Total Revenue [USD, Millions]

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EPS - Diluted [USD, Per Share]

df2f2209ae9a2003b26fdb843d0c126326aad2576bb3ed67f947848df985d7b5

Adjustments for Non-Cash Items [USD, Millions]

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Net Change in Commercial Paper [USD, Millions]

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a5267bc297f006042610cf738cbccb5dba55d1ba949301c6c7a426d4925c9840

Mark-to-market Value at Risk 95% Confidence Level Period End (Millions of USD)

Mark-to-market Value at Risk 95% Confidence Level Average (Millions of USD)

Mark-to-market Value at Risk 95% Confidence Level High (Millions of USD)

Mark-to-market Value at Risk 95% Confidence Level Low (Millions of USD)

Mark-to-market Value at Risk 99.5% Confidence Level Period End (Millions of USD)

Mark-to-market Value at Risk 99.5% Confidence Level Average (Millions of USD)

Mark-to-market Value at Risk 99.5% Confidence Level High (Millions of USD)

Mark-to-market Value at Risk 99.5% Confidence Level Low (Millions of USD)

6ab7bee9a95ea169ed4d96c4fcc555c1bc915b7076e068064f35b3eb00e16e92

Current Assets [USD, Millions]

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fec1fd1de152b2431e33a729db346a8396985ad56d3c994ec42a8da16d3f0e22

| Metric (in millions USD) | Q3 2024 | Nine Months Ended September 30, 2024 |
|--------------------------|---------|-------------------------------------|
| **PSE&G Operating Revenues** | **$2,139**  **[0000950170-24-120749_peg-20240930.htm:60]**  | **$6,335**  **[0001193125-24-250287_d901097dex99.htm:6]**  |
| **PSEG Power & Other Operating Revenues** | **$583**  **[0000950170-24-120749_peg-20240930.htm:60]**  | **$2,140**  **[0001193125-24-250287_d901097dex99.htm:6]**  |
| **Eliminations** | **$(80)**  **[0000950170-24-120749_peg-20240930.htm:60]**  | N/A |
| **Consolidated Total Operating Revenues** | **$2,642**  **[0000950170-24-120749_peg-20240930.htm:60]**  | N/A |

2a2a03e340a6f038bb77277601bc16331d5c9a0c7dacce2a3623adf0abea7062

3467d6156fdb590f0e12ce4b7c235df0a0dfedfabdffa60155eca445baac4b58

Public Service Enterprise Group Incorporated (PSEG) is a diversified energy company operating primarily through its two main segments: Public Service Electric and Gas Company (PSE&G) and PSEG Power LLC. PSE&G is a public utility that provides electric transmission and electric and gas distribution services in New Jersey, regulated by the New Jersey Board of Public Utilities (BPU) and the Federal Energy Regulatory Commission (FERC) **[0000950170-24-120749_peg-20240930.htm:62]** **[0000950170-24-120749_peg-20240930.htm:11]**. PSEG Power is an energy supply company that operates merchant nuclear generating assets and engages in competitive energy sales, including bidding energy, capacity, and ancillary services into markets and entering bilateral contracts **[0000950170-24-120749_peg-20240930.htm:62]** **[0000950170-24-120749_peg-20240930.htm:59]**. The company focuses on regulated investments to improve sustainability and predictability, with a capital investment program estimated between $18 billion to $21 billion from 2024 to 2028 **[0000950170-24-120749_peg-20240930.htm:63]**.

1. **Public Service Electric and Gas Company (PSE&G)** - Provides electric transmission and electric and gas distribution services in New Jersey, investing in regulated solar generation projects and energy efficiency programs.
   - **Electric Distribution** - Delivers electricity to residential, commercial, and industrial customers.
   - **Gas Distribution** - Supplies natural gas to customers, ensuring safe and reliable service.
   - **Transmission** - Manages the high-voltage transmission of electricity across the region.
2. **PSEG Power LLC** - Operates merchant nuclear generating assets and engages in competitive energy sales, including third-party sales and sales to affiliates.
   - **Electricity Sales** - Offers electricity and related products through market bidding and bilateral contracts.

