Commission File Number | Registrants, State of Incorporation, Address, and Telephone Number | I.R.S. Employer Identification No. | ||
001-09120 | PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED (A New Jersey Corporation) 80 Park Plaza Newark, New Jersey 07102 973 430-7000 http://www.pseg.com | 22-2625848 | ||
001-00973 | PUBLIC SERVICE ELECTRIC AND GAS COMPANY (A New Jersey Corporation) 80 Park Plaza Newark, New Jersey 07102 973 430-7000 http://www.pseg.com | 22-1212800 | ||
001-34232 | PSEG POWER LLC (A Delaware Limited Liability Company) 80 Park Plaza Newark, New Jersey 07102 973 430-7000 http://www.pseg.com | 22-3663480 |
Public Service Enterprise Group Incorporated | Large accelerated filer x | Accelerated filer o | Non-accelerated filer o | Smaller reporting company o |
Public Service Electric and Gas Company | Large accelerated filer o | Accelerated filer o | Non-accelerated filer x | Smaller reporting company o |
PSEG Power LLC | Large accelerated filer o | Accelerated filer o | Non-accelerated filer x | Smaller reporting company o |
Page | ||
FILING FORMAT | ||
PART I. FINANCIAL INFORMATION | ||
Item 1. | Financial Statements | |
Notes to Condensed Consolidated Financial Statements | ||
Note 9. Debt and Credit Facilities | ||
Item 2. | ||
Executive Overview of 2016 and Future Outlook | ||
Item 3. | ||
Item 4. | ||
PART II. OTHER INFORMATION | ||
Item 1. | ||
Item 1A. | ||
Item 2. | ||
Item 5. | ||
Item 6. | ||
• | adverse changes in the demand for or ongoing low pricing of the capacity and energy that we sell into wholesale electricity markets, |
• | adverse changes in energy industry law, policies and regulations, including market structures and transmission planning, |
• | any inability of our transmission and distribution businesses to obtain adequate and timely rate relief and regulatory approvals from federal and state regulators, including prudency reviews, disallowances and changes in authorized returns, |
• | any deterioration in our credit quality or the credit quality of our counterparties, |
• | changes in federal and state environmental regulations and enforcement that could increase our costs or limit our operations, |
• | adverse outcomes of any legal, regulatory or other proceeding, settlement, investigation or claim applicable to us and/or the energy industry, |
• | changes in nuclear regulation and/or general developments in the nuclear power industry, including various impacts from any accidents or incidents experienced at our facilities or by others in the industry, that could limit operations or increase the cost of our nuclear generating units, |
• | actions or activities at one of our nuclear units located on a multi-unit site that might adversely affect our ability to continue to operate that unit or other units located at the same site, |
• | any inability to manage our energy obligations, available supply and risks, |
• | delays or unforeseen cost escalations in our construction and development activities, or the inability to recover the carrying amount of our assets, |
• | availability of capital and credit at commercially reasonable terms and conditions and our ability to meet cash needs, |
• | increases in competition in energy supply markets as well as for transmission projects, |
• | changes in technology, such as distributed generation, storage and micro grids, and greater reliance on these technologies, |
• | changes in customer behaviors, including increases in energy efficiency, net-metering and demand response, |
