Stock Based Compensation

12 Months Ended

Dec. 31, 2012

Stock Based Compensation

Stock Based Compensation

PSEG's 2004 Long-Term Incentive Plan (2004 LTIP) is a broad-based equity compensation program that provides for grants of various long-term incentive compensation awards, such as stock options, stock appreciation rights, performance units, restricted stock, restricted stock units, cash awards or any combination thereof. The types of long-term incentive awards that have been granted and remain outstanding under the 2004 LTIP are non-qualified options to purchase shares of PSEG's common stock, restricted stock awards, restricted stock unit awards and performance unit awards. The type of equity award that is granted and the details of that award may vary from time to time and is subject to the approval of the Organization and Compensation Committee of PSEG's Board of Directors (OCC), the plan's administrative committee.

The 2004 LTIP currently provides for the issuance of equity awards with respect to approximately 26 million shares of common stock. As of December 31, 2012, there were approximately 17 million shares available for future awards under the 2004 LTIP.

Stock Options

Under the 2004 LTIP, non-qualified options to acquire shares of PSEG common stock may be granted to officers and other key employees selected by the OCC. Option awards are granted with an exercise price equal to the market price of PSEG's common stock at the grant date. The options generally vest over four years of continuous service. Vesting schedules may be accelerated upon the occurrence of certain events, such as a change-in-control (unless substituted with an equity award of equal value), retirement, death or disability. Options are exercisable over a period of time designated by the OCC (but not prior to one year or longer than 10 years from the date of grant) and are subject to such other terms and conditions as the OCC determines. Payment by option holders upon exercise of an option may be made in cash or, with the consent of the OCC, by delivering previously acquired shares of PSEG common stock.

Restricted Stock

Under the 2004 LTIP, PSEG has granted restricted stock awards to officers and other key employees. These shares are subject to risk of forfeiture until vested by continued employment. Restricted stock generally vests annually over three or four years, but is considered outstanding at the time of grant, as the recipients are entitled to dividends and voting rights. Vesting may be accelerated upon certain events, such as change-in-control (unless substituted with an equity award of equal value), retirement, death or disability.

Restricted Stock Units

Under the 2004 LTIP, PSEG has granted restricted stock unit awards to officers and other key employees. These awards, which are bookkeeping entries only, are subject to risk of forfeiture until vested by continued employment. Until vested, the units are credited with dividend equivalents proportionate to the dividends paid on PSEG common stock. Distributions are made in shares of common stock. The restricted stock unit grants for 2012 and 2011 generally vest at the end of three years. Vesting may be accelerated upon certain events such as change-in-control or death. Prior to 2011, restricted stock unit grants generally vested over four years.

Performance Units

Under the 2004 LTIP, performance units were granted to officers and other key employees, which provide for payment in shares of PSEG common stock based on achievement of certain financial goals over a three-year performance period. The payout varies from 0% to 200% of the number of performance units granted depending on PSEG's performance with respect to certain financial targets, including targets related to comparative performance against other companies in a peer group of energy companies. The performance units are credited with dividend equivalents in an amount equal to dividends paid on PSEG common stock up until the shares are distributed. Vesting may be pro-rated for the employee's service during the performance period as a result of certain events, such as change-in-control (unless substituted with an equity award of equal value), retirement, death or disability.

Stock-Based Compensation

All outstanding unvested stock options are being expensed based on their grant date fair values, which were determined using the Black-Scholes option-pricing model. Stock option awards are expensed on a tranche-specific basis over the requisite service period of the award. Ultimately, compensation expense for stock options is recognized for awards that vest.

PSEG recognizes compensation expense for restricted stock and restricted stock units over the vesting period based on the grant date fair market value of the shares, which is equal to the market price of PSEG's common stock on the date of the grant.

PSEG recognizes compensation expense for performance units based on the grant date fair values of the award, which were determined using the Monte Carlo model. The accrual of compensation cost was based on the probable achievement of the performance conditions, which result in a payout from 0% to 200% of the initial grant. The accrual during the year of grant is estimated at 100% of the original grant. The accrual may be adjusted for subsequent changes in the estimated or actual outcome.

