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Related-Party Transactions
 6 Months Ended
Jun. 30, 2014
Related-Party Transactions
Related-Party Transactions
The following discussion relates to intercompany transactions, which are eliminated during the PSEG consolidation process in accordance with GAAP.
Power
The financial statements for Power include transactions with related parties presented as follows:
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
Six Months Ended
 
 
 
June 30,
 
June 30,
 
 
Related-Party Transactions
2014
 
2013
 
2014
 
2013
 
 
 
Millions
 
 
Revenue from Affiliates:
 
 
 
 
 
 
 
 
 
Billings to PSE&G through BGS and BGSS Contracts (A)
$
297

 
$
320

 
$
1,028

 
$
991

 
 
Expense Billings from Affiliates:
 
 
 
 
 
 
 
 
 
Administrative Billings from Services (B)
$
(46
)
 
$
(43
)
 
$
(88
)
 
$
(88
)
 
 
 
 
 
 
 
 
 
 
 

 
 
 
 
 
 
 
 
As of
 
As of
 
 
Related-Party Transactions
June 30, 2014
 
December 31, 2013
 
 
 
Millions
 
 
Receivables from PSE&G through BGS and BGSS Contracts (A)
$
114

 
$
267

 
 
Receivable from (Payable to) Services (B)
(25
)
 
(31
)
 
 
Receivable from (Payable to) PSEG (C)
13

 
97

 
 
Accounts Receivable (Payable)—Affiliated Companies, net
$
102

 
$
333

 
 
Short-Term Loan to Affiliate (Demand Note to PSEG) (D)
$
740

 
$
790

 
 
Working Capital Advances to Services (E)
$
17

 
$
17

 
 
Long-Term Accrued Taxes Receivable (Payable) 
$
(88
)
 
$
(53
)
 
 
 
 
 
 
 


PSE&G
The financial statements for PSE&G include transactions with related parties presented as follows:
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
Six Months Ended
 
 
 
June 30,
 
June 30,
 
 
Related-Party Transactions
2014
 
2013
 
2014
 
2013
 
 
 
Millions
 
 
Expense Billings from Affiliates:
 
 
 
 
 
 
 
 
 
Billings from Power through BGS and BGSS (A)
$
(297
)
 
$
(320
)
 
$
(1,028
)
 
$
(991
)
 
 
Administrative Billings from Services (B)
(64
)
 
(62
)
 
(124
)
 
(123
)
 
 
Total Expense Billings from Affiliates
$
(361
)
 
$
(382
)
 
$
(1,152
)
 
$
(1,114
)
 
 
 
 
 
 
 
 
 
 
 

 
 
 
 
 
 
 
 
As of
 
As of
 
 
Related-Party Transactions
June 30, 2014
 
December 31, 2013
 
 
 
Millions
 
 
Payable to Power through BGS and BGSS Contracts (A)
$
(114
)
 
$
(267
)
 
 
Receivable from (Payable to) Services (B)
(53
)
 
(73
)
 
 
Receivable from (Payable to) PSEG (C)
74

 
150

 
 
Accounts Receivable (Payable)—Affiliated Companies, net
$
(93
)
 
$
(190
)
 
 
Working Capital Advances to Services (E)
$
33

 
$
33

 
 
Long-Term Accrued Taxes Receivable (Payable) 
$
(63
)
 
$
(72
)
 
 
 
 
 
 
 

(A)
PSE&G has entered into a requirements contract with Power under which Power provides the gas supply services needed to meet PSE&G’s BGSS and other contractual requirements. Power has also entered into contracts to supply energy, capacity and ancillary services to PSE&G through the BGS auction process.
(B)
Services provides and bills administrative services to Power and PSE&G at cost. In addition, Power and PSE&G have other payables to Services, including amounts related to certain common costs, such as pension and OPEB costs, which Services pays on behalf of each of the operating companies.
(C)
PSEG files a consolidated federal income tax return with its affiliated companies. A tax allocation agreement exists between PSEG and each of its affiliated companies. The general operation of these agreements is that the subsidiary company will compute its taxable income on a stand-alone basis. If the result is a net tax liability, such amount shall be paid to PSEG. If there are net operating losses and/or tax credits, the subsidiary shall receive payment for the tax savings from PSEG to the extent that PSEG is able to utilize those benefits.
(D)
Power’s short-term loans with PSEG are for working capital and other short-term needs. Interest Income and Interest Expense relating to these short-term funding activities were immaterial.
(E)
Power and PSE&G have advanced working capital to Services. The amounts are included in Other Noncurrent Assets on Power’s and PSE&G’s Condensed Consolidated Balance Sheets.
Power [Member]
  
