Debt and Credit Facilities

12 Months Ended

Dec. 31, 2018

Debt and Credit Facilities

Long-Term Debt




		As of December 31,
	Maturity	2018			2017
		Millions
PSEG
Term Loan:
Variable	2019	$	350		$	700
Variable	2020	700			—
Total Term Loan		1,050			700
Senior Notes:
1.60%	2019	400			400
2.00%	2021	300			300
2.65%	2022	700			700
Total Senior Notes		1,400			1,400
Principal Amount Outstanding		2,450			2,100
Amounts Due Within One Year		(750		)	—
Net Unamortized Discount and Debt Issuance Costs		(7		)	(9		)
Total Long-Term Debt of PSEG		$	1,693		$	2,091




		As of December 31,
	Maturity	2018			2017
		Millions
PSE&G
First and Refunding Mortgage Bonds (A):
9.25%	2021	$	134		$	134
8.00%	2037	7			7
5.00%	2037	8			8
Total First and Refunding Mortgage Bonds		149			149
Medium-Term Notes (MTNs) (A):
5.30%	2018	—			400
2.30%	2018	—			350
1.80%	2019	250			250
2.00%	2019	250			250
3.50%	2020	250			250
7.04%	2020	9			9
1.90%	2021	300			300
2.38%	2023	500			500
3.25%	2023	325			—
3.75%	2024	250			250
3.15%	2024	250			250
3.05%	2024	250			250
3.00%	2025	350			350
2.25%	2026	425			425
3.00%	2027	425			425
3.70%	2028	375			—
3.65%	2028	325			—
5.25%	2035	250			250
5.70%	2036	250			250
5.80%	2037	350			350
5.38%	2039	250			250
5.50%	2040	300			300
3.95%	2042	450			450
3.65%	2042	350			350
3.80%	2043	400			400
4.00%	2044	250			250
4.05%	2045	250			250
4.15%	2045	250			250
3.80%	2046	550			550
3.60%	2047	350			350
4.05%	2048	325			—
Total MTNs		9,109			8,509
Principal Amount Outstanding		9,258			8,658
Amounts Due Within One Year		(500		)	(750		)
Net Unamortized Discount and Debt Issuance Costs		(74		)	(67		)
Total Long-Term Debt of PSE&G		$	8,684		$	7,841




		As of December 31,
	Maturity	2018			2017
		Millions
Power
Senior Notes:
2.45%	2018	$	—		$	250
5.13%	2020	406			406
3.00%	2021	700			700
4.15%	2021	250			250
3.85%	2023	700			—
4.30%	2023	250			250
8.63%	2031	500			500
Total Senior Notes		2,806			2,356
Pollution Control Notes:
Floating Rate (B)	2019	44			44
Total Pollution Control Notes		44			44
Principal Amount Outstanding		2,850			2,400
Amounts Due Within One Year		(44		)	(250		)
Net Unamortized Discount and Debt Issuance Costs		(15		)	(14		)
Total Long-Term Debt of Power		$	2,791		$	2,136


(A)	Secured by essentially all property of PSE&G pursuant to its First and Refunding Mortgage.


(B)	The Pennsylvania Economic Development Authority (PEDFA) bond that is serviced and secured by Power Pollution Control Notes is a variable rate bond that is in weekly reset mode.

Long-Term Debt Maturities

The aggregate principal amounts of maturities for each of the five years following December 31, 2018 are as follows:




Year	PSEG		PSE&G		Power		Total

2019	$	750	$	500	$	44	$	1,294
2020	700		259		406		1,365
2021	300		434		950		1,684
2022	700		—		—		700
2023	—		825		950		1,775
Thereafter	—		7,240		500		7,740
Total	$	2,450	$	9,258	$	2,850	$	14,558

Long-Term Debt Financing Transactions

During 2018, PSEG and its subsidiaries had the following Long-Term Debt issuances, maturities and redemptions:

PSEG


•	entered into an agreement for a new term loan maturing November 2020. The term loan has a balance of $700 million at an interest rate of 1 month LIBOR + 0.60% and can be terminated at any time without penalty, and


•	redeemed $350 million of a $700 million term loan at an interest rate of 1 month LIBOR + 0.80% maturing June 2019.

