Financial Information By Business Segments

Financial Information by Business Segment

Basis of Organization

PSEG’s, PSE&G’s and PSEG Power’s operating segments were determined by management in accordance with GAAP. These segments were determined based on how management measures performance based on segment Net Income, as illustrated in the following table, and how resources are allocated to each business. PSEG’s reportable segments are PSE&G and PSEG Power. PSE&G and PSEG Power each represent a single reportable segment and therefore no separate segment information is provided for these Registrants.

PSE&G

PSE&G earns revenues from its tariffs, under which it provides electric transmission and electric and gas distribution services to residential, commercial and industrial customers in New Jersey. The rates charged for electric transmission are regulated by FERC while the rates charged for electric and gas distribution are regulated by the BPU. Revenues are also earned from several other activities such as solar investments, sundry sales, the appliance service business, wholesale transmission services and other miscellaneous services.

PSEG Power

PSEG Power earns revenues by selling energy, capacity and ancillary services on a wholesale basis under contract to power marketers and to load-serving entities and by bidding energy, capacity and ancillary services into the markets for these products. A significant portion of PSEG Power’s revenue is obtained from the various ISOs in which PSEG Power operates. The ISOs act similarly to a clearing house for all of its members in that all revenues paid out are collected from market participants based on their consumption of energy and energy-related products. PSEG Power also enters into bilateral contracts for energy, capacity, FTRs, gas, emission allowances and other energy-related contracts to optimize the value of its portfolio of generating assets and its electric and gas supply obligations. In addition, PSEG Power’s Salem 1, Salem 2 and Hope Creek nuclear plants receive ZEC revenue from the EDCs in New Jersey including PSE&G.

Other

This category includes amounts applicable to Energy Holdings and PSEG LI, which are below the quantitative threshold for separate disclosure as reportable segments. Other also includes amounts applicable to PSEG (parent corporation) and Services.




	PSE&G		PSEG Power		Other (A)			Eliminations (B)			Consolidated Total
	Millions
Year Ended December 31, 2019
Operating Revenues	$	6,625	$	4,385	$	549		$	(1,483	)	$	10,076
Depreciation and Amortization	837		377		34			—			1,248
Operating Income (Loss)	1,469		448		26			—			1,943
Income from Equity Method Investments	—		14		—			—			14
Interest Income	18		7		6			(5		)	26
Interest Expense	361		119		94			(5		)	569
Income (Loss) before Income Taxes	1,343		671		(64		)	—			1,950
Income Tax Expense (Benefit)	93		203		(39		)	—			257
Net Income (Loss) (C)	$	1,250	$	468	$	(25	)	$	—		$	1,693
Gross Additions to Long-Lived Assets	$	2,542	$	607	$	17		$	—		$	3,166
As of December 31, 2019
Total Assets	$	33,266	$	12,805	$	2,715		$	(1,056	)	$	47,730
Investments in Equity Method Subsidiaries	$	—	$	66	$	1		$	—		$	67




	PSE&G		PSEG Power		Other (A)		Eliminations (B)			Consolidated Total
	Millions
Year Ended December 31, 2018
Operating Revenues	$	6,471	$	4,146	$	571	$	(1,492	)	$	9,696
Depreciation and Amortization	770		354		34		—			1,158
Operating Income (Loss)	1,606		596		96		—			2,298
Income from Equity Method Investments	—		15		—		—			15
Interest Income	21		5		9		(6		)	29
Interest Expense	333		76		73		(6		)	476
Income (Loss) before Income Taxes	1,411		431		13		—			1,855
Income Tax Expense (Benefit)	344		66		7		—			417
Net Income (Loss)	$	1,067	$	365	$	6	$	—		$	1,438
Gross Additions to Long-Lived Assets	$	2,896	$	996	$	20	$	—		$	3,912
As of December 31, 2018
Total Assets	$	31,109	$	12,594	$	2,604	$	(981	)	$	45,326
Investments in Equity Method Subsidiaries	$	—	$	86	$	—	$	—		$	86




	PSE&G		PSEG Power			Other (A)			Eliminations (B)			Consolidated Total
	Millions
Year Ended December 31, 2017
Operating Revenues	$	6,324	$	3,860		$	466		$	(1,556	)	$	9,094
Depreciation and Amortization	685		1,268			33			—			1,986
Operating Income (Loss)	1,760		(367		)	36			—			1,429
Income from Equity Method Investments	—		14			—			—			14
Interest Income	24		3			5			(2		)	30
Interest Expense	303		50			40			(2		)	391
Income (Loss) before Income Taxes	1,536		(250		)	(18		)	—			1,268
Income Tax Expense (Benefit)	563		(729		)	(140		)	—			(306		)
Net Income (Loss)	$	973	$	479		$	122		$	—		$	1,574
Gross Additions to Long-Lived Assets	$	2,919	$	1,231		$	40		$	—		$	4,190
As of December 31, 2017
Total Assets	$	28,554	$	12,418		$	2,666		$	(922	)	$	42,716
Investments in Equity Method Subsidiaries	$	—	$	87		$	—		$	—		$	87


(A)	Includes amounts applicable to Energy Holdings and PSEG LI, which are below the quantitative threshold for separate disclosure as reportable segments. Other also includes amounts applicable to PSEG (parent corporation) and Services.


(B)	Intercompany eliminations primarily relate to intercompany transactions between PSE&G and PSEG Power. For a further discussion of the intercompany transactions between PSE&G and PSEG Power, see Note 26. Related-Party Transactions.

(C)

Includes an after-tax loss of $286 million related to the sale of PSEG Power’s ownership interests in the Keystone and Conemaugh generation plants. See Note 4. Early Plant Retirements/Asset Dispositions for additional information.

