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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020



2020	PSEG		PSE&G		PSEG Power		Energy Holdings
	Millions
Total Amount of Unrecognized Tax Benefits as of January 1, 2020	$	321	$	124	$	161	$	33
Increases as a Result of Positions Taken in a Prior Period	33		21		10		1
Decreases as a Result of Positions Taken in a Prior Period	(91)		(51)		(36)		(4)
Increases as a Result of Positions Taken during the Current Period	—		—		—		—
Decreases as a Result of Positions Taken during the Current Period	—		—		—		—
Decreases as a Result of Settlements with Taxing Authorities	(116)		(64)		(52)		—
Decreases due to Lapses of Applicable Statute of Limitations	—		—		—		—
Total Amount of Unrecognized Tax Benefits as of December 31, 2020	$	147	$	30	$	83	$	30
Accumulated Deferred Income Taxes Associated with Unrecognized Tax Benefits	(69)		(12)		(49)		(8)
Regulatory Asset—Unrecognized Tax Benefits	(15)		(15)		—		—
Total Amount of Unrecognized Tax Benefits that if Recognized, would Impact the Effective Tax Rate (including Interest and Penalties)	$	63	$	3	$	34	$	22



2019	PSEG		PSE&G		PSEG Power		Energy Holdings
	Millions
Total Amount of Unrecognized Tax Benefits as of January 1, 2019	$	318	$	108	$	151	$	54
Increases as a Result of Positions Taken in a Prior Period	17		5		8		5
Decreases as a Result of Positions Taken in a Prior Period	(37)		(1)		(13)		(22)
Increases as a Result of Positions Taken during the Current Period	27		12		15		—
Decreases as a Result of Positions Taken during the Current Period	—		—		—		—
Decreases as a Result of Settlements with Taxing Authorities	(4)		—		—		(4)
Decreases due to Lapses of Applicable Statute of Limitations	—		—		—		—
Total Amount of Unrecognized Tax Benefits as of December 31, 2019	$	321	$	124	$	161	$	33
Accumulated Deferred Income Taxes Associated with Unrecognized Tax Benefits	(184)		(71)		(105)		(7)
Regulatory Asset—Unrecognized Tax Benefits	(46)		(46)		—		—
Total Amount of Unrecognized Tax Benefits that if Recognized, would Impact the Effective Tax Rate (including Interest and Penalties)	$	91	$	7	$	56	$	26



2018	PSEG		PSE&G		PSEG Power		Energy Holdings
	Millions
Total Amount of Unrecognized Tax Benefits as of January 1, 2018	$	334	$	135	$	142	$	53
Increases as a Result of Positions Taken in a Prior Period	11		4		4		3
Decreases as a Result of Positions Taken in a Prior Period	(70)		(31)		(37)		(2)
Increases as a Result of Positions Taken during the Current Period	52		3		48		—
Decreases as a Result of Positions Taken during the Current Period	(3)		(3)		—		—
Decreases as a Result of Settlements with Taxing Authorities	(6)		—		(6)		—
Decreases due to Lapses of Applicable Statute of Limitations	—		—		—		—
Total Amount of Unrecognized Tax Benefits as of December 31, 2018	$	318	$	108	$	151	$	54
Accumulated Deferred Income Taxes Associated with Unrecognized Tax Benefits	(173)		(57)		(104)		(12)
Regulatory Asset—Unrecognized Tax Benefits	(46)		(46)		—		—
Total Amount of Unrecognized Tax Benefits that if Recognized, would Impact the Effective Tax Rate (including Interest and Penalties)	$	99	$	5	$	47	$	42

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,
	2020		2019		2018
	Millions
PSEG	$	29	$	40	$	43
PSE&G	$	9	$	16	$	12
PSEG Power	$	5	$	12	$	9
Energy Holdings	$	15	$	13	$	22

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	$	12
PSE&G	$	12
PSEG Power	$	—

