Revenues Revenues

3 Months Ended

Mar. 31, 2018

Revenue from Contract with Customer [Text Block]

Revenues

Nature of Goods and Services

The following is a description of principal activities by reportable segment from which PSEG, PSE&G and Power generate their revenues.

PSE&G

Revenues from Contracts with Customers

Electric and Gas Distribution and Transmission Revenues—PSE&G sells gas and electricity to customers under default commodity supply tariffs. PSE&G’s regulated electric and gas default commodity supply and distribution services are separate tariffs which are satisfied as the product(s) and/or services are delivered to the customer. The electric and gas commodity and delivery tariffs are recurring contracts in effect until cancellation by the customer. Revenue is recognized over time as the service is rendered to the customer. Included in PSE&G’s regulated revenues are unbilled electric and gas revenues which represent the estimated amount customers will be billed for services rendered from the most recent meter reading to the end of the respective accounting period.

PSE&G’s transmission revenues are earned under a separate FERC tariff. The performance obligation of transmission service is satisfied over time as it is provided to and consumed by the customer. Revenue is recognized upon delivery of the transmission service. PSE&G’s revenues from the transmission of electricity are recorded based on a FERC-approved annual formula rate mechanism. This mechanism provides for an annual filing of an estimated revenue requirement with rates effective January 1 of each year and a mechanism true-up to that estimate based on actual revenue requirements. The true-up mechanism is an alternative revenue which is outside the scope of revenue from contracts with customers.

Other Revenues from Contracts with Customers

Other revenues from contracts with customers, which are not a material source of PSE&G revenues, are generated primarily from appliance repair services and solar generation projects. The performance obligations under these contracts are satisfied and revenue is recognized as control of products is delivered or services are rendered.

Payment for services rendered and products transferred are typically due within 30 days of month of delivery.

Revenues Unrelated to Contracts with Customers

Other PSE&G revenues unrelated to contracts with customers are derived from alternative revenue mechanisms recorded pursuant to regulatory accounting guidance. These revenues, which include weather normalization, green energy program true-ups and transmission formula rate true-ups, are not a material source of PSE&G revenues.

Power

Revenues from Contracts with Customers

Electricity and Related Products—Wholesale and retail load contracts are executed in the different Independent System Operator (ISO) regions for the bundled supply of energy, capacity, renewable energy credits (RECs) and ancillary services representing Power’s performance obligations. Revenue for these contracts is recognized over time as the bundled service is provided to the customer. Transaction terms generally run from several months to three years. Power also sells to the ISOs energy and ancillary services which are separately transacted in the day-ahead or real-time energy markets. The energy and ancillary services performance obligations are typically satisfied over time as delivered and revenue is recognized accordingly. Power generally reports electricity sales and purchases conducted with those individual ISOs net on an hourly basis in either Operating Revenues or Energy Costs in its Consolidated Statements of Operations. The classification depends on the net hourly activity.

Power enters into capacity sales and capacity purchases through the ISOs. The transactions are reported on a net basis dependent on Power’s monthly net sale or purchase position through the individual ISOs. The performance obligations with the ISOs are satisfied over time upon delivery of the capacity and revenue is recognized accordingly. In addition to capacity sold through the ISOs, Power sells capacity through bilateral contracts and the related revenue is recognized over time upon delivery of the capacity.

Gas Contracts—Power sells wholesale natural gas, primarily through an indexed based full requirements Basic Gas Supply Service (BGSS) contract with PSE&G to meet the gas supply requirements of PSE&G’s customers. The BGSS contract, which extends through March 2019, will renew year-to-year thereafter unless terminated by either party with a two year notice. The performance obligation is primarily delivery of gas which is satisfied over time. Revenue is recognized as gas is delivered. Based upon the availability of natural gas, storage and pipeline capacity beyond PSE&G’s daily needs, Power also sells gas and pipeline capacity to other counterparties under bilateral contracts. The performance obligation under these contracts is satisfied over time upon delivery of the gas or capacity, and revenue is recognized accordingly.