• | adverse performance of our decommissioning and defined benefit plan trust fund investments and changes in funding requirements, |
• | any equipment failures, accidents, severe weather events or other incidents that impact our ability to provide safe and reliable service to our customers, and any inability to obtain sufficient insurance coverage or recover proceeds of insurance with respect to such events, |
• | acts of terrorism, cybersecurity attacks or intrusions that could adversely impact our businesses, |
• | delays in receipt of necessary permits and approvals for our construction and development activities, |
• | any inability to achieve, or continue to sustain, our expected levels of operating performance, |
• | changes in the cost of, or interruption in the supply of, fuel and other commodities necessary to the operation of our generating units, |
• | an extended economic recession, |
• | an inability to realize anticipated tax benefits or retain tax credits, |
• | challenges associated with recruitment and/or retention of a qualified workforce, and |
• | changes in the credit quality and the ability of lessees to meet their obligations under our domestic leveraged leases. |
Three Months Ended | Six Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||||
OPERATING REVENUES | $ | 1,905 | $ | 2,314 | $ | 4,521 | $ | 5,449 | |||||||||
OPERATING EXPENSES | |||||||||||||||||
Energy Costs | 624 | 668 | 1,460 | 1,762 | |||||||||||||
Operation and Maintenance | 710 | 761 | 1,439 | 1,424 | |||||||||||||
Depreciation and Amortization | 224 | 317 | 448 | 647 | |||||||||||||
Total Operating Expenses | 1,558 | 1,746 | 3,347 | 3,833 | |||||||||||||
OPERATING INCOME | 347 | 568 | 1,174 | 1,616 | |||||||||||||
Income from Equity Method Investments | 4 | 4 | 6 | 7 | |||||||||||||
Other Income | 44 | 76 | 92 | 124 | |||||||||||||
Other Deductions | (10 | ) | (10 | ) | (31 | ) | (22 | ) | |||||||||
Other-Than-Temporary Impairments | (10 | ) | (10 | ) | (20 | ) | (15 | ) | |||||||||
Interest Expense | (97 | ) | (97 | ) | (189 | ) | (195 | ) | |||||||||
INCOME BEFORE INCOME TAXES | 278 | 531 | 1,032 | 1,515 | |||||||||||||
Income Tax Expense | (91 | ) | (186 | ) | (374 | ) | (584 | ) | |||||||||
NET INCOME | $ | 187 | $ | 345 | $ | 658 | $ | 931 | |||||||||
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: | |||||||||||||||||
BASIC | 505 | 506 | 505 | 506 | |||||||||||||
DILUTED | 508 | 508 | 508 | 508 | |||||||||||||
NET INCOME PER SHARE: | |||||||||||||||||
BASIC | $ | 0.37 | $ | 0.68 | $ | 1.30 | $ | 1.84 | |||||||||
DILUTED | $ | 0.37 | $ | 0.68 | $ | 1.30 | $ | 1.83 | |||||||||
DIVIDENDS PAID PER SHARE OF COMMON STOCK | $ | 0.41 | $ | 0.39 | $ | 0.82 | $ | 0.78 | |||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||||
NET INCOME | $ | 187 | $ | 345 | $ | 658 | $ | 931 | |||||||||
Other Comprehensive Income (Loss), net of tax | |||||||||||||||||
Unrealized Gains (Losses) on Available-for-Sale Securities, net of tax (expense) benefit of $(10), $15, $(26) and $2 for the three and six months ended 2016 and 2015, respectively | 10 | (15 | ) | 26 | (1 | ) | |||||||||||
Unrealized Gains (Losses) on Cash Flow Hedges, net of tax (expense) benefit of $0, $0, $(1) and $7 for the three and six months ended 2016 and 2015, respectively | (1 | ) | — | 1 | (9 | ) | |||||||||||
Pension/Other Postretirement Benefit Costs (OPEB) adjustment, net of tax (expense) benefit of $(6), $(6), $(12) and $(12) for the three and six months ended 2016 and 2015, respectively | 8 | 8 | 16 | 16 | |||||||||||||
