Guarantees of Debt

6 Months Ended

Jun. 30, 2016

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, as of June 30, 2016 and December 31, 2015 and for the three months and six months ended June 30, 2016 and 2015.




	Power			Guarantor Subsidiaries			Other Subsidiaries			Consolidating Adjustments			Total
	Millions
Three Months Ended June 30, 2016
Operating Revenues	$	—		$	700		$	46		$	(32	)	$	714
Operating Expenses	2			716			40			(32		)	726
Operating Income (Loss)	(2		)	(16		)	6			—			(12		)
Equity Earnings (Losses) of Subsidiaries	(1		)	1			4			—			4
Other Income	17			30			—			(22		)	25
Other Deductions	—			(9		)	—			—			(9		)
Other-Than-Temporary Impairments	—			(10		)	—			—			(10		)
Interest Expense	(31		)	(7		)	(4		)	22			(20		)
Income Tax Benefit (Expense)	6			3			2			—			11
Net Income (Loss)	$	(11	)	$	(8	)	$	8		$	—		$	(11	)
Comprehensive Income (Loss)	$	5		$	1		$	8		$	(9	)	$	5
Six Months Ended June 30, 2016
Operating Revenues	$	—		$	2,002		$	88		$	(63	)	$	2,027
Operating Expenses	12			1,668			79			(63		)	1,696
Operating Income (Loss)	(12		)	334			9			—			331
Equity Earnings (Losses) of Subsidiaries	204			—			6			(204		)	6
Other Income	34			62			—			(45		)	51
Other Deductions	—			(27		)	—			—			(27		)
Other-Than-Temporary Impairments	—			(20		)	—			—			(20		)
Interest Expense	(61		)	(17		)	(9		)	45			(42		)
Income Tax Benefit (Expense)	16			(137		)	3			—			(118		)
Net Income (Loss)	$	181		$	195		$	9		$	(204	)	$	181
Comprehensive Income (Loss)	$	220		$	220		$	9		$	(229	)	$	220
Six Months Ended June 30, 2016
Net Cash Provided By (Used In) Operating Activities	$	337		$	777		$	159		$	(356	)	$	917
Net Cash Provided By (Used In) Investing Activities	$	(1,287	)	$	(504	)	$	(395	)	$	579		$	(1,607	)
Net Cash Provided By (Used In) Financing Activities	$	951		$	(273	)	$	239		$	(223	)	$	694




	Power			Guarantor Subsidiaries			Other Subsidiaries			Consolidating Adjustments			Total
	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			Total
	Millions
As of June 30, 2016
Current Assets	$	5,490	$	1,655	$	231	$	(4,828	)	$	2,548
Property, Plant and Equipment, net	58		6,476		1,944		—			8,478
Investment in Subsidiaries	4,419		345		—		(4,764		)	—
Noncurrent Assets	134		2,041		128		(51		)	2,252
Total Assets	$	10,101	$	10,517	$	2,303	$	(9,643	)	$	13,278
Current Liabilities	$	1,079	$	3,719	$	1,293	$	(4,828	)	$	1,263
Noncurrent Liabilities	420		2,652		392		(51		)	3,413
Long-Term Debt	2,380		—		—		—			2,380
Member's Equity	6,222		4,146		618		(4,764		)	6,222
Total Liabilities and Member's Equity	$	10,101	$	10,517	$	2,303	$	(9,643	)	$	13,278
As of December 31, 2015
Current Assets	$	4,501	$	1,912	$	364	$	(4,828	)	$	1,949
Property, Plant and Equipment, net	83		6,502		1,542		—			8,127
Investment in Subsidiaries	4,501		346		—		(4,847		)	—
Noncurrent Assets	155		1,959		136		(76		)	2,174
Total Assets	$	9,240	$	10,719	$	2,042	$	(9,751	)	$	12,250
Current Liabilities	$	1,112	$	3,866	$	1,076	$	(4,828	)	$	1,226
Noncurrent Liabilities	442		2,597		375		(76		)	3,338
Long-Term Debt	1,684		—		—		—			1,684
Member's Equity	6,002		4,256		591		(4,847		)	6,002
Total Liabilities and Member's Equity	$	9,240	$	10,719	$	2,042	$	(9,751	)	$	12,250