9ca611942bce299ca07c222052c37c10ab6bf5e4eb791d8510e39c0043bac0b5

1. Given the postponement of the second state agreement approach by the BPU and potential changes in FERC and PJM transmission planning, how is PSE&G adjusting its strategy for future regulated transmission investments, and what impact might this have on your capital plan?
2. With the Russia waivers on nuclear fuel supply expiring in 2028 and your current coverage only through 2027, what specific steps are you taking to secure long-term fuel supply beyond 2027, and how might potential supply constraints or cost increases affect your nuclear operations?
3. You've highlighted significant opportunities in co-located data centers and increased data center load growth; what challenges do you foresee in realizing these opportunities, particularly regarding infrastructure investment and regulatory hurdles, and how might they impact your capital expenditure plans?
4. As higher capacity and power prices could benefit your unregulated generation units, are you concerned that rising customer bills might crowd out necessary rate base investments, and how do you plan to balance these factors to ensure customer affordability while funding utility growth?
5. Regarding the Long Island Power Authority's RFP for grid management beyond 2025, what competitive pressures do you face in retaining this contract, and what strategies are you implementing to ensure PSEG remains the preferred operator in a potentially more competitive selection process?

d49c1f1408d04db54aa674dfb30cbc7712f96027c65ac5f024dfa139c9b59d84

PSE&G

PSEG Power & Other

Eliminations

Electric Distribution

Gas Distribution

Transmission

Electricity and Related Product Sales

- Third-Party Sales (PJM)

- Sales to Affiliates

Gas Sales

- Third-Party Sales

Other Revenues from Contracts

Revenues Unrelated to Contracts

Total Revenue

8905cc5637d37322ef14b6991c281234883bc1dc760c6aa82e40ff6f3d1e7841

### Q4 2023 Earnings Call
- **Issued Period**: Q4 2023
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Full Year 2024 Non-GAAP Operating Earnings Guidance**: $3.60 to $3.70 per share  **[PEG_3375052_1]** **[PEG_3375052_7]** .
  2. **Earnings CAGR**: 5% to 7% compounded annual growth rate for operating earnings through 2028  **[PEG_3375052_1]** **[PEG_3375052_7]** .
  3. **Regulated Capital Expenditure Plan**: $18 billion to $21 billion through 2028, supporting a rate base CAGR of 6% to 7.5% through 2028  **[PEG_3375052_1]** .

### Q1 2024 Earnings Call
- **Issued Period**: Q1 2024
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Full Year 2024 Non-GAAP Operating Earnings Guidance**: $3.60 to $3.70 per share  **[PEG_3381535_6]** **[PEG_3381535_1]** .
  2. **Long-term Non-GAAP Operating Earnings Growth**: 5% to 7% compound annual growth through 2028  **[PEG_3381535_6]** **[PEG_3381535_1]** .
  3. **Capital Investment Plan**: $19 billion to $22.5 billion through 2028, with the regulated portion being $18 billion to $21 billion  **[PEG_3381535_2]** .
  4. **Rate Base Growth**: 6% to 7.5% compound annual growth through 2024 to 2028, based on a year-end 2023 rate base of $29 billion  **[PEG_3381535_2]** .

### Q2 2024 Earnings Call
- **Issued Period**: Q2 2024
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Long-term Non-GAAP Operating Earnings Growth**: 5% to 7% through 2028  **[PEG_3395028_3]** **[PEG_3395028_5]** .
  2. **Capital Investment Plan**: $18 billion to $21 billion from 2024 to 2028  **[PEG_3395028_5]** **[PEG_3395028_2]** .
  3. **Full Year 2024 Non-GAAP Operating Earnings Guidance**: $3.60 to $3.70 per share  **[PEG_3395028_5]** .
  4. **Rate Base Growth**: 6% to 7.5% compound annual growth over 2024 through 2028, starting from a year-end 2023 rate base of $29 billion  **[PEG_3395028_2]** .

### Q3 2024 Earnings Call
- **Issued Period**: Q3 2024
- **Guided Period**: N/A
- **Guidance**: The documents do not contain information about the Q3 2024 earnings call for PSEG (PEG). Therefore, I cannot provide the guidance metrics from that specific earnings call.

