XML 44 R23.htm IDEA: XBRL DOCUMENT v3.25.0.1
Trust Investments
 12 Months Ended
Dec. 31, 2024
Schedule of Trust Investments [Line Items]  
Trust Investments

Note 10. Trust Investments

NDT Fund

In accordance with NRC regulations, entities owning an interest in nuclear generating facilities are required to determine the costs and funding methods necessary to decommission such facilities upon termination of operation. As a general practice, each nuclear owner places funds in independent external trust accounts it maintains to provide for decommissioning. PSEG Power is required to file periodic reports with the NRC demonstrating that its NDT Fund meets the formula-based minimum NRC funding requirements. PSEG Power maintains an external master NDT to fund its share of decommissioning costs for its five nuclear facilities upon their respective termination of operation. The trust contains two separate funds: a qualified fund and a non-qualified fund. Section 468A of the Internal Revenue Code limits the amount of money that can be contributed into a qualified fund. PSEG Power’s share of decommissioning costs related to its five nuclear units was estimated to be between $3.6 billion and $3.8 billion, including contingencies. The liability for decommissioning recorded on a discounted basis as of December 31, 2024 was approximately $1 billion and is included in the ARO. The funds are managed by third-party investment managers who operate under investment guidelines developed by PSEG Power.

The following tables show the fair values and gross unrealized gains and losses for the securities held in the NDT Fund.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of December 31, 2024

 

 

 

 

 

Cost

 

 

Gross
Unrealized
Gains

 

 

Gross
Unrealized
Losses

 

 

Fair
Value

 

 

 

 

 

Millions

 

 

 

Equity Securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Domestic

 

$

508

 

 

$

393

 

 

$

(9

)

 

$

892

 

 

 

International

 

 

419

 

 

 

98

 

 

 

(29

)

 

 

488

 

 

 

Total Equity Securities

 

 

927

 

 

 

491

 

 

 

(38

)

 

 

1,380

 

 

 

Available-for-Sale Debt Securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Government

 

 

853

 

 

 

1

 

 

 

(91

)

 

 

763

 

 

 

Corporate

 

 

531

 

 

 

3

 

 

 

(31

)

 

 

503

 

 

 

Total Available-for-Sale Debt Securities

 

 

1,384

 

 

 

4

 

 

 

(122

)

 

 

1,266

 

 

 

Total NDT Fund Investments (A)

 

$

2,311

 

 

$

495

 

 

$

(160

)

 

$

2,646

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(A)
The NDT Fund Investments table excludes cash and foreign currency of $24 million as of December 31, 2024, which is part of the NDT Fund.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of December 31, 2023

 

 

 

 

 

Cost

 

 

Gross
Unrealized
Gains

 

 

Gross
Unrealized
Losses

 

 

Fair
Value

 

 

 

 

 

Millions

 

 

 

Equity Securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Domestic

 

$

482

 

 

$

300

 

 

$

(2

)

 

$

780

 

 

 

International

 

 

423

 

 

 

118

 

 

 

(11

)

 

 

530

 

 

 

Total Equity Securities

 

 

905

 

 

 

418

 

 

 

(13

)

 

 

1,310

 

 

 

Available-for-Sale Debt Securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Government

 

 

759

 

 

 

4

 

 

 

(72

)

 

 

691

 

 

 

Corporate

 

 

555

 

 

 

6

 

 

 

(39

)

 

 

522

 

 

 

Total Available-for-Sale Debt Securities

 

 

1,314

 

 

 

10

 

 

 

(111

)

 

 

1,213

 

 

 

Total NDT Fund Investments (A)

 

$

2,219

 

 

$

428

 

 

$

(124

)

 

$

2,523

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(A)
The NDT Fund Investments table excludes cash and foreign currency of $1 million as of December 31, 2023, which is part of the NDT Fund.

Net unrealized gains (losses) on debt securities of $(69) million (after-tax) were included in Accumulated Other Comprehensive Loss (AOCL) on PSEG’s Consolidated Balance Sheet as of December 31, 2024. The portion of net unrealized gains (losses) recognized during 2024 related to equity securities still held at the end of December 31, 2024 was $99 million.

The amounts in the preceding tables do not include receivables and payables for NDT Fund transactions which have not settled at the end of each period. Such amounts are included in Accounts Receivable and Accounts Payable on the Consolidated Balance Sheets as shown in the following table.

