XML 41 R20.htm IDEA: XBRL DOCUMENT v3.25.0.1
Leases
 12 Months Ended
Dec. 31, 2024
Leases

Note 7. Leases

As of December 31, 2024, 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 2044, 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, 2024, 2023 and 2022 and any amounts capitalized as part of the cost of another asset, and the cash flows arising from lease transactions.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PSE&G

 

 

PSEG
Power &
Other

 

 

Total

 

 

 

 

 

Millions

 

 

 

Operating Lease Costs

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31, 2024

 

 

 

 

 

 

 

 

 

 

 

Long-term Lease Costs

 

$

43

 

 

$

15

 

 

$

58

 

 

 

Short-term Lease Costs

 

 

21

 

 

 

3

 

 

 

24

 

 

 

Variable Lease Costs

 

 

2

 

 

 

11

 

 

 

13

 

 

 

Total Operating Lease Costs

 

$

66

 

 

$

29

 

 

$

95

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31, 2024

 

 

 

 

 

 

 

 

 

 

 

Cash Paid for Amounts Included in the Measurement of Operating Lease Liabilities

 

$

20

 

 

$

17

 

 

$

37

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted Average Remaining Lease Term in Years

 

 

9

 

 

 

6

 

 

 

7

 

 

 

Weighted Average Discount Rate

 

 

4.0

%

 

 

4.2

%

 

 

4.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PSE&G

 

 

PSEG
Power &
Other

 

 

Total

 

 

 

 

 

Millions

 

 

 

Operating Lease Costs

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31, 2023

 

 

 

 

 

 

 

 

 

 

 

Long-term Lease Costs

 

$

34

 

 

$

19

 

 

$

53

 

 

 

Short-term Lease Costs

 

 

21

 

 

 

6

 

 

 

27

 

 

 

Variable Lease Costs

 

 

2

 

 

 

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 Years

 

 

10

 

 

 

7

 

 

 

8

 

 

 

Weighted Average Discount Rate

 

 

4.0

%

 

 

4.2

%

 

 

4.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PSE&G

 

 

PSEG
Power &
Other

 

 

Total

 

 

 

 

 

Millions

 

 

 

Operating Lease Costs

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31, 2022

 

 

 

 

 

 

 

 

 

 

 

Long-term Lease Costs

 

$

31

 

 

$

25

 

 

$

56

 

 

 

Short-term Lease Costs

 

 

21

 

 

 

5

 

 

 

26

 

 

 

Variable Lease Costs

 

 

2

 

 

 

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 Years

 

 

11

 

 

 

7

 

 

 

9

 

 

 

Weighted Average Discount Rate

 

 

3.5

%

 

 

4.1

%

 

 

3.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating lease liabilities as of December 31, 2024 had the following maturities on an undiscounted basis:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PSE&G

 

 

PSEG
Power &
Other

 

 

Total

 

 

 

 

 

Millions

 

 

 

2025

 

$

19

 

 

$

16

 

 

$

35

 

 

 

2026

 

 

16

 

 

 

16

 

 

 

32

 

 

 

2027

 

 

13

 

 

 

17

 

 

 

30

 

 

 

2028

 

 

11

 

 

 

16

 

 

 

27

 

 

 

2029

 

 

10

 

 

 

16

 

 

 

26

 

 

 

Thereafter

 

 

47

 

 

 

13

 

 

 

60

 

 

 

Total Minimum Lease Payments

 

$

116

 

 

$

94

 

 

$

210

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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, 2024

 

 

 

 

 

PSE&G

 

 

PSEG
Power &
Other

 

 

Total

 

 

 

 

 

Millions

 

 

 

Undiscounted Cash Flows

 

$

116

 

 

$

94

 

 

$

210

 

 

 

Reconciling Amount due to Discount Rate

 

 

(18

)

 

 

(11

)

 

 

(29

)

 

 

Total Discounted Operating Lease Liabilities

 

$

98

 

 

$

83

 

 

$

181

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of December 31, 2023

 

 

 

 

 

PSE&G

 

 

PSEG
Power &
Other

 

 

Total

 

 

 

 

 

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, 2024, the current portions of Operating Lease Liabilities included in Other Current Liabilities were $29 million and $15 million for PSEG and PSE&G, respectively. 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.

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, 2024, Energy Holdings’ property subject to this lease had a total carrying value of $9 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.

The following is the operating lease income for the years ended December 31, 2024, 2023 and 2022:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Years ended December 31,

 

 

 

Operating Lease Income

 

2024

 

 

2023

 

 

2022

 

 

 

 

 

Millions

 

 

 

Fixed Lease Income

 

$

14

 

 

$

24

 

 

$

31

 

 

 

Variable Lease Income

 

 

—

 

 

 

—

 

 

 

—

 

 

 

Total Operating Lease Income

 

$

14

 

 

$

24

 

 

$

31

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating leases had the following minimum future fixed lease receipts as of December 31, 2024:

 

 

 

 

 

 

 

 

 

 

Millions

 

 

 

2025

 

$

14

 

 

 

2026

 

 

14

 

 

 

2027

 

 

14

 

 

 

2028

 

 

14

 

 

 

2029

 

 

13

 

 

 

Thereafter

 

 

96

 

 

 

Total Minimum Future Lease Receipts

 

