Leases

12 Months Ended

Dec. 31, 2020

Leases

Leases

As of December 31, 2020, PSEG and its subsidiaries were both a lessee and a lessor in operating leases.

Lessee

PSE&G

PSE&G has operating leases for office space for customer service centers, rooftops and land for its Solar 4 All® facilities, equipment, vehicles and land for certain electric substations. These leases have remaining lease terms through 2040, some of which include options to extend the leases for up to five five-year terms. Some leases have fixed rent payments that have escalations based on certain indices, such as the CPI. Certain leases contain variable payments.

PSEG Power

PSEG Power has operating leases for buildings, land leases for its solar generating facilities, merchant transmission and equipment. These leases have remaining terms through 2055, some of which include options to extend the leases for up to seven five-year terms and certain other leases which include options to extend the leases for 15 to 20 year terms. Some leases have fixed rent payments that have escalations based on certain indices, such as the CPI. Certain leases contain variable payments.

Other

Services has operating leases for real estate and office equipment. These leases have remaining terms through 2030. Services’ lease for its headquarters, which ends in 2030, includes options to extend for two five-year terms.

Operating Lease Costs

The following amounts relate to total operating lease costs, including both amounts recognized in the Consolidated Statements of Operations during the years ended December 31, 2020 and 2019 and any amounts capitalized as part of the cost of another asset, and the cash flows arising from lease transactions.

	PSE&G			PSEG Power			Other			Total
	Millions
Operating Lease Costs
Year Ended December 31, 2020
Long-term Lease Costs	$	26		$	14		$	14		$	54
Short-term Lease Costs	38			7			—			45
Variable Lease Costs	2			20			9			31
Total Operating Lease Costs	$	66		$	41		$	23		$	130
Year Ended December 31, 2020
Cash Paid for Amounts Included in the Measurement of Operating Lease Liabilities	$	17		$	14		$	14		$	45
Weighted Average Remaining Lease Term in Years	12			14			10			11
Weighted Average Discount Rate	3.5		%	4.5		%	4.2		%	4.0		%

	PSE&G			PSEG Power			Other			Total
	Millions
Operating Lease Costs
Year Ended December 31, 2019
Long-term Lease Costs	$	24		$	13		$	15		$	52
Short-term Lease Costs	14			10			—			24
Variable Lease Costs	2			10			10			22
Total Operating Lease Costs	$	40		$	33		$	25		$	98
Year Ended December 31, 2019
Cash Paid for Amounts Included in the Measurement of Operating Lease Liabilities	$	16		$	11		$	15		$	42
Weighted Average Remaining Lease Term in Years	13			14			10			12
Weighted Average Discount Rate	3.6		%	4.4		%	4.2		%	4.1		%

Operating lease liabilities as of December 31, 2020 had the following maturities on an undiscounted basis:

	PSE&G		PSEG Power		Other		Total
	Millions
2021	$	16	$	14	$	15	$	45
2022	13		14		15		42
2023	11		8		15		34
2024	10		3		15		28
2025	8		3		15		26
Thereafter	69		47		75		191
Total Minimum Lease Payments	$	127	$	89	$	150	$	366

The following is a reconciliation of the undiscounted cash flows to the discounted Operating Lease Liabilities recognized on the Consolidated Balance Sheets:

	As of December 31, 2020
	PSE&G		PSEG Power		Other		Total
	Millions
Undiscounted Cash Flows	$	127	$	89	$	150	$	366
Reconciling Amount due to Discount Rate	(26)		(27)		(27)		(80)
Total Discounted Operating Lease Liabilities	$	101	$	62	$	123	$	286
	As of December 31, 2019
	PSE&G		PSEG Power		Other		Total
	Millions
Undiscounted Cash Flows	$	126	$	100	$	168	$	394
Reconciling Amount due to Discount Rate	(27)		(28)		(33)		(88)
Total Discounted Operating Lease Liabilities	$	99	$	72	$	135	$	306

As of December 31, 2020, the current portions of Operating Lease Liabilities included in Other Current Liabilities were $34 million, $13 million and $11 million for PSEG, PSE&G and PSEG Power, respectively. As of December 31, 2019, the current portions of Operating Lease Liabilities included in Other Current Liabilities were $33 million, $12 million and $10 million for PSEG, PSE&G and PSEG Power, respectively.

