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What changed in Public Service Enterprise Group's 10-K — 2024 vs 2025

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Paragraph-level year-over-year comparison of Public Service Enterprise Group's 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.

+434 added−426 removedSource: 10-K (2026-02-26) vs 10-K (2025-02-25)

Top changes in Public Service Enterprise Group's 2025 10-K

434 paragraphs added · 426 removed · 332 edited across 9 sections

Item 1. Business

Business — how the company describes what it does

90 edited+43 added−43 removed81 unchanged
Biggest changeInvestment Clause Programs The following table lists our major approved investment clause programs that are in progress: Program Investment Approval Date Term of Investment Year Started CEF-EE $1 billion 2020 5 years (A) 2020 CEF-EE Extension $280 million 2023 9 months 2023 CEF-EE Extension II $300 million 2024 6 months 2024 CEF-EE II $2.9 billion 2024 6 years 2025 CEF-EV $166 million 2021 ~6 years 2021 Energy Strong II Program $842 million 2019 4 years (B) 2019 Gas System Modernization Program II (GSMP II) Extension $902 million 2023 2 years (C) 2024 Infrastructure Advancement Program (IAP) $511 million 2022 4 years 2022 (A) Rolling three-year program with over 80% of spending within 5 years, with limited spending thereafter.
Biggest changeInvestment Clause Programs The following table lists our major approved investment clause programs that are in progress: Program Investment Approval Date Term of Investment Year Started CEF-EE II $2.9 billion 2024 6 years 2025 CEF-EE $1.6 billion 2020 5 years (A) 2020 Gas System Modernization Program (GSMP) III $1.4 billion 2025 3 years (B) 2026 GSMP II Extension $902 million 2023 2 years (C) 2024 Infrastructure Advancement Program (IAP) $511 million 2022 4 years 2022 CEF-EV $166 million 2021 ~6 years 2021 (A) Rolling three-year program with over 80% of spending within 5 years, with limited spending thereafter.
As a result, electric gas sales volumes and demands are no longer a driver of our margin and over 90% of our Electric and Gas Distribution margin will only vary based upon the number of customers.
As a result, electric and gas sales volumes and demands are no longer a driver of our margin and over 90% of our Electric and Gas Distribution margin will only vary based upon the number of customers.
We take measures to provide employees with proper knowledge, training and protective equipment to maintain their personal health and safety and to mitigate workplace risks. Employee Experience & Engagement We provide our dedicated workforce the tools, the resources and an inclusive workplace culture to deliver safe and reliable energy to our customers.
We take measures to provide employees with proper knowledge, training and protective equipment to maintain their personal health and safety and to mitigate workplace risks. Employee Experience & Engagement We provide our dedicated workforce the tools, the resources and an inclusive workplace culture needed to deliver safe and reliable energy to our customers.
Additionally, there are on-site storage facilities for Salem, Hope Creek and Peach Bottom, which we believe have the capacity for at least five years of temporary storage for each facility. 17 Table of Contents INFORMATION ABOUT OUR EXECUTIVE OFFICERS (PSEG) Name Age as of December 31, 2024 Office Effective Date First Elected to Present Position Ralph A.
Additionally, there are on-site storage facilities for Salem, Hope Creek and Peach Bottom, which we believe have the capacity for at least five years of temporary storage for each facility. 17 Table of Contents INFORMATION ABOUT OUR EXECUTIVE OFFICERS (PSEG) Name Age as of December 31, 2025 Office Effective Date First Elected to Present Position Ralph A.
REGULAT ORY ISSUES In the ordinary course of our business, we are subject to regulation by, and are party to various claims and regulatory proceedings with FERC, the BPU, the Commodity Futures Trading Commission (CFTC) and various state and federal environmental regulators, among others. For information regarding material matters, other than those discussed below, see Item 8. Note 13.
REGULAT ORY ISSUES In the ordinary course of our business, we are subject to regulation by, and are party to various claims and regulatory proceedings with FERC, the BPU, the Commodity Futures Trading Commission (CFTC) and various state and federal environmental regulators, among others. For information regarding material matters, other than those discussed below, see Item 8. Note 12.
Our current approved transmission rates provide for a base ROE of 9.90% and a 50 basis point adder for our membership in PJM as an RTO. See Item 7. MD&A—Executive Overview of 2024 and Future Outlook for additional information. Distribution PSE&G distributes electricity and natural gas to end users in our respective franchised service territories.
Our current approved transmission rates provide for a base ROE of 9.90% and a 50 basis point adder for our membership in PJM as an RTO. See Item 7. MD&A—Executive Overview of 2025 and Future Outlook for additional information. Distribution PSE&G distributes electricity and natural gas to end users in our respective franchised service territories.
NRC requires operating nuclear power plant licensee and license applicants to ensure that digital computer and communication systems associated with a nuclear power plant’s safety, security, and emergency preparedness functions are protected from cyberattacks. As a result, computer systems at operating power plants that monitor and control safety systems and help the reactor operate are isolated from external communications.
NRC requires operating nuclear power plant licensees and license applicants to ensure that digital computer and communication systems associated with a nuclear power plant’s safety, security, and emergency preparedness functions are protected from cyberattacks. As a result, computer systems at operating power plants that monitor and control safety systems and help the reactor operate are isolated from external communications.
Once approved by the BPU, electricity prices for BGS service are set. Approximately one-third of PSE&G’s total BGS-RSCP eligible load is auctioned each year for a three-year term. For information on current prices, see Item 8. Note 13. Commitments and Contingent Liabilities.
Once approved by the BPU, electricity prices for BGS service are set. Approximately one-third of PSE&G’s total BGS-RSCP eligible load is auctioned each year for a three-year term. For information on current prices, see Item 8. Note 12. Commitments and Contingent Liabilities.
LaRossa 61 Chair of the Board (COB), President and Chief Executive Officer (CEO) - PSEG January 2023 to present President and CEO -PSEG September 2022 to present Chief Operating Officer (COO) - PSEG January 2020 to August 2022 COB and CEO - PSE&G September 2022 to present COB, President and CEO - PSEG Power May 2023 to present COB and CEO - PSEG Power September 2022 to May 2023 COB and CEO - Energy Holdings September 2022 to present COB, CEO and President - Services September 2022 to present President and COO - PSEG Power October 2017 to August 2022 President and COO - PSE&G October 2006 to October 2017 COB - PSEG Long Island LLC December 2020 to August 2022 Daniel J.
LaRossa 62 Chair of the Board (COB), President and Chief Executive Officer (CEO) - PSEG January 2023 to present President and CEO -PSEG September 2022 to present Chief Operating Officer (COO) - PSEG January 2020 to August 2022 COB and CEO - PSE&G September 2022 to present COB, President and CEO - PSEG Power May 2023 to present COB and CEO - PSEG Power September 2022 to May 2023 COB and CEO - Energy Holdings September 2022 to present COB, CEO and President - Services September 2022 to present President and COO - PSEG Power October 2017 to August 2022 President and COO - PSE&G October 2006 to October 2017 COB - PSEG Long Island LLC December 2020 to August 2022 Daniel J.
The BPU has also approved a series of PSE&G infrastructure, EE, EV and renewable energy investment programs with cost recovery through various clause mechanisms. For a discussion of proposed and approved programs, see Investment Clause Programs as follows and Item 7. MD&A—Executive Overview of 2024 and Future Outlook.
The BPU has also approved a series of PSE&G infrastructure, EE, EV and renewable energy investment programs with cost recovery through various clause mechanisms. For a discussion of proposed and approved programs, see Investment Clause Programs as follows and Item 7. MD&A—Executive Overview of 2025 and Future Outlook.
It is updated regularly on matters related to culture, executive compensation, and leadership succession and development. Safety metrics, such as Occupational Safety and Health Administration (OSHA) recordable incidence rate, OSHA days away from work rate, and serious injury incidence rate, are regularly monitored and reported to our Board.
It is updated regularly on matters related to culture, executive compensation, and leadership succession and development. Safety metrics, such as leading indicators, serious injury rate, Occupational Safety and Health Administration (OSHA) recordable incidence rate, and OSHA days away from work rate, are regularly monitored and reported to our Board.
For additional information related to environmental matters, including proceedings not discussed below, as well as anticipated expenditures for installation of compliance technology, hazardous substance liabilities and fuel and waste disposal costs, see Item 1A. Risk Factors and Item 8. Note 13. Commitments and Contingent Liabilities.
For additional information related to environmental matters, including proceedings not discussed below, as well as anticipated expenditures for installation of compliance technology, hazardous substance liabilities and fuel and waste disposal costs, see Item 1A. Risk Factors and Item 8. Note 12. Commitments and Contingent Liabilities.
In 2022, the BPU approved an extension of the long-term BGSS contract to March 31, 2027, and thereafter the contract remains in effect unless terminated by either party with a two-year notice. 5 Table of Contents PSEG Power supplies PSE&G’s peak daily gas requirements through its balanced portfolio of firm gas transportation capacity, storage contracts, contract peaking supply, and liquefied natural gas and propane.
In 2022, the BPU approved an extension of the long-term BGSS contract to March 31, 2027, and thereafter the contract remains in effect unless terminated by either party with a two-year notice. PSEG Power supplies PSE&G’s peak daily gas requirements through its balanced portfolio of firm gas transportation capacity, storage contracts, contract peaking supply, and liquefied natural gas and propane.
Anticipated demand growth and the pace of that relative to retirements of existing firm generation and new additions of intermittent and firm generation capacity, as well as subsidized generation capacity, or technological advances could impact forward market prices in the future. PJM has a capacity market that has been approved by FERC.
Anticipated demand growth and the pace of that relative to retirements of existing firm generation and new additions of intermittent and firm generation capacity, as well as subsidized generation capacity, or technological advances could impact forward market prices in the future. 8 Table of Contents PJM has a capacity market that has been approved by FERC.
Sixty percent of our workforce is represented by six unions under various collective bargaining agreements that cover wages, benefits and other terms and conditions of employment. Our current agreements with all six unions remain in place until 2027 and support strategic objectives and business goals.
Fifty-nine percent of our workforce is represented by six unions under various collective bargaining agreements that cover wages, benefits and other terms and conditions of employment. Our current agreements with all six unions remain in place until 2027 and support strategic objectives and business goals.
Commitments and Contingent Liabilities. In addition, information regarding PSE&G’s specific filings pending before the BPU is discussed in Item 8. Note 6. Regulatory Assets and Liabilities.
Commitments and Contingent Liabilities. In addition, information regarding PSE&G’s specific filings pending before the BPU is discussed in Item 8. Note 5. Regulatory Assets and Liabilities.
The Transportation Security Administration, an agency of the U.S.DHS, has issued multiple security directives since May 2021 designed to mitigate cybersecurity threats to natural gas pipelines.
The Transportation Security Administration, an agency of the DHS, has issued multiple security directives since May 2021 designed to mitigate cybersecurity threats to natural gas pipelines.
ZEC revenue recorded is reduced by the 6 Table of Contents estimated production tax credits (PTCs) generated from PSEG Power’s Salem 1, Salem 2, and Hope Creek nuclear plants. ZEC revenue will be adjusted based upon the actual amount of the PTCs when guidance is issued on how to calculate gross receipts and that adjustment could be material.
ZEC revenue recorded was reduced by the estimated PTCs generated from PSEG Power’s Salem 1, Salem 2, and Hope Creek nuclear plants. ZEC revenue will be adjusted based upon 6 Table of Contents the actual amount of the PTCs when guidance is issued on how to calculate gross receipts and that adjustment could be material.
The Order provides for a $17.8 billion rate base, a 9.6% return on equity for PSE&G’s distribution business and a 55% equity component of its capitalization structure. For additional information, see Item 8. Note 6. Regulatory Assets and Liabilities.
The Order provided for a $17.8 billion rate base, a 9.6% return on equity for PSE&G’s distribution business and a 55% equity component of its capitalization structure. For additional information, see Item 8. Note 5. Regulatory Assets and Liabilities.
Our load requirements are split among commercial, residential and industrial customers, as shown in the following table for 2024: % of 2024 Sales Customer Type Electric Gas Commercial 57 % 38 % Residential 34 % 58 % Industrial 9 % 4 % Total 100 % 100 % Our customer base has modestly increased since 2020, with electric and gas loads changing as illustrated in the following table: Electric and Gas Distribution Statistics Number of Customers as of December 31, 2024 Historical Annual Customer Growth 2020-2024 Electric Sales and Firm Gas Sales for the Year Ended December 31, 2024 (A) Historical Annual Load Decline 2020-2024 Electric 2.4 Million 0.9% 40,651 Gigawatt hours — Gas 1.9 Million 0.7% 2,371 Million Therms (1.7)% (A) Excludes sales from Gas rate classes that do not impact margin, specifically Contract, Non-Firm Transportation, Cogeneration Interruptible and Interruptible Services. 3 Table of Contents As part of the BPU's approval of the Clean Energy Future-Energy Efficiency (CEF-EE) filing in 2021, we implemented the Conservation Incentive Program (CIP) that trues up PSE&G’s distribution margin to a rate case-approved baseline per customer for the majority of our customers.
Our load requirements are split among commercial, residential and industrial customers, as shown in the following table for 2025: % of 2025 Sales Customer Type Electric Gas Commercial 57 % 38 % Residential 34 % 58 % Industrial 9 % 4 % Total 100 % 100 % Our customer base has modestly increased since 2021, with electric and gas loads changing as illustrated in the following table: Electric and Gas Distribution Statistics Customers as of December 31, 2025 Historical Annual Customer Growth 2021-2025 Electric Sales and Firm Gas Sales for the Year Ended December 31, 2025 (A) Historical Annual Load Increase 2021-2025 Electric 2.4 million 0.9% 40,561 Gigawatt Hours 0.4% Gas 1.9 million 0.7% 2,633 Million Therms 2.1% (A) Excludes sales from Gas rate classes that do not impact margin, specifically Contract, Non-Firm Transportation, Cogeneration Interruptible and Interruptible Services. 3 Table of Contents As part of the BPU's approval of the Clean Energy Future-Energy Efficiency (CEF-EE) filing in 2021, we implemented the Conservation Incentive Program (CIP) that trues up PSE&G’s distribution margin to a rate case-approved baseline per customer for the majority of our customers.
Cregg 61 Executive Vice President (EVP) and Chief Financial Officer (CFO) - PSEG October 2015 to present EVP and CFO - PSE&G October 2015 to present EVP and CFO - PSEG Power October 2015 to present Kim C.
Cregg 62 Executive Vice President (EVP) and Chief Financial Officer (CFO) - PSEG October 2015 to present EVP and CFO - PSE&G October 2015 to present EVP and CFO - PSEG Power October 2015 to present Kim C.
For additional information and a discussion of risks, see Item 1A. Risk Factors, Item 7. MD&A—Executive Overview of 2024 and Future Outlook and Item 8. Note 13. Commitments and Contingent Liabilities. Markets and Market Pricing All of PSEG Power’s nuclear generation assets are located within the PJM RTO.
For additional information and a discussion of risks, see Item 1A. Risk Factors, Item 7. MD&A—Executive Overview of 2025 and Future Outlook and Item 8. Note 12. Commitments and Contingent Liabilities. Markets and Market Pricing All of PSEG Power’s nuclear generation assets are located within the PJM RTO.
State —The BPU requires utilities, including PSE&G, to, among other things, implement a cybersecurity program that defines and implements organizational accountabilities and responsibilities for cyber risk management activities, and 15 Table of Contents establishes policies, plans, processes and procedures for identifying and mitigating cyber risk to critical systems.
State —The BPU requires utilities, including PSE&G, to, among other things, implement a cybersecurity program that defines and implements organizational accountabilities and responsibilities for cyber risk management activities, and establishes policies, plans, processes and procedures for identifying and mitigating cyber risk to critical systems.
(B) The program has a small amount of trailing costs expected to be spent in year 5. (C) The program has a small amount of trailing costs expected to be spent in year 3.
(B) The program has a small amount of trailing costs expected to be spent in year 4. (C) The program has a small amount of trailing costs expected to be spent in year 3.
For a requesting company to receive MBR authority, FERC 11 Table of Contents must first determine that the requesting company lacks market power in the relevant markets and/or that market power in the relevant markets is sufficiently mitigated. Certain PSEG companies are public utilities and currently have MBR authority.
For a requesting company to receive MBR authority, FERC must first determine that the requesting company lacks market power in the relevant markets and/or that market power in the relevant markets is sufficiently mitigated. Certain PSEG companies are public utilities and currently have MBR authority.
Chernick 61 VP and Controller - PSEG March 2019 to present VP and Controller - PSE&G March 2019 to present VP and Controller - PSEG Power March 2019 to present 18 Table of Contents
Chernick 62 VP and Controller - PSEG March 2019 to present VP and Controller - PSE&G March 2019 to present VP and Controller - PSEG Power March 2019 to present 18 Table of Contents
PSEG Power’s nuclear plants are expected to benefit from the PTC. The expected PTC rate is up to $15 per megawatt hour (MWh) subject to adjustment based upon a facility’s gross receipts and meeting prevailing wage rules. The PTC rate and the gross receipts threshold are subject to annual inflation adjustments. Until additional guidance is issued by the U.S.
The expected PTC rate is up to $15 per megawatt hour (MWh) subject to adjustment based upon a facility’s gross receipts and meeting prevailing wage rules. The PTC rate and the gross receipts threshold are subject to annual inflation adjustments. Until additional guidance is issued by the U.S.
The court found that FERC failed to properly consider the environmental consequences of the project, and the alleged lack of market demand for additional natural gas capacity in New Jersey. In January 2025, FERC responded to the Circuit Court’s concerns and reinstated its approval of the project. PSEG is continuing to monitor this proceeding.
The court found that FERC failed to properly consider the environmental consequences of the project, and the alleged lack of market demand for additional natural gas capacity in New Jersey. In January 2025, FERC responded to the Circuit Court’s concerns and reinstated its approval of the project.
Under the OSA, PSEG LI acts as LIPA’s agent in performing many of its obligations and in return (a) is prefunded for pass-through operating expenditures, (b) receives a fixed management fee and (c) is eligible to receive an incentive fee contingent on meeting established performance metrics.
The competitor filed an appeal in January 2026. 7 Table of Contents Under the OSA, PSEG LI acts as LIPA’s agent in performing many of its obligations and in return (a) is prefunded for pass-through operating expenditures, (b) receives a fixed management fee and (c) is eligible to receive an incentive fee contingent on meeting established performance metrics.
PSEG will continue to evaluate opportunities to participate in transmission solicitation processes and may decide to submit bids for these opportunities, some of which could be material investments. For additional information, see Item 7. MD&A— Executive Overview of 2024 and Future Outlook. Energy Holdings Energy Holdings maintains our portfolio of legacy lease investments. See Item 8. Note 8.
We cannot predict the outcome. PSEG will continue to evaluate opportunities to participate in transmission solicitation processes and may decide to submit bids for these opportunities, some of which could be material investments. For additional information, see Item 7. MD&A— Executive Overview of 2025 and Future Outlook. Energy Holdings Energy Holdings maintains our portfolio of legacy lease investments.
At present, all units, including those owned by PSEG, within a delivery zone receive a clearing price based on the bid of the marginal unit (i.e., the last unit that must be dispatched to serve the needs of load) which can vary by location.
FERC rules also govern the overall design of these markets. At present, all units, including those owned by PSEG, within a delivery zone receive a clearing price based on the bid of the marginal unit (i.e., the last unit that must be dispatched to serve the needs of load) which can vary by location.
PSEG Power’s Salem 1, Salem 2 and Hope Creek nuclear plants have also been awarded zero emission certificates (ZECs) by the BPU through May 2025. These nuclear plants are expected to receive ZEC revenue from the electric distribution companies (EDCs) in New Jersey, which is equivalent to approximately $10/MWh.
PSEG Power’s Salem 1, Salem 2 and Hope Creek nuclear plants were also awarded zero emission certificates (ZECs) by the BPU through May 2025. These nuclear plants received ZEC revenue from the electric distribution companies (EDCs) in New Jersey, which was equivalent to approximately $10/MWh.
Based upon the availability of natural gas beyond PSE&G’s actual daily needs, PSEG Power sells gas to other customers and shares these proceeds with PSE&G’s customers. How PSEG Power’s Nuclear Generation Operates As of December 31, 2024, PSEG Power had 3,758 MW of nuclear generation capacity. All of our nuclear generation capacity is located in New Jersey and Pennsylvania.
Based upon the availability of natural gas beyond PSE&G’s actual daily needs, PSEG Power sells gas to other customers and shares these proceeds with PSE&G’s customers. How PSEG Power’s Nuclear Generation Operates As of December 31, 2025, PSEG Power had 3,758 MW of nuclear generation capacity.
Compliance Reliability Standards— PSEG is required to comply with the North American Electric Reliability Corporation (NERC) Reliability Standards, promulgated by NERC and approved by FERC, which are designed to ensure the security and reliability of the United States electric transmission and generation system (the “electric grid”).
PJM will also be considering other reforms to its markets. Compliance Reliability Standards— PSEG is required to comply with the North American Electric Reliability Corporation (NERC) Reliability Standards, promulgated by NERC and approved by FERC, which are designed to ensure the security and reliability of the United States electric transmission and generation system (the “electric grid”).
The following chart presents our total employee population indicating percentages of employees that are represented by a labor organization: 9 Table of Contents As of December 31, 2024, women constituted approximately 27% of our non-represented employees and 19% of our total workforce. People who are racially/ethnically diverse constituted approximately 34% of our non-represented employees and 30% of our total workforce.
The following chart presents our total employee population indicating percentages of employees that are represented by a labor organization: As of December 31, 2025, women constituted approximately 28% of our non-represented employees and 19% of our total workforce. People who are racially/ethnically diverse constituted approximately 36% of our non-represented employees and 31% of our total workforce.
McFeaters 65 President and Chief Nuclear Officer - PSEG Nuclear LLC May 2023 to present SVP - Nuclear Operations - PSEG Nuclear LLC November 2020 to May 2023 Vice President (VP) - Salem Generating Station - PSEG Nuclear LLC October 2016 to November 2020 Grace Park 49 EVP and General Counsel - PSEG September 2024 to present EVP and General Counsel - PSE&G September 2024 to present EVP and General Counsel - PSEG Power September 2024 to present VP - Deputy General Counsel and Chief Litigation Counsel - Services July 2020 to September 2024 Sheila J.
McFeaters 66 President and Chief Nuclear Officer - PSEG Nuclear LLC May 2023 to present SVP - Nuclear Operations - PSEG Nuclear LLC November 2020 to May 2023 Grace Park 50 EVP and General Counsel - PSEG September 2024 to present EVP and General Counsel - PSE&G September 2024 to present EVP and General Counsel - PSEG Power September 2024 to present VP - Deputy General Counsel and Chief Litigation Counsel - Services July 2020 to September 2024 Sheila J.
Typically, the bid price of the last unit dispatched by PJM establishes the energy market-clearing price. This method of determining supply and pricing creates a situation where natural gas prices often have a major influence on the price that generators will receive for their output, especially in periods of relatively strong or weak demand.
This method of determining supply and pricing creates a situation where natural gas prices often have a major influence on the price that generators will receive for their output, especially in periods of relatively strong or weak demand.
To date, we launched three of the four components of our CEF : • EE —designed to achieve EE targets required under New Jersey’s Clean Energy Act through a suite of ten programs for residential, C&I programs, including low-income, multi-family, small business and local government. • Energy Cloud (EC) —driven by the implementation of “smart meters,” and new software and product solutions to improve our processes and better manage the electric grid. • EV —primarily relating to preparatory work to deliver infrastructure to the charging point for three programs: residential smart charging; Level-2 mixed use charging; and direct current (dc) fast charging.
To date, we launched three of the four components of our CEF : • EE —designed to achieve EE targets required under New Jersey’s Clean Energy Act through a suite of ten programs for residential, C&I programs, including low-income, multi-family, small business and local government. • Energy Cloud (EC) —driven by the implementation of “smart meters,” and new software and product solutions to improve our processes and better manage the electric grid.
Energy Clearing Prices Energy clearing prices in the markets in which we operate are generally based on bids submitted by generating units. Under FERC-approved market rules, bids are subject to price caps and mitigation rules applicable to certain generation units. FERC rules also govern the overall design of these markets.
We cannot predict the outcome of these matters. 11 Table of Contents Energy Clearing Prices Energy clearing prices in the markets in which we operate are generally based on bids submitted by generating units. Under FERC-approved market rules, bids are subject to price caps and mitigation rules applicable to certain generation units.
Energy Strong II Program —structured to harden, modernize and improve the resiliency of our electric and gas distribution systems. IAP —designed to improve the reliability of the “last mile” of our electric distribution system and address aging substations and gas metering and regulation stations. See Item 7. MD&A—Executive Overview of 2024 and Future Outlook for additional information.
IAP —designed to improve the reliability of the “last mile” of our electric distribution system and address aging substations and gas metering and regulation stations. See Item 7. MD&A—Executive Overview of 2025 and Future Outlook for additional information.
Generally, we seek to hedge the financial risks of our generation through sales at PJM West or other nodes corresponding to our generation portfolio. Our hedge transactions in PJM generally reflect energy sales at the liquid PJM Western Hub or other basis locations when available and other transactions that seek to secure price certainty for our energy output.
Our hedge transactions in PJM generally reflect energy sales at the liquid PJM Western Hub or other basis locations when available and other transactions that seek to secure price certainty for our energy output.
In October 2024, FERC issued a Final Rule that eliminates compensation for reactive power in circumstances when the generator is operating within the normal power factor range specified in its interconnection agreement. PSEG Power currently receives reactive power compensation, and we have sought rehearing of this Final Rule.
In October 2024, FERC issued a Final Rule that eliminates compensation for reactive power in circumstances when the generator is operating within the normal power factor range specified in its interconnection agreement.
COMPETIT IVE ENVIRONMENT PSE&G Our T&D business is not affected when customers choose alternate electric or gas suppliers since we earn our return on our net investment in rate base to provide T&D service, not by supplying the commodity.
See Item 8. Note 7. Long-Term Investments and Note 8. Financing Receivables for additional information. COMPETIT IVE ENVIRONMENT PSE&G Our T&D business is not affected when customers choose alternate electric or gas suppliers since we earn our return on our net investment in rate base to provide T&D service, not by supplying the commodity.
These companies, which include PSEG Energy Resources & Trading LLC, PSEG Nuclear LLC and PSE&G must file at FERC every three years to update their market power analyses. At the end of 2022, PSEG filed such a market power update at FERC, which remains pending.
These companies, which include PSEG Energy Resources & Trade LLC, PSEG Nuclear LLC and PSE&G must file at FERC every three years to update their market power analyses. At the end of 2025, PSEG filed an updated market power analysis.
Rostiac 54 SVP - Human Resources, Chief Human Resources and Chief Diversity Officer - Services January 2020 to present SVP - Human Resources and Chief Human Resources Officer - Services September 2019 to January 2020 Richard T. Thigpen 64 SVP - Corporate Citizenship - Services July 2018 to present Rose M.
Rostiac 55 SVP - Chief Administrative Officer and Chief Human Resources Officer - Services January 2020 to present Richard T. Thigpen 65 SVP - Corporate Citizenship - Services July 2018 to present Rose M.
Nuclear Nuclear Regulatory Commission (NRC) Our operation of nuclear generating facilities is subject to comprehensive regulation by the NRC, a federal agency established to regulate nuclear activities to ensure the protection of public health and safety, as well as the environment.
Entities such as PSEG began complying with the rules in 2022. 12 Table of Contents Nuclear Nuclear Regulatory Commission (NRC) Our operation of nuclear generating facilities is subject to comprehensive regulation by the NRC, a federal agency established to regulate nuclear activities to ensure the protection of public health and safety, as well as the environment.
In February 2025, FERC issued a show cause order directing PJM and PJM transmission owners to explain within 30 days why the PJM tariff is just and reasonable or, alternatively, what revisions might be necessary, to address perceived gaps in the PJM tariff with respect to co-located load arrangements. We cannot predict the outcome of these proceedings.
In February 2025, FERC issued a “show cause” order directing PJM and PJM transmission owners to explain why the PJM tariff is just and reasonable or, alternatively, what revisions might be necessary to address perceived gaps in the PJM tariff with respect to co-located load arrangements.
That growth can be affected by customer cost pressures which could result from higher commodity costs, higher supply costs to support subsidized renewable generation, higher operating costs, higher tax rates, macro-economic conditions including inflation, and other factors.
That growth can be affected by customer cost pressures which could result from higher commodity costs, higher supply costs to support subsidized renewable generation, higher operating costs, higher tax rates, macro-economic conditions including inflation, and other factors. Further, technological advances could impact the rate of growth of our gas and electric T&D businesses.
Beginning in 2024, our hedging strategy has incorporated an estimated range of risk reduction impacts from the PTCs on our nuclear generation portfolio while retaining the ability to benefit when market pricing exceeds the phase out threshold.
Our hedging strategy has incorporated an estimated range of risk reduction impacts from the PTCs on our nuclear generation portfolio while retaining the ability to benefit when market pricing exceeds the level at which we would receive PTCs.
In December 2023, PJM awarded us an approximately $424 million project to construct a 500 kV transmission line to address increasing load and reliability issues in Maryland and northern Virginia as part of its 2022 Window 3 competitive solicitation. PJM directed that the project be placed in service in 2027.
Competitively Bid, FERC Regulated Transmission PSEG continues to evaluate investment opportunities in regulated transmission. In December 2023, PJM awarded us an approximately $424 million project to construct a 500 kV transmission line to address increasing load and reliability issues in Maryland and northern Virginia as part of its 2022 Window 3 competitive solicitation.
As a holding company, our profitability depends on our subsidiaries’ operating results. We principally conduct our business through two direct wholly owned subsidiaries, PSE&G and PSEG Power LLC (PSEG Power), described below, each of which also has its principal executive offices at 80 Park Plaza, Newark, New Jersey 07102.
We principally conduct our business through two direct wholly owned subsidiaries, PSE&G and PSEG Power LLC (PSEG Power), described below, each of which also has its principal executive offices at 80 Park Plaza, Newark, New Jersey 07102. • PSE&G —A New Jersey corporation, incorporated in 1924, which is a franchised public utility in New Jersey.
In addition, New York’s Stop Hacks and Improve Electronic Data Security (SHIELD) Act, which became effective in March 2020, requires businesses that own or license computerized data that includes New York State residents’ private information to implement reasonable safeguards to protect that information.
In addition, New York’s Stop Hacks and Improve Electronic Data Security (SHIELD) Act, which became effective in March 2020, requires businesses that own or license computerized data that includes New York State residents’ private information to implement reasonable safeguards to protect that information. 15 Table of Contents ENVIRONMEN TAL MATTERS We are subject to federal, state and local laws and regulations with regard to environmental matters.
Our nuclear generating units’ performance, market prices and the PTC, have a considerable effect on our profitability. The PTC is designed to increase with inflation, and therefore, future inflation levels will impact the financial support of the nuclear units. In addition, market revenues in excess of the PTC threshold would provide incremental benefit.
The PTC is designed to increase with inflation, and therefore, future inflation levels will impact the potential financial support for our nuclear units. In addition, market revenues in excess of the PTC threshold provide opportunity for incremental benefit.
FERC has extensive oversight 10 Table of Contents over such public utilities.
FERC has extensive oversight over such public utilities.
Separately, in July 2024, BPU Staff convened a working group to develop recommendations for integrated distribution planning for distributed energy resources. We cannot predict the impact on our business or results of operations from this Grid Modernization plan or any laws, rules or regulations promulgated as a result thereof, particularly as they may relate to PSE&G’s electric distribution assets.
We cannot predict the impact on our business or results of operations from this Grid Modernization plan or any 14 Table of Contents laws, rules or regulations promulgated as a result thereof, particularly as they may relate to PSE&G’s electric distribution assets.
It includes hiring ahead of attrition for skilled trade roles, community outreach, workforce development and strategic sourcing with key external partners like trade schools, colleges, county workforce development boards, and other non-profit partners. We value the growth and development of all our employees and offer a variety of opportunities to enhance their skills and abilities.
We have a comprehensive workforce planning strategy to support our hiring needs. It includes hiring ahead of attrition for skilled trades roles, community outreach, workforce development and strategic sourcing with key external partners like trade schools, colleges, county workforce development boards, and other non-profit partners.
The filing also includes demand response programs and building decarbonization programs. BGS Process —In June 2024, New Jersey’s EDCs, including PSE&G, filed their annual joint proposal for the conduct of the February 2025 BGS auction covering energy years 2026 through 2028.
BGS Process —In July 2025, New Jersey’s EDCs, including PSE&G, filed their annual joint proposal for the conduct of the February 2026 BGS auction covering energy years 2027 through 2029.
Fish and Wildlife Service proposed to designate the monarch butterfly as a “threatened” species under the federal Endangered Species Act. PSEG is unable to determine the impact of this development. Fuel and Waste Disposal Nuclear Fuel Disposal —The federal government has entered into contracts with the operators of nuclear power plants for transportation and ultimate disposal of spent nuclear fuel.
PSEG is unable to determine the impact of this development. 16 Table of Contents Fuel and Waste Disposal Nuclear Fuel Disposal —The federal government has entered into contracts with the operators of nuclear power plants for transportation and ultimate disposal of spent nuclear fuel.
The CFTC finalized new rules establishing federal position limits for trading in certain commodities, such as natural gas. Entities such as PSEG began complying with the rules on January 1, 2022.
The CFTC finalized rules establishing federal position limits for trading in certain commodities, such as natural gas.
We hold talent reviews and succession discussions regularly for leadership and critical positions to support workforce planning. We use tailored development opportunities and other tools to build a strong internal pipeline that is ready to take the next step in their careers. We continue to focus on upskilling our skilled trade roles to adapt to evolving technologies and digital advancements.
We use tailored development opportunities and other tools to build a strong internal pipeline that is ready to take the next step in their careers. We continue to focus on upskilling roles to adapt to evolving technologies and digital advancements. Total Rewards Program We support the wellbeing of our employees through a comprehensive total rewards program.
We are also subject to various other states’ regulations due to our operations in those states. Our New Jersey utility operations are subject to comprehensive regulation by the BPU including, among other matters, regulation of retail electric and gas distribution rates and service, the issuance and sale of certain types of securities and compliance matters.
Our New Jersey utility operations are subject to comprehensive regulation by the BPU including, among other matters, regulation of retail electric and gas distribution rates and service, the issuance and sale of certain types of securities and compliance matters. In addition to base rates, we recover certain costs or earn on certain investments pursuant to mechanisms known as adjustment clauses.
Transmission Rate Proceedings and ROE —From time to time, various matters are pending before FERC relating to, among other things, transmission planning and transmission rates and returns, including incentives. Depending on their outcome, any of these matters could materially impact our results of operations and financial condition.
Transmission Rate Proceedings and ROE —From time to time, various matters are pending before FERC relating to, among other things, transmission planning and transmission rates and returns, including incentives.
There may also be opportunities to expand into related clean energy areas, such as renewable natural gas, hydrogen, energy storage, additional solar and renewables, and broader EE investments, though utility participation in these areas is subject to regulatory approval and market design, which continues to evolve.
There may also be opportunities to expand into related energy infrastructure, including generation and storage, though participation in these areas is subject to regulatory approval and market design, which continues to evolve.
As of December 31, 2024, we expect that our hedged position for 2025 in conjunction with the PTC and market price variability will result in the realized value of our nuclear generation output being at, or above, the PTC phase out. Our strategy will continue to evolve given PTC guidance uncertainty, and potential incremental changes upon final U.S. Treasury guidance.
As of December 31, 2025, we expect that our current portfolio position for 2026 will result in the realized value of our nuclear generation output being above the level at which we would receive PTCs. Our strategy may continue to evolve taking into account energy market conditions, PTC guidance uncertainty, and potential incremental changes upon receiving U.S. Treasury guidance.
Treasury, the final realized value of the PTC is subject to adjustment, which may be material. PSEG Power also sells wholesale natural gas, primarily through a full-requirements BGSS contract with PSE&G to meet the needs of PSE&G’s default service customers.
These products and services may also be hedged through exchange markets or bilaterally. PSEG Power also sells wholesale natural gas, primarily through a full-requirements BGSS contract with PSE&G to meet the needs of PSE&G’s default service customers.
ENVIRONMEN TAL MATTERS We are subject to federal, state and local laws and regulations with regard to environmental matters. Our associated obligations change as legislatures and regulators pass new laws and regulations and amend existing ones. Therefore, it is difficult to project future costs of compliance and their impact on competition.
Our associated obligations change as legislatures and regulators pass new laws and regulations and amend existing ones. Therefore, it is difficult to project future costs of compliance and their impact on competition. The costs of compliance associated with any new requirements that may be imposed by future regulations are not known but may be material.
Hanemann 61 President and COO - PSE&G June 2021 to present Senior Vice President (SVP) and COO - PSE&G January 2020 to June 2021 SVP - Electric Transmission and Distribution - PSE&G September 2018 to January 2020 Tamara L.
Hanemann 62 President and COO - PSE&G June 2021 to present Senior Vice President (SVP) and COO - PSE&G January 2020 to June 2021 Charles V.
Performance is generally measured by the unit’s “capacity factor,” or the ratio of the actual output to the theoretical maximum output. In PJM, owners of power plants specify prices at which they are prepared to generate and sell energy based on the marginal cost of generating energy from each individual unit.
In PJM, owners of power plants specify prices at which they are prepared to generate and sell energy based on the marginal cost of generating energy from each individual unit. Typically, the bid price of the last unit dispatched by PJM establishes the energy market-clearing price.
Due to the increasing sophistication of physical and cyber security threats to the security and reliability of the electric grid, it is anticipated that FERC and NERC will continue to promulgate new Reliability Standards, and modify existing Reliability Standards, to meet these challenges. 12 Table of Contents CFTC In accordance with the Dodd-Frank Wall Street Reform and Consumer Protection Act, the SEC and the CFTC continue to implement a regulatory framework for swaps and security-based swaps.
Due to the increasing sophistication of physical and cyber security threats to the security and reliability of the electric grid, it is anticipated that FERC and NERC will continue to promulgate new Reliability Standards, and modify existing Reliability Standards, to meet these challenges.
NRC has existing requirements, effective processes, and the expertise to regulate and inspect cybersecurity to ensure the federal requirements are met. NERC continues to examine revising criteria for low-impact cyber systems, which could result in expanding the Critical Infrastructure Protection standards to a larger set of applicable cyber assets.
NERC continues to examine revising criteria for low-impact cyber systems, which could result in expanding the Critical Infrastructure Protection standards to a larger set of applicable cyber assets. NERC Critical Infrastructure Protection standards do not apply to nuclear facilities which are instead governed by the NRC for purposes of physical and cyber security.
This second license renewal would extend the operating licenses through 2056 and 2060 for Salem Units 1 and 2, respectively, and 2066 for Hope Creek. State Regulation Our principal state regulator is the BPU, which oversees electric and natural gas distribution companies in New Jersey.
This second license renewal would extend the operating licenses through 2056 and 2060 for Salem Units 1 and 2, respectively, and 2066 for Hope Creek.
Our nuclear fuel commitments cover approximately 100% of our estimated uranium, enrichment and fabrication requirements through 2027 and a significant portion through 2028. 7 Table of Contents LIPA Operations Services Agreement (OSA) 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 expires on December 31, 2025.
Our fuel strategy is to maintain certain levels of uranium in inventory and to make periodic purchases to support such levels. LIPA Operations Services Agreement (OSA) 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.
Our CEF-Energy Storage (ES) program, which was filed with the BPU in October 2018, is being held in abeyance. GSMP II Extension —designed to replace at least 400 miles of cast iron and unprotected steel mains and services in our gas system.
GSMP III —designed to replace at least 600 miles of cast iron and unprotected steel mains and services in our gas system. GSMP II Extension —designed to replace at least 400 miles of cast iron and unprotected steel mains and services in our gas system.
Total Rewards Program We support the well-being of our employees through a comprehensive total rewards program. We provide competitive compensation to our workforce and a benefit program that is designed to support emotional and physical health as well as financial wellness and wellbeing.
We provide competitive compensation to our workforce and offer a benefits program that is designed to support physical, emotional, social and financial wellbeing.
We seek to offer opportunities that are relevant and accessible to all employees, including community outreach, volunteerism, mentorship, recognition and professional development. To determine if we are being responsive to the needs of our employees, we routinely assess the impact of our work by soliciting employee feedback through focus groups, listening sessions, pulse surveys and a biennial employee engagement survey.
To determine if we are being responsive to the needs of our employees, we routinely assess the impact of our work by soliciting employee feedback through focus groups, listening sessions, pulse surveys and a biennial employee engagement survey. Talent Management Our recruitment strategy is focused on hiring a workforce to meet our business objectives, including critical skilled trades roles.
Grid Modernization —In June 2022, following a stakeholder proceeding, the BPU Staff issued a report containing findings and recommendations to update the BPU’s interconnection regulations and processes. In furtherance of the recommendations, in June 2024 the BPU amended its interconnection rules to speed up the interconnection of renewable resources to the distribution grid.
Rates resulting from the February 2026 BGS auction will become effective June 1, 2026. Grid Modernization —In June 2022, following a stakeholder proceeding, the BPU Staff issued a report containing findings and recommendations to update the BPU’s interconnection regulations and processes.
PSE&G’s participation in solar, EV and EE programs is also regulated by the BPU, as the terms and conditions of these programs are approved by the BPU. BPU regulation can also have a direct or indirect impact on our power generation business as it relates to energy supply agreements and energy policy in New Jersey.
BPU regulation can also have a direct or indirect impact on our power generation business as it relates to energy supply agreements and energy policy in New Jersey. New Jersey Energy Master Plan (EMP) and Future of Gas Stakeholder Proceeding —In June 2022, the BPU commenced a proceeding to update New Jersey’s EMP.
In a rulemaking proceeding issued in 2021, FERC proposed to eliminate the existing 50 basis point adder for RTO membership, which is currently available to PSE&G and other transmission owners in RTOs. Elimination of the RTO adder for RTO membership would reduce PSE&G’s annual Net Income and annual cash inflows by approximately $40 million.
Depending on their outcome, any of these matters could materially impact our results of operations and financial condition. 10 Table of Contents In a rulemaking proceeding issued in 2021, FERC proposed to eliminate the existing 50 basis point adder for RTO membership, which is currently available to PSE&G and other transmission owners in RTOs.
The current operating licenses of our nuclear facilities expire in the years shown in the following table: Unit Year Salem Unit 1 2036 Salem Unit 2 2040 Hope Creek 2046 Peach Bottom Unit 2 (A) 2033 Peach Bottom Unit 3 (A) 2034 (A) Depreciation Expense and the Asset Retirement Obligation assume these units will operate through 2053 and 2054, respectively, given our expectation that previously approved operating license expiration dates will be restored by the NRC.
The current operating licenses of our nuclear facilities expire in the years shown in the following table: Unit Year Salem Unit 1 2036 Salem Unit 2 2040 Hope Creek 2046 Peach Bottom Unit 2 2053 Peach Bottom Unit 3 2054 In 2024, PSEG submitted a letter to the NRC regarding a potential timeline to seek a second license renewal for our Salem and Hope Creek units.
Hedging Strategy The PTC is intended to provide sufficient and stable support for nuclear units and was effective January 2024. To mitigate volatility in our results, we seek to contract in advance to hedge the price exposure for a significant portion of our anticipated electric output, capacity and fuel needs.
Our hedging practices help to manage some of the volatility of the nuclear generation business when forward prices are greater than the level at which we would receive PTCs. To mitigate volatility in our results, we seek to contract in advance to hedge the price exposure for a significant portion of our anticipated electric output, capacity and fuel needs.