PSE&G


•	issued $375 million of 3.70% Secured Medium-Term Notes, Series M, due May 2028,


•	issued $325 million of 4.05% Secured Medium-Term Notes, Series M, due May 2048,


•	issued $325 million of 3.25% Secured Medium-Term Notes, Series M, due September 2023,


•	issued $325 million of 3.65% Secured Medium-Term Notes, Series M, due September 2028,


•	retired $400 million of 5.30% Medium-Term Notes at maturity, and


•	retired $350 million of 2.30% Medium-Term Notes at maturity.

Power


•	issued $700 million of 3.85% Senior Notes due June 2023, and


•	retired $250 million of 2.45% Senior Notes at maturity.

Short-Term Liquidity

PSEG meets its short-term liquidity requirements, as well as those of Power, primarily with cash and through the issuance of commercial paper. PSE&G maintains its own separate commercial paper program to meet its short-term liquidity requirements. Each commercial paper program is fully back-stopped by its own separate credit facilities.

The commitments under the $4.2 billion credit facilities are provided by a diverse bank group. As of December 31, 2018, the total available credit capacity was $3.0 billion.

As of December 31, 2018, no single institution represented more than 9% of the total commitments in the credit facilities.

As of December 31, 2018, the total credit capacity was in excess of the anticipated maximum liquidity requirements over PSEG’s 12-month planning horizon.

Each of the credit facilities is restricted as to availability and use to the specific companies as listed in the following table; however, if necessary, the PSEG facilities can also be used to support our subsidiaries’ liquidity needs.

The total credit facilities and available liquidity as of December 31, 2018 were as follows:




	As of December 31, 2018
Company/Facility	Total Facility		Usage		Available Liquidity		Expiration Date	Primary Purpose
	Millions
PSEG
5-year Credit Facilities (A)	$	1,500	$	759	$	741	Mar 2022	Commercial Paper Support/Funding/Letters of Credit
Total PSEG	$	1,500	$	759	$	741
PSE&G
5-year Credit Facility (A)	$	600	$	288	$	312	Mar 2022	Commercial Paper Support/Funding/Letters of Credit
Total PSE&G	$	600	$	288	$	312
Power
3-year Letter of Credit Facilities	$	200	$	114	$	86	Sept 2021	Letters of Credit
5-year Credit Facilities	1,900		40		1,860		Mar 2022	Funding/Letters of Credit
Total Power	$	2,100	$	154	$	1,946
Total	$	4,200	$	1,201	$	2,999


(A)	The primary use of PSEG’s and PSE&G’s credit facilities is to support their respective Commercial Paper Programs under which as of December 31, 2018, PSEG had $744 million outstanding at a weighted average interest rate of 2.95%. PSE&G had $272 million outstanding at a weighted average interest rate of 2.96% under its Commercial Paper Program as of December 31, 2018.

Fair Value of Debt

The estimated fair values, carrying amounts and methods used to determine fair value of long-term debt as of December 31, 2018 and 2017 are included in the following table and accompanying notes as of December 31, 2018 and 2017. See Note 18. Fair Value Measurements for more information on fair value guidance and the hierarchy that prioritizes the inputs to fair value measurements into three levels.




	December 31, 2018				December 31, 2017
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
	Millions
Long-Term Debt:
PSEG (A) (B)	$	2,443	$	2,397	$	2,091	$	2,081
PSE&G (B)	9,184		9,374		8,591		9,322
Power (B)	2,835		2,996		2,386		2,659
Total Long-Term Debt	$	14,462	$	14,767	$	13,068	$	14,062


(A)	As of December 31, 2018 and 2017, fair value includes floating rate term loans of $1,050 million and $700 million, respectively. The fair value of the term loan debt (Level 2 measurement) approximates the carrying value because the interest payments are based on LIBOR rates that are reset monthly and the debt is redeemable at face value by PSEG at any time.

