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Related-Party Transactions

9 Months Ended

Sep. 30, 2019

The following discussion relates to intercompany transactions, which are eliminated during the PSEG consolidation process in accordance with GAAP.

PSE&G

The financial statements for PSE&G include transactions with related parties presented as follows:




	Three Months Ended				Nine Months Ended
	September 30,				September 30,
Related-Party Transactions	2019		2018		2019		2018
	Millions
Billings from Affiliates:
Net Billings from PSEG Power (A)	$	220	$	229	$	1,099	$	1,079
Administrative Billings from Services (B)	72		78		227		246
Total Billings from Affiliates	$	292	$	307	$	1,326	$	1,325




	As of		As of
Related-Party Transactions	September 30, 2019		December 31, 2018
	Millions
Receivable from PSEG (C)	$	12	$	123
Payable to PSEG Power (A)	$	152	$	245
Payable to Services (B)	56		76
Accounts Payable—Affiliated Companies	$	208	$	321
Working Capital Advances to Services (D)	$	33	$	33
Long-Term Accrued Taxes Payable	$	103	$	69

PSEG Power

The financial statements for PSEG Power include transactions with related parties presented as follows:




	Three Months Ended				Nine Months Ended
	September 30,				September 30,
Related-Party Transactions	2019		2018		2019		2018
	Millions
Billings to Affiliates:
Net Billings to PSE&G (A)	$	220	$	229	$	1,099	$	1,079
Billings from Affiliates:
Administrative Billings from Services (B)	$	41	$	38	$	132	$	113




	As of		As of
Related-Party Transactions	September 30, 2019		December 31, 2018
	Millions
Receivable from PSE&G (A)	$	152	$	245
Receivable from PSEG (C)	81		29
Accounts Receivable—Affiliated Companies	$	233	$	274
Payable to Services (B)	$	20	$	16
Accounts Payable—Affiliated Companies	$	20	$	16
Short-Term Loan to (from) Affiliate (E)	$	86	$	(193	)
Working Capital Advances to Services (D)	$	17	$	17
Long-Term Accrued Taxes Payable	$	101	$	76

(A)

PSE&G has entered into a requirements contract with PSEG Power under which PSEG Power provides the gas supply services needed to meet PSE&G’s BGSS and other contractual requirements. PSEG Power has also entered into contracts to supply energy, capacity and ancillary services to PSE&G through the BGS auction process and sells ZECs to PSE&G under the ZEC program. The rates in the BGS and BGSS contracts and for the ZEC sales are prescribed by the BPU. BGS and BGSS sales are billed and settled on a monthly basis. ZEC sales are billed on a monthly basis and settled annually following completion of each energy year. In addition, PSEG Power and PSE&G provide certain technical services for each other generally at cost in compliance with FERC and BPU affiliate rules.


(B)	Services provides and bills administrative services to PSE&G and PSEG Power at cost. In addition, PSE&G and PSEG Power have other payables to Services, including amounts related to certain common costs, such as pension and OPEB costs, which Services pays on behalf of each of the operating companies.

(C)

PSEG files a consolidated federal income tax return with its affiliated companies. A tax allocation agreement exists between PSEG and each of its affiliated companies. The general operation of these agreements is that the subsidiary company will compute its taxable income on a stand-alone basis. If the result is a net tax liability, such amount shall be paid to PSEG. If there are net operating losses and/or tax credits, the subsidiary shall receive payment for the tax savings from PSEG to the extent that PSEG is able to utilize those benefits.


(D)	PSE&G and PSEG Power have advanced working capital to Services. The amounts are included in Other Noncurrent Assets on PSE&G’s and PSEG Power’s Condensed Consolidated Balance Sheets.

(E)

PSEG Power’s short-term loans with PSEG are for working capital and other short-term needs. Interest Income and Interest Expense relating to these short-term funding activities were immaterial.

Public Service Electric and Gas Company [Member]

Related-Party Transactions

The following discussion relates to intercompany transactions, which are eliminated during the PSEG consolidation process in accordance with GAAP.

