Guarantees Of Debt

6 Months Ended

Jun. 30, 2011

Guarantees Of Debt

Note 18. Guarantees of Debt

Each series of Power's Senior Notes, Pollution Control Notes and its syndicated revolving credit facilities are fully and unconditionally and jointly and severally guaranteed by its subsidiaries, PSEG Fossil LLC (Fossil), PSEG Nuclear LLC (Nuclear), and PSEG Energy Resources & Trade LLC (ER&T). The following table presents condensed financial information for the guarantor subsidiaries, as well as Power's non-guarantor subsidiaries.

	Power			Guarantor Subsidiaries			Other Subsidiaries			Consolidating Adjustments			Consolidated
	Millions
Three Months Ended June 30, 2011
Operating Revenues	$	0		$	1,619		$	27		$	(361	)	$	1,285
Operating Expenses		(1	)		1,263			28			(360	)		930
Operating Income (Loss)		1			356			(1	)		(1	)		355
Equity Earnings (Losses) of Subsidiaries		220			0			0			(220	)		0
Other Income		9			50			0			(10	)		49
Other Deductions		0			(14	)		0			0			(14	)
Other-Than-Temporary Impairments		0			(1	)		0			0			(1	)
Interest Expense		(36	)		(11	)		(4	)		10			(41	)
Income Tax Benefit (Expense)		14			(160	)		2			1			(143	)
Income (Loss) on Discontinued Operations, net of tax		0			0			3			0			3
Net Income (Loss)	$	208		$	220		$	0		$	(220	)	$	208
Three Months Ended June 30, 2010
Operating Revenues	$	0		$	1,562		$	27		$	(325	)	$	1,264
Operating Expenses		2			1,207			32			(325	)		916
Operating Income (Loss)		(2	)		355			(5	)		0			348
Equity Earnings (Losses) of Subsidiaries		213			(4	)		0			(209	)		0
Other Income		9			44			0			(10	)		43
Other Deductions		0			(13	)		0			0			(13	)
Other-Than-Temporary Impairments		0			(5	)		0			0			(5	)
Interest Expense		(34	)		(12	)		(6	)		10			(42	)
Income Tax Benefit (Expense)		18			(152	)		5			0			(129	)
Income (Loss) on Discontinued Operations, net of tax		0			0			2			0			2
Net Income (Loss)	$	204		$	213		$	(4	)	$	(209	)	$	204

	Power			Guarantor Subsidiaries			Other Subsidiaries			Consolidating Adjustments			Consolidated
	Millions
Six Months Ended June 30, 2011
Operating Revenues	$	0		$	3,897		$	77		$	(722	)	$	3,252
Operating Expenses		1			3,037			80			(722	)		2,396
Operating Income (Loss)		(1	)		860			(3	)		0			856
Equity Earnings (Losses) of Subsidiaries		602			59			0			(661	)		0
Other Income		19			121			0			(21	)		119
Other Deductions		(3	)		(23	)		0			0			(26	)
Other-Than-Temporary Impairments		(1	)		(2	)		0			0			(3	)
Interest Expense		(82	)		(21	)		(10	)		21			(92	)
Income Tax Benefit (Expense)		35			(392	)		5			0			(352	)
Income (Loss) on Discontinued Operations, net of tax		0			0			67			0			67
Net Income (Loss)	$	569		$	602		$	59		$	(661	)	$	569
Six Months Ended June 30, 2011
Net Cash Provided By (Used In) Operating Activities	$	367		$	1,400		$	(148	)	$	(473	)	$	1,146
Net Cash Provided By (Used In) Investing Activities	$	589		$	(674	)	$	317		$	(413	)	$	(181	)
Net Cash Provided By (Used In) Financing Activities	$	(956	)	$	(725	)	$	(168	)	$	887		$	(962	)
Six Months Ended June 30, 2010
Operating Revenues	$	0		$	4,036		$	65		$	(641	)	$	3,460
Operating Expenses		0			3,029			73			(641	)		2,461
Operating Income (Loss)		0			1,007			(8	)		0			999
Equity Earnings (Losses) of Subsidiaries		590			(18	)		0			(572	)		0
Other Income		18			85			0			(21	)		82
Other Deductions		(1	)		(26	)		0			0			(27	)
Other-Than-Temporary Impairments		0			(6	)		0			0			(6	)
Interest Expense		(65	)		(26	)		(12	)		21			(82	)
Income Tax Benefit (Expense)		26			(426	)		7			0			(393	)
Income (Loss) on Discontinued Operations, net of tax		0			0			(5	)		0			(5	)
Net Income (Loss)	$	568		$	590		$	(18	)	$	(572	)	$	568
Six Months Ended June 30, 2010
Net Cash Provided By (Used In) Operating Activities	$	45		$	1,297		$	(13	)	$	(575	)	$	754
Net Cash Provided By (Used In) Investing Activities	$	(29	)	$	(885	)	$	0		$	319		$	(595	)
Net Cash Provided By (Used In) Financing Activities	$	(17	)	$	(421	)	$	(33	)	$	256		$	(215	)

