Slides
Page 1
11 PSEG Investor Update March 2025 Leading toward a sustainable future
Page 2
22 Certain of the matters discussed in this report 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, natural disasters, 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; • an increasing demand for power and load growth, potentially compounded by a shift away from natural gas toward increased electrification; • failure to attract and retain a qualified workforce; • increases in the costs of equipment, materials, fuel, services 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; • any inability to enter into or extend certain significant contracts; Forward-Looking Statements • development, adoption and use of Artificial Intelligence by us and our third-party vendors; • 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-party credit risk relating to our sale of nuclear generation output and purchase of nuclear fuel; • any inability to meet our commitments under forward sale obligations and Regional Transmission Organization rules; • 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 projects or programs may not be fully approved by regulators and its capital investment may be lower than planned; • our ability to receive sufficient financial support for our New Jersey nuclear plants from the markets, production tax credit and/or zero emission certificates program; • 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, and third-party operation of co-owned 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 operational, financial, environmental and health and safety risks; • changes in federal, state and local 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 report 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 report apply only as of the date of this report. 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 report 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 March 2025
Page 3
33 From time to time, PSEG and PSE&G release important information via postings on their corporate Investor Relations website at https://investor.pseg.com. Investors and other interested parties are encouraged to visit the Investor Relations website to review new postings. Y ou can sign up for automatic email alerts regarding new postings at the bottom of the webpage at https://investor.pseg.com or by navigating to the Email Alerts webpage here. The information on https://investor.pseg.com and https://investor.pseg.com/resources/email-alerts/default.aspx is not incorporated herein and is not part of this communication. GAAP Disclaimer PSEG presents Operating Earnings in addition to its Net Income/(Loss) reported in accordance with accounting principles generally accepted in the United States (GAAP). Operating Earnings is a non-GAAP financial measure that differs from Net Income/(Loss). Non-GAAP Operating Earnings exclude the impact of gains (losses) associated with the Nuclear Decommissioning Trust (NDT), Mark-to-Market (MTM) accounting and other material infrequent items. The last two slides in this presentation (Slides A and B) include a list of items excluded from Net Income/(Loss) to reconcile to non-GAAP Operating Earnings. Management uses non-GAAP Operating Earnings in its internal analysis, and in communications with investors and analysts, as a consistent measure for comparing PSEG’s financial performance to previous financial results. The presentation of non-GAAP Operating Earnings is intended to complement, and should not be considered an alternative to, the presentation of Net Income/(Loss), which is an indicator of financial performance determined in accordance with GAAP. In addition, non-GAAP Operating Earnings as presented in this release may not be comparable to similarly titled measures used by other companies. 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/(Loss) (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 February 25, 2025. PSEG Investor Update March 2025
Page 4
Public Service Enterprise Group PSEG Investor Update March 2025
Page 5
55 PSEG 2025: A Strong Business Mix and Predictable Growth PSE&G PSEG Power & Other • Regulated Operations Represent ~90% of PSEG’s non-GAAP Operating Earnings Over Next 5 Years NJ’s Largest T&D Utility: 2.4 Million Electric and 1.9 Million Gas Customers • Carbon-Free PSEG Nuclear Fleet Production Tax Credit makes PSEG Nuclear’s cash flows more predictable and provides downside price protection PSEG PSEG Investor Update March 2025
Page 6
6 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-class utility and exemplary nuclear performance • PSE&G has been honored for best-in- class operations Disciplined Investment: >90% of capital allocation through 2029 to PSE&G and other regulated investments, aligned with energy transition policies • Investments to modernize utility infrastructure – Energy Strong, “Last Mile” reliability, GSMP • Investments to support decarbonization – Energy Efficiency, EV, Solar and other • Awarded investment in competitively bid process to build regulated transmission Financial Strength: Solid balance sheet to fund our growth objectives • No new equity or asset sales required to support 5-year capital plan through 2029 • 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 favorable regional comparisons PSEG Investor Update March 2025
Page 7
77 PSEG Financial Outlook | More Predictable, Well Positioned for the Future Settled Major Regulatory Filings in 2024 • Achieved balanced settlement of first distribution base rate case in six years; Recovered all investments deemed prudent for recovery; Maintained favorable regional affordability profile • Clean Energy Future – Energy Efficiency II settlement approved for ~$2.9B spend over 6 years Retained Carbon-Free Nuclear Fleet • PTC provides downside price protection through 2032 • Enhances PSEG Power & Other cash flow visibility and predictability Achieved Reduction of Pension Variability • BPU approved pension accounting order in February 2023 and pension mechanism in October 2024, helping to reduce volatility in PSE&G earnings • “Lift-out” of ~$1 billion of PSEG Power & Other pension obligations PSE&G Conservation Incentive Program • Decoupling of volumes from revenues supportive of widespread adoption of EE investments PSE&G Transmission Formula Rate • Provides contemporaneous recovery of capital 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 Compelling Risk-Adjusted Return Opportunity • Continued opportunity for consistent and sustainable dividend growth • Supports our long-term non-GAAP Operating Earnings growth outlook of 5%-7% through 2029 PSEG Investor Update March 2025
Page 8
88 Higher/Expanded Regulated Investment in Clauses • Gas System Modernization Program III - potential for incremental in-state resiliency investment • Electric System Infrastructure Advancement Program (IAP) – next phase of Energy Strong Regional Competitive Transmission Projects • Future PJM Transmission Window Solicitations Clean Energy Future Programs • Clean Energy Future – EV Medium & Heavy Duty • Clean Energy Future – Battery Storage PSE&G Higher Demand Related Capital • New business potential driven by new data center inquiries and electric transition Premium Power Price Opportunities Above PTC • Co-located data center deal potential at Artificial Island and other nuclear PPAs • Energy & capacity market price escalation Physical Upgrades to Nuclear to Increase Output • Nuclear Capacity Uprates at Artificial Island • Nuclear Fuel Cycle Extensions • Nuclear Operating License Extensions Alternative Energy Investment Opportunities • NJ Pre-Build Infrastructure Solicitation • Hydrogen opportunities PSEG’s 2025-2029 Outlook Incorporates Solid Growth Pipeline with Upside PSEG Investor Update March 2025
Page 9
9 PSEG Growth Opportunities Aligned with Key Energy Transition Policies Significant events (i.e., Northeast Blackout of 2003 and Superstorm Sandy) have driven policy changes and led to investment opportunities Future investment will address growing demand for electricity and need for an even more reliable grid, all aligned with New Jersey and federal energy policies State Policies: • NJ Governor signed legislation adopting $500M of tax incentives to attract new investment in Artificial Intelligence (AI) to NJ (2024) • BPU issued 2nd triennium Energy Efficiency framework (2023) • February 2023 NJ Governor’s Executive Orders advance 100% Clean Energy by 2035 (#315); prioritize Electrification of Building Sector (#316), and initiate 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) Federal Policies: • Inflation Reduction Act (2022) • Infrastructure Investment and Jobs Act (2021) • PIPES Act (2020) Supports Replacement of Aged Gas Pipeline Infrastructure PSEG Investor Update March 2025
