Public Service Enterprise Group Incorporated · NYSE:PEG

Public Service Enterprise — CECP CEO Forum 2019

23 slides from Public Service Enterprise's conference presentation, May 8, 2019

  1. Slide 1: Changing the Utility/Power Paradigm

    CHANGING THE UTILITY/POWER PARADIGM CECP’s Strategic Investor Initiative 1

  2. 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

  3. Slide 3: GAAP Disclaimer

    GAAP Disclaimer PSEG presents Operating Earnings in addition to its Net Income reported in accordance with accounting principles generally accepted in the United States (GAAP). Operating Earnings are non-GAAP financial measures that differ from Net Income. Non-GAAP Operating Earnings exclude the imp

  4. Slide 4: A 116-year Newark, New Jersey-based business investing in critical energy infrastructure

    A 116 - year Newark, New Jersey-based business investing in critical energy infrastructure, providing safe and increasingly clean energy through two strong businesses Electric & Gas Distribution and Transmission Strategy: Investments aligned with public policy and customer needs Value Proposition: A

  5. Slide 5: Largest utility in New Jersey, competitive generation in the Northeast and a U.S. solar portfolio

    Largest utility in New Jersey, competitive generation in the Northeast and a U.S. solar portfolio, and a utility management contract for Long Island PSE&G: Utility Operations PSEG Power: Merchant Generation Plants 211 414 MW MW DC New York DC ISO Bethlehem Energy Center (BEC) Bridgeport (incl. Bridg

  6. Slide 6: Aspiring to change the Utility-Power Paradigm

    Aspiring to change the Utility-Power Paradigm PSEG Evolution and Major Milestones Beyond 2019 Success driven by 1997 - 2019 “Powering Progress” the quality, not the Electric Industry quantity of the 1903– 1997 Restructuring energy our Meeting 20th Energy customers use. Century Infrastructure Energy

  7. Slide 7: New Jersey has advanced a clean energy agenda

    New Jersey has advanced a clean energy agenda New Jersey’s clean energy agenda: Preserve Solar Offshore Wind Nuclear 50% renewables PSE&G NJ’s largest PSEG long-term supporter by 2030 and NJ’s ZECs preserve 90% investor in solar of NJ offshore wind of NJ’s carbon-free 100% clean energy generation by

  8. Slide 8: PSE&G's proposed Clean Energy Future program

    PSE&G’s proposed Clean Energy Future program– Spreading the benefits of EE to save the planet • Energy Efficiency: Residential and C&I programs to lower energy bills and combat Program Investment $ Billion climate change  Savings targeting 2% electric and Energy Efficiency $2.5 0.75% gas savings co

  9. Slide 9: PSEG has invested $1.7 Billion in 625 MWs of Solar

    PSEG has invested $1.7 Billion in 625 MWs of Solar PSEG SolarSource Portfolio (MWDC) 11 4 11 2 12 13 15 63 34 74 103 45 13 15 PSEG Power has invested ~$0.8B PSE&G: has invested ~$0.9B across in 23 projects in 14 states its Solar portfolio totaling 211 MWs totaling 414 MWs 9

  10. Slide 10: PSE&G's infrastructure investment – reliability and resiliency

    PSE&G’s infrastructure investment – reliability and resiliency in a climate-challenged world Gas pipe replacement 2019-2023 and 2014-2018 beyond Gas Gas System Modernization GSMP 2 – $1.9B, five Program (GSMP 1) - year program to Replaced 510 miles of aging replace another 875 cast-iron and unprotec

  11. Slide 11: Power's fleet transformation has improved the climate

    Power’s fleet transformation has improved the climate Cleaner 50% less than PJM= ~2.5 million cars 43% decline 2005-2018 2005 IS THE STARTING POINT FOR OUR CLIMATE GOALS 11

  12. Slide 12: PSEG's operating strategy delivers top performance

    PSEG’s operating strategy delivers top performance OSHA Incident Rate SAIDI 350 3.0 300 2.5 250 2.0 3rd Quartile 200 1.5 2nd Quartile 150 4th Quartile 1.0 3rd Quartile 1st Quartile 100 2nd Quartile 0.5 50 1st Quartile PSEG Result - - PSE&G Result 2013 2014 2015 2016 2017 2018 2013 2014 2015 2016 201

