Guarantees of Debt

9 Months Ended

Sep. 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 September 30, 2018 and December 31, 2017 and for the three months and nine months ended September 30, 2018 and 2017.




	Power			Guarantor Subsidiaries			Other Subsidiaries			Consolidating Adjustments			Total
	Millions
Three Months Ended September 30, 2018
Operating Revenues	$	—		$	849		$	59		$	(40	)	$	868
Operating Expenses	2			733			61			(40		)	756
Operating Income (Loss)	(2		)	116			(2		)	—			112
Equity Earnings (Losses) of Subsidiaries	117			(7		)	5			(110		)	5
Net Gains (Losses) on Trust Investments	—			45			(1		)	—			44
Other Income (Deductions)	40			45			—			(71		)	14
Non-Operating Pension and OPEB Credits (Costs)	—			4			—			—			4
Interest Expense	(65		)	(28		)	(7		)	71			(29		)
Income Tax Benefit (Expense)	35			(64		)	4			—			(25		)
Net Income (Loss)	$	125		$	111		$	(1	)	$	(110	)	$	125
Comprehensive Income (Loss)	$	128		$	107		$	(1	)	$	(106	)	$	128
Nine Months Ended September 30, 2018
Operating Revenues	$	—		$	2,982		$	161		$	(105	)	$	3,038
Operating Expenses	5			2,493			162			(105		)	2,555
Operating Income (Loss)	(5		)	489			(1		)	—			483
Equity Earnings (Losses) of Subsidiaries	406			(14		)	12			(392		)	12
Net Gains (Losses) on Trust Investments	—			31			(1		)	—			30
Other Income (Deductions)	116			118			—			(196		)	38
Non-Operating Pension and OPEB Credits (Costs)	—			10			1			—			11
Interest Expense	(161		)	(64		)	(18		)	196			(47		)
Income Tax Benefit (Expense)	44			(179		)	8			—			(127		)
Net Income (Loss)	$	400		$	391		$	1		$	(392	)	$	400
Comprehensive Income (Loss)	$	400		$	374		$	1		$	(375	)	$	400
Nine Months Ended September 30, 2018
Net Cash Provided By (Used In) Operating Activities	$	(255	)	$	1,169		$	(26	)	$	117		$	1,005
Net Cash Provided By (Used In) Investing Activities	$	(417	)	$	(1,132	)	$	(290	)	$	829		$	(1,010	)
Net Cash Provided By (Used In) Financing Activities	$	672		$	(32	)	$	320		$	(946	)	$	14




	Power			Guarantor Subsidiaries			Other Subsidiaries			Consolidating Adjustments			Total
	Millions
Three Months Ended September 30, 2017
Operating Revenues	$	—		$	829		$	46		$	(29	)	$	846
Operating Expenses	2			618			44			(29		)	635
Operating Income (Loss)	(2		)	211			2			—			211
Equity Earnings (Losses) of Subsidiaries	143			(3		)	3			(140		)	3
Net Gains (Losses) on Trust Investments	—			19			—			—			19
Other Income (Deductions)	24			26			(2		)	(37		)	11
Non-Operating Pension and OPEB Credits (Costs)	—			2			—			—			2
Interest Expense	(32		)	(12		)	(5		)	37			(12		)
Income Tax Benefit (Expense)	3			(103		)	2			—			(98		)
Net Income (Loss)	$	136		$	140		$	—		$	(140	)	$	136
Comprehensive Income (Loss)	$	156		$	154		$	—		$	(154	)	$	156
Nine Months Ended September 30, 2017
Operating Revenues	$	—		$	2,983		$	145		$	(95	)	$	3,033
Operating Expenses	4			3,268			139			(95		)	3,316
Operating Income (Loss)	(4		)	(285		)	6			—			(283		)
Equity Earnings (Losses) of Subsidiaries	(111		)	(8		)	11			119			11
Net Gains (Losses) on Trust Investments	3			59			—			—			62
Other Income (Deductions)	67			66			—			(99		)	34
Non-Operating Pension and OPEB Credits (Costs)	—			6			—			—			6
Interest Expense	(96		)	(30		)	(14		)	99			(41		)
Income Tax Benefit (Expense)	10			68			2			—			80
Net Income (Loss)	$	(131	)	$	(124	)	$	5		$	119		$	(131	)
Comprehensive Income (Loss)	$	(72	)	$	(80	)	$	5		$	75		$	(72	)
Nine Months Ended September 30, 2017
Net Cash Provided By (Used In) Operating Activities	$	(55	)	$	1,159		$	142		$	3		$	1,249
Net Cash Provided By (Used In) Investing Activities	$	738		$	(289	)	$	(343	)	$	(990	)	$	(884	)
Net Cash Provided By (Used In) Financing Activities	$	(683	)	$	(869	)	$	211		$	987		$	(354	)




