Annual Reports

 
Quarterly Reports

  • 10-Q (Oct 31, 2017)
  • 10-Q (Jul 28, 2017)
  • 10-Q (Apr 28, 2017)
  • 10-Q (Oct 31, 2016)
  • 10-Q (Jul 29, 2016)
  • 10-Q (May 2, 2016)

 
8-K

 
Other

Public Service Enterprise Group 10-Q 2012
PSEG-9/30/2012-Q3
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549 
FORM 10-Q
(Mark One)
ý QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
FOR THE QUARTERLY PERIOD ENDED September 30, 2012
OR
¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
FOR THE TRANSITION PERIOD FROM          TO

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, P.O. Box 1171
Newark, New Jersey 07101-1171
973 430-7000
http://www.pseg.com
  
22-2625848
001-34232
  
PSEG POWER LLC
(A Delaware Limited Liability Company)
80 Park Plaza—T25
Newark, New Jersey 07102-4194
973 430-7000
http://www.pseg.com
  
22-3663480
001-00973
  
PUBLIC SERVICE ELECTRIC AND GAS COMPANY
(A New Jersey Corporation)
80 Park Plaza, P.O. Box 570
Newark, New Jersey 07101-0570
973 430-7000
http://www.pseg.com
  
22-1212800
 
Indicate by check mark whether the registrants (1) have filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrants were required to file such reports), and (2) have been subject to such filing requirements for the past 90 days. Yes ý No ¨
Indicate by check mark whether the registrants have submitted electronically and posted on their corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrants were required to submit and post such files). Yes ý No ¨
Indicate by check mark whether each registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.
Public Service Enterprise Group Incorporated
Large accelerated filer x
Accelerated filer o
Non-accelerated filer o
Smaller reporting company o
 
 
 
 
 
PSEG Power LLC
Large accelerated filer o
Accelerated filer o
Non-accelerated filer x
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
Indicate by check mark whether any of the registrants is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ¨ No ý
As of October 16, 2012, Public Service Enterprise Group Incorporated had outstanding 505,917,472 shares of its sole class of Common Stock, without par value.
As of October 16, 2012, Public Service Electric and Gas Company had issued and outstanding 132,450,344 shares of Common Stock, without nominal or par value, all of which were privately held, beneficially and of record by Public Service Enterprise Group Incorporated.
PSEG Power LLC and Public Service Electric and Gas Company are wholly owned subsidiaries of Public Service Enterprise Group Incorporated and meet the conditions set forth in General Instruction H(1) (a) and (b) of Form 10-Q. Each is filing its Quarterly Report on Form 10-Q with the reduced disclosure format authorized by General Instruction H.




 
  
Page
FORWARD-LOOKING STATEMENTS
 
 
PART I. FINANCIAL INFORMATION
 
 
 
 
Item 1.
Financial Statements
 
 
 
 
 
Notes to Condensed Consolidated Financial Statements
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Item 2.
 
 
 
 
 
Item 3.
Item 4.
 
 
PART II. OTHER INFORMATION
Item 1.
Item 1A.
Item 2.
Item 5.
Item 6.
 


