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Trust Investments

3 Months Ended

Mar. 31, 2022

Schedule of Trust Investments [Line Items]

Nuclear Decommissioning Trust (NDT) Fund

PSEG Power maintains an external master NDT to fund its share of decommissioning costs for its five nuclear facilities upon their respective termination of operation. The trust contains two separate funds: a qualified fund and a non-qualified fund. Section 468A of the Internal Revenue Code limits the amount of money that can be contributed into a qualified fund. The funds are managed by third-party investment managers who operate under investment guidelines developed by PSEG Power.

The following tables show the fair values and gross unrealized gains and losses for the securities held in the NDT Fund.



	As of March 31, 2022
	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	Millions
Equity Securities
Domestic	$	496	$	326	$	(3)	$	819
International	333		98		(18)		413
Total Equity Securities	829		424		(21)		1,232
Available-for-Sale Debt Securities
Government	676		2		(38)		640
Corporate	649		3		(35)		617
Total Available-for-Sale Debt Securities	1,325		5		(73)		1,257
Total NDT Fund Investments (A)	$	2,154	$	429	$	(94)	$	2,489

(A)The NDT Fund Investments table excludes foreign currency of $2 million as of March 31, 2022, which is part of the NDT Fund.



	As of December 31, 2021
	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	Millions
Equity Securities
Domestic	$	491	$	363	$	(3)	$	851
International	346		119		(15)		450
Total Equity Securities	837		482		(18)		1,301
Available-for-Sale Debt Securities
Government	683		12		(8)		687
Corporate	637		16		(6)		647
Total Available-for-Sale Debt Securities	1,320		28		(14)		1,334
Total NDT Fund Investments (A)	$	2,157	$	510	$	(32)	$	2,635

(A)The NDT Fund Investments table excludes foreign currency of $2 million as of December 31, 2021, which is part of the NDT Fund.

Net unrealized losses on debt securities of $(40) million (after-tax) were included in Accumulated Other Comprehensive Loss on PSEG’s Condensed Consolidated Balance Sheet as of March 31, 2022. The portion of net unrealized losses recognized in the first three months of 2022 related to equity securities still held as of March 31, 2022 was $(47) million.

The amounts in the preceding tables do not include receivables and payables for NDT Fund transactions which have not settled at the end of each period. Such amounts are included in Accounts Receivable and Accounts Payable on the Condensed Consolidated Balance Sheets as shown in the following table.



	As of		As of
	March 31, 2022		December 31, 2021
	Millions
Accounts Receivable	$	18	$	11
Accounts Payable	$	10	$	11

The following table shows the value of securities in the NDT Fund that have been in an unrealized loss position for less than and greater than 12 months.



	As of March 31, 2022								As of December 31, 2021
	Less Than 12 Months				Greater Than 12 Months				Less Than 12 Months				Greater Than 12 Months
	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
	Millions
Equity Securities (A)
Domestic	$	62	$	(3)	$	—	$	—	$	69	$	(3)	$	—	$	—
International	91		(15)		9		(3)		76		(13)		9		(2)
Total Equity Securities	153		(18)		9		(3)		145		(16)		9		(2)
Available-for-Sale Debt Securities
Government (B)	448		(26)		118		(12)		332		(5)		67		(3)
Corporate (C)	420		(26)		74		(9)		306		(4)		30		(2)
Total Available-for-Sale Debt Securities	868		(52)		192		(21)		638		(9)		97		(5)
NDT Trust Investments	$	1,021	$	(70)	$	201	$	(24)	$	783	$	(25)	$	106	$	(7)

(A)Equity Securities—Investments in marketable equity securities within the NDT Fund are primarily in common stocks within a broad range of industries and sectors. Unrealized gains and losses on these securities are recorded in Net Income.

(B)Debt Securities (Government)—Unrealized gains and losses on these securities are recorded in Accumulated Other Comprehensive Income (Loss). The unrealized losses on PSEG Power’s NDT investments in U.S. Treasury obligations and Federal Agency mortgage-backed securities were caused by interest rate changes. PSEG Power also has investments in municipal bonds. It is not expected that these securities will settle for less than their amortized cost. PSEG Power does not intend to sell these securities nor will it be more-likely-than-not required to sell before recovery of their amortized cost. PSEG Power did not recognize credit losses for U.S. Treasury obligations and Federal Agency mortgage-backed securities because these investments are guaranteed by the U.S. government or an agency of the U.S. government. PSEG Power did not recognize credit losses for municipal bonds because they are primarily investment grade securities.

