Public Service Enterprise Group Incorporated · NYSE:PEG
Public Service Enterprise — Investor Day (September 2021)
79 slides from Public Service Enterprise's investor day presentation, Sep 27, 2021
Slide 1: 2021 Investor Conference
Public Service Enterprise Group 2021 Investor Conference A sustainable, predictable growth platform NYSE TICKER: PEG September 27, 2021
Slide 2: Forward-Looking Statements
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 “forwa
Slide 3: GAAP Disclaimer
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
Slide 4: 2021 PSEG Investor Conference Agenda
2021 PSEG Investor Conference Agenda WELCOME AND INTRODUCTIONS PSEG Overview Ralph Izzo PSEG Chairman, President & Chief Executive Officer PSEG Operations, Zero-Carbon, Infrastructure & Other Ralph LaRossa PSEG Chief Operating Officer Public Service Electric & Gas Kim Hanemann PSE&G President & Chie
Slide 5: PSEG's Powering Progress Vision
PSEG’s Powering Progress Vision: A future in which people use less energy, that energy is cleaner and delivered more reliably than ever. 5
Slide 6: PSEG: A sustainable, predictable growth platform
PSEG: A sustainable, predictable growth platform PSEG: Powering Progress • PSEG is predominantly through Regulated regulated with contracted, Growth zero-carbon infrastructure investments and a strong set of growth opportunities • PSEG is an ESG leader in tackling climate change, DEI and governance
Slide 7: Predominantly regulated with contracted, zero-carbon infrastructure investments
PSEG: Predominantly regulated with contracted, zero-carbon infrastructure investments and a strong set of growth opportunities ● PSEG: 90% regulated business mix from stable, predictable operations of PSE&G, 10% Zero-Carbon Generation, Infrastructure and Other ● PSE&G: Robust capital program aligned
Slide 8: Improved business mix drives sustainable, predictable earnings platform
PSEG’s improved business mix drives a sustainable, predictable earnings platform built by steady capital allocation to PSE&G and the sale of our non-nuclear generation PSEG non-GAAP Operating Earnings* per Share (EPS) Contribution by Subsidiary $4.00 $3.50 - $3.65 $3.43 $3.30 - $3.60 $3.28 $3.12 $3.
Slide 9: PSE&G rate base and net income growth
PSE&G: Over the last decade, capital investments have more than doubled rate base and net income PSE&G Rate Base and Net Income 30,000 1,600 Net Income 1,400 25,000 Net Income 1,200 ($ millions) Rate Base ($ millions) 20,000 1,000 15,000 800 600 10,000 400 5,000 200 - - 2013 2014 2015 2016 2017 2018
Slide 10: PSEG has reduced volatility and delivered strong results
PSEG has reduced volatility, provided more certainty across our business and delivered strong results Announced exploration of Strategic Alternatives for non-nuclear fleet 2020 PSE&G’s $1B Clean Energy Future - Energy Efficiency program approved with CIP Delivered on commitments to employees,
Slide 11: Long track record of meeting or exceeding earnings guidance
PSEG has delivered strong results with a long track record of meeting or exceeding earnings guidance $3.60 $3.40 $3.20 $3.00 $/share $2.80 $2.60 $2.40 $2.20 $2.00 2013 2014 2015 2016 2017 2018 2019 2020 Original Non-GAAP Operating EPS Guidance Range Non-GAAP Operating EPS* *See slides A, B and C for
Slide 12: PSEG projects 5%-7% EPS CAGR to 2025
PSEG projects 5%-7% EPS CAGR to 2025, driven by PSE&G’s investment program PSEG non-GAAP Operating Earnings per Share +7% $4.25 $4.00 +5% $3.75 $/share $3.30-$3.60 $3.50 $3.25 $3.00 2022E 2025E EPS growth rate and improved business mix support raising the 2022 indicative annual dividend increase fro
Slide 13: Consistent and sustainable dividend growth
Opportunity for consistent and sustainable dividend growth; dividend raised every year for a decade, now with a higher growth rate PSEG Annual Dividend Per Share $3.20 PSE&G EPS $3.00 $2.80 $2.60 $2.40 ($/Share) $2.20 $2.16* $2.04* $1.96 $2.00 $1.88 $1.64 $1.80 $1.80 $1.72 $1.56 $1.60 $1.44 $1.48 $1