Other Revenues from Contracts with Customers

Power enters into bilateral contracts to sell solar power and solar RECs from its solar facilities. Contract terms range from 15 to 30 years. The performance obligations are generally solar power and RECs which are transferred to customers upon generation. Revenue is recognized upon generation of the solar power.

Power has entered into long-term contracts with LIPA for energy management and fuel procurement services. Revenue is recognized over time as services are rendered.

Revenues Unrelated to Contracts with Customers

Power’s revenues unrelated to contracts with customers include electric, gas and certain energy-related transactions accounted for in accordance with Derivatives and Hedging accounting guidance. See Note 12. Financial Risk Management Activities for further discussion. Power is also a party to solar contracts that qualify as leases and are accounted for in accordance with lease accounting guidance.

Other

Revenues from Contracts with Customers

PSEG LI has a contract with LIPA which generates revenues. PSEG LI’s subsidiary, Long Island Electric Utility Servco, LLC (Servco) records costs which are recovered from LIPA and records the recovery of those costs as revenues when Servco is a principal in the transaction.

Revenues Unrelated to Contracts with Customers

Energy Holdings generates lease revenues which are recorded pursuant to lease accounting guidance.

Disaggregation of Revenues




	PSE&G		Power		Other		Eliminations			Consolidated
	Millions
Three Months Ended March 31, 2018
Revenues from Contracts with Customers
Electric Distribution	$	690	$	—	$	—	$	—		$	690
Gas Distribution	759		—		—		(3		)	756
Transmission	312		—		—		—			312
Electricity and Related Product Sales
PJM
Third Party Sales	—		498		—		—			498
Sales to Affiliates	—		176		—		(176		)	—
New York ISO	—		59		—		—			59
ISO New England	—		47		—		—			47
Gas Sales
Third Party Sales	—		64		—		—			64
Sales to Affiliates	—		397		—		(397		)	—
Other Revenues from Contracts with Customers (A)	72		10		137		(1		)	218
Total Revenues from Contracts with Customers	1,833		1,251		137		(577		)	2,644
Revenues Unrelated to Contracts with Customers (B)	12		152		10		—			174
Total Operating Revenues	$	1,845	$	1,403	$	147	$	(577	)	$	2,818




	PSE&G		Power		Other			Eliminations			Consolidated
	Millions
Three Months Ended March 31, 2017
Revenues from Contracts with Customers
Electric Distribution	$	701	$	—	$	—		$	—		$	701
Gas Distribution	755		—		—			(1		)	754
Transmission	299		—		—			—			299
Electricity and Related Product Sales
PJM
Third Party Sales	—		314		—			—			314
Sales to Affiliates	—		184		—			(184		)	—
New York ISO	—		36		—			—			36
ISO New England	—		11		—			—			11
Gas Sales
Third Party Sales	—		52		—			—			52
Sales to Affiliates	—		401		—			(401		)	—
Other Revenues from Contracts with Customers (A)	62		10		128			(1		)	199
Total Revenues from Contracts with Customers	1,817		1,008		128			(587		)	2,366
Revenues Unrelated to Contracts with Customers (B)	9		261		(45		)	—			225
Total Operating Revenues	$	1,826	$	1,269	$	83		$	(587	)	$	2,591


(A)	Includes primarily revenues from appliance repair services at PSE&G, solar power projects and energy management and fuel service contracts with LIPA at Power, and PSEG LI’s OSA with LIPA in Other.


(B)	Includes primarily alternative revenues at PSE&G, derivative contracts at Power, and lease contracts in Other. In 2017, Other includes a $55 million loss related to Energy Holdings’ investments in leases.

Contract Balances

PSE&G

PSE&G does not have any material contract balances (rights to consideration for services already provided or obligations to provide services in the future for consideration already received) as of March 31, 2018 and 2017. Substantially all of PSE&G’s accounts receivable result from contracts with customers. Allowances represented approximately six percent and seven percent of accounts receivable as of March 31, 2018 and 2017, respectively.

