Cover
Cover - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Feb. 19, 2021 | Jun. 30, 2020 | |
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 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 Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
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 Public Float | $ 24,648,067,675 | ||
Entity Common Stock, Shares Outstanding | 505,093,089 | ||
Documents Incorporated by Reference | Part of Form 10-K of Documents Incorporated by Reference III Portions of the definitive Proxy Statement for the 2021 Annual Meeting of Stockholders of Public Service Enterprise Group Incorporated, which definitive Proxy Statement is expected to be filed with the Securities and Exchange Commission on or about March 15, 2021, as specified herein. | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0000788784 | ||
Current Fiscal Year End Date | --12-31 | ||
ICFR Auditor Attestation Flag | true | ||
Public Service Electric and Gas Company | |||
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2020 | ||
Document Transition Report | false | ||
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 Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 132,450,344 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0000081033 | ||
Current Fiscal Year End Date | --12-31 | ||
ICFR Auditor Attestation Flag | false | ||
PSEG Power LLC | |||
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2020 | ||
Document Transition Report | false | ||
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 Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0001158659 | ||
Current Fiscal Year End Date | --12-31 | ||
ICFR Auditor Attestation Flag | false | ||
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 | ||
9.25% First and Refunding Mortgage Bonds, Series CC, due 2021 | Public Service Electric and Gas Company | |||
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 | ||
8.00% First and Refunding Mortgage Bonds, due 2037 | Public Service Electric and Gas Company | |||
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 | ||
5.00% First and Refunding Mortgage Bonds, due 2037 | Public Service Electric and Gas Company | |||
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 | ||
8.625% Senior Notes, due 2031 | PSEG Power LLC | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | 8.625% Senior Notes, due 2031 | ||
Trading Symbol | PEG31 | ||
Security Exchange Name | NYSE |
Consolidated Statements Of Oper
Consolidated Statements Of Operations - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |||
Operating Revenues | $ 9,603 | $ 10,076 | $ 9,696 | ||
Operating Expenses [Abstract] | |||||
Energy Costs | 3,056 | 3,372 | 3,225 | ||
Operation and Maintenance | 3,115 | 3,111 | 3,069 | ||
Depreciation and Amortization | 1,285 | 1,248 | 1,158 | ||
Gain (Loss) on Disposition of Assets | (123) | 402 | (54) | ||
Total Operating Expenses | 7,333 | 8,133 | 7,398 | ||
OPERATING INCOME | 2,270 | 1,943 | 2,298 | ||
Income from Equity Method Investments | 14 | 14 | 15 | ||
Net Gains (Losses) on Trust Investments | 253 | 260 | (143) | ||
Other Income (Deductions) | 115 | 125 | 85 | ||
Non-Operating Pension and Other Postretirement Plan Credits (Costs) | 249 | 177 | 76 | ||
Interest Expense | (600) | (569) | (476) | ||
Income (Loss) before Income Taxes | 2,301 | 1,950 | 1,855 | ||
Income Tax (Expense) Benefit | (396) | (257) | (417) | ||
Net Income | $ 1,905 | [1] | $ 1,693 | [1] | $ 1,438 |
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: | |||||
BASIC | 504 | 504 | 504 | ||
DILUTED | 507 | 507 | 507 | ||
EARNINGS PER SHARE: | |||||
NET INCOME, BASIC | $ 3.78 | $ 3.35 | $ 2.85 | ||
NET INCOME, DILUTED | $ 3.76 | $ 3.33 | $ 2.83 | ||
Public Service Electric and Gas Company | |||||
Operating Revenues | $ 6,608 | $ 6,625 | $ 6,471 | ||
Operating Expenses [Abstract] | |||||
Energy Costs | 2,469 | 2,738 | 2,520 | ||
Operation and Maintenance | 1,614 | 1,581 | 1,575 | ||
Depreciation and Amortization | 887 | 837 | 770 | ||
Gain (Loss) on Disposition of Assets | (1) | 0 | 0 | ||
Total Operating Expenses | 4,969 | 5,156 | 4,865 | ||
OPERATING INCOME | 1,639 | 1,469 | 1,606 | ||
Net Gains (Losses) on Trust Investments | 3 | 2 | (1) | ||
Other Income (Deductions) | 108 | 83 | 80 | ||
Non-Operating Pension and Other Postretirement Plan Credits (Costs) | 205 | 150 | 59 | ||
Interest Expense | (388) | (361) | (333) | ||
Income (Loss) before Income Taxes | 1,567 | 1,343 | 1,411 | ||
Income Tax (Expense) Benefit | (240) | (93) | (344) | ||
Net Income | 1,327 | 1,250 | 1,067 | ||
PSEG Power LLC | |||||
Operating Revenues | 3,634 | 4,385 | 4,146 | ||
Operating Expenses [Abstract] | |||||
Energy Costs | 1,821 | 2,118 | 2,197 | ||
Operation and Maintenance | 964 | 1,040 | 1,053 | ||
Depreciation and Amortization | 368 | 377 | 354 | ||
Gain (Loss) on Disposition of Assets | (122) | 402 | (54) | ||
Total Operating Expenses | 3,031 | 3,937 | 3,550 | ||
OPERATING INCOME | 603 | 448 | 596 | ||
Income from Equity Method Investments | 14 | 14 | 15 | ||
Net Gains (Losses) on Trust Investments | 241 | 253 | (140) | ||
Other Income (Deductions) | 12 | 54 | 21 | ||
Non-Operating Pension and Other Postretirement Plan Credits (Costs) | 33 | 21 | 15 | ||
Interest Expense | (121) | (119) | (76) | ||
Income (Loss) before Income Taxes | 782 | 671 | 431 | ||
Income Tax (Expense) Benefit | (188) | (203) | (66) | ||
Net Income | $ 594 | $ 468 | $ 365 | ||
[1] | Includes an after-tax gain of $86 million in the year ended December 31, 2020 related to the sale of PSEG Power’s interest in the Yards Creek generation facility and an after-tax loss of $286 million in the year ended December 31, 2019 related to the sale of PSEG Power’s ownership interests in the Keystone and Conemaugh fossil generation plants. See Note 4. Early Plant Retirements/Asset Dispositions for additional information. |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |||
Net Income | $ 1,905 | [1] | $ 1,693 | [1] | $ 1,438 |
Other Comprehensive Income (Loss), net of tax | |||||
Unrealized Gains (Losses) on Available-for-Sale Securities, net of tax (expense) benefit for the years ended | 25 | 41 | (17) | ||
Unrealized Gains (Losses) on Cash Flow Hedges, net of tax (expense) benefit for the years ended | 6 | (14) | (1) | ||
Pension/OPEB adjustment, net of tax (expense) benefit for the years ended | (46) | (58) | 46 | ||
Other Comprehensive Income (Loss), net of tax | (15) | (31) | 28 | ||
Comprehensive Income | 1,890 | 1,662 | 1,466 | ||
Public Service Electric and Gas Company | |||||
Net Income | 1,327 | 1,250 | 1,067 | ||
Other Comprehensive Income (Loss), net of tax | |||||
Unrealized Gains (Losses) on Available-for-Sale Securities, net of tax (expense) benefit for the years ended | 1 | 3 | (1) | ||
Other Comprehensive Income (Loss), net of tax | 1 | 3 | (1) | ||
Comprehensive Income | 1,328 | 1,253 | 1,066 | ||
PSEG Power LLC | |||||
Net Income | 594 | 468 | 365 | ||
Other Comprehensive Income (Loss), net of tax | |||||
Unrealized Gains (Losses) on Available-for-Sale Securities, net of tax (expense) benefit for the years ended | 21 | 32 | (13) | ||
Pension/OPEB adjustment, net of tax (expense) benefit for the years ended | (39) | (45) | 41 | ||
Other Comprehensive Income (Loss), net of tax | (18) | (13) | 28 | ||
Comprehensive Income | $ 576 | $ 455 | $ 393 | ||
[1] | Includes an after-tax gain of $86 million in the year ended December 31, 2020 related to the sale of PSEG Power’s interest in the Yards Creek generation facility and an after-tax loss of $286 million in the year ended December 31, 2019 related to the sale of PSEG Power’s ownership interests in the Keystone and Conemaugh fossil generation plants. See Note 4. Early Plant Retirements/Asset Dispositions for additional information. |
Consolidated Statements Of Co_2
Consolidated Statements Of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Available-for-Sale Securities, tax | $ (16) | $ (26) | $ 11 |
Change in Fair Value of Derivative Instruments, tax | (2) | 6 | 1 |
Pension/OPEB adjustment, tax | 18 | 18 | (18) |
Public Service Electric and Gas Company | |||
Available-for-Sale Securities, tax | 0 | (1) | 1 |
PSEG Power LLC | |||
Available-for-Sale Securities, tax | (15) | 9 | (22) |
Pension/OPEB adjustment, tax | $ 16 | $ 13 | $ (16) |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | |
CURRENT ASSETS | |||
Cash and Cash Equivalents | $ 543 | $ 147 | |
Accounts Receivable, net of allowances | 1,410 | 1,313 | |
Tax Receivable | 63 | 21 | |
Unbilled Revenues | 229 | 239 | |
Fuel | 277 | 310 | |
Materials and Supplies, net | 601 | 587 | |
Prepayments | 51 | 79 | |
Derivative Contracts | 60 | 113 | |
Regulatory Assets | 369 | 351 | |
Assets Held for Sale | 0 | 30 | |
Other | 27 | 41 | |
Total Current Assets | 3,630 | 3,231 | |
PROPERTY, PLANT AND EQUIPMENT | 48,569 | 45,944 | |
Less: Accumulated Depreciation and Amortization | (10,984) | (10,100) | |
Net Property, Plant and Equipment | 37,585 | 35,844 | |
NONCURRENT ASSETS | |||
Regulatory Assets | 3,872 | 3,677 | |
Operating Lease, Right-of-Use Asset | 262 | 282 | |
Long-Term Investments | 536 | 812 | |
Nuclear Decommissioning Trust (NDT) Fund | 2,501 | 2,216 | |
Income Taxes Receivable, Noncurrent | 0 | 150 | |
Long-Term Receivable of VIEs | 945 | 813 | |
Rabbi Trust | 266 | 246 | |
Other Intangibles | 158 | 149 | |
Derivative Contracts | 9 | 24 | |
Other | 286 | 286 | |
Total Noncurrent Assets | 8,835 | 8,655 | |
Total Assets | 50,050 | 47,730 | |
CURRENT LIABILITIES | |||
Long-Term Debt Due Within One Year | 1,684 | 1,365 | |
Commercial Paper and Loans | 1,063 | 1,115 | |
Accounts Payable | 1,332 | 1,358 | |
Derivative Contracts | 21 | 36 | |
Accrued Interest | 126 | 116 | |
Accrued Taxes | 124 | 41 | |
Clean Energy Program | 143 | 143 | |
Obligation to Return Cash Collateral | 98 | 119 | |
Regulatory Liabilities | 294 | 234 | |
Other | 637 | 520 | |
Total Current Liabilities | 5,522 | 5,047 | |
NONCURRENT LIABILITIES | |||
Deferred Income Taxes and Investment Tax Credits (ITC) | 6,502 | 6,256 | |
Regulatory Liabilities | 2,707 | 3,002 | |
Operating Leases | 252 | 273 | |
Asset Retirement Obligations | 1,212 | 1,087 | |
Other Postretirement Benefit (OPEB) Costs | 730 | 734 | |
OPEB Costs of Servco | 699 | 626 | |
Accrued Pension Costs | 1,128 | 952 | |
Accrued Pension Costs of Servco | 226 | 171 | |
Environmental Costs | 286 | 349 | |
Derivative Contracts | 4 | 1 | |
Long-Term Accrued Taxes | 88 | 182 | |
Other | 214 | 218 | |
Total Noncurrent Liabilities | 14,048 | 13,851 | |
COMMITMENTS AND CONTINGENT LIABILITIES | |||
LONG-TERM DEBT | |||
Total Long-Term Debt | 14,496 | 13,743 | |
STOCKHOLDER'S EQUITY | |||
Common Stock | 5,031 | 5,003 | |
Treasury Stock, at cost | (861) | (831) | |
Retained Earnings | 12,318 | 11,406 | |
Accumulated Other Comprehensive Income (Loss) | (504) | (489) | |
Total Stockholder's Equity | 15,984 | 15,089 | |
Total Capitalization | 30,480 | 28,832 | |
TOTAL LIABILITIES AND CAPITALIZATION | 50,050 | 47,730 | |
Public Service Electric and Gas Company | |||
CURRENT ASSETS | |||
Cash and Cash Equivalents | 204 | 21 | |
Accounts Receivable, net of allowances | 1,004 | 901 | |
Accounts Receivable-Affiliated Companies | 0 | 1 | |
Unbilled Revenues | 229 | 239 | |
Materials and Supplies, net | 217 | 213 | |
Prepayments | 14 | 35 | |
Regulatory Assets | 369 | 351 | |
Other | 13 | 28 | |
Total Current Assets | 2,050 | 1,789 | |
PROPERTY, PLANT AND EQUIPMENT | 36,300 | 33,900 | |
Less: Accumulated Depreciation and Amortization | (7,149) | (6,623) | |
Net Property, Plant and Equipment | 29,151 | 27,277 | |
NONCURRENT ASSETS | |||
Regulatory Assets | 3,872 | 3,677 | |
Operating Lease, Right-of-Use Asset | 99 | 98 | |
Long-Term Investments | 222 | 248 | |
Rabbi Trust | 51 | 48 | |
Other | 136 | 129 | |
Total Noncurrent Assets | 4,380 | 4,200 | |
Total Assets | 35,581 | 33,266 | |
CURRENT LIABILITIES | |||
Long-Term Debt Due Within One Year | 434 | 259 | |
Commercial Paper and Loans | 100 | 362 | |
Accounts Payable | 671 | 639 | |
Accounts Payable-Affiliated Companies | 479 | 390 | |
Accrued Interest | 101 | 91 | |
Clean Energy Program | 143 | 143 | |
Obligation to Return Cash Collateral | 98 | 119 | |
Regulatory Liabilities | 294 | 234 | |
Other | 530 | 436 | |
Total Current Liabilities | 2,850 | 2,673 | |
NONCURRENT LIABILITIES | |||
Deferred Income Taxes and Investment Tax Credits (ITC) | 4,524 | 4,189 | |
Regulatory Liabilities | 2,707 | 3,002 | |
Operating Leases | 88 | 87 | |
Asset Retirement Obligations | 314 | 303 | |
Other Postretirement Benefit (OPEB) Costs | 485 | 495 | |
Accrued Pension Costs | 612 | 501 | |
Environmental Costs | 236 | 294 | |
Long-Term Accrued Taxes | 7 | 115 | |
Other | 154 | 136 | |
Total Noncurrent Liabilities | 9,127 | 9,122 | |
COMMITMENTS AND CONTINGENT LIABILITIES | |||
LONG-TERM DEBT | |||
Total Long-Term Debt | 10,475 | 9,568 | |
STOCKHOLDER'S EQUITY | |||
Common Stock | 892 | 892 | |
Contributed Capital | 1,170 | 1,095 | |
Basis Adjustment | 986 | 986 | |
Retained Earnings | 10,078 | 8,928 | |
Accumulated Other Comprehensive Income (Loss) | 3 | 2 | |
Total Stockholder's Equity | 13,129 | 11,903 | |
Total Capitalization | 23,604 | 21,471 | |
TOTAL LIABILITIES AND CAPITALIZATION | 35,581 | 33,266 | |
PSEG Power LLC | |||
CURRENT ASSETS | |||
Cash and Cash Equivalents | 27 | 21 | |
Accounts Receivable, net of allowances | 328 | 309 | |
Accounts Receivable-Affiliated Companies | 317 | 408 | |
Short-Term Loan to Affiliate | [1] | 161 | 149 |
Fuel | 277 | 310 | |
Materials and Supplies, net | 382 | 372 | |
Prepayments | 16 | 11 | |
Derivative Contracts | [2] | 60 | 113 |
Assets Held for Sale | 0 | 28 | |
Other | 2 | 5 | |
Total Current Assets | 1,570 | 1,726 | |
PROPERTY, PLANT AND EQUIPMENT | 11,872 | 11,699 | |
Less: Accumulated Depreciation and Amortization | (3,624) | (3,273) | |
Net Property, Plant and Equipment | 8,248 | 8,426 | |
NONCURRENT ASSETS | |||
Operating Lease, Right-of-Use Asset | 61 | 71 | |
Long-Term Investments | 64 | 66 | |
Nuclear Decommissioning Trust (NDT) Fund | 2,501 | 2,216 | |
Rabbi Trust | 66 | 62 | |
Other Intangibles | 158 | 149 | |
Derivative Contracts | [2] | 9 | 24 |
Other | 27 | 65 | |
Total Noncurrent Assets | 2,886 | 2,653 | |
Total Assets | 12,704 | 12,805 | |
CURRENT LIABILITIES | |||
Long-Term Debt Due Within One Year | 950 | 406 | |
Accounts Payable | 459 | 505 | |
Derivative Contracts | [2] | 21 | 31 |
Accounts Payable-Affiliated Companies | 13 | 5 | |
Accrued Interest | 16 | 21 | |
Other | 101 | 91 | |
Total Current Liabilities | 1,560 | 1,059 | |
NONCURRENT LIABILITIES | |||
Deferred Income Taxes and Investment Tax Credits (ITC) | 1,936 | 1,876 | |
Operating Leases | 51 | 62 | |
Asset Retirement Obligations | 895 | 781 | |
Other Postretirement Benefit (OPEB) Costs | 197 | 192 | |
Accrued Pension Costs | 321 | 284 | |
Derivative Contracts | [2] | 4 | 1 |
Long-Term Accrued Taxes | 57 | 115 | |
Other | 79 | 111 | |
Total Noncurrent Liabilities | 3,540 | 3,422 | |
COMMITMENTS AND CONTINGENT LIABILITIES | |||
LONG-TERM DEBT | |||
Total Long-Term Debt | 1,392 | 2,434 | |
STOCKHOLDER'S EQUITY | |||
Contributed Capital | 2,310 | 2,214 | |
Basis Adjustment | (986) | (986) | |
Retained Earnings | 5,307 | 5,063 | |
Accumulated Other Comprehensive Income (Loss) | (419) | (401) | |
Total Stockholder's Equity | 6,212 | 5,890 | |
TOTAL LIABILITIES AND CAPITALIZATION | $ 12,704 | $ 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 December 31, 2020 and 2019. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Accounts Receivable, allowances | $ 196 | $ 60 |
Unbilled Revenues, allowance for credit losses | $ 10 | |
Common Stock, issued | 534,000,000 | 534,000,000 |
Common Stock, authorized | 1,000,000,000 | 1,000,000,000 |
Treasury Stock, Shares | 30,000,000 | 30,000,000 |
Public Service Electric and Gas Company | ||
Accounts Receivable, allowances | $ 196 | $ 60 |
Unbilled Revenues, allowance for credit losses | $ 10 | |
Common Stock, issued | 132,000,000 | 132,000,000 |
Common Stock, authorized | 150,000,000 | 150,000,000 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||
Net Income | $ 1,905 | [1] | $ 1,693 | [1] | $ 1,438 |
Adjustments to Reconcile Net Income to Net Cash Flows from Operating Activities: | |||||
Depreciation and Amortization | 1,285 | 1,248 | 1,158 | ||
Amortization of Nuclear Fuel | 184 | 178 | 187 | ||
Gain (Loss) on Disposition of Assets | (123) | 402 | (54) | ||
Emission Allowances and Renewable Energy Credit Compliance Accrual | 151 | 108 | 97 | ||
Provision for Deferred Income Taxes (Other than Leases) and ITC | 139 | 180 | 568 | ||
Non-Cash Employee Benefit Plan Costs | (105) | (48) | 70 | ||
Leveraged Lease Income, Adjusted for Rents Received and Deferred Taxes | (135) | 18 | (144) | ||
Net Realized and Unrealized (Gains) Losses on Energy Contracts and Other Derivatives | 80 | (290) | 116 | ||
Net Change in Regulatory Assets and Liabilities | (101) | 25 | (153) | ||
Cost of Removal | (106) | (108) | (160) | ||
Net Realized (Gains) Losses and (Income) Expense from NDT Fund | (278) | (296) | 98 | ||
Net Change in Certain Current Assets and Liabilities: | |||||
Margin Deposits | (10) | 349 | (247) | ||
Tax Receivable | 107 | 77 | 17 | ||
Accrued Taxes | 124 | (9) | (69) | ||
Other Current Assets and Liabilities | 73 | (145) | 70 | ||
Employee Benefit Plan Funding and Related Payments | (18) | (39) | (101) | ||
Other | (70) | 36 | 22 | ||
Net Cash Provided By (Used In) Operating Activities | 3,102 | 3,379 | 2,913 | ||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||
Additions to Property, Plant and Equipment | (2,923) | (3,166) | (3,912) | ||
Purchase of Emissions Allowances and RECs | (111) | (98) | (146) | ||
Proceeds from Sale of Available-for-Sale Securities | 2,234 | 1,787 | 1,501 | ||
Investments in Available-for-Sale Securities | (2,250) | (1,814) | (1,473) | ||
Other | 73 | 76 | 83 | ||
Net Cash Provided By (Used In) Investing Activities | (2,676) | (3,145) | (3,916) | ||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||
Net Change in Commercial Paper and Loans | (352) | 99 | 474 | ||
Issuance of Long-Term Debt | 2,450 | 1,900 | 2,750 | ||
Redemption of Long-Term Debt | (1,365) | (1,250) | (1,350) | ||
Cash Dividend Paid | (991) | (950) | (910) | ||
Other | (72) | (56) | (77) | ||
Net Cash Provided By (Used In) Financing Activities | (30) | (257) | 887 | ||
Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash | 396 | (23) | (116) | ||
Cash, Cash Equivalents and Restricted Cash, beginning | 176 | 199 | 315 | ||
Cash, Cash Equivalents and Restricted Cash, ending | 572 | 176 | 199 | ||
Supplemental Disclosure of Cash Flow Information: | |||||
Income Taxes Paid (Received) | 297 | 41 | 99 | ||
Interest Paid, Net of Amounts Capitalized | 568 | 539 | 454 | ||
Accrued Property, Plant and Equipment Expenditures | 387 | 499 | 517 | ||
Proceeds from Sale of Property, Plant, and Equipment | 301 | 70 | 31 | ||
Proceeds from Short-term Debt | 800 | 0 | 0 | ||
Repayments of Short-term Debt | (500) | 0 | 0 | ||
Public Service Electric and Gas Company | |||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||
Net Income | 1,327 | 1,250 | 1,067 | ||
Adjustments to Reconcile Net Income to Net Cash Flows from Operating Activities: | |||||
Depreciation and Amortization | 887 | 837 | 770 | ||
Depreciation and Amortization | 770 | ||||
Gain (Loss) on Disposition of Assets | (1) | 0 | 0 | ||
Provision for Deferred Income Taxes (Other than Leases) and ITC | 53 | (28) | 405 | ||
Non-Cash Employee Benefit Plan Costs | (103) | (62) | 37 | ||
Net Change in Regulatory Assets and Liabilities | (101) | 25 | (153) | ||
Cost of Removal | (106) | (108) | (160) | ||
Net Change in Certain Current Assets and Liabilities: | |||||
Accounts Receivable and Unbilled Revenues | (100) | (18) | 65 | ||
Fuel, Materials and Supplies | (2) | (14) | 1 | ||
Prepayments | 21 | (9) | 14 | ||
Accounts Payable | 44 | (59) | 64 | ||
Accounts Receivable/Payable-Affiliated Companies, net | 80 | 203 | (139) | ||
Other Current Assets and Liabilities | 60 | 62 | 5 | ||
Employee Benefit Plan Funding and Related Payments | (4) | (21) | (85) | ||
Other | (103) | (23) | (38) | ||
Net Cash Provided By (Used In) Operating Activities | 1,953 | 2,035 | 1,853 | ||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||
Additions to Property, Plant and Equipment | (2,507) | (2,542) | (2,896) | ||
Proceeds from Sale of Available-for-Sale Securities | 40 | 36 | 20 | ||
Investments in Available-for-Sale Securities | (40) | (34) | (22) | ||
Solar Loan Investments | 13 | 8 | (5) | ||
Other | 12 | 10 | 9 | ||
Net Cash Provided By (Used In) Investing Activities | (2,482) | (2,522) | (2,894) | ||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||
Net Change in Commercial Paper and Loans | (262) | 90 | 272 | ||
Issuance of Long-Term Debt | 1,350 | 1,150 | 1,350 | ||
Redemption of Long-Term Debt | (259) | (500) | (750) | ||
Contributed Capital | 75 | 0 | 0 | ||
Cash Dividend Paid | (175) | (250) | 0 | ||
Other | (17) | (14) | (14) | ||
Net Cash Provided By (Used In) Financing Activities | 712 | 476 | 858 | ||
Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash | 183 | (11) | (183) | ||
Cash, Cash Equivalents and Restricted Cash, beginning | 50 | 61 | 244 | ||
Cash, Cash Equivalents and Restricted Cash, ending | 233 | 50 | 61 | ||
Supplemental Disclosure of Cash Flow Information: | |||||
Income Taxes Paid (Received) | 157 | (48) | 94 | ||
Interest Paid, Net of Amounts Capitalized | 369 | 343 | 318 | ||
Accrued Property, Plant and Equipment Expenditures | 323 | 335 | 350 | ||
PSEG Power LLC | |||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||
Net Income | 594 | 468 | 365 | ||
Adjustments to Reconcile Net Income to Net Cash Flows from Operating Activities: | |||||
Depreciation and Amortization | 368 | 377 | 354 | ||
Depreciation and Amortization | 354 | ||||
Amortization of Nuclear Fuel | 184 | 178 | 187 | ||
Gain (Loss) on Disposition of Assets | (122) | 402 | (54) | ||
Emission Allowances and Renewable Energy Credit Compliance Accrual | 151 | 108 | 97 | ||
Provision for Deferred Income Taxes (Other than Leases) and ITC | 60 | 248 | 206 | ||
Interest Accretion on Asset Retirement Obligation | 42 | 40 | 41 | ||
Non-Cash Employee Benefit Plan Costs | (5) | 7 | 23 | ||
Net Realized and Unrealized (Gains) Losses on Energy Contracts and Other Derivatives | 80 | (290) | 116 | ||
Net Realized (Gains) Losses and (Income) Expense from NDT Fund | (278) | (296) | 98 | ||
Net Change in Certain Current Assets and Liabilities: | |||||
Fuel, Materials and Supplies | 18 | (1) | (39) | ||
Margin Deposits | (10) | 349 | (247) | ||
Accounts Receivable | 19 | (32) | 51 | ||
Accounts Payable | (23) | 5 | (13) | ||
Accounts Receivable/Payable-Affiliated Companies, net | 90 | (112) | (56) | ||
Other Current Assets and Liabilities | (3) | 14 | (40) | ||
Employee Benefit Plan Funding and Related Payments | (8) | (11) | (9) | ||
Other | (46) | 25 | 4 | ||
Net Cash Provided By (Used In) Operating Activities | 1,111 | 1,479 | 1,084 | ||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||
Additions to Property, Plant and Equipment | (404) | (607) | (996) | ||
Purchase of Emissions Allowances and RECs | (111) | (98) | (146) | ||
Proceeds from Sale of Available-for-Sale Securities | 2,083 | 1,658 | 1,423 | ||
Investments in Available-for-Sale Securities | (2,097) | (1,685) | (1,392) | ||
Increase (Decrease) Due from Affiliates | 12 | 149 | 0 | ||
Other | 42 | 50 | 39 | ||
Net Cash Provided By (Used In) Investing Activities | (348) | (761) | (1,051) | ||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||
Issuance of Long-Term Debt | 0 | 0 | 700 | ||
Redemption of Long-Term Debt | (406) | 0 | (250) | ||
Increase (Decrease) in Due to Affiliates | 0 | (193) | (88) | ||
Cash Dividend Paid | (350) | (525) | (400) | ||
Other | (1) | (1) | (5) | ||
Net Cash Provided By (Used In) Financing Activities | (757) | (719) | (43) | ||
Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash | 6 | (1) | (10) | ||
Cash, Cash Equivalents and Restricted Cash, beginning | 21 | 22 | 32 | ||
Cash, Cash Equivalents and Restricted Cash, ending | 27 | 21 | 22 | ||
Supplemental Disclosure of Cash Flow Information: | |||||
Income Taxes Paid (Received) | 127 | (41) | (92) | ||
Interest Paid, Net of Amounts Capitalized | 119 | 113 | 73 | ||
Accrued Property, Plant and Equipment Expenditures | 64 | 164 | 167 | ||
Proceeds from Sale of Property, Plant, and Equipment | $ 151 | $ 70 | $ 21 | ||
[1] | Includes an after-tax gain of $86 million in the year ended December 31, 2020 related to the sale of PSEG Power’s interest in the Yards Creek generation facility and an after-tax loss of $286 million in the year ended December 31, 2019 related to the sale of PSEG Power’s ownership interests in the Keystone and Conemaugh fossil generation plants. See Note 4. Early Plant Retirements/Asset Dispositions for additional information. |
Consolidated Statements Of Stoc
Consolidated Statements Of Stockholders' Equity - USD ($) shares in Millions, $ in Millions | Total | Cumulative Effect, Period of Adoption, Adjustment | Common Stock [Member] | Treasury Stock [Member] | Retained Earnings [Member] | Retained Earnings [Member]Cumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive Income (Loss) [Member] | Accumulated Other Comprehensive Income (Loss) [Member]Cumulative Effect, Period of Adoption, Adjustment | Public Service Electric and Gas Company | Public Service Electric and Gas CompanyCumulative Effect, Period of Adoption, Adjustment | Public Service Electric and Gas CompanyCommon Stock [Member] | Public Service Electric and Gas CompanyContributed Capital [Member] | Public Service Electric and Gas CompanyBasis Adjustment [Member] | Public Service Electric and Gas CompanyRetained Earnings [Member] | Public Service Electric and Gas CompanyRetained Earnings [Member]Cumulative Effect, Period of Adoption, Adjustment | Public Service Electric and Gas CompanyAccumulated Other Comprehensive Income (Loss) [Member] | PSEG Power LLC | PSEG Power LLCContributed Capital [Member] | PSEG Power LLCBasis Adjustment [Member] | PSEG Power LLCRetained Earnings [Member] | PSEG Power LLCRetained Earnings [Member]Cumulative Effect, Period of Adoption, Adjustment | PSEG Power LLCAccumulated Other Comprehensive Income (Loss) [Member] | PSEG Power LLCAccumulated Other Comprehensive Income (Loss) [Member]Cumulative Effect, Period of Adoption, Adjustment | |
Beginning Balance (in value) at Dec. 31, 2017 | $ 13,847 | $ 4,961 | $ (763) | $ 9,878 | $ 176 | $ (229) | $ (176) | $ 9,834 | $ 892 | $ 1,095 | $ 986 | $ 6,861 | $ 0 | $ 5,967 | $ 2,214 | $ (986) | $ 4,911 | $ 175 | $ (172) | $ (175) | ||||
Beginning Balance, shares at Dec. 31, 2017 | 534 | (29) | ||||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||
Net Income | 1,438 | 1,438 | 1,067 | 1,067 | 365 | 365 | ||||||||||||||||||
Other Comprehensive Income (Loss), net of tax | ||||||||||||||||||||||||
Other Comprehensive Income (Loss), net of tax | 28 | 28 | (1) | (1) | 28 | 28 | ||||||||||||||||||
Comprehensive Income | 1,466 | 1,066 | 393 | |||||||||||||||||||||
Cash Dividends on Common Stock | (910) | (910) | 0 | (400) | (400) | |||||||||||||||||||
Contributed Capital | 0 | |||||||||||||||||||||||
Other | (26) | $ 19 | $ (45) | 0 | 0 | |||||||||||||||||||
Treasury Stock, Shares, Acquired | (1) | |||||||||||||||||||||||
Ending Balance (in value) at Dec. 31, 2018 | $ 14,377 | $ 4,980 | $ (808) | 10,582 | 81 | (377) | $ (81) | 10,900 | 892 | 1,095 | 986 | 7,928 | (1) | 5,960 | 2,214 | (986) | 5,051 | $ 69 | (319) | $ (69) | ||||
Ending Balance, shares at Dec. 31, 2018 | 534 | (30) | ||||||||||||||||||||||
Other Comprehensive Income (Loss), net of tax | ||||||||||||||||||||||||
Common Stock, Dividends, Per Share, Cash Paid | $ 1.80 | |||||||||||||||||||||||
Other Comprehensive Income (Loss), tax | $ (6) | 1 | (7) | |||||||||||||||||||||
Net Income | 1,693 | [1] | 1,693 | 1,250 | 1,250 | 468 | 468 | |||||||||||||||||
Other Comprehensive Income (Loss), net of tax | (31) | (31) | 3 | 3 | (13) | (13) | ||||||||||||||||||
Comprehensive Income | 1,662 | 1,253 | 455 | |||||||||||||||||||||
Cash Dividends on Common Stock | (950) | (950) | 0 | (250) | (250) | (525) | (525) | |||||||||||||||||
Contributed Capital | 0 | |||||||||||||||||||||||
Other | 0 | $ 23 | $ (23) | 0 | 0 | |||||||||||||||||||
Treasury Stock, Shares, Acquired | 0 | 0 | ||||||||||||||||||||||
Ending Balance (in value) at Dec. 31, 2019 | $ 15,089 | $ (2) | $ 5,003 | $ (831) | 11,406 | $ (2) | (489) | 11,903 | $ (2) | 892 | 1,095 | 986 | 8,928 | $ (2) | 2 | 5,890 | 2,214 | (986) | 5,063 | (401) | ||||
Ending Balance, shares at Dec. 31, 2019 | 534 | (30) | ||||||||||||||||||||||
Other Comprehensive Income (Loss), net of tax | ||||||||||||||||||||||||
Common Stock, Dividends, Per Share, Cash Paid | $ 1.88 | |||||||||||||||||||||||
Other Comprehensive Income (Loss), tax | $ (2) | (1) | (9) | |||||||||||||||||||||
Net Income | 1,905 | [1] | 1,905 | 1,327 | 1,327 | 594 | 594 | |||||||||||||||||
Other Comprehensive Income (Loss), net of tax | (15) | (15) | 1 | 1 | (18) | (18) | ||||||||||||||||||
Comprehensive Income | 1,890 | 1,328 | 576 | |||||||||||||||||||||
Cash Dividends on Common Stock | (991) | (991) | 0 | (175) | (175) | (350) | (350) | |||||||||||||||||
Contributed Capital | 75 | 75 | ||||||||||||||||||||||
Noncash Contribution | 96 | 96 | ||||||||||||||||||||||
Other | (2) | $ 28 | $ (30) | 0 | 0 | |||||||||||||||||||
Treasury Stock, Shares, Acquired | 0 | 0 | ||||||||||||||||||||||
Ending Balance (in value) at Dec. 31, 2020 | $ 15,984 | $ 5,031 | $ (861) | $ 12,318 | $ (504) | 13,129 | $ 892 | $ 1,170 | $ 986 | $ 10,078 | $ 3 | 6,212 | $ 2,310 | $ (986) | $ 5,307 | $ (419) | ||||||||
Ending Balance, shares at Dec. 31, 2020 | 534 | (30) | ||||||||||||||||||||||
Other Comprehensive Income (Loss), net of tax | ||||||||||||||||||||||||
Common Stock, Dividends, Per Share, Cash Paid | $ 1.96 | |||||||||||||||||||||||
Other Comprehensive Income (Loss), tax | $ 0 | $ 0 | $ 1 | |||||||||||||||||||||
[1] | Includes an after-tax gain of $86 million in the year ended December 31, 2020 related to the sale of PSEG Power’s interest in the Yards Creek generation facility and an after-tax loss of $286 million in the year ended December 31, 2019 related to the sale of PSEG Power’s ownership interests in the Keystone and Conemaugh fossil generation plants. See Note 4. Early Plant Retirements/Asset Dispositions for additional information. |
Consolidated Statements Of St_2
Consolidated Statements Of Stockholders' Equity (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Other Comprehensive Income (Loss), tax | $ 0 | $ (2) | $ (6) | |
Common Stock, Dividends, Per Share, Cash Paid | $ 1.96 | $ 1.88 | $ 1.80 | |
Net Current Period Other Comprehensive Income (Loss) | $ (15) | $ (31) | $ 28 | |
Comprehensive Income | 1,890 | 1,662 | 1,466 | |
Member's Equity | 15,984 | 15,089 | 14,377 | $ 13,847 |
Cumulative Effect, Period of Adoption, Adjustment | ||||
Member's Equity | (2) | |||
Retained Earnings [Member] | ||||
Member's Equity | 12,318 | 11,406 | 10,582 | 9,878 |
Retained Earnings [Member] | Cumulative Effect, Period of Adoption, Adjustment | ||||
Member's Equity | (2) | 81 | 176 | |
Accumulated Other Comprehensive Income (Loss) [Member] | ||||
Net Current Period Other Comprehensive Income (Loss) | (15) | (31) | 28 | |
Member's Equity | (504) | (489) | (377) | (229) |
Accumulated Other Comprehensive Income (Loss) [Member] | Cumulative Effect, Period of Adoption, Adjustment | ||||
Member's Equity | (81) | (176) | ||
Public Service Electric and Gas Company | ||||
Other Comprehensive Income (Loss), tax | 0 | (1) | 1 | |
Net Current Period Other Comprehensive Income (Loss) | 1 | 3 | (1) | |
Comprehensive Income | 1,328 | 1,253 | 1,066 | |
Member's Equity | 13,129 | 11,903 | 10,900 | 9,834 |
Public Service Electric and Gas Company | Cumulative Effect, Period of Adoption, Adjustment | ||||
Member's Equity | (2) | |||
Public Service Electric and Gas Company | Retained Earnings [Member] | ||||
Member's Equity | 10,078 | 8,928 | 7,928 | 6,861 |
Public Service Electric and Gas Company | Retained Earnings [Member] | Cumulative Effect, Period of Adoption, Adjustment | ||||
Member's Equity | (2) | |||
Public Service Electric and Gas Company | Accumulated Other Comprehensive Income (Loss) [Member] | ||||
Net Current Period Other Comprehensive Income (Loss) | 1 | 3 | (1) | |
Member's Equity | 3 | 2 | (1) | 0 |
PSEG Power LLC | ||||
Other Comprehensive Income (Loss), tax | 1 | (9) | (7) | |
Net Current Period Other Comprehensive Income (Loss) | (18) | (13) | 28 | |
Comprehensive Income | 576 | 455 | 393 | |
Member's Equity | 6,212 | 5,890 | 5,960 | 5,967 |
PSEG Power LLC | Retained Earnings [Member] | ||||
Member's Equity | 5,307 | 5,063 | 5,051 | 4,911 |
PSEG Power LLC | Retained Earnings [Member] | Cumulative Effect, Period of Adoption, Adjustment | ||||
Member's Equity | 69 | 175 | ||
PSEG Power LLC | Accumulated Other Comprehensive Income (Loss) [Member] | ||||
Net Current Period Other Comprehensive Income (Loss) | (18) | (13) | 28 | |
Member's Equity | $ (419) | $ (401) | (319) | (172) |
PSEG Power LLC | Accumulated Other Comprehensive Income (Loss) [Member] | Cumulative Effect, Period of Adoption, Adjustment | ||||
Member's Equity | $ (69) | $ (175) |
Organization, Basis Of Presenta
Organization, Basis Of Presentation And Summary Of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Organization, Basis Of Presentation And Summary Of Significant Accounting Policies | Organization, Basis of Presentation and Summary of Significant Accounting Policies 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 Amended and Restated Operations Services Agreement (OSA); PSEG Energy Holdings L.L.C. (Energy Holdings), which earns it revenues from its portfolio of lease investments and holds our investment in offshore wind ventures; 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 Annual Reports on Form 10-K and in accordance with accounting guidance generally accepted in the United States (GAAP). Significant Accounting Policies Principles of Consolidation Each company consolidates those entities in which it has a controlling interest or is the primary beneficiary. See Note 5. Variable Interest Entity. Entities over which the companies exhibit significant influence, but do not have a controlling interest and/or are not the primary beneficiary, are accounted for under the equity method of accounting. For investments in which significant influence does not exist and the investor is not the primary beneficiary, the cost method of accounting is applied. All significant intercompany accounts and transactions are eliminated in consolidation. PSE&G and PSEG Power also have undivided interests in certain jointly-owned facilities, with each responsible for paying its respective ownership share of construction costs, fuel purchases and operating expenses. PSE&G and PSEG Power consolidate their portion of any revenues and expenses related to their respective jointly-owned facilities in the appropriate revenue and expense categories. Accounting for the Effects of Regulation In accordance with accounting guidance for rate-regulated entities, PSE&G’s financial statements reflect the economic effects of regulation. PSE&G defers the recognition of costs (a Regulatory Asset) or records the recognition of obligations (a Regulatory Liability) if it is probable that, through the rate-making process, there will be a corresponding increase or decrease in future rates. Accordingly, PSE&G has deferred certain costs and recoveries, which are being amortized over various future periods. To the extent that collection of any such costs or payment of liabilities becomes no longer probable as a result of changes in regulation and/or competitive position, the associated Regulatory Asset or Liability is charged or credited to income. Management believes that PSE&G’s T&D businesses continue to meet the accounting requirements for rate-regulated entities. For additional information, see Note 7. Regulatory Assets and Liabilities. Cash, Cash Equivalents and Restricted Cash The following provides a reconciliation of cash, cash equivalents and restricted cash reported within the Consolidated Balance Sheets that sum to the total of the same such amounts in the Consolidated Statements of Cash Flows for the years ended December 31, 2019 and 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 December 31, 2020 Cash and Cash Equivalents $ 204 $ 27 $ 312 $ 543 Restricted Cash in Other Current Assets 7 — — 7 Restricted Cash in Other Noncurrent Assets 22 — — 22 Cash, Cash Equivalents and Restricted Cash $ 233 $ 27 $ 312 $ 572 (A) Includes amounts applicable to PSEG (parent company), Energy Holdings and Services. Derivative Instruments Each company uses derivative instruments to manage risk pursuant to its business plans and prudent practices. 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. Changes in the fair market value of the derivative contracts are recorded in earnings. Determining whether a contract qualifies as a derivative requires that management exercise significant judgment, including assessing the contract’s market liquidity. PSEG has determined that contracts to purchase and sell certain products do not meet the definition of a derivative under the current authoritative guidance since they do not provide for net settlement, or the markets are not sufficiently liquid to conclude that physical forward contracts are readily convertible to cash. Under current authoritative guidance, all derivatives are recognized on the balance sheet at their fair value, except for derivatives that are designated as normal purchases and normal sales (NPNS). Further, derivatives that qualify for hedge accounting can be designated as fair value or cash flow hedges. For fair value hedges, changes in fair values for both the derivative and the underlying hedged exposure are recognized in earnings each period. Certain offsetting derivative assets and liabilities 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, these positions are offset on the Consolidated Balance Sheets of PSEG Power and PSEG. For cash flow hedges, the gain or loss on a derivative instrument designated and qualifying as a cash flow hedge is deferred in Accumulated Other Comprehensive Income (Loss) until earnings are affected by the variability of cash flows of the hedged transaction. For derivative contracts that do not qualify or are not designated as cash flow or fair value hedges or as NPNS, changes in fair value are recorded in current period earnings. PSEG does not currently elect fair value or cash flow hedge accounting on its commodity derivative positions. Contracts that qualify for, and are designated, as NPNS are accounted for upon settlement. Contracts which qualify for NPNS are contracts for which physical delivery is probable, they will not be financially settled, and the quantities under contract are expected to be used or sold in the normal course of business over a reasonable period of time. For additional information regarding derivative financial instruments, see Note 18. Financial Risk Management Activities. Revenue Recognition PSE&G’s regulated electric and gas revenues are recorded primarily based on services rendered to customers. PSE&G records unbilled revenues for the estimated amount customers will be billed for services rendered from the time meters were last read to the end of the respective accounting period. The unbilled revenue is estimated each month based on usage per day, the number of unbilled days in the period, estimated seasonal loads based upon the time of year and the variance of actual degree-days and temperature-humidity-index hours of the unbilled period from expected norms. Regulated revenues from the transmission of electricity are recognized as services are provided based on a FERC-approved annual formula rate mechanism. This mechanism provides for an annual filing of estimated revenue requirement with rates effective January 1 of each year. After completion of the annual period ending December 31, PSE&G files a true-up whereby it compares its actual revenue requirement to the original estimate to determine any over or under collection of revenue. PSE&G records the estimated financial statement impact of the difference between the actual and the filed revenue requirement as a refund or deferral for future recovery when such amounts are probable and can be reasonably estimated in accordance with accounting guidance for rate-regulated entities. The majority of PSEG Power’s revenues relate to bilateral contracts, which are accounted for on the accrual basis as the energy is delivered. PSEG Power’s revenue also includes changes in the value of energy derivative contracts that are not designated as NPNS. See Note 18. Financial Risk Management Activities for further discussion. PJM Interconnection, L.L.C. (PJM), the Independent System Operator-New England (ISO-NE) and the New York Independent System Operator (NYISO) facilitate the dispatch of energy and energy-related products. PSEG Power generally reports electricity sales and purchases conducted with those individual ISOs on a net hourly basis in either Revenues or Energy Costs in its Consolidated Statement of Operations, the classification of which depends on the net hourly activity. Capacity revenue and expense are also reported net based on PSEG Power’s monthly net sale or purchase position in the individual ISOs. PSEG LI is the primary beneficiary of Long Island Electric Utility Servco, LLC (Servco). For transactions in which Servco acts as principal, Servco records revenues and the related pass-through expenditures separately in Operating Revenues and Operations and Maintenance (O&M) Expense, respectively. See Note 5. Variable Interest Entity for further information. For additional information regarding Revenues, see Note 3. Revenues. Depreciation and Amortization (D&A) PSE&G calculates depreciation under the straight-line method based on estimated average remaining lives of the several classes of depreciable property. These estimates are reviewed on a periodic basis and necessary adjustments are made as approved by the BPU or FERC. The average depreciation rate stated as a percentage of original cost of depreciable property was as follows: 2020 2019 2018 Avg Rate Avg Rate Avg Rate Electric Transmission 2.41 % 2.41 % 2.42 % Electric Distribution 2.55 % 2.54 % 2.51 % Gas Distribution 1.84 % 1.85 % 1.61 % PSEG Power calculates depreciation on generation-related assets under the straight-line method based on the assets’ estimated useful lives. The estimated useful lives are: • general plant assets—3 years to 20 years • fossil production assets—30 years to 56 years • nuclear generation assets—approximately 60 years to 80 years • solar assets—25 years to 35 years Allowance for Funds Used During Construction (AFUDC) and Interest Capitalized During Construction (IDC) AFUDC represents the cost of debt and equity funds used to finance the construction of new utility assets at PSE&G. IDC represents the cost of debt used to finance construction at PSEG Power. The amount of AFUDC or IDC capitalized as Property, Plant and Equipment is included as a reduction of interest charges or other income for the equity portion. The amounts and average rates used to calculate AFUDC or IDC for the years ended December 31, 2020, 2019 and 2018 were as follows: AFUDC/IDC Capitalized 2020 2019 2018 Millions Avg Rate Millions Avg Rate Millions Avg Rate PSE&G $ 112 7.86 % $ 81 7.22 % $ 70 7.74 % PSEG Power $ 10 4.60 % $ 27 4.60 % $ 67 4.60 % Income Taxes PSEG and its subsidiaries file a consolidated federal income tax return and income taxes are allocated to PSEG’s subsidiaries based on the taxable income or loss of each subsidiary on a separate return basis in accordance with a tax-sharing agreement between PSEG and each of its affiliated subsidiaries. Allocations between PSEG and its subsidiaries are recorded through intercompany accounts. Investment tax credits deferred in prior years are being amortized over the useful lives of the related property. Uncertain income tax positions are accounted for using a benefit recognition model with a two-step approach, a more-likely-than-not recognition criterion and a measurement attribute that measures the position as the largest amount of tax benefit that is greater than 50% likely of being realized upon ultimate settlement. If it is not more-likely-than-not that the benefit will be sustained on its technical merits, no benefit will be recorded. Uncertain tax positions that relate only to timing of when an item is included on a tax return are considered to have met the recognition threshold. See Note 22. Income Taxes for further discussion. Impairment of Long-Lived Assets and Leveraged Leases Management evaluates long-lived assets for impairment whenever events or changes in circumstances, such as significant adverse changes in regulation, business climate, counterparty credit worthiness or market conditions, including prolonged periods of adverse commodity and capacity prices or a current expectation that a long-lived asset will be sold or disposed of significantly before the end of its previously estimated useful life, could potentially indicate an asset’s or asset group’s carrying amount may not be recoverable. In such an event, an undiscounted cash flow analysis is performed to determine if an impairment exists. When a long-lived asset’s or asset group’s carrying amount exceeds the associated undiscounted estimated future cash flows, the asset/asset group is considered impaired to the extent that its fair value is less than its carrying amount. An impairment would result in a reduction of the value of the long-lived asset/asset group through a non-cash charge to earnings. For PSEG Power, cash flows for long-lived assets and asset groups are determined at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. The cash flows from the generation units are generally evaluated at a regional portfolio level (PJM, NYISO, ISO-NE) along with cash flows generated from the customer supply and risk management activities, inclusive of cash flows from contracts, including those that are accounted for as derivatives and meet the NPNS scope exception. In certain cases, generation assets are evaluated on an individual basis where those assets are individually contracted on a long-term basis with a third party and operations are independent of other generation assets (typically PSEG Power’s solar units and Kalaeloa). See Note 4. Early Plant Retirements/Asset Dispositions for more information on impairment assessments performed on PSEG Power’s long-lived assets. Energy Holdings’ leveraged leases are comprised of Lease Receivables (net of non-recourse debt), the estimated residual value of leased assets, and unearned and deferred income. Residual values are the estimated values of the leased assets at the end of the respective lease per the original lease terms, net of any subsequent impairments. A review of the residual valuations, which are calculated by discounting the cash flows related to the leased assets after the lease term, is performed at least annually for each asset subject to lease using specific assumptions tailored to each asset. Those valuations are compared to the recorded residual values to determine if an impairment is warranted. Accounts Receivable—Allowance for Credit Losses PSE&G’s accounts receivable, including unbilled revenues, are 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 December 31, 2020. PSE&G’s electric bad debt expense is recovered through the Societal Benefits Clause mechanism and incremental gas bad debt has been deferred for future recovery through the COVID-19 Regulatory Asset. See Note 3. Revenues and Note 7. Regulatory Assets and Liabilities. Accounts receivable are charged off in the period in which the receivable is deemed uncollectible. Recoveries of accounts receivable are recorded when it is known they will be received. Materials and Supplies and Fuel PSE&G’s and PSEG Power’s materials and supplies are carried at average cost and charged to inventory when purchased and expensed or capitalized to Property, Plant and Equipment, as appropriate, when installed or used. 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. The cost of nuclear fuel is capitalized within Property, Plant and Equipment and amortized to fuel expense using the units-of-production method. In 2020, PSEG Power recorded a $2 million lower of cost or market (LOCOM) adjustment to its fuel oil inventory due to the decline in market pricing. Property, Plant and Equipment PSE&G’s additions to and replacements of existing property, plant and equipment are capitalized at cost. The cost of maintenance, repair and replacement of minor items of property is charged to expense as incurred. At the time units of depreciable property are retired or otherwise disposed of, the original cost, adjusted for net salvage value, is charged to accumulated depreciation. 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. Leases Effective January 1, 2019, PSEG and its subsidiaries adopted new accounting guidance which requires lessees to recognize leases with a term greater than 12 months on the balance sheet using a right-of-use asset approach. PSEG and its subsidiaries, when acting as lessee or lessor, determine if an arrangement is a lease at inception. PSEG assesses contracts to determine if the arrangement conveys (i) the right to control the use of the identified property, (ii) the right to obtain substantially all of the economic benefits from the use of the property, and (iii) the right to direct the use of the property. PSEG and its subsidiaries are neither the lessee nor the lessor in any material leases that are not classified as operating leases. Lessee —Operating Lease Right-of-Use Assets represent the right to use an underlying asset for the lease term and Operating Lease Liabilities represent the obligation to make lease payments arising from the lease. Operating Lease Right-of-Use Assets and Operating Lease Liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. The current portion of Operating Lease Liabilities is included in Other Current Liabilities. Operating Lease Right-of-Use Assets and noncurrent Operating Lease Liabilities are included as separate captions in Noncurrent Assets and Noncurrent Liabilities, respectively, on the Consolidated Balance Sheets of PSEG, PSE&G and PSEG Power. PSEG and its subsidiaries do not recognize Operating Lease Right-of-Use Assets and Operating Lease Liabilities for leases where the term is twelve months or less. PSEG and its subsidiaries recognize the lease payments on a straight-line basis over the term of the leases and variable lease payments in the period in which the obligations for those payments are incurred. As lessee, most of the operating leases of PSEG and its subsidiaries do not provide an implicit rate; therefore, incremental borrowing rates are used based on the information available at commencement date in determining the present value of lease payments. The implicit rate is used when readily determinable. PSE&G’s incremental borrowing rates are based on secured borrowing rates. PSEG’s and PSEG Power’s incremental borrowing rates are generally unsecured rates. Having calculated simulated secured rates for each of PSEG and PSEG Power, it was determined that the difference between the unsecured borrowing rates and the simulated secured rates had an immaterial effect on their recorded Operating Lease Right-of-Use Assets and Operating Lease Liabilities. Services, PSEG LI and other subsidiaries of PSEG that do not borrow funds or issue debt may enter into leases. Since these companies do not have credit ratings and related incremental borrowing rates, PSEG has determined that it is appropriate for these companies to use the incremental borrowing rate of PSEG, the parent company. Lease terms may include options to extend or terminate the lease when it is reasonably certain that such options will be exercised. PSEG and its subsidiaries have lease agreements with lease and non-lease components. For real estate, equipment and vehicle leases, the lease and non-lease components are accounted for as a single lease component. Lessor —Property subject to operating leases, where PSEG or one of its subsidiaries is the lessor, is included in Property, Plant and Equipment and rental income from these leases is included in Operating Revenues. PSEG and its subsidiaries, have lease agreements with lease and non-lease components, which are primarily related to domestic energy generation including solar generation facilities. PSEG and subsidiaries account for the lease and non-lease components as a single lease component. See Note 8. Leases for detailed information on leases. Energy Holdings is the lessor in leveraged leases. Leveraged lease accounting guidance is grandfathered for existing leveraged leases. Energy Holdings’ leveraged leases are accounted for in Operating Revenues and in Noncurrent Long-Term Investments. If modified after January 1, 2019, those leveraged leases will be accounted for as operating or financing leases. See Note 9. Long-Term Investments and Note 10. Financing Receivables. Trust Investments These securities comprise the Nuclear Decommissioning Trust (NDT) Fund, a master independent external trust account maintained to provide for the costs of decommissioning upon termination of operations of PSEG Power’s nuclear facilities and amounts that are deposited to fund a Rabbi Trust which was established to meet the obligations related to non-qualified pension plans and deferred compensation plans. Unrealized gains and losses on equity security investments are recorded in Net Income. The debt securities are classified as available-for-sale with the unrealized gains and losses recorded as a component of Accumulated Other Comprehensive Income (Loss). Realized gains and losses on both equity and available-for-sale debt security investments are recorded in earnings and are included with the unrealized gains and losses on equity securities in Net Gains (Losses) on Trust Investments. Other-than-temporary impairments on NDT and Rabbi Trust debt securities are also included in Net Gains (Losses) on Trust Investments. See Note 11. Trust Investments for further discussion. Pension and Other Postretirement Benefits (OPEB) Plans The market-related value of plan assets held for the qualified pension and OPEB plans is equal to the fair value of those assets as of year-end. Fair value is determined using quoted market prices and independent pricing services based upon the security type as reported by the trustee at the measurement date (December 31) as well as investments in unlisted real estate which are valued via third-party appraisals. PSEG recognizes a long-term receivable primarily related to future funding by LIPA of Servco’s recognized pension and OPEB liabilities. This receivable is presented separately on the Consolidated Balance Sheet of PSEG as a noncurrent asset. Pursuant to the OSA, Servco records expense for contributions to its pension plan trusts and for OPEB payments made to retirees. See Note 14. Pension, Other Postretirement Benefits (OPEB) and Savings Plans for further discussion. Basis Adjustment PSE&G and PSEG Power have recorded a Basis Adjustment in their respective Consolidated Balance Sheets related to the generation assets that were transferred from PSE&G to PSEG Power in August 2000 at the price specified by the BPU. Because the transfer was between affiliates, the transaction was recorded at the net book value of the assets and liabilities rather than the transfer price. The difference between the total transfer price and the net book value of the generation-related assets and liabilities, $986 million, net of tax, was recorded as a Basis Adjustment on PSE&G’s and PSEG Power’s Consolidated Balance Sheets. The $986 million is an addition to PSE&G’s Common Stockholder’s Equity and a reduction of PSEG Power’s Member’s Equity. These amounts are eliminated on PSEG’s consolidated financial statements. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Public Service Electric and Gas Company | |
Organization, Basis Of Presentation And Summary Of Significant Accounting Policies | Organization, Basis of Presentation and Summary of Significant Accounting Policies 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 Amended and Restated Operations Services Agreement (OSA); PSEG Energy Holdings L.L.C. (Energy Holdings), which earns it revenues from its portfolio of lease investments and holds our investment in offshore wind ventures; 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 Annual Reports on Form 10-K and in accordance with accounting guidance generally accepted in the United States (GAAP). Significant Accounting Policies Principles of Consolidation Each company consolidates those entities in which it has a controlling interest or is the primary beneficiary. See Note 5. Variable Interest Entity. Entities over which the companies exhibit significant influence, but do not have a controlling interest and/or are not the primary beneficiary, are accounted for under the equity method of accounting. For investments in which significant influence does not exist and the investor is not the primary beneficiary, the cost method of accounting is applied. All significant intercompany accounts and transactions are eliminated in consolidation. PSE&G and PSEG Power also have undivided interests in certain jointly-owned facilities, with each responsible for paying its respective ownership share of construction costs, fuel purchases and operating expenses. PSE&G and PSEG Power consolidate their portion of any revenues and expenses related to their respective jointly-owned facilities in the appropriate revenue and expense categories. Accounting for the Effects of Regulation In accordance with accounting guidance for rate-regulated entities, PSE&G’s financial statements reflect the economic effects of regulation. PSE&G defers the recognition of costs (a Regulatory Asset) or records the recognition of obligations (a Regulatory Liability) if it is probable that, through the rate-making process, there will be a corresponding increase or decrease in future rates. Accordingly, PSE&G has deferred certain costs and recoveries, which are being amortized over various future periods. To the extent that collection of any such costs or payment of liabilities becomes no longer probable as a result of changes in regulation and/or competitive position, the associated Regulatory Asset or Liability is charged or credited to income. Management believes that PSE&G’s T&D businesses continue to meet the accounting requirements for rate-regulated entities. For additional information, see Note 7. Regulatory Assets and Liabilities. Cash, Cash Equivalents and Restricted Cash The following provides a reconciliation of cash, cash equivalents and restricted cash reported within the Consolidated Balance Sheets that sum to the total of the same such amounts in the Consolidated Statements of Cash Flows for the years ended December 31, 2019 and 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 December 31, 2020 Cash and Cash Equivalents $ 204 $ 27 $ 312 $ 543 Restricted Cash in Other Current Assets 7 — — 7 Restricted Cash in Other Noncurrent Assets 22 — — 22 Cash, Cash Equivalents and Restricted Cash $ 233 $ 27 $ 312 $ 572 (A) Includes amounts applicable to PSEG (parent company), Energy Holdings and Services. Derivative Instruments Each company uses derivative instruments to manage risk pursuant to its business plans and prudent practices. 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. Changes in the fair market value of the derivative contracts are recorded in earnings. Determining whether a contract qualifies as a derivative requires that management exercise significant judgment, including assessing the contract’s market liquidity. PSEG has determined that contracts to purchase and sell certain products do not meet the definition of a derivative under the current authoritative guidance since they do not provide for net settlement, or the markets are not sufficiently liquid to conclude that physical forward contracts are readily convertible to cash. Under current authoritative guidance, all derivatives are recognized on the balance sheet at their fair value, except for derivatives that are designated as normal purchases and normal sales (NPNS). Further, derivatives that qualify for hedge accounting can be designated as fair value or cash flow hedges. For fair value hedges, changes in fair values for both the derivative and the underlying hedged exposure are recognized in earnings each period. Certain offsetting derivative assets and liabilities 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, these positions are offset on the Consolidated Balance Sheets of PSEG Power and PSEG. For cash flow hedges, the gain or loss on a derivative instrument designated and qualifying as a cash flow hedge is deferred in Accumulated Other Comprehensive Income (Loss) until earnings are affected by the variability of cash flows of the hedged transaction. For derivative contracts that do not qualify or are not designated as cash flow or fair value hedges or as NPNS, changes in fair value are recorded in current period earnings. PSEG does not currently elect fair value or cash flow hedge accounting on its commodity derivative positions. Contracts that qualify for, and are designated, as NPNS are accounted for upon settlement. Contracts which qualify for NPNS are contracts for which physical delivery is probable, they will not be financially settled, and the quantities under contract are expected to be used or sold in the normal course of business over a reasonable period of time. For additional information regarding derivative financial instruments, see Note 18. Financial Risk Management Activities. Revenue Recognition PSE&G’s regulated electric and gas revenues are recorded primarily based on services rendered to customers. PSE&G records unbilled revenues for the estimated amount customers will be billed for services rendered from the time meters were last read to the end of the respective accounting period. The unbilled revenue is estimated each month based on usage per day, the number of unbilled days in the period, estimated seasonal loads based upon the time of year and the variance of actual degree-days and temperature-humidity-index hours of the unbilled period from expected norms. Regulated revenues from the transmission of electricity are recognized as services are provided based on a FERC-approved annual formula rate mechanism. This mechanism provides for an annual filing of estimated revenue requirement with rates effective January 1 of each year. After completion of the annual period ending December 31, PSE&G files a true-up whereby it compares its actual revenue requirement to the original estimate to determine any over or under collection of revenue. PSE&G records the estimated financial statement impact of the difference between the actual and the filed revenue requirement as a refund or deferral for future recovery when such amounts are probable and can be reasonably estimated in accordance with accounting guidance for rate-regulated entities. The majority of PSEG Power’s revenues relate to bilateral contracts, which are accounted for on the accrual basis as the energy is delivered. PSEG Power’s revenue also includes changes in the value of energy derivative contracts that are not designated as NPNS. See Note 18. Financial Risk Management Activities for further discussion. PJM Interconnection, L.L.C. (PJM), the Independent System Operator-New England (ISO-NE) and the New York Independent System Operator (NYISO) facilitate the dispatch of energy and energy-related products. PSEG Power generally reports electricity sales and purchases conducted with those individual ISOs on a net hourly basis in either Revenues or Energy Costs in its Consolidated Statement of Operations, the classification of which depends on the net hourly activity. Capacity revenue and expense are also reported net based on PSEG Power’s monthly net sale or purchase position in the individual ISOs. PSEG LI is the primary beneficiary of Long Island Electric Utility Servco, LLC (Servco). For transactions in which Servco acts as principal, Servco records revenues and the related pass-through expenditures separately in Operating Revenues and Operations and Maintenance (O&M) Expense, respectively. See Note 5. Variable Interest Entity for further information. For additional information regarding Revenues, see Note 3. Revenues. Depreciation and Amortization (D&A) PSE&G calculates depreciation under the straight-line method based on estimated average remaining lives of the several classes of depreciable property. These estimates are reviewed on a periodic basis and necessary adjustments are made as approved by the BPU or FERC. The average depreciation rate stated as a percentage of original cost of depreciable property was as follows: 2020 2019 2018 Avg Rate Avg Rate Avg Rate Electric Transmission 2.41 % 2.41 % 2.42 % Electric Distribution 2.55 % 2.54 % 2.51 % Gas Distribution 1.84 % 1.85 % 1.61 % PSEG Power calculates depreciation on generation-related assets under the straight-line method based on the assets’ estimated useful lives. The estimated useful lives are: • general plant assets—3 years to 20 years • fossil production assets—30 years to 56 years • nuclear generation assets—approximately 60 years to 80 years • solar assets—25 years to 35 years Allowance for Funds Used During Construction (AFUDC) and Interest Capitalized During Construction (IDC) AFUDC represents the cost of debt and equity funds used to finance the construction of new utility assets at PSE&G. IDC represents the cost of debt used to finance construction at PSEG Power. The amount of AFUDC or IDC capitalized as Property, Plant and Equipment is included as a reduction of interest charges or other income for the equity portion. The amounts and average rates used to calculate AFUDC or IDC for the years ended December 31, 2020, 2019 and 2018 were as follows: AFUDC/IDC Capitalized 2020 2019 2018 Millions Avg Rate Millions Avg Rate Millions Avg Rate PSE&G $ 112 7.86 % $ 81 7.22 % $ 70 7.74 % PSEG Power $ 10 4.60 % $ 27 4.60 % $ 67 4.60 % Income Taxes PSEG and its subsidiaries file a consolidated federal income tax return and income taxes are allocated to PSEG’s subsidiaries based on the taxable income or loss of each subsidiary on a separate return basis in accordance with a tax-sharing agreement between PSEG and each of its affiliated subsidiaries. Allocations between PSEG and its subsidiaries are recorded through intercompany accounts. Investment tax credits deferred in prior years are being amortized over the useful lives of the related property. Uncertain income tax positions are accounted for using a benefit recognition model with a two-step approach, a more-likely-than-not recognition criterion and a measurement attribute that measures the position as the largest amount of tax benefit that is greater than 50% likely of being realized upon ultimate settlement. If it is not more-likely-than-not that the benefit will be sustained on its technical merits, no benefit will be recorded. Uncertain tax positions that relate only to timing of when an item is included on a tax return are considered to have met the recognition threshold. See Note 22. Income Taxes for further discussion. Impairment of Long-Lived Assets and Leveraged Leases Management evaluates long-lived assets for impairment whenever events or changes in circumstances, such as significant adverse changes in regulation, business climate, counterparty credit worthiness or market conditions, including prolonged periods of adverse commodity and capacity prices or a current expectation that a long-lived asset will be sold or disposed of significantly before the end of its previously estimated useful life, could potentially indicate an asset’s or asset group’s carrying amount may not be recoverable. In such an event, an undiscounted cash flow analysis is performed to determine if an impairment exists. When a long-lived asset’s or asset group’s carrying amount exceeds the associated undiscounted estimated future cash flows, the asset/asset group is considered impaired to the extent that its fair value is less than its carrying amount. An impairment would result in a reduction of the value of the long-lived asset/asset group through a non-cash charge to earnings. For PSEG Power, cash flows for long-lived assets and asset groups are determined at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. The cash flows from the generation units are generally evaluated at a regional portfolio level (PJM, NYISO, ISO-NE) along with cash flows generated from the customer supply and risk management activities, inclusive of cash flows from contracts, including those that are accounted for as derivatives and meet the NPNS scope exception. In certain cases, generation assets are evaluated on an individual basis where those assets are individually contracted on a long-term basis with a third party and operations are independent of other generation assets (typically PSEG Power’s solar units and Kalaeloa). See Note 4. Early Plant Retirements/Asset Dispositions for more information on impairment assessments performed on PSEG Power’s long-lived assets. Energy Holdings’ leveraged leases are comprised of Lease Receivables (net of non-recourse debt), the estimated residual value of leased assets, and unearned and deferred income. Residual values are the estimated values of the leased assets at the end of the respective lease per the original lease terms, net of any subsequent impairments. A review of the residual valuations, which are calculated by discounting the cash flows related to the leased assets after the lease term, is performed at least annually for each asset subject to lease using specific assumptions tailored to each asset. Those valuations are compared to the recorded residual values to determine if an impairment is warranted. Accounts Receivable—Allowance for Credit Losses PSE&G’s accounts receivable, including unbilled revenues, are 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 December 31, 2020. PSE&G’s electric bad debt expense is recovered through the Societal Benefits Clause mechanism and incremental gas bad debt has been deferred for future recovery through the COVID-19 Regulatory Asset. See Note 3. Revenues and Note 7. Regulatory Assets and Liabilities. Accounts receivable are charged off in the period in which the receivable is deemed uncollectible. Recoveries of accounts receivable are recorded when it is known they will be received. Materials and Supplies and Fuel PSE&G’s and PSEG Power’s materials and supplies are carried at average cost and charged to inventory when purchased and expensed or capitalized to Property, Plant and Equipment, as appropriate, when installed or used. 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. The cost of nuclear fuel is capitalized within Property, Plant and Equipment and amortized to fuel expense using the units-of-production method. In 2020, PSEG Power recorded a $2 million lower of cost or market (LOCOM) adjustment to its fuel oil inventory due to the decline in market pricing. Property, Plant and Equipment PSE&G’s additions to and replacements of existing property, plant and equipment are capitalized at cost. The cost of maintenance, repair and replacement of minor items of property is charged to expense as incurred. At the time units of depreciable property are retired or otherwise disposed of, the original cost, adjusted for net salvage value, is charged to accumulated depreciation. 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. Leases Effective January 1, 2019, PSEG and its subsidiaries adopted new accounting guidance which requires lessees to recognize leases with a term greater than 12 months on the balance sheet using a right-of-use asset approach. PSEG and its subsidiaries, when acting as lessee or lessor, determine if an arrangement is a lease at inception. PSEG assesses contracts to determine if the arrangement conveys (i) the right to control the use of the identified property, (ii) the right to obtain substantially all of the economic benefits from the use of the property, and (iii) the right to direct the use of the property. PSEG and its subsidiaries are neither the lessee nor the lessor in any material leases that are not classified as operating leases. Lessee —Operating Lease Right-of-Use Assets represent the right to use an underlying asset for the lease term and Operating Lease Liabilities represent the obligation to make lease payments arising from the lease. Operating Lease Right-of-Use Assets and Operating Lease Liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. The current portion of Operating Lease Liabilities is included in Other Current Liabilities. Operating Lease Right-of-Use Assets and noncurrent Operating Lease Liabilities are included as separate captions in Noncurrent Assets and Noncurrent Liabilities, respectively, on the Consolidated Balance Sheets of PSEG, PSE&G and PSEG Power. PSEG and its subsidiaries do not recognize Operating Lease Right-of-Use Assets and Operating Lease Liabilities for leases where the term is twelve months or less. PSEG and its subsidiaries recognize the lease payments on a straight-line basis over the term of the leases and variable lease payments in the period in which the obligations for those payments are incurred. As lessee, most of the operating leases of PSEG and its subsidiaries do not provide an implicit rate; therefore, incremental borrowing rates are used based on the information available at commencement date in determining the present value of lease payments. The implicit rate is used when readily determinable. PSE&G’s incremental borrowing rates are based on secured borrowing rates. PSEG’s and PSEG Power’s incremental borrowing rates are generally unsecured rates. Having calculated simulated secured rates for each of PSEG and PSEG Power, it was determined that the difference between the unsecured borrowing rates and the simulated secured rates had an immaterial effect on their recorded Operating Lease Right-of-Use Assets and Operating Lease Liabilities. Services, PSEG LI and other subsidiaries of PSEG that do not borrow funds or issue debt may enter into leases. Since these companies do not have credit ratings and related incremental borrowing rates, PSEG has determined that it is appropriate for these companies to use the incremental borrowing rate of PSEG, the parent company. Lease terms may include options to extend or terminate the lease when it is reasonably certain that such options will be exercised. PSEG and its subsidiaries have lease agreements with lease and non-lease components. For real estate, equipment and vehicle leases, the lease and non-lease components are accounted for as a single lease component. Lessor —Property subject to operating leases, where PSEG or one of its subsidiaries is the lessor, is included in Property, Plant and Equipment and rental income from these leases is included in Operating Revenues. PSEG and its subsidiaries, have lease agreements with lease and non-lease components, which are primarily related to domestic energy generation including solar generation facilities. PSEG and subsidiaries account for the lease and non-lease components as a single lease component. See Note 8. Leases for detailed information on leases. Energy Holdings is the lessor in leveraged leases. Leveraged lease accounting guidance is grandfathered for existing leveraged leases. Energy Holdings’ leveraged leases are accounted for in Operating Revenues and in Noncurrent Long-Term Investments. If modified after January 1, 2019, those leveraged leases will be accounted for as operating or financing leases. See Note 9. Long-Term Investments and Note 10. Financing Receivables. Trust Investments These securities comprise the Nuclear Decommissioning Trust (NDT) Fund, a master independent external trust account maintained to provide for the costs of decommissioning upon termination of operations of PSEG Power’s nuclear facilities and amounts that are deposited to fund a Rabbi Trust which was established to meet the obligations related to non-qualified pension plans and deferred compensation plans. Unrealized gains and losses on equity security investments are recorded in Net Income. The debt securities are classified as available-for-sale with the unrealized gains and losses recorded as a component of Accumulated Other Comprehensive Income (Loss). Realized gains and losses on both equity and available-for-sale debt security investments are recorded in earnings and are included with the unrealized gains and losses on equity securities in Net Gains (Losses) on Trust Investments. Other-than-temporary impairments on NDT and Rabbi Trust debt securities are also included in Net Gains (Losses) on Trust Investments. See Note 11. Trust Investments for further discussion. Pension and Other Postretirement Benefits (OPEB) Plans The market-related value of plan assets held for the qualified pension and OPEB plans is equal to the fair value of those assets as of year-end. Fair value is determined using quoted market prices and independent pricing services based upon the security type as reported by the trustee at the measurement date (December 31) as well as investments in unlisted real estate which are valued via third-party appraisals. PSEG recognizes a long-term receivable primarily related to future funding by LIPA of Servco’s recognized pension and OPEB liabilities. This receivable is presented separately on the Consolidated Balance Sheet of PSEG as a noncurrent asset. Pursuant to the OSA, Servco records expense for contributions to its pension plan trusts and for OPEB payments made to retirees. See Note 14. Pension, Other Postretirement Benefits (OPEB) and Savings Plans for further discussion. Basis Adjustment PSE&G and PSEG Power have recorded a Basis Adjustment in their respective Consolidated Balance Sheets related to the generation assets that were transferred from PSE&G to PSEG Power in August 2000 at the price specified by the BPU. Because the transfer was between affiliates, the transaction was recorded at the net book value of the assets and liabilities rather than the transfer price. The difference between the total transfer price and the net book value of the generation-related assets and liabilities, $986 million, net of tax, was recorded as a Basis Adjustment on PSE&G’s and PSEG Power’s Consolidated Balance Sheets. The $986 million is an addition to PSE&G’s Common Stockholder’s Equity and a reduction of PSEG Power’s Member’s Equity. These amounts are eliminated on PSEG’s consolidated financial statements. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
PSEG Power LLC | |
Organization, Basis Of Presentation And Summary Of Significant Accounting Policies | Organization, Basis of Presentation and Summary of Significant Accounting Policies 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 Amended and Restated Operations Services Agreement (OSA); PSEG Energy Holdings L.L.C. (Energy Holdings), which earns it revenues from its portfolio of lease investments and holds our investment in offshore wind ventures; 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 Annual Reports on Form 10-K and in accordance with accounting guidance generally accepted in the United States (GAAP). Significant Accounting Policies Principles of Consolidation Each company consolidates those entities in which it has a controlling interest or is the primary beneficiary. See Note 5. Variable Interest Entity. Entities over which the companies exhibit significant influence, but do not have a controlling interest and/or are not the primary beneficiary, are accounted for under the equity method of accounting. For investments in which significant influence does not exist and the investor is not the primary beneficiary, the cost method of accounting is applied. All significant intercompany accounts and transactions are eliminated in consolidation. PSE&G and PSEG Power also have undivided interests in certain jointly-owned facilities, with each responsible for paying its respective ownership share of construction costs, fuel purchases and operating expenses. PSE&G and PSEG Power consolidate their portion of any revenues and expenses related to their respective jointly-owned facilities in the appropriate revenue and expense categories. Accounting for the Effects of Regulation In accordance with accounting guidance for rate-regulated entities, PSE&G’s financial statements reflect the economic effects of regulation. PSE&G defers the recognition of costs (a Regulatory Asset) or records the recognition of obligations (a Regulatory Liability) if it is probable that, through the rate-making process, there will be a corresponding increase or decrease in future rates. Accordingly, PSE&G has deferred certain costs and recoveries, which are being amortized over various future periods. To the extent that collection of any such costs or payment of liabilities becomes no longer probable as a result of changes in regulation and/or competitive position, the associated Regulatory Asset or Liability is charged or credited to income. Management believes that PSE&G’s T&D businesses continue to meet the accounting requirements for rate-regulated entities. For additional information, see Note 7. Regulatory Assets and Liabilities. Cash, Cash Equivalents and Restricted Cash The following provides a reconciliation of cash, cash equivalents and restricted cash reported within the Consolidated Balance Sheets that sum to the total of the same such amounts in the Consolidated Statements of Cash Flows for the years ended December 31, 2019 and 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 December 31, 2020 Cash and Cash Equivalents $ 204 $ 27 $ 312 $ 543 Restricted Cash in Other Current Assets 7 — — 7 Restricted Cash in Other Noncurrent Assets 22 — — 22 Cash, Cash Equivalents and Restricted Cash $ 233 $ 27 $ 312 $ 572 (A) Includes amounts applicable to PSEG (parent company), Energy Holdings and Services. Derivative Instruments Each company uses derivative instruments to manage risk pursuant to its business plans and prudent practices. 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. Changes in the fair market value of the derivative contracts are recorded in earnings. Determining whether a contract qualifies as a derivative requires that management exercise significant judgment, including assessing the contract’s market liquidity. PSEG has determined that contracts to purchase and sell certain products do not meet the definition of a derivative under the current authoritative guidance since they do not provide for net settlement, or the markets are not sufficiently liquid to conclude that physical forward contracts are readily convertible to cash. Under current authoritative guidance, all derivatives are recognized on the balance sheet at their fair value, except for derivatives that are designated as normal purchases and normal sales (NPNS). Further, derivatives that qualify for hedge accounting can be designated as fair value or cash flow hedges. For fair value hedges, changes in fair values for both the derivative and the underlying hedged exposure are recognized in earnings each period. Certain offsetting derivative assets and liabilities 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, these positions are offset on the Consolidated Balance Sheets of PSEG Power and PSEG. For cash flow hedges, the gain or loss on a derivative instrument designated and qualifying as a cash flow hedge is deferred in Accumulated Other Comprehensive Income (Loss) until earnings are affected by the variability of cash flows of the hedged transaction. For derivative contracts that do not qualify or are not designated as cash flow or fair value hedges or as NPNS, changes in fair value are recorded in current period earnings. PSEG does not currently elect fair value or cash flow hedge accounting on its commodity derivative positions. Contracts that qualify for, and are designated, as NPNS are accounted for upon settlement. Contracts which qualify for NPNS are contracts for which physical delivery is probable, they will not be financially settled, and the quantities under contract are expected to be used or sold in the normal course of business over a reasonable period of time. For additional information regarding derivative financial instruments, see Note 18. Financial Risk Management Activities. Revenue Recognition PSE&G’s regulated electric and gas revenues are recorded primarily based on services rendered to customers. PSE&G records unbilled revenues for the estimated amount customers will be billed for services rendered from the time meters were last read to the end of the respective accounting period. The unbilled revenue is estimated each month based on usage per day, the number of unbilled days in the period, estimated seasonal loads based upon the time of year and the variance of actual degree-days and temperature-humidity-index hours of the unbilled period from expected norms. Regulated revenues from the transmission of electricity are recognized as services are provided based on a FERC-approved annual formula rate mechanism. This mechanism provides for an annual filing of estimated revenue requirement with rates effective January 1 of each year. After completion of the annual period ending December 31, PSE&G files a true-up whereby it compares its actual revenue requirement to the original estimate to determine any over or under collection of revenue. PSE&G records the estimated financial statement impact of the difference between the actual and the filed revenue requirement as a refund or deferral for future recovery when such amounts are probable and can be reasonably estimated in accordance with accounting guidance for rate-regulated entities. The majority of PSEG Power’s revenues relate to bilateral contracts, which are accounted for on the accrual basis as the energy is delivered. PSEG Power’s revenue also includes changes in the value of energy derivative contracts that are not designated as NPNS. See Note 18. Financial Risk Management Activities for further discussion. PJM Interconnection, L.L.C. (PJM), the Independent System Operator-New England (ISO-NE) and the New York Independent System Operator (NYISO) facilitate the dispatch of energy and energy-related products. PSEG Power generally reports electricity sales and purchases conducted with those individual ISOs on a net hourly basis in either Revenues or Energy Costs in its Consolidated Statement of Operations, the classification of which depends on the net hourly activity. Capacity revenue and expense are also reported net based on PSEG Power’s monthly net sale or purchase position in the individual ISOs. PSEG LI is the primary beneficiary of Long Island Electric Utility Servco, LLC (Servco). For transactions in which Servco acts as principal, Servco records revenues and the related pass-through expenditures separately in Operating Revenues and Operations and Maintenance (O&M) Expense, respectively. See Note 5. Variable Interest Entity for further information. For additional information regarding Revenues, see Note 3. Revenues. Depreciation and Amortization (D&A) PSE&G calculates depreciation under the straight-line method based on estimated average remaining lives of the several classes of depreciable property. These estimates are reviewed on a periodic basis and necessary adjustments are made as approved by the BPU or FERC. The average depreciation rate stated as a percentage of original cost of depreciable property was as follows: 2020 2019 2018 Avg Rate Avg Rate Avg Rate Electric Transmission 2.41 % 2.41 % 2.42 % Electric Distribution 2.55 % 2.54 % 2.51 % Gas Distribution 1.84 % 1.85 % 1.61 % PSEG Power calculates depreciation on generation-related assets under the straight-line method based on the assets’ estimated useful lives. The estimated useful lives are: • general plant assets—3 years to 20 years • fossil production assets—30 years to 56 years • nuclear generation assets—approximately 60 years to 80 years • solar assets—25 years to 35 years Allowance for Funds Used During Construction (AFUDC) and Interest Capitalized During Construction (IDC) AFUDC represents the cost of debt and equity funds used to finance the construction of new utility assets at PSE&G. IDC represents the cost of debt used to finance construction at PSEG Power. The amount of AFUDC or IDC capitalized as Property, Plant and Equipment is included as a reduction of interest charges or other income for the equity portion. The amounts and average rates used to calculate AFUDC or IDC for the years ended December 31, 2020, 2019 and 2018 were as follows: AFUDC/IDC Capitalized 2020 2019 2018 Millions Avg Rate Millions Avg Rate Millions Avg Rate PSE&G $ 112 7.86 % $ 81 7.22 % $ 70 7.74 % PSEG Power $ 10 4.60 % $ 27 4.60 % $ 67 4.60 % Income Taxes PSEG and its subsidiaries file a consolidated federal income tax return and income taxes are allocated to PSEG’s subsidiaries based on the taxable income or loss of each subsidiary on a separate return basis in accordance with a tax-sharing agreement between PSEG and each of its affiliated subsidiaries. Allocations between PSEG and its subsidiaries are recorded through intercompany accounts. Investment tax credits deferred in prior years are being amortized over the useful lives of the related property. Uncertain income tax positions are accounted for using a benefit recognition model with a two-step approach, a more-likely-than-not recognition criterion and a measurement attribute that measures the position as the largest amount of tax benefit that is greater than 50% likely of being realized upon ultimate settlement. If it is not more-likely-than-not that the benefit will be sustained on its technical merits, no benefit will be recorded. Uncertain tax positions that relate only to timing of when an item is included on a tax return are considered to have met the recognition threshold. See Note 22. Income Taxes for further discussion. Impairment of Long-Lived Assets and Leveraged Leases Management evaluates long-lived assets for impairment whenever events or changes in circumstances, such as significant adverse changes in regulation, business climate, counterparty credit worthiness or market conditions, including prolonged periods of adverse commodity and capacity prices or a current expectation that a long-lived asset will be sold or disposed of significantly before the end of its previously estimated useful life, could potentially indicate an asset’s or asset group’s carrying amount may not be recoverable. In such an event, an undiscounted cash flow analysis is performed to determine if an impairment exists. When a long-lived asset’s or asset group’s carrying amount exceeds the associated undiscounted estimated future cash flows, the asset/asset group is considered impaired to the extent that its fair value is less than its carrying amount. An impairment would result in a reduction of the value of the long-lived asset/asset group through a non-cash charge to earnings. For PSEG Power, cash flows for long-lived assets and asset groups are determined at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. The cash flows from the generation units are generally evaluated at a regional portfolio level (PJM, NYISO, ISO-NE) along with cash flows generated from the customer supply and risk management activities, inclusive of cash flows from contracts, including those that are accounted for as derivatives and meet the NPNS scope exception. In certain cases, generation assets are evaluated on an individual basis where those assets are individually contracted on a long-term basis with a third party and operations are independent of other generation assets (typically PSEG Power’s solar units and Kalaeloa). See Note 4. Early Plant Retirements/Asset Dispositions for more information on impairment assessments performed on PSEG Power’s long-lived assets. Energy Holdings’ leveraged leases are comprised of Lease Receivables (net of non-recourse debt), the estimated residual value of leased assets, and unearned and deferred income. Residual values are the estimated values of the leased assets at the end of the respective lease per the original lease terms, net of any subsequent impairments. A review of the residual valuations, which are calculated by discounting the cash flows related to the leased assets after the lease term, is performed at least annually for each asset subject to lease using specific assumptions tailored to each asset. Those valuations are compared to the recorded residual values to determine if an impairment is warranted. Accounts Receivable—Allowance for Credit Losses PSE&G’s accounts receivable, including unbilled revenues, are 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 December 31, 2020. PSE&G’s electric bad debt expense is recovered through the Societal Benefits Clause mechanism and incremental gas bad debt has been deferred for future recovery through the COVID-19 Regulatory Asset. See Note 3. Revenues and Note 7. Regulatory Assets and Liabilities. Accounts receivable are charged off in the period in which the receivable is deemed uncollectible. Recoveries of accounts receivable are recorded when it is known they will be received. Materials and Supplies and Fuel PSE&G’s and PSEG Power’s materials and supplies are carried at average cost and charged to inventory when purchased and expensed or capitalized to Property, Plant and Equipment, as appropriate, when installed or used. 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. The cost of nuclear fuel is capitalized within Property, Plant and Equipment and amortized to fuel expense using the units-of-production method. In 2020, PSEG Power recorded a $2 million lower of cost or market (LOCOM) adjustment to its fuel oil inventory due to the decline in market pricing. Property, Plant and Equipment PSE&G’s additions to and replacements of existing property, plant and equipment are capitalized at cost. The cost of maintenance, repair and replacement of minor items of property is charged to expense as incurred. At the time units of depreciable property are retired or otherwise disposed of, the original cost, adjusted for net salvage value, is charged to accumulated depreciation. 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. Leases Effective January 1, 2019, PSEG and its subsidiaries adopted new accounting guidance which requires lessees to recognize leases with a term greater than 12 months on the balance sheet using a right-of-use asset approach. PSEG and its subsidiaries, when acting as lessee or lessor, determine if an arrangement is a lease at inception. PSEG assesses contracts to determine if the arrangement conveys (i) the right to control the use of the identified property, (ii) the right to obtain substantially all of the economic benefits from the use of the property, and (iii) the right to direct the use of the property. PSEG and its subsidiaries are neither the lessee nor the lessor in any material leases that are not classified as operating leases. Lessee —Operating Lease Right-of-Use Assets represent the right to use an underlying asset for the lease term and Operating Lease Liabilities represent the obligation to make lease payments arising from the lease. Operating Lease Right-of-Use Assets and Operating Lease Liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. The current portion of Operating Lease Liabilities is included in Other Current Liabilities. Operating Lease Right-of-Use Assets and noncurrent Operating Lease Liabilities are included as separate captions in Noncurrent Assets and Noncurrent Liabilities, respectively, on the Consolidated Balance Sheets of PSEG, PSE&G and PSEG Power. PSEG and its subsidiaries do not recognize Operating Lease Right-of-Use Assets and Operating Lease Liabilities for leases where the term is twelve months or less. PSEG and its subsidiaries recognize the lease payments on a straight-line basis over the term of the leases and variable lease payments in the period in which the obligations for those payments are incurred. As lessee, most of the operating leases of PSEG and its subsidiaries do not provide an implicit rate; therefore, incremental borrowing rates are used based on the information available at commencement date in determining the present value of lease payments. The implicit rate is used when readily determinable. PSE&G’s incremental borrowing rates are based on secured borrowing rates. PSEG’s and PSEG Power’s incremental borrowing rates are generally unsecured rates. Having calculated simulated secured rates for each of PSEG and PSEG Power, it was determined that the difference between the unsecured borrowing rates and the simulated secured rates had an immaterial effect on their recorded Operating Lease Right-of-Use Assets and Operating Lease Liabilities. Services, PSEG LI and other subsidiaries of PSEG that do not borrow funds or issue debt may enter into leases. Since these companies do not have credit ratings and related incremental borrowing rates, PSEG has determined that it is appropriate for these companies to use the incremental borrowing rate of PSEG, the parent company. Lease terms may include options to extend or terminate the lease when it is reasonably certain that such options will be exercised. PSEG and its subsidiaries have lease agreements with lease and non-lease components. For real estate, equipment and vehicle leases, the lease and non-lease components are accounted for as a single lease component. Lessor —Property subject to operating leases, where PSEG or one of its subsidiaries is the lessor, is included in Property, Plant and Equipment and rental income from these leases is included in Operating Revenues. PSEG and its subsidiaries, have lease agreements with lease and non-lease components, which are primarily related to domestic energy generation including solar generation facilities. PSEG and subsidiaries account for the lease and non-lease components as a single lease component. See Note 8. Leases for detailed information on leases. Energy Holdings is the lessor in leveraged leases. Leveraged lease accounting guidance is grandfathered for existing leveraged leases. Energy Holdings’ leveraged leases are accounted for in Operating Revenues and in Noncurrent Long-Term Investments. If modified after January 1, 2019, those leveraged leases will be accounted for as operating or financing leases. See Note 9. Long-Term Investments and Note 10. Financing Receivables. Trust Investments These securities comprise the Nuclear Decommissioning Trust (NDT) Fund, a master independent external trust account maintained to provide for the costs of decommissioning upon termination of operations of PSEG Power’s nuclear facilities and amounts that are deposited to fund a Rabbi Trust which was established to meet the obligations related to non-qualified pension plans and deferred compensation plans. Unrealized gains and losses on equity security investments are recorded in Net Income. The debt securities are classified as available-for-sale with the unrealized gains and losses recorded as a component of Accumulated Other Comprehensive Income (Loss). Realized gains and losses on both equity and available-for-sale debt security investments are recorded in earnings and are included with the unrealized gains and losses on equity securities in Net Gains (Losses) on Trust Investments. Other-than-temporary impairments on NDT and Rabbi Trust debt securities are also included in Net Gains (Losses) on Trust Investments. See Note 11. Trust Investments for further discussion. Pension and Other Postretirement Benefits (OPEB) Plans The market-related value of plan assets held for the qualified pension and OPEB plans is equal to the fair value of those assets as of year-end. Fair value is determined using quoted market prices and independent pricing services based upon the security type as reported by the trustee at the measurement date (December 31) as well as investments in unlisted real estate which are valued via third-party appraisals. PSEG recognizes a long-term receivable primarily related to future funding by LIPA of Servco’s recognized pension and OPEB liabilities. This receivable is presented separately on the Consolidated Balance Sheet of PSEG as a noncurrent asset. Pursuant to the OSA, Servco records expense for contributions to its pension plan trusts and for OPEB payments made to retirees. See Note 14. Pension, Other Postretirement Benefits (OPEB) and Savings Plans for further discussion. Basis Adjustment PSE&G and PSEG Power have recorded a Basis Adjustment in their respective Consolidated Balance Sheets related to the generation assets that were transferred from PSE&G to PSEG Power in August 2000 at the price specified by the BPU. Because the transfer was between affiliates, the transaction was recorded at the net book value of the assets and liabilities rather than the transfer price. The difference between the total transfer price and the net book value of the generation-related assets and liabilities, $986 million, net of tax, was recorded as a Basis Adjustment on PSE&G’s and PSEG Power’s Consolidated Balance Sheets. The $986 million is an addition to PSE&G’s Common Stockholder’s Equity and a reduction of PSEG Power’s Member’s Equity. These amounts are eliminated on PSEG’s consolidated financial statements. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Recent Accounting Standards
Recent Accounting Standards | 12 Months Ended |
Dec. 31, 2020 | |
New Accounting Pronouncement [Line Items] | |
Recent Accounting Standards [Text Block] | Recent Accounting Standards New Standards Adopted in 2020 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 based on past events, current conditions and supportable forecasts over a reasonable period. For purchased financial assets with credit deterioration, a similar model is used; however, the initial allowance is added to the purchase price rather than reported as an allowance. Credit losses on available-for-sale debt securities are measured in a manner similar to current GAAP; however, this standard requires those credit losses 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 was 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 have been eliminated. The standard also adds certain other disclosure requirements for Level 3 fair value measurements. The standard was effective for annual and interim periods beginning after December 15, 2019. PSEG adopted this standard on January 1, 2020. Certain amendments in the standard have been applied prospectively in 2020. All other amendments of the standard were applied retrospectively to all periods presented. 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 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 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 was effective for annual and interim periods beginning after December 15, 2019. PSEG adopted this standard prospectively on January 1, 2020. Adoption of this standard did not have a material impact on the financial statements of PSEG, PSE&G and PSEG. 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 are 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. The new standard was 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 in the first quarter of 2020. 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 London Interbank Offered Rate (LIBOR) or another reference rate expected to be discontinued. The standard was 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. 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 adopted this standard on December 31, 2020. The amendments in the standard have been applied retrospectively to all periods presented. See Note 14. Pension, Other Postretirement Benefits (OPEB) and Savings Plans. New Standards Issued But Not Yet Adopted As of December 31, 2020 Simplifying the Accounting for Income Taxes — ASU 2019-12 This accounting standard updates ASC 740 to simplify the accounting for income taxes, including the elimination of several exceptions and making other clarifications to the current guidance. Some of the more pertinent modifications include a change to the tax accounting related to franchise taxes that are partially based on income, an election to allocate the consolidated tax expense to a disregarded entity that is a member of a consolidated tax return filing group when those entities issue separate financial statements, and modifications and clarifications to interim tax reporting. The standard is effective for fiscal years beginning after December 15, 2020 and early adoption is permitted. Amendments will be applied either on a retrospective, modified retrospective through a cumulative adjustment to Retained Earnings in the year of adoption, or on a prospective basis. PSEG adopted this standard on January 1, 2021. PSEG will be electing to allocate the consolidated tax expense to all eligible entities that are included in a consolidated tax filing. Making this election will be consistent with PSEG’s Tax Sharing Agreements with its affiliated subsidiaries, as stated in Note 1. Organization, Basis of Presentation and Summary of Significant Accounting Policies. Adoption of this standard did not have an impact on the financial statements of PSEG, PSE&G, and PSEG Power. 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 adopted this standard on January 1, 2021. Adoption of this standard did not have an impact on the financial statements of PSEG, PSE&G and PSEG Power. Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity — ASU 2020-06 This accounting standard simplifies the accounting for convertible debt and convertible preferred stock by removing the requirements to separately present certain conversion features in equity. In addition, the ASU eliminates certain criteria that must be satisfied in order to classify a contract as equity, which is expected to decrease the number of freestanding instruments and embedded derivatives accounted for as assets or liabilities. The ASU also revises the guidance on calculating earnings per share, requiring use of the if-converted method for all convertible instruments and rescinding the ability to rebut the presumption of share settlement for instruments that may be settled in cash or other assets. The standard is effective for fiscal years beginning after December 15, 2020. Amendments in this standard 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. Early adoption is permitted. PSEG adopted this standard on January 1, 2021. Adoption of this standard did not have an impact on the financial statements of PSEG, PSE&G and PSEG Power. Codification Improvements to Callable Debt Securities — ASU 2020-08 This accounting standard clarifies that an entity should reevaluate for each reporting period whether a purchased callable debt security that has multiple call dates is within the scope of certain guidance on nonrefundable fees and other costs related to receivables. The standard is effective for fiscal years beginning after December 15, 2020 and early adoption is not permitted. Amendments in this standard will be applied prospectively. PSEG adopted this standard on January 1, 2021. Adoption of this standard did not have an impact on the financial statements of PSEG, PSE&G and PSEG Power. Amendments to SEC Guidance in the Codification — ASU 2020-09 This accounting standard aligns the SEC guidance in the codification with the SEC rules issued in March 2020 relating to changes in the disclosure requirements for certain debt securities. Certain glossary terms were superseded and amendments were made to debt and other topics as a result of this update. The standard is effective on January 4, 2021 and early adoption is permitted. PSEG adopted the new SEC rules earlier in 2020 and has eliminated the footnote relating to the guarantors of debt, and now presents summarized Guarantor Financial Information in Item 7. Liquidity and Capital Resources. Codification Improvements — ASU 2020-10 This accounting standard conforms, clarifies, simplifies, and provides technical corrections to various codification topics. The standard is effective for fiscal years beginning after December 15, 2020 and early adoption is permitted. PSEG adopted this standard on January 1, 2021. Adoption of this standard did not have an impact on the financial statements of PSEG, PSE&G and PSEG Power. Reference Rate Reform Scope Refinement — ASU 2021-01 This accounting standard clarifies certain guidance related to derivative instruments affected by the market-wide change in the interest rates even if those derivatives do not reference t he LIBOR o r another rate that is expected to be discontinued as a result of reference rate reform. The accounting standard also clarifies other aspects of the relief provided in the reference rate reform GAAP guidance. |
PSEG Power LLC | |
New Accounting Pronouncement [Line Items] | |
Recent Accounting Standards [Text Block] | Recent Accounting Standards New Standards Adopted in 2020 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 based on past events, current conditions and supportable forecasts over a reasonable period. For purchased financial assets with credit deterioration, a similar model is used; however, the initial allowance is added to the purchase price rather than reported as an allowance. Credit losses on available-for-sale debt securities are measured in a manner similar to current GAAP; however, this standard requires those credit losses 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 was 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 have been eliminated. The standard also adds certain other disclosure requirements for Level 3 fair value measurements. The standard was effective for annual and interim periods beginning after December 15, 2019. PSEG adopted this standard on January 1, 2020. Certain amendments in the standard have been applied prospectively in 2020. All other amendments of the standard were applied retrospectively to all periods presented. 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 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 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 was effective for annual and interim periods beginning after December 15, 2019. PSEG adopted this standard prospectively on January 1, 2020. Adoption of this standard did not have a material impact on the financial statements of PSEG, PSE&G and PSEG. 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 are 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. The new standard was 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 in the first quarter of 2020. 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 London Interbank Offered Rate (LIBOR) or another reference rate expected to be discontinued. The standard was 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. 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 adopted this standard on December 31, 2020. The amendments in the standard have been applied retrospectively to all periods presented. See Note 14. Pension, Other Postretirement Benefits (OPEB) and Savings Plans. New Standards Issued But Not Yet Adopted As of December 31, 2020 Simplifying the Accounting for Income Taxes — ASU 2019-12 This accounting standard updates ASC 740 to simplify the accounting for income taxes, including the elimination of several exceptions and making other clarifications to the current guidance. Some of the more pertinent modifications include a change to the tax accounting related to franchise taxes that are partially based on income, an election to allocate the consolidated tax expense to a disregarded entity that is a member of a consolidated tax return filing group when those entities issue separate financial statements, and modifications and clarifications to interim tax reporting. The standard is effective for fiscal years beginning after December 15, 2020 and early adoption is permitted. Amendments will be applied either on a retrospective, modified retrospective through a cumulative adjustment to Retained Earnings in the year of adoption, or on a prospective basis. PSEG adopted this standard on January 1, 2021. PSEG will be electing to allocate the consolidated tax expense to all eligible entities that are included in a consolidated tax filing. Making this election will be consistent with PSEG’s Tax Sharing Agreements with its affiliated subsidiaries, as stated in Note 1. Organization, Basis of Presentation and Summary of Significant Accounting Policies. Adoption of this standard did not have an impact on the financial statements of PSEG, PSE&G, and PSEG Power. 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 adopted this standard on January 1, 2021. Adoption of this standard did not have an impact on the financial statements of PSEG, PSE&G and PSEG Power. Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity — ASU 2020-06 This accounting standard simplifies the accounting for convertible debt and convertible preferred stock by removing the requirements to separately present certain conversion features in equity. In addition, the ASU eliminates certain criteria that must be satisfied in order to classify a contract as equity, which is expected to decrease the number of freestanding instruments and embedded derivatives accounted for as assets or liabilities. The ASU also revises the guidance on calculating earnings per share, requiring use of the if-converted method for all convertible instruments and rescinding the ability to rebut the presumption of share settlement for instruments that may be settled in cash or other assets. The standard is effective for fiscal years beginning after December 15, 2020. Amendments in this standard 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. Early adoption is permitted. PSEG adopted this standard on January 1, 2021. Adoption of this standard did not have an impact on the financial statements of PSEG, PSE&G and PSEG Power. Codification Improvements to Callable Debt Securities — ASU 2020-08 This accounting standard clarifies that an entity should reevaluate for each reporting period whether a purchased callable debt security that has multiple call dates is within the scope of certain guidance on nonrefundable fees and other costs related to receivables. The standard is effective for fiscal years beginning after December 15, 2020 and early adoption is not permitted. Amendments in this standard will be applied prospectively. PSEG adopted this standard on January 1, 2021. Adoption of this standard did not have an impact on the financial statements of PSEG, PSE&G and PSEG Power. Amendments to SEC Guidance in the Codification — ASU 2020-09 This accounting standard aligns the SEC guidance in the codification with the SEC rules issued in March 2020 relating to changes in the disclosure requirements for certain debt securities. Certain glossary terms were superseded and amendments were made to debt and other topics as a result of this update. The standard is effective on January 4, 2021 and early adoption is permitted. PSEG adopted the new SEC rules earlier in 2020 and has eliminated the footnote relating to the guarantors of debt, and now presents summarized Guarantor Financial Information in Item 7. Liquidity and Capital Resources. Codification Improvements — ASU 2020-10 This accounting standard conforms, clarifies, simplifies, and provides technical corrections to various codification topics. The standard is effective for fiscal years beginning after December 15, 2020 and early adoption is permitted. PSEG adopted this standard on January 1, 2021. Adoption of this standard did not have an impact on the financial statements of PSEG, PSE&G and PSEG Power. Reference Rate Reform Scope Refinement — ASU 2021-01 This accounting standard clarifies certain guidance related to derivative instruments affected by the market-wide change in the interest rates even if those derivatives do not reference t he LIBOR o r another rate that is expected to be discontinued as a result of reference rate reform. The accounting standard also clarifies other aspects of the relief provided in the reference rate reform GAAP guidance. |
Public Service Electric and Gas Company | |
New Accounting Pronouncement [Line Items] | |