Slide 14: Investments align with NJ's clean energy goals
PSEG’s investments align with NJ’s clean energy goals, strengthening system reliability and resilience to meet customers’ increasing expectations PSEG 2021-2025E High-end Capex ~$17B Future PSEG Other Zero-Carbon, Nuclear Reliability Infrastructure ~50% and Other • Energy Efficiency • AMI addresses
Slide 15: Outpaced industry in reducing carbon emissions intensity
PSEG has outpaced the industry in reducing carbon emissions intensity, and is getting recognized for ESG performance PSEG Generation Carbon Emission PSEG’s ESG Vital Signs: Relative Scores Intensity vs. U.S. Average (2005 – 2020) 1,400 PEERS MSCI AA 1,200 PSEG in top 20% of all MSCI rated companies
Slide 16: Accelerated climate vision for net-zero by 2030
PSEG has accelerated its climate vision for net-zero emissions by 20 years to 2030 Original ~22% ~60% New PSEG PSEG Original Methane Methane Net-Zero Power PSEG Power Reduction Reduction GHG Vision 80% GHG Net-Zero Target Target* Reduction Vision Target 2023 2030 2030 2046 2050 PSEG’s Three-Pronged
Slide 17: PSEG is transitioning to net-zero operations
PSEG is transitioning to net-zero operations Reduce Scope 1 Carbon-Free Generation: PSEG will transition the generation portfolio to 100% GHG-free Maintain support for nuclear generation Increase investments in renewable generation that will further reduce the carbon footprint of company operati
Slide 18: Valuation has improved relative to peers
PSEG’s valuation has improved relative to peers since the Strategic Alternatives announcement FY2 Price/Earnings Multiple* 22x 20x 18x 16x 14x 12x 10x 6/30/2020 9/24/2021 PEG XLU Premium Peers yet remains at a significant discount to premium peers with similar business mix, credit ratings, growth ra
Slide 19: What you will hear from PSEG's leadership team
PSEG: A sustainable, predictable growth platform • PSEG: 90% regulated business mix from stable, predictable operations of PSE&G What you will hear – Ralph LaRossa from PSEG’s • PSE&G: Robust capital program aligned with leadership team state clean energy goals, increased by $1B to $14B-$16B through
Slide 20: PSEG: 90% regulated business mix
PSEG: A sustainable, predictable growth platform PSEG: 90% regulated • Future PSEG business mix from stable, predictable • Stability of PSEG operations of PSE&G • Reliable, Solid Operations Ralph LaRossa Chief Operating Officer – PSEG Powering Progress: A future in which people use less energy, that
Slide 21: Future PSEG
Future PSEG PSEG is predominantly a regulated utility, with other businesses that are largely contracted in the near-term, providing a high degree of predictability PSE&G Electric Transmission Future PSEG Zero-Carbon, Electric Distribution Infrastructure and Other Gas Distribution Nuclear Clean Ener
Slide 22: Stability of PSEG
Stability of PSEG STABLE BUSINESS MIX ● PSE&G represents ~90% of PSEG earnings through 2025 ● PSE&G earnings cover >100% of PSEG dividend ● PSE&G represents ~85% of PSEG total assets post Fossil sale ● PSE&G represents >90% of PSEG capital spending ● ~90% of PSE&G capital spending recovery is contem
Slide 23: PSEG: Reliable, Solid Operations
PSEG: Reliable, Solid Operations CONSISTENT, OUTSTANDING OPERATIONS ● Safety and reliability metrics regularly first quartile ● Stable PSE&G customer rates ● PSE&G achieving its highest ever customer satisfaction scores for electric and gas service PSE&G has won the ReliabilityOne® Award 19 years
Slide 24: PSE&G Electric & Gas Combined Bill
PSE&G Electric & Gas Combined Bill ‘% of New Jersey Household Income Including Low-income Customers After Assumed Credits 45% 4.0% 3.5% 3.0% 2.5%2 2.0% 15% . / 18% 1.0% 18% 1.8% 0.5% 0.0% ‘2009 ©2010 «2011 «2012-2013. 2014-2015 2016 «2017-2018 2019-2020 2021 —=—Combined Bill as 2% of NU Median Incom