Related-Party Transactions
Related-Party Transactions
The following discussion relates to intercompany transactions, which are eliminated during the PSEG consolidation process in accordance with GAAP.
Power
The financial statements for Power include transactions with related parties presented as follows:
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
Six Months Ended
 
 
 
June 30,
 
June 30,
 
 
Related-Party Transactions
2014
 
2013
 
2014
 
2013
 
 
 
Millions
 
 
Revenue from Affiliates:
 
 
 
 
 
 
 
 
 
Billings to PSE&G through BGS and BGSS Contracts (A)
$
297

 
$
320

 
$
1,028

 
$
991

 
 
Expense Billings from Affiliates:
 
 
 
 
 
 
 
 
 
Administrative Billings from Services (B)
$
(46
)
 
$
(43
)
 
$
(88
)
 
$
(88
)
 
 
 
 
 
 
 
 
 
 
 

 
 
 
 
 
 
 
 
As of
 
As of
 
 
Related-Party Transactions
June 30, 2014
 
December 31, 2013
 
 
 
Millions
 
 
Receivables from PSE&G through BGS and BGSS Contracts (A)
$
114

 
$
267

 
 
Receivable from (Payable to) Services (B)
(25
)
 
(31
)
 
 
Receivable from (Payable to) PSEG (C)
13

 
97

 
 
Accounts Receivable (Payable)—Affiliated Companies, net
$
102

 
$
333

 
 
Short-Term Loan to Affiliate (Demand Note to PSEG) (D)
$
740

 
$
790

 
 
Working Capital Advances to Services (E)
$
17

 
$
17

 
 
Long-Term Accrued Taxes Receivable (Payable) 
$
(88
)
 
$
(53
)
 
 
 
 
 
 
 


PSE&G
The financial statements for PSE&G include transactions with related parties presented as follows:
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
Six Months Ended
 
 
 
June 30,
 
June 30,
 
 
Related-Party Transactions
2014
 
2013
 
2014
 
2013
 
 
 
Millions
 
 
Expense Billings from Affiliates:
 
 
 
 
 
 
 
 
 
Billings from Power through BGS and BGSS (A)
$
(297
)
 
$
(320
)
 
$
(1,028
)
 
$
(991
)
 
 
Administrative Billings from Services (B)
(64
)
 
(62
)
 
(124
)
 
(123
)
 
 
Total Expense Billings from Affiliates
$
(361
)
 
$
(382
)
 
$
(1,152
)
 
$
(1,114
)
 
 
 
 
 
 
 
 
 
 
 

 
 
 
 
 
 
 
 
As of
 
As of
 
 
Related-Party Transactions
June 30, 2014
 
December 31, 2013
 
 
 
Millions
 
 
Payable to Power through BGS and BGSS Contracts (A)
$
(114
)
 
$
(267
)
 
 
Receivable from (Payable to) Services (B)
(53
)
 
(73
)
 
 
Receivable from (Payable to) PSEG (C)
74

 
150

 
 
Accounts Receivable (Payable)—Affiliated Companies, net
$
(93
)
 
$
(190
)
 
 
Working Capital Advances to Services (E)
$
33

 
$
33

 
 
Long-Term Accrued Taxes Receivable (Payable) 
$
(63
)
 
$
(72
)
 
 
 
 
 
 
 

(A)
PSE&G has entered into a requirements contract with Power under which Power provides the gas supply services needed to meet PSE&G’s BGSS and other contractual requirements. Power has also entered into contracts to supply energy, capacity and ancillary services to PSE&G through the BGS auction process.
(B)
Services provides and bills administrative services to Power and PSE&G at cost. In addition, Power and PSE&G have other payables to Services, including amounts related to certain common costs, such as pension and OPEB costs, which Services pays on behalf of each of the operating companies.
(C)
PSEG files a consolidated federal income tax return with its affiliated companies. A tax allocation agreement exists between PSEG and each of its affiliated companies. The general operation of these agreements is that the subsidiary company will compute its taxable income on a stand-alone basis. If the result is a net tax liability, such amount shall be paid to PSEG. If there are net operating losses and/or tax credits, the subsidiary shall receive payment for the tax savings from PSEG to the extent that PSEG is able to utilize those benefits.
(D)
Power’s short-term loans with PSEG are for working capital and other short-term needs. Interest Income and Interest Expense relating to these short-term funding activities were immaterial.
(E)
Power and PSE&G have advanced working capital to Services. The amounts are included in Other Noncurrent Assets on Power’s and PSE&G’s Condensed Consolidated Balance Sheets.
PSE And G [Member]
  
