PEG · 10-Q · 2026Q2 · Full report

Income Tax Rate Changes

PUBLIC SERVICE ENTERPRISE GROUP INC · 2026-08-04 · Importance 9 · Surprise 6

PSE&G’s six-month income tax expense increased $53 million, primarily because utility ratemaking produced less flowback of historic mixed-service-cost deductions and pre-tax income increased. PSE&G’s second-quarter income tax expense increased $18 million for the same reasons. PSEG Power & Other’s six-month income tax expense decreased $51 million because pre-tax income was lower, while second-quarter tax expense decreased $95 million. PSEG states that future guidance on the 15% corporate alternative minimum tax and nuclear production tax credit could materially affect its effective tax rate, cash taxes, results of operations, financial condition, and cash flows.

Key facts

• PSE&G Income Tax Expense increased $18 million for the three months and $53 million for the six months ended June 30, 2026 due primarily to a decrease in the flowback of historic mixed service cost deductions and higher pre-tax income. source