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeClimate change-related political action and state and federal policy goals, including but not limited to those related to energy efficient targets, solar targets, energy storage targets, encouragement of electrification through EV adoption, policies to restrict the use of natural gas in new or existing homes and businesses, or encourage electrification of end use equipment currently fueled by natural gas, and the associated legislative and regulatory responses, may create financial risk as our operations may be subject to additional regulation at either the state or federal level in the future.
Biggest changeWhile the CIP protects PSE&G’s margin variances against changes in customer usage of gas and electricity, climate change-related state policy goals, including but not limited to those related to GHG emissions reductions, energy efficiency targets, solar targets, energy storage targets, encouragement of electrification through EV adoption, policies to encourage electrification of end use equipment currently fueled by natural gas, and the associated legislative and regulatory responses, may create additional costs for our customers and/or our business, which could be material. 20 Table of Contents We may be subject to climate change lawsuits that may seek injunctive relief, monetary compensation, penalties, and punitive damages, including but not limited to, for liabilities for damages related to mitigate harm caused by climate change.
We rely on information and operational technology systems and network infrastructure to operate our generation and T&D systems. We also store sensitive data, intellectual property and proprietary or personally identifiable information regarding our business, infrastructure, employees, shareholders, customers and vendors on our IT systems and conduct power marketing and hedging activities.
We rely on information and operational technology systems and network infrastructure to operate our generation and T&D systems and to conduct power marketing and hedging activities. We also store sensitive data, intellectual property and proprietary or personally identifiable information regarding our business, infrastructure, employees, shareholders, customers and vendors on our IT systems.
If a significant cybersecurity event or breach occurs within our company or with one of our material vendors, we could be exposed to significant loss of revenue, material repair costs to intellectual and physical property, significant fines and penalties if determined that we were in non-compliance with existing laws and regulations, significant litigation costs, increased costs to finance our businesses, negative publicity, damage to our reputation and loss of confidence from our customers, regulators, investors, vendors and employees.
If a significant cybersecurity event or breach occurs within our company or with one of our material vendors, we could be exposed to loss of revenue, repair costs to intellectual and physical property, fines and penalties if determined that we were in non-compliance with existing laws and regulations, litigation costs, increased costs to finance our businesses, negative publicity, damage to our reputation and loss of confidence from our customers, regulators, investors, vendors and employees.
In addition, we face risks with regard to the delivery to, and the use of nuclear fuel by, our power plants including the following: • creditworthiness of third-party suppliers, defaults by third-party suppliers on supply obligations and our ability to replace supplies currently under contract may delay or prevent timely delivery; 26 Table of Contents • market liquidity for physical supplies of such fuels or availability of related services (e.g., fabrication) may be insufficient or available only at prices that are not acceptable to us; • variation in the quality of such fuels may adversely affect our power plant operations; • domestic and foreign legislative or regulatory actions or requirements may impact the availability of and/or increase the cost of such fuels; and • the loss of critical infrastructure, acts of war or terrorist attacks (including cybersecurity breaches) or catastrophic events such as fires, earthquakes, explosions, floods, severe storms or other similar occurrences could impede the delivery of such fuels.
In addition, we face risks with regard to the delivery to, and the use of nuclear fuel by, our power plants including the following: • creditworthiness of third-party suppliers, defaults by third-party suppliers on supply obligations and our ability to replace supplies currently under contract may delay or prevent timely delivery; • market liquidity for physical supplies of such fuels or availability of related services (e.g., fabrication) may be insufficient or available only at prices that are not acceptable to us; • variation in the quality of such fuels may adversely affect our power plant operations; • domestic and foreign legislative or regulatory actions or requirements may impact the availability of and/or increase the cost of such fuels; and 26 Table of Contents • the loss of critical infrastructure, acts of war or terrorist attacks (including cybersecurity breaches) or catastrophic events such as fires, earthquakes, explosions, floods, severe storms or other similar occurrences could impede the delivery of such fuels.
The ability to arrange financing and to refinance existing debt and the costs of such financing or refinancing depend on numerous factors including, among other things: • general economic and capital market conditions, including but not limited to, prevailing interest rates; • the availability of credit from banks and other financial institutions; • tax, regulatory and securities law developments; • for PSE&G, our ability to obtain necessary regulatory approvals for the incurrence of additional indebtedness; • investor confidence in us, our regulatory environment and our industry; • our current level of indebtedness and compliance with covenants in our debt agreements; • the success of current projects and the quality of new projects; • the predictability of our cash flows; • our current and future capital structure; • our financial performance and the continued reliable operation of our business; and • maintenance of our investment grade credit ratings.
The ability to arrange financing and to refinance existing debt and the costs of such financing or refinancing depend on numerous factors including, among other things: • general economic and capital market conditions, including but not limited to, prevailing interest rates; • the availability of credit from banks and other financial institutions; • tax, regulatory and securities law developments; • for PSE&G, our ability to obtain necessary regulatory approvals for the incurrence of additional indebtedness; • investor confidence in us, our regulatory environment and our industry; • our current level of indebtedness and compliance with covenants in our debt instruments and credit agreements; • the success of current projects and the quality of new projects; • the predictability of our cash flows; • our current and future capital structure; • our financial performance and the continued reliable operation of our business; and • maintenance of our investment grade credit ratings.
The misappropriation, corruption or loss of personally identifiable information and other confidential data from us or one of our vendors could lead to significant breach notification expenses, mitigation expenses such as credit monitoring, and legal and regulatory fines and penalties.
The misappropriation, corruption or loss of personally identifiable information and other confidential data from us or one of our vendors could lead to breach notification expenses, mitigation expenses such as credit monitoring, and legal and regulatory fines and penalties.
Factors that may cause market price fluctuations include: • changes in demand on the system, which could be impacted by new large customers, including data centers, electrification and other factors; • increases and decreases in generation capacity, including the addition of new supplies of power as a result of the development of new power plants, expansion of existing power plants, continuing retirement of existing generation units, inability of new generating units to be placed online, the retention of power plants that were expected to be retired or recently retired units being returned to service, the extent to which those generating units are firm or intermittent, or additional transmission capacity; • severe weather conditions; • power supply disruptions, including power plant outages and transmission disruptions; • climate change, and weather conditions, particularly unusually mild summers or warm winters in our market areas; • seasonal fluctuations; • economic and political conditions that could negatively impact the demand for power or PTCs on our nuclear generation units; • changes in the supply of, and demand for, energy commodities; • development of new fuels or new technologies for the production or storage of power; • incurring penalties due to generation performance failure when called on by PJM during emergency situations; • federal and state regulations and actions of PJM and changing PJM market rules, including capacity market auction delays and/or rule changes that could materially impact prices; and • federal and state power, market and environmental regulation and legislation, including financial incentives for new renewable energy generation capacity that could lead to oversupply and price suppression.
Factors that may cause market price fluctuations include: • changes in demand on the system, which could be impacted by new large customers, including data centers, electrification and other factors; • increases and decreases in generation capacity, including the addition of new supplies of power as a result of the development of new power plants, expansion of existing power plants, continuing retirement of existing generation units, inability of, or delay in, new generating units being placed online, the retention of power plants that were expected to be 25 Table of Contents retired or recently retired units being returned to service, the extent to which those generating units are firm or intermittent, or additional transmission capacity; • severe weather conditions; • power supply disruptions, including power plant outages and transmission disruptions; • climate change, and weather conditions, particularly unusually mild summers or warm winters in our market areas; • seasonal fluctuations; • economic and political conditions that could negatively impact the demand for power or PTCs on our nuclear generation units; • changes in the supply of, and demand for, energy commodities; • development of new fuels or new technologies for the production or storage of power; • incurring penalties due to generation performance failure when called on by PJM during emergency situations; • federal and state regulations and actions of PJM and changing PJM market rules, including capacity market auction delays and/or rule changes that could materially impact prices; and • federal and state power, market and environmental regulation and legislation, including financial incentives for new renewable energy generation capacity that could lead to oversupply and price suppression.
If the markets, PTC and/or the ZEC program do not provide sufficient financial support, or, in the case of the Salem nuclear plants, decisions by the EPA and state environmental regulators regarding the implementation of Section 316(b) of the CWA and related state regulations, or other factors, PSEG Power may take all necessary steps to cease to operate all of these plants and will incur associated costs and accounting charges in the event that the financial condition of the plants is materially adversely impacted in the future.
If the markets or PTC do not provide sufficient financial support, or, in the case of the Salem nuclear plants, decisions by the EPA and state environmental regulators regarding the implementation of Section 316(b) of the CWA and related state regulations, or other factors, PSEG Power may take all necessary steps to cease to operate all of these plants and will incur associated costs and accounting charges in the event that the financial condition of the plants is materially adversely impacted in the future.
We may be adversely affected by asset and equipment failures, accidents, critical operating technology or business system failures, natural disasters, severe weather events, acts of war or terrorism or other acts of violence, sabotage, physical attacks or security breaches, cyberattacks, or other incidents, including pandemics, that impact our ability to provide safe and reliable service to our customers and remain competitive and could result in substantial financial losses.
We may be adversely affected by asset and equipment failures, gas explosions, accidents, critical operating technology or business system failures, natural disasters, severe weather events, acts of war or terrorism or other acts of violence, sabotage, physical attacks or security breaches, cyberattacks, or other incidents, including pandemics, that impact our ability to provide safe and reliable service to our customers and remain competitive and could result in substantial financial losses.
Failure to obtain these approvals on a timely basis could materially adversely affect our results of operations and cash flows. The markets, PTC and/or ZEC program may not provide sufficient financial support for our New Jersey nuclear plants which could result in the retirement of all of these nuclear plants. As further described in Item 7.
Failure to obtain these approvals on a timely basis could materially adversely affect our results of operations and cash flows. The markets, and/or PTC may not provide sufficient financial support for our New Jersey nuclear plants which could result in the retirement of all of these nuclear plants. As further described in Item 7.
Some issues that could impact the operation of our facilities are: • breakdown or failure of equipment, IT, processes or management effectiveness; • disruptions in the transmission of electricity; • labor disputes or work stoppages; • fuel supply interruptions; • limitations which may be imposed by environmental or other regulatory requirements; and • operator error, acts of war or terrorist attacks (including physical or cybersecurity breaches) or catastrophic events such as fires, earthquakes, explosions, floods, severe weather or other similar occurrences.
Some issues that could impact the operation of our facilities are: • breakdown or failure of equipment, IT, processes or management effectiveness; 27 Table of Contents • disruptions in the transmission of electricity; • labor disputes or work stoppages; • fuel supply interruptions; • limitations which may be imposed by environmental or other regulatory requirements; and • operator error, acts of war or terrorist attacks (including physical or cybersecurity breaches) or catastrophic events such as fires, earthquakes, explosions, floods, severe weather or other similar occurrences.
The enactment, amendment or repeal of federal or state tax legislation and/or the clarification of previously enacted tax laws, including U.S. Treasury guidance relating to the 15% CAMT, the nuclear PTC and other energy tax credit provisions, could have a material impact on our effective tax rate and cash tax position.
The enactment, amendment or repeal of federal or state tax legislation and/or the clarification of previously enacted tax laws, including U.S. Treasury guidance relating to the 15% CAMT, the nuclear PTC and other energy tax credit provisions, could have a material impact on our effective tax rate and cash tax position. ITEM 1B.
To address the risks to our information and operational technology systems, we maintain a cybersecurity program that includes policies and controls, cybersecurity insurance, cybersecurity governance and compliance, awareness training, table-top exercises, logging and monitoring, and testing. These preventative actions minimize the likelihood and potential impact of cybersecurity breaches.
To address the risks to our information and operational technology systems, we maintain a cybersecurity program that includes policies and controls, cybersecurity insurance, cybersecurity governance and compliance, awareness and training, table-top exercises, logging and monitoring, and testing. These preventative actions reduce the likelihood and potential impact of cybersecurity breaches.
In addition, if a unit cannot be operated through the end of its current estimated useful life, our results of operations could be adversely affected by increased depreciation rates, impairment charges and accelerated future decommissioning costs. Nuclear Incident or Accident Risk —Accidents and other unforeseen problems have occurred at nuclear stations, both in the U.S. and elsewhere.
In addition, if a unit cannot be operated through the end of its current estimated useful life, our results of operations could be adversely affected by increased depreciation rates, impairment charges and accelerated future decommissioning costs. 31 Table of Contents Nuclear Incident or Accident Risk —Accidents and other unforeseen problems have occurred at nuclear stations, both in the U.S. and elsewhere.
Any such event could have a material adverse effect on our financial condition or results of operations. 31 Table of Contents Operational Risk —Operations and equipment reliability at any of our nuclear facilities, whether operated by us or our co-owner, could degrade to the point where an affected unit needs to be shut down or operated at less than full capacity.
Any such event could have a material adverse effect on our financial condition or results of operations. Operational Risk —Operations and equipment reliability at any of our nuclear facilities, whether operated by us or our co-owner, could degrade to the point where an affected unit needs to be shut down or operated at less than full capacity.
For further discussion of environmental laws and regulations impacting our business, results of operations and financial condition, including the impact of federal and state laws and regulations relating to remediation of environmental contamination, see Item 8. Note 13. Commitments and Contingent Liabilities.
For further discussion of environmental laws and regulations impacting our business, results of operations and financial condition, including the impact of federal and state laws and regulations relating to remediation of environmental contamination, see Item 8. Note 12. Commitments and Contingent Liabilities.
These and other physical changes could result in changes in customer demand, increased costs associated with repairing and maintaining generation facilities and T&D systems, resulting in increased maintenance and capital costs (and potential increased financing needs), increased regulatory oversight, and lower customer satisfaction.
These and other physical changes could result in changes in customer demand, increased costs associated with repairing and maintaining generation facilities and T&D systems, resulting in increased maintenance and capital costs (and potentially increased financing needs), increased regulatory oversight, and lower customer satisfaction.
The performance of the financial markets will affect the value of the assets that are held in trust to satisfy our future obligations under our defined benefit plans and to decommission our nuclear generating plants.
The performance of the financial markets will affect the value of the assets that are held in trust to satisfy our future obligations under our defined benefit plan and to decommission our nuclear generating plants.
Failure to manage adequately our investments in our defined benefit plan trusts and NDT Fund could result in the need for us to make significant cash contributions in the future to maintain our funding at sufficient levels, which would negatively impact our results of operations, cash flows and financial position.
Failure to adequately manage our investments in our defined benefit plan trusts 24 Table of Contents and NDT Fund could result in the need for us to make significant cash contributions in the future to maintain our funding at sufficient levels, which would negatively impact our results of operations, cash flows and financial position.
In December 2022, all of PSEG’s operating companies with MBR authority filed at FERC for acceptance of the companies’ updated triennial market power analysis. This filing remains pending at FERC.
In December 2025, all of PSEG’s operating companies with MBR authority filed at FERC for acceptance of the companies’ updated triennial market power analysis. This filing remains pending at FERC.
Because of the inherent vulnerability of infrastructure and technology and operational systems to disability or failure due to hacking, viruses, malicious or destructive code, phishing and other social engineering attacks, denial of service attacks, ransomware, acts of war or terrorism, or other cybersecurity incidents, we face increased risk of cyberattack.
Because of the inherent vulnerability of infrastructure and technology and operational systems to disability or failure due to hacking, viruses, malicious or destructive code, phishing and other social engineering attacks, denial of service attacks, ransomware, 22 Table of Contents acts of war or terrorism, or other cybersecurity incidents, we face increased risk of cyberattack.
Cybersecurity risks to our operations include: • disruption of the operation of our assets, the fuel supply chain, the power grid and gas T&D, • theft of confidential company, employee, shareholder, vendor or customer information, and critical energy infrastructure information, which may cause us to be in breach of certain covenants and contractual, legal or regulatory obligations and pose risk to our system and our customers, • general business system and process interruption or compromise, including preventing us from servicing our customers, working remotely, collecting revenues or the ability to record, process and/or report financial information correctly, and • breaches of vendors’ infrastructures where our confidential information is stored.
Cybersecurity risks to our operations include: • disruption of the operation of our assets, the fuel supply chain, the power grid and gas T&D, • theft of confidential company, employee, shareholder, vendor or customer information, and critical energy infrastructure information, which may cause us to be in breach of certain covenants and contractual, legal or regulatory obligations and pose risk to our system and our customers, • general business system and process interruption or compromise, including preventing us from servicing our customers, working remotely, collecting revenues or recording, processing and/or reporting financial information correctly, and • breaches of vendors’ infrastructures where our confidential information is stored.
PSEG’s and PSE&G’s debt instruments contain events of default customary for financings of their type, including cross accelerations to other debt of that entity.
PSEG’s, PSE&G’s and PSEG Power’s debt instruments contain events of default customary for financings of their type, including cross accelerations to other debt of that entity.
Higher costs from suppliers of equipment and materials, fuel and services and labor and health care costs to attract and retain our workforce, as well as policy matters such as tax rates, tariffs and other policies impacting costs, could lead to increased costs, which could reduce our earnings.
Higher costs from suppliers of equipment and materials, fuel and services and labor and health care costs to attract and retain our workforce, as well as policy matters such as tax rates, tariffs and other policies impacting costs, could lead to increased costs.
MD&A—Executive Overview of 2024 and Future Outlook, PSEG Power’s Salem 1, Salem 2 and Hope Creek nuclear plants have been awarded ZECs by the BPU through May 2025. 30 Table of Contents In August 2022, the IRA was signed into law expanding incentives promoting carbon-free generation.
MD&A—Executive Overview of 2025 and Future Outlook, PSEG Power’s Salem 1, Salem 2 and Hope Creek nuclear plants were awarded ZECs by the BPU through May 2025. 30 Table of Contents In August 2022, the IRA was signed into law expanding incentives promoting carbon-free generation.
In addition, as capacity performance resources in PJM, PSEG’s nuclear units have been and will in the future be required to pay penalties if a forced outage at a plant occurs during a declared emergency event within PJM and that plant’s expected performance exceeds its actual performance during such event.
In addition, as capacity performance resources in PJM, PSEG’s nuclear units have been and will in the future be required to pay penalties if a forced outage at a plant occurs during a declared emergency event within PJM as defined by PJM's rules and that plant’s expected performance exceeds its actual performance during such event.
In addition, the operation of our business is dependent upon the IT systems of Nth parties (i.e., our third parties and other business relationships, including fourth parties, etc.), including our 22 Table of Contents vendors, regulators, RTOs and ISOs, among others.
In addition, the operation of our business is dependent upon the IT systems of Nth parties (i.e., our third parties and other business relationships, including fourth parties, etc.), including our vendors, regulators, RTOs and ISOs, among others.
Long-lived assets represent approximately 73% and 80% of the total assets of PSEG and PSE&G, respectively, as of December 31, 2024.
Long-lived assets represent approximately 73% and 80% of the total assets of PSEG and PSE&G, respectively, as of December 31, 2025.
Moreover, new or updated security laws or regulations , including laws and regulations that respond to evolving application of AI, or unforeseen threat sources could require changes in current measures taken by us and our business operations, which could result in increased costs and adversely affect our financial statements.
Moreover, new or updated security laws or regulations , including laws and regulations that respond to evolving application of AI, or unforeseen threat sources could require changes in current measures taken by us and our business operations, which could result in increased costs.
Additional funding requirements for our defined benefit plans could be 24 Table of Contents caused by changes in required or voluntary contributions, an increase in the number of employees becoming eligible to retire and changes in life expectancy assumptions. A decline in the market value of our NDT Fund could increase PSEG Power’s funding requirements to decommission its nuclear plants.
Additional funding requirements for our defined benefit plan could be caused by changes in required or voluntary contributions, an increase in the number of employees becoming eligible to retire and changes in life expectancy assumptions. A decline in the market value of our NDT Fund could increase PSEG Power’s funding requirements to decommission its nuclear plants.
A finding by the BPU of non-compliance with these requirements could potentially impact our business, results of operations and cash flows. For information regarding PSE&G’s most recent affiliate and management audit, see Item 8. Note 13. Commitments and Contingent Liabilities.
A finding by the BPU of 28 Table of Contents non-compliance with these requirements could potentially impact our business, results of operations and cash flows. For information regarding PSE&G’s most recent affiliate and management audit, see Item 8. Note 12. Commitments and Contingent Liabilities.
We are subject to numerous federal, state and local environmental laws and regulations that may significantly limit or affect our businesses, adversely impact our business plans or expose us to significant environmental fines and liabilities.
We are subject to numerous federal, state and local environmental laws and regulations that may significantly limit or affect our businesses, result in significant litigation, adversely impact our business plans and/or expose us to significant environmental fines, costs and other liabilities.
Lower natural gas prices often result in lower electricity prices, which could reduce our margins where our nuclear generation costs may not have declined similarly. 25 Table of Contents Changes in prevailing market prices below the PTC threshold could have a material adverse effect on our financial condition and results of operations.
Lower natural gas prices often result in lower electricity prices, which could reduce our margins where our nuclear generation costs may not have declined similarly. Changes in prevailing market prices could have a material adverse effect on our financial condition and results of operations.
Cybersecurity attacks, data breaches, or intrusions or other disruptions to our IT, operational or other systems could adversely impact our businesses. Cybersecurity threats to the energy market infrastructure are increasing in sophistication, magnitude and frequency, particularly with the regularity of virtual operations.
Cybersecurity attacks, data breaches, or intrusions or other disruptions to our IT, operational or other systems could adversely impact our businesses. Cybersecurity threats to the energy market infrastructure are increasing in sophistication, magnitude and frequency.
We are subject to regulation by federal authorities. Such regulation affects almost every aspect of our businesses, including management and operations; the terms and rates of transmission services; investment strategies; the financing of our operations and the payment of dividends.
We are subject to regulation by federal authorities. Such regulation affects almost every aspect of our businesses, including management and operations; the terms and rates of transmission services; the rules governing the payments we receive from PJM markets; investment strategies; the financing of our operations and the payment of dividends.
Further, our business is subject to policy, regulatory, technology and economic uncertainties and contingencies, including regulatory approvals required for our various investments, many of which are beyond our control and may affect planned 20 Table of Contents investments and our ability to meet our targets of net zero GHG emissions by 2030 for Scopes 1 and 2 emissions, or other GHG emissions reduction or climate-related goals that we may set from time to time, in a cost-effective manner or at all.
Further, our business is subject to policy, regulatory, technology and economic uncertainties and contingencies, including regulatory approvals required for our various investments, many of which are beyond our control and may affect planned investments and our ability to meet GHG emissions reduction or climate-related goals that we may set from time to time, in a cost-effective manner or at all.
Further, certain negative public and political views by certain stakeholders on natural gas and other types of energy infrastructure could result in diminishing support for those investments.
Further, certain negative public and political views by certain stakeholders on energy infrastructure could result in diminishing support for those investments.
We are exposed to the risk of asset and equipment failures, gas explosions, accidents, natural disasters, severe weather events, acts of war or terrorism or other acts of violence, including active shooter situations, sabotage, physical attacks or security breaches, cyberattacks or other incidents, which could result in damage to or destruction of our substations or other facilities or infrastructure, or damage to persons or property and to electric and gas supply interruptions.
We are exposed to the risk of asset and equipment failures, gas explosions or leaks, accidents, pandemics, natural disasters, severe weather events, acts of war or terrorism or other acts of violence, including active shooter situations, sabotage, physical attacks or security breaches, cyberattacks or other incidents, which could result in damage to or destruction of our substations or other facilities or infrastructure, or damage to persons or property, fire, loss of life, outages, mechanical problems, environmental pollution, electric and gas supply interruptions or other adverse impacts to our business .
Certain events such as an aging workforce looking to retire without an opportunity to transfer knowledge to a successor, inadequate workforce plans and replacements, lack of skill set to meet current and evolving business needs, a culture that does not foster inclusion leading to turnover, acts of violence in the workplace, inadequate training and a workforce that is not engaged may lead to operating challenges, safety concerns and increased costs.
Certain events such as an aging workforce looking to retire without an opportunity to transfer knowledge to a successor, inadequate workforce plans and replacements, lack of skill set to meet current and evolving business needs, a culture that does not foster inclusion leading to turnover, a failure to successfully negotiate new collective bargaining agreements with our labor unions on mutually acceptable terms or at all, acts of violence in the workplace, inadequate training and a workforce that is not engaged may lead to operating challenges, safety concerns and increased costs.
Significant reductions in our expected revenues or cash flows for an extended period of time resulting from such events could result in future asset impairment charges, which could have a material adverse impact on our financial condition and results of operations. Disruptions or cost increases in our supply chain, including labor shortages, could materially impact our business.
Significant reductions in our expected revenues or cash flows for an extended period of time resulting from such 21 Table of Contents events could result in future asset impairment charges, which could have a material adverse impact on our financial condition and results of operations.
Legal requirements and regulatory scrutiny for the collection, storage, handling, use, disclosure, transfer, and security of personal data continue to evolve and expand, which may present material obligations and risks to our business, including expanded compliance burdens, restrictions on transfer of personal data, costs, and enforcement risks.
Legal requirements and regulatory scrutiny for the collection, storage, handling, use, disclosure, transfer, and security of personal data continue to evolve and expand, which may present material obligations and risks to our business, including expanded compliance burdens, restrictions on transfer of personal data, costs, and enforcement risks. 23 Table of Contents Failure to attract and retain a qualified workforce could have an adverse effect on our business .
Defense costs associated with such litigation can also be significant and could affect results of operations, financial condition or cash flows if such costs are not recovered through regulated rates .
An adverse outcome could require substantial capital expenditures and possibly require payment of substantial penalties or damages. Defense costs associated with such litigation can also be significant and could affect results of operations, financial condition or cash flows if such costs are not recovered through regulated rates .
Sustained distribution grid modernization will also be required to accommodate increased EE, EV infrastructure, increased penetration of distributed energy resources on the electric system, such as on-site solar generation and also potential deployment of 23 Table of Contents energy storage, fuel cells, and DR technologies.
Substantial investments in generation, transmission and distribution will be required to meet current projections of increasing customer demand. Sustained distribution grid modernization will also be required to accommodate increased EE, EV infrastructure, increased penetration of distributed energy resources on the electric system, such as on-site solar generation and also potential deployment of energy storage, fuel cells, and distributed resources technologies.
Such developments could (i) affect the price of energy, (ii) reduce energy deliveries as customer-owned generation becomes more cost-effective, (iii) require further improvements to our distribution systems to address changing load demands, and (iv) make portions of our transmission and/or distribution facilities obsolete prior to the end of their useful lives.
Advances in distributed generation technologies, such as fuel cells, micro turbines, micro grids, windmills and net-metered solar installations, coupled with subsidies, could (i) affect the price of energy, (ii) reduce energy deliveries as customer-owned generation becomes more cost-effective, (iii) require further improvements to our distribution systems to address changing load demands, and (iv) make portions of our transmission and/or distribution facilities obsolete prior to the end of their useful lives.
PSEG’s, PSE&G’s and PSEG Power’s bank credit agreements, contain certain limitations on the incurrence of liens and PSEG Power’s bank credit agreements also contain limitations on the incurrence of certain subsidiary debt. PSEG Power's term loan agreements contain a change-of-control clause, which includes under certain circumstances, PSEG Power ceasing to be a wholly owned subsidiary of PSEG.
PSEG Power’s bank credit agreements contain limitations on sales of assets and PSEG Power’s debt instruments contain limitations on certain sale and leaseback transactions. PSEG Power's term loan agreements contain a change-of-control clause, which includes under certain circumstances, PSEG Power ceasing to be a wholly owned subsidiary of PSEG.
Transmission projects are subject to the rules governing PJM's FERC-approved transmission expansion planning process as well as other FERC rules, while distribution and clean energy projects are subject to approval by the BPU. The costs of PSE&G’s transmission projects are subject to prudency challenge at FERC and PSE&G’s rates themselves may also be challenged at FERC.
Transmission projects are subject to the rules governing PJM's FERC-approved transmission expansion planning process which may be challenged in the future as well as other FERC rules, while distribution and clean energy projects are subject to approval by the BPU.
Severe weather or acts of nature, including hurricanes, winter storms, earthquakes, floods, wildfires and other natural disasters can stress systems, disrupt operation of our facilities and cause service outages, and property damage that require incurring additional expenses.
These factors could impact the need to invest in our electric and gas T&D systems and, therefore, our growth rate. Severe weather or acts of nature, including hurricanes, winter storms, earthquakes, floods, wildfires and other natural disasters can stress systems, disrupt operation of our facilities and cause service outages, and property damage that require incurring additional expenses.
We are exposed to risks related to the continued successful operation of our nuclear facilities and issues that may adversely affect the nuclear generation industry.
Our ownership and operation of nuclear power plants involve regulatory risks as well as financial, environmental and health and safety risks. We are exposed to risks related to the continued successful operation of our nuclear facilities and issues that may adversely affect the nuclear generation industry.
The supply chain of goods and services could be impacted by several factors, including sanctions, tariffs, manufacturing labor shortages, domestic and international shipping constraints, increases in demand, and shortages of raw materials and 21 Table of Contents specialty components.
Disruptions or cost increases in our supply chain, including labor shortages, could materially impact our business. The supply chain of goods and services could be impacted by several factors, including sanctions, tariffs, manufacturing labor shortages, domestic and international shipping constraints, increases in demand, physical alterations in technologies that create cyber risks, and shortages of raw materials and specialty components.
It will require multiple years and comprehensive environmental sampling to understand the extent of and to carry out the required remediation. At this stage of the remediation process, the full remediation costs are not estimable, but given the number and operating history of the facilities in the portfolio, the full remediation costs will likely be material in the aggregate.
At this stage of the remediation process, the full remediation costs are not estimable, but given the number and operating history of the facilities in the 32 Table of Contents portfolio, the full remediation costs will likely be material in the aggregate.
We may also be unable to successfully recover certain 32 Table of Contents of these cost increases through our existing regulatory rate structures, in the case of PSE&G, or our contracts with our customers, in the case of PSEG Power.
We may also be unable to successfully recover certain of these cost increases through our existing regulatory rate structures, in the case of PSE&G, or our contracts with our customers, in the case of PSEG Power. PSE&G recovers certain remediation and legal costs associated with its manufactured gas plant sites through Remediation Adjustment Charge (RAC) filings with the BPU.
Any of these risks could cause the amounts of our investments and/or our return on these investments to be lower than expected, which could adversely impact our financial condition and results of operations through lower investment opportunities and/or lower returns. 19 Table of Contents We are subject to physical, financial and transition risks related to climate change, including potentially increased legislative and regulatory burdens and changing customer preferences, and we may be subject to lawsuits, all of which could impact our businesses and results of operations.
We are subject to physical, financial and transition risks related to climate change, including potentially increased legislative and regulatory burdens and changing customer preferences, and we may be subject to lawsuits, all of which could impact our businesses and results of operations.
Therefore, a default by a third party could increase our costs, which could negatively impact our results of operations and cash flows. 27 Table of Contents There may be periods when PSEG Power generation may not operate and/or may not be able to meet its commitments under forward sale obligations and PJM rules at a reasonable cost or at all.
Any failure of these counterparties to perform could have a material adverse impact on our results of operations, cash flows and financial position. There may be periods when PSEG Power generation may not operate and/or may not be able to meet its commitments under forward sale obligations and PJM rules at a reasonable cost or at all.
We are subject to third-party credit risk relating to our sale of nuclear generation output. We sell generation output through the execution of bilateral contracts. These contracts are subject to credit risk, which relates to the ability of our counterparties to meet their contractual obligations to us.
Therefore, a default by a third party could increase our costs, which could negatively impact our results of operations and cash flows. We hedge generation output through the execution of bilateral contracts. These contracts are subject to credit risk, which relates to the ability of our counterparties to meet their contractual obligations to us.
These clause mechanisms require periodic financial reviews to update rates charged to customers which are independent of base rate proceedings and are subject to prudency reviews by the BPU.
In addition, our utility has received approval for several clause recovery mechanisms, some of which provide for recovery of costs and earn returns on authorized investments. These clause mechanisms require periodic financial reviews to update rates charged to customers which are independent of base rate proceedings and are subject to prudency reviews by the BPU.
FERC has also proposed elimination of certain transmission rate incentives, including the incentive that PSE&G receives for being a transmission owner member of PJM and accepting the related risk of RTO membership. We cannot be certain that any proposed project or program will be approved as requested or at all.
The costs of PSE&G’s transmission projects are subject to prudency challenge at FERC and PSE&G’s rates themselves may also be challenged at FERC. FERC has also proposed elimination of certain transmission rate incentives, including the incentive that PSE&G receives for being a transmission owner member of PJM and accepting the related risk of RTO membership.
PSEG LI has an OSA with LIPA to operate LIPA’s electric T&D system in Long Island. The OSA continues through 2025 and LIPA is currently conducting a process for provision of these services after 2025. It is uncertain whether these contracts will be extended or renewed, which may negatively affect our financial condition and operating results.
PSEG LI has an OSA with LIPA to operate LIPA’s electric T&D system in Long Island which was recently extended through 2030. Any discontinuation of these contracts may negatively affect our financial condition and operating results.
Third-Party Operation of Peach Bottom Plants —While we have a 50% ownership interest in the Peach Bottom nuclear generation plants, these plants are operated by a third party and, therefore, we have limited control over the operational and other risks associated with these plants.
While we have a 50% ownership interest in the Peach Bottom nuclear generation plants, these plants are operated by a third party and, therefore, we have limited control over the risks associated with these plants. REGULATORY, LEGISLATIVE AND LEGAL RISKS PSE&G’s revenues, earnings and results of operations are dependent upon state laws and regulations that affect distribution and related activities.
Our generation business currently involves the establishment of forward sale positions in the wholesale energy markets on long-term and short-term bases. If the realized value of our generation falls outside of the PTC thresholds, to the extent that we have contracted obligations in excess of energy we have produced, an increase in market prices could reduce profitability.
If the realized value of our generation falls outside of the level at which we would receive PTCs, to the extent that we have contracted obligations in excess of energy we have produced, an increase in market prices could reduce profitability.
In January 2025, PJM adjusted its load forecast in the PSEG zone and across PJM to reflect increased expectations of large customer growth.
PJM’s regional load forecast has increased significantly over the past few years, reflecting increased expectations of large customer growth and in January 2026, PJM provided an annual update of its load forecast in the PSEG zone and across PJM to reflect continued expectations of large customer growth.
The amount of such payments could be substantial and could have a material adverse effect on our financial condition, results of operations and cash flows. In addition, changing market design rules, including capacity performance rules and timing of capacity market auctions, and/or failure to follow existing rules – by PJM or market participants – creates regulatory uncertainty and reliability risk.
In addition, changing market design rules, including capacity performance rules and the design and timing of capacity market auctions, and/or failure to follow existing rules by PJM or market participants, as well as any future supply/demand imbalance in PJM, creates regulatory uncertainty and reliability risk.
Failure to comply with these regulations could have a material adverse impact on PSE&G’s ability to operate its business and could result in fines, penalties or sanctions. The retail rates for electric and gas distribution services are established in a distribution base rate proceeding and remain in effect until a new distribution base rate proceeding is filed and concluded.
PSE&G is subject to regulation by the BPU. Such regulation affects almost every aspect of its businesses, including its retail rates. Failure to comply with these regulations could have a material adverse impact on PSE&G’s ability to operate its business and could result in fines, penalties or sanctions.
In addition, if legislative and regulatory structures were to evolve in such a way that PSE&G’s exclusive rights to serve its regulated customers were eroded, its future earnings could be negatively impacted. 28 Table of Contents PSE&G also is pursuing a number of opportunities to expand its products and services to customers.
In addition, if legislative and regulatory structures were to evolve in such a way that PSE&G’s exclusive rights to serve its regulated customers were eroded, its future earnings could be negatively impacted. The BPU also conducts periodic combined management/competitive service audits of New Jersey utilities related to affiliate standard requirements, competitive services, cross-subsidization, cost allocation and other issues.
Any failure of these counterparties to perform could have a material adverse impact on our results of operations, cash flows and financial position. In the spot markets, we are exposed to the risks of the default sharing mechanisms that exist in those markets, some of which attempt to spread the risk across all participants.
We are subject to third-party credit risk relating to our sale of nuclear generation output. In the spot markets, we are exposed to the risks of the default sharing mechanisms that exist in those markets, some of which attempt to spread the risk across all participants.
For a discussion of recent changes in energy regulatory policies that may affect our business and results of operations, see Item 1. Business—Regulatory Issues—Federal Regulation. Further, some of the market-based mechanisms in which we participate are at times the subject of review or discussion by some of the participants in the New Jersey and federal arenas.
These changes have led to capacity market auction delays and rules changes that have created regulatory and business uncertainty. For a discussion of recent changes in energy regulatory policies that may affect our business and results of operations, see Item 1. Business—Regulatory Issues—Federal Regulation.
Climate change may increasingly drive change to existing or additional legislation and regulation that may impact our business and shape our customers’ energy preference and sustainability goals.
Climate change may drive change to existing or additional legislation and regulation that may impact our business and shape our customers’ energy preference and sustainability goals, including impacts of potential changes in use of natural gas and electricity due to electrification over the long-term and the impact on need for additional generation to meet those electric needs.
PJM’s capacity market design rules continue to evolve and change, including in response to projections of higher demand, efforts to integrate public policy initiatives into the wholesale markets, lack of sufficient generation capacity and extreme weather events. These changes have led to capacity market auction delays.
The energy industry continues to be regulated and the rules to which our businesses are subject are always at risk of being changed. PJM’s capacity market design rules continue to evolve and change, including in response to projections of higher demand, lack of sufficient generation capacity and extreme weather events.
In addition, PSEG Power retained ownership of certain liabilities excluded from the sale of its fossil generation portfolio. These primarily relate to obligations under environmental regulations, including remediation obligations under the New Jersey Industrial Site Recovery Act and the Connecticut Transfer Act.
These primarily relate to obligations under environmental regulations, including remediation obligations under the New Jersey Industrial Site Recovery Act and the Connecticut Transfer Act. It will require multiple years and comprehensive environmental sampling to understand the extent of and to carry out the required remediation.
These technologies could also result in further declines in commodity prices or demand for delivered energy. Further, a material shift away from natural gas due to customer preference or regulatory developments and initiatives could reduce the number of gas customers.
These technologies could also result in further declines in commodity prices or demand for delivered energy.
Failure to comply with these regulations could have a material adverse impact on our ability to operate our business and could result in fines, penalties or sanctions. Recovery of wholesale transmission rates —PSE&G’s wholesale transmission rates are regulated by FERC and our project costs are recovered through a FERC-approved formula rate.
Failure to comply with these regulations could have a material adverse impact on our ability to operate our business and could result in fines, penalties or sanctions. Hazardous Substance Liability— PSEG’s operations involve substances and byproducts classified by environmental regulations as hazardous. These regulations impose handling, storage and disposal requirements for hazardous materials.
PSE&G recovers certain remediation and legal costs associated with its manufactured gas plant sites through Remediation Adjustment Charge (RAC) filings with the BPU. Continued future recoveries through the RAC are not guaranteed. Any failure to make future recoveries could materially impact our financial condition.
Continued future recoveries through the RAC are not guaranteed. Any failure to make future recoveries could materially impact our financial condition. In addition, PSEG Power retained ownership of certain liabilities excluded from the sale of its fossil generation portfolio.
Removed
While the CIP protects PSE&G’s margin variances against changes in customer usage of gas and electricity, customer demand for natural gas could decrease as a result of changing customer preferences favoring electrification and advanced technologies that offer energy efficient options.
Added
Any of these risks could cause the amounts of our investments and/or our return on these investments to be lower than expected, which could adversely impact our financial condition and results of operations through lower investment opportunities and/or lower returns. 19 Table of Contents Significant resource adequacy challenges present affordability and reliability concerns that could cause policymakers to implement responsive measures that could have a material, adverse impact on our business, strategy, growth rates, cash flows, results of operation, and financial condition and increase regulatory uncertainty for utility investment initiatives and programs.
Removed
Electric demand could also be impacted by electrification, including greater adoption of EVs, installation of distributed energy resources, such as behind the meter solar, installation of more energy efficient equipment, flexible load and/or energy storage, and other advances in technology.
Added
PJM continues to face significant resource adequacy challenges, driven by a lack of sufficient supply to meet electric demand, which has increased significantly over the past several years and is expected to continue to increase going forward. Increasing demand is caused by data centers, EV adoption, electrification and other factors.
Removed
Further, climate change may adversely impact the economy and reduced economic and consumer activity in our service areas could lower demand for electricity and gas we deliver. Any one or all of these factors could impact the need to invest in our electric and gas T&D systems and, therefore, our company growth rate.
Added
Insufficient supply to meet forecasted demand has caused increases in energy and capacity prices which, in turn, have caused the customer rates by which we recover electric supply costs to materially increase.
Removed
Increased regulation of GHG emissions could impose significant additional costs on our electric and natural gas operations, our suppliers and ultimately, our customers.
Added
This has resulted in continuing affordability concerns that have caused regulators and other policymakers to consider ways to reduce utility rates, including proposing to mitigate electric rate increases, and create increased regulatory uncertainty for utility investment initiatives and programs.
Removed
Developing and implementing plans for compliance with GHG emissions reduction, clean/renewable energy requirements, or for achieving voluntary climate commitments can lead to additional capital and Operation and Maintenance (O&M) expenditures and could significantly affect the economic position of existing operations and proposed projects.

