Pension and OPEB

9 Months Ended

Sep. 30, 2012

Pension and OPEB

Pension and OPEB

PSEG sponsors several qualified and nonqualified pension plans and OPEB plans covering PSEG’s and its participating affiliates’ current and former employees who meet certain eligibility criteria. The following table provides the components of net periodic benefit costs relating to all qualified and nonqualified pension and OPEB plans on an aggregate basis. OPEB costs are presented net of the federal subsidy expected for prescription drugs under the Medicare Prescription Drug Improvement and Modernization Act of 2003. Federal health care legislation enacted in March 2010 eliminates the tax deductibility of retiree health care costs beginning in 2013, to the extent of federal subsidies received by plan sponsors that provide retiree prescription drug benefits equivalent to Medicare Part D coverage. See Note 13. Income Taxes for additional information.

Pension and OPEB costs for PSEG are detailed as follows:

	Pension Benefits						OPEB						Pension Benefits						OPEB
	Three Months Ended						Three Months Ended						Nine Months Ended						Nine Months Ended
	September 30,						September 30,						September 30,						September 30,
	2012			2011			2012			2011			2012			2011			2012			2011
	Millions
Components of Net Periodic Benefit Cost
Service Cost	$	26		$	22		$	5		$	3		$	76		$	69		$	13		$	10
Interest Cost	56			56			17			15			167			172			49			45
Expected Return on Plan Assets	(76		)	(85		)	(4		)	(5		)	(229		)	(248		)	(13		)	(13		)
Amortization of Net
Transition Obligation	—			—			1			1			—			—			2			4
Prior Service Cost (Credit)	(5		)	(4		)	(4		)	(4		)	(14		)	(6		)	(11		)	(10		)
Actuarial Loss	41			29			7			4			125			89			23			11
Net Periodic Benefit Cost	$	42		$	18		$	22		$	14		$	125		$	76		$	63		$	47
Special Termination Benefits	1			0			0			0			1			0			0			0
Effect of Regulatory Asset	—			—			4			5			—			—			14			15
Total Benefit Costs, Including Effect of Regulatory Asset	$	43		$	18		$	26		$	19		$	126		$	76		$	77		$	62

Pension and OPEB costs for Power, PSE&G and PSEG’s other subsidiaries are detailed as follows:

	Pension Benefits				OPEB				Pension Benefits				OPEB
	Three Months Ended				Three Months Ended				Nine Months Ended				Nine Months Ended
	September 30,				September 30,				September 30,				September 30,
	2012		2011		2012		2011		2012		2011		2012		2011
	Millions
Power	$	14	$	6	$	5	$	3	$	39	$	24	$	14	$	9
PSE&G	24		9		21		16		73		41		61		51
Other	5		3		—		—		14		11		2		2
Total Benefit Costs	$	43	$	18	$	26	$	19	$	126	$	76	$	77	$	62

During the three months ended March 31, 2012, PSEG contributed its entire planned contribution for the year 2012 of $124 million and $11 million into its pension and postretirement healthcare plans, respectively.

Power [Member]

Pension and OPEB

Pension and OPEB

PSEG sponsors several qualified and nonqualified pension plans and OPEB plans covering PSEG’s and its participating affiliates’ current and former employees who meet certain eligibility criteria. The following table provides the components of net periodic benefit costs relating to all qualified and nonqualified pension and OPEB plans on an aggregate basis. OPEB costs are presented net of the federal subsidy expected for prescription drugs under the Medicare Prescription Drug Improvement and Modernization Act of 2003. Federal health care legislation enacted in March 2010 eliminates the tax deductibility of retiree health care costs beginning in 2013, to the extent of federal subsidies received by plan sponsors that provide retiree prescription drug benefits equivalent to Medicare Part D coverage. See Note 13. Income Taxes for additional information.

Pension and OPEB costs for PSEG are detailed as follows:

	Pension Benefits						OPEB						Pension Benefits						OPEB
	Three Months Ended						Three Months Ended						Nine Months Ended						Nine Months Ended
	September 30,						September 30,						September 30,						September 30,
	2012			2011			2012			2011			2012			2011			2012			2011
	Millions
Components of Net Periodic Benefit Cost
Service Cost	$	26		$	22		$	5		$	3		$	76		$	69		$	13		$	10
Interest Cost	56			56			17			15			167			172			49			45
Expected Return on Plan Assets	(76		)	(85		)	(4		)	(5		)	(229		)	(248		)	(13		)	(13		)
Amortization of Net
Transition Obligation	—			—			1			1			—			—			2			4
Prior Service Cost (Credit)	(5		)	(4		)	(4		)	(4		)	(14		)	(6		)	(11		)	(10		)
Actuarial Loss	41			29			7			4			125			89			23			11
Net Periodic Benefit Cost	$	42		$	18		$	22		$	14		$	125		$	76		$	63		$	47
Special Termination Benefits	1			0			0			0			1			0			0			0
Effect of Regulatory Asset	—			—			4			5			—			—			14			15
Total Benefit Costs, Including Effect of Regulatory Asset	$	43		$	18		$	26		$	19		$	126		$	76		$	77		$	62

Pension and OPEB costs for Power, PSE&G and PSEG’s other subsidiaries are detailed as follows:

	Pension Benefits				OPEB				Pension Benefits				OPEB
	Three Months Ended				Three Months Ended				Nine Months Ended				Nine Months Ended
	September 30,				September 30,				September 30,				September 30,
	2012		2011		2012		2011		2012		2011		2012		2011
	Millions
Power	$	14	$	6	$	5	$	3	$	39	$	24	$	14	$	9
PSE&G	24		9		21		16		73		41		61		51
Other	5		3		—		—		14		11		2		2
Total Benefit Costs	$	43	$	18	$	26	$	19	$	126	$	76	$	77	$	62

During the three months ended March 31, 2012, PSEG contributed its entire planned contribution for the year 2012 of $124 million and $11 million into its pension and postretirement healthcare plans, respectively.

PSE And G [Member]

Pension and OPEB

Pension and OPEB

PSEG sponsors several qualified and nonqualified pension plans and OPEB plans covering PSEG’s and its participating affiliates’ current and former employees who meet certain eligibility criteria. The following table provides the components of net periodic benefit costs relating to all qualified and nonqualified pension and OPEB plans on an aggregate basis. OPEB costs are presented net of the federal subsidy expected for prescription drugs under the Medicare Prescription Drug Improvement and Modernization Act of 2003. Federal health care legislation enacted in March 2010 eliminates the tax deductibility of retiree health care costs beginning in 2013, to the extent of federal subsidies received by plan sponsors that provide retiree prescription drug benefits equivalent to Medicare Part D coverage. See Note 13. Income Taxes for additional information.

Pension and OPEB costs for PSEG are detailed as follows:

	Pension Benefits						OPEB						Pension Benefits						OPEB
	Three Months Ended						Three Months Ended						Nine Months Ended						Nine Months Ended
	September 30,						September 30,						September 30,						September 30,
	2012			2011			2012			2011			2012			2011			2012			2011
	Millions
Components of Net Periodic Benefit Cost
Service Cost	$	26		$	22		$	5		$	3		$	76		$	69		$	13		$	10
Interest Cost	56			56			17			15			167			172			49			45
Expected Return on Plan Assets	(76		)	(85		)	(4		)	(5		)	(229		)	(248		)	(13		)	(13		)
Amortization of Net
Transition Obligation	—			—			1			1			—			—			2			4
Prior Service Cost (Credit)	(5		)	(4		)	(4		)	(4		)	(14		)	(6		)	(11		)	(10		)
Actuarial Loss	41			29			7			4			125			89			23			11
Net Periodic Benefit Cost	$	42		$	18		$	22		$	14		$	125		$	76		$	63		$	47
Special Termination Benefits	1			0			0			0			1			0			0			0
Effect of Regulatory Asset	—			—			4			5			—			—			14			15
Total Benefit Costs, Including Effect of Regulatory Asset	$	43		$	18		$	26		$	19		$	126		$	76		$	77		$	62

Pension and OPEB costs for Power, PSE&G and PSEG’s other subsidiaries are detailed as follows:

	Pension Benefits				OPEB				Pension Benefits				OPEB
	Three Months Ended				Three Months Ended				Nine Months Ended				Nine Months Ended
	September 30,				September 30,				September 30,				September 30,
	2012		2011		2012		2011		2012		2011		2012		2011
	Millions
Power	$	14	$	6	$	5	$	3	$	39	$	24	$	14	$	9
PSE&G	24		9		21		16		73		41		61		51
Other	5		3		—		—		14		11		2		2
Total Benefit Costs	$	43	$	18	$	26	$	19	$	126	$	76	$	77	$	62

During the three months ended March 31, 2012, PSEG contributed its entire planned contribution for the year 2012 of $124 million and $11 million into its pension and postretirement healthcare plans, respectively.