	2012		2011		2010
	Millions
Compensation Cost included in Operation and Maintenance Expense	$	25	$	23	$	29
Income Tax Benefit Recognized in Consolidated Statement of Operations	$	10	$	10	$	12

There was less than $1 million of excess tax benefits for 2012. The was $1 million of excess tax benefits included as financing cash flows on the Consolidated Statements of Cash Flow for each of the years ended December 31, 2011 and 2010, respectively.

PSEG recognizes compensation cost of awards issued over the shorter of the original vesting period or the period beginning on the date of grant and ending on the date an individual is eligible for retirement and the award vests.

Stock Options

Changes in stock options for 2012 are summarized as follows:

	Options	Weighted Average Exercise Price		Weighted Average Remaining Years Contractual Term	Aggregate Intrinsic Value
Outstanding as of January 1, 2012	3,272,300	$	32.78
Exercised	326,900	$	20.10
Outstanding as of December 31, 2012	2,945,400	$	34.19	5.3	$	1,509,670
Exercisable at December 31, 2012	2,750,325	$	34.24	5.2	$	1,506,268

The fair value of each option grant is estimated on the date of grant using the Black-Scholes option-pricing model. There were no option grants in 2012, 2011 and 2010.

Activity for options exercised for the years ended December 31, 2012, 2011 and 2010 is shown below:

	2012		2011		2010
	Millions
Total Intrinsic Value of Options Exercised	$	4	$	2	$	1
Cash Received from Options Exercised	$	7	$	6	$	3
Tax Benefit Realized from Options Exercised	$	1	$	1	$	1

Less than one million options vested during each of the years ended December 31, 2012, 2011 and 2010. The total fair value of the stock options vested during the years ended December 31, 2012, 2011 and 2010 was $3 million, $5 million and $7 million, respectively.

As of December 31, 2012, there was approximately $1 million of unrecognized compensation cost related to stock options, which is to be recognized over a weighted average period of 0.5 years.

Restricted Stock

Changes in restricted stock for the year ended December 31, 2012 are summarized as follows:

	Shares	Weighted Average Grant Date Fair Value		Weighted Average Remaining Years Contractual Term	Aggregate Intrinsic Value
Non-vested as of January 1, 2012	70,300	$	32.83
Vested	1,500	$	44.44
Non-vested as of December 31, 2012	68,800	$	32.57	0.2	$	2,105,280

There were no restricted stock awards granted in 2012, 2011 and 2010.

The total intrinsic value of restricted stock vested during the years ended December 31, 2012, 2011 and 2010 was less than $1 million, $1 million and $3 million, respectively.

Restricted Stock Units

Changes in restricted stock units for the year ended December 31, 2012 are summarized as follows:

	Shares	Weighted Average Grant Date Fair Value		Weighted Average Remaining Years Contractual Term	Aggregate Intrinsic Value
Non-vested as of January 1, 2012	648,551	$	31.17
Granted	345,440	$	30.95
Vested	125,838	$	30.87
Canceled/Forfeited	33,626	$	31.24
Non-vested as of December 31, 2012	834,527	$	31.12	1.2	$	25,536,532

The weighted average grant date fair value per share for restricted stock during the years ended December 31, 2012, 2011 and 2010 was $30.95, $32.03 and $31.13 per share, respectively.

The total intrinsic value of restricted stock units vested during the years ended December 31, 2012, 2011 and 2010 was $5 million, $7 million and $6 million, respectively.

As of December 31, 2012, there was approximately $9 million of unrecognized compensation cost related to the restricted stock units, which is expected to be recognized over a weighted average period of 1.0 year. Dividend equivalents units of 40,044 accrued on the restricted stock units during the year.

Performance Share Units

Changes in Performance Share Units for the year ended December 31, 2012 are summarized as follows:

	Shares	Weighted Average Grant Date Fair Value		Weighted Average Remaining Years Contractual Term	Aggregate Intrinsic Value
Non-vested as of January 1, 2012	641,986	$	35.13
Granted	404,460	$	31.25
Vested	258,501	$	36.35
Canceled/Forfeited	37,952	$	33.51
Non-vested as of December 31, 2012	749,993	$	32.70	1.5	$	22,949,786

The weighted average grant date fair value per share for performance share units during the years ended December 31, 2012, 2011 and 2010 was $31.25, $35.33 and $34.29 per share, respectively.