Recent Accounting Standards [Text Block] | Recent Accounting Standards New Standards Adopted in 2020 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 based on past events, current conditions and supportable forecasts over a reasonable period. For purchased financial assets with credit deterioration, a similar model is used; however, the initial allowance is added to the purchase price rather than reported as an allowance. Credit losses on available-for-sale debt securities are measured in a manner similar to current GAAP; however, this standard requires those credit losses 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 was 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 have been eliminated. The standard also adds certain other disclosure requirements for Level 3 fair value measurements. The standard was effective for annual and interim periods beginning after December 15, 2019. PSEG adopted this standard on January 1, 2020. Certain amendments in the standard have been applied prospectively in 2020. All other amendments of the standard were applied retrospectively to all periods presented. 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 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 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 was effective for annual and interim periods beginning after December 15, 2019. PSEG adopted this standard prospectively on January 1, 2020. Adoption of this standard did not have a material impact on the financial statements of PSEG, PSE&G and PSEG. 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 are 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. The new standard was 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 in the first quarter of 2020. 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 London Interbank Offered Rate (LIBOR) or another reference rate expected to be discontinued. The standard was 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. 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 adopted this standard on December 31, 2020. The amendments in the standard have been applied retrospectively to all periods presented. See Note 14. Pension, Other Postretirement Benefits (OPEB) and Savings Plans. New Standards Issued But Not Yet Adopted As of December 31, 2020 Simplifying the Accounting for Income Taxes — ASU 2019-12 This accounting standard updates ASC 740 to simplify the accounting for income taxes, including the elimination of several exceptions and making other clarifications to the current guidance. Some of the more pertinent modifications include a change to the tax accounting related to franchise taxes that are partially based on income, an election to allocate the consolidated tax expense to a disregarded entity that is a member of a consolidated tax return filing group when those entities issue separate financial statements, and modifications and clarifications to interim tax reporting. The standard is effective for fiscal years beginning after December 15, 2020 and early adoption is permitted. Amendments will be applied either on a retrospective, modified retrospective through a cumulative adjustment to Retained Earnings in the year of adoption, or on a prospective basis. PSEG adopted this standard on January 1, 2021. PSEG will be electing to allocate the consolidated tax expense to all eligible entities that are included in a consolidated tax filing. Making this election will be consistent with PSEG’s Tax Sharing Agreements with its affiliated subsidiaries, as stated in Note 1. Organization, Basis of Presentation and Summary of Significant Accounting Policies. Adoption of this standard did not have an impact on the financial statements of PSEG, PSE&G, and PSEG Power. 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 adopted this standard on January 1, 2021. Adoption of this standard did not have an impact on the financial statements of PSEG, PSE&G and PSEG Power. Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity — ASU 2020-06 This accounting standard simplifies the accounting for convertible debt and convertible preferred stock by removing the requirements to separately present certain conversion features in equity. In addition, the ASU eliminates certain criteria that must be satisfied in order to classify a contract as equity, which is expected to decrease the number of freestanding instruments and embedded derivatives accounted for as assets or liabilities. The ASU also revises the guidance on calculating earnings per share, requiring use of the if-converted method for all convertible instruments and rescinding the ability to rebut the presumption of share settlement for instruments that may be settled in cash or other assets. The standard is effective for fiscal years beginning after December 15, 2020. Amendments in this standard 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. Early adoption is permitted. PSEG adopted this standard on January 1, 2021. Adoption of this standard did not have an impact on the financial statements of PSEG, PSE&G and PSEG Power. Codification Improvements to Callable Debt Securities — ASU 2020-08 This accounting standard clarifies that an entity should reevaluate for each reporting period whether a purchased callable debt security that has multiple call dates is within the scope of certain guidance on nonrefundable fees and other costs related to receivables. The standard is effective for fiscal years beginning after December 15, 2020 and early adoption is not permitted. Amendments in this standard will be applied prospectively. PSEG adopted this standard on January 1, 2021. Adoption of this standard did not have an impact on the financial statements of PSEG, PSE&G and PSEG Power. Amendments to SEC Guidance in the Codification — ASU 2020-09 This accounting standard aligns the SEC guidance in the codification with the SEC rules issued in March 2020 relating to changes in the disclosure requirements for certain debt securities. Certain glossary terms were superseded and amendments were made to debt and other topics as a result of this update. The standard is effective on January 4, 2021 and early adoption is permitted. PSEG adopted the new SEC rules earlier in 2020 and has eliminated the footnote relating to the guarantors of debt, and now presents summarized Guarantor Financial Information in Item 7. Liquidity and Capital Resources. Codification Improvements — ASU 2020-10 This accounting standard conforms, clarifies, simplifies, and provides technical corrections to various codification topics. The standard is effective for fiscal years beginning after December 15, 2020 and early adoption is permitted. PSEG adopted this standard on January 1, 2021. Adoption of this standard did not have an impact on the financial statements of PSEG, PSE&G and PSEG Power. Reference Rate Reform Scope Refinement — ASU 2021-01 This accounting standard clarifies certain guidance related to derivative instruments affected by the market-wide change in the interest rates even if those derivatives do not reference t he LIBOR o r another rate that is expected to be discontinued as a result of reference rate reform. The accounting standard also clarifies other aspects of the relief provided in the reference rate reform GAAP guidance. |
Revenues Revenues
Revenues Revenues | 12 Months Ended |
Dec. 31, 2020 | |
Revenues | 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 service(s) 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 on average within 30 days 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 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 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 18. 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, 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 Year Ended December 31, 2020 Revenues from Contracts with Customers Electric Distribution $ 3,130 $ — $ — $ — $ 3,130 Gas Distribution 1,646 — — (12) 1,634 Transmission 1,485 — — — 1,485 Electricity and Related Product Sales PJM Third-Party Sales — 1,551 — — 1,551 Sales to Affiliates — 447 — (447) — NY-ISO — 124 — — 124 ISO-NE — 126 — — 126 Gas Sales Third-Party Sales — 83 — — 83 Sales to Affiliates — 771 — (771) — Other Revenues from Contracts with Customers (A) 338 45 587 (4) 966 Total Revenues from Contracts with Customers 6,599 3,147 587 (1,234) 9,099 Revenues Unrelated to Contracts with Customers (B) 9 487 8 — 504 Total Operating Revenues $ 6,608 $ 3,634 $ 595 $ (1,234) $ 9,603 PSE&G PSEG Power Other Eliminations Consolidated Millions Year Ended December 31, 2019 Revenues from Contracts with Customers Electric Distribution $ 3,224 $ — $ — $ — $ 3,224 Gas Distribution 1,870 — — (15) 1,855 Transmission 1,181 — — — 1,181 Electricity and Related Product Sales PJM Third-Party Sales — 1,785 — — 1,785 Sales to Affiliates — 536 — (536) — NY-ISO — 143 — — 143 ISO-NE — 137 — — 137 Gas Sales Third-Party Sales — 92 — — 92 Sales to Affiliates — 927 — (927) — Other Revenues from Contracts with Customers (A) 284 46 566 (5) 891 Total Revenues from Contracts with Customers 6,559 3,666 566 (1,483) 9,308 Revenues Unrelated to Contracts with Customers (B) 66 719 (17) — 768 Total Operating Revenues $ 6,625 $ 4,385 $ 549 $ (1,483) $ 10,076 PSE&G PSEG Power Other Eliminations Consolidated Millions Year Ended December 31, 2018 Revenues from Contracts with Customers Electric Distribution $ 3,131 $ — $ — $ — $ 3,131 Gas Distribution 1,756 — — (18) 1,738 Transmission 1,236 — — — 1,236 Electricity and Related Product Sales PJM Third-Party Sales — 1,933 — — 1,933 Sales to Affiliates — 609 — (609) — NY-ISO — 209 — — 209 ISO-NE — 92 — — 92 Gas Sales Third-Party Sales — 151 — — 151 Sales to Affiliates — 861 — (861) — Other Revenues from Contracts with Customers (A) 275 44 532 (4) 847 Total Revenues from Contracts with Customers 6,398 3,899 532 (1,492) 9,337 Revenues Unrelated to Contracts with Customers (B) 73 247 39 — 359 Total Operating Revenues $ 6,471 $ 4,146 $ 571 $ (1,492) $ 9,696 (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. For the years ended December 31, 2020, 2019 and 2018, Other includes losses of $26 million, $58 million and $8 million, respectively, related to Energy Holdings’ investments in leases. For additional information, see Note 9. Long-Term Investments. 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 December 31, 2020 and 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 14% and 6% of accounts receivable (including unbilled revenues in 2020) as of December 31, 2020 and 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. The following provides a reconciliation of PSE&G’s allowance for credit losses for the years ended December 31, 2020 and 2019. 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 December 31, 2020. PSE&G’s electric bad debt expense is recoverable through its Societal Benefits Clause mechanism. As of December 31, 2020, PSE&G deferred incremental gas bad debt expense for future regulatory recovery due to the impact of the ongoing pandemic. See Note 7. Regulatory Assets and Liabilities for additional information. Years Ended December 31, 2020 2019 Millions Balance at Beginning of Year $ 68 (A) $ 63 Utility Customer and Other Accounts Provision 175 87 Write-offs, net of Recoveries of $5 million and $8 million (37) (90) Balance at End of Year $ 206 $ 60 (A) Includes an $8 million pre-tax increase upon adoption of ASU 2016-13. PSEG Power PSEG Power generally collects consideration upon satisfaction of performance obligations, and therefore, PSEG Power had no material contract balances as of December 31, 2020 and 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 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 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 December 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 does not have any material contract balances as of December 31, 2020 and 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 mid-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 Megawatt (MW)-Day MW Cleared June 2020 to May 2021 $167 7,600 June 2021 to May 2022 $180 7,000 Capacity Payments from the ISO-NE Forward Capacity Market (FCM) —The 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 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 $152 930 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 $146 million. Other |
Public Service Electric and Gas Company | |
Revenues | 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 service(s) 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 on average within 30 days 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 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 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 18. 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, 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 Year Ended December 31, 2020 Revenues from Contracts with Customers Electric Distribution $ 3,130 $ — $ — $ — $ 3,130 Gas Distribution 1,646 — — (12) 1,634 Transmission 1,485 — — — 1,485 Electricity and Related Product Sales PJM Third-Party Sales — 1,551 — — 1,551 Sales to Affiliates — 447 — (447) — NY-ISO — 124 — — 124 ISO-NE — 126 — — 126 Gas Sales Third-Party Sales — 83 — — 83 Sales to Affiliates — 771 — (771) — Other Revenues from Contracts with Customers (A) 338 45 587 (4) 966 Total Revenues from Contracts with Customers 6,599 3,147 587 (1,234) 9,099 Revenues Unrelated to Contracts with Customers (B) 9 487 8 — 504 Total Operating Revenues $ 6,608 $ 3,634 $ 595 $ (1,234) $ 9,603 PSE&G PSEG Power Other Eliminations Consolidated Millions Year Ended December 31, 2019 Revenues from Contracts with Customers Electric Distribution $ 3,224 $ — $ — $ — $ 3,224 Gas Distribution 1,870 — — (15) 1,855 Transmission 1,181 — — — 1,181 Electricity and Related Product Sales PJM Third-Party Sales — 1,785 — — 1,785 Sales to Affiliates — 536 — (536) — NY-ISO — 143 — — 143 ISO-NE — 137 — — 137 Gas Sales Third-Party Sales — 92 — — 92 Sales to Affiliates — 927 — (927) — Other Revenues from Contracts with Customers (A) 284 46 566 (5) 891 Total Revenues from Contracts with Customers 6,559 3,666 566 (1,483) 9,308 Revenues Unrelated to Contracts with Customers (B) 66 719 (17) — 768 Total Operating Revenues $ 6,625 $ 4,385 $ 549 $ (1,483) $ 10,076 PSE&G PSEG Power Other Eliminations Consolidated Millions Year Ended December 31, 2018 Revenues from Contracts with Customers Electric Distribution $ 3,131 $ — $ — $ — $ 3,131 Gas Distribution 1,756 — — (18) 1,738 Transmission 1,236 — — — 1,236 Electricity and Related Product Sales PJM Third-Party Sales — 1,933 — — 1,933 Sales to Affiliates — 609 — (609) — NY-ISO — 209 — — 209 ISO-NE — 92 — — 92 Gas Sales Third-Party Sales — 151 — — 151 Sales to Affiliates — 861 — (861) — Other Revenues from Contracts with Customers (A) 275 44 532 (4) 847 Total Revenues from Contracts with Customers 6,398 3,899 532 (1,492) 9,337 Revenues Unrelated to Contracts with Customers (B) 73 247 39 — 359 Total Operating Revenues $ 6,471 $ 4,146 $ 571 $ (1,492) $ 9,696 (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. For the years ended December 31, 2020, 2019 and 2018, Other includes losses of $26 million, $58 million and $8 million, respectively, related to Energy Holdings’ investments in leases. For additional information, see Note 9. Long-Term Investments. 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 December 31, 2020 and 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 14% and 6% of accounts receivable (including unbilled revenues in 2020) as of December 31, 2020 and 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. The following provides a reconciliation of PSE&G’s allowance for credit losses for the years ended December 31, 2020 and 2019. 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 December 31, 2020. PSE&G’s electric bad debt expense is recoverable through its Societal Benefits Clause mechanism. As of December 31, 2020, PSE&G deferred incremental gas bad debt expense for future regulatory recovery due to the impact of the ongoing pandemic. See Note 7. Regulatory Assets and Liabilities for additional information. Years Ended December 31, 2020 2019 Millions Balance at Beginning of Year $ 68 (A) $ 63 Utility Customer and Other Accounts Provision 175 87 Write-offs, net of Recoveries of $5 million and $8 million (37) (90) Balance at End of Year $ 206 $ 60 (A) Includes an $8 million pre-tax increase upon adoption of ASU 2016-13. PSEG Power PSEG Power generally collects consideration upon satisfaction of performance obligations, and therefore, PSEG Power had no material contract balances as of December 31, 2020 and 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 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 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 December 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 does not have any material contract balances as of December 31, 2020 and 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 mid-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 Megawatt (MW)-Day MW Cleared June 2020 to May 2021 $167 7,600 June 2021 to May 2022 $180 7,000 Capacity Payments from the ISO-NE Forward Capacity Market (FCM) —The 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 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 $152 930 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 $146 million. Other |
PSEG Power LLC | |
Revenues | 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 service(s) 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 on average within 30 days 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 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 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 18. 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, 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 Year Ended December 31, 2020 Revenues from Contracts with Customers Electric Distribution $ 3,130 $ — $ — $ — $ 3,130 Gas Distribution 1,646 — — (12) 1,634 Transmission 1,485 — — — 1,485 Electricity and Related Product Sales PJM Third-Party Sales — 1,551 — — 1,551 Sales to Affiliates — 447 — (447) — NY-ISO — 124 — — 124 ISO-NE — 126 — — 126 Gas Sales Third-Party Sales — 83 — — 83 Sales to Affiliates — 771 — (771) — Other Revenues from Contracts with Customers (A) 338 45 587 (4) 966 Total Revenues from Contracts with Customers 6,599 3,147 587 (1,234) 9,099 Revenues Unrelated to Contracts with Customers (B) 9 487 8 — 504 Total Operating Revenues $ 6,608 $ 3,634 $ 595 $ (1,234) $ 9,603 PSE&G PSEG Power Other Eliminations Consolidated Millions Year Ended December 31, 2019 Revenues from Contracts with Customers Electric Distribution $ 3,224 $ — $ — $ — $ 3,224 Gas Distribution 1,870 — — (15) 1,855 Transmission 1,181 — — — 1,181 Electricity and Related Product Sales PJM Third-Party Sales — 1,785 — — 1,785 Sales to Affiliates — 536 — (536) — NY-ISO — 143 — — 143 ISO-NE — 137 — — 137 Gas Sales Third-Party Sales — 92 — — 92 Sales to Affiliates — 927 — (927) — Other Revenues from Contracts with Customers (A) 284 46 566 (5) 891 Total Revenues from Contracts with Customers 6,559 3,666 566 (1,483) 9,308 Revenues Unrelated to Contracts with Customers (B) 66 719 (17) — 768 Total Operating Revenues $ 6,625 $ 4,385 $ 549 $ (1,483) $ 10,076 PSE&G PSEG Power Other Eliminations Consolidated Millions Year Ended December 31, 2018 Revenues from Contracts with Customers Electric Distribution $ 3,131 $ — $ — $ — $ 3,131 Gas Distribution 1,756 — — (18) 1,738 Transmission 1,236 — — — 1,236 Electricity and Related Product Sales PJM Third-Party Sales — 1,933 — — 1,933 Sales to Affiliates — 609 — (609) — NY-ISO — 209 — — 209 ISO-NE — 92 — — 92 Gas Sales Third-Party Sales — 151 — — 151 Sales to Affiliates — 861 — (861) — Other Revenues from Contracts with Customers (A) 275 44 532 (4) 847 Total Revenues from Contracts with Customers 6,398 3,899 532 (1,492) 9,337 Revenues Unrelated to Contracts with Customers (B) 73 247 39 — 359 Total Operating Revenues $ 6,471 $ 4,146 $ 571 $ (1,492) $ 9,696 (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. For the years ended December 31, 2020, 2019 and 2018, Other includes losses of $26 million, $58 million and $8 million, respectively, related to Energy Holdings’ investments in leases. For additional information, see Note 9. Long-Term Investments. 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 December 31, 2020 and 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 14% and 6% of accounts receivable (including unbilled revenues in 2020) as of December 31, 2020 and 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. The following provides a reconciliation of PSE&G’s allowance for credit losses for the years ended December 31, 2020 and 2019. 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 December 31, 2020. PSE&G’s electric bad debt expense is recoverable through its Societal Benefits Clause mechanism. As of December 31, 2020, PSE&G deferred incremental gas bad debt expense for future regulatory recovery due to the impact of the ongoing pandemic. See Note 7. Regulatory Assets and Liabilities for additional information. Years Ended December 31, 2020 2019 Millions Balance at Beginning of Year $ 68 (A) $ 63 Utility Customer and Other Accounts Provision 175 87 Write-offs, net of Recoveries of $5 million and $8 million (37) (90) Balance at End of Year $ 206 $ 60 (A) Includes an $8 million pre-tax increase upon adoption of ASU 2016-13. PSEG Power PSEG Power generally collects consideration upon satisfaction of performance obligations, and therefore, PSEG Power had no material contract balances as of December 31, 2020 and 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 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 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 December 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 does not have any material contract balances as of December 31, 2020 and 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 mid-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 Megawatt (MW)-Day MW Cleared June 2020 to May 2021 $167 7,600 June 2021 to May 2022 $180 7,000 Capacity Payments from the ISO-NE Forward Capacity Market (FCM) —The 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 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 $152 930 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 $146 million. Other |
Early Plant Retirements Early P
Early Plant Retirements Early Plant Retirements | 12 Months Ended |
Dec. 31, 2020 | |
Restructuring Cost and Reserve [Line Items] | |
Early Plant Retirements [Text Block] | 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. For instance, the New Jersey Rate Counsel, in written comments filed with the BPU, has advocated for the BPU to offset market benefits resulting from New Jersey’s rejoining the Regional Greenhouse Gas Initiative from the ZEC payment. PSEG intends to vigorously defend against these arguments. Due to its preliminary nature, PSEG cannot predict the outcome of this matter. The BPU’s decision awarding ZECs has been appealed by the New Jersey Rate Counsel. PSEG cannot predict the outcome of this matter. In October 2020, PSEG Power filed with the BPU its ZEC applications for Salem 1, Salem 2 and Hope Creek for the three-year eligibility period starting in June 2022. No other plants applied for ZECs for this eligibility period. PSEG Power is not aware of any changes from its ZEC application for the first eligibility period that would materially affect its ability to establish eligibility to be awarded ZECs during the second eligibility period. A final BPU decision is expected in April 2021. PSEG cannot predict the outcome of this matter. In the event that (i) the ZEC program is overturned or is otherwise materially adversely modified through legal process; (ii) the amount of ZEC payments that may be awarded or other terms and conditions of the second ZEC eligibility period proposed by the BPU in its final decision 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 cease to operate all of these plants. 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 (CWA) and related state regulations, or other factors, PSEG Power will take all necessary steps to cease to operate all of these plants and will incur associated costs and accounting charges. These may include, among other things, one-time impairment charges or accelerated D&A Expense on the remaining carrying value of the plants, 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 NDT Fund, which would be material to both PSEG and PSEG Power. Non-Nuclear In July 2020, PSEG announced that it is exploring strategic alternatives for PSEG Power’s non-nuclear generating fleet, which includes more than 6,750 MW of fossil generation located in New Jersey, Connecticut, New York and Maryland as well as the 467 MW Solar Source portfolio located in various states. PSEG intends to retain ownership of PSEG Power’s existing nuclear fleet. The marketing of a potential transaction in one or a series of steps launched in the fourth quarter of 2020, and any potential transaction is expected to be completed sometime in 2021. As a result of the strategic review of PSEG Power’s non-nuclear generating assets, and the launch in the fourth quarter of 2020 of an associated marketing process for their potential disposition, PSEG Power performed an impairment assessment of its PJM, NYISO and ISO-NE asset groupings, as well as for its solar assets, as of September 30, 2020 and December 31, 2020. The assessments included probability weightings assigned to undiscounted cash flow scenarios of retaining the assets through the end of their estimated useful lives and a successful disposition of the non-nuclear assets in 2021. Estimates of cash flows associated with a sale scenario were based on management’s expectations of the fair value of such assets. The probability weighted aggregation of undiscounted cash flows for each of the asset groupings expected to result from the use and potential disposition of the asset groups exceeded their carrying value at the above mentioned September 30, 2020 and December 31, 2020 assessment dates. As such, it demonstrated that no impairment exists for any of the asset groupings and they continue to remain classified as held-for-use as of December 31, 2020. However, certain assumptions are subject to change as the potential sales and marketing process progresses. The carrying value of the fossil generation and of the solar assets (net of eligible investment tax credits (ITC)) was $4.5 billion and $560 million, respectively, as of December 31, 2020. There is no assurance that the strategic review will result in a sale or other disposition of all or any portion of these assets on terms that are favorable to us, or at all. Any transaction would be subject to market conditions and customary closing conditions, including the receipt of all required regulatory approvals. Management expects that a change in the probability of a successful disposition based upon further progression in the marketing process, but prior to meeting all necessary held-for-sale classification criteria, would result in an impairment of the ISO-NE asset grouping, which would be material. Furthermore, a change to a held-for-sale classification from a held-for-use classification would result in an impairment of the PJM, NYISO and ISO-NE asset groupings, which would be material. In September 2020, PSEG Power completed the sale of its ownership interest in the Yards Creek generation facility. PSEG Power recorded a pre-tax gain on disposition of approximately $122 million in the third quarter of 2020 as the sale price was greater than book value. In September 2019, PSEG Power completed the sale of its ownership interests in the Keystone and Conemaugh generation plants and related assets and liabilities. PSEG Power recorded a pre-tax loss on disposition of approximately $400 million in the second quarter of 2019 as the sale price was less than book value. In December 2018, PSEG Power completed the sale of the sites of the retired Hudson and Mercer units. PSEG Power transferred all land rights and structures on the sites to a third-party purchaser, along with the assumption of the environmental liabilities for the sites. As a result of the sale and transfer of liabilities, PSEG Power recorded a pre-tax gain in 2018 of $54 million. |
PSEG Power LLC | |
Restructuring Cost and Reserve [Line Items] | |
Early Plant Retirements [Text Block] | 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. For instance, the New Jersey Rate Counsel, in written comments filed with the BPU, has advocated for the BPU to offset market benefits resulting from New Jersey’s rejoining the Regional Greenhouse Gas Initiative from the ZEC payment. PSEG intends to vigorously defend against these arguments. Due to its preliminary nature, PSEG cannot predict the outcome of this matter. The BPU’s decision awarding ZECs has been appealed by the New Jersey Rate Counsel. PSEG cannot predict the outcome of this matter. In October 2020, PSEG Power filed with the BPU its ZEC applications for Salem 1, Salem 2 and Hope Creek for the three-year eligibility period starting in June 2022. No other plants applied for ZECs for this eligibility period. PSEG Power is not aware of any changes from its ZEC application for the first eligibility period that would materially affect its ability to establish eligibility to be awarded ZECs during the second eligibility period. A final BPU decision is expected in April 2021. PSEG cannot predict the outcome of this matter. In the event that (i) the ZEC program is overturned or is otherwise materially adversely modified through legal process; (ii) the amount of ZEC payments that may be awarded or other terms and conditions of the second ZEC eligibility period proposed by the BPU in its final decision 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 cease to operate all of these plants. 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 (CWA) and related state regulations, or other factors, PSEG Power will take all necessary steps to cease to operate all of these plants and will incur associated costs and accounting charges. These may include, among other things, one-time impairment charges or accelerated D&A Expense on the remaining carrying value of the plants, 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 NDT Fund, which would be material to both PSEG and PSEG Power. Non-Nuclear In July 2020, PSEG announced that it is exploring strategic alternatives for PSEG Power’s non-nuclear generating fleet, which includes more than 6,750 MW of fossil generation located in New Jersey, Connecticut, New York and Maryland as well as the 467 MW Solar Source portfolio located in various states. PSEG intends to retain ownership of PSEG Power’s existing nuclear fleet. The marketing of a potential transaction in one or a series of steps launched in the fourth quarter of 2020, and any potential transaction is expected to be completed sometime in 2021. As a result of the strategic review of PSEG Power’s non-nuclear generating assets, and the launch in the fourth quarter of 2020 of an associated marketing process for their potential disposition, PSEG Power performed an impairment assessment of its PJM, NYISO and ISO-NE asset groupings, as well as for its solar assets, as of September 30, 2020 and December 31, 2020. The assessments included probability weightings assigned to undiscounted cash flow scenarios of retaining the assets through the end of their estimated useful lives and a successful disposition of the non-nuclear assets in 2021. Estimates of cash flows associated with a sale scenario were based on management’s expectations of the fair value of such assets. The probability weighted aggregation of undiscounted cash flows for each of the asset groupings expected to result from the use and potential disposition of the asset groups exceeded their carrying value at the above mentioned September 30, 2020 and December 31, 2020 assessment dates. As such, it demonstrated that no impairment exists for any of the asset groupings and they continue to remain classified as held-for-use as of December 31, 2020. However, certain assumptions are subject to change as the potential sales and marketing process progresses. The carrying value of the fossil generation and of the solar assets (net of eligible investment tax credits (ITC)) was $4.5 billion and $560 million, respectively, as of December 31, 2020. There is no assurance that the strategic review will result in a sale or other disposition of all or any portion of these assets on terms that are favorable to us, or at all. Any transaction would be subject to market conditions and customary closing conditions, including the receipt of all required regulatory approvals. Management expects that a change in the probability of a successful disposition based upon further progression in the marketing process, but prior to meeting all necessary held-for-sale classification criteria, would result in an impairment of the ISO-NE asset grouping, which would be material. Furthermore, a change to a held-for-sale classification from a held-for-use classification would result in an impairment of the PJM, NYISO and ISO-NE asset groupings, which would be material. In September 2020, PSEG Power completed the sale of its ownership interest in the Yards Creek generation facility. PSEG Power recorded a pre-tax gain on disposition of approximately $122 million in the third quarter of 2020 as the sale price was greater than book value. In September 2019, PSEG Power completed the sale of its ownership interests in the Keystone and Conemaugh generation plants and related assets and liabilities. PSEG Power recorded a pre-tax loss on disposition of approximately $400 million in the second quarter of 2019 as the sale price was less than book value. In December 2018, PSEG Power completed the sale of the sites of the retired Hudson and Mercer units. PSEG Power transferred all land rights and structures on the sites to a third-party purchaser, along with the assumption of the environmental liabilities for the sites. As a result of the sale and transfer of liabilities, PSEG Power recorded a pre-tax gain in 2018 of $54 million. |
Variable Interest Entities (VIE
Variable Interest Entities (VIEs) | 12 Months Ended |
Dec. 31, 2020 | |
Variable Interest Entity [Line Items] | |
Variable Interest Entities (VIEs) [Text Block] | 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 paid 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 payment 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. |
Public Service Electric and Gas Company | |
Variable Interest Entity [Line Items] | |
Variable Interest Entities (VIEs) [Text Block] | 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 paid 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 payment 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. |
Property, Plant And Equipment A
Property, Plant And Equipment And Jointly-Owned Facilities | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Line Items] | |
Property Plant And Equipment And Jointly-Owned Facilities | Property, Plant and Equipment and Jointly-Owned Facilities Information related to Property, Plant and Equipment as of December 31, 2020 and 2019 is detailed below: PSE&G PSEG Power Other PSEG Millions 2020 Transmission and Distribution: Electric Transmission $ 14,075 $ — $ — $ 14,075 Electric Distribution 9,622 — — 9,622 Gas Distribution and Transmission 9,081 — — 9,081 Construction Work in Progress 1,783 — — 1,783 Other 659 — — 659 Total Transmission and Distribution 35,220 — — 35,220 Generation: Fossil Production — 6,581 — 6,581 Nuclear Production — 3,296 — 3,296 Nuclear Fuel in Service — 748 — 748 Other Production-Solar 658 911 — 1,569 Construction Work in Progress — 248 — 248 Total Generation 658 11,784 — 12,442 Other 422 88 397 907 Total $ 36,300 $ 11,872 $ 397 $ 48,569 PSE&G PSEG Power Other PSEG Millions 2019 Transmission and Distribution: Electric Transmission $ 12,908 $ — $ — $ 12,908 Electric Distribution 9,255 — — 9,255 Gas Distribution and Transmission 8,430 — — 8,430 Construction Work in Progress 1,607 — — 1,607 Other 639 — — 639 Total Transmission and Distribution 32,839 — — 32,839 Generation: Fossil Production — 6,570 — 6,570 Nuclear Production — 3,087 — 3,087 Nuclear Fuel in Service — 761 — 761 Other Production-Solar 663 911 — 1,574 Construction Work in Progress — 277 — 277 Total Generation 663 11,606 — 12,269 Other 398 93 345 836 Total $ 33,900 $ 11,699 $ 345 $ 45,944 PSE&G and PSEG Power have ownership interests in and are responsible for providing their respective shares of the necessary financing for the following jointly-owned facilities to which they are a party. All amounts reflect PSE&G’s or PSEG Power’s share of the jointly-owned projects and the corresponding direct expenses are included in the Consolidated Statements of Operations as Operating Expenses. As of December 31, 2020 2019 Ownership Accumulated Accumulated Interest Plant Depreciation Plant Depreciation Millions PSE&G: Transmission Facilities Various $ 161 $ 63 $ 161 $ 60 PSEG Power: Nuclear Generating: Peach Bottom 50 % $ 1,405 $ 455 $ 1,340 $ 435 Salem 57 % $ 1,321 $ 387 $ 1,256 $ 384 Nuclear Support Facilities Various $ 226 $ 97 $ 247 $ 107 Pumped Storage Facilities: Yards Creek (A) 50 % $ — $ — $ 55 $ 27 Merrill Creek Reservoir 14 % $ 1 $ — $ 1 $ — (A) In September 2020, PSEG Power completed the sale of its ownership interest in this generation facility. See Note 4. Early Plant Retirements/Asset Dispositions for additional information. PSEG Power holds undivided ownership interests in the jointly-owned facilities above. PSEG Power is entitled to shares of the generating capability and output of each unit equal to its respective ownership interests. PSEG Power also pays its ownership share of additional construction costs, fuel inventory purchases and operating expenses. PSEG Power’s share of expenses for the jointly-owned facilities is included in the appropriate expense category. Each owner is responsible for any financing with respect to its pro rata share of capital expenditures. PSEG Power co-owns Salem and Peach Bottom with Exelon Generation. PSEG Power is the operator of Salem and Exelon Generation is the operator of Peach Bottom. A committee appointed by the co-owners provides oversight. Proposed O&M budgets and requests for major capital expenditures are reviewed and approved as part of the normal PSEG Power governance process. PSEG Power is a minority owner in the Merrill Creek Reservoir and Environmental Preserve in Warren County, New Jersey. Merrill Creek Owners Group is the owner-operator of this facility. The operator submits separate capital and O&M budgets, subject to PSEG Power’s approval as part of the normal PSEG Power governance process. |
Public Service Electric and Gas Company | |
Property, Plant and Equipment [Line Items] | |
Property Plant And Equipment And Jointly-Owned Facilities | Property, Plant and Equipment and Jointly-Owned Facilities Information related to Property, Plant and Equipment as of December 31, 2020 and 2019 is detailed below: PSE&G PSEG Power Other PSEG Millions 2020 Transmission and Distribution: Electric Transmission $ 14,075 $ — $ — $ 14,075 Electric Distribution 9,622 — — 9,622 Gas Distribution and Transmission 9,081 — — 9,081 Construction Work in Progress 1,783 — — 1,783 Other 659 — — 659 Total Transmission and Distribution 35,220 — — 35,220 Generation: Fossil Production — 6,581 — 6,581 Nuclear Production — 3,296 — 3,296 Nuclear Fuel in Service — 748 — 748 Other Production-Solar 658 911 — 1,569 Construction Work in Progress — 248 — 248 Total Generation 658 11,784 — 12,442 Other 422 88 397 907 Total $ 36,300 $ 11,872 $ 397 $ 48,569 PSE&G PSEG Power Other PSEG Millions 2019 Transmission and Distribution: Electric Transmission $ 12,908 $ — $ — $ 12,908 Electric Distribution 9,255 — — 9,255 Gas Distribution and Transmission 8,430 — — 8,430 Construction Work in Progress 1,607 — — 1,607 Other 639 — — 639 Total Transmission and Distribution 32,839 — — 32,839 Generation: Fossil Production — 6,570 — 6,570 Nuclear Production — 3,087 — 3,087 Nuclear Fuel in Service — 761 — 761 Other Production-Solar 663 911 — 1,574 Construction Work in Progress — 277 — 277 Total Generation 663 11,606 — 12,269 Other 398 93 345 836 Total $ 33,900 $ 11,699 $ 345 $ 45,944 PSE&G and PSEG Power have ownership interests in and are responsible for providing their respective shares of the necessary financing for the following jointly-owned facilities to which they are a party. All amounts reflect PSE&G’s or PSEG Power’s share of the jointly-owned projects and the corresponding direct expenses are included in the Consolidated Statements of Operations as Operating Expenses. As of December 31, 2020 2019 Ownership Accumulated Accumulated Interest Plant Depreciation Plant Depreciation Millions PSE&G: Transmission Facilities Various $ 161 $ 63 $ 161 $ 60 PSEG Power: Nuclear Generating: Peach Bottom 50 % $ 1,405 $ 455 $ 1,340 $ 435 Salem 57 % $ 1,321 $ 387 $ 1,256 $ 384 Nuclear Support Facilities Various $ 226 $ 97 $ 247 $ 107 Pumped Storage Facilities: Yards Creek (A) 50 % $ — $ — $ 55 $ 27 Merrill Creek Reservoir 14 % $ 1 $ — $ 1 $ — (A) In September 2020, PSEG Power completed the sale of its ownership interest in this generation facility. See Note 4. Early Plant Retirements/Asset Dispositions for additional information. PSEG Power holds undivided ownership interests in the jointly-owned facilities above. PSEG Power is entitled to shares of the generating capability and output of each unit equal to its respective ownership interests. PSEG Power also pays its ownership share of additional construction costs, fuel inventory purchases and operating expenses. PSEG Power’s share of expenses for the jointly-owned facilities is included in the appropriate expense category. Each owner is responsible for any financing with respect to its pro rata share of capital expenditures. PSEG Power co-owns Salem and Peach Bottom with Exelon Generation. PSEG Power is the operator of Salem and Exelon Generation is the operator of Peach Bottom. A committee appointed by the co-owners provides oversight. Proposed O&M budgets and requests for major capital expenditures are reviewed and approved as part of the normal PSEG Power governance process. PSEG Power is a minority owner in the Merrill Creek Reservoir and Environmental Preserve in Warren County, New Jersey. Merrill Creek Owners Group is the owner-operator of this facility. The operator submits separate capital and O&M budgets, subject to PSEG Power’s approval as part of the normal PSEG Power governance process. |
PSEG Power LLC | |
Property, Plant and Equipment [Line Items] | |
Property Plant And Equipment And Jointly-Owned Facilities | Property, Plant and Equipment and Jointly-Owned Facilities Information related to Property, Plant and Equipment as of December 31, 2020 and 2019 is detailed below: PSE&G PSEG Power Other PSEG Millions 2020 Transmission and Distribution: Electric Transmission $ 14,075 $ — $ — $ 14,075 Electric Distribution 9,622 — — 9,622 Gas Distribution and Transmission 9,081 — — 9,081 Construction Work in Progress 1,783 — — 1,783 Other 659 — — 659 Total Transmission and Distribution 35,220 — — 35,220 Generation: Fossil Production — 6,581 — 6,581 Nuclear Production — 3,296 — 3,296 Nuclear Fuel in Service — 748 — 748 Other Production-Solar 658 911 — 1,569 Construction Work in Progress — 248 — 248 Total Generation 658 11,784 — 12,442 Other 422 88 397 907 Total $ 36,300 $ 11,872 $ 397 $ 48,569 PSE&G PSEG Power Other PSEG Millions 2019 Transmission and Distribution: Electric Transmission $ 12,908 $ — $ — $ 12,908 Electric Distribution 9,255 — — 9,255 Gas Distribution and Transmission 8,430 — — 8,430 Construction Work in Progress 1,607 — — 1,607 Other 639 — — 639 Total Transmission and Distribution 32,839 — — 32,839 Generation: Fossil Production — 6,570 — 6,570 Nuclear Production — 3,087 — 3,087 Nuclear Fuel in Service — 761 — 761 Other Production-Solar 663 911 — 1,574 Construction Work in Progress — 277 — 277 Total Generation 663 11,606 — 12,269 Other 398 93 345 836 Total $ 33,900 $ 11,699 $ 345 $ 45,944 PSE&G and PSEG Power have ownership interests in and are responsible for providing their respective shares of the necessary financing for the following jointly-owned facilities to which they are a party. All amounts reflect PSE&G’s or PSEG Power’s share of the jointly-owned projects and the corresponding direct expenses are included in the Consolidated Statements of Operations as Operating Expenses. As of December 31, 2020 2019 Ownership Accumulated Accumulated Interest Plant Depreciation Plant Depreciation Millions PSE&G: Transmission Facilities Various $ 161 $ 63 $ 161 $ 60 PSEG Power: Nuclear Generating: Peach Bottom 50 % $ 1,405 $ 455 $ 1,340 $ 435 Salem 57 % $ 1,321 $ 387 $ 1,256 $ 384 Nuclear Support Facilities Various $ 226 $ 97 $ 247 $ 107 Pumped Storage Facilities: Yards Creek (A) 50 % $ — $ — $ 55 $ 27 Merrill Creek Reservoir 14 % $ 1 $ — $ 1 $ — (A) In September 2020, PSEG Power completed the sale of its ownership interest in this generation facility. See Note 4. Early Plant Retirements/Asset Dispositions for additional information. PSEG Power holds undivided ownership interests in the jointly-owned facilities above. PSEG Power is entitled to shares of the generating capability and output of each unit equal to its respective ownership interests. PSEG Power also pays its ownership share of additional construction costs, fuel inventory purchases and operating expenses. PSEG Power’s share of expenses for the jointly-owned facilities is included in the appropriate expense category. Each owner is responsible for any financing with respect to its pro rata share of capital expenditures. PSEG Power co-owns Salem and Peach Bottom with Exelon Generation. PSEG Power is the operator of Salem and Exelon Generation is the operator of Peach Bottom. A committee appointed by the co-owners provides oversight. Proposed O&M budgets and requests for major capital expenditures are reviewed and approved as part of the normal PSEG Power governance process. PSEG Power is a minority owner in the Merrill Creek Reservoir and Environmental Preserve in Warren County, New Jersey. Merrill Creek Owners Group is the owner-operator of this facility. The operator submits separate capital and O&M budgets, subject to PSEG Power’s approval as part of the normal PSEG Power governance process. |
Regulatory Assets And Liabiliti
Regulatory Assets And Liabilities | 12 Months Ended |
Dec. 31, 2020 | |
Regulatory Assets And Liabilities [Line Items] | |
Regulatory Assets and Liabilities | Regulatory Assets and Liabilities PSE&G prepares its financial statements in accordance with GAAP for regulated utilities as described in Note 1. Organization, Basis of Presentation and Summary of Significant Accounting Policies. PSE&G has deferred certain costs based on rate orders issued by the BPU or FERC or based on PSE&G’s experience with prior rate proceedings. Most of PSE&G’s Regulatory Assets and Liabilities as of December 31, 2020 are supported by written orders, either explicitly or implicitly through the BPU’s treatment of various cost items. These costs will be recovered and amortized over various future periods. Regulatory Assets and other investments and costs incurred under our various infrastructure filings and clause mechanisms are subject to prudence reviews and can be disallowed in the future by regulatory authorities. To the extent that collection of any infrastructure or clause mechanism revenue, Regulatory Assets or payments of Regulatory Liabilities is no longer probable, the amounts would be charged or credited to income. PSE&G had the following Regulatory Assets and Liabilities: As of December 31, 2020 2019 Millions Regulatory Assets Current New Jersey Clean Energy Program $ 143 $ 143 Societal Benefits Charge (SBC) 82 30 Electric Energy Costs—Basic Generation Service (BGS) 60 57 2018 Distribution Base Rate Case Regulatory Assets (BRC) 56 56 Formula Rate True-up 23 52 Other 5 13 Total Current Regulatory Assets 369 351 Noncurrent Pension and OPEB Costs $ 1,489 $ 1,284 Deferred Income Tax Regulatory Assets 1,014 966 Manufactured Gas Plant (MGP) Remediation Costs 320 357 Electric Transmission and Gas Cost of Removal 189 216 Asset Retirement Obligation 184 172 Green Program Recovery Charges (GPRC) 139 118 Remediation Adjustment Charge (RAC) (Other SBC) 134 158 BRC 103 159 Deferred Storm Costs 99 12 COVID-19 Deferral 51 — Unamortized Loss on Reacquired Debt and Debt Expense 36 42 Gas Costs—BGSS 26 27 Other 88 166 Total Noncurrent Regulatory Assets 3,872 3,677 Total Regulatory Assets $ 4,241 $ 4,028 As of December 31, 2020 2019 Millions Regulatory Liabilities Current Deferred Income Tax Regulatory Liabilities $ 223 $ 193 Gas Costs—BGSS 20 — ZEC Liability 17 10 Tax Adjustment Credit (TAC) 5 12 Weather Normalization Charge (WNC) 2 15 Other 27 4 Total Current Regulatory Liabilities 294 234 Noncurrent Deferred Income Tax Regulatory Liabilities $ 2,670 $ 2,955 Electric Distribution Cost of Removal 37 47 Total Noncurrent Regulatory Liabilities 2,707 3,002 Total Regulatory Liabilities $ 3,001 $ 3,236 All Regulatory Assets and Liabilities are excluded from PSE&G’s rate base unless otherwise noted. The Regulatory Assets and Liabilities in the table above are defined as follows: • Asset Retirement Obligation: These costs represent the differences between rate-regulated cost of removal accounting and asset retirement accounting under GAAP. These costs will be recovered in future rates as assets are retired. • BRC: Represents deferred costs, primarily comprised of storm costs incurred in the cleanup of major storms from 2010 through 2018, which are being amortized over five years pursuant to the 2018 Distribution Base Rate Case Settlement. • COVID-19 Deferral: These amounts represent incremental costs related to COVID-19 as authorized for deferral in an order issued by the BPU to all New Jersey regulated utilities in July 2020. The BPU authorized such utilities to create a COVID-19-related Regulatory Asset by deferring on their books and records the prudently incurred incremental costs related to COVID-19 during the Regulatory Asset period, beginning on March 9, 2020 through September 30, 2021, or 60 days after the New Jersey governor determines that the Public Health Emergency is no longer in effect, or in the absence of such a determination, 60 days from the time the Public Health Emergency automatically terminates by law, whichever is later. Deferred costs are to be offset by any federal or state assistance that the utility may receive as a direct result of the COVID-19 pandemic. Utilities must file quarterly reports of the costs incurred and offsets. Each participating utility must file a petition documenting its prudently incurred incremental COVID-19 costs by December 31, 2021, or within 60 days of the close of the Regulatory Asset period as described above, whichever is later. Any potential rate recovery, including any prudency determinations and the appropriate period of recovery, will be addressed through that filing, or in the alternative, the utility may request that the BPU defer consideration of rate recovery for a future base rate case. • Deferred Income Tax Regulatory Assets: These amounts relate to deferred income taxes arising from utility operations that have not been included in customer rates relating to depreciation, ITCs and other flow-through items, including the flowback to customers of accumulated deferred income taxes related to tax repair deductions. As part of its base rate case settlement with the BPU and the establishment of the TAC mechanism in 2018, PSE&G agreed to a ten-year flowback to customers of its accumulated deferred income taxes from previously realized tax repair deductions which resulted in the recognition of a $581 million Regulatory Asset and Regulatory Liability as of September 30, 2018. In addition, PSE&G agreed to the current flowback of tax benefits from ongoing tax repair deductions as realized which results in the recording of a Regulatory Asset upon flowback. For the years ended December 31, 2020 and 2019, PSE&G had provided $31 million and $58 million, respectively, in current tax repair flowbacks to customers. The recovery and amortization of the tax repair-related Deferred Income Tax Regulatory Assets will be determined in PSE&G’s subsequent base rate cases. • Deferred Income Tax Regulatory Liabilities: These liabilities relate to amounts due to customers for excess deferred income taxes as a result of the reduction in the federal corporate income tax rate provided in the Tax Cuts and Jobs Act of 2017 (Tax Act), and accumulated deferred income taxes from previously realized distribution-related tax repair deductions. As part of its settlement with its regulators, PSE&G agreed to refund the excess deferred income taxes as follows: • Unprotected distribution-related excess deferred income taxes are being refunded to customers over five years through PSE&G’s TAC mechanism as approved in its 2018 distribution base rate proceeding. As of December 31, 2020, the balance remaining to be flowed back to customers was approximately $520 million with the remaining flowback period through 2023. • Protected distribution-related excess deferred income taxes are being refunded to customers over the remaining useful life of distribution property, plant and equipment through PSE&G’s TAC mechanism. As of December 31, 2020, the balance remaining to be flowed back to customers was approximately $933 million. • Previously realized distribution-related tax repair deductions are being refunded to customers over ten years through PSE&G’s TAC mechanism. As of December 31, 2020, the balance remaining to be flowed back to customers was approximately $500 million through 2028. • Protected transmission-related excess deferred income taxes are being refunded to customers over the remaining useful life of transmission property, plant and equipment through PSE&G’s transmission formula rate mechanism. As of December 31, 2020, the balance remaining to be flowed back to customers was approximately $940 million. • Unprotected transmission-related deferred income taxes were fully refunded to customers in 2019 and 2020. • Deferred Storm Costs: Incremental costs incurred in the restoration and related costs from major storms in 2019 and 2020 for which PSE&G will seek recovery in its next base rate proceeding. • Electric and Gas Cost of Removal: PSE&G accrues and collects in rates for the cost of removing, dismantling and disposing of its T&D assets upon retirement. The Regulatory Asset or Liability for non-legally required cost of removal represents the difference between amounts collected in rates and costs actually incurred. • Electric Energy Costs — BGS: These costs represent the over or under recovered amounts associated with BGS, as approved by the BPU. Pursuant to BPU requirements, PSE&G serves as the supplier of last resort for electric customers within its service territory that are not served by another supplier. Pricing for those services are set by the BPU as a pass-through, resulting in no margin for PSE&G’s operations. Over or under recovered balances with interest are returned or recovered through monthly filings. • Formula Rate True-Up: PSE&G’s transmission revenues are earned under a FERC-approved annual formula rate mechanism which 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. • Gas Costs — BGSS: These costs represent the over or under recovered amounts associated with BGSS, as approved by the BPU. Pursuant to BPU requirements, PSE&G serves as the supplier of last resort for gas customers within its service territory that are not served by another supplier. Pricing for those services are set by the BPU as a pass-through, resulting in no margin for PSE&G’s operations. Over or under collected balances are returned or recovered through an annual filing. Interest is accrued only on over recovered balances. • GPRC: This amount represents costs of the over or under collected balances associated with various renewable energy and energy efficiency programs. PSE&G files annually with the BPU for recovery of amounts that include a return on and of its investment over the lives of the underlying investments and capital assets which range from five to ten years. Interest is accrued monthly on any over or under recovered balances. Components of the GPRC include: Carbon Abatement, Energy Efficiency Economic Stimulus Program (EEE), EEE Extension Program, EEE Extension II Program, Solar Generation Investment Program (Solar 4 All ® ), Solar 4 All ® Extension, Solar 4 All ® Extension II, Solar Loan II Program, Solar Loan III Program, Energy Efficiency (EE) 2017 Program, Clean Energy Future–Energy Efficiency (CEF-EE), and the Transition Renewable Energy Certificate (TRECs) Program. • MGP Remediation Costs: Represents the low end of the range for the remaining environmental investigation and remediation program cleanup costs for MGPs that are probable of recovery in future rates. Once these costs are incurred, they are recovered through the RAC in the SBC over a seven year period with interest. • New Jersey Clean Energy Program: The BPU approved future funding requirements for Energy Efficiency and Renewable Energy Programs. The BPU funding requirements are recovered through the SBC. • Pension and OPEB Costs: Pursuant to the adoption of accounting guidance for employers’ defined benefit pension and OPEB plans, PSE&G recorded the unrecognized costs for defined benefit pension and other OPEB plans on the balance sheet as a Regulatory Asset. These costs represent net actuarial gains or losses and prior service costs which have not been expensed. These costs are amortized and recovered in future rates. • RAC (Other SBC): Costs incurred to clean up MGPs which are recovered over seven years with interest through an annual filing. • SBC: The SBC, as authorized by the BPU and the New Jersey Electric Discount and Energy Competition Act, includes costs related to PSE&G’s electric and gas business as follows: (1) the Universal Service Fund; (2) Energy Efficiency and Renewable Energy Programs; (3) Electric bad debt expense; and (4) the RAC for incurred MGP remediation expenditures. Over or under recovered balances with interest are to be returned or recovered through an annual filing. • TAC: This represents the over or under collected balances associated with the return of excess accumulated deferred income taxes and the flowback of previously realized and current tax repair deductions under a mechanism approved by the BPU in PSE&G’s 2018 Base Rate Case Settlement. Over or under collected balances are returned or recovered through an annual filing. PSE&G includes a return component on the flowback of the excess accumulated deferred income taxes and the previously realized tax repairs. Interest is accrued monthly on any over or under recovered balances. • Unamortized Loss on Reacquired Debt and Debt Expense: Represents losses on reacquired long-term debt and expenses associated with issuances of new debt, which are recovered through rates over the remaining life of the debt. • WNC: This represents the over or under recovery of gas margin which is filed annually with the BPU. The WNC requires PSE&G to calculate, at the end of each October-to-May period, the level by which margin revenues differed from what would have resulted if normal weather had occurred. Over recoveries are returned to customers in the next winter season while under recoveries (subject to an earnings cap) are recovered from customers in the next winter season. • ZEC Liability: This represents amounts to be returned to customers for overcollections, including interest associated with the ZEC program whereby PSE&G purchases ZECs from eligible nuclear plants. Significant 2019 and 2020 regulatory orders received and currently pending rate filings with the BPU by PSE&G are as follows: • BGSS— In September 2020, the BPU provisionally approved PSE&G’s request to maintain the current BGSS rate of 32 cents. This rate is subject to final approval. • CEF-Energy Cloud (EC) or Advanced Metering Infrastructure (AMI) Initiative— In January 2021, the BPU approved PSE&G’s CEF-EC filing to spend approximately $700 million in order to provide its 2.3 million electric customers with smart meters over the next four years. All of the capital and operating costs of the program will be recovered in PSE&G’s next base rate case, expected in the second half of 2024. From the start of the program until the commencement of new base rates, the return on and of the capital portion of the program will be included for recovery in those rates, as well as operating costs and stranded costs associated with the retirement of the existing meters. • CEF-Electric Vehicles (EV)— In January 2021, the BPU approved a program for PSE&G to provide investments of $166 million for EV charging. All of the capital and operating costs of the program will be recovered in PSE&G’s next base rate case. From the start of the program until the commencement of new base rates, the return on and of the capital portion of the program will be included for recovery in those rates, as well as operating costs . • CEF-EE, a New Component of the GPRC— In September 2020, the BPU approved PSE&G’s CEF-EE program, authorizing PSE&G to spend $1 billion in program costs. These costs will be recovered through the GPRC, with returns aligned with PSE&G’s most recent base rate case and recovered over a ten-year amortization period. The approval also included a Conservation Incentive Program, a mechanism that will provide for recovery of lost electric and gas variable margin revenues. This mechanism is effective in June 2021 for electric and October 2021 for gas. PSE&G will suspend its gas WNC when the gas deferral period begins. • COVID-19 Deferral— In July 2020, the BPU authorized regulated utilities in the State of New Jersey to create a COVID-19-related Regulatory Asset by deferring on their books and records the prudently incurred incremental costs related to COVID-19 as described above. In October 2020, the BPU broadened the scope of the docket to include all pandemic issues in a generic proceeding that will include submission of public comments and consideration of, among other things, the timing and scope of current and planned clean energy programs; other utility filings and mechanisms; utility financial strength; customer concerns; regulatory compliance and priorities; and ensuring the continued provision of safe and adequate service at just and reasonable rates, while recognizing the ramifications from the COVID-19 pandemic. PSE&G has made three quarterly filings as required by the BPU and recorded a Regulatory Asset of approximately $51 million in 2020 for net incremental costs, including $29 million for incremental bad debt expense associated with customer accounts receivable, which PSE&G believes are recoverable under the BPU order. • Energy Strong Program II (ES II) Recovery Filing —In December 2020, PSE&G filed its first ES II electric only cost recovery petition seeking BPU approval to recover in electric rates the return on and of ES II electric investments placed in service through January 31, 2021. In February 2021, the petition was updated to reflect actual investments and costs, and requests an annual revenue increase of $13 million with rates effective no earlier than May 1, 2021. This matter is pending. • Gas System Modernization Program II (GSMP II)— In July and November 2020, the BPU approved PSE&G’s GSMP II cost recovery petition requesting approximately $18 million and $20 million, respectively in gas revenues on an annual basis, which included GSMP II investments in service as of February 29, 2020 and August 31,2020, respectively. The increases were effective July 16, 2020 and December 1, 2020. In December 2020, PSE&G filed its next bi-annual GSMP II cost recovery petition seeking BPU approval to recover in gas base rates an estimated annual revenue increase of approximately $26 million effective June 1, 2021. This increase represents the return on and of GSMP II investments placed in service through February 28, 2021. This request will be updated in March 2021 for actual costs. • GPRC— In January 2021, the BPU provisionally approved PSE&G’s 2020 GPRC cost recovery petition requesting recovery of approximately $67 million and $20 million in electric and gas revenues, respectively, on an annual basis with rates effective February 1, 2021. • RAC— In December 2020, PSE&G filed its RAC 28 petition with the BPU seeking recovery of $35 million of net MGP remediation expenditures incurred from August 1, 2019 through July 31, 2020. This matter is pending. In September 2020, the BPU approved PSE&G’s RAC 27 filing requesting recovery of approximately $53 million in net MGP remediation expenditures incurred from August 1, 2018 through July 31, 2019. • SBC —In November 2020, PSE&G filed a petition to increase electric rates by approximately $76 million and decrease its gas rates by approximately $18 million, on an annual basis, in order to recover electric and gas costs incurred or expected to be incurred through February 28, 2022 under its EE and Renewable Energy and Social Programs. The increase to electric rates includes the impact of increased bad debt expense as a result of the negative economic impact of the ongoing coronavirus pandemic and moratorium on collections. This matter is pending. • TAC— In October 2020, PSE&G made its annual 2020 TAC filing. The TAC allows for the flowback to customers of excess accumulated deferred income taxes resulting from the reduction of the federal income tax rates provided in the Tax Act as well as the accumulated deferred income taxes from previously realized tax repair deductions and tax benefits from future tax repair deductions as realized. The 2020 TAC filing, updated in January 2021, requests BPU approval to reduce electric revenues by approximately $26 million and increase gas revenues by $48 million on an annual basis starting January 1, 2021, including an update to the additional unprotected amounts to be flowed back as a result of the Private Letter Ruling (PLR) discussed below. This matter is pending. In July 2020, the BPU gave final approval to PSE&G’s 2019 TAC filing that had been approved on a provisional basis in January 2020, with additional credits included in the final ruling. The final approval resulted in a reduction to electric and gas revenues of $25 million and $29 million, respectively, on an annual basis, effective July 16, 2020. PSE&G received a PLR from the Internal Revenue Service (IRS) in April 2020 that concluded that certain excess deferred taxes previously classified as protected should be classified as unprotected. Unprotected excess deferred income taxes are not subject to the tax normalization rules allowing them to be refunded to customers sooner as agreed to with the BPU. As part of a procedural discovery to obtain the BPU’s final approval, PSE&G proposed that it change its current provisional TAC rates to increase the credit and start flowing back these unprotected amounts starting in July 2020 through December 31, 2024, which the BPU approved. This resulted in a total additional credit to electric and gas customers of $50 million and $46 million, respectively. • Transition Incentive Program, a New Component of the GPRC— 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 incentive program and created a new incentive mechanism known as the Transition Renewable Energy Certificate (TRECs) Program. 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. In August 2020, the BPU approved PSE&G’s request for increased rates of approximately $23 million annually for recovery of its expected share of TREC costs. These costs will be recovered as a new component of PSE&G’s existing electric GPRC, which is updated on an annual basis. • Transmission Formula Rates— In October 2020, PSE&G filed its 2020 Annual Transmission Formula Rate Update with FERC which will result in $119 million in increased annual transmission revenue effective January 1, 2021, subject to true-up. In June 2020, PSE&G filed its 2019 true-up adjustment pertaining to its transmission formula rates in effect for 2019. This filing resulted in an additional annual revenue requirement of $24 million more than the 2019 originally filed revenue. In April 2020, the IRS issued a PLR to PSE&G concluding that certain excess deferred taxes previously classified as protected should be classified as unprotected. Unprotected excess deferred income taxes are not subject to the normalization rules allowing them to be refunded to customers sooner as agreed to with FERC and the BPU. In July 2020, FERC approved PSE&G’s request to allow the entire amount of these unprotected excess deferred income taxes be returned to customers in the 2019 true-up filing. As a result of the FERC approval, PSE&G recorded a revenue reduction of approximately $38 million in the third quarter of 2020, fully offset by a reduction in Income Tax Expense. The refund will be provided to transmission ratepayers as a reduction to the 2021 transmission rates. • WNC— In November 2020, the BPU approved PSE&G’s updated WNC resetting the WNC rate to zero to eliminate any recovery of undercollected revenues from the warmer-than-normal 2019-2020 Winter Period. The updated filing eliminated the undercollection due to an earnings test limitation which was updated with actuals for the annual period ended September 2020 as stipulated in the filing. Previously, the BPU had approved a provisional rate effective October 1, 2020 for the collection of $10 million from customers over the 2020-2021 Winter Period. Approximately $2 million in October and November 2020 collections from the provisional rate will be refunded to customers with interest in the next annual filing. • ZEC Program— In December 2020, the BPU approved PSE&G’s petition to refund a total of $6.2 million, including interest, for overcollections resulting from the ZEC program for the energy years ended May 31, 2020 and 2019. In 2020, PSE&G purchased approximately $154 million in ZECs, including interest, from the eligible nuclear plants selected by the BPU with the final payment made in August 2020. As a result of the collections and required ZEC payments, there was approximately $6 million in overcollected revenues, including interest, for the energy year ended May 31, 2020. This was combined with a $0.2 million overcollection from the prior period for a total of $6.2 million, with the credit to rates effective January 1, 2021. |
Public Service Electric and Gas Company | |
Regulatory Assets And Liabilities [Line Items] | |
Regulatory Assets and Liabilities | Regulatory Assets and Liabilities PSE&G prepares its financial statements in accordance with GAAP for regulated utilities as described in Note 1. Organization, Basis of Presentation and Summary of Significant Accounting Policies. PSE&G has deferred certain costs based on rate orders issued by the BPU or FERC or based on PSE&G’s experience with prior rate proceedings. Most of PSE&G’s Regulatory Assets and Liabilities as of December 31, 2020 are supported by written orders, either explicitly or implicitly through the BPU’s treatment of various cost items. These costs will be recovered and amortized over various future periods. Regulatory Assets and other investments and costs incurred under our various infrastructure filings and clause mechanisms are subject to prudence reviews and can be disallowed in the future by regulatory authorities. To the extent that collection of any infrastructure or clause mechanism revenue, Regulatory Assets or payments of Regulatory Liabilities is no longer probable, the amounts would be charged or credited to income. PSE&G had the following Regulatory Assets and Liabilities: As of December 31, 2020 2019 Millions Regulatory Assets Current New Jersey Clean Energy Program $ 143 $ 143 Societal Benefits Charge (SBC) 82 30 Electric Energy Costs—Basic Generation Service (BGS) 60 57 2018 Distribution Base Rate Case Regulatory Assets (BRC) 56 56 Formula Rate True-up 23 52 Other 5 13 Total Current Regulatory Assets 369 351 Noncurrent Pension and OPEB Costs $ 1,489 $ 1,284 Deferred Income Tax Regulatory Assets 1,014 966 Manufactured Gas Plant (MGP) Remediation Costs 320 357 Electric Transmission and Gas Cost of Removal 189 216 Asset Retirement Obligation 184 172 Green Program Recovery Charges (GPRC) 139 118 Remediation Adjustment Charge (RAC) (Other SBC) 134 158 BRC 103 159 Deferred Storm Costs 99 12 COVID-19 Deferral 51 — Unamortized Loss on Reacquired Debt and Debt Expense 36 42 Gas Costs—BGSS 26 27 Other 88 166 Total Noncurrent Regulatory Assets 3,872 3,677 Total Regulatory Assets $ 4,241 $ 4,028 As of December 31, 2020 2019 Millions Regulatory Liabilities Current Deferred Income Tax Regulatory Liabilities $ 223 $ 193 Gas Costs—BGSS 20 — ZEC Liability 17 10 Tax Adjustment Credit (TAC) 5 12 Weather Normalization Charge (WNC) 2 15 Other 27 4 Total Current Regulatory Liabilities 294 234 Noncurrent Deferred Income Tax Regulatory Liabilities $ 2,670 $ 2,955 Electric Distribution Cost of Removal 37 47 Total Noncurrent Regulatory Liabilities 2,707 3,002 Total Regulatory Liabilities $ 3,001 $ 3,236 All Regulatory Assets and Liabilities are excluded from PSE&G’s rate base unless otherwise noted. The Regulatory Assets and Liabilities in the table above are defined as follows: • Asset Retirement Obligation: These costs represent the differences between rate-regulated cost of removal accounting and asset retirement accounting under GAAP. These costs will be recovered in future rates as assets are retired. • BRC: Represents deferred costs, primarily comprised of storm costs incurred in the cleanup of major storms from 2010 through 2018, which are being amortized over five years pursuant to the 2018 Distribution Base Rate Case Settlement. • COVID-19 Deferral: These amounts represent incremental costs related to COVID-19 as authorized for deferral in an order issued by the BPU to all New Jersey regulated utilities in July 2020. The BPU authorized such utilities to create a COVID-19-related Regulatory Asset by deferring on their books and records the prudently incurred incremental costs related to COVID-19 during the Regulatory Asset period, beginning on March 9, 2020 through September 30, 2021, or 60 days after the New Jersey governor determines that the Public Health Emergency is no longer in effect, or in the absence of such a determination, 60 days from the time the Public Health Emergency automatically terminates by law, whichever is later. Deferred costs are to be offset by any federal or state assistance that the utility may receive as a direct result of the COVID-19 pandemic. Utilities must file quarterly reports of the costs incurred and offsets. Each participating utility must file a petition documenting its prudently incurred incremental COVID-19 costs by December 31, 2021, or within 60 days of the close of the Regulatory Asset period as described above, whichever is later. Any potential rate recovery, including any prudency determinations and the appropriate period of recovery, will be addressed through that filing, or in the alternative, the utility may request that the BPU defer consideration of rate recovery for a future base rate case. • Deferred Income Tax Regulatory Assets: These amounts relate to deferred income taxes arising from utility operations that have not been included in customer rates relating to depreciation, ITCs and other flow-through items, including the flowback to customers of accumulated deferred income taxes related to tax repair deductions. As part of its base rate case settlement with the BPU and the establishment of the TAC mechanism in 2018, PSE&G agreed to a ten-year flowback to customers of its accumulated deferred income taxes from previously realized tax repair deductions which resulted in the recognition of a $581 million Regulatory Asset and Regulatory Liability as of September 30, 2018. In addition, PSE&G agreed to the current flowback of tax benefits from ongoing tax repair deductions as realized which results in the recording of a Regulatory Asset upon flowback. For the years ended December 31, 2020 and 2019, PSE&G had provided $31 million and $58 million, respectively, in current tax repair flowbacks to customers. The recovery and amortization of the tax repair-related Deferred Income Tax Regulatory Assets will be determined in PSE&G’s subsequent base rate cases. • Deferred Income Tax Regulatory Liabilities: These liabilities relate to amounts due to customers for excess deferred income taxes as a result of the reduction in the federal corporate income tax rate provided in the Tax Cuts and Jobs Act of 2017 (Tax Act), and accumulated deferred income taxes from previously realized distribution-related tax repair deductions. As part of its settlement with its regulators, PSE&G agreed to refund the excess deferred income taxes as follows: • Unprotected distribution-related excess deferred income taxes are being refunded to customers over five years through PSE&G’s TAC mechanism as approved in its 2018 distribution base rate proceeding. As of December 31, 2020, the balance remaining to be flowed back to customers was approximately $520 million with the remaining flowback period through 2023. • Protected distribution-related excess deferred income taxes are being refunded to customers over the remaining useful life of distribution property, plant and equipment through PSE&G’s TAC mechanism. As of December 31, 2020, the balance remaining to be flowed back to customers was approximately $933 million. • Previously realized distribution-related tax repair deductions are being refunded to customers over ten years through PSE&G’s TAC mechanism. As of December 31, 2020, the balance remaining to be flowed back to customers was approximately $500 million through 2028. • Protected transmission-related excess deferred income taxes are being refunded to customers over the remaining useful life of transmission property, plant and equipment through PSE&G’s transmission formula rate mechanism. As of December 31, 2020, the balance remaining to be flowed back to customers was approximately $940 million. • Unprotected transmission-related deferred income taxes were fully refunded to customers in 2019 and 2020. • Deferred Storm Costs: Incremental costs incurred in the restoration and related costs from major storms in 2019 and 2020 for which PSE&G will seek recovery in its next base rate proceeding. • Electric and Gas Cost of Removal: PSE&G accrues and collects in rates for the cost of removing, dismantling and disposing of its T&D assets upon retirement. The Regulatory Asset or Liability for non-legally required cost of removal represents the difference between amounts collected in rates and costs actually incurred. • Electric Energy Costs — BGS: These costs represent the over or under recovered amounts associated with BGS, as approved by the BPU. Pursuant to BPU requirements, PSE&G serves as the supplier of last resort for electric customers within its service territory that are not served by another supplier. Pricing for those services are set by the BPU as a pass-through, resulting in no margin for PSE&G’s operations. Over or under recovered balances with interest are returned or recovered through monthly filings. • Formula Rate True-Up: PSE&G’s transmission revenues are earned under a FERC-approved annual formula rate mechanism which 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. • Gas Costs — BGSS: These costs represent the over or under recovered amounts associated with BGSS, as approved by the BPU. Pursuant to BPU requirements, PSE&G serves as the supplier of last resort for gas customers within its service territory that are not served by another supplier. Pricing for those services are set by the BPU as a pass-through, resulting in no margin for PSE&G’s operations. Over or under collected balances are returned or recovered through an annual filing. Interest is accrued only on over recovered balances. • GPRC: This amount represents costs of the over or under collected balances associated with various renewable energy and energy efficiency programs. PSE&G files annually with the BPU for recovery of amounts that include a return on and of its investment over the lives of the underlying investments and capital assets which range from five to ten years. Interest is accrued monthly on any over or under recovered balances. Components of the GPRC include: Carbon Abatement, Energy Efficiency Economic Stimulus Program (EEE), EEE Extension Program, EEE Extension II Program, Solar Generation Investment Program (Solar 4 All ® ), Solar 4 All ® Extension, Solar 4 All ® Extension II, Solar Loan II Program, Solar Loan III Program, Energy Efficiency (EE) 2017 Program, Clean Energy Future–Energy Efficiency (CEF-EE), and the Transition Renewable Energy Certificate (TRECs) Program. • MGP Remediation Costs: Represents the low end of the range for the remaining environmental investigation and remediation program cleanup costs for MGPs that are probable of recovery in future rates. Once these costs are incurred, they are recovered through the RAC in the SBC over a seven year period with interest. • New Jersey Clean Energy Program: The BPU approved future funding requirements for Energy Efficiency and Renewable Energy Programs. The BPU funding requirements are recovered through the SBC. • Pension and OPEB Costs: Pursuant to the adoption of accounting guidance for employers’ defined benefit pension and OPEB plans, PSE&G recorded the unrecognized costs for defined benefit pension and other OPEB plans on the balance sheet as a Regulatory Asset. These costs represent net actuarial gains or losses and prior service costs which have not been expensed. These costs are amortized and recovered in future rates. • RAC (Other SBC): Costs incurred to clean up MGPs which are recovered over seven years with interest through an annual filing. • SBC: The SBC, as authorized by the BPU and the New Jersey Electric Discount and Energy Competition Act, includes costs related to PSE&G’s electric and gas business as follows: (1) the Universal Service Fund; (2) Energy Efficiency and Renewable Energy Programs; (3) Electric bad debt expense; and (4) the RAC for incurred MGP remediation expenditures. Over or under recovered balances with interest are to be returned or recovered through an annual filing. • TAC: This represents the over or under collected balances associated with the return of excess accumulated deferred income taxes and the flowback of previously realized and current tax repair deductions under a mechanism approved by the BPU in PSE&G’s 2018 Base Rate Case Settlement. Over or under collected balances are returned or recovered through an annual filing. PSE&G includes a return component on the flowback of the excess accumulated deferred income taxes and the previously realized tax repairs. Interest is accrued monthly on any over or under recovered balances. • Unamortized Loss on Reacquired Debt and Debt Expense: Represents losses on reacquired long-term debt and expenses associated with issuances of new debt, which are recovered through rates over the remaining life of the debt. • WNC: This represents the over or under recovery of gas margin which is filed annually with the BPU. The WNC requires PSE&G to calculate, at the end of each October-to-May period, the level by which margin revenues differed from what would have resulted if normal weather had occurred. Over recoveries are returned to customers in the next winter season while under recoveries (subject to an earnings cap) are recovered from customers in the next winter season. • ZEC Liability: This represents amounts to be returned to customers for overcollections, including interest associated with the ZEC program whereby PSE&G purchases ZECs from eligible nuclear plants. Significant 2019 and 2020 regulatory orders received and currently pending rate filings with the BPU by PSE&G are as follows: • BGSS— In September 2020, the BPU provisionally approved PSE&G’s request to maintain the current BGSS rate of 32 cents. This rate is subject to final approval. • CEF-Energy Cloud (EC) or Advanced Metering Infrastructure (AMI) Initiative— In January 2021, the BPU approved PSE&G’s CEF-EC filing to spend approximately $700 million in order to provide its 2.3 million electric customers with smart meters over the next four years. All of the capital and operating costs of the program will be recovered in PSE&G’s next base rate case, expected in the second half of 2024. From the start of the program until the commencement of new base rates, the return on and of the capital portion of the program will be included for recovery in those rates, as well as operating costs and stranded costs associated with the retirement of the existing meters. • CEF-Electric Vehicles (EV)— In January 2021, the BPU approved a program for PSE&G to provide investments of $166 million for EV charging. All of the capital and operating costs of the program will be recovered in PSE&G’s next base rate case. From the start of the program until the commencement of new base rates, the return on and of the capital portion of the program will be included for recovery in those rates, as well as operating costs . • CEF-EE, a New Component of the GPRC— In September 2020, the BPU approved PSE&G’s CEF-EE program, authorizing PSE&G to spend $1 billion in program costs. These costs will be recovered through the GPRC, with returns aligned with PSE&G’s most recent base rate case and recovered over a ten-year amortization period. The approval also included a Conservation Incentive Program, a mechanism that will provide for recovery of lost electric and gas variable margin revenues. This mechanism is effective in June 2021 for electric and October 2021 for gas. PSE&G will suspend its gas WNC when the gas deferral period begins. • COVID-19 Deferral— In July 2020, the BPU authorized regulated utilities in the State of New Jersey to create a COVID-19-related Regulatory Asset by deferring on their books and records the prudently incurred incremental costs related to COVID-19 as described above. In October 2020, the BPU broadened the scope of the docket to include all pandemic issues in a generic proceeding that will include submission of public comments and consideration of, among other things, the timing and scope of current and planned clean energy programs; other utility filings and mechanisms; utility financial strength; customer concerns; regulatory compliance and priorities; and ensuring the continued provision of safe and adequate service at just and reasonable rates, while recognizing the ramifications from the COVID-19 pandemic. PSE&G has made three quarterly filings as required by the BPU and recorded a Regulatory Asset of approximately $51 million in 2020 for net incremental costs, including $29 million for incremental bad debt expense associated with customer accounts receivable, which PSE&G believes are recoverable under the BPU order. • Energy Strong Program II (ES II) Recovery Filing —In December 2020, PSE&G filed its first ES II electric only cost recovery petition seeking BPU approval to recover in electric rates the return on and of ES II electric investments placed in service through January 31, 2021. In February 2021, the petition was updated to reflect actual investments and costs, and requests an annual revenue increase of $13 million with rates effective no earlier than May 1, 2021. This matter is pending. • Gas System Modernization Program II (GSMP II)— In July and November 2020, the BPU approved PSE&G’s GSMP II cost recovery petition requesting approximately $18 million and $20 million, respectively in gas revenues on an annual basis, which included GSMP II investments in service as of February 29, 2020 and August 31,2020, respectively. The increases were effective July 16, 2020 and December 1, 2020. In December 2020, PSE&G filed its next bi-annual GSMP II cost recovery petition seeking BPU approval to recover in gas base rates an estimated annual revenue increase of approximately $26 million effective June 1, 2021. This increase represents the return on and of GSMP II investments placed in service through February 28, 2021. This request will be updated in March 2021 for actual costs. • GPRC— In January 2021, the BPU provisionally approved PSE&G’s 2020 GPRC cost recovery petition requesting recovery of approximately $67 million and $20 million in electric and gas revenues, respectively, on an annual basis with rates effective February 1, 2021. • RAC— In December 2020, PSE&G filed its RAC 28 petition with the BPU seeking recovery of $35 million of net MGP remediation expenditures incurred from August 1, 2019 through July 31, 2020. This matter is pending. In September 2020, the BPU approved PSE&G’s RAC 27 filing requesting recovery of approximately $53 million in net MGP remediation expenditures incurred from August 1, 2018 through July 31, 2019. • SBC —In November 2020, PSE&G filed a petition to increase electric rates by approximately $76 million and decrease its gas rates by approximately $18 million, on an annual basis, in order to recover electric and gas costs incurred or expected to be incurred through February 28, 2022 under its EE and Renewable Energy and Social Programs. The increase to electric rates includes the impact of increased bad debt expense as a result of the negative economic impact of the ongoing coronavirus pandemic and moratorium on collections. This matter is pending. • TAC— In October 2020, PSE&G made its annual 2020 TAC filing. The TAC allows for the flowback to customers of excess accumulated deferred income taxes resulting from the reduction of the federal income tax rates provided in the Tax Act as well as the accumulated deferred income taxes from previously realized tax repair deductions and tax benefits from future tax repair deductions as realized. The 2020 TAC filing, updated in January 2021, requests BPU approval to reduce electric revenues by approximately $26 million and increase gas revenues by $48 million on an annual basis starting January 1, 2021, including an update to the additional unprotected amounts to be flowed back as a result of the Private Letter Ruling (PLR) discussed below. This matter is pending. In July 2020, the BPU gave final approval to PSE&G’s 2019 TAC filing that had been approved on a provisional basis in January 2020, with additional credits included in the final ruling. The final approval resulted in a reduction to electric and gas revenues of $25 million and $29 million, respectively, on an annual basis, effective July 16, 2020. PSE&G received a PLR from the Internal Revenue Service (IRS) in April 2020 that concluded that certain excess deferred taxes previously classified as protected should be classified as unprotected. Unprotected excess deferred income taxes are not subject to the tax normalization rules allowing them to be refunded to customers sooner as agreed to with the BPU. As part of a procedural discovery to obtain the BPU’s final approval, PSE&G proposed that it change its current provisional TAC rates to increase the credit and start flowing back these unprotected amounts starting in July 2020 through December 31, 2024, which the BPU approved. This resulted in a total additional credit to electric and gas customers of $50 million and $46 million, respectively. • Transition Incentive Program, a New Component of the GPRC— 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 incentive program and created a new incentive mechanism known as the Transition Renewable Energy Certificate (TRECs) Program. 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. In August 2020, the BPU approved PSE&G’s request for increased rates of approximately $23 million annually for recovery of its expected share of TREC costs. These costs will be recovered as a new component of PSE&G’s existing electric GPRC, which is updated on an annual basis. • Transmission Formula Rates— In October 2020, PSE&G filed its 2020 Annual Transmission Formula Rate Update with FERC which will result in $119 million in increased annual transmission revenue effective January 1, 2021, subject to true-up. In June 2020, PSE&G filed its 2019 true-up adjustment pertaining to its transmission formula rates in effect for 2019. This filing resulted in an additional annual revenue requirement of $24 million more than the 2019 originally filed revenue. In April 2020, the IRS issued a PLR to PSE&G concluding that certain excess deferred taxes previously classified as protected should be classified as unprotected. Unprotected excess deferred income taxes are not subject to the normalization rules allowing them to be refunded to customers sooner as agreed to with FERC and the BPU. In July 2020, FERC approved PSE&G’s request to allow the entire amount of these unprotected excess deferred income taxes be returned to customers in the 2019 true-up filing. As a result of the FERC approval, PSE&G recorded a revenue reduction of approximately $38 million in the third quarter of 2020, fully offset by a reduction in Income Tax Expense. The refund will be provided to transmission ratepayers as a reduction to the 2021 transmission rates. • WNC— In November 2020, the BPU approved PSE&G’s updated WNC resetting the WNC rate to zero to eliminate any recovery of undercollected revenues from the warmer-than-normal 2019-2020 Winter Period. The updated filing eliminated the undercollection due to an earnings test limitation which was updated with actuals for the annual period ended September 2020 as stipulated in the filing. Previously, the BPU had approved a provisional rate effective October 1, 2020 for the collection of $10 million from customers over the 2020-2021 Winter Period. Approximately $2 million in October and November 2020 collections from the provisional rate will be refunded to customers with interest in the next annual filing. • ZEC Program— In December 2020, the BPU approved PSE&G’s petition to refund a total of $6.2 million, including interest, for overcollections resulting from the ZEC program for the energy years ended May 31, 2020 and 2019. In 2020, PSE&G purchased approximately $154 million in ZECs, including interest, from the eligible nuclear plants selected by the BPU with the final payment made in August 2020. As a result of the collections and required ZEC payments, there was approximately $6 million in overcollected revenues, including interest, for the energy year ended May 31, 2020. This was combined with a $0.2 million overcollection from the prior period for a total of $6.2 million, with the credit to rates effective January 1, 2021. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2020 | |
Leases | Leases As of December 31, 2020, PSEG and its subsidiaries were both a lessee and a lessor in operating leases. Lessee PSE&G PSE&G has operating leases for office space for customer service centers, rooftops and land for its Solar 4 All® facilities, equipment, vehicles and land for certain electric substations. These leases have remaining lease terms through 2040, some of which include options to extend the leases for up to five five-year terms. Some leases have fixed rent payments that have escalations based on certain indices, such as the CPI. Certain leases contain variable payments. PSEG Power PSEG Power has operating leases for buildings, land leases for its solar generating facilities, merchant transmission and equipment. These leases have remaining terms through 2055, some of which include options to extend the leases for up to seven five-year terms and certain other leases which include options to extend the leases for 15 to 20 year terms. Some leases have fixed rent payments that have escalations based on certain indices, such as the CPI. Certain leases contain variable payments. Other Services has operating leases for real estate and office equipment. These leases have remaining terms through 2030. Services’ lease for its headquarters, which ends in 2030, includes options to extend for two five-year terms. Operating Lease Costs The following amounts relate to total operating lease costs, including both amounts recognized in the Consolidated Statements of Operations during the years ended December 31, 2020 and 2019 and any amounts capitalized as part of the cost of another asset, and the cash flows arising from lease transactions. PSE&G PSEG Power Other Total Millions Operating Lease Costs Year Ended December 31, 2020 Long-term Lease Costs $ 26 $ 14 $ 14 $ 54 Short-term Lease Costs 38 7 — 45 Variable Lease Costs 2 20 9 31 Total Operating Lease Costs $ 66 $ 41 $ 23 $ 130 Year Ended December 31, 2020 Cash Paid for Amounts Included in the Measurement of Operating Lease Liabilities $ 17 $ 14 $ 14 $ 45 Weighted Average Remaining Lease Term in Years 12 14 10 11 Weighted Average Discount Rate 3.5 % 4.5 % 4.2 % 4.0 % PSE&G PSEG Power Other Total Millions Operating Lease Costs Year Ended December 31, 2019 Long-term Lease Costs $ 24 $ 13 $ 15 $ 52 Short-term Lease Costs 14 10 — 24 Variable Lease Costs 2 10 10 22 Total Operating Lease Costs $ 40 $ 33 $ 25 $ 98 Year Ended December 31, 2019 Cash Paid for Amounts Included in the Measurement of Operating Lease Liabilities $ 16 $ 11 $ 15 $ 42 Weighted Average Remaining Lease Term in Years 13 14 10 12 Weighted Average Discount Rate 3.6 % 4.4 % 4.2 % 4.1 % Operating lease liabilities as of December 31, 2020 had the following maturities on an undiscounted basis: PSE&G PSEG Power Other Total Millions 2021 $ 16 $ 14 $ 15 $ 45 2022 13 14 15 42 2023 11 8 15 34 2024 10 3 15 28 2025 8 3 15 26 Thereafter 69 47 75 191 Total Minimum Lease Payments $ 127 $ 89 $ 150 $ 366 The following is a reconciliation of the undiscounted cash flows to the discounted Operating Lease Liabilities recognized on the Consolidated Balance Sheets: As of December 31, 2020 PSE&G PSEG Power Other Total Millions Undiscounted Cash Flows $ 127 $ 89 $ 150 $ 366 Reconciling Amount due to Discount Rate (26) (27) (27) (80) Total Discounted Operating Lease Liabilities $ 101 $ 62 $ 123 $ 286 As of December 31, 2019 PSE&G PSEG Power Other Total Millions Undiscounted Cash Flows $ 126 $ 100 $ 168 $ 394 Reconciling Amount due to Discount Rate (27) (28) (33) (88) Total Discounted Operating Lease Liabilities $ 99 $ 72 $ 135 $ 306 As of December 31, 2020, the current portions of Operating Lease Liabilities included in Other Current Liabilities were $34 million, $13 million and $11 million for PSEG, PSE&G and PSEG Power, respectively. As of December 31, 2019, the current portions of Operating Lease Liabilities included in Other Current Liabilities were $33 million, $12 million and $10 million for PSEG, PSE&G and PSEG Power, respectively. Lessor 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. As of December 31, 2020, PSEG Power’s solar generating plants subject to these leases had a total carrying value of $376 million. Other Energy Holdings is the lessor in leveraged leases. See Note 9. Long-Term Investments and Note 10. Financing Receivables. Energy Holdings is the lessor in two operating leases for domestic energy generation facilities with remaining terms through 2036, one of which has an optional renewal period. As of December 31, 2020, Energy Holdings’ property subject to these leases had a total carrying value of $83 million. 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 years ended December 31, 2020 and 2019: PSEG Power Energy Holdings Total Millions Operating Lease Income Year Ended December 31, 2020 Fixed Lease Income $ — $ 15 $ 15 Variable Lease Income 26 — 26 Total Operating Lease Income $ 26 $ 15 $ 41 Year Ended December 31, 2019 Fixed Lease Income $ — $ 22 $ 22 Variable Lease Income 23 — 23 Total Operating Lease Income $ 23 $ 22 $ 45 Energy Holdings’ operating leases had the following minimum future fixed lease receipts as of December 31, 2020: Millions 2021 $ 14 2022 14 2023 14 2024 14 2025 14 Thereafter 227 Total Minimum Future Lease Receipts $ 297 |
Leases | Leases As of December 31, 2020, PSEG and its subsidiaries were both a lessee and a lessor in operating leases. Lessee PSE&G PSE&G has operating leases for office space for customer service centers, rooftops and land for its Solar 4 All® facilities, equipment, vehicles and land for certain electric substations. These leases have remaining lease terms through 2040, some of which include options to extend the leases for up to five five-year terms. Some leases have fixed rent payments that have escalations based on certain indices, such as the CPI. Certain leases contain variable payments. PSEG Power PSEG Power has operating leases for buildings, land leases for its solar generating facilities, merchant transmission and equipment. These leases have remaining terms through 2055, some of which include options to extend the leases for up to seven five-year terms and certain other leases which include options to extend the leases for 15 to 20 year terms. Some leases have fixed rent payments that have escalations based on certain indices, such as the CPI. Certain leases contain variable payments. Other Services has operating leases for real estate and office equipment. These leases have remaining terms through 2030. Services’ lease for its headquarters, which ends in 2030, includes options to extend for two five-year terms. Operating Lease Costs The following amounts relate to total operating lease costs, including both amounts recognized in the Consolidated Statements of Operations during the years ended December 31, 2020 and 2019 and any amounts capitalized as part of the cost of another asset, and the cash flows arising from lease transactions. PSE&G PSEG Power Other Total Millions Operating Lease Costs Year Ended December 31, 2020 Long-term Lease Costs $ 26 $ 14 $ 14 $ 54 Short-term Lease Costs 38 7 — 45 Variable Lease Costs 2 20 9 31 Total Operating Lease Costs $ 66 $ 41 $ 23 $ 130 Year Ended December 31, 2020 Cash Paid for Amounts Included in the Measurement of Operating Lease Liabilities $ 17 $ 14 $ 14 $ 45 Weighted Average Remaining Lease Term in Years 12 14 10 11 Weighted Average Discount Rate 3.5 % 4.5 % 4.2 % 4.0 % PSE&G PSEG Power Other Total Millions Operating Lease Costs Year Ended December 31, 2019 Long-term Lease Costs $ 24 $ 13 $ 15 $ 52 Short-term Lease Costs 14 10 — 24 Variable Lease Costs 2 10 10 22 Total Operating Lease Costs $ 40 $ 33 $ 25 $ 98 Year Ended December 31, 2019 Cash Paid for Amounts Included in the Measurement of Operating Lease Liabilities $ 16 $ 11 $ 15 $ 42 Weighted Average Remaining Lease Term in Years 13 14 10 12 Weighted Average Discount Rate 3.6 % 4.4 % 4.2 % 4.1 % Operating lease liabilities as of December 31, 2020 had the following maturities on an undiscounted basis: PSE&G PSEG Power Other Total Millions 2021 $ 16 $ 14 $ 15 $ 45 2022 13 14 15 42 2023 11 8 15 34 2024 10 3 15 28 2025 8 3 15 26 Thereafter 69 47 75 191 Total Minimum Lease Payments $ 127 $ 89 $ 150 $ 366 The following is a reconciliation of the undiscounted cash flows to the discounted Operating Lease Liabilities recognized on the Consolidated Balance Sheets: As of December 31, 2020 PSE&G PSEG Power Other Total Millions Undiscounted Cash Flows $ 127 $ 89 $ 150 $ 366 Reconciling Amount due to Discount Rate (26) (27) (27) (80) Total Discounted Operating Lease Liabilities $ 101 $ 62 $ 123 $ 286 As of December 31, 2019 PSE&G PSEG Power Other Total Millions Undiscounted Cash Flows $ 126 $ 100 $ 168 $ 394 Reconciling Amount due to Discount Rate (27) (28) (33) (88) Total Discounted Operating Lease Liabilities $ 99 $ 72 $ 135 $ 306 As of December 31, 2020, the current portions of Operating Lease Liabilities included in Other Current Liabilities were $34 million, $13 million and $11 million for PSEG, PSE&G and PSEG Power, respectively. As of December 31, 2019, the current portions of Operating Lease Liabilities included in Other Current Liabilities were $33 million, $12 million and $10 million for PSEG, PSE&G and PSEG Power, respectively. Lessor 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. As of December 31, 2020, PSEG Power’s solar generating plants subject to these leases had a total carrying value of $376 million. Other Energy Holdings is the lessor in leveraged leases. See Note 9. Long-Term Investments and Note 10. Financing Receivables. Energy Holdings is the lessor in two operating leases for domestic energy generation facilities with remaining terms through 2036, one of which has an optional renewal period. As of December 31, 2020, Energy Holdings’ property subject to these leases had a total carrying value of $83 million. 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 years ended December 31, 2020 and 2019: PSEG Power Energy Holdings Total Millions Operating Lease Income Year Ended December 31, 2020 Fixed Lease Income $ — $ 15 $ 15 Variable Lease Income 26 — 26 Total Operating Lease Income $ 26 $ 15 $ 41 Year Ended December 31, 2019 Fixed Lease Income $ — $ 22 $ 22 Variable Lease Income 23 — 23 Total Operating Lease Income $ 23 $ 22 $ 45 Energy Holdings’ operating leases had the following minimum future fixed lease receipts as of December 31, 2020: Millions 2021 $ 14 2022 14 2023 14 2024 14 2025 14 Thereafter 227 Total Minimum Future Lease Receipts $ 297 |
Public Service Electric and Gas Company | |
Leases | Leases As of December 31, 2020, PSEG and its subsidiaries were both a lessee and a lessor in operating leases. Lessee PSE&G PSE&G has operating leases for office space for customer service centers, rooftops and land for its Solar 4 All® facilities, equipment, vehicles and land for certain electric substations. These leases have remaining lease terms through 2040, some of which include options to extend the leases for up to five five-year terms. Some leases have fixed rent payments that have escalations based on certain indices, such as the CPI. Certain leases contain variable payments. PSEG Power PSEG Power has operating leases for buildings, land leases for its solar generating facilities, merchant transmission and equipment. These leases have remaining terms through 2055, some of which include options to extend the leases for up to seven five-year terms and certain other leases which include options to extend the leases for 15 to 20 year terms. Some leases have fixed rent payments that have escalations based on certain indices, such as the CPI. Certain leases contain variable payments. Other Services has operating leases for real estate and office equipment. These leases have remaining terms through 2030. Services’ lease for its headquarters, which ends in 2030, includes options to extend for two five-year terms. Operating Lease Costs The following amounts relate to total operating lease costs, including both amounts recognized in the Consolidated Statements of Operations during the years ended December 31, 2020 and 2019 and any amounts capitalized as part of the cost of another asset, and the cash flows arising from lease transactions. PSE&G PSEG Power Other Total Millions Operating Lease Costs Year Ended December 31, 2020 Long-term Lease Costs $ 26 $ 14 $ 14 $ 54 Short-term Lease Costs 38 7 — 45 Variable Lease Costs 2 20 9 31 Total Operating Lease Costs $ 66 $ 41 $ 23 $ 130 Year Ended December 31, 2020 Cash Paid for Amounts Included in the Measurement of Operating Lease Liabilities $ 17 $ 14 $ 14 $ 45 Weighted Average Remaining Lease Term in Years 12 14 10 11 Weighted Average Discount Rate 3.5 % 4.5 % 4.2 % 4.0 % PSE&G PSEG Power Other Total Millions Operating Lease Costs Year Ended December 31, 2019 Long-term Lease Costs $ 24 $ 13 $ 15 $ 52 Short-term Lease Costs 14 10 — 24 Variable Lease Costs 2 10 10 22 Total Operating Lease Costs $ 40 $ 33 $ 25 $ 98 Year Ended December 31, 2019 Cash Paid for Amounts Included in the Measurement of Operating Lease Liabilities $ 16 $ 11 $ 15 $ 42 Weighted Average Remaining Lease Term in Years 13 14 10 12 Weighted Average Discount Rate 3.6 % 4.4 % 4.2 % 4.1 % Operating lease liabilities as of December 31, 2020 had the following maturities on an undiscounted basis: PSE&G PSEG Power Other Total Millions 2021 $ 16 $ 14 $ 15 $ 45 2022 13 14 15 42 2023 11 8 15 34 2024 10 3 15 28 2025 8 3 15 26 Thereafter 69 47 75 191 Total Minimum Lease Payments $ 127 $ 89 $ 150 $ 366 The following is a reconciliation of the undiscounted cash flows to the discounted Operating Lease Liabilities recognized on the Consolidated Balance Sheets: As of December 31, 2020 PSE&G PSEG Power Other Total Millions Undiscounted Cash Flows $ 127 $ 89 $ 150 $ 366 Reconciling Amount due to Discount Rate (26) (27) (27) (80) Total Discounted Operating Lease Liabilities $ 101 $ 62 $ 123 $ 286 As of December 31, 2019 PSE&G PSEG Power Other Total Millions Undiscounted Cash Flows $ 126 $ 100 $ 168 $ 394 Reconciling Amount due to Discount Rate (27) (28) (33) (88) Total Discounted Operating Lease Liabilities $ 99 $ 72 $ 135 $ 306 As of December 31, 2020, the current portions of Operating Lease Liabilities included in Other Current Liabilities were $34 million, $13 million and $11 million for PSEG, PSE&G and PSEG Power, respectively. As of December 31, 2019, the current portions of Operating Lease Liabilities included in Other Current Liabilities were $33 million, $12 million and $10 million for PSEG, PSE&G and PSEG Power, respectively. Lessor 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. As of December 31, 2020, PSEG Power’s solar generating plants subject to these leases had a total carrying value of $376 million. Other Energy Holdings is the lessor in leveraged leases. See Note 9. Long-Term Investments and Note 10. Financing Receivables. Energy Holdings is the lessor in two operating leases for domestic energy generation facilities with remaining terms through 2036, one of which has an optional renewal period. As of December 31, 2020, Energy Holdings’ property subject to these leases had a total carrying value of $83 million. 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 years ended December 31, 2020 and 2019: PSEG Power Energy Holdings Total Millions Operating Lease Income Year Ended December 31, 2020 Fixed Lease Income $ — $ 15 $ 15 Variable Lease Income 26 — 26 Total Operating Lease Income $ 26 $ 15 $ 41 Year Ended December 31, 2019 Fixed Lease Income $ — $ 22 $ 22 Variable Lease Income 23 — 23 Total Operating Lease Income $ 23 $ 22 $ 45 Energy Holdings’ operating leases had the following minimum future fixed lease receipts as of December 31, 2020: Millions 2021 $ 14 2022 14 2023 14 2024 14 2025 14 Thereafter 227 Total Minimum Future Lease Receipts $ 297 |
Leases | Leases As of December 31, 2020, PSEG and its subsidiaries were both a lessee and a lessor in operating leases. Lessee PSE&G PSE&G has operating leases for office space for customer service centers, rooftops and land for its Solar 4 All® facilities, equipment, vehicles and land for certain electric substations. These leases have remaining lease terms through 2040, some of which include options to extend the leases for up to five five-year terms. Some leases have fixed rent payments that have escalations based on certain indices, such as the CPI. Certain leases contain variable payments. PSEG Power PSEG Power has operating leases for buildings, land leases for its solar generating facilities, merchant transmission and equipment. These leases have remaining terms through 2055, some of which include options to extend the leases for up to seven five-year terms and certain other leases which include options to extend the leases for 15 to 20 year terms. Some leases have fixed rent payments that have escalations based on certain indices, such as the CPI. Certain leases contain variable payments. Other Services has operating leases for real estate and office equipment. These leases have remaining terms through 2030. Services’ lease for its headquarters, which ends in 2030, includes options to extend for two five-year terms. Operating Lease Costs The following amounts relate to total operating lease costs, including both amounts recognized in the Consolidated Statements of Operations during the years ended December 31, 2020 and 2019 and any amounts capitalized as part of the cost of another asset, and the cash flows arising from lease transactions. PSE&G PSEG Power Other Total Millions Operating Lease Costs Year Ended December 31, 2020 Long-term Lease Costs $ 26 $ 14 $ 14 $ 54 Short-term Lease Costs 38 7 — 45 Variable Lease Costs 2 20 9 31 Total Operating Lease Costs $ 66 $ 41 $ 23 $ 130 Year Ended December 31, 2020 Cash Paid for Amounts Included in the Measurement of Operating Lease Liabilities $ 17 $ 14 $ 14 $ 45 Weighted Average Remaining Lease Term in Years 12 14 10 11 Weighted Average Discount Rate 3.5 % 4.5 % 4.2 % 4.0 % PSE&G PSEG Power Other Total Millions Operating Lease Costs Year Ended December 31, 2019 Long-term Lease Costs $ 24 $ 13 $ 15 $ 52 Short-term Lease Costs 14 10 — 24 Variable Lease Costs 2 10 10 22 Total Operating Lease Costs $ 40 $ 33 $ 25 $ 98 Year Ended December 31, 2019 Cash Paid for Amounts Included in the Measurement of Operating Lease Liabilities $ 16 $ 11 $ 15 $ 42 Weighted Average Remaining Lease Term in Years 13 14 10 12 Weighted Average Discount Rate 3.6 % 4.4 % 4.2 % 4.1 % Operating lease liabilities as of December 31, 2020 had the following maturities on an undiscounted basis: PSE&G PSEG Power Other Total Millions 2021 $ 16 $ 14 $ 15 $ 45 2022 13 14 15 42 2023 11 8 15 34 2024 10 3 15 28 2025 8 3 15 26 Thereafter 69 47 75 191 Total Minimum Lease Payments $ 127 $ 89 $ 150 $ 366 The following is a reconciliation of the undiscounted cash flows to the discounted Operating Lease Liabilities recognized on the Consolidated Balance Sheets: As of December 31, 2020 PSE&G PSEG Power Other Total Millions Undiscounted Cash Flows $ 127 $ 89 $ 150 $ 366 Reconciling Amount due to Discount Rate (26) (27) (27) (80) Total Discounted Operating Lease Liabilities $ 101 $ 62 $ 123 $ 286 As of December 31, 2019 PSE&G PSEG Power Other Total Millions Undiscounted Cash Flows $ 126 $ 100 $ 168 $ 394 Reconciling Amount due to Discount Rate (27) (28) (33) (88) Total Discounted Operating Lease Liabilities $ 99 $ 72 $ 135 $ 306 As of December 31, 2020, the current portions of Operating Lease Liabilities included in Other Current Liabilities were $34 million, $13 million and $11 million for PSEG, PSE&G and PSEG Power, respectively. As of December 31, 2019, the current portions of Operating Lease Liabilities included in Other Current Liabilities were $33 million, $12 million and $10 million for PSEG, PSE&G and PSEG Power, respectively. Lessor 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. As of December 31, 2020, PSEG Power’s solar generating plants subject to these leases had a total carrying value of $376 million. Other Energy Holdings is the lessor in leveraged leases. See Note 9. Long-Term Investments and Note 10. Financing Receivables. Energy Holdings is the lessor in two operating leases for domestic energy generation facilities with remaining terms through 2036, one of which has an optional renewal period. As of December 31, 2020, Energy Holdings’ property subject to these leases had a total carrying value of $83 million. 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 years ended December 31, 2020 and 2019: PSEG Power Energy Holdings Total Millions Operating Lease Income Year Ended December 31, 2020 Fixed Lease Income $ — $ 15 $ 15 Variable Lease Income 26 — 26 Total Operating Lease Income $ 26 $ 15 $ 41 Year Ended December 31, 2019 Fixed Lease Income $ — $ 22 $ 22 Variable Lease Income 23 — 23 Total Operating Lease Income $ 23 $ 22 $ 45 Energy Holdings’ operating leases had the following minimum future fixed lease receipts as of December 31, 2020: Millions 2021 $ 14 2022 14 2023 14 2024 14 2025 14 Thereafter 227 Total Minimum Future Lease Receipts $ 297 |
PSEG Power LLC | |
Leases | Leases As of December 31, 2020, PSEG and its subsidiaries were both a lessee and a lessor in operating leases. Lessee PSE&G PSE&G has operating leases for office space for customer service centers, rooftops and land for its Solar 4 All® facilities, equipment, vehicles and land for certain electric substations. These leases have remaining lease terms through 2040, some of which include options to extend the leases for up to five five-year terms. Some leases have fixed rent payments that have escalations based on certain indices, such as the CPI. Certain leases contain variable payments. PSEG Power PSEG Power has operating leases for buildings, land leases for its solar generating facilities, merchant transmission and equipment. These leases have remaining terms through 2055, some of which include options to extend the leases for up to seven five-year terms and certain other leases which include options to extend the leases for 15 to 20 year terms. Some leases have fixed rent payments that have escalations based on certain indices, such as the CPI. Certain leases contain variable payments. Other Services has operating leases for real estate and office equipment. These leases have remaining terms through 2030. Services’ lease for its headquarters, which ends in 2030, includes options to extend for two five-year terms. Operating Lease Costs The following amounts relate to total operating lease costs, including both amounts recognized in the Consolidated Statements of Operations during the years ended December 31, 2020 and 2019 and any amounts capitalized as part of the cost of another asset, and the cash flows arising from lease transactions. PSE&G PSEG Power Other Total Millions Operating Lease Costs Year Ended December 31, 2020 Long-term Lease Costs $ 26 $ 14 $ 14 $ 54 Short-term Lease Costs 38 7 — 45 Variable Lease Costs 2 20 9 31 Total Operating Lease Costs $ 66 $ 41 $ 23 $ 130 Year Ended December 31, 2020 Cash Paid for Amounts Included in the Measurement of Operating Lease Liabilities $ 17 $ 14 $ 14 $ 45 Weighted Average Remaining Lease Term in Years 12 14 10 11 Weighted Average Discount Rate 3.5 % 4.5 % 4.2 % 4.0 % PSE&G PSEG Power Other Total Millions Operating Lease Costs Year Ended December 31, 2019 Long-term Lease Costs $ 24 $ 13 $ 15 $ 52 Short-term Lease Costs 14 10 — 24 Variable Lease Costs 2 10 10 22 Total Operating Lease Costs $ 40 $ 33 $ 25 $ 98 Year Ended December 31, 2019 Cash Paid for Amounts Included in the Measurement of Operating Lease Liabilities $ 16 $ 11 $ 15 $ 42 Weighted Average Remaining Lease Term in Years 13 14 10 12 Weighted Average Discount Rate 3.6 % 4.4 % 4.2 % 4.1 % Operating lease liabilities as of December 31, 2020 had the following maturities on an undiscounted basis: PSE&G PSEG Power Other Total Millions 2021 $ 16 $ 14 $ 15 $ 45 2022 13 14 15 42 2023 11 8 15 34 2024 10 3 15 28 2025 8 3 15 26 Thereafter 69 47 75 191 Total Minimum Lease Payments $ 127 $ 89 $ 150 $ 366 The following is a reconciliation of the undiscounted cash flows to the discounted Operating Lease Liabilities recognized on the Consolidated Balance Sheets: As of December 31, 2020 PSE&G PSEG Power Other Total Millions Undiscounted Cash Flows $ 127 $ 89 $ 150 $ 366 Reconciling Amount due to Discount Rate (26) (27) (27) (80) Total Discounted Operating Lease Liabilities $ 101 $ 62 $ 123 $ 286 As of December 31, 2019 PSE&G PSEG Power Other Total Millions Undiscounted Cash Flows $ 126 $ 100 $ 168 $ 394 Reconciling Amount due to Discount Rate (27) (28) (33) (88) Total Discounted Operating Lease Liabilities $ 99 $ 72 $ 135 $ 306 As of December 31, 2020, the current portions of Operating Lease Liabilities included in Other Current Liabilities were $34 million, $13 million and $11 million for PSEG, PSE&G and PSEG Power, respectively. As of December 31, 2019, the current portions of Operating Lease Liabilities included in Other Current Liabilities were $33 million, $12 million and $10 million for PSEG, PSE&G and PSEG Power, respectively. Lessor 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. As of December 31, 2020, PSEG Power’s solar generating plants subject to these leases had a total carrying value of $376 million. Other Energy Holdings is the lessor in leveraged leases. See Note 9. Long-Term Investments and Note 10. Financing Receivables. Energy Holdings is the lessor in two operating leases for domestic energy generation facilities with remaining terms through 2036, one of which has an optional renewal period. As of December 31, 2020, Energy Holdings’ property subject to these leases had a total carrying value of $83 million. 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 years ended December 31, 2020 and 2019: PSEG Power Energy Holdings Total Millions Operating Lease Income Year Ended December 31, 2020 Fixed Lease Income $ — $ 15 $ 15 Variable Lease Income 26 — 26 Total Operating Lease Income $ 26 $ 15 $ 41 Year Ended December 31, 2019 Fixed Lease Income $ — $ 22 $ 22 Variable Lease Income 23 — 23 Total Operating Lease Income $ 23 $ 22 $ 45 Energy Holdings’ operating leases had the following minimum future fixed lease receipts as of December 31, 2020: Millions 2021 $ 14 2022 14 2023 14 2024 14 2025 14 Thereafter 227 Total Minimum Future Lease Receipts $ 297 |
