Income Taxes (Tables)

12 Months Ended

Dec. 31, 2012

Unrecognized Tax Benefits

2012	PSEG			Power			PSE&G			Energy Holdings
	Millions
Total Amount of Unrecognized Tax Benefits as of January 1, 2012	$	825		$	121		$	113		$	555
Increases as a Result of Positions Taken in a Prior Period	92			27			55			9
Decreases as a Result of Positions Taken in a Prior Period	(173		)	(7		)	(47		)	(119		)
Increases as a Result of Positions Taken during the Current Period	47			3			42			—
Decreases as a Result of Positions Taken during the Current Period	—			—			—			—
Decreases as a Result of Settlements with Taxing Authorities	(389		)	(10		)	—			(344		)
Decreases due to Lapses of Applicable Statute of Limitations	—			—			—			—
Total Amount of Unrecognized Tax Benefits as of December 31, 2012	$	402		$	134		$	163		$	101
Accumulated Deferred Income Taxes Associated with Unrecognized Tax Benefits	(264		)	(93		)	(133		)	(35		)
Regulatory Asset—Unrecognized Tax Benefits	(30		)	—			(30		)	—
Total Amount of Unrecognized Tax Benefits that if Recognized, would Impact the Effective Tax Rate (including Interest and Penalties)	$	108		$	41		$	—		$	66

2011	PSEG			Power			PSE&G			Energy Holdings
	Millions
Total Amount of Unrecognized Tax Benefits as of January 1, 2011	$	756		$	101		$	82		$	539
Increases as a Result of Positions Taken in a Prior Period	58			24			14			17
Decreases as a Result of Positions Taken in a Prior Period	(22		)	(9		)	—			(12		)
Increases as a Result of Positions Taken during the Current Period	37			8			18			11
Decreases as a Result of Positions Taken during the Current Period	(4		)	(3		)	(1		)	—
Decreases as a Result of Settlements with Taxing Authorities	—			—			—			—
Decreases due to Lapses of Applicable Statute of Limitations	—			—			—			—
Total Amount of Unrecognized Tax Benefits as of December 31, 2011	$	825		$	121		$	113		$	555
Accumulated Deferred Income Taxes Associated with Unrecognized Tax Benefits	(379		)	(77		)	(65		)	(213		)
Regulatory Asset—Unrecognized Tax Benefits	(20		)	—			(20		)	—
Total Amount of Unrecognized Tax Benefits that if Recognized, would Impact the Effective Tax Rate (including Interest and Penalties)	$	426		$	44		$	28		$	342

2010	PSEG			Power			PSE&G			Energy Holdings
	Millions
Total Amount of Unrecognized Tax Benefits as of January 1, 2010	$	836		$	(42	)	$	35		$	820
Increases as a Result of Positions Taken in a Prior Period	290			111			79			90
Decreases as a Result of Positions Taken in a Prior Period	(450		)	(29		)	(38		)	(383		)
Increases as a Result of Positions Taken during the Current Period	82			63			6			12
Decreases as a Result of Positions Taken during the Current Period	(2		)	(2		)	—			—
Decreases as a Result of Settlements with Taxing Authorities	—			—			—			—
Decreases due to Lapses of Applicable Statute of Limitations	—			—			—			—
Total Amount of Unrecognized Tax Benefits as of December 31, 2010	$	756		$	101		$	82		$	539
Accumulated Deferred Income Taxes Associated with Unrecognized Tax Benefits	(332		)	(67		)	(38		)	(204		)
Regulatory Asset—Unrecognized Tax Benefits	(16		)	—			(16		)	—
Total Amount of Unrecognized Tax Benefits that if Recognized, would Impact the Effective Tax Rate (including Interest and Penalties)	$	408		$	34		$	28		$	335

Interest And Penalties Related To Uncertain Tax Positions

	Interest and Penalties on Uncertain Tax Positions Years Ended December 31,
	2012			2011			2010
	Millions
Power	$	(2	)	$	(11	)	$	(17	)
PSE&G	1			(24		)	(20		)
Energy Holdings	39			420			407
Other	—			10			9
Total	$	38		$	395		$	379

Possible Decrease In Total Unrecognized Tax Benefits Including Interest

Possible Decrease in Total Unrecognized Tax Benefits including Interest	Over the next 12 Months
	Millions
PSEG	$	75
Power	$	5
PSE&G	$	—

