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Financial Risk Management Activities (Tables)
 9 Months Ended
Sep. 30, 2014
Schedule Of Derivative Transactions Designated And Effective As Cash Flow Hedges
 
 
 
 
 
 
 
 
As of
 
As of
 
 
 
September 30,
2014
 
December 31,
2013
 
 
 
Millions
 
 
Fair Value of Cash Flow Hedges
$
3

 
$
(4
)
 
 
Impact on Accumulated Other Comprehensive Income (Loss) (after tax)
$
2

 
$
(1
)
 
 
 
 
 
 
 
Schedule Of Derivative Instruments Fair Value In Balance Sheets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of September 30, 2014
 
 
 
 
Power (A)
 
PSE&G (A)
 
PSEG (A)
 
Consolidated
 
 
 
 
Cash Flow
Hedges
 
Non
Hedges
 
 
 
 
 
Non
Hedges
 
Fair Value
Hedges
 
 
 
 
Balance Sheet Location
 
Energy-
Related
Contracts
 
Energy-
Related
Contracts
 
Netting
(B)
 
Total
Power
 
Energy-
Related
Contracts
 
Interest
Rate
Swaps
 
Total
Derivatives
 
 
 
 
Millions
 
 
Derivative Contracts
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Current Assets
 
$
4

 
$
517

 
$
(471
)
 
$
50

 
$
5

 
$
16

 
$
71

 
 
Noncurrent Assets
 
—

 
166

 
(155
)
 
11

 
8

 
10

 
29

 
 
Total Mark-to-Market Derivative Assets
 
$
4

 
$
683

 
$
(626
)
 
$
61

 
$
13

 
$
26

 
$
100

 
 
Derivative Contracts
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Current Liabilities
 
$
(1
)
 
$
(702
)
 
$
594

 
$
(109
)
 
$
—

 
$
—

 
$
(109
)
 
 
Noncurrent Liabilities
 
—

 
(175
)
 
138

 
(37
)
 
—

 
—

 
(37
)
 
 
Total Mark-to-Market Derivative (Liabilities)
 
$
(1
)
 
$
(877
)
 
$
732

 
$
(146
)
 
$
—

 
$
—

 
$
(146
)
 
 
Total Net Mark-to-Market Derivative Assets (Liabilities)
 
$
3

 
$
(194
)
 
$
106

 
$
(85
)
 
$
13

 
$
26

 
$
(46
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of December 31, 2013
 
 
 
 
Power (A)
 
PSE&G (A)
 
PSEG (A)
 
Consolidated
 
 
 
 
Cash Flow
Hedges
 
Non
Hedges
 
 
 
 
 
Non
Hedges
 
Fair Value
Hedges
 
 
 
 
Balance Sheet Location
 
Energy-
Related
Contracts
 
Energy-
Related
Contracts
 
Netting
(B)
 
Total
Power
 
Energy-
Related
Contracts
 
Interest
Rate
Swaps
 
Total
Derivatives
 
 
 
 
Millions
 
 
Derivative Contracts
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Current Assets
 
$
—

 
$
323

 
$
(266
)
 
$
57

 
$
25

 
$
16

 
$
98

 
 
Noncurrent Assets
 
—

 
155

 
(83
)
 
72

 
69

 
22

 
163

 
 
Total Mark-to-Market Derivative Assets
 
$
—

 
$
478

 
$
(349
)
 
$
129

 
$
94

 
$
38

 
$
261

 
 
Derivative Contracts
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Current Liabilities
 
$
(4
)
 
$
(343
)
 
$
271

 
$
(76
)
 
$
—

 
$
—

 
$
(76
)
 
 
Noncurrent Liabilities
 
—

 
(111
)
 
80

 
(31
)
 
—

 
—

 
(31
)
 
 
Total Mark-to-Market Derivative (Liabilities)
 
$
(4
)
 
$
(454
)
 
$
351

 
$
(107
)
 
$
—

 
$
—

 
$
(107
)
 
 
Total Net Mark-to-Market Derivative Assets (Liabilities)
 
$
(4
)
 