	Power		Guarantor Subsidiaries		Other Subsidiaries		Consolidating Adjustments			Consolidated
	Millions
As of June 30, 2011
Current Assets	$	3,787	$	6,930	$	1,052	$	(9,417	)	$	2,352
Property, Plant and Equipment, net		56		5434		920		0			6,410
Investment in Subsidiaries		4,395		937		0		(5,332	)		0
Noncurrent Assets		153		1,625		45		(68	)		1,755
Total Assets	$	8,391	$	14,926	$	2,017	$	(14,817	)	$	10,517
Current Liabilities	$	787	$	9,174	$	945	$	(9,417	)	$	1,489
Noncurrent Liabilities		250		1,359		132		(67	)		1,674
Long-Term Debt		2,140		0		0		0			2,140
Member's Equity		5,214		4,393		940		(5,333	)		5,214
Total Liabilities and Member's Equity	$	8,391	$	14,926	$	2,017	$	(14,817	)	$	10,517
As of December 31, 2010
Current Assets	$	3,988	$	6,807	$	1,117	$	(8,468	)	$	3,444
Property, Plant and Equipment, net		55		5,385		902		0			6,342
Investment in Subsidiaries		4,794		1,079		0		(5,873	)		0
Noncurrent Assets		170		1,549		41		(94	)		1,666
Total Assets	$	9,007	$	14,820	$	2,060	$	(14,435	)	$	11,452
Current Liabilities	$	751	$	8,519	$	849	$	(8,468	)	$	1,651
Noncurrent Liabilities		423		1,510		129		(93	)		1,969
Long-Term Debt		2,805		0		0		0			2,805
Member's Equity		5,028		4,791		1,082		(5,874	)		5,027
Total Liabilities and Member's Equity	$	9,007	$	14,820	$	2,060	$	(14,435	)	$	11,452

Power [Member]

Guarantees Of Debt

Note 18. Guarantees of Debt

Each series of Power's Senior Notes, Pollution Control Notes and its syndicated revolving credit facilities are fully and unconditionally and jointly and severally guaranteed by its subsidiaries, PSEG Fossil LLC (Fossil), PSEG Nuclear LLC (Nuclear), and PSEG Energy Resources & Trade LLC (ER&T). The following table presents condensed financial information for the guarantor subsidiaries, as well as Power's non-guarantor subsidiaries.

	Power			Guarantor Subsidiaries			Other Subsidiaries			Consolidating Adjustments			Consolidated
	Millions
Three Months Ended June 30, 2011
Operating Revenues	$	0		$	1,619		$	27		$	(361	)	$	1,285
Operating Expenses		(1	)		1,263			28			(360	)		930
Operating Income (Loss)		1			356			(1	)		(1	)		355
Equity Earnings (Losses) of Subsidiaries		220			0			0			(220	)		0
Other Income		9			50			0			(10	)		49
Other Deductions		0			(14	)		0			0			(14	)
Other-Than-Temporary Impairments		0			(1	)		0			0			(1	)
Interest Expense		(36	)		(11	)		(4	)		10			(41	)
Income Tax Benefit (Expense)		14			(160	)		2			1			(143	)
Income (Loss) on Discontinued Operations, net of tax		0			0			3			0			3
Net Income (Loss)	$	208		$	220		$	0		$	(220	)	$	208
Three Months Ended June 30, 2010
Operating Revenues	$	0		$	1,562		$	27		$	(325	)	$	1,264
Operating Expenses		2			1,207			32			(325	)		916
Operating Income (Loss)		(2	)		355			(5	)		0			348
Equity Earnings (Losses) of Subsidiaries		213			(4	)		0			(209	)		0
Other Income		9			44			0			(10	)		43
Other Deductions		0			(13	)		0			0			(13	)
Other-Than-Temporary Impairments		0			(5	)		0			0			(5	)
Interest Expense		(34	)		(12	)		(6	)		10			(42	)
Income Tax Benefit (Expense)		18			(152	)		5			0			(129	)
Income (Loss) on Discontinued Operations, net of tax		0			0			2			0			2
Net Income (Loss)	$	204		$	213		$	(4	)	$	(209	)	$	204

