New 2019 PSEG Investor Fact Book · 2019. 11. 25. · Investor Relations [email protected]...

2019 PSEG Investor Fact Book

NYSE: PEG • NYSE: PEG • NYSE: PEG • NYSE: PEG • NYSE: PEG • NYSE: PEG •

Updated: November 25, 2019

2

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 “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ materially from those anticipated. Such statements are based on management’s beliefs as well as assumptions made by and information currently available to management. When used herein, the words “anticipate,” “intend,” “estimate,” “believe,” “expect,” “plan,” “should,” “hypothetical,” “potential,” “forecast,” “project,” variations of such words and similar expressionsare intended to identify forward-looking statements. Factors that may cause actual results to differ are often presented with the forward-looking statements themselves. Other factors that could cause actual results to differ materially from those contemplated in any forward- looking statements made by us herein are discussed in filings we make with the United States Securities and Exchange Commission (SEC), including our 2018 Annual Report on Form 10-K and subsequent reports on Form 10-Q and Form 8-K. These factors include, but are not limited to:

All of the forward-looking statements made in this presentation are qualified by these cautionary statements and we cannot assure you that the results or developments anticipated by management will be realized or even if realized, will have the expected consequences to, or effects on, us or our business, prospects, financial condition, results of operations or cash flows. Readers are cautioned not to place undue reliance on these forward-looking statements in making any investment decision. Forward-looking statements made in this presentation apply only as of the date of this presentation. While we may elect to update forward-looking statements from time to time, we specifically disclaim any obligation to do so, even in light ofnew information or future events, unless otherwise required by applicable securities laws.

The forward-looking statements contained in this presentation are intended to qualify for the safe harbor provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.

• fluctuations in wholesale power and natural gas markets,

including the potential impacts on the economic viability of our

generation units;

• our ability to obtain adequate fuel supply;

• any inability to manage our energy obligations with available

supply;

• PSE&G’s proposed investment programs may not be fully

approved by regulators and its capital investment may be lower

than planned;

• increases in competition in wholesale energy and capacity

markets;

• changes in technology related to energy generation, distribution

and consumption and customer usage patterns;

• economic downturns;

• third-party credit risk relating to our sale of generation output and

purchase of fuel;

• adverse performance of our decommissioning and defined

benefit plan trust fund investments and changes in funding

requirements;

• changes in state and federal legislation and regulations, and

PSE&G’s ability to recover costs and earn returns on authorized

investments;

• the impact of any future rate proceedings;

• risks associated with our ownership and operation of nuclear

facilities, including regulatory risks, such as compliance with the

Atomic Energy Act and trade control, environmental and other

regulations, as well as financial, environmental and health and

safety risks;

• the impact on our New Jersey nuclear plants if such plants are

not selected to participate in future Zero Emission Certificate

(ZEC) programs, ZEC programs are overturned or modified

through legal proceedings or if adverse changes are made to the

capacity market construct;

• adverse changes in energy industry laws, policies and

regulations, including market structures and transmission

planning;

• changes in federal and state environmental regulations and

enforcement;

• delays in receipt of, or an inability to receive, necessary licenses

and permits;

• adverse outcomes of any legal, regulatory or other proceeding,

settlement, investigation or claim applicable to us and/or the

energy industry;

• changes in tax laws and regulations;

• the impact of our holding company structure on our ability to

meet our corporate funding needs, service debt and pay

dividends;

• lack of growth or slower growth in the number of customers or

changes in customer demand;

• any inability of PSEG Power to meet its commitments under

forward sale obligations;

• reliance on transmission facilities that we do not own or control

and the impact on our ability to maintain adequate transmission

capacity;

• any inability to successfully develop, obtain regulatory approval

for, or construct generation, transmission and distribution

projects;

• any equipment failures, accidents, severe weather events or

other incidents that impact our ability to provide safe and reliable

service to our customers;

• our inability to exercise control over the operations of generation

facilities in which we do not maintain a controlling interest;

• any inability to recover the carrying amount of our long-lived

assets and leveraged leases;

• any inability to maintain sufficient liquidity;

• any inability to realize anticipated tax benefits or retain tax

credits;

• challenges associated with recruitment and/or retention of key

executives and a qualified workforce;

• the impact of our covenants in our debt instruments on our

operations; and

• the impact of acts of terrorism, cybersecurity attacks or

intrusions.

PSEG SHAREHOLDER SERVICES

PSEG common stock is listed on the New York Stock Exchange and trades under the trading symbol PEG.

EQ Shareowner Services (EQSS) serves as PSEG’s Transfer Agent, Registrar and Dividend Disbursing Agent for

its common stock.

EQ‘s website, www.shareowneronline.com, offers downloadable forms, answers to FAQs, online access and

transaction processing to shareholders. EQ Shareholder Service representatives can be reached at

800-242-0813 between the hours of 8 a.m. and 8 p.m. Eastern time Monday through Friday. An Interactive

Voice Response System (IVR) is available 24 hours a day, every day.

H I S T O R I C A L F I N A N C I A L O V E R V I E W & I R C O N T A C T I N F O

This document is prepared once a year, and updated periodically, and is available online here. This Fact Book is

intended to be used in conjunction with the annual report and other SEC filings to assist in detailed financial

analysis. While this document does include abbreviated financial statements, it is not and is not intended to be a

substitute for the more detailed financial statements (including footnotes) found in the Annual Report and other

SEC filings.

This summary is not intended for use in connection with any sale, offer to sell, or solicitation of any offer to

buy securities. Inquiries concerning this summary should be directed to:

PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED

INVESTOR RELATIONS

80 PARK PLAZA

NEWARK, NJ 07102

CARLOTTA CHAN BRIAN REIGHN CATHERINE GOLDASenior Director

Investor Relations

[email protected]

Manager

Investor Relations

[email protected]

Administrative Assistant

Investor Relations

[email protected]

TO FOLLOW & CONNECT WITH PSEG VIA SOCIAL MEDIA, CLICK ON THE LINKS BELOW

2018

ANNUAL REPORT

We invite you to review PSEG’s 2018 Annual Report and our otherSEC filings online at I N V E S T O R . P S E G . C O M / S E C - F I L I N G S

3

Investor Relations Links:

Current Regulatory Activity

ESG Disclosures

Sustainability Report

Powering Progress

Fact Sheets

http://www.shareowneronline.com/https://investor.pseg.com/sites/pseg.investorhq.businesswire.com/files/doc_library/file/FACBOOK-19mailto:[email protected]:[email protected]:[email protected]://investor.pseg.com/sec-filingshttps://investor.pseg.com/current-regulatory-activityhttps://investor.pseg.com/pseg-esg-disclosureshttps://corporate.pseg.com/corporatecitizenship/sustainabilityhttps://www.psegpoweringprogress.com/https://investor.pseg.com/ir-fact-sheetshttps://www.facebook.com/PSEGhttps://twitter.com/PSEGnewshttps://www.linkedin.com/company/165586?trk=tyah&trkInfo=tarId:1422278775327,tas:PSEG,idx:2-1-4https://www.youtube.com/user/PSEGvideohttp://energizepseg.com/

G AAP D ISCLAIMER

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 is a non-GAAP financial measure

that differs from Net Income. Non-GAAP Operating Earnings exclude the impact of returns (losses) associated

with the Nuclear Decommissioning Trust (NDT), Mark-to-Market (MTM) accounting and material one-time items.

Additional Financial information at the end of this presentation includes a list of items excluded from Net

Income/(Loss) to reconcile to non-GAAP Operating Earnings with a reference to those pages included on each

of the pages where the non-GAAP information appears.

Management uses non-GAAP Operating Earnings in its internal analysis, and in communications with investors

and analysts, as a consistent measure for comparing PSEG’s financial performance to previous financial

results. The presentation of non-GAAP Operating Earnings is intended to complement, and should not be

considered an alternative to, the presentation of Net Income, which is an indicator of financial performance

determined in accordance with GAAP. In addition, non-GAAP Operating Earnings, as presented herein, may not

be comparable to similarly titled measures used by other companies.

These materials and other financial releases can be found on the PSEG website at https://investor.pseg.com. From time

to time, PSEG, PSE&G and PSEG Power release important information via postings on their corporate website at

https://investor.pseg.com. Investors and other interested parties are encouraged to visit the corporate website to review

new postings. The “Email Alerts” link at https://investor.pseg.com may be used to enroll to receive automatic email

alerts.

