Annual Reports

 
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  • 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)
  • 10-Q (Oct 30, 2015)

 
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Public Service Enterprise Group 10-Q 2015
PSEG-6/30/2015-Q2
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 June 30, 2015
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
001-00973
  
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
001-34232
  
PSEG POWER LLC
(A Delaware Limited Liability Company)
80 Park Plaza
Newark, New Jersey 07102-4194
973 430-7000
http://www.pseg.com
  
22-3663480
 
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
 
 
 
 
 
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
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 July 21, 2015, Public Service Enterprise Group Incorporated had outstanding 505,874,772 shares of its sole class of Common Stock, without par value.
As of July 21, 2015, 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.
Public Service Electric and Gas Company and PSEG Power LLC 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
 
 
PART I. FINANCIAL INFORMATION
 
Item 1.
Financial Statements
 
 
 
 
 
Notes to Condensed Consolidated Financial Statements
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Item 2.
 
Executive Overview of 2015 and Future Outlook
 
 
 
 
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 about our and our subsidiaries' future performance, including, without limitation, future revenues, earnings, strategies, prospects, consequences and all other statements that are not purely historical 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 filings we make with the United States Securities and Exchange Commission (SEC), including our Annual Report on Form 10-K and subsequent reports on Form 10-Q and Form 8-K and available on our website: http://www.pseg.com. 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 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,
changes in federal and state environmental regulations and enforcement 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 manage our energy obligations, available supply and risks,
adverse outcomes of any legal, regulatory or other proceeding, settlement, investigation or claim applicable to us and/or the energy industry,
any deterioration in our credit quality or the credit quality of our counterparties,
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,
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,
increases in competition in energy supply markets as well as for 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,
changes in technology, such as distributed generation and micro grids, and greater reliance on these technologies, and
changes in customer behaviors, including increases in energy efficiency, net-metering and demand response.

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, except per share data
(Unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
Six Months Ended
 
 
 
June 30,
 
June 30,
 
 
 
2015
 
2014
 
2015
 
2014
 
 
OPERATING REVENUES
$
2,314

 
$
2,249

 
$
5,449

 
$
5,472

 
 
OPERATING EXPENSES
 
 
 
 
 
 
 
 
 
Energy Costs
668

 
789

 
1,762

 
2,145

 
 
Operation and Maintenance
761

 
800

 
1,424

 
1,656

 
 
Depreciation and Amortization
317

 
295

 
647

 
601

 
 
Total Operating Expenses
1,746

 
1,884

 
3,833

 
4,402

 
 
OPERATING INCOME
568

 
365

 
1,616

 
1,070

 
 
Income from Equity Method Investments
4

 
3

 
7

 
7

 
 
Other Income
76

 
62

 
124

 
110

 
 
Other Deductions
(10
)
 
(10
)
 
(22
)
 
(22
)
 
 
Other-Than-Temporary Impairments
(10
)
 
(2
)
 
(15
)
 
(4
)
 
 
Interest Expense
(97
)
 
(94
)
 
(195
)
 
(191
)
 
 
INCOME BEFORE INCOME TAXES
531

 
324

 
1,515

 
970

 
 
Income Tax Expense
(186
)
 
(112
)
 
(584
)
 
(372
)
 
 
NET INCOME
$
345

 
$
212

 
$
931

 
$
598

 
 
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
 
 
 
 
 
 
 
 
 
BASIC
506

 
506

 
506

 
506

 
 
DILUTED
508

 
508

 
508

 
508

 
 
NET INCOME PER SHARE:
 
 
 
 
 
 
 
 
 
BASIC
$
0.68

 
$
0.42

 
$
1.84

 
$
1.18

 
 
DILUTED
$
0.68

 
$
0.42

 
$
1.83

 
$
1.18

 
 
DIVIDENDS PAID PER SHARE OF COMMON STOCK
$
0.39

 
$
0.37

 
$
0.78

 
$
0.74

 
 
 
 
 
 
 
 
 
 
 

See Notes to Condensed Consolidated Financial Statements.

