Property, Plant and Equipment and Jointly-Owned Facilities
Information related to Property, Plant and Equipment as of December 31, 2021 and 2020 is detailed below:
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| | | | | |
| | 2021 | | 2020 | |
| | Millions | |
| PSE&G | | | | |
| Electric Transmission | $ | 15,544 | | | $ | 14,075 | | |
| Electric Distribution | 10,223 | | | 9,622 | | |
| Gas Distribution and Transmission | 9,818 | | | 9,081 | | |
| Construction Work in Progress | 1,196 | | | 1,783 | | |
| Other | 1,807 | | | 1,739 | | |
| Total PSE&G | 38,588 | | | 36,300 | | |
| Nuclear Production | 3,656 | | | 3,296 | | |
| Nuclear Fuel in Service | 762 | | | 748 | | |
| Fossil Production | — | | | 6,581 | | |
| Construction Work in Progress | 177 | | | 248 | | |
| Other | 501 | | | 1,396 | | |
| Total | $ | 43,684 | | | $ | 48,569 | | |
| | | | | |
The above table excludes amounts as of December 31, 2021 which have been classified as Held for Sale. For additional information see Note 4. Early Plant Retirements/Asset Dispositions and Impairments.
PSE&G and PSEG Power have ownership interests in and are responsible for providing their respective shares of the necessary financing for the following jointly-owned facilities to which they are a party. All amounts reflect PSE&G’s or PSEG Power’s share of the jointly-owned projects and the corresponding direct expenses are included in the Consolidated Statements of Operations as Operating Expenses.
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| | | | | As of December 31, | |
| | | | | 2021 | | 2020 | |
| | | Ownership | | | | Accumulated | | | | Accumulated | |
| | | Interest | | Plant | | Depreciation | | Plant | | Depreciation | |
| | | | | Millions | |
| PSE&G: | | | | | | | | | | | |
| Transmission Facilities | | Various | | $ | 165 | | | $ | 66 | | | $ | 161 | | | $ | 63 | | |
| PSEG Power: | | | | | | | | | | | |
| Nuclear Generating: | | | | | | | | | | | |
| Peach Bottom | | 50 | % | | $ | 1,452 | | | $ | 481 | | | $ | 1,405 | | | $ | 455 | | |
| Salem | | 57 | % | | $ | 1,468 | | | $ | 449 | | | $ | 1,321 | | | $ | 387 | | |
| Nuclear Support Facilities | | Various | | $ | 226 | | | $ | 107 | | | $ | 226 | | | $ | 97 | | |
| Pumped Storage Facilities: | | | | | | | | | | | |
| Merrill Creek Reservoir | | 14 | % | | $ | 1 | | | $ | — | | | $ | 1 | | | $ | — | | |
| | | | | | | | | | | | |
PSEG Power holds undivided ownership interests in the jointly-owned facilities above. PSEG Power is entitled to shares of the generating capability and output of each unit equal to its respective ownership interests. PSEG Power also pays its ownership share of additional construction costs, fuel inventory purchases and operating expenses. PSEG Power’s share of expenses for the jointly-owned facilities is included in the appropriate expense category. Each owner is responsible for any financing with respect to its pro rata share of capital expenditures.
PSEG Power co-owns Salem and Peach Bottom with Exelon Generation. PSEG Power is the operator of Salem and Exelon Generation is the operator of Peach Bottom. A committee appointed by the co-owners provides oversight. Proposed O&M budgets and requests for major capital expenditures are reviewed and approved as part of the normal PSEG Power governance process.
PSEG Power is a minority owner in the Merrill Creek Reservoir and Environmental Preserve in Warren County, New Jersey. Merrill Creek Owners Group is the owner-operator of this facility. The operator submits separate capital and O&M budgets, subject to PSEG Power’s approval as part of the normal PSEG Power governance process.
About PP&E Disclosures
The PP&E disclosure details a company's physical asset base — land, buildings, machinery, and equipment — along with the depreciation methods and useful life assumptions that determine how these costs flow through the income statement. Capitalization policy thresholds reveal management's judgment on the boundary between expense and asset, directly affecting both reported earnings and asset values.
Key signals: changes in estimated useful lives or depreciation methods can materially shift reported earnings without any operational change. Compare capital expenditures against depreciation expense — when capex consistently trails depreciation, the asset base may be aging and underinvested. Watch for large asset impairments or write-downs that signal overvalued carrying amounts. Asset retirement obligations reveal future environmental or decommissioning costs that are often underappreciated. Compare PP&E intensity (PP&E-to-revenue) against industry peers to assess capital efficiency and competitive positioning.