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Leases
 12 Months Ended
Dec. 31, 2023
Leases Leases
As of December 31, 2023, PSEG and its subsidiaries were both a lessee and a lessor in operating leases.
Lessee
PSE&G
PSE&G has operating leases for office space for customer service centers, rooftops and land for its Solar 4 All® facilities, equipment, vehicles and land for certain electric substations. These leases have remaining lease terms through 2040, some of which include options to extend the leases for up to four 5-year terms or one 10-year term; and two include options to extend the leases for one 45-year and one 48-year term, respectively. Some leases have fixed rent payments that have escalations based on certain indices, such as the CPI. Certain leases contain variable payments.
PSEG Power & Other
PSEG Power has operating leases for buildings and equipment. These leases have remaining terms through 2028, one of which includes an option to extend the lease for up to one 5-year term. One lease has fixed rent payments that has escalations based on the CPI. Certain leases contain variable payments.
Services has operating leases for real estate and office equipment. These leases have remaining terms through 2030. Services’ lease for its headquarters, which ends in 2030, includes options to extend for two 5-year terms.
Operating Lease Costs
The following amounts relate to total operating lease costs, including both amounts recognized in the Consolidated Statements of Operations during the years ended December 31, 2023, 2022 and 2021 and any amounts capitalized as part of the cost of another asset, and the cash flows arising from lease transactions.
PSE&GPSEG Power & OtherTotal
Millions
Operating Lease Costs
Year Ended December 31, 2023
  Long-term Lease Costs$34 $19 $53 
  Short-term Lease Costs21 6 27 
  Variable Lease Costs2 13 15 
Total Operating Lease Costs$57 $38 $95 
Year Ended December 31, 2023
Cash Paid for Amounts Included in the Measurement of Operating Lease Liabilities$17 $17 $34 
Weighted Average Remaining Lease Term in Years1078
Weighted Average Discount Rate4.0 %4.2 %4.1 %
PSE&GPSEG Power & OtherTotal
Millions
Operating Lease Costs
Year Ended December 31, 2022
  Long-term Lease Costs$31 $25 $56 
  Short-term Lease Costs21 5 26 
  Variable Lease Costs2 11 13 
Total Operating Lease Costs$54 $41 $95 
Year Ended December 31, 2022
Cash Paid for Amounts Included in the Measurement of Operating Lease Liabilities$17 $25 $42 
Weighted Average Remaining Lease Term in Years1179
Weighted Average Discount Rate3.5 %4.1 %3.9 %
PSE&GPSEG Power & OtherTotal
Millions
Operating Lease Costs
Year Ended December 31, 2021
  Long-term Lease Costs$24 $26 $50 
  Short-term Lease Costs36 6 42 
  Variable Lease Costs2 18 20 
Total Operating Lease Costs$62 $50 $112 
Year Ended December 31, 2021
Cash Paid for Amounts Included in the Measurement of Operating Lease Liabilities$17 $26 $43 
Weighted Average Remaining Lease Term in Years1289
Weighted Average Discount Rate3.4 %4.1 %3.8 %
Operating lease liabilities as of December 31, 2023 had the following maturities on an undiscounted basis:
PSE&GPSEG Power & OtherTotal
Millions
2024$18 $17 $35 
202515 17 32 
202613 16 29 
202712 17 29 
202810 16 26 
Thereafter57 28 85 
Total Minimum Lease Payments$125 $111 $236 
The following is a reconciliation of the undiscounted cash flows to the discounted Operating Lease Liabilities recognized on the Consolidated Balance Sheets:
As of December 31, 2023
PSE&GPSEG Power & OtherTotal
Millions
Undiscounted Cash Flows$125 $111 $236 
Reconciling Amount due to Discount Rate(21)(15)(36)
Total Discounted Operating Lease Liabilities$104 $96 $200 
As of December 31, 2022
PSE&GPSEG Power & OtherTotal
Millions
Undiscounted Cash Flows$109 $126 $235 
Reconciling Amount due to Discount Rate(20)(18)(38)
Total Discounted Operating Lease Liabilities$89 $108 $197 
As of December 31, 2023, the current portions of Operating Lease Liabilities included in Other Current Liabilities were $27 million and $15 million for PSEG and PSE&G, respectively. As of December 31, 2022, the current portions of Operating Lease Liabilities included in Other Current Liabilities were $28 million and $12 million for PSEG and PSE&G, respectively.