Page 10
10 PSEG: Key Assets and Leadership PSE&G – Best-in-Class Regulated Electric & Gas T&D Utility Focused on Affordability, Reliability and Customer Satisfaction • Top quartile safety performance • Recipient of PA Consulting 2024 ReliabilityOne® Award for Outstanding Reliability Performance in the Mid-Atlantic Metropolitan Service Area for 23 consecutive years • #1 in Customer Satisfaction with Residential Electric and Gas Service in the East among Large Utilities by J.D. Power in 2024* • Robust pipeline of regulated investment opportunities • Residential electric bills are average for the region • Residential gas bills are the lowest in the region • Award-winning Solar, EE and EV programs • Awarded 2024 ENERGY STAR® Partner of the Year for Sustained Excellence 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 3,758 MW carbon-free, baseload 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 ~13,000 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 ~7,800 employees they represent o In 2023, PSEG reached four-year labor agreements with all unions representing employees in New Jersey and PSEG Long Island * For J.D. Power 2024 award information, visit jdpower.com\awards. PSEG Investor Update March 2025
Page 11
11 PSEG: Financial Strength to Achieve Strategic Plan Long-Term non-GAAP Operating Earnings Growth Outlook of 5%-7% for 2025-2029 • Outlook is based on the midpoint of 2025 guidance range (a 9% higher baseline) and assumes the PTC threshold price • Primary contributor is PSE&G’s growth over this 5-year period • Rate Base CAGR of 6%-7.5% driven by expanded capital program starting from ~12% higher rate base at YE 2024 vs YE 2023 • Nuclear revenues at PTC threshold level offer stability that supports long-term growth outlook Robust Regulated Capital Investment Plan Updated to $21B-$24B for 2025-2029; total PSEG capital plan of $22.5B-$26B • Clean Energy Future - Energy Efficiency II (CEF-EE II) filing approved for ~$2.9 billion to be spent over a six-year period to deliver energy efficiency programs and measures to help New Jersey residents and businesses save energy, reduce utility costs and lower carbon emissions • Expansion of current investments focused on system modernization, “Last Mile” reliability and clean energy programs, reflecting long runway of infrastructure investments, decarbonization and electrification opportunities, and meeting growing customer demand Solid Balance Sheet • Supports 5-year capital plan with no new equity or required asset sales through 2029 • Solid investment grade credit ratings with strong business mix Annualized Indicative Dividend Rate of $2.52 Per Share for 2025 Represents 5% Increase over 2024* • Proven track record of consistent, sustainable dividend growth Compelling Growth Profile of PSE&G, Complemented by PSEG Power & Other’s Nuclear PTC Enhanced Outlook *All future decisions and declarations regarding dividends on the common stock are subject to approval by the Board of Directors. PSEG Investor Update March 2025
Page 12
12 Lowest A&G Cost/Customer vs. Peers^^ Delivering Highest Customer Reliability at Lowest Cost: Achieving low SAIDI outage scores with Lowest Distribution O&M spend* HIGHER RELIABILITY Achieving Highest Customer Satisfaction at Lowest Cost: For Overall Residential Customer Satisfaction^ HIGHER SATISFACTION Lowest Cost, but More Leaks/Mile than Peers: Age of cast iron system drives need for GSMP program** LOWER LEAKS Peers Peers LOWER COST LOWER COST LOWER COST Gas Peer Companies Electric Peer Companies LOWER COST PSE&G Provides Compelling Value for Customers We continuously target top quartile performance to deliver better service, at lower cost * Reliability metrics based on IEEE standards and exclude Major Event Days. ** Sources: 2023 Annual LDC filings with State Commissions, 2023 Annual Form PHMSA. ^ Sources: 2023 Annual LDC Filings with State Commissions, 2023 FERC Form 1s, 2023 JD Power Residential Customer Satisfaction Surveys. Also, peer group includes all companies included in the JD Power Gas and Electric "Large East" regions at the consolidated level and excludes LIPA. ^^ Peer group includes all operating companies classified by SNL as an “Electric Utility” or “Diversified Utility” with a customer count of more than 500,000 in CT, DE, MD, NJ, NY or PA. A&G costs exclude Account 926 (Employee Pensions and Benefits). 0 50 100 150 200 250 Electric Gas PSE&G Gas (#1) 640 660 680 700 720 740 760 780 800 0 50 100 150 200 250 300 350 400 Overall Customer SatisfactionDistribution O&M per Customer ($) PSE&G Gas PSE&G Elec PSE&G Elec (#1) 0 50 100 150 200 250 0 100 200 300 400 SAIDI (minutes per year) Electric Distribution O&M per Customer ($) PSE&G 0.00 0.01 0.02 0.03 0.04 0.05 $0 $50 $100 $150 $200 $250 $300 $350 Repaired System Leaks per Mile of Mains Gas Distribution O&M per Customer ($) PSE&G PSEG Investor Update March 2025
Page 13
Public Service Electric & Gas PSEG Investor Update March 2025
Page 14
14 PSE&G – A Single State, Dual Jurisdiction Utility • Electric and Gas Distribution • Utility Provider of Energy Efficiency and Renewable Energy Programs • Electric Transmission • Appliance Service Provider Customer Data1 Electric Gas Total Customers 2.4 Million 1.9 Million 5-YR Annual Growth* 0.9% 0.7% Total Sales 40,651 GWh 2,371M Therms** Sales Mix1 Electric Gas Residential 34% 58% Commercial 57% 38% Industrial 9% 4% 1 Customer and Sales Mix data are as of year-end 2024. * Annual customer growth uses 2019 as base year. **Gas Firm sales only. *** Includes CWIP; year-end CWIP 2024 balance was ~$1.1B and year-end CWIP 2023 balance was ~$1.3B. PSE&G YE 2024 Rate Base*** Distribution $19.1 B 56% Transmission $13.3 B 39% Clean Energy $1.5 B 5% ~$34 B ~$30 B PSE&G YE 2023 Rate Base*** PSEG Investor Update March 2025 New Jersey’s largest transmission and distribution utility
Page 15
1515 Top Safety and Reliability Performance Metrics Driven by Nonstop Focus on Continuous Improvement Benchmarks based on panels of comparable US utilities. PSE&G Open Leaks data for 2024 updated as of February 28, 2025. Consistent top performance in OSHA recordable incidence Sustained top decile performance in electric reliability results Open year-end gas leaks reduced by 65% from 2019 Top Decile 1st Quartile 2nd Quartile 3rd Quartile PSE&G OSHA Recordable Incidence Rate SAIDI Open Leaks PSEG Investor Update March 2025
Page 16
16 $75 $88 $91 $93 $100 $124 $133 $135 $135 $156 $178 $179 Average = $124 $0 $20 $40 $60 $80 $100 $120 $140 $160 $180 $200 JCP&L PP&L BG&E Rockland Electric PECO PSE&G LIPA O&R Atlantic Electric CL&P Con Ed UI Monthly Electric Bills Based upon a calculation of monthly bills for an electric customer using 500 kilowatt -hours using rates as of October 1, 2024 (P SE&G as of October 15, 2024), and a gas customer using 100 therms using rates as of October 1, 2024 (PSE&G as of October 15, 2024). Rates sourced from public com pany documents. PSE&G’s residential electric bills are average for the region and residential gas bills are the lowest of all regional peers $113 $119 $139 $146 $149 $150 $152 $155 $171 $183 $200 $260 $0 $50 $100 $150 $200 $250 $300 PSE&G PECO O&R E-Town CNG SCG NJN BG&E Yankee SJG BUG Con Ed Average = $161 Monthly Gas Bills PSE&G Peer NJ Utilities Peer Regional Utilities outside of NJ PSEG Investor Update March 2025 Atlantic City Electric
Page 17