 

 

 

 

 

 

 

 

 

 

 

 

 

As of December 31,

 

 

 

 

 

2024

 

 

2023

 

 

 

 

 

Millions

 

 

 

Accounts Receivable

 

$

18

 

 

$

19

 

 

 

Accounts Payable

 

$

5

 

 

$

6

 

 

 

 

 

 

 

 

 

 

 

 

The following table shows the value of securities in the NDT Fund that have been in an unrealized loss position for less than and greater than 12 months.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of December 31, 2024

 

 

As of December 31, 2023

 

 

 

 

 

Less Than 12 Months

 

 

Greater Than 12 Months

 

 

Less Than 12 Months

 

 

Greater Than 12 Months

 

 

 

 

 

Fair
Value

 

 

Gross
Unrealized
Losses

 

 

Fair
Value

 

 

Gross
Unrealized
Losses

 

 

Fair
Value

 

 

Gross
Unrealized
Losses

 

 

Fair
Value

 

 

Gross
Unrealized
Losses

 

 

 

 

 

Millions

 

 

 

Equity Securities (A)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Domestic

 

$

73

 

 

$

(8

)

 

$

4

 

 

$

(1

)

 

$

44

 

 

$

(1

)

 

$

4

 

 

$

—

 

 

 

International

 

 

126

 

 

 

(19

)

 

 

22

 

 

 

(10

)

 

 

35

 

 

 

(4

)

 

 

28

 

 

 

(8

)

 

 

Total Equity Securities

 

 

199

 

 

 

(27

)

 

 

26

 

 

 

(11

)

 

 

79

 

 

 

(5

)

 

 

32

 

 

 

(8

)

 

 

Available-for-Sale Debt Securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Government (B)

 

 

295

 

 

 

(7

)

 

 

382

 

 

 

(84

)

 

 

90

 

 

 

(1

)

 

 

432

 

 

 

(71

)

 

 

Corporate (C)

 

 

119

 

 

 

(2

)

 

 

227

 

 

 

(29

)

 

 

19

 

 

 

—

 

 

 

329

 

 

 

(39

)

 

 

Total Available-for-Sale Debt Securities

 

 

414

 

 

 

(9

)

 

 

609

 

 

 

(113

)

 

 

109

 

 

 

(1

)

 

 

761

 

 

 

(110

)

 

 

NDT Trust Investments

 

$

613

 

 

$

(36

)

 

$

635

 

 

$

(124

)

 

$

188

 

 

$

(6

)

 

$

793

 

 

$

(118

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(A)
Equity Securities—Investments in marketable equity securities within the NDT Fund are primarily in common stocks within a broad range of industries and sectors. Unrealized gains and losses on these securities are recorded in Net Income.
(B)
Debt Securities (Government)—Unrealized gains and losses on these securities are recorded in Accumulated Other Comprehensive Income (Loss). The unrealized losses on PSEG Power’s NDT investments in U.S. Treasury obligations and Federal Agency mortgage-backed securities were caused by interest rate changes. PSEG Power also has investments in municipal bonds. It is not expected that these securities will settle for less than their amortized cost. PSEG Power does not intend to sell these securities nor will it be more-likely-than-not required to sell before recovery of their amortized cost. PSEG Power did not recognize credit losses for U.S. Treasury obligations and Federal Agency mortgage-backed securities because these investments are guaranteed by the U.S. government or an agency of the U.S. government. PSEG Power did not recognize credit losses for municipal bonds because they are primarily investment grade securities.
(C)
Debt Securities (Corporate)—Unrealized gains and losses on these securities are recorded in Accumulated Other Comprehensive Income (Loss). Unrealized losses were due to market declines. It is not expected that these securities would settle for less than their amortized cost. PSEG Power does not intend to sell these securities nor will it be more-likely-than-not required to sell before recovery of their amortized cost. PSEG Power did not recognize credit losses for corporate bonds because they are primarily investment grade securities.

The proceeds from the sales of and the net gains (losses) on securities in the NDT Fund were:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Years Ended December 31,

 

 

 

 

 

2024

 

 

2023

 

 

2022

 

 

 

 

 

Millions

 

 

 

Proceeds from Sales (A)

 

$

1,504

 

 

$

1,685

 

 

$

1,521

 

 

 

Net Realized Gains (Losses):

 

 

 

 

 

 

 

 

 

 

 

Gross Realized Gains

 

$

132

 

 

$

142

 

 

$

86

 

 

 

Gross Realized Losses

 

 

(54

)

 

 

(100

)

 

 

(136

)

 

 

Net Realized Gains (Losses) on NDT Fund (B)

 

 

78

 

 

 

42

 

 

 

(50

)

 

 

Net Unrealized Gains (Losses) on Equity Securities

 

 

47

 

 

 

146

 

 

 

(205

)

 

 

Net Gains (Losses) on NDT Fund Investments

 

$

125

 

 

$

188

 

 

$

(255

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(A)
Includes activity in accounts related to the liquidation of funds being transitioned within the trust.
(B)
The cost of these securities was determined on the basis of specific identification.

