Nuclear Power Sales to Data Centers
Q: Timing of nuclear power sales to data centers?
A: We see opportunities to sell power from our nuclear facilities to data centers, aligning with state policies to attract such investments. While timing depends on various factors, including data center development and state announcements, we don't expect power to flow to data centers before May 2025, when our current state plan ends. We'll integrate any agreements into our projections transparently once terms are agreed.

Nuclear Capacity Availability
Q: How much nuclear capacity is available for new contracts?
A: After May 2025, when our state plan ends, our entire nuclear portfolio could be available for long-term contracts with data centers or other customers. With our unique position as the only merchant site with three units, we have significant capacity to support large-scale opportunities.

Impact of Nuclear PTC Guidance
Q: Updates on nuclear PTC guidance and financial impact?
A: We continue to wait for IRS guidance on the nuclear Production Tax Credit (PTC), particularly the definition of gross receipts. While we are operating under the PTC since January 1, 2024, we have planned for different scenarios and incorporated risks and opportunities into our 2024 guidance.

Funding Additional CapEx
Q: Can you fund more CapEx without issuing equity?
A: Our ability to fund additional capital expenditure depends on our FFO to debt ratios, currently in the 13-14% range per Moody's and S&P. Investments like energy efficiency (EE) programs are more credit-friendly due to quicker cash returns, while power investments, though capital-light, can be significantly FFO positive. We have room to fund more CapEx, depending on the investment nature.

Transmission System Changes
Q: How will data centers affect transmission, and PSEG's role?
A: Data centers and other developments are impacting transmission needs. We advise closely watching the PJM Regional Transmission Expansion Plan (RTEP) process, which reevaluates the grid's topology. There will be opportunities across the PJM footprint, and modifications to the grid will be necessary. PSEG is actively involved and prepared for these changes.

Energy Efficiency Program Costs
Q: Why is EE2 program more expensive per kWh saved?
A: The new $3.1 billion EE2 program involves more costly measures, like upgrading HVAC systems and commercial operations, compared to earlier initiatives like changing light bulbs. This increases the cost per kilowatt-hour saved. The program aligns with the Board of Public Utilities' goals, targeting savings that wouldn't occur otherwise, and we're not seeing significant pushback from stakeholders.

Hope Creek Outage and O&M
Q: Impact of Hope Creek outage on O&M?
A: The Hope Creek outage involves engineering work, including generator rewinding and cooling tower upgrades, adding about 8 megawatts of capacity. This contributes to higher O&M expenses for the year. Storm-related costs also increased O&M. We may see O&M trending slightly higher compared to last year due to these factors.

Contract Risk for Co-located Facilities
Q: Who bears risk in contracts with co-located facilities?
A: It's too early to discuss contract specifics with co-located facilities like data centers. Generally, we prefer not to take on commodity risk, providing power at point A for customers to manage. With our three-unit site offering redundancy, we start from a strong position to handle potential issues in agreements.

Grid-Enhancing Technologies
Q: How might grid-enhancing technologies impact operations?
A: We've piloted some grid-enhancing technologies, like conductor upgrades, and have the capability to implement additional upgrades. Adoption depends on cost-benefit analyses for consumers and addressing capacity needs. We'll continue monitoring these technologies as electrification progresses, and PJM will determine solutions for potential gaps.

FERC Transmission Policy Agenda
Q: Thoughts on upcoming FERC transmission policies?
A: We're closely monitoring several items on FERC's transmission policy agenda. With our team's involvement in transmission, we don't expect significant changes from FERC's balanced approach but remain vigilant about potential impacts on our operations.

Tariffs and Ratepayer Impact
Q: How will tariffs be structured to avoid burdening ratepayers?
A: For behind-the-meter solutions, ratepayers won't face additional infrastructure charges. Interconnection agreements handle cost allocations transparently within PJM markets. Each state addresses tariffs differently, and we haven't seen changes in New Jersey's tariff requirements for new business extensions.

Attracting Businesses and Policy Support
Q: Are there legislative initiatives to attract data centers?
A: New Jersey has existing tools and initiatives, particularly through the Economic Development Authority (EDA), to attract businesses like data centers. We don't see a need for new legislation but remain confident that the state can support opportunities without additional changes.

Reliability and Behind-The-Meter Projects
Q: How does behind-the-meter nuclear align with reliability goals?
A: While power flows involve PJM considerations, we're well-prepared due to previous infrastructure rebuilds after events like the 2003 blackout and Hurricane Sandy. New Jersey's robust transmission system supports reliability, and we work in partnership with state plans to find the best solutions.

Duration of Contracts
Q: How long are contracts with data centers?
A: Data centers represent significant, long-term investments. While we can't specify exact contract durations, we expect agreements to be for extended periods to match the scale and longevity of these developments.

Hydrogen, Offshore Wind, and Data Centers
Q: Can you pursue hydrogen, wind, and data centers simultaneously?
A: Yes, we consider all these opportunities part of an optimization strategy. With available land and existing infrastructure, we can support offshore wind ports, data centers, and hydrogen production without choosing one over the others, aligning with state policies and pending IRA implementation rules.