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https://investor.pseg.com/https://investor.pseg.com/https://investor.pseg.com/

PSE&G PSEG Power PSEG LI Services

Non-Union 2,003 1,057 899 1,041

Union 5,315 1,065 1,510 255

Total Employees 7,318 2,122 2,409 1,296

PSEG EMPLOYEES

As of 12/31/2018

PSEG had 13,145

employees within

our subsidiaries –

including 8,145

covered under

collective bargaining

agreements

PSEGPublicServiceEnterpriseGroup NYSE: PEG

PUBLIC SERVICE ENTERPRISE GROUP ORGANIZATION CHART

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OPERATING COMPANIES ARE PSE&G, PSEG POWER AND PSEG LONG ISLAND

TABLE of Contents

FORWARD–LOOKING STATEMENTS

SHAREHOLDER SERVICES, IR CONTACTS & SOCIAL MEDIA LINKS

GAAP DISCLAIMER

PSEG EMPLOYEES; PSEG ORGANIZATION CHART

PUBLIC SERVICE ENTERPRISE GROUP

PSEG Financial Highlights

PSEG Financial Statements

PSEG Common Stock and Dividend Data

PSEG Board Of Directors

PSEG Executive Officers

PUBLIC SERVICE ELECTRIC AND GAS COMPANY

Service Territory and Statistics

Electric — Revenues, Sales and Customers

Gas — Revenues, Sales and Customers

2019E-2023E Planned Capital Investment Program

Projected Rate Base 2018-2023E

PSE&G Transmission Programs

Energy Strong II Program

Clean Energy Future

Current Energy Efficiency Programs

PSE&G Gas Distribution & GSMP Investment Program

PSE&G Utility-Scale Solar and Energy Efficiency Programs

PSE&G Operational Excellence: Safety & Reliability

PSE&G Operational Excellence: Customer Satisfaction

PSE&G Operational Excellence: O&M Controls

PSE&G Typical Residential Customer Bills; Rate Comparisons

PSE&G NJ Distribution Base Rate Case Result

PSE&G Financial Statements

New Jersey Board of Public Utilities Commission Members

Federal Energy Regulatory Commission Members

PSE&G Executive

2

3

4

5

9

10

11-14

15

16

17

19

20

21

22

23

23

24

25

25

26

27

28

29

29

30

30

31

32-35

36

37

37

PSEG LONG ISLAND & PSEG LONG ISLAND EXECUTIVES

PSEG POWER

Plant Locations, Portfolio Transformation Time Line

Portfolio Transmission Timeline

PSEG Power Generating Facilities

Fuel Diversity and Energy Produced 2018-2021E

PSEG Power Capital Spending Projections 2016-2023E

PSEG Power CCGT Construction Program Summary

PSEG Power’s Fleet Carbon Emission Intensity

Portfolio Transformation Impact on PSEG Power’s Fleet

PSEG Power Combined Cycle and Peaking Unit Details

Natural Gas Sources, Assets and Access

ZEC Process; PSEG Power Nuclear Generating Stations

Generation Measures

Capacity Factors

BGS Auction Information

PJM Reliability Pricing Model

PJM and ISO-NE Capacity Auction Pricing

Solar Source Portfolio

Financial Statements

PSEG Power Executives; PSEG Power Glossary of Terms

PSEG — ADDITIONAL FINANCIAL INFORMATION

PSEG Growth Strategy

2019E-2023E Proposed PSE&G Capital Program

Common Dividend 2014-2019E

PSEG Powering Progress

Reconciliations of Non-GAAP Operating Earnings

PSEG Sustainability

38-39

41

42

42

43

44

44

45

46

46

47

47

48

49

50

51

51

52

52

53-56

57

59

60

60

61

61

62-63

64

THE PSEG VISION

Being a recognized leader

for:

PEOPLE PROVIDING

SAFE, RELIABLE,

ECONOMIC AND

GREENER ENERGY

8

Public Service Enterprise Group (PSEG) is a publicly traded (NYSE: PEG) diversified

energy company headquartered in New Jersey, and one

of the ten largest electric companies in the U.S.

● Total assets (as of December 31, 2018): $45.3 billion

● 2018 total annual revenues: $9.7 billion

● Employees: 13,145 Employees as of December 31, 2018

● PSEG celebrated its 115th anniversary in 2018

● PSEG has paid a dividend annually since 1907, 2019 marks our 112th year

● PSEG is ranked 504 on the 2019 Forbes Global 2000 list

● PSEG is ranked 323 on the 2019 Fortune 500 list

● PSEG was named to the Dow Jones Sustainability North America Index for the

12th consecutive year in 2019

● PSEG was named to the Forbes JUST 100 for 2020 by Forbes and JUST Capital

● PSEG expects to cut PSEG Power’s fleet carbon emissions by 80% by 2046, from

2005 levels

● PSEG’s vision is to attain net-zero carbon emission by 2050 assuming advances

in technology and public policy

● PSEG Power generates >90% of New Jersey’s carbon free energy

● PSEG has invested approximately $1.7 billion in the development of solar energy

● PSEG is a proud sponsor of several sustainability and STEM programs including

Montclair State’s Institute for Sustainability Studies; the Andlinger Center for

Energy & the Environment at Princeton; and the Stevens Institute of Technology’s

SURE House

● PSEG’s principal operating subsidiaries are:

Public Service Electric & Gas Company (PSE&G),

PSEG Power LLC (PSEG Power) and

PSEG Long Island LLC

PSEG Public Service Enterprise Group

9

PSEG FINANCIAL HIGHLIGHTS (UNAUDITED)

We are determined to be a leader in our industry through our commitment to operational excellence,

financial strength and disciplined investment.

PSEGPublicServiceEnterpriseGroup NYSE: PEGPSEGPublicServiceEnterpriseGroup NYSE: PEG

*SEE ITEMS EXCLUDED FROM NET INCOME/(LOSS) TO RECONCILE TO NON-GAAP OPERATING EARNINGS ON PAGES 62 AND 63.

10


CONSOLIDATED STATEMENTS OF OPERATIONS

Millions, except per share data

Years Ended December 31,

2018 2017 2016

OPERATING REVENUES $ 9,696 $ 9,094 $ 8,966

OPERATING EXPENSES

Energy Costs 3,225 2,778 2,901

Operation and Maintenance 3,015 2,901 2,991

Depreciation and Amortization 1,158 1,986 1,476

Total Operating Expenses 7,398 7,665 7,368

OPERATING INCOME 2,298 1,429 1,598

Income from Equity Method Investments 15 14 11

Net Gains (Losses) on Trust Investments (143 ) 134 (6 )

Other Income (Deductions) 85 82 102

Non-Operating Pension and OPEB Credits (Costs) 76 — (22 )

Interest Expense (476 ) (391 ) (385 )

INCOME BEFORE INCOME TAXES 1,855 1,268 1,298

Income Tax Benefit (Expense) (417 ) 306 (411 )

NET INCOME $ 1,438 $ 1,574 $ 887

WEIGHTED AVERAGE COMMON SHARES

OUTSTANDING:

BASIC 504 505 505

DILUTED 507 507 508

NET INCOME PER SHARE:

BASIC $ 2.85 $ 3.12 $ 1.76

DILUTED $ 2.83 $ 3.10 $ 1.75

See Notes to Consolidated Financial Statements in PSEG Annual 10-K Report.

PSEG CONSOLIDATED STATEMENTS OF OPERATIONS

NYSE: PEGPSEGPublicServiceEnterpriseGroup NYSE: PEG

11

PSEG CONSOLIDATED BALANCE SHEETS


12


CONSOLIDATED BALANCE SHEETS

Millions

December 31,

2018 2017

ASSETS

CURRENT ASSETS

Cash and Cash Equivalents $ 177 $ 313

Accounts Receivable, net of allowances of $63 in 2018 and $59 in 2017 1,435 1,348

Tax Receivable 242 127

Unbilled Revenues 240 296

Fuel 331 289

Materials and Supplies, net 571 577

Prepayments 94 118

Derivative Contracts 11 29

Regulatory Assets 389 211

Other 17 4

Total Current Assets 3,507 3,312

PROPERTY, PLANT AND EQUIPMENT 44,201 41,231

Less: Accumulated Depreciation and Amortization (9,838 ) (9,434 )

Net Property, Plant and Equipment 34,363 31,797

NONCURRENT ASSETS

Regulatory Assets 3,399 3,222

Long-Term Investments 896 932

Nuclear Decommissioning Trust (NDT) Fund 1,878 2,133

Long-Term Receivable of VIEs 624 686

Rabbi Trust Fund 224 231

Goodwill 16 16

Other Intangibles 143 114


Other 275 266

Total Noncurrent Assets 7,456 7,607

TOTAL ASSETS $ 45,326 $ 42,716


PSEG CONSOLIDATED BALANCE SHEETS -- CONTINUED


13



Millions

December 31,

2018 2017

LIABILITIES AND CAPITALIZATION CURRENT LIABILITIES

Long-Term Debt Due Within One Year $ 1,294 $ 1,000

Commercial Paper and Loans 1,016 542

Accounts Payable 1,451 1,694


Accrued Interest 110 103

Accrued Taxes 26 48

Clean Energy Program 143 128

Obligation to Return Cash Collateral 136 129

Regulatory Liabilities 311 47

Other 437 461

Total Current Liabilities 4,935 4,168

NONCURRENT LIABILITIES

Deferred Income Taxes and Investment Tax Credits (ITC) 5,713 5,240

Regulatory Liabilities 3,221 2,948

Asset Retirement Obligations 1,063 1,024

Other Postretirement Benefit (OPEB) Costs 704 1,455

OPEB Costs of Servco 501 542

Accrued Pension Costs 791 537

Accrued Pension Costs of Servco 109 129

Environmental Costs 327 357


Long-Term Accrued Taxes 181 175

Other 232 221

Total Noncurrent Liabilities 12,846 12,633

COMMITMENTS AND CONTINGENT LIABILITIES CAPITALIZATION

LONG-TERM DEBT

13,168 12,068

STOCKHOLDERS’ EQUITY Common Stock, no par, authorized 1,000 shares; issued, 2018 and 2017—

534 shares 4,980

4,961

Treasury Stock, at cost, 2018—30 shares; 2017—29 shares (808 ) (763 )

Retained Earnings 10,582 9,878

Accumulated Other Comprehensive Loss (377 ) (229 )

Total Stockholders’ Equity 14,377 13,847

Total Capitalization 27,545 25,915

TOTAL LIABILITIES AND CAPITALIZATION $ 45,326 $ 42,716


PSEG CONSOLIDATED STATEMENTS OF CASH FLOWS


14

1


CONSOLIDATED STATEMENTS OF CASH FLOWS

Millions


2018 2017 2016

CASH FLOWS FROM OPERATING ACTIVITIES

Net Income $ 1,438 $ 1,574 $ 887

Adjustments to Reconcile Net Income to Net Cash Flows from Operating Activities:

Depreciation and Amortization 1,158 1,986 1,476

Amortization of Nuclear Fuel 187 199 203

Emission Allowances and Renewable Energy Credit (REC) Compliance Accrual 97 103 109

Impairment Costs for Early Plant Retirements — — 102

Provision for Deferred Income Taxes (Other than Leases) and ITC 568 (167 ) 474

Non-Cash Employee Benefit Plan Costs 70 89 127

Leveraged Lease Income, Adjusted for Rents Received and Deferred Taxes (149 ) (159 ) (6 )

Gain on Sale of Hudson and Mercer Units (54 ) — —

Net (Gain) Loss on Lease Investments 5 48 92

Net Realized and Unrealized (Gains) Losses on Energy Contracts and Other

Derivatives

116

188

183

Net Change in Regulatory Assets and Liabilities (153 ) (188 ) (138 )

Cost of Removal (160 ) (107 ) (131 )

Net (Gains) Losses and (Income) Expense from NDT Fund 98 (156 ) (26 )

Net Change in Certain Current Assets and Liabilities

Tax Receivable 17 65 303

Accrued Taxes (69 ) 16 3

Margin Deposit (247 ) (90 ) (76 )

Other Current Assets and Liabilities 70 (72 ) (179 )

Employee Benefit Plan Funding and Related Payments (101 ) (81 ) (103 )

Other 22 12 13

Net Cash Provided By (Used In) Operating Activities 2,913 3,260 3,313

CASH FLOWS FROM INVESTING ACTIVITIES

Additions to Property, Plant and Equipment (3,912 ) (4,190 ) (4,199 )

Purchase of Emissions Allowances and RECs (146 ) (117 ) (99 )

Proceeds from Sales of Trust Investments 1,501 2,319 824

Purchases of Trust Investments (1,473 ) (2,340 ) (856 )

Other 114 72 82

Net Cash Provided By (Used In) Investing Activities (3,916 ) (4,256 ) (4,248 )

CASH FLOWS FROM FINANCING ACTIVITIES

Net Change in Commercial Paper and Loans 474 154 24

Issuance of Long-Term Debt 2,750 2,175 2,675

Redemption of Long-Term Debt (1,350 ) (500 ) (824 )

Cash Dividends Paid on Common Stock (910 ) (870 ) (830 )

Other (77 ) (74 ) (79 )

Net Cash Provided By (Used In) Financing Activities 887 885 966

Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash (116 ) (111 ) 31

Cash, Cash Equivalents and Restricted Cash at Beginning of Period 315 426 395

Cash, Cash Equivalents and Restricted Cash at End of Period $ 199 $ 315 $ 426

Supplemental Disclosure of Cash Flow Information:

Income Taxes Paid (Received) $ 99 $ (8 ) $ (245 )

Interest Paid, Net of Amounts Capitalized $ 454 $ 377 $ 365

Accrued Property, Plant and Equipment Expenditures $ 517 $ 722 $ 664


2013 2014 2015 2016 2017 2018

PSEG $ 100.00 $ 134.36 $ 130.62 $ 153.85 $ 187.34 $ 196.09

S&P 500 $ 100.00 $ 113.68 $ 115.24 $ 129.02 $ 157.17 $ 150.27

DJ Utilities $ 100.00 $ 130.65 $ 126.65 $ 149.67 $ 169.65 $ 173.01

S&P Electrics $ 100.00 $ 128.98 $ 122.73 $ 142.72 $ 160.00 $ 166.57

PSEG COMMON STOCK AND DIVIDEND DATA

PSEGPublicServiceEnterpriseGroup

Common Stock High Low

Dividend

Per Share

2019

First Quarter $ 60.09 $ 49.97 $ 0.47

Second Quarter $ 61.63 $ 57.50 $ 0.47

Third Quarter $ 62.60 $ 55.27 $ 0.47

2018

First Quarter $ 51.95 $ 46.19 $ 0.45

Second Quarter $ 54.50 $ 49.02 $ 0.45

Third Quarter $ 54.35 $ 50.01 $ 0.45

Fourth Quarter $ 56.68 $ 49.23 $ 0.45

The following table indicates the high and low sale prices for our common stock and dividends paid for the periods

indicated:

The graph and table below show a comparison of the five-year cumulative return assuming $100 invested on

December 31, 2013 in PSEG common stock and the subsequent reinvestment of quarterly dividends, the S&P

Composite Stock Price Index, the Dow Jones Utility Index and the S&P Electric Utilities Index.

NYSE: PEG

15


SHIRLEY ANN

JACKSON

LEAD DIRECTOR

PRESIDENT -

RENSSELAER

POLYTECHNIC

INSTITUTE

DAVID

LILLEY

RETIRED CHAIRMAN OF

THE BOARD, PRESIDENT

AND CHIEF EXECUTIVE

OFFICER – CYTEC

INDUSTRIES, INC.

BOARD OF DIRECTORS

SUSAN

TOMASKY

RETIRED

PRESIDENT - AEP

TRANSMISSION

– AMERICAN

ELECTRIC POWER

CORPORATION


BARRY H.

OSTROWSKY

PRESIDENT AND

CHIEF EXECUTIVE

OFFICER –

RWJBARNABAS

HEALTH

RALPH

IZZO

CHAIRMAN OF THE

BOARD, PRESIDENT

AND CHIEF

EXECUTIVE OFFICER

WILLIAM V.

HICKEY

RETIRED CHAIRMAN

AND CHIEF EXECUTIVE

OFFICER – SEALED

AIR CORPORATION

NYSE: PEG

WILLIE A.

DEESE

RETIRED EXECUTIVE

VICE PRESIDENT –

MERCK & CO INC.


LAURA A. SUGG

RETIRED

PRESIDENT –

AUSTRALASIA

DIVISION –

CONOCOPHILLLIPS

CORPORATION

RICHARD J.

SWIFT

RETIRED CHAIRMAN

OF THE BOARD,

PRESIDENT AND

CHIEF EXECUTIVE

OFFICER - FOSTER

WHEELER, LTD.

ALFRED W.

ZOLLAR

EXECUTIVE

PARTNER, SIRIS

CAPITAL GROUP,

LLC

16

JOHN P.

SURMA

RETIRED CHAIRMAN

OF THE BOARD AND

CHIEF EXECUTIVE

OFFICER – U.S. STEEL

CORPORATION

ELECTED TO BOARD

OF DIRECTORS

NOVEMBER 19, 2019

EXECUTIVE OFFICERS GROUP

17


TAMARA L.

LINDE

EXECUTIVE VICE

PRESIDENT AND

GENERAL COUNSEL

DANIEL J.

CREGG

EXECUTIVE VICE

PRESIDENT AND

CHIEF

FINANCIAL

OFFICER

DAVID M.

DALY

PRESIDENT AND

CHIEF OPERATING

OFFICER

PSE&G

DEREK M.

DIRISIO

PRESIDENT

PSEG SERVICES

CORPORATION

RALPH A.

LAROSSA

PRESIDENT AND

CHIEF OPERATING

OFFICER

PSEG POWER

MARGARET M.

PEGO

SENIOR VICE PRESIDENT

EXECUTIVE ADVISOR

RALPH

IZZO

CHAIRMAN OF THE

BOARD, PRESIDENT

AND CHIEF

EXECUTIVE OFFICER

SHAHID

MALIK

PRESIDENT

PSEG ENERGY

RESOURCES

& TRADE

RICHARD T.

THIGPEN


CORPORATE CITIZENSHIP

SCOTT S.

JENNINGS

SENIOR VICE

PRESIDENT

CORPORATE

PLANNING,

STRATEGY AND

UTILITY FINANCE

KIM C.

HANEMANN


PSE&G

ELECTRIC TRANSMISSION

& DISTRIBUTION

SHEILA

ROSTIAC


HUMAN RESOURCES AND

CHIEF HUMAN

RESOURCES OFFICER

Public Service Electric & Gas Company (PSE&G) is a regulated

public utility company engaged in the transmission and

distribution of gas and electricity. PSE&G is New Jersey’s

oldest and largest publicly-owned utility. The Public Service

Corporation was formed in 1903 by amalgamating more than

400 gas, electric and transportation companies in New

Jersey; it was renamed Public Service Electric and Gas

Company in 1948.

PSE&G currently serves nearly three quarters of New Jersey’s

population in a service area consisting of a 2,600-square-mile

diagonal corridor across the state from Bergen to Gloucester

Counties. PSE&G is the largest provider of gas and electric

service, servicing 1.8 million gas customers and 2.3 million

electric customers in more than 300 urban, suburban and

rural communities, including New Jersey’s six largest cities.

PSE&G invested $3 billion in 2018 capital expenditures to

upgrade, expand and enhance the reliability and resiliency of

its electric and gas Transmission and Distribution system.

ReliabilityOne has recognized PSE&G as the most reliable

electric utility in the Mid-Atlantic region for the 18th

consecutive year in 2019.

PSE&G PublicServiceElectric&Gas

19

PSE&GPublicServiceElectric&Gas

Electric and Gas Distribution and Solar Statistics

Transmission Statistics

2018 Sales Mix Residential Commercial Industrial2018 Peak

Load

Electric 33% 58% 9% 9,978 MW

Gas 58% 38% 4% --

SERVICE TERRITORY AND STATISTICS

PSE&G is the largest electric and gas distribution and transmission utility, the

largest investor in renewable and energy efficiency, and the largest HVAC and

service contract provider in New Jersey

● PSE&G has received the prestigious

ReliabilityOne Award for the Mid-Atlantic

region for 18 years in a row.

● Solid regulatory relationships on traditional

utility matters.

