | (Ineffective | ||||||||||||||||||||||||||||
Portion) | Portion) | Portion) | ||||||||||||||||||||||||||||
Nine Months Ended | Nine Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||
September 30, | September 30, | September 30, | ||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||
Millions | ||||||||||||||||||||||||||||||
PSEG (A) | ||||||||||||||||||||||||||||||
Energy-Related Contracts | $ | 1 | $ | 27 | Operating Revenues | $ | 11 | $ | 67 | Operating Revenues | $ | (1 | ) | $ | (1 | ) | ||||||||||||||
Energy-Related Contracts | — | (4 | ) | Energy Costs | — | (9 | ) | — | — | |||||||||||||||||||||
Interest Rate Swaps | — | — | Interest Expense | (1 | ) | (1 | ) | — | — | |||||||||||||||||||||
Total PSEG | $ | 1 | $ | 23 | $ | 10 | $ | 57 | $ | (1 | ) | $ | (1 | ) | ||||||||||||||||
Power | ||||||||||||||||||||||||||||||
Energy-Related Contracts | $ | 1 | $ | 27 | Operating Revenues | $ | 11 | $ | 67 | Operating Revenues | $ | (1 | ) | $ | (1 | ) | ||||||||||||||
Energy-Related Contracts | — | (4 | ) | Energy Costs | — | (9 | ) | — | — | |||||||||||||||||||||
Total Power | $ | 1 | $ | 23 | $ | 11 | $ | 58 | $ | (1 | ) | $ | (1 | ) | ||||||||||||||||
Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) [Table Text Block] | The following reconciles the Accumulated Other Comprehensive Income for derivative activity included in the Accumulated Other Comprehensive Loss of PSEG on a pre-tax and after-tax basis: | |||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income | Pre-Tax | After-Tax | ||||||||||||||||||||||||||||
Millions | ||||||||||||||||||||||||||||||
Balance as of December 31, 2012 | $ | 12 | $ | 7 | ||||||||||||||||||||||||||
Less: Gain Reclassified into Income | (7 | ) | (4 | ) | ||||||||||||||||||||||||||
Balance as of June 30, 2013 | $ | 5 | $ | 3 | ||||||||||||||||||||||||||
Gain Recognized in AOCI | $ | 1 | 1 | |||||||||||||||||||||||||||
Less: Gain Reclassified into Income | (3 | ) | (2 | ) | ||||||||||||||||||||||||||
Balance as of September 30, 2013 | $ | 3 | $ | 2 | ||||||||||||||||||||||||||
Schedule Of Derivative Instruments Not Designated As Hedging Instruments And Impact On Results Of Operations | ||||||||||||||||||||||||||||||
Derivatives Not Designated as Hedges | Location of Pre-Tax | Pre-Tax Gain (Loss) | ||||||||||||||||||||||||||||
Gain (Loss) | Recognized in Income | |||||||||||||||||||||||||||||
Recognized in Income | on Derivatives | |||||||||||||||||||||||||||||
on Derivatives | ||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||
Millions | ||||||||||||||||||||||||||||||
PSEG and Power | ||||||||||||||||||||||||||||||
Energy-Related Contracts | Operating Revenues | $ | 14 | $ | (90 | ) | $ | (32 | ) | $ | 145 | |||||||||||||||||||
Energy-Related Contracts | Energy Costs | 10 | 6 | 63 | (17 | ) | ||||||||||||||||||||||||
Total PSEG and Power | $ | 24 | $ | (84 | ) | $ | 31 | $ | 128 | |||||||||||||||||||||
Schedule Of Gross Volume, On Absolute Value Basis For Derivative Contracts | ||||||||||||||||||||||||||||||
Type | Notional | Total | PSEG | Power | PSE&G | |||||||||||||||||||||||||
Millions | ||||||||||||||||||||||||||||||
As of September 30, 2013 | ||||||||||||||||||||||||||||||
Natural Gas | Dth | 537 | — | 377 | 160 | |||||||||||||||||||||||||
Electricity | MWh | 247 | — | 247 | — | |||||||||||||||||||||||||
Capacity | MW days | 4 | — | — | 4 | |||||||||||||||||||||||||
FTRs | MWh | 22 | — | 22 | — | |||||||||||||||||||||||||
Interest Rate Swaps | U.S. Dollars | 850 | 850 | — | — | |||||||||||||||||||||||||
As of December 31, 2012 | ||||||||||||||||||||||||||||||
Natural Gas | Dth | 596 | — | 404 | 192 | |||||||||||||||||||||||||
Electricity | MWh | 208 | — | 208 | — | |||||||||||||||||||||||||
Capacity | MW days | 4 | — | — | 4 | |||||||||||||||||||||||||
FTRs | MWh | 19 | — | 19 | — | |||||||||||||||||||||||||
Interest Rate Swaps | U.S. Dollars | 850 | 850 | — | — | |||||||||||||||||||||||||
Coal | Tons | 1 | — | 1 | — | |||||||||||||||||||||||||
Power [Member] | ||||||||||||||||||||||||||||||
Schedule Providing Credit Risk From Others, Net Of Collateral | ||||||||||||||||||||||||||||||
Rating | Current | Securities | Net | Number of | Net Exposure of | |||||||||||||||||||||||||
Exposure | Held as | Exposure | Counterparties | Counterparties | ||||||||||||||||||||||||||
Collateral | >10% | >10% | ||||||||||||||||||||||||||||
Millions | Millions | |||||||||||||||||||||||||||||
Investment Grade—External Rating | $ | 180 | $ | 17 | $ | 180 | 1 | $ | 90 | (A) | ||||||||||||||||||||
Non-Investment Grade—External Rating | 2 | — | 2 | — | — | |||||||||||||||||||||||||
Investment Grade—No External Rating | 7 | — | 7 | — | — | |||||||||||||||||||||||||
Non-Investment Grade—No External Rating | 8 | — | 8 | — | — | |||||||||||||||||||||||||
Total | $ | 197 | $ | 17 | $ | 197 | 1 | $ | 90 | |||||||||||||||||||||
(A) | Represents net exposure with PSE&G. |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 9 Months Ended | ||||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||||
Text Block [Abstract] | |||||||||||||||||||||||||||||||
PSEG's, Power's And PSE&G's Respective Assets And (Liabilities) Measured At Fair Value On A Recurring Basis | |||||||||||||||||||||||||||||||
Recurring Fair Value Measurements as of September 30, 2013 | |||||||||||||||||||||||||||||||
Description | Total | Cash | Quoted Market Prices for Identical Assets | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs | ||||||||||||||||||||||||||
Collateral | (Level 1) | (Level 3) | |||||||||||||||||||||||||||||
Netting (D) | |||||||||||||||||||||||||||||||
Millions | |||||||||||||||||||||||||||||||
PSEG | |||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||
Derivative Contracts: | |||||||||||||||||||||||||||||||
Energy-Related Contracts (A) | $ | 249 | $ | (3 | ) | $ | — | $ | 156 | $ | 96 | ||||||||||||||||||||
Interest Rate Swaps (B) | $ | 42 | $ | — | $ | — | $ | 42 | $ | — | |||||||||||||||||||||
NDT Fund (C) | |||||||||||||||||||||||||||||||
Equity Securities | $ | 843 | $ | — | $ | 842 | $ | 1 | $ | — | |||||||||||||||||||||
Debt Securities—Govt Obligations | $ | 410 | $ | — | $ | — | $ | 410 | $ | — | |||||||||||||||||||||
Debt Securities—Other | $ | 320 | $ | — | $ | — | $ | 320 | $ | — | |||||||||||||||||||||
Other Securities | $ | 62 | $ | — | $ | — | $ | 62 | $ | — | |||||||||||||||||||||
Rabbi Trust (C) | |||||||||||||||||||||||||||||||
Equity Securities—Mutual Funds | $ | 21 | $ | — | $ | 21 | $ | — | $ | — | |||||||||||||||||||||
Debt Securities—Govt Obligations | $ | 108 | $ | — | $ | — | $ | 108 | $ | — | |||||||||||||||||||||
Debt Securities—Other | $ | 44 | $ | — | $ | — | $ | 44 | $ | — | |||||||||||||||||||||
Other Securities | $ | 2 | $ | — | $ | — | $ | 2 | $ | — | |||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||
Derivative Contracts: | |||||||||||||||||||||||||||||||
Energy-Related Contracts (A) | $ | (199 | ) | $ | 1 | $ | — | $ | (58 | ) | $ | (142 | ) | ||||||||||||||||||
Power | |||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||
Derivative Contracts: | |||||||||||||||||||||||||||||||
Energy-Related Contracts (A) | $ | 161 | $ | (3 | ) | $ | — | $ | 156 | $ | 8 | ||||||||||||||||||||
NDT Fund (C) | |||||||||||||||||||||||||||||||
Equity Securities | $ | 843 | $ | — | $ | 842 | $ | 1 | $ | — | |||||||||||||||||||||
Debt Securities—Govt Obligations | $ | 410 | $ | — | $ | — | $ | 410 | $ | — | |||||||||||||||||||||
Debt Securities—Other | $ | 320 | $ | — | $ | — | $ | 320 | $ | — | |||||||||||||||||||||
Other Securities | $ | 62 | $ | — | $ | — | $ | 62 | $ | — | |||||||||||||||||||||
Rabbi Trust (C) | |||||||||||||||||||||||||||||||
Equity Securities—Mutual Funds | $ | 5 | $ | — | $ | 5 | $ | — | $ | — | |||||||||||||||||||||
Debt Securities—Govt Obligations | $ | 23 | $ | — | $ | — | $ | 23 | $ | — | |||||||||||||||||||||
Debt Securities—Other | $ | 10 | $ | — | $ | — | $ | 10 | $ | — | |||||||||||||||||||||
Other Securities | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||
Derivative Contracts: | |||||||||||||||||||||||||||||||
Energy-Related Contracts (A) | $ | (59 | ) | $ | 1 | $ | — | $ | (58 | ) | $ | (2 | ) | ||||||||||||||||||
PSE&G | |||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||
Derivative Contracts: | |||||||||||||||||||||||||||||||
Energy-Related Contracts (A) | $ | 88 | $ | — | $ | — | $ | — | $ | 88 | |||||||||||||||||||||
Rabbi Trust (C) | |||||||||||||||||||||||||||||||
Equity Securities—Mutual Funds | $ | 5 | $ | — | $ | 5 | $ | — | $ | — | |||||||||||||||||||||
Debt Securities—Govt Obligations | $ | 26 | $ | — | $ | — | $ | 26 | $ | — | |||||||||||||||||||||
Debt Securities—Other | $ | 10 | $ | — | $ | — | $ | 10 | $ | — | |||||||||||||||||||||
Other Securities | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||
Derivative Contracts: | |||||||||||||||||||||||||||||||
Energy-Related Contracts (A) | $ | (140 | ) | $ | — | $ | — | $ | — | $ | (140 | ) | |||||||||||||||||||
Recurring Fair Value Measurements as of December 31, 2012 | |||||||||||||||||||||||||||||||
Description | Total | Cash | Quoted Market Prices for Identical Assets | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs | ||||||||||||||||||||||||||
Collateral | (Level 1) | (Level 3) | |||||||||||||||||||||||||||||
Netting (D) | |||||||||||||||||||||||||||||||
Millions | |||||||||||||||||||||||||||||||
PSEG | |||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||
Derivative Contracts: | |||||||||||||||||||||||||||||||
Energy-Related Contracts (A) | $ | 234 | $ | (3 | ) | $ | — | $ | 157 | $ | 80 | ||||||||||||||||||||
Interest Rate Swaps (B) | $ | 57 | $ | — | $ | — | $ | 57 | $ | — | |||||||||||||||||||||
NDT Fund (C) | |||||||||||||||||||||||||||||||
Equity Securities | $ | 789 | $ | — | $ | 789 | $ | — | $ | — | |||||||||||||||||||||
Debt Securities—Govt Obligations | $ | 285 | $ | — | $ | — | $ | 285 | $ | — | |||||||||||||||||||||
Debt Securities—Other | $ | 342 | $ | — | $ | — | $ | 342 | $ | — | |||||||||||||||||||||
Other Securities | $ | 124 | $ | — | $ | — | $ | 124 | $ | — | |||||||||||||||||||||
Rabbi Trust (C) | |||||||||||||||||||||||||||||||
Equity Securities—Mutual Funds | $ | 18 | $ | — | $ | 18 | $ | — | $ | — | |||||||||||||||||||||
Debt Securities—Govt Obligations | $ | 117 | $ | — | $ | — | $ | 117 | $ | — | |||||||||||||||||||||
Debt Securities—Other | $ | 47 | $ | — | $ | — | $ | 47 | $ | — | |||||||||||||||||||||
Other Securities | $ | 3 | $ | — | $ | — | $ | 3 | $ | — | |||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||
Derivative Contracts: | |||||||||||||||||||||||||||||||
Energy-Related Contracts (A) | $ | (168 | ) | $ | 5 | $ | — | $ | (62 | ) | $ | (111 | ) | ||||||||||||||||||
Power | |||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||
Derivative Contracts: | |||||||||||||||||||||||||||||||
Energy-Related Contracts (A) | $ | 167 | $ | (3 | ) | $ | — | $ | 157 | $ | 13 | ||||||||||||||||||||
NDT Fund (C) | |||||||||||||||||||||||||||||||
Equity Securities | $ | 789 | $ | — | $ | 789 | $ | — | $ | — | |||||||||||||||||||||
Debt Securities—Govt Obligations | $ | 285 | $ | — | $ | — | $ | 285 | $ | — | |||||||||||||||||||||
Debt Securities—Other | $ | 342 | $ | — | $ | — | $ | 342 | $ | — | |||||||||||||||||||||
Other Securities | $ | 124 | $ | — | $ | — | $ | 124 | $ | — | |||||||||||||||||||||
Rabbi Trust (C) | |||||||||||||||||||||||||||||||
Equity Securities—Mutual Funds | $ | 3 | $ | — | $ | 3 | $ | — | $ | — | |||||||||||||||||||||
Debt Securities—Govt Obligations | $ | 23 | $ | — | $ | — | $ | 23 | $ | — | |||||||||||||||||||||
Debt Securities—Other | $ | 9 | $ | — | $ | — | $ | 9 | $ | — | |||||||||||||||||||||
Other Securities | $ | 1 | $ | — | $ | — | $ | 1 | $ | — | |||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||
Derivative Contracts: | |||||||||||||||||||||||||||||||
Energy-Related Contracts (A) | $ | (61 | ) | $ | 5 | $ | — | $ | (62 | ) | $ | (4 | ) | ||||||||||||||||||
PSE&G | |||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||
Derivative Contracts: | |||||||||||||||||||||||||||||||
Energy Related Contracts (A) | $ | 67 | $ | — | $ | — | $ | — | $ | 67 | |||||||||||||||||||||
Rabbi Trust (C) | |||||||||||||||||||||||||||||||
Equity Securities—Mutual Funds | $ | 6 | $ | — | $ | 6 | $ | — | $ | — | |||||||||||||||||||||
Debt Securities—Govt Obligations | $ | 39 | $ | — | $ | — | $ | 39 | $ | — | |||||||||||||||||||||
Debt Securities—Other | $ | 15 | $ | — | $ | — | $ | 15 | $ | — | |||||||||||||||||||||
Other Securities | $ | 1 | $ | — | $ | — | $ | 1 | $ | — | |||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||
Derivative Contracts: | |||||||||||||||||||||||||||||||
Energy Related Contracts (A) | $ | (107 | ) | $ | — | $ | — | $ | — | $ | (107 | ) | |||||||||||||||||||
(A) | Level 2—Fair values for energy-related contracts are obtained primarily using a market-based approach. Most derivative contracts (forward purchase or sale contracts and swaps) are valued using the average of the bid/ask midpoints from multiple broker or dealer quotes or auction prices. Prices used in the valuation process are also corroborated independently by management to determine that values are based on actual transaction data or, in the absence of transactions, bid and offers for the day. Examples may include certain exchange and non-exchange traded capacity and electricity contracts and natural gas physical or swap contracts based on market prices, basis adjustments and other premiums where adjustments and premiums are not considered significant to the overall inputs. | ||||||||||||||||||||||||||||||
Level 3—For energy-related contracts, which include more complex agreements where limited observable inputs or pricing information are available, modeling techniques are employed using assumptions reflective of contractual terms, current market rates, forward price curves, discount rates and risk factors, as applicable. Fair values of other energy contracts may be based on broker quotes that we cannot corroborate with actual market transaction data. | |||||||||||||||||||||||||||||||
(B) | Interest rate swaps are valued using quoted prices on commonly quoted intervals, which are interpolated for periods different than the quoted intervals, as inputs to a market valuation model. Market inputs can generally be verified and model selection does not involve significant management judgment. | ||||||||||||||||||||||||||||||
(C) | The NDT Fund maintains investments in various equity and fixed income securities classified as “available for sale.” The Rabbi Trust maintains investments in an S&P 500 index fund and various fixed income securities classified as “available for sale.” 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). | ||||||||||||||||||||||||||||||
Level 1—Investments in marketable equity securities within the NDT Fund are primarily investments in common stocks across a broad range of industries and sectors. Most equity securities are priced utilizing the principal market close price or, in some cases, midpoint, bid or ask price (primarily Level 1). The Rabbi Trust equity index fund is valued based on quoted prices in an active market (Level 1). | |||||||||||||||||||||||||||||||
Level 2—NDT and Rabbi Trust fixed income securities are limited to investment grade corporate bonds and United States Treasury obligations or Federal Agency asset-backed securities with a wide range of maturities. Since many fixed income securities do not trade on a daily basis, they are priced using an evaluated pricing methodology 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 (primarily Level 2). Short-term investments and certain commingled temporary investments are valued using observable market prices or market parameters such as time-to-maturity, coupon rate, quality rating and current yield (primarily Level 2). | |||||||||||||||||||||||||||||||
(D) | Cash collateral netting represents collateral amounts netted against derivative assets and liabilities as permitted under the accounting guidance for Offsetting of Amounts Related to Certain Contracts | ||||||||||||||||||||||||||||||
Schedule of Quantitative Information About Level 3 Fair Value Measurements | |||||||||||||||||||||||||||||||
Quantitative Information About Level 3 Fair Value Measurements | |||||||||||||||||||||||||||||||
Significant | |||||||||||||||||||||||||||||||
Fair Value as of | Valuation | Unobservable | |||||||||||||||||||||||||||||
Commodity | Level 3 Position | 30-Sep-13 | Technique(s) | Input | Range | ||||||||||||||||||||||||||
Assets | (Liabilities) | ||||||||||||||||||||||||||||||
Millions | |||||||||||||||||||||||||||||||
Power | |||||||||||||||||||||||||||||||
Electricity | Electric Swaps | $ | 7 | $ | — | Discounted Cash Flow | Power Basis | $0 to $10/MWh | |||||||||||||||||||||||
Electricity | Electric Load Contracts | — | (2 | ) | Discounted Cash Flow | Historic Load Variability | -5% to +10% | ||||||||||||||||||||||||
Other | Various (A) | 1 | — | ||||||||||||||||||||||||||||
Total Power | $ | 8 | $ | (2 | ) | ||||||||||||||||||||||||||
PSE&G | |||||||||||||||||||||||||||||||
Gas and Capacity | Forward Contracts (B) | $ | 88 | $ | (140 | ) | Discounted Cash Flow | Long-Term Capacity Prices and Transportation Costs | (B) | ||||||||||||||||||||||
Total PSE&G | $ | 88 | $ | (140 | ) | ||||||||||||||||||||||||||
TOTAL PSEG | $ | 96 | $ | (142 | ) | ||||||||||||||||||||||||||
Quantitative Information About Level 3 Fair Value Measurements | |||||||||||||||||||||||||||||||
Commodity | Level 3 Position | Fair Value as of December 31, 2012 | Valuation | Significant | Range | ||||||||||||||||||||||||||
Technique(s) | Unobservable Input | ||||||||||||||||||||||||||||||
Assets | (Liabilities) | ||||||||||||||||||||||||||||||
Millions | |||||||||||||||||||||||||||||||
Power | |||||||||||||||||||||||||||||||
Electricity | Electric Swaps | $ | 7 | $ | (1 | ) | Discounted Cash Flow | Power Basis | $0 to $10/MWh | ||||||||||||||||||||||
Electricity | Electric Load Contracts | 1 | (2 | ) | Discounted Cash Flow | Historic Load Variability | -5% to +10% | ||||||||||||||||||||||||
Other | Various (A) | 5 | (1 | ) | |||||||||||||||||||||||||||
Total Power | $ | 13 | $ | (4 | ) | ||||||||||||||||||||||||||
PSE&G | |||||||||||||||||||||||||||||||
Gas and Capacity | Forward Contracts (C) | $ | 67 | $ | (107 | ) | Discounted Cash Flow | Long-Term Gas Basis and Capacity Prices | (C) | ||||||||||||||||||||||
Total PSE&G | $ | 67 | $ | (107 | ) | ||||||||||||||||||||||||||
TOTAL PSEG | $ | 80 | $ | (111 | ) | ||||||||||||||||||||||||||
(A) | Includes gas supply positions which are immaterial as of September 30, 2013 and December 31, 2012. Also includes long-term electric capacity positions which are immaterial as of December 31, 2012. | ||||||||||||||||||||||||||||||
(B) | Unobservable inputs for the long-term electric capacity contracts include forecasted capacity prices in the range of $100 to $400/MW day. Unobservable inputs for gas supply contracts include the weighted average cost of transporting gas in the range of $0.70 to $1 per dekatherm. | ||||||||||||||||||||||||||||||
(C) | Includes long-term electric capacity and long-term gas supply positions with various unobservable inputs. Unobservable inputs for the long-term electric capacity contracts include forecasted capacity prices in the range of $100 to $400/MW day. Significant unobservable inputs for the gas supply contracts include long-term basis prices in the range of $0 to $4/MMBTU of natural gas. | ||||||||||||||||||||||||||||||
Changes In Level 3 Assets And (Liabilities) Measured At Fair Value On A Recurring Basis | Changes in Level 3 Assets and (Liabilities) Measured at Fair Value on a Recurring Basis for the Three Months Ended September 30, 2013 | ||||||||||||||||||||||||||||||
Total Gains or (Losses) | |||||||||||||||||||||||||||||||
Realized/Unrealized | |||||||||||||||||||||||||||||||
Description | Balance as of | Included in | Included in | Purchases | Issuances/ | Transfers | Balance as of September 30, 2013 | ||||||||||||||||||||||||
1-Jul-13 | Income (A) | Regulatory Assets/ | (Sales) | Settlements | In/Out | ||||||||||||||||||||||||||
Liabilities (B) | (C) | (D) | |||||||||||||||||||||||||||||
Millions | |||||||||||||||||||||||||||||||
PSEG | |||||||||||||||||||||||||||||||
Net Derivative Assets (Liabilities) | $ | (35 | ) | $ | 1 | $ | (11 | ) | $ | — | $ | (1 | ) | $ | — | $ | (46 | ) | |||||||||||||
Power | |||||||||||||||||||||||||||||||
Net Derivative Assets (Liabilities) | $ | 6 | $ | 1 | $ | — | $ | — | $ | (1 | ) | $ | — | $ | 6 | ||||||||||||||||
PSE&G | |||||||||||||||||||||||||||||||
Net Derivative Assets (Liabilities) | $ | (41 | ) | $ | — | $ | (11 | ) | $ | — | $ | — | $ | — | $ | (52 | ) | ||||||||||||||
Changes in Level 3 Assets and (Liabilities) Measured at Fair Value on a Recurring Basis | |||||||||||||||||||||||||||||||
for the Nine Months Ended September 30, 2013 | |||||||||||||||||||||||||||||||
Total Gains or (Losses) | |||||||||||||||||||||||||||||||
Realized/Unrealized | |||||||||||||||||||||||||||||||
Description | Balance as of | Included in | Included in | Purchases | Issuances/ | Transfers | Balance as of September 30, 2013 | ||||||||||||||||||||||||
1-Jan-13 | Income (E) | Regulatory Assets/ | (Sales) | Settlements | In/Out | ||||||||||||||||||||||||||
Liabilities (B) | (C) | (D) | |||||||||||||||||||||||||||||
Millions | |||||||||||||||||||||||||||||||
PSEG | |||||||||||||||||||||||||||||||
Net Derivative Assets (Liabilities) | $ | (31 | ) | $ | (16 | ) | $ | (12 | ) | $ | — | $ | 9 | $ | 4 | $ | (46 | ) | |||||||||||||
Power | |||||||||||||||||||||||||||||||
Net Derivative Assets (Liabilities) | $ | 9 | $ | (16 | ) | $ | — | $ | — | $ | 9 | $ | 4 | $ | 6 | ||||||||||||||||
PSE&G | |||||||||||||||||||||||||||||||
Net Derivative Assets (Liabilities) | $ | (40 | ) | $ | — | $ | (12 | ) | $ | — | $ | — | $ | — | $ | (52 | ) | ||||||||||||||
Changes in Level 3 Assets and (Liabilities) Measured at Fair Value on a Recurring Basis for the Three Months Ended September 30, 2012 | |||||||||||||||||||||||||||||||
Total Gains or (Losses) | |||||||||||||||||||||||||||||||
Realized/Unrealized | |||||||||||||||||||||||||||||||
Description | Balance as of | Included in | Included in | Purchases | Issuances/ | Transfers | Balance as of September 30, 2012 | ||||||||||||||||||||||||
1-Jul-12 | Income (A) | Regulatory Assets/ | (Sales) | Settlements | In/Out | ||||||||||||||||||||||||||
Liabilities (B) | (C) | (D) | |||||||||||||||||||||||||||||
Millions | |||||||||||||||||||||||||||||||
PSEG | |||||||||||||||||||||||||||||||
Net Derivative Assets (Liabilities) | $ | (36 | ) | $ | (1 | ) | $ | 25 | $ | — | $ | (9 | ) | $ | — | $ | (21 | ) | |||||||||||||
Non-Recourse Debt | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||
Power | |||||||||||||||||||||||||||||||
Net Derivative Assets (Liabilities) | $ | 22 | $ | (1 | ) | $ | — | $ | — | $ | (9 | ) | $ | — | $ | 12 | |||||||||||||||
PSE&G | |||||||||||||||||||||||||||||||
Net Derivative Assets (Liabilities) | $ | (58 | ) | $ | — | $ | 25 | $ | — | $ | — | $ | — | $ | (33 | ) | |||||||||||||||
