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Financial Risk Management Activities | 9 Months Ended
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Sep. 30, 2016
Derivative Instruments and Hedging Activities Disclosures [Line Items] |
Financial Risk Management Activities | Financial Risk Management Activities The operations of PSEG, Power and PSE&G are exposed to market risks from changes in commodity prices, interest rates and equity prices that could affect their results of operations and financial condition. Exposure to these risks is managed through normal operating and financing activities and, when appropriate, through hedging transactions. Hedging transactions use derivative instruments to create a relationship in which changes to the value of the assets, liabilities or anticipated transactions exposed to market risks are expected to be offset by changes in the value of these derivative instruments. Derivative accounting guidance requires that a derivative instrument be recognized as either an asset or a liability at fair value, with changes in fair value of the derivative recognized in earnings each period. Other accounting treatments are available through special election and designation provided that the derivative instrument meets specific, restrictive criteria, both at the time of designation and on an ongoing basis. These alternative permissible treatments include normal purchase normal sale (NPNS), cash flow hedge and fair value hedge accounting. PSEG, Power and PSE&G have applied the NPNS scope exception to certain derivative contracts for the forward sale of generation, power procurement agreements and fuel agreements. Transactions receiving NPNS treatment are accounted for upon settlement. For a derivative instrument that qualifies and is designated as a cash flow hedge, the changes in the fair value of such a derivative that are highly effective are recorded in Accumulated Other Comprehensive Income (Loss) until earnings are affected by the variability of cash flows of the hedged transaction. For a derivative instrument that qualifies and is designated as a fair value hedge, the gains or losses on the derivative as well as the offsetting losses or gains on the hedged item attributable to the hedged risk are recognized in earnings each period. Power and PSE&G enter into additional contracts that are derivatives, but are not designated as either cash flow hedges or fair value hedges. These transactions are economic hedges and are recorded at fair market value. Commodity Prices Within PSEG and its affiliate companies, Power has the most exposure to commodity price risk. Power is exposed to price risk primarily relating to changes in the market price of electricity, fossil fuels and other commodities. Fluctuations in market prices result from changes in supply and demand, fuel costs, market conditions, weather, state and federal regulatory policies, environmental policies, transmission availability and other factors. Power uses a variety of derivative and non-derivative instruments to manage the commodity price risk of its electric generation facilities, including physical and financial transactions in the wholesale energy markets to mitigate the effects of adverse movements in fuel and electricity prices. The fair value for the majority of these contracts is obtained from quoted market sources. Modeling techniques using assumptions reflective of current market rates, yield curves and forward prices are used to interpolate certain prices when no quoted market exists. PSEG had no commodity derivative transactions designated as cash flow or fair value hedges as of September 30, 2016 and December 31, 2015. Economic Hedges Power enters into derivative contracts that are not designated as either cash flow or fair value hedges. Power enters into financial options, futures, swaps, fuel purchases and forward purchases and sales of electricity. These transactions are economic hedges, intended to mitigate exposure to fluctuations in commodity prices and optimize the value of Power’s expected generation. Changes in the fair market value of these contracts are recorded in earnings. PSE&G is a party to a long-term natural gas sales derivative contract to optimize its pipeline capacity utilization. Changes in the fair market value of the contract are recorded in Regulatory Assets and Regulatory Liabilities. Interest Rates PSEG, Power and PSE&G are subject to the risk of fluctuating interest rates in the normal course of business. Exposure to this risk is managed by targeting a balanced debt maturity profile which limits refinancing in any given period or interest rate environment. In addition, they have used a mix of fixed and floating rate debt and interest rate swaps. Fair Value Hedges PSEG enters into fair value hedges to convert fixed-rate debt into variable-rate debt. The changes in fair value of the interest rate swaps are fully offset by the changes in the fair value of the underlying forecasted interest payments of the debt. Interest rate swaps totaling $550 million that converted the retired Power’s Senior Notes due September 2016 into variable-rate debt matured in the third quarter. There were no outstanding interest rate swaps as of September 30, 2016. As of December 31, 2015, the fair value of all the underlying hedges was $6 million. The effect of these hedges reduced interest expense by $2 million and $5 million for the three months ended September 30, 2016 and 2015, respectively, and $6 million and $15 million for the nine months ended September 30, 2016 and 2015, respectively. Cash Flow Hedges PSEG uses interest rate swaps and other derivatives, which are designated and effective as cash flow hedges, to manage its exposure to the variability of cash flows, primarily related to variable-rate debt instruments. As of September 30, 2016, PSEG had interest rate hedges outstanding totaling $500 million. These hedges convert PSEG’s $500 million variable rate term loan due November 2017 into a fixed rate loan. The fair value of these hedges and the related ineffectiveness were immaterial as of September 30, 2016. PSEG interest rate hedges totaling $400 million were terminated during the second quarter and a gain of $2 million was recorded in Accumulated Other Comprehensive Income (Loss) (after tax) and will amortize to interest expense over the remaining life of Power’s $700 million of 3% Senior Notes due June 2021. For additional information see Note 10. Debt and Credit Facilities. There were no outstanding interest rate cash flow hedges as of December 31, 2015. The Accumulated Other Comprehensive Income (Loss) (after tax) related to existing and terminated interest rate derivatives designated as cash flow hedges was $2 million as of September 30, 2016 and was immaterial as of December 31, 2015. The after-tax unrealized gains on these hedges expected to be reclassified to earnings during the next 12 months are immaterial. The expiration date of the longest-dated interest rate hedge is in May 2021. Fair Values of Derivative Instruments The following are the fair values of derivative instruments on the Condensed Consolidated Balance Sheets. The following tables also include disclosures for offsetting derivative assets and liabilities which are subject to a master netting or similar agreement. In general, the terms of the agreements provide that in the event of an early termination the counterparties have the right to offset amounts owed or owing under that and any other agreement with the same counterparty. Accordingly, and in accordance with PSEG’s accounting policy, these positions have been offset on the Condensed Consolidated Balance Sheets of Power, PSE&G and PSEG. The following tabular disclosure does not include the offsetting of trade receivables and payables.
|  |  | As of September 30, 2016 (A) |
|  |  | Power |  | PSE&G |  | PSEG |  | Consolidated |
|  |  | Not Designated |  |  |  |  |  | Not Designated |  | Designated as Hedges |  |  |
| Balance Sheet Location |  | Energy- Related Contracts |  | Netting (B) |  | Total Power |  | Energy- Related Contracts |  | Interest Rate Swaps |  | Total Derivatives |
|  |  | Millions |
| Derivative Contracts |  |  |  |  |  |  |  |  |  |  |  |  |
| Current Assets |  | $ | 432 |  |  | $ | (283 | ) |  | $ | 149 |  |  | $ | — |  |  | $ | — |  |  | $ | 149 |  |
| Noncurrent Assets |  | 305 |  |  | (219 | ) |  | 86 |  |  | — |  |  | — |  |  | 86 |  |
| Total Mark-to-Market Derivative Assets |  | $ | 737 |  |  | $ | (502 | ) |  | $ | 235 |  |  | $ | — |  |  | $ | — |  |  | $ | 235 |  |
| Derivative Contracts |  |  |  |  |  |  |  |  |  |  |  |  |
| Current Liabilities |  | $ | (314 | ) |  | $ | 278 |  |  | $ | (36 | ) |  | $ | (4 | ) |  | $ | — |  |  | $ | (40 | ) |
| Noncurrent Liabilities |  | (219 | ) |  | 206 |  |  | (13 | ) |  | — |  |  | — |  |  | (13 | ) |
| Total Mark-to-Market Derivative (Liabilities) |  | $ | (533 | ) |  | $ | 484 |  |  | $ | (49 | ) |  | $ | (4 | ) |  | $ | — |  |  | $ | (53 | ) |
| Total Net Mark-to-Market Derivative Assets (Liabilities) |  | $ | 204 |  |  | $ | (18 | ) |  | $ | 186 |  |  | $ | (4 | ) |  | $ | — |  |  | $ | 182 |  |
|  |  | As of December 31, 2015 (A) |
|  |  | Power |  | PSE&G |  | PSEG |  | Consolidated |
|  |  | Not Designated |  |  |  |  |  | Not Designated |  | Designated as Hedges |  |  |
| Balance Sheet Location |  | Energy- Related Contracts |  | Netting (B) |  | Total Power |  | Energy- Related Contracts |  | Interest Rate Swaps |  | Total Derivatives |
|  |  | Millions |
| Derivative Contracts |  |  |  |  |  |  |  |  |  |  |  |  |
| Current Assets |  | $ | 700 |  |  | $ | (477 | ) |  | $ | 223 |  |  | $ | 13 |  |  | $ | 6 |  |  | $ | 242 |  |
| Noncurrent Assets |  | 208 |  |  | (131 | ) |  | 77 |  |  | — |  |  | — |  |  | 77 |  |
| Total Mark-to-Market Derivative Assets |  | $ | 908 |  |  | $ | (608 | ) |  | $ | 300 |  |  | $ | 13 |  |  | $ | 6 |  |  | $ | 319 |  |
| Derivative Contracts |  |  |  |  |  |  |  |  |  |  |  |  |
| Current Liabilities |  | $ | (513 | ) |  | $ | 437 |  |  | $ | (76 | ) |  | $ | — |  |  | $ | — |  |  | $ | (76 | ) |
| Noncurrent Liabilities |  | (132 | ) |  | 116 |  |  | (16 | ) |  | (11 | ) |  | — |  |  | (27 | ) |
| Total Mark-to-Market Derivative (Liabilities) |  | $ | (645 | ) |  | $ | 553 |  |  | $ | (92 | ) |  | $ | (11 | ) |  | $ | — |  |  | $ | (103 | ) |
| Total Net Mark-to-Market Derivative Assets (Liabilities) |  | $ | 263 |  |  | $ | (55 | ) |  | $ | 208 |  |  | $ | 2 |  |  | $ | 6 |  |  | $ | 216 |  |
(A) | Substantially all of Power’s and PSEG’s derivative instruments are contracts subject to master netting agreements. Contracts not subject to master netting or similar agreements are immaterial and did not have any collateral posted or received as of September 30, 2016 and December 31, 2015. PSE&G does not have any derivative contracts subject to master netting or similar agreements.