● New Jersey is ranked 4th nationally in

personal income per capita.1

1 2018 BUREAU OF ECONOMIC ANALYSIS REPORT

2 FERC ROE IS COMPRISED OF A BASE 11.18% PLUS A 0.50% ADDER FOR PARTICIPATION IN A REGIONAL TRANSMISSION ORGANIZATION (RTO). CERTAIN PSE&G PROJECTS ALSO HAVE

VARIOUS ROE ADDERS APPROVED BY THE FERC TO PROMOTE TRANSMISSION INFRASTRUCTURE DEVELOPMENT.

3 ESTIMATED ANNUAL GROWTH PER YEAR, ASSUMES NORMAL WEATHER

4 FIRM GAS SALES ONLY.

5 ANNUAL CUSTOMER GROWTH USES 2013 AS BASE YEAR

B = $ BILLION; E = ESTIMATE; M = MILLION; MW = MEGAWATTS

Network

Circuit Miles

Base Return on

Equity22018 YE

Rate Base

Electric

Transmission1,941 11.68% $8.7B

Network

Miles/Solar MW

Installed

Base Return

on Equity

2018 YE

Rate Base

Electric Distribution 22,468

9.6%

$10.0B

Gas Distribution 18,000

Solar & EE Assets 122MWDC $0.6B

Sales Statistics (All information is as of December 31, 2018)

Number of Customers

December 31, 2018

Electric Sales/

Gas Sold &

Transported

5-Year Annual

Customer Growth5

Electric 2.3 Million 41,899 GWh 0.7%

Gas 1.8 Million 2,630 M Therms4 0.6%

20

Electric Revenues ($Millions) 2018 2017 2016 2015 2014Rate of

Growth**

Residential$2,000 $1,910 $2,066 $2,178 $2,055 (0.8)%

Commercial & Industrial1,654 1,631 1,647 2,001 2,052 (4.0)%

Street Lighting70 68 68 71 69 0.0%

Other Operating Revenues*823 754 680 592 509 14.1%

Total Electric Revenues $4,547 $4,363 $4,461 $4,842 $4,685 (0.3)%

Electric Sales (Millions kWh) 2018 2017 2016 2015 2014Rate of

Growth**

Residential13,810 13,069 13,706 13,675 13,081 0.5%

Commercial & Industrial27,734 27,344 27,538 27,706 27,329 0.2%

Street Lighting345 327 336 334 327 0.9%

Interdepartmental10 9 10 10 10 2.1%

Total Electric Sales 41,899 40,749 41,590 41,725 40,747 0.3%

Electric Customers (Annual Avg) 2018 2017 2016 2015 2014Rate of

Growth**

Residential 1,947,910 1,928,244 1,913,176 1,901,076 1,889,338 0.7%

Commercial & Industrial 307,669 305,262 303,452 303,328 301,306 0.5%

Street Lighting 10,657 10,266 10,436 10,229 10,214 0.9%

Total Electric Customers 2,266,236 2,243,772 2,227,064 2,214,633 2,200,858 0.7%

*PRIMARILY SALES OF NON-UTILITY GENERATOR ENERGY TO PJM AND TRANSMISSION RELATED REVENUES.

**RATE OF GROWTH USES 2013 AS BASE.

NOTE: TOTALS MAY NOT SUM DUE TO ROUNDING.

PSE&G RETAIL REVENUES AND SALES – ELECTRIC (UNAUDITED)

Year Ended December 31,

21


Gas Revenues ($Millions) 2018 2017 2016 2015 2014Rate of

Growth****

Residential $379 $391 $362 $308 $491 (6.7)%

Commercial & Industrial - Firm 267 250 194 239 315 1.7%

Non-Firm Sales 26 25 27 34 41 (8.6)%

Other Operating Revenues* 179 175 174 174 172 1.0%

Total Revenues** $851 $841 $756 $755 $1,018 (3.0)%

Gas Transported** $1,073 $1,029 $1,004 $1,039 $1,064 0.4%

Sales (Million Therms) 2018 2017 2016 2015 2014Rate of

Growth****

Residential 1,532 1,407 1,394 1,497 1,572 1.2%

Commercial & Industrial-Firm 1,097 990 966 1,026 1,055 2.5%

Total Firm Sales 2,630 2,397 2,360 2,523 2,628 1.7%

Comm & Indus - Non-Firm Sales 1,252 1,170 1,888 2,054 2,467 (2.2)%

Total Sales*** 3,882 3,567 4,247 4,577 5,095 0.4%

Gas Customers (Annual Avg) 2018 2017 2016 2015 2014Rate of

Growth****

Residential 1,681,142 1,667,467 1,652,784 1,643,677 1,633,785 0.6%

Commercial 158,927 158,765 157,922 157,763 157,294 0.3%

Industrial 6,399 6,264 6,372 6,425 6,537 (0.7)%

Street Lighting 16 16 16 16 16 0.0%

Total Gas Customers 1,846,484 1,832,512 1,817,094 1,807,881 1,797,632 0.6%

* PRIMARILY APPLIANCE SERVICE.

** TOTAL REVENUES INCLUDE COMMODITY REVENUE FROM THE SALE OF GAS TO PSE&G’S BASIC GAS SUPPLY SERVICE (BGSS) CUSTOMERS AND

GAS TRANSPORTED FROM THE DISTRIBUTION OF GAS TO ALL RETAIL CUSTOMERS ON THE PSE&G SYSTEM.

***CSG RATE INCLUDED IN NON-FIRM SALES.

****RATE OF GROWTH USES 2013 AS BASE.

NOTE: TOTALS MAY NOT SUM DUE TO ROUNDING.

PSE&G RETAIL REVENUES AND SALES – GAS SOLD & TRANSPORTED(UNAUDITED)


22


PSE&G’S $12B - $14.5B INVESTMENT PROGRAM FOCUSED ON RELIABILITY, RESILIENCY

GRID MODERNIZATION AND CLEAN ENERGY

23

INVESTMENT PROGRAM PROVIDES OPPORTUNITY FOR

~7.5% - 8.5% COMPOUND ANNUAL RATE BASE GROWTH

INCLUDES AFUDC. HASHED PORTION OF THE CHART REPRESENTS CEF FILINGS. CEF FILINGS UPDATED TO REFLECT THE EXTENSION OF THE ENERGY EFFICIENCY PROCEDURAL SCHEDULE INTO 2020. NO CHANGE TO TOTAL FILING POSITION. E = ESTIMATE. CHART UPDATED JULY 30, 2019.

INCLUDES AFUDC. HASHED PORTION OF THE CHART REPRESENTS CEF FILINGS. CEF FILINGS UPDATED TO REFLECT THE EXTENSION OF THEENERGY EFFICIENCY PROCEDURAL SCHEDULE INTO 2020. NO CHANGE TO TOTAL FILING POSITION. E = ESTIMATE. CHART UPDATED JULY 30, 2019.CHART EXCLUDES CWIP. YEAR-END 2018 CWIP BALANCE WAS ~$1.2B.


TRANSMISSION: ~$5 BILLION INVESTMENT PROGRAM OVER 2019 - 2023 PERIOD FOCUSED

ON ENHANCING RELIABILITY AND RESILIENCY, AND REPLACING AGING INFRASTRUCTURE

24

PJM’s Regional Transmission Expansion

Plan (RTEP) identifies system

enhancements needed for reliability

• Reliability Criteria Violations:

upgrades to relieve network

overloads

• Transmission Hardening:

enhancements to system resiliency

• Transmission Lifecycle: asset end-

of-life replacements to maintain

system integrity

• 69kV System: upgrades for system

reliability and capacity for future load

growth


ENERGY STRONG II: RECENT SETTLEMENT CONTINUES CRITICAL

ENERGY INFRASTRUCTURE PROGRAM

25

CLEAN ENERGY FUTURE PROGRAM DESIGNED TO ACHIEVE THE GOALS OF CLEAN ENERGY ACT:

~$3.5 BILLION, 6 YEAR INVESTMENT PROGRAM FILED IN JANUARY 2019 PROVIDING

COST-EFFECTIVE AND INNOVATIVE SOLUTIONS SUPPORTING NJ’S CLEAN ENERGY GOALS

M&R=METERING & REGULATION


AMI=ADVANCED METERING INFRASTRUCTURE

26

PSE&G IS A NATIONAL LEADER IN ENERGY EFFICIENCY: $400M INVESTED TO DATE


GAS DISTRIBUTION INVESTMENTS

Gas System Modernization Program (GSMP) focused on modernizing and replacing cast iron and

unprotected steel main, resulting in a reduction in methane leaks

• GSMP I Program complete - replaced ~450 miles over 3 years for $905 Million

• GSMP II program provides for replacement of 875 miles over five years

$1.9 Billion investment began in 2019

$1.6 Billion recovered through clause

Improved terms, with semi-annual recovery

Creating 750 jobs

• Base capital and new business > $1 Billion over five years

GSMP I: $905 Million Investment over

3 year period

GSMP II: $1.9 Billion Investment over 5 year period beginning 2019

Clause based recoveryEnhances system safety

Better supports use of high efficiency appliances

Reduces methane emissions and leaks

Improves reliability

Gas System Modernization

Program

A multi-year Infrastructure Program

to replace old cast iron and unprotected steel pipes with strong, durable plastic pipe

Continuation of long-term, ~25-year replacement plan

WHAT IS GSMP?

27


28

PSE&G SOLAR AND ENERGY EFFICIENCY PROGRAMS SUPPORT NEW JERSEY POLICY OBJECTIVES

PSE&G’s solar and energy efficiency programs continue to create jobs, spur economic activity and help New Jersey meet its renewable energy goals. Our Clean Energy Future proposal would make critical investments in clean energy and advanced technology that would further New Jersey’s role as a national leader in energy efficiency and jump-start other clean energy priorities.

