Long-Term Investments

12 Months Ended

Dec. 31, 2014

Long-Term Investments [Line Items]

Long-Term Investments [Text Block]

Long-Term Investments

Long-Term Investments as of December 31, 2014 and 2013 included the following:

	As of December 31,
	2014		2013
	Millions
PSE&G
Life Insurance and Supplemental Benefits	$	156	$	158
Solar Loans	187		196
Other Investments	5		7
Power
Partnerships and Corporate Joint Ventures (Equity Method Investments) (A)	121		123
Energy Holdings
Lease Investments	836		825
Partnerships and Corporate Joint Ventures:
Equity Method Investments (A)	2		3
Cost Method Investments (B)	—		1
Total Long-Term Investments	$	1,307	$	1,313

(A) During the three years ended December 31, 2014, 2013 and 2012, the amount of dividends from these investments was $17 million, $11 million and $17 million, respectively.

(B) Reflects Energy Holdings' investments in certain companies in which it does not have the ability to exercise significant influence. Such investments are accounted for under the cost method.

Leases

Energy Holdings has investments in domestic energy and real estate assets subject primarily to leveraged lease accounting. A leveraged lease is typically comprised of an investment by an equity investor and debt provided by a third party debt investor. The debt is recourse only to the assets subject to lease and is not included on PSEG’s Consolidated Balance Sheets. As an equity investor, Energy Holdings’ equity investments in the leases are comprised of the total expected lease receivables over the lease terms plus the estimated residual values at the end of the lease terms, reduced for any income not yet earned on the leases. This amount is included in Long-Term Investments on PSEG’s Consolidated Balance Sheets. The more rapid depreciation of the leased property for tax purposes creates tax cash flow that will be repaid to the taxing authority in later periods. As such, the liability for such taxes due is recorded in Deferred Income Taxes on PSEG’s Consolidated Balance Sheets. The following table shows Energy Holdings’ gross and net lease investment as of December 31, 2014 and 2013, respectively.

	As of December 31,
	2014			2013
	Millions
Lease Receivables (net of Non-Recourse Debt)	$	691		$	701
Estimated Residual Value of Leased Assets	525			529
Total Investment in Rental Receivables	1,216			1,230
Unearned and Deferred Income	(380		)	(405		)
Gross Investments in Leases	836			825
Deferred Tax Liabilities	(738		)	(727		)
Net Investments in Leases	$	98		$	98

The pre-tax income and income tax effects, excluding gains and losses on sales, related to investments in leases were as follows:

	Years Ended December 31,
	2014		2013		2012
	Millions
Pre-Tax Income (Loss) from Leases	$	24	$	11	$	78
Income Tax Expense (Benefit) on Pre-Tax Income from Leases	$	32	$	6	$	34

Equity Method Investments

Power and Energy Holdings had the following equity method investments as of December 31, 2014:

		%
Name	Location	Owned
Power
Keystone Fuels, LLC	PA	23%
Conemaugh Fuels, LLC	PA	23%
Kalaeloa	HI	50%
Energy Holdings
GWF	CA	50%
Hanford L. P. (Hanford)	CA	50%

PSE&G [Member]

Long-Term Investments [Line Items]

Long-Term Investments [Text Block]

Long-Term Investments

Long-Term Investments as of December 31, 2014 and 2013 included the following:

	As of December 31,
	2014		2013
	Millions
PSE&G
Life Insurance and Supplemental Benefits	$	156	$	158
Solar Loans	187		196
Other Investments	5		7
Power
Partnerships and Corporate Joint Ventures (Equity Method Investments) (A)	121		123
Energy Holdings
Lease Investments	836		825
Partnerships and Corporate Joint Ventures:
Equity Method Investments (A)	2		3
Cost Method Investments (B)	—		1
Total Long-Term Investments	$	1,307	$	1,313

(A) During the three years ended December 31, 2014, 2013 and 2012, the amount of dividends from these investments was $17 million, $11 million and $17 million, respectively.

(B) Reflects Energy Holdings' investments in certain companies in which it does not have the ability to exercise significant influence. Such investments are accounted for under the cost method.

Leases

Energy Holdings has investments in domestic energy and real estate assets subject primarily to leveraged lease accounting. A leveraged lease is typically comprised of an investment by an equity investor and debt provided by a third party debt investor. The debt is recourse only to the assets subject to lease and is not included on PSEG’s Consolidated Balance Sheets. As an equity investor, Energy Holdings’ equity investments in the leases are comprised of the total expected lease receivables over the lease terms plus the estimated residual values at the end of the lease terms, reduced for any income not yet earned on the leases. This amount is included in Long-Term Investments on PSEG’s Consolidated Balance Sheets. The more rapid depreciation of the leased property for tax purposes creates tax cash flow that will be repaid to the taxing authority in later periods. As such, the liability for such taxes due is recorded in Deferred Income Taxes on PSEG’s Consolidated Balance Sheets. The following table shows Energy Holdings’ gross and net lease investment as of December 31, 2014 and 2013, respectively.

