XML 59 R42.htm IDEA: XBRL DOCUMENT v3.23.2
Fair Value Measurements (Tables)
 6 Months Ended
Jun. 30, 2023
Fair Value Disclosures [Abstract]  
PSEG's, Power's And PSE&G's Respective Assets And (Liabilities) Measured At Fair Value On A Recurring Basis The following tables present information about PSEG’s and PSE&G’s respective assets and (liabilities) measured at fair value on a recurring basis as of June 30, 2023 and December 31, 2022, including the fair value measurements and the levels of inputs used in determining those fair values. Amounts shown for PSEG include the amounts shown for PSE&G.
Recurring Fair Value Measurements as of June 30, 2023
DescriptionTotal
Netting (E)		Quoted Market Prices for Identical Assets
(Level 1)		Significant Other Observable Inputs (Level 2)Significant Unobservable Inputs (Level 3)
Millions
PSEG
Assets:
Cash Equivalents (A)$480 $— $480 $— $— 
Derivative Contracts:
Energy-Related Contracts (B)$140 $(1,260)$5 $1,395 $— 
Interest Rate Swaps (C)$13 $— $— $13 $— 
NDT Fund (D)
Equity Securities$1,189 $— $1,189 $— $— 
Debt Securities—U.S. Treasury$277 $— $— $277 $— 
Debt Securities—Govt Other$384 $— $— $384 $— 
Debt Securities—Corporate$531 $— $— $531 $— 
Rabbi Trust (D)
Equity Securities$21 $— $21 $— $— 
Debt Securities—U.S. Treasury$59 $— $— $59 $— 
Debt Securities—Govt Other$33 $— $— $33 $— 
Debt Securities—Corporate$72 $— $— $72 $— 
Liabilities:
Derivative Contracts:
Energy-Related Contracts (B)$(74)$1,543 $(1)$(1,612)$(4)
PSE&G
Assets:
Cash Equivalents (A)$100 $— $100 $— $— 
Rabbi Trust (D)
Equity Securities$4 $— $4 $— $— 
Debt Securities—U.S. Treasury$11 $— $— $11 $— 
Debt Securities—Govt Other$6 $— $— $6 $— 
Debt Securities—Corporate$12 $— $— $12 $— 
Recurring Fair Value Measurements as of December 31, 2022
DescriptionTotalNetting  (E)Quoted Market Prices for Identical Assets
(Level 1)		Significant Other Observable Inputs (Level 2)Significant Unobservable Inputs (Level 3)
Millions
PSEG
Assets:
Cash Equivalents (A)$385 $— $385 $— $— 
Derivative Contracts:
Energy-Related Contracts (B)$29 $(2,321)$42 $2,307 $1 
Interest Rate Swaps (C)$4 $— $— $4 $— 
NDT Fund (D)
Equity Securities$1,072 $— $1,072 $— $— 
Debt Securities—U.S. Treasury$288 $— $— $288 $— 
Debt Securities—Govt Other$339 $— $— $339 $— 
Debt Securities—Corporate$529 $— $— $529 $— 
Rabbi Trust (D)
Equity Securities$20 $— $20 $— $— 
Debt Securities—U.S. Treasury$57 $— $— $57 $— 
Debt Securities—Govt Other$32 $— $— $32 $— 
Debt Securities—Corporate$74 $— $— $74 $— 
Liabilities:
Derivative Contracts:
Energy-Related Contracts (B)$(154)$3,432 $(3)$(3,537)$(46)
Interest Rate Swaps (C)$(3)$— $— $(3)$— 
PSE&G
Assets:
Cash Equivalents (A)$165 $— $165 $— $— 
Rabbi Trust (D)
Equity Securities$3 $— $3 $— $— 
Debt Securities—U.S. Treasury$10 $— $— $10 $— 
Debt Securities—Govt Other$6 $— $— $6 $— 
Debt Securities—Corporate$13 $— $— $13 $— 
(A)Represents money market mutual funds.