PSE&G

The financial statements for PSE&G include transactions with related parties presented as follows:




	Three Months Ended				Nine Months Ended
	September 30,				September 30,
Related-Party Transactions	2019		2018		2019		2018
	Millions
Billings from Affiliates:
Net Billings from PSEG Power (A)	$	220	$	229	$	1,099	$	1,079
Administrative Billings from Services (B)	72		78		227		246
Total Billings from Affiliates	$	292	$	307	$	1,326	$	1,325




	As of		As of
Related-Party Transactions	September 30, 2019		December 31, 2018
	Millions
Receivable from PSEG (C)	$	12	$	123
Payable to PSEG Power (A)	$	152	$	245
Payable to Services (B)	56		76
Accounts Payable—Affiliated Companies	$	208	$	321
Working Capital Advances to Services (D)	$	33	$	33
Long-Term Accrued Taxes Payable	$	103	$	69

PSEG Power

The financial statements for PSEG Power include transactions with related parties presented as follows:




	Three Months Ended				Nine Months Ended
	September 30,				September 30,
Related-Party Transactions	2019		2018		2019		2018
	Millions
Billings to Affiliates:
Net Billings to PSE&G (A)	$	220	$	229	$	1,099	$	1,079
Billings from Affiliates:
Administrative Billings from Services (B)	$	41	$	38	$	132	$	113




	As of		As of
Related-Party Transactions	September 30, 2019		December 31, 2018
	Millions
Receivable from PSE&G (A)	$	152	$	245
Receivable from PSEG (C)	81		29
Accounts Receivable—Affiliated Companies	$	233	$	274
Payable to Services (B)	$	20	$	16
Accounts Payable—Affiliated Companies	$	20	$	16
Short-Term Loan to (from) Affiliate (E)	$	86	$	(193	)
Working Capital Advances to Services (D)	$	17	$	17
Long-Term Accrued Taxes Payable	$	101	$	76

(A)


(B)	Services provides and bills administrative services to PSE&G and PSEG Power at cost. In addition, PSE&G and PSEG Power have other payables to Services, including amounts related to certain common costs, such as pension and OPEB costs, which Services pays on behalf of each of the operating companies.

(C)


(D)	PSE&G and PSEG Power have advanced working capital to Services. The amounts are included in Other Noncurrent Assets on PSE&G’s and PSEG Power’s Condensed Consolidated Balance Sheets.

(E)

PSEG Power’s short-term loans with PSEG are for working capital and other short-term needs. Interest Income and Interest Expense relating to these short-term funding activities were immaterial.

PSEG Power [Member]

Related-Party Transactions

The following discussion relates to intercompany transactions, which are eliminated during the PSEG consolidation process in accordance with GAAP.

PSE&G

The financial statements for PSE&G include transactions with related parties presented as follows:




	Three Months Ended				Nine Months Ended
	September 30,				September 30,
Related-Party Transactions	2019		2018		2019		2018
	Millions
Billings from Affiliates:
Net Billings from PSEG Power (A)	$	220	$	229	$	1,099	$	1,079
Administrative Billings from Services (B)	72		78		227		246
Total Billings from Affiliates	$	292	$	307	$	1,326	$	1,325




	As of		As of
Related-Party Transactions	September 30, 2019		December 31, 2018
	Millions
Receivable from PSEG (C)	$	12	$	123
Payable to PSEG Power (A)	$	152	$	245
Payable to Services (B)	56		76
Accounts Payable—Affiliated Companies	$	208	$	321
Working Capital Advances to Services (D)	$	33	$	33
Long-Term Accrued Taxes Payable	$	103	$	69

PSEG Power

The financial statements for PSEG Power include transactions with related parties presented as follows:




	Three Months Ended				Nine Months Ended
	September 30,				September 30,
Related-Party Transactions	2019		2018		2019		2018
	Millions
Billings to Affiliates:
Net Billings to PSE&G (A)	$	220	$	229	$	1,099	$	1,079
Billings from Affiliates:
Administrative Billings from Services (B)	$	41	$	38	$	132	$	113




	As of		As of
Related-Party Transactions	September 30, 2019		December 31, 2018
	Millions
Receivable from PSE&G (A)	$	152	$	245
Receivable from PSEG (C)	81		29
Accounts Receivable—Affiliated Companies	$	233	$	274
Payable to Services (B)	$	20	$	16
Accounts Payable—Affiliated Companies	$	20	$	16
Short-Term Loan to (from) Affiliate (E)	$	86	$	(193	)
Working Capital Advances to Services (D)	$	17	$	17
Long-Term Accrued Taxes Payable	$	101	$	76

(A)


(B)	Services provides and bills administrative services to PSE&G and PSEG Power at cost. In addition, PSE&G and PSEG Power have other payables to Services, including amounts related to certain common costs, such as pension and OPEB costs, which Services pays on behalf of each of the operating companies.

(C)


(D)	PSE&G and PSEG Power have advanced working capital to Services. The amounts are included in Other Noncurrent Assets on PSE&G’s and PSEG Power’s Condensed Consolidated Balance Sheets.

(E)

PSEG Power’s short-term loans with PSEG are for working capital and other short-term needs. Interest Income and Interest Expense relating to these short-term funding activities were immaterial.