Note 14. Schedule of Consolidated Debt

Long-Term Debt


	As of December 31,
	2011			2010
	Millions
PSEG (Parent)
Fair Value of Swaps (A)	$	62		$	39
Unamortized Discount Related to Debt Exchange (B)		(23	)		(29	)

Total Long-Term Debt of PSEG (Parent)	$	39		$	10


			As of December 31,
	Maturity		2011			2010
			Millions
Power
Senior Notes:
7.75%		2011	$	0		$	606
6.95%		2012		0			600
2.50%		2013		300			300
5.00%		2014		250			250
5.50%		2015		300			300
5.32%		2016		303			303
2.75%		2016		250			0
5.13%		2020		406			406
4.15%		2021		250			0
8.63%		2031		500			500

Total Senior Notes				2,559			3,265
Pollution Control Notes:
Floating Rate (C)		2014		44			44
5.00%		2012		66			66
5.50%		2020		14			14
5.85%		2027		19			19
5.75%		2031		25			25
5.75%		2037		40			40

Total Pollution Control Notes				208			208

Principal Amount Outstanding				2,767			3,473

Amounts Due Within One Year				(66	)		(650	)
Net Unamortized Discount				(16	)		(18	)

Total Long-Term Debt of Power			$	2,685		$	2,805


		As of December 31,
	Maturity	2011			2010
		Millions
PSE&G
First and Refunding Mortgage Bonds (D):
6.75%	2016	$	171		$	171
9.25%	2021		134			134
8.00%	2037		7			7
5.00%	2037		8			8

Total First and Refunding Mortgage Bonds			320			320
Pollution Control Bonds (D):
5.20%	2025		23			23
0.95%	2028 - 2033		0			164
1.20%	2031		0			100
5.45%	2032		50			50

Total Pollution Control Bonds			73			337
Medium-Term Notes (MTNs) (D):
5.13%	2012		300			300
5.00%	2013		150			150
5.38%	2013		300			300
6.33%	2013		275			275
0.85%	2014		250			0
5.00%	2014		250			250
2.70%	2015		300			300
5.30%	2018		400			400
7.04%	2020		9			9
3.50%	2020		250			250
5.25%	2035		250			250
5.70%	2036		250			250
5.80%	2037		350			350
5.38%	2039		250			250
5.50%	2040		300			300

Total MTNs			3,884			3,634

Principal Amount Outstanding			4,277			4,291

Amounts Due Within One Year			(300	)		(264	)
Net Unamortized Discount			(7	)		(8	)

Total Long-Term Debt of PSE&G (excluding Transition Funding and Transition Funding II)		$	3,970		$	4,019


			As of December 31,
	Maturity		2011			2010
			Millions
Transition Funding (PSE&G)
Securitization Bonds:
6.45%		2010-2011		0			46
6.61%		2011-2013		305			454
6.75%		2013-2014		220			220
6.89%		2014-2015		370			370

Principal Amount Outstanding				895			1,090
Amounts Due Within One Year				(205	)		(195	)

Total Securitization Debt of Transition Funding				690			895

Transition Funding II (PSE&G)
Securitization Bonds:
4.34%		2010-2012		1			12
4.49%		2012-2013		20			20
4.57%		2013-2015		23			23

Principal Amount Outstanding				44			55
Amounts Due Within One Year				(11	)		(11	)

Total Securitization Debt of Transition Funding II				33			44

Total Long-Term Debt of PSE&G			$	4,693		$	4,958


			As of December 31,
Energy Holdings	Maturity		2011			2010
			Millions
Non-Recourse Project Debt (E):
Resources - 5.00% to 8.75%		2010-2020	$	45		$	46
Resources - Other(F)		2012		50			0
EGDC - 8.27%		2010-2011		0			1

Principal Amount Outstanding				95			47
Amounts Due Within One Year				(51	)		(1	)

Total Non-Recourse Project Debt				44			46

Total Long-Term Debt of Energy Holdings			$	44		$	46

(A)	PSEG entered into various interest rate swaps to hedge the fair value of certain debt at Power. The fair value adjustments from these hedges are reflected as offsets to long-term debt on the Consolidated Balance Sheet. For additional information, see Note 16. Financial Risk Management Activities.

(B)

In September 2009, Power completed an exchange offer with eligible holders of Energy Holdings' 8.50% Senior Notes due 2011 in order to manage long-term debt maturities. Since the debt exchange was between two subsidiaries of the same parent company, PSEG, and treated as a debt modification for accounting purposes, the resulting premium was deferred and is being amortized over the term of the newly issued debt. The deferred amount is reflected as an offset to Long-Term Debt on PSEG's Consolidated Balance Sheet.

(C)	The Pennsylvania Economic Development Authority (PEDFA) bond is a variable rate bond that is in weekly reset mode.

(D)	Secured by essentially all property of PSE&G pursuant to its First and Refunding Mortgage.

(E)

Non-recourse financing transactions consist of loans from banks and other lenders that are typically secured by project assets and cash flows and generally impose no material obligation on the parent-level investor to repay any debt incurred by the project borrower. The consequences of permitting a project-level default include the potential for loss of any invested equity by the parent.

(F)	As a result of the Dynegy bankruptcy proceedings, Energy Holdings ceased leveraged lease accounting and recorded the related nonrecourse project debt on its balance sheet at its fair value of $50 million.