Changes in Level 3 Assets and (Liabilities) Measured at Fair Value on a Recurring Basis | |||||||||||||||||||||||||||||||
for the Nine Months Ended September 30, 2012 | |||||||||||||||||||||||||||||||
Total Gains or (Losses) | |||||||||||||||||||||||||||||||
Realized/Unrealized | |||||||||||||||||||||||||||||||
Description | Balance as of | Included in | Included in | Purchases | Issuances/ | Transfers | Balance as of September 30, 2012 | ||||||||||||||||||||||||
1-Jan-12 | Income (E) | Regulatory Assets/ | (Sales) | Settlements | In/Out | ||||||||||||||||||||||||||
Liabilities (B) | (C) | (D) | |||||||||||||||||||||||||||||
Millions | |||||||||||||||||||||||||||||||
PSEG | |||||||||||||||||||||||||||||||
Net Derivative Assets (Liabilities) | $ | 21 | $ | 40 | $ | (30 | ) | $ | — | $ | (52 | ) | $ | — | $ | (21 | ) | ||||||||||||||
Non-Recourse Debt | $ | (50 | ) | $ | 50 | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
Power | |||||||||||||||||||||||||||||||
Net Derivative Assets (Liabilities) | $ | 24 | $ | 40 | $ | — | $ | — | $ | (52 | ) | $ | — | $ | 12 | ||||||||||||||||
PSE&G | |||||||||||||||||||||||||||||||
Net Derivative Assets (Liabilities) | $ | (3 | ) | $ | — | $ | (30 | ) | $ | — | $ | — | $ | — | $ | (33 | ) | ||||||||||||||
(A) | PSEG’s and Power’s gains and losses attributable to changes in net derivative assets and liabilities include $1 million and $(1) million in Operating Income in 2013 and 2012, respectively. The $1 million in Operating Income in 2013 is unrealized. Of the $(1) million in Operating Income in 2012, $(10) million is unrealized. Energy Holdings' release from its obligation under the non-recourse debt is included in PSEG's Operating Income for 2012 and is offset by the write-off of the related assets. | ||||||||||||||||||||||||||||||
(B) | Mainly includes gains/losses on PSE&G’s derivative contracts that are not included in either earnings or OCI, as they are deferred as a Regulatory Asset/Liability and are expected to be recovered from/returned to PSE&G’s customers. | ||||||||||||||||||||||||||||||
(C) | Represents $(1) million and $(9) million in settlements for the three months ended September 30, 2013 and 2012. Includes $9 million and $(52) million in settlements for the nine months ended September 30, 2013 and 2012, respectively. | ||||||||||||||||||||||||||||||
(D) | During the nine months ended September 30, 2013, $4 million of net derivatives assets/liabilities were transferred from Level 3 to Level 2 due to more observable pricing for the underlying securities. The transfer was recognized as of the beginning of the first quarter (i.e. the quarter in which the transfer occurred), as per PSEG's policy. There were no transfers among levels during the three months ended September 30, 2013 and 2012 and the nine months ended September 30, 2012. | ||||||||||||||||||||||||||||||
(E) | PSEG’s and Power’s gains and losses attributable to changes in net derivative assets and liabilities include $(16) million and $40 million in Operating Income in 2013 and 2012, respectively. Of the $(16) million in Operating Income in 2013, $(7) million is unrealized. Of the $40 million in Operating Income in 2012, $(12) million is unrealized. Energy Holdings' release from its obligation under the non-recourse debt is included in PSEG's Operating Income for 2012 and is offset by the write-off of the related assets. | ||||||||||||||||||||||||||||||
Schedule Of Fair Value Of Debt Table [Text Block] | |||||||||||||||||||||||||||||||
30-Sep-13 | 31-Dec-12 | ||||||||||||||||||||||||||||||
Carrying | Fair | Carrying | Fair | ||||||||||||||||||||||||||||
Amount | Value | Amount | Value | ||||||||||||||||||||||||||||
Millions | |||||||||||||||||||||||||||||||
Long-Term Debt: | |||||||||||||||||||||||||||||||
PSEG (Parent) (A) | $ | 27 | $ | 42 | $ | 38 | $ | 57 | |||||||||||||||||||||||
Power -Recourse Debt (B) | 2,041 | 2,355 | 2,340 | 2,818 | |||||||||||||||||||||||||||
PSE&G (B) | 5,841 | 6,058 | 4,795 | 5,606 | |||||||||||||||||||||||||||
Transition Funding (PSE&G) (B) | 534 | 578 | 690 | 765 | |||||||||||||||||||||||||||
Transition Funding II (PSE&G) (B) | 27 | 28 | 32 | 34 | |||||||||||||||||||||||||||
Energy Holdings: | |||||||||||||||||||||||||||||||
Project Level, Non-Recourse Debt (C) | 16 | 16 | 44 | 44 | |||||||||||||||||||||||||||
Total Long-Term Debt | $ | 8,486 | $ | 9,077 | $ | 7,939 | $ | 9,324 | |||||||||||||||||||||||
(A) | Fair value represents net offsets to debt resulting from adjustments from interest rate swaps entered into to hedge certain debt at Power. Carrying amount represents such fair value reduced by the unamortized premium resulting from a debt exchange entered into between Power and Energy Holdings. | ||||||||||||||||||||||||||||||
(B) | The debt fair valuation is based on the present value of each bond’s future cash flows. The discount rates used in the present value analysis are based on an estimate of new issue bond yields across the treasury curve. When a bond has embedded options, an interest rate model is used to reflect the impact of interest rate volatility into the analysis (primarily Level 2 measurements). | ||||||||||||||||||||||||||||||
(C) | Non-recourse project debt is valued as equivalent to the amortized cost and is classified as a Level 3 measurement. |
Other_Income_and_Deductions_Ta
Other Income and Deductions (Tables) | 9 Months Ended | |||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||
Schedule Of Other Income | ||||||||||||||||||
Other Income | Power | PSE&G | Other (A) | Consolidated | ||||||||||||||
Millions | ||||||||||||||||||
Three Months Ended September 30, 2013 | ||||||||||||||||||
NDT Fund Gains, Interest, Dividend and Other Income | $ | 45 | $ | — | $ | — | $ | 45 | ||||||||||
Allowance of Funds Used During Construction | — | 5 | — | 5 | ||||||||||||||
Solar Loan Interest | — | 7 | — | 7 | ||||||||||||||
Other | — | 1 | 1 | 2 | ||||||||||||||
Total Other Income | $ | 45 | $ | 13 | $ | 1 | $ | 59 | ||||||||||
Three Months Ended September 30, 2012 | ||||||||||||||||||
NDT Fund Gains, Interest, Dividend and Other Income | $ | 103 | $ | — | $ | — | $ | 103 | ||||||||||
Allowance of Funds Used During Construction | — | 6 | — | 6 | ||||||||||||||
Solar Loan Interest | — | 5 | — | 5 | ||||||||||||||
Other | 1 | 5 | 1 | 7 | ||||||||||||||
Total Other Income | $ | 104 | $ | 16 | $ | 1 | $ | 121 | ||||||||||
Nine Months Ended September 30, 2013 | ||||||||||||||||||
NDT Fund Gains, Interest, Dividend and Other Income | $ | 125 | $ | — | $ | — | $ | 125 | ||||||||||
Allowance of Funds Used During Construction | — | 17 | — | 17 | ||||||||||||||
Solar Loan Interest | — | 18 | — | 18 | ||||||||||||||
Other | 2 | 6 | 4 | 12 | ||||||||||||||
Total Other Income | $ | 127 | $ | 41 | $ | 4 | $ | 172 | ||||||||||
Nine Months Ended September 30, 2012 | ||||||||||||||||||
NDT Fund Gains, Interest, Dividend and Other Income | $ | 167 | $ | — | $ | — | $ | 167 | ||||||||||
Allowance of Funds Used During Construction | — | 17 | — | 17 | ||||||||||||||
Solar Loan Interest | — | 13 | — | 13 | ||||||||||||||
Other | 4 | 9 | 6 | 19 | ||||||||||||||
Total Other Income | $ | 171 | $ | 39 | $ | 6 | $ | 216 | ||||||||||
Schedule Of Other Deductions | ||||||||||||||||||
Other Deductions | Power | PSE&G | Other (A) | Consolidated | ||||||||||||||
Millions | ||||||||||||||||||
Three Months Ended September 30, 2013 | ||||||||||||||||||
NDT Fund Realized Losses and Expenses | $ | 11 | $ | — | $ | — | $ | 11 | ||||||||||
Other | — | 1 | — | 1 | ||||||||||||||
Total Other Deductions | $ | 11 | $ | 1 | $ | — | $ | 12 | ||||||||||
Three Months Ended September 30, 2012 | ||||||||||||||||||
NDT Fund Realized Losses and Expenses | $ | 20 | $ | — | $ | — | $ | 20 | ||||||||||
Other | — | 6 | — | 6 | ||||||||||||||
Total Other Deductions | $ | 20 | $ | 6 | $ | — | $ | 26 | ||||||||||
Nine Months Ended September 30, 2013 | ||||||||||||||||||
NDT Fund Realized Losses and Expenses | $ | 40 | $ | — | $ | — | $ | 40 | ||||||||||
Other | 9 | 3 | 2 | 14 | ||||||||||||||
Total Other Deductions | $ | 49 | $ | 3 | $ | 2 | $ | 54 | ||||||||||
Nine Months Ended September 30, 2012 | ||||||||||||||||||
NDT Fund Realized Losses and Expenses | $ | 45 | $ | — | $ | — | $ | 45 | ||||||||||
Other | 7 | 8 | 1 | 16 | ||||||||||||||
Total Other Deductions | $ | 52 | $ | 8 | $ | 1 | $ | 61 | ||||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Text Block [Abstract] | ||||||||||||||
Schedule Of Effective Tax Rates | ||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||
September 30, | September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
PSEG | 41 | % | 41 | % | 40.5 | % | 36.3 | % | ||||||
Power | 41 | % | 42.4 | % | 40.6 | % | 41 | % | ||||||
PSE&G | 40.6 | % | 39.9 | % | 40 | % | 35.4 | % | ||||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Loss), Net of Tax (Tables) | 9 Months Ended | ||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||||||||||||||||||||||||||
Schedule of Changes in Accumulated Other Comprehensive Income by Component | |||||||||||||||||||||||||||||
Other Comprehensive Income (Loss) | |||||||||||||||||||||||||||||
PSEG | Three Months Ended September 30, 2013 | ||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | Derivative Contracts | Pension and OPEB Plans | Available-for -Sale Securities | Total | |||||||||||||||||||||||||
Millions | |||||||||||||||||||||||||||||
Balance as of June 30, 2013 | $ | 3 | $ | (466 | ) | $ | 101 | $ | (362 | ) | |||||||||||||||||||
Other Comprehensive Income before Reclassifications | 1 | — | 27 | 28 | |||||||||||||||||||||||||
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) | (2 | ) | 9 | (11 | ) | (4 | ) | ||||||||||||||||||||||
Net Current Period Other Comprehensive Income (Loss) | (1 | ) | 9 | 16 | 24 | ||||||||||||||||||||||||
Balance as of September 30, 2013 | $ | 2 | $ | (457 | ) | $ | 117 | $ | (338 | ) | |||||||||||||||||||
Other Comprehensive Income (Loss) | |||||||||||||||||||||||||||||
Power | Three Months Ended September 30, 2013 | ||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | Derivative Contracts | Pension and OPEB Plans | Available-for -Sale Securities | Total | |||||||||||||||||||||||||
Millions | |||||||||||||||||||||||||||||
Balance as of June 30, 2013 | $ | 4 | $ | (405 | ) | $ | 98 | $ | (303 | ) | |||||||||||||||||||
Other Comprehensive Income before Reclassifications | 1 | — | 28 | 29 | |||||||||||||||||||||||||
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) | (2 | ) | 8 | (11 | ) | (5 | ) | ||||||||||||||||||||||
Net Current Period Other Comprehensive Income (Loss) | (1 | ) | 8 | 17 | 24 | ||||||||||||||||||||||||
Balance as of September 30, 2013 | $ | 3 | $ | (397 | ) | $ | 115 | $ | (279 | ) | |||||||||||||||||||
Other Comprehensive Income (Loss) | |||||||||||||||||||||||||||||
PSEG | Nine Months Ended September 30, 2013 | ||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | Derivative Contracts | Pension and OPEB Plans | Available-for -Sale Securities | Total | |||||||||||||||||||||||||
Millions | |||||||||||||||||||||||||||||
Balance as of December 31, 2012 | $ | 7 | $ | (485 | ) | $ | 90 | $ | (388 | ) | |||||||||||||||||||
Other Comprehensive Income before Reclassifications | 1 | — | 53 | 54 | |||||||||||||||||||||||||
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) | (6 | ) | 28 | (26 | ) | (4 | ) | ||||||||||||||||||||||
Net Current Period Other Comprehensive Income (Loss) | (5 | ) | 28 | 27 | 50 | ||||||||||||||||||||||||
Balance as of September 30, 2013 | $ | 2 | $ | (457 | ) | $ | 117 | $ | (338 | ) | |||||||||||||||||||
Other Comprehensive Income (Loss) | |||||||||||||||||||||||||||||
Power | Nine Months Ended September 30, 2013 | ||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | Derivative Contracts | Pension and OPEB Plans | Available-for -Sale Securities | Total | |||||||||||||||||||||||||
Millions | |||||||||||||||||||||||||||||
Balance as of December 31, 2012 | $ | 9 | $ | (422 | ) | $ | 85 | $ | (328 | ) | |||||||||||||||||||
Other Comprehensive Income before Reclassifications | 1 | — | 56 | 57 | |||||||||||||||||||||||||
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) | (7 | ) | 25 | (26 | ) | (8 | ) | ||||||||||||||||||||||
Net Current Period Other Comprehensive Income (Loss) | (6 | ) | 25 | 30 | 49 | ||||||||||||||||||||||||
Balance as of September 30, 2013 | $ | 3 | $ | (397 | ) | $ | 115 | $ | (279 | ) | |||||||||||||||||||
Reclassifications out of Accumulated Other Comprehensive Income | |||||||||||||||||||||||||||||
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) to Income Statement | |||||||||||||||||||||||||||||
PSEG | Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||
30-Sep-13 | 30-Sep-13 | ||||||||||||||||||||||||||||
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 | Pre-Tax Amount | Tax (Expense) Benefit | After-Tax Amount | ||||||||||||||||||||||
Millions | |||||||||||||||||||||||||||||
Cash Flow Hedges | |||||||||||||||||||||||||||||
Energy Related Contracts | Operating Revenues | $ | 3 | $ | (1 | ) | $ | 2 | $ | 11 | $ | (4 | ) | $ | 7 | ||||||||||||||
Interest Rate Swaps | Interest Expense | — | — | — | (1 | ) | — | $ | (1 | ) | |||||||||||||||||||
Pension and OPEB Plans | |||||||||||||||||||||||||||||
Amortization of Prior Service (Cost) Credit | Operation and Maintenance Expense | 3 | (1 | ) | 2 | 8 | (3 | ) | 5 | ||||||||||||||||||||
Amortization of Actuarial Loss | Operation and Maintenance Expense | (18 | ) | 7 | (11 | ) | (56 | ) | 23 | (33 | ) | ||||||||||||||||||
Available-for-Sale Securities | |||||||||||||||||||||||||||||
Realized Gains | Other Income | 35 | (18 | ) | 17 | 99 | (51 | ) | 48 | ||||||||||||||||||||
Realized Losses | Other Deductions | (9 | ) | 4 | (5 | ) | (37 | ) | 18 | (19 | ) | ||||||||||||||||||
Other-Than-Temporary Impairments | Other-Than-Temporary Impairments | (3 | ) | 2 | (1 | ) | (7 | ) | 4 | (3 | ) | ||||||||||||||||||
Total | $ | 11 | $ | (7 | ) | $ | 4 | $ | 17 | $ | (13 | ) | $ | 4 | |||||||||||||||
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) to Income Statement | |||||||||||||||||||||||||||||
Power | Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||
30-Sep-13 | 30-Sep-13 | ||||||||||||||||||||||||||||
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 | Pre-Tax Amount | Tax (Expense) Benefit | After-Tax Amount | ||||||||||||||||||||||
Millions | |||||||||||||||||||||||||||||
Cash Flow Hedges | |||||||||||||||||||||||||||||
Energy Related Contracts | Operating Revenues | $ | 3 | $ | (1 | ) | $ | 2 | $ | 11 | $ | (4 | ) | $ | 7 | ||||||||||||||
Pension and OPEB Plans | |||||||||||||||||||||||||||||
Amortization of Prior Service (Cost) Credit | Operation and Maintenance Expense | 3 | (1 | ) | 2 | 7 | (3 | ) | 4 | ||||||||||||||||||||
Amortization of Actuarial Loss | Operation and Maintenance Expense | (17 | ) | 7 | (10 | ) | (49 | ) | 20 | (29 | ) | ||||||||||||||||||
Available-for-Sale Securities | |||||||||||||||||||||||||||||
Realized Gains | Other Income | 35 | (18 | ) | 17 | 95 | (49 | ) | 46 | ||||||||||||||||||||
Realized Losses | Other Deductions | (9 | ) | 4 | (5 | ) | (34 | ) | 17 | (17 | ) | ||||||||||||||||||
Other-Than-Temporary Impairments | Other-Than-Temporary Impairments | (3 | ) | 2 | (1 | ) | (7 | ) | 4 | (3 | ) | ||||||||||||||||||
Total | $ | 12 | $ | (7 | ) | $ | 5 | $ | 23 | $ | (15 | ) | $ | 8 | |||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) | |||||||||||||||||||||||||||||
Balance as of December 31, 2011 | Other Comprehensive Income (Loss) | Balance as of September 30, 2012 | |||||||||||||||||||||||||||
Nine Months Ended | |||||||||||||||||||||||||||||
30-Sep-12 | |||||||||||||||||||||||||||||
Power | PSE&G | Other | |||||||||||||||||||||||||||
Millions | |||||||||||||||||||||||||||||
Derivative Contracts | $ | 31 | $ | (21 | ) | $ | — | $ | 1 | $ | 11 | ||||||||||||||||||
Pension and OPEB Plans | (438 | ) | 21 | — | 2 | (415 | ) | ||||||||||||||||||||||
Available-for-Sale Securities | 70 | 11 | — | 1 | 82 | ||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | $ | (337 | ) | $ | 11 | $ | — | $ | 4 | $ | (322 | ) | |||||||||||||||||
Earnings_Per_Share_EPS_and_Div1
Earnings Per Share (EPS) and Dividends (Tables) | 9 Months Ended | |||||||||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||||||||
Text Block [Abstract] | ||||||||||||||||||||||||||||||||||
Basic And Diluted Earnings Per Share Computation | ||||||||||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||||
Basic | Diluted | Basic | Diluted | Basic | Diluted | Basic | Diluted | |||||||||||||||||||||||||||
EPS Numerator (Millions) | ||||||||||||||||||||||||||||||||||
Net Income | $ | 390 | $ | 390 | $ | 347 | $ | 347 | $ | 1,043 | $ | 1,043 | $ | 1,051 | $ | 1,051 | ||||||||||||||||||
EPS Denominator (Thousands) | ||||||||||||||||||||||||||||||||||
Weighted Average Common Shares Outstanding | 505,858 | 505,858 | 505,914 | 505,914 | 505,900 | 505,900 | 505,942 | 505,942 | ||||||||||||||||||||||||||
Effect of Stock Based Compensation Awards | — | 1,836 | — | 1,197 | — | 1,533 | — | 1,095 | ||||||||||||||||||||||||||
Total Shares | 505,858 | 507,694 | 505,914 | 507,111 | 505,900 | 507,433 | 505,942 | 507,037 | ||||||||||||||||||||||||||
EPS | ||||||||||||||||||||||||||||||||||
Net Income | $ | 0.77 | $ | 0.77 | $ | 0.69 | $ | 0.68 | $ | 2.06 | $ | 2.06 | $ | 2.08 | $ | 2.07 | ||||||||||||||||||
Dividend Payments On Common Stock | ||||||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||||||||||||
Dividend Payments on Common Stock | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||||||
Per Share | $ | 0.36 | $ | 0.355 | $ | 1.08 | $ | 1.065 | ||||||||||||||||||||||||||
in Millions | $ | 182 | $ | 180 | $ | 546 | $ | 538 | ||||||||||||||||||||||||||
Financial_Information_By_Busin1
Financial Information By Business Segments (Tables) | 9 Months Ended | |||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||
Text Block [Abstract] | ||||||||||||||||||||||
Financial Information By Business Segments | ||||||||||||||||||||||
Power | PSE&G | Energy | Other (A) | Consolidated | ||||||||||||||||||
Holdings | ||||||||||||||||||||||
Millions | ||||||||||||||||||||||
Three Months Ended September 30, 2013 | ||||||||||||||||||||||
Total Operating Revenues | $ | 1,169 | $ | 1,666 | $ | 8 | $ | (289 | ) | $ | 2,554 | |||||||||||
Income (Loss) From Continuing Operations | 221 | 168 | (3 | ) | 4 | 390 | ||||||||||||||||
Net Income (Loss) | 221 | 168 | (3 | ) | 4 | 390 | ||||||||||||||||
Segment Earnings (Loss) | 221 | 168 | (3 | ) | 4 | 390 | ||||||||||||||||
Gross Additions to Long-Lived Assets | 197 | 480 | 13 | 6 | 696 | |||||||||||||||||
Three Months Ended September 30, 2012 | ||||||||||||||||||||||
Total Operating Revenues | $ | 1,038 | $ | 1,683 | $ | 15 | $ | (334 | ) | $ | 2,402 | |||||||||||
Income (Loss) From Continuing Operations | 181 | 155 | 7 | 4 | 347 | |||||||||||||||||
Net Income (Loss) | 181 | 155 | 7 | 4 | 347 | |||||||||||||||||
Segment Earnings (Loss) | 181 | 155 | 7 | 4 | 347 | |||||||||||||||||
Gross Additions to Long-Lived Assets | 149 | 499 | 30 | 11 | 689 | |||||||||||||||||
Nine Months Ended September 30, 2013 | ||||||||||||||||||||||
Total Operating Revenues | $ | 3,806 | $ | 5,084 | $ | 42 | $ | (1,282 | ) | $ | 7,650 | |||||||||||
Income (Loss) From Continuing Operations | 562 | 468 | 1 | 12 | 1,043 | |||||||||||||||||
Net Income (Loss) | 562 | 468 | 1 | 12 | 1,043 | |||||||||||||||||
Segment Earnings (Loss) | 562 | 468 | 1 | 12 | 1,043 | |||||||||||||||||
Gross Additions to Long-Lived Assets | 419 | 1,628 | 40 | 15 | 2,102 | |||||||||||||||||
Nine Months Ended September 30, 2012 | ||||||||||||||||||||||
Total Operating Revenues | $ | 3,584 | $ | 5,029 | $ | 49 | $ | (1,287 | ) | $ | 7,375 | |||||||||||
Income (Loss) From Continuing Operations | 538 | 453 | 49 | 11 | 1,051 | |||||||||||||||||
Net Income (Loss) | 538 | 453 | 49 | 11 | 1,051 | |||||||||||||||||
Segment Earnings (Loss) | 538 | 453 | 49 | 11 | 1,051 | |||||||||||||||||
Gross Additions to Long-Lived Assets | 493 | 1,369 | 85 | 22 | 1,969 | |||||||||||||||||
As of September 30, 2013 | ||||||||||||||||||||||
Total Assets | $ | 10,721 | $ | 20,330 | $ | 1,448 | $ | 111 | $ | 32,610 | ||||||||||||
Investments in Equity Method Subsidiaries | $ | 40 | $ | — | $ | 100 | $ | — | $ | 140 | ||||||||||||
As of December 31, 2012 | ||||||||||||||||||||||
Total Assets | $ | 11,032 | $ | 19,223 | $ | 1,454 | $ | 16 | $ | 31,725 | ||||||||||||
Investments in Equity Method Subsidiaries | $ | 40 | $ | — | $ | 94 | $ | — | $ | 134 | ||||||||||||
(A) | Other activities include amounts applicable to PSEG (as parent company), Services and intercompany eliminations, primarily relating to intercompany transactions between Power and PSE&G. No gains or losses are recorded on any intercompany transactions; rather, all intercompany transactions are priced in accordance with applicable regulations, including affiliate pricing rules, or in the case of the BGS and BGSS contracts between Power and PSE&G, at rates prescribed by the BPU. For a further discussion of the intercompany transactions between Power and PSE&G, see Note 18. Related-Party Transactions. |
RelatedParty_Transactions_Tabl
Related-Party Transactions (Tables) | 9 Months Ended | |||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||
Power [Member] | ||||||||||||||||||
Schedule Of Related Party Transactions, Revenue | ||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||
September 30, | September 30, | |||||||||||||||||
Related-Party Transactions | 2013 | 2012 | 2013 | 2012 | ||||||||||||||
Millions | ||||||||||||||||||
Revenue from Affiliates: | ||||||||||||||||||
Billings to PSE&G through BGSS (A) | $ | 48 | $ | 67 | $ | 654 | $ | 630 | ||||||||||
Billings to PSE&G through BGS (A) | 236 | 258 | 621 | 639 | ||||||||||||||
Total Revenue from Affiliates | $ | 284 | $ | 325 | $ | 1,275 | $ | 1,269 | ||||||||||
Expense Billings from Affiliates: | ||||||||||||||||||
Administrative Billings from Services (B) | $ | (43 | ) | $ | (38 | ) | $ | (131 | ) | $ | (110 | ) | ||||||
Total Expense Billings from Affiliates | $ | (43 | ) | $ | (38 | ) | $ | (131 | ) | $ | (110 | ) | ||||||
Schedule Of Related Party Transactions, Receivables | ||||||||||||||||||
As of | As of | |||||||||||||||||
Related-Party Transactions | 30-Sep-13 | 31-Dec-12 | ||||||||||||||||
Millions | ||||||||||||||||||
Receivables from PSE&G through BGS and BGSS Contracts (A) | $ | 87 | $ | 238 | ||||||||||||||
Receivables from PSE&G Related to Gas Supply Hedges for BGSS (A) | 28 | 27 | ||||||||||||||||
Receivable from (Payable to) Services (B) | (26 | ) | (31 | ) | ||||||||||||||
Tax Receivable from (Payable to) PSEG (C) | (54 | ) | 111 | |||||||||||||||
Receivable from (Payable to) PSEG | (1 | ) | (5 | ) | ||||||||||||||
Accounts Receivable (Payable)—Affiliated Companies, net | $ | 34 | $ | 340 | ||||||||||||||
Short-Term Loan to Affiliate (Demand Note to PSEG) (D) | $ | 417 | $ | 574 | ||||||||||||||
Working Capital Advances to Services (E) | $ | 17 | $ | 17 | ||||||||||||||
Long-Term Accrued Taxes Receivable (Payable) (C) | $ | (50 | ) | $ | (50 | ) | ||||||||||||
PSE And G [Member] | ||||||||||||||||||
Schedule Of Related Party Transactions, Revenue | ||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||