Leases | Leases As of December 31, 2020, PSEG and its subsidiaries were both a lessee and a lessor in operating leases. Lessee PSE&G PSE&G has operating leases for office space for customer service centers, rooftops and land for its Solar 4 All® facilities, equipment, vehicles and land for certain electric substations. These leases have remaining lease terms through 2040, some of which include options to extend the leases for up to five five-year terms. Some leases have fixed rent payments that have escalations based on certain indices, such as the CPI. Certain leases contain variable payments. PSEG Power PSEG Power has operating leases for buildings, land leases for its solar generating facilities, merchant transmission and equipment. These leases have remaining terms through 2055, some of which include options to extend the leases for up to seven five-year terms and certain other leases which include options to extend the leases for 15 to 20 year terms. Some leases have fixed rent payments that have escalations based on certain indices, such as the CPI. Certain leases contain variable payments. Other Services has operating leases for real estate and office equipment. These leases have remaining terms through 2030. Services’ lease for its headquarters, which ends in 2030, includes options to extend for two five-year terms. Operating Lease Costs The following amounts relate to total operating lease costs, including both amounts recognized in the Consolidated Statements of Operations during the years ended December 31, 2020 and 2019 and any amounts capitalized as part of the cost of another asset, and the cash flows arising from lease transactions. PSE&G PSEG Power Other Total Millions Operating Lease Costs Year Ended December 31, 2020 Long-term Lease Costs $ 26 $ 14 $ 14 $ 54 Short-term Lease Costs 38 7 — 45 Variable Lease Costs 2 20 9 31 Total Operating Lease Costs $ 66 $ 41 $ 23 $ 130 Year Ended December 31, 2020 Cash Paid for Amounts Included in the Measurement of Operating Lease Liabilities $ 17 $ 14 $ 14 $ 45 Weighted Average Remaining Lease Term in Years 12 14 10 11 Weighted Average Discount Rate 3.5 % 4.5 % 4.2 % 4.0 % PSE&G PSEG Power Other Total Millions Operating Lease Costs Year Ended December 31, 2019 Long-term Lease Costs $ 24 $ 13 $ 15 $ 52 Short-term Lease Costs 14 10 — 24 Variable Lease Costs 2 10 10 22 Total Operating Lease Costs $ 40 $ 33 $ 25 $ 98 Year Ended December 31, 2019 Cash Paid for Amounts Included in the Measurement of Operating Lease Liabilities $ 16 $ 11 $ 15 $ 42 Weighted Average Remaining Lease Term in Years 13 14 10 12 Weighted Average Discount Rate 3.6 % 4.4 % 4.2 % 4.1 % Operating lease liabilities as of December 31, 2020 had the following maturities on an undiscounted basis: PSE&G PSEG Power Other Total Millions 2021 $ 16 $ 14 $ 15 $ 45 2022 13 14 15 42 2023 11 8 15 34 2024 10 3 15 28 2025 8 3 15 26 Thereafter 69 47 75 191 Total Minimum Lease Payments $ 127 $ 89 $ 150 $ 366 The following is a reconciliation of the undiscounted cash flows to the discounted Operating Lease Liabilities recognized on the Consolidated Balance Sheets: As of December 31, 2020 PSE&G PSEG Power Other Total Millions Undiscounted Cash Flows $ 127 $ 89 $ 150 $ 366 Reconciling Amount due to Discount Rate (26) (27) (27) (80) Total Discounted Operating Lease Liabilities $ 101 $ 62 $ 123 $ 286 As of December 31, 2019 PSE&G PSEG Power Other Total Millions Undiscounted Cash Flows $ 126 $ 100 $ 168 $ 394 Reconciling Amount due to Discount Rate (27) (28) (33) (88) Total Discounted Operating Lease Liabilities $ 99 $ 72 $ 135 $ 306 As of December 31, 2020, the current portions of Operating Lease Liabilities included in Other Current Liabilities were $34 million, $13 million and $11 million for PSEG, PSE&G and PSEG Power, respectively. As of December 31, 2019, the current portions of Operating Lease Liabilities included in Other Current Liabilities were $33 million, $12 million and $10 million for PSEG, PSE&G and PSEG Power, respectively. Lessor 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. As of December 31, 2020, PSEG Power’s solar generating plants subject to these leases had a total carrying value of $376 million. Other Energy Holdings is the lessor in leveraged leases. See Note 9. Long-Term Investments and Note 10. Financing Receivables. Energy Holdings is the lessor in two operating leases for domestic energy generation facilities with remaining terms through 2036, one of which has an optional renewal period. As of December 31, 2020, Energy Holdings’ property subject to these leases had a total carrying value of $83 million. 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 years ended December 31, 2020 and 2019: PSEG Power Energy Holdings Total Millions Operating Lease Income Year Ended December 31, 2020 Fixed Lease Income $ — $ 15 $ 15 Variable Lease Income 26 — 26 Total Operating Lease Income $ 26 $ 15 $ 41 Year Ended December 31, 2019 Fixed Lease Income $ — $ 22 $ 22 Variable Lease Income 23 — 23 Total Operating Lease Income $ 23 $ 22 $ 45 Energy Holdings’ operating leases had the following minimum future fixed lease receipts as of December 31, 2020: Millions 2021 $ 14 2022 14 2023 14 2024 14 2025 14 Thereafter 227 Total Minimum Future Lease Receipts $ 297 |
Long-Term Investments
Long-Term Investments | 12 Months Ended |
Dec. 31, 2020 | |
Long-Term Investments [Line Items] | |
Long-Term Investments [Text Block] | Long-Term Investments Long-Term Investments as of December 31, 2020 and 2019 included the following: As of December 31, 2020 2019 Millions PSE&G Life Insurance and Supplemental Benefits $ 100 $ 111 Solar Loans 122 137 PSEG Power Equity Method Investments (A) 64 66 Energy Holdings Lease Investments 250 497 Equity Method Investments — 1 Total Long-Term Investments $ 536 $ 812 (A) During the three years ended December 31, 2020, 2019 and 2018, dividends from these investments were $15 million, $15 million and $16 million, respectively. Leases Energy Holdings, through several of its indirect subsidiaries, has investments in 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 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 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 Consolidated Balance Sheets. In September 2020, wholly owned subsidiaries of PSEG Energy Holdings L.L.C. (the Sellers) completed the sale of their ownership interests in the Powerton and Joliet generation facilities and related assets, including the assumption by the purchaser of related liabilities. The loss, net of taxes, resulting from the transaction was immaterial. In December 2020, the leveraged lease relating to our interest in the Shawville facilities was modified and extended. Accordingly, the Shawville leveraged lease was reclassified as an operating lease and the underlying assets were recorded in Property, Plant and Equipment. See Note 8. Leases. In the second quarter of 2020, Energy Holdings completed its annual review of estimated residual values embedded in domestic energy leveraged leases and determined no impairments were necessary. During the second quarter of 2019, the outcome of Energy Holdings’ annual review indicated that the updated residual value estimate of the coal-fired Powerton lease was lower than the recorded residual value and the decline was deemed to be other than temporary as a result of expected future adverse market conditions. As a result, a pre-tax write-down of $58 million was reflected in Operating Revenues in 2019, calculated by comparing the gross investment in the leases before and after the revised residual estimates. The following table shows Energy Holdings’ gross and net lease investment as of December 31, 2020 and 2019. As of December 31, 2020 2019 Millions Lease Receivables (net of Non-Recourse Debt) $ 299 $ 498 Estimated Residual Value of Leased Assets 55 202 Total Investment in Rental Receivables 354 700 Unearned and Deferred Income (104) (203) Gross Investments in Leases 250 497 Deferred Tax Liabilities (64) (328) Net Investments in Leases $ 186 $ 169 The pre-tax income (loss) and income tax effects related to investments in leases, excluding gains and losses on sales and the impacts of the Tax Act, were as follows: Years Ended December 31, 2020 2019 2018 Millions Pre-Tax Income (Loss) from Leases $ 18 $ (39) $ 17 Income Tax Expense (Benefit) on Income (Loss) from Leases $ 2 $ (22) $ 6 Equity Method Investment PSEG Power had a 50% ownership interest in Kalaeloa, a combined-cycle generation facility in Hawaii of $64 million and $66 million as of December 31, 2020 and 2019, respectively. |
Public Service Electric and Gas Company | |
Long-Term Investments [Line Items] | |
Long-Term Investments [Text Block] | Long-Term Investments Long-Term Investments as of December 31, 2020 and 2019 included the following: As of December 31, 2020 2019 Millions PSE&G Life Insurance and Supplemental Benefits $ 100 $ 111 Solar Loans 122 137 PSEG Power Equity Method Investments (A) 64 66 Energy Holdings Lease Investments 250 497 Equity Method Investments — 1 Total Long-Term Investments $ 536 $ 812 (A) During the three years ended December 31, 2020, 2019 and 2018, dividends from these investments were $15 million, $15 million and $16 million, respectively. Leases Energy Holdings, through several of its indirect subsidiaries, has investments in 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 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 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 Consolidated Balance Sheets. In September 2020, wholly owned subsidiaries of PSEG Energy Holdings L.L.C. (the Sellers) completed the sale of their ownership interests in the Powerton and Joliet generation facilities and related assets, including the assumption by the purchaser of related liabilities. The loss, net of taxes, resulting from the transaction was immaterial. In December 2020, the leveraged lease relating to our interest in the Shawville facilities was modified and extended. Accordingly, the Shawville leveraged lease was reclassified as an operating lease and the underlying assets were recorded in Property, Plant and Equipment. See Note 8. Leases. In the second quarter of 2020, Energy Holdings completed its annual review of estimated residual values embedded in domestic energy leveraged leases and determined no impairments were necessary. During the second quarter of 2019, the outcome of Energy Holdings’ annual review indicated that the updated residual value estimate of the coal-fired Powerton lease was lower than the recorded residual value and the decline was deemed to be other than temporary as a result of expected future adverse market conditions. As a result, a pre-tax write-down of $58 million was reflected in Operating Revenues in 2019, calculated by comparing the gross investment in the leases before and after the revised residual estimates. The following table shows Energy Holdings’ gross and net lease investment as of December 31, 2020 and 2019. As of December 31, 2020 2019 Millions Lease Receivables (net of Non-Recourse Debt) $ 299 $ 498 Estimated Residual Value of Leased Assets 55 202 Total Investment in Rental Receivables 354 700 Unearned and Deferred Income (104) (203) Gross Investments in Leases 250 497 Deferred Tax Liabilities (64) (328) Net Investments in Leases $ 186 $ 169 The pre-tax income (loss) and income tax effects related to investments in leases, excluding gains and losses on sales and the impacts of the Tax Act, were as follows: Years Ended December 31, 2020 2019 2018 Millions Pre-Tax Income (Loss) from Leases $ 18 $ (39) $ 17 Income Tax Expense (Benefit) on Income (Loss) from Leases $ 2 $ (22) $ 6 Equity Method Investment PSEG Power had a 50% ownership interest in Kalaeloa, a combined-cycle generation facility in Hawaii of $64 million and $66 million as of December 31, 2020 and 2019, respectively. |
PSEG Power LLC | |
Long-Term Investments [Line Items] | |
Long-Term Investments [Text Block] | Long-Term Investments Long-Term Investments as of December 31, 2020 and 2019 included the following: As of December 31, 2020 2019 Millions PSE&G Life Insurance and Supplemental Benefits $ 100 $ 111 Solar Loans 122 137 PSEG Power Equity Method Investments (A) 64 66 Energy Holdings Lease Investments 250 497 Equity Method Investments — 1 Total Long-Term Investments $ 536 $ 812 (A) During the three years ended December 31, 2020, 2019 and 2018, dividends from these investments were $15 million, $15 million and $16 million, respectively. Leases Energy Holdings, through several of its indirect subsidiaries, has investments in 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 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 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 Consolidated Balance Sheets. In September 2020, wholly owned subsidiaries of PSEG Energy Holdings L.L.C. (the Sellers) completed the sale of their ownership interests in the Powerton and Joliet generation facilities and related assets, including the assumption by the purchaser of related liabilities. The loss, net of taxes, resulting from the transaction was immaterial. In December 2020, the leveraged lease relating to our interest in the Shawville facilities was modified and extended. Accordingly, the Shawville leveraged lease was reclassified as an operating lease and the underlying assets were recorded in Property, Plant and Equipment. See Note 8. Leases. In the second quarter of 2020, Energy Holdings completed its annual review of estimated residual values embedded in domestic energy leveraged leases and determined no impairments were necessary. During the second quarter of 2019, the outcome of Energy Holdings’ annual review indicated that the updated residual value estimate of the coal-fired Powerton lease was lower than the recorded residual value and the decline was deemed to be other than temporary as a result of expected future adverse market conditions. As a result, a pre-tax write-down of $58 million was reflected in Operating Revenues in 2019, calculated by comparing the gross investment in the leases before and after the revised residual estimates. The following table shows Energy Holdings’ gross and net lease investment as of December 31, 2020 and 2019. As of December 31, 2020 2019 Millions Lease Receivables (net of Non-Recourse Debt) $ 299 $ 498 Estimated Residual Value of Leased Assets 55 202 Total Investment in Rental Receivables 354 700 Unearned and Deferred Income (104) (203) Gross Investments in Leases 250 497 Deferred Tax Liabilities (64) (328) Net Investments in Leases $ 186 $ 169 The pre-tax income (loss) and income tax effects related to investments in leases, excluding gains and losses on sales and the impacts of the Tax Act, were as follows: Years Ended December 31, 2020 2019 2018 Millions Pre-Tax Income (Loss) from Leases $ 18 $ (39) $ 17 Income Tax Expense (Benefit) on Income (Loss) from Leases $ 2 $ (22) $ 6 Equity Method Investment PSEG Power had a 50% ownership interest in Kalaeloa, a combined-cycle generation facility in Hawaii of $64 million and $66 million as of December 31, 2020 and 2019, respectively. |
Financing Receivables
Financing Receivables | 12 Months Ended |
Dec. 31, 2020 | |
Financing Receivable, Recorded Investment [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 December 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. As of December 31, 2020, none of the solar loans were delinquent and no loans are currently expected to become 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 Consolidated Balance Sheets. The following table reflects the outstanding loans by class of customer, none of which would be considered “non-performing.” As of December 31, Outstanding Loans by Class of Customer 2020 2019 Millions Commercial/Industrial $ 145 $ 156 Residential 6 8 Total 151 164 Current Portion (included in Accounts Receivable) (29) (28) Noncurrent Portion (included in Long-Term Investments) $ 122 $ 136 The solar loans originated under three Solar Loan Programs are comprised as follows: Programs Balance as of December 31, 2020 Funding Provided Residential Loan Term Non-Residential Loan Term Millions Solar Loan I $ 20 prior to 2013 10 years 15 years Solar Loan II 69 prior to 2015 10 years 15 years Solar Loan III 62 largely funded as of December 31, 2020 10 years 10 years Total $ 151 The average life of loans paid in full is eight years, which is lower than the loan terms of 10 to 15 years due to the generation of SRECs being greater than expected and/or cash payments made to the loan. Payments on all outstanding loans were current as of December 31, 2020 and have an average remaining life of approximately four years. Energy Holdings Energy Holdings had net investments in assets subject to leveraged lease accounting of $186 million as of December 31, 2020 and $169 million as of December 31, 2019 (See Note 9. Long-Term Investments). 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 Counterparties’ Credit Rating Standard & Poor’s (S&P) as of December 31, 2020 As of December 31, 2020 Millions AA $ 9 A- 54 BBB+ to BBB 196 BB+ 40 Total $ 299 |
Public Service Electric and Gas Company | |
Financing Receivable, Recorded Investment [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 December 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. As of December 31, 2020, none of the solar loans were delinquent and no loans are currently expected to become 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 Consolidated Balance Sheets. The following table reflects the outstanding loans by class of customer, none of which would be considered “non-performing.” As of December 31, Outstanding Loans by Class of Customer 2020 2019 Millions Commercial/Industrial $ 145 $ 156 Residential 6 8 Total 151 164 Current Portion (included in Accounts Receivable) (29) (28) Noncurrent Portion (included in Long-Term Investments) $ 122 $ 136 The solar loans originated under three Solar Loan Programs are comprised as follows: Programs Balance as of December 31, 2020 Funding Provided Residential Loan Term Non-Residential Loan Term Millions Solar Loan I $ 20 prior to 2013 10 years 15 years Solar Loan II 69 prior to 2015 10 years 15 years Solar Loan III 62 largely funded as of December 31, 2020 10 years 10 years Total $ 151 The average life of loans paid in full is eight years, which is lower than the loan terms of 10 to 15 years due to the generation of SRECs being greater than expected and/or cash payments made to the loan. Payments on all outstanding loans were current as of December 31, 2020 and have an average remaining life of approximately four years. Energy Holdings Energy Holdings had net investments in assets subject to leveraged lease accounting of $186 million as of December 31, 2020 and $169 million as of December 31, 2019 (See Note 9. Long-Term Investments). 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 Counterparties’ Credit Rating Standard & Poor’s (S&P) as of December 31, 2020 As of December 31, 2020 Millions AA $ 9 A- 54 BBB+ to BBB 196 BB+ 40 Total $ 299 |
Trust Investments
Trust Investments | 12 Months Ended |
Dec. 31, 2020 | |
Schedule of Trust Investments [Line Items] | |
Trust Investments [Text Block] | NDT Fund In accordance with NRC regulations, entities owning an interest in nuclear generating facilities are required to determine the costs and funding methods necessary to decommission such facilities upon termination of operation. As a general practice, each nuclear owner places funds in independent external trust accounts it maintains to provide for decommissioning. PSEG Power is required to file periodic reports with the NRC demonstrating that its NDT Fund meets the formula-based minimum NRC funding requirements. 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. PSEG Power’s share of decommissioning costs related to its five nuclear units was estimated to be between $2.8 billion and $3.0 billion, including contingencies. The liability for decommissioning recorded on a discounted basis as of December 31, 2020 was approximately $852 million and is included in the Asset Retirement Obligation. 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 December 31, 2020 Cost Gross Gross Fair Millions Equity Securities Domestic $ 519 $ 305 $ (3) $ 821 International 388 152 (9) 531 Total Equity Securities 907 457 (12) 1,352 Available-for-Sale Debt Securities Government 555 27 (1) 581 Corporate 528 39 (1) 566 Total Available-for-Sale Debt Securities 1,083 66 (2) 1,147 Total NDT Fund Investments (A) $ 1,990 $ 523 $ (14) $ 2,499 (A) The NDT Fund Investments table excludes foreign currency of $2 million as of December 31, 2020, which is part of the NDT Fund. As of December 31, 2019 Cost Gross Gross Fair 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 on debt securities of $37 million (after-tax) were included in Accumulated Other Comprehensive Loss on PSEG’s and PSEG Power’s Consolidated Balance Sheets as of December 31, 2020. An impairment of debt securities of $(3) million was included in Net Gains (Losses) on Trust Investments in PSEG Power’s Consolidated Statement of Operations for the year ended December 31, 2020. The portion of net unrealized gains recognized during 2020 related to equity securities still held at the end of December 31, 2020 was $184 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 Consolidated Balance Sheets as shown in the following table. As of December 31, 2020 2019 Millions Accounts Receivable $ 11 $ 11 Accounts Payable $ 12 $ 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 December 31, 2020 As of December 31, 2019 Less Than 12 Greater Than 12 Less Than 12 Greater Than 12 Fair Gross Fair Gross Fair Gross Fair Gross Millions Equity Securities (A) Domestic $ 23 $ (2) $ 6 $ (1) $ 21 $ (1) $ 6 $ (3) International 26 (2) 27 (7) 28 (2) 34 (9) Total Equity Securities 49 (4) 33 (8) 49 (3) 40 (12) Available-for-Sale Debt Securities Government (B) 72 (1) — — 99 (2) 30 — Corporate (C) 31 (1) 7 — 49 — 12 (1) Total Available-for-Sale Debt Securities 103 (2) 7 — 148 (2) 42 (1) NDT Trust Investments $ 152 $ (6) $ 40 $ (8) $ 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: Years Ended December 31, 2020 2019 2018 Millions Proceeds from Sales (A) $ 2,031 $ 1,614 $ 1,398 Net Realized Gains (Losses): Gross Realized Gains $ 214 $ 107 $ 121 Gross Realized Losses (94) (53) (51) Net Realized Gains (Losses) on NDT Fund (B) 120 54 70 Unrealized Gains (Losses) on Equity Securities in NDT Fund 120 196 (209) Impairment of Available-for-Sale Debt Securities (C) (3) — — Net Gains (Losses) on NDT Fund Investments $ 237 $ 250 $ (139) (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 December 31, 2020 had the following maturities: Time Frame Fair Value Millions Less than one year $ 20 1 - 5 years 301 6 - 10 years 202 11 - 15 years 81 16 - 20 years 79 Over 20 years 464 Total NDT Available-for-Sale Debt Securities $ 1,147 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 December 31, 2020 Cost Gross Gross Fair Millions Equity Securities Domestic $ 21 $ 10 $ — $ 31 International — — — — Total Equity Securities 21 10 — 31 Available-for-Sale Debt Securities Government 94 6 — 100 Corporate 123 12 — 135 Total Available-for-Sale Debt Securities 217 18 — 235 Total Rabbi Trust Investments $ 238 $ 28 $ — $ 266 As of December 31, 2019 Cost Gross Gross Fair Millions Equity Securities Domestic $ 21 $ 7 $ — $ 28 International — — — — Total 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 on debt securities of $13 million (after-tax) were included in Accumulated Other Comprehensive Loss on PSEG’s Consolidated Balance Sheet as of December 31, 2020. The portion of net unrealized gains recognized during 2020 related to equity securities still held at the end of December 31, 2020 was $4 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 Consolidated Balance Sheets as shown in the following table. As of December 31, 2020 2019 Millions Accounts Receivable $ 1 $ 2 Accounts Payable $ 1 $ — The following table shows the value of securities in the Rabbi Trust Fund that have been in an unrealized loss position for less than and greater than 12 months: As of December 31, 2020 As of December 31, 2019 Less Than 12 Greater Than 12 Less Than 12 Greater Than 12 Fair Gross Fair Gross Fair Gross Fair Gross Millions Available-for-Sale Debt Securities Government (A) $ 19 $ — $ — $ — $ 26 $ — $ 3 $ — Corporate (B) 2 — 1 — 11 — 2 — Total Available-for-Sale Debt Securities 21 — 1 — 37 — 5 — Rabbi Trust Investments $ 21 $ — $ 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: Years Ended December 31, 2020 2019 2018 Millions Proceeds from Rabbi Trust Sales (A) $ 203 $ 173 $ 103 Net Realized Gains (Losses): Gross Realized Gains $ 19 $ 7 $ 2 Gross Realized Losses (6) (3) (4) Net Realized Gains (Losses) on Rabbi Trust (B) 13 4 (2) Unrealized Gains (Losses) on Equity Securities in Rabbi Trust 3 6 (2) Net Gains (Losses) on Rabbi Trust Investments $ 16 $ 10 $ (4) (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 December 31, 2020 had the following maturities: Time Frame Fair Value Millions Less than one year $ 5 1 - 5 years 39 6 - 10 years 30 11 - 15 years 12 16 - 20 years 30 Over 20 years 119 Total Rabbi Trust Available-for-Sale Debt Securities $ 235 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 December 31, As of December 31, 2020 2019 Millions PSE&G $ 51 $ 48 PSEG Power 66 62 Other 149 136 Total Rabbi Trust Investments $ 266 $ 246 |
Public Service Electric and Gas Company | |
Schedule of Trust Investments [Line Items] | |
Trust Investments [Text Block] | NDT Fund In accordance with NRC regulations, entities owning an interest in nuclear generating facilities are required to determine the costs and funding methods necessary to decommission such facilities upon termination of operation. As a general practice, each nuclear owner places funds in independent external trust accounts it maintains to provide for decommissioning. PSEG Power is required to file periodic reports with the NRC demonstrating that its NDT Fund meets the formula-based minimum NRC funding requirements. 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. PSEG Power’s share of decommissioning costs related to its five nuclear units was estimated to be between $2.8 billion and $3.0 billion, including contingencies. The liability for decommissioning recorded on a discounted basis as of December 31, 2020 was approximately $852 million and is included in the Asset Retirement Obligation. 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 December 31, 2020 Cost Gross Gross Fair Millions Equity Securities Domestic $ 519 $ 305 $ (3) $ 821 International 388 152 (9) 531 Total Equity Securities 907 457 (12) 1,352 Available-for-Sale Debt Securities Government 555 27 (1) 581 Corporate 528 39 (1) 566 Total Available-for-Sale Debt Securities 1,083 66 (2) 1,147 Total NDT Fund Investments (A) $ 1,990 $ 523 $ (14) $ 2,499 (A) The NDT Fund Investments table excludes foreign currency of $2 million as of December 31, 2020, which is part of the NDT Fund. As of December 31, 2019 Cost Gross Gross Fair 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 on debt securities of $37 million (after-tax) were included in Accumulated Other Comprehensive Loss on PSEG’s and PSEG Power’s Consolidated Balance Sheets as of December 31, 2020. An impairment of debt securities of $(3) million was included in Net Gains (Losses) on Trust Investments in PSEG Power’s Consolidated Statement of Operations for the year ended December 31, 2020. The portion of net unrealized gains recognized during 2020 related to equity securities still held at the end of December 31, 2020 was $184 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 Consolidated Balance Sheets as shown in the following table. As of December 31, 2020 2019 Millions Accounts Receivable $ 11 $ 11 Accounts Payable $ 12 $ 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 December 31, 2020 As of December 31, 2019 Less Than 12 Greater Than 12 Less Than 12 Greater Than 12 Fair Gross Fair Gross Fair Gross Fair Gross Millions Equity Securities (A) Domestic $ 23 $ (2) $ 6 $ (1) $ 21 $ (1) $ 6 $ (3) International 26 (2) 27 (7) 28 (2) 34 (9) Total Equity Securities 49 (4) 33 (8) 49 (3) 40 (12) Available-for-Sale Debt Securities Government (B) 72 (1) — — 99 (2) 30 — Corporate (C) 31 (1) 7 — 49 — 12 (1) Total Available-for-Sale Debt Securities 103 (2) 7 — 148 (2) 42 (1) NDT Trust Investments $ 152 $ (6) $ 40 $ (8) $ 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: Years Ended December 31, 2020 2019 2018 Millions Proceeds from Sales (A) $ 2,031 $ 1,614 $ 1,398 Net Realized Gains (Losses): Gross Realized Gains $ 214 $ 107 $ 121 Gross Realized Losses (94) (53) (51) Net Realized Gains (Losses) on NDT Fund (B) 120 54 70 Unrealized Gains (Losses) on Equity Securities in NDT Fund 120 196 (209) Impairment of Available-for-Sale Debt Securities (C) (3) — — Net Gains (Losses) on NDT Fund Investments $ 237 $ 250 $ (139) (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 December 31, 2020 had the following maturities: Time Frame Fair Value Millions Less than one year $ 20 1 - 5 years 301 6 - 10 years 202 11 - 15 years 81 16 - 20 years 79 Over 20 years 464 Total NDT Available-for-Sale Debt Securities $ 1,147 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 December 31, 2020 Cost Gross Gross Fair Millions Equity Securities Domestic $ 21 $ 10 $ — $ 31 International — — — — Total Equity Securities 21 10 — 31 Available-for-Sale Debt Securities Government 94 6 — 100 Corporate 123 12 — 135 Total Available-for-Sale Debt Securities 217 18 — 235 Total Rabbi Trust Investments $ 238 $ 28 $ — $ 266 As of December 31, 2019 Cost Gross Gross Fair Millions Equity Securities Domestic $ 21 $ 7 $ — $ 28 International — — — — Total 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 on debt securities of $13 million (after-tax) were included in Accumulated Other Comprehensive Loss on PSEG’s Consolidated Balance Sheet as of December 31, 2020. The portion of net unrealized gains recognized during 2020 related to equity securities still held at the end of December 31, 2020 was $4 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 Consolidated Balance Sheets as shown in the following table. As of December 31, 2020 2019 Millions Accounts Receivable $ 1 $ 2 Accounts Payable $ 1 $ — The following table shows the value of securities in the Rabbi Trust Fund that have been in an unrealized loss position for less than and greater than 12 months: As of December 31, 2020 As of December 31, 2019 Less Than 12 Greater Than 12 Less Than 12 Greater Than 12 Fair Gross Fair Gross Fair Gross Fair Gross Millions Available-for-Sale Debt Securities Government (A) $ 19 $ — $ — $ — $ 26 $ — $ 3 $ — Corporate (B) 2 — 1 — 11 — 2 — Total Available-for-Sale Debt Securities 21 — 1 — 37 — 5 — Rabbi Trust Investments $ 21 $ — $ 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: Years Ended December 31, 2020 2019 2018 Millions Proceeds from Rabbi Trust Sales (A) $ 203 $ 173 $ 103 Net Realized Gains (Losses): Gross Realized Gains $ 19 $ 7 $ 2 Gross Realized Losses (6) (3) (4) Net Realized Gains (Losses) on Rabbi Trust (B) 13 4 (2) Unrealized Gains (Losses) on Equity Securities in Rabbi Trust 3 6 (2) Net Gains (Losses) on Rabbi Trust Investments $ 16 $ 10 $ (4) (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 December 31, 2020 had the following maturities: Time Frame Fair Value Millions Less than one year $ 5 1 - 5 years 39 6 - 10 years 30 11 - 15 years 12 16 - 20 years 30 Over 20 years 119 Total Rabbi Trust Available-for-Sale Debt Securities $ 235 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 December 31, As of December 31, 2020 2019 Millions PSE&G $ 51 $ 48 PSEG Power 66 62 Other 149 136 Total Rabbi Trust Investments $ 266 $ 246 |
PSEG Power LLC | |
Schedule of Trust Investments [Line Items] | |
Trust Investments [Text Block] | NDT Fund In accordance with NRC regulations, entities owning an interest in nuclear generating facilities are required to determine the costs and funding methods necessary to decommission such facilities upon termination of operation. As a general practice, each nuclear owner places funds in independent external trust accounts it maintains to provide for decommissioning. PSEG Power is required to file periodic reports with the NRC demonstrating that its NDT Fund meets the formula-based minimum NRC funding requirements. 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. PSEG Power’s share of decommissioning costs related to its five nuclear units was estimated to be between $2.8 billion and $3.0 billion, including contingencies. The liability for decommissioning recorded on a discounted basis as of December 31, 2020 was approximately $852 million and is included in the Asset Retirement Obligation. 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 December 31, 2020 Cost Gross Gross Fair Millions Equity Securities Domestic $ 519 $ 305 $ (3) $ 821 International 388 152 (9) 531 Total Equity Securities 907 457 (12) 1,352 Available-for-Sale Debt Securities Government 555 27 (1) 581 Corporate 528 39 (1) 566 Total Available-for-Sale Debt Securities 1,083 66 (2) 1,147 Total NDT Fund Investments (A) $ 1,990 $ 523 $ (14) $ 2,499 (A) The NDT Fund Investments table excludes foreign currency of $2 million as of December 31, 2020, which is part of the NDT Fund. As of December 31, 2019 Cost Gross Gross Fair 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 on debt securities of $37 million (after-tax) were included in Accumulated Other Comprehensive Loss on PSEG’s and PSEG Power’s Consolidated Balance Sheets as of December 31, 2020. An impairment of debt securities of $(3) million was included in Net Gains (Losses) on Trust Investments in PSEG Power’s Consolidated Statement of Operations for the year ended December 31, 2020. The portion of net unrealized gains recognized during 2020 related to equity securities still held at the end of December 31, 2020 was $184 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 Consolidated Balance Sheets as shown in the following table. As of December 31, 2020 2019 Millions Accounts Receivable $ 11 $ 11 Accounts Payable $ 12 $ 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 December 31, 2020 As of December 31, 2019 Less Than 12 Greater Than 12 Less Than 12 Greater Than 12 Fair Gross Fair Gross Fair Gross Fair Gross Millions Equity Securities (A) Domestic $ 23 $ (2) $ 6 $ (1) $ 21 $ (1) $ 6 $ (3) International 26 (2) 27 (7) 28 (2) 34 (9) Total Equity Securities 49 (4) 33 (8) 49 (3) 40 (12) Available-for-Sale Debt Securities Government (B) 72 (1) — — 99 (2) 30 — Corporate (C) 31 (1) 7 — 49 — 12 (1) Total Available-for-Sale Debt Securities 103 (2) 7 — 148 (2) 42 (1) NDT Trust Investments $ 152 $ (6) $ 40 $ (8) $ 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: Years Ended December 31, 2020 2019 2018 Millions Proceeds from Sales (A) $ 2,031 $ 1,614 $ 1,398 Net Realized Gains (Losses): Gross Realized Gains $ 214 $ 107 $ 121 Gross Realized Losses (94) (53) (51) Net Realized Gains (Losses) on NDT Fund (B) 120 54 70 Unrealized Gains (Losses) on Equity Securities in NDT Fund 120 196 (209) Impairment of Available-for-Sale Debt Securities (C) (3) — — Net Gains (Losses) on NDT Fund Investments $ 237 $ 250 $ (139) (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 December 31, 2020 had the following maturities: Time Frame Fair Value Millions Less than one year $ 20 1 - 5 years 301 6 - 10 years 202 11 - 15 years 81 16 - 20 years 79 Over 20 years 464 Total NDT Available-for-Sale Debt Securities $ 1,147 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 December 31, 2020 Cost Gross Gross Fair Millions Equity Securities Domestic $ 21 $ 10 $ — $ 31 International — — — — Total Equity Securities 21 10 — 31 Available-for-Sale Debt Securities Government 94 6 — 100 Corporate 123 12 — 135 Total Available-for-Sale Debt Securities 217 18 — 235 Total Rabbi Trust Investments $ 238 $ 28 $ — $ 266 As of December 31, 2019 Cost Gross Gross Fair Millions Equity Securities Domestic $ 21 $ 7 $ — $ 28 International — — — — Total 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 on debt securities of $13 million (after-tax) were included in Accumulated Other Comprehensive Loss on PSEG’s Consolidated Balance Sheet as of December 31, 2020. The portion of net unrealized gains recognized during 2020 related to equity securities still held at the end of December 31, 2020 was $4 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 Consolidated Balance Sheets as shown in the following table. As of December 31, 2020 2019 Millions Accounts Receivable $ 1 $ 2 Accounts Payable $ 1 $ — The following table shows the value of securities in the Rabbi Trust Fund that have been in an unrealized loss position for less than and greater than 12 months: As of December 31, 2020 As of December 31, 2019 Less Than 12 Greater Than 12 Less Than 12 Greater Than 12 Fair Gross Fair Gross Fair Gross Fair Gross Millions Available-for-Sale Debt Securities Government (A) $ 19 $ — $ — $ — $ 26 $ — $ 3 $ — Corporate (B) 2 — 1 — 11 — 2 — Total Available-for-Sale Debt Securities 21 — 1 — 37 — 5 — Rabbi Trust Investments $ 21 $ — $ 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: Years Ended December 31, 2020 2019 2018 Millions Proceeds from Rabbi Trust Sales (A) $ 203 $ 173 $ 103 Net Realized Gains (Losses): Gross Realized Gains $ 19 $ 7 $ 2 Gross Realized Losses (6) (3) (4) Net Realized Gains (Losses) on Rabbi Trust (B) 13 4 (2) Unrealized Gains (Losses) on Equity Securities in Rabbi Trust 3 6 (2) Net Gains (Losses) on Rabbi Trust Investments $ 16 $ 10 $ (4) (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 December 31, 2020 had the following maturities: Time Frame Fair Value Millions Less than one year $ 5 1 - 5 years 39 6 - 10 years 30 11 - 15 years 12 16 - 20 years 30 Over 20 years 119 Total Rabbi Trust Available-for-Sale Debt Securities $ 235 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 December 31, As of December 31, 2020 2019 Millions PSE&G $ 51 $ 48 PSEG Power 66 62 Other 149 136 Total Rabbi Trust Investments $ 266 $ 246 |
Goodwill And Other Intangibles
Goodwill And Other Intangibles | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill [Line Items] | |
Goodwill And Other Intangibles | Goodwill and Other Intangibles In 2019, PSEG Power determined its fair value using a market-based enterprise valuation technique. Based on the results of the annual impairment test, PSEG Power determined that its entire goodwill was impaired and recorded a loss of $16 million in O&M Expense. The decrease in the fair value was primarily due to the continued decline in wholesale power market pricing. As of December 31, 2020 and 2019, PSEG Power had intangible assets of $158 million and $149 million, respectively, related to emissions allowances and RECs. Emissions allowances and RECs are recorded at cost and evaluated for impairment at least annually. Emissions expense includes impairments of emissions allowances, if any, and costs for emissions, which is recorded as emissions occur. As load is served under contracts requiring energy from renewable sources, the related expense is recorded. The changes to PSEG Power’s intangible assets during 2019 and 2020 are as follows: Emissions Allowances RECs Total Other Intangibles Millions Balance as of January 1, 2019 $ 84 $ 59 $ 143 Retirements (6) (83) (89) Purchases 26 72 98 Sales and Transfers, net — (3) (3) Balance as of December 31, 2019 $ 104 $ 45 $ 149 Retirements (9) (93) (102) Purchases 17 94 111 Balance as of December 31, 2020 $ 112 $ 46 $ 158 |
PSEG Power LLC | |
Goodwill [Line Items] | |
Goodwill And Other Intangibles | Goodwill and Other Intangibles In 2019, PSEG Power determined its fair value using a market-based enterprise valuation technique. Based on the results of the annual impairment test, PSEG Power determined that its entire goodwill was impaired and recorded a loss of $16 million in O&M Expense. The decrease in the fair value was primarily due to the continued decline in wholesale power market pricing. As of December 31, 2020 and 2019, PSEG Power had intangible assets of $158 million and $149 million, respectively, related to emissions allowances and RECs. Emissions allowances and RECs are recorded at cost and evaluated for impairment at least annually. Emissions expense includes impairments of emissions allowances, if any, and costs for emissions, which is recorded as emissions occur. As load is served under contracts requiring energy from renewable sources, the related expense is recorded. The changes to PSEG Power’s intangible assets during 2019 and 2020 are as follows: Emissions Allowances RECs Total Other Intangibles Millions Balance as of January 1, 2019 $ 84 $ 59 $ 143 Retirements (6) (83) (89) Purchases 26 72 98 Sales and Transfers, net — (3) (3) Balance as of December 31, 2019 $ 104 $ 45 $ 149 Retirements (9) (93) (102) Purchases 17 94 111 Balance as of December 31, 2020 $ 112 $ 46 $ 158 |
Asset Retirement Obligations (A
Asset Retirement Obligations (AROs) | 12 Months Ended |
Dec. 31, 2020 | |
Asset Retirement Obligation [Line Items] | |
Asset Retirement Obligations (AROs) | Asset Retirement Obligations (AROs) PSEG, PSE&G and PSEG Power recognize liabilities for the expected cost of retiring long-lived assets for which a legal obligation exists to remove or dispose of an asset or some component of an asset at retirement. These AROs are recorded at fair value in the period in which they are incurred and are capitalized as part of the carrying amount of the related long-lived assets. PSEG Power accretes the ARO liability to reflect the passage of time with the corresponding expense recorded in O&M. PSE&G, as a rate-regulated entity, recognizes Regulatory Assets or Liabilities as a result of timing differences between the recording of costs and costs recovered through the rate-making process. PSE&G has conditional AROs primarily for legal obligations related to the removal of treated wood poles and the requirement to seal natural gas pipelines at all sources of gas when the pipelines are no longer in service. PSE&G does not record an ARO for its protected steel and poly-based natural gas lines, as management believes that these categories of gas lines have an indeterminable life. PSEG Power’s ARO liability primarily relates to the decommissioning of its nuclear power plants in accordance with NRC requirements. PSEG Power has an independent external trust that is intended to fund decommissioning of its nuclear facilities upon termination of operation. For additional information, see Note 11. Trust Investments. PSEG Power also identified conditional AROs primarily related to PSEG Power’s fossil generation units and solar facilities, including liabilities for removal of asbestos, ash ponds, stored hazardous liquid material and underground storage tanks from industrial power sites, and demolition of certain plants, and the restoration of the sites at which they reside, when the plants are no longer in service. To estimate the fair value of its AROs, PSEG Power uses a probability weighted, discounted cash flow model which, on a unit by unit basis, considers multiple outcome scenarios that include significant estimates and assumptions, and are based on third-party decommissioning cost estimates, cost escalation rates, inflation rates and discount rates. Updated cost studies are obtained triennially unless new information necessitates more frequent updates. The most recent cost study was done in 2018. When assumptions are revised to calculate fair values of existing AROs, generally, the ARO balance and corresponding long-lived asset are adjusted which impact the amount of accretion and depreciation expense recognized in future periods. For PSE&G, Regulatory Assets and Regulatory Liabilities result when accretion and amortization are adjusted to match rates established by regulators resulting in the regulatory deferral of any gain or loss. The changes to the ARO liabilities for PSEG, PSE&G and PSEG Power during 2019 and 2020 are presented in the following table: PSEG PSE&G PSEG Power Other Millions ARO Liability as of January 1, 2019 $ 1,063 $ 302 $ 758 $ 3 Liabilities Settled (19) (18) (1) — Liabilities Incurred 3 1 2 — Accretion Expense 40 — 40 — Accretion Expense Deferred and Recovered in Rate Base (A) 16 16 — — Revision to Present Values of Estimated Cash Flows (16) 2 (18) — ARO Liability as of December 31, 2019 $ 1,087 $ 303 $ 781 $ 3 Liabilities Settled (9) (7) (2) — Accretion Expense 42 — 42 — Accretion Expense Deferred and Recovered in Rate Base (A) 17 17 — — Revision to Present Values of Estimated Cash Flows 75 1 74 — ARO Liability as of December 31, 2020 $ 1,212 $ 314 $ 895 $ 3 (A) Not reflected as expense in Consolidated Statements of Operations In early 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 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. In addition, PSEG Power reviewed its probabilities of early retirement on its nuclear units and concluded that no adjustments were necessary as of December 31, 2020. In 2019, PSEG Power’s decrease of $18 million was primarily due to the sale of its interests in the Keystone and Conemaugh units. These changes had an immaterial impact in PSEG Power’s Consolidated Statement of Operations. See Note 4. Early Plant Retirements/Asset Dispositions for additional information. |
PSEG Power LLC | |
Asset Retirement Obligation [Line Items] | |
Asset Retirement Obligations (AROs) | Asset Retirement Obligations (AROs) PSEG, PSE&G and PSEG Power recognize liabilities for the expected cost of retiring long-lived assets for which a legal obligation exists to remove or dispose of an asset or some component of an asset at retirement. These AROs are recorded at fair value in the period in which they are incurred and are capitalized as part of the carrying amount of the related long-lived assets. PSEG Power accretes the ARO liability to reflect the passage of time with the corresponding expense recorded in O&M. PSE&G, as a rate-regulated entity, recognizes Regulatory Assets or Liabilities as a result of timing differences between the recording of costs and costs recovered through the rate-making process. PSE&G has conditional AROs primarily for legal obligations related to the removal of treated wood poles and the requirement to seal natural gas pipelines at all sources of gas when the pipelines are no longer in service. PSE&G does not record an ARO for its protected steel and poly-based natural gas lines, as management believes that these categories of gas lines have an indeterminable life. PSEG Power’s ARO liability primarily relates to the decommissioning of its nuclear power plants in accordance with NRC requirements. PSEG Power has an independent external trust that is intended to fund decommissioning of its nuclear facilities upon termination of operation. For additional information, see Note 11. Trust Investments. PSEG Power also identified conditional AROs primarily related to PSEG Power’s fossil generation units and solar facilities, including liabilities for removal of asbestos, ash ponds, stored hazardous liquid material and underground storage tanks from industrial power sites, and demolition of certain plants, and the restoration of the sites at which they reside, when the plants are no longer in service. To estimate the fair value of its AROs, PSEG Power uses a probability weighted, discounted cash flow model which, on a unit by unit basis, considers multiple outcome scenarios that include significant estimates and assumptions, and are based on third-party decommissioning cost estimates, cost escalation rates, inflation rates and discount rates. Updated cost studies are obtained triennially unless new information necessitates more frequent updates. The most recent cost study was done in 2018. When assumptions are revised to calculate fair values of existing AROs, generally, the ARO balance and corresponding long-lived asset are adjusted which impact the amount of accretion and depreciation expense recognized in future periods. For PSE&G, Regulatory Assets and Regulatory Liabilities result when accretion and amortization are adjusted to match rates established by regulators resulting in the regulatory deferral of any gain or loss. The changes to the ARO liabilities for PSEG, PSE&G and PSEG Power during 2019 and 2020 are presented in the following table: PSEG PSE&G PSEG Power Other Millions ARO Liability as of January 1, 2019 $ 1,063 $ 302 $ 758 $ 3 Liabilities Settled (19) (18) (1) — Liabilities Incurred 3 1 2 — Accretion Expense 40 — 40 — Accretion Expense Deferred and Recovered in Rate Base (A) 16 16 — — Revision to Present Values of Estimated Cash Flows (16) 2 (18) — ARO Liability as of December 31, 2019 $ 1,087 $ 303 $ 781 $ 3 Liabilities Settled (9) (7) (2) — Accretion Expense 42 — 42 — Accretion Expense Deferred and Recovered in Rate Base (A) 17 17 — — Revision to Present Values of Estimated Cash Flows 75 1 74 — ARO Liability as of December 31, 2020 $ 1,212 $ 314 $ 895 $ 3 (A) Not reflected as expense in Consolidated Statements of Operations In early 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 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. In addition, PSEG Power reviewed its probabilities of early retirement on its nuclear units and concluded that no adjustments were necessary as of December 31, 2020. In 2019, PSEG Power’s decrease of $18 million was primarily due to the sale of its interests in the Keystone and Conemaugh units. These changes had an immaterial impact in PSEG Power’s Consolidated Statement of Operations. See Note 4. Early Plant Retirements/Asset Dispositions for additional information. |
Public Service Electric and Gas Company | |
Asset Retirement Obligation [Line Items] | |
Asset Retirement Obligations (AROs) | Asset Retirement Obligations (AROs) PSEG, PSE&G and PSEG Power recognize liabilities for the expected cost of retiring long-lived assets for which a legal obligation exists to remove or dispose of an asset or some component of an asset at retirement. These AROs are recorded at fair value in the period in which they are incurred and are capitalized as part of the carrying amount of the related long-lived assets. PSEG Power accretes the ARO liability to reflect the passage of time with the corresponding expense recorded in O&M. PSE&G, as a rate-regulated entity, recognizes Regulatory Assets or Liabilities as a result of timing differences between the recording of costs and costs recovered through the rate-making process. PSE&G has conditional AROs primarily for legal obligations related to the removal of treated wood poles and the requirement to seal natural gas pipelines at all sources of gas when the pipelines are no longer in service. PSE&G does not record an ARO for its protected steel and poly-based natural gas lines, as management believes that these categories of gas lines have an indeterminable life. PSEG Power’s ARO liability primarily relates to the decommissioning of its nuclear power plants in accordance with NRC requirements. PSEG Power has an independent external trust that is intended to fund decommissioning of its nuclear facilities upon termination of operation. For additional information, see Note 11. Trust Investments. PSEG Power also identified conditional AROs primarily related to PSEG Power’s fossil generation units and solar facilities, including liabilities for removal of asbestos, ash ponds, stored hazardous liquid material and underground storage tanks from industrial power sites, and demolition of certain plants, and the restoration of the sites at which they reside, when the plants are no longer in service. To estimate the fair value of its AROs, PSEG Power uses a probability weighted, discounted cash flow model which, on a unit by unit basis, considers multiple outcome scenarios that include significant estimates and assumptions, and are based on third-party decommissioning cost estimates, cost escalation rates, inflation rates and discount rates. Updated cost studies are obtained triennially unless new information necessitates more frequent updates. The most recent cost study was done in 2018. When assumptions are revised to calculate fair values of existing AROs, generally, the ARO balance and corresponding long-lived asset are adjusted which impact the amount of accretion and depreciation expense recognized in future periods. For PSE&G, Regulatory Assets and Regulatory Liabilities result when accretion and amortization are adjusted to match rates established by regulators resulting in the regulatory deferral of any gain or loss. The changes to the ARO liabilities for PSEG, PSE&G and PSEG Power during 2019 and 2020 are presented in the following table: PSEG PSE&G PSEG Power Other Millions ARO Liability as of January 1, 2019 $ 1,063 $ 302 $ 758 $ 3 Liabilities Settled (19) (18) (1) — Liabilities Incurred 3 1 2 — Accretion Expense 40 — 40 — Accretion Expense Deferred and Recovered in Rate Base (A) 16 16 — — Revision to Present Values of Estimated Cash Flows (16) 2 (18) — ARO Liability as of December 31, 2019 $ 1,087 $ 303 $ 781 $ 3 Liabilities Settled (9) (7) (2) — Accretion Expense 42 — 42 — Accretion Expense Deferred and Recovered in Rate Base (A) 17 17 — — Revision to Present Values of Estimated Cash Flows 75 1 74 — ARO Liability as of December 31, 2020 $ 1,212 $ 314 $ 895 $ 3 (A) Not reflected as expense in Consolidated Statements of Operations In early 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 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. In addition, PSEG Power reviewed its probabilities of early retirement on its nuclear units and concluded that no adjustments were necessary as of December 31, 2020. In 2019, PSEG Power’s decrease of $18 million was primarily due to the sale of its interests in the Keystone and Conemaugh units. These changes had an immaterial impact in PSEG Power’s Consolidated Statement of Operations. See Note 4. Early Plant Retirements/Asset Dispositions for additional information. |
Pension, OPEB and Savings Plans
Pension, OPEB and Savings Plans | 12 Months Ended |
Dec. 31, 2020 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Pension, OPEB and Savings Plans | Pension, Other Postretirement Benefits (OPEB) and Savings Plans PSEG sponsors and Services administers 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’s qualified pension plans consist of two qualified defined benefit pension plans, Pension Plan and Pension Plan II. Each of the qualified pension plans include a Final Average Pay and two Cash Balance components. In addition, represented and non-represented employees are eligible for participation in PSEG’s two defined contribution plans. 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 its respective year-end Consolidated Balance Sheets. For underfunded plans, the liability is equal to the difference between the plan’s benefit obligation and the fair value of plan assets. For defined benefit pension plans, the benefit obligation is the projected benefit obligation. For OPEB plans, the benefit obligation is the accumulated postretirement benefit obligation. In addition, GAAP requires that the total unrecognized costs for defined benefit pension and OPEB plans be recorded as an after-tax charge to Accumulated Other Comprehensive Income (Loss), a separate component of Stockholders’ Equity. However, for PSE&G, because the amortization of the unrecognized costs is being collected from customers, the accumulated unrecognized costs are recorded as a Regulatory Asset. The unrecognized costs represent actuarial gains or losses and prior service costs which have not been expensed. For PSE&G, the Regulatory Asset is amortized and recorded as net periodic pension cost in the Consolidated Statements of Operations. For PSEG Power, the charge to Accumulated Other Comprehensive Income (Loss) is amortized and recorded as net periodic pension cost in the Consolidated Statements of Operations. In late June 2019, PSEG approved a plan amendment to its qualified pension plan, effective July 1, 2019. The amendment involved the spin-off of predominantly active participants from the existing qualified pension plan (Pension Plan) into a new qualified pension plan (Pension Plan II). Benefits offered to the plan participants remain unchanged. The existing plan’s pension benefit obligations, as well as the asset values, were remeasured as of July 1, 2019 as a result of the amendment. As of July 1, 2019, the weighted average discount rate for the combined plans decreased from 4.41% to 3.65% and the expected long-term rate of return on plan assets remained at 7.80%. Actuarial gains and losses associated with the Pension Plan will be amortized over the average remaining life expectancy of the inactive participants (as opposed to the average remaining service of active participants prior to the plan being split). Actuarial gains and losses associated with Pension Plan II will be amortized over the average remaining service of active participants. The combined remeasured qualified pension plans’ projected benefit obligation as of July 1, 2019 was $6.4 billion. Amounts for Servco are not included in any of the following pension and OPEB benefit information for PSEG and its affiliates but rather are separately disclosed later in this note. The following table provides a roll-forward of the changes in the benefit obligation and the fair value of plan assets during each of the two years in the periods ended December 31, 2020 and 2019. It also provides the funded status of the plans and the amounts recognized and amounts not recognized on the Consolidated Balance Sheets at the end of both years. Pension Benefits Other Benefits 2020 2019 2020 2019 Millions Change in Benefit Obligation Benefit Obligation at Beginning of Year (A) $ 6,892 $ 5,921 $ 1,285 $ 1,203 Service Cost 141 123 9 10 Interest Cost 192 218 34 45 Actuarial (Gain) Loss (B) 615 955 32 109 Gross Benefits Paid (333) (325) (50) (82) Plan Amendments — — (4) — Benefit Obligation at End of Year (A) $ 7,507 $ 6,892 $ 1,306 $ 1,285 Change in Plan Assets Fair Value of Assets at Beginning of Year $ 5,929 $ 5,120 $ 540 $ 488 Actual Return on Plan Assets 761 1,122 70 107 Employer Contributions 11 12 4 27 Gross Benefits Paid (333) (325) (50) (82) Fair Value of Assets at End of Year $ 6,368 $ 5,929 $ 564 $ 540 Funded Status Funded Status (Plan Assets less Benefit Obligation) $ (1,139) $ (963) $ (742) $ (745) Additional Amounts Recognized in the Consolidated Balance Sheets Current Accrued Benefit Cost $ (11) $ (11) $ (12) $ (11) Noncurrent Accrued Benefit Cost (1,128) (952) (730) (734) Amounts Recognized $ (1,139) $ (963) $ (742) $ (745) Additional Amounts Recognized in Accumulated Other Comprehensive Income (Loss), Regulated Assets and Deferred Assets (C) Prior Service Credit $ — $ (10) $ (310) $ (433) Net Actuarial Loss 2,354 2,150 364 409 Total $ 2,354 $ 2,140 $ 54 $ (24) (A) Represents projected benefit obligation for pension benefits and the accumulated postretirement benefit obligation for other benefits. The vested benefit obligation is the actuarial present value of the vested benefits to which the employee is currently entitled but based on the employee’s expected date of separation or retirement. (B) For pension benefits, the net actuarial loss was primarily due to a decrease in the discount rate. For OPEB, the net actuarial loss was primarily due to a decrease in the discount rate, partially offset by actuarial gains driven by lower than expected claims experience. (C) Includes $760 million ($545 million, after-tax) and $695 million ($499 million, after-tax) in Accumulated Other Comprehensive Loss related to Pension and OPEB as of December 31, 2020 and 2019, respectively. Also includes Regulatory Assets of $1,489 million and Deferred Assets of $159 million as of December 31, 2020 and Regulatory Assets of $1,284 million and Deferred Assets of $137 million as of December 31, 2019. The pension benefits table above provides information relating to the funded status of the qualified and nonqualified pension and OPEB plans on an aggregate basis. As of December 31, 2020, PSEG had funded approximately 85% of its projected pension benefit obligation. This percentage does not include $266 million of assets in the Rabbi Trust as of December 31, 2020 which were used partially to fund the nonqualified pension plans. As of December 31, 2020, the nonqualified pension plans included in the projected benefit obligation in the above table were $182 million. Accumulated Benefit Obligation The accumulated benefit obligation for all PSEG’s defined benefit pension plans was $7.3 billion as of December 31, 2020 and $6.7 billion as of December 31, 2019. The following table provides the components of net periodic benefit cost relating to all qualified and nonqualified pension and OPEB plans on an aggregate basis for PSEG, excluding Servco for the years ended December 31, 2020, 2019 and 2018. 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 Years Ended December 31, Other Benefits Years Ended December 31, 2020 2019 2018 2020 2019 2018 Millions Components of Net Periodic Benefit (Credits) Costs Service Cost (included in O&M Expense) $ 141 $ 123 $ 130 $ 9 $ 10 $ 18 Non-Service Components of Pension and OPEB (Credits) Costs Interest Cost 192 218 208 34 45 66 Expected Return on Plan Assets (443) (408) (441) (39) (36) (41) Amortization of Net Prior Service Credit (10) (18) (18) (128) (128) (1) Actuarial Loss 92 96 85 47 50 64 Non-Service Components of Pension and OPEB (Credits) Costs (169) (112) (166) (86) (69) 88 Total Benefit (Credits) Costs $ (28) $ 11 $ (36) $ (77) $ (59) $ 106 Pension costs and OPEB costs for PSEG, PSE&G and PSEG Power are detailed as follows: Pension Benefits Other Benefits 2020 2019 2018 2020 2019 2018 Millions PSE&G $ (27) $ — $ (31) $ (76) $ (62) $ 68 PSEG Power (5) 4 (9) — 3 32 Other 4 7 4 (1) — 6 Total Benefit (Credits) Costs $ (28) $ 11 $ (36) $ (77) $ (59) $ 106 The following table provides the pre-tax changes recognized in Accumulated Other Comprehensive Income (Loss), Regulatory Assets and Deferred Assets: Pension OPEB 2020 2019 2020 2019 Millions Net Actuarial (Gain) Loss in Current Period $ 296 $ 241 $ 2 $ 39 Amortization of Net Actuarial Gain (Loss) (92) (96) (47) (50) Prior Service Cost (Credit) in Current Period — — (5) — Amortization of Prior Service Credit 10 18 128 128 Total $ 214 $ 163 $ 78 $ 117 The following assumptions were used to determine the benefit obligations and net periodic benefit costs: Pension Benefits Other Benefits 2020 2019 2018 2020 2019 2018 Weighted-Average Assumptions Used to Determine Benefit Obligations as of December 31 Discount Rate 2.61 % 3.30 % 4.41 % 2.46 % 3.20 % 4.31 % Rate of Compensation Increase 4.40 % 3.90 % 3.90 % 4.40 % 3.90 % 3.90 % Cash Balance Interest Crediting Rate 6.00 % 6.00 % 6.00 % N/A N/A N/A Weighted-Average Assumptions Used to Determine Net Periodic Benefit Cost for Years Ended December 31 Discount Rate 3.30 % 4.41 % 3.73 % 3.20 % 4.31 % 3.76 % Service Cost Interest Rate 3.49 % 4.58 % 3.88 % 3.50 % 4.48 % 3.90 % Interest Cost Interest Rate 2.87 % 4.03 % 3.35 % 2.87 % 3.91 % 3.39 % Expected Return on Plan Assets 7.70 % 7.80 % 7.80 % 7.70 % 7.79 % 7.80 % Rate of Compensation Increase 3.90 % 3.90 % 3.90 % 3.90 % 3.90 % 3.90 % Cash Balance Interest Crediting Rate 6.00 % 6.00 % 6.00 % N/A N/A N/A Assumed Health Care Cost Trend Rates as of December 31 Health Care Costs Immediate Rate 6.37 % 6.68 % 7.28 % Ultimate Rate 4.75 % 4.75 % 4.75 % Year Ultimate Rate Reached 2029 2029 2026 Plan Assets The investments of pension and OPEB plans are held in a trust account by the Trustee and consist of an undivided interest in an investment account of the Master Trust. The investments in the pension and OPEB plans are measured at fair value within a hierarchy that prioritizes the inputs to fair value measurements into three levels. See Note 19. Fair Value Measurements for more information on fair value guidance. Use of the Master Trust permits the commingling of pension plan assets and OPEB plan assets for investment and administrative purposes. Although assets of the plans are commingled in the Master Trust, the Trustee maintains supporting records for the purpose of allocating the net gain or loss of the investment account to the respective participating plans. The net investment income of the investment assets is allocated by the Trustee to each participating plan based on the relationship of the interest of each plan to the total of the interests of the participating plans. As of December 31, 2020, the pension plan interest and OPEB plan interest in such assets of the Master Trust were approximately 92% and 8%, respectively. The following tables present information about the investments measured at fair value on a recurring basis as of December 31, 2020 and 2019, including the fair value measurements and the levels of inputs used in determining those fair values. Recurring Fair Value Measurements as of December 31, 2020 Quoted Market Prices Significant Other Significant Description Total (Level 1) (Level 2) (Level 3) Millions Cash Equivalents (A) $ 85 $ 85 $ — $ — Equity Securities Common Stock (B) 1,763 1,763 — — Commingled (C) 1,964 1,025 939 — Preferred Stock (B) 10 10 — — Other (D) 1 1 — — Debt Securities (E) U.S. Treasury 419 — 419 — Government—Other 258 — 258 — Corporate 823 — 823 — Commingled 4 4 — — Subtotal Fair Value $ 5,327 $ 2,888 $ 2,439 $ — Measured at net asset value practical expedient Commingled—Equities (F) 1,283 Real Estate Investment (G) 306 Private Equity (H) 5 Total Fair Value (I) $ 6,921 Recurring Fair Value Measurements as of December 31, 2019 Quoted Market Prices Significant Other Significant Description Total (Level 1) (Level 2) (Level 3) Millions Cash Equivalents (A) $ 104 $ 103 $ 1 $ — Equity Securities Common Stock (B) 1,487 1,487 — — Commingled (C) 1,707 1,042 665 — Preferred Stock (B) 19 19 — — Other (D) 3 3 — — Debt Securities (E) U.S. Treasury 544 — 544 — Government—Other 284 — 284 — Corporate 837 — 837 — Commingled 3 3 — — Other (Future Contracts) (3) (3) — — Subtotal Fair Value $ 4,985 $ 2,654 $ 2,331 $ — Measured at net asset value practical expedient Commingled—Equities (F) 1,154 Real Estate Investment (G) 302 Private Equity (H) 8 Total Fair Value (I) $ 6,449 (A) The Collective Investment Fund publishes a daily net asset value (NAV) which participants may use for daily redemptions without restrictions (Level 1). Certain temporary investments are valued using inputs such as time-to-maturity, coupon rate, quality rating and current yield (Level 2). (B) Common stocks and preferred stocks are measured using observable data in active markets and considered Level 1. (C) Commingled Funds that allow daily redemption at their daily published NAV without restrictions are classified as Level 1. Commingled Funds that publish daily NAV but with certain near-term redemption restrictions which prevent redemption at the published daily NAV are classified as Level 2. (D) Investment in a publicly traded limited partnership. (E) Debt securities include mainly investment grade corporate and municipal bonds, U.S. Treasury obligations and Federal Agency asset-backed securities with a wide range of maturities. These investments are valued using an evaluated pricing approach that varies by asset class and reflects observable market information such as the most recent exchange price or quoted bid for similar securities. Market-based standard inputs typically include benchmark yields, reported trades, broker/dealer quotes and issuer spreads or the most recent quotes for similar securities which are a Level 2 measure. (F) Certain commingled equity funds are not included in the fair value hierarchy as they are measured at fair value using the NAV per share (or its equivalent) practical expedient. These funds do not meet the definition of readily determinable fair value due to the frequency of publishing NAV (monthly). The objectives of these funds are mainly tracking the S&P Index or achieving long-term growth through investment in foreign equity securities and the Morgan Stanley Capital International Index. (G) The unlisted real estate fund invests in office, apartment, industrial and retail space. The fund is valued using the NAV per unit of funds. The investment value of the real estate properties is determined on a quarterly basis by independent market appraisers engaged by the board of directors of the fund. The ability to redeem funds is subject to the availability of cash arising from net investment income, allocations and the sale of investments in the normal course of business. The fund’s NAV is published quarterly. In addition, redemptions require one quarter advance notice prior to redemption and are fulfilled quarterly. The fund, therefore, does not meet the definition of readily determinable fair value. The purpose of the fund is to acquire, own, hold for investment and ultimately dispose of investments in real estate and real estate-related assets with the intention of achieving current income, capital appreciation or both. (H) Private equity investments primarily include various limited partnerships that invest in either operating companies through acquisitions or developing a portfolio of non-U.S. distressed investments to maximize total return on capital. These investments are valued at NAV (or its equivalent) on a quarterly basis and have significant redemption restrictions preventing redemption until fund liquidation and limited ability to sell these investments. Fund liquidation is not expected to occur for several more years. These investments are not included in the fair value hierarchy in accordance with the guidance on NAV practical expedient. (I) Excludes net receivables of $10 million and $15 million as of December 31, 2020 and 2019, respectively, which consist of interest, dividends and receivables and payables related to pending securities sales and purchases. In addition, the table excludes cash and foreign currency of $1 million and $5 million as of December 31, 2020 and 2019, respectively. The following table provides the percentage of fair value of total plan assets for each major category of plan assets held for the qualified pension and OPEB plans as of the measurement date, December 31: As of December 31, Investments 2020 2019 Equity Securities 72 % 68 % Debt Securities 22 26 Other Investments 6 6 Total Percentage 100 % 100 % PSEG utilizes forecasted returns, risk, and correlation of all asset classes in order to develop an efficient portfolio. PSEG’s latest asset/liability study indicates that a long-term target asset allocation of 59% equities, 18% real assets and 23% fixed income is consistent with the funds’ financial objectives. Certain investments in real assets are made through investing in equity securities and tracked as equities when reporting fair value; however, they are viewed by their asset class, real assets, in our target asset allocation. Derivative financial instruments are used by the plans’ investment managers primarily to adjust the fixed income duration of the portfolio and hedge the currency risk component of foreign investments. The expected long-term rate of return on plan assets was 7.7% for 2020 and will be the same for 2021. This expected return was determined based on the study discussed above, including a premium for active management and considered the plans’ historical annualized rate of return since inception. Plan Contributions PSEG does not plan to contribute to its pension and OPEB plans in 2021. 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 volatility in 2020 associated with the ongoing coronavirus pandemic is not expected to impact PSEG’s pension contributions in 2021. Estimated Future Benefit Payments The following pension benefit and postretirement benefit payments are expected to be paid to plan participants. Year Pension Other Benefits Millions 2021 $ 389 $ 83 2022 368 84 2023 381 84 2024 392 84 2025 401 83 2026-2030 2,119 388 Total $ 4,050 $ 806 401(k) Plans PSEG sponsors two 401(k) plans, which are defined contribution retirement plans subject to the Employee Retirement Income Security Act (ERISA). Eligible represented employees of PSEG’s subsidiaries participate in the PSEG Employee Savings Plan (Savings Plan), while eligible non-represented employees of PSEG’s subsidiaries participate in the PSEG Thrift and Tax-Deferred Savings Plan (Thrift Plan). Eligible employees may contribute up to 50% of their annual eligible compensation to these plans, not to exceed the IRS maximums, including any catch-up contributions for those employees age 50 and above. PSEG matches 50% of such employee contributions up to 7% of pay for Savings Plan participants and up to 8% of pay for Thrift Plan participants. The amounts paid for employer matching contributions to the plans for PSEG, PSE&G and PSEG Power are detailed as follows: Thrift Plan and Savings Plan Years Ended December 31, 2020 2019 2018 Millions PSE&G $ 27 $ 25 $ 26 PSEG Power 10 10 10 Other 6 5 5 Total Employer Matching Contributions $ 43 $ 40 $ 41 Servco Pension and OPEB Servco sponsors a qualified pension plan and OPEB plan covering its employees who meet certain eligibility criteria. Under the OSA, employee benefit costs for these plans are funded by LIPA. See Note 5. Variable Interest Entity. These obligations, as well as the offsetting long-term receivable, are separately presented on the Consolidated Balance Sheet of PSEG. The following table provides a roll-forward of the changes in Servco’s benefit obligation and the fair value of its plan assets during the years ended December 31, 2020 and 2019. It also provides the funded status of the plans and the amounts recognized and amounts not recognized on the Consolidated Balance Sheets at the end of both years. Pension Benefits Other Benefits 2020 2019 2020 2019 Millions Change in Benefit Obligation Benefit Obligation at Beginning of Year (A) $ 453 $ 321 $ 626 $ 501 Service Cost 33 26 20 16 Interest Cost 14 14 20 22 Actuarial (Gain) Loss (B) 74 96 42 96 Gross Benefits Paid (5) (4) (9) (6) Plan Amendments — — — (3) Benefit Obligation at End of Year (A) $ 569 $ 453 $ 699 $ 626 Change in Plan Assets Fair Value of Assets at Beginning of Year $ 282 $ 212 $ — $ — Actual Return on Plan Assets 36 46 — — Employer Contributions 30 28 9 6 Gross Benefits Paid (5) (4) (9) (6) Fair Value of Assets at End of Year $ 343 $ 282 $ — $ — Funded Status Funded Status (Plan Assets less Benefit Obligation) $ (226) $ (171) $ (699) $ (626) Additional Amounts Recognized in the Consolidated Balance Sheets Accrued Pension Costs of Servco $ (226) $ (171) N/A N/A OPEB Costs of Servco N/A N/A (699) (626) Amounts Recognized (C) $ (226) $ (171) $ (699) $ (626) (A) Represents projected benefit obligation for pension benefits and the accumulated postretirement benefit obligation for other benefits. The vested benefit obligation is the actuarial present value of the vested benefits to which the employee is currently entitled but based on the employee’s expected date of separation or retirement. (B) For pension benefits, the net actuarial loss was primarily due to a decrease in the discount rate. For OPEB, the net actuarial loss in 2020 was primarily due to a decrease in the discount rate, partially offset by actuarial gains driven by lower than expected participation experience. The OPEB net actuarial loss in 2019 was primarily due to a decrease in the discount rate. (C) Amounts equal to the accrued pension and OPEB costs of Servco are offset in Long-Term Receivable of VIE on PSEG’s Consolidated Balance Sheets. 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. The pension-related revenues and costs for 2020, 2019 and 2018 were $30 million, $28 million and $40 million, respectively. Servco has contributed its entire planned contribution amount to its pension plan trusts during 2020. The OPEB-related revenues earned and costs incurred were $9 million, $6 million and $6 million in 2020, 2019 and 2018, respectively. The following assumptions were used to determine the benefit obligations of Servco: Pension Benefits Other Benefits 2020 2019 2018 2020 2019 2018 Weighted-Average Assumptions Used to Determine Benefit Obligations as of December 31 Discount Rate 2.98 % 3.52 % 4.60 % 3.08 % 3.60 % 4.67 % Rate of Compensation Increase 3.95 % 3.25 % 3.25 % 3.95 % 3.25 % 3.25 % Cash Balance Interest Crediting Rate 3.75 % 3.75 % 3.75 % N/A N/A N/A Assumed Health Care Cost Trend Rates as of December 31 Health Care Costs Immediate Rate 6.70 % 6.94 % 8.03 % Ultimate Rate 4.75 % 4.75 % 4.75 % Year Ultimate Rate Reached 2029 2029 2026 Plan Assets All the investments of Servco’s pension plans are held in a trust account by the Trustee and consist of an undivided interest in an investment account of the Servco Master Trust. The investments in the pension are measured at fair value within a hierarchy that prioritizes the inputs to fair value measurements into three levels. See Note 19. Fair Value Measurements for more information on fair value guidance. The following tables present information about Servco’s investments measured at fair value on a recurring basis as of December 31, 2020 and 2019, including the fair value measurements and the levels of inputs used in determining those fair values. Recurring Fair Value Measurements as of December 31, 2020 Quoted Market Prices Significant Other Significant Description Total (Level 1) (Level 2) (Level 3) Millions Cash Equivalents $ 1 $ 1 $ — $ — Commingled Equities (A) 259 — 259 — Commingled Bonds (A) 83 — 83 — Total $ 343 $ 1 $ 342 $ — Recurring Fair Value Measurements as of December 31, 2019 Quoted Market Prices Significant Other Significant Description Total (Level 1) (Level 2) (Level 3) Millions Commingled Equities (A) $ 202 $ — $ 202 $ — Commingled Bonds (A) 80 — 80 — Total $ 282 $ — $ 282 $ — (A) Investments in commingled equity and bond funds have a readily determinable fair value as they publish a daily NAV available to investors which is the basis for current transactions and contain certain redemption restrictions requiring advance notice of one to two days for withdrawals (Level 2). The following table provides the percentage of fair value of total plan assets for each major category of plan assets held for the qualified pension and OPEB plans of Servco as of the measurement date, December 31: As of December 31, Investments 2020 2019 Equity Securities 76 % 72 % Debt Securities 24 28 Total Percentage 100 % 100 % Servco utilizes forecasted returns, risk, and correlation of all asset classes in order to develop an efficient portfolio. The results from Servco’s latest asset/liability study indicated that a long-term target asset allocation of 60% equities, 15% real assets and 25% fixed income is consistent with the funds’ financial objectives. Certain investments in real assets are made through investing in equity securities and tracked as equities when reporting fair value; however, they are viewed by their asset class, real assets, in our target asset allocation. The expected long-term rate of return on plan assets was 7.6% for 2020 and will be the same for 2021. This expected return was determined based on the study discussed above, including a premium for active management. Plan Contributions Servco plans to contribute $37 million into its pension plan during 2021. 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 volatility in 2020 associated with the ongoing coronavirus pandemic is not expected to impact Servco’s pension contributions in 2021. Estimated Future Benefit Payments The following pension benefit and postretirement benefit payments are expected to be paid to Servco’s plan participants: Year Pension Other Benefits Millions 2021 $ 8 $ 9 2022 10 11 2023 12 13 2024 15 15 2025 17 17 2026-2030 123 111 Total $ 185 $ 176 Servco 401(k) Plans Servco sponsors two 401(k) plans, which are defined contribution retirement plans subject to ERISA. Eligible non-represented employees of Servco participate in the Long Island Electric Utility Servco LLC Incentive Thrift Plan I (Thrift Plan I), and eligible represented employees of Servco participate in the Long Island Electric Utility Servco LLC Incentive Thrift Plan II (Thrift Plan II). Participants in the plans may contribute up to 50% of their eligible compensation to these plans, not to exceed the IRS maximums, including any catch-up contributions for those employees age 50 and above. Servco does not provide an employer match or core contribution for employees in Thrift Plan II. For employees in Thrift Plan I, Servco matches 50% of such employee contributions up to 8% of eligible compensation and provides core contributions (based on years of service and age) to employees who do not participate in Servco’s Retirement Income Plan. The amounts expensed by Servco for employer matching contributions for the years ended December 31, 2020, 2019 and 2018 were $9 million, $8 million and $7 million, respectively, and pursuant to the OSA, Servco recognizes Operating Revenues for the reimbursement of these costs. |
Public Service Electric and Gas Company | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Pension, OPEB and Savings Plans | Pension, Other Postretirement Benefits (OPEB) and Savings Plans PSEG sponsors and Services administers 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’s qualified pension plans consist of two qualified defined benefit pension plans, Pension Plan and Pension Plan II. Each of the qualified pension plans include a Final Average Pay and two Cash Balance components. In addition, represented and non-represented employees are eligible for participation in PSEG’s two defined contribution plans. 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 its respective year-end Consolidated Balance Sheets. For underfunded plans, the liability is equal to the difference between the plan’s benefit obligation and the fair value of plan assets. For defined benefit pension plans, the benefit obligation is the projected benefit obligation. For OPEB plans, the benefit obligation is the accumulated postretirement benefit obligation. In addition, GAAP requires that the total unrecognized costs for defined benefit pension and OPEB plans be recorded as an after-tax charge to Accumulated Other Comprehensive Income (Loss), a separate component of Stockholders’ Equity. However, for PSE&G, because the amortization of the unrecognized costs is being collected from customers, the accumulated unrecognized costs are recorded as a Regulatory Asset. The unrecognized costs represent actuarial gains or losses and prior service costs which have not been expensed. For PSE&G, the Regulatory Asset is amortized and recorded as net periodic pension cost in the Consolidated Statements of Operations. For PSEG Power, the charge to Accumulated Other Comprehensive Income (Loss) is amortized and recorded as net periodic pension cost in the Consolidated Statements of Operations. In late June 2019, PSEG approved a plan amendment to its qualified pension plan, effective July 1, 2019. The amendment involved the spin-off of predominantly active participants from the existing qualified pension plan (Pension Plan) into a new qualified pension plan (Pension Plan II). Benefits offered to the plan participants remain unchanged. The existing plan’s pension benefit obligations, as well as the asset values, were remeasured as of July 1, 2019 as a result of the amendment. As of July 1, 2019, the weighted average discount rate for the combined plans decreased from 4.41% to 3.65% and the expected long-term rate of return on plan assets remained at 7.80%. Actuarial gains and losses associated with the Pension Plan will be amortized over the average remaining life expectancy of the inactive participants (as opposed to the average remaining service of active participants prior to the plan being split). Actuarial gains and losses associated with Pension Plan II will be amortized over the average remaining service of active participants. The combined remeasured qualified pension plans’ projected benefit obligation as of July 1, 2019 was $6.4 billion. Amounts for Servco are not included in any of the following pension and OPEB benefit information for PSEG and its affiliates but rather are separately disclosed later in this note. The following table provides a roll-forward of the changes in the benefit obligation and the fair value of plan assets during each of the two years in the periods ended December 31, 2020 and 2019. It also provides the funded status of the plans and the amounts recognized and amounts not recognized on the Consolidated Balance Sheets at the end of both years. Pension Benefits Other Benefits 2020 2019 2020 2019 Millions Change in Benefit Obligation Benefit Obligation at Beginning of Year (A) $ 6,892 $ 5,921 $ 1,285 $ 1,203 Service Cost 141 123 9 10 Interest Cost 192 218 34 45 Actuarial (Gain) Loss (B) 615 955 32 109 Gross Benefits Paid (333) (325) (50) (82) Plan Amendments — — (4) — Benefit Obligation at End of Year (A) $ 7,507 $ 6,892 $ 1,306 $ 1,285 Change in Plan Assets Fair Value of Assets at Beginning of Year $ 5,929 $ 5,120 $ 540 $ 488 Actual Return on Plan Assets 761 1,122 70 107 Employer Contributions 11 12 4 27 Gross Benefits Paid (333) (325) (50) (82) Fair Value of Assets at End of Year $ 6,368 $ 5,929 $ 564 $ 540 Funded Status Funded Status (Plan Assets less Benefit Obligation) $ (1,139) $ (963) $ (742) $ (745) Additional Amounts Recognized in the Consolidated Balance Sheets Current Accrued Benefit Cost $ (11) $ (11) $ (12) $ (11) Noncurrent Accrued Benefit Cost (1,128) (952) (730) (734) Amounts Recognized $ (1,139) $ (963) $ (742) $ (745) Additional Amounts Recognized in Accumulated Other Comprehensive Income (Loss), Regulated Assets and Deferred Assets (C) Prior Service Credit $ — $ (10) $ (310) $ (433) Net Actuarial Loss 2,354 2,150 364 409 Total $ 2,354 $ 2,140 $ 54 $ (24) (A) Represents projected benefit obligation for pension benefits and the accumulated postretirement benefit obligation for other benefits. The vested benefit obligation is the actuarial present value of the vested benefits to which the employee is currently entitled but based on the employee’s expected date of separation or retirement. (B) For pension benefits, the net actuarial loss was primarily due to a decrease in the discount rate. For OPEB, the net actuarial loss was primarily due to a decrease in the discount rate, partially offset by actuarial gains driven by lower than expected claims experience. (C) Includes $760 million ($545 million, after-tax) and $695 million ($499 million, after-tax) in Accumulated Other Comprehensive Loss related to Pension and OPEB as of December 31, 2020 and 2019, respectively. Also includes Regulatory Assets of $1,489 million and Deferred Assets of $159 million as of December 31, 2020 and Regulatory Assets of $1,284 million and Deferred Assets of $137 million as of December 31, 2019. The pension benefits table above provides information relating to the funded status of the qualified and nonqualified pension and OPEB plans on an aggregate basis. As of December 31, 2020, PSEG had funded approximately 85% of its projected pension benefit obligation. This percentage does not include $266 million of assets in the Rabbi Trust as of December 31, 2020 which were used partially to fund the nonqualified pension plans. As of December 31, 2020, the nonqualified pension plans included in the projected benefit obligation in the above table were $182 million. Accumulated Benefit Obligation The accumulated benefit obligation for all PSEG’s defined benefit pension plans was $7.3 billion as of December 31, 2020 and $6.7 billion as of December 31, 2019. The following table provides the components of net periodic benefit cost relating to all qualified and nonqualified pension and OPEB plans on an aggregate basis for PSEG, excluding Servco for the years ended December 31, 2020, 2019 and 2018. 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 Years Ended December 31, Other Benefits Years Ended December 31, 2020 2019 2018 2020 2019 2018 Millions Components of Net Periodic Benefit (Credits) Costs Service Cost (included in O&M Expense) $ 141 $ 123 $ 130 $ 9 $ 10 $ 18 Non-Service Components of Pension and OPEB (Credits) Costs Interest Cost 192 218 208 34 45 66 Expected Return on Plan Assets (443) (408) (441) (39) (36) (41) Amortization of Net Prior Service Credit (10) (18) (18) (128) (128) (1) Actuarial Loss 92 96 85 47 50 64 Non-Service Components of Pension and OPEB (Credits) Costs (169) (112) (166) (86) (69) 88 Total Benefit (Credits) Costs $ (28) $ 11 $ (36) $ (77) $ (59) $ 106 Pension costs and OPEB costs for PSEG, PSE&G and PSEG Power are detailed as follows: Pension Benefits Other Benefits 2020 2019 2018 2020 2019 2018 Millions PSE&G $ (27) $ — $ (31) $ (76) $ (62) $ 68 PSEG Power (5) 4 (9) — 3 32 Other 4 7 4 (1) — 6 Total Benefit (Credits) Costs $ (28) $ 11 $ (36) $ (77) $ (59) $ 106 The following table provides the pre-tax changes recognized in Accumulated Other Comprehensive Income (Loss), Regulatory Assets and Deferred Assets: Pension OPEB 2020 2019 2020 2019 Millions Net Actuarial (Gain) Loss in Current Period $ 296 $ 241 $ 2 $ 39 Amortization of Net Actuarial Gain (Loss) (92) (96) (47) (50) Prior Service Cost (Credit) in Current Period — — (5) — Amortization of Prior Service Credit 10 18 128 128 Total $ 214 $ 163 $ 78 $ 117 The following assumptions were used to determine the benefit obligations and net periodic benefit costs: Pension Benefits Other Benefits 2020 2019 2018 2020 2019 2018 Weighted-Average Assumptions Used to Determine Benefit Obligations as of December 31 Discount Rate 2.61 % 3.30 % 4.41 % 2.46 % 3.20 % 4.31 % Rate of Compensation Increase 4.40 % 3.90 % 3.90 % 4.40 % 3.90 % 3.90 % Cash Balance Interest Crediting Rate 6.00 % 6.00 % 6.00 % N/A N/A N/A Weighted-Average Assumptions Used to Determine Net Periodic Benefit Cost for Years Ended December 31 Discount Rate 3.30 % 4.41 % 3.73 % 3.20 % 4.31 % 3.76 % Service Cost Interest Rate 3.49 % 4.58 % 3.88 % 3.50 % 4.48 % 3.90 % Interest Cost Interest Rate 2.87 % 4.03 % 3.35 % 2.87 % 3.91 % 3.39 % Expected Return on Plan Assets 7.70 % 7.80 % 7.80 % 7.70 % 7.79 % 7.80 % Rate of Compensation Increase 3.90 % 3.90 % 3.90 % 3.90 % 3.90 % 3.90 % Cash Balance Interest Crediting Rate 6.00 % 6.00 % 6.00 % N/A N/A N/A Assumed Health Care Cost Trend Rates as of December 31 Health Care Costs Immediate Rate 6.37 % 6.68 % 7.28 % Ultimate Rate 4.75 % 4.75 % 4.75 % Year Ultimate Rate Reached 2029 2029 2026 Plan Assets The investments of pension and OPEB plans are held in a trust account by the Trustee and consist of an undivided interest in an investment account of the Master Trust. The investments in the pension and OPEB plans are measured at fair value within a hierarchy that prioritizes the inputs to fair value measurements into three levels. See Note 19. Fair Value Measurements for more information on fair value guidance. Use of the Master Trust permits the commingling of pension plan assets and OPEB plan assets for investment and administrative purposes. Although assets of the plans are commingled in the Master Trust, the Trustee maintains supporting records for the purpose of allocating the net gain or loss of the investment account to the respective participating plans. The net investment income of the investment assets is allocated by the Trustee to each participating plan based on the relationship of the interest of each plan to the total of the interests of the participating plans. As of December 31, 2020, the pension plan interest and OPEB plan interest in such assets of the Master Trust were approximately 92% and 8%, respectively. The following tables present information about the investments measured at fair value on a recurring basis as of December 31, 2020 and 2019, including the fair value measurements and the levels of inputs used in determining those fair values. Recurring Fair Value Measurements as of December 31, 2020 Quoted Market Prices Significant Other Significant Description Total (Level 1) (Level 2) (Level 3) Millions Cash Equivalents (A) $ 85 $ 85 $ — $ — Equity Securities Common Stock (B) 1,763 1,763 — — Commingled (C) 1,964 1,025 939 — Preferred Stock (B) 10 10 — — Other (D) 1 1 — — Debt Securities (E) U.S. Treasury 419 — 419 — Government—Other 258 — 258 — Corporate 823 — 823 — Commingled 4 4 — — Subtotal Fair Value $ 5,327 $ 2,888 $ 2,439 $ — Measured at net asset value practical expedient Commingled—Equities (F) 1,283 Real Estate Investment (G) 306 Private Equity (H) 5 Total Fair Value (I) $ 6,921 Recurring Fair Value Measurements as of December 31, 2019 Quoted Market Prices Significant Other Significant Description Total (Level 1) (Level 2) (Level 3) Millions Cash Equivalents (A) $ 104 $ 103 $ 1 $ — Equity Securities Common Stock (B) 1,487 1,487 — — Commingled (C) 1,707 1,042 665 — Preferred Stock (B) 19 19 — — Other (D) 3 3 — — Debt Securities (E) U.S. Treasury 544 — 544 — Government—Other 284 — 284 — Corporate 837 — 837 — Commingled 3 3 — — Other (Future Contracts) (3) (3) — — Subtotal Fair Value $ 4,985 $ 2,654 $ 2,331 $ — Measured at net asset value practical expedient Commingled—Equities (F) 1,154 Real Estate Investment (G) 302 Private Equity (H) 8 Total Fair Value (I) $ 6,449 (A) The Collective Investment Fund publishes a daily net asset value (NAV) which participants may use for daily redemptions without restrictions (Level 1). Certain temporary investments are valued using inputs such as time-to-maturity, coupon rate, quality rating and current yield (Level 2). (B) Common stocks and preferred stocks are measured using observable data in active markets and considered Level 1. (C) Commingled Funds that allow daily redemption at their daily published NAV without restrictions are classified as Level 1. Commingled Funds that publish daily NAV but with certain near-term redemption restrictions which prevent redemption at the published daily NAV are classified as Level 2. (D) Investment in a publicly traded limited partnership. (E) Debt securities include mainly investment grade corporate and municipal bonds, U.S. Treasury obligations and Federal Agency asset-backed securities with a wide range of maturities. These investments are valued using an evaluated pricing approach that varies by asset class and reflects observable market information such as the most recent exchange price or quoted bid for similar securities. Market-based standard inputs typically include benchmark yields, reported trades, broker/dealer quotes and issuer spreads or the most recent quotes for similar securities which are a Level 2 measure. (F) Certain commingled equity funds are not included in the fair value hierarchy as they are measured at fair value using the NAV per share (or its equivalent) practical expedient. These funds do not meet the definition of readily determinable fair value due to the frequency of publishing NAV (monthly). The objectives of these funds are mainly tracking the S&P Index or achieving long-term growth through investment in foreign equity securities and the Morgan Stanley Capital International Index. (G) The unlisted real estate fund invests in office, apartment, industrial and retail space. The fund is valued using the NAV per unit of funds. The investment value of the real estate properties is determined on a quarterly basis by independent market appraisers engaged by the board of directors of the fund. The ability to redeem funds is subject to the availability of cash arising from net investment income, allocations and the sale of investments in the normal course of business. The fund’s NAV is published quarterly. In addition, redemptions require one quarter advance notice prior to redemption and are fulfilled quarterly. The fund, therefore, does not meet the definition of readily determinable fair value. The purpose of the fund is to acquire, own, hold for investment and ultimately dispose of investments in real estate and real estate-related assets with the intention of achieving current income, capital appreciation or both. (H) Private equity investments primarily include various limited partnerships that invest in either operating companies through acquisitions or developing a portfolio of non-U.S. distressed investments to maximize total return on capital. These investments are valued at NAV (or its equivalent) on a quarterly basis and have significant redemption restrictions preventing redemption until fund liquidation and limited ability to sell these investments. Fund liquidation is not expected to occur for several more years. These investments are not included in the fair value hierarchy in accordance with the guidance on NAV practical expedient. (I) Excludes net receivables of $10 million and $15 million as of December 31, 2020 and 2019, respectively, which consist of interest, dividends and receivables and payables related to pending securities sales and purchases. In addition, the table excludes cash and foreign currency of $1 million and $5 million as of December 31, 2020 and 2019, respectively. The following table provides the percentage of fair value of total plan assets for each major category of plan assets held for the qualified pension and OPEB plans as of the measurement date, December 31: As of December 31, Investments 2020 2019 Equity Securities 72 % 68 % Debt Securities 22 26 Other Investments 6 6 Total Percentage 100 % 100 % PSEG utilizes forecasted returns, risk, and correlation of all asset classes in order to develop an efficient portfolio. PSEG’s latest asset/liability study indicates that a long-term target asset allocation of 59% equities, 18% real assets and 23% fixed income is consistent with the funds’ financial objectives. Certain investments in real assets are made through investing in equity securities and tracked as equities when reporting fair value; however, they are viewed by their asset class, real assets, in our target asset allocation. Derivative financial instruments are used by the plans’ investment managers primarily to adjust the fixed income duration of the portfolio and hedge the currency risk component of foreign investments. The expected long-term rate of return on plan assets was 7.7% for 2020 and will be the same for 2021. This expected return was determined based on the study discussed above, including a premium for active management and considered the plans’ historical annualized rate of return since inception. Plan Contributions PSEG does not plan to contribute to its pension and OPEB plans in 2021. 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 volatility in 2020 associated with the ongoing coronavirus pandemic is not expected to impact PSEG’s pension contributions in 2021. Estimated Future Benefit Payments The following pension benefit and postretirement benefit payments are expected to be paid to plan participants. Year Pension Other Benefits Millions 2021 $ 389 $ 83 2022 368 84 2023 381 84 2024 392 84 2025 401 83 2026-2030 2,119 388 Total $ 4,050 $ 806 401(k) Plans PSEG sponsors two 401(k) plans, which are defined contribution retirement plans subject to the Employee Retirement Income Security Act (ERISA). Eligible represented employees of PSEG’s subsidiaries participate in the PSEG Employee Savings Plan (Savings Plan), while eligible non-represented employees of PSEG’s subsidiaries participate in the PSEG Thrift and Tax-Deferred Savings Plan (Thrift Plan). Eligible employees may contribute up to 50% of their annual eligible compensation to these plans, not to exceed the IRS maximums, including any catch-up contributions for those employees age 50 and above. PSEG matches 50% of such employee contributions up to 7% of pay for Savings Plan participants and up to 8% of pay for Thrift Plan participants. The amounts paid for employer matching contributions to the plans for PSEG, PSE&G and PSEG Power are detailed as follows: Thrift Plan and Savings Plan Years Ended December 31, 2020 2019 2018 Millions PSE&G $ 27 $ 25 $ 26 PSEG Power 10 10 10 Other 6 5 5 Total Employer Matching Contributions $ 43 $ 40 $ 41 Servco Pension and OPEB Servco sponsors a qualified pension plan and OPEB plan covering its employees who meet certain eligibility criteria. Under the OSA, employee benefit costs for these plans are funded by LIPA. See Note 5. Variable Interest Entity. These obligations, as well as the offsetting long-term receivable, are separately presented on the Consolidated Balance Sheet of PSEG. The following table provides a roll-forward of the changes in Servco’s benefit obligation and the fair value of its plan assets during the years ended December 31, 2020 and 2019. It also provides the funded status of the plans and the amounts recognized and amounts not recognized on the Consolidated Balance Sheets at the end of both years. Pension Benefits Other Benefits 2020 2019 2020 2019 Millions Change in Benefit Obligation Benefit Obligation at Beginning of Year (A) $ 453 $ 321 $ 626 $ 501 Service Cost 33 26 20 16 Interest Cost 14 14 20 22 Actuarial (Gain) Loss (B) 74 96 42 96 Gross Benefits Paid (5) (4) (9) (6) Plan Amendments — — — (3) Benefit Obligation at End of Year (A) $ 569 $ 453 $ 699 $ 626 Change in Plan Assets Fair Value of Assets at Beginning of Year $ 282 $ 212 $ — $ — Actual Return on Plan Assets 36 46 — — Employer Contributions 30 28 9 6 Gross Benefits Paid (5) (4) (9) (6) Fair Value of Assets at End of Year $ 343 $ 282 $ — $ — Funded Status Funded Status (Plan Assets less Benefit Obligation) $ (226) $ (171) $ (699) $ (626) Additional Amounts Recognized in the Consolidated Balance Sheets Accrued Pension Costs of Servco $ (226) $ (171) N/A N/A OPEB Costs of Servco N/A N/A (699) (626) Amounts Recognized (C) $ (226) $ (171) $ (699) $ (626) (A) Represents projected benefit obligation for pension benefits and the accumulated postretirement benefit obligation for other benefits. The vested benefit obligation is the actuarial present value of the vested benefits to which the employee is currently entitled but based on the employee’s expected date of separation or retirement. (B) For pension benefits, the net actuarial loss was primarily due to a decrease in the discount rate. For OPEB, the net actuarial loss in 2020 was primarily due to a decrease in the discount rate, partially offset by actuarial gains driven by lower than expected participation experience. The OPEB net actuarial loss in 2019 was primarily due to a decrease in the discount rate. (C) Amounts equal to the accrued pension and OPEB costs of Servco are offset in Long-Term Receivable of VIE on PSEG’s Consolidated Balance Sheets. 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. The pension-related revenues and costs for 2020, 2019 and 2018 were $30 million, $28 million and $40 million, respectively. Servco has contributed its entire planned contribution amount to its pension plan trusts during 2020. The OPEB-related revenues earned and costs incurred were $9 million, $6 million and $6 million in 2020, 2019 and 2018, respectively. The following assumptions were used to determine the benefit obligations of Servco: Pension Benefits Other Benefits 2020 2019 2018 2020 2019 2018 Weighted-Average Assumptions Used to Determine Benefit Obligations as of December 31 Discount Rate 2.98 % 3.52 % 4.60 % 3.08 % 3.60 % 4.67 % Rate of Compensation Increase 3.95 % 3.25 % 3.25 % 3.95 % 3.25 % 3.25 % Cash Balance Interest Crediting Rate 3.75 % 3.75 % 3.75 % N/A N/A N/A Assumed Health Care Cost Trend Rates as of December 31 Health Care Costs Immediate Rate 6.70 % 6.94 % 8.03 % Ultimate Rate 4.75 % 4.75 % 4.75 % Year Ultimate Rate Reached 2029 2029 2026 Plan Assets All the investments of Servco’s pension plans are held in a trust account by the Trustee and consist of an undivided interest in an investment account of the Servco Master Trust. The investments in the pension are measured at fair value within a hierarchy that prioritizes the inputs to fair value measurements into three levels. See Note 19. Fair Value Measurements for more information on fair value guidance. The following tables present information about Servco’s investments measured at fair value on a recurring basis as of December 31, 2020 and 2019, including the fair value measurements and the levels of inputs used in determining those fair values. Recurring Fair Value Measurements as of December 31, 2020 Quoted Market Prices Significant Other Significant Description Total (Level 1) (Level 2) (Level 3) Millions Cash Equivalents $ 1 $ 1 $ — $ — Commingled Equities (A) 259 — 259 — Commingled Bonds (A) 83 — 83 — Total $ 343 $ 1 $ 342 $ — Recurring Fair Value Measurements as of December 31, 2019 Quoted Market Prices Significant Other Significant Description Total (Level 1) (Level 2) (Level 3) Millions Commingled Equities (A) $ 202 $ — $ 202 $ — Commingled Bonds (A) 80 — 80 — Total $ 282 $ — $ 282 $ — (A) Investments in commingled equity and bond funds have a readily determinable fair value as they publish a daily NAV available to investors which is the basis for current transactions and contain certain redemption restrictions requiring advance notice of one to two days for withdrawals (Level 2). The following table provides the percentage of fair value of total plan assets for each major category of plan assets held for the qualified pension and OPEB plans of Servco as of the measurement date, December 31: As of December 31, Investments 2020 2019 Equity Securities 76 % 72 % Debt Securities 24 28 Total Percentage 100 % 100 % Servco utilizes forecasted returns, risk, and correlation of all asset classes in order to develop an efficient portfolio. The results from Servco’s latest asset/liability study indicated that a long-term target asset allocation of 60% equities, 15% real assets and 25% fixed income is consistent with the funds’ financial objectives. Certain investments in real assets are made through investing in equity securities and tracked as equities when reporting fair value; however, they are viewed by their asset class, real assets, in our target asset allocation. The expected long-term rate of return on plan assets was 7.6% for 2020 and will be the same for 2021. This expected return was determined based on the study discussed above, including a premium for active management. Plan Contributions Servco plans to contribute $37 million into its pension plan during 2021. 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 volatility in 2020 associated with the ongoing coronavirus pandemic is not expected to impact Servco’s pension contributions in 2021. Estimated Future Benefit Payments The following pension benefit and postretirement benefit payments are expected to be paid to Servco’s plan participants: Year Pension Other Benefits Millions 2021 $ 8 $ 9 2022 10 11 2023 12 13 2024 15 15 2025 17 17 2026-2030 123 111 Total $ 185 $ 176 Servco 401(k) Plans Servco sponsors two 401(k) plans, which are defined contribution retirement plans subject to ERISA. Eligible non-represented employees of Servco participate in the Long Island Electric Utility Servco LLC Incentive Thrift Plan I (Thrift Plan I), and eligible represented employees of Servco participate in the Long Island Electric Utility Servco LLC Incentive Thrift Plan II (Thrift Plan II). Participants in the plans may contribute up to 50% of their eligible compensation to these plans, not to exceed the IRS maximums, including any catch-up contributions for those employees age 50 and above. Servco does not provide an employer match or core contribution for employees in Thrift Plan II. For employees in Thrift Plan I, Servco matches 50% of such employee contributions up to 8% of eligible compensation and provides core contributions (based on years of service and age) to employees who do not participate in Servco’s Retirement Income Plan. The amounts expensed by Servco for employer matching contributions for the years ended December 31, 2020, 2019 and 2018 were $9 million, $8 million and $7 million, respectively, and pursuant to the OSA, Servco recognizes Operating Revenues for the reimbursement of these costs. |
