Income Taxes

3 Months Ended

Mar. 31, 2022

Income Taxes [Line Items]

Income Taxes

Income Taxes

A reconciliation of reported income tax expense for PSEG with the amount computed by multiplying pre-tax income by the statutory federal income tax rate of 21% is as follows:

	Three Months Ended
PSEG	March 31,
	2022			2021
	Millions
Pre-Tax Income (Loss)	$	(154)		$	765
Tax Computed at Statutory Rate @ 21%	$	(32)		$	161
Increase (Decrease) Attributable to Flow-Through of Certain Tax Adjustments:
State Income Taxes (net of federal income tax)	(29)			41
NDT Fund	(6)			8
Audit Settlement	—			(7)
Green Program Recovery Charges (GPRC)-CEF-Energy Efficiency (EE)	(6)			(1)
Tax Adjustment Credit (TAC)	(73)			(78)
Other	(6)			(7)
Subtotal	(120)			(44)
Total Income Tax Expense (Benefit)	$	(152)		$	117
Effective Income Tax Rate	98.7		%	15.3		%

A reconciliation of reported income tax expense for PSE&G with the amount computed by multiplying pre-tax income by the statutory federal income tax rate of 21% is as follows:

	Three Months Ended
PSE&G	March 31,
	2022			2021
	Millions
Pre-Tax Income	$	598		$	556
Tax Computed at Statutory Rate @ 21%	$	126		$	117
Increase (Decrease) Attributable to Flow-Through of Certain Tax Adjustments:
State Income Taxes (net of federal income tax)	41			38
GPRC-CEF-EE	(6)			(1)
TAC	(73)			(78)
Other	1			3
Subtotal	(37)			(38)
Total Income Tax Expense (Benefit)	$	89		$	79
Effective Income Tax Rate	14.9		%	14.2		%

PSEG expects that a prolonged economic recovery may result in additional federal and state tax legislation that can have a material impact on PSEG’s and PSE&G’s effective tax rate and cash tax position.

Amounts recorded under the Tax Cuts and Jobs Act of 2017 and Coronavirus Aid, Relief, and Economic Security Act are subject to change based on several factors, including whether the Internal Revenue Service or state taxing authorities issue additional guidance and/or further clarification. Any further guidance or clarification could impact PSEG’s and PSE&G’s financial statements.

As of March 31, 2022, PSE&G had a $7 million New Jersey Corporate Business Tax net operating loss (NOL) that is expected to be fully realized in the future. PSEG had a $46 million state NOL due to the sale of PSEG Power’s fossil generating portfolio that is expected to be fully realized in the future.

Public Service Electric and Gas Company [Member]

Income Taxes [Line Items]

Income Taxes

Income Taxes

A reconciliation of reported income tax expense for PSEG with the amount computed by multiplying pre-tax income by the statutory federal income tax rate of 21% is as follows:

	Three Months Ended
PSEG	March 31,
	2022			2021
	Millions
Pre-Tax Income (Loss)	$	(154)		$	765
Tax Computed at Statutory Rate @ 21%	$	(32)		$	161
Increase (Decrease) Attributable to Flow-Through of Certain Tax Adjustments:
State Income Taxes (net of federal income tax)	(29)			41
NDT Fund	(6)			8
Audit Settlement	—			(7)
Green Program Recovery Charges (GPRC)-CEF-Energy Efficiency (EE)	(6)			(1)
Tax Adjustment Credit (TAC)	(73)			(78)
Other	(6)			(7)
Subtotal	(120)			(44)
Total Income Tax Expense (Benefit)	$	(152)		$	117
Effective Income Tax Rate	98.7		%	15.3		%

A reconciliation of reported income tax expense for PSE&G with the amount computed by multiplying pre-tax income by the statutory federal income tax rate of 21% is as follows:

	Three Months Ended
PSE&G	March 31,
	2022			2021
	Millions
Pre-Tax Income	$	598		$	556
Tax Computed at Statutory Rate @ 21%	$	126		$	117
Increase (Decrease) Attributable to Flow-Through of Certain Tax Adjustments:
State Income Taxes (net of federal income tax)	41			38
GPRC-CEF-EE	(6)			(1)
TAC	(73)			(78)
Other	1			3
Subtotal	(37)			(38)
Total Income Tax Expense (Benefit)	$	89		$	79
Effective Income Tax Rate	14.9		%	14.2		%

PSEG expects that a prolonged economic recovery may result in additional federal and state tax legislation that can have a material impact on PSEG’s and PSE&G’s effective tax rate and cash tax position.

Amounts recorded under the Tax Cuts and Jobs Act of 2017 and Coronavirus Aid, Relief, and Economic Security Act are subject to change based on several factors, including whether the Internal Revenue Service or state taxing authorities issue additional guidance and/or further clarification. Any further guidance or clarification could impact PSEG’s and PSE&G’s financial statements.

As of March 31, 2022, PSE&G had a $7 million New Jersey Corporate Business Tax net operating loss (NOL) that is expected to be fully realized in the future. PSEG had a $46 million state NOL due to the sale of PSEG Power’s fossil generating portfolio that is expected to be fully realized in the future.