XML 33 R10.htm IDEA: XBRL DOCUMENT
v3.8.0.1

Early Plant Retirements Early Plant Retirements | 9 Months Ended
--- | ---
Sep. 30, 2017
Early Plant Retirements [Line Items] |
Early Plant Retirements | Early Plant Retirements Fossil In October 2016, Power determined that it would cease generation operations of the existing coal/gas units at the Hudson and Mercer generating stations on June 1, 2017. Both units were available to operate through May 31, 2017 and were subsequently retired from operation on June 1, 2017. In the latter half of 2016, PSEG and Power recognized pre-tax charges in Energy Costs and Operation and Maintenance (O&M) of $62 million and $53 million, respectively, related to coal inventory adjustments, capacity penalties, materials and supplies inventory reserve adjustments for parts that cannot be used at other generating units, employee-related severance benefits costs and construction work in progress impairments, among other shut down items. In addition to these charges, Power recognized Depreciation and Amortization (D&A) during 2016 of $571 million due to the significant shortening of the expected economic useful lives of Hudson and Mercer. As of June 1, 2017, Power recognized total D&A of $964 million for the Hudson and Mercer units to reflect the end of their economic useful lives in 2017. In the three and nine months ended September 30, 2017, Power recognized pre-tax charges in Energy Costs of $1 million and $10 million, respectively, primarily for coal inventory lower of cost or market adjustments. For the three and nine months ended September 30, 2017, Power also recognized pre-tax charges in O&M of $8 million and $12 million, respectively, of shut down costs and an increase in the Asset Retirement Obligation due to settlements and changes in cash flow estimates, partially offset by changes in employee-related severance costs. Power currently anticipates using the sites for alternative industrial activity. However, if Power determines not to use the sites for alternative industrial activity, the early retirement of the units at such sites would trigger obligations under certain environmental regulations, including possible remediation. The amounts for any such environmental remediation are neither currently probable nor estimable but may be material. As of December 31, 2016, Power had reduced the estimated useful life of Bridgeport Harbor Station unit 3 (BH3) from 2025 to the summer of 2021 as it was more likely than not it will retire the unit by this time. PSEG and Power continue to monitor their other coal assets, including the Keystone and Conemaugh generating stations, to assess their economic viability through the end of their designated useful lives and their continued classification as held for use. The precise timing of a change in useful lives may be dependent upon events out of PSEG’s and Power’s control and may impact their ability to operate or maintain certain assets in the future. These generating stations may be impacted by factors such as environmental legislation, co-owner capital requirements and continued depressed wholesale power prices or capacity factors, among other things. Any early retirement or change in the held for use classification of our remaining coal units may have a material adverse impact on PSEG’s and Power’s future financial results. Nuclear Since 2013, several nuclear generating stations in the United States have closed or announced early retirement due to economic reasons, or have announced being at risk for early retirement. This situation is generally due to the decline in market prices of energy, resulting from low natural gas prices driven by the growth of shale gas production since 2007, the continuing cost of regulatory compliance and enhanced security for nuclear facilities and both federal and state-level policies that provide financial incentives to renewable energy such as wind and solar, but generally do not apply to nuclear generating stations. These trends have significantly reduced the revenues of nuclear generating stations while limiting their ability to reduce the unit cost of production. This may result in the electric generation industry experiencing a shift from nuclear generation to natural gas-fired generation, creating less diversity of the generation fleet. If the market trends noted above continue or worsen, Power’s New Jersey nuclear generating units could cease being economically competitive which may cause Power to retire such units prior to the end of their useful lives. The costs associated with any such potential retirement, which may include, among other things, accelerated D&A or impairment charges, accelerated asset retirement costs, severance costs, environmental remediation costs, and additional funding of the NDT Fund would likely have a material adverse impact on PSEG’s and Power’s future financial results and cash flows. PSEG and Power continue to advocate for sound policies that recognize nuclear power as a source of reliable clean energy, free of air emissions and an important part of a diverse and reliable energy portfolio. The following table provides the balance sheet amounts by generating station as of September 30, 2017 for significant assets and liabilities associated with Power’s owned share of its nuclear assets.
