XML 79 R57.htm IDEA: XBRL DOCUMENT

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021



2021	PSEG		PSE&G
	Millions
Total Amount of Unrecognized Tax Benefits as of January 1, 2021	$	147	$	30
Increases as a Result of Positions Taken in a Prior Period	58		8
Decreases as a Result of Positions Taken in a Prior Period	(19)		(12)
Increases as a Result of Positions Taken during the Current Period	6		1
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	—		—
Total Amount of Unrecognized Tax Benefits as of December 31, 2021	$	192	$	27
Accumulated Deferred Income Taxes Associated with Unrecognized Tax Benefits	(76)		(15)
Regulatory Asset—Unrecognized Tax Benefits	(7)		(7)
Total Amount of Unrecognized Tax Benefits that if Recognized, would Impact the Effective Tax Rate (including Interest and Penalties)	$	109	$	5



2020	PSEG		PSE&G
	Millions
Total Amount of Unrecognized Tax Benefits as of January 1, 2020	$	321	$	124
Increases as a Result of Positions Taken in a Prior Period	33		21
Decreases as a Result of Positions Taken in a Prior Period	(91)		(51)
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)
Decreases due to Lapses of Applicable Statute of Limitations	—		—
Total Amount of Unrecognized Tax Benefits as of December 31, 2020	$	147	$	30
Accumulated Deferred Income Taxes Associated with Unrecognized Tax Benefits	(69)		(12)
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

In April 2020, the Joint Committee on Taxation approved PSEG’s nuclear carryback claim and federal tax returns for the years 2011 and 2012. In June 2020, the federal income tax audits for years 2011 through 2016 and the nuclear carryback claim were concluded.



2019	PSEG		PSE&G
	Millions
Total Amount of Unrecognized Tax Benefits as of January 1, 2019	$	318	$	108
Increases as a Result of Positions Taken in a Prior Period	17		5
Decreases as a Result of Positions Taken in a Prior Period	(37)		(1)
Increases as a Result of Positions Taken during the Current Period	27		12
Decreases as a Result of Positions Taken during the Current Period	—		—
Decreases as a Result of Settlements with Taxing Authorities	(4)		—
Decreases due to Lapses of Applicable Statute of Limitations	—		—
Total Amount of Unrecognized Tax Benefits as of December 31, 2019	$	321	$	124
Accumulated Deferred Income Taxes Associated with Unrecognized Tax Benefits	(184)		(71)
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

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,
	2021		2020		2019
	Millions
PSEG	$	31	$	29	$	40
PSE&G	$	9	$	9	$	16

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 Decrease in Total Unrecognized Tax Benefits	Over the next 12 Months
	Millions
PSEG	$	25
PSE&G	$	15

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

United States

Federal

2017-2020

N/A

New Jersey

2011-2020

Pennsylvania

2017-2020

2018-2020

Connecticut

2018-2020

N/A

Maryland

2018-2020

N/A

New York

2017-2020

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	2021			2020			2019
	Millions
Net Income (Loss)	$	(648)		$	1,905		$	1,693
Income Taxes:
Operating Income:
Current (Benefit) Expense:
Federal	$	407		$	385		$	84
State	(3)			48			18
Total Current	404			433			102
Deferred Expense (Benefit):
Federal	(700)			(164)			3
State	(136)			141			132
Total Deferred	(836)			(23)			135
ITC	(9)			(14)			20
Total Income Tax Expense (Benefit)	$	(441)		$	396		$	257
Pre-Tax Income (Loss)	$	(1,089)		$	2,301		$	1,950
Tax Computed at Statutory Rate @ 21%	$	(229)		$	483		$	410
Increase (Decrease) Attributable to Flow-Through of Certain Tax Adjustments:
State Income Taxes (net of federal income tax)	(109)			147			117
Uncertain Tax Positions	19			3			—
NDT Fund	23			32			34
Plant-Related Items	(7)			(9)			(2)
Tax Credits	29			(18)			(18)
Audit Settlement	(8)			(27)			—
Leasing Activities	(1)			(35)			—
GPRC-CEF-EE	(13)			—			—
TAC	(171)			(205)			(272)
Bad Debt Flow-Through	27			28			—
Other	(1)			(3)			(12)
Subtotal	(212)			(87)			(153)
Total Income Tax Expense (Benefit)	$	(441)		$	396		$	257
Effective Income Tax Rate	40.5		%	17.2		%	13.2		%