485074b52a4da74c9e1c7246cf042227d2b4db612ee37f8a79fdc6e857cc290b

| Name               | Position                                      | Start Date            | Short Bio                                                                                                                                                                                                 |
|--------------------|-----------------------------------------------|-----------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Ralph A. LaRossa   | Chair of the Board, President & CEO           | September 2022        | Ralph A. LaRossa is the **Chair of the Board, President, and CEO** of PSEG. He has been serving as Chair of the Board since **January 2023** and as President and CEO since **September 2022**. He joined PSE&G in 1985  **[0001193125-24-046285_d518938dpre14a.htm:10]** **[0001193125-24-062240_d518938ddef14a.htm:10]** **[0001193125-23-066199_d436901ddef14a.htm:12]** **[0001193125-23-050916_d436901dpre14a.htm:11]** .            |
| Daniel J. Cregg    | Executive Vice President & CFO                | November 13, 2023     | Daniel J. Cregg serves as the **Executive Vice President and CFO** of PEG. He has been in this role since at least **November 13, 2023**, as indicated by his signature on the registration statement filed on that date  **[0001193125-23-276103_d538380ds3asr.htm:60]** **[0000950170-24-120749_peg-ex32_1.htm:0]** .                  |
| Tamara L. Linde    | Executive Vice President & Chief Legal Officer| September 16, 2024    | Tamara L. Linde has been with PSEG since **1990** and has served as the company's General Counsel for the past ten years. She was appointed as Executive Vice President and Chief Legal Officer effective **September 16, 2024**  **[0001193125-24-220162_d871816dex99.htm:0]** **[0001193125-24-220162_d871816d8k.htm:1]** **[0000950170-24-120749_peg-ex10_1.htm:0]** .        |
| Kim C. Hanemann    | President & COO, PSE&G                        | N/A                   | Kim C. Hanemann serves as the **President and COO of PSE&G**. She was listed as one of the Named Executive Officers in the 2022 and 2023 proxy statements for PSEG. Specific details on her start date are not provided  **[0001193125-24-046285_d518938dpre14a.htm:40]** **[0001193125-24-062240_d518938ddef14a.htm:40]** **[0001193125-24-046285_d518938dpre14a.htm:55]** **[0001193125-24-062240_d518938ddef14a.htm:54]** .            |
| Charles V. McFeaters| President & Chief Nuclear Officer (CNO)      | May 20, 2023          | Charles V. McFeaters was promoted to the position of **President and CNO of PSEG Nuclear** on **May 20, 2023**. Prior to this role, he served as the Senior Vice President of Nuclear Operations at PSEG Nuclear  **[0001193125-24-046285_d518938dpre14a.htm:40]** **[0001193125-24-062240_d518938ddef14a.htm:40]** **[0001193125-24-046285_d518938dpre14a.htm:8]** .                      |
| Grace Park         | Executive Vice President & General Counsel    | September 16, 2024    | Grace Park was appointed as the Executive Vice President and General Counsel of PSEG effective **September 16, 2024**. She joined PSEG in 2017 and was promoted to Vice President, Deputy General Counsel, and Chief Litigation Counsel in 2020  **[0000950170-24-120749_peg-ex10_2.htm:1]** **[0001193125-24-220162_d871816dex99.htm:0]** . |

67309d593facf67bb1da39ceb7cf75729d30715819282ab895cd381a41fb3121

| Program Details          | Program 1                       |
|--------------------------|---------------------------------|
| Approval Date            | N/A                             |
| End Date/Duration        | N/A                             |
| Total additional amount  | **$500 million**  **[PEG_3229051_0]** **[PEG_271598_1]** **[PEG_311135_6]**       |
| Remaining authorization  | N/A                             |
| Details                  | Part of a strategic initiative to return capital to shareholders. Completed through open market purchases and an accelerated share repurchase program.  **[PEG_3229051_0]** **[PEG_271598_1]** **[PEG_311135_6]**  |

95ad6eb14a73a05fb192318890a84d9c5900da8eef55da11a4fbfadd875480e0

| Name                  | Start Date | End Date | Reason for Change |
|-----------------------|------------|----------|-------------------|
| Deloitte & Touche LLP | 1934  **[0001628280-24-006885_pseg-20231231.htm:90]**  | Present  | Current auditor   |