The NDT Fund debt securities held as of December 31, 2024 had the following maturities:

 

 

 

 

 

 

 

 

Time Frame

 

Fair Value

 

 

 

 

 

Millions

 

 

 

Less than one year

 

$

17

 

 

 

1 - 5 years

 

 

358

 

 

 

6 - 10 years

 

 

215

 

 

 

11 - 15 years

 

 

64

 

 

 

16 - 20 years

 

 

109

 

 

 

Over 20 years

 

 

503

 

 

 

Total NDT Available-for-Sale Debt Securities

 

$

1,266

 

 

 

 

 

 

 

 

 

PSEG Power periodically assesses individual debt securities whose fair value is less than amortized cost to determine whether the investments are impaired. For these securities, management considers its intent to sell or requirement to sell a security prior to expected recovery. In those cases where a sale is expected, any impairment would be recorded through earnings. For fixed income securities where there is no intent to sell or likely requirement to sell, management evaluates whether credit loss is a component of the impairment. If so, that portion is recorded through earnings while the noncredit loss component is recorded through Accumulated Other Comprehensive Income (Loss). Any subsequent recoveries of the noncredit loss component of the impairment would be recorded through Accumulated Other Comprehensive Income (Loss). Any subsequent recoveries of the credit loss component would be recognized through earnings. The assessment of fair market value compared to cost is applied on a weighted average basis taking into account various purchase dates and initial cost of the securities.

Rabbi Trust

PSEG maintains certain unfunded nonqualified benefit plans to provide supplemental retirement and deferred compensation benefits to certain key employees. Certain assets related to these plans have been set aside in a grantor trust commonly known as a “Rabbi Trust.”

The following tables show the fair values, gross unrealized gains and losses and amortized cost basis for the securities held in the Rabbi Trust.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of December 31, 2024

 

 

 

 

 

Cost

 

 

Gross
Unrealized
Gains

 

 

Gross
Unrealized
Losses

 

 

Fair
Value

 

 

 

 

 

Millions

 

 

 

Domestic Equity Securities

 

$

8

 

 

$

9

 

 

$

—

 

 

$

17

 

 

 

Available-for-Sale Debt Securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Government

 

 

105

 

 

 

—

 

 

 

(22

)

 

 

83

 

 

 

Corporate

 

 

76

 

 

 

—

 

 

 

(11

)

 

 

65

 

 

 

Total Available-for-Sale Debt Securities

 

 

181

 

 

 

—

 

 

 

(33

)

 

 

148

 

 

 

Total Rabbi Trust Investments

 

$

189

 

 

$

9

 

 

$

(33

)

 

$

165

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of December 31, 2023

 

 

 

 

 

Cost

 

 

Gross
Unrealized
Gains

 

 

Gross
Unrealized
Losses

 

 

Fair
Value

 

 

 

 

 

Millions

 

 

 

Domestic Equity Securities

 

$

10

 

 

$

8

 

 

$

—

 

 

$

18

 

 

 

Available-for-Sale Debt Securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Government

 

 

110

 

 

 

—

 

 

 

(19

)

 

 

91

 

 

 

Corporate

 

 

80

 

 

 

—

 

 

 

(10

)

 

 

70

 

 

 

Total Available-for-Sale Debt Securities

 

 

190

 

 

 

—

 

 

 

(29

)

 

 

161

 

 

 

Total Rabbi Trust Investments

 

$

200

 

 

$

8

 

 

$

(29

)

 

$

179

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net unrealized gains (losses) on debt securities of $(24) million (after-tax) were included in AOCL on PSEG’s Consolidated Balance Sheet as of December 31, 2024. The portion of net unrealized gains (losses) recognized during 2024 related to equity securities still held at the end of December 31, 2024 was approximately $1 million.

The amounts in the preceding tables do not include receivables and payables for Rabbi Trust Fund transactions which have not settled at the end of each period. Such amounts are included in Accounts Receivable and Accounts Payable on the Consolidated Balance Sheets as shown in the following table.

 

 

 

 

 

 

 

 

 

 

 

 

 

As of December 31,

 

 

 

 

 

2024

 

 

2023

 

 

 

 

 

Millions

 

 

 

Accounts Receivable

 

$

1

 

 

$

1

 

 

 

Accounts Payable

 

$

—

 

 

$

—

 

 

 

 

 

 

 

 

 

 

 

 

The following table shows the value of securities in the Rabbi Trust Fund that have been in an unrealized loss position for less than and greater than 12 months:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of December 31, 2024

 

 

As of December 31, 2023

 

 

 

 

 

Less Than 12 Months

 

 

Greater Than 12 Months

 

 

Less Than 12 Months

 

 

Greater Than 12 Months

 

 

 

 

 

Fair
Value

 

 

Gross
Unrealized
Losses

 

 

Fair
Value

 

 

Gross
Unrealized
Losses

 

 

Fair
Value

 

 

Gross
Unrealized
Losses

 

 

Fair
Value

 

 

Gross
Unrealized
Losses

 

 

 

 

 

Millions

 

 

 

Available-for-Sale Debt Securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Government (A)

 

$

10

 

 

$

—

 