Deferred Income Taxes

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



	As of December 31,
PSEG	2021		2020
	Millions
Deferred Income Taxes
Assets:
Noncurrent:
Regulatory Liability Excess Deferred Tax	$	439	$	485
OPEB	107		135
Bad Debt	67		40
Related to Uncertain Tax Positions	30		29
Interest Disallowance Carryforward	—		39
Operating Leases	48		60
Other	253		130
Total Noncurrent Assets	$	944	$	918

Liabilities:
Noncurrent:
Plant-Related Items	$	4,701	$	5,163
New Jersey Corporate Business Tax	939		1,016
Leasing Activities	113		133
AROs and NDT Fund	270		324
Taxes Recoverable Through Future Rates (net)	120		114
Pension Costs	169		97
Operating Leases	43		55
Other	271		247
Total Noncurrent Liabilities	$	6,626	$	7,149
Summary of Accumulated Deferred Income Taxes:
Net Noncurrent Deferred Income Tax Liabilities	$	5,682	$	6,231
ITC	77		271
Net Total Noncurrent Deferred Income Taxes and ITC	$	5,759	$	6,502

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	2021			2020			2019
	Millions
Net Income	$	1,446		$	1,327		$	1,250
Income Taxes:
Operating Income:
Current (Benefit) Expense:
Federal	$	208		$	179		$	121
State	1			8			—
Total Current	209			187			121
Deferred Expense (Benefit):
Federal	(33)			(71)			(156)
State	153			128			117
Total Deferred	120			57			(39)
ITC	(5)			(4)			11
Total Income Tax Expense	$	324		$	240		$	93
Pre-Tax Income	$	1,770		$	1,567		$	1,343
Tax Computed at Statutory Rate @ 21%	$	372		$	329		$	282
Increase (Decrease) Attributable to Flow-Through of Certain Tax Adjustments:
State Income Taxes (net of federal income tax)	122			106			92
Uncertain Tax Positions	2			4			1
Plant-Related Items	(7)			(9)			(2)
Tax Credits	(8)			(9)			(8)
Audit Settlement	(1)			(2)			—
GPRC-CEF-EE	(13)			—			—
TAC	(171)			(205)			(272)
Bad Debt Flow-Through	27			28			—
Other	1			(2)			—
Subtotal	(48)			(89)			(189)
Total Income Tax Expense	$	324		$	240		$	93
Effective Income Tax Rate	18.3		%	15.3		%	6.9		%

Deferred Income Taxes

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



	As of December 31,
PSE&G	2021		2020
	Millions
Deferred Income Taxes
Assets:
Noncurrent:
Regulatory Liability Excess Deferred Tax	$	439	$	485
OPEB	61		82
Bad Debt	67		40
Operating Leases	20		21
Other	57		52
Total Noncurrent Assets	$	644	$	680
Liabilities:
Noncurrent:
Plant-Related Items	$	4,006	$	3,874
New Jersey Corporate Business Tax	863		721
Pension Costs	180		166
Taxes Recoverable Through Future Rates (net)	120		114
Conservation Costs	75		61
Operating Leases	19		21
Related to Uncertain Tax Positions	1		5
Other	178		161
Total Noncurrent Liabilities	$	5,442	$	5,123
Summary of Accumulated Deferred Income Taxes:
Net Noncurrent Deferred Income Tax Liabilities	$	4,798	$	4,443
ITC	76		81
Net Total Noncurrent Deferred Income Taxes and ITC	$	4,874	$	4,524

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.