17 PSE&G Combined Bills ~3% of Median NJ Income, Favorable “Share of Wallet” vs. Lower-Cost Regions Affordability of the combined bill has improved ~33% since 2009 for median-income customers and ~36% for low-income customers 4.5% 4.3% 4.0% 3.6% 3.8% 3.7% 3.3% 3.1% 2.9% 2.8% 2.5% 2.6% 2.5% 2.5% 3.0% 2.8% 3.0% 2.8% 2.6% 1.9% 2.0% 2.4% 2.2% 2.0% 1.6% 1.7% 1.6% 1.5% 1.5% 1.5% 1.6% 1.9% 1.5% 1.8% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024E Current (2) Combined Bill as a % of NJ Median Income Combined Bill as a % of Low Income Threshold (1) Based on a typical residential electric and gas customer, using electric rates as of June 1 and gas rates as of January 1. Th e current electric customer uses 683 kilowatt-hours per summer month and 6,700 kilowatt-hours on an annual basis and a current gas heating customer uses 172 therms per winter month and 1,040 therms on an annual basis. Notes: NJ Median income source https://fred.stlouisfed.org/series/MEHOINUSNJA646N. 2024 is not available, therefore assume 3% annual increase over 2023. Income level of USF, the lowest threshold of the thre e low-income programs, is 175% of the Federal Poverty Line. Assumes the customer also qualifies for LIHEAP and Lifeline. 2022 results were adjusted to normal levels of customer assistance, which was elevated in 2022 due to funds received through the American Recovery Plan. (2) 'Current' represents rates as of October 15, 2024, and maintains the same income and benefit levels as 2024E. PSEG Investor Update March 2025 PSE&G Electric & Gas Combined Bills(1) % of New Jersey Household Income Including Low-Income Customers After Assumed Credits 17
Page 18
18 0% 1% 2% 3% 4% 5% 6% Mississippi West Virginia Arkansas Kentucky Georgia Alabama Louisiana Maine Oklahoma New York South Carolina Connecticut Tennessee Michigan Florida Indiana North Carolina Texas Vermont Kansas New Hampshire Rhode Island Pennsylvania Missouri South Dakota Illinois Virginia New Mexico North Dakota Iowa Ohio Wyoming Nevada Arizona Wisconsin Delaware Nebraska Massachusetts Montana Minnesota Idaho New Jersey Washington Maryland Oregon Colorado California PSE&G Utah Electricity Natural Gas PSE&G National Residential Customer Share of Wallet (percent of income) PSEG Investor Update March 2025 Share of Wallet – PSE&G is a Top Performer Nationally in Affordability PSE&G has demonstrated top decile affordability nationwide while being a perennial reliability leader Sources: • State Electric and Gas data for 2022 sourced from the Energy Information Administration (EIA). PSEG Natural Gas was supplemented with data from American Gas Association (AGA). • Income data for 2022 sourced from the Federal Reserve Economic Data. PSEG Investor Update March 2025
Page 19
19 Regulated 5-Year Capital Investment Plan of $21B-$24B 0 1 2 3 4 5 6 2024 2025E 2026E 2027E 2028E 2029E 2025E – 2029E Transmission Electric Distribution Gas Distribution Clean Energy Transmission Non-PSE&G* Low to High Investment Range** 2024-2028 Low 2024-2028 High ($ Billions) Includes AFUDC. CEF-EC/AMI is included in Electric Distribution. Note: The Maryland Piedmont Reliability Project that was awarded to PSEG by PJM in December 2023 will be managed and owned outside of PSE&G but is included here given FERC regulated rate base formula rate recovery. The low end of the range includes extensions of GSMP and CEF-EE. The hashed portion of the chart represents incremental PSE&G investment that may occur for programs related to gas and electric modernization, energy efficiency, energy storage, electric vehicles, load growth and solar. Driven by Infrastructure Modernization, Energy Efficiency, and Growing Customer Demand PSEG Investor Update March 2025
Page 20
20 Regulated Capital Investment Plan ~$3B Higher for 2025-2029 Includes AFUDC. CEF-EC/AMI is included in Electric Distribution. Note: The Maryland Piedmont Reliability Project that was awarded to PSEG by PJM in December 2023 will be managed and owned outside of PSE&G but is included here given FERC regulated rate base formula rate recovery. The low end of the range includes extensions of GSMP and CEF-EE. The hashed portion of the chart represents incremental PSE&G investment that may occur for programs related to gas and electric modernization, energy efficiency, energy storage, electric vehicles, load growth and solar. 0 2 4 6 8 10 12 14 16 18 20 22 24 Transmission Electric Distribution Gas Distribution Clean Energy Transmission Non-PSE&G* Low to High Investment Range** ($ Billions) 2024-2028E: $18B-$21B Rate Base CAGR: 6%-7.5% 2025E-2029E: $21B-$24B Rate Base CAGR: 6%-7.5% 2023-2027E: $15.5B-$18B Rate Base CAGR: 6%-7.5% Consistent rate base CAGR reflects ~12% higher rate base at year-end 2024 versus year-end 2023 PSEG Investor Update March 2025
Page 21
21 0 5 10 15 20 25 30 35 40 45 50 2023 2024 2025E 2026E 2027E 2028E 2029E ($ Billions) Transmission Electric Distribution Gas Distribution Clean Energy Transmission Non-PSE&G* Low to High Investment Range** Provide Consistent, Long-Term Rate Base Growth Includes CWIP and AFUDC. CEF-EC/AMI is included in Electric Distribution. Note: The Maryland Piedmont Reliability Project that was awarded to PSEG by PJM in December 2023 will be managed and owned outside of PSE&G but is included here given FERC regulated rate base formula rate recovery. The low end of the range includes extensions of GSMP and CEF-EE. The hashed portion of the chart represents incremental PSE&G investment that may occur for programs related to gas and electric modernization, energy efficiency, energy storage, electric vehicles, load growth and solar. Regulated Year-End Rate Base Robust Investment Opportunities PSEG Investor Update March 2025
Page 22
22 Transmission Investment Focused on 69kV Upgrades to Support Future Electrification Efforts and Load Growth • Investments in 69kV infrastructure over the last decade have resulted in 1,500 additional miles of 69kV lines. This has replaced aging systems and prepared the system to address load growth • The extensive 69kV network can allow for reduced times to energization for data center customers • Lifecycle investments focused on overhead conductor and pipe cable replacements and upgrades • Generation topology changes due to retiring plants and interconnections / upgrades for other renewables • Broader opportunities in transmission due to recent DOE study and PJM fast track proceeding, including competitively bid opportunities addressing reliability needs • Annual formula rate incorporates forward test year, eliminates investment and cost recovery lag, which provides predictable earnings growth PSEG Investor Update March 2025
Page 23
23 Electric Distribution Investment Focused on System Modernization, Providing Long Runway of Investment Opportunities to Maintain Our Best-in-Class Reliability We will build on the success of programs like Energy Strong and Infrastructure Advancement Program to meet current and future needs of our customers, including investments for: • “Last Mile” – Modernize circuits via targeted replacement of a myriad of asset types to support reliability, hardening and future electrification • Station Upgrades – Modernize or eliminate aging electric distribution substations and switchgear to support EV/DER growth and address expanded security requirements • Community Needs – Expertise in tailoring station design to harmonize with our communities • Technology – AMI, new enhanced capacitor banks and other technology to enable capabilities for remote monitoring and system control to support EV/DER integration, urban networks and cost reductions • Meeting Growing Customer Demand PSEG Investor Update March 2025
Page 24
24 Gas Distribution Investment Focused on Infrastructure Replacement, Accelerating Emission Reduction Benefits GSMP II extension settlement approved in October 2023: • ~$900M, 2-year extension (January 2024 – December 2025) • ~$750M accelerated clause-based recovery and $150M stipulated base • Replacement of a minimum of 400 miles of main • Sustains the thousands of jobs and skilled workforce created under GSMP II GSMP III filing: • Parties reconvened as planned in January 2025; current filing will be refreshed and if approved, work would commence in January 2026 Future GSMP+ = Assumed continued BPU approval and run rate (250 miles per year) and current base capital plan continues until all eligible remaining CI/US mileage is replaced. * Methane reductions starting from 2011 when greenhouse gas emissions were required to be reported by the U.S. EPA for gas distribution companies. Reduction forecast is based on former 40 CFR 98, Subpart W. This forecast does not include regulatory and calculation changes reflected in the revised 40 CFR 98, Subpart W released by the U.S EPA on May 6, 2024. GSMP II ext Impact of GSMP on Methane Reduction* Mileage of CI/US Inventory Remaining GSMP I GSMP II Future GSMP+ -12% -20% -42% -51% -64% -77% -85% -95% 5,259 4,784 4,440 3324 2,750 2,015 1,265 1,015 150 0 1,000 2,000 3,000 4,000 5,000 6,000 -120% -100% -80% -60% -40% -20% 0% 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024E 2025E 2026E 2027E 2028E 2029E 2030E 2031E 2032E 2033E 2034E 2035E 2036E 2037E Mileage of cast iron and unprotected steel main remaining % Reduction from Reported 2011 Subpart W Emissions Methane Level Mileage Remaining Future GSMP+ PSEG Investor Update March 2025 24