Lessor

PSEG Power

Certain of PSEG Power’s sales agreements related to its solar generating plants qualify as operating leases with remaining terms through 2043 with no extension terms. Lease income is based on solar energy generation; therefore, all rental income is variable under these leases. As of December 31, 2020, PSEG Power’s solar generating plants subject to these leases had a total carrying value of $376 million.

Other

Energy Holdings is the lessor in leveraged leases. See Note 9. Long-Term Investments and Note 10. Financing Receivables.

Energy Holdings is the lessor in two operating leases for domestic energy generation facilities with remaining terms through 2036, one of which has an optional renewal period. As of December 31, 2020, Energy Holdings’ property subject to these leases had a total carrying value of $83 million.

Energy Holdings was previously the lessor in operating leases for real estate assets which were sold in March 2020.

The following is the operating lease income for PSEG Power and Energy Holdings for the years ended December 31, 2020 and 2019:

	PSEG Power		Energy Holdings		Total
	Millions
Operating Lease Income
Year Ended December 31, 2020
Fixed Lease Income	$	—	$	15	$	15
Variable Lease Income	26		—		26
Total Operating Lease Income	$	26	$	15	$	41
Year Ended December 31, 2019
Fixed Lease Income	$	—	$	22	$	22
Variable Lease Income	23		—		23
Total Operating Lease Income	$	23	$	22	$	45

Energy Holdings’ operating leases had the following minimum future fixed lease receipts as of December 31, 2020:

	Millions
2021	$	14
2022	14
2023	14
2024	14
2025	14
Thereafter	227
Total Minimum Future Lease Receipts	$	297

Leases

Leases

As of December 31, 2020, PSEG and its subsidiaries were both a lessee and a lessor in operating leases.

Lessee

PSE&G

PSE&G has operating leases for office space for customer service centers, rooftops and land for its Solar 4 All® facilities, equipment, vehicles and land for certain electric substations. These leases have remaining lease terms through 2040, some of which include options to extend the leases for up to five five-year terms. Some leases have fixed rent payments that have escalations based on certain indices, such as the CPI. Certain leases contain variable payments.

PSEG Power

PSEG Power has operating leases for buildings, land leases for its solar generating facilities, merchant transmission and equipment. These leases have remaining terms through 2055, some of which include options to extend the leases for up to seven five-year terms and certain other leases which include options to extend the leases for 15 to 20 year terms. Some leases have fixed rent payments that have escalations based on certain indices, such as the CPI. Certain leases contain variable payments.

Other

Services has operating leases for real estate and office equipment. These leases have remaining terms through 2030. Services’ lease for its headquarters, which ends in 2030, includes options to extend for two five-year terms.

Operating Lease Costs

The following amounts relate to total operating lease costs, including both amounts recognized in the Consolidated Statements of Operations during the years ended December 31, 2020 and 2019 and any amounts capitalized as part of the cost of another asset, and the cash flows arising from lease transactions.

	PSE&G			PSEG Power			Other			Total
	Millions
Operating Lease Costs
Year Ended December 31, 2020
Long-term Lease Costs	$	26		$	14		$	14		$	54
Short-term Lease Costs	38			7			—			45
Variable Lease Costs	2			20			9			31
Total Operating Lease Costs	$	66		$	41		$	23		$	130
Year Ended December 31, 2020
Cash Paid for Amounts Included in the Measurement of Operating Lease Liabilities	$	17		$	14		$	14		$	45
Weighted Average Remaining Lease Term in Years	12			14			10			11
Weighted Average Discount Rate	3.5		%	4.5		%	4.2		%	4.0		%

	PSE&G			PSEG Power			Other			Total
	Millions
Operating Lease Costs
Year Ended December 31, 2019
Long-term Lease Costs	$	24		$	13		$	15		$	52
Short-term Lease Costs	14			10			—			24
Variable Lease Costs	2			10			10			22
Total Operating Lease Costs	$	40		$	33		$	25		$	98
Year Ended December 31, 2019
Cash Paid for Amounts Included in the Measurement of Operating Lease Liabilities	$	16		$	11		$	15		$	42
Weighted Average Remaining Lease Term in Years	13			14			10			12
Weighted Average Discount Rate	3.6		%	4.4		%	4.2		%	4.1		%

Operating lease liabilities as of December 31, 2020 had the following maturities on an undiscounted basis:

	PSE&G		PSEG Power		Other		Total
	Millions
2021	$	16	$	14	$	15	$	45
2022	13		14		15		42
2023	11		8		15		34
2024	10		3		15		28
2025	8		3		15		26
Thereafter	69		47		75		191
Total Minimum Lease Payments	$	127	$	89	$	150	$	366

The following is a reconciliation of the undiscounted cash flows to the discounted Operating Lease Liabilities recognized on the Consolidated Balance Sheets:

	As of December 31, 2020
	PSE&G		PSEG Power		Other		Total
	Millions
Undiscounted Cash Flows	$	127	$	89	$	150	$	366
Reconciling Amount due to Discount Rate	(26)		(27)		(27)		(80)
Total Discounted Operating Lease Liabilities	$	101	$	62	$	123	$	286
	As of December 31, 2019
	PSE&G		PSEG Power		Other		Total
	Millions
Undiscounted Cash Flows	$	126	$	100	$	168	$	394
Reconciling Amount due to Discount Rate	(27)		(28)		(33)		(88)
Total Discounted Operating Lease Liabilities	$	99	$	72	$	135	$	306

As of December 31, 2020, the current portions of Operating Lease Liabilities included in Other Current Liabilities were $34 million, $13 million and $11 million for PSEG, PSE&G and PSEG Power, respectively. As of December 31, 2019, the current portions of Operating Lease Liabilities included in Other Current Liabilities were $33 million, $12 million and $10 million for PSEG, PSE&G and PSEG Power, respectively.

Lessor

PSEG Power

Certain of PSEG Power’s sales agreements related to its solar generating plants qualify as operating leases with remaining terms through 2043 with no extension terms. Lease income is based on solar energy generation; therefore, all rental income is variable under these leases. As of December 31, 2020, PSEG Power’s solar generating plants subject to these leases had a total carrying value of $376 million.

Other

Energy Holdings is the lessor in leveraged leases. See Note 9. Long-Term Investments and Note 10. Financing Receivables.

Energy Holdings is the lessor in two operating leases for domestic energy generation facilities with remaining terms through 2036, one of which has an optional renewal period. As of December 31, 2020, Energy Holdings’ property subject to these leases had a total carrying value of $83 million.

Energy Holdings was previously the lessor in operating leases for real estate assets which were sold in March 2020.

The following is the operating lease income for PSEG Power and Energy Holdings for the years ended December 31, 2020 and 2019:

	PSEG Power		Energy Holdings		Total
	Millions
Operating Lease Income
Year Ended December 31, 2020
Fixed Lease Income	$	—	$	15	$	15
Variable Lease Income	26		—		26
Total Operating Lease Income	$	26	$	15	$	41
Year Ended December 31, 2019
Fixed Lease Income	$	—	$	22	$	22
Variable Lease Income	23		—		23
Total Operating Lease Income	$	23	$	22	$	45

Energy Holdings’ operating leases had the following minimum future fixed lease receipts as of December 31, 2020:

	Millions
2021	$	14
2022	14
2023	14
2024	14
2025	14
Thereafter	227
Total Minimum Future Lease Receipts	$	297

Public Service Electric and Gas Company

Leases

Leases

As of December 31, 2020, PSEG and its subsidiaries were both a lessee and a lessor in operating leases.

Lessee

PSE&G

PSE&G has operating leases for office space for customer service centers, rooftops and land for its Solar 4 All® facilities, equipment, vehicles and land for certain electric substations. These leases have remaining lease terms through 2040, some of which include options to extend the leases for up to five five-year terms. Some leases have fixed rent payments that have escalations based on certain indices, such as the CPI. Certain leases contain variable payments.

PSEG Power

PSEG Power has operating leases for buildings, land leases for its solar generating facilities, merchant transmission and equipment. These leases have remaining terms through 2055, some of which include options to extend the leases for up to seven five-year terms and certain other leases which include options to extend the leases for 15 to 20 year terms. Some leases have fixed rent payments that have escalations based on certain indices, such as the CPI. Certain leases contain variable payments.

Other

Services has operating leases for real estate and office equipment. These leases have remaining terms through 2030. Services’ lease for its headquarters, which ends in 2030, includes options to extend for two five-year terms.

Operating Lease Costs

The following amounts relate to total operating lease costs, including both amounts recognized in the Consolidated Statements of Operations during the years ended December 31, 2020 and 2019 and any amounts capitalized as part of the cost of another asset, and the cash flows arising from lease transactions.

