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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023



2023	PSEG		PSE&G
	Millions
Total Amount of Unrecognized Tax Benefits as of January 1, 2023	$	130	$	29
Increases as a Result of Positions Taken in a Prior Period	16		2
Decreases as a Result of Positions Taken in a Prior Period	(25)		(12)
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	(10)		(7)
Decreases due to Lapses of Applicable Statute of Limitations	(1)		(1)
Total Amount of Unrecognized Tax Benefits as of December 31, 2023	$	110	$	11
Accumulated Deferred Income Taxes Associated with Unrecognized Tax Benefits	(29)		(7)
Regulatory Asset—Unrecognized Tax Benefits	(2)		(2)
Total Amount of Unrecognized Tax Benefits that if Recognized, would Impact the Effective Tax Rate (including Interest and Penalties)	$	79	$	2



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

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,
	2023		2022		2021
	Millions
PSEG	$	25	$	38	$	31
PSE&G	$	1	$	8	$	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	$	17
PSE&G	$	2

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

2020-2022

N/A

New Jersey

2011-2022

2015-2022

Pennsylvania

2017-2022

2019-2022

Connecticut

2019-2022

N/A

Maryland

2020-2022

N/A

New York

2017-2022

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	2023			2022			2021
	Millions
Net Income (Loss)	$	2,563		$	1,031		$	(648)
Income Taxes:
Operating Income:
Current Expense (Benefit):
Federal	$	144		$	262		$	407
State	19			(30)			(3)
Total Current	163			232			404
Deferred Expense (Benefit):
Federal	109			(335)			(700)
State	253			80			(136)
Total Deferred	362			(255)			(836)
ITC	(7)			(6)			(9)
Total Income Tax Expense (Benefit)	$	518		$	(29)		$	(441)
Pre-Tax Income (Loss)	$	3,081		$	1,002		$	(1,089)
Tax Computed at Statutory Rate @ 21%	$	647		$	210		$	(229)
Increase (Decrease) Attributable to Flow-Through of Certain Tax Adjustments:
State Income Taxes (net of federal income tax)	215			41			(109)
Uncertain Tax Positions	(14)			(22)			19
NDT Fund	26			(22)			23
Plant-Related Items	(7)			(6)			(7)
Tax Credits	(10)			(10)			29
Audit Settlement	(7)			—			(8)
Leasing Activities	(22)			—			(1)
GPRC-CEF-EE	(52)			(37)			(13)
TAC	(232)			(193)			(171)
Bad Debt Flow-Through	(9)			(1)			27
Other	(17)			11			(1)
Subtotal	(129)			(239)			(212)
Total Income Tax Expense (Benefit)	$	518		$	(29)		$	(441)
Effective Income Tax Rate	16.8		%	(2.9)		%	40.5		%

Deferred Income Taxes

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



	As of December 31,
PSEG	2023		2022
	Millions
Deferred Income Taxes
Assets:
Regulatory Liability Excess Deferred Tax	$	339	$	390
OPEB	58		74
Bad Debt	57		66
Corporate Alternative Minimum Tax (CAMT) Credit Carryforward	44		—
Operating Leases	42		42
Other	129		379
Total Assets	$	669	$	951

Liabilities:
Plant-Related Items	$	4,850	$	4,663
New Jersey Corporate Business Tax	1,284		1,009
Leasing Activities	35		99
AROs and NDT Fund	250		161
Taxes Recoverable Through Future Rates (net)	201		149
Pension Costs	189		164
Operating Leases	38		37
Other	430		324
Total Liabilities	$	7,277	$	6,606
Summary of Accumulated Deferred Income Taxes:
Net Deferred Income Tax Liabilities	$	6,608	$	5,655
ITC	63		70
Net Total Deferred Income Taxes and ITC	$	6,671	$	5,725

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	2023			2022			2021
	Millions
Net Income	$	1,515		$	1,565		$	1,446
Income Taxes:
Operating Income:
Current Expense (Benefit):
Federal	$	127		$	130		$	208
State	4			—			1
Total Current	131			130			209
Deferred Expense (Benefit):
Federal	(113)			(17)			(33)
State	149			159			153
Total Deferred	36			142			120
ITC	(7)			(5)			(5)
Total Income Tax Expense	$	160		$	267		$	324
Pre-Tax Income	$	1,675		$	1,832		$	1,770
Tax Computed at Statutory Rate @ 21%	$	352		$	385		$	372
Increase (Decrease) Attributable to Flow-Through of Certain Tax Adjustments:
State Income Taxes (net of federal income tax)	121			126			122
Uncertain Tax Positions	(9)			2			2
Plant-Related Items	(7)			(6)			(7)
Tax Credits	(9)			(9)			(8)
GPRC-CEF-EE	(52)			(37)			(13)
TAC	(232)			(193)			(171)
Bad Debt Flow-Through	(9)			(1)			27
Other	5			—			—
Subtotal	(192)			(118)			(48)
Total Income Tax Expense	$	160		$	267		$	324
Effective Income Tax Rate	9.6		%	14.6		%	18.3		%

Deferred Income Taxes

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



	As of December 31,
PSE&G	2023		2022
	Millions
Deferred Income Taxes
Assets:
Regulatory Liability Excess Deferred Tax	$	339	$	390
OPEB	28		42
CAMT Credit Carryforward	106		—
Bad Debt	57		66
Operating Leases	22		19
Other	60		56
Total Assets	$	612	$	573
Liabilities:
Plant-Related Items	$	4,396	$	4,174
New Jersey Corporate Business Tax	1,160		1,011
Pension Costs	198		195
Taxes Recoverable Through Future Rates (net)	201		149
Conservation Costs	88		81
Operating Leases	21		18
Other	297		223
Total Liabilities	$	6,361	$	5,851
Summary of Accumulated Deferred Income Taxes:
Net Deferred Income Tax Liabilities	$	5,749	$	5,278
ITC	64		70
Net Total Deferred Income Taxes and ITC	$	5,813	$	5,348

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.