Other Comprehensive Income (Loss), net of tax | 17 | (7 | ) | 43 | 6 | ||||||||||||
COMPREHENSIVE INCOME | $ | 204 | $ | 338 | $ | 701 | $ | 937 | |||||||||
June 30, 2016 | December 31, 2015 | ||||||||
ASSETS | |||||||||
CURRENT ASSETS | |||||||||
Cash and Cash Equivalents | $ | 648 | $ | 394 | |||||
Accounts Receivable, net of allowances of $65 and $67 in 2016 and 2015, respectively | 988 | 1,068 | |||||||
Tax Receivable | 4 | 305 | |||||||
Unbilled Revenues | 202 | 197 | |||||||
Fuel | 351 | 463 | |||||||
Materials and Supplies, net | 554 | 513 | |||||||
Prepayments | 271 | 135 | |||||||
Derivative Contracts | 152 | 242 | |||||||
Regulatory Assets | 310 | 164 | |||||||
Other | 9 | 13 | |||||||
Total Current Assets | 3,489 | 3,494 | |||||||
PROPERTY, PLANT AND EQUIPMENT | 37,285 | 35,494 | |||||||
Less: Accumulated Depreciation and Amortization | (9,271 | ) | (8,955 | ) | |||||
Net Property, Plant and Equipment | 28,014 | 26,539 | |||||||
NONCURRENT ASSETS | |||||||||
Regulatory Assets | 3,120 | 3,196 | |||||||
Long-Term Investments | 1,218 | 1,233 | |||||||
Nuclear Decommissioning Trust (NDT) Fund | 1,797 | 1,754 | |||||||
Long-Term Tax Receivable | 183 | 171 | |||||||
Long-Term Receivable of Variable Interest Entity (VIE) | 513 | 495 | |||||||
Other Special Funds | 246 | 227 | |||||||
Goodwill | 16 | 16 | |||||||
Other Intangibles | 131 | 102 | |||||||
Derivative Contracts | 76 | 77 | |||||||
Other | 242 | 231 | |||||||
Total Noncurrent Assets | 7,542 | 7,502 | |||||||
TOTAL ASSETS | $ | 39,045 | $ | 37,535 | |||||
June 30, 2016 | December 31, 2015 | ||||||||
LIABILITIES AND CAPITALIZATION | |||||||||
CURRENT LIABILITIES | |||||||||
Long-Term Debt Due Within One Year | $ | 662 | $ | 734 | |||||
Commercial Paper and Loans | — | 364 | |||||||
Accounts Payable | 1,308 | 1,369 | |||||||
Derivative Contracts | 20 | 76 | |||||||
Accrued Interest | 103 | 96 | |||||||
Accrued Taxes | 107 | 42 | |||||||
Clean Energy Program | 200 | 142 | |||||||
Obligation to Return Cash Collateral | 128 | 128 | |||||||
Regulatory Liabilities | 74 | 123 | |||||||
Regulatory Liabilities of VIEs | 22 | 42 | |||||||
Other | 496 | 459 | |||||||
Total Current Liabilities | 3,120 | 3,575 | |||||||
NONCURRENT LIABILITIES | |||||||||
Deferred Income Taxes and Investment Tax Credits (ITC) | 8,545 | 8,166 | |||||||
Regulatory Liabilities | 165 | 175 | |||||||
Asset Retirement Obligations | 693 | 679 | |||||||
OPEB Costs | 1,199 | 1,228 | |||||||
OPEB Costs of Servco | 389 | 375 | |||||||
Accrued Pension Costs | 429 | 487 | |||||||
Accrued Pension Costs of Servco | 118 | 114 | |||||||
Clean Energy Program | 27 | — | |||||||
Environmental Costs | 402 | 415 | |||||||
Derivative Contracts | 14 | 27 | |||||||
Long-Term Accrued Taxes | 171 | 212 | |||||||
Other | 181 | 181 | |||||||
Total Noncurrent Liabilities | 12,333 | 12,059 | |||||||
COMMITMENTS AND CONTINGENT LIABILITIES (See Note 8) | |||||||||
CAPITALIZATION | |||||||||
LONG-TERM DEBT | 10,273 | 8,834 | |||||||
STOCKHOLDERS’ EQUITY | |||||||||
Common Stock, no par, authorized 1,000 shares; issued, 2016 and 2015—534 shares | 4,919 | 4,915 | |||||||
Treasury Stock, at cost, 2016—29 shares; 2015—28 shares | (709 | ) | (671 | ) | |||||
Retained Earnings | 9,360 | 9,117 | |||||||
Accumulated Other Comprehensive Loss | (252 | ) | (295 | ) | |||||
Total Common Stockholders’ Equity | 13,318 | 13,066 | |||||||
