Public Service Enterprise Group Incorporated · NYSE:PEG
Public Service Enterprise — Investor Presentation (March 2025)
57 slides from Public Service Enterprise's investor presentation, March 2025
Slide 1: PSEG Investor Update
PSEG Investor Update Leading toward a sustainable future March 2025 1
Slide 2: Forward-Looking Statements
PSEG Investor Update March 2025 Forward-Looking Statements Certain of the matters discussed in this report about our and our subsidiaries' future performance, • development, adoption and use of Artificial Intelligence by us and our third-party vendors; including, without limitation, future revenues,
Slide 3: GAAP Disclaimer
PSEG Investor Update March 2025 GAAP Disclaimer PSEG presents Operating Earnings in addition to its Net Income/(Loss) reported in Non-GAAP EBITDA excludes the same items as our non-GAAP Operating Earnings accordance with accounting principles generally accepted in the United States measure, as well
Slide 4: Public Service Enterprise Group
PSEG Investor Update March 2025 Public Service Enterprise Group
Slide 5: 2025: A Strong Business Mix and Predictable Growth
PSEG Investor Update March 2025 PSEG 2025: A Strong Business Mix and Predictable Growth PSE&G • 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 PSEG PSEG Power & Other • Carbon-Fr
Slide 6: Vision: Powering Progress
PSEG Investor Update March 2025 Operational Disciplined Financial PSEG’s Excellence: Investment: Strength: Powering Best-in-class utility and exemplary nuclear >90% of capital allocation through 2029 to PSE&G Solid balance sheet to fund our growth Progress performance and other regulated investments
Slide 7: Financial Outlook: More Predictable, Well Positioned for the Future
PSEG Investor Update March 2025 PSEG Financial Outlook | More Predictable, Well Positioned for the Future • Achieved balanced settlement of first distribution base rate case in six years; Recovered all Settled Major Regulatory Filings in 2024 investments deemed prudent for recovery; Maintained favor
Slide 8: 2025-2029 Outlook Incorporates Solid Growth Pipeline with Upside
PSEG Investor Update March 2025 PSEG’s 2025-2029 Outlook Incorporates Solid Growth Pipeline with Upside • Gas System Modernization Program III - potential for incremental in-state resiliency investment Higher/Expanded Regulated Investment in Clauses • Electric System Infrastructure Advancement Progr
Slide 9: PSEG Growth Opportunities Aligned with Key Energy Transition Policies
PSEG Investor Update March 2025 PSEG Growth State Policies: Federal Policies: Opportunities • NJ Governor signed legislation adopting $500M • Inflation Reduction Act (2022) Aligned with of tax incentives to attract new investment in Artificial Intelligence (AI) to NJ (2024) • Infrastructure Investme
Slide 10: PSEG: Key Assets and Leadership
PSEG Investor Update March 2025 PSEG: Key Assets and Leadership PSE&G – Best-in-Class Regulated Electric & Gas T&D PSEG Power & Other Utility Focused on Affordability, Reliability and Customer Satisfaction • Solid nuclear operations with exemplary ratings on all units, gas supply operations benefiti
Slide 11: PSEG: Financial Strength to Achieve Strategic Plan
PSEG Investor Update March 2025 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
Slide 12: PSE&G Provides Compelling Value for Customers
PSEG Investor Update March 2025 PSE&G Provides Compelling Value for Customers We continuously target top quartile performance to deliver better service, at lower cost Delivering Highest Customer Reliability at Lowest Cost: Lowest Cost, but More Leaks/Mile than Peers: Achieving low SAIDI outage score
Slide 13: Public Service Electric & Gas
PSEG Investor Update March 2025 Public Service Electric & Gas
Slide 14: PSE&G – A Single State, Dual Jurisdiction Utility
PSEG Investor Update March 2025 PSE&G – A Single State, Dual Jurisdiction Utility New Jersey’s largest transmission and distribution utility • Electric and Gas Distribution • Utility Provider of Energy Efficiency PSE&G YE 2024 Rate Base*** and Renewable Energy Programs Transmission $13.3 B • Electri
Slide 15: Top Safety and Reliability Performance Metrics
