PUBLIC SERVICE ENTERPRISE GROUP INC, 10-Q filed on 5/5/2020
Quarterly Report
v3.20.1
Cover - shares
 3 Months Ended
Mar. 31, 2020
Apr. 21, 2020
Entity Information [Line Items]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Mar. 31, 2020  
Document Transition Report false  
Entity File Number 001-09120  
Entity Registrant Name Public Service Enterprise Group Incorporated  
Entity Incorporation, State or Country Code NJ  
Entity Tax Identification Number 22-2625848  
Entity Address, Address Line One 80 Park Plaza  
Entity Address, City or Town Newark,  
Entity Address, State or Province NJ  
Entity Address, Postal Zip Code 07102  
City Area Code 973  
Local Phone Number 430-7000  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   505,625,328
Amendment Flag false  
Document Fiscal Year Focus 2020  
Document Fiscal Period Focus Q1  
Current Fiscal Year End Date --12-31  
Entity Central Index Key 0000788784  
Common Stock without par value [Member]    
Entity Information [Line Items]    
Title of 12(b) Security   Common Stock without par value  
Trading Symbol PEG  
Security Exchange Name NYSE  
Public Service Electric and Gas Company [Member]    
Entity Information [Line Items]    
Entity File Number 001-00973  
Entity Registrant Name Public Service Electric and Gas Company  
Entity Incorporation, State or Country Code NJ  
Entity Tax Identification Number 22-1212800  
Entity Address, Address Line One 80 Park Plaza  
Entity Address, City or Town Newark,  
Entity Address, State or Province NJ  
Entity Address, Postal Zip Code 07102  
City Area Code 973  
Local Phone Number 430-7000  
Entity Filer Category Non-accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Common Stock, Shares Outstanding   132,450,344
Amendment Flag false  
Document Fiscal Year Focus 2020  
Document Fiscal Period Focus Q1  
Current Fiscal Year End Date --12-31  
Entity Central Index Key 0000081033  
Public Service Electric and Gas Company [Member] | First and Refunding Mortgage Bonds Nine Point Two Five Percent Series CC, Due Two Thousand Twenty One [Member]    
Entity Information [Line Items]    
Title of 12(b) Security   9.25% First and Refunding Mortgage Bonds, Series CC, due 2021  
Trading Symbol PEG21  
Security Exchange Name NYSE  
Public Service Electric and Gas Company [Member] | First and Refunding Mortgage Bonds Eight Percent, Due Two Thousand Thirty Seven [Member]    
Entity Information [Line Items]    
Title of 12(b) Security   8.00% First and Refunding Mortgage Bonds, due 2037  
Trading Symbol PEG37D  
Security Exchange Name NYSE  
Public Service Electric and Gas Company [Member] | First and Refunding Mortgage Bonds Five Percent, Due Two Thousand Thirty Seven [Member]    
Entity Information [Line Items]    
Title of 12(b) Security   5.00% First and Refunding Mortgage Bonds, due 2037  
Trading Symbol PEG37J  
Security Exchange Name NYSE  
PSEG Power [Member]    
Entity Information [Line Items]    
Entity File Number 001-34232  
Entity Registrant Name PSEG Power LLC  
Entity Incorporation, State or Country Code DE  
Entity Tax Identification Number 22-3663480  
Entity Address, Address Line One 80 Park Plaza  
Entity Address, City or Town Newark,  
Entity Address, State or Province NJ  
Entity Address, Postal Zip Code 07102  
City Area Code 973  
Local Phone Number 430-7000  
Entity Filer Category Non-accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Amendment Flag false  
Document Fiscal Year Focus 2020  
Document Fiscal Period Focus Q1  
Current Fiscal Year End Date --12-31  
Entity Central Index Key 0001158659  
PSEG Power [Member] | Senior Notes Eight Point Six Two Five Percent due Two Thousand Thirty One [Member]    
Entity Information [Line Items]    
Title of 12(b) Security   8.625% Senior Notes, due 2031  
Trading Symbol PEG31  
Security Exchange Name NYSE  
v3.20.1
Condensed Consolidated Statements Of Operations - USD ($)
shares in Millions, $ in Millions
 3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Operating Revenues $ 2,781 $ 2,980
Operating Expenses [Abstract]    
Energy Costs 906 1,124
Operation and Maintenance 754 756
Depreciation and Amortization 324 314
Total Operating Expenses 1,984 2,194
OPERATING INCOME 797 786
Income from Equity Method Investments 3 2
Net Gains (Losses) on Trust Investments (221) 128
Other Income (Deductions) 4 33
Non-Operating Pension and OPEB Credits (Costs) 62 33
Interest Expense (153) (133)
Income Before Income Taxes 492 849
Income Tax Benefit (Expense) (44) (149)
Net Income $ 448 $ 700
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:    
BASIC (shares) 504 504
DILUTED (shares) 507 507
EARNINGS PER SHARE:    
BASIC (dollars per share) $ 0.89 $ 1.39
DILUTED (dollars per share) $ 0.88 $ 1.38
Public Service Electric and Gas Company [Member]    
Operating Revenues $ 1,883 $ 2,032
Operating Expenses [Abstract]    
Energy Costs 708 947
Operation and Maintenance 386 408
Depreciation and Amortization 222 212
Total Operating Expenses 1,316 1,567
OPERATING INCOME 567 465
Net Gains (Losses) on Trust Investments 0 1
Other Income (Deductions) 27 19
Non-Operating Pension and OPEB Credits (Costs) 51 30
Interest Expense (96) (87)
Income Before Income Taxes 549 428
Income Tax Benefit (Expense) (109) (25)
Net Income 440 403
PSEG Power [Member]    
Operating Revenues 1,220 1,416
Operating Expenses [Abstract]    
Energy Costs 676 786
Operation and Maintenance 241 235
Depreciation and Amortization 94 94
Total Operating Expenses 1,011 1,115
OPERATING INCOME 209 301
Income from Equity Method Investments 3 2
Net Gains (Losses) on Trust Investments (220) 126
Other Income (Deductions) (23) 13
Non-Operating Pension and OPEB Credits (Costs) 8 3
Interest Expense (34) (25)
Income Before Income Taxes (57) 420
Income Tax Benefit (Expense) 70 (124)
Net Income $ 13 $ 296
v3.20.1
Condensed Consolidated Statements Of Comprehensive Income - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Net Income $ 448 $ 700
Other Comprehensive Income (Loss), net of tax    
Unrealized Gains (Losses) on Available-for-Sale Securities, net of tax (expense) benefit 8 21
Unrealized Gains (Losses) on Cash Flow Hedges, net of tax (expense) benefit (3) (4)
Pension/Other Postretirement Benefit (OPEB) adjustment, net of tax (expense) benefit 3 0
Other Comprehensive Income (Loss), net of tax 8 17
COMPREHENSIVE INCOME 456 717
Public Service Electric and Gas Company [Member]    
Net Income 440 403
Other Comprehensive Income (Loss), net of tax    
Unrealized Gains (Losses) on Available-for-Sale Securities, net of tax (expense) benefit 0 1
Other Comprehensive Income (Loss), net of tax 0 1
COMPREHENSIVE INCOME 440 404
PSEG Power [Member]    
Net Income 13 296
Other Comprehensive Income (Loss), net of tax    
Unrealized Gains (Losses) on Available-for-Sale Securities, net of tax (expense) benefit 7 16
Pension/Other Postretirement Benefit (OPEB) adjustment, net of tax (expense) benefit 2 0
Other Comprehensive Income (Loss), net of tax 9 16
COMPREHENSIVE INCOME $ 22 $ 312
v3.20.1
Condensed Consolidated Statements Of Comprehensive Income (Parenthetical) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Unrealized Gains (Losses) on Available-for-Sale Securities, tax $ (6) $ (13)
Unrealized Gains (Losses) on Cash Flow Hedges, Tax 1 1
Pension/OPEB adjustment, tax (1) (4)
Public Service Electric and Gas Company [Member]    
Unrealized Gains (Losses) on Available-for-Sale Securities, tax 0 0
PSEG Power [Member]    
Unrealized Gains (Losses) on Available-for-Sale Securities, tax (4) (11)
Pension/OPEB adjustment, tax $ (1) $ (4)
v3.20.1
Condensed Consolidated Balance Sheets - USD ($)
$ in Millions
Mar. 31, 2020
Dec. 31, 2019
CURRENT ASSETS    
Cash and Cash Equivalents $ 799 $ 147
Accounts Receivable, net of allowance 1,265 1,313
Tax Receivable 2 21
Unbilled Revenues, net of allowance 185 239
Fuel 181 310
Materials and Supplies, net 595 587
Prepayments 124 79
Derivative Contracts 169 113
Regulatory Assets 337 351
Assets Held-for-sale 28 30
Other 42 41
Total Current Assets 3,727 3,231
PROPERTY, PLANT AND EQUIPMENT 46,577 45,944
Less: Accumulated Depreciation and Amortization (10,372) (10,100)
Net Property, Plant and Equipment 36,205 35,844
NONCURRENT ASSETS    
Regulatory Assets 3,634 3,677
Operating Lease, Right-of-Use Asset 275 282
Long-Term Investments 786 812
Nuclear Decommissioning Trust (NDT) Fund 2,027 2,216
Long-Term Tax Receivable 150 150
Long-Term Receivable of Variable Interest Entities (VIEs) 825 813
Rabbi Trust Fund 244 246
Other Intangibles 165 149
Derivative Contracts 69 24
Other 258 286
Total Noncurrent Assets 8,433 8,655
Total Assets 48,365 47,730
CURRENT LIABILITIES    
Long-Term Debt Due Within One Year 1,665 1,365
Commercial Paper and Loans 1,062 1,115
Accounts Payable 1,172 1,358
Derivative Contracts 40 36
Accrued Interest 176 116
Accrued Taxes 113 41
Clean Energy Program 85 143
Obligation to Return Cash Collateral 118 119
Regulatory Liabilities 174 234
Other 555 520
Total Current Liabilities 5,160 5,047
NONCURRENT LIABILITIES    
Deferred Income Taxes and Investment Tax Credits (ITC) 6,321 6,256
Regulatory Liabilities 2,955 3,002
Operating Leases 266 273
Asset Retirement Obligations 1,172 1,087
OPEB Costs 750 734
OPEB Costs of Servco 634 626
Accrued Pension Costs 922 952
Accrued Pension Costs of Servco 170 171
Environmental Costs 338 349
Derivative Contracts 3 1
Long-Term Accrued Taxes 180 182
Other 205 218
Total Noncurrent Liabilities 13,916 13,851
COMMITMENTS AND CONTINGENT LIABILITIES
LONG-TERM DEBT    
Total Long-Term Debt 14,040 13,743
STOCKHOLDER'S EQUITY    
Common Stock, Value, Issued 4,994 5,003
Treasury Stock, at cost (868) (831)
Retained Earnings 11,604 11,406
Accumulated Other Comprehensive Income (Loss) (481) (489)
Total Stockholder's Equity 15,249 15,089
Total Capitalization 29,289 28,832
TOTAL LIABILITIES AND CAPITALIZATION 48,365 47,730
Public Service Electric and Gas Company [Member]    
CURRENT ASSETS    
Cash and Cash Equivalents 83 21
Accounts Receivable, net of allowance 924 901
Accounts Receivable-Affiliated Companies 0 1
Unbilled Revenues, net of allowance 185 239
Materials and Supplies, net 213 213
Prepayments 23 35
Regulatory Assets 337 351
Other 34 28
Total Current Assets 1,799 1,789
PROPERTY, PLANT AND EQUIPMENT 34,419 33,900
Less: Accumulated Depreciation and Amortization (6,748) (6,623)
Net Property, Plant and Equipment 27,671 27,277
NONCURRENT ASSETS    
Regulatory Assets 3,634 3,677
Operating Lease, Right-of-Use Asset 97 98
Long-Term Investments 245 248
Rabbi Trust Fund 47 48
Other 134 129
Total Noncurrent Assets 4,157 4,200
Total Assets 33,627 33,266
CURRENT LIABILITIES    
Long-Term Debt Due Within One Year 559 259
Commercial Paper and Loans 0 362
Accounts Payable 518 639
Accounts Payable-Affiliated Companies 403 390
Accrued Interest 111 91
Clean Energy Program 85 143
Obligation to Return Cash Collateral 118 119
Regulatory Liabilities 174 234
Other 469 436
Total Current Liabilities 2,437 2,673
NONCURRENT LIABILITIES    
Deferred Income Taxes and Investment Tax Credits (ITC) 4,286 4,189
Regulatory Liabilities 2,955 3,002
Operating Leases 86 87
Asset Retirement Obligations 305 303
OPEB Costs 509 495
Accrued Pension Costs 481 501
Environmental Costs 288 294
Long-Term Accrued Taxes 114 115
Other 136 136
Total Noncurrent Liabilities 9,160 9,122
COMMITMENTS AND CONTINGENT LIABILITIES
LONG-TERM DEBT    
Total Long-Term Debt 9,864 9,568
STOCKHOLDER'S EQUITY    
Common Stock, Value, Issued 892 892
Contributed Capital 1,095 1,095
Basis Adjustment 986 986
Retained Earnings 9,191 8,928
Accumulated Other Comprehensive Income (Loss) 2 2
Total Stockholder's Equity 12,166 11,903
Total Capitalization 22,030 21,471
TOTAL LIABILITIES AND CAPITALIZATION 33,627 33,266
PSEG Power [Member]    
CURRENT ASSETS    
Cash and Cash Equivalents 14 21
Accounts Receivable, net of allowance 284 309
Accounts Receivable-Affiliated Companies 359 408
Short-Term Loan to Affiliate [1] 514 149
Fuel 181 310
Materials and Supplies, net 379 372
Prepayments 16 11
Derivative Contracts [2] 169 113
Assets Held-for-sale 28 28
Other 3 5
Total Current Assets 1,947 1,726
PROPERTY, PLANT AND EQUIPMENT 11,820 11,699
Less: Accumulated Depreciation and Amortization (3,413) (3,273)
Net Property, Plant and Equipment 8,407 8,426
NONCURRENT ASSETS    
Operating Lease, Right-of-Use Asset 69 71
Long-Term Investments 68 66
Nuclear Decommissioning Trust (NDT) Fund 2,027 2,216
Rabbi Trust Fund 61 62
Other Intangibles 165 149
Derivative Contracts [2] 69 24
Other 34 65
Total Noncurrent Assets 2,493 2,653
Total Assets 12,847 12,805
CURRENT LIABILITIES    
Long-Term Debt Due Within One Year 406 406
Accounts Payable 470 505
Accounts Payable-Affiliated Companies 24 5
Derivative Contracts [2] 30 31
Accrued Interest 49 21
Other 92 91
Total Current Liabilities 1,071 1,059
NONCURRENT LIABILITIES    
Deferred Income Taxes and Investment Tax Credits (ITC) 1,829 1,876
Operating Leases 60 62
Asset Retirement Obligations 864 781
OPEB Costs 193 192
Accrued Pension Costs 277 284
Derivative Contracts [2] 3 1
Long-Term Accrued Taxes 113 115
Other 90 111
Total Noncurrent Liabilities 3,429 3,422
COMMITMENTS AND CONTINGENT LIABILITIES
LONG-TERM DEBT    
Total Long-Term Debt 2,435 2,434
STOCKHOLDER'S EQUITY    
Contributed Capital 2,214 2,214
Basis Adjustment (986) (986)
Retained Earnings 5,076 5,063
Accumulated Other Comprehensive Income (Loss) (392) (401)
Total Stockholder's Equity 5,912 5,890
TOTAL LIABILITIES AND CAPITALIZATION $ 12,847 $ 12,805
[1]
PSEG 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.
[2] Substantially all of PSEG 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 March 31, 2020 and December 31, 2019.
v3.20.1
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($)
shares in Millions, $ in Millions
Mar. 31, 2020
Dec. 31, 2019
Accounts Receivable, allowance $ 77 $ 60
Unbilled Revenues, allowance $ 3 $ 0
Common Stock, issued 534 534
Common Stock, authorized 1,000 1,000
Treasury Stock, Shares 30 30
Public Service Electric and Gas Company [Member]    
Accounts Receivable, allowance $ 77 $ 60
Unbilled Revenues, allowance $ 3 $ 0
Common Stock, issued 132 132
Common Stock, outstanding 132 132
Common Stock, authorized 150 150
v3.20.1
Condensed Consolidated Statements Of Cash Flows - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
CASH FLOWS FROM OPERATING ACTIVITIES    
Net Income $ 448 $ 700
Adjustments to Reconcile Net Income to Net Cash Flows from Operating Activities:    
Depreciation and Amortization 324 314
Amortization of Nuclear Fuel 47 47
Emission Allowances and Renewable Energy Credit Compliance Accrual 33 24
Provision for Deferred Income Taxes and ITC 18 102
Non-Cash Employee Benefit Plan (Credits) Costs (26) (3)
Leveraged Lease (Income) Loss, Adjusted for Rents Received and Deferred Taxes 18 (1)
Net Realized and Unrealized (Gains) Losses on Energy Contracts and Other Derivatives (106) (109)
Cost of Removal (24) (30)
Net Change in Regulatory Assets and Liabilities (80) 69
Net Realized (Gains) Losses and (Income) Expense from NDT Fund 209 (137)
Net Change in Certain Current Assets and Liabilities:    
Tax Receivable 16 77
Accrued Taxes 71 26
Margin Deposit 55 190
Other Current Assets and Liabilities 120 (67)
Employee Benefit Plan Funding and Related Payments 10 (14)
Other 20 30
Net Cash Provided By (Used In) Operating Activities 1,153 1,218
CASH FLOWS FROM INVESTING ACTIVITIES    
Additions to Property, Plant and Equipment (720) (795)
Purchase of Emissions Allowances and RECs (29) (21)
Proceeds from Sale of Available-for-Sale Securities 609 497
Investments in Available-for-Sale Securities (619) (507)
Other 35 10
Net Cash Provided By (Used In) Investing Activities (724) (816)
CASH FLOWS FROM FINANCING ACTIVITIES    
Net Change in Commercial Paper and Loans (353) 135
Proceeds from Short-Term Loan 300 0
Proceeds from Issuance of Other Long-term Debt 600 0
Redemption of Long-term Debt 0 (350)
Cash Dividends Paid on Common Stock (248) (238)
Other (62) (52)
Net Cash Provided By (Used In) Financing Activities 237 (505)
Net Increase (Decrease) In Cash, Cash Equivalents and Restricted Cash 666 (103)
Cash, Cash Equivalents and Restricted Cash at Beginning of Period 176 199
Cash, Cash Equivalents and Restricted Cash at End of Period 842 96
Supplemental Disclosure of Cash Flow Information:    
Income Taxes Paid (Received) (14) (76)
Interest Paid, Net of Amounts Capitalized 91 91
Accrued Property, Plant and Equipment Expenditures 378 456
Public Service Electric and Gas Company [Member]    
CASH FLOWS FROM OPERATING ACTIVITIES    
Net Income 440 403
Adjustments to Reconcile Net Income to Net Cash Flows from Operating Activities:    
Depreciation and Amortization 222 212
Provision for Deferred Income Taxes and ITC 53 (12)
Non-Cash Employee Benefit Plan (Credits) Costs (26) (9)
Cost of Removal (24) (30)
Net Change in Regulatory Assets and Liabilities (80) 69
Net Change in Certain Current Assets and Liabilities:    
Accounts Receivable and Unbilled Revenues 20 (119)
Fuel, Materials and Supplies 0 (5)
Prepayments 12 3
Accounts Payable (45) (108)
Accounts Receivable/Payable-Affiliated Companies, net 14 87
Other Current Assets and Liabilities 48 35
Employee Benefit Plan Funding and Related Payments 12 (10)
Other (11) 4
Net Cash Provided By (Used In) Operating Activities 635 520
CASH FLOWS FROM INVESTING ACTIVITIES    
Additions to Property, Plant and Equipment (620) (625)
Proceeds from Sale of Available-for-Sale Securities 10 10
Investments in Available-for-Sale Securities (10) (9)
Solar Loan Investments 2 (5)
Other 2 2
Net Cash Provided By (Used In) Investing Activities (616) (627)
CASH FLOWS FROM FINANCING ACTIVITIES    
Net Change in Commercial Paper and Loans (362) 92
Proceeds from Issuance of Other Long-term Debt 600 0
Cash Dividends Paid on Common Stock (175) 0
Other (6) 0
Net Cash Provided By (Used In) Financing Activities 57 92
Net Increase (Decrease) In Cash, Cash Equivalents and Restricted Cash 76 (15)
Cash, Cash Equivalents and Restricted Cash at Beginning of Period 50 61
Cash, Cash Equivalents and Restricted Cash at End of Period 126 46
Supplemental Disclosure of Cash Flow Information:    
Income Taxes Paid (Received) 11 (94)
Interest Paid, Net of Amounts Capitalized 74 73
Accrued Property, Plant and Equipment Expenditures 262 273
PSEG Power [Member]    
CASH FLOWS FROM OPERATING ACTIVITIES    
Net Income 13 296
Adjustments to Reconcile Net Income to Net Cash Flows from Operating Activities:    
Depreciation and Amortization 94 94
Amortization of Nuclear Fuel 47 47
Emission Allowances and Renewable Energy Credit Compliance Accrual 33 24
Provision for Deferred Income Taxes and ITC (52) 121
Non-Cash Employee Benefit Plan (Credits) Costs 0 4
Interest Accretion on Asset Retirement Obligations 10 10
Net Realized and Unrealized (Gains) Losses on Energy Contracts and Other Derivatives (106) (109)
Net Realized (Gains) Losses and (Income) Expense from NDT Fund 209 (137)
Net Change in Certain Current Assets and Liabilities:    
Fuel, Materials and Supplies 102 189
Margin Deposit 55 190
Accounts Receivable 20 34
Accounts Payable (44) (57)
Accounts Receivable/Payable-Affiliated Companies, net 68 (22)
Other Current Assets and Liabilities 21 37
Employee Benefit Plan Funding and Related Payments (1) (3)
Other 15 8
Net Cash Provided By (Used In) Operating Activities 484 726
CASH FLOWS FROM INVESTING ACTIVITIES    
Additions to Property, Plant and Equipment (97) (167)
Purchase of Emissions Allowances and RECs (29) (21)
Proceeds from Sale of Available-for-Sale Securities 569 463
Investments in Available-for-Sale Securities (579) (475)
Short-Term Loan-Affiliated Company 365 87
Other 11 11
Net Cash Provided By (Used In) Investing Activities (490) (276)
CASH FLOWS FROM FINANCING ACTIVITIES    
Cash Dividends Paid on Common Stock 0 (250)
Short-Term Loan-Affiliated Company 0 (193)
Other (1) (1)
Net Cash Provided By (Used In) Financing Activities (1) (444)
Net Increase (Decrease) In Cash, Cash Equivalents and Restricted Cash (7) 6
Cash, Cash Equivalents and Restricted Cash at Beginning of Period 21 22
Cash, Cash Equivalents and Restricted Cash at End of Period 14 28
Supplemental Disclosure of Cash Flow Information:    
Income Taxes Paid (Received) (16) 11
Interest Paid, Net of Amounts Capitalized 7 6
Accrued Property, Plant and Equipment Expenditures $ 116 $ 183
v3.20.1
Condensed Consolidated Statements of Stockholders Equity Condensed Consolidated Statements of Stockholders Equity - USD ($)
shares in Millions, $ in Millions
Total
Common Stock [Member]
Treasury Stock [Member]
Retained Earnings [Member]
AOCI Attributable to Parent [Member]
Public Service Electric and Gas Company [Member]
Public Service Electric and Gas Company [Member]
Common Stock [Member]
Public Service Electric and Gas Company [Member]
Retained Earnings [Member]
Public Service Electric and Gas Company [Member]
AOCI Attributable to Parent [Member]
Public Service Electric and Gas Company [Member]
Contributed Capital [Member]
Public Service Electric and Gas Company [Member]
Basis Adjustment [Member]
PSEG Power [Member]
PSEG Power [Member]
Retained Earnings [Member]
PSEG Power [Member]
AOCI Attributable to Parent [Member]
PSEG Power [Member]
Contributed Capital [Member]
PSEG Power [Member]
Basis Adjustment [Member]
Shares, Outstanding   534 (30)                          
Cumulative Effect Adjustment       $ 81 $ (81)               $ 69 $ (69)    
Total Stockholder's Equity $ 14,377 $ 4,980 $ (808) 10,582 (377) $ 10,900 $ 892 $ 7,928 $ (1) $ 1,095 $ 986 $ 5,960 5,051 (319) $ 2,214 $ (986)
Net Income 700     700   403   403       296 296      
Other Comprehensive Income (Loss), Net of Tax 17       17 1     1     16   16    
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest 717         404           312        
Dividends, Common Stock, Cash (238)     (238) 0             (250) (250)      
Stockholders' Equity, Other (42) $ (11) $ (31) 0 0                      
Stockholders' Equity, Other Shares   0 0                          
Shares, Outstanding   534 (30)                          
Total Stockholder's Equity 14,814 $ 4,969 $ (839) 11,125 (441) 11,304 892 8,331 0 1,095 986 6,022 5,166 (372) 2,214 (986)
Shares, Outstanding   534 (30)                          
Cumulative Effect Adjustment (2)     (2)   (2)   (2)                
Total Stockholder's Equity 15,089 $ 5,003 $ (831) 11,406 (489) 11,903 892 8,928 2 1,095 986 5,890 5,063 (401) 2,214 (986)
Net Income 448     448   440   440       13 13      
Other Comprehensive Income (Loss), Net of Tax 8       8 0     0     9   9    
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest 456         440           22        
Dividends, Common Stock, Cash (248)     (248) 0 (175)   (175)                
Stockholders' Equity, Other (46) $ (9) $ (37) 0 0                      
Stockholders' Equity, Other Shares   0 0                          
Shares, Outstanding   534 (30)                          
Total Stockholder's Equity $ 15,249 $ 4,994 $ (868) $ 11,604 $ (481) $ 12,166 $ 892 $ 9,191 $ 2 $ 1,095 $ 986 $ 5,912 $ 5,076 $ (392) $ 2,214 $ (986)
v3.20.1
Condensed Consolidated Statements of Stockholders Equity Condensed Consolidated Statements of Stockholders Equity (Parenthetical) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Other Comprehensive Income (Loss), Tax $ (6) $ (16)
Common Stock, Dividends, Per Share, Cash Paid $ 0.49 $ 0.47
Public Service Electric and Gas Company [Member]    
Other Comprehensive Income (Loss), Tax $ 0 $ 0
PSEG Power [Member]    
Other Comprehensive Income (Loss), Tax $ (5) $ (15)
v3.20.1
Organization and Basis of Presentation
 3 Months Ended
Mar. 31, 2020
Organization and Basis of Presentation Organization, Basis of Presentation and Significant Accounting Policies
Organization
Public Service Enterprise Group Incorporated (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 principal direct wholly owned subsidiaries are:
•
Public Service Electric and Gas Company (PSE&G)—which is a public utility engaged principally in the transmission of electricity and distribution of electricity and natural gas in certain areas of New Jersey. PSE&G is subject to regulation by the New Jersey Board of Public Utilities (BPU) and the Federal Energy Regulatory Commission (FERC). PSE&G also invests in regulated solar generation projects and energy efficiency and related programs in New Jersey, which are regulated by the BPU.
•
PSEG Power LLC (PSEG Power)—which is a multi-regional energy supply company that integrates the operations of its merchant nuclear and fossil generating assets with its power marketing businesses and fuel supply functions through competitive energy sales in well-developed energy markets primarily in the Northeast and Mid-Atlantic United States through its principal direct wholly owned subsidiaries. In addition, PSEG Power owns and operates solar generation in various states. PSEG Power’s subsidiaries are subject to regulation by FERC, the Nuclear Regulatory Commission (NRC), the Environmental Protection Agency (EPA) and the states in which they operate.
PSEG’s other direct wholly owned subsidiaries are: PSEG Long Island LLC (PSEG LI), which operates the Long Island Power Authority’s (LIPA) electric transmission and distribution (T&D) system under an Operations Services Agreement (OSA); PSEG Energy Holdings L.L.C. (Energy Holdings), which primarily has investments in leveraged leases; and PSEG Services Corporation (Services), which provides certain 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 guidance 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, 2019.
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. 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, 2019.
Significant Accounting Policies
Cash, Cash Equivalents and Restricted Cash
The following provides a reconciliation of cash, cash equivalents and restricted cash reported within the Condensed Consolidated Balance Sheets that sum to the total of the same such amounts for the beginning (December 31, 2019) and ending periods shown in the Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2020. Restricted cash consists primarily of deposits received related to various construction projects at PSE&G.
 
 
 
 
 
 
 
 
 
 
 
 
PSE&G
 
PSEG Power
 
Other (A)
 
Consolidated
 
 
 
Millions
 
 
As of December 31, 2019
 
 
 
 
 
 
 
 
 
Cash and Cash Equivalents
$
21

 
$
21

 
$
105

 
$
147

 
 
Restricted Cash in Other Current Assets
11

 
—

 
—

 
11

 
 
Restricted Cash in Other Noncurrent Assets
18

 
—

 
—

 
18

 
 
Cash, Cash Equivalents and Restricted Cash
$
50

 
$
21

 
$
105

 
$
176

 
 
As of March 31, 2020
 
 
 
 
 
 
 
 
 
Cash and Cash Equivalents
$
83

 
$
14

 
$
702

 
$
799

 
 
Restricted Cash in Other Current Assets
22

 
—

 
—

 
22

 
 
Restricted Cash in Other Noncurrent Assets
21

 
—

 
—

 
21

 
 
Cash, Cash Equivalents and Restricted Cash
$
126

 
$
14

 
$
702

 
$
842

 
 
 
 
 
 
 
 
 
 
 
(A)
Includes amounts applicable to PSEG (parent company), Energy Holdings and Services.
Fuel Inventory
Fuel inventory at PSEG Power is valued at the lower of average cost or market and includes stored natural gas, coal, fuel oil and propane used to generate power and to satisfy obligations under PSEG Power’s gas supply contracts with PSE&G. The costs of fuel, including initial transportation costs, are included in inventory when purchased and charged to Energy Costs when used or sold.
In the first quarter of 2020, PSEG Power recorded a $20 million lower of cost or market (LOCOM) adjustment to its fuel oil inventory due to the significant decline in market pricing. Further downward adjustments may be required if the market price of oil continues to decline. However, PSEG Power may reverse the LOCOM adjustment in future quarters, limited to the adjustment recorded in the three months ended March 31, 2020, if the oil market recovers within the 2020 calendar year.
Property, Plant and Equipment
PSEG Power capitalizes costs, including those related to its jointly-owned facilities that increase the capacity, improve or extend the life of an existing asset; represent a newly acquired or constructed asset; or represent the replacement of a retired asset. The cost of maintenance, repair and replacement of minor items of property is charged to appropriate expense accounts as incurred. Environmental costs are capitalized if the costs mitigate or prevent future environmental contamination or if the costs improve existing assets’ environmental safety or efficiency. All other environmental expenditures are expensed as incurred. PSEG Power also capitalizes spare parts that meet specific criteria. Capitalized spares are depreciated over the remaining lives of their associated assets.
In March 2020, the NRC approved Peach Bottom’s second license extension for both units. Concurrent with the license extensions, PSEG Power has extended the useful life of the asset to match the 80-year life expectation and reassessed the related Asset Retirement Cost (ARC) and Asset Retirement Obligation (ARO) assumptions. This resulted in an increase to the ARC asset and ARO liability of $74 million, primarily due to lower discount rates offset by a longer discounting period as a result of the Peach Bottom units’ longer expected useful life.
Public Service Electric and Gas Company [Member]  
Organization and Basis of Presentation Organization, Basis of Presentation and Significant Accounting Policies
Organization
Public Service Enterprise Group Incorporated (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 principal direct wholly owned subsidiaries are:
•
Public Service Electric and Gas Company (PSE&G)—which is a public utility engaged principally in the transmission of electricity and distribution of electricity and natural gas in certain areas of New Jersey. PSE&G is subject to regulation by the New Jersey Board of Public Utilities (BPU) and the Federal Energy Regulatory Commission (FERC). PSE&G also invests in regulated solar generation projects and energy efficiency and related programs in New Jersey, which are regulated by the BPU.
•
PSEG Power LLC (PSEG Power)—which is a multi-regional energy supply company that integrates the operations of its merchant nuclear and fossil generating assets with its power marketing businesses and fuel supply functions through competitive energy sales in well-developed energy markets primarily in the Northeast and Mid-Atlantic United States through its principal direct wholly owned subsidiaries. In addition, PSEG Power owns and operates solar generation in various states. PSEG Power’s subsidiaries are subject to regulation by FERC, the Nuclear Regulatory Commission (NRC), the Environmental Protection Agency (EPA) and the states in which they operate.
PSEG’s other direct wholly owned subsidiaries are: PSEG Long Island LLC (PSEG LI), which operates the Long Island Power Authority’s (LIPA) electric transmission and distribution (T&D) system under an Operations Services Agreement (OSA); PSEG Energy Holdings L.L.C. (Energy Holdings), which primarily has investments in leveraged leases; and PSEG Services Corporation (Services), which provides certain 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 guidance 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, 2019.
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. 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, 2019.
Significant Accounting Policies
Cash, Cash Equivalents and Restricted Cash
The following provides a reconciliation of cash, cash equivalents and restricted cash reported within the Condensed Consolidated Balance Sheets that sum to the total of the same such amounts for the beginning (December 31, 2019) and ending periods shown in the Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2020. Restricted cash consists primarily of deposits received related to various construction projects at PSE&G.
 
 
 
 
 
 
 
 
 
 
 
 
PSE&G
 
PSEG Power
 
Other (A)
 
Consolidated
 
 
 
Millions
 
 
As of December 31, 2019
 
 
 
 
 
 
 
 
 
Cash and Cash Equivalents
$
21

 
$
21

 
$
105

 
$
147

 
 
Restricted Cash in Other Current Assets
11

 
—

 
—

 
11

 
 
Restricted Cash in Other Noncurrent Assets
18

 
—

 
—

 
18

 
 
Cash, Cash Equivalents and Restricted Cash
$
50

 
$
21

 
$
105

 
$
176

 
 
As of March 31, 2020
 
 
 
 
 
 
 
 
 
Cash and Cash Equivalents
$
83

 
$
14

 
$
702

 
$
799

 
 
Restricted Cash in Other Current Assets
22

 
—

 
—

 
22

 
 
Restricted Cash in Other Noncurrent Assets
21

 
—

 
—

 
21

 
 
Cash, Cash Equivalents and Restricted Cash
$
126

 
$
14

 
$
702

 
$
842

 
 
 
 
 
 
 
 
 
 
 
(A)
Includes amounts applicable to PSEG (parent company), Energy Holdings and Services.
Fuel Inventory
Fuel inventory at PSEG Power is valued at the lower of average cost or market and includes stored natural gas, coal, fuel oil and propane used to generate power and to satisfy obligations under PSEG Power’s gas supply contracts with PSE&G. The costs of fuel, including initial transportation costs, are included in inventory when purchased and charged to Energy Costs when used or sold.
In the first quarter of 2020, PSEG Power recorded a $20 million lower of cost or market (LOCOM) adjustment to its fuel oil inventory due to the significant decline in market pricing. Further downward adjustments may be required if the market price of oil continues to decline. However, PSEG Power may reverse the LOCOM adjustment in future quarters, limited to the adjustment recorded in the three months ended March 31, 2020, if the oil market recovers within the 2020 calendar year.
Property, Plant and Equipment
PSEG Power capitalizes costs, including those related to its jointly-owned facilities that increase the capacity, improve or extend the life of an existing asset; represent a newly acquired or constructed asset; or represent the replacement of a retired asset. The cost of maintenance, repair and replacement of minor items of property is charged to appropriate expense accounts as incurred. Environmental costs are capitalized if the costs mitigate or prevent future environmental contamination or if the costs improve existing assets’ environmental safety or efficiency. All other environmental expenditures are expensed as incurred. PSEG Power also capitalizes spare parts that meet specific criteria. Capitalized spares are depreciated over the remaining lives of their associated assets.
In March 2020, the NRC approved Peach Bottom’s second license extension for both units. Concurrent with the license extensions, PSEG Power has extended the useful life of the asset to match the 80-year life expectation and reassessed the related Asset Retirement Cost (ARC) and Asset Retirement Obligation (ARO) assumptions. This resulted in an increase to the ARC asset and ARO liability of $74 million, primarily due to lower discount rates offset by a longer discounting period as a result of the Peach Bottom units’ longer expected useful life.
PSEG Power [Member]  
Organization and Basis of Presentation Organization, Basis of Presentation and Significant Accounting Policies
Organization
Public Service Enterprise Group Incorporated (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 principal direct wholly owned subsidiaries are:
•
Public Service Electric and Gas Company (PSE&G)—which is a public utility engaged principally in the transmission of electricity and distribution of electricity and natural gas in certain areas of New Jersey. PSE&G is subject to regulation by the New Jersey Board of Public Utilities (BPU) and the Federal Energy Regulatory Commission (FERC). PSE&G also invests in regulated solar generation projects and energy efficiency and related programs in New Jersey, which are regulated by the BPU.
•
PSEG Power LLC (PSEG Power)—which is a multi-regional energy supply company that integrates the operations of its merchant nuclear and fossil generating assets with its power marketing businesses and fuel supply functions through competitive energy sales in well-developed energy markets primarily in the Northeast and Mid-Atlantic United States through its principal direct wholly owned subsidiaries. In addition, PSEG Power owns and operates solar generation in various states. PSEG Power’s subsidiaries are subject to regulation by FERC, the Nuclear Regulatory Commission (NRC), the Environmental Protection Agency (EPA) and the states in which they operate.
PSEG’s other direct wholly owned subsidiaries are: PSEG Long Island LLC (PSEG LI), which operates the Long Island Power Authority’s (LIPA) electric transmission and distribution (T&D) system under an Operations Services Agreement (OSA); PSEG Energy Holdings L.L.C. (Energy Holdings), which primarily has investments in leveraged leases; and PSEG Services Corporation (Services), which provides certain 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 guidance 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, 2019.
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. 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, 2019.
Significant Accounting Policies
Cash, Cash Equivalents and Restricted Cash
The following provides a reconciliation of cash, cash equivalents and restricted cash reported within the Condensed Consolidated Balance Sheets that sum to the total of the same such amounts for the beginning (December 31, 2019) and ending periods shown in the Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2020. Restricted cash consists primarily of deposits received related to various construction projects at PSE&G.
 
 
 
 
 
 
 
 
 
 
 
 
PSE&G
 
PSEG Power
 
Other (A)
 
Consolidated
 
 
 
Millions
 
 
As of December 31, 2019
 
 
 
 
 
 
 
 
 
Cash and Cash Equivalents
$
21

 
$
21

 
$
105

 
$
147

 
 
Restricted Cash in Other Current Assets
11

 
—

 
—

 
11

 
 
Restricted Cash in Other Noncurrent Assets
18

 
—

 
—

 
18

 
 
Cash, Cash Equivalents and Restricted Cash
$
50

 
$
21

 
$
105

 
$
176

 
 
As of March 31, 2020
 
 
 
 
 
 
 
 
 
Cash and Cash Equivalents
$
83

 
$
14

 
$
702

 
$
799

 
 
Restricted Cash in Other Current Assets
22

 
—

 
—

 
22

 
 
Restricted Cash in Other Noncurrent Assets
21

 
—

 
—

 
21

 
 
Cash, Cash Equivalents and Restricted Cash
$
126

 
$
14

 
$
702

 
$
842

 
 
 
 
 
 
 
 
 
 
 
(A)
Includes amounts applicable to PSEG (parent company), Energy Holdings and Services.
Fuel Inventory
Fuel inventory at PSEG Power is valued at the lower of average cost or market and includes stored natural gas, coal, fuel oil and propane used to generate power and to satisfy obligations under PSEG Power’s gas supply contracts with PSE&G. The costs of fuel, including initial transportation costs, are included in inventory when purchased and charged to Energy Costs when used or sold.
In the first quarter of 2020, PSEG Power recorded a $20 million lower of cost or market (LOCOM) adjustment to its fuel oil inventory due to the significant decline in market pricing. Further downward adjustments may be required if the market price of oil continues to decline. However, PSEG Power may reverse the LOCOM adjustment in future quarters, limited to the adjustment recorded in the three months ended March 31, 2020, if the oil market recovers within the 2020 calendar year.
Property, Plant and Equipment
PSEG Power capitalizes costs, including those related to its jointly-owned facilities that increase the capacity, improve or extend the life of an existing asset; represent a newly acquired or constructed asset; or represent the replacement of a retired asset. The cost of maintenance, repair and replacement of minor items of property is charged to appropriate expense accounts as incurred. Environmental costs are capitalized if the costs mitigate or prevent future environmental contamination or if the costs improve existing assets’ environmental safety or efficiency. All other environmental expenditures are expensed as incurred. PSEG Power also capitalizes spare parts that meet specific criteria. Capitalized spares are depreciated over the remaining lives of their associated assets.
In March 2020, the NRC approved Peach Bottom’s second license extension for both units. Concurrent with the license extensions, PSEG Power has extended the useful life of the asset to match the 80-year life expectation and reassessed the related Asset Retirement Cost (ARC) and Asset Retirement Obligation (ARO) assumptions. This resulted in an increase to the ARC asset and ARO liability of $74 million, primarily due to lower discount rates offset by a longer discounting period as a result of the Peach Bottom units’ longer expected useful life.
v3.20.1
Recent Accounting Standards
 3 Months Ended
Mar. 31, 2020
New Accounting Pronouncements or Change in Accounting Principle [Line Items]  
Recent Accounting Standards Recent Accounting Standards
New Standards Issued and Adopted
Measurement of Credit Losses on Financial Instruments—Accounting Standards Update (ASU) 2016-13, updated by ASU 2018-19, 2019-04, 2019-05, 2019-11 and 2020-02
This accounting standard provides a new model for recognizing credit losses on financial assets. The new model requires entities to use an estimate of expected credit losses that will be recognized as an impairment allowance rather than a direct write-down of the amortized cost basis. The estimate of expected credit losses is to be based on past events, current conditions and supportable forecasts over a reasonable period. For purchased financial assets with credit deterioration, a similar model is to be used; however, the initial allowance will be added to the purchase price rather than reported as an allowance. Credit losses on available-for-sale debt securities will be measured in a manner similar to current GAAP; however, this standard requires those credit losses to be presented as an allowance, rather than a write-down. This new standard also requires additional disclosures of the allowance for credit losses by financial asset type, including disclosures of credit quality indicators for each class of financial asset disaggregated by year of origination.
The standard is effective for annual and interim periods beginning after December 15, 2019. PSEG adopted this standard on January 1, 2020 on a modified retrospective basis. Upon adoption, PSE&G recorded an increase of $8 million to its allowance for credit losses, offset by a $6 million increase to Regulatory and Other Assets, and a $2 million cumulative effect charge to Retained Earnings. See Note 3. Revenues. There was no impact from adoption of this standard on the financial statements of PSEG Power.
Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement—ASU 2018-13
This accounting standard modifies the disclosure requirements for fair value measurements. Certain current disclosure requirements relating to Level 3 fair value measurements, and transfers between Level 1 and Level 2 fair value measurements will be eliminated. The standard will also add certain other disclosure requirements for Level 3 fair value measurements.
The standard is effective for annual and interim periods beginning after December 15, 2019. Certain amendments in the standard will be applied prospectively for the most recent interim or annual period presented in the initial fiscal year of adoption. All other amendments of the standard will be applied retrospectively to all periods presented upon their effective date.
Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract—ASU 2018-15
This accounting standard aligns the capitalization requirements for implementation costs incurred in a hosting arrangement that is a service contract with capitalization requirements for implementation costs incurred to develop or obtain internal-use software, including hosting arrangements that include an internal-use software license. The standard follows the guidance in Accounting Standard Codification (ASC) 350—Intangibles—Goodwill and Other to determine which implementation costs to capitalize as an asset related to the service contract and which costs to expense. The standard requires the amortization of capitalized costs to be presented in Operation and Maintenance (O&M) Expense. In addition, the standard also adds presentation requirements for these costs in the statements of cash flows and financial position.
The standard is effective for annual and interim periods beginning after December 15, 2019. PSEG adopted this standard prospectively on January 1, 2020. PSEG, PSE&G and PSEG Power do not expect a material impact on their respective financial statements.
Targeted Improvements to Related Party Guidance for Variable Interest Entities (VIE)-ASU 2018-17
This accounting standard improves the VIE guidance in the area of decision-making fees. Consistent with how indirect interests held through related parties under common control are considered for determining whether a reporting entity must consolidate a VIE, indirect interests held through related parties in common control arrangements will be considered on a proportional basis for determining whether fees paid to decision makers and service providers are variable interests.
This standard is effective for annual and interim periods beginning after December 15, 2019. The standard is required to be applied retrospectively with a cumulative effect adjustment to Retained Earnings at the beginning of the earliest period presented. PSEG adopted this standard on January 1, 2020. Adoption of this standard did not have an impact on the financial statements of PSEG, PSE&G and PSEG Power.
Simplifying the Test for Goodwill Impairment—ASU 2017-04
This accounting standard requires an entity to perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. Additionally, an entity should consider income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable.
This standard requires application on a prospective basis and disclosure of the nature of and reason for the change in accounting principle upon transition. The new standard is effective for impairment tests for periods beginning January 1, 2020. PSEG early adopted this standard in the fourth quarter of 2019, and recorded an impairment loss of $16 million in O&M Expense.
Codification Improvements to Financial Instruments-ASU 2020-03
This accounting standard provides clarification of guidance for financial instruments and makes narrow scope amendments related to various issues. PSEG adopted this standard effective upon issuance. Adoption of this standard did not have an impact on the financial statements of PSEG, PSE&G and PSEG Power.
Facilitation of the Effects of Reference Rate Reform on Financial Reporting—ASU 2020-04
This accounting standard provides optional expedients and exceptions for applying GAAP to contract modifications and hedging relationships, subject to meeting certain criteria, that reference LIBOR or another reference rate expected to be discontinued. The standard is effective from its issuance date, March 12, 2020, through December 31, 2022.
PSEG adopted this standard effective upon issuance. Adoption of this standard did not have an impact on the financial statements of PSEG, PSE&G and PSEG Power.
New Standards Issued But Not Yet Adopted as of March 31, 2020
Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans—ASU 2018-14
This accounting standard modifies the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans, including the elimination of certain current disclosure requirements. Certain other disclosure requirements related to interest crediting rates have been added and certain clarifications were made to other disclosure requirements.
The standard is effective for fiscal years ending after December 15, 2020 and early adoption is permitted. Amendments in this standard will be applied on a retrospective basis to all periods presented. PSEG is currently analyzing the impact of this standard on its disclosures.
Simplifying the Accounting for Income Taxes—ASU 2019-12
This accounting standard simplifies the accounting for income taxes, including the elimination of certain exceptions to current requirements. Certain other requirements related to franchise taxes that are partially based on income, step-up of tax basis of goodwill and allocation of consolidated taxes to legal entities have been added and certain clarifications were made to other requirements.
The standard is effective for fiscal years beginning after December 15, 2020 and early adoption is permitted. Certain amendments in this standard will be applied on a retrospective basis to all periods presented. Certain other amendments will be applied on either a retrospective basis for all periods presented or a modified retrospective basis through a cumulative effect adjustment to Retained Earnings as of the beginning of the fiscal year of adoption. All other amendments will be applied on a prospective basis. PSEG is currently analyzing the impact of this standard on its financial statements.
Clarifying the Interactions between Investments-Equity Securities, Investments-Equity Method and Joint Ventures, and Derivatives and Hedging—ASU 2020-01
This accounting standard clarifies that an entity should consider transaction prices for purposes of measuring the fair value of certain equity securities immediately before applying or upon discontinuing the equity method. This accounting standard also clarifies that when accounting for contracts entered into to purchase equity securities, an entity should not consider whether, upon the settlement of the forward contract or exercise of the purchased option, the underlying securities would be accounted for under the equity method or the fair value option.
The standard is effective for fiscal years beginning after December 15, 2020. Amendments in this standard will be applied prospectively. PSEG is currently analyzing the impact of this standard on its financial statements.
Public Service Electric and Gas Company [Member]  
New Accounting Pronouncements or Change in Accounting Principle [Line Items]  
Recent Accounting Standards Recent Accounting Standards
New Standards Issued and Adopted
Measurement of Credit Losses on Financial Instruments—Accounting Standards Update (ASU) 2016-13, updated by ASU 2018-19, 2019-04, 2019-05, 2019-11 and 2020-02
This accounting standard provides a new model for recognizing credit losses on financial assets. The new model requires entities to use an estimate of expected credit losses that will be recognized as an impairment allowance rather than a direct write-down of the amortized cost basis. The estimate of expected credit losses is to be based on past events, current conditions and supportable forecasts over a reasonable period. For purchased financial assets with credit deterioration, a similar model is to be used; however, the initial allowance will be added to the purchase price rather than reported as an allowance. Credit losses on available-for-sale debt securities will be measured in a manner similar to current GAAP; however, this standard requires those credit losses to be presented as an allowance, rather than a write-down. This new standard also requires additional disclosures of the allowance for credit losses by financial asset type, including disclosures of credit quality indicators for each class of financial asset disaggregated by year of origination.
The standard is effective for annual and interim periods beginning after December 15, 2019. PSEG adopted this standard on January 1, 2020 on a modified retrospective basis. Upon adoption, PSE&G recorded an increase of $8 million to its allowance for credit losses, offset by a $6 million increase to Regulatory and Other Assets, and a $2 million cumulative effect charge to Retained Earnings. See Note 3. Revenues. There was no impact from adoption of this standard on the financial statements of PSEG Power.
Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement—ASU 2018-13
This accounting standard modifies the disclosure requirements for fair value measurements. Certain current disclosure requirements relating to Level 3 fair value measurements, and transfers between Level 1 and Level 2 fair value measurements will be eliminated. The standard will also add certain other disclosure requirements for Level 3 fair value measurements.
The standard is effective for annual and interim periods beginning after December 15, 2019. Certain amendments in the standard will be applied prospectively for the most recent interim or annual period presented in the initial fiscal year of adoption. All other amendments of the standard will be applied retrospectively to all periods presented upon their effective date.
Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract—ASU 2018-15
This accounting standard aligns the capitalization requirements for implementation costs incurred in a hosting arrangement that is a service contract with capitalization requirements for implementation costs incurred to develop or obtain internal-use software, including hosting arrangements that include an internal-use software license. The standard follows the guidance in Accounting Standard Codification (ASC) 350—Intangibles—Goodwill and Other to determine which implementation costs to capitalize as an asset related to the service contract and which costs to expense. The standard requires the amortization of capitalized costs to be presented in Operation and Maintenance (O&M) Expense. In addition, the standard also adds presentation requirements for these costs in the statements of cash flows and financial position.
The standard is effective for annual and interim periods beginning after December 15, 2019. PSEG adopted this standard prospectively on January 1, 2020. PSEG, PSE&G and PSEG Power do not expect a material impact on their respective financial statements.
Targeted Improvements to Related Party Guidance for Variable Interest Entities (VIE)-ASU 2018-17
This accounting standard improves the VIE guidance in the area of decision-making fees. Consistent with how indirect interests held through related parties under common control are considered for determining whether a reporting entity must consolidate a VIE, indirect interests held through related parties in common control arrangements will be considered on a proportional basis for determining whether fees paid to decision makers and service providers are variable interests.
This standard is effective for annual and interim periods beginning after December 15, 2019. The standard is required to be applied retrospectively with a cumulative effect adjustment to Retained Earnings at the beginning of the earliest period presented. PSEG adopted this standard on January 1, 2020. Adoption of this standard did not have an impact on the financial statements of PSEG, PSE&G and PSEG Power.
Simplifying the Test for Goodwill Impairment—ASU 2017-04
This accounting standard requires an entity to perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. Additionally, an entity should consider income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable.
This standard requires application on a prospective basis and disclosure of the nature of and reason for the change in accounting principle upon transition. The new standard is effective for impairment tests for periods beginning January 1, 2020. PSEG early adopted this standard in the fourth quarter of 2019, and recorded an impairment loss of $16 million in O&M Expense.
Codification Improvements to Financial Instruments-ASU 2020-03
This accounting standard provides clarification of guidance for financial instruments and makes narrow scope amendments related to various issues. PSEG adopted this standard effective upon issuance. Adoption of this standard did not have an impact on the financial statements of PSEG, PSE&G and PSEG Power.
Facilitation of the Effects of Reference Rate Reform on Financial Reporting—ASU 2020-04
This accounting standard provides optional expedients and exceptions for applying GAAP to contract modifications and hedging relationships, subject to meeting certain criteria, that reference LIBOR or another reference rate expected to be discontinued. The standard is effective from its issuance date, March 12, 2020, through December 31, 2022.
PSEG adopted this standard effective upon issuance. Adoption of this standard did not have an impact on the financial statements of PSEG, PSE&G and PSEG Power.
New Standards Issued But Not Yet Adopted as of March 31, 2020
Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans—ASU 2018-14
This accounting standard modifies the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans, including the elimination of certain current disclosure requirements. Certain other disclosure requirements related to interest crediting rates have been added and certain clarifications were made to other disclosure requirements.
The standard is effective for fiscal years ending after December 15, 2020 and early adoption is permitted. Amendments in this standard will be applied on a retrospective basis to all periods presented. PSEG is currently analyzing the impact of this standard on its disclosures.
Simplifying the Accounting for Income Taxes—ASU 2019-12
This accounting standard simplifies the accounting for income taxes, including the elimination of certain exceptions to current requirements. Certain other requirements related to franchise taxes that are partially based on income, step-up of tax basis of goodwill and allocation of consolidated taxes to legal entities have been added and certain clarifications were made to other requirements.
The standard is effective for fiscal years beginning after December 15, 2020 and early adoption is permitted. Certain amendments in this standard will be applied on a retrospective basis to all periods presented. Certain other amendments will be applied on either a retrospective basis for all periods presented or a modified retrospective basis through a cumulative effect adjustment to Retained Earnings as of the beginning of the fiscal year of adoption. All other amendments will be applied on a prospective basis. PSEG is currently analyzing the impact of this standard on its financial statements.
Clarifying the Interactions between Investments-Equity Securities, Investments-Equity Method and Joint Ventures, and Derivatives and Hedging—ASU 2020-01
This accounting standard clarifies that an entity should consider transaction prices for purposes of measuring the fair value of certain equity securities immediately before applying or upon discontinuing the equity method. This accounting standard also clarifies that when accounting for contracts entered into to purchase equity securities, an entity should not consider whether, upon the settlement of the forward contract or exercise of the purchased option, the underlying securities would be accounted for under the equity method or the fair value option.
The standard is effective for fiscal years beginning after December 15, 2020. Amendments in this standard will be applied prospectively. PSEG is currently analyzing the impact of this standard on its financial statements.
PSEG Power [Member]  
New Accounting Pronouncements or Change in Accounting Principle [Line Items]  
Recent Accounting Standards Recent Accounting Standards
New Standards Issued and Adopted
Measurement of Credit Losses on Financial Instruments—Accounting Standards Update (ASU) 2016-13, updated by ASU 2018-19, 2019-04, 2019-05, 2019-11 and 2020-02
This accounting standard provides a new model for recognizing credit losses on financial assets. The new model requires entities to use an estimate of expected credit losses that will be recognized as an impairment allowance rather than a direct write-down of the amortized cost basis. The estimate of expected credit losses is to be based on past events, current conditions and supportable forecasts over a reasonable period. For purchased financial assets with credit deterioration, a similar model is to be used; however, the initial allowance will be added to the purchase price rather than reported as an allowance. Credit losses on available-for-sale debt securities will be measured in a manner similar to current GAAP; however, this standard requires those credit losses to be presented as an allowance, rather than a write-down. This new standard also requires additional disclosures of the allowance for credit losses by financial asset type, including disclosures of credit quality indicators for each class of financial asset disaggregated by year of origination.
The standard is effective for annual and interim periods beginning after December 15, 2019. PSEG adopted this standard on January 1, 2020 on a modified retrospective basis. Upon adoption, PSE&G recorded an increase of $8 million to its allowance for credit losses, offset by a $6 million increase to Regulatory and Other Assets, and a $2 million cumulative effect charge to Retained Earnings. See Note 3. Revenues. There was no impact from adoption of this standard on the financial statements of PSEG Power.
Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement—ASU 2018-13
This accounting standard modifies the disclosure requirements for fair value measurements. Certain current disclosure requirements relating to Level 3 fair value measurements, and transfers between Level 1 and Level 2 fair value measurements will be eliminated. The standard will also add certain other disclosure requirements for Level 3 fair value measurements.
The standard is effective for annual and interim periods beginning after December 15, 2019. Certain amendments in the standard will be applied prospectively for the most recent interim or annual period presented in the initial fiscal year of adoption. All other amendments of the standard will be applied retrospectively to all periods presented upon their effective date.
Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract—ASU 2018-15
This accounting standard aligns the capitalization requirements for implementation costs incurred in a hosting arrangement that is a service contract with capitalization requirements for implementation costs incurred to develop or obtain internal-use software, including hosting arrangements that include an internal-use software license. The standard follows the guidance in Accounting Standard Codification (ASC) 350—Intangibles—Goodwill and Other to determine which implementation costs to capitalize as an asset related to the service contract and which costs to expense. The standard requires the amortization of capitalized costs to be presented in Operation and Maintenance (O&M) Expense. In addition, the standard also adds presentation requirements for these costs in the statements of cash flows and financial position.
The standard is effective for annual and interim periods beginning after December 15, 2019. PSEG adopted this standard prospectively on January 1, 2020. PSEG, PSE&G and PSEG Power do not expect a material impact on their respective financial statements.
Targeted Improvements to Related Party Guidance for Variable Interest Entities (VIE)-ASU 2018-17
This accounting standard improves the VIE guidance in the area of decision-making fees. Consistent with how indirect interests held through related parties under common control are considered for determining whether a reporting entity must consolidate a VIE, indirect interests held through related parties in common control arrangements will be considered on a proportional basis for determining whether fees paid to decision makers and service providers are variable interests.
This standard is effective for annual and interim periods beginning after December 15, 2019. The standard is required to be applied retrospectively with a cumulative effect adjustment to Retained Earnings at the beginning of the earliest period presented. PSEG adopted this standard on January 1, 2020. Adoption of this standard did not have an impact on the financial statements of PSEG, PSE&G and PSEG Power.
Simplifying the Test for Goodwill Impairment—ASU 2017-04
This accounting standard requires an entity to perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. Additionally, an entity should consider income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable.
This standard requires application on a prospective basis and disclosure of the nature of and reason for the change in accounting principle upon transition. The new standard is effective for impairment tests for periods beginning January 1, 2020. PSEG early adopted this standard in the fourth quarter of 2019, and recorded an impairment loss of $16 million in O&M Expense.
Codification Improvements to Financial Instruments-ASU 2020-03
This accounting standard provides clarification of guidance for financial instruments and makes narrow scope amendments related to various issues. PSEG adopted this standard effective upon issuance. Adoption of this standard did not have an impact on the financial statements of PSEG, PSE&G and PSEG Power.
Facilitation of the Effects of Reference Rate Reform on Financial Reporting—ASU 2020-04
This accounting standard provides optional expedients and exceptions for applying GAAP to contract modifications and hedging relationships, subject to meeting certain criteria, that reference LIBOR or another reference rate expected to be discontinued. The standard is effective from its issuance date, March 12, 2020, through December 31, 2022.
PSEG adopted this standard effective upon issuance. Adoption of this standard did not have an impact on the financial statements of PSEG, PSE&G and PSEG Power.
New Standards Issued But Not Yet Adopted as of March 31, 2020
Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans—ASU 2018-14
This accounting standard modifies the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans, including the elimination of certain current disclosure requirements. Certain other disclosure requirements related to interest crediting rates have been added and certain clarifications were made to other disclosure requirements.
The standard is effective for fiscal years ending after December 15, 2020 and early adoption is permitted. Amendments in this standard will be applied on a retrospective basis to all periods presented. PSEG is currently analyzing the impact of this standard on its disclosures.
Simplifying the Accounting for Income Taxes—ASU 2019-12
This accounting standard simplifies the accounting for income taxes, including the elimination of certain exceptions to current requirements. Certain other requirements related to franchise taxes that are partially based on income, step-up of tax basis of goodwill and allocation of consolidated taxes to legal entities have been added and certain clarifications were made to other requirements.
The standard is effective for fiscal years beginning after December 15, 2020 and early adoption is permitted. Certain amendments in this standard will be applied on a retrospective basis to all periods presented. Certain other amendments will be applied on either a retrospective basis for all periods presented or a modified retrospective basis through a cumulative effect adjustment to Retained Earnings as of the beginning of the fiscal year of adoption. All other amendments will be applied on a prospective basis. PSEG is currently analyzing the impact of this standard on its financial statements.
Clarifying the Interactions between Investments-Equity Securities, Investments-Equity Method and Joint Ventures, and Derivatives and Hedging—ASU 2020-01
This accounting standard clarifies that an entity should consider transaction prices for purposes of measuring the fair value of certain equity securities immediately before applying or upon discontinuing the equity method. This accounting standard also clarifies that when accounting for contracts entered into to purchase equity securities, an entity should not consider whether, upon the settlement of the forward contract or exercise of the purchased option, the underlying securities would be accounted for under the equity method or the fair value option.
The standard is effective for fiscal years beginning after December 15, 2020. Amendments in this standard will be applied prospectively. PSEG is currently analyzing the impact of this standard on its financial statements.
v3.20.1
Revenues Revenues
 3 Months Ended
Mar. 31, 2020
Revenue from Contract with Customer [Text Block] Revenues
Nature of Goods and Services
The following is a description of principal activities by reportable segment from which PSEG, PSE&G and PSEG Power generate their revenues.
PSE&G
Revenues from Contracts with Customers
Electric and Gas Distribution and Transmission Revenues—PSE&G sells gas and electricity to customers under default commodity supply tariffs. PSE&G’s regulated electric and gas default commodity supply and distribution services are separate tariffs which are satisfied as the product(s) and/or services are delivered to the customer. The electric and gas commodity and delivery tariffs are recurring contracts in effect until modified through the regulatory approval process as appropriate. Revenue is recognized over time as the service is rendered to the customer. Included in PSE&G’s regulated revenues are unbilled electric and gas revenues which represent the estimated amount customers will be billed for services rendered from the most recent meter reading to the end of the respective accounting period.
PSE&G’s transmission revenues are earned under a separate tariff using a FERC-approved annual formula rate mechanism. The performance obligation of transmission service is satisfied and revenue is recognized as it is provided to the customer. The
formula rate mechanism provides for an annual filing of an estimated revenue requirement with rates effective January 1 of each year and a true-up to that estimate based on actual revenue requirements. The true-up mechanism is an alternative revenue which is outside the scope of revenue from contracts with customers.
Other Revenues from Contracts with Customers
Other revenues from contracts with customers, which are not a material source of PSE&G revenues, are generated primarily from appliance repair services and solar generation projects. The performance obligations under these contracts are satisfied and revenue is recognized as control of products is delivered or services are rendered.
Payment for services rendered and products transferred are typically due within 30 days of month of delivery.
Revenues Unrelated to Contracts with Customers
Other PSE&G revenues unrelated to contracts with customers are derived from alternative revenue mechanisms recorded pursuant to regulatory accounting guidance. These revenues, which include weather normalization, green energy program true-ups and transmission formula rate true-ups, are not a material source of PSE&G revenues.
PSEG Power
Revenues from Contracts with Customers
Electricity and Related Products—Wholesale and retail load contracts are executed in the different Independent System Operator (ISO) regions for the bundled supply of energy, capacity, renewable energy credits (RECs) and ancillary services representing PSEG Power’s performance obligations. Revenue for these contracts is recognized over time as the bundled service is provided to the customer. Transaction terms generally run from several months to three years. PSEG Power also sells to the ISOs energy and ancillary services which are separately transacted in the day-ahead or real-time energy markets. The energy and ancillary services performance obligations are typically satisfied over time as delivered and revenue is recognized accordingly. PSEG Power generally reports electricity sales and purchases conducted with those individual ISOs net on an hourly basis in either Operating Revenues or Energy Costs in its Condensed Consolidated Statements of Operations. The classification depends on the net hourly activity.
PSEG Power enters into capacity sales and capacity purchases through the ISOs. The transactions are reported on a net basis dependent on PSEG Power’s monthly net sale or purchase position through the individual ISOs. The performance obligations with the ISOs are satisfied over time upon delivery of the capacity and revenue is recognized accordingly. In addition to capacity sold through the ISOs, PSEG Power sells capacity through bilateral contracts and the related revenue is reported on a gross basis and recognized over time upon delivery of the capacity.
In April 2019, PSEG Power’s Salem 1, Salem 2 and Hope Creek nuclear plants were awarded Zero Emission Certificates (ZECs) by the BPU. These nuclear plants are expected to receive ZEC revenue for approximately three years, through May 2022, from the electric distribution companies (EDCs) in New Jersey. PSEG Power recognizes revenue when the units generate electricity, which is when the performance obligation is satisfied. These revenues are included in PJM Interconnection, L.L.C. (PJM) Sales in the following tables. See Note 4. Early Plant Retirements/Asset Dispositions for additional information.
Gas Contracts—PSEG Power sells wholesale natural gas, primarily through an index based full-requirements Basic Gas Supply Service (BGSS) contract with PSE&G to meet the gas supply requirements of PSE&G’s customers. The BGSS contract remains in effect unless terminated by either party with a two-year notice. The performance obligation is primarily delivery of gas which is satisfied over time. Revenue is recognized as gas is delivered. Based upon the availability of natural gas, storage and pipeline capacity beyond PSE&G’s daily needs, PSEG Power also sells gas and pipeline capacity to other counterparties under bilateral contracts. The performance obligation under these contracts is satisfied over time upon delivery of the gas or capacity, and revenue is recognized accordingly.
Other Revenues from Contracts with Customers
PSEG Power enters into bilateral contracts to sell solar power and solar RECs from its solar facilities. Contract terms range from 15 to 30 years. The performance obligations are generally solar power and RECs which are transferred to customers upon generation. Revenue is recognized upon generation of the solar power.
PSEG Power has entered into long-term contracts with LIPA for energy management and fuel procurement services. Revenue is recognized over time as services are rendered.
Revenues Unrelated to Contracts with Customers
PSEG Power’s revenues unrelated to contracts with customers include electric, gas and certain energy-related transactions accounted for in accordance with Derivatives and Hedging accounting guidance. See Note 13. Financial Risk Management
Activities for further discussion. PSEG Power is also a party to solar contracts that qualify as leases and are accounted for in accordance with lease accounting guidance.
Other
Revenues from Contracts with Customers
PSEG LI has a contract with LIPA which generates revenues. PSEG LI’s subsidiary, Long Island Electric Utility Servco, LLC (Servco) records costs which are recovered from LIPA and records the recovery of those costs as revenues when Servco is a principal in the transaction.
Revenues Unrelated to Contracts with Customers
Energy Holdings generates lease revenues which are recorded pursuant to lease accounting guidance.
Disaggregation of Revenues
 
 
 
 
 
 
 
 
 
 
 
 
 
 
PSE&G
 
PSEG Power
 
Other 
 
Eliminations
 
Consolidated
 
 
 
Millions
 
 
Three Months Ended March 31, 2020
 
 
 
 
 
 
 
 
 
 
 
Revenues from Contracts with Customers
 
 
 
 
 
 
 
 
 
 
 
Electric Distribution
$
649

 
$
—

 
$
—

 
$
—

 
$
649

 
 
Gas Distribution
731

 
—

 
—

 
(2
)
 
729

 
 
Transmission
366

 
—

 
—

 
—

 
366

 
 
Electricity and Related Product Sales
 
 
 
 
 
 
 
 
 
 
 
PJM
 
 
 
 
 
 
 
 
 
 
 
Third-Party Sales
—

 
368

 
—

 
—

 
368

 
 
Sales to Affiliates
—

 
121

 
—

 
(121
)
 
—

 
 
New York ISO
—

 
25

 
—

 
—

 
25

 
 
ISO New England
—

 
48

 
—

 
—

 
48

 
 
Gas Sales
 
 
 
 
 
 
 
 
 
 
 
Third-Party Sales
—

 
29

 
—

 
—

 
29

 
 
Sales to Affiliates
—

 
354

 
—

 
(354
)
 
—

 
 
Other Revenues from Contracts with Customers (A)
82

 
10

 
144

 
(1
)
 
235

 
 
Total Revenues from Contracts with Customers
1,828

 
955

 
144

 
(478
)
 
2,449

 
 
Revenues Unrelated to Contracts with Customers (B)
55

 
265

 
12

 
—

 
332

 
 
Total Operating Revenues
$
1,883

 
$
1,220

 
$
156

 
$
(478
)
 
$
2,781

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
PSE&G
 
PSEG Power
 
Other 
 
Eliminations
 
Consolidated
 
 
 
Millions
 
 
Three Months Ended March 31, 2019
 
 
 
 
 
 
 
 
 
 
 
Revenues from Contracts with Customers
 
 
 
 
 
 
 
 
 
 
 
Electric Distribution
$
742

 
$
—

 
$
—

 
$
—

 
$
742

 
 
Gas Distribution
931

 
—

 
—

 
(3
)
 
928

 
 
Transmission
288

 
—

 
—

 
—

 
288

 
 
Electricity and Related Product Sales
 
 
 
 
 
 
 
 
 
 
 
 PJM
 
 
 
 
 
 
 
 
 
 
 
Third-Party Sales
—

 
515

 
—

 
—

 
515

 
 
         Sales to Affiliates
—

 
126

 
—

 
(126
)
 
—

 
 
New York ISO
—

 
41

 
—

 
—

 
41

 
 
ISO New England
—

 
21

 
—

 
—

 
21

 
 
Gas Sales
 
 
 
 
 
 
 
 
 
 
 
Third-Party Sales
—

 
47

 
—

 
—

 
47

 
 
Sales to Affiliates
—

 
479

 
—

 
(479
)
 
—

 
 
Other Revenues from Contracts with Customers (A)
64

 
10

 
131

 
(1
)
 
204

 
 
Total Revenues from Contracts with Customers
2,025

 
1,239

 
131

 
(609
)
 
2,786

 
 
Revenues Unrelated to Contracts with Customers (B)
7

 
177

 
10

 
—

 
194

 
 
Total Operating Revenues
$
2,032

 
$
1,416

 
$
141

 
$
(609
)
 
$
2,980

 
 
 
 
 
 
 
 
 
 
 
 
 
(A)
Includes primarily revenues from appliance repair services at PSE&G, solar power projects and energy management and fuel service contracts with LIPA at PSEG Power, and PSEG LI’s OSA with LIPA in Other.
(B)
Includes primarily alternative revenues at PSE&G, derivative contracts and lease contracts at PSEG Power, and lease contracts in Other.
Contract Balances
PSE&G
PSE&G did not have any material contract balances (rights to consideration for services already provided or obligations to provide services in the future for consideration already received) as of March 31, 2020 and December 31, 2019. Substantially all of PSE&G’s accounts receivable and unbilled revenues result from contracts with customers that are priced at tariff rates. Allowances represented approximately seven percent and six percent of accounts receivable (including unbilled revenues in 2020) as of March 31, 2020 and December 31, 2019, respectively. As of December 31, 2019, there was no allowance for unbilled revenues. Effective January 1, 2020, PSE&G adopted ASU 2016-13 and recorded an allowance for unbilled revenues. See Note 2. Recent Accounting Standards.
Accounts Receivable—Allowance for Credit Losses
PSE&G’s accounts receivable, including unbilled revenues, is primarily comprised of utility customer receivables for the provision of electric and gas service and appliance services, and are reported in the balance sheet as gross outstanding amounts adjusted for an allowance for credit losses. The allowance for credit losses reflects PSE&G’s best estimate of losses on the account balances. The allowance is based on PSE&G’s projection of accounts receivable aging, historical experience, economic factors and other currently available evidence, including the estimated impact of the ongoing coronavirus pandemic on the outstanding balances as of March 31, 2020. PSE&G’s electric bad debt expense is recoverable through its Societal Benefits Clause mechanism. The following provides a reconciliation of PSE&G’s allowance for credit losses for the three months ended March 31, 2020:
 
 
 
 
 
 
Three Months Ended March 31, 2020
 
 
 
Millions
 
 
Balance as of January 1, 2020 (A)
$
68

 
 
Utility Customer Accounts
 
 
 
     Provision for Expected Credit Losses
32

 
 
     Write-offs, net of Recoveries of $2 million
(20
)
 
 
Balance as of March 31, 2020
$
80

 
 
 
 
 
(A)
Includes an $8 million pre-tax increase at adoption of ASU 2016-13. See Note 2. Recent Accounting Standards.         
PSEG Power
PSEG Power generally collects consideration upon satisfaction of performance obligations, and therefore, PSEG Power had no material contract balances as of March 31, 2020 and December 31, 2019.
PSEG Power’s accounts receivable include amounts resulting from contracts with customers and other contracts which are out of scope of accounting guidance for revenues from contracts with customers. The majority of these accounts receivable are subject to master netting agreements. As a result, accounts receivable resulting from contracts with customers and receivables unrelated to contracts with customers are netted within Accounts Receivable and Accounts Payable on the Condensed Consolidated Balance Sheets.
PSEG Power’s accounts receivable consist mainly of revenues from wholesale load contracts and capacity sales which are executed in the different ISO regions. PSEG Power also sells energy and ancillary services directly to ISOs and other counterparties. In the wholesale energy markets in which PSEG Power operates, payment for services rendered and products transferred are typically due within 30 days of month of delivery. As such, there is little credit risk associated with these receivables. PSEG Power did not record an allowance for credit losses for these receivables as of March 31, 2020. PSEG Power monitors the status of its counterparties on an ongoing basis to assess whether there are any anticipated credit losses.
Other
PSEG LI did not have any material contract balances as of March 31, 2020 and December 31, 2019.
Remaining Performance Obligations under Fixed Consideration Contracts
PSEG Power and PSE&G primarily record revenues as allowed by the guidance, which states that if an entity has a right to consideration from a customer in an amount that corresponds directly with the value to the customer of the entity’s performance completed to date, the entity may recognize revenue in the amount to which the entity has a right to invoice. PSEG has future performance obligations under contracts with fixed consideration as follows:
PSEG Power
As previously stated, capacity transactions with ISOs are reported on a net basis dependent on PSEG Power’s monthly net sale or purchase position through the individual ISOs.
Capacity Revenues from the PJM Annual Base Residual and Incremental Auctions—The Base Residual Auction is generally conducted annually three years in advance of the operating period. The 2022/2023 auction has yet to be held and is not expected until the first half of 2021. PSEG Power expects to realize the following average capacity prices resulting from the base and incremental auctions, including unit specific bilateral contracts for previously cleared capacity obligations.
 