i


FORWARD-LOOKING STATEMENTS
Certain of the matters discussed in this report constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ materially from those anticipated. Such statements are based on management’s beliefs as well as assumptions made by and information currently available to management. When used herein, the words “anticipate,” “intend,” “estimate,” “believe,” “expect,” “plan,” “should,” “hypothetical,” “potential,” “forecast,” “project,” variations of such words and similar expressions are intended to identify forward-looking statements. Factors that may cause actual results to differ are often presented with the forward-looking statements themselves. Other factors that could cause actual results to differ materially from those contemplated in any forward-looking statements made by us herein are discussed in Item 1. Financial Statements—Note 8. Commitments and Contingent Liabilities, Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations, and other factors discussed in filings we make with the United States Securities and Exchange Commission (SEC). These factors include, but are not limited to:
adverse changes in the demand for or the price of the capacity and energy that we sell into wholesale electricity markets,
adverse changes in energy industry law, policies and regulation, including market structures and a potential shift away from competitive markets toward subsidized market mechanisms, transmission planning and cost allocation rules, including rules regarding how transmission is planned and who is permitted to build transmission in the future, and reliability standards,
any inability of our transmission and distribution businesses to obtain adequate and timely rate relief and regulatory approvals from federal and state regulators,
changes in federal and state environmental regulations that could increase our costs or limit our operations,
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 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 balance our energy obligations, available supply and trading risks,
any deterioration in our credit quality or the credit quality of our counterparties, including in our leveraged leases,
availability of capital and credit at commercially reasonable terms and conditions and our ability to meet cash needs,
changes in the cost of, or interruption in the supply of, fuel and other commodities necessary to the operation of our generating units,
delays in receipt of necessary permits and approvals for our construction and development activities,
delays or unforeseen cost escalations in our construction and development activities,
any inability to achieve, or continue to sustain, our expected levels of operating performance,
increase in competition in energy supply markets as well as competition for certain rate-based transmission projects,
any inability to realize anticipated tax benefits or retain tax credits,
challenges associated with recruitment and/or retention of a qualified workforce,
adverse performance of our decommissioning and defined benefit plan trust fund investments and changes in funding requirements, and
changes in technology and customer usage patterns.
All of the forward-looking statements made in this report are qualified by these cautionary statements and we cannot assure you that the results or developments anticipated by management will be realized or even if realized, will have the expected consequences to, or effects on, us or our business prospects, financial condition or results of operations. Readers are cautioned not to place undue reliance on these forward-looking statements in making any investment decision. Forward-looking statements made in this report apply only as of the date of this report. While we may elect to update forward-looking statements from time to time, we specifically disclaim any obligation to do so, even if internal estimates change, unless otherwise required by applicable securities laws.
The forward-looking statements contained in this report are intended to qualify for the safe harbor provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.


ii





PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Millions
(Unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
Nine Months Ended
 
 
 
September 30,
 
September 30,
 
 
 
2012
 
2011
 
2012
 
2011
 
 
OPERATING REVENUES
$
2,402

 
$
2,620

 
$
7,375

 
$
8,443

 
 
OPERATING EXPENSES
 
 
 
 
 
 
 
 
 
Energy Costs
879

 
1,167

 
2,819

 
3,740

 
 
Operation and Maintenance
619

 
603

 
1,876

 
1,829

 
 
Depreciation and Amortization
286

 
263

 
797

 
739

 
 
Taxes Other Than Income Taxes
24

 
31

 
73

 
102

 
 
Total Operating Expenses
1,808

 
2,064

 
5,565

 
6,410

 
 
OPERATING INCOME
594

 
556


1,810


2,033

 
 
Income from Equity Method Investments
7

 
1

 
9

 
8

 
 
Other Income
121

 
45

 
216

 
176

 
 
Other Deductions
(26
)
 
(11
)
 
(61
)
 
(39
)
 
 
Other-Than-Temporary Impairments
(2
)
 
(8
)
 
(14
)
 
(13
)
 
 
Interest Expense
(106
)
 
(117
)
 
(310
)
 
(361
)
 
 
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES
588

 
466

 
1,650

 
1,804

 
 
Income Tax (Expense) Benefit
(241
)
 
(201
)
 
(599
)
 
(757
)
 
 
INCOME FROM CONTINUING OPERATIONS
347

 
265

 
1,051

 
1,047

 
 
Income (Loss) from Discontinued Operations, including Gain on Disposal, net of tax (expense) benefit of $(15) and $(51) for the three and nine months ended 2011

 
29

 

 
96

 
 
NET INCOME
$
347

 
$
294

 
$
1,051

 
$
1,143

 
 
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING (THOUSANDS):
 
 
 
 
 
 
 
 
 
BASIC
505,914

 
505,909

 
505,942

 
505,959

 
 
DILUTED
507,111

 
506,999

 
507,037

 
506,963

 
 
EARNINGS PER SHARE:
 
 
 
 
 
 
 
 
 
BASIC
 
 
 
 
 
 
 
 
 
INCOME FROM CONTINUING OPERATIONS
$
0.69

 
$
0.52

 
$
2.08

 
$
2.07

 
 
NET INCOME
$
0.69

 
$
0.58

 
$
2.08

 
$
2.26

 
 
DILUTED
 
 
 
 
 
 
 
 
 
INCOME FROM CONTINUING OPERATIONS
$
0.68

 
$
0.52

 
$
2.07

 
$
2.06

 
 
NET INCOME
$
0.68

 
$
0.58

 
$
2.07

 
$
2.25

 
 
DIVIDENDS PAID PER SHARE OF COMMON STOCK
$
0.3550

 
$
0.3425

 
$
1.0650

 
$
1.0275

 
 
 
 
 
 
 
 
 
 
 
.
See Notes to Condensed Consolidated Financial Statements.