	Power		Guarantor Subsidiaries		Other Subsidiaries		Consolidating Adjustments			Total
	Millions
As of September 30, 2018
Current Assets	$	4,497	$	1,353	$	302	$	(4,776	)	$	1,376
Property, Plant and Equipment, net	55		5,074		3,740		—			8,869
Investment in Subsidiaries	5,086		1,124		—		(6,210		)	—
Noncurrent Assets	245		2,302		106		(217		)	2,436
Total Assets	$	9,883	$	9,853	$	4,148	$	(11,203	)	$	12,681
Current Liabilities	$	616	$	3,030	$	1,999	$	(4,776	)	$	869
Noncurrent Liabilities	466		2,129		633		(217		)	3,011
Long-Term Debt	2,834		—		—		—			2,834
Member’s Equity	5,967		4,694		1,516		(6,210		)	5,967
Total Liabilities and Member’s Equity	$	9,883	$	9,853	$	4,148	$	(11,203	)	$	12,681
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 September 30, 2018
Operating Revenues	$	—		$	849		$	59		$	(40	)	$	868
Operating Expenses	2			733			61			(40		)	756
Operating Income (Loss)	(2		)	116			(2		)	—			112
Equity Earnings (Losses) of Subsidiaries	117			(7		)	5			(110		)	5
Net Gains (Losses) on Trust Investments	—			45			(1		)	—			44
Other Income (Deductions)	40			45			—			(71		)	14
Non-Operating Pension and OPEB Credits (Costs)	—			4			—			—			4
Interest Expense	(65		)	(28		)	(7		)	71			(29		)
Income Tax Benefit (Expense)	35			(64		)	4			—			(25		)
Net Income (Loss)	$	125		$	111		$	(1	)	$	(110	)	$	125
Comprehensive Income (Loss)	$	128		$	107		$	(1	)	$	(106	)	$	128
Nine Months Ended September 30, 2018
Operating Revenues	$	—		$	2,982		$	161		$	(105	)	$	3,038
Operating Expenses	5			2,493			162			(105		)	2,555
Operating Income (Loss)	(5		)	489			(1		)	—			483
Equity Earnings (Losses) of Subsidiaries	406			(14		)	12			(392		)	12
Net Gains (Losses) on Trust Investments	—			31			(1		)	—			30
Other Income (Deductions)	116			118			—			(196		)	38
Non-Operating Pension and OPEB Credits (Costs)	—			10			1			—			11
Interest Expense	(161		)	(64		)	(18		)	196			(47		)
Income Tax Benefit (Expense)	44			(179		)	8			—			(127		)
Net Income (Loss)	$	400		$	391		$	1		$	(392	)	$	400
Comprehensive Income (Loss)	$	400		$	374		$	1		$	(375	)	$	400
Nine Months Ended September 30, 2018
Net Cash Provided By (Used In) Operating Activities	$	(255	)	$	1,169		$	(26	)	$	117		$	1,005
Net Cash Provided By (Used In) Investing Activities	$	(417	)	$	(1,132	)	$	(290	)	$	829		$	(1,010	)
Net Cash Provided By (Used In) Financing Activities	$	672		$	(32	)	$	320		$	(946	)	$	14




	Power			Guarantor Subsidiaries			Other Subsidiaries			Consolidating Adjustments			Total
	Millions
Three Months Ended September 30, 2017
Operating Revenues	$	—		$	829		$	46		$	(29	)	$	846
Operating Expenses	2			618			44			(29		)	635
Operating Income (Loss)	(2		)	211			2			—			211
Equity Earnings (Losses) of Subsidiaries	143			(3		)	3			(140		)	3
Net Gains (Losses) on Trust Investments	—			19			—			—			19
Other Income (Deductions)	24			26			(2		)	(37		)	11
Non-Operating Pension and OPEB Credits (Costs)	—			2			—			—			2
Interest Expense	(32		)	(12		)	(5		)	37			(12		)
Income Tax Benefit (Expense)	3			(103		)	2			—			(98		)
Net Income (Loss)	$	136		$	140		$	—		$	(140	)	$	136
Comprehensive Income (Loss)	$	156		$	154		$	—		$	(154	)	$	156
Nine Months Ended September 30, 2017
Operating Revenues	$	—		$	2,983		$	145		$	(95	)	$	3,033
Operating Expenses	4			3,268			139			(95		)	3,316
Operating Income (Loss)	(4		)	(285		)	6			—			(283		)
Equity Earnings (Losses) of Subsidiaries	(111		)	(8		)	11			119			11
Net Gains (Losses) on Trust Investments	3			59			—			—			62
Other Income (Deductions)	67			66			—			(99		)	34
Non-Operating Pension and OPEB Credits (Costs)	—			6			—			—			6
Interest Expense	(96		)	(30		)	(14		)	99			(41		)
Income Tax Benefit (Expense)	10			68			2			—			80
Net Income (Loss)	$	(131	)	$	(124	)	$	5		$	119		$	(131	)
Comprehensive Income (Loss)	$	(72	)	$	(80	)	$	5		$	75		$	(72	)
Nine Months Ended September 30, 2017
Net Cash Provided By (Used In) Operating Activities	$	(55	)	$	1,159		$	142		$	3		$	1,249
Net Cash Provided By (Used In) Investing Activities	$	738		$	(289	)	$	(343	)	$	(990	)	$	(884	)
Net Cash Provided By (Used In) Financing Activities	$	(683	)	$	(869	)	$	211		$	987		$	(354	)




	Power		Guarantor Subsidiaries		Other Subsidiaries		Consolidating Adjustments			Total
	Millions
As of September 30, 2018
Current Assets	$	4,497	$	1,353	$	302	$	(4,776	)	$	1,376
Property, Plant and Equipment, net	55		5,074		3,740		—			8,869
Investment in Subsidiaries	5,086		1,124		—		(6,210		)	—
Noncurrent Assets	245		2,302		106		(217		)	2,436
Total Assets	$	9,883	$	9,853	$	4,148	$	(11,203	)	$	12,681
Current Liabilities	$	616	$	3,030	$	1,999	$	(4,776	)	$	869
Noncurrent Liabilities	466		2,129		633		(217		)	3,011
Long-Term Debt	2,834		—		—		—			2,834
Member’s Equity	5,967		4,694		1,516		(6,210		)	5,967
Total Liabilities and Member’s Equity	$	9,883	$	9,853	$	4,148	$	(11,203	)	$	12,681
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