3ea46194007cda2fbbf05fcf81035ad31c94a3121d863fcb75fef1ef53e9bc60

23794d91c53ae875c8e247d72561e35d9d06ee07c70c9e0dbcc977a6d161504a

- Total Revenue: $2,642 million (**-33% YoY**)  **[0000950170-24-120749_peg-20240930.htm:60]** **[0000788784-23-000008_pseg-20230930.htm:61]** **[0000788784-23-000008_pseg-20230930.htm:73]** **[0000788784-23-000008_pseg-20230930.htm:5]**   
- PSE&G Segment: $2,139 million (Q3 2024)  **[0000950170-24-120749_peg-20240930.htm:15]**   
- Operating Income (EBIT): $641 million (**-67% YoY**)  **[0000950170-24-120749_peg-20240930.htm:60]** **[0000788784-23-000008_pseg-20230930.htm:5]**   
- Net Income: $52 million (-63% YoY)  **[0000950170-24-120749_peg-20240930.htm:60]** **[0000788784-23-000008_pseg-20230930.htm:61]** **[0000788784-23-000008_pseg-20230930.htm:5]**   
- Cost of Goods Sold: $899 million (-8% YoY)  **[0000950170-24-120749_peg-20240930.htm:60]** **[0000788784-23-000008_pseg-20230930.htm:73]** **[0000788784-23-000008_pseg-20230930.htm:5]**   
- SG&A: $808 million (-42% YoY)  **[0000950170-24-120749_peg-20240930.htm:60]** **[0000788784-23-000008_pseg-20230930.htm:73]** **[0000788784-23-000008_pseg-20230930.htm:5]**   

f5e3006ee4fab4f7a83b57d33855ca99712684395533107ccef0d5194490d253

e32f09c49cc295e83ca264baff084238921d133f883cc2b6ba9cbe33f786ab93

- **Uncertainty around future rate base growth due to key investment programs not being firmed up**: While management acknowledges positive indications for incremental transmission spend (approximately **$400 million**) and potential increases in energy efficiency investments, these plans are **not yet finalized**. The filings for energy efficiency haven't been made, and final approvals from PJM for transmission projects are pending. Additionally, the Gas System Modernization Program (GSMP) had a higher run rate but was **not as much as GSMP I was filed for**. This uncertainty may constrain rate base growth projections and impact earnings growth within the **6% to 7.5% rate base CAGR** range.  **[PEG_3362963_19]** **[PEG_3362963_20]**
- **Variability in capital expenditure timing may impact future earnings growth**: The company is ahead of plan on capital expenditures for 2023 by about **$200 million**, primarily due to pulling forward some projects. While this demonstrates strong execution, there is fluidity in CapEx timing, which could result in fewer investment opportunities in subsequent years like **2024** or **2025**, potentially affecting future earnings growth. Management indicated that future CapEx could be adjusted, but this introduces uncertainty into the capital deployment plan.  **[PEG_3362963_24]**
- **Delays and lack of clarity in obtaining nuclear Production Tax Credit (PTC) guidance could affect the nuclear segment's performance**: The company has **not received updates** on the timing or details of the nuclear PTC guidance from the Treasury, creating uncertainty for their nuclear business's financial projections. This delay may impact planning for nuclear refueling cycles and upgrades, such as those at **Hope Creek** and **Salem** plants, potentially affecting the company's ability to capitalize on PTC benefits in a timely manner.  **[PEG_3362963_11]** **[PEG_3362963_23]**

ae32b586ec727317151668827b5bc424f5d25ab78114a08827cb6b20f52fed6a

- **PSEG is experiencing significant growth in data center demand, with several hundred megawatts moving into the firm stage**, representing new capital investment opportunities.  **[PEG_3395028_7]** **[PEG_3395028_18]** **[PEG_3395028_22]**
- **Progress on nuclear business upsides is on track with no issues**, including fuel cycle changes at Hope Creek, upgrades at Salem, and long-term license extensions, supporting earnings growth.  **[PEG_3395028_10]**
- **Strong outlook for EV adoption and electrification initiatives**, with investments in infrastructure modernization and energy efficiency, and no anticipated election-related risks to EV investments.  **[PEG_3395028_15]** **[PEG_3395028_19]**

600feb417d111342fd13abb7c137a9efa73f1c1961af791256139dfb4d298f55

- **Uncertainty surrounding the nuclear Production Tax Credit (PTC) guidance is impacting PSEG's risk management and hedging strategies**, potentially affecting future earnings. The company is awaiting guidance from the Treasury without a clear timeline, complicating their ability to minimize overall risk in their hedging positions (as per Daniel Cregg).  **[PEG_3375052_15]**
- **Limited incremental growth opportunities beyond the existing $18-$21 billion capital expenditure plan**, with PSEG not anticipating significant additional investments to drive growth above their current projections, potentially limiting future rate base expansion (as stated by Ralph LaRossa).  **[PEG_3375052_11]**
- **Potential regulatory risks and delays in key filings**, including the $3.1 billion Energy Efficiency II investment program, with the decision not expected until **October**, and the distribution base rate case, which may not conclude until **later in 2024**, creating uncertainty in recovering investments and implementing new rates (as per Ralph LaRossa's comments).  **[PEG_3375052_13]** **[PEG_3375052_16]**

