PUBLIC SERVICE ELECTRIC & GAS CO

Previous wording

We are a public utility holding company that, acting through our wholly owned subsidiaries, is a predominantly regulated electric and gas utility and a nuclear generation business. Our business plan focuses on achieving growth by allocating capital primarily toward regulated investments in an effort to continue to improve the sustainability and predictability of our business and realizing the value of the consistent and reliable carbon-free generation from our nuclear units. We are focused on investing to meet growing energy demand, modernize our energy infrastructure, improve reliability and resilience, increase EE to meet customer expectations and be well aligned with public policy objectives. With these investments and higher working capital recovery approved in the distribution rate case, our regulated rate base increased from approximately $34 billion as of December 31, 2024 to approximately $36 billion as of December 31, 2025. In addition, our nuclear facilities retain the downside price protection of a production tax credit (PTC) from 2024 through 2032.

Current wording

We are a public utility holding company that, acting through our wholly owned subsidiaries, is a predominantly regulated electric and gas utility and a nuclear generation business. Our business plan focuses on achieving growth by allocating capital primarily toward regulated investments in an effort to continue to improve the sustainability and predictability of our business and realizing the value of the consistent and reliable carbon-free generation from our nuclear units. We are focused on investing to meet growing energy demand, modernize our energy infrastructure, improve reliability and resilience, and increase EE to meet customer expectations and be well aligned with public policy objectives. With these investments and higher working capital recovery approved in the distribution rate case, our regulated rate base increased from approximately $34 billion as of December 31, 2024 to approximately $36 billion as of December 31, 2025. In addition, our nuclear facilities retain the downside price protection of a production tax credit (PTC) from 2024 through 2032.

Previous wording

At PSEG Power, we seek to produce low-cost electricity by efficiently operating our nuclear generation assets, mitigate earnings volatility through hedging and the PTC mechanism, and support public policies that preserve these existing carbon-free base load nuclear generating plants. During the first three months of 2026, our nuclear units generated approximately 8 terawatt hours and operated at a capacity factor of 95.5%. Effective April 2025, PSEG Power revised the estimated useful lives for the Salem 1, Salem 2 and Hope Creek nuclear plants due to our expectation that a 20-year license extension will be approved for these facilities. In 2025, we also completed work to extend the refueling cycle at our Hope Creek facility from 18 months to 24 months. In addition, we are planning power uprates at Salem Units 1 and 2 that will increase generation capacity and reliability and support long-term operation of these units, including through a potential subsequent license renewal.

Current wording

At PSEG Power, we seek to produce low-cost electricity by efficiently operating our nuclear generation assets, mitigate earnings volatility through hedging and the PTC mechanism, and support public policies that preserve these existing carbon-free base load nuclear generating plants. During the first six months of 2026, our nuclear units generated approximately 15.8 terawatt hours and operated at a capacity factor of 93.7%. Effective April 2025, PSEG Power revised the estimated useful lives for the Salem 1, Salem 2 and Hope Creek nuclear plants due to our expectation that a 20-year license extension will be approved for these facilities. In 2025, we also completed work to extend the refueling cycle at our Hope Creek facility from 18 months to 24 months. In addition, we are planning power uprates at Salem Units 1 and 2 that will increase generation capacity and reliability and support long-term operation of these units, including through a potential subsequent license renewal.

Previous wording

The results for PSEG, PSE&G and PSEG Power & Other for the three months ended March 31, 2026 and 2025 are presented as follows:

Current wording

The results for PSEG, PSE&G and PSEG Power & Other for the three and six months ended June 30, 2026 and 2025 are presented as follows:

Previous wording

Net of tax expense of $1 million and $6 million for the three months ended March 31, 2026 and 2025, respectively.

Current wording

Net of tax benefit (expense) of $(59) million and $(43) million for the three months and $(60) million and $(49) million for the six months ended June 30, 2026 and 2025, respectively.

Previous wording

Net of tax benefit of $11 million and $53 million for the three months ended March 31, 2026 and 2025, respectively.

Current wording

Net of tax benefit (expense) of $73 million and $(54) million for the three months and $84 million and $(1) million for the six months ended June 30, 2026 and 2025, respectively.

Previous wording

Our increase in Net Income for the three months ended March 31, 2026 versus the comparable period in 2025 was driven primarily by continued investment in T&D clause programs at PSE&G and higher gas sales and capacity revenues at PSEG Power, combined with MTM and NDT activity, as shown in the table above.

Current wording

The decreases in Net Income for the three and six months ended June 30, 2026 versus the comparable periods in 2025 was driven primarily by MTM losses in 2026 compared to gains in the prior year, as shown in the table above. These impacts were partially offset by increases from continued investment in T&D clause programs at PSE&G and higher capacity revenues and gas sales at PSEG Power.

Previous wording

Under current FERC rules, PSE&G continues to earn a 50 basis point adder to its base ROE for its membership in PJM as a transmission owner. However, certain regulatory or legislative actions could potentially lead to the loss of this adder which, if eliminated, would prospectively reduce PSE&G’s annual Net Income and annual cash inflows by approximately $40 million.

