PUBLIC SERVICE ELECTRIC & GAS CO

Previous wording

For the years 2026-2030, our regulated capital investment program is estimated to be in a range of $22.5 billion to $25.5 billion. We expect these capital investments to result in a compound annual growth rate in our regulated rate base in a range of 6.0% to 7.5% from year-end 2025 to year-end 2030. The regulated capital investments represent the majority of PSEG’s total capital investment program of $24 billion to $28 billion. The low end of the range includes an extension of our Gas System

Current wording

For the years 2026-2030, our regulated capital investment program is estimated to be in a range of $22.5 billion to $25.5 billion. We expect these capital investments to result in a compound annual growth rate in our regulated rate base in a range of 6.0% to 7.5% from year-end 2025 to year-end 2030. The regulated capital investments represent the majority of PSEG’s total capital investment program of $24 billion to $28 billion. The low end of the range includes an extension of our Gas System Modernization Program (GSMP) and Clean Energy Future (CEF)-EE program, as these programs are expected to continue beyond their currently approved time frames. The upper end of our capital investment range includes potential incremental investments to address continued demand growth and other investments to meet infrastructure needs and support New Jersey's clean energy goals.

Previous wording

PSE&G currently anticipates filing by year end 2026 to update base rates.

Current wording

PSE&G currently anticipates filing by year end 2026 to address regulatory lag of capital investments made since our last distribution rate case.

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 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.

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 nine months of 2026, our nuclear units generated approximately 23.9 terawatt hours and operated at a capacity factor of 94.3%. 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 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

PSE&G has undertaken a number of initiatives that support the reduction of GHG emissions, including our implementation of New Jersey's EE and related programs that are intended to support New Jersey’s Energy Master Plan (EMP) and Gubernatorial Executive Orders through programs designed to help customers use energy more efficiently, reduce GHG emissions, support the expansion of the EV infrastructure in New Jersey, install energy storage capacity to supplement solar generation and enhance grid resiliency, install smart meters and supporting infrastructure to allow for the integration of other clean energy technologies and to more efficiently respond to weather and other outage events.

Current wording

PSE&G has undertaken a number of initiatives that support the reduction of greenhouse gas (GHG) emissions, including our implementation of New Jersey's EE and related programs that are intended to support New Jersey’s Energy Master Plan (EMP) and Gubernatorial Executive Orders through programs designed to help customers use energy more efficiently, reduce GHG emissions, support the expansion of the EV infrastructure in New Jersey, install energy storage capacity to supplement solar generation and enhance grid resiliency, install smart meters and supporting infrastructure to allow for the integration of other clean energy technologies and to more efficiently respond to weather and other outage events.

Previous wording

PSEG LI has been operating LIPA’s electric T&D system in Long Island, New York since 2014 under a 12-year OSA with LIPA that expired on December 31, 2025. In 2025, a five year extension of the contract was approved. A competitor in the contract bidding process filed litigation against LIPA challenging the process. LIPA filed a motion to dismiss the competitor’s claim as untimely, which was granted by the New York Supreme Court in December 2025. The competitor filed an appeal in January 2026.

Current wording

PSEG LI has been operating LIPA’s electric T&D system in Long Island, New York since 2014 under a 12-year OSA with LIPA that expired on December 31, 2025. In 2025, a five year extension of the contract was approved. A competitor in the contract bidding process filed litigation against LIPA challenging the process. LIPA filed a motion to dismiss the competitor’s claim as untimely, which was granted by the New York Supreme Court in December 2025. The competitor filed an appeal in January 2026 for which it did not meet a July 2026 deadline to pursue.

Previous 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:

Current wording

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

Previous 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.

Current wording

Net of tax benefit (expense) of $3 million and $(28) million for the three months and $(57) million and $(77) million for the nine months ended September 30, 2026 and 2025, respectively.

Previous 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.

Current wording

Net of tax benefit (expense) of $71 million and $(5) million for the three months and $155 million and $(6) million for the nine months ended September 30, 2026 and 2025, respectively.

Previous 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.

Current wording

The decreases in Net Income for the three and nine months ended September 30, 2026 versus the comparable periods in 2025 were driven primarily by MTM losses in 2026 compared to gains in the prior year and lower net gains on NDT Fund investments, as shown above. These impacts were partially offset by increases from continued investment in T&D clause programs at PSE&G and higher capacity revenues 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 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.

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. 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, which if this occurred would prospectively reduce PSE&G’s annual Net Income and annual cash inflows by approximately $40 million. We cannot predict the outcome of any future proceedings that may arise relating to this matter.

