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Trust Investments
 12 Months Ended
Dec. 31, 2018
Schedule of Trust Investments [Line Items]  
Trust Investments [Text Block]
NDT Fund
In accordance with NRC regulations, entities owning an interest in nuclear generating facilities are required to determine the costs and funding methods necessary to decommission such facilities upon termination of operation. As a general practice, each nuclear owner places funds in independent external trust accounts it maintains to provide for decommissioning. Power is required to file periodic reports with the NRC demonstrating that its NDT Fund meets the formula-based minimum NRC funding requirements.
Power maintains an external master NDT to fund its share of decommissioning for its five nuclear facilities upon their respective termination of operation. The trust contains two separate funds: a qualified fund and a non-qualified fund. Section 468A of the Internal Revenue Code limits the amount of money that can be contributed into a qualified fund. Power’s share of decommissioning costs related to its five nuclear units was estimated to be between $2.8 billion and $3.0 billion, including contingencies. The liability for decommissioning recorded on a discounted basis as of December 31, 2018 was approximately $708 million and is included in the Asset Retirement Obligation. The funds are managed by third-party investment managers who operate under investment guidelines developed by Power.
The following tables show the fair values and gross unrealized gains and losses for the securities held in the NDT Fund.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of December 31, 2018
 
 
 
 
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
 
 
 
 
Millions
 
 
Equity Securities
 
 
 
 
 
 
 
 
 
 
Domestic
 
$
447

 
$
153

 
$
(29
)
 
$
571

 
 
International
 
323

 
36

 
(30
)
 
329

 
 
Total Equity Securities
 
770

 
189

 
(59
)
 
900

 
 
Available-for Sale Debt Securities
 
 
 
 
 
 
 
 
 
 
Government
 
498

 
2

 
(9
)
 
491

 
 
Corporate
 
501

 
1

 
(15
)
 
487

 
 
Total Available-for-Sale Debt Securities
 
999

 
3

 
(24
)
 
978

 
 
Total NDT Fund Investments
 
$
1,769

 
$
192

 
$
(83
)
 
$
1,878

 
 
 
 
 
 
 
 
 
 


 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of December 31, 2017
 
 
 
 
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
 
 
 
 
Millions
 
 
Equity Securities
 
 
 
 
 
 
 
 
 
 
Domestic
 
$
497

 
$
245

 
$
(2
)
 
$
740

 
 
International
 
311

 
99

—

(3
)
 
407

 
 
Total Equity Securities
 
808

 
344

 
(5
)
 
1,147

 
 
Available-for Sale Debt Securities
 
 
 
 
 
 
 
 
 
 
Government
 
586

 
2

 
(4
)
 
584

 
 
Corporate
 
400

 
4

 
(2
)
 
402

 
 
Total Available-for-Sale Debt Securities
 
986

 
6

 
(6
)
 
986

 
 
Total NDT Fund Investments
 
$
1,794

 
$
350

 
$
(11
)
 
$
2,133

 
 
 
 
 
 
 
 
 
 
 
 

Net unrealized gains (losses) on debt securities of $(12) million (after-tax) were included in Accumulated Other Comprehensive Loss on PSEG’s and Power’s Consolidated Balance Sheets as of December 31, 2018. The portion of net unrealized gains (losses) recognized during 2018 related to equity securities still held at the end of December 31, 2018 was $(127) million.
The amounts in the preceding tables do not include receivables and payables for NDT Fund transactions which have not settled at the end of each period. Such amounts are included in Accounts Receivable and Accounts Payable on the Consolidated Balance Sheets as shown in the following table.
 
 
 
 
 
 
 
 
 
 
As of December 31, 2018
 
As of December 31, 2017
 
 
 
 
Millions
 
 
Accounts Receivable
 
$
17

 
$
24

 
 
Accounts Payable
 
$
5

 
$
74

 
 
 
 
 
 
 
 

The following table shows the value of securities in the NDT Fund that have been in an unrealized loss position for less than and greater than 12 months.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of December 31, 2018
 
As of December 31, 2017
 
 
 
 
Less Than 12
Months
 
Greater Than 12
Months
 
Less Than 12
Months
 
Greater Than 12
Months
 
 
 
 
Fair
Value
 
Gross
Unrealized
Losses
 
Fair
Value
 
Gross
Unrealized
Losses
 
Fair
Value
 
Gross
Unrealized
Losses
 
Fair
Value
 
Gross
Unrealized
Losses
 
 
 
 
Millions
 
 
Equity Securities (A)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Domestic
 
$
147

 
$
(26
)
 
$
5

 
$
(3
)
 
$
40

 
$
(2
)
 
$
—

 
$
—

 
 
International
 
131

 
(28
)
 
5

 
(2
)
 
29

 
(3
)
 
2

 
—

 
 
Total Equity Securities
 
278

 
(54
)
 
10

 
(5
)
 
69

 
(5
)
 
2

 
—

 
 
Available-for-Sale Debt Securities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Government (B)
 
51

 
—

 
317

 
(9
)
 
343

 
(2
)
 
91

 
(2
)
 
 
Corporate (C)
 
150

 
(5
)
 
222

 
(10
)
 
191

 
(1
)
 
27

 
(1
)
 
 
Total Available-for-Sale Debt Securities
 
201

 
(5
)
 
539

 
(19
)
 
534

 
(3
)
 
118

 
(3
)
 
 
NDT Trust Investments
 
$
479

 
$
(59
)
 
$
549

 
$
(24
)
 
$
603

 
$
(8
)
 
$
120

 
$
(3
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(A)
Equity Securities—Investments in marketable equity securities within the NDT Fund are primarily in common stocks within a broad range of industries and sectors. Effective January 1, 2018, unrealized gains and losses on these securities are recorded in Net Income.
(B)
Debt Securities (Government)—Unrealized gains and losses on these securities are recorded in Accumulated Other Comprehensive Income (Loss). The unrealized losses on Power’s NDT investments in U.S. Treasury obligations and Federal Agency mortgage-backed securities were caused by interest rate changes. These investments are guaranteed by the U.S. government or an agency of the U.S. government. Power also has investments in municipal bonds that are primarily in investment grade securities. It is not expected that these securities will settle for less than their amortized cost. Since Power does not intend to sell these securities nor will it be more-likely-than-not required to sell, Power does not consider these debt securities to be other-than-temporarily impaired as of December 31, 2018.
(C)
Debt Securities (Corporate)—Unrealized gains and losses on these securities are recorded in Accumulated Other Comprehensive Income (Loss). Power’s investments in corporate bonds are primarily in investment grade securities. It is not expected that these securities would settle for less than their amortized cost. Since Power does not intend to sell these securities nor will it be more-likely-than-not required to sell, Power does not consider these debt securities to be other-than-temporarily impaired as of December 31, 2018.
The proceeds from the sales of and the net gains (losses) on securities in the NDT Fund were:
 