|  |  | As of September 30, 2017 |
|  |  | Hope Creek |  | Salem |  | Support Facilities and Other (A) |  | Peach Bottom |
|  |  | Millions |
| Assets |  |  |  |  |  |  |  |  |
| Materials and Supplies Inventory |  | $ | 85 |  |  | $ | 81 |  |  | $ | — |  |  | $ | 41 |  |
| Nuclear Production, net of Accumulated Depreciation |  | 452 |  |  | 557 |  |  | 204 |  |  | 753 |  |
| Nuclear Fuel In-Service, net of Accumulated Depreciation |  | 120 |  |  | 94 |  |  | — |  |  | 109 |  |
| Construction Work in Progress (including nuclear fuel) |  | 216 |  |  | 130 |  |  | 9 |  |  | 92 |  |
| Total Assets |  | $ | 873 |  |  | $ | 862 |  |  | $ | 213 |  |  | $ | 995 |  |
| Liability |  |  |  |  |  |  |  |  |
| Asset Retirement Obligation |  | $ | 148 |  |  | $ | 162 |  |  | $ | — |  |  | $ | 164 |  |
| Total Liabilities |  | $ | 148 |  |  | $ | 162 |  |  | $ | — |  |  | $ | 164 |  |
| Net Assets |  | $ | 725 |  |  | $ | 700 |  |  | $ | 213 |  |  | $ | 831 |  |
| NRC License Renewal Term |  | 2046 |  | 2036/2040 |  |  | — |  |  | 2033/2034 |  |
| % Owned |  | 100 | % |  | 57 | % |  | — |  |  | 50 | % |
(A) | Includes Hope Creek’s and Salem’s shared support facilities and other nuclear development capital.
The precise timing of any potential early retirement and resulting financial statement impact may be affected by a number of factors, including co-owner considerations, the results of any transmission system reliability study assessments and decommissioning trust fund requirements and other commitments, as well as future energy prices. Power maintains a NDT Fund that funds its decommissioning obligations. See Note 7. Available-for-Sale Securities.
Power [Member] |
Early Plant Retirements [Line Items] |
Early Plant Retirements | Early Plant Retirements Fossil In October 2016, Power determined that it would cease generation operations of the existing coal/gas units at the Hudson and Mercer generating stations on June 1, 2017. Both units were available to operate through May 31, 2017 and were subsequently retired from operation on June 1, 2017. In the latter half of 2016, PSEG and Power recognized pre-tax charges in Energy Costs and Operation and Maintenance (O&M) of $62 million and $53 million, respectively, related to coal inventory adjustments, capacity penalties, materials and supplies inventory reserve adjustments for parts that cannot be used at other generating units, employee-related severance benefits costs and construction work in progress impairments, among other shut down items. In addition to these charges, Power recognized Depreciation and Amortization (D&A) during 2016 of $571 million due to the significant shortening of the expected economic useful lives of Hudson and Mercer. As of June 1, 2017, Power recognized total D&A of $964 million for the Hudson and Mercer units to reflect the end of their economic useful lives in 2017. In the three and nine months ended September 30, 2017, Power recognized pre-tax charges in Energy Costs of $1 million and $10 million, respectively, primarily for coal inventory lower of cost or market adjustments. For the three and nine months ended September 30, 2017, Power also recognized pre-tax charges in O&M of $8 million and $12 million, respectively, of shut down costs and an increase in the Asset Retirement Obligation due to settlements and changes in cash flow estimates, partially offset by changes in employee-related severance costs. Power currently anticipates using the sites for alternative industrial activity. However, if Power determines not to use the sites for alternative industrial activity, the early retirement of the units at such sites would trigger obligations under certain environmental regulations, including possible remediation. The amounts for any such environmental remediation are neither currently probable nor estimable but may be material. As of December 31, 2016, Power had reduced the estimated useful life of Bridgeport Harbor Station unit 3 (BH3) from 2025 to the summer of 2021 as it was more likely than not it will retire the unit by this time. PSEG and Power continue to monitor their other coal assets, including the Keystone and Conemaugh generating stations, to assess their economic viability through the end of their designated useful lives and their continued classification as held for use. The precise timing of a change in useful lives may be dependent upon events out of PSEG’s and Power’s control and may impact their ability to operate or maintain certain assets in the future. These generating stations may be impacted by factors such as environmental legislation, co-owner capital