[FORWARD-LOOKING STATEMENTS](index=4&type=section&id=FORWARD-LOOKING%20STATEMENTS) Forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially - Forward-looking statements are subject to risks and uncertainties, including regulatory approvals, climate change, equipment failures, supply chain, cybersecurity, and legislative changes, which could cause actual results to differ materially[10](index=10&type=chunk)[17](index=17&type=chunk) [FILING FORMAT](index=5&type=section&id=FILING%20FORMAT) The combined Form 10-Q is separately filed by Public Service Enterprise Group Incorporated (PSEG) and Public Service Electric and Gas Company (PSE&G), with each company responsible for its own information - This combined Quarterly Report on Form 10-Q is separately filed by Public Service Enterprise Group Incorporated (PSEG) and Public Service Electric and Gas Company (PSE&G), with each company responsible only for information about itself and its subsidiaries[15](index=15&type=chunk) [PART I. FINANCIAL INFORMATION](index=6&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This part presents the unaudited condensed consolidated financial statements and related disclosures for PSEG and its subsidiaries [Item 1. Financial Statements](index=6&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for Public Service Enterprise Group Incorporated (PSEG) and its wholly-owned subsidiary, Public Service Electric and Gas Company (PSE&G), along with detailed notes explaining the organization, accounting policies, revenues, trust investments, debt, and other financial aspects for the periods ended June 30, 2025, and December 31, 2024 [Public Service Enterprise Group Incorporated](index=6&type=section&id=Public%20Service%20Enterprise%20Group%20Incorporated) PSEG Condensed Consolidated Statements of Operations (Three Months Ended June 30) | Metric | 2025 (Millions) | 2024 (Millions) | | :----------------------------- | :-------------- | :-------------- | | Operating Revenues | $2,805 | $2,423 | | Operating Income | $817 | $582 | | Net Income | $585 | $434 | | Basic EPS | $1.17 | $0.87 | | Diluted EPS | $1.17 | $0.87 | PSEG Condensed Consolidated Statements of Operations (Six Months Ended June 30) | Metric | 2025 (Millions) | 2024 (Millions) | | :----------------------------- | :-------------- | :-------------- | | Operating Revenues | $6,027 | $5,183 | | Operating Income | $1,614 | $1,267 | | Net Income | $1,174 | $966 | | Basic EPS | $2.35 | $1.94 | | Diluted EPS | $2.35 | $1.93 | PSEG Condensed Consolidated Balance Sheets (As of June 30, 2025 vs. December 31, 2024) | Metric | June 30, 2025 (Millions) | December 31, 2024 (Millions) | | :----------------------------- | :----------------------- | :--------------------------- | | Total Assets | $56,024 | $54,640 | | Total Current Liabilities | $4,582 | $6,505 | | Long-Term Debt | $21,639 | $18,964 | | Total Stockholders' Equity | $16,671 | $16,114 | PSEG Condensed Consolidated Statements of Cash Flows (Six Months Ended June 30) | Metric | 2025 (Millions) | 2024 (Millions) | | :------------------------------------ | :-------------- | :-------------- | | Net Cash Provided By Operating Activities | $1,527 | $1,143 | | Net Cash Used In Investing Activities | $(1,388) | $(1,612) | | Net Cash Provided By (Used In) Financing Activities | $(78) | $515 | | Cash, Cash Equivalents and Restricted Cash at End of Period | $215 | $145 | [Public Service Electric and Gas Company](index=12&type=section&id=Public%20Service%20Electric%20and%20Gas%20Company) PSE&G Condensed Consolidated Statements of Operations (Three Months Ended June 30) | Metric | 2025 (Millions) | 2024 (Millions) | | :----------------------------- | :-------------- | :-------------- | | Operating Revenues | $2,031 | $1,863 | | Operating Income | $492 | $467 | | Net Income | $332 | $302 | PSE&G Condensed Consolidated Statements of Operations (Six Months Ended June 30) | Metric | 2025 (Millions) | 2024 (Millions) | | :----------------------------- | :-------------- | :-------------- | | Operating Revenues | $4,695 | $4,196 | | Operating Income | $1,206 | $1,150 | | Net Income | $878 | $790 | PSE&G Condensed Consolidated Balance Sheets (As of June 30, 2025 vs. December 31, 2024) | Metric | June 30, 2025 (Millions) | December 31, 2024 (Millions) | | :----------------------------- | :----------------------- | :--------------------------- | | Total Assets | $47,789 | $46,364 | | Total Current Liabilities | $3,199 | $3,198 | | Long-Term Debt | $15,091 | $14,648 | | Total Stockholder's Equity | $19,323 | $18,445 | PSE&G Condensed Consolidated Statements of Cash Flows (Six Months Ended June 30) | Metric | 2025 (Millions) | 2024 (Millions) | | :------------------------------------ | :-------------- | :-------------- | | Net Cash Provided By Operating Activities | $954 | $739 | | Net Cash Used In Investing Activities | $(1,265) | $(1,470) | | Net Cash Provided By Financing Activities | $294 | $703 | | Cash, Cash Equivalents and Restricted Cash at End of Period | $91 | $47 | [Notes to Condensed Consolidated Financial Statements](index=18&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) [Note 1. Organization, Basis of Presentation and Significant Accounting Policies](index=18&type=section&id=Note%201.%20Organization%2C%20Basis%20of%20Presentation%20and%20Significant%20Accounting%20Policies) This note describes PSEG's organizational structure as a public utility holding company with predominantly regulated electric and gas utility and nuclear generation businesses. It outlines the basis of presentation for the condensed consolidated financial statements, which are prepared in accordance with SEC rules for Form 10-Q, and details significant accounting policies, including those for cash, cash equivalents, restricted cash, and property, plant and equipment - PSEG is a public utility holding company with principal operating subsidiaries PSE&G (regulated electric and gas utility) and PSEG Power (nuclear generation and competitive energy sales)[47](index=47&type=chunk)[50](index=50&type=chunk) - PSEG Power revised the estimated useful lives for Salem 1, Salem 2, and Hope Creek nuclear plants effective April 2025, expecting a 20-year license extension, resulting in a **$160 million decrease** to ARC asset and ARO liability[55](index=55&type=chunk) [Note 2. Revenues](index=20&type=section&id=Note%202.%20Revenues) This note details the principal activities generating revenues for PSEG and its subsidiaries, distinguishing between revenues from contracts with customers (e.g., electric/gas distribution, transmission, electricity/gas sales) and revenues unrelated to contracts with customers (e.g., alternative revenue mechanisms, derivative contracts, lease revenues). It also provides a disaggregation of revenues by segment and type PSEG Consolidated Operating Revenues (Three Months Ended June 30) | Revenue Type | 2025 (Millions) | 2024 (Millions) | | :------------------------------------ | :-------------- | :-------------- | | Total Revenues from Contracts with Customers | $2,560 | $2,182 | | Revenues Unrelated to Contracts with Customers | $245 | $241 | | **Total Operating Revenues** | **$2,805** | **$2,423** | PSEG Consolidated Operating Revenues (Six Months Ended June 30) | Revenue Type | 2025 (Millions) | 2024 (Millions) | | :------------------------------------ | :-------------- | :-------------- | | Total Revenues from Contracts with Customers | $5,947 | $4,884 | | Revenues Unrelated to Contracts with Customers | $80 | $299 | | **Total Operating Revenues** | **$6,027** | **$5,183** | - PSEG Power's Salem 1, Salem 2, and Hope Creek nuclear plants concluded Zero Emission Certificate (ZEC) sales in May 2025, with revenue adjusted by estimated production tax credits (PTCs)[63](index=63&type=chunk)[64](index=64&type=chunk) - PSE&G's allowance for credit losses represented approximately **12% of accounts receivable** (including unbilled revenues) as of June 30, 2025, down from **13%** as of December 31, 2024[73](index=73&type=chunk) [Note 3. Variable Interest Entity (VIE)](index=25&type=section&id=Note%203.%20Variable%20Interest%20Entity%20(VIE)) This note explains PSEG LI's consolidation of Servco as a Variable Interest Entity (VIE), where PSEG LI is the primary beneficiary due to directing Servco's operations and having an obligation to absorb potential losses. Servco's operating costs are fully reimbursed by LIPA, limiting PSEG LI's risk - PSEG LI consolidates Servco as a VIE, acting as the primary beneficiary by directing operations and absorbing potential losses, though Servco's operating costs are fully reimbursed by LIPA, limiting PSEG LI's risk[83](index=83&type=chunk)[84](index=84&type=chunk) Servco O&M Expense and Reimbursement (Three and Six Months Ended June 30) | Period | 2025 (Millions) | 2024 (Millions) | | :-------------------- | :-------------- | :-------------- | | Three Months Ended | $155 | $142 | | Six Months Ended | $307 | $292 | [Note 4. Rate Filings](index=26&type=section&id=Note%204.%20Rate%20Filings) This note details significant regulatory orders and pending rate filings by PSE&G with the BPU or FERC. Key updates include final approvals for BGSS and CIP rates, pending requests for BGSS and CIP rate increases, approval of a $30 credit for residential electric customers in July-August 2025 due to higher capacity auction prices, and approvals for GSMP II Extension, GPRC, and IAP revenue increases - BPU approved a **$30 credit** to each residential electric customer's monthly bill for July-August 2025, with offsetting charges from September 2025-February 2026, due to increasing demand and significant price increases in the 2025/2026 PJM capacity auction[89](index=89&type=chunk) - PSE&G received BPU approval for an updated GSMP II Extension petition to recover **$49 million annually** in gas base rates effective August 1, 2025[90](index=90&type=chunk) - PSE&G filed its 2025 GPRC cost recovery petition requesting BPU approval for recovery of increases of **$207 million** and **$24 million** in annual electric and gas revenues, respectively[92](index=92&type=chunk) [Note 5. Financing Receivables](index=27&type=section&id=Note%205.%20Financing%20Receivables) This note describes PSE&G's Solar Loan Programs, which finance solar power systems, with loans repaid by SRECs. All outstanding solar loans were current as of June 30, 2025, with no recorded credit losses due to a regulatory recovery mechanism. Energy Holdings' leveraged lease investments, primarily in assets subject to leveraged lease accounting, are also detailed, with no credit losses recorded as of June 30, 2025 PSE&G Outstanding Solar Loans by Class of Customers (Millions) | Class of Customers | June 30, 2025 | December 31, 2024 | | :----------------- | :------------ | :---------------- | | Commercial/Industrial | $29 | $38 | | Residential | $2 | $2 | | **Total** | **$31** | **$40** | - PSE&G's Solar Loan Programs had no impaired loans as of June 30, 2025, with the basis of the solar loan recoverable through a regulatory recovery mechanism, thus no current credit losses were recorded[96](index=96&type=chunk) Energy Holdings' Net Investments in Leases (Millions) | Metric | June 30, 2025 | December 31, 2024 | | :----------------------- | :------------ | :---------------- | | Lease Receivables (net of Non-Recourse Debt) | $178 | $200 | | Unearned and Deferred Income | $(45) | $(50) | | Deferred Tax Liabilities | $(29) | $(33) | | **Net Investments in Leases** | **$104** | **$117** | [Note 6. Trust Investments](index=28&type=section&id=Note%206.