Guarantees of Debt

9 Months Ended

Sep. 30, 2012

Each series of Power’s Senior Notes, Pollution Control Notes and its syndicated revolving credit facilities are fully and unconditionally and jointly and severally guaranteed by its subsidiaries, PSEG Fossil LLC (Fossil), PSEG Nuclear LLC (Nuclear) and ER&T. The following table presents condensed financial information for the guarantor subsidiaries, as well as Power’s non-guarantor subsidiaries.




	Power			Guarantor Subsidiaries			Other Subsidiaries			Consolidating Adjustments			Consolidated
	Millions
Three Months Ended September 30, 2012
Operating Revenues	$	—		$	1,358		$	36		$	(356	)	$	1,038
Operating Expenses	(1		)	1,095			32			(355		)	771
Operating Income (Loss)	1			263			4			(1		)	267
Equity Earnings (Losses) of Subsidiaries	191			—			—			(191		)	—
Other Income	11			106			—			(13		)	104
Other Deductions	—			(20		)	—			—			(20		)
Other-Than-Temporary Impairments	—			(2		)	—			—			(2		)
Interest Expense	(29		)	(15		)	(5		)	14			(35		)
Income Tax Benefit (Expense)	7			(142		)	1			1			(133		)
Net Income (Loss)	$	181		$	190		$	—		$	(190	)	$	181
Comprehensive Income (Loss)	$	166		$	168		$	—		$	(168	)	$	166
Three Months Ended September 30, 2011
Operating Revenues	$	—		$	1,725		$	29		$	(356	)	$	1,398
Operating Expenses	1			1,241			29			(356		)	915
Operating Income (Loss)	(1		)	484			—			—			483
Equity Earnings (Losses) of Subsidiaries	315			29			—			(344		)	—
Other Income	9			38			—			(10		)	37
Other Deductions	(1		)	(8		)	—			(1		)	(10		)
Other-Than-Temporary Impairments	1			(9		)	—			—			(8		)
Interest Expense	(33		)	(17		)	(3		)	11			(42		)
Income Tax Benefit (Expense)	12			(200		)	1			—			(187		)
Income (Loss) on Discontinued Operations, net of tax	—			—			29			—			29
Net Income (Loss)	$	302		$	317		$	27		$	(344	)	$	302
Comprehensive Income (Loss)	$	222		$	233		$	27		$	(260	)	$	222




	Power			Guarantor Subsidiaries			Other Subsidiaries			Consolidating Adjustments			Consolidated
	Millions
Nine Months Ended September 30, 2012
Operating Revenues	$	—		$	4,560		$	93		$	(1,069	)	$	3,584
Operating Expenses	(1		)	3,663			87			(1,069		)	2,680
Operating Income (Loss)	1			897			6			—			904
Equity Earnings (Losses) of Subsidiaries	567			(4		)	—			(563		)	—
Other Income	35			176			—			(40		)	171
Other Deductions	(7		)	(45		)	—			—			(52		)
Other-Than-Temporary Impairments	—			(14		)	—			—			(14		)
Interest Expense	(89		)	(35		)	(13		)	40			(97		)
Income Tax Benefit (Expense)	31			(409		)	3			1			(374		)
Net Income (Loss)	$	538		$	566		$	(4	)	$	(562	)	$	538
Comprehensive Income (Loss)	$	549		$	556		$	(4	)	$	(552	)	$	549
Nine Months Ended September 30, 2012
Net Cash Provided By (Used In) Operating Activities	$	409		$	1,259		$	(3	)	$	(493	)	$	1,172
Net Cash Provided By (Used In) Investing Activities	$	257		$	(897	)	$	(24	)	$	158		$	(506	)
Net Cash Provided By (Used In) Financing Activities	$	(666	)	$	(368	)	$	26		$	335		$	(673	)
Nine Months Ended September 30, 2011													—
Operating Revenues	$	—		$	5,622		$	106		$	(1,078	)	$	4,650
Operating Expenses	2			4,278			109			(1,078		)	3,311
Operating Income (Loss)	(2		)	1,344			(3		)	—			1,339
Equity Earnings (Losses) of Subsidiaries	917			88			—			(1,005		)	—
Other Income	28			159			—			(31		)	156
Other Deductions	(4		)	(32		)	—			(1		)	(37		)
Other-Than-Temporary Impairments	—			(10		)	—			—			(10		)
Interest Expense	(115		)	(38		)	(13		)	32			(134		)
Income Tax Benefit (Expense)	47			(592		)	6			—			(539		)
Income (Loss) on Discontinued Operations, net of tax	—			—			96			—			96
Net Income (Loss)	$	871		$	919		$	86		$	(1,005	)	$	871
Comprehensive Income (Loss)	$	759		$	761		$	86		$	(847	)	$	759
Nine Months Ended September 30, 2011
Net Cash Provided By (Used In) Operating Activities	$	370		$	2,029		$	(319	)	$	(593	)	$	1,487
Net Cash Provided By (Used In) Investing Activities	$	86		$	(935	)	$	652		$	(821	)	$	(1,018	)
Net Cash Provided By (Used In) Financing Activities	$	(456	)	$	(1,091	)	$	(332	)	$	1,413		$	(466	)




