Financial Risk Management Activities (Tables)

6 Months Ended

Jun. 30, 2011

Financial Risk Management Activities

Schedule Of Derivative Transactions Designated And Effective As Cash Flow Hedges

	As of June 30, 2011		As of December 31, 2010
	Millions
Fair Value of Cash Flow Hedges	$	101	$	196
Impact on Accumulated Other Comprehensive Income (Loss) (after tax)	$	57	$	114

Schedule Of Derivative Instruments Fair Value In Balance Sheet

	As of June 30, 2011
	Power												PSE&G			PSEG		Consolidated
	Cash Flow Hedges			Non Hedges			Netting (A)			Total Power			Non Hedges			Fair Value Hedges
Balance Sheet Location	Energy- Related Contracts			Energy- Related Contracts									Energy- Related Contracts			Interest Rate Swaps		Total Derivatives
	Millions
Derivative Contracts
Current Assets	$	103		$	294		$	(282	)	$	115		$	0		$	20	$	135
Noncurrent Assets		6			44			(24	)	$	26			10			27	$	63
Total Mark-to-Market Derivative Assets	$	109		$	338		$	(306	)	$	141		$	10		$	47	$	198
Derivative Contracts
Current Liabilities	$	(5	)	$	(334	)	$	281		$	(58	)	$	(9	)	$	0	$	(67	)
Noncurrent Liabilities		(3	)		(41	)		23		$	(21	)		0			0	$	(21	)
Total Mark-to-Market Derivative (Liabilities)	$	(8	)	$	(375	)	$	304		$	(79	)	$	(9	)	$	0	$	(88	)
Total Net Mark-to-Market Derivative Assets (Liabilities)	$	101		$	(37	)	$	(2	)	$	62		$	1		$	47	$	110

	As of December 31, 2010
	Power												PSE&G			PSEG		Consolidated
	Cash Flow Hedges			Non Hedges			Netting (A)			Total Power			Non Hedges			Fair Value Hedges
Balance Sheet Location	Energy- Related Contracts			Energy- Related Contracts									Energy- Related Contracts			Interest Rate Swaps		Total Derivatives
	Millions
Derivative Contracts
Current Assets	$	204		$	403		$	(444	)	$	163		$	0		$	19	$	182
Noncurrent Assets	$	3		$	80		$	(41	)	$	42		$	17		$	20	$	79
Total Mark-to-Market Derivative Assets	$	207		$	483		$	(485	)	$	205		$	17		$	39	$	261
Derivative Contracts
Current Liabilities	$	(11	)	$	(454	)	$	374		$	(91	)	$	(12	)	$	0	$	(103	)
Noncurrent Liabilities	$	0		$	(72	)	$	50		$	(22	)	$	0		$	0	$	(22	)
Total Mark-to-Market Derivative (Liabilities)	$	(11	)	$	(526	)	$	424		$	(113	)	$	(12	)	$	0	$	(125	)
Total Net Mark-to-Market Derivative Assets (Liabilities)	$	196		$	(43	)	$	(61	)	$	92		$	5		$	39	$	136

(A) Represents the netting of fair value balances with the same counterparty and the application of collateral. As of June 30, 2011 and December 31, 2010, net cash collateral received of $2 million and $61 million, respectively, was netted against the corresponding net derivative contract positions. Of the $2 million as of June 30, 2011, cash collateral of $(1) million and $(1) million were netted against current assets and noncurrent assets, respectively. Of the $61 million as of December 31, 2010, cash collateral of $(132) million and $(3) million were netted against current assets and noncurrent assets, respectively, and cash collateral of $62 million and $12 million were netted against current liabilities and noncurrent liabilities, respectively.

