Pension and OPEB

6 Months Ended

Jun. 30, 2012

Pension and OPEB

Note 7. Pension and OPEB

PSEG sponsors several qualified and nonqualified pension plans and OPEB plans covering PSEG’s and its participating affiliates’ current and former employees who meet certain eligibility criteria. The following table provides the components of net periodic benefit costs relating to all qualified and nonqualified pension and OPEB plans on an aggregate basis. OPEB costs are presented net of the federal subsidy expected for prescription drugs under the Medicare Prescription Drug Improvement and Modernization Act of 2003. New federal health care legislation enacted in March 2010 eliminates the tax deductibility of retiree health care costs beginning in 2013, to the extent of federal subsidies received by plan sponsors that provide retiree prescription drug benefits equivalent to Medicare Part D coverage. See Note 13. Income Taxes for additional information.

Pension and OPEB costs for PSEG are detailed as follows:

	Pension Benefits Three Months Ended June 30,						OPEB Three Months Ended June 30,						Pension Benefits Six Months Ended June 30,						OPEB Six Months Ended June 30,
	2012			2011			2012			2011			2012			2011			2012			2011
	Millions
Components of Net Periodic Benefit Cost:
Service Cost	$	25		$	23		$	4		$	3		$	50		$	47		$	8		$	7
Interest Cost		55			58			16			15			111			116			32			30
Expected Return on Plan Assets		(77	)		(82	)		(5	)		(4	)		(153	)		(163	)		(9	)		(8	)
Amortization of Net
Transition Obligation		0			0			0			1			0			0			1			3
Prior Service Cost (Credit)		(4	)		(2	)		(3	)		(3	)		(9	)		(2	)		(7	)		(6	)
Actuarial Loss		42			30			8			4			84			60			16			7
Net Periodic Benefit Cost	$	41		$	27		$	20		$	16		$	83		$	58		$	41		$	33
Effect of Regulatory Asset		0			0			5			5			0			0			10			10
Total Benefit Costs, Including Effect of Regulatory Asset	$	41		$	27		$	25		$	21		$	83		$	58		$	51		$	43

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

	Pension Benefits Three Months Ended June 30,				OPEB Three Months Ended June 30,				Pension Benefits Six Months Ended June 30,				OPEB Six Months Ended June 30,
	2012		2011		2012		2011		2012		2011		2012		2011
	Millions
Power	$	12	$	8	$	4	$	3	$	25	$	18	$	9	$	6
PSE&G		25		15		20		17		49		32		40		35
Other		4		4		1		1		9		8		2		2
Total Benefit Costs	$	41	$	27	$	25	$	21	$	83	$	58	$	51	$	43

During the three months ended March 31, 2012, PSEG contributed its entire planned contribution for the year 2012 of $124 million and $11 million into its pension and postretirement healthcare plans, respectively.

Power [Member]

Pension and OPEB

Note 7. Pension and OPEB

PSEG sponsors several qualified and nonqualified pension plans and OPEB plans covering PSEG’s and its participating affiliates’ current and former employees who meet certain eligibility criteria. The following table provides the components of net periodic benefit costs relating to all qualified and nonqualified pension and OPEB plans on an aggregate basis. OPEB costs are presented net of the federal subsidy expected for prescription drugs under the Medicare Prescription Drug Improvement and Modernization Act of 2003. New federal health care legislation enacted in March 2010 eliminates the tax deductibility of retiree health care costs beginning in 2013, to the extent of federal subsidies received by plan sponsors that provide retiree prescription drug benefits equivalent to Medicare Part D coverage. See Note 13. Income Taxes for additional information.

