Guarantees of Debt

6 Months Ended

Jun. 30, 2015

Each series of Power’s Senior Notes, Pollution Control Notes and its syndicated revolving credit facilities are fully and unconditionally and jointly and severally guaranteed by its subsidiaries, PSEG Fossil LLC, PSEG Nuclear LLC and PSEG Energy Resources & Trade LLC. The following tables present condensed financial information for the guarantor subsidiaries, as well as Power’s non-guarantor subsidiaries.




	Power			Guarantor Subsidiaries			Other Subsidiaries			Consolidating Adjustments			Consolidated
	Millions
Three Months Ended June 30, 2015
Operating Revenues	$	—		$	1,012		$	39		$	(26	)	$	1,025
Operating Expenses	(1		)	787			37			(26		)	797
Operating Income (Loss)	1			225			2			—			228
Equity Earnings (Losses) of Subsidiaries	186			(1		)	5			(185		)	5
Other Income	12			55			—			(12		)	55
Other Deductions	(1		)	(6		)	—			—			(7		)
Other-Than-Temporary Impairments	—			(10		)	—			—			(10		)
Interest Expense	(33		)	(7		)	(5		)	12			(33		)
Income Tax Benefit (Expense)	1			(73		)	—			—			(72		)
Net Income (Loss)	$	166		$	183		$	2		$	(185	)	$	166
Comprehensive Income (Loss)	$	159		$	169		$	2		$	(171	)	$	159
Six Months Ended June 30, 2015
Operating Revenues	$	—		$	2,727		$	107		$	(84	)	$	2,750
Operating Expenses	4			1,918			100			(84		)	1,938
Operating Income (Loss)	(4		)	809			7			—			812
Equity Earnings (Losses) of Subsidiaries	535			(2		)	8			(533		)	8
Other Income	23			85			—			(24		)	84
Other Deductions	(1		)	(17		)	—			—			(18		)
Other-Than-Temporary Impairments	—			(15		)	—			—			(15		)
Interest Expense	(62		)	(16		)	(10		)	24			(64		)
Income Tax Benefit (Expense)	10			(315		)	(1		)	—			(306		)
Net Income (Loss)	$	501		$	529		$	4		$	(533	)	$	501
Comprehensive Income (Loss)	$	506		$	520		$	4		$	(524	)	$	506
Six Months Ended June 30, 2015
Net Cash Provided By (Used In) Operating Activities	$	410		$	1,508		$	61		$	(687	)	$	1,292
Net Cash Provided By (Used In) Investing Activities	$	(480	)	$	(963	)	$	(210	)	$	766		$	(887	)
Net Cash Provided By (Used In) Financing Activities	$	70		$	(543	)	$	150		$	(79	)	$	(402	)




	Power			Guarantor Subsidiaries			Other Subsidiaries			Consolidating Adjustments			Consolidated
	Millions
Three Months Ended June 30, 2014
Operating Revenues	$	—		$	972		$	42		$	(28	)	$	986
Operating Expenses	5			903			40			(29		)	919
Operating Income (Loss)	(5		)	69			2			1			67
Equity Earnings (Losses) of Subsidiaries	57			(3		)	3			(54		)	3
Other Income	8			47			—			(9		)	46
Other Deductions	—			(8		)	—			(1		)	(9		)
Other-Than-Temporary Impairments	—			(2		)	—			—			(2		)
Interest Expense	(27		)	(6		)	(5		)	9			(29		)
Income Tax Benefit (Expense)	21			(43		)	—			—			(22		)
Net Income (Loss)	$	54		$	54		$	—		$	(54	)	$	54
Comprehensive Income (Loss)	$	67		$	66		$	—		$	(66	)	$	67
Six Months Ended June 30, 2014
Operating Revenues	$	—		$	2,656		$	82		$	(52	)	$	2,686
Operating Expenses	9			2,307			74			(53		)	2,337
Operating Income (Loss)	(9		)	349			8			1			349
Equity Earnings (Losses) of Subsidiaries	234			(3		)	7			(231		)	7
Other Income	16			80			—			(17		)	79
Other Deductions	(4		)	(14		)	—			(1		)	(19		)
Other-Than-Temporary Impairments	—			(4		)	—			—			(4		)
Interest Expense	(55		)	(13		)	(10		)	17			(61		)
Income Tax Benefit (Expense)	36			(168		)	(1		)	—			(133		)
Net Income (Loss)	$	218		$	227		$	4		$	(231	)	$	218
Comprehensive Income (Loss)	$	237		$	242		$	4		$	(246	)	$	237
Six Months Ended June 30, 2014
Net Cash Provided By (Used In) Operating Activities	$	292		$	950		$	32		$	(460	)	$	814
Net Cash Provided By (Used In) Investing Activities	$	138		$	(415	)	$	(16	)	$	57		$	(236	)
Net Cash Provided By (Used In) Financing Activities	$	(430	)	$	(534	)	$	(17	)	$	403		$	(578	)