The total intrinsic value of performance share units vested during the year ended December 31, 2012, 2011 and 2010 was $4 million, $9 million and $15 million, respectively.

As of December 31, 2012, there was approximately $13 million of unrecognized compensation cost related to the performance share units, which is expected to be recognized over a weighted average period of 1.0 year. Dividend equivalents units of 49,170 accrued on the performance share units during the year.

Outside Directors

Under the Directors Equity Plan, annually, on the first business day of May, each non-employee member of the Board of Directors is awarded stock units based on amount of annual compensation to be paid at the closing price of PSEG common stock on that date. Dividend equivalents are credited quarterly and distributions will commence upon the director leaving the Board.

The fair value of these awards is recorded as compensation expense in the Consolidated Statements of Operations. Compensation expense for the plan for each of the years ended December 31, 2012, 2011 and 2010 was approximately $1 million.

Employee Stock Purchase Plan (ESPP)

PSEG maintains an ESPP for all eligible employees of PSEG and its subsidiaries. Under the ESPP, shares of PSEG common stock may be purchased at 95% of the fair market value through payroll deductions. In any year, employees may purchase shares having a value not exceeding 10% of their base pay. During the years ended December 31, 2012, 2011 and 2010, employees purchased 191,572, 183,338 and 178,684 shares at an average price of $31.32, $30.69 and $30.32 per share, respectively. As of December 31, 2012, 3.6 million shares were available for future issuance under this plan.

Power [Member]

Stock Based Compensation

Stock Based Compensation

PSEG's 2004 Long-Term Incentive Plan (2004 LTIP) is a broad-based equity compensation program that provides for grants of various long-term incentive compensation awards, such as stock options, stock appreciation rights, performance units, restricted stock, restricted stock units, cash awards or any combination thereof. The types of long-term incentive awards that have been granted and remain outstanding under the 2004 LTIP are non-qualified options to purchase shares of PSEG's common stock, restricted stock awards, restricted stock unit awards and performance unit awards. The type of equity award that is granted and the details of that award may vary from time to time and is subject to the approval of the Organization and Compensation Committee of PSEG's Board of Directors (OCC), the plan's administrative committee.

The 2004 LTIP currently provides for the issuance of equity awards with respect to approximately 26 million shares of common stock. As of December 31, 2012, there were approximately 17 million shares available for future awards under the 2004 LTIP.

Stock Options

Under the 2004 LTIP, non-qualified options to acquire shares of PSEG common stock may be granted to officers and other key employees selected by the OCC. Option awards are granted with an exercise price equal to the market price of PSEG's common stock at the grant date. The options generally vest over four years of continuous service. Vesting schedules may be accelerated upon the occurrence of certain events, such as a change-in-control (unless substituted with an equity award of equal value), retirement, death or disability. Options are exercisable over a period of time designated by the OCC (but not prior to one year or longer than 10 years from the date of grant) and are subject to such other terms and conditions as the OCC determines. Payment by option holders upon exercise of an option may be made in cash or, with the consent of the OCC, by delivering previously acquired shares of PSEG common stock.

Restricted Stock

Under the 2004 LTIP, PSEG has granted restricted stock awards to officers and other key employees. These shares are subject to risk of forfeiture until vested by continued employment. Restricted stock generally vests annually over three or four years, but is considered outstanding at the time of grant, as the recipients are entitled to dividends and voting rights. Vesting may be accelerated upon certain events, such as change-in-control (unless substituted with an equity award of equal value), retirement, death or disability.

Restricted Stock Units

Under the 2004 LTIP, PSEG has granted restricted stock unit awards to officers and other key employees. These awards, which are bookkeeping entries only, are subject to risk of forfeiture until vested by continued employment. Until vested, the units are credited with dividend equivalents proportionate to the dividends paid on PSEG common stock. Distributions are made in shares of common stock. The restricted stock unit grants for 2012 and 2011 generally vest at the end of three years. Vesting may be accelerated upon certain events such as change-in-control or death. Prior to 2011, restricted stock unit grants generally vested over four years.

