EX-99.1 3 d763237dex991.htm EX-99.1

Public Service Enterprise Group PSEG Earnings Conference Call 2 nd Quarter 2019 July 30, 2019 EXHIBIT 99.1

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 expressions are 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: Forward-Looking Statements 2 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 of new 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 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 presents Operating Earnings and Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) in addition to its Net Income reported in accordance with accounting principles generally accepted in the United States (GAAP). Operating Earnings and Adjusted EBITDA are non-GAAP financial measures that differ 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. Non-GAAP Adjusted EBITDA excludes the same items as our non-GAAP Operating Earnings measure as well as income tax expense, interest expense and depreciation and amortization. The last two slides in this presentation (Slides A and B) include a list of items excluded from Net Income/(Loss) to reconcile to non-GAAP Operating Earnings and non-GAAP Adjusted EBITDA with a reference to those slides included on each of the slides 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. Management believes non-GAAP Adjusted EBITDA is useful to investors and other users of our financial statements in evaluating operating performance because it provides them with an additional tool to compare business performance across companies and across periods. Management also believes that non-GAAP Adjusted EBITDA is widely used by investors to measure operating performance without regard to items such as income tax expense, interest expense and depreciation and amortization, which can vary substantially from company to company depending upon, among other things, the book value of assets, capital structure and whether assets were constructed or acquired. Non-GAAP Adjusted EBITDA also allows investors and other users to assess the underlying financial performance of our fleet before management’s decision to deploy capital. The presentation of non-GAAP Operating Earnings and non-GAAP Adjusted EBITDA is intended to complement, and should not be considered an alternative to, the presentation of Net Income/(Loss), which is an indicator of financial performance determined in accordance with GAAP. In addition, non-GAAP Operating Earnings and non- GAAP Adjusted EBITDA as presented in this release may not be comparable to similarly titled measures used by other companies. Due to the forward looking nature of non-GAAP Operating Earnings and non-GAAP Adjusted EBITDA guidance, PSEG is unable to reconcile these non-GAAP financial measures to the most directly comparable GAAP financial measure. Management is unable to project certain reconciling items, in particular MTM and NDT gains (losses), for future periods due to market volatility. GAAP Disclaimer 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 and/or Really Simple Syndication (RSS) feeds regarding new postings at https://investor.pseg.com/rss. 3

PSEG 2019 Q2 Review Ralph Izzo Chairman, President and Chief Executive Officer

PSEG Q2 2019 Second Quarter Highlights Net Income per share of $0.30 in Q2 2019 vs. $0.53 in Q2 2018 Non-GAAP Operating Earnings* per share of $0.58 in Q2 2019 vs. $0.64 in Q2 2018 PSE&G results benefitted from increased investment in utility infrastructure and rate relief PSEG Power results impacted by lower market prices and capacity revenues partly offset by Zero Emission Certificate (ZEC) revenues, higher generation volumes and cost control Operational Excellence PSE&G achieved top quartile performance among large utilities in the East in JD Power’s 2019 Electric Utility Residential Customer Satisfaction Study PSEG Power placed into service Bridgeport Harbor 5; Nuclear achieved an average capacity factor of 91% in the first half of 2019 Disciplined Capital Investment Powering Progress initiatives: *See Slides A and B for Items excluded from Net Income/(Loss) to reconcile to Operating Earnings (non-GAAP). 5 PSEG Power announced agreement to sell its ownership interest in the Keystone and Conemaugh coal generation facilities — Agreement in principle reached in Energy Strong (ES) II — Agreement in principle reached to extend Clean Energy Future – Energy Efficiency (CEF-EE) — CCGT construction program concluded with Bridgeport Harbor 5 commercial operation

PSEG Q2 Results Summary Quarter ended June 30 6 $ millions (except EPS) 2019 2018 Net Income $ 153 $ 269 Reconciling Items 141 56 Operating Earnings (non-GAAP)* $ 294 $ 325 EPS from Net Income $ 0.30 $ 0.53 EPS from Operating Earnings (non-GAAP)* $ 0.58 $ 0.64 *See Slide A for Items excluded from Net Income to reconcile to Operating Earnings (non-GAAP).