 
 
 
 
 
 
 
 
 
 
 
Years Ended December 31,
 
 
 
 
2018
 
2017
 
2016
 
 
 
 
Millions
 
 
Proceeds from Sales (A)
 
$
1,398

 
$
2,137

 
$
711

 
 
Net Realized Gains (Losses):
 
 
 
 
 
 
 
 
Gross Realized Gains
 
$
121

 
$
157

 
$
53

 
 
Gross Realized Losses
 
(51
)
 
(23
)
 
(32
)
 
 
Net Realized Gains (Losses) on NDT Fund (B)
 
$
70

 
$
134

 
$
21

 
 
Unrealized Gains (Losses) on Equity Securities in NDT Fund (C)
 
(209
)
 
N/A

 
N/A

 
 
Other-Than-Temporary-Impairments (OTTI)
 
—

 
(12
)
 
(28
)
 
 
Net Gains (Losses) on NDT Fund Investments
 
$
(139
)
 
$
122

 
$
(7
)
 
 
 
 
 
 
 
 
 
 

(A)
Includes activity in accounts related to the liquidation of funds being transitioned to new managers.
(B)
The cost of these securities was determined on the basis of specific identification.
(C)
Effective January 1, 2018, unrealized gains (losses) on equity securities are recorded in Net Income instead of Other Comprehensive Income (Loss).
The NDT Fund debt securities held as of December 31, 2018 had the following maturities:
 
 
 
 
 
 
Time Frame
 
Fair Value
 
 
 
 
Millions
 
 
Less than one year
 
$
13

 
 
1 - 5 years
 
254

 
 
6 - 10 years
 
211

 
 
11 - 15 years
 
40

 
 
16 - 20 years
 
77

 
 
Over 20 years
 
383

 
 
Total NDT Available-for-Sale Debt Securities
 
$
978

 
 
 
 
 
 

Power periodically assesses individual debt securities whose fair value is less than amortized cost to determine whether the investments are considered to be other-than-temporarily impaired. For these securities, management considers its intent to sell or requirement to sell a security prior to expected recovery. In those cases where a sale is expected, any impairment would be recorded through earnings. For fixed income securities where there is no intent to sell or likely requirement to sell, management evaluates whether credit loss is a component of the impairment. If so, that portion is recorded through earnings while the noncredit loss component is recorded through Accumulated Other Comprehensive Income (Loss). Any subsequent recoveries in the value of these securities would be recognized in Accumulated Other Comprehensive Income (Loss) unless the securities are sold, in which case, any gain would be recognized in income. The assessment of fair market value compared to cost is applied on a weighted average basis taking into account various purchase dates and initial cost of the securities.
Rabbi Trust
PSEG maintains certain unfunded nonqualified benefit plans to provide supplemental retirement and deferred compensation benefits to certain key employees. Certain assets related to these plans have been set aside in a grantor trust commonly known as a “Rabbi Trust.”
The following tables show the fair values, gross unrealized gains and losses and amortized cost basis for the securities held in the Rabbi Trust.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of December 31, 2018
 
 
 
 
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
 
 
 
 
Millions
 
 
Equity Securities
 
 
 
 
 
 
 
 
 
 
Domestic
 
$
22

 
$
1

 
$
—

 
$
23

 
 
International
 
—

 
—

 
—

 
—

 
 
Total Equity Securities
 
22

 
1

 
—

 
23

 
 
Available-for-Sale Debt Securities
 
 
 
 
 
 
 
 
 
 
  Government
 
110

 
1

 
(2
)
 
109

 
 
  Corporate
 
96

 
—

 
(4
)
 
92

 
 
Total Available-for-Sale Debt Securities
 
206

 
1

 
(6
)
 
201

 
 
Total Rabbi Trust Investments
 
$
228

 
$
2

 
$
(6
)
 
$
224

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of December 31, 2017
 
 
 
 
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
 
 
 
 
Millions
 
 
Equity Securities
 
 
 
 
 
 
 
 
 
 
Domestic
 
$
24

 
$
3

 
$
—

 
$
27

 
 
International
 
—

 
—

 
—

 
—

 
 
Total Equity Securities
 
24

 
3

 
—

 
27

 
 
Available-for-Sale Debt Securities
 
 
 
 
 
 
 
 
 
 
  Government
 
85

 
1

 
(1
)
 
85

 
 
  Corporate
 
118

 
2

 
(1
)
 
119

 
 
Total Available-for-Sale Debt Securities
 
203

 
3

 
(2
)
 
204

 
 
Total Rabbi Trust Investments
 
$
227

 
$
6

 
$
(2
)
 
$
231

 
 
 
 
 
 
 
 
 
 
 
 

Net unrealized gains (losses) on debt securities of $(4) million (after-tax) were included in Accumulated Other Comprehensive Loss on PSEG’s Consolidated Balance Sheet as of December 31, 2018. The portion of net unrealized gains (losses) recognized during 2018 related to equity securities still held at the end of December 31, 2018 was $(2) million.
The amounts in the preceding tables do not include receivables and payables for Rabbi Trust Fund transactions which have not settled at the end of each period. Such amounts are included in Accounts Receivable and Accounts Payable on the Consolidated Balance Sheets as shown in the following table.
 
 
 
 
 
 
 
 
 
 
As of December 31, 2018
 
As of December 31, 2017
 
 
 
 
Millions
 
 
Accounts Receivable
 
$
2

 
$
2

 
 
Accounts Payable
 
$
—

 
$
1

 
 
 
 
 
 
 
 

The following table shows the value of securities in the Rabbi Trust Fund that have been in an unrealized loss position for less than and greater than 12 months:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of December 31, 2018
 
As of December 31, 2017
 
 
 
 
Less Than 12
Months
 
Greater Than 12
Months
 
Less Than 12
Months
 
Greater Than 12
Months
 
 
 
 
Fair
Value
 
Gross
Unrealized
Losses
 
Fair
Value
 
Gross
Unrealized
Losses
 
Fair
Value
 
Gross
Unrealized
Losses
 
Fair
Value
 
Gross
Unrealized
Losses
 
 
 
 
Millions
 
 
Available-for-Sale Debt Securities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Government (A)
 
$
18

 
$
—

 
$
59

 
$
(2
)
 
$
28

 
$
—

 
$
25

 
$
(1
)
 
 
Corporate (B)
 
50

 
(3
)
 
29

 
(1
)
 