1


PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Millions
(Unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
Six Months Ended
 
 
 
June 30,
 
June 30,
 
 
 
2015
 
2014
 
2015
 
2014
 
 
NET INCOME
$
345

 
$
212

 
$
931

 
$
598

 
 
Other Comprehensive Income (Loss), net of tax
 
 
 
 
 
 
 
 
 
Unrealized Gains (Losses) on Available-for-Sale Securities, net of tax (expense) benefit of $15, $(9), $2 and $(12) for the three and six months ended 2015 and 2014, respectively
(15
)
 
11

 
(1
)
 
13

 
 
Unrealized Gains (Losses) on Cash Flow Hedges, net of tax (expense) benefit of $0, $0, $7, and $(2) for the three and six months ended 2015 and 2014, respectively

 
1

 
(9
)
 
3

 
 
Pension/Other Postretirement Benefit Costs (OPEB) adjustment, net of tax (expense) benefit of $(6), $(1), $(12) and $(3) for three and six months ended 2015 and 2014, respectively
8

 
2

 
16

 
6

 
 
Other Comprehensive Income (Loss), net of tax
(7
)
 
14

 
6

 
22

 
 
COMPREHENSIVE INCOME
$
338

 
$
226

 
$
937

 
$
620

 
 
 
 
 
 
 
 
 
 
 

See Notes to Condensed Consolidated Financial Statements.


2


PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED
CONDENSED CONSOLIDATED BALANCE SHEETS
Millions
(Unaudited)
 
 
 
 
 
 
 
 
 
June 30,
2015
 
December 31,
2014
 
 
ASSETS
 
 
CURRENT ASSETS
 
 
 
 
 
Cash and Cash Equivalents
$
597

 
$
402

 
 
Accounts Receivable, net of allowances of $60 and $52 in 2015 and 2014, respectively
1,126

 
1,254

 
 
Tax Receivable
23

 
211

 
 
Unbilled Revenues
247

 
284

 
 
Fuel
358

 
538

 
 
Materials and Supplies, net
466

 
484

 
 
Prepayments
272

 
108

 
 
Derivative Contracts
155

 
240

 
 
Deferred Income Taxes

 
11

 
 
Regulatory Assets
235

 
323

 
 
Regulatory Assets of Variable Interest Entities (VIEs)
123

 
249

 
 
Other
25

 
15

 
 
Total Current Assets
3,627

 
4,119

 
 
PROPERTY, PLANT AND EQUIPMENT
33,603

 
32,196

 
 
     Less: Accumulated Depreciation and Amortization
(8,796
)
 
(8,607
)
 
 
Net Property, Plant and Equipment
24,807

 
23,589

 
 
NONCURRENT ASSETS
 
 
 
 
 
Regulatory Assets
3,170

 
3,192

 
 
Long-Term Investments
1,273

 
1,307

 
 
Nuclear Decommissioning Trust (NDT) Fund
1,792

 
1,780

 
 
Long-Term Tax Receivable
165

 
64

 
 
Long-Term Receivable of VIE
602

 
580

 
 
Other Special Funds
234

 
212

 
 
Goodwill
16

 
16

 
 
Other Intangibles
101

 
84

 
 
Derivative Contracts
107

 
77

 
 
Restricted Cash of VIEs
25

 
24

 
 
Other
293

 
289

 
 
Total Noncurrent Assets
7,778

 
7,625

 
 
TOTAL ASSETS
$
36,212

 
$
35,333

 
 
 
 
 
 
 

See Notes to Condensed Consolidated Financial Statements.


