pseg power llc · slideshow presentation used during the earnings call is furnished as exhibit 99.1...

UNITED STATESSECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORTPursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) February 26, 2020

Public Service Enterprise Group Incorporated(Exact name of registrant as specified in its charter)

New Jersey 001-09120 22-2625848(State or other jurisdiction

of incorporation (Commission

File Number) (I.R.S. Employer

Identification Number)

80 Park PlazaNewark, New Jersey 07102

(Address of principal executive offices) (Zip Code)

973 430-7000(Registrant’s telephone number, including area code)

Public Service Electric and Gas Company(Exact name of registrant as specified in its charter)

New Jersey 001-00973 22-1212800(State or other jurisdiction







PSEG Power LLC(Exact name of registrant as specified in its charter)

Delaware 001-34232 22-3663480(State or other jurisdiction







Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of thefollowing provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class TradingSymbol(s)

Name of Each ExchangeOn Which Registered

Public Service Enterprise Group Incorporated Common Stock without par value PEG New York Stock Exchange

Public Service Electric and Gas Company 9.25% First and Refunding Mortgage Bonds, Series CC, due 2021 PEG21 New York Stock Exchange8.00% First and Refunding Mortgage Bonds, due 2037 PEG37D New York Stock Exchange5.00% First and Refunding Mortgage Bonds, due 2037 PEG37J New York Stock Exchange

PSEG Power LLC 8.625% Senior Notes, due 2031 PEG31 New York Stock Exchange

Indicate by check mark whether any of the registrants is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 ofthis chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if such registrant has elected not to use the extended transition period for complying with any newor revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act ☐

The information contained in Item 2.02. Results of Operations and Financial Condition in this Form 8-K is furnished solely for Public Service EnterpriseGroup Incorporated (PSEG). The information contained in Item 7.01 Regulation FD Disclosure in this combined Form 8-K is separately furnished, as noted,by PSEG, Public Service Electric and Gas Company (PSE&G) and PSEG Power LLC (PSEG Power). Information contained herein relating to anyindividual company is provided by such company on its own behalf and in connection with its respective Form 8-K. PSE&G and PSEG Power each makesrepresentations only as to itself and makes no other representations whatsoever as to any other company. The materials furnished as Exhibits 99 and 99.1are available on the pseg.com website under the investor tab, or at http://investor.pseg.com.

Item 2.02 Results of Operations and Financial Condition

PSEG

On February 26, 2020, PSEG announced financial results for the three and twelve months ended December 31, 2019. A copy of the earnings release datedFebruary 26, 2020 is furnished as Exhibit 99 to this Form 8-K.

Item 7.01 Regulation FD Disclosure

PSEG, PSE&G and PSEG Power

On February 26, 2020, PSEG conducted an earnings call regarding its results for the three and twelve months ended December 31, 2019. A copy of theslideshow presentation used during the earnings call is furnished as Exhibit 99.1 to this Form 8-K.

Item 9.01 Financial Statements and Exhibits

Exhibit 99 Press Release dated February 26, 2020

Exhibit 99.1 Slideshow Presentation

Exhibit 104 Cover Page Interactive Data File (embedded within the Inline XBRL document).

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PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED(Registrant)

By: /s/ Rose M. Chernick ROSE M. CHERNICK Vice President and Controller (Principal Accounting Officer)

PUBLIC SERVICE ELECTRIC AND GAS COMPANY(Registrant)


PSEG POWER LLC (Registrant)


SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersignedthereunto duly authorized. The signature of the undersigned company shall be deemed to relate only to matters having reference to such company and anysubsidiaries thereof.

Date: February 26, 2020

SIGNATURE



SIGNATURE



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EXHIBIT 99

Public Service Enterprise Group80 Park PlazaNewark, NJ 07102

PSEG ANNOUNCES 2019 RESULTS

NET INCOME OF $3.33 PER SHARE

NON-GAAP OPERATING EARNINGS OF $3.28 PER SHARE

Non-GAAP 2020 Operating Earnings Guidance $3.30 - $3.50 per Share

(February 26, 2020 – Newark, NJ) Public Service Enterprise Group (PSEG) reported 2019 Net Income of $1,693 million, or $3.33 per share, as compared toNet Income of $1,438 million, or $2.83 per share for 2018. Non-GAAP Operating Earnings for 2019 were $1,666 million, or $3.28 per share, compared to$1,582 million, or $3.12 per share for 2018. Non-GAAP Operating Earnings for the full-year 2019 exclude items shown in Attachments 8 and 9.

PSEG also reported Net Income for the fourth quarter of 2019 of $437 million, or $0.86 per share. This compares to Net Income of $199 million, or $0.39per share in 2018’s fourth quarter. Non-GAAP Operating Earnings for the fourth quarter of 2019 were $330 million, or $0.64 per share, compared to fourthquarter 2018 non-GAAP Operating Earnings of $284 million, or $0.56 per share. Non-GAAP Operating Earnings for the fourth quarter of 2019 excludeitems shown in Attachments 8 and 9.

“Our full year 2019 non-GAAP Operating Earnings results rose by 5% over the prior year and delivered on our objective to grow regulated operations torepresent three quarters of PSEG’s non-GAAP Operating Earnings. The continued focus on operating excellence and cost discipline also contributed toPSEG’s ability to exceed the mid-point of our 2019 full-year earnings guidance” said Ralph Izzo, Chairman, President and Chief Executive Officer.

“During 2019, PSE&G settled its Energy Strong II (ES II) proposal with an $842 million program to continue work on improving resiliency and hardeningenergy infrastructure. PSEG continues to align its long-term business strategy with New Jersey’s progressive clean energy policies, which the state recentlyunderscored in its 2019 Energy Master Plan outlining key strategies to reach the Murphy Administration’s goal of 100% clean energy by 2050. Central tothis is PSE&G’s landmark $3.5 billion Clean Energy Future filing, pending review before the New Jersey Board of Public Utilities (BPU), which was filedto support implementation of New Jersey’s 2018 Clean Energy Act.”

“2019 was a busy and productive year in other respects as well. PSEG Power secured three years of support from Zero Emission Certificates (ZECs)awarded to our New

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Jersey nuclear units to recognize their carbon free attributes and enable their continued operation and economic viability. We also completed our combinedcycle gas turbine (CCGT) construction program with the addition of Bridgeport Harbor 5, and sold Power’s interests in Keystone and Conemaugh, movingus closer to eliminating coal in our generating mix by mid-2021.”

“PSEG’s capital allocation remains consistent with our intention to keep growing our regulated operations. We have outlined a $12 to $16 billion capitalprogram over the 2020 to 2024 period with the majority of the spend focused on updating critical utility infrastructure, which includes four years ofremaining work under ES II and the second phase of the Gas System Modernization Program (GSMP II). PSEG’s 2020-2024 capital plan also includes aportion of PSE&G’s $3.5 billion, six-year Clean Energy Future filing comprised of four programs that promote Energy Efficiency (EE), Energy Cloud -advanced metering infrastructure (AMI), Electric Vehicles and Energy Storage in New Jersey, which remains under review by the BPU. In addition, wehave identified incremental reliability and resiliency investments anticipated in the 2024 timeframe that we intend to seek approval for under the third phaseof existing infrastructure programs.”

