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Financial Information By Business Segments
 12 Months Ended
Dec. 31, 2013
Financial Information By Business Segments
Financial Information by Business Segment
Basis of Organization
PSEG’s operating segments are Power and PSE&G. The operating segments were determined by management in accordance with GAAP—Disclosures about Segments of an Enterprise and Related Information. These segments were determined based on how management measures performance based on segment Net Income, as illustrated in the following table, and how it allocates resources to each business.
On December 31, 2013, Energy Holdings' solar generation facilities and its interest in a generation facility in Hawaii were transferred to Power. As a result, the earnings, assets and liabilities related to this transfer are presented as if the transfer occurred at the beginning of the year and prior years have been retrospectively adjusted to furnish comparative information. See Note 1. Organization, Basis of Presentation and Summary of Significant Accounting Policies for additional information.
Power
Power earns revenues by selling energy, capacity and ancillary services on a wholesale basis under contract to power marketers and to load serving entities and by bidding energy, capacity and ancillary services into the markets for these products. Power also enters into contracts for energy, capacity, FTRs, gas, emission allowances and other energy-related contracts to optimize the value of its portfolio of generating assets and its electric and gas supply obligations.
PSE&G
PSE&G earns revenues from its tariffs, under which it provides electric transmission and electric and gas distribution services to residential, commercial and industrial customers in New Jersey. The rates charged for electric transmission are regulated by the FERC while the rates charged for electric and gas distribution are regulated by the BPU. Revenues are also earned from several other activities such as solar investments, sundry sales, the appliance service business, wholesale transmission services and other miscellaneous services.
Other
This category includes amounts applicable to Energy Holdings and PSEG LI, which are below the quantitative threshold for separate disclosure as reportable segments. Other also includes amounts applicable to PSEG (parent corporation) and Services.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Power
 
PSE&G
 
Other
 
Eliminations (A)
 
Consolidated
Total
 
 
 
 
Millions
 
 
Year Ended December 31, 2013
 
 
 
 
 
 
 
 
 
 
 
 
Operating Revenues
 
$
5,063

 
$
6,655

 
$
52

 
$
(1,802
)
 
$
9,968

 
 
Depreciation and Amortization
 
273

 
872

 
33

 
—

 
1,178

 
 
Operating Income (Loss)
 
1,070

 
1,235

 
(6
)
 
—

 
2,299

 
 
Income from Equity Method Investments
 
16

 
—

 
(5
)
 
—

 
11

 
 
Interest Income
 
1

 
25

 
25

 
(22
)
 
29

 
 
Interest Expense
 
116

 
293

 
15

 
(22
)
 
402

 
 
Income (Loss) before Income Taxes
 
1,063

 
993

 
(1
)
 
—

 
2,055

 
 
Income Tax Expense (Benefit)
 
419

 
381

 
12

 
—

 
812

 
 
Income (Loss) from Continuing Operations
 
644

 
612

 
(13
)
 
—

 
1,243

 
 
Net Income (Loss)
 
644

 
612

 
(13
)
 
—

 
1,243

 
 
Gross Additions to Long-Lived Assets
 
$
609

 
$
2,175

 
$
27

 
—

 
$
2,811

 
 
As of December 31, 2013
 
 
 
 
 
 
 
 
 
 
 
 
Total Assets
 
$
12,002

 
$
19,720

 
$
4,025

 
$
(3,225
)
 
$
32,522

 
 
Investments in Equity Method Subsidiaries
 
$
123

 
$
—

 
$
3

 
$
—

 
$
126

 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Power
 
PSE&G
 
Other
 
Eliminations (A)
 
Consolidated
Total
 
 
 
 
Millions
 
 
Year Ended December 31, 2012
 
 
 
 
 
 
 
 
 
 
 
 
Operating Revenues
 
$
4,873

 
$
6,626

 
$
103

 
$
(1,821
)
 
$
9,781

 
 
Depreciation and Amortization
 
242

 
778

 
34

 
—

 
1,054

 
 
Operating Income (Loss)
 
1,123

 
1,083

 
72

 
—

 
2,278

 
 
Income from Equity Method Investments
 
15

 
—

 
(3
)
 
—

 
12

 
 
Interest Income
 
3

 
20

 
25

 
(21
)
 
27

 
 
Interest Expense
 
132

 
295

 
17

 
(21
)
 
