XML 62 R39.htm IDEA: XBRL DOCUMENT v3.8.0.1
Financial Risk Management Activities (Tables)
 3 Months Ended
Mar. 31, 2018
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 March 31, 2018
 
 
 
 
Power (A)
 
Consolidated
 
 
 
 
Not Designated
 
 
 
 
 
 
 
 
Balance Sheet Location
 
Energy-
Related
Contracts
 
Netting
(B)
 
Total
Power
 
Total
Derivatives
 
 
 
 
Millions
 
 
Derivative Contracts
 
 
 
 
 
 
 
 
 
 
Current Assets
 
$
366

 
$
(323
)
 
$
43

 
$
43

 
 
Noncurrent Assets
 
156

 
(108
)
 
48

 
48

 
 
Total Mark-to-Market Derivative Assets
 
$
522

 
$
(431
)
 
$
91

 
$
91

 
 
Derivative Contracts
 
 
 
 
 
 
 
 
 
 
Current Liabilities
 
$
(332
)
 
$
322

 
$
(10
)
 
$
(10
)
 
 
Noncurrent Liabilities
 
(109
)
 
107

 
(2
)
 
(2
)
 
 
Total Mark-to-Market Derivative (Liabilities)
 
$
(441
)
 
$
429

 
$
(12
)
 
$
(12
)
 
 
Total Net Mark-to-Market Derivative Assets (Liabilities)
 
$
81

 
$
(2
)
 
$
79

 
$
79

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of December 31, 2017
 
 
 
 
Power (A)
 
Consolidated
 
 
 
 
Not Designated
 
 
 
 
 
 
 
 
Balance Sheet Location
 
Energy-
Related
Contracts
 
Netting
(B)
 
Total
Power
 
Total
Derivatives
 
 
 
 
Millions
 
 
Derivative Contracts
 
 
 
 
 
 
 
 
 
 
Current Assets
 
$
391

 
$
(362
)
 
$
29

 
$
29

 
 
Noncurrent Assets
 
78

 
(71
)
 
7

 
7

 
 
Total Mark-to-Market Derivative Assets
 
$
469

 
$
(433
)
 
$
36

 
$
36

 
 
Derivative Contracts
 
 
 
 
 
 
 
 
 
 
Current Liabilities
 
$
(403
)
 
$
387

 
$
(16
)
 
$
(16
)
 
 
Noncurrent Liabilities
 
(95
)
 
90

 
(5
)
 
(5
)
 
 
Total Mark-to-Market Derivative (Liabilities)
 
$
(498
)
 
$
477

 
$
(21
)
 
$
(21
)
 
 
Total Net Mark-to-Market Derivative Assets (Liabilities)
 
$
(29
)
 
$
44

 
$
15

 
$
15

 
 
 
 
 
 
 
 
 
 
 
 
(A)
Substantially all of Power’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 March 31, 2018 and December 31, 2017.
(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 March 31, 2018 and December 31, 2017, Power had net cash collateral/margin payments to counterparties of $121 million and $146 million, respectively. Of these net cash/collateral margin payments $(2) million as of March 31, 2018 and $44 million as December 31, 2017 were netted against the corresponding net derivative contract positions. The $(2) million as of March 31, 2018 was netted against current assets. Of the $44 million as of December 31, 2017, $(3) million was netted against current assets, $28 million was netted against current liabilities, and $19 million was netted against noncurrent liabilities.
Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) [Table Text Block]
The following reconciles the Accumulated Other Comprehensive Income 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, 2016
 
$
3

 
$
2

 
 
Gain Recognized in AOCI
 
—

 
—

 
 
Less: Gain Reclassified into Income
 
(3
)
 
(2
)
 
 
Balance as of December 31, 2017
 
$
—

 
$
—

 
 
Gain Recognized in AOCI
 
—

 
—

 
 
Less: Gain Reclassified into Income
 
—

 
—

 
 
Balance as of March 31, 2018
 
$
—

 
$
—

 
 
 
 
 
 
 
 
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 ended March 31, 2018 and 2017. 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 that 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
 
 
 
 
 
 
March 31,
 
 
 
 
 
 
2018
 
2017
 
 
 
 
 
 
Millions
 
 
PSEG and Power
 
 
 
 
 
 
 
 
Energy-Related Contracts
 
Operating Revenues
 
$
40

 
$
78

 
 
Energy-Related Contracts
 
Energy Costs
 
(8
)
 
—

 
 
Total PSEG and Power
 
 
 
$
32

 
$
78

 
 
 
 
 
 
 
 
 
 
Schedule Of Gross Volume, On Absolute Value Basis For Derivative Contracts
The following table summarizes the net notional volume purchases/(sales) of open derivative transactions by commodity as of March 31, 2018 and December 31, 2017.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Type
 
Notional
 
Total
 
PSEG
 
Power
 
PSE&G
 
 
 
 
 
 
Millions
 
 
As of March 31, 2018
 
 
 
 
 
 
 
 
 
 
 
 
Natural Gas
 
Dekatherm (Dth)
 
237

 
—

 
237

 
—

 
 
Electricity
 
MWh
 
(74
)
 
—

 
(74
)
 
—

 
 
Financial Transmission Rights (FTRs)
 
MWh
 
5

 
—

 
5

 
—

 
 
As of December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
 
Natural Gas
 
Dth
 
154

 
—

 
154

 
—

 
 
Electricity
 
MWh
 
(63
)
 
—

 
(63
)
 
—

 
 
FTRs
 
MWh
 
6

 
—

 
6

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
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 ER&T wholesale counterparties, net of collateral, as of March 31, 2018. 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.
As of March 31, 2018, 99% of the net credit exposure for Power’s operations was with investment grade counterparties. Credit exposure is defined as any positive results of netting accounts receivable/accounts payable and the forward value of open positions (which includes all financial instruments including derivatives, NPNS and non-derivatives).
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Rating
 
Current
Exposure
 
Securities held as Collateral
 
Net
Exposure
 
Number of
Counterparties
>10%
 
Net Exposure of
Counterparties
>10%
 
 
 
 
 
Millions
 
 
 
Millions
 
 
 
Investment Grade
 
$
337

 
$
12

 
$
325

 
1

 
$
191

(A) 
 
 
Non-Investment Grade
 
3

 
—

 
3

 
—

 
—

  
 
 
Total
 
$
340

 
$
12

 
$
328

 
1

 
$
191

  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(A)
Represents net exposure with PSE&G.
As of March 31, 2018, collateral held from counterparties where Power had credit exposure was comprised of $12 million in letters of credit.
As of March 31, 2018, Power had 142 active counterparties.