Slide 25: PSE&G: Robust capital program aligned with state clean energy goals
PSEG: A sustainable, predictable growth platform PSE&G: • Focus on Safety, Operations and Robust capital program Customer Satisfaction aligned with state clean • Robust and Growing Investment Profile energy goals, Across all Areas increased by $1B to – Transmission $14B-$16B through – Electric and G
Slide 26: PSE&G – New Jersey's largest utility
PSE&G – New Jersey’s largest: • Electric and gas distribution utility • Transmission business • Investor in renewables and energy efficiency • Appliance service provider Electric Gas Customers 2.3 Million 1.9 Million 5-Year Annual Customer Growth* 0.8% 0.6% 2020 Electric and 39,666 2,370M Gas Sales
Slide 27: Sustained safety and reliability performance
Continued focus on safety and reliability performance is demonstrated by sustained results OSHA Incident Rate OSHA Recordable Better Better 7.0 Days Away Rate 6.0 150.0 5.0 4.0 4th Quartile 100.0 4th Quartile 3.0 3rd Quartile 3rd Quartile 2.0 2nd Quartile 50.0 2nd Quartile 1st Quartile 1.0 1st Quart
Slide 28: Customer Satisfaction
Customer Satisfaction J.D. Power Residential Satisfaction J.D. Power Electric Residential J.D. Power Gas Residential Key J.D. Power Satisfaction 1Q 1Q Takeaways • Strong multi-year performance in 767 all categories with continued 727 742 736 743 748 759 725 690 705 improvement resulting in PSE&G’s h
Slide 29: PSE&G's 5-year capital program increased by $1 billion
PSE&G’s 5-year capital program increased by $1 billion to $14B - $16B with investments focused on reliability, resiliency, grid modernization and clean energy PSE&G Capital Spending 4,000 2021E – 2025E 3,500 Unapproved Programs: 3,000 • ES III, CEF-ES, electrification initiatives, and 2,500 IAP • GS
Slide 30: Expanded program firms 6.5%-8.0% rate base growth
Expanded investment program firms ~6.5%-8.0% compound annual rate base growth over this period PSE&G Year-End Rate Base 35,000 2020-2025E CAGR ~8% - Unapproved 30,000 ~6.5% - Programs 25,000 ($ Millions) 20,000 15,000 10,000 5,000 - 2020 2021E 2022E 2023E 2024E 2025E Transmission Electric Distributi
Slide 31: Transmission investment program
Transmission: Investment program is focused on enhancing reliability and resiliency, and replacing aging infrastructure • 69 kV conversion effort to improve reliability and address aging system transitioning from large end-of-life projects • Load increases in certain areas, driven by electrification
Slide 32: Increased frequency of extreme weather events in New Jersey
New Jersey is experiencing an increased frequency of extreme weather events, challenging existing infrastructure 56” flood level at Somerville Substation following TS Ida August 2021 32
Slide 33: Energy Strong program benefit during Tropical Storm Ida
Electric Distribution – Energy Strong program to replace and rebuild substations in flood zones has brought tremendous benefit to customers Somerville Withstood 56” of Flooding during TS Ida, and Remained Operational • Superstorm Sandy & Hurricane Irene caused flooding at 29 substations and switchin
Slide 34: Electric Distribution last mile investment program
Electric Distribution – Last mile investment program will modernize the system and improve reliability for customers who are more dependent on the system than ever before Last mile electric system modernization investments: Overhead Wire – Main circuit • Targeted asset replacements – stem Poles, ove
Slide 35: Infrastructure Advancement Program
Infrastructure Advancement Program – 4-year distribution investment program to improve reliability, reduce emissions and create jobs; to be filed with BPU and expected to start mid-2022 Investment $ millions Components Underground cable replacement, spacer cable, pole upgrades, Last Mile - Reliabili