 
 
 
 
 
 
 
 
Delivery Year
 
$ per MW-Day
 
MW Cleared
 
 
June 2019 to May 2020
 
$116
 
8,300

 
 
June 2020 to May 2021
 
$179
 
7,300

 
 
June 2021 to May 2022
 
$182
 
6,900

 
 
 
 
 
 
 
 
Capacity Payments from the ISO New England Forward Capacity Market—The Forward Capacity Market (FCM) Auction is conducted annually three years in advance of the operating period. The table below includes PSEG Power’s cleared capacity in the FCM Auction for the Bridgeport Harbor Station 5 (BH5), which cleared the 2019/2020 auction at $231/MW-day for seven years, and the planned retirement of Bridgeport Harbor Station 3 (BH3) in May 2021. PSEG Power expects to realize the
following average capacity prices for capacity obligations to be satisfied resulting from the FCM auctions which have been completed through May 2024 and the seven-year rate lock for BH5 through May 2026:
 
 
 
 
 
 
 
 
 
Delivery Year
 
$ per MW-Day (A)
 
MW Cleared
 
 
June 2019 to May 2020
 
$231
 
1,330

 
 
June 2020 to May 2021
 
$195
 
1,330

 
 
June 2021 to May 2022
 
$192
 
950

 
 
June 2022 to May 2023
 
$179
 
950

 
 
June 2023 to May 2024
 
$141
 
1,060

 
 
June 2024 to May 2025
 
$231
 
480

 
 
June 2025 to May 2026
 
$231
 
480

 
 
 
 
 
 
 
 

(A)
Capacity cleared prices for BH5 through 2026 will be escalated based upon the Handy-Whitman Index. These adjustments are not included above.
Bilateral capacity contracts—Capacity obligations pursuant to contract terms through 2029 are anticipated to result in revenues totaling $161 million.
Other
The LIPA OSA is a 12-year services contract ending in 2025 with annual fixed and incentive components. The fixed fee for the provision of services thereunder in 2020 is $67 million and could increase each year based on the change in the Consumer Price Index (CPI).
Public Service Electric and Gas Company [Member]  
Revenue from Contract with Customer [Text Block] Revenues
Nature of Goods and Services
The following is a description of principal activities by reportable segment from which PSEG, PSE&G and PSEG Power generate their revenues.
PSE&G
Revenues from Contracts with Customers
Electric and Gas Distribution and Transmission Revenues—PSE&G sells gas and electricity to customers under default commodity supply tariffs. PSE&G’s regulated electric and gas default commodity supply and distribution services are separate tariffs which are satisfied as the product(s) and/or services are delivered to the customer. The electric and gas commodity and delivery tariffs are recurring contracts in effect until modified through the regulatory approval process as appropriate. Revenue is recognized over time as the service is rendered to the customer. Included in PSE&G’s regulated revenues are unbilled electric and gas revenues which represent the estimated amount customers will be billed for services rendered from the most recent meter reading to the end of the respective accounting period.
PSE&G’s transmission revenues are earned under a separate tariff using a FERC-approved annual formula rate mechanism. The performance obligation of transmission service is satisfied and revenue is recognized as it is provided to the customer. The
formula rate mechanism provides for an annual filing of an estimated revenue requirement with rates effective January 1 of each year and a true-up to that estimate based on actual revenue requirements. The true-up mechanism is an alternative revenue which is outside the scope of revenue from contracts with customers.
Other Revenues from Contracts with Customers
Other revenues from contracts with customers, which are not a material source of PSE&G revenues, are generated primarily from appliance repair services and solar generation projects. The performance obligations under these contracts are satisfied and revenue is recognized as control of products is delivered or services are rendered.
Payment for services rendered and products transferred are typically due within 30 days of month of delivery.
Revenues Unrelated to Contracts with Customers
Other PSE&G revenues unrelated to contracts with customers are derived from alternative revenue mechanisms recorded pursuant to regulatory accounting guidance. These revenues, which include weather normalization, green energy program true-ups and transmission formula rate true-ups, are not a material source of PSE&G revenues.
PSEG Power
Revenues from Contracts with Customers
Electricity and Related Products—Wholesale and retail load contracts are executed in the different Independent System Operator (ISO) regions for the bundled supply of energy, capacity, renewable energy credits (RECs) and ancillary services representing PSEG Power’s performance obligations. Revenue for these contracts is recognized over time as the bundled service is provided to the customer. Transaction terms generally run from several months to three years. PSEG Power also sells to the ISOs energy and ancillary services which are separately transacted in the day-ahead or real-time energy markets. The energy and ancillary services performance obligations are typically satisfied over time as delivered and revenue is recognized accordingly. PSEG Power generally reports electricity sales and purchases conducted with those individual ISOs net on an hourly basis in either Operating Revenues or Energy Costs in its Condensed Consolidated Statements of Operations. The classification depends on the net hourly activity.
PSEG Power enters into capacity sales and capacity purchases through the ISOs. The transactions are reported on a net basis dependent on PSEG Power’s monthly net sale or purchase position through the individual ISOs. The performance obligations with the ISOs are satisfied over time upon delivery of the capacity and revenue is recognized accordingly. In addition to capacity sold through the ISOs, PSEG Power sells capacity through bilateral contracts and the related revenue is reported on a gross basis and recognized over time upon delivery of the capacity.
In April 2019, PSEG Power’s Salem 1, Salem 2 and Hope Creek nuclear plants were awarded Zero Emission Certificates (ZECs) by the BPU. These nuclear plants are expected to receive ZEC revenue for approximately three years, through May 2022, from the electric distribution companies (EDCs) in New Jersey. PSEG Power recognizes revenue when the units generate electricity, which is when the performance obligation is satisfied. These revenues are included in PJM Interconnection, L.L.C. (PJM) Sales in the following tables. See Note 4. Early Plant Retirements/Asset Dispositions for additional information.
Gas Contracts—PSEG Power sells wholesale natural gas, primarily through an index based full-requirements Basic Gas Supply Service (BGSS) contract with PSE&G to meet the gas supply requirements of PSE&G’s customers. The BGSS contract remains in effect unless terminated by either party with a two-year notice. The performance obligation is primarily delivery of gas which is satisfied over time. Revenue is recognized as gas is delivered. Based upon the availability of natural gas, storage and pipeline capacity beyond PSE&G’s daily needs, PSEG Power also sells gas and pipeline capacity to other counterparties under bilateral contracts. The performance obligation under these contracts is satisfied over time upon delivery of the gas or capacity, and revenue is recognized accordingly.
Other Revenues from Contracts with Customers
PSEG Power enters into bilateral contracts to sell solar power and solar RECs from its solar facilities. Contract terms range from 15 to 30 years. The performance obligations are generally solar power and RECs which are transferred to customers upon generation. Revenue is recognized upon generation of the solar power.
PSEG Power has entered into long-term contracts with LIPA for energy management and fuel procurement services. Revenue is recognized over time as services are rendered.
Revenues Unrelated to Contracts with Customers
PSEG Power’s revenues unrelated to contracts with customers include electric, gas and certain energy-related transactions accounted for in accordance with Derivatives and Hedging accounting guidance. See Note 13. Financial Risk Management
Activities for further discussion. PSEG Power is also a party to solar contracts that qualify as leases and are accounted for in accordance with lease accounting guidance.
Other
Revenues from Contracts with Customers
PSEG LI has a contract with LIPA which generates revenues. PSEG LI’s subsidiary, Long Island Electric Utility Servco, LLC (Servco) records costs which are recovered from LIPA and records the recovery of those costs as revenues when Servco is a principal in the transaction.
Revenues Unrelated to Contracts with Customers
Energy Holdings generates lease revenues which are recorded pursuant to lease accounting guidance.
Disaggregation of Revenues
 
 
 
 
 
 
 
 
 
 
 
 
 
 
PSE&G
 
PSEG Power
 
Other 
 
Eliminations
 
Consolidated
 
 
 
Millions
 
 
Three Months Ended March 31, 2020
 
 
 
 
 
 
 
 
 
 
 
Revenues from Contracts with Customers
 
 
 
 
 
 
 
 
 
 
 
Electric Distribution
$
649

 
$
—

 
$
—

 
$
—

 
$
649

 
 
Gas Distribution
731

 
—

 
—

 
(2
)
 
729

 
 
Transmission
366

 
—

 
—

 
—

 
366

 
 
Electricity and Related Product Sales
 
 
 
 
 
 
 
 
 
 
 
PJM
 
 
 
 
 
 
 
 
 
 
 
Third-Party Sales
—

 
368

 
—

 
—

 
368

 
 
Sales to Affiliates
—

 
121

 
—

 
(121
)
 
—

 
 
New York ISO
—

 
25

 
—

 
—

 
25

 
 
ISO New England
—

 
48

 
—

 
—

 
48

 
 
Gas Sales
 
 
 
 
 
 
 
 
 
 
 
Third-Party Sales
—

 
29

 
—

 
—

 
29

 
 
Sales to Affiliates
—

 
354

 
—

 
(354
)
 
—

 
 
Other Revenues from Contracts with Customers (A)
82

 
10

 
144

 
(1
)
 
235

 
 
Total Revenues from Contracts with Customers
1,828

 
955

 
144

 
(478
)
 
2,449

 
 
Revenues Unrelated to Contracts with Customers (B)
55

 
265

 
12

 
—

 
332

 
 
Total Operating Revenues
$
1,883

 
$
1,220

 
$
156

 
$
(478
)
 
$
2,781

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
PSE&G
 
PSEG Power
 
Other 
 
Eliminations
 
Consolidated
 
 
 
Millions
 
 
Three Months Ended March 31, 2019
 
 
 
 
 
 
 
 
 
 
 
Revenues from Contracts with Customers
 
 
 
 
 
 
 
 
 
 
 
Electric Distribution
$
742

 
$
—

 
$
—

 
$
—

 
$
742

 
 
Gas Distribution
931

 
—

 
—

 
(3
)
 
928

 
 
Transmission
288

 
—

 
—

 
—

 
288

 
 
Electricity and Related Product Sales
 
 
 
 
 
 
 
 
 
 
 
 PJM
 
 
 
 
 
 
 
 
 
 
 
Third-Party Sales
—

 
515

 
—

 
—

 
515

 
 
         Sales to Affiliates
—

 
126

 
—

 
(126
)
 
—

 
 
New York ISO
—

 
41

 
—

 
—

 
41

 
 
ISO New England
—

 
21

 
—

 
—

 
21

 
 
Gas Sales
 
 
 
 
 
 
 
 
 
 
 
Third-Party Sales
—

 
47

 
—

 
—

 
47

 
 
Sales to Affiliates
—

 
479

 
—

 
(479
)
 
—

 
 
Other Revenues from Contracts with Customers (A)
64

 
10

 
131

 
(1
)
 
204

 
 
Total Revenues from Contracts with Customers
2,025

 
1,239

 
131

 
(609
)
 
2,786

 
 
Revenues Unrelated to Contracts with Customers (B)
7

 
177

 
10

 
—

 
194

 
 
Total Operating Revenues
$
2,032

 
$
1,416

 
$
141

 
$
(609
)
 
$
2,980

 
 
 
 
 
 
 
 
 
 
 
 
 
(A)
Includes primarily revenues from appliance repair services at PSE&G, solar power projects and energy management and fuel service contracts with LIPA at PSEG Power, and PSEG LI’s OSA with LIPA in Other.
(B)
Includes primarily alternative revenues at PSE&G, derivative contracts and lease contracts at PSEG Power, and lease contracts in Other.
Contract Balances
PSE&G
PSE&G did not have any material contract balances (rights to consideration for services already provided or obligations to provide services in the future for consideration already received) as of March 31, 2020 and December 31, 2019. Substantially all of PSE&G’s accounts receivable and unbilled revenues result from contracts with customers that are priced at tariff rates. Allowances represented approximately seven percent and six percent of accounts receivable (including unbilled revenues in 2020) as of March 31, 2020 and December 31, 2019, respectively. As of December 31, 2019, there was no allowance for unbilled revenues. Effective January 1, 2020, PSE&G adopted ASU 2016-13 and recorded an allowance for unbilled revenues. See Note 2. Recent Accounting Standards.
Accounts Receivable—Allowance for Credit Losses
PSE&G’s accounts receivable, including unbilled revenues, is primarily comprised of utility customer receivables for the provision of electric and gas service and appliance services, and are reported in the balance sheet as gross outstanding amounts adjusted for an allowance for credit losses. The allowance for credit losses reflects PSE&G’s best estimate of losses on the account balances. The allowance is based on PSE&G’s projection of accounts receivable aging, historical experience, economic factors and other currently available evidence, including the estimated impact of the ongoing coronavirus pandemic on the outstanding balances as of March 31, 2020. PSE&G’s electric bad debt expense is recoverable through its Societal Benefits Clause mechanism. The following provides a reconciliation of PSE&G’s allowance for credit losses for the three months ended March 31, 2020:
 
 
 
 
 
 
Three Months Ended March 31, 2020
 
 
 
Millions
 
 
Balance as of January 1, 2020 (A)
$
68

 
 
Utility Customer Accounts
 
 
 
     Provision for Expected Credit Losses
32

 
 
     Write-offs, net of Recoveries of $2 million
(20
)
 
 
Balance as of March 31, 2020
$
80

 
 
 
 
 
(A)
Includes an $8 million pre-tax increase at adoption of ASU 2016-13. See Note 2. Recent Accounting Standards.         
PSEG Power
PSEG Power generally collects consideration upon satisfaction of performance obligations, and therefore, PSEG Power had no material contract balances as of March 31, 2020 and December 31, 2019.
PSEG Power’s accounts receivable include amounts resulting from contracts with customers and other contracts which are out of scope of accounting guidance for revenues from contracts with customers. The majority of these accounts receivable are subject to master netting agreements. As a result, accounts receivable resulting from contracts with customers and receivables unrelated to contracts with customers are netted within Accounts Receivable and Accounts Payable on the Condensed Consolidated Balance Sheets.
PSEG Power’s accounts receivable consist mainly of revenues from wholesale load contracts and capacity sales which are executed in the different ISO regions. PSEG Power also sells energy and ancillary services directly to ISOs and other counterparties. In the wholesale energy markets in which PSEG Power operates, payment for services rendered and products transferred are typically due within 30 days of month of delivery. As such, there is little credit risk associated with these receivables. PSEG Power did not record an allowance for credit losses for these receivables as of March 31, 2020. PSEG Power monitors the status of its counterparties on an ongoing basis to assess whether there are any anticipated credit losses.
Other
PSEG LI did not have any material contract balances as of March 31, 2020 and December 31, 2019.
Remaining Performance Obligations under Fixed Consideration Contracts
PSEG Power and PSE&G primarily record revenues as allowed by the guidance, which states that if an entity has a right to consideration from a customer in an amount that corresponds directly with the value to the customer of the entity’s performance completed to date, the entity may recognize revenue in the amount to which the entity has a right to invoice. PSEG has future performance obligations under contracts with fixed consideration as follows:
PSEG Power
As previously stated, capacity transactions with ISOs are reported on a net basis dependent on PSEG Power’s monthly net sale or purchase position through the individual ISOs.
Capacity Revenues from the PJM Annual Base Residual and Incremental Auctions—The Base Residual Auction is generally conducted annually three years in advance of the operating period. The 2022/2023 auction has yet to be held and is not expected until the first half of 2021. PSEG Power expects to realize the following average capacity prices resulting from the base and incremental auctions, including unit specific bilateral contracts for previously cleared capacity obligations.
 
 
 
 
 
 
 
 
 
Delivery Year
 
$ per MW-Day
 
MW Cleared
 
 
June 2019 to May 2020
 
$116
 
8,300

 
 
June 2020 to May 2021
 
$179
 
7,300

 
 
June 2021 to May 2022
 
$182
 
6,900

 
 
 
 
 
 
 
 
Capacity Payments from the ISO New England Forward Capacity Market—The Forward Capacity Market (FCM) Auction is conducted annually three years in advance of the operating period. The table below includes PSEG Power’s cleared capacity in the FCM Auction for the Bridgeport Harbor Station 5 (BH5), which cleared the 2019/2020 auction at $231/MW-day for seven years, and the planned retirement of Bridgeport Harbor Station 3 (BH3) in May 2021. PSEG Power expects to realize the
following average capacity prices for capacity obligations to be satisfied resulting from the FCM auctions which have been completed through May 2024 and the seven-year rate lock for BH5 through May 2026:
 
 
 
 
 
 
 
 
 
Delivery Year
 
$ per MW-Day (A)
 
MW Cleared
 
 
June 2019 to May 2020
 
$231
 
1,330

 
 
June 2020 to May 2021
 
$195
 
1,330

 
 
June 2021 to May 2022
 
$192
 
950

 
 
June 2022 to May 2023
 
$179
 
950

 
 
June 2023 to May 2024
 
$141
 
1,060

 
 
June 2024 to May 2025
 
$231
 
480

 
 
June 2025 to May 2026
 
$231
 
480

 
 
 
 
 
 
 
 

(A)
Capacity cleared prices for BH5 through 2026 will be escalated based upon the Handy-Whitman Index. These adjustments are not included above.
Bilateral capacity contracts—Capacity obligations pursuant to contract terms through 2029 are anticipated to result in revenues totaling $161 million.
Other
The LIPA OSA is a 12-year services contract ending in 2025 with annual fixed and incentive components. The fixed fee for the provision of services thereunder in 2020 is $67 million and could increase each year based on the change in the Consumer Price Index (CPI).
PSEG Power [Member]  
Revenue from Contract with Customer [Text Block] Revenues
Nature of Goods and Services
The following is a description of principal activities by reportable segment from which PSEG, PSE&G and PSEG Power generate their revenues.
PSE&G
Revenues from Contracts with Customers
Electric and Gas Distribution and Transmission Revenues—PSE&G sells gas and electricity to customers under default commodity supply tariffs. PSE&G’s regulated electric and gas default commodity supply and distribution services are separate tariffs which are satisfied as the product(s) and/or services are delivered to the customer. The electric and gas commodity and delivery tariffs are recurring contracts in effect until modified through the regulatory approval process as appropriate. Revenue is recognized over time as the service is rendered to the customer. Included in PSE&G’s regulated revenues are unbilled electric and gas revenues which represent the estimated amount customers will be billed for services rendered from the most recent meter reading to the end of the respective accounting period.
PSE&G’s transmission revenues are earned under a separate tariff using a FERC-approved annual formula rate mechanism. The performance obligation of transmission service is satisfied and revenue is recognized as it is provided to the customer. The
formula rate mechanism provides for an annual filing of an estimated revenue requirement with rates effective January 1 of each year and a true-up to that estimate based on actual revenue requirements. The true-up mechanism is an alternative revenue which is outside the scope of revenue from contracts with customers.
Other Revenues from Contracts with Customers
Other revenues from contracts with customers, which are not a material source of PSE&G revenues, are generated primarily from appliance repair services and solar generation projects. The performance obligations under these contracts are satisfied and revenue is recognized as control of products is delivered or services are rendered.
Payment for services rendered and products transferred are typically due within 30 days of month of delivery.
Revenues Unrelated to Contracts with Customers
Other PSE&G revenues unrelated to contracts with customers are derived from alternative revenue mechanisms recorded pursuant to regulatory accounting guidance. These revenues, which include weather normalization, green energy program true-ups and transmission formula rate true-ups, are not a material source of PSE&G revenues.
PSEG Power
Revenues from Contracts with Customers
Electricity and Related Products—Wholesale and retail load contracts are executed in the different Independent System Operator (ISO) regions for the bundled supply of energy, capacity, renewable energy credits (RECs) and ancillary services representing PSEG Power’s performance obligations. Revenue for these contracts is recognized over time as the bundled service is provided to the customer. Transaction terms generally run from several months to three years. PSEG Power also sells to the ISOs energy and ancillary services which are separately transacted in the day-ahead or real-time energy markets. The energy and ancillary services performance obligations are typically satisfied over time as delivered and revenue is recognized accordingly. PSEG Power generally reports electricity sales and purchases conducted with those individual ISOs net on an hourly basis in either Operating Revenues or Energy Costs in its Condensed Consolidated Statements of Operations. The classification depends on the net hourly activity.
PSEG Power enters into capacity sales and capacity purchases through the ISOs. The transactions are reported on a net basis dependent on PSEG Power’s monthly net sale or purchase position through the individual ISOs. The performance obligations with the ISOs are satisfied over time upon delivery of the capacity and revenue is recognized accordingly. In addition to capacity sold through the ISOs, PSEG Power sells capacity through bilateral contracts and the related revenue is reported on a gross basis and recognized over time upon delivery of the capacity.
In April 2019, PSEG Power’s Salem 1, Salem 2 and Hope Creek nuclear plants were awarded Zero Emission Certificates (ZECs) by the BPU. These nuclear plants are expected to receive ZEC revenue for approximately three years, through May 2022, from the electric distribution companies (EDCs) in New Jersey. PSEG Power recognizes revenue when the units generate electricity, which is when the performance obligation is satisfied. These revenues are included in PJM Interconnection, L.L.C. (PJM) Sales in the following tables. See Note 4. Early Plant Retirements/Asset Dispositions for additional information.
Gas Contracts—PSEG Power sells wholesale natural gas, primarily through an index based full-requirements Basic Gas Supply Service (BGSS) contract with PSE&G to meet the gas supply requirements of PSE&G’s customers. The BGSS contract remains in effect unless terminated by either party with a two-year notice. The performance obligation is primarily delivery of gas which is satisfied over time. Revenue is recognized as gas is delivered. Based upon the availability of natural gas, storage and pipeline capacity beyond PSE&G’s daily needs, PSEG Power also sells gas and pipeline capacity to other counterparties under bilateral contracts. The performance obligation under these contracts is satisfied over time upon delivery of the gas or capacity, and revenue is recognized accordingly.
Other Revenues from Contracts with Customers
PSEG Power enters into bilateral contracts to sell solar power and solar RECs from its solar facilities. Contract terms range from 15 to 30 years. The performance obligations are generally solar power and RECs which are transferred to customers upon generation. Revenue is recognized upon generation of the solar power.
PSEG Power has entered into long-term contracts with LIPA for energy management and fuel procurement services. Revenue is recognized over time as services are rendered.
Revenues Unrelated to Contracts with Customers
PSEG Power’s revenues unrelated to contracts with customers include electric, gas and certain energy-related transactions accounted for in accordance with Derivatives and Hedging accounting guidance. See Note 13. Financial Risk Management
Activities for further discussion. PSEG Power is also a party to solar contracts that qualify as leases and are accounted for in accordance with lease accounting guidance.
Other
Revenues from Contracts with Customers
PSEG LI has a contract with LIPA which generates revenues. PSEG LI’s subsidiary, Long Island Electric Utility Servco, LLC (Servco) records costs which are recovered from LIPA and records the recovery of those costs as revenues when Servco is a principal in the transaction.
Revenues Unrelated to Contracts with Customers
Energy Holdings generates lease revenues which are recorded pursuant to lease accounting guidance.
Disaggregation of Revenues
 
 
 
 
 
 
 
 
 
 
 
 
 
 
PSE&G
 
PSEG Power
 
Other 
 
Eliminations
 
Consolidated
 
 
 
Millions
 
 
Three Months Ended March 31, 2020
 
 
 
 
 
 
 
 
 
 
 
Revenues from Contracts with Customers
 
 
 
 
 
 
 
 
 
 
 
Electric Distribution
$
649

 
$
—

 
$
—

 
$
—

 
$
649

 
 
Gas Distribution
731

 
—

 
—

 
(2
)
 
729

 
 
Transmission
366

 
—

 
—

 
—

 
366

 
 
Electricity and Related Product Sales
 
 
 
 
 
 
 
 
 
 
 
PJM
 
 
 
 
 
 
 
 
 
 
 
Third-Party Sales
—

 
368

 
—

 
—

 
368

 
 
Sales to Affiliates
—

 
121

 
—

 
(121
)
 
—

 
 
New York ISO
—

 
25

 
—

 
—

 
25

 
 
ISO New England
—

 
48

 
—

 
—

 
48

 
 
Gas Sales
 
 
 
 
 
 
 
 
 
 
 
Third-Party Sales
—

 
29

 
—

 
—

 
29

 
 
Sales to Affiliates
—

 
354

 
—

 
(354
)
 
—

 
 
Other Revenues from Contracts with Customers (A)
82

 
10

 
144

 
(1
)
 
235

 
 
Total Revenues from Contracts with Customers
1,828

 
955

 
144

 
(478
)
 
2,449

 
 
Revenues Unrelated to Contracts with Customers (B)
55

 
265

 
12

 
—

 
332

 
 
Total Operating Revenues
$
1,883

 
$
1,220

 
$
156

 
$
(478
)
 
$
2,781

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
PSE&G
 
PSEG Power
 
Other 
 
Eliminations
 
Consolidated
 
 
 
Millions
 
 
Three Months Ended March 31, 2019
 
 
 
 
 
 
 
 
 
 
 
Revenues from Contracts with Customers
 
 
 
 
 
 
 
 
 
 
 
Electric Distribution
$
742

 
$
—

 
$
—

 
$
—

 
$
742

 
 
Gas Distribution
931

 
—

 
—

 
(3
)
 
928

 
 
Transmission
288

 
—

 
—

 
—

 
288

 
 
Electricity and Related Product Sales
 
 
 
 
 
 
 
 
 
 
 
 PJM
 
 
 
 
 
 
 
 
 
 
 
Third-Party Sales
—

 
515

 
—

 
—

 
515

 
 
         Sales to Affiliates
—

 
126

 
—

 
(126
)
 
—

 
 
New York ISO
—

 
41

 
—

 
—

 
41

 
 
ISO New England
—

 
21

 
—

 
—

 
21

 
 
Gas Sales
 
 
 
 
 
 
 
 
 
 
 
Third-Party Sales
—

 
47

 
—

 
—

 
47

 
 
Sales to Affiliates
—

 
479

 
—

 
(479
)
 
—

 
 
Other Revenues from Contracts with Customers (A)
64

 
10

 
131

 
(1
)
 
204

 
 
Total Revenues from Contracts with Customers
2,025

 
1,239

 
131

 
(609
)
 
2,786

 
 
Revenues Unrelated to Contracts with Customers (B)
7

 
177

 
10

 
—

 
194

 
 
Total Operating Revenues
$
2,032

 
$
1,416

 
$
141

 
$
(609
)
 
$
2,980

 
 
 
 
 
 
 
 
 
 
 
 
 
(A)
Includes primarily revenues from appliance repair services at PSE&G, solar power projects and energy management and fuel service contracts with LIPA at PSEG Power, and PSEG LI’s OSA with LIPA in Other.
(B)
Includes primarily alternative revenues at PSE&G, derivative contracts and lease contracts at PSEG Power, and lease contracts in Other.
Contract Balances
PSE&G
PSE&G did not have any material contract balances (rights to consideration for services already provided or obligations to provide services in the future for consideration already received) as of March 31, 2020 and December 31, 2019. Substantially all of PSE&G’s accounts receivable and unbilled revenues result from contracts with customers that are priced at tariff rates. Allowances represented approximately seven percent and six percent of accounts receivable (including unbilled revenues in 2020) as of March 31, 2020 and December 31, 2019, respectively. As of December 31, 2019, there was no allowance for unbilled revenues. Effective January 1, 2020, PSE&G adopted ASU 2016-13 and recorded an allowance for unbilled revenues. See Note 2. Recent Accounting Standards.
Accounts Receivable—Allowance for Credit Losses
PSE&G’s accounts receivable, including unbilled revenues, is primarily comprised of utility customer receivables for the provision of electric and gas service and appliance services, and are reported in the balance sheet as gross outstanding amounts adjusted for an allowance for credit losses. The allowance for credit losses reflects PSE&G’s best estimate of losses on the account balances. The allowance is based on PSE&G’s projection of accounts receivable aging, historical experience, economic factors and other currently available evidence, including the estimated impact of the ongoing coronavirus pandemic on the outstanding balances as of March 31, 2020. PSE&G’s electric bad debt expense is recoverable through its Societal Benefits Clause mechanism. The following provides a reconciliation of PSE&G’s allowance for credit losses for the three months ended March 31, 2020:
 
 
 
 
 
 
Three Months Ended March 31, 2020
 
 
 
Millions
 
 
Balance as of January 1, 2020 (A)
$
68

 
 
Utility Customer Accounts
 
 
 
     Provision for Expected Credit Losses
32

 
 
     Write-offs, net of Recoveries of $2 million
(20
)
 
 
Balance as of March 31, 2020
$
80

 
 
 
 
 
(A)
Includes an $8 million pre-tax increase at adoption of ASU 2016-13. See Note 2. Recent Accounting Standards.         
PSEG Power
PSEG Power generally collects consideration upon satisfaction of performance obligations, and therefore, PSEG Power had no material contract balances as of March 31, 2020 and December 31, 2019.
PSEG Power’s accounts receivable include amounts resulting from contracts with customers and other contracts which are out of scope of accounting guidance for revenues from contracts with customers. The majority of these accounts receivable are subject to master netting agreements. As a result, accounts receivable resulting from contracts with customers and receivables unrelated to contracts with customers are netted within Accounts Receivable and Accounts Payable on the Condensed Consolidated Balance Sheets.
PSEG Power’s accounts receivable consist mainly of revenues from wholesale load contracts and capacity sales which are executed in the different ISO regions. PSEG Power also sells energy and ancillary services directly to ISOs and other counterparties. In the wholesale energy markets in which PSEG Power operates, payment for services rendered and products transferred are typically due within 30 days of month of delivery. As such, there is little credit risk associated with these receivables. PSEG Power did not record an allowance for credit losses for these receivables as of March 31, 2020. PSEG Power monitors the status of its counterparties on an ongoing basis to assess whether there are any anticipated credit losses.
Other
PSEG LI did not have any material contract balances as of March 31, 2020 and December 31, 2019.
Remaining Performance Obligations under Fixed Consideration Contracts
PSEG Power and PSE&G primarily record revenues as allowed by the guidance, which states that if an entity has a right to consideration from a customer in an amount that corresponds directly with the value to the customer of the entity’s performance completed to date, the entity may recognize revenue in the amount to which the entity has a right to invoice. PSEG has future performance obligations under contracts with fixed consideration as follows:
PSEG Power
As previously stated, capacity transactions with ISOs are reported on a net basis dependent on PSEG Power’s monthly net sale or purchase position through the individual ISOs.
Capacity Revenues from the PJM Annual Base Residual and Incremental Auctions—The Base Residual Auction is generally conducted annually three years in advance of the operating period. The 2022/2023 auction has yet to be held and is not expected until the first half of 2021. PSEG Power expects to realize the following average capacity prices resulting from the base and incremental auctions, including unit specific bilateral contracts for previously cleared capacity obligations.
 
 
 
 
 
 
 
 
 
Delivery Year
 
$ per MW-Day
 
MW Cleared
 
 
June 2019 to May 2020
 
$116
 
8,300

 
 
June 2020 to May 2021
 
$179
 
7,300

 
 
June 2021 to May 2022
 
$182
 
6,900

 
 
 
 
 
 
 
 
Capacity Payments from the ISO New England Forward Capacity Market—The Forward Capacity Market (FCM) Auction is conducted annually three years in advance of the operating period. The table below includes PSEG Power’s cleared capacity in the FCM Auction for the Bridgeport Harbor Station 5 (BH5), which cleared the 2019/2020 auction at $231/MW-day for seven years, and the planned retirement of Bridgeport Harbor Station 3 (BH3) in May 2021. PSEG Power expects to realize the
following average capacity prices for capacity obligations to be satisfied resulting from the FCM auctions which have been completed through May 2024 and the seven-year rate lock for BH5 through May 2026:
 
 
 
 
 
 
 
 
 
Delivery Year
 
$ per MW-Day (A)
 
MW Cleared
 
 
June 2019 to May 2020
 
$231
 
1,330

 
 
June 2020 to May 2021
 
$195
 
1,330

 
 
June 2021 to May 2022
 
$192
 
950

 
 
June 2022 to May 2023
 
$179
 
950

 
 
June 2023 to May 2024
 
$141
 
1,060

 
 
June 2024 to May 2025
 
$231
 
480

 
 
June 2025 to May 2026
 
$231
 
480

 
 
 
 
 
 
 
 

(A)
Capacity cleared prices for BH5 through 2026 will be escalated based upon the Handy-Whitman Index. These adjustments are not included above.
Bilateral capacity contracts—Capacity obligations pursuant to contract terms through 2029 are anticipated to result in revenues totaling $161 million.
Other
The LIPA OSA is a 12-year services contract ending in 2025 with annual fixed and incentive components. The fixed fee for the provision of services thereunder in 2020 is $67 million and could increase each year based on the change in the Consumer Price Index (CPI).
v3.20.1
Early Plant Retirements/Asset Dispositions Early Plant Retirements/Asset Dispositions
 3 Months Ended
Mar. 31, 2020
Early Plant Retirements/Asset Dispositions [Line Items]  
Early Plant Retirements/Asset Dispositions Early Plant Retirements/Asset Dispositions
Nuclear
In April 2019, PSEG Power’s Salem 1, Salem 2 and Hope Creek nuclear plants were awarded ZECs by the BPU. Pursuant to a process established by the BPU, ZECs are purchased from selected nuclear plants and recovered through a non-bypassable distribution charge in the amount of $0.004 per kilowatt-hour (KWh) used (which is equivalent to approximately $10 per megawatt hour (MWh) generated in payments to selected nuclear plants (ZEC payment)). These nuclear plants are expected to receive ZEC revenue for approximately three years, through May 2022, and will be obligated to maintain operations during that period, subject to exceptions specified in the ZEC legislation. PSEG Power has and will continue to recognize revenue monthly as the nuclear plants generate electricity and satisfy their performance obligations. The ZEC payment may be adjusted by the BPU (a) at any time to offset environmental or fuel diversity payments that a selected nuclear plant may receive from another source or (b) at certain times specified in the ZEC legislation if the BPU determines that the purposes of the ZEC legislation can be achieved through a reduced charge that will nonetheless be sufficient to achieve the state’s air quality and other environmental objectives by preventing the retirement of nuclear plants. The BPU’s decision awarding ZECs has been appealed by the New Jersey Division of Rate Counsel. PSEG cannot predict the outcome of this matter. The BPU is expected to issue an order in May 2020 outlining the process for applying for ZECs for the next three-year eligibility period and is expected to issue a decision regarding any ZEC applications and any change in the amount of future ZEC payments by April 2021. PSEG Power is not aware of any changes that would materially affect its ability to establish eligibility to be awarded ZECs under the application requirements that resulted in the award of ZECs to Salem 1, Salem 2 and Hope Creek in April 2019. However, PSEG Power cannot predict whether the BPU will change the application requirements or whether other plants besides Salem 1, Salem 2 and Hope Creek will apply for ZECs in the future. In the event that (i) the ZEC program is overturned or otherwise materially adversely modified through legal process, (ii) the terms and conditions of the subsequent period under the ZEC program, including the amount of ZEC payments that may be awarded, materially differ from those of the current ZEC period, or (iii) any of the Salem 1, Salem 2 and Hope Creek plants is not awarded ZEC payments by the BPU and does not otherwise experience a material financial change, PSEG Power will take all necessary steps to retire all of these plants subsequent to the initial ZEC period at or prior to a scheduled refueling outage. Alternatively, if all of the Salem 1, Salem 2 and Hope Creek plants are selected to continue to receive ZEC payments but the financial condition of the plants is materially adversely impacted by changes in commodity prices, FERC’s changes to the capacity market construct (absent sufficient capacity revenues provided under a program approved by the BPU in accordance with a FERC-authorized capacity mechanism), or, in the case of the Salem nuclear plants, decisions by the EPA and state environmental regulators regarding the implementation of Section 316(b) of the Clean Water Act and related state regulations, or other factors, PSEG Power would still take all necessary steps to retire all of these plants. The costs and accounting charges associated with any such retirement, which may include,
among other things, accelerated Depreciation and Amortization Expense, impairment charges, potential penalties associated with the early termination of capacity obligations and fuel contracts, accelerated asset retirement costs, severance costs, environmental remediation costs and, in certain circumstances potential additional funding of the Nuclear Decommissioning Trust Fund, would be material to both PSEG and PSEG Power.
Fossil
In February 2020, PSEG Fossil LLC (Fossil), a direct wholly owned subsidiary of PSEG Power, entered into a Purchase Agreement with Yards Creek Energy, LLC (Yards Creek Energy), an affiliate of LS Power, relating to the sale by Fossil of its ownership interests in the Yards Creek generation facility and related assets, including the assumption by Yards Creek Energy of related liabilities. The transaction is expected to close during the second half of 2020, subject to customary closing conditions and regulatory approvals. As a result, $28 million of Property, Plant and Equipment has been classified as Assets Held for Sale on PSEG’s and PSEG Power’s Condensed Consolidated Balance Sheets as of March 31, 2020 and December 31, 2019.
PSEG Power [Member]  
Early Plant Retirements/Asset Dispositions [Line Items]  
Early Plant Retirements/Asset Dispositions Early Plant Retirements/Asset Dispositions
Nuclear
In April 2019, PSEG Power’s Salem 1, Salem 2 and Hope Creek nuclear plants were awarded ZECs by the BPU. Pursuant to a process established by the BPU, ZECs are purchased from selected nuclear plants and recovered through a non-bypassable distribution charge in the amount of $0.004 per kilowatt-hour (KWh) used (which is equivalent to approximately $10 per megawatt hour (MWh) generated in payments to selected nuclear plants (ZEC payment)). These nuclear plants are expected to receive ZEC revenue for approximately three years, through May 2022, and will be obligated to maintain operations during that period, subject to exceptions specified in the ZEC legislation. PSEG Power has and will continue to recognize revenue monthly as the nuclear plants generate electricity and satisfy their performance obligations. The ZEC payment may be adjusted by the BPU (a) at any time to offset environmental or fuel diversity payments that a selected nuclear plant may receive from another source or (b) at certain times specified in the ZEC legislation if the BPU determines that the purposes of the ZEC legislation can be achieved through a reduced charge that will nonetheless be sufficient to achieve the state’s air quality and other environmental objectives by preventing the retirement of nuclear plants. The BPU’s decision awarding ZECs has been appealed by the New Jersey Division of Rate Counsel. PSEG cannot predict the outcome of this matter. The BPU is expected to issue an order in May 2020 outlining the process for applying for ZECs for the next three-year eligibility period and is expected to issue a decision regarding any ZEC applications and any change in the amount of future ZEC payments by April 2021. PSEG Power is not aware of any changes that would materially affect its ability to establish eligibility to be awarded ZECs under the application requirements that resulted in the award of ZECs to Salem 1, Salem 2 and Hope Creek in April 2019. However, PSEG Power cannot predict whether the BPU will change the application requirements or whether other plants besides Salem 1, Salem 2 and Hope Creek will apply for ZECs in the future. In the event that (i) the ZEC program is overturned or otherwise materially adversely modified through legal process, (ii) the terms and conditions of the subsequent period under the ZEC program, including the amount of ZEC payments that may be awarded, materially differ from those of the current ZEC period, or (iii) any of the Salem 1, Salem 2 and Hope Creek plants is not awarded ZEC payments by the BPU and does not otherwise experience a material financial change, PSEG Power will take all necessary steps to retire all of these plants subsequent to the initial ZEC period at or prior to a scheduled refueling outage. Alternatively, if all of the Salem 1, Salem 2 and Hope Creek plants are selected to continue to receive ZEC payments but the financial condition of the plants is materially adversely impacted by changes in commodity prices, FERC’s changes to the capacity market construct (absent sufficient capacity revenues provided under a program approved by the BPU in accordance with a FERC-authorized capacity mechanism), or, in the case of the Salem nuclear plants, decisions by the EPA and state environmental regulators regarding the implementation of Section 316(b) of the Clean Water Act and related state regulations, or other factors, PSEG Power would still take all necessary steps to retire all of these plants. The costs and accounting charges associated with any such retirement, which may include,
among other things, accelerated Depreciation and Amortization Expense, impairment charges, potential penalties associated with the early termination of capacity obligations and fuel contracts, accelerated asset retirement costs, severance costs, environmental remediation costs and, in certain circumstances potential additional funding of the Nuclear Decommissioning Trust Fund, would be material to both PSEG and PSEG Power.
Fossil
In February 2020, PSEG Fossil LLC (Fossil), a direct wholly owned subsidiary of PSEG Power, entered into a Purchase Agreement with Yards Creek Energy, LLC (Yards Creek Energy), an affiliate of LS Power, relating to the sale by Fossil of its ownership interests in the Yards Creek generation facility and related assets, including the assumption by Yards Creek Energy of related liabilities. The transaction is expected to close during the second half of 2020, subject to customary closing conditions and regulatory approvals. As a result, $28 million of Property, Plant and Equipment has been classified as Assets Held for Sale on PSEG’s and PSEG Power’s Condensed Consolidated Balance Sheets as of March 31, 2020 and December 31, 2019.
v3.20.1
Variable Interest Entities (VIEs)
 3 Months Ended
Mar. 31, 2020
Variable Interest Entity [Line Items]  
Variable Interest Entities (VIEs) Variable Interest Entity (VIE)
VIE for which PSEG LI is the Primary Beneficiary
PSEG LI consolidates Servco, a marginally capitalized VIE, which was created for the purpose of operating LIPA’s T&D system in Long Island, New York as well as providing administrative support functions to LIPA. PSEG LI is the primary beneficiary of Servco because it directs the operations of Servco, the activity that most significantly impacts Servco’s economic performance and it has the obligation to absorb losses of Servco that could potentially be significant to Servco. Such losses would be immaterial to PSEG.
Pursuant to the OSA, Servco’s operating costs are reimbursable entirely by LIPA, and therefore, PSEG LI’s risk is limited related to the activities of Servco. PSEG LI has no current obligation to provide direct financial support to Servco. In addition to reimbursement of Servco’s operating costs as provided for in the OSA, PSEG LI receives an annual contract management fee. PSEG LI’s annual contractual management fee, in certain situations, could be partially offset by Servco’s annual storm costs not approved by the Federal Emergency Management Agency, limited contingent liabilities and penalties for failing to meet certain performance metrics.
For transactions in which Servco acts as principal and controls the services provided to LIPA, such as transactions with its employees for labor and labor-related activities, including pension and OPEB-related transactions, Servco records revenues and the related pass-through expenditures separately in Operating Revenues and O&M Expense, respectively. Servco recorded $127 million and $115 million for the three months ended March 31, 2020 and 2019, respectively, of O&M costs, the full reimbursement of which was reflected in Operating Revenues. For transactions in which Servco acts as an agent for LIPA, it records revenues and the related expenses on a net basis, resulting in no impact on PSEG’s Condensed Consolidated Statement of Operations.
v3.20.1
Rate Filings
 3 Months Ended
Mar. 31, 2020
Regulatory Assets [Line Items]  
Rate Filings Rate Filings
This Note should be read in conjunction with Note 7. Regulatory Assets and Liabilities to the Consolidated Financial Statements in the Annual Report on Form 10-K for the year ended December 31, 2019.
In addition to items previously reported in the Annual Report on Form 10-K, a significant currently pending rate filing with the BPU is as follows:
In 2019, the BPU approved an order establishing a Transition Incentive Program to serve as a bridge between the existing Solar Renewable Energy Certificate (SREC) program and a to-be-established successor program and created a new incentive mechanism known as Transition Renewable Incentive Certificates (TRECs). TRECs will be awarded to qualifying solar projects under the new program. In the TREC order, the BPU directed the New Jersey EDCs to engage a TREC Administrator to acquire, on behalf of the EDCs, TRECs produced by eligible solar projects, which will be funded through a TREC charge to electric customers collected by the EDCs. The order allows the EDCs to recover their costs associated with the TREC program in an annual filing, subject to approval by the BPU. 
On April 30, 2020, PSE&G filed for increased rates of approximately $23 million annually for recovery of its expected share of TREC costs. PSE&G’s filing proposes to recover the revenue requirements associated with the TREC Program as a new component of PSE&G’s existing electric Green Program Recovery Charges (GPRC). This matter is pending.
Public Service Electric and Gas Company [Member]  
Regulatory Assets [Line Items]  
Rate Filings Rate Filings
This Note should be read in conjunction with Note 7. Regulatory Assets and Liabilities to the Consolidated Financial Statements in the Annual Report on Form 10-K for the year ended December 31, 2019.
In addition to items previously reported in the Annual Report on Form 10-K, a significant currently pending rate filing with the BPU is as follows:
In 2019, the BPU approved an order establishing a Transition Incentive Program to serve as a bridge between the existing Solar Renewable Energy Certificate (SREC) program and a to-be-established successor program and created a new incentive mechanism known as Transition Renewable Incentive Certificates (TRECs). TRECs will be awarded to qualifying solar projects under the new program. In the TREC order, the BPU directed the New Jersey EDCs to engage a TREC Administrator to acquire, on behalf of the EDCs, TRECs produced by eligible solar projects, which will be funded through a TREC charge to electric customers collected by the EDCs. The order allows the EDCs to recover their costs associated with the TREC program in an annual filing, subject to approval by the BPU. 
On April 30, 2020, PSE&G filed for increased rates of approximately $23 million annually for recovery of its expected share of TREC costs. PSE&G’s filing proposes to recover the revenue requirements associated with the TREC Program as a new component of PSE&G’s existing electric Green Program Recovery Charges (GPRC). This matter is pending.
v3.20.1
Leases
 3 Months Ended
Mar. 31, 2020
Leases Leases
PSEG and its subsidiaries are both a lessor and a lessee in operating leases. As of March 31, 2020, PSEG and its subsidiaries were lessors for leases classified as operating leases or leveraged leases. See Note 8. Financing Receivables. There was no significant change in amounts reported in Note 8. Leases in the Annual Report on Form 10-K for the year ended December 31, 2019 for operating leases in which PSEG and its subsidiaries are lessees.
PSEG and its subsidiaries, as lessors, have lease agreements with lease and non-lease components, which are primarily related to generating facilities.
Rental income from these leases is included in Operating Revenues.
PSEG Power
Certain of PSEG Power’s sales agreements related to its solar generating plants qualify as operating leases with remaining terms through 2043 with no extension terms. Lease income is based on solar energy generation; therefore, all rental income is variable under these leases.
Other
Energy Holdings is the lessor in leveraged leases. Leveraged lease accounting guidance is grandfathered for existing leveraged leases. If modified after January 1, 2019, such leveraged leases will be accounted for as operating, direct financing, or sales-type leases.
Energy Holdings is the lessor in an operating lease for a domestic energy generation facility with a remaining term through 2036. Energy Holdings was previously the lessor in operating leases for real estate assets which were sold in March 2020.
The following is the operating lease income for PSEG Power and Energy Holdings for the three months ended March 31, 2020 and 2019:
 
 
 
 
 
 
 
 
 
 
PSEG Power
 
Energy Holdings
 
Total
 
 
 
Millions
 
 
Operating Lease Income
 
 
 
 


 
 
Three Months Ended March 31, 2020
 
 
 
 
 
 
 
Fixed Lease Income
$
—

 
$
5

 
$
5

 
 
Variable Lease Income
5

 
—

 
5

 
 
Total Operating Lease Income
$
5

 
$
5

 
$
10

 
 
Three Months Ended March 31, 2019
 
 
 
 
 
 
 
Fixed Lease Income
$
—

 
$
5

 
$
5

 
 
Variable Lease Income
4

 
—

 
4

 
 
Total Operating Lease Income
$
4

 
$
5

 
$
9

 
 
 
 
 
 
 
 
 
Leases Leases
PSEG and its subsidiaries are both a lessor and a lessee in operating leases. As of March 31, 2020, PSEG and its subsidiaries were lessors for leases classified as operating leases or leveraged leases. See Note 8. Financing Receivables. There was no significant change in amounts reported in Note 8. Leases in the Annual Report on Form 10-K for the year ended December 31, 2019 for operating leases in which PSEG and its subsidiaries are lessees.
PSEG and its subsidiaries, as lessors, have lease agreements with lease and non-lease components, which are primarily related to generating facilities.
Rental income from these leases is included in Operating Revenues.
PSEG Power
Certain of PSEG Power’s sales agreements related to its solar generating plants qualify as operating leases with remaining terms through 2043 with no extension terms. Lease income is based on solar energy generation; therefore, all rental income is variable under these leases.
Other
Energy Holdings is the lessor in leveraged leases. Leveraged lease accounting guidance is grandfathered for existing leveraged leases. If modified after January 1, 2019, such leveraged leases will be accounted for as operating, direct financing, or sales-type leases.
Energy Holdings is the lessor in an operating lease for a domestic energy generation facility with a remaining term through 2036. Energy Holdings was previously the lessor in operating leases for real estate assets which were sold in March 2020.
The following is the operating lease income for PSEG Power and Energy Holdings for the three months ended March 31, 2020 and 2019:
 
 
 
 
 
 
 
 
 
 
PSEG Power
 
Energy Holdings
 
Total
 
 
 
Millions
 
 
Operating Lease Income
 
 
 
 


 
 
Three Months Ended March 31, 2020
 
 
 
 
 
 
 
Fixed Lease Income
$
—

 
$
5

 
$
5

 
 
Variable Lease Income
5

 
—

 
5

 
 
Total Operating Lease Income
$
5

 
$
5

 
$
10

 
 
Three Months Ended March 31, 2019
 
 
 
 
 
 
 
Fixed Lease Income
$
—

 
$
5

 
$
5

 
 
Variable Lease Income
4

 
—

 
4

 
 
Total Operating Lease Income
$
4

 
$
5

 
$
9

 
 
 
 
 
 
 
 
 
Public Service Electric and Gas Company [Member]  
Leases Leases
PSEG and its subsidiaries are both a lessor and a lessee in operating leases. As of March 31, 2020, PSEG and its subsidiaries were lessors for leases classified as operating leases or leveraged leases. See Note 8. Financing Receivables. There was no significant change in amounts reported in Note 8. Leases in the Annual Report on Form 10-K for the year ended December 31, 2019 for operating leases in which PSEG and its subsidiaries are lessees.
PSEG and its subsidiaries, as lessors, have lease agreements with lease and non-lease components, which are primarily related to generating facilities.
Rental income from these leases is included in Operating Revenues.
PSEG Power
Certain of PSEG Power’s sales agreements related to its solar generating plants qualify as operating leases with remaining terms through 2043 with no extension terms. Lease income is based on solar energy generation; therefore, all rental income is variable under these leases.
Other
Energy Holdings is the lessor in leveraged leases. Leveraged lease accounting guidance is grandfathered for existing leveraged leases. If modified after January 1, 2019, such leveraged leases will be accounted for as operating, direct financing, or sales-type leases.
Energy Holdings is the lessor in an operating lease for a domestic energy generation facility with a remaining term through 2036. Energy Holdings was previously the lessor in operating leases for real estate assets which were sold in March 2020.
The following is the operating lease income for PSEG Power and Energy Holdings for the three months ended March 31, 2020 and 2019:
 
 
 
 
 
 
 
 
 
 
PSEG Power
 
Energy Holdings
 
Total
 
 
 
Millions
 
 
Operating Lease Income
 
 
 
 


 
 
Three Months Ended March 31, 2020
 
 
 
 
 
 
 
Fixed Lease Income
$
—

 
$
5

 
$
5

 
 
Variable Lease Income
5

 
—

 
5

 
 
Total Operating Lease Income
$
5

 
$
5

 
$
10

 
 
Three Months Ended March 31, 2019
 
 
 
 
 
 
 
Fixed Lease Income
$
—

 
$
5

 
$
5

 
 
Variable Lease Income
4

 
—

 
4

 
 
Total Operating Lease Income
$
4

 
$
5

 
$
9

 
 
 
 
 
 
 
 
 
Leases Leases
PSEG and its subsidiaries are both a lessor and a lessee in operating leases. As of March 31, 2020, PSEG and its subsidiaries were lessors for leases classified as operating leases or leveraged leases. See Note 8. Financing Receivables. There was no significant change in amounts reported in Note 8. Leases in the Annual Report on Form 10-K for the year ended December 31, 2019 for operating leases in which PSEG and its subsidiaries are lessees.
PSEG and its subsidiaries, as lessors, have lease agreements with lease and non-lease components, which are primarily related to generating facilities.
Rental income from these leases is included in Operating Revenues.
PSEG Power
Certain of PSEG Power’s sales agreements related to its solar generating plants qualify as operating leases with remaining terms through 2043 with no extension terms. Lease income is based on solar energy generation; therefore, all rental income is variable under these leases.
Other
Energy Holdings is the lessor in leveraged leases. Leveraged lease accounting guidance is grandfathered for existing leveraged leases. If modified after January 1, 2019, such leveraged leases will be accounted for as operating, direct financing, or sales-type leases.
Energy Holdings is the lessor in an operating lease for a domestic energy generation facility with a remaining term through 2036. Energy Holdings was previously the lessor in operating leases for real estate assets which were sold in March 2020.
The following is the operating lease income for PSEG Power and Energy Holdings for the three months ended March 31, 2020 and 2019:
 
 
 
 
 
 
 
 
 
 
PSEG Power
 
Energy Holdings
 
Total
 
 
 
Millions
 
 
Operating Lease Income
 
 
 
 


 
 
Three Months Ended March 31, 2020
 
 
 
 
 
 
 
Fixed Lease Income
$
—

 
$
5

 
$
5

 
 
Variable Lease Income
5

 
—

 
5

 
 
Total Operating Lease Income
$
5

 
$
5

 
$
10

 
 
Three Months Ended March 31, 2019
 
 
 
 
 
 
 
Fixed Lease Income
$
—

 
$
5

 
$
5

 
 
Variable Lease Income
4

 
—

 
4

 
 
Total Operating Lease Income
$
4

 
$
5

 
$
9

 
 
 
 
 
 
 
 
 
PSEG Power [Member]  
Leases Leases
PSEG and its subsidiaries are both a lessor and a lessee in operating leases. As of March 31, 2020, PSEG and its subsidiaries were lessors for leases classified as operating leases or leveraged leases. See Note 8. Financing Receivables. There was no significant change in amounts reported in Note 8. Leases in the Annual Report on Form 10-K for the year ended December 31, 2019 for operating leases in which PSEG and its subsidiaries are lessees.
PSEG and its subsidiaries, as lessors, have lease agreements with lease and non-lease components, which are primarily related to generating facilities.
Rental income from these leases is included in Operating Revenues.
PSEG Power
Certain of PSEG Power’s sales agreements related to its solar generating plants qualify as operating leases with remaining terms through 2043 with no extension terms. Lease income is based on solar energy generation; therefore, all rental income is variable under these leases.
Other
Energy Holdings is the lessor in leveraged leases. Leveraged lease accounting guidance is grandfathered for existing leveraged leases. If modified after January 1, 2019, such leveraged leases will be accounted for as operating, direct financing, or sales-type leases.
Energy Holdings is the lessor in an operating lease for a domestic energy generation facility with a remaining term through 2036. Energy Holdings was previously the lessor in operating leases for real estate assets which were sold in March 2020.
The following is the operating lease income for PSEG Power and Energy Holdings for the three months ended March 31, 2020 and 2019:
 
 
 
 
 
 
 
 
 
 
PSEG Power
 
Energy Holdings
 
Total
 
 
 
Millions
 
 
Operating Lease Income
 
 
 
 


 
 
Three Months Ended March 31, 2020
 
 
 
 
 
 
 
Fixed Lease Income
$
—

 
$
5

 
$
5

 
 
Variable Lease Income
5

 
—

 
5

 
 
Total Operating Lease Income
$
5

 
$
5

 
$
10

 
 
Three Months Ended March 31, 2019
 
 
 
 
 
 
 
Fixed Lease Income
$
—

 
$
5

 
$
5

 
 
Variable Lease Income
4

 
—

 
4

 
 
Total Operating Lease Income
$
4

 
$
5

 
$
9

 
 
 
 
 
 
 
 
 
Leases Leases
PSEG and its subsidiaries are both a lessor and a lessee in operating leases. As of March 31, 2020, PSEG and its subsidiaries were lessors for leases classified as operating leases or leveraged leases. See Note 8. Financing Receivables. There was no significant change in amounts reported in Note 8. Leases in the Annual Report on Form 10-K for the year ended December 31, 2019 for operating leases in which PSEG and its subsidiaries are lessees.
PSEG and its subsidiaries, as lessors, have lease agreements with lease and non-lease components, which are primarily related to generating facilities.
Rental income from these leases is included in Operating Revenues.
PSEG Power
Certain of PSEG Power’s sales agreements related to its solar generating plants qualify as operating leases with remaining terms through 2043 with no extension terms. Lease income is based on solar energy generation; therefore, all rental income is variable under these leases.
Other
Energy Holdings is the lessor in leveraged leases. Leveraged lease accounting guidance is grandfathered for existing leveraged leases. If modified after January 1, 2019, such leveraged leases will be accounted for as operating, direct financing, or sales-type leases.
Energy Holdings is the lessor in an operating lease for a domestic energy generation facility with a remaining term through 2036. Energy Holdings was previously the lessor in operating leases for real estate assets which were sold in March 2020.
The following is the operating lease income for PSEG Power and Energy Holdings for the three months ended March 31, 2020 and 2019:
 
 
 
 
 
 
 
 
 
 
PSEG Power
 
Energy Holdings
 
Total
 
 
 
Millions
 
 
Operating Lease Income
 
 
 
 


 
 
Three Months Ended March 31, 2020
 
 
 
 
 
 
 
Fixed Lease Income
$
—

 
$
5

 
$
5

 
 
Variable Lease Income
5

 
—

 
5

 
 
Total Operating Lease Income
$
5

 
$
5

 
$
10

 
 
Three Months Ended March 31, 2019
 
 
 
 
 
 
 
Fixed Lease Income
$
—

 
$
5

 
$
5

 
 
Variable Lease Income
4

 
—

 
4

 
 
Total Operating Lease Income
$
4

 
$
5

 
$
9

 
 
 
 
 
 
 
 
 
v3.20.1
Financing Receivables
 3 Months Ended
Mar. 31, 2020
Schedule of Financial Receivables [Line Items]  
Financing Receivables Financing Receivables
PSE&G
PSE&G’s Solar Loan Programs are designed to help finance the installation of solar power systems throughout its electric service area. Interest income on the loans is recorded on an accrual basis. The loans are paid back with SRECs generated from the related installed solar electric system. PSE&G uses collection experience as a credit quality indicator for its Solar Loan Programs and conducts a comprehensive credit review for all prospective borrowers. As of March 31, 2020, none of the solar loans were impaired; however, in the event of a loan default or if a loan becomes impaired, the basis of the solar loan would be recovered through a regulatory recovery mechanism. None of the solar loans are delinquent and no loans are currently expected to be delinquent in light of the payment mechanism. Therefore, no current credit losses have been recorded for Solar Loan Programs I, II and III. A substantial portion of these amounts are noncurrent and reported in Long-Term Investments on PSEG’s and PSE&G’s Condensed Consolidated Balance Sheets. The following table reflects the outstanding loans by class of customer, none of which would be considered “non-performing.”
 
 
 
 
 
 
 
 
Outstanding Loans by Class of Customer
 
 
 
 
As of
 
As of
 
 
Consumer Loans
 
March 31,
2020
 
December 31,
2019
 
 
 
 
Millions
 
 
Commercial/Industrial
 
$
154

 
$
156

 
 
Residential
 
8

 
8

 
 
Total
 
$
162

 
$
164

 
 
Current Portion (included in Accounts Receivable)
 
(26
)
 
(28
)
 
 
Noncurrent Portion (included in Long-Term Investments)
 
$
136

 
$
136

 
 
 
 
 
 
 
 
The solar loans originated under three Solar Loan Programs comprised as follows:
 
 
 
 
 
 
 
 
 
 
 
 
Programs
 
Balance as of March 31, 2020
 
Funding Provided
 
Residential Loan Term
 
Non-Residential Loan Term
 
 
 
 
Millions
 
 
 
 
 
 
 
 
Solar Loan I
 
$
26

 
prior to 2013
 
10 years
 
15 years
 
 
Solar Loan II
 
82

 
prior to 2015
 
10 years
 
15 years
 
 
Solar Loan III
 
54

 
largely funded as of December 31, 2019
 
10 years
 
10 years
 
 
Total
 
$
162

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

The average life of loans paid in full is seven years, which is lower than the loan terms of 10 to 15 years due to the generation of SRECs being greater than expected. Payments on all outstanding loans were current as of March 31, 2020 and have an average remaining life of approximately four years.
Energy Holdings
Energy Holdings, through several 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’ equity investments in the leases are comprised of the total expected lease receivables 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.
In the first quarter of 2020, PSEG’s Board of Directors approved a sale of certain non-core assets held by subsidiaries of Energy Holdings that is no longer considered probable due to market conditions. As a result, PSEG has not classified the assets as Assets Held for Sale as of March 31, 2020.
Leveraged leases outstanding as of March 31, 2020 commenced in or prior to 2000. The following table shows Energy Holdings’ gross and net lease investment as of March 31, 2020 and December 31, 2019.
 
 
 
 
 
 
 
 
As of
 
As of
 
 
 
March 31,
2020
 
December 31,
2019
 
 
 
Millions
 
 
Lease Receivables (net of Non-Recourse Debt)
$
470

 
$
498

 
 
Estimated Residual Value of Leased Assets
198

 
202

 
 
Total Investment in Rental Receivables
668

 
700

 
 
Unearned and Deferred Income
(197
)
 
(203
)
 
 
Gross Investments in Leases
471

 
497

 
 
Deferred Tax Liabilities
(325
)
 
(328
)
 
 
Net Investments in Leases
$
146

 
$
169

 
 
 
 
 
 
 

The corresponding receivables associated with the lease portfolio are reflected as follows, net of non-recourse debt. The ratings in the table represent the ratings of the entities providing payment assurance to Energy Holdings.
 
 
 
 
 
 
 
 
Lease Receivables, Net of
Non-Recourse Debt
 
 
Counterparties’ Credit Rating Standard and Poor’s (S&P) as of March 31, 2020
 
 
 
 
 
As of March 31, 2020
 
 
 
 
Millions
 
 
AA
 
$
9

 
 
A-
 
54

 
 
BBB+ to BBB
 
237

 
 
BB
 
132

 
 
NR
 
38

 
 
Total
 
$
470

 
 
 
 
 
 

The “BB” and the “NR” ratings in the preceding table represent lease receivables related to coal and gas-fired assets in Illinois and Pennsylvania, respectively. As of March 31, 2020, the gross investment in the leases of such assets, net of non-recourse debt, was $235 million ($(24) million, net of deferred taxes).
A more detailed description of such assets under lease is presented in the following table.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Asset
 
Location
 
Gross
Investment
 
%
Owned
 
Total MW
 
Fuel
Type
 
Counterparties’
S&P Credit
Ratings
 
Counterparty
 
 
 
 
 
 
Millions
 
 
 
 
 
 
 
 
 
 
 
 
Powerton Station Units 5 and 6
 
IL
 
$
75

 
64
%
 
1,538

 
Coal
 
BB
 
NRG Energy, Inc.
 
 
Joliet Station Units 7 and 8
 
IL
 
$
85

 
64
%
 
1,036

 
Gas
 
BB
 
NRG Energy, Inc.
 
 
Shawville Station Units 1, 2, 3 and 4
 
PA
 
$
75

 
100
%
 
596

 
Gas
 
NR
 
Shawville Power, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

The credit exposure for lessors is partially mitigated through various credit enhancement mechanisms within the lease structures. These credit enhancement features vary from lease to lease. The existing leveraged leases are either with counterparties with strong credit ratings, or with counterparties that are supplying parent guarantees or other credit support that indicate that there is only a modest chance of default. PSEG believes no credit losses are necessary for the leveraged leases existing on March 31, 2020. Upon the occurrence of certain defaults, indirect subsidiary companies of Energy Holdings would exercise their rights and 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 and trigger certain material tax obligations which could, for certain leases, wholly or partially be mitigated by tax indemnification claims against the counterparty. A bankruptcy of a lessee would likely delay and potentially limit any efforts on the part of the lessors to assert their rights upon default and could delay the monetization of claims.
Additional factors that 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 their affiliates and the quality and condition of assets under lease.
Public Service Electric and Gas Company [Member]  
Schedule of Financial Receivables [Line Items]  
Financing Receivables Financing Receivables
PSE&G
PSE&G’s Solar Loan Programs are designed to help finance the installation of solar power systems throughout its electric service area. Interest income on the loans is recorded on an accrual basis. The loans are paid back with SRECs generated from the related installed solar electric system. PSE&G uses collection experience as a credit quality indicator for its Solar Loan Programs and conducts a comprehensive credit review for all prospective borrowers. As of March 31, 2020, none of the solar loans were impaired; however, in the event of a loan default or if a loan becomes impaired, the basis of the solar loan would be recovered through a regulatory recovery mechanism. None of the solar loans are delinquent and no loans are currently expected to be delinquent in light of the payment mechanism. Therefore, no current credit losses have been recorded for Solar Loan Programs I, II and III. A substantial portion of these amounts are noncurrent and reported in Long-Term Investments on PSEG’s and PSE&G’s Condensed Consolidated Balance Sheets. The following table reflects the outstanding loans by class of customer, none of which would be considered “non-performing.”
 
 
 
 
 
 
 
 
Outstanding Loans by Class of Customer
 
 
 
 
As of
 
As of
 
 
Consumer Loans
 
March 31,
2020
 
December 31,
2019
 
 
 
 
Millions
 
 
Commercial/Industrial
 
$
154

 
$
156

 
 
Residential
 
8

 
8

 
 
Total
 
$
162

 
$
164

 
 
Current Portion (included in Accounts Receivable)
 
(26
)
 
(28
)
 
 
Noncurrent Portion (included in Long-Term Investments)
 
$
136

 
$
136

 
 
 
 
 
 
 
 
The solar loans originated under three Solar Loan Programs comprised as follows:
 
 
 
 
 
 
 
 
 
 
 
 
Programs
 
Balance as of March 31, 2020
 
Funding Provided
 
Residential Loan Term
 
Non-Residential Loan Term
 
 
 
 
Millions
 
 
 
 
 
 
 
 
Solar Loan I
 
$
26

 
prior to 2013
 
10 years
 
15 years
 
 
Solar Loan II
 
82

 
prior to 2015
 
10 years
 
15 years
 
 
Solar Loan III
 
54

 
largely funded as of December 31, 2019
 
10 years
 
10 years
 
 
Total
 
$
162

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

The average life of loans paid in full is seven years, which is lower than the loan terms of 10 to 15 years due to the generation of SRECs being greater than expected. Payments on all outstanding loans were current as of March 31, 2020 and have an average remaining life of approximately four years.
Energy Holdings
Energy Holdings, through several 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’ equity investments in the leases are comprised of the total expected lease receivables 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.
In the first quarter of 2020, PSEG’s Board of Directors approved a sale of certain non-core assets held by subsidiaries of Energy Holdings that is no longer considered probable due to market conditions. As a result, PSEG has not classified the assets as Assets Held for Sale as of March 31, 2020.
Leveraged leases outstanding as of March 31, 2020 commenced in or prior to 2000. The following table shows Energy Holdings’ gross and net lease investment as of March 31, 2020 and December 31, 2019.
 
 
 
 
 
 
 
 
As of
 
As of
 
 
 
March 31,
2020
 
December 31,
2019
 
 
 
Millions
 
 
Lease Receivables (net of Non-Recourse Debt)
$
470

 
$
498

 
 
Estimated Residual Value of Leased Assets
198

 
202

 
 
Total Investment in Rental Receivables
668

 
700

 
 
Unearned and Deferred Income
(197
)
 
(203
)
 
 
Gross Investments in Leases
471

 
497

 
 
Deferred Tax Liabilities
(325
)
 
(328
)
 
 
Net Investments in Leases
$
146

 
$
169

 
 
 
 
 
 
 

The corresponding receivables associated with the lease portfolio are reflected as follows, net of non-recourse debt. The ratings in the table represent the ratings of the entities providing payment assurance to Energy Holdings.
 
 
 
 
 
 
 
 
Lease Receivables, Net of
Non-Recourse Debt
 
 
Counterparties’ Credit Rating Standard and Poor’s (S&P) as of March 31, 2020
 
 
 
 
 
As of March 31, 2020
 
 
 
 
Millions
 
 
AA
 
$
9

 
 
A-
 
54

 
 
BBB+ to BBB
 
237

 
 
BB
 
132

 
 
NR
 
38

 
 
Total
 
$
470

 
 
 
 
 
 

The “BB” and the “NR” ratings in the preceding table represent lease receivables related to coal and gas-fired assets in Illinois and Pennsylvania, respectively. As of March 31, 2020, the gross investment in the leases of such assets, net of non-recourse debt, was $235 million ($(24) million, net of deferred taxes).
A more detailed description of such assets under lease is presented in the following table.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Asset
 
Location
 
Gross
Investment
 
%
Owned
 
Total MW
 
Fuel
Type
 
Counterparties’
S&P Credit
Ratings
 
Counterparty
 
 
 
 
 
 
Millions
 
 
 
 
 
 
 
 
 
 
 
 
Powerton Station Units 5 and 6
 
IL
 
$
75

 
64
%
 
1,538

 
Coal
 
BB
 
NRG Energy, Inc.
 
 
Joliet Station Units 7 and 8
 
IL
 
$
85

 
64
%
 
1,036

 
Gas
 
BB
 
NRG Energy, Inc.
 
 
Shawville Station Units 1, 2, 3 and 4
 
PA
 
$
75

 
100
%
 
596

 
Gas
 
NR
 
Shawville Power, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

The credit exposure for lessors is partially mitigated through various credit enhancement mechanisms within the lease structures. These credit enhancement features vary from lease to lease. The existing leveraged leases are either with counterparties with strong credit ratings, or with counterparties that are supplying parent guarantees or other credit support that indicate that there is only a modest chance of default. PSEG believes no credit losses are necessary for the leveraged leases existing on March 31, 2020. Upon the occurrence of certain defaults, indirect subsidiary companies of Energy Holdings would exercise their rights and 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 and trigger certain material tax obligations which could, for certain leases, wholly or partially be mitigated by tax indemnification claims against the counterparty. A bankruptcy of a lessee would likely delay and potentially limit any efforts on the part of the lessors to assert their rights upon default and could delay the monetization of claims.
Additional factors that 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 their affiliates and the quality and condition of assets under lease.
v3.20.1
Trust Investments
 3 Months Ended
Mar. 31, 2020
Schedule of Trust Investments [Line Items]  
Trust Investments Trust Investments
Nuclear Decommissioning Trust (NDT) Fund
PSEG Power maintains an external master NDT to fund its share of decommissioning costs for its five nuclear facilities upon their respective termination of operation. The trust contains two separate funds: 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 funds are managed by third-party investment managers who operate under investment guidelines developed by PSEG Power.
The following tables show the fair values and gross unrealized gains and losses for the securities held in the NDT Fund.
 
 
 
 
 
 
 
 
 
 
 
 
As of March 31, 2020
 
 
 
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
 
 
 
Millions
 
 
Equity Securities
 
 
 
 
 
 
 
 
 
Domestic
$
445

 
$
147

 
$
(27
)
 
$
565

 
 
International
386

 
33

 
(48
)
 
371

 
 
Total Equity Securities
831

 
180

 
(75
)
 
936

 
 
Available-for-Sale Debt Securities
 
 
 
 
 
 
 
 
 
Government
526

 
39

 
(1
)
 
564

 
 
Corporate
525

 
13

 
(11
)
 
527

 
 
Total Available-for-Sale Debt Securities
1,051

 
52

 
(12
)
 
1,091

 
 
Total NDT Fund Investments
$
1,882

 
$
232

 
$
(87
)
 
$
2,027

 
 
 
 
 
 
 
 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
As of December 31, 2019
 
 
 
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
 
 
 
Millions
 
 
Equity Securities
 
 
 
 
 
 
 
 
 
Domestic
$
425

 
$
238

 
$
(4
)
 
$
659

 
 
International
400

 
103

 
(11
)
 
492

 
 
Total Equity Securities
825

 
341

 
(15
)
 
1,151

 
 
Available-for-Sale Debt Securities
 
 
 
 
 
 
 
 
 
Government
563

 
16

 
(2
)
 
577

 
 
Corporate
470

 
17

 
(1
)
 
486

 
 
Total Available-for-Sale Debt Securities
1,033

 
33

 
(3
)
 
1,063

 
 
Total NDT Fund Investments (A)
$
1,858

 
$
374

 
$
(18
)
 
$
2,214

 
 
 
 
 
 
 
 
 
 
 

(A)
The NDT Fund Investments table excludes foreign currency of $2 million as of December 31, 2019, which is part of the NDT Fund.
Net unrealized gains (losses) on debt securities of $23 million (after-tax) were included in Accumulated Other Comprehensive Loss on PSEG’s and PSEG Power’s Condensed Consolidated Balance Sheets as of March 31, 2020. An impairment of debt securities of $(3) million was included in Net Gains (Losses) on Trust Investments on PSEG Power’s Condensed Consolidated Statement of Operations for the three months ended March 31, 2020 because PSEG Power intends to sell these securities. The portion of net unrealized gains (losses) recognized during the first three months of 2020 related to equity securities still held as of March 31, 2020 was $(192) million.
The 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
 
 
 
March 31,
2020
 
December 31,
2019
 
 
 
Millions
 
 
Accounts Receivable
$
20

 
$
11

 
 
Accounts Payable
$
30

 
$
11

 
 
 
 
 
 
 

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 March 31, 2020
 
As of December 31, 2019
 
 
 
Less Than 12
Months
 
Greater Than 12
Months
 
Less Than 12
Months
 
Greater Than 12
Months
 
 
 
Fair
Value
 
Gross
Unrealized
Losses
 
Fair
Value
 
Gross
Unrealized
Losses
 
Fair
Value
 
Gross
Unrealized
Losses
 
Fair
Value
 
Gross
Unrealized
Losses
 
 
 
Millions
 
 
Equity Securities (A)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Domestic
$
120

 
$
(24
)
 
$
3

 
$
(3
)
 
$
21

 
$
(1
)
 
$
6

 
$
(3
)
 
 
International
146

 
(31
)
 
23

 
(17
)
 
28

 
(2
)
 
34

 
(9
)
 
 
Total Equity Securities
266

 
(55
)
 
26

 
(20
)
 
49

 
(3
)
 
40

 
(12
)
 
 
Available-for-Sale Debt Securities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Government (B)
19

 
(1
)
 
2

 
—

 
99

 
(2
)
 
30

 
—

 
 
Corporate (C)
222

 
(10
)
 
9

 
(1
)
 
49

 
—

 
12

 
(1
)
 
 
Total Available-for-Sale Debt Securities
241

 
(11
)
 
11

 
(1
)
 
148

 
(2
)
 
42

 
(1
)
 
 
NDT Trust Investments
$
507

 
$
(66
)
 
$
37

 
$
(21
)
 
$
197

 
$
(5
)
 
$
82

 
$
(13
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(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. Unrealized gains and losses on these securities are recorded in Net Income.
(B)
Debt Securities (Government)—Unrealized gains and losses on these securities are recorded in Accumulated Other Comprehensive Income (Loss). The unrealized losses on PSEG Power’s NDT investments in U.S. Treasury obligations and Federal Agency mortgage-backed securities were caused by interest rate changes. PSEG Power also has investments in municipal bonds. It is not expected that these securities will settle for less than their amortized cost. PSEG Power does not intend to sell these securities nor will it be more-likely-than-not required to sell before recovery of their amortized cost. PSEG Power did not recognize credit losses for U.S. Treasury obligations and Federal Agency mortgage-backed securities because these investments are guaranteed by the U.S. government or an agency of the U.S. government. PSEG Power did not recognize credit losses for municipal bonds because they are primarily investment grade securities.
(C)
Debt Securities (Corporate)—Unrealized gains and losses on these securities are recorded in Accumulated Other Comprehensive Income (Loss). Unrealized losses were due to market declines. It is not expected that these securities would settle for less than their amortized cost. PSEG Power does not intend to sell these securities nor will it be more-likely-than-not required to sell before recovery of their amortized cost. PSEG Power did not recognize credit losses for these corporate bonds because they are primarily investment grade securities.
The proceeds from the sales of and the net gains (losses) on securities in the NDT Fund were:
 
 
 
 
 
 
 
 
Three Months Ended
 
 
 
March 31,
 
 
 
2020
 
2019
 
 
 
Millions
 
 
Proceeds from NDT Fund Sales (A)
$
555

 
$
453

 
 
Net Realized Gains (Losses) on NDT Fund
 
 
 
 
 
Gross Realized Gains
$
38

 
$
45

 
 
Gross Realized Losses
(34
)
 
(19
)
 
 
Net Realized Gains (Losses) on NDT Fund (B)
$
4

 
$
26

 
 
Unrealized Gains (Losses) on Equity Securities
(221
)
 
99

 
 
Impairment of Available-for-Sale Debt Securities (C)
(3
)
 
—

 
 
Net Gains (Losses) on NDT Fund Investments
$
(220
)
 
$
125

 
 
 
 
 
 
 
(A)Includes activity in accounts related to the liquidation of funds being transitioned to new managers.
(B)The cost of these securities was determined on the basis of specific identification.
(C)
PSEG Power recognized an impairment of available-for-sale debt securities that it intends to sell. PSEG Power’s policy is to sell all such securities that are rated below investment grade.
The NDT Fund debt securities held as of March 31, 2020 had the following maturities:
 
 
 
 
 
 
Time Frame
 
Fair Value
 
 
 
 
Millions
 
 
Less than one year
 
$
17

 
 
1 - 5 years
 
278

 
 
6 - 10 years
 
183

 
 
11 - 15 years
 
63

 
 
16 - 20 years
 
73

 
 
Over 20 years
 
477

 
 
Total NDT Available-for-Sale Debt Securities
$
1,091

 
 
 
 
 
 

PSEG Power periodically assesses individual debt securities whose fair value is less than amortized cost to determine whether the investments are impaired. For these 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). Any subsequent recoveries of the noncredit loss component of the impairment would be recorded through Accumulated Other Comprehensive Income (Loss). Any subsequent recoveries of the credit loss component would be recognized through earnings. 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.”
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 March 31, 2020
 
 
 
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
 
 
 
Millions
 
 
Domestic Equity Securities
$
21

 
$
1

 
$
—

 
$
22

 
 
Available-for-Sale Debt Securities
 
 
 
 
 
 
 
 
 
Government
97

 
13

 
—

 
110

 
 
Corporate
111

 
4

 
(3
)
 
112

 
 
Total Available-for-Sale Debt Securities
208

 
17

 
(3
)
 
222

 
 
Total Rabbi Trust Investments
$
229

 
$
18

 
$
(3
)
 
$
244

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of December 31, 2019
 
 
 
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
 
 
 
Millions
 
 
Domestic Equity Securities
$
21

 
$
7

 
$
—

 
$
28

 
 
Available-for-Sale Debt Securities
 
 
 
 
 
 
 
 
 
Government
100

 
4

 
—

 
104

 
 
Corporate
107

 
7

 
—

 
114

 
 
Total Available-for-Sale Debt Securities
207

 
11

 
—

 
218

 
 
Total Rabbi Trust Investments
$
228

 
$
18

 
$
—

 
$
246

 
 
 
 
 
 
 
 
 
 
 

Net unrealized gains (losses) on debt securities of $10 million (after-tax) were included in Accumulated Other Comprehensive Loss on PSEG’s Condensed Consolidated Balance Sheet as of March 31, 2020. The portion of net unrealized gains (losses) recognized during the first three months of 2020 related to equity securities still held as of March 31, 2020 was $(6) million.
The 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
 
 
 
March 31,
2020
 
December 31,
2019
 
 
 
Millions
 
 
Accounts Receivable
$
7

 
$
2

 
 
Accounts Payable
$
2

 
$
—

 
 
 
 
 
 
 

The following table shows the value of securities in the Rabbi Trust Fund that have been in an unrealized loss position for less than 12 months and greater than 12 months.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of March 31, 2020
 
As of December 31, 2019
 
 
 
Less Than 12
Months
 
Greater Than 12
Months
 
Less Than 12
Months
 
Greater Than 12
Months
 
 
 
Fair
Value
 
Gross
Unrealized
Losses
 
Fair
Value
 
Gross
Unrealized
Losses
 
Fair
Value
 
Gross
Unrealized
Losses
 
Fair
Value
 
Gross
Unrealized
Losses
 
 
 
Millions
 
 
Available-for-Sale Debt Securities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Government (A)
$
5

 
$
—

 
$
—

 
$
—

 
$
26

 
$
—

 
$
3

 
$
—

 
 
Corporate (B)
43

 
(3
)
 
1

 
—

 
11

 
—

 
2

 
—

 
 
Total Available-for-Sale Debt Securities
48

 
(3
)
 
1

 
—

 
37

 
—

 
5

 
—

 
 
Rabbi Trust Investments
$
48

 
$
(3
)
 
$
1

 
$
—

 
$
37

 
$
—

 
$
5

 
$
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

(A)
Debt Securities (Government)—Unrealized gains and losses on these securities are recorded in Accumulated Other Comprehensive Income (Loss). The unrealized losses on PSEG’s Rabbi Trust investments in U.S. Treasury obligations and Federal Agency mortgage-backed securities were caused by interest rate changes. PSEG also has investments in municipal bonds. It is not expected that these securities will settle for less than their amortized cost. PSEG does not intend to sell these securities nor will it be more-likely-than-not required to sell before recovery of their amortized cost. PSEG did not recognize credit losses for U.S. Treasury obligations and Federal Agency mortgage-backed securities because these investments are guaranteed by the U.S. government or an agency of the U.S. government. PSEG did not recognize credit losses for municipal bonds because they are primarily investment grade securities.
(B)
Debt Securities (Corporate)—Unrealized gains and losses on these securities are recorded in Accumulated Other Comprehensive Income (Loss). Unrealized losses were due to market declines. It is not expected that these securities would settle for less than their amortized cost. PSEG does not intend to sell these securities nor will it be more-likely-than-not required to sell before recovery of their amortized cost. PSEG did not recognize credit losses for these corporate bonds because they are primarily investment grade.
The proceeds from the sales of and the net gains (losses) on securities in the Rabbi Trust Fund were:
 
 
 
 
 
 
 
 
Three Months Ended
 
 
 
March 31,
 
 
 
2020
 
2019
 
 
 
Millions
 
 
Proceeds from Rabbi Trust Sales (A)
$
54

 
$
44

 
 
Net Realized Gains (Losses) on Rabbi Trust:
 
 
 
 
 
Gross Realized Gains
$
5

 
$
1

 
 
Gross Realized Losses
(1
)
 
(1
)
 
 
Net Realized Gains (Losses) on Rabbi Trust (B)
4

 
—

 
 
Unrealized Gains (Losses) on Equity Securities
(5
)
 
3

 
 
Net Gains (Losses) on Rabbi Trust Investments
$
(1
)
 
$
3

 
 
 
 
 
 
 

(A)Includes activity in accounts related to the liquidation of funds being transitioned to new managers.
(B)The cost of these securities was determined on the basis of specific identification.
The Rabbi Trust debt securities held as of March 31, 2020 had the following maturities:
 
 
 
 
 
 
Time Frame
 
Fair Value
 
 
 
 
Millions
 
 
Less than one year
 
$
3

 
 
1 - 5 years
 
27

 
 
6 - 10 years
 
33

 
 
11 - 15 years
 
14

 
 
16 - 20 years
 
23

 
 
Over 20 years
 
122

 
 
Total Rabbi Trust Available-for-Sale Debt Securities
$
222

 
 
 
 
 
 

PSEG periodically assesses individual debt securities whose fair value is less than amortized cost to determine whether the investments are considered to be impaired. For these 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). Any subsequent recoveries of the noncredit loss component of the impairment would be recorded through Accumulated Other Comprehensive Income (Loss). Any subsequent recoveries of the credit loss component would be recognized through earnings. 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 the Rabbi Trust related to PSEG, PSE&G and PSEG Power are detailed as follows:
 
 
 
 
 
 
 
 
As of
 
As of
 
 
 
March 31,
2020
 
December 31,
2019
 
 
 
Millions
 
 
PSE&G
$
47

 
$
48

 
 
PSEG Power
61

 
62

 
 
Other
136

 
136

 
 
Total Rabbi Trust Investments
$
244

 
$
246

 
 
 
 
 
 
 
Public Service Electric and Gas Company [Member]  
Schedule of Trust Investments [Line Items]  
Trust Investments Trust Investments
Nuclear Decommissioning Trust (NDT) Fund
PSEG Power maintains an external master NDT to fund its share of decommissioning costs for its five nuclear facilities upon their respective termination of operation. The trust contains two separate funds: 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 funds are managed by third-party investment managers who operate under investment guidelines developed by PSEG Power.
The following tables show the fair values and gross unrealized gains and losses for the securities held in the NDT Fund.
 