(B) | Represents the netting of fair value balances with the same counterparty (where the right of offset exists) and the application of collateral. All cash collateral received or posted that has been allocated to derivative positions, where the right of offset exists, has been offset on the Condensed Consolidated Balance Sheets. As of September 30, 2016 and December 31, 2015, net cash collateral (received) paid of $(18) million and $(55) million, respectively, were netted against the corresponding net derivative contract positions. Of the $(18) million as of September 30, 2016, $(13) million and $(14) million of cash collateral were netted against current assets and noncurrent assets, respectively, and $9 million was netted against current liabilities. Of the $(55) million as of December 31, 2015, $(53) million and $(16) million were netted against current assets and noncurrent assets, respectively, and $12 million and $2 million were netted against current liabilities and noncurrent liabilities, respectively.
Certain of Power’s derivative instruments contain provisions that require Power to post collateral. This collateral may be posted in the form of cash or credit support with thresholds contingent upon Power’s credit rating from each of the major credit rating agencies. The collateral and credit support requirements vary by contract and by counterparty. These credit risk-related contingent features stipulate that if Power were to be downgraded to a below investment grade rating, it would be required to provide additional collateral. A below investment grade credit rating for Power would represent a three level downgrade from its current S&P and Moody’s ratings. This incremental collateral requirement can offset collateral requirements related to other derivative instruments that are assets with the same counterparty, where the contractual right of offset exists under applicable master agreements. Power also enters into commodity transactions on the New York Mercantile Exchange (NYMEX) and Intercontinental Exchange (ICE). The NYMEX and ICE clearing houses act as counterparties to each trade. Transactions on the NYMEX and ICE must adhere to comprehensive collateral and margin requirements. The aggregate fair value of all derivative instruments with credit risk-related contingent features in a liability position that are not fully collateralized (excluding transactions on the NYMEX and ICE that are fully collateralized, and contracts designated as NPNS) was $42 million and $78 million as of September 30, 2016 and December 31, 2015, respectively. As of September 30, 2016 and December 31, 2015, Power had the contractual right of offset of $11 million and $12 million, respectively, related to derivative instruments that are assets with the same counterparty under agreements and net of margin posted. If Power had been downgraded to a below investment grade rating, it would have had additional collateral obligations of $31 million and $66 million as of September 30, 2016 and December 31, 2015, respectively, related to its derivatives, net of the contractual right of offset under master agreements and the application of collateral. The following shows the effect on the Condensed Consolidated Statements of Operations and on Accumulated Other Comprehensive Income (AOCI) of derivative instruments designated as cash flow hedges for the three months ended September 30, 2016 and 2015.
| Derivatives in Cash Flow Hedging Relationships |  | Amount of Pre-Tax Gain (Loss) Recognized in AOCI on Derivatives (Effective Portion) |  | Location of Pre-Tax Gain (Loss) Reclassified from AOCI into Income |  | Amount of Pre-Tax Gain (Loss) Reclassified from AOCI into Income (Effective Portion) |  | Location of Pre-Tax Gain (Loss) Recognized in Income on Derivatives (Ineffective Portion) |  | Amount of Pre-Tax Gain (Loss) Recognized in Income on Derivatives (Ineffective Portion) |
|  | Three Months Ended |  |  |  | Three Months Ended |  |  |  | Three Months Ended |
|  | September 30, |  |  |  | September 30, |  |  |  | September 30, |
|  | 2016 |  | 2015 |  |  |  | 2016 |  | 2015 |  |  |  | 2016 |  | 2015 |
|  |  | Millions |
| PSEG |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Energy-Related Contracts |  | $ | — |  |  | $ | 1 |  |  | Operating Revenues |  | $ | — |  |  | $ | — |  |  | Operating Revenues |  | $ | — |  |  | $ | — |  |
| Interest Rate Swaps |  | 1 |  |  | — |  |  | Interest Expense |  | — |  |  | — |  |  | Interest Expense |  | — |  |  | — |  |
| Total PSEG |  | $ | 1 |  |  | $ | 1 |  |  |  |  | $ | — |  |  | $ | — |  |  |  |  | $ | — |  |  | $ | — |  |
| Power |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Energy-Related Contracts |  | $ | — |  |  | $ | 1 |  |  | Operating Revenues |  | $ | — |  |  | $ | — |  |  | Operating Revenues |  | $ | — |  |  | $ | — |  |
| Total Power |  | $ | — |  |  | $ | 1 |  |  |  |  | $ | — |  |  | $ | — |  |  |  |  | $ | — |  |  | $ | — |  |
The following shows the effect on the Condensed Consolidated Statements of Operations and on Accumulated Other Comprehensive Income (AOCI) of derivative instruments designated as cash flow hedges for the nine months ended September 30, 2016 and 2015.
| Derivatives in Cash Flow Hedging Relationships |  | Amount of Pre-Tax Gain (Loss) Recognized in AOCI on Derivatives (Effective Portion) |  | Location of Pre-Tax Gain (Loss) Reclassified from AOCI into Income |  | Amount of Pre-Tax Gain (Loss) Reclassified from AOCI into Income (Effective Portion) |  | Location of Pre-Tax Gain (Loss) Recognized in Income on Derivatives (Ineffective Portion) |  | Amount of Pre-Tax Gain (Loss) Recognized in Income on Derivatives (Ineffective Portion) |
|  | Nine Months Ended |  |  |  | Nine Months Ended |  |  |  | Nine Months Ended |
|  | September 30, |  |  |  | September 30, |  |  |  | September 30, |
|  | 2016 |  | 2015 |  |  |  | 2016 |  | 2015 |  |  |  | 2016 |  | 2015 |
|  |  | Millions |
| PSEG |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Energy-Related Contracts |  | $ | — |  |  | $ | 2 |  |  | Operating Revenues |  | $ | — |  |  | $ | 17 |  |  | Operating Revenues |  | $ | — |  |  | $ | — |  |
| Interest Rate Swaps |  | 3 |  |  | — |  |  | Interest Expense |  | — |  |  | — |  |  | Interest Expense |  | — |  |  | — |  |
| Total PSEG |  | $ | 3 |  |  | $ | 2 |  |  |  |  | $ | — |  |  | $ | 17 |  |  |  |  | $ | — |  |  | $ | — |  |
| Power |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Energy-Related Contracts |  | $ | — |  |  | $ | 2 |  |  | Operating Revenues |  | $ | — |  |  | $ | 17 |  |  | Operating Revenues |  | $ | — |  |  | $ | — |  |
| Total Power |  | $ | — |  |  | $ | 2 |  |  |  |  | $ | — |  |  | $ | 17 |  |  |  |  | $ | — |  |  | $ | — |  |
The following reconciles the Accumulated Other Comprehensive Income for derivative activity included in the Accumulated Other Comprehensive Loss of PSEG on a pre-tax and after-tax basis.
| Accumulated Other Comprehensive Income |  | Pre-Tax |  | After-Tax |
|  |  | Millions |
| Balance as of December 31, 2015 |  | $ | — |  |  | $ | — |  |
| Gain Recognized in AOCI |  | 2 |  | — |  | 1 |  |
| Less: Gain Reclassified into Income |  | — |  |  | — |  |
| Balance as of June 30, 2016 |  | $ | 2 |  |  | $ | 1 |  |
| Gain Recognized in AOCI |  | 1 |  |  | 1 |  |
| Less: Gain Reclassified into Income |  | — |  |  | — |  |
| Balance as of September 30, 2016 |  | $ | 3 |  |  | $ | 2 |  |
The following shows the effect on the Condensed Consolidated Statements of Operations of derivative instruments not designated as hedging instruments or as NPNS, such as its BGS contracts and certain other energy supply contracts, for the three months and nine months ended September 30, 2016 and 2015. Power’s derivative contracts reflected in these tables include contracts to hedge the purchase and sale of electricity and natural gas, and the purchase of fuel.