 

$

71

 

 

$

(22

)

 

$

3

 

 

$

—

 

 

$

83

 

 

$

(19

)

 

 

Corporate (B)

 

 

11

 

 

 

—

 

 

 

49

 

 

 

(11

)

 

 

3

 

 

 

—

 

 

 

60

 

 

 

(10

)

 

 

Total Available-for-Sale Debt Securities

 

 

21

 

 

 

—

 

 

 

120

 

 

 

(33

)

 

 

6

 

 

 

—

 

 

 

143

 

 

 

(29

)

 

 

Rabbi Trust Investments

 

$

21

 

 

$

—

 

 

$

120

 

 

$

(33

)

 

$

6

 

 

$

—

 

 

$

143

 

 

$

(29

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(A)
Debt Securities (Government)—Unrealized gains and losses on these securities are recorded in Accumulated Other Comprehensive Income (Loss). The unrealized losses on PSEG’s Rabbi Trust investments in U.S. Treasury obligations and Federal Agency mortgage-backed securities were caused by interest rate changes. PSEG also has investments in municipal bonds. It is not expected that these securities will settle for less than their amortized cost. PSEG does not intend to sell these securities nor will it be more-likely-than-not required to sell before recovery of their amortized cost. PSEG did not recognize credit losses for U.S. Treasury obligations and Federal Agency mortgage-backed securities because these investments are guaranteed by the U.S. government or an agency of the U.S. government. PSEG did not recognize credit losses for municipal bonds because they are primarily investment grade securities.
(B)
Debt Securities (Corporate)—Unrealized gains and losses on these securities are recorded in Accumulated Other Comprehensive Income (Loss). Unrealized losses were due to market declines. It is not expected that these securities would settle for less than their amortized cost. PSEG does not intend to sell these securities nor will it be more-likely-than-not required to sell before recovery of their amortized cost. PSEG did not recognize credit losses for corporate bonds because they are primarily investment grade.

The proceeds from the sales of and the net gains (losses) on securities in the Rabbi Trust Fund were:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Years Ended December 31,

 

 

 

 

 

2024

 

 

2023

 

 

2022

 

 

 

 

 

Millions

 

 

 

Proceeds from Rabbi Trust Sales

 

$

33

 

 

$

29

 

 

$

65

 

 

 

Net Realized Gains (Losses):

 

 

 

 

 

 

 

 

 

 

 

Gross Realized Gains

 

$

3

 

 

$

5

 

 

$

5

 

 

 

Gross Realized Losses

 

 

(2

)

 

 

(6

)

 

 

(9

)

 

 

Net Realized Gains (Losses) on Rabbi Trust (A)

 

 

1

 

 

 

(1

)

 

 

(4

)

 

 

Net Unrealized Gains (Losses) on Equity Securities

 

 

1

 

 

 

2

 

 

 

(6

)

 

 

Net Gains (Losses) on Rabbi Trust Investments

 

$

2

 

 

$

1

 

 

$

(10

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(A)
The cost of these securities was determined on the basis of specific identification.

The Rabbi Trust debt securities held as of December 31, 2024 had the following maturities:

 

 

 

 

 

 

 

 

Time Frame

 

Fair Value

 

 

 

 

 

Millions

 

 

 

Less than one year

 

$

4

 

 

 

1 - 5 years

 

 

30

 

 

 

6 - 10 years

 

 

16

 

 

 

11 - 15 years

 

 

10

 

 

 

16 - 20 years

 

 

15

 

 

 

Over 20 years

 

 

73

 

 

 

Total Rabbi Trust Available-for-Sale Debt Securities

 

$

148

 

 

 

 

 

 

 

 

 

PSEG periodically assesses individual debt securities whose fair value is less than amortized cost to determine whether the investments are considered to be impaired. For these securities, management considers its intent to sell or requirement to sell a security prior to expected recovery. In those cases where a sale is expected, any impairment would be recorded through earnings. For fixed income securities where there is no intent to sell or likely requirement to sell, management evaluates whether credit loss is a component of the impairment. If so, that portion is recorded through earnings while the noncredit loss component is recorded through Accumulated Other Comprehensive Income (Loss). Any subsequent recoveries of the noncredit loss component of the impairment would be recorded through Accumulated Other Comprehensive Income (Loss). Any subsequent recoveries of the credit loss component would be recognized through earnings. The assessment of fair market value compared to cost is applied on a weighted average basis taking into account various purchase dates and initial cost of the securities.

