Debt and Credit Facilities (Tables)

12 Months Ended

Dec. 31, 2019

Debt Disclosure [Abstract]

Long-Term Debt

Long-Term Debt

		As of December 31,
	Maturity	2019			2018
		Millions
PSEG
Term Loan:
Variable Rate	2019	$	—		$	350
Variable Rate	2020	700			700
Total Term Loan		700			1,050
Senior Notes:
1.60%	2019	—			400
2.00%	2021	300			300
2.65%	2022	700			700
2.88%	2024	750			—
Total Senior Notes		1,750			1,400
Principal Amount Outstanding		2,450			2,450
Amounts Due Within One Year		(700		)	(750		)
Net Unamortized Discount and Debt Issuance Costs		(9		)	(7		)
Total Long-Term Debt of PSEG		$	1,741		$	1,693

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		As of December 31,
	Maturity	2019			2018
		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):
1.80%	2019	—			250
2.00%	2019	—			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			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			375
3.65%	2028	325			325
3.20%	2029	375			—
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			325
3.85%	2049	375			—
3.20%	2049	400			—
Total MTNs		9,759			9,109
Principal Amount Outstanding		9,908			9,258
Amounts Due Within One Year		(259		)	(500		)
Net Unamortized Discount and Debt Issuance Costs		(81		)	(74		)
Total Long-Term Debt of PSE&G		$	9,568		$	8,684

 

		As of December 31,
	Maturity	2019			2018
		Millions
PSEG Power
Senior Notes:
5.13%	2020	$	406		$	406
3.00%	2021	700			700
4.15%	2021	250			250
3.85%	2023	700			700
4.30%	2023	250			250
8.63%	2031	500			500
Total Senior Notes		2,806			2,806
Pollution Control Notes:
Floating Rate (B)	2022	44			44
Total Pollution Control Notes		44			44
Principal Amount Outstanding		2,850			2,850
Amounts Due Within One Year		(406		)	(44		)
Net Unamortized Discount and Debt Issuance Costs		(10		)	(15		)
Total Long-Term Debt of PSEG Power		$	2,434		$	2,791

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

(B)

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

Aggregate Principal Amounts Of Maturities

The aggregate principal amounts of maturities for each of the five years following December 31, 2019 are as follows:

Year	PSEG		PSE&G		PSEG Power		Total
2020	$	700	$	259	$	406	$	1,365
2021	300		434		950		1,684
2022	700		—		44		744
2023	—		825		950		1,775
2024	750		750		—		1,500
Thereafter	—		7,640		500		8,140
Total	$	2,450	$	9,908	$	2,850	$	15,208

Short-Term Liquidity

total credit facilities and available liquidity as of December 31, 2019 were as follows:

	As of December 31, 2019
Company/Facility	Total Facility		Usage (D)		Available Liquidity		Expiration Date	Primary Purpose
	Millions
PSEG
5-year Credit Facilities (A)	$	1,500	$	796	$	704	Mar 2023	Commercial Paper Support/Funding/Letters of Credit
Total PSEG	$	1,500	$	796	$	704
PSE&G
5-year Credit Facility (B)	$	600	$	379	$	221	Mar 2023	Commercial Paper Support/Funding/Letters of Credit
Total PSE&G	$	600	$	379	$	221
PSEG Power
3-year Letter of Credit Facilities	$	200	$	121	$	79	Sept 2021	Letters of Credit
5-year Credit Facilities (C)	1,900		40		1,860		Mar 2023	Funding/Letters of Credit
Total PSEG Power	$	2,100	$	161	$	1,939
Total	$	4,200	$	1,336	$	2,864

(A)PSEG facilities will be reduced by $9 million in March 2022.

(B) PSE&G facility will be reduced by $4 million in March 2022.

(C) PSEG Power facilities will be reduced by $12 million in March 2022.

(D)

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, 2019, PSEG had $753 million outstanding at a weighted average interest rate of 2.08%. PSE&G had $362 million outstanding at a weighted average interest rate of 1.95% under its Commercial Paper Program as of December 31, 2019.

Estimated Fair Values

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, 2019 and 2018 are included in the following table and accompanying notes as of December 31, 2019 and 2018. See Note 19. 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, 2019				December 31, 2018
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
	Millions
Long-Term Debt:
PSEG (A) (B)	$	2,441	$	2,479	$	2,443	$	2,397
PSE&G (B)	9,827		11,107		9,184		9,374
PSEG Power (B)	2,840		3,137		2,835		2,996
Total Long-Term Debt	$	15,108	$	16,723	$	14,462	$	14,767

(A) As of December 31, 2019 and 2018, fair value includes floating rate term loans of $700 million and $1,050 million, respectively. The fair values of the term loan debt (Level 2 measurement) approximate 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 (i.e. U.S. Treasury rate plus credit spread) is 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. The fair value amounts above do not represent the price at which the outstanding debt may be called for redemption by each issuer under their respective debt agreements.