Guarantees Of Debt

9 Months Ended

Sep. 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 September 30, 2011
Operating Revenues	$	0		$	1,725		$	29		$	(356	)	$	1,398
Operating Expenses		1			1,241			29			(356	)		915
Operating Income (Loss)		(1	)		484			0			0			483
Equity Earnings (Losses) of Subsidiaries		315			29			0			(344	)		0
Other Income		9			38			0			(10	)		37
Other Deductions		(1	)		(8	)		0			(1	)		(10	)
Other-Than-Temporary Impairments		1			(9	)		0			0			(8	)
Interest Expense		(33	)		(17	)		(3	)		11			(42	)
Income Tax Benefit (Expense)		12			(200	)		1			0			(187	)
Income (Loss) from Discontinued Operations, net of tax		0			0			29			0			29
Net Income (Loss)	$	302		$	317			27		$	(344	)	$	302
Three Months Ended September 30, 2010
Operating Revenues	$	0		$	1,817		$	30		$	(324	)	$	1,523
Operating Expenses		0			1,207			34			(325	)		916
Operating Income (Loss)		0			610			(4	)		1			607
Equity Earnings (Losses) of Subsidiaries		378			14			0			(392	)		0
Other Income		18			39			1			(14	)		44
Other Deductions		0			(9	)		0			0			(9	)
Other-Than-Temporary Impairments		0			(2	)		0			0			(2	)
Interest Expense		(26	)		(19	)		(5	)		13			(37	)
Income Tax Benefit (Expense)		14			(255	)		2			0			(239	)
Income (Loss) from Discontinued Operations, net of tax		0			0			20			0			20
Net Income (Loss)	$	384		$	378		$	14		$	(392	)	$	384

	Power			Guarantor Subsidiaries			Other Subsidiaries			Consolidating Adjustments			Consolidated
	Millions
Nine Months Ended September 30, 2011
Operating Revenues	$	0		$	5,622		$	106		$	(1,078	)	$	4,650
Operating Expenses		2			4,278			109			(1,078	)		3,311
Operating Income (Loss)		(2	)		1,344			(3	)		0			1,339
Equity Earnings (Losses) of Subsidiaries		917			88			0			(1,005	)		0
Other Income		28			159			0			(31	)		156
Other Deductions		(4	)		(32	)		0			(1	)		(37	)
Other-Than-Temporary Impairments		0			(10	)		0			0			(10	)
Interest Expense		(115	)		(38	)		(13	)		32			(134	)
Income Tax Benefit (Expense)		47			(592	)		6			0			(539	)
Income (Loss) from Discontinued Operations, net of tax		0			0			96			0			96
Net Income (Loss)	$	871		$	919		$	86		$	(1,005	)	$	871
Nine Months Ended September 30, 2011
Net Cash Provided By (Used In) Operating Activities	$	370		$	2,029		$	(319	)	$	(593	)	$	1,487
Net Cash Provided By (Used In) Investing Activities	$	86		$	(935	)	$	652		$	(821	)	($	1,018	)
Net Cash Provided By (Used In) Financing Activities	$	(456	)	$	(1,091	)	$	(332	)	$	1,413		$	(466	)
Nine Months Ended September 30, 2010
Operating Revenues	$	0		$	5,853		$	95		$	(965	)	$	4,983
Operating Expenses		0			4,236			107			(966	)		3,377
Operating Income (Loss)		0			1,617			(12	)		1			1,606
Equity Earnings (Losses) of Subsidiaries		968			(4	)		0			(964	)		0
Other Income		36			124			1			(35	)		126
Other Deductions		(1	)		(35	)		0			0			(36	)
Other-Than-Temporary Impairments		0			(8	)		0			0			(8	)
Interest Expense		(91	)		(45	)		(17	)		34			(119	)
Income Tax Benefit (Expense)		40			(681	)		9			0			(632	)
Income (Loss) from Discontinued Operations, net of tax		0			0			15			0			15
Net Income (Loss)	$	952		$	968		$	(4	)	$	(964	)	$	952
Nine Months Ended September 30, 2010
Net Cash Provided By (Used In) Operating Activities	$	239		$	1,979		$	(3	)	$	(959	)	$	1,256
Net Cash Provided By (Used In) Investing Activities	$	(18	)	$	(1,522	)	$	0		$	661		$	(879	)
Net Cash Provided By (Used In) Financing Activities	$	(216	)	$	(453	)	$	(43	)	$	297		$	(415	)