Power [Member]

Debt Instrument [Line Items]

Guarantees of Debt




	Power			Guarantor Subsidiaries			Other Subsidiaries			Consolidating Adjustments			Total
	Millions
Three Months Ended June 30, 2016
Operating Revenues	$	—		$	700		$	46		$	(32	)	$	714
Operating Expenses	2			716			40			(32		)	726
Operating Income (Loss)	(2		)	(16		)	6			—			(12		)
Equity Earnings (Losses) of Subsidiaries	(1		)	1			4			—			4
Other Income	17			30			—			(22		)	25
Other Deductions	—			(9		)	—			—			(9		)
Other-Than-Temporary Impairments	—			(10		)	—			—			(10		)
Interest Expense	(31		)	(7		)	(4		)	22			(20		)
Income Tax Benefit (Expense)	6			3			2			—			11
Net Income (Loss)	$	(11	)	$	(8	)	$	8		$	—		$	(11	)
Comprehensive Income (Loss)	$	5		$	1		$	8		$	(9	)	$	5
Six Months Ended June 30, 2016
Operating Revenues	$	—		$	2,002		$	88		$	(63	)	$	2,027
Operating Expenses	12			1,668			79			(63		)	1,696
Operating Income (Loss)	(12		)	334			9			—			331
Equity Earnings (Losses) of Subsidiaries	204			—			6			(204		)	6
Other Income	34			62			—			(45		)	51
Other Deductions	—			(27		)	—			—			(27		)
Other-Than-Temporary Impairments	—			(20		)	—			—			(20		)
Interest Expense	(61		)	(17		)	(9		)	45			(42		)
Income Tax Benefit (Expense)	16			(137		)	3			—			(118		)
Net Income (Loss)	$	181		$	195		$	9		$	(204	)	$	181
Comprehensive Income (Loss)	$	220		$	220		$	9		$	(229	)	$	220
Six Months Ended June 30, 2016
Net Cash Provided By (Used In) Operating Activities	$	337		$	777		$	159		$	(356	)	$	917
Net Cash Provided By (Used In) Investing Activities	$	(1,287	)	$	(504	)	$	(395	)	$	579		$	(1,607	)
Net Cash Provided By (Used In) Financing Activities	$	951		$	(273	)	$	239		$	(223	)	$	694




	Power			Guarantor Subsidiaries			Other Subsidiaries			Consolidating Adjustments			Total
	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			Total
	Millions
As of June 30, 2016
Current Assets	$	5,490	$	1,655	$	231	$	(4,828	)	$	2,548
Property, Plant and Equipment, net	58		6,476		1,944		—			8,478
Investment in Subsidiaries	4,419		345		—		(4,764		)	—
Noncurrent Assets	134		2,041		128		(51		)	2,252
Total Assets	$	10,101	$	10,517	$	2,303	$	(9,643	)	$	13,278
Current Liabilities	$	1,079	$	3,719	$	1,293	$	(4,828	)	$	1,263
Noncurrent Liabilities	420		2,652		392		(51		)	3,413
Long-Term Debt	2,380		—		—		—			2,380
Member's Equity	6,222		4,146		618		(4,764		)	6,222
Total Liabilities and Member's Equity	$	10,101	$	10,517	$	2,303	$	(9,643	)	$	13,278
As of December 31, 2015
Current Assets	$	4,501	$	1,912	$	364	$	(4,828	)	$	1,949
Property, Plant and Equipment, net	83		6,502		1,542		—			8,127
Investment in Subsidiaries	4,501		346		—		(4,847		)	—
Noncurrent Assets	155		1,959		136		(76		)	2,174
Total Assets	$	9,240	$	10,719	$	2,042	$	(9,751	)	$	12,250
Current Liabilities	$	1,112	$	3,866	$	1,076	$	(4,828	)	$	1,226
Noncurrent Liabilities	442		2,597		375		(76		)	3,338
Long-Term Debt	1,684		—		—		—			1,684
Member's Equity	6,002		4,256		591		(4,847		)	6,002
Total Liabilities and Member's Equity	$	9,240	$	10,719	$	2,042	$	(9,751	)	$	12,250