Performance Units

Under the 2004 LTIP, performance units were granted to officers and other key employees, which provide for payment in shares of PSEG common stock based on achievement of certain financial goals over a three-year performance period. The payout varies from 0% to 200% of the number of performance units granted depending on PSEG's performance with respect to certain financial targets, including targets related to comparative performance against other companies in a peer group of energy companies. The performance units are credited with dividend equivalents in an amount equal to dividends paid on PSEG common stock up until the shares are distributed. Vesting may be pro-rated for the employee's service during the performance period as a result of certain events, such as change-in-control (unless substituted with an equity award of equal value), retirement, death or disability.

Stock-Based Compensation

All outstanding unvested stock options are being expensed based on their grant date fair values, which were determined using the Black-Scholes option-pricing model. Stock option awards are expensed on a tranche-specific basis over the requisite service period of the award. Ultimately, compensation expense for stock options is recognized for awards that vest.

PSEG recognizes compensation expense for restricted stock and restricted stock units over the vesting period based on the grant date fair market value of the shares, which is equal to the market price of PSEG's common stock on the date of the grant.

PSEG recognizes compensation expense for performance units based on the grant date fair values of the award, which were determined using the Monte Carlo model. The accrual of compensation cost was based on the probable achievement of the performance conditions, which result in a payout from 0% to 200% of the initial grant. The accrual during the year of grant is estimated at 100% of the original grant. The accrual may be adjusted for subsequent changes in the estimated or actual outcome.

	2012		2011		2010
	Millions
Compensation Cost included in Operation and Maintenance Expense	$	25	$	23	$	29
Income Tax Benefit Recognized in Consolidated Statement of Operations	$	10	$	10	$	12

There was less than $1 million of excess tax benefits for 2012. The was $1 million of excess tax benefits included as financing cash flows on the Consolidated Statements of Cash Flow for each of the years ended December 31, 2011 and 2010, respectively.

PSEG recognizes compensation cost of awards issued over the shorter of the original vesting period or the period beginning on the date of grant and ending on the date an individual is eligible for retirement and the award vests.

Stock Options

Changes in stock options for 2012 are summarized as follows:

	Options	Weighted Average Exercise Price		Weighted Average Remaining Years Contractual Term	Aggregate Intrinsic Value
Outstanding as of January 1, 2012	3,272,300	$	32.78
Exercised	326,900	$	20.10
Outstanding as of December 31, 2012	2,945,400	$	34.19	5.3	$	1,509,670
Exercisable at December 31, 2012	2,750,325	$	34.24	5.2	$	1,506,268

The fair value of each option grant is estimated on the date of grant using the Black-Scholes option-pricing model. There were no option grants in 2012, 2011 and 2010.

Activity for options exercised for the years ended December 31, 2012, 2011 and 2010 is shown below:

	2012		2011		2010
	Millions
Total Intrinsic Value of Options Exercised	$	4	$	2	$	1
Cash Received from Options Exercised	$	7	$	6	$	3
Tax Benefit Realized from Options Exercised	$	1	$	1	$	1

Less than one million options vested during each of the years ended December 31, 2012, 2011 and 2010. The total fair value of the stock options vested during the years ended December 31, 2012, 2011 and 2010 was $3 million, $5 million and $7 million, respectively.

As of December 31, 2012, there was approximately $1 million of unrecognized compensation cost related to stock options, which is to be recognized over a weighted average period of 0.5 years.

Restricted Stock

Changes in restricted stock for the year ended December 31, 2012 are summarized as follows:

	Shares	Weighted Average Grant Date Fair Value		Weighted Average Remaining Years Contractual Term	Aggregate Intrinsic Value
Non-vested as of January 1, 2012	70,300	$	32.83
Vested	1,500	$	44.44
Non-vested as of December 31, 2012	68,800	$	32.57	0.2	$	2,105,280

There were no restricted stock awards granted in 2012, 2011 and 2010.

The total intrinsic value of restricted stock vested during the years ended December 31, 2012, 2011 and 2010 was less than $1 million, $1 million and $3 million, respectively.

Restricted Stock Units

Changes in restricted stock units for the year ended December 31, 2012 are summarized as follows:

	Shares	Weighted Average Grant Date Fair Value		Weighted Average Remaining Years Contractual Term	Aggregate Intrinsic Value
Non-vested as of January 1, 2012	648,551	$	31.17
Granted	345,440	$	30.95
Vested	125,838	$	30.87
Canceled/Forfeited	33,626	$	31.24
Non-vested as of December 31, 2012	834,527	$	31.12	1.2	$	25,536,532

The weighted average grant date fair value per share for restricted stock during the years ended December 31, 2012, 2011 and 2010 was $30.95, $32.03 and $31.13 per share, respectively.

