Related-Party Transactions

6 Months Ended

Jun. 30, 2017

The following discussion relates to intercompany transactions, which are eliminated during the PSEG consolidation process in accordance with GAAP.

PSE&G

The financial statements for PSE&G include transactions with related parties as follows:




	Three Months Ended				Six Months Ended
	June 30,				June 30,
Related-Party Transactions	2017		2016		2017		2016
	Millions
Billings from Affiliates:
Net Billings from Power primarily through BGS and BGSS (A)	$	296	$	297	$	895	$	842
Administrative Billings from Services (B)	79		82		144		151
Total Billings from Affiliates	$	375	$	379	$	1,039	$	993




	As of		As of
Related-Party Transactions	June 30, 2017		December 31, 2016
	Millions
Receivables from PSEG (C)	$	20	$	76
Payable to Power (A)	$	90	$	193
Payable to Services (B)	56		67
Accounts Payable—Affiliated Companies	$	146	$	260
Working Capital Advances to Services (D)	$	33	$	33
Long-Term Accrued Taxes Payable	$	115	$	130

Power

The financial statements for Power include transactions with related parties as follows:




	Three Months Ended				Six Months Ended
	June 30,				June 30,
Related-Party Transactions	2017		2016		2017		2016
	Millions
Billings to Affiliates:
Net Billings to PSE&G primarily through BGS and BGSS (A)	$	296	$	297	$	895	$	842
Billings from Affiliates:
Administrative Billings from Services (B)	$	42	$	45	$	78	$	90




	As of		As of
Related-Party Transactions	June 30, 2017		December 31, 2016
	Millions
Receivables from PSE&G (A)	$	90	$	193
Receivables from PSEG (C)	49		12
Accounts Receivable—Affiliated Companies	$	139	$	205
Payable to Services (B)	$	20	$	25
Accounts Payable—Affiliated Companies	$	20	$	25
Short-Term Loan Due (to) from Affiliate (E)	$	233	$	87
Working Capital Advances to Services (D)	$	17	$	17
Long-Term Accrued Taxes Payable	$	93	$	77

(A)

PSE&G has entered into a requirements contract with Power under which Power provides the gas supply services needed to meet PSE&G’s BGSS and other contractual requirements. Power has also entered into contracts to supply energy, capacity and ancillary services to PSE&G through the BGS auction process. In addition, Power and PSE&G provide certain technical services for each other generally at cost in compliance with FERC and BPU affiliate rules.


(B)	Services provides and bills administrative services to PSE&G and Power at cost. In addition, PSE&G and Power have other payables to Services, including amounts related to certain common costs, such as pension and OPEB costs, which Services pays on behalf of each of the operating companies.

(C)

PSEG files a consolidated federal income tax return with its affiliated companies. A tax allocation agreement exists between PSEG and each of its affiliated companies. The general operation of these agreements is that the subsidiary company will compute its taxable income on a stand-alone basis. If the result is a net tax liability, such amount shall be paid to PSEG. If there are net operating losses and/or tax credits, the subsidiary shall receive payment for the tax savings from PSEG to the extent that PSEG is able to utilize those benefits.


(D)	PSE&G and Power have advanced working capital to Services. The amounts are included in Other Noncurrent Assets on PSE&G’s and Power’s Condensed Consolidated Balance Sheets.


(E)	Power’s short-term loans with PSEG are for working capital and other short-term needs. Interest Income and Interest Expense relating to these short-term funding activities were immaterial.

PSE And G [Member]

Related-Party Transactions

The following discussion relates to intercompany transactions, which are eliminated during the PSEG consolidation process in accordance with GAAP.

PSE&G

The financial statements for PSE&G include transactions with related parties as follows:




	Three Months Ended				Six Months Ended
	June 30,				June 30,
Related-Party Transactions	2017		2016		2017		2016
	Millions
Billings from Affiliates:
Net Billings from Power primarily through BGS and BGSS (A)	$	296	$	297	$	895	$	842
Administrative Billings from Services (B)	79		82		144		151
Total Billings from Affiliates	$	375	$	379	$	1,039	$	993




	As of		As of
Related-Party Transactions	June 30, 2017		December 31, 2016
	Millions
Receivables from PSEG (C)	$	20	$	76
Payable to Power (A)	$	90	$	193
Payable to Services (B)	56		67
Accounts Payable—Affiliated Companies	$	146	$	260
Working Capital Advances to Services (D)	$	33	$	33
Long-Term Accrued Taxes Payable	$	115	$	130