PSEG Power LLC | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Pension, OPEB and Savings Plans | Pension, Other Postretirement Benefits (OPEB) and Savings Plans PSEG sponsors and Services administers 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’s qualified pension plans consist of two qualified defined benefit pension plans, Pension Plan and Pension Plan II. Each of the qualified pension plans include a Final Average Pay and two Cash Balance components. In addition, represented and non-represented employees are eligible for participation in PSEG’s two defined contribution plans. 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 its respective year-end Consolidated Balance Sheets. For underfunded plans, the liability is equal to the difference between the plan’s benefit obligation and the fair value of plan assets. For defined benefit pension plans, the benefit obligation is the projected benefit obligation. For OPEB plans, the benefit obligation is the accumulated postretirement benefit obligation. In addition, GAAP requires that the total unrecognized costs for defined benefit pension and OPEB plans be recorded as an after-tax charge to Accumulated Other Comprehensive Income (Loss), a separate component of Stockholders’ Equity. However, for PSE&G, because the amortization of the unrecognized costs is being collected from customers, the accumulated unrecognized costs are recorded as a Regulatory Asset. The unrecognized costs represent actuarial gains or losses and prior service costs which have not been expensed. For PSE&G, the Regulatory Asset is amortized and recorded as net periodic pension cost in the Consolidated Statements of Operations. For PSEG Power, the charge to Accumulated Other Comprehensive Income (Loss) is amortized and recorded as net periodic pension cost in the Consolidated Statements of Operations. In late June 2019, PSEG approved a plan amendment to its qualified pension plan, effective July 1, 2019. The amendment involved the spin-off of predominantly active participants from the existing qualified pension plan (Pension Plan) into a new qualified pension plan (Pension Plan II). Benefits offered to the plan participants remain unchanged. The existing plan’s pension benefit obligations, as well as the asset values, were remeasured as of July 1, 2019 as a result of the amendment. As of July 1, 2019, the weighted average discount rate for the combined plans decreased from 4.41% to 3.65% and the expected long-term rate of return on plan assets remained at 7.80%. Actuarial gains and losses associated with the Pension Plan will be amortized over the average remaining life expectancy of the inactive participants (as opposed to the average remaining service of active participants prior to the plan being split). Actuarial gains and losses associated with Pension Plan II will be amortized over the average remaining service of active participants. The combined remeasured qualified pension plans’ projected benefit obligation as of July 1, 2019 was $6.4 billion. Amounts for Servco are not included in any of the following pension and OPEB benefit information for PSEG and its affiliates but rather are separately disclosed later in this note. The following table provides a roll-forward of the changes in the benefit obligation and the fair value of plan assets during each of the two years in the periods ended December 31, 2020 and 2019. It also provides the funded status of the plans and the amounts recognized and amounts not recognized on the Consolidated Balance Sheets at the end of both years. Pension Benefits Other Benefits 2020 2019 2020 2019 Millions Change in Benefit Obligation Benefit Obligation at Beginning of Year (A) $ 6,892 $ 5,921 $ 1,285 $ 1,203 Service Cost 141 123 9 10 Interest Cost 192 218 34 45 Actuarial (Gain) Loss (B) 615 955 32 109 Gross Benefits Paid (333) (325) (50) (82) Plan Amendments — — (4) — Benefit Obligation at End of Year (A) $ 7,507 $ 6,892 $ 1,306 $ 1,285 Change in Plan Assets Fair Value of Assets at Beginning of Year $ 5,929 $ 5,120 $ 540 $ 488 Actual Return on Plan Assets 761 1,122 70 107 Employer Contributions 11 12 4 27 Gross Benefits Paid (333) (325) (50) (82) Fair Value of Assets at End of Year $ 6,368 $ 5,929 $ 564 $ 540 Funded Status Funded Status (Plan Assets less Benefit Obligation) $ (1,139) $ (963) $ (742) $ (745) Additional Amounts Recognized in the Consolidated Balance Sheets Current Accrued Benefit Cost $ (11) $ (11) $ (12) $ (11) Noncurrent Accrued Benefit Cost (1,128) (952) (730) (734) Amounts Recognized $ (1,139) $ (963) $ (742) $ (745) Additional Amounts Recognized in Accumulated Other Comprehensive Income (Loss), Regulated Assets and Deferred Assets (C) Prior Service Credit $ — $ (10) $ (310) $ (433) Net Actuarial Loss 2,354 2,150 364 409 Total $ 2,354 $ 2,140 $ 54 $ (24) (A) Represents projected benefit obligation for pension benefits and the accumulated postretirement benefit obligation for other benefits. The vested benefit obligation is the actuarial present value of the vested benefits to which the employee is currently entitled but based on the employee’s expected date of separation or retirement. (B) For pension benefits, the net actuarial loss was primarily due to a decrease in the discount rate. For OPEB, the net actuarial loss was primarily due to a decrease in the discount rate, partially offset by actuarial gains driven by lower than expected claims experience. (C) Includes $760 million ($545 million, after-tax) and $695 million ($499 million, after-tax) in Accumulated Other Comprehensive Loss related to Pension and OPEB as of December 31, 2020 and 2019, respectively. Also includes Regulatory Assets of $1,489 million and Deferred Assets of $159 million as of December 31, 2020 and Regulatory Assets of $1,284 million and Deferred Assets of $137 million as of December 31, 2019. The pension benefits table above provides information relating to the funded status of the qualified and nonqualified pension and OPEB plans on an aggregate basis. As of December 31, 2020, PSEG had funded approximately 85% of its projected pension benefit obligation. This percentage does not include $266 million of assets in the Rabbi Trust as of December 31, 2020 which were used partially to fund the nonqualified pension plans. As of December 31, 2020, the nonqualified pension plans included in the projected benefit obligation in the above table were $182 million. Accumulated Benefit Obligation The accumulated benefit obligation for all PSEG’s defined benefit pension plans was $7.3 billion as of December 31, 2020 and $6.7 billion as of December 31, 2019. The following table provides the components of net periodic benefit cost relating to all qualified and nonqualified pension and OPEB plans on an aggregate basis for PSEG, excluding Servco for the years ended December 31, 2020, 2019 and 2018. 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 Years Ended December 31, Other Benefits Years Ended December 31, 2020 2019 2018 2020 2019 2018 Millions Components of Net Periodic Benefit (Credits) Costs Service Cost (included in O&M Expense) $ 141 $ 123 $ 130 $ 9 $ 10 $ 18 Non-Service Components of Pension and OPEB (Credits) Costs Interest Cost 192 218 208 34 45 66 Expected Return on Plan Assets (443) (408) (441) (39) (36) (41) Amortization of Net Prior Service Credit (10) (18) (18) (128) (128) (1) Actuarial Loss 92 96 85 47 50 64 Non-Service Components of Pension and OPEB (Credits) Costs (169) (112) (166) (86) (69) 88 Total Benefit (Credits) Costs $ (28) $ 11 $ (36) $ (77) $ (59) $ 106 Pension costs and OPEB costs for PSEG, PSE&G and PSEG Power are detailed as follows: Pension Benefits Other Benefits 2020 2019 2018 2020 2019 2018 Millions PSE&G $ (27) $ — $ (31) $ (76) $ (62) $ 68 PSEG Power (5) 4 (9) — 3 32 Other 4 7 4 (1) — 6 Total Benefit (Credits) Costs $ (28) $ 11 $ (36) $ (77) $ (59) $ 106 The following table provides the pre-tax changes recognized in Accumulated Other Comprehensive Income (Loss), Regulatory Assets and Deferred Assets: Pension OPEB 2020 2019 2020 2019 Millions Net Actuarial (Gain) Loss in Current Period $ 296 $ 241 $ 2 $ 39 Amortization of Net Actuarial Gain (Loss) (92) (96) (47) (50) Prior Service Cost (Credit) in Current Period — — (5) — Amortization of Prior Service Credit 10 18 128 128 Total $ 214 $ 163 $ 78 $ 117 The following assumptions were used to determine the benefit obligations and net periodic benefit costs: Pension Benefits Other Benefits 2020 2019 2018 2020 2019 2018 Weighted-Average Assumptions Used to Determine Benefit Obligations as of December 31 Discount Rate 2.61 % 3.30 % 4.41 % 2.46 % 3.20 % 4.31 % Rate of Compensation Increase 4.40 % 3.90 % 3.90 % 4.40 % 3.90 % 3.90 % Cash Balance Interest Crediting Rate 6.00 % 6.00 % 6.00 % N/A N/A N/A Weighted-Average Assumptions Used to Determine Net Periodic Benefit Cost for Years Ended December 31 Discount Rate 3.30 % 4.41 % 3.73 % 3.20 % 4.31 % 3.76 % Service Cost Interest Rate 3.49 % 4.58 % 3.88 % 3.50 % 4.48 % 3.90 % Interest Cost Interest Rate 2.87 % 4.03 % 3.35 % 2.87 % 3.91 % 3.39 % Expected Return on Plan Assets 7.70 % 7.80 % 7.80 % 7.70 % 7.79 % 7.80 % Rate of Compensation Increase 3.90 % 3.90 % 3.90 % 3.90 % 3.90 % 3.90 % Cash Balance Interest Crediting Rate 6.00 % 6.00 % 6.00 % N/A N/A N/A Assumed Health Care Cost Trend Rates as of December 31 Health Care Costs Immediate Rate 6.37 % 6.68 % 7.28 % Ultimate Rate 4.75 % 4.75 % 4.75 % Year Ultimate Rate Reached 2029 2029 2026 Plan Assets The investments of pension and OPEB plans are held in a trust account by the Trustee and consist of an undivided interest in an investment account of the Master Trust. The investments in the pension and OPEB plans are measured at fair value within a hierarchy that prioritizes the inputs to fair value measurements into three levels. See Note 19. Fair Value Measurements for more information on fair value guidance. Use of the Master Trust permits the commingling of pension plan assets and OPEB plan assets for investment and administrative purposes. Although assets of the plans are commingled in the Master Trust, the Trustee maintains supporting records for the purpose of allocating the net gain or loss of the investment account to the respective participating plans. The net investment income of the investment assets is allocated by the Trustee to each participating plan based on the relationship of the interest of each plan to the total of the interests of the participating plans. As of December 31, 2020, the pension plan interest and OPEB plan interest in such assets of the Master Trust were approximately 92% and 8%, respectively. The following tables present information about the investments measured at fair value on a recurring basis as of December 31, 2020 and 2019, including the fair value measurements and the levels of inputs used in determining those fair values. Recurring Fair Value Measurements as of December 31, 2020 Quoted Market Prices Significant Other Significant Description Total (Level 1) (Level 2) (Level 3) Millions Cash Equivalents (A) $ 85 $ 85 $ — $ — Equity Securities Common Stock (B) 1,763 1,763 — — Commingled (C) 1,964 1,025 939 — Preferred Stock (B) 10 10 — — Other (D) 1 1 — — Debt Securities (E) U.S. Treasury 419 — 419 — Government—Other 258 — 258 — Corporate 823 — 823 — Commingled 4 4 — — Subtotal Fair Value $ 5,327 $ 2,888 $ 2,439 $ — Measured at net asset value practical expedient Commingled—Equities (F) 1,283 Real Estate Investment (G) 306 Private Equity (H) 5 Total Fair Value (I) $ 6,921 Recurring Fair Value Measurements as of December 31, 2019 Quoted Market Prices Significant Other Significant Description Total (Level 1) (Level 2) (Level 3) Millions Cash Equivalents (A) $ 104 $ 103 $ 1 $ — Equity Securities Common Stock (B) 1,487 1,487 — — Commingled (C) 1,707 1,042 665 — Preferred Stock (B) 19 19 — — Other (D) 3 3 — — Debt Securities (E) U.S. Treasury 544 — 544 — Government—Other 284 — 284 — Corporate 837 — 837 — Commingled 3 3 — — Other (Future Contracts) (3) (3) — — Subtotal Fair Value $ 4,985 $ 2,654 $ 2,331 $ — Measured at net asset value practical expedient Commingled—Equities (F) 1,154 Real Estate Investment (G) 302 Private Equity (H) 8 Total Fair Value (I) $ 6,449 (A) The Collective Investment Fund publishes a daily net asset value (NAV) which participants may use for daily redemptions without restrictions (Level 1). Certain temporary investments are valued using inputs such as time-to-maturity, coupon rate, quality rating and current yield (Level 2). (B) Common stocks and preferred stocks are measured using observable data in active markets and considered Level 1. (C) Commingled Funds that allow daily redemption at their daily published NAV without restrictions are classified as Level 1. Commingled Funds that publish daily NAV but with certain near-term redemption restrictions which prevent redemption at the published daily NAV are classified as Level 2. (D) Investment in a publicly traded limited partnership. (E) Debt securities include mainly investment grade corporate and municipal bonds, U.S. Treasury obligations and Federal Agency asset-backed securities with a wide range of maturities. These investments are valued using an evaluated pricing approach that varies by asset class and reflects observable market information such as the most recent exchange price or quoted bid for similar securities. Market-based standard inputs typically include benchmark yields, reported trades, broker/dealer quotes and issuer spreads or the most recent quotes for similar securities which are a Level 2 measure. (F) Certain commingled equity funds are not included in the fair value hierarchy as they are measured at fair value using the NAV per share (or its equivalent) practical expedient. These funds do not meet the definition of readily determinable fair value due to the frequency of publishing NAV (monthly). The objectives of these funds are mainly tracking the S&P Index or achieving long-term growth through investment in foreign equity securities and the Morgan Stanley Capital International Index. (G) The unlisted real estate fund invests in office, apartment, industrial and retail space. The fund is valued using the NAV per unit of funds. The investment value of the real estate properties is determined on a quarterly basis by independent market appraisers engaged by the board of directors of the fund. The ability to redeem funds is subject to the availability of cash arising from net investment income, allocations and the sale of investments in the normal course of business. The fund’s NAV is published quarterly. In addition, redemptions require one quarter advance notice prior to redemption and are fulfilled quarterly. The fund, therefore, does not meet the definition of readily determinable fair value. The purpose of the fund is to acquire, own, hold for investment and ultimately dispose of investments in real estate and real estate-related assets with the intention of achieving current income, capital appreciation or both. (H) Private equity investments primarily include various limited partnerships that invest in either operating companies through acquisitions or developing a portfolio of non-U.S. distressed investments to maximize total return on capital. These investments are valued at NAV (or its equivalent) on a quarterly basis and have significant redemption restrictions preventing redemption until fund liquidation and limited ability to sell these investments. Fund liquidation is not expected to occur for several more years. These investments are not included in the fair value hierarchy in accordance with the guidance on NAV practical expedient. (I) Excludes net receivables of $10 million and $15 million as of December 31, 2020 and 2019, respectively, which consist of interest, dividends and receivables and payables related to pending securities sales and purchases. In addition, the table excludes cash and foreign currency of $1 million and $5 million as of December 31, 2020 and 2019, respectively. The following table provides the percentage of fair value of total plan assets for each major category of plan assets held for the qualified pension and OPEB plans as of the measurement date, December 31: As of December 31, Investments 2020 2019 Equity Securities 72 % 68 % Debt Securities 22 26 Other Investments 6 6 Total Percentage 100 % 100 % PSEG utilizes forecasted returns, risk, and correlation of all asset classes in order to develop an efficient portfolio. PSEG’s latest asset/liability study indicates that a long-term target asset allocation of 59% equities, 18% real assets and 23% fixed income is consistent with the funds’ financial objectives. Certain investments in real assets are made through investing in equity securities and tracked as equities when reporting fair value; however, they are viewed by their asset class, real assets, in our target asset allocation. Derivative financial instruments are used by the plans’ investment managers primarily to adjust the fixed income duration of the portfolio and hedge the currency risk component of foreign investments. The expected long-term rate of return on plan assets was 7.7% for 2020 and will be the same for 2021. This expected return was determined based on the study discussed above, including a premium for active management and considered the plans’ historical annualized rate of return since inception. Plan Contributions PSEG does not plan to contribute to its pension and OPEB plans in 2021. 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 volatility in 2020 associated with the ongoing coronavirus pandemic is not expected to impact PSEG’s pension contributions in 2021. Estimated Future Benefit Payments The following pension benefit and postretirement benefit payments are expected to be paid to plan participants. Year Pension Other Benefits Millions 2021 $ 389 $ 83 2022 368 84 2023 381 84 2024 392 84 2025 401 83 2026-2030 2,119 388 Total $ 4,050 $ 806 401(k) Plans PSEG sponsors two 401(k) plans, which are defined contribution retirement plans subject to the Employee Retirement Income Security Act (ERISA). Eligible represented employees of PSEG’s subsidiaries participate in the PSEG Employee Savings Plan (Savings Plan), while eligible non-represented employees of PSEG’s subsidiaries participate in the PSEG Thrift and Tax-Deferred Savings Plan (Thrift Plan). Eligible employees may contribute up to 50% of their annual eligible compensation to these plans, not to exceed the IRS maximums, including any catch-up contributions for those employees age 50 and above. PSEG matches 50% of such employee contributions up to 7% of pay for Savings Plan participants and up to 8% of pay for Thrift Plan participants. The amounts paid for employer matching contributions to the plans for PSEG, PSE&G and PSEG Power are detailed as follows: Thrift Plan and Savings Plan Years Ended December 31, 2020 2019 2018 Millions PSE&G $ 27 $ 25 $ 26 PSEG Power 10 10 10 Other 6 5 5 Total Employer Matching Contributions $ 43 $ 40 $ 41 Servco Pension and OPEB Servco sponsors a qualified pension plan and OPEB plan covering its employees who meet certain eligibility criteria. Under the OSA, employee benefit costs for these plans are funded by LIPA. See Note 5. Variable Interest Entity. These obligations, as well as the offsetting long-term receivable, are separately presented on the Consolidated Balance Sheet of PSEG. The following table provides a roll-forward of the changes in Servco’s benefit obligation and the fair value of its plan assets during the years ended December 31, 2020 and 2019. It also provides the funded status of the plans and the amounts recognized and amounts not recognized on the Consolidated Balance Sheets at the end of both years. Pension Benefits Other Benefits 2020 2019 2020 2019 Millions Change in Benefit Obligation Benefit Obligation at Beginning of Year (A) $ 453 $ 321 $ 626 $ 501 Service Cost 33 26 20 16 Interest Cost 14 14 20 22 Actuarial (Gain) Loss (B) 74 96 42 96 Gross Benefits Paid (5) (4) (9) (6) Plan Amendments — — — (3) Benefit Obligation at End of Year (A) $ 569 $ 453 $ 699 $ 626 Change in Plan Assets Fair Value of Assets at Beginning of Year $ 282 $ 212 $ — $ — Actual Return on Plan Assets 36 46 — — Employer Contributions 30 28 9 6 Gross Benefits Paid (5) (4) (9) (6) Fair Value of Assets at End of Year $ 343 $ 282 $ — $ — Funded Status Funded Status (Plan Assets less Benefit Obligation) $ (226) $ (171) $ (699) $ (626) Additional Amounts Recognized in the Consolidated Balance Sheets Accrued Pension Costs of Servco $ (226) $ (171) N/A N/A OPEB Costs of Servco N/A N/A (699) (626) Amounts Recognized (C) $ (226) $ (171) $ (699) $ (626) (A) Represents projected benefit obligation for pension benefits and the accumulated postretirement benefit obligation for other benefits. The vested benefit obligation is the actuarial present value of the vested benefits to which the employee is currently entitled but based on the employee’s expected date of separation or retirement. (B) For pension benefits, the net actuarial loss was primarily due to a decrease in the discount rate. For OPEB, the net actuarial loss in 2020 was primarily due to a decrease in the discount rate, partially offset by actuarial gains driven by lower than expected participation experience. The OPEB net actuarial loss in 2019 was primarily due to a decrease in the discount rate. (C) Amounts equal to the accrued pension and OPEB costs of Servco are offset in Long-Term Receivable of VIE on PSEG’s Consolidated Balance Sheets. 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. The pension-related revenues and costs for 2020, 2019 and 2018 were $30 million, $28 million and $40 million, respectively. Servco has contributed its entire planned contribution amount to its pension plan trusts during 2020. The OPEB-related revenues earned and costs incurred were $9 million, $6 million and $6 million in 2020, 2019 and 2018, respectively. The following assumptions were used to determine the benefit obligations of Servco: Pension Benefits Other Benefits 2020 2019 2018 2020 2019 2018 Weighted-Average Assumptions Used to Determine Benefit Obligations as of December 31 Discount Rate 2.98 % 3.52 % 4.60 % 3.08 % 3.60 % 4.67 % Rate of Compensation Increase 3.95 % 3.25 % 3.25 % 3.95 % 3.25 % 3.25 % Cash Balance Interest Crediting Rate 3.75 % 3.75 % 3.75 % N/A N/A N/A Assumed Health Care Cost Trend Rates as of December 31 Health Care Costs Immediate Rate 6.70 % 6.94 % 8.03 % Ultimate Rate 4.75 % 4.75 % 4.75 % Year Ultimate Rate Reached 2029 2029 2026 Plan Assets All the investments of Servco’s pension plans are held in a trust account by the Trustee and consist of an undivided interest in an investment account of the Servco Master Trust. The investments in the pension are measured at fair value within a hierarchy that prioritizes the inputs to fair value measurements into three levels. See Note 19. Fair Value Measurements for more information on fair value guidance. The following tables present information about Servco’s investments measured at fair value on a recurring basis as of December 31, 2020 and 2019, including the fair value measurements and the levels of inputs used in determining those fair values. Recurring Fair Value Measurements as of December 31, 2020 Quoted Market Prices Significant Other Significant Description Total (Level 1) (Level 2) (Level 3) Millions Cash Equivalents $ 1 $ 1 $ — $ — Commingled Equities (A) 259 — 259 — Commingled Bonds (A) 83 — 83 — Total $ 343 $ 1 $ 342 $ — Recurring Fair Value Measurements as of December 31, 2019 Quoted Market Prices Significant Other Significant Description Total (Level 1) (Level 2) (Level 3) Millions Commingled Equities (A) $ 202 $ — $ 202 $ — Commingled Bonds (A) 80 — 80 — Total $ 282 $ — $ 282 $ — (A) Investments in commingled equity and bond funds have a readily determinable fair value as they publish a daily NAV available to investors which is the basis for current transactions and contain certain redemption restrictions requiring advance notice of one to two days for withdrawals (Level 2). The following table provides the percentage of fair value of total plan assets for each major category of plan assets held for the qualified pension and OPEB plans of Servco as of the measurement date, December 31: As of December 31, Investments 2020 2019 Equity Securities 76 % 72 % Debt Securities 24 28 Total Percentage 100 % 100 % Servco utilizes forecasted returns, risk, and correlation of all asset classes in order to develop an efficient portfolio. The results from Servco’s latest asset/liability study indicated that a long-term target asset allocation of 60% equities, 15% real assets and 25% fixed income is consistent with the funds’ financial objectives. Certain investments in real assets are made through investing in equity securities and tracked as equities when reporting fair value; however, they are viewed by their asset class, real assets, in our target asset allocation. The expected long-term rate of return on plan assets was 7.6% for 2020 and will be the same for 2021. This expected return was determined based on the study discussed above, including a premium for active management. Plan Contributions Servco plans to contribute $37 million into its pension plan during 2021. 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 volatility in 2020 associated with the ongoing coronavirus pandemic is not expected to impact Servco’s pension contributions in 2021. Estimated Future Benefit Payments The following pension benefit and postretirement benefit payments are expected to be paid to Servco’s plan participants: Year Pension Other Benefits Millions 2021 $ 8 $ 9 2022 10 11 2023 12 13 2024 15 15 2025 17 17 2026-2030 123 111 Total $ 185 $ 176 Servco 401(k) Plans Servco sponsors two 401(k) plans, which are defined contribution retirement plans subject to ERISA. Eligible non-represented employees of Servco participate in the Long Island Electric Utility Servco LLC Incentive Thrift Plan I (Thrift Plan I), and eligible represented employees of Servco participate in the Long Island Electric Utility Servco LLC Incentive Thrift Plan II (Thrift Plan II). Participants in the plans may contribute up to 50% of their eligible compensation to these plans, not to exceed the IRS maximums, including any catch-up contributions for those employees age 50 and above. Servco does not provide an employer match or core contribution for employees in Thrift Plan II. For employees in Thrift Plan I, Servco matches 50% of such employee contributions up to 8% of eligible compensation and provides core contributions (based on years of service and age) to employees who do not participate in Servco’s Retirement Income Plan. The amounts expensed by Servco for employer matching contributions for the years ended December 31, 2020, 2019 and 2018 were $9 million, $8 million and $7 million, respectively, and pursuant to the OSA, Servco recognizes Operating Revenues for the reimbursement of these costs. |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 12 Months Ended |
Dec. 31, 2020 | |
Other Commitments [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 December 31, 2020 and 2019. As of December 31, 2020 As of December 31, 2019 Millions Face Value of Outstanding Guarantees $ 1,792 $ 1,854 Exposure under Current Guarantees $ 128 $ 171 Letters of Credit Margin Posted $ 128 $ 121 Letters of Credit Margin Received $ 45 $ 29 Cash Deposited and Received Counterparty Cash Collateral Deposited $ — $ — Counterparty Cash Collateral Received $ (5) $ (4) Net Broker Balance Deposited (Received) $ 59 $ 48 Additional Amounts Posted Other Letters of Credit $ 42 $ 82 As part of determining credit exposure, PSEG Power nets receivables and payables with the corresponding net fair values of energy contracts. See Note 18. 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 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 December 2020, the EPA conditionally approved the CPG’s Feasibility Study, which evaluated various adaptive management scenarios for the remediation of only the upper 9 miles of the LPRSA. The EPA’s selection of its preferred adaptive management scenario will be subject to public review and comment prior to the EPA’s announcement of a final selection, which is expected in 2021. 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, 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 December 31, 2020, PSEG has approximately $65 million accrued for this matter. PSE&G has an Environmental Costs Liability of $52 million and a corresponding Regulatory Asset based on its continued ability to recover such costs in its rates. PSEG Power has an Other Noncurrent Liability of $13 million. 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. 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 $320 million and $358 million on an undiscounted basis, 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 $320 million as of December 31, 2020. Of this amount, $89 million was recorded in Other Current Liabilities and $231 million was reflected as Environmental Costs in Noncurrent Liabilities. PSE&G has recorded a $320 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 completed 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. 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. 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. In August 2020, PSE&G finalized a settlement with the federal government regarding the reimbursement of costs associated with the federal response to this matter and payment of civil penalties of an immaterial amount. 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. BGS, BGSS and ZECs Each year, PSE&G obtains its electric supply requirements through annual New Jersey BGS auctions for two categories of customers that choose not to purchase electric supply from third-party suppliers. The first category, which represents about 80% 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 Agreements with the winners of these RSCP and CIEP BGS auctions to purchase BGS for PSE&G’s load requirements. The winners of the RSCP and CIEP auctions have been 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. Beginning with the 2021 BGS auction, transmission will become the responsibility of the New Jersey EDCs, and will no longer be a component of the BGS auction product for either the RSCP or CIEP auctions. BGS suppliers serving load from the 2018, 2019 and 2020 BGS auctions have the option to transfer the transmission obligation to the New Jersey EDCs as of February 2021. Suppliers that do so will have their total BGS payment from the EDCs reduced to reflect the transfer of the transmission obligation to the EDCs. 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, 2021 is $351.06 per MW-day, replacing the BGS-CIEP auction year price ending May 31, 2021 of $359.98 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 2018 2019 2020 2021 36-Month Terms Ending May 2021 May 2022 May 2023 May 2024 (A) Load (MW) 2,900 2,800 2,800 2,900 $ per MWh $91.77 $98.04 $102.16 $64.80 (A) Prices set in the 2021 BGS auction will become effective on June 1, 2021 when the 2018 BGS auction agreements expire. 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 26. 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 December 31, 2020, the total minimum purchase requirements included in these commitments were as follows: Fuel Type PSEG Power’s Share of Commitments through 2025 Millions Nuclear Fuel Uranium $ 193 Enrichment $ 346 Fabrication $ 174 Natural Gas $ 1,256 Pending FERC Matters 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. Pending Tropical Storm Matter Following the effects of Tropical Storm Isaias, the New York Attorney General initiated an inquiry into PSEG LI’s preparation and response to the storm. In addition, the Department of Public Service (DPS) within the New York State Public Service Commission launched an investigation of state electric service providers, including PSEG LI, and other state telephone, cable and internet providers into their preparation and restoration efforts following Tropical Storm Isaias. Although the inquiry by the New York Attorney General remains pending, the DPS issued an interim storm investigation report. With respect to PSEG LI, the DPS’ report found that PSEG LI violated its Emergency Response Plan and DPS Regulations, and recommended that LIPA consider taking various actions, including terminating or renegotiating the Amended and Restated OSA. LIPA also initiated its own review of PSEG LI’s performance and issued a report with recommendations for improvements to PSEG LI’s structure and processes, including a timeline for implementing those recommendations. That report also recommended that LIPA either renegotiate or terminate the OSA . PSEG LI agreed with LIPA that it would fund approximately $6.5 million in claims by customers for food and medication spoilage costs incurred as a result of being without electric service during the storm. In December 2020, LIPA filed a complaint against PSEG LI in New York State court alleging multiple breaches of the OSA in connection with PSEG LI’s preparation for and response to Tropical Storm Isaias seeking specific performance and $70 million in damages. Pursuant to recommendations by the New York State Department of Public Service, LIPA has initiated a series of actions to allow its board to determine whether to seek to terminate the OSA or instead continue with PSEG LI as its Service Provider. PSEG LI is fully cooperating with the inquiries by the New York Attorney General and the DPS, and we cannot predict their outcome. PSEG LI also continues to work closely with LIPA to address the recommendations in LIPA’s report. PSEG LI intends to vigorously defend itself with regard to the allegations in LIPA’s complaint alleging breaches of the OSA; however a decision in this proceeding requiring specific performance or the payment of damages by PSEG LI or resulting in the termination of the OSA could have a material adverse effect on PSEG’s results of operations and financial condition. Pending BPU Audit of PSE&G In September 2020, the BPU ordered the commencement of a comprehensive affiliate and management audit of PSE&G. Phase 1 of the planned audit will review affiliate relations and cost allocation between PSE&G and its affiliates, including an analysis of the relationship between PSE&G and PSEG Energy Resources & Trade, LLC, a wholly owned subsidiary of PSEG Power over the past ten years, and between PSE&G and PSEG LI. Phase 2 will be a comprehensive management audit, which will address, among other things, executive management, corporate governance, system operations, human resources, cyber security, compliance with customer protection requirements and customer safety. 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 January 2021, the court partially granted PSEG Power’s motion to dismiss certain claims, reducing the amount claimed to $68 million. 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 year ended December 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. Nuclear Insurance Coverages and Assessments PSEG Power is a member of the joint underwriting association, American Nuclear Insurers (ANI), which provides nuclear liability insurance coverage at the Salem and Hope Creek site and the Peach Bottom site. The ANI policies are designed to satisfy the financial protection requirements outlined in the Price-Anderson Act, which sets the limit of liability for claims that could arise from an incident involving any licensed nuclear facility in the United States. The limit of liability per incident per site is composed of primary and excess layers. As of December 31, 2020, nuclear sites were required to purchase $450 million of primary liability coverage for each site (through ANI). The primary layer is supplemented by an excess layer, which is an industry self-insurance pool. In the event a nuclear site, which is part of the industry self-insurance pool, has a claim that exceeds the primary layer, each licensee would be assessed a prorated share of the excess layer. The excess layer limit is $13.3 billion. PSEG Power’s maximum aggregate assessment per incident is $433 million (based on PSEG Power’s ownership interests in Salem, Hope Creek and Peach Bottom) and its maximum aggregate annual assessment per incident is $65 million. If the damages exceed the limit of liability, Congress could impose further revenue-raising measures on the nuclear industry to pay claims. Further, a decision by the U.S. Supreme Court, not involving PSEG Power, held that the Price-Anderson Act did not preclude punitive damage awards based on state law claims. PSEG Power is also a member of an industry mutual insurance company, Nuclear Electric Insurance Limited (NEIL), which provides the property, decontamination and decommissioning liability insurance at the Salem and Hope Creek site and the Peach Bottom site. NEIL also provides replacement power coverage through its accidental outage policy. NEIL policies may make retrospective premium assessments in the case of adverse loss experience. The current maximum aggregate annual retrospective premium obligation for PSEG Power is approximately $49 million. NEIL requires its members to maintain an investment grade credit rating or to ensure collectability of their annual retrospective premium obligation by providing a financial guarantee, letter of credit, deposit premium, or some other means of assurance. Certain provisions in the NEIL policies provide that the insurer may suspend coverage with respect to all nuclear units on a site without notice if the NRC suspends or revokes the operating license for any unit on that site, issues a shutdown order with respect to such unit or issues a confirmatory order keeping such unit down. The ANI and NEIL policies all include coverage for claims arising out of acts of terrorism. However, NEIL policies are subject to an industry aggregate limit of $3.2 billion plus such additional amounts as NEIL recovers for such losses from reinsurance, indemnity and any other source applicable to such losses. |
PSEG Power LLC | |
Other Commitments [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 December 31, 2020 and 2019. As of December 31, 2020 As of December 31, 2019 Millions Face Value of Outstanding Guarantees $ 1,792 $ 1,854 Exposure under Current Guarantees $ 128 $ 171 Letters of Credit Margin Posted $ 128 $ 121 Letters of Credit Margin Received $ 45 $ 29 Cash Deposited and Received Counterparty Cash Collateral Deposited $ — $ — Counterparty Cash Collateral Received $ (5) $ (4) Net Broker Balance Deposited (Received) $ 59 $ 48 Additional Amounts Posted Other Letters of Credit $ 42 $ 82 As part of determining credit exposure, PSEG Power nets receivables and payables with the corresponding net fair values of energy contracts. See Note 18. 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 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 December 2020, the EPA conditionally approved the CPG’s Feasibility Study, which evaluated various adaptive management scenarios for the remediation of only the upper 9 miles of the LPRSA. The EPA’s selection of its preferred adaptive management scenario will be subject to public review and comment prior to the EPA’s announcement of a final selection, which is expected in 2021. 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, 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 December 31, 2020, PSEG has approximately $65 million accrued for this matter. PSE&G has an Environmental Costs Liability of $52 million and a corresponding Regulatory Asset based on its continued ability to recover such costs in its rates. PSEG Power has an Other Noncurrent Liability of $13 million. 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. 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 $320 million and $358 million on an undiscounted basis, 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 $320 million as of December 31, 2020. Of this amount, $89 million was recorded in Other Current Liabilities and $231 million was reflected as Environmental Costs in Noncurrent Liabilities. PSE&G has recorded a $320 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 completed 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. 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. 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. In August 2020, PSE&G finalized a settlement with the federal government regarding the reimbursement of costs associated with the federal response to this matter and payment of civil penalties of an immaterial amount. 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. BGS, BGSS and ZECs Each year, PSE&G obtains its electric supply requirements through annual New Jersey BGS auctions for two categories of customers that choose not to purchase electric supply from third-party suppliers. The first category, which represents about 80% 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 Agreements with the winners of these RSCP and CIEP BGS auctions to purchase BGS for PSE&G’s load requirements. The winners of the RSCP and CIEP auctions have been 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. Beginning with the 2021 BGS auction, transmission will become the responsibility of the New Jersey EDCs, and will no longer be a component of the BGS auction product for either the RSCP or CIEP auctions. BGS suppliers serving load from the 2018, 2019 and 2020 BGS auctions have the option to transfer the transmission obligation to the New Jersey EDCs as of February 2021. Suppliers that do so will have their total BGS payment from the EDCs reduced to reflect the transfer of the transmission obligation to the EDCs. 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, 2021 is $351.06 per MW-day, replacing the BGS-CIEP auction year price ending May 31, 2021 of $359.98 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 2018 2019 2020 2021 36-Month Terms Ending May 2021 May 2022 May 2023 May 2024 (A) Load (MW) 2,900 2,800 2,800 2,900 $ per MWh $91.77 $98.04 $102.16 $64.80 (A) Prices set in the 2021 BGS auction will become effective on June 1, 2021 when the 2018 BGS auction agreements expire. 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 26. 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 December 31, 2020, the total minimum purchase requirements included in these commitments were as follows: Fuel Type PSEG Power’s Share of Commitments through 2025 Millions Nuclear Fuel Uranium $ 193 Enrichment $ 346 Fabrication $ 174 Natural Gas $ 1,256 Pending FERC Matters 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. Pending Tropical Storm Matter Following the effects of Tropical Storm Isaias, the New York Attorney General initiated an inquiry into PSEG LI’s preparation and response to the storm. In addition, the Department of Public Service (DPS) within the New York State Public Service Commission launched an investigation of state electric service providers, including PSEG LI, and other state telephone, cable and internet providers into their preparation and restoration efforts following Tropical Storm Isaias. Although the inquiry by the New York Attorney General remains pending, the DPS issued an interim storm investigation report. With respect to PSEG LI, the DPS’ report found that PSEG LI violated its Emergency Response Plan and DPS Regulations, and recommended that LIPA consider taking various actions, including terminating or renegotiating the Amended and Restated OSA. LIPA also initiated its own review of PSEG LI’s performance and issued a report with recommendations for improvements to PSEG LI’s structure and processes, including a timeline for implementing those recommendations. That report also recommended that LIPA either renegotiate or terminate the OSA . PSEG LI agreed with LIPA that it would fund approximately $6.5 million in claims by customers for food and medication spoilage costs incurred as a result of being without electric service during the storm. In December 2020, LIPA filed a complaint against PSEG LI in New York State court alleging multiple breaches of the OSA in connection with PSEG LI’s preparation for and response to Tropical Storm Isaias seeking specific performance and $70 million in damages. Pursuant to recommendations by the New York State Department of Public Service, LIPA has initiated a series of actions to allow its board to determine whether to seek to terminate the OSA or instead continue with PSEG LI as its Service Provider. PSEG LI is fully cooperating with the inquiries by the New York Attorney General and the DPS, and we cannot predict their outcome. PSEG LI also continues to work closely with LIPA to address the recommendations in LIPA’s report. PSEG LI intends to vigorously defend itself with regard to the allegations in LIPA’s complaint alleging breaches of the OSA; however a decision in this proceeding requiring specific performance or the payment of damages by PSEG LI or resulting in the termination of the OSA could have a material adverse effect on PSEG’s results of operations and financial condition. Pending BPU Audit of PSE&G In September 2020, the BPU ordered the commencement of a comprehensive affiliate and management audit of PSE&G. Phase 1 of the planned audit will review affiliate relations and cost allocation between PSE&G and its affiliates, including an analysis of the relationship between PSE&G and PSEG Energy Resources & Trade, LLC, a wholly owned subsidiary of PSEG Power over the past ten years, and between PSE&G and PSEG LI. Phase 2 will be a comprehensive management audit, which will address, among other things, executive management, corporate governance, system operations, human resources, cyber security, compliance with customer protection requirements and customer safety. 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 January 2021, the court partially granted PSEG Power’s motion to dismiss certain claims, reducing the amount claimed to $68 million. 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 year ended December 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. Nuclear Insurance Coverages and Assessments PSEG Power is a member of the joint underwriting association, American Nuclear Insurers (ANI), which provides nuclear liability insurance coverage at the Salem and Hope Creek site and the Peach Bottom site. The ANI policies are designed to satisfy the financial protection requirements outlined in the Price-Anderson Act, which sets the limit of liability for claims that could arise from an incident involving any licensed nuclear facility in the United States. The limit of liability per incident per site is composed of primary and excess layers. As of December 31, 2020, nuclear sites were required to purchase $450 million of primary liability coverage for each site (through ANI). The primary layer is supplemented by an excess layer, which is an industry self-insurance pool. In the event a nuclear site, which is part of the industry self-insurance pool, has a claim that exceeds the primary layer, each licensee would be assessed a prorated share of the excess layer. The excess layer limit is $13.3 billion. PSEG Power’s maximum aggregate assessment per incident is $433 million (based on PSEG Power’s ownership interests in Salem, Hope Creek and Peach Bottom) and its maximum aggregate annual assessment per incident is $65 million. If the damages exceed the limit of liability, Congress could impose further revenue-raising measures on the nuclear industry to pay claims. Further, a decision by the U.S. Supreme Court, not involving PSEG Power, held that the Price-Anderson Act did not preclude punitive damage awards based on state law claims. PSEG Power is also a member of an industry mutual insurance company, Nuclear Electric Insurance Limited (NEIL), which provides the property, decontamination and decommissioning liability insurance at the Salem and Hope Creek site and the Peach Bottom site. NEIL also provides replacement power coverage through its accidental outage policy. NEIL policies may make retrospective premium assessments in the case of adverse loss experience. The current maximum aggregate annual retrospective premium obligation for PSEG Power is approximately $49 million. NEIL requires its members to maintain an investment grade credit rating or to ensure collectability of their annual retrospective premium obligation by providing a financial guarantee, letter of credit, deposit premium, or some other means of assurance. Certain provisions in the NEIL policies provide that the insurer may suspend coverage with respect to all nuclear units on a site without notice if the NRC suspends or revokes the operating license for any unit on that site, issues a shutdown order with respect to such unit or issues a confirmatory order keeping such unit down. The ANI and NEIL policies all include coverage for claims arising out of acts of terrorism. However, NEIL policies are subject to an industry aggregate limit of $3.2 billion plus such additional amounts as NEIL recovers for such losses from reinsurance, indemnity and any other source applicable to such losses. |
Public Service Electric and Gas Company | |
Other Commitments [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 December 31, 2020 and 2019. As of December 31, 2020 As of December 31, 2019 Millions Face Value of Outstanding Guarantees $ 1,792 $ 1,854 Exposure under Current Guarantees $ 128 $ 171 Letters of Credit Margin Posted $ 128 $ 121 Letters of Credit Margin Received $ 45 $ 29 Cash Deposited and Received Counterparty Cash Collateral Deposited $ — $ — Counterparty Cash Collateral Received $ (5) $ (4) Net Broker Balance Deposited (Received) $ 59 $ 48 Additional Amounts Posted Other Letters of Credit $ 42 $ 82 As part of determining credit exposure, PSEG Power nets receivables and payables with the corresponding net fair values of energy contracts. See Note 18. 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 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 December 2020, the EPA conditionally approved the CPG’s Feasibility Study, which evaluated various adaptive management scenarios for the remediation of only the upper 9 miles of the LPRSA. The EPA’s selection of its preferred adaptive management scenario will be subject to public review and comment prior to the EPA’s announcement of a final selection, which is expected in 2021. 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, 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 December 31, 2020, PSEG has approximately $65 million accrued for this matter. PSE&G has an Environmental Costs Liability of $52 million and a corresponding Regulatory Asset based on its continued ability to recover such costs in its rates. PSEG Power has an Other Noncurrent Liability of $13 million. 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. 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 $320 million and $358 million on an undiscounted basis, 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 $320 million as of December 31, 2020. Of this amount, $89 million was recorded in Other Current Liabilities and $231 million was reflected as Environmental Costs in Noncurrent Liabilities. PSE&G has recorded a $320 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 completed 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. 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. 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. In August 2020, PSE&G finalized a settlement with the federal government regarding the reimbursement of costs associated with the federal response to this matter and payment of civil penalties of an immaterial amount. 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. BGS, BGSS and ZECs Each year, PSE&G obtains its electric supply requirements through annual New Jersey BGS auctions for two categories of customers that choose not to purchase electric supply from third-party suppliers. The first category, which represents about 80% 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 Agreements with the winners of these RSCP and CIEP BGS auctions to purchase BGS for PSE&G’s load requirements. The winners of the RSCP and CIEP auctions have been 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. Beginning with the 2021 BGS auction, transmission will become the responsibility of the New Jersey EDCs, and will no longer be a component of the BGS auction product for either the RSCP or CIEP auctions. BGS suppliers serving load from the 2018, 2019 and 2020 BGS auctions have the option to transfer the transmission obligation to the New Jersey EDCs as of February 2021. Suppliers that do so will have their total BGS payment from the EDCs reduced to reflect the transfer of the transmission obligation to the EDCs. 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, 2021 is $351.06 per MW-day, replacing the BGS-CIEP auction year price ending May 31, 2021 of $359.98 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 2018 2019 2020 2021 36-Month Terms Ending May 2021 May 2022 May 2023 May 2024 (A) Load (MW) 2,900 2,800 2,800 2,900 $ per MWh $91.77 $98.04 $102.16 $64.80 (A) Prices set in the 2021 BGS auction will become effective on June 1, 2021 when the 2018 BGS auction agreements expire. 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 26. 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 December 31, 2020, the total minimum purchase requirements included in these commitments were as follows: Fuel Type PSEG Power’s Share of Commitments through 2025 Millions Nuclear Fuel Uranium $ 193 Enrichment $ 346 Fabrication $ 174 Natural Gas $ 1,256 Pending FERC Matters 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. Pending Tropical Storm Matter Following the effects of Tropical Storm Isaias, the New York Attorney General initiated an inquiry into PSEG LI’s preparation and response to the storm. In addition, the Department of Public Service (DPS) within the New York State Public Service Commission launched an investigation of state electric service providers, including PSEG LI, and other state telephone, cable and internet providers into their preparation and restoration efforts following Tropical Storm Isaias. Although the inquiry by the New York Attorney General remains pending, the DPS issued an interim storm investigation report. With respect to PSEG LI, the DPS’ report found that PSEG LI violated its Emergency Response Plan and DPS Regulations, and recommended that LIPA consider taking various actions, including terminating or renegotiating the Amended and Restated OSA. LIPA also initiated its own review of PSEG LI’s performance and issued a report with recommendations for improvements to PSEG LI’s structure and processes, including a timeline for implementing those recommendations. That report also recommended that LIPA either renegotiate or terminate the OSA . PSEG LI agreed with LIPA that it would fund approximately $6.5 million in claims by customers for food and medication spoilage costs incurred as a result of being without electric service during the storm. In December 2020, LIPA filed a complaint against PSEG LI in New York State court alleging multiple breaches of the OSA in connection with PSEG LI’s preparation for and response to Tropical Storm Isaias seeking specific performance and $70 million in damages. Pursuant to recommendations by the New York State Department of Public Service, LIPA has initiated a series of actions to allow its board to determine whether to seek to terminate the OSA or instead continue with PSEG LI as its Service Provider. PSEG LI is fully cooperating with the inquiries by the New York Attorney General and the DPS, and we cannot predict their outcome. PSEG LI also continues to work closely with LIPA to address the recommendations in LIPA’s report. PSEG LI intends to vigorously defend itself with regard to the allegations in LIPA’s complaint alleging breaches of the OSA; however a decision in this proceeding requiring specific performance or the payment of damages by PSEG LI or resulting in the termination of the OSA could have a material adverse effect on PSEG’s results of operations and financial condition. Pending BPU Audit of PSE&G In September 2020, the BPU ordered the commencement of a comprehensive affiliate and management audit of PSE&G. Phase 1 of the planned audit will review affiliate relations and cost allocation between PSE&G and its affiliates, including an analysis of the relationship between PSE&G and PSEG Energy Resources & Trade, LLC, a wholly owned subsidiary of PSEG Power over the past ten years, and between PSE&G and PSEG LI. Phase 2 will be a comprehensive management audit, which will address, among other things, executive management, corporate governance, system operations, human resources, cyber security, compliance with customer protection requirements and customer safety. 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 January 2021, the court partially granted PSEG Power’s motion to dismiss certain claims, reducing the amount claimed to $68 million. 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 year ended December 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. Nuclear Insurance Coverages and Assessments PSEG Power is a member of the joint underwriting association, American Nuclear Insurers (ANI), which provides nuclear liability insurance coverage at the Salem and Hope Creek site and the Peach Bottom site. The ANI policies are designed to satisfy the financial protection requirements outlined in the Price-Anderson Act, which sets the limit of liability for claims that could arise from an incident involving any licensed nuclear facility in the United States. The limit of liability per incident per site is composed of primary and excess layers. As of December 31, 2020, nuclear sites were required to purchase $450 million of primary liability coverage for each site (through ANI). The primary layer is supplemented by an excess layer, which is an industry self-insurance pool. In the event a nuclear site, which is part of the industry self-insurance pool, has a claim that exceeds the primary layer, each licensee would be assessed a prorated share of the excess layer. The excess layer limit is $13.3 billion. PSEG Power’s maximum aggregate assessment per incident is $433 million (based on PSEG Power’s ownership interests in Salem, Hope Creek and Peach Bottom) and its maximum aggregate annual assessment per incident is $65 million. If the damages exceed the limit of liability, Congress could impose further revenue-raising measures on the nuclear industry to pay claims. Further, a decision by the U.S. Supreme Court, not involving PSEG Power, held that the Price-Anderson Act did not preclude punitive damage awards based on state law claims. PSEG Power is also a member of an industry mutual insurance company, Nuclear Electric Insurance Limited (NEIL), which provides the property, decontamination and decommissioning liability insurance at the Salem and Hope Creek site and the Peach Bottom site. NEIL also provides replacement power coverage through its accidental outage policy. NEIL policies may make retrospective premium assessments in the case of adverse loss experience. The current maximum aggregate annual retrospective premium obligation for PSEG Power is approximately $49 million. NEIL requires its members to maintain an investment grade credit rating or to ensure collectability of their annual retrospective premium obligation by providing a financial guarantee, letter of credit, deposit premium, or some other means of assurance. Certain provisions in the NEIL policies provide that the insurer may suspend coverage with respect to all nuclear units on a site without notice if the NRC suspends or revokes the operating license for any unit on that site, issues a shutdown order with respect to such unit or issues a confirmatory order keeping such unit down. The ANI and NEIL policies all include coverage for claims arising out of acts of terrorism. However, NEIL policies are subject to an industry aggregate limit of $3.2 billion plus such additional amounts as NEIL recovers for such losses from reinsurance, indemnity and any other source applicable to such losses. |
Debt and Credit Facilities
Debt and Credit Facilities | 12 Months Ended |
Dec. 31, 2020 | |
Debt Instrument [Line Items] | |
Schedule Of Consolidated Debt | Debt and Credit Facilities Long-Term Debt As of December 31, Maturity 2020 2019 Millions PSEG Term Loan: Variable Rate 2020 $ — $ 700 Total Term Loan — 700 Senior Notes: 2.00% 2021 300 300 2.65% 2022 700 700 2.88% 2024 750 750 0.80% 2025 550 — 1.60% 2030 550 — 8.63% (A) 2031 96 — Total Senior Notes 2,946 1,750 Principal Amount Outstanding 2,946 2,450 Amounts Due Within One Year (300) (700) Net Unamortized Discount and Debt Issuance Costs (17) (9) Total Long-Term Debt of PSEG $ 2,629 $ 1,741 As of December 31, Maturity 2020 2019 Millions PSE&G First and Refunding Mortgage Bonds (B): 9.25% 2021 $ 134 $ 134 8.00% 2037 7 7 5.00% 2037 8 8 Total First and Refunding Mortgage Bonds 149 149 Medium-Term Notes (B): 3.50% 2020 — 250 7.04% 2020 — 9 1.90% 2021 300 300 2.38% 2023 500 500 3.25% 2023 325 325 3.75% 2024 250 250 3.15% 2024 250 250 3.05% 2024 250 250 3.00% 2025 350 350 2.25% 2026 425 425 3.00% 2027 425 425 3.70% 2028 375 375 3.65% 2028 325 325 3.20% 2029 375 375 2.45% 2030 300 — 5.25% 2035 250 250 5.70% 2036 250 250 5.80% 2037 350 350 5.38% 2039 250 250 5.50% 2040 300 300 3.95% 2042 450 450 3.65% 2042 350 350 3.80% 2043 400 400 4.00% 2044 250 250 4.05% 2045 250 250 4.15% 2045 250 250 3.80% 2046 550 550 3.60% 2047 350 350 4.05% 2048 325 325 3.85% 2049 375 375 3.20% 2049 400 400 3.15% 2050 300 — 2.70% 2050 375 — 2.05% 2050 375 — Total MTNs 10,850 9,759 Principal Amount Outstanding 10,999 9,908 Amounts Due Within One Year (434) (259) Net Unamortized Discount and Selling Expense (90) (81) Total Long-Term Debt of PSE&G $ 10,475 $ 9,568 As of December 31, Maturity 2020 2019 Millions PSEG Power Senior Notes: 5.13% 2020 $ — $ 406 3.00% 2021 700 700 4.15% 2021 250 250 3.85% 2023 700 700 4.30% 2023 250 250 8.63% (A) 2031 404 500 Total Senior Notes 2,304 2,806 Pollution Control Notes: Floating Rate (C) 2022 44 44 Total Pollution Control Notes 44 44 Principal Amount Outstanding 2,348 2,850 Amounts Due Within One Year (950) (406) Net Unamortized Discount and Debt Issuance Costs (6) (10) Total Long-Term Debt of PSEG Power $ 1,392 $ 2,434 (A) In December 2020, PSEG issued $96 million principal amount of 8.63% Senior Notes due 2031 to holders of a like principal amount of 8.63% Senior Notes due 2031 originally issued by PSEG Power who validly tendered their notes pursuant to an offer to exchange. Upon consummation of the offer to exchange, the PSEG Power notes accepted in the exchange were cancelled. The transaction resulted in a non-cash financing activity for both PSEG and PSEG Power. (B) Secured by essentially all property of PSE&G pursuant to its First and Refunding Mortgage. (C) The Pennsylvania Economic Development Financing Authority (PEDFA) bond that is serviced and secured by PSEG Power Pollution Control Notes is a variable rate bond that is in weekly reset mode. Long-Term Debt Maturities The aggregate principal amounts of maturities for each of the five years following December 31, 2020 are as follows: Year PSEG PSE&G PSEG Power Total 2021 $ 300 $ 434 $ 950 $ 1,684 2022 700 — 44 744 2023 — 825 950 1,775 2024 750 750 — 1,500 2025 550 350 — 900 Thereafter 646 8,640 404 9,690 Total $ 2,946 $ 10,999 $ 2,348 $ 16,293 Long-Term Debt Financing Transactions During 2020, PSEG and its subsidiaries had the following Long-Term Debt issuances, maturities and redemptions: PSEG • issued $550 million of 0.80% Senior Notes due August 2025, • issued $550 million of 1.60% Senior Notes due August 2030, • issued $96 million of 8.63% Senior Notes due April 2031 in exchange for a like amount of 8.63% Senior Notes due April 2031 originally issued by PSEG Power, and • retired a $700 million Term Loan at maturity. PSE&G • issued $300 million of 2.45% Secured Medium-Term Notes, Series N, due January 2030, • issued $300 million of 3.15% Secured Medium-Term Notes, Series N, due January 2050, • issued $375 million of 2.70% Secured Medium-Term Notes, Series N, due May 2050, • issued $375 million of 2.05% Secured Medium-Term Notes, Series N, due August 2050, • retired $250 million of 3.50% Medium-Term Notes, Series G, at maturity, and • retired $9 million of 7.04% Medium-Term Notes, Series A, at maturity. PSEG Power • retired $406 million of 5.13% Senior Notes at maturity, and • cancelled $96 million of 8.63% Senior Notes that were exchanged for a like amount of 8.63% Senior Notes due April 2031 issued by PSEG. Debt Covenants PSEG Power’s existing credit agreements and senior notes contain covenants restricting the ability of PSEG Power and its subsidiaries that guarantee its indebtedness from consummating certain mergers, consolidations or asset sales. The disposal of PSEG Power’s non-nuclear generating fleet could, depending on the structure of such transaction, among other factors, trigger a default under one or more of these provisions. For these reasons, or for other reasons, PSEG Power may decide, or be required, to seek amendments or waivers under its credit agreements and may redeem its outstanding senior notes, at a price equal to the principal amount thereof plus a make-whole premium. Whether such amendments, waivers or redemptions will be required will depend on a number of factors, including the structure of any transaction resulting from the strategic review, and any actual redemption price would depend on the applicable treasury rate in effect at such time. It is likewise possible that the ultimate outcome of the process may result in a transaction, or may result in no transaction at all, where the PSEG Power notes are not redeemed. If PSEG Power is required to redeem its senior notes, the cost of such redemption would be material. Short-Term Liquidity PSEG meets its short-term liquidity requirements, as well as those of PSEG Power, primarily 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 December 31, 2020, the total available credit capacity was $3.3 billion. As of December 31, 2020, no single institution represented more than 9% of the total commitments in the credit facilities. As of December 31, 2020, the total credit capacity was in excess of the anticipated maximum liquidity requirements over PSEG’s 12-month planning horizon, including access to capital to meet redemptions. 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 our subsidiaries’ liquidity needs. The total credit facilities and available liquidity as of December 31, 2020 were as follows: As of December 31, 2020 Company/Facility Total Usage (D) Available Expiration Primary Purpose Millions PSEG 5-year Credit Facilities (A) $ 1,500 $ 665 $ 835 Mar 2024 Commercial Paper Support/Funding/Letters of Credit Total PSEG $ 1,500 $ 665 $ 835 PSE&G 5-year Credit Facility (B) $ 600 $ 117 $ 483 Mar 2024 Commercial Paper Support/Funding/Letters of Credit Total PSE&G $ 600 $ 117 $ 483 PSEG Power 3-year Letter of Credit Facility $ 100 $ 48 $ 52 Sept 2021 Letters of Credit 3-year Letter of Credit Facility 100 81 19 Sept 2022 Letters of Credit 5-year Credit Facilities (C) 1,900 39 1,861 Mar 2024 Funding/Letters of Credit Total PSEG Power $ 2,100 $ 168 $ 1,932 Total $ 4,200 $ 950 $ 3,250 (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 December 31, 2020, PSEG had $663 million outstanding at a weighted average interest rate of 0.33%. PSE&G had $100 million outstanding at a weighted average interest rate of 0.28% under its Commercial Paper Program as of December 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, which was prepaid in January 2021. In April 2020, PSEG entered into two 364-day variable rate term loan agreements for $200 million and $300 million which were prepaid in August 2020. Fair Value of Debt The estimated fair values, carrying amounts and methods used to determine fair value of long-term debt as of December 31, 2020 and 2019 are included in the following table and accompanying notes as of December 31, 2020 and 2019. See Note 19. Fair Value Measurements for more information on fair value guidance and the hierarchy that prioritizes the inputs to fair value measurements into three levels. December 31, 2020 December 31, 2019 Carrying Fair Carrying Fair Millions Long-Term Debt: PSEG (A) (B) $ 2,929 $ 3,092 $ 2,441 $ 2,479 PSE&G (B) 10,909 13,372 9,827 11,107 PSEG Power (B) 2,342 2,679 2,840 3,137 Total Long-Term Debt $ 16,180 $ 19,143 $ 15,108 $ 16,723 (A) Includes a floating-rate term loan of $700 million at PSEG as of December 31, 2019. The fair value of the term loan debt (Level 2 measurement) approximates the carrying value because the interest payments are based on LIBOR rates that are reset monthly and the debt is redeemable at face value by PSEG at any time. |
Public Service Electric and Gas Company | |
Debt Instrument [Line Items] | |
Schedule Of Consolidated Debt | Debt and Credit Facilities Long-Term Debt As of December 31, Maturity 2020 2019 Millions PSEG Term Loan: Variable Rate 2020 $ — $ 700 Total Term Loan — 700 Senior Notes: 2.00% 2021 300 300 2.65% 2022 700 700 2.88% 2024 750 750 0.80% 2025 550 — 1.60% 2030 550 — 8.63% (A) 2031 96 — Total Senior Notes 2,946 1,750 Principal Amount Outstanding 2,946 2,450 Amounts Due Within One Year (300) (700) Net Unamortized Discount and Debt Issuance Costs (17) (9) Total Long-Term Debt of PSEG $ 2,629 $ 1,741 As of December 31, Maturity 2020 2019 Millions PSE&G First and Refunding Mortgage Bonds (B): 9.25% 2021 $ 134 $ 134 8.00% 2037 7 7 5.00% 2037 8 8 Total First and Refunding Mortgage Bonds 149 149 Medium-Term Notes (B): 3.50% 2020 — 250 7.04% 2020 — 9 1.90% 2021 300 300 2.38% 2023 500 500 3.25% 2023 325 325 3.75% 2024 250 250 3.15% 2024 250 250 3.05% 2024 250 250 3.00% 2025 350 350 2.25% 2026 425 425 3.00% 2027 425 425 3.70% 2028 375 375 3.65% 2028 325 325 3.20% 2029 375 375 2.45% 2030 300 — 5.25% 2035 250 250 5.70% 2036 250 250 5.80% 2037 350 350 5.38% 2039 250 250 5.50% 2040 300 300 3.95% 2042 450 450 3.65% 2042 350 350 3.80% 2043 400 400 4.00% 2044 250 250 4.05% 2045 250 250 4.15% 2045 250 250 3.80% 2046 550 550 3.60% 2047 350 350 4.05% 2048 325 325 3.85% 2049 375 375 3.20% 2049 400 400 3.15% 2050 300 — 2.70% 2050 375 — 2.05% 2050 375 — Total MTNs 10,850 9,759 Principal Amount Outstanding 10,999 9,908 Amounts Due Within One Year (434) (259) Net Unamortized Discount and Selling Expense (90) (81) Total Long-Term Debt of PSE&G $ 10,475 $ 9,568 As of December 31, Maturity 2020 2019 Millions PSEG Power Senior Notes: 5.13% 2020 $ — $ 406 3.00% 2021 700 700 4.15% 2021 250 250 3.85% 2023 700 700 4.30% 2023 250 250 8.63% (A) 2031 404 500 Total Senior Notes 2,304 2,806 Pollution Control Notes: Floating Rate (C) 2022 44 44 Total Pollution Control Notes 44 44 Principal Amount Outstanding 2,348 2,850 Amounts Due Within One Year (950) (406) Net Unamortized Discount and Debt Issuance Costs (6) (10) Total Long-Term Debt of PSEG Power $ 1,392 $ 2,434 (A) In December 2020, PSEG issued $96 million principal amount of 8.63% Senior Notes due 2031 to holders of a like principal amount of 8.63% Senior Notes due 2031 originally issued by PSEG Power who validly tendered their notes pursuant to an offer to exchange. Upon consummation of the offer to exchange, the PSEG Power notes accepted in the exchange were cancelled. The transaction resulted in a non-cash financing activity for both PSEG and PSEG Power. (B) Secured by essentially all property of PSE&G pursuant to its First and Refunding Mortgage. (C) The Pennsylvania Economic Development Financing Authority (PEDFA) bond that is serviced and secured by PSEG Power Pollution Control Notes is a variable rate bond that is in weekly reset mode. Long-Term Debt Maturities The aggregate principal amounts of maturities for each of the five years following December 31, 2020 are as follows: Year PSEG PSE&G PSEG Power Total 2021 $ 300 $ 434 $ 950 $ 1,684 2022 700 — 44 744 2023 — 825 950 1,775 2024 750 750 — 1,500 2025 550 350 — 900 Thereafter 646 8,640 404 9,690 Total $ 2,946 $ 10,999 $ 2,348 $ 16,293 Long-Term Debt Financing Transactions During 2020, PSEG and its subsidiaries had the following Long-Term Debt issuances, maturities and redemptions: PSEG • issued $550 million of 0.80% Senior Notes due August 2025, • issued $550 million of 1.60% Senior Notes due August 2030, • issued $96 million of 8.63% Senior Notes due April 2031 in exchange for a like amount of 8.63% Senior Notes due April 2031 originally issued by PSEG Power, and • retired a $700 million Term Loan at maturity. PSE&G • issued $300 million of 2.45% Secured Medium-Term Notes, Series N, due January 2030, • issued $300 million of 3.15% Secured Medium-Term Notes, Series N, due January 2050, • issued $375 million of 2.70% Secured Medium-Term Notes, Series N, due May 2050, • issued $375 million of 2.05% Secured Medium-Term Notes, Series N, due August 2050, • retired $250 million of 3.50% Medium-Term Notes, Series G, at maturity, and • retired $9 million of 7.04% Medium-Term Notes, Series A, at maturity. PSEG Power • retired $406 million of 5.13% Senior Notes at maturity, and • cancelled $96 million of 8.63% Senior Notes that were exchanged for a like amount of 8.63% Senior Notes due April 2031 issued by PSEG. Debt Covenants PSEG Power’s existing credit agreements and senior notes contain covenants restricting the ability of PSEG Power and its subsidiaries that guarantee its indebtedness from consummating certain mergers, consolidations or asset sales. The disposal of PSEG Power’s non-nuclear generating fleet could, depending on the structure of such transaction, among other factors, trigger a default under one or more of these provisions. For these reasons, or for other reasons, PSEG Power may decide, or be required, to seek amendments or waivers under its credit agreements and may redeem its outstanding senior notes, at a price equal to the principal amount thereof plus a make-whole premium. Whether such amendments, waivers or redemptions will be required will depend on a number of factors, including the structure of any transaction resulting from the strategic review, and any actual redemption price would depend on the applicable treasury rate in effect at such time. It is likewise possible that the ultimate outcome of the process may result in a transaction, or may result in no transaction at all, where the PSEG Power notes are not redeemed. If PSEG Power is required to redeem its senior notes, the cost of such redemption would be material. Short-Term Liquidity PSEG meets its short-term liquidity requirements, as well as those of PSEG Power, primarily 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 December 31, 2020, the total available credit capacity was $3.3 billion. As of December 31, 2020, no single institution represented more than 9% of the total commitments in the credit facilities. As of December 31, 2020, the total credit capacity was in excess of the anticipated maximum liquidity requirements over PSEG’s 12-month planning horizon, including access to capital to meet redemptions. 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 our subsidiaries’ liquidity needs. The total credit facilities and available liquidity as of December 31, 2020 were as follows: As of December 31, 2020 Company/Facility Total Usage (D) Available Expiration Primary Purpose Millions PSEG 5-year Credit Facilities (A) $ 1,500 $ 665 $ 835 Mar 2024 Commercial Paper Support/Funding/Letters of Credit Total PSEG $ 1,500 $ 665 $ 835 PSE&G 5-year Credit Facility (B) $ 600 $ 117 $ 483 Mar 2024 Commercial Paper Support/Funding/Letters of Credit Total PSE&G $ 600 $ 117 $ 483 PSEG Power 3-year Letter of Credit Facility $ 100 $ 48 $ 52 Sept 2021 Letters of Credit 3-year Letter of Credit Facility 100 81 19 Sept 2022 Letters of Credit 5-year Credit Facilities (C) 1,900 39 1,861 Mar 2024 Funding/Letters of Credit Total PSEG Power $ 2,100 $ 168 $ 1,932 Total $ 4,200 $ 950 $ 3,250 (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 December 31, 2020, PSEG had $663 million outstanding at a weighted average interest rate of 0.33%. PSE&G had $100 million outstanding at a weighted average interest rate of 0.28% under its Commercial Paper Program as of December 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, which was prepaid in January 2021. In April 2020, PSEG entered into two 364-day variable rate term loan agreements for $200 million and $300 million which were prepaid in August 2020. Fair Value of Debt The estimated fair values, carrying amounts and methods used to determine fair value of long-term debt as of December 31, 2020 and 2019 are included in the following table and accompanying notes as of December 31, 2020 and 2019. See Note 19. Fair Value Measurements for more information on fair value guidance and the hierarchy that prioritizes the inputs to fair value measurements into three levels. December 31, 2020 December 31, 2019 Carrying Fair Carrying Fair Millions Long-Term Debt: PSEG (A) (B) $ 2,929 $ 3,092 $ 2,441 $ 2,479 PSE&G (B) 10,909 13,372 9,827 11,107 PSEG Power (B) 2,342 2,679 2,840 3,137 Total Long-Term Debt $ 16,180 $ 19,143 $ 15,108 $ 16,723 (A) Includes a floating-rate term loan of $700 million at PSEG as of December 31, 2019. The fair value of the term loan debt (Level 2 measurement) approximates the carrying value because the interest payments are based on LIBOR rates that are reset monthly and the debt is redeemable at face value by PSEG at any time. |
PSEG Power LLC | |
Debt Instrument [Line Items] | |
Schedule Of Consolidated Debt | Debt and Credit Facilities Long-Term Debt As of December 31, Maturity 2020 2019 Millions PSEG Term Loan: Variable Rate 2020 $ — $ 700 Total Term Loan — 700 Senior Notes: 2.00% 2021 300 300 2.65% 2022 700 700 2.88% 2024 750 750 0.80% 2025 550 — 1.60% 2030 550 — 8.63% (A) 2031 96 — Total Senior Notes 2,946 1,750 Principal Amount Outstanding 2,946 2,450 Amounts Due Within One Year (300) (700) Net Unamortized Discount and Debt Issuance Costs (17) (9) Total Long-Term Debt of PSEG $ 2,629 $ 1,741 As of December 31, Maturity 2020 2019 Millions PSE&G First and Refunding Mortgage Bonds (B): 9.25% 2021 $ 134 $ 134 8.00% 2037 7 7 5.00% 2037 8 8 Total First and Refunding Mortgage Bonds 149 149 Medium-Term Notes (B): 3.50% 2020 — 250 7.04% 2020 — 9 1.90% 2021 300 300 2.38% 2023 500 500 3.25% 2023 325 325 3.75% 2024 250 250 3.15% 2024 250 250 3.05% 2024 250 250 3.00% 2025 350 350 2.25% 2026 425 425 3.00% 2027 425 425 3.70% 2028 375 375 3.65% 2028 325 325 3.20% 2029 375 375 2.45% 2030 300 — 5.25% 2035 250 250 5.70% 2036 250 250 5.80% 2037 350 350 5.38% 2039 250 250 5.50% 2040 300 300 3.95% 2042 450 450 3.65% 2042 350 350 3.80% 2043 400 400 4.00% 2044 250 250 4.05% 2045 250 250 4.15% 2045 250 250 3.80% 2046 550 550 3.60% 2047 350 350 4.05% 2048 325 325 3.85% 2049 375 375 3.20% 2049 400 400 3.15% 2050 300 — 2.70% 2050 375 — 2.05% 2050 375 — Total MTNs 10,850 9,759 Principal Amount Outstanding 10,999 9,908 Amounts Due Within One Year (434) (259) Net Unamortized Discount and Selling Expense (90) (81) Total Long-Term Debt of PSE&G $ 10,475 $ 9,568 As of December 31, Maturity 2020 2019 Millions PSEG Power Senior Notes: 5.13% 2020 $ — $ 406 3.00% 2021 700 700 4.15% 2021 250 250 3.85% 2023 700 700 4.30% 2023 250 250 8.63% (A) 2031 404 500 Total Senior Notes 2,304 2,806 Pollution Control Notes: Floating Rate (C) 2022 44 44 Total Pollution Control Notes 44 44 Principal Amount Outstanding 2,348 2,850 Amounts Due Within One Year (950) (406) Net Unamortized Discount and Debt Issuance Costs (6) (10) Total Long-Term Debt of PSEG Power $ 1,392 $ 2,434 (A) In December 2020, PSEG issued $96 million principal amount of 8.63% Senior Notes due 2031 to holders of a like principal amount of 8.63% Senior Notes due 2031 originally issued by PSEG Power who validly tendered their notes pursuant to an offer to exchange. Upon consummation of the offer to exchange, the PSEG Power notes accepted in the exchange were cancelled. The transaction resulted in a non-cash financing activity for both PSEG and PSEG Power. (B) Secured by essentially all property of PSE&G pursuant to its First and Refunding Mortgage. (C) The Pennsylvania Economic Development Financing Authority (PEDFA) bond that is serviced and secured by PSEG Power Pollution Control Notes is a variable rate bond that is in weekly reset mode. Long-Term Debt Maturities The aggregate principal amounts of maturities for each of the five years following December 31, 2020 are as follows: Year PSEG PSE&G PSEG Power Total 2021 $ 300 $ 434 $ 950 $ 1,684 2022 700 — 44 744 2023 — 825 950 1,775 2024 750 750 — 1,500 2025 550 350 — 900 Thereafter 646 8,640 404 9,690 Total $ 2,946 $ 10,999 $ 2,348 $ 16,293 Long-Term Debt Financing Transactions During 2020, PSEG and its subsidiaries had the following Long-Term Debt issuances, maturities and redemptions: PSEG • issued $550 million of 0.80% Senior Notes due August 2025, • issued $550 million of 1.60% Senior Notes due August 2030, • issued $96 million of 8.63% Senior Notes due April 2031 in exchange for a like amount of 8.63% Senior Notes due April 2031 originally issued by PSEG Power, and • retired a $700 million Term Loan at maturity. PSE&G • issued $300 million of 2.45% Secured Medium-Term Notes, Series N, due January 2030, • issued $300 million of 3.15% Secured Medium-Term Notes, Series N, due January 2050, • issued $375 million of 2.70% Secured Medium-Term Notes, Series N, due May 2050, • issued $375 million of 2.05% Secured Medium-Term Notes, Series N, due August 2050, • retired $250 million of 3.50% Medium-Term Notes, Series G, at maturity, and • retired $9 million of 7.04% Medium-Term Notes, Series A, at maturity. PSEG Power • retired $406 million of 5.13% Senior Notes at maturity, and • cancelled $96 million of 8.63% Senior Notes that were exchanged for a like amount of 8.63% Senior Notes due April 2031 issued by PSEG. Debt Covenants PSEG Power’s existing credit agreements and senior notes contain covenants restricting the ability of PSEG Power and its subsidiaries that guarantee its indebtedness from consummating certain mergers, consolidations or asset sales. The disposal of PSEG Power’s non-nuclear generating fleet could, depending on the structure of such transaction, among other factors, trigger a default under one or more of these provisions. For these reasons, or for other reasons, PSEG Power may decide, or be required, to seek amendments or waivers under its credit agreements and may redeem its outstanding senior notes, at a price equal to the principal amount thereof plus a make-whole premium. Whether such amendments, waivers or redemptions will be required will depend on a number of factors, including the structure of any transaction resulting from the strategic review, and any actual redemption price would depend on the applicable treasury rate in effect at such time. It is likewise possible that the ultimate outcome of the process may result in a transaction, or may result in no transaction at all, where the PSEG Power notes are not redeemed. If PSEG Power is required to redeem its senior notes, the cost of such redemption would be material. Short-Term Liquidity PSEG meets its short-term liquidity requirements, as well as those of PSEG Power, primarily 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 December 31, 2020, the total available credit capacity was $3.3 billion. As of December 31, 2020, no single institution represented more than 9% of the total commitments in the credit facilities. As of December 31, 2020, the total credit capacity was in excess of the anticipated maximum liquidity requirements over PSEG’s 12-month planning horizon, including access to capital to meet redemptions. 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 our subsidiaries’ liquidity needs. The total credit facilities and available liquidity as of December 31, 2020 were as follows: As of December 31, 2020 Company/Facility Total Usage (D) Available Expiration Primary Purpose Millions PSEG 5-year Credit Facilities (A) $ 1,500 $ 665 $ 835 Mar 2024 Commercial Paper Support/Funding/Letters of Credit Total PSEG $ 1,500 $ 665 $ 835 PSE&G 5-year Credit Facility (B) $ 600 $ 117 $ 483 Mar 2024 Commercial Paper Support/Funding/Letters of Credit Total PSE&G $ 600 $ 117 $ 483 PSEG Power 3-year Letter of Credit Facility $ 100 $ 48 $ 52 Sept 2021 Letters of Credit 3-year Letter of Credit Facility 100 81 19 Sept 2022 Letters of Credit 5-year Credit Facilities (C) 1,900 39 1,861 Mar 2024 Funding/Letters of Credit Total PSEG Power $ 2,100 $ 168 $ 1,932 Total $ 4,200 $ 950 $ 3,250 (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 December 31, 2020, PSEG had $663 million outstanding at a weighted average interest rate of 0.33%. PSE&G had $100 million outstanding at a weighted average interest rate of 0.28% under its Commercial Paper Program as of December 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, which was prepaid in January 2021. In April 2020, PSEG entered into two 364-day variable rate term loan agreements for $200 million and $300 million which were prepaid in August 2020. Fair Value of Debt The estimated fair values, carrying amounts and methods used to determine fair value of long-term debt as of December 31, 2020 and 2019 are included in the following table and accompanying notes as of December 31, 2020 and 2019. See Note 19. Fair Value Measurements for more information on fair value guidance and the hierarchy that prioritizes the inputs to fair value measurements into three levels. December 31, 2020 December 31, 2019 Carrying Fair Carrying Fair Millions Long-Term Debt: PSEG (A) (B) $ 2,929 $ 3,092 $ 2,441 $ 2,479 PSE&G (B) 10,909 13,372 9,827 11,107 PSEG Power (B) 2,342 2,679 2,840 3,137 Total Long-Term Debt $ 16,180 $ 19,143 $ 15,108 $ 16,723 (A) Includes a floating-rate term loan of $700 million at PSEG as of December 31, 2019. The fair value of the term loan debt (Level 2 measurement) approximates the carrying value because the interest payments are based on LIBOR rates that are reset monthly and the debt is redeemable at face value by PSEG at any time. |
Schedule Of Consolidated Capita
Schedule Of Consolidated Capital Stock | 12 Months Ended |
Dec. 31, 2020 | |
Class of Stock [Line Items] | |
Schedule of Consolidated Capital Stock | Schedule of Consolidated Capital Stock As of December 31, Outstanding Shares Book Value 2020 2019 2020 2019 Millions PSEG Common Stock (no par value) (A) Authorized 1,000 shares 504 504 $ 4,170 $ 4,172 (A) PSEG did not issue any new shares under the Dividend Reinvestment and Stock Purchase Plan or the Employee Stock Purchase Plan (ESPP) in 2020 or 2019. As of December 31, 2020, PSE&G had an aggregate of 7.5 million shares of $100 par value and 10 million shares of $25 par value Cumulative Preferred Stock, which were authorized and unissued and which, upon issuance, may or may not provide for mandatory sinking fund redemption. |
PSEG Power LLC | |
Class of Stock [Line Items] | |
Schedule of Consolidated Capital Stock | Schedule of Consolidated Capital Stock As of December 31, Outstanding Shares Book Value 2020 2019 2020 2019 Millions PSEG Common Stock (no par value) (A) Authorized 1,000 shares 504 504 $ 4,170 $ 4,172 (A) PSEG did not issue any new shares under the Dividend Reinvestment and Stock Purchase Plan or the Employee Stock Purchase Plan (ESPP) in 2020 or 2019. As of December 31, 2020, PSE&G had an aggregate of 7.5 million shares of $100 par value and 10 million shares of $25 par value Cumulative Preferred Stock, which were authorized and unissued and which, upon issuance, may or may not provide for mandatory sinking fund redemption. |
Public Service Electric and Gas Company | |
Class of Stock [Line Items] | |
Schedule of Consolidated Capital Stock | Schedule of Consolidated Capital Stock As of December 31, Outstanding Shares Book Value 2020 2019 2020 2019 Millions PSEG Common Stock (no par value) (A) Authorized 1,000 shares 504 504 $ 4,170 $ 4,172 (A) PSEG did not issue any new shares under the Dividend Reinvestment and Stock Purchase Plan or the Employee Stock Purchase Plan (ESPP) in 2020 or 2019. As of December 31, 2020, PSE&G had an aggregate of 7.5 million shares of $100 par value and 10 million shares of $25 par value Cumulative Preferred Stock, which were authorized and unissued and which, upon issuance, may or may not provide for mandatory sinking fund redemption. |
Financial Risk Management Activ
Financial Risk Management Activities | 12 Months Ended |
Dec. 31, 2020 | |
Derivative [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 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 15. 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. 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. There were no outstanding interest rate hedges as of December 31, 2020. As of December 31, 2019, PSEG had interest rate hedges outstanding totaling $700 million. These hedges converted PSEG’s $700 million variable-rate term loan due November 2020 into a fixed-rate loan. As of December 31, 2019, the fair value of these hedges was $(5) million. The Accumulated Other Comprehensive Income (Loss) (after tax) related to outstanding and terminated interest rate derivatives designated as cash flow hedges was $(9) million and $(15) million as of December 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 $(3) million. Fair Values of Derivative Instruments The following are the fair values of derivative instruments on the 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 Consolidated Balance Sheets of PSEG Power and PSEG. For additional information see Note 19. Fair Value Measurements. The following tabular disclosure does not include the offsetting of trade receivables and payables. As of December 31, 2020 PSEG Power (A) Consolidated Not Designated Balance Sheet Location Energy- Netting Total Total Millions Derivative Contracts Current Assets $ 464 $ (404) $ 60 $ 60 Noncurrent Assets 93 (84) 9 9 Total Mark-to-Market Derivative Assets $ 557 $ (488) $ 69 $ 69 Derivative Contracts Current Liabilities $ (412) $ 391 $ (21) $ (21) Noncurrent Liabilities (109) 105 (4) (4) Total Mark-to-Market Derivative (Liabilities) $ (521) $ 496 $ (25) $ (25) Total Net Mark-to-Market Derivative Assets (Liabilities) $ 36 $ 8 $ 44 $ 44 As of December 31, 2019 PSEG Power (A) PSEG (A) Consolidated Not Designated Cash Flow Balance Sheet Location Energy- Netting Total Interest Total 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 December 31, 2020 and 2019. (B) Represents the netting of fair value balances with the same counterparty (where the right of offset exists) and the application of cash collateral. All cash collateral (received) posted that has been allocated to derivative positions, where the right of offset exists, has been offset on the Consolidated Balance Sheets. As of December 31, 2020 and 2019, PSEG Power had net cash collateral payments to counterparties of $54 million and $44 million, respectively. Of these net cash collateral (receipts) payments, $8 million as of December 31, 2020 and $(2) million as of December 31, 2019 were netted against the corresponding net derivative contract positions. Of the $8 million as of December 31, 2020, $(13) million was netted against current assets, and $21 million was netted against noncurrent liabilities. 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 $28 million and $35 million as of December 31, 2020 and 2019, respectively. As of December 31, 2020 and 2019, PSEG Power had the contractual right of offset of $3 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 $25 million and $33 million as of December 31, 2020 and 2019, respectively, 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 Consolidated Statements of Operations and on Accumulated Other Comprehensive Loss (AOCL) of derivative instruments designated as cash flow hedges for the years ended December 31, 2020, 2019 and 2018. Amount of Pre-Tax Location of Amount of Pre-Tax Derivatives in Cash Flow Hedging Relationships Years Ended Years Ended 2020 2019 2018 2020 2019 2018 Millions Millions PSEG Interest Rate Swaps $ (6) $ (23) $ (2) Interest Expense $ (14) $ (4) $ — Total PSEG $ (6) $ (23) $ (2) $ (14) $ (4) $ — The effect of interest rate cash flow hedges is recorded in Interest Expense in PSEG’s Consolidated Statement of Operations. For the year ended December 31, 2020, the amount of gain or loss on interest rate hedges reclassified from Accumulated Other Comprehensive Income (Loss) into income was $(10) million and $(3) million after tax as of December 31, 2020 and 2019, respectively and immaterial as of December 31, 2018. The following reconciles the Accumulated Other Comprehensive Income (Loss) for derivative activity included in the AOCL 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 14 10 Balance as of December 31, 2020 $ (13) $ (9) The following shows the effect on the Consolidated Statements of Operations of derivative instruments not designated as hedging instruments or as NPNS for the years ended December 31, 2020, 2019 and 2018. 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 Pre-Tax Gain (Loss) Years Ended December 31, 2020 2019 2018 Millions PSEG Power Energy-Related Contracts Operating Revenues $ 279 $ 560 $ (182) Energy-Related Contracts Energy Costs (142) (119) (9) Total PSEG and PSEG Power $ 137 $ 441 $ (191) The following table summarizes the net notional volume purchases/(sales) of open derivative transactions by commodity as of December 31, 2020 and 2019. Type Notional Total PSEG PSEG Power PSE&G Millions As of December 31, 2020 Natural Gas Dekatherm (Dth) 321 — 321 — Electricity MWh (66) — (66) — Financial Transmission Rights (FTRs) MWh 20 — 20 — 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 December 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 December 31, 2020, 88% 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 Securities Net Number of Net Exposure of Millions Millions Investment Grade $ 337 $ 39 $ 298 1 $ 169 Non-Investment Grade 40 — 40 1 40 Total $ 377 $ 39 $ 338 2 $ 209 (A) Represents net exposure of $169 million with PSE&G and $40 million with a non-affiliated counterparty. As of December 31, 2020, collateral held from counterparties where PSEG Power had credit exposure includes $4 million in cash and $35 million in letters of credit. As of December 31, 2020, PSEG Power had 135 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 December 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 December 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 | |
Derivative [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 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 15. 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. 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. There were no outstanding interest rate hedges as of December 31, 2020. As of December 31, 2019, PSEG had interest rate hedges outstanding totaling $700 million. These hedges converted PSEG’s $700 million variable-rate term loan due November 2020 into a fixed-rate loan. As of December 31, 2019, the fair value of these hedges was $(5) million. The Accumulated Other Comprehensive Income (Loss) (after tax) related to outstanding and terminated interest rate derivatives designated as cash flow hedges was $(9) million and $(15) million as of December 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 $(3) million. Fair Values of Derivative Instruments The following are the fair values of derivative instruments on the 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 Consolidated Balance Sheets of PSEG Power and PSEG. For additional information see Note 19. Fair Value Measurements. The following tabular disclosure does not include the offsetting of trade receivables and payables. As of December 31, 2020 PSEG Power (A) Consolidated Not Designated Balance Sheet Location Energy- Netting Total Total Millions Derivative Contracts Current Assets $ 464 $ (404) $ 60 $ 60 Noncurrent Assets 93 (84) 9 9 Total Mark-to-Market Derivative Assets $ 557 $ (488) $ 69 $ 69 Derivative Contracts Current Liabilities $ (412) $ 391 $ (21) $ (21) Noncurrent Liabilities (109) 105 (4) (4) Total Mark-to-Market Derivative (Liabilities) $ (521) $ 496 $ (25) $ (25) Total Net Mark-to-Market Derivative Assets (Liabilities) $ 36 $ 8 $ 44 $ 44 As of December 31, 2019 PSEG Power (A) PSEG (A) Consolidated Not Designated Cash Flow Balance Sheet Location Energy- Netting Total Interest Total 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 December 31, 2020 and 2019. (B) Represents the netting of fair value balances with the same counterparty (where the right of offset exists) and the application of cash collateral. All cash collateral (received) posted that has been allocated to derivative positions, where the right of offset exists, has been offset on the Consolidated Balance Sheets. As of December 31, 2020 and 2019, PSEG Power had net cash collateral payments to counterparties of $54 million and $44 million, respectively. Of these net cash collateral (receipts) payments, $8 million as of December 31, 2020 and $(2) million as of December 31, 2019 were netted against the corresponding net derivative contract positions. Of the $8 million as of December 31, 2020, $(13) million was netted against current assets, and $21 million was netted against noncurrent liabilities. 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 $28 million and $35 million as of December 31, 2020 and 2019, respectively. As of December 31, 2020 and 2019, PSEG Power had the contractual right of offset of $3 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 $25 million and $33 million as of December 31, 2020 and 2019, respectively, 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 Consolidated Statements of Operations and on Accumulated Other Comprehensive Loss (AOCL) of derivative instruments designated as cash flow hedges for the years ended December 31, 2020, 2019 and 2018. Amount of Pre-Tax Location of Amount of Pre-Tax Derivatives in Cash Flow Hedging Relationships Years Ended Years Ended 2020 2019 2018 2020 2019 2018 Millions Millions PSEG Interest Rate Swaps $ (6) $ (23) $ (2) Interest Expense $ (14) $ (4) $ — Total PSEG $ (6) $ (23) $ (2) $ (14) $ (4) $ — The effect of interest rate cash flow hedges is recorded in Interest Expense in PSEG’s Consolidated Statement of Operations. For the year ended December 31, 2020, the amount of gain or loss on interest rate hedges reclassified from Accumulated Other Comprehensive Income (Loss) into income was $(10) million and $(3) million after tax as of December 31, 2020 and 2019, respectively and immaterial as of December 31, 2018. The following reconciles the Accumulated Other Comprehensive Income (Loss) for derivative activity included in the AOCL 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 14 10 Balance as of December 31, 2020 $ (13) $ (9) The following shows the effect on the Consolidated Statements of Operations of derivative instruments not designated as hedging instruments or as NPNS for the years ended December 31, 2020, 2019 and 2018. 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 Pre-Tax Gain (Loss) Years Ended December 31, 2020 2019 2018 Millions PSEG Power Energy-Related Contracts Operating Revenues $ 279 $ 560 $ (182) Energy-Related Contracts Energy Costs (142) (119) (9) Total PSEG and PSEG Power $ 137 $ 441 $ (191) The following table summarizes the net notional volume purchases/(sales) of open derivative transactions by commodity as of December 31, 2020 and 2019. Type Notional Total PSEG PSEG Power PSE&G Millions As of December 31, 2020 Natural Gas Dekatherm (Dth) 321 — 321 — Electricity MWh (66) — (66) — Financial Transmission Rights (FTRs) MWh 20 — 20 — 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 December 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 December 31, 2020, 88% 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 Securities Net Number of Net Exposure of Millions Millions Investment Grade $ 337 $ 39 $ 298 1 $ 169 Non-Investment Grade 40 — 40 1 40 Total $ 377 $ 39 $ 338 2 $ 209 (A) Represents net exposure of $169 million with PSE&G and $40 million with a non-affiliated counterparty. As of December 31, 2020, collateral held from counterparties where PSEG Power had credit exposure includes $4 million in cash and $35 million in letters of credit. As of December 31, 2020, PSEG Power had 135 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 December 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 December 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 LLC | |
Derivative [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 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 15. 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. 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. There were no outstanding interest rate hedges as of December 31, 2020. As of December 31, 2019, PSEG had interest rate hedges outstanding totaling $700 million. These hedges converted PSEG’s $700 million variable-rate term loan due November 2020 into a fixed-rate loan. As of December 31, 2019, the fair value of these hedges was $(5) million. The Accumulated Other Comprehensive Income (Loss) (after tax) related to outstanding and terminated interest rate derivatives designated as cash flow hedges was $(9) million and $(15) million as of December 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 $(3) million. Fair Values of Derivative Instruments The following are the fair values of derivative instruments on the 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 Consolidated Balance Sheets of PSEG Power and PSEG. For additional information see Note 19. Fair Value Measurements. The following tabular disclosure does not include the offsetting of trade receivables and payables. As of December 31, 2020 PSEG Power (A) Consolidated Not Designated Balance Sheet Location Energy- Netting Total Total Millions Derivative Contracts Current Assets $ 464 $ (404) $ 60 $ 60 Noncurrent Assets 93 (84) 9 9 Total Mark-to-Market Derivative Assets $ 557 $ (488) $ 69 $ 69 Derivative Contracts Current Liabilities $ (412) $ 391 $ (21) $ (21) Noncurrent Liabilities (109) 105 (4) (4) Total Mark-to-Market Derivative (Liabilities) $ (521) $ 496 $ (25) $ (25) Total Net Mark-to-Market Derivative Assets (Liabilities) $ 36 $ 8 $ 44 $ 44 As of December 31, 2019 PSEG Power (A) PSEG (A) Consolidated Not Designated Cash Flow Balance Sheet Location Energy- Netting Total Interest Total 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 December 31, 2020 and 2019. (B) Represents the netting of fair value balances with the same counterparty (where the right of offset exists) and the application of cash collateral. All cash collateral (received) posted that has been allocated to derivative positions, where the right of offset exists, has been offset on the Consolidated Balance Sheets. As of December 31, 2020 and 2019, PSEG Power had net cash collateral payments to counterparties of $54 million and $44 million, respectively. Of these net cash collateral (receipts) payments, $8 million as of December 31, 2020 and $(2) million as of December 31, 2019 were netted against the corresponding net derivative contract positions. Of the $8 million as of December 31, 2020, $(13) million was netted against current assets, and $21 million was netted against noncurrent liabilities. 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 $28 million and $35 million as of December 31, 2020 and 2019, respectively. As of December 31, 2020 and 2019, PSEG Power had the contractual right of offset of $3 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 $25 million and $33 million as of December 31, 2020 and 2019, respectively, 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 Consolidated Statements of Operations and on Accumulated Other Comprehensive Loss (AOCL) of derivative instruments designated as cash flow hedges for the years ended December 31, 2020, 2019 and 2018. Amount of Pre-Tax Location of Amount of Pre-Tax Derivatives in Cash Flow Hedging Relationships Years Ended Years Ended 2020 2019 2018 2020 2019 2018 Millions Millions PSEG Interest Rate Swaps $ (6) $ (23) $ (2) Interest Expense $ (14) $ (4) $ — Total PSEG $ (6) $ (23) $ (2) $ (14) $ (4) $ — The effect of interest rate cash flow hedges is recorded in Interest Expense in PSEG’s Consolidated Statement of Operations. For the year ended December 31, 2020, the amount of gain or loss on interest rate hedges reclassified from Accumulated Other Comprehensive Income (Loss) into income was $(10) million and $(3) million after tax as of December 31, 2020 and 2019, respectively and immaterial as of December 31, 2018. The following reconciles the Accumulated Other Comprehensive Income (Loss) for derivative activity included in the AOCL 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 14 10 Balance as of December 31, 2020 $ (13) $ (9) The following shows the effect on the Consolidated Statements of Operations of derivative instruments not designated as hedging instruments or as NPNS for the years ended December 31, 2020, 2019 and 2018. 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 Pre-Tax Gain (Loss) Years Ended December 31, 2020 2019 2018 Millions PSEG Power Energy-Related Contracts Operating Revenues $ 279 $ 560 $ (182) Energy-Related Contracts Energy Costs (142) (119) (9) Total PSEG and PSEG Power $ 137 $ 441 $ (191) The following table summarizes the net notional volume purchases/(sales) of open derivative transactions by commodity as of December 31, 2020 and 2019. Type Notional Total PSEG PSEG Power PSE&G Millions As of December 31, 2020 Natural Gas Dekatherm (Dth) 321 — 321 — Electricity MWh (66) — (66) — Financial Transmission Rights (FTRs) MWh 20 — 20 — 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 December 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 December 31, 2020, 88% 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 Securities Net Number of Net Exposure of Millions Millions Investment Grade $ 337 $ 39 $ 298 1 $ 169 Non-Investment Grade 40 — 40 1 40 Total $ 377 $ 39 $ 338 2 $ 209 (A) Represents net exposure of $169 million with PSE&G and $40 million with a non-affiliated counterparty. As of December 31, 2020, collateral held from counterparties where PSEG Power had credit exposure includes $4 million in cash and $35 million in letters of credit. As of December 31, 2020, PSEG Power had 135 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 December 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 December 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. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [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 December 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 December 31, 2020 Description Total Netting (D) Quoted Market Prices for Identical Assets Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs Millions PSEG Assets: Cash Equivalents (A) $ 312 $ — $ 312 $ — $ — Derivative Contracts: Energy-Related Contracts (B) $ 69 $ (488) $ 26 $ 519 $ 12 NDT Fund (C) Equity Securities $ 1,352 $ — $ 1,351 $ 1 $ — Debt Securities—U.S. Treasury $ 239 $ — $ — $ 239 $ — Debt Securities—Govt Other $ 342 $ — $ — $ 342 $ — Debt Securities—Corporate $ 566 $ — $ — $ 566 $ — Rabbi Trust (C) Equity Securities $ 31 $ — $ 31 $ — $ — Debt Securities—U.S. Treasury $ 59 $ — $ — $ 59 $ — Debt Securities—Govt Other $ 41 $ — $ — $ 41 $ — Debt Securities—Corporate $ 135 $ — $ — $ 135 $ — Liabilities: Derivative Contracts: Energy-Related Contracts (B) $ (25) $ 496 $ (33) $ (483) $ (5) PSE&G Assets: Cash Equivalents (A) $ 50 $ — $ 50 $ — $ — Rabbi Trust (C) Equity Securities $ 6 $ — $ 6 $ — $ — Debt Securities—U.S. Treasury $ 11 $ — $ — $ 11 $ — Debt Securities—Govt Other $ 8 $ — $ — $ 8 $ — Debt Securities—Corporate $ 26 $ — $ — $ 26 $ — PSEG Power Assets: Derivative Contracts: Energy-Related Contracts (B) $ 69 $ (488) $ 26 $ 519 $ 12 NDT Fund (C) Equity Securities $ 1,352 $ — $ 1,351 $ 1 $ — Debt Securities—U.S. Treasury $ 239 $ — $ — $ 239 $ — Debt Securities—Govt Other $ 342 $ — $ — $ 342 $ — Debt Securities—Corporate $ 566 $ — $ — $ 566 $ — Rabbi Trust (C) Equity Securities $ 8 $ — $ 8 $ — $ — Debt Securities—U.S. Treasury $ 15 $ — $ — $ 15 $ — Debt Securities—Govt Other $ 10 $ — $ — $ 10 $ — Debt Securities—Corporate $ 33 $ — $ — $ 33 $ — Liabilities: Derivative Contracts: Energy-Related Contracts (B) $ (25) $ 496 $ (33) $ (483) $ (5) Recurring Fair Value Measurements as of December 31, 2019 Description Total Netting (D) Quoted Market Prices for Identical Assets Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs 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 (E) $ (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, 2020 and 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) Represents the netting of fair value balances with the same counterparty (where the right of offset exists) and the application of collateral. See Note 18. Financial Risk Management Activities for additional detail. (E) 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. 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 non-performance 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 non-performance risk by counterparty. The impacts of credit and non-performance 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 December 31, 2020 and 2019. Quantitative Information About Level 3 Fair Value Measurements Commodity Level 3 Position Fair Value as of December 31, 2020 Valuation Significant Range Arithmetic Average Assets (Liabilities) Millions PSEG Power Electricity Electric Load Contracts $ 12 $ — Discounted Cash flow Load Shaping Cost 0% to 11% 4% Gas Gas Physical Contracts — (2) Discounted Cash flow Historical Basis Adjustment ' -60% to -30% -43% Electricity Other (A) — (3) Total PSEG Power $ 12 $ (5) Total PSEG $ 12 $ (5) Quantitative Information About Level 3 Fair Value Measurements Commodity Level 3 Position Fair Value as of December 31, 2019 Valuation Significant 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) (A) Other is comprised of a heat rate call option and capacity swaps. As of December 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 years ended December 31, 2020 and 2019, respectively, follows: Changes in Level 3 Assets and (Liabilities) Measured at Fair Value on a Recurring Basis for the Year Ended December 31, 2020 Description Balance as of December 31, 2019 Total Gains or (Losses) Purchases, Issuances/ Transfers Balance as of December 31, 2020 PSEG and PSEG Power Net Derivative Assets (Liabilities) $ 7 $ 16 $ — $ (16) $ — $ 7 Changes in Level 3 Assets and (Liabilities) Measured at Fair Value on a Recurring Basis for the Year Ended December 31, 2019 Description Balance as of December 31, 2018 Total Gains or (Losses) Purchases, (Sales) Issuances/ Settlements (B) Transfers In/Out (C) Balance as of December 31, 2019 Millions PSEG and PSEG Power Net Derivative Assets (Liabilities) $ 1 $ 14 $ — $ (8) $ — $ 7 (A) Unrealized gains (losses) in the following table represent the change in derivative assets and liabilities still held as of December 31, 2020 and 2019. Years Ended December 31, 2020 2019 Total Gains (Losses) Unrealized Gains (Losses) Total Gains (Losses) Unrealized Gains (Losses) Millions PSEG and PSEG Power Operating Revenues $ 26 $ 1 $ 23 $ 12 Energy Costs (10) 1 (9) (6) Total $ 16 $ 2 $ 14 $ 6 (B) Includes $(14) million and $(7) million in settlements for derivative contracts in 2020 and 2019. (C) There were no transfers in 2020 and 2019 to or from Level 3. As of December 31, 2020, PSEG carried $3.1 billion of net assets that are measured at fair value on a recurring basis, of which $7 million of net assets were measured using unobservable inputs and classified as Level 3 within the fair value hierarchy. As of December 31, 2019, PSEG carried $2.6 billion of net assets that are measured at fair value on a recurring basis, of which $7 million of net assets were measured using unobservable inputs and classified as Level 3 within the fair value hierarchy. |
Public Service Electric and Gas Company | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [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 December 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 December 31, 2020 Description Total Netting (D) Quoted Market Prices for Identical Assets Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs Millions PSEG Assets: Cash Equivalents (A) $ 312 $ — $ 312 $ — $ — Derivative Contracts: Energy-Related Contracts (B) $ 69 $ (488) $ 26 $ 519 $ 12 NDT Fund (C) Equity Securities $ 1,352 $ — $ 1,351 $ 1 $ — Debt Securities—U.S. Treasury $ 239 $ — $ — $ 239 $ — Debt Securities—Govt Other $ 342 $ — $ — $ 342 $ — Debt Securities—Corporate $ 566 $ — $ — $ 566 $ — Rabbi Trust (C) Equity Securities $ 31 $ — $ 31 $ — $ — Debt Securities—U.S. Treasury $ 59 $ — $ — $ 59 $ — Debt Securities—Govt Other $ 41 $ — $ — $ 41 $ — Debt Securities—Corporate $ 135 $ — $ — $ 135 $ — Liabilities: Derivative Contracts: Energy-Related Contracts (B) $ (25) $ 496 $ (33) $ (483) $ (5) PSE&G Assets: Cash Equivalents (A) $ 50 $ — $ 50 $ — $ — Rabbi Trust (C) Equity Securities $ 6 $ — $ 6 $ — $ — Debt Securities—U.S. Treasury $ 11 $ — $ — $ 11 $ — Debt Securities—Govt Other $ 8 $ — $ — $ 8 $ — Debt Securities—Corporate $ 26 $ — $ — $ 26 $ — PSEG Power Assets: Derivative Contracts: Energy-Related Contracts (B) $ 69 $ (488) $ 26 $ 519 $ 12 NDT Fund (C) Equity Securities $ 1,352 $ — $ 1,351 $ 1 $ — Debt Securities—U.S. Treasury $ 239 $ — $ — $ 239 $ — Debt Securities—Govt Other $ 342 $ — $ — $ 342 $ — Debt Securities—Corporate $ 566 $ — $ — $ 566 $ — Rabbi Trust (C) Equity Securities $ 8 $ — $ 8 $ — $ — Debt Securities—U.S. Treasury $ 15 $ — $ — $ 15 $ — Debt Securities—Govt Other $ 10 $ — $ — $ 10 $ — Debt Securities—Corporate $ 33 $ — $ — $ 33 $ — Liabilities: Derivative Contracts: Energy-Related Contracts (B) $ (25) $ 496 $ (33) $ (483) $ (5) Recurring Fair Value Measurements as of December 31, 2019 Description Total Netting (D) Quoted Market Prices for Identical Assets Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs 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 (E) $ (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, 2020 and 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) Represents the netting of fair value balances with the same counterparty (where the right of offset exists) and the application of collateral. See Note 18. Financial Risk Management Activities for additional detail. (E) 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. 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 non-performance 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 non-performance risk by counterparty. The impacts of credit and non-performance 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 December 31, 2020 and 2019. Quantitative Information About Level 3 Fair Value Measurements Commodity Level 3 Position Fair Value as of December 31, 2020 Valuation Significant Range Arithmetic Average Assets (Liabilities) Millions PSEG Power Electricity Electric Load Contracts $ 12 $ — Discounted Cash flow Load Shaping Cost 0% to 11% 4% Gas Gas Physical Contracts — (2) Discounted Cash flow Historical Basis Adjustment ' -60% to -30% -43% Electricity Other (A) — (3) Total PSEG Power $ 12 $ (5) Total PSEG $ 12 $ (5) Quantitative Information About Level 3 Fair Value Measurements Commodity Level 3 Position Fair Value as of December 31, 2019 Valuation Significant 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) (A) Other is comprised of a heat rate call option and capacity swaps. As of December 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 years ended December 31, 2020 and 2019, respectively, follows: Changes in Level 3 Assets and (Liabilities) Measured at Fair Value on a Recurring Basis for the Year Ended December 31, 2020 Description Balance as of December 31, 2019 Total Gains or (Losses) Purchases, Issuances/ Transfers Balance as of December 31, 2020 PSEG and PSEG Power Net Derivative Assets (Liabilities) $ 7 $ 16 $ — $ (16) $ — $ 7 Changes in Level 3 Assets and (Liabilities) Measured at Fair Value on a Recurring Basis for the Year Ended December 31, 2019 Description Balance as of December 31, 2018 Total Gains or (Losses) Purchases, (Sales) Issuances/ Settlements (B) Transfers In/Out (C) Balance as of December 31, 2019 Millions PSEG and PSEG Power Net Derivative Assets (Liabilities) $ 1 $ 14 $ — $ (8) $ — $ 7 (A) Unrealized gains (losses) in the following table represent the change in derivative assets and liabilities still held as of December 31, 2020 and 2019. Years Ended December 31, 2020 2019 Total Gains (Losses) Unrealized Gains (Losses) Total Gains (Losses) Unrealized Gains (Losses) Millions PSEG and PSEG Power Operating Revenues $ 26 $ 1 $ 23 $ 12 Energy Costs (10) 1 (9) (6) Total $ 16 $ 2 $ 14 $ 6 (B) Includes $(14) million and $(7) million in settlements for derivative contracts in 2020 and 2019. (C) There were no transfers in 2020 and 2019 to or from Level 3. As of December 31, 2020, PSEG carried $3.1 billion of net assets that are measured at fair value on a recurring basis, of which $7 million of net assets were measured using unobservable inputs and classified as Level 3 within the fair value hierarchy. As of December 31, 2019, PSEG carried $2.6 billion of net assets that are measured at fair value on a recurring basis, of which $7 million of net assets were measured using unobservable inputs and classified as Level 3 within the fair value hierarchy. |
PSEG Power LLC | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [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 December 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 December 31, 2020 Description Total Netting (D) Quoted Market Prices for Identical Assets Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs Millions PSEG Assets: Cash Equivalents (A) $ 312 $ — $ 312 $ — $ — Derivative Contracts: Energy-Related Contracts (B) $ 69 $ (488) $ 26 $ 519 $ 12 NDT Fund (C) Equity Securities $ 1,352 $ — $ 1,351 $ 1 $ — Debt Securities—U.S. Treasury $ 239 $ — $ — $ 239 $ — Debt Securities—Govt Other $ 342 $ — $ — $ 342 $ — Debt Securities—Corporate $ 566 $ — $ — $ 566 $ — Rabbi Trust (C) Equity Securities $ 31 $ — $ 31 $ — $ — Debt Securities—U.S. Treasury $ 59 $ — $ — $ 59 $ — Debt Securities—Govt Other $ 41 $ — $ — $ 41 $ — Debt Securities—Corporate $ 135 $ — $ — $ 135 $ — Liabilities: Derivative Contracts: Energy-Related Contracts (B) $ (25) $ 496 $ (33) $ (483) $ (5) PSE&G Assets: Cash Equivalents (A) $ 50 $ — $ 50 $ — $ — Rabbi Trust (C) Equity Securities $ 6 $ — $ 6 $ — $ — Debt Securities—U.S. Treasury $ 11 $ — $ — $ 11 $ — Debt Securities—Govt Other $ 8 $ — $ — $ 8 $ — Debt Securities—Corporate $ 26 $ — $ — $ 26 $ — PSEG Power Assets: Derivative Contracts: Energy-Related Contracts (B) $ 69 $ (488) $ 26 $ 519 $ 12 NDT Fund (C) Equity Securities $ 1,352 $ — $ 1,351 $ 1 $ — Debt Securities—U.S. Treasury $ 239 $ — $ — $ 239 $ — Debt Securities—Govt Other $ 342 $ — $ — $ 342 $ — Debt Securities—Corporate $ 566 $ — $ — $ 566 $ — Rabbi Trust (C) Equity Securities $ 8 $ — $ 8 $ — $ — Debt Securities—U.S. Treasury $ 15 $ — $ — $ 15 $ — Debt Securities—Govt Other $ 10 $ — $ — $ 10 $ — Debt Securities—Corporate $ 33 $ — $ — $ 33 $ — Liabilities: Derivative Contracts: Energy-Related Contracts (B) $ (25) $ 496 $ (33) $ (483) $ (5) Recurring Fair Value Measurements as of December 31, 2019 Description Total Netting (D) Quoted Market Prices for Identical Assets Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs 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 (E) $ (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, 2020 and 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) Represents the netting of fair value balances with the same counterparty (where the right of offset exists) and the application of collateral. See Note 18. Financial Risk Management Activities for additional detail. (E) 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. 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 non-performance 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 non-performance risk by counterparty. The impacts of credit and non-performance 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 December 31, 2020 and 2019. Quantitative Information About Level 3 Fair Value Measurements Commodity Level 3 Position Fair Value as of December 31, 2020 Valuation Significant Range Arithmetic Average Assets (Liabilities) Millions PSEG Power Electricity Electric Load Contracts $ 12 $ — Discounted Cash flow Load Shaping Cost 0% to 11% 4% Gas Gas Physical Contracts — (2) Discounted Cash flow Historical Basis Adjustment ' -60% to -30% -43% Electricity Other (A) — (3) Total PSEG Power $ 12 $ (5) Total PSEG $ 12 $ (5) Quantitative Information About Level 3 Fair Value Measurements Commodity Level 3 Position Fair Value as of December 31, 2019 Valuation Significant 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) (A) Other is comprised of a heat rate call option and capacity swaps. As of December 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 years ended December 31, 2020 and 2019, respectively, follows: Changes in Level 3 Assets and (Liabilities) Measured at Fair Value on a Recurring Basis for the Year Ended December 31, 2020 Description Balance as of December 31, 2019 Total Gains or (Losses) Purchases, Issuances/ Transfers Balance as of December 31, 2020 PSEG and PSEG Power Net Derivative Assets (Liabilities) $ 7 $ 16 $ — $ (16) $ — $ 7 Changes in Level 3 Assets and (Liabilities) Measured at Fair Value on a Recurring Basis for the Year Ended December 31, 2019 Description Balance as of December 31, 2018 Total Gains or (Losses) Purchases, (Sales) Issuances/ Settlements (B) Transfers In/Out (C) Balance as of December 31, 2019 Millions PSEG and PSEG Power Net Derivative Assets (Liabilities) $ 1 $ 14 $ — $ (8) $ — $ 7 (A) Unrealized gains (losses) in the following table represent the change in derivative assets and liabilities still held as of December 31, 2020 and 2019. Years Ended December 31, 2020 2019 Total Gains (Losses) Unrealized Gains (Losses) Total Gains (Losses) Unrealized Gains (Losses) Millions PSEG and PSEG Power Operating Revenues $ 26 $ 1 $ 23 $ 12 Energy Costs (10) 1 (9) (6) Total $ 16 $ 2 $ 14 $ 6 (B) Includes $(14) million and $(7) million in settlements for derivative contracts in 2020 and 2019. (C) There were no transfers in 2020 and 2019 to or from Level 3. As of December 31, 2020, PSEG carried $3.1 billion of net assets that are measured at fair value on a recurring basis, of which $7 million of net assets were measured using unobservable inputs and classified as Level 3 within the fair value hierarchy. As of December 31, 2019, PSEG carried $2.6 billion of net assets that are measured at fair value on a recurring basis, of which $7 million of net assets were measured using unobservable inputs and classified as Level 3 within the fair value hierarchy. |
Stock Based Compensation
Stock Based Compensation | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock Based Compensation | Stock Based Compensation PSEG’s Amended and Restated 2004 Long-Term Incentive Plan (LTIP) is a broad-based equity compensation program that provides for grants of various long-term incentive compensation awards, such as stock options, stock appreciation rights, performance share units, restricted stock, restricted stock units, cash awards or any combination thereof. The types of long-term incentive awards that have been granted under the LTIP are non-qualified options to purchase shares of PSEG’s common stock, restricted stock unit awards and performance share unit awards. The type of equity award that is granted and the details of that award may vary from time to time and is subject to the approval of the Organization and Compensation Committee of PSEG’s Board of Directors (O&CC), the LTIP’s administrative committee. The LTIP currently provides for the issuance of equity awards with respect to approximately 16 million shares of common stock. As of December 31, 2020, there were approximately 13 million shares available for future awards under the LTIP. Stock Options Under the LTIP, non-qualified options to acquire shares of PSEG common stock may be granted to officers and other key employees selected by the O&CC. Option awards are granted with an exercise price equal to the market price of PSEG’s common stock at the grant date. The options generally vest over four years of continuous service. Vesting schedules may be accelerated upon the occurrence of certain events, such as a change-in-control (unless substituted with an equity award of equal value), retirement, death or disability. Options are exercisable over a period of time designated by the O&CC (but not prior to one year or longer than ten years from the date of grant) and are subject to such other terms and conditions as the O&CC determines. Payment by option holders upon exercise of an option may be made in cash or, with the consent of the O&CC, by delivering previously acquired shares of PSEG common stock. No options have been granted since 2009. Restricted Stock Units (RSUs) Under the LTIP, PSEG has granted RSU awards to officers and other key employees. These awards, which are bookkeeping entries only, are subject to risk of forfeiture until vested by continued employment. Until distributed, the units are credited with dividend equivalent units (DEUs) proportionate to the dividends paid on PSEG common stock. Distributions are made in shares of common stock. The RSU grants for 2020 and 2019 generally vest at the end of three years. Vesting may be accelerated (pro-rated basis or full vesting) upon certain events such as change-in-control, retirement, disability or death. Performance Share Units (PSUs) Under the LTIP, PSEG has granted PSUs to officers and other key employees. These provide for distribution in shares of PSEG common stock based on achievement of certain financial goals over a three Stock-Based Compensation PSEG recognizes compensation expense for stock options based on their grant date fair values, which are determined using the Black-Scholes option-pricing model. Stock option awards are expensed on a tranche-specific basis over the requisite service period of the award. Ultimately, compensation expense for stock options is recognized for awards that vest. PSEG recognizes compensation expense for RSUs over the vesting period based on the grant date fair value of the shares, which is equal to the closing market price of PSEG’s common stock on the date of the grant. PSEG recognizes compensation expense for the total shareholder return (TSR) target for its PSU awards based on the grant date fair values of the award, which are determined using the Monte Carlo model. The following table provides the assumptions used to calculate the grant date fair value of the TSR portion of the PSU awards for 2020, 2019 and 2018: Grant Date Risk-Free Interest Rate Volatility February 18, 2020 1.36% 15.00% February 19, 2019 2.47% 16.74% February 20, 2018 2.36% 17.57% The accrual of compensation cost is based on the probable achievement of the performance conditions, which result in a payout from 0% to 200% of the initial grant. PSEG recognizes compensation expense for the return on invested capital target for its PSUs based on the grant date fair value of the awards, which is equal to the market price of PSEG’s common stock on the date of the grant. The accrual during the year of grant is estimated at 100% of the original grant. Such accrual may be adjusted to reflect the actual outcome. 2020 2019 2018 Millions Compensation Cost included in O&M Expense $ 35 $ 33 $ 30 Income Tax Benefit Recognized in Consolidated Statement of Operations $ 10 $ 9 $ 9 For 2020, 2019 and 2018, PSEG also recorded excess tax benefits of $2 million, $5 million and $3 million, respectively. PSEG recognizes compensation cost of awards issued over the shorter of the original vesting period or the period beginning on the date of grant and ending on the date an individual is eligible for retirement and the award vests. Stock Options As of January 1, 2019, there were 231,933 stock options outstanding, all of which were exercised in 2019 at a weighted average price of $33.49. There were no stock options granted or vested in 2020, 2019 and 2018. Activity for options exercised for the years ended December 31, 2020, 2019 and 2018 is shown below: 2020 2019 2018 Millions Total Intrinsic Value of Options Exercised $ — $ 5 $ 2 Cash Received from Options Exercised $ — $ 8 $ 4 Tax Benefit Realized from Options Exercised $ — $ 1 $ — RSUs Changes in RSUs for the year ended December 31, 2020 are summarized as follows: Shares Weighted Weighted Average Aggregate Non-vested as of January 1, 2020 214,981 $ 50.41 Granted 219,749 $ 58.85 Vested 203,032 $ 55.20 Canceled/Forfeited 8,800 $ 54.13 Non-vested as of December 31, 2020 222,898 $ 54.21 0.9 $ 12,994,953 The weighted average grant date fair value per share for RSUs during the years ended December 31, 2020, 2019 and 2018 was $58.85, $56.24 and $49.34 per share, respectively. The total intrinsic value of RSUs distributed during the years ended December 31, 2020, 2019 and 2018 was $11 million, $16 million and $12 million, respectively. As of December 31, 2020, there was approximately $4 million of unrecognized compensation cost related to the RSUs, which is expected to be recognized over a weighted average period of 0.9 years. DEUs of 25,920 accrued on the RSUs during the year. PSUs Changes in PSUs for the year ended December 31, 2020 are summarized as follows: Shares Weighted Weighted Average Aggregate Non-vested as of January 1, 2020 334,515 $ 59.30 Granted 447,815 $ 51.79 Vested 285,977 $ 54.96 Canceled/Forfeited 20,512 $ 58.37 Non-vested as of December 31, 2020 475,841 $ 54.88 1.7 $ 27,741,530 The weighted average grant date fair value per share for PSUs during the years ended December 31, 2020, 2019 and 2018 was $51.79, $62.17 and $54.95 per share, respectively. The total intrinsic value of PSUs distributed during the years ended December 31, 2020, 2019 and 2018 was $19 million, $17 million and $17 million, respectively. As of December 31, 2020, there was approximately $24 million of unrecognized compensation cost related to the PSUs, which is expected to be recognized over a weighted average period of 1.7 years. DEUs of 42,925 accrued on the PSUs during the year. Outside Directors Under the Directors Equity Plan, annually, on the first business day of May, each non-employee member of the Board of Directors is awarded stock units based on the amount of annual compensation to be paid at the closing price of PSEG common stock on that date. DEUs are credited quarterly and distributions will occur as specified by their election in accordance with the provisions of the Directors Equity Plan. The fair value of these awards is recorded as compensation expense in the Consolidated Statements of Operations. Compensation expense for the plan was immaterial for each of the years ended December 31, 2020, 2019 and 2018. ESPP PSEG maintains an ESPP for all eligible employees of PSEG and its subsidiaries. Under the ESPP, shares of PSEG common stock may be purchased at 95% of the fair market value for represented employees and 90% for non-represented employees through payroll deductions. Dividends are to be paid out in cash unless the participant elects the dividends to be reinvested at fair market price. All employees are required to hold the shares purchased under the ESPP for at least three months from the purchase date. In any year, employees may purchase shares having a value not exceeding 10% of their base pay. Compensation expense recognized under this program was $1 million for the years ended December 31, 2020 and 2019 and immaterial for the year ended December 31, 2018. During the years ended December 31, 2020, 2019 and 2018, employees purchased 373,682 shares, 280,077 shares and 286,559 shares, respectively, at an average price of $47.26, $54.67 and $47.44 per share, respectively. As of December 31, 2020, 2.2 million shares were available for future issuance under this plan. |