3


PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED
CONDENSED CONSOLIDATED BALANCE SHEETS
Millions
(Unaudited)
 
 
 
 
 
 
 
 
 
June 30,
2015
 
December 31,
2014
 
 
LIABILITIES AND CAPITALIZATION
 
 
CURRENT LIABILITIES
 
 
 
 
 
Long-Term Debt Due Within One Year
$
491

 
$
624

 
 
Securitization Debt of VIEs Due Within One Year
134

 
259

 
 
Accounts Payable
1,156

 
1,178

 
 
Derivative Contracts
72

 
132

 
 
Accrued Interest
96

 
95

 
 
Accrued Taxes
148

 
21

 
 
Deferred Income Taxes
14

 
173

 
 
Clean Energy Program
200

 
142

 
 
Obligation to Return Cash Collateral
128

 
121

 
 
Regulatory Liabilities
143

 
186

 
 
Other
525

 
547

 
 
Total Current Liabilities
3,107

 
3,478

 
 
NONCURRENT LIABILITIES
 
 
 
 
 
Deferred Income Taxes and Investment Tax Credits (ITC)
7,578

 
7,303

 
 
Regulatory Liabilities
176

 
258

 
 
Regulatory Liabilities of VIEs
47

 
39

 
 
Asset Retirement Obligations
765

 
743

 
 
Other Postretirement Benefit (OPEB) Costs
1,254

 
1,277

 
 
OPEB Costs of Servco
471

 
452

 
 
Accrued Pension Costs
392

 
440

 
 
Accrued Pension Costs of Servco
128

 
126

 
 
Clean Energy Program
27

 

 
 
Environmental Costs
421

 
417

 
 
Derivative Contracts
24

 
33

 
 
Long-Term Accrued Taxes
282

 
208

 
 
Other
143

 
112

 
 
Total Noncurrent Liabilities
11,708

 
11,408

 
 
COMMITMENTS AND CONTINGENT LIABILITIES (See Note 8)


 


 
 
CAPITALIZATION

 
 
 
 
LONG-TERM DEBT
 
 
 
 
 
Total Long-Term Debt
8,689

 
8,261

 
 
STOCKHOLDERS’ EQUITY

 
 
 
 
Common Stock, no par, authorized 1,000,000,000 shares; issued, 2015 and 2014—533,556,660 shares
4,883

 
4,876

 
 
Treasury Stock, at cost, 2015— 27,743,506 shares; 2014— 27,720,068 shares
(663
)
 
(635
)
 
 
Retained Earnings
8,764

 
8,227

 
 
Accumulated Other Comprehensive Loss
(277
)
 
(283
)
 
 
Total Common Stockholders’ Equity
12,707

 
12,185

 
 
Noncontrolling Interest
1

 
1

 
 
Total Stockholders’ Equity
12,708

 
12,186

 
 
Total Capitalization
21,397

 
20,447

 
 
TOTAL LIABILITIES AND CAPITALIZATION
$
36,212

 
$
35,333

 
 
 


 
 
 

See Notes to Condensed Consolidated Financial Statements.

4


PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Millions
(Unaudited)
 
 
 
 
 
 
 
 
Six Months Ended
 
 
 
June 30,
 
 
 
2015
 
2014
 
 
CASH FLOWS FROM OPERATING ACTIVITIES
 
 
 
 
 
Net Income
$
931

 
$
598

 
 
Adjustments to Reconcile Net Income to Net Cash Flows from Operating Activities:
 
 
 
 
 
Depreciation and Amortization
647

 
601

 
 
Amortization of Nuclear Fuel
106

 
98

 
 
Provision for Deferred Income Taxes (Other than Leases) and ITC
170

 
70

 
 
Non-Cash Employee Benefit Plan Costs
81

 
24

 
 
Leveraged Lease Income, Adjusted for Rents Received and Deferred Taxes
(22
)
 
(44
)
 
 
Net Realized and Unrealized (Gains) Losses on Energy Contracts and Other Derivatives
(9
)
 
297

 
 
Change in Accrued Storm Costs
15

 
(3
)
 
 
Net Change in Other Regulatory Assets and Liabilities
(53
)
 
192

 
 
Cost of Removal
(58
)
 
(50
)
 
 
Net Realized (Gains) Losses and (Income) Expense from NDT Fund
(21
)
 
(59
)
 
 
Net Change in Certain Current Assets and Liabilities:
 
 
 
 
 
          Tax Receivable
188

 
9

 
 
          Accrued Taxes
71

 
54

 
 
          Margin Deposit
69

 
(234
)
 