September 30, | September 30, | |||||||||||||||||
Related-Party Transactions | 2013 | 2012 | 2013 | 2012 | ||||||||||||||
Millions | ||||||||||||||||||
Expense Billings from Affiliates: | ||||||||||||||||||
Billings from Power through BGSS (A) | $ | (48 | ) | $ | (67 | ) | $ | (654 | ) | $ | (630 | ) | ||||||
Billings from Power through BGS (A) | (236 | ) | (258 | ) | (621 | ) | (639 | ) | ||||||||||
Administrative Billings from Services (B) | (61 | ) | (58 | ) | (184 | ) | (165 | ) | ||||||||||
Total Expense Billings from Affiliates | $ | (345 | ) | $ | (383 | ) | $ | (1,459 | ) | $ | (1,434 | ) | ||||||
Schedule Of Related Party Transactions, Payables | ||||||||||||||||||
As of | As of | |||||||||||||||||
Related-Party Transactions | 30-Sep-13 | 31-Dec-12 | ||||||||||||||||
Millions | ||||||||||||||||||
Payable to Power through BGS and BGSS Contracts (A) | $ | (87 | ) | $ | (238 | ) | ||||||||||||
Payable to Power Related to Gas Supply Hedges for BGSS (A) | (28 | ) | (27 | ) | ||||||||||||||
Payable to Power for SREC Liability (F) | — | (7 | ) | |||||||||||||||
Receivable from (Payable to) Services (B) | (58 | ) | (65 | ) | ||||||||||||||
Tax Receivable from (Payable to) PSEG (C) | 263 | 256 | ||||||||||||||||
Receivable from (Payable to) PSEG | 3 | 6 | ||||||||||||||||
Receivable from Energy Holdings | 1 | 2 | ||||||||||||||||
Accounts Receivable (Payable)—Affiliated Companies, net | $ | 94 | $ | (73 | ) | |||||||||||||
Working Capital Advances to Services (E) | $ | 33 | $ | 33 | ||||||||||||||
Long-Term Accrued Taxes Receivable (Payable) (C) | $ | (48 | ) | $ | (32 | ) | ||||||||||||
Guarantees_of_Debt_Tables
Guarantees of Debt (Tables) (Power [Member]) | 9 Months Ended | |||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||
Power [Member] | ||||||||||||||||||||||
Schedule Of Financial Statements Of Guarantors | ||||||||||||||||||||||
Power | Guarantor | Other | Consolidating | Consolidated | ||||||||||||||||||
Subsidiaries | Subsidiaries | Adjustments | ||||||||||||||||||||
Millions | ||||||||||||||||||||||
Three Months Ended September 30, 2013 | ||||||||||||||||||||||
Operating Revenues | $ | — | $ | 1,511 | $ | 66 | $ | (408 | ) | $ | 1,169 | |||||||||||
Operating Expenses | 2 | 1,145 | 62 | (409 | ) | 800 | ||||||||||||||||
Operating Income (Loss) | (2 | ) | 366 | 4 | 1 | 369 | ||||||||||||||||
Equity Earnings (Losses) of Subsidiaries | 226 | (1 | ) | — | (225 | ) | — | |||||||||||||||
Other Income | 8 | 47 | — | (10 | ) | 45 | ||||||||||||||||
Other Deductions | 1 | (11 | ) | — | (1 | ) | (11 | ) | ||||||||||||||
Other-Than-Temporary Impairments | — | (3 | ) | — | — | (3 | ) | |||||||||||||||
Interest Expense | (19 | ) | (13 | ) | (4 | ) | 10 | (26 | ) | |||||||||||||
Income Tax Benefit (Expense) | 7 | (160 | ) | — | — | (153 | ) | |||||||||||||||
Net Income (Loss) | $ | 221 | $ | 225 | $ | — | $ | (225 | ) | $ | 221 | |||||||||||
Comprehensive Income (Loss) | $ | 245 | $ | 242 | $ | — | $ | (242 | ) | $ | 245 | |||||||||||
Three Months Ended September 30, 2012 | ||||||||||||||||||||||
Operating Revenues | $ | — | $ | 1,358 | $ | 36 | $ | (356 | ) | $ | 1,038 | |||||||||||
Operating Expenses | (1 | ) | 1,095 | 32 | (355 | ) | 771 | |||||||||||||||
Operating Income (Loss) | 1 | 263 | 4 | (1 | ) | 267 | ||||||||||||||||
Equity Earnings (Losses) of Subsidiaries | 191 | — | — | (191 | ) | — | ||||||||||||||||
Other Income | 11 | 106 | — | (13 | ) | 104 | ||||||||||||||||
Other Deductions | — | (20 | ) | — | — | (20 | ) | |||||||||||||||
Other-Than-Temporary Impairments | — | (2 | ) | — | — | (2 | ) | |||||||||||||||
Interest Expense | (29 | ) | (15 | ) | (5 | ) | 14 | (35 | ) | |||||||||||||
Income Tax Benefit (Expense) | 7 | (142 | ) | 1 | 1 | (133 | ) | |||||||||||||||
Net Income (Loss) | $ | 181 | $ | 190 | $ | — | $ | (190 | ) | $ | 181 | |||||||||||
Comprehensive Income (Loss) | $ | 166 | $ | 168 | $ | — | $ | (168 | ) | $ | 166 | |||||||||||
Power | Guarantor | Other | Consolidating | Consolidated | ||||||||||||||||||
Subsidiaries | Subsidiaries | Adjustments | ||||||||||||||||||||
Millions | ||||||||||||||||||||||
Nine Months Ended September 30, 2013 | ||||||||||||||||||||||
Operating Revenues | $ | — | $ | 4,849 | $ | 133 | $ | (1,176 | ) | $ | 3,806 | |||||||||||
Operating Expenses | 6 | 3,894 | 123 | (1,176 | ) | 2,847 | ||||||||||||||||
Operating Income (Loss) | (6 | ) | 955 | 10 | — | 959 | ||||||||||||||||
Equity Earnings (Losses) of Subsidiaries | 588 | (3 | ) | — | (585 | ) | — | |||||||||||||||
Other Income | 27 | 130 | — | (30 | ) | 127 | ||||||||||||||||
Other Deductions | (9 | ) | (40 | ) | — | — | (49 | ) | ||||||||||||||
Other-Than-Temporary | — | (7 | ) | — | — | (7 | ) | |||||||||||||||
Impairments | ||||||||||||||||||||||
Interest Expense | (72 | ) | (29 | ) | (14 | ) | 30 | (85 | ) | |||||||||||||
Income Tax Benefit (Expense) | 34 | (419 | ) | 2 | — | (383 | ) | |||||||||||||||
Net Income (Loss) | $ | 562 | $ | 587 | $ | (2 | ) | $ | (585 | ) | $ | 562 | ||||||||||
Comprehensive Income (Loss) | $ | 611 | $ | 612 | $ | (2 | ) | $ | (610 | ) | $ | 611 | ||||||||||
Nine Months Ended September 30, 2013 | ||||||||||||||||||||||
Net Cash Provided By (Used In) | $ | 425 | $ | 1,360 | $ | 5 | $ | (506 | ) | $ | 1,284 | |||||||||||
Operating Activities | ||||||||||||||||||||||
Net Cash Provided By (Used In) | $ | 569 | $ | (869 | ) | $ | (1 | ) | $ | 11 | $ | (290 | ) | |||||||||
Investing Activities | ||||||||||||||||||||||
Net Cash Provided By (Used In) | $ | (990 | ) | $ | (492 | ) | $ | (4 | ) | $ | 494 | $ | (992 | ) | ||||||||
Financing Activities | ||||||||||||||||||||||
Nine Months Ended September 30, 2012 | ||||||||||||||||||||||
Operating Revenues | $ | — | $ | 4,560 | $ | 93 | $ | (1,069 | ) | $ | 3,584 | |||||||||||
Operating Expenses | (1 | ) | 3,663 | 87 | (1,069 | ) | 2,680 | |||||||||||||||
Operating Income (Loss) | 1 | 897 | 6 | — | 904 | |||||||||||||||||
Equity Earnings (Losses) of Subsidiaries | 567 | (4 | ) | — | (563 | ) | — | |||||||||||||||
Other Income | 35 | 176 | — | (40 | ) | 171 | ||||||||||||||||
Other Deductions | (7 | ) | (45 | ) | — | — | (52 | ) | ||||||||||||||
Other-Than-Temporary | — | (14 | ) | — | — | (14 | ) | |||||||||||||||
Impairments | ||||||||||||||||||||||
Interest Expense | (89 | ) | (35 | ) | (13 | ) | 40 | (97 | ) | |||||||||||||
Income Tax Benefit (Expense) | 31 | (409 | ) | 3 | 1 | (374 | ) | |||||||||||||||
Net Income (Loss) | $ | 538 | $ | 566 | $ | (4 | ) | $ | (562 | ) | $ | 538 | ||||||||||
Comprehensive Income (Loss) | $ | 549 | $ | 556 | $ | (4 | ) | $ | (552 | ) | $ | 549 | ||||||||||
Nine Months Ended September 30, 2012 | ||||||||||||||||||||||
Net Cash Provided By (Used In) | $ | 409 | $ | 1,259 | $ | (3 | ) | $ | (493 | ) | $ | 1,172 | ||||||||||
Operating Activities | ||||||||||||||||||||||
Net Cash Provided By (Used In) | $ | 257 | $ | (897 | ) | $ | (24 | ) | $ | 158 | $ | (506 | ) | |||||||||
Investing Activities | ||||||||||||||||||||||
Net Cash Provided By (Used In) | $ | (666 | ) | $ | (368 | ) | $ | 26 | $ | 335 | $ | (673 | ) | |||||||||
Financing Activities | ||||||||||||||||||||||
Power | Guarantor | Other | Consolidating | Consolidated | ||||||||||||||||||
Subsidiaries | Subsidiaries | Adjustments | ||||||||||||||||||||
Millions | ||||||||||||||||||||||
As of September 30, 2013 | ||||||||||||||||||||||
Current Assets | $ | 4,065 | $ | 8,609 | $ | 957 | $ | (11,941 | ) | $ | 1,690 | |||||||||||
Property, Plant and Equipment, net | 81 | 6,059 | 922 | — | 7,062 | |||||||||||||||||
Investment in Subsidiaries | 4,331 | 730 | — | (5,061 | ) | — | ||||||||||||||||
Noncurrent Assets | 197 | 1,842 | 56 | (126 | ) | 1,969 | ||||||||||||||||
Total Assets | $ | 8,674 | $ | 17,240 | $ | 1,935 | $ | (17,128 | ) | $ | 10,721 | |||||||||||
Current Liabilities | $ | 752 | $ | 10,778 | $ | 997 | $ | (11,941 | ) | $ | 586 | |||||||||||
Noncurrent Liabilities | 522 | 2,130 | 208 | (125 | ) | 2,735 | ||||||||||||||||
Long-Term Debt | 2,041 | — | — | — | 2,041 | |||||||||||||||||
Member’s Equity | 5,359 | 4,332 | 730 | (5,062 | ) | 5,359 | ||||||||||||||||
Total Liabilities and Member’s Equity | $ | 8,674 | $ | 17,240 | $ | 1,935 | $ | (17,128 | ) | $ | 10,721 | |||||||||||
As of December 31, 2012 | ||||||||||||||||||||||
Current Assets | $ | 3,922 | $ | 8,084 | $ | 940 | $ | (10,712 | ) | $ | 2,234 | |||||||||||
Property, Plant and Equipment, net | 80 | 5,988 | 950 | — | 7,018 | |||||||||||||||||
Investment in Subsidiaries | 4,317 | 733 | — | (5,050 | ) | — | ||||||||||||||||
Noncurrent Assets | 201 | 1,660 | 60 | (141 | ) | 1,780 | ||||||||||||||||
Total Assets | $ | 8,520 | $ | 16,465 | $ | 1,950 | $ | (15,903 | ) | $ | 11,032 | |||||||||||
Current Liabilities | $ | 482 | $ | 10,187 | $ | 1,010 | $ | (10,712 | ) | $ | 967 | |||||||||||
Noncurrent Liabilities | 559 | 1,960 | 207 | (140 | ) | 2,586 | ||||||||||||||||
Long-Term Debt | 2,040 | — | — | — | 2,040 | |||||||||||||||||
Member’s Equity | 5,439 | 4,318 | 733 | (5,051 | ) | 5,439 | ||||||||||||||||
Total Liabilities and Member’s Equity | $ | 8,520 | $ | 16,465 | $ | 1,950 | $ | (15,903 | ) | $ | 11,032 | |||||||||||
Organization_and_Basis_of_Pres2
Organization and Basis of Presentation Organization and Basis of Presentation (Details) | 9 Months Ended |
Sep. 30, 2013 | |
Number of Direct Wholly Owned Subsidiaries | 4 |
Power [Member] | |
Number of Direct Wholly Owned Subsidiaries | 3 |
Variable_Interest_Entities_VIE1
Variable Interest Entities (VIEs) (Detail) (PSE And G [Member], USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
PSE And G [Member] | ||
Variable Interest Entity, Number of Entities | 2 | |
Maximum exposure to loss | $16 | $16 |
Asset_Disposition_Asset_Dispos1
Asset Disposition Asset Disposition (Details) (USD $) | 1 Months Ended |
In Millions, unless otherwise specified | Jun. 30, 2013 |
Discontinued Operations and Disposal Groups [Abstract] | |
Proceeds from sale of its investments in a commercial office complex | $41 |
Gain on sale of its investments in a commercial office complex | $6 |
Rate_Filings_Details
Rate Filings (Details) (PSE And G [Member], USD $) | 2 Months Ended | 3 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Oct. 16, 2013 | Jul. 02, 2013 | Apr. 29, 2013 |
PSE And G [Member] | |||||
Regulatory Assets And Liabilities [Line Items] | |||||
Approved WNC Deficiency Revenues Recovery | $41 | ||||
Approved WNC Carryover Deficiency Revenues Recovery | 24 | ||||
Supplemental Request for WNC Carryover Deficiency Revenues Recovery | 26 | 26 | |||
USF and Lifeline Recovery | 274 | ||||
Request for Increased Transmission Revenues | 176 | ||||
Self Implementing Bill Credit per therm | 0.35 | ||||
Self Implementing BGSS rate credit to residential customers | $115 |
Financing_Receivables_Schedule
Financing Receivables (Schedule Of Credit Risk Profile Based On Payment Activity) (Detail) (PSE And G [Member], USD $) | 9 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
Concentration Risk [Line Items] | ||
Credit Risk Profile Based on Payment Activity | $198 | $189 |
Commercial/Industrial [Member] | ||
Concentration Risk [Line Items] | ||
Credit Risk Profile Based on Payment Activity | 183 | 174 |
Residential [Member] | ||
Concentration Risk [Line Items] | ||
Credit Risk Profile Based on Payment Activity | $15 | $15 |
Financing_Receivables_Gross_An
Financing Receivables (Gross And Net Lease Investment) (Detail) (Energy Holdings [Member], USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Energy Holdings [Member] | ||
Lease Receivables (net of Non-Recourse Debt) | $701 | $721 |
Estimated Residual Value of Leased Assets | 529 | 535 |
Total Investment in Rental Receivables | 1,230 | 1,256 |
Unearned and Deferred Income | -405 | -416 |
Gross Investments in Leases | 825 | 840 |
Deferred Tax Liabilities | -705 | -723 |
Net Investments in Leases | $120 | $117 |
Financing_Receivables_Schedule1
Financing Receivables (Schedule Of Lease Receivables, Net Of Nonrecourse Debt, Associated With Leveraged Lease Portfolio Based On Counterparty Credit Rating) (Detail) (Energy Holdings [Member], USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Guarantor Obligations [Line Items] | ||
Lease Receivables, Net of Non-Recourse Debt | $701 | $721 |
Counterparties' Credit Rating (S&P), AA [Member] | ||
Guarantor Obligations [Line Items] | ||
Lease Receivables, Net of Non-Recourse Debt | 20 | 21 |
Counterparties' Credit Rating (S&P), AA- [Member] | ||
Guarantor Obligations [Line Items] | ||
Lease Receivables, Net of Non-Recourse Debt | 56 | 73 |
Counterparties' Credit Rating (S&P), BBB+ - BBB- [Member] | ||
Guarantor Obligations [Line Items] | ||
Lease Receivables, Net of Non-Recourse Debt | 316 | 316 |
Counterparties' Credit Rating (S&P), B [Member] | ||
Guarantor Obligations [Line Items] | ||
Lease Receivables, Net of Non-Recourse Debt | 165 | 166 |
Counterparties' Credit Rating (S&P) Not Rated [Member] | ||
Guarantor Obligations [Line Items] | ||
Lease Receivables, Net of Non-Recourse Debt | $144 | $145 |
Financing_Receivables_Narrativ
Financing Receivables (Narrative) (Detail) (USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 |
Number of Coal Generation Facilities Leased to GenOn REMA | 3 |
Partial Rental Payment | $4 |
NRG commitment to invest | 350 |
Energy Holdings [Member] | |
Lease investment with non-investment grade counterparties, gross | 562 |
Lease investment with non-investment grade counterparties, net of deferred taxes | $23 |
Financing_Receivables_Schedule2
Financing Receivables (Schedule Of Assets Under Lease Receivables) (Detail) (USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 |
MW | |
Powerton Station Units 5 And 6 [Member] | |
Property, Plant and Equipment [Line Items] | |
Lease Receivable, Asset Location | IL |
Lease Receivable, Gross Investment | $134 |
Lease Receivable, % Owned | 64.00% |
Lease Receivable, Total, MW | 1,538 |
Lease Receivable, Asset, Fuel Type | Coal |
Lease Receivable, Counterparties' S&P Credit Ratings | Not Rated |
Lease Receivable, Counterparty | Edison Mission Energy |
Joliet Station Units 7 And 8 [Member] | |
Property, Plant and Equipment [Line Items] | |
Lease Receivable, Asset Location | IL |
Lease Receivable, Gross Investment | 84 |
Lease Receivable, % Owned | 64.00% |
Lease Receivable, Total, MW | 1,044 |
Lease Receivable, Asset, Fuel Type | Coal |
Lease Receivable, Counterparties' S&P Credit Ratings | Not Rated |
Lease Receivable, Counterparty | Edison Mission Energy |
Keystone Station Units 1 And 2 [Member] | |
Property, Plant and Equipment [Line Items] | |
Lease Receivable, Asset Location | PA |
Lease Receivable, Gross Investment | 117 |
Lease Receivable, % Owned | 17.00% |
Lease Receivable, Total, MW | 1,711 |
Lease Receivable, Asset, Fuel Type | Coal |
Lease Receivable, Counterparties' S&P Credit Ratings | B |
Lease Receivable, Counterparty | GenOn REMA, LLC |
Conemaugh Station Units 1 And 2 [Member] | |
Property, Plant and Equipment [Line Items] | |
Lease Receivable, Asset Location | PA |
Lease Receivable, Gross Investment | 117 |
Lease Receivable, % Owned | 17.00% |
Lease Receivable, Total, MW | 1,711 |
Lease Receivable, Asset, Fuel Type | Coal |
Lease Receivable, Counterparties' S&P Credit Ratings | B |
Lease Receivable, Counterparty | GenOn REMA, LLC |
Shawville Station Units 1, 2, 3 And 4 [Member] | |
Property, Plant and Equipment [Line Items] | |
Lease Receivable, Asset Location | PA |
Lease Receivable, Gross Investment | $110 |
Lease Receivable, % Owned | 100.00% |
Lease Receivable, Total, MW | 603 |
Lease Receivable, Asset, Fuel Type | Coal |
Lease Receivable, Counterparties' S&P Credit Ratings | B |
Lease Receivable, Counterparty | GenOn REMA, LLC |
AvailableForSale_Securities_Fa
Available-For-Sale Securities (Fair Values And Gross Unrealized Gains And Losses For The Securities Held In The NDT Fund) (Detail) (Power [Member], Nuclear Decommissioning Trust (NDT) Fund [Member], USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost | $1,401 | $1,366 |
Gross Unrealized Gains | 250 | 180 |
Gross Unrealized Losses | -16 | -6 |
Fair Value | 1,635 | 1,540 |
Equity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost | 615 | 648 |
Gross Unrealized Gains | 234 | 147 |
Gross Unrealized Losses | -6 | -6 |
Fair Value | 843 | 789 |
Government Obligations [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost | 411 | 274 |
Gross Unrealized Gains | 5 | 11 |
Gross Unrealized Losses | -6 | 0 |
Fair Value | 410 | 285 |
Other Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost | 313 | 320 |
Gross Unrealized Gains | 11 | 22 |
Gross Unrealized Losses | -4 | 0 |
Fair Value | 320 | 342 |
Total Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost | 724 | 594 |
Gross Unrealized Gains | 16 | 33 |
Gross Unrealized Losses | -10 | 0 |
Fair Value | 730 | 627 |
Other Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost | 62 | 124 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | $62 | $124 |
AvailableForSale_Securities_Sc
Available-For-Sale Securities (Schedule Of Accounts Receivable And Accounts Payable) (Detail) (Nuclear Decommissioning Trust (NDT) Fund [Member], Power [Member], USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Nuclear Decommissioning Trust (NDT) Fund [Member] | Power [Member] | ||
Accounts Receivable | $43 | $18 |
Accounts Payable | $47 | $53 |
AvailableForSale_Securities_Va
Available-For-Sale Securities (Value Of Securities That Have Been In An Unrealized Loss Position For Less Than And Greater Than 12 Months) (Detail) (Power [Member], Nuclear Decommissioning Trust (NDT) Fund [Member], USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | ||||
Unrealized Loss Position Less Than 12 Months [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Fair Value | $367 | $204 | ||
Gross Unrealized Losses | -16 | -6 | ||
Unrealized Loss Position Less Than 12 Months [Member] | Equity Securities [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Fair Value | 78 | [1] | 139 | [1] |
Gross Unrealized Losses | -6 | [1] | -6 | [1] |
Unrealized Loss Position Less Than 12 Months [Member] | Government Obligations [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Fair Value | 158 | [2] | 34 | [2] |
Gross Unrealized Losses | -6 | [2] | 0 | [2] |
Unrealized Loss Position Less Than 12 Months [Member] | Other Debt Securities [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Fair Value | 131 | [3] | 31 | [3] |
Gross Unrealized Losses | -4 | [3] | 0 | [3] |
Unrealized Loss Position Less Than 12 Months [Member] | Total Debt Securities [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Fair Value | 289 | 65 | ||
Gross Unrealized Losses | -10 | 0 | ||
Unrealized Loss Position Less Than 12 Months [Member] | Other Securities [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Fair Value | 0 | 0 | ||
Gross Unrealized Losses | 0 | 0 | ||
Unrealized Loss Position Greater Than 12 Months [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Fair Value | 0 | 7 | ||
Gross Unrealized Losses | 0 | |||
Unrealized Loss Position Greater Than 12 Months [Member] | Equity Securities [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Fair Value | 0 | [1] | 0 | [1] |
Gross Unrealized Losses | 0 | [1] | 0 | [1] |
Unrealized Loss Position Greater Than 12 Months [Member] | Government Obligations [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Fair Value | 0 | [2] | 1 | [2] |
Gross Unrealized Losses | 0 | [2] | 0 | [2] |
Unrealized Loss Position Greater Than 12 Months [Member] | Other Debt Securities [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Fair Value | 0 | [3] | 6 | [3] |
Gross Unrealized Losses | 0 | [3] | 0 | [3] |
Unrealized Loss Position Greater Than 12 Months [Member] | Total Debt Securities [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Fair Value | 0 | 7 | ||
Gross Unrealized Losses | 0 | 0 | ||
Unrealized Loss Position Greater Than 12 Months [Member] | Other Securities [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Fair Value | 0 | 0 | ||
Gross Unrealized Losses | 0 | 0 | ||
Unrealized Loss Position Greater Than 12 Months [Member] | Total Debt Securities [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Gross Unrealized Losses | $0 | |||
[1] | Equity Securities—Investments in marketable equity securities within the NDT Fund are primarily in common stocks within a broad range of industries and sectors. The unrealized losses are distributed over a broad range of securities with limited impairment durations. Power does not consider these securities to be other-than-temporarily impaired as of September 30, 2013. | |||
[2] | Debt Securities (Government)—Unrealized losses on Power’s NDT investments in United States Treasury obligations and Federal Agency asset-backed securities were caused by interest rate changes. Since these investments are guaranteed by the United States government or an agency of the United States government, it is not expected that these securities will settle for less than their amortized cost basis, since Power does not intend to sell nor will it be more-likely-than-not required to sell. Power does not consider these securities to be other-than-temporarily impaired as of September 30, 2013. | |||
[3] | Debt Securities (Corporate)—Power’s investments in corporate bonds are limited to 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 September 30, 2013. |
AvailableForSale_Securities_Pr
Available-For-Sale Securities (Proceeds From The Sales Of And The Net Realized Gains On Securities In The NDT Funds And Rabbi Trusts) (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Rabbi Trusts [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Proceeds from Sales | $13 | $6 | $77 | $221 |
Gross Realized Gains | 0 | 0 | 4 | 6 |
Gross Realized Losses | 0 | 0 | -3 | 0 |
Net Realized Gains (Losses) | 0 | 0 | 1 | 6 |
Power [Member] | Nuclear Decommissioning Trust (NDT) Fund [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Proceeds from Sales | 220 | 617 | 837 | 1,252 |
Gross Realized Gains | 35 | 94 | 95 | 136 |
Gross Realized Losses | -9 | -19 | -34 | -41 |
Net Realized Gains (Losses) | $26 | $75 | $61 | $95 |
AvailableForSale_Securities_Am
Available-For-Sale Securities (Amount Of Available-For-Sale Debt Securities By Maturity Periods) (Detail) (USD $) | Sep. 30, 2013 |
In Millions, unless otherwise specified | |
Schedule of Available-for-sale Securities [Line Items] | |
Available-for-sale debt securities, Less than one year | $57 |
Available-for-sale debt securities, 1-5 years | 167 |
Available-for-sale debt securities, 6-10 years | 186 |
Available-for-sale debt securities, 11-15 years | 44 |
Available-for-sale debt securities, 16-20 years | 19 |
Available-for-sale debt securities, Over 20 years | 257 |
Total Available-for-Sale Debt Securities | 730 |
Rabbi Trusts [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Available-for-sale debt securities, Less than one year | 0 |
Available-for-sale debt securities, 1-5 years | 59 |
Available-for-sale debt securities, 6-10 years | 29 |
Available-for-sale debt securities, 11-15 years | 7 |
Available-for-sale debt securities, 16-20 years | 4 |
Available-for-sale debt securities, Over 20 years | 53 |
Total Available-for-Sale Debt Securities | $152 |
