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Income Taxes
 9 Months Ended
Sep. 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 EndedNine Months Ended
PSEGSeptember 30,September 30,
2022202120222021
 Millions
Pre-Tax Income (Loss)$55 $(2,246)$(1)$(1,720)
Tax Computed at Statutory Rate @ 21% $12 $(472)$— $(361)
Increase (Decrease) Attributable to Flow-Through of Certain Tax Adjustments:
State Income Taxes (net of federal income tax)7 (160)(16)(142)
NDT Fund(10)(1)(34)17 
GPRC-CEF-EE(11)(3)(25)(6)
Tax Credit Amortization/ITC Recapture(2)(2)(6)29 
TAC(44)(57)(150)(175)
Other(11)13 (13)11 
Subtotal(71)(210)(244)(266)
Total Income Tax Expense (Benefit)$(59)$(682)$(244)$(627)
Effective Income Tax RateN/A30.4 %N/A36.5 %
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 EndedNine Months Ended
PSE&GSeptember 30,September 30,
2022202120222021
 Millions
Pre-Tax Income$468 $463 $1,427 $1,389 
Tax Computed at Statutory Rate @ 21% $98 $97 $300 $292 
Increase (Decrease) Attributable to Flow-Through of Certain Tax Adjustments:
State Income Taxes (net of federal income tax)32 33 99 96 
GPRC-CEF-EE(11)(3)(25)(6)
TAC(44)(57)(150)(175)
Other(6)4 (10)7 
Subtotal(29)(23)(86)(78)
Total Income Tax Expense (Benefit)$69 $74 $214 $214 
Effective Income Tax Rate14.7 %16.0 %15.0 %15.4 %
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.
In August 2022, the IRA was signed into law. The IRA made certain changes to energy tax credit law and enacted a new 15% book minimum tax, effective in 2023. Changes to the energy tax credit law include: increases to the PTC rate, a new PTC for electricity generation using nuclear energy, a new wage and apprenticeship requirement, expanded technologies that are eligible for energy tax credits, the transferability of the energy tax credits, and an enhanced credit if certain domestic content requirements are satisfied, such as sourcing steel and iron from the U.S. Many aspects of the IRA are unclear and in need of further guidance. Until additional guidance is issued, the impact of the IRA on PSEG’s and PSE&G’s financial statements is not determinable. See Note 4. Early Plant Retirements/Asset Dispositions and Impairments for additional information on the nuclear PTC.
As of September 30, 2022, PSEG had a $54 million state net operating loss (NOL) and PSE&G had a $25 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 EndedNine Months Ended
PSEGSeptember 30,September 30,
2022202120222021
 Millions
Pre-Tax Income (Loss)$55 $(2,246)$(1)$(1,720)
Tax Computed at Statutory Rate @ 21% $12 $(472)$— $(361)
Increase (Decrease) Attributable to Flow-Through of Certain Tax Adjustments:
State Income Taxes (net of federal income tax)7 (160)(16)(142)
NDT Fund(10)(1)(34)17 
GPRC-CEF-EE(11)(3)(25)(6)
Tax Credit Amortization/ITC Recapture(2)(2)(6)29 
TAC(44)(57)(150)(175)
Other(11)13 (13)11 
Subtotal(71)(210)(244)(266)
Total Income Tax Expense (Benefit)$(59)$(682)$(244)$(627)
Effective Income Tax RateN/A30.4 %N/A36.5 %
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 EndedNine Months Ended
PSE&GSeptember 30,September 30,
2022202120222021
 Millions
Pre-Tax Income$468 $463 $1,427 $1,389 
Tax Computed at Statutory Rate @ 21% $98 $97 $300 $292 
Increase (Decrease) Attributable to Flow-Through of Certain Tax Adjustments:
State Income Taxes (net of federal income tax)32 33 99 96 
GPRC-CEF-EE(11)(3)(25)(6)
TAC(44)(57)(150)(175)
Other(6)4 (10)7 
Subtotal(29)(23)(86)(78)
Total Income Tax Expense (Benefit)$69 $74 $214 $214 
Effective Income Tax Rate14.7 %16.0 %15.0 %15.4 %
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.
In August 2022, the IRA was signed into law. The IRA made certain changes to energy tax credit law and enacted a new 15% book minimum tax, effective in 2023. Changes to the energy tax credit law include: increases to the PTC rate, a new PTC for electricity generation using nuclear energy, a new wage and apprenticeship requirement, expanded technologies that are eligible for energy tax credits, the transferability of the energy tax credits, and an enhanced credit if certain domestic content requirements are satisfied, such as sourcing steel and iron from the U.S. Many aspects of the IRA are unclear and in need of further guidance. Until additional guidance is issued, the impact of the IRA on PSEG’s and PSE&G’s financial statements is not determinable. See Note 4. Early Plant Retirements/Asset Dispositions and Impairments for additional information on the nuclear PTC.
As of September 30, 2022, PSEG had a $54 million state net operating loss (NOL) and PSE&G had a $25 million state NOL that are both expected to be fully realized in the future.