Income Taxes

6 Months Ended

Jun. 30, 2022

Income Taxes [Line Items]

Income Taxes

Income Taxes

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:

	Three Months Ended						Six Months Ended
PSEG	June 30,						June 30,
	2022			2021			2022			2021
	Millions
Pre-Tax Income (Loss)	$	98		$	(239)		$	(56)		$	526
Tax Computed at Statutory Rate @ 21%	$	21		$	(50)		$	(12)		$	110
Increase (Decrease) Attributable to Flow-Through of Certain Tax Adjustments:
State Income Taxes (net of federal income tax)	6			(24)			(22)			18
NDT Fund	(18)			9			(24)			18
GPRC-CEF-Energy Efficiency (EE)	(8)			(2)			(14)			(3)
Tax Credit Amortization/ITC Recapture	(2)			35			(4)			31
TAC	(32)			(40)			(106)			(118)
Other	—			10			(3)			(1)
Subtotal	(54)			(12)			(173)			(55)
Total Income Tax Expense (Benefit)	$	(33)		$	(62)		$	(185)		$	55
Effective Income Tax Rate	(33.7)		%	25.9		%	330.4		%	10.5		%

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:

	Three Months Ended						Six Months Ended
PSE&G	June 30,						June 30,
	2022			2021			2022			2021
	Millions
Pre-Tax Income	$	361		$	370		$	959		$	926
Tax Computed at Statutory Rate @ 21%	$	76		$	78		$	201		$	194
Increase (Decrease) Attributable to Flow-Through of Certain Tax Adjustments:
State Income Taxes (net of federal income tax)	25			25			67			63
GPRC-CEF-EE	(8)			(2)			(14)			(3)
TAC	(32)			(40)			(106)			(118)
Other	(5)			—			(3)			4
Subtotal	(20)			(17)			(56)			(54)
Total Income Tax Expense (Benefit)	$	56		$	61		$	145		$	140
Effective Income Tax Rate	15.5		%	16.5		%	15.1		%	15.1		%

A prolonged economic recovery can result in the enactment of additional federal and state tax legislation. Enactment of additional legislation and clarification of prior enacted tax laws could impact PSEG’s and PSE&G’s financial statements.

As of June 30, 2022, PSEG had a $59 million state net operating loss (NOL) and PSE&G had a $21 million state NOL that are both expected to be fully realized in the future.

Public Service Electric and Gas Company [Member]

Income Taxes [Line Items]

Income Taxes

Income Taxes

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:

	Three Months Ended						Six Months Ended
PSEG	June 30,						June 30,
	2022			2021			2022			2021
	Millions
Pre-Tax Income (Loss)	$	98		$	(239)		$	(56)		$	526
Tax Computed at Statutory Rate @ 21%	$	21		$	(50)		$	(12)		$	110
Increase (Decrease) Attributable to Flow-Through of Certain Tax Adjustments:
State Income Taxes (net of federal income tax)	6			(24)			(22)			18
NDT Fund	(18)			9			(24)			18
GPRC-CEF-Energy Efficiency (EE)	(8)			(2)			(14)			(3)
Tax Credit Amortization/ITC Recapture	(2)			35			(4)			31
TAC	(32)			(40)			(106)			(118)
Other	—			10			(3)			(1)
Subtotal	(54)			(12)			(173)			(55)
Total Income Tax Expense (Benefit)	$	(33)		$	(62)		$	(185)		$	55
Effective Income Tax Rate	(33.7)		%	25.9		%	330.4		%	10.5		%

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:

	Three Months Ended						Six Months Ended
PSE&G	June 30,						June 30,
	2022			2021			2022			2021
	Millions
Pre-Tax Income	$	361		$	370		$	959		$	926
Tax Computed at Statutory Rate @ 21%	$	76		$	78		$	201		$	194
Increase (Decrease) Attributable to Flow-Through of Certain Tax Adjustments:
State Income Taxes (net of federal income tax)	25			25			67			63
GPRC-CEF-EE	(8)			(2)			(14)			(3)
TAC	(32)			(40)			(106)			(118)
Other	(5)			—			(3)			4
Subtotal	(20)			(17)			(56)			(54)
Total Income Tax Expense (Benefit)	$	56		$	61		$	145		$	140
Effective Income Tax Rate	15.5		%	16.5		%	15.1		%	15.1		%

A prolonged economic recovery can result in the enactment of additional federal and state tax legislation. Enactment of additional legislation and clarification of prior enacted tax laws could impact PSEG’s and PSE&G’s financial statements.

As of June 30, 2022, PSEG had a $59 million state net operating loss (NOL) and PSE&G had a $21 million state NOL that are both expected to be fully realized in the future.