Pension, OPEB and Savings Plans (Tables)

12 Months Ended

Dec. 31, 2017

Schedule of Defined Benefit Plans Disclosures

The following table provides a roll-forward of the changes in the benefit obligation and the fair value of plan assets during each of the two years in the periods ended December 31, 2017 and 2016. It also provides the funded status of the plans and the amounts recognized and amounts not recognized on the Consolidated Balance Sheets at the end of both years.




	Pension Benefits						Other Benefits
	2017			2016			2017			2016
	Millions
Change in Benefit Obligation
Benefit Obligation at Beginning of Year (A)	$	5,772		$	5,522		$	1,754		$	1,612
Service Cost	114			109			17			17
Interest Cost	204			202			63			59
Actuarial (Gain) Loss	564			219			199			127
Gross Benefits Paid	(295		)	(282		)	(57		)	(57		)
Plan Amendments	—			2			—			(4		)
Benefit Obligation at End of Year (A)	$	6,359		$	5,772		$	1,976		$	1,754
Change in Plan Assets
Fair Value of Assets at Beginning of Year	$	5,193		$	5,039		$	420		$	374
Actual Return on Plan Assets	903			403			77			32
Employer Contributions	11			33			71			71
Gross Benefits Paid	(295		)	(282		)	(57		)	(57		)
Fair Value of Assets at End of Year	$	5,812		$	5,193		$	511		$	420
Funded Status
Funded Status (Plan Assets less Benefit Obligation)	$	(547	)	$	(579	)	$	(1,465	)	$	(1,334	)
Additional Amounts Recognized in the Consolidated Balance Sheets
Current Accrued Benefit Cost	(10		)	(11		)	(10		)	(10		)
Noncurrent Accrued Benefit Cost	(537		)	(568		)	(1,455		)	(1,324		)
Amounts Recognized	$	(547	)	$	(579	)	$	(1,465	)	$	(1,334	)
Additional Amounts Recognized in Accumulated Other Comprehensive Income (Loss), Regulated Assets and Deferred Assets (B)
Prior Service Cost	$	(46	)	$	(63	)	$	(3	)	$	(14	)
Net Actuarial Loss	1,721			1,763			629			523
Total	$	1,675		$	1,700		$	626		$	509


(A)	Represents projected benefit obligation for pension benefits and the accumulated postretirement benefit obligation for other benefits. The vested benefit obligation is the actuarial present value of the vested benefits to which the employee is currently entitled but based on the employee’s expected date of separation of retirement.

(B)

Includes $683 million ($406 million, after-tax) and $679 million ($398 million, after-tax) in Accumulated Other Comprehensive Loss related to Pension and OPEB as of December 31, 2017 and 2016, respectively. Also includes Regulatory Assets of $1,485 million and Deferred Assets of $133 million as of December 31, 2017 and Regulatory Assets of $1,396 million and Deferred Assets of $134 million as of December 31, 2016.

The following table provides a roll-forward of the changes in Servco’s benefit obligation and the fair value of its plan assets during the years ended December 31, 2017 and 2016. It also provides the funded status of the plans and the amounts recognized and amounts not recognized on the Consolidated Balance Sheets at the end of both years.




	Pension Benefits						Other Benefits
	2017			2016			2017			2016
				Millions
Change in Benefit Obligation
Benefit Obligation at Beginning of Year	$	262		$	211		$	452		$	375
Service Cost	27			24			15			12
Interest Cost	11			9			19			17
Actuarial (Gain) Loss	22			14			60			50
Gross Benefits Paid	(2		)	(1		)	(4		)	(2		)
Plan Amendments	—			5			—			—
Benefit Obligation at End of Year (A)	$	320		$	262		$	542		$	452
Change in Plan Assets
Fair Value of Assets at Beginning of Year	$	134		$	97		$	—		$	—
Actual Return on Plan Assets	24			10			—			—
Employer Contributions	35			28			4			2
Gross Benefits Paid	(2		)	(1		)	(4		)	(2		)
Fair Value of Assets at End of Year	$	191		$	134		$	—		$	—
Funded Status
Funded Status (Plan Assets less Benefit Obligation)	$	(129	)	$	(128	)	$	(542	)	$	(452	)
Additional Amounts Recognized in the Consolidated Balance Sheets
Accrued Pension Costs of Servco	$	(129	)	$	(128	)	N/A			N/A
OPEB Costs of Servco	N/A			N/A			(542		)	(452		)
Amounts Recognized (B)	$	(129	)	$	(128	)	$	(542	)	$	(452	)


(A)	Represents projected benefit obligation for pension benefits and the accumulated postretirement benefit obligation for other benefits. The vested benefit obligation is the actuarial present value of the vested benefits to which the employee is currently entitled but based on the employee’s expected date of separation of retirement.


