Trust Investments

Nuclear Decommissioning Trust (NDT) Fund

PSEG Power maintains an external master NDT to fund its share of decommissioning costs for its five nuclear facilities upon their respective termination of operation. The trust contains two separate funds: a qualified fund and a non-qualified fund. Section 468A of the Internal Revenue Code limits the amount of money that can be contributed into a qualified fund. The funds are managed by third-party investment managers who operate under investment guidelines developed by PSEG Power.

The following tables show the fair values and gross unrealized gains and losses for the securities held in the NDT Fund.




	As of June 30, 2020
	Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	Millions
Equity Securities
Domestic	$	436	$	244	$	(11	)	$	669
International	395		79		(26		)	448
Total Equity Securities	831		323		(37		)	1,117
Available-for-Sale Debt Securities
Government	513		33		—			546
Corporate	554		35		(2		)	587
Total Available-for-Sale Debt Securities	1,067		68		(2		)	1,133
Total NDT Fund Investments (A)	$	1,898	$	391	$	(39	)	$	2,250


(A)	The NDT Fund Investments table excludes foreign currency of $1 million as of June 30, 2020, which is part of the NDT Fund.




	As of December 31, 2019
	Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	Millions
Equity Securities
Domestic	$	425	$	238	$	(4	)	$	659
International	400		103		(11		)	492
Total Equity Securities	825		341		(15		)	1,151
Available-for-Sale Debt Securities
Government	563		16		(2		)	577
Corporate	470		17		(1		)	486
Total Available-for-Sale Debt Securities	1,033		33		(3		)	1,063
Total NDT Fund Investments (A)	$	1,858	$	374	$	(18	)	$	2,214


(A)	The NDT Fund Investments table excludes foreign currency of $2 million as of December 31, 2019, which is part of the NDT Fund.

Net unrealized gains (losses) on debt securities of $38 million (after-tax) were included in Accumulated Other Comprehensive Loss on PSEG’s and PSEG Power’s Condensed Consolidated Balance Sheets as of June 30, 2020. An impairment of debt securities of $(3) million was included in Net Gains (Losses) on Trust Investments on PSEG Power’s Condensed Consolidated Statement of Operations for the six months ended June 30, 2020. The portion of net unrealized gains (losses) recognized during the second quarter and first half of 2020 related to equity securities still held as of June 30, 2020 was $172 million and $(1) million, respectively.

The amounts in the preceding tables do not include receivables and payables for NDT Fund transactions which have not settled at the end of each period. Such amounts are included in Accounts Receivable and Accounts Payable on the Condensed Consolidated Balance Sheets as shown in the following table.




	As of		As of
	June 30, 2020		December 31, 2019
	Millions
Accounts Receivable	$	13	$	11
Accounts Payable	$	17	$	11

The following table shows the value of securities in the NDT Fund that have been in an unrealized loss position for less than and greater than 12 months.




	As of June 30, 2020										As of December 31, 2019
	Less Than 12 Months					Greater Than 12 Months					Less Than 12 Months					Greater Than 12 Months
	Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses
	Millions
Equity Securities (A)
Domestic	$	53	$	(7	)	$	5	$	(4	)	$	21	$	(1	)	$	6	$	(3	)
International	77		(15		)	23		(11		)	28		(2		)	34		(9		)
Total Equity Securities	130		(22		)	28		(15		)	49		(3		)	40		(12		)
Available-for-Sale Debt Securities
Government (B)	19		—			1		—			99		(2		)	30		—
Corporate (C)	46		(2		)	9		—			49		—			12		(1		)
Total Available-for-Sale Debt Securities	65		(2		)	10		—			148		(2		)	42		(1		)
NDT Trust Investments	$	195	$	(24	)	$	38	$	(15	)	$	197	$	(5	)	$	82	$	(13	)


(A)	Equity Securities—Investments in marketable equity securities within the NDT Fund are primarily in common stocks within a broad range of industries and sectors. Unrealized gains and losses on these securities are recorded in Net Income.

