Income Taxes

PSEG’s, PSE&G’s and Power's effective tax rates for the three months and six months ended June 30, 2015 and 2014 were as follows:




	Three Months Ended		Six Months Ended
	June 30,		June 30,
	2015	2014	2015	2014
PSEG	35.0%	34.8%	38.5%	38.4%
PSE&G	38.4%	36.5%	39.0%	38.6%
Power	30.3%	28.9%	37.9%	37.8%

An explanation of the material changes in the effective tax rates is as follows:

For the three months ended June 30, 2015, PSE&G's effective tax rate was lower than the statutory tax rate of 40.85% due primarily to the beneficial impact of plant related flow-through items.

For the three months ended June 30, 2015, Power’s effective tax rate was lower than the statutory tax rate of 40.85% due primarily to the beneficial impact of the manufacturing deduction under Section 199 of the Internal Revenue Code (IRC) and the benefit associated with the income tax rate differential of carrying back federal net operating tax losses under section 172(f) of the IRC.

For the three months ended June 30, 2015, as compared to the same period in the prior year, PSE&G's increase was due primarily to the absence of the 2014 tax flow-through benefit associated with injuries and damages and an unfavorable increase in the flow-through of bad debt expense for 2015.

For the three months ended June 30, 2015, as compared to the same period in the prior year, Power's increase was due primarily to the net reduction in the manufacturing deduction under Section 199 of the Internal Revenue Code and a reduction in purchased state income tax credits, partially offset by the tax benefit associated with the income tax rate differential of carrying back federal net operating tax losses under section 172(f) of the IRC.

Income Taxes [Line Items]

Income Taxes

PSEG’s, PSE&G’s and Power's effective tax rates for the three months and six months ended June 30, 2015 and 2014 were as follows:




	Three Months Ended		Six Months Ended
	June 30,		June 30,
	2015	2014	2015	2014
PSEG	35.0%	34.8%	38.5%	38.4%
PSE&G	38.4%	36.5%	39.0%	38.6%
Power	30.3%	28.9%	37.9%	37.8%

An explanation of the material changes in the effective tax rates is as follows:

For the three months ended June 30, 2015, PSE&G's effective tax rate was lower than the statutory tax rate of 40.85% due primarily to the beneficial impact of plant related flow-through items.

For the three months ended June 30, 2015, Power’s effective tax rate was lower than the statutory tax rate of 40.85% due primarily to the beneficial impact of the manufacturing deduction under Section 199 of the Internal Revenue Code (IRC) and the benefit associated with the income tax rate differential of carrying back federal net operating tax losses under section 172(f) of the IRC.

For the three months ended June 30, 2015, as compared to the same period in the prior year, PSE&G's increase was due primarily to the absence of the 2014 tax flow-through benefit associated with injuries and damages and an unfavorable increase in the flow-through of bad debt expense for 2015.

For the three months ended June 30, 2015, as compared to the same period in the prior year, Power's increase was due primarily to the net reduction in the manufacturing deduction under Section 199 of the Internal Revenue Code and a reduction in purchased state income tax credits, partially offset by the tax benefit associated with the income tax rate differential of carrying back federal net operating tax losses under section 172(f) of the IRC.