The total intrinsic value of restricted stock units vested during the years ended December 31, 2012, 2011 and 2010 was $5 million, $7 million and $6 million, respectively.

As of December 31, 2012, there was approximately $9 million of unrecognized compensation cost related to the restricted stock units, which is expected to be recognized over a weighted average period of 1.0 year. Dividend equivalents units of 40,044 accrued on the restricted stock units during the year.

Performance Share Units

Changes in Performance Share Units for the year ended December 31, 2012 are summarized as follows:

	Shares	Weighted Average Grant Date Fair Value		Weighted Average Remaining Years Contractual Term	Aggregate Intrinsic Value
Non-vested as of January 1, 2012	641,986	$	35.13
Granted	404,460	$	31.25
Vested	258,501	$	36.35
Canceled/Forfeited	37,952	$	33.51
Non-vested as of December 31, 2012	749,993	$	32.70	1.5	$	22,949,786

The weighted average grant date fair value per share for performance share units during the years ended December 31, 2012, 2011 and 2010 was $31.25, $35.33 and $34.29 per share, respectively.

The total intrinsic value of performance share units vested during the year ended December 31, 2012, 2011 and 2010 was $4 million, $9 million and $15 million, respectively.

As of December 31, 2012, there was approximately $13 million of unrecognized compensation cost related to the performance share units, which is expected to be recognized over a weighted average period of 1.0 year. Dividend equivalents units of 49,170 accrued on the performance share units during the year.

Outside Directors

Under the Directors Equity Plan, annually, on the first business day of May, each non-employee member of the Board of Directors is awarded stock units based on amount of annual compensation to be paid at the closing price of PSEG common stock on that date. Dividend equivalents are credited quarterly and distributions will commence upon the director leaving the Board.

The fair value of these awards is recorded as compensation expense in the Consolidated Statements of Operations. Compensation expense for the plan for each of the years ended December 31, 2012, 2011 and 2010 was approximately $1 million.

Employee Stock Purchase Plan (ESPP)

PSEG maintains an ESPP for all eligible employees of PSEG and its subsidiaries. Under the ESPP, shares of PSEG common stock may be purchased at 95% of the fair market value through payroll deductions. In any year, employees may purchase shares having a value not exceeding 10% of their base pay. During the years ended December 31, 2012, 2011 and 2010, employees purchased 191,572, 183,338 and 178,684 shares at an average price of $31.32, $30.69 and $30.32 per share, respectively. As of December 31, 2012, 3.6 million shares were available for future issuance under this plan.

PSE&G [Member]

Stock Based Compensation

Stock Based Compensation

PSEG's 2004 Long-Term Incentive Plan (2004 LTIP) is a broad-based equity compensation program that provides for grants of various long-term incentive compensation awards, such as stock options, stock appreciation rights, performance units, restricted stock, restricted stock units, cash awards or any combination thereof. The types of long-term incentive awards that have been granted and remain outstanding under the 2004 LTIP are non-qualified options to purchase shares of PSEG's common stock, restricted stock awards, restricted stock unit awards and performance unit awards. The type of equity award that is granted and the details of that award may vary from time to time and is subject to the approval of the Organization and Compensation Committee of PSEG's Board of Directors (OCC), the plan's administrative committee.

The 2004 LTIP currently provides for the issuance of equity awards with respect to approximately 26 million shares of common stock. As of December 31, 2012, there were approximately 17 million shares available for future awards under the 2004 LTIP.

Stock Options

Under the 2004 LTIP, non-qualified options to acquire shares of PSEG common stock may be granted to officers and other key employees selected by the OCC. Option awards are granted with an exercise price equal to the market price of PSEG's common stock at the grant date. The options generally vest over four years of continuous service. Vesting schedules may be accelerated upon the occurrence of certain events, such as a change-in-control (unless substituted with an equity award of equal value), retirement, death or disability. Options are exercisable over a period of time designated by the OCC (but not prior to one year or longer than 10 years from the date of grant) and are subject to such other terms and conditions as the OCC determines. Payment by option holders upon exercise of an option may be made in cash or, with the consent of the OCC, by delivering previously acquired shares of PSEG common stock.