$
24

 
$
2

 
$
22

 
$
94

 
$
38

 
$
154

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(A)
Substantially all of Power's and PSEG's derivative instruments are contracts subject to master netting agreements. Contracts not subject to master netting or similar agreements are immaterial and did not have any collateral posted or received as of September 30, 2014 and December 31, 2013. PSE&G does not have any derivative contracts subject to master netting or similar agreements.
(B)
Represents the netting of fair value balances with the same counterparty (where the right of offset exists) and the application of collateral. All cash collateral received or posted that has been allocated to derivative positions, where the right of offset exists, has been offset in the Condensed Consolidated Balance Sheets. As of September 30, 2014 and December 31, 2013, net cash collateral (received) paid of $106 million and $2 million, respectively, were netted against the corresponding net derivative contract positions. Of the $106 million as of September 30, 2014, $(12) million and $(21) million of cash collateral was netted against current assets and noncurrent assets, respectively, and $135 million and $4 million were netted against current liabilities and noncurrent liabilities, respectively. Of the $2 million as of December 31, 2013, cash collateral of $(3) million and $5 million were netted against noncurrent assets and current liabilities, respectively.
Schedule Of Derivative Instruments Designated As Cash Flow Hedges
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivatives in
Cash Flow Hedging
Relationships
 
Amount of
Pre-Tax
Gain (Loss)
Recognized in
AOCI on
Derivatives
(Effective
Portion)
 
Location
of Pre-Tax Gain
(Loss)  Reclassified
from AOCI into
Income
 
Amount of
Pre-Tax
Gain (Loss)
Reclassified
from AOCI
into Income
(Effective
Portion)
 
Location of
Pre-Tax Gain
(Loss) Recognized in
Income on
Derivatives
(Ineffective Portion)
 
Amount of
Pre-Tax
Gain (Loss)
Recognized in
Income on
Derivatives
(Ineffective
Portion)
 
 
 
Three Months Ended
 
 
 
Three Months Ended
 
 
 
Three Months Ended
 
 
 
September 30,
 
 
 
September 30,
 
 
 
September 30,
 
 
 
2014
 
2013
 
                              
 
2014
 
2013
 
 
 
2014
 
2013
 
 
 
 
Millions
 
 
PSEG
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Energy-Related Contracts
 
$
3

 
$
1

 
Operating Revenues
 
$
1

 
$
3

 
Operating Revenues
 
$
—

 
$
(1
)
 
 
Total PSEG
 
$
3

 
$
1

 
 
 
$
1

 
$
3

 
 
 
$
—

 
$
(1
)
 
 
Power
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Energy-Related Contracts
 
$
3

 
$
1

 
Operating Revenues
 
$
1

 
$
3

 
Operating Revenues
 
$
—

 
$
(1
)
 
 
Total Power
 
$
3

 
$
1

 
 
 
$
1

 
$
3

 
 
 
$
—

 
$
(1
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The following shows the effect on the Condensed Consolidated Statements of Operations and on Accumulated Other Comprehensive Income (AOCI) of derivative instruments designated as cash flow hedges for the nine months ended September 30, 2014 and 2013.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivatives in
Cash Flow Hedging
Relationships
 
Amount of
Pre-Tax
Gain (Loss)
Recognized in
AOCI on
Derivatives
(Effective
Portion)
 
Location
of Pre-Tax Gain
(Loss) Reclassified
from AOCI into
Income
 
Amount of
Pre-Tax
Gain (Loss)
Reclassified
from AOCI
into Income
(Effective
Portion)
 
Location of
Pre-Tax Gain
(Loss) Recognized in
Income on
Derivatives
(Ineffective Portion)
 
Amount of
Pre-Tax
Gain (Loss)
Recognized in
Income on
Derivatives
(Ineffective
Portion)
 
 
 
Nine Months Ended
 
 
 
Nine Months Ended
 
 
 
Nine Months Ended
 
 
 
September 30,
 
 
 
September 30,
 
 
 
September 30,
 
 
 
2014
 
2013
 
                              
 
2014
 
2013
 
 
 
2014
 
2013
 
 
 
 
Millions
 
 
PSEG
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Energy-Related Contracts
 
$
(4
)
 
$
1

 
Operating Revenues
 
$
(11
)
 
$
11

 
Operating Revenues
 
$
—

 
$
(1
)
 
 
Interest Rate Swaps
 
—

 
—

 
Interest Expense
 
—

 
(1
)
 
 
 
—

 
—

 
 
Total PSEG
 
$
(4
)
 
$
1

 
 