The fair value of the Rabbi Trust related to PSEG and PSE&G are detailed as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

As of December 31,

 

 

As of December 31,

 

 

 

 

 

2024

 

 

2023

 

 

 

 

 

Millions

 

 

 

PSE&G

 

$

30

 

 

$

32

 

 

 

PSEG Power & Other

 

 

135

 

 

 

147

 

 

 

Total Rabbi Trust Investments

 

$

165

 

 

$

179

 

 

 

 

 

 

 

 

 

 

 
Public Service Electric and Gas Company [Member]  
Schedule of Trust Investments [Line Items]  
Trust Investments

Note 10. Trust Investments

NDT Fund

In accordance with NRC regulations, entities owning an interest in nuclear generating facilities are required to determine the costs and funding methods necessary to decommission such facilities upon termination of operation. As a general practice, each nuclear owner places funds in independent external trust accounts it maintains to provide for decommissioning. PSEG Power is required to file periodic reports with the NRC demonstrating that its NDT Fund meets the formula-based minimum NRC funding requirements. PSEG Power maintains an external master NDT to fund its share of decommissioning costs for its five nuclear facilities upon their respective termination of operation. The trust contains two separate funds: a qualified fund and a non-qualified fund. Section 468A of the Internal Revenue Code limits the amount of money that can be contributed into a qualified fund. PSEG Power’s share of decommissioning costs related to its five nuclear units was estimated to be between $3.6 billion and $3.8 billion, including contingencies. The liability for decommissioning recorded on a discounted basis as of December 31, 2024 was approximately $1 billion and is included in the ARO. The funds are managed by third-party investment managers who operate under investment guidelines developed by PSEG Power.

The following tables show the fair values and gross unrealized gains and losses for the securities held in the NDT Fund.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of December 31, 2024

 

 

 

 

 

Cost

 

 

Gross
Unrealized
Gains

 

 

Gross
Unrealized
Losses

 

 

Fair
Value

 

 

 

 

 

Millions

 

 

 

Equity Securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Domestic

 

$

508

 

 

$

393

 

 

$

(9

)

 

$

892

 

 

 

International

 

 

419

 

 

 

98

 

 

 

(29

)

 

 

488

 

 

 

Total Equity Securities

 

 

927

 

 

 

491

 

 

 

(38

)

 

 

1,380

 

 

 

Available-for-Sale Debt Securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Government

 

 

853

 

 

 

1

 

 

 

(91

)

 

 

763

 

 

 

Corporate

 

 

531

 

 

 

3

 

 

 

(31

)

 

 

503

 

 

 

Total Available-for-Sale Debt Securities

 

 

1,384

 

 

 

4

 

 

 

(122

)

 

 

1,266

 

 

 

Total NDT Fund Investments (A)

 

$

2,311

 

 

$

495

 

 

$

(160

)

 

$

2,646

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(A)
The NDT Fund Investments table excludes cash and foreign currency of $24 million as of December 31, 2024, which is part of the NDT Fund.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of December 31, 2023

 

 

 

 

 

Cost

 

 

Gross
Unrealized
Gains

 

 

Gross
Unrealized
Losses

 

 

Fair
Value

 

 

 

 

 

Millions

 

 

 

Equity Securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Domestic

 

$

482

 

 

$

300

 

 

$

(2

)

 

$

780

 

 

 

International

 

 

423

 

 

 

118

 

 

 

(11

)

 

 

530

 

 

 

Total Equity Securities

 

 

905

 

 

 

418

 

 

 

(13

)

 

 

1,310

 

 

 

Available-for-Sale Debt Securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Government

 

 

759

 

 

 

4

 

 

 

(72

)

 

 

691

 

 

 

Corporate

 

 

555

 

 

 

6

 

 

 

(39

)

 

 

522

 

 

 

Total Available-for-Sale Debt Securities

 

 

1,314

 

 

 

10

 

 

 

(111

)

 

 

1,213

 

 

 

Total NDT Fund Investments (A)

 

$

2,219

 

 

$

428

 

 

$

(124

)

 

$

2,523

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(A)
The NDT Fund Investments table excludes cash and foreign currency of $1 million as of December 31, 2023, which is part of the NDT Fund.

Net unrealized gains (losses) on debt securities of $(69) million (after-tax) were included in Accumulated Other Comprehensive Loss (AOCL) on PSEG’s Consolidated Balance Sheet as of December 31, 2024. The portion of net unrealized gains (losses) recognized during 2024 related to equity securities still held at the end of December 31, 2024 was $99 million.

The amounts in the preceding tables do not include receivables and payables for NDT Fund transactions which have not settled at the end of each period. Such amounts are included in Accounts Receivable and Accounts Payable on the Consolidated Balance Sheets as shown in the following table.

