Discontinued Operations And Dispositions

6 Months Ended

Jun. 30, 2011

Discontinued Operations And Dispositions

Note 4. Discontinued Operations and Dispositions

Discontinued Operations

Power

In March 2011, Power completed the sale of its 1,000 MW gas-fired Guadalupe generating facility for a total purchase price of $352 million, resulting in an after-tax gain of $54 million.

In July 2011, Power completed the sale of its 1,000 MW gas-fired Odessa generating facility for approximately $335 million, resulting in an after-tax gain of approximately $25 million. The closing of the Odessa sale completes the Texas asset sale process announced by Power in early 2011.

PSEG Texas' operating results for the three months and six months ended June 30, 2011 and 2010, which were reclassified to Discontinued Operations, are summarized below:

	Three Months Ended, June 30,				Six Months Ended, June 30,
	2011		2010		2011		2010
	Millions
Operating Revenues	$	29	$	94	$	92	$	201
Income (Loss ) Before Income Taxes	$	2	$	6	$	20	$	(6	)
Net Income (Loss)	$	2	$	2	$	13	$	(5	)

The carrying amounts of PSEG Texas' assets and liabilities as of June 30, 2011 and December 31, 2010 are summarized in the following table:

	As of June 30,		As of December 31,
	2011		2010
	Millions
Current Assets	$	16	$	28
Noncurrent Assets		278		536
Total Assets of Discontinued Operations	$	294	$	564
Current Liabilities	$	15	$	28
Noncurrent Liabilities		36		44
Total Liabilities of Discontinued Operations	$	51	$	72

Dispositions

Leveraged Leases

During the first six months of 2010, Energy Holdings sold its interest in three leveraged leases, including two international leases for which the IRS has indicated its intention to disallow certain tax deductions taken in prior years.

	Three Months Ended June 30,		Six Months Ended June 30,
	2010		2010
Proceeds from Sales	$	55	$	161
Gain on Sales, after-tax	$	4	$	12

Proceeds from the sales of the international leases were used to reduce the tax exposure related to these lease investments. For additional information see Note 8. Commitments and Contingent Liabilities.

Power [Member]

Discontinued Operations And Dispositions

Note 4. Discontinued Operations and Dispositions

Discontinued Operations

Power

In March 2011, Power completed the sale of its 1,000 MW gas-fired Guadalupe generating facility for a total purchase price of $352 million, resulting in an after-tax gain of $54 million.

In July 2011, Power completed the sale of its 1,000 MW gas-fired Odessa generating facility for approximately $335 million, resulting in an after-tax gain of approximately $25 million. The closing of the Odessa sale completes the Texas asset sale process announced by Power in early 2011.

PSEG Texas' operating results for the three months and six months ended June 30, 2011 and 2010, which were reclassified to Discontinued Operations, are summarized below:

	Three Months Ended, June 30,				Six Months Ended, June 30,
	2011		2010		2011		2010
	Millions
Operating Revenues	$	29	$	94	$	92	$	201
Income (Loss ) Before Income Taxes	$	2	$	6	$	20	$	(6	)
Net Income (Loss)	$	2	$	2	$	13	$	(5	)

The carrying amounts of PSEG Texas' assets and liabilities as of June 30, 2011 and December 31, 2010 are summarized in the following table:

	As of June 30,		As of December 31,
	2011		2010
	Millions
Current Assets	$	16	$	28
Noncurrent Assets		278		536
Total Assets of Discontinued Operations	$	294	$	564
Current Liabilities	$	15	$	28
Noncurrent Liabilities		36		44
Total Liabilities of Discontinued Operations	$	51	$	72

Dispositions

Leveraged Leases

During the first six months of 2010, Energy Holdings sold its interest in three leveraged leases, including two international leases for which the IRS has indicated its intention to disallow certain tax deductions taken in prior years.

	Three Months Ended June 30,		Six Months Ended June 30,
	2010		2010
Proceeds from Sales	$	55	$	161
Gain on Sales, after-tax	$	4	$	12

Proceeds from the sales of the international leases were used to reduce the tax exposure related to these lease investments. For additional information see Note 8. Commitments and Contingent Liabilities.