XML 105 R34.htm IDEA: XBRL DOCUMENT v2.4.0.6
Financial Risk Management Activities (Tables)
9 Months Ended
Sep. 30, 2012
Schedule Of Derivative Transactions Designated And Effective As Cash Flow Hedges
 
 
 
 
 
 
 
 
As of
 
As of
 
 
 
September 30,
2012
 
December 31,
2011
 
 
 
Millions
 
 
Fair Value of Cash Flow Hedges
$

 
$
57

 
 
Impact on Accumulated Other Comprehensive Income (Loss) (after tax)
$
13

 
$
33

 
 
 
 
 
 
 
Schedule Of Derivative Instruments Fair Value In Balance Sheets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of September 30, 2012
 
 
 
Power
 
PSE&G
 
PSEG
 
Consolidated
 
 
 
Cash Flow
Hedges
 
Non
Hedges
 
 
 
 
 
Non
Hedges
 
Fair Value
Hedges
 
 
 
 
Balance Sheet Location
Energy-
Related
Contracts
 
Energy-
Related
Contracts
 
Netting
(A)
 
Total
Power
 
Energy-
Related
Contracts
 
Interest
Rate
Swaps
 
Total
Derivatives
 
 
 
Millions
 
 
Derivative Contracts
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Current Assets
$
3

 
$
354

 
$
(255
)
 
$
102

 
$
3

 
$
18

 
$
123

 
 
Noncurrent Assets

 
81

 
(59
)
 
22

 
70

 
52

 
144

 
 
Total Mark-to-Market Derivative Assets
$
3

 
$
435

 
$
(314
)
 
$
124

 
$
73

 
$
70

 
$
267

 
 
Derivative Contracts
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Current Liabilities
$
(3
)
 
$
(303
)
 
$
255

 
$
(51
)
 
$

 
$

 
$
(51
)
 
 
Noncurrent Liabilities

 
(63
)
 
57

 
(6
)
 
(106
)
 

 
(112
)
 
 
Total Mark-to-Market Derivative (Liabilities)
$
(3
)
 
$
(366
)
 
$
312

 
$
(57
)
 
$
(106
)
 
$

 
$
(163
)
 
 
Total Net Mark-to-Market Derivative Assets (Liabilities)
$

 
$
69

 
$
(2
)
 
$
67

 
$
(33
)
 
$
70

 
$
104

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of December 31, 2011
 
 
 
Power
 
PSE&G
 
PSEG
 
Consolidated
 
 
 
Cash Flow
Hedges
 
Non
Hedges
 
 
 
 
 
Non
Hedges
 
Fair Value
Hedges
 
 
 
 
Balance Sheet Location
Energy-
Related
Contracts
 
Energy-
Related
Contracts
 
Netting
(A)
 
Total
Power
 
Energy-
Related
Contracts
 
Interest
Rate
Swaps
 
Total
Derivatives
 
 
 
Millions
 
 
Derivative Contracts
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Current Assets
$
55

 
$
532

 
$
(448
)
 
$
139

 
$

 
$
17

 
$
156

 
 
Noncurrent Assets
8

 
121

 
(74
)
 
55

 
4

 
47

 
106

 
 
Total Mark-to-Market Derivative Assets
$
63

 
$
653

 
$
(522
)
 
$
194

 
$
4

 
$
64

 
$
262

 
 
Derivative Contracts
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Current Liabilities
$
(5
)
 
$
(506
)
 
$
387

 
$
(124
)
 
$
(7
)
 
$

 
$
(131
)
 
 
Noncurrent Liabilities
(1
)
 
(76
)
 
53

 
(24
)
 

 
(2
)
 
(26
)
 
 
Total Mark-to-Market Derivative (Liabilities)
$
(6
)
 
$
(582
)
 
$
440

 
$
(148
)
 
$
(7
)
 
$
(2
)
 
$
(157
)
 
 
Total Net Mark-to-Market Derivative Assets (Liabilities)
$
57

 
$
71

 
$
(82
)
 
$
46

 
$
(3
)
 
