Guarantees of Debt

6 Months Ended

Jun. 30, 2012

Guarantees of Debt

Note 18. Guarantees of Debt

Each series of Power’s Senior Notes, Pollution Control Notes and its syndicated revolving credit facilities are fully and unconditionally and jointly and severally guaranteed by its subsidiaries, PSEG Fossil LLC (Fossil), PSEG Nuclear LLC (Nuclear) and ER&T. The following table presents condensed financial information for the guarantor subsidiaries, as well as Power’s non-guarantor subsidiaries.

	Power			Guarantor Subsidiaries			Other Subsidiaries			Consolidating Adjustments			Consolidated
	Millions
Three Months Ended June 30, 2012
Operating Revenues	$	0		$	1,329		$	31		$	(375	)	$	985
Operating Expenses		2			1,135			28			(376	)		789
Operating Income (Loss)		(2	)		194			3			1			196
Equity Earnings (Losses) of Subsidiaries		116			(1	)		0			(115	)		0
Other Income		11			39			0			(13	)		37
Other Deductions		0			(17	)		0			0			(17	)
Other-Than-Temporary Impairments		0			(7	)		0			0			(7	)
Interest Expense		(31	)		(10	)		(4	)		13			(32	)
Income Tax Benefit (Expense)		10			(82	)		0			(1	)		(73	)
Net Income (Loss)	$	104		$	116		$	(1	)	$	(115	)	$	104
Comprehensive Income (Loss)	$	86		$	91		$	(1	)	$	(90	)	$	86
Three Months Ended June 30, 2011
Operating Revenues	$	0		$	1,619		$	27		$	(361	)	$	1,285
Operating Expenses		(1	)		1,263			28			(360	)		930
Operating Income (Loss)		1			356			(1	)		(1	)		355
Equity Earnings (Losses) of Subsidiaries		220			0			0			(220	)		0
Other Income		9			50			0			(10	)		49
Other Deductions		0			(14	)		0			0			(14	)
Other-Than-Temporary Impairments		0			(1	)		0			0			(1	)
Interest Expense		(36	)		(11	)		(4	)		10			(41	)
Income Tax Benefit (Expense)		14			(160	)		2			1			(143	)
Income (Loss) on Discontinued Operations, net of tax		0			0			3			0			3
Net Income (Loss)	$	208		$	220		$	0		$	(220	)	$	208
Comprehensive Income (Loss)	$	209		$	185		$	0		$	(185	)	$	209

	Power			Guarantor Subsidiaries			Other Subsidiaries			Consolidating Adjustments			Consolidated
	Millions
Six Months Ended June 30, 2012
Operating Revenues	$	0		$	3,202		$	57		$	(713	)	$	2,546
Operating Expenses		0			2,568			55			(714	)		1,909
Operating Income (Loss)		0			634			2			1			637
Equity Earnings (Losses) of Subsidiaries		376			(4	)		0			(372	)		0
Other Income		24			70			0			(27	)		67
Other Deductions		(7	)		(25	)		0			0			(32	)
Other-Than-Temporary Impairments		0			(12	)		0			0			(12	)
Interest Expense		(60	)		(20	)		(8	)		26			(62	)
Income Tax Benefit (Expense)		24			(267	)		2			0			(241	)
Net Income (Loss)	$	357		$	376		$	(4	)	$	(372	)	$	357
Comprehensive Income (Loss)	$	383		$	388		$	(4	)	$	(384	)	$	383
Six Months Ended June 30, 2012
Net Cash Provided By (Used In) Operating Activities	$	301		$	902		$	3		$	(354	)	$	852
Net Cash Provided By (Used In) Investing Activities	$	365		$	(601	)	$	(23	)	$	70		$	(189	)
Net Cash Provided By (Used In) Financing Activities	$	(666	)	$	(310	)	$	19		$	284		$	(673	)
Six Months Ended June 30, 2011
Operating Revenues	$	0		$	3,897		$	77		$	(722	)	$	3,252
Operating Expenses		1			3,037			80			(722	)		2,396
Operating Income (Loss)		(1	)		860			(3	)		0			856
Equity Earnings (Losses) of Subsidiaries		602			59			0			(661	)		0
Other Income		19			121			0			(21	)		119
Other Deductions		(3	)		(23	)		0			0			(26	)
Other-Than-Temporary Impairments		(1	)		(2	)		0			0			(3	)
Interest Expense		(82	)		(21	)		(10	)		21			(92	)
Income Tax Benefit (Expense)		35			(392	)		5			0			(352	)
Income (Loss) on Discontinued Operations, net of tax		0			0			67			0			67
Net Income (Loss)	$	569		$	602		$	59		$	(661	)	$	569
Comprehensive Income (Loss)	$	537		$	528		$	59		$	(587	)	$	537
Six Months Ended June 30, 2011
Net Cash Provided By (Used In) Operating Activities	$	367		$	1,400		$	(148	)	$	(473	)	$	1,146
Net Cash Provided By (Used In) Investing Activities	$	589		$	(674	)	$	317		$	(413	)	$	(181	)
Net Cash Provided By (Used In) Financing Activities	$	(956	)	$	(725	)	$	(168	)	$	887		$	(962	)