39

 
(1
)
 
9

 
—

 
 
Total Available-for-Sale Debt Securities
 
68

 
(3
)
 
88

 
(3
)
 
67

 
(1
)
 
34

 
(1
)
 
 
Rabbi Trust Investments
 
$
68

 
$
(3
)
 
$
88

 
$
(3
)
 
$
67

 
$
(1
)
 
$
34

 
$
(1
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

(A)
Debt Securities (Government)—Unrealized gains and losses on these securities are recorded in Accumulated Other Comprehensive Income (Loss). The unrealized losses on PSEG’s Rabbi Trust investments in U.S. Treasury obligations and Federal Agency mortgage-backed securities were caused by interest rate changes. These investments are guaranteed by the U.S. government or an agency of the U.S. government. PSEG also has investments in municipal bonds that are primarily in investment grade securities. It is not expected that these securities will settle for less than their amortized cost. Since PSEG does not intend to sell these securities nor will it be more-likely-than-not required to sell, PSEG does not consider these debt securities to be other-than-temporarily impaired as of December 31, 2018.
(B)
Debt Securities (Corporate)—Unrealized gains and losses on these securities are recorded in Accumulated Other Comprehensive Income (Loss). PSEG’s investments in corporate bonds are primarily in investment grade securities. It is not expected that these securities would settle for less than their amortized cost. Since PSEG does not intend to sell these securities nor will it be more-likely-than-not required to sell, PSEG does not consider these debt securities to be other-than-temporarily impaired as of December 31, 2018.
The proceeds from the sales of and the net gains (losses) on securities in the Rabbi Trust Fund were:
 
 
 
 
 
 
 
 
 
 
 
 
Years Ended December 31,
 
 
 
 
2018
 
2017
 
2016
 
 
 
 
Millions
 
 
Proceeds from Rabbi Trust Sales (A)
 
$
103

 
$
182

 
$
113

 
 
Net Realized Gains (Losses):
 
 
 
 
 
 
 
 
Gross Realized Gains
 
$
2

 
$
17

 
$
6

 
 
Gross Realized Losses
 
(4
)
 
(5
)
 
(5
)
 
 
Net Realized Gains (Losses) on Rabbi Trust (B)
 
(2
)
 
12

 
1

 
 
Unrealized Gains (Losses) on Equity Securities in Rabbi Trust (C)
 
(2
)
 
N/A

 
N/A

 
 
Net Gains (Losses) on Rabbi Trust Investments
 
$
(4
)
 
$
12

 
$
1

 
 
 
 
 
 
 
 
 
 

(A)
Includes activity in accounts related to the liquidation of funds being transitioned to new managers.
(B)
The cost of these securities was determined on the basis of specific identification.
(C)
Effective January 1, 2018, unrealized gains (losses) on equity securities are recorded in Net Income instead of Other Comprehensive Income (Loss).
The Rabbi Trust debt securities held as of December 31, 2018 had the following maturities:
 
 
 
 
 
 
Time Frame
 
Fair Value
 
 
 
 
Millions
 
 
Less than one year
 
$
1

 
 
1 - 5 years
 
35

 
 
6 - 10 years
 
27

 
 
11 - 15 years
 
8

 
 
16 - 20 years
 
21

 
 
Over 20 years
 
109

 
 
Total Rabbi Trust Available-for-Sale Debt Securities
 
$
201

 
 
 
 
 
 
 
PSEG periodically assesses individual debt securities whose fair value is less than amortized cost to determine whether the investments are considered to be other-than-temporarily impaired. For these securities, management considers its intent to sell or requirement to sell a security prior to expected recovery. In those cases where a sale is expected, any impairment would be recorded through earnings. For fixed income securities where there is no intent to sell or likely requirement to sell, management evaluates whether credit loss is a component of the impairment. If so, that portion is recorded through earnings while the noncredit loss component is recorded through Accumulated Other Comprehensive Income (Loss). The assessment of fair market value compared to cost is applied on a weighted average basis taking into account various purchase dates and initial cost of the securities. The fair value of the Rabbi Trust related to PSEG, PSE&G and Power are detailed as follows:
 
 
 
 
 
 
 
 
 
 
As of December 31,
 
As of December 31,
 
 
 
 
2018
 
2017
 
 
 
 
Millions
 
 
PSE&G
 
$
45

 
$
46

 
 
Power
 
56

 
57

 
 
Other
 
123

 
128

 
 
Total Rabbi Trust Investments
 
$
224

 
$
231

 
 
 
 
 
 
 
 
PSE&G [Member]  
Schedule of Trust Investments [Line Items]  
Trust Investments [Text Block]
NDT Fund
In accordance with NRC regulations, entities owning an interest in nuclear generating facilities are required to determine the costs and funding methods necessary to decommission such facilities upon termination of operation. As a general practice, each nuclear owner places funds in independent external trust accounts it maintains to provide for decommissioning. Power is required to file periodic reports with the NRC demonstrating that its NDT Fund meets the formula-based minimum NRC funding requirements.
Power maintains an external master NDT to fund its share of decommissioning for its five nuclear facilities upon their respective termination of operation. The trust contains two separate funds: a qualified fund and a non-qualified fund. Section 468A of the Internal Revenue Code limits the amount of money that can be contributed into a qualified fund. Power’s share of decommissioning costs related to its five nuclear units was estimated to be between $2.8 billion and $3.0 billion, including contingencies. The liability for decommissioning recorded on a discounted basis as of December 31, 2018 was approximately $708 million and is included in the Asset Retirement Obligation. The funds are managed by third-party investment managers who operate under investment guidelines developed by Power.
The following tables show the fair values and gross unrealized gains and losses for the securities held in the NDT Fund.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of December 31, 2018
 
 
 
 
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
 
 
 
 
Millions
 
 
Equity Securities
 
 
 
 
 
 
 
 
 
 
Domestic
 
$
447

 
$
153

 
$
(29
)
 
$
571

 
 
International
 
323

 
36

 
(30
)
 
329

 
 
Total Equity Securities
 
770

 
189

 
(59
)
 
900

 
 
Available-for Sale Debt Securities
 
 
 
 
 
 
 
 
 
 
Government
 
498

 
2

 
(9
)
 
491

 
 
Corporate
 
501

 
1

 
(15
)
 
487

 
 
Total Available-for-Sale Debt Securities
 
999

 
3

 
(24
)
 
978

 
 
Total NDT Fund Investments
 
$
1,769

 
$
192

 
$
(83
)
 
$
1,878

 
 
 
 
 
 
 
 
 
 


 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of December 31, 2017
 
 
 
 
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
 
 
 
 
Millions
 
 
Equity Securities
 
 
 