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Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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Biggest changeThese efforts better enable all employees to identify potential cybersecurity risks and escalate them appropriately. • Incident Response Plans —We maintain and periodically update a cyber incident response plan that addresses the life cycle of a cybersecurity incident from a technical perspective (i.e., detection, response, and recovery), and a data breach response plan (with a focus on external communication/disclosure and legal compliance); and conduct regular tabletop exercises to test plan effectiveness (both internally and through external exercises). • Mobile Security —We maintain controls to prevent loss of data through mobile device channels. • Physical Security —We also maintain physical security measures to protect our OT systems, consistent with a defense in-depth and risk-tiered approach.
Biggest changeThese efforts better enable those with network access to identify potential cybersecurity risks and escalate them appropriately. • Incident Response Plans— We maintain and periodically update a cyber incident response plan that covers technical (i.e., detection, response, and recovery) and collaborative (i.e. external communication/disclosure and legal compliance) aspects of cyber incident and breach response; and conduct tabletop exercises to test plan effectiveness (both internally and through external exercises). • Mobile Security —We maintain controls to prevent loss of data through mobile devices. • Artificial Intelligence Security— We maintain AI governance, including policies and a council, incorporating AI into our Nth Party Risk Assessment process, and implementing technical controls that enable people to use AI to complete tasks more efficiently and our cyber team to better combat more sophisticated threats that make use of AI. • Physical Security —We maintain physical security measures to protect our OT systems, consistent with a defense in-depth and risk-tiered approach.
Audit Committee members have a courtesy invitation to all IOC meetings, have full access to IOC meeting materials, and receive the summary of IOC meetings from the IOC Chair as noted above. • Governance, Nominating and Sustainability Committee and Audit Committee —These committees are briefed at least annually on enterprise-level risks and emerging risks, including those related to cybersecurity, and receive regular updates on PSEG RMC activities, including those related to cybersecurity. • Board of Directors, IOC, and Audit Committee —In providing oversight of risks from cybersecurity threats, the Board, IOC, and Audit Committee are informed of cybersecurity risks through frequent reports on such topics as personnel and resources to monitor and address cybersecurity threats, technological advances in cybersecurity protection, rapidly evolving cybersecurity threats that may affect us and our industry, cybersecurity incident response and applicable cybersecurity laws, regulations and standards, as well as collaboration mechanisms with intelligence and enforcement agencies and industry groups to assure timely threat awareness and response coordination .
Audit Committee members have an invitation to all IOC meetings, have full access to IOC meeting materials, and receive the summary of IOC meetings from the IOC Chair as noted above. • Governance, Nominating and Sustainability Committee and Audit Committee —These committees are briefed at least annually on enterprise-level risks and emerging risks, including those related to cybersecurity, and receive regular updates on PSEG RMC activities, including those related to cybersecurity. • Board of Directors, IOC, and Audit Committee —In providing oversight of risks from cybersecurity threats, the Board, IOC, and Audit Committee are informed of cybersecurity risks through frequent reports on such topics as personnel and resources to monitor and address cybersecurity threats, technological advances in cybersecurity protection, rapidly evolving cybersecurity threats that may affect us and our industry, cybersecurity incident response and applicable cybersecurity laws, regulations and standards, as well as collaboration mechanisms with intelligence and enforcement agencies and industry groups to assure timely threat awareness and response coordination .
In addition, risks associated with cybersecurity incidents, or potential incidents, are escalated by senior management promptly to the Board outside of regularly scheduled meetings, if appropriate. 35 Table of Contents – Management’s Role in Assessing and Managing Material Cybersecurity Risks: The assessment and management of material risks from cyber threats is managed by the CIDO, CISO and Cybersecurity Council, as further described below. • CIDO —The CIDO has had the overall responsibility for PSEG’s cybersecurity since September 2022, including the assessment and management of material risks to PSEG from cybersecurity threats .
In addition, risks associated with cybersecurity incidents, or potential incidents, are escalated by senior management promptly to the Board outside of regularly scheduled meetings, if appropriate. – Management’s Role in Assessing and Managing Material Cybersecurity Risks: The assessment and management of material risks from cyber threats is managed by the CIDO, CISO and Cybersecurity Council, as further described below. • CIDO —The CIDO has had the overall responsibility for PSEG’s cybersecurity since September 2022, including the assessment and management of material risks to PSEG from cybersecurity threats .
The ERM team, led by the SVP, Audit, Enterprise, Risk and Compliance (AERC) considers cybersecurity risks alongside other PSEG risks, and facilitates discussion 34 Table of Contents with PSEG subject matter experts to identify cybersecurity risks, evaluate their potential severity and likelihood, identify mitigations, including those identified above, and assess the impact of those mitigations on residual risk .
The ERM team, led by the SVP, Audit, Enterprise, Risk and Compliance (AERC) considers cybersecurity risks alongside other PSEG risks, and facilitates discussion with PSEG subject matter experts to identify cybersecurity risks, evaluate their potential severity and likelihood, identify mitigations, including those identified above, and assess the impact of those mitigations on residual risk.
The IOC is informed about cybersecurity risks by the CIDO and/or the CISO, during the IOC’s four regularly scheduled meetings per year, which each include cybersecurity as a standing agenda item.
The IOC is informed of cybersecurity risks by the CIDO and/or the CISO, during the IOC’s four regularly scheduled meetings per year, which each include cybersecurity as a standing agenda item.
The CISO served in this role since July 2024. Our CISO has over 20 years of experience in cybersecurity and served as a VP, CISO in the manufacturing/chemicals sector prior to joining PSEG. Our CISO also started her career at the Department of Defense and led cyber teams in the financial and retail sectors.
The CISO served in this role since July 2024. Our CISO has over 24 years of experience in cybersecurity and served as a VP, CISO in the manufacturing/chemicals sector prior to joining PSEG. Our CISO started her career at the Department of Defense and led cyber teams in the financial and retail sectors.
To ensure the full Board is kept informed about the cybersecurity risks discussed at the IOC meetings, the cybersecurity materials provided to the IOC are available for full viewing by all members of the Board, members of the Board who are not IOC members have a courtesy invitation to each IOC meeting, and the Chair of the IOC provides a summary of IOC meetings to the full Board, typically the day after the meeting takes place. • Audit Committee —The Audit Committee has the charter responsibility of overseeing cybersecurity risks related to financial reporting and internal controls.
To ensure the full Board is kept informed about the cybersecurity risks discussed at the IOC meetings, the cybersecurity materials provided to the IOC are available for full viewing by all members of the Board, members of the Board who are not IOC members have a courtesy invitation to each IOC meeting, and the Chair of the IOC provides a summary of IOC meetings to the full Board, typically the day after the meeting takes place. • Audit Committee —The Audit Committee is responsible for overseeing cybersecurity risks related to financial reporting and internal controls.
Physical security measures may include access control systems, video surveillance, around-the-clock command center monitoring, and physical barriers (such as fencing, walls, and bollards). Additional features of PSEG’s physical security program include threat intelligence, insider threat mitigation, background checks, a threat level advisory system, a business interruption management model, and active coordination with federal, state, and local law enforcement officials.
Physical security measures may include access control systems, video surveillance, around-the-clock command center monitoring, and physical barriers (e.g. fencing, walls, and bollards). Additional features of PSEG’s physical security program include threat intelligence, insider threat mitigation, background checks, a threat level advisory system, a business interruption management model, and active coordination with federal, state, and local law enforcement officials.
In addition, the Cybersecurity Council, comprised of senior management, is kept apprised of the state of PSEG’s cybersecurity program, including any emerging risks, and provides guidance on the strategic directions of the program. • Engagement of Nth Parties —We engage Nth parties (third parties and other business relationships, including fourth parties, etc.), such as cybersecurity service providers, risk management firms, and external legal counsel, to assess material risks from cybersecurity threats and assess our internal incident response preparedness and cyber posture, support incident response, conduct tabletop exercises, and comply with applicable laws and regulations.
In addition, the Cybersecurity Council, comprised of senior management, is kept apprised of PSEG’s cybersecurity program, including any emerging risks, and provides guidance on the strategic direction of the program. • Engagement of Nth Parties— We engage Nth parties (third parties and other business relationships, including fourth parties, etc.), such as cybersecurity service providers, risk management firms, and external legal counsel, to assess 33 Table of Contents material risks from cybersecurity threats, assess our internal incident response preparedness and cyber posture, support incident response, conduct tabletop exercises, and comply with applicable laws and regulations.
In providing oversight of risks from cybersecurity threats, the Board is informed of cybersecurity incidents as appropriate, by way of updates from Senior Management, pursuant to PSEG’s Cybersecurity Event Escalation and Incident Response Practice, as administered by the CISO. • IOC —At the PSEG Board level, the IOC holds the primary responsibility, as enumerated in its charter, of overseeing PSEG’s cybersecurity program and assessing overall compliance through active, independent and critical oversight.
In providing oversight of risks from cybersecurity threats, the Board is informed of cybersecurity incidents as appropriate, by way of updates from Senior Management, pursuant to PSEG’s Cybersecurity Incident Response Plan, as administered by the CISO. • IOC —At the PSEG Board level, the IOC holds the primary responsibility, as enumerated in its charter, for overseeing PSEG’s cybersecurity program and assessing overall compliance through active, independent and critical oversight.
The Cybersecurity Council receives presentations from the CISO, members of the Cybersecurity team, other IT domain experts, cybersecurity managing counsel and external cybersecurity experts, and participates in tabletop exercises led by external consultants.
The Cybersecurity Council receives presentations from the CISO, members of the Cybersecurity team, other IT domain experts, cybersecurity managing counsel and external cybersecurity experts, and participates in tabletop exercises.
In discharging its responsibilities related to cybersecurity threats, the RMC has received presentations from the CISO. To date, there has been no material impact or reasonably likely material impact on our business strategy, results of operations or financial condition from cybersecurity attacks or incidents, including as a result of prior cybersecurity incidents .
In discharging its responsibilities related to cybersecurity threats, the RMC has received presentations from the CISO. To date, there has been no material impact or reasonably likely material impact on our business strategy, results of operations or financial condition from cybersecurity attacks or incidents.
Governance – PSEG Board of Directors (Board) Oversight of Risks from Cybersecurity Threats: • PSEG Board —The PSEG Board has ultimate responsibility for the oversight of risk management at PSEG, overseeing PSEG’s risk management program and reviewing the most significant risks facing PSEG, including cybersecurity risks.
Governance – PSEG Board of Directors (Board) Oversight of Risks from Cybersecurity Threats: • PSEG Board —The PSEG Board has ultimate responsibility for the oversight of risk management at PSEG, overseeing PSEG’s risk management program and reviewing the most significant risks facing PSEG, including 34 Table of Contents cybersecurity ri sks.
Risk Management and Strategy Our processes for assessing, identifying, and managing material risks from cybersecurity threats include: • Ongoing Assessment —The Cybersecurity department, led by the VP, Chief Information Security Officer (CISO), and reporting to the SVP, Chief Information and Digital Officer (CIDO) is staffed with cyber professionals tasked with the day-to-day responsibility of assessing material risks from cybersecurity threats.
Risk Management and Strategy Our processes for assessing, identifying, and managing material risks from cybersecurity threats include: • Ongoing Assessment— Cybersecurity, led by the VP, Chief Information Security Officer (CISO), reporting to the SVP, Chief Information and Digital Officer (CIDO), is staffed with cyber professionals who assess material risks from cybersecurity threats.
ITEM 1C. CYB ERSECURITY To reduce the likelihood and severity of cybersecurity incidents, we established a comprehensive cybersecurity program designed to protect and preserve the confidentiality, integrity and availability of our technology systems and business operations more broadly. For a discussion of the risks associated with cybersecurity threats, see Item 1A. Risk Factors.
ITEM 1C. CYB ERSECURITY To reduce the likelihood and severity of cybersecurity incidents, we maintain a comprehensive cybersecurity program designed to protect and preserve the confidentiality, integrity, and availability of our technology systems and business operations. For a discussion of cybersecurity risks, see Item 1A. Risk Factors.
In addition to the CISO, the Cybersecurity Council members include the: (i) CIDO; (ii) EVP and General Counsel; (iii) EVP and CFO; (iv) President and COO of PSE&G; (v) President of PSEG Nuclear and Chief Nuclear Officer; (vi) SVP – Corporate Citizenship; (vii) SVP – Chief Human Resources and Diversity Officer; (viii) VP of Corporate Security and Properties; (ix) SVP – AERC; (x) Project Executive Advisor; and (xi) Vice President and Controller.
In addition to the CISO, the Cybersecurity Council members include the: (i) SVP, CIDO; (ii) EVP, General Counsel; (iii) EVP, CFO; (iv) President and COO of PSE&G; (v) President of PSEG Nuclear and Chief Nuclear Officer; (vi) SVP, Corporate Citizenship; (vii) SVP, Chief Administrative Officer and Chief Human Resources Officer; (viii) VP, Corporate Security and Properties; (ix) SVP, AERC; (x) President and COO of PSEG LI; (xi) SVP, Chief Commercial Officer and Strategic Partnerships; and (xii) Vice President, Controller.
Through this process, cybersecurity risk is mapped primarily to the Board’s Industrial Operations Committee (IOC), and also the Audit Committee.
Through this process, cybersecurity risks are mapped primarily to the Board’s Industrial Operations Committee (IOC), and also the Audit Committee.
The CIDO remains informed about the monitoring, prevention, detection, mitigation, and remediation of cybersecurity incidents through the CISO and other members of the cybersecurity team, as appropriate, who are tasked with these responsibilities on a day-to-day basis. • CISO — The CISO has day-to-day responsibility for PSEG’s cybersecurity, including the assessment and management of material risks to PSEG from cybersecurity threats, and leads the cybersecurity team.
As noted above, the CIDO regularly attends and provides updates with the CISO to the IOC. 35 Table of Contents The CIDO remains informed about the monitoring, prevention, detection, mitigation, and remediation of cybersecurity incidents through the CISO and other members of the cybersecurity team, who are tasked with these responsibilities on a day-to-day basis. • CISO — The CISO has day-to-day responsibility for PSEG’s cybersecurity, including the assessment and management of material risks to PSEG from cybersecurity threats, and leads the cybersecurity team.
The Audit Committee receives a cybersecurity update twice a year from the CISO, either with the full Board or the IOC in attendance.
The Audit Committee receives an annual cybersecurity update from the CISO, either with the full Board or the IOC in attendance.
PSEG’s Corporate Secretary and Managing Counsel – Cybersecurity serves as counsel to the Cybersecurity Council. In providing oversight of risks from cybersecurity threats, Senior Management is informed of cybersecurity risks through updates shared during Cybersecurity Council meetings and through notifications or updates by the CISO, pursuant to PSEG’s Cybersecurity Event Escalation and Incident Response Practice .
PSEG’s cybersecurity counsel is also a regular attendee at Cybersecurity Council meetings. In providing oversight of risks from cybersecurity threats, Senior Management is informed of cybersecurity risks through updates shared during Cybersecurity Council meetings and through notifications or updates by the CISO, pursuant to PSEG’s Cybersecurity Incident Response Plan .
This includes a risk-based vendor management program, which incorporates robust cybersecurity contractual provisions, vendor security assessments and, if appropriate, periodic audits. • Technical Safeguards —We manage controls to protect our network perimeter, internal IT and Operational Technology (OT) environments, such as internal and external firewalls, network intrusion detection and prevention, penetration testing, vulnerability assessments, threat intelligence, endpoint security and access controls. • Training and Awareness —We provide mandatory annual cybersecurity training for all personnel with network access, and additional education for personnel with access to industrial control systems and/or customer information systems; and conduct phishing exercises with progressive consequences for failures.
Regulatory agencies, including, but not limited to, the NRC, Transportation Security Administration (TSA), and NERC, inspect applicable components of our cybersecurity program. • Nth-Party Service Provider Management— We maintain processes to oversee and identify risks from cybersecurity threats associated with our use of Nth-party service providers , including a risk-based vendor management program, which incorporates cybersecurity contractual provisions, vendor security assessments and, if appropriate, periodic audits. • Technical Safeguards— We manage controls to protect our network perimeter, internal IT, and Operational Technology (OT) environments, including internal and external firewalls, network intrusion detection and prevention tools, penetration testing, vulnerability assessments, threat intelligence, endpoint security, and access controls. • Training and Awareness— We provide mandatory annual cybersecurity training to all personnel with network access, and additional education to personnel with access to industrial control systems and/or customer information systems.
Employees also receive periodic cybersecurity awareness messages and each year, in recognition of Cybersecurity Awareness Month, are invited to presentations throughout October from internal and external cyber experts covering diverse cyber topics.
We conduct phishing exercises with progressive consequences for failures. We also share periodic cybersecurity awareness messages and each year, in recognition of Cybersecurity Awareness Month, we host presentations from internal and external cyber experts on diverse cyber topics.
Removed
Regulatory agencies, including but not limited to the NRC and Transportation Security Administration (TSA), as well as NERC, inspect applicable components of our cybersecurity program. • Nth-Party Service Provider Management — We maintain processes to oversee and identify risks from cybersecurity threats associated with our use of Nth-party service providers .
Removed
As noted above, the CIDO provides cybersecurity updates to the Board or its Committees, regularly attends and provides updates with the CISO to the IOC, and has met with the IOC, without other members of management present, during the IOC executive sessions.