(C)Debt Securities (Corporate)—Unrealized gains and losses on these securities are recorded in Accumulated Other Comprehensive Income (Loss). Unrealized losses were due to market declines. It is not expected that these securities would settle for less than their amortized cost. PSEG Power does not intend to sell these securities nor will it be more-likely-than-not required to sell before recovery of their amortized cost. PSEG Power did not recognize credit losses for these corporate bonds because they are primarily investment grade securities.

The proceeds from the sales of and the net gains (losses) on securities in the NDT Fund were:



	Three Months Ended
	March 31,
		2022		2021
		Millions
Proceeds from NDT Fund Sales (A)		$	473	$	597
Net Realized Gains (Losses) on NDT Fund
Gross Realized Gains		$	29	$	79
Gross Realized Losses		(34)		(15)
Net Realized Gains (Losses) on NDT Fund (B)		(5)		64
Net Unrealized Gains (Losses) on Equity Securities		(61)		(7)

Net Gains (Losses) on NDT Fund Investments		$	(66)	$	57

(A)Includes activity in accounts related to the liquidation of funds being transitioned within the trust.

(B)The cost of these securities was determined on the basis of specific identification.

The NDT Fund debt securities held as of March 31, 2022 had the following maturities:



Time Frame	Fair Value
	Millions
Less than one year	$	20
1 - 5 years	324
6 - 10 years	226
11 - 15 years	70
16 - 20 years	109
Over 20 years	508
Total NDT Available-for-Sale Debt Securities	$	1,257

PSEG Power periodically assesses individual debt securities whose fair value is less than amortized cost to determine whether the investments are impaired. For these securities, management considers its intent to sell or requirement to sell a security prior to expected recovery. In those cases where a sale is expected, any impairment would be recorded through earnings. For fixed income securities where there is no intent to sell or likely requirement to sell, management evaluates whether credit loss is a component of the impairment. If so, that portion is recorded through earnings while the noncredit loss component is recorded through Accumulated Other Comprehensive Income (Loss). Any subsequent recoveries of the noncredit loss component of the impairment would be recorded through Accumulated Other Comprehensive Income (Loss). Any subsequent recoveries of the credit loss component would be recognized through earnings. The assessment of fair market value compared to cost is applied on a weighted average basis taking into account various purchase dates and initial cost of the securities.

Rabbi Trust

PSEG maintains certain unfunded nonqualified benefit plans to provide supplemental retirement and deferred compensation benefits to certain key employees. Certain assets related to these plans have been set aside in a grantor trust commonly known as a “Rabbi Trust.”

The following tables show the fair values, gross unrealized gains and losses and amortized cost basis for the securities held in the Rabbi Trust.



	As of March 31, 2022
	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	Millions
Domestic Equity Securities	$	15	$	10	$	—	$	25
Available-for-Sale Debt Securities
Government	111		—		(8)		103
Corporate	96		1		(6)		91
Total Available-for-Sale Debt Securities	207		1		(14)		194

Total Rabbi Trust Investments	$	222	$	11	$	(14)	$	219



	As of December 31, 2021
	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	Millions
Domestic Equity Securities	$	14	$	12	$	—	$	26
Available-for-Sale Debt Securities
Government	107		1		(1)		107
Corporate	105		5		(1)		109
Total Available-for-Sale Debt Securities	212		6		(2)		216
Total Rabbi Trust Investments	$	226	$	18	$	(2)	$	242

Net unrealized losses on debt securities of $(10) million (after-tax) were included in Accumulated Other Comprehensive Loss on PSEG’s Condensed Consolidated Balance Sheet as of March 31, 2022. The portion of net unrealized losses recognized during the first three months of 2022 related to equity securities still held as of March 31, 2022 was $(1) million.

The amounts in the preceding tables do not include receivables and payables for Rabbi Trust Fund transactions which have not settled at the end of each period. Such amounts are included in Accounts Receivable and Accounts Payable on the Condensed Consolidated Balance Sheets as shown in the following table.