	Power		Guarantor Subsidiaries		Other Subsidiaries		Consolidating Adjustments			Consolidated
	Millions
As of June 30, 2012
Current Assets	$	4,071	$	7,718	$	906	$	(10,401	)	$	2,294
Property, Plant and Equipment, net		71		5,765		957		0			6,793
Investment in Subsidiaries		4,124		740		0		(4,864	)		0
Noncurrent Assets		189		1,534		62		(123	)		1,662
Total Assets	$	8,455	$	15,757	$	1,925	$	(15,388	)	$	10,749
Current Liabilities	$	385	$	9,896	$	1,011	$	(10,402	)	$	890
Noncurrent Liabilities		458		1,737		173		(122	)		2,246
Long-Term Debt		2,386		0		0		0			2,386
Member’s Equity		5,226		4,124		741		(4,864	)		5,227
Total Liabilities and Member’s Equity	$	8,455	$	15,757	$	1,925	$	(15,388	)	$	10,749
As of December 31, 2011
Current Assets	$	4,311	$	7,248	$	951	$	(9,823	)	$	2,687
Property, Plant and Equipment, net		66		5,715		950		0			6,731
Investment in Subsidiaries		4,185		804		0		(4,989	)		0
Noncurrent Assets		179		1,557		51		(118	)		1,669
Total Assets	$	8,741	$	15,324	$	1,952	$	(14,930	)	$	11,087
Current Liabilities	$	172	$	9,549	$	1,003	$	(9,822	)	$	902
Noncurrent Liabilities		440		1,589		145		(118	)		2,056
Long-Term Debt		2,685		0		0		0			2,685
Member’s Equity		5,444		4,186		804		(4,990	)		5,444
Total Liabilities and Member’s Equity	$	8,741	$	15,324	$	1,952	$	(14,930	)	$	11,087

Power [Member]

Guarantees of Debt

Note 18. Guarantees of Debt

Each series of Power’s Senior Notes, Pollution Control Notes and its syndicated revolving credit facilities are fully and unconditionally and jointly and severally guaranteed by its subsidiaries, PSEG Fossil LLC (Fossil), PSEG Nuclear LLC (Nuclear) and ER&T. The following table presents condensed financial information for the guarantor subsidiaries, as well as Power’s non-guarantor subsidiaries.

	Power			Guarantor Subsidiaries			Other Subsidiaries			Consolidating Adjustments			Consolidated
	Millions
Three Months Ended June 30, 2012
Operating Revenues	$	0		$	1,329		$	31		$	(375	)	$	985
Operating Expenses		2			1,135			28			(376	)		789
Operating Income (Loss)		(2	)		194			3			1			196
Equity Earnings (Losses) of Subsidiaries		116			(1	)		0			(115	)		0
Other Income		11			39			0			(13	)		37
Other Deductions		0			(17	)		0			0			(17	)
Other-Than-Temporary Impairments		0			(7	)		0			0			(7	)
Interest Expense		(31	)		(10	)		(4	)		13			(32	)
Income Tax Benefit (Expense)		10			(82	)		0			(1	)		(73	)
Net Income (Loss)	$	104		$	116		$	(1	)	$	(115	)	$	104
Comprehensive Income (Loss)	$	86		$	91		$	(1	)	$	(90	)	$	86
Three Months Ended June 30, 2011
Operating Revenues	$	0		$	1,619		$	27		$	(361	)	$	1,285
Operating Expenses		(1	)		1,263			28			(360	)		930
Operating Income (Loss)		1			356			(1	)		(1	)		355
Equity Earnings (Losses) of Subsidiaries		220			0			0			(220	)		0
Other Income		9			50			0			(10	)		49
Other Deductions		0			(14	)		0			0			(14	)
Other-Than-Temporary Impairments		0			(1	)		0			0			(1	)
Interest Expense		(36	)		(11	)		(4	)		10			(41	)
Income Tax Benefit (Expense)		14			(160	)		2			1			(143	)
Income (Loss) on Discontinued Operations, net of tax		0			0			3			0			3
Net Income (Loss)	$	208		$	220		$	0		$	(220	)	$	208
Comprehensive Income (Loss)	$	209		$	185		$	0		$	(185	)	$	209