 
 
 
 
 
 
 
 
 
 
 
As of March 31, 2020
 
 
 
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
 
 
 
Millions
 
 
Equity Securities
 
 
 
 
 
 
 
 
 
Domestic
$
445

 
$
147

 
$
(27
)
 
$
565

 
 
International
386

 
33

 
(48
)
 
371

 
 
Total Equity Securities
831

 
180

 
(75
)
 
936

 
 
Available-for-Sale Debt Securities
 
 
 
 
 
 
 
 
 
Government
526

 
39

 
(1
)
 
564

 
 
Corporate
525

 
13

 
(11
)
 
527

 
 
Total Available-for-Sale Debt Securities
1,051

 
52

 
(12
)
 
1,091

 
 
Total NDT Fund Investments
$
1,882

 
$
232

 
$
(87
)
 
$
2,027

 
 
 
 
 
 
 
 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
As of December 31, 2019
 
 
 
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
 
 
 
Millions
 
 
Equity Securities
 
 
 
 
 
 
 
 
 
Domestic
$
425

 
$
238

 
$
(4
)
 
$
659

 
 
International
400

 
103

 
(11
)
 
492

 
 
Total Equity Securities
825

 
341

 
(15
)
 
1,151

 
 
Available-for-Sale Debt Securities
 
 
 
 
 
 
 
 
 
Government
563

 
16

 
(2
)
 
577

 
 
Corporate
470

 
17

 
(1
)
 
486

 
 
Total Available-for-Sale Debt Securities
1,033

 
33

 
(3
)
 
1,063

 
 
Total NDT Fund Investments (A)
$
1,858

 
$
374

 
$
(18
)
 
$
2,214

 
 
 
 
 
 
 
 
 
 
 

(A)
The NDT Fund Investments table excludes foreign currency of $2 million as of December 31, 2019, which is part of the NDT Fund.
Net unrealized gains (losses) on debt securities of $23 million (after-tax) were included in Accumulated Other Comprehensive Loss on PSEG’s and PSEG Power’s Condensed Consolidated Balance Sheets as of March 31, 2020. An impairment of debt securities of $(3) million was included in Net Gains (Losses) on Trust Investments on PSEG Power’s Condensed Consolidated Statement of Operations for the three months ended March 31, 2020 because PSEG Power intends to sell these securities. The portion of net unrealized gains (losses) recognized during the first three months of 2020 related to equity securities still held as of March 31, 2020 was $(192) million.
The 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
 
 
 
March 31,
2020
 
December 31,
2019
 
 
 
Millions
 
 
Accounts Receivable
$
20

 
$
11

 
 
Accounts Payable
$
30

 
$
11

 
 
 
 
 
 
 

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 March 31, 2020
 
As of December 31, 2019
 
 
 
Less Than 12
Months
 
Greater Than 12
Months
 
Less Than 12
Months
 
Greater Than 12
Months
 
 
 
Fair
Value
 
Gross
Unrealized
Losses
 
Fair
Value
 
Gross
Unrealized
Losses
 
Fair
Value
 
Gross
Unrealized
Losses
 
Fair
Value
 
Gross
Unrealized
Losses
 
 
 
Millions
 
 
Equity Securities (A)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Domestic
$
120

 
$
(24
)
 
$
3

 
$
(3
)
 
$
21

 
$
(1
)
 
$
6

 
$
(3
)
 
 
International
146

 
(31
)
 
23

 
(17
)
 
28

 
(2
)
 
34

 
(9
)
 
 
Total Equity Securities
266

 
(55
)
 
26

 
(20
)
 
49

 
(3
)
 
40

 
(12
)
 
 
Available-for-Sale Debt Securities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Government (B)
19

 
(1
)
 
2

 
—

 
99

 
(2
)
 
30

 
—

 
 
Corporate (C)
222

 
(10
)
 
9

 
(1
)
 
49

 
—

 
12

 
(1
)
 
 
Total Available-for-Sale Debt Securities
241

 
(11
)
 
11

 
(1
)
 
148

 
(2
)
 
42

 
(1
)
 
 
NDT Trust Investments
$
507

 
$
(66
)
 
$
37

 
$
(21
)
 
$
197

 
$
(5
)
 
$
82

 
$
(13
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(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. Unrealized gains and losses on these securities are recorded in Net Income.
(B)
Debt Securities (Government)—Unrealized gains and losses on these securities are recorded in Accumulated Other Comprehensive Income (Loss). The unrealized losses on PSEG Power’s NDT investments in U.S. Treasury obligations and Federal Agency mortgage-backed securities were caused by interest rate changes. PSEG Power also has investments in municipal bonds. It is not expected that these securities will settle for less than their amortized cost. PSEG Power does not intend to sell these securities nor will it be more-likely-than-not required to sell before recovery of their amortized cost. PSEG Power did not recognize credit losses for U.S. Treasury obligations and Federal Agency mortgage-backed securities because these investments are guaranteed by the U.S. government or an agency of the U.S. government. PSEG Power did not recognize credit losses for municipal bonds because they are primarily investment grade securities.
(C)
Debt Securities (Corporate)—Unrealized gains and losses on these securities are recorded in Accumulated Other Comprehensive Income (Loss). Unrealized losses were due to market declines. It is not expected that these securities would settle for less than their amortized cost. PSEG Power does not intend to sell these securities nor will it be more-likely-than-not required to sell before recovery of their amortized cost. PSEG Power did not recognize credit losses for these corporate bonds because they are primarily investment grade securities.
The proceeds from the sales of and the net gains (losses) on securities in the NDT Fund were:
 
 
 
 
 
 
 
 
Three Months Ended
 
 
 
March 31,
 
 
 
2020
 
2019
 
 
 
Millions
 
 
Proceeds from NDT Fund Sales (A)
$
555

 
$
453

 
 
Net Realized Gains (Losses) on NDT Fund
 
 
 
 
 
Gross Realized Gains
$
38

 
$
45

 
 
Gross Realized Losses
(34
)
 
(19
)
 
 
Net Realized Gains (Losses) on NDT Fund (B)
$
4

 
$
26

 
 
Unrealized Gains (Losses) on Equity Securities
(221
)
 
99

 
 
Impairment of Available-for-Sale Debt Securities (C)
(3
)
 
—

 
 
Net Gains (Losses) on NDT Fund Investments
$
(220
)
 
$
125

 
 
 
 
 
 
 
(A)Includes activity in accounts related to the liquidation of funds being transitioned to new managers.
(B)The cost of these securities was determined on the basis of specific identification.
(C)
PSEG Power recognized an impairment of available-for-sale debt securities that it intends to sell. PSEG Power’s policy is to sell all such securities that are rated below investment grade.
The NDT Fund debt securities held as of March 31, 2020 had the following maturities:
 
 
 
 
 
 
Time Frame
 
Fair Value
 
 
 
 
Millions
 
 
Less than one year
 
$
17

 
 
1 - 5 years
 
278

 
 
6 - 10 years
 
183

 
 
11 - 15 years
 
63

 
 
16 - 20 years
 
73

 
 
Over 20 years
 
477

 
 
Total NDT Available-for-Sale Debt Securities
$
1,091

 
 
 
 
 
 

PSEG Power periodically assesses individual debt securities whose fair value is less than amortized cost to determine whether the investments are impaired. For these 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). Any subsequent recoveries of the noncredit loss component of the impairment would be recorded through Accumulated Other Comprehensive Income (Loss). Any subsequent recoveries of the credit loss component would be recognized through earnings. 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.”
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 March 31, 2020
 
 
 
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
 
 
 
Millions
 
 
Domestic Equity Securities
$
21

 
$
1

 
$
—

 
$
22

 
 
Available-for-Sale Debt Securities
 
 
 
 
 
 
 
 
 
Government
97

 
13

 
—

 
110

 
 
Corporate
111

 
4

 
(3
)
 
112

 
 
Total Available-for-Sale Debt Securities
208

 
17

 
(3
)
 
222

 
 
Total Rabbi Trust Investments
$
229

 
$
18

 
$
(3
)
 
$
244

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of December 31, 2019
 
 
 
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
 
 
 
Millions
 
 
Domestic Equity Securities
$
21

 
$
7

 
$
—

 
$
28

 
 
Available-for-Sale Debt Securities
 
 
 
 
 
 
 
 
 
Government
100

 
4

 
—

 
104

 
 
Corporate
107

 
7

 
—

 
114

 
 
Total Available-for-Sale Debt Securities
207

 
11

 
—

 
218

 
 
Total Rabbi Trust Investments
$
228

 
$
18

 
$
—

 
$
246

 
 
 
 
 
 
 
 
 
 
 

Net unrealized gains (losses) on debt securities of $10 million (after-tax) were included in Accumulated Other Comprehensive Loss on PSEG’s Condensed Consolidated Balance Sheet as of March 31, 2020. The portion of net unrealized gains (losses) recognized during the first three months of 2020 related to equity securities still held as of March 31, 2020 was $(6) million.
The 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
 
 
 
March 31,
2020
 
December 31,
2019
 
 
 
Millions
 
 
Accounts Receivable
$
7

 
$
2

 
 
Accounts Payable
$
2

 
$
—

 
 
 
 
 
 
 

The following table shows the value of securities in the Rabbi Trust Fund that have been in an unrealized loss position for less than 12 months and greater than 12 months.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of March 31, 2020
 
As of December 31, 2019
 
 
 
Less Than 12
Months
 
Greater Than 12
Months
 
Less Than 12
Months
 
Greater Than 12
Months
 
 
 
Fair
Value
 
Gross
Unrealized
Losses
 
Fair
Value
 
Gross
Unrealized
Losses
 
Fair
Value
 
Gross
Unrealized
Losses
 
Fair
Value
 
Gross
Unrealized
Losses
 
 
 
Millions
 
 
Available-for-Sale Debt Securities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Government (A)
$
5

 
$
—

 
$
—

 
$
—

 
$
26

 
$
—

 
$
3

 
$
—

 
 
Corporate (B)
43

 
(3
)
 
1

 
—

 
11

 
—

 
2

 
—

 
 
Total Available-for-Sale Debt Securities
48

 
(3
)
 
1

 
—

 
37

 
—

 
5

 
—

 
 
Rabbi Trust Investments
$
48

 
$
(3
)
 
$
1

 
$
—

 
$
37

 
$
—

 
$
5

 
$
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

(A)
Debt Securities (Government)—Unrealized gains and losses on these securities are recorded in Accumulated Other Comprehensive Income (Loss). The unrealized losses on PSEG’s Rabbi Trust investments in U.S. Treasury obligations and Federal Agency mortgage-backed securities were caused by interest rate changes. PSEG also has investments in municipal bonds. It is not expected that these securities will settle for less than their amortized cost. PSEG does not intend to sell these securities nor will it be more-likely-than-not required to sell before recovery of their amortized cost. PSEG did not recognize credit losses for U.S. Treasury obligations and Federal Agency mortgage-backed securities because these investments are guaranteed by the U.S. government or an agency of the U.S. government. PSEG did not recognize credit losses for municipal bonds because they are primarily investment grade securities.
(B)
Debt Securities (Corporate)—Unrealized gains and losses on these securities are recorded in Accumulated Other Comprehensive Income (Loss). Unrealized losses were due to market declines. It is not expected that these securities would settle for less than their amortized cost. PSEG does not intend to sell these securities nor will it be more-likely-than-not required to sell before recovery of their amortized cost. PSEG did not recognize credit losses for these corporate bonds because they are primarily investment grade.
The proceeds from the sales of and the net gains (losses) on securities in the Rabbi Trust Fund were:
 
 
 
 
 
 
 
 
Three Months Ended
 
 
 
March 31,
 
 
 
2020
 
2019
 
 
 
Millions
 
 
Proceeds from Rabbi Trust Sales (A)
$
54

 
$
44

 
 
Net Realized Gains (Losses) on Rabbi Trust:
 
 
 
 
 
Gross Realized Gains
$
5

 
$
1

 
 
Gross Realized Losses
(1
)
 
(1
)
 
 
Net Realized Gains (Losses) on Rabbi Trust (B)
4

 
—

 
 
Unrealized Gains (Losses) on Equity Securities
(5
)
 
3

 
 
Net Gains (Losses) on Rabbi Trust Investments
$
(1
)
 
$
3

 
 
 
 
 
 
 

(A)Includes activity in accounts related to the liquidation of funds being transitioned to new managers.
(B)The cost of these securities was determined on the basis of specific identification.
The Rabbi Trust debt securities held as of March 31, 2020 had the following maturities:
 
 
 
 
 
 
Time Frame
 
Fair Value
 
 
 
 
Millions
 
 
Less than one year
 
$
3

 
 
1 - 5 years
 
27

 
 
6 - 10 years
 
33

 
 
11 - 15 years
 
14

 
 
16 - 20 years
 
23

 
 
Over 20 years
 
122

 
 
Total Rabbi Trust Available-for-Sale Debt Securities
$
222

 
 
 
 
 
 

PSEG periodically assesses individual debt securities whose fair value is less than amortized cost to determine whether the investments are considered to be impaired. For these 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). Any subsequent recoveries of the noncredit loss component of the impairment would be recorded through Accumulated Other Comprehensive Income (Loss). Any subsequent recoveries of the credit loss component would be recognized through earnings. 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 the Rabbi Trust related to PSEG, PSE&G and PSEG Power are detailed as follows:
 
 
 
 
 
 
 
 
As of
 
As of
 
 
 
March 31,
2020
 
December 31,
2019
 
 
 
Millions
 
 
PSE&G
$
47

 
$
48

 
 
PSEG Power
61

 
62

 
 
Other
136

 
136

 
 
Total Rabbi Trust Investments
$
244

 
$
246

 
 
 
 
 
 
 
PSEG Power [Member]  
Schedule of Trust Investments [Line Items]  
Trust Investments Trust Investments
Nuclear Decommissioning Trust (NDT) Fund
PSEG Power maintains an external master NDT to fund its share of decommissioning costs for its five nuclear facilities upon their respective termination of operation. The trust contains two separate funds: 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 funds are managed by third-party investment managers who operate under investment guidelines developed by PSEG Power.
The following tables show the fair values and gross unrealized gains and losses for the securities held in the NDT Fund.
 
 
 
 
 
 
 
 
 
 
 
 
As of March 31, 2020
 
 
 
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
 
 
 
Millions
 
 
Equity Securities
 
 
 
 
 
 
 
 
 
Domestic
$
445

 
$
147

 
$
(27
)
 
$
565

 
 
International
386

 
33

 
(48
)
 
371

 
 
Total Equity Securities
831

 
180

 
(75
)
 
936

 
 
Available-for-Sale Debt Securities
 
 
 
 
 
 
 
 
 
Government
526

 
39

 
(1
)
 
564

 
 
Corporate
525

 
13

 
(11
)
 
527

 
 
Total Available-for-Sale Debt Securities
1,051

 
52

 
(12
)
 
1,091

 
 
Total NDT Fund Investments
$
1,882

 
$
232

 
$
(87
)
 
$
2,027

 
 
 
 
 
 
 
 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
As of December 31, 2019
 
 
 
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
 
 
 
Millions
 
 
Equity Securities
 
 
 
 
 
 
 
 
 
Domestic
$
425

 
$
238

 
$
(4
)
 
$
659

 
 
International
400

 
103

 
(11
)
 
492

 
 
Total Equity Securities
825

 
341

 
(15
)
 
1,151

 
 
Available-for-Sale Debt Securities
 
 
 
 
 
 
 
 
 
Government
563

 
16

 
(2
)
 
577

 
 
Corporate
470

 
17

 
(1
)
 
486

 
 
Total Available-for-Sale Debt Securities
1,033

 
33

 
(3
)
 
1,063

 
 
Total NDT Fund Investments (A)
$
1,858

 
$
374

 
$
(18
)
 
$
2,214

 
 
 
 
 
 
 
 
 
 
 

(A)
The NDT Fund Investments table excludes foreign currency of $2 million as of December 31, 2019, which is part of the NDT Fund.
Net unrealized gains (losses) on debt securities of $23 million (after-tax) were included in Accumulated Other Comprehensive Loss on PSEG’s and PSEG Power’s Condensed Consolidated Balance Sheets as of March 31, 2020. An impairment of debt securities of $(3) million was included in Net Gains (Losses) on Trust Investments on PSEG Power’s Condensed Consolidated Statement of Operations for the three months ended March 31, 2020 because PSEG Power intends to sell these securities. The portion of net unrealized gains (losses) recognized during the first three months of 2020 related to equity securities still held as of March 31, 2020 was $(192) million.
The 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
 
 
 
March 31,
2020
 
December 31,
2019
 
 
 
Millions
 
 
Accounts Receivable
$
20

 
$
11

 
 
Accounts Payable
$
30

 
$
11

 
 
 
 
 
 
 

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 March 31, 2020
 
As of December 31, 2019
 
 
 
Less Than 12
Months
 
Greater Than 12
Months
 
Less Than 12
Months
 
Greater Than 12
Months
 
 
 
Fair
Value
 
Gross
Unrealized
Losses
 
Fair
Value
 
Gross
Unrealized
Losses
 
Fair
Value
 
Gross
Unrealized
Losses
 
Fair
Value
 
Gross
Unrealized
Losses
 
 
 
Millions
 
 
Equity Securities (A)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Domestic
$
120

 
$
(24
)
 
$
3

 
$
(3
)
 
$
21

 
$
(1
)
 
$
6

 
$
(3
)
 
 
International
146

 
(31
)
 
23

 
(17
)
 
28

 
(2
)
 
34

 
(9
)
 
 
Total Equity Securities
266

 
(55
)
 
26

 
(20
)
 
49

 
(3
)
 
40

 
(12
)
 
 
Available-for-Sale Debt Securities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Government (B)
19

 
(1
)
 
2

 
—

 
99

 
(2
)
 
30

 
—

 
 
Corporate (C)
222

 
(10
)
 
9

 
(1
)
 
49

 
—

 
12

 
(1
)
 
 
Total Available-for-Sale Debt Securities
241

 
(11
)
 
11

 
(1
)
 
148

 
(2
)
 
42

 
(1
)
 
 
NDT Trust Investments
$
507

 
$
(66
)
 
$
37

 
$
(21
)
 
$
197

 
$
(5
)
 
$
82

 
$
(13
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(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. Unrealized gains and losses on these securities are recorded in Net Income.
(B)
Debt Securities (Government)—Unrealized gains and losses on these securities are recorded in Accumulated Other Comprehensive Income (Loss). The unrealized losses on PSEG Power’s NDT investments in U.S. Treasury obligations and Federal Agency mortgage-backed securities were caused by interest rate changes. PSEG Power also has investments in municipal bonds. It is not expected that these securities will settle for less than their amortized cost. PSEG Power does not intend to sell these securities nor will it be more-likely-than-not required to sell before recovery of their amortized cost. PSEG Power did not recognize credit losses for U.S. Treasury obligations and Federal Agency mortgage-backed securities because these investments are guaranteed by the U.S. government or an agency of the U.S. government. PSEG Power did not recognize credit losses for municipal bonds because they are primarily investment grade securities.
(C)
Debt Securities (Corporate)—Unrealized gains and losses on these securities are recorded in Accumulated Other Comprehensive Income (Loss). Unrealized losses were due to market declines. It is not expected that these securities would settle for less than their amortized cost. PSEG Power does not intend to sell these securities nor will it be more-likely-than-not required to sell before recovery of their amortized cost. PSEG Power did not recognize credit losses for these corporate bonds because they are primarily investment grade securities.
The proceeds from the sales of and the net gains (losses) on securities in the NDT Fund were:
 
 
 
 
 
 
 
 
Three Months Ended
 
 
 
March 31,
 
 
 
2020
 
2019
 
 
 
Millions
 
 
Proceeds from NDT Fund Sales (A)
$
555

 
$
453

 
 
Net Realized Gains (Losses) on NDT Fund
 
 
 
 
 
Gross Realized Gains
$
38

 
$
45

 
 
Gross Realized Losses
(34
)
 
(19
)
 
 
Net Realized Gains (Losses) on NDT Fund (B)
$
4

 
$
26

 
 
Unrealized Gains (Losses) on Equity Securities
(221
)
 
99

 
 
Impairment of Available-for-Sale Debt Securities (C)
(3
)
 
—

 
 
Net Gains (Losses) on NDT Fund Investments
$
(220
)
 
$
125

 
 
 
 
 
 
 
(A)Includes activity in accounts related to the liquidation of funds being transitioned to new managers.
(B)The cost of these securities was determined on the basis of specific identification.
(C)
PSEG Power recognized an impairment of available-for-sale debt securities that it intends to sell. PSEG Power’s policy is to sell all such securities that are rated below investment grade.
The NDT Fund debt securities held as of March 31, 2020 had the following maturities:
 
 
 
 
 
 
Time Frame
 
Fair Value
 
 
 
 
Millions
 
 
Less than one year
 
$
17

 
 
1 - 5 years
 
278

 
 
6 - 10 years
 
183

 
 
11 - 15 years
 
63

 
 
16 - 20 years
 
73

 
 
Over 20 years
 
477

 
 
Total NDT Available-for-Sale Debt Securities
$
1,091

 
 
 
 
 
 

PSEG Power periodically assesses individual debt securities whose fair value is less than amortized cost to determine whether the investments are impaired. For these 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). Any subsequent recoveries of the noncredit loss component of the impairment would be recorded through Accumulated Other Comprehensive Income (Loss). Any subsequent recoveries of the credit loss component would be recognized through earnings. 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.”
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 March 31, 2020
 
 
 
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
 
 
 
Millions
 
 
Domestic Equity Securities
$
21

 
$
1

 
$
—

 
$
22

 
 
Available-for-Sale Debt Securities
 
 
 
 
 
 
 
 
 
Government
97

 
13

 
—

 
110

 
 
Corporate
111

 
4

 
(3
)
 
112

 
 
Total Available-for-Sale Debt Securities
208

 
17

 
(3
)
 
222

 
 
Total Rabbi Trust Investments
$
229

 
$
18

 
$
(3
)
 
$
244

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of December 31, 2019
 
 
 
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
 
 
 
Millions
 
 
Domestic Equity Securities
$
21

 
$
7

 
$
—

 
$
28

 
 
Available-for-Sale Debt Securities
 
 
 
 
 
 
 
 
 
Government
100

 
4

 
—

 
104

 
 
Corporate
107

 
7

 
—

 
114

 
 
Total Available-for-Sale Debt Securities
207

 
11

 
—

 
218

 
 
Total Rabbi Trust Investments
$
228

 
$
18

 
$
—

 
$
246

 
 
 
 
 
 
 
 
 
 
 

Net unrealized gains (losses) on debt securities of $10 million (after-tax) were included in Accumulated Other Comprehensive Loss on PSEG’s Condensed Consolidated Balance Sheet as of March 31, 2020. The portion of net unrealized gains (losses) recognized during the first three months of 2020 related to equity securities still held as of March 31, 2020 was $(6) million.
The 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
 
 
 
March 31,
2020
 
December 31,
2019
 
 
 
Millions
 
 
Accounts Receivable
$
7

 
$
2

 
 
Accounts Payable
$
2

 
$
—

 
 
 
 
 
 
 

The following table shows the value of securities in the Rabbi Trust Fund that have been in an unrealized loss position for less than 12 months and greater than 12 months.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of March 31, 2020
 
As of December 31, 2019
 
 
 
Less Than 12
Months
 
Greater Than 12
Months
 
Less Than 12
Months
 
Greater Than 12
Months
 
 
 
Fair
Value
 
Gross
Unrealized
Losses
 
Fair
Value
 
Gross
Unrealized
Losses
 
Fair
Value
 
Gross
Unrealized
Losses
 
Fair
Value
 
Gross
Unrealized
Losses
 
 
 
Millions
 
 
Available-for-Sale Debt Securities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Government (A)
$
5

 
$
—

 
$
—

 
$
—

 
$
26

 
$
—

 
$
3

 
$
—

 
 
Corporate (B)
43

 
(3
)
 
1

 
—

 
11

 
—

 
2

 
—

 
 
Total Available-for-Sale Debt Securities
48

 
(3
)
 
1

 
—

 
37

 
—

 
5

 
—

 
 
Rabbi Trust Investments
$
48

 
$
(3
)
 
$
1

 
$
—

 
$
37

 
$
—

 
$
5

 
$
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

(A)
Debt Securities (Government)—Unrealized gains and losses on these securities are recorded in Accumulated Other Comprehensive Income (Loss). The unrealized losses on PSEG’s Rabbi Trust investments in U.S. Treasury obligations and Federal Agency mortgage-backed securities were caused by interest rate changes. PSEG also has investments in municipal bonds. It is not expected that these securities will settle for less than their amortized cost. PSEG does not intend to sell these securities nor will it be more-likely-than-not required to sell before recovery of their amortized cost. PSEG did not recognize credit losses for U.S. Treasury obligations and Federal Agency mortgage-backed securities because these investments are guaranteed by the U.S. government or an agency of the U.S. government. PSEG did not recognize credit losses for municipal bonds because they are primarily investment grade securities.
(B)
Debt Securities (Corporate)—Unrealized gains and losses on these securities are recorded in Accumulated Other Comprehensive Income (Loss). Unrealized losses were due to market declines. It is not expected that these securities would settle for less than their amortized cost. PSEG does not intend to sell these securities nor will it be more-likely-than-not required to sell before recovery of their amortized cost. PSEG did not recognize credit losses for these corporate bonds because they are primarily investment grade.
The proceeds from the sales of and the net gains (losses) on securities in the Rabbi Trust Fund were:
 
 
 
 
 
 
 
 
Three Months Ended
 
 
 
March 31,
 
 
 
2020
 
2019
 
 
 
Millions
 
 
Proceeds from Rabbi Trust Sales (A)
$
54

 
$
44

 
 
Net Realized Gains (Losses) on Rabbi Trust:
 
 
 
 
 
Gross Realized Gains
$
5

 
$
1

 
 
Gross Realized Losses
(1
)
 
(1
)
 
 
Net Realized Gains (Losses) on Rabbi Trust (B)
4

 
—

 
 
Unrealized Gains (Losses) on Equity Securities
(5
)
 
3

 
 
Net Gains (Losses) on Rabbi Trust Investments
$
(1
)
 
$
3

 
 
 
 
 
 
 

(A)Includes activity in accounts related to the liquidation of funds being transitioned to new managers.
(B)The cost of these securities was determined on the basis of specific identification.
The Rabbi Trust debt securities held as of March 31, 2020 had the following maturities:
 
 
 
 
 
 
Time Frame
 
Fair Value
 
 
 
 
Millions
 
 
Less than one year
 
$
3

 
 
1 - 5 years
 
27

 
 
6 - 10 years
 
33

 
 
11 - 15 years
 
14

 
 
16 - 20 years
 
23

 
 
Over 20 years
 
122

 
 
Total Rabbi Trust Available-for-Sale Debt Securities
$
222

 
 
 
 
 
 

PSEG periodically assesses individual debt securities whose fair value is less than amortized cost to determine whether the investments are considered to be impaired. For these 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). Any subsequent recoveries of the noncredit loss component of the impairment would be recorded through Accumulated Other Comprehensive Income (Loss). Any subsequent recoveries of the credit loss component would be recognized through earnings. 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 the Rabbi Trust related to PSEG, PSE&G and PSEG Power are detailed as follows:
 
 
 
 
 
 
 
 
As of
 
As of
 
 
 
March 31,
2020
 
December 31,
2019
 
 
 
Millions
 
 
PSE&G
$
47

 
$
48

 
 
PSEG Power
61

 
62

 
 
Other
136

 
136

 
 
Total Rabbi Trust Investments
$
244

 
$
246

 
 
 
 
 
 
 
v3.20.1
Pension and OPEB
 3 Months Ended
Mar. 31, 2020
Defined Benefit Plan Disclosure [Line Items]  
Pension and Other Postretirement Benefits (OPEB) Pension and Other Postretirement Benefits (OPEB)
PSEG sponsors qualified and nonqualified pension plans and OPEB plans covering PSEG’s and its participating affiliates’ current and former employees who meet certain eligibility criteria.
PSEG, PSE&G and PSEG Power are required to record the under or over funded positions of their defined benefit pension and OPEB plans on their respective balance sheets. Such funding positions of each PSEG company are required to be measured as of the date of their respective year-end Consolidated Balance Sheets.
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 for PSEG, excluding Servco. Amounts shown do not reflect the impacts of capitalization and co-owner allocations. Only the service cost component is eligible for capitalization, when applicable.
 
 
 
 
 
 
 
 
 
 
 
 
Pension Benefits
 
OPEB
 
 
 
Three Months Ended
 
Three Months Ended
 
 
 
March 31,
 
March 31,
 
 
 
2020
 
2019
 
2020
 
2019
 
 
 
Millions
 
 
Components of Net Periodic Benefit (Credits) Costs
 
 
 
 
 
 
 
 
 
Service Cost (included in O&M Expense)
$
35

 
$
29

 
$
2

 
$
2

 
 
Non-Service Components of Pension and OPEB (Credits) Costs
 
 
 
 
 
 
 
 
 
Interest Cost
48

 
58

 
9

 
11

 
 
Expected Return on Plan Assets
(111
)
 
(97
)
 
(10
)
 
(9
)
 
 
Amortization of Net
 
 
 
 
 
 
 
 
 
Prior Service Credit
(2
)
 
(5
)
 
(32
)
 
(32
)
 
 
Actuarial Loss
23

 
27

 
12

 
13

 
 
Non-Service Components of Pension and OPEB (Credits) Costs
(42
)
 
(17
)
 
(21
)
 
(17
)
 
 
Total Benefit (Credits) Costs
$
(7
)
 
$
12

 
$
(19
)
 
$
(15
)
 
 
 
 
 
 
 
 
 
 
 

Pension and OPEB costs for PSE&G, PSEG Power and PSEG’s other subsidiaries, excluding Servco, are detailed as follows:
 
 
 
 
 
 
 
 
 
 
 
 
Pension Benefits
 
OPEB
 
 
 
Three Months Ended
 
Three Months Ended
 
 
 
March 31,
 
March 31,
 
 
 
2020
 
2019
 
2020
 
2019
 
 
 
Millions
 
 
PSE&G
$
(7
)
 
$
7

 
$
(19
)
 
$
(16
)
 
 
PSEG Power
(1
)
 
3

 
—

 
1

 
 
Other
1

 
2

 
—

 
—

 
 
Total Benefit (Credits) Costs
$
(7
)
 
$
12

 
$
(19
)
 
$
(15
)
 
 
 
 
 
 
 
 
 
 
 

PSEG does not plan to contribute to its pension and OPEB plans in 2020. Internal Revenue Service (IRS) minimum funding requirements for pension plans are determined based on the fund’s assets and liabilities at the end of a calendar year for the subsequent calendar year. As a result, the market downturn associated with the ongoing coronavirus pandemic is not expected to impact PSEG’s pension contributions in 2020.
Servco Pension and OPEB
At the direction of LIPA, Servco sponsors benefit plans that cover its current and former employees who meet certain eligibility criteria. Under the OSA, all of these and any future employee benefit costs are to be funded by LIPA. See Note 5. Variable Interest Entity. These obligations, as well as the offsetting long-term receivable, are separately presented on the Condensed Consolidated Balance Sheet of PSEG.
Servco amounts are not included in any of the preceding pension and OPEB cost disclosures. Pension and OPEB costs of Servco are accounted for according to the OSA. Servco recognizes expenses for contributions to its pension plan trusts and for OPEB payments made to retirees. Operating Revenues are recognized for the reimbursement of these costs. Servco plans to contribute $30 million into its pension plan during 2020. IRS minimum funding requirements for pension plans are determined based on the fund’s assets and liabilities at the end of a calendar year for the subsequent calendar year. As a result, the market downturn associated with the ongoing coronavirus pandemic is not expected to impact Servco’s pension contributions in 2020. Servco’s pension-related revenues and costs were $8 million and $7 million for the three months ended March 31, 2020 and 2019, respectively. The OPEB-related revenues earned and costs incurred were $2 million and $1 million for the three months ended March 31, 2020 and 2019.
Public Service Electric and Gas Company [Member]  
Defined Benefit Plan Disclosure [Line Items]  
Pension and Other Postretirement Benefits (OPEB) Pension and Other Postretirement Benefits (OPEB)
PSEG sponsors qualified and nonqualified pension plans and OPEB plans covering PSEG’s and its participating affiliates’ current and former employees who meet certain eligibility criteria.
PSEG, PSE&G and PSEG Power are required to record the under or over funded positions of their defined benefit pension and OPEB plans on their respective balance sheets. Such funding positions of each PSEG company are required to be measured as of the date of their respective year-end Consolidated Balance Sheets.
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 for PSEG, excluding Servco. Amounts shown do not reflect the impacts of capitalization and co-owner allocations. Only the service cost component is eligible for capitalization, when applicable.
 
 
 
 
 
 
 
 
 
 
 
 
Pension Benefits
 
OPEB
 
 
 
Three Months Ended
 
Three Months Ended
 
 
 
March 31,
 
March 31,
 
 
 
2020
 
2019
 
2020
 
2019
 
 
 
Millions
 
 
Components of Net Periodic Benefit (Credits) Costs
 
 
 
 
 
 
 
 
 
Service Cost (included in O&M Expense)
$
35

 
$
29

 
$
2

 
$
2

 
 
Non-Service Components of Pension and OPEB (Credits) Costs
 
 
 
 
 
 
 
 
 
Interest Cost
48

 
58

 
9

 
11

 
 
Expected Return on Plan Assets
(111
)
 
(97
)
 
(10
)
 
(9
)
 
 
Amortization of Net
 
 
 
 
 
 
 
 
 
Prior Service Credit
(2
)
 
(5
)
 
(32
)
 
(32
)
 
 
Actuarial Loss
23

 
27

 
12

 
13

 
 
Non-Service Components of Pension and OPEB (Credits) Costs
(42
)
 
(17
)
 
(21
)
 
(17
)
 
 
Total Benefit (Credits) Costs
$
(7
)
 
$
12

 
$
(19
)
 
$
(15
)
 
 
 
 
 
 
 
 
 
 
 

Pension and OPEB costs for PSE&G, PSEG Power and PSEG’s other subsidiaries, excluding Servco, are detailed as follows:
 
 
 
 
 
 
 
 
 
 
 
 
Pension Benefits
 
OPEB
 
 
 
Three Months Ended
 
Three Months Ended
 
 
 
March 31,
 
March 31,
 
 
 
2020
 
2019
 
2020
 
2019
 
 
 
Millions
 
 
PSE&G
$
(7
)
 
$
7

 
$
(19
)
 
$
(16
)
 
 
PSEG Power
(1
)
 
3

 
—

 
1

 
 
Other
1

 
2

 
—

 
—

 
 
Total Benefit (Credits) Costs
$
(7
)
 
$
12

 
$
(19
)
 
$
(15
)
 
 
 
 
 
 
 
 
 
 
 

PSEG does not plan to contribute to its pension and OPEB plans in 2020. Internal Revenue Service (IRS) minimum funding requirements for pension plans are determined based on the fund’s assets and liabilities at the end of a calendar year for the subsequent calendar year. As a result, the market downturn associated with the ongoing coronavirus pandemic is not expected to impact PSEG’s pension contributions in 2020.
Servco Pension and OPEB
At the direction of LIPA, Servco sponsors benefit plans that cover its current and former employees who meet certain eligibility criteria. Under the OSA, all of these and any future employee benefit costs are to be funded by LIPA. See Note 5. Variable Interest Entity. These obligations, as well as the offsetting long-term receivable, are separately presented on the Condensed Consolidated Balance Sheet of PSEG.
Servco amounts are not included in any of the preceding pension and OPEB cost disclosures. Pension and OPEB costs of Servco are accounted for according to the OSA. Servco recognizes expenses for contributions to its pension plan trusts and for OPEB payments made to retirees. Operating Revenues are recognized for the reimbursement of these costs. Servco plans to contribute $30 million into its pension plan during 2020. IRS minimum funding requirements for pension plans are determined based on the fund’s assets and liabilities at the end of a calendar year for the subsequent calendar year. As a result, the market downturn associated with the ongoing coronavirus pandemic is not expected to impact Servco’s pension contributions in 2020. Servco’s pension-related revenues and costs were $8 million and $7 million for the three months ended March 31, 2020 and 2019, respectively. The OPEB-related revenues earned and costs incurred were $2 million and $1 million for the three months ended March 31, 2020 and 2019.
PSEG Power [Member]  
Defined Benefit Plan Disclosure [Line Items]  
Pension and Other Postretirement Benefits (OPEB) Pension and Other Postretirement Benefits (OPEB)
PSEG sponsors qualified and nonqualified pension plans and OPEB plans covering PSEG’s and its participating affiliates’ current and former employees who meet certain eligibility criteria.
PSEG, PSE&G and PSEG Power are required to record the under or over funded positions of their defined benefit pension and OPEB plans on their respective balance sheets. Such funding positions of each PSEG company are required to be measured as of the date of their respective year-end Consolidated Balance Sheets.
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 for PSEG, excluding Servco. Amounts shown do not reflect the impacts of capitalization and co-owner allocations. Only the service cost component is eligible for capitalization, when applicable.
 
 
 
 
 
 
 
 
 
 
 
 
Pension Benefits
 
OPEB
 
 
 
Three Months Ended
 
Three Months Ended
 
 
 
March 31,
 
March 31,
 
 
 
2020
 
2019
 
2020
 
2019
 
 
 
Millions
 
 
Components of Net Periodic Benefit (Credits) Costs
 
 
 
 
 
 
 
 
 
Service Cost (included in O&M Expense)
$
35

 
$
29

 
$
2

 
$
2

 
 
Non-Service Components of Pension and OPEB (Credits) Costs
 
 
 
 
 
 
 
 
 
Interest Cost
48

 
58

 
9

 
11

 
 
Expected Return on Plan Assets
(111
)
 
(97
)
 
(10
)
 
(9
)
 
 
Amortization of Net
 
 
 
 
 
 
 
 
 
Prior Service Credit
(2
)
 
(5
)
 
(32
)
 
(32
)
 
 
Actuarial Loss
23

 
27

 
12

 
13

 
 
Non-Service Components of Pension and OPEB (Credits) Costs
(42
)
 
(17
)
 
(21
)
 
(17
)
 
 
Total Benefit (Credits) Costs
$
(7
)
 
$
12

 
$
(19
)
 
$
(15
)
 
 
 
 
 
 
 
 
 
 
 

Pension and OPEB costs for PSE&G, PSEG Power and PSEG’s other subsidiaries, excluding Servco, are detailed as follows:
 
 
 
 
 
 
 
 
 
 
 
 
Pension Benefits
 
OPEB
 
 
 
Three Months Ended
 
Three Months Ended
 
 
 
March 31,
 
March 31,
 
 
 
2020
 
2019
 
2020
 
2019
 
 
 
Millions
 
 
PSE&G
$
(7
)
 
$
7

 
$
(19
)
 
$
(16
)
 
 
PSEG Power
(1
)
 
3

 
—

 
1

 
 
Other
1

 
2

 
—

 
—

 
 
Total Benefit (Credits) Costs
$
(7
)
 
$
12

 
$
(19
)
 
$
(15
)
 
 
 
 
 
 
 
 
 
 
 

PSEG does not plan to contribute to its pension and OPEB plans in 2020. Internal Revenue Service (IRS) minimum funding requirements for pension plans are determined based on the fund’s assets and liabilities at the end of a calendar year for the subsequent calendar year. As a result, the market downturn associated with the ongoing coronavirus pandemic is not expected to impact PSEG’s pension contributions in 2020.
Servco Pension and OPEB
At the direction of LIPA, Servco sponsors benefit plans that cover its current and former employees who meet certain eligibility criteria. Under the OSA, all of these and any future employee benefit costs are to be funded by LIPA. See Note 5. Variable Interest Entity. These obligations, as well as the offsetting long-term receivable, are separately presented on the Condensed Consolidated Balance Sheet of PSEG.
Servco amounts are not included in any of the preceding pension and OPEB cost disclosures. Pension and OPEB costs of Servco are accounted for according to the OSA. Servco recognizes expenses for contributions to its pension plan trusts and for OPEB payments made to retirees. Operating Revenues are recognized for the reimbursement of these costs. Servco plans to contribute $30 million into its pension plan during 2020. IRS minimum funding requirements for pension plans are determined based on the fund’s assets and liabilities at the end of a calendar year for the subsequent calendar year. As a result, the market downturn associated with the ongoing coronavirus pandemic is not expected to impact Servco’s pension contributions in 2020. Servco’s pension-related revenues and costs were $8 million and $7 million for the three months ended March 31, 2020 and 2019, respectively. The OPEB-related revenues earned and costs incurred were $2 million and $1 million for the three months ended March 31, 2020 and 2019.
v3.20.1
Commitments and Contingent Liabilities
 3 Months Ended
Mar. 31, 2020
Loss Contingencies [Line Items]  
Commitments and Contingent Liabilities Commitments and Contingent Liabilities
Guaranteed Obligations
PSEG 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 as a form of collateral.
PSEG Power has unconditionally guaranteed payments to counterparties on behalf of 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.
PSEG Power is subject to
•
counterparty collateral calls related to commodity contracts of its subsidiaries, and
•
certain creditworthiness standards as guarantor under performance guarantees of its subsidiaries.
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 PSEG 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 PSEG Power has provided a guarantee, and
•
the net position of the related contracts would have to be “out-of-the-money” (if the contracts are terminated, PSEG Power would owe money to the counterparties).
PSEG Power believes the probability of this result is unlikely. For this reason, PSEG Power believes that the current exposure at any point in time is a more meaningful representation of the potential liability under these guarantees. Current exposure consists of the net of accounts receivable and accounts payable and the forward value on open positions, less any collateral posted.
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. PSEG 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, PSEG Power has also provided payment guarantees to third parties and regulatory authorities on behalf of its affiliated companies. These guarantees support various other non-commodity related obligations.
The following table shows the face value of PSEG Power’s outstanding guarantees, current exposure and margin positions as of March 31, 2020 and December 31, 2019.
 
 
 
 
 
 
 
 
As of
 
As of
 
 
 
March 31, 2020
 
December 31, 2019
 
 
 
Millions
 
 
Face Value of Outstanding Guarantees
$
1,856

 
$
1,854

 
 
Exposure under Current Guarantees
$
140

 
$
171

 
 
 
 
 
 
 
 
Letters of Credit Margin Posted
$
114

 
$
121

 
 
Letters of Credit Margin Received
$
94

 
$
29

 
 
 
 
 
 
 
 
Cash Deposited and Received:
 
 
 
 
 
Counterparty Cash Collateral Deposited
$
—

 
$
—

 
 
Counterparty Cash Collateral Received
$
(7
)
 
$
(4
)
 
 
   Net Broker Balance Deposited (Received)
$
(4
)
 
$
48

 
 
 
 
 
 
 
 
Additional Amounts Posted:
 
 
 
 
 
Other Letters of Credit
$
82

 
$
82

 
 
 
 
 
 
 

As part of determining credit exposure, PSEG Power nets receivables and payables with the corresponding net fair values of energy contracts. See Note 13. 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 Condensed Consolidated Balance Sheet. The remaining balances of net cash (received)/deposited after allocation are generally included in Accounts Payable and Receivable, respectively.
In addition to amounts for outstanding guarantees, current exposure and margin positions, PSEG and PSEG Power have posted letters of credit to support PSEG Power’s various other non-energy contractual and environmental obligations. See the preceding table.
Environmental Matters
Passaic River
Lower Passaic River Study Area    
The U.S. Environmental Protection Agency (EPA) has determined that a 17-mile stretch of the Passaic River (Lower Passaic River Study Area (LPRSA)) in New Jersey is a “Superfund” site under the Federal Comprehensive Environmental Response, Compensation and Liability Act of 1980 (CERCLA). PSE&G and certain of its predecessors conducted operations at properties in this area, including at one site that was transferred to PSEG Power.
Certain Potentially Responsible Parties (PRPs), including PSE&G and PSEG Power, formed a Cooperating Parties Group (CPG) and agreed to conduct a Remedial Investigation and Feasibility Study of the LPRSA. The CPG allocated, on an interim basis, the associated costs among its members. The interim allocation is subject to change. In June 2019, the EPA conditionally approved the CPG’s Remedial Investigation. In August 2019, the CPG submitted a draft Feasibility Study (FS) to the EPA which evaluated various adaptive management scenarios for the remediation of only the upper 9 miles of the LPRSA. The CPG is evaluating the EPA’s comments received to date on the draft FS.
Separately, the EPA has released a Record of Decision (ROD) for the LPRSA’s lower 8.3 miles that requires the removal of sediments at an estimated cost of $2.3 billion (ROD Remedy). An EPA-commenced process to allocate the associated costs is underway and PSEG cannot predict the outcome. The allocation does not address certain costs incurred by the EPA for which they may be entitled to reimbursement and which may be material. Occidental Chemical Corporation (OCC), one of the PRPs, has commenced the design of the ROD Remedy, but declined to participate in the allocation process. Instead, it filed suit against PSE&G and others seeking cost recovery and contribution under CERCLA but has not quantified alleged damages. The litigation is ongoing and PSEG cannot predict the outcome.
Two PRPs, Tierra Solutions, Inc. (Tierra) and Maxus Energy Corporation (Maxus), have filed for Chapter 11 bankruptcy. The trust representing the creditors in this proceeding has filed a complaint asserting claims against Tierra’s and Maxus’ current and former parent entities, among others. Any damages awarded may be used to fund the remediation of the LPRSA.
As of March 31, 2020, PSEG has accrued approximately $65 million for this matter. Of this amount, PSE&G has accrued $52 million as an Environmental Costs Liability and a corresponding Regulatory Asset based on its continued ability to recover
such costs in its rates. PSEG Power has accrued $13 million as an Other Noncurrent Liability with the corresponding O&M Expense.
The outcome of this matter is uncertain, and until (i) a final remedy for the entire LPRSA is selected and an agreement is reached by the PRPs to fund it, (ii) PSE&G’s and PSEG Power’s respective shares of the costs are determined, and (iii) PSE&G’s ability to recover the costs in its rates is determined, it is not possible to predict this matter’s ultimate impact on PSEG’s financial statements. It is possible that PSE&G and PSEG Power will record additional costs beyond what they have accrued, and that such costs could be material, but PSEG cannot at the current time estimate the amount or range of any additional costs.
Natural Resource Damage Claims
New Jersey and certain federal regulators have alleged that PSE&G, PSEG Power and 56 other PRPs may be liable for natural resource damages within the LPRSA. In particular, PSE&G, PSEG Power and other PRPs received notice from federal regulators of the regulators’ intent to move forward with a series of studies assessing potential damages to natural resources at the Diamond Alkali Superfund Site, which includes the LPRSA and the Newark Bay Study Area. PSE&G and PSEG Power are unable to estimate their respective portions of any possible loss or range of loss related to this matter.
Newark Bay Study Area
The EPA has established the Newark Bay Study Area, which is an extension of the LPRSA and includes Newark Bay and portions of surrounding waterways. The EPA has notified PSEG and 11 other PRPs of their potential liability. PSE&G and PSEG Power are unable to estimate their respective portions of any loss or possible range of loss related to this matter. In December 2018, PSEG Power completed the sale of the site of the Hudson electric generating station. PSEG Power contractually transferred all land rights and structures on the Hudson site to a third-party purchaser, along with the assumption of the environmental liabilities for the site.
Manufactured Gas Plant (MGP) Remediation Program
PSE&G is working with the New Jersey Department of Environmental Protection (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 $352 million and $395 million on an undiscounted basis through 2023, including its $52 million share for the Passaic River as discussed above. Since no amount within the range is considered to be most likely, PSE&G has recorded a liability of $352 million as of March 31, 2020. Of this amount, $69 million was recorded in Other Current Liabilities and $283 million was reflected as Environmental Costs in Noncurrent Liabilities. PSE&G has recorded a $352 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. PSE&G has agreed to conduct sampling in the Passaic River to delineate coal tar from certain MGP sites that abut the Passaic River Superfund site. PSEG cannot determine at this time whether this will have an impact on the Passaic River Superfund remedy.
Clean Water Act (CWA) Section 316(b) Rule
The EPA’s CWA Section 316(b) rule establishes requirements for the regulation of cooling water intakes at existing power plants and industrial facilities with a design flow of more than two million gallons of water per day. The EPA requires that National Pollutant Discharge Elimination System permits be renewed every five years and that each state Permitting Director manage renewal permits for its respective power generation facilities on a case by case basis. 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.
In June 2016, the NJDEP issued a final NJPDES permit for Salem. In July 2016, the Delaware Riverkeeper Network (Riverkeeper) filed an administrative hearing request challenging certain conditions of the permit, including the NJDEP’s application of the 316(b) rule. If the Riverkeeper’s challenge is successful, PSEG Power may be required to incur additional costs to comply with the CWA. Potential cooling water and/or service water system modification costs could be material and could adversely impact the economic competitiveness of this facility. The NJDEP had granted the hearing request but no hearing date has been established.
State permitting decisions at BH3 and New Haven could also have a material impact on PSEG Power’s ability to renew permits at its existing larger once-through cooled plants without making significant upgrades to existing intakes and cooling systems. PSEG Power has proposed to continue to operate BH3 without making the capital expenditures for modification to the existing intake structure and retire BH3 in 2021, which is four years earlier than the previously estimated useful life ending in 2025. PSEG Power is unable to predict the outcome of these permitting decisions and the effect, if any, that they may have on PSEG Power’s future capital requirements, financial condition or results of operations.
Jersey City, New Jersey Subsurface Feeder Cable Matter
In October 2016, a discharge of dielectric fluid from subsurface feeder cables located in the Hudson River near Jersey City, New Jersey, was identified and reported to the NJDEP. The feeder cables are located within a subsurface easement granted to PSE&G by the property owners, Newport Associates Development Company (NADC) and Newport Associates Phase I Developer Limited Partnership. The feeder cables are subject to agreements between PSE&G and Consolidated Edison Company of New York, Inc. (Con Edison) and are jointly owned by PSE&G and Con Edison. The impacted cable was repaired in September 2017. A federal response was initially led by the U.S. Coast Guard. The U.S. Coast Guard transitioned control of the federal response to the EPA, and the EPA ended the federal response to the matter in 2018. The investigation of small amounts of residual dielectric fluid believed to be contained with the marina sediment is ongoing as part of the NJDEP site remediation program. We are currently in discussions with the federal government regarding the reimbursement of costs associated with the federal response to this matter and payment of civil penalties, in an amount expected to be immaterial to the financial statements of PSEG and PSE&G.
A lawsuit in federal court is pending to determine ultimate responsibility for the costs to address the leak among PSE&G, Con Edison and NADC. In addition, Con Edison filed counter claims against PSE&G and NADC, including seeking injunctive relief and damages. Based on the information currently available and depending on the outcome of the federal court action, PSE&G’s portion of the costs to address the leak may be material; however, PSE&G anticipates that it will recover its costs, other than civil penalties, through regulatory proceedings.
Basic Generation Service (BGS), BGSS and ZECs
PSE&G obtains its electric supply requirements through the annual New Jersey BGS auctions for two categories of customers who choose not to purchase electric supply from third-party suppliers. The first category, which represents about 79% of PSE&G’s load requirement, is residential and smaller commercial and industrial customers (BGS-Residential Small Commercial Pricing (RSCP)). The second category is larger customers that exceed a BPU-established load (kW) threshold (BGS-Commercial and Industrial Energy Pricing (CIEP)). 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 winning BGS suppliers, including PSEG Power, to purchase BGS for PSE&G’s load requirements. The winners of the auction (including PSEG 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.
The BGS-CIEP auction is for a one-year supply period from June 1 to May 31 with the BGS-CIEP auction price measured in dollars per MW-day for capacity. The final price for the BGS-CIEP auction year commencing June 1, 2020 is $359.98 per MW-day, replacing the BGS-CIEP auction year price ending May 31, 2020 of $281.78 per MW-day. Energy for BGS-CIEP is priced at hourly PJM locational marginal prices for the contract period.
PSE&G contracts for its anticipated BGS-RSCP load on a three-year rolling basis, whereby each year one-third of the load is procured for a three-year period. The contract prices in dollars per MWh for the BGS-RSCP supply, as well as the approximate load, are as follows:
 
 
 
 
 
 
 
 
 
 
 
 
 
Auction Year
 
 
 
 
2017
 
2018
 
2019
 
2020
 
 
 
36-Month Terms Ending
May 2020
 
May 2021
 
May 2022
 
May 2023
(A) 
 
 
Load (MW)
2,800
 
2,900
 
2,800
 
2,800
 
 
 
$ per MWh
$90.78
 
$91.77
 
$98.04
 
$102.16
 
 
 
 
 
 
 
 
 
 
 
 
 

(A)
Prices set in the 2020 BGS auction will become effective on June 1, 2020 when the 2017 BGS auction agreements expire.
PSEG 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, PSEG Power has entered into contracts to directly supply PSE&G and other New Jersey EDCs with a portion of their respective BGS requirements through the New Jersey BGS auction process, described above.
PSE&G has a full-requirements contract with PSEG Power to meet the gas supply requirements of PSE&G’s gas customers. PSEG 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 PSEG 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 20. Related-Party Transactions.
Pursuant to a process established by the BPU, New Jersey EDCs, including PSE&G, are required to purchase ZECs from eligible nuclear plants selected by the BPU. In April 2019, PSEG Power’s Salem 1, Salem 2 and Hope Creek nuclear plants were selected to receive ZEC revenue for approximately three years, through May 2022. PSE&G has implemented a tariff to collect a non-bypassable distribution charge in the amount of $0.004 per KWh from its retail distribution customers to be used to purchase the ZECs from these plants. PSE&G will purchase the ZECs on a monthly basis with payment to be made annually following completion of each energy year. The legislation also requires nuclear plants to reapply for any subsequent three-year periods and allows the BPU to adjust prospective ZEC payments.
Minimum Fuel Purchase Requirements
PSEG Power’s nuclear fuel 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. PSEG Power’s nuclear fuel commitments cover approximately 100% of its estimated uranium, enrichment and fabrication requirements through 2021 and a significant portion through 2022 at Salem, Hope Creek and Peach Bottom.
PSEG Power has various multi-year contracts for natural gas and firm transportation and storage capacity for natural gas that are primarily used to meet its obligations to PSE&G. When there is excess delivery capacity available beyond the needs of PSE&G’s customers, PSEG Power can use the gas to supply its fossil generating stations in New Jersey.
As of March 31, 2020, the total minimum purchase requirements included in these commitments were as follows:
 
 
 
 
 
 
Fuel Type
 
PSEG Power’s Share of Commitments through 2024
 
 
 
 
Millions
 
 
Nuclear Fuel
 
 
 
 
Uranium
 
$
189

 
 
Enrichment
 
$
336

 
 
Fabrication
 
$
175

 
 
Natural Gas
 
$
1,214

 
 
 
 
 
 

Pending FERC Matter
PSE&G has received requests for information and a Notice of Investigation from FERC’s Office of Enforcement concerning a transmission project. PSE&G retained outside counsel to assist with an internal investigation. PSE&G is fully cooperating with FERC’s requests for information and the investigation. It is not possible at this time to predict the outcome of this matter.
Litigation
Sewaren 7 Construction
In June 2018, a complaint was filed in federal court in Newark, New Jersey against PSEG Fossil LLC, a wholly owned subsidiary of PSEG Power, regarding an ongoing dispute with Durr Mechanical Construction, Inc. (Durr), a contractor on the Sewaren 7 project. Among other things, Durr seeks damages of $93 million and alleges that PSEG Power withheld money owed to Durr and that PSEG Power’s intentional conduct led to the inability of Durr to obtain prospective contracts. PSEG Power intends to vigorously defend against these allegations. In December 2018, Durr filed for Chapter 11 bankruptcy in the federal court in the Southern District of New York (SDNY). The SDNY bankruptcy court has allowed the New Jersey litigation to proceed. PSEG Power has accrued an amount related to outstanding invoices which does not reflect an assessment of claims and potential counterclaims in this matter. Due to its preliminary nature, PSEG Power cannot predict the outcome of this matter.
Other Litigation and Legal Proceedings
PSEG and its subsidiaries are party to various lawsuits in the ordinary course of business. In view of the inherent difficulty in predicting the outcome of such matters, PSEG, PSE&G and PSEG Power generally cannot predict the eventual outcome of the pending matters, the timing of the ultimate resolution of these matters, or the eventual loss, fines or penalties related to each pending matter.
In accordance with applicable accounting guidance, a liability is accrued when those matters present loss contingencies that are both probable and reasonably estimable. In such cases, there may be an exposure to loss in excess of any amounts accrued.
PSEG will continue to monitor the matter for further developments that could affect the amount of the accrued liability that has been previously established.
Based on current knowledge, management does not believe that loss contingencies arising from pending matters, other than the matters described herein, could have a material adverse effect on PSEG’s, PSE&G’s or PSEG Power’s consolidated financial position or liquidity. However, in light of the inherent uncertainties involved in these matters, some of which are beyond PSEG’s control, and the large or indeterminate damages sought in some of these matters, an adverse outcome in one or more of these matters could be material to PSEG’s, PSE&G’s or PSEG Power’s results of operations or liquidity for any particular reporting period.
Ongoing Coronavirus Pandemic
PSE&G, PSEG Power and PSEG LI are providing essential services during this national emergency related to the ongoing coronavirus (COVID-19) pandemic. The ongoing coronavirus pandemic has not had a material impact on our results of operations, financial condition or cash flows for the quarter ended March 31, 2020. However, the potential future impact of the pandemic and the associated economic impacts, which could extend beyond the duration of the pandemic, could have risks that drive certain accounting considerations. The ultimate impact of the ongoing coronavirus pandemic is highly uncertain and cannot be predicted at this time.
Public Service Electric and Gas Company [Member]  
Loss Contingencies [Line Items]  
Commitments and Contingent Liabilities Commitments and Contingent Liabilities
Guaranteed Obligations
PSEG 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 as a form of collateral.
PSEG Power has unconditionally guaranteed payments to counterparties on behalf of 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.
PSEG Power is subject to
•
counterparty collateral calls related to commodity contracts of its subsidiaries, and
•
certain creditworthiness standards as guarantor under performance guarantees of its subsidiaries.
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 PSEG 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 PSEG Power has provided a guarantee, and
•
the net position of the related contracts would have to be “out-of-the-money” (if the contracts are terminated, PSEG Power would owe money to the counterparties).
PSEG Power believes the probability of this result is unlikely. For this reason, PSEG Power believes that the current exposure at any point in time is a more meaningful representation of the potential liability under these guarantees. Current exposure consists of the net of accounts receivable and accounts payable and the forward value on open positions, less any collateral posted.
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. PSEG 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, PSEG Power has also provided payment guarantees to third parties and regulatory authorities on behalf of its affiliated companies. These guarantees support various other non-commodity related obligations.
The following table shows the face value of PSEG Power’s outstanding guarantees, current exposure and margin positions as of March 31, 2020 and December 31, 2019.
 
 
 
 
 
 
 
 
As of
 
As of
 
 
 
March 31, 2020
 
December 31, 2019
 
 
 
Millions
 
 
Face Value of Outstanding Guarantees
$
1,856

 
$
1,854

 
 
Exposure under Current Guarantees
$
140

 
$
171

 
 
 
 
 
 
 
 
Letters of Credit Margin Posted
$
114

 
$
121

 
 
Letters of Credit Margin Received
$
94

 
$
29

 
 
 
 
 
 
 
 
Cash Deposited and Received:
 
 
 
 
 
Counterparty Cash Collateral Deposited
$
—

 
$
—

 
 
Counterparty Cash Collateral Received
$
(7
)
 
$
(4
)
 
 
   Net Broker Balance Deposited (Received)
$
(4
)
 
$
48

 
 
 
 
 
 
 
 
Additional Amounts Posted:
 
 
 
 
 
Other Letters of Credit
$
82

 
$
82

 
 
 
 
 
 
 

As part of determining credit exposure, PSEG Power nets receivables and payables with the corresponding net fair values of energy contracts. See Note 13. 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 Condensed Consolidated Balance Sheet. The remaining balances of net cash (received)/deposited after allocation are generally included in Accounts Payable and Receivable, respectively.
In addition to amounts for outstanding guarantees, current exposure and margin positions, PSEG and PSEG Power have posted letters of credit to support PSEG Power’s various other non-energy contractual and environmental obligations. See the preceding table.
Environmental Matters
Passaic River
Lower Passaic River Study Area    
The U.S. Environmental Protection Agency (EPA) has determined that a 17-mile stretch of the Passaic River (Lower Passaic River Study Area (LPRSA)) in New Jersey is a “Superfund” site under the Federal Comprehensive Environmental Response, Compensation and Liability Act of 1980 (CERCLA). PSE&G and certain of its predecessors conducted operations at properties in this area, including at one site that was transferred to PSEG Power.
Certain Potentially Responsible Parties (PRPs), including PSE&G and PSEG Power, formed a Cooperating Parties Group (CPG) and agreed to conduct a Remedial Investigation and Feasibility Study of the LPRSA. The CPG allocated, on an interim basis, the associated costs among its members. The interim allocation is subject to change. In June 2019, the EPA conditionally approved the CPG’s Remedial Investigation. In August 2019, the CPG submitted a draft Feasibility Study (FS) to the EPA which evaluated various adaptive management scenarios for the remediation of only the upper 9 miles of the LPRSA. The CPG is evaluating the EPA’s comments received to date on the draft FS.
Separately, the EPA has released a Record of Decision (ROD) for the LPRSA’s lower 8.3 miles that requires the removal of sediments at an estimated cost of $2.3 billion (ROD Remedy). An EPA-commenced process to allocate the associated costs is underway and PSEG cannot predict the outcome. The allocation does not address certain costs incurred by the EPA for which they may be entitled to reimbursement and which may be material. Occidental Chemical Corporation (OCC), one of the PRPs, has commenced the design of the ROD Remedy, but declined to participate in the allocation process. Instead, it filed suit against PSE&G and others seeking cost recovery and contribution under CERCLA but has not quantified alleged damages. The litigation is ongoing and PSEG cannot predict the outcome.
Two PRPs, Tierra Solutions, Inc. (Tierra) and Maxus Energy Corporation (Maxus), have filed for Chapter 11 bankruptcy. The trust representing the creditors in this proceeding has filed a complaint asserting claims against Tierra’s and Maxus’ current and former parent entities, among others. Any damages awarded may be used to fund the remediation of the LPRSA.
As of March 31, 2020, PSEG has accrued approximately $65 million for this matter. Of this amount, PSE&G has accrued $52 million as an Environmental Costs Liability and a corresponding Regulatory Asset based on its continued ability to recover
such costs in its rates. PSEG Power has accrued $13 million as an Other Noncurrent Liability with the corresponding O&M Expense.
The outcome of this matter is uncertain, and until (i) a final remedy for the entire LPRSA is selected and an agreement is reached by the PRPs to fund it, (ii) PSE&G’s and PSEG Power’s respective shares of the costs are determined, and (iii) PSE&G’s ability to recover the costs in its rates is determined, it is not possible to predict this matter’s ultimate impact on PSEG’s financial statements. It is possible that PSE&G and PSEG Power will record additional costs beyond what they have accrued, and that such costs could be material, but PSEG cannot at the current time estimate the amount or range of any additional costs.
Natural Resource Damage Claims
New Jersey and certain federal regulators have alleged that PSE&G, PSEG Power and 56 other PRPs may be liable for natural resource damages within the LPRSA. In particular, PSE&G, PSEG Power and other PRPs received notice from federal regulators of the regulators’ intent to move forward with a series of studies assessing potential damages to natural resources at the Diamond Alkali Superfund Site, which includes the LPRSA and the Newark Bay Study Area. PSE&G and PSEG Power are unable to estimate their respective portions of any possible loss or range of loss related to this matter.
Newark Bay Study Area
The EPA has established the Newark Bay Study Area, which is an extension of the LPRSA and includes Newark Bay and portions of surrounding waterways. The EPA has notified PSEG and 11 other PRPs of their potential liability. PSE&G and PSEG Power are unable to estimate their respective portions of any loss or possible range of loss related to this matter. In December 2018, PSEG Power completed the sale of the site of the Hudson electric generating station. PSEG Power contractually transferred all land rights and structures on the Hudson site to a third-party purchaser, along with the assumption of the environmental liabilities for the site.
Manufactured Gas Plant (MGP) Remediation Program
PSE&G is working with the New Jersey Department of Environmental Protection (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 $352 million and $395 million on an undiscounted basis through 2023, including its $52 million share for the Passaic River as discussed above. Since no amount within the range is considered to be most likely, PSE&G has recorded a liability of $352 million as of March 31, 2020. Of this amount, $69 million was recorded in Other Current Liabilities and $283 million was reflected as Environmental Costs in Noncurrent Liabilities. PSE&G has recorded a $352 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. PSE&G has agreed to conduct sampling in the Passaic River to delineate coal tar from certain MGP sites that abut the Passaic River Superfund site. PSEG cannot determine at this time whether this will have an impact on the Passaic River Superfund remedy.
Clean Water Act (CWA) Section 316(b) Rule
The EPA’s CWA Section 316(b) rule establishes requirements for the regulation of cooling water intakes at existing power plants and industrial facilities with a design flow of more than two million gallons of water per day. The EPA requires that National Pollutant Discharge Elimination System permits be renewed every five years and that each state Permitting Director manage renewal permits for its respective power generation facilities on a case by case basis. 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.
In June 2016, the NJDEP issued a final NJPDES permit for Salem. In July 2016, the Delaware Riverkeeper Network (Riverkeeper) filed an administrative hearing request challenging certain conditions of the permit, including the NJDEP’s application of the 316(b) rule. If the Riverkeeper’s challenge is successful, PSEG Power may be required to incur additional costs to comply with the CWA. Potential cooling water and/or service water system modification costs could be material and could adversely impact the economic competitiveness of this facility. The NJDEP had granted the hearing request but no hearing date has been established.
State permitting decisions at BH3 and New Haven could also have a material impact on PSEG Power’s ability to renew permits at its existing larger once-through cooled plants without making significant upgrades to existing intakes and cooling systems. PSEG Power has proposed to continue to operate BH3 without making the capital expenditures for modification to the existing intake structure and retire BH3 in 2021, which is four years earlier than the previously estimated useful life ending in 2025. PSEG Power is unable to predict the outcome of these permitting decisions and the effect, if any, that they may have on PSEG Power’s future capital requirements, financial condition or results of operations.
Jersey City, New Jersey Subsurface Feeder Cable Matter
In October 2016, a discharge of dielectric fluid from subsurface feeder cables located in the Hudson River near Jersey City, New Jersey, was identified and reported to the NJDEP. The feeder cables are located within a subsurface easement granted to PSE&G by the property owners, Newport Associates Development Company (NADC) and Newport Associates Phase I Developer Limited Partnership. The feeder cables are subject to agreements between PSE&G and Consolidated Edison Company of New York, Inc. (Con Edison) and are jointly owned by PSE&G and Con Edison. The impacted cable was repaired in September 2017. A federal response was initially led by the U.S. Coast Guard. The U.S. Coast Guard transitioned control of the federal response to the EPA, and the EPA ended the federal response to the matter in 2018. The investigation of small amounts of residual dielectric fluid believed to be contained with the marina sediment is ongoing as part of the NJDEP site remediation program. We are currently in discussions with the federal government regarding the reimbursement of costs associated with the federal response to this matter and payment of civil penalties, in an amount expected to be immaterial to the financial statements of PSEG and PSE&G.
A lawsuit in federal court is pending to determine ultimate responsibility for the costs to address the leak among PSE&G, Con Edison and NADC. In addition, Con Edison filed counter claims against PSE&G and NADC, including seeking injunctive relief and damages. Based on the information currently available and depending on the outcome of the federal court action, PSE&G’s portion of the costs to address the leak may be material; however, PSE&G anticipates that it will recover its costs, other than civil penalties, through regulatory proceedings.
Basic Generation Service (BGS), BGSS and ZECs
PSE&G obtains its electric supply requirements through the annual New Jersey BGS auctions for two categories of customers who choose not to purchase electric supply from third-party suppliers. The first category, which represents about 79% of PSE&G’s load requirement, is residential and smaller commercial and industrial customers (BGS-Residential Small Commercial Pricing (RSCP)). The second category is larger customers that exceed a BPU-established load (kW) threshold (BGS-Commercial and Industrial Energy Pricing (CIEP)). 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 winning BGS suppliers, including PSEG Power, to purchase BGS for PSE&G’s load requirements. The winners of the auction (including PSEG 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.
The BGS-CIEP auction is for a one-year supply period from June 1 to May 31 with the BGS-CIEP auction price measured in dollars per MW-day for capacity. The final price for the BGS-CIEP auction year commencing June 1, 2020 is $359.98 per MW-day, replacing the BGS-CIEP auction year price ending May 31, 2020 of $281.78 per MW-day. Energy for BGS-CIEP is priced at hourly PJM locational marginal prices for the contract period.
PSE&G contracts for its anticipated BGS-RSCP load on a three-year rolling basis, whereby each year one-third of the load is procured for a three-year period. The contract prices in dollars per MWh for the BGS-RSCP supply, as well as the approximate load, are as follows:
 
 
 
 
 
 
 
 
 
 
 
 
 
Auction Year
 
 
 
 
2017
 
2018
 
2019
 
2020
 
 
 
36-Month Terms Ending
May 2020
 
May 2021
 
May 2022
 
May 2023
(A) 
 
 
Load (MW)
2,800
 
2,900
 
2,800
 
2,800
 
 
 
$ per MWh
$90.78
 
$91.77
 
$98.04
 
$102.16
 
 
 
 
 
 
 
 
 
 
 
 
 

(A)
Prices set in the 2020 BGS auction will become effective on June 1, 2020 when the 2017 BGS auction agreements expire.
PSEG 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, PSEG Power has entered into contracts to directly supply PSE&G and other New Jersey EDCs with a portion of their respective BGS requirements through the New Jersey BGS auction process, described above.
PSE&G has a full-requirements contract with PSEG Power to meet the gas supply requirements of PSE&G’s gas customers. PSEG 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 PSEG 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 20. Related-Party Transactions.
Pursuant to a process established by the BPU, New Jersey EDCs, including PSE&G, are required to purchase ZECs from eligible nuclear plants selected by the BPU. In April 2019, PSEG Power’s Salem 1, Salem 2 and Hope Creek nuclear plants were selected to receive ZEC revenue for approximately three years, through May 2022. PSE&G has implemented a tariff to collect a non-bypassable distribution charge in the amount of $0.004 per KWh from its retail distribution customers to be used to purchase the ZECs from these plants. PSE&G will purchase the ZECs on a monthly basis with payment to be made annually following completion of each energy year. The legislation also requires nuclear plants to reapply for any subsequent three-year periods and allows the BPU to adjust prospective ZEC payments.
Minimum Fuel Purchase Requirements
PSEG Power’s nuclear fuel 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. PSEG Power’s nuclear fuel commitments cover approximately 100% of its estimated uranium, enrichment and fabrication requirements through 2021 and a significant portion through 2022 at Salem, Hope Creek and Peach Bottom.
PSEG Power has various multi-year contracts for natural gas and firm transportation and storage capacity for natural gas that are primarily used to meet its obligations to PSE&G. When there is excess delivery capacity available beyond the needs of PSE&G’s customers, PSEG Power can use the gas to supply its fossil generating stations in New Jersey.
As of March 31, 2020, the total minimum purchase requirements included in these commitments were as follows:
 
 
 
 
 
 
Fuel Type
 
PSEG Power’s Share of Commitments through 2024
 
 
 
 
Millions
 
 
Nuclear Fuel
 
 
 
 
Uranium
 
$
189

 
 
Enrichment
 
$
336

 
 
Fabrication
 
$
175

 
 
Natural Gas
 
$
1,214

 
 
 
 
 
 

Pending FERC Matter
PSE&G has received requests for information and a Notice of Investigation from FERC’s Office of Enforcement concerning a transmission project. PSE&G retained outside counsel to assist with an internal investigation. PSE&G is fully cooperating with FERC’s requests for information and the investigation. It is not possible at this time to predict the outcome of this matter.
Litigation
Sewaren 7 Construction
In June 2018, a complaint was filed in federal court in Newark, New Jersey against PSEG Fossil LLC, a wholly owned subsidiary of PSEG Power, regarding an ongoing dispute with Durr Mechanical Construction, Inc. (Durr), a contractor on the Sewaren 7 project. Among other things, Durr seeks damages of $93 million and alleges that PSEG Power withheld money owed to Durr and that PSEG Power’s intentional conduct led to the inability of Durr to obtain prospective contracts. PSEG Power intends to vigorously defend against these allegations. In December 2018, Durr filed for Chapter 11 bankruptcy in the federal court in the Southern District of New York (SDNY). The SDNY bankruptcy court has allowed the New Jersey litigation to proceed. PSEG Power has accrued an amount related to outstanding invoices which does not reflect an assessment of claims and potential counterclaims in this matter. Due to its preliminary nature, PSEG Power cannot predict the outcome of this matter.
Other Litigation and Legal Proceedings
PSEG and its subsidiaries are party to various lawsuits in the ordinary course of business. In view of the inherent difficulty in predicting the outcome of such matters, PSEG, PSE&G and PSEG Power generally cannot predict the eventual outcome of the pending matters, the timing of the ultimate resolution of these matters, or the eventual loss, fines or penalties related to each pending matter.
In accordance with applicable accounting guidance, a liability is accrued when those matters present loss contingencies that are both probable and reasonably estimable. In such cases, there may be an exposure to loss in excess of any amounts accrued.
PSEG will continue to monitor the matter for further developments that could affect the amount of the accrued liability that has been previously established.
Based on current knowledge, management does not believe that loss contingencies arising from pending matters, other than the matters described herein, could have a material adverse effect on PSEG’s, PSE&G’s or PSEG Power’s consolidated financial position or liquidity. However, in light of the inherent uncertainties involved in these matters, some of which are beyond PSEG’s control, and the large or indeterminate damages sought in some of these matters, an adverse outcome in one or more of these matters could be material to PSEG’s, PSE&G’s or PSEG Power’s results of operations or liquidity for any particular reporting period.
Ongoing Coronavirus Pandemic
PSE&G, PSEG Power and PSEG LI are providing essential services during this national emergency related to the ongoing coronavirus (COVID-19) pandemic. The ongoing coronavirus pandemic has not had a material impact on our results of operations, financial condition or cash flows for the quarter ended March 31, 2020. However, the potential future impact of the pandemic and the associated economic impacts, which could extend beyond the duration of the pandemic, could have risks that drive certain accounting considerations. The ultimate impact of the ongoing coronavirus pandemic is highly uncertain and cannot be predicted at this time.
PSEG Power [Member]  
Loss Contingencies [Line Items]  
Commitments and Contingent Liabilities Commitments and Contingent Liabilities
Guaranteed Obligations
PSEG 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 as a form of collateral.
PSEG Power has unconditionally guaranteed payments to counterparties on behalf of 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.
PSEG Power is subject to
•
counterparty collateral calls related to commodity contracts of its subsidiaries, and
•
certain creditworthiness standards as guarantor under performance guarantees of its subsidiaries.
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 PSEG 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 PSEG Power has provided a guarantee, and
•
the net position of the related contracts would have to be “out-of-the-money” (if the contracts are terminated, PSEG Power would owe money to the counterparties).
PSEG Power believes the probability of this result is unlikely. For this reason, PSEG Power believes that the current exposure at any point in time is a more meaningful representation of the potential liability under these guarantees. Current exposure consists of the net of accounts receivable and accounts payable and the forward value on open positions, less any collateral posted.
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. PSEG 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, PSEG Power has also provided payment guarantees to third parties and regulatory authorities on behalf of its affiliated companies. These guarantees support various other non-commodity related obligations.
The following table shows the face value of PSEG Power’s outstanding guarantees, current exposure and margin positions as of March 31, 2020 and December 31, 2019.
 