Noncontrolling Interest | 1 | 1 | |||||||
Total Stockholders’ Equity | 13,319 | 13,067 | |||||||
Total Capitalization | 23,592 | 21,901 | |||||||
TOTAL LIABILITIES AND CAPITALIZATION | $ | 39,045 | $ | 37,535 | |||||
Six Months Ended | |||||||||
June 30, | |||||||||
2016 | 2015 | ||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||
Net Income | $ | 658 | $ | 931 | |||||
Adjustments to Reconcile Net Income to Net Cash Flows from Operating Activities: | |||||||||
Depreciation and Amortization | 448 | 647 | |||||||
Amortization of Nuclear Fuel | 105 | 106 | |||||||
Provision for Deferred Income Taxes (Other than Leases) and ITC | 334 | 170 | |||||||
Non-Cash Employee Benefit Plan Costs | 63 | 81 | |||||||
Leveraged Lease (Income) Loss, Adjusted for Rents Received and Deferred Taxes | (30 | ) | (22 | ) | |||||
Net Unrealized (Gains) Losses on Energy Contracts and Other Derivatives | 153 | (9 | ) | ||||||
Change in Accrued Storm Costs | (1 | ) | 15 | ||||||
Net Change in Other Regulatory Assets and Liabilities | (124 | ) | (53 | ) | |||||
Cost of Removal | (74 | ) | (58 | ) | |||||
Net Realized (Gains) Losses and (Income) Expense from NDT Fund | (2 | ) | (21 | ) | |||||
Net Change in Certain Current Assets and Liabilities: | |||||||||
Tax Receivable | 301 | 188 | |||||||
Accrued Taxes | 94 | 71 | |||||||
Margin Deposit | (46 | ) | 69 | ||||||
Other Current Assets and Liabilities | (120 | ) | 98 | ||||||
Employee Benefit Plan Funding and Related Payments | (78 | ) | (67 | ) | |||||
Other | 41 | 88 | |||||||
Net Cash Provided By (Used In) Operating Activities | 1,722 | 2,234 | |||||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||||
Additions to Property, Plant and Equipment | (1,971 | ) | (1,743 | ) | |||||
Proceeds from Sales of Available-for-Sale Securities | 392 | 885 | |||||||
Investments in Available-for-Sale Securities | (407 | ) | (918 | ) | |||||
Other | (18 | ) | 3 | ||||||
Net Cash Provided By (Used In) Investing Activities | (2,004 | ) | (1,773 | ) | |||||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||
Net Change in Commercial Paper and Loans | (364 | ) | — | ||||||
Issuance of Long-Term Debt | 1,550 | 600 | |||||||
Redemption of Long-Term Debt | (171 | ) | (300 | ) | |||||
Redemption of Securitization Debt | — | (125 | ) | ||||||
Cash Dividends Paid on Common Stock | (415 | ) | (394 | ) | |||||
Other | (64 | ) | (47 | ) | |||||
Net Cash Provided By (Used In) Financing Activities | 536 | (266 | ) | ||||||
Net Increase (Decrease) in Cash and Cash Equivalents | 254 | 195 | |||||||
Cash and Cash Equivalents at Beginning of Period | 394 | 402 | |||||||
Cash and Cash Equivalents at End of Period | $ | 648 | $ | 597 | |||||
Supplemental Disclosure of Cash Flow Information: | |||||||||
Income Taxes Paid (Received) | $ | (276 | ) | $ | 184 | ||||
Interest Paid, Net of Amounts Capitalized | $ | 176 | $ | 195 | |||||
Accrued Property, Plant and Equipment Expenditures | $ | 513 | $ | 324 | |||||
Three Months Ended | Six Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||||
OPERATING REVENUES | $ | 1,350 | $ | 1,466 | $ | 3,062 | $ | 3,468 | |||||||||
OPERATING EXPENSES | |||||||||||||||||
Energy Costs | 529 | 544 | 1,258 | 1,436 | |||||||||||||
Operation and Maintenance | 352 | 368 | 734 | 780 | |||||||||||||
Depreciation and Amortization | 136 | 234 | 275 | 481 | |||||||||||||
Total Operating Expenses | 1,017 | 1,146 | 2,267 | 2,697 | |||||||||||||
OPERATING INCOME | 333 | 320 | 795 | 771 | |||||||||||||