%20Trust%20Investments) This note details PSEG Power's Nuclear Decommissioning Trust (NDT) Fund and PSEG's Rabbi Trust investments. It provides fair value measurements, unrealized gains/losses, and sales proceeds for securities held in both trusts. The NDT Fund saw significant net unrealized gains on equity securities in Q2 2025, while both trusts' debt securities experienced unrealized losses due to interest rate changes, but no credit losses were recognized NDT Fund Investments Fair Value (As of June 30, 2025) | Security Type | Fair Value (Millions) | | :-------------------------- | :-------------------- | | Equity Securities (Domestic) | $935 | | Equity Securities (International) | $562 | | Debt Securities (Government) | $769 | | Debt Securities (Corporate) | $555 | | **Total NDT Fund Investments** | **$2,821** | Net Gains (Losses) on NDT Fund (Three and Six Months Ended June 30) | Metric | 3 Months 2025 (Millions) | 3 Months 2024 (Millions) | 6 Months 2025 (Millions) | 6 Months 2024 (Millions) | | :------------------------------------ | :----------------------- | :----------------------- | :----------------------- | :----------------------- | | Net Realized Gains (Losses) | $15 | $29 | $34 | $46 | | Net Unrealized Gains (Losses) on Equity Securities | $79 | $(23) | $69 | $55 | | **Net Gains (Losses) on NDT Fund Investments** | **$94** | **$6** | **$103** | **$101** | - NDT Fund debt securities had unrealized losses due to interest rate changes, but no credit losses were recognized as PSEG Power does not intend to sell them before recovery of amortized cost[112](index=112&type=chunk) Rabbi Trust Investments Fair Value (As of June 30, 2025) | Security Type | Fair Value (Millions) | | :-------------------------- | :-------------------- | | Domestic Equity Securities | $17 | | Debt Securities (Government) | $86 | | Debt Securities (Corporate) | $61 | | **Total Rabbi Trust Investments** | **$164** | [Note 7. Pension and Other Postretirement Benefits (OPEB)](index=34&type=section&id=Note%207.%20Pension%20and%20Other%20Postretirement%20Benefits%20(OPEB)) This note outlines PSEG's and PSE&G's accounting for pension and OPEB plans, including the components of net periodic benefit costs. PSEG plans to contribute $5 million to its OPEB plan and up to $100 million to its pension plans in 2025. Servco's pension and OPEB costs are funded by LIPA and are separately presented PSEG Net Periodic Pension and OPEB Benefit Costs (Credits) (Six Months Ended June 30) | Metric | Pension Benefits 2025 (Millions) | Pension Benefits 2024 (Millions) | OPEB 2025 (Millions) | OPEB 2024 (Millions) | | :------------------------------------ | :------------------------------- | :------------------------------- | :------------------- | :------------------- | | Service Cost | $44 | $47 | $1 | $1 | | Non-Service Components | $(7) | $(13) | $0 | $2 | | **Total Net Benefit Costs (Credits)** | **$37** | **$34** | **$1** | **$3** | - PSEG plans to contribute **$5 million** to its OPEB plan and may choose to contribute up to **$100 million** to its pension plans in 2025[132](index=132&type=chunk) - Servco's pension and OPEB costs are funded by LIPA, with pension-related revenues and costs of **$12 million** and OPEB-related revenues and costs of **$7 million** for the six months ended June 30, 2025[134](index=134&type=chunk) [Note 8. Commitments and Contingent Liabilities](index=35&type=section&id=Note%208.%20Commitments%20and%20Contingent%20Liabilities) This note details PSEG Power's guaranteed obligations in commodity-related transactions, environmental matters including Superfund sites (Passaic River, Newark Bay, Hackensack River) and Manufactured Gas Plant (MGP) remediation, and other legal proceedings. It highlights the uncertainty of outcomes and potential material impacts on financial statements, particularly for environmental liabilities and ongoing litigation PSEG Power Outstanding Guarantees and Exposure (Millions) | Metric | June 30, 2025 | December 31, 2024 | | :----------------------------- | :-------------- | :---------------- | | Face Value of Outstanding Guarantees | $1,024 | $1,272 | | Exposure under Current Guarantees | $59 | $47 | | Letters of Credit - Counterparty Margining Posted | $19 | $4 | | Letters of Credit - Counterparty Margining Received | $9 | $24 | - PSEG has approximately **$66 million accrued** for the Passaic River Superfund matter as of June 30, 2025, with the outcome uncertain and potential for additional material costs[148](index=148&type=chunk)[149](index=149&type=chunk) - PSE&G's estimated cost to remediate all MGP sites could range between **$186 million** and **$210 million**, with a recorded liability of **$186 million** as of June 30, 2025, and a corresponding Regulatory Asset[153](index=153&type=chunk) - PSEG Power is subject to significant environmental liabilities at former fossil generating sites, including those under New Jersey ISRA and Connecticut Transfer Act, and the new Coal Combustion Residuals (CCR) Rule, with full remediation costs likely to be material[154](index=154&type=chunk)[155](index=155&type=chunk)[156](index=156&type=chunk) - The BGS-CIEP auction price for the year commencing June 1, 2025, increased to **$696.05 per MW-day**, replacing the prior year's price of **$378.21 per MW-day**[160](index=160&type=chunk) - The Zero Emission Certificate (ZEC) program for PSEG Power's Salem 1, Salem 2, and Hope Creek nuclear plants ended effective June 1, 2025, with the final ZEC payment to be settled in August 2025[163](index=163&type=chunk) [Note 9. Debt and Credit Facilities](index=41&type=section&id=Note%209.%20Debt%20and%20Credit%20Facilities) This note details PSEG's, PSE&G's, and PSEG Power's long-term debt financing transactions and short-term liquidity arrangements. In the first six months of 2025, PSEG issued $1 billion in senior notes, PSE&G issued $900 million in secured notes and retired $350 million, and PSEG Power issued $1.25 billion in senior unsecured notes and repaid a $1.25 billion term loan. All three entities extended their $3.75 billion revolving credit facilities through March 2029 - During the six months ended June 30, 2025, PSEG issued **$1 billion** in senior notes, PSE&G issued **$900 million** in secured notes and retired **$350 million**, and PSEG Power issued **$1.25 billion** in senior unsecured notes and repaid a **$1.25 billion** term loan[175](index=175&type=chunk) - PSEG, PSEG Power, and PSE&G executed a one-year extension to their existing **$3.75 billion revolving credit facilities**, extending the maturity through March 2029[172](index=172&type=chunk) Total Committed Credit Facilities and Available Liquidity (As of June 30, 2025) | Company/Facility | Total Facility (Millions) | Usage (Millions) | Available Liquidity (Millions) | | :--------------- | :------------------------ | :--------------- | :----------------------------- | | PSEG | $1,500 | $64 | $1,436 | | PSE&G | $1,000 | $225 | $775 | | PSEG Power | $1,325 | $82 | $1,243 | | **Total** | **$3,825** | **$371** | **$3,454** | [Note 10. Financial Risk Management Activities](index=42&type=section&id=Note%2010.%20Financial%20Risk%20Management%20Activities) This note discusses PSEG's financial risk management, primarily focusing on commodity price risk for PSEG Power and interest rate risk for PSEG, PSE&G, and PSEG Power. It details the use of derivative and non-derivative instruments for hedging, the fair values of these derivatives, and the impact on financial statements. It also addresses commodity credit risk, noting that 98% of PSEG Power's net credit exposure is with investment-grade counterparties - PSEG Power manages commodity price risk using a variety of derivative and non-derivative instruments, such as financial options, futures, and swaps, to manage exposure to fluctuations in commodity prices and optimize generation value[181](index=181&type=chunk) - PSEG uses interest rate hedges, designated and effective as cash flow hedges, to manage its exposure to the variability of cash flows related to variable-rate debt or anticipated future long-term debt issuances[183](index=183&type=chunk) Total Net Mark-to-Market Derivative Assets (Liabilities) (Millions) | Period | June 30, 2025 | December 31, 2024 | | :------------------------------------ | :-------------- | :---------------- | | PSEG Cash Flow Hedges | $(1) | $32 | | PSEG Power Not Designated Energy Related Contracts | $(86) | $(78) | | Netting (A) | $81 | $121 | | **Total Net Mark-to-Market Derivative Assets (Liabilities)** | **$(6)** | **$75** | - As of June 30, 2025, **98%** of the net credit exposure for PSEG Power's wholesale operations was with investment grade counterparties[200](index=200&type=chunk) - If PSEG Power were downgraded to a below investment grade rating, it would have had additional collateral obligations of **$30 million** as of June 30, 2025[192](index=192&type=chunk) [Note 11. Fair Value Measurements](index=47&type=section&id=Note%2011.%20Fair%20Value%20Measurements) This note explains PSEG's and PSE&G's fair value measurements, categorizing assets and liabilities into Level 1 (quoted prices in active markets), Level 2 (observable inputs other than Level 1), and Level 3 (unobservable inputs). It provides detailed tables of recurring fair value measurements for cash equivalents, derivative contracts, and trust investments, and also presents the fair value of long-term debt - Fair value measurements are categorized into a three-level hierarchy: Level 1 (quoted prices in active markets), Level 2 (quoted prices for similar assets/liabilities or other observable inputs), and Level 3 (unobservable inputs)[203](index=203&type=chunk)[204](index=204&type=chunk)[205](index=205&type=chunk) PSEG Recurring Fair Value Measurements (Assets as of June 30, 2025) | Description | Total (Millions) | Level 1 (Millions) | Level 2 (Millions) | Level 3 (Millions) | | :-------------------------- | :--------------- | :----------------- | :----------------- | :----------------- | | Cash Equivalents | $40 | $40 | $0 | $0 | | Energy-Related Contracts | $35 | $3 | $1,461 | $0 | | NDT Fund Equity Securities | $1,497 | $1,497 | $0 | $0 | | NDT Fund Debt Securities | $1,739 | $0 | $1,739 | $0 | | Rabbi Trust Equity Securities | $17 | $17 | $0 | $0 | | Rabbi Trust Debt Securities | $147 | $0 | $147 | $0 | - As of June 30, 2025, PSEG carried **$3.0 billion** of net assets measured at fair value on a recurring basis, of which **$1 million** of liabilities were measured using unobservable inputs (Level 3) and considered immaterial[217](index=217&type=chunk) Fair Value of Total Long-Term Debt (Millions) | Company | June 30, 2025 (Carrying Amount) | June 30, 2025 (Fair Value) | December 31, 2024 (Carrying Amount) | December 31, 2024 (Fair Value) | | :---------------- | :------------------------------ | :------------------------- | :-------------------------------- | :----------------------------- | | PSEG | $5,861 | $5,873 | $4,866 | $4,754 | | PSE&G | $15,541 | $14,111 | $14,998 | $13,337 | | PSEG Power | $1,237 | $1,281 | $1,250 | $1,250 | | **Total Long-Term Debt** | **$22,639** | **$21,265** | **$21,114** | **$19,341** | [Note 12. Net Other Income (Deductions)](index=52&type=section&id=Note%2012.