	PSE&G			PSEG Power			Other			Total
	Millions
Operating Lease Costs
Year Ended December 31, 2020
Long-term Lease Costs	$	26		$	14		$	14		$	54
Short-term Lease Costs	38			7			—			45
Variable Lease Costs	2			20			9			31
Total Operating Lease Costs	$	66		$	41		$	23		$	130
Year Ended December 31, 2020
Cash Paid for Amounts Included in the Measurement of Operating Lease Liabilities	$	17		$	14		$	14		$	45
Weighted Average Remaining Lease Term in Years	12			14			10			11
Weighted Average Discount Rate	3.5		%	4.5		%	4.2		%	4.0		%

	PSE&G			PSEG Power			Other			Total
	Millions
Operating Lease Costs
Year Ended December 31, 2019
Long-term Lease Costs	$	24		$	13		$	15		$	52
Short-term Lease Costs	14			10			—			24
Variable Lease Costs	2			10			10			22
Total Operating Lease Costs	$	40		$	33		$	25		$	98
Year Ended December 31, 2019
Cash Paid for Amounts Included in the Measurement of Operating Lease Liabilities	$	16		$	11		$	15		$	42
Weighted Average Remaining Lease Term in Years	13			14			10			12
Weighted Average Discount Rate	3.6		%	4.4		%	4.2		%	4.1		%

Operating lease liabilities as of December 31, 2020 had the following maturities on an undiscounted basis:

	PSE&G		PSEG Power		Other		Total
	Millions
2021	$	16	$	14	$	15	$	45
2022	13		14		15		42
2023	11		8		15		34
2024	10		3		15		28
2025	8		3		15		26
Thereafter	69		47		75		191
Total Minimum Lease Payments	$	127	$	89	$	150	$	366

The following is a reconciliation of the undiscounted cash flows to the discounted Operating Lease Liabilities recognized on the Consolidated Balance Sheets:

	As of December 31, 2020
	PSE&G		PSEG Power		Other		Total
	Millions
Undiscounted Cash Flows	$	127	$	89	$	150	$	366
Reconciling Amount due to Discount Rate	(26)		(27)		(27)		(80)
Total Discounted Operating Lease Liabilities	$	101	$	62	$	123	$	286
	As of December 31, 2019
	PSE&G		PSEG Power		Other		Total
	Millions
Undiscounted Cash Flows	$	126	$	100	$	168	$	394
Reconciling Amount due to Discount Rate	(27)		(28)		(33)		(88)
Total Discounted Operating Lease Liabilities	$	99	$	72	$	135	$	306

As of December 31, 2020, the current portions of Operating Lease Liabilities included in Other Current Liabilities were $34 million, $13 million and $11 million for PSEG, PSE&G and PSEG Power, respectively. As of December 31, 2019, the current portions of Operating Lease Liabilities included in Other Current Liabilities were $33 million, $12 million and $10 million for PSEG, PSE&G and PSEG Power, respectively.

Lessor

PSEG Power

Certain of PSEG Power’s sales agreements related to its solar generating plants qualify as operating leases with remaining terms through 2043 with no extension terms. Lease income is based on solar energy generation; therefore, all rental income is variable under these leases. As of December 31, 2020, PSEG Power’s solar generating plants subject to these leases had a total carrying value of $376 million.

Other

Energy Holdings is the lessor in leveraged leases. See Note 9. Long-Term Investments and Note 10. Financing Receivables.

Energy Holdings is the lessor in two operating leases for domestic energy generation facilities with remaining terms through 2036, one of which has an optional renewal period. As of December 31, 2020, Energy Holdings’ property subject to these leases had a total carrying value of $83 million.

Energy Holdings was previously the lessor in operating leases for real estate assets which were sold in March 2020.

The following is the operating lease income for PSEG Power and Energy Holdings for the years ended December 31, 2020 and 2019:

	PSEG Power		Energy Holdings		Total
	Millions
Operating Lease Income
Year Ended December 31, 2020
Fixed Lease Income	$	—	$	15	$	15
Variable Lease Income	26		—		26
Total Operating Lease Income	$	26	$	15	$	41
Year Ended December 31, 2019
Fixed Lease Income	$	—	$	22	$	22
Variable Lease Income	23		—		23
Total Operating Lease Income	$	23	$	22	$	45

Energy Holdings’ operating leases had the following minimum future fixed lease receipts as of December 31, 2020:

	Millions
2021	$	14
2022	14
2023	14
2024	14
2025	14
Thereafter	227
Total Minimum Future Lease Receipts	$	297

Leases

Leases

As of December 31, 2020, PSEG and its subsidiaries were both a lessee and a lessor in operating leases.