 
 
 
 
 
 
 
As of
 
As of
 
 
 
March 31, 2020
 
December 31, 2019
 
 
 
Millions
 
 
Face Value of Outstanding Guarantees
$
1,856

 
$
1,854

 
 
Exposure under Current Guarantees
$
140

 
$
171

 
 
 
 
 
 
 
 
Letters of Credit Margin Posted
$
114

 
$
121

 
 
Letters of Credit Margin Received
$
94

 
$
29

 
 
 
 
 
 
 
 
Cash Deposited and Received:
 
 
 
 
 
Counterparty Cash Collateral Deposited
$
—

 
$
—

 
 
Counterparty Cash Collateral Received
$
(7
)
 
$
(4
)
 
 
   Net Broker Balance Deposited (Received)
$
(4
)
 
$
48

 
 
 
 
 
 
 
 
Additional Amounts Posted:
 
 
 
 
 
Other Letters of Credit
$
82

 
$
82

 
 
 
 
 
 
 

As part of determining credit exposure, PSEG Power nets receivables and payables with the corresponding net fair values of energy contracts. See Note 13. 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 Condensed Consolidated Balance Sheet. The remaining balances of net cash (received)/deposited after allocation are generally included in Accounts Payable and Receivable, respectively.
In addition to amounts for outstanding guarantees, current exposure and margin positions, PSEG and PSEG Power have posted letters of credit to support PSEG Power’s various other non-energy contractual and environmental obligations. See the preceding table.
Environmental Matters
Passaic River
Lower Passaic River Study Area    
The U.S. Environmental Protection Agency (EPA) has determined that a 17-mile stretch of the Passaic River (Lower Passaic River Study Area (LPRSA)) in New Jersey is a “Superfund” site under the Federal Comprehensive Environmental Response, Compensation and Liability Act of 1980 (CERCLA). PSE&G and certain of its predecessors conducted operations at properties in this area, including at one site that was transferred to PSEG Power.
Certain Potentially Responsible Parties (PRPs), including PSE&G and PSEG Power, formed a Cooperating Parties Group (CPG) and agreed to conduct a Remedial Investigation and Feasibility Study of the LPRSA. The CPG allocated, on an interim basis, the associated costs among its members. The interim allocation is subject to change. In June 2019, the EPA conditionally approved the CPG’s Remedial Investigation. In August 2019, the CPG submitted a draft Feasibility Study (FS) to the EPA which evaluated various adaptive management scenarios for the remediation of only the upper 9 miles of the LPRSA. The CPG is evaluating the EPA’s comments received to date on the draft FS.
Separately, the EPA has released a Record of Decision (ROD) for the LPRSA’s lower 8.3 miles that requires the removal of sediments at an estimated cost of $2.3 billion (ROD Remedy). An EPA-commenced process to allocate the associated costs is underway and PSEG cannot predict the outcome. The allocation does not address certain costs incurred by the EPA for which they may be entitled to reimbursement and which may be material. Occidental Chemical Corporation (OCC), one of the PRPs, has commenced the design of the ROD Remedy, but declined to participate in the allocation process. Instead, it filed suit against PSE&G and others seeking cost recovery and contribution under CERCLA but has not quantified alleged damages. The litigation is ongoing and PSEG cannot predict the outcome.
Two PRPs, Tierra Solutions, Inc. (Tierra) and Maxus Energy Corporation (Maxus), have filed for Chapter 11 bankruptcy. The trust representing the creditors in this proceeding has filed a complaint asserting claims against Tierra’s and Maxus’ current and former parent entities, among others. Any damages awarded may be used to fund the remediation of the LPRSA.
As of March 31, 2020, PSEG has accrued approximately $65 million for this matter. Of this amount, PSE&G has accrued $52 million as an Environmental Costs Liability and a corresponding Regulatory Asset based on its continued ability to recover
such costs in its rates. PSEG Power has accrued $13 million as an Other Noncurrent Liability with the corresponding O&M Expense.
The outcome of this matter is uncertain, and until (i) a final remedy for the entire LPRSA is selected and an agreement is reached by the PRPs to fund it, (ii) PSE&G’s and PSEG Power’s respective shares of the costs are determined, and (iii) PSE&G’s ability to recover the costs in its rates is determined, it is not possible to predict this matter’s ultimate impact on PSEG’s financial statements. It is possible that PSE&G and PSEG Power will record additional costs beyond what they have accrued, and that such costs could be material, but PSEG cannot at the current time estimate the amount or range of any additional costs.
Natural Resource Damage Claims
New Jersey and certain federal regulators have alleged that PSE&G, PSEG Power and 56 other PRPs may be liable for natural resource damages within the LPRSA. In particular, PSE&G, PSEG Power and other PRPs received notice from federal regulators of the regulators’ intent to move forward with a series of studies assessing potential damages to natural resources at the Diamond Alkali Superfund Site, which includes the LPRSA and the Newark Bay Study Area. PSE&G and PSEG Power are unable to estimate their respective portions of any possible loss or range of loss related to this matter.
Newark Bay Study Area
The EPA has established the Newark Bay Study Area, which is an extension of the LPRSA and includes Newark Bay and portions of surrounding waterways. The EPA has notified PSEG and 11 other PRPs of their potential liability. PSE&G and PSEG Power are unable to estimate their respective portions of any loss or possible range of loss related to this matter. In December 2018, PSEG Power completed the sale of the site of the Hudson electric generating station. PSEG Power contractually transferred all land rights and structures on the Hudson site to a third-party purchaser, along with the assumption of the environmental liabilities for the site.
Manufactured Gas Plant (MGP) Remediation Program
PSE&G is working with the New Jersey Department of Environmental Protection (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 $352 million and $395 million on an undiscounted basis through 2023, including its $52 million share for the Passaic River as discussed above. Since no amount within the range is considered to be most likely, PSE&G has recorded a liability of $352 million as of March 31, 2020. Of this amount, $69 million was recorded in Other Current Liabilities and $283 million was reflected as Environmental Costs in Noncurrent Liabilities. PSE&G has recorded a $352 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. PSE&G has agreed to conduct sampling in the Passaic River to delineate coal tar from certain MGP sites that abut the Passaic River Superfund site. PSEG cannot determine at this time whether this will have an impact on the Passaic River Superfund remedy.
Clean Water Act (CWA) Section 316(b) Rule
The EPA’s CWA Section 316(b) rule establishes requirements for the regulation of cooling water intakes at existing power plants and industrial facilities with a design flow of more than two million gallons of water per day. The EPA requires that National Pollutant Discharge Elimination System permits be renewed every five years and that each state Permitting Director manage renewal permits for its respective power generation facilities on a case by case basis. 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.
In June 2016, the NJDEP issued a final NJPDES permit for Salem. In July 2016, the Delaware Riverkeeper Network (Riverkeeper) filed an administrative hearing request challenging certain conditions of the permit, including the NJDEP’s application of the 316(b) rule. If the Riverkeeper’s challenge is successful, PSEG Power may be required to incur additional costs to comply with the CWA. Potential cooling water and/or service water system modification costs could be material and could adversely impact the economic competitiveness of this facility. The NJDEP had granted the hearing request but no hearing date has been established.
State permitting decisions at BH3 and New Haven could also have a material impact on PSEG Power’s ability to renew permits at its existing larger once-through cooled plants without making significant upgrades to existing intakes and cooling systems. PSEG Power has proposed to continue to operate BH3 without making the capital expenditures for modification to the existing intake structure and retire BH3 in 2021, which is four years earlier than the previously estimated useful life ending in 2025. PSEG Power is unable to predict the outcome of these permitting decisions and the effect, if any, that they may have on PSEG Power’s future capital requirements, financial condition or results of operations.
Jersey City, New Jersey Subsurface Feeder Cable Matter
In October 2016, a discharge of dielectric fluid from subsurface feeder cables located in the Hudson River near Jersey City, New Jersey, was identified and reported to the NJDEP. The feeder cables are located within a subsurface easement granted to PSE&G by the property owners, Newport Associates Development Company (NADC) and Newport Associates Phase I Developer Limited Partnership. The feeder cables are subject to agreements between PSE&G and Consolidated Edison Company of New York, Inc. (Con Edison) and are jointly owned by PSE&G and Con Edison. The impacted cable was repaired in September 2017. A federal response was initially led by the U.S. Coast Guard. The U.S. Coast Guard transitioned control of the federal response to the EPA, and the EPA ended the federal response to the matter in 2018. The investigation of small amounts of residual dielectric fluid believed to be contained with the marina sediment is ongoing as part of the NJDEP site remediation program. We are currently in discussions with the federal government regarding the reimbursement of costs associated with the federal response to this matter and payment of civil penalties, in an amount expected to be immaterial to the financial statements of PSEG and PSE&G.
A lawsuit in federal court is pending to determine ultimate responsibility for the costs to address the leak among PSE&G, Con Edison and NADC. In addition, Con Edison filed counter claims against PSE&G and NADC, including seeking injunctive relief and damages. Based on the information currently available and depending on the outcome of the federal court action, PSE&G’s portion of the costs to address the leak may be material; however, PSE&G anticipates that it will recover its costs, other than civil penalties, through regulatory proceedings.
Basic Generation Service (BGS), BGSS and ZECs
PSE&G obtains its electric supply requirements through the annual New Jersey BGS auctions for two categories of customers who choose not to purchase electric supply from third-party suppliers. The first category, which represents about 79% of PSE&G’s load requirement, is residential and smaller commercial and industrial customers (BGS-Residential Small Commercial Pricing (RSCP)). The second category is larger customers that exceed a BPU-established load (kW) threshold (BGS-Commercial and Industrial Energy Pricing (CIEP)). 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 winning BGS suppliers, including PSEG Power, to purchase BGS for PSE&G’s load requirements. The winners of the auction (including PSEG 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.
The BGS-CIEP auction is for a one-year supply period from June 1 to May 31 with the BGS-CIEP auction price measured in dollars per MW-day for capacity. The final price for the BGS-CIEP auction year commencing June 1, 2020 is $359.98 per MW-day, replacing the BGS-CIEP auction year price ending May 31, 2020 of $281.78 per MW-day. Energy for BGS-CIEP is priced at hourly PJM locational marginal prices for the contract period.
PSE&G contracts for its anticipated BGS-RSCP load on a three-year rolling basis, whereby each year one-third of the load is procured for a three-year period. The contract prices in dollars per MWh for the BGS-RSCP supply, as well as the approximate load, are as follows:
 
 
 
 
 
 
 
 
 
 
 
 
 
Auction Year
 
 
 
 
2017
 
2018
 
2019
 
2020
 
 
 
36-Month Terms Ending
May 2020
 
May 2021
 
May 2022
 
May 2023
(A) 
 
 
Load (MW)
2,800
 
2,900
 
2,800
 
2,800
 
 
 
$ per MWh
$90.78
 
$91.77
 
$98.04
 
$102.16
 
 
 
 
 
 
 
 
 
 
 
 
 

(A)
Prices set in the 2020 BGS auction will become effective on June 1, 2020 when the 2017 BGS auction agreements expire.
PSEG 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, PSEG Power has entered into contracts to directly supply PSE&G and other New Jersey EDCs with a portion of their respective BGS requirements through the New Jersey BGS auction process, described above.
PSE&G has a full-requirements contract with PSEG Power to meet the gas supply requirements of PSE&G’s gas customers. PSEG 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 PSEG 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 20. Related-Party Transactions.
Pursuant to a process established by the BPU, New Jersey EDCs, including PSE&G, are required to purchase ZECs from eligible nuclear plants selected by the BPU. In April 2019, PSEG Power’s Salem 1, Salem 2 and Hope Creek nuclear plants were selected to receive ZEC revenue for approximately three years, through May 2022. PSE&G has implemented a tariff to collect a non-bypassable distribution charge in the amount of $0.004 per KWh from its retail distribution customers to be used to purchase the ZECs from these plants. PSE&G will purchase the ZECs on a monthly basis with payment to be made annually following completion of each energy year. The legislation also requires nuclear plants to reapply for any subsequent three-year periods and allows the BPU to adjust prospective ZEC payments.
Minimum Fuel Purchase Requirements
PSEG Power’s nuclear fuel 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. PSEG Power’s nuclear fuel commitments cover approximately 100% of its estimated uranium, enrichment and fabrication requirements through 2021 and a significant portion through 2022 at Salem, Hope Creek and Peach Bottom.
PSEG Power has various multi-year contracts for natural gas and firm transportation and storage capacity for natural gas that are primarily used to meet its obligations to PSE&G. When there is excess delivery capacity available beyond the needs of PSE&G’s customers, PSEG Power can use the gas to supply its fossil generating stations in New Jersey.
As of March 31, 2020, the total minimum purchase requirements included in these commitments were as follows:
 
 
 
 
 
 
Fuel Type
 
PSEG Power’s Share of Commitments through 2024
 
 
 
 
Millions
 
 
Nuclear Fuel
 
 
 
 
Uranium
 
$
189

 
 
Enrichment
 
$
336

 
 
Fabrication
 
$
175

 
 
Natural Gas
 
$
1,214

 
 
 
 
 
 

Pending FERC Matter
PSE&G has received requests for information and a Notice of Investigation from FERC’s Office of Enforcement concerning a transmission project. PSE&G retained outside counsel to assist with an internal investigation. PSE&G is fully cooperating with FERC’s requests for information and the investigation. It is not possible at this time to predict the outcome of this matter.
Litigation
Sewaren 7 Construction
In June 2018, a complaint was filed in federal court in Newark, New Jersey against PSEG Fossil LLC, a wholly owned subsidiary of PSEG Power, regarding an ongoing dispute with Durr Mechanical Construction, Inc. (Durr), a contractor on the Sewaren 7 project. Among other things, Durr seeks damages of $93 million and alleges that PSEG Power withheld money owed to Durr and that PSEG Power’s intentional conduct led to the inability of Durr to obtain prospective contracts. PSEG Power intends to vigorously defend against these allegations. In December 2018, Durr filed for Chapter 11 bankruptcy in the federal court in the Southern District of New York (SDNY). The SDNY bankruptcy court has allowed the New Jersey litigation to proceed. PSEG Power has accrued an amount related to outstanding invoices which does not reflect an assessment of claims and potential counterclaims in this matter. Due to its preliminary nature, PSEG Power cannot predict the outcome of this matter.
Other Litigation and Legal Proceedings
PSEG and its subsidiaries are party to various lawsuits in the ordinary course of business. In view of the inherent difficulty in predicting the outcome of such matters, PSEG, PSE&G and PSEG Power generally cannot predict the eventual outcome of the pending matters, the timing of the ultimate resolution of these matters, or the eventual loss, fines or penalties related to each pending matter.
In accordance with applicable accounting guidance, a liability is accrued when those matters present loss contingencies that are both probable and reasonably estimable. In such cases, there may be an exposure to loss in excess of any amounts accrued.
PSEG will continue to monitor the matter for further developments that could affect the amount of the accrued liability that has been previously established.
Based on current knowledge, management does not believe that loss contingencies arising from pending matters, other than the matters described herein, could have a material adverse effect on PSEG’s, PSE&G’s or PSEG Power’s consolidated financial position or liquidity. However, in light of the inherent uncertainties involved in these matters, some of which are beyond PSEG’s control, and the large or indeterminate damages sought in some of these matters, an adverse outcome in one or more of these matters could be material to PSEG’s, PSE&G’s or PSEG Power’s results of operations or liquidity for any particular reporting period.
Ongoing Coronavirus Pandemic
PSE&G, PSEG Power and PSEG LI are providing essential services during this national emergency related to the ongoing coronavirus (COVID-19) pandemic. The ongoing coronavirus pandemic has not had a material impact on our results of operations, financial condition or cash flows for the quarter ended March 31, 2020. However, the potential future impact of the pandemic and the associated economic impacts, which could extend beyond the duration of the pandemic, could have risks that drive certain accounting considerations. The ultimate impact of the ongoing coronavirus pandemic is highly uncertain and cannot be predicted at this time.
v3.20.1
Debt and Credit Facilities
 3 Months Ended
Mar. 31, 2020
Debt Instrument [Line Items]  
Debt and Credit Facilities Debt and Credit Facilities
Long-Term Debt Financing Transactions
The following long-term debt transactions occurred in the three months ended March 31, 2020:
PSE&G
•
issued $300 million of 2.45% Secured Medium-Term Notes, Series N, due January 2030, and
•
issued $300 million of 3.15% Secured Medium-Term Notes, Series N, due January 2050.
Short-Term Liquidity
PSEG meets its short-term liquidity requirements, as well as those of PSEG Power, primarily with cash and through the issuance of commercial paper and, from time to time, short-term loans. PSE&G maintains its own separate commercial paper program to meet its short-term liquidity requirements. Each commercial paper program is fully back-stopped by its own separate credit facilities.
The commitments under the $4.2 billion credit facilities are provided by a diverse bank group. As of March 31, 2020, the total available credit capacity was $3.2 billion.
As of March 31, 2020, no single institution represented more than 9% of the total commitments in the credit facilities.
As of March 31, 2020, total credit capacity was in excess of the total anticipated maximum liquidity requirements over PSEG’s 12-month planning horizon.
Each of the credit facilities is restricted as to availability and use to the specific companies as listed in the following table; however, if necessary, the PSEG facilities can also be used to support its subsidiaries’ liquidity needs.
The total credit facilities and available liquidity as of March 31, 2020 were as follows:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of March 31, 2020
 
 
 
 
 
 
Company/Facility
 
Total
Facility
 
Usage (D)
 
Available
Liquidity
 
Expiration
Date
 
Primary Purpose
 
 
 
 
Millions
 
 
 
 
 
 
PSEG
 
 
 
 
 
 
 
 
 
 
 
 
  5-year Credit Facilities (A)
 
$
1,500

 
$
806

 
$
694

 
Mar 2024
 
Commercial Paper Support/Funding/Letters of Credit
 
 
Total PSEG
 
$
1,500

 
$
806

 
$
694

 
 
 
 
 
 
PSE&G
 
 
 
 
 
 
 
 
 
 
 
 
  5-year Credit Facility (B)
 
$
600

 
$
17

 
$
583

 
Mar 2024
 
Commercial Paper Support/Funding/Letters of Credit
 
 
Total PSE&G
 
$
600

 
$
17

 
$
583

 
 
 
 
 
 
PSEG Power
 
 
 
 
 
 
 
 
 
 
 
 
  3-year Letter of Credit Facilities
 
$
200

 
$
114

 
$
86

 
Sept 2021
 
Letters of Credit
 
 
  5-year Credit Facilities (C)
 
1,900

 
40

 
1,860

 
Mar 2024
 
Funding/Letters of Credit
 
 
Total PSEG Power
 
$
2,100

 
$
154

 
$
1,946

 
 
 
 
 
 
Total
 
$
4,200

 
$
977

 
$
3,223

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

(A)
PSEG facilities will be reduced by $9 million in March 2022.
(B)
PSE&G facility will be reduced by $4 million in March 2022.
(C)
PSEG Power facilities will be reduced by $12 million in March 2022.
(D)
The primary use of PSEG’s and PSE&G’s credit facilities is to support their respective Commercial Paper Programs, under which as of March 31, 2020, PSEG had $762 million outstanding at a weighted average interest rate of 3.4%. PSE&G had no commercial paper outstanding under its Commercial Paper Program as of March 31, 2020.
Except as otherwise noted in the table above, in March 2020, PSEG, PSE&G and PSEG Power and their respective lenders agreed to extend the expiration dates on their credit agreements from March 2023 to March 2024.
Short-Term Loans
PSEG
In March 2020, PSEG entered into a $300 million, 364-day variable rate term loan agreement and in April 2020 it entered into two 364-day variable rate term loan agreements for $200 million and $300 million.
Public Service Electric and Gas Company [Member]  
Debt Instrument [Line Items]  
Debt and Credit Facilities Debt and Credit Facilities
Long-Term Debt Financing Transactions
The following long-term debt transactions occurred in the three months ended March 31, 2020:
PSE&G
•
issued $300 million of 2.45% Secured Medium-Term Notes, Series N, due January 2030, and
•
issued $300 million of 3.15% Secured Medium-Term Notes, Series N, due January 2050.
Short-Term Liquidity
PSEG meets its short-term liquidity requirements, as well as those of PSEG Power, primarily with cash and through the issuance of commercial paper and, from time to time, short-term loans. PSE&G maintains its own separate commercial paper program to meet its short-term liquidity requirements. Each commercial paper program is fully back-stopped by its own separate credit facilities.
The commitments under the $4.2 billion credit facilities are provided by a diverse bank group. As of March 31, 2020, the total available credit capacity was $3.2 billion.
As of March 31, 2020, no single institution represented more than 9% of the total commitments in the credit facilities.
As of March 31, 2020, total credit capacity was in excess of the total anticipated maximum liquidity requirements over PSEG’s 12-month planning horizon.
Each of the credit facilities is restricted as to availability and use to the specific companies as listed in the following table; however, if necessary, the PSEG facilities can also be used to support its subsidiaries’ liquidity needs.
The total credit facilities and available liquidity as of March 31, 2020 were as follows:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of March 31, 2020
 
 
 
 
 
 
Company/Facility
 
Total
Facility
 
Usage (D)
 
Available
Liquidity
 
Expiration
Date
 
Primary Purpose
 
 
 
 
Millions
 
 
 
 
 
 
PSEG
 
 
 
 
 
 
 
 
 
 
 
 
  5-year Credit Facilities (A)
 
$
1,500

 
$
806

 
$
694

 
Mar 2024
 
Commercial Paper Support/Funding/Letters of Credit
 
 
Total PSEG
 
$
1,500

 
$
806

 
$
694

 
 
 
 
 
 
PSE&G
 
 
 
 
 
 
 
 
 
 
 
 
  5-year Credit Facility (B)
 
$
600

 
$
17

 
$
583

 
Mar 2024
 
Commercial Paper Support/Funding/Letters of Credit
 
 
Total PSE&G
 
$
600

 
$
17

 
$
583

 
 
 
 
 
 
PSEG Power
 
 
 
 
 
 
 
 
 
 
 
 
  3-year Letter of Credit Facilities
 
$
200

 
$
114

 
$
86

 
Sept 2021
 
Letters of Credit
 
 
  5-year Credit Facilities (C)
 
1,900

 
40

 
1,860

 
Mar 2024
 
Funding/Letters of Credit
 
 
Total PSEG Power
 
$
2,100

 
$
154

 
$
1,946

 
 
 
 
 
 
Total
 
$
4,200

 
$
977

 
$
3,223

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

(A)
PSEG facilities will be reduced by $9 million in March 2022.
(B)
PSE&G facility will be reduced by $4 million in March 2022.
(C)
PSEG Power facilities will be reduced by $12 million in March 2022.
(D)
The primary use of PSEG’s and PSE&G’s credit facilities is to support their respective Commercial Paper Programs, under which as of March 31, 2020, PSEG had $762 million outstanding at a weighted average interest rate of 3.4%. PSE&G had no commercial paper outstanding under its Commercial Paper Program as of March 31, 2020.
Except as otherwise noted in the table above, in March 2020, PSEG, PSE&G and PSEG Power and their respective lenders agreed to extend the expiration dates on their credit agreements from March 2023 to March 2024.
Short-Term Loans
PSEG
In March 2020, PSEG entered into a $300 million, 364-day variable rate term loan agreement and in April 2020 it entered into two 364-day variable rate term loan agreements for $200 million and $300 million.
PSEG Power [Member]  
Debt Instrument [Line Items]  
Debt and Credit Facilities Debt and Credit Facilities
Long-Term Debt Financing Transactions
The following long-term debt transactions occurred in the three months ended March 31, 2020:
PSE&G
•
issued $300 million of 2.45% Secured Medium-Term Notes, Series N, due January 2030, and
•
issued $300 million of 3.15% Secured Medium-Term Notes, Series N, due January 2050.
Short-Term Liquidity
PSEG meets its short-term liquidity requirements, as well as those of PSEG Power, primarily with cash and through the issuance of commercial paper and, from time to time, short-term loans. PSE&G maintains its own separate commercial paper program to meet its short-term liquidity requirements. Each commercial paper program is fully back-stopped by its own separate credit facilities.
The commitments under the $4.2 billion credit facilities are provided by a diverse bank group. As of March 31, 2020, the total available credit capacity was $3.2 billion.
As of March 31, 2020, no single institution represented more than 9% of the total commitments in the credit facilities.
As of March 31, 2020, total credit capacity was in excess of the total anticipated maximum liquidity requirements over PSEG’s 12-month planning horizon.
Each of the credit facilities is restricted as to availability and use to the specific companies as listed in the following table; however, if necessary, the PSEG facilities can also be used to support its subsidiaries’ liquidity needs.
The total credit facilities and available liquidity as of March 31, 2020 were as follows:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of March 31, 2020
 
 
 
 
 
 
Company/Facility
 
Total
Facility
 
Usage (D)
 
Available
Liquidity
 
Expiration
Date
 
Primary Purpose
 
 
 
 
Millions
 
 
 
 
 
 
PSEG
 
 
 
 
 
 
 
 
 
 
 
 
  5-year Credit Facilities (A)
 
$
1,500

 
$
806

 
$
694

 
Mar 2024
 
Commercial Paper Support/Funding/Letters of Credit
 
 
Total PSEG
 
$
1,500

 
$
806

 
$
694

 
 
 
 
 
 
PSE&G
 
 
 
 
 
 
 
 
 
 
 
 
  5-year Credit Facility (B)
 
$
600

 
$
17

 
$
583

 
Mar 2024
 
Commercial Paper Support/Funding/Letters of Credit
 
 
Total PSE&G
 
$
600

 
$
17

 
$
583

 
 
 
 
 
 
PSEG Power
 
 
 
 
 
 
 
 
 
 
 
 
  3-year Letter of Credit Facilities
 
$
200

 
$
114

 
$
86

 
Sept 2021
 
Letters of Credit
 
 
  5-year Credit Facilities (C)
 
1,900

 
40

 
1,860

 
Mar 2024
 
Funding/Letters of Credit
 
 
Total PSEG Power
 
$
2,100

 
$
154

 
$
1,946

 
 
 
 
 
 
Total
 
$
4,200

 
$
977

 
$
3,223

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

(A)
PSEG facilities will be reduced by $9 million in March 2022.
(B)
PSE&G facility will be reduced by $4 million in March 2022.
(C)
PSEG Power facilities will be reduced by $12 million in March 2022.
(D)
The primary use of PSEG’s and PSE&G’s credit facilities is to support their respective Commercial Paper Programs, under which as of March 31, 2020, PSEG had $762 million outstanding at a weighted average interest rate of 3.4%. PSE&G had no commercial paper outstanding under its Commercial Paper Program as of March 31, 2020.
Except as otherwise noted in the table above, in March 2020, PSEG, PSE&G and PSEG Power and their respective lenders agreed to extend the expiration dates on their credit agreements from March 2023 to March 2024.
Short-Term Loans
PSEG
In March 2020, PSEG entered into a $300 million, 364-day variable rate term loan agreement and in April 2020 it entered into two 364-day variable rate term loan agreements for $200 million and $300 million.
v3.20.1
Financial Risk Management Activities
 3 Months Ended
Mar. 31, 2020
Derivative Instruments and Hedging Activities Disclosures [Line Items]  
Financial Risk Management Activities Financial Risk Management Activities
Derivative accounting guidance requires that a derivative instrument be recognized as either an asset or a liability at fair value, with changes in fair value of the derivative recognized in earnings each period. Other accounting treatments are available through special election and designation provided that the derivative instrument meets specific, restrictive criteria, both at the time of designation and on an ongoing basis. These alternative permissible treatments include normal purchases and normal sales (NPNS), cash flow hedge and fair value hedge accounting. PSEG, PSEG Power and PSE&G have applied the NPNS scope exception to certain derivative contracts for the forward sale of generation, power procurement agreements and fuel agreements. PSEG uses interest rate swaps and other derivatives, which are designated and qualifying as cash flow or fair value hedges. PSEG Power enters into additional contracts that are derivatives, but are not designated as either cash flow hedges or fair value hedges. These transactions are economic hedges and are recorded at fair market value with changes recognized in earnings.
Commodity Prices
Within PSEG and its affiliate companies, PSEG Power has the most exposure to commodity price risk. PSEG Power is exposed to commodity price risk primarily relating to changes in the market price of electricity, fossil fuels and other commodities. Fluctuations in market prices result from changes in supply and demand, fuel costs, market conditions, weather, state and federal regulatory policies, environmental policies, transmission availability and other factors. PSEG Power uses a variety of derivative and non-derivative instruments, such as financial options, futures, swaps, fuel purchases and forward purchases and
sales of electricity, to manage the exposure to fluctuations in commodity prices and optimize the value of PSEG Power’s expected generation. PSEG Power also uses derivatives to hedge a portion of its anticipated BGSS obligations with PSE&G. For additional information see Note 11. Commitments and Contingent Liabilities. Changes in the fair market value of these derivative contracts are recorded in earnings.
Interest Rates
PSEG, 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 and interest rate swaps.
Fair Value Hedges
PSEG enters into fair value hedges to convert fixed-rate debt into variable-rate debt. The changes in fair value of the interest rate swaps are fully offset by changes in the fair value of the underlying forecasted interest payments of the debt. There were no outstanding interest rate swaps as of March 31, 2020 or December 31, 2019.
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. As of March 31, 2020, PSEG had interest rate hedges outstanding totaling $700 million. These hedges convert PSEG’s $700 million variable-rate term loan due November 2020 into a fixed-rate loan.
The fair value of these hedges was $(10) million and $(5) million as of March 31, 2020 and December 31, 2019, respectively. The Accumulated Other Comprehensive Income (Loss) (after tax) related to outstanding and terminated interest rate derivatives designated as cash flow hedges was $(18) million and $(15) million as of March 31, 2020 and December 31, 2019, respectively. The after-tax unrealized losses on these hedges expected to be reclassified to earnings during the next 12 months are $(2) million.
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. 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 PSEG’s accounting policy, these positions are offset on the Condensed Consolidated Balance Sheets of PSEG Power and PSEG. For additional information see Note 14. Fair Value Measurements. The following tabular disclosure does not include the offsetting of trade receivables and payables.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of March 31, 2020
 
 
 
 
PSEG Power (A)
 
PSEG (A)
 
Consolidated
 
 
 
 
Not Designated
 
 
 
 
 
Cash Flow Hedges
 
 
 
 
Balance Sheet Location
 
Energy-
Related
Contracts
 
Netting
(B)
 
Total
PSEG Power
 
Interest
Rate
Swaps
 
Total
Derivatives
 
 
 
 
Millions
 
 
Derivative Contracts
 
 
 
 
 
 
 
 
 
 
 
 
Current Assets
 
$
878

 
$
(709
)
 
$
169

 
$
—

 
$
169

 
 
Noncurrent Assets
 
299

 
(230
)
 
69

 
—

 
69

 
 
Total Mark-to-Market Derivative Assets
 
$
1,177

 
$
(939
)
 
$
238

 
$
—

 
$
238

 
 
Derivative Contracts
 
 
 
 
 
 
 
 
 
 
 
 
Current Liabilities
 
$
(732
)
 
$
702

 
$
(30
)
 
$
(10
)
 
$
(40
)
 
 
Noncurrent Liabilities
 
(227
)
 
224

 
(3
)
 
—

 
(3
)
 
 
Total Mark-to-Market Derivative (Liabilities)
 
$
(959
)
 
$
926

 
$
(33
)
 
$
(10
)
 
$
(43
)
 
 
Total Net Mark-to-Market Derivative Assets (Liabilities)
 
$
218

 
$
(13
)
 
$
205

 
$
(10
)
 
$
195

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of December 31, 2019
 
 
 
 
PSEG Power (A)
 
PSEG (A)
 
Consolidated
 
 
 
 
Not Designated
 
 
 
 
 
Cash Flow Hedges
 
 
 
 
Balance Sheet Location
 
Energy-
Related
Contracts
 
Netting
(B)
 
Total
PSEG Power
 
Interest
Rate
Swaps
 
Total
Derivatives
 
 
 
 
Millions
 
 
Derivative Contracts
 
 
 
 
 
 
 
 
 
 
 
 
Current Assets
 
$
636

 
$
(523
)
 
$
113

 
$
—

 
$
113

 
 
Noncurrent Assets
 
163

 
(139
)
 
24

 
—

 
24

 
 
Total Mark-to-Market Derivative Assets
 
$
799

 
$
(662
)
 
$
137

 
$
—

 
$
137

 
 
Derivative Contracts
 
 
 
 
 
 
 
 
 
 
 
 
Current Liabilities
 
$
(553
)
 
$
522

 
$
(31
)
 
$
(5
)
 
$
(36
)
 
 
Noncurrent Liabilities
 
(139
)
 
138

 
(1
)
 
—

 
(1
)
 
 
Total Mark-to-Market Derivative (Liabilities)
 
$
(692
)
 
$
660

 
$
(32
)
 
$
(5
)
 
$
(37
)
 
 
Total Net Mark-to-Market Derivative Assets (Liabilities)
 
$
107

 
$
(2
)
 
$
105

 
$
(5
)
 
$
100

 
 
 
 
 
 
 
 
 
 
 
 
 
 
(A)
Substantially all of PSEG 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 March 31, 2020 and December 31, 2019.
(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) posted that has been allocated to derivative positions, where the right of offset exists, has been offset on the Condensed Consolidated Balance Sheets. As of March 31, 2020 and December 31, 2019, PSEG Power had net cash collateral (receipts) payments to counterparties of $(11) million and $44 million, respectively. Of these net cash collateral (receipts) payments, $(13) million as of March 31, 2020 and $(2) million as of December 31, 2019 were netted against the corresponding net derivative contract positions. Of the $(13) million as of March 31, 2020, $(7) million was netted against current assets and $(6) million was netted against noncurrent assets. Of the $(2) million as of December 31, 2019, $(1) million was netted against current assets and $(1) million was netted against noncurrent assets.
Certain of PSEG Power’s derivative instruments contain provisions that require PSEG Power to post collateral. This collateral may be posted in the form of cash or credit support with thresholds contingent upon PSEG 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 PSEG Power were to be downgraded to a below investment grade rating by S&P or Moody’s, it would be required to provide additional collateral. A below investment grade credit rating for PSEG Power would represent a three level downgrade from its current S&P or Moody’s ratings. 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. PSEG 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 the 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 the NYMEX and ICE that are fully collateralized) was $37 million and $35 million as of March 31, 2020 and December 31, 2019, respectively. As of March 31, 2020 and December 31, 2019, PSEG Power had the contractual right of offset of $4 million and $2 million, respectively, related to derivative instruments that are assets with the same counterparty under master agreements and net of margin posted. If PSEG Power had been downgraded to a below investment grade rating, it would have had additional collateral obligations of $33 million as of March 31, 2020 and December 31, 2019 related to its derivatives, net of the contractual right of offset under master agreements and the application of collateral.
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 March 31, 2020 and 2019:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivatives in Cash Flow
Hedging Relationships
 
Amount of Pre-Tax
Gain (Loss)
Recognized in AOCI on Derivatives
 
Location of
Pre-Tax Gain (Loss) Reclassified from AOCI into Income
 
Amount of Pre-Tax
Gain (Loss)
Reclassified from AOCI into Income
 
 
 
Three Months Ended
 
 
 
Three Months Ended
 
 
 
March 31,
 
 
 
March 31,
 
 
 
2020
 
2019
 
 
 
2020
 
2019
 
 
 
 
Millions
 
 
 
Millions
 
 
PSEG
 
 
 
 
 
 
 
 
 
 
 
 
Interest Rate Swaps
 
$
(6
)
 
$
(5
)
 
Interest Expense
 
$
(2
)
 
$
—

 
 
Total PSEG
 
$
(6
)
 
$
(5
)
 
 
 
$
(2
)
 
$
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 

The effect of interest rate cash flow hedges is recorded in Interest Expense in PSEG’s Condensed Consolidated Statement of Operations. For the three months ended March 31, 2020, the amount of gain or loss on interest rate hedges reclassified from Accumulated Other Comprehensive Income (Loss) into income was $(1) million after-tax. The amount of gain or loss on interest rate hedges reclassified from Accumulated Other Comprehensive Income (Loss) into income for the three months ended March 31, 2019 was immaterial.
The following reconciles the Accumulated Other Comprehensive Income (Loss) for derivative activity included in the Accumulated Other Comprehensive Loss of PSEG on a pre-tax and after-tax basis.
 
 
 
 
 
 
 
 
Accumulated Other Comprehensive Income (Loss)
 
Pre-Tax
 
After-Tax
 
 
 
 
Millions
 
 
Balance as of December 31, 2018
 
$
(2
)
 
$
(1
)
 
 
Loss Recognized in AOCI
 
(23
)
 
(17
)
 
 
Less: Loss Reclassified into Income
 
4

 
3

 
 
Balance as of December 31, 2019
 
$
(21
)
 
$
(15
)
 
 
Loss Recognized in AOCI
 
(6
)
 
(4
)
 
 
Less: Loss Reclassified into Income
 
2

 
1

 
 
Balance as of March 31, 2020
 
$
(25
)
 
$
(18
)
 
 
 
 
 
 
 
 

The following shows the effect on the Condensed Consolidated Statements of Operations of derivative instruments not designated as hedging instruments or as NPNS for the three months ended March 31, 2020 and 2019, respectively. PSEG Power’s derivative contracts reflected in this table include contracts to hedge the purchase and sale of electricity and natural gas, and the purchase of fuel. The table does not include contracts that PSEG Power has designated as NPNS, such as its BGS contracts and certain other energy supply contracts that it has with other utilities and companies with retail load.
 
 
 
 
 
 
 
 
 
Derivatives Not Designated as Hedges
 
Location of Pre-Tax
Gain (Loss)
Recognized in Income
on Derivatives
Pre-Tax Gain (Loss) Recognized in Income on Derivatives
 
 
 
 
 
Three Months Ended
 
 
 
 
 
March 31,
 
 
 
 
 
2020
 
2019
 
 
 
 
 
Millions
 
 
PSEG and PSEG Power
 
 
 
 
 
 
 
Energy-Related Contracts
 
Operating Revenues
$
231

 
$
139

 
 
Energy-Related Contracts
 
Energy Costs
(68
)
 
(13
)
 
 
Total PSEG and PSEG Power
 
 
$
163

 
$
126

 
 
 
 
 
 
 
 
 

The following table summarizes the net notional volume purchases/(sales) of open derivative transactions by commodity as of March 31, 2020 and December 31, 2019.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Type
 
Notional
 
Total
 
PSEG
 
PSEG Power
 
PSE&G
 
 
 
 
 
 
Millions
 
 
As of March 31, 2020
 
 
 
 
 
 
 
 
 
 
 
 
Natural Gas
 
Dekatherm (Dth)
 
449

 
—

 
449

 
—

 
 
Electricity
 
MWh
 
(60
)
 
—

 
(60
)
 
—

 
 
Financial Transmission Rights (FTRs)
 
MWh
 
8

 
—

 
8

 
—

 
 
Interest Rate Swaps
 
U.S. Dollars
 
700

 
700

 
—

 
—

 
 
As of December 31, 2019
 
 
 
 
 
 
 
 
 
 
 
 
Natural Gas
 
Dth
 
341

 
—

 
341

 
—

 
 
Electricity
 
MWh
 
(62
)
 
—

 
(62
)
 
—

 
 
FTRs
 
MWh
 
13

 
—

 
13

 
—

 
 
Interest Rate Swaps
 
U.S. Dollars
 
700

 
700

 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 

Credit Risk
Credit risk relates to the risk of loss that PSEG Power would incur as a result of non-performance by counterparties pursuant to the terms of their contractual obligations. PSEG has established credit policies that it believes 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 PSEG Power’s and PSEG’s financial condition, results of operations or net cash flows.
The following table provides information on PSEG Power’s credit risk from wholesale counterparties, net of collateral, as of March 31, 2020. It further delineates that exposure by the credit rating of the counterparties, which is determined by the lowest rating from S&P, Moody’s or an internal scoring model. In addition, it provides guidance on the concentration of credit risk to individual counterparties and an indication of the quality of PSEG Power’s credit risk by credit rating of the counterparties.
As of March 31, 2020, 99% of the net credit exposure for PSEG Power’s wholesale 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, NPNS and non-derivatives).
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Rating
 
Current
Exposure
 
Securities Held as Collateral
 
Net
Exposure
 
Number of
Counterparties
>10%
 
Net Exposure of
Counterparties
>10%
 
 
 
 
 
Millions
 
 
 
Millions
 
 
 
Investment Grade
 
$
488

 
$
93

 
$
395

 
3

 
$
235

(A)
 
 
Non-Investment Grade
 
4

 
—

 
4

 
—

 
—

  
 
 
Total
 
$
492

 
$
93

 
$
399

 
3

 
$
235

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(A)
Represents net exposure of $137 million with PSE&G and $98 million with two non-affiliated counterparties.
As of March 31, 2020, collateral held from counterparties where PSEG Power had credit exposure included $6 million in cash collateral and $87 million in letters of credit.
As of March 31, 2020, PSEG Power had 141 active counterparties.
PSE&G’s supplier master agreements are approved by the BPU and govern the terms of its electric supply procurement contracts. These agreements define a supplier’s performance assurance requirements and allow a supplier to meet its credit requirements with a certain amount of unsecured credit. The amount of unsecured credit is determined based on the supplier’s credit ratings from the major credit rating agencies and the supplier’s tangible net worth. The credit position is based on the initial market price, which is the forward price of energy on the day the procurement transaction is executed, compared to the forward price curve for energy on the valuation day. To the extent that the forward price curve for energy exceeds the initial market price, the supplier is required to post a parental guaranty or other security instrument such as a letter of credit or cash, as collateral to the extent the credit exposure is greater than the supplier’s unsecured credit limit. As of March 31, 2020, primarily all of the posted collateral was in the form of parental guarantees. The unsecured credit used by the suppliers represents PSE&G’s net credit exposure. PSE&G’s BGS suppliers’ credit exposure is calculated each business day. As of March 31, 2020, PSE&G had no net credit exposure with suppliers, including PSEG Power.
PSE&G is permitted to recover its costs of procuring energy through the BPU-approved BGS tariffs. PSE&G’s counterparty credit risk is mitigated by its ability to recover realized energy costs through customer rates.
Public Service Electric and Gas Company [Member]  
Derivative Instruments and Hedging Activities Disclosures [Line Items]  
Financial Risk Management Activities Financial Risk Management Activities
Derivative accounting guidance requires that a derivative instrument be recognized as either an asset or a liability at fair value, with changes in fair value of the derivative recognized in earnings each period. Other accounting treatments are available through special election and designation provided that the derivative instrument meets specific, restrictive criteria, both at the time of designation and on an ongoing basis. These alternative permissible treatments include normal purchases and normal sales (NPNS), cash flow hedge and fair value hedge accounting. PSEG, PSEG Power and PSE&G have applied the NPNS scope exception to certain derivative contracts for the forward sale of generation, power procurement agreements and fuel agreements. PSEG uses interest rate swaps and other derivatives, which are designated and qualifying as cash flow or fair value hedges. PSEG Power enters into additional contracts that are derivatives, but are not designated as either cash flow hedges or fair value hedges. These transactions are economic hedges and are recorded at fair market value with changes recognized in earnings.
Commodity Prices
Within PSEG and its affiliate companies, PSEG Power has the most exposure to commodity price risk. PSEG Power is exposed to commodity price risk primarily relating to changes in the market price of electricity, fossil fuels and other commodities. Fluctuations in market prices result from changes in supply and demand, fuel costs, market conditions, weather, state and federal regulatory policies, environmental policies, transmission availability and other factors. PSEG Power uses a variety of derivative and non-derivative instruments, such as financial options, futures, swaps, fuel purchases and forward purchases and
sales of electricity, to manage the exposure to fluctuations in commodity prices and optimize the value of PSEG Power’s expected generation. PSEG Power also uses derivatives to hedge a portion of its anticipated BGSS obligations with PSE&G. For additional information see Note 11. Commitments and Contingent Liabilities. Changes in the fair market value of these derivative contracts are recorded in earnings.
Interest Rates
PSEG, 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 and interest rate swaps.
Fair Value Hedges
PSEG enters into fair value hedges to convert fixed-rate debt into variable-rate debt. The changes in fair value of the interest rate swaps are fully offset by changes in the fair value of the underlying forecasted interest payments of the debt. There were no outstanding interest rate swaps as of March 31, 2020 or December 31, 2019.
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. As of March 31, 2020, PSEG had interest rate hedges outstanding totaling $700 million. These hedges convert PSEG’s $700 million variable-rate term loan due November 2020 into a fixed-rate loan.
The fair value of these hedges was $(10) million and $(5) million as of March 31, 2020 and December 31, 2019, respectively. The Accumulated Other Comprehensive Income (Loss) (after tax) related to outstanding and terminated interest rate derivatives designated as cash flow hedges was $(18) million and $(15) million as of March 31, 2020 and December 31, 2019, respectively. The after-tax unrealized losses on these hedges expected to be reclassified to earnings during the next 12 months are $(2) million.
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. 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 PSEG’s accounting policy, these positions are offset on the Condensed Consolidated Balance Sheets of PSEG Power and PSEG. For additional information see Note 14. Fair Value Measurements. The following tabular disclosure does not include the offsetting of trade receivables and payables.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of March 31, 2020
 
 
 
 
PSEG Power (A)
 
PSEG (A)
 
Consolidated
 
 
 
 
Not Designated
 
 
 
 
 
Cash Flow Hedges
 
 
 
 
Balance Sheet Location
 
Energy-
Related
Contracts
 
Netting
(B)
 
Total
PSEG Power
 
Interest
Rate
Swaps
 
Total
Derivatives
 
 
 
 
Millions
 
 
Derivative Contracts
 
 
 
 
 
 
 
 
 
 
 
 
Current Assets
 
$
878

 
$
(709
)
 
$
169

 
$
—

 
$
169

 
 
Noncurrent Assets
 
299

 
(230
)
 
69

 
—

 
69

 
 
Total Mark-to-Market Derivative Assets
 
$
1,177

 
$
(939
)
 
$
238

 
$
—

 
$
238

 
 
Derivative Contracts
 
 
 
 
 
 
 
 
 
 
 
 
Current Liabilities
 
$
(732
)
 
$
702

 
$
(30
)
 
$
(10
)
 
$
(40
)
 
 
Noncurrent Liabilities
 
(227
)
 
224

 
(3
)
 
—

 
(3
)
 
 
Total Mark-to-Market Derivative (Liabilities)
 
$
(959
)
 
$
926

 
$
(33
)
 
$
(10
)
 
$
(43
)
 
 
Total Net Mark-to-Market Derivative Assets (Liabilities)
 
$
218

 
$
(13
)
 
$
205

 
$
(10
)
 
$
195

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of December 31, 2019
 
 
 
 
PSEG Power (A)
 
PSEG (A)
 
Consolidated
 
 
 
 
Not Designated
 
 
 
 
 
Cash Flow Hedges
 
 
 
 
Balance Sheet Location
 
Energy-
Related
Contracts
 
Netting
(B)
 
Total
PSEG Power
 
Interest
Rate
Swaps
 
Total
Derivatives
 
 
 
 
Millions
 
 
Derivative Contracts
 
 
 
 
 
 
 
 
 
 
 
 
Current Assets
 
$
636

 
$
(523
)
 
$
113

 
$
—

 
$
113

 
 
Noncurrent Assets
 
163

 
(139
)
 
24

 
—

 
24

 
 
Total Mark-to-Market Derivative Assets
 
$
799

 
$
(662
)
 
$
137

 
$
—

 
$
137

 
 
Derivative Contracts
 
 
 
 
 
 
 
 
 
 
 
 
Current Liabilities
 
$
(553
)
 
$
522

 
$
(31
)
 
$
(5
)
 
$
(36
)
 
 
Noncurrent Liabilities
 
(139
)
 
138

 
(1
)
 
—

 
(1
)
 
 
Total Mark-to-Market Derivative (Liabilities)
 
$
(692
)
 
$
660

 
$
(32
)
 
$
(5
)
 
$
(37
)
 
 
Total Net Mark-to-Market Derivative Assets (Liabilities)
 
$
107

 
$
(2
)
 
$
105

 
$
(5
)
 
$
100

 
 
 
 
 
 
 
 
 
 
 
 
 
 
(A)
Substantially all of PSEG 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 March 31, 2020 and December 31, 2019.
(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) posted that has been allocated to derivative positions, where the right of offset exists, has been offset on the Condensed Consolidated Balance Sheets. As of March 31, 2020 and December 31, 2019, PSEG Power had net cash collateral (receipts) payments to counterparties of $(11) million and $44 million, respectively. Of these net cash collateral (receipts) payments, $(13) million as of March 31, 2020 and $(2) million as of December 31, 2019 were netted against the corresponding net derivative contract positions. Of the $(13) million as of March 31, 2020, $(7) million was netted against current assets and $(6) million was netted against noncurrent assets. Of the $(2) million as of December 31, 2019, $(1) million was netted against current assets and $(1) million was netted against noncurrent assets.
Certain of PSEG Power’s derivative instruments contain provisions that require PSEG Power to post collateral. This collateral may be posted in the form of cash or credit support with thresholds contingent upon PSEG 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 PSEG Power were to be downgraded to a below investment grade rating by S&P or Moody’s, it would be required to provide additional collateral. A below investment grade credit rating for PSEG Power would represent a three level downgrade from its current S&P or Moody’s ratings. 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. PSEG 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 the 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 the NYMEX and ICE that are fully collateralized) was $37 million and $35 million as of March 31, 2020 and December 31, 2019, respectively. As of March 31, 2020 and December 31, 2019, PSEG Power had the contractual right of offset of $4 million and $2 million, respectively, related to derivative instruments that are assets with the same counterparty under master agreements and net of margin posted. If PSEG Power had been downgraded to a below investment grade rating, it would have had additional collateral obligations of $33 million as of March 31, 2020 and December 31, 2019 related to its derivatives, net of the contractual right of offset under master agreements and the application of collateral.
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 March 31, 2020 and 2019:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivatives in Cash Flow
Hedging Relationships
 
Amount of Pre-Tax
Gain (Loss)
Recognized in AOCI on Derivatives
 
Location of
Pre-Tax Gain (Loss) Reclassified from AOCI into Income
 
Amount of Pre-Tax
Gain (Loss)
Reclassified from AOCI into Income
 
 
 
Three Months Ended
 
 
 
Three Months Ended
 
 
 
March 31,
 
 
 
March 31,
 
 
 
2020
 
2019
 
 
 
2020
 
2019
 
 
 
 
Millions
 
 
 
Millions
 
 
PSEG
 
 
 
 
 
 
 
 
 
 
 
 
Interest Rate Swaps
 
$
(6
)
 
$
(5
)
 
Interest Expense
 
$
(2
)
 
$
—

 
 
Total PSEG
 
$
(6
)
 
$
(5
)
 
 
 
$
(2
)
 
$
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 

The effect of interest rate cash flow hedges is recorded in Interest Expense in PSEG’s Condensed Consolidated Statement of Operations. For the three months ended March 31, 2020, the amount of gain or loss on interest rate hedges reclassified from Accumulated Other Comprehensive Income (Loss) into income was $(1) million after-tax. The amount of gain or loss on interest rate hedges reclassified from Accumulated Other Comprehensive Income (Loss) into income for the three months ended March 31, 2019 was immaterial.
The following reconciles the Accumulated Other Comprehensive Income (Loss) for derivative activity included in the Accumulated Other Comprehensive Loss of PSEG on a pre-tax and after-tax basis.
 
 
 
 
 
 
 
 
Accumulated Other Comprehensive Income (Loss)
 
Pre-Tax
 
After-Tax
 
 
 
 
Millions
 
 
Balance as of December 31, 2018
 
$
(2
)
 
$
(1
)
 
 
Loss Recognized in AOCI
 
(23
)
 
(17
)
 
 
Less: Loss Reclassified into Income
 
4

 
3

 
 
Balance as of December 31, 2019
 
$
(21
)
 
$
(15
)
 
 
Loss Recognized in AOCI
 
(6
)
 
(4
)
 
 
Less: Loss Reclassified into Income
 
2

 
1

 
 
Balance as of March 31, 2020
 
$
(25
)
 
$
(18
)
 
 
 
 
 
 
 
 

The following shows the effect on the Condensed Consolidated Statements of Operations of derivative instruments not designated as hedging instruments or as NPNS for the three months ended March 31, 2020 and 2019, respectively. PSEG Power’s derivative contracts reflected in this table include contracts to hedge the purchase and sale of electricity and natural gas, and the purchase of fuel. The table does not include contracts that PSEG Power has designated as NPNS, such as its BGS contracts and certain other energy supply contracts that it has with other utilities and companies with retail load.
 
 
 
 
 
 
 
 
 
Derivatives Not Designated as Hedges
 
Location of Pre-Tax
Gain (Loss)
Recognized in Income
on Derivatives
Pre-Tax Gain (Loss) Recognized in Income on Derivatives
 
 
 
 
 
Three Months Ended
 
 
 
 
 
March 31,
 
 
 
 
 
2020
 
2019
 
 
 
 
 
Millions
 
 
PSEG and PSEG Power
 
 
 
 
 
 
 
Energy-Related Contracts
 
Operating Revenues
$
231

 
$
139

 
 
Energy-Related Contracts
 
Energy Costs
(68
)
 
(13
)
 
 
Total PSEG and PSEG Power
 
 
$
163

 
$
126

 
 
 
 
 
 
 
 
 

The following table summarizes the net notional volume purchases/(sales) of open derivative transactions by commodity as of March 31, 2020 and December 31, 2019.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Type
 
Notional
 
Total
 
PSEG
 
PSEG Power
 
PSE&G
 
 
 
 
 
 
Millions
 
 
As of March 31, 2020
 
 
 
 
 
 
 
 
 
 
 
 
Natural Gas
 
Dekatherm (Dth)
 
449

 
—

 
449

 
—

 
 
Electricity
 
MWh
 
(60
)
 
—

 
(60
)
 
—

 
 
Financial Transmission Rights (FTRs)
 
MWh
 
8

 
—

 
8

 
—

 
 
Interest Rate Swaps
 
U.S. Dollars
 
700

 
700

 
—

 
—

 
 
As of December 31, 2019
 
 
 
 
 
 
 
 
 
 
 
 
Natural Gas
 
Dth
 
341

 
—

 
341

 
—

 
 
Electricity
 
MWh
 
(62
)
 
—

 
(62
)
 
—

 
 
FTRs
 
MWh
 
13

 
—

 
13

 
—

 
 
Interest Rate Swaps
 
U.S. Dollars
 
700

 
700

 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 

Credit Risk
Credit risk relates to the risk of loss that PSEG Power would incur as a result of non-performance by counterparties pursuant to the terms of their contractual obligations. PSEG has established credit policies that it believes 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 PSEG Power’s and PSEG’s financial condition, results of operations or net cash flows.
The following table provides information on PSEG Power’s credit risk from wholesale counterparties, net of collateral, as of March 31, 2020. It further delineates that exposure by the credit rating of the counterparties, which is determined by the lowest rating from S&P, Moody’s or an internal scoring model. In addition, it provides guidance on the concentration of credit risk to individual counterparties and an indication of the quality of PSEG Power’s credit risk by credit rating of the counterparties.
As of March 31, 2020, 99% of the net credit exposure for PSEG Power’s wholesale 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, NPNS and non-derivatives).
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Rating
 
Current
Exposure
 
Securities Held as Collateral
 
Net
Exposure
 
Number of
Counterparties
>10%
 
Net Exposure of
Counterparties
>10%
 
 
 
 
 
Millions
 
 
 
Millions
 
 
 
Investment Grade
 
$
488

 
$
93

 
$
395

 
3

 
$
235

(A)
 
 
Non-Investment Grade
 
4

 
—

 
4

 
—

 
—

  
 
 
Total
 
$
492

 
$
93

 
$
399

 
3

 
$
235

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(A)
Represents net exposure of $137 million with PSE&G and $98 million with two non-affiliated counterparties.
As of March 31, 2020, collateral held from counterparties where PSEG Power had credit exposure included $6 million in cash collateral and $87 million in letters of credit.
As of March 31, 2020, PSEG Power had 141 active counterparties.
PSE&G’s supplier master agreements are approved by the BPU and govern the terms of its electric supply procurement contracts. These agreements define a supplier’s performance assurance requirements and allow a supplier to meet its credit requirements with a certain amount of unsecured credit. The amount of unsecured credit is determined based on the supplier’s credit ratings from the major credit rating agencies and the supplier’s tangible net worth. The credit position is based on the initial market price, which is the forward price of energy on the day the procurement transaction is executed, compared to the forward price curve for energy on the valuation day. To the extent that the forward price curve for energy exceeds the initial market price, the supplier is required to post a parental guaranty or other security instrument such as a letter of credit or cash, as collateral to the extent the credit exposure is greater than the supplier’s unsecured credit limit. As of March 31, 2020, primarily all of the posted collateral was in the form of parental guarantees. The unsecured credit used by the suppliers represents PSE&G’s net credit exposure. PSE&G’s BGS suppliers’ credit exposure is calculated each business day. As of March 31, 2020, PSE&G had no net credit exposure with suppliers, including PSEG Power.
PSE&G is permitted to recover its costs of procuring energy through the BPU-approved BGS tariffs. PSE&G’s counterparty credit risk is mitigated by its ability to recover realized energy costs through customer rates.
PSEG Power [Member]  
Derivative Instruments and Hedging Activities Disclosures [Line Items]  
Financial Risk Management Activities Financial Risk Management Activities
Derivative accounting guidance requires that a derivative instrument be recognized as either an asset or a liability at fair value, with changes in fair value of the derivative recognized in earnings each period. Other accounting treatments are available through special election and designation provided that the derivative instrument meets specific, restrictive criteria, both at the time of designation and on an ongoing basis. These alternative permissible treatments include normal purchases and normal sales (NPNS), cash flow hedge and fair value hedge accounting. PSEG, PSEG Power and PSE&G have applied the NPNS scope exception to certain derivative contracts for the forward sale of generation, power procurement agreements and fuel agreements. PSEG uses interest rate swaps and other derivatives, which are designated and qualifying as cash flow or fair value hedges. PSEG Power enters into additional contracts that are derivatives, but are not designated as either cash flow hedges or fair value hedges. These transactions are economic hedges and are recorded at fair market value with changes recognized in earnings.
Commodity Prices
Within PSEG and its affiliate companies, PSEG Power has the most exposure to commodity price risk. PSEG Power is exposed to commodity price risk primarily relating to changes in the market price of electricity, fossil fuels and other commodities. Fluctuations in market prices result from changes in supply and demand, fuel costs, market conditions, weather, state and federal regulatory policies, environmental policies, transmission availability and other factors. PSEG Power uses a variety of derivative and non-derivative instruments, such as financial options, futures, swaps, fuel purchases and forward purchases and
sales of electricity, to manage the exposure to fluctuations in commodity prices and optimize the value of PSEG Power’s expected generation. PSEG Power also uses derivatives to hedge a portion of its anticipated BGSS obligations with PSE&G. For additional information see Note 11. Commitments and Contingent Liabilities. Changes in the fair market value of these derivative contracts are recorded in earnings.
Interest Rates
PSEG, 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 and interest rate swaps.
Fair Value Hedges
PSEG enters into fair value hedges to convert fixed-rate debt into variable-rate debt. The changes in fair value of the interest rate swaps are fully offset by changes in the fair value of the underlying forecasted interest payments of the debt. There were no outstanding interest rate swaps as of March 31, 2020 or December 31, 2019.
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. As of March 31, 2020, PSEG had interest rate hedges outstanding totaling $700 million. These hedges convert PSEG’s $700 million variable-rate term loan due November 2020 into a fixed-rate loan.
The fair value of these hedges was $(10) million and $(5) million as of March 31, 2020 and December 31, 2019, respectively. The Accumulated Other Comprehensive Income (Loss) (after tax) related to outstanding and terminated interest rate derivatives designated as cash flow hedges was $(18) million and $(15) million as of March 31, 2020 and December 31, 2019, respectively. The after-tax unrealized losses on these hedges expected to be reclassified to earnings during the next 12 months are $(2) million.
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. 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 PSEG’s accounting policy, these positions are offset on the Condensed Consolidated Balance Sheets of PSEG Power and PSEG. For additional information see Note 14. Fair Value Measurements. The following tabular disclosure does not include the offsetting of trade receivables and payables.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of March 31, 2020
 
 
 
 
PSEG Power (A)
 
PSEG (A)
 
Consolidated
 
 
 
 
Not Designated
 
 
 
 
 
Cash Flow Hedges
 
 
 
 
Balance Sheet Location
 
Energy-
Related
Contracts
 
Netting
(B)
 
Total
PSEG Power
 
Interest
Rate
Swaps
 
Total
Derivatives
 
 
 
 
Millions
 
 
Derivative Contracts
 
 
 
 
 
 
 
 
 
 
 
 
Current Assets
 
$
878

 
$
(709
)
 
$
169

 
$
—

 
$
169

 
 
Noncurrent Assets
 
299

 
(230
)
 
69

 
—

 
69

 
 
Total Mark-to-Market Derivative Assets
 
$
1,177

 
$
(939
)
 
$
238

 
$
—

 
$
238

 
 
Derivative Contracts
 
 
 
 
 
 
 
 
 
 
 
 
Current Liabilities
 
$
(732
)
 
$
702

 
$
(30
)
 
$
(10
)
 
$
(40
)
 
 
Noncurrent Liabilities
 
(227
)
 
224

 
(3
)
 
—

 
(3
)
 
 
Total Mark-to-Market Derivative (Liabilities)
 
$
(959
)
 
$
926

 
$
(33
)
 
$
(10
)
 
$
(43
)
 
 
Total Net Mark-to-Market Derivative Assets (Liabilities)
 
$
218

 
$
(13
)
 
$
205

 
$
(10
)
 
$
195

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of December 31, 2019
 
 
 
 
PSEG Power (A)
 
PSEG (A)
 
Consolidated
 
 
 
 
Not Designated
 
 
 
 
 
Cash Flow Hedges
 
 
 
 
Balance Sheet Location
 
Energy-
Related
Contracts
 
Netting
(B)
 
Total
PSEG Power
 
Interest
Rate
Swaps
 
Total
Derivatives
 
 
 
 
Millions
 
 
Derivative Contracts
 
 
 
 
 
 
 
 
 
 
 
 
Current Assets
 
$
636

 
$
(523
)
 
$
113

 
$
—

 
$
113

 
 
Noncurrent Assets
 
163

 
(139
)
 
24

 
—

 
24

 
 
Total Mark-to-Market Derivative Assets
 
$
799

 
$
(662
)
 
$
137

 
$
—

 
$
137

 
 
Derivative Contracts
 
 
 
 
 
 
 
 
 
 
 
 
Current Liabilities
 
$
(553
)
 
$
522

 
$
(31
)
 
$
(5
)
 
$
(36
)
 
 
Noncurrent Liabilities
 
(139
)
 
138

 
(1
)
 
—

 
(1
)
 
 
Total Mark-to-Market Derivative (Liabilities)
 
$
(692
)
 
$
660

 
$
(32
)
 
$
(5
)
 
$
(37
)
 
 
Total Net Mark-to-Market Derivative Assets (Liabilities)
 
$
107

 
$
(2
)
 
$
105

 
$
(5
)
 
$
100

 
 
 
 
 
 
 
 
 
 
 
 
 
 
(A)
Substantially all of PSEG 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 March 31, 2020 and December 31, 2019.
(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) posted that has been allocated to derivative positions, where the right of offset exists, has been offset on the Condensed Consolidated Balance Sheets. As of March 31, 2020 and December 31, 2019, PSEG Power had net cash collateral (receipts) payments to counterparties of $(11) million and $44 million, respectively. Of these net cash collateral (receipts) payments, $(13) million as of March 31, 2020 and $(2) million as of December 31, 2019 were netted against the corresponding net derivative contract positions. Of the $(13) million as of March 31, 2020, $(7) million was netted against current assets and $(6) million was netted against noncurrent assets. Of the $(2) million as of December 31, 2019, $(1) million was netted against current assets and $(1) million was netted against noncurrent assets.
Certain of PSEG Power’s derivative instruments contain provisions that require PSEG Power to post collateral. This collateral may be posted in the form of cash or credit support with thresholds contingent upon PSEG 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 PSEG Power were to be downgraded to a below investment grade rating by S&P or Moody’s, it would be required to provide additional collateral. A below investment grade credit rating for PSEG Power would represent a three level downgrade from its current S&P or Moody’s ratings. 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. PSEG 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 the 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 the NYMEX and ICE that are fully collateralized) was $37 million and $35 million as of March 31, 2020 and December 31, 2019, respectively. As of March 31, 2020 and December 31, 2019, PSEG Power had the contractual right of offset of $4 million and $2 million, respectively, related to derivative instruments that are assets with the same counterparty under master agreements and net of margin posted. If PSEG Power had been downgraded to a below investment grade rating, it would have had additional collateral obligations of $33 million as of March 31, 2020 and December 31, 2019 related to its derivatives, net of the contractual right of offset under master agreements and the application of collateral.
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 March 31, 2020 and 2019:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivatives in Cash Flow
Hedging Relationships
 
Amount of Pre-Tax
Gain (Loss)
Recognized in AOCI on Derivatives
 
Location of
Pre-Tax Gain (Loss) Reclassified from AOCI into Income
 
Amount of Pre-Tax
Gain (Loss)
Reclassified from AOCI into Income
 
 
 
Three Months Ended
 
 
 
Three Months Ended
 
 
 
March 31,
 
 
 
March 31,
 
 
 
2020
 
2019
 
 
 
2020
 
2019
 
 
 
 
Millions
 
 
 
Millions
 
 
PSEG
 
 
 
 
 
 
 
 
 
 
 
 
Interest Rate Swaps
 
$
(6
)
 
$
(5
)
 
Interest Expense
 
$
(2
)
 
$
—

 
 
Total PSEG
 
$
(6
)
 
$
(5
)
 
 
 
$
(2
)
 
$
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 

The effect of interest rate cash flow hedges is recorded in Interest Expense in PSEG’s Condensed Consolidated Statement of Operations. For the three months ended March 31, 2020, the amount of gain or loss on interest rate hedges reclassified from Accumulated Other Comprehensive Income (Loss) into income was $(1) million after-tax. The amount of gain or loss on interest rate hedges reclassified from Accumulated Other Comprehensive Income (Loss) into income for the three months ended March 31, 2019 was immaterial.
The following reconciles the Accumulated Other Comprehensive Income (Loss) for derivative activity included in the Accumulated Other Comprehensive Loss of PSEG on a pre-tax and after-tax basis.
 
 
 
 
 
 
 
 
Accumulated Other Comprehensive Income (Loss)
 
Pre-Tax
 
After-Tax
 
 
 
 
Millions
 
 
Balance as of December 31, 2018
 
$
(2
)
 
$
(1
)
 
 
Loss Recognized in AOCI
 
(23
)
 
(17
)
 
 
Less: Loss Reclassified into Income
 
4

 
3

 
 
Balance as of December 31, 2019
 
$
(21
)
 
$
(15
)
 
 
Loss Recognized in AOCI
 
(6
)
 
(4
)
 
 
Less: Loss Reclassified into Income
 
2

 
1

 
 
Balance as of March 31, 2020
 
$
(25
)
 
$
(18
)
 
 
 
 
 
 
 
 

The following shows the effect on the Condensed Consolidated Statements of Operations of derivative instruments not designated as hedging instruments or as NPNS for the three months ended March 31, 2020 and 2019, respectively. PSEG Power’s derivative contracts reflected in this table include contracts to hedge the purchase and sale of electricity and natural gas, and the purchase of fuel. The table does not include contracts that PSEG Power has designated as NPNS, such as its BGS contracts and certain other energy supply contracts that it has with other utilities and companies with retail load.
 
 
 
 
 
 
 
 
 
Derivatives Not Designated as Hedges
 
Location of Pre-Tax
Gain (Loss)
Recognized in Income
on Derivatives
Pre-Tax Gain (Loss) Recognized in Income on Derivatives
 
 
 
 
 
Three Months Ended
 
 
 
 
 
March 31,
 
 
 
 
 
2020
 
2019
 
 
 
 
 
Millions
 
 
PSEG and PSEG Power
 
 
 
 
 
 
 
Energy-Related Contracts
 
Operating Revenues
$
231

 
$
139

 
 
Energy-Related Contracts
 
Energy Costs
(68
)
 
(13
)
 
 
Total PSEG and PSEG Power
 
 
$
163

 
$
126

 
 
 
 
 
 
 
 
 

The following table summarizes the net notional volume purchases/(sales) of open derivative transactions by commodity as of March 31, 2020 and December 31, 2019.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Type
 
Notional
 
Total
 
PSEG
 
PSEG Power
 
PSE&G
 
 
 
 
 
 
Millions
 
 
As of March 31, 2020
 
 
 
 
 
 
 
 
 
 
 
 
Natural Gas
 
Dekatherm (Dth)
 
449

 
—

 
449

 
—

 
 
Electricity
 
MWh
 
(60
)
 
—

 
(60
)
 
—

 
 
Financial Transmission Rights (FTRs)
 
MWh
 
8

 
—

 
8

 
—

 
 
Interest Rate Swaps
 
U.S. Dollars
 
700

 
700

 
—

 
—

 
 
As of December 31, 2019
 
 
 
 
 
 
 
 
 
 
 
 
Natural Gas
 
Dth
 
341

 
—

 
341

 
—

 
 
Electricity
 
MWh
 
(62
)
 
—

 
(62
)
 
—

 
 
FTRs
 
MWh
 
13

 
—

 
13

 
—

 
 
Interest Rate Swaps
 
U.S. Dollars
 
700

 
700

 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 

Credit Risk
Credit risk relates to the risk of loss that PSEG Power would incur as a result of non-performance by counterparties pursuant to the terms of their contractual obligations. PSEG has established credit policies that it believes 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 PSEG Power’s and PSEG’s financial condition, results of operations or net cash flows.
The following table provides information on PSEG Power’s credit risk from wholesale counterparties, net of collateral, as of March 31, 2020. It further delineates that exposure by the credit rating of the counterparties, which is determined by the lowest rating from S&P, Moody’s or an internal scoring model. In addition, it provides guidance on the concentration of credit risk to individual counterparties and an indication of the quality of PSEG Power’s credit risk by credit rating of the counterparties.
As of March 31, 2020, 99% of the net credit exposure for PSEG Power’s wholesale 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, NPNS and non-derivatives).
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Rating
 
Current
Exposure
 
Securities Held as Collateral
 
Net
Exposure
 
Number of
Counterparties
>10%
 
Net Exposure of
Counterparties
>10%
 
 
 
 
 
Millions
 
 
 
Millions
 
 
 
Investment Grade
 
$
488

 
$
93

 
$
395

 
3

 
$
235

(A)
 
 
Non-Investment Grade
 
4

 
—

 
4

 
—

 
—

  
 
 
Total
 
$
492

 
$
93

 
$
399

 
3

 
$
235

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(A)
Represents net exposure of $137 million with PSE&G and $98 million with two non-affiliated counterparties.
As of March 31, 2020, collateral held from counterparties where PSEG Power had credit exposure included $6 million in cash collateral and $87 million in letters of credit.
As of March 31, 2020, PSEG Power had 141 active counterparties.
PSE&G’s supplier master agreements are approved by the BPU and govern the terms of its electric supply procurement contracts. These agreements define a supplier’s performance assurance requirements and allow a supplier to meet its credit requirements with a certain amount of unsecured credit. The amount of unsecured credit is determined based on the supplier’s credit ratings from the major credit rating agencies and the supplier’s tangible net worth. The credit position is based on the initial market price, which is the forward price of energy on the day the procurement transaction is executed, compared to the forward price curve for energy on the valuation day. To the extent that the forward price curve for energy exceeds the initial market price, the supplier is required to post a parental guaranty or other security instrument such as a letter of credit or cash, as collateral to the extent the credit exposure is greater than the supplier’s unsecured credit limit. As of March 31, 2020, primarily all of the posted collateral was in the form of parental guarantees. The unsecured credit used by the suppliers represents PSE&G’s net credit exposure. PSE&G’s BGS suppliers’ credit exposure is calculated each business day. As of March 31, 2020, PSE&G had no net credit exposure with suppliers, including PSEG Power.
PSE&G is permitted to recover its costs of procuring energy through the BPU-approved BGS tariffs. PSE&G’s counterparty credit risk is mitigated by its ability to recover realized energy costs through customer rates.
v3.20.1
Fair Value Measurements
 3 Months Ended
Mar. 31, 2020
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
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, PSE&G and PSEG Power have the ability to access. These consist primarily of listed equity securities and money market mutual funds, as well as natural gas futures contracts executed on NYMEX.
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. These consist primarily of certain electric load contracts and gas contracts.
Certain derivative transactions may transfer from Level 2 to Level 3 if inputs become unobservable and internal modeling techniques are employed to determine fair value. Conversely, measurements may transfer from Level 3 to Level 2 if the inputs become observable.
The following tables present information about PSEG’s, PSE&G’s and PSEG Power’s respective assets and (liabilities) measured at fair value on a recurring basis as of March 31, 2020 and December 31, 2019, 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 PSE&G and PSEG Power.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Recurring Fair Value Measurements as of March 31, 2020
 
 
Description
 
Total
 

Netting (E)
 
Quoted Market Prices for Identical Assets
(Level 1)
 
Significant Other Observable Inputs (Level 2)
 
Significant Unobservable Inputs (Level 3)
 
 
 
 
Millions
 
 
PSEG
 
 
 
 
 
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
Cash Equivalents (A)
 
$
250

 
$
—

 
$
250

 
$
—

 
$
—

 
 
Derivative Contracts:
 
 
 
 
 
 
 
 
 
 
 
 
Energy-Related Contracts (B)
 
$
238

 
$
(939
)
 
$
24

 
$
1,132

 
$
21

 
 
NDT Fund (C)
 
 
 
 
 
 
 
 
 
 
 
 
Equity Securities
 
$
936

 
$
—

 
$
936

 
$
—

 
$
—

 
 
Debt Securities—U.S. Treasury
 
$
206

 
$
—

 
$
—

 
$
206

 
$
—

 
 
Debt Securities—Govt Other
 
$
358

 
$
—

 
$
—

 
$
358

 
$
—

 
 
Debt Securities—Corporate
 
$
527

 
$
—

 
$
—

 
$
527

 
$
—

 
 
Rabbi Trust (C)
 
 
 
 
 
 
 
 
 
 
 
 
Equity Securities
 
$
22

 
$
—

 
$
22

 
$
—

 
$
—

 
 
Debt Securities—U.S. Treasury
 
$
62

 
$
—

 
$
—

 
$
62

 
$
—

 
 
Debt Securities—Govt Other
 
$
48

 
$
—

 
$
—

 
$
48

 
$
—

 
 
Debt Securities—Corporate
 
$
112

 
$
—

 
$
—

 
$
112

 
$
—

 
 
Liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
Derivative Contracts:
 
 
 
 
 
 
 
 
 
 
 
 
Energy-Related Contracts (B)
 
$
(33
)
 
$
926

 
$
(73
)
 
$
(884
)
 
$
(2
)
 
 
Interest Rate Swaps (D)
 
$
(10
)
 
$
—

 
$
—

 
$
(10
)
 
$
—

 
 
PSE&G
 
 
 
 
 
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
Rabbi Trust (C)
 
 
 
 
 
 
 
 
 
 
 
 
Equity Securities
 
$
4

 
$
—

 
$
4

 
$
—

 
$
—

 
 
Debt Securities—U.S. Treasury
 
$
12

 
$
—

 
$
—

 
$
12

 
$
—

 
 
Debt Securities—Govt Other
 
$
9

 
$
—

 
$
—

 
$
9

 
$
—

 
 
Debt Securities—Corporate
 
$
22

 
$
—

 
$
—

 
$
22

 
$
—

 
 
PSEG Power
 

 
 
 
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
Derivative Contracts:
 
 
 
 
 
 
 
 
 
 
 
 
Energy-Related Contracts (B)
 
$
238

 
$
(939
)
 
$
24

 
$
1,132

 
$
21

 
 
NDT Fund (C)
 
 
 
 
 
 
 
 
 
 
 
 
Equity Securities
 
$
936

 
$
—

 
$
936

 
$
—

 
$
—

 
 
Debt Securities—U.S. Treasury
 
$
206

 
$
—

 
$
—

 
$
206

 
$
—

 
 
Debt Securities—Govt Other
 
$
358

 
$
—

 
$
—

 
$
358

 
$
—

 
 
Debt Securities—Corporate
 
$
527

 
$
—

 
$
—

 
$
527

 
$
—

 
 
Rabbi Trust (C)
 
 
 
 
 
 
 
 
 
 
 
 
Equity Securities
 
$
6

 
$
—

 
$
6

 
$
—

 
$
—

 
 
Debt Securities—U.S. Treasury
 
$
16

 
$
—

 
$
—

 
$
16

 
$
—

 
 
Debt Securities—Govt Other
 
$
12

 
$
—

 
$
—

 
$
12

 
$
—

 
 
Debt Securities—Corporate
 
$
27

 
$
—

 
$
—

 
$
27

 
$
—

 
 
Liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
Derivative Contracts:
 
 
 
 
 
 
 
 
 
 
 
 
Energy-Related Contracts (B)
 
$
(33
)
 
$
926

 
$
(73
)
 
$
(884
)
 
$
(2
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Recurring Fair Value Measurements as of December 31, 2019
 
 
Description
 
Total
 
Netting  (E)
 
Quoted Market Prices for Identical Assets
(Level 1)
 
Significant Other Observable Inputs (Level 2)
 
Significant Unobservable Inputs (Level 3)
 
 
 
 
Millions
 
 
PSEG
 
 
 
 
 
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
Cash Equivalents (A)
 
$
50

 
$
—

 
$
50

 
$
—

 
$
—

 
 
Derivative Contracts:
 
 
 
 
 
 
 
 
 
 
 
 
Energy-Related Contracts (B)
 
$
137

 
$
(662
)
 
$
19

 
$
770

 
$
10

 
 
NDT Fund (C)
 
 
 
 
 
 
 
 
 
 
 
 
Equity Securities
 
$
1,151

 
$
—

 
$
1,150

 
$
1

 
$
—

 
 
Debt Securities—U.S. Treasury
 
$
225

 
$
—

 
$
—

 
$
225

 
$
—

 
 
Debt Securities—Govt Other
 
$
352

 
$
—

 
$
—

 
$
352

 
$
—

 
 
Debt Securities—Corporate
 
$
486

 
$
—

 
$
—

 
$
486

 
$
—

 
 
Rabbi Trust (C)
 
 
 
 
 
 
 
 
 
 
 
 
Equity Securities
 
$
28

 
$
—

 
$
28

 
$
—

 
$
—

 
 
Debt Securities—U.S. Treasury
 
$
57

 
$
—

 
$
—

 
$
57

 
$
—

 
 
Debt Securities—Govt Other
 
$
47

 
$
—

 
$
—

 
$
47

 
$
—

 
 
Debt Securities—Corporate
 
$
114

 
$
—

 
$
—

 
$
114

 
$
—

 
 
Liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
Derivative Contracts:
 
 
 
 
 
 
 
 
 
 
 
 
Energy-Related Contracts (B)
 
$
(32
)
 
$
660

 
$
(43
)
 
$
(646
)
 
$
(3
)
 
 
   Interest Rate Swaps (D)
 
$
(5
)
 
$
—

 
$
—

 
$
(5
)
 
$
—

 
 
PSE&G
 
 
 
 
 
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
Rabbi Trust (C)
 
 
 
 
 
 
 
 
 
 
 
 
Equity Securities
 
$
5

 
$
—

 
$
5

 
$
—

 
$
—

 
 
Debt Securities—U.S. Treasury
 
$
11

 
$
—

 
$
—

 
$
11

 
$
—

 
 
Debt Securities—Govt Other
 
$
9

 
$
—

 
$
—

 
$
9

 
$
—

 
 
Debt Securities—Corporate
 
$
23

 
$
—

 
$
—

 
$
23

 
$
—

 
 
PSEG Power
 
 
 
 
 
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
Derivative Contracts:
 
 
 
 
 
 
 
 
 
 
 
 
Energy-Related Contracts (B)
 
$
137

 
$
(662
)
 
$
19

 
$
770

 
$
10

 
 
NDT Fund (C)
 
 
 
 
 
 
 
 
 
 
 
 
Equity Securities
 
$
1,151

 
$
—

 
$
1,150

 
$
1

 
$
—

 
 
Debt Securities—U.S. Treasury
 
$
225

 
$
—

 
$
—

 
$
225

 
$
—

 
 
Debt Securities—Govt Other
 
$
352

 
$
—

 
$
—

 
$
352

 
$
—

 
 
Debt Securities—Corporate
 
$
486

 
$
—

 
$
—

 
$
486

 
$
—

 
 
Rabbi Trust (C)
 
 
 
 
 
 
 
 
 
 
 
 
Equity Securities
 
$
8

 
$
—

 
$
8

 
$
—

 
$
—

 
 
Debt Securities—U.S. Treasury
 
$
14

 
$
—

 
$
—

 
$
14

 
$
—

 
 
Debt Securities—Govt Other
 
$
12

 
$
—

 
$
—

 
$
12

 
$
—

 
 
Debt Securities—Corporate
 
$
28

 
$
—

 
$
—

 
$
28

 
$
—

 
 
Liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
Derivative Contracts:
 
 
 
 
 
 
 
 
 
 
 
 
Energy-Related Contracts (B)
 
$
(32
)
 
$
660

 
$
(43
)
 
$
(646
)
 
$
(3
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 

(A)
Represents money market mutual funds.
(B)
Level 1—These contracts represent natural gas futures contracts executed on NYMEX, and are being valued solely on settled pricing inputs which come directly from the exchange.
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 settled prices from similar assets and liabilities from an exchange, such as NYMEX, ICE and Nodal Exchange, 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—Unobservable inputs are used for the valuation of certain contracts. See “Additional Information Regarding Level 3 Measurements” below for more information on the utilization of unobservable inputs.
(C)
As of December 31, 2019, the fair value measurement table excludes foreign currency of $2 million in the NDT Fund. The NDT Fund maintains investments in various equity and fixed income securities. The Rabbi Trust maintains investments in a Russell 3000 index fund and various fixed income securities. These securities are generally valued with prices that are either exchange provided (equity securities) or market transactions for comparable securities and/or broker quotes (fixed income securities).
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. Certain other equity securities in the NDT and Rabbi Trust Funds consist primarily of investments in money market funds which seek a high level of current income as is consistent with the preservation of capital and the maintenance of liquidity. To pursue its goals, the funds normally invest in diversified portfolios of high quality, short-term, dollar-denominated debt securities and government securities. The funds’ net asset value is priced and published daily. The Rabbi Trust’s Russell 3000 index fund is valued based on quoted prices in an active market and can be redeemed daily without restriction.
Level 2—NDT and Rabbi Trust fixed income securities include investment grade corporate bonds, collateralized mortgage obligations, asset-backed securities and certain government and U.S. Treasury obligations or Federal Agency asset-backed securities and municipal bonds 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. The preferred stocks are not actively traded on a daily basis and therefore, are also priced using an evaluated pricing methodology. Certain short-term investments are valued using observable market prices or market parameters such as time-to-maturity, coupon rate, quality rating and current yield.
(D)
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.
(E)
Represents the netting of fair value balances with the same counterparty (where the right of offset exists) and the application of collateral. See Note 13. Financial Risk Management Activities for additional detail.
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 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.
The fair value of PSEG 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. The fair value of PSEG Power’s gas physical contracts at certain illiquid delivery locations are measured using average historical basis and, accordingly, are categorized as Level 3. While these physical gas contracts have an unobservable component in their respective forward price curves, the fluctuations in fair value have been driven primarily by changes in the observable inputs. The following tables provide details surrounding significant Level 3 valuations as of March 31, 2020 and December 31, 2019.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Quantitative Information About Level 3 Fair Value Measurements
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Significant
 
 
 
 
 
 
 
 
Level 3
 
Fair Value as of
 
Valuation
 
Unobservable
 
 
 
Arithmetic
 
 
Commodity
 
Position
 
March 31, 2020
 
Technique(s)
 
 Input
 
Range
 
Average
 
 
 
 
 
 
Assets
 
(Liabilities)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Millions
 
 
 
 
 
 
 
 
 
 
PSEG Power
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Electricity
 
Electric Load Contracts
 
$
21

 
$
—

 
Discounted Cash flow
 
Load Shaping Cost
 
0% to 10%
 
3%
 
 
Gas
 
Gas Physical Contracts
 
—

 
(2
)
 
Discounted Cash flow
 
Average Historical Basis
 
-70% to 0%
 
-22%
 
 
Total PSEG Power
 
$
21

 
$
(2
)
 
 
 
 
 
 
 
 
 
 
Total PSEG
 
 
 
$
21

 
$
(2
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Quantitative Information About Level 3 Fair Value Measurements
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Significant
 
 
 
 
 
 
 
 
Fair Value as of
 
Valuation
 
Unobservable
 
 
 
 
Commodity
 
Level 3 Position
 
December 31, 2019
 
Technique(s)
 
 Input
 
Range
 
 
 
 
 
 
Assets
 
(Liabilities)
 
 
 
 
 
 
 
 
 
 
 
 
Millions
 
 
 
 
 
 
 
 
PSEG Power
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Electricity
 
Electric Load Contracts
 
$
10

 
$
—

 
Discounted Cash flow
 
Historic Load Variability
 
0% to 10%
 
 
Gas
 
Gas Physical Contracts
 
—

 
(3
)
 
Discounted Cash flow
 
Average Historical Basis
 
-50% to 0%
 
 
Total PSEG Power
 
 
 
$
10

 
$
(3
)
 
 
 
 
 
 
 
 
Total PSEG
 
 
 
$
10

 
$
(3
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

As of March 31, 2020, 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 PSEG Power is a seller, an increase in the load variability would decrease the fair value. For gas-related contracts in cases where PSEG Power is a buyer, an increase in the average historical basis would increase the fair value.
A reconciliation of the beginning and ending balances of Level 3 derivative contracts and securities for the three months ended March 31, 2020 and March 31, 2019, respectively, follows:
Changes in Level 3 Assets and (Liabilities) Measured at Fair Value on a Recurring Basis
for the Three Months Ended March 31, 2020
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended March 31, 2020
 
 
Description
 
Balance as of December 31, 2019
 
Total Gains or (Losses)
Realized/Unrealized Included in Income (A)
 
Purchases
(Sales)
 
Issuances/
Settlements
(B)
 
Transfers
In/Out (C)
 
Balance as of March 31, 2020
 
 
 
 
Millions
 
 
PSEG and PSEG Power
 
 
 
 
 
 
 
 
 
 
 
 
Net Derivative Assets (Liabilities)
 
$
7

 
$
13

 
$
—

 
$
(1
)
 
$
—

 
$
19

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Changes in Level 3 Assets and (Liabilities) Measured at Fair Value on a Recurring Basis
for the Three Months Ended March 31, 2019
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended March 31, 2019
 
 
Description
 
Balance as of December 31, 2018
 
Total Gains or (Losses)
Realized/Unrealized Included in Income (A)
 
Purchases
(Sales)
 
Issuances/
Settlements
(B)
 
Transfers
In/Out (C)
 
Balance as of March 31, 2019
 
 
 
 
Millions
 
 
PSEG and PSEG Power
 
 
 
 
 
 
 
 
 
 
 
 
Net Derivative Assets (Liabilities)
 
$
1

 
$
1

 
$
—

 
$
(4
)
 
$
—

 
$
(2
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(A)
Unrealized gains (losses) in the following table represent the change in derivative assets and liabilities still held as of March 31, 2020 and 2019.
.
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended March 31,
 
 
 
2020
 
2019
 
 
 
Total Gains (Losses)
 
Unrealized Gains (Losses)
 
Total Gains (Losses)
 
Unrealized Gains (Losses)
 
 
 
Millions
 
 
PSEG and PSEG Power
 
 
 
 
 
 
 
 
 
Operating Revenues
$
18

 
$
11

 
$
6

 
$
—

 
 
Energy Costs
(5
)
 
1

 
(5
)
 
(3
)
 
 
Total
$
13

 
$
12

 
$
1

 
$
(3
)
 
 
 
 
 
 
 
 
 
 
 

(B)
Includes settlements of $(1) million for the three months ended March 31, 2020 and $(4) million for the three months ended March 31, 2019.
(C)
There were no transfers into or out of Level 3 during the three months ended March 31, 2020 and 2019.
As of March 31, 2020, PSEG carried $2.7 billion of net assets that are measured at fair value on a recurring basis, of which $19 million of net assets was measured using unobservable inputs and classified as Level 3 within the fair value hierarchy.
As of March 31, 2019, PSEG carried $2.3 billion of net assets that are measured at fair value on a recurring basis, of which $2 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 March 31, 2020 and December 31, 2019.
 