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

PSEG Power

United States

Federal

2017-2019

N/A

New Jersey

2011-2019

N/A

Pennsylvania

2017-2019

N/A

Connecticut

2016-2019

N/A

Maryland

2017-2019

N/A

New York

2017-2019

N/A

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 21% is as follows:



	Years Ended December 31,
PSEG	2020			2019			2018
	Millions
Net Income	$	1,905		$	1,693		$	1,438
Income Taxes:
Operating Income:
Current (Benefit) Expense:
Federal	$	385		$	84		$	(97)
State	48			18			83
Total Current	433			102			(14)
Deferred Expense (Benefit):
Federal	(164)			3			373
State	141			132			71
Total Deferred	(23)			135			444
ITC	(14)			20			(13)
Total Income Tax Expense (Benefit)	$	396		$	257		$	417
Pre-Tax Income	$	2,301		$	1,950		$	1,855
Tax Computed at Statutory Rate @ 21%	$	483		$	410		$	390
Increase (Decrease) Attributable to Flow-Through of Certain Tax Adjustments:
State Income Taxes (net of federal income tax)	147			117			123
Uncertain Tax Positions	3			—			(24)
NDT Fund	32			34			(13)
Plant-Related Items	(9)			(2)			(10)
Tax Credits	(18)			(18)			(16)
Audit Settlement	(27)			—			—
Leasing Activities	(35)			—			—
Tax Adjustment Credit	(205)			(272)			(30)
Deferred Tax Expense (Benefit) - Tax Act	—			—			3
Bad Debt Flow-Through	28			—			—
Other	(3)			(12)			(6)
Subtotal	(87)			(153)			27
Total Income Tax Expense (Benefit)	$	396		$	257		$	417
Effective Income Tax Rate	17.2		%	13.2		%	22.5		%

Deferred Income Taxes

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



	As of December 31,
PSEG	2020		2019
	Millions
Deferred Income Taxes
Assets:
Noncurrent:
Regulatory Liability Excess Deferred Tax	$	485	$	539
OPEB	135		151
Related to Uncertain Tax Positions	29		97
Interest Disallowance Carry Forward	39		76
Operating Leases	60		64
Other	170		128
Total Noncurrent Assets	$	918	$	1,055

Liabilities:
Noncurrent:
Plant-Related Items	$	5,163	$	5,051
New Jersey Corporate Business Tax	1,016		876
Leasing Activities	133		284
AROs and NDT Fund	324		277
Taxes Recoverable Through Future Rates (net)	114		108
Pension Costs	97		98
Operating Leases	55		59
Other	247		273
Total Noncurrent Liabilities	$	7,149	$	7,026
Summary of Accumulated Deferred Income Taxes:
Net Noncurrent Deferred Income Tax Liabilities	$	6,231	$	5,971
ITC	271		285
Net Total Noncurrent Deferred Income Taxes and ITC	$	6,502	$	6,256

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.

Public Service Electric and Gas Company

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 21% is as follows:



	Years Ended December 31,
PSE&G	2020			2019			2018
	Millions
Net Income	$	1,327		$	1,250		$	1,067
Income Taxes:
Operating Income:
Current (Benefit) Expense:
Federal	$	179		$	121		$	(62)
State	8			—			1
Total Current	187			121			(61)
Deferred Expense (Benefit):
Federal	(71)			(156)			287
State	128			117			122
Total Deferred	57			(39)			409
ITC	(4)			11			(4)
Total Income Tax Expense	$	240		$	93		$	344
Pre-Tax Income	$	1,567		$	1,343		$	1,411
Tax Computed at Statutory Rate @ 21%	$	329		$	282		$	296
Increase (Decrease) Attributable to Flow-Through of Certain Tax Adjustments:
State Income Taxes (net of federal income tax)	106			92			98
Uncertain Tax Positions	4			1			(1)
Plant-Related Items	(9)			(2)			(10)
Tax Credits	(9)			(8)			(8)
Audit Settlement	(2)			—			—
Tax Adjustment Credit	(205)			(272)			(30)
Bad Debt Flow-Through	28			—			—
Other	(2)			—			(1)
Subtotal	(89)			(189)			48
Total Income Tax Expense	$	240		$	93		$	344
Effective Income Tax Rate	15.3		%	6.9		%	24.4		%

