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Financial Risk Management Activities (Tables)
 9 Months Ended
Sep. 30, 2015
Derivative Instruments and Hedging Activities Disclosures [Line Items]  
Schedule Of Derivative Transactions Designated And Effective As Cash Flow Hedges
As of September 30, 2015 and December 31, 2014, the fair value and the impact on Accumulated Other Comprehensive Income (Loss) associated with accounting hedge activity were as follows:
 
 
 
 
 
 
 
 
As of
 
As of
 
 
 
September 30,
2015
 
December 31,
2014
 
 
 
Millions
 
 
Fair Value of Cash Flow Hedges
$
2

 
$
18

 
 
Impact on Accumulated Other Comprehensive Income (Loss) (after tax)
$
1

 
$
10

 
 
 
 
 
 
 
Schedule Of Derivative Instruments Fair Value In Balance Sheets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of September 30, 2015
 
 
 
 
Power (A)
 
PSE&G (A)
 
PSEG (A)
 
Consolidated
 
 
 
 
Cash Flow
Hedges
 
Not Designated
 
 
 
 
 
Not Designated
 
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
 
$
2

 
$
413

 
$
(268
)
 
$
147

 
$
4

 
$
11

 
$
162

 
 
Noncurrent Assets
 
—

 
284

 
(193
)
 
91

 
—

 
—

 
91

 
 
Total Mark-to-Market Derivative Assets
 
$
2

 
$
697

 
$
(461
)
 
$
238

 
$
4

 
$
11

 
$
253

 
 
Derivative Contracts
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Current Liabilities
 
$
—

 
$
(311
)
 
$
241

 
$
(70
)
 
$
—

 
$
—

 
$
(70
)
 
 
Noncurrent Liabilities
 
—

 
(178
)
 
162

 
(16
)
 
(7
)
 
—

 
(23
)
 
 
Total Mark-to-Market Derivative (Liabilities)
 
$
—

 
$
(489
)
 
$
403

 
$
(86
)
 
$
(7
)
 
$
—

 
$
(93
)
 
 
Total Net Mark-to-Market Derivative Assets (Liabilities)
 
$
2

 
$
208

 
$
(58
)
 
$
152

 
$
(3
)
 
$
11

 
$
160

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of December 31, 2014
 
 
 
 
Power (A)
 
PSE&G (A)
 
PSEG (A)
 
Consolidated
 
 
 
 
Cash Flow
Hedges
 
Not Designated
 
 
 
 
 
Not Designated
 
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
 
$
18

 
$
597

 
$
(408
)
 
$
207

 
$
18

 
$
15

 
$
240

 
 
Noncurrent Assets
 
—

 
171

 
(109
)
 
62

 
8

 
7

 
77

 
 
Total Mark-to-Market Derivative Assets
 
$
18

 
$
768

 
$
(517
)
 
$
269

 
$
26

 
$
22

 
$
317

 
 
Derivative Contracts
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Current Liabilities
 
$
—

 
$
(568
)
 
$
436

 
$
(132
)
 
$
—

 
$
—

 
$
(132
)
 
 
Noncurrent Liabilities
 
—

 
(138
)
 
105

 
(33
)
 
—

 
—

 
(33
)
 
 
Total Mark-to-Market Derivative (Liabilities)
 
$
—

 
$
(706
)
 
$
541

 
$
(165
)
 
$
—

 
$
—

 
$
(165
)
 
 
Total Net Mark-to-Market Derivative Assets (Liabilities)
 
$
18

 
$
62

 
$
24

 
$
104

 
$
26

 
$
22

 
$
152

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(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, 2015 and December 31, 2014. 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 on the Condensed Consolidated Balance Sheets. As of September 30, 2015 and December 31, 2014, net cash collateral (received) paid of $(58) million and $24 million, respectively, were netted against the corresponding net derivative contract positions. Of the $(58) million as of September 30, 2015, $(32) million and $(38) million of cash collateral were netted against current assets and noncurrent assets, respectively, and $5 million and $7 million were netted against current liabilities and noncurrent liabilities, respectively. Of the $24 million as of December 31, 2014, $(4) million and $(8) million were netted against current assets and noncurrent assets, respectively, and $32 million and $4 million were netted against current liabilities and noncurrent liabilities, respectively.
Schedule Of Derivative Instruments Designated As Cash Flow Hedges
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 three months ended September 30, 2015 and 2014.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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,
 
 
 
2015
 
2014
 
                              
 
2015
 
2014
 
 
 
2015
 
2014
 
 
 
 
Millions
 
 
PSEG
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Energy-Related Contracts
 
$
1

 
$
3

 
Operating Revenues
 
$
—

 
$
1

 
Operating Revenues
 
$
—

 
$
—

 
 
Total PSEG
 
$
1

 
$
3

 
 
 
$
—

 
$
1

 
 
 
$
—

 
$
—

 
 
Power
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Energy-Related Contracts
 
$
1

 
$
3

 
Operating Revenues
 
$
—

 
$
1

 
Operating Revenues
 
$
—

 
$
—

 
 
Total Power
 
$
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, 2015 and 2014.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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,
 
 
 