  13. Slide 13: Operating Earnings and capital allocation

    Increased capital allocation to the utility to address infrastructure needs, customer expectations and public policy Capital allocation to PSE&G grows from 77% to over 90%, furthering the shift in the business mix Operating Earnings 2014–2018: 2019E – 2023E*: ~$19 Billion ~$12 - $17 Billion Capital

  14. Slide 14: Stable business mix provides opportunity for consistent and sustainable dividend growth

    Stable business mix provides opportunity for consistent and sustainable dividend growth PSEG has a 112 year record of paying dividends PSE&G 2019 non- Annual Dividend Per Share GAAP $2.40 PSE&G Operating (10-Year CAGR: 3.5%) $2.20 EPS Earnings Guidance $2.00 $1.88 Range $1.80 $1.80 $1.72 $1.64 $1.60

  15. Slide 15: Customer's bills have declined, supporting needed investment in the system

    Customer’s bills have declined, supporting needed investment in the system PSE&G Typical Residential Customer Bill* Combined Typical Residential Electric and Gas Customer Bill Comparison 2008 to 2019 with Inflation 1 Cost impact of $350 approved and Inflation proposed programs $300 from GSMP2, ES2,

  16. Slide 16: Successful execution of PSEG strategy recognized by the market

    Successful execution of PSEG strategy recognized by the market PSEG Comparative Market Performance 1/3/5 year Total Shareholder Returns (For the periods ended March 31, 2019) One Year Three Year Five Year 46% 88% 29% 40% 68% 74% 68% 22% 29% 30% 19% 9% PSEG S&P 500 Dow Jones Utilities Average S&P 500

  17. Slide 17: Sustainability is a hallmark of Public Service

    Sustainability is a hallmark of Public Service Environmental Corporate Transparency and Diversity and Stewardship Citizenship Disclosure Inclusion With all of our sustainability efforts, we set our sights on supporting PSEG’s strategic business model and objectives, reflecting the alignment between

  18. Slide 18: PSEG is committed to excellence in corporate governance

    PSEG is committed to excellence in corporate governance Shirley Ann Jackson Barry H. Ostrowsky William V. Hickey Susan Tomasky Richard J. Swift Alfred W. Zollar Willie A. Deese Laura A. Sugg David Lilley Ralph Izzo Skills and Qualifications Accounting/Finance experience is important in overseeing ou

  19. Slide 19: PSEG's commitment to its many stakeholders is widely recognized

    PSEG’s commitment to its many stakeholders is widely recognized Industry Employer PA Consulting Mid-Atlantic America’s Best Breast Cancer Walk Region award – for the 17th Recognized for Diversity Employers List (2019) Highest # of Participants consecutive year (2018) by 2020 Women on PSEG LI - (2017

  20. Slide 20: Thank You

    THANK YOU 20

  21. Slide 21: Appendix

    APPENDIX 21

  22. Slide 22: PSEG Consolidated Operating Earnings (Non-GAAP) Reconciliation

    Public Service Enterprise Group Incorporated - Consolidated Operating Earnings (Non-GAAP) Reconciliation Year Ended Reconciling Items December 31, 2018 2017 2016 2015 2014 2013 ($ millions, Unaudited) Net Income (Loss) $ 1,438 $ 1,574 $ 887 $ 1,679 $ 1,518 $ 1,243 (Gain) Loss on Nuclear Decommission

  23. Slide 23: PSE&G and PSEG Power Operating Earnings (Non-GAAP) Reconciliation

    PSE&G Operating Earnings (Non-GAAP) Reconciliation Year Ended Reconciling Items December 31, 2018 2017 2016 2015 2014 2013 ($ millions, Unaudited) Net Income (Loss) $ 1,067 $ 973 $ 889 $ 787 $ 725 $ 612 Tax Reform - (10) - - - - Operating Earnings (non-GAAP) $ 1,067 $ 963 $ 889 $ 787 $ 725 $ 612 PSE

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