	Power		Guarantor Subsidiaries		Other Subsidiaries		Consolidating Adjustments			Consolidated
	Millions
As of June 30, 2015
Current Assets	$	4,613	$	1,678	$	136	$	(4,216	)	$	2,211
Property, Plant and Equipment, net	80		6,290		1,337		—			7,707
Investment in Subsidiaries	4,409		289		—		(4,698		)	—
Noncurrent Assets	258		2,026		132		(168		)	2,248
Total Assets	$	9,360	$	10,283	$	1,605	$	(9,082	)	$	12,166
Current Liabilities	$	987	$	3,532	$	774	$	(4,216	)	$	1,077
Noncurrent Liabilities	465		2,534		350		(168		)	3,181
Long-Term Debt	2,244		—		—		—			2,244
Member's Equity	5,664		4,217		481		(4,698		)	5,664
Total Liabilities and Member's Equity	$	9,360	$	10,283	$	1,605	$	(9,082	)	$	12,166
As of December 31, 2014
Current Assets	$	4,263	$	2,037	$	150	$	(4,091	)	$	2,359
Property, Plant and Equipment, net	81		6,265		1,169		—			7,515
Investment in Subsidiaries	4,516		120		—		(4,636		)	—
Noncurrent Assets	278		1,952		137		(195		)	2,172
Total Assets	$	9,138	$	10,374	$	1,456	$	(8,922	)	$	12,046
Current Liabilities	$	883	$	3,606	$	786	$	(4,091	)	$	1,184
Noncurrent Liabilities	454		2,442		360		(195		)	3,061
Long-Term Debt	2,243		—		—		—			2,243
Member's Equity	5,558		4,326		310		(4,636		)	5,558
Total Liabilities and Member's Equity	$	9,138	$	10,374	$	1,456	$	(8,922	)	$	12,046

Power [Member]

Debt Instrument [Line Items]

Guarantees of Debt




	Power			Guarantor Subsidiaries			Other Subsidiaries			Consolidating Adjustments			Consolidated
	Millions
Three Months Ended June 30, 2015
Operating Revenues	$	—		$	1,012		$	39		$	(26	)	$	1,025
Operating Expenses	(1		)	787			37			(26		)	797
Operating Income (Loss)	1			225			2			—			228
Equity Earnings (Losses) of Subsidiaries	186			(1		)	5			(185		)	5
Other Income	12			55			—			(12		)	55
Other Deductions	(1		)	(6		)	—			—			(7		)
Other-Than-Temporary Impairments	—			(10		)	—			—			(10		)
Interest Expense	(33		)	(7		)	(5		)	12			(33		)
Income Tax Benefit (Expense)	1			(73		)	—			—			(72		)
Net Income (Loss)	$	166		$	183		$	2		$	(185	)	$	166
Comprehensive Income (Loss)	$	159		$	169		$	2		$	(171	)	$	159
Six Months Ended June 30, 2015
Operating Revenues	$	—		$	2,727		$	107		$	(84	)	$	2,750
Operating Expenses	4			1,918			100			(84		)	1,938
Operating Income (Loss)	(4		)	809			7			—			812
Equity Earnings (Losses) of Subsidiaries	535			(2		)	8			(533		)	8
Other Income	23			85			—			(24		)	84
Other Deductions	(1		)	(17		)	—			—			(18		)
Other-Than-Temporary Impairments	—			(15		)	—			—			(15		)
Interest Expense	(62		)	(16		)	(10		)	24			(64		)
Income Tax Benefit (Expense)	10			(315		)	(1		)	—			(306		)
Net Income (Loss)	$	501		$	529		$	4		$	(533	)	$	501
Comprehensive Income (Loss)	$	506		$	520		$	4		$	(524	)	$	506
Six Months Ended June 30, 2015
Net Cash Provided By (Used In) Operating Activities	$	410		$	1,508		$	61		$	(687	)	$	1,292
Net Cash Provided By (Used In) Investing Activities	$	(480	)	$	(963	)	$	(210	)	$	766		$	(887	)
Net Cash Provided By (Used In) Financing Activities	$	70		$	(543	)	$	150		$	(79	)	$	(402	)