Page 25
25 PSE&G’s Award-Winning Clean Energy Future Programs are Delivering Benefits to Customers and Rate Base Growth Energy Efficiency BPU approved total programs since inception ~$3.2B investment + ~$1B for on-bill repayment financing Programs for Residential and C&I Customers including low-income, multi-family, small business and local government. For 2025, new program offerings in Building Decarbonization & Demand Response • BPU approved 30-month CEF-EE II program, ~$1.9B + ~$1B in on-bill repayment, effective January 1, 2025 • Winner of over 40 awards for Energy Efficiency and Clean Energy Jobs programs Energy Efficiency BPU approved total programs since inception ~$3.2B investment + ~$1B for on-bill repayment financing Energy Cloud “AMI” BPU approved $707M investment “Smart meters,” new software and product solutions to improve PSE&G processes and better manage the electric grid • CEF-EC/AMI program completed with ~2.2 million smart meters in-service • Foundation for better service by providing customers granular usage information, automated reconnections and faster outage detection Energy Cloud “AMI” BPU approved $707M investment Electric Vehicles BPU approved $166M investment Residential Smart Charging, Level 2 Mixed-Use Charging, and Public DC Fast Charging (Make- Ready) • Program on target, enrollments increasing due to education, outreach and supply chain improvements with ~20,000 chargers energized to date and an additional 8,000+ chargers in the application queue (1) • Program recognized with the 2024 Chartwell’s Electric Vehicle Leadership Council Silver Award • BPU to expected to address pending Medium and Heavy-Duty EV filings Electric Vehicles BPU approved $166M investment PSE&G’s Clean Energy Jobs Program has supported ~2,700 unemployed and underemployed people from low- to-moderate income areas secure clean energy careers (1) As of December 31, 2024. PSEG Investor Update March 2025
Page 26
26 Program Description Energy Efficient Products Offers incentives and on-bill repayment (OBR) for energy efficient equipment and appliances. Whole Home Provides comprehensive residential energy efficiency assessment and installation services to provide ‘one-stop shop’ for all applicable energy efficiency and decarbonization upgrades for PSE&G residential customers, including OBR, for weatherization and equipment replacement. Behavioral Provides electric and gas customers with information about their energy use, peer usage data, and suggested actionable steps to produce energy savings through behavioral changes and engagement with other energy efficiency programs. Income Qualified Similar offering to Whole Home program with 100% incentive coverage for assessment and efficiency upgrades for income-qualified residential customers; also includes enhanced financial support for pre-weatherization barrier mitigation and health and safety measures. Energy Solutions Whole-building engineered savings including expanded outreach, technical assistance, and financial incentives supporting whole-building EE upgrades through a streamlined suite of energy solutions. Also includes incentives for retro-commissioning and strategic energy management, in addition to OBR. Prescriptive & Custom Rebates and OBR for measures such as HVAC, lighting, motors & drives, refrigeration, water heaters, air compressors, food service equipment, and custom measures. Direct Install Provides free audit and easy-to-complete process with enhanced incentive coverage and OBR available for relatively simple EE projects for smaller C&I customers. Multifamily Targeted program directed at the specific challenges of this hard-to-reach customer segment. Offers a standalone program that leverages measures from both Residential and C&I programs with multi-family specific incentive levels and marketing, including OBR. Building Decarbonization Includes several approaches that incentivize switching from fossil fuel to electric measures in buildings. OBR will be available for pathways where the incentives do not cover the full cost of the project. Includes a study for a networked geoexchange project. Demand Response Several different demand response approaches for residential and commercial electric customers to reduce usage during times of high demand; OBR may be available for pathways where there are costs to customers. PSE&G’s Energy Efficiency Offerings: An Expanded Suite of Ten Residential, C&I, and Multifamily & Other programs Commercial & Industrial Residential Programs Multifamily & Other New Programs PSEG Investor Update March 2025
Page 27
27 $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 2019 2020 2021 2022 2023 2024 2025E Distribution Transmission PSE&G O&M Expense (1) (Millions) (1) Excludes certain regulatory balance account items. Effective Cost Controls at PSE&G Help to Mitigate Inflationary Impacts and Preserve Customer Affordability PSEG Investor Update March 2025 • Demonstrated ability to control O&M • Focus on cost control provides headroom for recovery of capital investment, as $1 of O&M offsets the impact of ~$10 of capital investment on customer bills • Implementation of AMI and ongoing productivity efforts are expected to continue to control O&M costs
Page 28
28 PSE&G Dual Jurisdiction Regulation Provides for a Mixture of Investment and Cost Recovery Mechanisms Transmission • Federal Regulatory Entity: Federal Energy Regulatory Commission (FERC) • Annual Formula Rate filing provides for contemporaneous recovery with forward-looking test year • Current Transmission ROE: 10.4% inclusive of 50 basis point RTO adder - Equity Ratio: ~55% - YE 2024 Transmission Rate Base: ~$13.3B (~39%) • State Regulatory Entity: NJ Board of Public Utilities • Timely recovery of investment programs: - Contemporaneous recovery of EE and Solar programs - Clause investment recovered via periodic filings for historic spending on Infrastructure Investment Programs (GSMP, Energy Strong, IAP) - Rate case recovery: Base spending, stipulated base • Current Distribution ROE: 9.6% for all programs, including Clean Energy - Equity Ratio: 55% - YE 2024 Distribution Rate Base: ~$20.6B (~61%) • Cost control and other factors mitigate other rate increases - O&M control limits customer bill impact from last rate case and keeps costs below peers - New pension and storm deferral mechanisms approved as part of distribution base rate case settlement • Regulatory Filings Update - BPU approved settlement that concluded PSE&G’s first electric and gas distribution base rate case in six years effective October 15, 2024 - BPU approved ~$2.9 billion CEF-EE II settlement, covering commitments from January 2025 to June 2027 to be spent over a six-year period - BPU approved the recovery of COVID-related deferrals over a five-year period effective June 2025 Distribution and Clean Energy Distribution Transmission Clean Energy PSEG Investor Update March 2025
Page 29
29 Key Takeaways: Best-in-Class Operations with Important System Investment Needs Driving Predictable Earnings Growth Operational Excellence: Delivering top-tier safety, reliability and customer service, while maintaining favorable affordability profile Financial Strength: Strong track record of growth continues • Distribution base rate case completed in 2024 driven by capital recovery, while preserving favorable affordability profile • Conservation Incentive Program decouples revenues, enabling broad EE adoption • Cost control supports customer affordability with the lowest gas bills and average electric bills vs regional peers • Investment recovery mechanisms help minimize regulatory lag Disciplined Investment: Programs driven by infrastructure modernization and decarbonization • $21B-$24B regulated capital investment program drives rate base growth of 6%-7.5% over the 2025-2029 period • 2024 year-end rate base grew by ~12% over 2023 • Investments aligned with NJ climate policies • Gas business capital investments driven by replacement of aged pipe prone to leaks • Technology investments will improve the customer experience and reliability while continuing to control O&M PSEG Investor Update March 2025