PSEG First Half Results Summary Six Months ended June 30 7 $ millions (except EPS) 2019 2018 Net Income $ 853 $ 827 Reconciling Items (12) (10) Operating Earnings (non-GAAP)* $ 841 $ 817 EPS from Net Income $ 1.68 $ 1.63 EPS from Operating Earnings (non-GAAP)* $ 1.66 $ 1.61 *See Slide A for Items excluded from Net Income to reconcile to Operating Earnings (non-GAAP).

PSEG - Regulatory and Policy Initiative Update ES II Agreement in Principle PSE&G reached an agreement in principle in the ES II infrastructure filing enabling the continuation of increasing resiliency and improving the reliability of NJ’s critical energy infrastructure PSEG’s Priorities Aligned with Advancing New Jersey’s Clean Energy Agenda PSEG Power’s three NJ nuclear plants awarded ZECs to help preserve NJ’s primary supply of zero-carbon electricity PSE&G reached an agreement in principle to extend the CEF-EE matter into 2020 and to authorize, in the interim, work on four of its existing Energy Efficiency programs to continue for an additional year NJBPU awarded New Jersey’s first offshore wind generation solicitation to Ørsted’s 1,100 MW Ocean Wind project; PSEG expects to make a decision on option to pursue an equity interest in the coming months NJBPU issued draft Energy Master Plan (EMP) in June, final EMP expected by year-end 2019 PSEG Powering Progress PSEG Power’s generating fleet has reduced its carbon emission intensity by more than 40% since 2005 and is about half the emission intensity compared to the country overall PSEG committed to a goal of reducing CO2 emissions by PSEG Power’s generating fleet by 80% from 2005 levels by 2046, with a vision for net-zero CO2 emissions by 2050 PSEG committed to reporting annually on sustainability and climate using the Task Force on Climate-related Financial Disclosures framework starting in 2020, coinciding with PSEG issuing its first Climate Report FERC/PJM Wholesale Market Reforms Underway FERC continues to consider reforms to PJM’s capacity market to accommodate state supported resources and to address price suppression PJM to postpone the 2022/2023 capacity auction pending a final FERC order on capacity market rule changes 8

Ongoing investment in utility infrastructure and implementation of 2018’s distribution rate case settlement drive increase in earnings Non-GAAP Operating Earnings* Contribution by Subsidiary 2018 Actual and 2019E Guidance *See Slides A and B for Items excluded from Net Income/(Loss) to reconcile to Operating Earnings (non-GAAP). **Based on the mid-point of 2019 non-GAAP Operating Earnings guidance of $3.15 - $3.35 per share. E = Estimate. 2018 2019E** PSE&G PSEG Power PSEG Enterprise/Other $3.12 $3.15 - $3.35E PSE&G represents approximately 75% of 2019 Operating Earnings Guidance PSEG – Re-affirming 2019 Guidance 9

PSEG 2019 Q2 Operating Company Review Dan Cregg EVP and Chief Financial Officer

PSEG – Q2 Results by Subsidiary Net Income/(Loss) 2019 2018 Change PSE&G $ 0.45 $ 0.46 $ (0.01) PSEG Power $ (0.08) $ 0.08 $ (0.16) PSEG Enterprise/Other $ (0.07). $ (0.01) $ (0.06) Total PSEG $ 0.30 $ 0.53 $ (0.23) Non-GAAP Operating Earnings* 2019 2018 Change PSE&G $ 0.45 $ 0.46 $ (0.01) PSEG Power $ 0.13 $ 0.16 $ (0.03) PSEG Enterprise/Other $ - . $ 0.02 $ (0.02) Total PSEG* $ 0.58 $ 0.64 $ (0.06) *See Slides A and B for Items excluded from Net Income/(Loss) to reconcile to Operating Earnings (non-GAAP) for PSEG, PSEG Power and PSEG Enterprise/Other. PSEG Q2 EPS Summary – Quarter ended June 30 11

PSEG EPS Reconciliation – Q2 2019 versus Q2 2018 ZECs 0.05 Capacity (0.01) Re-contracting & Market (0.03) Volume 0.01 Gas Operations (0.02) Depreciation (0.02) Interest Expense (0.02) Taxes & Other 0.01 12 Transmission 0.04 Gas Margin 0.02 Weather (0.01) Distribution O&M (0.01) Distribution Depreciation & Interest (0.02) Distribution Non-Operating Pension/OPEB 0.01 Distribution Taxes & Other (0.04) Interest Expense & Absence of One-Time Investment Income *See Slide A for Items excluded from Net Income to reconcile to Operating Earnings (non-GAAP). $0.53 $0.64 $0.58 $0.30 (0.01) (0.03) (0.02) $0.00 $0.10 $0.20 $0.30 $0.40 $0.50 $0.60 $0.70 Q2 2018 Net Income Q2 2018 Operating Earnings (non-GAAP)* PSE&G PSEG Power PSEG Enterprise/ Other Q2 2019 Operating Earnings (non-GAAP)* Q2 2019 Net Income

