Income Taxes |
3 Months Ended |
|---|---|
Mar. 31, 2026 | |
| Income Taxes [Line Items] | |
| Income Taxes | Note 13. Income Taxes
PSEG’s and PSE&G’s total income tax expense (benefit) for interim periods is determined using an estimated annual effective tax rate, adjusted for discrete items, if any, that are taken into account in the relevant period. Each quarter, PSEG and PSE&G update the respective estimated annual effective tax rates, and if the estimated tax rate changes, PSEG and PSE&G make cumulative adjustments. PSEG’s effective tax rates in the three months ended March 31, 2026 and 2025 were 12.6% and 4.5%, respectively. PSE&G’s effective tax rates in the three months ended March 31, 2026 and 2025 were 12.0% and 7.5%, respectively. PSEG and PSE&G’s lower effective tax rate compared to the statutory tax rate is primarily driven by the effects of utility ratemaking. The increase in the effective tax rates for the three months ended March 31, 2026 was driven by a decrease in the flowback of historic mixed service cost deductions as an effect of utility ratemaking in 2026 compared to 2025. In August 2022, the Inflation Reduction Act (IRA) was signed into law. The IRA enacted a new 15% corporate alternative minimum tax (CAMT), which is based on adjusted financial statement income. In 2025, PSEG determined that it is subject to CAMT as it is an applicable corporation. As of March 31, 2026, PSEG and PSE&G recorded a CAMT liability of approximately $180 million and $140 million, respectively, along with corresponding deferred tax assets related to CAMT credit carryforwards, which management expects to fully utilize in future periods. However, certain CAMT rules remain unclear; therefore, the issuance of additional authoritative guidance could materially impact PSEG’s and PSE&G’s results of operations, financial condition and cash flows. The enactment of additional federal or state tax legislation and clarification of previously enacted tax laws could impact PSEG’s and PSE&G’s financial statements. |
| Public Service Electric and Gas Company [Member] | |
| Income Taxes [Line Items] | |
| Income Taxes | Note 13. Income Taxes
PSEG’s and PSE&G’s total income tax expense (benefit) for interim periods is determined using an estimated annual effective tax rate, adjusted for discrete items, if any, that are taken into account in the relevant period. Each quarter, PSEG and PSE&G update the respective estimated annual effective tax rates, and if the estimated tax rate changes, PSEG and PSE&G make cumulative adjustments. PSEG’s effective tax rates in the three months ended March 31, 2026 and 2025 were 12.6% and 4.5%, respectively. PSE&G’s effective tax rates in the three months ended March 31, 2026 and 2025 were 12.0% and 7.5%, respectively. PSEG and PSE&G’s lower effective tax rate compared to the statutory tax rate is primarily driven by the effects of utility ratemaking. The increase in the effective tax rates for the three months ended March 31, 2026 was driven by a decrease in the flowback of historic mixed service cost deductions as an effect of utility ratemaking in 2026 compared to 2025. In August 2022, the Inflation Reduction Act (IRA) was signed into law. The IRA enacted a new 15% corporate alternative minimum tax (CAMT), which is based on adjusted financial statement income. In 2025, PSEG determined that it is subject to CAMT as it is an applicable corporation. As of March 31, 2026, PSEG and PSE&G recorded a CAMT liability of approximately $180 million and $140 million, respectively, along with corresponding deferred tax assets related to CAMT credit carryforwards, which management expects to fully utilize in future periods. However, certain CAMT rules remain unclear; therefore, the issuance of additional authoritative guidance could materially impact PSEG’s and PSE&G’s results of operations, financial condition and cash flows. The enactment of additional federal or state tax legislation and clarification of previously enacted tax laws could impact PSEG’s and PSE&G’s financial statements. |