Lessee

PSE&G

PSE&G has operating leases for office space for customer service centers, rooftops and land for its Solar 4 All® facilities, equipment, vehicles and land for certain electric substations. These leases have remaining lease terms through 2040, some of which include options to extend the leases for up to five five-year terms. Some leases have fixed rent payments that have escalations based on certain indices, such as the CPI. Certain leases contain variable payments.

PSEG Power

PSEG Power has operating leases for buildings, land leases for its solar generating facilities, merchant transmission and equipment. These leases have remaining terms through 2055, some of which include options to extend the leases for up to seven five-year terms and certain other leases which include options to extend the leases for 15 to 20 year terms. Some leases have fixed rent payments that have escalations based on certain indices, such as the CPI. Certain leases contain variable payments.

Other

Services has operating leases for real estate and office equipment. These leases have remaining terms through 2030. Services’ lease for its headquarters, which ends in 2030, includes options to extend for two five-year terms.

Operating Lease Costs

The following amounts relate to total operating lease costs, including both amounts recognized in the Consolidated Statements of Operations during the years ended December 31, 2020 and 2019 and any amounts capitalized as part of the cost of another asset, and the cash flows arising from lease transactions.

	PSE&G			PSEG Power			Other			Total
	Millions
Operating Lease Costs
Year Ended December 31, 2020
Long-term Lease Costs	$	26		$	14		$	14		$	54
Short-term Lease Costs	38			7			—			45
Variable Lease Costs	2			20			9			31
Total Operating Lease Costs	$	66		$	41		$	23		$	130
Year Ended December 31, 2020
Cash Paid for Amounts Included in the Measurement of Operating Lease Liabilities	$	17		$	14		$	14		$	45
Weighted Average Remaining Lease Term in Years	12			14			10			11
Weighted Average Discount Rate	3.5		%	4.5		%	4.2		%	4.0		%

	PSE&G			PSEG Power			Other			Total
	Millions
Operating Lease Costs
Year Ended December 31, 2019
Long-term Lease Costs	$	24		$	13		$	15		$	52
Short-term Lease Costs	14			10			—			24
Variable Lease Costs	2			10			10			22
Total Operating Lease Costs	$	40		$	33		$	25		$	98
Year Ended December 31, 2019
Cash Paid for Amounts Included in the Measurement of Operating Lease Liabilities	$	16		$	11		$	15		$	42
Weighted Average Remaining Lease Term in Years	13			14			10			12
Weighted Average Discount Rate	3.6		%	4.4		%	4.2		%	4.1		%

Operating lease liabilities as of December 31, 2020 had the following maturities on an undiscounted basis:

	PSE&G		PSEG Power		Other		Total
	Millions
2021	$	16	$	14	$	15	$	45
2022	13		14		15		42
2023	11		8		15		34
2024	10		3		15		28
2025	8		3		15		26
Thereafter	69		47		75		191
Total Minimum Lease Payments	$	127	$	89	$	150	$	366

The following is a reconciliation of the undiscounted cash flows to the discounted Operating Lease Liabilities recognized on the Consolidated Balance Sheets:

	As of December 31, 2020
	PSE&G		PSEG Power		Other		Total
	Millions
Undiscounted Cash Flows	$	127	$	89	$	150	$	366
Reconciling Amount due to Discount Rate	(26)		(27)		(27)		(80)
Total Discounted Operating Lease Liabilities	$	101	$	62	$	123	$	286
	As of December 31, 2019
	PSE&G		PSEG Power		Other		Total
	Millions
Undiscounted Cash Flows	$	126	$	100	$	168	$	394
Reconciling Amount due to Discount Rate	(27)		(28)		(33)		(88)
Total Discounted Operating Lease Liabilities	$	99	$	72	$	135	$	306

As of December 31, 2020, the current portions of Operating Lease Liabilities included in Other Current Liabilities were $34 million, $13 million and $11 million for PSEG, PSE&G and PSEG Power, respectively. As of December 31, 2019, the current portions of Operating Lease Liabilities included in Other Current Liabilities were $33 million, $12 million and $10 million for PSEG, PSE&G and PSEG Power, respectively.

