Goodwill And Other Intangibles

12 Months Ended

Dec. 31, 2019

Goodwill [Line Items]

Goodwill And Other Intangibles

Goodwill and Other Intangibles

As of December 31, 2018, PSEG Power had goodwill of $16 million. PSEG Power conducts a review for goodwill impairment in the fourth quarter of each year. In 2019, PSEG Power determined its fair value using a market-based enterprise valuation technique. Based on the results of the annual impairment test, PSEG Power’s entire goodwill was determined to be impaired. As such, PSEG Power recorded an impairment loss of $16 million in O&M Expense. The decrease in the fair value was primarily due to the continued decline in wholesale power market pricing.

In addition to goodwill, as of December 31, 2019 and 2018, PSEG Power had intangible assets of $149 million and $143 million, respectively, related to emissions allowances and RECs. Emissions allowances and RECs are recorded at cost and evaluated for impairment at least annually. Emissions expense includes impairments of emissions allowances, if any, and costs for emissions, which is recorded as emissions occur. As load is served under contracts requiring energy from renewable sources, the related expense is recorded. The changes to PSEG Power’s intangible assets during 2018 and 2019 are as follows:

	Emissions Allowances			RECs			Total Other Intangibles
	Millions
Balance as of January 1, 2018	$	74		$	40		$	114
Retirements	(26		)	(90		)	(116		)
Purchases	36			110			146
Sales and Transfers, net	—			(1		)	(1		)
Balance as of December 31, 2018	$	84		$	59		$	143
Retirements	(6		)	(83		)	(89		)
Purchases	26			72			98
Sales and Transfers, net	—			(3		)	(3		)
Balance as of December 31, 2019	$	104		$	45		$	149

PSEG Power LLC

Goodwill [Line Items]

Goodwill And Other Intangibles

Goodwill and Other Intangibles

As of December 31, 2018, PSEG Power had goodwill of $16 million. PSEG Power conducts a review for goodwill impairment in the fourth quarter of each year. In 2019, PSEG Power determined its fair value using a market-based enterprise valuation technique. Based on the results of the annual impairment test, PSEG Power’s entire goodwill was determined to be impaired. As such, PSEG Power recorded an impairment loss of $16 million in O&M Expense. The decrease in the fair value was primarily due to the continued decline in wholesale power market pricing.

In addition to goodwill, as of December 31, 2019 and 2018, PSEG Power had intangible assets of $149 million and $143 million, respectively, related to emissions allowances and RECs. Emissions allowances and RECs are recorded at cost and evaluated for impairment at least annually. Emissions expense includes impairments of emissions allowances, if any, and costs for emissions, which is recorded as emissions occur. As load is served under contracts requiring energy from renewable sources, the related expense is recorded. The changes to PSEG Power’s intangible assets during 2018 and 2019 are as follows:

	Emissions Allowances			RECs			Total Other Intangibles
	Millions
Balance as of January 1, 2018	$	74		$	40		$	114
Retirements	(26		)	(90		)	(116		)
Purchases	36			110			146
Sales and Transfers, net	—			(1		)	(1		)
Balance as of December 31, 2018	$	84		$	59		$	143
Retirements	(6		)	(83		)	(89		)
Purchases	26			72			98
Sales and Transfers, net	—			(3		)	(3		)
Balance as of December 31, 2019	$	104		$	45		$	149