Schedule Of Derivative Instruments Designated As Cash Flow Hedges

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 June 30,							Three Months Ended June  30,							Three Months Ended June 30,
	2011			2010				2011			2010				2011		2010
	Millions
PSEG (A)
Energy-Related Contracts	$	(16	)	$	(99	)	Operating Revenues	$	26		$	42		Operating Revenues	$	3	$	(1	)
Energy-Related Contracts		(1	)		3		Energy Costs		(1	)		(1	)			0		0
Interest Rate Swaps		0			0		Interest Expense		(1	)		(1	)			0		0
Total PSEG	$	(17	)	$	(96	)		$	24		$	40			$	3	$	(1	)
Power
Energy-Related Contracts	$	(16	)	$	(99	)	Operating Revenues	$	26		$	42		Operating Revenues	$	3	$	(1	)
Energy-Related Contracts		(1	)		3		Energy Costs		(1	)		(1	)			0		0
Total Power	$	(17	)	$	(96	)		$	25		$	41			$	3	$	(1	)

The following shows the effect on the Condensed Consolidated Statements of Operations and on AOCI of derivative instruments designated as cash flow hedges for the six months ended June 30, 2011 and 2010:

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)
	Six Months Ended June 30,						Six Months Ended June 30,							Six Months Ended June 30,
	2011			2010			2011			2010				2011		2010
	Millions
PSEG (A)
Energy-Related Contracts	$	(3	)	$	109	Operating Revenues	$	92		$	118		Operating Revenues	$	1	$	(3	)
Energy-Related Contracts		1			1	Energy Costs		2			(2	)			0		0
Interest Rate Swaps		0			0	Interest Expense		(1	)		(1	)			0		0
Total PSEG	$	(2	)	$	110		$	93		$	115			$	1	$	(3	)
Power
Energy-Related Contracts	$	(3	)	$	109	Operating Revenues	$	92		$	118		Operating Revenues	$	1	$	(3	)
Energy-Related Contracts		1			1	Energy Costs		2			(2	)			0		0
Total Power	$	(2	)	$	110		$	94		$	116			$	1	$	(3	)

(A) Includes amounts for PSEG parent.

Schedule Of Reconciliation For Derivative Activity Included In Accumulated Other Comprehensive Loss

Accumulated Other Comprehensive Income	Pre-Tax			After-Tax
	Millions
Balance as of December 31, 2010	$	188		$	111
Gain Recognized in AOCI (Effective Portion)		15			9
Less: Gain Reclassified into Income (Effective Portion)		(69	)		(41	)
Balance as of March 31, 2011	$	134		$	79
Loss Recognized in AOCI (Effective Portion)		(17	)		(10	)
Less: Gain Reclassified into Income (Effective Portion)		(24	)		(15	)
Balance as of June 30, 2011	$	93		$	54

Schedule Of Derivative Instruments Not Designated As Hedging Instruments And Impact On Results Of Operations

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 June 30,						Six Months  Ended June 30,
		2011			2010			2011			2010
		Millions						Millions
PSEG and Power
Energy-Related Contracts	Operating Revenues	$	0		$	(78	)	$	(42	)	$	9
Energy-Related Contracts	Energy Costs		(2	)		2			1			(8	)
Total PSEG and Power		$	(2	)	$	(76	)	$	(41	)	$	1

Schedule Of Gross Volume On Absolute Basis For Derivative Contracts

Type	Notional	Total		PSEG		Power		PSE&G
	Millions
As of June 30, 2011
Natural Gas	Dth		779		0		526		253
Electricity	MWh		175		0		175		0
Financial Transmission Rights (FTRs)	MWh		26		0		26		0
Interest Rate Swaps	US Dollars		1,150		1,150		0		0
As of December 31, 2010
Natural Gas	Dth		704		0		424		280
Electricity	MWh		154		0		154		0
Capacity	MW days		1		0		1		0
FTRs	MWh		23		0		23		0
Interest Rate Swaps	US Dollars		1,150		1,150		0		0

Schedule Providing Credit Risk From Others, Net Of Collateral

Rating	Current Exposure		Securities held as Collateral		Net Exposure		Number of Counterparties >10%		Net Exposure of Counterparties >10%
			Millions						Millions
Investment Grade— External Rating	$	437	$	33	$	431		3	$	289	(A)
Non-Investment Grade—External Rating		20		0		20		0		0
Investment Grade—No External Rating		11		0		11		0		0
Non-Investment Grade—No External Rating		0		0		0		0		0
Total	$	468	$	33	$	462		3	$	289

(A) Includes net exposure of $151 million with PSE&G. The remaining net exposure of $138 million is with two nonaffiliated power purchasers which are regulated investment grade counterparties.