(B)	Amounts equal to the accrued pension and OPEB costs of Servco are offset in Long-Term Receivable of VIE on PSEG’s Consolidated Balance Sheets.

Components Of Net Periodic Benefit Cost

The following table provides the components of net periodic benefit cost for the years ended December 31, 2017, 2016 and 2015.




	Pension Benefits Years Ended December 31,									Other Benefits Years Ended December 31,
	2017			2016			2015			2017			2016			2015
	Millions
Components of Net Periodic Benefit Cost
Service Cost	$	114		$	109		$	123		$	17		$	17		22
Interest Cost	204			202			234			63			59			67
Expected Return on Plan Assets	(394		)	(394		)	(414		)	(34		)	(31		)	(31		)
Amortization of Net
Prior Service Credit	(18		)	(19		)	(19		)	(11		)	(14		)	(14		)
Actuarial Loss	97			158			150			51			40			43
Net Periodic Benefit Cost	$	3		$	56		$	74		$	86		$	71		$	87

Schedule Of Pension And OPEB Costs

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




	Pension Benefits Years Ended December 31,							Other Benefits Years Ended December 31,
	2017			2016		2015		2017		2016		2015
	Millions
PSE&G	$	(4	)	$	29	$	40	$	54	$	43	$	55
Power	1			16		21		27		23		27
Other	6			11		13		5		5		5
Total Benefit Cost	$	3		$	56	$	74	$	86	$	71	$	87

Schedule of Amounts Recognized in Other Comprehensive Income (Loss)

The following table provides the pre-tax changes recognized in Accumulated Other Comprehensive Income (Loss), Regulatory Assets and Deferred Assets:




	Pension						OPEB
	2017			2016			2017			2016
	Millions
Net Actuarial (Gain) Loss in Current Period	$	55		$	211		$	156		$	125
Amortization of Net Actuarial Gain (Loss)	(97		)	(158		)	(50		)	(40		)
Prior Service Cost (Credit) in current period	—			1			—			(3		)
Amortization of Prior Service Credit	18			19			11			14
Total	$	(24	)	$	73		$	117		$	96

Schedule of Amounts in Accumulated Other Comprehensive Income (Loss) to be Recognized over Next Fiscal Year

Amounts that are expected to be amortized from Accumulated Other Comprehensive Loss, Regulatory Assets and Deferred Assets into Net Periodic Benefit Cost in 2018 are as follows:




	Pension Benefits			Other Benefits
	2018			2018
	Millions
Actuarial Loss	$	85		$	64
Prior Service Credit	$	(18	)	$	(1	)

Schedule of Assumptions Used

The following assumptions were used to determine the benefit obligations of Servco:




	Pension Benefits						Other Benefits
	2017		2016		2015		2017			2016			2015
Weighted-Average Assumptions Used to Determine Benefit Obligations as of December 31
Discount Rate	3.90	%	4.61	%	4.92	%	3.96		%	4.71		%	4.97		%
Rate of Compensation Increase	3.25	%	3.25	%	3.25	%	3.25		%	3.25		%	3.25		%
Assumed Health Care Cost Trend Rates as of December 31
Health Care Costs
Immediate Rate							7.69		%	7.55		%	7.55		%
Ultimate Rate							4.75		%	4.75		%	4.75		%
Year Ultimate Rate Reached							2026			2025			2025
							Millions
Effect of a 1% Increase in the Assumed Rate of Increase in Health Care Benefit Costs
Postretirement Benefit Obligation							$	131		$	97		$	75
Effect of a 1% Decrease in the Assumed Rate of Increase in Health Care Benefit Costs
Postretirement Benefit Obligation							$	(99	)	$	(75	)	$	(60	)

The following assumptions were used to determine the benefit obligations and net periodic benefit costs:




	Pension Benefits						Other Benefits
	2017		2016		2015		2017			2016			2015
Weighted-Average Assumptions Used to Determine Benefit Obligations as of December 31
Discount Rate	3.73	%	4.29	%	4.54	%	3.76		%	4.37		%	4.58		%
Rate of Compensation Increase	3.90	%	3.61	%	3.61	%	3.90		%	3.61		%	3.61		%
Weighted-Average Assumptions Used to Determine Net Periodic Benefit Cost for Years Ended December 31
Discount Rate	4.29	%	4.54	%	4.20	%	4.37		%	4.58		%	4.21		%
Service Cost Interest Rate	4.53	%	4.81	%	4.20	%	4.64		%	4.87		%	4.21		%
Interest Cost Interest Rate	3.63	%	3.75	%	4.20	%	3.69		%	3.76		%	4.21		%
Expected Return on Plan Assets	7.80	%	8.00	%	8.00	%	7.80		%	8.00		%	8.00		%
Rate of Compensation Increase	3.61	%	3.61	%	3.61	%	3.61		%	3.61		%	3.61		%
Assumed Health Care Cost Trend Rates as of December 31
Health Care Costs
Immediate Rate							7.93		%	7.55		%	7.75		%
Ultimate Rate							4.75		%	4.75		%	4.75		%
Year Ultimate Rate Reached							2026			2025			2025
							Millions
Effect of a 1% Increase in the Assumed Rate of Increase in Health Care Benefit Costs
Total of Service Cost and Interest Cost							$	13		$	11		$	12
Postretirement Benefit Obligation							$	240		$	191		$	194
Effect of a 1% Decrease in the Assumed Rate of Increase in Health Care Benefit Costs
Total of Service Cost and Interest Cost							$	(10	)	$	(9	)	$	(10	)
Postretirement Benefit Obligation							$	(198	)	$	(160	)	$	(160	)

Schedule of Allocation of Plan Assets

The following table provides the percentage of fair value of total plan assets for each major category of plan assets held for the qualified pension and OPEB plans as of the measurement date, December 31:




	As of December 31,
Investments	2017		2016
Equity Securities	69	%	70	%
Debt Securities	29		28
Other Investments	2		2
Total Percentage	100	%	100	%

The following tables present information about Servco’s investments measured at fair value on a recurring basis as of December 31, 2017 and 2016, including the fair value measurements and the levels of inputs used in determining those fair values.




	Recurring Fair Value Measurements as of December 31, 2017
			Quoted Market Prices for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
Description	Total		(Level 1)		(Level 2)		(Level 3)
	Millions
Commingled Equities (A)	$	137	$	—	$	137	$	—
Commingled Bonds (A)	54		—		54		—
Total	$	191	$	—	$	191	$	—




	Recurring Fair Value Measurements as of December 31, 2016
			Quoted Market Prices for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
Description	Total		(Level 1)		(Level 2)		(Level 3)
	Millions
Commingled Equities (A)	$	96	$	—	$	96	$	—
Commingled Bonds (A)	38		—		38		—
Total	$	134	$	—	$	134	$	—


(A)	Investments in commingled equity and bond funds have a readily determinable fair value as they publish a daily NAV available to investors which is the basis for current transactions and contain certain redemption restrictions requiring advance notice of one to two days for withdrawals (Level 2).

Schedule of Effect of Significant Unobservable Inputs, Changes in Plan Assets

The following tables present information about the investments measured at fair value on a recurring basis as of December 31, 2017 and 2016, including the fair value measurements and the levels of inputs used in determining those fair values.




	Recurring Fair Value Measurements as of December 31, 2017
			Quoted Market Prices for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
Description	Total		(Level 1)		(Level 2)		(Level 3)
	Millions
Cash Equivalents (A)	$	133	$	117	$	16	$	—
Equity Securities
Common Stock (B)	1,275		1,275		—		—
Commingled (C)	1,401		1,218		183		—
Preferred Stock (B)	6		6		—		—
Debt Securities (D)
U.S. Treasury	571		—		571		—
Government—Other	272		—		272		—
Corporate	963		—		963		—
Subtotal Fair Value	$	4,621	$	2,616	$	2,005	$	—
Measured at net asset value practical expedient
Commingled—Equities (E)	1,675
Private Equity (F)	14
Total Fair Value (G)	$	6,310