“We finished 2019 well positioned to execute on our policy, regulatory and Environmental, Social and Governance priorities. PSEG recently adopted theSustainability Accounting Standards Board (SASB) disclosure practice and incorporated the U.N. Sustainable Development Goals in our 2019Sustainability Report. PSEG Power adopted a Net Zero by 2050 goal in July, assuming advancements in technology, public policy and customer behavior.And this coming April, we expect to issue our first Climate Report using science based targets and reporting under the Task Force on Climate-relatedFinancial Disclosures (TCFD) framework.”

“The combination of our investment programs, operational excellence mindset, prudent financial management and dedicated workforce continues toproduce long-term benefits for customers and to create value for our shareholders. The recent action by the Board of Directors to increase the commondividend by $0.08 to the indicative annual rate of $1.96 per share highlights our commitment to our shareholders while maintaining the financial strengthneeded to pursue growth initiatives.”

The following tables provide a reconciliation of PSEG’s Net Income to non-GAAP Operating Earnings for the full year and fourth quarter. See Attachments8 and 9 for a complete list of items excluded from Net Income in the determination of non-GAAP Operating Earnings.

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PSEG CONSOLIDATED RESULTS (unaudited)Full-Year Comparative Results

2019 and 2018

Income

($ millions) Diluted Earnings

Per Share 2019 2018 2019 2018 Net Income $1,693 $ 1,438 $ 3.33 $ 2.83

Reconciling Items (27) 144 (0.05) 0.29

Non-GAAP Operating Earnings $1,666 $ 1,582 $ 3.28 $ 3.12

Avg. Shares 507M 507M

PSEG CONSOLIDATED RESULTS (unaudited)Fourth Quarter Comparative Results

2019 and 2018

Income

($ millions) Diluted Earnings

Per Share 2019 2018 2019 2018 Net Income $ 437 $ 199 $ 0.86 $ 0.39

Reconciling Items (107) 85 (0.22) 0.17

Non-GAAP Operating Earnings $ 330 $ 284 $ 0.64 $ 0.56

Avg. Shares 507M 508M

Ralph Izzo went on to say, “For 2020, we expect to grow non-GAAP Operating Earnings by approximately 4% at the mid-point of our guidance of $3.30 -$3.50 per share. Notably, the earnings contribution of PSE&G is expected to approach 80% of our 2020 non-GAAP Operating Earnings at the mid-point ofguidance. We continue to direct over 90% of our planned capital investment program over the 2020 – 2024 period to grow regulated operations, and weexpect to fund this capital program without the need to issue new equity. PSE&G’s capital investment is projected to produce 6.5% to 8% compound annualgrowth in rate base over this period, starting from a year-end 2019 rate base of over $20 billion.”

The following table outlines PSEG’s 2019 non-GAAP Operating Earnings by subsidiary and expectations for 2020. PSEG’s full-year guidance for 2020consolidated results of $3.30 to $3.50 per share remains at a consistent $0.20 band as provided in recent years, while subsidiary guidance ranges aremodestly wider to allow for variability by business that is often offset in consolidated results.

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2020 Non-GAAP Operating Earnings Guidance and2019 Non-GAAP Operating Earnings

($ millions, except EPS)

2020E 2019A PSE&G $1,310 - $1,370 $1,250 PSEG Power $345 - $435 $ 409 PSEG Enterprise/Other $(5) $ 7 Non-GAAP Operating Earnings $1,675 - $1,775 $1,666 Non-GAAP Operating EPS $3.30 - $3.50 $ 3.28

E = Estimate A= Actual

Results and Outlook by Operating Subsidiary

PSE&G

Public Service Electric & GasFourth Quarter & Full Year Comparative Results

($ millions, except EPS)

PSE&G 4Q 2019 4Q 2018 FY 2019 FY 2018 Net Income $ 276 $ 239 $ 1,250 $ 1,067 Earnings Per Share $ 0.54 $ 0.47 $ 2.46 $ 2.10

PSE&G reported Net Income that increased by $0.07 per share over results from the fourth quarter of 2018. Growth in PSE&G’s investment in transmissionimproved quarter-over-quarter Net Income comparisons by $0.04 per share. Gas margin improved by $0.02 per share as a result of rate relief and recoveryof investment in gas distribution made under the Gas System Modernization Program. Electric margin was flat in the quarter, as one month of incrementalrate relief over 2018’s fourth quarter was offset by lower weather normalized volume and demand. Operating and maintenance expense improved by $0.02per share compared with the prior year quarter, reflecting lower tree trimming and preventative maintenance work. In addition, retiree medical plan benefitchanges implemented in 2019 had a $0.03 per share positive impact on Net Income compared to the year-earlier quarter. These positives were partiallyoffset by $0.01 per share of higher depreciation expense on higher plant balances, $0.01 of higher interest expense on higher debt outstanding, and highertaxes and other items that were $0.02 unfavorable compared with the year-earlier quarter.

New Jersey released its final 2019 Energy Master Plan in January 2020, which is supportive of implementing the goals of the 2018 Clean Energy Act. TheBPU is also completing a stakeholder process to define key terms and policy parameters regarding returns, amortization and lost revenue recovery related toimplementing energy efficiency programs statewide.

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In order to provide the BPU with additional time to review the CEF-EE filing, PSE&G has reached an agreement with parties in the CEF-EE matter to 1)extend several of its existing EE programs for six months, with an additional $111 million investment over the course of the programs, and 2) extend thetimeline for review of the CEF-EE filing to the end of September 2020. The agreement was approved by the BPU at its February 19th agenda meeting. Atthe same meeting, the BPU also lifted the state-wide moratorium on advanced metering infrastructure (AMI) and directed the electric distributioncompanies to file new proposals, or update previously filed proposals, to install AMI across the state. In addition, the BPU’s staff has circulated draftprocedural schedules covering the remaining $1 billion of proposed CEF investments in AMI, electric vehicles and energy storage, with target conclusionsin early 2021.

During 2019, PSE&G completed over 230 miles of replacement gas main and 16,000 replacement services in the first year of the GSMP II program. Ourcontinued focus on aging infrastructure has reduced PSE&G’s annual methane emissions by 40,000 metric tons of CO2 equivalent since 2018.

For the full-year, weather-normalized residential electric sales were 0.2% lower and weather-normalized residential gas sales declined by 1.8%. Totalelectric and gas customers for the full year increased by 0.9% and 0.6%, respectively.

For the 18th year in a row, PSE&G was recognized by PA Consulting’s ReliabilityOne award as the Most Reliable Electric Utility in the Mid-Atlanticregion.

PSE&G’s Net Income for 2020 is forecasted at $1,310 million - $1,370 million, reflecting incremental investments in Transmission and Distribution.