PSEG – First Half Results by Subsidiary Net Income/(Loss) 2019 2018 Change PSE&G $ 1.24 $ 1.09 $ 0.15 PSEG Power $ 0.51 $ 0.54 $ (0.03) PSEG Enterprise/Other $ (0.07) $ - $ (0.07) Total PSEG $ 1.68 $ 1.63 $ 0.05 Non-GAAP Operating Earnings* 2019 2018 Change PSE&G $ 1.24 $ 1.09 $ 0.15 PSEG Power $ 0.42 $ 0.49 $ (0.07) PSEG Enterprise/Other $ - $ 0.03 $ (0.03) Total PSEG* $ 1.66 $ 1.61 $ 0.05 *See Slides A and B for Items excluded from Net Income/(Loss) to reconcile to Operating Earnings (non-GAAP) for PSEG, PSEG Power and PSEG Enterprise/Other. PSEG First Half EPS Summary – Six Months ended June 30 13

PSEG EPS Reconciliation – First Half 2019 versus First Half 2018 ZECs 0.05 Capacity 0.04 Re-contracting & Market (0.11) Volume 0.02 Gas Operations (0.03) O&M 0.01 Depreciation (0.04) Interest Expense (0.04) Taxes & Other 0.03 14 Transmission 0.07 Gas Margin 0.10 Electric Margin 0.01 Distribution Depreciation & Interest (0.05) Distribution Non-Operating Pension/OPEB 0.02 Interest Expense & Absence of One-Time Investment Income *See Slide A for Items excluded from Net Income to reconcile to Operating Earnings (non-GAAP). Note: Prior quarter results may not add due to rounding. $1.63 $1.61 $1.66 $1.68 0.15 (0.07) (0.03) $0.00 $0.30 $0.60 $0.90 $1.20 $1.50 $1.80 YTD 2018 Net Income YTD 2018 Operating Earnings (non-GAAP)* PSE&G PSEG Power PSEG Enterprise/ Other YTD 2019 Operating Earnings (non-GAAP)* YTD 2019 Net Income

PSE&G 2019 Q2 Review

$0.46 $0.45 0.05 (0.06) $0.00 $0.10 $0.20 $0.30 $0.40 $0.50 $0.60 Q2 2018 Net Income Q2 2019 Net Income PSE&G EPS Reconciliation – Q2 2019 versus Q2 2018 Transmission 0.04 Gas Margin 0.02 Weather (0.01) Distribution O&M (0.01) Distribution Depreciation & Interest (0.02) Distribution Non-Operating Pension/OPEB 0.01 Distribution Taxes & Other (0.04) 16

169 791 2,814 84 1,351 2,731 182 925 3,009 0 500 1,000 1,500 2,000 2,500 3,000 3,500 April May June 2019 2018 Normal PSE&G – Q2 Weather Summary Q2 2019 vs. Q2 2018 vs. Q2 Normal PSE&G Monthly Weather Summary 17 Monthly Temperature Humidity Index (THI) 303 127 2 481 67 13 350 126 14 0 200 400 600 April May June 2019 2018 Normal Monthly Heating Degree Days (HDD) Q2 2019 heating degree days were ~23% lower than Q2 2018 and ~12% lower than normal Q2 2019 temperature-humidity index was ~9% lower than Q2 2018 and ~8% lower than normal