$
62

 
$
105

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

(A)
Represents the netting of fair value balances with the same counterparty (where the right of offset exists) and the application of collateral. As of September 30, 2012 and December 31, 2011, net cash collateral received of $2 million and $82 million, respectively, was netted against the corresponding net derivative contract positions. Of the $2 million as of September 30, 2012, cash collateral of $(4) million and $(2) million were netted against current assets and noncurrent assets, respectively, and cash collateral of $4 million was netted against current liabilities. Of the $82 million as of December 31, 2011, cash collateral of $(77) million and $(23) million were netted against current assets and noncurrent assets, respectively, and cash collateral of $16 million and $2 million were netted against current liabilities and noncurrent liabilities, respectively.
Schedule Of Derivative Instruments Designated As Cash Flow Hedges
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivatives in
Cash Flow Hedging
Relationships
Amount of
Pre-Tax
Gain (Loss)
Recognized in
AOCI on
Derivatives
(Effective
Portion)
 
Location
of Pre-Tax Gain
(Loss)  Reclassified
from AOCI into
Income
 
Amount of
Pre-Tax
Gain (Loss)
Reclassified
from AOCI
into Income
(Effective
Portion)
 
Location of
Pre-Tax Gain
(Loss) Recognized in
Income on
Derivatives
(Ineffective Portion)
 
Amount of
Pre-Tax
Gain (Loss)
Recognized in
Income on
Derivatives
(Ineffective
Portion)
 
 
Three Months Ended
 
 
 
Three Months Ended
 
 
 
Three Months Ended
 
 
September 30,
 
 
 
September 30,
 
 
 
September 30,
 
 
2012
 
2011
 
 
 
2012
 
2011
 
 
 
2012
 
2011
 
 
 
Millions
 
 
PSEG and Power
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Energy-Related Contracts
$
(3
)
 
$
21

 
Operating Revenues
 
$
15

 
$
60

 
Operating Revenues
 
$
(1
)
 
$

 
 
Total PSEG and Power
$
(3
)
 
$
21

 
 
 
$
15

 
$
60

 
 
 
$
(1
)
 
$

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 








The following shows the effect on the Condensed Consolidated Statements of Operations and on Accumulated Other Comprehensive Income (AOCI) of derivative instruments designated as cash flow hedges for the nine months ended September 30, 2012 and 2011:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivatives in
Cash Flow Hedging
Relationships
Amount of
Pre-Tax
Gain (Loss)
Recognized in
AOCI on
Derivatives
(Effective
Portion)
 
Location
of Pre-Tax Gain
(Loss)  Reclassified
from AOCI into
Income
 
Amount of
Pre-Tax
Gain (Loss)
Reclassified
from AOCI
into Income
(Effective
Portion)
 
Location of
Pre-Tax Gain
(Loss) Recognized in
Income on
Derivatives
(Ineffective Portion)
 
Amount of
Pre-Tax
Gain (Loss)
Recognized in
Income on
Derivatives
(Ineffective
Portion)
 
 
Nine Months
Ended
 
 
 
Nine Months
Ended
 
 
 
Nine Months
Ended
 
 
September 30,
 
 
 
September 30,
 
 
 
September 30,
 
 
2012
 
2011
 
                              
 
2012
 
2011
 
 
 
2012
 
2011
 
 
 
Millions
 
 
PSEG (A)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Energy-Related Contracts
$
27

 
$
18

 
Operating Revenues
 
$
67

 
$
152

 
Operating Revenues
 
$
(1
)
 
$
1

 
 
Energy-Related Contracts
(4
)
 
1

 
Energy Costs
 
(9
)
 
2

 
 
 

 

 
 
Interest Rate Swaps

 

 
Interest Expense
 
(1
)
 
(1
)
 
 
 

 

 
 
Total PSEG
$
23

 
$
19

 
 
 
$
57

 
$
153

 
 
 
$
(1
)
 
$
1

 
 
Power
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Energy-Related Contracts
$
27

 
$
18

 
Operating Revenues
 
$
67

 
$
152

 
Operating Revenues
 
$
(1
)
 
$
1

 
 
Energy-Related Contracts
(4
)
 
1

 
Energy Costs
 
(9
)
 
2

 
 
 

 

 
 
