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Financial Risk Management Activities (Tables)
 9 Months Ended
Sep. 30, 2017
Derivative Instruments and Hedging Activities Disclosures [Line Items]  
Schedule Of Derivative Instruments Fair Value In Balance Sheets
The following tabular disclosure does not include the offsetting of trade receivables and payables.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of September 30, 2017
 
 
 
 
Power (A)
 
PSEG (A)
 
Consolidated
 
 
 
 
Not Designated
 
 
 
 
 
Designated as Hedges
 
 
 
 
Balance Sheet Location
 
Energy-
Related
Contracts
 
Netting
(B)
 
Total
Power
 
Interest
Rate
Swaps
 
Total
Derivatives
 
 
 
 
Millions
 
 
Derivative Contracts
 
 
 
 
 
 
 
 
 
 
 
 
Current Assets
 
$
352

 
$
(268
)
 
$
84

 
$
—

 
$
84

 
 
Noncurrent Assets
 
178

 
(116
)
 
62

 
—

 
62

 
 
Total Mark-to-Market Derivative Assets
 
$
530

 
$
(384
)
 
$
146

 
$
—

 
$
146

 
 
Derivative Contracts
 
 
 
 
 
 
 
 
 
 
 
 
Current Liabilities
 
$
(268
)
 
$
261

 
$
(7
)
 
$
—

 
$
(7
)
 
 
Noncurrent Liabilities
 
(110
)
 
109

 
(1
)
 
—

 
(1
)
 
 
Total Mark-to-Market Derivative (Liabilities)
 
$
(378
)
 
$
370

 
$
(8
)
 
$
—

 
$
(8
)
 
 
Total Net Mark-to-Market Derivative Assets (Liabilities)
 
$
152

 
$
(14
)
 
$
138

 
$
—

 
$
138

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of December 31, 2016
 
 
 
 
Power (A)
 
PSE&G (A)
 
PSEG (A)
 
Consolidated
 
 
 
 
Not Designated
 
 
 
 
 
Not Designated
 
Designated as Hedges
 
 
 
 
Balance Sheet Location
 
Energy-
Related
Contracts
 
Netting
(B)
 
Total
Power
 
Energy-
Related
Contracts
 
Interest
Rate
Swaps
 
Total
Derivatives
 
 
 
 
Millions
 
 
Derivative Contracts
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Current Assets
 
$
435

 
$
(273
)
 
$
162

 
$
—

 
$
1

 
$
163

 
 
Noncurrent Assets
 
122

 
(98
)
 
24

 
—

 
—

 
24

 
 
Total Mark-to-Market Derivative Assets
 
$
557

 
$
(371
)
 
$
186

 
$
—

 
$
1

 
$
187

 
 
Derivative Contracts
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Current Liabilities
 
$
(285
)
 
$
277

 
$
(8
)
 
$
(5
)
 
$
—

 
$
(13
)
 
 
Noncurrent Liabilities
 
(98
)
 
95

 
(3
)
 
—

 
—

 
(3
)
 
 
Total Mark-to-Market Derivative (Liabilities)
 
$
(383
)
 
$
372

 
$
(11
)
 
$
(5
)
 
$
—

 
$
(16
)
 
 
Total Net Mark-to-Market Derivative Assets (Liabilities)
 
$
174

 
$
1

 
$
175

 
$
(5
)
 
$
1

 
$
171

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(A)
Substantially all of 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 September 30, 2017 and December 31, 2016. PSE&G does not have any derivative contracts subject to master netting or similar agreements.
(B)
Represents the netting of fair value balances with the same counterparty (where the right of offset exists) and the application of collateral. All cash collateral received or posted that has been allocated to derivative positions, where the right of offset exists, has been offset on the Condensed Consolidated Balance Sheets. As of September 30, 2017, net cash collateral (received) paid of $(14) million was netted against the corresponding net derivative contract positions. Of the $(14) million as of September 30, 2017, $(7) million was netted against current assets, and $(7) million was netted against noncurrent assets. As of December 31, 2016, net cash collateral (received) paid of $1 million was netted against the corresponding net derivative contract positions. Of the $1 million as of December 31, 2016, $(3) million was netted against noncurrent assets, and $4 million was netted against current liabilities.
Schedule Of Derivative Instruments Designated As Cash Flow Hedges
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 three months and nine months ended September 30, 2017 and 2016.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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)
 
 
 
Three Months Ended
 
 
 
Three Months Ended
 
 
 
September 30,
 
 
 
September 30,
 
 
 
2017
 
2016
 
                              
 
2017
 
2016
 
 
 
 
Millions
 
 
 
Millions
 
 
PSEG
 
 
 
 
 
 
 
 
 
 
 
 
Interest Rate Swaps
 
$
1

 
$
1

 
Interest Expense
 
$
2

 
$
—

 
 