 

 

 

 

 

 

 

 

 

 

 

 

 

As of December 31,

 

 

 

 

 

2024

 

 

2023

 

 

 

 

 

Millions

 

 

 

Accounts Receivable

 

$

18

 

 

$

19

 

 

 

Accounts Payable

 

$

5

 

 

$

6

 

 

 

 

 

 

 

 

 

 

 

 

The following table shows the value of securities in the NDT Fund that have been in an unrealized loss position for less than and greater than 12 months.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of December 31, 2024

 

 

As of December 31, 2023

 

 

 

 

 

Less Than 12 Months

 

 

Greater Than 12 Months

 

 

Less Than 12 Months

 

 

Greater Than 12 Months

 

 

 

 

 

Fair
Value

 

 

Gross
Unrealized
Losses

 

 

Fair
Value

 

 

Gross
Unrealized
Losses

 

 

Fair
Value

 

 

Gross
Unrealized
Losses

 

 

Fair
Value

 

 

Gross
Unrealized
Losses

 

 

 

 

 

Millions

 

 

 

Equity Securities (A)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Domestic

 

$

73

 

 

$

(8

)

 

$

4

 

 

$

(1

)

 

$

44

 

 

$

(1

)

 

$

4

 

 

$

—

 

 

 

International

 

 

126

 

 

 

(19

)

 

 

22

 

 

 

(10

)

 

 

35

 

 

 

(4

)

 

 

28

 

 

 

(8

)

 

 

Total Equity Securities

 

 

199

 

 

 

(27

)

 

 

26

 

 

 

(11

)

 

 

79

 

 

 

(5

)

 

 

32

 

 

 

(8

)

 

 

Available-for-Sale Debt Securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Government (B)

 

 

295

 

 

 

(7

)

 

 

382

 

 

 

(84

)

 

 

90

 

 

 

(1

)

 

 

432

 

 

 

(71

)

 

 

Corporate (C)

 

 

119

 

 

 

(2

)

 

 

227

 

 

 

(29

)

 

 

19

 

 

 

—

 

 

 

329

 

 

 

(39

)

 

 

Total Available-for-Sale Debt Securities

 

 

414

 

 

 

(9

)

 

 

609

 

 

 

(113

)

 

 

109

 

 

 

(1

)

 

 

761

 

 

 

(110

)

 

 

NDT Trust Investments

 

$

613

 

 

$

(36

)

 

$

635

 

 

$

(124

)

 

$

188

 

 

$

(6

)

 

$

793

 

 

$

(118

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(A)
Equity Securities—Investments in marketable equity securities within the NDT Fund are primarily in common stocks within a broad range of industries and sectors. Unrealized gains and losses on these securities are recorded in Net Income.
(B)
Debt Securities (Government)—Unrealized gains and losses on these securities are recorded in Accumulated Other Comprehensive Income (Loss). The unrealized losses on PSEG Power’s NDT investments in U.S. Treasury obligations and Federal Agency mortgage-backed securities were caused by interest rate changes. PSEG Power also has investments in municipal bonds. It is not expected that these securities will settle for less than their amortized cost. PSEG Power does not intend to sell these securities nor will it be more-likely-than-not required to sell before recovery of their amortized cost. PSEG Power did not recognize credit losses for U.S. Treasury obligations and Federal Agency mortgage-backed securities because these investments are guaranteed by the U.S. government or an agency of the U.S. government. PSEG Power did not recognize credit losses for municipal bonds because they are primarily investment grade securities.
(C)
Debt Securities (Corporate)—Unrealized gains and losses on these securities are recorded in Accumulated Other Comprehensive Income (Loss). Unrealized losses were due to market declines. It is not expected that these securities would settle for less than their amortized cost. PSEG Power does not intend to sell these securities nor will it be more-likely-than-not required to sell before recovery of their amortized cost. PSEG Power did not recognize credit losses for corporate bonds because they are primarily investment grade securities.

The proceeds from the sales of and the net gains (losses) on securities in the NDT Fund were:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Years Ended December 31,

 

 

 

 

 

2024

 

 

2023

 

 

2022

 

 

 

 

 

Millions

 

 

 

Proceeds from Sales (A)

 

$

1,504

 

 

$

1,685

 

 

$

1,521

 

 

 

Net Realized Gains (Losses):

 

 

 

 

 

 

 

 

 

 

 

Gross Realized Gains

 

$

132

 

 

$

142

 

 

$

86

 

 

 

Gross Realized Losses

 

 

(54

)

 

 

(100

)

 

 

(136

)

 

 

Net Realized Gains (Losses) on NDT Fund (B)

 

 

78

 

 

 

42

 

 

 

(50

)

 

 

Net Unrealized Gains (Losses) on Equity Securities

 

 

47

 

 

 

146

 

 

 

(205

)

 

 

Net Gains (Losses) on NDT Fund Investments

 

$

125

 

 

$

188

 

 

$

(255

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(A)
Includes activity in accounts related to the liquidation of funds being transitioned within the trust.
(B)
The cost of these securities was determined on the basis of specific identification.