Power

Power generally collects consideration upon satisfaction of performance obligations, and therefore, Power had no material contract balances as of March 31, 2018 and 2017.

Power’s accounts receivable include amounts resulting from contracts with customers and other contracts which are out of scope of accounting guidance for revenues from contracts with customers. The majority of these accounts receivable are subject to master netting agreements. As a result, accounts receivable resulting from contracts with customers and receivables unrelated to contracts with customers are netted within Accounts Receivable and Accounts Payable on the Condensed Consolidated Balance Sheets. In the wholesale energy markets in which Power operates, payment for services rendered and products transferred are typically due within 30 days of month of delivery. As such, there is little credit risk associated with these receivables and Power typically records no allowances.

Other

PSEG LI does not have any material contract balances as of March 31, 2018 and 2017.

Remaining Performance Obligations under Fixed Consideration Contracts

Power and PSE&G primarily record revenues as allowed by the guidance, which states that if an entity has a right to consideration from a customer in an amount that corresponds directly with the value to the customer of the entity's performance completed to date, the entity may recognize revenue in the amount to which the entity has a right to invoice. PSEG has future performance obligations under contracts with fixed consideration as follows:

Power

As stated above, capacity transactions with ISOs are reported on a net basis dependent on Power’s monthly net sale or purchase position through the individual ISOs.

Capacity Payments from the PJM RPM Annual Base Residual and Incremental Auctions—The Base Residual Auction is conducted annually three years in advance of the operating period. Power expects to realize the following average capacity prices for capacity obligations to be satisfied resulting from the base and incremental auctions which have been completed:




Delivery Year	$ per MW-Day	MW Cleared
June 2017 to May 2018	$171	9,700
June 2018 to May 2019	$205	9,200
June 2019 to May 2020	$116	8,900
June 2020 to May 2021	$174	7,800

Capacity Payments from the New England ISO Forward Capacity Market—The Forward Capacity Market Auction is conducted annually three years in advance of the operating period. Power expects to realize the following average capacity prices through May 2022 for capacity obligations to be satisfied resulting from the Forward Capacity Market auctions which have been completed:




Delivery Year	$ per MW-Day	MW Cleared
June 2017 to May 2018	$231	850
June 2018 to May 2019	$314	830
June 2019 to May 2020	$231	850
June 2020 to May 2021	$174	850
June 2021 to May 2022	$152	460

In addition to the capacity listed in the table above, Power expects to realize payments for capacity obligations of approximately 480 MW at $231/MW-day, adjusted annually, from 2019 to 2026 at the Bridgeport Harbor Station Unit 5.

Bilateral capacity contracts—Capacity obligations pursuant to contract terms through 2029 are anticipated to result in revenues totaling $180 million.

Other

The LIPA OSA is a 12-year services contract ending in 2025 with an annual fixed component. The fixed fee for the provision of services thereunder in 2018 is $64 million and will increase each year based on the change in the Consumer Price Index.

PSE And G [Member]

Revenue from Contract with Customer [Text Block]

Revenues

Nature of Goods and Services

The following is a description of principal activities by reportable segment from which PSEG, PSE&G and Power generate their revenues.

PSE&G

Revenues from Contracts with Customers

Other Revenues from Contracts with Customers

Payment for services rendered and products transferred are typically due within 30 days of month of delivery.

Revenues Unrelated to Contracts with Customers

Power

Revenues from Contracts with Customers

Other Revenues from Contracts with Customers

Power has entered into long-term contracts with LIPA for energy management and fuel procurement services. Revenue is recognized over time as services are rendered.

Revenues Unrelated to Contracts with Customers

Other

Revenues from Contracts with Customers

Revenues Unrelated to Contracts with Customers

Energy Holdings generates lease revenues which are recorded pursuant to lease accounting guidance.

