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 $30 million, $19 million, $57 million and $36 million for the three months and six months ended June 30, 2024 and 2023, respectively.

Three Months Ended June 30, 2024 as Compared to Three Months Ended June 30, 2023

Operating Revenues increased $201 million due to changes in delivery, commodity, clause and other operating revenues.

Delivery Revenues increased $49 million due primarily to

•Electric and gas distribution revenues increased $38 million due primarily to a $52 million increase from higher sales volumes, a $14 million decrease 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, $5 million from Energy Strong II (ESII) collections and a $4 million increase in Green Program Recovery Charge (GPRC) collections. These increases were partially offset by a $37 million reduction from Conservation Incentive Program (CIP) decoupling.

•Transmission revenues were $11 million higher due primarily to an increase in revenue requirements attributable to higher rate base investment.

Commodity Revenues increased $118 million as a result of higher Electric revenues partially offset by lower Gas revenues. The changes in Commodity revenues for both electric and gas are entirely offset by the changes in Energy Costs. PSE&G earns no margin on the provision of BGS (basic generation service) and basic gas supply service (BGSS) to retail customers.

•Electric commodity revenues increased $125 million due primarily to $85 million from higher BGS sales volumes and $39 million from higher BGS prices.

•Gas commodity revenues decreased $7 million due primarily to a decrease of $17 million from lower BGSS prices, partially offset by $10 million from higher BGSS sales volumes.

Clause Revenues increased $24 million due primarily to a $21 million net increase in Tax Adjustment Credit (TAC) and GPRC deferrals and higher Societal Benefits Clause (SBC) revenues of $2 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.

Energy Costs increased $132 million. This is entirely offset by changes in Commodity Revenues and Other Operating Revenues.

Operation and Maintenance increased $37 million due primarily to a $24 million increase in net distribution and transmission expenditures and $14 million of higher other operating expenses, partially offset by a $2 million reduction in clause and renewable costs.

Depreciation and Amortization increased $7 million due primarily to an increase in depreciation due to higher plant placed in service, partially offset by a decrease in the amortization of Regulatory Assets.

Net Other Income (Deductions)decreased $7 million due primarily to a decrease in the allowance for funds used during construction (AFUDC) and lower interest income.

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 $18 million due primarily to incremental debt and the replacement of maturing debt at higher rates.

Income Tax Expense increased $25 million due primarily to a decrease in the flowback of excess deferred income tax benefits.

Six Months Ended June 30, 2024 as Compared to Six Months Ended June 30, 2023

Operating Revenues increased $241 million due to changes in delivery, commodity, clause and other operating revenues.

Delivery Revenues increased $123 million due primarily to

•Electric and gas distribution revenues increased $80 million due primarily to a $104 million increase from higher volumes, an $11 million increase in GPRC collections, a $7 million increase from ESII collections and a $6 million decrease 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. These increases were partially offset by a $48 million reduction from CIP decoupling.

•Transmission revenues were $43 million higher due primarily to an increase in revenue requirements attributable to higher rate base investment.

Commodity Revenues increased $45 million as a result of higher Electric partially offset by lower Gas revenues. The changes in Commodity revenues for both electric and gas are entirely offset by the changes in Energy Costs. PSE&G earns no margin on the provision of BGS and BGSS to retail customers.

•Electric commodity revenues increased $146 million due to $97 million from higher sales volumes and $49 million from higher BGS prices.

•Gas commodity revenues decreased $101 million due primarily to a decrease of $139 million from lower BGSS prices, partially offset by $38 million from higher BGSS sales volumes.

Clause Revenues increased $76 million due primarily to an $87 million increase in TAC and GPRC deferrals, partially offset by lower SBC revenues of $11 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.

Energy Costs increased $76 million. This is entirely offset by changes in Commodity Revenues and Other Operating Revenues.

Operation and Maintenance increased $42 million due primarily to a $45 million increase in net distribution and transmission expenditures and $18 million of higher other operating expenses, partially offset by a $21 million reduction in clause and renewable costs.

Depreciation and Amortization increased $20 million due primarily to an increase in depreciation due to higher plant placed in service, partially offset by a decrease in the amortization of Regulatory Assets.

Net Other Income (Deductions)decreased $12 million due primarily to a decrease in AFUDC and lower interest income.

Net Non-Operating Pension and OPEB Credits decreased $18 million due primarily to a $22 million decrease in the amortization of net prior service credits and a $2 million increase in the amortization of the net actuarial loss, partially offset by a $4 million increase in the expected return on plan assets and a $2 million decrease in interest cost.

Interest Expense increased $43 million due primarily to incremental debt and the replacement of maturing debt at higher rates.

Income Tax Expense increased $63 million due primarily to higher pre-tax income and a decrease in the flowback of excess deferred income tax benefits.