(B)

Given that these bonds do not trade actively, the fair value amounts of taxable debt securities (primarily Level 2 measurements) are generally determined by a valuation model that is based on a conventional discounted cash flow methodology and utilizes assumptions of current market pricing curves. In order to incorporate the credit risk into the discount rates, pricing is obtained (i.e. U.S. Treasury rate plus credit spread) based on expected new issue pricing across each of the companies’ respective debt maturity spectrum. The credit spreads of various tenors obtained from this information are added to the appropriate benchmark U.S. Treasury rates in order to determine the current market yields for the various tenors. The yields are then converted into discount rates of various tenors that are used for discounting the respective cash flows of the same tenor for each bond or note.

PSE&G [Member]

Debt Instrument [Line Items]

Schedule Of Consolidated Debt

Debt and Credit Facilities

Long-Term Debt




		As of December 31,
	Maturity	2018			2017
		Millions
PSEG
Term Loan:
Variable	2019	$	350		$	700
Variable	2020	700			—
Total Term Loan		1,050			700
Senior Notes:
1.60%	2019	400			400
2.00%	2021	300			300
2.65%	2022	700			700
Total Senior Notes		1,400			1,400
Principal Amount Outstanding		2,450			2,100
Amounts Due Within One Year		(750		)	—
Net Unamortized Discount and Debt Issuance Costs		(7		)	(9		)
Total Long-Term Debt of PSEG		$	1,693		$	2,091




		As of December 31,
	Maturity	2018			2017
		Millions
PSE&G
First and Refunding Mortgage Bonds (A):
9.25%	2021	$	134		$	134
8.00%	2037	7			7
5.00%	2037	8			8
Total First and Refunding Mortgage Bonds		149			149
Medium-Term Notes (MTNs) (A):
5.30%	2018	—			400
2.30%	2018	—			350
1.80%	2019	250			250
2.00%	2019	250			250
3.50%	2020	250			250
7.04%	2020	9			9
1.90%	2021	300			300
2.38%	2023	500			500
3.25%	2023	325			—
3.75%	2024	250			250
3.15%	2024	250			250
3.05%	2024	250			250
3.00%	2025	350			350
2.25%	2026	425			425
3.00%	2027	425			425
3.70%	2028	375			—
3.65%	2028	325			—
5.25%	2035	250			250
5.70%	2036	250			250
5.80%	2037	350			350
5.38%	2039	250			250
5.50%	2040	300			300
3.95%	2042	450			450
3.65%	2042	350			350
3.80%	2043	400			400
4.00%	2044	250			250
4.05%	2045	250			250
4.15%	2045	250			250
3.80%	2046	550			550
3.60%	2047	350			350
4.05%	2048	325			—
Total MTNs		9,109			8,509
Principal Amount Outstanding		9,258			8,658
Amounts Due Within One Year		(500		)	(750		)
Net Unamortized Discount and Debt Issuance Costs		(74		)	(67		)
Total Long-Term Debt of PSE&G		$	8,684		$	7,841




		As of December 31,
	Maturity	2018			2017
		Millions
Power
Senior Notes:
2.45%	2018	$	—		$	250
5.13%	2020	406			406
3.00%	2021	700			700
4.15%	2021	250			250
3.85%	2023	700			—
4.30%	2023	250			250
8.63%	2031	500			500
Total Senior Notes		2,806			2,356
Pollution Control Notes:
Floating Rate (B)	2019	44			44
Total Pollution Control Notes		44			44
Principal Amount Outstanding		2,850			2,400
Amounts Due Within One Year		(44		)	(250		)
Net Unamortized Discount and Debt Issuance Costs		(15		)	(14		)
Total Long-Term Debt of Power		$	2,791		$	2,136


(A)	Secured by essentially all property of PSE&G pursuant to its First and Refunding Mortgage.