	Recurring Fair Value Measurements as of December 31, 2016
			Quoted Market Prices for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
Description	Total		(Level 1)		(Level 2)		(Level 3)
	Millions
Cash Equivalents (A)	$	107	$	105	$	2	$	—
Equity Securities
Common Stock (B)	944		944		—		—
Commingled (C)	1,387		1,247		140		—
Preferred Stock (B)	1		1		—		—
Debt Securities (D)
U.S. Treasury	441		—		441		—
Government—Other	263		—		263		—
Corporate	836		—		836		—
Subtotal Fair Value	$	3,979	$	2,297	$	1,682	$	—
Measured at net asset value practical expedient
Commingled—Equities (E)	1,604
Private Equity (F)	16
Total Fair Value (G)	$	5,599


(A)	The Collective Investment Fund publishes a daily net asset value (NAV) which participants may use for daily redemptions without restrictions (Level 1). Certain temporary investments are valued using inputs such as time-to-maturity, coupon rate, quality rating and current yield (Level 2).


(B)	Common stocks and preferred stocks are measured using observable data in active markets and considered Level 1.


(C)	Commingled Funds that allow daily redemption at their daily published NAV without restrictions are classified as Level 1. Commingled Funds that publish daily NAV but with certain near term redemption restrictions which prevent redemption at the published daily NAV are classified as Level 2.

(D)

Debt securities include mainly investment grade corporate and municipal bonds, US Treasury obligations and Federal Agency asset-backed securities with a wide range of maturities. These investments are valued using an evaluated pricing approach that varies by asset class and reflects observable market information such as the most recent exchange price or quoted bid for similar securities. Market-based standard inputs typically include benchmark yields, reported trades, broker/dealer quotes and issuer spreads or the most recent quoted for similar securities which are a Level 2 measure.

(E)

In 2016, as part of the implementation of the accounting guidance on investments measured at fair value using NAV as a practical expedient, certain commingled equity funds have been removed from the fair value hierarchy as they are measured at fair value using the NAV per share (or its equivalent) practical expedient. These funds do not meet the definition of readily determinable fair value due to limitations in published NAV (last business day of the month) and include certain redemption restrictions ranging from five to fifteen days advance notice prior to redemption days and limitations on withdrawals over 25% of the total fund. The objectives of these funds are mainly tracking the S&P Index or achieving long-term growth through investment in foreign equity securities and the MSCI Emerging Markets Index.

(F)

Private equity investments primarily include various limited partnerships that invest in either operating companies through acquisitions or developing a portfolio of non-US distressed investments to maximize total return on capital. These investments are valued at NAV (or its equivalent) on an annual basis and have significant redemption restrictions preventing redemption until fund liquidation and limited ability to sell these investments. Fund liquidation is not expected to occur for several more years. These investments have been removed from the fair value hierarchy in accordance with the guidance on NAV practical expedient.


(G)	Excludes net receivable of $13 million and $14 million at December 31, 2017 and 2016, respectively, which consists of interest, dividends and receivables and payables related to pending securities sales and purchases.

Schedule Of Percentage Of Fair Value Of Total Plan Assets

The following table provides the percentage of fair value of total plan assets for each major category of plan assets held for the qualified pension and OPEB plans of Servco as of the measurement date, December 31:




	As of December 31,
Investments	2017		2016
Equity Securities	72	%	71	%
Debt Securities	28		29
Total Percentage	100	%	100	%

Schedule of Expected Benefit Payments

The following pension benefit and postretirement benefit payments are expected to be paid to Servco’s plan participants:




Year	Pension Benefits		Other Benefits
	Millions
2018	$	3	$	4
2019	4		6
2020	5		8
2021	7		9
2022	9		12
2023-2027	78		87
Total	$	106	$	126

The following pension benefit and postretirement benefit payments are expected to be paid to plan participants.




Year	Pension Benefits		Other Benefits
	Millions
2018	$	337	$	88
2019	331		92
2020	341		96
2021	352		101
2022	364		105
2023-2027	1,954		560
Total	$	3,679	$	1,042

Schedule Of Amount Paid For Employer Matching Contributions

The amount paid for employer matching contributions to the plans for PSEG, PSE&G and Power are detailed as follows:




	Thrift Plan and Savings Plan
	Years Ended December 31,
	2017		2016		2015
	Millions
PSE&G	$	25	$	24	$	22
Power	11		12		12
Other	5		5		5
Total Employer Matching Contributions	$	41	$	41	$	39