Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016




2016	PSEG			PSE&G			Power			Energy Holdings
	Millions
Total Amount of Unrecognized Tax Benefits as of January 1, 2016	$	386		$	181		$	111		$	93
Increases as a Result of Positions Taken in a Prior Period	12			3			6			2
Decreases as a Result of Positions Taken in a Prior Period	(62		)	(23		)	(1		)	(38		)
Increases as a Result of Positions Taken during the Current Period	19			6			12			—
Decreases as a Result of Positions Taken during the Current Period	—			—			—			—
Decreases as a Result of Settlements with Taxing Authorities	—			—			—			—
Decreases due to Lapses of Applicable Statute of Limitations	(27		)	(27		)	—			—
Total Amount of Unrecognized Tax Benefits as of December 31, 2016	$	328		$	140		$	128		$	57
Accumulated Deferred Income Taxes Associated with Unrecognized Tax Benefits	(200		)	(106		)	(74		)	(20		)
Regulatory Asset—Unrecognized Tax Benefits	(31		)	(31		)	—			—
Total Amount of Unrecognized Tax Benefits that if Recognized, would Impact the Effective Tax Rate (including Interest and Penalties)	$	97		$	3		$	54		$	37




2015	PSEG			PSE&G			Power			Energy Holdings
	Millions
Total Amount of Unrecognized Tax Benefits as of January 1, 2015	$	332		$	165		$	70		$	95
Increases as a Result of Positions Taken in a Prior Period	87			55			28			4
Decreases as a Result of Positions Taken in a Prior Period	(50		)	(43		)	(6		)	(1		)
Increases as a Result of Positions Taken during the Current Period	28			5			23			—
Decreases as a Result of Positions Taken during the Current Period	(1		)	(1		)	—			—
Decreases as a Result of Settlements with Taxing Authorities	(10		)	—			(4		)	(5		)
Decreases due to Lapses of Applicable Statute of Limitations	—			—			—			—
Total Amount of Unrecognized Tax Benefits as of December 31, 2015	$	386		$	181		$	111		$	93
Accumulated Deferred Income Taxes Associated with Unrecognized Tax Benefits	(264		)	(162		)	(68		)	(34		)
Regulatory Asset—Unrecognized Tax Benefits	(27		)	(27		)	—			—
Total Amount of Unrecognized Tax Benefits that if Recognized, would Impact the Effective Tax Rate (including Interest and Penalties)	$	95		$	(8	)	$	43		$	59




2014	PSEG			PSE&G			Power			Energy Holdings
	Millions
Total Amount of Unrecognized Tax Benefits as of January 1, 2014	$	478		$	208		$	156		$	110
Increases as a Result of Positions Taken in a Prior Period	82			65			17			—
Decreases as a Result of Positions Taken in a Prior Period	(190		)	(92		)	(80		)	(18		)
Increases as a Result of Positions Taken during the Current Period	30			16			9			5
Decreases as a Result of Positions Taken during the Current Period	(8		)	—			(8		)	—
Decreases as a Result of Settlements with Taxing Authorities	(60		)	(32		)	(24		)	(2		)
Decreases due to Lapses of Applicable Statute of Limitations	—			—			—			—
Total Amount of Unrecognized Tax Benefits as of December 31, 2014	$	332		$	165		$	70		$	95
Accumulated Deferred Income Taxes Associated with Unrecognized Tax Benefits	(225		)	(138		)	(52		)	(35		)
Regulatory Asset—Unrecognized Tax Benefits	(27		)	(27		)	—			—
Total Amount of Unrecognized Tax Benefits that if Recognized, would Impact the Effective Tax Rate (including Interest and Penalties)	$	80		$	—		$	18		$	60

Interest And Penalties Related To Uncertain Tax Positions

PSEG and its subsidiaries include accrued interest and penalties related to uncertain tax positions required to be recorded, as Income Tax Expense in the Consolidated Statements of Operations. Accumulated interest and penalties that are recorded on the Consolidated Balance Sheets on uncertain tax positions were as follows:




	Accumulated Interest and Penalties on Uncertain Tax Positions as of December 31,
	2016		2015		2014
	Millions
PSE&G	$	22	$	20	$	15
Power	17		6		9
Energy Holdings	20		40		45
Total	$	59	$	66	$	69