(B)	The Pennsylvania Economic Development Authority (PEDFA) bond that is serviced and secured by Power Pollution Control Notes is a variable rate bond that is in weekly reset mode.

Long-Term Debt Maturities

The aggregate principal amounts of maturities for each of the five years following December 31, 2018 are as follows:




Year	PSEG		PSE&G		Power		Total

2019	$	750	$	500	$	44	$	1,294
2020	700		259		406		1,365
2021	300		434		950		1,684
2022	700		—		—		700
2023	—		825		950		1,775
Thereafter	—		7,240		500		7,740
Total	$	2,450	$	9,258	$	2,850	$	14,558

Long-Term Debt Financing Transactions

During 2018, PSEG and its subsidiaries had the following Long-Term Debt issuances, maturities and redemptions:

PSEG


•	entered into an agreement for a new term loan maturing November 2020. The term loan has a balance of $700 million at an interest rate of 1 month LIBOR + 0.60% and can be terminated at any time without penalty, and


•	redeemed $350 million of a $700 million term loan at an interest rate of 1 month LIBOR + 0.80% maturing June 2019.

PSE&G


•	issued $375 million of 3.70% Secured Medium-Term Notes, Series M, due May 2028,


•	issued $325 million of 4.05% Secured Medium-Term Notes, Series M, due May 2048,


•	issued $325 million of 3.25% Secured Medium-Term Notes, Series M, due September 2023,


•	issued $325 million of 3.65% Secured Medium-Term Notes, Series M, due September 2028,


•	retired $400 million of 5.30% Medium-Term Notes at maturity, and


•	retired $350 million of 2.30% Medium-Term Notes at maturity.

Power


•	issued $700 million of 3.85% Senior Notes due June 2023, and


•	retired $250 million of 2.45% Senior Notes at maturity.

Short-Term Liquidity

The commitments under the $4.2 billion credit facilities are provided by a diverse bank group. As of December 31, 2018, the total available credit capacity was $3.0 billion.

As of December 31, 2018, no single institution represented more than 9% of the total commitments in the credit facilities.

As of December 31, 2018, the total credit capacity was in excess of the anticipated maximum liquidity requirements over PSEG’s 12-month planning horizon.

The total credit facilities and available liquidity as of December 31, 2018 were as follows:




	As of December 31, 2018
Company/Facility	Total Facility		Usage		Available Liquidity		Expiration Date	Primary Purpose
	Millions
PSEG
5-year Credit Facilities (A)	$	1,500	$	759	$	741	Mar 2022	Commercial Paper Support/Funding/Letters of Credit
Total PSEG	$	1,500	$	759	$	741
PSE&G
5-year Credit Facility (A)	$	600	$	288	$	312	Mar 2022	Commercial Paper Support/Funding/Letters of Credit
Total PSE&G	$	600	$	288	$	312
Power
3-year Letter of Credit Facilities	$	200	$	114	$	86	Sept 2021	Letters of Credit
5-year Credit Facilities	1,900		40		1,860		Mar 2022	Funding/Letters of Credit
Total Power	$	2,100	$	154	$	1,946
Total	$	4,200	$	1,201	$	2,999


(A)	The primary use of PSEG’s and PSE&G’s credit facilities is to support their respective Commercial Paper Programs under which as of December 31, 2018, PSEG had $744 million outstanding at a weighted average interest rate of 2.95%. PSE&G had $272 million outstanding at a weighted average interest rate of 2.96% under its Commercial Paper Program as of December 31, 2018.