PSEG Power

Fourth Quarter & Full Year Comparative Results($ millions, except EPS)

PSEG Power 4Q 2019 4Q 2018 FY 2019 FY 2018 Net Income/(Loss) $ 159 $ (35) $ 468 $ 365 Earnings Per Share (EPS) $ 0.32 $ (0.07) $ 0.93 $ 0.72 Non-GAAP Operating Earnings $ 52 $ 57 $ 409 $ 502 Non-GAAP EPS $ 0.10 $ 0.11 $ 0.81 $ 0.99 Non-GAAP Adjusted EBITDA $ 198 $ 176 $ 1,035 $ 1,059

PSEG Power reported Net Income that increased by $0.39 per share and non-GAAP Operating Earnings that declined by $0.01 per share compared with thefourth quarter of 2018. A scheduled decline in capacity prices in PJM and ISO-New England in the second half of 2019 reduced fourth quarter non-GAAPOperating Earnings comparisons by $0.11 per share. Lower generation output for the quarter also reduced comparisons by $0.02 per share. The benefits of afull quarter of ZEC revenues of $0.06 per share and lower costs to serve of $0.05 per share were partly offset by a $0.03 per share decline fromre-contracting

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at lower market prices. Gas operations were flat as lower commodity prices pressured margins and limited off-system sales. A decline in O&M expenseimproved comparisons by $0.03 per share reflecting savings from the Keystone and Conemaugh sale and lower fall 2019 fossil outage expense that morethan offset higher costs related to the Hope Creek refueling outage and Bridgeport Harbor 5 in-service as of mid-year 2019. Higher interest and depreciationexpenses were offset by savings from retiree medical plan benefit changes implemented in 2019. Lower taxes improved non-GAAP Operating Earnings by$0.01 over the prior year’s fourth quarter.

Output from PSEG Power’s generating facilities in the fourth quarter declined by 6.2% from fourth quarter 2018, primarily reflecting the sale of theKeystone and Conemaugh coal-fired generating units at the end of the third quarter, as well as an extended refueling outage at Hope Creek. Full-year 2019output of 57 TWh was at the low end of our 57 – 59 TWh forecast. The nuclear fleet operated at an average capacity factor of 81.9% in the quarter, resultingin a full year capacity factor of 88.7% and total production of approximately 30 TWh. The CCGT fleet operated at an average capacity factor ofapproximately 54.8% in the quarter resulting in a full-year capacity factor of 52.2% and total production of approximately 23 TWh for the year, an increaseof over 20% year-over-year. Coal-fired generation for the quarter and the year was significantly reduced as a result of the sale of Keystone and Conemaugh.

PSEG Power is forecasting a decrease in output for both 2020 and 2021 to 50 - 52 TWh, down 2 TWh since the third quarter 2019 update, primarilyreflecting weak prices and lower market demand. Following completion of the recent Basic Generation Service (BGS) auction in New Jersey,approximately 85% - 90% of production for 2020 is hedged at an average price of $37 per MWh. For 2021, PSEG Power has hedged 45% - 50% of forecastoutput of 50 – 52 TWh at an average price of $36 per MWh. For 2022, PSEG Power has hedged 20% - 25% of forecast output of 50 – 52 TWh at anaverage price of $36 per MWh. The forecast for 2020 – 2022 volumes fully reflects the sale of Keystone and Conemaugh – which had producedapproximately 5 TWh of annual generation in prior years, generation from 1,800 MWs of the three new CCGTs, approximately 3 TWh of lower generationin each year consistent with current market conditions, and the planned retirement of 383 MW of coal-fired generation at Bridgeport Harbor 3 in June 2021.

For 2020, non-GAAP Operating Earnings and non-GAAP Adjusted EBITDA at PSEG Power are forecast to be $345 million - $435 million and $950million - $1,050 million, respectively. The PSEG Power segment guidance for 2020 reflects the benefits of including a full year of ZECs and thecontribution from all three new CCGT units, offset by lower expected generation volume and lower capacity revenues.

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PSEG Enterprise/Other

Fourth Quarter & Full Year Comparative Results($ millions, except EPS)

PSEG Enterprise/Other 4Q 2019 4Q 2018 FY 2019 FY 2018 Net Income/(Loss) $ 2 $ (5) $ (25) $ 6 Earnings/(Loss) Per Share (EPS) $ — $ (0.01) $ (0.06) $ 0.01 Non-GAAP Operating Earnings $ 2 $ (12) $ 7 $ 13 Non-GAAP EPS $ — $ (0.02) $ 0.01 $ 0.03

PSEG Enterprise/Other reported Net Income that increased by $0.01 per share and non-GAAP Operating Earnings that increased by $0.02 per sharecompared with the fourth quarter of 2018. The results for 2019’s non-GAAP Operating Earnings reflect lower taxes compared with the fourth quarter of2018.

For 2020, non-GAAP Operating Earnings for PSEG Enterprise/Other is forecast to be at a loss of ($5 million). The 2020 guidance for Enterprise/Otherreflects the continued contribution of PSEG Long Island results more than offset by higher parent interest expense.

###

Public Service Enterprise Group Inc. (PSEG) (NYSE: PEG) is a publicly traded diversified energy company with approximately 13,000 employees.Headquartered in Newark, N.J., PSEG’s principal operating subsidiaries are: Public Service Electric and Gas Co. (PSE&G), PSEG Power and PSEGLong Island. PSEG is a Fortune 500 company included in the S&P 500 Index and has been named to the Dow Jones Sustainability Index for North Americafor 12 consecutive years (https://corporate.pseg.com).

Non-GAAP Financial Measures

Management uses non-GAAP Operating Earnings in its internal analysis, and in communications with investors and analysts, as a consistent measure forcomparing PSEG’s financial performance to previous financial results. Non-GAAP Operating Earnings exclude the impact of returns (losses) associatedwith the Nuclear Decommissioning Trust (NDT), Mark-to-Market (MTM) accounting and material one-time items.

Management believes the presentation of non-GAAP Adjusted EBITDA for PSEG Power is useful to investors and other users of our financial statements inevaluating operating performance because it provides them with an additional tool to compare business performance across companies and across periods.Management also believes that non-GAAP Adjusted EBITDA is widely used by investors to measure operating performance without regard to items such asincome tax expense, interest expense and depreciation and amortization, which can vary substantially from company to company depending upon, amongother things, the book value of assets, capital structure and whether assets were constructed or acquired. Non-GAAP Adjusted EBITDA also allowsinvestors and other users to assess the underlying financial performance of our fleet before management’s decision to deploy capital. Non-GAAP AdjustedEBITDA excludes the same items as our non-GAAP Operating Earnings measure as well as income tax expense, interest expense and depreciation andamortization.

See Attachments 8 and 9 for a complete list of items excluded from Net Income in the determination of non-GAAP Operating Earnings and non-GAAPAdjusted EBITDA. The presentation of non-GAAP Operating Earnings and non-GAAP Adjusted EBITDA is intended to complement, and should not beconsidered an alternative to the presentation of Net Income, which is an indicator of financial performance determined in accordance with GAAP. Inaddition, non-GAAP Operating Earnings and non-GAAP Adjusted EBITDA as presented in this release may not be comparable to similarly titled measuresused by other companies.

Due to the forward looking nature of non-GAAP Operating Earnings and non-GAAP Adjusted EBITDA guidance, PSEG is unable to reconcile thesenon-GAAP financial measures to the most directly comparable GAAP financial measure. Management is unable to project certain reconciling items, inparticular MTM and NDT gains (losses), for future periods due to market volatility.

