Public Service : PSEG Notifies NRC of Intention to Seek 20-Year License Renewals for South Jersey Nuclear Plants

(April 4, 2024 - LOWER ALLOWAYS CREEK, N.J.) - PSEG subsidiary PSEG Nuclear, LLC, has notified the Nuclear Regulatory Commission (NRC) of its intent to seek subsequent license renewal (SLR) for the Salem Generating Station (Salem), Units 1 and 2, and Hope Creek Generating Station (Hope Creek), which collectively produce nearly half of New Jersey's electricity and 85% of the state's carbon-free generation. The three generating stations are co-located on one site on the Artificial Island in Lower Alloways Creek Township, Salem County.

Through a letter of intent submitted on March 28, 2024, the company informed the NRC that it expects to submit the application for extension in the second quarter of 2027, which would commence an approximate 2-year comprehensive NRC review and approval process to help ensure the continued delivery of 3,468^[1] MW of clean, carbon-free generation. This early notification is intended to provide the NRC with time to ensure resource availability when the formal applications are submitted in 2027. If approved by the NRC, the license renewal applications for the PSEG operated Salem Unit 1 and Unit 2 would be extended from 2036 and 2040 to 2056 and 2060, respectively, and Hope Creek station would be extended from the current 2046 expiration to 2066.

"For more than five decades, the nuclear generating stations in South Jersey have safely generated reliable, always-on carbon-free energy", said Charles (Chaz) McFeaters, president and chief nuclear officer of PSEG Nuclear. "Seeking to renew our licenses signifies our commitment to continuing to contribute to New Jersey's clean energy future and serving as a vital economic engine for the local community. "I'd like to recognize Congressman Bill Pascrell, the author of the federal nuclear production tax credit legislation in Congress, without which we would not be considering these investments in the site."

"Nuclear power is a clean resource that provides reliability and diversity to the state's supply of energy," stated State Senator John Burzichelli. "Since 1977, PSEG Nuclear's commitment to South Jersey has been at the heart of our region's economy and their continued and expanded investment means more opportunities for our community as part of New Jersey's clean energy future."

"South Jersey's nuclear plants consistently, reliably and affordably deliver power for our state, day and night, regardless of the weather," stated State Senator Michael Testa. "PSEG's continued investments are a win-win, yielding benefits in the form of clean energy for our state and economic activity for our region."

"In addition to its 1,600 strong regular workforce, PSEG regularly engages with skilled workers in the trades to support refueling outages and major project work," said Daniel Cosner, president of the South Jersey Building Trades, "which benefits our region's economy through interactions with local businesses and engagement in the community."

"In today's dynamic energy landscape, clean nuclear power remains a cornerstone of reliability and sustainability nationwide, said Maria Korsnick, president and CEO of Nuclear Energy Institute. "As we navigate the complexities of climate change and energy independence, nuclear energy's significant contribution to clean, always-on power is paramount. PSEG's commitment to license renewal underscores the pivotal role nuclear plays in shaping our clean energy future."

In addition to ambitious clean energy goals, New Jersey prioritizes economic development and attracting new industries and their related infrastructure. PSEG remains committed to supporting New Jersey's economic growth plans, including new opportunities that require the highly reliable, 24x7 base load, carbon-free power produced by our nuclear plants.

PSEG's Salem 1 and 2 and Hope Creek units also deliver positive local economic impacts, directly employing approximately 1,600 people with additional contract workers supporting refueling outages and major project work each year. The generating stations also foster an extensive indirect workforce throughout the community as employees engage with local services. In addition, since Salem Unit 1 came online in 1977, employees of the generating station have extensively given back to the community through volunteerism and partnerships with local nonprofits and agencies.

Beginning in 2024, the nuclear Production Tax Credit (PTC) created in the federal Inflation Reduction Act (IRA) will provide nuclear generators with nine years of financial support through 2032. The pricing visibility into 2032 provided by the nuclear PTC drove PSEG's decision to retain and grow our nuclear fleet via prudent capital investments and will keep our state's carbon-free nuclear fleet viable for the long-term.

Over $100 million in nuclear capital investment projects have already been approved and are in progress. These include plant upgrades and a transition to a 2-year operating cycle at the Hope Creek Generating Station.

PSEG Nuclear is also developing detailed plans to implement power uprates for both Salem units and to upgrade and optimize the nuclear fleet's turbine generator trains, which would enable the units to generate more megawatts per year. Finally, we are tracking progress in the United States nuclear industry to transition both Salem units to 2-year operating cycles, when feasible.

The Salem Generating Station reactors began commercial operation in 1976 (Unit 1) and 1980 (Unit 2), while the Hope Creek Generating Station began commercial operation in 1986. The stations obtained their first 20-year operating license renewals from the NRC in 2011.

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About PSEG

Public Service Enterprise Group (PSEG) (NYSE: PEG) is a predominantly regulated infrastructure company focused on a clean energy future. Guided by its Powering Progress vision, PSEG aims to power a future where people use less energy, and it's cleaner, safer and delivered more reliably than ever. PSEG's commitment to sustainability is demonstrated in our net-zero 2030 climate vision and our inclusion on the Dow Jones Sustainability North America Index. PSEG's businesses include Public Service Electric and Gas Co. (PSE&G), PSEG Power and PSEG Long Island (https://corporate.pseg.com).

[1] Refers to megawatt generating capacity for Salem 1 and 2 (2,295 MW) and Hope Creek (1,173 MW) generating stations.