| Derivatives Not Designated as Hedges |  | Location of Pre-Tax Gain (Loss) Recognized in Income on Derivatives |  | Pre-Tax Gain (Loss) Recognized in Income on Derivatives |
|  |  |  |  | Three Months Ended |  | Nine Months Ended |
|  |  |  |  | September 30, |  | September 30, |
|  |  |  |  | 2016 |  | 2015 |  | 2016 |  | 2015 |
|  |  |  |  | Millions |
| PSEG and Power |  |  |  |  |  |  |  |  |  |  |
| Energy-Related Contracts |  | Operating Revenues |  | $ | 125 |  |  | $ | 154 |  |  | $ | 255 |  |  | $ | 202 |  |
| Energy-Related Contracts |  | Energy Costs |  | (11 | ) |  | (4 | ) |  | (3 | ) |  | (4 | ) |
| Total PSEG and Power |  |  |  | $ | 114 |  |  | $ | 150 |  |  | $ | 252 |  |  | $ | 198 |  |
The following reflects the gross volume, on an absolute value basis, of derivatives as of September 30, 2016 and December 31, 2015.
| Type |  | Notional |  | Total |  | PSEG |  | Power |  | PSE&G |
|  |  |  |  | Millions |
| As of September 30, 2016 |  |  |  |  |  |  |  |  |  |  |
| Natural Gas |  | Dekatherm (Dth) |  | 315 |  |  | — |  |  | 300 |  |  | 15 |  |
| Electricity |  | MWh |  | 349 |  |  | — |  |  | 349 |  |  | — |  |
| Financial Transmission Rights (FTRs) |  | MWh |  | 14 |  |  | — |  |  | 14 |  |  | — |  |
| Interest Rate Swaps |  | U.S. Dollars |  | 500 |  |  | 500 |  |  | — |  |  | — |  |
| As of December 31, 2015 |  |  |  |  |  |  |  |  |  |  |
| Natural Gas |  | Dth |  | 201 |  |  | — |  |  | 168 |  |  | 33 |  |
| Electricity |  | MWh |  | 299 |  |  | — |  |  | 299 |  |  | — |  |
| FTRs |  | MWh |  | 23 |  |  | — |  |  | 23 |  |  | — |  |
| Interest Rate Swaps |  | U.S. Dollars |  | 550 |  |  | 550 |  |  | — |  |  | — |  |
Credit Risk Credit risk relates to the risk of loss that we would incur as a result of non-performance by counterparties pursuant to the terms of their contractual obligations. We have established credit policies that we believe significantly minimize credit risk. These policies include an evaluation of potential counterparties’ financial condition (including credit rating), collateral requirements under certain circumstances and the use of standardized agreements, which allow for the netting of positive and negative exposures associated with a single counterparty. In the event of non-performance or non-payment by a major counterparty, there may be a material adverse impact on Power’s and PSEG’s financial condition, results of operations or net cash flows. As of September 30, 2016, 92% of the net credit exposure for Power’s operations was with investment grade counterparties. Credit exposure is defined as any positive results of netting accounts receivable/accounts payable and the forward value of open positions (which includes all financial instruments including derivatives and non-derivatives and normal purchases/normal sales). The following table provides information on Power’s credit risk from others, net of collateral, as of September 30, 2016. It further delineates that exposure by the credit rating of the counterparties and provides guidance on the concentration of credit risk to individual counterparties and an indication of the quality of Power’s credit risk by credit rating of the counterparties.
| Rating |  | Current Exposure |  | Securities Held as Collateral |  | Net Exposure |  | Number of Counterparties >10% |  | Net Exposure of Counterparties >10% |  |
|  |  | Millions |  |  |  | Millions |  |
| Investment Grade—External Rating |  | $ | 384 |  |  | $ | 135 |  |  | $ | 249 |  |  | 2 |  |  | $ | 147 |  | (A) |
| Non-Investment Grade—External Rating |  | 24 |  |  | — |  |  | 24 |  |  | — |  |  | — |  |  |
| Investment Grade—No External Rating |  | 9 |  |  | — |  |  | 9 |  |  | — |  |  | — |  |  |
| Non-Investment Grade—No External Rating |  | 1 |  |  | 1 |  |  | — |  |  | — |  |  | — |  |  |
| Total |  | $ | 418 |  |  | $ | 136 |  |  | $ | 282 |  |  | 2 |  |  | $ | 147 |  |  |
(A) | Represents net exposure of $114 million with PSE&G. The remaining net exposure of $33 million is with a non-affiliated power purchaser which is an investment grade counterparty.
As of September 30, 2016, collateral held from counterparties where Power had credit exposure included $3 million in cash collateral and $133 million in letters of credit. As of September 30, 2016, Power had 135 active counterparties. PSE&G’s supplier master agreements are approved by the BPU and govern the terms of its electric supply procurement contracts. These agreements define a supplier’s performance assurance requirements and allow a supplier to meet its credit requirements with a certain amount of unsecured credit. The amount of unsecured credit is determined based on the supplier’s credit ratings from the major credit rating agencies and the supplier’s tangible net worth. The credit position is based on the initial market price, which is the forward price of energy on the day the procurement transaction is executed, compared to the forward price curve for energy on the valuation day. To the extent that the forward price curve for energy exceeds the initial market price, the supplier is required to post a parental guaranty or other security instrument such as a letter of credit or cash, as collateral to the extent the credit exposure is greater than the supplier’s unsecured credit limit. As of September 30, 2016, primarily all of the posted collateral was in the form of parental guarantees. The unsecured credit used by the suppliers represents PSE&G’s net credit exposure. PSE&G’s suppliers’ credit exposure is calculated each business day. As of September 30, 2016, PSE&G had no net credit exposure with suppliers, including Power. PSE&G is permitted to recover its costs of procuring energy through the BPU-approved BGS tariffs. PSE&G’s counterparty credit risk is mitigated by its ability to recover realized energy costs through customer rates.
PSE And G [Member] |
Derivative Instruments and Hedging Activities Disclosures [Line Items] |
Financial Risk Management Activities | Financial Risk Management Activities The operations of PSEG, Power and PSE&G are exposed to market risks from changes in commodity prices, interest rates and equity prices that could affect their results of operations and financial condition. Exposure to these risks is managed through normal operating and financing activities and, when appropriate, through hedging transactions. Hedging transactions use derivative instruments to create a relationship in which changes to the value of the assets, liabilities or anticipated transactions exposed to market risks are expected to be offset by changes in the value of these derivative instruments. Derivative accounting guidance requires that a derivative instrument be recognized as either an asset or a liability at fair value, with changes in fair value of the derivative recognized in earnings each period. Other accounting treatments are available through special election and designation provided that the derivative instrument meets specific, restrictive criteria, both at the time of designation and on an ongoing basis. These alternative permissible treatments include normal purchase normal sale (NPNS), cash flow hedge and fair value hedge accounting. PSEG, Power and PSE&G have applied the NPNS scope exception to certain derivative contracts for the forward sale of generation, power procurement agreements and fuel agreements. Transactions receiving NPNS treatment are accounted for upon settlement. For a derivative instrument that qualifies and is designated as a cash flow hedge, the changes in the fair value of such a derivative that are highly effective are recorded in Accumulated Other Comprehensive Income (Loss) until earnings are affected by the variability of cash flows of the hedged transaction. For a derivative instrument that qualifies and is designated as a fair value hedge, the gains or losses on the derivative as well as the offsetting losses or gains on the hedged item attributable to the hedged risk are recognized in earnings each period. Power and PSE&G enter into additional contracts that are derivatives, but are not designated as either cash flow hedges or fair value hedges. These transactions are economic hedges and are recorded at fair market value. Commodity Prices Within PSEG and its affiliate companies, Power has the most exposure to commodity price risk. Power is exposed to price risk primarily relating to changes in the market price of electricity, fossil fuels and other commodities. Fluctuations in market prices result from changes in supply and demand, fuel costs, market conditions, weather, state and federal regulatory policies, environmental policies, transmission availability and other factors. Power uses a variety of derivative and non-derivative instruments to manage the commodity price risk of its electric generation facilities, including physical and financial transactions in the wholesale energy markets to mitigate the effects of adverse movements in fuel and electricity prices. The fair value for the majority of these contracts is obtained from quoted market sources. Modeling techniques using assumptions reflective of current market rates, yield curves and forward prices are used to interpolate certain prices when no quoted market exists. PSEG had no commodity derivative transactions designated as cash flow or fair value hedges as of September 30, 2016 and December 31, 2015. Economic Hedges Power enters into derivative contracts that are not designated as either cash flow or fair value hedges. Power enters into financial options, futures, swaps, fuel purchases and forward purchases and sales of electricity. These transactions are economic hedges, intended to mitigate exposure to fluctuations in commodity prices and optimize the value of Power’s expected generation. Changes in the fair market value of these contracts are recorded in earnings. PSE&G is a party to a long-term natural gas sales derivative contract to optimize its pipeline capacity utilization. Changes in the fair market value of the contract are recorded in Regulatory Assets and Regulatory Liabilities. Interest Rates PSEG, Power and PSE&G are subject to the risk of fluctuating interest rates in the normal course of business. Exposure to this risk is managed by targeting a balanced debt maturity profile which limits refinancing in any given period or interest rate environment. In addition, they have used a mix of fixed and floating rate debt and interest rate swaps. Fair Value Hedges PSEG enters into fair value hedges to convert fixed-rate debt into variable-rate debt. The changes in fair value of the interest rate swaps are fully offset by the changes in the fair value of the underlying forecasted interest payments of the debt. Interest rate swaps totaling $550 million that converted the retired Power’s Senior Notes due September 2016 into variable-rate debt matured in the third quarter. There were no outstanding interest rate swaps as of September 30, 2016. As of December 31, 2015, the fair value of all the underlying hedges was $6 million. The effect of these hedges reduced interest expense by $2 million and $5 million for the three months ended September 30, 2016 and 2015, respectively, and $6 million and $15 million for the nine months ended September 30, 2016 and 2015, respectively. Cash Flow Hedges PSEG uses interest rate swaps and other derivatives, which are designated and effective as cash flow hedges, to manage its exposure to the variability of cash flows, primarily related to variable-rate debt instruments. As of September 30, 2016, PSEG had interest rate hedges outstanding totaling $500 million. These hedges convert PSEG’s $500 million variable rate term loan due November 2017 into a fixed rate loan. The fair value of these hedges and the related ineffectiveness were immaterial as of September 30, 2016. PSEG interest rate hedges totaling $400 million were terminated during the second quarter and a gain of $2 million was recorded in Accumulated Other Comprehensive Income (Loss) (after tax) and will amortize to interest expense over the remaining life of Power’s $700 million of 3% Senior Notes due June 2021. For additional information see Note 10. Debt and Credit Facilities. There were no outstanding interest rate cash flow hedges as of December 31, 2015. The Accumulated Other Comprehensive Income (Loss) (after tax) related to existing and terminated interest rate derivatives designated as cash flow hedges was $2 million as of September 30, 2016 and was immaterial as of December 31, 2015. The after-tax unrealized gains on these hedges expected to be reclassified to earnings during the next 12 months are immaterial. The expiration date of the longest-dated interest rate hedge is in May 2021. Fair Values of Derivative Instruments The following are the fair values of derivative instruments on the Condensed Consolidated Balance Sheets. The following tables also include disclosures for offsetting derivative assets and liabilities which are subject to a master netting or similar agreement. In general, the terms of the agreements provide that in the event of an early termination the counterparties have the right to offset amounts owed or owing under that and any other agreement with the same counterparty. Accordingly, and in accordance with PSEG’s accounting policy, these positions have been offset on the Condensed Consolidated Balance Sheets of Power, PSE&G and PSEG. The following tabular disclosure does not include the offsetting of trade receivables and payables.
