Pension and OPEB

3 Months Ended

Mar. 31, 2017

Defined Benefit Plan Disclosure [Line Items]

Pension and Other Postretirement Benefits (OPEB)

Pension and Other Postretirement Benefits (OPEB)

PSEG sponsors qualified and nonqualified pension plans and OPEB plans covering PSEG’s and its participating affiliates’ current and former employees who meet certain eligibility criteria.

As of December 31, 2016, PSEG merged its three qualified defined benefit pension plans (excluding Servco plans) into one plan, thereby also merging all of the pension plans’ assets. As a result, as of March 31, 2017, the total net periodic benefit costs decreased by approximately $12 million, net of amounts capitalized, as compared to the 2017 amounts that would have been recognized had the plans not been merged. This is due to the amortization period for gains and losses for the merged plan resulting in lower amortization than that of the individual plans. No changes were made to the benefit formulas, vesting provisions, or to the employees covered by the plans.

The following table provides the components of net periodic benefit costs relating to all qualified and nonqualified pension and OPEB plans on an aggregate basis for PSEG, except for Servco.

	Pension Benefits						OPEB
	Three Months Ended						Three Months Ended
	March 31,						March 31,
	2017			2016			2017			2016
	Millions
Components of Net Periodic Benefit Costs
Service Cost	$	29		$	27		$	4		$	4
Interest Cost	51			50			16			15
Expected Return on Plan Assets	(98		)	(98		)	(8		)	(8		)
Amortization of Net
Prior Service Cost (Credit)	(5		)	(4		)	(3		)	(3		)
Actuarial Loss	24			39			13			10
Total Benefit Costs	$	1		$	14		$	22		$	18

Pension and OPEB costs for PSE&G, Power and PSEG’s other subsidiaries, except for Servco, are detailed as follows:

	Pension Benefits					OPEB
	Three Months Ended					Three Months Ended
	March 31,					March 31,
	2017			2016		2017		2016
	Millions
PSE&G	$	(1	)	$	7	$	14	$	11
Power	—			4		7		6
Other	2			3		1		1
Total Benefit Costs	$	1		$	14	$	22	$	18

During the three months ended March 31, 2017, PSEG contributed its entire planned contribution for the year 2017 of $14 million into its OPEB plan.

Servco Pension and OPEB

At the direction of LIPA, Servco sponsors benefit plans that cover its current and former employees who meet certain eligibility criteria. Under the OSA, all of these and any future employee benefit costs are to be funded by LIPA. See Note 4. Variable Interest Entity. These obligations, as well as the offsetting long-term receivable, are separately presented on the Condensed Consolidated Balance Sheet of PSEG.

Servco amounts are not included in any of the preceding pension and OPEB benefit cost disclosures. Pension and OPEB costs of Servco are accounted for according to the OSA. Servco recognizes expenses for contributions to its pension plan trusts and for OPEB payments made to retirees. Operating Revenues are recognized for the reimbursement of these costs. Servco plans to contribute $35 million into its pension plan trusts during 2017. Servco’s pension-related revenues and costs were $9 million and $6 million for the three months ended March 31, 2017 and 2016, respectively. The OPEB-related revenues earned and costs incurred for the three months ended March 31, 2017 were $1 million and were immaterial for the three months ended March 31, 2016.

PSE And G [Member]

Defined Benefit Plan Disclosure [Line Items]

Pension and Other Postretirement Benefits (OPEB)

Pension and Other Postretirement Benefits (OPEB)

PSEG sponsors qualified and nonqualified pension plans and OPEB plans covering PSEG’s and its participating affiliates’ current and former employees who meet certain eligibility criteria.

As of December 31, 2016, PSEG merged its three qualified defined benefit pension plans (excluding Servco plans) into one plan, thereby also merging all of the pension plans’ assets. As a result, as of March 31, 2017, the total net periodic benefit costs decreased by approximately $12 million, net of amounts capitalized, as compared to the 2017 amounts that would have been recognized had the plans not been merged. This is due to the amortization period for gains and losses for the merged plan resulting in lower amortization than that of the individual plans. No changes were made to the benefit formulas, vesting provisions, or to the employees covered by the plans.

The following table provides the components of net periodic benefit costs relating to all qualified and nonqualified pension and OPEB plans on an aggregate basis for PSEG, except for Servco.