AvailableForSale_Securities_Se
Available-For-Sale Securities (Securities Held In The Rabbi Trust) (Detail) (Rabbi Trusts [Member], USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Equity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost | $14 | $13 |
Gross Unrealized Gains | 7 | 5 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 21 | 18 |
Total Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost | 171 | 175 |
Gross Unrealized Gains | 7 | 10 |
Gross Unrealized Losses | -3 | 0 |
Fair Value | 175 | 185 |
Government Obligations [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost | 110 | 114 |
Gross Unrealized Gains | 0 | 3 |
Gross Unrealized Losses | -2 | 0 |
Fair Value | 108 | 117 |
Other Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost | 45 | 45 |
Gross Unrealized Gains | 0 | 2 |
Gross Unrealized Losses | -1 | 0 |
Fair Value | 44 | 47 |
Total Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost | 155 | 159 |
Gross Unrealized Gains | 0 | 5 |
Gross Unrealized Losses | -3 | |
Fair Value | 152 | 164 |
Other Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost | 2 | 3 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | $2 | $3 |
Recovered_Sheet1
Available-for-Sale Securities (Schedule of Accounts Receivable and Accounts Payable in the Rabbi Trust Funds) (Details) (Rabbi Trusts [Member], USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Rabbi Trusts [Member] | ||
Accounts Receivable | $3 | $4 |
Accounts Payable | $3 | $5 |
AvailableForSale_Securities_Fa1
Available-For-Sale Securities (Fair Value Of Rabbi Trust) (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Total Rabbi Trust Available-for-Sale Securities | $175 | $185 |
Power [Member] | ||
Total Rabbi Trust Available-for-Sale Securities | 38 | 36 |
PSE And G [Member] | ||
Total Rabbi Trust Available-for-Sale Securities | 41 | 61 |
Other Entity [Member] | ||
Total Rabbi Trust Available-for-Sale Securities | $96 | $88 |
AvailableForSale_Securities_Na
Available-For-Sale Securities (Narrative) (Detail) (USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 |
Station | |
Power [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Number of Nuclear Facilities | 5 |
Rabbi Trusts [Member] | Power [Member] | Debt Securities [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
After tax amount of net unrealized gains recognized in AOCI | 2 |
Nuclear Decommissioning Trust (NDT) Fund [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Available For Sale Securities Impairment Charge | 7 |
Nuclear Decommissioning Trust (NDT) Fund [Member] | Power [Member] | Debt Securities [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
After tax amount of net unrealized gains recognized in AOCI | 115 |
Pension_And_OPEB_Components_Of
Pension And OPEB (Components Of Net Periodic Benefit Cost) (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Pension Benefits [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service Cost | $29 | $26 | $87 | $76 |
Interest Cost | 54 | 56 | 161 | 167 |
Expected Return on Plan Assets | -87 | -76 | -261 | -229 |
Amortization of Net Transition Obligation | 0 | 0 | 0 | 0 |
Amortization of Prior Service Cost | -5 | -5 | -14 | -14 |
Amortization of Actuarial Loss | 47 | 41 | 141 | 125 |
Net Periodic Benefit Cost | 38 | 42 | 114 | 125 |
Defined Benefit Plan, Cost of Providing Special or Contractual Termination Benefits Recognized During Period | 0 | 1 | 0 | 1 |
Effect of Regulatory Asset | 0 | 0 | 0 | 0 |
Total Benefit Costs, Including Effect of Regulatory Asset | 38 | 43 | 114 | 126 |
OPEB [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service Cost | 6 | 5 | 16 | 13 |
Interest Cost | 15 | 17 | 47 | 49 |
Expected Return on Plan Assets | -6 | -4 | -16 | -13 |
Amortization of Net Transition Obligation | 0 | 1 | 0 | 2 |
Amortization of Prior Service Cost | -4 | -4 | -11 | -11 |
Amortization of Actuarial Loss | 11 | 7 | 32 | 23 |
Net Periodic Benefit Cost | 22 | 22 | 68 | 63 |
Defined Benefit Plan, Cost of Providing Special or Contractual Termination Benefits Recognized During Period | 0 | 0 | 0 | 0 |
Effect of Regulatory Asset | 0 | 4 | 0 | 14 |
Total Benefit Costs, Including Effect of Regulatory Asset | $22 | $26 | $68 | $77 |
Pension_And_OPEB_Schedule_Of_P
Pension And OPEB (Schedule Of Pension And OPEB Costs) (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Pension Benefits [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total Benefit Costs | $38 | $43 | $114 | $126 |
Pension Benefits [Member] | Power [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total Benefit Costs | 11 | 14 | 33 | 39 |
Pension Benefits [Member] | PSE And G [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total Benefit Costs | 23 | 24 | 68 | 73 |
Pension Benefits [Member] | Other Entity [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total Benefit Costs | 4 | 5 | 13 | 14 |
OPEB [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total Benefit Costs | 22 | 26 | 68 | 77 |
OPEB [Member] | Power [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total Benefit Costs | 6 | 5 | 17 | 14 |
OPEB [Member] | PSE And G [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total Benefit Costs | 16 | 21 | 49 | 61 |
OPEB [Member] | Other Entity [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total Benefit Costs | $0 | $0 | $2 | $2 |
Pension_And_OPEB_Narrative_Det
Pension And OPEB (Narrative) (Detail) (USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 |
Pension Benefits [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Employer contributions | $145 |
Postretirement Healthcare Plans [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Employer contributions | $14 |
Recovered_Sheet2
Commitments And Contingent Liabilities (Guaranteed Obligations) (Detail) (Power [Member], USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Power [Member] | ||
Face Value of Outstanding Guarantees | $1,551 | $1,508 |
Exposure under Current Guarantees | 201 | 226 |
Letters of Credit Margin Posted | 121 | 124 |
Letters of Credit Margin Received | 29 | 69 |
Counterparty Cash Margin Deposited | 12 | 15 |
Counterparty Cash Margin Received | 0 | -4 |
Net Broker Balance Deposited (Received) | 8 | 26 |
Additional Collateral that could be Required | 588 | 654 |
Liquidity Available under PSEG's and Power's Credit Facilities to Post Collateral | 3,537 | 3,531 |
Other Letters of Credit | $42 | $45 |
Recovered_Sheet3
Commitments And Contingent Liabilities (Environmental Matters) (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Apr. 30, 2009 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2011 | Jun. 30, 2008 | Sep. 30, 2013 | Dec. 31, 2003 | Sep. 30, 2013 | Feb. 28, 2009 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2006 | Dec. 31, 2006 | Sep. 30, 2013 |
entity | MW | PSE And G [Member] | PSE And G [Member] | Power [Member] | PSEG [Member] | Passaic River Site Contingency [Member] | Passaic River Site Contingency [Member] | Passaic River Site Contingency [Member] | Passaic River Site Contingency [Member] | Passaic River Site Contingency [Member] | PSE&G's Former MGP Sites [Member] | PSE&G's Former MGP Sites [Member] | PSD NSR Regulations Site Contingency [Member] | MGP Remediation Site Contingency [Member] | Remedial Investigation And Feasibility Study [Member] | Passaic River mile 10.9 contaminant removal [Member] | PSE&G's Former MGP Sites [Member] | PSE&G's Former MGP Sites [Member] | Transferred To Power From Pse G [Member] | ||
Station | Turbines | Potentially_Responsible_Party | PSE And G [Member] | Power [Member] | site | PSE And G [Member] | Power [Member] | PSE And G [Member] | PSE And G [Member] | Power [Member] | Passaic River Site Contingency [Member] | ||||||||||
site | Plant | Defendant | Potentially_Responsible_Party | Plant | |||||||||||||||||
mi | Person | ||||||||||||||||||||
Site Contingency [Line Items] | |||||||||||||||||||||
Number of miles related to the Passaic River constituting a facility as determined by the US Environmental Protection Agency | 8 | ||||||||||||||||||||
Number of miles on Passaic River tidal reach required to be studied as determined by the US Environmental Protection Agency | 17 | ||||||||||||||||||||
Number of operating electric generating station (Essex Site) | 1 | ||||||||||||||||||||
Number of former generating electric station | 1 | ||||||||||||||||||||
Number of former Manufactured Gas Plant (MGP) sites | 4 | ||||||||||||||||||||
Estimated, total cost of the study | $117,000,000 | $30,000,000 | |||||||||||||||||||
Number of potentially responsible parties ("PRPs") in connection with environmental liabilities for operations conducted near Passaic River | 73 | ||||||||||||||||||||
Number of current potentially responsible parties ("PRPs") in connection with environmental liabilities for operations conducted near Passaic River | 70 | ||||||||||||||||||||
Percentage of cost attributable to potentially responsible party | 3.00% | 1.00% | 5.00% | ||||||||||||||||||
Estimated cleanup costs-low estimate | 1,300,000,000 | ||||||||||||||||||||
Estimated cleanup costs-high estimate | 3,700,000,000 | ||||||||||||||||||||
Estimated cleanup costs agreed to by two potentially responsible parties | 80,000,000 | ||||||||||||||||||||
Aggregate number of defendants including registrant entities Power and PSE&G included in NJDEP complaint filed February 2009 | 320 | ||||||||||||||||||||
Number of additional PRPs directed by the NJDEP to arrange for natural resource damage assessment and interim compensatory restoration along the lower Passaic River | 56 | ||||||||||||||||||||
Estimated cost of interim natural resource injury restoration | 950,000,000 | ||||||||||||||||||||
Number of additional legal entities contacted by EPA in conjunction with Newark Bay study area contamination | 11 | ||||||||||||||||||||
Number of operating electric generating stations located on Hackensack River | 2 | ||||||||||||||||||||
Number of former MGP contamination sites located on Hackensack river in conjunction with Newark Bay study area contamination | 1 | ||||||||||||||||||||
Number of MGP sites identified by registrant and the NJDEP requiring some level of remedial action | 38 | ||||||||||||||||||||
Estimated expenditures, low end of range | 476,000,000 | ||||||||||||||||||||
Estimated expenditures, high end of range | 552,000,000 | ||||||||||||||||||||
Accrued environmental costs | 431,000,000 | 537,000,000 | 380,000,000 | 486,000,000 | 476,000,000 | ||||||||||||||||
Remediation liability recorded as other current liabilities | 107,000,000 | ||||||||||||||||||||
Remediation liability recorded as environmental costs in noncurrent liabilities | 369,000,000 | ||||||||||||||||||||
Regulatory assets | 476,000,000 | ||||||||||||||||||||
Penalty per day from date of violation-minimum | 25,000 | ||||||||||||||||||||
Penalty per day from date of violation-maximum | 37,500 | ||||||||||||||||||||
Ownership percentage of Keystone Coal fired plant in Pennsylvania | 23.00% | ||||||||||||||||||||
Parent companies share of investment in Clean Air Act requirements | 147,000,000 | ||||||||||||||||||||
Number of combustion turbines required to be retired to meet NOx emission reduction requirements | 86 | ||||||||||||||||||||
Number of MW required to be retired to meet NOx emission reduction requirements | 1,750 | ||||||||||||||||||||
Number of steam electric generation units requiring significant capital investment for additional controls or retirement as determined by NJDEP | 4 | ||||||||||||||||||||
Number of MW requiring significant capital investment for additional controls or retirement as determined by NJDEP | 400 | ||||||||||||||||||||
New Salem facility cooling towers estimated cost total | $1,000,000,000 | $1,000,000,000 |
Commitments_And_Contingent_Lia2
Commitments And Contingent Liabilities (Capital Expenditures) (Detail) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Long-term Purchase Commitment [Line Items] | ||
Capital Expenditures | $6,400 | |
Total expenditures to date | 2,102 | 1,969 |
Energy Holdings-Solar [Member] | ||
Long-term Purchase Commitment [Line Items] | ||
Guarantee payment of obligations | 10 | |
Power [Member] | ||
Long-term Purchase Commitment [Line Items] | ||
Total expenditures to date | 419 | 493 |
Payments for Nuclear Fuel | 176 | |
Power [Member] | General Plant Assets [Member] | ||
Long-term Purchase Commitment [Line Items] | ||
Total expenditures to date | 243 | |
PSE And G [Member] | ||
Long-term Purchase Commitment [Line Items] | ||
Total expenditures to date | 1,628 | 1,369 |
Payments for Removal Costs | 66 | |
Total Capital Expenditures | 1,648 | |
Solar Loan Investment [Member] | PSE And G [Member] | ||
Long-term Purchase Commitment [Line Items] | ||
Total expenditures to date | 20 | |
Through 2015 [Member] | PSE And G [Member] | ||
Long-term Purchase Commitment [Line Items] | ||
Increase in Projected Capital Expenditures | 215 | |
Fiscal Year 2013 [Member] | ||
Long-term Purchase Commitment [Line Items] | ||
Capital Expenditures | 2,540 | |
Fiscal Year 2013 [Member] | Power [Member] | ||
Long-term Purchase Commitment [Line Items] | ||
Capital Expenditures | 400 | |
Fiscal Year 2013 [Member] | PSE And G [Member] | ||
Long-term Purchase Commitment [Line Items] | ||
Capital Expenditures | 2,045 | |
Fiscal Year 2013 [Member] | Other Entity [Member] | ||
Long-term Purchase Commitment [Line Items] | ||
Capital Expenditures | 95 | |
Fiscal Year 2014 [Member] | ||
Long-term Purchase Commitment [Line Items] | ||
Capital Expenditures | 2,170 | |
Fiscal Year 2014 [Member] | Power [Member] | ||
Long-term Purchase Commitment [Line Items] | ||
Capital Expenditures | 365 | |
Fiscal Year 2014 [Member] | PSE And G [Member] | ||
Long-term Purchase Commitment [Line Items] | ||
Capital Expenditures | 1,765 | |
Fiscal Year 2014 [Member] | Other Entity [Member] | ||
Long-term Purchase Commitment [Line Items] | ||
Capital Expenditures | 40 | |
Fiscal Year 2015 [Member] | ||
Long-term Purchase Commitment [Line Items] | ||
Capital Expenditures | 1,640 | |
Fiscal Year 2015 [Member] | Power [Member] | ||
Long-term Purchase Commitment [Line Items] | ||
Capital Expenditures | 305 | |
Fiscal Year 2015 [Member] | PSE And G [Member] | ||
Long-term Purchase Commitment [Line Items] | ||
Capital Expenditures | 1,305 | |
Fiscal Year 2015 [Member] | Other Entity [Member] | ||
Long-term Purchase Commitment [Line Items] | ||
Capital Expenditures | $30 |
Commitments_And_Contingent_Lia3
Commitments And Contingent Liabilities (Basic Generation Service (BGS) And Basic Gas Supply Service (BGSS)) (Detail) | 9 Months Ended | |
Sep. 30, 2013 | ||
MW | ||
Long-term Purchase Commitment [Line Items] | ||
Number of cubic feet in gas hedging permitted to be recovered by BPU | 115,000,000,000 | |
Percentage of residential gas supply permitted to be recovered in gas hedging by BPU | 80.00% | |
Percentage of annual residential gas supply requirements to be hedged | 50.00% | |
Number of cubic feet to be hedged | 70,000,000,000 | |
PSE And G [Member] | Auction Year 2010 [Member] | ||
Long-term Purchase Commitment [Line Items] | ||
36-Month Terms Ending | 31-May-13 | |
Load (MW) | 2,800 | |
$ per kWh | 0.09577 | |
PSE And G [Member] | Auction Year 2011 [Member] | ||
Long-term Purchase Commitment [Line Items] | ||
36-Month Terms Ending | 31-May-14 | |
Load (MW) | 2,800 | |
$ per kWh | 0.0943 | |
PSE And G [Member] | Auction Year 2012 [Member] | ||
Long-term Purchase Commitment [Line Items] | ||
36-Month Terms Ending | 31-May-15 | |
Load (MW) | 2,900 | |
$ per kWh | 0.08388 | |
PSE And G [Member] | Auction Year 2013 [Member] | ||
Long-term Purchase Commitment [Line Items] | ||
36-Month Terms Ending | 31-May-16 | [1] |
Load (MW) | 2,800 | |
$ per kWh | 0.09218 | |
[1] | Prices set in the 2013 BGS auction became effective on June 1, 2013 when the 2010 BGS auction agreements expired. |
Commitments_And_Contingent_Lia4
Commitments And Contingent Liabilities (Minimum Fuel Purchase Requirements) (Detail) (Power [Member], USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 |
Long-term Purchase Commitment [Line Items] | |
Coverage percentage of nuclear fuel commitments of uranium, enrichment, and fabrication requirements | 100.00% |
Commitments Through 2017 [Member] | Nuclear Fuel Uranium [Member] | |
Long-term Purchase Commitment [Line Items] | |
Total minimum purchase requirements | $470 |
Commitments Through 2017 [Member] | Nuclear Fuel Enrichment [Member] | |
Long-term Purchase Commitment [Line Items] | |
Total minimum purchase requirements | 386 |
Commitments Through 2017 [Member] | Nuclear Fuel Fabrication [Member] | |
Long-term Purchase Commitment [Line Items] | |
Total minimum purchase requirements | 146 |
Commitments Through 2017 [Member] | Natural Gas [Member] | |
Long-term Purchase Commitment [Line Items] | |
Total minimum purchase requirements | 880 |
Commitments Through 2017 [Member] | Coal [Member] | |
Long-term Purchase Commitment [Line Items] | |
Total minimum purchase requirements | $446 |
Commitments_And_Contingent_Lia5
Commitments And Contingent Liabilities (Regulatory Proceedings) (Detail) (USD $) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||
In Millions, unless otherwise specified | 31-May-12 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2011 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 |
MW | MW | MW | New Jersey Clean Energy Program Unfavorable Regulatory Action [Member] | PSE And G [Member] | PSE And G [Member] | PSE And G [Member] | PSE And G [Member] | PSE And G [Member] | PSE And G [Member] | Power [Member] | Power [Member] | Power [Member] | Power [Member] | Power [Member] | Power [Member] | Power [Member] | SOCA Contract commencing in 2015/2016 Delivery Year [Member] | ||||
MW | New Jersey Clean Energy Program Unfavorable Regulatory Action [Member] | Superstorm Sandy [Member] | Superstorm Sandy [Member] | Superstorm Sandy [Member] | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||
Aggregate funding for New Jersey Clean Energy Program | $345 | $200 | |||||||||||||||||||
Discounted liability recorded-current | 185 | ||||||||||||||||||||
Number of Generators selected under LCAPP | 3 | 1 | |||||||||||||||||||
Aggregate notional amount of MW capacity | 1,300 | 1,300 | 2,000 | ||||||||||||||||||
SOCA payments term | 15 years | ||||||||||||||||||||
Percentage of Installed Capacity Under LCAPP Subsidiary Will Be Serving | 52.00% | ||||||||||||||||||||
Number of Installed Capacity Under LCAPP Subsidiary Will Be Serving | 676 | ||||||||||||||||||||
Operation and Maintenance | 713 | 619 | 2,069 | 1,876 | 408 | 366 | 1,204 | 1,092 | 304 | 255 | 866 | 780 | 17 | 67 | 85 | ||||||
Proceeds from Insurance Recoveries | 25 | 19 | |||||||||||||||||||
Total Costs to Restore to pre-Storm conditions | $364 |
Commitments_And_Contingent_Lia6
Commitments And Contingent Liabilities (Leveraged Lease Investments) (Detail) (USD $) | 3 Months Ended | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
PSEG [Member] | |||
Site Contingency [Line Items] | |||
Unrecognized tax benefit potential increase on settlement with IRS | ($175) | ||
Financial statement tax reserves | 246 | ||
Unrecognized tax benefit decrease on settlement with IRS | 71 | ||
Amount deposited with IRS to defray potential interest costs | 320 | ||
Tax And Interest Deficiency | 4 | ||
PSEG To IRS [Member] | |||
Site Contingency [Line Items] | |||
Estimate of tax interest potentially payable in current year from 2004 through 2006 tax years high estimate | 620 | ||
IRS To PSEG [Member] | |||
Site Contingency [Line Items] | |||
Estimate of tax interest potentially payable in current year from 2007 through two 2010 years high estimate | 676 | ||
IRS [Member] | |||
Site Contingency [Line Items] | |||
Tax deduction for the accrued deficiency interest | $100 |
Changes_In_Capitalization_Deta
Changes In Capitalization (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 |
In Millions, unless otherwise specified | Power [Member] | Power [Member] | PSE And G [Member] | PSE And G [Member] | PSE And G [Member] | PSE And G [Member] | PSE And G [Member] | PSE And G [Member] | PSE And G [Member] | PSE And G [Member] | PSE And G [Member] | PSE And G [Member] | ||
Senior Notes Two Point Five Zero Percentage Due Two Thousand Thirteen [Member] | Two Point Three Percent Secured MTN [Member] | Three Point Seven Five Percent Secured Medium Term Notes [Member] | Five Point Three Seven Five Percent Secured Medium Term Notes [Member] | Two Point Three Seven Five Percent Secured Medium Term Notes [Member] | Five Point Zero Secured MTN [Member] | Three Point Eight Secured MTN [Member] | Transition Fundings Securitization Debt [Member] | Transition Fundings Ii Securitization Debt [Member] | ||||||
Long-term debt | $8,486 | $7,939 | ||||||||||||
Stated interest rate of debt instrument | 2.50% | 2.30% | 3.75% | 5.38% | 2.38% | 5.00% | 3.80% | |||||||
Contributed Capital | 100 | 0 | ||||||||||||
Cash dividend paid | 690 | |||||||||||||
Repayments of Long-term Debt | 300 | 300 | 150 | |||||||||||
Transition Funding's securitization debt | 156 | |||||||||||||
Issuance of senior debt | 350 | 250 | 500 | 400 | ||||||||||
Payments For Transition Fundings I I Securitization Debt | $6 |
Financial_Risk_Management_Acti2
Financial Risk Management Activities (Schedule Of Derivative Transactions Designated And Effective As Cash Flow Hedges) (Detail) (Power [Member], USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Power [Member] | ||
Fair Value of Cash Flow Hedges | $1 | $3 |
Impact on Accumulated Other Comprehensive Income (Loss) (after tax) | $3 | $9 |
Financial_Risk_Management_Acti3
Financial Risk Management Activities (Narrative) (Detail) (USD $) | 9 Months Ended | 12 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | |||||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Senior Notes 5.5% Due December 2015 [Member] | Senior Notes 5.32% Due September 2016 [Member] | Senior Notes 2.75% Due September 2016 [Member] | Power [Member] | Power [Member] | Power [Member] | Power [Member] | PSEG [Member] | PSEG [Member] | PSEG [Member] | PSEG [Member] | PSEG [Member] | |||
Counterparty | Senior Notes 5.5% Due December 2015 [Member] | Senior Notes 5.32% Due September 2016 [Member] | Senior Notes 2.75% Due September 2016 [Member] | |||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||||
Amount of after-tax gains on derivatives designated and effective as cash flow hedges expected to be reclassified to earnings during the 12 months following period end | $3 | |||||||||||||
Percent of gross margin, less than | 1.00% | |||||||||||||
Number of interest rate swaps outstanding, total | 7 | 7 | ||||||||||||
Aggregate amount of series of interest rate swaps converting to variable-rate debt | 300 | 850 | 850 | |||||||||||
Senior Notes converted into variable rate debt | 300 | 303 | 250 | |||||||||||
Stated interest rate of debt instrument | 5.50% | 5.32% | 2.75% | |||||||||||
Fair value of interest rate swaps designated as underlying hedges | 42 | 42 | 57 | |||||||||||
Aggregate amount of accumulated other comprehensive income (loss) attributed to interest rate derivatives designated as cash flow hedges | -1 | -2 | ||||||||||||