 
$
(11
)
 
$
10

 
 
 
$
—

 
$
(1
)
 
 
Power
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Energy-Related Contracts
 
$
(4
)
 
$
1

 
Operating Revenues
 
$
(11
)
 
$
11

 
Operating Revenues
 
$
—

 
$
(1
)
 
 
Total Power
 
$
(4
)
 
$
1

 
 
 
$
(11
)
 
$
11

 
 
 
$
—

 
$
(1
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) [Table Text Block]
 
 
 
 
 
 
 
 
Accumulated Other Comprehensive Income
 
Pre-Tax
 
After-Tax
 
 
 
 
Millions
 
 
Balance as of December 31, 2013
 
$
(4
)
 
$
(2
)

 
Net Loss Recognized in AOCI
 
(7
)
 
(4
)
 
 
Loss Reclassified into Income
 
12

 
7

 
 
Balance as of June 30, 2014
 
$
1

 
$
1

 
 
Gain Recognized in AOCI
 
3

 
2

 
 
Gain Reclassified into Income
 
(1
)
 
(1
)
 
 
Balance as of September 30, 2014
 
$
3

 
$
2

 
 
 
 
 
 
 
 
Schedule Of Derivative Instruments Not Designated As Hedging Instruments And Impact On Results Of Operations
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivatives Not Designated as Hedges
 
Location of Pre-Tax
Gain (Loss)
Recognized in Income
on Derivatives
 
Pre-Tax Gain (Loss) Recognized in Income on Derivatives
 
 
 
 
 
 
Three Months Ended
 
Nine Months Ended
 
 
 
 
 
 
September 30,
 
September 30,
 
 
 
 
 
 
2014
 
2013
 
2014
 
2013
 
 
 
 
 
 
Millions
 
 
PSEG and Power
 
 
 
 
 
 
 
 
 
 
 
 
Energy-Related Contracts
 
Operating Revenues
 
$
93

 
$
14

 
$
(759
)
 
$
(32
)
 
 
Energy-Related Contracts
 
Energy Costs
 
(12
)
 
10

 
65

 
63

 
 
Total PSEG and Power
 
 
 
$
81

 
$
24

 
$
(694
)
 
$
31

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Schedule Of Gross Volume, On Absolute Value Basis For Derivative Contracts
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Type
 
Notional
 
Total
 
PSEG
 
Power
 
PSE&G
 
 
 
 
 
 
Millions
 
 
As of September 30, 2014
 
 
 
 
 
 
 
 
 
 
 
 
Natural Gas
 
Dth
 
341

 
—

 
277

 
64

 
 
Electricity
 
MWh
 
329

 
—

 
329

 
—

 
 
Financial Transmission Rights (FTRs)
 
MWh
 
21

 
—

 
21

 
—

 
 
Interest Rate Swaps
 
U.S. Dollars
 
850

 
850

 
—

 
—

 
 
As of December 31, 2013
 
 
 
 
 
 
 
 
 
 
 
 
Natural Gas
 
Dth
 
614

 
—

 
466

 
148

 
 
Electricity
 
MWh
 
243

 
—

 
243

 
—

 
 
FTRs
 
MWh
 
16

 
—

 
16

 
—

 
 
Interest Rate Swaps
 
U.S. Dollars
 
850

 
850

 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Power [Member]
  
Schedule Providing Credit Risk From Others, Net Of Collateral
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Rating
 
Current
Exposure
 
Securities
Held as
Collateral
 
Net
Exposure
 
Number of
Counterparties
>10%
 
Net Exposure of
Counterparties
>10%
 
 
 
 
 
Millions
 
 
 
Millions
 
 
 
Investment Grade—External Rating
 
$
89

 
$
27

 
$
77

 
2

 
$
52

(A) 
 
 
Non-Investment Grade—External Rating
 
1

 
—

 
1

 
—

 
—

  
 
 
Investment Grade—No External Rating
 
1

 
—

 
1

 
—

 
—

  
 
 
Non-Investment Grade—No External Rating
 
—

 
—

 
—

 
—

 
—

  
 
 
Total
 
$
91

 
$
27

 
$
79

 
2

 
$
52

  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

(A)
Includes net exposure of $21 million with PSE&G. The remaining net exposure of $31 million is with a nonaffiliated power purchaser which is a regulated investment grade counterparty.