 
 
 
 
 
 
 
 
 
 
 
As of
 
As of
 
 
 
March 31, 2020
 
December 31, 2019
 
 
 
Carrying
Amount
 
Fair
Value
 
Carrying
Amount
 
Fair
Value
 
 
 
Millions
 
 
Long-Term Debt:
 
 
 
 
 
 
 
 
 
PSEG (A) (B)
$
2,441

 
$
2,423

 
$
2,441

 
$
2,479

 
 
PSE&G (B)
10,423

 
11,569

 
9,827

 
11,107

 
 
PSEG Power (B)
2,841

 
2,766

 
2,840

 
3,137

 
 
Total Long-Term Debt
$
15,705

 
$
16,758

 
$
15,108

 
$
16,723

 
 
 
 
 
 
 
 
 
 
 
(A)
Includes floating-rate term loans of $700 million at PSEG as of March 31, 2020 and December 31, 2019. The fair values of the term loan debt (Level 2 measurement) approximate the carrying value because the interest payments are based on LIBOR rates that are reset monthly and the debt is redeemable at face value by PSEG at any time.
(B)
Given that these bonds do not trade actively, the fair value amounts of taxable debt securities (primarily Level 2 measurements) are generally determined by a valuation model that is based on a conventional discounted cash flow methodology. The fair value amounts above do not represent the price at which the outstanding debt may be called for redemption by each issuer under their respective debt agreements.
Public Service Electric and Gas Company [Member]  
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
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, PSE&G and PSEG Power have the ability to access. These consist primarily of listed equity securities and money market mutual funds, as well as natural gas futures contracts executed on NYMEX.
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. These consist primarily of certain electric load contracts and gas contracts.
Certain derivative transactions may transfer from Level 2 to Level 3 if inputs become unobservable and internal modeling techniques are employed to determine fair value. Conversely, measurements may transfer from Level 3 to Level 2 if the inputs become observable.
The following tables present information about PSEG’s, PSE&G’s and PSEG Power’s respective assets and (liabilities) measured at fair value on a recurring basis as of March 31, 2020 and December 31, 2019, 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 PSE&G and PSEG Power.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Recurring Fair Value Measurements as of March 31, 2020
 
 
Description
 
Total
 

Netting (E)
 
Quoted Market Prices for Identical Assets
(Level 1)
 
Significant Other Observable Inputs (Level 2)
 
Significant Unobservable Inputs (Level 3)
 
 
 
 
Millions
 
 
PSEG
 
 
 
 
 
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
Cash Equivalents (A)
 
$
250

 
$
—

 
$
250

 
$
—

 
$
—

 
 
Derivative Contracts:
 
 
 
 
 
 
 
 
 
 
 
 
Energy-Related Contracts (B)
 
$
238

 
$
(939
)
 
$
24

 
$
1,132

 
$
21

 
 
NDT Fund (C)
 
 
 
 
 
 
 
 
 
 
 
 
Equity Securities
 
$
936

 
$
—

 
$
936

 
$
—

 
$
—

 
 
Debt Securities—U.S. Treasury
 
$
206

 
$
—

 
$
—

 
$
206

 
$
—

 
 
Debt Securities—Govt Other
 
$
358

 
$
—

 
$
—

 
$
358

 
$
—

 
 
Debt Securities—Corporate
 
$
527

 
$
—

 
$
—

 
$
527

 
$
—

 
 
Rabbi Trust (C)
 
 
 
 
 
 
 
 
 
 
 
 
Equity Securities
 
$
22

 
$
—

 
$
22

 
$
—

 
$
—

 
 
Debt Securities—U.S. Treasury
 
$
62

 
$
—

 
$
—

 
$
62

 
$
—

 
 
Debt Securities—Govt Other
 
$
48

 
$
—

 
$
—

 
$
48

 
$
—

 
 
Debt Securities—Corporate
 
$
112

 
$
—

 
$
—

 
$
112

 
$
—

 
 
Liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
Derivative Contracts:
 
 
 
 
 
 
 
 
 
 
 
 
Energy-Related Contracts (B)
 
$
(33
)
 
$
926

 
$
(73
)
 
$
(884
)
 
$
(2
)
 
 
Interest Rate Swaps (D)
 
$
(10
)
 
$
—

 
$
—

 
$
(10
)
 
$
—

 
 
PSE&G
 
 
 
 
 
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
Rabbi Trust (C)
 
 
 
 
 
 
 
 
 
 
 
 
Equity Securities
 
$
4

 
$
—

 
$
4

 
$
—

 
$
—

 
 
Debt Securities—U.S. Treasury
 
$
12

 
$
—

 
$
—

 
$
12

 
$
—

 
 
Debt Securities—Govt Other
 
$
9

 
$
—

 
$
—

 
$
9

 
$
—

 
 
Debt Securities—Corporate
 
$
22

 
$
—

 
$
—

 
$
22

 
$
—

 
 
PSEG Power
 

 
 
 
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
Derivative Contracts:
 
 
 
 
 
 
 
 
 
 
 
 
Energy-Related Contracts (B)
 
$
238

 
$
(939
)
 
$
24

 
$
1,132

 
$
21

 
 
NDT Fund (C)
 
 
 
 
 
 
 
 
 
 
 
 
Equity Securities
 
$
936

 
$
—

 
$
936

 
$
—

 
$
—

 
 
Debt Securities—U.S. Treasury
 
$
206

 
$
—

 
$
—

 
$
206

 
$
—

 
 
Debt Securities—Govt Other
 
$
358

 
$
—

 
$
—

 
$
358

 
$
—

 
 
Debt Securities—Corporate
 
$
527

 
$
—

 
$
—

 
$
527

 
$
—

 
 
Rabbi Trust (C)
 
 
 
 
 
 
 
 
 
 
 
 
Equity Securities
 
$
6

 
$
—

 
$
6

 
$
—

 
$
—

 
 
Debt Securities—U.S. Treasury
 
$
16

 
$
—

 
$
—

 
$
16

 
$
—

 
 
Debt Securities—Govt Other
 
$
12

 
$
—

 
$
—

 
$
12

 
$
—

 
 
Debt Securities—Corporate
 
$
27

 
$
—

 
$
—

 
$
27

 
$
—

 
 
Liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
Derivative Contracts:
 
 
 
 
 
 
 
 
 
 
 
 
Energy-Related Contracts (B)
 
$
(33
)
 
$
926

 
$
(73
)
 
$
(884
)
 
$
(2
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Recurring Fair Value Measurements as of December 31, 2019
 
 
Description
 
Total
 
Netting  (E)
 
Quoted Market Prices for Identical Assets
(Level 1)
 
Significant Other Observable Inputs (Level 2)
 
Significant Unobservable Inputs (Level 3)
 
 
 
 
Millions
 
 
PSEG
 
 
 
 
 
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
Cash Equivalents (A)
 
$
50

 
$
—

 
$
50

 
$
—

 
$
—

 
 
Derivative Contracts:
 
 
 
 
 
 
 
 
 
 
 
 
Energy-Related Contracts (B)
 
$
137

 
$
(662
)
 
$
19

 
$
770

 
$
10

 
 
NDT Fund (C)
 
 
 
 
 
 
 
 
 
 
 
 
Equity Securities
 
$
1,151

 
$
—

 
$
1,150

 
$
1

 
$
—

 
 
Debt Securities—U.S. Treasury
 
$
225

 
$
—

 
$
—

 
$
225

 
$
—

 
 
Debt Securities—Govt Other
 
$
352

 
$
—

 
$
—

 
$
352

 
$
—

 
 
Debt Securities—Corporate
 
$
486

 
$
—

 
$
—

 
$
486

 
$
—

 
 
Rabbi Trust (C)
 
 
 
 
 
 
 
 
 
 
 
 
Equity Securities
 
$
28

 
$
—

 
$
28

 
$
—

 
$
—

 
 
Debt Securities—U.S. Treasury
 
$
57

 
$
—

 
$
—

 
$
57

 
$
—

 
 
Debt Securities—Govt Other
 
$
47

 
$
—

 
$
—

 
$
47

 
$
—

 
 
Debt Securities—Corporate
 
$
114

 
$
—

 
$
—

 
$
114

 
$
—

 
 
Liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
Derivative Contracts:
 
 
 
 
 
 
 
 
 
 
 
 
Energy-Related Contracts (B)
 
$
(32
)
 
$
660

 
$
(43
)
 
$
(646
)
 
$
(3
)
 
 
   Interest Rate Swaps (D)
 
$
(5
)
 
$
—

 
$
—

 
$
(5
)
 
$
—

 
 
PSE&G
 
 
 
 
 
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
Rabbi Trust (C)
 
 
 
 
 
 
 
 
 
 
 
 
Equity Securities
 
$
5

 
$
—

 
$
5

 
$
—

 
$
—

 
 
Debt Securities—U.S. Treasury
 
$
11

 
$
—

 
$
—

 
$
11

 
$
—

 
 
Debt Securities—Govt Other
 
$
9

 
$
—

 
$
—

 
$
9

 
$
—

 
 
Debt Securities—Corporate
 
$
23

 
$
—

 
$
—

 
$
23

 
$
—

 
 
PSEG Power
 
 
 
 
 
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
Derivative Contracts:
 
 
 
 
 
 
 
 
 
 
 
 
Energy-Related Contracts (B)
 
$
137

 
$
(662
)
 
$
19

 
$
770

 
$
10

 
 
NDT Fund (C)
 
 
 
 
 
 
 
 
 
 
 
 
Equity Securities
 
$
1,151

 
$
—

 
$
1,150

 
$
1

 
$
—

 
 
Debt Securities—U.S. Treasury
 
$
225

 
$
—

 
$
—

 
$
225

 
$
—

 
 
Debt Securities—Govt Other
 
$
352

 
$
—

 
$
—

 
$
352

 
$
—

 
 
Debt Securities—Corporate
 
$
486

 
$
—

 
$
—

 
$
486

 
$
—

 
 
Rabbi Trust (C)
 
 
 
 
 
 
 
 
 
 
 
 
Equity Securities
 
$
8

 
$
—

 
$
8

 
$
—

 
$
—

 
 
Debt Securities—U.S. Treasury
 
$
14

 
$
—

 
$
—

 
$
14

 
$
—

 
 
Debt Securities—Govt Other
 
$
12

 
$
—

 
$
—

 
$
12

 
$
—

 
 
Debt Securities—Corporate
 
$
28

 
$
—

 
$
—

 
$
28

 
$
—

 
 
Liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
Derivative Contracts:
 
 
 
 
 
 
 
 
 
 
 
 
Energy-Related Contracts (B)
 
$
(32
)
 
$
660

 
$
(43
)
 
$
(646
)
 
$
(3
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 

(A)
Represents money market mutual funds.
(B)
Level 1—These contracts represent natural gas futures contracts executed on NYMEX, and are being valued solely on settled pricing inputs which come directly from the exchange.
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 settled prices from similar assets and liabilities from an exchange, such as NYMEX, ICE and Nodal Exchange, 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—Unobservable inputs are used for the valuation of certain contracts. See “Additional Information Regarding Level 3 Measurements” below for more information on the utilization of unobservable inputs.
(C)
As of December 31, 2019, the fair value measurement table excludes foreign currency of $2 million in the NDT Fund. The NDT Fund maintains investments in various equity and fixed income securities. The Rabbi Trust maintains investments in a Russell 3000 index fund and various fixed income securities. These securities are generally valued with prices that are either exchange provided (equity securities) or market transactions for comparable securities and/or broker quotes (fixed income securities).
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. Certain other equity securities in the NDT and Rabbi Trust Funds consist primarily of investments in money market funds which seek a high level of current income as is consistent with the preservation of capital and the maintenance of liquidity. To pursue its goals, the funds normally invest in diversified portfolios of high quality, short-term, dollar-denominated debt securities and government securities. The funds’ net asset value is priced and published daily. The Rabbi Trust’s Russell 3000 index fund is valued based on quoted prices in an active market and can be redeemed daily without restriction.
Level 2—NDT and Rabbi Trust fixed income securities include investment grade corporate bonds, collateralized mortgage obligations, asset-backed securities and certain government and U.S. Treasury obligations or Federal Agency asset-backed securities and municipal bonds 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. The preferred stocks are not actively traded on a daily basis and therefore, are also priced using an evaluated pricing methodology. Certain short-term investments are valued using observable market prices or market parameters such as time-to-maturity, coupon rate, quality rating and current yield.
(D)
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.
(E)
Represents the netting of fair value balances with the same counterparty (where the right of offset exists) and the application of collateral. See Note 13. Financial Risk Management Activities for additional detail.
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 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.
The fair value of PSEG 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. The fair value of PSEG Power’s gas physical contracts at certain illiquid delivery locations are measured using average historical basis and, accordingly, are categorized as Level 3. While these physical gas contracts have an unobservable component in their respective forward price curves, the fluctuations in fair value have been driven primarily by changes in the observable inputs. The following tables provide details surrounding significant Level 3 valuations as of March 31, 2020 and December 31, 2019.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Quantitative Information About Level 3 Fair Value Measurements
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Significant
 
 
 
 
 
 
 
 
Level 3
 
Fair Value as of
 
Valuation
 
Unobservable
 
 
 
Arithmetic
 
 
Commodity
 
Position
 
March 31, 2020
 
Technique(s)
 
 Input
 
Range
 
Average
 
 
 
 
 
 
Assets
 
(Liabilities)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Millions
 
 
 
 
 
 
 
 
 
 
PSEG Power
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Electricity
 
Electric Load Contracts
 
$
21

 
$
—

 
Discounted Cash flow
 
Load Shaping Cost
 
0% to 10%
 
3%
 
 
Gas
 
Gas Physical Contracts
 
—

 
(2
)
 
Discounted Cash flow
 
Average Historical Basis
 
-70% to 0%
 
-22%
 
 
Total PSEG Power
 
$
21

 
$
(2
)
 
 
 
 
 
 
 
 
 
 
Total PSEG
 
 
 
$
21

 
$
(2
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Quantitative Information About Level 3 Fair Value Measurements
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Significant
 
 
 
 
 
 
 
 
Fair Value as of
 
Valuation
 
Unobservable
 
 
 
 
Commodity
 
Level 3 Position
 
December 31, 2019
 
Technique(s)
 
 Input
 
Range
 
 
 
 
 
 
Assets
 
(Liabilities)
 
 
 
 
 
 
 
 
 
 
 
 
Millions
 
 
 
 
 
 
 
 
PSEG Power
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Electricity
 
Electric Load Contracts
 
$
10

 
$
—

 
Discounted Cash flow
 
Historic Load Variability
 
0% to 10%
 
 
Gas
 
Gas Physical Contracts
 
—

 
(3
)
 
Discounted Cash flow
 
Average Historical Basis
 
-50% to 0%
 
 
Total PSEG Power
 
 
 
$
10

 
$
(3
)
 
 
 
 
 
 
 
 
Total PSEG
 
 
 
$
10

 
$
(3
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

As of March 31, 2020, 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 PSEG Power is a seller, an increase in the load variability would decrease the fair value. For gas-related contracts in cases where PSEG Power is a buyer, an increase in the average historical basis would increase the fair value.
A reconciliation of the beginning and ending balances of Level 3 derivative contracts and securities for the three months ended March 31, 2020 and March 31, 2019, respectively, follows:
Changes in Level 3 Assets and (Liabilities) Measured at Fair Value on a Recurring Basis
for the Three Months Ended March 31, 2020
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended March 31, 2020
 
 
Description
 
Balance as of December 31, 2019
 
Total Gains or (Losses)
Realized/Unrealized Included in Income (A)
 
Purchases
(Sales)
 
Issuances/
Settlements
(B)
 
Transfers
In/Out (C)
 
Balance as of March 31, 2020
 
 
 
 
Millions
 
 
PSEG and PSEG Power
 
 
 
 
 
 
 
 
 
 
 
 
Net Derivative Assets (Liabilities)
 
$
7

 
$
13

 
$
—

 
$
(1
)
 
$
—

 
$
19

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Changes in Level 3 Assets and (Liabilities) Measured at Fair Value on a Recurring Basis
for the Three Months Ended March 31, 2019
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended March 31, 2019
 
 
Description
 
Balance as of December 31, 2018
 
Total Gains or (Losses)
Realized/Unrealized Included in Income (A)
 
Purchases
(Sales)
 
Issuances/
Settlements
(B)
 
Transfers
In/Out (C)
 
Balance as of March 31, 2019
 
 
 
 
Millions
 
 
PSEG and PSEG Power
 
 
 
 
 
 
 
 
 
 
 
 
Net Derivative Assets (Liabilities)
 
$
1

 
$
1

 
$
—

 
$
(4
)
 
$
—

 
$
(2
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(A)
Unrealized gains (losses) in the following table represent the change in derivative assets and liabilities still held as of March 31, 2020 and 2019.
.
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended March 31,
 
 
 
2020
 
2019
 
 
 
Total Gains (Losses)
 
Unrealized Gains (Losses)
 
Total Gains (Losses)
 
Unrealized Gains (Losses)
 
 
 
Millions
 
 
PSEG and PSEG Power
 
 
 
 
 
 
 
 
 
Operating Revenues
$
18

 
$
11

 
$
6

 
$
—

 
 
Energy Costs
(5
)
 
1

 
(5
)
 
(3
)
 
 
Total
$
13

 
$
12

 
$
1

 
$
(3
)
 
 
 
 
 
 
 
 
 
 
 

(B)
Includes settlements of $(1) million for the three months ended March 31, 2020 and $(4) million for the three months ended March 31, 2019.
(C)
There were no transfers into or out of Level 3 during the three months ended March 31, 2020 and 2019.
As of March 31, 2020, PSEG carried $2.7 billion of net assets that are measured at fair value on a recurring basis, of which $19 million of net assets was measured using unobservable inputs and classified as Level 3 within the fair value hierarchy.
As of March 31, 2019, PSEG carried $2.3 billion of net assets that are measured at fair value on a recurring basis, of which $2 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 March 31, 2020 and December 31, 2019.
 
 
 
 
 
 
 
 
 
 
 
 
As of
 
As of
 
 
 
March 31, 2020
 
December 31, 2019
 
 
 
Carrying
Amount
 
Fair
Value
 
Carrying
Amount
 
Fair
Value
 
 
 
Millions
 
 
Long-Term Debt:
 
 
 
 
 
 
 
 
 
PSEG (A) (B)
$
2,441

 
$
2,423

 
$
2,441

 
$
2,479

 
 
PSE&G (B)
10,423

 
11,569

 
9,827

 
11,107

 
 
PSEG Power (B)
2,841

 
2,766

 
2,840

 
3,137

 
 
Total Long-Term Debt
$
15,705

 
$
16,758

 
$
15,108

 
$
16,723

 
 
 
 
 
 
 
 
 
 
 
(A)
Includes floating-rate term loans of $700 million at PSEG as of March 31, 2020 and December 31, 2019. The fair values of the term loan debt (Level 2 measurement) approximate the carrying value because the interest payments are based on LIBOR rates that are reset monthly and the debt is redeemable at face value by PSEG at any time.
(B)
Given that these bonds do not trade actively, the fair value amounts of taxable debt securities (primarily Level 2 measurements) are generally determined by a valuation model that is based on a conventional discounted cash flow methodology. The fair value amounts above do not represent the price at which the outstanding debt may be called for redemption by each issuer under their respective debt agreements.
PSEG Power [Member]  
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
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, PSE&G and PSEG Power have the ability to access. These consist primarily of listed equity securities and money market mutual funds, as well as natural gas futures contracts executed on NYMEX.
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. These consist primarily of certain electric load contracts and gas contracts.
Certain derivative transactions may transfer from Level 2 to Level 3 if inputs become unobservable and internal modeling techniques are employed to determine fair value. Conversely, measurements may transfer from Level 3 to Level 2 if the inputs become observable.
The following tables present information about PSEG’s, PSE&G’s and PSEG Power’s respective assets and (liabilities) measured at fair value on a recurring basis as of March 31, 2020 and December 31, 2019, 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 PSE&G and PSEG Power.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Recurring Fair Value Measurements as of March 31, 2020
 
 
Description
 
Total
 

Netting (E)
 
Quoted Market Prices for Identical Assets
(Level 1)
 
Significant Other Observable Inputs (Level 2)
 
Significant Unobservable Inputs (Level 3)
 
 
 
 
Millions
 
 
PSEG
 
 
 
 
 
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
Cash Equivalents (A)
 
$
250

 
$
—

 
$
250

 
$
—

 
$
—

 
 
Derivative Contracts:
 
 
 
 
 
 
 
 
 
 
 
 
Energy-Related Contracts (B)
 
$
238

 
$
(939
)
 
$
24

 
$
1,132

 
$
21

 
 
NDT Fund (C)
 
 
 
 
 
 
 
 
 
 
 
 
Equity Securities
 
$
936

 
$
—

 
$
936

 
$
—

 
$
—

 
 
Debt Securities—U.S. Treasury
 
$
206

 
$
—

 
$
—

 
$
206

 
$
—

 
 
Debt Securities—Govt Other
 
$
358

 
$
—

 
$
—

 
$
358

 
$
—

 
 
Debt Securities—Corporate
 
$
527

 
$
—

 
$
—

 
$
527

 
$
—

 
 
Rabbi Trust (C)
 
 
 
 
 
 
 
 
 
 
 
 
Equity Securities
 
$
22

 
$
—

 
$
22

 
$
—

 
$
—

 
 
Debt Securities—U.S. Treasury
 
$
62

 
$
—

 
$
—

 
$
62

 
$
—

 
 
Debt Securities—Govt Other
 
$
48

 
$
—

 
$
—

 
$
48

 
$
—

 
 
Debt Securities—Corporate
 
$
112

 
$
—

 
$
—

 
$
112

 
$
—

 
 
Liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
Derivative Contracts:
 
 
 
 
 
 
 
 
 
 
 
 
Energy-Related Contracts (B)
 
$
(33
)
 
$
926

 
$
(73
)
 
$
(884
)
 
$
(2
)
 
 
Interest Rate Swaps (D)
 
$
(10
)
 
$
—

 
$
—

 
$
(10
)
 
$
—

 
 
PSE&G
 
 
 
 
 
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
Rabbi Trust (C)
 
 
 
 
 
 
 
 
 
 
 
 
Equity Securities
 
$
4

 
$
—

 
$
4

 
$
—

 
$
—

 
 
Debt Securities—U.S. Treasury
 
$
12

 
$
—

 
$
—

 
$
12

 
$
—

 
 
Debt Securities—Govt Other
 
$
9

 
$
—

 
$
—

 
$
9

 
$
—

 
 
Debt Securities—Corporate
 
$
22

 
$
—

 
$
—

 
$
22

 
$
—

 
 
PSEG Power
 

 
 
 
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
Derivative Contracts:
 
 
 
 
 
 
 
 
 
 
 
 
Energy-Related Contracts (B)
 
$
238

 
$
(939
)
 
$
24

 
$
1,132

 
$
21

 
 
NDT Fund (C)
 
 
 
 
 
 
 
 
 
 
 
 
Equity Securities
 
$
936

 
$
—

 
$
936

 
$
—

 
$
—

 
 
Debt Securities—U.S. Treasury
 
$
206

 
$
—

 
$
—

 
$
206

 
$
—

 
 
Debt Securities—Govt Other
 
$
358

 
$
—

 
$
—

 
$
358

 
$
—

 
 
Debt Securities—Corporate
 
$
527

 
$
—

 
$
—

 
$
527

 
$
—

 
 
Rabbi Trust (C)
 
 
 
 
 
 
 
 
 
 
 
 
Equity Securities
 
$
6

 
$
—

 
$
6

 
$
—

 
$
—

 
 
Debt Securities—U.S. Treasury
 
$
16

 
$
—

 
$
—

 
$
16

 
$
—

 
 
Debt Securities—Govt Other
 
$
12

 
$
—

 
$
—

 
$
12

 
$
—

 
 
Debt Securities—Corporate
 
$
27

 
$
—

 
$
—

 
$
27

 
$
—

 
 
Liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
Derivative Contracts:
 
 
 
 
 
 
 
 
 
 
 
 
Energy-Related Contracts (B)
 
$
(33
)
 
$
926

 
$
(73
)
 
$
(884
)
 
$
(2
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Recurring Fair Value Measurements as of December 31, 2019
 
 
Description
 
Total
 
Netting  (E)
 
Quoted Market Prices for Identical Assets
(Level 1)
 
Significant Other Observable Inputs (Level 2)
 
Significant Unobservable Inputs (Level 3)
 
 
 
 
Millions
 
 
PSEG
 
 
 
 
 
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
Cash Equivalents (A)
 
$
50

 
$
—

 
$
50

 
$
—

 
$
—

 
 
Derivative Contracts:
 
 
 
 
 
 
 
 
 
 
 
 
Energy-Related Contracts (B)
 
$
137

 
$
(662
)
 
$
19

 
$
770

 
$
10

 
 
NDT Fund (C)
 
 
 
 
 
 
 
 
 
 
 
 
Equity Securities
 
$
1,151

 
$
—

 
$
1,150

 
$
1

 
$
—

 
 
Debt Securities—U.S. Treasury
 
$
225

 
$
—

 
$
—

 
$
225

 
$
—

 
 
Debt Securities—Govt Other
 
$
352

 
$
—

 
$
—

 
$
352

 
$
—

 
 
Debt Securities—Corporate
 
$
486

 
$
—

 
$
—

 
$
486

 
$
—

 
 
Rabbi Trust (C)
 
 
 
 
 
 
 
 
 
 
 
 
Equity Securities
 
$
28

 
$
—

 
$
28

 
$
—

 
$
—

 
 
Debt Securities—U.S. Treasury
 
$
57

 
$
—

 
$
—

 
$
57

 
$
—

 
 
Debt Securities—Govt Other
 
$
47

 
$
—

 
$
—

 
$
47

 
$
—

 
 
Debt Securities—Corporate
 
$
114

 
$
—

 
$
—

 
$
114

 
$
—

 
 
Liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
Derivative Contracts:
 
 
 
 
 
 
 
 
 
 
 
 
Energy-Related Contracts (B)
 
$
(32
)
 
$
660

 
$
(43
)
 
$
(646
)
 
$
(3
)
 
 
   Interest Rate Swaps (D)
 
$
(5
)
 
$
—

 
$
—

 
$
(5
)
 
$
—

 
 
PSE&G
 
 
 
 
 
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
Rabbi Trust (C)
 
 
 
 
 
 
 
 
 
 
 
 
Equity Securities
 
$
5

 
$
—

 
$
5

 
$
—

 
$
—

 
 
Debt Securities—U.S. Treasury
 
$
11

 
$
—

 
$
—

 
$
11

 
$
—

 
 
Debt Securities—Govt Other
 
$
9

 
$
—

 
$
—

 
$
9

 
$
—

 
 
Debt Securities—Corporate
 
$
23

 
$
—

 
$
—

 
$
23

 
$
—

 
 
PSEG Power
 
 
 
 
 
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
Derivative Contracts:
 
 
 
 
 
 
 
 
 
 
 
 
Energy-Related Contracts (B)
 
$
137

 
$
(662
)
 
$
19

 
$
770

 
$
10

 
 
NDT Fund (C)
 
 
 
 
 
 
 
 
 
 
 
 
Equity Securities
 
$
1,151

 
$
—

 
$
1,150

 
$
1

 
$
—

 
 
Debt Securities—U.S. Treasury
 
$
225

 
$
—

 
$
—

 
$
225

 
$
—

 
 
Debt Securities—Govt Other
 
$
352

 
$
—

 
$
—

 
$
352

 
$
—

 
 
Debt Securities—Corporate
 
$
486

 
$
—

 
$
—

 
$
486

 
$
—

 
 
Rabbi Trust (C)
 
 
 
 
 
 
 
 
 
 
 
 
Equity Securities
 
$
8

 
$
—

 
$
8

 
$
—

 
$
—

 
 
Debt Securities—U.S. Treasury
 
$
14

 
$
—

 
$
—

 
$
14

 
$
—

 
 
Debt Securities—Govt Other
 
$
12

 
$
—

 
$
—

 
$
12

 
$
—

 
 
Debt Securities—Corporate
 
$
28

 
$
—

 
$
—

 
$
28

 
$
—

 
 
Liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
Derivative Contracts:
 
 
 
 
 
 
 
 
 
 
 
 
Energy-Related Contracts (B)
 
$
(32
)
 
$
660

 
$
(43
)
 
$
(646
)
 
$
(3
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 

(A)
Represents money market mutual funds.
(B)
Level 1—These contracts represent natural gas futures contracts executed on NYMEX, and are being valued solely on settled pricing inputs which come directly from the exchange.
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 settled prices from similar assets and liabilities from an exchange, such as NYMEX, ICE and Nodal Exchange, 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—Unobservable inputs are used for the valuation of certain contracts. See “Additional Information Regarding Level 3 Measurements” below for more information on the utilization of unobservable inputs.
(C)
As of December 31, 2019, the fair value measurement table excludes foreign currency of $2 million in the NDT Fund. The NDT Fund maintains investments in various equity and fixed income securities. The Rabbi Trust maintains investments in a Russell 3000 index fund and various fixed income securities. These securities are generally valued with prices that are either exchange provided (equity securities) or market transactions for comparable securities and/or broker quotes (fixed income securities).
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. Certain other equity securities in the NDT and Rabbi Trust Funds consist primarily of investments in money market funds which seek a high level of current income as is consistent with the preservation of capital and the maintenance of liquidity. To pursue its goals, the funds normally invest in diversified portfolios of high quality, short-term, dollar-denominated debt securities and government securities. The funds’ net asset value is priced and published daily. The Rabbi Trust’s Russell 3000 index fund is valued based on quoted prices in an active market and can be redeemed daily without restriction.
Level 2—NDT and Rabbi Trust fixed income securities include investment grade corporate bonds, collateralized mortgage obligations, asset-backed securities and certain government and U.S. Treasury obligations or Federal Agency asset-backed securities and municipal bonds 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. The preferred stocks are not actively traded on a daily basis and therefore, are also priced using an evaluated pricing methodology. Certain short-term investments are valued using observable market prices or market parameters such as time-to-maturity, coupon rate, quality rating and current yield.
(D)
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.
(E)
Represents the netting of fair value balances with the same counterparty (where the right of offset exists) and the application of collateral. See Note 13. Financial Risk Management Activities for additional detail.
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 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.
The fair value of PSEG 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. The fair value of PSEG Power’s gas physical contracts at certain illiquid delivery locations are measured using average historical basis and, accordingly, are categorized as Level 3. While these physical gas contracts have an unobservable component in their respective forward price curves, the fluctuations in fair value have been driven primarily by changes in the observable inputs. The following tables provide details surrounding significant Level 3 valuations as of March 31, 2020 and December 31, 2019.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Quantitative Information About Level 3 Fair Value Measurements
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Significant
 
 
 
 
 
 
 
 
Level 3
 
Fair Value as of
 
Valuation
 
Unobservable
 
 
 
Arithmetic
 
 
Commodity
 
Position
 
March 31, 2020
 
Technique(s)
 
 Input
 
Range
 
Average
 
 
 
 
 
 
Assets
 
(Liabilities)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Millions
 
 
 
 
 
 
 
 
 
 
PSEG Power
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Electricity
 
Electric Load Contracts
 
$
21

 
$
—

 
Discounted Cash flow
 
Load Shaping Cost
 
0% to 10%
 
3%
 
 
Gas
 
Gas Physical Contracts
 
—

 
(2
)
 
Discounted Cash flow
 
Average Historical Basis
 
-70% to 0%
 
-22%
 
 
Total PSEG Power
 
$
21

 
$
(2
)
 
 
 
 
 
 
 
 
 
 
Total PSEG
 
 
 
$
21

 
$
(2
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Quantitative Information About Level 3 Fair Value Measurements
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Significant
 
 
 
 
 
 
 
 
Fair Value as of
 
Valuation
 
Unobservable
 
 
 
 
Commodity
 
Level 3 Position
 
December 31, 2019
 
Technique(s)
 
 Input
 
Range
 
 
 
 
 
 
Assets
 
(Liabilities)
 
 
 
 
 
 
 
 
 
 
 
 
Millions
 
 
 
 
 
 
 
 
PSEG Power
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Electricity
 
Electric Load Contracts
 
$
10

 
$
—

 
Discounted Cash flow
 
Historic Load Variability
 
0% to 10%
 
 
Gas
 
Gas Physical Contracts
 
—

 
(3
)
 
Discounted Cash flow
 
Average Historical Basis
 
-50% to 0%
 
 
Total PSEG Power
 
 
 
$
10

 
$
(3
)
 
 
 
 
 
 
 
 
Total PSEG
 
 
 
$
10

 
$
(3
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

As of March 31, 2020, 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 PSEG Power is a seller, an increase in the load variability would decrease the fair value. For gas-related contracts in cases where PSEG Power is a buyer, an increase in the average historical basis would increase the fair value.
A reconciliation of the beginning and ending balances of Level 3 derivative contracts and securities for the three months ended March 31, 2020 and March 31, 2019, respectively, follows:
Changes in Level 3 Assets and (Liabilities) Measured at Fair Value on a Recurring Basis
for the Three Months Ended March 31, 2020
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended March 31, 2020
 
 
Description
 
Balance as of December 31, 2019
 
Total Gains or (Losses)
Realized/Unrealized Included in Income (A)
 
Purchases
(Sales)
 
Issuances/
Settlements
(B)
 
Transfers
In/Out (C)
 
Balance as of March 31, 2020
 
 
 
 
Millions
 
 
PSEG and PSEG Power
 
 
 
 
 
 
 
 
 
 
 
 
Net Derivative Assets (Liabilities)
 
$
7

 
$
13

 
$
—

 
$
(1
)
 
$
—

 
$
19

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Changes in Level 3 Assets and (Liabilities) Measured at Fair Value on a Recurring Basis
for the Three Months Ended March 31, 2019
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended March 31, 2019
 
 
Description
 
Balance as of December 31, 2018
 
Total Gains or (Losses)
Realized/Unrealized Included in Income (A)
 
Purchases
(Sales)
 
Issuances/
Settlements
(B)
 
Transfers
In/Out (C)
 
Balance as of March 31, 2019
 
 
 
 
Millions
 
 
PSEG and PSEG Power
 
 
 
 
 
 
 
 
 
 
 
 
Net Derivative Assets (Liabilities)
 
$
1

 
$
1

 
$
—

 
$
(4
)
 
$
—

 
$
(2
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(A)
Unrealized gains (losses) in the following table represent the change in derivative assets and liabilities still held as of March 31, 2020 and 2019.
.
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended March 31,
 
 
 
2020
 
2019
 
 
 
Total Gains (Losses)
 
Unrealized Gains (Losses)
 
Total Gains (Losses)
 
Unrealized Gains (Losses)
 
 
 
Millions
 
 
PSEG and PSEG Power
 
 
 
 
 
 
 
 
 
Operating Revenues
$
18

 
$
11

 
$
6

 
$
—

 
 
Energy Costs
(5
)
 
1

 
(5
)
 
(3
)
 
 
Total
$
13

 
$
12

 
$
1

 
$
(3
)
 
 
 
 
 
 
 
 
 
 
 

(B)
Includes settlements of $(1) million for the three months ended March 31, 2020 and $(4) million for the three months ended March 31, 2019.
(C)
There were no transfers into or out of Level 3 during the three months ended March 31, 2020 and 2019.
As of March 31, 2020, PSEG carried $2.7 billion of net assets that are measured at fair value on a recurring basis, of which $19 million of net assets was measured using unobservable inputs and classified as Level 3 within the fair value hierarchy.
As of March 31, 2019, PSEG carried $2.3 billion of net assets that are measured at fair value on a recurring basis, of which $2 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 March 31, 2020 and December 31, 2019.
 
 
 
 
 
 
 
 
 
 
 
 
As of
 
As of
 
 
 
March 31, 2020
 
December 31, 2019
 
 
 
Carrying
Amount
 
Fair
Value
 
Carrying
Amount
 
Fair
Value
 
 
 
Millions
 
 
Long-Term Debt:
 
 
 
 
 
 
 
 
 
PSEG (A) (B)
$
2,441

 
$
2,423

 
$
2,441

 
$
2,479

 
 
PSE&G (B)
10,423

 
11,569

 
9,827

 
11,107

 
 
PSEG Power (B)
2,841

 
2,766

 
2,840

 
3,137

 
 
Total Long-Term Debt
$
15,705

 
$
16,758

 
$
15,108

 
$
16,723

 
 
 
 
 
 
 
 
 
 
 
(A)
Includes floating-rate term loans of $700 million at PSEG as of March 31, 2020 and December 31, 2019. The fair values of the term loan debt (Level 2 measurement) approximate the carrying value because the interest payments are based on LIBOR rates that are reset monthly and the debt is redeemable at face value by PSEG at any time.
(B)
Given that these bonds do not trade actively, the fair value amounts of taxable debt securities (primarily Level 2 measurements) are generally determined by a valuation model that is based on a conventional discounted cash flow methodology. The fair value amounts above do not represent the price at which the outstanding debt may be called for redemption by each issuer under their respective debt agreements.
v3.20.1
Other Income (Deductions)
 3 Months Ended
Mar. 31, 2020
Component of Other Income (Deductions) [Line Items]  
Other Income (Deductions) Other Income (Deductions)
 
 
 
 
 
 
 
 
 
 
 
 
PSE&G
 
PSEG Power
 
Other (A)
 
Consolidated
 
 
 
Millions
 
 
Three Months Ended March 31, 2020
 
 
 
 
 
 
 
 
 
NDT Fund Interest and Dividends
$
—

 
$
13

 
$
—

 
$
13

 
 
Allowance for Funds Used During Construction
21

 
—

 
—

 
21

 
 
Solar Loan Interest
4

 
—

 
—

 
4

 
 
Purchases of Tax Losses under New Jersey Technology Tax Benefit Transfer Program
—

 
(35
)
 
—

 
(35
)
 
 
Other
2

 
(1
)
 
—

 
1

 
 
  Total Other Income (Deductions)
$
27

 
$
(23
)
 
$
—

 
$
4

 
 
Three Months Ended March 31, 2019
 
 
 
 
 
 
 
 
 
NDT Fund Interest and Dividends
$
—

 
$
14

 
$
—

 
$
14

 
 
Allowance for Funds Used During Construction
13

 
—

 
—

 
13

 
 
Solar Loan Interest
4

 
—

 
—

 
4

 
 
Other
2

 
(1
)
 
1

 
2

 
 
Total Other Income (Deductions)
$
19

 
$
13

 
$
1

 
$
33

 
 
 
 
 
 
 
 
 
 
 

(A)
Other consists of activity at PSEG (as parent company), Energy Holdings, Services, PSEG LI and intercompany eliminations.
Public Service Electric and Gas Company [Member]  
Component of Other Income (Deductions) [Line Items]  
Other Income (Deductions) Other Income (Deductions)
 
 
 
 
 
 
 
 
 
 
 
 
PSE&G
 
PSEG Power
 
Other (A)
 
Consolidated
 
 
 
Millions
 
 
Three Months Ended March 31, 2020
 
 
 
 
 
 
 
 
 
NDT Fund Interest and Dividends
$
—

 
$
13

 
$
—

 
$
13

 
 
Allowance for Funds Used During Construction
21

 
—

 
—

 
21

 
 
Solar Loan Interest
4

 
—

 
—

 
4

 
 
Purchases of Tax Losses under New Jersey Technology Tax Benefit Transfer Program
—

 
(35
)
 
—

 
(35
)
 
 
Other
2

 
(1
)
 
—

 
1

 
 
  Total Other Income (Deductions)
$
27

 
$
(23
)
 
$
—

 
$
4

 
 
Three Months Ended March 31, 2019
 
 
 
 
 
 
 
 
 
NDT Fund Interest and Dividends
$
—

 
$
14

 
$
—

 
$
14

 
 
Allowance for Funds Used During Construction
13

 
—

 
—

 
13

 
 
Solar Loan Interest
4

 
—

 
—

 
4

 
 
Other
2

 
(1
)
 
1

 
2

 
 
Total Other Income (Deductions)
$
19

 
$
13

 
$
1

 
$
33

 
 
 
 
 
 
 
 
 
 
 

(A)
Other consists of activity at PSEG (as parent company), Energy Holdings, Services, PSEG LI and intercompany eliminations.
PSEG Power [Member]  
Component of Other Income (Deductions) [Line Items]  
Other Income (Deductions) Other Income (Deductions)
 
 
 
 
 
 
 
 
 
 
 
 
PSE&G
 
PSEG Power
 
Other (A)
 
Consolidated
 
 
 
Millions
 
 
Three Months Ended March 31, 2020
 
 
 
 
 
 
 
 
 
NDT Fund Interest and Dividends
$
—

 
$
13

 
$
—

 
$
13

 
 
Allowance for Funds Used During Construction
21

 
—

 
—

 
21

 
 
Solar Loan Interest
4

 
—

 
—

 
4

 
 
Purchases of Tax Losses under New Jersey Technology Tax Benefit Transfer Program
—

 
(35
)
 
—

 
(35
)
 
 
Other
2

 
(1
)
 
—

 
1

 
 
  Total Other Income (Deductions)
$
27

 
$
(23
)
 
$
—

 
$
4

 
 
Three Months Ended March 31, 2019
 
 
 
 
 
 
 
 
 
NDT Fund Interest and Dividends
$
—

 
$
14

 
$
—

 
$
14

 
 
Allowance for Funds Used During Construction
13

 
—

 
—

 
13

 
 
Solar Loan Interest
4

 
—

 
—

 
4

 
 
Other
2

 
(1
)
 
1

 
2

 
 
Total Other Income (Deductions)
$
19

 
$
13

 
$
1

 
$
33

 
 
 
 
 
 
 
 
 
 
 

(A)
Other consists of activity at PSEG (as parent company), Energy Holdings, Services, PSEG LI and intercompany eliminations.
v3.20.1
Income Taxes
 3 Months Ended
Mar. 31, 2020
Income Taxes [Line Items]  
Income Taxes Income Taxes
PSEG’s, PSE&G’s and PSEG Power’s effective tax rates for the three months ended March 31, 2020 and 2019 were as follows:
 
 
 
 
 
 
 
 
Three Months Ended
 
 
 
March 31,
 
 
 
2020
 
2019
 
 
PSEG
8.9%
 
17.6%
 
 
PSE&G
19.9%
 
5.8%
 
 
PSEG Power
122.8%
 
29.5%
 
 
 
 
 
 
 

For the three months ended March 31, 2020, the difference in PSEG’s effective tax rate as compared to the same period in the prior year was due primarily to the benefit of purchasing 2019 net operating losses (NOLs) under the New Jersey Technology Tax Benefit Transfer Program in 2020, and the tax benefit of a pre-tax loss on the NDT qualified fund in 2020, which is subject to an additional trust tax. The difference in PSEG’s effective tax rate as compared to the statutory tax rate of 28.11% was due primarily to the flowback of PSE&G’s excess deferred income tax liabilities and tax repair-related accumulated deferred income taxes, the benefit of purchasing 2019 NOLs under the New Jersey Technology Tax Benefit Transfer Program in 2020, and the tax benefit of a pre-tax loss on the NDT qualified fund in 2020, which is subject to an additional trust tax.
For the three months ended March 31, 2020, the difference in PSE&G’s effective tax rate as compared to the same period in the prior year was due primarily to the reduction in the 2020 flowback of PSE&G’s excess deferred income tax liabilities, as PSE&G refunded all FERC-approved transmission-related excess deferred income taxes that are not subject to the normalization rules in 2019. The difference in PSE&G’s effective tax rate as compared to the statutory tax rate of 28.11% was
due primarily to the flowback of PSE&G’s excess deferred income tax liabilities and tax repair-related accumulated deferred income taxes.
For the three months ended March 31, 2020, the difference in PSEG Power’s effective tax rate as compared to the same period in the prior year and the statutory tax rate of 28.11% was due primarily to the favorable impacts the benefit of purchasing 2019 NOLs under the New Jersey Technology Tax Benefit Transfer Program in 2020 and the tax benefit of a pre-tax loss on the NDT qualified fund, which is subject to an additional trust tax, had on PSEG Power’s pre-tax loss.
Tax Act
Effective January 1, 2018, the Tax Cuts and Jobs Act of 2017 (Tax Act) established tax laws including, but not limited to, a limitation on deductible interest and limitations on the utilization of NOLS, such as eliminating carrybacks.
In November 2018, the IRS issued proposed regulations addressing the interest disallowance rules contained in the Tax Act. For non-regulated businesses, these rules set a cap on the amount of interest that can be deducted in a given year. Any amount that is disallowed can be carried forward indefinitely. For 2018 and 2019, the tax deductibility of a portion of PSEG’s and PSEG Power’s interest expense was disallowed and was recorded as a deferred tax asset as it is expected to be realized in future periods. Amounts recorded under the Tax Act and relevant statutes, including but not limited to depreciation and interest disallowance, are subject to change based on several factors, including but not limited to, the IRS and state taxing authorities issuing additional guidance and/or further clarification. Any further guidance or clarification could impact PSEG’s, PSE&G’s and PSEG Power’s financial statements.
Coronavirus Aid, Relief, and Economic Security Act (CARES Act)
In March 2020, the CARES Act was signed into federal law. As applicable to PSEG and PSEG Power, the CARES Act favorably increases the limitation on the amount of interest that can be deducted in 2020. The increased limitation will allow a portion of the previously disallowed amounts to reduce PSEG’s and PSEG Power’s 2020 taxable income. The CARES Act also reversed certain NOL provisions from the Tax Act such as allowing five-year carrybacks of 2018, 2019, and 2020 NOLs. This provision, coupled with anticipated Treasury-issued guidance may impact PSEG’s, PSE&G’s, and PSEG Power’s financial statements.
Unrecognized Tax Benefits
In April 2020, the Joint Committee on Taxation approved PSEG’s nuclear carryback claim and federal tax returns for the years 2011 and 2012. We anticipate this will enable PSEG to conclude the IRS’ federal income tax audit for years 2011 through 2016. As a result, in the second quarter of 2020, PSEG expects to decrease its total unrecognized tax benefits in the range of $130 million to $190 million, primarily related to temporary differences for which there are associated accumulated deferred income taxes.
New Jersey State Tax Reform
In July 2018, the State of New Jersey made changes to its income tax laws, including imposing a temporary surtax on allocated corporate taxable income of 2.5% effective January 1, 2018 and 2019 and 1.5% in 2020 and 2021, as well as requiring corporate taxpayers to file in a combined reporting group as defined under New Jersey law starting in 2019. Both provisions include an exemption for public utilities. PSEG believes PSE&G meets the definition of a public utility and, therefore, will not be impacted by the temporary surtax or be included in the combined reporting group.
There are certain aspects of the law that remain unclear. Any further guidance or clarification could impact PSEG’s and PSEG Power’s financial statements.
Public Service Electric and Gas Company [Member]  
Income Taxes [Line Items]  
Income Taxes Income Taxes
PSEG’s, PSE&G’s and PSEG Power’s effective tax rates for the three months ended March 31, 2020 and 2019 were as follows:
 
 
 
 
 
 
 
 
Three Months Ended
 
 
 
March 31,
 
 
 
2020
 
2019
 
 
PSEG
8.9%
 
17.6%
 
 
PSE&G
19.9%
 
5.8%
 
 
PSEG Power
122.8%
 
29.5%
 
 
 
 
 
 
 

For the three months ended March 31, 2020, the difference in PSEG’s effective tax rate as compared to the same period in the prior year was due primarily to the benefit of purchasing 2019 net operating losses (NOLs) under the New Jersey Technology Tax Benefit Transfer Program in 2020, and the tax benefit of a pre-tax loss on the NDT qualified fund in 2020, which is subject to an additional trust tax. The difference in PSEG’s effective tax rate as compared to the statutory tax rate of 28.11% was due primarily to the flowback of PSE&G’s excess deferred income tax liabilities and tax repair-related accumulated deferred income taxes, the benefit of purchasing 2019 NOLs under the New Jersey Technology Tax Benefit Transfer Program in 2020, and the tax benefit of a pre-tax loss on the NDT qualified fund in 2020, which is subject to an additional trust tax.
For the three months ended March 31, 2020, the difference in PSE&G’s effective tax rate as compared to the same period in the prior year was due primarily to the reduction in the 2020 flowback of PSE&G’s excess deferred income tax liabilities, as PSE&G refunded all FERC-approved transmission-related excess deferred income taxes that are not subject to the normalization rules in 2019. The difference in PSE&G’s effective tax rate as compared to the statutory tax rate of 28.11% was
due primarily to the flowback of PSE&G’s excess deferred income tax liabilities and tax repair-related accumulated deferred income taxes.
For the three months ended March 31, 2020, the difference in PSEG Power’s effective tax rate as compared to the same period in the prior year and the statutory tax rate of 28.11% was due primarily to the favorable impacts the benefit of purchasing 2019 NOLs under the New Jersey Technology Tax Benefit Transfer Program in 2020 and the tax benefit of a pre-tax loss on the NDT qualified fund, which is subject to an additional trust tax, had on PSEG Power’s pre-tax loss.
Tax Act
Effective January 1, 2018, the Tax Cuts and Jobs Act of 2017 (Tax Act) established tax laws including, but not limited to, a limitation on deductible interest and limitations on the utilization of NOLS, such as eliminating carrybacks.
In November 2018, the IRS issued proposed regulations addressing the interest disallowance rules contained in the Tax Act. For non-regulated businesses, these rules set a cap on the amount of interest that can be deducted in a given year. Any amount that is disallowed can be carried forward indefinitely. For 2018 and 2019, the tax deductibility of a portion of PSEG’s and PSEG Power’s interest expense was disallowed and was recorded as a deferred tax asset as it is expected to be realized in future periods. Amounts recorded under the Tax Act and relevant statutes, including but not limited to depreciation and interest disallowance, are subject to change based on several factors, including but not limited to, the IRS and state taxing authorities issuing additional guidance and/or further clarification. Any further guidance or clarification could impact PSEG’s, PSE&G’s and PSEG Power’s financial statements.
Coronavirus Aid, Relief, and Economic Security Act (CARES Act)
In March 2020, the CARES Act was signed into federal law. As applicable to PSEG and PSEG Power, the CARES Act favorably increases the limitation on the amount of interest that can be deducted in 2020. The increased limitation will allow a portion of the previously disallowed amounts to reduce PSEG’s and PSEG Power’s 2020 taxable income. The CARES Act also reversed certain NOL provisions from the Tax Act such as allowing five-year carrybacks of 2018, 2019, and 2020 NOLs. This provision, coupled with anticipated Treasury-issued guidance may impact PSEG’s, PSE&G’s, and PSEG Power’s financial statements.
Unrecognized Tax Benefits
In April 2020, the Joint Committee on Taxation approved PSEG’s nuclear carryback claim and federal tax returns for the years 2011 and 2012. We anticipate this will enable PSEG to conclude the IRS’ federal income tax audit for years 2011 through 2016. As a result, in the second quarter of 2020, PSEG expects to decrease its total unrecognized tax benefits in the range of $130 million to $190 million, primarily related to temporary differences for which there are associated accumulated deferred income taxes.
New Jersey State Tax Reform
In July 2018, the State of New Jersey made changes to its income tax laws, including imposing a temporary surtax on allocated corporate taxable income of 2.5% effective January 1, 2018 and 2019 and 1.5% in 2020 and 2021, as well as requiring corporate taxpayers to file in a combined reporting group as defined under New Jersey law starting in 2019. Both provisions include an exemption for public utilities. PSEG believes PSE&G meets the definition of a public utility and, therefore, will not be impacted by the temporary surtax or be included in the combined reporting group.
There are certain aspects of the law that remain unclear. Any further guidance or clarification could impact PSEG’s and PSEG Power’s financial statements.
PSEG Power [Member]  
Income Taxes [Line Items]  
Income Taxes Income Taxes
PSEG’s, PSE&G’s and PSEG Power’s effective tax rates for the three months ended March 31, 2020 and 2019 were as follows:
 
 
 
 
 
 
 
 
Three Months Ended
 
 
 
March 31,
 
 
 
2020
 
2019
 
 
PSEG
8.9%
 
17.6%
 
 
PSE&G
19.9%
 
5.8%
 
 
PSEG Power
122.8%
 
29.5%
 
 
 
 
 
 
 

For the three months ended March 31, 2020, the difference in PSEG’s effective tax rate as compared to the same period in the prior year was due primarily to the benefit of purchasing 2019 net operating losses (NOLs) under the New Jersey Technology Tax Benefit Transfer Program in 2020, and the tax benefit of a pre-tax loss on the NDT qualified fund in 2020, which is subject to an additional trust tax. The difference in PSEG’s effective tax rate as compared to the statutory tax rate of 28.11% was due primarily to the flowback of PSE&G’s excess deferred income tax liabilities and tax repair-related accumulated deferred income taxes, the benefit of purchasing 2019 NOLs under the New Jersey Technology Tax Benefit Transfer Program in 2020, and the tax benefit of a pre-tax loss on the NDT qualified fund in 2020, which is subject to an additional trust tax.
For the three months ended March 31, 2020, the difference in PSE&G’s effective tax rate as compared to the same period in the prior year was due primarily to the reduction in the 2020 flowback of PSE&G’s excess deferred income tax liabilities, as PSE&G refunded all FERC-approved transmission-related excess deferred income taxes that are not subject to the normalization rules in 2019. The difference in PSE&G’s effective tax rate as compared to the statutory tax rate of 28.11% was
due primarily to the flowback of PSE&G’s excess deferred income tax liabilities and tax repair-related accumulated deferred income taxes.
For the three months ended March 31, 2020, the difference in PSEG Power’s effective tax rate as compared to the same period in the prior year and the statutory tax rate of 28.11% was due primarily to the favorable impacts the benefit of purchasing 2019 NOLs under the New Jersey Technology Tax Benefit Transfer Program in 2020 and the tax benefit of a pre-tax loss on the NDT qualified fund, which is subject to an additional trust tax, had on PSEG Power’s pre-tax loss.
Tax Act
Effective January 1, 2018, the Tax Cuts and Jobs Act of 2017 (Tax Act) established tax laws including, but not limited to, a limitation on deductible interest and limitations on the utilization of NOLS, such as eliminating carrybacks.
In November 2018, the IRS issued proposed regulations addressing the interest disallowance rules contained in the Tax Act. For non-regulated businesses, these rules set a cap on the amount of interest that can be deducted in a given year. Any amount that is disallowed can be carried forward indefinitely. For 2018 and 2019, the tax deductibility of a portion of PSEG’s and PSEG Power’s interest expense was disallowed and was recorded as a deferred tax asset as it is expected to be realized in future periods. Amounts recorded under the Tax Act and relevant statutes, including but not limited to depreciation and interest disallowance, are subject to change based on several factors, including but not limited to, the IRS and state taxing authorities issuing additional guidance and/or further clarification. Any further guidance or clarification could impact PSEG’s, PSE&G’s and PSEG Power’s financial statements.
Coronavirus Aid, Relief, and Economic Security Act (CARES Act)
In March 2020, the CARES Act was signed into federal law. As applicable to PSEG and PSEG Power, the CARES Act favorably increases the limitation on the amount of interest that can be deducted in 2020. The increased limitation will allow a portion of the previously disallowed amounts to reduce PSEG’s and PSEG Power’s 2020 taxable income. The CARES Act also reversed certain NOL provisions from the Tax Act such as allowing five-year carrybacks of 2018, 2019, and 2020 NOLs. This provision, coupled with anticipated Treasury-issued guidance may impact PSEG’s, PSE&G’s, and PSEG Power’s financial statements.
Unrecognized Tax Benefits
In April 2020, the Joint Committee on Taxation approved PSEG’s nuclear carryback claim and federal tax returns for the years 2011 and 2012. We anticipate this will enable PSEG to conclude the IRS’ federal income tax audit for years 2011 through 2016. As a result, in the second quarter of 2020, PSEG expects to decrease its total unrecognized tax benefits in the range of $130 million to $190 million, primarily related to temporary differences for which there are associated accumulated deferred income taxes.
New Jersey State Tax Reform
In July 2018, the State of New Jersey made changes to its income tax laws, including imposing a temporary surtax on allocated corporate taxable income of 2.5% effective January 1, 2018 and 2019 and 1.5% in 2020 and 2021, as well as requiring corporate taxpayers to file in a combined reporting group as defined under New Jersey law starting in 2019. Both provisions include an exemption for public utilities. PSEG believes PSE&G meets the definition of a public utility and, therefore, will not be impacted by the temporary surtax or be included in the combined reporting group.
There are certain aspects of the law that remain unclear. Any further guidance or clarification could impact PSEG’s and PSEG Power’s financial statements.
v3.20.1
Accumulated Other Comprehensive Income (Loss), Net of Tax
 3 Months Ended
Mar. 31, 2020
Accumulated Other Comprehensive Income (Loss) [Line Items]  
Accumulated Other Comprehensive Income (Loss), Net of Tax Accumulated Other Comprehensive Income (Loss), Net of Tax
 
 
 
 
 
 
 
 
 
 
 
 
PSEG
 
Three Months Ended March 31, 2020
 
 
Accumulated Other Comprehensive Income (Loss)
 
Cash Flow Hedges
 
Pension and OPEB Plans
 
Available-for-Sale Securities
 
Total
 
 
 
 
Millions
 
 
Balance as of December 31, 2019
 
$
(15
)
 
$
(499
)
 
$
25

 
$
(489
)
 
 
Current Period Other Comprehensive Income (Loss)
 
 
 
 
 
 
 
 
 
 
Other Comprehensive Income before Reclassifications
 
(4
)
 
—

 
14

 
10

 
 
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss)
 
1

 
3

 
(6
)
 
(2
)
 
 
Net Current Period Other Comprehensive Income (Loss)
 
(3
)
 
3

 
8

 
8

 
 
Balance as of March 31, 2020
 
$
(18
)
 
$
(496
)
 
$
33

 
$
(481
)
 
 
 
 
 
 
 
 
 
 
 
 
 
PSEG
 
Three Months Ended March 31, 2019
 
 
Accumulated Other Comprehensive Income (Loss)
 
Cash Flow Hedges
 
Pension and OPEB Plans
 
Available-for-Sale Securities
 
Total
 
 
 
 
Millions
 
 
Balance as of December 31, 2018
 
$
(1
)
 
$
(360
)
 
$
(16
)
 
$
(377
)
 
 
Cumulative Effect Adjustment to Reclassify Stranded Tax Effects Resulting in the Change in the Federal Corporate Income Tax to Retained Earnings
 
—

 
(81
)
 
—

 
(81
)
 
 
Current Period Other Comprehensive Income (Loss)
 
 
 
 
 
 
 
 
 
 
Other Comprehensive Income before Reclassifications
 
(4
)
 
(3
)
 
20

 
13

 
 
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss)
 
—

 
3

 
1

 
4

 
 
Net Current Period Other Comprehensive Income (Loss)
 
(4
)
 
—

 
21

 
17

 
 
Net Change in Accumulated Other Comprehensive Income (Loss)
 
(4
)
 
(81
)
 
21

 
(64
)
 
 
Balance as of March 31, 2019
 
$
(5
)
 
$
(441
)
 
$
5

 
$
(441
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
PSEG Power
 
Three Months Ended March 31, 2020
 
 
Accumulated Other Comprehensive Income (Loss)
 
Cash Flow Hedges
 
Pension and OPEB Plans
 
Available-for-Sale Securities
 
Total
 
 
 
 
Millions
 
 
Balance as of December 31, 2019
 
$
—

 
$
(420
)
 
$
19

 
$
(401
)
 
 
Current Period Other Comprehensive Income (Loss)
 
 
 
 
 
 
 
 
 
 
Other Comprehensive Income before Reclassifications
 
—

 
—

 
11

 
11

 
 
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss)
 
—

 
2

 
(4
)
 
(2
)
 
 
Net Current Period Other Comprehensive Income (Loss)
 
—

 
2

 
7

 
9

 
 
Balance as of March 31, 2020
 
$
—

 
$
(418
)
 
$
26

 
$
(392
)
 
 
 
 
 
 
 
 
 
 
 
 
 
PSEG Power
 
Three Months Ended March 31, 2019
 
 
Accumulated Other Comprehensive Income (Loss)
 
Cash Flow Hedges
 
Pension and OPEB Plans
 
Available-for-Sale Securities
 
Total
 
 
 
 
Millions
 
 
Balance as of December 31, 2018
 
$
—

 
$
(306
)
 
$
(13
)
 
$
(319
)
 
 
Cumulative Effect Adjustment to Reclassify Stranded Tax Effects Resulting in the Change in the Federal Corporate Income Tax to Retained Earnings
 
—

 
(69
)
 
—

 
(69
)
 
 
Current Period Other Comprehensive Income (Loss)
 
 
 
 
 
 
 
 
 
 
Other Comprehensive Income before Reclassifications
 
—

 
(3
)
 
15

 
12

 
 
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss)
 
—

 
3

 
1

 
4

 
 
Net Current Period Other Comprehensive Income (Loss)
 
—

 
—

 
16

 
16

 
 
Net Change in Accumulated Other Comprehensive Income (Loss)
 
—

 
(69
)
 
16

 
(53
)
 
 
Balance as of March 31, 2019
 
$
—

 
$
(375
)
 
$
3

 
$
(372
)
 
 
 
 
 
 
 
 
 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
PSEG
 
 
 Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) to Income Statement
 
 
 
 
 
Three Months Ended
 
 
Description of Amounts Reclassified from Accumulated Other Comprehensive Income (Loss)
 
Location of Pre-Tax Amount In Statement of Operations
March 31, 2020
 
 
 
Pre-Tax Amount
 
Tax (Expense) Benefit
 
After-Tax Amount
 
 
 
 
 
Millions
 
 
Cash Flow Hedges
 
 
 
 
 
 
 
 
 
Interest Rate Swaps
 
Interest Expense
$
(2
)
 
$
1

 
$
(1
)
 
 
Total Cash Flow Hedges
 
 
(2
)
 
1

 
(1
)
 
 
Pension and OPEB Plans
 
 
 
 
 
 
 
Amortization of Prior Service (Cost) Credit
 
Non-Operating Pension and OPEB Credits (Costs)
6

 
(2
)
 
4

 
 
Amortization of Actuarial Loss
 
Non-Operating Pension and OPEB Credits (Costs)
(10
)
 
3

 
(7
)
 
 
Total Pension and OPEB Plans
(4
)
 
1

 
(3
)
 
 
Available-for-Sale Debt Securities
 
 
 
 
 
 
 
Realized Gains (Losses) and Impairments
 
Net Gains (Losses) on Trust Investments
9

 
(3
)
 
6

 
 
Total Available-for-Sale Debt Securities
9

 
(3
)
 
6

 
 
Total
 
 
$
3

 
$
(1
)
 
$
2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
PSEG
 
 
 Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) to Income Statement
 
 
 
 
 
Three Months Ended
 
 
Description of Amounts Reclassified from Accumulated Other Comprehensive Income (Loss)
 
Location of Pre-Tax Amount In Statement of Operations
March 31, 2019
 
 
 
Pre-Tax Amount
 
Tax (Expense) Benefit
 
After-Tax Amount
 
 
 
 
 
Millions
 
 
Pension and OPEB Plans
 
 
 
 
 
 
 
Amortization of Prior Service (Cost) Credit
 
Non-Operating Pension and OPEB Credits (Costs)
$
7

 
$
(2
)
 
$
5

 
 
Amortization of Actuarial Loss
 
Non-Operating Pension and OPEB Credits (Costs)
(12
)
 
4

 
(8
)
 
 
Total Pension and OPEB Plans
(5
)
 
2

 
(3
)
 
 
Available-for-Sale Debt Securities
 
 
 
 
 
 
 
Realized Gains (Losses)
 
Net Gains (Losses) on Trust Investments
(1
)
 
—

 
(1
)
 
 
Total Available-for-Sale Debt Securities
(1
)
 
—

 
(1
)
 
 
Total
 
 
$
(6
)
 
$
2

 
$
(4
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
PSEG Power
 
 
 Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) to Income Statement
 
 
 
 
 
Three Months Ended
 
 
Description of Amounts Reclassified from Accumulated Other Comprehensive Income (Loss)
 
Location of Pre-Tax Amount In Statement of Operations
March 31, 2020
 
 
 
Pre-Tax Amount
 
Tax (Expense) Benefit
 
After-Tax Amount
 
 
 
 
 
Millions
 
 
Pension and OPEB Plans
 
 
 
 
 
 
 
Amortization of Prior Service (Cost) Credit
 
Non-Operating Pension and OPEB Credits (Costs)
$
5

 
$
(1
)
 
$
4

 
 
Amortization of Actuarial Loss
 
Non-Operating Pension and OPEB Credits (Costs)
(8
)
 
2

 
(6
)
 
 
Total Pension and OPEB Plans
(3
)
 
1

 
(2
)
 
 
Available-for-Sale Debt Securities
 
 
 
 
 
 
 
Realized Gains (Losses) and Impairments
 
Net Gains (Losses) on Trust Investments
7

 
(3
)
 
4

 
 
Total Available-for-Sale Debt Securities
7

 
(3
)
 
4

 
 
Total
 
 
$
4

 
$
(2
)
 
$
2

 
 
 
 
 
 
 
 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
PSEG Power
 
 
 Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) to Income Statement
 
 
 
 
 
Three Months Ended
 
 
Description of Amounts Reclassified from Accumulated Other Comprehensive Income (Loss)
 
Location of Pre-Tax Amount In Statement of Operations
March 31, 2019
 
 
 
Pre-Tax Amount
 
Tax (Expense) Benefit
 
After-Tax Amount
 
 
 
 
 
Millions
 
 
Pension and OPEB Plans
 
 
 
 
 
 
 
Amortization of Prior Service (Cost) Credit
 
Non-Operating Pension and OPEB Credits (Costs)
$
6

 
$
(2
)
 
$
4

 
 
Amortization of Actuarial Loss
 
Non-Operating Pension and OPEB Credits (Costs)
(10
)
 
3

 
(7
)
 
 
Total Pension and OPEB Plans
(4
)
 
1

 
(3
)
 
 
Available-for-Sale Debt Securities
 
 
 
 
 
 
 
Realized Gains (Losses)
 
Net Gains (Losses) on Trust Investments
(1
)
 
—

 
(1
)
 
 
Total Available-for-Sale Debt Securities
(1
)
 
—

 
(1
)
 
 
Total
 
 
$
(5
)
 
$
1

 
$
(4
)
 
 
 
 
 
 
 
 
 
 
 
PSEG Power [Member]  
Accumulated Other Comprehensive Income (Loss) [Line Items]  
Accumulated Other Comprehensive Income (Loss), Net of Tax Accumulated Other Comprehensive Income (Loss), Net of Tax
 
 
 
 
 
 
 
 
 
 
 
 
PSEG
 
Three Months Ended March 31, 2020
 
 
Accumulated Other Comprehensive Income (Loss)
 
Cash Flow Hedges
 
Pension and OPEB Plans
 
Available-for-Sale Securities
 
Total
 
 
 
 
Millions
 
 
Balance as of December 31, 2019
 
$
(15
)
 
$
(499
)
 
$
25

 
$
(489
)
 
 
Current Period Other Comprehensive Income (Loss)
 
 
 
 
 
 
 
 
 
 
Other Comprehensive Income before Reclassifications
 
(4
)
 
—

 
14

 
10

 
 
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss)
 
1

 
3

 
(6
)
 
(2
)
 
 
Net Current Period Other Comprehensive Income (Loss)
 
(3
)
 
3

 
8

 
8

 
 
Balance as of March 31, 2020
 
$
(18
)
 
$
(496
)
 
$
33

 
$
(481
)
 
 
 
 
 
 
 
 
 
 
 
 
 
PSEG
 
Three Months Ended March 31, 2019
 
 
Accumulated Other Comprehensive Income (Loss)
 
Cash Flow Hedges
 
Pension and OPEB Plans
 
Available-for-Sale Securities
 
Total
 
 
 
 
Millions
 
 
Balance as of December 31, 2018
 
$
(1
)
 
$
(360
)
 
$
(16
)
 
$
(377
)
 
 
Cumulative Effect Adjustment to Reclassify Stranded Tax Effects Resulting in the Change in the Federal Corporate Income Tax to Retained Earnings
 
—

 
(81
)
 
—

 
(81
)
 
 
Current Period Other Comprehensive Income (Loss)
 
 
 
 
 
 
 
 
 
 
Other Comprehensive Income before Reclassifications
 
(4
)
 
(3
)
 
20

 
13

 
 
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss)
 
—

 
3

 
1

 
4

 
 
Net Current Period Other Comprehensive Income (Loss)
 
(4
)
 
—

 
21

 
17

 
 
Net Change in Accumulated Other Comprehensive Income (Loss)
 
(4
)
 
(81
)
 
21

 
(64
)
 
 
Balance as of March 31, 2019
 
$
(5
)
 
$
(441
)
 
$
5

 
$
(441
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
PSEG Power
 
Three Months Ended March 31, 2020
 
 
Accumulated Other Comprehensive Income (Loss)
 
Cash Flow Hedges
 
Pension and OPEB Plans
 
Available-for-Sale Securities
 
Total
 
 
 
 
Millions
 
 
Balance as of December 31, 2019
 
$
—

 
$
(420
)
 
$
19

 
$
(401
)
 
 
Current Period Other Comprehensive Income (Loss)
 
 
 
 
 
 
 
 
 
 
Other Comprehensive Income before Reclassifications
 
—

 
—

 
11

 
11

 
 
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss)
 
—

 
2

 
(4
)
 
(2
)
 
 
Net Current Period Other Comprehensive Income (Loss)
 
—

 
2

 
7

 
9

 
 
Balance as of March 31, 2020
 
$
—

 
$
(418
)
 
$
26

 
$
(392
)
 
 
 
 
 
 
 
 
 
 
 
 
 
PSEG Power
 
Three Months Ended March 31, 2019
 
 
Accumulated Other Comprehensive Income (Loss)
 
Cash Flow Hedges
 
Pension and OPEB Plans
 
Available-for-Sale Securities
 
Total
 
 
 
 
Millions
 
 
Balance as of December 31, 2018
 
$
—

 
$
(306
)
 
$
(13
)
 
$
(319
)
 
 
Cumulative Effect Adjustment to Reclassify Stranded Tax Effects Resulting in the Change in the Federal Corporate Income Tax to Retained Earnings
 
—

 
(69
)
 
—

 
(69
)
 
 
Current Period Other Comprehensive Income (Loss)
 
 
 
 
 
 
 
 
 
 
Other Comprehensive Income before Reclassifications
 
—

 
(3
)
 
15

 
12

 
 
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss)
 
—

 
3

 
1

 
4

 
 
Net Current Period Other Comprehensive Income (Loss)
 
—

 
—

 
16

 
16

 
 
Net Change in Accumulated Other Comprehensive Income (Loss)
 
—

 
(69
)
 
16

 
(53
)
 
 
Balance as of March 31, 2019
 
$
—

 
$
(375
)
 
$
3

 
$
(372
)
 
 
 
 
 
 
 
 
 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
PSEG
 
 
 Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) to Income Statement
 
 
 
 
 
Three Months Ended
 
 
Description of Amounts Reclassified from Accumulated Other Comprehensive Income (Loss)
 
Location of Pre-Tax Amount In Statement of Operations
March 31, 2020
 
 
 
Pre-Tax Amount
 
Tax (Expense) Benefit
 
After-Tax Amount
 
 
 
 
 
Millions
 
 
Cash Flow Hedges
 
 
 
 
 
 
 
 
 
Interest Rate Swaps
 
Interest Expense
$
(2
)
 
$
1

 
$
(1
)
 
 
Total Cash Flow Hedges
 
 
(2
)
 
1

 
(1
)
 
 
Pension and OPEB Plans
 
 
 
 
 
 
 
Amortization of Prior Service (Cost) Credit
 
Non-Operating Pension and OPEB Credits (Costs)
6

 
(2
)
 
4

 
 
Amortization of Actuarial Loss
 
Non-Operating Pension and OPEB Credits (Costs)
(10
)
 
3

 
(7
)
 
 
Total Pension and OPEB Plans
(4
)
 
1

 
(3
)
 
 
Available-for-Sale Debt Securities
 
 
 
 
 
 
 
Realized Gains (Losses) and Impairments
 
Net Gains (Losses) on Trust Investments
9

 
(3
)
 
6

 
 
Total Available-for-Sale Debt Securities
9

 
(3
)
 
6

 
 
Total
 
 
$
3

 
$
(1
)
 