Item 2. Properties

Properties — owned and leased real estate

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Biggest changePSEG Power Generation Facilities As of December 31, 2024, PSEG Power’s share of installed nuclear generating capacity is shown in the following table: Name Location Total Capacity (MW) % Owned Owned Capacity (MW) Nuclear: Hope Creek NJ 1,172 100 % 1,172 Salem 1 & 2 NJ 2,285 57 % 1,311 Peach Bottom 2 & 3 (A) PA 2,549 50 % 1,275 Total Nuclear 6,006 3,758 (A) Operated by Constellation Energy Generation, LLC. 37 Table of Contents
Biggest changePSEG Power Generation Facilities As of December 31, 2025, PSEG Power’s share of installed nuclear generating capacity is shown in the following table: Name Location Total Capacity (MW) % Owned Owned Capacity (MW) Nuclear: Hope Creek NJ 1,174 100 % 1,174 Salem 1 & 2 NJ 2,280 57 % 1,309 Peach Bottom 2 & 3 (A) PA 2,549 50 % 1,275 Total Nuclear 6,003 3,758 (A) Operated by Constellation Energy Generation, LLC. 37 Table of Contents
For a discussion of nuclear insurance, see Item 8. Note 13. Commitments and Contingent Liabilities. PSE&G Primarily all of PSE&G’s property is located in New Jersey and PSE&G’s First and Refunding Mortgage, which secures the bonds issued thereunder, constitutes a direct first mortgage lien on substantially all of PSE&G’s property.
For a discussion of nuclear insurance, see Item 8. Note 12. Commitments and Contingent Liabilities. PSE&G Primarily all of PSE&G’s property is located in New Jersey and PSE&G’s First and Refunding Mortgage, which secures the bonds issued thereunder, constitutes a direct first mortgage lien on substantially all of PSE&G’s property.
In addition, PSE&G owns four electric distribution headquarters and five electric sub-headquarters. Gas Property and Facilities As of December 31, 2024, PSE&G’s gas system included approximately 18,000 miles of gas mains, 12 gas distribution headquarters, two sub-headquarters, and two meter shops serving all of its gas territory in New Jersey.
In addition, PSE&G owns four electric distribution headquarters and five electric sub-headquarters. Gas Property and Facilities As of December 31, 2025, PSE&G’s gas system included approximately 18,000 miles of gas mains, 12 gas distribution headquarters, two sub-headquarters, and two meter shops serving all of its gas territory in New Jersey.
Solar As of December 31, 2024, PSE&G owned 158 MW dc of installed PV solar capacity throughout New Jersey.
Solar As of December 31, 2025, PSE&G owned 158 MW dc of installed PV solar capacity throughout New Jersey.
Electric Property and Facilities As of December 31, 2024, PSE&G’s electric T&D system included approximately 25,000 circuit miles and 869,000 poles, of which 64% are jointly-owned. In addition, PSE&G owns and operates 57 switching stations with an aggregate installed capacity of approximately 40,000 megavolt-amperes (MVA) and 234 substations with an aggregate installed capacity of approximately 10,750 MVA.
Electric Property and Facilities As of December 31, 2025, PSE&G’s electric T&D system included approximately 25,000 circuit miles and 871,000 poles, of which 64% are jointly-owned. In addition, PSE&G owns and operates 58 switching stations with an aggregate installed capacity of approximately 40,000 megavolt-amperes (MVA) and 238 substations with an aggregate installed capacity of approximately 10,890 MVA.