Possible Decrease In Total Unrecognized Tax Benefits Including Interest

It is reasonably possible that total unrecognized tax benefits will significantly increase or decrease within the next twelve months due to either agreements with various taxing authorities upon audit, the expiration of the Statute of Limitations, or other pending tax matters. These potential increases or decreases are as follows:




Possible (Increase)/Decrease in Total Unrecognized Tax Benefits	Over the next 12 Months
	Millions
PSEG	$	14
PSE&G	$	3
Power	$	7

Description Of Income Tax Years By Material Jurisdictions

A description of income tax years that remain subject to examination by material jurisdictions, where an examination has not already concluded are:




	PSEG	PSE&G	Power
United States
Federal	2011-2015	N/A	N/A
New Jersey	2006-2015	2011-2015	N/A
Pennsylvania	2006-2015	2007-2015	N/A
Connecticut	2007-2015	N/A	N/A
Texas	2008-2015	N/A	N/A
California	2006-2015	N/A	N/A
New York	2014-2015	N/A	2014-2015

PSEG [Member]

Income Taxes [Line Items]

Schedule of Effective Income Tax Rate Reconciliation

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 35% is as follows:




	Years Ended December 31,
PSEG	2016			2015			2014
	Millions
Net Income	$	887		$	1,679		$	1,518
Income Taxes:
Operating Income:
Current Expense:
Federal	$	(74	)	$	243		$	335
State	61			85			58
Total Current	(13		)	328			393
Deferred Expense:
Federal	311			540			262
State	28			104			260
Total Deferred	339			644			522
Investment Tax Credit (ITC)	85			29			23
Total Income Taxes	$	411		$	1,001		$	938
Pre-Tax Income	$	1,298		$	2,680		$	2,456
Tax Computed at Statutory Rate @ 35%	$	454		$	938		$	860
Increase (Decrease) Attributable to Flow-Through of Certain Tax Adjustments:
State Income Taxes (net of federal income tax)	56			129			145
Uncertain Tax Positions	(31		)	7			(9		)
Manufacturing Deduction	(17		)	(10		)	(16		)
NDT Fund	3			7			14
Plant-Related Items	(20		)	(20		)	(13		)
Tax Credits	(25		)	(13		)	(14		)
Audit Settlement	—			—			(12		)
Nuclear Decommissioning Tax Carryback	—			(33		)	—
Other	(9		)	(4		)	(17		)
Sub-Total	(43		)	63			78
Total Income Tax Provision	$	411		$	1,001		$	938
Effective Income Tax Rate	31.7		%	37.4		%	38.2		%

Deferred Income Taxes

The following is an analysis of deferred income taxes for PSEG:




	As of December 31,
PSEG	2016		2015
	Millions
Deferred Income Taxes
Assets:
Noncurrent
OPEB	$	283	$	256
Related to Uncertain Tax Position	155		160
Securitization-Overcollection	—		27
Total Noncurrent Assets	$	438	$	443

Liabilities:
Noncurrent:
Plant-Related Items	$	6,593	$	6,174
New Jersey Corporate Business Tax	674		615
Leasing Activities	565		612
Pension Costs	197		218
AROs and NDT Fund	398		393
Taxes Recoverable Through Future Rate (net)	208		191
Other	212		244
Total Noncurrent Liabilities	$	8,847	$	8,447
Summary of Accumulated Deferred Income Taxes:
Net Noncurrent Deferred Income Tax Liabilities	$	8,409	$	8,004
ITC	249		162
Net Total Noncurrent Deferred Income Taxes and ITC	$	8,658	$	8,166

The deferred tax effect of certain assets and liabilities is presented in the table above net of the deferred tax effect associated with the respective regulatory deferrals. Also, the deferred tax effect of AROs is presented net of the deferred tax effect of the associated funding of those obligations.

