Leading toward a sustainable future

November 2023

PSEG Investor Update November 2023

Forward-Looking Statements

Certain of the matters discussed in this presentation about our and our subsidiaries' future performance, including, without limitation, future revenues, earnings, strategies, prospects, consequences and all other statements that are not purely historical constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward- looking statements are subject to risks and uncertainties, which could cause actual results to differ materially from those anticipated. Such statements are based on management's beliefs as well as assumptions made by and information currently available to management. When used herein, the words "anticipate," "intend," "estimate," "believe," "expect," "plan," "should," "hypothetical," "potential," "forecast," "project," variations of such words and similar expressions are intended to identify forward- looking statements. Factors that may cause actual results to differ are often presented with the forward- looking statements themselves. Other factors that could cause actual results to differ materially from those contemplated in any forward-looking statements made by us herein are discussed in filings we make with the United States Securities and Exchange Commission (SEC), including our Annual Report on Form 10-K and subsequent reports on Form 10-Q and Form 8-K. These factors include, but are not limited to:

  • any inability to successfully develop, obtain regulatory approval for, or construct transmission and distribution, and our nuclear generation projects;
  • the physical, financial and transition risks related to climate change, including risks relating to potentially increased legislative and regulatory burdens, changing customer preferences and lawsuits;
  • any equipment failures, accidents, critical operating technology or business system failures, severe weather events, acts of war, terrorism or other acts of violence, sabotage, physical attacks or security breaches, cyberattacks or other incidents that may impact our ability to provide safe and reliable service to our customers;
  • any inability to recover the carrying amount of our long-lived assets;
  • disruptions or cost increases in our supply chain, including labor shortages;
  • any inability to maintain sufficient liquidity or access sufficient capital on commercially reasonable terms;
  • the impact of cybersecurity attacks or intrusions or other disruptions to our information technology, operational or other systems;
  • a material shift away from natural gas toward increased electrification and a reduction in the use of natural gas;
  • failure to attract and retain a qualified workforce;
  • inflation, including increases in the costs of equipment, materials, fuel and labor;
  • the impact of our covenants in our debt instruments and credit agreements on our business;
  • adverse performance of our defined benefit plan trust funds and Nuclear Decommissioning Trust Fund and increases in funding requirements and pension costs;
  • fluctuations in, or third party default risk in wholesale power and natural gas markets, including the potential impacts on the economic viability of our generation units;
  • our ability to obtain adequate nuclear fuel supply;
  • changes in technology related to energy generation, distribution and consumption and changes in customer usage patterns;
  • third-partycredit risk relating to and purchase of nuclear fuel;
  • any inability to meet our commitments under forward sale obligations and Regional Transmission Organization rules;
  • reliance on transmission facilities to maintain adequate transmission capacity for our nuclear generation fleet;
  • the impact of changes in state and federal legislation and regulations on our business, including PSE&G's ability to recover costs and earn returns on authorized investments;
  • PSE&G's proposed investment programs may not be fully approved by regulators and its capital investment may be lower than planned;
  • our ability to advocate for and our receipt of appropriate regulatory guidance to ensure long-term support for our nuclear fleet;
  • adverse changes in and non-compliance with energy industry laws, policies, regulations and standards, including market structures and transmission planning and transmission returns;
  • risks associated with our ownership and operation of nuclear facilities, including increased nuclear fuel storage costs, regulatory risks, such as compliance with the Atomic Energy Act and trade control, environmental and other regulations, as well as financial, environmental and health and safety risks;
  • changes in federal and state environmental laws and regulations and enforcement;
  • delays in receipt of, or an inability to receive, necessary licenses and permits and siting approvals; and
  • changes in tax laws and regulations.

All of the forward-looking statements made in this presentation are qualified by these cautionary statements and we cannot assure you that the results or developments anticipated by management will be realized or even if realized, will have the expected consequences to, or effects on, us or our business, prospects, financial condition, results of operations or cash flows. Readers are cautioned not to place undue reliance on these forward-looking statements in making any investment decision. Forward-looking statements made in this presentation apply only as of the date of this presentation. While we may elect to update forward-looking statements from time to time, we specifically disclaim any obligation to do so, even in light of new information or future events, unless otherwise required by applicable securities laws.

The forward-looking statements contained in this presentation are intended to qualify for the safe harbor provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.


PSEG Investor Update November 2023

GAAP Disclaimer

PSEG also includes forward-looking estimates of non-GAAP Operating Earnings, non-GAAP Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) and non-GAAP Funds From Operations (FFO), including the non-GAAP ratio FFO/Debt, in this presentation. Non-GAAP EBITDA excludes the same items as our non-GAAP Operating Earnings measure, as well as income tax expense (except for production tax credits (PTCs)), interest expense and depreciation and amortization. Non-GAAP FFO reflects cash from operations excluding working capital and adjusts for certain items including taxes on asset sales, cost of removal and energy efficiency investments. Non- GAAP Debt consists of long-term debt, short-term debt and other imputed debt primarily related to an unfunded pension obligation. Non-GAAP EBITDA and non-GAAP FFO, as referenced in this presentation, may not be comparable to similarly titled measures used by other companies.