Other Income | 19 | 19 | 39 | 37 | |||||||||||||
Other Deductions | (1 | ) | (1 | ) | (2 | ) | (2 | ) | |||||||||
Interest Expense | (74 | ) | (67 | ) | (142 | ) | (136 | ) | |||||||||
INCOME BEFORE INCOME TAXES | 277 | 271 | 690 | 670 | |||||||||||||
Income Tax Expense | (98 | ) | (104 | ) | (249 | ) | (261 | ) | |||||||||
NET INCOME | $ | 179 | $ | 167 | $ | 441 | $ | 409 | |||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||||
NET INCOME | $ | 179 | $ | 167 | $ | 441 | $ | 409 | |||||||||
Unrealized Gains (Losses) on Available-for-Sale Securities, net of tax (expense) benefit of $0 and $0 for the three and six months ended 2016 and 2015, respectively | 1 | (1 | ) | 1 | (1 | ) | |||||||||||
COMPREHENSIVE INCOME | $ | 180 | $ | 166 | $ | 442 | $ | 408 | |||||||||
June 30, 2016 | December 31, 2015 | ||||||||
ASSETS | |||||||||
CURRENT ASSETS | |||||||||
Cash and Cash Equivalents | $ | 168 | $ | 198 | |||||
Accounts Receivable, net of allowances of $65 and $67 in 2016 and 2015, respectively | 736 | 787 | |||||||
Accounts Receivable—Affiliated Companies | — | 222 | |||||||
Unbilled Revenues | 202 | 197 | |||||||
Materials and Supplies | 162 | 148 | |||||||
Prepayments | 196 | 31 | |||||||
Regulatory Assets | 310 | 164 | |||||||
Derivative Contracts | — | 13 | |||||||
Other | 8 | 9 | |||||||
Total Current Assets | 1,782 | 1,769 | |||||||
PROPERTY, PLANT AND EQUIPMENT | 24,976 | 23,732 | |||||||
Less: Accumulated Depreciation and Amortization | (5,627 | ) | (5,504 | ) | |||||
Net Property, Plant and Equipment | 19,349 | 18,228 | |||||||
NONCURRENT ASSETS | |||||||||
Regulatory Assets | 3,120 | 3,196 | |||||||
Long-Term Investments | 316 | 330 | |||||||
Other Special Funds | 57 | 49 | |||||||
Other | 113 | 105 | |||||||
Total Noncurrent Assets | 3,606 | 3,680 | |||||||
TOTAL ASSETS | $ | 24,737 | $ | 23,677 | |||||
June 30, 2016 | December 31, 2015 | ||||||||
LIABILITIES AND CAPITALIZATION | |||||||||
CURRENT LIABILITIES | |||||||||
Long-Term Debt Due Within One Year | $ | 100 | $ | 171 | |||||
Commercial Paper and Loans | — | 153 | |||||||
Accounts Payable | 680 | 724 | |||||||
Accounts Payable—Affiliated Companies | 179 | 292 | |||||||
Accrued Interest | 73 | 70 | |||||||
Clean Energy Program | 200 | 142 | |||||||
Derivative Contracts | 2 | — | |||||||
Obligation to Return Cash Collateral | 127 | 128 | |||||||
Regulatory Liabilities | 74 | 123 | |||||||
Regulatory Liabilities of VIEs | 22 | 42 | |||||||
Other | 339 | 297 | |||||||
Total Current Liabilities | 1,796 | 2,142 | |||||||
NONCURRENT LIABILITIES | |||||||||
Deferred Income Taxes and ITC | 5,503 | 5,181 | |||||||
OPEB Costs | 904 | 937 | |||||||
Accrued Pension Costs | 165 | 202 | |||||||
Regulatory Liabilities | 165 | 175 | |||||||
Clean Energy Program | 27 | — | |||||||
Environmental Costs | 336 | 365 | |||||||
Asset Retirement Obligations | 220 | 218 | |||||||
Derivative Contracts | — | 11 | |||||||
Long-Term Accrued Taxes | 99 | 109 | |||||||
Other | 113 | 114 | |||||||
Total Noncurrent Liabilities | 7,532 | 7,312 | |||||||
COMMITMENTS AND CONTINGENT LIABILITIES (See Note 8) | |||||||||
CAPITALIZATION | |||||||||
LONG-TERM DEBT | 7,394 | 6,650 | |||||||
STOCKHOLDER’S EQUITY | |||||||||
Common Stock; 150 shares authorized; issued and outstanding, 2016 and 2015—132 shares | 892 | 892 | |||||||
Contributed Capital | 695 | 695 | |||||||
Basis Adjustment | 986 | 986 | |||||||
Retained Earnings | 5,440 | 4,999 | |||||||
Accumulated Other Comprehensive Income | 2 | 1 | |||||||