Total Power
$
23

 
$
19

 
 
 
$
58

 
$
154

 
 
 
$
(1
)
 
$
1

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(A)
Includes amounts for PSEG parent.
Schedule Of Reconciliation For Derivative Activity Included In Accumulated Other Comprehensive Loss
 
 
 
 
 
 
 
Accumulated Other Comprehensive Income
Pre-Tax
 
After-Tax
 
 
 
Millions
 
 
Balance as of December 31, 2011
$
54

 
$
31

 
 
Gain Recognized in AOCI
26

 
15

 
 
Less: Gain Reclassified into Income
(42
)
 
(25
)
 
 
Balance as of June 30, 2012
$
38

 
$
21

 
 
Loss Recognized in AOCI
(3
)
 
(2
)
 
 
Less: Gain Reclassified into Income
(15
)
 
(8
)
 
 
Balance as of September 30, 2012
$
20

 
$
11

 
 
 
 
 
 
 
Schedule Of Derivative Instruments Not Designated As Hedging Instruments And Impact On Results Of Operations
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivatives Not Designated as Hedges
 
Location of Pre-Tax
Gain (Loss)
Recognized in Income
on Derivatives
 
Pre-tax Gain (Loss)
Recognized in Income
on Derivatives
 
 
 
 
 
 
Three Months Ended
 
Nine Months Ended
 
 
 
 
 
 
September 30,
 
September 30,
 
 
 
 
 
 
2012
 
2011
 
2012
 
2011
 
 
 
 
 
 
Millions
 
 
PSEG and Power
 
 
 
 
 
 
 
 
 
 
 
 
Energy-Related Contracts
 
Operating Revenues
 
$
(90
)
 
$
24

 
$
145

 
$
(18
)
 
 
Energy-Related Contracts
 
Energy Costs
 
6

 
(11
)
 
(17
)
 
(10
)
 
 
Total PSEG and Power
 
 
 
$
(84
)
 
$
13

 
$
128

 
$
(28
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Schedule Of Gross Volume, On Absolute Value Basis For Derivative Contracts
 
 
 
 
 
 
 
 
 
 
 
 
 
Type
Notional
 
Total
 
PSEG
 
Power
 
PSE&G
 
 
 
Millions
 
 
As of September 30, 2012
 
 
 
 
 
 
 
 
 
 
 
Natural Gas
Dth
 
588

 

 
385

 
203

 
 
Electricity
MWh
 
179

 

 
179

 

 
 
Capacity
MW days
 
4

 

 

 
4

 
 
FTRs
MWh
 
28

 

 
28

 

 
 
Interest Rate Swaps
US Dollars
 
1,100

 
1,100

 

 

 
 
Coal
Tons
 
1

 

 
1

 

 
 
As of December 31, 2011
 
 
 
 
 
 
 
 
 
 
 
Natural Gas
Dth
 
612

 

 
377

 
235

 
 
Electricity
MWh
 
137

 

 
137

 

 
 
FTRs
MWh
 
12

 

 
12

 

 
 
Interest Rate Swaps
US Dollars
 
1,100

 
1,100

 

 

 
 
Coal
Tons
 
1

 

 
1

 

 
 
 
 
 
 
 
 
 
 
 
 
 
Power [Member]
 
Schedule Providing Credit Risk From Others, Net Of Collateral
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Rating
Current
Exposure
 
Securities
held as
Collateral
 
Net
Exposure
 
Number of
Counterparties
>10%
 
Net Exposure of
Counterparties
>10%
 
 
 
 
Millions
 
 
 
Millions
 
 
 
Investment Grade—External Rating
$
311

 
$
85

 
$
309

 
2

 
$
153

(A) 
 
 
Non-Investment Grade—External Rating
3

 

 
3

 

 

  
 
 
Investment Grade—No External Rating
9

 

 
9

 

 

  
 
 
Non-Investment Grade—No External Rating

 

 

 

 

  
 
 
Total
$
323

 
$
85

 
$
321

 
2

 
$
153

  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(A)
Includes net exposure of $108 million with PSE&G. The remaining net exposure of $45 million is with one nonaffiliated power purchaser which is a regulated investment grade counterparty.