Page 30
PSEG Power & Other PSEG Investor Update March 2025
Page 31
31 PSEG Power & Other A stable, predictable business that generates significant free cash flow to support PSEG’s investment program PSEG Power & Other PSEG Nuclear Gas Supply Operations Other • Operates Salem 1 & 2 and Hope Creek • 50% owner of Peach Bottom 2 & 3 • Total 3,758 MW • Opportunities for growth Serves Basic Gas Supply Service (BGSS) contract with PSE&G, providing low-cost gas and multiple value streams PSEG Long Island, competitively bid regulated transmission investments, GSOE lease area, potential hydrogen investments, and Parent PSEG Investor Update March 2025
Page 32
32 PSEG Generation Fleet is 100% Carbon-Free Source: For PSEG: MJ Bradley/ERM “U.S. Benchmarking Air Emissions” and PSEG; For USA: EIA actuals 2005-2023, EIA forecasted 2024 from Annual Energy Outlook 2023. HEDD: New Jersey's High Electric Demand Day (HEDD) rule limits NOx emissions from turbines and boilers. 0 10 20 30 40 50 60 70 0 200 400 600 800 1,000 1,200 1,400 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 PSEG Generation Output (Million MWh) Direct CO2 Intensity (lbs/MWh) PSEG Generation Output U.S. Average CO2 Intensity PSEG CO2 Intensity Cleaner PSEG's generation fleet is 100% CO2 free Gas: Greater efficiency; retired NJ HEDD plants Coal: Lower capacity factors, and plant retirements Nuclear: Higher capacity factors, and capacity uprates Coal: Divested PA; retired NJ, CT coal U.S. Average CO2 Intensity PSEG Generation Output PSEG CO2 Intensity PSEG Investor Update March 2025 PSEG completed generation sale of PSEG Fossil
Page 33
3333 PSEG Decision to Retain Nuclear Units Influenced by Strategic, Financial and Operational Drivers Key Strategic Drivers • Unique asset class of existing, low-cost, carbon-free, 24x7 base load generation, providing reliable energy integral to meeting New Jersey’s clean energy targets • Significant free cash flow supports PSEG as it allocates capital for PSE&G’s growth • Three-unit nuclear site on Artificial Island (Hope Creek, Salem 1 and 2) • Early Site Permit at Hope Creek Key Financial Drivers • Predictable earnings from PTC through 2032 provides escalating support for energy prices • Prices above PTC threshold will provide upside opportunity • High value growth opportunities with low capital requirements include capacity uprates, refueling cycle extensions and operating license extensions • Continue to pursue growth opportunities incremental to PSEG’s stated 5% to 7% long-term non-GAAP Operating Earnings CAGR, including the potential to contract existing nuclear output under longer-term contracts at prices above the PTC threshold price Key Operational Drivers • Safety is always our highest priority • Demonstrated operational excellence and equipment reliability, providing improved predictability PSEG Investor Update March 2025
Page 34
3434* Both Peach Bottom units have received subsequent license renewals for an additional 20 years from the NRC. However, the NRC is revisiting the environmental review and the license expiration dates were reverted back to 2033 and 2034 pending this review. PSEG Nuclear — Key Fleet Data • 100% PSEG ownership • 1,172 MW owned capacity • Current license expires 2046 • 18-month operating cycle • Next refueling scheduled Fall 2025 Hope Creek BWR NJ Salem Unit 1 PWR NJ • 57% PSEG ownership • 655.5 MW owned capacity • Current license expires 2036 • 18-month operating cycle • Next refueling scheduled Spring 2025 Salem Unit 2 PWR NJ • 57% PSEG ownership • 655.5 MW owned capacity • Current license expires 2040 • 18-month operating cycle • Next refueling scheduled Spring 2026 Peach Bottom Unit 2 BWR PA • 50% PSEG ownership • 637.5 MW owned capacity • Current license expires 2053* • 24-month operating cycle • Next refueling scheduled Fall 2026 Peach Bottom Unit 3 BWR PA • 50% PSEG ownership • 637.5 MW owned capacity • Current license expires 2054* • 24-month operating cycle • Next refueling scheduled Fall 2025 Fleet Average Capacity Factor of ~90% for Full Year 2024 PSEG Investor Update March 2025
Page 35
3535 Nuclear is Critical to the Energy Transition Nuclear is a unique asset class providing reliable 24x7, carbon-free energy and price stabilization PSEG Nuclear provides ~40% of New Jersey’s energy and ~85% of NJ’s clean energy • NJ’s energy goals can only be met through preserving our nuclear assets through an extended license life • Integrated Energy Plan supporting NJ’s EMP concluded that retaining nuclear is the least-cost scenario for achieving NJ’s goals PSEG Nuclear is a leading employer in Salem County and Southern NJ • Supports an annual payroll of ~$190 million • ~4,500 in-state direct and secondary jobs • ~1,600 full-time employees — 70% of employees live in South Jersey • ~1,000 additional contractors twice a year to support refueling outages and maintenance NJ Electric Generation by Fuel Source 2023* PSEG Investor Update March 2025 Nuclear 43% Natural Gas 47% Renewables 9% Other 1% * Source: Form EIA-923 (Electricity Data Browser as of February 28, 2025). Note: Natural gas percentage includes some NJ-based generation output that is exported to NYISO. NJ Electric Generation By Fuel Source 2024*
Page 36
3636 PSEG Nuclear has Compelling Growth Opportunities: Salem Capacity Uprate • ~112 MW PSEG-share (includes ~7% thermal power increase and complementary investments that improve secondary side generation efficiency) • Lowers $/MWh generating cost (same O&M, more MWh) • In service in 2027-2029 • Includes multiple investments in Salem Units 1 and 2 that will increase generation capacity and reliability and support long-term operation of the units, including through a potential subsequent license renewal (80-year life) o Moisture Separator Reheaters (2027/2028) o Power Uprate – thermal increase (2029) o LP Turbines (2029) • Compelling value: o Incremental PTC benefit — Expected to qualify for the incremental clean energy production credit, providing 10 years of ~$29/MWh* incremental value to market Simplified Plant Diagram *Amounts reflect 2024 dollars, subject to IRS inflation adjustment factor. PSEG Investor Update March 2025 1 42 3 5 1. Nuclear Reactor 2. High Pressure Turbine 3. Moisture Separator Reheaters 4. Low Pressure Turbines 5. Electrical Generator
Page 37
3737 Additional PSEG Nuclear Growth Opportunities Transition from 18-month to 24-month Refueling Cycles • An extended fuel cycle eliminates refueling outages over the life of the plant, reducing O&M by eliminating one refueling outage every 6 years (~$50M O&M) and increasing generation ~25 days every six years (~$30M) to end of extended life (avoids 6 refueling outages) • Hope Creek: Transitioning from 18-month to 24-month cycles starting with Fall 2025 outage • Salem: Monitoring NRC approval of higher enrichment and burnup fuel that would enable transitioning to 24-month cycles, potentially 2032 implementation at Salem • Transitioning all 3 units to 24-month cycles could provide an opportunity to further levelize the annual outage costs and generation output of our Nuclear units License Extensions — Salem and Hope Creek • Notified NRC of intention to seek 20-year license renewals for Salem Unit 1 (to 2056), Salem Unit 2 (to 2060), and Hope Creek (to 2066) • ~$75M total PSEG-share investment to obtain NRC license changes • Targeting license extension request submittal to the NRC in 2027 and NRC approval anticipated 2029 • Early Site Permit at Hope Creek PSEG Investor Update March 2025
Page 38
3838 Hydrogen Opportunities Federal Government Created Programs to Incentivize the Development of a Hydrogen Economy to Drive Decarbonization Efforts Toward Some of the Hardest Sectors to Abate • Infrastructure Investment and Jobs Act, 2021 — Up to $7 billion was awarded in October 2023 by the DOE to seven hydrogen hubs across the country, including the MACH2 Hub of which PSEG is an affiliate • Inflation Reduction Act, 2022 — Creation of hydrogen PTC and ITC, dependent upon carbon intensity of hydrogen production process PSEG is Actively Evaluating Hydrogen-Related Opportunities • Evaluating multiple roles - Owner and operator of hydrogen production facilities powered by carbon-free, nuclear power - Seller of RECs and/or nuclear power to third party hydrogen producers - Delivery of hydrogen blended into selected segments of PSE&G’s gas distribution system 38 PSEG Investor Update March 2025
