XML 81 R52.htm IDEA: XBRL DOCUMENT

Financial Risk Management Activities (Tables)

12 Months Ended

Dec. 31, 2020

Disclosure Financial Risk Management Activities [Abstract]

Schedule Of Derivative Instruments Fair Value In Balance Sheets



	As of December 31, 2020
	PSEG Power (A)						Consolidated
	Not Designated
Balance Sheet Location	Energy- Related Contracts		Netting (B)		Total PSEG Power		Total Derivatives
	Millions
Derivative Contracts
Current Assets	$	464	$	(404)	$	60	$	60
Noncurrent Assets	93		(84)		9		9
Total Mark-to-Market Derivative Assets	$	557	$	(488)	$	69	$	69
Derivative Contracts
Current Liabilities	$	(412)	$	391	$	(21)	$	(21)
Noncurrent Liabilities	(109)		105		(4)		(4)
Total Mark-to-Market Derivative (Liabilities)	$	(521)	$	496	$	(25)	$	(25)
Total Net Mark-to-Market Derivative Assets (Liabilities)	$	36	$	8	$	44	$	44



	As of December 31, 2019
	PSEG Power (A)						PSEG (A)			Consolidated
	Not Designated							Cash Flow Hedges
Balance Sheet Location	Energy- Related Contracts		Netting (B)		Total PSEG Power			Interest Rate Swaps			Total Derivatives
	Millions
Derivative Contracts
Current Assets	$	636	$	(523)	$	113		$	—		$	113
Noncurrent Assets	163		(139)		24			—			24
Total Mark-to-Market Derivative Assets	$	799	$	(662)	$	137		$	—		$	137
Derivative Contracts
Current Liabilities	$	(553)	$	522	$	(31)		$	(5)		$	(36)
Noncurrent Liabilities	(139)		138		(1)			—			(1)
Total Mark-to-Market Derivative (Liabilities)	$	(692)	$	660	$	(32)		$	(5)		$	(37)
Total Net Mark-to-Market Derivative Assets (Liabilities)	$	107	$	(2)	$	105		$	(5)		$	100

(A) Substantially all of PSEG Power’s and PSEG’s derivative instruments are contracts subject to master netting agreements. Contracts not subject to master netting or similar agreements are immaterial and did not have any collateral posted or received as of December 31, 2020 and 2019.

(B) Represents the netting of fair value balances with the same counterparty (where the right of offset exists) and the application of cash collateral. All cash collateral (received) posted that has been allocated to derivative positions, where the right of offset exists, has been offset on the Consolidated Balance Sheets. As of December 31, 2020 and 2019, PSEG Power had net cash collateral payments to counterparties of $54 million and $44 million, respectively. Of these net cash collateral (receipts) payments, $8 million as of December 31, 2020 and $(2) million as of December 31, 2019 were netted against the corresponding net derivative contract positions. Of the $8 million as of December 31, 2020, $(13) million was netted against current assets, and $21 million was netted against noncurrent liabilities. Of the $(2) million as of December 31, 2019, $(1) million was netted against current assets and $(1) million was netted against noncurrent assets.

Schedule Of Derivative Instruments Designated As Cash Flow Hedges

The following shows the effect on the Consolidated Statements of Operations and on Accumulated Other Comprehensive Loss (AOCL) of derivative instruments designated as cash flow hedges for the years ended December 31, 2020, 2019 and 2018.



	Amount of Pre-Tax Gain (Loss) Recognized in AOCL on Derivatives						Location of Pre-Tax Gain (Loss) Reclassified from AOCL into Income	Amount of Pre-Tax Gain (Loss) Reclassified from AOCL into Income
Derivatives in Cash Flow Hedging Relationships	Years Ended December 31,							Years Ended December 31,
	2020		2019		2018			2020		2019		2018
	Millions							Millions
PSEG
Interest Rate Swaps	$	(6)	$	(23)	$	(2)	Interest Expense	$	(14)	$	(4)	$	—
Total PSEG	$	(6)	$	(23)	$	(2)		$	(14)	$	(4)	$	—

Schedule Of Reconciliation For Derivative Activity Included In Accumulated Other Comprehensive Loss

The following reconciles the Accumulated Other Comprehensive Income (Loss) for derivative activity included in the AOCL of PSEG on a pre-tax and after-tax basis.