%20Net%20Other%20Income%20(Deductions)) This note provides a breakdown of PSEG's Net Other Income (Deductions) by segment, including NDT Fund interest and dividends, Allowance for Funds Used During Construction (AFUDC), solar loan interest, and other interest and miscellaneous items PSEG Consolidated Net Other Income (Deductions) (Three Months Ended June 30) | Item | 2025 (Millions) | 2024 (Millions) | | :------------------------------------ | :-------------- | :-------------- | | NDT Fund Interest and Dividends | $25 | $23 | | Allowance for Funds Used During Construction | $10 | $9 | | Solar Loan Interest | $1 | $1 | | Other Interest | $12 | $12 | | Other | $(2) | $2 | | **Total Net Other Income (Deductions)** | **$46** | **$47** | PSEG Consolidated Net Other Income (Deductions) (Six Months Ended June 30) | Item | 2025 (Millions) | 2024 (Millions) | | :------------------------------------ | :-------------- | :-------------- | | NDT Fund Interest and Dividends | $45 | $40 | | Allowance for Funds Used During Construction | $21 | $20 | | Solar Loan Interest | $2 | $3 | | Other Interest | $19 | $19 | | Other | $(4) | $0 | | **Total Net Other Income (Deductions)** | **$83** | **$82** | [Note 13. Income Taxes](index=53&type=section&id=Note%2013.%20Income%20Taxes) This note reconciles PSEG's and PSE&G's reported income tax expense with the statutory federal income tax rate, detailing adjustments for state income taxes, NDT Fund, tax credits, and other items. It also discusses the impact of the Inflation Reduction Act (IRA), including the Corporate Alternative Minimum Tax (CAMT) and the Production Tax Credit (PTC) for nuclear generation, noting that PSEG is subject to CAMT in 2025 but did not record a PTC benefit due to estimated gross receipts exceeding the phase-out amount PSEG Income Tax Expense Reconciliation (Three Months Ended June 30) | Item | 2025 (Millions) | 2024 (Millions) | | :------------------------------------ | :-------------- | :-------------- | | Pre-Tax Income | $726 | $437 | | Tax Computed at Statutory Rate @ 21% | $152 | $92 | | Subtotal (Adjustments) | $(11) | $(89) | | **Total Income Tax Expense** | **$141** | **$3** | | **Effective Income Tax Rate** | **19.4%** | **0.7%** | - PSEG determined it is an applicable corporation and subject to the Corporate Alternative Minimum Tax (CAMT) in 2025, though the impact for the six months ended June 30, 2025, was not material[229](index=229&type=chunk) - PSEG did not record a Production Tax Credit (PTC) benefit during the three and six months ended June 30, 2025, as its estimated full-year 2025 gross receipts from nuclear operations are above the phase-out amount[231](index=231&type=chunk) [Note 14. Accumulated Other Comprehensive Income (Loss), Net of Tax](index=55&type=section&id=Note%2014.%20Accumulated%20Other%20Comprehensive%20Income%20(Loss)%2C%20Net%20of%20Tax) This note provides a reconciliation of PSEG's Accumulated Other Comprehensive Income (Loss) (AOCL), net of tax, detailing changes related to cash flow hedges, pension and OPEB plans, and available-for-sale securities for the three and six months ended June 30, 2025 and 2024 PSEG Accumulated Other Comprehensive Income (Loss) (As of June 30, 2025) | Item | Cash Flow Hedges (Millions) | Pension and OPEB Plans (Millions) | Available for-Sale Securities (Millions) | Total (Millions) | | :------------------------------------ | :-------------------------- | :-------------------------------- | :------------------------------- | :--------------- | | Balance as of December 31, 2024 | $36 | $(76) | $(93) | $(133) | | Net Current Period Other Comprehensive Income (Loss) | $(13) | $3 | $20 | $10 | | **Balance as of June 30, 2025** | **$23** | **$(73)** | **$(73)** | **$(123)** | Amounts Reclassified from AOCL to Statement of Operations (Six Months Ended June 30, 2025) | Description | Location in Statement of Operations | Pre-Tax Amount (Millions) | Tax (Expense) Benefit (Millions) | After-Tax Amount (Millions) | | :------------------------------------ | :-------------------------------- | :------------------------ | :------------------------------- | :-------------------------- | | Interest Rate Derivatives | Interest Expense | $2 | $(1) | $1 | | Net Actuarial Loss (Pension/OPEB) | Net Non-Operating Pension and OPEB Credits (Costs) | $(4) | $1 | $(3) | | Realized Gains (Losses) on Trust Investments | Net Gains (Losses) on Trust Investments | $(4) | $1 | $(3) | | **Total** | | **$(6)** | **$1** | **$(5)** | [Note 15. Earnings Per Share (EPS) and Dividends](index=57&type=section&id=Note%2015.%20Earnings%20Per%20Share%20(EPS)%20and%20Dividends) This note provides the calculation of basic and diluted Earnings Per Share (EPS) for PSEG, along with information on common stock dividends. For the six months ended June 30, 2025, diluted EPS was $2.35, up from $1.93 in the prior year. PSEG's Board of Directors approved a $0.63 per share common stock dividend for the third quarter of 2025 PSEG EPS (Six Months Ended June 30) | Metric | 2025 (Millions) | 2024 (Millions) | | :----------------------------- | :-------------- | :-------------- | | Net Income | $1,174 | $966 | | Weighted Average Common Shares Outstanding | 499 | 498 | | Effect of Stock Based Compensation Awards | 1 | 2 | | Total Shares (Diluted) | 500 | 500 | | **Diluted EPS** | **$2.35** | **$1.93** | PSEG Common Stock Dividends (Six Months Ended June 30) | Metric | 2025 | 2024 | | :----------------------------- | :----- | :----- | | Per Share | $1.26 | $1.20 | | In Millions | $629 | $598 | - On July 21, 2025, PSEG's Board of Directors approved a **$0.63 per share** common stock dividend for the third quarter of 2025[238](index=238&type=chunk) [Note 16. Financial Information by Business Segment](index=57&type=section&id=Note%2016.%20Financial%20Information%20by%20Business%20Segment) This note provides financial information by PSEG's two reportable segments: PSE&G (regulated electric transmission and electric/gas distribution) and PSEG Power & Other (merchant nuclear generation, energy sales, and other subsidiaries like PSEG LI and Energy Holdings). It details operating revenues, expenses, and net income for each segment, highlighting intercompany eliminations PSEG Consolidated Net Income by Segment (Three Months Ended June 30) | Segment | 2025 (Millions) | 2024 (Millions) | | :-------------------- | :-------------- | :-------------- | | PSE&G | $332 | $302 | | PSEG Power & Other | $253 | $132 | | **Consolidated Total** | **$585** | **$434** | PSEG Consolidated Net Income by Segment (Six Months Ended June 30) | Segment | 2025 (Millions) | 2024 (Millions) | | :-------------------- | :-------------- | :-------------- | | PSE&G | $878 | $790 | | PSEG Power & Other | $296 | $176 | | **Consolidated Total** | **$1,174** | **$966** | PSEG Total Assets by Segment (As of June 30, 2025 vs. December 31, 2024) | Segment | June 30, 2025 (Millions) | December 31, 2024 (Millions) | | :-------------------- | :----------------------- | :--------------------------- | | PSE&G | $47,789 | $46,364 | | PSEG Power & Other | $8,652 | $8,673 | | Eliminations | $(417) | $(397) | | **Consolidated Total** | **$56,024** | **$54,640** | [Note 17. Related-Party Transactions](index=60&type=section&id=Note%2017.%20Related-Party%20Transactions) This note details intercompany transactions between PSE&G and its affiliates, primarily PSEG Power and Services, which are eliminated during PSEG's consolidation. These include billings for gas supply services, ZEC sales, administrative services, and tax allocations PSE&G Billings from Affiliates (Six Months Ended June 30) | Item | 2025 (Millions) | 2024 (Millions) | | :------------------------------------ | :-------------- | :-------------- | | Net Billings from PSEG Power | $676 | $567 | | Administrative Billings from Services | $243 | $253 | | **Total Billings from Affiliates** | **$919** | **$820** | - PSE&G has a requirements contract with PSEG Power for gas supply services and previously purchased Zero Emission Certificates (ZECs) from PSEG Power's nuclear units, with rates prescribed by the BPU[251](index=251&type=chunk) - PSEG and its subsidiaries file a consolidated federal income tax return, with income taxes allocated to subsidiaries on a stand-alone basis[251](index=251&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=61&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides a comprehensive discussion of PSEG's financial condition and results of operations, highlighting strategic focus on regulated investments and nuclear generation, key financial performance drivers, regulatory and legislative developments, and future outlook. It details the company's capital investment plans, efforts to manage risks, and challenges in a dynamic energy landscape [Executive Overview of 2025 and Future Outlook](index=61&type=section&id=Executive%20Overview%20of%202025%20and%20Future%20Outlook) - PSEG's business plan focuses on achieving growth by allocating capital primarily toward regulated investments to improve sustainability and predictability, and realizing value from consistent, reliable carbon-free nuclear generation[255](index=255&type=chunk) - The regulated capital investment program for 2025-2029 is estimated to be in a range of **$21 billion to $24 billion**, expected to result in a compound annual growth rate in regulated rate base of **6% to 7.5%**[257](index=257&type=chunk) - PSEG Power revised the estimated useful lives for Salem 1, Salem 2, and Hope Creek nuclear plants effective April 2025, due to the expectation of a 20-year license extension, and its hedging strategy incorporates the estimated risk reduction impacts from Production Tax Credits (PTCs)[262](index=262&type=chunk) - PSEG has established a net zero greenhouse gas (GHG) emissions by **2030 goal** for direct (Scope 1) and indirect (Scope 2) GHG emissions across its business operations[263](index=263&type=chunk) - PJM awarded PSEG an approximately **$424 million transmission project** in Maryland and northern Virginia, expected to be placed in service in 2027[267](index=267&type=chunk) - The LIPA board of trustees voted to begin negotiations