Disaggregation of Revenues




	PSE&G		Power		Other		Eliminations			Consolidated
	Millions
Three Months Ended March 31, 2018
Revenues from Contracts with Customers
Electric Distribution	$	690	$	—	$	—	$	—		$	690
Gas Distribution	759		—		—		(3		)	756
Transmission	312		—		—		—			312
Electricity and Related Product Sales
PJM
Third Party Sales	—		498		—		—			498
Sales to Affiliates	—		176		—		(176		)	—
New York ISO	—		59		—		—			59
ISO New England	—		47		—		—			47
Gas Sales
Third Party Sales	—		64		—		—			64
Sales to Affiliates	—		397		—		(397		)	—
Other Revenues from Contracts with Customers (A)	72		10		137		(1		)	218
Total Revenues from Contracts with Customers	1,833		1,251		137		(577		)	2,644
Revenues Unrelated to Contracts with Customers (B)	12		152		10		—			174
Total Operating Revenues	$	1,845	$	1,403	$	147	$	(577	)	$	2,818




	PSE&G		Power		Other			Eliminations			Consolidated
	Millions
Three Months Ended March 31, 2017
Revenues from Contracts with Customers
Electric Distribution	$	701	$	—	$	—		$	—		$	701
Gas Distribution	755		—		—			(1		)	754
Transmission	299		—		—			—			299
Electricity and Related Product Sales
PJM
Third Party Sales	—		314		—			—			314
Sales to Affiliates	—		184		—			(184		)	—
New York ISO	—		36		—			—			36
ISO New England	—		11		—			—			11
Gas Sales
Third Party Sales	—		52		—			—			52
Sales to Affiliates	—		401		—			(401		)	—
Other Revenues from Contracts with Customers (A)	62		10		128			(1		)	199
Total Revenues from Contracts with Customers	1,817		1,008		128			(587		)	2,366
Revenues Unrelated to Contracts with Customers (B)	9		261		(45		)	—			225
Total Operating Revenues	$	1,826	$	1,269	$	83		$	(587	)	$	2,591


(A)	Includes primarily revenues from appliance repair services at PSE&G, solar power projects and energy management and fuel service contracts with LIPA at Power, and PSEG LI’s OSA with LIPA in Other.


(B)	Includes primarily alternative revenues at PSE&G, derivative contracts at Power, and lease contracts in Other. In 2017, Other includes a $55 million loss related to Energy Holdings’ investments in leases.

Contract Balances

PSE&G

Power

Power generally collects consideration upon satisfaction of performance obligations, and therefore, Power had no material contract balances as of March 31, 2018 and 2017.

Other

PSEG LI does not have any material contract balances as of March 31, 2018 and 2017.

Remaining Performance Obligations under Fixed Consideration Contracts

Power

As stated above, capacity transactions with ISOs are reported on a net basis dependent on Power’s monthly net sale or purchase position through the individual ISOs.




Delivery Year	$ per MW-Day	MW Cleared
June 2017 to May 2018	$171	9,700
June 2018 to May 2019	$205	9,200
June 2019 to May 2020	$116	8,900
June 2020 to May 2021	$174	7,800




Delivery Year	$ per MW-Day	MW Cleared
June 2017 to May 2018	$231	850
June 2018 to May 2019	$314	830
June 2019 to May 2020	$231	850
June 2020 to May 2021	$174	850
June 2021 to May 2022	$152	460

Bilateral capacity contracts—Capacity obligations pursuant to contract terms through 2029 are anticipated to result in revenues totaling $180 million.

Other

Power [Member]

Revenue from Contract with Customer [Text Block]

Revenues

Nature of Goods and Services

The following is a description of principal activities by reportable segment from which PSEG, PSE&G and Power generate their revenues.

PSE&G

Revenues from Contracts with Customers

Other Revenues from Contracts with Customers

Payment for services rendered and products transferred are typically due within 30 days of month of delivery.