The NDT Fund debt securities held as of December 31, 2024 had the following maturities:

 

 

 

 

 

 

 

 

Time Frame

 

Fair Value

 

 

 

 

 

Millions

 

 

 

Less than one year

 

$

17

 

 

 

1 - 5 years

 

 

358

 

 

 

6 - 10 years

 

 

215

 

 

 

11 - 15 years

 

 

64

 

 

 

16 - 20 years

 

 

109

 

 

 

Over 20 years

 

 

503

 

 

 

Total NDT Available-for-Sale Debt Securities

 

$

1,266

 

 

 

 

 

 

 

 

 

PSEG Power periodically assesses individual debt securities whose fair value is less than amortized cost to determine whether the investments are impaired. For these securities, management considers its intent to sell or requirement to sell a security prior to expected recovery. In those cases where a sale is expected, any impairment would be recorded through earnings. For fixed income securities where there is no intent to sell or likely requirement to sell, management evaluates whether credit loss is a component of the impairment. If so, that portion is recorded through earnings while the noncredit loss component is recorded through Accumulated Other Comprehensive Income (Loss). Any subsequent recoveries of the noncredit loss component of the impairment would be recorded through Accumulated Other Comprehensive Income (Loss). Any subsequent recoveries of the credit loss component would be recognized through earnings. The assessment of fair market value compared to cost is applied on a weighted average basis taking into account various purchase dates and initial cost of the securities.

Rabbi Trust

PSEG maintains certain unfunded nonqualified benefit plans to provide supplemental retirement and deferred compensation benefits to certain key employees. Certain assets related to these plans have been set aside in a grantor trust commonly known as a “Rabbi Trust.”

The following tables show the fair values, gross unrealized gains and losses and amortized cost basis for the securities held in the Rabbi Trust.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of December 31, 2024

 

 

 

 

 

Cost

 

 

Gross
Unrealized
Gains

 

 

Gross
Unrealized
Losses

 

 

Fair
Value

 

 

 

 

 

Millions

 

 

 

Domestic Equity Securities

 

$

8

 

 

$

9

 

 

$

—

 

 

$

17

 

 

 

Available-for-Sale Debt Securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Government

 

 

105

 

 

 

—

 

 

 

(22

)

 

 

83

 

 

 

Corporate

 

 

76

 

 

 

—

 

 

 

(11

)

 

 

65

 

 

 

Total Available-for-Sale Debt Securities

 

 

181

 

 

 

—

 

 

 

(33

)

 

 

148

 

 

 

Total Rabbi Trust Investments

 

$

189

 

 

$

9

 

 

$

(33

)

 

$

165

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of December 31, 2023

 

 

 

 

 

Cost

 

 

Gross
Unrealized
Gains

 

 

Gross
Unrealized
Losses

 

 

Fair
Value

 

 

 

 

 

Millions

 

 

 

Domestic Equity Securities

 

$

10

 

 

$

8

 

 

$

—

 

 

$

18

 

 

 

Available-for-Sale Debt Securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Government

 

 

110

 

 

 

—

 

 

 

(19

)

 

 

91

 

 

 

Corporate

 

 

80

 

 

 

—

 

 

 

(10

)

 

 

70

 

 

 

Total Available-for-Sale Debt Securities

 

 

190

 

 

 

—

 

 

 

(29

)

 

 

161

 

 

 

Total Rabbi Trust Investments

 

$

200

 

 

$

8

 

 

$

(29

)

 

$

179

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net unrealized gains (losses) on debt securities of $(24) million (after-tax) were included in AOCL on PSEG’s Consolidated Balance Sheet as of December 31, 2024. The portion of net unrealized gains (losses) recognized during 2024 related to equity securities still held at the end of December 31, 2024 was approximately $1 million.

The amounts in the preceding tables do not include receivables and payables for Rabbi Trust Fund transactions which have not settled at the end of each period. Such amounts are included in Accounts Receivable and Accounts Payable on the Consolidated Balance Sheets as shown in the following table.

 

 

 

 

 

 

 

 

 

 

 

 

 

As of December 31,

 

 

 

 

 

2024

 

 

2023

 

 

 

 

 

Millions

 

 

 

Accounts Receivable

 

$

1

 

 

$

1

 

 

 

Accounts Payable

 

$

—

 

 

$

—

 

 

 

 

 

 

 

 

 

 

 

 

The following table shows the value of securities in the Rabbi Trust Fund that have been in an unrealized loss position for less than and greater than 12 months:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of December 31, 2024

 

 

As of December 31, 2023

 

 

 

 

 

Less Than 12 Months

 

 

Greater Than 12 Months

 

 

Less Than 12 Months

 

 

Greater Than 12 Months

 

 

 

 

 

Fair
Value

 

 

Gross
Unrealized
Losses

 

 

Fair
Value

 

 

Gross
Unrealized
Losses

 

 

Fair
Value

 

 

Gross
Unrealized
Losses

 

 

Fair
Value

 

 

Gross
Unrealized
Losses

 

 

 

 

 

Millions

 

 

 

Available-for-Sale Debt Securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Government (A)

 

$

10

 

 

$

—

 

 

$

71

 

 