Public Service Electric and Gas Company | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock Based Compensation | Stock Based Compensation PSEG’s Amended and Restated 2004 Long-Term Incentive Plan (LTIP) is a broad-based equity compensation program that provides for grants of various long-term incentive compensation awards, such as stock options, stock appreciation rights, performance share units, restricted stock, restricted stock units, cash awards or any combination thereof. The types of long-term incentive awards that have been granted under the LTIP are non-qualified options to purchase shares of PSEG’s common stock, restricted stock unit awards and performance share unit awards. The type of equity award that is granted and the details of that award may vary from time to time and is subject to the approval of the Organization and Compensation Committee of PSEG’s Board of Directors (O&CC), the LTIP’s administrative committee. The LTIP currently provides for the issuance of equity awards with respect to approximately 16 million shares of common stock. As of December 31, 2020, there were approximately 13 million shares available for future awards under the LTIP. Stock Options Under the LTIP, non-qualified options to acquire shares of PSEG common stock may be granted to officers and other key employees selected by the O&CC. Option awards are granted with an exercise price equal to the market price of PSEG’s common stock at the grant date. The options generally vest over four years of continuous service. Vesting schedules may be accelerated upon the occurrence of certain events, such as a change-in-control (unless substituted with an equity award of equal value), retirement, death or disability. Options are exercisable over a period of time designated by the O&CC (but not prior to one year or longer than ten years from the date of grant) and are subject to such other terms and conditions as the O&CC determines. Payment by option holders upon exercise of an option may be made in cash or, with the consent of the O&CC, by delivering previously acquired shares of PSEG common stock. No options have been granted since 2009. Restricted Stock Units (RSUs) Under the LTIP, PSEG has granted RSU awards to officers and other key employees. These awards, which are bookkeeping entries only, are subject to risk of forfeiture until vested by continued employment. Until distributed, the units are credited with dividend equivalent units (DEUs) proportionate to the dividends paid on PSEG common stock. Distributions are made in shares of common stock. The RSU grants for 2020 and 2019 generally vest at the end of three years. Vesting may be accelerated (pro-rated basis or full vesting) upon certain events such as change-in-control, retirement, disability or death. Performance Share Units (PSUs) Under the LTIP, PSEG has granted PSUs to officers and other key employees. These provide for distribution in shares of PSEG common stock based on achievement of certain financial goals over a three Stock-Based Compensation PSEG recognizes compensation expense for stock options based on their grant date fair values, which are determined using the Black-Scholes option-pricing model. Stock option awards are expensed on a tranche-specific basis over the requisite service period of the award. Ultimately, compensation expense for stock options is recognized for awards that vest. PSEG recognizes compensation expense for RSUs over the vesting period based on the grant date fair value of the shares, which is equal to the closing market price of PSEG’s common stock on the date of the grant. PSEG recognizes compensation expense for the total shareholder return (TSR) target for its PSU awards based on the grant date fair values of the award, which are determined using the Monte Carlo model. The following table provides the assumptions used to calculate the grant date fair value of the TSR portion of the PSU awards for 2020, 2019 and 2018: Grant Date Risk-Free Interest Rate Volatility February 18, 2020 1.36% 15.00% February 19, 2019 2.47% 16.74% February 20, 2018 2.36% 17.57% The accrual of compensation cost is based on the probable achievement of the performance conditions, which result in a payout from 0% to 200% of the initial grant. PSEG recognizes compensation expense for the return on invested capital target for its PSUs based on the grant date fair value of the awards, which is equal to the market price of PSEG’s common stock on the date of the grant. The accrual during the year of grant is estimated at 100% of the original grant. Such accrual may be adjusted to reflect the actual outcome. 2020 2019 2018 Millions Compensation Cost included in O&M Expense $ 35 $ 33 $ 30 Income Tax Benefit Recognized in Consolidated Statement of Operations $ 10 $ 9 $ 9 For 2020, 2019 and 2018, PSEG also recorded excess tax benefits of $2 million, $5 million and $3 million, respectively. PSEG recognizes compensation cost of awards issued over the shorter of the original vesting period or the period beginning on the date of grant and ending on the date an individual is eligible for retirement and the award vests. Stock Options As of January 1, 2019, there were 231,933 stock options outstanding, all of which were exercised in 2019 at a weighted average price of $33.49. There were no stock options granted or vested in 2020, 2019 and 2018. Activity for options exercised for the years ended December 31, 2020, 2019 and 2018 is shown below: 2020 2019 2018 Millions Total Intrinsic Value of Options Exercised $ — $ 5 $ 2 Cash Received from Options Exercised $ — $ 8 $ 4 Tax Benefit Realized from Options Exercised $ — $ 1 $ — RSUs Changes in RSUs for the year ended December 31, 2020 are summarized as follows: Shares Weighted Weighted Average Aggregate Non-vested as of January 1, 2020 214,981 $ 50.41 Granted 219,749 $ 58.85 Vested 203,032 $ 55.20 Canceled/Forfeited 8,800 $ 54.13 Non-vested as of December 31, 2020 222,898 $ 54.21 0.9 $ 12,994,953 The weighted average grant date fair value per share for RSUs during the years ended December 31, 2020, 2019 and 2018 was $58.85, $56.24 and $49.34 per share, respectively. The total intrinsic value of RSUs distributed during the years ended December 31, 2020, 2019 and 2018 was $11 million, $16 million and $12 million, respectively. As of December 31, 2020, there was approximately $4 million of unrecognized compensation cost related to the RSUs, which is expected to be recognized over a weighted average period of 0.9 years. DEUs of 25,920 accrued on the RSUs during the year. PSUs Changes in PSUs for the year ended December 31, 2020 are summarized as follows: Shares Weighted Weighted Average Aggregate Non-vested as of January 1, 2020 334,515 $ 59.30 Granted 447,815 $ 51.79 Vested 285,977 $ 54.96 Canceled/Forfeited 20,512 $ 58.37 Non-vested as of December 31, 2020 475,841 $ 54.88 1.7 $ 27,741,530 The weighted average grant date fair value per share for PSUs during the years ended December 31, 2020, 2019 and 2018 was $51.79, $62.17 and $54.95 per share, respectively. The total intrinsic value of PSUs distributed during the years ended December 31, 2020, 2019 and 2018 was $19 million, $17 million and $17 million, respectively. As of December 31, 2020, there was approximately $24 million of unrecognized compensation cost related to the PSUs, which is expected to be recognized over a weighted average period of 1.7 years. DEUs of 42,925 accrued on the PSUs during the year. Outside Directors Under the Directors Equity Plan, annually, on the first business day of May, each non-employee member of the Board of Directors is awarded stock units based on the amount of annual compensation to be paid at the closing price of PSEG common stock on that date. DEUs are credited quarterly and distributions will occur as specified by their election in accordance with the provisions of the Directors Equity Plan. The fair value of these awards is recorded as compensation expense in the Consolidated Statements of Operations. Compensation expense for the plan was immaterial for each of the years ended December 31, 2020, 2019 and 2018. ESPP PSEG maintains an ESPP for all eligible employees of PSEG and its subsidiaries. Under the ESPP, shares of PSEG common stock may be purchased at 95% of the fair market value for represented employees and 90% for non-represented employees through payroll deductions. Dividends are to be paid out in cash unless the participant elects the dividends to be reinvested at fair market price. All employees are required to hold the shares purchased under the ESPP for at least three months from the purchase date. In any year, employees may purchase shares having a value not exceeding 10% of their base pay. Compensation expense recognized under this program was $1 million for the years ended December 31, 2020 and 2019 and immaterial for the year ended December 31, 2018. During the years ended December 31, 2020, 2019 and 2018, employees purchased 373,682 shares, 280,077 shares and 286,559 shares, respectively, at an average price of $47.26, $54.67 and $47.44 per share, respectively. As of December 31, 2020, 2.2 million shares were available for future issuance under this plan. |
PSEG Power LLC | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock Based Compensation | Stock Based Compensation PSEG’s Amended and Restated 2004 Long-Term Incentive Plan (LTIP) is a broad-based equity compensation program that provides for grants of various long-term incentive compensation awards, such as stock options, stock appreciation rights, performance share units, restricted stock, restricted stock units, cash awards or any combination thereof. The types of long-term incentive awards that have been granted under the LTIP are non-qualified options to purchase shares of PSEG’s common stock, restricted stock unit awards and performance share unit awards. The type of equity award that is granted and the details of that award may vary from time to time and is subject to the approval of the Organization and Compensation Committee of PSEG’s Board of Directors (O&CC), the LTIP’s administrative committee. The LTIP currently provides for the issuance of equity awards with respect to approximately 16 million shares of common stock. As of December 31, 2020, there were approximately 13 million shares available for future awards under the LTIP. Stock Options Under the LTIP, non-qualified options to acquire shares of PSEG common stock may be granted to officers and other key employees selected by the O&CC. Option awards are granted with an exercise price equal to the market price of PSEG’s common stock at the grant date. The options generally vest over four years of continuous service. Vesting schedules may be accelerated upon the occurrence of certain events, such as a change-in-control (unless substituted with an equity award of equal value), retirement, death or disability. Options are exercisable over a period of time designated by the O&CC (but not prior to one year or longer than ten years from the date of grant) and are subject to such other terms and conditions as the O&CC determines. Payment by option holders upon exercise of an option may be made in cash or, with the consent of the O&CC, by delivering previously acquired shares of PSEG common stock. No options have been granted since 2009. Restricted Stock Units (RSUs) Under the LTIP, PSEG has granted RSU awards to officers and other key employees. These awards, which are bookkeeping entries only, are subject to risk of forfeiture until vested by continued employment. Until distributed, the units are credited with dividend equivalent units (DEUs) proportionate to the dividends paid on PSEG common stock. Distributions are made in shares of common stock. The RSU grants for 2020 and 2019 generally vest at the end of three years. Vesting may be accelerated (pro-rated basis or full vesting) upon certain events such as change-in-control, retirement, disability or death. Performance Share Units (PSUs) Under the LTIP, PSEG has granted PSUs to officers and other key employees. These provide for distribution in shares of PSEG common stock based on achievement of certain financial goals over a three Stock-Based Compensation PSEG recognizes compensation expense for stock options based on their grant date fair values, which are determined using the Black-Scholes option-pricing model. Stock option awards are expensed on a tranche-specific basis over the requisite service period of the award. Ultimately, compensation expense for stock options is recognized for awards that vest. PSEG recognizes compensation expense for RSUs over the vesting period based on the grant date fair value of the shares, which is equal to the closing market price of PSEG’s common stock on the date of the grant. PSEG recognizes compensation expense for the total shareholder return (TSR) target for its PSU awards based on the grant date fair values of the award, which are determined using the Monte Carlo model. The following table provides the assumptions used to calculate the grant date fair value of the TSR portion of the PSU awards for 2020, 2019 and 2018: Grant Date Risk-Free Interest Rate Volatility February 18, 2020 1.36% 15.00% February 19, 2019 2.47% 16.74% February 20, 2018 2.36% 17.57% The accrual of compensation cost is based on the probable achievement of the performance conditions, which result in a payout from 0% to 200% of the initial grant. PSEG recognizes compensation expense for the return on invested capital target for its PSUs based on the grant date fair value of the awards, which is equal to the market price of PSEG’s common stock on the date of the grant. The accrual during the year of grant is estimated at 100% of the original grant. Such accrual may be adjusted to reflect the actual outcome. 2020 2019 2018 Millions Compensation Cost included in O&M Expense $ 35 $ 33 $ 30 Income Tax Benefit Recognized in Consolidated Statement of Operations $ 10 $ 9 $ 9 For 2020, 2019 and 2018, PSEG also recorded excess tax benefits of $2 million, $5 million and $3 million, respectively. PSEG recognizes compensation cost of awards issued over the shorter of the original vesting period or the period beginning on the date of grant and ending on the date an individual is eligible for retirement and the award vests. Stock Options As of January 1, 2019, there were 231,933 stock options outstanding, all of which were exercised in 2019 at a weighted average price of $33.49. There were no stock options granted or vested in 2020, 2019 and 2018. Activity for options exercised for the years ended December 31, 2020, 2019 and 2018 is shown below: 2020 2019 2018 Millions Total Intrinsic Value of Options Exercised $ — $ 5 $ 2 Cash Received from Options Exercised $ — $ 8 $ 4 Tax Benefit Realized from Options Exercised $ — $ 1 $ — RSUs Changes in RSUs for the year ended December 31, 2020 are summarized as follows: Shares Weighted Weighted Average Aggregate Non-vested as of January 1, 2020 214,981 $ 50.41 Granted 219,749 $ 58.85 Vested 203,032 $ 55.20 Canceled/Forfeited 8,800 $ 54.13 Non-vested as of December 31, 2020 222,898 $ 54.21 0.9 $ 12,994,953 The weighted average grant date fair value per share for RSUs during the years ended December 31, 2020, 2019 and 2018 was $58.85, $56.24 and $49.34 per share, respectively. The total intrinsic value of RSUs distributed during the years ended December 31, 2020, 2019 and 2018 was $11 million, $16 million and $12 million, respectively. As of December 31, 2020, there was approximately $4 million of unrecognized compensation cost related to the RSUs, which is expected to be recognized over a weighted average period of 0.9 years. DEUs of 25,920 accrued on the RSUs during the year. PSUs Changes in PSUs for the year ended December 31, 2020 are summarized as follows: Shares Weighted Weighted Average Aggregate Non-vested as of January 1, 2020 334,515 $ 59.30 Granted 447,815 $ 51.79 Vested 285,977 $ 54.96 Canceled/Forfeited 20,512 $ 58.37 Non-vested as of December 31, 2020 475,841 $ 54.88 1.7 $ 27,741,530 The weighted average grant date fair value per share for PSUs during the years ended December 31, 2020, 2019 and 2018 was $51.79, $62.17 and $54.95 per share, respectively. The total intrinsic value of PSUs distributed during the years ended December 31, 2020, 2019 and 2018 was $19 million, $17 million and $17 million, respectively. As of December 31, 2020, there was approximately $24 million of unrecognized compensation cost related to the PSUs, which is expected to be recognized over a weighted average period of 1.7 years. DEUs of 42,925 accrued on the PSUs during the year. Outside Directors Under the Directors Equity Plan, annually, on the first business day of May, each non-employee member of the Board of Directors is awarded stock units based on the amount of annual compensation to be paid at the closing price of PSEG common stock on that date. DEUs are credited quarterly and distributions will occur as specified by their election in accordance with the provisions of the Directors Equity Plan. The fair value of these awards is recorded as compensation expense in the Consolidated Statements of Operations. Compensation expense for the plan was immaterial for each of the years ended December 31, 2020, 2019 and 2018. ESPP PSEG maintains an ESPP for all eligible employees of PSEG and its subsidiaries. Under the ESPP, shares of PSEG common stock may be purchased at 95% of the fair market value for represented employees and 90% for non-represented employees through payroll deductions. Dividends are to be paid out in cash unless the participant elects the dividends to be reinvested at fair market price. All employees are required to hold the shares purchased under the ESPP for at least three months from the purchase date. In any year, employees may purchase shares having a value not exceeding 10% of their base pay. Compensation expense recognized under this program was $1 million for the years ended December 31, 2020 and 2019 and immaterial for the year ended December 31, 2018. During the years ended December 31, 2020, 2019 and 2018, employees purchased 373,682 shares, 280,077 shares and 286,559 shares, respectively, at an average price of $47.26, $54.67 and $47.44 per share, respectively. As of December 31, 2020, 2.2 million shares were available for future issuance under this plan. |
Other Income and Deductions
Other Income and Deductions | 12 Months Ended |
Dec. 31, 2020 | |
Component of Other Income [Line Items] | |
Other Income and Deductions | Other Income (Deductions) PSE&G PSEG Power Other (A) Consolidated Millions Year Ended December 31, 2020 NDT Fund Interest and Dividends $ — $ 52 $ — $ 52 Allowance for Funds Used During Construction 87 — — 87 Solar Loan Interest 15 — — 15 Donations — — (3) (3) Purchase of Tax Losses under New Jersey Technology Tax Benefit Transfer Program — (36) — (36) Other 6 (4) (2) — Total Other Income (Deductions) $ 108 $ 12 $ (5) $ 115 Year Ended December 31, 2019 NDT Fund Interest and Dividends $ — $ 57 $ — $ 57 Allowance for Funds Used During Construction 59 — — 59 Solar Loan Interest 16 — — 16 Donations — — (11) (11) Other 8 (3) (1) 4 Total Other Income (Deductions) $ 83 $ 54 $ (12) $ 125 Year Ended December 31, 2018 NDT Fund Interest and Dividends $ — $ 52 $ — $ 52 Allowance for Funds Used During Construction 54 — — 54 Solar Loan Interest 18 — — 18 Donations — — (17) (17) Purchase of Tax Losses under New Jersey Technology Tax Benefit Transfer Program — (26) — (26) Other 8 (5) 1 4 Total Other Income (Deductions) $ 80 $ 21 $ (16) $ 85 (A) Other consists of activity at PSEG (as parent company), Energy Holdings, Services, PSEG LI and intercompany eliminations. |
Public Service Electric and Gas Company | |
Component of Other Income [Line Items] | |
Other Income and Deductions | Other Income (Deductions) PSE&G PSEG Power Other (A) Consolidated Millions Year Ended December 31, 2020 NDT Fund Interest and Dividends $ — $ 52 $ — $ 52 Allowance for Funds Used During Construction 87 — — 87 Solar Loan Interest 15 — — 15 Donations — — (3) (3) Purchase of Tax Losses under New Jersey Technology Tax Benefit Transfer Program — (36) — (36) Other 6 (4) (2) — Total Other Income (Deductions) $ 108 $ 12 $ (5) $ 115 Year Ended December 31, 2019 NDT Fund Interest and Dividends $ — $ 57 $ — $ 57 Allowance for Funds Used During Construction 59 — — 59 Solar Loan Interest 16 — — 16 Donations — — (11) (11) Other 8 (3) (1) 4 Total Other Income (Deductions) $ 83 $ 54 $ (12) $ 125 Year Ended December 31, 2018 NDT Fund Interest and Dividends $ — $ 52 $ — $ 52 Allowance for Funds Used During Construction 54 — — 54 Solar Loan Interest 18 — — 18 Donations — — (17) (17) Purchase of Tax Losses under New Jersey Technology Tax Benefit Transfer Program — (26) — (26) Other 8 (5) 1 4 Total Other Income (Deductions) $ 80 $ 21 $ (16) $ 85 (A) Other consists of activity at PSEG (as parent company), Energy Holdings, Services, PSEG LI and intercompany eliminations. |
PSEG Power LLC | |
Component of Other Income [Line Items] | |
Other Income and Deductions | Other Income (Deductions) PSE&G PSEG Power Other (A) Consolidated Millions Year Ended December 31, 2020 NDT Fund Interest and Dividends $ — $ 52 $ — $ 52 Allowance for Funds Used During Construction 87 — — 87 Solar Loan Interest 15 — — 15 Donations — — (3) (3) Purchase of Tax Losses under New Jersey Technology Tax Benefit Transfer Program — (36) — (36) Other 6 (4) (2) — Total Other Income (Deductions) $ 108 $ 12 $ (5) $ 115 Year Ended December 31, 2019 NDT Fund Interest and Dividends $ — $ 57 $ — $ 57 Allowance for Funds Used During Construction 59 — — 59 Solar Loan Interest 16 — — 16 Donations — — (11) (11) Other 8 (3) (1) 4 Total Other Income (Deductions) $ 83 $ 54 $ (12) $ 125 Year Ended December 31, 2018 NDT Fund Interest and Dividends $ — $ 52 $ — $ 52 Allowance for Funds Used During Construction 54 — — 54 Solar Loan Interest 18 — — 18 Donations — — (17) (17) Purchase of Tax Losses under New Jersey Technology Tax Benefit Transfer Program — (26) — (26) Other 8 (5) 1 4 Total Other Income (Deductions) $ 80 $ 21 $ (16) $ 85 (A) Other consists of activity at PSEG (as parent company), Energy Holdings, Services, PSEG LI and intercompany eliminations. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Taxes [Line Items] | |
Income Taxes | Income Taxes A reconciliation of reported income tax expense for PSEG with the amount computed by multiplying pre-tax income by the statutory federal income tax rate of 21% is as follows: Years Ended December 31, PSEG 2020 2019 2018 Millions Net Income $ 1,905 $ 1,693 $ 1,438 Income Taxes: Operating Income: Current (Benefit) Expense: Federal $ 385 $ 84 $ (97) State 48 18 83 Total Current 433 102 (14) Deferred Expense (Benefit): Federal (164) 3 373 State 141 132 71 Total Deferred (23) 135 444 ITC (14) 20 (13) Total Income Tax Expense (Benefit) $ 396 $ 257 $ 417 Pre-Tax Income $ 2,301 $ 1,950 $ 1,855 Tax Computed at Statutory Rate 21% $ 483 $ 410 $ 390 Increase (Decrease) Attributable to Flow-Through of Certain Tax Adjustments: State Income Taxes (net of federal income tax) 147 117 123 Uncertain Tax Positions 3 — (24) NDT Fund 32 34 (13) Plant-Related Items (9) (2) (10) Tax Credits (18) (18) (16) Audit Settlement (27) — — Leasing Activities (35) — — Tax Adjustment Credit (205) (272) (30) Deferred Tax Expense (Benefit) - Tax Act — — 3 Bad Debt Flow-Through 28 — — Other (3) (12) (6) Subtotal (87) (153) 27 Total Income Tax Expense (Benefit) $ 396 $ 257 $ 417 Effective Income Tax Rate 17.2 % 13.2 % 22.5 % The following is an analysis of deferred income taxes for PSEG: As of December 31, PSEG 2020 2019 Millions Deferred Income Taxes Assets: Noncurrent: Regulatory Liability Excess Deferred Tax $ 485 $ 539 OPEB 135 151 Related to Uncertain Tax Positions 29 97 Interest Disallowance Carry Forward 39 76 Operating Leases 60 64 Other 170 128 Total Noncurrent Assets $ 918 $ 1,055 Liabilities: Noncurrent: Plant-Related Items $ 5,163 $ 5,051 New Jersey Corporate Business Tax 1,016 876 Leasing Activities 133 284 AROs and NDT Fund 324 277 Taxes Recoverable Through Future Rates (net) 114 108 Pension Costs 97 98 Operating Leases 55 59 Other 247 273 Total Noncurrent Liabilities $ 7,149 $ 7,026 Summary of Accumulated Deferred Income Taxes: Net Noncurrent Deferred Income Tax Liabilities $ 6,231 $ 5,971 ITC 271 285 Net Total Noncurrent Deferred Income Taxes and ITC $ 6,502 $ 6,256 The deferred tax effect of certain assets and liabilities is presented in the table above net of the deferred tax effect associated with the respective regulatory deferrals. A reconciliation of reported income tax expense for PSE&G with the amount computed by multiplying pre-tax income by the statutory federal income tax rate of 21% is as follows: Years Ended December 31, PSE&G 2020 2019 2018 Millions Net Income $ 1,327 $ 1,250 $ 1,067 Income Taxes: Operating Income: Current (Benefit) Expense: Federal $ 179 $ 121 $ (62) State 8 — 1 Total Current 187 121 (61) Deferred Expense (Benefit): Federal (71) (156) 287 State 128 117 122 Total Deferred 57 (39) 409 ITC (4) 11 (4) Total Income Tax Expense $ 240 $ 93 $ 344 Pre-Tax Income $ 1,567 $ 1,343 $ 1,411 Tax Computed at Statutory Rate 21% $ 329 $ 282 $ 296 Increase (Decrease) Attributable to Flow-Through of Certain Tax Adjustments: State Income Taxes (net of federal income tax) 106 92 98 Uncertain Tax Positions 4 1 (1) Plant-Related Items (9) (2) (10) Tax Credits (9) (8) (8) Audit Settlement (2) — — Tax Adjustment Credit (205) (272) (30) Bad Debt Flow-Through 28 — — Other (2) — (1) Subtotal (89) (189) 48 Total Income Tax Expense $ 240 $ 93 $ 344 Effective Income Tax Rate 15.3 % 6.9 % 24.4 % The following is an analysis of deferred income taxes for PSE&G: As of December 31, PSE&G 2020 2019 Millions Deferred Income Taxes Assets: Noncurrent: Regulatory Liability Excess Deferred Tax $ 485 $ 539 OPEB 82 97 Related to Uncertain Tax Positions — 42 Operating Leases 21 21 Other 92 55 Total Noncurrent Assets $ 680 $ 754 Liabilities: Noncurrent: Plant-Related Items $ 3,874 $ 3,754 New Jersey Corporate Business Tax 721 588 Pension Costs 166 160 Taxes Recoverable Through Future Rates (net) 114 108 Conservation Costs 61 44 Operating Leases 21 21 Related to Uncertain Tax Positions 5 — Other 161 183 Total Noncurrent Liabilities $ 5,123 $ 4,858 Summary of Accumulated Deferred Income Taxes: Net Noncurrent Deferred Income Tax Liabilities $ 4,443 $ 4,104 ITC 81 85 Net Total Noncurrent Deferred Income Taxes and ITC $ 4,524 $ 4,189 The deferred tax effect of certain assets and liabilities is presented in the table above net of the deferred tax effect associated with the respective regulatory deferrals. A reconciliation of reported income tax expense for PSEG Power with the amount computed by multiplying pre-tax income by the statutory federal income tax rate of 21% is as follows: Years Ended December 31, PSEG Power 2020 2019 2018 Millions Net Income $ 594 $ 468 $ 365 Income Taxes: Operating Income: Current (Benefit) Expense: Federal $ 135 $ (48) $ (164) State (7) 3 24 Total Current 128 (45) (140) Deferred Expense (Benefit): Federal 39 208 214 State 31 31 1 Total Deferred 70 239 215 ITC (10) 9 (9) Total Income Tax Expense (Benefit) $ 188 $ 203 $ 66 Pre-Tax Income $ 782 $ 671 $ 431 Tax Computed at Statutory Rate 21% $ 164 $ 141 $ 91 Increase (Decrease) Attributable to Flow-Through of Certain Tax Adjustments: State Income Taxes (net of federal income tax) 18 25 21 NDT Fund 32 34 (13) Tax Credits (9) (10) (7) Uncertain Tax Positions 5 11 (24) Audit Settlement (21) — — Deferred Tax Benefit - Tax Act — — (1) Other (1) 2 (1) Subtotal 24 62 (25) Total Income Tax Expense (Benefit) $ 188 $ 203 $ 66 Effective Income Tax Rate 24.0 % 30.3 % 15.3 % The following is an analysis of deferred income taxes for PSEG Power: As of December 31, PSEG Power 2020 2019 Millions Deferred Income Taxes Assets: Noncurrent: Related to Uncertain Tax Positions $ 38 $ 72 Pension Costs 68 61 OPEB 41 40 Operating Leases 13 15 Interest Disallowance Carry Forward 6 12 Contractual Liabilities & Environmental Costs 6 7 Other 36 30 Total Noncurrent Assets $ 208 $ 237 Liabilities: Noncurrent: Plant-Related Items $ 1,286 $ 1,292 New Jersey Corporate Business Tax 308 282 AROs and NDT Fund 325 278 Operating Leases 13 15 Other 21 45 Total Noncurrent Liabilities $ 1,953 $ 1,912 Summary of Accumulated Deferred Income Taxes: Net Noncurrent Deferred Income Tax Liabilities $ 1,745 $ 1,675 ITC 191 201 Net Total Noncurrent Deferred Income Taxes and ITC $ 1,936 $ 1,876 PSEG, PSE&G and PSEG Power each provide deferred taxes at the enacted statutory tax rate for all temporary differences between the financial statement carrying amounts and the tax bases of assets and liabilities irrespective of the treatment for rate-making purposes. Management believes that it is probable that the accumulated tax benefits that previously have been treated as a flow-through item to PSE&G customers will be recovered from or refunded to PSE&G’s customers in the future. See Note 7. Regulatory Assets and Liabilities. Effective January 1, 2018, the Tax Act established tax laws including, among other things, the reduction of the corporate income tax rate from a maximum of 35% to 21%, a limitation on deductible interest, and limitations on the utilization of net operating losses (NOLs). The 2018 decrease in the federal tax rate resulted in PSE&G recording excess deferred income taxes. As of December 31, 2019, the balance was approximately $1.9 billion with a Regulatory Liability of approximately $2.6 billion. In 2020, PSE&G returned approximately $286 million of excess deferred income taxes and previously realized and current period deferred income taxes related to tax repair deductions to its customers with a reduction to tax expense of approximately $205 million. The flowback to customers of the excess deferred income taxes and previously realized tax repair deductions resulted in a decrease of approximately $255 million in the Regulatory Liability. The current period tax repair deduction reduces tax expense and revenue and recognizes a Regulatory Asset as PSE&G believes it is probable that the current period tax repair deductions flowed through to the customers will be recovered from customers in the future. See Note 7. Regulatory Assets and Liabilities for additional information. In March 2020, the federal Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was enacted. Among other provisions, the CARES Act allows a five-year carryback of any NOL generated in a taxable year beginning after December 31, 2017, and before January 1, 2021. In April 2020, the IRS issued a PLR to PSE&G concluding that certain excess deferred taxes previously classified as protected should be classified as unprotected. Unprotected excess deferred income taxes are not subject to the normalization rules allowing them to be refunded to customers sooner as agreed to with FERC and the BPU. In July 2020, FERC and the BPU approved PSE&G’s requests to refund these unprotected excess deferred income taxes to customers. FERC approved the refund of these unprotected excess deferred income taxes within the 2019 true-up filing. The BPU approved the refund of these unprotected excess deferred income taxes within the next five years beginning in July 2020. See Note 7. Regulatory Assets and Liabilities for additional information. In July 2020, the IRS issued final and proposed regulations addressing the limitation on deductible business interest expense contained in the Tax Act. These regulations retroactively allow depreciation to be added back in computing the 30% adjusted taxable income (ATI) cap, increasing the amount of interest that can be deducted by unregulated businesses in years before 2022. For 2022 and after, the regulations continue to disallow the addback of depreciation in the computation of ATI, effectively lowering the cap on the amount of deductible business interest and contain special rules in allocating interest between regulated and non-regulated businesses. The portion of PSEG’s and PSEG Power’s business interest expense that was disallowed in 2018 and 2019 under the previously issued proposed regulations will now be deductible in those respective years. These regulations remain uncertain in some respects. In late December 2020, the Consolidated Appropriations Act (CAA), 2021 was enacted. PSEG’s initial analysis of the CAA indicates that this legislation will not have a material impact on the financial condition and cash flows of PSEG, PSE&G and PSEG Power. We expect that a prolonged coronavirus pandemic or economic recovery may result in additional federal or state tax legislation which can have a material impact on PSEG’s, PSE&G’s and PSEG Power’s tax expense and cash tax position. Amounts recorded under the Tax Act, CARES Act and CAA, including depreciation and interest disallowance regulations, are subject to change based on several factors, including, among other things, whether the IRS or state taxing authorities issue additional guidance and/or further clarification. Any further guidance or clarification could impact PSEG’s, PSE&G’s and PSEG Power’s financial statements. As of December 31, 2020, PSE&G had a $29 million New Jersey Corporate Business Tax NOL that is expected to be fully realized in the future. There are no other material tax carryforwards in other jurisdictions. PSEG recorded the following amounts related to its unrecognized tax benefits, which were primarily comprised of amounts recorded for PSE&G, PSEG Power and Energy Holdings: 2020 PSEG PSE&G PSEG Power Energy Millions Total Amount of Unrecognized Tax Benefits as of January 1, 2020 $ 321 $ 124 $ 161 $ 33 Increases as a Result of Positions Taken in a Prior Period 33 21 10 1 Decreases as a Result of Positions Taken in a Prior Period (91) (51) (36) (4) Increases as a Result of Positions Taken during the Current Period — — — — Decreases as a Result of Positions Taken during the Current Period — — — — Decreases as a Result of Settlements with Taxing Authorities (116) (64) (52) — Decreases due to Lapses of Applicable Statute of Limitations — — — — Total Amount of Unrecognized Tax Benefits as of December 31, 2020 $ 147 $ 30 $ 83 $ 30 Accumulated Deferred Income Taxes Associated with Unrecognized Tax Benefits (69) (12) (49) (8) Regulatory Asset—Unrecognized Tax Benefits (15) (15) — — Total Amount of Unrecognized Tax Benefits that if Recognized, would Impact the Effective Tax Rate (including Interest and Penalties) $ 63 $ 3 $ 34 $ 22 2019 PSEG PSE&G PSEG Power Energy Millions Total Amount of Unrecognized Tax Benefits as of January 1, 2019 $ 318 $ 108 $ 151 $ 54 Increases as a Result of Positions Taken in a Prior Period 17 5 8 5 Decreases as a Result of Positions Taken in a Prior Period (37) (1) (13) (22) Increases as a Result of Positions Taken during the Current Period 27 12 15 — Decreases as a Result of Positions Taken during the Current Period — — — — Decreases as a Result of Settlements with Taxing Authorities (4) — — (4) Decreases due to Lapses of Applicable Statute of Limitations — — — — Total Amount of Unrecognized Tax Benefits as of December 31, 2019 $ 321 $ 124 $ 161 $ 33 Accumulated Deferred Income Taxes Associated with Unrecognized Tax Benefits (184) (71) (105) (7) Regulatory Asset—Unrecognized Tax Benefits (46) (46) — — Total Amount of Unrecognized Tax Benefits that if Recognized, would Impact the Effective Tax Rate (including Interest and Penalties) $ 91 $ 7 $ 56 $ 26 2018 PSEG PSE&G PSEG Power Energy Millions Total Amount of Unrecognized Tax Benefits as of January 1, 2018 $ 334 $ 135 $ 142 $ 53 Increases as a Result of Positions Taken in a Prior Period 11 4 4 3 Decreases as a Result of Positions Taken in a Prior Period (70) (31) (37) (2) Increases as a Result of Positions Taken during the Current Period 52 3 48 — Decreases as a Result of Positions Taken during the Current Period (3) (3) — — Decreases as a Result of Settlements with Taxing Authorities (6) — (6) — Decreases due to Lapses of Applicable Statute of Limitations — — — — Total Amount of Unrecognized Tax Benefits as of December 31, 2018 $ 318 $ 108 $ 151 $ 54 Accumulated Deferred Income Taxes Associated with Unrecognized Tax Benefits (173) (57) (104) (12) Regulatory Asset—Unrecognized Tax Benefits (46) (46) — — Total Amount of Unrecognized Tax Benefits that if Recognized, would Impact the Effective Tax Rate (including Interest and Penalties) $ 99 $ 5 $ 47 $ 42 In April 2020, the Joint Committee on Taxation approved PSEG’s nuclear carryback claim and federal tax returns for the years 2011 and 2012. In June 2020, the federal income tax audits for years 2011 through 2016 and the nuclear carryback claim were concluded. PSEG and its subsidiaries include accrued interest and penalties related to uncertain tax positions required to be recorded as Income Tax Expense in the Consolidated Statements of Operations. Accumulated interest and penalties that are recorded on the Consolidated Balance Sheets on uncertain tax positions were as follows: Accumulated Interest and Penalties 2020 2019 2018 Millions PSEG $ 29 $ 40 $ 43 PSE&G $ 9 $ 16 $ 12 PSEG Power $ 5 $ 12 $ 9 Energy Holdings $ 15 $ 13 $ 22 It is reasonably possible that total unrecognized tax benefits will significantly increase or decrease within the next twelve months due to either agreements with various taxing authorities upon audit, the expiration of the Statute of Limitations, or other pending tax matters. These potential increases or decreases are as follows: Possible (Increase)/Decrease in Total Unrecognized Tax Benefits Over the next Millions PSEG $ 12 PSE&G $ 12 PSEG Power $ — A description of income tax years that remain subject to examination by material jurisdictions, where an examination has not already concluded are: PSEG PSE&G PSEG Power United States Federal 2017-2019 N/A N/A New Jersey 2011-2019 2011-2019 N/A Pennsylvania 2017-2019 2017-2019 N/A Connecticut 2016-2019 N/A N/A Maryland 2017-2019 N/A N/A New York 2017-2019 N/A N/A New Jersey State Tax Reform In September 2020, New Jersey enacted its State Fiscal Year 2021 Budget, which amended the temporary surtax originally enacted into law in 2018, from 1.5% to 2.5% for 2020 and 2021 and extended the 2.5% surtax to 2023. PSE&G continues to be exempt and this amendment will not have a material impact on PSEG’s and PSEG Power’s financial statements. In July 2018, New Jersey made changes to its income tax laws, including imposing the aforementioned temporary surtax, 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. PSEG anticipates New Jersey will be issuing clarifying guidance regarding combined reporting rules. Any further guidance or clarification could impact PSEG’s and PSEG Power’s financial statements. |
PSEG Power LLC | |
Income Taxes [Line Items] | |
Income Taxes | Income Taxes A reconciliation of reported income tax expense for PSEG with the amount computed by multiplying pre-tax income by the statutory federal income tax rate of 21% is as follows: Years Ended December 31, PSEG 2020 2019 2018 Millions Net Income $ 1,905 $ 1,693 $ 1,438 Income Taxes: Operating Income: Current (Benefit) Expense: Federal $ 385 $ 84 $ (97) State 48 18 83 Total Current 433 102 (14) Deferred Expense (Benefit): Federal (164) 3 373 State 141 132 71 Total Deferred (23) 135 444 ITC (14) 20 (13) Total Income Tax Expense (Benefit) $ 396 $ 257 $ 417 Pre-Tax Income $ 2,301 $ 1,950 $ 1,855 Tax Computed at Statutory Rate 21% $ 483 $ 410 $ 390 Increase (Decrease) Attributable to Flow-Through of Certain Tax Adjustments: State Income Taxes (net of federal income tax) 147 117 123 Uncertain Tax Positions 3 — (24) NDT Fund 32 34 (13) Plant-Related Items (9) (2) (10) Tax Credits (18) (18) (16) Audit Settlement (27) — — Leasing Activities (35) — — Tax Adjustment Credit (205) (272) (30) Deferred Tax Expense (Benefit) - Tax Act — — 3 Bad Debt Flow-Through 28 — — Other (3) (12) (6) Subtotal (87) (153) 27 Total Income Tax Expense (Benefit) $ 396 $ 257 $ 417 Effective Income Tax Rate 17.2 % 13.2 % 22.5 % The following is an analysis of deferred income taxes for PSEG: As of December 31, PSEG 2020 2019 Millions Deferred Income Taxes Assets: Noncurrent: Regulatory Liability Excess Deferred Tax $ 485 $ 539 OPEB 135 151 Related to Uncertain Tax Positions 29 97 Interest Disallowance Carry Forward 39 76 Operating Leases 60 64 Other 170 128 Total Noncurrent Assets $ 918 $ 1,055 Liabilities: Noncurrent: Plant-Related Items $ 5,163 $ 5,051 New Jersey Corporate Business Tax 1,016 876 Leasing Activities 133 284 AROs and NDT Fund 324 277 Taxes Recoverable Through Future Rates (net) 114 108 Pension Costs 97 98 Operating Leases 55 59 Other 247 273 Total Noncurrent Liabilities $ 7,149 $ 7,026 Summary of Accumulated Deferred Income Taxes: Net Noncurrent Deferred Income Tax Liabilities $ 6,231 $ 5,971 ITC 271 285 Net Total Noncurrent Deferred Income Taxes and ITC $ 6,502 $ 6,256 The deferred tax effect of certain assets and liabilities is presented in the table above net of the deferred tax effect associated with the respective regulatory deferrals. A reconciliation of reported income tax expense for PSE&G with the amount computed by multiplying pre-tax income by the statutory federal income tax rate of 21% is as follows: Years Ended December 31, PSE&G 2020 2019 2018 Millions Net Income $ 1,327 $ 1,250 $ 1,067 Income Taxes: Operating Income: Current (Benefit) Expense: Federal $ 179 $ 121 $ (62) State 8 — 1 Total Current 187 121 (61) Deferred Expense (Benefit): Federal (71) (156) 287 State 128 117 122 Total Deferred 57 (39) 409 ITC (4) 11 (4) Total Income Tax Expense $ 240 $ 93 $ 344 Pre-Tax Income $ 1,567 $ 1,343 $ 1,411 Tax Computed at Statutory Rate 21% $ 329 $ 282 $ 296 Increase (Decrease) Attributable to Flow-Through of Certain Tax Adjustments: State Income Taxes (net of federal income tax) 106 92 98 Uncertain Tax Positions 4 1 (1) Plant-Related Items (9) (2) (10) Tax Credits (9) (8) (8) Audit Settlement (2) — — Tax Adjustment Credit (205) (272) (30) Bad Debt Flow-Through 28 — — Other (2) — (1) Subtotal (89) (189) 48 Total Income Tax Expense $ 240 $ 93 $ 344 Effective Income Tax Rate 15.3 % 6.9 % 24.4 % The following is an analysis of deferred income taxes for PSE&G: As of December 31, PSE&G 2020 2019 Millions Deferred Income Taxes Assets: Noncurrent: Regulatory Liability Excess Deferred Tax $ 485 $ 539 OPEB 82 97 Related to Uncertain Tax Positions — 42 Operating Leases 21 21 Other 92 55 Total Noncurrent Assets $ 680 $ 754 Liabilities: Noncurrent: Plant-Related Items $ 3,874 $ 3,754 New Jersey Corporate Business Tax 721 588 Pension Costs 166 160 Taxes Recoverable Through Future Rates (net) 114 108 Conservation Costs 61 44 Operating Leases 21 21 Related to Uncertain Tax Positions 5 — Other 161 183 Total Noncurrent Liabilities $ 5,123 $ 4,858 Summary of Accumulated Deferred Income Taxes: Net Noncurrent Deferred Income Tax Liabilities $ 4,443 $ 4,104 ITC 81 85 Net Total Noncurrent Deferred Income Taxes and ITC $ 4,524 $ 4,189 The deferred tax effect of certain assets and liabilities is presented in the table above net of the deferred tax effect associated with the respective regulatory deferrals. A reconciliation of reported income tax expense for PSEG Power with the amount computed by multiplying pre-tax income by the statutory federal income tax rate of 21% is as follows: Years Ended December 31, PSEG Power 2020 2019 2018 Millions Net Income $ 594 $ 468 $ 365 Income Taxes: Operating Income: Current (Benefit) Expense: Federal $ 135 $ (48) $ (164) State (7) 3 24 Total Current 128 (45) (140) Deferred Expense (Benefit): Federal 39 208 214 State 31 31 1 Total Deferred 70 239 215 ITC (10) 9 (9) Total Income Tax Expense (Benefit) $ 188 $ 203 $ 66 Pre-Tax Income $ 782 $ 671 $ 431 Tax Computed at Statutory Rate 21% $ 164 $ 141 $ 91 Increase (Decrease) Attributable to Flow-Through of Certain Tax Adjustments: State Income Taxes (net of federal income tax) 18 25 21 NDT Fund 32 34 (13) Tax Credits (9) (10) (7) Uncertain Tax Positions 5 11 (24) Audit Settlement (21) — — Deferred Tax Benefit - Tax Act — — (1) Other (1) 2 (1) Subtotal 24 62 (25) Total Income Tax Expense (Benefit) $ 188 $ 203 $ 66 Effective Income Tax Rate 24.0 % 30.3 % 15.3 % The following is an analysis of deferred income taxes for PSEG Power: As of December 31, PSEG Power 2020 2019 Millions Deferred Income Taxes Assets: Noncurrent: Related to Uncertain Tax Positions $ 38 $ 72 Pension Costs 68 61 OPEB 41 40 Operating Leases 13 15 Interest Disallowance Carry Forward 6 12 Contractual Liabilities & Environmental Costs 6 7 Other 36 30 Total Noncurrent Assets $ 208 $ 237 Liabilities: Noncurrent: Plant-Related Items $ 1,286 $ 1,292 New Jersey Corporate Business Tax 308 282 AROs and NDT Fund 325 278 Operating Leases 13 15 Other 21 45 Total Noncurrent Liabilities $ 1,953 $ 1,912 Summary of Accumulated Deferred Income Taxes: Net Noncurrent Deferred Income Tax Liabilities $ 1,745 $ 1,675 ITC 191 201 Net Total Noncurrent Deferred Income Taxes and ITC $ 1,936 $ 1,876 PSEG, PSE&G and PSEG Power each provide deferred taxes at the enacted statutory tax rate for all temporary differences between the financial statement carrying amounts and the tax bases of assets and liabilities irrespective of the treatment for rate-making purposes. Management believes that it is probable that the accumulated tax benefits that previously have been treated as a flow-through item to PSE&G customers will be recovered from or refunded to PSE&G’s customers in the future. See Note 7. Regulatory Assets and Liabilities. Effective January 1, 2018, the Tax Act established tax laws including, among other things, the reduction of the corporate income tax rate from a maximum of 35% to 21%, a limitation on deductible interest, and limitations on the utilization of net operating losses (NOLs). The 2018 decrease in the federal tax rate resulted in PSE&G recording excess deferred income taxes. As of December 31, 2019, the balance was approximately $1.9 billion with a Regulatory Liability of approximately $2.6 billion. In 2020, PSE&G returned approximately $286 million of excess deferred income taxes and previously realized and current period deferred income taxes related to tax repair deductions to its customers with a reduction to tax expense of approximately $205 million. The flowback to customers of the excess deferred income taxes and previously realized tax repair deductions resulted in a decrease of approximately $255 million in the Regulatory Liability. The current period tax repair deduction reduces tax expense and revenue and recognizes a Regulatory Asset as PSE&G believes it is probable that the current period tax repair deductions flowed through to the customers will be recovered from customers in the future. See Note 7. Regulatory Assets and Liabilities for additional information. In March 2020, the federal Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was enacted. Among other provisions, the CARES Act allows a five-year carryback of any NOL generated in a taxable year beginning after December 31, 2017, and before January 1, 2021. In April 2020, the IRS issued a PLR to PSE&G concluding that certain excess deferred taxes previously classified as protected should be classified as unprotected. Unprotected excess deferred income taxes are not subject to the normalization rules allowing them to be refunded to customers sooner as agreed to with FERC and the BPU. In July 2020, FERC and the BPU approved PSE&G’s requests to refund these unprotected excess deferred income taxes to customers. FERC approved the refund of these unprotected excess deferred income taxes within the 2019 true-up filing. The BPU approved the refund of these unprotected excess deferred income taxes within the next five years beginning in July 2020. See Note 7. Regulatory Assets and Liabilities for additional information. In July 2020, the IRS issued final and proposed regulations addressing the limitation on deductible business interest expense contained in the Tax Act. These regulations retroactively allow depreciation to be added back in computing the 30% adjusted taxable income (ATI) cap, increasing the amount of interest that can be deducted by unregulated businesses in years before 2022. For 2022 and after, the regulations continue to disallow the addback of depreciation in the computation of ATI, effectively lowering the cap on the amount of deductible business interest and contain special rules in allocating interest between regulated and non-regulated businesses. The portion of PSEG’s and PSEG Power’s business interest expense that was disallowed in 2018 and 2019 under the previously issued proposed regulations will now be deductible in those respective years. These regulations remain uncertain in some respects. In late December 2020, the Consolidated Appropriations Act (CAA), 2021 was enacted. PSEG’s initial analysis of the CAA indicates that this legislation will not have a material impact on the financial condition and cash flows of PSEG, PSE&G and PSEG Power. We expect that a prolonged coronavirus pandemic or economic recovery may result in additional federal or state tax legislation which can have a material impact on PSEG’s, PSE&G’s and PSEG Power’s tax expense and cash tax position. Amounts recorded under the Tax Act, CARES Act and CAA, including depreciation and interest disallowance regulations, are subject to change based on several factors, including, among other things, whether the IRS or state taxing authorities issue additional guidance and/or further clarification. Any further guidance or clarification could impact PSEG’s, PSE&G’s and PSEG Power’s financial statements. As of December 31, 2020, PSE&G had a $29 million New Jersey Corporate Business Tax NOL that is expected to be fully realized in the future. There are no other material tax carryforwards in other jurisdictions. PSEG recorded the following amounts related to its unrecognized tax benefits, which were primarily comprised of amounts recorded for PSE&G, PSEG Power and Energy Holdings: 2020 PSEG PSE&G PSEG Power Energy Millions Total Amount of Unrecognized Tax Benefits as of January 1, 2020 $ 321 $ 124 $ 161 $ 33 Increases as a Result of Positions Taken in a Prior Period 33 21 10 1 Decreases as a Result of Positions Taken in a Prior Period (91) (51) (36) (4) Increases as a Result of Positions Taken during the Current Period — — — — Decreases as a Result of Positions Taken during the Current Period — — — — Decreases as a Result of Settlements with Taxing Authorities (116) (64) (52) — Decreases due to Lapses of Applicable Statute of Limitations — — — — Total Amount of Unrecognized Tax Benefits as of December 31, 2020 $ 147 $ 30 $ 83 $ 30 Accumulated Deferred Income Taxes Associated with Unrecognized Tax Benefits (69) (12) (49) (8) Regulatory Asset—Unrecognized Tax Benefits (15) (15) — — Total Amount of Unrecognized Tax Benefits that if Recognized, would Impact the Effective Tax Rate (including Interest and Penalties) $ 63 $ 3 $ 34 $ 22 2019 PSEG PSE&G PSEG Power Energy Millions Total Amount of Unrecognized Tax Benefits as of January 1, 2019 $ 318 $ 108 $ 151 $ 54 Increases as a Result of Positions Taken in a Prior Period 17 5 8 5 Decreases as a Result of Positions Taken in a Prior Period (37) (1) (13) (22) Increases as a Result of Positions Taken during the Current Period 27 12 15 — Decreases as a Result of Positions Taken during the Current Period — — — — Decreases as a Result of Settlements with Taxing Authorities (4) — — (4) Decreases due to Lapses of Applicable Statute of Limitations — — — — Total Amount of Unrecognized Tax Benefits as of December 31, 2019 $ 321 $ 124 $ 161 $ 33 Accumulated Deferred Income Taxes Associated with Unrecognized Tax Benefits (184) (71) (105) (7) Regulatory Asset—Unrecognized Tax Benefits (46) (46) — — Total Amount of Unrecognized Tax Benefits that if Recognized, would Impact the Effective Tax Rate (including Interest and Penalties) $ 91 $ 7 $ 56 $ 26 2018 PSEG PSE&G PSEG Power Energy Millions Total Amount of Unrecognized Tax Benefits as of January 1, 2018 $ 334 $ 135 $ 142 $ 53 Increases as a Result of Positions Taken in a Prior Period 11 4 4 3 Decreases as a Result of Positions Taken in a Prior Period (70) (31) (37) (2) Increases as a Result of Positions Taken during the Current Period 52 3 48 — Decreases as a Result of Positions Taken during the Current Period (3) (3) — — Decreases as a Result of Settlements with Taxing Authorities (6) — (6) — Decreases due to Lapses of Applicable Statute of Limitations — — — — Total Amount of Unrecognized Tax Benefits as of December 31, 2018 $ 318 $ 108 $ 151 $ 54 Accumulated Deferred Income Taxes Associated with Unrecognized Tax Benefits (173) (57) (104) (12) Regulatory Asset—Unrecognized Tax Benefits (46) (46) — — Total Amount of Unrecognized Tax Benefits that if Recognized, would Impact the Effective Tax Rate (including Interest and Penalties) $ 99 $ 5 $ 47 $ 42 In April 2020, the Joint Committee on Taxation approved PSEG’s nuclear carryback claim and federal tax returns for the years 2011 and 2012. In June 2020, the federal income tax audits for years 2011 through 2016 and the nuclear carryback claim were concluded. PSEG and its subsidiaries include accrued interest and penalties related to uncertain tax positions required to be recorded as Income Tax Expense in the Consolidated Statements of Operations. Accumulated interest and penalties that are recorded on the Consolidated Balance Sheets on uncertain tax positions were as follows: Accumulated Interest and Penalties 2020 2019 2018 Millions PSEG $ 29 $ 40 $ 43 PSE&G $ 9 $ 16 $ 12 PSEG Power $ 5 $ 12 $ 9 Energy Holdings $ 15 $ 13 $ 22 It is reasonably possible that total unrecognized tax benefits will significantly increase or decrease within the next twelve months due to either agreements with various taxing authorities upon audit, the expiration of the Statute of Limitations, or other pending tax matters. These potential increases or decreases are as follows: Possible (Increase)/Decrease in Total Unrecognized Tax Benefits Over the next Millions PSEG $ 12 PSE&G $ 12 PSEG Power $ — A description of income tax years that remain subject to examination by material jurisdictions, where an examination has not already concluded are: PSEG PSE&G PSEG Power United States Federal 2017-2019 N/A N/A New Jersey 2011-2019 2011-2019 N/A Pennsylvania 2017-2019 2017-2019 N/A Connecticut 2016-2019 N/A N/A Maryland 2017-2019 N/A N/A New York 2017-2019 N/A N/A New Jersey State Tax Reform In September 2020, New Jersey enacted its State Fiscal Year 2021 Budget, which amended the temporary surtax originally enacted into law in 2018, from 1.5% to 2.5% for 2020 and 2021 and extended the 2.5% surtax to 2023. PSE&G continues to be exempt and this amendment will not have a material impact on PSEG’s and PSEG Power’s financial statements. In July 2018, New Jersey made changes to its income tax laws, including imposing the aforementioned temporary surtax, 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. PSEG anticipates New Jersey will be issuing clarifying guidance regarding combined reporting rules. Any further guidance or clarification could impact PSEG’s and PSEG Power’s financial statements. |
Public Service Electric and Gas Company | |
Income Taxes [Line Items] | |
Income Taxes | Income Taxes A reconciliation of reported income tax expense for PSEG with the amount computed by multiplying pre-tax income by the statutory federal income tax rate of 21% is as follows: Years Ended December 31, PSEG 2020 2019 2018 Millions Net Income $ 1,905 $ 1,693 $ 1,438 Income Taxes: Operating Income: Current (Benefit) Expense: Federal $ 385 $ 84 $ (97) State 48 18 83 Total Current 433 102 (14) Deferred Expense (Benefit): Federal (164) 3 373 State 141 132 71 Total Deferred (23) 135 444 ITC (14) 20 (13) Total Income Tax Expense (Benefit) $ 396 $ 257 $ 417 Pre-Tax Income $ 2,301 $ 1,950 $ 1,855 Tax Computed at Statutory Rate 21% $ 483 $ 410 $ 390 Increase (Decrease) Attributable to Flow-Through of Certain Tax Adjustments: State Income Taxes (net of federal income tax) 147 117 123 Uncertain Tax Positions 3 — (24) NDT Fund 32 34 (13) Plant-Related Items (9) (2) (10) Tax Credits (18) (18) (16) Audit Settlement (27) — — Leasing Activities (35) — — Tax Adjustment Credit (205) (272) (30) Deferred Tax Expense (Benefit) - Tax Act — — 3 Bad Debt Flow-Through 28 — — Other (3) (12) (6) Subtotal (87) (153) 27 Total Income Tax Expense (Benefit) $ 396 $ 257 $ 417 Effective Income Tax Rate 17.2 % 13.2 % 22.5 % The following is an analysis of deferred income taxes for PSEG: As of December 31, PSEG 2020 2019 Millions Deferred Income Taxes Assets: Noncurrent: Regulatory Liability Excess Deferred Tax $ 485 $ 539 OPEB 135 151 Related to Uncertain Tax Positions 29 97 Interest Disallowance Carry Forward 39 76 Operating Leases 60 64 Other 170 128 Total Noncurrent Assets $ 918 $ 1,055 Liabilities: Noncurrent: Plant-Related Items $ 5,163 $ 5,051 New Jersey Corporate Business Tax 1,016 876 Leasing Activities 133 284 AROs and NDT Fund 324 277 Taxes Recoverable Through Future Rates (net) 114 108 Pension Costs 97 98 Operating Leases 55 59 Other 247 273 Total Noncurrent Liabilities $ 7,149 $ 7,026 Summary of Accumulated Deferred Income Taxes: Net Noncurrent Deferred Income Tax Liabilities $ 6,231 $ 5,971 ITC 271 285 Net Total Noncurrent Deferred Income Taxes and ITC $ 6,502 $ 6,256 The deferred tax effect of certain assets and liabilities is presented in the table above net of the deferred tax effect associated with the respective regulatory deferrals. A reconciliation of reported income tax expense for PSE&G with the amount computed by multiplying pre-tax income by the statutory federal income tax rate of 21% is as follows: Years Ended December 31, PSE&G 2020 2019 2018 Millions Net Income $ 1,327 $ 1,250 $ 1,067 Income Taxes: Operating Income: Current (Benefit) Expense: Federal $ 179 $ 121 $ (62) State 8 — 1 Total Current 187 121 (61) Deferred Expense (Benefit): Federal (71) (156) 287 State 128 117 122 Total Deferred 57 (39) 409 ITC (4) 11 (4) Total Income Tax Expense $ 240 $ 93 $ 344 Pre-Tax Income $ 1,567 $ 1,343 $ 1,411 Tax Computed at Statutory Rate 21% $ 329 $ 282 $ 296 Increase (Decrease) Attributable to Flow-Through of Certain Tax Adjustments: State Income Taxes (net of federal income tax) 106 92 98 Uncertain Tax Positions 4 1 (1) Plant-Related Items (9) (2) (10) Tax Credits (9) (8) (8) Audit Settlement (2) — — Tax Adjustment Credit (205) (272) (30) Bad Debt Flow-Through 28 — — Other (2) — (1) Subtotal (89) (189) 48 Total Income Tax Expense $ 240 $ 93 $ 344 Effective Income Tax Rate 15.3 % 6.9 % 24.4 % The following is an analysis of deferred income taxes for PSE&G: As of December 31, PSE&G 2020 2019 Millions Deferred Income Taxes Assets: Noncurrent: Regulatory Liability Excess Deferred Tax $ 485 $ 539 OPEB 82 97 Related to Uncertain Tax Positions — 42 Operating Leases 21 21 Other 92 55 Total Noncurrent Assets $ 680 $ 754 Liabilities: Noncurrent: Plant-Related Items $ 3,874 $ 3,754 New Jersey Corporate Business Tax 721 588 Pension Costs 166 160 Taxes Recoverable Through Future Rates (net) 114 108 Conservation Costs 61 44 Operating Leases 21 21 Related to Uncertain Tax Positions 5 — Other 161 183 Total Noncurrent Liabilities $ 5,123 $ 4,858 Summary of Accumulated Deferred Income Taxes: Net Noncurrent Deferred Income Tax Liabilities $ 4,443 $ 4,104 ITC 81 85 Net Total Noncurrent Deferred Income Taxes and ITC $ 4,524 $ 4,189 The deferred tax effect of certain assets and liabilities is presented in the table above net of the deferred tax effect associated with the respective regulatory deferrals. A reconciliation of reported income tax expense for PSEG Power with the amount computed by multiplying pre-tax income by the statutory federal income tax rate of 21% is as follows: Years Ended December 31, PSEG Power 2020 2019 2018 Millions Net Income $ 594 $ 468 $ 365 Income Taxes: Operating Income: Current (Benefit) Expense: Federal $ 135 $ (48) $ (164) State (7) 3 24 Total Current 128 (45) (140) Deferred Expense (Benefit): Federal 39 208 214 State 31 31 1 Total Deferred 70 239 215 ITC (10) 9 (9) Total Income Tax Expense (Benefit) $ 188 $ 203 $ 66 Pre-Tax Income $ 782 $ 671 $ 431 Tax Computed at Statutory Rate 21% $ 164 $ 141 $ 91 Increase (Decrease) Attributable to Flow-Through of Certain Tax Adjustments: State Income Taxes (net of federal income tax) 18 25 21 NDT Fund 32 34 (13) Tax Credits (9) (10) (7) Uncertain Tax Positions 5 11 (24) Audit Settlement (21) — — Deferred Tax Benefit - Tax Act — — (1) Other (1) 2 (1) Subtotal 24 62 (25) Total Income Tax Expense (Benefit) $ 188 $ 203 $ 66 Effective Income Tax Rate 24.0 % 30.3 % 15.3 % The following is an analysis of deferred income taxes for PSEG Power: As of December 31, PSEG Power 2020 2019 Millions Deferred Income Taxes Assets: Noncurrent: Related to Uncertain Tax Positions $ 38 $ 72 Pension Costs 68 61 OPEB 41 40 Operating Leases 13 15 Interest Disallowance Carry Forward 6 12 Contractual Liabilities & Environmental Costs 6 7 Other 36 30 Total Noncurrent Assets $ 208 $ 237 Liabilities: Noncurrent: Plant-Related Items $ 1,286 $ 1,292 New Jersey Corporate Business Tax 308 282 AROs and NDT Fund 325 278 Operating Leases 13 15 Other 21 45 Total Noncurrent Liabilities $ 1,953 $ 1,912 Summary of Accumulated Deferred Income Taxes: Net Noncurrent Deferred Income Tax Liabilities $ 1,745 $ 1,675 ITC 191 201 Net Total Noncurrent Deferred Income Taxes and ITC $ 1,936 $ 1,876 PSEG, PSE&G and PSEG Power each provide deferred taxes at the enacted statutory tax rate for all temporary differences between the financial statement carrying amounts and the tax bases of assets and liabilities irrespective of the treatment for rate-making purposes. Management believes that it is probable that the accumulated tax benefits that previously have been treated as a flow-through item to PSE&G customers will be recovered from or refunded to PSE&G’s customers in the future. See Note 7. Regulatory Assets and Liabilities. Effective January 1, 2018, the Tax Act established tax laws including, among other things, the reduction of the corporate income tax rate from a maximum of 35% to 21%, a limitation on deductible interest, and limitations on the utilization of net operating losses (NOLs). The 2018 decrease in the federal tax rate resulted in PSE&G recording excess deferred income taxes. As of December 31, 2019, the balance was approximately $1.9 billion with a Regulatory Liability of approximately $2.6 billion. In 2020, PSE&G returned approximately $286 million of excess deferred income taxes and previously realized and current period deferred income taxes related to tax repair deductions to its customers with a reduction to tax expense of approximately $205 million. The flowback to customers of the excess deferred income taxes and previously realized tax repair deductions resulted in a decrease of approximately $255 million in the Regulatory Liability. The current period tax repair deduction reduces tax expense and revenue and recognizes a Regulatory Asset as PSE&G believes it is probable that the current period tax repair deductions flowed through to the customers will be recovered from customers in the future. See Note 7. Regulatory Assets and Liabilities for additional information. In March 2020, the federal Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was enacted. Among other provisions, the CARES Act allows a five-year carryback of any NOL generated in a taxable year beginning after December 31, 2017, and before January 1, 2021. In April 2020, the IRS issued a PLR to PSE&G concluding that certain excess deferred taxes previously classified as protected should be classified as unprotected. Unprotected excess deferred income taxes are not subject to the normalization rules allowing them to be refunded to customers sooner as agreed to with FERC and the BPU. In July 2020, FERC and the BPU approved PSE&G’s requests to refund these unprotected excess deferred income taxes to customers. FERC approved the refund of these unprotected excess deferred income taxes within the 2019 true-up filing. The BPU approved the refund of these unprotected excess deferred income taxes within the next five years beginning in July 2020. See Note 7. Regulatory Assets and Liabilities for additional information. In July 2020, the IRS issued final and proposed regulations addressing the limitation on deductible business interest expense contained in the Tax Act. These regulations retroactively allow depreciation to be added back in computing the 30% adjusted taxable income (ATI) cap, increasing the amount of interest that can be deducted by unregulated businesses in years before 2022. For 2022 and after, the regulations continue to disallow the addback of depreciation in the computation of ATI, effectively lowering the cap on the amount of deductible business interest and contain special rules in allocating interest between regulated and non-regulated businesses. The portion of PSEG’s and PSEG Power’s business interest expense that was disallowed in 2018 and 2019 under the previously issued proposed regulations will now be deductible in those respective years. These regulations remain uncertain in some respects. In late December 2020, the Consolidated Appropriations Act (CAA), 2021 was enacted. PSEG’s initial analysis of the CAA indicates that this legislation will not have a material impact on the financial condition and cash flows of PSEG, PSE&G and PSEG Power. We expect that a prolonged coronavirus pandemic or economic recovery may result in additional federal or state tax legislation which can have a material impact on PSEG’s, PSE&G’s and PSEG Power’s tax expense and cash tax position. Amounts recorded under the Tax Act, CARES Act and CAA, including depreciation and interest disallowance regulations, are subject to change based on several factors, including, among other things, whether the IRS or state taxing authorities issue additional guidance and/or further clarification. Any further guidance or clarification could impact PSEG’s, PSE&G’s and PSEG Power’s financial statements. As of December 31, 2020, PSE&G had a $29 million New Jersey Corporate Business Tax NOL that is expected to be fully realized in the future. There are no other material tax carryforwards in other jurisdictions. PSEG recorded the following amounts related to its unrecognized tax benefits, which were primarily comprised of amounts recorded for PSE&G, PSEG Power and Energy Holdings: 2020 PSEG PSE&G PSEG Power Energy Millions Total Amount of Unrecognized Tax Benefits as of January 1, 2020 $ 321 $ 124 $ 161 $ 33 Increases as a Result of Positions Taken in a Prior Period 33 21 10 1 Decreases as a Result of Positions Taken in a Prior Period (91) (51) (36) (4) Increases as a Result of Positions Taken during the Current Period — — — — Decreases as a Result of Positions Taken during the Current Period — — — — Decreases as a Result of Settlements with Taxing Authorities (116) (64) (52) — Decreases due to Lapses of Applicable Statute of Limitations — — — — Total Amount of Unrecognized Tax Benefits as of December 31, 2020 $ 147 $ 30 $ 83 $ 30 Accumulated Deferred Income Taxes Associated with Unrecognized Tax Benefits (69) (12) (49) (8) Regulatory Asset—Unrecognized Tax Benefits (15) (15) — — Total Amount of Unrecognized Tax Benefits that if Recognized, would Impact the Effective Tax Rate (including Interest and Penalties) $ 63 $ 3 $ 34 $ 22 2019 PSEG PSE&G PSEG Power Energy Millions Total Amount of Unrecognized Tax Benefits as of January 1, 2019 $ 318 $ 108 $ 151 $ 54 Increases as a Result of Positions Taken in a Prior Period 17 5 8 5 Decreases as a Result of Positions Taken in a Prior Period (37) (1) (13) (22) Increases as a Result of Positions Taken during the Current Period 27 12 15 — Decreases as a Result of Positions Taken during the Current Period — — — — Decreases as a Result of Settlements with Taxing Authorities (4) — — (4) Decreases due to Lapses of Applicable Statute of Limitations — — — — Total Amount of Unrecognized Tax Benefits as of December 31, 2019 $ 321 $ 124 $ 161 $ 33 Accumulated Deferred Income Taxes Associated with Unrecognized Tax Benefits (184) (71) (105) (7) Regulatory Asset—Unrecognized Tax Benefits (46) (46) — — Total Amount of Unrecognized Tax Benefits that if Recognized, would Impact the Effective Tax Rate (including Interest and Penalties) $ 91 $ 7 $ 56 $ 26 2018 PSEG PSE&G PSEG Power Energy Millions Total Amount of Unrecognized Tax Benefits as of January 1, 2018 $ 334 $ 135 $ 142 $ 53 Increases as a Result of Positions Taken in a Prior Period 11 4 4 3 Decreases as a Result of Positions Taken in a Prior Period (70) (31) (37) (2) Increases as a Result of Positions Taken during the Current Period 52 3 48 — Decreases as a Result of Positions Taken during the Current Period (3) (3) — — Decreases as a Result of Settlements with Taxing Authorities (6) — (6) — Decreases due to Lapses of Applicable Statute of Limitations — — — — Total Amount of Unrecognized Tax Benefits as of December 31, 2018 $ 318 $ 108 $ 151 $ 54 Accumulated Deferred Income Taxes Associated with Unrecognized Tax Benefits (173) (57) (104) (12) Regulatory Asset—Unrecognized Tax Benefits (46) (46) — — Total Amount of Unrecognized Tax Benefits that if Recognized, would Impact the Effective Tax Rate (including Interest and Penalties) $ 99 $ 5 $ 47 $ 42 In April 2020, the Joint Committee on Taxation approved PSEG’s nuclear carryback claim and federal tax returns for the years 2011 and 2012. In June 2020, the federal income tax audits for years 2011 through 2016 and the nuclear carryback claim were concluded. PSEG and its subsidiaries include accrued interest and penalties related to uncertain tax positions required to be recorded as Income Tax Expense in the Consolidated Statements of Operations. Accumulated interest and penalties that are recorded on the Consolidated Balance Sheets on uncertain tax positions were as follows: Accumulated Interest and Penalties 2020 2019 2018 Millions PSEG $ 29 $ 40 $ 43 PSE&G $ 9 $ 16 $ 12 PSEG Power $ 5 $ 12 $ 9 Energy Holdings $ 15 $ 13 $ 22 It is reasonably possible that total unrecognized tax benefits will significantly increase or decrease within the next twelve months due to either agreements with various taxing authorities upon audit, the expiration of the Statute of Limitations, or other pending tax matters. These potential increases or decreases are as follows: Possible (Increase)/Decrease in Total Unrecognized Tax Benefits Over the next Millions PSEG $ 12 PSE&G $ 12 PSEG Power $ — A description of income tax years that remain subject to examination by material jurisdictions, where an examination has not already concluded are: PSEG PSE&G PSEG Power United States Federal 2017-2019 N/A N/A New Jersey 2011-2019 2011-2019 N/A Pennsylvania 2017-2019 2017-2019 N/A Connecticut 2016-2019 N/A N/A Maryland 2017-2019 N/A N/A New York 2017-2019 N/A N/A New Jersey State Tax Reform In September 2020, New Jersey enacted its State Fiscal Year 2021 Budget, which amended the temporary surtax originally enacted into law in 2018, from 1.5% to 2.5% for 2020 and 2021 and extended the 2.5% surtax to 2023. PSE&G continues to be exempt and this amendment will not have a material impact on PSEG’s and PSEG Power’s financial statements. In July 2018, New Jersey made changes to its income tax laws, including imposing the aforementioned temporary surtax, 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. PSEG anticipates New Jersey will be issuing clarifying guidance regarding combined reporting rules. Any further guidance or clarification could impact PSEG’s and PSEG Power’s financial statements. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss), Net of Tax Accumulated Other Comprehensive Income (Loss), Net of Tax | 12 Months Ended |
Dec. 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 Other Comprehensive Income (Loss) Accumulated Other Comprehensive Income (Loss) Cash Flow Hedges Pension and OPEB Plans Available-for -Sale Securities Total Millions Balance as of December 31, 2017 $ — $ (406) $ 177 $ (229) Cumulative Effect Adjustment to Reclassify Unrealized Net Gains on Equity Investments to Retained Earnings — — (176) (176) Current Period Other Comprehensive Income (Loss) Other Comprehensive Income (Loss) before Reclassifications (1) 17 (25) (9) Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) — 29 8 37 Net Current Period Other Comprehensive Income (Loss) (1) 46 (17) 28 Net Change in Accumulated Other Comprehensive Income (Loss) (1) 46 (193) (148) Balance as of December 31, 2018 $ (1) $ (360) $ (16) $ (377) 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 (Loss) before Reclassifications (17) (70) 49 (38) Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) 3 12 (8) 7 Net Current Period Other Comprehensive Income (Loss) (14) (58) 41 (31) Net Change in Accumulated Other Comprehensive Income (Loss) (14) (139) 41 (112) Balance as of December 31, 2019 $ (15) $ (499) $ 25 $ (489) Other Comprehensive Income (Loss) before Reclassifications (4) (58) 51 (11) Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) 10 12 (26) (4) Net Current Period Other Comprehensive Income (Loss) 6 (46) 25 (15) Balance as of December 31, 2020 $ (9) $ (545) $ 50 $ (504) PSEG Power Other Comprehensive Income (Loss) Accumulated Other Comprehensive Income (Loss) Cash Flow Hedges Pension and OPEB Plans Available-for -Sale Securities Total Millions Balance as of December 31, 2017 $ — $ (347) $ 175 $ (172) Cumulative Effect Adjustment to Reclassify Unrealized Net Gains on Equity Investments to Retained Earnings — — (175) (175) Current Period Other Comprehensive Income (Loss) Other Comprehensive Income (Loss) before Reclassifications — 16 (19) (3) Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) — 25 6 31 Net Current Period Other Comprehensive Income (Loss) — 41 (13) 28 Net Change in Accumulated Other Comprehensive Income (Loss) — 41 (188) (147) Balance as of December 31, 2018 $ — $ (306) $ (13) $ (319) 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 (Loss) before Reclassifications — (55) 38 (17) Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) — 10 (6) 4 Net Current Period Other Comprehensive Income (Loss) — (45) 32 (13) Net Change in Accumulated Other Comprehensive Income (Loss) — (114) 32 (82) Balance as of December 31, 2019 $ — $ (420) $ 19 $ (401) Other Comprehensive Income (Loss) before Reclassifications — (48) 41 (7) Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) — 9 (20) (11) Net Current Period Other Comprehensive Income (Loss) — (39) 21 (18) Balance as of December 31, 2020 $ — $ (459) $ 40 $ (419) PSEG Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) to Income Statement Year Ended December 31, 2018 Description of Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) Location of Pre-Tax Amount in Statement of Operations Pre-Tax Amount Tax (Expense) Benefit After-Tax Amount Millions Pension and OPEB Plans Amortization of Prior Service (Cost) Credit Non-Operating Pension and OPEB Credits (Costs) $ 6 $ (2) $ 4 Amortization of Actuarial Loss Non-Operating Pension and OPEB Credits (Costs) (47) 14 (33) Total Pension and OPEB Plans (41) 12 (29) Available-for-Sale Securities Realized Gains (Losses) Net Gains (Losses) on Trust Investments (13) 5 (8) Total Available-for-Sale Securities (13) 5 (8) Total $ (54) $ 17 $ (37) PSEG Power Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) to Income Statement Year Ended December 31, 2018 Description of Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) Location of Pre-Tax Amount in Statement of Operations Pre-Tax Amount Tax (Expense) Benefit After-Tax Amount Millions Pension and OPEB Plans Amortization of Prior Service (Cost) Credit Non-Operating Pension and OPEB Credits (Costs) $ 5 $ (1) $ 4 Amortization of Actuarial Loss Non-Operating Pension and OPEB Credits (Costs) (40) 11 (29) Total Pension and OPEB Plans (35) 10 (25) Available-for-Sale Securities Realized Gains (Losses) Net Gains (Losses) on Trust Investments (11) 5 (6) Total Available-for-Sale Securities (11) 5 (6) Total $ (46) $ 15 $ (31) PSEG Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) to Income Statement Year Ended December 31, 2019 Description of Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) Location of Pre-Tax Amount in Statement of Operations Pre-Tax Amount Tax (Expense) Benefit After-Tax Amount Millions Cash Flow Hedges Interest Rate Swaps Interest Expense $ (4) $ 1 $ (3) Total Cash Flow Hedges (4) 1 (3) Pension and OPEB Plans Amortization of Prior Service (Cost) Credit Non-Operating Pension and OPEB Credits (Costs) 26 (7) 19 Amortization of Actuarial Loss Non-Operating Pension and OPEB Credits (Costs) (43) 12 (31) Total Pension and OPEB Plans (17) 5 (12) Available-for-Sale Securities Realized Gains (Losses) Net Gains (Losses) on Trust Investments 13 (5) 8 Total Available-for-Sale Securities 13 (5) 8 Total $ (8) $ 1 $ (7) PSEG Power Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) to Income Statement Year Ended December 31, 2019 Description of Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) Location of Pre-Tax Amount in Statement of Operations Pre-Tax Amount Tax (Expense) Benefit After-Tax Amount Millions Pension and OPEB Plans Amortization of Prior Service (Cost) Credit Non-Operating Pension and OPEB Credits (Costs) $ 23 $ (7) $ 16 Amortization of Actuarial Loss Non-Operating Pension and OPEB Credits (Costs) (36) 10 (26) Total Pension and OPEB Plans (13) 3 (10) Available-for-Sale Securities Realized Gains (Losses) Net Gains (Losses) on Trust Investments 10 (4) 6 Total Available-for-Sale Securities 10 (4) 6 Total $ (3) $ (1) $ (4) PSEG Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) to Income Statement Year Ended December 31, 2020 Description of Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) Location of Pre-Tax Amount in Statement of Operations Pre-Tax Amount Tax (Expense) Benefit After-Tax Amount Millions Cash Flow Hedges Interest Rate Swaps Interest Expense $ (14) $ 4 $ (10) Total Cash Flow Hedges (14) 4 (10) Pension and OPEB Plans Amortization of Prior Service (Cost) Credit Non-Operating Pension and OPEB Credits (Costs) 24 (7) 17 Amortization of Actuarial Loss Non-Operating Pension and OPEB Credits (Costs) (40) 11 (29) Total Pension and OPEB Plans (16) 4 (12) Available-for-Sale Securities Realized Gains (Losses) and Impairments Net Gains (Losses) on Trust Investments 42 (16) 26 Total Available-for-Sale Securities 42 (16) 26 Total $ 12 $ (8) $ 4 PSEG Power Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) to Income Statement Year Ended December 31, 2020 Description of Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) Location of Pre-Tax Amount in Statement of Operations Pre-Tax Amount Tax (Expense) Benefit After-Tax Amount Millions Pension and OPEB Plans Amortization of Prior Service (Cost) Credit Non-Operating Pension and OPEB Credits (Costs) $ 21 $ (6) $ 15 Amortization of Actuarial Loss Non-Operating Pension and OPEB Credits (Costs) (34) 10 (24) Total Pension and OPEB Plans (13) 4 (9) Available-for-Sale Securities Realized Gains (Losses) and Impairments Net Gains (Losses) on Trust Investments 34 (14) 20 Total Available-for-Sale Securities 34 (14) 20 Total $ 21 $ (10) $ 11 |
PSEG Power LLC | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Accumulated Other Comprehensive Income (Loss), Net of Tax | Accumulated Other Comprehensive Income (Loss), Net of Tax PSEG Other Comprehensive Income (Loss) Accumulated Other Comprehensive Income (Loss) Cash Flow Hedges Pension and OPEB Plans Available-for -Sale Securities Total Millions Balance as of December 31, 2017 $ — $ (406) $ 177 $ (229) Cumulative Effect Adjustment to Reclassify Unrealized Net Gains on Equity Investments to Retained Earnings — — (176) (176) Current Period Other Comprehensive Income (Loss) Other Comprehensive Income (Loss) before Reclassifications (1) 17 (25) (9) Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) — 29 8 37 Net Current Period Other Comprehensive Income (Loss) (1) 46 (17) 28 Net Change in Accumulated Other Comprehensive Income (Loss) (1) 46 (193) (148) Balance as of December 31, 2018 $ (1) $ (360) $ (16) $ (377) 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 (Loss) before Reclassifications (17) (70) 49 (38) Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) 3 12 (8) 7 Net Current Period Other Comprehensive Income (Loss) (14) (58) 41 (31) Net Change in Accumulated Other Comprehensive Income (Loss) (14) (139) 41 (112) Balance as of December 31, 2019 $ (15) $ (499) $ 25 $ (489) Other Comprehensive Income (Loss) before Reclassifications (4) (58) 51 (11) Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) 10 12 (26) (4) Net Current Period Other Comprehensive Income (Loss) 6 (46) 25 (15) Balance as of December 31, 2020 $ (9) $ (545) $ 50 $ (504) PSEG Power Other Comprehensive Income (Loss) Accumulated Other Comprehensive Income (Loss) Cash Flow Hedges Pension and OPEB Plans Available-for -Sale Securities Total Millions Balance as of December 31, 2017 $ — $ (347) $ 175 $ (172) Cumulative Effect Adjustment to Reclassify Unrealized Net Gains on Equity Investments to Retained Earnings — — (175) (175) Current Period Other Comprehensive Income (Loss) Other Comprehensive Income (Loss) before Reclassifications — 16 (19) (3) Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) — 25 6 31 Net Current Period Other Comprehensive Income (Loss) — 41 (13) 28 Net Change in Accumulated Other Comprehensive Income (Loss) — 41 (188) (147) Balance as of December 31, 2018 $ — $ (306) $ (13) $ (319) 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 (Loss) before Reclassifications — (55) 38 (17) Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) — 10 (6) 4 Net Current Period Other Comprehensive Income (Loss) — (45) 32 (13) Net Change in Accumulated Other Comprehensive Income (Loss) — (114) 32 (82) Balance as of December 31, 2019 $ — $ (420) $ 19 $ (401) Other Comprehensive Income (Loss) before Reclassifications — (48) 41 (7) Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) — 9 (20) (11) Net Current Period Other Comprehensive Income (Loss) — (39) 21 (18) Balance as of December 31, 2020 $ — $ (459) $ 40 $ (419) PSEG Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) to Income Statement Year Ended December 31, 2018 Description of Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) Location of Pre-Tax Amount in Statement of Operations Pre-Tax Amount Tax (Expense) Benefit After-Tax Amount Millions Pension and OPEB Plans Amortization of Prior Service (Cost) Credit Non-Operating Pension and OPEB Credits (Costs) $ 6 $ (2) $ 4 Amortization of Actuarial Loss Non-Operating Pension and OPEB Credits (Costs) (47) 14 (33) Total Pension and OPEB Plans (41) 12 (29) Available-for-Sale Securities Realized Gains (Losses) Net Gains (Losses) on Trust Investments (13) 5 (8) Total Available-for-Sale Securities (13) 5 (8) Total $ (54) $ 17 $ (37) PSEG Power Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) to Income Statement Year Ended December 31, 2018 Description of Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) Location of Pre-Tax Amount in Statement of Operations Pre-Tax Amount Tax (Expense) Benefit After-Tax Amount Millions Pension and OPEB Plans Amortization of Prior Service (Cost) Credit Non-Operating Pension and OPEB Credits (Costs) $ 5 $ (1) $ 4 Amortization of Actuarial Loss Non-Operating Pension and OPEB Credits (Costs) (40) 11 (29) Total Pension and OPEB Plans (35) 10 (25) Available-for-Sale Securities Realized Gains (Losses) Net Gains (Losses) on Trust Investments (11) 5 (6) Total Available-for-Sale Securities (11) 5 (6) Total $ (46) $ 15 $ (31) PSEG Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) to Income Statement Year Ended December 31, 2019 Description of Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) Location of Pre-Tax Amount in Statement of Operations Pre-Tax Amount Tax (Expense) Benefit After-Tax Amount Millions Cash Flow Hedges Interest Rate Swaps Interest Expense $ (4) $ 1 $ (3) Total Cash Flow Hedges (4) 1 (3) Pension and OPEB Plans Amortization of Prior Service (Cost) Credit Non-Operating Pension and OPEB Credits (Costs) 26 (7) 19 Amortization of Actuarial Loss Non-Operating Pension and OPEB Credits (Costs) (43) 12 (31) Total Pension and OPEB Plans (17) 5 (12) Available-for-Sale Securities Realized Gains (Losses) Net Gains (Losses) on Trust Investments 13 (5) 8 Total Available-for-Sale Securities 13 (5) 8 Total $ (8) $ 1 $ (7) PSEG Power Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) to Income Statement Year Ended December 31, 2019 Description of Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) Location of Pre-Tax Amount in Statement of Operations Pre-Tax Amount Tax (Expense) Benefit After-Tax Amount Millions Pension and OPEB Plans Amortization of Prior Service (Cost) Credit Non-Operating Pension and OPEB Credits (Costs) $ 23 $ (7) $ 16 Amortization of Actuarial Loss Non-Operating Pension and OPEB Credits (Costs) (36) 10 (26) Total Pension and OPEB Plans (13) 3 (10) Available-for-Sale Securities Realized Gains (Losses) Net Gains (Losses) on Trust Investments 10 (4) 6 Total Available-for-Sale Securities 10 (4) 6 Total $ (3) $ (1) $ (4) PSEG Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) to Income Statement Year Ended December 31, 2020 Description of Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) Location of Pre-Tax Amount in Statement of Operations Pre-Tax Amount Tax (Expense) Benefit After-Tax Amount Millions Cash Flow Hedges Interest Rate Swaps Interest Expense $ (14) $ 4 $ (10) Total Cash Flow Hedges (14) 4 (10) Pension and OPEB Plans Amortization of Prior Service (Cost) Credit Non-Operating Pension and OPEB Credits (Costs) 24 (7) 17 Amortization of Actuarial Loss Non-Operating Pension and OPEB Credits (Costs) (40) 11 (29) Total Pension and OPEB Plans (16) 4 (12) Available-for-Sale Securities Realized Gains (Losses) and Impairments Net Gains (Losses) on Trust Investments 42 (16) 26 Total Available-for-Sale Securities 42 (16) 26 Total $ 12 $ (8) $ 4 PSEG Power Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) to Income Statement Year Ended December 31, 2020 Description of Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) Location of Pre-Tax Amount in Statement of Operations Pre-Tax Amount Tax (Expense) Benefit After-Tax Amount Millions Pension and OPEB Plans Amortization of Prior Service (Cost) Credit Non-Operating Pension and OPEB Credits (Costs) $ 21 $ (6) $ 15 Amortization of Actuarial Loss Non-Operating Pension and OPEB Credits (Costs) (34) 10 (24) Total Pension and OPEB Plans (13) 4 (9) Available-for-Sale Securities Realized Gains (Losses) and Impairments Net Gains (Losses) on Trust Investments 34 (14) 20 Total Available-for-Sale Securities 34 (14) 20 Total $ 21 $ (10) $ 11 |
Earnings Per Share (EPS) and Di
Earnings Per Share (EPS) and Dividends | 12 Months Ended |
Dec. 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 PSUs or RSUs. For additional information on PSEG’s stock compensation plans see Note 20. Stock Based Compensation. The following table shows the effect of these stock options, PSUs and RSUs on the weighted average number of shares outstanding used in calculating diluted EPS: Years Ended December 31, 2020 2019 2018 Basic Diluted Basic Diluted Basic Diluted EPS Numerator: (Millions) Net Income $ 1,905 $ 1,905 $ 1,693 $ 1,693 $ 1,438 $ 1,438 EPS Denominator: (Millions) Weighted Average Common Shares Outstanding 504 504 504 504 504 504 Effect of Stock Based Compensation Awards — 3 — 3 — 3 Total Shares 504 507 504 507 504 507 EPS: Net Income $ 3.78 $ 3.76 $ 3.35 $ 3.33 $ 2.85 $ 2.83 For additional information on all the types of long-term incentive awards, see Note 20. Stock Based Compensation. Dividends Years Ended December 31, Dividend Payments on Common Stock 2020 2019 2018 Per Share $ 1.96 $ 1.88 $ 1.80 in Millions $ 991 $ 950 $ 910 On February 16, 2021, PSEG’s Board of Directors approved a $0.51 per share common stock dividend for the first quarter of 2021. |
Financial Information By Busine
Financial Information By Business Segments | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | |
Financial Information By Business Segments | Financial Information by Business Segment Basis of Organization PSEG’s, PSE&G’s and PSEG Power’s operating segments were determined by management in accordance with GAAP. These segments were determined based on how management measures performance based on segment Net Income, as illustrated in the following table, and how resources are allocated to each business. PSEG’s reportable segments are PSE&G and PSEG Power. PSE&G and PSEG Power each represent a single reportable segment and therefore no separate segment information is provided for these Registrants. PSE&G PSE&G earns revenues from its tariffs, under which it provides electric transmission and electric and gas distribution services to residential, commercial and industrial customers in New Jersey. The rates charged for electric transmission are regulated by FERC while the rates charged for electric and gas distribution are regulated by the BPU. Revenues are also earned from several other activities such as solar investments, sundry sales, the appliance service business, wholesale transmission services and other miscellaneous services. PSEG Power PSEG Power earns revenues by selling energy, capacity and ancillary services on a wholesale basis under contract to power marketers and to load-serving entities and by bidding energy, capacity and ancillary services into the markets for these products. A significant portion of PSEG Power’s revenue is obtained from the various ISOs in which PSEG Power operates. The ISOs act similarly to a clearing house for all of its members in that all revenues paid out are collected from market participants based on their consumption of energy and energy-related products. PSEG Power also enters into bilateral contracts for energy, capacity, FTRs, gas, emission allowances and other energy-related contracts to optimize the value of its portfolio of generating assets and its electric and gas supply obligations. In addition, PSEG Power’s Salem 1, Salem 2 and Hope Creek nuclear plants receive ZEC revenue from the EDCs in New Jersey including PSE&G. Other This category includes amounts applicable to Energy Holdings and PSEG LI, which are below the quantitative threshold for separate disclosure as reportable segments. Other also includes amounts applicable to PSEG (parent corporation) and Services. PSE&G PSEG Power Other (A) Eliminations (B) Consolidated Millions Year Ended December 31, 2020 Operating Revenues $ 6,608 $ 3,634 $ 595 $ (1,234) $ 9,603 Depreciation and Amortization 887 368 30 — 1,285 Operating Income (Loss) 1,639 603 28 — 2,270 Income from Equity Method Investments — 14 — — 14 Interest Income 17 6 5 (3) 25 Interest Expense 388 121 94 (3) 600 Income (Loss) before Income Taxes 1,567 782 (48) — 2,301 Income Tax Expense (Benefit) 240 188 (32) — 396 Net Income (Loss) (C) $ 1,327 $ 594 $ (16) $ — $ 1,905 Gross Additions to Long-Lived Assets $ 2,507 $ 404 $ 12 $ — $ 2,923 As of December 31, 2020 Total Assets $ 35,581 $ 12,704 $ 2,692 $ (927) $ 50,050 Investments in Equity Method Subsidiaries $ — $ 64 $ — $ — $ 64 PSE&G PSEG Power Other (A) Eliminations (B) Consolidated Millions Year Ended December 31, 2019 Operating Revenues $ 6,625 $ 4,385 $ 549 $ (1,483) $ 10,076 Depreciation and Amortization 837 377 34 — 1,248 Operating Income (Loss) 1,469 448 26 — 1,943 Income from Equity Method Investments — 14 — — 14 Interest Income 18 7 6 (5) 26 Interest Expense 361 119 94 (5) 569 Income (Loss) before Income Taxes 1,343 671 (64) — 1,950 Income Tax Expense (Benefit) 93 203 (39) — 257 Net Income (Loss) (C) $ 1,250 $ 468 $ (25) $ — $ 1,693 Gross Additions to Long-Lived Assets $ 2,542 $ 607 $ 17 $ — $ 3,166 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 PSE&G PSEG Power Other (A) Eliminations (B) Consolidated Millions Year Ended December 31, 2018 Operating Revenues $ 6,471 $ 4,146 $ 571 $ (1,492) $ 9,696 Depreciation and Amortization 770 354 34 — 1,158 Operating Income (Loss) 1,606 596 96 — 2,298 Income from Equity Method Investments — 15 — — 15 Interest Income 21 5 9 (6) 29 Interest Expense 333 76 73 (6) 476 Income (Loss) before Income Taxes 1,411 431 13 — 1,855 Income Tax Expense (Benefit) 344 66 7 — 417 Net Income (Loss) $ 1,067 $ 365 $ 6 $ — $ 1,438 Gross Additions to Long-Lived Assets $ 2,896 $ 996 $ 20 $ — $ 3,912 As of December 31, 2018 Total Assets $ 31,109 $ 12,594 $ 2,604 $ (981) $ 45,326 Investments in Equity Method Subsidiaries $ — $ 86 $ — $ — $ 86 (A) Includes amounts applicable to Energy Holdings and PSEG LI, which are below the quantitative threshold for separate disclosure as reportable segments. Other also includes amounts applicable to PSEG (parent corporation) and Services. (B) Intercompany eliminations primarily relate to intercompany transactions between PSE&G and PSEG Power. For a further discussion of the intercompany transactions between PSE&G and PSEG Power, see Note 26. Related-Party Transactions. (C) Includes an after-tax gain of $86 million in the year ended December 31, 2020 related to the sale of PSEG Power’s interest in the Yards Creek generation facility and an after-tax loss of $286 million in the year ended December 31, 2019 related to the sale of PSEG Power’s ownership interests in the Keystone and Conemaugh fossil generation plants. See Note 4. Early Plant Retirements/Asset Dispositions for additional information. |
Public Service Electric and Gas Company | |
Segment Reporting Information [Line Items] | |
Financial Information By Business Segments | Financial Information by Business Segment Basis of Organization PSEG’s, PSE&G’s and PSEG Power’s operating segments were determined by management in accordance with GAAP. These segments were determined based on how management measures performance based on segment Net Income, as illustrated in the following table, and how resources are allocated to each business. PSEG’s reportable segments are PSE&G and PSEG Power. PSE&G and PSEG Power each represent a single reportable segment and therefore no separate segment information is provided for these Registrants. PSE&G PSE&G earns revenues from its tariffs, under which it provides electric transmission and electric and gas distribution services to residential, commercial and industrial customers in New Jersey. The rates charged for electric transmission are regulated by FERC while the rates charged for electric and gas distribution are regulated by the BPU. Revenues are also earned from several other activities such as solar investments, sundry sales, the appliance service business, wholesale transmission services and other miscellaneous services. PSEG Power PSEG Power earns revenues by selling energy, capacity and ancillary services on a wholesale basis under contract to power marketers and to load-serving entities and by bidding energy, capacity and ancillary services into the markets for these products. A significant portion of PSEG Power’s revenue is obtained from the various ISOs in which PSEG Power operates. The ISOs act similarly to a clearing house for all of its members in that all revenues paid out are collected from market participants based on their consumption of energy and energy-related products. PSEG Power also enters into bilateral contracts for energy, capacity, FTRs, gas, emission allowances and other energy-related contracts to optimize the value of its portfolio of generating assets and its electric and gas supply obligations. In addition, PSEG Power’s Salem 1, Salem 2 and Hope Creek nuclear plants receive ZEC revenue from the EDCs in New Jersey including PSE&G. Other This category includes amounts applicable to Energy Holdings and PSEG LI, which are below the quantitative threshold for separate disclosure as reportable segments. Other also includes amounts applicable to PSEG (parent corporation) and Services. PSE&G PSEG Power Other (A) Eliminations (B) Consolidated Millions Year Ended December 31, 2020 Operating Revenues $ 6,608 $ 3,634 $ 595 $ (1,234) $ 9,603 Depreciation and Amortization 887 368 30 — 1,285 Operating Income (Loss) 1,639 603 28 — 2,270 Income from Equity Method Investments — 14 — — 14 Interest Income 17 6 5 (3) 25 Interest Expense 388 121 94 (3) 600 Income (Loss) before Income Taxes 1,567 782 (48) — 2,301 Income Tax Expense (Benefit) 240 188 (32) — 396 Net Income (Loss) (C) $ 1,327 $ 594 $ (16) $ — $ 1,905 Gross Additions to Long-Lived Assets $ 2,507 $ 404 $ 12 $ — $ 2,923 As of December 31, 2020 Total Assets $ 35,581 $ 12,704 $ 2,692 $ (927) $ 50,050 Investments in Equity Method Subsidiaries $ — $ 64 $ — $ — $ 64 PSE&G PSEG Power Other (A) Eliminations (B) Consolidated Millions Year Ended December 31, 2019 Operating Revenues $ 6,625 $ 4,385 $ 549 $ (1,483) $ 10,076 Depreciation and Amortization 837 377 34 — 1,248 Operating Income (Loss) 1,469 448 26 — 1,943 Income from Equity Method Investments — 14 — — 14 Interest Income 18 7 6 (5) 26 Interest Expense 361 119 94 (5) 569 Income (Loss) before Income Taxes 1,343 671 (64) — 1,950 Income Tax Expense (Benefit) 93 203 (39) — 257 Net Income (Loss) (C) $ 1,250 $ 468 $ (25) $ — $ 1,693 Gross Additions to Long-Lived Assets $ 2,542 $ 607 $ 17 $ — $ 3,166 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 PSE&G PSEG Power Other (A) Eliminations (B) Consolidated Millions Year Ended December 31, 2018 Operating Revenues $ 6,471 $ 4,146 $ 571 $ (1,492) $ 9,696 Depreciation and Amortization 770 354 34 — 1,158 Operating Income (Loss) 1,606 596 96 — 2,298 Income from Equity Method Investments — 15 — — 15 Interest Income 21 5 9 (6) 29 Interest Expense 333 76 73 (6) 476 Income (Loss) before Income Taxes 1,411 431 13 — 1,855 Income Tax Expense (Benefit) 344 66 7 — 417 Net Income (Loss) $ 1,067 $ 365 $ 6 $ — $ 1,438 Gross Additions to Long-Lived Assets $ 2,896 $ 996 $ 20 $ — $ 3,912 As of December 31, 2018 Total Assets $ 31,109 $ 12,594 $ 2,604 $ (981) $ 45,326 Investments in Equity Method Subsidiaries $ — $ 86 $ — $ — $ 86 (A) Includes amounts applicable to Energy Holdings and PSEG LI, which are below the quantitative threshold for separate disclosure as reportable segments. Other also includes amounts applicable to PSEG (parent corporation) and Services. (B) Intercompany eliminations primarily relate to intercompany transactions between PSE&G and PSEG Power. For a further discussion of the intercompany transactions between PSE&G and PSEG Power, see Note 26. Related-Party Transactions. (C) Includes an after-tax gain of $86 million in the year ended December 31, 2020 related to the sale of PSEG Power’s interest in the Yards Creek generation facility and an after-tax loss of $286 million in the year ended December 31, 2019 related to the sale of PSEG Power’s ownership interests in the Keystone and Conemaugh fossil generation plants. See Note 4. Early Plant Retirements/Asset Dispositions for additional information. |
PSEG Power LLC | |
Segment Reporting Information [Line Items] | |
Financial Information By Business Segments | Financial Information by Business Segment Basis of Organization PSEG’s, PSE&G’s and PSEG Power’s operating segments were determined by management in accordance with GAAP. These segments were determined based on how management measures performance based on segment Net Income, as illustrated in the following table, and how resources are allocated to each business. PSEG’s reportable segments are PSE&G and PSEG Power. PSE&G and PSEG Power each represent a single reportable segment and therefore no separate segment information is provided for these Registrants. PSE&G PSE&G earns revenues from its tariffs, under which it provides electric transmission and electric and gas distribution services to residential, commercial and industrial customers in New Jersey. The rates charged for electric transmission are regulated by FERC while the rates charged for electric and gas distribution are regulated by the BPU. Revenues are also earned from several other activities such as solar investments, sundry sales, the appliance service business, wholesale transmission services and other miscellaneous services. PSEG Power PSEG Power earns revenues by selling energy, capacity and ancillary services on a wholesale basis under contract to power marketers and to load-serving entities and by bidding energy, capacity and ancillary services into the markets for these products. A significant portion of PSEG Power’s revenue is obtained from the various ISOs in which PSEG Power operates. The ISOs act similarly to a clearing house for all of its members in that all revenues paid out are collected from market participants based on their consumption of energy and energy-related products. PSEG Power also enters into bilateral contracts for energy, capacity, FTRs, gas, emission allowances and other energy-related contracts to optimize the value of its portfolio of generating assets and its electric and gas supply obligations. In addition, PSEG Power’s Salem 1, Salem 2 and Hope Creek nuclear plants receive ZEC revenue from the EDCs in New Jersey including PSE&G. Other This category includes amounts applicable to Energy Holdings and PSEG LI, which are below the quantitative threshold for separate disclosure as reportable segments. Other also includes amounts applicable to PSEG (parent corporation) and Services. PSE&G PSEG Power Other (A) Eliminations (B) Consolidated Millions Year Ended December 31, 2020 Operating Revenues $ 6,608 $ 3,634 $ 595 $ (1,234) $ 9,603 Depreciation and Amortization 887 368 30 — 1,285 Operating Income (Loss) 1,639 603 28 — 2,270 Income from Equity Method Investments — 14 — — 14 Interest Income 17 6 5 (3) 25 Interest Expense 388 121 94 (3) 600 Income (Loss) before Income Taxes 1,567 782 (48) — 2,301 Income Tax Expense (Benefit) 240 188 (32) — 396 Net Income (Loss) (C) $ 1,327 $ 594 $ (16) $ — $ 1,905 Gross Additions to Long-Lived Assets $ 2,507 $ 404 $ 12 $ — $ 2,923 As of December 31, 2020 Total Assets $ 35,581 $ 12,704 $ 2,692 $ (927) $ 50,050 Investments in Equity Method Subsidiaries $ — $ 64 $ — $ — $ 64 PSE&G PSEG Power Other (A) Eliminations (B) Consolidated Millions Year Ended December 31, 2019 Operating Revenues $ 6,625 $ 4,385 $ 549 $ (1,483) $ 10,076 Depreciation and Amortization 837 377 34 — 1,248 Operating Income (Loss) 1,469 448 26 — 1,943 Income from Equity Method Investments — 14 — — 14 Interest Income 18 7 6 (5) 26 Interest Expense 361 119 94 (5) 569 Income (Loss) before Income Taxes 1,343 671 (64) — 1,950 Income Tax Expense (Benefit) 93 203 (39) — 257 Net Income (Loss) (C) $ 1,250 $ 468 $ (25) $ — $ 1,693 Gross Additions to Long-Lived Assets $ 2,542 $ 607 $ 17 $ — $ 3,166 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 PSE&G PSEG Power Other (A) Eliminations (B) Consolidated Millions Year Ended December 31, 2018 Operating Revenues $ 6,471 $ 4,146 $ 571 $ (1,492) $ 9,696 Depreciation and Amortization 770 354 34 — 1,158 Operating Income (Loss) 1,606 596 96 — 2,298 Income from Equity Method Investments — 15 — — 15 Interest Income 21 5 9 (6) 29 Interest Expense 333 76 73 (6) 476 Income (Loss) before Income Taxes 1,411 431 13 — 1,855 Income Tax Expense (Benefit) 344 66 7 — 417 Net Income (Loss) $ 1,067 $ 365 $ 6 $ — $ 1,438 Gross Additions to Long-Lived Assets $ 2,896 $ 996 $ 20 $ — $ 3,912 As of December 31, 2018 Total Assets $ 31,109 $ 12,594 $ 2,604 $ (981) $ 45,326 Investments in Equity Method Subsidiaries $ — $ 86 $ — $ — $ 86 (A) Includes amounts applicable to Energy Holdings and PSEG LI, which are below the quantitative threshold for separate disclosure as reportable segments. Other also includes amounts applicable to PSEG (parent corporation) and Services. (B) Intercompany eliminations primarily relate to intercompany transactions between PSE&G and PSEG Power. For a further discussion of the intercompany transactions between PSE&G and PSEG Power, see Note 26. Related-Party Transactions. (C) Includes an after-tax gain of $86 million in the year ended December 31, 2020 related to the sale of PSEG Power’s interest in the Yards Creek generation facility and an after-tax loss of $286 million in the year ended December 31, 2019 related to the sale of PSEG Power’s ownership interests in the Keystone and Conemaugh fossil generation plants. See Note 4. Early Plant Retirements/Asset Dispositions for additional information. |
Related-Party Transactions
Related-Party Transactions | 12 Months Ended |
Dec. 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: Years Ended December 31, Related Party Transactions 2020 2019 2018 Millions Billings from Affiliates: Net Billings from PSEG Power (A) $ 1,207 $ 1,512 $ 1,514 Administrative Billings from Services (B) 337 310 333 Total Billings from Affiliates $ 1,544 $ 1,822 $ 1,847 Years Ended December 31, Related Party Transactions 2020 2019 Millions Receivables from PSEG (C) $ — $ 1 Payable to PSEG Power (A) $ 273 $ 307 Payable to Services (B) 95 83 Payable to PSEG (C) 111 — Accounts Payable—Affiliated Companies $ 479 $ 390 Working Capital Advances to Services (D) $ 33 $ 33 Long-Term Accrued Taxes Payable $ 7 $ 115 PSEG Power The financial statements for PSEG Power include transactions with related parties presented as follows: Years Ended December 31, Related Party Transactions 2020 2019 2018 Millions Billings to Affiliates: Net Billings to PSE&G (A) $ 1,207 $ 1,512 1,514 Billings from Affiliates: Administrative Billings from Services (B) $ 160 $ 156 $ 145 Years Ended December 31, Related Party Transactions 2020 2019 Millions Receivable from PSE&G (A) $ 273 $ 307 Receivables from PSEG (C) 44 101 Accounts Receivable—Affiliated Companies $ 317 $ 408 Payable to Services (B) $ 13 $ 5 Accounts Payable—Affiliated Companies $ 13 $ 5 Short-Term Loan to (from) Affiliate (E) $ 161 $ 149 Working Capital Advances to Services (D) $ 17 $ 17 Long-Term Accrued Taxes Payable $ 57 $ 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 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 | |
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: Years Ended December 31, Related Party Transactions 2020 2019 2018 Millions Billings from Affiliates: Net Billings from PSEG Power (A) $ 1,207 $ 1,512 $ 1,514 Administrative Billings from Services (B) 337 310 333 Total Billings from Affiliates $ 1,544 $ 1,822 $ 1,847 Years Ended December 31, Related Party Transactions 2020 2019 Millions Receivables from PSEG (C) $ — $ 1 Payable to PSEG Power (A) $ 273 $ 307 Payable to Services (B) 95 83 Payable to PSEG (C) 111 — Accounts Payable—Affiliated Companies $ 479 $ 390 Working Capital Advances to Services (D) $ 33 $ 33 Long-Term Accrued Taxes Payable $ 7 $ 115 PSEG Power The financial statements for PSEG Power include transactions with related parties presented as follows: Years Ended December 31, Related Party Transactions 2020 2019 2018 Millions Billings to Affiliates: Net Billings to PSE&G (A) $ 1,207 $ 1,512 1,514 Billings from Affiliates: Administrative Billings from Services (B) $ 160 $ 156 $ 145 Years Ended December 31, Related Party Transactions 2020 2019 Millions Receivable from PSE&G (A) $ 273 $ 307 Receivables from PSEG (C) 44 101 Accounts Receivable—Affiliated Companies $ 317 $ 408 Payable to Services (B) $ 13 $ 5 Accounts Payable—Affiliated Companies $ 13 $ 5 Short-Term Loan to (from) Affiliate (E) $ 161 $ 149 Working Capital Advances to Services (D) $ 17 $ 17 Long-Term Accrued Taxes Payable $ 57 $ 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 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 LLC | |
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: Years Ended December 31, Related Party Transactions 2020 2019 2018 Millions Billings from Affiliates: Net Billings from PSEG Power (A) $ 1,207 $ 1,512 $ 1,514 Administrative Billings from Services (B) 337 310 333 Total Billings from Affiliates $ 1,544 $ 1,822 $ 1,847 Years Ended December 31, Related Party Transactions 2020 2019 Millions Receivables from PSEG (C) $ — $ 1 Payable to PSEG Power (A) $ 273 $ 307 Payable to Services (B) 95 83 Payable to PSEG (C) 111 — Accounts Payable—Affiliated Companies $ 479 $ 390 Working Capital Advances to Services (D) $ 33 $ 33 Long-Term Accrued Taxes Payable $ 7 $ 115 PSEG Power The financial statements for PSEG Power include transactions with related parties presented as follows: Years Ended December 31, Related Party Transactions 2020 2019 2018 Millions Billings to Affiliates: Net Billings to PSE&G (A) $ 1,207 $ 1,512 1,514 Billings from Affiliates: Administrative Billings from Services (B) $ 160 $ 156 $ 145 Years Ended December 31, Related Party Transactions 2020 2019 Millions Receivable from PSE&G (A) $ 273 $ 307 Receivables from PSEG (C) 44 101 Accounts Receivable—Affiliated Companies $ 317 $ 408 Payable to Services (B) $ 13 $ 5 Accounts Payable—Affiliated Companies $ 13 $ 5 Short-Term Loan to (from) Affiliate (E) $ 161 $ 149 Working Capital Advances to Services (D) $ 17 $ 17 Long-Term Accrued Taxes Payable $ 57 $ 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 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. |
Valuation And Qualifying Accoun
Valuation And Qualifying Accounts | 12 Months Ended |
Dec. 31, 2020 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Valuation And Qualifying Accounts | Schedule II—Valuation and Qualifying Accounts Years Ended December 31, 2020—December 31, 2018 PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED Column A Column B Column C Additions Column D Column E Description Balance at Charged to Charged to Deductions- Balance at Millions 2020 Allowance for Credit Losses $ 68 (D) $ 175 (A) $ — $ 37 (B) $ 206 Materials and Supplies Valuation Reserve 11 1 — 2 (C) 10 2019 Allowance for Credit Losses $ 63 $ 87 (A) $ — $ 90 (B) $ 60 Materials and Supplies Valuation Reserve 9 3 — 1 (C) 11 2018 Allowance for Credit Losses $ 59 $ 91 (A) $ — $ 87 (B) $ 63 Materials and Supplies Valuation Reserve 7 4 — 2 (C) 9 (A) For a discussion of bad debt recoveries, see Note 1. Organization, Basis of Presentation and Summary of Significant Accounting Policies. (B) Accounts Receivable written off. (C) Reduce reserve to appropriate level and to remove obsolete inventory. (D) Includes $8 million due to the adoption of ASU 2016-13. PUBLIC SERVICE ELECTRIC AND GAS COMPANY Column A Column B Column C Additions Column D Column E Description Balance at Charged to Charged to Deductions- Balance at Millions 2020 Allowance for Credit Losses $ 68 (C) $ 175 (A) $ — $ 37 (B) $ 206 Materials and Supplies Valuation Reserve 2 — — — 2 2019 Allowance for Credit Losses $ 63 $ 87 (A) $ — $ 90 (B) $ 60 Materials and Supplies Valuation Reserve 2 — — — 2 2018 Allowance for Credit Losses $ 59 $ 91 (A) $ — $ 87 (B) $ 63 Materials and Supplies Valuation Reserve — 2 — — 2 (A) For a discussion of bad debt recoveries, see Note 1. Organization, Basis of Presentation and Summary of Significant Accounting Policies. (B) Accounts Receivable written off. (C) Includes $8 million due to the adoption of ASU 2016-13. PSEG POWER LLC Column A Column B Column C Additions Column D Column E Description Balance at Charged to Charged to Deductions- Balance at Millions 2020 Materials and Supplies Valuation Reserve $ 9 $ 1 $ — $ 2 (A) $ 8 2019 Materials and Supplies Valuation Reserve $ 7 $ 3 $ — $ 1 (A) $ 9 2018 Materials and Supplies Valuation Reserve $ 7 $ 2 $ — $ 2 (A) $ 7 |
Organization, Basis Of Presen_2
Organization, Basis Of Presentation And Summary Of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies | |
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 Annual Reports on Form 10-K and in accordance with accounting guidance generally accepted in the United States (GAAP). |
Principles Of Consolidation | Principles of Consolidation Each company consolidates those entities in which it has a controlling interest or is the primary beneficiary. See Note 5. Variable Interest Entity. Entities over which the companies exhibit significant influence, but do not have a controlling interest and/or are not the primary beneficiary, are accounted for under the equity method of accounting. For investments in which significant influence does not exist and the investor is not the primary beneficiary, the cost method of accounting is applied. All significant intercompany accounts and transactions are eliminated in consolidation. PSE&G and PSEG Power also have undivided interests in certain jointly-owned facilities, with each responsible for paying its respective ownership share of construction costs, fuel purchases and operating expenses. PSE&G and PSEG Power consolidate their portion of any revenues and expenses related to their respective jointly-owned facilities in the appropriate revenue and expense categories. |
Accounting For The Effects Of Regulation | Accounting for the Effects of Regulation In accordance with accounting guidance for rate-regulated entities, PSE&G’s financial statements reflect the economic effects of regulation. PSE&G defers the recognition of costs (a Regulatory Asset) or records the recognition of obligations (a Regulatory Liability) if it is probable that, through the rate-making process, there will be a corresponding increase or decrease in future rates. Accordingly, PSE&G has deferred certain costs and recoveries, which are being amortized over various future periods. To the extent that collection of any such costs or payment of liabilities becomes no longer probable as a result of changes in regulation and/or competitive position, the associated Regulatory Asset or Liability is charged or credited to income. Management believes that PSE&G’s T&D businesses continue to meet the accounting requirements for rate-regulated entities. For additional information, see Note 7. Regulatory Assets and Liabilities. |
Cash And Cash Equivalents | Cash, Cash Equivalents and Restricted Cash The following provides a reconciliation of cash, cash equivalents and restricted cash reported within the Consolidated Balance Sheets that sum to the total of the same such amounts in the Consolidated Statements of Cash Flows for the years ended December 31, 2019 and 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 December 31, 2020 Cash and Cash Equivalents $ 204 $ 27 $ 312 $ 543 Restricted Cash in Other Current Assets 7 — — 7 Restricted Cash in Other Noncurrent Assets 22 — — 22 Cash, Cash Equivalents and Restricted Cash $ 233 $ 27 $ 312 $ 572 (A) Includes amounts applicable to PSEG (parent company), Energy Holdings and Services. |