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Forward-Looking Statements

Certain of the matters discussed in this release about our and our subsidiaries’ future performance, including, without limitation, future revenues, earnings,strategies, prospects, consequences and all other statements that are not purely historical constitute “forward-looking statements” within the meaning of thePrivate Securities Litigation Reform Act of 1995. Such forward- looking statements are subject to risks and uncertainties, which could cause actual resultsto differ materially from those anticipated. Such statements are based on management’s beliefs as well as assumptions made by and information currentlyavailable to management. When used herein, the words “anticipate,” “intend,” “estimate,” “believe,” “expect,” “plan,” “should,” “hypothetical,” “potential,”“forecast,” “project,” variations of such words and similar expressions are intended to identify forward-looking statements. Factors that may cause actualresults to differ are often presented with the forward-looking statements themselves. Other factors that could cause actual results to differ materially fromthose contemplated in any forward- looking statements made by us herein are discussed in filings we make with the United States Securities and ExchangeCommission (SEC), including our Annual Report on Form 10-K and subsequent reports on Form 10-Q and Form 8-K. These factors include, but are notlimited to:

• fluctuations in wholesale power and natural gas markets, including the potential impacts on the economic viability of our generation units;

• our ability to obtain adequate fuel supply;

• market risks impacting the operation of our generating stations;

• increases in competition in wholesale energy and capacity markets;

• changes in technology related to energy generation, distribution and consumption and customer usage patterns;

• economic downturns;

• third-party credit risk relating to our sale of generation output and purchase of fuel;

• adverse performance of our nuclear decommissioning and defined benefit plan trust fund investments and changes in funding requirements;

• the impact of changes in state and federal legislation and regulations on our business, including PSE&G’s ability to recover costs and earn returns onauthorized investments;

• PSE&G’s proposed investment programs may not be fully approved by regulators and its capital investment may be lower than planned;

• the impact on our New Jersey nuclear plants if such plants are not awarded Zero Emission Certificates (ZEC) in future periods, there is an adversechange in the amount of future ZEC payments, the ZEC program is overturned or modified through legal proceedings or if adverse changes are made tothe capacity market construct;

• adverse changes in energy industry laws, policies and regulations, including market structures and transmission planning;

• the impact of state and federal actions aimed at combating climate change on our natural gas assets;

• risks associated with our ownership and operation of nuclear facilities, including regulatory risks, such as compliance with the Atomic Energy Act andtrade control, environmental and other regulations, as well as financial, environmental and health and safety risks;

• changes in federal and state environmental regulations and enforcement;

• delays in receipt of, or an inability to receive, necessary licenses and permits;

• the impact of any future rate proceedings;

• adverse outcomes of any legal, regulatory or other proceeding, settlement, investigation or claim applicable to us and/or the energy industry;

• changes in tax laws and regulations;

• the impact of our holding company structure on our ability to meet our corporate funding needs, service debt and pay dividends;

• lack of growth or slower growth in the number of customers or changes in customer demand;

• any inability of PSEG Power to meet its commitments under forward sale obligations;

• reliance on transmission facilities that we do not own or control and the impact on our ability to maintain adequate transmission capacity;

• any inability to successfully develop, obtain regulatory approval for, or construct generation, transmission and distribution projects;

• any equipment failures, accidents, severe weather events or other incidents that impact our ability to provide safe and reliable service to our customers;

• our inability to exercise control over the operations of generation facilities in which we do not maintain a controlling interest;

• any inability to recover the carrying amount of our long-lived assets and leveraged leases;

• any inability to maintain sufficient liquidity;

• any inability to realize anticipated tax benefits or retain tax credits;

• challenges associated with recruitment and/or retention of key executives and a qualified workforce;

• the impact of our covenants in our debt instruments on our operations; and

• the impact of acts of terrorism, cybersecurity attacks or intrusions.

All of the forward-looking statements made in this release are qualified by these cautionary statements and we cannot assure you that the results ordevelopments anticipated by management will be realized or even if realized, will have the expected consequences to, or effects on, us or our business,prospects, financial condition, results of operations or cash flows. Readers are cautioned not to place undue reliance on these forward-looking statements inmaking any investment decision. Forward looking statements made in this release apply only as of the date of this release. While we may elect to updateforward-looking statements from time to time, we specifically disclaim any obligation to do so, even in light of new information or future events, unlessotherwise required by applicable securities laws.

The forward-looking statements contained in this release are intended to qualify for the safe harbor provisions of Section 27A of the Securities Act of 1933,as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.

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From time to time, PSEG, PSE&G and PSEG Power release important information via postings on their corporate website at https://investor.pseg.com.Investors and other interested parties are encouraged to visit the corporate website to review new postings. The “Email Alerts” link athttps://investor.pseg.com may be used to enroll to receive automatic email alerts regarding new postings.

CONTACTS

Investor Relations: Media Relations:Carlotta Chan Marijke Shugrue973-430-6565 [email protected] [email protected]

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Attachment 1

PUBLIC SERVICE ENTERPRISE GROUP INCORPORATEDConsolidating Statements of Operations

(Unaudited, $ millions, except per share data) Three Months Ended December 31, 2019

PSEG PSEG Enterprise/

Other (a) PSE&G PSEG Power

OPERATING REVENUES $2,478 $ (244) $ 1,607 $1,115 OPERATING EXPENSES

Energy Costs 791 (415) 644 562 Operation and Maintenance 860 140 416 304 Depreciation and Amortization 320 8 217 95

Total Operating Expenses 1,971 (267) 1,277 961 OPERATING INCOME 507 23 330 154 Income from Equity Method Investments 4 — — 4 Net Gains (Losses) on Trust Investments 96 2 1 93 Other Income (Deductions) 24 (10) 23 11 Non-Operating Pension and OPEB Credits (Costs) 56 4 45 7 Interest Expense (152) (25) (93) (34)

INCOME (LOSS) BEFORE INCOME TAXES 535 (6) 306 235 Income Tax Benefit (Expense) (98) 8 (30) (76)

NET INCOME $ 437 $ 2 $ 276 $ 159

Reconciling Items Excluded from Net Income (b) (107) — — (107)

OPERATING EARNINGS (non-GAAP) $ 330 $ 2 $ 276 $ 52

Earnings Per Share NET INCOME $ 0.86 $ — $ 0.54 $ 0.32

Reconciling Items Excluded from Net Income (b) (0.22) — — (0.22)

OPERATING EARNINGS (non-GAAP) $ 0.64 $ — $ 0.54 $ 0.10

Three Months Ended December 31, 2018




Energy Costs 869 (435) 657 647 Operation and Maintenance 848 98 442 308 Depreciation and Amortization 304 9 201 94 Gain on Asset Dispositions (54) — — (54)

Total Operating Expenses 1,967 (328) 1,300 995

OPERATING INCOME 501 43 345 113 Income from Equity Method Investments 3 — — 3 Net Gains (Losses) on Trust Investments (174) (3) (1) (170) Other Income (Deductions) (14) (16) 19 (17) Non-Operating Pension and OPEB Credits (Costs) 19 — 15 4 Interest Expense (135) (19) (87) (29)