07c63ca32e8d9dcf66a8140aad1bdddd988795c72f54ef6d8f8964cb86ba4833

- **PSEG's nuclear fleet increased its capacity factor from 92% to 93% this year**, enhancing predictability and revenues, allowing the company to avoid issuing equity and continue growth on the utility side.  **[PEG_3375052_18]**
- **PSEG filed a $3.1 billion Energy Efficiency II investment program**, which, if approved, will contribute to future rate base growth through 2028.  **[PEG_3375052_13]**
- **Positive regulatory environment in New Jersey, with recent favorable outcomes, suggests that PSEG's rate case is expected to proceed smoothly**, supporting future earnings stability.  **[PEG_3375052_9]**

223dbc992d85a8403bbecd55e827d0c2b63547332201860833ef91040305e5aa

- **Accelerated execution on capital projects**: PSEG is investing ahead of schedule, with an additional **$200 million** in capital expenditures due to early completion of work, reflecting strong operational performance and potential for increased earnings.  **[PEG_3362963_24]**
- **Positive credit outlook from Moody's**: Moody's has taken favorable action on PSEG Power's outlook, recognizing the improved business mix and the stabilization provided by the **nuclear Production Tax Credit (PTC)**, enhancing the company's financial strength and creditworthiness.  **[PEG_3362963_28]** **[PEG_3362963_22]**
- **Potential increase in rate base growth**: PSEG anticipates **incremental transmission spend of around $400 million** and higher energy efficiency investments, which could raise the **rate base CAGR beyond the current 6% to 7.5%**, signaling future earnings growth opportunities.  **[PEG_3362963_19]**

481b6ae96828de2847388ded5d8944e8fcb5bfab5b234430bf2ec2faca41e082

| Year | Amount Due (Millions) | Debt Type                  | Interest Rate (%) | % of Total Debt                                                                 |
|----------|---------------------------|--------------------------------|-----------------------|------------------------------------------------------------------------------------|
| 2024     | 2,400                     | Long-Term Debt Due Within One Year | N/A                   | 11.7% = (2,400 / 20,907) * 100 **[0000950170-24-120749_peg-20240930.htm:6]** **[0000950170-24-120749_peg-20240930.htm:6]**                                    |
| 2024     | 547                       | Commercial Paper and Loans        | N/A                   | 2.6% = (547 / 20,907) * 100 **[0000950170-24-120749_peg-20240930.htm:6]** **[0000950170-24-120749_peg-20240930.htm:6]**                                       |
| N/A      | 18,960                    | Long-Term Debt                   | N/A                   | 90.7% = (18,960 / 20,907) * 100 **[0000950170-24-120749_peg-20240930.htm:6]**                                           |

0cfa20485eba58c57a3b6aca3a1d68c90e2aaf68dffae93f285906fa28d9ca3c

1. **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.  **[PEG_3381535_7]** **[PEG_3381535_18]** 

2. **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.  **[PEG_3381535_18]** **[PEG_3381535_14]** 

3. **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.  **[PEG_3381535_11]** **[PEG_3381535_12]** 

4. **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.  **[PEG_3381535_13]** 

5. **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.  **[PEG_3381535_9]** 

6. **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.  **[PEG_3381535_19]** 

7. **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.  **[PEG_3381535_16]** **[PEG_3381535_17]** 

8. **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.  **[PEG_3381535_24]** 

9. **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.  **[PEG_3381535_26]** 

10. **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.  **[PEG_3381535_25]** 

11. **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.  **[PEG_3381535_10]** 

12. **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.  **[PEG_3381535_23]** 

13. **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.  **[PEG_3381535_21]** 

14. **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.  **[PEG_3381535_22]** 

15. **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.  **[PEG_3381535_20]** 

6e29f936503ed145fa5f3ed032aa7577fbce8ebdb739a96d7784226b42cfc858

1. **Equity Issuance Plans**  
   **Q:** Are you planning any equity issuance through 2028?  
   **A:** No, we have **no plans** for equity issuance, even as we roll forward our capital plan to 2028 and include growth opportunities like energy efficiency and transmission. We can fund our investments without incremental equity.  **[PEG_3362963_12]** 