PSE&G – Q2 Highlights ES II agreement in principle reached with NJBPU Staff, Rate Counsel and other parties; multi-year, $842 million investment program with annual spending comparable to ES I Reached an agreement in principle to extend the CEF-EE matter into 2020 and to authorize, in the interim, work on four of its existing Energy Efficiency programs to continue for an additional year NJBPU issued draft EMP in June; final EMP slated for YE 2019 following additional stakeholder meetings August 8 and September 12 Operations PSE&G invested $1.3 billion in the first half of 2019 as part of 5-year, $12 - $14.5 billion capital program expected to produce 7.5% - 8.5% annual growth in rate base PSE&G year-to-date earnings of $1.24 per share increased 13.8% vs. $1.09 per share in the first half of 2018 In May, PSE&G issued $375 million of 10-year Medium-Term Notes (MTNs) at 3.20% and $375 million of 30-year MTNs at 3.85% and, in June, retired $250 million of 1.80% MTNs PSE&G 2019 earnings guidance remains unchanged at $1,200 - $1,230 million Financial For the trailing 12-months ended June 30, weather-normalized electric & gas sales were flat PSE&G achieved top quartile performance among large utilities in the East in JD Power’s 2019 Electric Utility Residential Customer Satisfaction Study 18 Regulatory and Market Environment

PSEG Power 2019 Q2 Review

PSEG Power EPS Reconciliation – Q2 2019 versus Q2 2018 $0.08 $0.16 $0.13 ($0.08) 0.00 (0.03) ($0.10) ($0.05) $0.00 $0.05 $0.10 $0.15 $0.20 Q2 2018 Net Income Q2 2018 Operating Earnings (non-GAAP)* Q2 2019 Net Loss Q2 2019 Operating Earnings (non-GAAP)* ZECs 0.05 Capacity (0.01) Re-contracting & Market (0.03) Volume 0.01 Gas Operations (0.02) Depreciation (0.02) Interest Expense (0.02) Taxes & Other 0.01 *See Slide B for Items excluded from Net Income/(Loss) to reconcile to Operating Earnings (non-GAAP). 20

7,366 7,144 1,403 1,187 3,578 4,804 0 2,500 5,000 7,500 10,000 12,500 15,000 2018 2019 Quarter ended June 30 2018 2019 Combined Cycle** 46.3% 46.2% Coal PA 80.8% 70.8% CT 5.0% 0.0% Nuclear 86.4% 84.4% PSEG Power – Q2 Generation Measures Total Nuclear Total Coal Natural Gas & Oil *Excludes solar, Kalaeloa and pumped storage. **Excludes peaking and steam generation. ***Includes Oil Fuel Costs of $1 million each in 2018 and 2019. PSEG Power – Generation (GWh)* 12,347 13,135 PSEG Power – Capacity Factors (%)* Quarter ended June 30 ($ millions) 2018 2019 Gas*** $ 68 $ 93 Coal 33 23 Total Fossil 101 116 Nuclear 45 42 Total Fuel Cost $ 146 $ 158 Total Generation (GWh)* 12,347 13,135 $ / MWh 11.82 12.03 PSEG Power – Fuel Costs* 21

15,754 15,360 2,942 2,618 6,380 9,252 0 5,000 10,000 15,000 20,000 25,000 30,000 2018 2019 Six Months ended June 30 2018 2019 Combined Cycle** 42.0% 44.9% Coal PA 81.1% 76.4% CT 13.7% 3.7% Nuclear 92.9% 91.1% PSEG Power – First Half Generation Measures Total Nuclear Total Coal Natural Gas & Oil *Excludes solar, Kalaeloa and pumped storage. **Excludes peaking and steam generation. ***Includes Oil Fuel Costs of $26 million and $4 million in 2018 and 2019, respectively. PSEG Power – Generation (GWh)* 25,076 27,230 PSEG Power – Capacity Factors (%)* Six Months ended June 30 ($ millions) 2018 2019 Gas*** $ 183 $ 250 Coal 76 55 Total Fossil 259 305 Nuclear 95 89 Total Fuel Cost $ 354 $ 394 Total Generation (GWh)* 25,076 27,230 $ / MWh 14.12 14.47 PSEG Power – Fuel Costs* 22

23 PSEG Power – Gross Margin Performance ZEC revenues began mid-April Capacity prices decreased on June 1: Average price now $116 MW/day in PJM and $231 MW/day in ISO-NE through May 31, 2020; Bridgeport Harbor 5 capacity locked in at $231 MW/day* for 7 years Re-contracting at lower market price Higher generation volumes from three new CCGT units Lower realized spark spreads Regional Performance Region Q2 Gross Margin ($M) Q2 2019 Performance PJM $393 ZEC revenues and higher volume from new CCGT generation partially offset by re-contracting at lower market prices and lower spark spreads New England $29 Higher volume from new CCGT generation partially offset by lower market prices New York $14 Lower prices and demand PSEG Power Gross Margin ($/MWh) $36 $34 $33 $0 $10 $20 $30 $40 $50 2017 2018 2019 Quarter ended June 30 *PSEG Power’s cleared capacity auction price includes escalations over the 7-year period based on the Handy-Whitman Index.