INCOME BEFORE INCOME TAXES 200 5 291 (96) Income Tax Benefit (Expense) (1) (10) (52) 61

NET INCOME (LOSS) $ 199 $ (5) $ 239 $ (35)

Reconciling Items Excluded from Net Income (Loss) (b) 85 (7) — 92

OPERATING EARNINGS (non-GAAP) $ 284 $ (12) $ 239 $ 57

Earnings Per Share NET INCOME (LOSS) $ 0.39 $ (0.01) $ 0.47 $ (0.07)

Reconciling Items Excluded from Net Income (Loss) (b) 0.17 (0.01) — 0.18

OPERATING EARNINGS (non-GAAP) $ 0.56 $ (0.02) $ 0.47 $ 0.11

(a) Includes activities at Energy Holdings, PSEG Long Island and the Parent as well as intercompany eliminations.(b) See Attachments 8 and 9 for details of items excluded from Net Income/(Loss) to compute Operating Earnings (non-GAAP).

Attachment 2

PUBLIC SERVICE ENTERPRISE GROUP INCORPORATEDConsolidating Statements of Operations

(Unaudited, $ millions, except per share data) Year Ended December 31, 2019




Energy Costs 3,372 (1,484) 2,738 2,118 Operation and Maintenance 3,111 490 1,581 1,040 Depreciation and Amortization 1,248 34 837 377 Loss on Asset Dispositions 402 — — 402

Total Operating Expenses 8,133 (960) 5,156 3,937 OPERATING INCOME 1,943 26 1,469 448 Income from Equity Method Investments 14 — — 14 Net Gains (Losses) on Trust Investments 260 5 2 253 Other Income (Deductions) 125 (12) 83 54 Non-Operating Pension and OPEB Credits (Costs) 177 6 150 21 Interest Expense (569) (89) (361) (119)

INCOME (LOSS) BEFORE INCOME TAXES 1,950 (64) 1,343 671 Income Tax Benefit (Expense) (257) 39 (93) (203)

NET INCOME (LOSS) $ 1,693 $ (25) $ 1,250 $ 468

Reconciling Items Excluded from Net Income (Loss) (b) (27) 32 — (59)

OPERATING EARNINGS (non-GAAP) $ 1,666 $ 7 $ 1,250 $ 409

Earnings Per Share NET INCOME (LOSS) $ 3.33 $ (0.06) $ 2.46 $ 0.93

Reconciling Items Excluded from Net Income (Loss) (b) (0.05) 0.07 — (0.12)

OPERATING EARNINGS (non-GAAP) $ 3.28 $ 0.01 $ 2.46 $ 0.81

Year Ended December 31, 2018



OPERATING REVENUES $ 9,696 $ (921) $ 6,471 $4,146 OPERATING EXPENSES

Energy Costs 3,225 (1,492) 2,520 2,197 Operation and Maintenance 3,069 441 1,575 1,053 Depreciation and Amortization 1,158 34 770 354 Gain on Asset Dispositions (54) — — (54)

Total Operating Expenses 7,398 (1,017) 4,865 3,550

OPERATING INCOME 2,298 96 1,606 596 Income from Equity Method Investments 15 — — 15 Net Gains (Losses) on Trust Investments (143) (2) (1) (140) Other Income (Deductions) 85 (16) 80 21 Non-Operating Pension and OPEB Credits (Costs) 76 2 59 15 Interest Expense (476) (67) (333) (76)

INCOME BEFORE INCOME TAXES 1,855 13 1,411 431 Income Tax Expense (417) (7) (344) (66)

NET INCOME $ 1,438 $ 6 $ 1,067 $ 365

Reconciling Items Excluded from Net Income (b) 144 7 — 137

OPERATING EARNINGS (non-GAAP) $ 1,582 $ 13 $ 1,067 $ 502

Earnings Per Share NET INCOME $ 2.83 $ 0.01 $ 2.10 $ 0.72

Reconciling Items Excluded from Net Income (b) 0.29 0.02 — 0.27

OPERATING EARNINGS (non-GAAP) $ 3.12 $ 0.03 $ 2.10 $ 0.99

(a) Includes activities at Energy Holdings, PSEG Long Island and the Parent as well as intercompany eliminations.(b) See Attachments 8 and 9 for details of items excluded from Net Income/(Loss) to compute Operating Earnings (non-GAAP).

Attachment 3

PUBLIC SERVICE ENTERPRISE GROUP INCORPORATEDCapitalization Schedule(Unaudited, $ millions)

December 31,2019

December 31,2018

DEBT Commercial Paper and Loans $ 1,115 $ 1,016 Long-Term Debt* 15,108 14,462

Total Debt 16,223 15,478

STOCKHOLDERS’ EQUITY Common Stock 5,003 4,980 Treasury Stock (831) (808) Retained Earnings 11,406 10,582 Accumulated Other Comprehensive Loss (489) (377)

Total Stockholders’ Equity 15,089 14,377

Total Capitalization $ 31,312 $ 29,855

* Includes current portion of Long-Term Debt

Attachment 4

PUBLIC SERVICE ENTERPRISE GROUP INCORPORATEDCONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited, $ millions) Year Ended December 31, 2019 2018 CASH FLOWS FROM OPERATING ACTIVITIES Net Income $ 1,693 $ 1,438 Adjustments to Reconcile Net Income to Net Cash Flows From Operating Activities 1,686 1,475

NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES 3,379 2,913

NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES (3,145) (3,916)

NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES (257) 887

Net Change in Cash, Cash Equivalents and Restricted Cash (23) (116) Cash, Cash Equivalents and Restricted Cash at Beginning of Period 199 315

Cash, Cash Equivalents and Restricted Cash at End of Period $ 176 $ 199

Attachment 5

PUBLIC SERVICE ELECTRIC & GAS COMPANYRetail Sales(Unaudited)

December 31, 2019

Electric Sales

Three Months Change vs. Year Change vs. Sales (millions kWh) Ended 2018 Ended 2018 Residential 2,792 (4%) 13,356 (3%) Commercial & Industrial 6,438 (4%) 26,995 (3%) Other 100 (9%) 343 (3%)

Total 9,330 (4%) 40,694 (3%)

Weather Data THI Hours - Actual 476 (47%) 17,721 (12%) THI Hours - Normal 372 16,583

Gas Sold and Transported

Three Months Change vs. Year Change vs. Sales (millions therms)* Ended 2018 Ended 2018 Firm Sales Residential Sales 477 (2%) 1,504 (2%) Commercial & Industrial 316 (2%) 1,085 (1%)

Total Firm Sales 793 (2%) 2,589 (2%)

Non-Firm Sales Commercial & Industrial 295 (4%) 1,281 2%

Total Non-Firm Sales 295 1,281

Total Sales 1,088 (3%) 3,870 0%

Weather Data Degree Days - Actual 1,664 (2%) 4,662 (2%) Degree Days - Normal 1,575 4,600

* CSG rate included in non-firm sales

Attachment 6

PSEG POWER LLCGeneration Measures(1)

