Guarantees of Debt

9 Months Ended

Sep. 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 September 30, 2016 and December 31, 2015 and for the three months and nine months ended September 30, 2016 and 2015.




	Power			Guarantor Subsidiaries			Other Subsidiaries			Consolidating Adjustments			Total
	Millions
Three Months Ended September 30, 2016
Operating Revenues	$	—		$	1,059		$	43		$	(27	)	$	1,075
Operating Expenses	(2		)	826			40			(27		)	837
Operating Income (Loss)	2			233			3			—			238
Equity Earnings (Losses) of Subsidiaries	143			(1		)	3			(142		)	3
Other Income	18			26			—			(21		)	23
Other Deductions	(2		)	(4		)	—			—			(6		)
Other-Than-Temporary Impairments	—			(5		)	—			—			(5		)
Interest Expense	(30		)	(12		)	(3		)	21			(24		)
Income Tax Benefit (Expense)	8			(97		)	(1		)	—			(90		)
Net Income (Loss)	$	139		$	140		$	2		$	(142	)	$	139
Comprehensive Income (Loss)	$	168		$	161		$	2		$	(163	)	$	168
Nine Months Ended September 30, 2016
Operating Revenues	$	—		$	3,061		$	131		$	(90	)	$	3,102
Operating Expenses	10			2,494			119			(90		)	2,533
Operating Income (Loss)	(10		)	567			12			—			569
Equity Earnings (Losses) of Subsidiaries	347			(1		)	9			(346		)	9
Other Income	52			88			—			(66		)	74
Other Deductions	(2		)	(31		)	—			—			(33		)
Other-Than-Temporary Impairments	—			(25		)	—			—			(25		)
Interest Expense	(91		)	(29		)	(12		)	66			(66		)
Income Tax Benefit (Expense)	24			(234		)	2			—			(208		)
Net Income (Loss)	$	320		$	335		$	11		$	(346	)	$	320
Comprehensive Income (Loss)	$	388		$	381		$	11		$	(392	)	$	388
Nine Months Ended September 30, 2016
Net Cash Provided By (Used In) Operating Activities	$	175		$	1,261		$	234		$	(410	)	$	1,260
Net Cash Provided By (Used In) Investing Activities	$	(588	)	$	(1,166	)	$	(549	)	$	1,152		$	(1,151	)
Net Cash Provided By (Used In) Financing Activities	$	413		$	(95	)	$	315		$	(742	)	$	(109	)




	Power			Guarantor Subsidiaries			Other Subsidiaries			Consolidating Adjustments			Total
	Millions
Three Months Ended September 30, 2015
Operating Revenues	$	—		$	1,084		$	37		$	(25	)	$	1,096
Operating Expenses	3			692			35			(25		)	705
Operating Income (Loss)	(3		)	392			2			—			391
Equity Earnings (Losses) of Subsidiaries	220			(2		)	3			(218		)	3
Other Income	10			26			—			(11		)	25
Other Deductions	—			(14		)	—			—			(14		)
Other-Than-Temporary Impairments	—			(30		)	—			—			(30		)
Interest Expense	(28		)	(8		)	(5		)	11			(30		)
Income Tax Benefit (Expense)	7			(148		)	2			—			(139		)
Net Income (Loss)	$	206		$	216		$	2		$	(218	)	$	206
Comprehensive Income (Loss)	$	184		$	187		$	2		$	(189	)	$	184
Nine Months Ended September 30, 2015
Operating Revenues	$	—		$	3,811		$	144		$	(109	)	$	3,846
Operating Expenses	7			2,610			135			(109		)	2,643
Operating Income (Loss)	(7		)	1,201			9			—			1,203
Equity Earnings (Losses) of Subsidiaries	755			(4		)	11			(751		)	11
Other Income	33			111			—			(35		)	109
Other Deductions	(1		)	(31		)	—			—			(32		)
Other-Than-Temporary Impairments	—			(45		)	—			—			(45		)
Interest Expense	(90		)	(24		)	(15		)	35			(94		)
Income Tax Benefit (Expense)	17			(463		)	1			—			(445		)
Net Income (Loss)	$	707		$	745		$	6		$	(751	)	$	707
Comprehensive Income (Loss)	$	690		$	707		$	6		$	(713	)	$	690
Nine Months Ended September 30, 2015
Net Cash Provided By (Used In) Operating Activities	$	435		$	1,826		$	66		$	(769	)	$	1,558
Net Cash Provided By (Used In) Investing Activities	$	(656	)	$	(1,382	)	$	(303	)	$	1,191		$	(1,150	)
Net Cash Provided By (Used In) Financing Activities	$	221		$	(446	)	$	245		$	(422	)	$	(402	)




