Public Service Enterprise Group Incorporated · NYSE:PEG

Public Service Enterprise — 2022 EEI Financial Conference

22 slides from Public Service Enterprise's conference presentation, November 2022

  1. Slide 1: 2022 EEI Financial Conference Supplement

    Public Service Enterprise Group 2022 EEI Financial Conference Supplement November 13 – 15, 2022 NYSE TICKER: PEG

  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/(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

  4. Slide 4: PSEG's Vision

    PSEG’s Vision: To power a future where people use less energy, and it’s cleaner, safer and delivered more reliably than ever. 4

  5. Slide 5: Continued focus on stability and predictability of our business results

    Continued focus on stability and predictability of our business results • PSEG 2022-2023: 90% regulated business mix from stable, predictable operations of PSE&G • PSE&G: Robust capital program of $15.5B – $18B from 2023 – 2027, aligned with state clean energy goals at our best-in-class utility – Ef

  6. Slide 6: Key PSEG 2022 EEI Messages

    Key PSEG 2022 EEI Messages Delivering on our Commitments: – PSEG has a 17-year track record of meeting or exceeding non-GAAP Operating Earnings guidance Current Guidance: – Narrowed 2022 Operating EPS Guidance to $3.40 – $3.50 per share – Reaffirmed 2022 – 2025 Operating EPS CAGR of 5% – 7% Looking

  7. Slide 7: 2023 Operating Earnings guidance of $3.35 to $3.55 per share

    2023 Operating Earnings guidance of $3.35 to $3.55 per share incorporates expected headwinds and actions to offset $4.00 Non-GAAP Operating EPS Drivers $3.40 - $3.50 $3.35 - $3.55 ~$(0.25) to ~$(0.30) ~$0.10 to ~$0.15 $3.50 ~$0.15 to ~$0.20 ~$0.05 to ~$0.10 ~$(0.15) to ~$(0.20) ~$0.05 to ~$0.10 • CF

  8. Slide 8: 2023 pension expectations capture 2022 asset returns and OPEB roll-off

    2023 pension expectations capture 2022 asset returns and the OPEB benefit roll-off, as well as mitigation actions to date 2022 vs. 2023 Pension and OPEB (Income) / Expense • Submitted regulatory • Higher 2023 filing with the BPU in expected return early September on plan assets requesting an order r

  9. Slide 9: Interest expense is higher but transmission recovery and hedge collateral roll-off help

    Interest expense is higher but transmission recovery and the roll-off of collateral on hedges will help dampen 2023 impact 2022 vs. 2023 Pre-Tax Interest Expense $600  Collateral pressures to decline pre-tax) as power delivered on hedges through 2023, with incremental ($ Millions) • PSEG 364-day te

  10. Slide 10: PSEG has extended cost reduction efforts into 2023

    PSEG has extended cost reduction efforts into 2023 to further mitigate the impacts of higher pension and interest costs 2018 – 2023E CAGR PSEG O&M (3.0%) PSE&G O&M 0.9% $2,500 $2,000 $1,500 ($ Millions) $1,000 $500 $0 2018 2019 2020 2021 2022E 2023E CFIO Distribution Transmission Note: CFIO excludes

  11. Slide 11: Significant backlog of base capital awaiting recovery in next rate case

    Significant backlog of base capital awaiting recovery in PSE&G’s next distribution rate case supports EPS CAGR to 2025 Base Capital Spending Eligible for Distribution Rate Case Recovery Stipulated Base: GSMP/ES/IAP ($0.5B of Total) ($ in billions) Thru 2022 2023 2024 Total Deferred Recovery: CEF-A

  12. Slide 12: Establishing 2023–2027 non-GAAP Operating EPS CAGR of 5%–7%

    Establishing 2023–2027 non-GAAP Operating EPS CAGR of 5%–7% $5.00 Non-GAAP Operating EPS Drivers $4.50 ~$0.20 to ~$0.25 7%, $4.52* ~$0.90 to ~$0.95 5%, $4.19* $4.00 • Improved energy prices, $3.35 - $3.55 ~$(0.05) to ~$(0.10) ~$(0.10) to ~$(0.15) at nuclear PTC levels, $3.50 partially offset by abse

  13. Slide 13: PSE&G's updated five-year spending is ~$1.5B to $2B higher

    PSE&G’s updated five-year spending is ~$1.5B to $2B higher, maintaining consistent rate base growth on a higher starting point PSE&G Capital Spending PSE&G Year-end Rate Base Year-end 20,000 40,000 Rate Base CAGR 18,000 6%-7.5% 35,000 $15.5B-$18B 16,000 $14B-$16B 30,000 14,000 12,000 25,000 ($ Milli

  14. Slide 14: PSE&G's Infrastructure Advancement Program

    PSE&G’s Infrastructure Advancement Program: 4-year investment begins proactive work on “Last Mile” reliability Investment Total Description Replace 1960s-era 4kV switchgear with modern equipment at five stations and Electric Distribution – Inside Plant ~$205M replace oil-filled circuit breakers with

  15. Slide 15: Inflation Reduction Act establishes a nuclear power production tax credit

    Inflation Reduction Act (IRA) of 2022 establishes a nuclear power production tax credit, expands incentives and promotes carbon-free generation IRA 2022 Provisions Enacts a nuclear power production tax credit (PTC) for existing generation  PSEG qualifies for the initial PTC of up to $15/MWh subject

  16. Slide 16: EEI Meeting Takeaways

    EEI Meeting Takeaways Delivering on our Commitments:  PSEG has a 17-year track record of meeting or exceeding non-GAAP Operating Earnings guidance Current Guidance:  Narrowed 2022 Operating EPS Guidance to $3.40 – $3.50 per share  Reaffirmed 2022 – 2025 Operating EPS CAGR of 5% – 7% Looking Forwa

  17. Slide 17: Appendix

    x* PSEG Appendix

  18. Slide 18: PSEG 2022 and 2023 Guidance by Business

    PSEG 2022 and 2023 Guidance by Business Non-GAAP Operating Earnings Guidance Current Initial $ millions (except EPS) 2022E 2023E Guidance Guidance PSE&G $1,545 - $1,575 $1,490 - $1,540 CFIO $160 - $180 $185 - $235 Operating Earnings (non-GAAP) $1,705 - $1,755 $1,675 - $1,775 Operating EPS (non-GAAP)

  19. Slide 19: PSEG maintains a solid financial position

    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 = Stable PSEG 364-Day Term Loan Outst

  20. Slide 20: Pension is measured annually, at year-end

    Pension is measured annually, at year-end, in determining pension impact for the following year  PSEG does not “smooth” the year-end asset value, instead, ($ Millions) 2021 2020 we will apply our EROA assumption (7.2% for 2022) to the Fair Value of Plan Assets at year-end in determining pension Dis

  21. Slide 21: Q3 Year-to-Date 2022 Generation Measures & Hedge Update

    Q3 Year-to-Date 2022 Generation Measures & Hedge Update Nuclear Generation Nine Months ended Year ended Measures September 30 December 31 Carbon-Free Contracted Energy Sales* Oct – Dec 2022 2021 2021 2023E 2024E 2022E Capacity Factor 94.3% 93.0% 91.9% Fuel Nuclear Nuclear Nuclear Fuel Cost ($ millio

  22. Slide 22: Glossary of Terms

    Glossary of Terms AFUDC Allowance for Funds Used During Construction GSMP Gas System Modernization Program AMI Automated Metering Infrastructure IAP Infrastructure Advancement Program ARO Asset Retirement Obligations IRA Inflation Reduction Act BPU New Jersey Board of Public Utilities ITC Investment

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