Aggregate fair value of derivative contracts in a liability position that contains triggers for additional collateral | 75 | 98 | 42 | 42 | 61 | |||||||||
Additional collateral aggregate fair value | 588 | 654 | 33 | 33 | 37 | |||||||||
Amount of reduction in interest expense attributed to interest rate swaps designated as fair value hedges | $4 | $6 | $14 | $17 | ||||||||||
Credit exposure, percentage | 95.00% | |||||||||||||
Number of active counterparties on credit risk derivatives | 142 |
Financial_Risk_Management_Acti4
Financial Risk Management Activities (Schedule Of Derivative Instruments Fair Value In Balance Sheets) (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative Contracts, Current Assets | $107 | [1] | $138 | [1] |
Derivative Contracts, Noncurrent Assets | 184 | [1] | 153 | [1] |
Total Mark-to-Market Derivative Assets | 291 | [1] | 291 | [1] |
Derivative Contracts, Current Liabilities | -36 | [1] | -46 | [1] |
Derivative Contracts, Noncurrent Liabilities | -163 | [1] | -122 | [1] |
Total Mark-to-Market Derivative (Liabilities) | -199 | [1] | -168 | [1] |
Net Mark-to-Market Derivative Assets (Liabilities) | 92 | [1] | 123 | [1] |
Net cash collateral received in connection with net derivative contracts | -2 | 2 | ||
Power [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative Contracts, Current Assets | 72 | [1] | 118 | [1] |
Derivative Contracts, Noncurrent Assets | 89 | [1] | 49 | [1] |
Total Mark-to-Market Derivative Assets | 161 | [1] | 167 | [1] |
Derivative Contracts, Current Liabilities | -36 | [1] | -46 | [1] |
Derivative Contracts, Noncurrent Liabilities | -23 | [1] | -15 | [1] |
Total Mark-to-Market Derivative (Liabilities) | -59 | [1] | -61 | [1] |
Net Mark-to-Market Derivative Assets (Liabilities) | 102 | [1] | 106 | [1] |
Power [Member] | Netting [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative Contracts, Current Assets | -157 | [2] | -217 | [2] |
Derivative Contracts, Noncurrent Assets | -75 | [2] | -26 | [2] |
Total Mark-to-Market Derivative Assets | -232 | [2] | -243 | [2] |
Derivative Contracts, Current Liabilities | 157 | [2] | 219 | [2] |
Derivative Contracts, Noncurrent Liabilities | 73 | [2] | 26 | [2] |
Total Mark-to-Market Derivative (Liabilities) | 230 | [2] | 245 | [2] |
Net Mark-to-Market Derivative Assets (Liabilities) | -2 | [2] | 2 | [2] |
Power [Member] | Energy-Related Contracts [Member] | Cash Flow Hedging [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative Contracts, Current Assets | 1 | 3 | ||
Derivative Contracts, Noncurrent Assets | 0 | 0 | ||
Total Mark-to-Market Derivative Assets | 1 | 3 | ||
Derivative Contracts, Current Liabilities | 0 | 0 | ||
Derivative Contracts, Noncurrent Liabilities | 0 | 0 | ||
Total Mark-to-Market Derivative (Liabilities) | 0 | 0 | ||
Net Mark-to-Market Derivative Assets (Liabilities) | 1 | 3 | ||
PSE And G [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative Contracts, Current Assets | 19 | 5 | ||
Derivative Contracts, Noncurrent Assets | 69 | 62 | ||
Derivative Contracts, Noncurrent Liabilities | -140 | -107 | ||
PSEG [Member] | Interest Rate Swap [Member] | Fair Value Hedging [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative Contracts, Current Assets | 16 | [1] | 15 | [1] |
Derivative Contracts, Noncurrent Assets | 26 | [1] | 42 | [1] |
Total Mark-to-Market Derivative Assets | 42 | [1] | 57 | [1] |
Derivative Contracts, Current Liabilities | 0 | [1] | 0 | [1] |
Derivative Contracts, Noncurrent Liabilities | 0 | [1] | 0 | [1] |
Total Mark-to-Market Derivative (Liabilities) | 0 | [1] | 0 | [1] |
Net Mark-to-Market Derivative Assets (Liabilities) | 42 | [1] | 57 | [1] |
Not Designated as Hedging Instrument [Member] | Power [Member] | Energy-Related Contracts [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative Contracts, Current Assets | 228 | 332 | ||
Derivative Contracts, Noncurrent Assets | 164 | 75 | ||
Total Mark-to-Market Derivative Assets | 392 | 407 | ||
Derivative Contracts, Current Liabilities | -193 | -265 | ||
Derivative Contracts, Noncurrent Liabilities | -96 | -41 | ||
Total Mark-to-Market Derivative (Liabilities) | -289 | -306 | ||
Net Mark-to-Market Derivative Assets (Liabilities) | 103 | 101 | ||
Not Designated as Hedging Instrument [Member] | PSE And G [Member] | Energy-Related Contracts [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative Contracts, Current Assets | 19 | [1] | 5 | [1] |
Derivative Contracts, Noncurrent Assets | 69 | [1] | 62 | [1] |
Total Mark-to-Market Derivative Assets | 88 | [1] | 67 | [1] |
Derivative Contracts, Current Liabilities | 0 | [1] | 0 | [1] |
Derivative Contracts, Noncurrent Liabilities | -140 | [1] | -107 | [1] |
Total Mark-to-Market Derivative (Liabilities) | -140 | [1] | -107 | [1] |
Net Mark-to-Market Derivative Assets (Liabilities) | -52 | [1] | -40 | [1] |
Current Assets [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Net cash collateral received in connection with net derivative contracts | -1 | -3 | ||
Non Current Assets [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Net cash collateral received in connection with net derivative contracts | -2 | |||
Current Liabilities [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Net cash collateral received in connection with net derivative contracts | $1 | $5 | ||
[1] | Substantially all of Power's and PSEG's derivative instruments are contracts subject to master netting agreements. Contracts not subject to master netting or similar agreements are immaterial and did not have any collateral posted or received as of September 30, 2013 and December 31, 2012. PSE&G does not have any derivative contracts subject to master netting or similar agreements. | |||
[2] | Represents the netting of fair value balances with the same counterparty (where the right of offset exists) and the application of collateral. All cash collateral received or posted that has been allocated to derivative positions, where the right of offset exists, has been offset in the statement of financial position. As of September 30, 2013 and December 31, 2012, net cash collateral (received) paid of $(2) million and $2 million, respectively, were netted against the corresponding net derivative contract positions. Of the $(2) million as of September 30, 2013, $(1) million of cash collateral was netted against current assets, $(2) million was netted against noncurrent assets and $1 million was netted against current liabilities. Of the $2 million as of December 31, 2012, cash collateral of $(3) million and $5 million were netted against current assets and current liabilities, respectively. |
Financial_Risk_Management_Acti5
Financial Risk Management Activities (Schedule Of Derivative Instruments Designated As Cash Flow Hedges) (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
PSEG [Member] | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Amount of Pre-Tax Gain (Loss) attributed to Cash Flow Hedges Recognized in AOCI on Derivatives (Effective Portion) | $1 | [1] | ($3) | [1] | $1 | [1] | $23 | [1] |
Amount of Pre-Tax Gain (Loss) Recognized in Income on Derivatives (Ineffective Portion) | -1 | [1] | -1 | [1] | -1 | [1] | -1 | [1] |
Amount of Pre-Tax Gain (Loss) attributed to Cash Flow Hedges Reclassified from AOCI into Energy Costs (Effective Portion) | 3 | [1] | 15 | [1] | 10 | [1] | 57 | [1] |
Power [Member] | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Amount of Pre-Tax Gain (Loss) attributed to Cash Flow Hedges Recognized in AOCI on Derivatives (Effective Portion) | 1 | -3 | 1 | 23 | ||||
Amount of Pre-Tax Gain (Loss) Recognized in Income on Derivatives (Ineffective Portion) | -1 | -1 | -1 | -1 | ||||
Amount of Pre-Tax Gain (Loss) attributed to Cash Flow Hedges Reclassified from AOCI into Energy Costs (Effective Portion) | 3 | 15 | 11 | 58 | ||||
Operating Revenues [Member] | PSEG [Member] | Energy-Related Contracts [Member] | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Amount of Pre-Tax Gain (Loss) attributed to Cash Flow Hedges Recognized in AOCI on Derivatives (Effective Portion) | 1 | [1] | -3 | [1] | 1 | [1] | 27 | [1] |
Amount of Pre-Tax Gain (Loss) Recognized in Income on Derivatives (Ineffective Portion) | -1 | [1] | -1 | [1] | -1 | [1] | -1 | [1] |
Amount of Pre-Tax Gain (Loss) attributed to Cash Flow Hedges Reclassified from AOCI into Operating Revenues (Effective Portion) | 3 | [1] | 15 | [1] | 11 | [1] | 67 | [1] |
Operating Revenues [Member] | Power [Member] | Energy-Related Contracts [Member] | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Amount of Pre-Tax Gain (Loss) attributed to Cash Flow Hedges Recognized in AOCI on Derivatives (Effective Portion) | 1 | -3 | 1 | 27 | ||||
Amount of Pre-Tax Gain (Loss) Recognized in Income on Derivatives (Ineffective Portion) | -1 | -1 | -1 | -1 | ||||
Amount of Pre-Tax Gain (Loss) attributed to Cash Flow Hedges Reclassified from AOCI into Operating Revenues (Effective Portion) | 3 | 15 | 11 | 67 | ||||
Energy Costs [Member] | PSEG [Member] | Energy-Related Contracts [Member] | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Amount of Pre-Tax Gain (Loss) attributed to Cash Flow Hedges Recognized in AOCI on Derivatives (Effective Portion) | 0 | [1] | -4 | [1] | ||||
Amount of Pre-Tax Gain (Loss) Recognized in Income on Derivatives (Ineffective Portion) | 0 | [1] | 0 | [1] | ||||
Amount of Pre-Tax Gain (Loss) attributed to Cash Flow Hedges Reclassified from AOCI into Energy Costs (Effective Portion) | 0 | [1] | -9 | [1] | ||||
Energy Costs [Member] | Power [Member] | Energy-Related Contracts [Member] | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Amount of Pre-Tax Gain (Loss) attributed to Cash Flow Hedges Recognized in AOCI on Derivatives (Effective Portion) | 0 | -4 | ||||||
Amount of Pre-Tax Gain (Loss) Recognized in Income on Derivatives (Ineffective Portion) | 0 | 0 | ||||||
Amount of Pre-Tax Gain (Loss) attributed to Cash Flow Hedges Reclassified from AOCI into Energy Costs (Effective Portion) | 0 | -9 | ||||||
Interest Expense [Member] | PSEG [Member] | Interest Rate Swap [Member] | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Amount of Pre-Tax Gain (Loss) attributed to Cash Flow Hedges Recognized in AOCI on Derivatives (Effective Portion) | 0 | [1] | 0 | [1] | ||||
Amount of Pre-Tax Gain (Loss) Recognized in Income on Derivatives (Ineffective Portion) | 0 | [1] | 0 | [1] | ||||
Cash Flow Hedge Gain (Loss) Reclassified to Interest Expense, Net | ($1) | [1] | ($1) | [1] | ||||
[1] |
Financial_Risk_Management_Acti6
Financial Risk Management Activities (Schedule Of Reconciliation For Derivative Activity Included In Accumulated Other Comprehensive Loss) (Detail) (USD $) | 3 Months Ended | 6 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 | Jun. 30, 2013 |
Pre-Tax Balance at Beginning of Period | $5 | $12 |
Gain (Loss) in AOCI | 1 | |
Less: Gain Reclassified into Income | -3 | -7 |
Pre-Tax Balance at End of Period | 3 | 5 |
After-Tax Balance at Beginning of Period | 3 | 7 |
Gain (Loss) in AOCI, After-Tax | 1 | |
Less: Gain Reclassified into Income, After-Tax | -2 | -4 |
After-Tax Balance at End of Period | $2 | $3 |
Financial_Risk_Management_Acti7
Financial Risk Management Activities (Schedule Of Derivative Instruments Not Designated As Hedging Instruments And Impact On Results Of Operations) (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Pre-Tax Gain (Loss) Recognized in Income on Derivatives | $24 | ($84) | $31 | $128 |
Operating Revenues [Member] | Energy-Related Contracts [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Pre-Tax Gain (Loss) Recognized in Income on Derivatives | 14 | -90 | -32 | 145 |
Energy Costs [Member] | Energy-Related Contracts [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Pre-Tax Gain (Loss) Recognized in Income on Derivatives | $10 | $6 | $63 | ($17) |
Financial_Risk_Management_Acti8
Financial Risk Management Activities (Schedule Of Gross Volume, On Absolute Basis For Derivative Contracts) (Detail) | Sep. 30, 2013 | Dec. 31, 2012 |
Natural Gas Dth [Member] | ||
Derivative [Line Items] | ||
Gross volume of derivative on absolute value basis | 537,000,000 | 596,000,000 |
Electricity MWh [Member] | ||
Derivative [Line Items] | ||
Gross volume of derivative on absolute value basis | 247,000,000 | 208,000,000 |
Capacity MW Days [Member] | ||
Derivative [Line Items] | ||
Gross volume of derivative on absolute value basis | 4,000,000 | 4,000,000 |
FTRs MWh [Member] | ||
Derivative [Line Items] | ||
Gross volume of derivative on absolute value basis | 22,000,000 | 19,000,000 |
Interest Rate Swaps [Member] | ||
Derivative [Line Items] | ||
Gross volume of derivative on absolute value basis | 850,000,000 | 850,000,000 |
Coal Tons [Member] | ||
Derivative [Line Items] | ||
Gross volume of derivative on absolute value basis | 1,000,000 | |
PSEG [Member] | Natural Gas Dth [Member] | ||
Derivative [Line Items] | ||
Gross volume of derivative on absolute value basis | 0 | 0 |
PSEG [Member] | Electricity MWh [Member] | ||
Derivative [Line Items] | ||
Gross volume of derivative on absolute value basis | 0 | |
PSEG [Member] | Capacity MW Days [Member] | ||
Derivative [Line Items] | ||
Gross volume of derivative on absolute value basis | 0 | |
PSEG [Member] | FTRs MWh [Member] | ||
Derivative [Line Items] | ||
Gross volume of derivative on absolute value basis | 0 | 0 |
PSEG [Member] | Interest Rate Swaps [Member] | ||
Derivative [Line Items] | ||
Gross volume of derivative on absolute value basis | 850,000,000 | 850,000,000 |
PSEG [Member] | Coal Tons [Member] | ||
Derivative [Line Items] | ||
Gross volume of derivative on absolute value basis | 0 | |
Power [Member] | Natural Gas Dth [Member] | ||
Derivative [Line Items] | ||
Gross volume of derivative on absolute value basis | 377,000,000 | 404,000,000 |
Power [Member] | Electricity MWh [Member] | ||
Derivative [Line Items] | ||
Gross volume of derivative on absolute value basis | 247,000,000 | 208,000,000 |
Power [Member] | Capacity MW Days [Member] | ||
Derivative [Line Items] | ||
Gross volume of derivative on absolute value basis | 0 | 0 |
Power [Member] | FTRs MWh [Member] | ||
Derivative [Line Items] | ||
Gross volume of derivative on absolute value basis | 22,000,000 | 19,000,000 |
Power [Member] | Interest Rate Swaps [Member] | ||
Derivative [Line Items] | ||
Gross volume of derivative on absolute value basis | 0 | 0 |
Power [Member] | Coal Tons [Member] | ||
Derivative [Line Items] | ||
Gross volume of derivative on absolute value basis | 1,000,000 | |
PSE And G [Member] | Natural Gas Dth [Member] | ||
Derivative [Line Items] | ||
Gross volume of derivative on absolute value basis | 160,000,000 | 192,000,000 |
PSE And G [Member] | Electricity MWh [Member] | ||
Derivative [Line Items] | ||
Gross volume of derivative on absolute value basis | 0 | 0 |
PSE And G [Member] | Capacity MW Days [Member] | ||
Derivative [Line Items] | ||
Gross volume of derivative on absolute value basis | 4,000,000 | 4,000,000 |
PSE And G [Member] | FTRs MWh [Member] | ||
Derivative [Line Items] | ||
Gross volume of derivative on absolute value basis | 0 | 0 |
PSE And G [Member] | Interest Rate Swaps [Member] | ||
Derivative [Line Items] | ||
Gross volume of derivative on absolute value basis | 0 | |
PSE And G [Member] | Coal Tons [Member] | ||
Derivative [Line Items] | ||
Gross volume of derivative on absolute value basis | 0 |
Financial_Risk_Management_Acti9
Financial Risk Management Activities (Schedule Providing Credit Risk From Others, Net Of Collateral) (Detail) (Power [Member], USD $) | Sep. 30, 2013 | |
In Millions, unless otherwise specified | ||
Derivative [Line Items] | ||
Current Exposure | $197 | |
Securities held as Collateral | 17 | |
Net exposure | 197 | |
Number of Counterparties greater than 10% | 1 | |
Net Exposure of Counterparties greater than 10% | 90 | |
Investment Grade - External Rating [Member] | ||
Derivative [Line Items] | ||
Current Exposure | 180 | |
Securities held as Collateral | 17 | |
Net exposure | 180 | |
Number of Counterparties greater than 10% | 1 | |
Net Exposure of Counterparties greater than 10% | 90 | [1] |
Non-Investment Grade - External Rating [Member] | ||
Derivative [Line Items] | ||
Current Exposure | 2 | |
Securities held as Collateral | 0 | |
Net exposure | 2 | |
Number of Counterparties greater than 10% | 0 | |
Net Exposure of Counterparties greater than 10% | 0 | |
Investment Grade - No External Rating [Member] | ||
Derivative [Line Items] | ||
Current Exposure | 7 | |
Securities held as Collateral | 0 | |
Net exposure | 7 | |
Number of Counterparties greater than 10% | 0 | |
Net Exposure of Counterparties greater than 10% | 0 | |
Non-Investment Grade - No External Rating [Member] | ||
Derivative [Line Items] | ||
Current Exposure | 8 | |
Securities held as Collateral | 0 | |
Net exposure | 8 | |
Number of Counterparties greater than 10% | 0 | |
Net Exposure of Counterparties greater than 10% | $0 | |
[1] | Represents net exposure with PSE&G. |
Fair_Value_Measurements_PSEGs_
Fair Value Measurements (PSEG's, Power's And PSE&G's Respective Assets And (Liabilities) Measured At Fair Value On A Recurring Basis) (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total Mark-to-Market Derivative Assets | $291 | [1] | $291 | [1] |
Total Mark-to-Market Derivative (Liabilities) | 199 | [1] | 168 | [1] |
Power [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total Mark-to-Market Derivative Assets | 161 | [1] | 167 | [1] |
Total Mark-to-Market Derivative (Liabilities) | 59 | [1] | 61 | [1] |
Total Estimate Of Fair Value [Member] | PSEG [Member] | Energy-Related Contracts [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total Mark-to-Market Derivative Assets | 249 | [2] | 234 | [2] |
Total Mark-to-Market Derivative (Liabilities) | -199 | [2] | -168 | [2] |
Total Estimate Of Fair Value [Member] | PSEG [Member] | Interest Rate Swap [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total Mark-to-Market Derivative Assets | 42 | [3] | 57 | [3] |
Total Estimate Of Fair Value [Member] | PSEG [Member] | Equity Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value, Measured on Recurring Basis, Investments | 843 | [4] | 789 | [4] |
Total Estimate Of Fair Value [Member] | PSEG [Member] | Government Obligations [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value, Measured on Recurring Basis, Investments | 410 | [4] | 285 | [4] |
Total Estimate Of Fair Value [Member] | PSEG [Member] | Other Debt Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value, Measured on Recurring Basis, Investments | 320 | [4] | 342 | [4] |
Total Estimate Of Fair Value [Member] | PSEG [Member] | Other Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value, Measured on Recurring Basis, Investments | 62 | [4] | 124 | [4] |
Total Estimate Of Fair Value [Member] | PSEG [Member] | Rabbi Trust - Equity Securities-Mutual Funds [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value, Measured on Recurring Basis, Investments | 21 | [4] | 18 | [4] |
Total Estimate Of Fair Value [Member] | PSEG [Member] | Rabbi Trust - Debt Securities-Govt Obligations [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value, Measured on Recurring Basis, Investments | 108 | [4] | 117 | [4] |
Total Estimate Of Fair Value [Member] | PSEG [Member] | Rabbi Trust - Debt Securities-Other [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value, Measured on Recurring Basis, Investments | 44 | [4] | 47 | [4] |
Total Estimate Of Fair Value [Member] | PSEG [Member] | Rabbi Trust - Other Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value, Measured on Recurring Basis, Investments | 2 | [4] | 3 | [4] |
Total Estimate Of Fair Value [Member] | Power [Member] | Energy-Related Contracts [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total Mark-to-Market Derivative Assets | 161 | [2] | 167 | [2] |
Total Mark-to-Market Derivative (Liabilities) | -59 | [2] | -61 | [2] |
Total Estimate Of Fair Value [Member] | Power [Member] | Equity Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value, Measured on Recurring Basis, Investments | 843 | [4] | 789 | [4] |
Total Estimate Of Fair Value [Member] | Power [Member] | Government Obligations [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value, Measured on Recurring Basis, Investments | 410 | [4] | 285 | [4] |
Total Estimate Of Fair Value [Member] | Power [Member] | Other Debt Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value, Measured on Recurring Basis, Investments | 320 | [4] | 342 | [4] |
Total Estimate Of Fair Value [Member] | Power [Member] | Other Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value, Measured on Recurring Basis, Investments | 62 | [4] | 124 | [4] |
Total Estimate Of Fair Value [Member] | Power [Member] | Rabbi Trust - Equity Securities-Mutual Funds [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value, Measured on Recurring Basis, Investments | 5 | [4] | 3 | [4] |
Total Estimate Of Fair Value [Member] | Power [Member] | Rabbi Trust - Debt Securities-Govt Obligations [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value, Measured on Recurring Basis, Investments | 23 | [4] | 23 | [4] |
Total Estimate Of Fair Value [Member] | Power [Member] | Rabbi Trust - Debt Securities-Other [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value, Measured on Recurring Basis, Investments | 10 | [4] | 9 | [4] |
Total Estimate Of Fair Value [Member] | Power [Member] | Rabbi Trust - Other Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value, Measured on Recurring Basis, Investments | 0 | [4] | 1 | [4] |
Total Estimate Of Fair Value [Member] | PSE And G [Member] | Energy-Related Contracts [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total Mark-to-Market Derivative Assets | 88 | [2] | 67 | [2] |
Total Mark-to-Market Derivative (Liabilities) | -140 | [2] | -107 | [2] |
Total Estimate Of Fair Value [Member] | PSE And G [Member] | Rabbi Trust - Equity Securities-Mutual Funds [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value, Measured on Recurring Basis, Investments | 5 | [4] | 6 | [4] |
Total Estimate Of Fair Value [Member] | PSE And G [Member] | Rabbi Trust - Debt Securities-Govt Obligations [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value, Measured on Recurring Basis, Investments | 26 | [4] | 39 | [4] |
Total Estimate Of Fair Value [Member] | PSE And G [Member] | Rabbi Trust - Debt Securities-Other [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value, Measured on Recurring Basis, Investments | 10 | [4] | 15 | [4] |
Total Estimate Of Fair Value [Member] | PSE And G [Member] | Rabbi Trust - Other Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value, Measured on Recurring Basis, Investments | 0 | [4] | 1 | [4] |
Cash Collateral Netting [Member] | PSEG [Member] | Energy-Related Contracts [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total Mark-to-Market Derivative Assets | -3 | [2],[5] | -3 | [2],[5] |
Total Mark-to-Market Derivative (Liabilities) | 1 | [2],[5] | 5 | [2],[5] |
Cash Collateral Netting [Member] | PSEG [Member] | Interest Rate Swap [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total Mark-to-Market Derivative Assets | 0 | [3],[5] | 0 | [3],[5] |