$

(22

)

 

$

3

 

 

$

—

 

 

$

83

 

 

$

(19

)

 

 

Corporate (B)

 

 

11

 

 

 

—

 

 

 

49

 

 

 

(11

)

 

 

3

 

 

 

—

 

 

 

60

 

 

 

(10

)

 

 

Total Available-for-Sale Debt Securities

 

 

21

 

 

 

—

 

 

 

120

 

 

 

(33

)

 

 

6

 

 

 

—

 

 

 

143

 

 

 

(29

)

 

 

Rabbi Trust Investments

 

$

21

 

 

$

—

 

 

$

120

 

 

$

(33

)

 

$

6

 

 

$

—

 

 

$

143

 

 

$

(29

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(A)
Debt Securities (Government)—Unrealized gains and losses on these securities are recorded in Accumulated Other Comprehensive Income (Loss). The unrealized losses on PSEG’s Rabbi Trust investments in U.S. Treasury obligations and Federal Agency mortgage-backed securities were caused by interest rate changes. PSEG also has investments in municipal bonds. It is not expected that these securities will settle for less than their amortized cost. PSEG does not intend to sell these securities nor will it be more-likely-than-not required to sell before recovery of their amortized cost. PSEG did not recognize credit losses for U.S. Treasury obligations and Federal Agency mortgage-backed securities because these investments are guaranteed by the U.S. government or an agency of the U.S. government. PSEG did not recognize credit losses for municipal bonds because they are primarily investment grade securities.
(B)
Debt Securities (Corporate)—Unrealized gains and losses on these securities are recorded in Accumulated Other Comprehensive Income (Loss). Unrealized losses were due to market declines. It is not expected that these securities would settle for less than their amortized cost. PSEG does not intend to sell these securities nor will it be more-likely-than-not required to sell before recovery of their amortized cost. PSEG did not recognize credit losses for corporate bonds because they are primarily investment grade.

The proceeds from the sales of and the net gains (losses) on securities in the Rabbi Trust Fund were:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Years Ended December 31,

 

 

 

 

 

2024

 

 

2023

 

 

2022

 

 

 

 

 

Millions

 

 

 

Proceeds from Rabbi Trust Sales

 

$

33

 

 

$

29

 

 

$

65

 

 

 

Net Realized Gains (Losses):

 

 

 

 

 

 

 

 

 

 

 

Gross Realized Gains

 

$

3

 

 

$

5

 

 

$

5

 

 

 

Gross Realized Losses

 

 

(2

)

 

 

(6

)

 

 

(9

)

 

 

Net Realized Gains (Losses) on Rabbi Trust (A)

 

 

1

 

 

 

(1

)

 

 

(4

)

 

 

Net Unrealized Gains (Losses) on Equity Securities

 

 

1

 

 

 

2

 

 

 

(6

)

 

 

Net Gains (Losses) on Rabbi Trust Investments

 

$

2

 

 

$

1

 

 

$

(10

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(A)
The cost of these securities was determined on the basis of specific identification.

The Rabbi Trust debt securities held as of December 31, 2024 had the following maturities:

 

 

 

 

 

 

 

 

Time Frame

 

Fair Value

 

 

 

 

 

Millions

 

 

 

Less than one year

 

$

4

 

 

 

1 - 5 years

 

 

30

 

 

 

6 - 10 years

 

 

16

 

 

 

11 - 15 years

 

 

10

 

 

 

16 - 20 years

 

 

15

 

 

 

Over 20 years

 

 

73

 

 

 

Total Rabbi Trust Available-for-Sale Debt Securities

 

$

148

 

 

 

 

 

 

 

 

 

PSEG periodically assesses individual debt securities whose fair value is less than amortized cost to determine whether the investments are considered to be impaired. For these securities, management considers its intent to sell or requirement to sell a security prior to expected recovery. In those cases where a sale is expected, any impairment would be recorded through earnings. For fixed income securities where there is no intent to sell or likely requirement to sell, management evaluates whether credit loss is a component of the impairment. If so, that portion is recorded through earnings while the noncredit loss component is recorded through Accumulated Other Comprehensive Income (Loss). Any subsequent recoveries of the noncredit loss component of the impairment would be recorded through Accumulated Other Comprehensive Income (Loss). Any subsequent recoveries of the credit loss component would be recognized through earnings. The assessment of fair market value compared to cost is applied on a weighted average basis taking into account various purchase dates and initial cost of the securities.

The fair value of the Rabbi Trust related to PSEG and PSE&G are detailed as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

As of December 31,

 

 

As of December 31,

 

 

 

 

 

2024

 

 

2023

 

 

 

 

 

Millions

 

 

 

PSE&G

 

$

30

 

 

$

32

 

 

 

PSEG Power & Other

 

 

135

 

 

 

147

 

 

 

Total Rabbi Trust Investments

 

$

165

 

 

$

179