Power

The financial statements for Power include transactions with related parties as follows:




	Three Months Ended				Six Months Ended
	June 30,				June 30,
Related-Party Transactions	2017		2016		2017		2016
	Millions
Billings to Affiliates:
Net Billings to PSE&G primarily through BGS and BGSS (A)	$	296	$	297	$	895	$	842
Billings from Affiliates:
Administrative Billings from Services (B)	$	42	$	45	$	78	$	90




	As of		As of
Related-Party Transactions	June 30, 2017		December 31, 2016
	Millions
Receivables from PSE&G (A)	$	90	$	193
Receivables from PSEG (C)	49		12
Accounts Receivable—Affiliated Companies	$	139	$	205
Payable to Services (B)	$	20	$	25
Accounts Payable—Affiliated Companies	$	20	$	25
Short-Term Loan Due (to) from Affiliate (E)	$	233	$	87
Working Capital Advances to Services (D)	$	17	$	17
Long-Term Accrued Taxes Payable	$	93	$	77

(A)


(B)	Services provides and bills administrative services to PSE&G and Power at cost. In addition, PSE&G and Power have other payables to Services, including amounts related to certain common costs, such as pension and OPEB costs, which Services pays on behalf of each of the operating companies.

(C)


(D)	PSE&G and Power have advanced working capital to Services. The amounts are included in Other Noncurrent Assets on PSE&G’s and Power’s Condensed Consolidated Balance Sheets.


(E)	Power’s short-term loans with PSEG are for working capital and other short-term needs. Interest Income and Interest Expense relating to these short-term funding activities were immaterial.

Power [Member]

Related-Party Transactions

The following discussion relates to intercompany transactions, which are eliminated during the PSEG consolidation process in accordance with GAAP.

PSE&G

The financial statements for PSE&G include transactions with related parties as follows:




	Three Months Ended				Six Months Ended
	June 30,				June 30,
Related-Party Transactions	2017		2016		2017		2016
	Millions
Billings from Affiliates:
Net Billings from Power primarily through BGS and BGSS (A)	$	296	$	297	$	895	$	842
Administrative Billings from Services (B)	79		82		144		151
Total Billings from Affiliates	$	375	$	379	$	1,039	$	993




	As of		As of
Related-Party Transactions	June 30, 2017		December 31, 2016
	Millions
Receivables from PSEG (C)	$	20	$	76
Payable to Power (A)	$	90	$	193
Payable to Services (B)	56		67
Accounts Payable—Affiliated Companies	$	146	$	260
Working Capital Advances to Services (D)	$	33	$	33
Long-Term Accrued Taxes Payable	$	115	$	130

Power

The financial statements for Power include transactions with related parties as follows:




	Three Months Ended				Six Months Ended
	June 30,				June 30,
Related-Party Transactions	2017		2016		2017		2016
	Millions
Billings to Affiliates:
Net Billings to PSE&G primarily through BGS and BGSS (A)	$	296	$	297	$	895	$	842
Billings from Affiliates:
Administrative Billings from Services (B)	$	42	$	45	$	78	$	90




	As of		As of
Related-Party Transactions	June 30, 2017		December 31, 2016
	Millions
Receivables from PSE&G (A)	$	90	$	193
Receivables from PSEG (C)	49		12
Accounts Receivable—Affiliated Companies	$	139	$	205
Payable to Services (B)	$	20	$	25
Accounts Payable—Affiliated Companies	$	20	$	25
Short-Term Loan Due (to) from Affiliate (E)	$	233	$	87
Working Capital Advances to Services (D)	$	17	$	17
Long-Term Accrued Taxes Payable	$	93	$	77

(A)


(B)	Services provides and bills administrative services to PSE&G and Power at cost. In addition, PSE&G and Power have other payables to Services, including amounts related to certain common costs, such as pension and OPEB costs, which Services pays on behalf of each of the operating companies.

(C)


(D)	PSE&G and Power have advanced working capital to Services. The amounts are included in Other Noncurrent Assets on PSE&G’s and Power’s Condensed Consolidated Balance Sheets.


(E)	Power’s short-term loans with PSEG are for working capital and other short-term needs. Interest Income and Interest Expense relating to these short-term funding activities were immaterial.