Guarantees of Debt

6 Months Ended

Jun. 30, 2018

Power’s Senior Notes 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, 2018 and December 31, 2017 and for the three months and six months ended June 30, 2018 and 2017.




	Power			Guarantor Subsidiaries			Other Subsidiaries			Consolidating Adjustments			Total
	Millions
Three Months Ended June 30, 2018
Operating Revenues	$	—		$	747		$	51		$	(31	)	$	767
Operating Expenses	3			704			49			(31		)	725
Operating Income (Loss)	(3		)	43			2			—			42
Equity Earnings (Losses) of Subsidiaries	55			(4		)	5			(51		)	5
Net Gains (Losses) on Trust Investments	—			8			—			—			8
Other Income (Deductions)	41			40			—			(68		)	13
Non-Operating Pension and OPEB Credits (Costs)	—			2			1			—			3
Interest Expense	(54		)	(19		)	(6		)	68			(11		)
Income Tax Benefit (Expense)	2			(23		)	2			—			(19		)
Net Income (Loss)	$	41		$	47		$	4		$	(51	)	$	41
Comprehensive Income (Loss)	$	43		$	44		$	4		$	(48	)	$	43
Six Months Ended June 30, 2018
Operating Revenues	$	—		$	2,133		$	102		$	(65	)	$	2,170
Operating Expenses	3			1,760			101			(65		)	1,799
Operating Income (Loss)	(3		)	373			1			—			371
Equity Earnings (Losses) of Subsidiaries	289			(7		)	7			(282		)	7
Net Gains (Losses) on Trust Investments	—			(14		)	—			—			(14		)
Other Income (Deductions)	76			73			—			(125		)	24
Non-Operating Pension and OPEB Credits (Costs)	—			6			1			—			7
Interest Expense	(96		)	(36		)	(11		)	125			(18		)
Income Tax Benefit (Expense)	9			(115		)	4			—			(102		)
Net Income (Loss)	$	275		$	280		$	2		$	(282	)	$	275
Comprehensive Income (Loss)	$	272		$	267		$	2		$	(269	)	$	272
Six Months Ended June 30, 2018
Net Cash Provided By (Used In) Operating Activities	$	34		$	745		$	(8	)	$	98		$	869
Net Cash Provided By (Used In) Investing Activities	$	(840	)	$	(867	)	$	(196	)	$	808		$	(1,095	)
Net Cash Provided By (Used In) Financing Activities	$	806		$	123		$	191		$	(906	)	$	214




	Power			Guarantor Subsidiaries			Other Subsidiaries			Consolidating Adjustments			Total
	Millions
Three Months Ended June 30, 2017
Operating Revenues	$	—		$	899		$	47		$	(28	)	$	918
Operating Expenses	(2		)	1,094			43			(28		)	1,107
Operating Income (Loss)	2			(195		)	4			—			(189		)
Equity Earnings (Losses) of Subsidiaries	(93		)	(4		)	5			97			5
Net Gains (Losses) on Trust Investments	(1		)	25			—			—			24
Other Income (Deductions)	23			21			2			(34		)	12
Non-Operating Pension and OPEB Credits (Costs)	—			2			—			—			2
Interest Expense	(34		)	(9		)	(4		)	34			(13		)
Income Tax Benefit (Expense)	6			60			(4		)	—			62
Net Income (Loss)	$	(97	)	$	(100	)	$	3		$	97		$	(97	)
Comprehensive Income (Loss)	$	(82	)	$	(91	)	$	3		$	88		$	(82	)
Six Months Ended June 30, 2017
Operating Revenues	$	—		$	2,154		$	99		$	(66	)	$	2,187
Operating Expenses	2			2,650			95			(66		)	2,681
Operating Income (Loss)	(2		)	(496		)	4			—			(494		)
Equity Earnings (Losses) of Subsidiaries	(254		)	(5		)	8			259			8
Net Gains (Losses) on Trust Investments	3			40			—			—			43
Other Income (Deductions)	43			40			2			(62		)	23
Non-Operating Pension and OPEB Credits (Costs)	—			4			—			—			4
Interest Expense	(64		)	(18		)	(9		)	62			(29		)
Income Tax Benefit (Expense)	7			171			—			—			178
Net Income (Loss)	$	(267	)	$	(264	)	$	5		$	259		$	(267	)
Comprehensive Income (Loss)	$	(228	)	$	(234	)	$	5		$	229		$	(228	)
Three Months Ended June 30, 2017
Net Cash Provided By (Used In) Operating Activities	$	(32	)	$	802		$	111		$	51		$	932
Net Cash Provided By (Used In) Investing Activities	$	683		$	178		$	(241	)	$	(1,355	)	$	(735	)
Net Cash Provided By (Used In) Financing Activities	$	(651	)	$	(978	)	$	146		$	1,304		$	(179	)