423

 
 
Income (Loss) before Income Taxes
 
1,099

 
835

 
77

 
—

 
2,011

 
 
Income Tax Expense (Benefit)
 
433

 
307

 
(4
)
 
—

 
736

 
 
Income (Loss) from Continuing Operations
 
666

 
528

 
81

 
—

 
1,275

 
 
Net Income (Loss)
 
666

 
528

 
81

 
—

 
1,275

 
 
Gross Additions to Long-Lived Assets
 
$
770

 
$
1,770

 
$
34

 
$
—

 
$
2,574

 
 
As of December 31, 2012
 
 
 
 
 
 
 
 
 
 
 
 
Total Assets
 
$
11,323

 
$
19,223

 
$
4,161

 
$
(2,982
)
 
$
31,725

 
 
Investments in Equity Method Subsidiaries
 
$
125

 
$
—

 
$
9

 
$
—

 
$
134

 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Power
 
PSE&G
 
Other
 
Eliminations (A)
 
Consolidated
Total
 
 
 
 
Millions
 
 
Year Ended December 31, 2011
 
 
 
 
 
 
 
 
 
 
 
 
Operating Revenues
 
$
6,150

 
$
7,326

 
$
(149
)
 
$
(2,248
)
 
$
11,079

 
 
Depreciation and Amortization
 
228

 
719

 
29

 
—

 
976

 
 
Operating Income (Loss)
 
1,773

 
1,151

 
(182
)
 
—

 
2,742

 
 
Income from Equity Method Investments
 
14

 
—

 
(10
)
 
—

 
4

 
 
Interest Income
 
4

 
12

 
20

 
(17
)
 
19

 
 
Interest Expense
 
175

 
310

 
7

 
(17
)
 
475

 
 
Income (Loss) before Income Taxes
 
1,703

 
861

 
(180
)
 
—

 
2,384

 
 
Income Tax Expense (Benefit)
 
690

 
340

 
(53
)
 
—

 
977

 
 
Income (Loss) from Continuing Operations
 
1,013

 
521

 
(127
)
 
—

 
1,407

 
 
Income from Discontinued Operations, net of tax
 
96

 
—

 
—

 
—

 
96

 
 
Net Income (Loss)
 
1,109

 
521

 
(127
)
 
—

 
1,503

 
 
Gross Additions to Long-Lived Assets
 
$
757

 
$
1,302

 
$
24

 
$
—

 
$
2,083

 
 
 
 
 
 
 
 
 
 
 
 
 
 


(A)
Intercompany eliminations, primarily relate to intercompany transactions between Power and PSE&G. No gains or losses are recorded on any intercompany transactions; rather, all intercompany transactions are at cost or, in the case of the BGS and BGSS contracts between Power and PSE&G, at rates prescribed by the BPU. For a further discussion of the intercompany transactions between Power and PSE&G, see Note 24. Related-Party Transactions.
Power [Member]
  
Financial Information By Business Segments
Financial Information by Business Segment
Basis of Organization
PSEG’s operating segments are Power and PSE&G. The operating segments were determined by management in accordance with GAAP—Disclosures about Segments of an Enterprise and Related Information. These segments were determined based on how management measures performance based on segment Net Income, as illustrated in the following table, and how it allocates resources to each business.
On December 31, 2013, Energy Holdings' solar generation facilities and its interest in a generation facility in Hawaii were transferred to Power. As a result, the earnings, assets and liabilities related to this transfer are presented as if the transfer occurred at the beginning of the year and prior years have been retrospectively adjusted to furnish comparative information. See Note 1. Organization, Basis of Presentation and Summary of Significant Accounting Policies for additional information.
Power
Power earns revenues by selling energy, capacity and ancillary services on a wholesale basis under contract to power marketers and to load serving entities and by bidding energy, capacity and ancillary services into the markets for these products. Power also enters into contracts for energy, capacity, FTRs, gas, emission allowances and other energy-related contracts to optimize the value of its portfolio of generating assets and its electric and gas supply obligations.
PSE&G
PSE&G earns revenues from its tariffs, under which it provides electric transmission and electric and gas distribution services to residential, commercial and industrial customers in New Jersey. The rates charged for electric transmission are regulated by the FERC while the rates charged for electric and gas distribution are regulated by the BPU. Revenues are also earned from several other activities such as solar investments, sundry sales, the appliance service business, wholesale transmission services and other miscellaneous services.
Other
This category includes amounts applicable to Energy Holdings and PSEG LI, which are below the quantitative threshold for separate disclosure as reportable segments. Other also includes amounts applicable to PSEG (parent corporation) and Services.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Power
 