 
 
 
 
 
 
 
Domestic
 
$
497

 
$
245

 
$
(2
)
 
$
740

 
 
International
 
311

 
99

—

(3
)
 
407

 
 
Total Equity Securities
 
808

 
344

 
(5
)
 
1,147

 
 
Available-for Sale Debt Securities
 
 
 
 
 
 
 
 
 
 
Government
 
586

 
2

 
(4
)
 
584

 
 
Corporate
 
400

 
4

 
(2
)
 
402

 
 
Total Available-for-Sale Debt Securities
 
986

 
6

 
(6
)
 
986

 
 
Total NDT Fund Investments
 
$
1,794

 
$
350

 
$
(11
)
 
$
2,133

 
 
 
 
 
 
 
 
 
 
 
 

Net unrealized gains (losses) on debt securities of $(12) million (after-tax) were included in Accumulated Other Comprehensive Loss on PSEG’s and Power’s Consolidated Balance Sheets as of December 31, 2018. The portion of net unrealized gains (losses) recognized during 2018 related to equity securities still held at the end of December 31, 2018 was $(127) million.
The amounts in the preceding tables do not include receivables and payables for NDT Fund transactions which have not settled at the end of each period. Such amounts are included in Accounts Receivable and Accounts Payable on the Consolidated Balance Sheets as shown in the following table.
 
 
 
 
 
 
 
 
 
 
As of December 31, 2018
 
As of December 31, 2017
 
 
 
 
Millions
 
 
Accounts Receivable
 
$
17

 
$
24

 
 
Accounts Payable
 
$
5

 
$
74

 
 
 
 
 
 
 
 

The following table shows the value of securities in the NDT Fund that have been in an unrealized loss position for less than and greater than 12 months.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of December 31, 2018
 
As of December 31, 2017
 
 
 
 
Less Than 12
Months
 
Greater Than 12
Months
 
Less Than 12
Months
 
Greater Than 12
Months
 
 
 
 
Fair
Value
 
Gross
Unrealized
Losses
 
Fair
Value
 
Gross
Unrealized
Losses
 
Fair
Value
 
Gross
Unrealized
Losses
 
Fair
Value
 
Gross
Unrealized
Losses
 
 
 
 
Millions
 
 
Equity Securities (A)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Domestic
 
$
147

 
$
(26
)
 
$
5

 
$
(3
)
 
$
40

 
$
(2
)
 
$
—

 
$
—

 
 
International
 
131

 
(28
)
 
5

 
(2
)
 
29

 
(3
)
 
2

 
—

 
 
Total Equity Securities
 
278

 
(54
)
 
10

 
(5
)
 
69

 
(5
)
 
2

 
—

 
 
Available-for-Sale Debt Securities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Government (B)
 
51

 
—

 
317

 
(9
)
 
343

 
(2
)
 
91

 
(2
)
 
 
Corporate (C)
 
150

 
(5
)
 
222

 
(10
)
 
191

 
(1
)
 
27

 
(1
)
 
 
Total Available-for-Sale Debt Securities
 
201

 
(5
)
 
539

 
(19
)
 
534

 
(3
)
 
118

 
(3
)
 
 
NDT Trust Investments
 
$
479

 
$
(59
)
 
$
549

 
$
(24
)
 
$
603

 
$
(8
)
 
$
120

 
$
(3
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(A)
Equity Securities—Investments in marketable equity securities within the NDT Fund are primarily in common stocks within a broad range of industries and sectors. Effective January 1, 2018, unrealized gains and losses on these securities are recorded in Net Income.
(B)
Debt Securities (Government)—Unrealized gains and losses on these securities are recorded in Accumulated Other Comprehensive Income (Loss). The unrealized losses on Power’s NDT investments in U.S. Treasury obligations and Federal Agency mortgage-backed securities were caused by interest rate changes. These investments are guaranteed by the U.S. government or an agency of the U.S. government. Power also has investments in municipal bonds that are primarily in investment grade securities. It is not expected that these securities will settle for less than their amortized cost. Since Power does not intend to sell these securities nor will it be more-likely-than-not required to sell, Power does not consider these debt securities to be other-than-temporarily impaired as of December 31, 2018.
(C)
Debt Securities (Corporate)—Unrealized gains and losses on these securities are recorded in Accumulated Other Comprehensive Income (Loss). Power’s investments in corporate bonds are primarily in investment grade securities. It is not expected that these securities would settle for less than their amortized cost. Since Power does not intend to sell these securities nor will it be more-likely-than-not required to sell, Power does not consider these debt securities to be other-than-temporarily impaired as of December 31, 2018.
The proceeds from the sales of and the net gains (losses) on securities in the NDT Fund were:
 
 
 
 
 
 
 
 
 
 
 
 
Years Ended December 31,
 
 
 
 
2018
 
2017
 
2016
 
 
 
 
Millions
 
 
Proceeds from Sales (A)
 
$
1,398

 
$
2,137

 
$
711

 
 
Net Realized Gains (Losses):
 
 
 
 
 
 
 
 
Gross Realized Gains
 
$
121

 
$
157

 
$
53

 
 
Gross Realized Losses
 
(51
)
 
(23
)
 
(32
)
 
 
Net Realized Gains (Losses) on NDT Fund (B)
 
$
70

 
$
134

 
$
21

 
 
Unrealized Gains (Losses) on Equity Securities in NDT Fund (C)
 
(209
)
 
N/A

 
N/A

 
 
Other-Than-Temporary-Impairments (OTTI)
 
—

 
(12
)
 
(28
)
 
 
Net Gains (Losses) on NDT Fund Investments
 
$
(139
)
 
$
122

 
$
(7
)
 
 
 
 
 
 
 
 
 
 

(A)
Includes activity in accounts related to the liquidation of funds being transitioned to new managers.
(B)
The cost of these securities was determined on the basis of specific identification.
(C)
Effective January 1, 2018, unrealized gains (losses) on equity securities are recorded in Net Income instead of Other Comprehensive Income (Loss).
The NDT Fund debt securities held as of December 31, 2018 had the following maturities:
 
 
 
 
 
 
Time Frame
 
Fair Value
 
 
 
 
Millions
 
 
Less than one year
 
$
13

 
 
1 - 5 years
 
254

 
 
6 - 10 years
 
211

 
 
11 - 15 years
 
40

 
 
16 - 20 years
 
77

 
 
Over 20 years
 
383

 
 
Total NDT Available-for-Sale Debt Securities
 
$
978

 
 
 
 
 
 