to extend PSEG LI's current contract as operations service provider, which runs through December 31, 2025[270](index=270&type=chunk) PSEG Net Income (Three and Six Months Ended June 30) | Metric | 3 Months 2025 (Millions) | 3 Months 2024 (Millions) | 6 Months 2025 (Millions) | 6 Months 2024 (Millions) | | :----------------------------- | :----------------------- | :----------------------- | :----------------------- | :----------------------- | | PSE&G Net Income | $332 | $302 | $878 | $790 | | PSEG Power & Other Net Income | $253 | $132 | $296 | $176 | | **PSEG Net Income** | **$585** | **$434** | **$1,174** | **$966** | | PSEG Net Income Per Share (Diluted) | $1.17 | $0.87 | $2.35 | $1.93 | Net Income Variance Attributable to NDT Fund and MTM (Millions, After Tax) | Metric | 3 Months 2025 | 3 Months 2024 | 6 Months 2025 | 6 Months 2024 | | :------------------------------------ | :-------------- | :-------------- | :-------------- | :-------------- | | NDT Fund and Related Activity | $65 | $8 | $71 | $65 | | Non-Trading MTM Gains (Losses) | $136 | $114 | $1 | $(72) | - PSEG's Net Income variance was primarily driven by higher earnings due to continued investments in T&D clause programs and the 2024 distribution base rate case settlement at PSE&G, combined with changes related to mark-to-market (MTM) and Nuclear Decommissioning Trust (NDT) Fund activity[273](index=273&type=chunk) - PSE&G continues to earn a **50 basis point adder** to its base ROE for PJM membership, but certain regulatory or legislative actions could lead to its loss, potentially reducing annual Net Income and cash inflows by approximately **$40 million**[275](index=275&type=chunk) - New Jersey's executive orders establish or accelerate 2030/2035 targets for clean-sourced energy, building decarbonization, and EV adoption, with ongoing stakeholder proceedings to develop implementation plans[277](index=277&type=chunk) - The nuclear Zero Emission Certificate (ZEC) sales concluded in May 2025, with the federal Production Tax Credit (PTC) for nuclear energy (effective 2024-2032) impacting PSEG Power's decision not to apply for the next ZEC eligibility period[280](index=280&type=chunk) - Higher PJM capacity auction prices led to a BPU-approved **$30 credit** for residential electric customers in July-August 2025, with offsetting charges later, and a new state law prohibits disconnections for non-payment during summer months (June 15-August 31) starting in 2026[281](index=281&type=chunk)[282](index=282&type=chunk) - The Inflation Reduction Act (IRA) enacted a **15% corporate alternative minimum tax (CAMT)** and a Production Tax Credit (PTC) for existing qualified nuclear facilities, with ongoing uncertainty regarding authoritative guidance[288](index=288&type=chunk) - PSEG's future success depends on executing its utility capital investment program, obtaining fair returns, controlling costs, managing energy policies, advocating for nuclear PTCs, engaging stakeholders, and developing its workforce[289](index=289&type=chunk)[292](index=292&type=chunk) - Key challenges include regulatory and political uncertainty, financial market performance, cost management, cybersecurity threats, tax law changes, and the impact of energy demand and prices[290](index=290&type=chunk) [Results of Operations](index=68&type=section&id=Results%20of%20Operations) PSEG Consolidated Results of Operations (Three Months Ended June 30) | Metric | 2025 (Millions) | 2024 (Millions) | Increase/(Decrease) (Millions) | Increase/(Decrease) (%) | | :----------------------------- | :-------------- | :-------------- | :----------------------------- | :---------------------- | | Operating Revenues | $2,805 | $2,423 | $382 | 16 | | Energy Costs | $826 | $732 | $94 | 13 | | Operation and Maintenance | $854 | $824 | $30 | 4 | | Depreciation and Amortization | $308 | $285 | $23 | 8 | | Net Gains (Losses) on Trust Investments | $95 | $7 | $88 | N/A | | Interest Expense | $248 | $218 | $30 | 14 | | Income Tax Expense (Benefit) | $141 | $3 | $138 | N/A | PSEG Consolidated Results of Operations (Six Months Ended June 30) | Metric | 2025 (Millions) | 2024 (Millions) | Increase/(Decrease) (Millions) | Increase/(Decrease) (%) | | :----------------------------- | :-------------- | :-------------- | :----------------------------- | :---------------------- | | Operating Revenues | $6,027 | $5,183 | $844 | 16 | | Energy Costs | $2,012 | $1,729 | $283 | 16 | | Operation and Maintenance | $1,773 | $1,607 | $166 | 10 | | Depreciation and Amortization | $628 | $580 | $48 | 8 | | Net Gains (Losses) on Trust Investments | $103 | $102 | $1 | 1 | | Interest Expense | $489 | $423 | $66 | 16 | | Income Tax Expense (Benefit) | $169 | $100 | $69 | 69 | - PSE&G's Operating Revenues increased by **$168 million** for the three months and **$499 million** for the six months ended June 30, 2025, primarily due to increases in electric and gas revenues from the 2024 distribution base rate case settlement and higher transmission revenues[296](index=296&type=chunk)[298](index=298&type=chunk)[306](index=306&type=chunk)[308](index=308&type=chunk) - PSEG Power & Other Operating Revenues increased by **$235 million** for the three months and **$455 million** for the six months ended June 30, 2025, driven by higher generation revenues (due to higher average realized prices, volumes, and MTM gains) and increased gas supply revenues[316](index=316&type=chunk)[318](index=318&type=chunk)[322](index=322&type=chunk)[324](index=324&type=chunk) - PSEG Power & Other's Net Gains (Losses) on Trust Investments increased by **$88 million** for the three months ended June 30, 2025, primarily due to **$79 million** in net unrealized gains on NDT equity securities[320](index=320&type=chunk) - PSEG Power & Other's Depreciation decreased by **$5 million** for the three months ended June 30, 2025, due to revised estimated useful lives for the Salem and Hope Creek nuclear plants based on expected license extensions[319](index=319&type=chunk) [Liquidity and Capital Resources](index=73&type=section&id=Liquidity%20and%20Capital%20Resources) - Operating cash flows, combined with cash on hand and financing activities, are expected to be sufficient to fund planned capital expenditures and shareholder dividends[326](index=326&type=chunk) - For the six months ended June 30, 2025, operating cash flow increased **$384 million**, primarily due to a net change at PSE&G, higher earnings at PSEG Power, and tax refunds[327](index=327&type=chunk) - PSE&G's operating cash flow increased **$215 million** for the six months ended June 30, 2025, driven by changes in materials and supplies inventory, regulatory deferrals, and timing of vendor payments[328](index=328&type=chunk) - PSEG, PSEG Power, and PSE&G extended their **$3.75 billion revolving credit facilities** through March 2029, with total available liquidity of **$3.454 billion** as of June 30, 2025[331](index=331&type=chunk)[332](index=332&type=chunk) - PSEG's liquidity position is expected to be sufficient to meet projected stressed requirements over a 12-month planning horizon, even considering potential additional collateral of **$671 million** if PSEG Power were to lose its investment grade credit rating[333](index=333&type=chunk)[334](index=334&type=chunk) - PSEG has **$550 million** of Senior Notes maturing in August 2025, and PSE&G has **$450 million** of Secured Medium-Term Notes maturing in March 2026[338](index=338&type=chunk) [Capital Requirements](index=75&type=section&id=Capital%20Requirements) - All capital requirements over the next three years are expected to be met through a combination of internally generated funds and external debt financing, with no material changes to projected capital expenditures compared to the 2024 Form 10-K[341](index=341&type=chunk) - During the six months ended June 30, 2025, PSE&G made capital expenditures of **$1,279 million**, primarily for T&D system reliability, and PSEG Power & Other made **$87 million** in capital expenditures, excluding **$80 million** for nuclear fuel[342](index=342&type=chunk)[343](index=343&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=76&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section discusses PSEG's exposure to market risks from commodity prices, equity security prices, and interest rates, and its policy to manage these risks using derivatives. It also addresses counterparty credit risk and details the use of Value-at-Risk (VaR) models to estimate potential losses in commodity businesses, noting that MTM VaR varied between $37 million and $61 million (95% confidence level) from April to June 2025 - PSEG is exposed to market risks from adverse changes in commodity prices, equity security prices, and interest rates, and uses derivatives to manage these risks consistent with business plans and prudent practices[345](index=345&type=chunk) - The Mark-to-Market (MTM) Value-at-Risk (VaR) for PSEG's commodity businesses varied between a low of **$37 million** and a high of **$61 million** at the **95% confidence level** from April through June 2025[350](index=350&type=chunk)[351](index=351&type=chunk) - PSEG is exposed to counterparty credit losses and employs a credit management process to assess, monitor, and mitigate this risk[346](index=346&type=chunk) [Item 4. Controls and Procedures](index=77&type=section&id=Item%204.%20Controls%20and%20Procedures) This section confirms that PSEG and PSE&G maintain effective disclosure controls and procedures, as evaluated by their respective CEOs and CFOs, to ensure timely and accurate reporting of information required under the Exchange Act. It also states that there have been no material changes in internal control over financial reporting during the second quarter of 2025 - PSEG and PSE&G maintain effective disclosure controls and procedures, evaluated by their CEOs and CFOs, to provide reasonable assurance that required information is recorded, processed, summarized, and reported timely[352](index=352&type=chunk) - There have been no changes in internal control over financial reporting during the second quarter of 2025 that have materially affected, or are reasonably likely to materially affect, each registrant's internal control over financial reporting[353](index=353&type=chunk) [PART II. OTHER INFORMATION](index=78&type=section&id=PART%20II.%20OTHER%20INFORMATION) This part provides additional information including legal proceedings, risk factors, other disclosures, and a list of exhibits [Item 1. Legal Proceedings](index=78&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to Part I, Item 1. Note 8 for information regarding material legal proceedings, including updates to information reported in Item 3 of Part I of the Form 10-K - Information regarding material legal proceedings, including updates to previously reported information, is provided in Part I, Item 1. Note 8. Commitments and Contingent Liabilities[356](index=356&type=chunk) [Item 1A. Risk Factors](index=78&type=section&id=Item%201A.