Given the forward-looking nature of non-GAAP Operating Earnings, non-GAAP Adjusted EBITDA and non-GAAP FFO estimates and our inability to project certain reconciling items that would be excluded from the most directly comparable GAAP measures - such as MTM and NDT gains (losses), with respect non-GAAP Operating Earnings and non-GAAP EBITDA; working capital (including accounts receivable/payable, cash collateral), adjustments to Net Income (including changes in regulatory assets/liabilities, deferred taxes) with respect to non-GAAP FFO and non-GAAP debt and imputed debt (including unfunded pension obligation) with respect to non-GAAP debt - due to the volatility, complexity and low visibility of these items, PSEG is unable to reconcile these non-GAAP financial measures to the most directly comparable GAAP financial measure. These items are uncertain, depend on various factors, and may have a material impact on our future GAAP results. Guidance included herein is as of October 31, 2023.

From time to time, PSEG and PSE&G release important information via postings on their corporate Investor Relations website at Investors and other interested parties are encouraged to visit the Investor Relations website to review new postings. You can sign up for automatic email alerts regarding new postings at the bottom of the webpage at https://investor.pseg.comor by navigating to the Email Alerts webpage here. The information on https://investor.pseg.comand not incorporated herein and is not part of this communication.


PSEG Investor Update November 2023

Public Service

Enterprise Group

Ralph LaRossa

Dan Cregg

Chair, President & CEO

Executive Vice President & CFO

PSEG Investor Update November 2023

PSEG 2023: Increased Strategic Clarity



  • Regulated Operations Represent ~85%-90% of PSEG's non-GAAP Operating Earnings

Over Next 5 Years

NJ's Largest T&D Utility:

  1. Million Electric and
  1. Million Gas Customers

PSEG Power & Other*

  • PSEG Will Retain Nuclear Fleet

Production Tax Credit makes PSEG Nuclear's cash flows more predictable and provides downside price protection

  • Exited Offshore Wind Generation,
    Streamlining Business and Eliminating Project Risk

* PSEG Power & Other includes PSEG Nuclear, Gas Operations, PSEG Long Island, Offshore wind lease area and potential transmission investments, potential hydrogen investments, Parent and other.


PSEG Investor Update November 2023

PSEG's Powering Progress Vision: Powering a future where people use less energy, and it's cleaner, safer and delivered more reliably than ever

  • Operational Excellence: Best-in-classutility and strong nuclear performance
  • Financial Strength: Solid balance sheet to fund our growth objectives
    • No new equity required to support 5-year capital plan
    • Solid investment grade ratings supported by credit metrics that allow for incremental investment
    • PTC provides long-term certainty and downside price protection for Nuclear
    • Cost control supports customer affordability with one of the lowest gas bills and below average electric bills vs. regional peers
  • Disciplined Investment: >90% of capital allocation to PSE&G, aligned with clean energy policies
    • Investments to modernize utility infrastructure - Energy Strong, "Last Mile" reliability, GSMP
    • Investments to support decarbonization - Energy Efficiency, EV, AMI, Solar and other

...which produces a strong business mix and platform for predictable growth


PSEG Investor Update November 2023

PSEG Financial Outlook:

More Predictability from an Improved Business Profile

Well Positioned for the Future

Exited Merchant Fossil Generation

Eliminates market price volatility on earnings, proceeds used to pay down debt, and

return capital to shareholders

Exited Offshore Wind Generation

Completed sale of 25% equity stake in Ocean Wind 1, recouping full investment

Evaluating options to monetize our 50% stake in Garden State Offshore Energy acreage

Decision to Retain Nuclear Assets

PTC provides downside price protection through 2032

Enhances PSEG Power & Other cash flow visibility and predictability

Progress on Reducing Pension Variability

BPU pension accounting order helps reduce volatility in PSE&G earnings

Recent "lift-out" of ~$1 billion of PSEG Power & Other pension obligations

PSE&G Transmission Formula Rate

Provides timely recovery of capital investments

PSE&G Conservation Incentive Program

Decoupling of volumes from revenues supportive of widespread adoption of EE investments

PSE&G's Robust Capital Program

Long-term visibility from infrastructure replacement and support of NJ's decarbonization efforts

PSEG Financial Strength

Solid balance sheet enables funding of 5-year capital investment program without new equity

PSEG Compelling Risk-Adjusted Return Opportunity

Continued opportunity for consistent and sustainable dividend growth

Supports our long-term earnings growth outlook of 5%-7% through 2027


PSEG Investor Update November 2023

PSEG 2023: Growth Opportunities Aligned with Clean Energy Policies

Significant events (i.e., the Northeast Blackout of 2003 and Superstorm Sandy) have driven policy changes and led to investment opportunities