Pension and OPEB costs for PSEG are detailed as follows:

	Pension Benefits Three Months Ended June 30,						OPEB Three Months Ended June 30,						Pension Benefits Six Months Ended June 30,						OPEB Six Months Ended June 30,
	2012			2011			2012			2011			2012			2011			2012			2011
	Millions
Components of Net Periodic Benefit Cost:
Service Cost	$	25		$	23		$	4		$	3		$	50		$	47		$	8		$	7
Interest Cost		55			58			16			15			111			116			32			30
Expected Return on Plan Assets		(77	)		(82	)		(5	)		(4	)		(153	)		(163	)		(9	)		(8	)
Amortization of Net
Transition Obligation		0			0			0			1			0			0			1			3
Prior Service Cost (Credit)		(4	)		(2	)		(3	)		(3	)		(9	)		(2	)		(7	)		(6	)
Actuarial Loss		42			30			8			4			84			60			16			7
Net Periodic Benefit Cost	$	41		$	27		$	20		$	16		$	83		$	58		$	41		$	33
Effect of Regulatory Asset		0			0			5			5			0			0			10			10
Total Benefit Costs, Including Effect of Regulatory Asset	$	41		$	27		$	25		$	21		$	83		$	58		$	51		$	43

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

	Pension Benefits Three Months Ended June 30,				OPEB Three Months Ended June 30,				Pension Benefits Six Months Ended June 30,				OPEB Six Months Ended June 30,
	2012		2011		2012		2011		2012		2011		2012		2011
	Millions
Power	$	12	$	8	$	4	$	3	$	25	$	18	$	9	$	6
PSE&G		25		15		20		17		49		32		40		35
Other		4		4		1		1		9		8		2		2
Total Benefit Costs	$	41	$	27	$	25	$	21	$	83	$	58	$	51	$	43

During the three months ended March 31, 2012, PSEG contributed its entire planned contribution for the year 2012 of $124 million and $11 million into its pension and postretirement healthcare plans, respectively.

PSE And G [Member]

Pension and OPEB

Note 7. Pension and OPEB

PSEG sponsors several qualified and nonqualified pension plans and OPEB plans covering PSEG’s and its participating affiliates’ current and former employees who meet certain eligibility criteria. The following table provides the components of net periodic benefit costs relating to all qualified and nonqualified pension and OPEB plans on an aggregate basis. OPEB costs are presented net of the federal subsidy expected for prescription drugs under the Medicare Prescription Drug Improvement and Modernization Act of 2003. New federal health care legislation enacted in March 2010 eliminates the tax deductibility of retiree health care costs beginning in 2013, to the extent of federal subsidies received by plan sponsors that provide retiree prescription drug benefits equivalent to Medicare Part D coverage. See Note 13. Income Taxes for additional information.

Pension and OPEB costs for PSEG are detailed as follows:

	Pension Benefits Three Months Ended June 30,						OPEB Three Months Ended June 30,						Pension Benefits Six Months Ended June 30,						OPEB Six Months Ended June 30,
	2012			2011			2012			2011			2012			2011			2012			2011
	Millions
Components of Net Periodic Benefit Cost:
Service Cost	$	25		$	23		$	4		$	3		$	50		$	47		$	8		$	7
Interest Cost		55			58			16			15			111			116			32			30
Expected Return on Plan Assets		(77	)		(82	)		(5	)		(4	)		(153	)		(163	)		(9	)		(8	)
Amortization of Net
Transition Obligation		0			0			0			1			0			0			1			3
Prior Service Cost (Credit)		(4	)		(2	)		(3	)		(3	)		(9	)		(2	)		(7	)		(6	)
Actuarial Loss		42			30			8			4			84			60			16			7
Net Periodic Benefit Cost	$	41		$	27		$	20		$	16		$	83		$	58		$	41		$	33
Effect of Regulatory Asset		0			0			5			5			0			0			10			10
Total Benefit Costs, Including Effect of Regulatory Asset	$	41		$	27		$	25		$	21		$	83		$	58		$	51		$	43

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

	Pension Benefits Three Months Ended June 30,				OPEB Three Months Ended June 30,				Pension Benefits Six Months Ended June 30,				OPEB Six Months Ended June 30,
	2012		2011		2012		2011		2012		2011		2012		2011
	Millions
Power	$	12	$	8	$	4	$	3	$	25	$	18	$	9	$	6
PSE&G		25		15		20		17		49		32		40		35
Other		4		4		1		1		9		8		2		2
Total Benefit Costs	$	41	$	27	$	25	$	21	$	83	$	58	$	51	$	43

During the three months ended March 31, 2012, PSEG contributed its entire planned contribution for the year 2012 of $124 million and $11 million into its pension and postretirement healthcare plans, respectively.