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Here are 1-3 brief analogies for Public Service Enterprise (PEG):

• It's like your local water company, but for electricity and natural gas.
• Think of it as a regional Comcast or Verizon, but for power and natural gas delivery.

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• Electricity Transmission: The company transmits high-voltage electricity across its extensive network.
• Electricity Distribution: The company distributes electricity to residential, commercial, and industrial customers.
• Gas Distribution: The company distributes natural gas to residential, commercial, and industrial customers.
• Energy Efficiency Programs: The company offers programs designed to help customers reduce energy consumption.
• Appliance Services and Repairs: The company provides maintenance and repair services for customer appliances.

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Public Service Enterprise Group (symbol: PEG) primarily serves individual and organizational end-users directly.

Its customer categories include:

• Residential customers
• Commercial customers
• Industrial customers

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Ralph A. LaRossa, Chair, President and Chief Executive Officer

Ralph A. LaRossa was appointed CEO of Public Service Enterprise Group (PSEG) in September 2022 and Chair in January 2023. He has been with PSEG for several decades, holding various key leadership positions. Previously, he served as Chief Operating Officer of PSEG from January 2020 to August 2022 and as President and COO of PSEG Power from June 2017 to August 2022. In his role as PSEG COO, he was responsible for overseeing all of the operating businesses of PSEG. Mr. LaRossa is a seasoned utility executive with a strong background in operations and leadership within the energy sector. He holds a Bachelor of Science degree in mechanical engineering from Stevens Institute of Technology.

Daniel J. Cregg, Executive Vice President and Chief Financial Officer

Daniel J. Cregg has served as Executive Vice President and Chief Financial Officer for Public Service Enterprise Group and its subsidiaries since October 2015. He is responsible for all financial functions, including Investor Relations, Planning, Strategy, Corporate Development, and Commercial Operations. Mr. Cregg joined PSEG in 1991 and has held various executive positions within the company. Prior to joining PSEG, he spent five years with the accounting and consulting firm of Deloitte and Touche, with an emphasis on the utility sector. He holds an MBA from the Wharton School of the University of Pennsylvania and a bachelor's degree in accounting from Lehigh University. NJBIZ named Mr. Cregg 2018 CFO of the Year for public companies.

Tamara L. Linde, Executive Vice President and Chief Legal Officer

Tamara L. Linde is the Executive Vice President and Chief Legal Officer for PSEG, a position she has held since July 2014. She oversees all legal matters and is responsible for the overall legal and regulatory strategy, as well as the Company's Office of Corporate Secretary, Compliance, and Claims functions. Ms. Linde joined PSEG's law department in 1990 and has over 30 years of experience in energy, regulatory, legal, risk, environmental, and governmental affairs. She earned her Juris Doctorate and a Bachelor of Arts degree from Seton Hall University.

Kim C. Hanemann, President and Chief Operating Officer, PSE&G

Kim C. Hanemann is the President and Chief Operating Officer of Public Service Electric & Gas Company (PSE&G), PSEG's largest subsidiary. She is a member of PSEG's Senior Executive Team. Ms. Hanemann previously served as PSE&G's Senior Vice President and Chief Operating Officer. She holds a bachelor's degree in mechanical engineering from Lehigh University and a Master of Business Administration from the Rutgers Graduate School of Management.

Charles V. (Chaz) McFeaters, President and Chief Nuclear Officer, PSEG Nuclear LLC

Charles V. (Chaz) McFeaters was appointed President and Chief Nuclear Officer of PSEG Nuclear effective May 2023. In this role, he is responsible for overseeing the safe and reliable operations of the PSEG Nuclear Fleet, which includes the Hope Creek and Salem nuclear generating stations.