	Power			Guarantor Subsidiaries			Other Subsidiaries			Consolidating Adjustments			Consolidated
	Millions
Six Months Ended June 30, 2012
Operating Revenues	$	0		$	3,202		$	57		$	(713	)	$	2,546
Operating Expenses		0			2,568			55			(714	)		1,909
Operating Income (Loss)		0			634			2			1			637
Equity Earnings (Losses) of Subsidiaries		376			(4	)		0			(372	)		0
Other Income		24			70			0			(27	)		67
Other Deductions		(7	)		(25	)		0			0			(32	)
Other-Than-Temporary Impairments		0			(12	)		0			0			(12	)
Interest Expense		(60	)		(20	)		(8	)		26			(62	)
Income Tax Benefit (Expense)		24			(267	)		2			0			(241	)
Net Income (Loss)	$	357		$	376		$	(4	)	$	(372	)	$	357
Comprehensive Income (Loss)	$	383		$	388		$	(4	)	$	(384	)	$	383
Six Months Ended June 30, 2012
Net Cash Provided By (Used In) Operating Activities	$	301		$	902		$	3		$	(354	)	$	852
Net Cash Provided By (Used In) Investing Activities	$	365		$	(601	)	$	(23	)	$	70		$	(189	)
Net Cash Provided By (Used In) Financing Activities	$	(666	)	$	(310	)	$	19		$	284		$	(673	)
Six Months Ended June 30, 2011
Operating Revenues	$	0		$	3,897		$	77		$	(722	)	$	3,252
Operating Expenses		1			3,037			80			(722	)		2,396
Operating Income (Loss)		(1	)		860			(3	)		0			856
Equity Earnings (Losses) of Subsidiaries		602			59			0			(661	)		0
Other Income		19			121			0			(21	)		119
Other Deductions		(3	)		(23	)		0			0			(26	)
Other-Than-Temporary Impairments		(1	)		(2	)		0			0			(3	)
Interest Expense		(82	)		(21	)		(10	)		21			(92	)
Income Tax Benefit (Expense)		35			(392	)		5			0			(352	)
Income (Loss) on Discontinued Operations, net of tax		0			0			67			0			67
Net Income (Loss)	$	569		$	602		$	59		$	(661	)	$	569
Comprehensive Income (Loss)	$	537		$	528		$	59		$	(587	)	$	537
Six Months Ended June 30, 2011
Net Cash Provided By (Used In) Operating Activities	$	367		$	1,400		$	(148	)	$	(473	)	$	1,146
Net Cash Provided By (Used In) Investing Activities	$	589		$	(674	)	$	317		$	(413	)	$	(181	)
Net Cash Provided By (Used In) Financing Activities	$	(956	)	$	(725	)	$	(168	)	$	887		$	(962	)

	Power		Guarantor Subsidiaries		Other Subsidiaries		Consolidating Adjustments			Consolidated
	Millions
As of June 30, 2012
Current Assets	$	4,071	$	7,718	$	906	$	(10,401	)	$	2,294
Property, Plant and Equipment, net		71		5,765		957		0			6,793
Investment in Subsidiaries		4,124		740		0		(4,864	)		0
Noncurrent Assets		189		1,534		62		(123	)		1,662
Total Assets	$	8,455	$	15,757	$	1,925	$	(15,388	)	$	10,749
Current Liabilities	$	385	$	9,896	$	1,011	$	(10,402	)	$	890
Noncurrent Liabilities		458		1,737		173		(122	)		2,246
Long-Term Debt		2,386		0		0		0			2,386
Member’s Equity		5,226		4,124		741		(4,864	)		5,227
Total Liabilities and Member’s Equity	$	8,455	$	15,757	$	1,925	$	(15,388	)	$	10,749
As of December 31, 2011
Current Assets	$	4,311	$	7,248	$	951	$	(9,823	)	$	2,687
Property, Plant and Equipment, net		66		5,715		950		0			6,731
Investment in Subsidiaries		4,185		804		0		(4,989	)		0
Noncurrent Assets		179		1,557		51		(118	)		1,669
Total Assets	$	8,741	$	15,324	$	1,952	$	(14,930	)	$	11,087
Current Liabilities	$	172	$	9,549	$	1,003	$	(9,822	)	$	902
Noncurrent Liabilities		440		1,589		145		(118	)		2,056
Long-Term Debt		2,685		0		0		0			2,685
Member’s Equity		5,444		4,186		804		(4,990	)		5,444
Total Liabilities and Member’s Equity	$	8,741	$	15,324	$	1,952	$	(14,930	)	$	11,087