$- $50 $100 $150 $200 $250 2018 2019E 2020E 2021E RPM auctions include 100% Capacity Performance and will be informed by changes in: PJM’s RPM Auction Results* Delivery Year 2018/2019 2019/2020 2020/2021 2021/2022 PSEG Power’s Average Prices ($/MW-day) $205 $116 $179 $182 RTO Prices ($/MW-day) $165/$150 (CP/Base) $100/$80 (CP/Base) $77 (CP) $140 (CP) PSEG Power’s Cleared Capacity (MW) 9,200 8,500 7,300 6,900 PJM Capacity Market Summary PJM Capacity Revenue PJM Calendar Weighted Average Price PSEG Power RTO • Net CONE • PJM Parameters • Load Forecasts • Demand Response Rules • Environmental Regulations • FERC Market Reforms 24 $- $100 $200 $300 $400 $500 $600 $700 $- $50 $100 $150 $200 $250 2018 2019E 2020E 2021E Revenue ($M) [Right Axis] Calendar weighted avg price ($/MW-day) PJM to postpone the 2022/2023 capacity auction pending a final FERC order on capacity market rule changes *PSEG Power’s Average Prices and Cleared Capacity (MW) reflect Base and Incremental auctions. Delivery years run from June 1 to May 31 of the next calendar year. Keystone and Conemaugh assets held for sale have been excluded from Q4 2019 and beyond. E=Estimate.

Hedging Update Contracted Energy* *Hedge percentages as of June 28, 2019 and reflects revenues of full requirement load deals based on contract price including renewable energy credits, ancillary and transmission components but excluding capacity. Hedges include positions with MTM accounting treatment and options. 25 Jul - Dec 2019 2020 2021 Base Load (Nuclear and Base Load Coal) Volume TWh 16 31 31 % Hedged 100% 100% 45-50% Price $/MWh $38 $38 $39 Intermediate, Combined Cycle, Peaking Volume TWh 14-16 21-23 21-23 % Hedged 75-80% 25-30% 0% Price $/MWh $38 $38 $ - Total Volume TWh 30-32 52-54 52-54 % Hedged 85-90% 65-70% 25-30% Price $/MWh $38 $38 $39 Keystone and Conemaugh assets held for sale have been excluded from Q4 2019 and beyond

PSEG Power – Q2 Highlights Q2 total output up 6% on higher CCGT production with construction program completion Nuclear fleet achieved average capacity factor of 84% in Q2 and 91% for first-half 2019 Nuclear fleet produced 7.1 TWh, down ~3% related to Salem 1 extended outage to replace reactor vessel bolts vs. Hope Creek refueling in Q2 2018; CCGT fleet produced 4.8 TWh of output; and Coal fleet produced 1.2 TWh Operations Financial Announced sale of Keystone and Conemaugh interests moves PSEG Power closer to eliminating all coal by mid-2021, when Bridgeport Harbor 3 is scheduled to retire Sale of Keystone and Conemaugh interests expected to lower generating volumes by 1.2 TWh in 2019 and by 5 TWh each in 2020 and 2021 Lower realized spark spreads and market conditions also impacting generating volumes in 2019, 2020 and 2021 PJM capacity market reforms remain pending before FERC; August capacity auction deferred PSEG Power’s total debt as a percentage of capitalization was 32% at June 30 PSEG Power’s 2019 non-GAAP Operating Earnings guidance remains unchanged at $395 - $460 million; non-GAAP Adjusted EBITDA guidance for 2019 remains unchanged at $1,030 - $1,130 million 26 Regulatory and Market Environment