PSE&G
 
Other
 
Eliminations (A)
 
Consolidated
Total
 
 
 
 
Millions
 
 
Year Ended December 31, 2013
 
 
 
 
 
 
 
 
 
 
 
 
Operating Revenues
 
$
5,063

 
$
6,655

 
$
52

 
$
(1,802
)
 
$
9,968

 
 
Depreciation and Amortization
 
273

 
872

 
33

 
—

 
1,178

 
 
Operating Income (Loss)
 
1,070

 
1,235

 
(6
)
 
—

 
2,299

 
 
Income from Equity Method Investments
 
16

 
—

 
(5
)
 
—

 
11

 
 
Interest Income
 
1

 
25

 
25

 
(22
)
 
29

 
 
Interest Expense
 
116

 
293

 
15

 
(22
)
 
402

 
 
Income (Loss) before Income Taxes
 
1,063

 
993

 
(1
)
 
—

 
2,055

 
 
Income Tax Expense (Benefit)
 
419

 
381

 
12

 
—

 
812

 
 
Income (Loss) from Continuing Operations
 
644

 
612

 
(13
)
 
—

 
1,243

 
 
Net Income (Loss)
 
644

 
612

 
(13
)
 
—

 
1,243

 
 
Gross Additions to Long-Lived Assets
 
$
609

 
$
2,175

 
$
27

 
—

 
$
2,811

 
 
As of December 31, 2013
 
 
 
 
 
 
 
 
 
 
 
 
Total Assets
 
$
12,002

 
$
19,720

 
$
4,025

 
$
(3,225
)
 
$
32,522

 
 
Investments in Equity Method Subsidiaries
 
$
123

 
$
—

 
$
3

 
$
—

 
$
126

 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Power
 
PSE&G
 
Other
 
Eliminations (A)
 
Consolidated
Total
 
 
 
 
Millions
 
 
Year Ended December 31, 2012
 
 
 
 
 
 
 
 
 
 
 
 
Operating Revenues
 
$
4,873

 
$
6,626

 
$
103

 
$
(1,821
)
 
$
9,781

 
 
Depreciation and Amortization
 
242

 
778

 
34

 
—

 
1,054

 
 
Operating Income (Loss)
 
1,123

 
1,083

 
72

 
—

 
2,278

 
 
Income from Equity Method Investments
 
15

 
—

 
(3
)
 
—

 
12

 
 
Interest Income
 
3

 
20

 
25

 
(21
)
 
27

 
 
Interest Expense
 
132

 
295

 
17

 
(21
)
 
423

 
 
Income (Loss) before Income Taxes
 
1,099

 
835

 
77

 
—

 
2,011

 
 
Income Tax Expense (Benefit)
 
433

 
307

 
(4
)
 
—

 
736

 
 
Income (Loss) from Continuing Operations
 
666

 
528

 
81

 
—

 
1,275

 
 
Net Income (Loss)
 
666

 
528

 
81

 
—

 
1,275

 
 
Gross Additions to Long-Lived Assets
 
$
770

 
$
1,770

 
$
34

 
$
—

 
$
2,574

 
 
As of December 31, 2012
 
 
 
 
 
 
 
 
 
 
 
 
Total Assets
 
$
11,323

 
$
19,223

 
$
4,161

 
$
(2,982
)
 
$
31,725

 
 
Investments in Equity Method Subsidiaries
 
$
125

 
$
—

 
$
9

 
$
—

 
$
134

 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Power
 
PSE&G
 
Other
 
Eliminations (A)
 
Consolidated
Total
 
 
 
 
Millions
 
 
Year Ended December 31, 2011
 
 
 
 
 
 
 
 
 
 
 
 
Operating Revenues
 
$
6,150

 
$
7,326

 
$
(149
)
 
$
(2,248
)
 
$
11,079

 
 
Depreciation and Amortization
 
228

 
719

 
29

 
—

 
976

 
 
Operating Income (Loss)
 
1,773

 
1,151

 
(182
)
 