$
2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
PSEG
 
 
 Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) to Income Statement
 
 
 
 
 
Three Months Ended
 
 
Description of Amounts Reclassified from Accumulated Other Comprehensive Income (Loss)
 
Location of Pre-Tax Amount In Statement of Operations
March 31, 2019
 
 
 
Pre-Tax Amount
 
Tax (Expense) Benefit
 
After-Tax Amount
 
 
 
 
 
Millions
 
 
Pension and OPEB Plans
 
 
 
 
 
 
 
Amortization of Prior Service (Cost) Credit
 
Non-Operating Pension and OPEB Credits (Costs)
$
7

 
$
(2
)
 
$
5

 
 
Amortization of Actuarial Loss
 
Non-Operating Pension and OPEB Credits (Costs)
(12
)
 
4

 
(8
)
 
 
Total Pension and OPEB Plans
(5
)
 
2

 
(3
)
 
 
Available-for-Sale Debt Securities
 
 
 
 
 
 
 
Realized Gains (Losses)
 
Net Gains (Losses) on Trust Investments
(1
)
 
—

 
(1
)
 
 
Total Available-for-Sale Debt Securities
(1
)
 
—

 
(1
)
 
 
Total
 
 
$
(6
)
 
$
2

 
$
(4
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
PSEG Power
 
 
 Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) to Income Statement
 
 
 
 
 
Three Months Ended
 
 
Description of Amounts Reclassified from Accumulated Other Comprehensive Income (Loss)
 
Location of Pre-Tax Amount In Statement of Operations
March 31, 2020
 
 
 
Pre-Tax Amount
 
Tax (Expense) Benefit
 
After-Tax Amount
 
 
 
 
 
Millions
 
 
Pension and OPEB Plans
 
 
 
 
 
 
 
Amortization of Prior Service (Cost) Credit
 
Non-Operating Pension and OPEB Credits (Costs)
$
5

 
$
(1
)
 
$
4

 
 
Amortization of Actuarial Loss
 
Non-Operating Pension and OPEB Credits (Costs)
(8
)
 
2

 
(6
)
 
 
Total Pension and OPEB Plans
(3
)
 
1

 
(2
)
 
 
Available-for-Sale Debt Securities
 
 
 
 
 
 
 
Realized Gains (Losses) and Impairments
 
Net Gains (Losses) on Trust Investments
7

 
(3
)
 
4

 
 
Total Available-for-Sale Debt Securities
7

 
(3
)
 
4

 
 
Total
 
 
$
4

 
$
(2
)
 
$
2

 
 
 
 
 
 
 
 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
PSEG Power
 
 
 Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) to Income Statement
 
 
 
 
 
Three Months Ended
 
 
Description of Amounts Reclassified from Accumulated Other Comprehensive Income (Loss)
 
Location of Pre-Tax Amount In Statement of Operations
March 31, 2019
 
 
 
Pre-Tax Amount
 
Tax (Expense) Benefit
 
After-Tax Amount
 
 
 
 
 
Millions
 
 
Pension and OPEB Plans
 
 
 
 
 
 
 
Amortization of Prior Service (Cost) Credit
 
Non-Operating Pension and OPEB Credits (Costs)
$
6

 
$
(2
)
 
$
4

 
 
Amortization of Actuarial Loss
 
Non-Operating Pension and OPEB Credits (Costs)
(10
)
 
3

 
(7
)
 
 
Total Pension and OPEB Plans
(4
)
 
1

 
(3
)
 
 
Available-for-Sale Debt Securities
 
 
 
 
 
 
 
Realized Gains (Losses)
 
Net Gains (Losses) on Trust Investments
(1
)
 
—

 
(1
)
 
 
Total Available-for-Sale Debt Securities
(1
)
 
—

 
(1
)
 
 
Total
 
 
$
(5
)
 
$
1

 
$
(4
)
 
 
 
 
 
 
 
 
 
 
 
v3.20.1
Earnings Per Share (EPS) and Dividends
 3 Months Ended
Mar. 31, 2020
Earnings Per Share [Abstract]  
Earnings Per Share (EPS) and Dividends Earnings Per Share (EPS) and Dividends
EPS
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 share units or restricted stock units. The following table shows the effect of these stock options, performance share units and restricted stock units on the weighted average number of shares outstanding used in calculating diluted EPS:
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended March 31,
 
 
 
2020
 
2019
 
 
 
Basic
 
Diluted
 
Basic
 
Diluted
 
 
EPS Numerator (Millions):
 
 
 
 
 
 
 
 
 
Net Income
$
448

 
$
448

 
$
700

 
$
700

 
 
EPS Denominator (Millions):
 
 
 
 
 
 
 
 
 
Weighted Average Common Shares Outstanding
504

 
504

 
504

 
504

 
 
Effect of Stock Based Compensation Awards
—

 
3

 
—

 
3

 
 
Total Shares
504

 
507

 
504

 
507

 
 
 
 
 
 
 
 
 
 
 
 
EPS
 
 
 
 
 
 
 
 
 
Net Income
$
0.89

 
$
0.88

 
$
1.39

 
$
1.38

 
 
 
 
 
 
 
 
 
 
 
Dividends
 
 
 
 
 
 
 
 
Three Months Ended
 
 
 
March 31,
 
 
Dividend Payments on Common Stock
2020
 
2019
 
 
Per Share
$
0.49

 
$
0.47

 
 
In Millions
$
248

 
$
238

 
 
 
 
 
 
 
On April 21, 2020, the PSEG Board approved a $0.49 per share common stock dividend for the second quarter of 2020.
v3.20.1
Financial Information By Business Segments
 3 Months Ended
Mar. 31, 2020
Segment Reporting Information [Line Items]  
Financial Information By Business Segments Financial Information by Business Segment
 
 
 
 
 
 
 
 
 
 
 
 
 
 
PSE&G
 
PSEG Power
 
Other (A)
 
Eliminations (B)
 
Consolidated Total
 
 
 
Millions
 
 
Three Months Ended March 31, 2020
 
 
 
 
 
 
 
 
 
 
 
Operating Revenues
$
1,883

 
$
1,220

 
$
156

 
$
(478
)
 
$
2,781

 
 
Net Income (Loss)
440

 
13

 
(5
)
 
—

 
448

 
 
Gross Additions to Long-Lived Assets
620

 
97

 
3

 
—

 
720

 
 
Three Months Ended March 31, 2019
 
 
 
 
 
 
 
 
 
 
 
Operating Revenues
$
2,032

 
$
1,416

 
$
141

 
$
(609
)
 
$
2,980

 
 
Net Income (Loss)
403

 
296

 
1

 
—

 
700

 
 
Gross Additions to Long-Lived Assets
625

 
167

 
3

 
—

 
795

 
 
As of March 31, 2020
 
 
 
 
 
 
 
 
 
 
 
Total Assets
$
33,627

 
$
12,847

 
$
3,296

 
$
(1,405
)
 
$
48,365

 
 
Investments in Equity Method Subsidiaries
$
—

 
$
68

 
$
1

 
$
—

 
$
69

 
 
As of December 31, 2019
 
 
 
 
 
 
 
 
 
 
 
Total Assets
$
33,266

 
$
12,805

 
$
2,715

 
$
(1,056
)
 
$
47,730

 
 
Investments in Equity Method Subsidiaries
$
—

 
$
66

 
$
1

 
$
—

 
$
67

 
 
 
 
 
 
 
 
 
 
 
 
 
(A)
Includes amounts applicable to Energy Holdings and PSEG LI, which are below the quantitative threshold for separate disclosure as reportable segments. Other also includes amounts applicable to PSEG (parent company) and Services.
(B)
Intercompany eliminations primarily relate to intercompany transactions between PSE&G and PSEG Power. For a further discussion of the intercompany transactions between PSE&G and PSEG Power, see Note 20. Related-Party Transactions.
Public Service Electric and Gas Company [Member]  
Segment Reporting Information [Line Items]  
Financial Information By Business Segments Financial Information by Business Segment
 
 
 
 
 
 
 
 
 
 
 
 
 
 
PSE&G
 
PSEG Power
 
Other (A)
 
Eliminations (B)
 
Consolidated Total
 
 
 
Millions
 
 
Three Months Ended March 31, 2020
 
 
 
 
 
 
 
 
 
 
 
Operating Revenues
$
1,883

 
$
1,220

 
$
156

 
$
(478
)
 
$
2,781

 
 
Net Income (Loss)
440

 
13

 
(5
)
 
—

 
448

 
 
Gross Additions to Long-Lived Assets
620

 
97

 
3

 
—

 
720

 
 
Three Months Ended March 31, 2019
 
 
 
 
 
 
 
 
 
 
 
Operating Revenues
$
2,032

 
$
1,416

 
$
141

 
$
(609
)
 
$
2,980

 
 
Net Income (Loss)
403

 
296

 
1

 
—

 
700

 
 
Gross Additions to Long-Lived Assets
625

 
167

 
3

 
—

 
795

 
 
As of March 31, 2020
 
 
 
 
 
 
 
 
 
 
 
Total Assets
$
33,627

 
$
12,847

 
$
3,296

 
$
(1,405
)
 
$
48,365

 
 
Investments in Equity Method Subsidiaries
$
—

 
$
68

 
$
1

 
$
—

 
$
69

 
 
As of December 31, 2019
 
 
 
 
 
 
 
 
 
 
 
Total Assets
$
33,266

 
$
12,805

 
$
2,715

 
$
(1,056
)
 
$
47,730

 
 
Investments in Equity Method Subsidiaries
$
—

 
$
66

 
$
1

 
$
—

 
$
67

 
 
 
 
 
 
 
 
 
 
 
 
 
(A)
Includes amounts applicable to Energy Holdings and PSEG LI, which are below the quantitative threshold for separate disclosure as reportable segments. Other also includes amounts applicable to PSEG (parent company) and Services.
(B)
Intercompany eliminations primarily relate to intercompany transactions between PSE&G and PSEG Power. For a further discussion of the intercompany transactions between PSE&G and PSEG Power, see Note 20. Related-Party Transactions.
PSEG Power [Member]  
Segment Reporting Information [Line Items]  
Financial Information By Business Segments Financial Information by Business Segment
 
 
 
 
 
 
 
 
 
 
 
 
 
 
PSE&G
 
PSEG Power
 
Other (A)
 
Eliminations (B)
 
Consolidated Total
 
 
 
Millions
 
 
Three Months Ended March 31, 2020
 
 
 
 
 
 
 
 
 
 
 
Operating Revenues
$
1,883

 
$
1,220

 
$
156

 
$
(478
)
 
$
2,781

 
 
Net Income (Loss)
440

 
13

 
(5
)
 
—

 
448

 
 
Gross Additions to Long-Lived Assets
620

 
97

 
3

 
—

 
720

 
 
Three Months Ended March 31, 2019
 
 
 
 
 
 
 
 
 
 
 
Operating Revenues
$
2,032

 
$
1,416

 
$
141

 
$
(609
)
 
$
2,980

 
 
Net Income (Loss)
403

 
296

 
1

 
—

 
700

 
 
Gross Additions to Long-Lived Assets
625

 
167

 
3

 
—

 
795

 
 
As of March 31, 2020
 
 
 
 
 
 
 
 
 
 
 
Total Assets
$
33,627

 
$
12,847

 
$
3,296

 
$
(1,405
)
 
$
48,365

 
 
Investments in Equity Method Subsidiaries
$
—

 
$
68

 
$
1

 
$
—

 
$
69

 
 
As of December 31, 2019
 
 
 
 
 
 
 
 
 
 
 
Total Assets
$
33,266

 
$
12,805

 
$
2,715

 
$
(1,056
)
 
$
47,730

 
 
Investments in Equity Method Subsidiaries
$
—

 
$
66

 
$
1

 
$
—

 
$
67

 
 
 
 
 
 
 
 
 
 
 
 
 
(A)
Includes amounts applicable to Energy Holdings and PSEG LI, which are below the quantitative threshold for separate disclosure as reportable segments. Other also includes amounts applicable to PSEG (parent company) and Services.
(B)
Intercompany eliminations primarily relate to intercompany transactions between PSE&G and PSEG Power. For a further discussion of the intercompany transactions between PSE&G and PSEG Power, see Note 20. Related-Party Transactions.
v3.20.1
Related-Party Transactions
 3 Months Ended
Mar. 31, 2020
Related Party Transaction [Line Items]  
Related-Party Transactions Related-Party Transactions
The following discussion relates to intercompany transactions, which are eliminated during the PSEG consolidation process in accordance with GAAP.
PSE&G
The financial statements for PSE&G include transactions with related parties presented as follows:
 
 
 
 
 
 
 
 
Three Months Ended
 
 
 
March 31,
 
 
Related-Party Transactions
2020
 
2019
 
 
 
Millions
 
 
Billings from Affiliates:
 
 
 
 
 
Net Billings from PSEG Power (A)
$
490

 
$
633

 
 
Administrative Billings from Services (B)
78

 
75

 
 
Total Billings from Affiliates
$
568

 
$
708

 
 
 
 
 
 
 

 
 
 
 
 
 
 
 
As of
 
As of
 
 
Related-Party Transactions
March 31, 2020
 
December 31, 2019
 
 
 
Millions
 
 
Receivable from PSEG (C)
$
—

 
$
1

 
 
Payable to PSEG Power (A)
$
284

 
$
307

 
 
Payable to Services (B)
68

 
83

 
 
Payable to PSEG (C)
51

 
—

 
 
Accounts Payable—Affiliated Companies
$
403

 
$
390

 
 
Working Capital Advances to Services (D)
$
33

 
$
33

 
 
Long-Term Accrued Taxes Payable 
$
114

 
$
115

 
 
 
 
 
 
 

PSEG Power
The financial statements for PSEG Power include transactions with related parties presented as follows:
 
 
 
 
 
 
 
 
Three Months Ended
 
 
 
March 31,
 
 
Related-Party Transactions
2020
 
2019
 
 
 
Millions
 
 
Billings to Affiliates:
 
 
 
 
 
Net Billings to PSE&G (A)
$
490

 
$
633

 
 
Billings from Affiliates:
 
 
 
 
 
Administrative Billings from Services (B)
$
45

 
$
45

 
 
 
 
 
 
 

 
 
 
 
 
 
 
 
As of
 
As of
 
 
Related-Party Transactions
March 31, 2020
 
December 31, 2019
 
 
 
Millions
 
 
Receivable from PSE&G (A)
$
284

 
$
307

 
 
Receivable from PSEG (C)
75

 
101

 
 
Accounts Receivable—Affiliated Companies
$
359

 
$
408

 
 
Payable to Services (B)
$
24

 
$
5

 
 
Accounts Payable—Affiliated Companies
$
24

 
$
5

 
 
Short-Term Loan to (from) Affiliate (E)
$
514

 
$
149

 
 
Working Capital Advances to Services (D)
$
17

 
$
17

 
 
Long-Term Accrued Taxes Payable 
$
113

 
$
115

 
 
 
 
 
 
 

(A)
PSE&G has entered into a requirements contract with PSEG Power under which PSEG Power provides the gas supply services needed to meet PSE&G’s BGSS and other contractual requirements. PSEG Power has also entered into contracts to supply energy, capacity and ancillary services to PSE&G through the BGS auction process and sells ZECs to PSE&G under the ZEC program. The rates in the BGS and BGSS contracts and for the ZEC sales are prescribed by the BPU. BGS and BGSS sales are billed and settled on a monthly basis. ZEC sales are billed on a monthly basis and settled annually following completion of each energy year. In addition, PSEG Power and PSE&G provide certain technical services for each other generally at cost in compliance with FERC and BPU affiliate rules.
(B)
Services provides and bills administrative services to PSE&G and PSEG Power at cost. In addition, PSE&G and PSEG Power have other payables to Services, including amounts related to certain common 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 NOLs and/or tax credits, the subsidiary shall receive payment for the tax savings from PSEG to the extent that PSEG is able to utilize those benefits.
(D)
PSE&G and PSEG Power have advanced working capital to Services. The amounts are included in Other Noncurrent Assets on PSE&G’s and PSEG Power’s Condensed Consolidated Balance Sheets.
(E)
PSEG 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.
Public Service Electric and Gas Company [Member]  
Related Party Transaction [Line Items]  
Related-Party Transactions Related-Party Transactions
The following discussion relates to intercompany transactions, which are eliminated during the PSEG consolidation process in accordance with GAAP.
PSE&G
The financial statements for PSE&G include transactions with related parties presented as follows:
 
 
 
 
 
 
 
 
Three Months Ended
 
 
 
March 31,
 
 
Related-Party Transactions
2020
 
2019
 
 
 
Millions
 
 
Billings from Affiliates:
 
 
 
 
 
Net Billings from PSEG Power (A)
$
490

 
$
633

 
 
Administrative Billings from Services (B)
78

 
75

 
 
Total Billings from Affiliates
$
568

 
$
708

 
 
 
 
 
 
 

 
 
 
 
 
 
 
 
As of
 
As of
 
 
Related-Party Transactions
March 31, 2020
 
December 31, 2019
 
 
 
Millions
 
 
Receivable from PSEG (C)
$
—

 
$
1

 
 
Payable to PSEG Power (A)
$
284

 
$
307

 
 
Payable to Services (B)
68

 
83

 
 
Payable to PSEG (C)
51

 
—

 
 
Accounts Payable—Affiliated Companies
$
403

 
$
390

 
 
Working Capital Advances to Services (D)
$
33

 
$
33

 
 
Long-Term Accrued Taxes Payable 
$
114

 
$
115

 
 
 
 
 
 
 

PSEG Power
The financial statements for PSEG Power include transactions with related parties presented as follows:
 
 
 
 
 
 
 
 
Three Months Ended
 
 
 
March 31,
 
 
Related-Party Transactions
2020
 
2019
 
 
 
Millions
 
 
Billings to Affiliates:
 
 
 
 
 
Net Billings to PSE&G (A)
$
490

 
$
633

 
 
Billings from Affiliates:
 
 
 
 
 
Administrative Billings from Services (B)
$
45

 
$
45

 
 
 
 
 
 
 

 
 
 
 
 
 
 
 
As of
 
As of
 
 
Related-Party Transactions
March 31, 2020
 
December 31, 2019
 
 
 
Millions
 
 
Receivable from PSE&G (A)
$
284

 
$
307

 
 
Receivable from PSEG (C)
75

 
101

 
 
Accounts Receivable—Affiliated Companies
$
359

 
$
408

 
 
Payable to Services (B)
$
24

 
$
5

 
 
Accounts Payable—Affiliated Companies
$
24

 
$
5

 
 
Short-Term Loan to (from) Affiliate (E)
$
514

 
$
149

 
 
Working Capital Advances to Services (D)
$
17

 
$
17

 
 
Long-Term Accrued Taxes Payable 
$
113

 
$
115

 
 
 
 
 
 
 

(A)
PSE&G has entered into a requirements contract with PSEG Power under which PSEG Power provides the gas supply services needed to meet PSE&G’s BGSS and other contractual requirements. PSEG Power has also entered into contracts to supply energy, capacity and ancillary services to PSE&G through the BGS auction process and sells ZECs to PSE&G under the ZEC program. The rates in the BGS and BGSS contracts and for the ZEC sales are prescribed by the BPU. BGS and BGSS sales are billed and settled on a monthly basis. ZEC sales are billed on a monthly basis and settled annually following completion of each energy year. In addition, PSEG Power and PSE&G provide certain technical services for each other generally at cost in compliance with FERC and BPU affiliate rules.
(B)
Services provides and bills administrative services to PSE&G and PSEG Power at cost. In addition, PSE&G and PSEG Power have other payables to Services, including amounts related to certain common 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 NOLs and/or tax credits, the subsidiary shall receive payment for the tax savings from PSEG to the extent that PSEG is able to utilize those benefits.
(D)
PSE&G and PSEG Power have advanced working capital to Services. The amounts are included in Other Noncurrent Assets on PSE&G’s and PSEG Power’s Condensed Consolidated Balance Sheets.
(E)
PSEG 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.
PSEG Power [Member]  
Related Party Transaction [Line Items]  
Related-Party Transactions Related-Party Transactions
The following discussion relates to intercompany transactions, which are eliminated during the PSEG consolidation process in accordance with GAAP.
PSE&G
The financial statements for PSE&G include transactions with related parties presented as follows:
 
 
 
 
 
 
 
 
Three Months Ended
 
 
 
March 31,
 
 
Related-Party Transactions
2020
 
2019
 
 
 
Millions
 
 
Billings from Affiliates:
 
 
 
 
 
Net Billings from PSEG Power (A)
$
490

 
$
633

 
 
Administrative Billings from Services (B)
78

 
75

 
 
Total Billings from Affiliates
$
568

 
$
708

 
 
 
 
 
 
 

 
 
 
 
 
 
 
 
As of
 
As of
 
 
Related-Party Transactions
March 31, 2020
 
December 31, 2019
 
 
 
Millions
 
 
Receivable from PSEG (C)
$
—

 
$
1

 
 
Payable to PSEG Power (A)
$
284

 
$
307

 
 
Payable to Services (B)
68

 
83

 
 
Payable to PSEG (C)
51

 
—

 
 
Accounts Payable—Affiliated Companies
$
403

 
$
390

 
 
Working Capital Advances to Services (D)
$
33

 
$
33

 
 
Long-Term Accrued Taxes Payable 
$
114

 
$
115

 
 
 
 
 
 
 

PSEG Power
The financial statements for PSEG Power include transactions with related parties presented as follows:
 
 
 
 
 
 
 
 
Three Months Ended
 
 
 
March 31,
 
 
Related-Party Transactions
2020
 
2019
 
 
 
Millions
 
 
Billings to Affiliates:
 
 
 
 
 
Net Billings to PSE&G (A)
$
490

 
$
633

 
 
Billings from Affiliates:
 
 
 
 
 
Administrative Billings from Services (B)
$
45

 
$
45

 
 
 
 
 
 
 

 
 
 
 
 
 
 
 
As of
 
As of
 
 
Related-Party Transactions
March 31, 2020
 
December 31, 2019
 
 
 
Millions
 
 
Receivable from PSE&G (A)
$
284

 
$
307

 
 
Receivable from PSEG (C)
75

 
101

 
 
Accounts Receivable—Affiliated Companies
$
359

 
$
408

 
 
Payable to Services (B)
$
24

 
$
5

 
 
Accounts Payable—Affiliated Companies
$
24

 
$
5

 
 
Short-Term Loan to (from) Affiliate (E)
$
514

 
$
149

 
 
Working Capital Advances to Services (D)
$
17

 
$
17

 
 
Long-Term Accrued Taxes Payable 
$
113

 
$
115

 
 
 
 
 
 
 

(A)
PSE&G has entered into a requirements contract with PSEG Power under which PSEG Power provides the gas supply services needed to meet PSE&G’s BGSS and other contractual requirements. PSEG Power has also entered into contracts to supply energy, capacity and ancillary services to PSE&G through the BGS auction process and sells ZECs to PSE&G under the ZEC program. The rates in the BGS and BGSS contracts and for the ZEC sales are prescribed by the BPU. BGS and BGSS sales are billed and settled on a monthly basis. ZEC sales are billed on a monthly basis and settled annually following completion of each energy year. In addition, PSEG Power and PSE&G provide certain technical services for each other generally at cost in compliance with FERC and BPU affiliate rules.
(B)
Services provides and bills administrative services to PSE&G and PSEG Power at cost. In addition, PSE&G and PSEG Power have other payables to Services, including amounts related to certain common 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 NOLs and/or tax credits, the subsidiary shall receive payment for the tax savings from PSEG to the extent that PSEG is able to utilize those benefits.
(D)
PSE&G and PSEG Power have advanced working capital to Services. The amounts are included in Other Noncurrent Assets on PSE&G’s and PSEG Power’s Condensed Consolidated Balance Sheets.
(E)
PSEG 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.
v3.20.1
Organization and Basis of Presentation (Policies)
 3 Months Ended
Mar. 31, 2020
Inventory, Policy [Policy Text Block]
Fuel Inventory
Fuel inventory at PSEG Power is valued at the lower of average cost or market and includes stored natural gas, coal, fuel oil and propane used to generate power and to satisfy obligations under PSEG Power’s gas supply contracts with PSE&G. The costs of fuel, including initial transportation costs, are included in inventory when purchased and charged to Energy Costs when used or sold.
In the first quarter of 2020, PSEG Power recorded a $20 million lower of cost or market (LOCOM) adjustment to its fuel oil inventory due to the significant decline in market pricing. Further downward adjustments may be required if the market price of oil continues to decline. However, PSEG Power may reverse the LOCOM adjustment in future quarters, limited to the adjustment recorded in the three months ended March 31, 2020, if the oil market recovers within the 2020 calendar year.
Property, Plant and Equipment, Policy [Policy Text Block]
Property, Plant and Equipment
PSEG Power capitalizes costs, including those related to its jointly-owned facilities that increase the capacity, improve or extend the life of an existing asset; represent a newly acquired or constructed asset; or represent the replacement of a retired asset. The cost of maintenance, repair and replacement of minor items of property is charged to appropriate expense accounts as incurred. Environmental costs are capitalized if the costs mitigate or prevent future environmental contamination or if the costs improve existing assets’ environmental safety or efficiency. All other environmental expenditures are expensed as incurred. PSEG Power also capitalizes spare parts that meet specific criteria. Capitalized spares are depreciated over the remaining lives of their associated assets.
In March 2020, the NRC approved Peach Bottom’s second license extension for both units. Concurrent with the license extensions, PSEG Power has extended the useful life of the asset to match the 80-year life expectation and reassessed the related Asset Retirement Cost (ARC) and Asset Retirement Obligation (ARO) assumptions. This resulted in an increase to the ARC asset and ARO liability of $74 million, primarily due to lower discount rates offset by a longer discounting period as a result of the Peach Bottom units’ longer expected useful life.
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 guidance 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, 2019.
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. 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, 2019.
Cash, Cash Equivalents and Restricted Cash, Policy [Policy Text Block]
Cash, Cash Equivalents and Restricted Cash
The following provides a reconciliation of cash, cash equivalents and restricted cash reported within the Condensed Consolidated Balance Sheets that sum to the total of the same such amounts for the beginning (December 31, 2019) and ending periods shown in the Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2020. Restricted cash consists primarily of deposits received related to various construction projects at PSE&G.
 
 
 
 
 
 
 
 
 
 
 
 
PSE&G
 
PSEG Power
 
Other (A)
 
Consolidated
 
 
 
Millions
 
 
As of December 31, 2019
 
 
 
 
 
 
 
 
 
Cash and Cash Equivalents
$
21

 
$
21

 
$
105

 
$
147

 
 
Restricted Cash in Other Current Assets
11

 
—

 
—

 
11

 
 
Restricted Cash in Other Noncurrent Assets
18

 
—

 
—

 
18

 
 
Cash, Cash Equivalents and Restricted Cash
$
50

 
$
21

 
$
105

 
$
176

 
 
As of March 31, 2020
 
 
 
 
 
 
 
 
 
Cash and Cash Equivalents
$
83

 
$
14

 
$
702

 
$
799

 
 
Restricted Cash in Other Current Assets
22

 
—

 
—

 
22

 
 
Restricted Cash in Other Noncurrent Assets
21

 
—

 
—

 
21

 
 
Cash, Cash Equivalents and Restricted Cash
$
126

 
$
14

 
$
702

 
$
842

 
 
 
 
 
 
 
 
 
 
 
(A)
Includes amounts applicable to PSEG (parent company), Energy Holdings and Services.
v3.20.1
Recent Accounting Standards (Policies)
 3 Months Ended
Mar. 31, 2020
New Accounting Pronouncements or Change in Accounting Principle [Line Items]  
New Accounting Standards
New Standards Issued and Adopted
Measurement of Credit Losses on Financial Instruments—Accounting Standards Update (ASU) 2016-13, updated by ASU 2018-19, 2019-04, 2019-05, 2019-11 and 2020-02
This accounting standard provides a new model for recognizing credit losses on financial assets. The new model requires entities to use an estimate of expected credit losses that will be recognized as an impairment allowance rather than a direct write-down of the amortized cost basis. The estimate of expected credit losses is to be based on past events, current conditions and supportable forecasts over a reasonable period. For purchased financial assets with credit deterioration, a similar model is to be used; however, the initial allowance will be added to the purchase price rather than reported as an allowance. Credit losses on available-for-sale debt securities will be measured in a manner similar to current GAAP; however, this standard requires those credit losses to be presented as an allowance, rather than a write-down. This new standard also requires additional disclosures of the allowance for credit losses by financial asset type, including disclosures of credit quality indicators for each class of financial asset disaggregated by year of origination.
The standard is effective for annual and interim periods beginning after December 15, 2019. PSEG adopted this standard on January 1, 2020 on a modified retrospective basis. Upon adoption, PSE&G recorded an increase of $8 million to its allowance for credit losses, offset by a $6 million increase to Regulatory and Other Assets, and a $2 million cumulative effect charge to Retained Earnings. See Note 3. Revenues. There was no impact from adoption of this standard on the financial statements of PSEG Power.
Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement—ASU 2018-13
This accounting standard modifies the disclosure requirements for fair value measurements. Certain current disclosure requirements relating to Level 3 fair value measurements, and transfers between Level 1 and Level 2 fair value measurements will be eliminated. The standard will also add certain other disclosure requirements for Level 3 fair value measurements.
The standard is effective for annual and interim periods beginning after December 15, 2019. Certain amendments in the standard will be applied prospectively for the most recent interim or annual period presented in the initial fiscal year of adoption. All other amendments of the standard will be applied retrospectively to all periods presented upon their effective date.
Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract—ASU 2018-15
This accounting standard aligns the capitalization requirements for implementation costs incurred in a hosting arrangement that is a service contract with capitalization requirements for implementation costs incurred to develop or obtain internal-use software, including hosting arrangements that include an internal-use software license. The standard follows the guidance in Accounting Standard Codification (ASC) 350—Intangibles—Goodwill and Other to determine which implementation costs to capitalize as an asset related to the service contract and which costs to expense. The standard requires the amortization of capitalized costs to be presented in Operation and Maintenance (O&M) Expense. In addition, the standard also adds presentation requirements for these costs in the statements of cash flows and financial position.
The standard is effective for annual and interim periods beginning after December 15, 2019. PSEG adopted this standard prospectively on January 1, 2020. PSEG, PSE&G and PSEG Power do not expect a material impact on their respective financial statements.
Targeted Improvements to Related Party Guidance for Variable Interest Entities (VIE)-ASU 2018-17
This accounting standard improves the VIE guidance in the area of decision-making fees. Consistent with how indirect interests held through related parties under common control are considered for determining whether a reporting entity must consolidate a VIE, indirect interests held through related parties in common control arrangements will be considered on a proportional basis for determining whether fees paid to decision makers and service providers are variable interests.
This standard is effective for annual and interim periods beginning after December 15, 2019. The standard is required to be applied retrospectively with a cumulative effect adjustment to Retained Earnings at the beginning of the earliest period presented. PSEG adopted this standard on January 1, 2020. Adoption of this standard did not have an impact on the financial statements of PSEG, PSE&G and PSEG Power.
Simplifying the Test for Goodwill Impairment—ASU 2017-04
This accounting standard requires an entity to perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. Additionally, an entity should consider income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable.
This standard requires application on a prospective basis and disclosure of the nature of and reason for the change in accounting principle upon transition. The new standard is effective for impairment tests for periods beginning January 1, 2020. PSEG early adopted this standard in the fourth quarter of 2019, and recorded an impairment loss of $16 million in O&M Expense.
Codification Improvements to Financial Instruments-ASU 2020-03
This accounting standard provides clarification of guidance for financial instruments and makes narrow scope amendments related to various issues. PSEG adopted this standard effective upon issuance. Adoption of this standard did not have an impact on the financial statements of PSEG, PSE&G and PSEG Power.
Facilitation of the Effects of Reference Rate Reform on Financial Reporting—ASU 2020-04
This accounting standard provides optional expedients and exceptions for applying GAAP to contract modifications and hedging relationships, subject to meeting certain criteria, that reference LIBOR or another reference rate expected to be discontinued. The standard is effective from its issuance date, March 12, 2020, through December 31, 2022.
PSEG adopted this standard effective upon issuance. Adoption of this standard did not have an impact on the financial statements of PSEG, PSE&G and PSEG Power.
New Standards Issued But Not Yet Adopted as of March 31, 2020
Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans—ASU 2018-14
This accounting standard modifies the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans, including the elimination of certain current disclosure requirements. Certain other disclosure requirements related to interest crediting rates have been added and certain clarifications were made to other disclosure requirements.
The standard is effective for fiscal years ending after December 15, 2020 and early adoption is permitted. Amendments in this standard will be applied on a retrospective basis to all periods presented. PSEG is currently analyzing the impact of this standard on its disclosures.
Simplifying the Accounting for Income Taxes—ASU 2019-12
This accounting standard simplifies the accounting for income taxes, including the elimination of certain exceptions to current requirements. Certain other requirements related to franchise taxes that are partially based on income, step-up of tax basis of goodwill and allocation of consolidated taxes to legal entities have been added and certain clarifications were made to other requirements.
The standard is effective for fiscal years beginning after December 15, 2020 and early adoption is permitted. Certain amendments in this standard will be applied on a retrospective basis to all periods presented. Certain other amendments will be applied on either a retrospective basis for all periods presented or a modified retrospective basis through a cumulative effect adjustment to Retained Earnings as of the beginning of the fiscal year of adoption. All other amendments will be applied on a prospective basis. PSEG is currently analyzing the impact of this standard on its financial statements.
Clarifying the Interactions between Investments-Equity Securities, Investments-Equity Method and Joint Ventures, and Derivatives and Hedging—ASU 2020-01
This accounting standard clarifies that an entity should consider transaction prices for purposes of measuring the fair value of certain equity securities immediately before applying or upon discontinuing the equity method. This accounting standard also clarifies that when accounting for contracts entered into to purchase equity securities, an entity should not consider whether, upon the settlement of the forward contract or exercise of the purchased option, the underlying securities would be accounted for under the equity method or the fair value option.
The standard is effective for fiscal years beginning after December 15, 2020. Amendments in this standard will be applied prospectively. PSEG is currently analyzing the impact of this standard on its financial statements.
v3.20.1
Revenues Revenues (Policies)
 3 Months Ended
Mar. 31, 2020
Revenue from Contract with Customer [Abstract]  
Revenue [Policy Text Block]
PSE&G
Revenues from Contracts with Customers
Electric and Gas Distribution and Transmission Revenues—PSE&G sells gas and electricity to customers under default commodity supply tariffs. PSE&G’s regulated electric and gas default commodity supply and distribution services are separate tariffs which are satisfied as the product(s) and/or services are delivered to the customer. The electric and gas commodity and delivery tariffs are recurring contracts in effect until modified through the regulatory approval process as appropriate. Revenue is recognized over time as the service is rendered to the customer. Included in PSE&G’s regulated revenues are unbilled electric and gas revenues which represent the estimated amount customers will be billed for services rendered from the most recent meter reading to the end of the respective accounting period.
PSE&G’s transmission revenues are earned under a separate tariff using a FERC-approved annual formula rate mechanism. The performance obligation of transmission service is satisfied and revenue is recognized as it is provided to the customer. The
formula rate mechanism provides for an annual filing of an estimated revenue requirement with rates effective January 1 of each year and a true-up to that estimate based on actual revenue requirements. The true-up mechanism is an alternative revenue which is outside the scope of revenue from contracts with customers.
Other Revenues from Contracts with Customers
Other revenues from contracts with customers, which are not a material source of PSE&G revenues, are generated primarily from appliance repair services and solar generation projects. The performance obligations under these contracts are satisfied and revenue is recognized as control of products is delivered or services are rendered.
Payment for services rendered and products transferred are typically due within 30 days of month of delivery.
Revenues Unrelated to Contracts with Customers
Other PSE&G revenues unrelated to contracts with customers are derived from alternative revenue mechanisms recorded pursuant to regulatory accounting guidance. These revenues, which include weather normalization, green energy program true-ups and transmission formula rate true-ups, are not a material source of PSE&G revenues.
PSEG Power
Revenues from Contracts with Customers
Electricity and Related Products—Wholesale and retail load contracts are executed in the different Independent System Operator (ISO) regions for the bundled supply of energy, capacity, renewable energy credits (RECs) and ancillary services representing PSEG Power’s performance obligations. Revenue for these contracts is recognized over time as the bundled service is provided to the customer. Transaction terms generally run from several months to three years. PSEG Power also sells to the ISOs energy and ancillary services which are separately transacted in the day-ahead or real-time energy markets. The energy and ancillary services performance obligations are typically satisfied over time as delivered and revenue is recognized accordingly. PSEG Power generally reports electricity sales and purchases conducted with those individual ISOs net on an hourly basis in either Operating Revenues or Energy Costs in its Condensed Consolidated Statements of Operations. The classification depends on the net hourly activity.
PSEG Power enters into capacity sales and capacity purchases through the ISOs. The transactions are reported on a net basis dependent on PSEG Power’s monthly net sale or purchase position through the individual ISOs. The performance obligations with the ISOs are satisfied over time upon delivery of the capacity and revenue is recognized accordingly. In addition to capacity sold through the ISOs, PSEG Power sells capacity through bilateral contracts and the related revenue is reported on a gross basis and recognized over time upon delivery of the capacity.
In April 2019, PSEG Power’s Salem 1, Salem 2 and Hope Creek nuclear plants were awarded Zero Emission Certificates (ZECs) by the BPU. These nuclear plants are expected to receive ZEC revenue for approximately three years, through May 2022, from the electric distribution companies (EDCs) in New Jersey. PSEG Power recognizes revenue when the units generate electricity, which is when the performance obligation is satisfied. These revenues are included in PJM Interconnection, L.L.C. (PJM) Sales in the following tables. See Note 4. Early Plant Retirements/Asset Dispositions for additional information.
Gas Contracts—PSEG Power sells wholesale natural gas, primarily through an index based full-requirements Basic Gas Supply Service (BGSS) contract with PSE&G to meet the gas supply requirements of PSE&G’s customers. The BGSS contract remains in effect unless terminated by either party with a two-year notice. The performance obligation is primarily delivery of gas which is satisfied over time. Revenue is recognized as gas is delivered. Based upon the availability of natural gas, storage and pipeline capacity beyond PSE&G’s daily needs, PSEG Power also sells gas and pipeline capacity to other counterparties under bilateral contracts. The performance obligation under these contracts is satisfied over time upon delivery of the gas or capacity, and revenue is recognized accordingly.
Other Revenues from Contracts with Customers
PSEG Power enters into bilateral contracts to sell solar power and solar RECs from its solar facilities. Contract terms range from 15 to 30 years. The performance obligations are generally solar power and RECs which are transferred to customers upon generation. Revenue is recognized upon generation of the solar power.
PSEG Power has entered into long-term contracts with LIPA for energy management and fuel procurement services. Revenue is recognized over time as services are rendered.
Revenues Unrelated to Contracts with Customers
PSEG Power’s revenues unrelated to contracts with customers include electric, gas and certain energy-related transactions accounted for in accordance with Derivatives and Hedging accounting guidance. See Note 13. Financial Risk Management
Activities for further discussion. PSEG Power is also a party to solar contracts that qualify as leases and are accounted for in accordance with lease accounting guidance.
Other
Revenues from Contracts with Customers
PSEG LI has a contract with LIPA which generates revenues. PSEG LI’s subsidiary, Long Island Electric Utility Servco, LLC (Servco) records costs which are recovered from LIPA and records the recovery of those costs as revenues when Servco is a principal in the transaction.
Revenues Unrelated to Contracts with Customers
v3.20.1
Organization and Basis of Presentation Organization and Basis of Presentation (Tables)
 3 Months Ended
Mar. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Cash, Cash Equivalents and Restricted Cash [Table Text Block]
The following provides a reconciliation of cash, cash equivalents and restricted cash reported within the Condensed Consolidated Balance Sheets that sum to the total of the same such amounts for the beginning (December 31, 2019) and ending periods shown in the Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2020. Restricted cash consists primarily of deposits received related to various construction projects at PSE&G.
 
 
 
 
 
 
 
 
 
 
 
 
PSE&G
 
PSEG Power
 
Other (A)
 
Consolidated
 
 
 
Millions
 
 
As of December 31, 2019
 
 
 
 
 
 
 
 
 
Cash and Cash Equivalents
$
21

 
$
21

 
$
105

 
$
147

 
 
Restricted Cash in Other Current Assets
11

 
—

 
—

 
11

 
 
Restricted Cash in Other Noncurrent Assets
18

 
—

 
—

 
18

 
 
Cash, Cash Equivalents and Restricted Cash
$
50

 
$
21

 
$
105

 
$
176

 
 
As of March 31, 2020
 
 
 
 
 
 
 
 
 
Cash and Cash Equivalents
$
83

 
$
14

 
$
702

 
$
799

 
 
Restricted Cash in Other Current Assets
22

 
—

 
—

 
22

 
 
Restricted Cash in Other Noncurrent Assets
21

 
—

 
—

 
21

 
 
Cash, Cash Equivalents and Restricted Cash
$
126

 
$
14

 
$
702

 
$
842

 
 
 
 
 
 
 
 
 
 
 
(A)
Includes amounts applicable to PSEG (parent company), Energy Holdings and Services.
v3.20.1
Revenues Revenues (Tables)
 3 Months Ended
Mar. 31, 2020
Revenue from Contract with Customer [Abstract]  
Disaggregation of Revenue [Table Text Block]
Disaggregation of Revenues
 
 
 
 
 
 
 
 
 
 
 
 
 
 
PSE&G
 
PSEG Power
 
Other 
 
Eliminations
 
Consolidated
 
 
 
Millions
 
 
Three Months Ended March 31, 2020
 
 
 
 
 
 
 
 
 
 
 
Revenues from Contracts with Customers
 
 
 
 
 
 
 
 
 
 
 
Electric Distribution
$
649

 
$
—

 
$
—

 
$
—

 
$
649

 
 
Gas Distribution
731

 
—

 
—

 
(2
)
 
729

 
 
Transmission
366

 
—

 
—

 
—

 
366

 
 
Electricity and Related Product Sales
 
 
 
 
 
 
 
 
 
 
 
PJM
 
 
 
 
 
 
 
 
 
 
 
Third-Party Sales
—

 
368

 
—

 
—

 
368

 
 
Sales to Affiliates
—

 
121

 
—

 
(121
)
 
—

 
 
New York ISO
—

 
25

 
—

 
—

 
25

 
 
ISO New England
—

 
48

 
—

 
—

 
48

 
 
Gas Sales
 
 
 
 
 
 
 
 
 
 
 
Third-Party Sales
—

 
29

 
—

 
—

 
29

 
 
Sales to Affiliates
—

 
354

 
—

 
(354
)
 
—

 
 
Other Revenues from Contracts with Customers (A)
82

 
10

 
144

 
(1
)
 
235

 
 
Total Revenues from Contracts with Customers
1,828

 
955

 
144

 
(478
)
 
2,449

 
 
Revenues Unrelated to Contracts with Customers (B)
55

 
265

 
12

 
—

 
332

 
 
Total Operating Revenues
$
1,883

 
$
1,220

 
$
156

 
$
(478
)
 
$
2,781

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
PSE&G
 
PSEG Power
 
Other 
 
Eliminations
 
Consolidated
 
 
 
Millions
 
 
Three Months Ended March 31, 2019
 
 
 
 
 
 
 
 
 
 
 
Revenues from Contracts with Customers
 
 
 
 
 
 
 
 
 
 
 
Electric Distribution
$
742

 
$
—

 
$
—

 
$
—

 
$
742

 
 
Gas Distribution
931

 
—

 
—

 
(3
)
 
928

 
 
Transmission
288

 
—

 
—

 
—

 
288

 
 
Electricity and Related Product Sales
 
 
 
 
 
 
 
 
 
 
 
 PJM
 
 
 
 
 
 
 
 
 
 
 
Third-Party Sales
—

 
515

 
—

 
—

 
515

 
 
         Sales to Affiliates
—

 
126

 
—

 
(126
)
 
—

 
 
New York ISO
—

 
41

 
—

 
—

 
41

 
 
ISO New England
—

 
21

 
—

 
—

 
21

 
 
Gas Sales
 
 
 
 
 
 
 
 
 
 
 
Third-Party Sales
—

 
47

 
—

 
—

 
47

 
 
Sales to Affiliates
—

 
479

 
—

 
(479
)
 
—

 
 
Other Revenues from Contracts with Customers (A)
64

 
10

 
131

 
(1
)
 
204

 
 
Total Revenues from Contracts with Customers
2,025

 
1,239

 
131

 
(609
)
 
2,786

 
 
Revenues Unrelated to Contracts with Customers (B)
7

 
177

 
10

 
—

 
194

 
 
Total Operating Revenues
$
2,032

 
$
1,416

 
$
141

 
$
(609
)
 
$
2,980

 
 
 
 
 
 
 
 
 
 
 
 
 
(A)
Includes primarily revenues from appliance repair services at PSE&G, solar power projects and energy management and fuel service contracts with LIPA at PSEG Power, and PSEG LI’s OSA with LIPA in Other.
(B)
Includes primarily alternative revenues at PSE&G, derivative contracts and lease contracts at PSEG Power, and lease contracts in Other.
Accounts Receivable, Allowance for Credit Loss [Table Text Block] The following provides a reconciliation of PSE&G’s allowance for credit losses for the three months ended March 31, 2020:
 
 
 
 
 
 
Three Months Ended March 31, 2020
 
 
 
Millions
 
 
Balance as of January 1, 2020 (A)
$
68

 
 
Utility Customer Accounts
 
 
 
     Provision for Expected Credit Losses
32

 
 
     Write-offs, net of Recoveries of $2 million
(20
)
 
 
Balance as of March 31, 2020
$
80

 
 
 
 
 
(A)
Includes an $8 million pre-tax increase at adoption of ASU 2016-13. See Note 2. Recent Accounting Standards.
Revenue, Capacity Auction Obligations [Table Text Block]
Capacity Revenues from the PJM Annual Base Residual and Incremental Auctions—The Base Residual Auction is generally conducted annually three years in advance of the operating period. The 2022/2023 auction has yet to be held and is not expected until the first half of 2021. PSEG Power expects to realize the following average capacity prices resulting from the base and incremental auctions, including unit specific bilateral contracts for previously cleared capacity obligations.
 
 
 
 
 
 
 
 
 
Delivery Year
 
$ per MW-Day
 
MW Cleared
 
 
June 2019 to May 2020
 
$116
 
8,300

 
 
June 2020 to May 2021
 
$179
 
7,300

 
 
June 2021 to May 2022
 
$182
 
6,900

 
 
 
 
 
 
 
 
Capacity Payments from the ISO New England Forward Capacity Market—The Forward Capacity Market (FCM) Auction is conducted annually three years in advance of the operating period. The table below includes PSEG Power’s cleared capacity in the FCM Auction for the Bridgeport Harbor Station 5 (BH5), which cleared the 2019/2020 auction at $231/MW-day for seven years, and the planned retirement of Bridgeport Harbor Station 3 (BH3) in May 2021. PSEG Power expects to realize the
following average capacity prices for capacity obligations to be satisfied resulting from the FCM auctions which have been completed through May 2024 and the seven-year rate lock for BH5 through May 2026:
 
 
 
 
 
 
 
 
 
Delivery Year
 
$ per MW-Day (A)
 
MW Cleared
 
 
June 2019 to May 2020
 
$231
 
1,330

 
 
June 2020 to May 2021
 
$195
 
1,330

 
 
June 2021 to May 2022
 
$192
 
950

 
 
June 2022 to May 2023
 
$179
 
950

 
 
June 2023 to May 2024
 
$141
 
1,060

 
 
June 2024 to May 2025
 
$231
 
480

 
 
June 2025 to May 2026
 
$231
 
480

 
 
 
 
 
 
 
 
v3.20.1
Leases Leases (Tables)
 3 Months Ended
Mar. 31, 2020
Leases [Abstract]  
Operating Lease, Lease Income
The following is the operating lease income for PSEG Power and Energy Holdings for the three months ended March 31, 2020 and 2019:
 
 
 
 
 
 
 
 
 
 
PSEG Power
 
Energy Holdings
 
Total
 
 
 
Millions
 
 
Operating Lease Income
 
 
 
 


 
 
Three Months Ended March 31, 2020
 
 
 
 
 
 
 
Fixed Lease Income
$
—

 
$
5

 
$
5

 
 
Variable Lease Income
5

 
—

 
5

 
 
Total Operating Lease Income
$
5

 
$
5

 
$
10

 
 
Three Months Ended March 31, 2019
 
 
 
 
 
 
 
Fixed Lease Income
$
—

 
$
5

 
$
5

 
 
Variable Lease Income
4

 
—

 
4

 
 
Total Operating Lease Income
$
4

 
$
5

 
$
9

 
 
 
 
 
 
 
 
 
v3.20.1
Financing Receivables (Tables)
 3 Months Ended
Mar. 31, 2020
Public Service Electric and Gas Company [Member]  
Schedule of Financial Receivables [Line Items]  
Schedule Of Credit Risk Profile Based On Payment Activity
 
 
 
 
 
 
 
 
Outstanding Loans by Class of Customer
 
 
 
 
As of
 
As of
 
 
Consumer Loans
 
March 31,
2020
 
December 31,
2019
 
 
 
 
Millions
 
 
Commercial/Industrial
 
$
154

 
$
156

 
 
Residential
 
8

 
8

 
 
Total
 
$
162

 
$
164

 
 
Current Portion (included in Accounts Receivable)
 
(26
)
 
(28
)
 
 
Noncurrent Portion (included in Long-Term Investments)
 
$
136

 
$
136

 
 
 
 
 
 
 
 
The solar loans originated under three Solar Loan Programs comprised as follows:
 
 
 
 
 
 
 
 
 
 
 
 
Programs
 
Balance as of March 31, 2020
 
Funding Provided
 
Residential Loan Term
 
Non-Residential Loan Term
 
 
 
 
Millions
 
 
 
 
 
 
 
 
Solar Loan I
 
$
26

 
prior to 2013
 
10 years
 
15 years
 
 
Solar Loan II
 
82

 
prior to 2015
 
10 years
 
15 years
 
 
Solar Loan III
 
54

 
largely funded as of December 31, 2019
 
10 years
 
10 years
 
 
Total
 
$
162

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

The average life of loans paid in full is seven years, which is lower than the loan terms of 10 to 15 years due to the generation of SRECs being greater than expected. Payments on all outstanding loans were current as of March 31, 2020 and have an average remaining life of approximately four years.
Energy Holdings [Member]  
Schedule of Financial Receivables [Line Items]  
Schedule Of Gross And Net Lease Investment The following table shows Energy Holdings’ gross and net lease investment as of March 31, 2020 and December 31, 2019.
 
 
 
 
 
 
 
 
As of
 
As of
 
 
 
March 31,
2020
 
December 31,
2019
 
 
 
Millions
 
 
Lease Receivables (net of Non-Recourse Debt)
$
470

 
$
498

 
 
Estimated Residual Value of Leased Assets
198

 
202

 
 
Total Investment in Rental Receivables
668

 
700

 
 
Unearned and Deferred Income
(197
)
 
(203
)
 
 
Gross Investments in Leases
471

 
497

 
 
Deferred Tax Liabilities
(325
)
 
(328
)
 
 
Net Investments in Leases
$
146

 
$
169

 
 
 
 
 
 
 
Schedule Of Lease Receivables, Net Of Nonrecourse Debt, Associated With Leveraged Lease Portfolio Based On Counterparty Credit Rating
The corresponding receivables associated with the lease portfolio are reflected as follows, net of non-recourse debt. The ratings in the table represent the ratings of the entities providing payment assurance to Energy Holdings.
 
 
 
 
 
 
 
 
Lease Receivables, Net of
Non-Recourse Debt
 
 
Counterparties’ Credit Rating Standard and Poor’s (S&P) as of March 31, 2020
 
 
 
 
 
As of March 31, 2020
 
 
 
 
Millions
 
 
AA
 
$
9

 
 
A-
 
54

 
 
BBB+ to BBB
 
237

 
 
BB
 
132

 
 
NR
 
38

 
 
Total
 
$
470

 
 
 
 
 
 
Schedule Of Assets Under Lease Receivables
A more detailed description of such assets under lease is presented in the following table.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Asset
 
Location
 
Gross
Investment
 
%
Owned
 
Total MW
 
Fuel
Type
 
Counterparties’
S&P Credit
Ratings
 
Counterparty
 
 
 
 
 
 
Millions
 
 
 
 
 
 
 
 
 
 
 
 
Powerton Station Units 5 and 6
 
IL
 
$
75

 
64
%
 
1,538

 
Coal
 
BB
 
NRG Energy, Inc.
 
 
Joliet Station Units 7 and 8
 
IL
 
$
85

 
64
%
 
1,036

 
Gas
 
BB
 
NRG Energy, Inc.
 
 
Shawville Station Units 1, 2, 3 and 4
 
PA
 
$
75

 
100
%
 
596

 
Gas
 
NR
 
Shawville Power, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
v3.20.1
Trust Investments (Tables)
 3 Months Ended
Mar. 31, 2020
Schedule of Trust Investments [Line Items]  
Fair Values And Gross Unrealized Gains And Losses For The Securities Held In The NDT Fund
The following tables show the fair values and gross unrealized gains and losses for the securities held in the NDT Fund.
 
 
 
 
 
 
 
 
 
 
 
 
As of March 31, 2020
 
 
 
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
 
 
 
Millions
 
 
Equity Securities
 
 
 
 
 
 
 
 
 
Domestic
$
445

 
$
147

 
$
(27
)
 
$
565

 
 
International
386

 
33

 
(48
)
 
371

 
 
Total Equity Securities
831

 
180

 
(75
)
 
936

 
 
Available-for-Sale Debt Securities
 
 
 
 
 
 
 
 
 
Government
526

 
39

 
(1
)
 
564

 
 
Corporate
525

 
13

 
(11
)
 
527

 
 
Total Available-for-Sale Debt Securities
1,051

 
52

 
(12
)
 
1,091

 
 
Total NDT Fund Investments
$
1,882

 
$
232

 
$
(87
)
 
$
2,027

 
 
 
 
 
 
 
 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
As of December 31, 2019
 
 
 
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
 
 
 
Millions
 
 
Equity Securities
 
 
 
 
 
 
 
 
 
Domestic
$
425

 
$
238

 
$
(4
)
 
$
659

 
 
International
400

 
103

 
(11
)
 
492

 
 
Total Equity Securities
825

 
341

 
(15
)
 
1,151

 
 
Available-for-Sale Debt Securities
 
 
 
 
 
 
 
 
 
Government
563

 
16

 
(2
)
 
577

 
 
Corporate
470

 
17

 
(1
)
 
486

 
 
Total Available-for-Sale Debt Securities
1,033

 
33

 
(3
)
 
1,063

 
 
Total NDT Fund Investments (A)
$
1,858

 
$
374

 
$
(18
)
 
$
2,214

 
 
 
 
 
 
 
 
 
 
 
Schedule Of Accounts Receivable And Accounts Payable in the NDT Funds
The 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
 
 
 
March 31,
2020
 
December 31,
2019
 
 
 
Millions
 
 
Accounts Receivable
$
20

 
$
11

 
 
Accounts Payable
$
30

 
$
11

 
 
 
 
 
 
 
Value Of Securities That Have Been In An Unrealized Loss Position For Less Than And Greater Than 12 Months
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 March 31, 2020
 
As of December 31, 2019
 
 
 
Less Than 12
Months
 
Greater Than 12
Months
 
Less Than 12
Months
 
Greater Than 12
Months
 
 
 
Fair
Value
 
Gross
Unrealized
Losses
 
Fair
Value
 
Gross
Unrealized
Losses
 
Fair
Value
 
Gross
Unrealized
Losses
 
Fair
Value
 
Gross
Unrealized
Losses
 
 
 
Millions
 
 
Equity Securities (A)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Domestic
$
120

 
$
(24
)
 
$
3

 
$
(3
)
 
$
21

 
$
(1
)
 
$
6

 
$
(3
)
 
 
International
146

 
(31
)
 
23

 
(17
)
 
28

 
(2
)
 
34

 
(9
)
 
 
Total Equity Securities
266

 
(55
)
 
26

 
(20
)
 
49

 
(3
)
 
40

 
(12
)
 
 
Available-for-Sale Debt Securities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Government (B)
19

 
(1
)
 
2

 
—

 
99

 
(2
)
 
30

 
—

 
 
Corporate (C)
222

 
(10
)
 
9

 
(1
)
 
49

 
—

 
12

 
(1
)
 
 
Total Available-for-Sale Debt Securities
241

 
(11
)
 
11

 
(1
)
 
148

 
(2
)
 
42

 
(1
)
 
 
NDT Trust Investments
$
507

 
$
(66
)
 
$
37

 
$
(21
)
 
$
197

 
$
(5
)
 
$
82

 
$
(13
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(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. Unrealized gains and losses on these securities are recorded in Net Income.
(B)
Debt Securities (Government)—Unrealized gains and losses on these securities are recorded in Accumulated Other Comprehensive Income (Loss). The unrealized losses on PSEG Power’s NDT investments in U.S. Treasury obligations and Federal Agency mortgage-backed securities were caused by interest rate changes. PSEG Power also has investments in municipal bonds. It is not expected that these securities will settle for less than their amortized cost. PSEG Power does not intend to sell these securities nor will it be more-likely-than-not required to sell before recovery of their amortized cost. PSEG Power did not recognize credit losses for U.S. Treasury obligations and Federal Agency mortgage-backed securities because these investments are guaranteed by the U.S. government or an agency of the U.S. government. PSEG Power did not recognize credit losses for municipal bonds because they are primarily investment grade securities.
(C)
Debt Securities (Corporate)—Unrealized gains and losses on these securities are recorded in Accumulated Other Comprehensive Income (Loss). Unrealized losses were due to market declines. It is not expected that these securities would settle for less than their amortized cost. PSEG Power does not intend to sell these securities nor will it be more-likely-than-not required to sell before recovery of their amortized cost.
Proceeds From The Sales Of And The Net Realized Gains On Securities In The NDT Funds And Rabbi Trusts
The proceeds from the sales of and the net gains (losses) on securities in the NDT Fund were:
 
 
 
 
 
 
 
 
Three Months Ended
 
 
 
March 31,
 
 
 
2020
 
2019
 
 
 
Millions
 
 
Proceeds from NDT Fund Sales (A)
$
555

 
$
453

 
 
Net Realized Gains (Losses) on NDT Fund
 
 
 
 
 
Gross Realized Gains
$
38

 
$
45

 
 
Gross Realized Losses
(34
)
 
(19
)
 
 
Net Realized Gains (Losses) on NDT Fund (B)
$
4

 
$
26

 
 
Unrealized Gains (Losses) on Equity Securities
(221
)
 
99

 
 
Impairment of Available-for-Sale Debt Securities (C)
(3
)
 
—

 
 
Net Gains (Losses) on NDT Fund Investments
$
(220
)
 
$
125

 
 
 
 
 
 
 
(A)Includes activity in accounts related to the liquidation of funds being transitioned to new managers.
(B)The cost of these securities was determined on the basis of specific identification.
Amount Of Available-For-Sale Debt Securities By Maturity Periods
The NDT Fund debt securities held as of March 31, 2020 had the following maturities:
 
 
 
 
 
 
Time Frame
 
Fair Value
 
 
 
 
Millions
 
 
Less than one year
 
$
17

 
 
1 - 5 years
 
278

 
 
6 - 10 years
 
183

 
 
11 - 15 years
 
63

 
 
16 - 20 years
 
73

 
 
Over 20 years
 
477

 
 
Total NDT Available-for-Sale Debt Securities
$
1,091

 
 
 
 
 
 
Rabbi Trust [Member]  
Schedule of Trust Investments [Line Items]  
Value Of Securities That Have Been In An Unrealized Loss Position For Less Than And Greater Than 12 Months
The following table shows the value of securities in the Rabbi Trust Fund that have been in an unrealized loss position for less than 12 months and greater than 12 months.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of March 31, 2020
 
As of December 31, 2019
 
 
 
Less Than 12
Months
 
Greater Than 12
Months
 
Less Than 12
Months
 
Greater Than 12
Months
 
 
 
Fair
Value
 
Gross
Unrealized
Losses
 
Fair
Value
 
Gross
Unrealized
Losses
 
Fair
Value
 
Gross
Unrealized
Losses
 
Fair
Value
 
Gross
Unrealized
Losses
 
 
 
Millions
 
 
Available-for-Sale Debt Securities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Government (A)
$
5

 
$
—

 
$
—

 
$
—

 
$
26

 
$
—

 
$
3

 
$
—

 
 
Corporate (B)
43

 
(3
)
 
1

 
—

 
11

 
—

 
2

 
—

 
 
Total Available-for-Sale Debt Securities
48

 
(3
)
 
1

 
—

 
37

 
—

 
5

 
—

 
 
Rabbi Trust Investments
$
48

 
$
(3
)
 
$
1

 
$
—

 
$
37

 
$
—

 
$
5

 
$
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

(A)
Debt Securities (Government)—Unrealized gains and losses on these securities are recorded in Accumulated Other Comprehensive Income (Loss). The unrealized losses on PSEG’s Rabbi Trust investments in U.S. Treasury obligations and Federal Agency mortgage-backed securities were caused by interest rate changes. PSEG also has investments in municipal bonds. It is not expected that these securities will settle for less than their amortized cost. PSEG does not intend to sell these securities nor will it be more-likely-than-not required to sell before recovery of their amortized cost. PSEG did not recognize credit losses for U.S. Treasury obligations and Federal Agency mortgage-backed securities because these investments are guaranteed by the U.S. government or an agency of the U.S. government. PSEG did not recognize credit losses for municipal bonds because they are primarily investment grade securities.
(B)
Debt Securities (Corporate)—Unrealized gains and losses on these securities are recorded in Accumulated Other Comprehensive Income (Loss). Unrealized losses were due to market declines. It is not expected that these securities would settle for less than their amortized cost. PSEG does not intend to sell these securities nor will it be more-likely-than-not required to sell before recovery of their amortized cost. PSEG did not recognize credit losses for these corporate bonds because they are primarily investment grade.
Securities Held In The Rabbi Trusts
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 March 31, 2020
 
 
 
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
 
 
 
Millions
 
 
Domestic Equity Securities
$
21

 
$
1

 
$
—

 
$
22

 
 
Available-for-Sale Debt Securities
 
 
 
 
 
 
 
 
 
Government
97

 
13

 
—

 
110

 
 
Corporate
111

 
4

 
(3
)
 
112

 
 
Total Available-for-Sale Debt Securities
208

 
17

 
(3
)
 
222

 
 
Total Rabbi Trust Investments
$
229

 
$
18

 
$
(3
)
 
$
244

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of December 31, 2019
 
 
 
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
 
 
 
Millions
 
 
Domestic Equity Securities
$
21

 
$
7

 
$
—

 
$
28

 
 
Available-for-Sale Debt Securities
 
 
 
 
 
 
 
 
 
Government
100

 
4

 
—

 
104

 
 
Corporate
107

 
7

 
—

 
114

 
 
Total Available-for-Sale Debt Securities
207

 
11

 
—

 
218

 
 
Total Rabbi Trust Investments
$
228

 
$
18

 
$
—

 
$
246

 
 
 
 
 
 
 
 
 
 
 
Schedule of Accounts Receivable and Accounts Payable in the Rabbi Trust Funds [Table Text Block]
The 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
 
 
 
March 31,
2020
 
December 31,
2019
 
 
 
Millions
 
 
Accounts Receivable
$
7

 
$
2

 
 
Accounts Payable
$
2

 
$
—

 
 
 
 
 
 
 
Proceeds From The Sales Of And The Net Realized Gains On Securities In The NDT Funds And Rabbi Trusts
The proceeds from the sales of and the net gains (losses) on securities in the Rabbi Trust Fund were:
 
 
 
 
 
 
 
 
Three Months Ended
 
 
 
March 31,
 
 
 
2020
 
2019
 
 
 
Millions
 
 
Proceeds from Rabbi Trust Sales (A)
$
54

 
$
44

 
 
Net Realized Gains (Losses) on Rabbi Trust:
 
 
 
 
 
Gross Realized Gains
$
5

 
$
1

 
 
Gross Realized Losses
(1
)
 
(1
)
 
 
Net Realized Gains (Losses) on Rabbi Trust (B)
4

 
—

 
 
Unrealized Gains (Losses) on Equity Securities
(5
)
 
3

 
 
Net Gains (Losses) on Rabbi Trust Investments
$
(1
)
 
$
3

 
 
 
 
 
 
 

(A)Includes activity in accounts related to the liquidation of funds being transitioned to new managers.
(B)The cost of these securities was determined on the basis of specific identification.
Amount Of Available-For-Sale Debt Securities By Maturity Periods
The Rabbi Trust debt securities held as of March 31, 2020 had the following maturities:
 
 
 
 
 
 
Time Frame
 
Fair Value
 
 
 
 
Millions
 
 
Less than one year
 
$
3

 
 
1 - 5 years
 
27

 
 
6 - 10 years
 
33

 
 
11 - 15 years
 
14

 
 
16 - 20 years
 
23

 
 
Over 20 years
 
122

 
 
Total Rabbi Trust Available-for-Sale Debt Securities
$
222

 
 
 
 
 
 
Fair Value Of The Rabbi Trusts
The fair value of the Rabbi Trust related to PSEG, PSE&G and PSEG Power are detailed as follows:
 
 
 
 
 
 
 
 
As of
 
As of
 
 
 
March 31,
2020
 
December 31,
2019
 
 
 
Millions
 
 
PSE&G
$
47

 
$
48

 
 
PSEG Power
61

 
62

 
 
Other
136

 
136

 
 
Total Rabbi Trust Investments
$
244

 
$
246

 
 
 
 
 
 
 
v3.20.1
Pension and OPEB (Tables)
 3 Months Ended
Mar. 31, 2020
Retirement Benefits [Abstract]  
Components Of Net Periodic Benefit Cost
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 for PSEG, excluding Servco. Amounts shown do not reflect the impacts of capitalization and co-owner allocations. Only the service cost component is eligible for capitalization, when applicable.
 
 
 
 
 
 
 
 
 
 
 
 
Pension Benefits
 
OPEB
 
 
 
Three Months Ended
 
Three Months Ended
 
 
 
March 31,
 
March 31,
 
 
 
2020
 
2019
 
2020
 
2019
 
 
 
Millions
 
 
Components of Net Periodic Benefit (Credits) Costs
 
 
 
 
 
 
 
 
 
Service Cost (included in O&M Expense)
$
35

 
$
29

 
$
2

 
$
2

 
 
Non-Service Components of Pension and OPEB (Credits) Costs
 
 
 
 
 
 
 
 
 
Interest Cost
48

 
58

 
9

 
11

 
 
Expected Return on Plan Assets
(111
)
 
(97
)
 
(10
)
 
(9
)
 
 
Amortization of Net
 
 
 
 
 
 
 
 
 
Prior Service Credit
(2
)
 
(5
)
 
(32
)
 
(32
)
 
 
Actuarial Loss
23

 
27

 
12

 
13

 
 
Non-Service Components of Pension and OPEB (Credits) Costs
(42
)
 
(17
)
 
(21
)
 
(17
)
 
 
Total Benefit (Credits) Costs
$
(7
)
 
$
12

 
$
(19
)
 
$
(15
)
 
 
 
 
 
 
 
 
 
 
 
Schedule Of Pension And OPEB Costs
Pension and OPEB costs for PSE&G, PSEG Power and PSEG’s other subsidiaries, excluding Servco, are detailed as follows:
 
 
 
 
 
 
 
 
 
 
 
 
Pension Benefits
 
OPEB
 
 
 
Three Months Ended
 
Three Months Ended
 
 
 
March 31,
 
March 31,
 
 
 
2020
 
2019
 
2020
 
2019
 
 
 
Millions
 
 
PSE&G
$
(7
)
 
$
7

 
$
(19
)
 
$
(16
)
 
 
PSEG Power
(1
)
 
3

 
—

 
1

 
 
Other
1

 
2

 
—

 
—

 
 
Total Benefit (Credits) Costs
$
(7
)
 
$
12

 
$
(19
)
 
$
(15
)
 
 
 
 
 
 
 
 
 
 
 
v3.20.1
Commitments and Contingent Liabilities (Tables)
 3 Months Ended
Mar. 31, 2020
PSEG Power [Member]  
Loss Contingencies [Line Items]  
Face Value Of Outstanding Guarantees, Current Exposure And Margin Positions
The following table shows the face value of PSEG Power’s outstanding guarantees, current exposure and margin positions as of March 31, 2020 and December 31, 2019.
 
 
 
 
 
 
 
 
As of
 
As of
 
 
 
March 31, 2020
 
December 31, 2019
 
 
 
Millions
 
 
Face Value of Outstanding Guarantees
$
1,856

 
$
1,854

 
 
Exposure under Current Guarantees
$
140

 
$
171

 
 
 
 
 
 
 
 
Letters of Credit Margin Posted
$
114

 
$
121

 
 
Letters of Credit Margin Received
$
94

 
$
29

 
 
 
 
 
 
 
 
Cash Deposited and Received:
 
 
 
 
 
Counterparty Cash Collateral Deposited
$
—

 
$
—

 
 
Counterparty Cash Collateral Received
$
(7
)
 
$
(4
)
 
 
   Net Broker Balance Deposited (Received)
$
(4
)
 
$
48

 
 
 
 
 
 
 
 
Additional Amounts Posted:
 
 
 
 
 
Other Letters of Credit
$
82

 
$
82

 
 
 
 
 
 
 
Total Minimum Purchase Commitments
As of March 31, 2020, the total minimum purchase requirements included in these commitments were as follows:
 
 
 
 
 
 
Fuel Type
 
PSEG Power’s Share of Commitments through 2024
 
 
 
 
Millions
 
 
Nuclear Fuel
 
 
 
 
Uranium
 
$
189

 
 
Enrichment
 
$
336

 
 
Fabrication
 
$
175

 
 
Natural Gas
 
$
1,214

 
 
 
 
 
 
Public Service Electric and Gas Company [Member]  
Loss Contingencies [Line Items]  
Contract For Anticipated BGS-Fixed Price Eligible Load
 
 
 
 
 
 
 
 
 
 
 
 
 
Auction Year
 
 
 
 
2017
 
2018
 
2019
 
2020
 
 
 
36-Month Terms Ending
May 2020
 
May 2021
 
May 2022
 
May 2023
(A) 
 
 
Load (MW)
2,800
 
2,900
 
2,800
 
2,800
 
 
 
$ per MWh
$90.78
 
$91.77
 
$98.04
 
$102.16
 
 
 
 
 
 
 
 
 
 
 
 
 

(A)
Prices set in the 2020 BGS auction will become effective on June 1, 2020 when the 2017 BGS auction agreements expire.
v3.20.1
Debt and Credit Facilities Debt and Credit Facilities (Tables)
 3 Months Ended
Mar. 31, 2020
Debt and Credit Facilities [Abstract]  
Schedule of Line of Credit Facilities [Table Text Block]
Each of the credit facilities is restricted as to availability and use to the specific companies as listed in the following table; however, if necessary, the PSEG facilities can also be used to support its subsidiaries’ liquidity needs.
The total credit facilities and available liquidity as of March 31, 2020 were as follows:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of March 31, 2020
 
 
 
 
 
 
Company/Facility
 
Total
Facility
 
Usage (D)
 
Available
Liquidity
 
Expiration
Date
 
Primary Purpose
 
 
 
 
Millions
 
 
 
 
 
 
PSEG
 
 
 
 
 
 
 
 
 
 
 
 
  5-year Credit Facilities (A)
 
$
1,500

 
$
806

 
$
694

 
Mar 2024
 
Commercial Paper Support/Funding/Letters of Credit
 
 
Total PSEG
 
$
1,500

 
$
806

 
$
694

 
 
 
 
 
 
PSE&G
 
 
 
 
 
 
 
 
 
 
 
 
  5-year Credit Facility (B)
 
$
600

 
$
17

 
$
583

 
Mar 2024
 
Commercial Paper Support/Funding/Letters of Credit
 
 
Total PSE&G
 
$
600

 
$
17

 
$
583

 
 
 
 
 
 
PSEG Power
 
 
 
 
 
 
 
 
 
 
 
 
  3-year Letter of Credit Facilities
 
$
200

 
$
114

 
$
86

 
Sept 2021
 
Letters of Credit
 
 
  5-year Credit Facilities (C)
 
1,900

 
40

 
1,860

 
Mar 2024
 
Funding/Letters of Credit
 
 
Total PSEG Power
 
$
2,100

 
$
154

 
$
1,946

 
 
 
 
 
 
Total
 
$
4,200

 
$
977

 
$
3,223

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

(A)
PSEG facilities will be reduced by $9 million in March 2022.
(B)
PSE&G facility will be reduced by $4 million in March 2022.
(C)
PSEG Power facilities will be reduced by $12 million in March 2022.
(D)
The primary use of PSEG’s and PSE&G’s credit facilities is to support their respective Commercial Paper Programs, under which as of March 31, 2020, PSEG had $762 million outstanding at a weighted average interest rate of 3.4%. PSE&G had no commercial paper outstanding under its Commercial Paper Program as of March 31, 2020.
Except as otherwise noted in the table above, in March 2020, PSEG, PSE&G and PSEG Power and their respective lenders agreed to extend the expiration dates on their credit agreements from March 2023 to March 2024.
Short-Term Loans
PSEG
In March 2020, PSEG entered into a $300 million, 364-day variable rate term loan agreement and in April 2020 it entered into two 364-day variable rate term loan agreements for $200 million and $300 million.
v3.20.1
Financial Risk Management Activities (Tables)
 3 Months Ended
Mar. 31, 2020
Derivative Instruments and Hedging Activities Disclosures [Line Items]  
Schedule Of Derivative Instruments Fair Value In Balance Sheets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of March 31, 2020
 
 
 
 
PSEG Power (A)
 
PSEG (A)
 
Consolidated
 
 
 
 
Not Designated
 
 
 
 
 
Cash Flow Hedges
 
 
 
 
Balance Sheet Location
 
Energy-
Related
Contracts
 
Netting
(B)
 
Total
PSEG Power
 
Interest
Rate
Swaps
 
Total
Derivatives
 
 
 
 
Millions
 
 
Derivative Contracts
 
 
 
 
 
 
 
 
 
 
 
 
Current Assets
 
$
878

 
$
(709
)
 
$
169

 
$
—

 
$
169

 
 
Noncurrent Assets
 
299

 
(230
)
 
69

 
—

 
69

 
 
Total Mark-to-Market Derivative Assets
 
$
1,177

 
$
(939
)
 
$
238

 
$
—

 
$
238

 
 
Derivative Contracts
 
 
 
 
 
 
 
 
 
 
 
 
Current Liabilities
 
$
(732
)
 
$
702

 
$
(30
)
 
$
(10
)
 
$
(40
)
 
 
Noncurrent Liabilities
 
(227
)
 
224

 
(3
)
 
—

 
(3
)
 
 
Total Mark-to-Market Derivative (Liabilities)
 
$
(959
)
 
$
926

 
$
(33
)
 
$
(10
)
 
$
(43
)
 
 
Total Net Mark-to-Market Derivative Assets (Liabilities)
 
$
218

 
$
(13
)
 
$
205

 
$
(10
)
 
$
195

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of December 31, 2019
 
 
 
 
PSEG Power (A)
 
PSEG (A)
 
Consolidated
 
 
 
 
Not Designated
 
 
 
 
 
Cash Flow Hedges
 
 
 
 
Balance Sheet Location
 
Energy-
Related
Contracts
 
Netting
(B)
 
Total
PSEG Power
 
Interest
Rate
Swaps
 
Total
Derivatives
 
 
 
 
Millions
 
 
Derivative Contracts
 
 
 
 
 
 
 
 
 
 
 
 
Current Assets
 
$
636

 
$
(523
)
 
$
113

 
$
—

 
$
113

 
 
Noncurrent Assets
 
163

 
(139
)
 
24

 
—

 
24

 
 
Total Mark-to-Market Derivative Assets
 
$
799

 
$
(662
)
 
$
137

 
$
—

 
$
137

 
 
Derivative Contracts
 
 
 
 
 
 
 
 
 
 
 
 
Current Liabilities
 
$
(553
)
 
$
522

 
$
(31
)
 
$
(5
)
 
$
(36
)
 
 
Noncurrent Liabilities
 
(139
)
 
138

 
(1
)
 
—

 
(1
)
 
 
Total Mark-to-Market Derivative (Liabilities)
 
$
(692
)
 
$
660

 
$
(32
)
 
$
(5
)
 
$
(37
)
 
 
Total Net Mark-to-Market Derivative Assets (Liabilities)
 
$
107

 
$
(2
)
 
$
105

 
$
(5
)
 
$
100

 
 
 
 
 
 
 
 
 
 
 
 
 
 
(A)
Substantially all of PSEG 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 March 31, 2020 and December 31, 2019.
(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) posted that has been allocated to derivative positions, where the right of offset exists, has been offset on the Condensed Consolidated Balance Sheets. As of March 31, 2020 and December 31, 2019, PSEG Power had net cash collateral (receipts) payments to counterparties of $(11) million and $44 million, respectively. Of these net cash collateral (receipts) payments, $(13) million as of March 31, 2020 and $(2) million as of December 31, 2019 were netted against the corresponding net derivative contract positions. Of the $(13) million as of March 31, 2020, $(7) million was netted against current assets and $(6) million was netted against noncurrent assets. Of the $(2) million as of December 31, 2019, $(1) million was netted against current assets and $(1) million was netted against noncurrent assets
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) [Table Text Block]
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 March 31, 2020 and 2019:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivatives in Cash Flow
Hedging Relationships
 
Amount of Pre-Tax
Gain (Loss)
Recognized in AOCI on Derivatives
 
Location of
Pre-Tax Gain (Loss) Reclassified from AOCI into Income
 
Amount of Pre-Tax
Gain (Loss)
Reclassified from AOCI into Income
 
 
 
Three Months Ended
 
 
 
Three Months Ended
 
 
 
March 31,
 
 
 
March 31,
 
 
 
2020
 
2019
 
 
 
2020
 
2019
 
 
 
 
Millions
 
 
 
Millions
 
 
PSEG
 
 
 
 
 
 
 
 
 
 
 
 
Interest Rate Swaps
 
$
(6
)
 
$
(5
)
 
Interest Expense
 
$
(2
)
 
$
—

 
 
Total PSEG
 
$
(6
)
 
$
(5
)
 
 
 
$
(2
)
 
$
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 

The effect of interest rate cash flow hedges is recorded in Interest Expense in PSEG’s Condensed Consolidated Statement of Operations. For the three months ended March 31, 2020, the amount of gain or loss on interest rate hedges reclassified from Accumulated Other Comprehensive Income (Loss) into income was $(1) million after-tax. The amount of gain or loss on interest rate hedges reclassified from Accumulated Other Comprehensive Income (Loss) into income for the three months ended March 31, 2019 was immaterial.
Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) [Table Text Block]
The following reconciles the Accumulated Other Comprehensive Income (Loss) for derivative activity included in the Accumulated Other Comprehensive Loss of PSEG on a pre-tax and after-tax basis.
 