2015
 
2014
 
                              
 
2015
 
2014
 
 
 
2015
 
2014
 
 
 
 
Millions
 
 
PSEG
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Energy-Related Contracts
 
$
2

 
$
(4
)
 
Operating Revenues
 
$
17

 
$
(11
)
 
Operating Revenues
 
$
—

 
$
—

 
 
Total PSEG
 
$
2

 
$
(4
)
 
 
 
$
17

 
$
(11
)
 
 
 
$
—

 
$
—

 
 
Power
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Energy-Related Contracts
 
$
2

 
$
(4
)
 
Operating Revenues
 
$
17

 
$
(11
)
 
Operating Revenues
 
$
—

 
$
—

 
 
Total Power
 
$
2

 
$
(4
)
 
 
 
$
17

 
$
(11
)
 
 
 
$
—

 
$
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    
Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) [Table Text Block]
The following reconciles the Accumulated Other Comprehensive Income for derivative activity included in the Accumulated Other Comprehensive Loss of PSEG on a pre-tax and after-tax basis.
 
 
 
 
 
 
 
 
Accumulated Other Comprehensive Income
 
Pre-Tax
 
After-Tax
 
 
 
 
Millions
 
 
Balance as of December 31, 2014
 
$
17

 
$
10


 
Gain Recognized in AOCI
 
1

 
1

 
 
Less: Gain Reclassified into Income
 
(17
)
 
(10
)
 
 
Balance as of June 30, 2015
 
$
1

 
$
1

 
 
Gain Recognized in AOCI
 
1

—

—

 
 
Less: Gain Reclassified into Income
 
—

 
—

 
 
Balance as of September 30, 2015
 
$
2

 
$
1

 
 
 
 
 
 
 
 
Schedule Of Derivative Instruments Not Designated As Hedging Instruments And Impact On Results Of Operations
The following shows the effect on the Condensed Consolidated Statements of Operations of derivative instruments not designated as hedging instruments or as normal purchases and sales for the three months and nine months ended September 30, 2015 and 2014.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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,
 
 
 
 
 
 
2015
 
2014
 
2015
 
2014
 
 
 
 
 
 
Millions
 
 
PSEG and Power
 
 
 
 
 
 
 
 
 
 
 
 
Energy-Related Contracts
 
Operating Revenues
 
$
154

 
$
93

 
$
202

 
$
(759
)
 
 
Energy-Related Contracts
 
Energy Costs
 
(4
)
 
(12
)
 
(4
)
 
65

 
 
Total PSEG and Power
 
 
 
$
150

 
$
81

 
$
198

 
$
(694
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Schedule Of Gross Volume, On Absolute Value Basis For Derivative Contracts
The following reflects the gross volume, on an absolute value basis, of derivatives as of September 30, 2015 and December 31, 2014.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Type
 
Notional
 
Total
 
PSEG
 
Power
 
PSE&G
 
 
 
 
 
 
Millions
 
 
As of September 30, 2015
 
 
 
 
 
 
 
 
 
 
 
 
Natural Gas
 
Dth
 
193

 
—

 
154

 
39

 
 
Electricity
 
MWh
 
291

 
—

 
291

 
—

 
 
Financial Transmission Rights (FTRs)
 
MWh
 
21

 
—

 
21

 
—

 
 
Interest Rate Swaps
 
U.S. Dollars
 
850

 
850

 
—

 
—

 
 
As of December 31, 2014
 
 
 
 
 
 
 
 
 
 
 
 
Natural Gas
 
Dth
 
274

 
—

 
216

 
58

 
 
Electricity
 
MWh
 
310

 
—

 
310

 
—

 
 
FTRs
 
MWh
 
15

 
—

 
15

 
—

 
 
Interest Rate Swaps
 
U.S. Dollars
 
850

 
850

 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Power [Member]  
Derivative Instruments and Hedging Activities Disclosures [Line Items]  
Schedule Providing Credit Risk From Others, Net Of Collateral
The following table provides information on Power’s credit risk from others, net of cash collateral, as of September 30, 2015. It further delineates that exposure by the credit rating of the counterparties and provides guidance on the concentration of credit risk to individual counterparties and an indication of the quality of Power’s credit risk by credit rating of the counterparties.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Rating
 
Current
Exposure
 
Securities
Held as
Collateral
 
Net
Exposure
 
Number of
Counterparties
>10%
 
Net Exposure of
Counterparties
>10%
 
 
 
 
 
Millions
 
 
 
Millions
 
 
 
Investment Grade—External Rating
 
$
348

 
$
118

 
$
230

 
2

 
$
127

(A) 
 
 
Non-Investment Grade—External Rating
 
1

 
—

 
1

 
—

 
—

  
 
 
Investment Grade—No External Rating
 
11

 
—

 
11

 
—

 
—

  
 
 
Non-Investment Grade—No External Rating
 
4

 
—

 
4

 
—

 
—

  
 
 
Total
 
$
364

 
$
118

 
$
246

 
2

 
$
127

  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

(A)
Represents net exposure of $87 million with PSE&G. The remaining net exposure of $40 million is with a non- affiliated power purchaser which is an investment grade counterparty.