	Power			Guarantor Subsidiaries			Other Subsidiaries			Consolidating Adjustments			Consolidated
	Millions
Three Months Ended June 30, 2014
Operating Revenues	$	—		$	972		$	42		$	(28	)	$	986
Operating Expenses	5			903			40			(29		)	919
Operating Income (Loss)	(5		)	69			2			1			67
Equity Earnings (Losses) of Subsidiaries	57			(3		)	3			(54		)	3
Other Income	8			47			—			(9		)	46
Other Deductions	—			(8		)	—			(1		)	(9		)
Other-Than-Temporary Impairments	—			(2		)	—			—			(2		)
Interest Expense	(27		)	(6		)	(5		)	9			(29		)
Income Tax Benefit (Expense)	21			(43		)	—			—			(22		)
Net Income (Loss)	$	54		$	54		$	—		$	(54	)	$	54
Comprehensive Income (Loss)	$	67		$	66		$	—		$	(66	)	$	67
Six Months Ended June 30, 2014
Operating Revenues	$	—		$	2,656		$	82		$	(52	)	$	2,686
Operating Expenses	9			2,307			74			(53		)	2,337
Operating Income (Loss)	(9		)	349			8			1			349
Equity Earnings (Losses) of Subsidiaries	234			(3		)	7			(231		)	7
Other Income	16			80			—			(17		)	79
Other Deductions	(4		)	(14		)	—			(1		)	(19		)
Other-Than-Temporary Impairments	—			(4		)	—			—			(4		)
Interest Expense	(55		)	(13		)	(10		)	17			(61		)
Income Tax Benefit (Expense)	36			(168		)	(1		)	—			(133		)
Net Income (Loss)	$	218		$	227		$	4		$	(231	)	$	218
Comprehensive Income (Loss)	$	237		$	242		$	4		$	(246	)	$	237
Six Months Ended June 30, 2014
Net Cash Provided By (Used In) Operating Activities	$	292		$	950		$	32		$	(460	)	$	814
Net Cash Provided By (Used In) Investing Activities	$	138		$	(415	)	$	(16	)	$	57		$	(236	)
Net Cash Provided By (Used In) Financing Activities	$	(430	)	$	(534	)	$	(17	)	$	403		$	(578	)




	Power		Guarantor Subsidiaries		Other Subsidiaries		Consolidating Adjustments			Consolidated
	Millions
As of June 30, 2015
Current Assets	$	4,613	$	1,678	$	136	$	(4,216	)	$	2,211
Property, Plant and Equipment, net	80		6,290		1,337		—			7,707
Investment in Subsidiaries	4,409		289		—		(4,698		)	—
Noncurrent Assets	258		2,026		132		(168		)	2,248
Total Assets	$	9,360	$	10,283	$	1,605	$	(9,082	)	$	12,166
Current Liabilities	$	987	$	3,532	$	774	$	(4,216	)	$	1,077
Noncurrent Liabilities	465		2,534		350		(168		)	3,181
Long-Term Debt	2,244		—		—		—			2,244
Member's Equity	5,664		4,217		481		(4,698		)	5,664
Total Liabilities and Member's Equity	$	9,360	$	10,283	$	1,605	$	(9,082	)	$	12,166
As of December 31, 2014
Current Assets	$	4,263	$	2,037	$	150	$	(4,091	)	$	2,359
Property, Plant and Equipment, net	81		6,265		1,169		—			7,515
Investment in Subsidiaries	4,516		120		—		(4,636		)	—
Noncurrent Assets	278		1,952		137		(195		)	2,172
Total Assets	$	9,138	$	10,374	$	1,456	$	(8,922	)	$	12,046
Current Liabilities	$	883	$	3,606	$	786	$	(4,091	)	$	1,184
Noncurrent Liabilities	454		2,442		360		(195		)	3,061
Long-Term Debt	2,243		—		—		—			2,243
Member's Equity	5,558		4,326		310		(4,636		)	5,558
Total Liabilities and Member's Equity	$	9,138	$	10,374	$	1,456	$	(8,922	)	$	12,046