(B)

Debt Securities (Government)—Unrealized gains and losses on these securities are recorded in Accumulated Other Comprehensive Income (Loss). The unrealized losses on PSEG Power’s NDT investments in U.S. Treasury obligations and Federal Agency mortgage-backed securities were caused by interest rate changes. PSEG Power also has investments in municipal bonds. It is not expected that these securities will settle for less than their amortized cost. PSEG Power does not intend to sell these securities nor will it be more-likely-than-not required to sell before recovery of their amortized cost. PSEG Power did not recognize credit losses for U.S. Treasury obligations and Federal Agency mortgage-backed securities because these investments are guaranteed by the U.S. government or an agency of the U.S. government. PSEG Power did not recognize credit losses for municipal bonds because they are primarily investment grade securities.

(C)

Debt Securities (Corporate)—Unrealized gains and losses on these securities are recorded in Accumulated Other Comprehensive Income (Loss). Unrealized losses were due to market declines. It is not expected that these securities would settle for less than their amortized cost. PSEG Power does not intend to sell these securities nor will it be more-likely-than-not required to sell before recovery of their amortized cost. PSEG Power did not recognize credit losses for these corporate bonds because they are primarily investment grade securities.

The proceeds from the sales of and the net gains (losses) on securities in the NDT Fund were:




	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2020			2019			2020			2019
	Millions
Proceeds from NDT Fund Sales (A)	$	493		$	427		$	1,048		$	880
Net Realized Gains (Losses) on NDT Fund
Gross Realized Gains	$	32		$	18		$	70		$	63
Gross Realized Losses	(20		)	(13		)	(54		)	(32		)
Net Realized Gains (Losses) on NDT Fund (B)	$	12		$	5		$	16		$	31
Unrealized Gains (Losses) on Equity Securities	182			33			(39		)	132
Impairment of Available-for-Sale Debt Securities (C)	—			—			(3		)	—
Net Gains (Losses) on NDT Fund Investments	$	194		$	38		$	(26	)	$	163

(A)Includes activity in accounts related to the liquidation of funds being transitioned to new managers.

(B)The cost of these securities was determined on the basis of specific identification.


(C)	PSEG Power recognized an impairment of available-for-sale debt securities that it intends to sell. PSEG Power’s policy is to sell all such securities that are rated below investment grade.

The NDT Fund debt securities held as of June 30, 2020 had the following maturities:




Time Frame	Fair Value
	Millions
Less than one year	$	23
1 - 5 years	257
6 - 10 years	220
11 - 15 years	75
16 - 20 years	71
Over 20 years	487
Total NDT Available-for-Sale Debt Securities	$	1,133

PSEG Power periodically assesses individual debt securities whose fair value is less than amortized cost to determine whether the investments are impaired. For these securities, management considers its intent to sell or requirement to sell a security prior to expected recovery. In those cases where a sale is expected, any impairment would be recorded through earnings. For fixed income securities where there is no intent to sell or likely requirement to sell, management evaluates whether credit loss is a component of the impairment. If so, that portion is recorded through earnings while the noncredit loss component is recorded through Accumulated Other Comprehensive Income (Loss). Any subsequent recoveries of the noncredit loss component of the impairment would be recorded through Accumulated Other Comprehensive Income (Loss). Any subsequent recoveries of the credit loss component would be recognized through earnings. The assessment of fair market value compared to cost is applied on a weighted average basis taking into account various purchase dates and initial cost of the securities.

Rabbi Trust

PSEG maintains certain unfunded nonqualified benefit plans to provide supplemental retirement and deferred compensation benefits to certain key employees. Certain assets related to these plans have been set aside in a grantor trust commonly known as a “Rabbi Trust.”

The following tables show the fair values, gross unrealized gains and losses and amortized cost basis for the securities held in the Rabbi Trust.