 
          Other Current Assets and Liabilities
98

 
(116
)
 
 
Employee Benefit Plan Funding and Related Payments
(67
)
 
(50
)
 
 
Other
88

 
61

 
 
Net Cash Provided By (Used In) Operating Activities
2,234

 
1,448

 
 
CASH FLOWS FROM INVESTING ACTIVITIES


 
 
 
 
Additions to Property, Plant and Equipment
(1,743
)
 
(1,229
)
 
 
Proceeds from Sales of Capital Leases and Investments
5

 
11

 
 
Proceeds from Sales of Available-for-Sale Securities
885

 
584

 
 
Investments in Available-for-Sale Securities
(918
)
 
(599
)
 
 
Other
(2
)
 
(49
)
 
 
Net Cash Provided By (Used In) Investing Activities
(1,773
)
 
(1,282
)
 
 
CASH FLOWS FROM FINANCING ACTIVITIES
 
 
 
 
 
Net Change in Commercial Paper and Loans

 
(60
)
 
 
Issuance of Long-Term Debt
600

 
500

 
 
Redemption of Long-Term Debt
(300
)
 

 
 
Redemption of Securitization Debt
(125
)
 
(111
)
 
 
Cash Dividends Paid on Common Stock
(394
)
 
(374
)
 
 
Other
(47
)
 
(44
)
 
 
Net Cash Provided By (Used In) Financing Activities
(266
)
 
(89
)
 
 
Net Increase (Decrease) in Cash and Cash Equivalents
195

 
77

 
 
Cash and Cash Equivalents at Beginning of Period
402

 
493

 
 
Cash and Cash Equivalents at End of Period
$
597

 
$
570

 
 
Supplemental Disclosure of Cash Flow Information:
 
 
 
 
 
Income Taxes Paid (Received)
$
184

 
$
296

 
 
Interest Paid, Net of Amounts Capitalized
$
195

 
$
192

 
 
Accrued Property, Plant and Equipment Expenditures
$
324

 
$
240

 
 
 
 
 
 
 
See Notes to Condensed Consolidated Financial Statements.

5



PUBLIC SERVICE ELECTRIC AND GAS COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Millions
(Unaudited)

 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
Six Months Ended
 
 
 
June 30,
 
June 30,
 
 
 
2015
 
2014
 
2015
 
2014
 
 
OPERATING REVENUES
$
1,466

 
$
1,435

 
$
3,468

 
$
3,580

 
 
OPERATING EXPENSES
 
 
 
 
 
 
 
 
 
Energy Costs
544

 
565

 
1,436

 
1,610

 
 
Operation and Maintenance
368

 
362

 
780

 
824

 
 
Depreciation and Amortization
234

 
217

 
481

 
444

 
 
Total Operating Expenses
1,146

 
1,144

 
2,697

 
2,878

 
 
OPERATING INCOME
320

 
291

 
771

 
702

 
 
Other Income
19

 
14

 
37

 
28

 
 
Other Deductions
(1
)
 
(1
)
 
(2
)
 
(1
)
 
 
Interest Expense
(67
)
 
(67
)
 
(136
)
 
(135
)
 
 
INCOME BEFORE INCOME TAXES
271

 
237

 
670

 
594

 
 
Income Tax Expense
(104
)
 
(86
)
 
(261
)
 
(229
)
 
 
EARNINGS AVAILABLE TO PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED
$
167

 
$
151

 
$
409

 
$
365

 
 
 
 
 
 
 
 
 
 
 

See disclosures regarding Public Service Electric and Gas Company included in the Notes to Condensed Consolidated Financial Statements.


6


PUBLIC SERVICE ELECTRIC AND GAS COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Millions
(Unaudited)

 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
Six Months Ended
 
 
 
June 30,
 
June 30,
 
 
 
2015
 
2014
 
2015
 
2014
 
 
NET INCOME
$
167

 
$
151

 
$
409

 
$
365

 
 
Unrealized Gains (Losses) on Available-for-Sale Securities, net of tax (expense) benefit of $0 for the three and six months ended 2015 and 2014, respectively
(1
)
 

 
(1
)
 

 
 
COMPREHENSIVE INCOME
$
166

 
$
151

 
$
408

 
$
365

 
 
 
 
 
 
 
 
 
 
 

See disclosures regarding Public Service Electric and Gas Company included in the Notes to Condensed Consolidated Financial Statements.