PSEG Investor Update March 2025 Top Safety and Reliability Performance Metrics Driven by Nonstop Focus on Continuous Improvement OSHA Recordable SAIDI Open Leaks Incidence Rate Consistent top performance Sustained top decile performance Open year-end gas leaks in OSHA recordable incidence in electri
Slide 16: PSE&G's residential electric bills are average for the region
PSEG Investor Update March 2025 $200 Monthly Electric Bills $178 $179 $180 $156 $160 $140 $133 $135 $135 Average = $124 $124 $120 $100 $100 $88 $91 $93 $80 $75 $60 PSE&G’s residential $40 electric bills are $20 average for the region $0 JCP&L PP&L BG&E Rockland PECO PSE&G LIPA O&R Atlantic Atlantic
Slide 17: PSE&G Combined Bills ~3% of Median NJ Income
PSEG Investor Update March 2025 PSE&G Combined Bills ~3% of Median NJ Income, Favorable “Share of Wallet” vs. Lower-Cost Regions 5.0% PSE&G Electric & Gas Combined Bills(1) % of New Jersey Household Income Affordability 4.5% Including Low-Income Customers After Assumed Credits of the combined bill h
Slide 18: Share of Wallet – PSE&G is a Top Performer Nationally
PSEGInvestor PSEG InvestorUpdate Update March March2025 2025 Mississippi West Virginia Arkansas Kentucky Georgia Alabama Louisiana Maine Share of Wallet – Oklahoma New York South Carolina PSE&G is a Top Connecticut Tennessee Performer Nationally Michigan Florida Indiana in Affordability North Caroli
Slide 19: Regulated 5-Year Capital Investment Plan of $21B-$24B
PSEG Investor Update March 2025 Regulated 5-Year Capital Investment Plan of $21B-$24B 2025E – 2029E 6 5 4 Driven by Infrastructure ($ Billions) 3 Modernization, Energy Efficiency, 2 and Growing Customer Demand 1 0 2024 2025E 2026E 2027E 2028E 2029E Transmission Electric Distribution Gas Distribution
Slide 20: Regulated Capital Investment Plan ~$3B Higher for 2025-2029
PSEG Investor Update March 2025 Regulated Capital Investment Plan ~$3B Higher for 2025-2029 2023-2027E: $15.5B-$18B 2024-2028E: $18B-$21B 2025E-2029E: $21B-$24B Rate Base CAGR: 6%-7.5% Rate Base CAGR: 6%-7.5% Rate Base CAGR: 6%-7.5% 24 22 20 18 16 ($ Billions) 14 12 10 8 6 4 2 0 Transmission Electri
Slide 21: Robust Investment Opportunities
PSEG Investor Update March 2025 Robust Investment Opportunities Regulated Year-End Rate Base 50 45 40 35 Provide Consistent, Long-Term ($ Billions) 30 Rate Base Growth 25 20 15 10 5 0 2023 2024 2025E 2026E 2027E 2028E 2029E Transmission Electric Distribution Gas Distribution Clean Energy Transmissio
Slide 22: Transmission Investment Focused on 69kV Upgrades
PSEG Investor Update March 2025 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
Slide 23: Electric Distribution Investment Focused on System Modernization
PSEG Investor Update March 2025 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 cur
Slide 24: Gas Distribution Investment Focused on Infrastructure Replacement
PSEG Investor Update March 2025 Gas Distribution Investment Focused on Infrastructure Replacement, Accelerating Emission Reduction Benefits Impact of GSMP on Methane Reduction* Mileage of CI/US Inventory Remaining 0% 6,000 GSMP II extension settlement approved in October 2023: -20% -12% unprotected
Slide 25: PSE&G's Award-Winning Clean Energy Future Programs
PSEG Investor Update March 2025 PSE&G’s Award-Winning Clean Energy Future Programs are Delivering Benefits to Customers and Rate Base Growth Energy Energy Efficiency Efficiency Energy Energy Cloud “AMI” Cloud “AMI” Electric Vehicles Electric Vehicles BPU BPUapproved approved total programssince tota
Slide 26: PSE&G's Proposed Energy Efficiency Offerings
PSEG Investor Update March 2025 PSE&G’s Proposed Energy Efficiency Offerings: An Expanded Suite of Ten Residential, C&I, and Multifamily & Other programs Program Description Energy Efficient Products Offers incentives and on-bill repayment (OBR) for energy efficient equipment and appliances. Residen
Slide 27: Effective Cost Controls at PSE&G Help Mitigate Inflationary Impacts
PSEG Investor Update March 2025 Effective Cost Controls at PSE&G Help to Mitigate Inflationary Impacts and Preserve Customer Affordability PSE&G O&M Expense (1) $1,600 • Demonstrated ability to control O&M $1,400 • Focus on cost control provides $1,200 headroom for recovery of capital (Millions) inv
Slide 28: PSE&G Dual Jurisdiction Regulation