Power periodically assesses individual debt securities whose fair value is less than amortized cost to determine whether the investments are considered to be other-than-temporarily impaired. For these securities, management considers its intent to sell or requirement to sell a security prior to expected recovery. In those cases where a sale is expected, any impairment would be recorded through earnings. For fixed income securities where there is no intent to sell or likely requirement to sell, management evaluates whether credit loss is a component of the impairment. If so, that portion is recorded through earnings while the noncredit loss component is recorded through Accumulated Other Comprehensive Income (Loss). Any subsequent recoveries in the value of these securities would be recognized in Accumulated Other Comprehensive Income (Loss) unless the securities are sold, in which case, any gain would be recognized in income. The assessment of fair market value compared to cost is applied on a weighted average basis taking into account various purchase dates and initial cost of the securities.
Rabbi Trust
PSEG maintains certain unfunded nonqualified benefit plans to provide supplemental retirement and deferred compensation benefits to certain key employees. Certain assets related to these plans have been set aside in a grantor trust commonly known as a “Rabbi Trust.”
The following tables show the fair values, gross unrealized gains and losses and amortized cost basis for the securities held in the Rabbi Trust.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of December 31, 2018
 
 
 
 
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
 
 
 
 
Millions
 
 
Equity Securities
 
 
 
 
 
 
 
 
 
 
Domestic
 
$
22

 
$
1

 
$
—

 
$
23

 
 
International
 
—

 
—

 
—

 
—

 
 
Total Equity Securities
 
22

 
1

 
—

 
23

 
 
Available-for-Sale Debt Securities
 
 
 
 
 
 
 
 
 
 
  Government
 
110

 
1

 
(2
)
 
109

 
 
  Corporate
 
96

 
—

 
(4
)
 
92

 
 
Total Available-for-Sale Debt Securities
 
206

 
1

 
(6
)
 
201

 
 
Total Rabbi Trust Investments
 
$
228

 
$
2

 
$
(6
)
 
$
224

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of December 31, 2017
 
 
 
 
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
 
 
 
 
Millions
 
 
Equity Securities
 
 
 
 
 
 
 
 
 
 
Domestic
 
$
24

 
$
3

 
$
—

 
$
27

 
 
International
 
—

 
—

 
—

 
—

 
 
Total Equity Securities
 
24

 
3

 
—

 
27

 
 
Available-for-Sale Debt Securities
 
 
 
 
 
 
 
 
 
 
  Government
 
85

 
1

 
(1
)
 
85

 
 
  Corporate
 
118

 
2

 
(1
)
 
119

 
 
Total Available-for-Sale Debt Securities
 
203

 
3

 
(2
)
 
204

 
 
Total Rabbi Trust Investments
 
$
227

 
$
6

 
$
(2
)
 
$
231

 
 
 
 
 
 
 
 
 
 
 
 

Net unrealized gains (losses) on debt securities of $(4) million (after-tax) were included in Accumulated Other Comprehensive Loss on PSEG’s Consolidated Balance Sheet as of December 31, 2018. The portion of net unrealized gains (losses) recognized during 2018 related to equity securities still held at the end of December 31, 2018 was $(2) million.
The amounts in the preceding tables do not include receivables and payables for Rabbi Trust Fund transactions which have not settled at the end of each period. Such amounts are included in Accounts Receivable and Accounts Payable on the Consolidated Balance Sheets as shown in the following table.
 
 
 
 
 
 
 
 
 
 
As of December 31, 2018
 
As of December 31, 2017
 
 
 
 
Millions
 
 
Accounts Receivable
 
$
2

 
$
2

 
 
Accounts Payable
 
$
—

 
$
1

 
 
 
 
 
 
 
 

The following table shows the value of securities in the Rabbi Trust Fund that have been in an unrealized loss position for less than and greater than 12 months:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of December 31, 2018
 
As of December 31, 2017
 
 
 
 
Less Than 12
Months
 
Greater Than 12
Months
 
Less Than 12
Months
 
Greater Than 12
Months
 
 
 
 
Fair
Value
 
Gross
Unrealized
Losses
 
Fair
Value
 
Gross
Unrealized
Losses
 
Fair
Value
 
Gross
Unrealized
Losses
 
Fair
Value
 
Gross
Unrealized
Losses
 
 
 
 
Millions
 
 
Available-for-Sale Debt Securities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Government (A)
 
$
18

 
$
—

 
$
59

 
$
(2
)
 
$
28

 
$
—

 
$
25

 
$
(1
)
 
 
Corporate (B)
 
50

 
(3
)
 
29

 
(1
)
 
39

 
(1
)
 
9

 
—

 
 
Total Available-for-Sale Debt Securities
 
68

 
(3
)
 
88

 
(3
)
 
67

 
(1
)
 
34

 
(1
)
 
 
Rabbi Trust Investments
 
$
68

 
$
(3
)
 
$
88

 
$
(3
)
 
$
67

 
$
(1
)
 
$
34

 
$
(1
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

(A)
Debt Securities (Government)—Unrealized gains and losses on these securities are recorded in Accumulated Other Comprehensive Income (Loss). The unrealized losses on PSEG’s Rabbi Trust investments in U.S. Treasury obligations and Federal Agency mortgage-backed securities were caused by interest rate changes. These investments are guaranteed by the U.S. government or an agency of the U.S. government. PSEG also has investments in municipal bonds that are primarily in investment grade securities. It is not expected that these securities will settle for less than their amortized cost. Since PSEG does not intend to sell these securities nor will it be more-likely-than-not required to sell, PSEG does not consider these debt securities to be other-than-temporarily impaired as of December 31, 2018.
(B)
Debt Securities (Corporate)—Unrealized gains and losses on these securities are recorded in Accumulated Other Comprehensive Income (Loss). PSEG’s investments in corporate bonds are primarily in investment grade securities. It is not expected that these securities would settle for less than their amortized cost. Since PSEG does not intend to sell these securities nor will it be more-likely-than-not required to sell, PSEG does not consider these debt securities to be other-than-temporarily impaired as of December 31, 2018.
The proceeds from the sales of and the net gains (losses) on securities in the Rabbi Trust Fund were:
 
 
 
 
 
 
 
 
 
 
 
 
Years Ended December 31,
 
 
 
 
2018
 
2017
 
2016
 
 
 
 
Millions
 
 
Proceeds from Rabbi Trust Sales (A)
 
$
103

 
$
182

 
$
113

 
 
Net Realized Gains (Losses):
 
 
 
 
 
 
 
 
Gross Realized Gains
 
$
2

 
$
17

 
$
6

 
 
Gross Realized Losses
 
(4
)
 
(5
)
 
(5
)
 
 
Net Realized Gains (Losses) on Rabbi Trust (B)
 
(2
)
 
12

 
1

 
 