	Power		Guarantor Subsidiaries		Other Subsidiaries		Consolidating Adjustments			Consolidated
	Millions
As of September 30, 2011
Current Assets	$	4,746	$	7,343	$	909	$	(9,701	)	$	3,297
Property, Plant and Equipment, net		58		5,576		932		0			6,566
Investment in Subsidiaries		4,194		800		0		(4,994	)		0
Noncurrent Assets		157		1,496		47		(79	)		1,621
Total Assets	$	9,155	$	15,215	$	1,888	$	(14,774	)	$	11,484
Current Liabilities	$	828	$	9,534	$	944	$	(9,700	)	$	1,606
Noncurrent Liabilities		250		1,488		143		(80	)		1,801
Long-Term Debt		2,640		0		0		0			2,640
Member's Equity		5,437		4,193		801		(4,994	)		5,437
Total Liabilities and Member's Equity	$	9,155	$	15,215	$	1,888	$	(14,774	)	$	11,484
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 September 30, 2011
Operating Revenues	$	0		$	1,725		$	29		$	(356	)	$	1,398
Operating Expenses		1			1,241			29			(356	)		915
Operating Income (Loss)		(1	)		484			0			0			483
Equity Earnings (Losses) of Subsidiaries		315			29			0			(344	)		0
Other Income		9			38			0			(10	)		37
Other Deductions		(1	)		(8	)		0			(1	)		(10	)
Other-Than-Temporary Impairments		1			(9	)		0			0			(8	)
Interest Expense		(33	)		(17	)		(3	)		11			(42	)
Income Tax Benefit (Expense)		12			(200	)		1			0			(187	)
Income (Loss) from Discontinued Operations, net of tax		0			0			29			0			29
Net Income (Loss)	$	302		$	317			27		$	(344	)	$	302
Three Months Ended September 30, 2010
Operating Revenues	$	0		$	1,817		$	30		$	(324	)	$	1,523
Operating Expenses		0			1,207			34			(325	)		916
Operating Income (Loss)		0			610			(4	)		1			607
Equity Earnings (Losses) of Subsidiaries		378			14			0			(392	)		0
Other Income		18			39			1			(14	)		44
Other Deductions		0			(9	)		0			0			(9	)
Other-Than-Temporary Impairments		0			(2	)		0			0			(2	)
Interest Expense		(26	)		(19	)		(5	)		13			(37	)
Income Tax Benefit (Expense)		14			(255	)		2			0			(239	)
Income (Loss) from Discontinued Operations, net of tax		0			0			20			0			20
Net Income (Loss)	$	384		$	378		$	14		$	(392	)	$	384

	Power			Guarantor Subsidiaries			Other Subsidiaries			Consolidating Adjustments			Consolidated
	Millions
Nine Months Ended September 30, 2011
Operating Revenues	$	0		$	5,622		$	106		$	(1,078	)	$	4,650
Operating Expenses		2			4,278			109			(1,078	)		3,311
Operating Income (Loss)		(2	)		1,344			(3	)		0			1,339
Equity Earnings (Losses) of Subsidiaries		917			88			0			(1,005	)		0
Other Income		28			159			0			(31	)		156
Other Deductions		(4	)		(32	)		0			(1	)		(37	)
Other-Than-Temporary Impairments		0			(10	)		0			0			(10	)
Interest Expense		(115	)		(38	)		(13	)		32			(134	)
Income Tax Benefit (Expense)		47			(592	)		6			0			(539	)
Income (Loss) from Discontinued Operations, net of tax		0			0			96			0			96
Net Income (Loss)	$	871		$	919		$	86		$	(1,005	)	$	871
Nine Months Ended September 30, 2011
Net Cash Provided By (Used In) Operating Activities	$	370		$	2,029		$	(319	)	$	(593	)	$	1,487
Net Cash Provided By (Used In) Investing Activities	$	86		$	(935	)	$	652		$	(821	)	($	1,018	)
Net Cash Provided By (Used In) Financing Activities	$	(456	)	$	(1,091	)	$	(332	)	$	1,413		$	(466	)
Nine Months Ended September 30, 2010
Operating Revenues	$	0		$	5,853		$	95		$	(965	)	$	4,983
Operating Expenses		0			4,236			107			(966	)		3,377
Operating Income (Loss)		0			1,617			(12	)		1			1,606
Equity Earnings (Losses) of Subsidiaries		968			(4	)		0			(964	)		0
Other Income		36			124			1			(35	)		126
Other Deductions		(1	)		(35	)		0			0			(36	)
Other-Than-Temporary Impairments		0			(8	)		0			0			(8	)
Interest Expense		(91	)		(45	)		(17	)		34			(119	)
Income Tax Benefit (Expense)		40			(681	)		9			0			(632	)
Income (Loss) from Discontinued Operations, net of tax		0			0			15			0			15
Net Income (Loss)	$	952		$	968		$	(4	)	$	(964	)	$	952
Nine Months Ended September 30, 2010
Net Cash Provided By (Used In) Operating Activities	$	239		$	1,979		$	(3	)	$	(959	)	$	1,256
Net Cash Provided By (Used In) Investing Activities	$	(18	)	$	(1,522	)	$	0		$	661		$	(879	)
Net Cash Provided By (Used In) Financing Activities	$	(216	)	$	(453	)	$	(43	)	$	297		$	(415	)

	Power		Guarantor Subsidiaries		Other Subsidiaries		Consolidating Adjustments			Consolidated
	Millions
As of September 30, 2011
Current Assets	$	4,746	$	7,343	$	909	$	(9,701	)	$	3,297
Property, Plant and Equipment, net		58		5,576		932		0			6,566
Investment in Subsidiaries		4,194		800		0		(4,994	)		0
Noncurrent Assets		157		1,496		47		(79	)		1,621
Total Assets	$	9,155	$	15,215	$	1,888	$	(14,774	)	$	11,484
Current Liabilities	$	828	$	9,534	$	944	$	(9,700	)	$	1,606
Noncurrent Liabilities		250		1,488		143		(80	)		1,801
Long-Term Debt		2,640		0		0		0			2,640
Member's Equity		5,437		4,193		801		(4,994	)		5,437
Total Liabilities and Member's Equity	$	9,155	$	15,215	$	1,888	$	(14,774	)	$	11,484
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