PUBLIC SERVICE ENTERPRISE GROUP INC (PEG)

Public Service Enterprise Group Incorporated (PSEG) is a New Jersey-incorporated energy holding company, headquartered in Newark, NJ, operating primarily through two subsidiaries: PSE&G, a regulated electric and gas transmission and distribution utility, and PSEG Power, a nuclear generation and energy marketing business. Following the February 2022 sale of its 6,750 MW fossil generation portfolio, the company has simplified its business mix toward a greater earnings contribution from PSE&G, with operations concentrated in the Mid-Atlantic U.S. PSE&G, incorporated in 1924, is New Jersey's largest utility, serving 2.3 million electric and 1.9 million gas customers across roughly 2,600 square miles, covering about 70% of the state's population. It earns regulated returns through FERC-approved transmission tariffs and BPU-approved distribution tariffs, acts as provider of last resort for electric and gas commodity supply (with no margin on pass-through commodity costs), and invests heavily in clean energy infrastructure including solar, energy efficiency, electric vehicle charging, and grid modernization through BPU-approved investment clause programs (e.g., GSMP II, Energy Strong II, CEF programs, and IAP), totaling billions in approved capital investment.

PSEG Power, a Delaware LLC formed in 1999, operates 3,766 MW of nuclear generation capacity in the PJM market (Salem 1&2, Hope Creek, and interests in Peach Bottom units), earning revenue from energy, capacity, and ancillary service sales, supplemented by Zero Emission Certificates and, starting in 2024, federal nuclear production tax credits under the Inflation Reduction Act. PSEG Power also maintains a full-requirements gas supply contract with PSE&G (extended through March 2027) and a 50% stake in a Hawaii generation facility. Other subsidiaries include PSEG Energy Holdings, which holds legacy lease investments and offshore wind interests (including a 25% stake in Ørsted's Ocean Wind 1 project, which PSEG agreed to sell in January 2023, and a 50% stake in Garden State Offshore Energy); PSEG Long Island, which operates the Long Island Power Authority's electric T&D system under a contractual Operations Services Agreement through 2025; and PSEG Services Corporation, which provides shared administrative services.

The company employs hedging strategies to stabilize earnings from its merchant nuclear generation, contracting 95-100% of anticipated 2023 output and 55-60% of 2024 output, and continues to navigate regulatory, market, and commodity price dynamics across its regulated and competitive business segments.