Slide 36: Gas Distribution methane reduction investments
Gas Distribution – Investments to modernize the infrastructure and drive reduction in methane leaks % Reduction of absolute methane (CH4) emissions from 2011 as reported to the EPA under 40 CFR 98, Subpart W 0% PSE&G is on track to achieve its ~22% methane reduction goal by 2023 -10% from 2018 level
Slide 37: Clean Energy Future programs
Clean Energy Future programs focus on reducing customers’ energy consumption and creating clean energy jobs for under-employed and diverse New Jersey residents Energy Energy Cloud (EC) Electric Energy Efficiency (EE) “AMI” Vehicles (EV) Storage (ES) $1B $707M* $166M $109M Commitment Investment Inves
Slide 38: PSE&G investments create New Jersey job growth
PSE&G investments create New Jersey job growth and support diverse recruiting efforts Infrastructure programs: Over 1,500 current direct jobs through GSMP II and ES II, and over 500 more through anticipated IAP filing Clean Energy: Over 3,000 direct jobs planned, with a focus on unemployed, under-em
Slide 39: Technology investments for efficiency and customer access
Investments in technology are making us more efficient and reliable, and giving customers greater access to information and programs Advanced Metering Infrastructure Providing real time information to help customers manage their usage, improving operational efficiencies, and supporting new energy te
Slide 40: Managing O&M costs, preserving customer affordability
Successfully managing O&M costs, preserving customer affordability PSE&G O&M Expense (1) • Demonstrated ability to 2017 – 2022E CAGR = 2.2% control O&M, preserving 1,200 earnings and returns in a low sales growth environment 1,000 800 • Distribution O&M has ($ Millions) 600 remained relatively flat
Slide 41: Typical residential bills down almost 25%
PSE&G: Typical residential electric and gas bills are down almost 25% from over a decade ago, or about 40% adjusted for inflation Combined Monthly Typical Residential Electric and Combined Typical Monthly Residential Electric and Gas Customer Bill* Comparison 2008 to 2021 with Gas Customer 2024E Bil
Slide 42: PSE&G meeting takeaways
PSE&G: A sustainable, predictable growth platform • Focus on Safety, Operations and Customer PSE&G: Satisfaction – Continuously Improving Operational Performance Robust capital program • Robust and Growing Investment Profile Across aligned with state clean all Areas energy goals, • Transmission, Ele
Slide 43: PSEG Operations: Future zero-carbon operations
PSEG: A sustainable, predictable growth platform PSEG Operations: • Fossil Sale Update Future zero-carbon • Long-term Benefits of Nuclear operations and • Cost Control and infrastructure Gross Margin Stability opportunities aligned with NJ energy policy • OSW Opportunities Ralph LaRossa Chief Operat
Slide 44: Sale of PSEG Fossil fleet
Sale of PSEG Fossil fleet expected to close by year-end 2021 or early 2022 Agreement to sell PSEG Power’s 6,750 MW PSEG Fossil generating portfolio to ArcLight, consisting of 13 generating units located in NJ, CT, MD and NY The sale price for the PSEG Fossil portfolio is approximately $1.9 billi
Slide 45: Benefits of long-term solution for nuclear generation
Benefits of a long-term solution recognizing the carbon-free attributes of nuclear generation Ensures workforce stability and ability Salem/Hope Creek produce >90% of NJ’s to attract and retain nuclear talent zero-carbon energy or ~40% energy used Enhances nuclear fuel purchasing and PSEG Nu
Slide 46: Cost control and stability of gross margin
Cost control and stability of gross margin support results Zero-Carbon, Infrastructure & Other Power O&M Expense (1) Gross Margin 2017 – 2022E CAGR = (7.3%) 2022E 100% 1,200 1,000 80% 800 60% Over 90% of ($ Millions) 600 40% gross margin hedged in 400 20% 2022E 200 0% - Margin 2017 2018 2019 2020 20