	As of June 30, 2020
	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	Millions
Domestic Equity Securities	$	21	$	5	$	—	$	26
Available-for-Sale Debt Securities
Government	87		10		—		97
Corporate	125		11		—		136
Total Available-for-Sale Debt Securities	212		21		—		233
Total Rabbi Trust Investments	$	233	$	26	$	—	$	259




	As of December 31, 2019
	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	Millions
Domestic Equity Securities	$	21	$	7	$	—	$	28
Available-for-Sale Debt Securities
Government	100		4		—		104
Corporate	107		7		—		114
Total Available-for-Sale Debt Securities	207		11		—		218
Total Rabbi Trust Investments	$	228	$	18	$	—	$	246

Net unrealized gains (losses) on debt securities of $15 million (after-tax) were included in Accumulated Other Comprehensive Loss on PSEG’s Condensed Consolidated Balance Sheet as of June 30, 2020. The portion of net unrealized gains (losses) recognized during the second quarter and first half of 2020 related to equity securities still held as of June 30, 2020 was $4 million and $(1) million, respectively.

The amounts in the preceding tables do not include receivables and payables for Rabbi Trust Fund transactions which have not settled at the end of each period. Such amounts are included in Accounts Receivable and Accounts Payable on the Condensed Consolidated Balance Sheets as shown in the following table.




	As of		As of
	June 30, 2020		December 31, 2019
	Millions
Accounts Receivable	$	1	$	2
Accounts Payable	$	—	$	—

The following table shows the value of securities in the Rabbi Trust Fund that have been in an unrealized loss position for less than 12 months and greater than 12 months.




	As of June 30, 2020								As of December 31, 2019
	Less Than 12 Months				Greater Than 12 Months				Less Than 12 Months				Greater Than 12 Months
	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
	Millions
Available-for-Sale Debt Securities
Government (A)	$	6	$	—	$	1	$	—	$	26	$	—	$	3	$	—
Corporate (B)	9		—		1		—		11		—		2		—
Total Available-for-Sale Debt Securities	15		—		2		—		37		—		5		—
Rabbi Trust Investments	$	15	$	—	$	2	$	—	$	37	$	—	$	5	$	—

(A)

Debt Securities (Government)—Unrealized gains and losses on these securities are recorded in Accumulated Other Comprehensive Income (Loss). The unrealized losses on PSEG’s Rabbi Trust investments in U.S. Treasury obligations and Federal Agency mortgage-backed securities were caused by interest rate changes. PSEG also has investments in municipal bonds. It is not expected that these securities will settle for less than their amortized cost. PSEG does not intend to sell these securities nor will it be more-likely-than-not required to sell before recovery of their amortized cost. PSEG did not recognize credit losses for U.S. Treasury obligations and Federal Agency mortgage-backed securities because these investments are guaranteed by the U.S. government or an agency of the U.S. government. PSEG did not recognize credit losses for municipal bonds because they are primarily investment grade securities.

(B)

Debt Securities (Corporate)—Unrealized gains and losses on these securities are recorded in Accumulated Other Comprehensive Income (Loss). Unrealized losses were due to market declines. It is not expected that these securities would settle for less than their amortized cost. PSEG does not intend to sell these securities nor will it be more-likely-than-not required to sell before recovery of their amortized cost. PSEG did not recognize credit losses for these corporate bonds because they are primarily investment grade.

The proceeds from the sales of and the net gains (losses) on securities in the Rabbi Trust Fund were:




	Three Months Ended					Six Months Ended
	June 30,					June 30,
	2020			2019		2020			2019
	Millions
Proceeds from Rabbi Trust Sales (A)	$	61		$	42	$	115		$	86
Net Realized Gains (Losses) on Rabbi Trust:
Gross Realized Gains	$	5		$	1	$	10		$	2
Gross Realized Losses	(2		)	—		(3		)	(1		)
Net Realized Gains (Losses) on Rabbi Trust (B)	3			1		7			1
Unrealized Gains (Losses) on Equity Securities	4			—		(1		)	3
Net Gains (Losses) on Rabbi Trust Investments	$	7		$	1	$	6		$	4

(A)Includes activity in accounts related to the liquidation of funds being transitioned to new managers.