Unrealized Gains (Losses) on Equity Securities in Rabbi Trust (C)
 
(2
)
 
N/A

 
N/A

 
 
Net Gains (Losses) on Rabbi Trust Investments
 
$
(4
)
 
$
12

 
$
1

 
 
 
 
 
 
 
 
 
 

(A)
Includes activity in accounts related to the liquidation of funds being transitioned to new managers.
(B)
The cost of these securities was determined on the basis of specific identification.
(C)
Effective January 1, 2018, unrealized gains (losses) on equity securities are recorded in Net Income instead of Other Comprehensive Income (Loss).
The Rabbi Trust debt securities held as of December 31, 2018 had the following maturities:
 
 
 
 
 
 
Time Frame
 
Fair Value
 
 
 
 
Millions
 
 
Less than one year
 
$
1

 
 
1 - 5 years
 
35

 
 
6 - 10 years
 
27

 
 
11 - 15 years
 
8

 
 
16 - 20 years
 
21

 
 
Over 20 years
 
109

 
 
Total Rabbi Trust Available-for-Sale Debt Securities
 
$
201

 
 
 
 
 
 
 
PSEG periodically assesses individual debt securities whose fair value is less than amortized cost to determine whether the investments are considered to be other-than-temporarily impaired. For these securities, management considers its intent to sell or requirement to sell a security prior to expected recovery. In those cases where a sale is expected, any impairment would be recorded through earnings. For fixed income securities where there is no intent to sell or likely requirement to sell, management evaluates whether credit loss is a component of the impairment. If so, that portion is recorded through earnings while the noncredit loss component is recorded through Accumulated Other Comprehensive Income (Loss). The assessment of fair market value compared to cost is applied on a weighted average basis taking into account various purchase dates and initial cost of the securities. The fair value of the Rabbi Trust related to PSEG, PSE&G and Power are detailed as follows:
 
 
 
 
 
 
 
 
 
 
As of December 31,
 
As of December 31,
 
 
 
 
2018
 
2017
 
 
 
 
Millions
 
 
PSE&G
 
$
45

 
$
46

 
 
Power
 
56

 
57

 
 
Other
 
123

 
128

 
 
Total Rabbi Trust Investments
 
$
224

 
$
231

 
 
 
 
 
 
 
 
Power [Member]  
Schedule of Trust Investments [Line Items]  
Trust Investments [Text Block]
NDT Fund
In accordance with NRC regulations, entities owning an interest in nuclear generating facilities are required to determine the costs and funding methods necessary to decommission such facilities upon termination of operation. As a general practice, each nuclear owner places funds in independent external trust accounts it maintains to provide for decommissioning. Power is required to file periodic reports with the NRC demonstrating that its NDT Fund meets the formula-based minimum NRC funding requirements.
Power maintains an external master NDT to fund its share of decommissioning for its five nuclear facilities upon their respective termination of operation. The trust contains two separate funds: a qualified fund and a non-qualified fund. Section 468A of the Internal Revenue Code limits the amount of money that can be contributed into a qualified fund. Power’s share of decommissioning costs related to its five nuclear units was estimated to be between $2.8 billion and $3.0 billion, including contingencies. The liability for decommissioning recorded on a discounted basis as of December 31, 2018 was approximately $708 million and is included in the Asset Retirement Obligation. The funds are managed by third-party investment managers who operate under investment guidelines developed by Power.
The following tables show the fair values and gross unrealized gains and losses for the securities held in the NDT Fund.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of December 31, 2018
 
 
 
 
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
 
 
 
 
Millions
 
 
Equity Securities
 
 
 
 
 
 
 
 
 
 
Domestic
 
$
447

 
$
153

 
$
(29
)
 
$
571

 
 
International
 
323

 
36

 
(30
)
 
329

 
 
Total Equity Securities
 
770

 
189

 
(59
)
 
900

 
 
Available-for Sale Debt Securities
 
 
 
 
 
 
 
 
 
 
Government
 
498

 
2

 
(9
)
 
491

 
 
Corporate
 
501

 
1

 
(15
)
 
487

 
 
Total Available-for-Sale Debt Securities
 
999

 
3

 
(24
)
 
978

 
 
Total NDT Fund Investments
 
$
1,769

 
$
192

 
$
(83
)
 
$
1,878

 
 
 
 
 
 
 
 
 
 


 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of December 31, 2017
 
 
 
 
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
 
 
 
 
Millions
 
 
Equity Securities
 
 
 
 
 
 
 
 
 
 
Domestic
 
$
497

 
$
245

 
$
(2
)
 
$
740

 
 
International
 
311

 
99

—

(3
)
 
407

 
 
Total Equity Securities
 
808

 
344

 
(5
)
 
1,147

 
 
Available-for Sale Debt Securities
 
 
 
 
 
 
 
 
 
 
Government
 
586

 
2

 
(4
)
 
584

 
 
Corporate
 
400

 
4

 
(2
)
 
402

 
 
Total Available-for-Sale Debt Securities
 
986

 
6

 
(6
)
 
986

 
 
Total NDT Fund Investments
 
$
1,794

 
$
350

 
$
(11
)
 
$
2,133

 
 
 
 
 
 
 
 
 
 
 
 

Net unrealized gains (losses) on debt securities of $(12) million (after-tax) were included in Accumulated Other Comprehensive Loss on PSEG’s and Power’s Consolidated Balance Sheets as of December 31, 2018. The portion of net unrealized gains (losses) recognized during 2018 related to equity securities still held at the end of December 31, 2018 was $(127) million.
The amounts in the preceding tables do not include receivables and payables for NDT Fund transactions which have not settled at the end of each period. Such amounts are included in Accounts Receivable and Accounts Payable on the Consolidated Balance Sheets as shown in the following table.
 