requirements and continued depressed wholesale power prices or capacity factors, among other things. Any early retirement or change in the held for use classification of our remaining coal units may have a material adverse impact on PSEG’s and Power’s future financial results. Nuclear Since 2013, several nuclear generating stations in the United States have closed or announced early retirement due to economic reasons, or have announced being at risk for early retirement. This situation is generally due to the decline in market prices of energy, resulting from low natural gas prices driven by the growth of shale gas production since 2007, the continuing cost of regulatory compliance and enhanced security for nuclear facilities and both federal and state-level policies that provide financial incentives to renewable energy such as wind and solar, but generally do not apply to nuclear generating stations. These trends have significantly reduced the revenues of nuclear generating stations while limiting their ability to reduce the unit cost of production. This may result in the electric generation industry experiencing a shift from nuclear generation to natural gas-fired generation, creating less diversity of the generation fleet. If the market trends noted above continue or worsen, Power’s New Jersey nuclear generating units could cease being economically competitive which may cause Power to retire such units prior to the end of their useful lives. The costs associated with any such potential retirement, which may include, among other things, accelerated D&A or impairment charges, accelerated asset retirement costs, severance costs, environmental remediation costs, and additional funding of the NDT Fund would likely have a material adverse impact on PSEG’s and Power’s future financial results and cash flows. PSEG and Power continue to advocate for sound policies that recognize nuclear power as a source of reliable clean energy, free of air emissions and an important part of a diverse and reliable energy portfolio. The following table provides the balance sheet amounts by generating station as of September 30, 2017 for significant assets and liabilities associated with Power’s owned share of its nuclear assets.
|  |  | As of September 30, 2017 |
|  |  | Hope Creek |  | Salem |  | Support Facilities and Other (A) |  | Peach Bottom |
|  |  | Millions |
| Assets |  |  |  |  |  |  |  |  |
| Materials and Supplies Inventory |  | $ | 85 |  |  | $ | 81 |  |  | $ | — |  |  | $ | 41 |  |
| Nuclear Production, net of Accumulated Depreciation |  | 452 |  |  | 557 |  |  | 204 |  |  | 753 |  |
| Nuclear Fuel In-Service, net of Accumulated Depreciation |  | 120 |  |  | 94 |  |  | — |  |  | 109 |  |
| Construction Work in Progress (including nuclear fuel) |  | 216 |  |  | 130 |  |  | 9 |  |  | 92 |  |
| Total Assets |  | $ | 873 |  |  | $ | 862 |  |  | $ | 213 |  |  | $ | 995 |  |
| Liability |  |  |  |  |  |  |  |  |
| Asset Retirement Obligation |  | $ | 148 |  |  | $ | 162 |  |  | $ | — |  |  | $ | 164 |  |
| Total Liabilities |  | $ | 148 |  |  | $ | 162 |  |  | $ | — |  |  | $ | 164 |  |
| Net Assets |  | $ | 725 |  |  | $ | 700 |  |  | $ | 213 |  |  | $ | 831 |  |
| NRC License Renewal Term |  | 2046 |  | 2036/2040 |  |  | — |  |  | 2033/2034 |  |
| % Owned |  | 100 | % |  | 57 | % |  | — |  |  | 50 | % |
(A) | Includes Hope Creek’s and Salem’s shared support facilities and other nuclear development capital.
The precise timing of any potential early retirement and resulting financial statement impact may be affected by a number of factors, including co-owner considerations, the results of any transmission system reliability study assessments and decommissioning trust fund requirements and other commitments, as well as future energy prices. Power maintains a NDT Fund that funds its decommissioning obligations. See Note 7. Available-for-Sale Securities.

X
- Definition Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table. + References No definition available. + Details
Name: | us-gaap_RestructuringCostAndReserveLineItems
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure of costs incurred for restructuring including, but not limited to, exit and disposal activities, remediation, implementation, integration, asset impairment, and charges against earnings from the write-down of assets. + References No definition available. + Details
Name: | us-gaap_RestructuringImpairmentAndOtherActivitiesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Details
Name: | dei_LegalEntityAxis=pseg_PowerMember
Namespace Prefix: |
Data Type: | na
Balance Type: |
Period Type: |