Description Of Income Tax Years By Material Jurisdictions

	PSEG	Power	PSE&G
United States
Federal	2007-2011	N/A	N/A
New Jersey	2006-2011	N/A	2006-2011
Pennsylvania	2001-2011	N/A	2000-2011
Connecticut	2002-2011	N/A	N/A
Texas	2007-2011	N/A	N/A
California	2003-2011	N/A	N/A
New York	2009-2011	2009-2011	N/A

PSEG [Member]

Reconciliation Of Reported Income Tax Expense

	Years Ended December 31,
	2012			2011			2010
	Millions
Net Income	$	1,275		$	1,503		$	1,564
Income (Loss) from Discontinued Operations, including Gain on Disposal, net of tax benefit	—			96			7
Income from Continuing Operations	1,275			1,407			1,557
Preferred Dividends	—			—			(1		)
Income from Continuing Operations, excluding Preferred Dividends	$	1,275		$	1,407		$	1,558
Income Taxes:
Operating Income:
Current Expense:
Federal	$	(204	)	$	258		$	(166	)
State	(2		)	32			157
Total Current	(206		)	290			(9		)
Deferred Expense:
Federal	758			501			992
State	125			191			79
Total Deferred	883			692			1,071
Investment Tax Credit	59			(5		)	(3		)
Total Income Taxes	$	736		$	977		$	1,059
Pre-Tax Income	$	2,011		$	2,384		$	2,617
Tax Computed at Statutory Rate @ 35%	$	704		$	834		$	916
Increase (Decrease) Attributable to Flow-Through of Certain Tax Adjustments:
State Income Taxes (net of federal income tax)	115			146			154
Uncertain Tax Positions	4			19			30
Manufacturing Deduction	—			(15		)	(24		)
Nuclear Decommissioning Trust	10			14			10
Plant-Related Items	(5		)	(6		)	(3		)
Tax Credits	(10		)	(5		)	(2		)
Audit Settlement	(71		)	—			—
Other	(11		)	(10		)	(22		)
Sub-Total	32			143			143
Total Income Tax Provision	$	736		$	977		$	1,059
Effective Income Tax Rate	36.6		%	41.0		%	40.5		%

Deferred Income Taxes

	As of December 31,
	2012		2011
	Millions
Deferred Income Taxes
Assets:
Current (net)	$	49	$	—
Noncurrent:
Unrecovered Investment Tax Credit	$	30	$	15
Accumulated Other Comprehensive Income (Loss)	40		39
Cumulative Effect of a Change in Accounting Principle	11		11
OPEB	200		208
Cost of Removal	51		51
Contractual Liabilities & Environmental Costs	35		35
MTC	18		26
Related to Uncertain Tax Positions	75		104
Capital Loss	35		—
Other	82		44
Total Non-Current Assets	$	577	$	533
Total Assets	$	626	$	533
Liabilities:
Current (net)	$	72	$	170
Noncurrent:
Plant-Related Items	$	4,685	$	3,894
Nuclear Decommissioning	209		155
New Jersey Corporate Business Tax	343		180
Securitization	371		495
Leasing Activities	656		527
Partnership Activity	17		18
Conservation Costs	101		97
Pension Costs	180		129
AROs	297		302
Taxes Recoverable Through Future Rate (net)	165		158
Total Noncurrent Liabilities	$	7,024	$	5,955
Total Liabilities	$	7,096	$	6,125
Summary of Accumulated Deferred Income Taxes:
Net Current Deferred Income Tax Assets	$	49	$	—
Net Current Deferred Income Tax Liability	$	72	$	170
Net Noncurrent Deferred Income Tax Liabilities	$	6,447	$	5,422
Investment Tax Credit (ITC)	95		36
Net Total Noncurrent Deferred Income Taxes and ITC	$	6,542	$	5,458

Power [Member]

Reconciliation Of Reported Income Tax Expense

	Years Ended December 31,
	2012			2011			2010
	Millions
Net Income	$	647		$	1,098		$	1,143
Income (Loss) from Discontinued Operations, net of tax	—			96			7
Income from Continuing Operations	$	647		$	1,002		$	1,136
Income Taxes:
Operating Income:
Current Expense:
Federal	$	83		$	400		$	12
State	53			40			127
Total Current	136			440			139
Deferred Expense:
Federal	262			151			598
State	35			94			41
Total Deferred	297			245			639
Total Income Taxes	$	433		$	685		$	778
Pre-Tax Income	$	1,080		$	1,687		$	1,914
Tax Computed at Statutory Rate @ 35%	$	378		$	591		$	670
Increase (Decrease) Attributable to Flow-Through of Certain Tax Adjustments:
State Income Taxes (net of federal income tax)	55			87			109
Manufacturing Deduction	—			(15		)	(24		)
Nuclear Decommissioning Trust	10			14			10
Uncertain Tax Positions	(6		)	11			10
Audit Settlement	(1		)	—			—
Other	(3		)	(3		)	3
Sub-Total	55			94			108
Total Income Tax Provision	$	433		$	685		$	778
Effective Income Tax Rate	40.1		%	40.6		%	40.6		%