2. **2024 Guidance and Assumptions**  
   **Q:** When will you provide 2024 guidance, and how are you approaching assumptions?  
   **A:** We plan to provide our 2024 guidance in **December** after completing our business planning process with the board. We'll make reasonable assumptions regarding factors like the rate case timeline and potential PTC guidance, and we believe our prior efforts have reduced volatility, allowing us to be confident in our guidance range.  **[PEG_3362963_11]** 

3. **CapEx Updates**  
   **Q:** Will there be updates to your CapEx plan, and how does energy efficiency factor in?  
   **A:** We'll provide a partial CapEx update through **2027** in December, with more details in January. The upcoming energy efficiency filing is expected to be **larger** than previous ones, indicating more opportunity. We're ahead of plan on CapEx, and this performance is within our overall range.  **[PEG_3362963_18]** 

4. **Nuclear PTC and Hedging Strategy**  
   **Q:** How are you considering the nuclear PTC in your business plan and hedging strategy?  
   **A:** We've set our plan at the PTC **floor** and aren't counting on anything above that. We're progressing as expected with our nuclear operations, including the Hope Creek refueling. Our hedging strategy for **2025** remains similar, even amidst uncertainty around PTC calculations; we're continuing to hedge appropriately until we receive clarity.  **[PEG_3362963_11]** **[PEG_3362963_13]** 

5. **Rate Case Expectations**  
   **Q:** Any changes in your rate case expectations given higher interest rates?  
   **A:** There's **no significant change** in our rate case expectations. While higher interest rates could impact costs in the revenue requirement, this is our first filing since **2018** when rates were lower. Net-net, we don't anticipate a considerable rate increase due to interest rates, so it's not a rate pressure as we proceed.  **[PEG_3362963_14]** 

6. **GSMP Extension and Capital Plans**  
   **Q:** How does the GSMP II extension fit into your capital plan?  
   **A:** The two-year GSMP II extension agreed upon is at a **higher run rate** than our filing, which is positive. While some areas like renewable natural gas and hydrogen blending are policy discussions for the future, our commitment to reducing cast iron in our system remains supported by the commission. We're within our capital plan range.  **[PEG_3362963_16]** 

7. **Hydrogen Hub Opportunities**  
   **Q:** What is your involvement in hydrogen hub development?  
   **A:** We're part of the **MACT II hydrogen hub** selected by the DOE, offering long-term regional growth opportunities. Potential projects include placing an electrolyzer in South Jersey and leveraging existing pipelines and storage. This isn't currently included in our plan; it's upside without adding commodity risk.  **[PEG_3362963_17]** 

2a8c15cfb1b2e53af72397ddc19f3eb7ec188699101518a65c2e37eae592d243

- **Higher O&M expenses** are expected for the full year due to **storm-related costs** and the **Hope Creek nuclear outage**, which could **negatively impact earnings**.  **[PEG_3381535_17]**
- Management is **cautious about updating guidance** despite higher power prices, indicating **uncertainty in realizing higher revenues**, as markets are **cyclical** and **prices vary across PJM**.  **[PEG_3381535_15]**
- The company may face **regulatory and infrastructure challenges** from the need for **additional transmission grid modifications** due to **electrification**, **data centers**, and **offshore wind**, potentially increasing **capital requirements** and **regulatory uncertainties**.  **[PEG_3381535_10]**

65737590bf2a6a3b0c22ed6404506a3f542bd9ca7c97e0ba1299f40b7cf0d7fa

- **Potential Growth from Nuclear Assets for Data Centers and Hydrogen Production**: PEG is exploring opportunities to leverage its nuclear assets by co-locating data centers and hydrogen production facilities at its nuclear sites, which could lead to long-term contracts and additional revenue streams.  **[PEG_3381535_22]** ,  **[PEG_3381535_20]**
- **Strong Financial Position Allows for Additional Investments Without New Equity**: PEG has capacity to fund additional capital expenditures without issuing new equity, supported by a solid balance sheet and favorable FFO-to-debt ratios, allowing for potential growth in investments, especially in energy efficiency and infrastructure projects.  **[PEG_3381535_13]**
- **Prepared to Capitalize on Transmission Opportunities**: PEG is well-positioned to benefit from transmission system upgrades required to support offshore wind, data centers, and increased electrification, potentially leading to growth in transmission investments across the PJM footprint.  **[PEG_3381535_9]**