Current wording

Under current FERC rules, PSE&G continues to earn a 50 basis point adder to its base ROE for its voluntary membership in PJM as a transmission owner. In June 2026, legislation was passed in New Jersey that requires transmission owners that own and operate transmission facilities in New Jersey to be members of a Regional Transmission Organization (RTO) approved by FERC. The legislation will require that, effective January 1, 2027, transmission owners be members in an RTO. While we are continuing to assess the potential impact of this legislation, this mandatory RTO membership requirement could result in the future loss of PSE&G’s 50 basis-point ROE adder for participating in an RTO. This would prospectively reduce PSE&G’s annual Net Income and annual cash inflows by approximately $40 million. We cannot predict the outcome of this matter.

Previous wording

New Jersey Clean Energy Stakeholder Proceedings

Current wording

New Jersey Clean Energy Matters

Previous wording

An increasing demand for power and a lack of sufficient new generation resources in PJM and in New Jersey, has raised resource adequacy concerns and resulted in higher electricity costs for our customers in 2025. Prices from the July 2024 PJM annual capacity market auction, which were approximately 10 times higher than prices from the 2023 auction and which impacted customer bills, provoked concern from state regulators and legislators and have created regulatory uncertainty. Prices from the July 2025 capacity market auction were higher than those produced by the July 2024 auction and PJM indicated that the prices would have been even higher if not for the existence of a FERC-approved ceiling, which remained in effect for the December 2025 auction. In February 2026, PJM filed with FERC a proposal to extend the price cap for another two delivery years (2028/29 and 2029/30) and, in April 2026, FERC issued an order accepting PJM’s proposal. In January 2026, the White House’s National Energy Dominance Council signed an agreement with the governors of all 13 states in the PJM region that memorializes a “statement of principles” intended to prompt PJM to make major changes to its capacity market, including running a “reliability backstop auction” to procure new generation capacity to provide up to 15-year “price certainty”. PJM has committed to run this backstop auction and is targeting a September 2026 date following FERC approval of all needed rule changes. There are outstanding questions associated with this auction, including around the role to be played by electric utilities in both setting the procurement target and purchasing the capacity from PJM during the auction, which could create collection risk for both PSE&G and its customers. In addition, in 2025, FERC both issued an order that will encourage optionality for “large load” customers by facilitating co-location with generation, and initiated a rulemaking to establish definitive rules for future large customer connections intended to ensure reliability and address resource adequacy concerns. We cannot predict the outcome of these proceedings and their impact on our business.

Current wording

An increasing demand for power and a lack of sufficient new generation resources in PJM and in New Jersey, has raised resource adequacy concerns and resulted in higher electricity costs for our customers in 2025. Prices from the July 2024 PJM annual capacity market auction, which were approximately 10 times higher than prices from the 2023 auction and which impacted customer bills, provoked concern from state regulators and legislators and have created regulatory uncertainty. Prices from the July 2025 capacity market auction were higher than those produced by the July 2024 auction and PJM indicated that the prices would have been even higher if not for the existence of a FERC-approved ceiling, which remained in effect for the December 2025 auction. In February 2026, PJM filed with FERC a proposal to extend the price cap for another two delivery years (2028/29 and 2029/30) and, in April 2026, FERC issued an order accepting PJM’s proposal. In January 2026, the White House’s National Energy Dominance Council signed an agreement with the governors of all 13 states in the PJM region that memorializes a “statement of principles” intended to prompt PJM to make major changes to its capacity market, including running a “reliability backstop auction” to procure new generation capacity to provide up to 15-year “price certainty”. PJM has committed to run this backstop auction and is targeting a September 2026 date following FERC approval of all needed rule changes. In July 2026, PJM submitted proposed tariff revisions with FERC to establish a one-time capacity procurement mechanism to address resource adequacy challenges in the PJM region. Under the “Reliability Backstop Procurement” framework, PJM intends to secure 15-year commitments from new eligible generation resources to match the reliability shortfall observed in the base residual auction for the 2028/2029 delivery year. To commence the procurement window on September 30, 2026, PJM asked FERC to approve the filing with an effective date of September 29, 2026. We cannot predict the outcome of this proceeding.

Previous wording

In January 2026, the New Jersey Governor issued executive orders directing the BPU within its legal authority to mitigate electric rate increases through state funding during 2026 as well as other actions, and to advance resource adequacy solutions, in New Jersey. It is not clear how these orders might influence New Jersey’s energy policy.

Current wording

In January 2026, the New Jersey Governor issued executive orders directing the BPU within its legal authority to mitigate electric rate increases through state funding during 2026 as well as other actions, and to advance resource adequacy solutions, in New Jersey. Executive Order No. 1 directed the BPU to complete and issue a study regarding modernization of the traditional electric distribution utility business model and the BPU retained a consultant to prepare the study. In July 2026, the BPU issued its consultant’s study, which discusses potential options for electric distribution utility ratemaking, including a review of other jurisdictions. The consultant will now undertake a quantitative analysis of the modernization options presented in its report. We cannot predict the outcome of this initiative or its potential impact on our business. It is not clear how these orders might influence New Jersey’s energy policy.

Previous wording

investments in generation and battery storage through BPU or other similar solicitations;

Current wording

investments in generation and battery storage through BPU, RTO or other similar solicitations or bilateral agreements;