PSEG

PSEG Financial Highlights Re-affirming 2019 non-GAAP Operating Earnings guidance of $3.15 - $3.35 per share Business mix for 2019 guidance reflects approximately 75% of Operating Earnings from our regulated utility PSE&G PSEG’s 5-year capital spending forecast of $13 - $15.5 billion, with over 90% directed at PSE&G, is expected to produce ~ 7.5% - 8.5% compound annual growth in rate base over the planning period ES II agreement in principle provides for multi-year, $842 million investment program PSEG Power’s CCGT construction program concluded, increasing Power’s free cash flow Hope Creek and Salem 1 and Salem 2 awarded ZECs by NJBPU Financial position remains strong: Increased 2019 indicative annual common dividend by $0.08 to $1.88 per share PSEG continues to be a net beneficiary from the Tax Act Cash from PSEG Power and increasing cash from operations at PSE&G support dividend growth and fund capital spending program without the need to issue equity Debt as a percentage of capitalization was 52% at June 30 28

PSE&G’s $12B - $14.5B investment program focused on reliability, resiliency, grid modernization and clean energy CEF PSE&G Capital Spending Includes AFUDC. Hashed portion of the chart represents CEF filings. CEF filings updated to reflect an agreement in principle to extend the matter into 2020. No change to total filing position. E = Estimate. Over 90% of investment receiving contemporaneous or near-contemporaneous regulatory treatment 29 0 500 1,000 1,500 2,000 2,500 3,000 3,500 2019E 2020E 2021E 2022E 2023E Transmission Electric Distribution Gas Distribution Clean Energy 2017-2021 Plan 2018-2022 Plan

7.5% - 8.5% - Hashed portion of the chart represents CEF filings. CEF filings updated to reflect an agreement in principle to extend the matter into 2020. No change to total filing position. E = Estimate. Chart excludes CWIP. Year-end 2018 CWIP balance was ~$1.2B. CEF PSE&G Year-End Rate Base Investment program provides opportunity for ~ 7.5% - 8.5% compound annual rate base growth 30 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 2018 2019E 2020E 2021E 2022E 2023E Transmission Electric Distribution Gas Distribution Clean Energy

PSEG 2019 Guidance - By Subsidiary $ millions (except EPS) 2019E 2018 PSE&G (Net Income) $1,200 - $1,230 $1,067 PSEG Power $395 - $460 $502 PSEG Enterprise/Other $5 - $10 $13 Operating Earnings (non-GAAP)* $1,600 - $1,700 $1,582 Operating EPS (non-GAAP)* $3.15 - $3.35 $3.12 Segment Operating Earnings Guidance and Prior Year Results (non-GAAP, except as noted)* $ millions 2019E 2018 PSEG Power $1,030 - $1,130 $1,059 PSEG Power Adjusted EBITDA (non-GAAP)* Note: PSEG Power guidance includes a partial year of ZECs *See Slide A for Items excluded from Net Income to reconcile to Operating Earnings (non-GAAP) and Slide B for Items excluded from Net Income/(Loss) to reconcile to Operating Earnings (non-GAAP) and Adjusted EBITDA (non-GAAP). E = Estimate. 31

PSEG Liquidity as of June 30, 2019 32 Expiration Total Available Company Facility Date Facility Usage Liquidity ($ Millions) PSE&G 5-year Credit Facility Mar-23 $600 (A) $206 $394 PSEG Money Pool PSEG / PSEG Power 5-year Credit Facilities (PSEG) Mar-23 $1,500 (B) $188 $1,312 5-year Credit Facilities (PSEG Power) Mar-23 $1,900 (C) $40 $1,860 3-year LC Facilities (PSEG Power) Sep-21 $200 $129 $71 Total Money Pool $3,600 $357 $3,243 Total $4,200 $563 $3,637 (A) PSE&G facility will be reduced by $4 million in March 2022. $0 (B) PSEG facilities will be reduced by $9 million in March 2022. PSE&G ST Investment $0 (C) PSEG Power facilities will be reduced by $12 million in March 2022. Total Liquidity Available $3,637 PSEG Money Pool ST Investment