Item 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

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Biggest changeITEM 3. LEGAL PROCEEDINGS We are party to various lawsuits and environmental and regulatory matters, including in the ordinary course of business. For information regarding material legal proceedings, see Item 1. Business—Regulatory Issues and Environmental Matters and Item 8. Note 13. Commitments and Contingent Liabilities. ITEM 4. MINE S AFETY DISCLOSURES Not applicable. PA RT II
Biggest changeITEM 3. LEGAL PROCEEDINGS We are party to various lawsuits and environmental and regulatory matters, including in the ordinary course of business. For information regarding material legal proceedings, see Item 1. Business—Regulatory Issues and Environmental Matters and Item 8. Note 12. Commitments and Contingent Liabilities. ITEM 4. MINE S AFETY DISCLOSURES Not applicable. PA RT II

Item 4. Mine Safety Disclosures

Mine Safety Disclosures — required of mining issuers

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Biggest changeVariable Interest Entity (VIE) 91 Note 5. Property, Plant and Equipment and Jointly-Owned Facilities 92 Note 6. Regulatory Assets and Liabilities 93 Note 7. Leases 98 Note 8. Long-Term Investments 102 Note 9. Financing Receivables 103 Note 10. Trust Investments 104 Note 11. Asset Retirement Obligations (AROs) 111 Note 12.
Biggest changeProperty, Plant and Equipment and Jointly-Owned Facilities 93 Note 5. Regulatory Assets and Liabilities 94 Note 6. Leases 99 Note 7. Long-Term Investments 103 Note 8. Financing Receivables 104 Note 9. Trust Investments 105 Note 10. Asset Retirement Obligations (AROs) 111 Note 11. Pension, Other Postretirement Benefits (OPEB) and Savings Plans 112 Note 12.
Item 4. Mine Safety Disclosures 38 PART II Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 38 Item 6. [Reserved] 39 Item 7.
Item 4. Mine Safety Disclosures 38 PART II Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 38 Item 6. [Reserved] 40 Item 7.
Income Taxes 146 Note 21. Accumulated Other Comprehensive Income (Loss), Net of Tax 152 Note 22. Earnings Per Share (EPS) and Dividends 154 i Table of Contents TABLE OF CONTENTS (continued) Note 23. Financial Information by Business Segment 155 Note 24. Related-Party Transactions 158
Accumulated Other Comprehensive Income (Loss), Net of Tax 151 Note 21. Earnings Per Share (EPS) and Dividends 153 i Table of Contents TABLE OF CONTENTS (continued) Note 22. Financial Information by Business Segment 154 Note 23. Related-Party Transactions 157
Pension, Other Postretirement Benefits (OPEB) and Savings Plans 112 Note 13. Commitments and Contingent Liabilities 122 Note 14. Debt and Credit Facilities 129 Note 15. Schedule of Consolidated Capital Stock 133 Note 16. Financial Risk Management Activities 134 Note 17. Fair Value Measurements 138 Note 18. Stock Based Compensation 141 Note 19. Net Other Income (Deductions) 145 Note 20.
Commitments and Contingent Liabilities 122 Note 13. Debt and Credit Facilities 128 Note 14. Schedule of Consolidated Capital Stock 133 Note 15. Financial Risk Management Activities 133 Note 16. Fair Value Measurements 137 Note 17. Stock Based Compensation 141 Note 18. Net Other Income (Deductions) 144 Note 19. Income Taxes 145 Note 20.
Management’s Discussion and Analysis of Financial Condition and Results of Operations 40 Executive Overview of 2024 and Future Outlook 40 Results of Operations 46 Liquidity and Capital Resources 51 Capital Requirements 55 Critical Accounting Estimates 57 Item 7A. Quantitative and Qualitative Disclosures About Market Risk 62 Item 8.
Management’s Discussion and Analysis of Financial Condition and Results of Operations 41 Executive Overview of 2025 and Future Outlook 41 Results of Operations 48 Liquidity and Capital Resources 53 Capital Requirements 57 Critical Accounting Estimates 59 Item 7A. Quantitative and Qualitative Disclosures About Market Risk 64 Item 8.
Financial Statements and Supplementary Data 63 Report of Independent Registered Public Accounting Firm (PCAOB ID No. 34 ) 64 Consolidated Financial Statements 68 Notes to Consolidated Financial Statements Note 1. Organization, Basis of Presentation and Summary of Significant Accounting Policies 80 Note 2. Revenues 86 Note 3. Asset Dispositions and Impairments 91 Note 4.
Financial Statements and Supplementary Data 65 Report of Independent Registered Public Accounting Firm (PCAOB ID No. 34 ) 66 Consolidated Financial Statements 70 Notes to Consolidated Financial Statements Note 1. Organization, Basis of Presentation and Summary of Significant Accounting Policies 82 Note 2. Revenues 88 Note 3. Variable Interest Entity (VIE) 93 Note 4.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changeThe following graph shows a comparison of the five-year cumulative return assuming $100 invested on December 31, 2019 in our common stock and the subsequent reinvestment of quarterly dividends, the S&P Composite Stock Price Index, the Dow Jones Utilities Index and the S&P Electric Utilities Index. 2019 2020 2021 2022 2023 2024 PSEG $ 100.00 $ 102.37 $ 121.14 $ 114.98 $ 119.14 $ 169.91 S&P 500 $ 100.00 $ 118.39 $ 152.34 $ 124.73 $ 157.48 $ 196.85 DJ Utilities $ 100.00 $ 101.68 $ 119.44 $ 121.88 $ 115.43 $ 133.53 S&P Utilities $ 100.00 $ 100.52 $ 118.29 $ 120.14 $ 111.63 $ 137.79 On February 11, 2025, our Board of Directors approved a $0.63 per share common stock dividend for the first quarter of 2025.
Biggest changeThe following graph shows a comparison of the five-year cumulative return assuming $100 invested on December 31, 2020 in our common stock and the subsequent reinvestment of quarterly dividends, the S&P Composite Stock Price Index, the Dow Jones Utilities Index and the S&P Electric Utilities Index. 2020 2021 2022 2023 2024 2025 PSEG $ 100.00 $ 118.33 $ 112.30 $ 116.36 $ 165.95 $ 162.80 S&P 500 $ 100.00 $ 128.68 $ 105.36 $ 133.03 $ 166.28 $ 195.98 DJ Utilities $ 100.00 $ 117.01 $ 118.96 $ 112.19 $ 129.21 $ 144.69 S&P Utilities $ 100.00 $ 117.67 $ 119.51 $ 111.05 $ 137.07 $ 159.06 38 Table of Contents On February 24, 2026, our Board of Directors approved a $0.67 per share common stock dividend for the first quarter of 2026.
The number of shares available for future issuance may be increased or decreased depending on actual payouts for the PSUs based on achievement of targets and is increased by the number of shares that are forfeited, canceled or otherwise terminated without the issuance of shares. For additional discussion of specific plans concerning equity-based compensation, see Item 8. Note 18.
The number of shares available for future issuance may be increased or decreased depending on actual payouts for the PSUs based on achievement of targets and is increased by the number of shares that are forfeited, canceled or otherwise terminated without the issuance of shares. For additional discussion of specific plans concerning equity-based compensation, see Item 8. Note 17.
We expect to continue to pay cash dividends on our common stock; however, the declaration and payment of future dividends to holders of our common stock will be at the 38 Table of Contents discretion of the Board of Directors and will depend upon many factors, including our financial condition, earnings, capital requirements of our businesses, alternate investment opportunities, legal requirements, regulatory constraints, industry practice and other factors that the Board of Directors deems relevant.
We expect to continue to pay cash dividends on our common stock; however, the declaration and payment of future dividends to holders of our common stock will be at the discretion of the Board of Directors and will depend upon many factors, including our financial condition, earnings, capital requirements of our businesses, alternate investment opportunities, legal requirements, regulatory constraints, industry practice and other factors that the Board of Directors deems relevant.
The following table indicates the securities authorized for issuance under equity compensation plans as of December 31, 2024: Plan Category Number of Securities to be Issued upon Exercise of Outstanding Options, Warrants and Rights (a) Weighted-Average Exercise Price of Outstanding Options, Warrants and Rights (b) Number of Securities Remaining Available for Future Issuance under Equity Compensation Plans (excluding securities reflected in column (a)) (c) Equity Compensation Plans Approved by Security Holders — $ — 7,082,420 Equity Compensation Plans Not Approved by Security Holders — — — Total — $ — 7,082,420 The number of shares available for future issuance includes amounts remaining under our 2021 Long-Term Incentive Plan (2021 LTIP) and 2021 Equity Compensation Plan for Outside Directors and the Employee Stock Purchase Plan and reflect a reduction for non-vested restricted stock units and performance share units (PSUs) (assumed at target payout).
The following table indicates the securities authorized for issuance under equity compensation plans as of December 31, 2025: Plan Category Number of Securities to be Issued upon Exercise of Outstanding Options, Warrants and Rights (a) Weighted-Average Exercise Price of Outstanding Options, Warrants and Rights (b) Number of Securities Remaining Available for Future Issuance under Equity Compensation Plans (excluding securities reflected in column (a)) (c) Equity Compensation Plans Approved by Security Holders — $ — 5,937,370 Equity Compensation Plans Not Approved by Security Holders — — — Total — $ — 5,937,370 The number of shares available for future issuance includes amounts remaining under our 2021 Long-Term Incentive Plan (2021 LTIP) and 2021 Equity Compensation Plan for Outside Directors and the Employee Stock Purchase Plan and reflect a reduction for non-vested restricted stock units and performance share units (PSUs) (assumed at target payout).
This reflects an indicative annual dividend rate of $2.52 per share.
This reflects an indicative annual dividend rate of $2.68 per share.
ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSU ER PURCHASES OF EQUITY SECURITIES Our common stock is listed on the New York Stock Exchange, Inc. under the trading symbol “PEG.” As of February 21, 2025, there were 45,779 registered holders.
ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSU ER PURCHASES OF EQUITY SECURITIES Our common stock is listed on the New York Stock Exchange, Inc. under the trading symbol “PEG.” As of February 20, 2026, there were 43,642 registered holders.
Stock Based Compensation. PSE&G We own all of the common stock of PSE&G. For additional information regarding PSE&G’s ability to continue to pay dividends, see Item 7. MD&A—Liquidity and Capital Resources.
For additional information regarding PSE&G’s ability to continue to pay dividends, see Item 7. MD&A—Liquidity and Capital Resources.
Added
Stock Based Compensation. 39 Table of Contents From time to time, PSEG may repurchase shares to satisfy obligations under equity compensation awards and repurchase shares to satisfy purchases by employees under the Employee Stock Purchase Plan (ESPP).
Added
In November 2025, we entered into a share repurchase plan that complies with Rule 10b5-1 of the Exchange Act, solely with respect to the repurchase of shares to satisfy obligations under equity compensation awards and the repurchase of shares to satisfy purchases by employees under the ESPP.
Added
The following table indicates our common share repurchases in the open market during the fourth quarter of 2025 to satisfy obligations under equity compensation awards that were issued in 2025 and purchases by employees under the ESPP during 2025.
Added
Three Months Ended December 31, 2025 Total Number of Shares Purchased Average Price Paid per Share October 1 - October 31 — — November 1 - November 30 — — December 1 - December 31 850,000 $79.50 There are 865,000 additional shares that remain available to be repurchased under the plan to satisfy obligations under equity compensation awards anticipated to be issued in 2026 and purchases anticipated by employees under the ESPP during 2026.
Added
The plan expires on the earlier of the completion of all trades under the plan, April 30, 2026, or the occurrence of such other termination events as specified in the plan, including but not limited to termination of the plan. PSE&G We own all of the common stock of PSE&G.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