	Power		Guarantor Subsidiaries		Other Subsidiaries		Consolidating Adjustments			Total
	Millions
As of June 30, 2018
Current Assets	$	4,806	$	1,411	$	216	$	(4,868	)	$	1,565
Property, Plant and Equipment, net	52		5,048		3,679		—			8,779
Investment in Subsidiaries	4,977		1,129		—		(6,106		)	—
Noncurrent Assets	243		2,258		110		(183		)	2,428
Total Assets	$	10,078	$	9,846	$	4,005	$	(11,157	)	$	12,772
Current Liabilities	$	690	$	3,164	$	1,987	$	(4,868	)	$	973
Noncurrent Liabilities	516		2,097		497		(183		)	2,927
Long-Term Debt	2,833		—		—		—			2,833
Member’s Equity	6,039		4,585		1,521		(6,106		)	6,039
Total Liabilities and Member’s Equity	$	10,078	$	9,846	$	4,005	$	(11,157	)	$	12,772
As of December 31, 2017
Current Assets	$	4,327	$	1,500	$	200	$	(4,686	)	$	1,341
Property, Plant and Equipment, net	54		5,778		2,764		—			8,596
Investment in Subsidiaries	4,844		404		—		(5,248		)	—
Noncurrent Assets	100		2,349		110		(78		)	2,481
Total Assets	$	9,325	$	10,031	$	3,074	$	(10,012	)	$	12,418
Current Liabilities	$	689	$	3,586	$	1,846	$	(4,686	)	$	1,435
Noncurrent Liabilities	533		1,966		459		(78		)	2,880
Long-Term Debt	2,136		—		—		—			2,136
Member’s Equity	5,967		4,479		769		(5,248		)	5,967
Total Liabilities and Member’s Equity	$	9,325	$	10,031	$	3,074	$	(10,012	)	$	12,418

Power [Member]

Debt Instrument [Line Items]

Guarantees of Debt




	Power			Guarantor Subsidiaries			Other Subsidiaries			Consolidating Adjustments			Total
	Millions
Three Months Ended June 30, 2018
Operating Revenues	$	—		$	747		$	51		$	(31	)	$	767
Operating Expenses	3			704			49			(31		)	725
Operating Income (Loss)	(3		)	43			2			—			42
Equity Earnings (Losses) of Subsidiaries	55			(4		)	5			(51		)	5
Net Gains (Losses) on Trust Investments	—			8			—			—			8
Other Income (Deductions)	41			40			—			(68		)	13
Non-Operating Pension and OPEB Credits (Costs)	—			2			1			—			3
Interest Expense	(54		)	(19		)	(6		)	68			(11		)
Income Tax Benefit (Expense)	2			(23		)	2			—			(19		)
Net Income (Loss)	$	41		$	47		$	4		$	(51	)	$	41
Comprehensive Income (Loss)	$	43		$	44		$	4		$	(48	)	$	43
Six Months Ended June 30, 2018
Operating Revenues	$	—		$	2,133		$	102		$	(65	)	$	2,170
Operating Expenses	3			1,760			101			(65		)	1,799
Operating Income (Loss)	(3		)	373			1			—			371
Equity Earnings (Losses) of Subsidiaries	289			(7		)	7			(282		)	7
Net Gains (Losses) on Trust Investments	—			(14		)	—			—			(14		)
Other Income (Deductions)	76			73			—			(125		)	24
Non-Operating Pension and OPEB Credits (Costs)	—			6			1			—			7
Interest Expense	(96		)	(36		)	(11		)	125			(18		)
Income Tax Benefit (Expense)	9			(115		)	4			—			(102		)
Net Income (Loss)	$	275		$	280		$	2		$	(282	)	$	275
Comprehensive Income (Loss)	$	272		$	267		$	2		$	(269	)	$	272
Six Months Ended June 30, 2018
Net Cash Provided By (Used In) Operating Activities	$	34		$	745		$	(8	)	$	98		$	869
Net Cash Provided By (Used In) Investing Activities	$	(840	)	$	(867	)	$	(196	)	$	808		$	(1,095	)
Net Cash Provided By (Used In) Financing Activities	$	806		$	123		$	191		$	(906	)	$	214