|  |  | As of September 30, 2016 (A) |
|  |  | Power |  | PSE&G |  | PSEG |  | Consolidated |
|  |  | Not Designated |  |  |  |  |  | Not Designated |  | Designated as Hedges |  |  |
| Balance Sheet Location |  | Energy- Related Contracts |  | Netting (B) |  | Total Power |  | Energy- Related Contracts |  | Interest Rate Swaps |  | Total Derivatives |
|  |  | Millions |
| Derivative Contracts |  |  |  |  |  |  |  |  |  |  |  |  |
| Current Assets |  | $ | 432 |  |  | $ | (283 | ) |  | $ | 149 |  |  | $ | — |  |  | $ | — |  |  | $ | 149 |  |
| Noncurrent Assets |  | 305 |  |  | (219 | ) |  | 86 |  |  | — |  |  | — |  |  | 86 |  |
| Total Mark-to-Market Derivative Assets |  | $ | 737 |  |  | $ | (502 | ) |  | $ | 235 |  |  | $ | — |  |  | $ | — |  |  | $ | 235 |  |
| Derivative Contracts |  |  |  |  |  |  |  |  |  |  |  |  |
| Current Liabilities |  | $ | (314 | ) |  | $ | 278 |  |  | $ | (36 | ) |  | $ | (4 | ) |  | $ | — |  |  | $ | (40 | ) |
| Noncurrent Liabilities |  | (219 | ) |  | 206 |  |  | (13 | ) |  | — |  |  | — |  |  | (13 | ) |
| Total Mark-to-Market Derivative (Liabilities) |  | $ | (533 | ) |  | $ | 484 |  |  | $ | (49 | ) |  | $ | (4 | ) |  | $ | — |  |  | $ | (53 | ) |
| Total Net Mark-to-Market Derivative Assets (Liabilities) |  | $ | 204 |  |  | $ | (18 | ) |  | $ | 186 |  |  | $ | (4 | ) |  | $ | — |  |  | $ | 182 |  |
|  |  | As of December 31, 2015 (A) |
|  |  | Power |  | PSE&G |  | PSEG |  | Consolidated |
|  |  | Not Designated |  |  |  |  |  | Not Designated |  | Designated as Hedges |  |  |
| Balance Sheet Location |  | Energy- Related Contracts |  | Netting (B) |  | Total Power |  | Energy- Related Contracts |  | Interest Rate Swaps |  | Total Derivatives |
|  |  | Millions |
| Derivative Contracts |  |  |  |  |  |  |  |  |  |  |  |  |
| Current Assets |  | $ | 700 |  |  | $ | (477 | ) |  | $ | 223 |  |  | $ | 13 |  |  | $ | 6 |  |  | $ | 242 |  |
| Noncurrent Assets |  | 208 |  |  | (131 | ) |  | 77 |  |  | — |  |  | — |  |  | 77 |  |
| Total Mark-to-Market Derivative Assets |  | $ | 908 |  |  | $ | (608 | ) |  | $ | 300 |  |  | $ | 13 |  |  | $ | 6 |  |  | $ | 319 |  |
| Derivative Contracts |  |  |  |  |  |  |  |  |  |  |  |  |
| Current Liabilities |  | $ | (513 | ) |  | $ | 437 |  |  | $ | (76 | ) |  | $ | — |  |  | $ | — |  |  | $ | (76 | ) |
| Noncurrent Liabilities |  | (132 | ) |  | 116 |  |  | (16 | ) |  | (11 | ) |  | — |  |  | (27 | ) |
| Total Mark-to-Market Derivative (Liabilities) |  | $ | (645 | ) |  | $ | 553 |  |  | $ | (92 | ) |  | $ | (11 | ) |  | $ | — |  |  | $ | (103 | ) |
| Total Net Mark-to-Market Derivative Assets (Liabilities) |  | $ | 263 |  |  | $ | (55 | ) |  | $ | 208 |  |  | $ | 2 |  |  | $ | 6 |  |  | $ | 216 |  |
(A) | Substantially all of Power’s and PSEG’s derivative instruments are contracts subject to master netting agreements. Contracts not subject to master netting or similar agreements are immaterial and did not have any collateral posted or received as of September 30, 2016 and December 31, 2015. PSE&G does not have any derivative contracts subject to master netting or similar agreements.
(B) | Represents the netting of fair value balances with the same counterparty (where the right of offset exists) and the application of collateral. All cash collateral received or posted that has been allocated to derivative positions, where the right of offset exists, has been offset on the Condensed Consolidated Balance Sheets. As of September 30, 2016 and December 31, 2015, net cash collateral (received) paid of $(18) million and $(55) million, respectively, were netted against the corresponding net derivative contract positions. Of the $(18) million as of September 30, 2016, $(13) million and $(14) million of cash collateral were netted against current assets and noncurrent assets, respectively, and $9 million was netted against current liabilities. Of the $(55) million as of December 31, 2015, $(53) million and $(16) million were netted against current assets and noncurrent assets, respectively, and $12 million and $2 million were netted against current liabilities and noncurrent liabilities, respectively.
Certain of Power’s derivative instruments contain provisions that require Power to post collateral. This collateral may be posted in the form of cash or credit support with thresholds contingent upon Power’s credit rating from each of the major credit rating agencies. The collateral and credit support requirements vary by contract and by counterparty. These credit risk-related contingent features stipulate that if Power were to be downgraded to a below investment grade rating, it would be required to provide additional collateral. A below investment grade credit rating for Power would represent a three level downgrade from its current S&P and Moody’s ratings. This incremental collateral requirement can offset collateral requirements related to other derivative instruments that are assets with the same counterparty, where the contractual right of offset exists under applicable master agreements. Power also enters into commodity transactions on the New York Mercantile Exchange (NYMEX) and Intercontinental Exchange (ICE). The NYMEX and ICE clearing houses act as counterparties to each trade. Transactions on the NYMEX and ICE must adhere to comprehensive collateral and margin requirements. The aggregate fair value of all derivative instruments with credit risk-related contingent features in a liability position that are not fully collateralized (excluding transactions on the NYMEX and ICE that are fully collateralized, and contracts designated as NPNS) was $42 million and $78 million as of September 30, 2016 and December 31, 2015, respectively. As of September 30, 2016 and December 31, 2015, Power had the contractual right of offset of $11 million and $12 million, respectively, related to derivative instruments that are assets with the same counterparty under agreements and net of margin posted. If Power had been downgraded to a below investment grade rating, it would have had additional collateral obligations of $31 million and $66 million as of September 30, 2016 and December 31, 2015, respectively, related to its derivatives, net of the contractual right of offset under master agreements and the application of collateral. The following shows the effect on the Condensed Consolidated Statements of Operations and on Accumulated Other Comprehensive Income (AOCI) of derivative instruments designated as cash flow hedges for the three months ended September 30, 2016 and 2015.