PSEG Investor Update March 2025 Distribution Transmission Distribution and Clean Energy PSE&G Dual Jurisdiction • State Regulatory Entity: NJ Board of Public Utilities Regulation Provides for a • Timely recovery of investment programs: Clean Energy Mixture of Investment and - Contemporaneous recover
Slide 29: Key Takeaways: Best-in-Class Operations
PSEG Investor Update March 2025 Key Takeaways: Best-in-Class Operations with Important System Investment Needs Driving Predictable Earnings Growth Operational Excellence: Delivering top-tier safety, Disciplined Investment: Programs driven by reliability and customer service, while maintaining infras
Slide 30: PSEG Power & Other
PSEG Investor Update March 2025 PSEG Power & Other
Slide 31: PSEG Power & Other
PSEG Investor Update March 2025 PSEG Nuclear • PSEG Power Operates Salem 1 & 2 and Hope Creek • 50% owner of Peach Bottom 2 & 3 • Total 3,758 MW • & Other Opportunities for growth PSEG Gas Supply Operations A stable, predictable business that generates significant free Power & Serves Basic Gas Suppl
Slide 32: Generation Fleet is 100% Carbon-Free
PSEG Investor Update March 2025 PSEG Generation Fleet is 100% Carbon-Free 1,400 PSEG Generation PSEG Generation Output Output 70 U.S.Average U.S. Average CO CO22 Intensity Intensity PSEG CO2 CO2 Intensity PSEG Generation Output (Million MWh) PSEG Intensity 1,200 60 Direct CO2 Intensity (lbs/MWh) 1,0
Slide 33: Decision to Retain Nuclear Units
PSEG Investor Update March 2025 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
Slide 34: PSEG Nuclear — Key Fleet Data
PSEG Investor Update March 2025 PSEG Nuclear — Key Fleet Data Fleet Average Capacity Factor of ~90% for Full Year 2024 • 57% PSEG ownership • 655.5 MW owned capacity • 50% PSEG ownership • Current license expires 2036 • 637.5 MW owned capacity • 18-month operating cycle • Current license expires 205
Slide 35: Nuclear is Critical to the Energy Transition
PSEG Investor Update March 2025 Nuclear is Critical to the Energy Transition Nuclear is a unique asset class providing reliable 24x7, carbon-free energy and price stabilization NJ Electric NJ Electric Generation Generation PSEG Nuclear provides ~40% of New Jersey’s energy and ~85% of byFuel Fuel Sou
Slide 36: Nuclear Growth Opportunities: Salem Capacity Uprate
PSEG Investor Update March 2025 PSEG Nuclear has Compelling Growth Opportunities: Salem Capacity Uprate • ~112 MW PSEG-share (includes ~7% thermal power increase and Simplified Plant Diagram complementary investments that improve secondary side generation efficiency) 1 2 3 4 5 • Lowers $/MWh generat
Slide 37: Additional PSEG Nuclear Growth Opportunities
PSEG Investor Update March 2025 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 increasi
Slide 38: Hydrogen Opportunities
PSEG Investor Update March 2025 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 i
Slide 39: Power & Other — Other Businesses
PSEG Investor Update March 2025 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 • M
Slide 40: Power & Other: Other Financial Considerations
PSEG Investor Update March 2025 PSEG Power & Other Other Financial Considerations • For 2025, total nuclear generation is forecasted to be 30-32 TWh of reliable, carbon-free energy Nuclear PTC Inflation Adjustment Illustration+ Year PTC +2% PTC +3% PTC +4% • Nuclear fuel commitments cover ~100% of e
Slide 41: Key Takeaways: Increasing Predictability
PSEG Investor Update March 2025 Key Takeaways: Increasing Predictability • Operational Excellence: • Disciplined Investment: - Solid nuclear operations with exemplary ratings on all units, - The PTC provides long-term price stability, driving our gas supply operations benefiting PSE&G customers, and
Slide 42: Financial Review & Outlook
PSEG Investor Update March 2025 Financial Review & Outlook
Slide 43: PSEG Full Year 2025 Guidance
PSEG Investor Update March 2025 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 $3.94 - $4.06 per share • PSEG 2025E outlook driven by: + New distribution base rates
Slide 44: Long-term Growth Outlook of 5%-7%
PSEG Investor Update March 2025 PSEG’s Long-term Growth Outlook of 5%-7% Driven by PSE&G’s Regulated Earnings 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% high
Slide 45: No new equity needed through 2029