Page 39
3939 PSEG Power & Other — Other Businesses Gas Supply Operations — the Next Largest Component of PSEG Power & Other • Broad portfolio of pipeline and storage contracts providing access to low-cost gas and optionality • Serves Basic Gas Supply Service to PSE&G customers • Multiple value streams from gas commodity and pipeline capacity sales to third parties and margins on gas sales to certain customer classes • Lowest-cost gas supplier in New Jersey with 75% of off-system sales margins credited to customers Other Components PSEG Long Island — Two Categories of Services • Operating Services Agreement to manage T&D utility (renewal beyond 2025 pending) • Fuel & Energy Management Agreement (expires at the end of 2025 and will not be renewed) GSOE Lease Area • Evaluating options to monetize our acreage 39 Competitively Bid, FERC Regulated Transmission Projects • In December 2023, PJM awarded PSEG an ~$424 million project as part of its 2022 Window 3 competitive solicitation • In April 2024, PSE&G submitted bids to the BPU for its Pre-Build Infrastructure (PBI) project • Second State Agreement Approach (SAA) postponed beyond July 2024 PSEG Investor Update March 2025
Page 40
40 PSEG Power & Other Other Financial Considerations • For 2025, total nuclear generation is forecasted to be 30-32 TWh of reliable, carbon-free energy • Nuclear fuel commitments cover ~100% of estimated uranium, enrichment and fabrication requirements through 2027 and a significant portion through 2028 • Realized energy price most historically aligned with the PECO hub • PSEG’s 100%-owned HC unit to transition from 18-month to 24-month fuel cycles starting in 2025 • Capacity uprate potential at Salem of nearly 200 MW total (~112 MW PSEG share) • Notified NRC of intention to file for extension of operating licenses for Salem units 1&2 and Hope Creek by 20 years to 2056, 2060 and 2066, respectively • Optionality around data center co-location and PPAs at premium pricing to PTC • Redundancy of three-unit site • Latency close to population/fiber • Early Site Permit options for technology-neutral nuclear capacity build Note: Generation indicates period net generation; *Average Prices and Cleared Capacity reflect base and incremental auctions. **PJM’s new conversion of ICAP (installed capacity) to UCAP (unforced capacity, which is what is bid), has resulted in less UCAP per MW of ICAP. PSEG Nuclear sold the full U$250CAP value of the units. + Illustration based on the adjustment mechanism found in subsection (c)(1) of section §45U of the IRC. PTC +2% means the PTC value as calculated assuming a 2% increase in the GDP Price Deflator (the underlying inflation metric) each year. PJM Capacity Auction Results Delivery Period PSEG’s Average Prices PSEG’s Cleared Capacity 6/24 – 5/25 $61/MW-Day 3,700 MW* 6/25 – 5/26 $270/MW-Day 3,500 MW** Illustrative Gross Margin Change Above PTC Output $10/MWh $25/MWh $50/MWh 10 TWh $100M $250M $500M 20 TWh $200M $500M $1,000M 30 TWh $300M $750M $1,500M Nuclear PTC Inflation Adjustment Illustration+ Year PTC +2% PTC +3% PTC +4% 2025 $44.75 $44.75 $44.75 2026 $44.75 $45.75 $45.75 2027 $45.75 $48.88 $49.88 2028 $45.75 $49.88 $50.88 PJM capacity auction for June 2026 – May 2027 scheduled for July 2025 PSEG Investor Update March 2025
Page 41
41 Key Takeaways: Increasing Predictability • Operational Excellence: - Solid nuclear operations with exemplary ratings on all units, gas supply operations benefiting PSE&G customers, and PSEG Long Island • Financial Strength: - Nuclear long-term price stability through PTC threshold into the next decade - Nuclear operations generate significant free cash flow to support PSEG’s growth objectives - Other businesses, while smaller components, provide stable value • Disciplined Investment: - The PTC provides long-term price stability, driving our strategic decision to retain our nuclear assets - Enables investment opportunities in power uprates, fuel cycle optimization, license extensions and hydrogen Transformed business with the sale of fossil generating assets and exit from offshore wind generation, and decision to retain PSEG’s nuclear assets following IRA PSEG Investor Update March 2025
Page 42
Financial Review & Outlook PSEG Investor Update March 2025
Page 43
4343 PSEG Full Year 2025 Guidance 2025 midpoint represents ~9% increase over 2024 results Key Drivers for 2025 • Initiating PSEG 2025 non-GAAP Operating Earnings guidance of $3.94 - $4.06 per share • PSEG 2025E outlook driven by: + New distribution base rates effective for the full year + Clause-based investment recoveries for infrastructure modernization and EE + Higher PSE&G rate base, increased by ~12% at YE 2024 over YE 2023 + Higher PTC threshold price estimated at $44.75/MWh -- ZEC II award payments end May 2025 -- Hope Creek refueling scheduled for fall 2025 includes fuel cycle extension work -- Higher costs, including interest and depreciation Ongoing Execution of PSEG Strategic Plan • Regulated capital spending plan of ~$3.8 billion for 2025 to continue investments in infrastructure modernization, energy efficiency, electrification initiatives and load growth • Increased indicative 2025 annual common dividend by 5% to $2.52 per share • Management has delivered results that have met or exceeded guidance for 20 consecutive years $3.68 $3.94 - $4.06 2024 Non-GAAP Operating Earnings 2025E Non-GAAP Operating Earnings Guidance See Slide A for Items excluded from Net Income to reconcile to Operating Earnings (non-GAAP) for PSEG. All future decisions and declarations regarding dividends on the common stock are subject to approval by the Board of Directors. PSEG Investor Update March 2025
Page 44
44 Non-GAAP Operating Earnings Strong Business Mix and Predictable Growth • PSEG’s long-term non-GAAP earnings growth outlook of 5%-7% is based on the midpoint of 2025 guidance range (a 9% higher baseline) and assumes the PTC threshold price • ~90% of PSEG’s projected non-GAAP Operating Earnings over the 2025-2029 period are from PSE&G • Total PSEG capital program of $22.5B - $26B for 2025-2029 with >90% from regulated activities • $21B - $24B regulated capital investment program for 2025-2029, supports PSE&G’s Rate Base CAGR of 6%-7.5% over the same period • Solid balance sheet supports execution of robust 5-year capital plan without the need to issue equity or sell assets • Nuclear PTC threshold price adjusted annually for inflation • Growth beyond forecasted CAGR range could be achieved through opportunities to contract existing nuclear output under longer-term contracts at prices above the nuclear PTC threshold price 2025E 2029E PSEG’s Long-term Growth Outlook of 5%-7% Driven by PSE&G’s Regulated Earnings PSEG Investor Update March 2025
Page 45
45 While capital spending has increased, no new equity needed through 2029 to fund business plan S o u r c e s U s e s S o u r c e s U s e s S o u r c e s U s e s PSE&G Cash from Ops (1) Incremental PSE&G Debt PSE&G Dividend to Parent PSE&G Capital Expenditures Power Cash from Ops and Incremental Debt Parent Financing PSEG Shareholder Dividend Power and Other Investments Dividend from PSE&G PSE&G PSEG Power & Other PSEG Consolidated Funding PSE&G Growth • Internally generated PSE&G cash flow • Incremental PSE&G debt • PSEG Power Cash from Operations helps support PSE&G to retain equity to maintain capital structure 2025E – 2029E PSEG Sources and Uses of Cash (1) PSE&G Cash from Operations is adjusted for cost of removal and Energy Efficiency spending, which are included in capital expenditures. PSEG Investor Update March 2025
Page 46
46 (1) FFO/Debt is an internal estimate of a non-GAAP measure. 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. Debt consists of long-term debt, short-term debt and other imputed debt primarily related to an unfunded pension obligation. 10% 15% 20% Projected Average ~Mid-Teens $0.0 $3.0 Minimum Threshold ~$2.5B of investment capacity if debt capacity funds regulated growth at target capital structure Targeting Solid ‘BBB’ credit ratings for PSEG Senior Unsecured Debt $ Billions PSEG FFO/Debt (1) Projected Average Debt Capacity (2025E-2029E) • We retain financial flexibility with debt capacity to capitalize on incremental growth opportunities • Additional cash from Nuclear revenue opportunities could increase debt capacity Strong Business Platform Supports Investment Grade Ratings PSEG Investor Update March 2025