Fair Value of Debt




	December 31, 2018				December 31, 2017
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
	Millions
Long-Term Debt:
PSEG (A) (B)	$	2,443	$	2,397	$	2,091	$	2,081
PSE&G (B)	9,184		9,374		8,591		9,322
Power (B)	2,835		2,996		2,386		2,659
Total Long-Term Debt	$	14,462	$	14,767	$	13,068	$	14,062


(A)	As of December 31, 2018 and 2017, fair value includes floating rate term loans of $1,050 million and $700 million, respectively. The fair value of the term loan debt (Level 2 measurement) approximates the carrying value because the interest payments are based on LIBOR rates that are reset monthly and the debt is redeemable at face value by PSEG at any time.

(B)

Power [Member]

Debt Instrument [Line Items]

Schedule Of Consolidated Debt

Debt and Credit Facilities

Long-Term Debt




		As of December 31,
	Maturity	2018			2017
		Millions
PSEG
Term Loan:
Variable	2019	$	350		$	700
Variable	2020	700			—
Total Term Loan		1,050			700
Senior Notes:
1.60%	2019	400			400
2.00%	2021	300			300
2.65%	2022	700			700
Total Senior Notes		1,400			1,400
Principal Amount Outstanding		2,450			2,100
Amounts Due Within One Year		(750		)	—
Net Unamortized Discount and Debt Issuance Costs		(7		)	(9		)
Total Long-Term Debt of PSEG		$	1,693		$	2,091




		As of December 31,
	Maturity	2018			2017
		Millions
PSE&G
First and Refunding Mortgage Bonds (A):
9.25%	2021	$	134		$	134
8.00%	2037	7			7
5.00%	2037	8			8
Total First and Refunding Mortgage Bonds		149			149
Medium-Term Notes (MTNs) (A):
5.30%	2018	—			400
2.30%	2018	—			350
1.80%	2019	250			250
2.00%	2019	250			250
3.50%	2020	250			250
7.04%	2020	9			9
1.90%	2021	300			300
2.38%	2023	500			500
3.25%	2023	325			—
3.75%	2024	250			250
3.15%	2024	250			250
3.05%	2024	250			250
3.00%	2025	350			350
2.25%	2026	425			425
3.00%	2027	425			425
3.70%	2028	375			—
3.65%	2028	325			—
5.25%	2035	250			250
5.70%	2036	250			250
5.80%	2037	350			350
5.38%	2039	250			250
5.50%	2040	300			300
3.95%	2042	450			450
3.65%	2042	350			350
3.80%	2043	400			400
4.00%	2044	250			250
4.05%	2045	250			250
4.15%	2045	250			250
3.80%	2046	550			550
3.60%	2047	350			350
4.05%	2048	325			—
Total MTNs		9,109			8,509
Principal Amount Outstanding		9,258			8,658
Amounts Due Within One Year		(500		)	(750		)
Net Unamortized Discount and Debt Issuance Costs		(74		)	(67		)
Total Long-Term Debt of PSE&G		$	8,684		$	7,841




		As of December 31,
	Maturity	2018			2017
		Millions
Power
Senior Notes:
2.45%	2018	$	—		$	250
5.13%	2020	406			406
3.00%	2021	700			700
4.15%	2021	250			250
3.85%	2023	700			—
4.30%	2023	250			250
8.63%	2031	500			500
Total Senior Notes		2,806			2,356
Pollution Control Notes:
Floating Rate (B)	2019	44			44
Total Pollution Control Notes		44			44
Principal Amount Outstanding		2,850			2,400
Amounts Due Within One Year		(44		)	(250		)
Net Unamortized Discount and Debt Issuance Costs		(15		)	(14		)
Total Long-Term Debt of Power		$	2,791		$	2,136


(A)	Secured by essentially all property of PSE&G pursuant to its First and Refunding Mortgage.


(B)	The Pennsylvania Economic Development Authority (PEDFA) bond that is serviced and secured by Power Pollution Control Notes is a variable rate bond that is in weekly reset mode.