PSEG Investor Update March 2025 While capital spending has increased, no new equity needed through 2029 to fund business plan 2025E – 2029E PSEG Sources and Uses of Cash PSEG Consolidated Funding PSE&G Growth PSE&G • Internally generated PSE&G cash flow • Incremental PSE&G debt PSE&G Dividend to • P
Slide 46: Strong Business Platform Supports Investment Grade Ratings
PSEG Investor Update March 2025 Strong Business Platform Supports Investment Grade Ratings PSEG Projected Average FFO/Debt (1) Debt Capacity (2025E-2029E) 20% $3.0 • We retain financial flexibility with debt capacity to capitalize on incremental growth $ Billions Projected Average 15% ~Mid-Teens opp
Slide 47: 2025 Indicative Annual Dividend Increase of 5%
PSEG Investor Update March 2025 PSEG’s 2025 Indicative Annual Dividend Increase of 5% Supported by Predictable Earnings Annual PSEG Dividend Per Share $2.52** $2.40 $2.28 $2.16 $2.04 $1.96 $1.88 $1.80 $1.72 $1.64 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025E 57% 59% 58% 57% 57% 56% 62% 66% 65%
Slide 48: Key Takeaways: A Strong Business Mix and Predictable Growth
PSEG Investor Update March 2025 Key Takeaways: A Strong Business Mix and Predictable Growth • 5%-7% long-term earnings growth rate for 2025-2029 driven by • Nuclear fleet with PTC stabilized, predictable cash flows and PSE&G rate base growth and PTC threshold for Nuclear multiple growth paths with m
Slide 49: Appendix
PSEG Investor Update March 2025 Appendix
Slide 50: Regulatory Objectives Achieved in 2024
PSEG Investor Update March 2025 Distribution Rate Case • Balanced settlement provided recovery of prudent investments while maintaining favorable affordability profile Regulatory Objectives • New distribution base rates took effect October 15, 2024, and represent an increase of ~1% per annum since P
Slide 51: PSEG Has Demonstrated Success in Controlling O&M
PSEG Investor Update March 2025 PSEG has Demonstrated Success in Controlling O&M, Keeping CAGR ~(1%) PSEG O&M Expense (1) $2,500 $2,000 (Millions) $1,500 $1,000 $500 $0 2019 2020 2021 2022 2023 2024 2025E PSEG Power Distribution Transmission PSEG (1) Excludes Nuclear ARO, Bethlehem Energy Center goo
Slide 52: PSEG Maintains a Solid Financial Position
PSEG Investor Update March 2025 PSEG Maintains a Solid Financial Position PSEG Public Service Electric & Gas PSEG Senior Unsecured Credit Ratings PSE&G Senior Secured Credit Ratings Moody’s = Baa2 / Outlook = Stable S&P = BBB / Outlook = Stable Moody’s = A1 / Outlook = Stable S&P = A / Outlook = Sta
Slide 53: EPS Reconciliation – FY 2024 versus FY 2023
PSEG Investor Update March 2025 PSEG EPS Reconciliation – FY 2024 versus FY 2023 $4.50 $5.25 $5.13 ~ ~ $4.00 $5.00 $0.17 $3.68 $3.48 $0.03 $3.54 $3.50 Transmission 0.02 Gross Margin and PTC 0.44 Renewables & Energy $3.00 O&M (0.12) $ / share Efficiency 0.03 Distribution: Depreciation & Interest (0.1
Slide 54: PSEG Provides a Compelling Value for Our Investors
PSEG Investor Update March 2025 PSEG Provides a Compelling Value Strong business mix and predictable growth for Our Investors • Regulated investment opportunities in P/E decarbonization of NJ economy and electrification Rolling average 2nd and 3rd year expectations of transportation and buildings 22
Slide 55: Glossary of Terms
PSEG Investor Update March 2025 Glossary of Terms A&G Administrative & General FERC Federal Energy Regulatory Commission PB Peach Bottom AFUDC Allowance for Funds Used During Construction FFO Funds From Operations PECO PECO Energy Company AMI Automated Metering Infrastructure GAAP Generally Accepted
Slide 56: Reconciliation of Non-GAAP Operating Earnings
PSEG Investor Update March 2025 Reconciliation of Non-GAAP Operating Earnings Public Service Enterprise Group Incorporated - Consolidated Operating Earnings (non-GAAP) Reconciliation Three Months Ended Year Ended (a) Includes the financial impact from positions with Reconciling Items December 31, De
Slide 57: Reconciliation of Non-GAAP Operating Earnings
PSEG Investor Update March 2025 Reconciliation of Non-GAAP Operating Earnings Public Service Enterprise Group Incorporated - Consolidated Operating Earnings (non-GAAP) Reconciliation Year Ended December 31, (a) Effective January 1, 2018, unrealized gains (losses) on equity Reconciling Items securiti
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