Lessor
PSEG Power & Other
Energy Holdings is the lessor in leveraged leases. See Note 8. Long-Term Investments and Note 9. Financing Receivables.
Energy Holdings is the lessor in an operating lease for a domestic energy generation facility with a remaining term through 2036. As of December 31, 2023, Energy Holdings’ property subject to this lease had a total carrying value of $10 million.
In 2022, Energy Holdings recorded pre-tax impairments of $78 million related to one of its domestic energy generating facilities and its real estate assets. In March 2023, Energy Holdings completed the sale of one of its domestic energy generating facilities and recorded an immaterial pre-tax gain. In December 2023, Energy Holdings completed the sale of its real estate assets and recorded an immaterial pre-tax gain.
A wholly owned subsidiary of PSEG Power is the lessor in an operating lease for certain parcels of land with terms through 2050, plus five optional renewal periods of ten years.
Prior to the sale of Solar Source in June 2021, certain of PSEG Power’s sales agreements related to its solar generating plants qualified as operating leases. Lease income was based on solar energy generation; therefore, all rental income recorded under these leases was variable.
The following is the operating lease income for the years ended December 31, 2023, 2022 and 2021:
Operating Lease IncomeMillions
Year Ended December 31, 2023
Fixed Lease Income$24 
Variable Lease Income— 
Total Operating Lease Income$24 
Year Ended December 31, 2022
Fixed Lease Income$31 
Variable Lease Income— 
Total Operating Lease Income$31 
Year Ended December 31, 2021
Fixed Lease Income$23 
Variable Lease Income12 
Total Operating Lease Income$35 
Operating leases had the following minimum future fixed lease receipts as of December 31, 2023:
Millions
2024$14 
202514 
202614 
202714 
202813 
Thereafter110 
Total Minimum Future Lease Receipts$179 
Public Service Electric and Gas Company  
Leases Leases
As of December 31, 2023, PSEG and its subsidiaries were both a lessee and a lessor in operating leases.
Lessee
PSE&G
PSE&G has operating leases for office space for customer service centers, rooftops and land for its Solar 4 All® facilities, equipment, vehicles and land for certain electric substations. These leases have remaining lease terms through 2040, some of which include options to extend the leases for up to four 5-year terms or one 10-year term; and two include options to extend the leases for one 45-year and one 48-year term, respectively. Some leases have fixed rent payments that have escalations based on certain indices, such as the CPI. Certain leases contain variable payments.
PSEG Power & Other
PSEG Power has operating leases for buildings and equipment. These leases have remaining terms through 2028, one of which includes an option to extend the lease for up to one 5-year term. One lease has fixed rent payments that has escalations based on the CPI. Certain leases contain variable payments.
Services has operating leases for real estate and office equipment. These leases have remaining terms through 2030. Services’ lease for its headquarters, which ends in 2030, includes options to extend for two 5-year terms.
Operating Lease Costs
The following amounts relate to total operating lease costs, including both amounts recognized in the Consolidated Statements of Operations during the years ended December 31, 2023, 2022 and 2021 and any amounts capitalized as part of the cost of another asset, and the cash flows arising from lease transactions.