—

 
2,742

 
 
Income from Equity Method Investments
 
14

 
—

 
(10
)
 
—

 
4

 
 
Interest Income
 
4

 
12

 
20

 
(17
)
 
19

 
 
Interest Expense
 
175

 
310

 
7

 
(17
)
 
475

 
 
Income (Loss) before Income Taxes
 
1,703

 
861

 
(180
)
 
—

 
2,384

 
 
Income Tax Expense (Benefit)
 
690

 
340

 
(53
)
 
—

 
977

 
 
Income (Loss) from Continuing Operations
 
1,013

 
521

 
(127
)
 
—

 
1,407

 
 
Income from Discontinued Operations, net of tax
 
96

 
—

 
—

 
—

 
96

 
 
Net Income (Loss)
 
1,109

 
521

 
(127
)
 
—

 
1,503

 
 
Gross Additions to Long-Lived Assets
 
$
757

 
$
1,302

 
$
24

 
$
—

 
$
2,083

 
 
 
 
 
 
 
 
 
 
 
 
 
 


(A)
Intercompany eliminations, primarily relate to intercompany transactions between Power and PSE&G. No gains or losses are recorded on any intercompany transactions; rather, all intercompany transactions are at cost or, in the case of the BGS and BGSS contracts between Power and PSE&G, at rates prescribed by the BPU. For a further discussion of the intercompany transactions between Power and PSE&G, see Note 24. Related-Party Transactions.
PSE&G [Member]
  
Financial Information By Business Segments
Financial Information by Business Segment
Basis of Organization
PSEG’s operating segments are Power and PSE&G. The operating segments were determined by management in accordance with GAAP—Disclosures about Segments of an Enterprise and Related Information. These segments were determined based on how management measures performance based on segment Net Income, as illustrated in the following table, and how it allocates resources to each business.
On December 31, 2013, Energy Holdings' solar generation facilities and its interest in a generation facility in Hawaii were transferred to Power. As a result, the earnings, assets and liabilities related to this transfer are presented as if the transfer occurred at the beginning of the year and prior years have been retrospectively adjusted to furnish comparative information. See Note 1. Organization, Basis of Presentation and Summary of Significant Accounting Policies for additional information.
Power
Power earns revenues by selling energy, capacity and ancillary services on a wholesale basis under contract to power marketers and to load serving entities and by bidding energy, capacity and ancillary services into the markets for these products. Power also enters into contracts for energy, capacity, FTRs, gas, emission allowances and other energy-related contracts to optimize the value of its portfolio of generating assets and its electric and gas supply obligations.
PSE&G
PSE&G earns revenues from its tariffs, under which it provides electric transmission and electric and gas distribution services to residential, commercial and industrial customers in New Jersey. The rates charged for electric transmission are regulated by the FERC while the rates charged for electric and gas distribution are regulated by the BPU. Revenues are also earned from several other activities such as solar investments, sundry sales, the appliance service business, wholesale transmission services and other miscellaneous services.
Other
This category includes amounts applicable to Energy Holdings and PSEG LI, which are below the quantitative threshold for separate disclosure as reportable segments. Other also includes amounts applicable to PSEG (parent corporation) and Services.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Power
 
PSE&G
 
Other
 
Eliminations (A)
 
Consolidated
Total
 
 
 
 
Millions
 
 
Year Ended December 31, 2013
 
 
 
 
 
 
 
 
 
 
 
 
Operating Revenues
 
$
5,063

 
$
6,655

 
$
52

 
$
(1,802
)
 
$
9,968

 
 
Depreciation and Amortization
 
273

 
872

 
33

 
—

 
1,178

 
 
Operating Income (Loss)
 
1,070

 
1,235

 
(6
)
 
—

 
2,299

 
 
Income from Equity Method Investments
 
16

 
—

 
(5
)
 
—

 
11

 
 
Interest Income
 
1

 
25

 
25

 
(22
)
 
29

 
 
Interest Expense
 
116

 
293

 
15

 
(22
)
 
402

 
 
Income (Loss) before Income Taxes
 
1,063

 
993

 
(1
)
 
—

 
2,055

 
 
Income Tax Expense (Benefit)
 
419

 
381

 
12

 
—

 
812

 
 
Income (Loss) from Continuing Operations
 
644

 
612

 
(13
)
 