(B)The cost of these securities was determined on the basis of specific identification.

The Rabbi Trust debt securities held as of June 30, 2020 had the following maturities:




Time Frame	Fair Value
	Millions
Less than one year	$	1
1 - 5 years	32
6 - 10 years	32
11 - 15 years	16
16 - 20 years	32
Over 20 years	120
Total Rabbi Trust Available-for-Sale Debt Securities	$	233

PSEG periodically assesses individual debt securities whose fair value is less than amortized cost to determine whether the investments are considered to be impaired. For these securities, management considers its intent to sell or requirement to sell a security prior to expected recovery. In those cases where a sale is expected, any impairment would be recorded through earnings. For fixed income securities where there is no intent to sell or likely requirement to sell, management evaluates whether credit loss is a component of the impairment. If so, that portion is recorded through earnings while the noncredit loss component is recorded through Accumulated Other Comprehensive Income (Loss). Any subsequent recoveries of the noncredit loss component of the impairment would be recorded through Accumulated Other Comprehensive Income (Loss). Any subsequent recoveries of the credit loss component would be recognized through earnings. The assessment of fair market value compared to cost is applied on a weighted average basis taking into account various purchase dates and initial cost of the securities.

The fair value of the Rabbi Trust related to PSEG, PSE&G and PSEG Power are detailed as follows:




	As of		As of
	June 30, 2020		December 31, 2019
	Millions
PSE&G	$	50	$	48
PSEG Power	65		62
Other	144		136
Total Rabbi Trust Investments	$	259	$	246

Schedule of Trust Investments [Line Items]

Trust Investments

Nuclear Decommissioning Trust (NDT) Fund

PSEG Power maintains an external master NDT to fund its share of decommissioning costs for its five nuclear facilities upon their respective termination of operation. The trust contains two separate funds: a qualified fund and a non-qualified fund. Section 468A of the Internal Revenue Code limits the amount of money that can be contributed into a qualified fund. The funds are managed by third-party investment managers who operate under investment guidelines developed by PSEG Power.

The following tables show the fair values and gross unrealized gains and losses for the securities held in the NDT Fund.




	As of June 30, 2020
	Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	Millions
Equity Securities
Domestic	$	436	$	244	$	(11	)	$	669
International	395		79		(26		)	448
Total Equity Securities	831		323		(37		)	1,117
Available-for-Sale Debt Securities
Government	513		33		—			546
Corporate	554		35		(2		)	587
Total Available-for-Sale Debt Securities	1,067		68		(2		)	1,133
Total NDT Fund Investments (A)	$	1,898	$	391	$	(39	)	$	2,250


(A)	The NDT Fund Investments table excludes foreign currency of $1 million as of June 30, 2020, which is part of the NDT Fund.




	As of December 31, 2019
	Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	Millions
Equity Securities
Domestic	$	425	$	238	$	(4	)	$	659
International	400		103		(11		)	492
Total Equity Securities	825		341		(15		)	1,151
Available-for-Sale Debt Securities
Government	563		16		(2		)	577
Corporate	470		17		(1		)	486
Total Available-for-Sale Debt Securities	1,033		33		(3		)	1,063
Total NDT Fund Investments (A)	$	1,858	$	374	$	(18	)	$	2,214


(A)	The NDT Fund Investments table excludes foreign currency of $2 million as of December 31, 2019, which is part of the NDT Fund.