Total Stockholder’s Equity | 8,015 | 7,573 | |||||||
Total Capitalization | 15,409 | 14,223 | |||||||
TOTAL LIABILITIES AND CAPITALIZATION | $ | 24,737 | $ | 23,677 | |||||
Six Months Ended | |||||||||
June 30, | |||||||||
2016 | 2015 | ||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||
Net Income | $ | 441 | $ | 409 | |||||
Adjustments to Reconcile Net Income to Net Cash Flows from Operating Activities: | |||||||||
Depreciation and Amortization | 275 | 481 | |||||||
Provision for Deferred Income Taxes and ITC | 290 | 79 | |||||||
Non-Cash Employee Benefit Plan Costs | 36 | 48 | |||||||
Cost of Removal | (74 | ) | (58 | ) | |||||
Change in Accrued Storm Costs | (1 | ) | 15 | ||||||
Net Change in Other Regulatory Assets and Liabilities | (124 | ) | (53 | ) | |||||
Net Change in Certain Current Assets and Liabilities: | |||||||||
Accounts Receivable and Unbilled Revenues | 50 | 53 | |||||||
Materials and Supplies | (14 | ) | (10 | ) | |||||
Prepayments | (165 | ) | (162 | ) | |||||
Accounts Payable | (29 | ) | 48 | ||||||
Accounts Receivable/Payable—Affiliated Companies, net | 181 | 154 | |||||||
Other Current Assets and Liabilities | 17 | (27 | ) | ||||||
Employee Benefit Plan Funding and Related Payments | (62 | ) | (55 | ) | |||||
Other | (13 | ) | (13 | ) | |||||
Net Cash Provided By (Used In) Operating Activities | 808 | 909 | |||||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||||
Additions to Property, Plant and Equipment | (1,355 | ) | (1,230 | ) | |||||
Proceeds from Sales of Available-for-Sale Securities | 12 | 12 | |||||||
Investments in Available-for-Sale Securities | (13 | ) | (14 | ) | |||||
Other | 2 | 12 | |||||||
Net Cash Provided By (Used In) Investing Activities | (1,354 | ) | (1,220 | ) | |||||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||
Net Change in Short-Term Debt | (153 | ) | — | ||||||
Issuance of Long-Term Debt | 850 | 600 | |||||||
Redemption of Long-Term Debt | (171 | ) | (300 | ) | |||||
Redemption of Securitization Debt | — | (125 | ) | ||||||
Other | (10 | ) | (8 | ) | |||||
Net Cash Provided By (Used In) Financing Activities | 516 | 167 | |||||||
Net Increase (Decrease) In Cash and Cash Equivalents | (30 | ) | (144 | ) | |||||
Cash and Cash Equivalents at Beginning of Period | 198 | 310 | |||||||
Cash and Cash Equivalents at End of Period | $ | 168 | $ | 166 | |||||
Supplemental Disclosure of Cash Flow Information: | |||||||||
Income Taxes Paid (Received) | $ | (255 | ) | $ | (74 | ) | |||
Interest Paid, Net of Amounts Capitalized | $ | 134 | $ | 131 | |||||
Accrued Property, Plant and Equipment Expenditures | $ | 381 | $ | 282 | |||||
Three Months Ended | Six Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||||
OPERATING REVENUES | $ | 714 | $ | 1,025 | $ | 2,027 | $ | 2,750 | |||||||||
OPERATING EXPENSES | |||||||||||||||||
Energy Costs | 381 | 409 | 1,019 | 1,302 | |||||||||||||
Operation and Maintenance | 265 | 313 | 518 | 485 | |||||||||||||
Depreciation and Amortization | 80 | 75 | 159 | 151 | |||||||||||||
Total Operating Expenses | 726 | 797 | 1,696 | 1,938 | |||||||||||||
OPERATING INCOME (LOSS) | (12 | ) | 228 | 331 | 812 | ||||||||||||
Income from Equity Method Investments | 4 | 5 | 6 | 8 | |||||||||||||
Other Income | 25 | 55 | 51 | 84 | |||||||||||||
Other Deductions | (9 | ) | (7 | ) | (27 | ) | (18 | ) | |||||||||
Other-Than-Temporary Impairments | (10 | ) | (10 | ) | (20 | ) | (15 | ) | |||||||||
Interest Expense | (20 | ) | (33 | ) | (42 | ) | (64 | ) | |||||||||