PSE&G [Member]

Income Taxes [Line Items]

Schedule of Effective Income Tax Rate Reconciliation

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 35% is as follows:




	Years Ended December 31,
PSE&G	2016			2015			2014
	Millions
Net Income	$	889		$	787		$	725
Income Taxes:
Operating Income:
Current Expense:
Federal	$	(153	)	$	32		$	124
State	10			52			16
Total Current	(143		)	84			140
Deferred Expense:
Federal	551			325			214
State	102			52			84
Total Deferred	653			377			298
ITC	5			9			11
Total Income Taxes	$	515		$	470		$	449
Pre-Tax Income	$	1,404		$	1,257		$	1,174
Tax Computed at Statutory Rate @ 35%	$	491		$	440		$	411
Increase (Decrease) Attributable to Flow-Through of Certain Tax Adjustments:
State Income Taxes (net of federal income tax)	72			67			65
Uncertain Tax Positions	(18		)	(14		)	—
Plant-Related Items	(20		)	(20		)	(13		)
Tax Credits	(7		)	(6		)	(7		)
Audit Settlement	—			—			1
Other	(3		)	3			(8		)
Sub-Total	24			30			38
Total Income Tax Provision	$	515		$	470		$	449
Effective Income Tax Rate	36.7		%	37.4		%	38.2		%

Deferred Income Taxes

The following is an analysis of deferred income taxes for PSE&G:




	As of December 31,
PSE&G	2016		2015
	Millions
Deferred Income Taxes
Assets:
Noncurrent:
OPEB	$	189	$	164
Securitization-Overcollection	—		27
Total Noncurrent Assets	$	189	$	191
Liabilities:
Noncurrent:
Plant-Related Items	$	4,983	$	4,435
New Jersey Corporate Business Tax	385		312
Conservation Costs	33		40
Pension Costs	252		262
Taxes Recoverable Through Future Rate (net)	208		191
Other	118		54
Total Noncurrent Liabilities	$	5,979	$	5,294
Summary of Accumulated Deferred Income Taxes:
Net Noncurrent Deferred Income Tax Liabilities	$	5,790	$	5,103
ITC	83		78
Net Total Noncurrent Deferred Income Taxes and ITC	$	5,873	$	5,181

The deferred tax effect of certain assets and liabilities is presented in the table above net of the deferred tax effect associated with the respective regulatory deferrals.

Power [Member]

Income Taxes [Line Items]

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation of reported income tax expense for Power with the amount computed by multiplying pre-tax income by the statutory federal income tax rate of 35% is as follows:




	Years Ended December 31,
Power	2016			2015			2014
	Millions
Net Income	$	18		$	856		$	760
Income Taxes:
Operating Income:
Current Expense:
Federal	$	107		$	220		$	231
State	40			30			39
Total Current	147			250			270
Deferred Expense:
Federal	(222		)	189			163
State	(68		)	52			48
Total Deferred	(290		)	241			211
ITC	82			20			10
Total Income Taxes	$	(61	)	$	511		$	491
Pre-Tax Income	$	(43	)	$	1,367		$	1,251
Tax Computed at Statutory Rate @ 35%	$	(15	)	$	478		$	438
Increase (Decrease) Attributable to Flow-Through of Certain Tax Adjustments:
State Income Taxes (net of federal income tax)	(18		)	59			58
Manufacturing Deduction	(17		)	(10		)	(16		)
NDT Fund	3			7			15
Tax Credits	(18		)	(7		)	(6		)
Uncertain Tax Positions	9			22			(8		)
Audit Settlement	—			—			(4		)
Nuclear Decommissioning Tax Carryback	—			(33		)	—
Other	(5		)	(5		)	14
Sub-Total	(46		)	33			53
Total Income Tax Provision	$	(61	)	$	511		$	491
Effective Income Tax Rate	141.9		%	37.4		%	39.2		%

Deferred Income Taxes

The following is an analysis of deferred income taxes for Power:




	As of December 31,
Power	2016		2015
	Millions
Deferred Income Taxes
Assets:
Noncurrent:
Pension Costs	$	68	$	56
Contractual Liabilities & Environmental Costs	18		18
Related to Uncertain Tax Positions	53		47
Other	76		—
Total Noncurrent Assets	$	215	$	121
Liabilities:
Noncurrent:
Plant-Related Items	$	1,605	$	1,736
New Jersey Corporate Business Tax	214		243
AROs and NDT Fund	400		395
Other	—		10
Total Noncurrent Liabilities	$	2,219	$	2,384
Summary of Accumulated Deferred Income Taxes:
Net Noncurrent Deferred Income Tax Liabilities	$	2,004	$	2,263
ITC	166		84
Net Total Noncurrent Deferred Income Taxes and ITC	$	2,170	$	2,347

In the above table, the deferred tax effect of asset retirement obligations is presented net of the deferred tax effect of the associated funding of those obligations.