1


PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Millions
(Unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
Nine Months Ended
 
 
 
September 30,
 
September 30,
 
 
 
2012
 
2011
 
2012
 
2011
 
 
NET INCOME
$
347

 
$
294

 
$
1,051

 
$
1,143

 
 
Other Comprehensive Income (Loss), net of tax
 
 
 
 
 
 
 
 
 
Available-for-Sale Securities, net of tax (expense) benefit of $5, $59, $(16) and $76 for the three and nine months ended 2012 and 2011, respectively
(10
)
 
(58
)
 
12

 
(73
)
 
 
Change in Fair Value of Derivative Instruments, net of tax (expense) benefit of $1, $(9), $(10) and $(8) for the three and nine months ended 2012 and 2011, respectively
(2
)
 
12

 
13

 
11

 
 
Reclassification Adjustments for Net Amounts included in Net Income, net of tax (expense) benefit of $7, $25, $24 and $62 for the three and nine months ended 2012 and 2011, respectively
(8
)
 
(35
)
 
(33
)
 
(91
)
 
 
Pension/OPEB adjustment, net of tax (expense) benefit of $(5), $(4), $(16) and $(34) for the three and nine months ended 2012 and 2011, respectively
8

 
4

 
23

 
53

 
 
Other Comprehensive Income (Loss), net of tax
(12
)
 
(77
)
 
15

 
(100
)
 
 
COMPREHENSIVE INCOME
$
335

 
$
217

 
$
1,066

 
$
1,043

 
 
 
 
 
 
 
 
 
 
 

See Notes to Condensed Consolidated Financial Statements.


2


PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED
CONDENSED CONSOLIDATED BALANCE SHEETS
Millions
(Unaudited)
 
 
 
 
 
 
 
 
 
September 30,
2012
 
December 31,
2011
 
 
ASSETS
 
 
CURRENT ASSETS
 
 
 
 
 
Cash and Cash Equivalents
$
780

 
$
834

 
 
Accounts Receivable, net of allowances of $52 and $56 in 2012 and 2011, respectively
1,044

 
967

 
 
Tax Receivable

 
16

 
 
Unbilled Revenues
215

 
289

 
 
Fuel
657

 
685

 
 
Materials and Supplies, net
416

 
367

 
 
Prepayments
274

 
308

 
 
Derivative Contracts
123

 
156

 
 
Deferred Income Taxes
148

 

 
 
Regulatory Assets
280

 
167

 
 
Other
41

 
122

 
 
Total Current Assets
3,978

 
3,911

 
 
PROPERTY, PLANT AND EQUIPMENT
26,731

 
25,080

 
 
Less: Accumulated Depreciation and Amortization
(7,628
)
 
(7,231
)
 
 
Net Property, Plant and Equipment
19,103

 
17,849

 
 
NONCURRENT ASSETS
 
 
 
 
 
Regulatory Assets
3,336

 
3,805

 
 
Regulatory Assets of Variable Interest Entities (VIEs)
760

 
925

 
 
Long-Term Investments
1,314

 
1,303

 
 
Nuclear Decommissioning Trust (NDT) Fund
1,501

 
1,349

 
 
Other Special Funds
192

 
172

 
 
Goodwill
16

 
16

 
 
Other Intangibles
57

 
131

 
 
Derivative Contracts
144

 
106

 
 
Restricted Cash of VIEs
21

 
22

 
 
Other
284

 
232

 
 
Total Noncurrent Assets
7,625

 
8,061

 
 
TOTAL ASSETS
$
30,706

 
$
29,821

 
 
 
 
 
 
 

See Notes to Condensed Consolidated Financial Statements.