Total PSEG
 
$
1

 
$
1

 
 
 
$
2

 
$
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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)
 
 
 
Nine Months Ended
 
 
 
Nine Months Ended
 
 
 
September 30,
 
 
 
September 30,
 
 
 
2017
 
2016
 
                              
 
2017
 
2016
 
 
 
 
Millions
 
 
 
Millions
 
 
PSEG
 
 
 
 
 
 
 
 
 
 
 
 
Interest Rate Swaps
 
$
1

 
$
3

 
Interest Expense
 
$
2

 
$
—

 
 
Total PSEG
 
$
1

 
$
3

 
 
 
$
2

 
$
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
There were no pre-tax gains (losses) recognized in income on derivatives (ineffective portion) as of September 30, 2017 and
2016.
Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) [Table Text Block]
The following reconciles the AOCI for derivative activity included in the Accumulated Other Comprehensive Loss of PSEG on a pre-tax and after-tax basis.
 
 
 
 
 
 
 
 
Accumulated Other Comprehensive Income
 
Pre-Tax
 
After-Tax
 
 
 
 
Millions
 
 
Balance as of December 31, 2015
 
$
—

 
$
—

 
 
Gain Recognized in AOCI
 
3

 
2

 
 
Less: Gain Reclassified into Income
 
—

 
—

 
 
Balance as of December 31, 2016
 
$
3

 
$
2

 
 
Gain Recognized in AOCI
 
1

 
—

 
 
Less: Gain Reclassified into Income
 
(2
)
 
(1
)
 
 
Balance as of September 30, 2017
 
$
2

 
$
1

 
 
 
 
 
 
 
 
Schedule Of Derivative Instruments Not Designated As Hedging Instruments And Impact On Results Of Operations
The following shows the effect on the Condensed Consolidated Statements of Operations of derivative instruments not designated as hedging instruments or as NPNS for the three months and nine months ended September 30, 2017 and 2016. 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 for which 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
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,
 
 
 
 
 
 
2017
 
2016
 
2017
 
2016
 
 
 
 
 
 
Millions
 
 
PSEG and Power
 
 
 
 
 
 
 
 
 
 
 
 
Energy-Related Contracts
 
Operating Revenues
 
$
25

 
$
125

 
$
221

 
$
255

 
 
Energy-Related Contracts
 
Energy Costs
 
(3
)
 
(11
)
 
(19
)
 
(3
)
 
 
Total PSEG and Power
 
 
 
$
22

 
$
114

 
$
202

 
$
252

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Schedule Of Gross Volume, On Absolute Value Basis For Derivative Contracts
The following reflects the gross volume, on an absolute value basis, of derivatives as of September 30, 2017 and December 31, 2016.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Type
 
Notional
 
Total
 
PSEG
 
Power
 
PSE&G
 
 
 
 
 
 
Millions
 
 
As of September 30, 2017
 
 
 
 
 
 
 
 
 
 
 
 
Natural Gas
 
Dekatherm (Dth)
 
265

 
—

 
265

 
—

 
 
Electricity
 
MWh
 
332

 
—

 
332

 
—

 
 
Financial Transmission Rights (FTRs)
 
MWh
 
5

 
—

 
5

 
—

 
 
Interest Rate Swaps
 
U.S. Dollars
 
500

 
500

 
—

 
—

 
 
As of December 31, 2016
 
 
 
 
 
 
 
 
 
 
 
 
Natural Gas
 
Dth
 
357

 
—

 
348

 
9

 
 
Electricity
 
MWh
 
323

 
—

 
323

 
—

 
 
FTRs
 
MWh
 
9

 
—

 
9

 
—

 
 
Interest Rate Swaps
 
U.S. Dollars
 
500

 
500

 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Power [Member]  
Derivative Instruments and Hedging Activities Disclosures [Line Items]  
Schedule Providing Credit Risk From Others, Net Of Collateral
The following table provides information on Power’s credit risk from others, net of collateral, as of September 30, 2017. 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 Power’s credit risk by credit rating of the counterparties.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Rating
 
Current
Exposure
 
Collateral Held
 
Net
Exposure
 
Number of
Counterparties
>10%
 
Net Exposure of
Counterparties
>10%
 
 
 
 
 
Millions
 
 
 
Millions
 
 
 
Investment Grade
 
$
318

 
$
55

 
$
263

 
2

 
$
128

(A) 
 
 
Non-Investment Grade
 
5

 
1

 
4

 
—

 
—

  
 
 
Total
 
$
323

 
$
56

 
$
267

 
2

 
$
128

  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(A)
Includes net exposure of $97 million with PSE&G.
As of September 30, 2017, collateral held from counterparties where Power had credit exposure included $3 million in cash collateral and $53 million in letters of credit.
As of September 30, 2017, Power had 144 active counterparties.