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

  1. Slide 1: 2021 Investor Conference

    Public Service Enterprise Group 2021 Investor Conference A sustainable, predictable growth platform NYSE TICKER: PEG September 27, 2021

  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: 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

  5. 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

  6. 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

  7. 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

  8. 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.

  9. 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

  10. 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,

  11. 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

  12. 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

  13. 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

  14. 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

  15. 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

  16. 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

  17. 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

  18. 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

  19. 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

  20. 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

  21. 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

  22. 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

  23. 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

  24. 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

  25. 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

  26. 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

  27. 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

  28. 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

  29. 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

  30. 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

  31. 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

  32. 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

  33. 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

  34. 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

  35. 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

  36. 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

  37. 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

  38. 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

  39. 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

  40. 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

  41. 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

  42. 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

  43. 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

  44. 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

  45. 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

  46. 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

  47. 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

  48. 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

  49. 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

  50. 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

  51. 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

  52. 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

  53. 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

  54. 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

  55. 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

  56. 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

  57. 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

  58. 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

  59. 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

  60. 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

  61. 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

  62. 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

  63. 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

  64. 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

  65. 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

  66. 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

  67. 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

  68. 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

  69. Slide 69: Appendix

    * PSEG Appendix 69

  70. 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 $

  71. 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

  72. 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

  73. 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

  74. 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

  75. 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

  76. 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

  77. 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

  78. 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 $

  79. 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