Reconciliation of Non-GAAP Operating Earnings Please see Slide 3 for an explanation of PSEG’s use of Operating Earnings as a non-GAAP financial measure and how it differs from Net Income. A (a) Includes the financial impact from positions with forward delivery months. (b) Income tax effect calculated at the statutory rate 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. 2019 2018 2019 2018 2018 Net Income 153 $ 269 $ 853 $ 827 $ 1,438 $ (Gain) Loss on Nuclear Decommissioning Trust (NDT) Fund Related Activity, pre-tax (PSEG Power) (41) (9) (168) 15 144 (Gain) Loss on Mark-to-Market (MTM), pre-tax (a) (PSEG Power) (210) 67 (316) (51) 117 Plant Retirements and Dispositions, pre-tax (PSEG Power) 395 (1) 395 3 (51) Lease Related Activity, pre-tax (PSEG Enterprise/Other) 58 20 58 20 8 Income Taxes related to Operating Earnings (non-GAAP) reconciling items (b) (61) (21) 19 3 (74) Operating Earnings (non-GAAP) 294 $ 325 $ 841 $ 817 $ 1,582 $ PSEG Fully Diluted Average Shares Outstanding (in millions) 507 507 507 507 507 Net Income 0.30 $ 0.53 $ 1.68 $ 1.63 $ 2.83 $ (Gain) Loss on NDT Fund Related Activity, pre-tax (PSEG Power) (0.08) (0.01) (0.33) 0.03 0.28 (Gain) Loss on MTM, pre-tax (a) (PSEG Power) (0.41) 0.13 (0.62) (0.10) 0.23 Plant Retirements and Dispositions, pre-tax (PSEG Power) 0.78 - 0.78 0.01 (0.10) Lease Related Activity, pre-tax (PSEG Enterprise/Other) 0.11 0.03 0.11 0.03 0.02 Income Taxes related to Operating Earnings (non-GAAP) reconciling items (b) (0.12) (0.04) 0.04 0.01 (0.14) Operating Earnings (non-GAAP) 0.58 $ 0.64 $ 1.66 $ 1.61 $ 3.12 $ Year Ended June 30, June 30, December 31, PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED Consolidated Operating Earnings (non-GAAP) Reconciliation Reconciling Items Three Months Ended Six Months Ended ($ millions, Unaudited) ($ Per Share Impact - Diluted, Unaudited)

Reconciliation of Non-GAAP Operating Earnings and Non-GAAP Adjusted EBITDA B (a) Includes the financial impact from positions with forward delivery months. (b) Income tax effect calculated at the statutory rate except for NDT related activity which is calculated at the statutory rate plus a 20% tax on income (losses) from qualified NDT funds. (c) Excludes amounts related to Operating Earnings (non-GAAP) reconciling items. (d) Net of capitalized interest. (a) Income tax effect calculated at a combined leveraged lease effective tax rate. 2019 2018 2019 2018 2018 Net Income (Loss) (40) $ 41 $ 256 $ 275 $ 365 $ (Gain) Loss on NDT Fund Related Activity, pre-tax (41) (9) (168) 15 144 (Gain) Loss on MTM, pre-tax (a) (210) 67 (316) (51) 117 Plant Retirements and Dispositions, pre-tax (PSEG Power) 395 (1) 395 3 (51) Income Taxes related to Operating Earnings (non-GAAP) reconciling items (b) (35) (15) 45 9 (73) Operating Earnings (non-GAAP) 69 $ 83 $ 212 $ 251 $ 502 $ Depreciation and Amortization, pre-tax (c) 94 82 187 162 346 Interest Expense, pre-tax (c) (d) 24 11 48 16 72 Income Taxes (c) 24 34 68 93 139 Adjusted EBITDA (non-GAAP) 211 $ 210 $ 515 $ 522 $ 1,059 $ PSEG Fully Diluted Average Shares Outstanding (in millions) 507 507 507 507 507 PSEG Power Operating Earnings (non-GAAP) and Adjusted EBITDA (non-GAAP) Reconciliation Three Months Ended Six Months Ended Reconciling Items June 30, June 30, ($ millions, Unaudited) Year Ended December 31, 2019 2018 2019 2018 2018 Net Income (Loss) (34) $ (3) $ (33) $ 2 $ 6 $ Lease Related Activity, pre-tax 58 20 58 20 8 Income Taxes related to Lease related activity (a) (26) (6) (26) (6) (1) Operating Earnings (non-GAAP) (2) $ 11 $ (1) $ 16 $ 13 $ PSEG Fully Diluted Average Shares Outstanding (in millions) 507 507 507 507 507 ($ millions, Unaudited) December 31, PSEG Enterprise/Other Operating Earnings (non-GAAP) Reconciliation Reconciling Items Three Months Ended Six Months Ended June 30, June 30, Year Ended Please see Slide 3 for an explanation of PSEG’s use of Operating Earnings and Adjusted EBITDA as non-GAAP financial measures and how they differ from Net Income/(Loss).