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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022



2022	PSEG		PSE&G
	Millions
Total Amount of Unrecognized Tax Benefits as of January 1, 2022	$	192	$	27
Increases as a Result of Positions Taken in a Prior Period	9		2
Decreases as a Result of Positions Taken in a Prior Period	(40)		(2)
Increases as a Result of Positions Taken during the Current Period	1		1
Decreases as a Result of Positions Taken during the Current Period	—		—
Decreases as a Result of Settlements with Taxing Authorities	(28)		—
Decreases due to Lapses of Applicable Statute of Limitations	(4)		1
Total Amount of Unrecognized Tax Benefits as of December 31, 2022	$	130	$	29
Accumulated Deferred Income Taxes Associated with Unrecognized Tax Benefits	(37)		(15)
Regulatory Asset—Unrecognized Tax Benefits	(8)		(8)
Total Amount of Unrecognized Tax Benefits that if Recognized, would Impact the Effective Tax Rate (including Interest and Penalties)	$	85	$	6



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

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,
	2022		2021		2020
	Millions
PSEG	$	38	$	31	$	29
PSE&G	$	8	$	9	$	9

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	$	12
PSE&G	$	11

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

2019-2021

N/A

New Jersey

2011-2021

Pennsylvania

2017-2021

2019-2021

Connecticut

2019-2021

N/A

Maryland

2019-2021

N/A

New York

2017-2021

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	2022			2021			2020
	Millions
Net Income (Loss)	$	1,031		$	(648)		$	1,905
Income Taxes:
Operating Income:
Current (Benefit) Expense:
Federal	$	262		$	407		$	385
State	(30)			(3)			48
Total Current	232			404			433
Deferred Expense (Benefit):
Federal	(335)			(700)			(164)
State	80			(136)			141
Total Deferred	(255)			(836)			(23)
ITC	(6)			(9)			(14)
Total Income Tax Expense (Benefit)	$	(29)		$	(441)		$	396
Pre-Tax Income (Loss)	$	1,002		$	(1,089)		$	2,301
Tax Computed at Statutory Rate @ 21%	$	210		$	(229)		$	483
Increase (Decrease) Attributable to Flow-Through of Certain Tax Adjustments:
State Income Taxes (net of federal income tax)	41			(109)			147
Uncertain Tax Positions	(22)			19			3
NDT Fund	(22)			23			32
Plant-Related Items	(6)			(7)			(9)
Tax Credits	(10)			29			(18)
Audit Settlement	—			(8)			(27)
Leasing Activities	—			(1)			(35)
GPRC-CEF-EE	(37)			(13)			—
TAC	(193)			(171)			(205)
Bad Debt Flow-Through	(1)			27			28
Other	11			(1)			(3)
Subtotal	(239)			(212)			(87)
Total Income Tax Expense (Benefit)	$	(29)		$	(441)		$	396
Effective Income Tax Rate	(2.9)		%	40.5		%	17.2		%

Deferred Income Taxes

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



	As of December 31,
PSEG	2022		2021
	Millions
Deferred Income Taxes
Assets:
Noncurrent:
Regulatory Liability Excess Deferred Tax	$	390	$	439
OPEB	74		107
Bad Debt	66		67
Related to Uncertain Tax Positions	1		30

Operating Leases	42		48
Other	378		253
Total Noncurrent Assets	$	951	$	944

Liabilities:
Noncurrent:
Plant-Related Items	$	4,663	$	4,701
New Jersey Corporate Business Tax	1,009		939
Leasing Activities	99		113
AROs and NDT Fund	161		270
Taxes Recoverable Through Future Rates (net)	149		120
Pension Costs	164		169
Operating Leases	37		43

Other	324		271
Total Noncurrent Liabilities	$	6,606	$	6,626
Summary of Accumulated Deferred Income Taxes:
Net Noncurrent Deferred Income Tax Liabilities	$	5,655	$	5,682
ITC	70		77
Net Total Noncurrent Deferred Income Taxes and ITC	$	5,725	$	5,759

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	2022			2021			2020
	Millions
Net Income	$	1,565		$	1,446		$	1,327
Income Taxes:
Operating Income:
Current (Benefit) Expense:
Federal	$	130		$	208		$	179
State	—			1			8
Total Current	130			209			187
Deferred Expense (Benefit):
Federal	(17)			(33)			(71)
State	159			153			128
Total Deferred	142			120			57
ITC	(5)			(5)			(4)
Total Income Tax Expense	$	267		$	324		$	240
Pre-Tax Income	$	1,832		$	1,770		$	1,567
Tax Computed at Statutory Rate @ 21%	$	385		$	372		$	329
Increase (Decrease) Attributable to Flow-Through of Certain Tax Adjustments:
State Income Taxes (net of federal income tax)	126			122			106
Uncertain Tax Positions	2			2			4
Plant-Related Items	(6)			(7)			(9)
Tax Credits	(9)			(8)			(9)
Audit Settlement	—			(1)			(2)
GPRC-CEF-EE	(37)			(13)			—
TAC	(193)			(171)			(205)
Bad Debt Flow-Through	(1)			27			28
Other	—			1			(2)
Subtotal	(118)			(48)			(89)
Total Income Tax Expense	$	267		$	324		$	240
Effective Income Tax Rate	14.6		%	18.3		%	15.3		%

Deferred Income Taxes

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



	As of December 31,
PSE&G	2022		2021
	Millions
Deferred Income Taxes
Assets:
Noncurrent:
Regulatory Liability Excess Deferred Tax	$	390	$	439
OPEB	42		61
Related to Uncertain Tax Positions	3		—
Bad Debt	66		67
Operating Leases	19		20
Other	53		57
Total Noncurrent Assets	$	573	$	644
Liabilities:
Noncurrent:
Plant-Related Items	$	4,174	$	4,006
New Jersey Corporate Business Tax	1,011		863
Pension Costs	195		180
Taxes Recoverable Through Future Rates (net)	149		120
Conservation Costs	81		75
Operating Leases	18		19
Related to Uncertain Tax Positions	—		1
Other	223		178
Total Noncurrent Liabilities	$	5,851	$	5,442
Summary of Accumulated Deferred Income Taxes:
Net Noncurrent Deferred Income Tax Liabilities	$	5,278	$	4,798
ITC	70		76
Net Total Noncurrent Deferred Income Taxes and ITC	$	5,348	$	4,874

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.