 
 
 
 
 
 
 
Accumulated Other Comprehensive Income (Loss)
 
Pre-Tax
 
After-Tax
 
 
 
 
Millions
 
 
Balance as of December 31, 2018
 
$
(2
)
 
$
(1
)
 
 
Loss Recognized in AOCI
 
(23
)
 
(17
)
 
 
Less: Loss Reclassified into Income
 
4

 
3

 
 
Balance as of December 31, 2019
 
$
(21
)
 
$
(15
)
 
 
Loss Recognized in AOCI
 
(6
)
 
(4
)
 
 
Less: Loss Reclassified into Income
 
2

 
1

 
 
Balance as of March 31, 2020
 
$
(25
)
 
$
(18
)
 
 
 
 
 
 
 
 
Schedule Of Derivative Instruments Not Designated As Hedging Instruments And Impact On Results Of Operations
The following shows the effect on the Condensed Consolidated Statements of Operations of derivative instruments not designated as hedging instruments or as NPNS for the three months ended March 31, 2020 and 2019, respectively. PSEG Power’s derivative contracts reflected in this table include contracts to hedge the purchase and sale of electricity and natural gas, and the purchase of fuel. The table does not include contracts that PSEG Power has designated as NPNS, such as its BGS contracts and certain other energy supply contracts that it has with other utilities and companies with retail load.
 
 
 
 
 
 
 
 
 
Derivatives Not Designated as Hedges
 
Location of Pre-Tax
Gain (Loss)
Recognized in Income
on Derivatives
Pre-Tax Gain (Loss) Recognized in Income on Derivatives
 
 
 
 
 
Three Months Ended
 
 
 
 
 
March 31,
 
 
 
 
 
2020
 
2019
 
 
 
 
 
Millions
 
 
PSEG and PSEG Power
 
 
 
 
 
 
 
Energy-Related Contracts
 
Operating Revenues
$
231

 
$
139

 
 
Energy-Related Contracts
 
Energy Costs
(68
)
 
(13
)
 
 
Total PSEG and PSEG Power
 
 
$
163

 
$
126

 
 
 
 
 
 
 
 
 
Schedule Of Gross Volume, On Absolute Value Basis For Derivative Contracts
The following table summarizes the net notional volume purchases/(sales) of open derivative transactions by commodity as of March 31, 2020 and December 31, 2019.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Type
 
Notional
 
Total
 
PSEG
 
PSEG Power
 
PSE&G
 
 
 
 
 
 
Millions
 
 
As of March 31, 2020
 
 
 
 
 
 
 
 
 
 
 
 
Natural Gas
 
Dekatherm (Dth)
 
449

 
—

 
449

 
—

 
 
Electricity
 
MWh
 
(60
)
 
—

 
(60
)
 
—

 
 
Financial Transmission Rights (FTRs)
 
MWh
 
8

 
—

 
8

 
—

 
 
Interest Rate Swaps
 
U.S. Dollars
 
700

 
700

 
—

 
—

 
 
As of December 31, 2019
 
 
 
 
 
 
 
 
 
 
 
 
Natural Gas
 
Dth
 
341

 
—

 
341

 
—

 
 
Electricity
 
MWh
 
(62
)
 
—

 
(62
)
 
—

 
 
FTRs
 
MWh
 
13

 
—

 
13

 
—

 
 
Interest Rate Swaps
 
U.S. Dollars
 
700

 
700

 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
PSEG Power [Member]  
Derivative Instruments and Hedging Activities Disclosures [Line Items]  
Schedule Providing Credit Risk From Others, Net Of Collateral
The following table provides information on PSEG Power’s credit risk from wholesale counterparties, net of collateral, as of March 31, 2020. It further delineates that exposure by the credit rating of the counterparties, which is determined by the lowest rating from S&P, Moody’s or an internal scoring model. In addition, it provides guidance on the concentration of credit risk to individual counterparties and an indication of the quality of PSEG Power’s credit risk by credit rating of the counterparties.
As of March 31, 2020, 99% of the net credit exposure for PSEG Power’s wholesale 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, NPNS and non-derivatives).
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Rating
 
Current
Exposure
 
Securities Held as Collateral
 
Net
Exposure
 
Number of
Counterparties
>10%
 
Net Exposure of
Counterparties
>10%
 
 
 
 
 
Millions
 
 
 
Millions
 
 
 
Investment Grade
 
$
488

 
$
93

 
$
395

 
3

 
$
235

(A)
 
 
Non-Investment Grade
 
4

 
—

 
4

 
—

 
—

  
 
 
Total
 
$
492

 
$
93

 
$
399

 
3

 
$
235

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(A)
Represents net exposure of $137 million with PSE&G and $98 million with two non-affiliated counterparties.
As of March 31, 2020, collateral held from counterparties where PSEG Power had credit exposure included $6 million in cash collateral and $87 million in letters of credit.
As of March 31, 2020, PSEG Power had 141 active counterparties.
v3.20.1
Fair Value Measurements (Tables)
 3 Months Ended
Mar. 31, 2020
Fair Value Disclosures [Abstract]  
PSEG's, Power's And PSE&G's Respective Assets And (Liabilities) Measured At Fair Value On A Recurring Basis
The following tables present information about PSEG’s, PSE&G’s and PSEG Power’s respective assets and (liabilities) measured at fair value on a recurring basis as of March 31, 2020 and December 31, 2019, 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 PSE&G and PSEG Power.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Recurring Fair Value Measurements as of March 31, 2020
 
 
Description
 
Total
 

Netting (E)
 
Quoted Market Prices for Identical Assets
(Level 1)
 
Significant Other Observable Inputs (Level 2)
 
Significant Unobservable Inputs (Level 3)
 
 
 
 
Millions
 
 
PSEG
 
 
 
 
 
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
Cash Equivalents (A)
 
$
250

 
$
—

 
$
250

 
$
—

 
$
—

 
 
Derivative Contracts:
 
 
 
 
 
 
 
 
 
 
 
 
Energy-Related Contracts (B)
 
$
238

 
$
(939
)
 
$
24

 
$
1,132

 
$
21

 
 
NDT Fund (C)
 
 
 
 
 
 
 
 
 
 
 
 
Equity Securities
 
$
936

 
$
—

 
$
936

 
$
—

 
$
—

 
 
Debt Securities—U.S. Treasury
 
$
206

 
$
—

 
$
—

 
$
206

 
$
—

 
 
Debt Securities—Govt Other
 
$
358

 
$
—

 
$
—

 
$
358

 
$
—

 
 
Debt Securities—Corporate
 
$
527

 
$
—

 
$
—

 
$
527

 
$
—

 
 
Rabbi Trust (C)
 
 
 
 
 
 
 
 
 
 
 
 
Equity Securities
 
$
22

 
$
—

 
$
22

 
$
—

 
$
—

 
 
Debt Securities—U.S. Treasury
 
$
62

 
$
—

 
$
—

 
$
62

 
$
—

 
 
Debt Securities—Govt Other
 
$
48

 
$
—

 
$
—

 
$
48

 
$
—

 
 
Debt Securities—Corporate
 
$
112

 
$
—

 
$
—

 
$
112

 
$
—

 
 
Liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
Derivative Contracts:
 
 
 
 
 
 
 
 
 
 
 
 
Energy-Related Contracts (B)
 
$
(33
)
 
$
926

 
$
(73
)
 
$
(884
)
 
$
(2
)
 
 
Interest Rate Swaps (D)
 
$
(10
)
 
$
—

 
$
—

 
$
(10
)
 
$
—

 
 
PSE&G
 
 
 
 
 
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
Rabbi Trust (C)
 
 
 
 
 
 
 
 
 
 
 
 
Equity Securities
 
$
4

 
$
—

 
$
4

 
$
—

 
$
—

 
 
Debt Securities—U.S. Treasury
 
$
12

 
$
—

 
$
—

 
$
12

 
$
—

 
 
Debt Securities—Govt Other
 
$
9

 
$
—

 
$
—

 
$
9

 
$
—

 
 
Debt Securities—Corporate
 
$
22

 
$
—

 
$
—

 
$
22

 
$
—

 
 
PSEG Power
 

 
 
 
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
Derivative Contracts:
 
 
 
 
 
 
 
 
 
 
 
 
Energy-Related Contracts (B)
 
$
238

 
$
(939
)
 
$
24

 
$
1,132

 
$
21

 
 
NDT Fund (C)
 
 
 
 
 
 
 
 
 
 
 
 
Equity Securities
 
$
936

 
$
—

 
$
936

 
$
—

 
$
—

 
 
Debt Securities—U.S. Treasury
 
$
206

 
$
—

 
$
—

 
$
206

 
$
—

 
 
Debt Securities—Govt Other
 
$
358

 
$
—

 
$
—

 
$
358

 
$
—

 
 
Debt Securities—Corporate
 
$
527

 
$
—

 
$
—

 
$
527

 
$
—

 
 
Rabbi Trust (C)
 
 
 
 
 
 
 
 
 
 
 
 
Equity Securities
 
$
6

 
$
—

 
$
6

 
$
—

 
$
—

 
 
Debt Securities—U.S. Treasury
 
$
16

 
$
—

 
$
—

 
$
16

 
$
—

 
 
Debt Securities—Govt Other
 
$
12

 
$
—

 
$
—

 
$
12

 
$
—

 
 
Debt Securities—Corporate
 
$
27

 
$
—

 
$
—

 
$
27

 
$
—

 
 
Liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
Derivative Contracts:
 
 
 
 
 
 
 
 
 
 
 
 
Energy-Related Contracts (B)
 
$
(33
)
 
$
926

 
$
(73
)
 
$
(884
)
 
$
(2
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Recurring Fair Value Measurements as of December 31, 2019
 
 
Description
 
Total
 
Netting  (E)
 
Quoted Market Prices for Identical Assets
(Level 1)
 
Significant Other Observable Inputs (Level 2)
 
Significant Unobservable Inputs (Level 3)
 
 
 
 
Millions
 
 
PSEG
 
 
 
 
 
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
Cash Equivalents (A)
 
$
50

 
$
—

 
$
50

 
$
—

 
$
—

 
 
Derivative Contracts:
 
 
 
 
 
 
 
 
 
 
 
 
Energy-Related Contracts (B)
 
$
137

 
$
(662
)
 
$
19

 
$
770

 
$
10

 
 
NDT Fund (C)
 
 
 
 
 
 
 
 
 
 
 
 
Equity Securities
 
$
1,151

 
$
—

 
$
1,150

 
$
1

 
$
—

 
 
Debt Securities—U.S. Treasury
 
$
225

 
$
—

 
$
—

 
$
225

 
$
—

 
 
Debt Securities—Govt Other
 
$
352

 
$
—

 
$
—

 
$
352

 
$
—

 
 
Debt Securities—Corporate
 
$
486

 
$
—

 
$
—

 
$
486

 
$
—

 
 
Rabbi Trust (C)
 
 
 
 
 
 
 
 
 
 
 
 
Equity Securities
 
$
28

 
$
—

 
$
28

 
$
—

 
$
—

 
 
Debt Securities—U.S. Treasury
 
$
57

 
$
—

 
$
—

 
$
57

 
$
—

 
 
Debt Securities—Govt Other
 
$
47

 
$
—

 
$
—

 
$
47

 
$
—

 
 
Debt Securities—Corporate
 
$
114

 
$
—

 
$
—

 
$
114

 
$
—

 
 
Liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
Derivative Contracts:
 
 
 
 
 
 
 
 
 
 
 
 
Energy-Related Contracts (B)
 
$
(32
)
 
$
660

 
$
(43
)
 
$
(646
)
 
$
(3
)
 
 
   Interest Rate Swaps (D)
 
$
(5
)
 
$
—

 
$
—

 
$
(5
)
 
$
—

 
 
PSE&G
 
 
 
 
 
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
Rabbi Trust (C)
 
 
 
 
 
 
 
 
 
 
 
 
Equity Securities
 
$
5

 
$
—

 
$
5

 
$
—

 
$
—

 
 
Debt Securities—U.S. Treasury
 
$
11

 
$
—

 
$
—

 
$
11

 
$
—

 
 
Debt Securities—Govt Other
 
$
9

 
$
—

 
$
—

 
$
9

 
$
—

 
 
Debt Securities—Corporate
 
$
23

 
$
—

 
$
—

 
$
23

 
$
—

 
 
PSEG Power
 
 
 
 
 
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
Derivative Contracts:
 
 
 
 
 
 
 
 
 
 
 
 
Energy-Related Contracts (B)
 
$
137

 
$
(662
)
 
$
19

 
$
770

 
$
10

 
 
NDT Fund (C)
 
 
 
 
 
 
 
 
 
 
 
 
Equity Securities
 
$
1,151

 
$
—

 
$
1,150

 
$
1

 
$
—

 
 
Debt Securities—U.S. Treasury
 
$
225

 
$
—

 
$
—

 
$
225

 
$
—

 
 
Debt Securities—Govt Other
 
$
352

 
$
—

 
$
—

 
$
352

 
$
—

 
 
Debt Securities—Corporate
 
$
486

 
$
—

 
$
—

 
$
486

 
$
—

 
 
Rabbi Trust (C)
 
 
 
 
 
 
 
 
 
 
 
 
Equity Securities
 
$
8

 
$
—

 
$
8

 
$
—

 
$
—

 
 
Debt Securities—U.S. Treasury
 
$
14

 
$
—

 
$
—

 
$
14

 
$
—

 
 
Debt Securities—Govt Other
 
$
12

 
$
—

 
$
—

 
$
12

 
$
—

 
 
Debt Securities—Corporate
 
$
28

 
$
—

 
$
—

 
$
28

 
$
—

 
 
Liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
Derivative Contracts:
 
 
 
 
 
 
 
 
 
 
 
 
Energy-Related Contracts (B)
 
$
(32
)
 
$
660

 
$
(43
)
 
$
(646
)
 
$
(3
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 

(A)
Represents money market mutual funds.
(B)
Level 1—These contracts represent natural gas futures contracts executed on NYMEX, and are being valued solely on settled pricing inputs which come directly from the exchange.
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 settled prices from similar assets and liabilities from an exchange, such as NYMEX, ICE and Nodal Exchange, 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—Unobservable inputs are used for the valuation of certain contracts. See “Additional Information Regarding Level 3 Measurements” below for more information on the utilization of unobservable inputs.
(C)
As of December 31, 2019, the fair value measurement table excludes foreign currency of $2 million in the NDT Fund. The NDT Fund maintains investments in various equity and fixed income securities. The Rabbi Trust maintains investments in a Russell 3000 index fund and various fixed income securities. These securities are generally valued with prices that are either exchange provided (equity securities) or market transactions for comparable securities and/or broker quotes (fixed income securities).
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. Certain other equity securities in the NDT and Rabbi Trust Funds consist primarily of investments in money market funds which seek a high level of current income as is consistent with the preservation of capital and the maintenance of liquidity. To pursue its goals, the funds normally invest in diversified portfolios of high quality, short-term, dollar-denominated debt securities and government securities. The funds’ net asset value is priced and published daily. The Rabbi Trust’s Russell 3000 index fund is valued based on quoted prices in an active market and can be redeemed daily without restriction.
Level 2—NDT and Rabbi Trust fixed income securities include investment grade corporate bonds, collateralized mortgage obligations, asset-backed securities and certain government and U.S. Treasury obligations or Federal Agency asset-backed securities and municipal bonds 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. The preferred stocks are not actively traded on a daily basis and therefore, are also priced using an evaluated pricing methodology. Certain short-term investments are valued using observable market prices or market parameters such as time-to-maturity, coupon rate, quality rating and current yield.
(D)
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.
(E)
Represents the netting of fair value balances with the same counterparty (where the right of offset exists) and the application of collateral. See Note 13. Financial Risk Management Activities for additional detail.
Schedule of Quantitative Information About Level 3 Fair Value Measurements
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Quantitative Information About Level 3 Fair Value Measurements
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Significant
 
 
 
 
 
 
 
 
Level 3
 
Fair Value as of
 
Valuation
 
Unobservable
 
 
 
Arithmetic
 
 
Commodity
 
Position
 
March 31, 2020
 
Technique(s)
 
 Input
 
Range
 
Average
 
 
 
 
 
 
Assets
 
(Liabilities)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Millions
 
 
 
 
 
 
 
 
 
 
PSEG Power
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Electricity
 
Electric Load Contracts
 
$
21

 
$
—

 
Discounted Cash flow
 
Load Shaping Cost
 
0% to 10%
 
3%
 
 
Gas
 
Gas Physical Contracts
 
—

 
(2
)
 
Discounted Cash flow
 
Average Historical Basis
 
-70% to 0%
 
-22%
 
 
Total PSEG Power
 
$
21

 
$
(2
)
 
 
 
 
 
 
 
 
 
 
Total PSEG
 
 
 
$
21

 
$
(2
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Quantitative Information About Level 3 Fair Value Measurements
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Significant
 
 
 
 
 
 
 
 
Fair Value as of
 
Valuation
 
Unobservable
 
 
 
 
Commodity
 
Level 3 Position
 
December 31, 2019
 
Technique(s)
 
 Input
 
Range
 
 
 
 
 
 
Assets
 
(Liabilities)
 
 
 
 
 
 
 
 
 
 
 
 
Millions
 
 
 
 
 
 
 
 
PSEG Power
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Electricity
 
Electric Load Contracts
 
$
10

 
$
—

 
Discounted Cash flow
 
Historic Load Variability
 
0% to 10%
 
 
Gas
 
Gas Physical Contracts
 
—

 
(3
)
 
Discounted Cash flow
 
Average Historical Basis
 
-50% to 0%
 
 
Total PSEG Power
 
 
 
$
10

 
$
(3
)
 
 
 
 
 
 
 
 
Total PSEG
 
 
 
$
10

 
$
(3
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

As of March 31, 2020, 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 PSEG Power is a seller, an increase in the load variability would decrease the fair value. For gas-related contracts in cases where PSEG Power is a buyer, an increase in the average historical basis would increase the fair value.
Changes In Level 3 Assets And (Liabilities) Measured At Fair Value On A Recurring Basis
A reconciliation of the beginning and ending balances of Level 3 derivative contracts and securities for the three months ended March 31, 2020 and March 31, 2019, respectively, follows:
Changes in Level 3 Assets and (Liabilities) Measured at Fair Value on a Recurring Basis
for the Three Months Ended March 31, 2020
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended March 31, 2020
 
 
Description
 
Balance as of December 31, 2019
 
Total Gains or (Losses)
Realized/Unrealized Included in Income (A)
 
Purchases
(Sales)
 
Issuances/
Settlements
(B)
 
Transfers
In/Out (C)
 
Balance as of March 31, 2020
 
 
 
 
Millions
 
 
PSEG and PSEG Power
 
 
 
 
 
 
 
 
 
 
 
 
Net Derivative Assets (Liabilities)
 
$
7

 
$
13

 
$
—

 
$
(1
)
 
$
—

 
$
19

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Changes in Level 3 Assets and (Liabilities) Measured at Fair Value on a Recurring Basis
for the Three Months Ended March 31, 2019
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended March 31, 2019
 
 
Description
 
Balance as of December 31, 2018
 
Total Gains or (Losses)
Realized/Unrealized Included in Income (A)
 
Purchases
(Sales)
 
Issuances/
Settlements
(B)
 
Transfers
In/Out (C)
 
Balance as of March 31, 2019
 
 
 
 
Millions
 
 
PSEG and PSEG Power
 
 
 
 
 
 
 
 
 
 
 
 
Net Derivative Assets (Liabilities)
 
$
1

 
$
1

 
$
—

 
$
(4
)
 
$
—

 
$
(2
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(A)
Unrealized gains (losses) in the following table represent the change in derivative assets and liabilities still held as of March 31, 2020 and 2019.
.
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended March 31,
 
 
 
2020
 
2019
 
 
 
Total Gains (Losses)
 
Unrealized Gains (Losses)
 
Total Gains (Losses)
 
Unrealized Gains (Losses)
 
 
 
Millions
 
 
PSEG and PSEG Power
 
 
 
 
 
 
 
 
 
Operating Revenues
$
18

 
$
11

 
$
6

 
$
—

 
 
Energy Costs
(5
)
 
1

 
(5
)
 
(3
)
 
 
Total
$
13

 
$
12

 
$
1

 
$
(3
)
 
 
 
 
 
 
 
 
 
 
 

(B)
Includes settlements of $(1) million for the three months ended March 31, 2020 and $(4) million for the three months ended March 31, 2019.
(C)
There were no transfers into or out of Level 3 during the three months ended March 31, 2020 and 2019.
Schedule of 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 March 31, 2020 and December 31, 2019.
 
 
 
 
 
 
 
 
 
 
 
 
As of
 
As of
 
 
 
March 31, 2020
 
December 31, 2019
 
 
 
Carrying
Amount
 
Fair
Value
 
Carrying
Amount
 
Fair
Value
 
 
 
Millions
 
 
Long-Term Debt:
 
 
 
 
 
 
 
 
 
PSEG (A) (B)
$
2,441

 
$
2,423

 
$
2,441

 
$
2,479

 
 
PSE&G (B)
10,423

 
11,569

 
9,827

 
11,107

 
 
PSEG Power (B)
2,841

 
2,766

 
2,840

 
3,137

 
 
Total Long-Term Debt
$
15,705

 
$
16,758

 
$
15,108

 
$
16,723

 
 
 
 
 
 
 
 
 
 
 
(A)
Includes floating-rate term loans of $700 million at PSEG as of March 31, 2020 and December 31, 2019. The fair values of the term loan debt (Level 2 measurement) approximate the carrying value because the interest payments are based on LIBOR rates that are reset monthly and the debt is redeemable at face value by PSEG at any time.
(B)
Given that these bonds do not trade actively, the fair value amounts of taxable debt securities (primarily Level 2 measurements) are generally determined by a valuation model that is based on a conventional discounted cash flow methodology. The fair value amounts above do not represent the price at which the outstanding debt may be called for redemption by each issuer under their respective debt agreements.
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block]
Unrealized gains (losses) in the following table represent the change in derivative assets and liabilities still held as of March 31, 2020 and 2019.
.
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended March 31,
 
 
 
2020
 
2019
 
 
 
Total Gains (Losses)
 
Unrealized Gains (Losses)
 
Total Gains (Losses)
 
Unrealized Gains (Losses)
 
 
 
Millions
 
 
PSEG and PSEG Power
 
 
 
 
 
 
 
 
 
Operating Revenues
$
18

 
$
11

 
$
6

 
$
—

 
 
Energy Costs
(5
)
 
1

 
(5
)
 
(3
)
 
 
Total
$
13

 
$
12

 
$
1

 
$
(3
)
 
 
 
 
 
 
 
 
 
 
 
v3.20.1
Other Income (Deductions) (Tables)
 3 Months Ended
Mar. 31, 2020
Other Income and Expenses [Abstract]  
Schedule Of Other Income (Deductions)
 
 
 
 
 
 
 
 
 
 
 
 
PSE&G
 
PSEG Power
 
Other (A)
 
Consolidated
 
 
 
Millions
 
 
Three Months Ended March 31, 2020
 
 
 
 
 
 
 
 
 
NDT Fund Interest and Dividends
$
—

 
$
13

 
$
—

 
$
13

 
 
Allowance for Funds Used During Construction
21

 
—

 
—

 
21

 
 
Solar Loan Interest
4

 
—

 
—

 
4

 
 
Purchases of Tax Losses under New Jersey Technology Tax Benefit Transfer Program
—

 
(35
)
 
—

 
(35
)
 
 
Other
2

 
(1
)
 
—

 
1

 
 
  Total Other Income (Deductions)
$
27

 
$
(23
)
 
$
—

 
$
4

 
 
Three Months Ended March 31, 2019
 
 
 
 
 
 
 
 
 
NDT Fund Interest and Dividends
$
—

 
$
14

 
$
—

 
$
14

 
 
Allowance for Funds Used During Construction
13

 
—

 
—

 
13

 
 
Solar Loan Interest
4

 
—

 
—

 
4

 
 
Other
2

 
(1
)
 
1

 
2

 
 
Total Other Income (Deductions)
$
19

 
$
13

 
$
1

 
$
33

 
 
 
 
 
 
 
 
 
 
 

(A)
Other consists of activity at PSEG (as parent company), Energy Holdings, Services, PSEG LI and intercompany eliminations.
v3.20.1
Income Taxes (Tables)
 3 Months Ended
Mar. 31, 2020
Income Tax Disclosure [Abstract]  
Schedule Of Effective Tax Rates
PSEG’s, PSE&G’s and PSEG Power’s effective tax rates for the three months ended March 31, 2020 and 2019 were as follows:
 
 
 
 
 
 
 
 
Three Months Ended
 
 
 
March 31,
 
 
 
2020
 
2019
 
 
PSEG
8.9%
 
17.6%
 
 
PSE&G
19.9%
 
5.8%
 
 
PSEG Power
122.8%
 
29.5%
 
 
 
 
 
 
 
v3.20.1
Accumulated Other Comprehensive Income (Loss), Net of Tax (Tables)
 3 Months Ended
Mar. 31, 2020
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]  
Schedule of Changes in Accumulated Other Comprehensive Income by Component
 
 
 
 
 
 
 
 
 
 
 
 
PSEG
 
Three Months Ended March 31, 2020
 
 
Accumulated Other Comprehensive Income (Loss)
 
Cash Flow Hedges
 
Pension and OPEB Plans
 
Available-for-Sale Securities
 
Total
 
 
 
 
Millions
 
 
Balance as of December 31, 2019
 
$
(15
)
 
$
(499
)
 
$
25

 
$
(489
)
 
 
Current Period Other Comprehensive Income (Loss)
 
 
 
 
 
 
 
 
 
 
Other Comprehensive Income before Reclassifications
 
(4
)
 
—

 
14

 
10

 
 
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss)
 
1

 
3

 
(6
)
 
(2
)
 
 
Net Current Period Other Comprehensive Income (Loss)
 
(3
)
 
3

 
8

 
8

 
 
Balance as of March 31, 2020
 
$
(18
)
 
$
(496
)
 
$
33

 
$
(481
)
 
 
 
 
 
 
 
 
 
 
 
 
 
PSEG
 
Three Months Ended March 31, 2019
 
 
Accumulated Other Comprehensive Income (Loss)
 
Cash Flow Hedges
 
Pension and OPEB Plans
 
Available-for-Sale Securities
 
Total
 
 
 
 
Millions
 
 
Balance as of December 31, 2018
 
$
(1
)
 
$
(360
)
 
$
(16
)
 
$
(377
)
 
 
Cumulative Effect Adjustment to Reclassify Stranded Tax Effects Resulting in the Change in the Federal Corporate Income Tax to Retained Earnings
 
—

 
(81
)
 
—

 
(81
)
 
 
Current Period Other Comprehensive Income (Loss)
 
 
 
 
 
 
 
 
 
 
Other Comprehensive Income before Reclassifications
 
(4
)
 
(3
)
 
20

 
13

 
 
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss)
 
—

 
3

 
1

 
4

 
 
Net Current Period Other Comprehensive Income (Loss)
 
(4
)
 
—

 
21

 
17

 
 
Net Change in Accumulated Other Comprehensive Income (Loss)
 
(4
)
 
(81
)
 
21

 
(64
)
 
 
Balance as of March 31, 2019
 
$
(5
)
 
$
(441
)
 
$
5

 
$
(441
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
PSEG Power
 
Three Months Ended March 31, 2020
 
 
Accumulated Other Comprehensive Income (Loss)
 
Cash Flow Hedges
 
Pension and OPEB Plans
 
Available-for-Sale Securities
 
Total
 
 
 
 
Millions
 
 
Balance as of December 31, 2019
 
$
—

 
$
(420
)
 
$
19

 
$
(401
)
 
 
Current Period Other Comprehensive Income (Loss)
 
 
 
 
 
 
 
 
 
 
Other Comprehensive Income before Reclassifications
 
—

 
—

 
11

 
11

 
 
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss)
 
—

 
2

 
(4
)
 
(2
)
 
 
Net Current Period Other Comprehensive Income (Loss)
 
—

 
2

 
7

 
9

 
 
Balance as of March 31, 2020
 
$
—

 
$
(418
)
 
$
26

 
$
(392
)
 
 
 
 
 
 
 
 
 
 
 
 
 
PSEG Power
 
Three Months Ended March 31, 2019
 
 
Accumulated Other Comprehensive Income (Loss)
 
Cash Flow Hedges
 
Pension and OPEB Plans
 
Available-for-Sale Securities
 
Total
 
 
 
 
Millions
 
 
Balance as of December 31, 2018
 
$
—

 
$
(306
)
 
$
(13
)
 
$
(319
)
 
 
Cumulative Effect Adjustment to Reclassify Stranded Tax Effects Resulting in the Change in the Federal Corporate Income Tax to Retained Earnings
 
—

 
(69
)
 
—

 
(69
)
 
 
Current Period Other Comprehensive Income (Loss)
 
 
 
 
 
 
 
 
 
 
Other Comprehensive Income before Reclassifications
 
—

 
(3
)
 
15

 
12

 
 
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss)
 
—

 
3

 
1

 
4

 
 
Net Current Period Other Comprehensive Income (Loss)
 
—

 
—

 
16

 
16

 
 
Net Change in Accumulated Other Comprehensive Income (Loss)
 
—

 
(69
)
 
16

 
(53
)
 
 
Balance as of March 31, 2019
 
$
—

 
$
(375
)
 
$
3

 
$
(372
)
 
 
 
 
 
 
 
 
 
 
 
 
Reclassifications out of Accumulated Other Comprehensive Income
 
 
 
 
 
 
 
 
 
 
 
PSEG
 
 
 Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) to Income Statement
 
 
 
 
 
Three Months Ended
 
 
Description of Amounts Reclassified from Accumulated Other Comprehensive Income (Loss)
 
Location of Pre-Tax Amount In Statement of Operations
March 31, 2020
 
 
 
Pre-Tax Amount
 
Tax (Expense) Benefit
 
After-Tax Amount
 
 
 
 
 
Millions
 
 
Cash Flow Hedges
 
 
 
 
 
 
 
 
 
Interest Rate Swaps
 
Interest Expense
$
(2
)
 
$
1

 
$
(1
)
 
 
Total Cash Flow Hedges
 
 
(2
)
 
1

 
(1
)
 
 
Pension and OPEB Plans
 
 
 
 
 
 
 
Amortization of Prior Service (Cost) Credit
 
Non-Operating Pension and OPEB Credits (Costs)
6

 
(2
)
 
4

 
 
Amortization of Actuarial Loss
 
Non-Operating Pension and OPEB Credits (Costs)
(10
)
 
3

 
(7
)
 
 
Total Pension and OPEB Plans
(4
)
 
1

 
(3
)
 
 
Available-for-Sale Debt Securities
 
 
 
 
 
 
 
Realized Gains (Losses) and Impairments
 
Net Gains (Losses) on Trust Investments
9

 
(3
)
 
6

 
 
Total Available-for-Sale Debt Securities
9

 
(3
)
 
6

 
 
Total
 
 
$
3

 
$
(1
)
 
$
2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
PSEG
 
 
 Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) to Income Statement
 
 
 
 
 
Three Months Ended
 
 
Description of Amounts Reclassified from Accumulated Other Comprehensive Income (Loss)
 
Location of Pre-Tax Amount In Statement of Operations
March 31, 2019
 
 
 
Pre-Tax Amount
 
Tax (Expense) Benefit
 
After-Tax Amount
 
 
 
 
 
Millions
 
 
Pension and OPEB Plans
 
 
 
 
 
 
 
Amortization of Prior Service (Cost) Credit
 
Non-Operating Pension and OPEB Credits (Costs)
$
7

 
$
(2
)
 
$
5

 
 
Amortization of Actuarial Loss
 
Non-Operating Pension and OPEB Credits (Costs)
(12
)
 
4

 
(8
)
 
 
Total Pension and OPEB Plans
(5
)
 
2

 
(3
)
 
 
Available-for-Sale Debt Securities
 
 
 
 
 
 
 
Realized Gains (Losses)
 
Net Gains (Losses) on Trust Investments
(1
)
 
—

 
(1
)
 
 
Total Available-for-Sale Debt Securities
(1
)
 
—

 
(1
)
 
 
Total
 
 
$
(6
)
 
$
2

 
$
(4
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
PSEG Power
 
 
 Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) to Income Statement
 
 
 
 
 
Three Months Ended
 
 
Description of Amounts Reclassified from Accumulated Other Comprehensive Income (Loss)
 
Location of Pre-Tax Amount In Statement of Operations
March 31, 2020
 
 
 
Pre-Tax Amount
 
Tax (Expense) Benefit
 
After-Tax Amount
 
 
 
 
 
Millions
 
 
Pension and OPEB Plans
 
 
 
 
 
 
 
Amortization of Prior Service (Cost) Credit
 
Non-Operating Pension and OPEB Credits (Costs)
$
5

 
$
(1
)
 
$
4

 
 
Amortization of Actuarial Loss
 
Non-Operating Pension and OPEB Credits (Costs)
(8
)
 
2

 
(6
)
 
 
Total Pension and OPEB Plans
(3
)
 
1

 
(2
)
 
 
Available-for-Sale Debt Securities
 
 
 
 
 
 
 
Realized Gains (Losses) and Impairments
 
Net Gains (Losses) on Trust Investments
7

 
(3
)
 
4

 
 
Total Available-for-Sale Debt Securities
7

 
(3
)
 
4

 
 
Total
 
 
$
4

 
$
(2
)
 
$
2

 
 
 
 
 
 
 
 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
PSEG Power
 
 
 Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) to Income Statement
 
 
 
 
 
Three Months Ended
 
 
Description of Amounts Reclassified from Accumulated Other Comprehensive Income (Loss)
 
Location of Pre-Tax Amount In Statement of Operations
March 31, 2019
 
 
 
Pre-Tax Amount
 
Tax (Expense) Benefit
 
After-Tax Amount
 
 
 
 
 
Millions
 
 
Pension and OPEB Plans
 
 
 
 
 
 
 
Amortization of Prior Service (Cost) Credit
 
Non-Operating Pension and OPEB Credits (Costs)
$
6

 
$
(2
)
 
$
4

 
 
Amortization of Actuarial Loss
 
Non-Operating Pension and OPEB Credits (Costs)
(10
)
 
3

 
(7
)
 
 
Total Pension and OPEB Plans
(4
)
 
1

 
(3
)
 
 
Available-for-Sale Debt Securities
 
 
 
 
 
 
 
Realized Gains (Losses)
 
Net Gains (Losses) on Trust Investments
(1
)
 
—

 
(1
)
 
 
Total Available-for-Sale Debt Securities
(1
)
 
—

 
(1
)
 
 
Total
 
 
$
(5
)
 
$
1

 
$
(4
)
 
 
 
 
 
 
 
 
 
 
 
v3.20.1
Earnings Per Share (EPS) and Dividends (Tables)
 3 Months Ended
Mar. 31, 2020
Earnings Per Share [Abstract]  
Basic And Diluted Earnings Per Share Computation The following table shows the effect of these stock options, performance share units and restricted stock units on the weighted average number of shares outstanding used in calculating diluted EPS:
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended March 31,
 
 
 
2020
 
2019
 
 
 
Basic
 
Diluted
 
Basic
 
Diluted
 
 
EPS Numerator (Millions):
 
 
 
 
 
 
 
 
 
Net Income
$
448

 
$
448

 
$
700

 
$
700

 
 
EPS Denominator (Millions):
 
 
 
 
 
 
 
 
 
Weighted Average Common Shares Outstanding
504

 
504

 
504

 
504

 
 
Effect of Stock Based Compensation Awards
—

 
3

 
—

 
3

 
 
Total Shares
504

 
507

 
504

 
507

 
 
 
 
 
 
 
 
 
 
 
 
EPS
 
 
 
 
 
 
 
 
 
Net Income
$
0.89

 
$
0.88

 
$
1.39

 
$
1.38

 
 
 
 
 
 
 
 
 
 
 
Dividend Payments On Common Stock
Dividends
 
 
 
 
 
 
 
 
Three Months Ended
 
 
 
March 31,
 
 
Dividend Payments on Common Stock
2020
 
2019
 
 
Per Share
$
0.49

 
$
0.47

 
 
In Millions
$
248

 
$
238

 
 
 
 
 
 
 
On April 21, 2020, the PSEG Board approved a $0.49 per share common stock dividend for the second quarter of 2020.
v3.20.1
Financial Information By Business Segments (Tables)
 3 Months Ended
Mar. 31, 2020
Segment Reporting [Abstract]  
Financial Information By Business Segments
 
 
 
 
 
 
 
 
 
 
 
 
 
 
PSE&G
 
PSEG Power
 
Other (A)
 
Eliminations (B)
 
Consolidated Total
 
 
 
Millions
 
 
Three Months Ended March 31, 2020
 
 
 
 
 
 
 
 
 
 
 
Operating Revenues
$
1,883

 
$
1,220

 
$
156

 
$
(478
)
 
$
2,781

 
 
Net Income (Loss)
440

 
13

 
(5
)
 
—

 
448

 
 
Gross Additions to Long-Lived Assets
620

 
97

 
3

 
—

 
720

 
 
Three Months Ended March 31, 2019
 
 
 
 
 
 
 
 
 
 
 
Operating Revenues
$
2,032

 
$
1,416

 
$
141

 
$
(609
)
 
$
2,980

 
 
Net Income (Loss)
403

 
296

 
1

 
—

 
700

 
 
Gross Additions to Long-Lived Assets
625

 
167

 
3

 
—

 
795

 
 
As of March 31, 2020
 
 
 
 
 
 
 
 
 
 
 
Total Assets
$
33,627

 
$
12,847

 
$
3,296

 
$
(1,405
)
 
$
48,365

 
 
Investments in Equity Method Subsidiaries
$
—

 
$
68

 
$
1

 
$
—

 
$
69

 
 
As of December 31, 2019
 
 
 
 
 
 
 
 
 
 
 
Total Assets
$
33,266

 
$
12,805

 
$
2,715

 
$
(1,056
)
 
$
47,730

 
 
Investments in Equity Method Subsidiaries
$
—

 
$
66

 
$
1

 
$
—

 
$
67

 
 
 
 
 
 
 
 
 
 
 
 
 
(A)
Includes amounts applicable to Energy Holdings and PSEG LI, which are below the quantitative threshold for separate disclosure as reportable segments. Other also includes amounts applicable to PSEG (parent company) and Services.
(B)
Intercompany eliminations primarily relate to intercompany transactions between PSE&G and PSEG Power. For a further discussion of the intercompany transactions between PSE&G and PSEG Power, see Note 20. Related-Party Transactions.
v3.20.1
Related-Party Transactions (Tables)
 3 Months Ended
Mar. 31, 2020
Public Service Electric and Gas Company [Member]  
Related Party Transaction [Line Items]  
Schedule Of Related Party Transactions, Revenue
PSE&G
The financial statements for PSE&G include transactions with related parties presented as follows:
 
 
 
 
 
 
 
 
Three Months Ended
 
 
 
March 31,
 
 
Related-Party Transactions
2020
 
2019
 
 
 
Millions
 
 
Billings from Affiliates:
 
 
 
 
 
Net Billings from PSEG Power (A)
$
490

 
$
633

 
 
Administrative Billings from Services (B)
78

 
75

 
 
Total Billings from Affiliates
$
568

 
$
708

 
 
 
 
 
 
 
Schedule Of Related Party Transactions, Payables
 
 
 
 
 
 
 
 
As of
 
As of
 
 
Related-Party Transactions
March 31, 2020
 
December 31, 2019
 
 
 
Millions
 
 
Receivable from PSEG (C)
$
—

 
$
1

 
 
Payable to PSEG Power (A)
$
284

 
$
307

 
 
Payable to Services (B)
68

 
83

 
 
Payable to PSEG (C)
51

 
—

 
 
Accounts Payable—Affiliated Companies
$
403

 
$
390

 
 
Working Capital Advances to Services (D)
$
33

 
$
33

 
 
Long-Term Accrued Taxes Payable 
$
114

 
$
115

 
 
 
 
 
 
 
PSEG Power [Member]  
Related Party Transaction [Line Items]  
Schedule Of Related Party Transactions, Revenue
The financial statements for PSEG Power include transactions with related parties presented as follows:
 
 
 
 
 
 
 
 
Three Months Ended
 
 
 
March 31,
 
 
Related-Party Transactions
2020
 
2019
 
 
 
Millions
 
 
Billings to Affiliates:
 
 
 
 
 
Net Billings to PSE&G (A)
$
490

 
$
633

 
 
Billings from Affiliates:
 
 
 
 
 
Administrative Billings from Services (B)
$
45

 
$
45

 
 
 
 
 
 
 
Schedule Of Related Party Transactions, Receivables
 
 
 
 
 
 
 
 
As of
 
As of
 
 
Related-Party Transactions
March 31, 2020
 
December 31, 2019
 
 
 
Millions
 
 
Receivable from PSE&G (A)
$
284

 
$
307

 
 
Receivable from PSEG (C)
75

 
101

 
 
Accounts Receivable—Affiliated Companies
$
359

 
$
408

 
 
Payable to Services (B)
$
24

 
$
5

 
 
Accounts Payable—Affiliated Companies
$
24

 
$
5

 
 
Short-Term Loan to (from) Affiliate (E)
$
514

 
$
149

 
 
Working Capital Advances to Services (D)
$
17

 
$
17

 
 
Long-Term Accrued Taxes Payable 
$
113

 
$
115

 
 
 
 
 
 