| Derivatives in Cash Flow Hedging Relationships |  | Amount of Pre-Tax Gain (Loss) Recognized in AOCI on Derivatives (Effective Portion) |  | Location of Pre-Tax Gain (Loss) Reclassified from AOCI into Income |  | Amount of Pre-Tax Gain (Loss) Reclassified from AOCI into Income (Effective Portion) |  | Location of Pre-Tax Gain (Loss) Recognized in Income on Derivatives (Ineffective Portion) |  | Amount of Pre-Tax Gain (Loss) Recognized in Income on Derivatives (Ineffective Portion) |
|  | Three Months Ended |  |  |  | Three Months Ended |  |  |  | Three Months Ended |
|  | September 30, |  |  |  | September 30, |  |  |  | September 30, |
|  | 2016 |  | 2015 |  |  |  | 2016 |  | 2015 |  |  |  | 2016 |  | 2015 |
|  |  | Millions |
| PSEG |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Energy-Related Contracts |  | $ | — |  |  | $ | 1 |  |  | Operating Revenues |  | $ | — |  |  | $ | — |  |  | Operating Revenues |  | $ | — |  |  | $ | — |  |
| Interest Rate Swaps |  | 1 |  |  | — |  |  | Interest Expense |  | — |  |  | — |  |  | Interest Expense |  | — |  |  | — |  |
| Total PSEG |  | $ | 1 |  |  | $ | 1 |  |  |  |  | $ | — |  |  | $ | — |  |  |  |  | $ | — |  |  | $ | — |  |
| Power |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Energy-Related Contracts |  | $ | — |  |  | $ | 1 |  |  | Operating Revenues |  | $ | — |  |  | $ | — |  |  | Operating Revenues |  | $ | — |  |  | $ | — |  |
| Total Power |  | $ | — |  |  | $ | 1 |  |  |  |  | $ | — |  |  | $ | — |  |  |  |  | $ | — |  |  | $ | — |  |
The following shows the effect on the Condensed Consolidated Statements of Operations and on Accumulated Other Comprehensive Income (AOCI) of derivative instruments designated as cash flow hedges for the nine months ended September 30, 2016 and 2015.
| Derivatives in Cash Flow Hedging Relationships |  | Amount of Pre-Tax Gain (Loss) Recognized in AOCI on Derivatives (Effective Portion) |  | Location of Pre-Tax Gain (Loss) Reclassified from AOCI into Income |  | Amount of Pre-Tax Gain (Loss) Reclassified from AOCI into Income (Effective Portion) |  | Location of Pre-Tax Gain (Loss) Recognized in Income on Derivatives (Ineffective Portion) |  | Amount of Pre-Tax Gain (Loss) Recognized in Income on Derivatives (Ineffective Portion) |
|  | Nine Months Ended |  |  |  | Nine Months Ended |  |  |  | Nine Months Ended |
|  | September 30, |  |  |  | September 30, |  |  |  | September 30, |
|  | 2016 |  | 2015 |  |  |  | 2016 |  | 2015 |  |  |  | 2016 |  | 2015 |
|  |  | Millions |
| PSEG |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Energy-Related Contracts |  | $ | — |  |  | $ | 2 |  |  | Operating Revenues |  | $ | — |  |  | $ | 17 |  |  | Operating Revenues |  | $ | — |  |  | $ | — |  |
| Interest Rate Swaps |  | 3 |  |  | — |  |  | Interest Expense |  | — |  |  | — |  |  | Interest Expense |  | — |  |  | — |  |
| Total PSEG |  | $ | 3 |  |  | $ | 2 |  |  |  |  | $ | — |  |  | $ | 17 |  |  |  |  | $ | — |  |  | $ | — |  |
| Power |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Energy-Related Contracts |  | $ | — |  |  | $ | 2 |  |  | Operating Revenues |  | $ | — |  |  | $ | 17 |  |  | Operating Revenues |  | $ | — |  |  | $ | — |  |
| Total Power |  | $ | — |  |  | $ | 2 |  |  |  |  | $ | — |  |  | $ | 17 |  |  |  |  | $ | — |  |  | $ | — |  |
The following reconciles the Accumulated Other Comprehensive Income for derivative activity included in the Accumulated Other Comprehensive Loss of PSEG on a pre-tax and after-tax basis.
| Accumulated Other Comprehensive Income |  | Pre-Tax |  | After-Tax |
|  |  | Millions |
| Balance as of December 31, 2015 |  | $ | — |  |  | $ | — |  |
| Gain Recognized in AOCI |  | 2 |  | — |  | 1 |  |
| Less: Gain Reclassified into Income |  | — |  |  | — |  |
| Balance as of June 30, 2016 |  | $ | 2 |  |  | $ | 1 |  |
| Gain Recognized in AOCI |  | 1 |  |  | 1 |  |
| Less: Gain Reclassified into Income |  | — |  |  | — |  |
| Balance as of September 30, 2016 |  | $ | 3 |  |  | $ | 2 |  |
The following shows the effect on the Condensed Consolidated Statements of Operations of derivative instruments not designated as hedging instruments or as NPNS, such as its BGS contracts and certain other energy supply contracts, for the three months and nine months ended September 30, 2016 and 2015. Power’s derivative contracts reflected in these tables include contracts to hedge the purchase and sale of electricity and natural gas, and the purchase of fuel.
| Derivatives Not Designated as Hedges |  | Location of Pre-Tax Gain (Loss) Recognized in Income on Derivatives |  | Pre-Tax Gain (Loss) Recognized in Income on Derivatives |
|  |  |  |  | Three Months Ended |  | Nine Months Ended |
|  |  |  |  | September 30, |  | September 30, |
|  |  |  |  | 2016 |  | 2015 |  | 2016 |  | 2015 |
|  |  |  |  | Millions |
| PSEG and Power |  |  |  |  |  |  |  |  |  |  |
| Energy-Related Contracts |  | Operating Revenues |  | $ | 125 |  |  | $ | 154 |  |  | $ | 255 |  |  | $ | 202 |  |
| Energy-Related Contracts |  | Energy Costs |  | (11 | ) |  | (4 | ) |  | (3 | ) |  | (4 | ) |
| Total PSEG and Power |  |  |  | $ | 114 |  |  | $ | 150 |  |  | $ | 252 |  |  | $ | 198 |  |
The following reflects the gross volume, on an absolute value basis, of derivatives as of September 30, 2016 and December 31, 2015.
| Type |  | Notional |  | Total |  | PSEG |  | Power |  | PSE&G |
|  |  |  |  | Millions |
| As of September 30, 2016 |  |  |  |  |  |  |  |  |  |  |
| Natural Gas |  | Dekatherm (Dth) |  | 315 |  |  | — |  |  | 300 |  |  | 15 |  |
| Electricity |  | MWh |  | 349 |  |  | — |  |  | 349 |  |  | — |  |
| Financial Transmission Rights (FTRs) |  | MWh |  | 14 |  |  | — |  |  | 14 |  |  | — |  |
| Interest Rate Swaps |  | U.S. Dollars |  | 500 |  |  | 500 |  |  | — |  |  | — |  |
| As of December 31, 2015 |  |  |  |  |  |  |  |  |  |  |
| Natural Gas |  | Dth |  | 201 |  |  | — |  |  | 168 |  |  | 33 |  |
| Electricity |  | MWh |  | 299 |  |  | — |  |  | 299 |  |  | — |  |
| FTRs |  | MWh |  | 23 |  |  | — |  |  | 23 |  |  | — |  |
| Interest Rate Swaps |  | U.S. Dollars |  | 550 |  |  | 550 |  |  | — |  |  | — |  |
Credit Risk Credit risk relates to the risk of loss that we would incur as a result of non-performance by counterparties pursuant to the terms of their contractual obligations. We have established credit policies that we believe significantly minimize credit risk. These policies include an evaluation of potential counterparties’ financial condition (including credit rating), collateral requirements under certain circumstances and the use of standardized agreements, which allow for the netting of positive and negative exposures associated with a single counterparty. In the event of non-performance or non-payment by a major counterparty, there may be a material adverse impact on Power’s and PSEG’s financial condition, results of operations or net cash flows. As of September 30, 2016, 92% of the net credit exposure for Power’s operations was with investment grade counterparties. Credit exposure is defined as any positive results of netting accounts receivable/accounts payable and the forward value of open positions (which includes all financial instruments including derivatives and non-derivatives and normal purchases/normal sales). The following table provides information on Power’s credit risk from others, net of collateral, as of September 30, 2016. It further delineates that exposure by the credit rating of the counterparties and provides guidance on the concentration of credit risk to individual counterparties and an indication of the quality of Power’s credit risk by credit rating of the counterparties.
| Rating |  | Current Exposure |  | Securities Held as Collateral |  | Net Exposure |  | Number of Counterparties >10% |  | Net Exposure of Counterparties >10% |  |
|  |  | Millions |  |  |  | Millions |  |
| Investment Grade—External Rating |  | $ | 384 |  |  | $ | 135 |  |  | $ | 249 |  |  | 2 |  |  | $ | 147 |  | (A) |
| Non-Investment Grade—External Rating |  | 24 |  |  | — |  |  | 24 |  |  | — |  |  | — |  |  |
| Investment Grade—No External Rating |  | 9 |  |  | — |  |  | 9 |  |  | — |  |  | — |  |  |
| Non-Investment Grade—No External Rating |  | 1 |  |  | 1 |  |  | — |  |  | — |  |  | — |  |  |
| Total |  | $ | 418 |  |  | $ | 136 |  |  | $ | 282 |  |  | 2 |  |  | $ | 147 |  |  |
(A) | Represents net exposure of $114 million with PSE&G. The remaining net exposure of $33 million is with a non-affiliated power purchaser which is an investment grade counterparty.
