Income Taxes (Tables)

12 Months Ended

Dec. 31, 2011

2011	PSEG			Power			PSE&G			Energy Holdings
	Millions
Total Amount of Unrecognized Tax Benefits at 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	)		0			(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	)		0
Decreases as a Result of Settlements with Taxing Authorities		0			0			0			0
Decreases due to Lapses of Applicable Statute of Limitations		0			0			0			0

Total Amount of Unrecognized Tax Benefits at 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	)		0			(20	)		0

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 at 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	)		0			0
Decreases as a Result of Settlements with Taxing Authorities		0			0			0			0
Decreases due to Lapses of Applicable Statute of Limitations		0			0			0			0

Total Amount of Unrecognized Tax Benefits at 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	)		0			(16	)		0

Total Amount of Unrecognized Tax Benefits that if Recognized, would Impact the Effective Tax Rate (including Interest and Penalties)	$	408		$	34		$	28		$	335


2009	PSEG			Power			PSE&G			Energy Holdings
	Millions
Total Amount of Unrecognized Tax Benefits at January 1, 2009	$	1,403		$	30		$	27		$	1,323
Increases as a Result of Positions Taken in a Prior Period		37			1			8			26
Decreases as a Result of Positions Taken in a Prior Period		(580	)		(39	)		(9	)		(530	)
Increases as a Result of Positions Taken during the Current Period		15			1			10			4
Decreases as a Result of Positions Taken during the Current Period		(19	)		(18	)		(1	)		0
Decreases as a Result of Settlements with Taxing Authorities		(5	)		(5	)		0			0
Decreases due to Lapses of Applicable Statute of Limitations		(15	)		(12	)		0			(3	)

Total Amount of Unrecognized Tax Benefits at December 31, 2009	$	836		$	(42	)	$	35		$	820

Accumulated Deferred Income Taxes Associated with Unrecognized Tax Benefits		(508	)		37			22			(551	)
Regulatory Asset—Unrecognized Tax Benefits		(55	)		0			(55	)		0

Total Amount of Unrecognized Tax Benefits that if Recognized, would Impact the Effective Tax Rate (including Interest and Penalties)

Interest And Penalties Related To Uncertain Tax Positions


	Interest and Penalties on Uncertain Tax Positions Years Ended December 31,
	2011			2010			2009
	Millions
Power	$	(11	)	$	(17	)	$	(2	)
PSE&G		(24	)		(20	)		(22	)
Energy Holdings		420			407			370
Other		10			9			8

Total	$	395		$	379		$	354

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	$	579
Power	$	64
PSE&G	$	27

Description Of Income Tax Years By Material Jurisdictions

PSEG

Power

PSE&G

United States

Federal

2007-2010

New Jersey

2006-2010

N/A

2006-2010

Pennsylvania

2009-2010

N/A

2008-2010

Connecticut

2007-2010

N/A

Texas

2007-2010

N/A

California

2003-2010

N/A

New York

2004-2010

N/A

PSEG [Member]

Reconciliation Of Reported Income Tax Expense


	For the Years Ended December 31,
	2011			2010			2009
	Millions
Net Income	$	1,503		$	1,564		$	1,592
Income (Loss) from Discontinued Operations, including Gain on Disposal, net of tax benefit		96			7			(2	)

Income from Continuing Operations		1,407			1,557			1,594
Preferred Dividends		0			(1	)		(4	)

Income from Continuing Operations, excluding Preferred Dividends	$	1,407		$	1,558		$	1,598

Income Taxes:
Operating Income:
Current Expense:
Federal	$	258		$	(166	)	$	560
State		32			157			257

Total Current		290			(9	)		817

Deferred Expense:
Federal		501			992			178
State		191			79			44

Total Deferred		692			1,071			222

Investment Tax Credit		(5	)		(3	)		3

Total Income Taxes	$	977		$	1,059		$	1,042

Pre-Tax Income	$	2,384		$	2,617		$	2,640

Tax Computed at Statutory Rate @ 35%	$	834		$	916		$	924
Increase (Decrease) Attributable to Flow-Through of Certain Tax Adjustments:
State Income Taxes (net of federal income tax)		146			154			201
Uncertain Tax Positions		19			30			(73	)
Manufacturing Deduction		(15	)		(24	)		(7	)
Nuclear Decommissioning Trust		14			10			7
Plant-Related Items		(6	)		(3	)		3
Tax Credits		(5	)		(2	)		(3	)
Other		(10	)		(22	)		(10	)

Sub-Total		143			143			118

Total Income Tax Provision	$	977		$	1,059		$	1,042

Effective Income Tax Rate		41.0%			40.5%			39.5%

Deferred Income Taxes


	As of December 31,
	2011		2010
	Millions
Deferred Income Taxes
Assets:
Current (net)	$	0	$	43

Noncurrent:
Unrecovered Investment Tax Credit	$	15	$	18
Accumulated Other Comprehensive Income (Loss)		39		79
Cumulative Effect of a Change in Accounting Principle		11		11
New Jersey Corporate Business Tax		0		17
OPEB		208		197
Cost of Removal		51		51
Contractual Liabilities & Environmental Costs		35		35
MTC		26		47
Related to Uncertain Tax Positions		104		73
Other		44		58

Total Non-Current Assets	$	533	$	586

Total Assets	$	533	$	629

Liabilities:
Current (net)	$	170	$	0

Noncurrent:
Plant-Related Items		3,894		3,169
Nuclear Decommissioning		155		171
New Jersey Corporate Business Tax		180		0
Securitization		495		686
Leasing Activities		527		839
Partnership Activity		18		18
Conservation Costs		97		62
Energy Clause Recoveries		0		76
Pension Costs		129		189
AROs		302		287
Taxes Recoverable Through Future Rate (net)		158		158
Other		0		18