 
v3.20.1
Organization and Basis of Presentation Organization and Basis of Presentation (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2020
Dec. 31, 2019
Mar. 31, 2019
Dec. 31, 2018
Cash and Cash Equivalents $ 799 $ 147    
Cash, Cash Equivalents and Restricted Cash 842 176 $ 96 $ 199
Public Service Electric and Gas Company [Member]        
Cash and Cash Equivalents 83 21    
Restricted Cash in Other Current Assets 22 11    
Restricted Cash in Other Noncurrent Assets 21 18    
Cash, Cash Equivalents and Restricted Cash 126 50 46 61
PSEG Power [Member]        
Cash and Cash Equivalents 14 21    
Restricted Cash in Other Current Assets 0 0    
Restricted Cash in Other Noncurrent Assets 0 0    
Cash, Cash Equivalents and Restricted Cash 14 21 $ 28 $ 22
Lower of Cost or Market adjustment 20      
Asset Retirement Obligation, Revision of Estimate 74      
Other Entities [Member]        
Cash and Cash Equivalents [1] 702 105    
Restricted Cash in Other Current Assets [1] 0 0    
Restricted Cash in Other Noncurrent Assets [1] 0 0    
Cash, Cash Equivalents and Restricted Cash [1] 702 105    
Other Current Assets [Member]        
Restricted Cash in Other Current Assets 22 11    
Other Noncurrent Assets [Member]        
Restricted Cash in Other Noncurrent Assets $ 21 $ 18    
[1]
Includes amounts applicable to PSEG (parent company), Energy Holdings and Services.
v3.20.1
Recent Accounting Standards Recent Accounting Standards (Details) - USD ($)
$ in Millions
Jan. 01, 2020
Dec. 31, 2019
Jan. 01, 2019
New Accounting Pronouncements or Change in Accounting Principle [Line Items]      
Cumulative Effect Adjustment   $ (2) $ 81
Public Service Electric and Gas Company [Member]      
New Accounting Pronouncements or Change in Accounting Principle [Line Items]      
Cumulative Effect Adjustment   $ (2)  
PSEG Power [Member]      
New Accounting Pronouncements or Change in Accounting Principle [Line Items]      
Cumulative Effect Adjustment     $ 69
Allowance for Credit Losses [Member] | Accounting Standards Update 2016-13 [Member] | Public Service Electric and Gas Company [Member]      
New Accounting Pronouncements or Change in Accounting Principle [Line Items]      
Cumulative Effect Adjustment $ 8    
Other Regulatory Assets (Liabilities) [Member] | Accounting Standards Update 2016-13 [Member] | Public Service Electric and Gas Company [Member]      
New Accounting Pronouncements or Change in Accounting Principle [Line Items]      
Cumulative Effect Adjustment 6    
Other Assets [Member] | Accounting Standards Update 2016-13 [Member] | Public Service Electric and Gas Company [Member]      
New Accounting Pronouncements or Change in Accounting Principle [Line Items]      
Cumulative Effect Adjustment $ 2    
v3.20.1
Revenues Revenues (Details)
$ in Millions
 3 Months Ended
Mar. 31, 2020
USD ($)
$ / mwd
MW
Mar. 31, 2019
USD ($)
Jan. 01, 2020
USD ($)
Dec. 31, 2019
USD ($)
Jan. 01, 2019
USD ($)
Revenues [Line Items]          
Cumulative Effect Adjustment       $ (2) $ 81
Revenue from Contract with Customers $ 2,449 $ 2,786      
Revenues Unrelated to Contracts with Customers [1] 332 194      
Total Operating Revenues 2,781 2,980      
Electric Distribution Contracts [Member]          
Revenues [Line Items]          
Revenue from Contract with Customers 649 742      
Gas Distribution [Member]          
Revenues [Line Items]          
Revenue from Contract with Customers 729 928      
Electric Transmission [Member]          
Revenues [Line Items]          
Revenue from Contract with Customers 366 288      
Electricity and Related Products [Member] | PJM [Member] | Third Party Sales [Member]          
Revenues [Line Items]          
Revenue from Contract with Customers 368 515      
Electricity and Related Products [Member] | PJM [Member] | Sales to Affiliates [Member]          
Revenues [Line Items]          
Revenue from Contract with Customers 0 0      
Electricity and Related Products [Member] | NY ISO [Member]          
Revenues [Line Items]          
Revenue from Contract with Customers 25 41      
Electricity and Related Products [Member] | ISO New England [Member]          
Revenues [Line Items]          
Revenue from Contract with Customers 48 21      
Gas Sales [Member] | Third Party Sales [Member]          
Revenues [Line Items]          
Revenue from Contract with Customers 29 47      
Gas Sales [Member] | Sales to Affiliates [Member]          
Revenues [Line Items]          
Revenue from Contract with Customers 0 0      
Other Revenues from Contracts with Customers [Member]          
Revenues [Line Items]          
Revenue from Contract with Customers [2] $ 235 204      
Public Service Electric and Gas Company [Member]          
Revenues [Line Items]          
Allowances percentage of accounts receivable 7.00%     6.00%  
Revenue from Contract with Customers $ 1,828 2,025      
Revenues Unrelated to Contracts with Customers [1] 55 7      
Total Operating Revenues 1,883 2,032      
Public Service Electric and Gas Company [Member] | Electric Distribution Contracts [Member]          
Revenues [Line Items]          
Revenue from Contract with Customers 649 742      
Public Service Electric and Gas Company [Member] | Gas Distribution [Member]          
Revenues [Line Items]          
Revenue from Contract with Customers 731 931      
Public Service Electric and Gas Company [Member] | Electric Transmission [Member]          
Revenues [Line Items]          
Revenue from Contract with Customers 366 288      
Public Service Electric and Gas Company [Member] | Electricity and Related Products [Member] | PJM [Member] | Third Party Sales [Member]          
Revenues [Line Items]          
Revenue from Contract with Customers 0 0      
Public Service Electric and Gas Company [Member] | Electricity and Related Products [Member] | PJM [Member] | Sales to Affiliates [Member]          
Revenues [Line Items]          
Revenue from Contract with Customers 0 0      
Public Service Electric and Gas Company [Member] | Electricity and Related Products [Member] | NY ISO [Member]          
Revenues [Line Items]          
Revenue from Contract with Customers 0 0      
Public Service Electric and Gas Company [Member] | Electricity and Related Products [Member] | ISO New England [Member]          
Revenues [Line Items]          
Revenue from Contract with Customers 0 0      
Public Service Electric and Gas Company [Member] | Gas Sales [Member] | Third Party Sales [Member]          
Revenues [Line Items]          
Revenue from Contract with Customers 0 0      
Public Service Electric and Gas Company [Member] | Gas Sales [Member] | Sales to Affiliates [Member]          
Revenues [Line Items]          
Revenue from Contract with Customers 0 0      
Public Service Electric and Gas Company [Member] | Other Revenues from Contracts with Customers [Member]          
Revenues [Line Items]          
Revenue from Contract with Customers [2] 82 64      
PSEG Power [Member]          
Revenues [Line Items]          
Revenue from Contract with Customers 955 1,239      
Revenues Unrelated to Contracts with Customers [1] 265 177      
Total Operating Revenues 1,220 1,416      
Anticipated Contract Revenues $ 161        
PSEG Power [Member] | PJM [Member] | June 2019 to May 2020 [Member]          
Revenues [Line Items]          
Dollars Per Megawatt-Day | $ / mwd 116        
Load (MW) | MW 8,300        
PSEG Power [Member] | PJM [Member] | June 2020 to May 2021 [Member]          
Revenues [Line Items]          
Dollars Per Megawatt-Day | $ / mwd 179        
Load (MW) | MW 7,300        
PSEG Power [Member] | PJM [Member] | June 2021 to May 2022 [Member]          
Revenues [Line Items]          
Dollars Per Megawatt-Day | $ / mwd 182        
Load (MW) | MW 6,900        
PSEG Power [Member] | ISO New England [Member] | June 2019 to May 2020 [Member]          
Revenues [Line Items]          
Dollars Per Megawatt-Day | $ / mwd 231        
Load (MW) | MW 1,330        
PSEG Power [Member] | ISO New England [Member] | June 2020 to May 2021 [Member]          
Revenues [Line Items]          
Dollars Per Megawatt-Day | $ / mwd 195        
Load (MW) | MW 1,330        
PSEG Power [Member] | ISO New England [Member] | June 2021 to May 2022 [Member]          
Revenues [Line Items]          
Dollars Per Megawatt-Day | $ / mwd 192        
Load (MW) | MW 950        
PSEG Power [Member] | ISO New England [Member] | June 2022 to May 2023 [Member]          
Revenues [Line Items]          
Dollars Per Megawatt-Day | $ / mwd 179        
Load (MW) | MW 950        
PSEG Power [Member] | ISO New England [Member] | June 2023 to May 2024 [Member]          
Revenues [Line Items]          
Dollars Per Megawatt-Day | $ / mwd 141        
Load (MW) | MW 1,060        
PSEG Power [Member] | ISO New England [Member] | June 2024 to May 2025 [Member]          
Revenues [Line Items]          
Dollars Per Megawatt-Day | $ / mwd 231        
Load (MW) | MW 480        
PSEG Power [Member] | ISO New England [Member] | June 2025 to May 2026 [Member]          
Revenues [Line Items]          
Dollars Per Megawatt-Day | $ / mwd 231        
Load (MW) | MW 480        
PSEG Power [Member] | Electric Distribution Contracts [Member]          
Revenues [Line Items]          
Revenue from Contract with Customers $ 0 0      
PSEG Power [Member] | Gas Distribution [Member]          
Revenues [Line Items]          
Revenue from Contract with Customers 0 0      
PSEG Power [Member] | Electric Transmission [Member]          
Revenues [Line Items]          
Revenue from Contract with Customers 0 0      
PSEG Power [Member] | Electricity and Related Products [Member] | PJM [Member] | Third Party Sales [Member]          
Revenues [Line Items]          
Revenue from Contract with Customers 368 515      
PSEG Power [Member] | Electricity and Related Products [Member] | PJM [Member] | Sales to Affiliates [Member]          
Revenues [Line Items]          
Revenue from Contract with Customers 121 126      
PSEG Power [Member] | Electricity and Related Products [Member] | NY ISO [Member]          
Revenues [Line Items]          
Revenue from Contract with Customers 25 41      
PSEG Power [Member] | Electricity and Related Products [Member] | ISO New England [Member]          
Revenues [Line Items]          
Revenue from Contract with Customers 48 21      
PSEG Power [Member] | Gas Sales [Member] | Third Party Sales [Member]          
Revenues [Line Items]          
Revenue from Contract with Customers 29 47      
PSEG Power [Member] | Gas Sales [Member] | Sales to Affiliates [Member]          
Revenues [Line Items]          
Revenue from Contract with Customers 354 479      
PSEG Power [Member] | Other Revenues from Contracts with Customers [Member]          
Revenues [Line Items]          
Revenue from Contract with Customers [2] 10 10      
Other [Member]          
Revenues [Line Items]          
Revenue from Contract with Customers 144 131      
Revenues Unrelated to Contracts with Customers [1] 12 10      
Total Operating Revenues 156 141      
Other [Member] | LIPA OSA contract fixed component [Member]          
Revenues [Line Items]          
Anticipated Contract Revenues 67        
Other [Member] | Electric Distribution Contracts [Member]          
Revenues [Line Items]          
Revenue from Contract with Customers 0 0      
Other [Member] | Gas Distribution [Member]          
Revenues [Line Items]          
Revenue from Contract with Customers 0 0      
Other [Member] | Electric Transmission [Member]          
Revenues [Line Items]          
Revenue from Contract with Customers 0 0      
Other [Member] | Electricity and Related Products [Member] | PJM [Member] | Third Party Sales [Member]          
Revenues [Line Items]          
Revenue from Contract with Customers 0 0      
Other [Member] | Electricity and Related Products [Member] | PJM [Member] | Sales to Affiliates [Member]          
Revenues [Line Items]          
Revenue from Contract with Customers 0 0      
Other [Member] | Electricity and Related Products [Member] | NY ISO [Member]          
Revenues [Line Items]          
Revenue from Contract with Customers 0 0      
Other [Member] | Electricity and Related Products [Member] | ISO New England [Member]          
Revenues [Line Items]          
Revenue from Contract with Customers 0 0      
Other [Member] | Gas Sales [Member] | Third Party Sales [Member]          
Revenues [Line Items]          
Revenue from Contract with Customers 0 0      
Other [Member] | Gas Sales [Member] | Sales to Affiliates [Member]          
Revenues [Line Items]          
Revenue from Contract with Customers 0 0      
Other [Member] | Other Revenues from Contracts with Customers [Member]          
Revenues [Line Items]          
Revenue from Contract with Customers [2] 144 131      
Eliminations [Member]          
Revenues [Line Items]          
Revenue from Contract with Customers (478) (609)      
Revenues Unrelated to Contracts with Customers [1] 0 0      
Total Operating Revenues (478) (609)      
Eliminations [Member] | Electric Distribution Contracts [Member]          
Revenues [Line Items]          
Revenue from Contract with Customers 0 0      
Eliminations [Member] | Gas Distribution [Member]          
Revenues [Line Items]          
Revenue from Contract with Customers (2) (3)      
Eliminations [Member] | Electric Transmission [Member]          
Revenues [Line Items]          
Revenue from Contract with Customers 0 0      
Eliminations [Member] | Electricity and Related Products [Member] | PJM [Member] | Third Party Sales [Member]          
Revenues [Line Items]          
Revenue from Contract with Customers 0 0      
Eliminations [Member] | Electricity and Related Products [Member] | PJM [Member] | Sales to Affiliates [Member]          
Revenues [Line Items]          
Revenue from Contract with Customers (121) (126)      
Eliminations [Member] | Electricity and Related Products [Member] | NY ISO [Member]          
Revenues [Line Items]          
Revenue from Contract with Customers 0 0      
Eliminations [Member] | Electricity and Related Products [Member] | ISO New England [Member]          
Revenues [Line Items]          
Revenue from Contract with Customers 0 0      
Eliminations [Member] | Gas Sales [Member] | Third Party Sales [Member]          
Revenues [Line Items]          
Revenue from Contract with Customers 0 0      
Eliminations [Member] | Gas Sales [Member] | Sales to Affiliates [Member]          
Revenues [Line Items]          
Revenue from Contract with Customers (354) (479)      
Eliminations [Member] | Other Revenues from Contracts with Customers [Member]          
Revenues [Line Items]          
Revenue from Contract with Customers [2] (1) (1)      
Public Service Electric and Gas Company [Member]          
Revenues [Line Items]          
Accounts Receivable, Allowance for Credit Loss, Recovery 2        
Cumulative Effect Adjustment       $ (2)  
Accounts Receivable and Unbilled Revenues, Allowance for Credit Losses 80   $ 68    
Provision for Other Credit Losses 32        
Accounts Receivable, Allowance for Credit Loss, Writeoff (20)        
Total Operating Revenues $ 1,883 $ 2,032      
Allowance for Credit Losses [Member] | Accounting Standards Update 2016-13 [Member] | Public Service Electric and Gas Company [Member]          
Revenues [Line Items]          
Cumulative Effect Adjustment     $ 8    
[1] Includes primarily alternative revenues at PSE&G, derivative contracts and lease contracts at PSEG Power, and lease contracts in Other.
[2] Includes primarily revenues from appliance repair services at PSE&G, solar power projects and energy management and fuel service contracts with LIPA at PSEG Power, and PSEG LI’s OSA with LIPA in Other.
v3.20.1
Early Plant Retirements/Asset Dispositions Early Plant Retirements/Asset Dispositions (Details) - USD ($)
 3 Months Ended
Mar. 31, 2020
Dec. 31, 2019
Early Plant Retirements/Asset Dispositions [Line Items]    
Assets Held-for-sale $ 28,000,000 $ 30,000,000
PSEG Power [Member]    
Early Plant Retirements/Asset Dispositions [Line Items]    
ZEC Charge per kwh 0.004  
ZEC Charge per MWh 10  
Assets Held-for-sale $ 28,000,000 $ 28,000,000
v3.20.1
Variable Interest Entities (VIEs) (Detail) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Variable Interest Entity [Line Items]    
Operating Revenues $ 2,781 $ 2,980
Operation and Maintenance 754 756
Long Island ServCo [Member]    
Variable Interest Entity [Line Items]    
Operating Revenues 127 115
Operation and Maintenance $ 127 $ 115
v3.20.1
Rate Filings (Details)
$ in Millions
 1 Months Ended
Apr. 30, 2020
USD ($)
Subsequent Event [Member] | Transition Renewable Incentive Certificates [Member] | Public Service Electric and Gas Company [Member]  
Regulatory Assets And Liabilities [Line Items]  
Public Utilities, Requested Rate Increase (Decrease), Amount $ 23
v3.20.1
Leases Operating Lease Income (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Operating Lease Income    
Fixed Lease Income $ 5 $ 5
Variable Lease Income 5 4
Total Operating Lease Income 10 9
PSEG Power [Member]    
Operating Lease Income    
Fixed Lease Income 0 0
Variable Lease Income 5 4
Total Operating Lease Income 5 4
Energy Holdings | Subsidiaries    
Operating Lease Income    
Fixed Lease Income 5 5
Variable Lease Income 0 0
Total Operating Lease Income $ 5 $ 5
v3.20.1
Financing Receivables (Outstanding Loans by Class of Customer) (Detail) - Public Service Electric and Gas Company [Member] - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2020
Dec. 31, 2019
Concentration Risk [Line Items]    
Average Loan Repayment Period 7 years  
Outstanding Loans by Class of Customer $ 162 $ 164
Current Portion of Outstanding Loans 26 28
Noncurrent Portion of Outstanding Loans $ 136 136
Average Loan Remaining Repayment Period 4 years  
Commercial/Industrial [Member]    
Concentration Risk [Line Items]    
Outstanding Loans by Class of Customer $ 154 156
Residential [Member]    
Concentration Risk [Line Items]    
Outstanding Loans by Class of Customer 8 $ 8
Solar Loan I [Member]    
Concentration Risk [Line Items]    
Outstanding Loans by Class of Customer $ 26  
Solar Loan I [Member] | Commercial/Industrial [Member]    
Concentration Risk [Line Items]    
Loan Receivable, Term 15 years  
Solar Loan I [Member] | Residential [Member]    
Concentration Risk [Line Items]    
Loan Receivable, Term 10 years  
Solar Loan II [Member]    
Concentration Risk [Line Items]    
Outstanding Loans by Class of Customer $ 82  
Solar Loan II [Member] | Commercial/Industrial [Member]    
Concentration Risk [Line Items]    
Loan Receivable, Term 15 years  
Solar Loan II [Member] | Residential [Member]    
Concentration Risk [Line Items]    
Loan Receivable, Term 10 years  
Solar Loan III [Member]    
Concentration Risk [Line Items]    
Outstanding Loans by Class of Customer $ 54  
Solar Loan III [Member] | Commercial/Industrial [Member]    
Concentration Risk [Line Items]    
Loan Receivable, Term 10 years  
Solar Loan III [Member] | Residential [Member]    
Concentration Risk [Line Items]    
Loan Receivable, Term 10 years  
Minimum [Member]    
Concentration Risk [Line Items]    
Loan Receivable, Term 10 years  
Maximum [Member]    
Concentration Risk [Line Items]    
Loan Receivable, Term 15 years  
v3.20.1
Financing Receivables (Gross And Net Lease Investment) (Detail) - Energy Holdings [Member] - USD ($)
$ in Millions
Mar. 31, 2020
Dec. 31, 2019
Schedule of Financial Receivables [Line Items]    
Lease Receivables (net of Non-Recourse Debt) $ 470 $ 498
Estimated Residual Value of Leased Assets 198 202
Total Investment in Rental Receivables 668 700
Unearned and Deferred Income (197) (203)
Gross Investments in Leases 471 497
Deferred Tax Liabilities (325) (328)
Net Investments in Leases $ 146 $ 169
v3.20.1
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 ($)
$ in Millions
Mar. 31, 2020
Dec. 31, 2019
Schedule of Financial Receivables [Line Items]    
Lease Receivables (net of Non-Recourse Debt) $ 470 $ 498
Standard & Poor's, AA Rating [Member]    
Schedule of Financial Receivables [Line Items]    
Lease Receivables (net of Non-Recourse Debt) 9  
Standard & Poor's, A- Rating [Member]    
Schedule of Financial Receivables [Line Items]    
Lease Receivables (net of Non-Recourse Debt) 54  
Standard & Poor's, BBB plus - BBB - Rating [Member]    
Schedule of Financial Receivables [Line Items]    
Lease Receivables (net of Non-Recourse Debt) 237  
Standard & Poor's, BB Rating [Member]    
Schedule of Financial Receivables [Line Items]    
Lease Receivables (net of Non-Recourse Debt) 132  
Not Rated [Member]    
Schedule of Financial Receivables [Line Items]    
Lease Receivables (net of Non-Recourse Debt) $ 38  
v3.20.1
Financing Receivables (Narrative) (Detail)
$ in Millions
 3 Months Ended
Mar. 31, 2020
USD ($)
Schedule of Financial Receivables [Line Items]  
Lease investment with non-investment grade counterparties, gross $ 235
Lease investment with non-investment grade counterparties, net of deferred taxes $ (24)
Powerton Station [Member]  
Schedule of Financial Receivables [Line Items]  
Counterparties’ S&P Credit Ratings BB
v3.20.1
Financing Receivables (Schedule Of Assets Under Lease Receivables) (Detail)
$ in Millions
 3 Months Ended
Mar. 31, 2020
USD ($)
MW
Powerton Station Units 5 And 6 [Member]  
Schedule of Financial Receivables [Line Items]  
Location IL
Gross Investment | $ $ 75
% Owned 64.00%
Total MW | MW 1,538
Fuel Type Coal
Counterparties’ S&P Credit Ratings BB
Counterparty NRG Energy, Inc.
Joliet Station Units 7 And 8 [Member]  
Schedule of Financial Receivables [Line Items]  
Location IL
Gross Investment | $ $ 85
% Owned 64.00%
Total MW | MW 1,036
Fuel Type Gas
Counterparties’ S&P Credit Ratings BB
Counterparty NRG Energy, Inc.
Shawville Station Units 1, 2, 3 And 4 [Member]  
Schedule of Financial Receivables [Line Items]  
Location PA
Gross Investment | $ $ 75
% Owned 100.00%
Total MW | MW 596
Fuel Type Gas
Counterparties’ S&P Credit Ratings NR
Counterparty Shawville Power, LLC
v3.20.1
Trust Investments (Fair Values And Gross Unrealized Gains And Losses For The Securities Held) (Detail) - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Dec. 31, 2019
Schedule of Trust Investments [Line Items]      
Net Gains (Losses) on Trust Investments $ (221) $ 128  
PSEG Power [Member]      
Schedule of Trust Investments [Line Items]      
Net Gains (Losses) on Trust Investments (220) 126  
Nuclear Decommissioning Trust (NDT) Fund [Member] | PSEG Power [Member]      
Schedule of Trust Investments [Line Items]      
Proceeds from Sales [1] 555 453  
Trust Investments, Cost 1,882   $ 1,858
Gross Unrealized Gains 232   374
Gross Unrealized Losses (87)   (18)
Trust Investments, Fair Value 2,027 [2]   2,214
Gross Realized Gains 38 45  
Available-for-sale Securities, Gross Realized Losses 34 19  
Realized Investment Gains (Losses) [3] 4 26  
Unrealized Gain (Loss) on Equity Securities (221) 99  
Net Gains (Losses) on Trust Investments (220) 125  
NDT Fund Foreign Currency     2
Rabbi Trust [Member]      
Schedule of Trust Investments [Line Items]      
Proceeds from Sales [4] 54 44  
Trust Investments, Cost 229   228
Gross Unrealized Gains 18   18
Gross Unrealized Losses (3)   0
Trust Investments, Fair Value 244   246
Gross Realized Gains 5 1  
Available-for-sale Securities, Gross Realized Losses 1 1  
Realized Investment Gains (Losses) [5] 4 0  
Unrealized Gain (Loss) on Equity Securities (5) 3  
Net Gains (Losses) on Trust Investments (1) $ 3  
Total Debt Securities [Member] | Nuclear Decommissioning Trust (NDT) Fund [Member] | PSEG Power [Member]      
Schedule of Trust Investments [Line Items]      
Debt Securities, Available-for-sale, Amortized Cost 1,051   1,033
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax 52   33
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax 12   3
Debt Securities, Available-for-Sale, Fair Value 1,091   1,063
Total Debt Securities [Member] | Rabbi Trust [Member]      
Schedule of Trust Investments [Line Items]      
Debt Securities, Available-for-sale, Amortized Cost 208   207
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax 17   11
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax 3   0
Debt Securities, Available-for-Sale, Fair Value 222   218
Equity Securities [Member] | Nuclear Decommissioning Trust (NDT) Fund [Member] | PSEG Power [Member]      
Schedule of Trust Investments [Line Items]      
Equity Securities, Cost 831   825
Equity Securities, Accumulated Gross Unrealized Gain 180   341
Equity Securities, Accumulated Gross Unrealized Loss 75   15
Equity Securities, Fair Value 936   1,151
Corporate Debt Obligations [Member] | Nuclear Decommissioning Trust (NDT) Fund [Member] | PSEG Power [Member]      
Schedule of Trust Investments [Line Items]      
Debt Securities, Available-for-sale, Amortized Cost 525   470
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax 13   17
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax 11   1
Debt Securities, Available-for-Sale, Fair Value 527   486
Corporate Debt Obligations [Member] | Rabbi Trust [Member]      
Schedule of Trust Investments [Line Items]      
Debt Securities, Available-for-sale, Amortized Cost 111   107
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax 4   7
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax 3   0
Debt Securities, Available-for-Sale, Fair Value 112   114
Government Debt Securities [Member] | Nuclear Decommissioning Trust (NDT) Fund [Member] | PSEG Power [Member]      
Schedule of Trust Investments [Line Items]      
Debt Securities, Available-for-sale, Amortized Cost 526   563
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax 39   16
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax 1   2
Debt Securities, Available-for-Sale, Fair Value 564   577
Government Debt Securities [Member] | Rabbi Trust [Member]      
Schedule of Trust Investments [Line Items]      
Debt Securities, Available-for-sale, Amortized Cost 97   100
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax 13   4
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax 0   0
Debt Securities, Available-for-Sale, Fair Value 110   104
International Equity Securities [Member] | Nuclear Decommissioning Trust (NDT) Fund [Member] | PSEG Power [Member]      
Schedule of Trust Investments [Line Items]      
Equity Securities, Cost 386   400
Equity Securities, Accumulated Gross Unrealized Gain 33   103
Equity Securities, Accumulated Gross Unrealized Loss 48   11
Equity Securities, Fair Value 371   492
Domestic Equity Securities [Member] | Nuclear Decommissioning Trust (NDT) Fund [Member] | PSEG Power [Member]      
Schedule of Trust Investments [Line Items]      
Equity Securities, Cost 445   425
Equity Securities, Accumulated Gross Unrealized Gain 147   238
Equity Securities, Accumulated Gross Unrealized Loss 27   4
Equity Securities, Fair Value 565   659
Domestic Equity Securities [Member] | Rabbi Trust [Member]      
Schedule of Trust Investments [Line Items]      
Equity Securities, Cost 21   21
Equity Securities, Accumulated Gross Unrealized Gain 1   7
Equity Securities, Accumulated Gross Unrealized Loss 0   0
Equity Securities, Fair Value $ 22   $ 28
[1] Includes activity in accounts related to the liquidation of funds being transitioned to new managers.
[2]
The NDT Fund Investments table excludes foreign currency of $2 million as of December 31, 2019, which is part of the NDT Fund.
[3] The cost of these securities was determined on the basis of specific identification.
[4] Includes activity in accounts related to the liquidation of funds being transitioned to new managers.
[5] The cost of these securities was determined on the basis of specific identification.
v3.20.1
Trust Investments (Schedule Of Accounts Receivable And Accounts Payable) (Detail) - USD ($)
$ in Millions
Mar. 31, 2020
Dec. 31, 2019
Nuclear Decommissioning Trust (NDT) Fund [Member] | PSEG Power [Member]    
Schedule of Trust Investments [Line Items]    
Accounts Receivable $ 20 $ 11
Accounts Payable 30 11
Rabbi Trust [Member]    
Schedule of Trust Investments [Line Items]    
Accounts Receivable 7 2
Accounts Payable $ 2 $ 0
v3.20.1
Trust Investments (Value Of Securities That Have Been In An Unrealized Loss Position For Less Than And Greater Than 12 Months) (Detail) - USD ($)
$ in Millions
Mar. 31, 2020
Dec. 31, 2019
Nuclear Decommissioning Trust (NDT) Fund [Member] | PSEG Power [Member]    
Schedule of Trust Investments [Line Items]    
Fair Value of Equity Securities in Unrealized Loss Position, Less Than 12 Months $ 507 $ 197
Gross Unrealized Losses on Equity Securities, Less Than 12 Months (66) (5)
Fair Value of Equity Securities in Unrealized Loss Position, Greater Than 12 Months 37 82
Gross Unrealized Losses on Equity Securities, Greater Than 12 Months (21) (13)
Rabbi Trust [Member]    
Schedule of Trust Investments [Line Items]    
Fair Value of Equity Securities in Unrealized Loss Position, Less Than 12 Months 48 37
Gross Unrealized Losses on Equity Securities, Less Than 12 Months (3) 0
Fair Value of Equity Securities in Unrealized Loss Position, Greater Than 12 Months 1 5
Gross Unrealized Losses on Equity Securities, Greater Than 12 Months 0 0
Equity Securities [Member] | Nuclear Decommissioning Trust (NDT) Fund [Member] | PSEG Power [Member]    
Schedule of Trust Investments [Line Items]    
Fair Value of Equity Securities in Unrealized Loss Position, Less Than 12 Months [1] 266 49
Gross Unrealized Losses on Equity Securities, Less Than 12 Months [1] (55) (3)
Fair Value of Equity Securities in Unrealized Loss Position, Greater Than 12 Months [1] 26 40
Gross Unrealized Losses on Equity Securities, Greater Than 12 Months [1] (20) (12)
Total Debt Securities [Member] | Nuclear Decommissioning Trust (NDT) Fund [Member] | PSEG Power [Member]    
Schedule of Trust Investments [Line Items]    
Fair Value of Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months 241 148
Gross Unrealized Losses on Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months (11) (2)
Fair Value of Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer 11 42
Gross Unrealized Losses on Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, (1) (1)
Total Debt Securities [Member] | Rabbi Trust [Member]    
Schedule of Trust Investments [Line Items]    
Fair Value of Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months 48 37
Gross Unrealized Losses on Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months (3) 0
Fair Value of Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer 1 5
Gross Unrealized Losses on Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, 0 0
Corporate Debt Obligations [Member] | Nuclear Decommissioning Trust (NDT) Fund [Member] | PSEG Power [Member]    
Schedule of Trust Investments [Line Items]    
Fair Value of Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months [2] 222 49
Gross Unrealized Losses on Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months [2] (10) 0
Fair Value of Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer [2] 9 12
Gross Unrealized Losses on Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, [2] (1) (1)
Corporate Debt Obligations [Member] | Rabbi Trust [Member]    
Schedule of Trust Investments [Line Items]    
Fair Value of Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months [3] 43 11
Gross Unrealized Losses on Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months [3] (3) 0
Fair Value of Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer [3] 1 2
Gross Unrealized Losses on Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, [3] 0 0
Government Debt Securities [Member] | Nuclear Decommissioning Trust (NDT) Fund [Member] | PSEG Power [Member]    
Schedule of Trust Investments [Line Items]    
Fair Value of Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months [4] 19 99
Gross Unrealized Losses on Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months [4] (1) (2)
Fair Value of Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer [4] 2 30
Gross Unrealized Losses on Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, [4] 0 0
Government Debt Securities [Member] | Rabbi Trust [Member]    
Schedule of Trust Investments [Line Items]    
Fair Value of Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months [5] 5 26
Gross Unrealized Losses on Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months [5] 0 0
Fair Value of Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer [5] 0 3
Gross Unrealized Losses on Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, [5] 0 0
International Equity Securities [Member] | Nuclear Decommissioning Trust (NDT) Fund [Member] | PSEG Power [Member]    
Schedule of Trust Investments [Line Items]    
Fair Value of Equity Securities in Unrealized Loss Position, Less Than 12 Months [1] 146 28
Gross Unrealized Losses on Equity Securities, Less Than 12 Months [1] (31) (2)
Fair Value of Equity Securities in Unrealized Loss Position, Greater Than 12 Months [1] 23 34
Gross Unrealized Losses on Equity Securities, Greater Than 12 Months [1] (17) (9)
Domestic Equity Securities [Member] | Nuclear Decommissioning Trust (NDT) Fund [Member] | PSEG Power [Member]    
Schedule of Trust Investments [Line Items]    
Fair Value of Equity Securities in Unrealized Loss Position, Less Than 12 Months [1] 120 21
Gross Unrealized Losses on Equity Securities, Less Than 12 Months [1] (24) (1)
Fair Value of Equity Securities in Unrealized Loss Position, Greater Than 12 Months [1] 3 6
Gross Unrealized Losses on Equity Securities, Greater Than 12 Months [1] $ (3) $ (3)
[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. Unrealized gains and losses on these securities are recorded in Net Income.
[2]
Debt Securities (Corporate)—Unrealized gains and losses on these securities are recorded in Accumulated Other Comprehensive Income (Loss). Unrealized losses were due to market declines. It is not expected that these securities would settle for less than their amortized cost. PSEG Power does not intend to sell these securities nor will it be more-likely-than-not required to sell before recovery of their amortized cost. PSEG Power did not recognize credit losses for these corporate bonds because they are primarily investment grade securities.
[3] Debt Securities (Corporate)—Unrealized gains and losses on these securities are recorded in Accumulated Other Comprehensive Income (Loss). Unrealized losses were due to market declines. It is not expected that these securities would settle for less than their amortized cost. PSEG does not intend to sell these securities nor will it be more-likely-than-not required to sell before recovery of their amortized cost.
[4] Debt Securities (Government)—Unrealized gains and losses on these securities are recorded in Accumulated Other Comprehensive Income (Loss). The unrealized losses on PSEG Power’s NDT investments in U.S. Treasury obligations and Federal Agency mortgage-backed securities were caused by interest rate changes. PSEG Power also has investments in municipal bonds. It is not expected that these securities will settle for less than their amortized cost. PSEG Power does not intend to sell these securities nor will it be more-likely-than-not required to sell before recovery of their amortized cost. PSEG Power did not recognize credit losses for U.S. Treasury obligations and Federal Agency mortgage-backed securities because these investments are guaranteed by the U.S. government or an agency of the U.S. government. PSEG Power did not recognize credit losses for municipal bonds because they are primarily investment grade securities
[5]
Debt Securities (Government)—Unrealized gains and losses on these securities are recorded in Accumulated Other Comprehensive Income (Loss). The unrealized losses on PSEG’s Rabbi Trust investments in U.S. Treasury obligations and Federal Agency mortgage-backed securities were caused by interest rate changes. PSEG also has investments in municipal bonds. It is not expected that these securities will settle for less than their amortized cost. PSEG does not intend to sell these securities nor will it be more-likely-than-not required to sell before recovery of their amortized cost. PSEG did not recognize credit losses for U.S. Treasury obligations and Federal Agency mortgage-backed securities because these investments are guaranteed by the U.S. government or an agency of the U.S. government. PSEG did not recognize credit losses for municipal bonds because they are primarily investment grade securities.
v3.20.1
Trust Investments (Proceeds From The Sales Of And The Net Realized Gains On Securities in the NDT and Rabbi Trusts) (Detail) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Schedule of Trust Investments [Line Items]    
Net Gains (Losses) on Trust Investments $ (221) $ 128
Rabbi Trust [Member]    
Schedule of Trust Investments [Line Items]    
Proceeds from Sales [1] 54 44
Gross Realized Gains 5 1
Gross Realized Losses (1) (1)
Net Realized Gains (Losses) [2] 4 0
Unrealized Gain (Loss) on Equity Securities (5) 3
Net Gains (Losses) on Trust Investments (1) 3
PSEG Power [Member]    
Schedule of Trust Investments [Line Items]    
Net Gains (Losses) on Trust Investments (220) 126
PSEG Power [Member] | Nuclear Decommissioning Trust (NDT) Fund [Member]    
Schedule of Trust Investments [Line Items]    
Proceeds from Sales [3] 555 453
Gross Realized Gains 38 45
Gross Realized Losses (34) (19)
Net Realized Gains (Losses) [4] 4 26
Unrealized Gain (Loss) on Equity Securities (221) 99
Unrealized Losses on Debt Securities (3) [5] 0
Net Gains (Losses) on Trust Investments $ (220) $ 125
[1] Includes activity in accounts related to the liquidation of funds being transitioned to new managers.
[2] The cost of these securities was determined on the basis of specific identification.
[3] Includes activity in accounts related to the liquidation of funds being transitioned to new managers.
[4] The cost of these securities was determined on the basis of specific identification.
[5]
PSEG Power recognized an impairment of available-for-sale debt securities that it intends to sell. PSEG Power’s policy is to sell all such securities that are rated below investment grade.
v3.20.1
Trust Investments (Amount Of Available-For-Sale Debt Securities By Maturity Periods) (Detail)
$ in Millions
Mar. 31, 2020
USD ($)
Rabbi Trust [Member]  
Schedule of Trust Investments [Line Items]  
Total Available-for-Sale Debt Securities $ 222
PSEG Power [Member] | Nuclear Decommissioning Trust (NDT) Fund [Member]  
Schedule of Trust Investments [Line Items]  
Total Available-for-Sale Debt Securities 1,091
Debt Securities [Member] | Rabbi Trust [Member]  
Schedule of Trust Investments [Line Items]  
Less than one year 3
1 - 5 years 27
6 - 10 years 33
11 - 15 years 14
16 - 20 years 23
Over 20 years 122
Debt Securities [Member] | PSEG Power [Member] | Nuclear Decommissioning Trust (NDT) Fund [Member]  
Schedule of Trust Investments [Line Items]  
Less than one year 17
1 - 5 years 278
6 - 10 years 183
11 - 15 years 63
16 - 20 years 73
Over 20 years $ 477
v3.20.1
Trust Investments (Fair Value Of Rabbi Trust) (Detail) - USD ($)
$ in Millions
Mar. 31, 2020
Dec. 31, 2019
Schedule of Trust Investments [Line Items]    
Total Rabbi Trust Investments $ 244 $ 246
PSEG Power [Member]    
Schedule of Trust Investments [Line Items]    
Total Rabbi Trust Investments 61 62
Public Service Electric and Gas Company [Member]    
Schedule of Trust Investments [Line Items]    
Total Rabbi Trust Investments 47 48
Rabbi Trust [Member]    
Schedule of Trust Investments [Line Items]    
Total Rabbi Trust Investments 244 246
Rabbi Trust [Member] | PSEG Power [Member]    
Schedule of Trust Investments [Line Items]    
Total Rabbi Trust Investments 61 62
Rabbi Trust [Member] | Public Service Electric and Gas Company [Member]    
Schedule of Trust Investments [Line Items]    
Total Rabbi Trust Investments 47 48
Rabbi Trust [Member] | Other Entity [Member]    
Schedule of Trust Investments [Line Items]    
Total Rabbi Trust Investments $ 136 $ 136
v3.20.1
Trust Investments (Narrative) (Detail)
$ in Millions
 3 Months Ended
Mar. 31, 2020
USD ($)
Facility
Mar. 31, 2019
USD ($)
PSEG Power [Member]    
Schedule of Trust Investments [Line Items]    
Number of Nuclear Facilities | Facility 5  
Nuclear Decommissioning Trust (NDT) Fund [Member] | PSEG Power [Member]    
Schedule of Trust Investments [Line Items]    
Unrealized Losses on Debt Securities $ (3) [1] $ 0
Debt Securities [Member] | Nuclear Decommissioning Trust (NDT) Fund [Member] | PSEG Power [Member]    
Schedule of Trust Investments [Line Items]    
After tax amount of net unrealized gains recognized in AOCI 23  
Debt Securities [Member] | Rabbi Trust [Member]    
Schedule of Trust Investments [Line Items]    
After tax amount of net unrealized gains recognized in AOCI 10  
Equity Securities [Member] | Nuclear Decommissioning Trust (NDT) Fund [Member] | PSEG Power [Member]    
Schedule of Trust Investments [Line Items]    
Unrealized Gains (Losses) on Equity Securities still held (192)  
Equity Securities [Member] | Rabbi Trust [Member]    
Schedule of Trust Investments [Line Items]    
Unrealized Gains (Losses) on Equity Securities still held $ (6)  
[1]
PSEG Power recognized an impairment of available-for-sale debt securities that it intends to sell. PSEG Power’s policy is to sell all such securities that are rated below investment grade.
v3.20.1
Pension And OPEB (Components Of Net Periodic Benefit Cost) (Detail) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Pension Benefits [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Service Cost $ 35 $ 29
Interest Cost 48 58
Expected Return on Plan Assets (111) (97)
Amortization of Prior Service Cost (2) (5)
Amortization of Actuarial Loss 23 27
Non-Operating Pension and OPEB (Credits) Costs (42) (17)
Total Benefit Costs (7) 12
OPEB [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Service Cost 2 2
Interest Cost 9 11
Expected Return on Plan Assets (10) (9)
Amortization of Prior Service Cost (32) (32)
Amortization of Actuarial Loss 12 13
Non-Operating Pension and OPEB (Credits) Costs (21) (17)
Total Benefit Costs $ (19) $ (15)
v3.20.1
Pension And OPEB (Schedule Of Pension And OPEB Costs) (Detail) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Pension Benefits [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Total Benefit Costs $ (7) $ 12
Pension Benefits [Member] | Public Service Electric and Gas Company [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Total Benefit Costs (7) 7
Pension Benefits [Member] | PSEG Power [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Total Benefit Costs (1) 3
Pension Benefits [Member] | Other Entity [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Total Benefit Costs 1 2
OPEB [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Total Benefit Costs (19) (15)
OPEB [Member] | Public Service Electric and Gas Company [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Total Benefit Costs (19) (16)
OPEB [Member] | PSEG Power [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Total Benefit Costs 0 1
OPEB [Member] | Other Entity [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Total Benefit Costs $ 0 $ 0
v3.20.1
Pension And OPEB (Narrative) (Detail) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Pension Plan [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Total Benefit Costs $ (7) $ 12
Postretirement Healthcare Plans [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Total Benefit Costs (19) (15)
Long Island Electric Utility Servco LLC Pension and OPEB [Member] | Pension Plan [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Employer contributions 30  
Total Benefit Costs 8 7
Long Island Electric Utility Servco LLC Pension and OPEB [Member] | Postretirement Healthcare Plans [Member]    
Defined Benefit Plan Disclosure [Line Items]    
Total Benefit Costs $ 2 $ 1
v3.20.1
Commitments And Contingent Liabilities (Guaranteed Obligations) (Detail) - PSEG Power [Member] - USD ($)
$ in Millions
Mar. 31, 2020
Dec. 31, 2019
Loss Contingencies [Line Items]    
Face Value of Outstanding Guarantees $ 1,856 $ 1,854
Exposure under Current Guarantees 140 171
Letters of Credit Margin Posted 114 121
Letters of Credit Margin Received 94 29
Counterparty Cash Collateral Deposited 0 0
Counterparty Cash Collateral Received (7) (4)
Net Broker Balance Deposited (Received) (4) 48
Other Letters of Credit $ 82 $ 82
v3.20.1
Commitments And Contingent Liabilities (Environmental Matters) (Detail)
$ in Millions
Mar. 31, 2020
USD ($)
entity
Potentially_Responsible_Party
Plant
mi
Site Contingency [Line Items]  
Number of miles related to the Passaic River constituting a facility as determined by the US Environmental Protection Agency | mi 17
Number of additional legal entities contacted by EPA in conjunction with Newark Bay study area contamination | entity 11
Passaic River Site Contingency [Member]  
Site Contingency [Line Items]  
Estimated Cleanup Costs EPA Preferred Method $ 2,300
Accrual for Environmental Loss Contingencies $ 65
Number Of Additional Potentially Responsible Parties Directed By New Jersey Department Of Environmental Protection To Arrange Damage Assessment For Lower Passaic River | Potentially_Responsible_Party 56
Passaic River Site Contingency [Member] | Public Service Electric and Gas Company [Member]  
Site Contingency [Line Items]  
Number of former generating electric station | Plant 1
Accrual for Environmental Loss Contingencies $ 52
Passaic River Site Contingency [Member] | PSEG Power [Member]  
Site Contingency [Line Items]  
Accrual for Environmental Loss Contingencies 13
Mgp Remediation Site Contingency [Member] | Public Service Electric and Gas Company [Member]  
Site Contingency [Line Items]  
Remediation Liability Recorded As Other Current Liabilities 69
Remediation Liability Recorded As Other Noncurrent Liabilities 283
Regulatory Assets 352
Minimum [Member] | Mgp Remediation Site Contingency [Member] | Public Service Electric and Gas Company [Member]  
Site Contingency [Line Items]  
Loss Contingency, Estimate of Possible Loss 352
Accrual for Environmental Loss Contingencies 352
Maximum [Member] | Mgp Remediation Site Contingency [Member] | Public Service Electric and Gas Company [Member]  
Site Contingency [Line Items]  
Loss Contingency, Estimate of Possible Loss $ 395
v3.20.1
Commitments And Contingent Liabilities (Basic Generation Service (BGS) And Basic Gas Supply Service (BGSS)) (Detail)
cf in Billions
 3 Months Ended
Mar. 31, 2020
USD ($)
cf
$ / MWh
$ / mwd
MW
Long-term Purchase Commitment [Line Items]  
Number of cubic feet in gas hedging permitted to be recovered by BPU | cf 115
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%
Public Service Electric and Gas Company [Member]  
Long-term Purchase Commitment [Line Items]  
ZEC Charge per kwh | $ $ 0.004
Public Service Electric and Gas Company [Member] | Auction Year 2017 [Member]  
Long-term Purchase Commitment [Line Items]  
Load (MW) | MW 2,800
Dollars Per Megawatt Hour | $ / MWh 90.78
Public Service Electric and Gas Company [Member] | Auction Year 2018 [Member]  
Long-term Purchase Commitment [Line Items]  
Dollars Per Megawatt-Day | $ / mwd 281.78
Load (MW) | MW 2,900
Dollars Per Megawatt Hour | $ / MWh 91.77
Public Service Electric and Gas Company [Member] | Auction Year 2019 [Member]  
Long-term Purchase Commitment [Line Items]  
Dollars Per Megawatt-Day | $ / mwd 359.98
Load (MW) | MW 2,800
Dollars Per Megawatt Hour | $ / MWh 98.04
Public Service Electric and Gas Company [Member] | Auction Year 2020 [Member]  
Long-term Purchase Commitment [Line Items]  
Load (MW) | MW 2,800
Dollars Per Megawatt Hour | $ / MWh 102.16
v3.20.1
Commitments And Contingent Liabilities (Minimum Fuel Purchase Requirements) (Detail) - PSEG Power [Member]
$ in Millions
 3 Months Ended
Mar. 31, 2020
USD ($)
Long-term Purchase Commitment [Line Items]  
Coverage percentage of nuclear fuel commitments of uranium, enrichment, and fabrication requirements 100.00%
Nuclear Fuel Uranium [Member]  
Long-term Purchase Commitment [Line Items]  
Total five-year minimum purchase requirements $ 189
Nuclear Fuel Enrichment [Member]  
Long-term Purchase Commitment [Line Items]  
Total five-year minimum purchase requirements 336
Nuclear Fuel Fabrication [Member]  
Long-term Purchase Commitment [Line Items]  
Total five-year minimum purchase requirements 175
Natural Gas [Member]  
Long-term Purchase Commitment [Line Items]  
Total five-year minimum purchase requirements $ 1,214
v3.20.1
Commitments And Contingent Liabilities (Litigation) (Detail)
$ in Millions
Mar. 31, 2020
USD ($)
PSEG Power [Member] | Sewaren 7 Litigation [Member] | Maximum [Member]  
Loss Contingencies [Line Items]  
Sewaren 7 Construction complaint amount $ 93
v3.20.1
Debt and Credit Facilities (Changes in Long-Term Debt) (Detail) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Debt Instrument [Line Items]    
Issuance of Long-term Debt $ 600 $ 0
Public Service Electric and Gas Company [Member]    
Debt Instrument [Line Items]    
Issuance of Long-term Debt 600 $ 0
Medium Term Notes Two Point Four Five Percent due Two Thousand Thirty [Member] | Public Service Electric and Gas Company [Member]    
Debt Instrument [Line Items]    
Issuance of Long-term Debt $ 300  
Debt Instrument, Interest Rate, Stated Percentage 2.45%  
Medium Term Notes Three Point One Five Percent due Two Thousand Fifty [Member] | Public Service Electric and Gas Company [Member]    
Debt Instrument [Line Items]    
Issuance of Long-term Debt $ 300  
Debt Instrument, Interest Rate, Stated Percentage 3.15%  
v3.20.1
Debt and Credit Facilities Debt and Credit Facilities (Short-Term Liquidity) (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2020
Dec. 31, 2019
Commercial Paper $ 1,062 $ 1,115
Commitments of Single Institution as Percentage of Total Commitments 9.00%  
Line of Credit Facility, Remaining Borrowing Capacity $ 3,223  
Line of Credit Facility, Maximum Borrowing Capacity 4,200  
Line of Credit Facility, Fair Value of Amount Outstanding [1] 977  
Public Service Electric and Gas Company [Member]    
Commercial Paper 0 $ 362
Line of Credit Facility, Remaining Borrowing Capacity 583  
Line of Credit Facility, Maximum Borrowing Capacity 600  
Line of Credit Facility, Fair Value of Amount Outstanding [1] 17  
PSEG Power [Member]    
Line of Credit Facility, Remaining Borrowing Capacity 1,946  
Line of Credit Facility, Maximum Borrowing Capacity 2,100  
Line of Credit Facility, Fair Value of Amount Outstanding 154  
Five Year Credit Facility Maturing March 2023 [Member] | Public Service Electric and Gas Company [Member]    
Credit Facility Reduction in March 2022 4  
Line of Credit Facility, Remaining Borrowing Capacity $ 583  
Debt Instrument, Maturity Date, Description Mar 2024  
Line of Credit Facility, Maximum Borrowing Capacity [2] $ 600  
Line of Credit Facility, Fair Value of Amount Outstanding [1] 17  
Five Year Credit Facility Maturing March 2023 [Member] | PSEG Power [Member]    
Credit Facility Reduction in March 2022 12  
Line of Credit Facility, Remaining Borrowing Capacity $ 1,860  
Debt Instrument, Maturity Date, Description Mar 2024  
Line of Credit Facility, Maximum Borrowing Capacity [3] $ 1,900  
Line of Credit Facility, Fair Value of Amount Outstanding 40  
Three Year Credit Facilities Maturing September 2021 [Member] | PSEG Power [Member]    
Line of Credit Facility, Remaining Borrowing Capacity $ 86  
Debt Instrument, Maturity Date, Description Sept 2021  
Line of Credit Facility, Maximum Borrowing Capacity $ 200  
Line of Credit Facility, Fair Value of Amount Outstanding 114  
PSEG [Member]    
Line of Credit Facility, Remaining Borrowing Capacity 694  
Line of Credit Facility, Maximum Borrowing Capacity 1,500  
Line of Credit Facility, Fair Value of Amount Outstanding [1] 806  
PSEG [Member] | Five Year Credit Facility Maturing March 2023 [Member]    
Credit Facility Reduction in March 2022 9  
Line of Credit Facility, Remaining Borrowing Capacity $ 694  
Debt Instrument, Maturity Date, Description Mar 2024  
Line of Credit Facility, Maximum Borrowing Capacity [4] $ 1,500  
Line of Credit Facility, Fair Value of Amount Outstanding [1] 806  
PSEG [Member] | Five Year Credit Facility Maturing March 2023 [Member]    
Commercial Paper $ 762  
Short-term Debt, Weighted Average Interest Rate, at Point in Time 3.40%  
[1]
The primary use of PSEG’s and PSE&G’s credit facilities is to support their respective Commercial Paper Programs, under which as of March 31, 2020, PSEG had $762 million outstanding at a weighted average interest rate of 3.4%. PSE&G had no commercial paper outstanding under its Commercial Paper Program as of March 31, 2020.
[2]
PSE&G facility will be reduced by $4 million in March 2022.
[3]
PSEG Power facilities will be reduced by $12 million in March 2022.
[4]
PSEG facilities will be reduced by $9 million in March 2022.
v3.20.1
Financial Risk Management Activities (Schedule Of Derivative Transactions Designated And Effective As Cash Flow Hedges) (Detail) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Unrealized Gain (Loss) on Cash Flow Hedging Instruments $ (6) $ (5)
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion (2) 0
Interest Expense [Member] | Interest Rate Swap [Member]    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Unrealized Gain (Loss) on Cash Flow Hedging Instruments (6) (5)
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion $ (2)  
Derivative Instruments, Gain Reclassified from Accumulated OCI into Income, Effective Portion   $ 0
v3.20.1
Financial Risk Management Activities (Narrative) (Detail)
$ / Derivative in Millions, $ in Millions
 3 Months Ended 12 Months Ended
Mar. 31, 2020
USD ($)
$ / Derivative
Dec. 31, 2019
USD ($)
$ / Derivative
Derivatives, Fair Value [Line Items]    
Accumulated Other Comprehensive Income (Loss), Cumulative Changes in Net Gain (Loss) from Cash Flow Hedges, Effect Net of Tax $ (18) $ (15)
Derivative, Fair Value, Amount Offset Against Collateral, Net (13) (2)
Derivative, Fair Value, Net 195 100
Unrealized Loss to be Reclassified to Earnings During the Next Twelve Months (2)  
PSEG Power [Member]    
Derivatives, Fair Value [Line Items]    
Securities held as Collateral 93  
Derivative, Fair Value, Amount Offset Against Collateral, Net (13) [1],[2] (2)
Fair Value of Derivatives with credit-risk related contingent features 37 35
Aggregate fair value of derivative contracts in a liability position that contains triggers for additional collateral 4 2
Additional collateral aggregate fair value 33  
Derivative, Fair Value, Net $ 205 [2] $ 105
Interest Rate Swaps [Member]    
Derivatives, Fair Value [Line Items]    
Interest Rate Hedge outstanding | $ / Derivative 700 700
Interest Rate Swaps [Member] | PSEG [Member]    
Derivatives, Fair Value [Line Items]    
Interest Rate Hedge outstanding | $ / Derivative 700 700
Interest Rate Swaps [Member] | PSEG Power [Member]    
Derivatives, Fair Value [Line Items]    
Interest Rate Hedge outstanding | $ / Derivative 0 0
Interest Rate Swaps [Member] | Public Service Electric and Gas Company [Member]    
Derivatives, Fair Value [Line Items]    
Interest Rate Hedge outstanding | $ / Derivative 0 0
Term Loan maturing in 2020 [Member] | Interest Rate Swap [Member] | PSEG [Member]    
Derivatives, Fair Value [Line Items]    
Interest Rate Hedge outstanding | $ / Derivative 700  
Fair Value Hedging [Member] | Interest Rate Swap [Member] | PSEG [Member]    
Derivatives, Fair Value [Line Items]    
Derivative, Fair Value, Net [2] $ (10) $ (5)
[1] 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) posted that has been allocated to derivative positions, where the right of offset exists, has been offset on the Condensed Consolidated Balance Sheets. As of March 31, 2020 and December 31, 2019, PSEG Power had net cash collateral (receipts) payments to counterparties of $(11) million and $44 million, respectively. Of these net cash collateral (receipts) payments, $(13) million as of March 31, 2020 and $(2) million as of December 31, 2019 were netted against the corresponding net derivative contract positions. Of the $(13) million as of March 31, 2020, $(7) million was netted against current assets and $(6) million was netted against noncurrent assets. Of the $(2) million as of December 31, 2019, $(1) million was netted against current assets and $(1) million was netted against noncurrent assets
[2] Substantially all of PSEG Power’s and PSEG’s derivative instruments are contracts subject to master netting agreements. Contracts not subject to master netting or similar agreements are immaterial and did not have any collateral posted or received as of March 31, 2020 and December 31, 2019.
v3.20.1
Financial Risk Management Activities (Schedule Of Derivative Instruments Fair Value In Balance Sheets) (Detail) - USD ($)
$ in Millions
Mar. 31, 2020
Dec. 31, 2019
Derivatives, Fair Value [Line Items]    
Collateral Already Posted, Aggregate Fair Value $ (11) $ 44
Derivative Contracts, Current Assets 169 113
Derivative Contracts, Noncurrent Assets 69 24
Total Mark-to-Market Derivative Assets 238 137
Derivative Contracts, Current Liabilities (40) (36)
Derivative Contracts, Noncurrent Liabilities (3) (1)
Total Mark-to-Market Derivative (Liabilities) (43) (37)
Net Mark-to-Market Derivative Assets (Liabilities) 195 100
Derivative, Fair Value, Amount Offset Against Collateral, Net (13) (2)
PSEG Power [Member]    
Derivatives, Fair Value [Line Items]    
Derivative Contracts, Current Assets [1] 169 113
Derivative Contracts, Noncurrent Assets [1] 69 24
Total Mark-to-Market Derivative Assets 238 137
Derivative Contracts, Current Liabilities [1] (30) (31)
Derivative Contracts, Noncurrent Liabilities [1] (3) (1)
Total Mark-to-Market Derivative (Liabilities) (33) (32)
Net Mark-to-Market Derivative Assets (Liabilities) 205 [1] 105
Derivative, Fair Value, Amount Offset Against Collateral, Net (13) [1],[2] (2)
Other Current Assets [Member]    
Derivatives, Fair Value [Line Items]    
Derivative, Fair Value, Amount Offset Against Collateral, Net (7) (1)
Other Noncurrent Assets [Member]    
Derivatives, Fair Value [Line Items]    
Derivative, Fair Value, Amount Offset Against Collateral, Net (6) (1)
Energy-Related Contracts [Member] | Not Designated as Hedging Instrument [Member] | PSEG Power [Member]    
Derivatives, Fair Value [Line Items]    
Derivative Contracts, Current Assets [1] 878 636
Derivative Contracts, Noncurrent Assets [1] 299 163
Total Mark-to-Market Derivative Assets 1,177 799
Derivative Contracts, Current Liabilities [1] (732) (553)
Derivative Contracts, Noncurrent Liabilities [1] (227) (139)
Total Mark-to-Market Derivative (Liabilities) (959) (692)
Net Mark-to-Market Derivative Assets (Liabilities) 218 [1] 107
Energy-Related Contracts [Member] | Other Noncurrent Liabilities [Member] | PSEG Power [Member]    
Derivatives, Fair Value [Line Items]    
Derivative, Fair Value, Amount Offset Against Collateral, Net [1],[2] 224 138
Energy-Related Contracts [Member] | Other Current Assets [Member] | PSEG Power [Member]    
Derivatives, Fair Value [Line Items]    
Derivative, Fair Value, Amount Offset Against Collateral, Net [1],[2] (709) (523)
Energy-Related Contracts [Member] | Other Noncurrent Assets [Member] | PSEG Power [Member]    
Derivatives, Fair Value [Line Items]    
Derivative, Fair Value, Amount Offset Against Collateral, Net [1],[2] (230) (139)
Energy-Related Contracts [Member] | Assets [Member]    
Derivatives, Fair Value [Line Items]    
Derivative, Fair Value, Amount Offset Against Collateral, Net [3] (939) (662)
Energy-Related Contracts [Member] | Assets [Member] | PSEG Power [Member]    
Derivatives, Fair Value [Line Items]    
Derivative, Fair Value, Amount Offset Against Collateral, Net [3] (939) (662)
Energy-Related Contracts [Member] | Other Current Liabilities [Member] | PSEG Power [Member]    
Derivatives, Fair Value [Line Items]    
Derivative, Fair Value, Amount Offset Against Collateral, Net [1],[2] 702 522
Energy-Related Contracts [Member] | Other Liabilities [Member]    
Derivatives, Fair Value [Line Items]    
Derivative, Fair Value, Amount Offset Against Collateral, Net [3] 926 660
Energy-Related Contracts [Member] | Other Liabilities [Member] | PSEG Power [Member]    
Derivatives, Fair Value [Line Items]    
Derivative, Fair Value, Amount Offset Against Collateral, Net [3] 926 660
Interest Rate Swap [Member] | PSEG [Member] | Fair Value Hedging [Member]    
Derivatives, Fair Value [Line Items]    
Derivative Contracts, Current Assets 0 [1] 0
Derivative Contracts, Noncurrent Assets 0 [1] 0
Total Mark-to-Market Derivative Assets 0 0 [1]
Derivative Contracts, Current Liabilities (10) [1] (5)
Derivative Contracts, Noncurrent Liabilities 0 [1] 0
Total Mark-to-Market Derivative (Liabilities) (10) (5) [1]
Net Mark-to-Market Derivative Assets (Liabilities) [1] (10) (5)
Interest Rate Swap [Member] | Other Liabilities [Member]    
Derivatives, Fair Value [Line Items]    
Derivative, Fair Value, Amount Offset Against Collateral, Net $ 0 $ 0
[1] Substantially all of PSEG 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 March 31, 2020 and December 31, 2019.
[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) posted that has been allocated to derivative positions, where the right of offset exists, has been offset on the Condensed Consolidated Balance Sheets. As of March 31, 2020 and December 31, 2019, PSEG Power had net cash collateral (receipts) payments to counterparties of $(11) million and $44 million, respectively. Of these net cash collateral (receipts) payments, $(13) million as of March 31, 2020 and $(2) million as of December 31, 2019 were netted against the corresponding net derivative contract positions. Of the $(13) million as of March 31, 2020, $(7) million was netted against current assets and $(6) million was netted against noncurrent assets. Of the $(2) million as of December 31, 2019, $(1) million was netted against current assets and $(1) million was netted against noncurrent assets
[3]
Represents the netting of fair value balances with the same counterparty (where the right of offset exists) and the application of collateral. See Note 13. Financial Risk Management Activities for additional detail.
v3.20.1
Financial Risk Management Activities (Schedule Of Reconciliation For Derivative Activity Included In Accumulated Other Comprehensive Loss) (Detail) - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Dec. 31, 2019
Derivative Instruments and Hedging Activities Disclosures [Line Items]      
Gain (Loss) in AOCI $ 10 $ 13  
(Gain) Loss into Income (2) 4  
Cash Flow Hedges [Member]      
Derivative Instruments and Hedging Activities Disclosures [Line Items]      
Pre-Tax Balance at Beginning of Period (21) (2) $ (2)
Gain (Loss) in AOCI (6)   (23)
(Gain) Loss into Income 2   4
Pre-Tax Balance at End of Period (25)   (21)
After-Tax Balance at Beginning of Period (15) (1) (1)
Gain (Loss) in AOCI (4) (4) (17)
(Gain) Loss into Income 1 $ 0 3
After-Tax Balance at End of Period $ (18)   $ (15)
v3.20.1
Financial Risk Management Activities (Schedule Of Derivative Instruments Not Designated As Hedging Instruments And Impact On Results Of Operations) (Detail) - Energy-Related Contracts [Member] - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Derivative Instruments, Gain (Loss) [Line Items]    
Pre-Tax Gain (Loss) Recognized in Income on Derivatives $ 163 $ 126
Operating Revenues [Member]    
Derivative Instruments, Gain (Loss) [Line Items]    
Pre-Tax Gain (Loss) Recognized in Income on Derivatives 231 139
Energy Costs [Member]    
Derivative Instruments, Gain (Loss) [Line Items]    
Pre-Tax Gain (Loss) Recognized in Income on Derivatives $ (68) $ (13)
v3.20.1
Financial Risk Management Activities (Schedule Of Net Notional Volume For Open Derivative Contracts) (Detail)
$ / mwh in Millions, $ / Derivative in Millions, $ / DTH in Millions
 3 Months Ended 12 Months Ended
Mar. 31, 2020
$ / Derivative
$ / DTH
$ / mwh
Dec. 31, 2019
$ / Derivative
$ / DTH
$ / mwh
Natural Gas Dth [Member]    
Derivative [Line Items]    
Net notional volume of derivative transactions | $ / DTH 449 341
Electricity MWh [Member]    
Derivative [Line Items]    
Net notional volume of derivative transactions (60) (62)
FTRs MWh [Member]    
Derivative [Line Items]    
Net notional volume of derivative transactions 8 13
Interest Rate Swaps [Member]    
Derivative [Line Items]    
Net notional volume of derivative transactions | $ / Derivative 700 700
PSEG [Member] | Natural Gas Dth [Member]    
Derivative [Line Items]    
Net notional volume of derivative transactions 0 0
PSEG [Member] | Electricity MWh [Member]    
Derivative [Line Items]    
Net notional volume of derivative transactions 0 0
PSEG [Member] | FTRs MWh [Member]    
Derivative [Line Items]    
Net notional volume of derivative transactions 0 0
PSEG [Member] | Interest Rate Swaps [Member]    
Derivative [Line Items]    
Net notional volume of derivative transactions | $ / Derivative 700 700
PSEG Power [Member] | Natural Gas Dth [Member]    
Derivative [Line Items]    
Net notional volume of derivative transactions | $ / DTH 449 341
PSEG Power [Member] | Electricity MWh [Member]    
Derivative [Line Items]    
Net notional volume of derivative transactions (60) (62)
PSEG Power [Member] | FTRs MWh [Member]    
Derivative [Line Items]    
Net notional volume of derivative transactions 8 13
PSEG Power [Member] | Interest Rate Swaps [Member]    
Derivative [Line Items]    
Net notional volume of derivative transactions | $ / Derivative 0 0
Public Service Electric and Gas Company [Member] | Natural Gas Dth [Member]    
Derivative [Line Items]    
Net notional volume of derivative transactions | $ / DTH 0 0
Public Service Electric and Gas Company [Member] | Electricity MWh [Member]    
Derivative [Line Items]    
Net notional volume of derivative transactions 0 0
Public Service Electric and Gas Company [Member] | FTRs MWh [Member]    
Derivative [Line Items]    
Net notional volume of derivative transactions 0 0
Public Service Electric and Gas Company [Member] | Interest Rate Swaps [Member]    
Derivative [Line Items]    
Net notional volume of derivative transactions | $ / Derivative 0 0
v3.20.1
Financial Risk Management Activities (Schedule Providing Credit Risk From Others, Net Of Collateral) (Detail) - PSEG Power [Member]
$ in Millions
 3 Months Ended
Mar. 31, 2020
USD ($)
Counterparty
Derivative [Line Items]  
Current Exposure $ 492
Securities held as Collateral 93
Net exposure 399
Number of Counterparties greater than 10% $ 3
Number Of Active Counterparties On Credit Risk Derivatives | Counterparty 141
Investment Grade - External Rating [Member]  
Derivative [Line Items]  
Percentage Of Credit Exposure 99.00%
Investment Grade [Member]  
Derivative [Line Items]  
Current Exposure $ 488
Securities held as Collateral 93
Net exposure 395
Number of Counterparties greater than 10% 3
Amount Of Net Credit Exposure Greater Than Ten Percent 235 [1]
External Credit Rating, Non Investment Grade [Member]  
Derivative [Line Items]  
Current Exposure 4
Securities held as Collateral 0
Amount Of Net Credit Exposure Greater Than Ten Percent 0
Non-Investment Grade [Member]  
Derivative [Line Items]  
Net exposure 4
Number of Counterparties greater than 10% 0
Cash [Member]  
Derivative [Line Items]  
Securities held as Collateral 6
Letter of Credit [Member]  
Derivative [Line Items]  
Securities held as Collateral 87
Other Entities [Member] | Investment Grade [Member]  
Derivative [Line Items]  
Amount Of Net Credit Exposure Greater Than Ten Percent 98
Public Service Electric and Gas Company [Member] | Investment Grade [Member]  
Derivative [Line Items]  
Amount Of Net Credit Exposure Greater Than Ten Percent $ 137
[1] Represents net exposure of $137 million with PSE&G and $98 million with two non-affiliated counterpart
v3.20.1
Fair Value Measurements (PSEG's, Power's And PSE&G's Respective Assets And (Liabilities) Measured At Fair Value On A Recurring Basis) (Detail) - USD ($)
$ in Millions
Mar. 31, 2020
Dec. 31, 2019
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Collateral Already Posted, Aggregate Fair Value $ (11) $ 44
Total Mark-to-Market Derivative Assets 238 137
Total Mark-to-Market Derivative (Liabilities) (43) (37)
Collateral netted against assets and liabilities 13 2
PSEG Power [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Total Mark-to-Market Derivative Assets 238 137
Total Mark-to-Market Derivative (Liabilities) (33) (32)
Collateral netted against assets and liabilities 13 [1],[2] 2
Quoted Market Prices of Identical Assets (Level 1) [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash Equivalents, Fair Value Disclosure [3] 250 50
Significant Other Observable Inputs (Level 2) [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash Equivalents, Fair Value Disclosure [3] 0 0
Significant Unobservable Inputs (Level 3) [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash Equivalents, Fair Value Disclosure [3] 0 0
Total Estimate Of Fair Value [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash Equivalents, Fair Value Disclosure [3] 250 50
Energy-Related Contracts [Member] | Quoted Market Prices of Identical Assets (Level 1) [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Total Mark-to-Market Derivative Assets [4] 24 19
Total Mark-to-Market Derivative (Liabilities) [4] (73) (43)
Energy-Related Contracts [Member] | Quoted Market Prices of Identical Assets (Level 1) [Member] | PSEG Power [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Total Mark-to-Market Derivative Assets [4] 24 19
Total Mark-to-Market Derivative (Liabilities) [4] (73) (43)
Energy-Related Contracts [Member] | Significant Other Observable Inputs (Level 2) [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Total Mark-to-Market Derivative Assets [4] 1,132 770
Total Mark-to-Market Derivative (Liabilities) [4] (884) (646)
Energy-Related Contracts [Member] | Significant Other Observable Inputs (Level 2) [Member] | PSEG Power [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Total Mark-to-Market Derivative Assets [4] 1,132 770
Total Mark-to-Market Derivative (Liabilities) [4] (884) 646
Energy-Related Contracts [Member] | Significant Unobservable Inputs (Level 3) [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Total Mark-to-Market Derivative Assets [4] 21 10
Total Mark-to-Market Derivative (Liabilities) [4] (2) (3)
Energy-Related Contracts [Member] | Significant Unobservable Inputs (Level 3) [Member] | PSEG Power [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Total Mark-to-Market Derivative Assets [4] 21 10
Total Mark-to-Market Derivative (Liabilities) [4] (2) (3)
Energy-Related Contracts [Member] | Total Estimate Of Fair Value [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Total Mark-to-Market Derivative Assets [4] 238 137
Total Mark-to-Market Derivative (Liabilities) [4] (33) (32)
Energy-Related Contracts [Member] | Total Estimate Of Fair Value [Member] | PSEG Power [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Total Mark-to-Market Derivative Assets [4] 238 137
Total Mark-to-Market Derivative (Liabilities) [4] (33) (32)
Interest Rate Swap [Member] | Quoted Market Prices of Identical Assets (Level 1) [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Total Mark-to-Market Derivative (Liabilities) [5] 0 0
Interest Rate Swap [Member] | Significant Other Observable Inputs (Level 2) [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Total Mark-to-Market Derivative (Liabilities) [5] (10) (5)
Interest Rate Swap [Member] | Significant Unobservable Inputs (Level 3) [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Total Mark-to-Market Derivative (Liabilities) [5] 0 0
Interest Rate Swap [Member] | Total Estimate Of Fair Value [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Total Mark-to-Market Derivative (Liabilities) [5] (10) (5)
Cash and Cash Equivalents [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Collateral netted against assets and liabilities 0 0
Assets [Member] | Energy-Related Contracts [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Collateral netted against assets and liabilities [6] 939 662
Assets [Member] | Energy-Related Contracts [Member] | PSEG Power [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Collateral netted against assets and liabilities [6] 939 662
Other Liabilities [Member] | Energy-Related Contracts [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Collateral netted against assets and liabilities [6] (926) (660)
Other Liabilities [Member] | Energy-Related Contracts [Member] | PSEG Power [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Collateral netted against assets and liabilities [6] (926) (660)
Other Liabilities [Member] | Interest Rate Swap [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Collateral netted against assets and liabilities 0 0
Rabbi Trusts Debt Securities Other [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Collateral netted against assets and liabilities 0 0
Rabbi Trusts Debt Securities Other [Member] | PSEG Power [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Collateral netted against assets and liabilities 0 0
Rabbi Trusts Debt Securities Other [Member] | Public Service Electric and Gas Company [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Collateral netted against assets and liabilities 0 0
Rabbi Trusts Debt Securities Other [Member] | Quoted Market Prices of Identical Assets (Level 1) [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair Value, Measured on Recurring Basis, Investments [7] 0 0
Rabbi Trusts Debt Securities Other [Member] | Quoted Market Prices of Identical Assets (Level 1) [Member] | PSEG Power [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair Value, Measured on Recurring Basis, Investments [7] 0 0
Rabbi Trusts Debt Securities Other [Member] | Quoted Market Prices of Identical Assets (Level 1) [Member] | Public Service Electric and Gas Company [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair Value, Measured on Recurring Basis, Investments [7] 0 0
Rabbi Trusts Debt Securities Other [Member] | Significant Other Observable Inputs (Level 2) [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair Value, Measured on Recurring Basis, Investments [7] 112 114
Rabbi Trusts Debt Securities Other [Member] | Significant Other Observable Inputs (Level 2) [Member] | PSEG Power [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair Value, Measured on Recurring Basis, Investments [7] 27 28
Rabbi Trusts Debt Securities Other [Member] | Significant Other Observable Inputs (Level 2) [Member] | Public Service Electric and Gas Company [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair Value, Measured on Recurring Basis, Investments [7] 22 23
Rabbi Trusts Debt Securities Other [Member] | Significant Unobservable Inputs (Level 3) [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair Value, Measured on Recurring Basis, Investments [7] 0 0
Rabbi Trusts Debt Securities Other [Member] | Significant Unobservable Inputs (Level 3) [Member] | PSEG Power [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair Value, Measured on Recurring Basis, Investments [7] 0 0
Rabbi Trusts Debt Securities Other [Member] | Significant Unobservable Inputs (Level 3) [Member] | Public Service Electric and Gas Company [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair Value, Measured on Recurring Basis, Investments [7] 0 0
Rabbi Trusts Debt Securities Other [Member] | Total Estimate Of Fair Value [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair Value, Measured on Recurring Basis, Investments [7] 112 114
Rabbi Trusts Debt Securities Other [Member] | Total Estimate Of Fair Value [Member] | PSEG Power [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair Value, Measured on Recurring Basis, Investments [7] 27 28
Rabbi Trusts Debt Securities Other [Member] | Total Estimate Of Fair Value [Member] | Public Service Electric and Gas Company [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair Value, Measured on Recurring Basis, Investments [7] 22 23
Rabbi Trusts Debt Securities Government Obligations [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Collateral netted against assets and liabilities 0 0
Rabbi Trusts Debt Securities Government Obligations [Member] | PSEG Power [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Collateral netted against assets and liabilities 0 0
Rabbi Trusts Debt Securities Government Obligations [Member] | Public Service Electric and Gas Company [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Collateral netted against assets and liabilities 0 0
Rabbi Trusts Debt Securities Government Obligations [Member] | Quoted Market Prices of Identical Assets (Level 1) [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair Value, Measured on Recurring Basis, Investments [7] 0 0
Rabbi Trusts Debt Securities Government Obligations [Member] | Quoted Market Prices of Identical Assets (Level 1) [Member] | PSEG Power [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair Value, Measured on Recurring Basis, Investments [7] 0 0
Rabbi Trusts Debt Securities Government Obligations [Member] | Quoted Market Prices of Identical Assets (Level 1) [Member] | Public Service Electric and Gas Company [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair Value, Measured on Recurring Basis, Investments [7] 0 0
Rabbi Trusts Debt Securities Government Obligations [Member] | Significant Other Observable Inputs (Level 2) [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair Value, Measured on Recurring Basis, Investments [7] 48 47
Rabbi Trusts Debt Securities Government Obligations [Member] | Significant Other Observable Inputs (Level 2) [Member] | PSEG Power [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair Value, Measured on Recurring Basis, Investments [7] 12 12
Rabbi Trusts Debt Securities Government Obligations [Member] | Significant Other Observable Inputs (Level 2) [Member] | Public Service Electric and Gas Company [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair Value, Measured on Recurring Basis, Investments [7] 9 9
Rabbi Trusts Debt Securities Government Obligations [Member] | Significant Unobservable Inputs (Level 3) [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair Value, Measured on Recurring Basis, Investments [7] 0 0
Rabbi Trusts Debt Securities Government Obligations [Member] | Significant Unobservable Inputs (Level 3) [Member] | PSEG Power [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair Value, Measured on Recurring Basis, Investments [7] 0 0
Rabbi Trusts Debt Securities Government Obligations [Member] | Significant Unobservable Inputs (Level 3) [Member] | Public Service Electric and Gas Company [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair Value, Measured on Recurring Basis, Investments [7] 0 0
Rabbi Trusts Debt Securities Government Obligations [Member] | Total Estimate Of Fair Value [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair Value, Measured on Recurring Basis, Investments [7] 48 47
Rabbi Trusts Debt Securities Government Obligations [Member] | Total Estimate Of Fair Value [Member] | PSEG Power [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair Value, Measured on Recurring Basis, Investments [7] 12 12
Rabbi Trusts Debt Securities Government Obligations [Member] | Total Estimate Of Fair Value [Member] | Public Service Electric and Gas Company [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair Value, Measured on Recurring Basis, Investments [7] 9 9
Rabbi Trusts US Treasury Obligations [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Collateral netted against assets and liabilities 0 0
Rabbi Trusts US Treasury Obligations [Member] | PSEG Power [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Collateral netted against assets and liabilities 0 0
Rabbi Trusts US Treasury Obligations [Member] | Public Service Electric and Gas Company [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Collateral netted against assets and liabilities 0 0
Rabbi Trusts US Treasury Obligations [Member] | Quoted Market Prices of Identical Assets (Level 1) [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair Value, Measured on Recurring Basis, Investments [7] 0 0
Rabbi Trusts US Treasury Obligations [Member] | Quoted Market Prices of Identical Assets (Level 1) [Member] | PSEG Power [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair Value, Measured on Recurring Basis, Investments [7] 0 0
Rabbi Trusts US Treasury Obligations [Member] | Quoted Market Prices of Identical Assets (Level 1) [Member] | Public Service Electric and Gas Company [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair Value, Measured on Recurring Basis, Investments [7] 0 0
Rabbi Trusts US Treasury Obligations [Member] | Significant Other Observable Inputs (Level 2) [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair Value, Measured on Recurring Basis, Investments [7] 62 57
Rabbi Trusts US Treasury Obligations [Member] | Significant Other Observable Inputs (Level 2) [Member] | PSEG Power [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair Value, Measured on Recurring Basis, Investments [7] 16 14
Rabbi Trusts US Treasury Obligations [Member] | Significant Other Observable Inputs (Level 2) [Member] | Public Service Electric and Gas Company [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair Value, Measured on Recurring Basis, Investments [7] 12 11
Rabbi Trusts US Treasury Obligations [Member] | Significant Unobservable Inputs (Level 3) [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair Value, Measured on Recurring Basis, Investments [7] 0 0
Rabbi Trusts US Treasury Obligations [Member] | Significant Unobservable Inputs (Level 3) [Member] | PSEG Power [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair Value, Measured on Recurring Basis, Investments [7] 0 0
Rabbi Trusts US Treasury Obligations [Member] | Significant Unobservable Inputs (Level 3) [Member] | Public Service Electric and Gas Company [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair Value, Measured on Recurring Basis, Investments [7] 0 0
Rabbi Trusts US Treasury Obligations [Member] | Total Estimate Of Fair Value [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair Value, Measured on Recurring Basis, Investments [7] 62 57
Rabbi Trusts US Treasury Obligations [Member] | Total Estimate Of Fair Value [Member] | PSEG Power [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair Value, Measured on Recurring Basis, Investments [7] 16 14
Rabbi Trusts US Treasury Obligations [Member] | Total Estimate Of Fair Value [Member] | Public Service Electric and Gas Company [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair Value, Measured on Recurring Basis, Investments [7] 12 11
Rabbi Trusts Equity Securities Mutual Funds [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Collateral netted against assets and liabilities 0 0
Rabbi Trusts Equity Securities Mutual Funds [Member] | PSEG Power [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Collateral netted against assets and liabilities 0 0
Rabbi Trusts Equity Securities Mutual Funds [Member] | Public Service Electric and Gas Company [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Collateral netted against assets and liabilities 0 0
Rabbi Trusts Equity Securities Mutual Funds [Member] | Quoted Market Prices of Identical Assets (Level 1) [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair Value, Measured on Recurring Basis, Investments [7] 22 28
Rabbi Trusts Equity Securities Mutual Funds [Member] | Quoted Market Prices of Identical Assets (Level 1) [Member] | PSEG Power [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair Value, Measured on Recurring Basis, Investments [7] 6 8
Rabbi Trusts Equity Securities Mutual Funds [Member] | Quoted Market Prices of Identical Assets (Level 1) [Member] | Public Service Electric and Gas Company [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair Value, Measured on Recurring Basis, Investments [7] 4 5
Rabbi Trusts Equity Securities Mutual Funds [Member] | Significant Other Observable Inputs (Level 2) [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair Value, Measured on Recurring Basis, Investments [7] 0 0
Rabbi Trusts Equity Securities Mutual Funds [Member] | Significant Other Observable Inputs (Level 2) [Member] | PSEG Power [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair Value, Measured on Recurring Basis, Investments [7] 0 0
Rabbi Trusts Equity Securities Mutual Funds [Member] | Significant Other Observable Inputs (Level 2) [Member] | Public Service Electric and Gas Company [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair Value, Measured on Recurring Basis, Investments [7] 0 0
Rabbi Trusts Equity Securities Mutual Funds [Member] | Significant Unobservable Inputs (Level 3) [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair Value, Measured on Recurring Basis, Investments [7] 0 0
Rabbi Trusts Equity Securities Mutual Funds [Member] | Significant Unobservable Inputs (Level 3) [Member] | PSEG Power [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair Value, Measured on Recurring Basis, Investments [7] 0 0
Rabbi Trusts Equity Securities Mutual Funds [Member] | Significant Unobservable Inputs (Level 3) [Member] | Public Service Electric and Gas Company [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair Value, Measured on Recurring Basis, Investments [7] 0 0
Rabbi Trusts Equity Securities Mutual Funds [Member] | Total Estimate Of Fair Value [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair Value, Measured on Recurring Basis, Investments [7] 22 28
Rabbi Trusts Equity Securities Mutual Funds [Member] | Total Estimate Of Fair Value [Member] | PSEG Power [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair Value, Measured on Recurring Basis, Investments [7] 6 8
Rabbi Trusts Equity Securities Mutual Funds [Member] | Total Estimate Of Fair Value [Member] | Public Service Electric and Gas Company [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair Value, Measured on Recurring Basis, Investments [7] 4 5
Corporate Debt Obligations [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Collateral netted against assets and liabilities 0 0
Corporate Debt Obligations [Member] | PSEG Power [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Collateral netted against assets and liabilities 0 0
Corporate Debt Obligations [Member] | Quoted Market Prices of Identical Assets (Level 1) [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair Value, Measured on Recurring Basis, Investments [7] 0 0
Corporate Debt Obligations [Member] | Quoted Market Prices of Identical Assets (Level 1) [Member] | PSEG Power [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair Value, Measured on Recurring Basis, Investments [7] 0 0
Corporate Debt Obligations [Member] | Significant Other Observable Inputs (Level 2) [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair Value, Measured on Recurring Basis, Investments [7] 527 486
Corporate Debt Obligations [Member] | Significant Other Observable Inputs (Level 2) [Member] | PSEG Power [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair Value, Measured on Recurring Basis, Investments [7] 527 486
Corporate Debt Obligations [Member] | Significant Unobservable Inputs (Level 3) [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair Value, Measured on Recurring Basis, Investments [7] 0 0
Corporate Debt Obligations [Member] | Significant Unobservable Inputs (Level 3) [Member] | PSEG Power [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair Value, Measured on Recurring Basis, Investments [7] 0 0
Corporate Debt Obligations [Member] | Total Estimate Of Fair Value [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair Value, Measured on Recurring Basis, Investments [7] 527 486
Corporate Debt Obligations [Member] | Total Estimate Of Fair Value [Member] | PSEG Power [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair Value, Measured on Recurring Basis, Investments [7] 527 486
Government Debt Securities [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Collateral netted against assets and liabilities 0 0
Government Debt Securities [Member] | PSEG Power [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Collateral netted against assets and liabilities 0 0
Government Debt Securities [Member] | Quoted Market Prices of Identical Assets (Level 1) [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair Value, Measured on Recurring Basis, Investments [7] 0 0
Government Debt Securities [Member] | Quoted Market Prices of Identical Assets (Level 1) [Member] | PSEG Power [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair Value, Measured on Recurring Basis, Investments [7] 0 0
Government Debt Securities [Member] | Significant Other Observable Inputs (Level 2) [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair Value, Measured on Recurring Basis, Investments [7] 358 352
Government Debt Securities [Member] | Significant Other Observable Inputs (Level 2) [Member] | PSEG Power [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair Value, Measured on Recurring Basis, Investments [7] 358 352
Government Debt Securities [Member] | Significant Unobservable Inputs (Level 3) [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair Value, Measured on Recurring Basis, Investments [7] 0 0
Government Debt Securities [Member] | Significant Unobservable Inputs (Level 3) [Member] | PSEG Power [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair Value, Measured on Recurring Basis, Investments [7] 0 0
Government Debt Securities [Member] | Total Estimate Of Fair Value [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair Value, Measured on Recurring Basis, Investments [7] 358 352
Government Debt Securities [Member] | Total Estimate Of Fair Value [Member] | PSEG Power [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair Value, Measured on Recurring Basis, Investments [7] 358 352
US Treasury Securities [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Collateral netted against assets and liabilities 0 0
US Treasury Securities [Member] | PSEG Power [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Collateral netted against assets and liabilities 0 0
US Treasury Securities [Member] | Quoted Market Prices of Identical Assets (Level 1) [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair Value, Measured on Recurring Basis, Investments [7] 0 0
US Treasury Securities [Member] | Quoted Market Prices of Identical Assets (Level 1) [Member] | PSEG Power [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair Value, Measured on Recurring Basis, Investments [7] 0 0
US Treasury Securities [Member] | Significant Other Observable Inputs (Level 2) [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair Value, Measured on Recurring Basis, Investments [7] 206 225
US Treasury Securities [Member] | Significant Other Observable Inputs (Level 2) [Member] | PSEG Power [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair Value, Measured on Recurring Basis, Investments [7] 206 225
US Treasury Securities [Member] | Significant Unobservable Inputs (Level 3) [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair Value, Measured on Recurring Basis, Investments [7] 0 0
US Treasury Securities [Member] | Significant Unobservable Inputs (Level 3) [Member] | PSEG Power [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair Value, Measured on Recurring Basis, Investments [7] 0 0
US Treasury Securities [Member] | Total Estimate Of Fair Value [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair Value, Measured on Recurring Basis, Investments [7] 206 225
US Treasury Securities [Member] | Total Estimate Of Fair Value [Member] | PSEG Power [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair Value, Measured on Recurring Basis, Investments [7] 206 225
Equity Securities [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Collateral netted against assets and liabilities 0 0
Equity Securities [Member] | PSEG Power [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Collateral netted against assets and liabilities 0 0
Equity Securities [Member] | Quoted Market Prices of Identical Assets (Level 1) [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair Value, Measured on Recurring Basis, Investments [7] 936 1,150
Equity Securities [Member] | Quoted Market Prices of Identical Assets (Level 1) [Member] | PSEG Power [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair Value, Measured on Recurring Basis, Investments [7] 936 1,150
Equity Securities [Member] | Significant Other Observable Inputs (Level 2) [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair Value, Measured on Recurring Basis, Investments [7] 0 1
Equity Securities [Member] | Significant Other Observable Inputs (Level 2) [Member] | PSEG Power [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair Value, Measured on Recurring Basis, Investments [7] 0 1
Equity Securities [Member] | Significant Unobservable Inputs (Level 3) [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair Value, Measured on Recurring Basis, Investments [7] 0 0
Equity Securities [Member] | Significant Unobservable Inputs (Level 3) [Member] | PSEG Power [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair Value, Measured on Recurring Basis, Investments [7] 0 0
Equity Securities [Member] | Total Estimate Of Fair Value [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair Value, Measured on Recurring Basis, Investments [7] 936 1,151
Equity Securities [Member] | Total Estimate Of Fair Value [Member] | PSEG Power [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair Value, Measured on Recurring Basis, Investments [7] $ 936 1,151
Nuclear Decommissioning Trust (NDT) Fund [Member] | PSEG Power [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
NDT Fund Foreign Currency   $ 2
[1] 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) posted that has been allocated to derivative positions, where the right of offset exists, has been offset on the Condensed Consolidated Balance Sheets. As of March 31, 2020 and December 31, 2019, PSEG Power had net cash collateral (receipts) payments to counterparties of $(11) million and $44 million, respectively. Of these net cash collateral (receipts) payments, $(13) million as of March 31, 2020 and $(2) million as of December 31, 2019 were netted against the corresponding net derivative contract positions. Of the $(13) million as of March 31, 2020, $(7) million was netted against current assets and $(6) million was netted against noncurrent assets. Of the $(2) million as of December 31, 2019, $(1) million was netted against current assets and $(1) million was netted against noncurrent assets
[2] Substantially all of PSEG 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 March 31, 2020 and December 31, 2019.
[3] Represents money market mutual funds.
[4]
Level 1—These contracts represent natural gas futures contracts executed on NYMEX, and are being valued solely on settled pricing inputs which come directly from the exchange.
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 settled prices from similar assets and liabilities from an exchange, such as NYMEX, ICE and Nodal Exchange, 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—Unobservable inputs are used for the valuation of certain contracts. See “Additional Information Regarding Level 3 Measurements” below for more information on the utilization of unobservable inputs.
[5]
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.
[6]
Represents the netting of fair value balances with the same counterparty (where the right of offset exists) and the application of collateral. See Note 13. Financial Risk Management Activities for additional detail.
[7]
As of December 31, 2019, the fair value measurement table excludes foreign currency of $2 million in the NDT Fund. The NDT Fund maintains investments in various equity and fixed income securities. The Rabbi Trust maintains investments in a Russell 3000 index fund and various fixed income securities. These securities are generally valued with prices that are either exchange provided (equity securities) or market transactions for comparable securities and/or broker quotes (fixed income securities).
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. Certain other equity securities in the NDT and Rabbi Trust Funds consist primarily of investments in money market funds which seek a high level of current income as is consistent with the preservation of capital and the maintenance of liquidity. To pursue its goals, the funds normally invest in diversified portfolios of high quality, short-term, dollar-denominated debt securities and government securities. The funds’ net asset value is priced and published daily. The Rabbi Trust’s Russell 3000 index fund is valued based on quoted prices in an active market and can be redeemed daily without restriction.
Level 2—NDT and Rabbi Trust fixed income securities include investment grade corporate bonds, collateralized mortgage obligations, asset-backed securities and certain government and U.S. Treasury obligations or Federal Agency asset-backed securities and municipal bonds 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. The preferred stocks are not actively traded on a daily basis and therefore, are also priced using an evaluated pricing methodology. Certain short-term investments are valued using observable market prices or market parameters such as time-to-maturity, coupon rate, quality rating and current yield.
v3.20.1
Fair Value Measurements (Schedule Of Quantitative Information About Level 3 Fair Value Measurements) (Detail) - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Dec. 31, 2019
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Assets, Fair Value $ 21   $ 10
Liabilities, Fair Value (2)   (3)
PSEG Power [Member]      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Assets, Fair Value 21   10
Liabilities, Fair Value (2)   (3)
Electric Load Contracts [Member] | PSEG Power [Member]      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Assets, Fair Value 21   10
Liabilities, Fair Value $ 0   $ 0
Valuation Technique used Discounted Cash flow Discounted Cash flow  
Significant Unobservable Inputs Load Shaping Cost Historic Load Variability  
Historic Load Variability 3.00%    
Electric Load Contracts [Member] | Minimum [Member] | PSEG Power [Member]      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Historic Load Variability 0.00%   0.00%
Electric Load Contracts [Member] | Maximum [Member] | PSEG Power [Member]      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Historic Load Variability 10.00%   10.00%
Gas Physical Contract [Member] | PSEG Power [Member]      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Assets, Fair Value $ 0   $ 0
Liabilities, Fair Value $ (2)   $ (3)
Valuation Technique used Discounted Cash flow Discounted Cash flow  
Significant Unobservable Inputs Average Historical Basis Average Historical Basis  
Average Historical Basis (22.00%)    
Gas Physical Contract [Member] | Minimum [Member] | PSEG Power [Member]      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Average Historical Basis (70.00%)   (50.00%)
Gas Physical Contract [Member] | Maximum [Member] | PSEG Power [Member]      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Average Historical Basis 0.00%   0.00%
v3.20.1
Fair Value Measurements (Changes In Level 3 Assets And (Liabilities) Measured At Fair Value On A Recurring Basis) (Detail) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Dec. 31, 2019
Dec. 31, 2018
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Included in Income $ 13 $ 1    
Settlements (1) (4)    
Fair Value, Net Derivative Asset (Liability), Recurring Basis, Still Held, Unrealized Gain (Loss) 12 (3)    
Net Derivative Assets (Liabilities) [Member]        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Closing Balance 19 (2)    
Net Derivative Assets (Liabilities) [Member] | PSEG Power [Member]        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value     $ 7 $ 1
Included in Income [1] 13 1    
Purchases, (Sales) 0 0    
Issuances (Settlements) [2] (1) (4)    
Transfers In (Out) [3] 0 0    
Operating Revenues [Member] | PSEG Power [Member]        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Included in Income 18 6    
Fair Value, Net Derivative Asset (Liability), Recurring Basis, Still Held, Unrealized Gain (Loss) 11 0    
Energy Costs [Member] | PSEG Power [Member]        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Included in Income 1 (3)    
Fair Value, Net Derivative Asset (Liability), Recurring Basis, Still Held, Unrealized Gain (Loss) $ (5) $ (5)    
[1]
Unrealized gains (losses) in the following table represent the change in derivative assets and liabilities still held as of March 31, 2020 and 2019.
.
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended March 31,
 
 
 
2020
 
2019
 
 
 
Total Gains (Losses)
 
Unrealized Gains (Losses)
 
Total Gains (Losses)
 
Unrealized Gains (Losses)
 
 
 
Millions
 
 
PSEG and PSEG Power
 
 
 
 
 
 
 
 
 
Operating Revenues
$
18

 
$
11

 
$
6

 
$
—

 
 
Energy Costs
(5
)
 
1

 
(5
)
 
(3
)
 
 
Total
$
13

 
$
12

 
$
1

 
$
(3
)
 
 
 
 
 
 
 
 
 
 
 
[2] settlements of $(1) million for the three months ended March 31, 2020 and $(4) million for the three months ended March 31, 2019.
[3] There were no transfers into or out of Level 3 during the three months ended March 31, 2020 and 2019.
v3.20.1
Fair Value Measurements (Narrative) (Detail) - USD ($)
$ in Millions
Mar. 31, 2020
Mar. 31, 2019
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Net assets measured at fair value on a recurring basis $ 2,700 $ 2,300
Net assets measured at fair value on a recurring basis measured using unobservable input and as Level 3 $ 19 $ 2
v3.20.1
Fair Value Measurements (Fair Value Of Debt) (Detail) - USD ($)
$ in Millions
Mar. 31, 2020
Dec. 31, 2019
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Long-Term Debt, Carrying Amount $ 15,705 $ 15,108
Long-Term Debt, Fair Value 16,758 16,723
Power - Recourse Debt [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Long-Term Debt, Carrying Amount [1] 2,841 2,840
Long-Term Debt, Fair Value [1] 2,766 3,137
Public Service Electric and Gas Company [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Long-Term Debt, Carrying Amount [1] 10,423 9,827
Long-Term Debt, Fair Value [1] 11,569 11,107
PSEG [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Long-Term Debt, Carrying Amount [1],[2] 2,441 2,441
Long-Term Debt, Fair Value [1],[2] 2,423 2,479
Variable Rate [Domain] | PSEG [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Floating Rate Term Loan $ 700 $ 700
[1] Given that these bonds do not trade actively, the fair value amounts of taxable debt securities (primarily Level 2 measurements) are generally determined by a valuation model that is based on a conventional discounted cash flow methodology. The fair value amounts above do not represent the price at which the outstanding debt may be called for redemption by each issuer under their respective debt agreements.
[2] of March 31, 2020 and December 31, 2019. The fair values of the term loan debt (Level 2 measurement) approximate the carrying value because the interest payments are based on LIBOR rates that are reset monthly and the debt is redeemable at face value by PSEG at any time.
v3.20.1
Other Income (Deductions) (Schedule Of Other Income (Deductions)) (Detail) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Component of Other Income (Deductions) [Line Items]    
NDT Fund Interest and Dividends $ 13 $ 14
Allowance for Funds Used During Construction 21 13
Solar Loan Interest 4 4
Purchase of Tax Losses (35)  
Other 1 2
Other Income (Deductions) 4 33
Public Service Electric and Gas Company [Member]    
Component of Other Income (Deductions) [Line Items]    
NDT Fund Interest and Dividends 0 0
Allowance for Funds Used During Construction 21 13
Solar Loan Interest 4 4
Purchase of Tax Losses 0  
Other 2 2
Other Income (Deductions) 27 19
PSEG Power [Member]    
Component of Other Income (Deductions) [Line Items]    
NDT Fund Interest and Dividends 13 14
Allowance for Funds Used During Construction 0 0
Solar Loan Interest 0 0
Purchase of Tax Losses (35)  
Other (1) (1)
Other Income (Deductions) (23) 13
Other Entities [Member]    
Component of Other Income (Deductions) [Line Items]    
NDT Fund Interest and Dividends [1] 0 0
Allowance for Funds Used During Construction [1] 0 0
Solar Loan Interest [1] 0 0
Purchase of Tax Losses [1] 0  
Other [1] 0 1
Other Income (Deductions) [1] $ 0 $ 1
[1]
Other consists of activity at PSEG (as parent company), Energy Holdings, Services, PSEG LI and intercompany eliminations.
v3.20.1
Income Taxes (Schedule Of Effective Tax Rates) (Detail)
 3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Income Taxes [Line Items]    
Effective tax rate 8.90% 17.60%
Public Service Electric and Gas Company [Member]    
Income Taxes [Line Items]    
Effective tax rate 19.90% 5.80%
PSEG Power [Member]    
Income Taxes [Line Items]    
Effective tax rate 122.80% 29.50%
v3.20.1
Income Taxes (Narrative) (Detail)
$ in Millions
 3 Months Ended
Mar. 31, 2020
USD ($)
Income Taxes [Line Items]  
Effective Income Tax Rate, Federal and State Statutory Income Tax Rate, Percent 28.11%
NJ surcharge tax percent for 2018 to 2019 2.50%
NJ tax surcharge percent for 2020 to 2021 1.50%
Minimum [Member]  
Income Taxes [Line Items]  
Decrease in Unrecognized Tax Benefits is Reasonably Possible $ 130
Maximum [Member]  
Income Taxes [Line Items]  
Decrease in Unrecognized Tax Benefits is Reasonably Possible $ 190
v3.20.1
Accumulated Other Comprehensive Income (Loss), Net of Tax (Changes of AOCI) (Details) - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Dec. 31, 2019
Jan. 01, 2019
Accumulated Other Comprehensive Income (Loss) [Line Items]        
Cumulative Effect Adjustment     $ (2) $ 81
Accumulated Other Comprehensive Income (Loss) [Roll Forward]        
Accumulated Other Comprehensive Income (Loss), Beginning Balance $ (489) $ (377) (377)  
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax 10 13    
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) (2) 4    
Other Comprehensive Income (Loss), net of tax 8 17    
Accumulated Other Comprehensive Income (Loss), Ending Balance (481) (441) (489)  
Net Change in Accumulated Other Comprehensive Income   (64)    
Cash Flow Hedges [Member]        
Accumulated Other Comprehensive Income (Loss) [Line Items]        
Cumulative Effect Adjustment       0
Accumulated Other Comprehensive Income (Loss) [Roll Forward]        
Accumulated Other Comprehensive Income (Loss), Beginning Balance (15) (1) (1)  
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax (4) (4) (17)  
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) 1 0 3  
Other Comprehensive Income (Loss), net of tax (3) (4)    
Accumulated Other Comprehensive Income (Loss), Ending Balance (18) (5) (15)  
Net Change in Accumulated Other Comprehensive Income   (4)    
Pension and OPEB Plans [Member]        
Accumulated Other Comprehensive Income (Loss) [Line Items]        
Cumulative Effect Adjustment       81
Accumulated Other Comprehensive Income (Loss) [Roll Forward]        
Accumulated Other Comprehensive Income (Loss), Beginning Balance (499) (360) (360)  
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax 0 (3)    
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) 3 3    
Other Comprehensive Income (Loss), net of tax 3 0    
Accumulated Other Comprehensive Income (Loss), Ending Balance (496) (441) (499)  
Net Change in Accumulated Other Comprehensive Income   (81)    
Available-for-Sale Securities [Member]        
Accumulated Other Comprehensive Income (Loss) [Line Items]        
Cumulative Effect Adjustment       0
Accumulated Other Comprehensive Income (Loss) [Roll Forward]        
Accumulated Other Comprehensive Income (Loss), Beginning Balance 25 (16) (16)  
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax 14 20    
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) (6) 1    
Other Comprehensive Income (Loss), net of tax 8 21    
Accumulated Other Comprehensive Income (Loss), Ending Balance 33 5 25  
Net Change in Accumulated Other Comprehensive Income   21    
PSEG Power [Member]        
Accumulated Other Comprehensive Income (Loss) [Line Items]        
Cumulative Effect Adjustment       69
Accumulated Other Comprehensive Income (Loss) [Roll Forward]        
Accumulated Other Comprehensive Income (Loss), Beginning Balance (401) (319) (319)  
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax 11 12    
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) (2) 4    
Other Comprehensive Income (Loss), net of tax 9 16    
Accumulated Other Comprehensive Income (Loss), Ending Balance (392) (372) (401)  
Net Change in Accumulated Other Comprehensive Income   (53)    
PSEG Power [Member] | Cash Flow Hedges [Member]        
Accumulated Other Comprehensive Income (Loss) [Line Items]        
Cumulative Effect Adjustment       0
Accumulated Other Comprehensive Income (Loss) [Roll Forward]        
Accumulated Other Comprehensive Income (Loss), Beginning Balance 0 0 0  
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax 0 0    
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) 0 0    
Other Comprehensive Income (Loss), net of tax 0 0    
Accumulated Other Comprehensive Income (Loss), Ending Balance 0 0 0  
Net Change in Accumulated Other Comprehensive Income   0    
PSEG Power [Member] | Pension and OPEB Plans [Member]        
Accumulated Other Comprehensive Income (Loss) [Line Items]        
Cumulative Effect Adjustment       69
Accumulated Other Comprehensive Income (Loss) [Roll Forward]        
Accumulated Other Comprehensive Income (Loss), Beginning Balance (420) (306) (306)  
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax 0 (3)    
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) 2 3    
Other Comprehensive Income (Loss), net of tax 2 0    
Accumulated Other Comprehensive Income (Loss), Ending Balance (418) (375) (420)  
Net Change in Accumulated Other Comprehensive Income   (69)    
PSEG Power [Member] | Available-for-Sale Securities [Member]        
Accumulated Other Comprehensive Income (Loss) [Line Items]        
Cumulative Effect Adjustment       $ 0
Accumulated Other Comprehensive Income (Loss) [Roll Forward]        
Accumulated Other Comprehensive Income (Loss), Beginning Balance 19 (13) (13)  
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax 11 15    
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) (4) 1    
Other Comprehensive Income (Loss), net of tax 7 16    
Accumulated Other Comprehensive Income (Loss), Ending Balance $ 26 3 $ 19  
Net Change in Accumulated Other Comprehensive Income   $ 16    
v3.20.1
Accumulated Other Comprehensive Income (Loss), Net of Tax (Reclassifications of AOCI) (Details) - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Dec. 31, 2019
Reclassification out of Accumulated Other Comprehensive Income [Line Items]      
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax $ 3 $ (6)  
Reclassification from Accumulated Other Comprehensive Income, Current Period, Tax (1) 2  
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) 2 (4)  
Cash Flow Hedges [Member]      
Reclassification out of Accumulated Other Comprehensive Income [Line Items]      
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, before Tax (2)   $ (4)
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) (1) 0 $ (3)
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Tax (1)    
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax (1)    
Pension and OPEB Plans [Member]      
Reclassification out of Accumulated Other Comprehensive Income [Line Items]      
Reclassification Adjustment from AOCI, Pension and OPEB, Pre-Tax (4) (5)  
Reclassification Adjustment from AOCI, Pension and OPEB, Tax 1 2  
Reclassification Adjustment from AOCI, Pension and OPEB, After-Tax (3) (3)  
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) (3) (3)  
Available-for-Sale Securities [Member]      
Reclassification out of Accumulated Other Comprehensive Income [Line Items]      
Reclassification for Available for Sale Securities, Pre-Tax 9 (1)  
Reclassification for Available for Sale Securities, Tax (3) 0  
Reclassification for Available for Sale Securities, After-Tax 6 (1)  
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) 6 (1)  
PSEG Power [Member]      
Reclassification out of Accumulated Other Comprehensive Income [Line Items]      
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax 4 (5)  
Reclassification from Accumulated Other Comprehensive Income, Current Period, Tax (2) 1  
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) 2 (4)  
PSEG Power [Member] | Cash Flow Hedges [Member]      
Reclassification out of Accumulated Other Comprehensive Income [Line Items]      
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) 0 0  
PSEG Power [Member] | Pension and OPEB Plans [Member]      
Reclassification out of Accumulated Other Comprehensive Income [Line Items]      
Reclassification Adjustment from AOCI, Pension and OPEB, Pre-Tax (3) (4)  
Reclassification Adjustment from AOCI, Pension and OPEB, Tax 1 1  
Reclassification Adjustment from AOCI, Pension and OPEB, After-Tax (2) (3)  
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) (2) (3)  
PSEG Power [Member] | Available-for-Sale Securities [Member]      
Reclassification out of Accumulated Other Comprehensive Income [Line Items]      
Reclassification for Available for Sale Securities, Pre-Tax 7 (1)  
Reclassification for Available for Sale Securities, Tax (3) 0  
Reclassification for Available for Sale Securities, After-Tax 4 (1)  
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) 4 (1)  
Interest Expense [Member] | Cash Flow Hedges [Member]      
Reclassification out of Accumulated Other Comprehensive Income [Line Items]      
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, before Tax (2)    
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Tax (1)    
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax (1)    
Non-Operating Pension and OPEB Credits (Costs) [Member] | Pension and OPEB Plans [Member]      
Reclassification out of Accumulated Other Comprehensive Income [Line Items]      
Amortization of Prior Service (Cost) Credit, Pre-Tax 6 7  
Amortization of Prior Service (Cost) Credit, Tax (2) (2)  
Amortization of Prior Service (Cost) Credit, After-Tax 4 5  
Amortization of Actuarial Loss, Pre-Tax (10) (12)  
Amortization of Actuarial Loss, Tax 3 4  
Amortization of Actuarial Loss, After-Tax (7) (8)  
Non-Operating Pension and OPEB Credits (Costs) [Member] | PSEG Power [Member] | Pension and OPEB Plans [Member]      
Reclassification out of Accumulated Other Comprehensive Income [Line Items]      
Amortization of Prior Service (Cost) Credit, Pre-Tax 5 6  
Amortization of Prior Service (Cost) Credit, Tax (1) (2)  
Amortization of Prior Service (Cost) Credit, After-Tax 4 4  
Amortization of Actuarial Loss, Pre-Tax (8) (10)  
Amortization of Actuarial Loss, Tax 2 3  
Amortization of Actuarial Loss, After-Tax (6) (7)  
Net Gains (Losses) on Trust Investments [Member] | Available-for-Sale Securities [Member]      
Reclassification out of Accumulated Other Comprehensive Income [Line Items]      
Reclassification for Available for Sale Securities, Pre-Tax 9 (1)  
Reclassification for Available for Sale Securities, Tax (3) 0  
Reclassification for Available for Sale Securities, After-Tax 6 (1)  
Net Gains (Losses) on Trust Investments [Member] | PSEG Power [Member] | Available-for-Sale Securities [Member]      
Reclassification out of Accumulated Other Comprehensive Income [Line Items]      
Reclassification for Available for Sale Securities, Pre-Tax 7 (1)  
Reclassification for Available for Sale Securities, Tax (3) 0  
Reclassification for Available for Sale Securities, After-Tax $ 4 $ (1)  
v3.20.1
Earnings Per Share (EPS) And Dividends (Basic And Diluted Earnings Per Share Computation) (Detail) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
 3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Net Income $ 448 $ 700
Weighted Average Common Shares Outstanding, Basic (shares) 504 504
Effect of Stock Based Compensation Awards, Basic (shares) 0 0
Total Shares, Basic (shares) 504 504
Net Income, Basic (dollars per share) $ 0.89 $ 1.39
Weighted Average Common Shares Outstanding, Diluted (shares) 504 504
Effect of Stock Based Compensation Awards, Diluted (shares) 3 3
Total Shares, Diluted (shares) 507 507
Net Income, Diluted (dollars per share) $ 0.88 $ 1.38
v3.20.1
Earnings Per Share (EPS) And Dividends (Dividend Payments On Common Stock) (Detail) - USD ($)
$ / shares in Units, $ in Millions
 3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Common Stock, Dividends, Per Share, Cash Paid $ 0.49 $ 0.47
Dividend Payments on Common Stock $ 248 $ 238
v3.20.1
Financial Information By Business Segments (Financial Information By Business Segments) (Detail) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Dec. 31, 2019
Segment Reporting Information [Line Items]      
Operating Revenues $ 2,781 $ 2,980  
Net Income 448 700  
Property, Plant and Equipment, Additions 720 795  
Total Assets 48,365   $ 47,730
Investments in Equity Method Subsidiaries 69   67
Public Service Electric and Gas Company [Member]      
Segment Reporting Information [Line Items]      
Operating Revenues 1,883 2,032  
PSEG Power [Member]      
Segment Reporting Information [Line Items]      
Operating Revenues 1,220 1,416  
Other [Member]      
Segment Reporting Information [Line Items]      
Operating Revenues 156 141  
Operating Segments [Member] | Public Service Electric and Gas Company [Member]      
Segment Reporting Information [Line Items]      
Operating Revenues 1,883 2,032  
Net Income 440 403  
Property, Plant and Equipment, Additions 620 625  
Total Assets 33,627   33,266
Investments in Equity Method Subsidiaries 0   0
Operating Segments [Member] | PSEG Power [Member]      
Segment Reporting Information [Line Items]      
Operating Revenues 1,220 1,416  
Net Income 13 296  
Property, Plant and Equipment, Additions 97 167  
Total Assets 12,847   12,805
Investments in Equity Method Subsidiaries 68   66
Operating Segments [Member] | Other [Member]      
Segment Reporting Information [Line Items]      
Operating Revenues [1] 156 141  
Net Income [1] (5) 1  
Property, Plant and Equipment, Additions [1] 3 3  
Total Assets [1] 3,296   2,715
Investments in Equity Method Subsidiaries [1] 1   1
Eliminations [Member]      
Segment Reporting Information [Line Items]      
Operating Revenues [2] (478) (609)  
Net Income [2] 0    
Property, Plant and Equipment, Additions [2] 0 0  
Total Assets [2] (1,405)   (1,056)
Investments in Equity Method Subsidiaries [2] 0   0
PSEG Power [Member]      
Segment Reporting Information [Line Items]      
Operating Revenues 1,220 1,416  
Net Income 13 $ 296  
Total Assets $ 12,847   $ 12,805
[1]
Includes amounts applicable to Energy Holdings and PSEG LI, which are below the quantitative threshold for separate disclosure as reportable segments. Other also includes amounts applicable to PSEG (parent company) and Services.
[2] Intercompany eliminations primarily relate to intercompany transactions between PSE&G and PSEG Power. For a further discussion of the intercompany transactions between PSE&G and PSEG Power, see Note 20. Related-Party Transactions.
v3.20.1
Related-Party Transactions (Schedule Of Related Party Transactions, Revenue) (Detail) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Public Service Electric and Gas Company [Member]    
Related Party Transaction [Line Items]    
Net Billings from Power primarily through BGS and BGSS $ 490 [1] $ 633
Administrative Billings from Services [2] 78 75
Total Billings from Affiliates 568 708
PSEG Power [Member]    
Related Party Transaction [Line Items]    
Net Billings to PSE&G primarily through BGS and BGSS [1] 490 633
Administrative Billings from Services [2] $ 45 $ 45
[1] PSE&G has entered into a requirements contract with PSEG Power under which PSEG Power provides the gas supply services needed to meet PSE&G’s BGSS and other contractual requirements. PSEG Power has also entered into contracts to supply energy, capacity and ancillary services to PSE&G through the BGS auction process and sells ZECs to PSE&G under the ZEC program. The rates in the BGS and BGSS contracts and for the ZEC sales are prescribed by the BPU. BGS and BGSS sales are billed and settled on a monthly basis. ZEC sales are billed on a monthly basis and settled annually following completion of each energy year. In addition, PSEG Power and PSE&G provide certain technical services for each other generally at cost in compliance with FERC and BPU affiliate rules
[2]
Services provides and bills administrative services to PSE&G and PSEG Power at cost. In addition, PSE&G and PSEG Power have other payables to Services, including amounts related to certain common costs, which Services pays on behalf of each of the operating companies.
v3.20.1
Related-Party Transactions (Schedule Of Related Party Transactions, Payables) (Detail) - Public Service Electric and Gas Company [Member] - USD ($)
$ in Millions
Mar. 31, 2020
Dec. 31, 2019
Related Party Transaction [Line Items]    
Receivable From PSEG [1] $ 0 $ 1
Payable To PSEG Power [2] 284 307
Payable To Services [3] 68 83
Payable to PSEG [1] 51 0
Accounts Payable - Affiliated Companies 403 390
Working Capital Advances to Services [4] 33 33
Long-Term Accrued Taxes Payable $ 114 $ 115
[1]
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 NOLs 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.
[2] PSE&G has entered into a requirements contract with PSEG Power under which PSEG Power provides the gas supply services needed to meet PSE&G’s BGSS and other contractual requirements. PSEG Power has also entered into contracts to supply energy, capacity and ancillary services to PSE&G through the BGS auction process and sells ZECs to PSE&G under the ZEC program. The rates in the BGS and BGSS contracts and for the ZEC sales are prescribed by the BPU. BGS and BGSS sales are billed and settled on a monthly basis. ZEC sales are billed on a monthly basis and settled annually following completion of each energy year. In addition, PSEG Power and PSE&G provide certain technical services for each other generally at cost in compliance with FERC and BPU affiliate rules
[3]
Services provides and bills administrative services to PSE&G and PSEG Power at cost. In addition, PSE&G and PSEG Power have other payables to Services, including amounts related to certain common costs, which Services pays on behalf of each of the operating companies.
[4]
PSE&G and PSEG Power have advanced working capital to Services. The amounts are included in Other Noncurrent Assets on PSE&G’s and PSEG Power’s Condensed Consolidated Balance Sheets.
v3.20.1
Related-Party Transactions (Schedule Of Related Party Transactions, Receivables) (Detail) - PSEG Power [Member] - USD ($)
$ in Millions
Mar. 31, 2020
Dec. 31, 2019
Related Party Transaction [Line Items]    
Receivable From PSEG [1] $ 75 $ 101
Receivable from PSE&G [2] 284 307
Accounts Receivable - Affiliated Companies 359 408
Payable To Services [3] 24 5
Accounts Payable - Affiliated Companies 24 5
Short-Term Loan to Affiliate [4] 514 149
Working Capital Advances to Services [5] 17 17
Long-Term Accrued Taxes Payable $ 113 $ 115
[1]
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 NOLs 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.
[2] PSE&G has entered into a requirements contract with PSEG Power under which PSEG Power provides the gas supply services needed to meet PSE&G’s BGSS and other contractual requirements. PSEG Power has also entered into contracts to supply energy, capacity and ancillary services to PSE&G through the BGS auction process and sells ZECs to PSE&G under the ZEC program. The rates in the BGS and BGSS contracts and for the ZEC sales are prescribed by the BPU. BGS and BGSS sales are billed and settled on a monthly basis. ZEC sales are billed on a monthly basis and settled annually following completion of each energy year. In addition, PSEG Power and PSE&G provide certain technical services for each other generally at cost in compliance with FERC and BPU affiliate rules
[3]
Services provides and bills administrative services to PSE&G and PSEG Power at cost. In addition, PSE&G and PSEG Power have other payables to Services, including amounts related to certain common costs, which Services pays on behalf of each of the operating companies.
[4]
PSEG 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.
[5]
PSE&G and PSEG Power have advanced working capital to Services. The amounts are included in Other Noncurrent Assets on PSE&G’s and PSEG Power’s Condensed Consolidated Balance Sheets.