3


PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED
CONDENSED CONSOLIDATED BALANCE SHEETS
Millions
(Unaudited)
 
 
 
 
 
 
 
 
 
September 30,
2012
 
December 31,
2011
 
 
LIABILITIES AND CAPITALIZATION
 
 
CURRENT LIABILITIES
 
 
 
 
 
Long-Term Debt Due Within One Year (includes $50 at fair value in 2011)
$
751

 
$
417

 
 
Securitization Debt of VIEs Due Within One Year
224

 
216

 
 
Accounts Payable
1,012

 
1,184

 
 
Derivative Contracts
51

 
131

 
 
Accrued Interest
119

 
97

 
 
Accrued Taxes
216

 
30

 
 
Deferred Income Taxes

 
170

 
 
Clean Energy Program
89

 
214

 
 
Obligation to Return Cash Collateral
122

 
107

 
 
Regulatory Liabilities
94

 
100

 
 
Other
361

 
291

 
 
Total Current Liabilities
3,039

 
2,957

 
 
NONCURRENT LIABILITIES
 
 
 
 
 
Deferred Income Taxes and Investment Tax Credits (ITC)
6,058

 
5,458

 
 
Regulatory Liabilities
248

 
228

 
 
Regulatory Liabilities of VIEs
10

 
9

 
 
Asset Retirement Obligations
513

 
489

 
 
Other Postretirement Benefit (OPEB) Costs
1,116

 
1,127

 
 
Accrued Pension Costs
629

 
734

 
 
Clean Energy Program

 
39

 
 
Environmental Costs
565

 
643

 
 
Derivative Contracts
112

 
26

 
 
Long-Term Accrued Taxes
166

 
292

 
 
Other
108

 
86

 
 
Total Noncurrent Liabilities
9,525

 
9,131

 
 
COMMITMENTS AND CONTINGENT LIABILITIES (See Note 8)
 
 
 
 
 
CAPITALIZATION
 
 
 
 
 
LONG-TERM DEBT
 
 
 
 
 
Long-Term Debt
6,729

 
6,694

 
 
Securitization Debt of VIEs
561

 
723

 
 
Project Level, Non-Recourse Debt
44

 
44

 
 
Total Long-Term Debt
7,334

 
7,461

 
 
STOCKHOLDERS’ EQUITY
 
 
 
 
 
Common Stock, no par, authorized 1,000,000,000 shares; issued, 2012 and 2011—533,556,660 shares
4,836

 
4,823

 
 
Treasury Stock, at cost, 2012—27,664,188 shares; 2011—27,611,374 shares
(606
)
 
(601
)
 
 
Retained Earnings
6,898

 
6,385

 
 
Accumulated Other Comprehensive Loss
(322
)
 
(337
)
 
 
Total Common Stockholders’ Equity
10,806

 
10,270

 
 
Noncontrolling Interest
2

 
2

 
 
Total Stockholders’ Equity
10,808

 
10,272

 
 
Total Capitalization
18,142

 
17,733

 
 
TOTAL LIABILITIES AND CAPITALIZATION
$
30,706

 
$
29,821

 
 
 
 
 
 
 

See Notes to Condensed Consolidated Financial Statements.


4


PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Millions
(Unaudited)
 
 
 
 
 
 
 
 
 
Nine Months Ended
 
 
 
September 30,
 
 
 
2012
 
2011
 
 
CASH FLOWS FROM OPERATING ACTIVITIES
 
 
 
 
 
Net Income
$
1,051

 
$
1,143

 
 
Adjustments to Reconcile Net Income to Net Cash Flows from Operating Activities:
 
 
 
 
 
Gain on Disposal of Discontinued Operations

 
(122
)
 
 
Depreciation and Amortization
797

 
745

 
 
Amortization of Nuclear Fuel
129

 
114

 
 
Provision for Deferred Income Taxes (Other than Leases) and ITC
221

 
629

 
 
Non-Cash Employee Benefit Plan Costs
203

 
138

 
 
Leveraged Lease Income, Adjusted for Rents Received and Deferred Taxes
(81
)
 
(16
)
 