Future investment will address growing demand for electrification and need for an even more reliable grid, all aligned with New Jersey and federal energy policies

Key State Policies

  • BPU recently issued 2nd triennial Energy Efficiency framework
  • NJ Executive Orders Advance 100% Clean Energy by 2035 (#315), Prioritizes Electrification of Building Sector (#316), and Initiates Stakeholder Proceeding on Future of Natural Gas Utilities (#317)
  • BPU Order for Energy Efficiency Adoption (2020)
  • NJ Energy Master Plan (2020)
  • NJ Clean Energy Act (2018)
  • NJ Zero Emissions Certificate Law (2018)

Key Federal Policies

  • Inflation Reduction Act (2022)
  • Infrastructure Investment and Jobs Act (2021)
  • PIPES Act (2020) Supports Replacement of Aged Gas Pipeline Infrastructure

PSEG Opportunities

  • "Last Mile" distribution system investments increase reliability and prepare for electrification
  • GSMP targets methane leaks and infrastructure replacement
  • EE programs reduce usage, emissions and customer bills
  • EV programs address the #1 source of emissions in NJ
  • PTC helps preserve NJ nuclear units; offers opportunities
    to invest in uprates, fuel-cycle extension and license extension; incremental opportunities in hydrogen and non-fossil fuel delivery
  • Investment upside from NJ Governor's Executive Orders


PSEG Investor Update November 2023

PSEG 2023: Key Assets and Leadership

PSE&G - Best-in-Class Regulated Electric & Gas T&D Utility

  • Top decile safety performance
  • Recipient of PA Consulting 2023 ReliabilityOne® Award for Outstanding Reliability Performance in the Mid-Atlantic Metropolitan Service Area for 22 consecutive years
  • #1 in Customer Satisfaction with both Residential Electric and Natural Gas Service in the East among Large Utilities by J.D. Power in 2022*
  • Robust pipeline of regulated investment opportunities
  • Affordability as evidenced by below average residential electric bills in the region and among the lowest residential gas customer bills in region
  • EEI Edison Award for our industry-leading efforts to protect NJ communities and customers from extreme weather conditions
  • Award-winningSolar, Energy Efficiency, and EV programs

PSEG Power & Other

  • Solid nuclear operations with exemplary ratings on all units, gas supply operations benefiting PSE&G customers, and PSEG Long Island
  • Nuclear fleet consisting of 3,766 MW carbon-free, base load assets with a PTC stabilized revenue stream and opportunities for low-cost uprates and other enhancements
  • Supporting revenues from Gas Operations, PSEG Long Island, and other investments offset by Parent interest

PSEG's Workforce of 12,500 Engaged Associates Led by an Experienced Management Team with Continuity

  • CEO, CFO, GC, Presidents of PSE&G and PSEG Nuclear have an average of > 25 years of service with PSEG in a variety of roles
  • Strong union partnerships with our six unions and the ~7,700 employees they represent:
    • Reached new four-year labor agreements in Q2 2023 with all of our unions representing employees in New Jersey
    • PSEG Long Island reached four-year labor agreement through November 13, 2027

* PSE&G received the highest score in the East Large segment of the J.D. Power 2022 U.S. Electric Utility Residential Customer Satisfaction Study of customers' satisfaction with electric utility residential services


and the J.D. Power 2022 U.S. Gas Utility Residential Customer Satisfaction Study of customers' satisfaction nationally among gas residential customers. Visit jdpower.comawardsfor more details.

PSEG Investor Update November 2023

PSEG 2023: Financial Strength to Achieve Strategic Plan

Long-Term Growth Outlook of 5%-7% for 2023-2027

  • Primary contributor is PSE&G's 5%-7% Net Income growth rate over this 5-year period
  • Nuclear revenues at PTC threshold level offer stability that supports long-term growth outlook
  • Addresses cost updates to pension, interest and inflation

Robust Utility Capital Investment Plan of $15.5B-$18B for 2023-2027

  • Continuation of current investments focused on system modernization, "Last Mile" reliability and clean energy programs
  • Long runway of system infrastructure investments, decarbonization and electrification opportunities

Solid Balance Sheet

  • Supports 5-year capital plan with no new equity or required asset sales, and potential for incremental investments
  • Solid investment grade credit ratings with improved business mix

2023 Indicative Shareholder Dividend Increased by 5.6% over 2022*

  • Opportunity for consistent, sustainable growth

Compelling Growth Profile of PSE&G, Complemented by PSEG Power & Other's Nuclear PTC Enhanced Outlook

*All future decisions and declarations regarding dividends on the common stock are subject to approval by the Board of Directors.



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PSEG - Public Service Enterprise Group Inc. published this content on 10 November 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 November 2023 15:05:18 UTC.