Long-Term Debt Maturities

The aggregate principal amounts of maturities for each of the five years following December 31, 2011 are as follows:


			PSE&G						Energy Holdings
Year	Power		PSE&G		Transition Funding		Transition Funding II		Non-Recourse Debt		Total
	Millions
2012	$	66	$	300	$	205	$	11	$	51	$	633
2013		300		725		214		12		1		1,252
2014		294		500		225		13		1		1,033
2015		300		300		251		8		17		876
2016		553		171		0		0		7		731
Thereafter		1,254		2,281		0		0		18		3,553

	$	2,767	$	4,277	$	895	$	44	$	95	$	8,078

Long-Term Debt Financing Transactions

During 2011, PSEG and its subsidiaries had the following Long-Term Debt issuances, maturities and redemptions:

Power

•

caused mandatory purchase and remarketing of its $44 million of PEDFA Variable Rate Demand Bonds in December. The remarketed bonds are backed by a three-year letter of credit, expiring December 2014, which replaced an expiring one-year letter of credit,

•

early redeemed $600 million of 6.95% Senior Notes due June 2012 in December,

•

issued $250 million of 2.75% Senior Notes due September 2016 in September,

•

issued $250 million of 4.15% Senior Notes due September 2021 in September, and

•

paid $606 million of 7.75% Senior Notes at maturity in April.

PSE&G

•

bought in $100 million of the New Jersey Economic Development Authority Bonds, which were serviced and secured by PSE&G's first mortgage bonds of like tenor, on their mandatory put date in December,

•

bought in $164 million of Pollution Control Financing Authority of Salem County Authority Bonds, which were serviced and secured by PSE&G's First and Refunding Mortgage Bonds of like tenor, on their mandatory put date in November,

•

issued $250 million of 0.85% Medium Term Notes due August 2014 in August,

•

paid $195 million of Transition Funding's securitization debt, and

•

paid $11 million of Transition Funding II's securitization debt.

Short-Term Liquidity

PSEG meets its short-term liquidity requirements as well as those of Power primarily through the issuance of commercial paper. PSE&G maintains its own separate commercial paper program to meet its short-term liquidity requirements. Both commercial paper programs are fully back-stopped by their own separate credit facilities.

The commitments under PSEG's credit facilities are provided by a diverse bank group. As of December 31, 2011, no single institution represented more than 8% of the total commitments in our credit facilities.

Each of our credit facilities is restricted as to availability and use to the specific companies as listed below; however, if necessary, the PSEG facilities can also be used to support our subsidiaries' liquidity needs. Our total credit facilities and available liquidity as of December 31, 2011 were as follows:


	As of December 31, 2011
Company/Facility	Total Facility		Usage				Available Liquidity		Expiration Date		Primary Purpose
	Millions
PSEG
5-year Credit Facility(A)	$	477	$	12	(C	)	$	465		Dec 2012	Commercial Paper (CP) Support/ Funding/Letters of Credit
5-year Credit Facility	$	500		0			$	500		Apr 2016	CP Support/Funding/Letters of Credit

Total PSEG	$	977	$	12			$	965

Power
5-year Credit Facility(B)	$	1,525	$	75	(C	)	$	1,450		Dec 2012	CP Support/Funding/Letters of Credit
5-year Credit Facility		1,000		0				1,000		Apr 2016	CP Support/Funding/Letters of Credit
Bilateral Credit Facility		100		100	(C	)		0		Sept 2015	Letters of Credit

Total Power	$	2,625	$	175			$	2,450

PSE&G
5-year Credit Facility	$	600	$	0			$	600		Apr 2016	CP Support/Funding/Letters of Credit

Total PSE&G	$	600	$	0			$	600

Total	$	4,202					$	4,015

(A)	In December 2011, this facility was reduced by $23 million.

(B)	In December 2011, this facility was reduced by $75 million.

(C)	Includes amounts related to letters of credit outstanding.

In April 2011, PSEG, Power and PSE&G entered into new 5-year credit agreements in the amounts of $500 million, $1 billion and $600 million, respectively. These new agreements will expire in April 2016. Concurrently, PSEG reduced its existing $1 billion credit facility to $500 million, Power terminated its existing $350 million credit facility, and PSE&G terminated its existing $600 million credit facility. As a result of these changes, Power's total credit capacity increased by $650 million.

Fair Value of Debt

The estimated fair values were determined using the market quotations or values of instruments with similar terms, credit ratings, remaining maturities and redemptions as of December 31, 2011 and 2010.


	December 31, 2011				December 31, 2010
	Carrying Amount		Fair Value (A)		Carrying Amount		Fair Value (A)
	Millions
Long-Term Debt:
PSEG (Parent)	$	39	$	62	$	10	$	39
Power -Recourse Debt		2,751		3,158		3,455		3,831
PSE&G		4,270		4,905		4,283		4,615
Transition Funding (PSE&G)		895		1,016		1,090		1,245
Transition Funding II (PSE&G)		44		47		55		59
Energy Holdings:
Project Level, Non-Recourse Debt(B)		95		95		47		47

	$	8,094	$	9,283	$	8,940	$	9,836

(A)	Fair value excludes unamortized discounts, including amounts related to a Debt Exchange in 2009 between Power and Energy Holdings that is deferred at the PSEG parent level since the exchange was between subsidiaries of the same parent company.

(B)	Fair value amounts as of December 31, 2011 include $50 million of nonrecourse project debt related to Dynegy.