	Pension Benefits						OPEB
	Three Months Ended						Three Months Ended
	March 31,						March 31,
	2017			2016			2017			2016
	Millions
Components of Net Periodic Benefit Costs
Service Cost	$	29		$	27		$	4		$	4
Interest Cost	51			50			16			15
Expected Return on Plan Assets	(98		)	(98		)	(8		)	(8		)
Amortization of Net
Prior Service Cost (Credit)	(5		)	(4		)	(3		)	(3		)
Actuarial Loss	24			39			13			10
Total Benefit Costs	$	1		$	14		$	22		$	18

Pension and OPEB costs for PSE&G, Power and PSEG’s other subsidiaries, except for Servco, are detailed as follows:

	Pension Benefits					OPEB
	Three Months Ended					Three Months Ended
	March 31,					March 31,
	2017			2016		2017		2016
	Millions
PSE&G	$	(1	)	$	7	$	14	$	11
Power	—			4		7		6
Other	2			3		1		1
Total Benefit Costs	$	1		$	14	$	22	$	18

During the three months ended March 31, 2017, PSEG contributed its entire planned contribution for the year 2017 of $14 million into its OPEB plan.

Servco Pension and OPEB

At the direction of LIPA, Servco sponsors benefit plans that cover its current and former employees who meet certain eligibility criteria. Under the OSA, all of these and any future employee benefit costs are to be funded by LIPA. See Note 4. Variable Interest Entity. These obligations, as well as the offsetting long-term receivable, are separately presented on the Condensed Consolidated Balance Sheet of PSEG.

Servco amounts are not included in any of the preceding pension and OPEB benefit cost disclosures. Pension and OPEB costs of Servco are accounted for according to the OSA. Servco recognizes expenses for contributions to its pension plan trusts and for OPEB payments made to retirees. Operating Revenues are recognized for the reimbursement of these costs. Servco plans to contribute $35 million into its pension plan trusts during 2017. Servco’s pension-related revenues and costs were $9 million and $6 million for the three months ended March 31, 2017 and 2016, respectively. The OPEB-related revenues earned and costs incurred for the three months ended March 31, 2017 were $1 million and were immaterial for the three months ended March 31, 2016.

Power [Member]

Defined Benefit Plan Disclosure [Line Items]

Pension and Other Postretirement Benefits (OPEB)

Pension and Other Postretirement Benefits (OPEB)

PSEG sponsors qualified and nonqualified pension plans and OPEB plans covering PSEG’s and its participating affiliates’ current and former employees who meet certain eligibility criteria.

As of December 31, 2016, PSEG merged its three qualified defined benefit pension plans (excluding Servco plans) into one plan, thereby also merging all of the pension plans’ assets. As a result, as of March 31, 2017, the total net periodic benefit costs decreased by approximately $12 million, net of amounts capitalized, as compared to the 2017 amounts that would have been recognized had the plans not been merged. This is due to the amortization period for gains and losses for the merged plan resulting in lower amortization than that of the individual plans. No changes were made to the benefit formulas, vesting provisions, or to the employees covered by the plans.

The following table provides the components of net periodic benefit costs relating to all qualified and nonqualified pension and OPEB plans on an aggregate basis for PSEG, except for Servco.

	Pension Benefits						OPEB
	Three Months Ended						Three Months Ended
	March 31,						March 31,
	2017			2016			2017			2016
	Millions
Components of Net Periodic Benefit Costs
Service Cost	$	29		$	27		$	4		$	4
Interest Cost	51			50			16			15
Expected Return on Plan Assets	(98		)	(98		)	(8		)	(8		)
Amortization of Net
Prior Service Cost (Credit)	(5		)	(4		)	(3		)	(3		)
Actuarial Loss	24			39			13			10
Total Benefit Costs	$	1		$	14		$	22		$	18

Pension and OPEB costs for PSE&G, Power and PSEG’s other subsidiaries, except for Servco, are detailed as follows:

	Pension Benefits					OPEB
	Three Months Ended					Three Months Ended
	March 31,					March 31,
	2017			2016		2017		2016
	Millions
PSE&G	$	(1	)	$	7	$	14	$	11
Power	—			4		7		6
Other	2			3		1		1
Total Benefit Costs	$	1		$	14	$	22	$	18

During the three months ended March 31, 2017, PSEG contributed its entire planned contribution for the year 2017 of $14 million into its OPEB plan.

Servco Pension and OPEB

At the direction of LIPA, Servco sponsors benefit plans that cover its current and former employees who meet certain eligibility criteria. Under the OSA, all of these and any future employee benefit costs are to be funded by LIPA. See Note 4. Variable Interest Entity. These obligations, as well as the offsetting long-term receivable, are separately presented on the Condensed Consolidated Balance Sheet of PSEG.

Servco amounts are not included in any of the preceding pension and OPEB benefit cost disclosures. Pension and OPEB costs of Servco are accounted for according to the OSA. Servco recognizes expenses for contributions to its pension plan trusts and for OPEB payments made to retirees. Operating Revenues are recognized for the reimbursement of these costs. Servco plans to contribute $35 million into its pension plan trusts during 2017. Servco’s pension-related revenues and costs were $9 million and $6 million for the three months ended March 31, 2017 and 2016, respectively. The OPEB-related revenues earned and costs incurred for the three months ended March 31, 2017 were $1 million and were immaterial for the three months ended March 31, 2016.