7


PUBLIC SERVICE ELECTRIC AND GAS COMPANY
CONDENSED CONSOLIDATED BALANCE SHEETS
Millions
(Unaudited)

 
 
 
 
 
 
 
 
June 30,
2015
 
December 31,
2014
 
 
ASSETS
 
 
CURRENT ASSETS

 
 
 
 
Cash and Cash Equivalents
$
166

 
$
310

 
 
Accounts Receivable, net of allowances of $60 and $52 in 2015 and 2014, respectively
848

 
864

 
 
Accounts Receivable-Affiliated Companies
52

 
274

 
 
Unbilled Revenues
247

 
284

 
 
Materials and Supplies
143

 
133

 
 
Prepayments
204

 
42

 
 
Regulatory Assets
235

 
323

 
 
Regulatory Assets of VIEs
123

 
249

 
 
Derivative Contracts
5

 
18

 
 
Deferred Income Taxes

 
24

 
 
Other
7

 
7

 
 
Total Current Assets
2,030

 
2,528

 
 
PROPERTY, PLANT AND EQUIPMENT
22,274

 
21,103

 
 
Less: Accumulated Depreciation and Amortization
(5,336
)
 
(5,183
)
 
 
Net Property, Plant and Equipment
16,938

 
15,920

 
 
NONCURRENT ASSETS
 
 
 
 
 
Regulatory Assets
3,170

 
3,192

 
 
Long-Term Investments
346

 
348

 
 
Other Special Funds
54

 
53

 
 
Derivative Contracts

 
8

 
 
Restricted Cash of VIEs
25

 
24

 
 
Other
158

 
150

 
 
Total Noncurrent Assets
3,753

 
3,775

 
 
TOTAL ASSETS
$
22,721

 
$
22,223

 
 
 
 
 
 
 

See disclosures regarding Public Service Electric and Gas Company included in the Notes to Condensed Consolidated Financial Statements.


8


PUBLIC SERVICE ELECTRIC AND GAS COMPANY
CONDENSED CONSOLIDATED BALANCE SHEETS
Millions
(Unaudited)

 
 
 
 
 
 
 
 
June 30,
2015
 
December 31,
2014
 
 
LIABILITIES AND CAPITALIZATION
 
 
CURRENT LIABILITIES
 
 
 
 
 
Long-Term Debt Due Within One Year
$
171

 
$
300

 
 
Securitization Debt of VIEs Due Within One Year
134

 
259

 
 
Accounts Payable
612

 
574

 
 
Accounts Payable—Affiliated Companies
215

 
379

 
 
Accrued Interest
68

 
68

 
 
Clean Energy Program
200

 
142

 
 
Deferred Income Taxes
13

 
165

 
 
Obligation to Return Cash Collateral
128

 
121

 
 
Regulatory Liabilities
143

 
186

 
 
Other
358

 
381

 
 
Total Current Liabilities
2,042

 
2,575

 
 
NONCURRENT LIABILITIES
 
 
 
 
 
Deferred Income Taxes and ITC
4,810

 
4,575

 
 
Other Postretirement Benefit (OPEB) Costs
936

 
967

 
 
Accrued Pension Costs
144

 
173

 
 
Regulatory Liabilities
176

 
258

 
 
Regulatory Liabilities of VIEs
47

 
39

 
 
Clean Energy Program
27

 

 
 
Environmental Costs
370

 
364

 
 
Asset Retirement Obligations
299

 
290

 
 
Long-Term Accrued Taxes
161

 
116

 
 
Other
74

 
67

 
 
Total Noncurrent Liabilities
7,044

 
6,849

 
 
COMMITMENTS AND CONTINGENT LIABILITIES (See Note 8)


 


 
 
CAPITALIZATION
 
 
 