Page 47
47 * Payout Ratios reflect the dividend rate divided by non-GAAP Operating Earnings. See Slide B for Items excluded from Net Income/(Loss) to reconcile to Operating Earnings (non-GAAP) for PSEG. ** Indicative annual 2025 common dividend rate per share. Note: All future decisions and declarations regarding dividends on the common stock are subject to approval by the Board of Directors. PSEG’s 2025 Indicative Annual Dividend Increase of 5% Supported by Predictable Earnings $1.64 $1.72 $1.80 $1.88 $1.96 $2.04 $2.16 $2.28 $2.40 $2.52** 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025E Annual PSEG Dividend Per Share 57% 59% 58% 57% 57% 56% 62% 66% 65% Payout Ratio* PSEG has a 118-year history of paying dividends to shareholders PSEG Investor Update March 2025
Page 48
48 Key Takeaways: A Strong Business Mix and Predictable Growth • 5%-7% long-term earnings growth rate for 2025-2029 driven by PSE&G rate base growth and PTC threshold for Nuclear • Best-in-class, customer-centric regulated Utility with robust 5-year capital expenditures of $21B–$24B - Settled major regulatory filings in 2024, including PSE&G’s base distribution rate case, CEF-EE II filing, CEF-EE I extension and the recovery of COVID-related deferrals - Focused on infrastructure modernization and decarbonization of NJ economy and meeting growing customer demand - Investment opportunities aligned with New Jersey and federal energy transition policies - Favorable “share of wallet” for combined residential bills - Constructive NJ regulatory environment • Exited offshore wind generation * All future decisions and declarations regarding dividends on the common stock are subject to approval by the Board of Directors. • Nuclear fleet with PTC stabilized, predictable cash flows and multiple growth paths with modest investment - Predictability – Long-term growth outlook through 2029 based on PTC threshold, with upside for potential market price increases - Opportunities – Increase capacity via uprates, extend fuel cycles, seek license extensions, optionality around potential data center power sales and potential hydrogen opportunities • Effective cost control to mitigate macro-inflationary concerns, reduce volatility and maintain customer affordability • 2025 annualized indicative common dividend* of $2.52 per share represents a 5% increase over 2024 • Recognized Sustainability leader with top-tier scores and commitment to ethical business practices • Strong management track record of delivering on commitments, including meeting or exceeding earnings guidance 20 years in a row PSEG Investor Update March 2025
Page 49
Appendix PSEG Investor Update March 2025
Page 50
50 Regulatory Objectives Achieved in 2024 PSE&G concluded first electric and gas distribution base rate case in six years and reached ~$2.9 billion CEF-EE II settlement Distribution Rate Case • Balanced settlement provided recovery of prudent investments while maintaining favorable affordability profile • New distribution base rates took effect October 15, 2024, and represent an increase of ~1% per annum since PSE&G’s previous rate case in 2018 • ROE of 9.6% was unchanged; equity ratio increased to 55% of regulated capital structure • Implemented new deferral mechanisms for pension and storm expense, increasing the predictability of PSE&G’s future financial results and stabilizing rates for customers CEF-EE II Program • Approved for ~$2.9B, including investments of $1.9B and on-bill repayment financing of $1B (both in rate base) • Investments to be made over a 6-year period for projects committed between January 2025 to June 2027 • New program cycle comprised of 10 EE programs designed to help residential and business customers reduce their energy usage, bills and carbon footprint while supporting economic growth in NJ • Investments expected to save customers $4B in utility bills and avoid 10 million metric tons of carbon emissions, helping NJ to achieve its clean energy targets PSEG Investor Update March 2025
Page 51
51(1) Excludes Nuclear ARO, Bethlehem Energy Center goodwill write-off, write-offs related to Strategic Alternatives and certain regulatory balance count and pass-through items. Excludes PSEG Fossil and PSEG Power Ventures as of 2022. PSEG has Demonstrated Success in Controlling O&M, Keeping CAGR ~(1%) $0 $500 $1,000 $1,500 $2,000 $2,500 2019 2020 2021 2022 2023 2024 2025E PSEG Power Distribution Transmission PSEG PSEG O&M Expense (1) (Millions) PSEG Investor Update March 2025
Page 52
5252 All data is as of 12/31/2024 unless otherwise noted. (1) 364-Day Term Loan is included in Short-Term Debt as Commercial Paper & Loans. (2) PSEG Power 364-Day term loan and PSEG Power long-term debt are at a variable rate. As of 12/31/2024, PSEG had entered into f loating-to-fixed interest rate swaps totaling $1.25B to reduce the volatility in interest expense for our variable rate debt on the $1.25B term loan at PSEG Power. In December 2024, PSEG Power amended its existing $1.25 bil lion variable rate 3-year term loan agreement to extend from March 2025 through June 2025. Note: Total long-term debt outstanding amounts may not add to PSEG Consolidated total long-term debt outstanding due to rounding. Amounts on slide are rounded up to two decimal places. PSEG PSEG Senior Unsecured Credit Ratings Moody’s = Baa2 / Outlook = Stable S&P = BBB / Outlook = Stable PSEG Long-term Debt Outstanding $4.86B PSEG Consolidated Debt to Capitalization 58% Public Service Electric & Gas PSE&G Senior Secured Credit Ratings Moody’s = A1 / Outlook = Stable S&P = A / Outlook = Stable PSE&G Long-term Debt Outstanding $15.00B • PSEG had approximately $2.6B of total available liquidity, including $125M of cash and cash equivalents, at December 31, 2024 • As of December 31, 2024, PSEG’s variable rate debt was ~7% of total debt • PSEG Power had net cash collateral postings of $244M at December 31, 2024 PSEG Liquidity and Net Cash Collateral Postings0 500 1,000 1,500 2,000 2,500 2025 2026 2027 2028 2029 Principal Maturing ($ Millions) PSE&G PSEG Power PSEG PSEG Maturity Profile 2025 - 2029 PSEG Maintains a Solid Financial Position PSEG Power Issuer Credit Ratings Moody’s = Baa2 / Outlook = Stable S&P = BBB / Outlook = Stable PSEG Power 364-Day Term Loan Outstanding (1,2) $0.40B PSEG Power Long-term Debt Outstanding (2) $1.25B PSEG Liquidity PSEG Investor Update March 2025
Page 53
5353 $5.13 $3.48 $3.68 $3.54$0.03 $0.17 $0.00 $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 $3.50 $4.00 $4.50 $ / share Gross Margin and PTC 0.44 O&M (0.12) Depreciation & Interest (0.10) Non-Operating Pension/OPEB (0.01) Taxes & Other (0.04) Transmission 0.02 Renewables & Energy Efficiency 0.03 Distribution: Margin 0.30 O&M (0.12) Depreciation & Interest (0.14) Non-Operating Pension/OPEB (0.05) Taxes & Other (0.01) FY 2023 Net Income FY 2023 Operating Earnings (non-GAAP) FY 2024 Net Income FY 2024 Operating Earnings (non-GAAP) PSE&G PSEG Power & Other ~ ~ $5.25 See Slides A and B for Items excluded from Net Income (Loss) to reconcile to Operating Earnings (non-GAAP) for PSEG. Note: In 2024, PSEG recorded the benefit of the estimated PTCs within Income Tax Expense in its Consolidated Statements of Operations in accordance with Accounting Standards Codification Topic 740, Income Taxes. Results may not add due to rounding. $5.00 PSEG EPS Reconciliation – FY 2024 versus FY 2023 PSEG Investor Update March 2025
Page 54
54 PSEG Provides a Compelling Value for Our Investors Strong business mix and predictable growth • Regulated investment opportunities in decarbonization of NJ economy and electrification of transportation and buildings • Broader opportunities in competitively bid regulated transmission • Unique asset class of carbon-free baseload nuclear fleet with long-term price stability through PTC threshold, enabling investment opportunities in power uprates, fuel cycle optimization, license extensions and hydrogen • De-risked long-term growth outlook from visible, long-term investments • Nuclear operations provide added flexibility to fund PSEG’s 5-year capital spending plan without the need to issue new equity or sell assets 12.5 15.0 17.5 20.0 22.5 Dec-22 Mar-23 Jun-23 Sep-23 Dec-23 Mar-24 Jun-24 Sep-24 Dec-24 PSEG Peer Avg Top Quartile Avg P/E Rolling average 2nd and 3rd year expectations Investment Proposition Return Opportunity Non-GAAP Operating Earnings Growth Rate Outlook 2025E-2029E 5% – 7% Dividend Yield 3.1%* Total Potential Shareholder Return 8.1% – 10.1% * Dividend yield as of 2/28/2025. PSEG Investor Update March 2025