Our renewable energy initiatives have helped make New Jersey No. 7 in terms of installed solar generating capacity and PSE&G the No. 8 U.S. utility for cumulative solar megawatts. Through the utility’s Solar 4 All® Program, grid-connected solar developed on landfills and brownfields provides clean energy for all customers. Solar-storage projects reduce the impact that solar has on the grid and provide resiliency for several critical facilities during prolonged power outages.

Energy Efficiency – In addition to our Clean Energy Future proposal, PSE&G is continuing programs with a focus on hospitals, multi-family housing and our Energy Saver program, which includes municipalities, non-profits and small businesses in Urban Enterprise Zones. As of year-end 2018, PSE&G had invested more than $400 million in energy efficiency solutions, which has saved our customers more than 270 gigawatt hours (electric) and 9 million therms (gas). These energy efficiency savings are the equivalent of powering more than 35,000 homes with electricity for a year and supplying 9,000 homes with natural gas for a year.

Solar 4 All® is our 158-megawatt (MW) program that utilizes rooftops, solar farms, utility poles and landfills/brownfields for large-scale, grid-connected solar projects. The revenue PSE&G receives from the sale of solar energy, capacity, the sale of the solar credits (SRECs) and the federal investment tax credit (ITC) realized is returned to customers, offsetting the overall cost of the Solar 4 All® Program.

The Solar Loan program is the second piece of PSE&G’s solar development strategy. PSE&G’s program has made approximately $298 million of financing available through year-end 2018 to help homeowners and businesses develop nearly 1,500 installations (118 MW of solar capacity). The loans finance up to 70% of the total cost of the solar installation and are repaid using solar renewable energy credits (SRECs), which are generated by the solar installation.

Renewables

Program

2009-2018

In Service

Total MW

Program Plan

Total

Investment

Solar Loan I, II, III 118 MW 178 MW $298 Million

Solar 4 All, Extension &

Ext II

122 MW 158 MW $638 Million

ALL DATA AS OF YEAR-END 2018. ALL SOLAR MEGAWATTS (MW) ARE QUOTED IN MWDC.

$936

MillionInvested in

Solar

PSE&G INVESTMENTS IN SOLAR


OPERATIONAL EXCELLENCE: SAFETY & RELIABILITY

OPERATIONAL EXCELLENCE: CUSTOMER SATISFACTION

29


OPERATIONAL EXCELLENCE: SUCCESSFULLY MANAGING O&M COSTS

CUSTOMER BILLS WILL REMAIN IN LINE WITH INFLATION, EVEN WITH INCLUSION OF OUR

ACTIVE AND PROPOSED PROGRAMS

*AVERAGE MONTHLY BILL FOR A TYPICAL RESIDENTIAL ELECTRIC CUSTOMER THAT USES 6,920 KILOWATT-HOURS PER YEAR AND A TYPICAL RESIDENTIAL GAS HEATING CUSTOMER THAT USES 1,040 THERMS PER YEAR.**MAY 1, 2019 RATES REFLECT JUNE 1, 2019 BGS-RSCP SUPPLY CHARGES INCLUDING THE RESULTS OF THE 2019 BGS-RSCP AUCTION. E=ESTIMATE

(1) EXCLUDES CERTAIN REGULATORY BALANCE ACCOUNT ITEMS. INCLUDES NON-OPERATING PENSION AND OPEB AMOUNTS WHICH ARE REPORTED SEPARATELY AND NO LONGER SUBJECT TO CAPITALIZATION EFFECTIVE JANUARY 1, 2018 AS A RESULT OF NEW ACCOUNTING GUIDANCE. E=ESTIMATE

30

… AND ENERGY EFFICIENCY WILL HELP LOWER BILLS GOING FORWARD.


PSE&G’S DISTRIBUTION RATE CASE REASONABLY CONCLUDED

31


PSE&G CONSOLIDATED STATEMENTS OF OPERATIONS

32

1



Millions


2018 2017 2016


OPERATING EXPENSES

Energy Costs 2,520 2,421 2,644

Operation and Maintenance 1,575 1,458 1,465

Depreciation and Amortization 770 685 565


OPERATING INCOME 1,606 1,760 1,629

Net Gains (Losses) on Trust Investments (1 ) 2 —


Non-Operating Pension and OPEB Credits (Costs) 59 (8 ) (15 )


INCOME BEFORE INCOME TAXES 1,411 1,536 1,404

Income Tax Expense (344 ) (563 ) (515 )

NET INCOME $ 1,067 $ 973 $ 889



PSE&G CONSOLIDATED BALANCE SHEETS

33

1



Millions

December 31,

2018 2017

ASSETS

CURRENT ASSETS


Accounts Receivable, net of allowances of $63 in 2018 and $59 in 2017 879 882

Tax Receivable 20 —

Accounts Receivable—Affiliated Companies 123 —

Unbilled Revenues 240 296

Materials and Supplies 196 197

Prepayments 10 44

Regulatory Assets 389 211

Other 11 4





NONCURRENT ASSETS

Regulatory Assets 3,399 3,222



Other 132 114


TOTAL ASSETS $ 31,109 $ 28,554



PSE&G CONSOLIDATED BALANCE SHEETS - CONTINUED

34

1



Millions

December 31,

2018 2017

LIABILITIES AND CAPITALIZATION CURRENT LIABILITIES

Long-Term Debt Due Within One Year $ 500 $ 750

Commercial Paper and Loans 272 —

Accounts Payable 713 728

Accounts Payable—Affiliated Companies 321 340


Clean Energy Program 143 128

Obligation to Return Cash Collateral 136 129

Regulatory Liabilities 311 47

Other 345 311

Total Current Liabilities 2,825 2,511


Deferred Income Taxes and ITC 3,830 3,391

OPEB Costs 486 1,103


Regulatory Liabilities 3,221 2,948

Environmental Costs 268 283

Asset Retirement Obligations 302 212


Other 124 114


COMMITMENTS AND CONTINGENT LIABILITIES

CAPITALIZATION

LONG-TERM DEBT 8,684 7,841

STOCKHOLDER’S EQUITY

Common Stock; 150 shares authorized; issued and outstanding, 2018 and

2017—132 shares 892

892

Contributed Capital 1,095 1,095

Basis Adjustment 986 986


Accumulated Other Comprehensive Loss (1 ) —

Total Stockholder’s Equity 10,900 9,834

Total Capitalization 19,584 17,675

TOTAL LIABILITIES AND CAPITALIZATION $ 31,109 $ 28,554



PSE&G CONSOLIDATED STATEMENTS OF CASH FLOWS

35

1



Millions


2018 2017 2016


Net Income $ 1,067 $ 973 $ 889


Depreciation and Amortization 770 685 565

Provision for Deferred Income Taxes and ITC 405 616 658


Cost of Removal (160 ) (107 ) (131 )

Net Change in Other Regulatory Assets and Liabilities (153 ) (188 ) (138 )


Accounts Receivable and Unbilled Revenues 65 (106 ) (84 )

Materials and Supplies 1 (13 ) (7 )

Prepayments 14 (35 ) 22

Accounts Payable 64 1 (29 )

Accounts Receivable/Payable—Affiliated Companies, net (139 ) 101 199

Other Current Assets and Liabilities 5 15 9


Other (38 ) (86 ) (47 )



Additions to Property, Plant and Equipment (2,896 ) (2,919 ) (2,816 )

Proceeds from Sales of Trust Investments 20 36 22

Purchases of Trust Investments (22 ) (37 ) (24 )

Solar Loan Investments (5 ) 7 14

Other 9 10 15



Net Change in Short-Term Debt 272 — (153 )

Issuance of Long-Term Debt 1,350 775 1,275

Redemption of Long-Term Debt (750 ) — (271 )

Contributed Capital — 150 250

Other (14 ) (9 ) (14 )

Net Cash Provided By (Used In) Financing Activities 858 916 1,087

Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash (183 ) (149 ) 194




Income Taxes Paid (Received) $ 94 $ (104 ) $ (295 )





NEW JERSEY BOARD OF PUBLIC UTILITIES

The Board of Public Utilities (BPU) is a regulatory authority with a statutory mandate to ensure safe, adequate,

and proper utility services at reasonable rates for customers in New Jersey. The BPU consists of five

commissioners appointed by the Governor of New Jersey. These appointees are confirmed by the NJ Senate for

six-year, staggered terms. The Governor appoints one of the five to serve as Commission President.

DIANNE SOLOMON

COMMISSIONER

REPUBLICAN

TERM EXPIRES 2019

MARY-ANNA HOLDEN

COMMISSIONER

REPUBLICAN

TERM EXPIRES 2021

The website of the New Jersey Board of Public Utilities is: https://www.bpu.state.nj.us

The website of the New Jersey BPU’s Energy Mater Plan is: https://nj.gov/emp/

The website for updates on PSEG Regulatory Activity is: https://investor.pseg.com/current-regulatory-activity

JOSEPH L. FIORDALISO

PRESIDENT

DEMOCRAT

TERM EXPIRES 2025

UPENDRA J. CHIVUKULA

COMMISSIONER

DEMOCRAT

TERM EXPIRES 2020

ROBERT M. GORDON

COMMISSIONER

DEMOCRAT

TERM EXPIRES 2023

36


https://www.bpu.state.nj.us/https://nj.gov/emp/https://investor.pseg.com/current-regulatory-activity

PSE&G EXECUTIVE

DAVID M. DALY

PRESIDENT AND CHIEF

OPERATING OFFICER PSE&G

FEDERAL ENERGY REGULATORY COMMISSION

The Federal Energy Regulatory Commission, or FERC, is an independent agency that regulates the interstate

transmission of electricity, natural gas, and oil. The FERC is composed of up to five commissioners who

are appointed by the President of the United States with the advice and consent of the Senate. Commissioners

serve five-year terms, and have an equal vote on regulatory matters.

