PUBLIC SERVICE ENTERPRISE GROUP INC

RESULTS OF OPERATIONS

PSEG

Our results of operations are comprised of the results of operations of our reportable segments, PSE&G and PSEG Power & Other, excluding charges related to intercompany transactions, which are eliminated in consolidation. For additional information on intercompany transactions, see Item 1. Note 18. Related-Party Transactions.

The following discussions for PSE&G and PSEG Power & Other provide a detailed explanation of their respective variances.

PSE&G

(A)Includes amortization of EE programs regulatory investment expenditures of $27 million and $17 million for the three months ended March 31, 2024 and 2023, respectively.

Three Months Ended March 31, 2024 as Compared to Three Months Ended March 31, 2023

Operating Revenues increased $40 million due to changes in delivery, commodity, clause and other operating revenues.

Delivery Revenues increased $44 million due primarily to

•Transmission revenues were $33 million higher due primarily to an increase in revenue requirements attributable to higher rate base investment.

•Electric and gas distribution revenues increased $11 million due primarily to a $48 million increase from higher volumes and a $6 million increase in Green Program Recovery Charge (GPRC) collections. These increases were partially offset by a $37 million reduction from Conservation Incentive Program decoupling and a $7 million increase in the flowback to customers of excess deferred tax liabilities and tax repair-related accumulated deferred income tax benefits resulting from rate reductions, which is offset in Income Tax Expense.

Commodity Revenues decreased $73 million as a result of lower Gas and Electric revenues. The changes in Commodity revenues for both gas and electric are entirely offset by the changes in Energy Costs. PSE&G earns no margin on the provision of basic gas supply service (BGSS) and BGS (basic generation service) to retail customers.

•Gas commodity revenues decreased $95 million due primarily to a decrease of $122 million from lower BGSS prices, partially offset by $27 million from higher BGSS sales volumes.

•Electric commodity revenues increased $22 million due to $15 million from higher sales volumes and $7 million from higher BGS prices.

Clause Revenues increased $54 million due primarily to a $66 million net increase in Tax Adjustment Credit (TAC) and GPRC deferrals, partially offset by lower Societal Benefits Clause (SBC) revenues of $12 million. The changes in TAC and GPRC deferral amounts and SBC revenues are entirely offset by changes in the amortization of Regulatory Assets and Regulatory Liabilities and related costs in O&M, D&A, Interest and Income Tax Expenses. PSE&G does not earn margin on TAC and GPRC deferrals or on SBC revenue.

Other Operating Revenues increased $15 million due primarily from Renewable Energy Credit (REC) programs. The changes in revenues from REC programs are entirely offset by changes to Energy Costs.

Operating Expenses

Energy Costs decreased $56 million. This is entirely offset by changes in Commodity Revenues and Other Operating Revenues.

Depreciation and Amortization increased $13 million due primarily to increases in depreciation due to higher plant placed in service, partially offset by a decrease in the amortization of Regulatory Assets.

Net Non-Operating Pension and OPEB Credits decreased $9 million due primarily to an $11 million decrease in the amortization of net prior service credits and a $1 million increase in the amortization of the net actuarial loss, partially offset by a $2 million increase in the expected return on plan assets and a $1 million decrease in interest cost.

Interest Expense increased $25 million due primarily to March and August 2023 debt issuances.

Income Tax Expense increased $38 million due primarily to higher pre-tax income and a decrease in the flowback of excess deferred income tax benefits.

Three Months Ended March 31, 2024 as Compared to Three Months Ended March 31, 2023

Operating Revenues decreased $1,155 million due primarily to changes in generation and gas supply and other operating revenues.

Generation Revenues decreased $1,060 million due primarily to

•a net decrease of $1,057 million due to MTM losses in 2024 as compared to MTM gains in 2023. Of this amount, there was a $680 million decrease due to changes in forward prices in 2024 as compared to 2023 coupled with a $377 million decrease due to positions reclassified to realized upon settlement,

•a net decrease of $22 million due primarily to electricity sold under the BGS contracts, which ended in May 2023, and lower volumes sold under other load contracts, and

•a net decrease of $12 million in capacity revenue due primarily to lower capacity prices, partially offset by decreases in capacity expenses due to lower load volumes served,

•partially offset by a net increase of $14 million due primarily to higher average realized prices and volumes sold in 2024.

Gas Supply Revenues decreased $114 million due primarily to

•a net decrease of $151 million in sales under the BGSS contract due primarily to $198 million from lower prices, partially offset by $47 million from higher sales volumes,

•partially offset by a net increase of $27 million due primarily to lower MTM losses, primarily due to positions reclassified to realized upon settlement, and

•a net increase of $10 million related to sales to third parties due primarily to $12 million from higher sales volumes, partially offset by $2 million from lower sales prices.

Operating Expenses

Energy Costs represent the cost of generation, which includes fuel costs for generation as well as purchased energy in the market, and gas purchases to meet PSEG Power’s obligation under its BGSS contract with PSE&G. Energy Costs decreased $149 million due to

Gas costs decreased $151 million due mainly to

•a net decrease of $158 million related to sales under the BGSS contract, of which $200 million was due to the lower average cost of gas, partially offset by $42 million due to higher send out volumes,

•partially offset by a net increase of $8 million related to sales to third parties due primarily to higher volumes sold.

Generation costs were essentially flat as compared to the prior year.

Operation and Maintenance increased $35 million due primarily to a refueling outage in 2024 at our 100%-owned Hope

Creek nuclear plant as compared to an outage at our 57%-owned Salem 2 nuclear plant in 2023, and higher Long Island Electric Utility Servco, LLC’s (Servco) operating costs paid by LIPA. See Note 3. Variable Interest Entity for additional information on Servco and LIPA.

Net Gains (Losses) on Trust Investments increased $49 million due primarily to $26 million of net unrealized gains, and $17 million of net realized gains on equity securities in 2024 as compared to $6 million of net realized losses in 2023 on fixed income securities in the NDT Fund.

Income Tax Expense decreased $239 million due primarily to lower pre-tax income in 2024.