Related-Party Transactions
Related-Party Transactions
The following discussion relates to intercompany transactions, which are eliminated during the PSEG consolidation process in accordance with GAAP.
Power
The financial statements for Power include transactions with related parties presented as follows:
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
Six Months Ended
 
 
 
June 30,
 
June 30,
 
 
Related-Party Transactions
2014
 
2013
 
2014
 
2013
 
 
 
Millions
 
 
Revenue from Affiliates:
 
 
 
 
 
 
 
 
 
Billings to PSE&G through BGS and BGSS Contracts (A)
$
297

 
$
320

 
$
1,028

 
$
991

 
 
Expense Billings from Affiliates:
 
 
 
 
 
 
 
 
 
Administrative Billings from Services (B)
$
(46
)
 
$
(43
)
 
$
(88
)
 
$
(88
)
 
 
 
 
 
 
 
 
 
 
 

 
 
 
 
 
 
 
 
As of
 
As of
 
 
Related-Party Transactions
June 30, 2014
 
December 31, 2013
 
 
 
Millions
 
 
Receivables from PSE&G through BGS and BGSS Contracts (A)
$
114

 
$
267

 
 
Receivable from (Payable to) Services (B)
(25
)
 
(31
)
 
 
Receivable from (Payable to) PSEG (C)
13

 
97

 
 
Accounts Receivable (Payable)—Affiliated Companies, net
$
102

 
$
333

 
 
Short-Term Loan to Affiliate (Demand Note to PSEG) (D)
$
740

 
$
790

 
 
Working Capital Advances to Services (E)
$
17

 
$
17

 
 
Long-Term Accrued Taxes Receivable (Payable) 
$
(88
)
 
$
(53
)
 
 
 
 
 
 
 


PSE&G
The financial statements for PSE&G include transactions with related parties presented as follows:
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
Six Months Ended
 
 
 
June 30,
 
June 30,
 
 
Related-Party Transactions
2014
 
2013
 
2014
 
2013
 
 
 
Millions
 
 
Expense Billings from Affiliates:
 
 
 
 
 
 
 
 
 
Billings from Power through BGS and BGSS (A)
$
(297
)
 
$
(320
)
 
$
(1,028
)
 
$
(991
)
 
 
Administrative Billings from Services (B)
(64
)
 
(62
)
 
(124
)
 
(123
)
 
 
Total Expense Billings from Affiliates
$
(361
)
 
$
(382
)
 
$
(1,152
)
 
$
(1,114
)
 
 
 
 
 
 
 
 
 
 
 

 
 
 
 
 
 
 
 
As of
 
As of
 
 
Related-Party Transactions
June 30, 2014
 
December 31, 2013
 
 
 
Millions
 
 
Payable to Power through BGS and BGSS Contracts (A)
$
(114
)
 
$
(267
)
 
 
Receivable from (Payable to) Services (B)
(53
)
 
(73
)
 
 
Receivable from (Payable to) PSEG (C)
74

 
150

 
 
Accounts Receivable (Payable)—Affiliated Companies, net
$
(93
)
 
$
(190
)
 
 
Working Capital Advances to Services (E)
$
33

 
$
33

 
 
Long-Term Accrued Taxes Receivable (Payable) 
$
(63
)
 
$
(72
)
 
 
 
 
 
 
 

(A)
PSE&G has entered into a requirements contract with Power under which Power provides the gas supply services needed to meet PSE&G’s BGSS and other contractual requirements. Power has also entered into contracts to supply energy, capacity and ancillary services to PSE&G through the BGS auction process.
(B)
Services provides and bills administrative services to Power and PSE&G at cost. In addition, Power and PSE&G have other payables to Services, including amounts related to certain common costs, such as pension and OPEB costs, which Services pays on behalf of each of the operating companies.
(C)
PSEG files a consolidated federal income tax return with its affiliated companies. A tax allocation agreement exists between PSEG and each of its affiliated companies. The general operation of these agreements is that the subsidiary company will compute its taxable income on a stand-alone basis. If the result is a net tax liability, such amount shall be paid to PSEG. If there are net operating losses and/or tax credits, the subsidiary shall receive payment for the tax savings from PSEG to the extent that PSEG is able to utilize those benefits.
(D)
Power’s short-term loans with PSEG are for working capital and other short-term needs. Interest Income and Interest Expense relating to these short-term funding activities were immaterial.
(E)
Power and PSE&G have advanced working capital to Services. The amounts are included in Other Noncurrent Assets on Power’s and PSE&G’s Condensed Consolidated Balance Sheets.