Accumulated Other Comprehensive Income (Loss)	Pre-Tax		After-Tax
	Millions
Balance as of December 31, 2018	$	(2)	$	(1)
Loss Recognized in AOCI	(23)		(17)
Less: Loss Reclassified into Income	4		3
Balance as of December 31, 2019	$	(21)	$	(15)
Loss Recognized in AOCI	(6)		(4)
Less: Loss Reclassified into Income	14		10
Balance as of December 31, 2020	$	(13)	$	(9)

Schedule Of Derivative Instruments Not Designated As Hedging Instruments And Impact On Results Of Operations

The following shows the effect on the Consolidated Statements of Operations of derivative instruments not designated as hedging instruments or as NPNS for the years ended December 31, 2020, 2019 and 2018. PSEG Power’s derivative contracts reflected in this table include contracts to hedge the purchase and sale of electricity and natural gas, and the purchase of fuel. The table does not include contracts that PSEG Power has designated as NPNS, such as its BGS contracts and certain other energy supply contracts that it has with other utilities and companies with retail load.



Derivatives Not Designated as Hedges	Location of Pre-Tax Gain (Loss) Recognized in Income on Derivatives	Pre-Tax Gain (Loss) Recognized in Income on Derivatives
		Years Ended December 31,
		2020		2019		2018
		Millions
PSEG Power
Energy-Related Contracts	Operating Revenues	$	279	$	560	$	(182)
Energy-Related Contracts	Energy Costs	(142)		(119)		(9)
Total PSEG and PSEG Power		$	137	$	441	$	(191)

Schedule Of Gross Volume, On Absolute Value Basis For Derivative Contracts

The following table summarizes the net notional volume purchases/(sales) of open derivative transactions by commodity as of December 31, 2020 and 2019.



Type	Notional	Total	PSEG	PSEG Power	PSE&G
	Millions
As of December 31, 2020
Natural Gas	Dekatherm (Dth)	321	—	321	—
Electricity	MWh	(66)	—	(66)	—
Financial Transmission Rights (FTRs)	MWh	20	—	20	—

As of December 31, 2019
Natural Gas	Dth	341	—	341	—
Electricity	MWh	(62)	—	(62)	—
FTRs	MWh	13	—	13	—
Interest Rate Swaps	U.S. Dollars	700	700	—	—

Schedule Providing Credit Risk From Others, Net Of Collateral



Rating	Current Exposure		Securities held as Collateral		Net Exposure		Number of Counterparties >10%	Net Exposure of Counterparties >10% (A)
	Millions							Millions
Investment Grade	$	337	$	39	$	298	1	$	169
Non-Investment Grade	40		—		40		1	40
Total	$	377	$	39	$	338	2	$	209

(A)Represents net exposure of $169 million with PSE&G and $40 million with a non-affiliated counterparty.

- Definition

Tabular disclosure of credit derivatives which includes information by sellers of credit derivatives, about each credit derivative, or each group of similar credit derivatives, including (a) the nature of the credit derivative - its term, how it arose, the events or circumstances that would require the seller to perform under the credit derivative, and the current status of the payment/performance risk of the credit derivative; (b) the maximum potential amount of future payments (undiscounted) the seller could be required to make under the credit derivative; (c) the current fair value of the credit derivative; and (d) the nature of any recourse provisions under the credit derivative, and any assets held either as collateral or by third parties. A credit derivative is a derivative instrument (1) in which one or more of its underlyings are related to the credit risk of a specified entity (or a group of entities) or an index based on the credit risk of a group of entities and (2) that exposes the seller to potential loss from credit-risk-related events specified in the contract. Examples of credit derivatives within the scope of this paragraph include, but are not limited to, credit default swaps, credit spread options, and credit index products; also includes a hybrid instrument that has an embedded credit derivative (for example, but not limited to, a credit-linked note).

+ References + Details