As of September 30, 2016, collateral held from counterparties where Power had credit exposure included $3 million in cash collateral and $133 million in letters of credit. As of September 30, 2016, Power had 135 active counterparties. PSE&G’s supplier master agreements are approved by the BPU and govern the terms of its electric supply procurement contracts. These agreements define a supplier’s performance assurance requirements and allow a supplier to meet its credit requirements with a certain amount of unsecured credit. The amount of unsecured credit is determined based on the supplier’s credit ratings from the major credit rating agencies and the supplier’s tangible net worth. The credit position is based on the initial market price, which is the forward price of energy on the day the procurement transaction is executed, compared to the forward price curve for energy on the valuation day. To the extent that the forward price curve for energy exceeds the initial market price, the supplier is required to post a parental guaranty or other security instrument such as a letter of credit or cash, as collateral to the extent the credit exposure is greater than the supplier’s unsecured credit limit. As of September 30, 2016, primarily all of the posted collateral was in the form of parental guarantees. The unsecured credit used by the suppliers represents PSE&G’s net credit exposure. PSE&G’s suppliers’ credit exposure is calculated each business day. As of September 30, 2016, PSE&G had no net credit exposure with suppliers, including Power. PSE&G is permitted to recover its costs of procuring energy through the BPU-approved BGS tariffs. PSE&G’s counterparty credit risk is mitigated by its ability to recover realized energy costs through customer rates.
Power [Member] |
Derivative Instruments and Hedging Activities Disclosures [Line Items] |
Financial Risk Management Activities | Financial Risk Management Activities The operations of PSEG, Power and PSE&G are exposed to market risks from changes in commodity prices, interest rates and equity prices that could affect their results of operations and financial condition. Exposure to these risks is managed through normal operating and financing activities and, when appropriate, through hedging transactions. Hedging transactions use derivative instruments to create a relationship in which changes to the value of the assets, liabilities or anticipated transactions exposed to market risks are expected to be offset by changes in the value of these derivative instruments. Derivative accounting guidance requires that a derivative instrument be recognized as either an asset or a liability at fair value, with changes in fair value of the derivative recognized in earnings each period. Other accounting treatments are available through special election and designation provided that the derivative instrument meets specific, restrictive criteria, both at the time of designation and on an ongoing basis. These alternative permissible treatments include normal purchase normal sale (NPNS), cash flow hedge and fair value hedge accounting. PSEG, Power and PSE&G have applied the NPNS scope exception to certain derivative contracts for the forward sale of generation, power procurement agreements and fuel agreements. Transactions receiving NPNS treatment are accounted for upon settlement. For a derivative instrument that qualifies and is designated as a cash flow hedge, the changes in the fair value of such a derivative that are highly effective are recorded in Accumulated Other Comprehensive Income (Loss) until earnings are affected by the variability of cash flows of the hedged transaction. For a derivative instrument that qualifies and is designated as a fair value hedge, the gains or losses on the derivative as well as the offsetting losses or gains on the hedged item attributable to the hedged risk are recognized in earnings each period. Power and PSE&G enter into additional contracts that are derivatives, but are not designated as either cash flow hedges or fair value hedges. These transactions are economic hedges and are recorded at fair market value. Commodity Prices Within PSEG and its affiliate companies, Power has the most exposure to commodity price risk. Power is exposed to price risk primarily relating to changes in the market price of electricity, fossil fuels and other commodities. Fluctuations in market prices result from changes in supply and demand, fuel costs, market conditions, weather, state and federal regulatory policies, environmental policies, transmission availability and other factors. Power uses a variety of derivative and non-derivative instruments to manage the commodity price risk of its electric generation facilities, including physical and financial transactions in the wholesale energy markets to mitigate the effects of adverse movements in fuel and electricity prices. The fair value for the majority of these contracts is obtained from quoted market sources. Modeling techniques using assumptions reflective of current market rates, yield curves and forward prices are used to interpolate certain prices when no quoted market exists. PSEG had no commodity derivative transactions designated as cash flow or fair value hedges as of September 30, 2016 and December 31, 2015. Economic Hedges Power enters into derivative contracts that are not designated as either cash flow or fair value hedges. Power enters into financial options, futures, swaps, fuel purchases and forward purchases and sales of electricity. These transactions are economic hedges, intended to mitigate exposure to fluctuations in commodity prices and optimize the value of Power’s expected generation. Changes in the fair market value of these contracts are recorded in earnings. PSE&G is a party to a long-term natural gas sales derivative contract to optimize its pipeline capacity utilization. Changes in the fair market value of the contract are recorded in Regulatory Assets and Regulatory Liabilities. Interest Rates PSEG, Power and PSE&G are subject to the risk of fluctuating interest rates in the normal course of business. Exposure to this risk is managed by targeting a balanced debt maturity profile which limits refinancing in any given period or interest rate environment. In addition, they have used a mix of fixed and floating rate debt and interest rate swaps. Fair Value Hedges PSEG enters into fair value hedges to convert fixed-rate debt into variable-rate debt. The changes in fair value of the interest rate swaps are fully offset by the changes in the fair value of the underlying forecasted interest payments of the debt. Interest rate swaps totaling $550 million that converted the retired Power’s Senior Notes due September 2016 into variable-rate debt matured in the third quarter. There were no outstanding interest rate swaps as of September 30, 2016. As of December 31, 2015, the fair value of all the underlying hedges was $6 million. The effect of these hedges reduced interest expense by $2 million and $5 million for the three months ended September 30, 2016 and 2015, respectively, and $6 million and $15 million for the nine months ended September 30, 2016 and 2015, respectively. Cash Flow Hedges PSEG uses interest rate swaps and other derivatives, which are designated and effective as cash flow hedges, to manage its exposure to the variability of cash flows, primarily related to variable-rate debt instruments. As of September 30, 2016, PSEG had interest rate hedges outstanding totaling $500 million. These hedges convert PSEG’s $500 million variable rate term loan due November 2017 into a fixed rate loan. The fair value of these hedges and the related ineffectiveness were immaterial as of September 30, 2016. PSEG interest rate hedges totaling $400 million were terminated during the second quarter and a gain of $2 million was recorded in Accumulated Other Comprehensive Income (Loss) (after tax) and will amortize to interest expense over the remaining life of Power’s $700 million of 3% Senior Notes due June 2021. For additional information see Note 10. Debt and Credit Facilities. There were no outstanding interest rate cash flow hedges as of December 31, 2015. The Accumulated Other Comprehensive Income (Loss) (after tax) related to existing and terminated interest rate derivatives designated as cash flow hedges was $2 million as of September 30, 2016 and was immaterial as of December 31, 2015. The after-tax unrealized gains on these hedges expected to be reclassified to earnings during the next 12 months are immaterial. The expiration date of the longest-dated interest rate hedge is in May 2021. Fair Values of Derivative Instruments The following are the fair values of derivative instruments on the Condensed Consolidated Balance Sheets. The following tables also include disclosures for offsetting derivative assets and liabilities which are subject to a master netting or similar agreement. In general, the terms of the agreements provide that in the event of an early termination the counterparties have the right to offset amounts owed or owing under that and any other agreement with the same counterparty. Accordingly, and in accordance with PSEG’s accounting policy, these positions have been offset on the Condensed Consolidated Balance Sheets of Power, PSE&G and PSEG. The following tabular disclosure does not include the offsetting of trade receivables and payables.