Previous wording

In July 2026, the BPU issued the final framework for the extension of its second triennium of energy efficiency programs. The final framework includes elements that adjust the overall budget for the extension, requiring budgets to be based on gross, not net, energy savings, adjusts return on equity that the utilities can earn for achieving performance goals, and replaces the existing method to collect foregone revenue. The framework also allows for utilities to file for alternative proposals, including but not limited to ROE and savings targets. Petitions by utilities for the extension are due on September 30, 2026. It is anticipated that the BPU will issue the framework for the third program cycle of energy efficiency programs later in 2026. We cannot predict the outcome of this matter.

Current wording

In July 2026, the BPU issued the final framework for the extension of its second triennium of energy efficiency programs. The final framework includes elements that adjust the overall budget for the extension, requiring budgets to be based on gross, not net, energy savings, adjusts return on equity that the utilities can earn for achieving performance goals, and replaces the existing method to collect foregone revenue. The framework also allows for utilities to file for alternative proposals, including but not limited to ROE and savings targets. In September 2026, PSE&G filed its proposed program extension with alternatives. It is anticipated that the BPU will issue the framework for the third program cycle of energy efficiency programs by year end. We cannot predict the outcome of this matter.

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. 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.

Current wording

An increasing demand for power and a lack of sufficient new generation resources in PJM and in New Jersey, have resulted in resource adequacy concerns and customer affordability impacts, which in turn has prompted action from the federal government and PJM. PJM made a filing in July 2026 seeking FERC approval to establish a one-time capacity procurement mechanism to address resource adequacy challenges in the PJM region. Under the “Reliability Backstop Procurement” (RBP) 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. In September 2026, FERC issued an order finding key components of the RBP filing to be just and reasonable while rejecting other components. FERC also encouraged PJM to make a revised filing within 30 days based on the guidance it provided. At the end of October 2026, PJM made a revised RBP filing, seeking FERC approval by January 29, 2027. Assuming FERC approval, PJM plans to run the RBP auction on March 1, 2027.

Previous wording

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 proceeding to establish definitive rules for future large customer connections intended to ensure reliability and address resource adequacy concerns. FERC has recently issued an order in the rulemaking proceeding directing all of the RTOs/ISOs, including PJM, to establish rules for future large load connections, including how the RTOs/ISOs will study these requests and how transmission costs will be paid. We cannot predict the outcome of these proceedings and their impact on our business.

Current wording

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 proceeding to establish definitive rules for future large customer connections intended to ensure reliability and address resource adequacy concerns. In June 2026, FERC issued an order in the rulemaking proceeding directing all of the RTOs/ISOs, including PJM, to establish rules for future large load connections, including how the RTOs/ISOs will study these requests and how transmission costs will be paid. We cannot predict the outcome of these proceedings and their impact on our business.

Previous wording

There has been increased New Jersey state legislative activity and executive orders regarding energy affordability, resource adequacy and regulatory topics. In 2025, per direction to EDCs from the BPU, PSE&G took steps to mitigate the impacts of increasing electricity costs resulting from capacity market price increases, including the implementation of extended deferred payment arrangements. Further, the New Jersey legislature enacted a law prohibiting disconnection for non-payment during the period June 15 through August 31, beginning in 2026, and for such period annually thereafter, for certain qualified electric and gas customers. Both of these actions increased our bad debt expense in 2025, with potential additional increases in the future.

Current wording

There has been increased New Jersey state legislative activity and executive orders regarding energy affordability, resource adequacy and regulatory topics. In 2025, per direction to EDCs from the BPU, PSE&G took steps to mitigate the impacts of increasing electricity costs resulting from capacity market price increases, including the implementation of extended deferred payment arrangements. Further, the New Jersey legislature enacted a law prohibiting disconnection for non-payment during the period June 15 through August 31, beginning in 2026, and for such period annually thereafter, for certain qualified electric and gas customers. Recognizing the affordability concerns that drove this law, PSE&G initiated a Summer Relief Initiative in June 2025 that, combined with the extended deferred payment arrangements, increased our bad debt expense in 2025, and that impact will continue into the future.

Previous wording

the impact of changes in energy demand, natural gas and electricity prices and PJM’s challenge to ensure resource adequacy to meet demand growth amidst efforts to decarbonize several sectors of the economy.

Current wording

the impact of changes in energy demand, natural gas and electricity prices and the challenge to ensure resource adequacy to meet demand growth amidst efforts to decarbonize several sectors of the economy.