Derivative Financial Instruments | Derivative Instruments Each company uses derivative instruments to manage risk pursuant to its business plans and prudent practices. 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. Changes in the fair market value of the derivative contracts are recorded in earnings. Determining whether a contract qualifies as a derivative requires that management exercise significant judgment, including assessing the contract’s market liquidity. PSEG has determined that contracts to purchase and sell certain products do not meet the definition of a derivative under the current authoritative guidance since they do not provide for net settlement, or the markets are not sufficiently liquid to conclude that physical forward contracts are readily convertible to cash. Under current authoritative guidance, all derivatives are recognized on the balance sheet at their fair value, except for derivatives that are designated as normal purchases and normal sales (NPNS). Further, derivatives that qualify for hedge accounting can be designated as fair value or cash flow hedges. For fair value hedges, changes in fair values for both the derivative and the underlying hedged exposure are recognized in earnings each period. Certain offsetting derivative assets and liabilities 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, these positions are offset on the Consolidated Balance Sheets of PSEG Power and PSEG. For cash flow hedges, the gain or loss on a derivative instrument designated and qualifying as a cash flow hedge is deferred in Accumulated Other Comprehensive Income (Loss) until earnings are affected by the variability of cash flows of the hedged transaction. For derivative contracts that do not qualify or are not designated as cash flow or fair value hedges or as NPNS, changes in fair value are recorded in current period earnings. PSEG does not currently elect fair value or cash flow hedge accounting on its commodity derivative positions. Contracts that qualify for, and are designated, as NPNS are accounted for upon settlement. Contracts which qualify for NPNS are contracts for which physical delivery is probable, they will not be financially settled, and the quantities under contract are expected to be used or sold in the normal course of business over a reasonable period of time. For additional information regarding derivative financial instruments, see Note 18. Financial Risk Management Activities. |
Revenue Recognition | Revenue Recognition PSE&G’s regulated electric and gas revenues are recorded primarily based on services rendered to customers. PSE&G records unbilled revenues for the estimated amount customers will be billed for services rendered from the time meters were last read to the end of the respective accounting period. The unbilled revenue is estimated each month based on usage per day, the number of unbilled days in the period, estimated seasonal loads based upon the time of year and the variance of actual degree-days and temperature-humidity-index hours of the unbilled period from expected norms. Regulated revenues from the transmission of electricity are recognized as services are provided based on a FERC-approved annual formula rate mechanism. This mechanism provides for an annual filing of estimated revenue requirement with rates effective January 1 of each year. After completion of the annual period ending December 31, PSE&G files a true-up whereby it compares its actual revenue requirement to the original estimate to determine any over or under collection of revenue. PSE&G records the estimated financial statement impact of the difference between the actual and the filed revenue requirement as a refund or deferral for future recovery when such amounts are probable and can be reasonably estimated in accordance with accounting guidance for rate-regulated entities. The majority of PSEG Power’s revenues relate to bilateral contracts, which are accounted for on the accrual basis as the energy is delivered. PSEG Power’s revenue also includes changes in the value of energy derivative contracts that are not designated as NPNS. See Note 18. Financial Risk Management Activities for further discussion. PJM Interconnection, L.L.C. (PJM), the Independent System Operator-New England (ISO-NE) and the New York Independent System Operator (NYISO) facilitate the dispatch of energy and energy-related products. PSEG Power generally reports electricity sales and purchases conducted with those individual ISOs on a net hourly basis in either Revenues or Energy Costs in its Consolidated Statement of Operations, the classification of which depends on the net hourly activity. Capacity revenue and expense are also reported net based on PSEG Power’s monthly net sale or purchase position in the individual ISOs. PSEG LI is the primary beneficiary of Long Island Electric Utility Servco, LLC (Servco). For transactions in which Servco acts as principal, Servco records revenues and the related pass-through expenditures separately in Operating Revenues and Operations and Maintenance (O&M) Expense, respectively. See Note 5. Variable Interest Entity for further information. For additional information regarding Revenues, see Note 3. Revenues. |
Depreciation And Amortization | Depreciation and Amortization (D&A) PSE&G calculates depreciation under the straight-line method based on estimated average remaining lives of the several classes of depreciable property. These estimates are reviewed on a periodic basis and necessary adjustments are made as approved by the BPU or FERC. The average depreciation rate stated as a percentage of original cost of depreciable property was as follows: 2020 2019 2018 Avg Rate Avg Rate Avg Rate Electric Transmission 2.41 % 2.41 % 2.42 % Electric Distribution 2.55 % 2.54 % 2.51 % Gas Distribution 1.84 % 1.85 % 1.61 % PSEG Power calculates depreciation on generation-related assets under the straight-line method based on the assets’ estimated useful lives. The estimated useful lives are: • general plant assets—3 years to 20 years • fossil production assets—30 years to 56 years • nuclear generation assets—approximately 60 years to 80 years |
Allowance for Funds Used During Construction (AFUDC) and Interest Capitalized During Construction | Allowance for Funds Used During Construction (AFUDC) and Interest Capitalized During Construction (IDC) AFUDC represents the cost of debt and equity funds used to finance the construction of new utility assets at PSE&G. IDC represents the cost of debt used to finance construction at PSEG Power. The amount of AFUDC or IDC capitalized as Property, Plant and Equipment is included as a reduction of interest charges or other income for the equity portion. The amounts and average rates used to calculate AFUDC or IDC for the years ended December 31, 2020, 2019 and 2018 were as follows: AFUDC/IDC Capitalized 2020 2019 2018 Millions Avg Rate Millions Avg Rate Millions Avg Rate PSE&G $ 112 7.86 % $ 81 7.22 % $ 70 7.74 % PSEG Power $ 10 4.60 % $ 27 4.60 % $ 67 4.60 % |
Income Taxes | Income Taxes PSEG and its subsidiaries file a consolidated federal income tax return and income taxes are allocated to PSEG’s subsidiaries based on the taxable income or loss of each subsidiary on a separate return basis in accordance with a tax-sharing agreement between PSEG and each of its affiliated subsidiaries. Allocations between PSEG and its subsidiaries are recorded through intercompany accounts. Investment tax credits deferred in prior years are being amortized over the useful lives of the related property. Uncertain income tax positions are accounted for using a benefit recognition model with a two-step approach, a more-likely-than-not recognition criterion and a measurement attribute that measures the position as the largest amount of tax benefit that is greater than 50% likely of being realized upon ultimate settlement. If it is not more-likely-than-not that the benefit will be sustained on its technical merits, no benefit will be recorded. Uncertain tax positions that relate only to timing of when an item is included on a tax return are considered to have met the recognition threshold. See Note 22. Income Taxes for further discussion. |
Impairment Of Long-Lived Assets | Impairment of Long-Lived Assets and Leveraged Leases Management evaluates long-lived assets for impairment whenever events or changes in circumstances, such as significant adverse changes in regulation, business climate, counterparty credit worthiness or market conditions, including prolonged periods of adverse commodity and capacity prices or a current expectation that a long-lived asset will be sold or disposed of significantly before the end of its previously estimated useful life, could potentially indicate an asset’s or asset group’s carrying amount may not be recoverable. In such an event, an undiscounted cash flow analysis is performed to determine if an impairment exists. When a long-lived asset’s or asset group’s carrying amount exceeds the associated undiscounted estimated future cash flows, the asset/asset group is considered impaired to the extent that its fair value is less than its carrying amount. An impairment would result in a reduction of the value of the long-lived asset/asset group through a non-cash charge to earnings. For PSEG Power, cash flows for long-lived assets and asset groups are determined at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. The cash flows from the generation units are generally evaluated at a regional portfolio level (PJM, NYISO, ISO-NE) along with cash flows generated from the customer supply and risk management activities, inclusive of cash flows from contracts, including those that are accounted for as derivatives and meet the NPNS scope exception. In certain cases, generation assets are evaluated on an individual basis where those assets are individually contracted on a long-term basis with a third party and operations are independent of other generation assets (typically PSEG Power’s solar units and Kalaeloa). See Note 4. Early Plant Retirements/Asset Dispositions for more information on impairment assessments performed on PSEG Power’s long-lived assets. Energy Holdings’ leveraged leases are comprised of Lease Receivables (net of non-recourse debt), the estimated residual value of leased assets, and unearned and deferred income. Residual values are the estimated values of the leased assets at the end of the respective lease per the original lease terms, net of any subsequent impairments. A review of the residual valuations, which are calculated by discounting the cash flows related to the leased assets after the lease term, is performed at least annually for each asset subject to lease using specific assumptions tailored to each asset. Those valuations are compared to the recorded residual values to determine if an impairment is warranted. |
Accounts Receivable-Allowance for Doubtful Accounts | Accounts Receivable—Allowance for Credit Losses PSE&G’s accounts receivable, including unbilled revenues, are 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 December 31, 2020. PSE&G’s electric bad debt expense is recovered through the Societal Benefits Clause mechanism and incremental gas bad debt has been deferred for future recovery through the COVID-19 Regulatory Asset. See Note 3. Revenues and Note 7. Regulatory Assets and Liabilities. Accounts receivable are charged off in the period in which the receivable is deemed uncollectible. Recoveries of accounts receivable are recorded when it is known they will be received. |
Materials And Supplies And Fuel | Materials and Supplies and Fuel PSE&G’s and PSEG Power’s materials and supplies are carried at average cost and charged to inventory when purchased and expensed or capitalized to Property, Plant and Equipment, as appropriate, when installed or used. 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. The cost |
Property, Plant And Equipment | Property, Plant and Equipment PSE&G’s additions to and replacements of existing property, plant and equipment are capitalized at cost. The cost of maintenance, repair and replacement of minor items of property is charged to expense as incurred. At the time units of depreciable property are retired or otherwise disposed of, the original cost, adjusted for net salvage value, is charged to accumulated depreciation. 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. |
Lessee, Leases [Policy Text Block] | Leases Effective January 1, 2019, PSEG and its subsidiaries adopted new accounting guidance which requires lessees to recognize leases with a term greater than 12 months on the balance sheet using a right-of-use asset approach. PSEG and its subsidiaries, when acting as lessee or lessor, determine if an arrangement is a lease at inception. PSEG assesses contracts to determine if the arrangement conveys (i) the right to control the use of the identified property, (ii) the right to obtain substantially all of the economic benefits from the use of the property, and (iii) the right to direct the use of the property. PSEG and its subsidiaries are neither the lessee nor the lessor in any material leases that are not classified as operating leases. Lessee —Operating Lease Right-of-Use Assets represent the right to use an underlying asset for the lease term and Operating Lease Liabilities represent the obligation to make lease payments arising from the lease. Operating Lease Right-of-Use Assets and Operating Lease Liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. The current portion of Operating Lease Liabilities is included in Other Current Liabilities. Operating Lease Right-of-Use Assets and noncurrent Operating Lease Liabilities are included as separate captions in Noncurrent Assets and Noncurrent Liabilities, respectively, on the Consolidated Balance Sheets of PSEG, PSE&G and PSEG Power. PSEG and its subsidiaries do not recognize Operating Lease Right-of-Use Assets and Operating Lease Liabilities for leases where the term is twelve months or less. PSEG and its subsidiaries recognize the lease payments on a straight-line basis over the term of the leases and variable lease payments in the period in which the obligations for those payments are incurred. As lessee, most of the operating leases of PSEG and its subsidiaries do not provide an implicit rate; therefore, incremental borrowing rates are used based on the information available at commencement date in determining the present value of lease payments. The implicit rate is used when readily determinable. PSE&G’s incremental borrowing rates are based on secured borrowing rates. PSEG’s and PSEG Power’s incremental borrowing rates are generally unsecured rates. Having calculated simulated secured rates for each of PSEG and PSEG Power, it was determined that the difference between the unsecured borrowing rates and the simulated secured rates had an immaterial effect on their recorded Operating Lease Right-of-Use Assets and Operating Lease Liabilities. Services, PSEG LI and other subsidiaries of PSEG that do not borrow funds or issue debt may enter into leases. Since these companies do not have credit ratings and related incremental borrowing rates, PSEG has determined that it is appropriate for these companies to use the incremental borrowing rate of PSEG, the parent company. Lease terms may include options to extend or terminate the lease when it is reasonably certain that such options will be exercised. PSEG and its subsidiaries have lease agreements with lease and non-lease components. For real estate, equipment and vehicle leases, the lease and non-lease components are accounted for as a single lease component. Lessor —Property subject to operating leases, where PSEG or one of its subsidiaries is the lessor, is included in Property, Plant and Equipment and rental income from these leases is included in Operating Revenues. PSEG and its subsidiaries, have lease agreements with lease and non-lease components, which are primarily related to domestic energy generation including solar generation facilities. PSEG and subsidiaries account for the lease and non-lease components as a single lease component. See Note 8. Leases for detailed information on leases. Energy Holdings is the lessor in leveraged leases. Leveraged lease accounting guidance is grandfathered for existing leveraged leases. Energy Holdings’ leveraged leases are accounted for in Operating Revenues and in Noncurrent Long-Term Investments. If modified after January 1, 2019, those leveraged leases will be accounted for as operating or financing leases. See Note 9. Long-Term Investments and Note 10. Financing Receivables. |
Trust Investments | Trust Investments These securities comprise the Nuclear Decommissioning Trust (NDT) Fund, a master independent external trust account maintained to provide for the costs of decommissioning upon termination of operations of PSEG Power’s nuclear facilities and amounts that are deposited to fund a Rabbi Trust which was established to meet the obligations related to non-qualified pension plans and deferred compensation plans. Unrealized gains and losses on equity security investments are recorded in Net Income. The debt securities are classified as available-for-sale with the unrealized gains and losses recorded as a component of Accumulated Other Comprehensive Income (Loss). Realized gains and losses on both equity and available-for-sale debt security investments are recorded in earnings and are included with the unrealized gains and losses on equity securities in Net Gains (Losses) on Trust Investments. Other-than-temporary impairments on NDT and Rabbi Trust debt securities are also included in Net Gains (Losses) on Trust Investments. See Note 11. Trust Investments for further discussion. |
Pension And Other Postretirement Benefits (OPEB) Plan Assets | Pension and Other Postretirement Benefits (OPEB) Plans The market-related value of plan assets held for the qualified pension and OPEB plans is equal to the fair value of those assets as of year-end. Fair value is determined using quoted market prices and independent pricing services based upon the security type as reported by the trustee at the measurement date (December 31) as well as investments in unlisted real estate which are valued via third-party appraisals. PSEG recognizes a long-term receivable primarily related to future funding by LIPA of Servco’s recognized pension and OPEB liabilities. This receivable is presented separately on the Consolidated Balance Sheet of PSEG as a noncurrent asset. Pursuant to the OSA, Servco records expense for contributions to its pension plan trusts and for OPEB payments made to retirees. See Note 14. Pension, Other Postretirement Benefits (OPEB) and Savings Plans for further discussion. |
Basis Adjustment | Basis Adjustment PSE&G and PSEG Power have recorded a Basis Adjustment in their respective Consolidated Balance Sheets related to the generation assets that were transferred from PSE&G to PSEG Power in August 2000 at the price specified by the BPU. Because the transfer was between affiliates, the transaction was recorded at the net book value of the assets and liabilities rather than the transfer price. The difference between the total transfer price and the net book value of the generation-related assets and liabilities, $986 million, net of tax, was recorded as a Basis Adjustment on PSE&G’s and PSEG Power’s Consolidated Balance Sheets. The $986 million is an addition to PSE&G’s Common Stockholder’s Equity and a reduction of PSEG Power’s Member’s Equity. These amounts are eliminated on PSEG’s consolidated financial statements. |
Use Of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
New Accounting Standards | New Standards Adopted in 2020 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 based on past events, current conditions and supportable forecasts over a reasonable period. For purchased financial assets with credit deterioration, a similar model is used; however, the initial allowance is added to the purchase price rather than reported as an allowance. Credit losses on available-for-sale debt securities are measured in a manner similar to current GAAP; however, this standard requires those credit losses 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 was 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 have been eliminated. The standard also adds certain other disclosure requirements for Level 3 fair value measurements. The standard was effective for annual and interim periods beginning after December 15, 2019. PSEG adopted this standard on January 1, 2020. Certain amendments in the standard have been applied prospectively in 2020. All other amendments of the standard were applied retrospectively to all periods presented. 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 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 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 was effective for annual and interim periods beginning after December 15, 2019. PSEG adopted this standard prospectively on January 1, 2020. Adoption of this standard did not have a material impact on the financial statements of PSEG, PSE&G and PSEG. 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 are 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. The new standard was 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 in the first quarter of 2020. 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 London Interbank Offered Rate (LIBOR) or another reference rate expected to be discontinued. The standard was 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. 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 adopted this standard on December 31, 2020. The amendments in the standard have been applied retrospectively to all periods presented. See Note 14. Pension, Other Postretirement Benefits (OPEB) and Savings Plans. |
Public Service Electric and Gas Company | |
Accounting Policies | |
Revenue Recognition | 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 service(s) 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 on average within 30 days of delivery. |
PSEG Power LLC | |
Accounting Policies | |
Revenue Recognition | 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 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 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. |
Other [Member] | |
Accounting Policies | |
Revenue Recognition | Revenues from Contracts with Customers PSEG LI has a contract with LIPA which generates revenues. PSEG LI’s subsidiary, 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. |
Organization, Basis Of Presen_3
Organization, Basis Of Presentation And Summary Of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Cash, Cash Equivalents and Restricted Cash | The following provides a reconciliation of cash, cash equivalents and restricted cash reported within the Consolidated Balance Sheets that sum to the total of the same such amounts in the Consolidated Statements of Cash Flows for the years ended December 31, 2019 and 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 December 31, 2020 Cash and Cash Equivalents $ 204 $ 27 $ 312 $ 543 Restricted Cash in Other Current Assets 7 — — 7 Restricted Cash in Other Noncurrent Assets 22 — — 22 Cash, Cash Equivalents and Restricted Cash $ 233 $ 27 $ 312 $ 572 (A) Includes amounts applicable to PSEG (parent company), Energy Holdings and Services. |
Depreciation Rate Stated Percentage | PSE&G calculates depreciation under the straight-line method based on estimated average remaining lives of the several classes of depreciable property. These estimates are reviewed on a periodic basis and necessary adjustments are made as approved by the BPU or FERC. The average depreciation rate stated as a percentage of original cost of depreciable property was as follows: 2020 2019 2018 Avg Rate Avg Rate Avg Rate Electric Transmission 2.41 % 2.41 % 2.42 % Electric Distribution 2.55 % 2.54 % 2.51 % Gas Distribution 1.84 % 1.85 % 1.61 % PSEG Power calculates depreciation on generation-related assets under the straight-line method based on the assets’ estimated useful lives. The estimated useful lives are: • general plant assets—3 years to 20 years • fossil production assets—30 years to 56 years • nuclear generation assets—approximately 60 years to 80 years |
Amounts And Average Rates Used To Calculate IDC Or AFUDC | The amounts and average rates used to calculate AFUDC or IDC for the years ended December 31, 2020, 2019 and 2018 were as follows: AFUDC/IDC Capitalized 2020 2019 2018 Millions Avg Rate Millions Avg Rate Millions Avg Rate PSE&G $ 112 7.86 % $ 81 7.22 % $ 70 7.74 % PSEG Power $ 10 4.60 % $ 27 4.60 % $ 67 4.60 % |
Revenues Revenues (Tables)
Revenues Revenues (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Revenues [Abstract] | |
Disaggregation of Revenue [Table Text Block] | Disaggregation of Revenues PSE&G PSEG Power Other Eliminations Consolidated Millions Year Ended December 31, 2020 Revenues from Contracts with Customers Electric Distribution $ 3,130 $ — $ — $ — $ 3,130 Gas Distribution 1,646 — — (12) 1,634 Transmission 1,485 — — — 1,485 Electricity and Related Product Sales PJM Third-Party Sales — 1,551 — — 1,551 Sales to Affiliates — 447 — (447) — NY-ISO — 124 — — 124 ISO-NE — 126 — — 126 Gas Sales Third-Party Sales — 83 — — 83 Sales to Affiliates — 771 — (771) — Other Revenues from Contracts with Customers (A) 338 45 587 (4) 966 Total Revenues from Contracts with Customers 6,599 3,147 587 (1,234) 9,099 Revenues Unrelated to Contracts with Customers (B) 9 487 8 — 504 Total Operating Revenues $ 6,608 $ 3,634 $ 595 $ (1,234) $ 9,603 PSE&G PSEG Power Other Eliminations Consolidated Millions Year Ended December 31, 2019 Revenues from Contracts with Customers Electric Distribution $ 3,224 $ — $ — $ — $ 3,224 Gas Distribution 1,870 — — (15) 1,855 Transmission 1,181 — — — 1,181 Electricity and Related Product Sales PJM Third-Party Sales — 1,785 — — 1,785 Sales to Affiliates — 536 — (536) — NY-ISO — 143 — — 143 ISO-NE — 137 — — 137 Gas Sales Third-Party Sales — 92 — — 92 Sales to Affiliates — 927 — (927) — Other Revenues from Contracts with Customers (A) 284 46 566 (5) 891 Total Revenues from Contracts with Customers 6,559 3,666 566 (1,483) 9,308 Revenues Unrelated to Contracts with Customers (B) 66 719 (17) — 768 Total Operating Revenues $ 6,625 $ 4,385 $ 549 $ (1,483) $ 10,076 PSE&G PSEG Power Other Eliminations Consolidated Millions Year Ended December 31, 2018 Revenues from Contracts with Customers Electric Distribution $ 3,131 $ — $ — $ — $ 3,131 Gas Distribution 1,756 — — (18) 1,738 Transmission 1,236 — — — 1,236 Electricity and Related Product Sales PJM Third-Party Sales — 1,933 — — 1,933 Sales to Affiliates — 609 — (609) — NY-ISO — 209 — — 209 ISO-NE — 92 — — 92 Gas Sales Third-Party Sales — 151 — — 151 Sales to Affiliates — 861 — (861) — Other Revenues from Contracts with Customers (A) 275 44 532 (4) 847 Total Revenues from Contracts with Customers 6,398 3,899 532 (1,492) 9,337 Revenues Unrelated to Contracts with Customers (B) 73 247 39 — 359 Total Operating Revenues $ 6,471 $ 4,146 $ 571 $ (1,492) $ 9,696 (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. |
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 mid-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 Megawatt (MW)-Day MW Cleared June 2020 to May 2021 $167 7,600 June 2021 to May 2022 $180 7,000 Capacity Payments from the ISO-NE Forward Capacity Market (FCM) —The 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 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 $152 930 June 2024 to May 2025 $231 480 June 2025 to May 2026 $231 480 |
Accounts Receivable, Allowance for Credit Loss | The following provides a reconciliation of PSE&G’s allowance for credit losses for the years ended December 31, 2020 and 2019. 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 December 31, 2020. PSE&G’s electric bad debt expense is recoverable through its Societal Benefits Clause mechanism. As of December 31, 2020, PSE&G deferred incremental gas bad debt expense for future regulatory recovery due to the impact of the ongoing pandemic. See Note 7. Regulatory Assets and Liabilities for additional information. Years Ended December 31, 2020 2019 Millions Balance at Beginning of Year $ 68 (A) $ 63 Utility Customer and Other Accounts Provision 175 87 Write-offs, net of Recoveries of $5 million and $8 million (37) (90) Balance at End of Year $ 206 $ 60 |
Property, Plant And Equipment_2
Property, Plant And Equipment And Jointly-Owned Facilities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Schedule Of Property, Plant And Equipment | Information related to Property, Plant and Equipment as of December 31, 2020 and 2019 is detailed below: PSE&G PSEG Power Other PSEG Millions 2020 Transmission and Distribution: Electric Transmission $ 14,075 $ — $ — $ 14,075 Electric Distribution 9,622 — — 9,622 Gas Distribution and Transmission 9,081 — — 9,081 Construction Work in Progress 1,783 — — 1,783 Other 659 — — 659 Total Transmission and Distribution 35,220 — — 35,220 Generation: Fossil Production — 6,581 — 6,581 Nuclear Production — 3,296 — 3,296 Nuclear Fuel in Service — 748 — 748 Other Production-Solar 658 911 — 1,569 Construction Work in Progress — 248 — 248 Total Generation 658 11,784 — 12,442 Other 422 88 397 907 Total $ 36,300 $ 11,872 $ 397 $ 48,569 PSE&G PSEG Power Other PSEG Millions 2019 Transmission and Distribution: Electric Transmission $ 12,908 $ — $ — $ 12,908 Electric Distribution 9,255 — — 9,255 Gas Distribution and Transmission 8,430 — — 8,430 Construction Work in Progress 1,607 — — 1,607 Other 639 — — 639 Total Transmission and Distribution 32,839 — — 32,839 Generation: Fossil Production — 6,570 — 6,570 Nuclear Production — 3,087 — 3,087 Nuclear Fuel in Service — 761 — 761 Other Production-Solar 663 911 — 1,574 Construction Work in Progress — 277 — 277 Total Generation 663 11,606 — 12,269 Other 398 93 345 836 Total $ 33,900 $ 11,699 $ 345 $ 45,944 |
Schedule Of Jointly-Owned Facilities | As of December 31, 2020 2019 Ownership Accumulated Accumulated Interest Plant Depreciation Plant Depreciation Millions PSE&G: Transmission Facilities Various $ 161 $ 63 $ 161 $ 60 PSEG Power: Nuclear Generating: Peach Bottom 50 % $ 1,405 $ 455 $ 1,340 $ 435 Salem 57 % $ 1,321 $ 387 $ 1,256 $ 384 Nuclear Support Facilities Various $ 226 $ 97 $ 247 $ 107 Pumped Storage Facilities: Yards Creek (A) 50 % $ — $ — $ 55 $ 27 Merrill Creek Reservoir 14 % $ 1 $ — $ 1 $ — (A) In September 2020, PSEG Power completed the sale of its ownership interest in this generation facility. See Note 4. Early Plant Retirements/Asset Dispositions for additional information. |
Regulatory Assets And Liabili_2
Regulatory Assets And Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Regulatory Assets and Liabilities Disclosure [Abstract] | |
Schedule of Regulatory Assets | PSE&G had the following Regulatory Assets and Liabilities: As of December 31, 2020 2019 Millions Regulatory Assets Current New Jersey Clean Energy Program $ 143 $ 143 Societal Benefits Charge (SBC) 82 30 Electric Energy Costs—Basic Generation Service (BGS) 60 57 2018 Distribution Base Rate Case Regulatory Assets (BRC) 56 56 Formula Rate True-up 23 52 Other 5 13 Total Current Regulatory Assets 369 351 Noncurrent Pension and OPEB Costs $ 1,489 $ 1,284 Deferred Income Tax Regulatory Assets 1,014 966 Manufactured Gas Plant (MGP) Remediation Costs 320 357 Electric Transmission and Gas Cost of Removal 189 216 Asset Retirement Obligation 184 172 Green Program Recovery Charges (GPRC) 139 118 Remediation Adjustment Charge (RAC) (Other SBC) 134 158 BRC 103 159 Deferred Storm Costs 99 12 COVID-19 Deferral 51 — Unamortized Loss on Reacquired Debt and Debt Expense 36 42 Gas Costs—BGSS 26 27 Other 88 166 Total Noncurrent Regulatory Assets 3,872 3,677 Total Regulatory Assets $ 4,241 $ 4,028 |
Schedule of Regulatory Liabilities | As of December 31, 2020 2019 Millions Regulatory Liabilities Current Deferred Income Tax Regulatory Liabilities $ 223 $ 193 Gas Costs—BGSS 20 — ZEC Liability 17 10 Tax Adjustment Credit (TAC) 5 12 Weather Normalization Charge (WNC) 2 15 Other 27 4 Total Current Regulatory Liabilities 294 234 Noncurrent Deferred Income Tax Regulatory Liabilities $ 2,670 $ 2,955 Electric Distribution Cost of Removal 37 47 Total Noncurrent Regulatory Liabilities 2,707 3,002 Total Regulatory Liabilities $ 3,001 $ 3,236 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Lease, Cost | The following amounts relate to total operating lease costs, including both amounts recognized in the Consolidated Statements of Operations during the years ended December 31, 2020 and 2019 and any amounts capitalized as part of the cost of another asset, and the cash flows arising from lease transactions. PSE&G PSEG Power Other Total Millions Operating Lease Costs Year Ended December 31, 2020 Long-term Lease Costs $ 26 $ 14 $ 14 $ 54 Short-term Lease Costs 38 7 — 45 Variable Lease Costs 2 20 9 31 Total Operating Lease Costs $ 66 $ 41 $ 23 $ 130 Year Ended December 31, 2020 Cash Paid for Amounts Included in the Measurement of Operating Lease Liabilities $ 17 $ 14 $ 14 $ 45 Weighted Average Remaining Lease Term in Years 12 14 10 11 Weighted Average Discount Rate 3.5 % 4.5 % 4.2 % 4.0 % PSE&G PSEG Power Other Total Millions Operating Lease Costs Year Ended December 31, 2019 Long-term Lease Costs $ 24 $ 13 $ 15 $ 52 Short-term Lease Costs 14 10 — 24 Variable Lease Costs 2 10 10 22 Total Operating Lease Costs $ 40 $ 33 $ 25 $ 98 Year Ended December 31, 2019 Cash Paid for Amounts Included in the Measurement of Operating Lease Liabilities $ 16 $ 11 $ 15 $ 42 Weighted Average Remaining Lease Term in Years 13 14 10 12 Weighted Average Discount Rate 3.6 % 4.4 % 4.2 % 4.1 % |
Lessee, Operating Lease, Liability, Maturity | Operating lease liabilities as of December 31, 2020 had the following maturities on an undiscounted basis: PSE&G PSEG Power Other Total Millions 2021 $ 16 $ 14 $ 15 $ 45 2022 13 14 15 42 2023 11 8 15 34 2024 10 3 15 28 2025 8 3 15 26 Thereafter 69 47 75 191 Total Minimum Lease Payments $ 127 $ 89 $ 150 $ 366 The following is a reconciliation of the undiscounted cash flows to the discounted Operating Lease Liabilities recognized on the Consolidated Balance Sheets: As of December 31, 2020 PSE&G PSEG Power Other Total Millions Undiscounted Cash Flows $ 127 $ 89 $ 150 $ 366 Reconciling Amount due to Discount Rate (26) (27) (27) (80) Total Discounted Operating Lease Liabilities $ 101 $ 62 $ 123 $ 286 As of December 31, 2019 PSE&G PSEG Power Other Total Millions Undiscounted Cash Flows $ 126 $ 100 $ 168 $ 394 Reconciling Amount due to Discount Rate (27) (28) (33) (88) Total Discounted Operating Lease Liabilities $ 99 $ 72 $ 135 $ 306 |
Operating Lease, Lease Income | The following is the operating lease income for PSEG Power and Energy Holdings for the years ended December 31, 2020 and 2019: PSEG Power Energy Holdings Total Millions Operating Lease Income Year Ended December 31, 2020 Fixed Lease Income $ — $ 15 $ 15 Variable Lease Income 26 — 26 Total Operating Lease Income $ 26 $ 15 $ 41 Year Ended December 31, 2019 Fixed Lease Income $ — $ 22 $ 22 Variable Lease Income 23 — 23 Total Operating Lease Income $ 23 $ 22 $ 45 |
Lessor, Operating Lease, Payments to be Received, Maturity | Energy Holdings’ operating leases had the following minimum future fixed lease receipts as of December 31, 2020: Millions 2021 $ 14 2022 14 2023 14 2024 14 2025 14 Thereafter 227 Total Minimum Future Lease Receipts $ 297 |
Long-Term Investments (Tables)
Long-Term Investments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Long-term Investments [Abstract] | |
Schedule of Long Term Investments | Long-Term Investments as of December 31, 2020 and 2019 included the following: As of December 31, 2020 2019 Millions PSE&G Life Insurance and Supplemental Benefits $ 100 $ 111 Solar Loans 122 137 PSEG Power Equity Method Investments (A) 64 66 Energy Holdings Lease Investments 250 497 Equity Method Investments — 1 Total Long-Term Investments $ 536 $ 812 |
Schedule Of Net Investment In Leveraged Leases | The following table shows Energy Holdings’ gross and net lease investment as of December 31, 2020 and 2019. As of December 31, 2020 2019 Millions Lease Receivables (net of Non-Recourse Debt) $ 299 $ 498 Estimated Residual Value of Leased Assets 55 202 Total Investment in Rental Receivables 354 700 Unearned and Deferred Income (104) (203) Gross Investments in Leases 250 497 Deferred Tax Liabilities (64) (328) Net Investments in Leases $ 186 $ 169 |
Schedule Of Pre-Tax Income And Income Tax Effects Related To Investments In Leveraged Leases | The pre-tax income (loss) and income tax effects related to investments in leases, excluding gains and losses on sales and the impacts of the Tax Act, were as follows: Years Ended December 31, 2020 2019 2018 Millions Pre-Tax Income (Loss) from Leases $ 18 $ (39) $ 17 Income Tax Expense (Benefit) on Income (Loss) from Leases $ 2 $ (22) $ 6 |
Financing Receivables (Tables)
Financing Receivables (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Financing Receivable, Recorded Investment [Line Items] | |
Schedule Of Credit Risk Profile Based On Payment Activity | The following table reflects the outstanding loans by class of customer, none of which would be considered “non-performing.” As of December 31, Outstanding Loans by Class of Customer 2020 2019 Millions Commercial/Industrial $ 145 $ 156 Residential 6 8 Total 151 164 Current Portion (included in Accounts Receivable) (29) (28) Noncurrent Portion (included in Long-Term Investments) $ 122 $ 136 The solar loans originated under three Solar Loan Programs are comprised as follows: Programs Balance as of December 31, 2020 Funding Provided Residential Loan Term Non-Residential Loan Term Millions Solar Loan I $ 20 prior to 2013 10 years 15 years Solar Loan II 69 prior to 2015 10 years 15 years Solar Loan III 62 largely funded as of December 31, 2020 10 years 10 years Total $ 151 The average life of loans paid in full is eight years, which is lower than the loan terms of 10 to 15 years due to the generation of SRECs being greater than expected and/or cash payments made to the loan. Payments on all outstanding loans were current as of December 31, 2020 and have an average remaining life of approximately four years. |
Energy Holdings [Member] | |
Financing Receivable, Recorded Investment [Line Items] | |
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 Counterparties’ Credit Rating Standard & Poor’s (S&P) as of December 31, 2020 As of December 31, 2020 Millions AA $ 9 A- 54 BBB+ to BBB 196 BB+ 40 Total $ 299 |
Schedule Of Assets Under Lease Receivables |
Trust Investments (Tables)
Trust Investments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Nuclear Decommissioning Trust (NDT) Fund [Member] | |
Schedule of Trust Investments [Line Items] | |
Schedule of Available-for-sale Securities Reconciliation | The following tables show the fair values and gross unrealized gains and losses for the securities held in the NDT Fund. As of December 31, 2020 Cost Gross Gross Fair Millions Equity Securities Domestic $ 519 $ 305 $ (3) $ 821 International 388 152 (9) 531 Total Equity Securities 907 457 (12) 1,352 Available-for-Sale Debt Securities Government 555 27 (1) 581 Corporate 528 39 (1) 566 Total Available-for-Sale Debt Securities 1,083 66 (2) 1,147 Total NDT Fund Investments (A) $ 1,990 $ 523 $ (14) $ 2,499 (A) The NDT Fund Investments table excludes foreign currency of $2 million as of December 31, 2020, which is part of the NDT Fund. As of December 31, 2019 Cost Gross Gross Fair 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 | 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 Consolidated Balance Sheets as shown in the following table. As of December 31, 2020 2019 Millions Accounts Receivable $ 11 $ 11 Accounts Payable $ 12 $ 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 December 31, 2020 As of December 31, 2019 Less Than 12 Greater Than 12 Less Than 12 Greater Than 12 Fair Gross Fair Gross Fair Gross Fair Gross Millions Equity Securities (A) Domestic $ 23 $ (2) $ 6 $ (1) $ 21 $ (1) $ 6 $ (3) International 26 (2) 27 (7) 28 (2) 34 (9) Total Equity Securities 49 (4) 33 (8) 49 (3) 40 (12) Available-for-Sale Debt Securities Government (B) 72 (1) — — 99 (2) 30 — Corporate (C) 31 (1) 7 — 49 — 12 (1) Total Available-for-Sale Debt Securities 103 (2) 7 — 148 (2) 42 (1) NDT Trust Investments $ 152 $ (6) $ 40 $ (8) $ 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. |
Amount Of Available-For-Sale Debt Securities By Maturity Periods | The NDT Fund debt securities held as of December 31, 2020 had the following maturities: Time Frame Fair Value Millions Less than one year $ 20 1 - 5 years 301 6 - 10 years 202 11 - 15 years 81 16 - 20 years 79 Over 20 years 464 Total NDT Available-for-Sale Debt Securities $ 1,147 |
Schedule of Realized Gain (Loss) | The proceeds from the sales of and the net gains (losses) on securities in the NDT Fund were: Years Ended December 31, 2020 2019 2018 Millions Proceeds from Sales (A) $ 2,031 $ 1,614 $ 1,398 Net Realized Gains (Losses): Gross Realized Gains $ 214 $ 107 $ 121 Gross Realized Losses (94) (53) (51) Net Realized Gains (Losses) on NDT Fund (B) 120 54 70 Unrealized Gains (Losses) on Equity Securities in NDT Fund 120 196 (209) Impairment of Available-for-Sale Debt Securities (C) (3) — — Net Gains (Losses) on NDT Fund Investments $ 237 $ 250 $ (139) (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. |
Rabbi Trust [Member] | |
Schedule of Trust Investments [Line Items] | |
Schedule of Available-for-sale Securities Reconciliation | As of December 31, 2020 Cost Gross Gross Fair Millions Equity Securities Domestic $ 21 $ 10 $ — $ 31 International — — — — Total Equity Securities 21 10 — 31 Available-for-Sale Debt Securities Government 94 6 — 100 Corporate 123 12 — 135 Total Available-for-Sale Debt Securities 217 18 — 235 Total Rabbi Trust Investments $ 238 $ 28 $ — $ 266 As of December 31, 2019 Cost Gross Gross Fair Millions Equity Securities Domestic $ 21 $ 7 $ — $ 28 International — — — — Total 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 | 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 Consolidated Balance Sheets as shown in the following table. As of December 31, 2020 2019 Millions Accounts Receivable $ 1 $ 2 Accounts Payable $ 1 $ — |
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 and greater than 12 months: As of December 31, 2020 As of December 31, 2019 Less Than 12 Greater Than 12 Less Than 12 Greater Than 12 Fair Gross Fair Gross Fair Gross Fair Gross Millions Available-for-Sale Debt Securities Government (A) $ 19 $ — $ — $ — $ 26 $ — $ 3 $ — Corporate (B) 2 — 1 — 11 — 2 — Total Available-for-Sale Debt Securities 21 — 1 — 37 — 5 — Rabbi Trust Investments $ 21 $ — $ 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. |
Amount Of Available-For-Sale Debt Securities By Maturity Periods | The Rabbi Trust debt securities held as of December 31, 2020 had the following maturities: Time Frame Fair Value Millions Less than one year $ 5 1 - 5 years 39 6 - 10 years 30 11 - 15 years 12 16 - 20 years 30 Over 20 years 119 Total Rabbi Trust Available-for-Sale Debt Securities $ 235 |
Schedule of Realized Gain (Loss) | The proceeds from the sales of and the net gains (losses) on securities in the Rabbi Trust Fund were: Years Ended December 31, 2020 2019 2018 Millions Proceeds from Rabbi Trust Sales (A) $ 203 $ 173 $ 103 Net Realized Gains (Losses): Gross Realized Gains $ 19 $ 7 $ 2 Gross Realized Losses (6) (3) (4) Net Realized Gains (Losses) on Rabbi Trust (B) 13 4 (2) Unrealized Gains (Losses) on Equity Securities in Rabbi Trust 3 6 (2) Net Gains (Losses) on Rabbi Trust Investments $ 16 $ 10 $ (4) (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. |
Rabbi Trust Fair Value by Company | The fair value of the Rabbi Trust related to PSEG, PSE&G and PSEG Power are detailed as follows: As of December 31, As of December 31, 2020 2019 Millions PSE&G $ 51 $ 48 PSEG Power 66 62 Other 149 136 Total Rabbi Trust Investments $ 266 $ 246 |
Goodwill And Other Intangibles
Goodwill And Other Intangibles (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
PSEG Power LLC | |
Goodwill [Line Items] | |
Schedule of Intangibles | The changes to PSEG Power’s intangible assets during 2019 and 2020 are as follows: Emissions Allowances RECs Total Other Intangibles Millions Balance as of January 1, 2019 $ 84 $ 59 $ 143 Retirements (6) (83) (89) Purchases 26 72 98 Sales and Transfers, net — (3) (3) Balance as of December 31, 2019 $ 104 $ 45 $ 149 Retirements (9) (93) (102) Purchases 17 94 111 Balance as of December 31, 2020 $ 112 $ 46 $ 158 |
Asset Retirement Obligations _2
Asset Retirement Obligations (AROs) (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Asset Retirement Obligation [Abstract] | |
Impact Of The Revisions On Asset Retirement Obligation | The changes to the ARO liabilities for PSEG, PSE&G and PSEG Power during 2019 and 2020 are presented in the following table: PSEG PSE&G PSEG Power Other Millions ARO Liability as of January 1, 2019 $ 1,063 $ 302 $ 758 $ 3 Liabilities Settled (19) (18) (1) — Liabilities Incurred 3 1 2 — Accretion Expense 40 — 40 — Accretion Expense Deferred and Recovered in Rate Base (A) 16 16 — — Revision to Present Values of Estimated Cash Flows (16) 2 (18) — ARO Liability as of December 31, 2019 $ 1,087 $ 303 $ 781 $ 3 Liabilities Settled (9) (7) (2) — Accretion Expense 42 — 42 — Accretion Expense Deferred and Recovered in Rate Base (A) 17 17 — — Revision to Present Values of Estimated Cash Flows 75 1 74 — ARO Liability as of December 31, 2020 $ 1,212 $ 314 $ 895 $ 3 (A) Not reflected as expense in Consolidated Statements of Operations |
Pension, OPEB and Savings Pla_2
Pension, OPEB and Savings Plans (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
Schedule of Defined Benefit Plans Disclosures | The following table provides a roll-forward of the changes in the benefit obligation and the fair value of plan assets during each of the two years in the periods ended December 31, 2020 and 2019. It also provides the funded status of the plans and the amounts recognized and amounts not recognized on the Consolidated Balance Sheets at the end of both years. Pension Benefits Other Benefits 2020 2019 2020 2019 Millions Change in Benefit Obligation Benefit Obligation at Beginning of Year (A) $ 6,892 $ 5,921 $ 1,285 $ 1,203 Service Cost 141 123 9 10 Interest Cost 192 218 34 45 Actuarial (Gain) Loss (B) 615 955 32 109 Gross Benefits Paid (333) (325) (50) (82) Plan Amendments — — (4) — Benefit Obligation at End of Year (A) $ 7,507 $ 6,892 $ 1,306 $ 1,285 Change in Plan Assets Fair Value of Assets at Beginning of Year $ 5,929 $ 5,120 $ 540 $ 488 Actual Return on Plan Assets 761 1,122 70 107 Employer Contributions 11 12 4 27 Gross Benefits Paid (333) (325) (50) (82) Fair Value of Assets at End of Year $ 6,368 $ 5,929 $ 564 $ 540 Funded Status Funded Status (Plan Assets less Benefit Obligation) $ (1,139) $ (963) $ (742) $ (745) Additional Amounts Recognized in the Consolidated Balance Sheets Current Accrued Benefit Cost $ (11) $ (11) $ (12) $ (11) Noncurrent Accrued Benefit Cost (1,128) (952) (730) (734) Amounts Recognized $ (1,139) $ (963) $ (742) $ (745) Additional Amounts Recognized in Accumulated Other Comprehensive Income (Loss), Regulated Assets and Deferred Assets (C) Prior Service Credit $ — $ (10) $ (310) $ (433) Net Actuarial Loss 2,354 2,150 364 409 Total $ 2,354 $ 2,140 $ 54 $ (24) (A) Represents projected benefit obligation for pension benefits and the accumulated postretirement benefit obligation for other benefits. The vested benefit obligation is the actuarial present value of the vested benefits to which the employee is currently entitled but based on the employee’s expected date of separation or retirement. (B) For pension benefits, the net actuarial loss was primarily due to a decrease in the discount rate. For OPEB, the net actuarial loss was primarily due to a decrease in the discount rate, partially offset by actuarial gains driven by lower than expected claims experience. (C) Includes $760 million ($545 million, after-tax) and $695 million ($499 million, after-tax) in Accumulated Other Comprehensive Loss related to Pension and OPEB as of December 31, 2020 and 2019, respectively. Also includes Regulatory Assets of $1,489 million and Deferred Assets of $159 million as of December 31, 2020 and Regulatory Assets of $1,284 million and Deferred Assets of $137 million as of December 31, 2019. Pension Benefits Other Benefits 2020 2019 2020 2019 Millions Change in Benefit Obligation Benefit Obligation at Beginning of Year (A) $ 453 $ 321 $ 626 $ 501 Service Cost 33 26 20 16 Interest Cost 14 14 20 22 Actuarial (Gain) Loss (B) 74 96 42 96 Gross Benefits Paid (5) (4) (9) (6) Plan Amendments — — — (3) Benefit Obligation at End of Year (A) $ 569 $ 453 $ 699 $ 626 Change in Plan Assets Fair Value of Assets at Beginning of Year $ 282 $ 212 $ — $ — Actual Return on Plan Assets 36 46 — — Employer Contributions 30 28 9 6 Gross Benefits Paid (5) (4) (9) (6) Fair Value of Assets at End of Year $ 343 $ 282 $ — $ — Funded Status Funded Status (Plan Assets less Benefit Obligation) $ (226) $ (171) $ (699) $ (626) Additional Amounts Recognized in the Consolidated Balance Sheets Accrued Pension Costs of Servco $ (226) $ (171) N/A N/A OPEB Costs of Servco N/A N/A (699) (626) Amounts Recognized (C) $ (226) $ (171) $ (699) $ (626) (A) Represents projected benefit obligation for pension benefits and the accumulated postretirement benefit obligation for other benefits. The vested benefit obligation is the actuarial present value of the vested benefits to which the employee is currently entitled but based on the employee’s expected date of separation or retirement. (B) For pension benefits, the net actuarial loss was primarily due to a decrease in the discount rate. For OPEB, the net actuarial loss in 2020 was primarily due to a decrease in the discount rate, partially offset by actuarial gains driven by lower than expected participation experience. The OPEB net actuarial loss in 2019 was primarily due to a decrease in the discount rate. (C) Amounts equal to the accrued pension and OPEB costs of Servco are offset in Long-Term Receivable of VIE on PSEG’s Consolidated Balance Sheets. |
Components Of Net Periodic Benefit Cost | The following table provides the components of net periodic benefit cost relating to all qualified and nonqualified pension and OPEB plans on an aggregate basis for PSEG, excluding Servco for the years ended December 31, 2020, 2019 and 2018. 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 Years Ended December 31, Other Benefits Years Ended December 31, 2020 2019 2018 2020 2019 2018 Millions Components of Net Periodic Benefit (Credits) Costs Service Cost (included in O&M Expense) $ 141 $ 123 $ 130 $ 9 $ 10 $ 18 Non-Service Components of Pension and OPEB (Credits) Costs Interest Cost 192 218 208 34 45 66 Expected Return on Plan Assets (443) (408) (441) (39) (36) (41) Amortization of Net Prior Service Credit (10) (18) (18) (128) (128) (1) Actuarial Loss 92 96 85 47 50 64 Non-Service Components of Pension and OPEB (Credits) Costs (169) (112) (166) (86) (69) 88 Total Benefit (Credits) Costs $ (28) $ 11 $ (36) $ (77) $ (59) $ 106 |
Schedule Of Pension And OPEB Costs | Pension costs and OPEB costs for PSEG, PSE&G and PSEG Power are detailed as follows: Pension Benefits Other Benefits 2020 2019 2018 2020 2019 2018 Millions PSE&G $ (27) $ — $ (31) $ (76) $ (62) $ 68 PSEG Power (5) 4 (9) — 3 32 Other 4 7 4 (1) — 6 Total Benefit (Credits) Costs $ (28) $ 11 $ (36) $ (77) $ (59) $ 106 |
Schedule of Amounts Recognized in Other Comprehensive Income (Loss) | The following table provides the pre-tax changes recognized in Accumulated Other Comprehensive Income (Loss), Regulatory Assets and Deferred Assets: Pension OPEB 2020 2019 2020 2019 Millions Net Actuarial (Gain) Loss in Current Period $ 296 $ 241 $ 2 $ 39 Amortization of Net Actuarial Gain (Loss) (92) (96) (47) (50) Prior Service Cost (Credit) in Current Period — — (5) — Amortization of Prior Service Credit 10 18 128 128 Total $ 214 $ 163 $ 78 $ 117 |
Schedule of Amounts in Accumulated Other Comprehensive Income (Loss) to be Recognized over Next Fiscal Year | |
Schedule of Assumptions Used | The following assumptions were used to determine the benefit obligations and net periodic benefit costs: Pension Benefits Other Benefits 2020 2019 2018 2020 2019 2018 Weighted-Average Assumptions Used to Determine Benefit Obligations as of December 31 Discount Rate 2.61 % 3.30 % 4.41 % 2.46 % 3.20 % 4.31 % Rate of Compensation Increase 4.40 % 3.90 % 3.90 % 4.40 % 3.90 % 3.90 % Cash Balance Interest Crediting Rate 6.00 % 6.00 % 6.00 % N/A N/A N/A Weighted-Average Assumptions Used to Determine Net Periodic Benefit Cost for Years Ended December 31 Discount Rate 3.30 % 4.41 % 3.73 % 3.20 % 4.31 % 3.76 % Service Cost Interest Rate 3.49 % 4.58 % 3.88 % 3.50 % 4.48 % 3.90 % Interest Cost Interest Rate 2.87 % 4.03 % 3.35 % 2.87 % 3.91 % 3.39 % Expected Return on Plan Assets 7.70 % 7.80 % 7.80 % 7.70 % 7.79 % 7.80 % Rate of Compensation Increase 3.90 % 3.90 % 3.90 % 3.90 % 3.90 % 3.90 % Cash Balance Interest Crediting Rate 6.00 % 6.00 % 6.00 % N/A N/A N/A Assumed Health Care Cost Trend Rates as of December 31 Health Care Costs Immediate Rate 6.37 % 6.68 % 7.28 % Ultimate Rate 4.75 % 4.75 % 4.75 % Year Ultimate Rate Reached 2029 2029 2026 Pension Benefits Other Benefits 2020 2019 2018 2020 2019 2018 Weighted-Average Assumptions Used to Determine Benefit Obligations as of December 31 Discount Rate 2.98 % 3.52 % 4.60 % 3.08 % 3.60 % 4.67 % Rate of Compensation Increase 3.95 % 3.25 % 3.25 % 3.95 % 3.25 % 3.25 % Cash Balance Interest Crediting Rate 3.75 % 3.75 % 3.75 % N/A N/A N/A Assumed Health Care Cost Trend Rates as of December 31 Health Care Costs Immediate Rate 6.70 % 6.94 % 8.03 % Ultimate Rate 4.75 % 4.75 % 4.75 % Year Ultimate Rate Reached 2029 2029 2026 |
Schedule of Allocation of Plan Assets | The following tables present information about the investments measured at fair value on a recurring basis as of December 31, 2020 and 2019, including the fair value measurements and the levels of inputs used in determining those fair values. Recurring Fair Value Measurements as of December 31, 2020 Quoted Market Prices Significant Other Significant Description Total (Level 1) (Level 2) (Level 3) Millions Cash Equivalents (A) $ 85 $ 85 $ — $ — Equity Securities Common Stock (B) 1,763 1,763 — — Commingled (C) 1,964 1,025 939 — Preferred Stock (B) 10 10 — — Other (D) 1 1 — — Debt Securities (E) U.S. Treasury 419 — 419 — Government—Other 258 — 258 — Corporate 823 — 823 — Commingled 4 4 — — Subtotal Fair Value $ 5,327 $ 2,888 $ 2,439 $ — Measured at net asset value practical expedient Commingled—Equities (F) 1,283 Real Estate Investment (G) 306 Private Equity (H) 5 Total Fair Value (I) $ 6,921 Recurring Fair Value Measurements as of December 31, 2019 Quoted Market Prices Significant Other Significant Description Total (Level 1) (Level 2) (Level 3) Millions Cash Equivalents (A) $ 104 $ 103 $ 1 $ — Equity Securities Common Stock (B) 1,487 1,487 — — Commingled (C) 1,707 1,042 665 — Preferred Stock (B) 19 19 — — Other (D) 3 3 — — Debt Securities (E) U.S. Treasury 544 — 544 — Government—Other 284 — 284 — Corporate 837 — 837 — Commingled 3 3 — — Other (Future Contracts) (3) (3) — — Subtotal Fair Value $ 4,985 $ 2,654 $ 2,331 $ — Measured at net asset value practical expedient Commingled—Equities (F) 1,154 Real Estate Investment (G) 302 Private Equity (H) 8 Total Fair Value (I) $ 6,449 (A) The Collective Investment Fund publishes a daily net asset value (NAV) which participants may use for daily redemptions without restrictions (Level 1). Certain temporary investments are valued using inputs such as time-to-maturity, coupon rate, quality rating and current yield (Level 2). (B) Common stocks and preferred stocks are measured using observable data in active markets and considered Level 1. (C) Commingled Funds that allow daily redemption at their daily published NAV without restrictions are classified as Level 1. Commingled Funds that publish daily NAV but with certain near-term redemption restrictions which prevent redemption at the published daily NAV are classified as Level 2. (D) Investment in a publicly traded limited partnership. (E) Debt securities include mainly investment grade corporate and municipal bonds, U.S. Treasury obligations and Federal Agency asset-backed securities with a wide range of maturities. These investments are valued using an evaluated pricing approach that varies by asset class and reflects observable market information such as the most recent exchange price or quoted bid for similar securities. Market-based standard inputs typically include benchmark yields, reported trades, broker/dealer quotes and issuer spreads or the most recent quotes for similar securities which are a Level 2 measure. (F) Certain commingled equity funds are not included in the fair value hierarchy as they are measured at fair value using the NAV per share (or its equivalent) practical expedient. These funds do not meet the definition of readily determinable fair value due to the frequency of publishing NAV (monthly). The objectives of these funds are mainly tracking the S&P Index or achieving long-term growth through investment in foreign equity securities and the Morgan Stanley Capital International Index. (G) The unlisted real estate fund invests in office, apartment, industrial and retail space. The fund is valued using the NAV per unit of funds. The investment value of the real estate properties is determined on a quarterly basis by independent market appraisers engaged by the board of directors of the fund. The ability to redeem funds is subject to the availability of cash arising from net investment income, allocations and the sale of investments in the normal course of business. The fund’s NAV is published quarterly. In addition, redemptions require one quarter advance notice prior to redemption and are fulfilled quarterly. The fund, therefore, does not meet the definition of readily determinable fair value. The purpose of the fund is to acquire, own, hold for investment and ultimately dispose of investments in real estate and real estate-related assets with the intention of achieving current income, capital appreciation or both. (H) Private equity investments primarily include various limited partnerships that invest in either operating companies through acquisitions or developing a portfolio of non-U.S. distressed investments to maximize total return on capital. These investments are valued at NAV (or its equivalent) on a quarterly basis and have significant redemption restrictions preventing redemption until fund liquidation and limited ability to sell these investments. Fund liquidation is not expected to occur for several more years. These investments are not included in the fair value hierarchy in accordance with the guidance on NAV practical expedient. The following tables present information about Servco’s investments measured at fair value on a recurring basis as of December 31, 2020 and 2019, including the fair value measurements and the levels of inputs used in determining those fair values. Recurring Fair Value Measurements as of December 31, 2020 Quoted Market Prices Significant Other Significant Description Total (Level 1) (Level 2) (Level 3) Millions Cash Equivalents $ 1 $ 1 $ — $ — Commingled Equities (A) 259 — 259 — Commingled Bonds (A) 83 — 83 — Total $ 343 $ 1 $ 342 $ — Recurring Fair Value Measurements as of December 31, 2019 Quoted Market Prices Significant Other Significant Description Total (Level 1) (Level 2) (Level 3) Millions Commingled Equities (A) $ 202 $ — $ 202 $ — Commingled Bonds (A) 80 — 80 — Total $ 282 $ — $ 282 $ — |
Schedule of Effect of Significant Unobservable Inputs, Changes in Plan Assets | The following tables present information about the investments measured at fair value on a recurring basis as of December 31, 2020 and 2019, including the fair value measurements and the levels of inputs used in determining those fair values. Recurring Fair Value Measurements as of December 31, 2020 Quoted Market Prices Significant Other Significant Description Total (Level 1) (Level 2) (Level 3) Millions Cash Equivalents (A) $ 85 $ 85 $ — $ — Equity Securities Common Stock (B) 1,763 1,763 — — Commingled (C) 1,964 1,025 939 — Preferred Stock (B) 10 10 — — Other (D) 1 1 — — Debt Securities (E) U.S. Treasury 419 — 419 — Government—Other 258 — 258 — Corporate 823 — 823 — Commingled 4 4 — — Subtotal Fair Value $ 5,327 $ 2,888 $ 2,439 $ — Measured at net asset value practical expedient Commingled—Equities (F) 1,283 Real Estate Investment (G) 306 Private Equity (H) 5 Total Fair Value (I) $ 6,921 Recurring Fair Value Measurements as of December 31, 2019 Quoted Market Prices Significant Other Significant Description Total (Level 1) (Level 2) (Level 3) Millions Cash Equivalents (A) $ 104 $ 103 $ 1 $ — Equity Securities Common Stock (B) 1,487 1,487 — — Commingled (C) 1,707 1,042 665 — Preferred Stock (B) 19 19 — — Other (D) 3 3 — — Debt Securities (E) U.S. Treasury 544 — 544 — Government—Other 284 — 284 — Corporate 837 — 837 — Commingled 3 3 — — Other (Future Contracts) (3) (3) — — Subtotal Fair Value $ 4,985 $ 2,654 $ 2,331 $ — Measured at net asset value practical expedient Commingled—Equities (F) 1,154 Real Estate Investment (G) 302 Private Equity (H) 8 Total Fair Value (I) $ 6,449 (A) The Collective Investment Fund publishes a daily net asset value (NAV) which participants may use for daily redemptions without restrictions (Level 1). Certain temporary investments are valued using inputs such as time-to-maturity, coupon rate, quality rating and current yield (Level 2). (B) Common stocks and preferred stocks are measured using observable data in active markets and considered Level 1. (C) Commingled Funds that allow daily redemption at their daily published NAV without restrictions are classified as Level 1. Commingled Funds that publish daily NAV but with certain near-term redemption restrictions which prevent redemption at the published daily NAV are classified as Level 2. (D) Investment in a publicly traded limited partnership. (E) Debt securities include mainly investment grade corporate and municipal bonds, U.S. Treasury obligations and Federal Agency asset-backed securities with a wide range of maturities. These investments are valued using an evaluated pricing approach that varies by asset class and reflects observable market information such as the most recent exchange price or quoted bid for similar securities. Market-based standard inputs typically include benchmark yields, reported trades, broker/dealer quotes and issuer spreads or the most recent quotes for similar securities which are a Level 2 measure. (F) Certain commingled equity funds are not included in the fair value hierarchy as they are measured at fair value using the NAV per share (or its equivalent) practical expedient. These funds do not meet the definition of readily determinable fair value due to the frequency of publishing NAV (monthly). The objectives of these funds are mainly tracking the S&P Index or achieving long-term growth through investment in foreign equity securities and the Morgan Stanley Capital International Index. (G) The unlisted real estate fund invests in office, apartment, industrial and retail space. The fund is valued using the NAV per unit of funds. The investment value of the real estate properties is determined on a quarterly basis by independent market appraisers engaged by the board of directors of the fund. The ability to redeem funds is subject to the availability of cash arising from net investment income, allocations and the sale of investments in the normal course of business. The fund’s NAV is published quarterly. In addition, redemptions require one quarter advance notice prior to redemption and are fulfilled quarterly. The fund, therefore, does not meet the definition of readily determinable fair value. The purpose of the fund is to acquire, own, hold for investment and ultimately dispose of investments in real estate and real estate-related assets with the intention of achieving current income, capital appreciation or both. (H) Private equity investments primarily include various limited partnerships that invest in either operating companies through acquisitions or developing a portfolio of non-U.S. distressed investments to maximize total return on capital. These investments are valued at NAV (or its equivalent) on a quarterly basis and have significant redemption restrictions preventing redemption until fund liquidation and limited ability to sell these investments. Fund liquidation is not expected to occur for several more years. These investments are not included in the fair value hierarchy in accordance with the guidance on NAV practical expedient. |
Schedule Of Percentage Of Fair Value Of Total Plan Assets | The following table provides the percentage of fair value of total plan assets for each major category of plan assets held for the qualified pension and OPEB plans as of the measurement date, December 31: As of December 31, Investments 2020 2019 Equity Securities 72 % 68 % Debt Securities 22 26 Other Investments 6 6 Total Percentage 100 % 100 % The following table provides the percentage of fair value of total plan assets for each major category of plan assets held for the qualified pension and OPEB plans of Servco as of the measurement date, December 31: As of December 31, Investments 2020 2019 Equity Securities 76 % 72 % Debt Securities 24 28 Total Percentage 100 % 100 % |
Schedule of Expected Benefit Payments | The following pension benefit and postretirement benefit payments are expected to be paid to plan participants. Year Pension Other Benefits Millions 2021 $ 389 $ 83 2022 368 84 2023 381 84 2024 392 84 2025 401 83 2026-2030 2,119 388 Total $ 4,050 $ 806 The following pension benefit and postretirement benefit payments are expected to be paid to Servco’s plan participants: Year Pension Other Benefits Millions 2021 $ 8 $ 9 2022 10 11 2023 12 13 2024 15 15 2025 17 17 2026-2030 123 111 Total $ 185 $ 176 |
Schedule Of Amount Paid For Employer Matching Contributions | The amounts paid for employer matching contributions to the plans for PSEG, PSE&G and PSEG Power are detailed as follows: Thrift Plan and Savings Plan Years Ended December 31, 2020 2019 2018 Millions PSE&G $ 27 $ 25 $ 26 PSEG Power 10 10 10 Other 6 5 5 Total Employer Matching Contributions $ 43 $ 40 $ 41 |
Commitments and Contingent Li_2
Commitments and Contingent Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
PSEG Power LLC | |
Other Commitments [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 December 31, 2020 and 2019. As of December 31, 2020 As of December 31, 2019 Millions Face Value of Outstanding Guarantees $ 1,792 $ 1,854 Exposure under Current Guarantees $ 128 $ 171 Letters of Credit Margin Posted $ 128 $ 121 Letters of Credit Margin Received $ 45 $ 29 Cash Deposited and Received Counterparty Cash Collateral Deposited $ — $ — Counterparty Cash Collateral Received $ (5) $ (4) Net Broker Balance Deposited (Received) $ 59 $ 48 Additional Amounts Posted Other Letters of Credit $ 42 $ 82 |
Total Minimum Purchase Commitments | As of December 31, 2020, the total minimum purchase requirements included in these commitments were as follows: Fuel Type PSEG Power’s Share of Commitments through 2025 Millions Nuclear Fuel Uranium $ 193 Enrichment $ 346 Fabrication $ 174 Natural Gas $ 1,256 |
Public Service Electric and Gas Company | |
Other Commitments [Line Items] | |
Contract For Anticipated BGS-Fixed Price Eligible Load | Auction Year 2018 2019 2020 2021 36-Month Terms Ending May 2021 May 2022 May 2023 May 2024 (A) Load (MW) 2,900 2,800 2,800 2,900 $ per MWh $91.77 $98.04 $102.16 $64.80 (A) Prices set in the 2021 BGS auction will become effective on June 1, 2021 when the 2018 BGS auction agreements expire. |
Debt and Credit Facilities (Tab
Debt and Credit Facilities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt As of December 31, Maturity 2020 2019 Millions PSEG Term Loan: Variable Rate 2020 $ — $ 700 Total Term Loan — 700 Senior Notes: 2.00% 2021 300 300 2.65% 2022 700 700 2.88% 2024 750 750 0.80% 2025 550 — 1.60% 2030 550 — 8.63% (A) 2031 96 — Total Senior Notes 2,946 1,750 Principal Amount Outstanding 2,946 2,450 Amounts Due Within One Year (300) (700) Net Unamortized Discount and Debt Issuance Costs (17) (9) Total Long-Term Debt of PSEG $ 2,629 $ 1,741 As of December 31, Maturity 2020 2019 Millions PSE&G First and Refunding Mortgage Bonds (B): 9.25% 2021 $ 134 $ 134 8.00% 2037 7 7 5.00% 2037 8 8 Total First and Refunding Mortgage Bonds 149 149 Medium-Term Notes (B): 3.50% 2020 — 250 7.04% 2020 — 9 1.90% 2021 300 300 2.38% 2023 500 500 3.25% 2023 325 325 3.75% 2024 250 250 3.15% 2024 250 250 3.05% 2024 250 250 3.00% 2025 350 350 2.25% 2026 425 425 3.00% 2027 425 425 3.70% 2028 375 375 3.65% 2028 325 325 3.20% 2029 375 375 2.45% 2030 300 — 5.25% 2035 250 250 5.70% 2036 250 250 5.80% 2037 350 350 5.38% 2039 250 250 5.50% 2040 300 300 3.95% 2042 450 450 3.65% 2042 350 350 3.80% 2043 400 400 4.00% 2044 250 250 4.05% 2045 250 250 4.15% 2045 250 250 3.80% 2046 550 550 3.60% 2047 350 350 4.05% 2048 325 325 3.85% 2049 375 375 3.20% 2049 400 400 3.15% 2050 300 — 2.70% 2050 375 — 2.05% 2050 375 — Total MTNs 10,850 9,759 Principal Amount Outstanding 10,999 9,908 Amounts Due Within One Year (434) (259) Net Unamortized Discount and Selling Expense (90) (81) Total Long-Term Debt of PSE&G $ 10,475 $ 9,568 As of December 31, Maturity 2020 2019 Millions PSEG Power Senior Notes: 5.13% 2020 $ — $ 406 3.00% 2021 700 700 4.15% 2021 250 250 3.85% 2023 700 700 4.30% 2023 250 250 8.63% (A) 2031 404 500 Total Senior Notes 2,304 2,806 Pollution Control Notes: Floating Rate (C) 2022 44 44 Total Pollution Control Notes 44 44 Principal Amount Outstanding 2,348 2,850 Amounts Due Within One Year (950) (406) Net Unamortized Discount and Debt Issuance Costs (6) (10) Total Long-Term Debt of PSEG Power $ 1,392 $ 2,434 (A) In December 2020, PSEG issued $96 million principal amount of 8.63% Senior Notes due 2031 to holders of a like principal amount of 8.63% Senior Notes due 2031 originally issued by PSEG Power who validly tendered their notes pursuant to an offer to exchange. Upon consummation of the offer to exchange, the PSEG Power notes accepted in the exchange were cancelled. The transaction resulted in a non-cash financing activity for both PSEG and PSEG Power. (B) Secured by essentially all property of PSE&G pursuant to its First and Refunding Mortgage. |
Aggregate Principal Amounts Of Maturities | The aggregate principal amounts of maturities for each of the five years following December 31, 2020 are as follows: Year PSEG PSE&G PSEG Power Total 2021 $ 300 $ 434 $ 950 $ 1,684 2022 700 — 44 744 2023 — 825 950 1,775 2024 750 750 — 1,500 2025 550 350 — 900 Thereafter 646 8,640 404 9,690 Total $ 2,946 $ 10,999 $ 2,348 $ 16,293 |
Short-Term Liquidity | The total credit facilities and available liquidity as of December 31, 2020 were as follows: As of December 31, 2020 Company/Facility Total Usage (D) Available Expiration Primary Purpose Millions PSEG 5-year Credit Facilities (A) $ 1,500 $ 665 $ 835 Mar 2024 Commercial Paper Support/Funding/Letters of Credit Total PSEG $ 1,500 $ 665 $ 835 PSE&G 5-year Credit Facility (B) $ 600 $ 117 $ 483 Mar 2024 Commercial Paper Support/Funding/Letters of Credit Total PSE&G $ 600 $ 117 $ 483 PSEG Power 3-year Letter of Credit Facility $ 100 $ 48 $ 52 Sept 2021 Letters of Credit 3-year Letter of Credit Facility 100 81 19 Sept 2022 Letters of Credit 5-year Credit Facilities (C) 1,900 39 1,861 Mar 2024 Funding/Letters of Credit Total PSEG Power $ 2,100 $ 168 $ 1,932 Total $ 4,200 $ 950 $ 3,250 (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. |
Estimated Fair Values | Fair Value of Debt The estimated fair values, carrying amounts and methods used to determine fair value of long-term debt as of December 31, 2020 and 2019 are included in the following table and accompanying notes as of December 31, 2020 and 2019. See Note 19. Fair Value Measurements for more information on fair value guidance and the hierarchy that prioritizes the inputs to fair value measurements into three levels. December 31, 2020 December 31, 2019 Carrying Fair Carrying Fair Millions Long-Term Debt: PSEG (A) (B) $ 2,929 $ 3,092 $ 2,441 $ 2,479 PSE&G (B) 10,909 13,372 9,827 11,107 PSEG Power (B) 2,342 2,679 2,840 3,137 Total Long-Term Debt $ 16,180 $ 19,143 $ 15,108 $ 16,723 (A) Includes a floating-rate term loan of $700 million at PSEG as of December 31, 2019. The fair value of the term loan debt (Level 2 measurement) approximates the carrying value because the interest payments are based on LIBOR rates that are reset monthly and the debt is redeemable at face value by PSEG at any time. |
Schedule Of Consolidated Capi_2
Schedule Of Consolidated Capital Stock (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Class of Stock Disclosures [Abstract] | |
Schedule Of Consolidated Capital Stock | As of December 31, Outstanding Shares Book Value 2020 2019 2020 2019 Millions PSEG Common Stock (no par value) (A) Authorized 1,000 shares 504 504 $ 4,170 $ 4,172 |
Financial Risk Management Act_2
Financial Risk Management Activities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure Financial Risk Management Activities [Abstract] | |
Schedule Of Derivative Instruments Fair Value In Balance Sheets | As of December 31, 2020 PSEG Power (A) Consolidated Not Designated Balance Sheet Location Energy- Netting Total Total Millions Derivative Contracts Current Assets $ 464 $ (404) $ 60 $ 60 Noncurrent Assets 93 (84) 9 9 Total Mark-to-Market Derivative Assets $ 557 $ (488) $ 69 $ 69 Derivative Contracts Current Liabilities $ (412) $ 391 $ (21) $ (21) Noncurrent Liabilities (109) 105 (4) (4) Total Mark-to-Market Derivative (Liabilities) $ (521) $ 496 $ (25) $ (25) Total Net Mark-to-Market Derivative Assets (Liabilities) $ 36 $ 8 $ 44 $ 44 As of December 31, 2019 PSEG Power (A) PSEG (A) Consolidated Not Designated Cash Flow Balance Sheet Location Energy- Netting Total Interest Total 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 December 31, 2020 and 2019. |
Schedule Of Derivative Instruments Designated As Cash Flow Hedges | The following shows the effect on the Consolidated Statements of Operations and on Accumulated Other Comprehensive Loss (AOCL) of derivative instruments designated as cash flow hedges for the years ended December 31, 2020, 2019 and 2018. Amount of Pre-Tax Location of Amount of Pre-Tax Derivatives in Cash Flow Hedging Relationships Years Ended Years Ended 2020 2019 2018 2020 2019 2018 Millions Millions PSEG Interest Rate Swaps $ (6) $ (23) $ (2) Interest Expense $ (14) $ (4) $ — Total PSEG $ (6) $ (23) $ (2) $ (14) $ (4) $ — |
Schedule Of Reconciliation For Derivative Activity Included In Accumulated Other Comprehensive Loss | The following reconciles the Accumulated Other Comprehensive Income (Loss) for derivative activity included in the AOCL 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 14 10 Balance as of December 31, 2020 $ (13) $ (9) |
Schedule Of Derivative Instruments Not Designated As Hedging Instruments And Impact On Results Of Operations | The following shows the effect on the Consolidated Statements of Operations of derivative instruments not designated as hedging instruments or as NPNS for the years ended December 31, 2020, 2019 and 2018. 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 Pre-Tax Gain (Loss) Years Ended December 31, 2020 2019 2018 Millions PSEG Power Energy-Related Contracts Operating Revenues $ 279 $ 560 $ (182) Energy-Related Contracts Energy Costs (142) (119) (9) Total PSEG and PSEG Power $ 137 $ 441 $ (191) |
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 December 31, 2020 and 2019. Type Notional Total PSEG PSEG Power PSE&G Millions As of December 31, 2020 Natural Gas Dekatherm (Dth) 321 — 321 — Electricity MWh (66) — (66) — Financial Transmission Rights (FTRs) MWh 20 — 20 — 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 — — |
Schedule Providing Credit Risk From Others, Net Of Collateral | Rating Current Securities Net Number of Net Exposure of Millions Millions Investment Grade $ 337 $ 39 $ 298 1 $ 169 Non-Investment Grade 40 — 40 1 40 Total $ 377 $ 39 $ 338 2 $ 209 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on 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 December 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 December 31, 2020 Description Total Netting (D) Quoted Market Prices for Identical Assets Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs Millions PSEG Assets: Cash Equivalents (A) $ 312 $ — $ 312 $ — $ — Derivative Contracts: Energy-Related Contracts (B) $ 69 $ (488) $ 26 $ 519 $ 12 NDT Fund (C) Equity Securities $ 1,352 $ — $ 1,351 $ 1 $ — Debt Securities—U.S. Treasury $ 239 $ — $ — $ 239 $ — Debt Securities—Govt Other $ 342 $ — $ — $ 342 $ — Debt Securities—Corporate $ 566 $ — $ — $ 566 $ — Rabbi Trust (C) Equity Securities $ 31 $ — $ 31 $ — $ — Debt Securities—U.S. Treasury $ 59 $ — $ — $ 59 $ — Debt Securities—Govt Other $ 41 $ — $ — $ 41 $ — Debt Securities—Corporate $ 135 $ — $ — $ 135 $ — Liabilities: Derivative Contracts: Energy-Related Contracts (B) $ (25) $ 496 $ (33) $ (483) $ (5) PSE&G Assets: Cash Equivalents (A) $ 50 $ — $ 50 $ — $ — Rabbi Trust (C) Equity Securities $ 6 $ — $ 6 $ — $ — Debt Securities—U.S. Treasury $ 11 $ — $ — $ 11 $ — Debt Securities—Govt Other $ 8 $ — $ — $ 8 $ — Debt Securities—Corporate $ 26 $ — $ — $ 26 $ — PSEG Power Assets: Derivative Contracts: Energy-Related Contracts (B) $ 69 $ (488) $ 26 $ 519 $ 12 NDT Fund (C) Equity Securities $ 1,352 $ — $ 1,351 $ 1 $ — Debt Securities—U.S. Treasury $ 239 $ — $ — $ 239 $ — Debt Securities—Govt Other $ 342 $ — $ — $ 342 $ — Debt Securities—Corporate $ 566 $ — $ — $ 566 $ — Rabbi Trust (C) Equity Securities $ 8 $ — $ 8 $ — $ — Debt Securities—U.S. Treasury $ 15 $ — $ — $ 15 $ — Debt Securities—Govt Other $ 10 $ — $ — $ 10 $ — Debt Securities—Corporate $ 33 $ — $ — $ 33 $ — Liabilities: Derivative Contracts: Energy-Related Contracts (B) $ (25) $ 496 $ (33) $ (483) $ (5) Recurring Fair Value Measurements as of December 31, 2019 Description Total Netting (D) Quoted Market Prices for Identical Assets Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs 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 (E) $ (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, 2020 and 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) Represents the netting of fair value balances with the same counterparty (where the right of offset exists) and the application of collateral. See Note 18. Financial Risk Management Activities for additional detail. (E) 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. |
Schedule Of Quantitative Information About Level 3 Fair Value Measurements | The following tables provide details surrounding significant Level 3 valuations as of December 31, 2020 and 2019. Quantitative Information About Level 3 Fair Value Measurements Commodity Level 3 Position Fair Value as of December 31, 2020 Valuation Significant Range Arithmetic Average Assets (Liabilities) Millions PSEG Power Electricity Electric Load Contracts $ 12 $ — Discounted Cash flow Load Shaping Cost 0% to 11% 4% Gas Gas Physical Contracts — (2) Discounted Cash flow Historical Basis Adjustment ' -60% to -30% -43% Electricity Other (A) — (3) Total PSEG Power $ 12 $ (5) Total PSEG $ 12 $ (5) Quantitative Information About Level 3 Fair Value Measurements Commodity Level 3 Position Fair Value as of December 31, 2019 Valuation Significant 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) |
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 years ended December 31, 2020 and 2019, respectively, follows: Changes in Level 3 Assets and (Liabilities) Measured at Fair Value on a Recurring Basis for the Year Ended December 31, 2020 Description Balance as of December 31, 2019 Total Gains or (Losses) Purchases, Issuances/ Transfers Balance as of December 31, 2020 PSEG and PSEG Power Net Derivative Assets (Liabilities) $ 7 $ 16 $ — $ (16) $ — $ 7 Changes in Level 3 Assets and (Liabilities) Measured at Fair Value on a Recurring Basis for the Year Ended December 31, 2019 Description Balance as of December 31, 2018 Total Gains or (Losses) Purchases, (Sales) Issuances/ Settlements (B) Transfers In/Out (C) Balance as of December 31, 2019 Millions PSEG and PSEG Power Net Derivative Assets (Liabilities) $ 1 $ 14 $ — $ (8) $ — $ 7 (A) Unrealized gains (losses) in the following table represent the change in derivative assets and liabilities still held as of December 31, 2020 and 2019. Years Ended December 31, 2020 2019 Total Gains (Losses) Unrealized Gains (Losses) Total Gains (Losses) Unrealized Gains (Losses) Millions PSEG and PSEG Power Operating Revenues $ 26 $ 1 $ 23 $ 12 Energy Costs (10) 1 (9) (6) Total $ 16 $ 2 $ 14 $ 6 (B) Includes $(14) million and $(7) million in settlements for derivative contracts in 2020 and 2019. |
Schedule of Change in Derivative Assets and Liabilities still Held | Unrealized gains (losses) in the following table represent the change in derivative assets and liabilities still held as of December 31, 2020 and 2019. Years Ended December 31, 2020 2019 Total Gains (Losses) Unrealized Gains (Losses) Total Gains (Losses) Unrealized Gains (Losses) Millions PSEG and PSEG Power Operating Revenues $ 26 $ 1 $ 23 $ 12 Energy Costs (10) 1 (9) (6) Total $ 16 $ 2 $ 14 $ 6 |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Share-based Payment Award, Valuation Assumptions [Table Text Block] | PSEG recognizes compensation expense for the total shareholder return (TSR) target for its PSU awards based on the grant date fair values of the award, which are determined using the Monte Carlo model. The following table provides the assumptions used to calculate the grant date fair value of the TSR portion of the PSU awards for 2020, 2019 and 2018: Grant Date Risk-Free Interest Rate Volatility February 18, 2020 1.36% 15.00% February 19, 2019 2.47% 16.74% February 20, 2018 2.36% 17.57% |
Share Based Compensation Impacts | 2020 2019 2018 Millions Compensation Cost included in O&M Expense $ 35 $ 33 $ 30 Income Tax Benefit Recognized in Consolidated Statement of Operations $ 10 $ 9 $ 9 |
Activity For Options Exercised | Activity for options exercised for the years ended December 31, 2020, 2019 and 2018 is shown below: 2020 2019 2018 Millions Total Intrinsic Value of Options Exercised $ — $ 5 $ 2 Cash Received from Options Exercised $ — $ 8 $ 4 Tax Benefit Realized from Options Exercised $ — $ 1 $ — |
Restricted Stock Units Activity | Changes in RSUs for the year ended December 31, 2020 are summarized as follows: Shares Weighted Weighted Average Aggregate Non-vested as of January 1, 2020 214,981 $ 50.41 Granted 219,749 $ 58.85 Vested 203,032 $ 55.20 Canceled/Forfeited 8,800 $ 54.13 Non-vested as of December 31, 2020 222,898 $ 54.21 0.9 $ 12,994,953 |
Performance Units Information | Changes in PSUs for the year ended December 31, 2020 are summarized as follows: Shares Weighted Weighted Average Aggregate Non-vested as of January 1, 2020 334,515 $ 59.30 Granted 447,815 $ 51.79 Vested 285,977 $ 54.96 Canceled/Forfeited 20,512 $ 58.37 Non-vested as of December 31, 2020 475,841 $ 54.88 1.7 $ 27,741,530 |
Other Income and Deductions (Ta
Other Income and Deductions (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Other Income and Deductions Disclosure [Abstract] | |
Schedule Of Other Income | PSE&G PSEG Power Other (A) Consolidated Millions Year Ended December 31, 2020 NDT Fund Interest and Dividends $ — $ 52 $ — $ 52 Allowance for Funds Used During Construction 87 — — 87 Solar Loan Interest 15 — — 15 Donations — — (3) (3) Purchase of Tax Losses under New Jersey Technology Tax Benefit Transfer Program — (36) — (36) Other 6 (4) (2) — Total Other Income (Deductions) $ 108 $ 12 $ (5) $ 115 Year Ended December 31, 2019 NDT Fund Interest and Dividends $ — $ 57 $ — $ 57 Allowance for Funds Used During Construction 59 — — 59 Solar Loan Interest 16 — — 16 Donations — — (11) (11) Other 8 (3) (1) 4 Total Other Income (Deductions) $ 83 $ 54 $ (12) $ 125 Year Ended December 31, 2018 NDT Fund Interest and Dividends $ — $ 52 $ — $ 52 Allowance for Funds Used During Construction 54 — — 54 Solar Loan Interest 18 — — 18 Donations — — (17) (17) Purchase of Tax Losses under New Jersey Technology Tax Benefit Transfer Program — (26) — (26) Other 8 (5) 1 4 Total Other Income (Deductions) $ 80 $ 21 $ (16) $ 85 |
Schedule Of Other Deductions | Other consists of activity at PSEG (as parent company), Energy Holdings, Services, PSEG LI and intercompany eliminations. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Taxes [Line Items] | |
Unrecognized Tax Benefits | 2020 PSEG PSE&G PSEG Power Energy Millions Total Amount of Unrecognized Tax Benefits as of January 1, 2020 $ 321 $ 124 $ 161 $ 33 Increases as a Result of Positions Taken in a Prior Period 33 21 10 1 Decreases as a Result of Positions Taken in a Prior Period (91) (51) (36) (4) Increases as a Result of Positions Taken during the Current Period — — — — Decreases as a Result of Positions Taken during the Current Period — — — — Decreases as a Result of Settlements with Taxing Authorities (116) (64) (52) — Decreases due to Lapses of Applicable Statute of Limitations — — — — Total Amount of Unrecognized Tax Benefits as of December 31, 2020 $ 147 $ 30 $ 83 $ 30 Accumulated Deferred Income Taxes Associated with Unrecognized Tax Benefits (69) (12) (49) (8) Regulatory Asset—Unrecognized Tax Benefits (15) (15) — — Total Amount of Unrecognized Tax Benefits that if Recognized, would Impact the Effective Tax Rate (including Interest and Penalties) $ 63 $ 3 $ 34 $ 22 2019 PSEG PSE&G PSEG Power Energy Millions Total Amount of Unrecognized Tax Benefits as of January 1, 2019 $ 318 $ 108 $ 151 $ 54 Increases as a Result of Positions Taken in a Prior Period 17 5 8 5 Decreases as a Result of Positions Taken in a Prior Period (37) (1) (13) (22) Increases as a Result of Positions Taken during the Current Period 27 12 15 — Decreases as a Result of Positions Taken during the Current Period — — — — Decreases as a Result of Settlements with Taxing Authorities (4) — — (4) Decreases due to Lapses of Applicable Statute of Limitations — — — — Total Amount of Unrecognized Tax Benefits as of December 31, 2019 $ 321 $ 124 $ 161 $ 33 Accumulated Deferred Income Taxes Associated with Unrecognized Tax Benefits (184) (71) (105) (7) Regulatory Asset—Unrecognized Tax Benefits (46) (46) — — Total Amount of Unrecognized Tax Benefits that if Recognized, would Impact the Effective Tax Rate (including Interest and Penalties) $ 91 $ 7 $ 56 $ 26 2018 PSEG PSE&G PSEG Power Energy Millions Total Amount of Unrecognized Tax Benefits as of January 1, 2018 $ 334 $ 135 $ 142 $ 53 Increases as a Result of Positions Taken in a Prior Period 11 4 4 3 Decreases as a Result of Positions Taken in a Prior Period (70) (31) (37) (2) Increases as a Result of Positions Taken during the Current Period 52 3 48 — Decreases as a Result of Positions Taken during the Current Period (3) (3) — — Decreases as a Result of Settlements with Taxing Authorities (6) — (6) — Decreases due to Lapses of Applicable Statute of Limitations — — — — Total Amount of Unrecognized Tax Benefits as of December 31, 2018 $ 318 $ 108 $ 151 $ 54 Accumulated Deferred Income Taxes Associated with Unrecognized Tax Benefits (173) (57) (104) (12) Regulatory Asset—Unrecognized Tax Benefits (46) (46) — — Total Amount of Unrecognized Tax Benefits that if Recognized, would Impact the Effective Tax Rate (including Interest and Penalties) $ 99 $ 5 $ 47 $ 42 |
Interest And Penalties Related To Uncertain Tax Positions | PSEG and its subsidiaries include accrued interest and penalties related to uncertain tax positions required to be recorded as Income Tax Expense in the Consolidated Statements of Operations. Accumulated interest and penalties that are recorded on the Consolidated Balance Sheets on uncertain tax positions were as follows: Accumulated Interest and Penalties 2020 2019 2018 Millions PSEG $ 29 $ 40 $ 43 PSE&G $ 9 $ 16 $ 12 PSEG Power $ 5 $ 12 $ 9 Energy Holdings $ 15 $ 13 $ 22 |
Possible Decrease In Total Unrecognized Tax Benefits Including Interest | It is reasonably possible that total unrecognized tax benefits will significantly increase or decrease within the next twelve months due to either agreements with various taxing authorities upon audit, the expiration of the Statute of Limitations, or other pending tax matters. These potential increases or decreases are as follows: Possible (Increase)/Decrease in Total Unrecognized Tax Benefits Over the next Millions PSEG $ 12 PSE&G $ 12 PSEG Power $ — |
Description Of Income Tax Years By Material Jurisdictions | A description of income tax years that remain subject to examination by material jurisdictions, where an examination has not already concluded are: PSEG PSE&G PSEG Power United States Federal 2017-2019 N/A N/A New Jersey 2011-2019 2011-2019 N/A Pennsylvania 2017-2019 2017-2019 N/A Connecticut 2016-2019 N/A N/A Maryland 2017-2019 N/A N/A New York 2017-2019 N/A N/A |
PSEG [Member] | |
Income Taxes [Line Items] | |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of reported income tax expense for PSEG with the amount computed by multiplying pre-tax income by the statutory federal income tax rate of 21% is as follows: Years Ended December 31, PSEG 2020 2019 2018 Millions Net Income $ 1,905 $ 1,693 $ 1,438 Income Taxes: Operating Income: Current (Benefit) Expense: Federal $ 385 $ 84 $ (97) State 48 18 83 Total Current 433 102 (14) Deferred Expense (Benefit): Federal (164) 3 373 State 141 132 71 Total Deferred (23) 135 444 ITC (14) 20 (13) Total Income Tax Expense (Benefit) $ 396 $ 257 $ 417 Pre-Tax Income $ 2,301 $ 1,950 $ 1,855 Tax Computed at Statutory Rate 21% $ 483 $ 410 $ 390 Increase (Decrease) Attributable to Flow-Through of Certain Tax Adjustments: State Income Taxes (net of federal income tax) 147 117 123 Uncertain Tax Positions 3 — (24) NDT Fund 32 34 (13) Plant-Related Items (9) (2) (10) Tax Credits (18) (18) (16) Audit Settlement (27) — — Leasing Activities (35) — — Tax Adjustment Credit (205) (272) (30) Deferred Tax Expense (Benefit) - Tax Act — — 3 Bad Debt Flow-Through 28 — — Other (3) (12) (6) Subtotal (87) (153) 27 Total Income Tax Expense (Benefit) $ 396 $ 257 $ 417 Effective Income Tax Rate 17.2 % 13.2 % 22.5 % |
Deferred Income Taxes | The following is an analysis of deferred income taxes for PSEG: As of December 31, PSEG 2020 2019 Millions Deferred Income Taxes Assets: Noncurrent: Regulatory Liability Excess Deferred Tax $ 485 $ 539 OPEB 135 151 Related to Uncertain Tax Positions 29 97 Interest Disallowance Carry Forward 39 76 Operating Leases 60 64 Other 170 128 Total Noncurrent Assets $ 918 $ 1,055 Liabilities: Noncurrent: Plant-Related Items $ 5,163 $ 5,051 New Jersey Corporate Business Tax 1,016 876 Leasing Activities 133 284 AROs and NDT Fund 324 277 Taxes Recoverable Through Future Rates (net) 114 108 Pension Costs 97 98 Operating Leases 55 59 Other 247 273 Total Noncurrent Liabilities $ 7,149 $ 7,026 Summary of Accumulated Deferred Income Taxes: Net Noncurrent Deferred Income Tax Liabilities $ 6,231 $ 5,971 ITC 271 285 Net Total Noncurrent Deferred Income Taxes and ITC $ 6,502 $ 6,256 |
Public Service Electric and Gas Company | |
Income Taxes [Line Items] | |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of reported income tax expense for PSE&G with the amount computed by multiplying pre-tax income by the statutory federal income tax rate of 21% is as follows: Years Ended December 31, PSE&G 2020 2019 2018 Millions Net Income $ 1,327 $ 1,250 $ 1,067 Income Taxes: Operating Income: Current (Benefit) Expense: Federal $ 179 $ 121 $ (62) State 8 — 1 Total Current 187 121 (61) Deferred Expense (Benefit): Federal (71) (156) 287 State 128 117 122 Total Deferred 57 (39) 409 ITC (4) 11 (4) Total Income Tax Expense $ 240 $ 93 $ 344 Pre-Tax Income $ 1,567 $ 1,343 $ 1,411 Tax Computed at Statutory Rate 21% $ 329 $ 282 $ 296 Increase (Decrease) Attributable to Flow-Through of Certain Tax Adjustments: State Income Taxes (net of federal income tax) 106 92 98 Uncertain Tax Positions 4 1 (1) Plant-Related Items (9) (2) (10) Tax Credits (9) (8) (8) Audit Settlement (2) — — Tax Adjustment Credit (205) (272) (30) Bad Debt Flow-Through 28 — — Other (2) — (1) Subtotal (89) (189) 48 Total Income Tax Expense $ 240 $ 93 $ 344 Effective Income Tax Rate 15.3 % 6.9 % 24.4 % |
Deferred Income Taxes | The following is an analysis of deferred income taxes for PSE&G: As of December 31, PSE&G 2020 2019 Millions Deferred Income Taxes Assets: Noncurrent: Regulatory Liability Excess Deferred Tax $ 485 $ 539 OPEB 82 97 Related to Uncertain Tax Positions — 42 Operating Leases 21 21 Other 92 55 Total Noncurrent Assets $ 680 $ 754 Liabilities: Noncurrent: Plant-Related Items $ 3,874 $ 3,754 New Jersey Corporate Business Tax 721 588 Pension Costs 166 160 Taxes Recoverable Through Future Rates (net) 114 108 Conservation Costs 61 44 Operating Leases 21 21 Related to Uncertain Tax Positions 5 — Other 161 183 Total Noncurrent Liabilities $ 5,123 $ 4,858 Summary of Accumulated Deferred Income Taxes: Net Noncurrent Deferred Income Tax Liabilities $ 4,443 $ 4,104 ITC 81 85 Net Total Noncurrent Deferred Income Taxes and ITC $ 4,524 $ 4,189 |
PSEG Power LLC | |
Income Taxes [Line Items] | |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of reported income tax expense for PSEG Power with the amount computed by multiplying pre-tax income by the statutory federal income tax rate of 21% is as follows: Years Ended December 31, PSEG Power 2020 2019 2018 Millions Net Income $ 594 $ 468 $ 365 Income Taxes: Operating Income: Current (Benefit) Expense: Federal $ 135 $ (48) $ (164) State (7) 3 24 Total Current 128 (45) (140) Deferred Expense (Benefit): Federal 39 208 214 State 31 31 1 Total Deferred 70 239 215 ITC (10) 9 (9) Total Income Tax Expense (Benefit) $ 188 $ 203 $ 66 Pre-Tax Income $ 782 $ 671 $ 431 Tax Computed at Statutory Rate 21% $ 164 $ 141 $ 91 Increase (Decrease) Attributable to Flow-Through of Certain Tax Adjustments: State Income Taxes (net of federal income tax) 18 25 21 NDT Fund 32 34 (13) Tax Credits (9) (10) (7) Uncertain Tax Positions 5 11 (24) Audit Settlement (21) — — Deferred Tax Benefit - Tax Act — — (1) Other (1) 2 (1) Subtotal 24 62 (25) Total Income Tax Expense (Benefit) $ 188 $ 203 $ 66 Effective Income Tax Rate 24.0 % 30.3 % 15.3 % |
Deferred Income Taxes | The following is an analysis of deferred income taxes for PSEG Power: As of December 31, PSEG Power 2020 2019 Millions Deferred Income Taxes Assets: Noncurrent: Related to Uncertain Tax Positions $ 38 $ 72 Pension Costs 68 61 OPEB 41 40 Operating Leases 13 15 Interest Disallowance Carry Forward 6 12 Contractual Liabilities & Environmental Costs 6 7 Other 36 30 Total Noncurrent Assets $ 208 $ 237 Liabilities: Noncurrent: Plant-Related Items $ 1,286 $ 1,292 New Jersey Corporate Business Tax 308 282 AROs and NDT Fund 325 278 Operating Leases 13 15 Other 21 45 Total Noncurrent Liabilities $ 1,953 $ 1,912 Summary of Accumulated Deferred Income Taxes: Net Noncurrent Deferred Income Tax Liabilities $ 1,745 $ 1,675 ITC 191 201 Net Total Noncurrent Deferred Income Taxes and ITC $ 1,936 $ 1,876 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss), Net of Tax Accumulated Other Comprehensive Income (Loss), Net of Tax (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | Accumulated Other Comprehensive Income (Loss), Net of Tax PSEG Other Comprehensive Income (Loss) Accumulated Other Comprehensive Income (Loss) Cash Flow Hedges Pension and OPEB Plans Available-for -Sale Securities Total Millions Balance as of December 31, 2017 $ — $ (406) $ 177 $ (229) Cumulative Effect Adjustment to Reclassify Unrealized Net Gains on Equity Investments to Retained Earnings — — (176) (176) Current Period Other Comprehensive Income (Loss) Other Comprehensive Income (Loss) before Reclassifications (1) 17 (25) (9) Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) — 29 8 37 Net Current Period Other Comprehensive Income (Loss) (1) 46 (17) 28 Net Change in Accumulated Other Comprehensive Income (Loss) (1) 46 (193) (148) Balance as of December 31, 2018 $ (1) $ (360) $ (16) $ (377) 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 (Loss) before Reclassifications (17) (70) 49 (38) Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) 3 12 (8) 7 Net Current Period Other Comprehensive Income (Loss) (14) (58) 41 (31) Net Change in Accumulated Other Comprehensive Income (Loss) (14) (139) 41 (112) Balance as of December 31, 2019 $ (15) $ (499) $ 25 $ (489) Other Comprehensive Income (Loss) before Reclassifications (4) (58) 51 (11) Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) 10 12 (26) (4) Net Current Period Other Comprehensive Income (Loss) 6 (46) 25 (15) Balance as of December 31, 2020 $ (9) $ (545) $ 50 $ (504) PSEG Power Other Comprehensive Income (Loss) Accumulated Other Comprehensive Income (Loss) Cash Flow Hedges Pension and OPEB Plans Available-for -Sale Securities Total Millions Balance as of December 31, 2017 $ — $ (347) $ 175 $ (172) Cumulative Effect Adjustment to Reclassify Unrealized Net Gains on Equity Investments to Retained Earnings — — (175) (175) Current Period Other Comprehensive Income (Loss) Other Comprehensive Income (Loss) before Reclassifications — 16 (19) (3) Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) — 25 6 31 Net Current Period Other Comprehensive Income (Loss) — 41 (13) 28 Net Change in Accumulated Other Comprehensive Income (Loss) — 41 (188) (147) Balance as of December 31, 2018 $ — $ (306) $ (13) $ (319) 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 (Loss) before Reclassifications — (55) 38 (17) Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) — 10 (6) 4 Net Current Period Other Comprehensive Income (Loss) — (45) 32 (13) Net Change in Accumulated Other Comprehensive Income (Loss) — (114) 32 (82) Balance as of December 31, 2019 $ — $ (420) $ 19 $ (401) Other Comprehensive Income (Loss) before Reclassifications — (48) 41 (7) Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) — 9 (20) (11) Net Current Period Other Comprehensive Income (Loss) — (39) 21 (18) Balance as of December 31, 2020 $ — $ (459) $ 40 $ (419) |
Reclassification out of Accumulated Other Comprehensive Income [Table Text Block] | PSEG Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) to Income Statement Year Ended December 31, 2018 Description of Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) Location of Pre-Tax Amount in Statement of Operations Pre-Tax Amount Tax (Expense) Benefit After-Tax Amount Millions Pension and OPEB Plans Amortization of Prior Service (Cost) Credit Non-Operating Pension and OPEB Credits (Costs) $ 6 $ (2) $ 4 Amortization of Actuarial Loss Non-Operating Pension and OPEB Credits (Costs) (47) 14 (33) Total Pension and OPEB Plans (41) 12 (29) Available-for-Sale Securities Realized Gains (Losses) Net Gains (Losses) on Trust Investments (13) 5 (8) Total Available-for-Sale Securities (13) 5 (8) Total $ (54) $ 17 $ (37) PSEG Power Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) to Income Statement Year Ended December 31, 2018 Description of Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) Location of Pre-Tax Amount in Statement of Operations Pre-Tax Amount Tax (Expense) Benefit After-Tax Amount Millions Pension and OPEB Plans Amortization of Prior Service (Cost) Credit Non-Operating Pension and OPEB Credits (Costs) $ 5 $ (1) $ 4 Amortization of Actuarial Loss Non-Operating Pension and OPEB Credits (Costs) (40) 11 (29) Total Pension and OPEB Plans (35) 10 (25) Available-for-Sale Securities Realized Gains (Losses) Net Gains (Losses) on Trust Investments (11) 5 (6) Total Available-for-Sale Securities (11) 5 (6) Total $ (46) $ 15 $ (31) PSEG Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) to Income Statement Year Ended December 31, 2019 Description of Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) Location of Pre-Tax Amount in Statement of Operations Pre-Tax Amount Tax (Expense) Benefit After-Tax Amount Millions Cash Flow Hedges Interest Rate Swaps Interest Expense $ (4) $ 1 $ (3) Total Cash Flow Hedges (4) 1 (3) Pension and OPEB Plans Amortization of Prior Service (Cost) Credit Non-Operating Pension and OPEB Credits (Costs) 26 (7) 19 Amortization of Actuarial Loss Non-Operating Pension and OPEB Credits (Costs) (43) 12 (31) Total Pension and OPEB Plans (17) 5 (12) Available-for-Sale Securities Realized Gains (Losses) Net Gains (Losses) on Trust Investments 13 (5) 8 Total Available-for-Sale Securities 13 (5) 8 Total $ (8) $ 1 $ (7) PSEG Power Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) to Income Statement Year Ended December 31, 2019 Description of Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) Location of Pre-Tax Amount in Statement of Operations Pre-Tax Amount Tax (Expense) Benefit After-Tax Amount Millions Pension and OPEB Plans Amortization of Prior Service (Cost) Credit Non-Operating Pension and OPEB Credits (Costs) $ 23 $ (7) $ 16 Amortization of Actuarial Loss Non-Operating Pension and OPEB Credits (Costs) (36) 10 (26) Total Pension and OPEB Plans (13) 3 (10) Available-for-Sale Securities Realized Gains (Losses) Net Gains (Losses) on Trust Investments 10 (4) 6 Total Available-for-Sale Securities 10 (4) 6 Total $ (3) $ (1) $ (4) PSEG Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) to Income Statement Year Ended December 31, 2020 Description of Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) Location of Pre-Tax Amount in Statement of Operations Pre-Tax Amount Tax (Expense) Benefit After-Tax Amount Millions Cash Flow Hedges Interest Rate Swaps Interest Expense $ (14) $ 4 $ (10) Total Cash Flow Hedges (14) 4 (10) Pension and OPEB Plans Amortization of Prior Service (Cost) Credit Non-Operating Pension and OPEB Credits (Costs) 24 (7) 17 Amortization of Actuarial Loss Non-Operating Pension and OPEB Credits (Costs) (40) 11 (29) Total Pension and OPEB Plans (16) 4 (12) Available-for-Sale Securities Realized Gains (Losses) and Impairments Net Gains (Losses) on Trust Investments 42 (16) 26 Total Available-for-Sale Securities 42 (16) 26 Total $ 12 $ (8) $ 4 PSEG Power Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) to Income Statement Year Ended December 31, 2020 Description of Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) Location of Pre-Tax Amount in Statement of Operations Pre-Tax Amount Tax (Expense) Benefit After-Tax Amount Millions Pension and OPEB Plans Amortization of Prior Service (Cost) Credit Non-Operating Pension and OPEB Credits (Costs) $ 21 $ (6) $ 15 Amortization of Actuarial Loss Non-Operating Pension and OPEB Credits (Costs) (34) 10 (24) Total Pension and OPEB Plans (13) 4 (9) Available-for-Sale Securities Realized Gains (Losses) and Impairments Net Gains (Losses) on Trust Investments 34 (14) 20 Total Available-for-Sale Securities 34 (14) 20 Total $ 21 $ (10) $ 11 |
Earnings Per Share (EPS) and _2
Earnings Per Share (EPS) and Dividends (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Basic And Diluted Earnings Per Share Computation | The following table shows the effect of these stock options, PSUs and RSUs on the weighted average number of shares outstanding used in calculating diluted EPS: Years Ended December 31, 2020 2019 2018 Basic Diluted Basic Diluted Basic Diluted EPS Numerator: (Millions) Net Income $ 1,905 $ 1,905 $ 1,693 $ 1,693 $ 1,438 $ 1,438 EPS Denominator: (Millions) Weighted Average Common Shares Outstanding 504 504 504 504 504 504 Effect of Stock Based Compensation Awards — 3 — 3 — 3 Total Shares 504 507 504 507 504 507 EPS: Net Income $ 3.78 $ 3.76 $ 3.35 $ 3.33 $ 2.85 $ 2.83 |
Dividend Payments On Common Stock | Years Ended December 31, Dividend Payments on Common Stock 2020 2019 2018 Per Share $ 1.96 $ 1.88 $ 1.80 in Millions $ 991 $ 950 $ 910 |
Financial Information By Busi_2
Financial Information By Business Segments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Financial Information By Business Segments | PSE&G PSEG Power Other (A) Eliminations (B) Consolidated Millions Year Ended December 31, 2020 Operating Revenues $ 6,608 $ 3,634 $ 595 $ (1,234) $ 9,603 Depreciation and Amortization 887 368 30 — 1,285 Operating Income (Loss) 1,639 603 28 — 2,270 Income from Equity Method Investments — 14 — — 14 Interest Income 17 6 5 (3) 25 Interest Expense 388 121 94 (3) 600 Income (Loss) before Income Taxes 1,567 782 (48) — 2,301 Income Tax Expense (Benefit) 240 188 (32) — 396 Net Income (Loss) (C) $ 1,327 $ 594 $ (16) $ — $ 1,905 Gross Additions to Long-Lived Assets $ 2,507 $ 404 $ 12 $ — $ 2,923 As of December 31, 2020 Total Assets $ 35,581 $ 12,704 $ 2,692 $ (927) $ 50,050 Investments in Equity Method Subsidiaries $ — $ 64 $ — $ — $ 64 PSE&G PSEG Power Other (A) Eliminations (B) Consolidated Millions Year Ended December 31, 2019 Operating Revenues $ 6,625 $ 4,385 $ 549 $ (1,483) $ 10,076 Depreciation and Amortization 837 377 34 — 1,248 Operating Income (Loss) 1,469 448 26 — 1,943 Income from Equity Method Investments — 14 — — 14 Interest Income 18 7 6 (5) 26 Interest Expense 361 119 94 (5) 569 Income (Loss) before Income Taxes 1,343 671 (64) — 1,950 Income Tax Expense (Benefit) 93 203 (39) — 257 Net Income (Loss) (C) $ 1,250 $ 468 $ (25) $ — $ 1,693 Gross Additions to Long-Lived Assets $ 2,542 $ 607 $ 17 $ — $ 3,166 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 PSE&G PSEG Power Other (A) Eliminations (B) Consolidated Millions Year Ended December 31, 2018 Operating Revenues $ 6,471 $ 4,146 $ 571 $ (1,492) $ 9,696 Depreciation and Amortization 770 354 34 — 1,158 Operating Income (Loss) 1,606 596 96 — 2,298 Income from Equity Method Investments — 15 — — 15 Interest Income 21 5 9 (6) 29 Interest Expense 333 76 73 (6) 476 Income (Loss) before Income Taxes 1,411 431 13 — 1,855 Income Tax Expense (Benefit) 344 66 7 — 417 Net Income (Loss) $ 1,067 $ 365 $ 6 $ — $ 1,438 Gross Additions to Long-Lived Assets $ 2,896 $ 996 $ 20 $ — $ 3,912 As of December 31, 2018 Total Assets $ 31,109 $ 12,594 $ 2,604 $ (981) $ 45,326 Investments in Equity Method Subsidiaries $ — $ 86 $ — $ — $ 86 (A) Includes amounts applicable to Energy Holdings and PSEG LI, which are below the quantitative threshold for separate disclosure as reportable segments. Other also includes amounts applicable to PSEG (parent corporation) and Services. (B) Intercompany eliminations primarily relate to intercompany transactions between PSE&G and PSEG Power. For a further discussion of the intercompany transactions between PSE&G and PSEG Power, see Note 26. Related-Party Transactions. (C) Includes an after-tax gain of $86 million in the year ended December 31, 2020 related to the sale of PSEG Power’s interest in the Yards Creek generation facility and an after-tax loss of $286 million in the year ended December 31, 2019 related to the sale of PSEG Power’s ownership interests in the Keystone and Conemaugh fossil generation plants. See Note 4. Early Plant Retirements/Asset Dispositions for additional information. |
Related-Party Transactions (Tab
Related-Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Public Service Electric and Gas Company | |
Related Party Transaction [Line Items] | |
Schedule Of Related Party Transactions, Revenue | The financial statements for PSE&G include transactions with related parties presented as follows: Years Ended December 31, Related Party Transactions 2020 2019 2018 Millions Billings from Affiliates: Net Billings from PSEG Power (A) $ 1,207 $ 1,512 $ 1,514 Administrative Billings from Services (B) 337 310 333 Total Billings from Affiliates $ 1,544 $ 1,822 $ 1,847 |
Schedule Of Related Party Transactions, Payables | Years Ended December 31, Related Party Transactions 2020 2019 Millions Receivables from PSEG (C) $ — $ 1 Payable to PSEG Power (A) $ 273 $ 307 Payable to Services (B) 95 83 Payable to PSEG (C) 111 — Accounts Payable—Affiliated Companies $ 479 $ 390 Working Capital Advances to Services (D) $ 33 $ 33 Long-Term Accrued Taxes Payable $ 7 $ 115 |
PSEG Power LLC | |
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: Years Ended December 31, Related Party Transactions 2020 2019 2018 Millions Billings to Affiliates: Net Billings to PSE&G (A) $ 1,207 $ 1,512 1,514 Billings from Affiliates: Administrative Billings from Services (B) $ 160 $ 156 $ 145 |
Schedule Of Related Party Transactions, Receivables | Years Ended December 31, Related Party Transactions 2020 2019 Millions Receivable from PSE&G (A) $ 273 $ 307 Receivables from PSEG (C) 44 101 Accounts Receivable—Affiliated Companies $ 317 $ 408 Payable to Services (B) $ 13 $ 5 Accounts Payable—Affiliated Companies $ 13 $ 5 Short-Term Loan to (from) Affiliate (E) $ 161 $ 149 Working Capital Advances to Services (D) $ 17 $ 17 Long-Term Accrued Taxes Payable $ 57 $ 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 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. |
Organization, Basis Of Presen_4
Organization, Basis Of Presentation And Summary Of Significant Accounting Policies (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Public Service Electric and Gas Company | ||
Organization Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||
Basis Adjustment | $ 986 | $ 986 |
PSEG Power LLC | ||
Organization Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||
Basis Adjustment | (986) | $ (986) |
Inventory Write-down | $ 2 |
Organization, Basis Of Presen_5
Organization, Basis Of Presentation And Summary Of Significant Accounting Policies Organization, Basic of Presentation And Summary Of Significant Accounting Policies (Cash, Cash Equivalents and Restricted Cash) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Organization Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||||
Cash and Cash Equivalents | $ 543 | $ 147 | |||
Restricted Cash and Investments, Noncurrent | 22 | 18 | |||
Restricted Cash and Investments, Current | 7 | 11 | |||
Cash, Cash Equivalents and Restricted Cash | 572 | 176 | $ 199 | $ 315 | |
Public Service Electric and Gas Company | |||||
Organization Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||||
Cash and Cash Equivalents | 204 | 21 | |||
Restricted Cash and Investments, Noncurrent | 22 | 18 | |||
Restricted Cash and Investments, Current | 7 | 11 | |||
Cash, Cash Equivalents and Restricted Cash | 233 | 50 | 61 | 244 | |
PSEG Power LLC | |||||
Organization Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||||
Cash and Cash Equivalents | 27 | 21 | |||
Restricted Cash and Investments, Noncurrent | 0 | 0 | |||
Restricted Cash and Investments, Current | 0 | 0 | |||
Cash, Cash Equivalents and Restricted Cash | 27 | 21 | $ 22 | $ 32 | |
Other [Member] | |||||
Organization Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||||
Cash and Cash Equivalents | 312 | 105 | |||
Restricted Cash and Investments, Noncurrent | 0 | 0 | |||
Restricted Cash and Investments, Current | 0 | 0 | |||
Cash, Cash Equivalents and Restricted Cash | [1] | $ 312 | $ 105 | ||
[1] | Includes amounts applicable to PSEG (parent company), Energy Holdings and Services. |
Organization, Basis Of Presen_6
Organization, Basis Of Presentation And Summary Of Significant Accounting Policies (Depreciation Rate Stated Percentage) (Details) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
General Plant Assets [Member] | Minimum | PSEG Power LLC | |||
Organization Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||
Estimated useful lives | 3 years | ||
General Plant Assets [Member] | Maximum [Member] | PSEG Power LLC | |||
Organization Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||
Estimated useful lives | 20 years | ||
Fossil Production [Member] | Minimum | PSEG Power LLC | |||
Organization Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||
Estimated useful lives | 30 years | ||
Fossil Production [Member] | Maximum [Member] | PSEG Power LLC | |||
Organization Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||
Estimated useful lives | 56 years | ||
Nuclear Production [Member] | Minimum | PSEG Power LLC | |||
Organization Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||
Estimated useful lives | 60 years | ||
Nuclear Production [Member] | Maximum [Member] | PSEG Power LLC | |||
Organization Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||
Estimated useful lives | 80 years | ||
Solar Assets [Member] | Minimum | PSEG Power LLC | |||
Organization Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||
Estimated useful lives | 25 years | ||
Solar Assets [Member] | Maximum [Member] | PSEG Power LLC | |||
Organization Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||
Estimated useful lives | 35 years | ||
Electric Transmission [Member] | Public Service Electric and Gas Company | |||
Organization Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||
Depreciation Rate | 2.41% | 2.41% | 2.42% |
Electric Distribution [Member] | Public Service Electric and Gas Company | |||
Organization Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||
Depreciation Rate | 2.55% | 2.54% | 2.51% |
Gas Distribution [Member] | Public Service Electric and Gas Company | |||
Organization Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||
Depreciation Rate | 1.84% | 1.85% | 1.61% |
Organization, Basis Of Presen_7
Organization, Basis Of Presentation And Summary Of Significant Accounting Policies (Amounts And Average Rates Used To Calculate IDC Or AFUDC) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Public Service Electric and Gas Company | |||
Organization Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||
IDC/AFUDC | $ 112 | $ 81 | $ 70 |
Average Rate | 7.86% | 7.22% | 7.74% |
PSEG Power LLC | |||
Organization Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||
IDC/AFUDC | $ 10 | $ 27 | $ 67 |
Average Rate | 4.60% | 4.60% | 4.60% |
Recent Accounting Standards New
Recent Accounting Standards New Standards Adopted (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2020 | Jan. 01, 2020 | |
Public Service Electric and Gas Company | |||
New Accounting Pronouncement, Early Adoption [Line Items] | |||
Accounts Receivable and Unbilled Revenues, Allowance for Credit Losses | $ 206 | ||
Regulatory Assets | $ 4,028 | $ 4,241 | |
Public Service Electric and Gas Company | Cumulative Effect, Period of Adoption, Adjustment | |||
New Accounting Pronouncement, Early Adoption [Line Items] | |||
Accounts Receivable and Unbilled Revenues, Allowance for Credit Losses | $ 8 | ||
Regulatory Assets | 6 | ||
Retained Earnings, Unappropriated | $ 2 | ||
PSEG Power LLC | |||
New Accounting Pronouncement, Early Adoption [Line Items] | |||
Goodwill, Impairment Loss | $ 16 |
Revenues Revenues (Details)
Revenues Revenues (Details) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2020USD ($)$ / mwdMW | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Jan. 01, 2020USD ($) | |||
Lease losses included in Revenues | $ 26 | $ 58 | $ 8 | |||
Revenue from Contract with Customer, Including Assessed Tax | 9,099 | 9,308 | 9,337 | |||
Revenues Unrelated to Contracts with Customers | [1] | 504 | 768 | 359 | ||
Operating Revenues | 9,603 | 10,076 | 9,696 | |||
Intersegment Eliminations [Member] | ||||||
Revenue from Contract with Customer, Including Assessed Tax | (1,234) | (1,483) | (1,492) | |||
Revenues Unrelated to Contracts with Customers | 0 | 0 | 0 | [1] | ||
Operating Revenues | [2] | (1,234) | (1,483) | (1,492) | ||
Public Service Electric and Gas Company | ||||||
Operating Revenues | 6,608 | 6,625 | 6,471 | |||
Accounts Receivable and Unbilled Revenues, Allowance for Credit Losses | 206 | |||||
Provision for Other Credit Losses | 175 | 87 | ||||
Accounts Receivable, Allowance for Credit Loss, Writeoff | (37) | (90) | ||||
Accounts Receivable, Allowance for Credit Loss, Recovery | 5 | 8 | ||||
Accounts Receivable, Allowance for Credit Loss | 60 | 63 | ||||
Public Service Electric and Gas Company | Cumulative Effect, Period of Adoption, Adjustment | ||||||
Accounts Receivable and Unbilled Revenues, Allowance for Credit Losses | $ 8 | |||||
Public Service Electric and Gas Company | Cumulative Effect, Period of Adoption, Adjusted Balance | ||||||
Accounts Receivable and Unbilled Revenues, Allowance for Credit Losses | [3] | $ 68 | ||||
Public Service Electric and Gas Company | ||||||
Revenue from Contract with Customer, Including Assessed Tax | 6,599 | 6,559 | 6,398 | |||
Revenues Unrelated to Contracts with Customers | 9 | 66 | 73 | [1] | ||
Operating Revenues | $ 6,608 | $ 6,625 | 6,471 | |||
Allowances percentage of accounts receivable | 14.00% | 6.00% | ||||
PSEG Power LLC | ||||||
Revenue from Contract with Customer, Including Assessed Tax | $ 3,147 | $ 3,666 | 3,899 | |||
Revenues Unrelated to Contracts with Customers | 487 | 719 | 247 | [1] | ||
Operating Revenues | 3,634 | 4,385 | 4,146 | |||
Revenue, remaining performance obligation, amount | 146 | |||||
Other [Member] | ||||||
Revenue from Contract with Customer, Including Assessed Tax | 587 | 566 | 532 | |||
Revenues Unrelated to Contracts with Customers | 8 | (17) | 39 | [1] | ||
Operating Revenues | 595 | 549 | 571 | |||
LIPA OSA contract fixed component [Member] | Other [Member] | ||||||
Revenue, remaining performance obligation, amount | 68 | |||||
Electric Distribution Contracts [Member] | ||||||
Revenue from Contract with Customer, Including Assessed Tax | 3,130 | 3,224 | 3,131 | |||
Electric Distribution Contracts [Member] | Intersegment Eliminations [Member] | ||||||
Revenue from Contract with Customer, Including Assessed Tax | 0 | 0 | 0 | |||
Electric Distribution Contracts [Member] | Public Service Electric and Gas Company | ||||||
Revenue from Contract with Customer, Including Assessed Tax | 3,130 | 3,224 | 3,131 | |||
Electric Distribution Contracts [Member] | PSEG Power LLC | ||||||
Revenue from Contract with Customer, Including Assessed Tax | 0 | 0 | 0 | |||
Electric Distribution Contracts [Member] | Other [Member] | ||||||
Revenue from Contract with Customer, Including Assessed Tax | 0 | 0 | 0 | |||
Gas Distribution Contracts [Member] | ||||||
Revenue from Contract with Customer, Including Assessed Tax | 1,634 | 1,855 | 1,738 | |||
Gas Distribution Contracts [Member] | Intersegment Eliminations [Member] | ||||||
Revenue from Contract with Customer, Including Assessed Tax | (12) | (15) | (18) | |||
Gas Distribution Contracts [Member] | Public Service Electric and Gas Company | ||||||
Revenue from Contract with Customer, Including Assessed Tax | 1,646 | 1,870 | 1,756 | |||
Gas Distribution Contracts [Member] | PSEG Power LLC | ||||||
Revenue from Contract with Customer, Including Assessed Tax | 0 | 0 | 0 | |||
Gas Distribution Contracts [Member] | Other [Member] | ||||||
Revenue from Contract with Customer, Including Assessed Tax | 0 | 0 | 0 | |||
Transmission [Member] | ||||||
Revenue from Contract with Customer, Including Assessed Tax | 1,485 | 1,181 | 1,236 | |||
Transmission [Member] | Intersegment Eliminations [Member] | ||||||