NEIL CHATTERJEE

CHAIRMAN

TERM EXPIRING:

JUNE 2021

REPUBLICAN

The website of the FERC is: https://www.ferc.gov

RICHARD GLICK

COMMISSIONER

TERM EXPIRING:

JUNE 2022

DEMOCRAT

BERNARD L. MCNAMEE

COMMISSIONER

TERM EXPIRING:

JUNE 2020

REPUBLICAN

37


https://www.ferc.gov/

Our Mission

To build an industry leading electric service company that

places safety first, in all we do, providing customers across

Long Island and the Rockaways with:

- Excellent customer service

- Best in class electric reliability and storm response

- Opportunities for energy efficiency and renewables

- Local, caring, and committed employees, dedicated

to giving back to their communities

PSEG was selected to operate Long Island Power Authority’s

(LIPA) electric transmission and distribution system under a

12-year Operating Services Agreement (OSA) that began

January 1, 2014.

In connection with the OSA, PSEG Long Island acts as LIPA’s

agent in executing on many of its obligations. In return,

PSEG is reimbursed for pass-through operating expenses,

receives a fixed management fee and is eligible to earn

incentive fees based on meeting established performance

metrics. If PSEG Long Island meets certain performance

levels during the initial agreement, the OSA may be

extended for an additional eight years.

PSEGLongIsland

LONG ISLAND

38

WE PLEDGE TO BUILD A LONG ISLAND UTILITY WITH PSEG'S SAME RECORD OF SERVICE,

RELIABILITY AND CUSTOMER SATISFACTION

Now in its sixth year of operations, PSEG Long Island continues to improve processes and public perception as we proceed

on our journey to becoming a best-in-class electric utility. We have launched major initiatives to transform our call center,

storm restoration process, customer facing technology, and more.

We continue to invest in system reliability, including $729 million in FEMA-funded storm-hardening improvements to the

most vulnerable circuits and substations. Since funding was secured in 2014, this work has improved more than 300

circuits, covering more than 850 circuit miles, from the Rockaways to Shelter Island. When completed, the FEMA reliability

work will have storm-hardened 1,025 circuit miles across the service territory.

PSEG Long Island is deploying 250,000 smart meters per year as part of the Utility 2.0 project deployment. The presence

of Advanced Metering Infrastructure enables added and improved functionality to empower PSEG Long Island’s customers

including: customer experience, system reliability, revenue protection, innovative rates and data insights for customers. We

are also focused on a strategic plan that that will make us a next-generation utility.

The plan includes the following components:

PSEG LONG ISLAND EXECUTIVES

DAVID M. DALY

CHAIRMAN OF THE BOARD

PSEG LONG ISLAND

DANIEL EICHHORN

PRESIDENT AND

CHIEF OPERATING OFFICER

PSEG LONG ISLAND 39

PSEGLongIsland

AN ENERGY PROVIDER MEETING THE

NEEDS OF CUSTOMERS AND

SHAREHOLDERS

40

A major independent power producer in the U.S., PSEG Power

operates a balanced portfolio both in terms of fuel mix and market

segment (base load, load following, and peaking) that helps us

generate the power our customers need, when they need it. PSEG

Power is also focused on transforming its generating fleet with

reliable, efficient and cleaner energy with the completion its

construction program of 1,800 MW of new gas-fired combined cycle

generation at three sites in mid-2019.

● PSEG Fossil operates the company’s portfolio of natural gas,

and oil-fired electric generating units, having strategically sold

or retired all of its coal generation between 2017 and 2021.

● PSEG Nuclear operates the Salem and Hope Creek Nuclear

Generating Stations in Lower Alloways Creek, NJ and is a part

owner of the Peach Bottom Nuclear Generation Station in

Delta, PA.

● PSEG Energy Resources & Trade

● PSEG Power Ventures

COMMITTED TO OPERATIONAL EXCELLENCE:

PSEG Power remains committed to operational excellence and

constantly strives to improve our performance while maintaining a

sharp eye on safety.

PSEGPower

41

PLANT LOCATIONS

PSEG Power’s generating assets mainly located in three competitive markets

42

PSEGPower

PSEG POWER’S FLEET TRANSFORMED: MORE EFFICIENT AND

REDUCED CARBON FOOTPRINT

YEAR TO YEAR VARIANCES IN UNIT CAPACITY RATINGS MAY IMPACT OVERALL FLEET SIZE

PSEGPower

43

GENERATING FACILITIES (AS OF OCTOBER 1st, 2019)

NAME LOCATION

TOTAL

CAPACITY

(MW)

%

OWNED

OWNED

CAPACITY

(MW)

PRINCIPAL

FUELS

USED

Steam

Bridgeport Harbor (A) CT 383 100% 383 Coal

New Haven Harbor CT 448 100% 448 Oil/Gas

Total Steam 831 831

Nuclear

Hope Creek NJ 1,173 100% 1,173 Nuclear

Salem 1&2 NJ 2,278 57% 1,308 Nuclear

Peach Bottom 2&3 (B) PA 2,450 50% 1,225 Nuclear

Total Nuclear 5,901 3,706

Combined Cycle

Bergen NJ 1,229 100% 1,229 Gas/Oil

Linden NJ 1,300 100% 1,300 Gas/Oil

Sewaren NJ 538 100% 538 Gas/Oil

Keys Energy Center MD 761 100% 761 Gas

Bethlehem NY 815 100% 815 Gas

Bridgeport Harbor CT 485 100% 485 Gas/Oil

Kalaeloa HI 208 50% 104 Oil

Total Combined Cycle 5,336 5,232

Combustion Turbine

Essex NJ 81 100% 81 Gas/Oil

Kearny NJ 456 100% 456 Gas/Oil

Burlington NJ 168 100% 168 Gas/Oil

Linden NJ 336 100% 336 Gas/Oil

New Haven Harbor CT 130 100% 130 Gas/Oil

Bridgeport Harbor CT 17 100% 17 Oil

Total Combustion Turbine 1,188 1,188

Pumped Storage

Yards Creek (B) NJ 420 50% 210

Total PSEG Power Plants 13,676 11,167

(A) BRIDGEPORT HARBOR 3 SCHEDULED RETIREMENT 2021. (B) OPERATED BY UNAFFILIATED THIRD PARTY.

PSEG POWER’S FLEET IS BEING TRANSFORMED WITH FOCUS ON IMPROVEMENT IN

EFFICIENCY

PSEG POWER’S CAPITAL NEEDS WILL DECLINE FOLLOWING COMPLETION OF

CONSTRUCTION, ENHANCING FREE CASH FLOW

44

KEYSTONE AND CONEMAUGH HAVE BEEN EXCLUDED FROM Q4 2019 AND BEYOND.

EXCLUDES NUCLEAR FUEL AND INCLUDES IDC. E=ESTIMATE

KEYSTONE AND CONEMAUGH HAVE BEEN EXCLUDED FROM Q4 2019 AND BEYOND. E=ESTIMATE.

PSEGPower

PSEGPower

45

SEWAREN 7 AND KEYS ENERGY CENTER TRANSFORMING PSEG POWER INTO A

CLEANER, MORE EFFICIENT FLEET

BRIDGEPORT HARBOR 5 COMMERCIAL OPERATION CONCLUDES

PSEG POWER’S CONSTRUCTION PROGRAM

PSEGPower

CLIMATE STRATEGY – PSEG POWER’S FLEET TRANSFORMATION IS

ADDRESSING CLIMATE CHANGE

PSEG POWER’S FLEET IS TRANSITIONING TO BECOME MORE EFFICIENT,

PRODUCTIVE AND CLEAN

NOTE: 2005 IS PSEG’ S BASELINE YEAR.

MW

MW

MWKEYSTONE AND CONEMAUGH HAVE BEEN EXCLUDED FROM Q4 2019 AND BEYOND. E=ESTIMATE.

(MW)

46

PSEGPower

PSEG POWER’S FLEET TRANSFORMATION: CLEAN NATURAL GAS & INCREASINGLY

MORE FUEL EFFICIENT

MW

DATA IS AS OF DECEMBER 31, 2018

(MW)

47*DATA UPDATED AS OF AUGUST 31, 2019E = ESTIMATE F=FORWARD PRICES

PSEG POWER’S FLEET IS WELL-LOCATED WITH ACCESS TO

SHALE GAS PRODUCTION

PSEGPower

Plant OperatorPSEG

Ownership

Total Capacity /

PSEG Owned

(MW)

License

Expiration

Year

Next

Scheduled

Refueling

Historical

Average

Capacity

Factor(2014 - 2018)

Hope Creek PSEG Nuclear 100% 1,173 2046 Spring 2021 93.0%

Salem 1 PSEG Nuclear 57%2,278 /

1,308

2036 Fall 2020 86.6%

Salem 2 PSEG Nuclear 57% 2040 Spring 2020 82.3%

Peach Bottom 2 Exelon 50% 2,450 /

1,225

2033 Fall 2020 93.1%

Peach Bottom 3 Exelon 50% 2034 Spring 2021 95.0%

48

NJ Zero Emission Certificates (ZEC)

support carbon free nuclear

generation

NEW JERSEY REALIZES BROAD BASED BENEFITS FROM PRESERVING ZERO

CARBON NUCLEAR GENERATION …

… AND CONTAINS SIGNIFICANT CONSUMER PROTECTIONS.