INCOME (LOSS) BEFORE INCOME TAXES | (22 | ) | 238 | 299 | 807 | ||||||||||||
Income Tax Benefit (Expense) | 11 | (72 | ) | (118 | ) | (306 | ) | ||||||||||
NET INCOME (LOSS) | $ | (11 | ) | $ | 166 | $ | 181 | $ | 501 | ||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||||
NET INCOME (LOSS) | $ | (11 | ) | $ | 166 | $ | 181 | $ | 501 | ||||||||
Other Comprehensive Income (Loss), net of tax | |||||||||||||||||
Unrealized Gains (Losses) on Available-for-Sale Securities, net of tax (expense) benefit of $(9), $14, $(25) and $1 for the three and six months ended 2016 and 2015, respectively | 9 | (14 | ) | 25 | — | ||||||||||||
Unrealized Gains (Losses) on Cash Flow Hedges, net of tax (expense) benefit of $0, $0, $0 and $7 for the three and six months ended 2016 and 2015, respectively | — | — | — | (9 | ) | ||||||||||||
Pension/OPEB adjustment, net of tax (expense) benefit of $(5), $(5), $(10) and $(10) for the three and six months ended 2016 and 2015, respectively | 7 | 7 | 14 | 14 | |||||||||||||
Other Comprehensive Income (Loss), net of tax | 16 | (7 | ) | 39 | 5 | ||||||||||||
COMPREHENSIVE INCOME | $ | 5 | $ | 159 | $ | 220 | $ | 506 | |||||||||
June 30, 2016 | December 31, 2015 | ||||||||
ASSETS | |||||||||
CURRENT ASSETS | |||||||||
Cash and Cash Equivalents | $ | 16 | $ | 12 | |||||
Accounts Receivable | 202 | 217 | |||||||
Accounts Receivable—Affiliated Companies | 94 | 276 | |||||||
Short-Term Loan to Affiliate | 1,335 | 363 | |||||||
Fuel | 351 | 463 | |||||||
Materials and Supplies, net | 389 | 363 | |||||||
Derivative Contracts | 150 | 223 | |||||||
Prepayments | 7 | 25 | |||||||
Other | 4 | 7 | |||||||
Total Current Assets | 2,548 | 1,949 | |||||||
PROPERTY, PLANT AND EQUIPMENT | 11,969 | 11,354 | |||||||
Less: Accumulated Depreciation and Amortization | (3,491 | ) | (3,227 | ) | |||||
Net Property, Plant and Equipment | 8,478 | 8,127 | |||||||
NONCURRENT ASSETS | |||||||||
NDT Fund | 1,797 | 1,754 | |||||||
Long-Term Investments | 112 | 119 | |||||||
Goodwill | 16 | 16 | |||||||
Other Intangibles | 131 | 102 | |||||||
Other Special Funds | 60 | 55 | |||||||
Derivative Contracts | 76 | 77 | |||||||
Other | 60 | 51 | |||||||
Total Noncurrent Assets | 2,252 | 2,174 | |||||||
TOTAL ASSETS | $ | 13,278 | $ | 12,250 | |||||
June 30, 2016 | December 31, 2015 | ||||||||
LIABILITIES AND MEMBER’S EQUITY | |||||||||
CURRENT LIABILITIES | |||||||||
Long-Term Debt Due Within One Year | $ | 553 | $ | 553 | |||||
Accounts Payable | 466 | 432 | |||||||
Accounts Payable—Affiliated Companies | 102 | 33 | |||||||
Derivative Contracts | 17 | 76 | |||||||
Accrued Interest | 29 | 25 | |||||||
Other | 96 | 107 | |||||||
Total Current Liabilities | 1,263 | 1,226 | |||||||
NONCURRENT LIABILITIES | |||||||||
Deferred Income Taxes and ITC | 2,418 | 2,347 | |||||||
Asset Retirement Obligations | 470 | 457 | |||||||
OPEB Costs | 234 | 230 | |||||||
Derivative Contracts | 14 | 16 | |||||||
Accrued Pension Costs | 151 | 166 | |||||||
Long-Term Accrued Taxes | 22 | 35 | |||||||
Other | 104 | 87 | |||||||
Total Noncurrent Liabilities | 3,413 | 3,338 | |||||||
COMMITMENTS AND CONTINGENT LIABILITIES (See Note 8) | |||||||||
LONG-TERM DEBT | 2,380 | 1,684 | |||||||
MEMBER’S EQUITY | |||||||||
Contributed Capital | 2,214 | 2,214 | |||||||
Basis Adjustment | (986 | ) | (986 | ) | |||||
Retained Earnings | 5,195 | 5,014 | |||||||
Accumulated Other Comprehensive Loss | (201 | ) | (240 | ) | |||||
Total Member’s Equity | 6,222 | 6,002 | |||||||