%20Risk%20Factors) This section directs readers to Part I, Item 1A of the Form 10-K for a comprehensive discussion of risk factors that could materially impact PSEG's business, prospects, financial position, results of operations, or cash flows - The discussion of business and operations in this Quarterly Report should be read together with the risk factors contained in Part I, Item 1A of the Form 10-K[357](index=357&type=chunk) [Item 5. Other Information](index=78&type=section&id=Item%205.%20Other%20Information) This section provides updates on new matters since the last Form 10-K and Q1 2025 Form 10-Q filing. It notes no Rule 10b5-1 or non-Rule 10b5-1 trading plan adoptions/terminations/modifications by directors/officers. It also details FERC's elimination of reactive power compensation (not expected to be material) and PJM's selection of PSEG Nuclear's Salem uprate project for accelerated interconnection. State regulatory updates include BPU approvals for CEF-EE II and amendments to interconnection rules for grid modernization - No Rule 10b5-1 or non-Rule 10b5-1 trading plan adoptions, terminations, or modifications by PSEG's officers or directors occurred during the three months ended June 30, 2025[359](index=359&type=chunk) - FERC approved the elimination of reactive power compensation, effective June 1, 2026, which is not expected to have a material impact on PSEG's results of operations[360](index=360&type=chunk) - PJM selected PSEG Nuclear's Salem uprate project for its accelerated interconnection cycle in May 2025[361](index=361&type=chunk) - The BPU approved an approximate **$2.9 billion extension** of the CEF-EE program for projects committed between January 1, 2025, through June 30, 2027, and amended interconnection rules to speed up renewable resource integration[363](index=363&type=chunk)[364](index=364&type=chunk) [Item 6. Exhibits](index=79&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including certifications by Ralph LaRossa and Daniel J. Cregg, Inline XBRL documents, and the Cover Page Interactive Data File for both PSEG and PSE&G - Exhibits filed include certifications by Ralph LaRossa and Daniel J. Cregg (Exhibits 31 and 32), Inline XBRL Instance and Taxonomy Extension Schema documents (Exhibit 101), and the Cover Page Interactive Data File (Exhibit 104) for both PSEG and PSE&G[365](index=365&type=chunk) [Signatures](index=80&type=section&id=Signatures) This section contains the official signatures of the authorized officers for the filing of this report - The report was signed by Rose M. Chernick, Vice President and Controller (Principal Accounting Officer), on behalf of both Public Service Enterprise Group Incorporated and Public Service Electric and Gas Company on August 5, 2025[367](index=367&type=chunk)[369](index=369&type=chunk)

Financial Data and Key Metrics Changes - PSEG reported net income of $1.17 per share for Q2 2025, compared to $0.87 per share in Q2 2024, reflecting a significant increase [17] - Non-GAAP operating earnings were $0.77 per share in Q2 2025, up from $0.63 per share in Q2 2024, marking over a 20% increase year-over-year [17][18] - For the year-to-date ending June 30, 2025, net income was $878 million, compared to $790 million in 2024 [18] Business Line Data and Key Metrics Changes - PSEG's utility segment reported net income and non-GAAP operating earnings of $332 million for Q2 2025, compared to $300 million in Q2 2024 [18] - PSEG Power and Other reported net income of $253 million in Q2 2025, up from $132 million in Q2 2024, with non-GAAP operating earnings increasing to $52 million from $11 million [22][23] - The nuclear fleet produced approximately 7.5 terawatt hours in Q2 2025, an increase of 0.5 terawatt hours compared to the same period in 2024 [23] Market Data and Key Metrics Changes - The temperature humidity index was 21% warmer than normal but 14% cooler than in 2024, impacting electricity demand [21] - PSEG's pipeline of large load inquiries for new service connections grew to over 9,400 megawatts, up 47% from 6,400 megawatts reported as of March 31 [12] Company Strategy and Development Direction - PSEG is focused on a $3.8 billion regulated capital investment program for 2025 aimed at infrastructure modernization and reliability [6][11] - The company is also pursuing a five-year capital spending plan of $21 billion to $24 billion through 2029, supporting a projected rate base CAGR of 6% to 7.5% [15][16] - PSEG is advocating for legislative decisions in New Jersey regarding energy affordability and resource adequacy, emphasizing the need for new generation capacity [33][41] Management's Comments on Operating Environment and Future Outlook - Management highlighted the importance of balancing reliability, affordability, and environmental policies in ongoing discussions with New Jersey legislators [33][41] - The company anticipates a near-flat impact on customer electric bills despite recent capacity price increases, due to other supply-related costs expected to decrease [9][10] - PSEG reiterated its full-year 2025 non-GAAP operating earnings guidance of $3.94 to $4.06 per share, reflecting a 9% increase at the midpoint over 2024 results [15][26] Other Important Information - PSEG's total available liquidity as of June 30 was $3.6 billion, including $186 million in cash [25] - Recent federal tax legislation preserved the nuclear production tax credit and extended 100% bonus depreciation for qualified business property, improving cash flow [26] Q&A Session Summary Question: Update on New Jersey Resource Adequacy Conference - Management indicated ongoing discussions regarding future generation build in New Jersey, emphasizing the need for state decisions on reliability and affordability targets [31][33] Question: Data Center Pipeline and Nuclear Plant Opportunities - Management noted a significant increase in data center inquiries, with ongoing discussions about nuclear plant opportunities across New Jersey and Pennsylvania [34][36] Question: New Generation Needs in New Jersey - Management acknowledged the need for new generation capacity in New Jersey, emphasizing the state's reliance on power imports [41][43] Question: Impact of Capacity Auction Results - Management confirmed that while capacity auction results are important, they maintain their guidance based on the nuclear production tax credit threshold [45][46] Question: Affordability-Focused Bills - Management stated that while several affordability-focused bills were discussed, no specific bill is currently prioritized as the legislature is not scheduled to reconvene soon [62][63] Question: Incremental Generation Potential from Nuclear Upgrades - Management confirmed that engineering work for nuclear upgrades is ongoing, with plans for a 24-month fuel cycle at Hope Creek [66] Question: Large Load Inquiries Conversion Rate - Management confirmed that the conversion rate for large load inquiries remains at 10% to 20%, primarily driven by data center projects [73]

Financial Data and Key Metrics Changes - PSEG reported net income of $1.17 per share for Q2 2025, compared to $0.87 per share in Q2 2024, reflecting a 34% increase [17] - Non-GAAP operating earnings were $0.77 per share in Q2 2025, up from $0.63 per share in Q2 2024, marking a 22% increase [17] - For the year-to-date ending June 30, 2025, net income was $878 million, compared to $790 million in 2024 [18] Business Line Data and Key Metrics Changes - PSEG's utility segment reported net income of $332 million for Q2 2025, compared to $300 million in Q2 2024 [18] - PSEG Power and Other reported net income of $253 million in Q2 2025, up from $132 million in Q2 2024 [22] - The nuclear fleet produced approximately 7.5 terawatt hours in Q2 2025, an increase of 0.5 terawatt hours compared to the same period in 2024 [23] Market Data and Key Metrics Changes - The summer peak load reached 10,229 megawatts on June 24, 2025, the highest since 2013 [6] - The capacity auction results showed a price of $329 per megawatt day for the 2026-2027 energy year, up from $270 per megawatt day in the previous auction [24] Company Strategy and Development Direction - PSEG is focused on a $3.8 billion regulated capital investment program for 2025, aimed at infrastructure modernization and reliability [5][20] - The company is advocating for legislative decisions regarding energy affordability and resource adequacy in New Jersey [33] - PSEG's five-year capital spending plan is reaffirmed at $21 billion to $24 billion, supporting a projected rate base CAGR of 6% to 7.5% through 2029 [15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the full-year 2025 non-GAAP operating earnings guidance of $3.94 to $4.06 per share, which is a 9% increase at the midpoint over 2024 results [15][26] - The management highlighted the importance of balancing affordability, reliability, and environmental policies in ongoing discussions with New Jersey legislators [96] Other Important Information - PSEG's total available liquidity as of June 30, 2025, was $3.6 billion, including $186 million in cash [25] - The company plans to execute its capital plan without the need to issue new equity or sell assets [26] Q&A Session Summary Question: Update on New Jersey Resource Adequacy Conference - Management indicated ongoing discussions without significant legislative changes at this time, emphasizing the need for decisions on reliability, affordability, and environmental goals [31][33] Question: Data Center Pipeline and Nuclear Plant Opportunities - Management noted increased interest in data centers in New Jersey, with ongoing discussions about nuclear plant opportunities [34][36] Question: New Generation in New Jersey - Management reiterated the need for new generation capacity in New Jersey, emphasizing the impact of neighboring states on local supply [41][43] Question: Capacity Auction Results and Future Projections - Management confirmed that guidance remains at the nuclear PTC floor, monitoring market conditions for future adjustments [45][46] Question: Affordability-Focused Bills - Management stated that no specific bills are currently prioritized, focusing instead on broader solutions for customer affordability [62][64] Question: Incremental Generation Potential - Management confirmed that engineering work for upgrades and refueling cycles is ongoing, with plans for future announcements [66][68]