Deferred Income Taxes

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



	As of December 31,
PSE&G	2020		2019
	Millions
Deferred Income Taxes
Assets:
Noncurrent:
Regulatory Liability Excess Deferred Tax	$	485	$	539
OPEB	82		97
Related to Uncertain Tax Positions	—		42
Operating Leases	21		21
Other	92		55
Total Noncurrent Assets	$	680	$	754
Liabilities:
Noncurrent:
Plant-Related Items	$	3,874	$	3,754
New Jersey Corporate Business Tax	721		588
Pension Costs	166		160
Taxes Recoverable Through Future Rates (net)	114		108
Conservation Costs	61		44
Operating Leases	21		21
Related to Uncertain Tax Positions	5		—
Other	161		183
Total Noncurrent Liabilities	$	5,123	$	4,858
Summary of Accumulated Deferred Income Taxes:
Net Noncurrent Deferred Income Tax Liabilities	$	4,443	$	4,104
ITC	81		85
Net Total Noncurrent Deferred Income Taxes and ITC	$	4,524	$	4,189

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.

PSEG Power LLC

Income Taxes [Line Items]

Schedule of Effective Income Tax Rate Reconciliation

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



	Years Ended December 31,
PSEG Power	2020			2019			2018
	Millions
Net Income	$	594		$	468		$	365
Income Taxes:
Operating Income:
Current (Benefit) Expense:
Federal	$	135		$	(48)		$	(164)
State	(7)			3			24
Total Current	128			(45)			(140)
Deferred Expense (Benefit):
Federal	39			208			214
State	31			31			1
Total Deferred	70			239			215
ITC	(10)			9			(9)
Total Income Tax Expense (Benefit)	$	188		$	203		$	66
Pre-Tax Income	$	782		$	671		$	431
Tax Computed at Statutory Rate @ 21%	$	164		$	141		$	91
Increase (Decrease) Attributable to Flow-Through of Certain Tax Adjustments:
State Income Taxes (net of federal income tax)	18			25			21
NDT Fund	32			34			(13)
Tax Credits	(9)			(10)			(7)
Uncertain Tax Positions	5			11			(24)
Audit Settlement	(21)			—			—
Deferred Tax Benefit - Tax Act	—			—			(1)
Other	(1)			2			(1)
Subtotal	24			62			(25)
Total Income Tax Expense (Benefit)	$	188		$	203		$	66
Effective Income Tax Rate	24.0		%	30.3		%	15.3		%

Deferred Income Taxes

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



	As of December 31,
PSEG Power	2020		2019
	Millions
Deferred Income Taxes
Assets:
Noncurrent:
Related to Uncertain Tax Positions	$	38	$	72
Pension Costs	68		61
OPEB	41		40
Operating Leases	13		15
Interest Disallowance Carry Forward	6		12
Contractual Liabilities & Environmental Costs	6		7
Other	36		30
Total Noncurrent Assets	$	208	$	237
Liabilities:
Noncurrent:
Plant-Related Items	$	1,286	$	1,292
New Jersey Corporate Business Tax	308		282
AROs and NDT Fund	325		278
Operating Leases	13		15
Other	21		45
Total Noncurrent Liabilities	$	1,953	$	1,912
Summary of Accumulated Deferred Income Taxes:
Net Noncurrent Deferred Income Tax Liabilities	$	1,745	$	1,675
ITC	191		201
Net Total Noncurrent Deferred Income Taxes and ITC	$	1,936	$	1,876