(Unaudited)

GWhr Breakdown GWhr Breakdown

Three Months Ended

December 31, Year Ended December 31,

2019 2018 2019 2018 Nuclear - NJ 4,414 5,029 19,009 20,394 Nuclear - PA 2,602 2,458 11,147 10,837

Total Nuclear 7,016 7,487 30,156 31,231 Fossil - Natural Gas - NJ 3,065 3,195 11,591 11,525 Fossil - Natural Gas - NY 1,239 1,135 4,544 5,142 Fossil - Natural Gas - MD 1,173 974 4,661 2,190 Fossil - Natural Gas - CT 858 (4) 2,043 32

Total Natural Gas(2) 6,335 5,300 22,839 18,889 Fossil - Coal (6) 1,436 3,861 5,743

13,345 14,223 56,856 55,863

% Generation by Fuel Type % Generation by Fuel Type

Three Months Ended


2019 2018 2019 2018 Nuclear - NJ 33% 35% 33% 37% Nuclear - PA 19% 17% 20% 19%

Total Nuclear 52% 52% 53% 56% Fossil - Natural Gas - NJ 23% 22% 20% 21% Fossil - Natural Gas - NY 9% 8% 8% 9% Fossil - Natural Gas - MD 9% 7% 8% 4% Fossil - Natural Gas - CT 7% 0% 4% 0%

Total Natural Gas(2) 48% 37% 40% 34% Fossil - Coal 0% 11% 7% 10%

100% 100% 100% 100%

(1) Excludes Solar, Kalaeloa and pumped storage.(2) Includes several units that are dual fuel for oil.

Attachment 7

PUBLIC SERVICE ENTERPRISE GROUP INCORPORATEDStatistical Measures

(Unaudited)

Three Months Ended December 31, Year Ended December 31, 2019 2018 2019 2018 Weighted Average Common Shares Outstanding (millions)

Basic 504 504 504 504 Diluted 507 508 507 507

Stock Price at End of Period $ 59.05 $ 52.05 Dividends Paid per Share of Common Stock $ 0.47 $ 0.45 $ 1.88 $ 1.80 Dividend Yield 3.2% 3.5% Book Value per Common Share $ 29.94 $ 28.53 Market Price as a Percent of Book Value 197% 182%

Attachment 8

PUBLIC SERVICE ENTERPRISE GROUP INCORPORATEDConsolidated Operating Earnings (non-GAAP) Reconciliation

Reconciling Items

Three Months Ended December 31,

Year Ended December 31,

2019 2018 2019 2018 ($ millions, Unaudited) Net Income $ 437 $ 199 $1,693 $1,438

(Gain) Loss on Nuclear Decommissioning Trust (NDT) Fund Related Activity, pre-tax (PSEG Power) (91) 172 (255) 144 (Gain) Loss on Mark-to-Market (MTM), pre-tax (a) (PSEG Power) (90) 35 (285) 117 Plant Retirements and Dispositions, pre-tax (PSEG Power) — (54) 402 (51) Lease Related Activity, pre-tax (PSEG Enterprise/Other) — (12) 58 8 Goodwill Impairment, pre-tax (PSEG Power) 16 — 16 — Income Taxes related to Operating Earnings (non-GAAP) reconciling items(b) 58 (56) 37 (74)

Operating Earnings (non-GAAP) $ 330 $ 284 $1,666 $1,582

PSEG Fully Diluted Average Shares Outstanding (in millions) 507 508 507 507

($ Per Share Impact - Diluted, Unaudited)

Net Income $ 0.86 $ 0.39 $ 3.33 $ 2.83 (Gain) Loss on NDT Fund Related Activity, pre-tax (PSEG Power) (0.18) 0.33 (0.50) 0.28 (Gain) Loss on MTM, pre-tax (a) (PSEG Power) (0.18) 0.07 (0.56) 0.23 Plant Retirements and Dispositions, pre-tax (PSEG Power) — (0.11) 0.79 (0.10) Lease Related Activity, pre-tax (PSEG Enterprise/Other) — (0.01) 0.11 0.02 Goodwill Impairment, pre-tax (PSEG Power) 0.03 — 0.03 — Income Taxes related to Operating Earnings (non-GAAP) reconciling items(b) 0.11 (0.11) 0.08 (0.14)

Operating Earnings (non-GAAP) $ 0.64 $ 0.56 $ 3.28 $ 3.12

(a) Includes the financial impact from positions with forward delivery months.(b) Income tax effect calculated at the statutory rate except for lease related activity which is calculated at a combined leveraged lease effective tax rate

and NDT related activity which is calculated at the statutory rate plus a 20% tax on income (losses) from qualified NDT funds.

Attachment 9

PSEG Power Operating Earnings (non-GAAP) and Adjusted EBITDA (non-GAAP) Reconciliation

Reconciling Items Three Months Ended


2019 2018 2019 2018 ($ millions, Unaudited) Net Income (Loss) $ 159 $ (35) $ 468 $ 365

(Gain) Loss on NDT Fund Related Activity, pre-tax (91) 172 (255) 144 (Gain) Loss on MTM, pre-tax (a) (90) 35 (285) 117 Plant Retirements and Dispositions, pre-tax — (54) 402 (51) Goodwill Impairment, pre-tax 16 — 16 — Income Taxes related to Operating Earnings (non-GAAP) reconciling items(b) 58 (61) 63 (73)

Operating Earnings (non-GAAP) $ 52 $ 57 $ 409 $ 502 Depreciation and Amortization, pre-tax (c) 94 93 372 346 Interest Expense, pre-tax (c) (d) 34 26 114 72 Income Taxes (c) 18 — 140 139

Adjusted EBITDA (non-GAAP) $ 198 $ 176 $1,035 $1,059


(a) Includes the financial impact from positions with forward delivery months.(b) Income tax effect calculated at the statutory rate except for NDT related activity which is calculated at the statutory rate plus a 20% tax on income

(losses) from qualified NDT funds.(c) Excludes amounts related to Operating Earnings (non-GAAP) reconciling items.(d) Net of capitalized interest.

PSEG Enterprise/OtherOperating Earnings (non-GAAP) Reconciliation

Reconciling Items

Three Months Ended December 31,

Year Ended December 31,

2019 2018 2019 2018 ($ millions, Unaudited) Net Income (Loss) $ 2 $ (5) $ (25) $ 6

Lease Related Activity, pre-tax — (12) 58 8 Income Taxes related to Lease related activity(a) — 5 (26) (1)

Operating Earnings (non-GAAP) $ 2 $ (12) $ 7 $ 13


(a) Income tax effect calculated at a combined leveraged lease effective tax rate.