	Power		Guarantor Subsidiaries		Other Subsidiaries		Consolidating Adjustments			Consolidated
	Millions
As of September 30, 2012
Current Assets	$	4,182	$	7,926	$	919	$	(10,646	)	$	2,381
Property, Plant and Equipment, net	88		5,835		948		1			6,872
Investment in Subsidiaries	4,193		740		—		(4,933		)	—
Noncurrent Assets	175		1,631		62		(127		)	1,741
Total Assets	$	8,638	$	16,132	$	1,929	$	(15,705	)	$	10,994
Current Liabilities	$	403	$	10,183	$	984	$	(10,643	)	$	927
Noncurrent Liabilities	456		1,754		204		(126		)	2,288
Long-Term Debt	2,386		—		—		—			2,386
Member’s Equity	5,393		4,195		741		(4,936		)	5,393
Total Liabilities and Member’s Equity	$	8,638	$	16,132	$	1,929	$	(15,705	)	$	10,994
As of December 31, 2011
Current Assets	$	4,311	$	7,248	$	951	$	(9,823	)	$	2,687
Property, Plant and Equipment, net	66		5,715		950		—			6,731
Investment in Subsidiaries	4,185		804		—		(4,989		)	—
Noncurrent Assets	179		1,557		51		(118		)	1,669
Total Assets	$	8,741	$	15,324	$	1,952	$	(14,930	)	$	11,087
Current Liabilities	$	172	$	9,549	$	1,003	$	(9,822	)	$	902
Noncurrent Liabilities	440		1,589		145		(118		)	2,056
Long-Term Debt	2,685		—		—		—			2,685
Member’s Equity	5,444		4,186		804		(4,990		)	5,444
Total Liabilities and Member’s Equity	$	8,741	$	15,324	$	1,952	$	(14,930	)	$	11,087

Power [Member]

Guarantees of Debt




	Power			Guarantor Subsidiaries			Other Subsidiaries			Consolidating Adjustments			Consolidated
	Millions
Three Months Ended September 30, 2012
Operating Revenues	$	—		$	1,358		$	36		$	(356	)	$	1,038
Operating Expenses	(1		)	1,095			32			(355		)	771
Operating Income (Loss)	1			263			4			(1		)	267
Equity Earnings (Losses) of Subsidiaries	191			—			—			(191		)	—
Other Income	11			106			—			(13		)	104
Other Deductions	—			(20		)	—			—			(20		)
Other-Than-Temporary Impairments	—			(2		)	—			—			(2		)
Interest Expense	(29		)	(15		)	(5		)	14			(35		)
Income Tax Benefit (Expense)	7			(142		)	1			1			(133		)
Net Income (Loss)	$	181		$	190		$	—		$	(190	)	$	181
Comprehensive Income (Loss)	$	166		$	168		$	—		$	(168	)	$	166
Three Months Ended September 30, 2011
Operating Revenues	$	—		$	1,725		$	29		$	(356	)	$	1,398
Operating Expenses	1			1,241			29			(356		)	915
Operating Income (Loss)	(1		)	484			—			—			483
Equity Earnings (Losses) of Subsidiaries	315			29			—			(344		)	—
Other Income	9			38			—			(10		)	37
Other Deductions	(1		)	(8		)	—			(1		)	(10		)
Other-Than-Temporary Impairments	1			(9		)	—			—			(8		)
Interest Expense	(33		)	(17		)	(3		)	11			(42		)
Income Tax Benefit (Expense)	12			(200		)	1			—			(187		)
Income (Loss) on Discontinued Operations, net of tax	—			—			29			—			29
Net Income (Loss)	$	302		$	317		$	27		$	(344	)	$	302
Comprehensive Income (Loss)	$	222		$	233		$	27		$	(260	)	$	222