Cash Collateral Netting [Member] | PSEG [Member] | Equity Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value, Measured on Recurring Basis, Investments | 0 | [4],[5] | 0 | [4],[5] |
Cash Collateral Netting [Member] | PSEG [Member] | Government Obligations [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value, Measured on Recurring Basis, Investments | 0 | [4],[5] | 0 | [4],[5] |
Cash Collateral Netting [Member] | PSEG [Member] | Other Debt Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value, Measured on Recurring Basis, Investments | 0 | [4],[5] | 0 | [4],[5] |
Cash Collateral Netting [Member] | PSEG [Member] | Other Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value, Measured on Recurring Basis, Investments | 0 | [4],[5] | 0 | [4],[5] |
Cash Collateral Netting [Member] | PSEG [Member] | Rabbi Trust - Equity Securities-Mutual Funds [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value, Measured on Recurring Basis, Investments | 0 | [4],[5] | 0 | [4],[5] |
Cash Collateral Netting [Member] | PSEG [Member] | Rabbi Trust - Debt Securities-Govt Obligations [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value, Measured on Recurring Basis, Investments | 0 | [4],[5] | 0 | [4],[5] |
Cash Collateral Netting [Member] | PSEG [Member] | Rabbi Trust - Debt Securities-Other [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value, Measured on Recurring Basis, Investments | 0 | [4],[5] | 0 | [4],[5] |
Cash Collateral Netting [Member] | PSEG [Member] | Rabbi Trust - Other Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value, Measured on Recurring Basis, Investments | 0 | [4],[5] | 0 | [4],[5] |
Cash Collateral Netting [Member] | Power [Member] | Energy-Related Contracts [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total Mark-to-Market Derivative Assets | -3 | [2],[5] | -3 | [2],[5] |
Total Mark-to-Market Derivative (Liabilities) | 1 | [2],[5] | 5 | [2],[5] |
Cash Collateral Netting [Member] | Power [Member] | Equity Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value, Measured on Recurring Basis, Investments | 0 | [4],[5] | 0 | [4],[5] |
Cash Collateral Netting [Member] | Power [Member] | Government Obligations [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value, Measured on Recurring Basis, Investments | 0 | [4],[5] | 0 | [4],[5] |
Cash Collateral Netting [Member] | Power [Member] | Other Debt Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value, Measured on Recurring Basis, Investments | 0 | [4],[5] | 0 | [4],[5] |
Cash Collateral Netting [Member] | Power [Member] | Other Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value, Measured on Recurring Basis, Investments | 0 | [4],[5] | 0 | [4],[5] |
Cash Collateral Netting [Member] | Power [Member] | Rabbi Trust - Equity Securities-Mutual Funds [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value, Measured on Recurring Basis, Investments | 0 | [4],[5] | 0 | [4],[5] |
Cash Collateral Netting [Member] | Power [Member] | Rabbi Trust - Debt Securities-Govt Obligations [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value, Measured on Recurring Basis, Investments | 0 | [4],[5] | 0 | [4],[5] |
Cash Collateral Netting [Member] | Power [Member] | Rabbi Trust - Debt Securities-Other [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value, Measured on Recurring Basis, Investments | 0 | [4],[5] | 0 | [4],[5] |
Cash Collateral Netting [Member] | Power [Member] | Rabbi Trust - Other Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value, Measured on Recurring Basis, Investments | 0 | [4],[5] | 0 | [4],[5] |
Cash Collateral Netting [Member] | PSE And G [Member] | Energy-Related Contracts [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total Mark-to-Market Derivative Assets | 0 | [2],[5] | 0 | [2],[5] |
Total Mark-to-Market Derivative (Liabilities) | 0 | [2],[5] | 0 | [2],[5] |
Cash Collateral Netting [Member] | PSE And G [Member] | Rabbi Trust - Equity Securities-Mutual Funds [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value, Measured on Recurring Basis, Investments | 0 | [4],[5] | 0 | [4],[5] |
Cash Collateral Netting [Member] | PSE And G [Member] | Rabbi Trust - Debt Securities-Govt Obligations [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value, Measured on Recurring Basis, Investments | 0 | [4],[5] | 0 | [4],[5] |
Cash Collateral Netting [Member] | PSE And G [Member] | Rabbi Trust - Debt Securities-Other [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value, Measured on Recurring Basis, Investments | 0 | [4],[5] | 0 | [4],[5] |
Cash Collateral Netting [Member] | PSE And G [Member] | Rabbi Trust - Other Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value, Measured on Recurring Basis, Investments | 0 | [4],[5] | 0 | [4],[5] |
Quoted Market Prices of Identical Assets (Level 1) [Member] | PSEG [Member] | Energy-Related Contracts [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total Mark-to-Market Derivative Assets | 0 | [2] | 0 | [2] |
Total Mark-to-Market Derivative (Liabilities) | 0 | [2] | 0 | [2] |
Quoted Market Prices of Identical Assets (Level 1) [Member] | PSEG [Member] | Interest Rate Swap [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total Mark-to-Market Derivative Assets | 0 | [3] | 0 | [3] |
Quoted Market Prices of Identical Assets (Level 1) [Member] | PSEG [Member] | Equity Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value, Measured on Recurring Basis, Investments | 842 | [4] | 789 | [4] |
Quoted Market Prices of Identical Assets (Level 1) [Member] | PSEG [Member] | Government Obligations [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value, Measured on Recurring Basis, Investments | 0 | [4] | 0 | [4] |
Quoted Market Prices of Identical Assets (Level 1) [Member] | PSEG [Member] | Other Debt Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value, Measured on Recurring Basis, Investments | 0 | [4] | 0 | [4] |
Quoted Market Prices of Identical Assets (Level 1) [Member] | PSEG [Member] | Other Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value, Measured on Recurring Basis, Investments | 0 | [4] | 0 | [4] |
Quoted Market Prices of Identical Assets (Level 1) [Member] | PSEG [Member] | Rabbi Trust - Equity Securities-Mutual Funds [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value, Measured on Recurring Basis, Investments | 21 | [4] | 18 | [4] |
Quoted Market Prices of Identical Assets (Level 1) [Member] | PSEG [Member] | Rabbi Trust - Debt Securities-Govt Obligations [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value, Measured on Recurring Basis, Investments | 0 | [4] | 0 | [4] |
Quoted Market Prices of Identical Assets (Level 1) [Member] | PSEG [Member] | Rabbi Trust - Debt Securities-Other [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value, Measured on Recurring Basis, Investments | 0 | [4] | 0 | [4] |
Quoted Market Prices of Identical Assets (Level 1) [Member] | PSEG [Member] | Rabbi Trust - Other Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value, Measured on Recurring Basis, Investments | 0 | [4] | 0 | [4] |
Quoted Market Prices of Identical Assets (Level 1) [Member] | Power [Member] | Energy-Related Contracts [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total Mark-to-Market Derivative Assets | 0 | [2] | 0 | [2] |
Total Mark-to-Market Derivative (Liabilities) | 0 | [2] | 0 | [2] |
Quoted Market Prices of Identical Assets (Level 1) [Member] | Power [Member] | Equity Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value, Measured on Recurring Basis, Investments | 842 | [4] | 789 | [4] |
Quoted Market Prices of Identical Assets (Level 1) [Member] | Power [Member] | Government Obligations [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value, Measured on Recurring Basis, Investments | 0 | [4] | 0 | [4] |
Quoted Market Prices of Identical Assets (Level 1) [Member] | Power [Member] | Other Debt Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value, Measured on Recurring Basis, Investments | 0 | [4] | 0 | [4] |
Quoted Market Prices of Identical Assets (Level 1) [Member] | Power [Member] | Other Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value, Measured on Recurring Basis, Investments | 0 | [4] | 0 | [4] |
Quoted Market Prices of Identical Assets (Level 1) [Member] | Power [Member] | Rabbi Trust - Equity Securities-Mutual Funds [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value, Measured on Recurring Basis, Investments | 5 | [4] | 3 | [4] |
Quoted Market Prices of Identical Assets (Level 1) [Member] | Power [Member] | Rabbi Trust - Debt Securities-Govt Obligations [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value, Measured on Recurring Basis, Investments | 0 | [4] | 0 | [4] |
Quoted Market Prices of Identical Assets (Level 1) [Member] | Power [Member] | Rabbi Trust - Debt Securities-Other [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value, Measured on Recurring Basis, Investments | 0 | [4] | 0 | [4] |
Quoted Market Prices of Identical Assets (Level 1) [Member] | Power [Member] | Rabbi Trust - Other Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value, Measured on Recurring Basis, Investments | 0 | [4] | 0 | [4] |
Quoted Market Prices of Identical Assets (Level 1) [Member] | PSE And G [Member] | Energy-Related Contracts [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total Mark-to-Market Derivative Assets | 0 | [2] | 0 | [2] |
Total Mark-to-Market Derivative (Liabilities) | 0 | [2] | 0 | [2] |
Quoted Market Prices of Identical Assets (Level 1) [Member] | PSE And G [Member] | Rabbi Trust - Equity Securities-Mutual Funds [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value, Measured on Recurring Basis, Investments | 5 | [4] | 6 | [4] |
Quoted Market Prices of Identical Assets (Level 1) [Member] | PSE And G [Member] | Rabbi Trust - Debt Securities-Govt Obligations [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value, Measured on Recurring Basis, Investments | 0 | [4] | 0 | [4] |
Quoted Market Prices of Identical Assets (Level 1) [Member] | PSE And G [Member] | Rabbi Trust - Debt Securities-Other [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value, Measured on Recurring Basis, Investments | 0 | [4] | 0 | [4] |
Quoted Market Prices of Identical Assets (Level 1) [Member] | PSE And G [Member] | Rabbi Trust - Other Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value, Measured on Recurring Basis, Investments | 0 | [4] | 0 | [4] |
Significant Other Observable Inputs (Level 2) [Member] | PSEG [Member] | Energy-Related Contracts [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total Mark-to-Market Derivative Assets | 156 | [2] | 157 | [2] |
Total Mark-to-Market Derivative (Liabilities) | -58 | [2] | -62 | [2] |
Significant Other Observable Inputs (Level 2) [Member] | PSEG [Member] | Interest Rate Swap [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total Mark-to-Market Derivative Assets | 42 | [3] | 57 | [3] |
Significant Other Observable Inputs (Level 2) [Member] | PSEG [Member] | Equity Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value, Measured on Recurring Basis, Investments | 1 | [4] | 0 | [4] |
Significant Other Observable Inputs (Level 2) [Member] | PSEG [Member] | Government Obligations [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value, Measured on Recurring Basis, Investments | 410 | [4] | 285 | [4] |
Significant Other Observable Inputs (Level 2) [Member] | PSEG [Member] | Other Debt Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value, Measured on Recurring Basis, Investments | 320 | [4] | 342 | [4] |
Significant Other Observable Inputs (Level 2) [Member] | PSEG [Member] | Other Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value, Measured on Recurring Basis, Investments | 62 | [4] | 124 | [4] |
Significant Other Observable Inputs (Level 2) [Member] | PSEG [Member] | Rabbi Trust - Equity Securities-Mutual Funds [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value, Measured on Recurring Basis, Investments | 0 | [4] | 0 | [4] |
Significant Other Observable Inputs (Level 2) [Member] | PSEG [Member] | Rabbi Trust - Debt Securities-Govt Obligations [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value, Measured on Recurring Basis, Investments | 108 | [4] | 117 | [4] |
Significant Other Observable Inputs (Level 2) [Member] | PSEG [Member] | Rabbi Trust - Debt Securities-Other [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value, Measured on Recurring Basis, Investments | 44 | [4] | 47 | [4] |
Significant Other Observable Inputs (Level 2) [Member] | PSEG [Member] | Rabbi Trust - Other Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value, Measured on Recurring Basis, Investments | 2 | [4] | 3 | [4] |
Significant Other Observable Inputs (Level 2) [Member] | Power [Member] | Energy-Related Contracts [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total Mark-to-Market Derivative Assets | 156 | [2] | 157 | [2] |
Total Mark-to-Market Derivative (Liabilities) | -58 | [2] | -62 | [2] |
Significant Other Observable Inputs (Level 2) [Member] | Power [Member] | Equity Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value, Measured on Recurring Basis, Investments | 1 | [4] | 0 | [4] |
Significant Other Observable Inputs (Level 2) [Member] | Power [Member] | Government Obligations [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value, Measured on Recurring Basis, Investments | 410 | [4] | 285 | [4] |
Significant Other Observable Inputs (Level 2) [Member] | Power [Member] | Other Debt Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value, Measured on Recurring Basis, Investments | 320 | [4] | 342 | [4] |
Significant Other Observable Inputs (Level 2) [Member] | Power [Member] | Other Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value, Measured on Recurring Basis, Investments | 62 | [4] | 124 | [4] |
Significant Other Observable Inputs (Level 2) [Member] | Power [Member] | Rabbi Trust - Equity Securities-Mutual Funds [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value, Measured on Recurring Basis, Investments | 0 | [4] | 0 | [4] |
Significant Other Observable Inputs (Level 2) [Member] | Power [Member] | Rabbi Trust - Debt Securities-Govt Obligations [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value, Measured on Recurring Basis, Investments | 23 | [4] | 23 | [4] |
Significant Other Observable Inputs (Level 2) [Member] | Power [Member] | Rabbi Trust - Debt Securities-Other [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value, Measured on Recurring Basis, Investments | 10 | [4] | 9 | [4] |
Significant Other Observable Inputs (Level 2) [Member] | Power [Member] | Rabbi Trust - Other Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value, Measured on Recurring Basis, Investments | 0 | [4] | 1 | [4] |
Significant Other Observable Inputs (Level 2) [Member] | PSE And G [Member] | Energy-Related Contracts [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total Mark-to-Market Derivative Assets | 0 | [2] | 0 | [2] |
Total Mark-to-Market Derivative (Liabilities) | 0 | [2] | 0 | [2] |
Significant Other Observable Inputs (Level 2) [Member] | PSE And G [Member] | Rabbi Trust - Equity Securities-Mutual Funds [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value, Measured on Recurring Basis, Investments | 0 | [4] | 0 | [4] |
Significant Other Observable Inputs (Level 2) [Member] | PSE And G [Member] | Rabbi Trust - Debt Securities-Govt Obligations [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value, Measured on Recurring Basis, Investments | 26 | [4] | 39 | [4] |
Significant Other Observable Inputs (Level 2) [Member] | PSE And G [Member] | Rabbi Trust - Debt Securities-Other [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value, Measured on Recurring Basis, Investments | 10 | [4] | 15 | [4] |
Significant Other Observable Inputs (Level 2) [Member] | PSE And G [Member] | Rabbi Trust - Other Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value, Measured on Recurring Basis, Investments | 0 | [4] | 1 | [4] |
Significant Unobservable Inputs (Level 3) [Member] | PSEG [Member] | Energy-Related Contracts [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total Mark-to-Market Derivative Assets | 96 | [2] | 80 | [2] |
Total Mark-to-Market Derivative (Liabilities) | -142 | [2] | -111 | [2] |
Significant Unobservable Inputs (Level 3) [Member] | PSEG [Member] | Interest Rate Swap [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total Mark-to-Market Derivative Assets | 0 | [3] | 0 | [3] |
Significant Unobservable Inputs (Level 3) [Member] | PSEG [Member] | Equity Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value, Measured on Recurring Basis, Investments | 0 | [4] | 0 | [4] |
Significant Unobservable Inputs (Level 3) [Member] | PSEG [Member] | Government Obligations [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value, Measured on Recurring Basis, Investments | 0 | [4] | 0 | [4] |
Significant Unobservable Inputs (Level 3) [Member] | PSEG [Member] | Other Debt Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value, Measured on Recurring Basis, Investments | 0 | [4] | 0 | [4] |
Significant Unobservable Inputs (Level 3) [Member] | PSEG [Member] | Other Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value, Measured on Recurring Basis, Investments | 0 | [4] | 0 | [4] |
Significant Unobservable Inputs (Level 3) [Member] | PSEG [Member] | Rabbi Trust - Equity Securities-Mutual Funds [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value, Measured on Recurring Basis, Investments | 0 | [4] | 0 | [4] |
Significant Unobservable Inputs (Level 3) [Member] | PSEG [Member] | Rabbi Trust - Debt Securities-Govt Obligations [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value, Measured on Recurring Basis, Investments | 0 | [4] | 0 | [4] |
Significant Unobservable Inputs (Level 3) [Member] | PSEG [Member] | Rabbi Trust - Debt Securities-Other [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value, Measured on Recurring Basis, Investments | 0 | [4] | 0 | [4] |
Significant Unobservable Inputs (Level 3) [Member] | PSEG [Member] | Rabbi Trust - Other Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value, Measured on Recurring Basis, Investments | 0 | [4] | 0 | [4] |
Significant Unobservable Inputs (Level 3) [Member] | Power [Member] | Energy-Related Contracts [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total Mark-to-Market Derivative Assets | 8 | [2] | 13 | [2] |
Total Mark-to-Market Derivative (Liabilities) | -2 | [2] | -4 | [2] |
Significant Unobservable Inputs (Level 3) [Member] | Power [Member] | Equity Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value, Measured on Recurring Basis, Investments | 0 | [4] | 0 | [4] |
Significant Unobservable Inputs (Level 3) [Member] | Power [Member] | Government Obligations [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value, Measured on Recurring Basis, Investments | 0 | [4] | 0 | [4] |
Significant Unobservable Inputs (Level 3) [Member] | Power [Member] | Other Debt Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value, Measured on Recurring Basis, Investments | 0 | [4] | 0 | [4] |
Significant Unobservable Inputs (Level 3) [Member] | Power [Member] | Other Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value, Measured on Recurring Basis, Investments | 0 | [4] | 0 | [4] |
Significant Unobservable Inputs (Level 3) [Member] | Power [Member] | Rabbi Trust - Equity Securities-Mutual Funds [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value, Measured on Recurring Basis, Investments | 0 | [4] | 0 | [4] |
Significant Unobservable Inputs (Level 3) [Member] | Power [Member] | Rabbi Trust - Debt Securities-Govt Obligations [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value, Measured on Recurring Basis, Investments | 0 | [4] | 0 | [4] |
Significant Unobservable Inputs (Level 3) [Member] | Power [Member] | Rabbi Trust - Debt Securities-Other [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value, Measured on Recurring Basis, Investments | 0 | [4] | 0 | [4] |
Significant Unobservable Inputs (Level 3) [Member] | Power [Member] | Rabbi Trust - Other Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value, Measured on Recurring Basis, Investments | 0 | [4] | 0 | [4] |
Significant Unobservable Inputs (Level 3) [Member] | PSE And G [Member] | Energy-Related Contracts [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total Mark-to-Market Derivative Assets | 88 | [2] | 67 | [2] |
Total Mark-to-Market Derivative (Liabilities) | -140 | [2] | -107 | [2] |
Significant Unobservable Inputs (Level 3) [Member] | PSE And G [Member] | Rabbi Trust - Equity Securities-Mutual Funds [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value, Measured on Recurring Basis, Investments | 0 | [4] | 0 | [4] |
Significant Unobservable Inputs (Level 3) [Member] | PSE And G [Member] | Rabbi Trust - Debt Securities-Govt Obligations [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value, Measured on Recurring Basis, Investments | 0 | [4] | 0 | [4] |
Significant Unobservable Inputs (Level 3) [Member] | PSE And G [Member] | Rabbi Trust - Debt Securities-Other [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value, Measured on Recurring Basis, Investments | 0 | [4] | 0 | [4] |
Significant Unobservable Inputs (Level 3) [Member] | PSE And G [Member] | Rabbi Trust - Other Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value, Measured on Recurring Basis, Investments | $0 | [4] | $0 | [4] |
[1] | Substantially all of Power's and PSEG's derivative instruments are contracts subject to master netting agreements. Contracts not subject to master netting or similar agreements are immaterial and did not have any collateral posted or received as of September 30, 2013 and December 31, 2012. PSE&G does not have any derivative contracts subject to master netting or similar agreements. | |||
[2] | Level 2—Fair values for energy-related contracts are obtained primarily using a market-based approach. Most derivative contracts (forward purchase or sale contracts and swaps) are valued using the average of the bid/ask midpoints from multiple broker or dealer quotes or auction prices. Prices used in the valuation process are also corroborated independently by management to determine that values are based on actual transaction data or, in the absence of transactions, bid and offers for the day. Examples may include certain exchange and non-exchange traded capacity and electricity contracts and natural gas physical or swap contracts based on market prices, basis adjustments and other premiums where adjustments and premiums are not considered significant to the overall inputs.Level 3—For energy-related contracts, which include more complex agreements where limited observable inputs or pricing information are available, modeling techniques are employed using assumptions reflective of contractual terms, current market rates, forward price curves, discount rates and risk factors, as applicable. Fair values of other energy contracts may be based on broker quotes that we cannot corroborate with actual market transaction data. | |||