Slide 47: Benefits of offshore wind development
Benefits of offshore wind development • Offshore Wind Strategic Plan to develop 7,500 MW by 2035 is a key component of NJ’s ‘100% clean energy by 2050’ target • Captures best regional renewable resource • Supports economic growth engine for new supply chain, including the New Jersey Wind Port • OREC
Slide 48: PSEG current offshore wind opportunities
PSEG current offshore wind opportunities Ocean Wind Project GSOE/ Skipjack Offshore Transmission Ocean Wind 1 is a 75/25 Joint Venture PSEG owns 50% of Garden State In April 2021, the BPU and PJM between Ørsted NA and PSEG Offshore Energy (GSOE) with Ørsted opened a competitive solicitation fo
Slide 49: PSEG Operations meeting takeaways
PSEG: A sustainable, predictable growth platform • Sale of Fossil Positions PSEG PSEG for Increasing Stability Operations: • Nuclear is of Critical Importance Future zero-carbon to Clean Energy Goals operations and • Disciplined Approach to the infrastructure Business Remains a Key opportunities ali
Slide 50: PSEG Regulatory & Policy Priorities
PSEG: A sustainable, predictable growth platform PSEG Regulatory & Policy Priorities: • Resolution of Multiple Uncertainties Long runway of investment supported • State and Federal Policy Focus by regulatory & policy Supports Our Infrastructure and Clean Energy Investments advocacy paired with effec
Slide 51: Resolved several uncertainties in the past year
PSEG has resolved several uncertainties in the past year, leading to more stability and better visibility Resolution Impact Settlement for transmission ROE Has three-year stay-out for settling parties at 9.9% filed at FERC Secured ~$2B of utility capex to Settled Clean Energy Future filings
Slide 52: Regulatory & policy focus supports low carbon platform
PSEG regulatory & policy focus supports our low carbon infrastructure platform New Jersey Focus • PSE&G continuing investments in critical energy infrastructure to provide customer benefits; Energy Strong program improves resiliency and reliability against more frequent and severe weather events • C
Slide 53: Advancing Powering Progress investments aligned with NJ policy
PSEG is focused on advancing Powering Progress investments aligned with NJ’s energy policy goals Past Programs (2009-present) Energy Policies Ongoing & Opportunities • Transmission Expansion • IAP 2021 Successor Solar Framework • Last Mile Reliability • Energy Strong I 2021 NJ Offshore Wind Plan • C
Slide 54: Long-term solution for zero-carbon nuclear fleet
PSEG is pursuing a long-term solution for our zero-carbon nuclear fleet Potential federal solutions The Biden Administration's climate agenda recognizes the importance of preserving existing nuclear units in order to decarbonize the nation’s power supply by 2035 Nuclear production tax credit of $1
Slide 55: Sound governance and unwavering ethics
Sound governance and unwavering ethics are the foundation of our high-performing culture • Diverse Board of Directors Independent Lead Director – Dr. Shirley Ann Jackson 50% are gender and/or ethnically diverse 4 of 6 Board Committees are chaired by women or ethnically diverse director 4 new
Slide 56: Regulatory & Policy Priorities meeting takeaways
PSEG: A sustainable, predictable growth platform PSEG Regulatory & Policy Priorities: • Stability Increased Through Resolution of Prior Uncertainties Long runway of investment supported by regulatory & • Capital Program Focused on Infrastructure policy advocacy paired with and Clean Energy Investmen
Slide 57: PSEG Financial Review & Outlook
PSEG: A sustainable, predictable growth platform PSEG Financial Review & Outlook: • Improving Business Mix • Strong Cash Flow and Solid ‘BBB’ Growth platform of Credit Ratings, Providing Financial predictable Strength and Flexibility earnings, dividends • Controlling O&M Including PSEG Power and cap
