Financial Information By Business Segments

12 Months Ended

Dec. 31, 2023

Segment Reporting Information [Line Items]

Financial Information By Business Segments

Financial Information by Business Segment

Basis of Organization

PSEG’s and PSE&G’s operating segments were determined by management in accordance with GAAP. These segments were determined based on how the Chief Operating Decision Maker (CODM) (the Chief Executive Officer (CEO) for PSEG and PSE&G), measures performance based on segment Net Income and how resources are allocated to each business.

Following completion of the sale of the PSEG Power Fossil portfolio in February 2022 and as a result of the transition to a new CEO, our designated CODM, effective September 1, 2022, various changes have been made to the content and manner in

which the new CEO reviews financial information for purposes of assessing business performance and allocating resources. Based on management’s analysis, PSE&G and PSEG Power were determined to remain operating segments of PSEG. However, PSEG revised its reportable segments to PSE&G and PSEG Power & Other. PSE&G continues to be PSEG’s principal reportable segment. The PSEG Power & Other reportable segment includes amounts related to the PSEG Power operating segment as well as amounts applicable to Energy Holdings, PSEG LI, PSEG (parent corporation) and Services, which do not meet the definition of operating segments individually or in the aggregate and are immaterial to PSEG’s consolidated assets and results. All periods presented in the following tables reflect the change in segment presentation.

PSE&G

PSE&G earns revenues from its tariffs, under which it provides electric transmission and electric and gas distribution services to residential, commercial and industrial customers in New Jersey. The rates charged for electric transmission are regulated by FERC while the rates charged for electric and gas distribution are regulated by the BPU. Revenues are also earned from several other activities such as investments in EE equipment on customers’ premises, solar investments, the appliance service business and other miscellaneous services.

PSEG Power & Other

This reportable segment is comprised primarily of PSEG Power which earns revenues primarily by selling energy, capacity and ancillary services into the markets for these products. PSEG Power also enters into bilateral contracts for energy, gas and other energy-related contracts to optimize the value of its portfolio of generating assets and its gas supply obligations. In addition, PSEG Power’s Salem 1, Salem 2 and Hope Creek nuclear plants receive ZEC revenue from the EDCs in New Jersey including PSE&G.

This reportable segment also includes amounts applicable to PSEG LI, which generates revenues under its contract with LIPA, primarily for the recovery of costs when Servco is a principal in the transaction (see Note 4. Variable Interest Entity for additional information) as well as fixed and variable fee components under the contract, and Energy Holdings which holds an immaterial portfolio of remaining lease investments. Other also includes amounts applicable to PSEG (parent corporation) and Services.

	PSE&G		PSEG Power & Other		Eliminations (A)		Consolidated Total
	Millions
Year Ended December 31, 2023
Operating Revenues	$	7,807	$	4,533	$	(1,103)	$	11,237
Depreciation and Amortization	980		155		—		1,135
Operating Income (Loss)	1,974		1,711		—		3,685
Income from Equity Method Investments	—		1		—		1
Interest Income	19		38		(4)		53
Interest Expense	493		259		(4)		748
Income (Loss) before Income Taxes	1,675		1,406		—		3,081
Income Tax Expense (Benefit)	160		358		—		518
Net Income (Loss) (B) (C)	$	1,515	$	1,048	$	—	$	2,563
Gross Additions to Long-Lived Assets	$	2,998	$	327	$	—	$	3,325
As of December 31, 2023
Total Assets	$	42,873	$	8,407	$	(539)	$	50,741
Investments in Equity Method Subsidiaries	$	—	$	17	$	—	$	17

	PSE&G		PSEG Power & Other		Eliminations (A)		Consolidated Total
	Millions
Year Ended December 31, 2022
Operating Revenues	$	7,935	$	3,266	$	(1,401)	$	9,800
Depreciation and Amortization	935		165		—		1,100
Operating Income (Loss)	1,892		(511)		—		1,381
Income from Equity Method Investments	—		14		—		14
Interest Income	19		13		(1)		31
Interest Expense	427		202		(1)		628
Income (Loss) before Income Taxes	1,832		(830)		—		1,002
Income Tax Expense (Benefit)	267		(296)		—		(29)
Net Income (Loss) (B) (C)	$	1,565	$	(534)	$	—	$	1,031
Gross Additions to Long-Lived Assets	$	2,590	$	298	$	—	$	2,888
As of December 31, 2022
Total Assets	$	39,960	$	9,285	$	(527)	$	48,718
Investments in Equity Method Subsidiaries	$	—	$	306	$	—	$	306