|  |  | As of September 30, 2016 (A) |
|  |  | Power |  | PSE&G |  | PSEG |  | Consolidated |
|  |  | Not Designated |  |  |  |  |  | Not Designated |  | Designated as Hedges |  |  |
| Balance Sheet Location |  | Energy- Related Contracts |  | Netting (B) |  | Total Power |  | Energy- Related Contracts |  | Interest Rate Swaps |  | Total Derivatives |
|  |  | Millions |
| Derivative Contracts |  |  |  |  |  |  |  |  |  |  |  |  |
| Current Assets |  | $ | 432 |  |  | $ | (283 | ) |  | $ | 149 |  |  | $ | — |  |  | $ | — |  |  | $ | 149 |  |
| Noncurrent Assets |  | 305 |  |  | (219 | ) |  | 86 |  |  | — |  |  | — |  |  | 86 |  |
| Total Mark-to-Market Derivative Assets |  | $ | 737 |  |  | $ | (502 | ) |  | $ | 235 |  |  | $ | — |  |  | $ | — |  |  | $ | 235 |  |
| Derivative Contracts |  |  |  |  |  |  |  |  |  |  |  |  |
| Current Liabilities |  | $ | (314 | ) |  | $ | 278 |  |  | $ | (36 | ) |  | $ | (4 | ) |  | $ | — |  |  | $ | (40 | ) |
| Noncurrent Liabilities |  | (219 | ) |  | 206 |  |  | (13 | ) |  | — |  |  | — |  |  | (13 | ) |
| Total Mark-to-Market Derivative (Liabilities) |  | $ | (533 | ) |  | $ | 484 |  |  | $ | (49 | ) |  | $ | (4 | ) |  | $ | — |  |  | $ | (53 | ) |
| Total Net Mark-to-Market Derivative Assets (Liabilities) |  | $ | 204 |  |  | $ | (18 | ) |  | $ | 186 |  |  | $ | (4 | ) |  | $ | — |  |  | $ | 182 |  |
|  |  | As of December 31, 2015 (A) |
|  |  | Power |  | PSE&G |  | PSEG |  | Consolidated |
|  |  | Not Designated |  |  |  |  |  | Not Designated |  | Designated as Hedges |  |  |
| Balance Sheet Location |  | Energy- Related Contracts |  | Netting (B) |  | Total Power |  | Energy- Related Contracts |  | Interest Rate Swaps |  | Total Derivatives |
|  |  | Millions |
| Derivative Contracts |  |  |  |  |  |  |  |  |  |  |  |  |
| Current Assets |  | $ | 700 |  |  | $ | (477 | ) |  | $ | 223 |  |  | $ | 13 |  |  | $ | 6 |  |  | $ | 242 |  |
| Noncurrent Assets |  | 208 |  |  | (131 | ) |  | 77 |  |  | — |  |  | — |  |  | 77 |  |
| Total Mark-to-Market Derivative Assets |  | $ | 908 |  |  | $ | (608 | ) |  | $ | 300 |  |  | $ | 13 |  |  | $ | 6 |  |  | $ | 319 |  |
| Derivative Contracts |  |  |  |  |  |  |  |  |  |  |  |  |
| Current Liabilities |  | $ | (513 | ) |  | $ | 437 |  |  | $ | (76 | ) |  | $ | — |  |  | $ | — |  |  | $ | (76 | ) |
| Noncurrent Liabilities |  | (132 | ) |  | 116 |  |  | (16 | ) |  | (11 | ) |  | — |  |  | (27 | ) |
| Total Mark-to-Market Derivative (Liabilities) |  | $ | (645 | ) |  | $ | 553 |  |  | $ | (92 | ) |  | $ | (11 | ) |  | $ | — |  |  | $ | (103 | ) |
| Total Net Mark-to-Market Derivative Assets (Liabilities) |  | $ | 263 |  |  | $ | (55 | ) |  | $ | 208 |  |  | $ | 2 |  |  | $ | 6 |  |  | $ | 216 |  |
(A) | Substantially all of Power’s and PSEG’s derivative instruments are contracts subject to master netting agreements. Contracts not subject to master netting or similar agreements are immaterial and did not have any collateral posted or received as of September 30, 2016 and December 31, 2015. PSE&G does not have any derivative contracts subject to master netting or similar agreements.
(B) | Represents the netting of fair value balances with the same counterparty (where the right of offset exists) and the application of collateral. All cash collateral received or posted that has been allocated to derivative positions, where the right of offset exists, has been offset on the Condensed Consolidated Balance Sheets. As of September 30, 2016 and December 31, 2015, net cash collateral (received) paid of $(18) million and $(55) million, respectively, were netted against the corresponding net derivative contract positions. Of the $(18) million as of September 30, 2016, $(13) million and $(14) million of cash collateral were netted against current assets and noncurrent assets, respectively, and $9 million was netted against current liabilities. Of the $(55) million as of December 31, 2015, $(53) million and $(16) million were netted against current assets and noncurrent assets, respectively, and $12 million and $2 million were netted against current liabilities and noncurrent liabilities, respectively.
Certain of Power’s derivative instruments contain provisions that require Power to post collateral. This collateral may be posted in the form of cash or credit support with thresholds contingent upon Power’s credit rating from each of the major credit rating agencies. The collateral and credit support requirements vary by contract and by counterparty. These credit risk-related contingent features stipulate that if Power were to be downgraded to a below investment grade rating, it would be required to provide additional collateral. A below investment grade credit rating for Power would represent a three level downgrade from its current S&P and Moody’s ratings. This incremental collateral requirement can offset collateral requirements related to other derivative instruments that are assets with the same counterparty, where the contractual right of offset exists under applicable master agreements. Power also enters into commodity transactions on the New York Mercantile Exchange (NYMEX) and Intercontinental Exchange (ICE). The NYMEX and ICE clearing houses act as counterparties to each trade. Transactions on the NYMEX and ICE must adhere to comprehensive collateral and margin requirements. The aggregate fair value of all derivative instruments with credit risk-related contingent features in a liability position that are not fully collateralized (excluding transactions on the NYMEX and ICE that are fully collateralized, and contracts designated as NPNS) was $42 million and $78 million as of September 30, 2016 and December 31, 2015, respectively. As of September 30, 2016 and December 31, 2015, Power had the contractual right of offset of $11 million and $12 million, respectively, related to derivative instruments that are assets with the same counterparty under agreements and net of margin posted. If Power had been downgraded to a below investment grade rating, it would have had additional collateral obligations of $31 million and $66 million as of September 30, 2016 and December 31, 2015, respectively, related to its derivatives, net of the contractual right of offset under master agreements and the application of collateral. The following shows the effect on the Condensed Consolidated Statements of Operations and on Accumulated Other Comprehensive Income (AOCI) of derivative instruments designated as cash flow hedges for the three months ended September 30, 2016 and 2015.
| Derivatives in Cash Flow Hedging Relationships |  | Amount of Pre-Tax Gain (Loss) Recognized in AOCI on Derivatives (Effective Portion) |  | Location of Pre-Tax Gain (Loss) Reclassified from AOCI into Income |  | Amount of Pre-Tax Gain (Loss) Reclassified from AOCI into Income (Effective Portion) |  | Location of Pre-Tax Gain (Loss) Recognized in Income on Derivatives (Ineffective Portion) |  | Amount of Pre-Tax Gain (Loss) Recognized in Income on Derivatives (Ineffective Portion) |
|  | Three Months Ended |  |  |  | Three Months Ended |  |  |  | Three Months Ended |
|  | September 30, |  |  |  | September 30, |  |  |  | September 30, |
|  | 2016 |  | 2015 |  |  |  | 2016 |  | 2015 |  |  |  | 2016 |  | 2015 |
|  |  | Millions |
| PSEG |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Energy-Related Contracts |  | $ | — |  |  | $ | 1 |  |  | Operating Revenues |  | $ | — |  |  | $ | — |  |  | Operating Revenues |  | $ | — |  |  | $ | — |  |
| Interest Rate Swaps |  | 1 |  |  | — |  |  | Interest Expense |  | — |  |  | — |  |  | Interest Expense |  | — |  |  | — |  |
| Total PSEG |  | $ | 1 |  |  | $ | 1 |  |  |  |  | $ | — |  |  | $ | — |  |  |  |  | $ | — |  |  | $ | — |  |
| Power |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Energy-Related Contracts |  | $ | — |  |  | $ | 1 |  |  | Operating Revenues |  | $ | — |  |  | $ | — |  |  | Operating Revenues |  | $ | — |  |  | $ | — |  |
| Total Power |  | $ | — |  |  | $ | 1 |  |  |  |  | $ | — |  |  | $ | — |  |  |  |  | $ | — |  |  | $ | — |  |
The following shows the effect on the Condensed Consolidated Statements of Operations and on Accumulated Other Comprehensive Income (AOCI) of derivative instruments designated as cash flow hedges for the nine months ended September 30, 2016 and 2015.
| Derivatives in Cash Flow Hedging Relationships |  | Amount of Pre-Tax Gain (Loss) Recognized in AOCI on Derivatives (Effective Portion) |  | Location of Pre-Tax Gain (Loss) Reclassified from AOCI into Income |  | Amount of Pre-Tax Gain (Loss) Reclassified from AOCI into Income (Effective Portion) |  | Location of Pre-Tax Gain (Loss) Recognized in Income on Derivatives (Ineffective Portion) |  | Amount of Pre-Tax Gain (Loss) Recognized in Income on Derivatives (Ineffective Portion) |
|  | Nine Months Ended |  |  |  | Nine Months Ended |  |  |  | Nine Months Ended |
|  | September 30, |  |  |  | September 30, |  |  |  | September 30, |
|  | 2016 |  | 2015 |  |  |  | 2016 |  | 2015 |  |  |  | 2016 |  | 2015 |
|  |  | Millions |
| PSEG |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Energy-Related Contracts |  | $ | — |  |  | $ | 2 |  |  | Operating Revenues |  | $ | — |  |  | $ | 17 |  |  | Operating Revenues |  | $ | — |  |  | $ | — |  |
| Interest Rate Swaps |  | 3 |  |  | — |  |  | Interest Expense |  | — |  |  | — |  |  | Interest Expense |  | — |  |  | — |  |
| Total PSEG |  | $ | 3 |  |  | $ | 2 |  |  |  |  | $ | — |  |  | $ | 17 |  |  |  |  | $ | — |  |  | $ | — |  |
| Power |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Energy-Related Contracts |  | $ | — |  |  | $ | 2 |  |  | Operating Revenues |  | $ | — |  |  | $ | 17 |  |  | Operating Revenues |  | $ | — |  |  | $ | — |  |
| Total Power |  | $ | — |  |  | $ | 2 |  |  |  |  | $ | — |  |  | $ | 17 |  |  |  |  | $ | — |  |  | $ | — |  |
The following reconciles the Accumulated Other Comprehensive Income for derivative activity included in the Accumulated Other Comprehensive Loss of PSEG on a pre-tax and after-tax basis.