TOTAL LIABILITIES AND MEMBER’S EQUITY | $ | 13,278 | $ | 12,250 | |||||
Six Months Ended | |||||||||
June 30, | |||||||||
2016 | 2015 | ||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||
Net Income | $ | 181 | $ | 501 | |||||
Adjustments to Reconcile Net Income to Net Cash Flows from Operating Activities: | |||||||||
Depreciation and Amortization | 159 | 151 | |||||||
Amortization of Nuclear Fuel | 105 | 106 | |||||||
Provision for Deferred Income Taxes and ITC | 37 | 64 | |||||||
Net Unrealized (Gains) Losses on Energy Contracts and Other Derivatives | 153 | (9 | ) | ||||||
Non-Cash Employee Benefit Plan Costs | 19 | 24 | |||||||
Net Realized (Gains) Losses and (Income) Expense from NDT Fund | (2 | ) | (21 | ) | |||||
Net Change in Certain Current Assets and Liabilities: | |||||||||
Fuel, Materials and Supplies | 86 | 209 | |||||||
Margin Deposit | (46 | ) | 69 | ||||||
Accounts Receivable | (12 | ) | 76 | ||||||
Accounts Payable | (10 | ) | (62 | ) | |||||
Accounts Receivable/Payable—Affiliated Companies, net | 179 | 123 | |||||||
Other Current Assets and Liabilities | 11 | (21 | ) | ||||||
Employee Benefit Plan Funding and Related Payments | (10 | ) | (7 | ) | |||||
Other | 67 | 89 | |||||||
Net Cash Provided By (Used In) Operating Activities | 917 | 1,292 | |||||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||||
Additions to Property, Plant and Equipment | (598 | ) | (487 | ) | |||||
Proceeds from Sales of Available-for-Sale Securities | 346 | 837 | |||||||
Investments in Available-for-Sale Securities | (359 | ) | (854 | ) | |||||
Short-Term Loan—Affiliated Company, net | (972 | ) | (366 | ) | |||||
Other | (24 | ) | (17 | ) | |||||
Net Cash Provided By (Used In) Investing Activities | (1,607 | ) | (887 | ) | |||||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||
Issuance of Long-Term Debt | 700 | — | |||||||
Cash Dividend Paid | — | (400 | ) | ||||||
Other | (6 | ) | (2 | ) | |||||
Net Cash Provided By (Used In) Financing Activities | 694 | (402 | ) | ||||||
Net Increase (Decrease) in Cash and Cash Equivalents | 4 | 3 | |||||||
Cash and Cash Equivalents at Beginning of Period | 12 | 9 | |||||||
Cash and Cash Equivalents at End of Period | $ | 16 | $ | 12 | |||||
Supplemental Disclosure of Cash Flow Information: | |||||||||
Income Taxes Paid (Received) | $ | (53 | ) | $ | 218 | ||||
Interest Paid, Net of Amounts Capitalized | $ | 38 | $ | 62 | |||||
Accrued Property, Plant and Equipment Expenditures | $ | 132 | $ | 42 | |||||
• | PSE&G—which is a public utility engaged principally in the transmission of electricity and distribution of electricity and natural gas in certain areas of New Jersey. PSE&G is subject to regulation by the New Jersey Board of Public Utilities (BPU) and the Federal Energy Regulatory Commission (FERC). PSE&G also invests in solar generation projects and has implemented energy efficiency and demand response programs in New Jersey, which are regulated by the BPU. |
• | Power—which is a multi-regional, wholesale energy supply company that integrates its generating asset operations and gas supply commitments with its wholesale energy, fuel supply and energy transacting functions primarily in the Northeast and Mid-Atlantic United States through its principal direct wholly owned subsidiaries. Power’s subsidiaries are subject to regulation by FERC, the Nuclear Regulatory Commission (NRC), the Environmental Protection Agency (EPA) and the states in which they operate. |