947ddbf3f3610d0f5eaae3128e87be5c6d2e3776b9b2875985534deab1f3fe2f

1. **Data Center Co-Location Opportunities**  
   **Q:** When will you finalize a co-location data center deal?  
   **A:** We haven't set a time frame yet, but we're carefully considering potential deals to ensure alignment with state policies and economic development goals. We're seeing significant interest, with **several hundred megawatts** of data centers moving forward in New Jersey.  **[PEG_3395028_7]** **[PEG_3395028_17]** **[PEG_3395028_18]** 

2. **Impact on Capital Expenditure Plans**  
   **Q:** How will data centers affect your CapEx plans?  
   **A:** We're seeing steady growth in data center requests and EV charging, which may require system investments. We'll update our capital plan at the end of the year, but we're pleased with the positive developments and the potential opportunities they present.  **[PEG_3395028_7]** **[PEG_3395028_14]** **[PEG_3395028_15]** **[PEG_3395028_18]** 

3. **Assumptions for PJM Capacity Auctions**  
   **Q:** Are you assuming higher capacity payments in your forecast?  
   **A:** Our long-term plan includes some assumptions, but capacity revenues are not a significant part of our overall mix. Our **5% to 7% growth rate** isn't highly sensitive to capacity prices, and we don't expect the upcoming auction results to materially impact our outlook.  **[PEG_3395028_12]** 

4. **Regulatory Perspective on Co-Located Load**  
   **Q:** Will FERC proceedings delay your co-location deals?  
   **A:** We don't anticipate any delays. Each deal is specific, and we believe in following existing PJM rules. If FERC sees challenges, they'll step in, but we're committed to supporting New Jersey's economic development without holding up our plans.  **[PEG_3395028_9]** **[PEG_3395028_10]** **[PEG_3395028_11]** 

5. **Nuclear Operations and Uprates**  
   **Q:** Any progress on nuclear uprates and license extensions?  
   **A:** Everything is on track with **no red flags**. We're moving forward with fuel cycle changes at Hope Creek, upgrades at Salem, and pursuing long-term license extensions for our nuclear units.  **[PEG_3395028_10]** 

6. **EV Growth and Investment**  
   **Q:** Any election risks to EV uptake and investments?  
   **A:** We don't see any significant risks. Regardless of political changes, we expect continued EV adoption due to our compressed service territory, and we're investing accordingly in distribution infrastructure to support growth.  **[PEG_3395028_19]** **[PEG_3395028_15]** 

7. **Rate Case Process and Stakeholder Engagement**  
   **Q:** Any issues in your current rate case proceedings?  
   **A:** The process is progressing efficiently with **no red flags**. Our team is executing well, and we appreciate the thoughtful approach of the Public Utilities commission.  **[PEG_3395028_16]** 

8. **Potential Impact on Customer Bills**  
   **Q:** Will higher prices crowd out rate base investments?  
   **A:** We don't foresee higher capacity or power prices impacting our investments. Customer income has been strong, and the share of wallet for utility bills remains consistent. Required utility investments will continue as planned.  **[PEG_3395028_27]** 

fff8cb0e8e4ff348ffed000ad057a129d621bbac41c11ada468ab4a5ff736d2e

- **Uncertainty in Advancing Co-located Data Centers at Artificial Island**: PSEG indicated that they are not yet at the stage of discussing an Interconnection Service Agreement (ISA) for co-located load at Artificial Island, suggesting potential delays or uncertainties in their data center expansion plans at this site.  **[PEG_3395028_10]**
- **Limited Contribution of Capacity Market to Earnings Growth**: PSEG acknowledged that the upcoming PJM capacity auction results are not expected to significantly impact their 5% to 7% earnings growth forecast, indicating limited upside potential from capacity markets for their generation assets.  **[PEG_3395028_14]**
- **Noncommittal Stance on FERC Policy Developments**: When asked about their position on the FERC docket affecting PJM, PSEG executives stated that they do not have enough details to weigh in and are focusing on supporting local economic development plans, potentially reflecting a passive approach to policy matters that could impact their operations.  **[PEG_3395028_11]**

