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TAXES (Tables)

12 Months Ended

Dec. 31, 2023

Schedule of Provision for income taxes (benefits)


INCOME TAXES ON INCOME FROM CONTINUING OPERATIONS	For the Years Ended December 31,
	2023		2022		2021
	(In millions)
Currently payable -
Federal(1)	$	14	$	—	$	2
State	1		11		21
	15		11		23
Deferred, net -
Federal(2)	279		946		174
State	(24)		47		127
	255		993		301


Investment tax credit amortization	(3)		(4)		(4)
Total income taxes on income from continuing operations	$	267	$	1,000	$	320

(1) Excludes $2 million of federal tax benefit associated with discontinued operations for the year ended December 31, 2021.

(2) Excludes $21 million of federal tax expense and $46 million of federal tax benefits associated with discontinued operations for the years ended December 31, 2023 and 2021, respectively.

Schedule of Reconciliation of federal income tax expense at the federal statutory rate to the total provision for income taxes

The following table provides a reconciliation of federal income tax expense at the federal statutory rate to the total income taxes on income from continuing operations for the years ended December 31, 2023, 2022 and 2021:


	For the Years Ended December 31,
	2023			2022			2021
	(In millions)

Income from continuing operations, before income taxes	$	1,464		$	1,439		$	1,559
Federal income tax expense at the 21% statutory rate	$	307		$	302		$	327
Increases (reductions) in taxes resulting from-
State and municipal income taxes, net of federal tax benefit	80			56			122
AFUDC equity and other flow-through	(30)			(26)			(29)
Amortization of investment tax credits	(3)			(4)			(4)






Deferred gain on 19.9% FET minority interest sale	58			752			—
Federal tax credits claimed	(3)			(3)			(34)
Nondeductible DPA monetary penalty	—			—			52
Excess deferred tax amortization due to the Tax Act	(46)			(51)			(54)

Uncertain tax positions	41			2			(82)

Valuation allowances	(146)			(47)			17
Other, net	9			19			5
Total income taxes on income from continuing operations	$	267		$	1,000		$	320
Effective income tax rate (continuing operations)	18.2		%	69.5		%	20.5		%

Schedule of Accumulated deferred income taxes

Accumulated deferred income taxes as of December 31, 2023 and 2022, are as follows:


	As of December 31,
	2023		2022
	(In millions)

Property basis differences	$	5,787	$	5,528








Pension and OPEB	(331)		(496)




Regulatory asset/liability	647		432

Deferred compensation	(153)		(149)



Deferred gain on 19.9% FET minority interest sale	810		752
Loss carryforwards and tax credits	(2,192)		(2,073)
Valuation reserve	226		440


Other	(264)		(232)
Net accumulated deferred income tax liability	$	4,530	$	4,202

Schedule of Pre-tax net operating loss expiration period


Expiration Period	State		Local
	(In millions)
2024-2028	$	2,403	$	5,269
2029-2033	1,415		—
2034-2038	1,079		—
2039-2043	823		—
Indefinite	2,469		—
	$	8,189	$	5,269

Schedule of Valuation allowance roll forward

The following table summarizes the changes in valuation allowances on federal, state, and local deferred tax assets related to business interest expense carryforwards and employee compensation deduction limitations under section 162(m), in addition to state and local NOLs discussed above for the years ended December 31, 2023, 2022 and 2021:


(In millions)	2023		2022		2021

Beginning of year balance	$	440	$	484	$	496
Charged to income	(214)		(44)		(12)
Charged to other accounts	—		—		—
Write-offs	—		—		—
End of year balance	$	226	$	440	$	484

Schedule of Changes in unrecognized tax benefits

The following table summarizes the changes (gross) in uncertain tax positions for the years ended December 31, 2023, 2022 and 2021:



	(In millions)
Balance, January 1, 2021	$	139
Current year increases	15
Prior year decreases	(8)


Effectively settled with taxing authorities	(97)
Decrease for lapse in statute	(2)
Balance, December 31, 2021	$	47

Prior year increases	2

Decrease for lapse in statute	(7)


Balance, December 31, 2022	$	42

Prior years increases	88

Effectively settled with taxing authorities	(24)
Decrease for lapse in statute	(1)
Balance, December 31, 2023	$	105

Schedule of Details of general taxes

General tax expense for the years ended December 31, 2023, 2022 and 2021, recognized in continuing operations is summarized as follows:


	For the Years Ended December 31,
	2023		2022		2021
	(In millions)
kWh excise	$	185	$	191	$	189
State gross receipts	235		219		190
Real and personal property	615		596		571
Social security and unemployment	113		105		103
Other	16		18		20
Total general taxes	$	1,164	$	1,129	$	1,073