Net unrealized gains (losses) on debt securities of $38 million (after-tax) were included in Accumulated Other Comprehensive Loss on PSEG’s and PSEG Power’s Condensed Consolidated Balance Sheets as of June 30, 2020. An impairment of debt securities of $(3) million was included in Net Gains (Losses) on Trust Investments on PSEG Power’s Condensed Consolidated Statement of Operations for the six months ended June 30, 2020. The portion of net unrealized gains (losses) recognized during the second quarter and first half of 2020 related to equity securities still held as of June 30, 2020 was $172 million and $(1) million, respectively.

The amounts in the preceding tables do not include receivables and payables for NDT Fund transactions which have not settled at the end of each period. Such amounts are included in Accounts Receivable and Accounts Payable on the Condensed Consolidated Balance Sheets as shown in the following table.




	As of		As of
	June 30, 2020		December 31, 2019
	Millions
Accounts Receivable	$	13	$	11
Accounts Payable	$	17	$	11

The following table shows the value of securities in the NDT Fund that have been in an unrealized loss position for less than and greater than 12 months.




	As of June 30, 2020										As of December 31, 2019
	Less Than 12 Months					Greater Than 12 Months					Less Than 12 Months					Greater Than 12 Months
	Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses
	Millions
Equity Securities (A)
Domestic	$	53	$	(7	)	$	5	$	(4	)	$	21	$	(1	)	$	6	$	(3	)
International	77		(15		)	23		(11		)	28		(2		)	34		(9		)
Total Equity Securities	130		(22		)	28		(15		)	49		(3		)	40		(12		)
Available-for-Sale Debt Securities
Government (B)	19		—			1		—			99		(2		)	30		—
Corporate (C)	46		(2		)	9		—			49		—			12		(1		)
Total Available-for-Sale Debt Securities	65		(2		)	10		—			148		(2		)	42		(1		)
NDT Trust Investments	$	195	$	(24	)	$	38	$	(15	)	$	197	$	(5	)	$	82	$	(13	)


(A)	Equity Securities—Investments in marketable equity securities within the NDT Fund are primarily in common stocks within a broad range of industries and sectors. Unrealized gains and losses on these securities are recorded in Net Income.

(B)

Debt Securities (Government)—Unrealized gains and losses on these securities are recorded in Accumulated Other Comprehensive Income (Loss). The unrealized losses on PSEG Power’s NDT investments in U.S. Treasury obligations and Federal Agency mortgage-backed securities were caused by interest rate changes. PSEG Power also has investments in municipal bonds. It is not expected that these securities will settle for less than their amortized cost. PSEG Power does not intend to sell these securities nor will it be more-likely-than-not required to sell before recovery of their amortized cost. PSEG Power did not recognize credit losses for U.S. Treasury obligations and Federal Agency mortgage-backed securities because these investments are guaranteed by the U.S. government or an agency of the U.S. government. PSEG Power did not recognize credit losses for municipal bonds because they are primarily investment grade securities.

(C)

Debt Securities (Corporate)—Unrealized gains and losses on these securities are recorded in Accumulated Other Comprehensive Income (Loss). Unrealized losses were due to market declines. It is not expected that these securities would settle for less than their amortized cost. PSEG Power does not intend to sell these securities nor will it be more-likely-than-not required to sell before recovery of their amortized cost. PSEG Power did not recognize credit losses for these corporate bonds because they are primarily investment grade securities.

The proceeds from the sales of and the net gains (losses) on securities in the NDT Fund were:




	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2020			2019			2020			2019
	Millions
Proceeds from NDT Fund Sales (A)	$	493		$	427		$	1,048		$	880
Net Realized Gains (Losses) on NDT Fund
Gross Realized Gains	$	32		$	18		$	70		$	63
Gross Realized Losses	(20		)	(13		)	(54		)	(32		)
Net Realized Gains (Losses) on NDT Fund (B)	$	12		$	5		$	16		$	31
Unrealized Gains (Losses) on Equity Securities	182			33			(39		)	132
Impairment of Available-for-Sale Debt Securities (C)	—			—			(3		)	—
Net Gains (Losses) on NDT Fund Investments	$	194		$	38		$	(26	)	$	163

(A)Includes activity in accounts related to the liquidation of funds being transitioned to new managers.