Page 55
5555 Glossary of Terms PSEG Investor Relations 80 Park Plaza Newark NJ 07102 PSEG-IR-GeneralInquiry@pseg.com Link to PSEG Investor Relations Website Link to PSEG ESG Webpages A&G Administrative & General AFUDC Allowance for Funds Used During Construction AMI Automated Metering Infrastructure ARO Asset Retirement Obligation BGS Basic Generation Service BGSS Basic Gas Supply Service BPU New Jersey Board of Public Utilities BWR Boiling Water Reactor CAGR Compound Annual Growth Rate C&I Commercial and Industrial CEF Clean Energy Future CI/US Cast Iron and Unprotected Steel Main CWIP Construction Work in Progress DC Direct Current DER Distributed Energy Resource DOE Department of Energy E Estimate EC Energy Cloud EE Energy Efficiency EIA EMP EPA ESG Environmental, Social and Governance EV Electric Vehicle FCF Free Cash Flow Energy Information Administration Energy Master Plan Environmental Protection Agency FERC Federal Energy Regulatory Commission FFO Funds From Operations GAAP Generally Accepted Accounting Principles GC General Counsel GDP Gross Domestic Product GSMP Gas System Modernization Program GSOE Garden State Offshore Energy HC Hope Creek HEDD High Electric Demand Days HVAC Heating, Ventilation, Air Conditioning IAP Infrastructure Advancement Program ICAP Installed Capacity IEEE Institute of Electrical and Electronics Engineers IRA Inflation Reduction Act ITC Investment Tax Credit LDC Local Distribution Company LIHEAP Low Income Home Energy Assistance Program LT Long-Term NRC Nuclear Regulatory Commission O&M Operations and Maintenance OPEB Other Post-Employment Benefits OSHA Occupational Safety and Health Administration OSW Offshore Wind P/E Price to Earnings Ratio PB Peach Bottom PECO PECO Energy Company PHMSA Pipeline and Hazardous Materials Safety Administration PJM Pennsylvania Jersey Maryland PPA Power Purchase Agreement PTC Production Tax Credit PWR Pressurized Water Reactor REC Renewable Energy Credit ROE Return on Equity RTO Regional Transmission Organization S Salem SAIDI System Average Interruption Duration Index T&D Transmission and Distribution UCAP Unforced Capacity USF Universal Service Fund YE Year End PSEG Investor Update March 2025
Page 56
5656 Public Service Enterprise Group Incorporated - Consolidated Operating Earnings (non-GAAP) Reconciliation A (a) Includes the financial impact from positions with forward delivery months. (b) Income tax effect calculated at the statutory rate except for qualified NDT related activity, which records an additional 20% trust tax on income (loss) from qualified NDT Funds, and lease related activity. Please see Slide 3 for an explanation of PSEG’s use of Operating Earnings as a non-GAAP financial measure and how it differs from Net Income. Reconciliation of Non-GAAP Operating Earnings 2024 2023 2024 2023 Net Income 286$ 546$ 1,772$ 2,563$ (Gain) Loss on Nuclear Decommissioning Trust (NDT) Fund Related Activity, pre-tax 62 (126) (137) (184) (Gain) Loss on Mark-to-Market (MTM), pre-tax(a) 134 (291) 210 (1,334) Pension Settlement Charges, pre-tax - 6 - 338 Lease Related Activity, pre-tax - 7 (4) 7 Exit Incentive Program (EIP), pre-tax - 4 - 29 Income Taxes related to Operating Earnings (non-GAAP) reconciling items(b) (61) 125 (2) 323 Operating Earnings (non-GAAP) 421$ 271$ 1,839$ 1,742$ PSEG Fully Diluted Average Shares Outstanding (in millions) 500 500 500 500 Net Income 0.57$ 1.10$ 3.54$ 5.13$ (Gain) Loss on NDT Fund Related Activity, pre-tax 0.12 (0.26) (0.27) (0.37) (Gain) Loss on MTM, pre-tax(a) 0.27 (0.58) 0.42 (2.67) Pension Settlement Charges, pre-tax - 0.02 - 0.68 Lease Related Activity, pre-tax - 0.01 (0.01) 0.01 EIP, pre-tax - 0.01 - 0.06 Income Taxes related to Operating Earnings (non-GAAP) reconciling items(b) (0.12) 0.24 - 0.64 Operating Earnings (non-GAAP) 0.84$ 0.54$ 3.68$ 3.48$ Three Months Ended Reconciling Items ($ millions, Unaudited) ($ Per Share Impact - Diluted, Unaudited) December 31, Year Ended December 31, PSEG Investor Update March 2025
Page 57
5757 Public Service Enterprise Group Incorporated - Consolidated Operating Earnings (non-GAAP) Reconciliation B Reconciling Items Year Ended December 31, 2024 2023 2022 2021 2020 2019 2018 2017 2016 Net Income (Loss) ($ millions, Unaudited) $1,772 $2,563 $1,031 ($648) $1,905 $1,693 $1,438 $1,574 $887 (Gain) Loss on Nuclear Decommissioning Trust (NDT) Fund Related Activity, pre-tax (a) (137) (184) 270 (178) (231) (255) 144 (133) (5) (Gain) Loss on Mark-to-Market (MTM), pre -tax (b) 210 (1,334) 635 620 81 (285) 117 167 168 Pension Settlement Charges, pre-tax - 338 - - - - - - - Plant Retirements, Dispositions and Impairments, pre -tax (c) - - 31 2,940 (122) 402 (51) 975 669 Oil Lower of Cost or Market adjustment, pre -tax - - - - 2 - - - - Goodwill Impairment, pre-tax - - - - - 16 - - - Lease Related Activity, pre-tax (4) 7 78 10 - 58 8 77 147 Exit Incentive Program (EIP), pre-tax - 29 - - - - - - - Income Taxes related to Operating Earnings (non-GAAP) reconciling items, excluding Tax Reform (d) (2) 323 (306) (891) 106 37 (74) (427) (391) Tax Reform - - - - - - - (745) - Operating Earnings (non-GAAP) $1,839 $1,742 $1,739 $1,853 $1,741 $1,666 $1,582 $1,488 $1,475 PSEG Fully Diluted Average Shares Outstanding (in millions) (e) 500 500 501 504 507 507 507 507 508 Net Income (Loss) ($ Per Share Impact – Diluted, Unaudited) $3.54 $5.13 $2.06 ($1.29) $3.76 $3.33 $2.83 $3.10 $1.75 (Gain) Loss on NDT Fund Related Activity, pre-tax (a) (0.27) (0.37) 0.54 (0.35) (0.46) (0.50) 0.28 (0.26) (0.01) (Gain) Loss on MTM, pre-tax (b) 0.42 (2.67) 1.27 1.23 0.16 (0.56) 0.23 0.33 0.33 Pension Settlement Charges, pre-tax - 0.68 - - - - - - - Plant Retirements, Dispositions and Impairments, pre -tax (c) - - 0.06 5.83 (0.24) 0.79 (0.10) 1.92 1.32 Goodwill Impairment, pre-tax - - - - - 0.03 - - - Lease Related Activity, pre-tax (0.01) 0.01 0.15 0.02 - 0.11 0.02 0.15 0.29 EIP, pre-tax - 0.06 - - - - - - - Income Taxes related to Operating Earnings (non-GAAP) reconciling items, excluding Tax Reform (d) - 0.64 (0.61) (1.77) 0.21 0.08 (0.14) (0.84) (0.78) Tax Reform - - - - - - - (1.47) - Share Differential (e) - - - (0.02) - - - - - Operating Earnings (non-GAAP) $3.68 $3.48 $3.47 $3.65 $3.43 $3.28 $3.12 $2.93 $2.90 (a) Effective January 1, 2018, unrealized gains (losses) on equity securities are recorded in Net Income (Loss) instead of Other Comprehensive Income (Loss). (b) Includes the financial impact from positions with forward delivery months. (c) 2022 includes the results for fossil generation sold in February 2022. 2021 amounts include a pre-tax loss of $298 million for the make-whole premium paid upon the early redemption of PSEG Power's debt and other non-cash debt extinguishment costs. (d) Income tax effect calculated at 28.11% statutory rate for 2018 through 2024 and 40.85% statutory rate for prior years, except for qualified NDT related activity, which records an additional 20% trust tax on income (loss) from qualified NDT Funds, the additional investment tax credit recapture related to the sale of PSEG Solar Source in 2021 and lease related activity. (e) Approximately three million potentially dilutive shares were excluded from fully diluted average shares outstanding used to calculate the diluted GAAP loss per share for the year ended December 31, 2021 as their impact was antidilutive to GAAP results. For non-GAAP per share calculations, we used fully diluted average shares outstanding of 507 million, including the three million potentially dilutive shares as they were dilutive to non-GAAP results. As a result of the use of different denominators for non-GAAP Operating Earnings and GAAP Net Loss, a reconciling line item, “Share Differential,” has been added to the 2021 results to reconcile the two Earnings/(Loss) per share calculations. Please see Slide 3 for an explanation of PSEG’s use of Operating Earnings as a non-GAAP financial measure and how it differs from Net Income (Loss). Reconciliation of Non-GAAP Operating Earnings PSEG Investor Update March 2025