Deferred Income Taxes

	As of December 31,
	2012		2011
	Millions
Deferred Income Taxes
Assets:
Noncurrent:
Cumulative Effect of a Change in Accounting Principle	$	11	$	11
Pension Costs	38		53
Accumulated Other Comprehensive Income (Loss)	40		39
Cost of Removal	51		51
Contractual Liabilities & Environmental Costs	35		35
Related to Uncertain Tax Positions	27		4
Capital Loss	12		—
Other	2		22
Total Noncurrent Assets	$	216	$	215
Total Assets	$	216	$	215
Liabilities:
Current (net)	$	16	$	53
Noncurrent:
Plant-Related Items	$	1,253	$	1,013
New Jersey Corporate Business Tax	28		7
Nuclear Decommissioning	209		155
AROs	297		302
Total Noncurrent Liabilities	$	1,787	$	1,477
Total Liabilities	$	1,803	$	1,530
Summary of Accumulated Deferred Income Taxes:
Net Current Deferred Income Tax Liabilities	$	16	$	53
Net Noncurrent Deferred Income Tax Liabilities	$	1,571	$	1,262
Investment Tax Credit (ITC)	4		4
Net Total Noncurrent Deferred Income Taxes and ITC	$	1,575	$	1,266

PSE&G [Member]

Reconciliation Of Reported Income Tax Expense

	Years Ended December 31,
	2012			2011			2010
	Millions
Net Income	$	528		$	521		$	358
Preferred Dividends	—			—			(1		)
Income from Continuing Operations, excluding Preferred Dividends	$	528		$	521		$	359
Income Taxes:
Operating Income:
Current Expense:
Federal	$	(217	)	$	(225	)	$	(211	)
State	9			(6		)	(1		)
Total Current	(208		)	(231		)	(212		)
Deferred Expense:
Federal	409			483			384
State	83			92			63
Total Deferred	492			575			447
Investment Tax Credit	23			(4		)	(3		)
Total Income Taxes	$	307		$	340		$	232
Pre-Tax Income	$	835		$	861		$	591
Tax Computed at Statutory Rate @ 35%	$	292		$	301		$	207
Increase (Decrease) Attributable to Flow-Through of Certain Tax Adjustments:
State Income Taxes (net of federal income tax)	52			56			40
Uncertain Tax Positions	7			(1		)	(1		)
Plant-Related Items	(4		)	(6		)	(3		)
Tax Credits	(3		)	(4		)	(2		)
Audit Settlement	(31		)	—			—
Other	(6		)	(6		)	(9		)
Sub-Total	15			39			25
Total Income Tax Provision	$	307		$	340		$	232
Effective Income Tax Rate	36.8		%	39.5		%	39.2		%

Deferred Income Taxes

	As of December 31,
	2012		2011
	Millions
Deferred Income Taxes
Assets:
Current (net)	$	49	$	—
Noncurrent:
Unrecovered ITC	$	18	$	10
OPEB	189		197
MTC	18		26
Related to Uncertain Tax Positions	15		30
Other	42		13
Total Noncurrent Assets	$	282	$	276
Total Assets	$	331	$	276
Liabilities:
Current (net)	$	60	$	32
Noncurrent:
Plant-Related Items	$	3,374	$	2,875
New Jersey Corporate Business Tax	253		146
Securitization	371		495
Conservation Costs	101		97
Pension Costs	189		151
Taxes Recoverable Through Future Rate (net)	165		158
Total Noncurrent Liabilities	$	4,453	$	3,922
Total Liabilities	$	4,513	$	3,954
Summary of Accumulated Deferred Income Taxes:
Net Current Deferred Income Tax Assets	$	49	$	—
Net Current Deferred Income Tax Liability	$	60	$	32
Net Noncurrent Deferred Income Tax Liability	$	4,171	$	3,646
Investment Tax Credit (ITC)	52		29
Net Total Noncurrent Deferred Income Taxes and ITC	$	4,223	$	3,675