$

165

 

 

 

 

 

 

 

 

 
Public Service Electric and Gas Company [Member]  
Leases

Note 7. Leases

As of December 31, 2024, 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 2044, 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, 2024, 2023 and 2022 and any amounts capitalized as part of the cost of another asset, and the cash flows arising from lease transactions.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PSE&G

 

 

PSEG
Power &
Other

 

 

Total

 

 

 

 

 

Millions

 

 

 

Operating Lease Costs

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31, 2024

 

 

 

 

 

 

 

 

 

 

 

Long-term Lease Costs

 

$

43

 

 

$

15

 

 

$

58

 

 

 

Short-term Lease Costs

 

 

21

 

 

 

3

 

 

 

24

 

 

 

Variable Lease Costs

 

 

2

 

 

 

11

 

 

 

13

 

 

 

Total Operating Lease Costs

 

$

66

 

 

$

29

 

 

$

95

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31, 2024

 

 

 

 

 

 

 

 

 

 

 

Cash Paid for Amounts Included in the Measurement of Operating Lease Liabilities

 

$

20

 

 

$

17

 

 

$

37

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted Average Remaining Lease Term in Years

 

 

9

 

 

 

6

 

 

 

7

 

 

 

Weighted Average Discount Rate

 

 

4.0

%

 

 

4.2

%

 

 

4.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PSE&G

 

 

PSEG
Power &
Other

 

 

Total

 

 

 

 

 

Millions

 

 

 

Operating Lease Costs

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31, 2023

 

 

 

 

 

 

 

 

 

 

 

Long-term Lease Costs

 

$

34

 

 

$

19

 

 

$

53

 

 

 

Short-term Lease Costs

 

 

21

 

 

 

6

 

 

 

27

 

 

 

Variable Lease Costs

 

 

2

 

 

 

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 Years

 

 

10

 

 

 

7

 

 

 

8

 

 

 

Weighted Average Discount Rate

 

 

4.0

%

 

 

4.2

%

 

 

4.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PSE&G

 

 

PSEG
Power &
Other

 

 

Total

 

 

 

 

 

Millions

 

 

 

Operating Lease Costs

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31, 2022

 

 

 

 

 

 

 

 

 

 

 

Long-term Lease Costs

 

$

31

 

 

$

25

 

 

$

56

 

 

 

Short-term Lease Costs

 

 

21

 

 

 

5

 

 

 

26

 

 

 

Variable Lease Costs

 

 

2

 

 

 

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 Years

 

 

11

 

 

 

7

 

 

 

9

 

 

 

Weighted Average Discount Rate

 

 

3.5

%

 

 

4.1

%

 

 

3.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating lease liabilities as of December 31, 2024 had the following maturities on an undiscounted basis:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PSE&G

 

 

PSEG
Power &
Other

 

 

Total

 

 

 

 

 

Millions

 

 

 

2025

 

$

19

 

 

$

16

 

 

$

35

 

 

 

2026

 

 

16

 

 

 

16

 

 

 

32

 

 

 

2027

 

 

13

 

 

 

17

 

 

 

30

 

 

 

2028

 

 

11

 

 

 

16

 

 

 

27

 

 

 

2029

 

 

10

 

 

 

16

 

 

 

26

 

 

 

Thereafter

 

 

47

 

 

 

13

 

 

 

60

 

 

 

Total Minimum Lease Payments

 

$

116

 

 

$

94

 

 

$

210

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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, 2024

 

 

 

 

 

PSE&G

 

 

PSEG
Power &
Other

 

 

Total

 

 

 

 

 

Millions

 

 

 

Undiscounted Cash Flows

 

$

116

 

 

$

94

 

 

$

210

 

 

 

Reconciling Amount due to Discount Rate

 

 

(18

)

 

 

(11

)

 

 

(29

)

 

 

Total Discounted Operating Lease Liabilities

 

$

98

 

 

$

83

 

 

$

181

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of December 31, 2023

 

 

 

 

 

PSE&G

 

 

PSEG
Power &
Other

 

 

Total

 

 

 

 

 

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, 2024, the current portions of Operating Lease Liabilities included in Other Current Liabilities were $29 million and $15 million for PSEG and PSE&G, respectively. 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.

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, 2024, Energy Holdings’ property subject to this lease had a total carrying value of $9 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.

The following is the operating lease income for the years ended December 31, 2024, 2023 and 2022:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Years ended December 31,

 

 

 

Operating Lease Income

 

2024

 

 

2023

 

 

2022

 

 

 

 

 

Millions

 

 

 

Fixed Lease Income

 

$

14

 

 

$

24

 

 

$

31

 

 

 

Variable Lease Income

 

 

—

 

 

 

—

 

 

 

—

 

 

 

Total Operating Lease Income

 

$

14

 

 

$

24

 

 

$

31

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating leases had the following minimum future fixed lease receipts as of December 31, 2024:

 

 

 

 

 

 

 

 

 

 

Millions

 

 

 

2025

 

$

14

 

 

 

2026

 

 

14

 

 

 

2027

 

 

14

 

 

 

2028

 

 

14

 

 

 

2029

 

 

13

 

 

 

Thereafter

 

 

96

 

 

 

Total Minimum Future Lease Receipts

 

$

165