Three Months Ended June 30, 2024 as Compared to Three Months Ended June 30, 2023

Operating Revenues decreased $218 million due primarily to changes in generation and gas supply and other operating revenues.

Generation Revenues decreased $218 million due primarily to

•a net decrease of $133 million due to MTM losses in 2024 as compared to MTM gains in 2023. Of this amount, there was an $80 million decrease due to changes in forward prices in 2024 as compared to 2023 coupled with a $53 million decrease due to positions reclassified to realized upon settlement,

•a net decrease of $31 million due primarily to a lower ZEC revenue related to the Production Tax Credits (PTCs),

•a net decrease of $14 million in capacity revenue due primarily to lower capacity prices, partially offset by decreases in capacity expenses due to lower load volumes served, and

•a net decrease of $10 million due primarily to electricity sold under the BGS contracts, which ended in May 2023, and lower volumes sold under other load contracts.

Gas Supply Revenues decreased $11 million due primarily to

•a net decrease of $15 million in sales under the BGSS contract due primarily to $19 million from lower prices, partially offset by $4 million from higher sales volumes, and

•a net decrease of $3 million due primarily to MTM losses in 2024 as compared to MTM gains in 2023, primarily due to positions reclassified to realized upon settlement,

•partially offset by a net increase of $7 million related to sales to third parties due to $4 million from higher sales prices and $3 million from higher sales volumes.

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 $23 million due to

Generation costs decreased $16 million due primarily to lower renewable energy credit requirements caused by decreases in load volumes served, coupled with lower nuclear fuel amortization.

Gas costs decreased $7 million due primarily to

•a net decrease of $16 million related to sales under the BGSS contract, of which $20 million was due to the lower average cost of gas, partially offset by $4 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 average cost of gas and higher volumes sold.

Operation and Maintenance increased $43 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. See Note 3. Variable Interest Entity for additional information on Servco and LIPA.

Net Gains (Losses) on Trust Investments decreased $50 million due primarily to NDT investments with $23 million of net unrealized losses on equity securities in 2024 as compared to $60 million of net unrealized gains in 2023, partially offset by $29 million in net realized gains in 2024 as compared to $3 million of net realized losses in 2023.

Interest Expense increased $16 million due primarily to the replacement of maturing long-term debt at higher rates, partially offset by a reduction in term loans.

Income Tax Expense decreased $175 million due primarily to the benefit from Nuclear PTCs and lower pre-tax income in 2024.

Six Months Ended June 30, 2024 as Compared to Six Months Ended June 30, 2023

Operating Revenues decreased $1,373 million due primarily to changes in generation and gas supply and other operating revenues.

Generation Revenues decreased $1,278 million due primarily to

•a net decrease of $1,190 million due to MTM losses in 2024 as compared to MTM gains in 2023. Of this amount, there was a $665 million decrease due to changes in forward prices in 2024 as compared to 2023 coupled with a $525 million decrease due to positions reclassified to realized upon settlement,

•a net decrease of $76 million due primarily to a lower ZEC revenue related to the PTCs,

•a net decrease of $33 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 $26 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 $46 million due primarily to higher average realized prices, partially offset by lower volumes sold in 2024.

Gas Supply Revenues decreased $125 million due primarily to

•a net decrease of $165 million in sales under the BGSS contract due primarily to $217 million from lower prices, partially offset by $52 million from higher sales volumes,

•partially offset by a net increase of $23 million due primarily to lower MTM losses, primarily due to positions reclassified to realized upon settlement, partially offset by changes in forward prices, and

•a net increase of $17 million related to sales to third parties due primarily to $15 million from higher sales volumes, and $2 million from higher sales prices.

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 $172 million due to

Gas costs decreased $158 million due primarily to

•a net decrease of $174 million related to sales under the BGSS contract, of which $218 million was due to the lower average cost of gas, partially offset by $44 million due to higher send out volumes,

•partially offset by a net increase of $16 million related to sales to third parties due primarily to higher volumes sold and higher average cost of gas.

Generation costs decreased $14 million due primarily to lower renewable energy credit requirements caused by decreases in load volumes served.

Operation and Maintenance increased $78 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 Servco operating costs. See Note 3. Variable Interest Entity for additional information on Servco and LIPA.

Net Gains (Losses) on Trust Investments decreased $1 million due primarily to NDT investments with $56 million of lower net unrealized gains on equity securities as compared to the prior year, partially offset by $46 million in net realized gains in 2024 as compared to $9 million of net realized losses in 2023.

Interest Expense increased $16 million due primarily to the replacement of maturing long-term debt at higher rates, partially offset by a reduction in term loans.

Income Tax Expense decreased $414 million due primarily to lower pre-tax income in 2024 and the benefit from Nuclear PTCs.