Segment Reporting Information [Line Items]

Financial Information By Business Segments

Financial Information by Business Segment

Basis of Organization

PSEG’s, PSE&G’s and PSEG Power’s operating segments were determined by management in accordance with GAAP. These segments were determined based on how management measures performance based on segment Net Income, as illustrated in the following table, and how resources are allocated to each business. PSEG’s reportable segments are PSE&G and PSEG Power. PSE&G and PSEG Power each represent a single reportable segment and therefore no separate segment information is provided for these Registrants.

PSE&G

PSE&G earns revenues from its tariffs, under which it provides electric transmission and electric and gas distribution services to residential, commercial and industrial customers in New Jersey. The rates charged for electric transmission are regulated by FERC while the rates charged for electric and gas distribution are regulated by the BPU. Revenues are also earned from several other activities such as solar investments, sundry sales, the appliance service business, wholesale transmission services and other miscellaneous services.

PSEG Power

PSEG Power earns revenues by selling energy, capacity and ancillary services on a wholesale basis under contract to power marketers and to load-serving entities and by bidding energy, capacity and ancillary services into the markets for these products. A significant portion of PSEG Power’s revenue is obtained from the various ISOs in which PSEG Power operates. The ISOs act similarly to a clearing house for all of its members in that all revenues paid out are collected from market participants based on their consumption of energy and energy-related products. PSEG Power also enters into bilateral contracts for energy, capacity, FTRs, gas, emission allowances and other energy-related contracts to optimize the value of its portfolio of generating assets and its electric and gas supply obligations. In addition, PSEG Power’s Salem 1, Salem 2 and Hope Creek nuclear plants receive ZEC revenue from the EDCs in New Jersey including PSE&G.

Other

This category includes amounts applicable to Energy Holdings and PSEG LI, which are below the quantitative threshold for separate disclosure as reportable segments. Other also includes amounts applicable to PSEG (parent corporation) and Services.




	PSE&G		PSEG Power		Other (A)			Eliminations (B)			Consolidated Total
	Millions
Year Ended December 31, 2019
Operating Revenues	$	6,625	$	4,385	$	549		$	(1,483	)	$	10,076
Depreciation and Amortization	837		377		34			—			1,248
Operating Income (Loss)	1,469		448		26			—			1,943
Income from Equity Method Investments	—		14		—			—			14
Interest Income	18		7		6			(5		)	26
Interest Expense	361		119		94			(5		)	569
Income (Loss) before Income Taxes	1,343		671		(64		)	—			1,950
Income Tax Expense (Benefit)	93		203		(39		)	—			257
Net Income (Loss) (C)	$	1,250	$	468	$	(25	)	$	—		$	1,693
Gross Additions to Long-Lived Assets	$	2,542	$	607	$	17		$	—		$	3,166
As of December 31, 2019
Total Assets	$	33,266	$	12,805	$	2,715		$	(1,056	)	$	47,730
Investments in Equity Method Subsidiaries	$	—	$	66	$	1		$	—		$	67




	PSE&G		PSEG Power		Other (A)		Eliminations (B)			Consolidated Total
	Millions
Year Ended December 31, 2018
Operating Revenues	$	6,471	$	4,146	$	571	$	(1,492	)	$	9,696
Depreciation and Amortization	770		354		34		—			1,158
Operating Income (Loss)	1,606		596		96		—			2,298
Income from Equity Method Investments	—		15		—		—			15
Interest Income	21		5		9		(6		)	29
Interest Expense	333		76		73		(6		)	476
Income (Loss) before Income Taxes	1,411		431		13		—			1,855
Income Tax Expense (Benefit)	344		66		7		—			417
Net Income (Loss)	$	1,067	$	365	$	6	$	—		$	1,438
Gross Additions to Long-Lived Assets	$	2,896	$	996	$	20	$	—		$	3,912
As of December 31, 2018
Total Assets	$	31,109	$	12,594	$	2,604	$	(981	)	$	45,326
Investments in Equity Method Subsidiaries	$	—	$	86	$	—	$	—		$	86




	PSE&G		PSEG Power			Other (A)			Eliminations (B)			Consolidated Total
	Millions
Year Ended December 31, 2017
Operating Revenues	$	6,324	$	3,860		$	466		$	(1,556	)	$	9,094
Depreciation and Amortization	685		1,268			33			—			1,986
Operating Income (Loss)	1,760		(367		)	36			—			1,429
Income from Equity Method Investments	—		14			—			—			14
Interest Income	24		3			5			(2		)	30
Interest Expense	303		50			40			(2		)	391
Income (Loss) before Income Taxes	1,536		(250		)	(18		)	—			1,268
Income Tax Expense (Benefit)	563		(729		)	(140		)	—			(306		)
Net Income (Loss)	$	973	$	479		$	122		$	—		$	1,574
Gross Additions to Long-Lived Assets	$	2,919	$	1,231		$	40		$	—		$	4,190
As of December 31, 2017
Total Assets	$	28,554	$	12,418		$	2,666		$	(922	)	$	42,716
Investments in Equity Method Subsidiaries	$	—	$	87		$	—		$	—		$	87


(A)	Includes amounts applicable to Energy Holdings and PSEG LI, which are below the quantitative threshold for separate disclosure as reportable segments. Other also includes amounts applicable to PSEG (parent corporation) and Services.


(B)	Intercompany eliminations primarily relate to intercompany transactions between PSE&G and PSEG Power. For a further discussion of the intercompany transactions between PSE&G and PSEG Power, see Note 26. Related-Party Transactions.

(C)

Includes an after-tax loss of $286 million related to the sale of PSEG Power’s ownership interests in the Keystone and Conemaugh generation plants. See Note 4. Early Plant Retirements/Asset Dispositions for additional information.