Lessor

PSEG Power

Certain of PSEG Power’s sales agreements related to its solar generating plants qualify as operating leases with remaining terms through 2043 with no extension terms. Lease income is based on solar energy generation; therefore, all rental income is variable under these leases. As of December 31, 2020, PSEG Power’s solar generating plants subject to these leases had a total carrying value of $376 million.

Other

Energy Holdings is the lessor in leveraged leases. See Note 9. Long-Term Investments and Note 10. Financing Receivables.

Energy Holdings is the lessor in two operating leases for domestic energy generation facilities with remaining terms through 2036, one of which has an optional renewal period. As of December 31, 2020, Energy Holdings’ property subject to these leases had a total carrying value of $83 million.

Energy Holdings was previously the lessor in operating leases for real estate assets which were sold in March 2020.

The following is the operating lease income for PSEG Power and Energy Holdings for the years ended December 31, 2020 and 2019:

	PSEG Power		Energy Holdings		Total
	Millions
Operating Lease Income
Year Ended December 31, 2020
Fixed Lease Income	$	—	$	15	$	15
Variable Lease Income	26		—		26
Total Operating Lease Income	$	26	$	15	$	41
Year Ended December 31, 2019
Fixed Lease Income	$	—	$	22	$	22
Variable Lease Income	23		—		23
Total Operating Lease Income	$	23	$	22	$	45

Energy Holdings’ operating leases had the following minimum future fixed lease receipts as of December 31, 2020:

	Millions
2021	$	14
2022	14
2023	14
2024	14
2025	14
Thereafter	227
Total Minimum Future Lease Receipts	$	297

PSEG Power LLC

Leases

Leases

As of December 31, 2020, PSEG and its subsidiaries were both a lessee and a lessor in operating leases.

Lessee

PSE&G

PSE&G has operating leases for office space for customer service centers, rooftops and land for its Solar 4 All® facilities, equipment, vehicles and land for certain electric substations. These leases have remaining lease terms through 2040, some of which include options to extend the leases for up to five five-year terms. Some leases have fixed rent payments that have escalations based on certain indices, such as the CPI. Certain leases contain variable payments.

PSEG Power

PSEG Power has operating leases for buildings, land leases for its solar generating facilities, merchant transmission and equipment. These leases have remaining terms through 2055, some of which include options to extend the leases for up to seven five-year terms and certain other leases which include options to extend the leases for 15 to 20 year terms. Some leases have fixed rent payments that have escalations based on certain indices, such as the CPI. Certain leases contain variable payments.

Other

Services has operating leases for real estate and office equipment. These leases have remaining terms through 2030. Services’ lease for its headquarters, which ends in 2030, includes options to extend for two five-year terms.

Operating Lease Costs

The following amounts relate to total operating lease costs, including both amounts recognized in the Consolidated Statements of Operations during the years ended December 31, 2020 and 2019 and any amounts capitalized as part of the cost of another asset, and the cash flows arising from lease transactions.

	PSE&G			PSEG Power			Other			Total
	Millions
Operating Lease Costs
Year Ended December 31, 2020
Long-term Lease Costs	$	26		$	14		$	14		$	54
Short-term Lease Costs	38			7			—			45
Variable Lease Costs	2			20			9			31
Total Operating Lease Costs	$	66		$	41		$	23		$	130
Year Ended December 31, 2020
Cash Paid for Amounts Included in the Measurement of Operating Lease Liabilities	$	17		$	14		$	14		$	45
Weighted Average Remaining Lease Term in Years	12			14			10			11
Weighted Average Discount Rate	3.5		%	4.5		%	4.2		%	4.0		%

	PSE&G			PSEG Power			Other			Total
	Millions
Operating Lease Costs
Year Ended December 31, 2019
Long-term Lease Costs	$	24		$	13		$	15		$	52
Short-term Lease Costs	14			10			—			24
Variable Lease Costs	2			10			10			22
Total Operating Lease Costs	$	40		$	33		$	25		$	98
Year Ended December 31, 2019
Cash Paid for Amounts Included in the Measurement of Operating Lease Liabilities	$	16		$	11		$	15		$	42
Weighted Average Remaining Lease Term in Years	13			14			10			12
Weighted Average Discount Rate	3.6		%	4.4		%	4.2		%	4.1		%

Operating lease liabilities as of December 31, 2020 had the following maturities on an undiscounted basis:

	PSE&G		PSEG Power		Other		Total
	Millions
2021	$	16	$	14	$	15	$	45
2022	13		14		15		42
2023	11		8		15		34
2024	10		3		15		28
2025	8		3		15		26
Thereafter	69		47		75		191
Total Minimum Lease Payments	$	127	$	89	$	150	$	366

The following is a reconciliation of the undiscounted cash flows to the discounted Operating Lease Liabilities recognized on the Consolidated Balance Sheets:

	As of December 31, 2020
	PSE&G		PSEG Power		Other		Total
	Millions
Undiscounted Cash Flows	$	127	$	89	$	150	$	366
Reconciling Amount due to Discount Rate	(26)		(27)		(27)		(80)
Total Discounted Operating Lease Liabilities	$	101	$	62	$	123	$	286
	As of December 31, 2019
	PSE&G		PSEG Power		Other		Total
	Millions
Undiscounted Cash Flows	$	126	$	100	$	168	$	394
Reconciling Amount due to Discount Rate	(27)		(28)		(33)		(88)
Total Discounted Operating Lease Liabilities	$	99	$	72	$	135	$	306

As of December 31, 2020, the current portions of Operating Lease Liabilities included in Other Current Liabilities were $34 million, $13 million and $11 million for PSEG, PSE&G and PSEG Power, respectively. As of December 31, 2019, the current portions of Operating Lease Liabilities included in Other Current Liabilities were $33 million, $12 million and $10 million for PSEG, PSE&G and PSEG Power, respectively.

Lessor

PSEG Power

Certain of PSEG Power’s sales agreements related to its solar generating plants qualify as operating leases with remaining terms through 2043 with no extension terms. Lease income is based on solar energy generation; therefore, all rental income is variable under these leases. As of December 31, 2020, PSEG Power’s solar generating plants subject to these leases had a total carrying value of $376 million.

Other

Energy Holdings is the lessor in leveraged leases. See Note 9. Long-Term Investments and Note 10. Financing Receivables.

Energy Holdings is the lessor in two operating leases for domestic energy generation facilities with remaining terms through 2036, one of which has an optional renewal period. As of December 31, 2020, Energy Holdings’ property subject to these leases had a total carrying value of $83 million.

Energy Holdings was previously the lessor in operating leases for real estate assets which were sold in March 2020.

The following is the operating lease income for PSEG Power and Energy Holdings for the years ended December 31, 2020 and 2019:

	PSEG Power		Energy Holdings		Total
	Millions
Operating Lease Income
Year Ended December 31, 2020
Fixed Lease Income	$	—	$	15	$	15
Variable Lease Income	26		—		26
Total Operating Lease Income	$	26	$	15	$	41
Year Ended December 31, 2019
Fixed Lease Income	$	—	$	22	$	22
Variable Lease Income	23		—		23
Total Operating Lease Income	$	23	$	22	$	45

Energy Holdings’ operating leases had the following minimum future fixed lease receipts as of December 31, 2020:

	Millions
2021	$	14
2022	14
2023	14
2024	14
2025	14
Thereafter	227
Total Minimum Future Lease Receipts	$	297

Leases

Leases

As of December 31, 2020, PSEG and its subsidiaries were both a lessee and a lessor in operating leases.

Lessee

PSE&G

PSE&G has operating leases for office space for customer service centers, rooftops and land for its Solar 4 All® facilities, equipment, vehicles and land for certain electric substations. These leases have remaining lease terms through 2040, some of which include options to extend the leases for up to five five-year terms. Some leases have fixed rent payments that have escalations based on certain indices, such as the CPI. Certain leases contain variable payments.

PSEG Power

PSEG Power has operating leases for buildings, land leases for its solar generating facilities, merchant transmission and equipment. These leases have remaining terms through 2055, some of which include options to extend the leases for up to seven five-year terms and certain other leases which include options to extend the leases for 15 to 20 year terms. Some leases have fixed rent payments that have escalations based on certain indices, such as the CPI. Certain leases contain variable payments.

Other

Services has operating leases for real estate and office equipment. These leases have remaining terms through 2030. Services’ lease for its headquarters, which ends in 2030, includes options to extend for two five-year terms.

Operating Lease Costs

The following amounts relate to total operating lease costs, including both amounts recognized in the Consolidated Statements of Operations during the years ended December 31, 2020 and 2019 and any amounts capitalized as part of the cost of another asset, and the cash flows arising from lease transactions.