| Accumulated Other Comprehensive Income |  | Pre-Tax |  | After-Tax |
|  |  | Millions |
| Balance as of December 31, 2015 |  | $ | — |  |  | $ | — |  |
| Gain Recognized in AOCI |  | 2 |  | — |  | 1 |  |
| Less: Gain Reclassified into Income |  | — |  |  | — |  |
| Balance as of June 30, 2016 |  | $ | 2 |  |  | $ | 1 |  |
| Gain Recognized in AOCI |  | 1 |  |  | 1 |  |
| Less: Gain Reclassified into Income |  | — |  |  | — |  |
| Balance as of September 30, 2016 |  | $ | 3 |  |  | $ | 2 |  |
The following shows the effect on the Condensed Consolidated Statements of Operations of derivative instruments not designated as hedging instruments or as NPNS, such as its BGS contracts and certain other energy supply contracts, for the three months and nine months ended September 30, 2016 and 2015. Power’s derivative contracts reflected in these tables include contracts to hedge the purchase and sale of electricity and natural gas, and the purchase of fuel.
| Derivatives Not Designated as Hedges |  | Location of Pre-Tax Gain (Loss) Recognized in Income on Derivatives |  | Pre-Tax Gain (Loss) Recognized in Income on Derivatives |
|  |  |  |  | Three Months Ended |  | Nine Months Ended |
|  |  |  |  | September 30, |  | September 30, |
|  |  |  |  | 2016 |  | 2015 |  | 2016 |  | 2015 |
|  |  |  |  | Millions |
| PSEG and Power |  |  |  |  |  |  |  |  |  |  |
| Energy-Related Contracts |  | Operating Revenues |  | $ | 125 |  |  | $ | 154 |  |  | $ | 255 |  |  | $ | 202 |  |
| Energy-Related Contracts |  | Energy Costs |  | (11 | ) |  | (4 | ) |  | (3 | ) |  | (4 | ) |
| Total PSEG and Power |  |  |  | $ | 114 |  |  | $ | 150 |  |  | $ | 252 |  |  | $ | 198 |  |
The following reflects the gross volume, on an absolute value basis, of derivatives as of September 30, 2016 and December 31, 2015.
| Type |  | Notional |  | Total |  | PSEG |  | Power |  | PSE&G |
|  |  |  |  | Millions |
| As of September 30, 2016 |  |  |  |  |  |  |  |  |  |  |
| Natural Gas |  | Dekatherm (Dth) |  | 315 |  |  | — |  |  | 300 |  |  | 15 |  |
| Electricity |  | MWh |  | 349 |  |  | — |  |  | 349 |  |  | — |  |
| Financial Transmission Rights (FTRs) |  | MWh |  | 14 |  |  | — |  |  | 14 |  |  | — |  |
| Interest Rate Swaps |  | U.S. Dollars |  | 500 |  |  | 500 |  |  | — |  |  | — |  |
| As of December 31, 2015 |  |  |  |  |  |  |  |  |  |  |
| Natural Gas |  | Dth |  | 201 |  |  | — |  |  | 168 |  |  | 33 |  |
| Electricity |  | MWh |  | 299 |  |  | — |  |  | 299 |  |  | — |  |
| FTRs |  | MWh |  | 23 |  |  | — |  |  | 23 |  |  | — |  |
| Interest Rate Swaps |  | U.S. Dollars |  | 550 |  |  | 550 |  |  | — |  |  | — |  |
Credit Risk Credit risk relates to the risk of loss that we would incur as a result of non-performance by counterparties pursuant to the terms of their contractual obligations. We have established credit policies that we believe significantly minimize credit risk. These policies include an evaluation of potential counterparties’ financial condition (including credit rating), collateral requirements under certain circumstances and the use of standardized agreements, which allow for the netting of positive and negative exposures associated with a single counterparty. In the event of non-performance or non-payment by a major counterparty, there may be a material adverse impact on Power’s and PSEG’s financial condition, results of operations or net cash flows. As of September 30, 2016, 92% of the net credit exposure for Power’s operations was with investment grade counterparties. Credit exposure is defined as any positive results of netting accounts receivable/accounts payable and the forward value of open positions (which includes all financial instruments including derivatives and non-derivatives and normal purchases/normal sales). The following table provides information on Power’s credit risk from others, net of collateral, as of September 30, 2016. It further delineates that exposure by the credit rating of the counterparties and provides guidance on the concentration of credit risk to individual counterparties and an indication of the quality of Power’s credit risk by credit rating of the counterparties.
| Rating |  | Current Exposure |  | Securities Held as Collateral |  | Net Exposure |  | Number of Counterparties >10% |  | Net Exposure of Counterparties >10% |  |
|  |  | Millions |  |  |  | Millions |  |
| Investment Grade—External Rating |  | $ | 384 |  |  | $ | 135 |  |  | $ | 249 |  |  | 2 |  |  | $ | 147 |  | (A) |
| Non-Investment Grade—External Rating |  | 24 |  |  | — |  |  | 24 |  |  | — |  |  | — |  |  |
| Investment Grade—No External Rating |  | 9 |  |  | — |  |  | 9 |  |  | — |  |  | — |  |  |
| Non-Investment Grade—No External Rating |  | 1 |  |  | 1 |  |  | — |  |  | — |  |  | — |  |  |
| Total |  | $ | 418 |  |  | $ | 136 |  |  | $ | 282 |  |  | 2 |  |  | $ | 147 |  |  |
(A) | Represents net exposure of $114 million with PSE&G. The remaining net exposure of $33 million is with a non-affiliated power purchaser which is an investment grade counterparty.
As of September 30, 2016, collateral held from counterparties where Power had credit exposure included $3 million in cash collateral and $133 million in letters of credit. As of September 30, 2016, Power had 135 active counterparties. PSE&G’s supplier master agreements are approved by the BPU and govern the terms of its electric supply procurement contracts. These agreements define a supplier’s performance assurance requirements and allow a supplier to meet its credit requirements with a certain amount of unsecured credit. The amount of unsecured credit is determined based on the supplier’s credit ratings from the major credit rating agencies and the supplier’s tangible net worth. The credit position is based on the initial market price, which is the forward price of energy on the day the procurement transaction is executed, compared to the forward price curve for energy on the valuation day. To the extent that the forward price curve for energy exceeds the initial market price, the supplier is required to post a parental guaranty or other security instrument such as a letter of credit or cash, as collateral to the extent the credit exposure is greater than the supplier’s unsecured credit limit. As of September 30, 2016, primarily all of the posted collateral was in the form of parental guarantees. The unsecured credit used by the suppliers represents PSE&G’s net credit exposure. PSE&G’s suppliers’ credit exposure is calculated each business day. As of September 30, 2016, PSE&G had no net credit exposure with suppliers, including Power. PSE&G is permitted to recover its costs of procuring energy through the BPU-approved BGS tariffs. PSE&G’s counterparty credit risk is mitigated by its ability to recover realized energy costs through customer rates.

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- Definition The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 30 -Section 45 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6441202&loc=d3e80720-113993 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4C -URI http://asc.fasb.org/extlink&oid=56946850&loc=SL5624171-113959 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=56946850&loc=d3e41620-113959 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4B -URI http://asc.fasb.org/extlink&oid=56946850&loc=SL5624163-113959 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=56946850&loc=SL5579240-113959 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4D -URI http://asc.fasb.org/extlink&oid=56946850&loc=SL5624177-113959 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 30 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=35736893&loc=d3e80784-113994 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=56946850&loc=d3e41641-113959 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 1A -URI http://asc.fasb.org/extlink&oid=56946850&loc=SL5579245-113959 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4H -URI http://asc.fasb.org/extlink&oid=56946850&loc=SL5624258-113959 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 30 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=35736893&loc=d3e80748-113994 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4K -URI http://asc.fasb.org/extlink&oid=56946850&loc=SL5708775-113959 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4J -URI http://asc.fasb.org/extlink&oid=56946850&loc=SL5708773-113959 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4A -URI http://asc.fasb.org/extlink&oid=56946850&loc=SL5618551-113959 Reference 15: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 1B -URI http://asc.fasb.org/extlink&oid=56946850&loc=SL5580258-113959 Reference 16: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4E -URI http://asc.fasb.org/extlink&oid=56946850&loc=SL5624181-113959 Reference 17: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 25 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6886632&loc=d3e76258-113986 Reference 18: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=56946850&loc=d3e41638-113959 Reference 19: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(n)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 + Details
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