	Power			Guarantor Subsidiaries			Other Subsidiaries			Consolidating Adjustments			Consolidated
	Millions
Nine Months Ended September 30, 2012
Operating Revenues	$	—		$	4,560		$	93		$	(1,069	)	$	3,584
Operating Expenses	(1		)	3,663			87			(1,069		)	2,680
Operating Income (Loss)	1			897			6			—			904
Equity Earnings (Losses) of Subsidiaries	567			(4		)	—			(563		)	—
Other Income	35			176			—			(40		)	171
Other Deductions	(7		)	(45		)	—			—			(52		)
Other-Than-Temporary Impairments	—			(14		)	—			—			(14		)
Interest Expense	(89		)	(35		)	(13		)	40			(97		)
Income Tax Benefit (Expense)	31			(409		)	3			1			(374		)
Net Income (Loss)	$	538		$	566		$	(4	)	$	(562	)	$	538
Comprehensive Income (Loss)	$	549		$	556		$	(4	)	$	(552	)	$	549
Nine Months Ended September 30, 2012
Net Cash Provided By (Used In) Operating Activities	$	409		$	1,259		$	(3	)	$	(493	)	$	1,172
Net Cash Provided By (Used In) Investing Activities	$	257		$	(897	)	$	(24	)	$	158		$	(506	)
Net Cash Provided By (Used In) Financing Activities	$	(666	)	$	(368	)	$	26		$	335		$	(673	)
Nine Months Ended September 30, 2011													—
Operating Revenues	$	—		$	5,622		$	106		$	(1,078	)	$	4,650
Operating Expenses	2			4,278			109			(1,078		)	3,311
Operating Income (Loss)	(2		)	1,344			(3		)	—			1,339
Equity Earnings (Losses) of Subsidiaries	917			88			—			(1,005		)	—
Other Income	28			159			—			(31		)	156
Other Deductions	(4		)	(32		)	—			(1		)	(37		)
Other-Than-Temporary Impairments	—			(10		)	—			—			(10		)
Interest Expense	(115		)	(38		)	(13		)	32			(134		)
Income Tax Benefit (Expense)	47			(592		)	6			—			(539		)
Income (Loss) on Discontinued Operations, net of tax	—			—			96			—			96
Net Income (Loss)	$	871		$	919		$	86		$	(1,005	)	$	871
Comprehensive Income (Loss)	$	759		$	761		$	86		$	(847	)	$	759
Nine Months Ended September 30, 2011
Net Cash Provided By (Used In) Operating Activities	$	370		$	2,029		$	(319	)	$	(593	)	$	1,487
Net Cash Provided By (Used In) Investing Activities	$	86		$	(935	)	$	652		$	(821	)	$	(1,018	)
Net Cash Provided By (Used In) Financing Activities	$	(456	)	$	(1,091	)	$	(332	)	$	1,413		$	(466	)




	Power		Guarantor Subsidiaries		Other Subsidiaries		Consolidating Adjustments			Consolidated
	Millions
As of September 30, 2012
Current Assets	$	4,182	$	7,926	$	919	$	(10,646	)	$	2,381
Property, Plant and Equipment, net	88		5,835		948		1			6,872
Investment in Subsidiaries	4,193		740		—		(4,933		)	—
Noncurrent Assets	175		1,631		62		(127		)	1,741
Total Assets	$	8,638	$	16,132	$	1,929	$	(15,705	)	$	10,994
Current Liabilities	$	403	$	10,183	$	984	$	(10,643	)	$	927
Noncurrent Liabilities	456		1,754		204		(126		)	2,288
Long-Term Debt	2,386		—		—		—			2,386
Member’s Equity	5,393		4,195		741		(4,936		)	5,393
Total Liabilities and Member’s Equity	$	8,638	$	16,132	$	1,929	$	(15,705	)	$	10,994
As of December 31, 2011
Current Assets	$	4,311	$	7,248	$	951	$	(9,823	)	$	2,687
Property, Plant and Equipment, net	66		5,715		950		—			6,731
Investment in Subsidiaries	4,185		804		—		(4,989		)	—
Noncurrent Assets	179		1,557		51		(118		)	1,669
Total Assets	$	8,741	$	15,324	$	1,952	$	(14,930	)	$	11,087
Current Liabilities	$	172	$	9,549	$	1,003	$	(9,822	)	$	902
Noncurrent Liabilities	440		1,589		145		(118		)	2,056
Long-Term Debt	2,685		—		—		—			2,685
Member’s Equity	5,444		4,186		804		(4,990		)	5,444
Total Liabilities and Member’s Equity	$	8,741	$	15,324	$	1,952	$	(14,930	)	$	11,087