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Biggest changeManagement’s Discussion and Analysis of Financial Condition and Results of Operations in our Annual Report on Form 10-K for the year ended December 31, 2023 as filed with the SEC on February 26, 2024 for information related to the year ended December 31, 2023 as compared to 2022, which information is incorporated herein by reference. 49 Table of Contents PSEG Power & Other Years Ended December 31, Increase / (Decrease) Increase / (Decrease) 2024 2023 2022 2024 vs. 2023 2023 vs. 2022 Millions Millions % Millions % Operating Revenues $ 2,807 $ 4,533 $ 3,266 $ (1,726 ) (38 ) $ 1,267 39 Energy Costs 1,170 1,353 2,149 (183 ) (14 ) (796 ) (37 ) Operation and Maintenance 1,407 1,307 1,340 100 8 (33 ) (2 ) Depreciation and Amortization 157 155 165 2 1 (10 ) (6 ) Losses on Asset Dispositions and Impairments 6 7 123 (1 ) (14 ) (116 ) (94 ) Income from Equity Method Investments 1 1 14 — — (13 ) (93 ) Net Gains (Losses) on Trust Investments 127 189 (263 ) (62 ) (33 ) 452 N/A Net Other Income (Deductions) 94 96 36 (2 ) (2 ) 60 N/A Net Non-Operating Pension and OPEB (Costs) Credits (4 ) (332 ) 95 328 (99 ) (427 ) N/A Interest Expense 305 259 201 46 18 58 29 Income Tax Expense (Benefit) (245 ) 358 (296 ) (603 ) N/A 654 N/A Year Ended December 31, 2024 as compared to 2023 Operating Revenues decreased $1,726 million due primarily to changes in generation and gas supply and other operating revenues.
Biggest changeManagement’s Discussion and Analysis of Financial Condition and Results of Operations in our Annual Report on Form 10-K for the year ended December 31, 2024 as filed with the SEC on February 25, 2025 for information related to the year ended December 31, 2024 as compared to 2023, which information is incorporated herein by reference. 51 Table of Contents PSEG Power & Other Years Ended December 31, Increase / (Decrease) Increase / (Decrease) 2025 2024 2023 2025 vs. 2024 2024 vs. 2023 Millions Millions % Millions % Operating Revenues $ 3,722 $ 2,807 $ 4,533 $ 915 33 $ (1,726 ) (38 ) Energy Costs 1,489 1,170 1,353 319 27 (183 ) (14 ) Operation and Maintenance 1,519 1,413 1,314 106 8 99 8 Depreciation and Amortization 141 157 155 (16 ) (10 ) 2 1 Net Gains (Losses) on Trust Investments 189 127 189 62 49 (62 ) (33 ) Net Other Income (Deductions) 84 95 97 (11 ) (12 ) (2 ) (2 ) Net Non-Operating Pension and OPEB Costs 5 4 332 1 25 (328 ) (99 ) Interest Expense 364 305 259 59 19 46 18 Income Tax Expense (Benefit) 111 (245 ) 358 356 N/A (603 ) N/A Year Ended December 31, 2025 as compared to 2024 Operating Revenues increased $915 million due primarily to changes in generation and gas supply and other operating revenues.
PSE&G also invests in regulated solar generation projects and energy efficiency (EE) and related programs in New Jersey, which are regulated by the BPU, and • PSEG Power —which is an energy supply company that consists of the operations of merchant nuclear generating assets and fuel supply functions engaged in competitive energy sales via its principal direct wholly owned subsidiaries.
PSE&G also invests in regulated solar generation projects and regulated energy efficiency (EE) and related programs in New Jersey, which are regulated by the BPU, and • PSEG Power —which is an energy supply company that consists of the operations of merchant nuclear generating assets and fuel supply functions engaged in competitive energy sales via its principal direct wholly owned subsidiaries.
New Jersey Clean Energy Stakeholder Proceedings In February 2023, the governor of New Jersey issued executive orders (EOs) that establish or accelerate previously established 2050 targets for clean-sourced energy, building decarbonization, and EV adoption goals, with new target dates of 2030 or 2035, as applicable.
New Jersey Clean Energy Stakeholder Proceedings In February 2023, the previous governor of New Jersey issued executive orders (EOs) that establish or accelerate previously established 2050 targets for clean-sourced energy, building decarbonization, and EV adoption goals, with new target dates of 2030 or 2035, as applicable.
Other Operating Revenues are primarily comprised of revenues derived from various GPRC programs including Transition Renewable Energy Certificates (TREC) revenues, Community Solar collections and the Successor Solar Incentive Program (SuSI). The revenues from these programs offset costs included in Energy Costs.
Other Operating Revenues are primarily comprised of revenues derived from various GPRC programs including Transition Renewable Energy Certificates (TREC) revenues, Community Solar collections and the Successor Solar Incentive Program (SuSI) and ZECs. The revenues from these programs offset costs included in Energy Costs.
Effect if Different Assumptions Used: The above cash flow tests, and fair value estimates and estimated remaining useful lives may be impacted by a change in the assumptions noted above and could significantly impact the outcome, triggering additional impairment tests, write-offs or accelerated depreciation. 59 Table of Contents Asset Retirement Obligations (ARO) PSE&G, PSEG Power and Services recognize liabilities for the expected cost of retiring long-lived assets for which a legal obligation exists.
Effect if Different Assumptions Used: The above cash flow tests, and fair value estimates and estimated remaining useful lives may be impacted by a change in the assumptions noted above and could significantly impact the outcome, triggering additional impairment tests, write-offs or accelerated depreciation. 61 Table of Contents Asset Retirement Obligations (ARO) PSE&G, PSEG Power and Services recognize liabilities for the expected cost of retiring long-lived assets for which a legal obligation exists.
Current accounting guidance requires us to recognize all derivatives on the balance sheet at their fair value, except for derivatives that qualify for and are designated as normal purchases and normal sales contracts. 58 Table of Contents Assumptions and Approach Used : In general, the fair value of our derivative instruments is determined primarily by end of day clearing market prices from an exchange, such as the Intercontinental Exchange and Nodal Exchange, among others, or auction prices.
Current accounting guidance requires us to recognize all derivatives on the balance sheet at their fair value, except for derivatives that qualify for and are designated as normal purchases and normal sales contracts. 60 Table of Contents Assumptions and Approach Used : In general, the fair value of our derivative instruments is determined primarily by end of day clearing market prices from an exchange, such as the Intercontinental Exchange and Nodal Exchange, among others, or auction prices.
ZEC revenue will be adjusted based upon the actual value of the PTCs generated which is dependent on the U.S. Treasury issuing additional guidance. This would result in an additional adjustment to Net Income between $(29) million and $44 million if our tax position discussed above is, or is not supported, respectively. See Item 8. Note 20.
ZEC revenue will be adjusted based upon the actual value of the PTCs generated which is dependent on the U.S. Treasury issuing additional guidance. This would result in an additional adjustment to Net Income between $(29) million and $44 million if our tax position discussed above is, or is not supported, respectively. See Item 8. Note 19.
For additional information regarding Derivative Financial Instruments, see Item 8. Note 1. Organization, Basis of Presentation and Summary of Significant Accounting Policies, Note 16. Financial Risk Management Activities and Note 17. Fair Value Measurements. Long-Lived Assets Management evaluates long-lived assets for impairment and reassesses the reasonableness of their related estimated useful lives whenever events or changes in circumstances warrant assessment.
For additional information regarding Derivative Financial Instruments, see Item 8. Note 1. Organization, Basis of Presentation and Summary of Significant Accounting Policies, Note 15. Financial Risk Management Activities and Note 16. Fair Value Measurements. Long-Lived Assets Management evaluates long-lived assets for impairment and reassesses the reasonableness of their related estimated useful lives whenever events or changes in circumstances warrant assessment.
For additional information related to cash dividends on our common stock, see Item 8. Note 22. Earnings Per Share (EPS) and Dividends. Credit Ratings If the rating agencies lower or withdraw our credit ratings, such revisions may adversely affect the market price of our securities and serve to materially increase our cost of capital and limit access to capital.
For additional information related to cash dividends on our common stock, see Item 8. Note 21. Earnings Per Share (EPS) and Dividends. Credit Ratings If the rating agencies lower or withdraw our credit ratings, such revisions may adversely affect the market price of our securities and serve to materially increase our cost of capital and limit access to capital.
We utilize a corridor approach that reduces the volatility of reported costs/credits. The corridor requires differences between actuarial assumptions and plan results be deferred and amortized as part of the costs/credits. This occurs only when the accumulated differences exceed 10% of the greater of the benefit obligation or the fair value of plan assets as of each year-end.
We utilize a corridor approach that reduces the volatility of reported costs/credits. The corridor requires differences between actuarial assumptions and plan results be deferred and amortized as part of the costs/credits. Amortization occurs only when the accumulated differences exceed 10% of the greater of the benefit obligation or the fair value of plan assets as of each year-end.
The following discussion provides an overview of the significant events and business developments that have occurred during 2024 and key factors that we expect may drive our future performance. This discussion refers to the Consolidated Financial Statements (Statements) and the related Notes to the Consolidated Financial Statements (Notes). This discussion should be read in conjunction with such Statements and Notes.
The following discussion provides an overview of the significant events and business developments that have occurred during 2025 and key factors that we expect may drive our future performance. This discussion refers to the Consolidated Financial Statements (Statements) and the related Notes to the Consolidated Financial Statements (Notes). This discussion should be read in conjunction with such Statements and Notes.
As a result, a regulated utility is required to defer the recognition of costs (Regulatory Asset) 60 Table of Contents or recognize obligations (Regulatory Liability) if the rates established are designed to recover the costs and if the competitive environment makes it probable that such rates can be charged or collected.
As a result, a regulated utility is required to defer the recognition of costs (Regulatory Asset) 62 Table of Contents or recognize obligations (Regulatory Liability) if the rates established are designed to recover the costs and if the competitive environment makes it probable that such rates can be charged or collected.
Effect if Different Assumptions Used : A change in the above assumptions may result in a material impact on our results of operations or our cash flows. See Item 8. Note 6. Regulatory Assets and Liabilities for a description of the amounts and nature of regulatory balance sheet amounts.
Effect if Different Assumptions Used : A change in the above assumptions may result in a material impact on our results of operations or our cash flows. See Item 8. Note 5. Regulatory Assets and Liabilities for a description of the amounts and nature of regulatory balance sheet amounts.
In order to do this, we will continue to: • seek approval of and execute on our utility capital investment program to modernize our infrastructure, improve the reliability and resilience of the service we provide to our customers, and align our sustainability and climate goals with New Jersey’s energy policy, • seek a fair return for our T&D investments through our transmission formula rate, existing rate incentives, distribution infrastructure and clean energy investment programs and periodic distribution base rate case proceedings, 44 Table of Contents • focus on controlling costs while maintaining safety, reliability and customer satisfaction and complying with applicable standards and requirements, • manage the risks and opportunities in federal and state clean energy policies, • advocate for appropriate regulatory guidance on the PTC to ensure long-term support for New Jersey’s largest carbon-free generation resource, and adapt our hedging program accordingly, and realize the value of our consistent and reliable, carbon-free nuclear output, • engage constructively with our multiple stakeholders, including regulators, government officials, customers, employees, investors, suppliers and the communities in which we do business or are seeking to do business, and • deliver on our human capital management strategy to attract, develop and retain a high-performing diverse workforce.
In order to do this, we will seek to: • obtain approval of and execute on our utility capital investment program to meet increasing customer demand, modernize our infrastructure, improve the reliability and resilience of the service we provide to our customers, and align our sustainability and climate goals with New Jersey’s energy policy; • obtain a fair return for our T&D investments through our transmission formula rate, existing rate incentives, distribution infrastructure and clean energy investment programs and periodic distribution base rate case proceedings; 46 Table of Contents • focus on controlling costs while maintaining safety, reliability and customer satisfaction and complying with applicable standards and requirements; • manage the risks and opportunities in federal and state policies related to energy; • advocate for appropriate regulatory guidance on the PTC to ensure long-term support for New Jersey’s largest carbon-free generation resource, and adapt our hedging program accordingly, and realize the value of our consistent and reliable, carbon-free nuclear output; • engage constructively with our multiple stakeholders, including regulators, government officials, customers, employees, investors, suppliers and the communities in which we do business or are seeking to do business; and • deliver on our human capital management strategy to attract, develop and retain a high-performing diverse workforce.
Treasury supporting or not supporting our tax position could result in an additional income tax benefit (expense) between approximately $89 million and $(89) million, respectively. Further, ZEC revenue has been reduced by the estimated PTCs generated from PSEG Power’s Salem 1, Salem 2, and Hope Creek nuclear plants for the year ended December 31, 2024.
Treasury supporting or not supporting our tax position could result in an additional income tax benefit (expense) between approximately $89 million and $(89) million, respectively. Further, ZEC revenue was reduced by the estimated PTCs generated from PSEG Power’s Salem 1, Salem 2, and Hope Creek nuclear plants for the year ended December 31, 2024.
PSEG’s existing notes include a cross acceleration provision that may be triggered upon the acceleration of more than $75 million of indebtedness incurred by PSEG. Such provision does not extend to an acceleration of indebtedness by any of PSEG’s subsidiaries.
PSEG’s senior notes include a cross acceleration provision that may be triggered upon the acceleration of more than $75 million of indebtedness incurred by PSEG. Such provision does not extend to an acceleration of indebtedness by any of PSEG’s subsidiaries.
EXECUTIVE OVERVIEW OF 2 024 AND FUTURE OUTLOOK 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.
EXECUTIVE OVERVIEW OF 2 025 AND FUTURE OUTLOOK 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.
We are focused on investing to meet growing energy demand, modernize our energy infrastructure, improve reliability and resilience, increase EE and deliver clean energy to meet customer expectations and be well aligned with public policy objectives.
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.
As of December 31, 2024, our liquidity position, including our credit facilities and access to external financing, was expected to be sufficient to meet our projected stressed requirements over our 12-month planning horizon.
As of December 31, 2025, our liquidity position, including our credit facilities and access to external financing, was expected to be sufficient to meet our projected stressed requirements over our 12-month planning horizon.
The GSMP is designed to improve safety and reliability and significantly reduce natural gas leaks in our distribution system, which would reduce the release of methane, a potent GHG, into the air. Through GSMP II, from 2018 through 2024 we reduced reported methane emissions by over 30% system wide.
The GSMP is designed to improve safety and reliability and significantly reduce natural gas leaks in our distribution system, which would reduce the release of methane, a potent GHG, into the air. From 2018 through 2025 we reduced reported methane emissions by over 30% system wide.
Note 14. Debt and Credit Facilities. We continually monitor our liquidity and seek to add capacity as needed to meet our liquidity requirements, including to satisfy any additional collateral requirements.
Note 13. Debt and Credit Facilities. We continually monitor our liquidity and seek to add capacity as needed to meet our liquidity requirements, including to satisfy any additional collateral requirements.
The 2024, 2023 and 2022 amounts in the preceding table for Operating Revenues and O&M costs each include $592 million, $533 million and $516 million, respectively, for PSEG LI’s subsidiary, Long Island Electric Utility Servco, LLC (Servco). These amounts represent the O&M pass-through costs for the Long Island operations, the full reimbursement of which is reflected in Operating Revenues.
The 2025, 2024 and 2023 amounts in the preceding table for Operating Revenues and O&M costs each include $644 million, $592 million and $533 million, respectively, for PSEG LI’s subsidiary, Long Island Electric Utility Servco, LLC (Servco). These amounts represent the O&M pass-through costs for the Long Island operations, the full reimbursement of which is reflected in Operating Revenues.
Management’s Discussion and Analysis of Financial Condition and Results of Operations in our Annual Report on Form 10-K for the year ended December 31, 2023 as filed with the SEC on February 26, 2024 for information related to the year ended December 31, 2023 as compared to 2022, which information is incorporated herein by reference.
Management’s Discussion and Analysis of Financial Condition and Results of Operations in our Annual Report on Form 10-K for the year ended December 31, 2024 as filed with the SEC on February 25, 2025 for information related to the year ended December 31, 2024 as compared to 2023, which information is incorporated herein by reference.
Other Material Cash Requirements The following table reflects our other material cash requirements which include debt maturities and interest payments, operating lease payments and energy related purchase commitments in the respective periods in which they are due. For additional information, see Item 8. Note 14. Debt and Credit Facilities, Note 7. Leases and Note 13.
Other Material Cash Requirements The following table reflects our other material cash requirements which include debt maturities and interest payments, operating lease payments and energy related purchase commitments in the respective periods in which they are due. For additional information, see Item 8. Note 13. Debt and Credit Facilities and Note 6.
In addition to the risks described elsewhere in this Form 10-K for 2024 and beyond, the key issues and challenges we expect our business to confront include: • regulatory and political uncertainty, both with regard to transmission planning and rates policy, the role of distribution utilities and decarbonization impacts, future energy policy, tax regulations, design of energy and capacity markets, and environmental regulation, as well as with respect to the outcome of any legal, regulatory or other proceedings, • performance of the financial markets, including the impact on our pension funding requirements and interest rates on our future financing plans, • continuing to manage costs and maintain affordable customer rates in an inflationary environment, which could impact customer collections and future regulatory proceedings, • the increasing frequency, sophistication and magnitude of cybersecurity attacks against us and our respective vendors and business partners who may have our sensitive information and/or access to our environment, and the increasing frequency and magnitude of physical attacks on electric and gas infrastructure, • future changes in federal and state tax laws or any other associated tax guidance, and • the impact of changes in energy demand, natural gas and electricity prices, PJM’s challenge to ensure resource adequacy to meet demand growth, and expanded efforts to decarbonize several sectors of the economy.
In addition to the risks described elsewhere in this Form 10-K for 2025 and beyond, the key issues and challenges we expect our business to confront include: • regulatory and political uncertainty with regard to Federal and State energy and related policies, including transmission planning and rates policy, the role of distribution utilities and decarbonization impacts, design of energy and capacity markets, resource adequacy and affordability, tax regulation and environmental regulation, as well as with respect to the outcome of any legal, regulatory or other proceedings; • performance of the financial markets, including the impact on our pension funding requirements and interest rates on our future financing plans; • continuing to manage costs and maintain affordable customer rates, which could impact customer collections, investment programs and have other impacts; • the increasing frequency, sophistication and magnitude of cybersecurity attacks against us and our respective vendors and business partners who may have our sensitive information and/or access to our environment, and the increasing frequency and magnitude of physical attacks on electric and gas infrastructure; • future changes in federal and state tax laws or any other associated tax guidance; and • 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.
(B) S&P ratings range from AAA (highest) to D (lowest) for long-term securities and A1 (highest) to D (lowest) for short-term securities. Other Comprehensive Income For the year ended December 31, 2024, we had Other Comprehensive Income of $46 million on a consolidated basis.
(B) S&P ratings range from AAA (highest) to D (lowest) for long-term securities and A1 (highest) to D (lowest) for short-term securities. Other Comprehensive Income For the year ended December 31, 2025, we had Other Comprehensive Income of $42 million on a consolidated basis.
Effect if Different Assumptions Used: While we believe the amount of PTCs recognized for the year ended December 31, 2024, is more-than-likely to be sustained upon examination, the ultimate outcome could result in material favorable or unfavorable adjustments to our consolidated financial statements. Guidance issued by the U.S.
While we believe the amount of PTCs recognized for the year ended December 31, 2024, is more-than-likely to be sustained upon examination, the ultimate outcome could result in material favorable or unfavorable adjustments to our consolidated financial statements. Guidance issued by the U.S.
The PSE&G and PSEG Power bank credit agreements include certain similar default provisions; however, such provisions only relate to the respective borrower under such agreement and its subsidiaries and do not contain cross default provisions to each other. The PSE&G and PSEG Power bank credit agreements do not include cross default provisions relating to PSEG.
The PSE&G and PSEG Power bank credit agreements include certain similar default provisions; however, such provisions only 55 Table of Contents relate to the respective borrower under such agreement and its subsidiaries and do not contain cross default provisions to each other. The PSE&G and PSEG Power bank credit agreements do not include cross default provisions relating to PSEG.
The potential additional collateral that we would be required to post under these agreements if PSEG Power were to lose its investment grade credit rating was approximately $618 million and $751 million as of December 31, 2024 and 2023, respectively. See Item 8. Note 13. Commitments and Contingent Liabilities for additional discussion of PSEG Power’s agreements.
The potential additional collateral that we would be required to post under these agreements if PSEG Power were to lose its investment grade credit rating was approximately $703 million and $618 million as of December 31, 2025 and 2024, respectively. See Item 8. Note 12. Commitments and Contingent Liabilities for additional discussion of PSEG Power’s agreements.
With these investments and higher working capital recovery approved in the distribution rate case, our regulated rate base increased from approximately $30 billion as of December 31, 2023 to approximately $34 billion as of December 31, 2024.
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.
Significant inputs may include, but are not limited to, forward power prices, the impact of PTCs, ZEC payments for the New Jersey nuclear assets, fuel costs, other operating and capital expenditures, the cost of borrowing and asset sale prices and probabilities associated with any potential sale prior to the end of the estimated useful life or the early retirement of assets .
Significant inputs may include, but are not limited to, forward power prices, the impact of PTCs, fuel costs, other operating and capital expenditures, the cost of borrowing and asset sale prices and probabilities associated with any potential sale prior to the end of the estimated useful life or the early retirement of assets .
The variances in our Net Income (Loss) attributable to changes related to the NDT Fund and MTM are shown in the following table: Years Ended December 31, 2024 2023 2022 Millions, after tax NDT Fund and Related Activity (A) (B) $ 81 $ 109 $ (174 ) Non-Trading MTM Gains (Losses) (C) $ (151 ) $ 959 $ (457 ) (A) NDT Fund activity includes gains and losses on NDT securities which are recorded in Net Gains (Losses) on Trust Investments.
The variances in our Net Income attributable to changes related to the NDT Fund and MTM are shown in the following table: Years Ended December 31, 2025 2024 2023 Millions, after tax NDT Fund and Related Activity (A) (B) $ 136 $ 81 $ 109 Non-Trading MTM Gains (Losses) (C) $ (54 ) $ (151 ) $ 959 (A) NDT Fund activity includes gains and losses on NDT securities which are recorded in Net Gains (Losses) on Trust Investments.
PSEG Power At PSEG Power, we seek to produce low-cost electricity by efficiently operating our nuclear generation assets, mitigate earnings volatility through the PTC mechanism and hedging, and support public policies that preserve these existing carbon-free base load nuclear generating plants. During 2024, our nuclear units generated approximately 31 terawatt hours and operated at a capacity factor of approximately 90%.
PSEG Power 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 2025, our nuclear units generated approximately 30.9 terawatt hours and operated at a capacity factor of 91.2%.
Income Taxes and Note 2. Revenues for more information. 61 Table of Contents
Income Taxes and Note 2. Revenues for more information. 63 Table of Contents
Had the following assumptions been applied, our estimates of the approximate impacts on the Nuclear ARO as of December 31, 2024 are as follows: • A decrease of 1% in the discount rate would result in a $73 million increase in the Nuclear ARO. • An increase of 1% in the inflation rate would result in a $346 million increase in the Nuclear ARO. • If we were not reimbursed by the federal government for the spent costs, as prescribed under the Nuclear Waste Policy Act, the Nuclear ARO would increase by $105 million.
Had the following assumptions been applied, our estimates of the approximate impacts on the Nuclear ARO as of December 31, 2025 are as follows: • A decrease of 1% in the discount rate would result in a $61 million increase in the Nuclear ARO. • An increase of 1% in the inflation rate would result in a $360 million increase in the Nuclear ARO. • If we were not reimbursed by the federal government for the spent costs, as prescribed under the Nuclear Waste Policy Act, the Nuclear ARO would increase by $94 million.