Long-Term Debt Maturities

The aggregate principal amounts of maturities for each of the five years following December 31, 2018 are as follows:




Year	PSEG		PSE&G		Power		Total

2019	$	750	$	500	$	44	$	1,294
2020	700		259		406		1,365
2021	300		434		950		1,684
2022	700		—		—		700
2023	—		825		950		1,775
Thereafter	—		7,240		500		7,740
Total	$	2,450	$	9,258	$	2,850	$	14,558

Long-Term Debt Financing Transactions

During 2018, PSEG and its subsidiaries had the following Long-Term Debt issuances, maturities and redemptions:

PSEG


•	entered into an agreement for a new term loan maturing November 2020. The term loan has a balance of $700 million at an interest rate of 1 month LIBOR + 0.60% and can be terminated at any time without penalty, and


•	redeemed $350 million of a $700 million term loan at an interest rate of 1 month LIBOR + 0.80% maturing June 2019.

PSE&G


•	issued $375 million of 3.70% Secured Medium-Term Notes, Series M, due May 2028,


•	issued $325 million of 4.05% Secured Medium-Term Notes, Series M, due May 2048,


•	issued $325 million of 3.25% Secured Medium-Term Notes, Series M, due September 2023,


•	issued $325 million of 3.65% Secured Medium-Term Notes, Series M, due September 2028,


•	retired $400 million of 5.30% Medium-Term Notes at maturity, and


•	retired $350 million of 2.30% Medium-Term Notes at maturity.

Power


•	issued $700 million of 3.85% Senior Notes due June 2023, and


•	retired $250 million of 2.45% Senior Notes at maturity.

Short-Term Liquidity

The commitments under the $4.2 billion credit facilities are provided by a diverse bank group. As of December 31, 2018, the total available credit capacity was $3.0 billion.

As of December 31, 2018, no single institution represented more than 9% of the total commitments in the credit facilities.

As of December 31, 2018, the total credit capacity was in excess of the anticipated maximum liquidity requirements over PSEG’s 12-month planning horizon.

The total credit facilities and available liquidity as of December 31, 2018 were as follows:




	As of December 31, 2018
Company/Facility	Total Facility		Usage		Available Liquidity		Expiration Date	Primary Purpose
	Millions
PSEG
5-year Credit Facilities (A)	$	1,500	$	759	$	741	Mar 2022	Commercial Paper Support/Funding/Letters of Credit
Total PSEG	$	1,500	$	759	$	741
PSE&G
5-year Credit Facility (A)	$	600	$	288	$	312	Mar 2022	Commercial Paper Support/Funding/Letters of Credit
Total PSE&G	$	600	$	288	$	312
Power
3-year Letter of Credit Facilities	$	200	$	114	$	86	Sept 2021	Letters of Credit
5-year Credit Facilities	1,900		40		1,860		Mar 2022	Funding/Letters of Credit
Total Power	$	2,100	$	154	$	1,946
Total	$	4,200	$	1,201	$	2,999


(A)	The primary use of PSEG’s and PSE&G’s credit facilities is to support their respective Commercial Paper Programs under which as of December 31, 2018, PSEG had $744 million outstanding at a weighted average interest rate of 2.95%. PSE&G had $272 million outstanding at a weighted average interest rate of 2.96% under its Commercial Paper Program as of December 31, 2018.

Fair Value of Debt




	December 31, 2018				December 31, 2017
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
	Millions
Long-Term Debt:
PSEG (A) (B)	$	2,443	$	2,397	$	2,091	$	2,081
PSE&G (B)	9,184		9,374		8,591		9,322
Power (B)	2,835		2,996		2,386		2,659
Total Long-Term Debt	$	14,462	$	14,767	$	13,068	$	14,062


(A)	As of December 31, 2018 and 2017, fair value includes floating rate term loans of $1,050 million and $700 million, respectively. The fair value of the term loan debt (Level 2 measurement) approximates the carrying value because the interest payments are based on LIBOR rates that are reset monthly and the debt is redeemable at face value by PSEG at any time.

(B)