Financial Performance - PSEG's Q2 2025 net income was $585 million, or $1.17 per share, compared to $434 million in Q2 2024[21, 12] - PSEG's Q2 2025 non-GAAP operating earnings were $384 million, or $0.77 per share[21, 12] - For the first half of 2025, PSEG's net income was $1.174 billion, compared to $966 million for the same period in 2024[26] - PSEG reaffirms its full-year 2025 non-GAAP operating earnings guidance of $3.94 to $4.06 per share, representing approximately a 9% increase at the midpoint over 2024 results[14, 15] Capital Investment and Growth - PSE&G invested approximately $0.9 billion in Q2 2025 and approximately $1.7 billion year-to-date, with a regulated capital investment program of approximately $3.8 billion for 2025 on track[12, 34] - PSEG's regulated capital investment program for 2025-2029 is projected to be $21 billion to $24 billion, driven by infrastructure modernization, energy efficiency, and growing customer demand[12] - PSEG anticipates a long-term non-GAAP earnings growth outlook of 5%-7%, based on the midpoint of the 2025 guidance range[18] - Approximately 90% of PSEG's projected non-GAAP operating earnings over the 2025-2029 period are expected to come from PSE&G[18] PSE&G Operations and Regulatory Updates - PSE&G successfully managed a summer peak load of 10,229 MW on June 24th, the highest system load since 2013[12] - PSE&G's residential electric and gas customer count each grew by approximately 1% for the trailing 12 months ended June 30, 2025[35] - The BPU approved an annual revenue increase of $49 million for investments under the GSMP II Extension, effective August 1, 2025, and $9 million for investments under IAP, effective May 1, 2025[35] PSEG Power and Nuclear Generation - PSEG Nuclear achieved a capacity factor of 88.8% for Q2 2025 and 94.3% year-to-date[12, 37] - Total nuclear generation is forecasted to be 30-32 TWh for 2025[42]

Financial Performance - For the quarter ended June 2025, PSEG reported revenue of $2.81 billion, up 15.8% year-over-year, and EPS of $0.77, compared to $0.63 in the same quarter last year [1] - The reported revenue exceeded the Zacks Consensus Estimate of $2.34 billion, representing a surprise of +19.62%, while the EPS surprise was +8.45% against a consensus estimate of $0.71 [1] Key Metrics - PSEG's shares returned +9.5% over the past month, outperforming the Zacks S&P 500 composite's +1% change [3] - Gas sold and transported totaled 702.00 MDth, exceeding the average estimate of 542.52 MDth [4] - Electric sales were reported at 9,455.00 KWH, below the estimated 10,225.33 KWH [4] - Revenue from PSE&G was $2.03 billion, surpassing the estimated $1.97 billion, reflecting a +9% change year-over-year [4] - Revenue from PSEG Power & Other was $920 million, significantly higher than the estimated $453.29 million, marking a +34.5% year-over-year change [4] - Operating income for Power & Other was $325 million, compared to the average estimate of $72.68 million [4]

Company Performance - PSEG reported quarterly earnings of $0.77 per share, exceeding the Zacks Consensus Estimate of $0.71 per share, and up from $0.63 per share a year ago, indicating a positive earnings surprise of +8.45% [1][2] - The company posted revenues of $2.81 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 19.62% and increasing from $2.42 billion year-over-year [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.03 on revenues of $2.74 billion, and for the current fiscal year, it is $4.01 on revenues of $10.68 billion [8] - The estimate revisions trend for PSEG was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, suggesting it is expected to perform in line with the market in the near future [7] Industry Context - PSEG operates within the Utility - Electric Power industry, which is currently ranked in the top 33% of over 250 Zacks industries, indicating a favorable industry outlook [9] - The performance of PSEG's stock may be influenced by the overall industry outlook, as research shows that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [9]

[PSEG Announces Second Quarter 2025 Results](index=1&type=section&id=PSEG%20Announces%20Second%20Quarter%202025%20Results) PSEG reported strong financial results for Q2 and H1 2025, maintaining full-year guidance and highlighting operational successes and strategic developments [1.1 Financial Highlights](index=1&type=section&id=1.1%20Financial%20Highlights) PSEG reported strong financial performance for both the second quarter and first half of 2025, with significant increases in Net Income and Non-GAAP Operating Earnings, driven by operational efficiencies and strategic investments [1.1.1 Second Quarter Comparative Results](index=1&type=section&id=1.1.1%20Second%20Quarter%20Comparative%20Results) Second quarter 2025 results show substantial growth in Net Income and Non-GAAP Operating Earnings per share compared to 2024 | Metric | 2025 ($ millions) | 2024 ($ millions) | Change ($ millions) | Change (%) | 2025 EPS | 2024 EPS | Change (EPS) | Change (EPS %) | | :---------------------- | :---------------- | :---------------- | :------------------ | :--------- | :------- | :------- | :----------- | :------------- | | Net Income | $585 | $434 | $151 | 34.8% | $1.17 | $0.87 | $0.30 | 34.5% | | Non-GAAP Operating Earnings | $384 | $313 | $71 | 22.7% | $0.77 | $0.63 | $0.14 | 22.2% | | Average Shares Outstanding (Diluted) | 500 | 500 | 0 | 0.0% | | | | | [1.1.2 Six Months Ended June 30 Comparative Results](index=1&type=section&id=1.1.2%20Six%20Months%20Ended%20June%2030%20Comparative%20Results) Year-to-date June 30, 2025, results demonstrate significant increases in Net Income and Non-GAAP Operating Earnings | Metric | 2025 ($ millions) | 2024 ($ millions) | Change ($ millions) | Change (%) | 2025 EPS | 2024 EPS | Change (EPS) | Change (EPS %) | | :---------------------- | :---------------- | :---------------- | :------------------ | :--------- | :------- | :------- | :----------- | :------------- | | Net Income | $1,174 | $966 | $208 | 21.5% | $2.35 | $1.93 | $0.42 | 21.8% | | Non-GAAP Operating Earnings | $1,102 | $970 | $132 | 13.6% | $2.20 | $1.94 | $0.26 | 13.4% | | Average Shares Outstanding (Diluted) | 500 | 500 | 0 | 0.0% | | | | | [1.2 Management Commentary & Outlook](index=1&type=section&id=1.2%20Management%20Commentary%20%26%20Outlook) CEO Ralph LaRossa expressed confidence in achieving full-year 2025 non-GAAP Operating Earnings guidance, supported by new distribution rates and nuclear plant optimization efforts. The company also highlighted successful operational management during peak demand and new customer relief initiatives [1.2.1 CEO Statement on Performance and Guidance](index=1&type=section&id=1.2.1%20CEO%20Statement%20on%20Performance%20and%20Guidance) PSEG reaffirms its 2025 Non-GAAP Operating Earnings guidance and outlines strategic investment and nuclear optimization plans - PSEG maintains its 2025 Non-GAAP Operating Earnings guidance of **$3.94 - $4.06 per share**, representing a **9% increase** at the midpoint over 2024 results[1](index=1&type=chunk)[5](index=5&type=chunk) - The company is on track to execute its full-year, **$3.8 billion** regulated investment program[6](index=6&type=chunk) - PSEG aims to grow its existing **5% to 7%** compound annual growth outlook for non-GAAP Operating Earnings over the 2025 to 2029 period[6](index=6&type=chunk) - An upcoming refueling outage at the Hope Creek nuclear unit will extend its fuel cycle from 18 to 24 months, optimizing plants for reliable, carbon-free power[5](index=5&type=chunk)[6](index=6&type=chunk) [1.2.2 Operational Highlights and Customer Initiatives](index=2&type=section&id=1.2.2%20Operational%20Highlights%20and%20Customer%20Initiatives) PSEG successfully managed peak summer demand and implemented customer relief initiatives to support residential users - PSEG successfully operated through three consecutive days of 100°F temperatures, setting a summer peak load of **10,229 MW** on June 24th, the highest since 2013[7](index=7&type=chunk) - Infrastructure and storm restoration efforts proved beneficial during intense storms, validating investments in system reliability[7](index=7&type=chunk) - PSE&G implemented a Summer Relief Initiative, providing residential customers with deferred billing during high usage months (no interest), extended shut-off protections for income-qualified customers, and suspended electric re-connect fees through September 30[7](index=7&type=chunk) [1.3 Other Key Developments](index=2&type=section&id=1.3%20Other%20Key%20Developments) Recent PJM capacity auction results for 2026/2027 indicate a higher capacity price with a near-flat impact on customer bills, while federal tax legislation provided favorable terms for nuclear production tax credits and bonus depreciation [1.3.1 PJM Auction Results](index=2&type=section&id=1.3.1%20PJM%20Auction%20Results) PJM's latest capacity auction for 2026/2027 resulted in a higher price, with minimal impact on customer bills, amidst resource adequacy concerns - PJM's latest auction results priced capacity at **$329 per megawatt-day (MW-day)** for the 2026/2027 energy year[8](index=8&type=chunk) - The latest PJM capacity price is anticipated to have a near-flat impact on customer electric bills in New Jersey for 2026/2027, assuming other supply-related costs remain constant[8](index=8&type=chunk) - Resource adequacy challenges are becoming more acute in New Jersey and across the PJM region due to growing demand and slow response from new generation[8](index=8&type=chunk) [1.3.2 Federal Tax Legislation Impact](index=2&type=section&id=1.3.2%20Federal%20Tax%20Legislation%20Impact) Federal tax legislation provides favorable terms for nuclear production tax credits and extends bonus depreciation - Federal tax legislation preserved the downside price protection of the nuclear production tax credit (PTC) and its availability for nuclear capacity expansions, supporting the planned power uprate at Salem[9](index=9&type=chunk)[10](index=10&type=chunk) - The legislation also permanently extends **100% bonus depreciation** to qualified business property[10](index=10&type=chunk) [Segment Performance Analysis](index=3&type=section&id=Segment%20Performance%20Analysis) Analysis of PSE&G and PSEG Power & Other segments reveals improved financial performance driven by rate adjustments, load growth, and nuclear operations [2.1 PSE&G Segment Results](index=3&type=section&id=2.1%20PSE%26G%20Segment%20Results) PSE&G's financial performance improved in Q2 and YTD 2025, benefiting from new electric and gas base rates. The segment is also experiencing significant load growth inquiries, particularly from data centers, which could help spread fixed costs [2.1.1 Financial Performance](index=3&type=section&id=2.1.1%20Financial%20Performance) PSE&G reported increased Net Income and Non-GAAP Operating Earnings for Q2 and YTD 2025, supported by new base rates | Metric | 2Q 2025 ($ millions) | 2Q 2024 ($ millions) | Change ($ millions) | Change (%) | YTD 2025 ($ millions) | YTD 2024 ($ millions) | Change ($ millions) | Change (%) | | :---------------------------------- | :------------------- | :------------------- | :------------------ | :--------- | :-------------------- | :-------------------- | :------------------ | :--------- | | PSE&G Net Income/Non-GAAP Operating Earnings | $332 | $302 | $30 | 9.9% | $878 | $790 | $88 | 11.1% | - PSE&G's Q2 2025 results reflect new electric and gas base rates in effect following the October 2024 distribution