Revenue from Contract with Customer, Including Assessed Tax | 0 | 0 | 0 | |||
Transmission [Member] | Public Service Electric and Gas Company | ||||||
Revenue from Contract with Customer, Including Assessed Tax | 1,485 | 1,181 | 1,236 | |||
Transmission [Member] | PSEG Power LLC | ||||||
Revenue from Contract with Customer, Including Assessed Tax | 0 | 0 | 0 | |||
Transmission [Member] | Other [Member] | ||||||
Revenue from Contract with Customer, Including Assessed Tax | 0 | 0 | 0 | |||
Other Contract Revenues [Member] | ||||||
Revenue from Contract with Customer, Including Assessed Tax | [4] | 966 | 891 | 847 | ||
Other Contract Revenues [Member] | Intersegment Eliminations [Member] | ||||||
Revenue from Contract with Customer, Including Assessed Tax | (4) | (5) | (4) | [4] | ||
Other Contract Revenues [Member] | Public Service Electric and Gas Company | ||||||
Revenue from Contract with Customer, Including Assessed Tax | 338 | 284 | 275 | [4] | ||
Other Contract Revenues [Member] | PSEG Power LLC | ||||||
Revenue from Contract with Customer, Including Assessed Tax | 45 | 46 | 44 | [4] | ||
Other Contract Revenues [Member] | Other [Member] | ||||||
Revenue from Contract with Customer, Including Assessed Tax | 587 | 566 | 532 | [4] | ||
ISO New England [Member] | Electricity and Related Products [Member] | ||||||
Revenue from Contract with Customer, Including Assessed Tax | 126 | 137 | 92 | |||
ISO New England [Member] | Electricity and Related Products [Member] | Intersegment Eliminations [Member] | ||||||
Revenue from Contract with Customer, Including Assessed Tax | 0 | 0 | 0 | |||
ISO New England [Member] | Electricity and Related Products [Member] | Public Service Electric and Gas Company | ||||||
Revenue from Contract with Customer, Including Assessed Tax | 0 | 0 | 0 | |||
ISO New England [Member] | Electricity and Related Products [Member] | PSEG Power LLC | ||||||
Revenue from Contract with Customer, Including Assessed Tax | 126 | 137 | 92 | |||
ISO New England [Member] | Electricity and Related Products [Member] | Other [Member] | ||||||
Revenue from Contract with Customer, Including Assessed Tax | 0 | 0 | 0 | |||
NY ISO [Member] | Electricity and Related Products [Member] | ||||||
Revenue from Contract with Customer, Including Assessed Tax | 124 | 143 | 209 | |||
NY ISO [Member] | Electricity and Related Products [Member] | Intersegment Eliminations [Member] | ||||||
Revenue from Contract with Customer, Including Assessed Tax | 0 | 0 | 0 | |||
NY ISO [Member] | Electricity and Related Products [Member] | Public Service Electric and Gas Company | ||||||
Revenue from Contract with Customer, Including Assessed Tax | 0 | 0 | 0 | |||
NY ISO [Member] | Electricity and Related Products [Member] | PSEG Power LLC | ||||||
Revenue from Contract with Customer, Including Assessed Tax | 124 | 143 | 209 | |||
NY ISO [Member] | Electricity and Related Products [Member] | Other [Member] | ||||||
Revenue from Contract with Customer, Including Assessed Tax | 0 | 0 | 0 | |||
Third Party Sales [Member] | Natural Gas [Member] | ||||||
Revenue from Contract with Customer, Including Assessed Tax | 83 | 92 | 151 | |||
Third Party Sales [Member] | Natural Gas [Member] | Intersegment Eliminations [Member] | ||||||
Revenue from Contract with Customer, Including Assessed Tax | 0 | 0 | 0 | |||
Third Party Sales [Member] | Natural Gas [Member] | Public Service Electric and Gas Company | ||||||
Revenue from Contract with Customer, Including Assessed Tax | 0 | 0 | 0 | |||
Third Party Sales [Member] | Natural Gas [Member] | PSEG Power LLC | ||||||
Revenue from Contract with Customer, Including Assessed Tax | 83 | 92 | 151 | |||
Third Party Sales [Member] | Natural Gas [Member] | Other [Member] | ||||||
Revenue from Contract with Customer, Including Assessed Tax | 0 | 0 | 0 | |||
Third Party Sales [Member] | PJM [Member] | Electricity and Related Products [Member] | ||||||
Revenue from Contract with Customer, Including Assessed Tax | 1,551 | 1,785 | 1,933 | |||
Third Party Sales [Member] | PJM [Member] | Electricity and Related Products [Member] | Intersegment Eliminations [Member] | ||||||
Revenue from Contract with Customer, Including Assessed Tax | 0 | 0 | 0 | |||
Third Party Sales [Member] | PJM [Member] | Electricity and Related Products [Member] | Public Service Electric and Gas Company | ||||||
Revenue from Contract with Customer, Including Assessed Tax | 0 | 0 | 0 | |||
Third Party Sales [Member] | PJM [Member] | Electricity and Related Products [Member] | PSEG Power LLC | ||||||
Revenue from Contract with Customer, Including Assessed Tax | 1,551 | 1,785 | 1,933 | |||
Third Party Sales [Member] | PJM [Member] | Electricity and Related Products [Member] | Other [Member] | ||||||
Revenue from Contract with Customer, Including Assessed Tax | 0 | 0 | 0 | |||
Sales to Affiliates [Member] | Natural Gas [Member] | ||||||
Revenue from Contract with Customer, Including Assessed Tax | 0 | 0 | 0 | |||
Sales to Affiliates [Member] | Natural Gas [Member] | Intersegment Eliminations [Member] | ||||||
Revenue from Contract with Customer, Including Assessed Tax | (771) | (927) | (861) | |||
Sales to Affiliates [Member] | Natural Gas [Member] | Public Service Electric and Gas Company | ||||||
Revenue from Contract with Customer, Including Assessed Tax | 0 | 0 | 0 | |||
Sales to Affiliates [Member] | Natural Gas [Member] | PSEG Power LLC | ||||||
Revenue from Contract with Customer, Including Assessed Tax | 771 | 927 | 861 | |||
Sales to Affiliates [Member] | Natural Gas [Member] | Other [Member] | ||||||
Revenue from Contract with Customer, Including Assessed Tax | 0 | 0 | 0 | |||
Sales to Affiliates [Member] | PJM [Member] | Electricity and Related Products [Member] | ||||||
Revenue from Contract with Customer, Including Assessed Tax | 0 | 0 | 0 | |||
Sales to Affiliates [Member] | PJM [Member] | Electricity and Related Products [Member] | Intersegment Eliminations [Member] | ||||||
Revenue from Contract with Customer, Including Assessed Tax | (447) | (536) | (609) | |||
Sales to Affiliates [Member] | PJM [Member] | Electricity and Related Products [Member] | Public Service Electric and Gas Company | ||||||
Revenue from Contract with Customer, Including Assessed Tax | 0 | 0 | 0 | |||
Sales to Affiliates [Member] | PJM [Member] | Electricity and Related Products [Member] | PSEG Power LLC | ||||||
Revenue from Contract with Customer, Including Assessed Tax | 447 | 536 | 609 | |||
Sales to Affiliates [Member] | PJM [Member] | Electricity and Related Products [Member] | Other [Member] | ||||||
Revenue from Contract with Customer, Including Assessed Tax | $ 0 | $ 0 | $ 0 | |||
June 2019 to May 2020 [Member] | ISO New England [Member] | PSEG Power LLC | ||||||
Dollars Per Megawatt-Day | $ / mwd | 231 | |||||
June 2020 to May 2021 [Member] | PJM [Member] | PSEG Power LLC | ||||||
Dollars Per Megawatt-Day | $ / mwd | 167 | |||||
Load (MW) | MW | 7,600 | |||||
June 2020 to May 2021 [Member] | ISO New England [Member] | PSEG Power LLC | ||||||
Dollars Per Megawatt-Day | $ / mwd | 195 | |||||
Load (MW) | MW | 1,330 | |||||
June 2021 to May 2022 [Member] | PJM [Member] | PSEG Power LLC | ||||||
Dollars Per Megawatt-Day | $ / mwd | 180 | |||||
Load (MW) | MW | 7,000 | |||||
June 2021 to May 2022 [Member] | ISO New England [Member] | PSEG Power LLC | ||||||
Dollars Per Megawatt-Day | $ / mwd | 192 | |||||
Load (MW) | MW | 950 | |||||
June 2022 to May 2023 [Member] | ISO New England [Member] | PSEG Power LLC | ||||||
Dollars Per Megawatt-Day | $ / mwd | 179 | |||||
Load (MW) | MW | 950 | |||||
June 2023 to May 2024 [Member] | ISO New England [Member] | PSEG Power LLC | ||||||
Dollars Per Megawatt-Day | $ / mwd | 152 | |||||
Load (MW) | MW | 930 | |||||
June 2024 to May 2025 [Member] | ISO New England [Member] | PSEG Power LLC | ||||||
Dollars Per Megawatt-Day | $ / mwd | 231 | |||||
Load (MW) | MW | 480 | |||||
June 2025 to May 2026 [Member] | ISO New England [Member] | PSEG Power LLC | ||||||
Dollars Per Megawatt-Day | $ / mwd | 231 | |||||
Load (MW) | MW | 480 | |||||
[1] | Includes primarily alternative revenues at PSE&G, derivative contracts and lease contracts at PSEG Power, and lease contracts in Other. For the years ended December 31, 2020, 2019 and 2018, Other includes losses of $26 million, $58 million and $8 million, respectively, related to Energy Holdings’ investments in leases. For additional information, see Note 9. Long-Term Investments. | |||||
[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 26. Related-Party Transactions. | |||||
[3] | Includes an $8 million pre-tax increase upon adoption of ASU 2016-13. | |||||
[4] | Includes primarily revenues from appliance repair services at PSE&G, solar power projects and energy management and fuel service contracts with LIPA at PSEG Power, and PSEG LI’s OSA with LIPA in Other. |
Early Plant Retirements Early_2
Early Plant Retirements Early Plant Retirements (Details) - PSEG Power LLC - USD ($) | 3 Months Ended | 12 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2020 | Dec. 31, 2018 | |
Restructuring Cost and Reserve [Line Items] | |||
ZEC Charge per kwh | $ 0.004 | ||
ZEC Charge per MWh | 10 | ||
Gain (Loss) on Asset Disposition | $ (400,000,000) | 122,000,000 | $ (54,000,000) |
Other Production-Solar [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Carrying value of assets | 560,000,000 | ||
Fossil Production [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Carrying value of assets | $ 4,500,000,000 |
Variable Interest Entities (V_2
Variable Interest Entities (VIEs) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Variable Interest Entity [Line Items] | |||
Operating Revenues | $ 9,603 | $ 10,076 | $ 9,696 |
Operation and Maintenance | 3,115 | 3,111 | 3,069 |
Long Island ServCo [Member] | |||
Variable Interest Entity [Line Items] | |||
Operating Revenues | 520 | 490 | 458 |
Operation and Maintenance | $ 520 | $ 490 | $ 458 |
Property, Plant And Equipment_3
Property, Plant And Equipment And Jointly-Owned Facilities (Schedule Of Property, Plant And Equipment) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Public Utility, Property, Plant and Equipment [Line Items] | ||
Total Transmission and Distribution | $ 35,220 | $ 32,839 |
Total Generation | 12,442 | 12,269 |
Other | 907 | 836 |
Total | 48,569 | 45,944 |
Public Service Electric and Gas Company | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Total Transmission and Distribution | 35,220 | 32,839 |
Total Generation | 658 | 663 |
Other | 422 | 398 |
Total | 36,300 | 33,900 |
PSEG Power LLC | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Total Transmission and Distribution | 0 | 0 |
Total Generation | 11,784 | 11,606 |
Other | 88 | 93 |
Total | 11,872 | 11,699 |
Other [Member] | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Total Transmission and Distribution | 0 | 0 |
Total Generation | 0 | 0 |
Other | 397 | 345 |
Total | 397 | 345 |
Electric Transmission [Member] | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Total Transmission and Distribution | 14,075 | 12,908 |
Electric Transmission [Member] | Public Service Electric and Gas Company | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Total Transmission and Distribution | 14,075 | 12,908 |
Electric Transmission [Member] | PSEG Power LLC | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Total Transmission and Distribution | 0 | 0 |
Electric Transmission [Member] | Other [Member] | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Total Transmission and Distribution | 0 | 0 |
Electric Distribution [Member] | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Total Transmission and Distribution | 9,622 | 9,255 |
Electric Distribution [Member] | Public Service Electric and Gas Company | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Total Transmission and Distribution | 9,622 | 9,255 |
Electric Distribution [Member] | PSEG Power LLC | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Total Transmission and Distribution | 0 | 0 |
Electric Distribution [Member] | Other [Member] | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Total Transmission and Distribution | 0 | 0 |
Gas Distribution [Member] | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Total Transmission and Distribution | 9,081 | 8,430 |
Gas Distribution [Member] | Public Service Electric and Gas Company | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Total Transmission and Distribution | 9,081 | 8,430 |
Gas Distribution [Member] | PSEG Power LLC | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Total Transmission and Distribution | 0 | 0 |
Gas Distribution [Member] | Other [Member] | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Total Transmission and Distribution | 0 | 0 |
Construction Work In Progress [Member] | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Total Transmission and Distribution | 1,783 | 1,607 |
Total Generation | 248 | 277 |
Construction Work In Progress [Member] | Public Service Electric and Gas Company | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Total Transmission and Distribution | 1,783 | 1,607 |
Total Generation | 0 | 0 |
Construction Work In Progress [Member] | PSEG Power LLC | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Total Transmission and Distribution | 0 | 0 |
Total Generation | 248 | 277 |
Construction Work In Progress [Member] | Other [Member] | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Total Transmission and Distribution | 0 | 0 |
Total Generation | 0 | 0 |
Other Plant [Member] | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Total Transmission and Distribution | 659 | 639 |
Other Plant [Member] | Public Service Electric and Gas Company | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Total Transmission and Distribution | 659 | 639 |
Other Plant [Member] | PSEG Power LLC | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Total Transmission and Distribution | 0 | 0 |
Other Plant [Member] | Other [Member] | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Total Transmission and Distribution | 0 | 0 |
Fossil Production [Member] | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Total Generation | 6,581 | 6,570 |
Fossil Production [Member] | Public Service Electric and Gas Company | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Total Generation | 0 | 0 |
Fossil Production [Member] | PSEG Power LLC | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Total Generation | 6,581 | 6,570 |
Fossil Production [Member] | Other [Member] | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Total Generation | 0 | 0 |
Nuclear Production [Member] | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Total Generation | 3,296 | 3,087 |
Nuclear Production [Member] | Public Service Electric and Gas Company | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Total Generation | 0 | 0 |
Nuclear Production [Member] | PSEG Power LLC | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Total Generation | 3,296 | 3,087 |
Nuclear Production [Member] | Other [Member] | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Total Generation | 0 | 0 |
Nuclear Fuel In Service [Member] | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Total Generation | 748 | 761 |
Nuclear Fuel In Service [Member] | Public Service Electric and Gas Company | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Total Generation | 0 | 0 |
Nuclear Fuel In Service [Member] | PSEG Power LLC | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Total Generation | 748 | 761 |
Nuclear Fuel In Service [Member] | Other [Member] | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Total Generation | 0 | 0 |
Other Production-Solar [Member] | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Total Generation | 1,569 | 1,574 |
Other Production-Solar [Member] | Public Service Electric and Gas Company | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Total Generation | 658 | 663 |
Other Production-Solar [Member] | PSEG Power LLC | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Total Generation | 911 | 911 |
Other Production-Solar [Member] | Other [Member] | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Total Generation | $ 0 | $ 0 |
Property, Plant And Equipment_4
Property, Plant And Equipment And Jointly-Owned Facilities (Schedule Of Jointly-Owned Facilities) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Peach Bottom [Member] | PSEG Power LLC | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Ownership Interest | 50.00% | |
Plant | $ 1,405 | $ 1,340 |
Accumulated Depreciation | $ 455 | 435 |
Salem [Member] | PSEG Power LLC | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Ownership Interest | 57.00% | |
Plant | $ 1,321 | 1,256 |
Accumulated Depreciation | 387 | 384 |
Nuclear Support Facilities [Member] | PSEG Power LLC | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Plant | 226 | 247 |
Accumulated Depreciation | $ 97 | 107 |
Yards Creek [Member] | PSEG Power LLC | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Ownership Interest | 50.00% | |
Plant | $ 0 | 55 |
Accumulated Depreciation | $ 0 | 27 |
Merrill Creek Reservoir [Member] | PSEG Power LLC | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Ownership Interest | 14.00% | |
Plant | $ 1 | 1 |
Accumulated Depreciation | 0 | 0 |
Transmission Facilities [Member] | Public Service Electric and Gas Company | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Plant | 161 | 161 |
Accumulated Depreciation | $ 63 | $ 60 |
Regulatory Assets And Liabili_3
Regulatory Assets And Liabilities (Schedule Of Regulatory Assets and Liabilities) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2018 | |
Regulatory Assets And Liabilities [Line Items] | |||
Regulatory Assets, Current | $ 369 | $ 351 | |
Regulatory Assets, Noncurrent | 3,872 | 3,677 | |
Regulatory Liability, Current | 294 | 234 | |
Regulatory Liabilities, Noncurrent | 2,707 | 3,002 | |
Public Service Electric and Gas Company | |||
Regulatory Assets And Liabilities [Line Items] | |||
Regulatory Assets, Current | 369 | 351 | |
Regulatory Assets, Noncurrent | 3,872 | 3,677 | |
Total Regulatory Assets | 4,241 | 4,028 | |
Regulatory Liability, Current | 294 | 234 | |
Regulatory Liabilities, Noncurrent | 2,707 | 3,002 | |
Total Regulatory Liabilities | 3,001 | 3,236 | |
Flowback of tax benefits | 31 | 58 | |
Tax Adjustment Credit [Member] | Public Service Electric and Gas Company | |||
Regulatory Assets And Liabilities [Line Items] | |||
Regulatory Liability, Current | 5 | 12 | |
Excess Deferred Income Taxes [Member] | Public Service Electric and Gas Company | |||
Regulatory Assets And Liabilities [Line Items] | |||
Regulatory Liability, Current | 223 | 193 | |
Regulatory Liabilities, Noncurrent | 2,670 | 2,955 | |
Weather Normalization Clause [Member] | Public Service Electric and Gas Company | |||
Regulatory Assets And Liabilities [Line Items] | |||
Regulatory Liability, Current | 2 | 15 | |
Electric and Gas Cost Of Removal [Member] | Public Service Electric and Gas Company | |||
Regulatory Assets And Liabilities [Line Items] | |||
Regulatory Liabilities, Noncurrent | 37 | 47 | |
Other [Member] | Public Service Electric and Gas Company | |||
Regulatory Assets And Liabilities [Line Items] | |||
Regulatory Liability, Current | 27 | 4 | |
ZEC Liability | Public Service Electric and Gas Company | |||
Regulatory Assets And Liabilities [Line Items] | |||
Regulatory Liability, Current | 17 | 10 | |
Tax Adjustment Credit [Member] | Public Service Electric and Gas Company | |||
Regulatory Assets And Liabilities [Line Items] | |||
Total Regulatory Assets | $ 581 | ||
Total Regulatory Liabilities | $ 581 | ||
New Jersey Clean Energy Program [Member] | Public Service Electric and Gas Company | |||
Regulatory Assets And Liabilities [Line Items] | |||
Regulatory Assets, Current | 143 | 143 | |
Green Program Recovery Charge [Member] | Public Service Electric and Gas Company | |||
Regulatory Assets And Liabilities [Line Items] | |||
Regulatory Assets, Noncurrent | 139 | 118 | |
Pension and Other Postretirement Benefit Costs [Member] | Public Service Electric and Gas Company | |||
Regulatory Assets And Liabilities [Line Items] | |||
Regulatory Assets, Noncurrent | 1,489 | 1,284 | |
Deferred Income Taxes [Member] | Public Service Electric and Gas Company | |||
Regulatory Assets And Liabilities [Line Items] | |||
Regulatory Assets, Noncurrent | 1,014 | 966 | |
Manufactured Gas Plant (MGP) Remediation Costs [Member] | Public Service Electric and Gas Company | |||
Regulatory Assets And Liabilities [Line Items] | |||
Regulatory Assets, Noncurrent | 320 | 357 | |
Base Rate Case [Member] | Public Service Electric and Gas Company | |||
Regulatory Assets And Liabilities [Line Items] | |||
Regulatory Assets, Current | 56 | 56 | |
Regulatory Assets, Noncurrent | 103 | 159 | |
Remediation Adjustment Charge (Other SBC) [Member] | Public Service Electric and Gas Company | |||
Regulatory Assets And Liabilities [Line Items] | |||
Regulatory Assets, Noncurrent | 134 | 158 | |
Conditional Asset Retirement Obligation [Member] | Public Service Electric and Gas Company | |||
Regulatory Assets And Liabilities [Line Items] | |||
Regulatory Assets, Noncurrent | 184 | 172 | |
Electric and Gas Cost Of Removal [Member] | Public Service Electric and Gas Company | |||
Regulatory Assets And Liabilities [Line Items] | |||
Regulatory Assets, Noncurrent | 189 | 216 | |
Unamortized Loss On Reacquired Debt And Debt Expense [Member] | Public Service Electric and Gas Company | |||
Regulatory Assets And Liabilities [Line Items] | |||
Regulatory Assets, Noncurrent | 36 | 42 | |
Other [Member] | Public Service Electric and Gas Company | |||
Regulatory Assets And Liabilities [Line Items] | |||
Regulatory Assets, Current | 5 | 13 | |
Regulatory Assets, Noncurrent | 88 | 166 | |
Underrecovered Electric Costs Basic Generation Service [Member] | Public Service Electric and Gas Company | |||
Regulatory Assets And Liabilities [Line Items] | |||
Regulatory Assets, Current | 60 | 57 | |
Societal Benefits Charges Sbc [Member] | Public Service Electric and Gas Company | |||
Regulatory Assets And Liabilities [Line Items] | |||
Regulatory Assets, Current | 82 | 30 | |
Formula Rate True up | Public Service Electric and Gas Company | |||
Regulatory Assets And Liabilities [Line Items] | |||
Regulatory Assets, Current | 23 | 52 | |
Deferred Storm Costs | Public Service Electric and Gas Company | |||
Regulatory Assets And Liabilities [Line Items] | |||
Regulatory Assets, Noncurrent | 99 | 12 | |
COVID-19 Deferral | Public Service Electric and Gas Company | |||
Regulatory Assets And Liabilities [Line Items] | |||
Regulatory Assets, Noncurrent | 51 | 0 | |
Gas Costs - BGSS | Public Service Electric and Gas Company | |||
Regulatory Assets And Liabilities [Line Items] | |||
Regulatory Assets, Noncurrent | 26 | 27 | |
Regulatory Liability, Current | $ 20 | 0 | |
Transmission related over remaining useful life [Member] | Public Service Electric and Gas Company | |||
Regulatory Assets And Liabilities [Line Items] | |||
Excess Deferred income taxes to be refunded | $ 940 |
Regulatory Assets And Liabili_4
Regulatory Assets And Liabilities (Significant Orders and Pending Filings) (Details) $ in Millions | 1 Months Ended | 12 Months Ended | |||||||||
Jan. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Nov. 30, 2020USD ($) | Oct. 31, 2020USD ($) | Sep. 30, 2020USD ($) | Aug. 31, 2020USD ($) | Jul. 31, 2020USD ($) | Jun. 30, 2020USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Sep. 30, 2018USD ($) | |
Regulatory Assets And Liabilities [Line Items] | |||||||||||
Maximum U.S. Corporate Income Tax Rate | 21.00% | ||||||||||
Regulatory Assets | $ 3,872 | $ 3,872 | $ 3,677 | ||||||||
Public Service Electric and Gas Company | |||||||||||
Regulatory Assets And Liabilities [Line Items] | |||||||||||
Proposed BGSS rate per therm | 0.32 | 0.32 | |||||||||
Regulatory Assets | $ 4,241 | $ 4,241 | 4,028 | ||||||||
Regulatory Liabilities | 3,001 | 3,001 | 3,236 | ||||||||
Flowback of tax benefits | 31 | 58 | |||||||||
Regulatory Assets | 3,872 | 3,872 | 3,677 | ||||||||
Public Service Electric and Gas Company | Weather Normalization Clause [Member] | |||||||||||
Regulatory Assets And Liabilities [Line Items] | |||||||||||
Public Utilities, Approved Rate Increase (Decrease), Amount | $ (2) | $ 10 | |||||||||
Public Service Electric and Gas Company | ZEC Liability | |||||||||||
Regulatory Assets And Liabilities [Line Items] | |||||||||||
Public Utilities, Approved Rate Increase (Decrease), Amount | (6.2) | ||||||||||
ZEC purchases | 154 | ||||||||||
Public Service Electric and Gas Company | ZEC overcollection for May 2020 year end [Member] | |||||||||||
Regulatory Assets And Liabilities [Line Items] | |||||||||||
Public Utilities, Approved Rate Increase (Decrease), Amount | (6) | ||||||||||
Public Service Electric and Gas Company | ZEC overcollection for May 2019 year end [Member] | |||||||||||
Regulatory Assets And Liabilities [Line Items] | |||||||||||
Public Utilities, Approved Rate Increase (Decrease), Amount | (0.2) | ||||||||||
Tax Adjustment Credits Electric Distribution [Member] | Public Service Electric and Gas Company | |||||||||||
Regulatory Assets And Liabilities [Line Items] | |||||||||||
Public Utilities, Approved Rate Increase (Decrease), Amount | $ (25) | ||||||||||
Flowback of unprotected tax benefits total | 50 | ||||||||||
Tax Adjustment Credits Gas Distribution [Member] | Public Service Electric and Gas Company | |||||||||||
Regulatory Assets And Liabilities [Line Items] | |||||||||||
Public Utilities, Approved Rate Increase (Decrease), Amount | (29) | ||||||||||
Flowback of unprotected tax benefits total | 46 | ||||||||||
Remediation Adjustment Clause [Member] | Public Service Electric and Gas Company | |||||||||||
Regulatory Assets And Liabilities [Line Items] | |||||||||||
Public Utilities, Approved Rate Increase (Decrease), Amount | $ 53 | ||||||||||
Public Utilities, Requested Rate Increase (Decrease), Amount | (35) | ||||||||||
Transmission related over remaining useful life [Member] | Public Service Electric and Gas Company | |||||||||||
Regulatory Assets And Liabilities [Line Items] | |||||||||||
Excess Deferred income taxes to be refunded | 940 | ||||||||||
unprotected distribution related over remaining useful life [Member] | Public Service Electric and Gas Company | |||||||||||
Regulatory Assets And Liabilities [Line Items] | |||||||||||
Excess Deferred income taxes to be refunded | 520 | ||||||||||
protected distribution related over remaining useful life [Member] | Public Service Electric and Gas Company | |||||||||||
Regulatory Assets And Liabilities [Line Items] | |||||||||||
Excess Deferred income taxes to be refunded | 933 | ||||||||||
distributed related repair deductions [Member] | Public Service Electric and Gas Company | |||||||||||
Regulatory Assets And Liabilities [Line Items] | |||||||||||
Excess Deferred income taxes to be refunded | 500 | ||||||||||
Transition Incentive Program [Member] | Public Service Electric and Gas Company | |||||||||||
Regulatory Assets And Liabilities [Line Items] | |||||||||||
Public Utilities, Approved Rate Increase (Decrease), Amount | $ 23 | ||||||||||
Unprotected Transmission related [Member] | Public Service Electric and Gas Company | |||||||||||
Regulatory Assets And Liabilities [Line Items] | |||||||||||
Flowback of unprotected tax benefits total | 38 | ||||||||||
Clean Energy Future - Energy Efficiency | Public Service Electric and Gas Company | |||||||||||
Regulatory Assets And Liabilities [Line Items] | |||||||||||
Public Utilities, approved investment | $ 1,000 | ||||||||||
Gas Societal Benefit Clause | Public Service Electric and Gas Company | |||||||||||
Regulatory Assets And Liabilities [Line Items] | |||||||||||
Public Utilities, Requested Rate Increase (Decrease), Amount | 18 | ||||||||||
Electric Societal Benefits Clause | Public Service Electric and Gas Company | |||||||||||
Regulatory Assets And Liabilities [Line Items] | |||||||||||
Public Utilities, Requested Rate Increase (Decrease), Amount | (76) | ||||||||||
Subsequent Event [Member] | Tax Adjustment Credits Electric Distribution [Member] | Public Service Electric and Gas Company | |||||||||||
Regulatory Assets And Liabilities [Line Items] | |||||||||||
Public Utilities, Requested Rate Increase (Decrease), Amount | $ 26 | ||||||||||
Subsequent Event [Member] | Tax Adjustment Credits Gas Distribution [Member] | Public Service Electric and Gas Company | |||||||||||
Regulatory Assets And Liabilities [Line Items] | |||||||||||
Public Utilities, Requested Rate Increase (Decrease), Amount | (48) | ||||||||||
Subsequent Event [Member] | Clean Energy Future - Energy Cloud [Member] | Public Service Electric and Gas Company | |||||||||||
Regulatory Assets And Liabilities [Line Items] | |||||||||||
Public Utilities, approved investment | 700 | ||||||||||
Subsequent Event [Member] | Clean Energy Future - Electric Vehicles [Member] | Public Service Electric and Gas Company | |||||||||||
Regulatory Assets And Liabilities [Line Items] | |||||||||||
Public Utilities, approved investment | 166 | ||||||||||
Solar or EE Recovery Charge (RRC) [Member] | Public Service Electric and Gas Company | |||||||||||
Regulatory Assets And Liabilities [Line Items] | |||||||||||
Regulatory Assets | 139 | 139 | 118 | ||||||||
Tax Adjustment Credit [Member] | Public Service Electric and Gas Company | |||||||||||
Regulatory Assets And Liabilities [Line Items] | |||||||||||
Regulatory Assets | $ 581 | ||||||||||
Regulatory Liabilities | $ 581 | ||||||||||
COVID-19 Deferral | Public Service Electric and Gas Company | |||||||||||
Regulatory Assets And Liabilities [Line Items] | |||||||||||
Regulatory Assets | 51 | 51 | $ 0 | ||||||||
COVID-19 Deferral - Bad Debt portion [Member] | Public Service Electric and Gas Company | |||||||||||
Regulatory Assets And Liabilities [Line Items] | |||||||||||
Regulatory Assets | 29 | $ 29 | |||||||||
Energy Strong II [Member] | Public Service Electric and Gas Company | |||||||||||
Regulatory Assets And Liabilities [Line Items] | |||||||||||
Public Utilities, Requested Rate Increase (Decrease), Amount | (13) | ||||||||||
Gas System Modernization Program II [Member] | Public Service Electric and Gas Company | |||||||||||
Regulatory Assets And Liabilities [Line Items] | |||||||||||
Public Utilities, Approved Rate Increase (Decrease), Amount | $ 20 | $ 18 | |||||||||
Public Utilities, Requested Rate Increase (Decrease), Amount | $ (26) | ||||||||||
Green Program Recovery Gas portion [Member] | Subsequent Event [Member] | Public Service Electric and Gas Company | |||||||||||
Regulatory Assets And Liabilities [Line Items] | |||||||||||
Public Utilities, Approved Rate Increase (Decrease), Amount | 20 | ||||||||||
Formula Rate True up | Public Service Electric and Gas Company | |||||||||||
Regulatory Assets And Liabilities [Line Items] | |||||||||||
Public Utilities, Approved Rate Increase (Decrease), Amount | $ 119 | $ 24 | |||||||||
Green Program Recovery electric portion [Member] | Subsequent Event [Member] | Public Service Electric and Gas Company | |||||||||||
Regulatory Assets And Liabilities [Line Items] | |||||||||||
Public Utilities, Approved Rate Increase (Decrease), Amount | $ 67 |
Leases (Details)
Leases (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2020USD ($)renewals | Dec. 31, 2019USD ($) | |
Lessee, Lease, Description [Line Items] | ||
Lessor leases carrying value | $ 297 | |
Public Service Electric and Gas Company | ||
Lessee, Lease, Description [Line Items] | ||
Number of lease renewal terms | 5 | |
Operating lease liabilities, current | $ 13 | $ 12 |
PSEG Power LLC | ||
Lessee, Lease, Description [Line Items] | ||
Number of lease renewal terms | renewals | 7 | |
Operating lease liabilities, current | $ 11 | 10 |
Lessor leases carrying value | $ 376 | |
PSEG Power LLC | Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Lease renewal term | 15 years | |
PSEG Power LLC | Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Lease renewal term | 20 years | |
PSEG | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease liabilities, current | $ 34 | $ 33 |
Services | Subsidiaries | ||
Lessee, Lease, Description [Line Items] | ||
Number of lease renewal terms | 2 | |
Energy Holdings | Subsidiaries | ||
Lessee, Lease, Description [Line Items] | ||
Lessor leases carrying value | $ 83 |
Leases Operating Lease Costs (D
Leases Operating Lease Costs (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Operating Lease Costs | ||
Long-term Lease Costs | $ 54 | $ 52 |
Short-term Lease Costs | 45 | 24 |
Variable Lease Costs | 31 | 22 |
Total Operating Lease Costs | 130 | 98 |
Cash Paid for Amounts Included in the Measurement of Operating Lease Liabilities | $ 45 | $ 42 |
Weighted Average Remaining Lease Term in Years | 11 years | 12 years |
Weighted Average Discount Rate | 4.00% | 4.10% |
Public Service Electric and Gas Company | ||
Operating Lease Costs | ||
Long-term Lease Costs | $ 26 | $ 24 |
Short-term Lease Costs | 38 | 14 |
Variable Lease Costs | 2 | 2 |
Total Operating Lease Costs | 66 | 40 |
Cash Paid for Amounts Included in the Measurement of Operating Lease Liabilities | $ 17 | $ 16 |
Weighted Average Remaining Lease Term in Years | 12 years | 13 years |
Weighted Average Discount Rate | 3.50% | 3.60% |
PSEG Power LLC | ||
Operating Lease Costs | ||
Long-term Lease Costs | $ 14 | $ 13 |
Short-term Lease Costs | 7 | 10 |
Variable Lease Costs | 20 | 10 |
Total Operating Lease Costs | 41 | 33 |
Cash Paid for Amounts Included in the Measurement of Operating Lease Liabilities | $ 14 | $ 11 |
Weighted Average Remaining Lease Term in Years | 14 years | 14 years |
Weighted Average Discount Rate | 4.50% | 4.40% |
Other | ||
Operating Lease Costs | ||
Long-term Lease Costs | $ 14 | $ 15 |
Short-term Lease Costs | 0 | 0 |
Variable Lease Costs | 9 | 10 |
Total Operating Lease Costs | 23 | 25 |
Cash Paid for Amounts Included in the Measurement of Operating Lease Liabilities | $ 14 | $ 15 |
Weighted Average Remaining Lease Term in Years | 10 years | 10 years |
Weighted Average Discount Rate | 4.20% | 4.20% |
Leases Operating Lease Liabilit
Leases Operating Lease Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | ||
Lessee, Operating Lease, Liability, to be Paid, Year One | $ 45 | |
Lessee, Operating Lease, Liability, to be Paid, Year Two | 42 | |
Lessee, Operating Lease, Liability, to be Paid, Year Three | 34 | |
Lessee, Operating Lease, Liability, to be Paid, Year Four | 28 | |
Lessee, Operating Lease, Liability, to be Paid, Year Five | 26 | |
Lessee, Operating Lease, Liability, to be Paid, after Year Five | 191 | |
Total Minimum Lease Payments | 366 | $ 394 |
Public Service Electric and Gas Company | ||
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | ||
Lessee, Operating Lease, Liability, to be Paid, Year One | 16 | |
Lessee, Operating Lease, Liability, to be Paid, Year Two | 13 | |
Lessee, Operating Lease, Liability, to be Paid, Year Three | 11 | |
Lessee, Operating Lease, Liability, to be Paid, Year Four | 10 | |
Lessee, Operating Lease, Liability, to be Paid, Year Five | 8 | |
Lessee, Operating Lease, Liability, to be Paid, after Year Five | 69 | |
Total Minimum Lease Payments | 127 | 126 |
PSEG Power LLC | ||
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | ||
Lessee, Operating Lease, Liability, to be Paid, Year One | 14 | |
Lessee, Operating Lease, Liability, to be Paid, Year Two | 14 | |
Lessee, Operating Lease, Liability, to be Paid, Year Three | 8 | |
Lessee, Operating Lease, Liability, to be Paid, Year Four | 3 | |
Lessee, Operating Lease, Liability, to be Paid, Year Five | 3 | |
Lessee, Operating Lease, Liability, to be Paid, after Year Five | 47 | |
Total Minimum Lease Payments | 89 | 100 |
Other | ||
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | ||
Lessee, Operating Lease, Liability, to be Paid, Year One | 15 | |
Lessee, Operating Lease, Liability, to be Paid, Year Two | 15 | |
Lessee, Operating Lease, Liability, to be Paid, Year Three | 15 | |
Lessee, Operating Lease, Liability, to be Paid, Year Four | 15 | |
Lessee, Operating Lease, Liability, to be Paid, Year Five | 15 | |
Lessee, Operating Lease, Liability, to be Paid, after Year Five | 75 | |
Total Minimum Lease Payments | $ 150 | $ 168 |
Leases Reconciliation of Undisc
Leases Reconciliation of Undiscounted Cash Flows (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Lessee, Lease, Description [Line Items] | ||
Total Minimum Lease Payments | $ 366 | $ 394 |
Reconciling Amount due to Discount Rate | (80) | (88) |
Total Discounted Operating Lease Liabilities | 286 | 306 |
Public Service Electric and Gas Company | ||
Lessee, Lease, Description [Line Items] | ||
Total Minimum Lease Payments | 127 | 126 |
Reconciling Amount due to Discount Rate | (26) | (27) |
Total Discounted Operating Lease Liabilities | 101 | 99 |
PSEG Power LLC | ||
Lessee, Lease, Description [Line Items] | ||
Total Minimum Lease Payments | 89 | 100 |
Reconciling Amount due to Discount Rate | (27) | (28) |
Total Discounted Operating Lease Liabilities | 62 | 72 |
Other | ||
Lessee, Lease, Description [Line Items] | ||
Total Minimum Lease Payments | 150 | 168 |
Reconciling Amount due to Discount Rate | (27) | (33) |
Total Discounted Operating Lease Liabilities | $ 123 | $ 135 |
Leases Operating Lease Income (
Leases Operating Lease Income (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Operating Lease Income | ||
Fixed Lease Income | $ 15 | $ 22 |
Variable Lease Income | 26 | 23 |
Total Operating Lease Income | 41 | 45 |
PSEG Power LLC | ||
Operating Lease Income | ||
Fixed Lease Income | 0 | 0 |
Variable Lease Income | 26 | 23 |
Total Operating Lease Income | 26 | 23 |
Other [Member] | ||
Operating Lease Income | ||
Fixed Lease Income | 15 | 22 |
Variable Lease Income | 0 | 0 |
Total Operating Lease Income | $ 15 | $ 22 |
Leases Operating Lease Right-Of
Leases Operating Lease Right-Of-Use Assets (Details) $ in Millions | Dec. 31, 2020USD ($) |
Lessor, Operating Lease, Payments, Fiscal Year Maturity [Abstract] | |
Lessor, Operating Lease, Payment to be Received, Year One | $ 14 |
Lessor, Operating Lease, Payment to be Received, Year Two | 14 |
Lessor, Operating Lease, Payment to be Received, Year Three | 14 |
Lessor, Operating Lease, Payment to be Received, Year Four | 14 |
Lessor, Operating Lease, Payment to be Received, Year Five | 14 |
Lessor, Operating Lease, Payment to be Received, after Year Five | 227 |
Total Minimum Future Lease Receipts | $ 297 |
Long-Term Investments (Schedule
Long-Term Investments (Schedule Of Long Term Investments) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Long-Term Investments [Line Items] | ||||
Total Long-Term Investments | $ 536 | $ 812 | ||
Dividends in equity method investments | 15 | 15 | $ 16 | |
Provision for Loan and Lease Losses | 26 | 58 | $ 8 | |
PSEG Power LLC | ||||
Long-Term Investments [Line Items] | ||||
Total Long-Term Investments | 64 | 66 | ||
Public Service Electric and Gas Company | ||||
Long-Term Investments [Line Items] | ||||
Total Long-Term Investments | 222 | 248 | ||
Life Insurance And Supplemental Benefits [Member] | Public Service Electric and Gas Company | ||||
Long-Term Investments [Line Items] | ||||
Total Long-Term Investments | 100 | 111 | ||
Solar Loan Investment [Member] | Public Service Electric and Gas Company | ||||
Long-Term Investments [Line Items] | ||||
Total Long-Term Investments | 122 | 137 | ||
Partnerships And Corporate Joint Ventures [Member] | PSEG Power LLC | ||||
Long-Term Investments [Line Items] | ||||
Total Long-Term Investments | [1] | 64 | 66 | |
Partnerships And Corporate Joint Ventures [Member] | Equity Method Investments [Member] | Energy Holdings [Member] | ||||
Long-Term Investments [Line Items] | ||||
Total Long-Term Investments | 0 | 1 | ||
Leases [Member] | Energy Holdings [Member] | ||||
Long-Term Investments [Line Items] | ||||
Total Long-Term Investments | $ 250 | $ 497 | ||
[1] | During the three years ended December 31, 2020, 2019 and 2018, dividends from these investments were $15 million, $15 million and $16 million, respectively. |
Long-Term Investments (Schedu_2
Long-Term Investments (Schedule Of Net Investment In Leveraged Leases) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Schedule of Investments [Line Items] | |||
Provision for Loan and Lease Losses | $ 26 | $ 58 | $ 8 |
Assets Held for Sale | $ 0 | 30 | |
Maximum U.S. Corporate Income Tax Rate | 21.00% | ||
Lease Receivables (net of Non-Recourse Debt) | $ 299 | 498 | |
Estimated Residual Value of Leased Assets | 55 | 202 | |
Total Investment in Rental Receivables | 354 | 700 | |
Unearned and Deferred Income | (104) | (203) | |
Gross Investment in Leases | 250 | 497 | |
Deferred Tax Liabilities | (64) | (328) | |
Net Investments in Leases | $ 186 | $ 169 |
Long-Term Investments (Schedu_3
Long-Term Investments (Schedule Of Pre-Tax Income And Income Tax Effects Related To Investments In Leveraged Leases) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Long-term Investments [Abstract] | |||
Pre-Tax Income (Loss) from Leases | $ 18 | $ (39) | $ 17 |
Income Tax Expense (Benefit) on Income from Leases | $ 2 | $ (22) | $ 6 |
Long-Term Investments (Equity M
Long-Term Investments (Equity Method Investments) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | ||
Long-Term Investments [Line Items] | |||
Long-Term Investments | $ 536 | $ 812 | |
Kalaeloa [Member] | |||
Long-Term Investments [Line Items] | |||
Owned percentage | 50.00% | ||
PSEG Power LLC | |||
Long-Term Investments [Line Items] | |||
Long-Term Investments | $ 64 | 66 | |
Partnerships And Corporate Joint Ventures [Member] | PSEG Power LLC | |||
Long-Term Investments [Line Items] | |||
Long-Term Investments | [1] | 64 | 66 |
Partnerships And Corporate Joint Ventures [Member] | PSEG Power LLC | Kalaeloa [Member] | |||
Long-Term Investments [Line Items] | |||
Long-Term Investments | $ 64 | $ 66 | |
[1] | During the three years ended December 31, 2020, 2019 and 2018, dividends from these investments were $15 million, $15 million and $16 million, respectively. |
Financing Receivables (Schedule
Financing Receivables (Schedule Of Credit Risk Profile Based On Payment Activity) (Detail) - Public Service Electric and Gas Company - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Concentration Risk [Line Items] | ||
Solar Loans | $ 151 | $ 164 |
Current Portion of Solar Loans | (29) | (28) |
Noncurrent Portion of Solar Loans | $ 122 | 136 |
Average loan repayment period | 8 years | |
Solar Loan I | ||
Concentration Risk [Line Items] | ||
Solar Loans | $ 20 | |
Solar Loan II | ||
Concentration Risk [Line Items] | ||
Solar Loans | 69 | |
Solar Loan III | ||
Concentration Risk [Line Items] | ||
Solar Loans | $ 62 | |
Minimum | ||
Concentration Risk [Line Items] | ||
Loan Receivable, term | 10 years | |
Maximum [Member] | ||
Concentration Risk [Line Items] | ||
Loan Receivable, term | 15 years | |
Commercial/Industrial [Member] | ||
Concentration Risk [Line Items] | ||
Solar Loans | $ 145 | 156 |
Commercial/Industrial [Member] | Solar Loan I | ||
Concentration Risk [Line Items] | ||
Loan Receivable, term | 15 years | |
Commercial/Industrial [Member] | Solar Loan II | ||
Concentration Risk [Line Items] | ||
Loan Receivable, term | 15 years | |
Commercial/Industrial [Member] | Solar Loan III | ||
Concentration Risk [Line Items] | ||
Loan Receivable, term | 10 years | |
Residential [Member] | ||
Concentration Risk [Line Items] | ||
Solar Loans | $ 6 | $ 8 |
Residential [Member] | Solar Loan I | ||
Concentration Risk [Line Items] | ||
Loan Receivable, term | 10 years | |
Residential [Member] | Solar Loan II | ||
Concentration Risk [Line Items] | ||
Loan Receivable, term | 10 years | |
Residential [Member] | Solar Loan III | ||
Concentration Risk [Line Items] | ||
Loan Receivable, term | 10 years |
Financing Receivables (Schedu_2
Financing Receivables (Schedule Of Lease Receivables, Net Of Nonrecourse Debt, Associated With Leveraged Lease Portfolio Based On Counterparty Credit Rating) (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Guarantor Obligations [Line Items] | ||
Lease Receivables, Net of Non-Recourse Debt | $ 299 | $ 498 |
Energy Holdings [Member] | ||
Guarantor Obligations [Line Items] | ||
Lease Receivables, Net of Non-Recourse Debt | 299 | |
Energy Holdings [Member] | Counterparties' Credit Rating (S&P), AA [Member] | ||
Guarantor Obligations [Line Items] | ||
Lease Receivables, Net of Non-Recourse Debt | 9 | |
Energy Holdings [Member] | Standard & Poor's, A- Rating [Member] | ||
Guarantor Obligations [Line Items] | ||
Lease Receivables, Net of Non-Recourse Debt | 54 | |
Energy Holdings [Member] | Counterparties' Credit Rating (S&P), BBB plus, BBB, BBB minus [Member] | ||
Guarantor Obligations [Line Items] | ||
Lease Receivables, Net of Non-Recourse Debt | 196 | |
Energy Holdings [Member] | Standard & Poor's, BB Rating [Member] | ||
Guarantor Obligations [Line Items] | ||
Lease Receivables, Net of Non-Recourse Debt | $ 40 |
Financing Receivables (Narrativ
Financing Receivables (Narrative) (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Financing Receivable, Recorded Investment [Line Items] | ||
Net Investments in Leases | $ 186 | $ 169 |
Shawville Station [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Lease Receivable, Counterparties' S&P Credit Ratings | BB+ | |
Merrill Creek Reservoir [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Net Investments in Leases | $ 20 | |
Lease Receivable, Counterparty | Metropolitan Edison Company (a subsidiary of First Energy) | |
Lease Receivable, Gross Investment | $ 26 |
Financing Receivables (Schedu_3
Financing Receivables (Schedule Of Assets Under Lease Receivables) (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Shawville Station [Member] | |
Financing Receivable, Recorded Investment [Line Items] | |
Lease Receivable, Counterparties' S&P Credit Ratings | BB+ |
Merrill Creek Reservoir [Member] | |
Financing Receivable, Recorded Investment [Line Items] | |
Lease Receivable, Gross Investment | $ 26 |
Lease Receivable, Counterparty | Metropolitan Edison Company (a subsidiary of First Energy) |
Trust Investments (Fair Values
Trust Investments (Fair Values And Gross Unrealized Gains And Losses For The Securities) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | ||
Rabbi Trust [Member] | |||
Schedule of Trust Investments [Line Items] | |||
Cost | $ 238 | $ 228 | |
Gross Unrealized Gains | 28 | 18 | |
Gross Unrealized Losses | 0 | 0 | |
Fair Value | 266 | 246 | |
Rabbi Trust [Member] | Domestic Equity Securities [Member] | |||
Schedule of Trust Investments [Line Items] | |||
Cost | 21 | 21 | |
Equity Securities, FV-NI, Unrealized Gain | 10 | 7 | |
Gross Unrealized Losses | 0 | 0 | |
Fair Value | 31 | 28 | |
Rabbi Trust [Member] | International Equity Securities [Member] | |||
Schedule of Trust Investments [Line Items] | |||
Cost | 0 | 0 | |
Equity Securities, FV-NI, Unrealized Gain | 0 | 0 | |
Gross Unrealized Losses | 0 | 0 | |
Fair Value | 0 | 0 | |
Rabbi Trust [Member] | Equity Securities [Member] | |||
Schedule of Trust Investments [Line Items] | |||
Cost | 21 | 21 | |
Equity Securities, FV-NI, Unrealized Gain | 10 | 7 | |
Gross Unrealized Losses | 0 | 0 | |
Fair Value | 31 | 28 | |
Unrealized Gains (Losses) on Equity Securities still held | 4 | ||
Rabbi Trust [Member] | Government Obligations [Member] | |||
Schedule of Trust Investments [Line Items] | |||
Cost | 94 | 100 | |
Gross Unrealized Gains | 6 | 4 | |
Gross Unrealized Losses | 0 | 0 | |
Fair Value | 100 | 104 | |
Rabbi Trust [Member] | Corporate Debt Securities [Member] | |||
Schedule of Trust Investments [Line Items] | |||
Cost | 123 | 107 | |
Gross Unrealized Gains | 12 | 7 | |
Gross Unrealized Losses | 0 | 0 | |
Fair Value | 135 | 114 | |
Rabbi Trust [Member] | Debt Securities [Member] | |||
Schedule of Trust Investments [Line Items] | |||
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax, Portion Attributable to Parent | 13 | ||
Cost | 217 | 207 | |
Gross Unrealized Gains | 18 | 11 | |
Gross Unrealized Losses | 0 | 0 | |
Fair Value | 235 | 218 | |
PSEG Power LLC | Nuclear Decommissioning Trust (NDT) Fund [Member] | |||
Schedule of Trust Investments [Line Items] | |||
Cost | 1,990 | 1,858 | |
Gross Unrealized Gains | 523 | 374 | |
Gross Unrealized Losses | (14) | (18) | |
Fair Value | 2,499 | [1] | 2,214 |
PSEG Power LLC | Nuclear Decommissioning Trust (NDT) Fund [Member] | Domestic Equity Securities [Member] | |||
Schedule of Trust Investments [Line Items] | |||
Cost | 519 | 425 | |
Equity Securities, FV-NI, Unrealized Gain | 305 | 238 | |
Gross Unrealized Losses | (3) | (4) | |
Fair Value | 821 | 659 | |
PSEG Power LLC | Nuclear Decommissioning Trust (NDT) Fund [Member] | International Equity Securities [Member] | |||
Schedule of Trust Investments [Line Items] | |||
Cost | 388 | 400 | |
Equity Securities, FV-NI, Unrealized Gain | 152 | 103 | |
Gross Unrealized Losses | (9) | (11) | |
Fair Value | 531 | 492 | |
PSEG Power LLC | Nuclear Decommissioning Trust (NDT) Fund [Member] | Equity Securities [Member] | |||
Schedule of Trust Investments [Line Items] | |||
Cost | 907 | 825 | |
Equity Securities, FV-NI, Unrealized Gain | 457 | 341 | |
Gross Unrealized Losses | (12) | (15) | |
Fair Value | 1,352 | 1,151 | |
Unrealized Gains (Losses) on Equity Securities still held | 184 | ||
PSEG Power LLC | Nuclear Decommissioning Trust (NDT) Fund [Member] | Government Obligations [Member] | |||
Schedule of Trust Investments [Line Items] | |||
Cost | 555 | 563 | |
Gross Unrealized Gains | 27 | 16 | |
Gross Unrealized Losses | (1) | (2) | |
Fair Value | 581 | 577 | |
PSEG Power LLC | Nuclear Decommissioning Trust (NDT) Fund [Member] | Corporate Debt Securities [Member] | |||
Schedule of Trust Investments [Line Items] | |||
Cost | 528 | 470 | |
Gross Unrealized Gains | 39 | 17 | |
Gross Unrealized Losses | (1) | (1) | |
Fair Value | 566 | 486 | |
PSEG Power LLC | Nuclear Decommissioning Trust (NDT) Fund [Member] | Debt Securities [Member] | |||
Schedule of Trust Investments [Line Items] | |||
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax, Portion Attributable to Parent | 37 | ||
Cost | 1,083 | 1,033 | |
Gross Unrealized Gains | 66 | 33 | |
Gross Unrealized Losses | (2) | (3) | |
Fair Value | $ 1,147 | $ 1,063 | |
[1] | The NDT Fund Investments table excludes foreign currency of $2 million as of December 31, 2020, |
Trust Investments (Schedule Of
Trust Investments (Schedule Of Accounts Receivable And Accounts Payable) (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Rabbi Trust [Member] | ||
Schedule of Trust Investments [Line Items] | ||
Accounts Receivable | $ 1 | $ 2 |
Accounts Payable | 1 | 0 |
Nuclear Decommissioning Trust (NDT) Fund [Member] | PSEG Power LLC | ||
Schedule of Trust Investments [Line Items] | ||
Accounts Receivable | 11 | 11 |
Accounts Payable | $ 12 | $ 11 |
Trust Investments (Value Of Sec
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 | Dec. 31, 2020 | Dec. 31, 2019 | |
Nuclear Decommissioning Trust (NDT) Fund [Member] | PSEG Power LLC | |||
Schedule of Trust Investments [Line Items] | |||
Fair Value, Less Than 12 Months | $ 152 | $ 197 | |
Gross Unrealized Losses, Less than 12 Months | (6) | (5) | |
Fair Value, Greater Than 12 Months | 40 | 82 | |
Gross Unrealized Losses, Greater Than 12 Months | (8) | (13) | |
Nuclear Decommissioning Trust (NDT) Fund [Member] | PSEG Power LLC | Domestic Equity Securities [Member] | |||
Schedule of Trust Investments [Line Items] | |||
Fair Value, Less Than 12 Months | [1] | 23 | 21 |
Gross Unrealized Losses, Less than 12 Months | [1] | (2) | (1) |
Fair Value, Greater Than 12 Months | [1] | 6 | 6 |
Gross Unrealized Losses, Greater Than 12 Months | [1] | (1) | (3) |
Nuclear Decommissioning Trust (NDT) Fund [Member] | PSEG Power LLC | International Equity Securities [Member] | |||
Schedule of Trust Investments [Line Items] | |||
Fair Value, Less Than 12 Months | [1] | 26 | 28 |
Gross Unrealized Losses, Less than 12 Months | [1] | (2) | (2) |
Fair Value, Greater Than 12 Months | [1] | 27 | 34 |
Gross Unrealized Losses, Greater Than 12 Months | [1] | (7) | (9) |
Nuclear Decommissioning Trust (NDT) Fund [Member] | PSEG Power LLC | Equity Securities [Member] | |||
Schedule of Trust Investments [Line Items] | |||
Fair Value, Less Than 12 Months | [1] | 49 | 49 |
Gross Unrealized Losses, Less than 12 Months | [1] | (4) | (3) |
Fair Value, Greater Than 12 Months | [1] | 33 | 40 |
Gross Unrealized Losses, Greater Than 12 Months | [1] | (8) | (12) |
Nuclear Decommissioning Trust (NDT) Fund [Member] | PSEG Power LLC | Government Obligations [Member] | |||
Schedule of Trust Investments [Line Items] | |||
Fair Value, Less Than 12 Months | [2] | 72 | 99 |
Gross Unrealized Losses, Less than 12 Months | [2] | (1) | (2) |
Fair Value, Greater Than 12 Months | [2] | 0 | 30 |
Gross Unrealized Losses, Greater Than 12 Months | [2] | 0 | 0 |
Nuclear Decommissioning Trust (NDT) Fund [Member] | PSEG Power LLC | Corporate Debt Securities [Member] | |||
Schedule of Trust Investments [Line Items] | |||
Fair Value, Less Than 12 Months | [3] | 31 | 49 |
Gross Unrealized Losses, Less than 12 Months | [3] | (1) | 0 |
Fair Value, Greater Than 12 Months | [3] | 7 | 12 |
Gross Unrealized Losses, Greater Than 12 Months | [3] | 0 | (1) |
Nuclear Decommissioning Trust (NDT) Fund [Member] | PSEG Power LLC | Debt Securities [Member] | |||
Schedule of Trust Investments [Line Items] | |||
Fair Value, Less Than 12 Months | 103 | 148 | |
Gross Unrealized Losses, Less than 12 Months | (2) | (2) | |
Fair Value, Greater Than 12 Months | 7 | 42 | |
Gross Unrealized Losses, Greater Than 12 Months | 0 | (1) | |
Rabbi Trust [Member] | |||
Schedule of Trust Investments [Line Items] | |||
Fair Value, Less Than 12 Months | 21 | 37 | |
Gross Unrealized Losses, Less than 12 Months | 0 | 0 | |
Fair Value, Greater Than 12 Months | 1 | 5 | |
Gross Unrealized Losses, Greater Than 12 Months | 0 | 0 | |
Rabbi Trust [Member] | Government Obligations [Member] | |||
Schedule of Trust Investments [Line Items] | |||
Fair Value, Less Than 12 Months | [4] | 19 | 26 |
Gross Unrealized Losses, Less than 12 Months | [4] | 0 | 0 |
Fair Value, Greater Than 12 Months | [4] | 0 | 3 |
Gross Unrealized Losses, Greater Than 12 Months | [4] | 0 | 0 |
Rabbi Trust [Member] | Corporate Debt Securities [Member] | |||
Schedule of Trust Investments [Line Items] | |||
Fair Value, Less Than 12 Months | [5] | 2 | 11 |
Gross Unrealized Losses, Less than 12 Months | [5] | 0 | 0 |
Fair Value, Greater Than 12 Months | [5] | 1 | 2 |
Gross Unrealized Losses, Greater Than 12 Months | [5] | 0 | 0 |
Rabbi Trust [Member] | Debt Securities [Member] | |||
Schedule of Trust Investments [Line Items] | |||
Fair Value, Less Than 12 Months | 21 | 37 | |
Gross Unrealized Losses, Less than 12 Months | 0 | 0 | |
Fair Value, Greater Than 12 Months | 1 | 5 | |
Gross Unrealized Losses, Greater Than 12 Months | $ 0 | $ 0 | |
[1] | Equity Securities—Investments in marketable equity securities within the NDT Fund are primarily in common stocks within a broad range of industries and sectors. Unrealized gains and losses on these securities are recorded in Net Income. | ||
[2] | 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. | ||
[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 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. | ||
[4] | 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. | ||
[5] | 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. |
Trust Investments (Proceeds Fro
Trust Investments (Proceeds From The Sales Of And The Net Realized Gains On Securities) (Detail) - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||||
Schedule of Trust Investments [Line Items] | ||||||
Net Gains (Losses) on Trust Investments | $ 253 | $ 260 | $ (143) | |||
PSEG Power LLC | ||||||
Schedule of Trust Investments [Line Items] | ||||||
Net Gains (Losses) on Trust Investments | 241 | 253 | (140) | |||
Nuclear Decommissioning Trust (NDT) Fund [Member] | PSEG Power LLC | ||||||
Schedule of Trust Investments [Line Items] | ||||||
Proceeds from Sale and Maturity of Debt Securities, Available-for-sale | [1] | 2,031 | 1,614 | 1,398 | ||
Gross Realized Gains | 214 | 107 | 121 | |||
Gross Realized Losses | (94) | (53) | (51) | |||
Net Realized Gains (Losses) | [2] | 120 | 54 | 70 | ||
Unrealized Gain (Loss) on Securities | 120 | 196 | (209) | |||
Other than Temporary Impairment Losses, Investments | (3) | [3] | 0 | 0 | ||
Net Gains (Losses) on Trust Investments | 237 | 250 | (139) | |||
Rabbi Trust [Member] | ||||||
Schedule of Trust Investments [Line Items] | ||||||
Proceeds from Sale and Maturity of Debt Securities, Available-for-sale | 203 | [4] | 173 | [4] | 103 | |
Gross Realized Gains | 19 | 7 | 2 | |||
Gross Realized Losses | (6) | (3) | (4) | |||
Net Realized Gains (Losses) | [5] | 13 | 4 | (2) | ||
Unrealized Gain (Loss) on Securities | 3 | 6 | (2) | |||
Net Gains (Losses) on Trust Investments | $ 16 | $ 10 | $ (4) | |||
[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] | 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. | |||||
[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. |
Trust Investments (Narrative) (
Trust Investments (Narrative) (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Nuclear Decommissioning Trust (NDT) Fund [Member] | PSEG Power LLC | |
Schedule of Trust Investments [Line Items] | |
NDT Fund Foreign Currency | $ 2 |
Decommissioning Liability, Noncurrent | 852 |
Nuclear Decommissioning Trust (NDT) Fund [Member] | PSEG Power LLC | Minimum | |
Schedule of Trust Investments [Line Items] | |
Decommissioning Costs Including Contingencies | 2,800 |
Nuclear Decommissioning Trust (NDT) Fund [Member] | PSEG Power LLC | Maximum [Member] | |
Schedule of Trust Investments [Line Items] | |
Decommissioning Costs Including Contingencies | 3,000 |
Debt Securities [Member] | Nuclear Decommissioning Trust (NDT) Fund [Member] | PSEG Power LLC | |
Schedule of Trust Investments [Line Items] | |
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax, Portion Attributable to Parent | 37 |
Debt Securities [Member] | Rabbi Trust [Member] | |
Schedule of Trust Investments [Line Items] | |
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax, Portion Attributable to Parent | 13 |
Equity Securities [Member] | Nuclear Decommissioning Trust (NDT) Fund [Member] | PSEG Power LLC | |
Schedule of Trust Investments [Line Items] | |
Unrealized Gains (Losses) on Equity Securities still held | 184 |
Equity Securities [Member] | Rabbi Trust [Member] | |
Schedule of Trust Investments [Line Items] | |
Unrealized Gains (Losses) on Equity Securities still held | $ 4 |
Trust Investments (Amount Of Av
Trust Investments (Amount Of Available-For-Sale Debt Securities By Maturity Periods) (Detail) - Debt Securities [Member] - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Rabbi Trust [Member] | ||
Schedule of Trust Investments [Line Items] | ||
Available-for-sale debt securities, Less than one year | $ 5 | |
Available-for-sale debt securities, 1-5 years | 39 | |
Available-for-sale debt securities, 6-10 years | 30 | |
Available-for-sale debt securities, 11-15 years | 12 | |
Available-for-sale debt securities, 16-20 years | 30 | |
Available-for-sale debt securities, Over 20 years | 119 | |
Total Available-for-Sale Debt Securities | 235 | $ 218 |
PSEG Power LLC | Nuclear Decommissioning Trust (NDT) Fund [Member] | ||
Schedule of Trust Investments [Line Items] | ||
Available-for-sale debt securities, Less than one year | 20 | |
Available-for-sale debt securities, 1-5 years | 301 | |
Available-for-sale debt securities, 6-10 years | 202 | |
Available-for-sale debt securities, 11-15 years | 81 | |
Available-for-sale debt securities, 16-20 years | 79 | |
Available-for-sale debt securities, Over 20 years | 464 | |
Total Available-for-Sale Debt Securities | $ 1,147 | $ 1,063 |
Trust Investments (Fair Value O
Trust Investments (Fair Value Of Rabbi Trust) (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Schedule of Trust Investments [Line Items] | ||
Rabbi Trust | $ 266 | $ 246 |
Public Service Electric and Gas Company | ||
Schedule of Trust Investments [Line Items] | ||
Rabbi Trust | 51 | 48 |
PSEG Power LLC | ||
Schedule of Trust Investments [Line Items] | ||
Rabbi Trust | 66 | 62 |
Rabbi Trust [Member] | ||
Schedule of Trust Investments [Line Items] | ||
Total Rabbi Trust Investments | 266 | 246 |
Rabbi Trust [Member] | Public Service Electric and Gas Company | ||
Schedule of Trust Investments [Line Items] | ||
Rabbi Trust | 51 | 48 |
Rabbi Trust [Member] | PSEG Power LLC | ||
Schedule of Trust Investments [Line Items] | ||
Rabbi Trust | 66 | 62 |
Rabbi Trust [Member] | Other [Member] | ||
Schedule of Trust Investments [Line Items] | ||
Rabbi Trust | $ 149 | $ 136 |
Goodwill And Other Intangible_2
Goodwill And Other Intangibles (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2018 | |
Goodwill [Line Items] | |||
Intangible Assets | $ 149 | $ 158 | |
PSEG Power LLC | |||
Goodwill [Line Items] | |||
Goodwill, Impairment Loss | 16 | ||
Intangible Assets | $ 149 | $ 158 | $ 143 |
Goodwill And Other Intangible_3
Goodwill And Other Intangibles (Schedule of Intangibles) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill [Line Items] | |||
Purchases of Intangible Assets | $ 111 | $ 98 | $ 146 |
Intangible Assets | 158 | 149 | |
PSEG Power LLC | |||
Goodwill [Line Items] | |||
Retirement of Intangibles | (102) | (89) | |
Purchases of Intangible Assets | 111 | 98 | 146 |
Sales and Transfers of Intangible Assets | (3) | ||
Intangible Assets | 158 | 149 | 143 |
Renewable Energy Credits [Member] | PSEG Power LLC | |||
Goodwill [Line Items] | |||
Retirement of Intangibles | (93) | (83) | |
Purchases of Intangible Assets | 94 | 72 | |
Sales and Transfers of Intangible Assets | (3) | ||
Intangible Assets | 46 | 45 | 59 |
Emissions Allowances [Member] | PSEG Power LLC | |||
Goodwill [Line Items] | |||
Retirement of Intangibles | (9) | (6) | |
Purchases of Intangible Assets | 17 | 26 | |
Sales and Transfers of Intangible Assets | 0 | ||
Intangible Assets | $ 112 | $ 104 | $ 84 |
Asset Retirement Obligations _3
Asset Retirement Obligations (AROs) (Impact Of The Revisions On Asset Retirement Obligation) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | ||
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | |||
ARO Liability, Beginning Balance | $ 1,087 | $ 1,063 | |
Liabilities Settled | (9) | (19) | |
Liabilities Incurred | 3 | ||
Accretion Expense | 42 | 40 | |
Accretion Expense Deferred and Recovered in Rate Base | [1] | 17 | 16 |
Revision to Present Value of Future Cash Flows | 75 | (16) | |
ARO Liability, Ending Balance | 1,212 | 1,087 | |
Public Service Electric and Gas Company | |||
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | |||
ARO Liability, Beginning Balance | 303 | 302 | |
Liabilities Settled | (7) | (18) | |
Liabilities Incurred | 1 | ||
Accretion Expense | 0 | 0 | |
Accretion Expense Deferred and Recovered in Rate Base | [1] | 17 | 16 |
Revision to Present Value of Future Cash Flows | 1 | 2 | |
ARO Liability, Ending Balance | 314 | 303 | |
PSEG Power LLC | |||
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | |||
ARO Liability, Beginning Balance | 781 | 758 | |
Liabilities Settled | (2) | (1) | |
Liabilities Incurred | 2 | ||
Accretion Expense | 42 | 40 | |
Accretion Expense Deferred and Recovered in Rate Base | [1] | 0 | 0 |
Revision to Present Value of Future Cash Flows | 74 | (18) | |
ARO Liability, Ending Balance | 895 | 781 | |
Other [Member] | |||
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | |||
ARO Liability, Beginning Balance | 3 | 3 | |
Liabilities Settled | 0 | 0 | |
Liabilities Incurred | 0 | ||
Accretion Expense | 0 | 0 | |
Accretion Expense Deferred and Recovered in Rate Base | [1] | 0 | 0 |
Revision to Present Value of Future Cash Flows | 0 | 0 | |
ARO Liability, Ending Balance | $ 3 | $ 3 | |
[1] | Not reflected as expense in Consolidated Statements of Operations |
Pension, OPEB and Savings Pla_3
Pension, OPEB and Savings Plans (Narrative) (Details) $ in Millions | 6 Months Ended | 12 Months Ended | |||||
Jun. 30, 2019 | Dec. 31, 2021 | Dec. 31, 2020USD ($)plan | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Jul. 01, 2019USD ($) | Dec. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | |||||||
Number of PSEG's defined contribution plans | plan | 2 | ||||||
Defined benefit plan funded status of plan percentage | 85.00% | ||||||
Rabbi trust assets used to fund nonqualified pension plans | $ 266 | ||||||
Defined benefit plans, projected benefit and accumulated benefit obligations | $ 7,300 | $ 6,700 | |||||
Maximum annual 401(k) contribution per employee, percent | 50.00% | ||||||
Defined Contribution Plan, Employer Matching Contribution, Percent of Match | 50.00% | ||||||
Total Employer Matching Contributions | $ 43 | 40 | $ 41 | ||||
Pension Benefits [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Accumulated Other Comprehensive (Income) Loss, Defined Benefit Plan, after Tax | 545 | 499 | |||||
Accumulated Other Comprehensive Income (Loss), Defined Benefit Pension and Other Postretirement Plans, Before Tax | 760 | 695 | |||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) | $ (28) | $ 11 | $ (36) | ||||
Discount Rate | 4.41% | 2.61% | 3.30% | 3.65% | 4.41% | ||
Expected long-term rate of return on plan assets | 7.80% | 7.70% | 7.80% | 7.80% | |||
Defined benefit plans, projected benefit and accumulated benefit obligations | $ 6,400 | ||||||
Interest in Master Trust assets percentage | 92.00% | ||||||
Defined Benefit Plan, Benefit Obligation, Increase (Decrease) for Plan Amendment | $ 0 | $ 0 | |||||
Other Pension Plan, Defined Benefit [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Defined Benefit Plan, Benefit Obligation | 182 | ||||||
Other Benefits [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) | $ (77) | $ (59) | $ 106 | ||||
Discount Rate | 2.46% | 3.20% | 4.31% | ||||
Expected long-term rate of return on plan assets | 7.70% | 7.79% | 7.80% | ||||
Interest in Master Trust assets percentage | 8.00% | ||||||
Defined Benefit Plan, Benefit Obligation, Increase (Decrease) for Plan Amendment | $ 4 | $ 0 | |||||
Equity Securities [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Target allocation percentage of assets | 59.00% | ||||||
Fixed Income Securities [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Target allocation percentage of assets | 23.00% | ||||||
Thrift Plan [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Employer matching contribution, percent | 8.00% | ||||||
Savings Plan [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Employer matching contribution, percent | 7.00% | ||||||
Long Island Electric Utility Servco LLC Pension and OPEB [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Number of PSEG's defined contribution plans | plan | 2 | ||||||
Defined Benefit Plan, Expected Future Employer Contributions, Next Fiscal Year | $ 37 | ||||||
Maximum annual 401(k) contribution per employee, percent | 50.00% | ||||||
Defined Contribution Plan, Employer Matching Contribution, Percent of Match | 50.00% | ||||||
Employer matching contribution, percent | 8.00% | ||||||
Total Employer Matching Contributions | $ 9 | 8 | $ 7 | ||||
Long Island Electric Utility Servco LLC Pension and OPEB [Member] | Pension Benefits [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) | $ 30 | $ 28 | $ 40 | ||||
Discount Rate | 2.98% | 3.52% | 4.60% | ||||
Expected long-term rate of return on plan assets | 7.60% | ||||||
Defined Benefit Plan, Benefit Obligation, Increase (Decrease) for Plan Amendment | $ 0 | $ 0 | |||||
Long Island Electric Utility Servco LLC Pension and OPEB [Member] | Other Benefits [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) | $ 9 | $ 6 | $ 6 | ||||
Discount Rate | 3.08% | 3.60% | 4.67% | ||||
Defined Benefit Plan, Benefit Obligation, Increase (Decrease) for Plan Amendment | $ 0 | $ 3 | |||||
Long Island Electric Utility Servco LLC Pension and OPEB [Member] | Equity Securities [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Target allocation percentage of assets | 60.00% | ||||||
Long Island Electric Utility Servco LLC Pension and OPEB [Member] | Fixed Income Securities [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Target allocation percentage of assets | 25.00% | ||||||
Subsequent Event [Member] | Pension Benefits [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Expected long-term rate of return on plan assets | 7.70% |
Pension, OPEB and Savings Pla_4
Pension, OPEB and Savings Plans (Changes In The Benefit Obligation And The Fair Value Of Plan Assets) (Details) - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||||
Fair Value of Assets at Beginning of Year | [1] | $ 6,449 | ||||
Fair Value of Assets at End of Year | [1] | 6,921 | $ 6,449 | |||
Defined Benefit Plan, Amounts for Asset (Liability) Recognized in Statement of Financial Position [Abstract] | ||||||
Accrued Benefit Cost | (226) | (171) | ||||
Pension Benefits [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Accumulated Other Comprehensive Income (Loss), Defined Benefit Pension and Other Postretirement Plans, Before Tax | 760 | 695 | ||||
Accumulated Other Comprehensive (Income) Loss, Defined Benefit Plan, after Tax | 545 | 499 | ||||
Regulatory Assets | 1,489 | 1,284 | ||||
Deferred Costs and Other Assets | 159 | 137 | ||||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ||||||
Benefit Obligation at Beginning of Year | [2] | 6,892 | 5,921 | |||
Service Cost | 141 | 123 | $ 130 | |||
Interest Cost | 192 | 218 | 208 | |||
Actuarial (Gain) Loss | [3] | 615 | 955 | |||
Gross Benefits Paid | (333) | (325) | ||||
Plan Assumptions | 0 | 0 | ||||
Benefit Obligation at End of Year | [2] | 7,507 | 6,892 | 5,921 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||||
Fair Value of Assets at Beginning of Year | 5,929 | 5,120 | ||||
Actual Return on Plan Assets | 761 | 1,122 | ||||
Employer Contributions | 11 | 12 | ||||
Gross Benefits Paid | (333) | (325) | ||||
Fair Value of Assets at End of Year | 6,368 | 5,929 | 5,120 | |||
Funded Status (Plan Assets less Benefit Obligation) | (1,139) | (963) | ||||
Defined Benefit Plan, Amounts for Asset (Liability) Recognized in Statement of Financial Position [Abstract] | ||||||
Current Accrued Benefit Cost | (11) | (11) | ||||
Accrued Benefit Cost | (1,128) | (952) | ||||
Amounts Recognized | (1,139) | (963) | ||||
Defined Benefit Plan, Accumulated Other Comprehensive (Income) Loss, before Tax [Abstract] | ||||||
Prior Service Cost | 0 | (10) | ||||
Net Actuarial Loss | 2,354 | 2,150 | ||||
Total | [4] | (2,354) | (2,140) | |||
Other Benefits [Member] | ||||||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ||||||
Benefit Obligation at Beginning of Year | [2] | 1,285 | 1,203 | |||
Service Cost | 9 | 10 | 18 | |||
Interest Cost | 34 | 45 | 66 | |||
Actuarial (Gain) Loss | [3] | 32 | 109 | |||
Gross Benefits Paid | (50) | (82) | ||||
Plan Assumptions | (4) | 0 | ||||
Benefit Obligation at End of Year | [2] | 1,306 | 1,285 | 1,203 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||||
Fair Value of Assets at Beginning of Year | 540 | 488 | ||||
Actual Return on Plan Assets | 70 | 107 | ||||
Employer Contributions | 4 | 27 | ||||
Gross Benefits Paid | (50) | (82) | ||||
Fair Value of Assets at End of Year | 564 | 540 | 488 | |||
Funded Status (Plan Assets less Benefit Obligation) | (742) | (745) | ||||
Defined Benefit Plan, Amounts for Asset (Liability) Recognized in Statement of Financial Position [Abstract] | ||||||
Current Accrued Benefit Cost | (12) | (11) | ||||
Accrued Benefit Cost | (730) | (734) | ||||
Amounts Recognized | (742) | (745) | ||||
Defined Benefit Plan, Accumulated Other Comprehensive (Income) Loss, before Tax [Abstract] | ||||||
Prior Service Cost | (310) | (433) | ||||
Net Actuarial Loss | 364 | 409 | ||||
Total | [4] | (54) | 24 | |||
Long Island Electric Utility Servco LLC Pension and OPEB [Member] | ||||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||||
Fair Value of Assets at Beginning of Year | 282 | |||||
Fair Value of Assets at End of Year | 343 | 282 | ||||
Long Island Electric Utility Servco LLC Pension and OPEB [Member] | Pension Benefits [Member] | ||||||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ||||||
Benefit Obligation at Beginning of Year | 453 | [5] | 321 | |||
Service Cost | 33 | 26 | ||||
Interest Cost | 14 | 14 | ||||
Actuarial (Gain) Loss | 74 | 96 | ||||
Gross Benefits Paid | (5) | (4) | ||||
Plan Assumptions | 0 | 0 | ||||
Benefit Obligation at End of Year | 569 | [5] | 453 | [5] | 321 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||||
Fair Value of Assets at Beginning of Year | 282 | 212 | ||||
Actual Return on Plan Assets | 36 | 46 | ||||
Employer Contributions | 30 | 28 | ||||
Gross Benefits Paid | (5) | (4) | ||||
Fair Value of Assets at End of Year | 343 | 282 | 212 | |||
Funded Status (Plan Assets less Benefit Obligation) | (226) | (171) | ||||
Defined Benefit Plan, Amounts for Asset (Liability) Recognized in Statement of Financial Position [Abstract] | ||||||
Accrued Benefit Cost | (226) | (171) | ||||
Amounts Recognized | [6] | (226) | (171) | |||
Long Island Electric Utility Servco LLC Pension and OPEB [Member] | Other Benefits [Member] | ||||||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ||||||
Benefit Obligation at Beginning of Year | 626 | [5] | 501 | |||
Service Cost | 20 | 16 | ||||
Interest Cost | 20 | 22 | ||||
Actuarial (Gain) Loss | 42 | 96 | ||||
Gross Benefits Paid | (9) | (6) | ||||
Plan Assumptions | 0 | (3) | ||||
Benefit Obligation at End of Year | 699 | [5] | 626 | [5] | 501 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||||
Fair Value of Assets at Beginning of Year | 0 | 0 | ||||
Actual Return on Plan Assets | 0 | 0 | ||||
Employer Contributions | 9 | 6 | ||||
Gross Benefits Paid | (9) | (6) | ||||
Fair Value of Assets at End of Year | 0 | 0 | $ 0 | |||
Funded Status (Plan Assets less Benefit Obligation) | (699) | (626) | ||||
Defined Benefit Plan, Amounts for Asset (Liability) Recognized in Statement of Financial Position [Abstract] | ||||||
Accrued Benefit Cost | (699) | (626) | ||||
Amounts Recognized | [6] | $ (699) | $ (626) | |||
[1] | Excludes net receivables of $10 million and $15 million as of December 31, 2020 and 2019, respectively, which consist of interest, dividends and receivables and payables related to pending securities sales and purchases. In addition, the table excludes cash and foreign currency of $1 million and $5 million as of December 31, 2020 and 2019, respectively. | |||||
[2] | Represents projected benefit obligation for pension benefits and the accumulated postretirement benefit obligation for other benefits. The vested benefit obligation is the actuarial present value of the vested benefits to which the employee is currently entitled but based on the employee’s expected date of separation or retirement. | |||||
[3] | For pension benefits, the net actuarial loss was primarily due to a decrease in the discount rate. For OPEB, the net actuarial loss was primarily due to a decrease in the discount rate, partially offset by actuarial gains driven by lower than expected claims experience. | |||||
[4] | Includes $760 million ($545 million, after-tax) and $695 million ($499 million, after-tax) in Accumulated Other Comprehensive Loss related to Pension and OPEB as of December 31, 2020 and 2019, respectively. Also includes Regulatory Assets of $1,489 million and Deferred Assets of $159 million as of December 31, 2020 and Regulatory Assets of $1,284 million and Deferred Assets of $137 million as of December 31, 2019. | |||||
[5] | Represents projected benefit obligation for pension benefits and the accumulated postretirement benefit obligation for other benefits. The vested benefit obligation is the actuarial present value of the vested benefits to which the employee is currently entitled but based on the employee’s expected date of separation or retirement. (B) For pension benefits, the net actuarial loss was primarily due to a decrease in the discount rate. For OPEB, the net actuarial loss in 2020 was primarily due to a decrease in the discount rate, partially offset by actuarial gains driven by lower than expected participation experience. The OPEB net actuarial loss in 2019 was primarily due to a decrease in the discount rate. | |||||
[6] | Amounts equal to the accrued pension and OPEB costs of Servco are offset in Long-Term Receivable of VIE on PSEG’s Consolidated Balance Sheets. |
Pension, OPEB and Savings Pla_5
Pension, OPEB and Savings Plans (Components Of Net Periodic Benefit Cost) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service Cost | $ 141 | $ 123 | $ 130 |
Interest Cost | 192 | 218 | 208 |
Expected Return on Plan Assets | (443) | (408) | (441) |
Amortization of Prior Service Cost | (10) | (18) | (18) |
Amortization of Net Actuarial Gain (Loss) | 92 | 96 | 85 |
Non-Operating Pension and Other Postretirement Plan (Credits) Costs | (169) | (112) | (166) |
Net Periodic Benefit Cost | (28) | 11 | (36) |
Total Benefit Costs, Including Effect of Regulatory Asset | (28) | 11 | (36) |
Other Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service Cost | 9 | 10 | 18 |
Interest Cost | 34 | 45 | 66 |
Expected Return on Plan Assets | (39) | (36) | (41) |
Amortization of Prior Service Cost | (128) | (128) | (1) |
Amortization of Net Actuarial Gain (Loss) | 47 | 50 | 64 |
Non-Operating Pension and Other Postretirement Plan (Credits) Costs | (86) | (69) | 88 |
Net Periodic Benefit Cost | (77) | (59) | 106 |
Total Benefit Costs, Including Effect of Regulatory Asset | $ (77) | $ (59) | $ 106 |
Pension, OPEB and Savings Pla_6
Pension, OPEB and Savings Plans (Schedule Of Pension And OPEB Costs) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) | $ (28) | $ 11 | $ (36) |
Total Benefit Costs | (28) | 11 | (36) |
Pension Benefits [Member] | Public Service Electric and Gas Company | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) | (27) | 0 | (31) |
Pension Benefits [Member] | PSEG Power LLC | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) | (5) | 4 | (9) |
Pension Benefits [Member] | Other [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) | 4 | 7 | 4 |
Other Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) | (77) | (59) | 106 |
Total Benefit Costs | (77) | (59) | 106 |
Other Benefits [Member] | Public Service Electric and Gas Company | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) | (76) | (62) | 68 |
Other Benefits [Member] | PSEG Power LLC | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) | 0 | 3 | 32 |
Other Benefits [Member] | Other [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) | $ (1) | $ 0 | $ 6 |
Pension, OPEB and Savings Pla_7
Pension, OPEB and Savings Plans (Pre-Tax Changes Recognized In Accumulated Other Comprehensive Income (Loss), Regulatory Assets And Deferred Assets) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Pension Benefits [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net Actuarial (Gain) Loss in Current Period | $ 296 | $ 241 |
Amortization of Net Actuarial Gain (Loss) | (92) | (96) |
Prior Service Cost (Credit) in Current Period | 0 | 0 |
Amortization of Prior Service Credit | 10 | 18 |
Total | 214 | 163 |
Other Benefits [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net Actuarial (Gain) Loss in Current Period | 2 | 39 |
Amortization of Net Actuarial Gain (Loss) | (47) | (50) |
Prior Service Cost (Credit) in Current Period | (5) | 0 |
Amortization of Prior Service Credit | 128 | 128 |
Total | $ 78 | $ 117 |
Pension, OPEB and Savings Pla_8
Pension, OPEB and Savings Plans (Assumptions Used To Determine The Benefit Obligations And Net Periodic Benefit Costs) (Details) | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Jul. 01, 2019 | Dec. 31, 2017 | |
Pension Benefits [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Discount Rate | 4.41% | 2.61% | 3.30% | 3.65% | 4.41% | |
Expected Return on Plan Assets | 7.80% | 7.70% | 7.80% | 7.80% | ||
Rate of Compensation Increase | 4.40% | 3.90% | 3.90% | |||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Weighted-Average Interest Crediting Rate | 6.00% | 6.00% | 6.00% | |||
Service Cost Interest Rate | 3.49% | 4.58% | 3.88% | |||
Interest Cost Interest Rate | 2.87% | 4.03% | 3.35% | |||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Rate of Compensation Increase | 3.90% | 3.90% | 3.90% | |||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Weighted-Average Interest Crediting Rate | 6.00% | 6.00% | 6.00% | |||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate | 3.30% | 4.41% | 3.73% | |||
Other Benefits [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Discount Rate | 2.46% | 3.20% | 4.31% | |||
Expected Return on Plan Assets | 7.70% | 7.79% | 7.80% | |||
Rate of Compensation Increase | 4.40% | 3.90% | 3.90% | |||
Service Cost Interest Rate | 3.50% | 4.48% | 3.90% | |||
Interest Cost Interest Rate | 2.87% | 3.91% | 3.39% | |||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Rate of Compensation Increase | 3.90% | 3.90% | 3.90% | |||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate | 3.20% | 4.31% | 3.76% | |||
Immediate Rate | 6.37% | 6.68% | 7.28% | |||
Ultimate Rate | 4.75% | 4.75% | 4.75% | |||
Long Island Electric Utility Servco LLC Pension and OPEB [Member] | Pension Benefits [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Discount Rate | 2.98% | 3.52% | 4.60% | |||
Expected Return on Plan Assets | 7.60% | |||||
Rate of Compensation Increase | 3.95% | 3.25% | 3.25% | |||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Weighted-Average Interest Crediting Rate | 3.75% | 3.75% | 3.75% | |||
Long Island Electric Utility Servco LLC Pension and OPEB [Member] | Other Benefits [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Discount Rate | 3.08% | 3.60% | 4.67% | |||
Rate of Compensation Increase | 3.95% | 3.25% | 3.25% | |||
Immediate Rate | 6.70% | 6.94% | 8.03% | |||
Ultimate Rate | 4.75% | 4.75% | 4.75% |
Pension, OPEB and Savings Pla_9
Pension, OPEB and Savings Plans (Fair Value Measurements And The Levels Of Inputs Used In Determining Fair Values) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | |||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | [1] | $ 6,921 | $ 6,449 | ||
Net receivables excluded from Fair Value | 10 | 15 | |||
Cash and foreign currency excluded from Fair Value | 1 | 5 | |||
Other Securities [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | [2] | 1 | 3 | ||
Cash Equivalents [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | [3] | 85 | 104 | ||
Common Stock [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | [2] | 1,763 | 1,487 | ||
Commingled Equities [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | [4] | 1,964 | 1,707 | ||
Government-Other [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | [5] | 258 | 284 | ||
US Treasury Obligations [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | [5] | 419 | 544 | ||
Corporate [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | [5] | 823 | 837 | ||
Commingled Debt [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 4 | 3 | |||
Other (Futures Contracts) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | (3) | ||||
Subtotal before Measured at Net Asset Value Practical Expedient [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 5,327 | 4,985 | |||
Commingled Equities at NAV [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | [6] | 1,283 | 1,154 | ||
Real Estate Investment [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 306 | [7] | 302 | ||
Preferred Stock [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | [2] | 10 | 19 | ||
Private Equity [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | [8] | 5 | 8 | ||
Quoted Market Prices for Identical Assets (Level 1) [Member] | Other Securities [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | [2] | 1 | 3 | ||
Quoted Market Prices for Identical Assets (Level 1) [Member] | Cash Equivalents [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | [3] | 85 | 103 | ||
Quoted Market Prices for Identical Assets (Level 1) [Member] | Common Stock [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | [2] | 1,763 | 1,487 | ||
Quoted Market Prices for Identical Assets (Level 1) [Member] | Commingled Equities [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | [4] | 1,025 | 1,042 | ||
Quoted Market Prices for Identical Assets (Level 1) [Member] | Government-Other [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | [5] | 0 | 0 | ||
Quoted Market Prices for Identical Assets (Level 1) [Member] | US Treasury Obligations [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | [5] | 0 | 0 | ||
Quoted Market Prices for Identical Assets (Level 1) [Member] | Corporate [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | [5] | 0 | 0 | ||
Quoted Market Prices for Identical Assets (Level 1) [Member] | Commingled Debt [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 4 | 3 | |||
Quoted Market Prices for Identical Assets (Level 1) [Member] | Other (Futures Contracts) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | (3) | ||||
Quoted Market Prices for Identical Assets (Level 1) [Member] | Subtotal before Measured at Net Asset Value Practical Expedient [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 2,888 | 2,654 | |||
Quoted Market Prices for Identical Assets (Level 1) [Member] | Preferred Stock [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | [2] | 10 | 19 | ||
Significant Other Observable Inputs (Level 2) [Member] | Other Securities [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 0 | 0 | [2] | ||
Significant Other Observable Inputs (Level 2) [Member] | Cash Equivalents [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | [3] | 0 | 1 | ||
Significant Other Observable Inputs (Level 2) [Member] | Common Stock [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | [2] | 0 | 0 | ||
Significant Other Observable Inputs (Level 2) [Member] | Commingled Equities [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | [4] | 939 | 665 | ||
Significant Other Observable Inputs (Level 2) [Member] | Government-Other [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | [5] | 258 | 284 | ||
Significant Other Observable Inputs (Level 2) [Member] | US Treasury Obligations [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | [5] | 419 | 544 | ||
Significant Other Observable Inputs (Level 2) [Member] | Corporate [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | [5] | 823 | 837 | ||
Significant Other Observable Inputs (Level 2) [Member] | Commingled Debt [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 0 | 0 | |||
Significant Other Observable Inputs (Level 2) [Member] | Other (Futures Contracts) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 0 | ||||
Significant Other Observable Inputs (Level 2) [Member] | Subtotal before Measured at Net Asset Value Practical Expedient [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 2,439 | 2,331 | |||
Significant Other Observable Inputs (Level 2) [Member] | Preferred Stock [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 0 | 0 | [2] | ||
Pension And OPEB Plans Level 3 [Member] | Other Securities [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 0 | 0 | [2] | ||
Pension And OPEB Plans Level 3 [Member] | Cash Equivalents [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | [3] | 0 | 0 | ||
Pension And OPEB Plans Level 3 [Member] | Common Stock [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | [2] | 0 | 0 | ||
Pension And OPEB Plans Level 3 [Member] | Commingled Equities [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | [4] | 0 | 0 | ||
Pension And OPEB Plans Level 3 [Member] | Government-Other [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | [5] | 0 | 0 | ||
Pension And OPEB Plans Level 3 [Member] | US Treasury Obligations [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 0 | 0 | [5] | ||
Pension And OPEB Plans Level 3 [Member] | Corporate [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | [5] | 0 | 0 | ||
Pension And OPEB Plans Level 3 [Member] | Commingled Debt [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 0 | 0 | |||
Pension And OPEB Plans Level 3 [Member] | Other (Futures Contracts) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 0 | ||||
Pension And OPEB Plans Level 3 [Member] | Subtotal before Measured at Net Asset Value Practical Expedient [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 0 | 0 | |||
Pension And OPEB Plans Level 3 [Member] | Preferred Stock [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 0 | 0 | [2] | ||
Long Island Electric Utility Servco LLC Pension and OPEB [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 343 | 282 | |||
Long Island Electric Utility Servco LLC Pension and OPEB [Member] | Commingled Equities [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | [9] | 259 | 202 | ||
Long Island Electric Utility Servco LLC Pension and OPEB [Member] | Fixed Income Funds [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | [9] | 83 | 80 | ||
Long Island Electric Utility Servco LLC Pension and OPEB [Member] | Cash Equivalents | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 1 | ||||
Long Island Electric Utility Servco LLC Pension and OPEB [Member] | Quoted Market Prices for Identical Assets (Level 1) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 1 | 0 | |||
Long Island Electric Utility Servco LLC Pension and OPEB [Member] | Quoted Market Prices for Identical Assets (Level 1) [Member] | Commingled Equities [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 0 | 0 | [9] | ||
Long Island Electric Utility Servco LLC Pension and OPEB [Member] | Quoted Market Prices for Identical Assets (Level 1) [Member] | Fixed Income Funds [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 0 | 0 | [9] | ||
Long Island Electric Utility Servco LLC Pension and OPEB [Member] | Quoted Market Prices for Identical Assets (Level 1) [Member] | Cash Equivalents | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 1 | ||||
Long Island Electric Utility Servco LLC Pension and OPEB [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 342 | 282 | |||
Long Island Electric Utility Servco LLC Pension and OPEB [Member] | Significant Other Observable Inputs (Level 2) [Member] | Commingled Equities [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 259 | 202 | [9] | ||
Long Island Electric Utility Servco LLC Pension and OPEB [Member] | Significant Other Observable Inputs (Level 2) [Member] | Fixed Income Funds [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 83 | 80 | [9] | ||
Long Island Electric Utility Servco LLC Pension and OPEB [Member] | Significant Other Observable Inputs (Level 2) [Member] | Cash Equivalents | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 0 | ||||
Long Island Electric Utility Servco LLC Pension and OPEB [Member] | Pension And OPEB Plans Level 3 [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 0 | 0 | |||
Long Island Electric Utility Servco LLC Pension and OPEB [Member] | Pension And OPEB Plans Level 3 [Member] | Commingled Equities [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 0 | 0 | [9] | ||
Long Island Electric Utility Servco LLC Pension and OPEB [Member] | Pension And OPEB Plans Level 3 [Member] | Fixed Income Funds [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 0 | $ 0 | [9] | ||
Long Island Electric Utility Servco LLC Pension and OPEB [Member] | Pension And OPEB Plans Level 3 [Member] | Cash Equivalents | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | $ 0 | ||||
[1] | Excludes net receivables of $10 million and $15 million as of December 31, 2020 and 2019, respectively, which consist of interest, dividends and receivables and payables related to pending securities sales and purchases. In addition, the table excludes cash and foreign currency of $1 million and $5 million as of December 31, 2020 and 2019, respectively. | ||||
[2] | Common stocks and preferred stocks are measured using observable data in active markets and considered Level 1. | ||||
[3] | The Collective Investment Fund publishes a daily net asset value (NAV) which participants may use for daily redemptions without restrictions (Level 1). Certain temporary investments are valued using inputs such as time-to-maturity, coupon rate, quality rating and current yield (Level 2). | ||||
[4] | Commingled Funds that allow daily redemption at their daily published NAV without restrictions are classified as Level 1. Commingled Funds that publish daily NAV but with certain near-term redemption restrictions which prevent redemption at the published daily NAV are classified as Level 2. | ||||
[5] | Debt securities include mainly investment grade corporate and municipal bonds, U.S. Treasury obligations and Federal Agency asset-backed securities with a wide range of maturities. These investments are valued using an evaluated pricing approach that varies by asset class and reflects observable market information such as the most recent exchange price or quoted bid for similar securities. Market-based standard inputs typically include benchmark yields, reported trades, broker/dealer quotes and issuer spreads or the most recent quotes for similar securities which are a Level 2 measure. | ||||
[6] | Certain commingled equity funds are not included in the fair value hierarchy as they are measured at fair value using the NAV per share (or its equivalent) practical expedient. These funds do not meet the definition of readily determinable fair value due to the frequency of publishing NAV (monthly). The objectives of these funds are mainly tracking the S&P Index or achieving long-term growth through investment in foreign equity securities and the Morgan Stanley Capital International Index. | ||||
[7] | The unlisted real estate fund invests in office, apartment, industrial and retail space. The fund is valued using the NAV per unit of funds. The investment value of the real estate properties is determined on a quarterly basis by independent market appraisers engaged by the board of directors of the fund. The ability to redeem funds is subject to the availability of cash arising from net investment income, allocations and the sale of investments in the normal course of business. The fund’s NAV is published quarterly. In addition, redemptions require one quarter advance notice prior to redemption and are fulfilled quarterly. The fund, therefore, does not meet the definition of readily determinable fair value. The purpose of the fund is to acquire, own, hold for investment and ultimately dispose of investments in real estate and real estate-related assets with the intention of achieving current income, capital appreciation or both. | ||||
[8] | Private equity investments primarily include various limited partnerships that invest in either operating companies through acquisitions or developing a portfolio of non-U.S. distressed investments to maximize total return on capital. These investments are valued at NAV (or its equivalent) on a quarterly basis and have significant redemption restrictions preventing redemption until fund liquidation and limited ability to sell these investments. Fund liquidation is not expected to occur for several more years. These investments are not included in the fair value hierarchy in accordance with the guidance on NAV practical expedient. | ||||
[9] | Investments in commingled equity and bond funds have a readily determinable fair value as they publish a daily NAV available to investors which is the basis for current transactions and contain certain redemption restrictions requiring advance notice of one to two days for withdrawals (Level 2). |
Pension, OPEB and Savings Pl_10
Pension, OPEB and Savings Plans (Reconciliations Of The Beginning And Ending Balances Of Pension And OPEB Plans' Level 3 Assets) (Details) $ in Millions | Dec. 31, 2020USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | ||
Fair Value of Assets at Beginning of Year | $ 6,449 | [1] |
Fair Value of Assets at End of Year | 6,921 | [1] |
Private Equity [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair Value of Assets at Beginning of Year | 8 | [2] |
Fair Value of Assets at End of Year | $ 5 | [2] |
[1] | Excludes net receivables of $10 million and $15 million as of December 31, 2020 and 2019, respectively, which consist of interest, dividends and receivables and payables related to pending securities sales and purchases. In addition, the table excludes cash and foreign currency of $1 million and $5 million as of December 31, 2020 and 2019, respectively. | |
[2] | Private equity investments primarily include various limited partnerships that invest in either operating companies through acquisitions or developing a portfolio of non-U.S. distressed investments to maximize total return on capital. These investments are valued at NAV (or its equivalent) on a quarterly basis and have significant redemption restrictions preventing redemption until fund liquidation and limited ability to sell these investments. Fund liquidation is not expected to occur for several more years. These investments are not included in the fair value hierarchy in accordance with the guidance on NAV practical expedient. |
Pension, OPEB and Savings Pl_11
Pension, OPEB and Savings Plans (Schedule Of Percentage Of Fair Value Of Total Plan Assets) (Details) | Dec. 31, 2020 | Dec. 31, 2019 |
Defined Benefit Plan Disclosure [Line Items] | ||
Actual plan asset allocation, percent | 100.00% | 100.00% |
Equity Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation percentage of assets | 59.00% | |
Actual plan asset allocation, percent | 72.00% | 68.00% |
Fixed Income Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation percentage of assets | 23.00% | |
Actual plan asset allocation, percent | 22.00% | 26.00% |
Other Investments [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation percentage of assets | 18.00% | |
Actual plan asset allocation, percent | 6.00% | 6.00% |
Long Island Electric Utility Servco LLC Pension and OPEB [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual plan asset allocation, percent | 100.00% | 100.00% |
Long Island Electric Utility Servco LLC Pension and OPEB [Member] | Equity Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation percentage of assets | 60.00% | |
Actual plan asset allocation, percent | 76.00% | 72.00% |
Long Island Electric Utility Servco LLC Pension and OPEB [Member] | Fixed Income Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation percentage of assets | 25.00% | |
Actual plan asset allocation, percent | 24.00% | 28.00% |
Long Island Electric Utility Servco LLC Pension and OPEB [Member] | Other Investments [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation percentage of assets | 15.00% |
Pension, OPEB and Savings Pl_12
Pension, OPEB and Savings Plans (Estimated Future Benefit Payments) (Details) $ in Millions | Dec. 31, 2020USD ($) |
Pension Benefits [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Payments Expected Next Twelve Months | $ 389 |
Payments Expected Year Two | 368 |
Payments Expected Year Three | 381 |
Payments Expected Year Four | 392 |
Payments Expected Year Five | 401 |
Payments Expected Thereafter | 2,119 |
Total Estimated Future Benefit Payments | 4,050 |
Other Benefits [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Payments Expected Next Twelve Months | 83 |
Payments Expected Year Two | 84 |
Payments Expected Year Three | 84 |
Payments Expected Year Four | 84 |
Payments Expected Year Five | 83 |
Payments Expected Thereafter | 388 |
Total Estimated Future Benefit Payments | 806 |
Long Island Electric Utility Servco LLC Pension and OPEB [Member] | Pension Benefits [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Payments Expected Next Twelve Months | 8 |
Payments Expected Year Two | 10 |
Payments Expected Year Three | 12 |
Payments Expected Year Four | 15 |
Payments Expected Year Five | 17 |
Payments Expected Thereafter | 123 |
Total Estimated Future Benefit Payments | 185 |
Long Island Electric Utility Servco LLC Pension and OPEB [Member] | Other Benefits [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Payments Expected Next Twelve Months | 9 |
Payments Expected Year Two | 11 |
Payments Expected Year Three | 13 |
Payments Expected Year Four | 15 |
Payments Expected Year Five | 17 |
Payments Expected Thereafter | 111 |
Total Estimated Future Benefit Payments | $ 176 |
Pension, OPEB and Savings Pl_13
Pension, OPEB and Savings Plans (Schedule Of Amount Paid For Employer Matching Contributions) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total Employer Matching Contributions | $ 43 | $ 40 | $ 41 |
PSEG Power LLC | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total Employer Matching Contributions | 10 | 10 | 10 |
Public Service Electric and Gas Company | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total Employer Matching Contributions | 27 | 25 | 26 |
Other [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total Employer Matching Contributions | $ 6 | $ 5 | $ 5 |
Commitments And Contingent Li_3
Commitments And Contingent Liabilities (Face Value Of Outstanding Guarantees, Current Exposure And Margin Positions) (Detail) - PSEG Power LLC - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Other Commitments [Line Items] | ||
Face Value of Outstanding Guarantees | $ 1,792 | $ 1,854 |
Exposure under Current Guarantees | 128 | 171 |
Letters of Credit Margin Posted | 128 | 121 |
Letters of Credit Margin Received | 45 | 29 |
Counterparty Cash Margin Deposited | 0 | 0 |
Counterparty Cash Margin Received | (5) | (4) |
Net Broker Balance Deposited (Received) | 59 | 48 |
Other Letters of Credit | $ 42 | $ 82 |
Commitments And Contingent Li_4
Commitments And Contingent Liabilities (Environmental Matters) (Detail) $ in Millions | Dec. 31, 2020USD ($)Plantmi | Dec. 31, 2019USD ($) |
Site Contingency [Line Items] | ||
Percentage of residential gas supply permitted to be recovered in gas hedging by BPU | 80.00% | |
Number of miles related to the Passaic River constituting a facility as determined by the US Environmental Protection Agency | mi | 17 | |
Number of legal entities contacted by EPA in conjunction with Newark Bay study area contamination | 11 | |
Accrued environmental costs | $ 286 | $ 349 |
Public Service Electric and Gas Company | ||
Site Contingency [Line Items] | ||
Accrued environmental costs | 236 | 294 |
Regulatory Assets | 4,241 | $ 4,028 |
MGP Remediation Site Contingency [Member] | Public Service Electric and Gas Company | ||
Site Contingency [Line Items] | ||
Remediation liability recorded as other current liabilities | 89 | |
Remediation liability recorded as environmental costs in noncurrent liabilities | 231 | |
Regulatory Assets | $ 320 | |
PSE&G's Former MGP Sites [Member] | ||
Site Contingency [Line Items] | ||
Number of MGP sites identified by registrant and the NJDEP requiring some level of remedial action | 38 | |
Passaic River Site Contingency [Member] | ||
Site Contingency [Line Items] | ||
Estimated Cleanup Costs EPA Preferred Method | $ 2,300 | |
Aggregate number of PRPs directed by the NJDEP to arrange for natural resource damage assessment and interim compensatory restoration along the lower Passaic River | 56 | |
Accrual for Environmental Loss Contingencies | $ 65 | |
Passaic River Site Contingency [Member] | Public Service Electric and Gas Company | ||
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 LLC | ||
Site Contingency [Line Items] | ||
Accrual for Environmental Loss Contingencies | 13 | |
Minimum | MGP Remediation Site Contingency [Member] | Public Service Electric and Gas Company | ||
Site Contingency [Line Items] | ||
Loss Contingency, Estimate of Possible Loss | 320 | |
Accrual for Environmental Loss Contingencies | 320 | |
Maximum [Member] | MGP Remediation Site Contingency [Member] | Public Service Electric and Gas Company | ||
Site Contingency [Line Items] | ||
Loss Contingency, Estimate of Possible Loss | $ 358 |
Commitments And Contingent Li_5
Commitments And Contingent Liabilities (Basic Generation Service (BGS) And Basic Gas Supply Service (BGSS)) (Detail) cf in Billions | Dec. 31, 2020cf$ / MWh$ / mwdMW |
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% |
Number of cubic feet to be hedged | cf | 70 |
Public Service Electric and Gas Company | Auction Year 2017 [Member] | |
Long-term Purchase Commitment [Line Items] | |
Load (MW) | MW | 2,900 |
Dollars Per Megawatt Hour | $ / MWh | 91.77 |
Public Service Electric and Gas Company | Auction Year 2018 [Member] | |
Long-term Purchase Commitment [Line Items] | |
Load (MW) | MW | 2,800 |
Dollars Per Megawatt Hour | $ / MWh | 98.04 |
Public Service Electric and Gas Company | Auction Year 2019 [Member] | |
Long-term Purchase Commitment [Line Items] | |
Load (MW) | MW | 2,800 |
$ per kWh | $ / mwd | 359.98 |
Dollars Per Megawatt Hour | $ / MWh | 102.16 |
Public Service Electric and Gas Company | Auction Year 2020 [Member] | |
Long-term Purchase Commitment [Line Items] | |
Load (MW) | MW | 2,900 |
$ per kWh | $ / mwd | 351.06 |
Dollars Per Megawatt Hour | $ / MWh | 64.80 |
Commitments And Contingent Li_6
Commitments And Contingent Liabilities (Minimum Fuel Purchase Requirements) (Detail) - PSEG Power LLC $ in Millions | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Long-term Purchase Commitment [Line Items] | |
Coverage percentage of nuclear fuel commitments of uranium, enrichment, and fabrication requirements | 100.00% |
Nuclear Fuel [Member] | |
Long-term Purchase Commitment [Line Items] | |
Total minimum purchase requirements | $ 193 |
Nuclear Fuel Enrichment [Member] | |
Long-term Purchase Commitment [Line Items] | |
Total minimum purchase requirements | 346 |
Nuclear Fuel Fabrication [Member] | |
Long-term Purchase Commitment [Line Items] | |
Total minimum purchase requirements | 174 |
Natural Gas [Member] | |
Long-term Purchase Commitment [Line Items] | |
Total minimum purchase requirements | $ 1,256 |
Commitments And Contingent Li_7
Commitments And Contingent Liabilities (Regulatory Proceedings) (Detail) - USD ($) $ in Millions | Jan. 31, 2021 | Dec. 31, 2020 |
Maximum [Member] | LIPA complaint | ||
Loss Contingencies [Line Items] | ||
Loss Contingency, Estimate of Possible Loss | $ 70 | |
Maximum [Member] | PSEG Power LLC | Sewaren 7 Claim [Member] | ||
Loss Contingencies [Line Items] | ||
Loss Contingency, Estimate of Possible Loss | 93 | |
Maximum [Member] | PSEG Power LLC | Sewaren 7 Claim [Member] | Subsequent Event [Member] | ||
Loss Contingencies [Line Items] | ||
Loss Contingency, Estimate of Possible Loss | $ 68 | |
Minimum | LIPA complaint | ||
Loss Contingencies [Line Items] | ||
Loss Contingency, Estimate of Possible Loss | $ 6.5 |
Commitments And Contingent Li_8
Commitments And Contingent Liabilities (Nuclear Insurance Coverages and Assessments) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Other Commitments [Line Items] | |
Maximum Aggregate Assessment Per Incident | $ 433 |
Maximum Aggregate Annual Assessment | 65 |
Nuclear Insurance Aggregate Limit | 3,200 |
Total Site Coverage for Nuclear Event [Member] | |
Other Commitments [Line Items] | |
Nuclear Liability Total | 13,300 |
Total Site Coverage for Nuclear Event [Member] | American Nuclear Insurers [Member] | |
Other Commitments [Line Items] | |
Public And Nuclear Worker Liability Primary Layer | 450 |
Retrospective Assessments [Member] | |
Other Commitments [Line Items] | |
Replacement Power Total | $ 49 |
Debt and Credit Facilties (Long
Debt and Credit Facilties (Long-Term Debt) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | ||
Debt Instrument [Line Items] | ||||
Long-term Debt | $ 16,293 | |||
Long-term Debt, Current Maturities | (1,684) | $ (1,365) | ||
Total Long-Term Debt | 14,496 | 13,743 | ||
PSEG [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | 2,946 | 2,450 | ||
Long-term Debt, Current Maturities | (300) | (700) | ||
Net Unamortized Discount and Debt Issuance Costs | (17) | (9) | ||
Total Long-Term Debt | 2,629 | 1,741 | ||
PSEG [Member] | Term Loan maturing in 2020 [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | 0 | 700 | ||
PSEG [Member] | Variable Rate Term Loan due 2017 [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | 0 | 700 | ||
PSEG [Member] | Senior Notes Two Point Zero Percent Due In Two Thousand Twenty One [Member] [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | $ 300 | 300 | ||
Stated interest rate of debt instrument | 2.00% | |||
PSEG [Member] | Senior Notes Two Point Six Five Percent Due In Two Thousand Twenty Two [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | $ 700 | 700 | ||
Stated interest rate of debt instrument | 2.65% | |||
PSEG [Member] | Senior Notes Two Point Eight Eight Percent Due In Two Thousand Twenty Four [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | $ 750 | 750 | ||
Stated interest rate of debt instrument | 2.88% | |||
PSEG [Member] | Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | $ 2,946 | 1,750 | ||
PSEG [Member] | Senior Notes Zero Point Eight Zero Percent Due In Two Thousand Twenty Five | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | $ 550 | 0 | ||
Stated interest rate of debt instrument | 0.80% | |||
PSEG [Member] | Senior Notes One Point Six Zero Percent Due In Two Thousand Thirty | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | $ 550 | 0 | ||
Stated interest rate of debt instrument | 1.60% | |||
PSEG [Member] | Senior Notes Eight Point Six Two Five Percent Due In Two Thousand Thirty One | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | $ 96 | [1] | 0 | |
Stated interest rate of debt instrument | 8.63% | |||
PSEG Power LLC | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | $ 2,348 | 2,850 | ||
Long-term Debt, Current Maturities | (950) | (406) | ||
Net Unamortized Discount and Debt Issuance Costs | (6) | (10) | ||
Total Long-Term Debt | 1,392 | 2,434 | ||
PSEG Power LLC | Senior Notes Five Point One Three Percentage Due Two Thousand Twenty [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | $ 0 | 406 | ||
Stated interest rate of debt instrument | 5.13% | |||
PSEG Power LLC | Senior Notes Four Point One Five Percentage Due Two Thousand Twenty One [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | $ 700 | 700 | ||
Stated interest rate of debt instrument | 3.00% | |||
PSEG Power LLC | Senior Notes Three Point Zero Percent Due In Two Thousand Twenty One [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | $ 250 | 250 | ||
Stated interest rate of debt instrument | 4.15% | |||
PSEG Power LLC | Senior Notes Three Point Eight Five Percent due Two Thousand Twenty Three [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | $ 700 | 700 | ||
Stated interest rate of debt instrument | 3.85% | |||
PSEG Power LLC | Senior Notes Four Point Three Percent Due Two Thousand Twenty Three [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | $ 250 | 250 | ||
Stated interest rate of debt instrument | 4.30% | |||
PSEG Power LLC | Senior Notes Eight Point Six Three Percent Due Two Thousand Thirty One [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | $ 404 | [1] | 500 | |
Stated interest rate of debt instrument | 8.63% | |||
PSEG Power LLC | Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | $ 2,304 | 2,806 | ||
PSEG Power LLC | Pollution Control Notes Floating Rate Due On Two Thousand Nineteen [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | [2] | 44 | 44 | |
PSEG Power LLC | Pollution Control Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | 44 | 44 | ||
Public Service Electric and Gas Company | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | 10,999 | 9,908 | ||
Long-term Debt, Current Maturities | (434) | (259) | ||
Net Unamortized Discount and Debt Issuance Costs | (90) | (81) | ||
Total Long-Term Debt | 10,475 | 9,568 | ||
Public Service Electric and Gas Company | First And Refunding Mortgage Bonds Nine Point Two Five Percentage Due On Two Twenty One [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | [3] | $ 134 | 134 | |
Stated interest rate of debt instrument | 9.25% | |||
Public Service Electric and Gas Company | First And Refunding Mortgage Bonds Eight Point Zero Zero Percentage Due On Two Thirty Seven [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | [3] | $ 7 | 7 | |
Stated interest rate of debt instrument | 8.00% | |||
Public Service Electric and Gas Company | First And Refunding Mortgage Bonds Five Point Zero Zero Percentage Due On Two Thirty Seven [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | [3] | $ 8 | 8 | |
Stated interest rate of debt instrument | 5.00% | |||
Public Service Electric and Gas Company | First And Refunding Mortgage Bonds [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | $ 149 | 149 | ||
Public Service Electric and Gas Company | Medium Term Notes Three Point Five Zero Percentage Due On Two Thousand Twenty [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | [3] | $ 0 | 250 | |
Stated interest rate of debt instrument | 3.50% | |||
Public Service Electric and Gas Company | Medium Term Notes Seven Point Zero Four Percentage Due On Two Thousand Twenty [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | [3] | $ 0 | 9 | |
Stated interest rate of debt instrument | 7.04% | |||
Public Service Electric and Gas Company | Medium Term Notes One Point Nine Zero Percent Due In Two Thousand Twenty One [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | [3] | $ 300 | 300 | |
Stated interest rate of debt instrument | 1.90% | |||
Public Service Electric and Gas Company | Medium Term Notes Two Point Three Eight Percent Due In Two Thousand Twenty Three [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | [3] | $ 500 | 500 | |
Stated interest rate of debt instrument | 2.38% | |||
Public Service Electric and Gas Company | Medium Term Notes Three Point Two Five Percent due Two Thousand Twenty Three [Member] | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate of debt instrument | 3.25% | |||
Debt Instrument, Face Amount | [3] | $ 325 | 325 | |
Public Service Electric and Gas Company | Medium Term Notes Three Point Seven Five Percent Due In Two Thousand Twenty Four [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | [3] | $ 250 | 250 | |
Stated interest rate of debt instrument | 3.75% | |||
Public Service Electric and Gas Company | Medium Term Notes Three Point One Five Percent Due In Two Thousand Twenty Four [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | [3] | $ 250 | 250 | |
Stated interest rate of debt instrument | 3.15% | |||
Public Service Electric and Gas Company | Medium Term Notes Three Point Zero Five Percent Due In Two Thousand Twenty Four [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | [3] | $ 250 | 250 | |
Stated interest rate of debt instrument | 3.05% | |||
Public Service Electric and Gas Company | Medium Term Notes Three Point Zero Percent Due In Two Thousand Twenty Five [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | [3] | $ 350 | 350 | |
Stated interest rate of debt instrument | 3.00% | |||
Public Service Electric and Gas Company | Medium Term Notes Two Point Two Five Percent due Two Thousand Twenty Six [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | [3] | $ 425 | 425 | |
Stated interest rate of debt instrument | 2.25% | |||
Public Service Electric and Gas Company | Medium Term Notes Three Point Zero Percent due Two Thousand Twenty Seven [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | [3] | $ 425 | 425 | |
Stated interest rate of debt instrument | 3.00% | |||
Public Service Electric and Gas Company | Medium Term Notes Three Point Seven Zero Percent due Two Thousand Twenty Eight [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | [3] | $ 375 | 375 | |
Stated interest rate of debt instrument | 3.70% | |||
Public Service Electric and Gas Company | Medium Term Notes Three Point Six Five Percent due Two Thousand Twenty Eight [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | [3] | $ 325 | 325 | |
Stated interest rate of debt instrument | 3.65% | |||
Public Service Electric and Gas Company | Medium Term Notes Three Point Two Zero Percent due Two Thousand Twenty NIne [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | [3] | $ 375 | 375 | |
Stated interest rate of debt instrument | 3.20% | |||
Public Service Electric and Gas Company | Medium Term Notes Five Point Two Five Percentage Due On Two Thousand Thirty Five [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | [3] | $ 250 | 250 | |
Stated interest rate of debt instrument | 5.25% | |||
Public Service Electric and Gas Company | Medium Term Notes Five Point Seven Zero Percentage Due On Two Thousand Thirty Six [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | [3] | $ 250 | 250 | |
Stated interest rate of debt instrument | 5.70% | |||
Public Service Electric and Gas Company | Medium Term Notes Five Point Eight Zero Percentage Due On Two Thousand Thirty Seven [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | [3] | $ 350 | 350 | |
Stated interest rate of debt instrument | 5.80% | |||
Public Service Electric and Gas Company | Medium Term Notes Five Point Three Eight Percentage Due On Two Thousand Thirty Nine [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | [3] | $ 250 | 250 | |
Stated interest rate of debt instrument | 5.38% | |||
Public Service Electric and Gas Company | Medium Term Notes Five Point Five Zero Percentage Due On Two Thousand Forty [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | [3] | $ 300 | 300 | |
Stated interest rate of debt instrument | 5.50% | |||
Public Service Electric and Gas Company | Medium-Term Notes 3.95% Due On 2042 [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | [3] | $ 450 | 450 | |
Stated interest rate of debt instrument | 3.95% | |||
Public Service Electric and Gas Company | Medium-Term Notes 3.65% Due On 2042 [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | [3] | $ 350 | 350 | |
Stated interest rate of debt instrument | 3.65% | |||
Public Service Electric and Gas Company | Medium Term Notes Three Point Eight Zero Percent Due In Two Thousand Forty Three [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | [3] | $ 400 | 400 | |
Stated interest rate of debt instrument | 3.80% | |||
Public Service Electric and Gas Company | Medium Term Notes Four Point Zero Percent Due In Two Thousand Forty Four [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | [3] | $ 250 | 250 | |
Stated interest rate of debt instrument | 4.00% | |||
Public Service Electric and Gas Company | Medium Term Notes Four Point Zero Five Percent due Two Thousand Forty Five [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | $ 250 | [3] | 250 | |