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1. Regulatory and Political Risk in New Jersey: A significant portion of Public Service Enterprise Group's operating income is derived from its regulated utility segment, PSE&G. This makes the company highly susceptible to changes in regulatory and political landscapes, particularly in New Jersey. Potential risks include proposed utility rate freezes and the possibility of a lower Return on Equity (ROE) for PSE&G's regulated assets, as indicated by recent discussions around New Jersey's Governor-elect's energy plan. The upcoming New Jersey Governor election also creates uncertainty, as utility costs have become a central election issue, potentially leading to shifts in policy priorities that could impact PEG's operations and financial performance. Furthermore, the timing of regulatory and legislative approvals for critical capital investments, such as gas and nuclear procurement bills, could limit the company's projected returns. The company is also subject to scrutiny and potential penalties from federal regulators, as evidenced by a $6.6 million fine from the Federal Energy Regulatory Commission (FERC) for misreporting transmission needs and ongoing challenges to cost recovery for transmission projects.
2. Climate Change and Extreme Weather Events: Public Service Enterprise Group's infrastructure and operations are exposed to the increasing risks of extreme weather and climate change. The company has acknowledged the mounting challenges posed by events such as severe storms, floods, extreme heat, cold temperatures, heavy precipitation, high winds, and ice. These events can threaten the electrical system, lead to increased operational costs, and necessitate substantial investments in infrastructure resilience. Beyond physical impacts, the company also faces financial and transition risks related to climate change, including potential increases in legislative and regulatory burdens, evolving customer preferences towards cleaner energy, and the risk of climate change-related lawsuits.
3. Volatility in PSEG Power (Deregulated Nuclear Generation) Segment: The PSEG Power segment, which includes the company's deregulated nuclear generation fleet, introduces an element of volatility to Public Service Enterprise Group's financial performance. This volatility primarily stems from non-trading Mark-To-Market (MTM) gains and losses on its commodity positions and, to a lesser extent, from securities held in its Nuclear Decommissioning Trust (NDT). The viability of nuclear power can also be questioned by policymakers and regulators in the event of a publicized accident or near-accident at a nuclear plant, which could significantly impact this segment. Additional risks include increased nuclear fuel storage costs, compliance with environmental regulations such as the Clean Water Act, and fluctuations in wholesale power and natural gas markets that can affect the economic viability of its generation units.

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Public Service Enterprise (PEG) Addressable Market Sizes

Electricity Distribution

Natural Gas Distribution

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Public Service Enterprise Group (PEG) anticipates several key drivers for future revenue growth over the next 2-3 years, primarily stemming from substantial regulated investments and strategic alignment with clean energy initiatives.

Here are the expected drivers of future revenue growth:

1. Significant Regulated Capital Investments and Rate Base Growth: PSEG has outlined a robust capital investment plan, with $24 billion to $28 billion allocated for 2026-2030, and over 90% of this directed towards regulated investments. These investments are focused on upgrading and modernizing electric transmission and distribution infrastructure, enhancing grid reliability and resilience, and supporting a projected compound annual growth rate (CAGR) in its rate base of 6% to 7.5% through 2030. This expanding rate base is a primary engine for regulated earnings and, consequently, revenue growth.
2. Expansion of Clean Energy Programs and Energy Efficiency Initiatives: The company is heavily investing in clean energy solutions and energy efficiency programs, aligning with New Jersey's clean energy goals and PSEG's commitment to achieving net-zero carbon emissions by 2030. These initiatives include investments in solar generation projects, infrastructure for electric vehicle charging, battery storage, and comprehensive energy efficiency offerings that help customers reduce energy consumption and costs. These programs contribute to rate base growth and represent an expanding segment of their service offerings.
3. Increased Customer Demand, Particularly from Data Centers: PSEG expects revenue growth driven by increased customer connections and significant load growth, especially from data centers. This growing demand for electricity and gas directly translates into higher sales volumes and increased revenue. The company's updated capital plan, including an additional $1.5 billion in spending, is partly driven by new customer connections and reliability upgrades to support this demand.
4. Favorable Regulatory Outcomes, Including New Distribution Rates and Clause-Based Cost Recoveries: Revenue growth is also supported by the implementation of new electric and gas base distribution rates and clause-based recoveries for investments. These regulatory mechanisms allow PSEG to recover costs and earn a return on its approved investments in infrastructure and energy efficiency programs, contributing directly to utility margin and overall revenue.

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Capital Allocation Decisions (Last 3-5 Years)

Share Issuance

• Public Service Enterprise Group's capital investment plans for 2024-2028, 2025-2029, and 2026-2030 are structured to be funded without the need for new equity issuance or asset sales.

Outbound Investments

• In 2022, Public Service Enterprise Group divested 6,750 megawatts of fossil generation as part of a strategic alternatives process to enhance its focus on infrastructure and clean energy investments.

Capital Expenditures

• Public Service Enterprise Group has significantly increased its capital spending plans, with the regulated 5-year capital investment plan for 2026-2030 now ranging from $22.5 billion to $25.5 billion, an increase of $1.5 billion over previous plans. The total capital program for 2026-2030 is projected between $24 billion and $28 billion.
• Planned regulated investments for 2026 are expected to be approximately $4.2 billion, representing a 13.5% increase from 2025's estimated $3.7 billion. Annual capital expenditures were $3.325 billion in 2023, $3.38 billion in 2024, and $3.272 billion in 2025.
• The primary focus of these capital expenditures is on infrastructure modernization, enhancing electric reliability and system resilience, meeting growing customer demand (including from data centers), and advancing clean energy initiatives such as solar, energy efficiency, electrification, and upgrades to nuclear facilities.