[3] | Interest rate swaps are valued using quoted prices on commonly quoted intervals, which are interpolated for periods different than the quoted intervals, as inputs to a market valuation model. Market inputs can generally be verified and model selection does not involve significant management judgment. | |||
[4] | The NDT Fund maintains investments in various equity and fixed income securities classified as “available for sale.†The Rabbi Trust maintains investments in an S&P 500 index fund and various fixed income securities classified as “available for sale.â€Â 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). Level 1—Investments in marketable equity securities within the NDT Fund are primarily investments in common stocks across a broad range of industries and sectors. Most equity securities are priced utilizing the principal market close price or, in some cases, midpoint, bid or ask price (primarily Level 1). The Rabbi Trust equity index fund is valued based on quoted prices in an active market (Level 1).Level 2—NDT and Rabbi Trust fixed income securities are limited to investment grade corporate bonds and United States Treasury obligations or Federal Agency asset-backed securities with a wide range of maturities. Since many fixed income securities do not trade on a daily basis, they are priced using an evaluated pricing methodology 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 (primarily Level 2). Short-term investments and certain commingled temporary investments are valued using observable market prices or market parameters such as time-to-maturity, coupon rate, quality rating and current yield (primarily Level 2). | |||
[5] | Cash collateral netting represents collateral amounts netted against derivative assets and liabilities as permitted under the accounting guidance for Offsetting of Amounts Related to Certain Contracts. |
Fair_Value_Measurements_Schedu
Fair Value Measurements (Schedule Of Quantitative Information About Level 3 Fair Value Measurements) (Detail) (USD $) | 9 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 | ||
Power [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, Fair Value | $8 | $13 | ||
Liabilities, Fair Value | 2 | 4 | ||
PSE And G [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, Fair Value | 88 | 67 | ||
Liabilities, Fair Value | 140 | 107 | ||
PSEG [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, Fair Value | 96 | 80 | ||
Liabilities, Fair Value | 142 | 111 | ||
Electric Swaps [Member] | Power [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, Fair Value | 7 | 7 | ||
Liabilities, Fair Value | 0 | -1 | ||
Valuation Technique (s) | Discounted Cash Flow | Discounted Cash Flow | ||
Significant Unobservable Inputs | Power Basis | Power Basis | ||
Electric Load Deals [Member] | Power [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, Fair Value | 0 | 1 | ||
Liabilities, Fair Value | -2 | -2 | ||
Valuation Technique (s) | Discounted Cash Flow | Discounted Cash Flow | ||
Significant Unobservable Inputs | Historic Load Variability | Historic Load Variability | ||
Various [Member] | Power [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, Fair Value | 1 | [1] | 5 | [1] |
Liabilities, Fair Value | 0 | [1] | -1 | [1] |
Forward Contracts [Member] | PSE And G [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, Fair Value | 88 | 67 | ||
Liabilities, Fair Value | ($140) | ($107) | ||
Valuation Technique (s) | Discounted Cash Flow | Discounted Cash Flow | ||
Significant Unobservable Inputs | Long-Term Capacity Prices and Transportation Costs | Long-Term Gas Basis and Capacity Prices | ||
Minimum [Member] | Electric Load Deals [Member] | Power [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Historic Load Variability | -5.00% | -5.00% | ||
Minimum [Member] | MMBTU [Member] | Long-Term Gas Supply [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Longer-Term Basis Range | 0 | |||
Minimum [Member] | MW-Day [Member] | Long Term Electric Capacity [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Forecasted capacity prices | 100 | 100 | ||
Minimum [Member] | Dekatherm [Member] | Long-Term Gas Supply [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Longer-Term Basis Range | 1 | |||
Minimum [Member] | MWh [Member] | Electric Swaps [Member] | Power [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Power Basis Range | 0 | 0 | ||
Maximum [Member] | Electric Load Deals [Member] | Power [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Historic Load Variability | 10.00% | 10.00% | ||
Maximum [Member] | MMBTU [Member] | Long-Term Gas Supply [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Longer-Term Basis Range | 4 | |||
Maximum [Member] | MW-Day [Member] | Long Term Electric Capacity [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Forecasted capacity prices | 400 | 400 | ||
Maximum [Member] | Dekatherm [Member] | Long-Term Gas Supply [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Longer-Term Basis Range | 1 | |||
Maximum [Member] | MWh [Member] | Electric Swaps [Member] | Power [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Power Basis Range | 10 | 10 | ||
[1] | Includes gas supply positions which are immaterial as of September 30, 2013 and December 31, 2012. Also includes long-term electric capacity positions which are immaterial as of December 31, 2012. |
Fair_Value_Measurements_Change
Fair Value Measurements (Changes In Level 3 Assets And (Liabilities) Measured At Fair Value On A Recurring Basis) (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Settlements | ($1) | ($9) | $9 | ($52) | ||||
Power [Member] | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Gains and losses attributable to changes in net derivative assets and liabilities, included in Operating Income | 1 | -1 | -16 | 40 | ||||
Gains and losses attributable to changes in net derivative assets and liabilities, unrealized | 1 | -10 | -7 | -12 | ||||
Derivative [Member] | Power [Member] | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Transfers In (Out) | -4 | |||||||
Net Derivative Assets (Liabilities) [Member] | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Opening Balance | -35 | -36 | -31 | 21 | ||||
Included in Income | 1 | [1] | 1 | [1] | -16 | [2] | 40 | [2] |
Included in Regulatory Assets/Liabilities | -11 | 25 | [3] | -12 | [3] | -30 | [3] | |
Purchases, (Sales) | 0 | 0 | 0 | 0 | ||||
Issuances (Settlements) | -1 | [4] | 9 | [4] | 9 | [4] | -52 | [4] |
Transfers In (Out) | 0 | [5] | 0 | [5] | 4 | [5] | 0 | [5] |
Closing Balance | -46 | -21 | -46 | -21 | ||||
Net Derivative Assets (Liabilities) [Member] | Power [Member] | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Opening Balance | 6 | 22 | 9 | 24 | ||||
Included in Income | 1 | [1] | 1 | [1] | -16 | [2] | 40 | [2] |
Included in Regulatory Assets/Liabilities | 0 | [3] | 0 | [3] | 0 | [3] | 0 | [3] |
Purchases, (Sales) | 0 | 0 | 0 | 0 | ||||
Issuances (Settlements) | -1 | [4] | 9 | [4] | 9 | [4] | -52 | [4] |
Transfers In (Out) | 0 | [5] | 0 | [5] | 4 | [5] | 0 | [5] |
Closing Balance | 6 | 12 | 6 | 12 | ||||
Net Derivative Assets (Liabilities) [Member] | PSE And G [Member] | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Opening Balance | -41 | -58 | -40 | -3 | ||||
Included in Income | 0 | [1] | 0 | [1] | 0 | [2] | 0 | [2] |
Included in Regulatory Assets/Liabilities | -11 | [3] | 25 | [3] | -12 | [3] | -30 | [3] |
Purchases, (Sales) | 0 | 0 | 0 | 0 | ||||
Issuances (Settlements) | 0 | [4] | 0 | [4] | 0 | [4] | 0 | [4] |
Transfers In (Out) | 0 | [5] | 0 | [5] | 0 | [5] | 0 | [5] |
Closing Balance | -52 | -33 | -52 | -33 | ||||
Non Recourse Debt [Member] | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Opening Balance | -50 | |||||||
Included in Income | 50 | [2] | ||||||
Included in Regulatory Assets/Liabilities | 0 | [3] | ||||||
Purchases, (Sales) | 0 | |||||||
Issuances (Settlements) | 0 | [4] | ||||||
Transfers In (Out) | 0 | [5] | ||||||
Closing Balance | 0 | 0 | ||||||
Non Recourse Debt [Member] | PSEG [Member] | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Opening Balance | 0 | |||||||
Included in Income | 0 | [1] | ||||||
Included in Regulatory Assets/Liabilities | 0 | [3] | ||||||
Purchases, (Sales) | 0 | |||||||
Issuances (Settlements) | 0 | [4] | ||||||
Transfers In (Out) | 0 | [5] | ||||||
Closing Balance | $0 | $0 | ||||||
[1] | PSEG’s and Power’s gains and losses attributable to changes in net derivative assets and liabilities include $1 million and $(1) million in Operating Income in 2013 and 2012, respectively. The $1 million in Operating Income in 2013 is unrealized. Of the $(1) million in Operating Income in 2012, $(10) million is unrealized. Energy Holdings' release from its obligation under the non-recourse debt is included in PSEG's Operating Income for 2012 and is offset by the write-off of the related assets. | |||||||
[2] | PSEG’s and Power’s gains and losses attributable to changes in net derivative assets and liabilities include $(16) million and $40 million in Operating Income in 2013 and 2012, respectively. Of the $(16) million in Operating Income in 2013, $(7) million is unrealized. Of the $40 million in Operating Income in 2012, $(12) million is unrealized. Energy Holdings' release from its obligation under the non-recourse debt is included in PSEG's Operating Income for 2012 and is offset by the write-off of the related assets. | |||||||
[3] | Mainly includes gains/losses on PSE&G’s derivative contracts that are not included in either earnings or OCI, as they are deferred as a Regulatory Asset/Liability and are expected to be recovered from/returned to PSE&G’s customers. | |||||||
[4] | Represents $(1) million and $(9) million in settlements for the three months ended September 30, 2013 and 2012. Includes $9 million and $(52) million in settlements for the nine months ended September 30, 2013 and 2012, respectively. | |||||||
[5] | During the nine months ended September 30, 2013, $4 million of net derivatives assets/liabilities were transferred from Level 3 to Level 2 due to more observable pricing for the underlying securities. The transfer was recognized as of the beginning of the first quarter (i.e. the quarter in which the transfer occurred), as per PSEG's policy. There were no transfers among levels during the three months ended September 30, 2013 and 2012 and the nine months ended September 30, 2012. |
Fair_Value_Measurements_Narrat
Fair Value Measurements (Narrative) (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | ||||
Power [Member] | Power [Member] | Minimum [Member] | Maximum [Member] | ||||||||
MMBTU [Member] | MMBTU [Member] | ||||||||||
Long-Term Gas Supply [Member] | Long-Term Gas Supply [Member] | ||||||||||
Minimum Number of Pricing Inputs | 2 | ||||||||||
Longer-Term Basis Range | 0 | 4 | |||||||||
Current liabilities, fair value | $36,000,000 | [1] | $46,000,000 | [1] | $36,000,000 | [1] | $46,000,000 | [1] | |||
Net assets measured at fair value on a recurring basis | 1,900,000,000 | 1,800,000,000 | |||||||||
Net assets measured at fair value on a recurring basis measured using unobservable input and as Level 3 | ($46,000,000) | ($21,000,000) | |||||||||
[1] | Substantially all of Power's and PSEG's derivative instruments are contracts subject to master netting agreements. Contracts not subject to master netting or similar agreements are immaterial and did not have any collateral posted or received as of September 30, 2013 and December 31, 2012. PSE&G does not have any derivative contracts subject to master netting or similar agreements. |
Fair_Value_Measurements_Fair_V
Fair Value Measurements (Fair Value Of Debt) (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Long-Term Debt, Carrying Amount | $8,486 | $7,939 | ||
Long-Term Debt, Fair Value | 9,077 | 9,324 | ||
Power - Recourse Debt [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Long-Term Debt, Carrying Amount | 2,041 | [1] | 2,340 | [1] |
Long-Term Debt, Fair Value | 2,355 | [1] | 2,818 | [1] |
PSE And G [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Long-Term Debt, Carrying Amount | 5,841 | [1] | 4,795 | [1] |
Long-Term Debt, Fair Value | 6,058 | [1] | 5,606 | [1] |
Transition Funding (PSE&G) [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Long-Term Debt, Carrying Amount | 534 | [1] | 690 | [1] |
Long-Term Debt, Fair Value | 578 | [1] | 765 | [1] |
Transition Funding II (PSE&G) [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Long-Term Debt, Carrying Amount | 27 | [1] | 32 | [1] |
Long-Term Debt, Fair Value | 28 | [1] | 34 | [1] |
Energy Holdings Project Level, Non-Recourse Debt [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Long-Term Debt, Carrying Amount | 16 | [2] | 44 | [2] |
Long-Term Debt, Fair Value | 16 | [2] | 44 | [2] |
PSEG [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Long-Term Debt, Carrying Amount | 27 | [3] | 38 | [3] |
Long-Term Debt, Fair Value | $42 | [3] | $57 | [3] |
[1] | The debt fair valuation is based on the present value of each bond’s future cash flows. The discount rates used in the present value analysis are based on an estimate of new issue bond yields across the treasury curve. When a bond has embedded options, an interest rate model is used to reflect the impact of interest rate volatility into the analysis (primarily Level 2 measurements). | |||
[2] | Non-recourse project debt is valued as equivalent to the amortized cost and is classified as a Level 3 measurement. | |||
[3] | Fair value represents net offsets to debt resulting from adjustments from interest rate swaps entered into to hedge certain debt at Power. Carrying amount represents such fair value reduced by the unamortized premium resulting from a debt exchange entered into between Power and Energy Holdings. |
Other_Income_And_Deductions_Sc
Other Income And Deductions (Schedule Of Other Income) (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Component of Other Income, Nonoperating [Line Items] | ||||||||
NDT Fund Gains, Interest, Dividend and Other Income | $45 | $103 | $125 | $167 | ||||
Allowance for Funds Used During Construction | 5 | 6 | 17 | 17 | ||||
Solar Loan Interest | 7 | 5 | 18 | 13 | ||||
Other | 2 | 7 | 12 | 19 | ||||
Total Other Income | 59 | 121 | 172 | 216 | ||||
Power [Member] | ||||||||
Component of Other Income, Nonoperating [Line Items] | ||||||||
NDT Fund Gains, Interest, Dividend and Other Income | 45 | 103 | 125 | 167 | ||||
Allowance for Funds Used During Construction | 0 | 0 | 0 | 0 | ||||
Solar Loan Interest | 0 | 0 | 0 | 0 | ||||
Other | 0 | 1 | 2 | 4 | ||||
Total Other Income | 45 | 104 | 127 | 171 | ||||
PSE And G [Member] | ||||||||
Component of Other Income, Nonoperating [Line Items] | ||||||||
NDT Fund Gains, Interest, Dividend and Other Income | 0 | 0 | 0 | 0 | ||||
Allowance for Funds Used During Construction | 5 | 6 | 17 | 17 | ||||
Solar Loan Interest | 7 | 5 | 18 | 13 | ||||
Other | 1 | 5 | 6 | 9 | ||||
Total Other Income | 13 | 16 | 41 | 39 | ||||
Other Segments [Member] | ||||||||
Component of Other Income, Nonoperating [Line Items] | ||||||||
NDT Fund Gains, Interest, Dividend and Other Income | 0 | [1] | 0 | [1] | 0 | [1] | 0 | [1] |
Allowance for Funds Used During Construction | 0 | [1] | 0 | [1] | 0 | [1] | 0 | [1] |
Solar Loan Interest | 0 | [1] | 0 | [1] | 0 | [1] | 0 | [1] |
Other | 1 | [1] | 1 | [1] | 4 | [1] | 6 | [1] |
Total Other Income | $1 | [1] | $1 | [1] | $4 | [1] | $6 | [1] |
[1] | Other primarily consists of activity at PSEG (as parent company), Energy Holdings, Services and intercompany eliminations. |
Other_Income_And_Deductions_Sc1
Other Income And Deductions (Schedule Of Other Deductions) (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Component of Other Income, Nonoperating [Line Items] | ||||||||
NDT Fund Realized Losses and Expenses | $11 | $20 | $40 | $45 | ||||
Other | 1 | 6 | 14 | 16 | ||||
Total Other Deductions | 12 | 26 | 54 | 61 | ||||
Power [Member] | ||||||||
Component of Other Income, Nonoperating [Line Items] | ||||||||
NDT Fund Realized Losses and Expenses | 11 | 20 | 40 | 45 | ||||
Other | 0 | 0 | 9 | 7 | ||||
Total Other Deductions | 11 | 20 | 49 | 52 | ||||
PSE And G [Member] | ||||||||
Component of Other Income, Nonoperating [Line Items] | ||||||||
NDT Fund Realized Losses and Expenses | 0 | 0 | 0 | 0 | ||||
Other | 1 | 6 | 3 | 8 | ||||
Total Other Deductions | 1 | 6 | 3 | 8 | ||||
Other Segments [Member] | ||||||||
Component of Other Income, Nonoperating [Line Items] | ||||||||
NDT Fund Realized Losses and Expenses | 0 | [1] | 0 | [1] | 0 | [1] | 0 | [1] |
Other | 0 | [1] | 0 | [1] | 2 | [1] | 1 | [1] |
Total Other Deductions | $0 | [1] | $0 | [1] | $2 | [1] | $1 | [1] |
[1] | Other primarily consists of activity at PSEG (as parent company), Energy Holdings, Services and intercompany eliminations. |
Income_Taxes_Schedule_Of_Effec
Income Taxes (Schedule Of Effective Tax Rates) (Detail) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
PSEG [Member] | ||||
Effective tax rate | 41.00% | 41.00% | 40.50% | 36.30% |
Power [Member] | ||||
Effective tax rate | 41.00% | 42.40% | 40.60% | 41.00% |
PSE And G [Member] | ||||
Effective tax rate | 40.60% | 39.90% | 40.00% | 35.40% |
Income_Taxes_Narrative_Detail
Income Taxes (Narrative) (Detail) (USD $) | 0 Months Ended | 9 Months Ended | 16 Months Ended | 9 Months Ended | |||||
In Millions, unless otherwise specified | Jun. 26, 2009 | Sep. 15, 2008 | Dec. 17, 2007 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2011 | Sep. 30, 2012 |
Power [Member] | PSEG [Member] | PSEG [Member] | PSEG [Member] | PSE And G [Member] | |||||
Component of Other Expense, Nonoperating [Line Items] | |||||||||
Bonus depreciation for tax purposes | 50.00% | 100.00% | |||||||
Average tax benefits recognition period | 20 years | ||||||||
Tax deposit | $140 | $80 | $100 | ||||||
Unrecognized tax benefit decrease on settlement with IRS | $1 | $71 | $30 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Loss), Net of Tax (Changes of AOCI) (Details) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | |||||||||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2012 | Dec. 31, 2011 | Sep. 30, 2012 | Dec. 31, 2011 | Sep. 30, 2012 | Dec. 31, 2011 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 |
Energy Related Contracts [Member] | Energy Related Contracts [Member] | Pension and OPEB Plans [Member] | Pension and OPEB Plans [Member] | Available-for-Sale Securities [Member] | Available-for-Sale Securities [Member] | PSEG [Member] | PSEG [Member] | PSEG [Member] | PSEG [Member] | PSEG [Member] | PSEG [Member] | PSEG [Member] | PSEG [Member] | Power [Member] | Power [Member] | Power [Member] | Power [Member] | Power [Member] | Power [Member] | Power [Member] | Power [Member] | Power [Member] | Power [Member] | Power [Member] | Power [Member] | Power [Member] | |||||
Energy Related Contracts [Member] | Energy Related Contracts [Member] | Pension and OPEB Plans [Member] | Pension and OPEB Plans [Member] | Available-for-Sale Securities [Member] | Available-for-Sale Securities [Member] | Energy Related Contracts [Member] | Energy Related Contracts [Member] | Energy Related Contracts [Member] | Pension and OPEB Plans [Member] | Pension and OPEB Plans [Member] | Pension and OPEB Plans [Member] | Available-for-Sale Securities [Member] | Available-for-Sale Securities [Member] | Available-for-Sale Securities [Member] | |||||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Beginning Balance | ($388) | ($337) | $11 | $31 | ($415) | ($438) | $82 | $70 | ($362) | ($388) | $3 | $7 | ($466) | ($485) | $101 | $90 | ($303) | ($328) | $4 | $9 | ($405) | ($422) | $98 | $85 | |||||||
Other Comprehensive Income before Reclassifications | 28 | 54 | 1 | 1 | 0 | 0 | 27 | 53 | 29 | 57 | 1 | 1 | 0 | 0 | 28 | 56 | |||||||||||||||
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) | -4 | -4 | -2 | -6 | 9 | 28 | -11 | -26 | -5 | -8 | -2 | -7 | 8 | 25 | -11 | -26 | |||||||||||||||
Other Comprehensive Income (Loss), net of tax | 24 | -12 | 50 | 15 | 24 | 50 | -1 | -5 | 9 | 28 | 16 | 27 | 24 | -15 | 49 | 11 | -1 | -6 | -21 | 8 | 25 | 21 | 17 | 30 | 11 | ||||||
Accumulated Other Comprehensive Income (Loss), Ending Balance | ($338) | ($322) | ($338) | ($322) | $11 | $31 | ($415) | ($438) | $82 | $70 | ($338) | ($338) | $2 | $2 | ($457) | ($457) | $117 | $117 | ($279) | ($279) | $3 | $3 | ($397) | ($397) | $115 | $115 |
Accumulated_Other_Comprehensiv3
Accumulated Other Comprehensive Income (Loss), Net of Tax (Reclassifications of AOCI) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||||
Operating Revenues | $2,554 | $2,402 | $7,650 | $7,375 |
Interest Expense | 100 | 106 | 303 | 310 |
Income (Loss) from Continuing Operations before Income Taxes | 660 | 588 | 1,751 | 1,650 |
Tax (Expense) Benefit | -270 | -241 | -708 | -599 |
Net Income (Loss) | 390 | 347 | 1,043 | 1,051 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||||
Income (Loss) from Continuing Operations before Income Taxes | 11 | 17 | ||
Tax (Expense) Benefit | -7 | -13 | ||
Net Income (Loss) | 4 | 4 | ||
Energy Related Contracts [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||||
Operating Revenues | 3 | 11 | ||
Tax (Expense) Benefit | -1 | -4 | ||
Net Income (Loss) | 2 | 7 | ||
Interest Rate Swap [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||||
Interest Expense | 0 | -1 | ||
Tax (Expense) Benefit | 0 | 0 | ||
Net Income (Loss) | 0 | -1 | ||
Pension and OPEB Plans [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||||
Amortization of Prior Service Cost, Pre-Tax | 3 | 8 | ||
Amortization of Prior Service Cost, Tax | -1 | -3 | ||
Amortization of Prior Service Cost, After-Tax | 2 | 5 | ||
Amortization of Actuarial Loss, Pre-Tax | -18 | -56 | ||
Amortization of Actuarial Loss, Tax | 7 | 23 | ||
Amortization of Actuarial Loss, After-Tax | -11 | -33 | ||
Available-for-Sale Securities [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||||
Realized Gains, Pre-Tax | 35 | 99 | ||
Realized Gains, Tax | -18 | -51 | ||
Realized Gains. After-Tax | 17 | 48 | ||
Realized Losses, Pre-Tax | -9 | -37 | ||
Realized Losses, Tax | 4 | 18 | ||
Realized Losses, After-Tax | -5 | -19 | ||
Other-Than-Temporary Impairments, Pre-Tax | -3 | -7 | ||
Other-Than-Temporary Impairments, Tax | 2 | 4 | ||
Other-Than-Temporary Impairments, After-Tax | -1 | -3 | ||
Power [Member] | ||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||||
Operating Revenues | 1,169 | 1,038 | 3,806 | 3,584 |
Interest Expense | 26 | 35 | 85 | 97 |
Income (Loss) from Continuing Operations before Income Taxes | 374 | 314 | 945 | 912 |
Tax (Expense) Benefit | -153 | -133 | -383 | -374 |
Net Income (Loss) | 221 | 181 | 562 | 538 |
Power [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||||
Income (Loss) from Continuing Operations before Income Taxes | 12 | 23 | ||
Tax (Expense) Benefit | -7 | -15 | ||
Net Income (Loss) | 5 | 8 | ||
Power [Member] | Energy Related Contracts [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||||
Operating Revenues | 3 | 11 | ||
Tax (Expense) Benefit | -1 | -4 | ||
Net Income (Loss) | 2 | 7 | ||
Power [Member] | Pension and OPEB Plans [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||||
Amortization of Prior Service Cost, Pre-Tax | 3 | 7 | ||