59a3f659906cf6635774eb95ad68aa1ce99fa0d5700cd6ebe08beb3b83919260

1. **Nuclear PTC Guidance Timeline**  
   **Q:** When will you receive nuclear PTC guidance?  
   **A:** We're still waiting for Treasury to issue guidance on the nuclear PTCs, and they haven't provided a date yet.  **[PEG_3375052_13]** **[PEG_3375052_15]**  We've prepared extensively for various outcomes and will act promptly once we have the final rules.  **[PEG_3375052_15]** 

2. **Nuclear Earnings Upside Beyond 2025**  
   **Q:** Is there further earnings upside from nuclear beyond 2025?  
   **A:** We see potential upside from nuclear through PPAs or similar opportunities, depending on state economic development.  **[PEG_3375052_8]**  The ZECs are in place through **2025**, and once PTC rules come out, we'll plan to optimize revenues from our plants.  **[PEG_3375052_8]** 

3. **Hedge Program Amid PTC Uncertainty**  
   **Q:** How will you manage hedging without PTC guidance?  
   **A:** We're moderating our hedges to minimize overall risk while awaiting PTC guidance.  **[PEG_3375052_14]**  We're preparing for various outcomes and adjusting our hedge positions accordingly.  **[PEG_3375052_14]** 

4. **Data Center Load Growth**  
   **Q:** How is data center activity impacting load growth?  
   **A:** We're starting to see data centers emerge, with **50 to 100 megawatts** of potential load so far.  **[PEG_3375052_10]**  This creates opportunities for infrastructure investments and spreads costs over more customers, benefiting residential bills.  **[PEG_3375052_10]** 

5. **CapEx Opportunities from Data Centers**  
   **Q:** Will data centers drive incremental CapEx?  
   **A:** While we're investing in last-mile infrastructure, we don't currently see data center growth pushing us beyond our existing CapEx plans.  **[PEG_3375052_10]**  We would signal any significant changes if they arise.  **[PEG_3375052_10]** 

6. **Rate Case Expectations**  
   **Q:** What lessons have you learned from recent rate proceedings?  
   **A:** New Jersey's regulatory process is consistent and effective.  **[PEG_3375052_9]**  We're not anticipating our upcoming rate case to be contentious.  **[PEG_3375052_9]**  Our case isn't as big as others, and we've provided affordable service over a period of inflation.  **[PEG_3375052_9]** 

7. **O&M Outlook for 2024**  
   **Q:** Any O&M pressures for 2024?  
   **A:** We don't see significant O&M pressures.  **[PEG_3375052_14]**  We have labor certainty with a 4-year union deal at **4% increase, then 3%, 3%, and 3%** in subsequent years.  **[PEG_3375052_14]**  Nuclear fuel costs are a small part of O&M and shouldn't materially impact us.  **[PEG_3375052_14]** 

8. **Energy Efficiency Filing Clarification**  
   **Q:** Can you clarify the $3.1 billion energy efficiency filing?  
   **A:** The $3.1 billion spending will occur over a **5- to 6-year** period, though commitments are made during a **2.5-year** triennial period from '25 to '27.  **[PEG_3375052_12]**  We expect a decision from the commission by **October** this year.  **[PEG_3375052_12]** 

9. **Affordability and Rate Headroom**  
   **Q:** What rate headroom do you see looking forward?  
   **A:** We focus on maintaining affordable bills rather than headroom.  **[PEG_3375052_11]**  With ZECs rolling off in May **2025**, about **$200 million** will come off PSEG customers and around **$300 million** across the state.  **[PEG_3375052_11]** 

10. **Time-of-Use Rates and EV Adoption**  
    **Q:** Are time-of-use rates being considered to attract data centers?  
    **A:** Time-of-use rates are more relevant for encouraging EV adoption.  **[PEG_3375052_15]**  We anticipate addressing this in the rate case to help customers with EVs.  **[PEG_3375052_15]** 

11. **Nuclear Opportunities Time Frame**  
    **Q:** Any particular time frame for nuclear opportunities?  
    **A:** No specific time frame.  **[PEG_3375052_8]**  Once we're a couple of years out and with ZECs in place through '25, we'll be able to look at plans.  **[PEG_3375052_8]** 

12. **Energy Efficiency Process Independence**  
    **Q:** Is the energy efficiency process separate from the rate case?  
    **A:** Yes, the energy efficiency filing is separate and independent from the rate case.  **[PEG_3375052_12]** 

94adedacae258f2482172e66c0d150af6572658c7dee4c12e74569aa0dd40e16

PUBLIC SERVICE ENTERPRISE GROUP INC (PEG)

Financials