	PSE&G			PSEG Power			Other			Total
	Millions
Operating Lease Costs
Year Ended December 31, 2020
Long-term Lease Costs	$	26		$	14		$	14		$	54
Short-term Lease Costs	38			7			—			45
Variable Lease Costs	2			20			9			31
Total Operating Lease Costs	$	66		$	41		$	23		$	130
Year Ended December 31, 2020
Cash Paid for Amounts Included in the Measurement of Operating Lease Liabilities	$	17		$	14		$	14		$	45
Weighted Average Remaining Lease Term in Years	12			14			10			11
Weighted Average Discount Rate	3.5		%	4.5		%	4.2		%	4.0		%

	PSE&G			PSEG Power			Other			Total
	Millions
Operating Lease Costs
Year Ended December 31, 2019
Long-term Lease Costs	$	24		$	13		$	15		$	52
Short-term Lease Costs	14			10			—			24
Variable Lease Costs	2			10			10			22
Total Operating Lease Costs	$	40		$	33		$	25		$	98
Year Ended December 31, 2019
Cash Paid for Amounts Included in the Measurement of Operating Lease Liabilities	$	16		$	11		$	15		$	42
Weighted Average Remaining Lease Term in Years	13			14			10			12
Weighted Average Discount Rate	3.6		%	4.4		%	4.2		%	4.1		%

Operating lease liabilities as of December 31, 2020 had the following maturities on an undiscounted basis:

	PSE&G		PSEG Power		Other		Total
	Millions
2021	$	16	$	14	$	15	$	45
2022	13		14		15		42
2023	11		8		15		34
2024	10		3		15		28
2025	8		3		15		26
Thereafter	69		47		75		191
Total Minimum Lease Payments	$	127	$	89	$	150	$	366

The following is a reconciliation of the undiscounted cash flows to the discounted Operating Lease Liabilities recognized on the Consolidated Balance Sheets:

	As of December 31, 2020
	PSE&G		PSEG Power		Other		Total
	Millions
Undiscounted Cash Flows	$	127	$	89	$	150	$	366
Reconciling Amount due to Discount Rate	(26)		(27)		(27)		(80)
Total Discounted Operating Lease Liabilities	$	101	$	62	$	123	$	286
	As of December 31, 2019
	PSE&G		PSEG Power		Other		Total
	Millions
Undiscounted Cash Flows	$	126	$	100	$	168	$	394
Reconciling Amount due to Discount Rate	(27)		(28)		(33)		(88)
Total Discounted Operating Lease Liabilities	$	99	$	72	$	135	$	306

As of December 31, 2020, the current portions of Operating Lease Liabilities included in Other Current Liabilities were $34 million, $13 million and $11 million for PSEG, PSE&G and PSEG Power, respectively. As of December 31, 2019, the current portions of Operating Lease Liabilities included in Other Current Liabilities were $33 million, $12 million and $10 million for PSEG, PSE&G and PSEG Power, respectively.

Lessor

PSEG Power

Certain of PSEG Power’s sales agreements related to its solar generating plants qualify as operating leases with remaining terms through 2043 with no extension terms. Lease income is based on solar energy generation; therefore, all rental income is variable under these leases. As of December 31, 2020, PSEG Power’s solar generating plants subject to these leases had a total carrying value of $376 million.

Other

Energy Holdings is the lessor in leveraged leases. See Note 9. Long-Term Investments and Note 10. Financing Receivables.

Energy Holdings is the lessor in two operating leases for domestic energy generation facilities with remaining terms through 2036, one of which has an optional renewal period. As of December 31, 2020, Energy Holdings’ property subject to these leases had a total carrying value of $83 million.

Energy Holdings was previously the lessor in operating leases for real estate assets which were sold in March 2020.

The following is the operating lease income for PSEG Power and Energy Holdings for the years ended December 31, 2020 and 2019:

	PSEG Power		Energy Holdings		Total
	Millions
Operating Lease Income
Year Ended December 31, 2020
Fixed Lease Income	$	—	$	15	$	15
Variable Lease Income	26		—		26
Total Operating Lease Income	$	26	$	15	$	41
Year Ended December 31, 2019
Fixed Lease Income	$	—	$	22	$	22
Variable Lease Income	23		—		23
Total Operating Lease Income	$	23	$	22	$	45

Energy Holdings’ operating leases had the following minimum future fixed lease receipts as of December 31, 2020:

	Millions
2021	$	14
2022	14
2023	14
2024	14
2025	14
Thereafter	227
Total Minimum Future Lease Receipts	$	297