Slide 58: Regulated utility growth, improved business mix, enhanced ESG profile
Long-term focus on regulated utility growth, improving our business mix and enhancing our ESG profile Before Non-Nuclear Divestiture After Non-Nuclear Divestiture PSE&G ~90% and Zero-Carbon, Business Mix Growing Regulated Contribution Infrastructure and Other ~10% 6,750 MW of Fossil Generation with
Slide 59: Non-nuclear asset sales cash flow for debt reduction and buybacks
Sale of non-nuclear assets generated significant cash flow for debt reduction and share repurchases Sources and Uses of Cash Net Solar Sale Proceeds ~$0.4B Net Fossil Sale Proceeds ~$1.75B Total After-Tax Proceeds ~$2.15B 2023 and 2031 Power Senior Note Redemptions and (~$1.6B) Estimated Make-Whole
Slide 60: Target solid BBB credit ratings
Target PSEG’s senior unsecured credit ratings at ‘Solid’ BBB Target PSEG Issuer Security S&P Moody’s Credit Metric Aa3 Senior Secured Regulatory Equity PSE&G Ratio ~55% A Outlook Stable Negative Baa1 Senior Unsecured PSEG Power BBB FFO / Debt ~40% Outlook Stable Negative Baa1 Senior Unsecured BBB FF
Slide 61: Business profile underpins credit ratings and debt capacity
Enhanced business profile underpins solid credit ratings and significant debt capacity PSEG 2022E – 2025E Funds from Operations / Debt Average Debt Capacity 20% $2.5 Average 2022E – 2025E 15% $ Billions ~Mid-Teens Minimum Threshold 10% $0.0 Targeting Solid ‘BBB’ credit ~$3.5B of investment capacity
Slide 62: Controlled O&M with continuous improvements
PSEG has controlled O&M with a focus on continuous improvements and controlling support costs related to non-nuclear divestiture PSEG O&M Expense (1) 2017 – 2022E CAGR = (1.8%) 2,500 • All support costs 2,000 related to PSEG Fossil to be fully 1,500 eliminated with ($ Millions) successful 1,000 just
Slide 63: Strategic repositioning delivers more predictable earnings
Strategic repositioning will deliver more predictable earnings PSEG non-GAAP Operating Earnings per Share $3.50 to $3.65 $3.35 to $3.55 $3.30 to $3.60 2022 Earnings Guidance Zero-Carbon, • 8/2/21 - Raised Infrastructure • Aligned with 2021 original guidance bottom end and Other 5¢/share on first- Ex
Slide 64: Strategic repositioning delivers higher earnings growth rate
Strategic repositioning will deliver a higher earnings growth rate PSEG non-GAAP Operating Earnings per Share $3.50 to $3.65 $3.35 to $3.55 $3.30 to $3.60 $3.12 2018* 2021E Original 2021E Updated 2022E 2025E *See slides A, B and C for items excluded from Net Income/(Loss) to reconcile to non-GAAP Op
Slide 65: Expanded investment program firms rate base growth
Expanded investment program firms compound annual rate base growth CAGR YE 2021E- YE 2020- PSE&G Year-End Rate Base YE 2025E 7.5% YE 2025E 8% 6% 6.5% 35,000 30,000 25,000 ($ Millions) 20,000 15,000 10,000 5,000 - 2020 2021E 2022E 2023E 2024E 2025E Transmission Electric Distribution Gas Distribution
Slide 66: PSE&G earnings growth drives long-term earnings growth
PSE&G earnings growth drives PSEG’s long-term earnings growth rate PSEG non-GAAP Operating Earnings per Share • Earnings growth driven by robust utility capital program aligned with state Clean Energy goals, supportive recovery mechanisms and rate case, and cost PSEG control including well funded pe
Slide 67: Raising indicative annual dividend increase to $0.12
Raising our indicative annual dividend increase from $0.08 to $0.12 per share, effective Q1 2022 Annual PSEG Dividend per Share $2.16* Opportunity for $2.04* $1.96 consistent and $1.88 $1.72 $1.80 sustainable $1.64 $1.56 dividend growth - $1.44 $1.48 now with a higher growth rate 2013 2014 2015 2016
Slide 68: 2021 Investor Conference Takeaways