(B)The cost of these securities was determined on the basis of specific identification.


(C)	PSEG Power recognized an impairment of available-for-sale debt securities that it intends to sell. PSEG Power’s policy is to sell all such securities that are rated below investment grade.

The NDT Fund debt securities held as of June 30, 2020 had the following maturities:




Time Frame	Fair Value
	Millions
Less than one year	$	23
1 - 5 years	257
6 - 10 years	220
11 - 15 years	75
16 - 20 years	71
Over 20 years	487
Total NDT Available-for-Sale Debt Securities	$	1,133

PSEG Power periodically assesses individual debt securities whose fair value is less than amortized cost to determine whether the investments are impaired. For these securities, management considers its intent to sell or requirement to sell a security prior to expected recovery. In those cases where a sale is expected, any impairment would be recorded through earnings. For fixed income securities where there is no intent to sell or likely requirement to sell, management evaluates whether credit loss is a component of the impairment. If so, that portion is recorded through earnings while the noncredit loss component is recorded through Accumulated Other Comprehensive Income (Loss). Any subsequent recoveries of the noncredit loss component of the impairment would be recorded through Accumulated Other Comprehensive Income (Loss). Any subsequent recoveries of the credit loss component would be recognized through earnings. The assessment of fair market value compared to cost is applied on a weighted average basis taking into account various purchase dates and initial cost of the securities.

Rabbi Trust

PSEG maintains certain unfunded nonqualified benefit plans to provide supplemental retirement and deferred compensation benefits to certain key employees. Certain assets related to these plans have been set aside in a grantor trust commonly known as a “Rabbi Trust.”

The following tables show the fair values, gross unrealized gains and losses and amortized cost basis for the securities held in the Rabbi Trust.




	As of June 30, 2020
	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	Millions
Domestic Equity Securities	$	21	$	5	$	—	$	26
Available-for-Sale Debt Securities
Government	87		10		—		97
Corporate	125		11		—		136
Total Available-for-Sale Debt Securities	212		21		—		233
Total Rabbi Trust Investments	$	233	$	26	$	—	$	259




	As of December 31, 2019
	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	Millions
Domestic Equity Securities	$	21	$	7	$	—	$	28
Available-for-Sale Debt Securities
Government	100		4		—		104
Corporate	107		7		—		114
Total Available-for-Sale Debt Securities	207		11		—		218
Total Rabbi Trust Investments	$	228	$	18	$	—	$	246

Net unrealized gains (losses) on debt securities of $15 million (after-tax) were included in Accumulated Other Comprehensive Loss on PSEG’s Condensed Consolidated Balance Sheet as of June 30, 2020. The portion of net unrealized gains (losses) recognized during the second quarter and first half of 2020 related to equity securities still held as of June 30, 2020 was $4 million and $(1) million, respectively.

The amounts in the preceding tables do not include receivables and payables for Rabbi Trust Fund transactions which have not settled at the end of each period. Such amounts are included in Accounts Receivable and Accounts Payable on the Condensed Consolidated Balance Sheets as shown in the following table.




	As of		As of
	June 30, 2020		December 31, 2019
	Millions
Accounts Receivable	$	1	$	2
Accounts Payable	$	—	$	—

The following table shows the value of securities in the Rabbi Trust Fund that have been in an unrealized loss position for less than 12 months and greater than 12 months.