Operating Cash Flows We continue to expect our operating cash flows combined with cash on hand and financing activities to be sufficient to fund planned capital expenditures and shareholder dividends. For the year ended December 31, 2024, our operating cash flow decreased $1,673 million, as compared to 2023.
Operating Cash Flows We continue to expect our operating cash flows combined with cash on hand and financing activities to be sufficient to fund planned capital expenditures and shareholder dividends. For the year ended December 31, 2025, our operating cash flow increased $1,165 million, as compared to 2024.
This reflects an indicative annual dividend rate of $2.52 per share.
This reflects an indicative annual dividend rate of $2.68 per share.
As of December 31, 2024, PSE&G’s Mortgage coverage ratio was 3.3 to 1 and the Mortgage would permit up to approximately $11 billion aggregate principal amount of new Mortgage Bonds to be issued against additions and improvements to its property.
As of December 31, 2025, PSE&G’s Mortgage coverage ratio was 3.9 to 1 and the Mortgage would permit up to approximately $10.2 billion aggregate principal amount of new Mortgage Bonds to be issued against additions and improvements to its property.
(PJM) that recognize the value of our nuclear fleet’s carbon-free generation and its contribution to grid reliability, and potential long-term contracts that recognize the value of its consistent and reliable carbon-free energy. Competitively Bid, FERC Regulated Transmission Projects PSEG continues to evaluate investment opportunities in regulated transmission beyond PSE&G.
(PJM) that recognize the value of our nuclear fleet’s carbon-free generation and its contribution to grid reliability and resource adequacy, and potential long-term contracts that recognize the value of its consistent and reliable carbon-free energy. Competitively Bid, FERC Regulated Transmission PSEG continues to evaluate additional investment opportunities in regulated transmission.
The Other Comprehensive Income was due primarily to $33 million of unrealized gains on derivative contracts accounted for as hedges, $26 million related to pension and other postretirement benefits, offset by $13 million of net unrealized losses related to available-for-sale debt securities. See Item 8. Note 21. Accumulated Other Comprehensive Income (Loss), Net of Tax for additional information.
The Other Comprehensive Income was due primarily to $34 million of net unrealized gains related to available-for-sale debt securities, $20 million related to pension and other postretirement benefits, partially offset by $12 million of unrealized losses on derivative contracts accounted for as hedges. See Item 8. Note 20. Accumulated Other Comprehensive Income (Loss), Net of Tax for additional information.
See Item 8. Note 4. Variable Interest Entity for additional information.
See Item 8. Note 3. Variable Interest Entity for additional information.
Assumption 2024 2023 2022 Pension Discount Rate 5.68 % 5.02 % 5.20 % Expected Rate of Return on Plan Assets 8.10 % 8.10 % 7.20 % OPEB Discount Rate 5.59 % 4.96 % 5.16 % Expected Rate of Return on Plan Assets 8.10 % 8.10 % 7.20 % 57 Table of Contents The discount rate used to calculate PSEG’s pension and OPEB obligations is determined as of December 31 each year, our measurement date.
Assumption 2025 2024 2023 Qualified Pension Discount Rate 5.50 % 5.68 % 5.02 % Expected Rate of Return on Plan Assets 8.10 % 8.10 % 8.10 % OPEB Discount Rate 5.31 % 5.59 % 4.96 % Expected Rate of Return on Plan Assets 8.10 % 8.10 % 8.10 % 59 Table of Contents The discount rate used to calculate PSEG’s pension and OPEB obligations is determined as of December 31 each year, our measurement date.
In particular, the historic operations of PSEG companies and the operations of numerous other companies along the Passaic and Hackensack Rivers are alleged by federal and state agencies to have discharged substantial contamination into the Passaic River/Newark Bay Complex in violation of various statutes.
In particular, the historic operations of PSEG companies and the operations of numerous other companies within the Newark Bay Complex are alleged by federal and state agencies to have discharged substantial contamination into the Newark Bay Complex in violation of various statutes.
Commitments and Contingent Liabilities. 56 Table of Contents The table below does not reflect any anticipated cash payments for pension and OPEB or AROs due to uncertain timing of payments. See Item 8. Note 12. Pension, Other Postretirement Benefits (OPEB) and Savings Plans and Note 11. Asset Retirement Obligations (AROs) for additional information.
Leases. 58 Table of Contents The table below does not reflect any anticipated cash payments for pension and OPEB or AROs due to uncertain timing of payments. See Item 8. Note 11. Pension, Other Postretirement Benefits (OPEB) and Savings Plans and Note 10. Asset Retirement Obligations (AROs) for additional information.
See Item 8. Note 10. Trust Investments for additional information.
See Item 8. Note 9. Trust Investments for additional information.
Competitively Bid, FERC Regulated Transmission In December 2023, PJM awarded us an approximately $424 million project to address increasing load and reliability issues in Maryland and northern Virginia as part of its 2022 Window 3 competitive solicitation. PJM has directed that the project be placed in service in 2027.
Competitively Bid, FERC Regulated Transmission In December 2023, PJM awarded us an approximately $424 million project to address increasing load and reliability issues in Maryland and northern Virginia as part of its 2022 Window 3 competitive solicitation.
The low end of the range includes an extension of our Gas System Modernization Program (GSMP) and Clean Energy Future (CEF)-EE program at their current average annual investment levels plus inflation, as these programs are expected to continue beyond their currently approved timeframes.
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 timeframes.
Year Ended December 31, 2024 as compared to 2023 Operating Revenues increased $642 million due to changes in delivery, clause, commodity and other operating revenues.
Year Ended December 31, 2025 as compared to 2024 Operating Revenues increased $1,109 million due to changes in delivery, clause, commodity and other operating revenues.
Effect if Different Assumptions Used : As part of the business planning process, we have modeled future costs assuming an 8.10% expected rate of return and a 5.68% discount rate for 2025 pension costs/credits and a 5.59% discount rate for 2025 OPEB costs/credits.
Effect if Different Assumptions Used : As part of the business planning process, we have modeled future costs assuming an 8.00% expected rate of return and a 5.50% discount rate for 2026 pension costs/credits and a 5.31% discount rate for 2026 OPEB costs/credits.
(B) Net of tax (expense) benefit of $(56) million, $(74) million and $97 million for the years ended December 31, 2024, 2023 and 2022, respectively. (C) Net of tax (expense) benefit of $59 million, $(376) million and $178 million for the years ended December 31, 2024, 2023 and 2022, respectively.
(B) Net of tax (expense) benefit of $(87) million, $(56) million, and $(74) million for the years ended December 31, 2025, 2024 and 2023, respectively. (C) Net of tax (expense) benefit of $21 million, $59 million, and $(376) million for the years ended December 31, 2025, 2024 and 2023, respectively.
In 2024, PSEG Power & Other made capital expenditures of $251 million, excluding $208 million for nuclear fuel, primarily related to various nuclear projects at PSEG Power and various IT projects at Services.
In 2025, PSEG Power & Other made capital expenditures of $236 million, excluding $336 million for nuclear fuel, primarily related to various nuclear projects at PSEG Power and various IT projects at Services.
We expect these capital investments to result in a compound annual growth rate in our regulated rate base in a range of 6% to 7.5% from year-end 2024 to year-end 2029. The regulated capital investments represent the majority of PSEG’s total capital investment program of $22.5 billion to $26 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.
PSE&G’s dividend payments to/capital contributions from PSEG are consistent with its capital structure objectives which have been established to maintain investment grade credit ratings. PSE&G’s long-term financing plan is designed to replace maturities, fund a portion of its capital program and manage short-term debt balances.
PSE&G’s dividend payments to/capital contributions from PSEG are consistent with its capital structure objectives which have been established to maintain investment grade credit ratings. PSE&G’s long-term financing plan is designed to replace maturities, fund a portion of its capital program and manage short-term debt balances. Generally, PSE&G uses either secured medium-term notes or first mortgage bonds to raise long-term capital.
Common Stock Dividends Years Ended December 31, Dividend Payments on Common Stock 2024 2023 2022 Per Share $ 2.40 $ 2.28 $ 2.16 in Millions $ 1,196 $ 1,137 $ 1,079 On February 11, 2025, our Board of Directors approved a $0.63 per share common stock dividend for the first quarter of 2025.
Common Stock Dividends Years Ended December 31, Dividend Payments on Common Stock 2025 2024 2023 Per Share $ 2.52 $ 2.40 $ 2.28 in Millions $ 1,258 $ 1,196 $ 1,137 On February 24, 2026, our Board of Directors approved a $0.67 per share common stock dividend for the first quarter of 2026.
We also continue to focus on providing cleaner energy for our customers by working to preserve the economic viability of our nuclear units, which provide over 85% of the carbon-free energy in New Jersey.
We also continue to focus on working to preserve the economic viability of our nuclear units, which provide over 80% of the carbon-free energy in New Jersey.
The following chart reflects the sensitivities associated with a change in certain assumptions. % Change Impact on Benefit Obligation as of December 31, 2024 Increase to Costs in 2025 Increase to Costs, net of Amounts Capitalized in 2025 Assumption Millions Pension Discount Rate (1 )% $ 467 $ 20 $ 14 Expected Rate of Return on Plan Assets (1 )% N/A $ 38 $ 38 OPEB Discount Rate (1 )% $ 61 $ — $ — Expected Rate of Return on Plan Assets (1 )% N/A $ 4 $ 4 See Item 7A.
The following chart reflects the sensitivities associated with a change in certain assumptions. % Change Impact on Benefit Obligation as of December 31, 2025 Increase to Costs in 2026 Increase to Costs, net of Amounts Capitalized in 2026 Assumption Millions Qualified Pension Discount Rate (1 )% $ 458 $ 19 $ 13 Expected Rate of Return on Plan Assets (1 )% N/A $ 41 $ 41 OPEB Discount Rate (1 )% $ 58 $ (1 ) $ (1 ) Expected Rate of Return on Plan Assets (1 )% N/A $ 4 $ 4 See Item 7A.
PSE&G PSE&G’s operating cash flow increased $185 million from $1,540 million to $1,725 million for the year ended December 31, 2024, as compared to 2023.
PSE&G PSE&G’s operating cash flow increased $643 million from $1,725 million to $2,368 million for the year ended December 31, 2025, as compared to 2024.
Default Provisions Our bank credit agreements and indentures contain various, customary default provisions that could result in the potential acceleration of indebtedness under the defaulting company’s agreement. 53 Table of Contents In particular, PSEG’s bank credit agreement contains provisions under which certain events, including an acceleration of material indebtedness under PSE&G’s and PSEG Power’s respective financing agreements, a failure by PSEG, PSE&G or PSEG Power to satisfy certain final judgments and certain bankruptcy events by PSEG, PSE&G or PSEG Power, would constitute an event of default under the PSEG bank credit agreements.
In particular, PSEG’s bank credit agreement contains provisions under which certain events, including an acceleration of material indebtedness under PSE&G’s and PSEG Power’s respective financing agreements, a failure by PSEG, PSE&G or PSEG Power to satisfy certain final judgments and certain bankruptcy events by PSEG, PSE&G or PSEG Power, would constitute an event of default under the PSEG bank credit agreements.
Clause Revenues increased $141 million due primarily to a $132 million net increase in Tax Adjustment Credits (TAC) and Green Program Recovery Charge (GPRC) deferrals and $10 million in higher Societal Benefits Clause (SBC) collections. Commodity Revenues are revenues from customers choosing default electric (basic generation service or BGS) and gas supply (basic gas supply service of BGSS) from PSE&G.
Clause Revenues decreased $94 million due primarily to a $186 million decrease in Tax Adjustment Credits (TAC) and Green Program Recovery Charge (GPRC) deferrals, offset by $91 million in higher Societal Benefits Clause (SBC) collections. Commodity Revenues are revenues from customers choosing default electric (basic generation service or BGS) and gas supply (basic gas supply service or BGSS) from PSE&G.
Each of our credit facilities is restricted as to availability and use to the specific companies as listed below; however, if necessary, the PSEG facilities can also be used to support our subsidiaries’ liquidity needs. PSEG Power has uncommitted credit facilities totaling $200 million, which can be utilized for letters of credit.
Each of our credit facilities is restricted as to availability and use to the specific companies as listed below; however, if necessary, the PSEG facilities can also be used to support our subsidiaries’ liquidity needs.
For one of PSEG’s qualified pension plans, the excess would be amortized over the average remaining expected life of inactive participants, which is approximately eighteen years. For PSEG’s other qualified pension plan, the excess would be amortized over the average remaining service period of active employees, which is approximately fifteen years.
For PSEG’s qualified pension plan, the excess would be amortized over the average remaining service period of active employees, which is approximately fifteen years.
CRITICAL AC COUNTING ESTIMATES Under accounting guidance generally accepted in the United States (GAAP), many accounting standards require the use of estimates, variable inputs and assumptions (collectively referred to as estimates) that are subjective in nature.
(B) Represents the nuclear fuel and natural gas commitments for the facilities we operate. CRITICAL AC COUNTING ESTIMATES Under accounting guidance generally accepted in the United States (GAAP), many accounting standards require the use of estimates, variable inputs and assumptions (collectively referred to as estimates) that are subjective in nature.
PSE&G’s approved CEF-EE and EE II, CEF-Energy Cloud and CEF-EV programs and the proposed CEF-ES program 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.
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.
Management uses judgments in determining the amount of income tax benefit to recognize due to the uncertainties associated with the technical merits of each position and with consideration to the amount of benefit to be sustained upon examination by a taxing authority.
Management uses judgments in determining the amount of income tax benefit to recognize due to the uncertainties associated with the technical merits of each position and with consideration to the amount of benefit to be sustained upon examination by a taxing authority. The estimated PTC benefits are subject to change based on the issuance of authoritative guidance by the U.S.
Nuclear Decommissioning AROs AROs related to the future decommissioning of PSEG Power’s nuclear facilities comprised approximately 100% or $1,035 million of PSEG’s total AROs as of December 31, 2024.
Nuclear Decommissioning AROs AROs related to the future decommissioning of PSEG Power’s nuclear facilities comprised nearly 100% or $916 million of PSEG Power’s total AROs as of December 31, 2025.
Our current sources of external liquidity include the Master Credit Facility. This facility is available to back-stop PSEG’s commercial paper program, issue letters of credit and for general corporate purposes.
PSEG’s available sources of external liquidity may include the issuance of long-term debt securities and the incurrence of additional indebtedness through our commercial paper program back-stopped by our credit facility. Our current sources of external liquidity include the Master Credit Facility. This facility is available to back-stop PSEG’s commercial paper program, issue letters of credit and for general corporate purposes.
We have established a net zero greenhouse gas (GHG) emissions by 2030 goal that includes direct GHG emissions (Scope 1) and indirect GHG emissions from operations (Scope 2) across our business operations, assuming advances in technology, public policy and customer behavior, which goal supports New Jersey's clean energy and climate goals.
We have adjusted our net zero greenhouse gas (GHG) emissions goal that includes direct GHG emissions (Scope 1) and indirect GHG emissions from operations (Scope 2) across our business operations, which supports New Jersey's clean energy and climate goals, from 2030 to 2050.
The following discussions for PSE&G and PSEG Power provide a detailed explanation of their respective variances. 47 Table of Contents PSE&G Years Ended December 31, Increase / (Decrease) Increase / (Decrease) 2024 2023 2022 2024 vs. 2023 2023 vs. 2022 Millions Millions % Millions % Operating Revenues $ 8,449 $ 7,807 $ 7,935 $ 642 8 $ (128 ) (2 ) Energy Costs 3,189 3,010 3,270 179 6 (260 ) (8 ) Operation and Maintenance (A) 1,949 1,843 1,838 106 6 5 — Depreciation and Amortization 1,025 980 935 45 5 45 5 Net Gains (Losses) on Trust Investments — — (2 ) — — 2 N/A Net Other Income (Deductions) 64 80 88 (16 ) (20 ) (8 ) (9 ) Net Non-Operating Pension and OPEB Credits 77 114 281 (37 ) (32 ) (167 ) (59 ) Interest Expense 582 493 427 89 18 66 15 Income Tax Expense 298 160 267 138 86 (107 ) (40 ) (A) Includes amortization of EE programs regulatory investment expenditures of $125 million, $82 million and $48 million for the years ended December 31, 2024, 2023 and 2022, respectively.
The following discussions for PSE&G and PSEG Power provide a detailed explanation of their respective variances. 49 Table of Contents PSE&G Years Ended December 31, Increase / (Decrease) Increase / (Decrease) 2025 2024 2023 2025 vs. 2024 2024 vs. 2023 Millions Millions % Millions % Operating Revenues $ 9,558 $ 8,449 $ 7,807 $ 1,109 13 $ 642 8 Energy Costs 3,782 3,189 3,010 593 19 179 6 Operation and Maintenance (A) 2,253 1,949 1,843 304 16 106 6 Depreciation and Amortization 1,116 1,025 980 91 9 45 5 Net Other Income (Deductions) 64 64 80 — — (16 ) (20 ) Net Non-Operating Pension and OPEB Credits 70 77 114 (7 ) (9 ) (37 ) (32 ) Interest Expense 644 582 493 62 11 89 18 Income Tax Expense 152 298 160 (146 ) (49 ) 138 86 (A) Includes amortization of EE programs regulatory investment expenditures of $169 million, $125 million and $82 million for the years ended December 31, 2025, 2024 and 2023, respectively.
Based upon these assumptions, we have estimated a net periodic pension expense in 2025 of approximately $37 million, or $0 million, net of amounts capitalized, and a net periodic OPEB expense in 2025 of approximately $3 million, or $2 million, net of amounts capitalized.
Based upon these assumptions, we have estimated a net periodic pension expense in 2026 of approximately $27 million, or pension income of $10 million, net of amounts capitalized, and net periodic OPEB income in 2026 of approximately $8 million, or $8 million, net of amounts capitalized.
PSEG Power’s sources of external liquidity include the Master Credit Facility and PSEG Power’s letter of credit facilities and may include the issuance of long-term debt securities and entering into short-term loan agreements.
Additionally, from time to time, PSEG enters into short-term loan agreements designed to enhance its liquidity position. 53 Table of Contents PSEG Power’s sources of external liquidity include the Master Credit Facility and PSEG Power’s letter of credit facilities and may include the issuance of long-term debt securities and entering into short-term loan agreements.
Commodity Revenues increased $143 million due to higher electric BGS revenues of $276 million from higher prices and sales volumes, offset by lower gas BGSS revenues of $133 million primarily from lower prices.
Commodity Revenues increased $706 million due to higher electric BGS revenues of $575 million primarily from higher prices, and higher gas BGSS revenues of $131 million primarily from higher sales volumes.
The net decrease was primarily due to an outflow of $131 million in net cash collateral postings in 2024 as compared to a $1,408 million inflow in 2023 at PSEG Power, partially offset by a net change at PSE&G, as discussed below.
The net increase was primarily due to a net change at PSE&G, as discussed below, combined with an inflow of $22 million in net cash collateral postings in 2025 as compared to a $131 million outflow in 2024 at PSEG Power, and an $89 million decrease in payments to counterparties at PSEG Power.
PSEG’s Master Credit Facility and the commercial paper program are available to support PSEG’s working capital needs and are also available to make equity contributions or provide liquidity support to its subsidiaries. Additionally, from time to time, PSEG enters into short-term loan agreements designed to enhance its liquidity position.
PSEG’s Master Credit Facility and the commercial paper program are available to support PSEG’s working capital needs and are also available to make equity contributions or provide liquidity support to its subsidiaries.
Moody’s (A) S&P (B) PSEG Outlook Stable Stable Senior Notes Baa2 BBB Commercial Paper P2 A2 PSE&G Outlook Stable Stable Mortgage Bonds A1 A Commercial Paper P2 A2 PSEG Power Outlook Stable Stable Issuer Rating Baa2 BBB (A) Moody’s ratings range from Aaa (highest) to C (lowest) for long-term securities and P1 (highest) to NP (lowest) for short-term securities.
The ratings should not be construed as an indication to buy, hold or sell any security. 56 Table of Contents Moody’s (A) S&P (B) PSEG Outlook Stable Stable Senior Notes Baa2 BBB Commercial Paper P2 A2 PSE&G Outlook Stable Stable Mortgage Bonds A1 A Commercial Paper P2 A2 PSEG Power Outlook Stable Stable Senior Notes Baa2 BBB (A) Moody’s ratings range from Aaa (highest) to C (lowest) for long-term securities and P1 (highest) to NP (lowest) for short-term securities.
Strategic options available to us include: • investments in PSE&G, including T&D facilities to enhance reliability, resiliency and modernize the system to meet the growing needs and increasingly higher expectations of customers, and clean energy investments, particularly our EE programs, • continued operation of our nuclear generation facilities that are expected to be supported by the PTC through 2032 and can enable certain investments to increase the capacity of the units as well as potential license extensions, transition from an 18-month to 24-month refueling cycle at our Hope Creek facility and energy and/or emission credit sales with potential customers seeking consistent and reliable carbon-free power, • investments in competitive, regulated transmission investments through PJM processes and BPU solicitations that provide revenue predictability and reasonable risk-adjusted returns, and • acquisitions, dispositions, development and other transactions involving our common stock, assets or businesses that could provide value to customers and shareholders.
Strategic options available to us include: • investments in PSE&G, including T&D facilities to enhance reliability, resiliency and modernize the system to meet the growing needs and increasingly higher expectations of customers, and clean energy investments, particularly our EE programs; • continued operation of our nuclear generation facilities that are expected to be supported by the PTC through 2032, nuclear capacity uprates, such as our planned Salem power uprate supported by a clean energy PTC, as well as obtaining license extensions and energy and/or emission credit sales with potential customers seeking consistent and reliable carbon-free power, as well as opportunities that may arise from our enabling of new nuclear projects, including providing services for these projects; • investments in competitive, regulated transmission and the potential enabling of investments in generation through PJM processes and BPU solicitations that provide revenue predictability and reasonable risk-adjusted returns; and • acquisitions, dispositions, development and other transactions involving our common stock, assets or businesses that could provide value to customers and shareholders. 47 Table of Contents There can be no assurance, however, that we will successfully develop and execute any of the strategic options noted above, or any additional options we may consider in the future.
The execution of any such strategic plan may not have the expected benefits or may have unexpected adverse consequences. 45 Table of Contents RESULTS OF O PERATIONS Years Ended December 31, 2024 2023 2022 Earnings (Losses) Millions, except per share data PSE&G $ 1,547 $ 1,515 $ 1,565 PSEG Power & Other (A)(B) 225 1,048 (534 ) PSEG Net Income $ 1,772 $ 2,563 $ 1,031 PSEG Net Income Per Share (Diluted) $ 3.54 $ 5.13 $ 2.06 (A) PSEG Power & Other results in 2023 include a $239 million after-tax pension charge due to the settlement of a portion of the qualified pension plans.
RESULTS OF O PERATIONS Years Ended December 31, 2025 2024 2023 Earnings Millions, except per share data PSE&G $ 1,745 $ 1,547 $ 1,515 PSEG Power & Other (A)(B) 366 225 1,048 PSEG Net Income $ 2,111 $ 1,772 $ 2,563 PSEG Net Income Per Share (Diluted) $ 4.22 $ 3.54 $ 5.13 (A) PSEG Power & Other results in 2023 include a $239 million after-tax pension charge due to the settlement of a portion of the qualified pension plans.
Beginning in 2024, our hedging strategy incorporated an estimated range of risk reduction impacts from the PTCs on our nuclear generation portfolio while retaining the ability to benefit when market pricing exceeds the phase out threshold.
Our hedging strategy continues to incorporate an estimated range of risk reduction impacts from the PTCs on our nuclear generation portfolio while retaining the ability to benefit when market pricing exceeds the level at which we would receive PTCs.
Interest Expense increased $89 million due primarily to long-term debt net issuances at higher rates in 2024 and 2023. Income Tax Expense increased $138 million due primarily to higher pre-tax income and a decrease in the flowback of excess deferred income tax benefits. Year Ended December 31, 2023 as compared to 2022 See Item 7.
Interest Expense increased $62 million due primarily to incremental debt and the replacement of maturing debt at higher rates. Income Tax Expense decreased $146 million primarily due to an increase in the flowback of excess deferred income tax benefits to customers, partially offset by higher pre-tax income. Year Ended December 31, 2024 as compared to 2023 See Item 7.
PSE&G maintains its own separate commercial paper program to meet its short-term liquidity requirements. Each commercial paper program is fully back-stopped by its own separate credit facility.
Short-Term Liquidity PSEG meets its short-term liquidity requirements, as well as those of PSEG Power, primarily through the issuance of commercial paper and, from time to time, short-term loans. PSE&G maintains its own separate commercial paper program to meet its short-term liquidity requirements. Each commercial paper program is fully back-stopped by its own separate credit facility.
Delivery revenues increased $321 million due primarily to $170 million from increased electric and gas revenues primarily as a result of the recently settled distribution base rate case, $99 million increase in transmission revenues due primarily to higher rate base investments, $26 million in increased revenues from Energy Strong II and IAP distribution rate roll ins, $42 million from increased GPRC revenues, $9 million from a reduction in revenue credits flowed back to customers as part of our TAC mechanism, offset by a decrease of $25 million in CIP decoupling revenues.
Delivery revenues increased $584 million due primarily to $577 million from increased electric and gas revenues primarily as a result of the 2024 distribution base rate case, $87 million from higher GPRC revenues and a $44 million increase in transmission revenues due primarily to higher rate base investments, offset primarily by a $146 million increase in revenue credits flowed back to customers as part of our TAC mechanism.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