	Power			Guarantor Subsidiaries			Other Subsidiaries			Consolidating Adjustments			Consolidated
	Millions
Six Months Ended June 30, 2011
Operating Revenues	$	0		$	3,897		$	77		$	(722	)	$	3,252
Operating Expenses		1			3,037			80			(722	)		2,396
Operating Income (Loss)		(1	)		860			(3	)		0			856
Equity Earnings (Losses) of Subsidiaries		602			59			0			(661	)		0
Other Income		19			121			0			(21	)		119
Other Deductions		(3	)		(23	)		0			0			(26	)
Other-Than-Temporary Impairments		(1	)		(2	)		0			0			(3	)
Interest Expense		(82	)		(21	)		(10	)		21			(92	)
Income Tax Benefit (Expense)		35			(392	)		5			0			(352	)
Income (Loss) on Discontinued Operations, net of tax		0			0			67			0			67
Net Income (Loss)	$	569		$	602		$	59		$	(661	)	$	569
Six Months Ended June 30, 2011
Net Cash Provided By (Used In) Operating Activities	$	367		$	1,400		$	(148	)	$	(473	)	$	1,146
Net Cash Provided By (Used In) Investing Activities	$	589		$	(674	)	$	317		$	(413	)	$	(181	)
Net Cash Provided By (Used In) Financing Activities	$	(956	)	$	(725	)	$	(168	)	$	887		$	(962	)
Six Months Ended June 30, 2010
Operating Revenues	$	0		$	4,036		$	65		$	(641	)	$	3,460
Operating Expenses		0			3,029			73			(641	)		2,461
Operating Income (Loss)		0			1,007			(8	)		0			999
Equity Earnings (Losses) of Subsidiaries		590			(18	)		0			(572	)		0
Other Income		18			85			0			(21	)		82
Other Deductions		(1	)		(26	)		0			0			(27	)
Other-Than-Temporary Impairments		0			(6	)		0			0			(6	)
Interest Expense		(65	)		(26	)		(12	)		21			(82	)
Income Tax Benefit (Expense)		26			(426	)		7			0			(393	)
Income (Loss) on Discontinued Operations, net of tax		0			0			(5	)		0			(5	)
Net Income (Loss)	$	568		$	590		$	(18	)	$	(572	)	$	568
Six Months Ended June 30, 2010
Net Cash Provided By (Used In) Operating Activities	$	45		$	1,297		$	(13	)	$	(575	)	$	754
Net Cash Provided By (Used In) Investing Activities	$	(29	)	$	(885	)	$	0		$	319		$	(595	)
Net Cash Provided By (Used In) Financing Activities	$	(17	)	$	(421	)	$	(33	)	$	256		$	(215	)

	Power		Guarantor Subsidiaries		Other Subsidiaries		Consolidating Adjustments			Consolidated
	Millions
As of June 30, 2011
Current Assets	$	3,787	$	6,930	$	1,052	$	(9,417	)	$	2,352
Property, Plant and Equipment, net		56		5434		920		0			6,410
Investment in Subsidiaries		4,395		937		0		(5,332	)		0
Noncurrent Assets		153		1,625		45		(68	)		1,755
Total Assets	$	8,391	$	14,926	$	2,017	$	(14,817	)	$	10,517
Current Liabilities	$	787	$	9,174	$	945	$	(9,417	)	$	1,489
Noncurrent Liabilities		250		1,359		132		(67	)		1,674
Long-Term Debt		2,140		0		0		0			2,140
Member's Equity		5,214		4,393		940		(5,333	)		5,214
Total Liabilities and Member's Equity	$	8,391	$	14,926	$	2,017	$	(14,817	)	$	10,517
As of December 31, 2010
Current Assets	$	3,988	$	6,807	$	1,117	$	(8,468	)	$	3,444
Property, Plant and Equipment, net		55		5,385		902		0			6,342
Investment in Subsidiaries		4,794		1,079		0		(5,873	)		0
Noncurrent Assets		170		1,549		41		(94	)		1,666
Total Assets	$	9,007	$	14,820	$	2,060	$	(14,435	)	$	11,452
Current Liabilities	$	751	$	8,519	$	849	$	(8,468	)	$	1,651
Noncurrent Liabilities		423		1,510		129		(93	)		1,969
Long-Term Debt		2,805		0		0		0			2,805
Member's Equity		5,028		4,791		1,082		(5,874	)		5,027
Total Liabilities and Member's Equity	$	9,007	$	14,820	$	2,060	$	(14,435	)	$	11,452