Restricted Stock

Under the 2004 LTIP, PSEG has granted restricted stock awards to officers and other key employees. These shares are subject to risk of forfeiture until vested by continued employment. Restricted stock generally vests annually over three or four years, but is considered outstanding at the time of grant, as the recipients are entitled to dividends and voting rights. Vesting may be accelerated upon certain events, such as change-in-control (unless substituted with an equity award of equal value), retirement, death or disability.

Restricted Stock Units

Under the 2004 LTIP, PSEG has granted restricted stock unit awards to officers and other key employees. These awards, which are bookkeeping entries only, are subject to risk of forfeiture until vested by continued employment. Until vested, the units are credited with dividend equivalents proportionate to the dividends paid on PSEG common stock. Distributions are made in shares of common stock. The restricted stock unit grants for 2012 and 2011 generally vest at the end of three years. Vesting may be accelerated upon certain events such as change-in-control or death. Prior to 2011, restricted stock unit grants generally vested over four years.

Performance Units

Under the 2004 LTIP, performance units were granted to officers and other key employees, which provide for payment in shares of PSEG common stock based on achievement of certain financial goals over a three-year performance period. The payout varies from 0% to 200% of the number of performance units granted depending on PSEG's performance with respect to certain financial targets, including targets related to comparative performance against other companies in a peer group of energy companies. The performance units are credited with dividend equivalents in an amount equal to dividends paid on PSEG common stock up until the shares are distributed. Vesting may be pro-rated for the employee's service during the performance period as a result of certain events, such as change-in-control (unless substituted with an equity award of equal value), retirement, death or disability.

Stock-Based Compensation

All outstanding unvested stock options are being expensed based on their grant date fair values, which were determined using the Black-Scholes option-pricing model. Stock option awards are expensed on a tranche-specific basis over the requisite service period of the award. Ultimately, compensation expense for stock options is recognized for awards that vest.

PSEG recognizes compensation expense for restricted stock and restricted stock units over the vesting period based on the grant date fair market value of the shares, which is equal to the market price of PSEG's common stock on the date of the grant.

PSEG recognizes compensation expense for performance units based on the grant date fair values of the award, which were determined using the Monte Carlo model. The accrual of compensation cost was based on the probable achievement of the performance conditions, which result in a payout from 0% to 200% of the initial grant. The accrual during the year of grant is estimated at 100% of the original grant. The accrual may be adjusted for subsequent changes in the estimated or actual outcome.

	2012		2011		2010
	Millions
Compensation Cost included in Operation and Maintenance Expense	$	25	$	23	$	29
Income Tax Benefit Recognized in Consolidated Statement of Operations	$	10	$	10	$	12

There was less than $1 million of excess tax benefits for 2012. The was $1 million of excess tax benefits included as financing cash flows on the Consolidated Statements of Cash Flow for each of the years ended December 31, 2011 and 2010, respectively.

PSEG recognizes compensation cost of awards issued over the shorter of the original vesting period or the period beginning on the date of grant and ending on the date an individual is eligible for retirement and the award vests.

Stock Options

Changes in stock options for 2012 are summarized as follows:

	Options	Weighted Average Exercise Price		Weighted Average Remaining Years Contractual Term	Aggregate Intrinsic Value
Outstanding as of January 1, 2012	3,272,300	$	32.78
Exercised	326,900	$	20.10
Outstanding as of December 31, 2012	2,945,400	$	34.19	5.3	$	1,509,670
Exercisable at December 31, 2012	2,750,325	$	34.24	5.2	$	1,506,268

The fair value of each option grant is estimated on the date of grant using the Black-Scholes option-pricing model. There were no option grants in 2012, 2011 and 2010.

Activity for options exercised for the years ended December 31, 2012, 2011 and 2010 is shown below:

	2012		2011		2010
	Millions
Total Intrinsic Value of Options Exercised	$	4	$	2	$	1
Cash Received from Options Exercised	$	7	$	6	$	3
Tax Benefit Realized from Options Exercised	$	1	$	1	$	1

Less than one million options vested during each of the years ended December 31, 2012, 2011 and 2010. The total fair value of the stock options vested during the years ended December 31, 2012, 2011 and 2010 was $3 million, $5 million and $7 million, respectively.