Revenues Unrelated to Contracts with Customers

Power

Revenues from Contracts with Customers

Other Revenues from Contracts with Customers

Power has entered into long-term contracts with LIPA for energy management and fuel procurement services. Revenue is recognized over time as services are rendered.

Revenues Unrelated to Contracts with Customers

Other

Revenues from Contracts with Customers

Revenues Unrelated to Contracts with Customers

Energy Holdings generates lease revenues which are recorded pursuant to lease accounting guidance.

Disaggregation of Revenues




	PSE&G		Power		Other		Eliminations			Consolidated
	Millions
Three Months Ended March 31, 2018
Revenues from Contracts with Customers
Electric Distribution	$	690	$	—	$	—	$	—		$	690
Gas Distribution	759		—		—		(3		)	756
Transmission	312		—		—		—			312
Electricity and Related Product Sales
PJM
Third Party Sales	—		498		—		—			498
Sales to Affiliates	—		176		—		(176		)	—
New York ISO	—		59		—		—			59
ISO New England	—		47		—		—			47
Gas Sales
Third Party Sales	—		64		—		—			64
Sales to Affiliates	—		397		—		(397		)	—
Other Revenues from Contracts with Customers (A)	72		10		137		(1		)	218
Total Revenues from Contracts with Customers	1,833		1,251		137		(577		)	2,644
Revenues Unrelated to Contracts with Customers (B)	12		152		10		—			174
Total Operating Revenues	$	1,845	$	1,403	$	147	$	(577	)	$	2,818




	PSE&G		Power		Other			Eliminations			Consolidated
	Millions
Three Months Ended March 31, 2017
Revenues from Contracts with Customers
Electric Distribution	$	701	$	—	$	—		$	—		$	701
Gas Distribution	755		—		—			(1		)	754
Transmission	299		—		—			—			299
Electricity and Related Product Sales
PJM
Third Party Sales	—		314		—			—			314
Sales to Affiliates	—		184		—			(184		)	—
New York ISO	—		36		—			—			36
ISO New England	—		11		—			—			11
Gas Sales
Third Party Sales	—		52		—			—			52
Sales to Affiliates	—		401		—			(401		)	—
Other Revenues from Contracts with Customers (A)	62		10		128			(1		)	199
Total Revenues from Contracts with Customers	1,817		1,008		128			(587		)	2,366
Revenues Unrelated to Contracts with Customers (B)	9		261		(45		)	—			225
Total Operating Revenues	$	1,826	$	1,269	$	83		$	(587	)	$	2,591


(A)	Includes primarily revenues from appliance repair services at PSE&G, solar power projects and energy management and fuel service contracts with LIPA at Power, and PSEG LI’s OSA with LIPA in Other.


(B)	Includes primarily alternative revenues at PSE&G, derivative contracts at Power, and lease contracts in Other. In 2017, Other includes a $55 million loss related to Energy Holdings’ investments in leases.

Contract Balances

PSE&G

Power

Power generally collects consideration upon satisfaction of performance obligations, and therefore, Power had no material contract balances as of March 31, 2018 and 2017.

Other

PSEG LI does not have any material contract balances as of March 31, 2018 and 2017.

Remaining Performance Obligations under Fixed Consideration Contracts

Power

As stated above, capacity transactions with ISOs are reported on a net basis dependent on Power’s monthly net sale or purchase position through the individual ISOs.




Delivery Year	$ per MW-Day	MW Cleared
June 2017 to May 2018	$171	9,700
June 2018 to May 2019	$205	9,200
June 2019 to May 2020	$116	8,900
June 2020 to May 2021	$174	7,800




Delivery Year	$ per MW-Day	MW Cleared
June 2017 to May 2018	$231	850
June 2018 to May 2019	$314	830
June 2019 to May 2020	$231	850
June 2020 to May 2021	$174	850
June 2021 to May 2022	$152	460

Bilateral capacity contracts—Capacity obligations pursuant to contract terms through 2029 are anticipated to result in revenues totaling $180 million.

Other