Public Service Enterprise Group

PSEG Earnings Conference Call4th Quarter & Full Year 2019

February 26, 2020

EXHIBIT 99.1

Certain of the matters discussed in this presentation about our and our subsidiaries’ future performance, including, without limitation, future revenues, earnings, strategies, prospects,consequences and all other statements that are not purely historical constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Suchforward-looking statements are subject to risks and uncertainties, which could cause actual results to differ materially from those anticipated. Such statements are based on management’sbeliefs as well as assumptions made by and information currently available to management. When used herein, the words “anticipate,” “intend,” “estimate,” “believe,” “expect,” “plan,”“should,” “hypothetical,” “potential,” “forecast,” “project,” variations of such words and similar expressions are intended to identify forward-looking statements. Factors that may cause actualresults to differ are often presented with the forward-looking statements themselves. Other factors that could cause actual results to differ materially from those contemplated in any forward-looking statements made by us herein are discussed in filings we make with the United States Securities and Exchange Commission (SEC), including our Annual Report on Form 10-K andsubsequent reports on Form 10-Q and Form 8-K. These factors include, but are not limited to:• fluctuations in wholesale power and natural gas markets, including the potential impacts on the economic viability of our generation units;• our ability to obtain adequate fuel supply;• market risks impacting the operation of our generating stations;• increases in competition in wholesale energy and capacity markets;• changes in technology related to energy generation, distribution and consumption and customer usage patterns;• economic downturns;• third-party credit risk relating to our sale of generation output and purchase of fuel;• adverse performance of our nuclear decommissioning and defined benefit plan trust fund investments and changes in funding requirements;• the impact of changes in state and federal legislation and regulations on our business, including PSE&G’s ability to recover costs and earn returns on authorized investments;• PSE&G’s proposed investment programs may not be fully approved by regulators and its capital investment may be lower than planned;• the impact on our New Jersey nuclear plants if such plants are not awarded Zero Emission Certificates (ZEC) in future periods, there is an adverse change in the amount of future ZEC

payments, the ZEC program is overturned or modified through legal proceedings or if adverse changes are made to the capacity market construct;• adverse changes in energy industry laws, policies and regulations, including market structures and transmission planning;• the impact of state and federal actions aimed at combating climate change on our natural gas assets;• risks associated with our ownership and operation of nuclear facilities, including regulatory risks, such as compliance with the Atomic Energy Act and trade control, environmental and

other regulations, as well as financial, environmental and health and safety risks;• changes in federal and state environmental regulations and enforcement;• delays in receipt of, or an inability to receive, necessary licenses and permits;• the impact of any future rate proceedings;• adverse outcomes of any legal, regulatory or other proceeding, settlement, investigation or claim applicable to us and/or the energy industry;• changes in tax laws and regulations;• the impact of our holding company structure on our ability to meet our corporate funding needs, service debt and pay dividends;• lack of growth or slower growth in the number of customers or changes in customer demand;• any inability of PSEG Power to meet its commitments under forward sale obligations;• reliance on transmission facilities that we do not own or control and the impact on our ability to maintain adequate transmission capacity;• any inability to successfully develop, obtain regulatory approval for, or construct generation, transmission and distribution projects;• any equipment failures, accidents, severe weather events or other incidents that impact our ability to provide safe and reliable service to our customers;• our inability to exercise control over the operations of generation facilities in which we do not maintain a controlling interest;• any inability to recover the carrying amount of our long-lived assets and leveraged leases;• any inability to maintain sufficient liquidity;• any inability to realize anticipated tax benefits or retain tax credits;• challenges associated with recruitment and/or retention of key executives and a qualified workforce;• the impact of our covenants in our debt instruments on our operations; and• the impact of acts of terrorism, cybersecurity attacks or intrusions.

All of the forward-looking statements made in this presentation are qualified by these cautionary statements and we cannot assure you that the results or developments anticipated bymanagement will be realized or even if realized, will have the expected consequences to, or effects on, us or our business, prospects, financial condition, results of operations orcash flows. Readers are cautioned not to place undue reliance on these forward-looking statements in making any investment decision. Forward-looking statements made in thispresentation apply only as of the date of this presentation. While we may elect to update forward-looking statements from time to time, we specifically disclaim any obligation to do so,even in light of new information or future events, unless otherwise required by applicable securities laws.

The forward-looking statements contained in this presentation are intended to qualify for the safe harbor provisions of Section 27A of the Securities Act of 1933, as amended, andSection 21E of the Securities Exchange Act of 1934, as amended.

Forward-Looking Statements

2

PSEG presents Operating Earnings and Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) inaddition to its Net Income reported in accordance with accounting principles generally accepted in the United States (GAAP).Operating Earnings and Adjusted EBITDA are non-GAAP financial measures that differ from Net Income. Non-GAAP OperatingEarnings exclude the impact of returns (losses) associated with the Nuclear Decommissioning Trust (NDT), Mark-to-Market (MTM)accounting and material one-time items. Non-GAAP Adjusted EBITDA excludes the same items as our non-GAAP OperatingEarnings measure as well as income tax expense, interest expense and depreciation and amortization. The last two slides in thispresentation (Slides A and B) include a list of items excluded from Net Income/(Loss) to reconcile to non-GAAP Operating Earningsand non-GAAP Adjusted EBITDA with a reference to those slides included on each of the slides where the non-GAAP informationappears.

Management uses non-GAAP Operating Earnings in its internal analysis, and in communications with investors and analysts, as aconsistent measure for comparing PSEG’s financial performance to previous financial results. Management believes non-GAAPAdjusted EBITDA is useful to investors and other users of our financial statements in evaluating operating performance because itprovides them with an additional tool to compare business performance across companies and across periods. Management alsobelieves that non-GAAP Adjusted EBITDA is widely used by investors to measure operating performance without regard to itemssuch as income tax expense, interest expense and depreciation and amortization, which can vary substantially from company tocompany depending upon, among other things, the book value of assets, capital structure and whether assets were constructed oracquired. Non-GAAP Adjusted EBITDA also allows investors and other users to assess the underlying financial performance of ourfleet before management’s decision to deploy capital. The presentation of non-GAAP Operating Earnings and non-GAAP AdjustedEBITDA is intended to complement, and should not be considered an alternative to, the presentation of Net Income/(Loss), which isan indicator of financial performance determined in accordance with GAAP. In addition, non-GAAP Operating Earnings and non-GAAP Adjusted EBITDA as presented in this release may not be comparable to similarly titled measures used by other companies.

Due to the forward looking nature of non-GAAP Operating Earnings and non-GAAP Adjusted EBITDA guidance, PSEG is unable toreconcile these non-GAAP financial measures to the most directly comparable GAAP financial measure. Management is unable toproject certain reconciling items, in particular MTM and NDT gains (losses), for future periods due to market volatility.

GAAP Disclaimer

These materials and other financial releases can be found on the PSEG website at https://investor.pseg.com. From time to time, PSEG, PSE&G and PSEG Powerrelease important information via postings on their corporate website at https://investor.pseg.com. Investors and other interested parties are encouraged tovisit the corporate website to review new postings. The “Email Alerts” link at https://investor.pseg.com may be used to enroll to receive automatic email alertsregarding new postings.