 
 
LONG-TERM DEBT

 
 
 
 
Total Long-Term Debt
6,440

 
6,012

 
 
STOCKHOLDER’S EQUITY
 
 
 
 
 
Common Stock; 150,000,000 shares authorized; issued and outstanding, 2015 and 2014—132,450,344 shares
892

 
892

 
 
Contributed Capital
695

 
695

 
 
Basis Adjustment
986

 
986

 
 
Retained Earnings
4,621

 
4,212

 
 
Accumulated Other Comprehensive Income
1

 
2

 
 
Total Stockholder’s Equity
7,195

 
6,787

 
 
Total Capitalization
13,635

 
12,799

 
 
TOTAL LIABILITIES AND CAPITALIZATION
$
22,721

 
$
22,223

 
 
 
 
 
 
 

See disclosures regarding Public Service Electric and Gas Company included in the Notes to Condensed Consolidated Financial Statements.


9


PUBLIC SERVICE ELECTRIC AND GAS COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Millions
(Unaudited)

 
 
 
 
 
 
 
 
Six Months Ended
 
 
 
June 30,
 
 
 
2015
 
2014
 
 
CASH FLOWS FROM OPERATING ACTIVITIES
 
 
 
 
 
  Net Income
$
409

 
$
365

 
 
Adjustments to Reconcile Net Income to Net Cash Flows from Operating Activities:
 
 
 
 
 
Depreciation and Amortization
481

 
444

 
 
Provision for Deferred Income Taxes and ITC
79

 
73

 
 
Non-Cash Employee Benefit Plan Costs
48

 
13

 
 
Cost of Removal
(58
)
 
(50
)
 
 
Change in Accrued Storm Costs
15

 
(3
)
 
 
Net Change in Other Regulatory Assets and Liabilities
(53
)
 
192

 
 
Net Change in Certain Current Assets and Liabilities:

 
 
 
 
Accounts Receivable and Unbilled Revenues
53

 
44

 
 
Materials and Supplies
(10
)
 
(11
)
 
 
Prepayments
(162
)
 
(162
)
 
 
Accounts Payable
48

 
16

 
 
Accounts Receivable/Payable—Affiliated Companies, net
154

 
(98
)
 
 
Other Current Assets and Liabilities
(27
)
 
(31
)
 
 
Employee Benefit Plan Funding and Related Payments
(55
)
 
(44
)
 
 
Other
(13
)
 
(11
)
 
 
Net Cash Provided By (Used In) Operating Activities
909

 
737

 
 
CASH FLOWS FROM INVESTING ACTIVITIES
 
 
 
 
 
Additions to Property, Plant and Equipment
(1,230
)
 
(996
)
 
 
Proceeds from Sales of Available-for-Sale Securities
12

 
8

 
 
Investments in Available-for-Sale Securities
(14
)
 
(6
)
 
 
Other
12

 
(1
)
 
 
Net Cash Provided By (Used In) Investing Activities
(1,220
)
 
(995
)
 
 
CASH FLOWS FROM FINANCING ACTIVITIES
 
 
 
 
 
Net Change in Short-Term Debt

 
(60
)
 
 
Issuance of Long-Term Debt
600

 
500

 
 
Redemption of Long-Term Debt
(300
)
 

 
 
Redemption of Securitization Debt
(125
)
 
(111
)
 
 
Contributed Capital

 
175

 
 
Other
(8
)
 
(7
)
 
 
Net Cash Provided By (Used In) Financing Activities
167

 
497

 
 
Net Increase (Decrease) In Cash and Cash Equivalents
(144
)
 
239

 
 
Cash and Cash Equivalents at Beginning of Period
310

 
18

 
 
Cash and Cash Equivalents at End of Period
$
166

 
$
257

 
 
Supplemental Disclosure of Cash Flow Information:
 
 
 
 
 
Income Taxes Paid (Received)
$
(74
)
 
$
102

 
 
Interest Paid, Net of Amounts Capitalized
$
131

 
$
127

 
 
Accrued Property, Plant and Equipment Expenditures
$
282