 
Leveraged Lease Reserve, net of tax

 
170

 
 
Net Realized and Unrealized (Gains) Losses on Energy Contracts and Other Derivatives
116

 
(14
)
 
 
Over (Under) Recovery of Electric Energy Costs (BGS and NTC) and Gas Costs
46

 
100

 
 
Over (Under) Recovery of Societal Benefits Charge (SBC)
(51
)
 
(26
)
 
 
Market Transition Charge Refund
(23
)
 
(47
)
 
 
Cost of Removal
(71
)
 
(43
)
 
 
Net Realized (Gains) Losses and (Income) Expense from NDT Fund
(107
)
 
(110
)
 
 
Net Change in Tax Receivable
16

 
312

 
 
Net Change in Certain Current Assets and Liabilities
305

 
(44
)
 
 
Employee Benefit Plan Funding and Related Payments
(193
)
 
(486
)
 
 
Other
(47
)
 
(34
)
 
 
Net Cash Provided By (Used In) Operating Activities
2,311

 
2,409

 
 
CASH FLOWS FROM INVESTING ACTIVITIES
 
 
 
 
 
Additions to Property, Plant and Equipment
(1,969
)
 
(1,479
)
 
 
Proceeds from Sale of Discontinued Operations

 
687

 
 
Proceeds from Sales of Available-for-Sale Securities
1,473

 
1,088

 
 
Investments in Available-for-Sale Securities
(1,497
)
 
(1,110
)
 
 
Other
(58
)
 
(13
)
 
 
Net Cash Provided By (Used In) Investing Activities
(2,051
)
 
(827
)
 
 
CASH FLOWS FROM FINANCING ACTIVITIES
 
 
 
 
 
Net Change in Commercial Paper and Loans

 
(64
)
 
 
Issuance of Long-Term Debt
850

 
750

 
 
Redemption of Long-Term Debt
(439
)
 
(606
)
 
 
Repayment of Non-Recourse Debt
(1
)
 
(1
)
 
 
Redemption of Securitization Debt
(154
)
 
(147
)
 
 
Cash Dividends Paid on Common Stock
(538
)
 
(520
)
 
 
Other
(32
)
 
(32
)
 
 
Net Cash Provided By (Used In) Financing Activities
(314
)
 
(620
)
 
 
Net Increase (Decrease) in Cash and Cash Equivalents
(54
)
 
962

 
 
Cash and Cash Equivalents at Beginning of Period
834

 
280

 
 
Cash and Cash Equivalents at End of Period
$
780

 
$
1,242

 
 
Supplemental Disclosure of Cash Flow Information:
 
 
 
 
 
Income Taxes Paid (Received)
$
109

 
$
60

 
 
Interest Paid, Net of Amounts Capitalized
$
280

 
$
341

 
 
Accrued Property, Plant and Equipment Expenditures
$
259

 
$
211

 
 
 
 
 
 
 

See Notes to Condensed Consolidated Financial Statements.

5



PSEG POWER LLC
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Millions
(Unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
Nine Months Ended
 
 
 
September 30,
 
September 30,
 
 
 
2012
 
2011
 
2012
 
2011
 
 
OPERATING REVENUES
$
1,038

 
$
1,398

 
$
3,584

 
$
4,650

 
 
OPERATING EXPENSES
 
 
 
 
 
 
 
 
 
Energy Costs
456

 
597

 
1,725

 
2,335

 
 
Operation and Maintenance
255

 
262

 
780

 
810

 
 
Depreciation and Amortization
60

 
56

 
175

 
166

 
 
Total Operating Expenses
771

 
915

 
2,680

 
3,311

 
 
OPERATING INCOME
267

 
483

 
904

 
1,339

 
 
Other Income
104

 
37

 
171

 
156

 
 
Other Deductions
(20
)
 
(10
)
 
(52
)
 
(37
)
 
 
Other-Than-Temporary Impairments
(2
)
 
(8
)
 
(14
)
 
(10
)
 
 
Interest Expense
(35
)
 
(42
)
 
(97
)
 
(134
)
 
 
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES
314

 
460

 
912

 
1,314

 
 
Income Tax (Expense) Benefit
(133
)
 
(187
)
 
(374
)
 
(539
)
 
 
INCOME FROM CONTINUING OPERATIONS
181

 
273

 
538

 
775

 
 
Income (Loss) from Discontinued Operations, including Gain on Disposal, net of tax (expense) benefit of $(15) and $(51) for the three and nine months ended 2011

 
29

 

 
96

 
 
EARNINGS AVAILABLE TO PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED
$
181

 
$
302

 
$
538

 
$
871

 
 
 
 
 
 
 
 
 
 
 

See disclosures regarding PSEG Power LLC included in the Notes to Condensed Consolidated Financial Statements.