Amortization of Prior Service Cost, Tax | -1 | -3 | ||
Amortization of Prior Service Cost, After-Tax | 2 | 4 | ||
Amortization of Actuarial Loss, Pre-Tax | -17 | -49 | ||
Amortization of Actuarial Loss, Tax | 7 | 20 | ||
Amortization of Actuarial Loss, After-Tax | -10 | -29 | ||
Power [Member] | Available-for-Sale Securities [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||||
Realized Gains, Pre-Tax | 35 | 95 | ||
Realized Gains, Tax | -18 | -49 | ||
Realized Gains. After-Tax | 17 | 46 | ||
Realized Losses, Pre-Tax | -9 | -34 | ||
Realized Losses, Tax | 4 | 17 | ||
Realized Losses, After-Tax | -5 | -17 | ||
Other-Than-Temporary Impairments, Pre-Tax | -3 | -7 | ||
Other-Than-Temporary Impairments, Tax | 2 | 4 | ||
Other-Than-Temporary Impairments, After-Tax | ($1) | ($3) |
Accumulated_Other_Comprehensiv4
Accumulated Other Comprehensive Income (Loss), Net Of Tax (Schedule Of AOCI) (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||||||||||||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Sep. 30, 2012 | Dec. 31, 2011 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2012 | Dec. 31, 2011 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2012 | Dec. 31, 2011 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2012 |
Power [Member] | Power [Member] | Power [Member] | Power [Member] | PSE And G [Member] | PSE And G [Member] | PSE And G [Member] | Other [Member] | Energy Related Contracts [Member] | Energy Related Contracts [Member] | Energy Related Contracts [Member] | Energy Related Contracts [Member] | Energy Related Contracts [Member] | Energy Related Contracts [Member] | Energy Related Contracts [Member] | Pension and OPEB Plans [Member] | Pension and OPEB Plans [Member] | Pension and OPEB Plans [Member] | Pension and OPEB Plans [Member] | Pension and OPEB Plans [Member] | Pension and OPEB Plans [Member] | Pension and OPEB Plans [Member] | Available-for-Sale Securities [Member] | Available-for-Sale Securities [Member] | Available-for-Sale Securities [Member] | Available-for-Sale Securities [Member] | Available-for-Sale Securities [Member] | Available-for-Sale Securities [Member] | Available-for-Sale Securities [Member] | |||||
Power [Member] | Power [Member] | Power [Member] | PSE And G [Member] | Other [Member] | Power [Member] | Power [Member] | Power [Member] | PSE And G [Member] | Other [Member] | Power [Member] | Power [Member] | Power [Member] | PSE And G [Member] | Other [Member] | |||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Beginning Balance | ($388) | ($337) | ($303) | ($328) | $1 | $2 | $11 | $31 | $4 | $9 | ($415) | ($438) | ($405) | ($422) | $82 | $70 | $98 | $85 | |||||||||||||||
Other Comprehensive Income (Loss), Net of Tax | 24 | -12 | 50 | 15 | 24 | -15 | 49 | 11 | 0 | 4 | -1 | -6 | -21 | 0 | 1 | 8 | 25 | 21 | 0 | 2 | 17 | 30 | 11 | 0 | 1 | ||||||||
Accumulated Other Comprehensive Income (Loss), Ending Balance | ($338) | ($322) | ($338) | ($322) | ($279) | ($279) | $1 | $2 | $11 | $31 | $3 | $3 | ($415) | ($438) | ($397) | ($397) | $82 | $70 | $115 | $115 |
Recovered_Sheet4
Earnings Per Share (EPS) And Dividends (Basic And Diluted Earnings Per Share Computation) (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, except Share data in Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Disclosure Earnings Per Share E P S And Dividends Basic And Diluted Earnings Per Share Computation [Abstract] | ||||
Net Income | $390 | $347 | $1,043 | $1,051 |
Weighted Average Common Shares Outstanding, Basic | 505,858 | 505,914 | 505,900 | 505,942 |
Effect of Stock Based Compensation Awards, Basic | 0 | 0 | 0 | 0 |
Total Shares, Basic | 505,858 | 505,914 | 505,900 | 505,942 |
Net Income, Basic | $0.77 | $0.69 | $2.06 | $2.08 |
Weighted Average Common Shares Outstanding, Diluted | 505,858 | 505,914 | 505,900 | 505,942 |
Effect of Stock Based Compensation Awards, Diluted | 1,836 | 1,197 | 1,533 | 1,095 |
Total Shares, Diluted | 507,694 | 507,111 | 507,433 | 507,037 |
Net Income, Diluted | $0.77 | $0.68 | $2.06 | $2.07 |
Recovered_Sheet5
Earnings Per Share (EPS) And Dividends (Dividend Payments On Common Stock) (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Disclosure Earnings Per Share E P S And Dividends Dividend Payments On Common Stock [Abstract] | ||||
Dividend Payments on Common Stock, Per Share | $0.36 | $0.36 | $1.08 | $1.06 |
Dividend Payments on Common Stock | $182 | $180 | $546 | $538 |
Financial_Information_By_Busin2
Financial Information By Business Segments (Financial Information By Business Segments) (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |||||
Segment Reporting Information [Line Items] | ||||||||||
Net Income (Loss) | $390 | $347 | $1,043 | $1,051 | ||||||
Total Assets | 32,610 | 32,610 | 31,725 | |||||||
Power [Member] | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Operating Revenues | 1,169 | 1,038 | 3,806 | 3,584 | ||||||
Income (Loss) From Continuing Operations | 221 | 181 | 562 | 538 | ||||||
Net Income (Loss) | 221 | 181 | 562 | 538 | ||||||
Segment Earnings (Loss) | 221 | 181 | 562 | 538 | ||||||
Gross Additions to Long-Lived Assets | 197 | 149 | 419 | 493 | ||||||
Total Assets | 10,721 | 10,721 | 11,032 | |||||||
Investments in Equity Method Subsidiaries | 40 | 40 | 40 | |||||||
PSE And G [Member] | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Operating Revenues | 1,666 | 1,683 | 5,084 | 5,029 | ||||||
Income (Loss) From Continuing Operations | 168 | 155 | 468 | 453 | ||||||
Net Income (Loss) | 168 | 155 | 468 | 453 | ||||||
Segment Earnings (Loss) | 168 | 155 | 468 | 453 | ||||||
Gross Additions to Long-Lived Assets | 480 | 499 | 1,628 | 1,369 | ||||||
Total Assets | 20,330 | 20,330 | 19,223 | |||||||
Investments in Equity Method Subsidiaries | 0 | 0 | 0 | |||||||
Energy Holdings [Member] | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Operating Revenues | 8 | 15 | 42 | 49 | ||||||
Income (Loss) From Continuing Operations | -3 | 7 | 1 | 49 | ||||||
Net Income (Loss) | -3 | 7 | 1 | 49 | ||||||
Segment Earnings (Loss) | -3 | 7 | 1 | 49 | ||||||
Gross Additions to Long-Lived Assets | 13 | 30 | 40 | 85 | ||||||
Total Assets | 1,448 | 1,448 | 1,454 | |||||||
Investments in Equity Method Subsidiaries | 100 | 100 | 94 | |||||||
PSEG Other [Member] | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Operating Revenues | -289 | [1] | -334 | [1] | -1,282 | [1] | -1,287 | [1] | ||
Income (Loss) From Continuing Operations | 4 | [1] | 4 | [1] | 12 | [1] | 11 | [1] | ||
Net Income (Loss) | 4 | [1] | 4 | [1] | 12 | [1] | 11 | [1] | ||
Segment Earnings (Loss) | 4 | [1] | 4 | [1] | 12 | [1] | 11 | [1] | ||
Gross Additions to Long-Lived Assets | 6 | [1] | 11 | [1] | 15 | [1] | 22 | [1] | ||
Total Assets | 111 | [1] | 111 | [1] | 16 | [1] | ||||
Investments in Equity Method Subsidiaries | 0 | [1] | 0 | [1] | 0 | [1] | ||||
Consolidated [Member] | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Operating Revenues | 2,554 | 2,402 | 7,650 | 7,375 | ||||||
Income (Loss) From Continuing Operations | 390 | 347 | 1,043 | 1,051 | ||||||
Net Income (Loss) | 390 | 347 | 1,043 | 1,051 | ||||||
Segment Earnings (Loss) | 390 | 347 | 1,043 | 1,051 | ||||||
Gross Additions to Long-Lived Assets | 696 | 689 | 2,102 | 1,969 | ||||||
Total Assets | 32,610 | 32,610 | 31,725 | |||||||
Investments in Equity Method Subsidiaries | $140 | $140 | $134 | |||||||
[1] | Other activities include amounts applicable to PSEG (as parent company), Services and intercompany eliminations, primarily relating to intercompany transactions between Power and PSE&G. No gains or losses are recorded on any intercompany transactions; rather, all intercompany transactions are priced in accordance with applicable regulations, including affiliate pricing rules, or in the case of the BGS and BGSS contracts between Power and PSE&G, at rates prescribed by the BPU. For a further discussion of the intercompany transactions between Power and PSE&G, see Note 18. Related-Party Transactions. |
RelatedParty_Transactions_Sche
Related-Party Transactions (Schedule Of Related Party Transactions, Revenue) (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Power [Member] | ||||||||
Billings From Power through BGSS | $48 | [1] | $67 | [1] | $654 | [1] | $630 | [1] |
Billings From Power through BGS | 236 | [1] | 258 | [1] | 621 | [1] | 639 | [1] |
Total Revenue from Affiliates | 284 | 325 | 1,275 | 1,269 | ||||
Administrative Billings from Services | -43 | [2] | -38 | [2] | 131 | [2] | 110 | [2] |
Total Expense Billings from Affiliates | -43 | -38 | -131 | -110 | ||||
PSE And G [Member] | ||||||||
Billings From Power through BGSS | -48 | [1] | -67 | [1] | -654 | [1] | -630 | [1] |
Billings From Power through BGS | -236 | [1] | -258 | [1] | -621 | [1] | -639 | [1] |
Administrative Billings from Services | -61 | [2] | -58 | [2] | -184 | [2] | -165 | [2] |
Total Expense Billings from Affiliates | ($345) | ($383) | ($1,459) | ($1,434) | ||||
[1] | 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. | |||||||
[2] | Services provides and bills administrative services to Power and PSE&G at cost. In addition, Power and PSE&G 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. |
RelatedParty_Transactions_Sche1
Related-Party Transactions (Schedule Of Related Party Transactions, Receivables) (Detail) (USD $) | 9 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 | ||
PSE And G [Member] | ||||
Receivable from (Payable to) Services | ($58) | [1] | ($65) | [1] |
Tax Receivable from (Payable to) PSEG | 263 | [2] | 256 | [2] |
Accounts Receivable-Affiliated Companies, net | 1 | 2 | ||
Accounts Receivable (Payable) - Affiliated Companies, net | 94 | -73 | ||
Working Capital Advances to Services | 33 | [3] | 33 | [3] |
Long-Term Accrued Taxes Receivable (Payable) | 48 | [2] | 32 | [2] |
Power [Member] | ||||
Receivables from PSE&G through BGS and BGSS Contracts | 87 | [4] | 238 | [4] |
Receivables from PSE&G Related to Gas Supply Hedges for BGSS | 28 | [4] | 27 | [4] |
Receivable from (Payable to) Services | -26 | [1] | -31 | [1] |
Tax Receivable from (Payable to) PSEG | -54 | [2] | 111 | [2] |
Receivable from (Payable to) PSEG | -1 | -5 | ||
Accounts Receivable-Affiliated Companies, net | 34 | 340 | ||
Short-Term Loan to Affiliate (Demand Note to PSEG) | 417 | [5] | 574 | [5] |
Working Capital Advances to Services | 17 | [3] | 17 | [3] |
Long-Term Accrued Taxes Receivable (Payable) | ($50) | [2] | ($50) | [2] |
[1] | Services provides and bills administrative services to Power and PSE&G at cost. In addition, Power and PSE&G 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. | |||
[2] | 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. | |||
[3] | Power and PSE&G have advanced working capital to Services. The amounts are included in Other Noncurrent Assets on Power’s and PSE&G’s Condensed Consolidated Balance Sheets. | |||
[4] | 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. | |||
[5] | 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. |
RelatedParty_Transactions_Sche2
Related-Party Transactions (Schedule Of Related Party Transactions, Payables) (Detail) (USD $) | 9 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | |||
PSE And G [Member] | PSE And G [Member] | Power's Share Of PSE&G's Liability [Member] | Power's Share Of PSE&G's Liability [Member] | ||||
SREC Price Limit | $300 | ||||||
Payable to Power through BGS and BGSS Contracts | -87,000,000 | [1] | -238,000,000 | [1] | |||
Payable to Power Related to Gas Supply Hedges for BGSS | -28,000,000 | [1] | -27,000,000 | [1] | |||
Payable to Power for SREC Liability | 0 | [2] | -7,000,000 | [2] | |||
Receivable from (Payable to) Services | -58,000,000 | [3] | -65,000,000 | [3] | |||
Tax Receivable from (Payable to) PSEG | 263,000,000 | [4] | 256,000,000 | [4] | |||
Receivable from PSEG | 3,000,000 | 6,000,000 | |||||
Receivable from Energy Holdings | 1,000,000 | 2,000,000 | |||||
Accounts Receivable (Payable) - Affiliated Companies, net | 94,000,000 | -73,000,000 | |||||
Working Capital Advances to Services | 33,000,000 | [5] | 33,000,000 | [5] | |||
Long-Term Accrued Taxes Payable | -48,000,000 | [4] | -32,000,000 | [4] | |||
Accrued Liability for Excess SREC costs | $17,000,000 | $9,000,000 | $7,000,000 | ||||
[1] | 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. | ||||||
[2] | Pursuant to a 2008 BPU Order, certain BGS suppliers, including Power, would be reimbursed for the cost they incurred above $300 per Solar Renewable Energy Certificate (SREC) or per Solar Alternative Compliance Payment (SACP) during the period June 1, 2008 through May 31, 2010 and such excess cost would be passed onto ratepayers. In accordance with a Stipulation of Settlement approved by the BPU in a December 2012 Order describing the mechanism for BGS suppliers to recover these costs, PSE&G, as a New Jersey EDC, estimated and accrued a total liability for the excess SREC cost expected to be recovered from ratepayers of $17 million, including approximately $7 million for Power’s share which was included in PSE&G’s Accounts Receivable (Payable)-Affiliated Companies, as of December 31, 2012. Under current accounting guidance, Power was unable to record the related intercompany receivable on its Condensed Consolidated Balance Sheet until the BPU issued an Order approving such payments. As a result, PSE&G’s liability to Power was not eliminated in consolidation and was included in Other Current Liabilities on PSEG’s Condensed Consolidated Balance Sheet as of December 31, 2012. In May 2013, the BPU issued an Order approving the BGS payments for these SRECs. This Order was not appealed and went into effect in July 2013. As a result, Power recorded its $9 million then outstanding receivable from PSE&G. In August 2013, PSE&G reimbursed Power and its other BGS suppliers for the excess SREC costs. | ||||||
[3] | Services provides and bills administrative services to Power and PSE&G at cost. In addition, Power and PSE&G 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. | ||||||
[4] | 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. | ||||||
[5] | Power and PSE&G have advanced working capital to Services. The amounts are included in Other Noncurrent Assets on Power’s and PSE&G’s Condensed Consolidated Balance Sheets. |
Guarantees_Of_Debt_Schedule_Of
Guarantees Of Debt (Schedule Of Financial Statements Of Guarantors) (Detail) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Operating Revenues | $2,554 | $2,402 | $7,650 | $7,375 | |
Operating Expenses | 1,842 | 1,808 | 5,716 | 5,565 | |
Operating Income (Loss) | 712 | 594 | 1,934 | 1,810 | |
Equity Earnings (Losses) of Subsidiaries | 4 | 7 | 9 | 9 | |
Other Income | 59 | 121 | 172 | 216 | |
Other Deductions | -12 | -26 | -54 | -61 | |
Other-Than-Temporary Impairments | -3 | -2 | -7 | -14 | |
Interest Expense | -100 | -106 | -303 | -310 | |
Income Tax Expense | -270 | -241 | -708 | -599 | |
Net Income | 390 | 347 | 1,043 | 1,051 | |
Net Cash Provided By (Used In) Operating Activities | 2,435 | 2,311 | |||
Net Cash Provided By (Used In) Investing Activities | -2,088 | -2,051 | |||
Net Cash Provided By (Used In) Financing Activities | -278 | -314 | |||
Current Assets | 3,741 | 3,741 | 3,869 | ||
Property, Plant and Equipment, net | 21,079 | 21,079 | 19,736 | ||
Noncurrent Assets | 7,790 | 7,790 | 8,120 | ||
Total Assets | 32,610 | 32,610 | 31,725 | ||
Current Liabilities | 3,235 | 3,235 | 3,777 | ||
Noncurrent Liabilities | 10,560 | 10,560 | 10,480 | ||
Long-Term Debt | 7,476 | 7,476 | 6,687 | ||
Member's Equity | 11,339 | 11,339 | 10,781 | ||
TOTAL LIABILITIES AND CAPITALIZATION | 32,610 | 32,610 | 31,725 | ||
Power [Member] | |||||
Operating Revenues | 1,169 | 1,038 | 3,806 | 3,584 | |
Operating Expenses | 800 | 771 | 2,847 | 2,680 | |
Operating Income (Loss) | 369 | 267 | 959 | 904 | |
Other Income | 45 | 104 | 127 | 171 | |
Other Deductions | -11 | -20 | -49 | -52 | |
Other-Than-Temporary Impairments | -3 | -2 | -7 | -14 | |
Interest Expense | -26 | -35 | -85 | -97 | |
Income Tax Expense | -153 | -133 | -383 | -374 | |
Net Income | 221 | 181 | 562 | 538 | |
Net Cash Provided By (Used In) Operating Activities | 1,284 | 1,172 | |||
Net Cash Provided By (Used In) Investing Activities | -290 | -506 | |||
Net Cash Provided By (Used In) Financing Activities | -992 | -673 | |||
Current Assets | 1,690 | 1,690 | 2,234 | ||
Property, Plant and Equipment, net | 7,062 | 7,062 | 7,018 | ||
Noncurrent Assets | 1,969 | 1,969 | 1,780 | ||
Total Assets | 10,721 | 10,721 | 11,032 | ||
Current Liabilities | 586 | 586 | 967 | ||
Noncurrent Liabilities | 2,735 | 2,735 | 2,586 | ||
Long-Term Debt | 2,041 | 2,041 | 2,040 | ||
Member's Equity | 5,359 | 5,359 | 5,439 | ||
TOTAL LIABILITIES AND CAPITALIZATION | 10,721 | 10,721 | 11,032 | ||
Power Senior Notes [Member] | Power Parent [Member] | |||||
Operating Revenues | 0 | 0 | 0 | 0 | |
Operating Expenses | 2 | -1 | 6 | -1 | |
Operating Income (Loss) | -2 | 1 | -6 | 1 | |
Equity Earnings (Losses) of Subsidiaries | 226 | 191 | 588 | 567 | |
Other Income | 8 | 11 | 27 | 35 | |
Other Deductions | 1 | 0 | -9 | -7 | |
Other-Than-Temporary Impairments | 0 | 0 | 0 | 0 | |
Interest Expense | -19 | -29 | -72 | -89 | |
Income Tax Expense | 7 | 7 | 34 | 31 | |
Net Income | 221 | 181 | 562 | 538 | |
Comprehensive Income (Loss) | 245 | 166 | 611 | 549 | |
Net Cash Provided By (Used In) Operating Activities | 425 | 409 | |||
Net Cash Provided By (Used In) Investing Activities | 569 | 257 | |||
Net Cash Provided By (Used In) Financing Activities | -990 | -666 | |||
Current Assets | 4,065 | 4,065 | 3,922 | ||
Property, Plant and Equipment, net | 81 | 81 | 80 | ||
Investment in Subsidiaries | 4,331 | 4,331 | 4,317 | ||
Noncurrent Assets | 197 | 197 | 201 | ||
Total Assets | 8,674 | 8,674 | 8,520 | ||
Current Liabilities | 752 | 752 | 482 | ||
Noncurrent Liabilities | 522 | 522 | 559 | ||
Long-Term Debt | 2,041 | 2,041 | 2,040 | ||
Member's Equity | 5,359 | 5,359 | 5,439 | ||
TOTAL LIABILITIES AND CAPITALIZATION | 8,674 | 8,674 | 8,520 | ||
Power Senior Notes [Member] | Power [Member] | |||||
Operating Revenues | 1,169 | 1,038 | 3,806 | 3,584 | |
Operating Expenses | 800 | 771 | 2,847 | 2,680 | |
Operating Income (Loss) | 369 | 267 | 959 | 904 | |
Equity Earnings (Losses) of Subsidiaries | 0 | 0 | 0 | 0 | |
Other Income | 45 | 104 | 127 | 171 | |
Other Deductions | -11 | -20 | -49 | -52 | |
Other-Than-Temporary Impairments | -3 | -2 | -7 | -14 | |
Interest Expense | -26 | -35 | -85 | -97 | |
Income Tax Expense | -153 | -133 | -383 | -374 | |
Net Income | 221 | 181 | 562 | 538 | |
Comprehensive Income (Loss) | 245 | 166 | 611 | 549 | |
Net Cash Provided By (Used In) Operating Activities | 1,284 | 1,172 | |||
Net Cash Provided By (Used In) Investing Activities | -290 | -506 | |||
Net Cash Provided By (Used In) Financing Activities | -992 | -673 | |||
Current Assets | 1,690 | 1,690 | 2,234 | ||
Property, Plant and Equipment, net | 7,062 | 7,062 | 7,018 | ||
Investment in Subsidiaries | 0 | 0 | 0 | ||
Noncurrent Assets | 1,969 | 1,969 | 1,780 | ||
Total Assets | 10,721 | 10,721 | 11,032 | ||
Current Liabilities | 586 | 586 | 967 | ||
Noncurrent Liabilities | 2,735 | 2,735 | 2,586 | ||
Long-Term Debt | 2,041 | 2,041 | 2,040 | ||
Member's Equity | 5,359 | 5,359 | 5,439 | ||
TOTAL LIABILITIES AND CAPITALIZATION | 10,721 | 10,721 | 11,032 | ||
Power Senior Notes [Member] | Guarantor Subsidiaries [Member] | |||||
Operating Revenues | 1,511 | 1,358 | 4,849 | 4,560 | |
Operating Expenses | 1,145 | 1,095 | 3,894 | 3,663 | |
Operating Income (Loss) | 366 | 263 | 955 | 897 | |
Equity Earnings (Losses) of Subsidiaries | -1 | 0 | -3 | -4 | |
Other Income | 47 | 106 | 130 | 176 | |
Other Deductions | -11 | -20 | -40 | -45 | |
Other-Than-Temporary Impairments | -3 | -2 | -7 | -14 | |
Interest Expense | -13 | -15 | -29 | -35 | |
Income Tax Expense | -160 | -142 | -419 | -409 | |
Net Income | 225 | 190 | 587 | 566 | |
Comprehensive Income (Loss) | 242 | 168 | 612 | 556 | |
Net Cash Provided By (Used In) Operating Activities | 1,360 | 1,259 | |||
Net Cash Provided By (Used In) Investing Activities | -869 | -897 | |||
Net Cash Provided By (Used In) Financing Activities | -492 | -368 | |||
Current Assets | 8,609 | 8,609 | 8,084 | ||
Property, Plant and Equipment, net | 6,059 | 6,059 | 5,988 | ||
Investment in Subsidiaries | 730 | 730 | 733 | ||
Noncurrent Assets | 1,842 | 1,842 | 1,660 | ||
Total Assets | 17,240 | 17,240 | 16,465 | ||
Current Liabilities | 10,778 | 10,778 | 10,187 | ||
Noncurrent Liabilities | 2,130 | 2,130 | 1,960 | ||
Long-Term Debt | 0 | 0 | 0 | ||
Member's Equity | 4,332 | 4,332 | 4,318 | ||
TOTAL LIABILITIES AND CAPITALIZATION | 17,240 | 17,240 | 16,465 | ||
Power Senior Notes [Member] | Consolidating Adjustments [Member] | |||||
Operating Revenues | -408 | -356 | -1,176 | -1,069 | |
Operating Expenses | -409 | -355 | -1,176 | -1,069 | |
Operating Income (Loss) | 1 | -1 | 0 | 0 | |
Equity Earnings (Losses) of Subsidiaries | -225 | -191 | -585 | -563 | |
Other Income | -10 | -13 | -30 | -40 | |
Other Deductions | -1 | 0 | 0 | 0 | |
Other-Than-Temporary Impairments | 0 | 0 | 0 | 0 | |
Interest Expense | 10 | 14 | 30 | 40 | |
Income Tax Expense | 0 | 1 | 0 | 1 | |
Net Income | -225 | -190 | -585 | -562 | |
Comprehensive Income (Loss) | -242 | -168 | -610 | -552 | |
Net Cash Provided By (Used In) Operating Activities | -506 | -493 | |||
Net Cash Provided By (Used In) Investing Activities | 11 | 158 | |||
Net Cash Provided By (Used In) Financing Activities | 494 | 335 | |||
Current Assets | -11,941 | -11,941 | -10,712 | ||
Property, Plant and Equipment, net | 0 | 0 | 0 | ||
Investment in Subsidiaries | -5,061 | -5,061 | -5,050 | ||
Noncurrent Assets | -126 | -126 | -141 | ||
Total Assets | -17,128 | -17,128 | -15,903 | ||
Current Liabilities | -11,941 | -11,941 | -10,712 | ||
Noncurrent Liabilities | -125 | -125 | -140 | ||
Long-Term Debt | 0 | 0 | 0 | ||
Member's Equity | -5,062 | -5,062 | -5,051 | ||
TOTAL LIABILITIES AND CAPITALIZATION | -17,128 | -17,128 | -15,903 | ||
Power Senior Notes [Member] | Non-Guarantor Subsidiaries [Member] | |||||
Operating Revenues | 66 | 36 | 133 | 93 | |
Operating Expenses | 62 | 32 | 123 | 87 | |
Operating Income (Loss) | 4 | 4 | 10 | 6 | |
Equity Earnings (Losses) of Subsidiaries | 0 | 0 | 0 | 0 | |
Other Income | 0 | 0 | 0 | 0 | |
Other Deductions | 0 | 0 | 0 | 0 | |
Other-Than-Temporary Impairments | 0 | 0 | 0 | 0 | |
Interest Expense | -4 | -5 | -14 | -13 | |
Income Tax Expense | 0 | 1 | 2 | 3 | |
Net Income | 0 | 0 | -2 | -4 | |
Comprehensive Income (Loss) | 0 | 0 | -2 | -4 | |
Net Cash Provided By (Used In) Operating Activities | 5 | -3 | |||
Net Cash Provided By (Used In) Investing Activities | -1 | -24 | |||
Net Cash Provided By (Used In) Financing Activities | -4 | 26 | |||
Current Assets | 957 | 957 | 940 | ||
Property, Plant and Equipment, net | 922 | 922 | 950 | ||
Investment in Subsidiaries | 0 | 0 | 0 | ||
Noncurrent Assets | 56 | 56 | 60 | ||
Total Assets | 1,935 | 1,935 | 1,950 | ||
Current Liabilities | 997 | 997 | 1,010 | ||
Noncurrent Liabilities | 208 | 208 | 207 | ||
Long-Term Debt | 0 | 0 | 0 | ||
Member's Equity | 730 | 730 | 733 | ||
TOTAL LIABILITIES AND CAPITALIZATION | $1,935 | $1,935 | $1,950 |