(B)Level 1—These contracts represent natural gas futures contracts executed on NYMEX, and are being valued solely on settled pricing inputs which come directly from the exchange.
Level 2—Fair values for energy-related contracts are obtained primarily using a market-based approach. Most derivative contracts (forward purchase or sale contracts and swaps) are valued using settled prices from similar assets and liabilities from an exchange, such as NYMEX, ICE and Nodal Exchange, or auction prices. Prices used in the valuation process are also corroborated independently by management to determine that values are based on actual transaction data or, in the absence of transactions, bid and offers for the day. Examples may include certain exchange and non-exchange traded capacity and electricity contracts and natural gas physical or swap contracts based on market prices, basis adjustments and other premiums where adjustments and premiums are not considered significant to the overall inputs.
Level 3—Unobservable inputs are used for the valuation of certain contracts. See “Additional Information Regarding Level 3 Measurements” below for more information on the utilization of unobservable inputs.
(C)Interest rate swaps are valued using quoted prices on commonly quoted intervals, which are interpolated for periods different than the quoted intervals, as inputs to a market valuation model. Market inputs can generally be verified and model selection does not involve significant management judgement.
(D)The fair value measurement table excludes cash and foreign currency of $2 million in the NDT Fund as of June 30, 2023 and December 31, 2022. The NDT Fund maintains investments in various equity and fixed income securities. The Rabbi Trust maintains investments in a Russell 3000 index fund and various fixed income securities. These
securities are generally valued with prices that are either exchange provided (equity securities) or market transactions for comparable securities and/or broker quotes (fixed income securities).
Level 1—Investments in marketable equity securities within the NDT Fund are primarily investments in common stocks across a broad range of industries and sectors. Most equity securities are priced utilizing the principal market close price or, in some cases, midpoint, bid or ask price. Certain other equity securities in the NDT and Rabbi Trust Funds consist primarily of investments in money market funds which seek a high level of current income as is consistent with the preservation of capital and the maintenance of liquidity. To pursue its goals, the funds normally invest in diversified portfolios of high quality, short-term, dollar-denominated debt securities and government securities. The funds’ net asset value is priced and published daily. The Rabbi Trust’s Russell 3000 index fund is valued based on quoted prices in an active market and can be redeemed daily without restriction.
Level 2—NDT and Rabbi Trust fixed income securities include investment grade corporate bonds, collateralized mortgage obligations, asset-backed securities and certain government and U.S. Treasury obligations or Federal Agency asset-backed securities and municipal bonds with a wide range of maturities. Since many fixed income securities do not trade on a daily basis, they are priced using an evaluated pricing methodology 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. Certain short-term investments are valued using observable market prices or market parameters such as time-to-maturity, coupon rate, quality rating and current yield.
(E)Represents the netting of fair value balances with the same counterparty (where the right of offset exists) and the application of collateral. See Note 12. Financial Risk Management Activities for additional detail.
Schedule of Fair Value of Debt The estimated fair values, carrying amounts and methods used to determine the fair value of long-term debt as of June 30, 2023 and December 31, 2022 are included in the following table and accompanying notes.
As ofAs of
June 30, 2023December 31, 2022
Carrying
Amount		Fair
Value		Carrying
Amount		Fair
Value
Millions
Long-Term Debt:
PSEG (A)$4,127 $3,828 $4,124 $3,808 
PSE&G (A)13,092 11,603 12,696 11,106 
PSEG Power (B)1,250 1,250 1,250 1,250 
Total Long-Term Debt$18,469 $16,681 $18,070 $16,164 
(A)Given that these bonds do not trade actively, the fair value amounts of taxable debt securities (primarily Level 2 measurements) are generally determined by a valuation model using market-based measurements that are processed through a rules-based pricing methodology. The fair value amounts above do not represent the price at which the outstanding debt may be called for redemption by each issuer under their respective debt agreements.
(B)Private term loan with book value approximating fair value (Level 2 measurement).