6


PSEG POWER LLC
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Millions
(Unaudited)

 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
Nine Months Ended
 
 
 
September 30,
 
September 30,
 
 

2012
 
2011
 
2012
 
2011
 
 
NET INCOME
$
181

 
$
302

 
$
538

 
$
871

 
 
Other Comprehensive Income (Loss), net of tax
 
 
 
 
 
 
 
 
 
Available-for-Sale Securities, net of tax (expense) benefit of $6, $58, $(16) and $77 for the three and nine months ended 2012 and 2011, respectively
(11
)
 
(60
)
 
11

 
(77
)
 
 
Change in Fair Value of Derivative Instruments, net of tax (expense) benefit of $1, $(9), $(10) and $(8) for the three and nine months ended 2012 and 2011, respectively
(2
)
 
12

 
13

 
11

 
 
Reclassification Adjustments for Net Amounts included in Net Income, net of tax (expense) benefit of $7, $25, $24 and $62 for the three and nine months ended 2012 and 2011, respectively
(9
)
 
(35
)
 
(34
)
 
(91
)
 
 
Pension/OPEB adjustment, net of tax (expense) benefit of $(4), $(3), $(14) and $(31) for the three and nine months ended 2012 and 2011, respectively
7

 
3

 
21

 
45

 
 
Other Comprehensive Income (Loss), net of tax
(15
)
 
(80
)
 
11

 
(112
)
 
 
COMPREHENSIVE INCOME
$
166

 
$
222

 
$
549

 
$
759

 
 
 
 
 
 
 
 
 
 
 

See disclosures regarding PSEG Power LLC included in the Notes to Condensed Consolidated Financial Statements.


7


PSEG POWER LLC
CONDENSED CONSOLIDATED BALANCE SHEETS
Millions
(Unaudited)
 
 
 
 
 
 
 
 
 
September 30,
2012
 
December 31,
2011
 
 
ASSETS
 
 
CURRENT ASSETS
 
 
 
 
 
Cash and Cash Equivalents
$
5

 
$
12

 
 
Accounts Receivable
295

 
267

 
 
Accounts Receivable—Affiliated Companies, net
100

 
381

 
 
Short-Term Loan to Affiliate
890

 
907

 
 
Fuel
657

 
685

 
 
Materials and Supplies, net
310

 
272

 
 
Derivative Contracts
102

 
139

 
 
Prepayments
22

 
24

 
 
Total Current Assets
2,381

 
2,687

 
 
PROPERTY, PLANT AND EQUIPMENT
9,564

 
9,191

 
 
Less: Accumulated Depreciation and Amortization
(2,692
)
 
(2,460
)
 
 
Net Property, Plant and Equipment
6,872

 
6,731

 
 
NONCURRENT ASSETS
 
 
 
 
 
Nuclear Decommissioning Trust (NDT) Fund
1,501

 
1,349

 
 
Goodwill
16

 
16

 
 
Other Intangibles
57

 
131

 
 
Other Special Funds
36

 
33

 
 
Derivative Contracts
22

 
55

 
 
Other
109

 
85

 
 
Total Noncurrent Assets
1,741

 
1,669

 
 
TOTAL ASSETS
$
10,994

 
$
11,087

 
 
 
 
 
 
 

See disclosures regarding PSEG Power LLC included in the Notes to Condensed Consolidated Financial Statements.


