Guarantees of Debt

9 Months Ended

Sep. 30, 2013

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, PSEG Nuclear LLC and PSEG Energy Resources & Trade LLC. 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, 2013
Operating Revenues	$	—		$	1,511		$	66		$	(408	)	$	1,169
Operating Expenses	2			1,145			62			(409		)	800
Operating Income (Loss)	(2		)	366			4			1			369
Equity Earnings (Losses) of Subsidiaries	226			(1		)	—			(225		)	—
Other Income	8			47			—			(10		)	45
Other Deductions	1			(11		)	—			(1		)	(11		)
Other-Than-Temporary Impairments	—			(3		)	—			—			(3		)
Interest Expense	(19		)	(13		)	(4		)	10			(26		)
Income Tax Benefit (Expense)	7			(160		)	—			—			(153		)
Net Income (Loss)	$	221		$	225		$	—		$	(225	)	$	221
Comprehensive Income (Loss)	$	245		$	242		$	—		$	(242	)	$	245
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




	Power			Guarantor Subsidiaries			Other Subsidiaries			Consolidating Adjustments			Consolidated
	Millions
Nine Months Ended September 30, 2013
Operating Revenues	$	—		$	4,849		$	133		$	(1,176	)	$	3,806
Operating Expenses	6			3,894			123			(1,176		)	2,847
Operating Income (Loss)	(6		)	955			10			—			959
Equity Earnings (Losses) of Subsidiaries	588			(3		)	—			(585		)	—
Other Income	27			130			—			(30		)	127
Other Deductions	(9		)	(40		)	—			—			(49		)
Other-Than-Temporary Impairments	—			(7		)	—			—			(7		)
Interest Expense	(72		)	(29		)	(14		)	30			(85		)
Income Tax Benefit (Expense)	34			(419		)	2			—			(383		)
Net Income (Loss)	$	562		$	587		$	(2	)	$	(585	)	$	562
Comprehensive Income (Loss)	$	611		$	612		$	(2	)	$	(610	)	$	611
Nine Months Ended September 30, 2013
Net Cash Provided By (Used In) Operating Activities	$	425		$	1,360		$	5		$	(506	)	$	1,284
Net Cash Provided By (Used In) Investing Activities	$	569		$	(869	)	$	(1	)	$	11		$	(290	)
Net Cash Provided By (Used In) Financing Activities	$	(990	)	$	(492	)	$	(4	)	$	494		$	(992	)
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	)




	Power		Guarantor Subsidiaries		Other Subsidiaries		Consolidating Adjustments			Consolidated
	Millions
As of September 30, 2013
Current Assets	$	4,065	$	8,609	$	957	$	(11,941	)	$	1,690
Property, Plant and Equipment, net	81		6,059		922		—			7,062
Investment in Subsidiaries	4,331		730		—		(5,061		)	—
Noncurrent Assets	197		1,842		56		(126		)	1,969
Total Assets	$	8,674	$	17,240	$	1,935	$	(17,128	)	$	10,721
Current Liabilities	$	752	$	10,778	$	997	$	(11,941	)	$	586
Noncurrent Liabilities	522		2,130		208		(125		)	2,735
Long-Term Debt	2,041		—		—		—			2,041
Member’s Equity	5,359		4,332		730		(5,062		)	5,359
Total Liabilities and Member’s Equity	$	8,674	$	17,240	$	1,935	$	(17,128	)	$	10,721
As of December 31, 2012
Current Assets	$	3,922	$	8,084	$	940	$	(10,712	)	$	2,234
Property, Plant and Equipment, net	80		5,988		950		—			7,018
Investment in Subsidiaries	4,317		733		—		(5,050		)	—
Noncurrent Assets	201		1,660		60		(141		)	1,780
Total Assets	$	8,520	$	16,465	$	1,950	$	(15,903	)	$	11,032
Current Liabilities	$	482	$	10,187	$	1,010	$	(10,712	)	$	967
Noncurrent Liabilities	559		1,960		207		(140		)	2,586
Long-Term Debt	2,040		—		—		—			2,040
Member’s Equity	5,439		4,318		733		(5,051		)	5,439
Total Liabilities and Member’s Equity	$	8,520	$	16,465	$	1,950	$	(15,903	)	$	11,032

Power [Member]