	As of		As of
	March 31, 2022		December 31, 2021
	Millions
Accounts Receivable	$	2	$	1
Accounts Payable	$	—	$	—

The following table shows the value of securities in the Rabbi Trust Fund that have been in an unrealized loss position for less than 12 months and greater than 12 months.



	As of March 31, 2022								As of December 31, 2021
	Less Than 12 Months				Greater Than 12 Months				Less Than 12 Months				Greater Than 12 Months
	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
	Millions
Available-for-Sale Debt Securities
Government (A)	$	86	$	(6)	$	15	$	(2)	$	57	$	—	$	16	$	(1)
Corporate (B)	64		(5)		6		(1)		40		(1)		5		—
Total Available-for-Sale Debt Securities	150		(11)		21		(3)		97		(1)		21		(1)

Rabbi Trust Investments	$	150	$	(11)	$	21	$	(3)	$	97	$	(1)	$	21	$	(1)

(A)Debt Securities (Government)—Unrealized gains and losses on these securities are recorded in Accumulated Other Comprehensive Income (Loss). The unrealized losses on PSEG’s Rabbi Trust investments in U.S. Treasury obligations and Federal Agency mortgage-backed securities were caused by interest rate changes. PSEG also has investments in municipal bonds. It is not expected that these securities will settle for less than their amortized cost. PSEG does not intend to sell these securities nor will it be more-likely-than-not required to sell before recovery of their amortized cost. PSEG did not recognize credit losses for U.S. Treasury obligations and Federal Agency mortgage-backed securities because these investments are guaranteed by the U.S. government or an agency of the U.S. government. PSEG did not recognize credit losses for municipal bonds because they are primarily investment grade securities.

(B)Debt Securities (Corporate)—Unrealized gains and losses on these securities are recorded in Accumulated Other Comprehensive Income (Loss). Unrealized losses were due to market declines. It is not expected that these securities would settle for less than their amortized cost. PSEG does not intend to sell these securities nor will it be more-likely-than-not required to sell before recovery of their amortized cost. PSEG did not recognize credit losses for these corporate bonds because they are primarily investment grade.

The proceeds from the sales of and the net gains on securities in the Rabbi Trust Fund were:



	Three Months Ended
	March 31,
		2022		2021
		Millions
Proceeds from Rabbi Trust Sales		$	28	$	65
Net Realized Gains (Losses) on Rabbi Trust:
Gross Realized Gains		$	1	$	5
Gross Realized Losses		(2)		(2)
Net Realized Gains (Losses) on Rabbi Trust (A)		(1)		3
Net Unrealized Gains (Losses) on Equity Securities		(1)		—

Net Gains (Losses) on Rabbi Trust Investments		$	(2)	$	3

(A)The cost of these securities was determined on the basis of specific identification.

The Rabbi Trust debt securities held as of March 31, 2022 had the following maturities:



Time Frame	Fair Value
	Millions
Less than one year	$	—
1 - 5 years	35
6 - 10 years	26
11 - 15 years	8
16 - 20 years	21
Over 20 years	104
Total Rabbi Trust Available-for-Sale Debt Securities	$	194

PSEG periodically assesses individual debt securities whose fair value is less than amortized cost to determine whether the investments are considered to be impaired. For these securities, management considers its intent to sell or requirement to sell a security prior to expected recovery. In those cases where a sale is expected, any impairment would be recorded through earnings. For fixed income securities where there is no intent to sell or likely requirement to sell, management evaluates whether credit loss is a component of the impairment. If so, that portion is recorded through earnings while the noncredit loss component is recorded through Accumulated Other Comprehensive Income (Loss). Any subsequent recoveries of the noncredit loss component of the impairment would be recorded through Accumulated Other Comprehensive Income (Loss). Any subsequent recoveries of the credit loss component would be recognized through earnings. The assessment of fair market value compared to cost is applied on a weighted average basis taking into account various purchase dates and initial cost of the securities.

The fair value of the Rabbi Trust related to PSEG and PSE&G is detailed as follows:



	As of		As of
	March 31, 2022		December 31, 2021
	Millions
PSE&G	$	39	$	43
Other	180		199
Total Rabbi Trust Investments	$	219	$	242

Public Service Electric and Gas Company [Member]