rate case settlement, partly offset by higher expenses and the timing of taxes[12](index=12&type=chunk) [2.1.2 Operational Developments & Load Growth](index=3&type=section&id=2.1.2%20Operational%20Developments%20%26%20Load%20Growth) PSE&G is experiencing substantial load growth inquiries, primarily from data centers, which is expected to benefit customer bills - PSE&G observed significant increases in large load inquiries for new service connections, growing to over **9,400 megawatts** as of June 30, 2025, up from **6,400 MW** at the end of March, largely driven by data center customers[13](index=13&type=chunk) - The engineering assessment response averages about four months, supporting New Jersey's economic development[13](index=13&type=chunk) - Conversion of these large load prospects into new utility customers helps lower existing customer bills by spreading fixed costs over a larger user base[13](index=13&type=chunk) [2.2 PSEG Power & Other Segment Results](index=3&type=section&id=2.2%20PSEG%20Power%20%26%20Other%20Segment%20Results) PSEG Power & Other reported substantial increases in Net Income and Non-GAAP Operating Earnings, driven by higher nuclear output and favorable capacity auction results. Future results will be influenced by a scheduled nuclear outage and the conclusion of zero emission certificates [2.2.1 Financial Performance](index=3&type=section&id=2.2.1%20Financial%20Performance) PSEG Power & Other achieved significant increases in Net Income and Non-GAAP Operating Earnings for Q2 and YTD 2025 | Metric | 2Q 2025 ($ millions) | 2Q 2024 ($ millions) | Change ($ millions) | Change (%) | YTD 2025 ($ millions) | YTD 2024 ($ millions) | Change ($ millions) | Change (%) | | :---------------------------------- | :------------------- | :------------------- | :------------------ | :--------- | :-------------------- | :-------------------- | :------------------ | :--------- | | PSEG Power & Other Net Income | $253 | $132 | $121 | 91.7% | $296 | $176 | $120 | 68.2% | | PSEG Power & Other Non-GAAP Operating Earnings | $52 | $11 | $41 | 372.7% | $224 | $180 | $44 | 24.4% | [2.2.2 Nuclear Operations & Capacity Auctions](index=3&type=section&id=2.2.2%20Nuclear%20Operations%20%26%20Capacity%20Auctions) Nuclear generation increased in Q2 2025, and PSEG Nuclear secured favorable capacity prices in the 2026/2027 PJM auction - PSEG Nuclear generated approximately **7.5 terawatt hours (TWh)** of energy during Q2 2025, up **0.5 TWh (7.1%)** over Q2 2024, reflecting the 2024 spring refueling outage at Hope Creek[14](index=14&type=chunk) - PSEG Nuclear cleared approximately **3,500 MW** of its eligible nuclear capacity in the 2026/2027 PJM base residual auction, priced at **$329/MW-day**, an increase from approximately **$270/MW-day** for the 2025/2026 auction[15](index=15&type=chunk) - Second half 2025 results for PSEG Power & Other will be impacted by the scheduled Hope Creek outage and the completion of the three-year zero emission certificate award (ended May 31), offset by higher capacity revenues from the 2025/2026 auction[16](index=16&type=chunk) [Company Information & Disclosures](index=4&type=section&id=Company%20Information%20%26%20Disclosures) This section provides an overview of PSEG, explains non-GAAP financial measures, outlines forward-looking statements and risk factors, and directs to investor resources [3.1 About PSEG](index=4&type=section&id=3.1%20About%20PSEG) Public Service Enterprise Group (PSEG) is a regulated infrastructure company operating New Jersey's largest utility and owning carbon-free nuclear power generation, committed to a vision of cleaner, safer, and more reliable energy - PSEG is a predominantly regulated infrastructure company, operating New Jersey's largest transmission and distribution utility, serving approximately **2.4 million electric** and **1.9 million natural gas customers**[17](index=17&type=chunk) - PSEG owns an independent fleet of **3,758 MW** of carbon-free, baseload nuclear power generating units in NJ and PA[17](index=17&type=chunk) - Guided by its 'Powering Progress' vision, PSEG aims to power a future where people use less energy, and it's cleaner, safer, and delivered more reliably[17](index=17&type=chunk) - PSEG is a member of the S&P 500 Index and has been named to the Dow Jones Sustainability North America Index for **17 consecutive years**[17](index=17&type=chunk) [3.2 Non-GAAP Financial Measures Explanation](index=4&type=section&id=3.2%20Non-GAAP%20Financial%20Measures%20Explanation) PSEG utilizes non-GAAP Operating Earnings to provide a consistent measure of financial performance, excluding volatile items like NDT and MTM adjustments, while emphasizing that it complements GAAP Net Income - Management uses non-GAAP Operating Earnings as a consistent measure for comparing PSEG's financial performance to previous results, excluding the impact of gains (losses) associated with the Nuclear Decommissioning Trust (NDT), Mark-to-Market (MTM) accounting, and other material infrequent items[18](index=18&type=chunk) - The presentation of non-GAAP Operating Earnings is intended to complement and should not be considered an alternative to GAAP Net Income[19](index=19&type=chunk) - PSEG is unable to reconcile forward-looking non-GAAP Operating Earnings guidance to GAAP measures due to the inherent difficulty in forecasting and quantifying volatile MTM and NDT gains (losses)[20](index=20&type=chunk) [3.3 Forward-Looking Statements & Risk Factors](index=4&type=section&id=3.3%20Forward-Looking%20Statements%20%26%20Risk%20Factors) The report includes forward-looking statements that are subject to various risks and uncertainties, such as regulatory challenges, climate change impacts, operational disruptions, and market fluctuations, which could materially affect actual results - The report contains forward-looking statements regarding future performance, revenues, earnings, strategies, and prospects, which are subject to risks and uncertainties that could cause actual results to differ materially[21](index=21&type=chunk) - Key risk factors include: inability to successfully develop or obtain regulatory approval for projects; physical, financial, and transition risks related to climate change; equipment failures, cyberattacks, or other disruptions; supply chain disruptions; and changes in state and federal legislation and regulations[21](index=21&type=chunk)[25](index=25&type=chunk) - Readers are cautioned not to place undue reliance on these forward-looking statements, and PSEG disclaims any obligation to update them unless required by applicable securities laws[22](index=22&type=chunk) [3.4 Investor Relations Information](index=5&type=section&id=3.4%20Investor%20Relations%20Information) PSEG encourages investors to visit its corporate Investor Relations website for important updates and to sign up for email alerts - PSEG and PSE&G release important information via postings on their corporate Investor Relations website at https://investor.pseg.com[24](index=24&type=chunk) - Investors and other interested parties are encouraged to visit the Investor Relations website to review new postings and sign up for automatic email alerts[24](index=24&type=chunk) [Detailed Financial Statements & Operational Data](index=6&type=section&id=Detailed%20Financial%20Statements%20%26%20Operational%20Data) This section provides detailed consolidated statements of operations, capitalization, cash flows, retail sales, weather data, nuclear generation, and statistical measures [4.1 Consolidating Statements of Operations](index=6&type=section&id=4.1%20Consolidating%20Statements%20of%20Operations) PSEG's consolidated statements of operations for both the second quarter and six months ended June 30, 2025, demonstrate significant growth in operating revenues, operating income, and net income compared to the prior year periods [4.1.1 Three Months Ended June 30](index=6&type=section&id=4.1.1%20Three%20Months%20Ended%20June%2030) Consolidated operating revenues and net income significantly increased for the three months ended June 30, 2025 | Metric ($ millions) | 2Q 2025 | 2Q 2024 | Change ($ millions) | Change (%) | | :-------------------------- | :------ | :------ | :------------------ | :--------- | | OPERATING REVENUES | $2,805 | $2,423 | $382 | 15.8% | | OPERATING INCOME | $817 | $582 | $235 | 40.4% | | NET INCOME | $585 | $434 | $151 | 34.8% | | OPERATING EARNINGS (non-GAAP) | $384 | $313 | $71 | 22.7% | [4.1.2 Six Months Ended June 30](index=7&type=section&id=4.1.2%20Six%20Months%20Ended%20June%2030) Consolidated operating revenues and net income showed strong growth for the six months ended June 30, 2025 | Metric ($ millions) | YTD 2025 | YTD 2024 | Change ($ millions) | Change (%) | | :-------------------------- | :------- | :------- | :------------------ | :--------- | | OPERATING REVENUES | $6,027 | $5,183 | $844 | 16.3% | | OPERATING INCOME | $1,614 | $1,267 | $347 | 27.4% | | NET INCOME | $1,174 | $966 | $208 | 21.5% | | OPERATING EARNINGS (non-GAAP) | $1,102 | $970 | $132 | 13.6% | [4.2 Capitalization Schedule](index=8&type=section&id=4.2%20Capitalization%20Schedule) PSEG's total capitalization increased as of June 30, 2025, primarily driven by an increase in long-term debt and retained earnings, despite a reduction in commercial paper and loans | Metric ($ millions) | June 30, 2025 | December 31, 2024 | Change ($ millions) | Change (%) | | :-------------------------- | :------------ | :------------------ | :------------------ | :--------- | | Commercial Paper and Loans | $650 | $1,593 | $(943) | -59.2% | | Long-Term Debt | $22,639 | $21,114 | $1,525 | 7.2% | | Total Debt | $23,289 | $22,707 | $582 | 2.6% | | Total Stockholders' Equity | $16,671 | $16,114 | $557 | 3.5% | | Total Capitalization | $39,960 | $38,821 | $1,139 | 2.9% | [4.3 Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=4.3%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the first half of 2025, PSEG experienced a substantial increase in net cash provided by operating activities, while investing activities remained a net use of cash, and financing activities shifted to a net use | Metric ($ millions) | YTD 2025 | YTD 2024 | Change ($ millions) | Change (%) | | :------------------------------------------ | :------- | :------- | :------------------ | :--------- | | Net Cash Provided By (Used In) Operating Activities | $1,527 | $1,143 | $384 | 33.6% | | Net Cash Provided By (Used In) Investing Activities | $(1,388) | $(1,612) | $224 | -13.9% | | Net Cash Provided By (Used In) Financing Activities | $(78) | $515 | $(593) | -115.1% | | Net Change in Cash, Cash Equivalents and Restricted Cash | $61 | $46 | $15 | 32.6% | | Cash, Cash Equivalents and Restricted Cash at End of Period | $215 | $145 | $70 | 48.3% | [4.4 PSE&G Retail Sales & Weather Data](index=10&type=section&id=4.4%20PSE%26G%20Retail%20Sales%20%26%20Weather%20Data) PSE&G's electric sales saw a slight decline in Q2 and YTD 2025, while total gas sales