	PSE&G		PSEG Power & Other		Eliminations (A)		Consolidated Total
	Millions
Year Ended December 31, 2021
Operating Revenues	$	7,122	$	3,767	$	(1,167)	$	9,722
Depreciation and Amortization	928		288		—		1,216
Operating Income (Loss)	1,818		(2,674)		—		(856)
Income from Equity Method Investments	—		16		—		16
Interest Income	14		6		—		20
Interest Expense	402		169		—		571
Income (Loss) before Income Taxes	1,770		(2,859)		—		(1,089)
Income Tax Expense (Benefit)	324		(765)		—		(441)
Net Income (Loss) (B) (C)	$	1,446	$	(2,094)	$	—	$	(648)
Gross Additions to Long-Lived Assets	$	2,447	$	272	$	—	$	2,719
As of December 31, 2021
Total Assets	$	37,198	$	12,258	$	(457)	$	48,999
Investments in Equity Method Subsidiaries	$	—	$	173	$	—	$	173

(A)Intercompany eliminations primarily relate to intercompany transactions between PSE&G and PSEG Power. For a further discussion of the intercompany transactions between PSE&G and PSEG Power, see Note 24. Related-Party Transactions.

(B)Includes a $239 million after-tax pension charge due to the remeasurement of the qualified pension plans as a result of the pension settlement transaction in the third quarter of 2023. Includes after-tax impairments of $92 million related to certain Energy Holdings investments and additional adjustments related to the sale of PSEG Power’s fossil generation assets in the year ended December 31, 2022. Includes after-tax impairment losses and other charges, including debt extinguishment costs, related to the sale of the fossil generating assets at PSEG Power of $2,158 million in the year ended December 31, 2021. See Note 3. Asset Dispositions and Impairments for additional information.

(C)Includes net after-tax gain (loss) of $959 million, $(457) million and $(446) million in the years ended December 31, 2023, 2022 and 2021, respectively at PSEG Power related to the impacts of non-trading commodity mark-to-market activity, which consists of the financial impact from positions with future delivery dates.

Public Service Electric and Gas Company

Segment Reporting Information [Line Items]

Financial Information By Business Segments

Financial Information by Business Segment

Basis of Organization

PSEG’s and PSE&G’s operating segments were determined by management in accordance with GAAP. These segments were determined based on how the Chief Operating Decision Maker (CODM) (the Chief Executive Officer (CEO) for PSEG and PSE&G), measures performance based on segment Net Income and how resources are allocated to each business.

Following completion of the sale of the PSEG Power Fossil portfolio in February 2022 and as a result of the transition to a new CEO, our designated CODM, effective September 1, 2022, various changes have been made to the content and manner in

which the new CEO reviews financial information for purposes of assessing business performance and allocating resources. Based on management’s analysis, PSE&G and PSEG Power were determined to remain operating segments of PSEG. However, PSEG revised its reportable segments to PSE&G and PSEG Power & Other. PSE&G continues to be PSEG’s principal reportable segment. The PSEG Power & Other reportable segment includes amounts related to the PSEG Power operating segment as well as amounts applicable to Energy Holdings, PSEG LI, PSEG (parent corporation) and Services, which do not meet the definition of operating segments individually or in the aggregate and are immaterial to PSEG’s consolidated assets and results. All periods presented in the following tables reflect the change in segment presentation.

PSE&G

PSE&G earns revenues from its tariffs, under which it provides electric transmission and electric and gas distribution services to residential, commercial and industrial customers in New Jersey. The rates charged for electric transmission are regulated by FERC while the rates charged for electric and gas distribution are regulated by the BPU. Revenues are also earned from several other activities such as investments in EE equipment on customers’ premises, solar investments, the appliance service business and other miscellaneous services.

PSEG Power & Other

This reportable segment is comprised primarily of PSEG Power which earns revenues primarily by selling energy, capacity and ancillary services into the markets for these products. PSEG Power also enters into bilateral contracts for energy, gas and other energy-related contracts to optimize the value of its portfolio of generating assets and its gas supply obligations. In addition, PSEG Power’s Salem 1, Salem 2 and Hope Creek nuclear plants receive ZEC revenue from the EDCs in New Jersey including PSE&G.