	As of December 31,
	2014			2013
	Millions
Lease Receivables (net of Non-Recourse Debt)	$	691		$	701
Estimated Residual Value of Leased Assets	525			529
Total Investment in Rental Receivables	1,216			1,230
Unearned and Deferred Income	(380		)	(405		)
Gross Investments in Leases	836			825
Deferred Tax Liabilities	(738		)	(727		)
Net Investments in Leases	$	98		$	98

The pre-tax income and income tax effects, excluding gains and losses on sales, related to investments in leases were as follows:

	Years Ended December 31,
	2014		2013		2012
	Millions
Pre-Tax Income (Loss) from Leases	$	24	$	11	$	78
Income Tax Expense (Benefit) on Pre-Tax Income from Leases	$	32	$	6	$	34

Equity Method Investments

Power and Energy Holdings had the following equity method investments as of December 31, 2014:

		%
Name	Location	Owned
Power
Keystone Fuels, LLC	PA	23%
Conemaugh Fuels, LLC	PA	23%
Kalaeloa	HI	50%
Energy Holdings
GWF	CA	50%
Hanford L. P. (Hanford)	CA	50%

Power [Member]

Long-Term Investments [Line Items]

Long-Term Investments [Text Block]

Long-Term Investments

Long-Term Investments as of December 31, 2014 and 2013 included the following:

	As of December 31,
	2014		2013
	Millions
PSE&G
Life Insurance and Supplemental Benefits	$	156	$	158
Solar Loans	187		196
Other Investments	5		7
Power
Partnerships and Corporate Joint Ventures (Equity Method Investments) (A)	121		123
Energy Holdings
Lease Investments	836		825
Partnerships and Corporate Joint Ventures:
Equity Method Investments (A)	2		3
Cost Method Investments (B)	—		1
Total Long-Term Investments	$	1,307	$	1,313

(A) During the three years ended December 31, 2014, 2013 and 2012, the amount of dividends from these investments was $17 million, $11 million and $17 million, respectively.

(B) Reflects Energy Holdings' investments in certain companies in which it does not have the ability to exercise significant influence. Such investments are accounted for under the cost method.

Leases

Energy Holdings has investments in domestic energy and real estate assets subject primarily to leveraged lease accounting. A leveraged lease is typically comprised of an investment by an equity investor and debt provided by a third party debt investor. The debt is recourse only to the assets subject to lease and is not included on PSEG’s Consolidated Balance Sheets. As an equity investor, Energy Holdings’ equity investments in the leases are comprised of the total expected lease receivables over the lease terms plus the estimated residual values at the end of the lease terms, reduced for any income not yet earned on the leases. This amount is included in Long-Term Investments on PSEG’s Consolidated Balance Sheets. The more rapid depreciation of the leased property for tax purposes creates tax cash flow that will be repaid to the taxing authority in later periods. As such, the liability for such taxes due is recorded in Deferred Income Taxes on PSEG’s Consolidated Balance Sheets. The following table shows Energy Holdings’ gross and net lease investment as of December 31, 2014 and 2013, respectively.

	As of December 31,
	2014			2013
	Millions
Lease Receivables (net of Non-Recourse Debt)	$	691		$	701
Estimated Residual Value of Leased Assets	525			529
Total Investment in Rental Receivables	1,216			1,230
Unearned and Deferred Income	(380		)	(405		)
Gross Investments in Leases	836			825
Deferred Tax Liabilities	(738		)	(727		)
Net Investments in Leases	$	98		$	98

The pre-tax income and income tax effects, excluding gains and losses on sales, related to investments in leases were as follows:

	Years Ended December 31,
	2014		2013		2012
	Millions
Pre-Tax Income (Loss) from Leases	$	24	$	11	$	78
Income Tax Expense (Benefit) on Pre-Tax Income from Leases	$	32	$	6	$	34

Equity Method Investments

Power and Energy Holdings had the following equity method investments as of December 31, 2014:

		%
Name	Location	Owned
Power
Keystone Fuels, LLC	PA	23%
Conemaugh Fuels, LLC	PA	23%
Kalaeloa	HI	50%
Energy Holdings
GWF	CA	50%
Hanford L. P. (Hanford)	CA	50%