	Power			Guarantor Subsidiaries			Other Subsidiaries			Consolidating Adjustments			Total
	Millions
Three Months Ended June 30, 2017
Operating Revenues	$	—		$	899		$	47		$	(28	)	$	918
Operating Expenses	(2		)	1,094			43			(28		)	1,107
Operating Income (Loss)	2			(195		)	4			—			(189		)
Equity Earnings (Losses) of Subsidiaries	(93		)	(4		)	5			97			5
Net Gains (Losses) on Trust Investments	(1		)	25			—			—			24
Other Income (Deductions)	23			21			2			(34		)	12
Non-Operating Pension and OPEB Credits (Costs)	—			2			—			—			2
Interest Expense	(34		)	(9		)	(4		)	34			(13		)
Income Tax Benefit (Expense)	6			60			(4		)	—			62
Net Income (Loss)	$	(97	)	$	(100	)	$	3		$	97		$	(97	)
Comprehensive Income (Loss)	$	(82	)	$	(91	)	$	3		$	88		$	(82	)
Six Months Ended June 30, 2017
Operating Revenues	$	—		$	2,154		$	99		$	(66	)	$	2,187
Operating Expenses	2			2,650			95			(66		)	2,681
Operating Income (Loss)	(2		)	(496		)	4			—			(494		)
Equity Earnings (Losses) of Subsidiaries	(254		)	(5		)	8			259			8
Net Gains (Losses) on Trust Investments	3			40			—			—			43
Other Income (Deductions)	43			40			2			(62		)	23
Non-Operating Pension and OPEB Credits (Costs)	—			4			—			—			4
Interest Expense	(64		)	(18		)	(9		)	62			(29		)
Income Tax Benefit (Expense)	7			171			—			—			178
Net Income (Loss)	$	(267	)	$	(264	)	$	5		$	259		$	(267	)
Comprehensive Income (Loss)	$	(228	)	$	(234	)	$	5		$	229		$	(228	)
Three Months Ended June 30, 2017
Net Cash Provided By (Used In) Operating Activities	$	(32	)	$	802		$	111		$	51		$	932
Net Cash Provided By (Used In) Investing Activities	$	683		$	178		$	(241	)	$	(1,355	)	$	(735	)
Net Cash Provided By (Used In) Financing Activities	$	(651	)	$	(978	)	$	146		$	1,304		$	(179	)




	Power		Guarantor Subsidiaries		Other Subsidiaries		Consolidating Adjustments			Total
	Millions
As of June 30, 2018
Current Assets	$	4,806	$	1,411	$	216	$	(4,868	)	$	1,565
Property, Plant and Equipment, net	52		5,048		3,679		—			8,779
Investment in Subsidiaries	4,977		1,129		—		(6,106		)	—
Noncurrent Assets	243		2,258		110		(183		)	2,428
Total Assets	$	10,078	$	9,846	$	4,005	$	(11,157	)	$	12,772
Current Liabilities	$	690	$	3,164	$	1,987	$	(4,868	)	$	973
Noncurrent Liabilities	516		2,097		497		(183		)	2,927
Long-Term Debt	2,833		—		—		—			2,833
Member’s Equity	6,039		4,585		1,521		(6,106		)	6,039
Total Liabilities and Member’s Equity	$	10,078	$	9,846	$	4,005	$	(11,157	)	$	12,772
As of December 31, 2017
Current Assets	$	4,327	$	1,500	$	200	$	(4,686	)	$	1,341
Property, Plant and Equipment, net	54		5,778		2,764		—			8,596
Investment in Subsidiaries	4,844		404		—		(5,248		)	—
Noncurrent Assets	100		2,349		110		(78		)	2,481
Total Assets	$	9,325	$	10,031	$	3,074	$	(10,012	)	$	12,418
Current Liabilities	$	689	$	3,586	$	1,846	$	(4,686	)	$	1,435
Noncurrent Liabilities	533		1,966		459		(78		)	2,880
Long-Term Debt	2,136		—		—		—			2,136
Member’s Equity	5,967		4,479		769		(5,248		)	5,967
Total Liabilities and Member’s Equity	$	9,325	$	10,031	$	3,074	$	(10,012	)	$	12,418