—

 
1,243

 
 
Net Income (Loss)
 
644

 
612

 
(13
)
 
—

 
1,243

 
 
Gross Additions to Long-Lived Assets
 
$
609

 
$
2,175

 
$
27

 
—

 
$
2,811

 
 
As of December 31, 2013
 
 
 
 
 
 
 
 
 
 
 
 
Total Assets
 
$
12,002

 
$
19,720

 
$
4,025

 
$
(3,225
)
 
$
32,522

 
 
Investments in Equity Method Subsidiaries
 
$
123

 
$
—

 
$
3

 
$
—

 
$
126

 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Power
 
PSE&G
 
Other
 
Eliminations (A)
 
Consolidated
Total
 
 
 
 
Millions
 
 
Year Ended December 31, 2012
 
 
 
 
 
 
 
 
 
 
 
 
Operating Revenues
 
$
4,873

 
$
6,626

 
$
103

 
$
(1,821
)
 
$
9,781

 
 
Depreciation and Amortization
 
242

 
778

 
34

 
—

 
1,054

 
 
Operating Income (Loss)
 
1,123

 
1,083

 
72

 
—

 
2,278

 
 
Income from Equity Method Investments
 
15

 
—

 
(3
)
 
—

 
12

 
 
Interest Income
 
3

 
20

 
25

 
(21
)
 
27

 
 
Interest Expense
 
132

 
295

 
17

 
(21
)
 
423

 
 
Income (Loss) before Income Taxes
 
1,099

 
835

 
77

 
—

 
2,011

 
 
Income Tax Expense (Benefit)
 
433

 
307

 
(4
)
 
—

 
736

 
 
Income (Loss) from Continuing Operations
 
666

 
528

 
81

 
—

 
1,275

 
 
Net Income (Loss)
 
666

 
528

 
81

 
—

 
1,275

 
 
Gross Additions to Long-Lived Assets
 
$
770

 
$
1,770

 
$
34

 
$
—

 
$
2,574

 
 
As of December 31, 2012
 
 
 
 
 
 
 
 
 
 
 
 
Total Assets
 
$
11,323

 
$
19,223

 
$
4,161

 
$
(2,982
)
 
$
31,725

 
 
Investments in Equity Method Subsidiaries
 
$
125

 
$
—

 
$
9

 
$
—

 
$
134

 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Power
 
PSE&G
 
Other
 
Eliminations (A)
 
Consolidated
Total
 
 
 
 
Millions
 
 
Year Ended December 31, 2011
 
 
 
 
 
 
 
 
 
 
 
 
Operating Revenues
 
$
6,150

 
$
7,326

 
$
(149
)
 
$
(2,248
)
 
$
11,079

 
 
Depreciation and Amortization
 
228

 
719

 
29

 
—

 
976

 
 
Operating Income (Loss)
 
1,773

 
1,151

 
(182
)
 
—

 
2,742

 
 
Income from Equity Method Investments
 
14

 
—

 
(10
)
 
—

 
4

 
 
Interest Income
 
4

 
12

 
20

 
(17
)
 
19

 
 
Interest Expense
 
175

 
310

 
7

 
(17
)
 
475

 
 
Income (Loss) before Income Taxes
 
1,703

 
861

 
(180
)
 
—

 
2,384

 
 
Income Tax Expense (Benefit)
 
690

 
340

 
(53
)
 
—

 
977

 
 
Income (Loss) from Continuing Operations
 
1,013

 
521

 
(127
)
 
—

 
1,407

 
 
Income from Discontinued Operations, net of tax
 
96

 
—

 
—

 
—

 
96

 
 
Net Income (Loss)
 
1,109

 
521

 
(127
)
 
—

 
1,503

 
 
Gross Additions to Long-Lived Assets
 
$
757

 
$
1,302

 
$
24

 
$
—

 
$
2,083

 
 
 
 
 
 
 
 
 
 
 
 
 
 


(A)
Intercompany eliminations, primarily relate to intercompany transactions between Power and PSE&G. No gains or losses are recorded on any intercompany transactions; rather, all intercompany transactions are at cost or, in the case of the BGS and BGSS contracts between Power and PSE&G, at rates prescribed by the BPU. For a further discussion of the intercompany transactions between Power and PSE&G, see Note 24. Related-Party Transactions.