	As of June 30, 2020								As of December 31, 2019
	Less Than 12 Months				Greater Than 12 Months				Less Than 12 Months				Greater Than 12 Months
	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
	Millions
Available-for-Sale Debt Securities
Government (A)	$	6	$	—	$	1	$	—	$	26	$	—	$	3	$	—
Corporate (B)	9		—		1		—		11		—		2		—
Total Available-for-Sale Debt Securities	15		—		2		—		37		—		5		—
Rabbi Trust Investments	$	15	$	—	$	2	$	—	$	37	$	—	$	5	$	—

(A)

Debt Securities (Government)—Unrealized gains and losses on these securities are recorded in Accumulated Other Comprehensive Income (Loss). The unrealized losses on PSEG’s Rabbi Trust investments in U.S. Treasury obligations and Federal Agency mortgage-backed securities were caused by interest rate changes. PSEG also has investments in municipal bonds. It is not expected that these securities will settle for less than their amortized cost. PSEG does not intend to sell these securities nor will it be more-likely-than-not required to sell before recovery of their amortized cost. PSEG did not recognize credit losses for U.S. Treasury obligations and Federal Agency mortgage-backed securities because these investments are guaranteed by the U.S. government or an agency of the U.S. government. PSEG did not recognize credit losses for municipal bonds because they are primarily investment grade securities.

(B)

Debt Securities (Corporate)—Unrealized gains and losses on these securities are recorded in Accumulated Other Comprehensive Income (Loss). Unrealized losses were due to market declines. It is not expected that these securities would settle for less than their amortized cost. PSEG does not intend to sell these securities nor will it be more-likely-than-not required to sell before recovery of their amortized cost. PSEG did not recognize credit losses for these corporate bonds because they are primarily investment grade.

The proceeds from the sales of and the net gains (losses) on securities in the Rabbi Trust Fund were:




	Three Months Ended					Six Months Ended
	June 30,					June 30,
	2020			2019		2020			2019
	Millions
Proceeds from Rabbi Trust Sales (A)	$	61		$	42	$	115		$	86
Net Realized Gains (Losses) on Rabbi Trust:
Gross Realized Gains	$	5		$	1	$	10		$	2
Gross Realized Losses	(2		)	—		(3		)	(1		)
Net Realized Gains (Losses) on Rabbi Trust (B)	3			1		7			1
Unrealized Gains (Losses) on Equity Securities	4			—		(1		)	3
Net Gains (Losses) on Rabbi Trust Investments	$	7		$	1	$	6		$	4

(A)Includes activity in accounts related to the liquidation of funds being transitioned to new managers.

(B)The cost of these securities was determined on the basis of specific identification.

The Rabbi Trust debt securities held as of June 30, 2020 had the following maturities:




Time Frame	Fair Value
	Millions
Less than one year	$	1
1 - 5 years	32
6 - 10 years	32
11 - 15 years	16
16 - 20 years	32
Over 20 years	120
Total Rabbi Trust Available-for-Sale Debt Securities	$	233

PSEG periodically assesses individual debt securities whose fair value is less than amortized cost to determine whether the investments are considered to be impaired. For these securities, management considers its intent to sell or requirement to sell a security prior to expected recovery. In those cases where a sale is expected, any impairment would be recorded through earnings. For fixed income securities where there is no intent to sell or likely requirement to sell, management evaluates whether credit loss is a component of the impairment. If so, that portion is recorded through earnings while the noncredit loss component is recorded through Accumulated Other Comprehensive Income (Loss). Any subsequent recoveries of the noncredit loss component of the impairment would be recorded through Accumulated Other Comprehensive Income (Loss). Any subsequent recoveries of the credit loss component would be recognized through earnings. The assessment of fair market value compared to cost is applied on a weighted average basis taking into account various purchase dates and initial cost of the securities.

The fair value of the Rabbi Trust related to PSEG, PSE&G and PSEG Power are detailed as follows:




	As of		As of
	June 30, 2020		December 31, 2019
	Millions
PSE&G	$	50	$	48
PSEG Power	65		62
Other	144		136
Total Rabbi Trust Investments	$	259	$	246