This reportable segment also includes amounts applicable to PSEG LI, which generates revenues under its contract with LIPA, primarily for the recovery of costs when Servco is a principal in the transaction (see Note 4. Variable Interest Entity for additional information) as well as fixed and variable fee components under the contract, and Energy Holdings which holds an immaterial portfolio of remaining lease investments. Other also includes amounts applicable to PSEG (parent corporation) and Services.

	PSE&G		PSEG Power & Other		Eliminations (A)		Consolidated Total
	Millions
Year Ended December 31, 2023
Operating Revenues	$	7,807	$	4,533	$	(1,103)	$	11,237
Depreciation and Amortization	980		155		—		1,135
Operating Income (Loss)	1,974		1,711		—		3,685
Income from Equity Method Investments	—		1		—		1
Interest Income	19		38		(4)		53
Interest Expense	493		259		(4)		748
Income (Loss) before Income Taxes	1,675		1,406		—		3,081
Income Tax Expense (Benefit)	160		358		—		518
Net Income (Loss) (B) (C)	$	1,515	$	1,048	$	—	$	2,563
Gross Additions to Long-Lived Assets	$	2,998	$	327	$	—	$	3,325
As of December 31, 2023
Total Assets	$	42,873	$	8,407	$	(539)	$	50,741
Investments in Equity Method Subsidiaries	$	—	$	17	$	—	$	17

	PSE&G		PSEG Power & Other		Eliminations (A)		Consolidated Total
	Millions
Year Ended December 31, 2022
Operating Revenues	$	7,935	$	3,266	$	(1,401)	$	9,800
Depreciation and Amortization	935		165		—		1,100
Operating Income (Loss)	1,892		(511)		—		1,381
Income from Equity Method Investments	—		14		—		14
Interest Income	19		13		(1)		31
Interest Expense	427		202		(1)		628
Income (Loss) before Income Taxes	1,832		(830)		—		1,002
Income Tax Expense (Benefit)	267		(296)		—		(29)
Net Income (Loss) (B) (C)	$	1,565	$	(534)	$	—	$	1,031
Gross Additions to Long-Lived Assets	$	2,590	$	298	$	—	$	2,888
As of December 31, 2022
Total Assets	$	39,960	$	9,285	$	(527)	$	48,718
Investments in Equity Method Subsidiaries	$	—	$	306	$	—	$	306

	PSE&G		PSEG Power & Other		Eliminations (A)		Consolidated Total
	Millions
Year Ended December 31, 2021
Operating Revenues	$	7,122	$	3,767	$	(1,167)	$	9,722
Depreciation and Amortization	928		288		—		1,216
Operating Income (Loss)	1,818		(2,674)		—		(856)
Income from Equity Method Investments	—		16		—		16
Interest Income	14		6		—		20
Interest Expense	402		169		—		571
Income (Loss) before Income Taxes	1,770		(2,859)		—		(1,089)
Income Tax Expense (Benefit)	324		(765)		—		(441)
Net Income (Loss) (B) (C)	$	1,446	$	(2,094)	$	—	$	(648)
Gross Additions to Long-Lived Assets	$	2,447	$	272	$	—	$	2,719
As of December 31, 2021
Total Assets	$	37,198	$	12,258	$	(457)	$	48,999
Investments in Equity Method Subsidiaries	$	—	$	173	$	—	$	173

(A)Intercompany eliminations primarily relate to intercompany transactions between PSE&G and PSEG Power. For a further discussion of the intercompany transactions between PSE&G and PSEG Power, see Note 24. Related-Party Transactions.

(B)Includes a $239 million after-tax pension charge due to the remeasurement of the qualified pension plans as a result of the pension settlement transaction in the third quarter of 2023. Includes after-tax impairments of $92 million related to certain Energy Holdings investments and additional adjustments related to the sale of PSEG Power’s fossil generation assets in the year ended December 31, 2022. Includes after-tax impairment losses and other charges, including debt extinguishment costs, related to the sale of the fossil generating assets at PSEG Power of $2,158 million in the year ended December 31, 2021. See Note 3. Asset Dispositions and Impairments for additional information.

(C)Includes net after-tax gain (loss) of $959 million, $(457) million and $(446) million in the years ended December 31, 2023, 2022 and 2021, respectively at PSEG Power related to the impacts of non-trading commodity mark-to-market activity, which consists of the financial impact from positions with future delivery dates.