 
 
 
 
 
 
 
 
 
As of December 31, 2018
 
As of December 31, 2017
 
 
 
 
Millions
 
 
Accounts Receivable
 
$
17

 
$
24

 
 
Accounts Payable
 
$
5

 
$
74

 
 
 
 
 
 
 
 

The following table shows the value of securities in the NDT Fund that have been in an unrealized loss position for less than and greater than 12 months.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of December 31, 2018
 
As of December 31, 2017
 
 
 
 
Less Than 12
Months
 
Greater Than 12
Months
 
Less Than 12
Months
 
Greater Than 12
Months
 
 
 
 
Fair
Value
 
Gross
Unrealized
Losses
 
Fair
Value
 
Gross
Unrealized
Losses
 
Fair
Value
 
Gross
Unrealized
Losses
 
Fair
Value
 
Gross
Unrealized
Losses
 
 
 
 
Millions
 
 
Equity Securities (A)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Domestic
 
$
147

 
$
(26
)
 
$
5

 
$
(3
)
 
$
40

 
$
(2
)
 
$
—

 
$
—

 
 
International
 
131

 
(28
)
 
5

 
(2
)
 
29

 
(3
)
 
2

 
—

 
 
Total Equity Securities
 
278

 
(54
)
 
10

 
(5
)
 
69

 
(5
)
 
2

 
—

 
 
Available-for-Sale Debt Securities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Government (B)
 
51

 
—

 
317

 
(9
)
 
343

 
(2
)
 
91

 
(2
)
 
 
Corporate (C)
 
150

 
(5
)
 
222

 
(10
)
 
191

 
(1
)
 
27

 
(1
)
 
 
Total Available-for-Sale Debt Securities
 
201

 
(5
)
 
539

 
(19
)
 
534

 
(3
)
 
118

 
(3
)
 
 
NDT Trust Investments
 
$
479

 
$
(59
)
 
$
549

 
$
(24
)
 
$
603

 
$
(8
)
 
$
120

 
$
(3
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(A)
Equity Securities—Investments in marketable equity securities within the NDT Fund are primarily in common stocks within a broad range of industries and sectors. Effective January 1, 2018, unrealized gains and losses on these securities are recorded in Net Income.
(B)
Debt Securities (Government)—Unrealized gains and losses on these securities are recorded in Accumulated Other Comprehensive Income (Loss). The unrealized losses on Power’s NDT investments in U.S. Treasury obligations and Federal Agency mortgage-backed securities were caused by interest rate changes. These investments are guaranteed by the U.S. government or an agency of the U.S. government. Power also has investments in municipal bonds that are primarily in investment grade securities. It is not expected that these securities will settle for less than their amortized cost. Since Power does not intend to sell these securities nor will it be more-likely-than-not required to sell, Power does not consider these debt securities to be other-than-temporarily impaired as of December 31, 2018.
(C)
Debt Securities (Corporate)—Unrealized gains and losses on these securities are recorded in Accumulated Other Comprehensive Income (Loss). Power’s investments in corporate bonds are primarily in investment grade securities. It is not expected that these securities would settle for less than their amortized cost. Since Power does not intend to sell these securities nor will it be more-likely-than-not required to sell, Power does not consider these debt securities to be other-than-temporarily impaired as of December 31, 2018.
The proceeds from the sales of and the net gains (losses) on securities in the NDT Fund were:
 
 
 
 
 
 
 
 
 
 
 
 
Years Ended December 31,
 
 
 
 
2018
 
2017
 
2016
 
 
 
 
Millions
 
 
Proceeds from Sales (A)
 
$
1,398

 
$
2,137

 
$
711

 
 
Net Realized Gains (Losses):
 
 
 
 
 
 
 
 
Gross Realized Gains
 
$
121

 
$
157

 
$
53

 
 
Gross Realized Losses
 
(51
)
 
(23
)
 
(32
)
 
 
Net Realized Gains (Losses) on NDT Fund (B)
 
$
70

 
$
134

 
$
21

 
 
Unrealized Gains (Losses) on Equity Securities in NDT Fund (C)
 
(209
)
 
N/A

 
N/A

 
 
Other-Than-Temporary-Impairments (OTTI)
 
—

 
(12
)
 
(28
)
 
 
Net Gains (Losses) on NDT Fund Investments
 
$
(139
)
 
$
122

 
$
(7
)
 
 
 
 
 
 
 
 
 
 

(A)
Includes activity in accounts related to the liquidation of funds being transitioned to new managers.
(B)
The cost of these securities was determined on the basis of specific identification.
(C)
Effective January 1, 2018, unrealized gains (losses) on equity securities are recorded in Net Income instead of Other Comprehensive Income (Loss).
The NDT Fund debt securities held as of December 31, 2018 had the following maturities:
 
 
 
 
 
 
Time Frame
 
Fair Value
 
 
 
 
Millions
 
 
Less than one year
 
$
13

 
 
1 - 5 years
 
254

 
 
6 - 10 years
 
211

 
 
11 - 15 years
 
40

 
 
16 - 20 years
 
77

 
 
Over 20 years
 
383

 
 
Total NDT Available-for-Sale Debt Securities
 
$
978

 
 
 
 
 
 

Power periodically assesses individual debt securities whose fair value is less than amortized cost to determine whether the investments are considered to be other-than-temporarily impaired. For these securities, management considers its intent to sell or requirement to sell a security prior to expected recovery. In those cases where a sale is expected, any impairment would be recorded through earnings. For fixed income securities where there is no intent to sell or likely requirement to sell, management evaluates whether credit loss is a component of the impairment. If so, that portion is recorded through earnings while the noncredit loss component is recorded through Accumulated Other Comprehensive Income (Loss). Any subsequent recoveries in the value of these securities would be recognized in Accumulated Other Comprehensive Income (Loss) unless the securities are sold, in which case, any gain would be recognized in income. The assessment of fair market value compared to cost is applied on a weighted average basis taking into account various purchase dates and initial cost of the securities.
Rabbi Trust
PSEG maintains certain unfunded nonqualified benefit plans to provide supplemental retirement and deferred compensation benefits to certain key employees. Certain assets related to these plans have been set aside in a grantor trust commonly known as a “Rabbi Trust.”
The following tables show the fair values, gross unrealized gains and losses and amortized cost basis for the securities held in the Rabbi Trust.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of December 31, 2018
 
 
 
 
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
 
 
 
 
Millions
 
 
Equity Securities
 
 
 
 
 
 
 
 
 
 
Domestic
 
$
22

 
$
1

 
$
—

 
$
23

 
 
International
 
—

 
—

 
—

 
—

 
 
Total Equity Securities
 
22

 
1

 
—

 
23

 
 
Available-for-Sale Debt Securities
 
 
 
 
 
 
 
 
 
 
  Government
 
110

 
1

 
(2
)
 
109

 
 
  Corporate
 
96

 
—

 
(4
)
 
92

 
 
Total Available-for-Sale Debt Securities
 
206

 
1

 
(6
)
 
201

 
 
Total Rabbi Trust Investments
 
$
228

 
$
2

 
$
(6
)
 
$
224

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of December 31, 2017
 
 
 
 
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
 
 
 
 
Millions
 
 
Equity Securities
 
 
 
 
 
 
 
 
 
 
Domestic
 
$
24

 
$
3

 
$
—

 
$
27

 
 
International
 
—

 
—

 
—

 
—

 
 
Total Equity Securities
 
24

 
3

 
—

 
27

 
 
Available-for-Sale Debt Securities
 
 
 