As of December 31, 2012, there was approximately $1 million of unrecognized compensation cost related to stock options, which is to be recognized over a weighted average period of 0.5 years.

Restricted Stock

Changes in restricted stock for the year ended December 31, 2012 are summarized as follows:

	Shares	Weighted Average Grant Date Fair Value		Weighted Average Remaining Years Contractual Term	Aggregate Intrinsic Value
Non-vested as of January 1, 2012	70,300	$	32.83
Vested	1,500	$	44.44
Non-vested as of December 31, 2012	68,800	$	32.57	0.2	$	2,105,280

There were no restricted stock awards granted in 2012, 2011 and 2010.

The total intrinsic value of restricted stock vested during the years ended December 31, 2012, 2011 and 2010 was less than $1 million, $1 million and $3 million, respectively.

Restricted Stock Units

Changes in restricted stock units for the year ended December 31, 2012 are summarized as follows:

	Shares	Weighted Average Grant Date Fair Value		Weighted Average Remaining Years Contractual Term	Aggregate Intrinsic Value
Non-vested as of January 1, 2012	648,551	$	31.17
Granted	345,440	$	30.95
Vested	125,838	$	30.87
Canceled/Forfeited	33,626	$	31.24
Non-vested as of December 31, 2012	834,527	$	31.12	1.2	$	25,536,532

The weighted average grant date fair value per share for restricted stock during the years ended December 31, 2012, 2011 and 2010 was $30.95, $32.03 and $31.13 per share, respectively.

The total intrinsic value of restricted stock units vested during the years ended December 31, 2012, 2011 and 2010 was $5 million, $7 million and $6 million, respectively.

As of December 31, 2012, there was approximately $9 million of unrecognized compensation cost related to the restricted stock units, which is expected to be recognized over a weighted average period of 1.0 year. Dividend equivalents units of 40,044 accrued on the restricted stock units during the year.

Performance Share Units

Changes in Performance Share Units for the year ended December 31, 2012 are summarized as follows:

	Shares	Weighted Average Grant Date Fair Value		Weighted Average Remaining Years Contractual Term	Aggregate Intrinsic Value
Non-vested as of January 1, 2012	641,986	$	35.13
Granted	404,460	$	31.25
Vested	258,501	$	36.35
Canceled/Forfeited	37,952	$	33.51
Non-vested as of December 31, 2012	749,993	$	32.70	1.5	$	22,949,786

The weighted average grant date fair value per share for performance share units during the years ended December 31, 2012, 2011 and 2010 was $31.25, $35.33 and $34.29 per share, respectively.

The total intrinsic value of performance share units vested during the year ended December 31, 2012, 2011 and 2010 was $4 million, $9 million and $15 million, respectively.

As of December 31, 2012, there was approximately $13 million of unrecognized compensation cost related to the performance share units, which is expected to be recognized over a weighted average period of 1.0 year. Dividend equivalents units of 49,170 accrued on the performance share units during the year.

Outside Directors

Under the Directors Equity Plan, annually, on the first business day of May, each non-employee member of the Board of Directors is awarded stock units based on amount of annual compensation to be paid at the closing price of PSEG common stock on that date. Dividend equivalents are credited quarterly and distributions will commence upon the director leaving the Board.

The fair value of these awards is recorded as compensation expense in the Consolidated Statements of Operations. Compensation expense for the plan for each of the years ended December 31, 2012, 2011 and 2010 was approximately $1 million.

Employee Stock Purchase Plan (ESPP)

PSEG maintains an ESPP for all eligible employees of PSEG and its subsidiaries. Under the ESPP, shares of PSEG common stock may be purchased at 95% of the fair market value through payroll deductions. In any year, employees may purchase shares having a value not exceeding 10% of their base pay. During the years ended December 31, 2012, 2011 and 2010, employees purchased 191,572, 183,338 and 178,684 shares at an average price of $31.32, $30.69 and $30.32 per share, respectively. As of December 31, 2012, 3.6 million shares were available for future issuance under this plan.