	Power		Guarantor Subsidiaries		Other Subsidiaries		Consolidating Adjustments			Total
	Millions
As of September 30, 2016
Current Assets	$	4,889	$	1,845	$	287	$	(5,262	)	$	1,759
Property, Plant and Equipment, net	57		6,570		2,080		—			8,707
Investment in Subsidiaries	4,709		483		—		(5,192		)	—
Noncurrent Assets	157		2,140		123		(76		)	2,344
Total Assets	$	9,812	$	11,038	$	2,490	$	(10,530	)	$	12,810
Current Liabilities	$	818	$	3,888	$	1,350	$	(5,262	)	$	794
Noncurrent Liabilities	473		2,704		394		(76		)	3,495
Long-Term Debt	2,381		—		—		—			2,381
Member’s Equity	6,140		4,446		746		(5,192		)	6,140
Total Liabilities and Member’s Equity	$	9,812	$	11,038	$	2,490	$	(10,530	)	$	12,810
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 September 30, 2016
Operating Revenues	$	—		$	1,059		$	43		$	(27	)	$	1,075
Operating Expenses	(2		)	826			40			(27		)	837
Operating Income (Loss)	2			233			3			—			238
Equity Earnings (Losses) of Subsidiaries	143			(1		)	3			(142		)	3
Other Income	18			26			—			(21		)	23
Other Deductions	(2		)	(4		)	—			—			(6		)
Other-Than-Temporary Impairments	—			(5		)	—			—			(5		)
Interest Expense	(30		)	(12		)	(3		)	21			(24		)
Income Tax Benefit (Expense)	8			(97		)	(1		)	—			(90		)
Net Income (Loss)	$	139		$	140		$	2		$	(142	)	$	139
Comprehensive Income (Loss)	$	168		$	161		$	2		$	(163	)	$	168
Nine Months Ended September 30, 2016
Operating Revenues	$	—		$	3,061		$	131		$	(90	)	$	3,102
Operating Expenses	10			2,494			119			(90		)	2,533
Operating Income (Loss)	(10		)	567			12			—			569
Equity Earnings (Losses) of Subsidiaries	347			(1		)	9			(346		)	9
Other Income	52			88			—			(66		)	74
Other Deductions	(2		)	(31		)	—			—			(33		)
Other-Than-Temporary Impairments	—			(25		)	—			—			(25		)
Interest Expense	(91		)	(29		)	(12		)	66			(66		)
Income Tax Benefit (Expense)	24			(234		)	2			—			(208		)
Net Income (Loss)	$	320		$	335		$	11		$	(346	)	$	320
Comprehensive Income (Loss)	$	388		$	381		$	11		$	(392	)	$	388
Nine Months Ended September 30, 2016
Net Cash Provided By (Used In) Operating Activities	$	175		$	1,261		$	234		$	(410	)	$	1,260
Net Cash Provided By (Used In) Investing Activities	$	(588	)	$	(1,166	)	$	(549	)	$	1,152		$	(1,151	)
Net Cash Provided By (Used In) Financing Activities	$	413		$	(95	)	$	315		$	(742	)	$	(109	)




	Power			Guarantor Subsidiaries			Other Subsidiaries			Consolidating Adjustments			Total
	Millions
Three Months Ended September 30, 2015
Operating Revenues	$	—		$	1,084		$	37		$	(25	)	$	1,096
Operating Expenses	3			692			35			(25		)	705
Operating Income (Loss)	(3		)	392			2			—			391
Equity Earnings (Losses) of Subsidiaries	220			(2		)	3			(218		)	3
Other Income	10			26			—			(11		)	25
Other Deductions	—			(14		)	—			—			(14		)
Other-Than-Temporary Impairments	—			(30		)	—			—			(30		)
Interest Expense	(28		)	(8		)	(5		)	11			(30		)
Income Tax Benefit (Expense)	7			(148		)	2			—			(139		)
Net Income (Loss)	$	206		$	216		$	2		$	(218	)	$	206
Comprehensive Income (Loss)	$	184		$	187		$	2		$	(189	)	$	184
Nine Months Ended September 30, 2015
Operating Revenues	$	—		$	3,811		$	144		$	(109	)	$	3,846
Operating Expenses	7			2,610			135			(109		)	2,643
Operating Income (Loss)	(7		)	1,201			9			—			1,203
Equity Earnings (Losses) of Subsidiaries	755			(4		)	11			(751		)	11
Other Income	33			111			—			(35		)	109
Other Deductions	(1		)	(31		)	—			—			(32		)
Other-Than-Temporary Impairments	—			(45		)	—			—			(45		)
Interest Expense	(90		)	(24		)	(15		)	35			(94		)
Income Tax Benefit (Expense)	17			(463		)	1			—			(445		)
Net Income (Loss)	$	707		$	745		$	6		$	(751	)	$	707
Comprehensive Income (Loss)	$	690		$	707		$	6		$	(713	)	$	690
Nine Months Ended September 30, 2015
Net Cash Provided By (Used In) Operating Activities	$	435		$	1,826		$	66		$	(769	)	$	1,558
Net Cash Provided By (Used In) Investing Activities	$	(656	)	$	(1,382	)	$	(303	)	$	1,191		$	(1,150	)
Net Cash Provided By (Used In) Financing Activities	$	221		$	(446	)	$	245		$	(422	)	$	(402	)




	Power		Guarantor Subsidiaries		Other Subsidiaries		Consolidating Adjustments			Total
	Millions
As of September 30, 2016
Current Assets	$	4,889	$	1,845	$	287	$	(5,262	)	$	1,759
Property, Plant and Equipment, net	57		6,570		2,080		—			8,707
Investment in Subsidiaries	4,709		483		—		(5,192		)	—
Noncurrent Assets	157		2,140		123		(76		)	2,344
Total Assets	$	9,812	$	11,038	$	2,490	$	(10,530	)	$	12,810
Current Liabilities	$	818	$	3,888	$	1,350	$	(5,262	)	$	794
Noncurrent Liabilities	473		2,704		394		(76		)	3,495
Long-Term Debt	2,381		—		—		—			2,381
Member’s Equity	6,140		4,446		746		(5,192		)	6,140
Total Liabilities and Member’s Equity	$	9,812	$	11,038	$	2,490	$	(10,530	)	$	12,810
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