Total Noncurrent Liabilities	$	5,955	$	5,673

Total Liabilities	$	6,125	$	5,673

Summary of Accumulated Deferred Income Taxes:
Net Current Deferred Income Tax Assets	$	0	$	43

Net Current Deferred Income Tax Liability	$	170	$	0

Net Noncurrent Deferred Income Tax Liabilities	$	5,422	$	5,087
Investment Tax Credit (ITC)		36		42

Net Total Noncurrent Deferred Income Taxes and ITC	$	5,458	$	5,129

Power [Member]

Reconciliation Of Reported Income Tax Expense


	For the Years Ended December 31,
	2011			2010			2009
	Millions
Net Income	$	1,098		$	1,143		$	1,189
Income (Loss) from Discontinued Operations, net of tax		96			7			(2	)

Income from Continuing Operations	$	1,002		$	1,136		$	1,191

Income Taxes:
Operating Income:
Current Expense:
Federal	$	400		$	12		$	416
State		40			127			144

Total Current		440			139			560

Deferred Expense:
Federal		151			598			177
State		94			41			30

Total Deferred		245			639			207

Total Income Taxes	$	685		$	778		$	767

Pre-Tax Income	$	1,687		$	1,914		$	1,958

Tax Computed at Statutory Rate @ 35%	$	591		$	670		$	685
Increase (Decrease) Attributable to Flow-Through of Certain Tax Adjustments:
State Income Taxes (net of federal income tax)		87			109			113
Manufacturing Deduction		(15	)		(24	)		(7	)
Nuclear Decommissioning Trust		14			10			7
Uncertain Tax Positions		11			10			(26	)
Other		(3	)		3			(5	)

Sub-Total		94			108			82

Total Income Tax Provision	$	685		$	778		$	767

Effective Income Tax Rate		40.6%			40.6%			39.2%

Deferred Income Taxes


	As of December 31,
	2011		2010
	Millions
Deferred Income Taxes
Assets:
Noncurrent:
Cumulative Effect of a Change in Accounting Principle	$	11	$	11
New Jersey Corporate Business Tax		0		73
Pension Costs		53		12
Accumulated Other Comprehensive Income (Loss)		39		40
Cost of Removal		51		51
Contractual Liabilities & Environmental Costs		35		35
Related to Uncertain Tax Positions		4		0
Other		22		38

Total Noncurrent Assets	$	215	$	260

Total Assets	$	215	$	260

Liabilities:
Current (net)	$	53	$	64

Noncurrent:
Plant-Related Items	$	1,013	$	927
New Jersey Corporate Business Tax		7		0
Nuclear Decommissioning		155		171
AROs		302		287
Related to Uncertain Tax Positions		0		16

Total Noncurrent Liabilities	$	1,477	$	1,401

Total Liabilities	$	1,530	$	1,465

Summary of Accumulated Deferred Income Taxes:
Net Current Deferred Income Tax Liabilities	$	53	$	64

Net Noncurrent Deferred Income Tax Liabilities	$	1,262	$	1,141
Investment Tax Credit (ITC)		4		5

Net Total Noncurrent Deferred Income Taxes and ITC	$	1,266	$	1,146

PSE&G [Member]

Reconciliation Of Reported Income Tax Expense


	For the Years Ended December 31,
	2011			2010			2009
	Millions
Net Income	$	521		$	358		$	321
Preferred Dividends		0			(1	)		(4	)

Income from Continuing Operations, excluding Preferred Dividends	$	521		$	359		$	325

Income Taxes:
Operating Income:
Current Expense:
Federal	$	(225	)	$	(211	)	$	7
State		(6	)		(1	)		22

Total Current		(231	)		(212	)		29

Deferred Expense:
Federal		483			384			158
State		92			63			38

Total Deferred		575			447			196

Investment Tax Credit		(4	)		(3	)		1

Total Income Taxes	$	340		$	232		$	226

Pre-Tax Income	$	861		$	591		$	551

Tax Computed at Statutory Rate @ 35%	$	301		$	207		$	193
Increase (Decrease) Attributable to Flow-Through of Certain Tax Adjustments:
State Income Taxes (net of federal income tax)		56			40			39
Uncertain Tax Positions		(1	)		(1	)		(3	)
Plant-Related Items		(6	)		(3	)		3
Tax Credits		(4	)		(2	)		(3	)
Other		(6	)		(9	)		(3	)

Sub-Total		39			25			33

Total Income Tax Provision	$	340		$	232		$	226

Effective Income Tax Rate		39.5%			39.2%			41.0%

Deferred Income Taxes


	As of December 31,
	2011		2010
	Millions
Deferred Income Taxes
Assets:
Noncurrent:
Unrecovered ITC	$	10	$	12
OPEB		197		189
MTC		26		47
Related to Uncertain Tax Positions		30		24
Other		13		5

Total Noncurrent Assets	$	276	$	277

Total Assets	$	276	$	277

Liabilities:
Current (net)	$	32	$	19

Noncurrent:
Plant-Related Items	$	2,875	$	2,216
New Jersey Corporate Business Tax		146		0
Securitization		495		686
Conservation Costs		97		62
Energy Clause Recoveries		0		76
Pension Costs		151		172
Taxes Recoverable Through Future Rate (net)		158		158

Total Noncurrent Liabilities	$	3,922	$	3,370

Total Liabilities	$	3,954	$	3,389

Summary of Accumulated Deferred Income Taxes:
Net Current Deferred Income Tax Liability	$	32	$	19

Net Noncurrent Deferred Income Tax Liability	$	3,646	$	3,093
Investment Tax Credit (ITC)		29		34

Net Total Noncurrent Deferred Income Taxes and ITC	$	3,675	$	3,127