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Biggest changeMTM VaR Years Ended December 31, 2024 2023 Millions 95% Confidence Level, Loss could exceed VaR one day in 20 days Period End $ 36 $ 48 Average for the Period $ 44 $ 56 High $ 152 $ 127 Low $ 25 $ 24 99.5% Confidence Level, Loss could exceed VaR one day in 200 days Period End $ 57 $ 75 Average for the Period $ 69 $ 87 High $ 238 $ 198 Low $ 39 $ 38 See Item 8.
Biggest changeMTM VaR Years Ended December 31, 2025 2024 Millions 95% Confidence Level, Loss could exceed VaR one day in 20 days Period End $ 63 $ 36 Average for the Period $ 41 $ 44 High $ 71 $ 152 Low $ 17 $ 25 99.5% Confidence Level, Loss could exceed VaR one day in 200 days Period End $ 99 $ 57 Average for the Period $ 64 $ 69 High $ 111 $ 238 Low $ 27 $ 39 See Item 8.
Exposure to this risk is managed by targeting a balanced debt maturity profile which limits refinancing in any given period or 62 Table of Contents interest rate environment. PSEG, PSE&G and PSEG Power may also use a mix of fixed and floating rate debt and interest rate hedges.
Exposure to this risk is managed by targeting a balanced debt maturity profile which limits refinancing in any given period or interest rate environment. PSEG, PSE&G and PSEG Power may also use a mix of fixed and floating rate debt and interest rate hedges.
The NDT Fund is comprised primarily of fixed income and equity securities. As of December 31, 2024, the portfolio included $1.4 billion of equity securities inclusive of $0.3 billion of investments in listed real assets, and $1.3 billion in fixed income securities.
The NDT Fund is comprised primarily of fixed income and equity securities. As of December 31, 2025, the portfolio included $1.5 billion of equity securities inclusive of $0.3 billion of investments in listed real assets, and $1.4 billion in fixed income securities.
As of December 31, 2024, a hypothetical 10% increase in market interest rates would result in an additional $4 million in pre-tax annual interest costs related to either the current or the long-term portion of long-term debt, and term loan agreements.
As of December 31, 2025, a hypothetical 10% increase in market interest rates would result in an additional $1 million in pre-tax annual interest costs related to either the current or the long-term portion of long-term debt, and term loan agreements.
The portfolio’s value will appreciate or depreciate by the duration with a 1% change in interest rates. As of December 31, 2024, a hypothetical 1% increase in interest rates would result in a decline in the market value for the fixed income portfolio of approximately $77 million.
The portfolio’s value will appreciate or depreciate by the duration with a 1% change in interest rates. As of December 31, 2025, a hypothetical 1% increase in interest rates would result in a decline in the market value for the fixed income portfolio of approximately $81 million.
The fair market value of the assets in the NDT Fund will fluctuate primarily depending upon the performance of equity markets. As of December 31, 2024, a hypothetical 10% change in the equity market would impact the value of the equity securities in the NDT Fund by approximately $138 million.
The fair market value of the assets in the NDT Fund will fluctuate primarily depending upon the performance of equity markets. As of December 31, 2025, a hypothetical 10% change in the equity market would impact the value of the equity securities in the NDT Fund by approximately $155 million.
Debt and Equity Securities As of December 31, 2024, we had $4.4 billion of net assets in trust for our pension and OPEB plans.
Debt and Equity Securities As of December 31, 2025, we had $4.8 billion of net assets in trust for our pension and OPEB plans.
Note 16. Financial Risk Management Activities for a discussion of credit risk. Interest Rates PSEG, PSE&G and PSEG Power are subject to the risk of fluctuating interest rates in the normal course of business.
Note 15. Financial Risk Management Activities for a discussion of credit risk. 64 Table of Contents Interest Rates PSEG, PSE&G and PSEG Power are subject to the risk of fluctuating interest rates in the normal course of business.
We use duration to measure the interest rate sensitivity of the fixed income portfolio. Duration is a summary statistic of the effective average maturity of the fixed income portfolio. The benchmark for the fixed income component of the NDT Fund currently has a duration of 6.08 years and a yield of 4.91%.
We use duration to measure the interest rate sensitivity of the fixed income portfolio. Duration is a summary statistic of the effective average maturity of the fixed income portfolio. The benchmark for the fixed income component of the NDT Fund currently has a duration of 5.98 years and a yield of 4.32%.

Other PEG 10-K year-over-year comparisons