Guarantees of Debt




	Power			Guarantor Subsidiaries			Other Subsidiaries			Consolidating Adjustments			Consolidated
	Millions
Three Months Ended September 30, 2013
Operating Revenues	$	—		$	1,511		$	66		$	(408	)	$	1,169
Operating Expenses	2			1,145			62			(409		)	800
Operating Income (Loss)	(2		)	366			4			1			369
Equity Earnings (Losses) of Subsidiaries	226			(1		)	—			(225		)	—
Other Income	8			47			—			(10		)	45
Other Deductions	1			(11		)	—			(1		)	(11		)
Other-Than-Temporary Impairments	—			(3		)	—			—			(3		)
Interest Expense	(19		)	(13		)	(4		)	10			(26		)
Income Tax Benefit (Expense)	7			(160		)	—			—			(153		)
Net Income (Loss)	$	221		$	225		$	—		$	(225	)	$	221
Comprehensive Income (Loss)	$	245		$	242		$	—		$	(242	)	$	245
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




	Power			Guarantor Subsidiaries			Other Subsidiaries			Consolidating Adjustments			Consolidated
	Millions
Nine Months Ended September 30, 2013
Operating Revenues	$	—		$	4,849		$	133		$	(1,176	)	$	3,806
Operating Expenses	6			3,894			123			(1,176		)	2,847
Operating Income (Loss)	(6		)	955			10			—			959
Equity Earnings (Losses) of Subsidiaries	588			(3		)	—			(585		)	—
Other Income	27			130			—			(30		)	127
Other Deductions	(9		)	(40		)	—			—			(49		)
Other-Than-Temporary Impairments	—			(7		)	—			—			(7		)
Interest Expense	(72		)	(29		)	(14		)	30			(85		)
Income Tax Benefit (Expense)	34			(419		)	2			—			(383		)
Net Income (Loss)	$	562		$	587		$	(2	)	$	(585	)	$	562
Comprehensive Income (Loss)	$	611		$	612		$	(2	)	$	(610	)	$	611
Nine Months Ended September 30, 2013
Net Cash Provided By (Used In) Operating Activities	$	425		$	1,360		$	5		$	(506	)	$	1,284
Net Cash Provided By (Used In) Investing Activities	$	569		$	(869	)	$	(1	)	$	11		$	(290	)
Net Cash Provided By (Used In) Financing Activities	$	(990	)	$	(492	)	$	(4	)	$	494		$	(992	)
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	)




	Power		Guarantor Subsidiaries		Other Subsidiaries		Consolidating Adjustments			Consolidated
	Millions
As of September 30, 2013
Current Assets	$	4,065	$	8,609	$	957	$	(11,941	)	$	1,690
Property, Plant and Equipment, net	81		6,059		922		—			7,062
Investment in Subsidiaries	4,331		730		—		(5,061		)	—
Noncurrent Assets	197		1,842		56		(126		)	1,969
Total Assets	$	8,674	$	17,240	$	1,935	$	(17,128	)	$	10,721
Current Liabilities	$	752	$	10,778	$	997	$	(11,941	)	$	586
Noncurrent Liabilities	522		2,130		208		(125		)	2,735
Long-Term Debt	2,041		—		—		—			2,041
Member’s Equity	5,359		4,332		730		(5,062		)	5,359
Total Liabilities and Member’s Equity	$	8,674	$	17,240	$	1,935	$	(17,128	)	$	10,721
As of December 31, 2012
Current Assets	$	3,922	$	8,084	$	940	$	(10,712	)	$	2,234
Property, Plant and Equipment, net	80		5,988		950		—			7,018
Investment in Subsidiaries	4,317		733		—		(5,050		)	—
Noncurrent Assets	201		1,660		60		(141		)	1,780
Total Assets	$	8,520	$	16,465	$	1,950	$	(15,903	)	$	11,032
Current Liabilities	$	482	$	10,187	$	1,010	$	(10,712	)	$	967
Noncurrent Liabilities	559		1,960		207		(140		)	2,586
Long-Term Debt	2,040		—		—		—			2,040
Member’s Equity	5,439		4,318		733		(5,051		)	5,439
Total Liabilities and Member’s Equity	$	8,520	$	16,465	$	1,950	$	(15,903	)	$	11,032