*

*AS OF DECEMBER 31, 2018

PSEGPower

PSEG POWER GENERATION

MEASURES* (UNAUDITED)


49

GWHR BREAKDOWN 2018 2017 2016

Nuclear

Nuclear – NJ 20,394 20,944 18,615

Nuclear – PA 10,837 10,861 10,938

Total Nuclear 31,231 31,805 29,553

Coal

Fossil Coal/Natural Gas – NJ** ‒ -19 290

Fossil Coal – PA*** 5,410 5,235 4,406

Fossil Coal – CT**** 333 202 182

Total Coal 5,743 5,418 4,878

Oil & Natural Gas

Fossil Oil & Natural Gas – NJ 11,525 8,625 11,955

Fossil Oil & Natural Gas – NY 5,142 5,304 5,202

Fossil Oil & Natural Gas – MD 2,190 ‒ ‒

Fossil Oil & Natural Gas – CT 32 18 24

Total Oil & Natural Gas 18,889 13,947 17,181

Total 55,863 51,170 51,612

% GENERATION BY FUEL TYPE 2018 2017 2016

Nuclear

Nuclear – NJ 37% 41% 36%

Nuclear – PA 19% 21% 21%

Total Nuclear 56% 62% 57%

Coal

Fossil Coal/Natural Gas – NJ** 0% 0% 0%

Fossil Coal – PA 10% 10% 9%

Fossil Coal – CT 0% 1% 0%

Total Coal 10% 11% 9%

Oil & Natural Gas

Fossil Oil & Natural Gas – NJ 21% 17% 24%

Fossil Oil & Natural Gas – NY 9% 10% 10%

Fossil Oil & Natural Gas – MD 4% ‒ ‒

Total Oil & Natural Gas 34% 27% 34%

Total 100% 100% 100%

* EXCLUDES SOLAR , KALAELOA AND PUMPED STORAGE; **HUDSON/MERCER RETIRED 6/2017; ***KEYSTONE/CONEMAUGH SOLD 9/2019,

****BRIDGEPORT HARBOR 3 SCHEDULED RETIREMENT 2021

PSEGPower

CAPACITY FACTORS(UNAUDITED)


50

NUCLEAR CAPACITY FACTORS % 2018 2017 2016

PS Share

Hope Creek 88.8 100 89.8

Peach Bottom 2 93.4 99.2 91.7

Peach Bottom 3 94.2 91.4 100.0

Salem 1 97.9 89.0 67.0

Salem 2 84.6 84.9 84.3

Total (PS Share)* 91.4 93.9 86.8

COAL CAPACITY FACTORS % 2018 2017 2016

NJ Coal**

Hudson 2 0.0 0.0 5.6

Mercer 1 0.0 0.0 0.0

Mercer 2 0.0 0.0 0.5

Total NJ* 0.0 0.0 2.8

PA Coal

Keystone 1*** 87.4 72.0 69.5

Keystone 2*** 79.4 86.8 67.4

Conemaugh 1*** 68.8 72.7 66.3

Conemaugh 2*** 84.9 78.6 57.1

Total PA* 80.1 77.5 65.1

CT Coal

Bridgeport Harbor 3**** 9.9 6.0 5.4

Total CT* 9.9 6.0 5.4

Total* 56.8 37.5 23.4

*WEIGHTED AVERAGE; **HUDSON/MERCER RETIRED 6/2017; ***KEYSTONE/CONEMAUGH SOLD 9/2019; ****BRIDGEPORT HARBOR 3

SCHEDULED RETIREMENT 2021

PSEGPower

NJ BASIC GENERATION SERVICE (BGS) 2019 AUCTION RESULTS

BGS Information: PSEG Power participates in New Jersey’s Basic Generation Service auction. The auction, which takes place

on an annual basis in February, allows load serving entities to meet electric requirements for customers who do not purchase

electric supply from third-party suppliers. Each auction represents one-third of the state’s annual supply requirements for the

upcoming three-year period. The full contract price consists of the cost of energy priced at the PJM-West hub as well as the

cost of other elements required to meet a full service contract, e.g. capacity, transmission, congestion, load shaping.

NOTE: BGS PRICES ARE QUOTED IN $/MWH AND REFLECT PSE&G ZONE; RESULTS FROM THE 2017-2019 AUCTIONS

WILL BE THE NEW BLENDED PRICES BEGINNING JUNE 1, 2019.

51

PJM’S CAPACITY MARKET HAS TRANSITIONED TO RECOGNIZE OPERATING

PERFORMANCE AS WELL AS LOCATIONAL VALUE

PJM’s Reliability Pricing Model (RPM) is based on making capacity commitments three years ahead in an effort to

create long-term price signals to attract needed investments to meet reliability requirements in the multi-state PJM

region.

PSEG POWER’S PJM ASSETS ARE

LOCATED IN CONSTRAINED ZONES,

WHICH CLEARED AT HIGHER PRICES.

SOURCE: PSEG POWER

PSEGPower

CAPACITY MARKETS PROVIDE A SOLID AND CONTINUING REVENUE STREAM

52

NOTE: DELIVERY YEARS RUN FROM JUNE 1 TO MAY 31 OF THE NEXT CALENDAR YEAR E=ESTIMATE; *AVERAGE PRICES AND CLEARED CAPACITY (MW) REFLECT BASE AND INCREMENTAL AUCTIONS. KEYSTONE AND CONEMAUGH HAVE BEEN EXCLUDED FROM Q4 2019 AND BEYOND. **AVERAGE PRICES AND CLEARED CAPACITY (MW) REFLECT BRIDGEPORT HARBOR 5 ADDITION IN MID-2019 AND THE ANNOUNCED RETIREMENT OF BRIDGEPORT HARBOR 3 IN THE SUMMER OF 2021.

PSEG POWER’S SOLAR SOURCE PORTFOLIO ADDS TO OUR CLEAN,

ZERO CARBON GENERATING FLEET

DATA AS OF DECEMBER 31, 2018

PSEGPower

PSEG POWER CONSOLIDATED STATEMENTS OF OPERATIONS

PSEGPower

53

1

PSEG POWER LLC


Millions


2018 2017 2016


OPERATING EXPENSES

Energy Costs 2,197 1,913 1,824

Operation and Maintenance 999 1,046 1,139

Depreciation and Amortization 354 1,268 881


OPERATING INCOME (LOSS) 596 (367 ) 17

Income from Equity Method Investments 15 14 11

Net Gains (Losses) on Trust Investments (140 ) 125 (6 )


Non-Operating Pension and OPEB (Costs) Credits 15 8 (4 )


INCOME (LOSS) BEFORE INCOME TAXES 431 (250 ) (43 )

Income Tax Benefit (Expense) (66 ) 729 61

NET INCOME $ 365 $ 479 $ 18


PSEG POWER CONSOLIDATED BALANCE SHEETS

54

PSEGPower

1

PSEG POWER LLC


Millions

December 31,

2018 2017

ASSETS

CURRENT ASSETS


Accounts Receivable 477 380

Accounts Receivable—Affiliated Companies 274 221

Fuel 331 289

Materials and Supplies, net 373 376


Prepayments 14 11

Other 5 3





NONCURRENT ASSETS

NDT Fund 1,878 2,133


Goodwill 16 16

Other Intangibles 143 114



Other 65 67


TOTAL ASSETS $ 12,594 $ 12,418


PSEG POWER CONSOLIDATED BALANCE SHEETS -- CONTINUED

55

PSEGPower

1

PSEG POWER LLC


Millions

December 31,

2018 2017

LIABILITIES AND MEMBER’S EQUITY

CURRENT LIABILITIES

Long-Term Debt Due Within One Year $ 44 $ 250

Accounts Payable 498 712

Accounts Payable—Affiliated Companies 16 57

Short-Term Loan from Affiliate 193 281



Other 59 99

Total Current Liabilities 842 1,435


Deferred Income Taxes and ITC 1,619 1,406

Asset Retirement Obligations 758 810

OPEB Costs 176 283




Other 122 140


COMMITMENTS AND CONTINGENT LIABILITIES

LONG-TERM DEBT

2,791 2,136

MEMBER’S EQUITY

Contributed Capital 2,214 2,214

Basis Adjustment (986 ) (986 )


Accumulated Other Comprehensive Loss (319 ) (172 )

Total Member’s Equity 5,960 5,967

TOTAL LIABILITIES AND MEMBER’S EQUITY $ 12,594 $ 12,418


PSEG POWER CONSOLIDATED STATEMENTS OF CASH FLOWS

56

PSEGPower

1

PSEG POWER LLC


Millions


2018 2017 2016


Net Income $ 365 $ 479 $ 18


Depreciation and Amortization 354 1,268 881

Amortization of Nuclear Fuel 187 199 203

Provision for Deferred Income Taxes and ITC 206 (807 ) (208 )

Interest Accretion on Asset Retirement Obligation 41 30 26

Net Realized and Unrealized (Gains) Losses on Energy Contracts and Other Derivatives 116 188 183

Emission Allowances and Renewable Energy Credit (REC) Compliance Accrual 97 103 109

Impairment Costs for Early Plant Retirements — — 102


Gain on Sale of Hudson and Mercer Units (54 ) — —

Net (Gains) Losses and (Income) Expense from NDT Fund 98 (156 ) (26 )


Fuel, Materials and Supplies (39 ) 42 31

Margin Deposit (247 ) (90 ) (76 )

Accounts Receivable 51 (45 ) (71 )

Accounts Payable (13 ) 39 (22 )

Accounts Receivable/Payable—Affiliated Companies, net (56 ) (2 ) 6

Other Current Assets and Liabilities (40 ) 10 10


Other 4 47 63



Additions to Property, Plant and Equipment (996 ) (1,231 ) (1,343 )

Purchase of Emissions Allowances and RECs (146 ) (117 ) (99 )

Proceeds from Sales of Trust Investments 1,423 2,182 739

Purchases of Trust Investments (1,392 ) (2,199 ) (766 )

Short-Term Loan—Affiliated Company — 87 276

Other 60 46 46



Issuance of Long-Term Debt 700 — 700

Cash Dividend Paid (400 ) (350 ) (250 )

Redemption of Long-Term Debt (250 ) — (553 )

Short-Term Loan—Affiliated Company (88 ) 281 —

Other (5 ) (4 ) (6 )

Net Cash Provided By (Used In) Financing Activities (43 ) (73 ) (109 )

Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash (10 ) 21 (1 )




Income Taxes Paid (Received) $ (92 ) $ 77 $ 50




RALPH A.