increased significantly, particularly non-firm C&I sales. Weather data indicated milder conditions for Q2 but varied year-to-date [4.4.1 Electric Sales](index=10&type=section&id=4.4.1%20Electric%20Sales) PSE&G's electric sales experienced a slight decrease across residential and commercial & industrial sectors in Q2 and YTD 2025 | Sales (million kWh) | 2Q 2025 | Change vs. 2024 (2Q) | YTD 2025 | Change vs. 2024 (YTD) | | :------------------- | :------ | :------------------- | :------- | :-------------------- | | Residential | 3,142 | (7%) | 6,432 | (0%) | | Commercial & Industrial | 6,252 | (2%) | 12,830 | (1%) | | Other | 61 | (14%) | 162 | (5%) | | Total | 9,455 | (4%) | 19,424 | (1%) | [4.4.2 Gas Sold and Transported](index=10&type=section&id=4.4.2%20Gas%20Sold%20and%20Transported) Total gas sales and transported volumes increased significantly in Q2 and YTD 2025, driven by non-firm C&I sales | Sales (million therms) | 2Q 2025 | Change vs. 2024 (2Q) | YTD 2025 | Change vs. 2024 (YTD) | | :---------------------- | :------ | :------------------- | :------- | :-------------------- | | Total Firm Sales | 356 | (1%) | 1,598 | 9% | | Non-Firm Sales (C&I) | 346 | 81% | 476 | 30% | | Total Sales | 702 | 28% | 2,074 | 14% | [4.4.3 Weather Data](index=10&type=section&id=4.4.3%20Weather%20Data) Weather data for Q2 2025 showed fewer THI Hours and Degree Days compared to the prior year | Metric | 2Q 2025 | Change vs. 2024 (2Q) | YTD 2025 | Change vs. 2024 (YTD) | | :------------------ | :------ | :------------------- | :------- | :-------------------- | | THI Hours - Actual | 5,043 | (14%) | 5,121 | (13%) | | Degree Days - Actual | 373 | (7%) | 2,749 | 9% | [4.5 Nuclear Generation Measures](index=11&type=section&id=4.5%20Nuclear%20Generation%20Measures) PSEG's total nuclear generation increased in both Q2 and YTD 2025, primarily due to higher output from New Jersey nuclear units, reflecting the absence of a refueling outage in the current quarter | GWh Breakdown | 2Q 2025 | 2Q 2024 | Change (GWh) | Change (%) | YTD 2025 | YTD 2024 | Change (GWh) | Change (%) | | :-------------- | :------ | :------ | :----------- | :--------- | :------- | :------- | :----------- | :--------- | | Nuclear - NJ | 4,670 | 4,178 | 492 | 11.8% | 10,134 | 9,515 | 619 | 6.5% | | Nuclear - PA | 2,841 | 2,829 | 12 | 0.4% | 5,732 | 5,692 | 40 | 0.7% | | Total | 7,511 | 7,007 | 504 | 7.1% | 15,866 | 15,207 | 659 | 4.3% | [4.6 Statistical Measures](index=12&type=section&id=4.6%20Statistical%20Measures) PSEG's statistical measures as of June 30, 2025, show stable diluted shares outstanding, an increase in stock price and dividends per share, and an improved market price relative to book value | Metric | YTD 2025 | YTD 2024 | Change | Change (%) | | :------------------------------------ | :------- | :------- | :------- | :--------- | | Weighted Average Common Shares Outstanding (Diluted, millions) | 500 | 500 | 0 | 0.0% | | Stock Price at End of Period | $84.18 | $73.70 | $10.48 | 14.2% | | Dividends Paid per Share of Common Stock | $1.26 | $1.20 | $0.06 | 5.0% | | Dividend Yield | 3.0% | 3.3% | -0.3% | -9.1% | | Book Value per Common Share | $33.43 | $31.79 | $1.64 | 5.2% | | Market Price as a Percent of Book Value | 252% | 232% | 20% | 8.6% | [4.7 Non-GAAP Operating Earnings Reconciliations](index=13&type=section&id=4.7%20Non-GAAP%20Operating%20Earnings%20Reconciliations) Reconciliations for both consolidated and PSEG Power & Other segments detail the adjustments made from Net Income to Non-GAAP Operating Earnings, primarily driven by pre-tax gains/losses on Nuclear Decommissioning Trust funds and Mark-to-Market activities [4.7.1 Consolidated Operating Earnings Reconciliation](index=13&type=section&id=4.7.1%20Consolidated%20Operating%20Earnings%20Reconciliation) Consolidated reconciliation details adjustments from Net Income to Non-GAAP Operating Earnings, primarily for NDT and MTM activities | Reconciling Items ($ millions) | 2Q 2025 | 2Q 2024 | YTD 2025 | YTD 2024 | | :-------------------------------------------------- | :------ | :------ | :------- | :------- | | Net Income | $585 | $434 | $1,174 | $966 | | (Gain) Loss on Nuclear Decommissioning Trust (NDT) Fund Related Activity, pre-tax | (108) | (13) | (120) | (108) | | (Gain) Loss on Mark-to-Market (MTM), pre-tax | (190) | (159) | (2) | 99 | | Income Taxes related to Operating Earnings (non-GAAP) reconciling items | 97 | 51 | 50 | 17 | | Operating Earnings (non-GAAP) | $384 | $313 | $1,102 | $970 | [4.7.2 PSEG Power & Other Operating Earnings Reconciliation](index=14&type=section&id=4.7.2%20PSEG%20Power%20%26%20Other%20Operating%20Earnings%20Reconciliation) PSEG Power & Other reconciliation outlines adjustments from Net Income to Non-GAAP Operating Earnings, mainly for NDT and MTM | Reconciling Items ($ millions) | 2Q 2025 | 2Q 2024 | YTD 2025 | YTD 2024 | | :-------------------------------------------------- | :------ | :------ | :------- | :------- | | Net Income | $253 | $132 | $296 | $176 | | (Gain) Loss on NDT Fund Related Activity, pre-tax | (108) | (13) | (120) | (108) | | (Gain) Loss on MTM, pre-tax | (190) | (159) | (2) | 99 | | Income Taxes related to Operating Earnings (non-GAAP) reconciling items | 97 | 51 | 50 | 17 | | Operating Earnings (non-GAAP) | $52 | $11 | $224 | $180 |

Financial Performance - Public Service Enterprise Group (PSEG) reported a net income of $585 million for Q2 2025, compared to $434 million in Q2 2024, resulting in earnings per share (EPS) of $1.17, up from $0.87 year-over-year [1][2] - For the first half of 2025, net income reached $1.174 billion, an increase from $966 million in the same period of 2024, with EPS rising to $2.35 from $1.93 [2][29] - Non-GAAP operating earnings for Q2 2025 were $384 million, compared to $313 million in Q2 2024, translating to $0.77 per share, up from $0.63 [1][2] Guidance and Outlook - PSEG maintains its 2025 non-GAAP operating earnings guidance of $3.94 to $4.06 per share, representing a 9% increase at the midpoint compared to 2024 results [3][4] - The financial outlook for 2025 includes new distribution rates from a 2024 settlement and a refueling outage at the Hope Creek nuclear unit, aimed at extending its fuel cycle [3] Operational Highlights - PSEG successfully managed a peak load of 10,229 MW on June 24, 2025, the highest since 2013, demonstrating the effectiveness of its infrastructure investments [5] - The company is on track to execute a $3.8 billion regulated investment program, aiming for a 5% to 7% compound annual growth in non-GAAP operating earnings from 2025 to 2029 [4] Segment Performance - PSE&G's net income for Q2 2025 was $332 million, up from $302 million in Q2 2024, while PSEG Power & Other reported net income of $253 million, significantly higher than $132 million in the prior year [8] - PSEG Nuclear generated approximately 7.5 terawatt hours (TWh) of energy in Q2 2025, an increase of 0.5 TWh compared to the same period in 2024 [10] Customer and Market Insights - PSE&G observed a significant increase in large load inquiries for new service connections, growing to over 9,400 megawatts as of June 30, 2025, primarily driven by data center customers [9] - The latest PJM auction results indicated a capacity price of $329 per megawatt-day for the 2026/2027 energy year, up from $270 per megawatt-day for the previous year [6][11] Legislative and Regulatory Developments - Recent federal tax legislation preserved the nuclear production tax credit and extended 100% bonus depreciation for qualified business property, supporting PSEG's planned power uprate at Salem [7]

Core Insights - PSE&G's energy efficiency programs are significantly benefiting New Jersey customers by saving money and energy, with nearly 465,000 participants saving over $720 million annually on utility bills [1][2][5] - The programs include home energy assessments, rebates for energy-efficient appliances, and support for businesses, leading to substantial energy savings and operational cost reductions [2][3][4] Customer Participation and Savings - Approximately 740 million dollars in rebates have been provided to customers, facilitating energy-saving upgrades [2] - More than 18,500 businesses have implemented around 28,000 projects to enhance operational efficiency and comfort [3] - The Small Business Direct Install program is projected to save over 19 million dollars annually for more than 1,500 small businesses [4] Energy and Environmental Impact - Residential and business customers are expected to save about 2.8 million megawatt-hours of electricity annually, enough to power over 406,000 homes [5] - Natural gas savings are anticipated to exceed 75 million therms per year, contributing to a reduction of approximately 2.1 million metric tons of carbon emissions annually [5] Workforce Development - The Clean Energy Jobs Program has placed over 4,100 individuals in clean energy roles, enhancing the skilled workforce in New Jersey [6] Program Recognition and Awards - PSE&G's energy efficiency programs have received 75 industry awards for excellence in program delivery, workforce development, and marketing [6] Affordability and Future Outlook - PSE&G emphasizes affordability as a priority, recognizing the challenges customers face in managing energy costs [7] - The company is prepared to collaborate with the state to address electricity supply challenges and expand reliable energy sources [9]

Group 1 - Analysts forecast PSEG (PEG) will report quarterly earnings of $0.71 per share, reflecting a year-over-year increase of 12.7% [1] - Anticipated revenues for the quarter are $2.34 billion, showing a decrease of 3.2% compared to the previous year [1] - The consensus EPS estimate has remained unchanged over the last 30 days, indicating a reevaluation of initial estimates by analysts [1] Group 2 - Revenue for PSE&G is expected to reach $1.97 billion, indicating a year-over-year change of +5.6% [3] - Revenue from Power & Other is projected at $453.29 million, representing a decline of -33.7% from the prior-year quarter [4] - The consensus estimate for total gas sold and transported is 543 million dekatherm, slightly down from 550 million dekatherm a year ago [4] Group 3 - Analysts estimate 'Gas Sold and Transported - Total Non-Firm Sales' at 176 million dekatherm, down from 191 million dekatherm in the previous year [5] - 'Gas Sold and Transported - Total Firm Sales' is expected to be 366 million dekatherm, compared to 359 million dekatherm reported last year [6] - Operating Income for Power & Other is forecasted to be $72.68 million, down from $115.00 million in the prior year [6] Group 4 - Operating Income for PSE&G is projected to reach $527.13 million, an increase from $467.00 million reported last year [7] - PSEG shares have increased by +9.4% in the past month, outperforming the Zacks S&P 500 composite's +2.7% [7] - PSEG holds a Zacks Rank 3 (Hold), indicating it is expected to closely follow overall market performance in the near term [7]