8


PSEG POWER LLC
CONDENSED CONSOLIDATED BALANCE SHEETS
Millions
(Unaudited)

 
 
 
 
 
 
 
 
September 30,
2012
 
December 31,
2011
 
 
LIABILITIES AND MEMBER’S EQUITY
 
 
CURRENT LIABILITIES
 
 
 
 
 
Long-Term Debt Due Within One Year
$
300

 
$
66

 
 
Accounts Payable
433

 
541

 
 
Derivative Contracts
51

 
124

 
 
Deferred Income Taxes
4

 
53

 
 
Accrued Interest
49

 
32

 
 
Other
90

 
86

 
 
Total Current Liabilities
927

 
902

 
 
NONCURRENT LIABILITIES
 
 
 
 
 
Deferred Income Taxes and Investment Tax Credits (ITC)
1,463

 
1,266

 
 
Asset Retirement Obligations
275

 
259

 
 
Other Postretirement Benefit (OPEB) Costs
189

 
180

 
 
Derivative Contracts
6

 
24

 
 
Accrued Pension Costs
205

 
236

 
 
Long-Term Accrued Taxes
66

 
8

 
 
Other
84

 
83

 
 
Total Noncurrent Liabilities
2,288

 
2,056

 
 
COMMITMENTS AND CONTINGENT LIABILITIES (See Note 8)
 
 
 
 
 
LONG-TERM DEBT
 
 
 
 
 
Total Long-Term Debt
2,386

 
2,685

 
 
MEMBER’S EQUITY
 
 
 
 
 
Contributed Capital
2,028

 
2,028

 
 
Basis Adjustment
(986
)
 
(986
)
 
 
Retained Earnings
4,616

 
4,678

 
 
Accumulated Other Comprehensive Loss
(265
)
 
(276
)
 
 
Total Member’s Equity
5,393

 
5,444

 
 
TOTAL LIABILITIES AND MEMBER’S EQUITY
$
10,994

 
$
11,087

 
 
 
 
 
 
 

See disclosures regarding PSEG Power LLC included in the Notes to Condensed Consolidated Financial Statements.


9


PSEG POWER LLC
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Millions
(Unaudited)
 
 
 
 
 
 
 
 
 
Nine Months Ended
 
 
 
September 30,
 
 
 
2012
 
2011
 
 
CASH FLOWS FROM OPERATING ACTIVITIES
 
 
 
 
 
Net Income
$
538

 
$
871

 
 
Adjustments to Reconcile Net Income to Net Cash Flows from Operating Activities:
 
 
 
 
 
Gain on Disposal of Discontinued Operations

 
(122
)
 
 
Depreciation and Amortization
175

 
173

 
 
Amortization of Nuclear Fuel
129

 
114

 
 
Provision for Deferred Income Taxes and ITC
189

 
74

 
 
Net Realized and Unrealized (Gains) Losses on Energy Contracts and Other Derivatives
116

 
(14
)
 
 
Non-Cash Employee Benefit Plan Costs
53

 
33

 
 
Net Realized (Gains) Losses and (Income) Expense from NDT Fund
(107
)
 
(110
)
 
 
Net Change in Certain Current Assets and Liabilities:
 
 
 
 
 
Fuel, Materials and Supplies
(10
)
 
(82
)
 
 
Margin Deposit
(107
)
 
(63
)
 
 
Accounts Receivable
50

 
157

 
 
Accounts Payable
(31
)
 
(103
)
 
 
Accounts Receivable/Payable-Affiliated Companies, net
193

 
650

 
 
Accrued Interest Payable
17

 
23

 
 
Other Current Assets and Liabilities
2

 
48

 
 
Employee Benefit Plan Funding and Related Payments
(40
)
 
(127
)
 
 
Other
5

 
(35
)
 
 
Net Cash Provided By (Used In) Operating Activities
1,172

 
1,487

 
 
CASH FLOWS FROM INVESTING ACTIVITIES
 
 
 
 
 
Additions to Property, Plant and Equipment
(493
)
 
(530
)
 
 
Proceeds from Sale of Discontinued Operations

 
687

 
 
Proceeds from Sales of Available-for-Sale Securities
1,295

 
1,088

 
 
Investments in Available-for-Sale Securities
(1,315
)
 
(1,106
)
 
 
Short-Term Loan—Affiliated Company, net
17

 
(1,176
)
 
 
Other
(10
)
 
19

&#