LAROSSA

PRESIDENT AND

CHIEF

OPERATING

OFFICER

PSEG POWER

SHAHID

MALIK

PRESIDENT

PSEG ENERGY

RESOURCES

& TRADE

PSEG POWER EXECUTIVES

PSEG POWER GLOSSARY OF TERMS

BGS RSCP BASIC GENERATION SERVICE RESIDENTIAL SMALL COMMERCIAL PRICING

CP CAPACITY PERFORMANCE

CCGT COMBINED CYCLE GAS TURBINE

FERC FEDERAL ENERGY REGULATORY COMMISSION

NRC U.S. NUCLEAR REGULATORY COMMISSION

PJM PJM INTERCONNECTION, L.L.C., A REGIONAL TRANSMISSION ORGANIZATION THAT

COORDINATES THE MOVEMENT OF WHOLESALE ELECTRICITY IN ALL OR PARTS OF

13 NORTHEASTERN STATES AND THE DISTRICT OF COLUMBIA.

RPM RELIABILITY PRICING MODEL, A PROCESS FOR PRICING GENERATION CAPACITY BASED

ON OVERALL SYSTEM RELIABILITY REQUIREMENTS; USING MULTI-YEAR FORWARD

AUCTIONS, PARTICIPANTS CAN BID CAPACITY IN THE FORM OF GENERATION, DEMAND

RESPONSE, OR TRANSMISSION TO MEET RELIABILITY NEEDS BY LOCATION AND/OR

AN ISO MARKET.

ZEC PROVIDES NJ NUCLEAR UNITS WITH A PAYMENT FOR THEIR ZERO EMISSION

ATTRIBUTES

ERIC CARR

PRESIDENT

PSEG NUCLEAR &

CHIEF NUCLEAR

OFFICER

57

PSEGPower

STRONG FINANCIAL POSITION AND CASH FLOW

PROVIDE FLEXIBILITY IN VOLATILE MARKETS

58


59

ADDITIONAL FINANCIAL INFORMATION

PSEG GROWTH STRATEGY

2019E-2023E PROPOSED PSE&G CAPITAL PROGRAM

COMMON DIVIDEND 2014-2019E

PSEG POWERING PROGRESS

RECONCILING ITEMS EXCLUDED FROM

NET INCOME TO COMPUTE OPERATING EARNINGS

PSEG SUSTAINABILITY

PSEGPublicServiceEnterpriseGroup–Additional Financial Information

60

FOCUS ON REGULATED GROWTH AND OPTIMIZING PSEG POWER’S CASH FLOW

PSE&G’S CAPITAL INVESTMENT IS BALANCED BETWEEN

T&D SPENDING WITH CLAUSE RECOVERIES

CAPITAL INCLUDES AFUDC

HASHED PORTION OF THE CHART REPRESENTS CEF PROGRAMS AS FILED. UPDATED JULY 30, 2019. E=ESTIMATE

PSEGPublicServiceEnterpriseGroup–Additional Financial Information

61

OPPORTUNITY FOR CONSISTENT AND SUSTAINABLE DIVIDEND GROWTH

PSEG IS COMMITTED TO REAL REDUCTIONS IN PSEG POWER’S CO2 INTENSITY

AND EMISSIONS AND STRENGTHENING PSE&G’S SYSTEM TO WITHSTAND

A CLIMATE CHALLENGED WORLD

TCFD=TASK FORCE ON CLIMATE RELATED FINANCIAL DISCLOSURE. (1) SOURCE: MJ BRADLEY BENCHMARKING AIR EMISSIONS, JUNE 2019;

CO2 EMISSION RATE RANKINGS OF TOP 20 PRIVATELY/INVESTOR OWNED POWER PRODUCERS (BY TOTAL GENERATION) IN LB/MWH;

ZERO-CARBON GENERATION RANKINGS OF TOP 100 LARGEST U.S. POWER PRODUCERS IN MILLION MWH.

PSEG RECONCILIATION OF NON-GAAP OPERATING EARNINGS

NYSE: PEGPSEGPublicServiceEnterpriseGroup– Additional Financial Information

62

2018 2017 2016

Net Income 1,438$ 1,574$ 887$

(Gain) Loss on Nuclear Decommissioning Trust (NDT)

Fund Related Activity, pre-tax (a) (PSEG Power) 144 (133) (5)

(Gain) Loss on Mark-to-Market (MTM), pre-tax(b)

(PSEG Power) 117 167 168

Plant Retirements and Dispositions, pre-tax (PSEG Power) (51) 975 669

Lease Related Activity, pre-tax (PSEG Enterprise/Other) 8 77 147

Income Taxes related to Operating Earnings (non-GAAP) reconciling items,

excluding Tax Reform(c) (74) (427) (391)

Tax Reform - (745) -

Operating Earnings (non-GAAP) 1,582$ 1,488$ 1,475$

PSEG Fully Diluted Average Shares Outstanding (in millions) 507 507 508

Net Income 2.83$ 3.10$ 1.75$

(Gain) Loss on NDT Fund Related Activity, pre-tax (a) (PSEG Power) 0.28 (0.26) (0.01)

(Gain) Loss on MTM, pre-tax(b)

(PSEG Power) 0.23 0.33 0.33

Plant Retirements and Dispositions, pre-tax (PSEG Power) (0.10) 1.92 1.32

Lease Related Activity, pre-tax (PSEG Enterprise/Other) 0.02 0.15 0.29


excluding Tax Reform(c) (0.14) (0.84) (0.78)

Tax Reform - (1.47) -

Operating Earnings (non-GAAP) 3.12$ 2.93$ 2.90$

(b) Includes the financial impact from positions with forward delivery months.

Public Service Enterprise Group Incorporated - Consolidated Operating Earnings (Non-GAAP) Reconciliation

Reconciling Items

Year Ended

December 31,

($ millions, Unaudited)

($ Per Share Impact - Diluted, Unaudited)

(a) Effective January 1, 2018, unrealized gains (losses) on equity securities are recorded in Net Income instead of Other Comprehensive Income

(Loss).

(c) Income tax effect calculated at 28.11% statutory rate for 2018 and 40.85% statutory rate for prior years, except for lease related activity which

is calculated at a combined leveraged lease effective tax rate, and NDT related activity which is calculated at the statutory rate plus a 20% tax on

income (losses) from qualified NDT funds.

PSEG SUBSIDIARY RECONCILIATION OF NON-GAAP OPERATING EARNINGS

NYSE: PEGPSEGPublicServiceEnterpriseGroup– Additional Financial Information

63

2018 2017 2016

Net Income 1,067$ 973$ 889$

Tax Reform - (10) -

Operating Earnings (non-GAAP) 1,067$ 963$ 889$


2018 2017 2016

Net Income 365$ 479$ 18$

(Gain) Loss on NDT Fund Related Activity, pre-tax (a) 144 (133) (5)

(Gain) Loss on MTM, pre-tax(b)

117 167 168

Plant Retirements and Dispositions, pre-tax (51) 975 669


excluding Tax Reform(c) (73) (395) (336)


Operating Earnings (non-GAAP) 502$ 505$ 514$


(b) Includes the financial impact from positions with forward delivery months.

2018 2017 2016

Net Income (Loss) 6$ 122$ (20)$

Lease Related Activity, pre-tax 8 77 147


excluding Tax Reform(a) (1) (32) (55)


Operating Earnings (non-GAAP) 13$ 20$ 72$


Reconciling Items

Year Ended

December 31,

PSE&G Operating Earnings (Non-GAAP) Reconciliation


PSEG Power LLC - Operating Earnings (Non-GAAP) Reconciliation

Reconciling Items

Year Ended

December 31,


(a) Income tax effect calculated at a combined leveraged lease effective tax rate.


(a) Effective January 1, 2018, unrealized gains (losses) on equity securities are recorded in Net Income instead of Other Comprehensive Income

(Loss).

(c) Income tax effect calculated at 28.11% statutory rate for 2018 and 40.85% statutory rate for prior years, except for NDT related activity which

is calculated at the statutory rate plus a 20% tax on income (losses) from qualified NDT funds.

PSEG Enterprise/Other - Operating Earnings (Non-GAAP) Reconciliation

Reconciling Items

Year Ended

December 31,

Public Service Enterprise Group Incorporated

80 Park Plaza

Newark, New Jersey 07102

(973) 430-7000

https://investor.pseg.com

64

SUSTAINABILITY IS THE HALLMARK OF OUR 116 YEARS OF PUBLIC SERVICE
https://investor.pseg.com/https://corporate.pseg.com/corporatecitizenship/sustainabilityhttps://www.pseg.com/sustainability

New 2019 PSEG Investor Fact Book · 2019. 11. 25. · Investor Relations [email protected]...

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Transcript of New 2019 PSEG Investor Fact Book · 2019. 11. 25. · Investor Relations [email protected]...