 
 
 
 
 
 
 
  Government
 
85

 
1

 
(1
)
 
85

 
 
  Corporate
 
118

 
2

 
(1
)
 
119

 
 
Total Available-for-Sale Debt Securities
 
203

 
3

 
(2
)
 
204

 
 
Total Rabbi Trust Investments
 
$
227

 
$
6

 
$
(2
)
 
$
231

 
 
 
 
 
 
 
 
 
 
 
 

Net unrealized gains (losses) on debt securities of $(4) million (after-tax) were included in Accumulated Other Comprehensive Loss on PSEG’s Consolidated Balance Sheet as of December 31, 2018. The portion of net unrealized gains (losses) recognized during 2018 related to equity securities still held at the end of December 31, 2018 was $(2) million.
The amounts in the preceding tables do not include receivables and payables for Rabbi Trust Fund transactions which have not settled at the end of each period. Such amounts are included in Accounts Receivable and Accounts Payable on the Consolidated Balance Sheets as shown in the following table.
 
 
 
 
 
 
 
 
 
 
As of December 31, 2018
 
As of December 31, 2017
 
 
 
 
Millions
 
 
Accounts Receivable
 
$
2

 
$
2

 
 
Accounts Payable
 
$
—

 
$
1

 
 
 
 
 
 
 
 

The following table shows the value of securities in the Rabbi Trust Fund that have been in an unrealized loss position for less than and greater than 12 months:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of December 31, 2018
 
As of December 31, 2017
 
 
 
 
Less Than 12
Months
 
Greater Than 12
Months
 
Less Than 12
Months
 
Greater Than 12
Months
 
 
 
 
Fair
Value
 
Gross
Unrealized
Losses
 
Fair
Value
 
Gross
Unrealized
Losses
 
Fair
Value
 
Gross
Unrealized
Losses
 
Fair
Value
 
Gross
Unrealized
Losses
 
 
 
 
Millions
 
 
Available-for-Sale Debt Securities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Government (A)
 
$
18

 
$
—

 
$
59

 
$
(2
)
 
$
28

 
$
—

 
$
25

 
$
(1
)
 
 
Corporate (B)
 
50

 
(3
)
 
29

 
(1
)
 
39

 
(1
)
 
9

 
—

 
 
Total Available-for-Sale Debt Securities
 
68

 
(3
)
 
88

 
(3
)
 
67

 
(1
)
 
34

 
(1
)
 
 
Rabbi Trust Investments
 
$
68

 
$
(3
)
 
$
88

 
$
(3
)
 
$
67

 
$
(1
)
 
$
34

 
$
(1
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

(A)
Debt Securities (Government)—Unrealized gains and losses on these securities are recorded in Accumulated Other Comprehensive Income (Loss). The unrealized losses on PSEG’s Rabbi Trust investments in U.S. Treasury obligations and Federal Agency mortgage-backed securities were caused by interest rate changes. These investments are guaranteed by the U.S. government or an agency of the U.S. government. PSEG also has investments in municipal bonds that are primarily in investment grade securities. It is not expected that these securities will settle for less than their amortized cost. Since PSEG does not intend to sell these securities nor will it be more-likely-than-not required to sell, PSEG does not consider these debt securities to be other-than-temporarily impaired as of December 31, 2018.
(B)
Debt Securities (Corporate)—Unrealized gains and losses on these securities are recorded in Accumulated Other Comprehensive Income (Loss). PSEG’s investments in corporate bonds are primarily in investment grade securities. It is not expected that these securities would settle for less than their amortized cost. Since PSEG does not intend to sell these securities nor will it be more-likely-than-not required to sell, PSEG does not consider these debt securities to be other-than-temporarily impaired as of December 31, 2018.
The proceeds from the sales of and the net gains (losses) on securities in the Rabbi Trust Fund were:
 
 
 
 
 
 
 
 
 
 
 
 
Years Ended December 31,
 
 
 
 
2018
 
2017
 
2016
 
 
 
 
Millions
 
 
Proceeds from Rabbi Trust Sales (A)
 
$
103

 
$
182

 
$
113

 
 
Net Realized Gains (Losses):
 
 
 
 
 
 
 
 
Gross Realized Gains
 
$
2

 
$
17

 
$
6

 
 
Gross Realized Losses
 
(4
)
 
(5
)
 
(5
)
 
 
Net Realized Gains (Losses) on Rabbi Trust (B)
 
(2
)
 
12

 
1

 
 
Unrealized Gains (Losses) on Equity Securities in Rabbi Trust (C)
 
(2
)
 
N/A

 
N/A

 
 
Net Gains (Losses) on Rabbi Trust Investments
 
$
(4
)
 
$
12

 
$
1

 
 
 
 
 
 
 
 
 
 

(A)
Includes activity in accounts related to the liquidation of funds being transitioned to new managers.
(B)
The cost of these securities was determined on the basis of specific identification.
(C)
Effective January 1, 2018, unrealized gains (losses) on equity securities are recorded in Net Income instead of Other Comprehensive Income (Loss).
The Rabbi Trust debt securities held as of December 31, 2018 had the following maturities:
 
 
 
 
 
 
Time Frame
 
Fair Value
 
 
 
 
Millions
 
 
Less than one year
 
$
1

 
 
1 - 5 years
 
35

 
 
6 - 10 years
 
27

 
 
11 - 15 years
 
8

 
 
16 - 20 years
 
21

 
 
Over 20 years
 
109

 
 
Total Rabbi Trust Available-for-Sale Debt Securities
 
$
201

 
 
 
 
 
 
 
PSEG periodically assesses individual debt securities whose fair value is less than amortized cost to determine whether the investments are considered to be other-than-temporarily impaired. For these securities, management considers its intent to sell or requirement to sell a security prior to expected recovery. In those cases where a sale is expected, any impairment would be recorded through earnings. For fixed income securities where there is no intent to sell or likely requirement to sell, management evaluates whether credit loss is a component of the impairment. If so, that portion is recorded through earnings while the noncredit loss component is recorded through Accumulated Other Comprehensive Income (Loss). The assessment of fair market value compared to cost is applied on a weighted average basis taking into account various purchase dates and initial cost of the securities. The fair value of the Rabbi Trust related to PSEG, PSE&G and Power are detailed as follows:
 
 
 
 
 
 
 
 
 
 
As of December 31,
 
As of December 31,
 
 
 
 
2018
 
2017
 
 
 
 
Millions
 
 
PSE&G
 
$
45

 
$
46

 
 
Power
 
56

 
57

 
 
Other
 
123

 
128

 
 
Total Rabbi Trust Investments
 
$
224

 
$
231