2021 Investor Conference Takeaways ● PSEG: 90% regulated business mix from stable, predictable operations of PSE&G, 10% Zero-Carbon Generation, Infrastructure and Other ● PSE&G: Robust capital program aligned with state clean energy goals, increased by $1B to $14B-$16B through 2025, at our best-in-c
Slide 69: Appendix
* PSEG Appendix 69
Slide 70: 2022 Operating Earnings Guidance
2022 Operating Earnings Guidance consistent with 2021, reflecting continued growth at PSE&G and transition to more predictable business mix Non-GAAP Operating Earnings Guidance Operating Earnings Original 2021 $ millions (except EPS) 2022E(1) 2021E(2) Guidance PSE&G $1,485 - $1,575 $1,420 - $1,470 $
Slide 71: PSEG Sustainability & ESG Summary
PSEG Sustainability & ESG Summary Leadership Policies & Goals Recognition & Scores • Clean Energy Future (CEF): PSE&G received • PSEG is a vocal advocate for an economy- • Member of S&P Sustainability Yearbook 2021 regulatory approvals to invest $2 billion to wide price on carbon emissions and decar
Slide 72: Residential bills lowest amongst peers for gas
PSE&G’s residential customer bills are lowest amongst peers for Gas and lower than average for Electric service Monthly Electric Bills Monthly Gas Bills $250 $250 $201 $200 $200 $176 $170 $154 $149 $150 $138 $150 $139 $130 Average - $131 $126 $129 $118 $112 $114 $114 Average - $101 $97 $99 $96 $100
Slide 73: Combined bill relative to median income has declined
Typical residential combined electric and gas bill relative to median income has declined from over 4% to ~2.5% over the past decade PSE&G Electric & Gas Combined Bill % of New Jersey Household Income Including Low-income Customers After Assumed Credits 4.5% 4.3% 4.0% 4.0% 3.7% 3.4% 3.4% 3.3% 3.5% 3
Slide 74: PSE&G investing $1B in energy efficiency
PSE&G investing $1B of capital in energy efficiency, one of the largest efforts in the U.S. PSE&G Investment: PSE&G Energy Efficiency (EE) $1 Billion, 3-Year Commitment Offerings delivering universal access to Residential Commercial & lower customer bills through a Programs Industrial Programs compr
Slide 75: Executive Bios
Executive Bios Kim Ralph Ralph Tammy Dan Hanemann LaRossa Izzo Linde Cregg President & Chief Operating Chairman, EVP & General EVP & CFO Chief Operating Officer Officer President & CEO Counsel Public Service Public Service Public Service Public Service Public Service Enterprise Group Electric & Gas
Slide 76: Glossary of Terms
Glossary of Terms AFUDC – Allowance for Funds Used During Construction AMI – Automated Metering Infrastructure BPU – New Jersey Board of Public Utilities BGSS – Basic Gas Supply Service CEF – Clean Energy Future CEF-EE – Energy Efficiency PSEG Investor Relations CEF-EV – Electric Vehicle 80 Park Pla
Slide 77: Reconciliation of Non-GAAP Operating Earnings
Reconciliation of Non-GAAP Operating Earnings Public Service Enterprise Group Incorporated - Consolidated Operating Earnings (Non-GAAP) Reconciliation Year Ended Reconciling Items December 31, 2020 2019 2018 2017 2016 2015 2014 2013 ($ millions, Unaudited) Net Income $ 1,905 $ 1,693 $ 1,438 $ 1,574
Slide 78: Reconciliation for PSE&G and PSEG Enterprise/Other
Reconciliation of Non-GAAP Operating Earnings for PSE&G and PSEG Enterprise/Other PSE&G Operating Earnings (Non-GAAP) Reconciliation Year Ended Reconciling Items December 31, 2020 2019 2018 2017 2016 2015 2014 2013 ($ millions, Unaudited) Net Income $ 1,327 $ 1,250 $ 1,067 $ 973 $ 889 $ 787 $ 725 $
Slide 79: Reconciliation for PSEG Power
Reconciliation of Non-GAAP Operating Earnings for PSEG Power PSEG Power LLC - Operating Earnings (Non-GAAP) Reconciliation Year Ended Reconciling Items December 31, 2020 2019 2018 2017 2016 2015 2014 2013 ($ millions, Unaudited) Net Income $ 594 $ 468 $ 365 $ 479 $ 18 $ 856 $ 760 $ 644 (Gain) Loss o
Public Service Enterprise Group — Investor Day (September 2021) on 6ix