PSE&GPSEG Power & OtherTotal
Millions
Operating Lease Costs
Year Ended December 31, 2023
  Long-term Lease Costs$34 $19 $53 
  Short-term Lease Costs21 6 27 
  Variable Lease Costs2 13 15 
Total Operating Lease Costs$57 $38 $95 
Year Ended December 31, 2023
Cash Paid for Amounts Included in the Measurement of Operating Lease Liabilities$17 $17 $34 
Weighted Average Remaining Lease Term in Years1078
Weighted Average Discount Rate4.0 %4.2 %4.1 %
PSE&GPSEG Power & OtherTotal
Millions
Operating Lease Costs
Year Ended December 31, 2022
  Long-term Lease Costs$31 $25 $56 
  Short-term Lease Costs21 5 26 
  Variable Lease Costs2 11 13 
Total Operating Lease Costs$54 $41 $95 
Year Ended December 31, 2022
Cash Paid for Amounts Included in the Measurement of Operating Lease Liabilities$17 $25 $42 
Weighted Average Remaining Lease Term in Years1179
Weighted Average Discount Rate3.5 %4.1 %3.9 %
PSE&GPSEG Power & OtherTotal
Millions
Operating Lease Costs
Year Ended December 31, 2021
  Long-term Lease Costs$24 $26 $50 
  Short-term Lease Costs36 6 42 
  Variable Lease Costs2 18 20 
Total Operating Lease Costs$62 $50 $112 
Year Ended December 31, 2021
Cash Paid for Amounts Included in the Measurement of Operating Lease Liabilities$17 $26 $43 
Weighted Average Remaining Lease Term in Years1289
Weighted Average Discount Rate3.4 %4.1 %3.8 %
Operating lease liabilities as of December 31, 2023 had the following maturities on an undiscounted basis:
PSE&GPSEG Power & OtherTotal
Millions
2024$18 $17 $35 
202515 17 32 
202613 16 29 
202712 17 29 
202810 16 26 
Thereafter57 28 85 
Total Minimum Lease Payments$125 $111 $236 
The following is a reconciliation of the undiscounted cash flows to the discounted Operating Lease Liabilities recognized on the Consolidated Balance Sheets:
As of December 31, 2023
PSE&GPSEG Power & OtherTotal
Millions
Undiscounted Cash Flows$125 $111 $236 
Reconciling Amount due to Discount Rate(21)(15)(36)
Total Discounted Operating Lease Liabilities$104 $96 $200 
As of December 31, 2022
PSE&GPSEG Power & OtherTotal
Millions
Undiscounted Cash Flows$109 $126 $235 
Reconciling Amount due to Discount Rate(20)(18)(38)
Total Discounted Operating Lease Liabilities$89 $108 $197 
As of December 31, 2023, the current portions of Operating Lease Liabilities included in Other Current Liabilities were $27 million and $15 million for PSEG and PSE&G, respectively. As of December 31, 2022, the current portions of Operating Lease Liabilities included in Other Current Liabilities were $28 million and $12 million for PSEG and PSE&G, respectively.
Lessor
PSEG Power & Other
Energy Holdings is the lessor in leveraged leases. See Note 8. Long-Term Investments and Note 9. Financing Receivables.
Energy Holdings is the lessor in an operating lease for a domestic energy generation facility with a remaining term through 2036. As of December 31, 2023, Energy Holdings’ property subject to this lease had a total carrying value of $10 million.
In 2022, Energy Holdings recorded pre-tax impairments of $78 million related to one of its domestic energy generating facilities and its real estate assets. In March 2023, Energy Holdings completed the sale of one of its domestic energy generating facilities and recorded an immaterial pre-tax gain. In December 2023, Energy Holdings completed the sale of its real estate assets and recorded an immaterial pre-tax gain.
A wholly owned subsidiary of PSEG Power is the lessor in an operating lease for certain parcels of land with terms through 2050, plus five optional renewal periods of ten years.
Prior to the sale of Solar Source in June 2021, certain of PSEG Power’s sales agreements related to its solar generating plants qualified as operating leases. Lease income was based on solar energy generation; therefore, all rental income recorded under these leases was variable.
The following is the operating lease income for the years ended December 31, 2023, 2022 and 2021:
Operating Lease IncomeMillions
Year Ended December 31, 2023
Fixed Lease Income$24 
Variable Lease Income— 
Total Operating Lease Income$24 
Year Ended December 31, 2022
Fixed Lease Income$31 
Variable Lease Income— 
Total Operating Lease Income$31 
Year Ended December 31, 2021
Fixed Lease Income$23 
Variable Lease Income12 
Total Operating Lease Income$35 
Operating leases had the following minimum future fixed lease receipts as of December 31, 2023:
Millions
2024$14 
202514 
202614 
202714 
202813 
Thereafter110 
Total Minimum Future Lease Receipts$179