Stated interest rate of debt instrument | 4.05% | |||
Public Service Electric and Gas Company | Medium Term Notes Four Point One Five Percent Due In Two Thousand Forty Five [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | [3] | $ 250 | 250 | |
Stated interest rate of debt instrument | 4.15% | |||
Public Service Electric and Gas Company | Medium Term Notes Three Point Eight Zero Percent due Two Thousand Forty Six [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | [3] | $ 550 | 550 | |
Stated interest rate of debt instrument | 3.80% | |||
Public Service Electric and Gas Company | Medium Term Notes Three Point Six Zero Percent due Two Thousand Forty Seven [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | [3] | $ 350 | 350 | |
Stated interest rate of debt instrument | 3.60% | |||
Public Service Electric and Gas Company | Medium Term Notes Four Point Zero Five Percent due Two Thousand Forty Eight [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | [3] | $ 325 | 325 | |
Stated interest rate of debt instrument | 4.05% | |||
Public Service Electric and Gas Company | Medium Term Notes Three Point Eight Five Percent due Two Thousand Forty Nine [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | [3] | $ 375 | 375 | |
Stated interest rate of debt instrument | 3.85% | |||
Public Service Electric and Gas Company | Medium Term Notes Three Point Two Zero Percent due Two Thousand Forty NIne [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | [3] | $ 400 | 400 | |
Stated interest rate of debt instrument | 3.20% | |||
Public Service Electric and Gas Company | Total Medium Term Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | $ 10,850 | 9,759 | ||
Public Service Electric and Gas Company | Medium Term Notes Two Point Four Five due Two Thousand Thirty | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | $ 300 | 0 | ||
Stated interest rate of debt instrument | 2.45% | |||
Public Service Electric and Gas Company | Medium Term Notes 3.15% due 2050 | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | $ 300 | 0 | ||
Stated interest rate of debt instrument | 3.15% | |||
Public Service Electric and Gas Company | Medium Term Notes 2.70% due 2050 | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | $ 375 | 0 | ||
Stated interest rate of debt instrument | 2.70% | |||
Public Service Electric and Gas Company | Medium Term Notes 2.05% due 2050 | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | $ 375 | $ 0 | ||
Stated interest rate of debt instrument | 2.05% | |||
[1] | In December 2020, PSEG issued $96 million principal amount of 8.63% Senior Notes due 2031 to holders of a like principal amount of 8.63% Senior Notes due 2031 originally issued by PSEG Power who validly tendered their notes pursuant to an offer to exchange. Upon consummation of the offer to exchange, the PSEG Power notes accepted in the exchange were cancelled. The transaction resulted in a non-cash financing activity for both PSEG and PSEG Power. | |||
[2] | The Pennsylvania Economic Development Financing Authority (PEDFA) bond that is serviced and secured by PSEG Power Pollution Control Notes is a variable rate bond that is in weekly reset mode. | |||
[3] | Secured by essentially all property of PSE&G pursuant to its First and Refunding Mortgage. |
Debt and Credit Facilities (Lon
Debt and Credit Facilities (Long-Term Debt Maturities) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Repayments in Next Twelve Months | $ 1,684 | |
Repayments in Year Two | 744 | |
Repayments in Year Three | 1,775 | |
Repayments in Year Four | 1,500 | |
Repayments in Year Five | 900 | |
Thereafter | 9,690 | |
Long-term Debt | 16,293 | |
Public Service Electric and Gas Company | ||
Debt Instrument [Line Items] | ||
Repayments in Next Twelve Months | 434 | |
Repayments in Year Two | 0 | |
Repayments in Year Three | 825 | |
Repayments in Year Four | 750 | |
Repayments in Year Five | 350 | |
Thereafter | 8,640 | |
Long-term Debt | 10,999 | $ 9,908 |
PSEG Power LLC | ||
Debt Instrument [Line Items] | ||
Repayments in Next Twelve Months | 950 | |
Repayments in Year Two | 44 | |
Repayments in Year Three | 950 | |
Repayments in Year Four | 0 | |
Repayments in Year Five | 0 | |
Thereafter | 404 | |
Long-term Debt | 2,348 | 2,850 |
PSEG [Member] | ||
Debt Instrument [Line Items] | ||
Repayments in Next Twelve Months | 300 | |
Repayments in Year Two | 700 | |
Repayments in Year Three | 0 | |
Repayments in Year Four | 750 | |
Repayments in Year Five | 550 | |
Thereafter | 646 | |
Long-term Debt | $ 2,946 | $ 2,450 |
Debt and Credit Facilities (L_2
Debt and Credit Facilities (Long-Term Debt Financing Transactions) (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |||
Debt Instrument [Line Items] | |||||
Commercial Paper | $ 1,063 | $ 1,115 | |||
Issuance of Long-Term Debt | 2,450 | 1,900 | $ 2,750 | ||
Long-term Debt | 16,293 | ||||
PSEG [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term Debt | 2,946 | 2,450 | |||
PSEG [Member] | Term Loan maturing in 2020 [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term Debt | 0 | 700 | |||
Repayments of Long-term Debt | 700 | ||||
PSEG [Member] | Senior Notes Zero Point Eight Zero Percent Due In Two Thousand Twenty Five | |||||
Debt Instrument [Line Items] | |||||
Issuance of Long-Term Debt | 550 | ||||
Long-term Debt | $ 550 | 0 | |||
Stated interest rate of debt instrument | 0.80% | ||||
PSEG [Member] | Senior Notes One Point Six Zero Percent Due In Two Thousand Thirty | |||||
Debt Instrument [Line Items] | |||||
Issuance of Long-Term Debt | $ 550 | ||||
Long-term Debt | $ 550 | 0 | |||
Stated interest rate of debt instrument | 1.60% | ||||
PSEG [Member] | Senior Notes Eight Point Six Two Five Percent Due In Two Thousand Thirty One | |||||
Debt Instrument [Line Items] | |||||
Long-term Debt | $ 96 | [1] | 0 | ||
Stated interest rate of debt instrument | 8.63% | ||||
Public Service Electric and Gas Company | |||||
Debt Instrument [Line Items] | |||||
Commercial Paper | $ 100 | 362 | |||
Issuance of Long-Term Debt | 1,350 | 1,150 | 1,350 | ||
Long-term Debt | 10,999 | 9,908 | |||
Public Service Electric and Gas Company | Medium Term Notes Three Point Seven Zero Percent due Two Thousand Twenty Eight [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term Debt | [2] | $ 375 | 375 | ||
Stated interest rate of debt instrument | 3.70% | ||||
Public Service Electric and Gas Company | Medium Term Notes Four Point Zero Five Percent due Two Thousand Forty Eight [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term Debt | [2] | $ 325 | 325 | ||
Stated interest rate of debt instrument | 4.05% | ||||
Public Service Electric and Gas Company | Medium Term Notes Three Point Two Five Percent due Two Thousand Twenty Three [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Face Amount | [2] | $ 325 | 325 | ||
Stated interest rate of debt instrument | 3.25% | ||||
Public Service Electric and Gas Company | Medium Term Notes Three Point Six Five Percent due Two Thousand Twenty Eight [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term Debt | [2] | $ 325 | 325 | ||
Stated interest rate of debt instrument | 3.65% | ||||
Public Service Electric and Gas Company | Medium Term Notes Three Point Two Zero Percent due Two Thousand Forty NIne [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term Debt | [2] | $ 400 | 400 | ||
Stated interest rate of debt instrument | 3.20% | ||||
Public Service Electric and Gas Company | Medium Term Notes Three Point Two Zero Percent due Two Thousand Twenty NIne [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term Debt | [2] | $ 375 | 375 | ||
Stated interest rate of debt instrument | 3.20% | ||||
Public Service Electric and Gas Company | Medium Term Notes Three Point Eight Five Percent due Two Thousand Forty Nine [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term Debt | [2] | $ 375 | 375 | ||
Stated interest rate of debt instrument | 3.85% | ||||
Public Service Electric and Gas Company | Medium Term Notes Two Point Four Five Percent due Two Thousand Thirty [Member] | |||||
Debt Instrument [Line Items] | |||||
Issuance of Long-Term Debt | $ 300 | ||||
Stated interest rate of debt instrument | 2.45% | ||||
Public Service Electric and Gas Company | Medium Term Notes Three Point One Five Percent due Two Thousand Fifty [Member] | |||||
Debt Instrument [Line Items] | |||||
Issuance of Long-Term Debt | $ 300 | ||||
Stated interest rate of debt instrument | 3.15% | ||||
Public Service Electric and Gas Company | Medium Term Notes Two Point Seven Zero Percent due Two Thousand Fifty [Member] | |||||
Debt Instrument [Line Items] | |||||
Issuance of Long-Term Debt | $ 375 | ||||
Stated interest rate of debt instrument | 2.70% | ||||
Public Service Electric and Gas Company | Medium Term Notes 2.05% due 2050 | |||||
Debt Instrument [Line Items] | |||||
Issuance of Long-Term Debt | $ 375 | ||||
Long-term Debt | $ 375 | 0 | |||
Stated interest rate of debt instrument | 2.05% | ||||
Public Service Electric and Gas Company | Medium Term Notes Three Point Five Zero Percentage Due On Two Thousand Twenty [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term Debt | [2] | $ 0 | 250 | ||
Stated interest rate of debt instrument | 3.50% | ||||
Repayments of Long-term Debt | $ 250 | ||||
Public Service Electric and Gas Company | Medium Term Notes Seven Point Zero Four Percentage Due On Two Thousand Twenty [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term Debt | [2] | $ 0 | 9 | ||
Stated interest rate of debt instrument | 7.04% | ||||
Repayments of Long-term Debt | $ 9 | ||||
PSEG Power LLC | |||||
Debt Instrument [Line Items] | |||||
Issuance of Long-Term Debt | 0 | 0 | $ 700 | ||
Long-term Debt | 2,348 | 2,850 | |||
PSEG Power LLC | Senior Notes Three Point Eight Five Percent due Two Thousand Twenty Three [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term Debt | $ 700 | 700 | |||
Stated interest rate of debt instrument | 3.85% | ||||
PSEG Power LLC | Senior Notes Five Point One Three Percentage Due Two Thousand Twenty [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term Debt | $ 0 | 406 | |||
Stated interest rate of debt instrument | 5.13% | ||||
Repayments of Long-term Debt | $ 406 | ||||
PSEG Power LLC | Senior Notes Eight Point Six Three Percent Due Two Thousand Thirty One [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term Debt | $ 404 | [1] | $ 500 | ||
Stated interest rate of debt instrument | 8.63% | ||||
Repayments of Long-term Debt | $ 96 | ||||
[1] | In December 2020, PSEG issued $96 million principal amount of 8.63% Senior Notes due 2031 to holders of a like principal amount of 8.63% Senior Notes due 2031 originally issued by PSEG Power who validly tendered their notes pursuant to an offer to exchange. Upon consummation of the offer to exchange, the PSEG Power notes accepted in the exchange were cancelled. The transaction resulted in a non-cash financing activity for both PSEG and PSEG Power. | ||||
[2] | Secured by essentially all property of PSE&G pursuant to its First and Refunding Mortgage. |
Debt and Credit Facilities (Sho
Debt and Credit Facilities (Short-Term Liquidity) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Short-term Debt [Line Items] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 4,200 | |||
Line of Credit Facility, Amount Outstanding | 950 | |||
Available Liquidity | 3,250 | |||
Commercial Paper and Loans | $ 1,063 | $ 1,115 | ||
Commitments of single institution as percentage of total commitments | 9.00% | |||
Proceeds from Short-term Debt | $ 800 | 0 | $ 0 | |
Repayments of Short-term Debt | 500 | 0 | $ 0 | |
PSEG [Member] | ||||
Short-term Debt [Line Items] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | 1,500 | |||
Line of Credit Facility, Amount Outstanding | 665 | |||
Available Liquidity | 835 | |||
Public Service Electric and Gas Company | ||||
Short-term Debt [Line Items] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | 600 | |||
Line of Credit Facility, Amount Outstanding | 117 | |||
Available Liquidity | 483 | |||
Commercial Paper and Loans | 100 | $ 362 | ||
PSEG Power LLC | ||||
Short-term Debt [Line Items] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | 2,100 | |||
Line of Credit Facility, Amount Outstanding | 168 | |||
Available Liquidity | 1,932 | |||
Revolving Credit Facility [Member] | PSEG [Member] | ||||
Short-term Debt [Line Items] | ||||
Commercial Paper and Loans | $ 663 | |||
Short-term Debt, Weighted Average Interest Rate, at Point in Time | 0.33% | |||
Revolving Credit Facility [Member] | Public Service Electric and Gas Company | ||||
Short-term Debt [Line Items] | ||||
Commercial Paper and Loans | $ 100 | |||
Short-term Debt, Weighted Average Interest Rate, at Point in Time | 0.28% | |||
March 2020 Term Loan [Member] | ||||
Short-term Debt [Line Items] | ||||
Proceeds from Short-term Debt | $ 300 | |||
Repayments of Short-term Debt | 300 | |||
April 2020 Term Loan 1 [Member] | ||||
Short-term Debt [Line Items] | ||||
Proceeds from Short-term Debt | 200 | |||
Repayments of Short-term Debt | 200 | |||
April 2020 Term Loan 2 [Member] | ||||
Short-term Debt [Line Items] | ||||
Repayments of Short-term Debt | 300 | |||
Letter of Credit Facilities expiring September 2021 [Member] | PSEG Power LLC | ||||
Short-term Debt [Line Items] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | 100 | |||
Line of Credit Facility, Amount Outstanding | 48 | |||
Available Liquidity | $ 52 | |||
Expiration Date | Sept 2021 | |||
Revolving Credit Facility [Member] | PSEG [Member] | ||||
Short-term Debt [Line Items] | ||||
Credit Facility Reduction | $ 9 | |||
Line of Credit Facility, Maximum Borrowing Capacity | [1] | 1,500 | ||
Line of Credit Facility, Amount Outstanding | [2] | 665 | ||
Available Liquidity | $ 835 | |||
Expiration Date | Mar 2024 | |||
Revolving Credit Facility [Member] | Public Service Electric and Gas Company | ||||
Short-term Debt [Line Items] | ||||
Credit Facility Reduction | $ 4 | |||
Line of Credit Facility, Maximum Borrowing Capacity | [3] | 600 | ||
Line of Credit Facility, Amount Outstanding | [2] | 117 | ||
Available Liquidity | $ 483 | |||
Expiration Date | Mar 2024 | |||
Revolving Credit Facility [Member] | PSEG Power LLC | ||||
Short-term Debt [Line Items] | ||||
Credit Facility Reduction | $ 12 | |||
Line of Credit Facility, Maximum Borrowing Capacity | [4] | 1,900 | ||
Line of Credit Facility, Amount Outstanding | 39 | |||
Available Liquidity | $ 1,861 | |||
Expiration Date | Mar 2024 | |||
Letter of Credit Facilities expiring September 2022 | PSEG Power LLC | ||||
Short-term Debt [Line Items] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 100 | |||
Line of Credit Facility, Amount Outstanding | 81 | |||
Available Liquidity | $ 19 | |||
Expiration Date | Sept 2022 | |||
[1] | PSEG facilities will be reduced by $9 million in March 2022. | |||
[2] | The primary use of PSEG’s and PSE&G’s credit facilities is to support their respective Commercial Paper Programs, under which as of December 31, 2020, PSEG had $663 million outstanding at a weighted average interest rate of 0.33%. PSE&G had $100 million outstanding at a weighted average interest rate of 0.28% under its Commercial Paper Program as of December 31, 2020. | |||
[3] | PSE&G facility will be reduced by $4 million in March 2022 | |||
[4] | PSEG Power facilities will be reduced by $12 million in March 2022 |
Debt and Credit Facilities (Fai
Debt and Credit Facilities (Fair Value of Debt) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | |||
Long-term Debt | $ 16,293 | ||
Long-term Debt, Carrying Value | 16,180 | $ 15,108 | |
Long-term Debt, Fair Value | 19,143 | 16,723 | |
PSEG [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt | 2,946 | 2,450 | |
Long-term Debt, Carrying Value | 2,929 | 2,441 | |
Long-term Debt, Fair Value | [1],[2] | 3,092 | 2,479 |
Public Service Electric and Gas Company | |||
Debt Instrument [Line Items] | |||
Long-term Debt | 10,999 | 9,908 | |
Long-term Debt, Carrying Value | 10,909 | 9,827 | |
Long-term Debt, Fair Value | [1] | 13,372 | 11,107 |
PSEG Power LLC | |||
Debt Instrument [Line Items] | |||
Long-term Debt | 2,348 | 2,850 | |
Long-term Debt, Carrying Value | 2,342 | 2,840 | |
Long-term Debt, Fair Value | [1] | 2,679 | 3,137 |
Loans Payable [Member] | PSEG [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt | $ 0 | $ 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] | Includes a floating-rate term loan of $700 million at PSEG as of December 31, 2019. The fair value of the term loan debt (Level 2 measurement) approximates the carrying value because the interest payments are based on LIBOR rates that are reset monthly and the debt is redeemable at face value by PSEG at any time. |
Schedule Of Consolidated Capi_3
Schedule Of Consolidated Capital Stock (Consolidated Capital Stock) (Details) - USD ($) $ / shares in Units, $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | ||
Class of Stock [Line Items] | ||||
Common Stock, authorized | 1,000,000,000 | 1,000,000,000 | ||
Common Stock, Shares, outstanding | 504,000,000 | 504,000,000 | [1] | |
Common Stock, Value, Outstanding | [1] | $ 4,170 | $ 4,172 | |
Common Stock | $ 5,031 | $ 5,003 | ||
Public Service Electric and Gas Company | ||||
Class of Stock [Line Items] | ||||
Common Stock, authorized | 150,000,000 | 150,000,000 | ||
Common Stock | $ 892 | $ 892 | ||
Public Service Electric and Gas Company | Preferred Stock [Member] | ||||
Class of Stock [Line Items] | ||||
Common Stock, authorized | 7,500,000 | |||
Preferred stock, par value | $ 100 | |||
Public Service Electric and Gas Company | Cumulative Preferred Stock [Member] | ||||
Class of Stock [Line Items] | ||||
Common Stock, authorized | 10,000,000 | |||
Preferred stock, par value | $ 25 | |||
[1] | PSEG did not issue any new shares under the Dividend Reinvestment and Stock Purchase Plan or the Employee Stock Purchase Plan (ESPP) in 2020 or 2019. |
Financial Risk Management Act_3
Financial Risk Management Activities (Narrative) (Detail) $ / mwh in Millions, $ / Derivative in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2020USD ($)$ / Derivative | Dec. 31, 2019USD ($)$ / mwh | ||
Derivatives, Fair Value [Line Items] | |||
Derivative, Fair Value, Net | $ 44 | $ 100 | |
Net cash collateral received in connection with net derivative contracts | 8 | (2) | |
Accumulated Other Comprehensive Income (Loss) on interest rate derivatives | (9) | (15) | |
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | (3) | ||
PSEG Power LLC | |||
Derivatives, Fair Value [Line Items] | |||
Derivative, Fair Value, Net | [1] | 44 | 105 |
Credit Risk Derivative Liabilities, at Fair Value | 28 | 35 | |
Aggregate fair value of derivative contracts in a liability position that contains triggers for additional collateral | 3 | 2 | |
Additional collateral aggregate fair value | $ 25 | $ 33 | |
Interest Rate Swaps [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Underlying, Derivative | $ / mwh | 700 | ||
Interest Rate Swaps [Member] | PSEG [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Underlying, Derivative | $ / mwh | 700 | ||
Interest Rate Swaps [Member] | PSEG [Member] | Designated as Hedging Instrument | |||
Derivatives, Fair Value [Line Items] | |||
Derivative, Fair Value, Net | $ (5) | ||
Interest Rate Swaps [Member] | PSEG [Member] | Term Loan maturing in 2020 [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Underlying, Derivative | $ / Derivative | 700 | ||
Interest Rate Swaps [Member] | PSEG Power LLC | |||
Derivatives, Fair Value [Line Items] | |||
Underlying, Derivative | $ / mwh | 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 December 31, 2020 and 2019. |
Financial Risk Management Act_4
Financial Risk Management Activities (Schedule Of Derivative Instruments Fair Value In Balance Sheets) (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | ||
Derivatives, Fair Value [Line Items] | ||||
Net Cash Collateral/Margin Postings to Counterparties | $ 54 | $ 44 | ||
Derivative, Fair Value, Amount Offset Against Collateral, Net | 8 | (2) | ||
Derivative Contracts, Current Assets | 60 | 113 | ||
Derivative Contracts, Noncurrent Assets | 9 | 24 | ||
Total Mark-to-Market Derivative Assets | 69 | 137 | ||
Derivative Contracts, Current Liabilities | (21) | (36) | ||
Derivative Contracts, Noncurrent Liabilities | (4) | (1) | ||
Total Mark-to-Market Derivative (Liabilities) | (25) | (37) | ||
Net Mark-to-Market Derivative Assets (Liabilities) | 44 | 100 | ||
PSEG Power LLC | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative Contracts, Current Assets | [1] | 60 | 113 | |
Derivative Contracts, Noncurrent Assets | [1] | 9 | 24 | |
Total Mark-to-Market Derivative Assets | [1] | 69 | 137 | |
Derivative Contracts, Current Liabilities | [1] | (21) | (31) | |
Derivative Contracts, Noncurrent Liabilities | [1] | (4) | (1) | |
Total Mark-to-Market Derivative (Liabilities) | [1] | (25) | (32) | |
Net Mark-to-Market Derivative Assets (Liabilities) | [1] | 44 | 105 | |
Current Assets [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative, Fair Value, Amount Offset Against Collateral, Net | (13) | (1) | ||
Noncurrent Assets [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative, Fair Value, Amount Offset Against Collateral, Net | (1) | |||
Interest Rate Swaps [Member] | Designated as Hedging Instrument | PSEG [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative Contracts, Current Assets | 0 | |||
Derivative Contracts, Noncurrent Assets | 0 | |||
Total Mark-to-Market Derivative Assets | 0 | |||
Derivative Contracts, Current Liabilities | (5) | |||
Derivative Contracts, Noncurrent Liabilities | 0 | |||
Total Mark-to-Market Derivative (Liabilities) | (5) | |||
Net Mark-to-Market Derivative Assets (Liabilities) | (5) | |||
Energy-Related Contracts [Member] | PSEG Power LLC | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative, Fair Value, Amount Offset Against Collateral, Net | [1],[2] | 8 | (2) | |
Energy-Related Contracts [Member] | Not Designated as Hedging Instrument [Member] | PSEG Power LLC | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative Contracts, Current Assets | [1] | 464 | 636 | |
Derivative Contracts, Noncurrent Assets | [1] | 93 | 163 | |
Total Mark-to-Market Derivative Assets | [1] | 557 | 799 | |
Derivative Contracts, Current Liabilities | [1] | (412) | (553) | |
Derivative Contracts, Noncurrent Liabilities | [1] | (109) | (139) | |
Total Mark-to-Market Derivative (Liabilities) | [1] | (521) | (692) | |
Net Mark-to-Market Derivative Assets (Liabilities) | [1] | 36 | 107 | |
Energy-Related Contracts [Member] | Current Assets [Member] | PSEG Power LLC | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative, Fair Value, Amount Offset Against Collateral, Net | [1],[2] | (404) | (523) | |
Energy-Related Contracts [Member] | Current Liabilities [Member] | PSEG Power LLC | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative, Fair Value, Amount Offset Against Collateral, Net | [1],[2] | 391 | 522 | |
Energy-Related Contracts [Member] | Noncurrent Liabilities [Member] | PSEG Power LLC | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative, Fair Value, Amount Offset Against Collateral, Net | [1],[2] | 105 | 138 | |
Energy-Related Contracts [Member] | Noncurrent Assets [Member] | PSEG Power LLC | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative, Fair Value, Amount Offset Against Collateral, Net | [1],[2] | (84) | (139) | |
Energy-Related Contracts [Member] | Assets [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative, Fair Value, Amount Offset Against Collateral, Net | [3],[4] | (488) | (662) | |
Energy-Related Contracts [Member] | Assets [Member] | PSEG Power LLC | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative, Fair Value, Amount Offset Against Collateral, Net | [1],[2],[4] | (488) | [3] | (662) |
Energy-Related Contracts [Member] | Other Liabilities [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative, Fair Value, Amount Offset Against Collateral, Net | [3],[4] | 496 | 660 | |
Energy-Related Contracts [Member] | Other Liabilities [Member] | PSEG Power LLC | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative, Fair Value, Amount Offset Against Collateral, Net | [1],[2],[3],[4] | $ 496 | $ 660 | |
[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 December 31, 2020 and 2019. | |||
[2] | Represents the netting of fair value balances with the same counterparty (where the right of offset exists) and the application of cash collateral. All cash collateral (received) posted that has been allocated to derivative positions, where the right of offset exists, has been offset on the Consolidated Balance Sheets. As of December 31, 2020 and 2019, PSEG Power had net cash collateral payments to counterparties of $54 million and $44 million, respectively. Of these net cash collateral (receipts) payments, $8 million as of December 31, 2020 and $(2) million as of December 31, 2019 were netted against the corresponding net derivative contract positions. Of the $8 million as of December 31, 2020, $(13) million was netted against current assets, and $21 million was netted against noncurrent liabilities. Of the $(2) million as of December 31, 2019, $(1) million was netted against current assets and $(1) million was netted against noncurrent assets. | |||
[3] | Level 1—These contracts represent natural gas futures contracts executed on NYMEX, and are being valued solely on settled pricing inputs which come directly from the exchange. Level 2—Fair values for energy-related contracts are obtained primarily using a market-based approach. Most derivative contracts (forward purchase or sale contracts and swaps) are valued using settled prices from similar assets and liabilities from an exchange, such as NYMEX, ICE and Nodal Exchange, or auction prices. Prices used in the valuation process are also corroborated independently by management to determine that values are based on actual transaction data or, in the absence of transactions, bid and offers for the day. Examples may include certain exchange and non-exchange traded capacity and electricity contracts and natural gas physical or swap contracts based on market prices, basis adjustments and other premiums where adjustments and premiums are not considered significant to the overall inputs. Level 3—Unobservable inputs are used for the valuation of certain contracts. See “Additional Information Regarding Level 3 Measurements” below for more information on the utilization of unobservable inputs. | |||
[4] | Represents the netting of fair value balances with the same counterparty (where the right of offset exists) and the application of collateral. See Note 18. Financial Risk Management Activities for additional detail. |
Financial Risk Management Act_5
Financial Risk Management Activities (Schedule Of Derivative Instruments Designated As Cash Flow Hedges) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Pre-Tax Gain (Loss) attributed to Cash Flow Hedges Recognized in AOCI on Derivatives (Effective Portion) | $ (6) | $ (23) | $ (2) |
Amount of Pre-Tax Loss Reclassified from AOCL into Income, Effective Portion | (14) | (4) | 0 |
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) | (4) | 7 | 37 |
Interest Expense [Member] | Interest Rate Swaps [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Pre-Tax Gain (Loss) attributed to Cash Flow Hedges Recognized in AOCI on Derivatives (Effective Portion) | (6) | (23) | (2) |
Amount of Pre-Tax Loss Reclassified from AOCL into Income, Effective Portion | (14) | (4) | 0 |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount Reclassified from AOCI for Cash Flow Hedges, After-Tax | (10) | (3) | |
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) | 10 | 3 | $ 0 |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | Interest Expense [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount Reclassified from AOCI for Cash Flow Hedges, After-Tax | $ (10) | $ (3) |
Financial Risk Management Act_6
Financial Risk Management Activities (Schedule Of Reconciliation For Derivative Activity Included In Accumulated Other Comprehensive Loss) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Derivative [Line Items] | |||
Gain (Loss) Recognized in AOCI, After-Tax | $ (11) | $ (38) | $ (9) |
Less: Gain Reclassified to Income, After-Tax | (4) | 7 | 37 |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | |||
Derivative [Line Items] | |||
Balance as of Beginning of Year | (21) | (2) | |
Gain (Loss) Recognized in AOCI, Pre-Tax | (6) | (23) | |
Less: Gain Reclassified into Income, Pre-Tax | 14 | 4 | |
Balance as of End of Year | (13) | (21) | (2) |
Balance as of Beginning of Year | (15) | (1) | |
Gain (Loss) Recognized in AOCI, After-Tax | (4) | (17) | (1) |
Less: Gain Reclassified to Income, After-Tax | 10 | 3 | 0 |
Balance as of End of Year | $ (9) | $ (15) | $ (1) |
Financial Risk Management Act_7
Financial Risk Management Activities (Schedule Of Derivative Instruments Not Designated As Hedging Instruments And Impact On Results Of Operations) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Pre-Tax Gain (Loss) Recognized in Income on Derivatives | $ 137 | $ 441 | $ (191) |
Operating Revenues [Member] | Energy-Related Contracts [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Pre-Tax Gain (Loss) Recognized in Income on Derivatives | 279 | 560 | (182) |
Energy Costs [Member] | Energy-Related Contracts [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Pre-Tax Gain (Loss) Recognized in Income on Derivatives | $ (142) | $ (119) | $ (9) |
Financial Risk Management Act_8
Financial Risk Management Activities (Schedule Of Gross Volume, On Absolute Basis For Derivative Contracts) (Detail) $ / mwh in Millions, $ / DTH in Millions | 12 Months Ended | |
Dec. 31, 2020$ / mwh$ / DTH | Dec. 31, 2019$ / DTH$ / mwh | |
Natural Gas Dth [Member] | ||
Derivative [Line Items] | ||
Gross volume of derivative on absolute value basis | (321) | (341) |
Electricity MWh [Member] | ||
Derivative [Line Items] | ||
Gross volume of derivative on absolute value basis | (66) | (62) |
FTRs MWh [Member] | ||
Derivative [Line Items] | ||
Gross volume of derivative on absolute value basis | (20) | (13) |
Interest Rate Swaps [Member] | ||
Derivative [Line Items] | ||
Gross volume of derivative on absolute value basis | (700) | |
PSEG [Member] | Natural Gas Dth [Member] | ||
Derivative [Line Items] | ||
Gross volume of derivative on absolute value basis | 0 | 0 |
PSEG [Member] | Electricity MWh [Member] | ||
Derivative [Line Items] | ||
Gross volume of derivative on absolute value basis | 0 | |
PSEG [Member] | FTRs MWh [Member] | ||
Derivative [Line Items] | ||
Gross volume of derivative on absolute value basis | 0 | 0 |
PSEG [Member] | Interest Rate Swaps [Member] | ||
Derivative [Line Items] | ||
Gross volume of derivative on absolute value basis | (700) | |
PSEG Power LLC | Natural Gas Dth [Member] | ||
Derivative [Line Items] | ||
Gross volume of derivative on absolute value basis | $ / DTH | (321) | (341) |
PSEG Power LLC | Electricity MWh [Member] | ||
Derivative [Line Items] | ||
Gross volume of derivative on absolute value basis | (66) | (62) |
PSEG Power LLC | FTRs MWh [Member] | ||
Derivative [Line Items] | ||
Gross volume of derivative on absolute value basis | (20) | (13) |
PSEG Power LLC | Interest Rate Swaps [Member] | ||
Derivative [Line Items] | ||
Gross volume of derivative on absolute value basis | 0 | |
Public Service Electric and Gas Company | Natural Gas Dth [Member] | ||
Derivative [Line Items] | ||
Gross volume of derivative on absolute value basis | $ / DTH | 0 | 0 |
Public Service Electric and Gas Company | Electricity MWh [Member] | ||
Derivative [Line Items] | ||
Gross volume of derivative on absolute value basis | 0 | 0 |
Public Service Electric and Gas Company | FTRs MWh [Member] | ||
Derivative [Line Items] | ||
Gross volume of derivative on absolute value basis | 0 | 0 |
Public Service Electric and Gas Company | Interest Rate Swaps [Member] | ||
Derivative [Line Items] | ||
Gross volume of derivative on absolute value basis | 0 |
Financial Risk Management Act_9
Financial Risk Management Activities (Schedule Providing Credit Risk From Others, Net Of Collateral) (Detail) - PSEG Power LLC $ in Millions | 12 Months Ended |
Dec. 31, 2020USD ($)Counterparty | |
Derivative [Line Items] | |
Current Exposure | $ 377 |
Collateral held from counterparties | 39 |
Net Credit Exposure With Counterparties After Applying Collateral | 338 |
Number of Counterparties greater than 10% | 2 |
Net Exposure of Counterparties greater than 10% | $ 209 |
Number of active counterparties on credit risk derivatives | Counterparty | 135 |
Investment Grade External Rating [Member] | |
Derivative [Line Items] | |
Credit exposure, percentage | 88.00% |
Investment Grade [Member] | |
Derivative [Line Items] | |
Current Exposure | $ 337 |
Collateral held from counterparties | 39 |
Net Credit Exposure With Counterparties After Applying Collateral | 298 |
Number of Counterparties greater than 10% | 1 |
Net Exposure of Counterparties greater than 10% | 169 |
Non-Investment Grade [Member] | |
Derivative [Line Items] | |
Current Exposure | 40 |
Collateral held from counterparties | 0 |
Net Credit Exposure With Counterparties After Applying Collateral | 40 |
Number of Counterparties greater than 10% | 1 |
Net Exposure of Counterparties greater than 10% | 40 |
Cash [Member] | |
Derivative [Line Items] | |
Collateral held from counterparties | 4 |
Letter of Credit [Member] | |
Derivative [Line Items] | |
Collateral held from counterparties | 35 |
Public Service Electric and Gas Company | Investment Grade [Member] | |
Derivative [Line Items] | |
Net Exposure of Counterparties greater than 10% | 169 |
Other [Member] | Investment Grade [Member] | |
Derivative [Line Items] | |
Net Exposure of Counterparties greater than 10% | $ 40 |
Fair Value Measurements (PSEG's
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 | Dec. 31, 2020 | Dec. 31, 2019 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Collateral Already Posted, Aggregate Fair Value | $ 54 | $ 44 | |||
Derivative, Fair Value, Amount Offset Against Collateral, Net | 8 | (2) | |||
Total Mark-to-Market Derivative Assets | 69 | 137 | |||
Total Mark-to-Market Derivative (Liabilities) | (25) | (37) | |||
Cash and foreign currency excluded from Fair Value | 1 | 5 | |||
Equity Securities [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Derivative, Fair Value, Amount Offset Against Collateral, Net | [1],[2] | 0 | 0 | ||
Government Obligations [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Derivative, Fair Value, Amount Offset Against Collateral, Net | [1],[2] | 0 | 0 | ||
US Treasury Obligations [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Derivative, Fair Value, Amount Offset Against Collateral, Net | [1],[2] | 0 | 0 | ||
Corporate Debt Securities [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Derivative, Fair Value, Amount Offset Against Collateral, Net | [1],[2] | 0 | 0 | ||
Rabbi Trust - Equity Securities-Mutual Funds [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Derivative, Fair Value, Amount Offset Against Collateral, Net | [1],[2] | 0 | 0 | ||
Rabbi Trust - Debt Securities-Govt Obligations [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Derivative, Fair Value, Amount Offset Against Collateral, Net | [1],[2] | 0 | 0 | ||
Rabbi Trusts US Treasury Obligations [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Derivative, Fair Value, Amount Offset Against Collateral, Net | [1],[2] | 0 | 0 | ||
Rabbi Trust - Debt Securities-Corporate [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Derivative, Fair Value, Amount Offset Against Collateral, Net | [1],[2] | 0 | 0 | ||
PSEG Power LLC | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total Mark-to-Market Derivative Assets | [3] | 69 | 137 | ||
Total Mark-to-Market Derivative (Liabilities) | [3] | (25) | (32) | ||
PSEG Power LLC | Equity Securities [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Derivative, Fair Value, Amount Offset Against Collateral, Net | [1],[2] | 0 | 0 | ||
PSEG Power LLC | Government Obligations [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Derivative, Fair Value, Amount Offset Against Collateral, Net | [1],[2] | 0 | 0 | ||
PSEG Power LLC | US Treasury Obligations [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Derivative, Fair Value, Amount Offset Against Collateral, Net | [1],[2] | 0 | 0 | ||
PSEG Power LLC | Corporate Debt Securities [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Derivative, Fair Value, Amount Offset Against Collateral, Net | [1],[2] | 0 | 0 | ||
PSEG Power LLC | Rabbi Trust - Equity Securities-Mutual Funds [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Derivative, Fair Value, Amount Offset Against Collateral, Net | [1],[2] | 0 | 0 | ||
PSEG Power LLC | Rabbi Trust - Debt Securities-Govt Obligations [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Derivative, Fair Value, Amount Offset Against Collateral, Net | [1],[2] | 0 | 0 | ||
PSEG Power LLC | Rabbi Trusts US Treasury Obligations [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Derivative, Fair Value, Amount Offset Against Collateral, Net | [1],[2] | 0 | 0 | ||
PSEG Power LLC | Rabbi Trust - Debt Securities-Corporate [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Derivative, Fair Value, Amount Offset Against Collateral, Net | [1],[2] | 0 | 0 | ||
Public Service Electric and Gas Company | Rabbi Trust - Equity Securities-Mutual Funds [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Derivative, Fair Value, Amount Offset Against Collateral, Net | [1],[2] | 0 | 0 | ||
Public Service Electric and Gas Company | Rabbi Trust - Debt Securities-Govt Obligations [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Derivative, Fair Value, Amount Offset Against Collateral, Net | [1],[2] | 0 | 0 | ||
Public Service Electric and Gas Company | Rabbi Trusts US Treasury Obligations [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Derivative, Fair Value, Amount Offset Against Collateral, Net | [1],[2] | 0 | 0 | ||
Public Service Electric and Gas Company | Rabbi Trust - Debt Securities-Corporate [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Derivative, Fair Value, Amount Offset Against Collateral, Net | [1],[2] | 0 | 0 | ||
Quoted Market Prices for Identical Assets (Level 1) [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Cash Equivalents | [4] | 312 | 50 | ||
Quoted Market Prices for Identical Assets (Level 1) [Member] | Equity Securities [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair Value, Measured on Recurring Basis, Investments | [1] | 1,351 | 1,150 | ||
Quoted Market Prices for Identical Assets (Level 1) [Member] | Government Obligations [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair Value, Measured on Recurring Basis, Investments | [1] | 0 | 0 | ||
Quoted Market Prices for Identical Assets (Level 1) [Member] | US Treasury Obligations [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair Value, Measured on Recurring Basis, Investments | [1] | 0 | 0 | ||
Quoted Market Prices for Identical Assets (Level 1) [Member] | Corporate Debt Securities [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair Value, Measured on Recurring Basis, Investments | [1] | 0 | 0 | ||
Quoted Market Prices for Identical Assets (Level 1) [Member] | Rabbi Trust - Equity Securities-Mutual Funds [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair Value, Measured on Recurring Basis, Investments | [1] | 31 | 28 | ||
Quoted Market Prices for Identical Assets (Level 1) [Member] | Rabbi Trust - Debt Securities-Govt Obligations [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair Value, Measured on Recurring Basis, Investments | [1] | 0 | 0 | ||
Quoted Market Prices for Identical Assets (Level 1) [Member] | Rabbi Trusts US Treasury Obligations [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair Value, Measured on Recurring Basis, Investments | [1] | 0 | 0 | ||
Quoted Market Prices for Identical Assets (Level 1) [Member] | Rabbi Trust - Debt Securities-Corporate [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair Value, Measured on Recurring Basis, Investments | [1] | 0 | 0 | ||
Quoted Market Prices for Identical Assets (Level 1) [Member] | PSEG Power LLC | Equity Securities [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair Value, Measured on Recurring Basis, Investments | [1] | 1,351 | 1,150 | ||
Quoted Market Prices for Identical Assets (Level 1) [Member] | PSEG Power LLC | Government Obligations [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair Value, Measured on Recurring Basis, Investments | [1] | 0 | 0 | ||
Quoted Market Prices for Identical Assets (Level 1) [Member] | PSEG Power LLC | US Treasury Obligations [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair Value, Measured on Recurring Basis, Investments | [1] | 0 | 0 | ||
Quoted Market Prices for Identical Assets (Level 1) [Member] | PSEG Power LLC | Corporate Debt Securities [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair Value, Measured on Recurring Basis, Investments | [1] | 0 | 0 | ||
Quoted Market Prices for Identical Assets (Level 1) [Member] | PSEG Power LLC | Rabbi Trust - Equity Securities-Mutual Funds [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair Value, Measured on Recurring Basis, Investments | [1] | 8 | 8 | ||
Quoted Market Prices for Identical Assets (Level 1) [Member] | PSEG Power LLC | Rabbi Trust - Debt Securities-Govt Obligations [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair Value, Measured on Recurring Basis, Investments | [1] | 0 | 0 | ||
Quoted Market Prices for Identical Assets (Level 1) [Member] | PSEG Power LLC | Rabbi Trusts US Treasury Obligations [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair Value, Measured on Recurring Basis, Investments | [1] | 0 | 0 | ||
Quoted Market Prices for Identical Assets (Level 1) [Member] | PSEG Power LLC | Rabbi Trust - Debt Securities-Corporate [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair Value, Measured on Recurring Basis, Investments | [1] | 0 | 0 | ||
Quoted Market Prices for Identical Assets (Level 1) [Member] | Public Service Electric and Gas Company | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Cash Equivalents | 50 | ||||
Quoted Market Prices for Identical Assets (Level 1) [Member] | Public Service Electric and Gas Company | Rabbi Trust - Equity Securities-Mutual Funds [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair Value, Measured on Recurring Basis, Investments | [1] | 6 | 5 | ||
Quoted Market Prices for Identical Assets (Level 1) [Member] | Public Service Electric and Gas Company | Rabbi Trust - Debt Securities-Govt Obligations [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair Value, Measured on Recurring Basis, Investments | [1] | 0 | 0 | ||
Quoted Market Prices for Identical Assets (Level 1) [Member] | Public Service Electric and Gas Company | Rabbi Trusts US Treasury Obligations [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair Value, Measured on Recurring Basis, Investments | [1] | 0 | 0 | ||
Quoted Market Prices for Identical Assets (Level 1) [Member] | Public Service Electric and Gas Company | Rabbi Trust - Debt Securities-Corporate [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair Value, Measured on Recurring Basis, Investments | [1] | 0 | 0 | ||
Significant Other Observable Inputs (Level 2) [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Cash Equivalents | [4] | 0 | 0 | ||
Significant Other Observable Inputs (Level 2) [Member] | Equity Securities [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair Value, Measured on Recurring Basis, Investments | [1] | 1 | 1 | ||
Significant Other Observable Inputs (Level 2) [Member] | Government Obligations [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair Value, Measured on Recurring Basis, Investments | [1] | 342 | 352 | ||
Significant Other Observable Inputs (Level 2) [Member] | US Treasury Obligations [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair Value, Measured on Recurring Basis, Investments | [1] | 239 | 225 | ||
Significant Other Observable Inputs (Level 2) [Member] | Corporate Debt Securities [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair Value, Measured on Recurring Basis, Investments | [1] | 566 | 486 | ||
Significant Other Observable Inputs (Level 2) [Member] | Rabbi Trust - Equity Securities-Mutual Funds [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair Value, Measured on Recurring Basis, Investments | [1] | 0 | 0 | ||
Significant Other Observable Inputs (Level 2) [Member] | Rabbi Trust - Debt Securities-Govt Obligations [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair Value, Measured on Recurring Basis, Investments | [1] | 41 | 47 | ||
Significant Other Observable Inputs (Level 2) [Member] | Rabbi Trusts US Treasury Obligations [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair Value, Measured on Recurring Basis, Investments | [1] | 59 | 57 | ||
Significant Other Observable Inputs (Level 2) [Member] | Rabbi Trust - Debt Securities-Corporate [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair Value, Measured on Recurring Basis, Investments | [1] | 135 | 114 | ||
Significant Other Observable Inputs (Level 2) [Member] | PSEG Power LLC | Equity Securities [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair Value, Measured on Recurring Basis, Investments | [1] | 1 | 1 | ||
Significant Other Observable Inputs (Level 2) [Member] | PSEG Power LLC | Government Obligations [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair Value, Measured on Recurring Basis, Investments | [1] | 342 | 352 | ||
Significant Other Observable Inputs (Level 2) [Member] | PSEG Power LLC | US Treasury Obligations [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair Value, Measured on Recurring Basis, Investments | [1] | 239 | 225 | ||
Significant Other Observable Inputs (Level 2) [Member] | PSEG Power LLC | Corporate Debt Securities [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair Value, Measured on Recurring Basis, Investments | [1] | 566 | 486 | ||
Significant Other Observable Inputs (Level 2) [Member] | PSEG Power LLC | Rabbi Trust - Equity Securities-Mutual Funds [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair Value, Measured on Recurring Basis, Investments | [1] | 0 | 0 | ||
Significant Other Observable Inputs (Level 2) [Member] | PSEG Power LLC | Rabbi Trust - Debt Securities-Govt Obligations [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair Value, Measured on Recurring Basis, Investments | [1] | 10 | 12 | ||
Significant Other Observable Inputs (Level 2) [Member] | PSEG Power LLC | Rabbi Trusts US Treasury Obligations [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair Value, Measured on Recurring Basis, Investments | [1] | 15 | 14 | ||
Significant Other Observable Inputs (Level 2) [Member] | PSEG Power LLC | Rabbi Trust - Debt Securities-Corporate [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair Value, Measured on Recurring Basis, Investments | [1] | 33 | 28 | ||
Significant Other Observable Inputs (Level 2) [Member] | Public Service Electric and Gas Company | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Cash Equivalents | 0 | ||||
Significant Other Observable Inputs (Level 2) [Member] | Public Service Electric and Gas Company | Rabbi Trust - Equity Securities-Mutual Funds [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair Value, Measured on Recurring Basis, Investments | [1] | 0 | 0 | ||
Significant Other Observable Inputs (Level 2) [Member] | Public Service Electric and Gas Company | Rabbi Trust - Debt Securities-Govt Obligations [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair Value, Measured on Recurring Basis, Investments | [1] | 8 | 9 | ||
Significant Other Observable Inputs (Level 2) [Member] | Public Service Electric and Gas Company | Rabbi Trusts US Treasury Obligations [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair Value, Measured on Recurring Basis, Investments | [1] | 11 | 11 | ||
Significant Other Observable Inputs (Level 2) [Member] | Public Service Electric and Gas Company | Rabbi Trust - Debt Securities-Corporate [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair Value, Measured on Recurring Basis, Investments | [1] | 26 | 23 | ||
Significant Unobservable Inputs (Level 3) [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Cash Equivalents | [4] | 0 | 0 | ||
Significant Unobservable Inputs (Level 3) [Member] | Equity Securities [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair Value, Measured on Recurring Basis, Investments | [1] | 0 | 0 | ||
Significant Unobservable Inputs (Level 3) [Member] | Government Obligations [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair Value, Measured on Recurring Basis, Investments | [1] | 0 | 0 | ||
Significant Unobservable Inputs (Level 3) [Member] | US Treasury Obligations [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair Value, Measured on Recurring Basis, Investments | [1] | 0 | 0 | ||
Significant Unobservable Inputs (Level 3) [Member] | Corporate Debt Securities [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair Value, Measured on Recurring Basis, Investments | [1] | 0 | 0 | ||
Significant Unobservable Inputs (Level 3) [Member] | Rabbi Trust - Equity Securities-Mutual Funds [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair Value, Measured on Recurring Basis, Investments | [1] | 0 | 0 | ||
Significant Unobservable Inputs (Level 3) [Member] | Rabbi Trust - Debt Securities-Govt Obligations [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair Value, Measured on Recurring Basis, Investments | [1] | 0 | 0 | ||
Significant Unobservable Inputs (Level 3) [Member] | Rabbi Trusts US Treasury Obligations [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair Value, Measured on Recurring Basis, Investments | [1] | 0 | 0 | ||
Significant Unobservable Inputs (Level 3) [Member] | Rabbi Trust - Debt Securities-Corporate [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair Value, Measured on Recurring Basis, Investments | [1] | 0 | 0 | ||
Significant Unobservable Inputs (Level 3) [Member] | PSEG Power LLC | Equity Securities [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair Value, Measured on Recurring Basis, Investments | [1] | 0 | 0 | ||
Significant Unobservable Inputs (Level 3) [Member] | PSEG Power LLC | Government Obligations [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair Value, Measured on Recurring Basis, Investments | [1] | 0 | 0 | ||
Significant Unobservable Inputs (Level 3) [Member] | PSEG Power LLC | US Treasury Obligations [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair Value, Measured on Recurring Basis, Investments | [1] | 0 | 0 | ||
Significant Unobservable Inputs (Level 3) [Member] | PSEG Power LLC | Corporate Debt Securities [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair Value, Measured on Recurring Basis, Investments | [1] | 0 | 0 | ||
Significant Unobservable Inputs (Level 3) [Member] | PSEG Power LLC | Rabbi Trust - Equity Securities-Mutual Funds [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair Value, Measured on Recurring Basis, Investments | [1] | 0 | 0 | ||
Significant Unobservable Inputs (Level 3) [Member] | PSEG Power LLC | Rabbi Trust - Debt Securities-Govt Obligations [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair Value, Measured on Recurring Basis, Investments | [1] | 0 | 0 | ||
Significant Unobservable Inputs (Level 3) [Member] | PSEG Power LLC | Rabbi Trusts US Treasury Obligations [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair Value, Measured on Recurring Basis, Investments | [1] | 0 | 0 | ||
Significant Unobservable Inputs (Level 3) [Member] | PSEG Power LLC | Rabbi Trust - Debt Securities-Corporate [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair Value, Measured on Recurring Basis, Investments | [1] | 0 | 0 | ||
Significant Unobservable Inputs (Level 3) [Member] | Public Service Electric and Gas Company | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Cash Equivalents | 0 | ||||
Significant Unobservable Inputs (Level 3) [Member] | Public Service Electric and Gas Company | Rabbi Trust - Equity Securities-Mutual Funds [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair Value, Measured on Recurring Basis, Investments | [1] | 0 | 0 | ||
Significant Unobservable Inputs (Level 3) [Member] | Public Service Electric and Gas Company | Rabbi Trust - Debt Securities-Govt Obligations [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair Value, Measured on Recurring Basis, Investments | [1] | 0 | 0 | ||
Significant Unobservable Inputs (Level 3) [Member] | Public Service Electric and Gas Company | Rabbi Trusts US Treasury Obligations [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair Value, Measured on Recurring Basis, Investments | [1] | 0 | 0 | ||
Significant Unobservable Inputs (Level 3) [Member] | Public Service Electric and Gas Company | Rabbi Trust - Debt Securities-Corporate [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair Value, Measured on Recurring Basis, Investments | [1] | 0 | 0 | ||
Energy-Related Contracts [Member] | PSEG Power LLC | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Derivative, Fair Value, Amount Offset Against Collateral, Net | [3],[5] | 8 | (2) | ||
Energy-Related Contracts [Member] | Quoted Market Prices for Identical Assets (Level 1) [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total Mark-to-Market Derivative Assets | [6] | 26 | 19 | ||
Total Mark-to-Market Derivative (Liabilities) | [6] | (33) | (43) | ||
Energy-Related Contracts [Member] | Quoted Market Prices for Identical Assets (Level 1) [Member] | PSEG Power LLC | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total Mark-to-Market Derivative Assets | 26 | [6] | 19 | [4] | |
Total Mark-to-Market Derivative (Liabilities) | [6] | (33) | (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 | [6] | 519 | 770 | ||
Total Mark-to-Market Derivative (Liabilities) | [6] | (483) | (646) | ||
Energy-Related Contracts [Member] | Significant Other Observable Inputs (Level 2) [Member] | PSEG Power LLC | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total Mark-to-Market Derivative Assets | 519 | [6] | 770 | [4] | |
Total Mark-to-Market Derivative (Liabilities) | [6] | (483) | 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 | [6] | 12 | 10 | ||
Total Mark-to-Market Derivative (Liabilities) | [6] | (5) | (3) | ||
Energy-Related Contracts [Member] | Significant Unobservable Inputs (Level 3) [Member] | PSEG Power LLC | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total Mark-to-Market Derivative Assets | 12 | [6] | 10 | [4] | |
Total Mark-to-Market Derivative (Liabilities) | [6] | (5) | (3) | ||
Interest Rate Swaps [Member] | Quoted Market Prices for Identical Assets (Level 1) [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total Mark-to-Market Derivative (Liabilities) | [7] | 0 | |||
Interest Rate Swaps [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) | [7] | (5) | |||
Interest Rate Swaps [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) | [7] | 0 | |||
Cash and Cash Equivalents [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Derivative, Fair Value, Amount Offset Against Collateral, Net | [2],[4] | 0 | 0 | ||
Cash and Cash Equivalents [Member] | Public Service Electric and Gas Company | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Derivative, Fair Value, Amount Offset Against Collateral, Net | [2] | 0 | |||
Assets [Member] | Energy-Related Contracts [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Derivative, Fair Value, Amount Offset Against Collateral, Net | [2],[6] | (488) | (662) | ||
Assets [Member] | Energy-Related Contracts [Member] | PSEG Power LLC | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Derivative, Fair Value, Amount Offset Against Collateral, Net | [2],[3],[5] | (488) | [6] | (662) | |
Other Liabilities [Member] | Energy-Related Contracts [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Derivative, Fair Value, Amount Offset Against Collateral, Net | [2],[6] | 496 | 660 | ||
Other Liabilities [Member] | Energy-Related Contracts [Member] | PSEG Power LLC | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Derivative, Fair Value, Amount Offset Against Collateral, Net | [2],[3],[5],[6] | 496 | 660 | ||
Other Liabilities [Member] | Interest Rate Swaps [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Derivative, Fair Value, Amount Offset Against Collateral, Net | [2] | 0 | |||
Total Estimate Of Fair Value [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Cash Equivalents | [4] | 312 | 50 | ||
Total Estimate Of Fair Value [Member] | Equity Securities [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair Value, Measured on Recurring Basis, Investments | [1] | 1,352 | 1,151 | ||
Total Estimate Of Fair Value [Member] | Government Obligations [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair Value, Measured on Recurring Basis, Investments | [1] | 342 | 352 | ||
Total Estimate Of Fair Value [Member] | US Treasury Obligations [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair Value, Measured on Recurring Basis, Investments | [1] | 239 | 225 | ||
Total Estimate Of Fair Value [Member] | Corporate Debt Securities [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair Value, Measured on Recurring Basis, Investments | [1] | 566 | 486 | ||
Total Estimate Of Fair Value [Member] | Rabbi Trust - Equity Securities-Mutual Funds [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair Value, Measured on Recurring Basis, Investments | [1] | 31 | 28 | ||
Total Estimate Of Fair Value [Member] | Rabbi Trust - Debt Securities-Govt Obligations [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair Value, Measured on Recurring Basis, Investments | [1] | 41 | 47 | ||
Total Estimate Of Fair Value [Member] | Rabbi Trusts US Treasury Obligations [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair Value, Measured on Recurring Basis, Investments | [1] | 59 | 57 | ||
Total Estimate Of Fair Value [Member] | Rabbi Trust - Debt Securities-Corporate [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair Value, Measured on Recurring Basis, Investments | [1] | 135 | 114 | ||
Total Estimate Of Fair Value [Member] | PSEG Power LLC | Equity Securities [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair Value, Measured on Recurring Basis, Investments | [1] | 1,352 | 1,151 | ||
Total Estimate Of Fair Value [Member] | PSEG Power LLC | Government Obligations [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair Value, Measured on Recurring Basis, Investments | [1] | 342 | 352 | ||
Total Estimate Of Fair Value [Member] | PSEG Power LLC | US Treasury Obligations [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair Value, Measured on Recurring Basis, Investments | [1] | 239 | 225 | ||
Total Estimate Of Fair Value [Member] | PSEG Power LLC | Corporate Debt Securities [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair Value, Measured on Recurring Basis, Investments | [1] | 566 | 486 | ||
Total Estimate Of Fair Value [Member] | PSEG Power LLC | Rabbi Trust - Equity Securities-Mutual Funds [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair Value, Measured on Recurring Basis, Investments | [1] | 8 | 8 | ||
Total Estimate Of Fair Value [Member] | PSEG Power LLC | Rabbi Trust - Debt Securities-Govt Obligations [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair Value, Measured on Recurring Basis, Investments | [1] | 10 | 12 | ||
Total Estimate Of Fair Value [Member] | PSEG Power LLC | Rabbi Trusts US Treasury Obligations [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair Value, Measured on Recurring Basis, Investments | [1] | 15 | 14 | ||
Total Estimate Of Fair Value [Member] | PSEG Power LLC | Rabbi Trust - Debt Securities-Corporate [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair Value, Measured on Recurring Basis, Investments | [1] | 33 | 28 | ||
Total Estimate Of Fair Value [Member] | Public Service Electric and Gas Company | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Cash Equivalents | 50 | ||||
Total Estimate Of Fair Value [Member] | Public Service Electric and Gas Company | Rabbi Trust - Equity Securities-Mutual Funds [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair Value, Measured on Recurring Basis, Investments | [1] | 6 | 5 | ||
Total Estimate Of Fair Value [Member] | Public Service Electric and Gas Company | Rabbi Trust - Debt Securities-Govt Obligations [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair Value, Measured on Recurring Basis, Investments | [1] | 8 | 9 | ||
Total Estimate Of Fair Value [Member] | Public Service Electric and Gas Company | Rabbi Trusts US Treasury Obligations [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair Value, Measured on Recurring Basis, Investments | [1] | 11 | 11 | ||
Total Estimate Of Fair Value [Member] | Public Service Electric and Gas Company | Rabbi Trust - Debt Securities-Corporate [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair Value, Measured on Recurring Basis, Investments | [1] | 26 | 23 | ||
Total Estimate Of Fair Value [Member] | Energy-Related Contracts [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total Mark-to-Market Derivative Assets | [6] | 69 | 137 | ||
Total Mark-to-Market Derivative (Liabilities) | [6] | (25) | (32) | ||
Total Estimate Of Fair Value [Member] | Energy-Related Contracts [Member] | PSEG Power LLC | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total Mark-to-Market Derivative Assets | [6] | 69 | 137 | ||
Total Mark-to-Market Derivative (Liabilities) | [6] | (25) | (32) | ||
Total Estimate Of Fair Value [Member] | Interest Rate Swaps [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total Mark-to-Market Derivative (Liabilities) | [7] | (5) | |||
Nuclear Decommissioning Trust (NDT) Fund [Member] | PSEG Power LLC | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
NDT Fund Foreign Currency | 2 | ||||
Cash and foreign currency excluded from Fair Value | 2 | 2 | |||
Nuclear Decommissioning Trust (NDT) Fund [Member] | PSEG Power LLC | Equity Securities [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Cost | 907 | 825 | |||
Nuclear Decommissioning Trust (NDT) Fund [Member] | PSEG Power LLC | Domestic Equity Securities [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Cost | $ 519 | $ 425 | |||
[1] | As of December 31, 2020 and 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. | ||||
[2] | Represents the netting of fair value balances with the same counterparty (where the right of offset exists) and the application of collateral. See Note 18. Financial Risk Management Activities for additional detail. | ||||
[3] | 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 December 31, 2020 and 2019. | ||||
[4] | Represents money market mutual funds. | ||||
[5] | Represents the netting of fair value balances with the same counterparty (where the right of offset exists) and the application of cash collateral. All cash collateral (received) posted that has been allocated to derivative positions, where the right of offset exists, has been offset on the Consolidated Balance Sheets. As of December 31, 2020 and 2019, PSEG Power had net cash collateral payments to counterparties of $54 million and $44 million, respectively. Of these net cash collateral (receipts) payments, $8 million as of December 31, 2020 and $(2) million as of December 31, 2019 were netted against the corresponding net derivative contract positions. Of the $8 million as of December 31, 2020, $(13) million was netted against current assets, and $21 million was netted against noncurrent liabilities. Of the $(2) million as of December 31, 2019, $(1) million was netted against current assets and $(1) million was netted against noncurrent assets. | ||||
[6] | Level 1—These contracts represent natural gas futures contracts executed on NYMEX, and are being valued solely on settled pricing inputs which come directly from the exchange. Level 2—Fair values for energy-related contracts are obtained primarily using a market-based approach. Most derivative contracts (forward purchase or sale contracts and swaps) are valued using settled prices from similar assets and liabilities from an exchange, such as NYMEX, ICE and Nodal Exchange, or auction prices. Prices used in the valuation process are also corroborated independently by management to determine that values are based on actual transaction data or, in the absence of transactions, bid and offers for the day. Examples may include certain exchange and non-exchange traded capacity and electricity contracts and natural gas physical or swap contracts based on market prices, basis adjustments and other premiums where adjustments and premiums are not considered significant to the overall inputs. Level 3—Unobservable inputs are used for the valuation of certain contracts. See “Additional Information Regarding Level 3 Measurements” below for more information on the utilization of unobservable inputs. | ||||
[7] | Interest rate swaps are valued using quoted prices on commonly quoted intervals, which are interpolated for periods different than the quoted intervals, as inputs to a market valuation model. Market inputs can generally be verified and model selection does not involve significant management judgment. |
Fair Value Measurements (Schedu
Fair Value Measurements (Schedule Of Quantitative Information About Level 3 Fair Value Measurements) (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Assets, Fair Value Disclosure | $ 12 | $ 10 |
Liabilities, Fair Value Disclosure | (5) | (3) |
PSEG Power LLC | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Assets, Fair Value Disclosure | 12 | 10 |
Liabilities, Fair Value Disclosure | (5) | (3) |
Electric Load Contracts [Member] | PSEG Power LLC | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Assets, Fair Value Disclosure | 12 | 10 |
Liabilities, Fair Value Disclosure | $ 0 | $ 0 |
Valuation Technique used | Discounted Cash flow | Discounted Cash flow |
Fair Value Measurement With Significant Unobservable Inputs | Load Shaping Cost | Historic Load Variability |
Historic Load Variability | 4.00% | |
Electric Load Contracts [Member] | PSEG Power LLC | Minimum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Historic Load Variability | 0.00% | |
Load Shaping Cost | 0.00% | |
Electric Load Contracts [Member] | PSEG Power LLC | Maximum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Historic Load Variability | 10.00% | |
Load Shaping Cost | 11.00% | |
Gas Physical Contract [Member] | PSEG Power LLC | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Assets, Fair Value Disclosure | $ 0 | $ 0 |
Liabilities, Fair Value Disclosure | $ (2) | $ (3) |
Valuation Technique used | Discounted Cash flow | Discounted Cash flow |
Fair Value Measurement With Significant Unobservable Inputs | Historical Basis Adjustment | Average Historical Basis |
Average Historical Basis | (43.00%) | |
Gas Physical Contract [Member] | PSEG Power LLC | Minimum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Average Historical Basis | (60.00%) | 50.00% |
Gas Physical Contract [Member] | PSEG Power LLC | Maximum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Average Historical Basis | (30.00%) | |
Other (Futures Contracts) [Member] | PSEG Power LLC | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Assets, Fair Value Disclosure | $ 0 | |
Liabilities, Fair Value Disclosure | $ (3) |
Fair Value Measurements (Change
Fair Value Measurements (Changes In Level 3 Assets And (Liabilities) Measured At Fair Value On A Recurring Basis) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Net Assets Measured At Fair Value On A Recurring Basis | $ 3,100 | $ 2,600 | |
Net Assets Measured At Fair Value On A Recurring Basis Measured Using Unobservable Input And Classified As Level3 | 7 | 7 | |
PSEG Power LLC | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Included in Income | 16 | 14 | |
Unrealized Gains (Losses) | 2 | 6 | |
Net Derivative Assets (Liabilities) [Member] | PSEG Power LLC | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Opening Balance | 7 | 1 | |
Included in Income | [1] | 16 | 14 |
Purchases, (Sales) | 0 | 0 | |
Issuances (Settlements) | [2] | (16) | (8) |
Transfers In (Out) | [3] | 0 | 0 |
Closing Balance | 7 | 7 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Settlements | (14) | (7) | |
Operating Revenues [Member] | PSEG Power LLC | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Included in Income | 26 | 23 | |
Unrealized Gains (Losses) | 1 | 12 | |
Energy Costs [Member] | PSEG Power LLC | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Included in Income | 1 | (6) | |
Unrealized Gains (Losses) | $ (10) | $ (9) | |
[1] | Unrealized gains (losses) in the following table represent the change in derivative assets and liabilities still held as of December 31, 2020 and 2019. Years Ended December 31, 2020 2019 Total Gains (Losses) Unrealized Gains (Losses) Total Gains (Losses) Unrealized Gains (Losses) Millions PSEG and PSEG Power Operating Revenues $ 26 $ 1 $ 23 $ 12 Energy Costs (10) 1 (9) (6) Total $ 16 $ 2 $ 14 $ 6 | ||
[2] | Includes $(14) million and $(7) million in settlements for derivative contracts in 2020 and 2019. | ||
[3] | There were no transfers in 2020 and 2019 to or from Level 3. |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Value Disclosures [Abstract] | ||
Net Assets Measured At Fair Value On A Recurring Basis | $ 3,100 | $ 2,600 |
Net Assets Measured At Fair Value On A Recurring Basis Measured Using Unobservable Input And Classified As Level3 | $ 7 | $ 7 |
Stock Based Compensation (Accru
Stock Based Compensation (Accrual Adjustments) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Payment Arrangement [Abstract] | |||
Compensation Costs included in O&M Expense | $ 35 | $ 33 | $ 30 |
Income Tax Benefit Recognized in Consolidated Statement of Operations | 10 | 9 | 9 |
Excess Tax Benefits | $ 2 | $ 5 | $ 3 |
Stock Based Compensation (Optio
Stock Based Compensation (Options Exercised) (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Payment Arrangement [Abstract] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 231,933 | ||
Total Intrinsic Value of Options Exercised | $ 0 | $ 5 | $ 2 |
Cash Received from Options Exercised | 0 | 8 | 4 |
Tax Benefit Realized from Options Exercised | $ 0 | $ 1 | $ 0 |
Share-based Payment Arrangement, Option, Exercise Price Range, Outstanding, Weighted Average Exercise Price | $ 33.49 |
Stock Based Compensation (Restr
Stock Based Compensation (Restricted Stock Units Activity) (Details) - Restricted Stock Units (RSUs) [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Shares, Outstanding at Beginning of Year | 214,981 | ||
Shares, Granted | 219,749 | ||
Shares, Vested | (203,032) | ||
Shares, Canceled | (8,800) | ||
Shares, Outstanding at End of Year | 222,898 | 214,981 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |||
Shares, Outstanding at Beginning of Year, Weighted Average Grant Date Fair Value | $ 50.41 | ||
Shares, Granted, Weighted Average Grant Date Fair Value | 58.85 | $ 56.24 | $ 49.34 |
Shares, Vested, Weighted Average Grant Date Fair Value | 55.20 | ||
Shares, Canceled, Weighted Average Grant Date Fair Value | 54.13 | ||
Shares, Outstanding at End of Year, Weighted Average Grant Date Fair Value | $ 54.21 | $ 50.41 | |
Shares, Outstanding at End of Year, Weighted Average Remaining Years Contractual Term | 10 months 24 days | ||
Shares, Outstanding at End of Year, Aggregate Intrinsic Value | $ 12,994,953 |
Stock Based Compensation (Perfo
Stock Based Compensation (Performance Units Information) (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |||
Performance Share Risk Free Rate Assumption | 1.36% | 2.47% | 2.36% |
Performance Share Volatility Rate Assumption | 15.00% | 16.74% | 17.57% |
Performance Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average period for recognizing unrecognized compensation cost | 1 year 8 months 12 days | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Shares, Outstanding at Beginning of Year | 334,515 | ||
Shares, Granted | 447,815 | ||
Shares, Vested | (285,977) | ||
Shares, Canceled | (20,512) | ||
Shares, Outstanding at End of Year | 475,841 | 334,515 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |||
Shares, Outstanding at Beginning of Year, Weighted Average Grant Date Fair Value | $ 59.30 | ||
Shares, Granted, Weighted Average Grant Date Fair Value | 51.79 | $ 62.17 | $ 54.95 |
Shares, Vested, Weighted Average Grant Date Fair Value | 54.96 | ||
Shares, Cancelled, Weighted Average Grant Date Fair Value | 58.37 | ||
Shares, Outstanding at End of Year, Weighted Average Grant Date Fair Value | $ 54.88 | $ 59.30 | |
Shares, Outstanding at End of Year, Weighted Average Remaining Years Contractual Term | 1 year 8 months 12 days | ||
Shares, Outstanding at End of Year, Aggregate Intrinsic Value | $ 27,741,530 | ||
Performance Units [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |||
Options vesting period | 3 years |
Stock Based Compensation (Narra
Stock Based Compensation (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Excess Tax Benefits | $ 2 | $ 5 | $ 3 |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 16,000,000 | ||
Percentage Of Fair Market Value Being Expected Purchase Price Of Employee Stock Purchase Plan | 95.00% | ||
Minimum Holding Period for Stock Purchased through Employee Stock Purchase Plan | 3 months | ||
Percentage Of Fair Market Value Being Expected Purchase Price Of Employee Stock Purchase Plan Non Represented | 90.00% | ||
Maximum Percentage Limit Of Base Pay For Employees For Purchasing Shares | 10.00% | ||
Employee Stock Ownership Plan (ESOP), Compensation Expense | $ 1 | $ 1 | |
Shares issued under employee stock purchase plan | 373,682 | 280,077 | 286,559 |
Shares issued under employee purchase plan, Average price per share | $ 47.26 | $ 54.67 | $ 47.44 |
Various [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 13,000,000 | ||
Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average grant date fair value of granted shares | $ 58.85 | $ 56.24 | $ 49.34 |
Unrecognized compensation cost related to stock options expected to be recognized | $ 4 | ||
Weighted average period for recognizing unrecognized compensation cost | 10 months 24 days | ||
Total intrinsic value of restricted stock units vested | $ 11 | $ 16 | $ 12 |
Dividend equivalents accrued on stock units | 25,920 | ||
Performance Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average grant date fair value of granted shares | $ 51.79 | $ 62.17 | $ 54.95 |
Total intrinsic value of performance units vested | $ 19 | $ 17 | $ 17 |
Unrecognized compensation cost related to stock options expected to be recognized | $ 24 | ||
Weighted average period for recognizing unrecognized compensation cost | 1 year 8 months 12 days | ||
Dividend equivalents accrued on stock units | 42,925 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 100.00% | ||
Employee Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 2,200,000 | ||
Minimum | Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 1 year | ||
Minimum | Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options vesting period | 3 years | ||
Minimum | Performance Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 0.00% | ||
Maximum [Member] | Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options vesting period | 4 years | ||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | ||
Maximum [Member] | Performance Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options vesting period | 3 years | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 200.00% |
Other Income And Deductions (Sc
Other Income And Deductions (Schedule Of Other Income) (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Component of Other Income [Line Items] | ||||
Investment Income, Interest and Dividend | $ 52 | $ 57 | $ 52 | |
Components of Other Income [Roll Forward] | ||||
Allowance for Funds Used During Construction | 87 | 59 | 54 | |
Solar Loan Interest | 15 | 16 | 18 | |
Donations | (3) | (11) | (17) | |
Purchase of Tax Losses | 36 | 26 | ||
Other | 0 | 4 | 4 | |
Total Other Income and Deductions | 115 | 125 | 85 | |
Public Service Electric and Gas Company | ||||
Component of Other Income [Line Items] | ||||
Investment Income, Interest and Dividend | 0 | 0 | 0 | |
Components of Other Income [Roll Forward] | ||||
Allowance for Funds Used During Construction | 87 | 59 | 54 | |
Solar Loan Interest | 15 | 16 | 18 | |
Donations | 0 | 0 | 0 | |
Purchase of Tax Losses | 0 | 0 | ||
Other | 6 | 8 | 8 | |
Total Other Income and Deductions | 108 | 83 | 80 | |
PSEG Power LLC | ||||
Component of Other Income [Line Items] | ||||
Investment Income, Interest and Dividend | 52 | 57 | 52 | |
Components of Other Income [Roll Forward] | ||||
Allowance for Funds Used During Construction | 0 | 0 | 0 | |
Solar Loan Interest | 0 | 0 | 0 | |
Donations | 0 | 0 | 0 | |
Purchase of Tax Losses | 36 | 26 | ||
Other | (4) | (3) | (5) | |
Total Other Income and Deductions | 12 | 54 | 21 | |
Other [Member] | ||||
Component of Other Income [Line Items] | ||||
Investment Income, Interest and Dividend | [1] | 0 | 0 | 0 |
Components of Other Income [Roll Forward] | ||||
Allowance for Funds Used During Construction | [1] | 0 | 0 | 0 |
Solar Loan Interest | [1] | 0 | 0 | 0 |
Donations | [1] | (3) | (11) | (17) |
Purchase of Tax Losses | 0 | 0 | ||
Other | [1] | (2) | (1) | 1 |
Total Other Income and Deductions | [1] | $ (5) | $ (12) | $ (16) |
[1] | Other consists of activity at PSEG (as parent company), Energy Holdings, Services, PSEG LI and intercompany eliminations. |
Income Taxes (Reconciliation Of
Income Taxes (Reconciliation Of Reported Income Tax Expense) (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |||
Income Taxes [Line Items] | |||||
Net Income | $ 1,905 | [1] | $ 1,693 | [1] | $ 1,438 |
Federal | 385 | 84 | (97) | ||
State | 48 | 18 | 83 | ||
Total Current | 433 | 102 | (14) | ||
Federal | (164) | 3 | 373 | ||
State | 141 | 132 | 71 | ||
Total Deferred | (23) | 135 | 444 | ||
Investment tax credit | (14) | 20 | (13) | ||
Total Income Tax | 396 | 257 | 417 | ||
Pre-Tax Income | 2,301 | 1,950 | 1,855 | ||
Tax Computed at Statutory Rate | 483 | 410 | 390 | ||
State Income Taxes (net of federal income tax) | 147 | 117 | 123 | ||
Uncertain Tax Positions | 3 | 0 | (24) | ||
Nuclear Decommissioning Trust | 32 | 34 | (13) | ||
Plant-Related Items | (9) | (2) | (10) | ||
Tax Credits | (18) | (18) | (16) | ||
Effective Income Tax Rate Reconciliation, Tax Settlement, Domestic, Amount | (27) | 0 | 0 | ||
Effective Income Tax Rate Reconciliation, Leasing Activities, Amount | (35) | 0 | 0 | ||
Tax Adjustment Credit | (205) | (272) | (30) | ||
Effective Income Tax Rate Reconciliation, Bad Debt Flow Through, Amount | 28 | 0 | 0 | ||
Other | (3) | (12) | (6) | ||
Sub-Total | (87) | (153) | 27 | ||
Income Tax Provision | $ 396 | $ 257 | $ 417 | ||
Effective income tax rate | 17.20% | 13.20% | 22.50% | ||
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Amount | $ 0 | $ 0 | $ 3 | ||
Public Service Electric and Gas Company | |||||
Income Taxes [Line Items] | |||||
Net Income | 1,327 | 1,250 | 1,067 | ||
Federal | 179 | 121 | (62) | ||
State | 8 | 0 | 1 | ||
Total Current | 187 | 121 | (61) | ||
Federal | (71) | (156) | 287 | ||
State | 128 | 117 | 122 | ||
Total Deferred | 57 | (39) | 409 | ||
Investment tax credit | (4) | 11 | (4) | ||
Total Income Tax | 240 | 93 | 344 | ||
Pre-Tax Income | 1,567 | 1,343 | 1,411 | ||
Tax Computed at Statutory Rate | 329 | 282 | 296 | ||
State Income Taxes (net of federal income tax) | 106 | 92 | 98 | ||
Uncertain Tax Positions | 4 | 1 | (1) | ||
Plant-Related Items | (9) | (2) | (10) | ||
Tax Credits | (9) | (8) | (8) | ||
Effective Income Tax Rate Reconciliation, Tax Settlement, Domestic, Amount | (2) | 0 | 0 | ||
Tax Adjustment Credit | (205) | (272) | (30) | ||
Effective Income Tax Rate Reconciliation, Bad Debt Flow Through, Amount | 28 | 0 | 0 | ||
Other | (2) | 0 | (1) | ||
Sub-Total | (89) | (189) | 48 | ||
Income Tax Provision | $ 240 | $ 93 | $ 344 | ||
Effective income tax rate | 15.30% | 6.90% | 24.40% | ||
PSEG Power LLC | |||||
Income Taxes [Line Items] | |||||
Net Income | $ 594 | $ 468 | $ 365 | ||
Federal | 135 | (48) | (164) | ||
State | (7) | 3 | 24 | ||
Total Current | 128 | (45) | (140) | ||
Federal | 39 | 208 | 214 | ||
State | 31 | 31 | 1 | ||
Total Deferred | 70 | 239 | 215 | ||
Investment tax credit | (10) | 9 | (9) | ||
Total Income Tax | 188 | 203 | 66 | ||
Pre-Tax Income | 782 | 671 | 431 | ||
Tax Computed at Statutory Rate | 164 | 141 | 91 | ||
State Income Taxes (net of federal income tax) | 18 | 25 | 21 | ||
Uncertain Tax Positions | 5 | 11 | (24) | ||
Nuclear Decommissioning Trust | 32 | 34 | (13) | ||
Tax Credits | (9) | (10) | (7) | ||
Effective Income Tax Rate Reconciliation, Tax Settlement, Domestic, Amount | (21) | 0 | 0 | ||
Other | (1) | 2 | (1) | ||
Sub-Total | 24 | 62 | (25) | ||
Income Tax Provision | $ 188 | $ 203 | $ 66 | ||
Effective income tax rate | 24.00% | 30.30% | 15.30% | ||
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Amount | $ 0 | $ 0 | $ (1) | ||
[1] | Includes an after-tax gain of $86 million in the year ended December 31, 2020 related to the sale of PSEG Power’s interest in the Yards Creek generation facility and an after-tax loss of $286 million in the year ended December 31, 2019 related to the sale of PSEG Power’s ownership interests in the Keystone and Conemaugh fossil generation plants. See Note 4. Early Plant Retirements/Asset Dispositions for additional information. |
Income Taxes (Deferred Income T
Income Taxes (Deferred Income Tax) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Income Taxes [Line Items] | ||
Regulatory Liability Excess Deferred Tax | $ 485 | $ 539 |
OPEB | 135 | 151 |
Related to Uncertain Tax Positions | 29 | 97 |
Deferred Tax Asset, Interest Carryforward | 39 | 76 |
Deferred Tax Asset, Operating Leases | 60 | 64 |
Other | 170 | 128 |
Total Noncurrent Assets | 918 | 1,055 |
Plant-Related Items | 5,163 | 5,051 |
New Jersey Corporate Business Tax | 1,016 | 876 |
Leasing Activities | 133 | 284 |
Pension Costs | 97 | 98 |
Deferred Tax Liabilities, Operating Leases | 55 | 59 |
AROs and NDT Fund | 324 | 277 |
Taxes Recoverable Through Future Rate (net) | 114 | 108 |
Deferred Tax Liabilities, Other | 247 | 273 |
Total Noncurrent Liabilities | 7,149 | 7,026 |
Accumulated Deferred Investment Tax Credit | 271 | 285 |
Net Total Noncurrent Deferred Income Taxes and ITC | 6,502 | 6,256 |
Deferred Tax Liabilities, Net, Noncurrent | 6,231 | 5,971 |
Public Service Electric and Gas Company | ||
Income Taxes [Line Items] | ||
Regulatory Liability Excess Deferred Tax | 485 | 539 |
OPEB | 82 | 97 |
Related to Uncertain Tax Positions | 0 | 42 |
Deferred Tax Asset, Operating Leases | 21 | 21 |
Other | 92 | 55 |
Total Noncurrent Assets | 680 | 754 |
Plant-Related Items | 3,874 | 3,754 |
New Jersey Corporate Business Tax | 721 | 588 |
Conservation Costs | 61 | 44 |
Pension Costs | 166 | 160 |
Deferred Tax Liabilities, Operating Leases | 21 | 21 |
Deferred Tax Liabilities, Uncertain Tax Positions | 5 | 0 |
Taxes Recoverable Through Future Rate (net) | 114 | 108 |
Deferred Tax Liabilities, Other | 161 | 183 |
Total Noncurrent Liabilities | 5,123 | 4,858 |
Accumulated Deferred Investment Tax Credit | 81 | 85 |
Net Total Noncurrent Deferred Income Taxes and ITC | 4,524 | 4,189 |
Deferred Tax Liabilities, Net, Noncurrent | 4,443 | 4,104 |
PSEG Power LLC | ||
Income Taxes [Line Items] | ||
OPEB | 41 | 40 |
Contractual Liabilities & Environmental Costs | 6 | 7 |
Related to Uncertain Tax Positions | 38 | 72 |
Deferred Tax Asset, Interest Carryforward | 6 | 12 |
Deferred Tax Asset, Operating Leases | 13 | 15 |
Pension Costs | 68 | 61 |
Other | 36 | 30 |
Total Noncurrent Assets | 208 | 237 |
Plant-Related Items | 1,286 | 1,292 |
New Jersey Corporate Business Tax | 308 | 282 |
Deferred Tax Liabilities, Operating Leases | 13 | 15 |
AROs and NDT Fund | 325 | 278 |
Deferred Tax Liabilities, Other | 21 | 45 |
Total Noncurrent Liabilities | 1,953 | 1,912 |
Accumulated Deferred Investment Tax Credit | 191 | 201 |
Net Total Noncurrent Deferred Income Taxes and ITC | 1,936 | 1,876 |
Deferred Tax Liabilities, Net, Noncurrent | $ 1,745 | $ 1,675 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Taxes [Line Items] | |||
Federal income tax rate | 21.00% | ||
Regulatory Liabilities | $ 2,707 | $ 3,002 | |
NJ tax surcharge percent for 2020 to 2021 extended to 2023 | 2.50% | ||
Tax Adjustment Credit | $ (205) | (272) | $ (30) |
NJ tax surcharge percent for 2018 to 2019 | 1.50% | ||
Public Service Electric and Gas Company | |||
Income Taxes [Line Items] | |||
Regulatory Liabilities | $ 2,707 | 3,002 | |
NOL Carryforwards | 29 | ||
Excess deferred income tax flowback | 286 | ||
Tax Adjustment Credit | (205) | (272) | $ (30) |
Excess Deferred Income Taxes excluding amounts from previously realized repair deductions [Member] | Public Service Electric and Gas Company | |||
Income Taxes [Line Items] | |||
Reduction in Regulatory Liability | $ 255 | ||
Reduction in Deferred Tax Liabilities | 1,900 | ||
Regulatory Liabilities | $ 2,600 |
Income Taxes (Unrecognized Tax
Income Taxes (Unrecognized Tax Benefits) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Total Amount of Unrecognized Tax Benefits at January | $ 321 | $ 318 | $ 334 |
Increases as a Result of Positions Taken in a Prior Period | 33 | 17 | 11 |
Decreases as a Result of Positions Taken in a Prior Period | (91) | (37) | (70) |
Increases as a Result of Positions Taken during the Current Period | 0 | 27 | 52 |
Decreases as a Result of Positions Taken during the Current Period | 0 | 0 | (3) |
Decreases as a Result of Settlements with Taxing Authorities | (116) | (4) | (6) |
Decreases due to Lapses of Applicable Statute of Limitations | 0 | 0 | 0 |
Total Amount of Unrecognized Tax Benefits at December | 147 | 321 | 318 |
Accumulated Deferred Income Taxes Associated with Unrecognized Tax Benefits | (69) | (184) | (173) |
Regulatory Asset-Unrecognized Tax Benefits | (15) | (46) | (46) |
Amount of unrecognized tax benefits that would affect the effective tax rate | 63 | 91 | 99 |
PSEG Power LLC | |||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Total Amount of Unrecognized Tax Benefits at January | 161 | 151 | 142 |
Increases as a Result of Positions Taken in a Prior Period | 10 | 8 | 4 |
Decreases as a Result of Positions Taken in a Prior Period | (36) | (13) | (37) |
Increases as a Result of Positions Taken during the Current Period | 0 | 15 | 48 |
Decreases as a Result of Positions Taken during the Current Period | 0 | 0 | 0 |
Decreases as a Result of Settlements with Taxing Authorities | (52) | 0 | (6) |
Decreases due to Lapses of Applicable Statute of Limitations | 0 | 0 | 0 |
Total Amount of Unrecognized Tax Benefits at December | 83 | 161 | 151 |
Accumulated Deferred Income Taxes Associated with Unrecognized Tax Benefits | (49) | (105) | (104) |
Regulatory Asset-Unrecognized Tax Benefits | 0 | 0 | 0 |
Amount of unrecognized tax benefits that would affect the effective tax rate | 34 | 56 | 47 |
Public Service Electric and Gas Company | |||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Total Amount of Unrecognized Tax Benefits at January | 124 | 108 | 135 |
Increases as a Result of Positions Taken in a Prior Period | 21 | 5 | 4 |
Decreases as a Result of Positions Taken in a Prior Period | (51) | (1) | (31) |
Increases as a Result of Positions Taken during the Current Period | 0 | 12 | 3 |
Decreases as a Result of Positions Taken during the Current Period | 0 | 0 | (3) |
Decreases as a Result of Settlements with Taxing Authorities | (64) | 0 | 0 |
Decreases due to Lapses of Applicable Statute of Limitations | 0 | 0 | 0 |
Total Amount of Unrecognized Tax Benefits at December | 30 | 124 | 108 |
Accumulated Deferred Income Taxes Associated with Unrecognized Tax Benefits | (12) | (71) | (57) |
Regulatory Asset-Unrecognized Tax Benefits | (15) | (46) | (46) |
Amount of unrecognized tax benefits that would affect the effective tax rate | 3 | 7 | 5 |
Energy Holdings [Member] | |||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Total Amount of Unrecognized Tax Benefits at January | 33 | 54 | 53 |
Increases as a Result of Positions Taken in a Prior Period | 1 | 5 | 3 |
Decreases as a Result of Positions Taken in a Prior Period | (4) | (22) | (2) |
Increases as a Result of Positions Taken during the Current Period | 0 | 0 | 0 |
Decreases as a Result of Positions Taken during the Current Period | 0 | 0 | 0 |
Decreases as a Result of Settlements with Taxing Authorities | 0 | (4) | 0 |
Decreases due to Lapses of Applicable Statute of Limitations | 0 | 0 | 0 |
Total Amount of Unrecognized Tax Benefits at December | 30 | 33 | 54 |
Accumulated Deferred Income Taxes Associated with Unrecognized Tax Benefits | (8) | (7) | (12) |
Regulatory Asset-Unrecognized Tax Benefits | 0 | 0 | 0 |
Amount of unrecognized tax benefits that would affect the effective tax rate | $ 22 | $ 26 | $ 42 |
Income Taxes (Interest And Pena
Income Taxes (Interest And Penalties Related To Unrecognized Tax Benefits) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Taxes [Line Items] | |||
Accumulated Interest and Penalties on Uncertain Tax Positions | $ 29 | $ 40 | $ 43 |
Public Service Electric and Gas Company | |||
Income Taxes [Line Items] | |||
Accumulated Interest and Penalties on Uncertain Tax Positions | 9 | 16 | 12 |
PSEG Power LLC | |||
Income Taxes [Line Items] | |||
Accumulated Interest and Penalties on Uncertain Tax Positions | 5 | 12 | 9 |
Energy Holdings [Member] | |||
Income Taxes [Line Items] | |||
Accumulated Interest and Penalties on Uncertain Tax Positions | $ 15 | $ 13 | $ 22 |
Income Taxes (Possible Decrease
Income Taxes (Possible Decrease In Total Unrecognized Tax Benefits Including Interest) (Details) $ in Millions | Dec. 31, 2020USD ($) |
Income Taxes [Line Items] | |
Possible Decrease in Total Unrecognized Tax Benefits including Interest in next twelve months | $ 12 |
Public Service Electric and Gas Company | |
Income Taxes [Line Items] | |
Possible Decrease in Total Unrecognized Tax Benefits including Interest in next twelve months | 12 |
PSEG Power LLC | |
Income Taxes [Line Items] | |
Possible Decrease in Total Unrecognized Tax Benefits including Interest in next twelve months | $ 0 |
Income Taxes (Description Of In
Income Taxes (Description Of Income Tax Years By Material Jurisdictions) (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Federal [Member] | PSEG [Member] | |
Income Taxes [Line Items] | |
Income Tax Year Subject to Examination by Material Jurisdictions | 2017-2019 |
Federal [Member] | PSEG Power LLC | |
Income Taxes [Line Items] | |
Income Tax Year Subject to Examination by Material Jurisdictions | N/A |
Federal [Member] | Public Service Electric and Gas Company | |
Income Taxes [Line Items] | |
Income Tax Year Subject to Examination by Material Jurisdictions | N/A |
NEW JERSEY | PSEG [Member] | |
Income Taxes [Line Items] | |
Income Tax Year Subject to Examination by Material Jurisdictions | 2011-2019 |
NEW JERSEY | PSEG Power LLC | |
Income Taxes [Line Items] | |
Income Tax Year Subject to Examination by Material Jurisdictions | N/A |
NEW JERSEY | Public Service Electric and Gas Company | |
Income Taxes [Line Items] | |
Income Tax Year Subject to Examination by Material Jurisdictions | 2011-2019 |
PENNSYLVANIA | PSEG [Member] | |
Income Taxes [Line Items] | |
Income Tax Year Subject to Examination by Material Jurisdictions | 2017-2019 |
PENNSYLVANIA | PSEG Power LLC | |
Income Taxes [Line Items] | |
Income Tax Year Subject to Examination by Material Jurisdictions | N/A |
PENNSYLVANIA | Public Service Electric and Gas Company | |
Income Taxes [Line Items] | |
Income Tax Year Subject to Examination by Material Jurisdictions | 2017-2019 |
CONNECTICUT | PSEG [Member] | |
Income Taxes [Line Items] | |
Income Tax Year Subject to Examination by Material Jurisdictions | 2016-2019 |
CONNECTICUT | PSEG Power LLC | |
Income Taxes [Line Items] | |
Income Tax Year Subject to Examination by Material Jurisdictions | N/A |
CONNECTICUT | Public Service Electric and Gas Company | |
Income Taxes [Line Items] | |
Income Tax Year Subject to Examination by Material Jurisdictions | N/A |
MARYLAND | PSEG [Member] | |
Income Taxes [Line Items] | |
Income Tax Year Subject to Examination by Material Jurisdictions | 2017-2019 |
MARYLAND | PSEG Power LLC | |
Income Taxes [Line Items] | |
Income Tax Year Subject to Examination by Material Jurisdictions | N/A |
MARYLAND | Public Service Electric and Gas Company | |
Income Taxes [Line Items] | |
Income Tax Year Subject to Examination by Material Jurisdictions | N/A |
NEW YORK | PSEG [Member] | |
Income Taxes [Line Items] | |
Income Tax Year Subject to Examination by Material Jurisdictions | 2017-2019 |
NEW YORK | PSEG Power LLC | |
Income Taxes [Line Items] | |
Income Tax Year Subject to Examination by Material Jurisdictions | N/A |
NEW YORK | Public Service Electric and Gas Company | |
Income Taxes [Line Items] | |
Income Tax Year Subject to Examination by Material Jurisdictions | N/A |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss), Net of Tax Accumulated Other Comprehensive Income (Loss), Net of Tax (Changes in AOCI) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | $ (489) | $ (377) | $ (229) |
Other Comprehensive Income (Loss) before Reclassifications | (11) | (38) | (9) |
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) | (4) | 7 | 37 |
Net Current Period Other Comprehensive Income (Loss) | (15) | (31) | 28 |
Ending Balance | (504) | (489) | (377) |
Net Change in Accumulated Other Comprehensive Income | (112) | (148) | |
Cumulative Effect, Period of Adoption, Adjustment | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | (81) | (176) | |
Ending Balance | (81) | ||
PSEG Power LLC | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | (401) | (319) | (172) |
Other Comprehensive Income (Loss) before Reclassifications | (7) | (17) | (3) |
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) | (11) | 4 | 31 |
Net Current Period Other Comprehensive Income (Loss) | (18) | (13) | 28 |
Ending Balance | (419) | (401) | (319) |
Net Change in Accumulated Other Comprehensive Income | (82) | (147) | |
PSEG Power LLC | Cumulative Effect, Period of Adoption, Adjustment | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | (69) | (175) | |
Ending Balance | (69) | ||
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | (15) | (1) | 0 |
Other Comprehensive Income (Loss) before Reclassifications | (4) | (17) | (1) |
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) | 10 | 3 | 0 |
Net Current Period Other Comprehensive Income (Loss) | 6 | (14) | (1) |
Ending Balance | (9) | (15) | (1) |
Net Change in Accumulated Other Comprehensive Income | (14) | (1) | |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | Cumulative Effect, Period of Adoption, Adjustment | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | 0 | 0 | |
Ending Balance | 0 | ||
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | PSEG Power LLC | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | 0 | 0 | 0 |
Other Comprehensive Income (Loss) before Reclassifications | 0 | 0 | 0 |
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) | 0 | 0 | 0 |
Net Current Period Other Comprehensive Income (Loss) | 0 | 0 | 0 |
Ending Balance | 0 | 0 | 0 |
Net Change in Accumulated Other Comprehensive Income | 0 | 0 | |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | PSEG Power LLC | Cumulative Effect, Period of Adoption, Adjustment | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | 0 | 0 | |
Ending Balance | 0 | ||
Accumulated Defined Benefit Plans Adjustment [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | (499) | (360) | (406) |
Other Comprehensive Income (Loss) before Reclassifications | (58) | (70) | 17 |
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) | 12 | 12 | 29 |
Net Current Period Other Comprehensive Income (Loss) | (46) | (58) | 46 |
Ending Balance | (545) | (499) | (360) |
Net Change in Accumulated Other Comprehensive Income | (139) | 46 | |
Accumulated Defined Benefit Plans Adjustment [Member] | Cumulative Effect, Period of Adoption, Adjustment | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | (81) | 0 | |
Ending Balance | (81) | ||
Accumulated Defined Benefit Plans Adjustment [Member] | PSEG Power LLC | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | (420) | (306) | (347) |
Other Comprehensive Income (Loss) before Reclassifications | (48) | (55) | 16 |
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) | 9 | 10 | 25 |
Net Current Period Other Comprehensive Income (Loss) | (39) | (45) | 41 |
Ending Balance | (459) | (420) | (306) |
Net Change in Accumulated Other Comprehensive Income | (114) | 41 | |
Accumulated Defined Benefit Plans Adjustment [Member] | PSEG Power LLC | Cumulative Effect, Period of Adoption, Adjustment | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | (69) | 0 | |
Ending Balance | (69) | ||
Accumulated Net Unrealized Investment Gain (Loss) [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | 25 | (16) | 177 |
Other Comprehensive Income (Loss) before Reclassifications | 51 | 49 | (25) |
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) | (26) | (8) | 8 |
Net Current Period Other Comprehensive Income (Loss) | 25 | 41 | (17) |
Ending Balance | 50 | 25 | (16) |
Net Change in Accumulated Other Comprehensive Income | 41 | (193) | |
Accumulated Net Unrealized Investment Gain (Loss) [Member] | Cumulative Effect, Period of Adoption, Adjustment | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | 0 | (176) | |
Ending Balance | 0 | ||
Accumulated Net Unrealized Investment Gain (Loss) [Member] | PSEG Power LLC | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | 19 | (13) | 175 |
Other Comprehensive Income (Loss) before Reclassifications | 41 | 38 | (19) |
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) | (20) | (6) | 6 |
Net Current Period Other Comprehensive Income (Loss) | 21 | 32 | (13) |
Ending Balance | $ 40 | 19 | (13) |
Net Change in Accumulated Other Comprehensive Income | 32 | (188) | |
Accumulated Net Unrealized Investment Gain (Loss) [Member] | PSEG Power LLC | Cumulative Effect, Period of Adoption, Adjustment | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | $ 0 | (175) | |
Ending Balance | $ 0 |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss), Net of Tax Accumulated Other Comprehensive Income (Loss), Net of Tax (Reclassifications out of AOCI) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Amount Reclassified from Accumulated Other Comprehensive Income, Pre-Tax | $ 12 | $ (8) | $ (54) |
Amount Reclassified from Accumulated Other Comprehensive Income, Tax | (8) | 1 | 17 |
Amount Reclassified from Accumulated Other Comprehensive Income, After-Tax | 4 | (7) | (37) |
Accumulated Net Unrealized Investment Gain (Loss) [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Amount Reclassified from AOCI for Available for Sale Securities, Pre-Tax | 42 | 13 | (13) |
Amount Reclassified from AOCI for Available for Sale Securities, Tax | (16) | (5) | 5 |
Amount Reclassified from AOCI for Available for Sale Securities, After-Tax | 26 | 8 | (8) |
Amount Reclassified from Accumulated Other Comprehensive Income, After-Tax | 26 | 8 | (8) |
Accumulated Defined Benefit Plans Adjustment [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Amount Reclassified from AOCI for Pension and OPEB Plans, Pre-Tax | (16) | (17) | (41) |
Amount Reclassified from AOCI for Pension and OPEB Plans, Tax | 4 | 5 | 12 |
Amount Reclassified from AOCI for Pension and OPEB Plans, After-Tax | (12) | (12) | (29) |
Amount Reclassified from Accumulated Other Comprehensive Income, After-Tax | (12) | (12) | (29) |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Amount Reclassified from AOCI for Cash Flow Hedges, Pre-Tax | (14) | (4) | |
Amount Reclassified from AOCI for Cash Flow Hedges, Tax | 4 | 1 | |
Amount Reclassified from AOCI for Cash Flow Hedges, After-Tax | (10) | (3) | |
Amount Reclassified from Accumulated Other Comprehensive Income, After-Tax | (10) | (3) | 0 |
Net Gains (Losses) on Trust Investments [Member] | Accumulated Net Unrealized Investment Gain (Loss) [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Amount Reclassified from AOCI for Available for Sale Securities, Pre-Tax | 42 | 13 | (13) |
Amount Reclassified from AOCI for Available for Sale Securities, Tax | (16) | (5) | 5 |
Amount Reclassified from AOCI for Available for Sale Securities, After-Tax | 26 | 8 | (8) |
Interest Expense [Member] | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Amount Reclassified from AOCI for Cash Flow Hedges, Pre-Tax | (14) | (4) | |
Amount Reclassified from AOCI for Cash Flow Hedges, Tax | 4 | 1 | |
Amount Reclassified from AOCI for Cash Flow Hedges, After-Tax | (10) | (3) | |
Non-Operating Pension and OPEB Credits (Costs) [Member] | Accumulated Defined Benefit Plans Adjustment [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Amortization of Prior Service (Cost) Credit, Pre-Tax | 24 | 26 | 6 |
Amortization of Prior Service (Cost) Credit, Tax | (7) | (7) | (2) |
Amortization of Prior Service (Cost) Credit, After-Tax | 17 | 19 | 4 |
Amortization of Actuarial Loss, Pre-Tax | (40) | (43) | (47) |
Amortization of Actuarial Loss, Tax | 11 | 12 | 14 |
Amortization of Actuarial Loss, After-Tax | (29) | (31) | (33) |
PSEG Power LLC | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Amount Reclassified from Accumulated Other Comprehensive Income, Pre-Tax | 21 | (3) | (46) |
Amount Reclassified from Accumulated Other Comprehensive Income, Tax | (10) | (1) | 15 |
Amount Reclassified from Accumulated Other Comprehensive Income, After-Tax | 11 | (4) | (31) |
PSEG Power LLC | Accumulated Net Unrealized Investment Gain (Loss) [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Amount Reclassified from AOCI for Available for Sale Securities, Pre-Tax | 34 | 10 | (11) |
Amount Reclassified from AOCI for Available for Sale Securities, Tax | (14) | (4) | 5 |
Amount Reclassified from AOCI for Available for Sale Securities, After-Tax | 20 | 6 | (6) |
Amount Reclassified from Accumulated Other Comprehensive Income, After-Tax | 20 | 6 | (6) |
PSEG Power LLC | Accumulated Defined Benefit Plans Adjustment [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Amount Reclassified from AOCI for Pension and OPEB Plans, Pre-Tax | (13) | (13) | (35) |
Amount Reclassified from AOCI for Pension and OPEB Plans, Tax | 4 | 3 | 10 |
Amount Reclassified from AOCI for Pension and OPEB Plans, After-Tax | (9) | (10) | (25) |
Amount Reclassified from Accumulated Other Comprehensive Income, After-Tax | (9) | (10) | (25) |
PSEG Power LLC | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Amount Reclassified from Accumulated Other Comprehensive Income, After-Tax | 0 | 0 | 0 |
PSEG Power LLC | Net Gains (Losses) on Trust Investments [Member] | Accumulated Net Unrealized Investment Gain (Loss) [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Amount Reclassified from AOCI for Available for Sale Securities, Pre-Tax | 34 | 10 | (11) |
Amount Reclassified from AOCI for Available for Sale Securities, Tax | (14) | (4) | 5 |
Amount Reclassified from AOCI for Available for Sale Securities, After-Tax | 20 | 6 | (6) |
PSEG Power LLC | Non-Operating Pension and OPEB Credits (Costs) [Member] | Accumulated Defined Benefit Plans Adjustment [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Amortization of Prior Service (Cost) Credit, Pre-Tax | 21 | 23 | 5 |
Amortization of Prior Service (Cost) Credit, Tax | (6) | (7) | (1) |
Amortization of Prior Service (Cost) Credit, After-Tax | 15 | 16 | 4 |
Amortization of Actuarial Loss, Pre-Tax | (34) | (36) | (40) |
Amortization of Actuarial Loss, Tax | 10 | 10 | 11 |
Amortization of Actuarial Loss, After-Tax | $ (24) | $ (26) | $ (29) |
Earnings Per Share (EPS) And _3
Earnings Per Share (EPS) And Dividends (Basic And Diluted Earnings Per Share Computation) (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |||
Earnings Per Share, Diluted [Line Items] | |||||
Net Income | $ 1,905 | [1] | $ 1,693 | [1] | $ 1,438 |
Effect of Stock Based Compensation Awards, Basic | 0 | 0 | 0 | ||
Total Shares, Basic | 504,000 | 504,000 | 504,000 | ||
Effect of Stock Based Compensation Awards, Diluted | 3,000 | 3,000 | 3,000 | ||
Total Shares, Diluted | 507,000 | 507,000 | 507,000 | ||
Weighted Average Common Shares Outstanding Before Various Effects Basic | 504,000 | 504,000 | 504,000 | ||
Weighted Average Common Shares Outstanding Before Various Effects Diluted | 504,000 | 504,000 | 504,000 | ||
Earnings Per Share, Basic | $ 3.78 | $ 3.35 | $ 2.85 | ||
Earnings Per Share, Diluted | $ 3.76 | $ 3.33 | $ 2.83 | ||
[1] | Includes an after-tax gain of $86 million in the year ended December 31, 2020 related to the sale of PSEG Power’s interest in the Yards Creek generation facility and an after-tax loss of $286 million in the year ended December 31, 2019 related to the sale of PSEG Power’s ownership interests in the Keystone and Conemaugh fossil generation plants. See Note 4. Early Plant Retirements/Asset Dispositions for additional information. |
Earnings Per Share (EPS) And _4
Earnings Per Share (EPS) And Dividends (Dividend Payments On Common Stock) (Detail) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 12 Months Ended | ||
Feb. 28, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Earnings Per Share, Diluted [Line Items] | ||||
Dividend Payments on Common Stock, Per Share | $ 1.96 | $ 1.88 | $ 1.80 | |
Dividend Payments on Common Stock | $ 991 | $ 950 | $ 910 | |
Subsequent Event [Member] | ||||
Earnings Per Share, Diluted [Line Items] | ||||
Common stock dividends per share | $ 0.51 |
Financial Information By Busi_3
Financial Information By Business Segments (Financial Information By Business Segments) (Detail) - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||||
Segment Reporting Information [Line Items] | ||||||
Operating Revenues | $ 9,603 | $ 10,076 | $ 9,696 | |||
Depreciation and Amortization | 1,285 | 1,248 | 1,158 | |||
Operating Income (Loss) | 2,270 | 1,943 | 2,298 | |||
Income from Equity Method Investments | 14 | 14 | 15 | |||
Interest Income | 25 | 26 | 29 | |||
Interest Expense | (600) | (569) | (476) | |||
Income (Loss) before Income Taxes | 2,301 | 1,950 | 1,855 | |||
Income Tax Expense (Benefit) | 396 | 257 | 417 | |||
Net Income (Loss) | 1,905 | [1] | 1,693 | [1] | 1,438 | |
Gross Additions to Long-Lived Assets | 2,923 | 3,166 | 3,912 | |||
Total Assets | 50,050 | 47,730 | 45,326 | |||
Investments in Equity Method Subsidiaries | 64 | 67 | 86 | |||
PSEG Power LLC | ||||||
Segment Reporting Information [Line Items] | ||||||
Operating Revenues | 3,634 | 4,385 | 4,146 | |||
Gain (loss) on sale, net of tax | (86) | 286 | ||||
Public Service Electric and Gas Company | ||||||
Segment Reporting Information [Line Items] | ||||||
Operating Revenues | 6,608 | 6,625 | 6,471 | |||
Other [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Operating Revenues | 595 | 549 | 571 | |||
Retained Earnings [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Net Income (Loss) | 1,905 | 1,693 | 1,438 | |||
Operating Segments [Member] | PSEG Power LLC | ||||||
Segment Reporting Information [Line Items] | ||||||
Operating Revenues | 3,634 | 4,385 | 4,146 | |||
Depreciation and Amortization | 368 | 377 | 354 | |||
Operating Income (Loss) | 603 | 448 | 596 | |||
Income from Equity Method Investments | 14 | 14 | 15 | |||
Interest Income | 6 | 7 | 5 | |||
Interest Expense | (121) | (119) | (76) | |||
Income (Loss) before Income Taxes | 782 | 671 | 431 | |||
Income Tax Expense (Benefit) | 188 | 203 | 66 | |||
Net Income (Loss) | 594 | [1] | 468 | [1] | 365 | |
Gross Additions to Long-Lived Assets | 404 | 607 | 996 | |||
Total Assets | 12,704 | 12,805 | 12,594 | |||
Investments in Equity Method Subsidiaries | 64 | 66 | 86 | |||
Operating Segments [Member] | Public Service Electric and Gas Company | ||||||
Segment Reporting Information [Line Items] | ||||||
Operating Revenues | 6,608 | 6,625 | 6,471 | |||
Depreciation and Amortization | 887 | 837 | 770 | |||
Operating Income (Loss) | 1,639 | 1,469 | 1,606 | |||
Income from Equity Method Investments | 0 | 0 | 0 | |||
Interest Income | 17 | 18 | 21 | |||
Interest Expense | (388) | (361) | (333) | |||
Income (Loss) before Income Taxes | 1,567 | 1,343 | 1,411 | |||
Income Tax Expense (Benefit) | 240 | 93 | 344 | |||
Net Income (Loss) | 1,327 | 1,250 | 1,067 | |||
Gross Additions to Long-Lived Assets | 2,507 | 2,542 | 2,896 | |||
Total Assets | 35,581 | 33,266 | 31,109 | |||
Investments in Equity Method Subsidiaries | 0 | 0 | 0 | |||
Operating Segments [Member] | Other [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Operating Revenues | [2] | 595 | 549 | 571 | ||
Depreciation and Amortization | [2] | 30 | 34 | 34 | ||
Operating Income (Loss) | [2] | 28 | 26 | 96 | ||
Income from Equity Method Investments | [2] | 0 | 0 | 0 | ||
Interest Income | [2] | 5 | 6 | 9 | ||
Interest Expense | [2] | (94) | (94) | (73) | ||
Income (Loss) before Income Taxes | [2] | (48) | (64) | 13 | ||
Income Tax Expense (Benefit) | [2] | (32) | (39) | 7 | ||
Net Income (Loss) | [2] | (16) | (25) | 6 | ||
Gross Additions to Long-Lived Assets | [2] | 12 | 17 | 20 | ||
Total Assets | [2] | 2,692 | 2,715 | 2,604 | ||
Investments in Equity Method Subsidiaries | [2] | 0 | 1 | 0 | ||
Eliminations [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Operating Revenues | [3] | (1,234) | (1,483) | (1,492) | ||
Depreciation and Amortization | [3] | 0 | 0 | 0 | ||
Operating Income (Loss) | [3] | 0 | 0 | 0 | ||
Income from Equity Method Investments | [3] | 0 | 0 | 0 | ||
Interest Income | [3] | (3) | (5) | (6) | ||
Interest Expense | [3] | 3 | 5 | 6 | ||
Income (Loss) before Income Taxes | [3] | 0 | 0 | 0 | ||
Income Tax Expense (Benefit) | [3] | 0 | 0 | 0 | ||
Net Income (Loss) | [3] | 0 | 0 | |||
Gross Additions to Long-Lived Assets | [3] | 0 | 0 | 0 | ||
Total Assets | [3] | (927) | (1,056) | (981) | ||
Investments in Equity Method Subsidiaries | [3] | 0 | 0 | 0 | ||
PSEG Power LLC | ||||||
Segment Reporting Information [Line Items] | ||||||
Operating Revenues | 3,634 | 4,385 | 4,146 | |||
Depreciation and Amortization | 368 | 377 | 354 | |||
Operating Income (Loss) | 603 | 448 | 596 | |||
Income from Equity Method Investments | 14 | 14 | 15 | |||
Interest Expense | (121) | (119) | (76) | |||
Income (Loss) before Income Taxes | 782 | 671 | 431 | |||
Income Tax Expense (Benefit) | 188 | 203 | 66 | |||
Net Income (Loss) | 594 | 468 | 365 | |||
Total Assets | 12,704 | 12,805 | ||||
PSEG Power LLC | Retained Earnings [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Net Income (Loss) | $ 594 | $ 468 | $ 365 | |||
[1] | Includes an after-tax gain of $86 million in the year ended December 31, 2020 related to the sale of PSEG Power’s interest in the Yards Creek generation facility and an after-tax loss of $286 million in the year ended December 31, 2019 related to the sale of PSEG Power’s ownership interests in the Keystone and Conemaugh fossil generation plants. See Note 4. Early Plant Retirements/Asset Dispositions for additional information. | |||||
[2] | Includes amounts applicable to Energy Holdings and PSEG LI, which are below the quantitative threshold for separate disclosure as reportable segments. Other also includes amounts applicable to PSEG (parent corporation) and Services. | |||||
[3] | Intercompany eliminations primarily relate to intercompany transactions between PSE&G and PSEG Power. For a further discussion of the intercompany transactions between PSE&G and PSEG Power, see Note 26. Related-Party Transactions. |
Related-Party Transactions (Sch
Related-Party Transactions (Schedule Of Related Party Transactions, Revenue) (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
PSEG Power LLC | ||||
Related Party Transaction [Line Items] | ||||
Billings To PSE&G through BGSS and BGS | [1] | $ 1,207 | $ 1,512 | $ 1,514 |
Administrative Billings from Services | [2] | 160 | 156 | 145 |
Public Service Electric and Gas Company | ||||
Related Party Transaction [Line Items] | ||||
Billings from Power through BGSS and BGS | [1] | 1,207 | 1,512 | 1,514 |
Administrative Billings from Services | [2] | 337 | 310 | 333 |
Total Expense Billings from Affiliates | $ 1,544 | $ 1,822 | $ 1,847 | |
[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. |
Related-Party Transactions (S_2
Related-Party Transactions (Schedule Of Related Party Transactions, Receivables) (Detail) - PSEG Power LLC - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | |
Related Party Transaction [Line Items] | |||
Receivable from PSE&G through BGS and BGSS Contracts | [1] | $ 273 | $ 307 |
Receivable from (Payable to) Services | [2] | (13) | (5) |
Accounts Payable-Affiliated Companies | (13) | (5) | |
Short-Term Loan to Affiliate | [3] | 161 | 149 |
Receivable from PSEG | [4] | 44 | 101 |
Accounts Receivable-Affilated Companies, net | 317 | 408 | |
Working Capital Advances to Services | [5] | 17 | 17 |
Accounts Payable, Related Parties, Noncurrent | $ 57 | $ 115 | |
[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. | ||
[3] | 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. | ||
[4] | PSEG files a consolidated federal income tax return with its affiliated companies. A tax allocation agreement exists between PSEG and each of its affiliated companies. The general operation of these agreements is that the subsidiary company will compute its taxable income on a stand-alone basis. If the result is a net tax liability, such amount shall be paid to PSEG. If there are 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. | ||
[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 Consolidated Balance Sheets. |
Related-Party Transactions Rela
Related-Party Transactions Related-Party Revenues and Expenses (Details) - PSEG Power LLC - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Related Party Transaction [Line Items] | ||||
Billings To PSE&G through BGSS and BGS | [1] | $ 1,207 | $ 1,512 | $ 1,514 |
Administrative Billings from Services | [2] | $ 160 | $ 156 | $ 145 |
[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. |
Related-Party Transactions (S_3
Related-Party Transactions (Schedule Of Related Party Transactions, Payables) (Detail) - Public Service Electric and Gas Company - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | |
Related Party Transaction [Line Items] | |||
Payable to Power through BGS and BGSS Contracts | [1] | $ (273) | $ (307) |
Receivable from (Payable to) Services | [2] | (95) | (83) |
Payable to Parent | [3] | 111 | 0 |
Receivable from PSEG | [3] | 0 | 1 |
Accounts Payable-Affiliated Companies | 479 | 390 | |
Working Capital Advances to Services | [4] | 33 | 33 |
Long-Term Accrued Taxes Receivable (Payable) | $ (7) | $ (115) | |
[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. | ||
[3] | 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. | ||
[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 Consolidated Balance Sheets. |
Valuation And Qualifying Acco_2
Valuation And Qualifying Accounts (Schedule Of Valuation And Qualifying Accounts) (Details) - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||||
Allowance For Doubtful Accounts [Member] | ||||||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | ||||||
Balance at Beginning of Period | $ 60 | $ 63 | $ 59 | |||
Additions, Charged to cost and expenses | [1] | 175 | 87 | 91 | ||
Additions, Charged to other accounts-describe | 0 | 0 | 0 | |||
Deductions-describe | [2] | 37 | 90 | 87 | ||
Balance at End of Period | 206 | 60 | 63 | |||
Allowance For Doubtful Accounts [Member] | Cumulative Effect, Period of Adoption, Adjusted Balance | ||||||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | ||||||
Balance at Beginning of Period | [3] | 68 | ||||
Balance at End of Period | [3] | 68 | ||||
Materials And Supplies Valuation Reserve [Member] | ||||||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | ||||||
Balance at Beginning of Period | 11 | 9 | 7 | |||
Additions, Charged to cost and expenses | 1 | 3 | 4 | |||
Additions, Charged to other accounts-describe | 0 | 0 | 0 | |||
Deductions-describe | 2 | [4] | 1 | [4] | 2 | |
Balance at End of Period | 10 | 11 | 9 | |||
Public Service Electric and Gas Company | Allowance For Doubtful Accounts [Member] | ||||||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | ||||||
Balance at Beginning of Period | 60 | 63 | 59 | |||
Additions, Charged to cost and expenses | [5] | 175 | 87 | 91 | ||
Additions, Charged to other accounts-describe | 0 | 0 | 0 | |||
Deductions-describe | [6] | 37 | 90 | 87 | ||
Balance at End of Period | 206 | 60 | 63 | |||
Public Service Electric and Gas Company | Allowance For Doubtful Accounts [Member] | Cumulative Effect, Period of Adoption, Adjusted Balance | ||||||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | ||||||
Balance at Beginning of Period | [7] | 68 | ||||
Balance at End of Period | [7] | 68 | ||||
Public Service Electric and Gas Company | Materials And Supplies Valuation Reserve [Member] | ||||||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | ||||||
Balance at Beginning of Period | 2 | 2 | 0 | |||
Additions, Charged to cost and expenses | 0 | 0 | 2 | |||
Additions, Charged to other accounts-describe | 0 | 0 | 0 | |||
Deductions-describe | 0 | 0 | 0 | |||
Balance at End of Period | 2 | 2 | 2 | |||
PSEG Power LLC | Materials And Supplies Valuation Reserve [Member] | ||||||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | ||||||
Balance at Beginning of Period | 9 | 7 | 7 | |||
Additions, Charged to cost and expenses | 1 | 3 | 2 | |||
Additions, Charged to other accounts-describe | 0 | 0 | 0 | |||
Deductions-describe | [8] | 2 | 1 | 2 | ||
Balance at End of Period | $ 8 | $ 9 | $ 7 | |||
[1] | For a discussion of bad debt recoveries, see Note 1. Organization, Basis of Presentation and Summary of Significant Accounting Policies. | |||||
[2] | Accounts Receivable written off. | |||||
[3] | Includes $8 million due to the adoption of ASU 2016-13. | |||||
[4] | Reduce reserve to appropriate level and to remove obsolete inventory. | |||||
[5] | For a discussion of bad debt recoveries, see Note 1. Organization, Basis of Presentation and Summary of Significant Accounting Policies. | |||||
[6] | Accounts Receivable written off. | |||||
[7] | Includes $8 million due to the adoption of ASU 2016-13. | |||||
[8] | Reduce reserve to appropriate level and to remove obsolete inventory. |