3

PSEG2019 Q4 and Full Year Review

Ralph IzzoChairman, President and Chief Executive Officer

PSEG Q4 and Full Year 2019Fourth Quarter and Full Year Highlights

Net Income per share of $0.86 in Q4 2019 vs. $0.39 in Q4 2018;Full year Net Income per share of $3.33 in 2019 vs. $2.83 in 2018

Non-GAAP Operating Earnings* per share of $0.64 in Q4 2019 vs. $0.56 in Q4 2018;Full year, non-GAAP Operating Earnings* per share of $3.28 in 2019 vs. $3.12 in 2018

PSE&G results benefited from ongoing investment in utility infrastructure and rate relief

PSEG Power results impacted by lower capacity revenues partly offset byZero Emission Certificate (ZEC) revenues and cost control

Operational Excellence

PSE&G named most reliable electric utility in the Mid-Atlantic region for the 18 year in a row

Disciplined Capital InvestmentPSEG invested $3.1 billion in 2019: $2.7 billion at PSE&G covering completion of both Energy Strong(ES) and Gas System Modernization Program (GSMP), and beginning of the second phase of bothprograms

NJ Board of Public Utilities (NJBPU) approved extension of the Clean Energy Future (CEF) – EnergyEfficiency (EE) procedural schedule through September 2020 and the extension of several existingprograms in the amount of $111 million

NJBPU lifted statewide moratorium on Advanced Metering Infrastructure (AMI)

NJBPU Staff proposed procedural schedules for $600 million CEF– Energy Cloud (EC/AMI),$300 million CEF – Electric Vehicles (EV), and $100 million CEF – Energy Storage (ES)

*See Slides A and B for Items excluded from Net Income/(Loss) to reconcile to Operating Earnings (non-GAAP).5

th

PSEG Q4 Results Summary

Quarter ended December 31

$ millions (except EPS) 2019 2018

Net Income $ 437 $ 199

Reconciling Items (107) 85

Operating Earnings (non-GAAP)* $ 330 $ 284

EPS from Net Income $ 0.86 $ 0.39

EPS from Operating Earnings (non-GAAP)* $ 0.64 $ 0.56

*See Slide A for Items excluded from Net Income to reconcile to Operating Earnings (non-GAAP).6

PSEG Full Year Results

Twelve Months ended December 31

$ millions (except EPS) 2019 2018

Net Income $ 1,693 $ 1,438

Reconciling Items (27) 144

Operating Earnings (non-GAAP)* $ 1,666 $ 1,582

EPS from Net Income $ 3.33 $ 2.83

EPS from Operating Earnings (non-GAAP)* $ 3.28 $ 3.12

*See Slide A for Items excluded from Net Income to reconcile to Operating Earnings (non-GAAP).7

PSEG - Regulatory and Policy ObjectivesPSEG’s Priorities Aligned with New Jersey’s Clean Energy Agenda

NJBPU approved agreement to extend CEF-EE procedural schedule to the end of September 2020 tocomplete its review; investment in existing programs extended in the interim by $111 millionBPU staff proposed schedules for the consideration of CEF–EC (AMI), EV and ES: Proceduralschedules have been proposed for $1 billion of investmentsNJBPU finalized the Energy Master Plan in January 2020PSEG continuing due diligence and negotiations toward a Joint Venture agreement topotentially acquire a 25% equity interest in Ørsted’s 1,100 MW Ocean Wind project

PSEG Powering ProgressIn line with PSEG Power’s goal to reduce CO2 emissions 80% by 2046 from 2005 levels, Keystone/Conemaugh sale creates path to complete exit of coal units from PSEG Power fleet by mid-2021One of the lowest carbon emissions intensity rates of the nation’s largest power producers, according tothe report, “Benchmarking Air Emissions of the 100 Largest Electric Power Producers in the UnitedStates,” released by M.J. Bradley & AssociatesPSE&G Gas System Modernization Programs reduced annual methane emissions by approximately40,000 metric tons of CO2 equivalent during 2019PSEG named to Dow Jones Sustainability Index – North America for the 12

thconsecutive year

FERC/PJM/Wholesale Market Reforms PendingPJM compliance filing to FERC Capacity Order expected March 18

th

Fast start pricing proceeding currently held in abeyance by FERC to allow PJM to address dispatchand pricing misalignment concerns via its stakeholder process 8

Ongoing investment in PSE&G Transmission and Distribution infrastructuredrives PSEG earnings growth; midpoint of guidance +4% over 2019

Non-GAAP Operating Earnings* Contribution by Subsidiary2019 Actual and 2020E Guidance

*See Slides A and B for Items excluded from Net Income/(Loss) to reconcile to Operating Earnings (non-GAAP).**Based on the mid-point of 2020 non-GAAPOperating Earnings guidanceof $3.30 - $3.50 per share. E = Estimate.

2019 2020E**PSE&G PSEG Power PSEG Enterprise/Other

$3.28 $3.30 - $3.50E

PSE&Gexpected to

approach80% of 2020

OperatingEarningsGuidance

PSEG – Introducing 2020 Guidance

9

$1.56$1.64

$1.72$1.80

$1.88$1.96

$1.00

$1.20

$1.40

$1.60

$1.80

$2.00

2015 2016 2017 2018 2019 2020E

PSEG Indicative Annual Dividend – Increased $0.08 to $1.96 per share

Payout Ratio 54% 57% 59% 58% 57% 58%**

Building on a 113-year history of returning cash to our shareholdersand maintaining financial flexibility

PSEG Annual Dividend Rate

5 year rate of compound annual growth: 4.7%

10

*

*Indicative annual 2020 PSEG common dividend rate per share. E=Estimate.**2020E Payout Ratio reflects the indicative annual dividend rate divided by the mid-point of 2020 non-GAAP operating earnings guidance of $3.30 - $3.50 per share. Note: All future decisions regarding dividends on the common stock are subject to approval by the Board of Directors.

PSEG2019 Q4 Operating Company Review

Dan CreggEVP and Chief Financial Officer

PSEG – Q4 Results by Subsidiary

Net Income / (Loss) 2019 2018 Change

PSE&G $ 0.54 $ 0.47 $ 0.07

PSEG Power $ 0.32 $ (0.07) $ 0.39

PSEG Enterprise/Other $ -. $ (0.01) $ 0.01

Total PSEG $ 0.86 $ 0.39 $ 0.47

Non-GAAP Operating Earnings* 2019 2018 Change

PSE&G $ 0.54 $ 0.47 $ 0.07

PSEG Power $ 0.10 $ 0.11 $ (0.01)

PSEG Enterprise/Other $ -. $ (0.02) $ 0.02

Total PSEG* $ 0.64 $ 0.56 $ 0.08

*See Slides A and B for Items excluded from Net Income/(Loss) to reconcile to Operating Earnings (non-GAAP) for PSEG, PSEG Power and PSEG Enterprise/Other.

PSEG Q4 EPS Summary – Quarter ended December 31

12

$0.39

$0.56

$0.64

$0.86

0.07 (0.01) 0.02

$0.00

$0.15

$0.30

$0.45

$0.60

$0.75

$0.90

Q4 2018Net Income

Q4 2018OperatingEarnings

(non-GAAP)*

PSE&G PSEG Power PSEGEnterprise/

Other

Q4 2019OperatingEarnings

(non-GAAP)*

Q4 2019Net Income

PSEG EPS Reconciliation – Q4 2019 versus Q4 2018

ZECs 0.06

Capacity (0.11)

Re-contracting,Lower Cost to Serve

0.02

Volume (0.02)

O&M 0.03

Taxes & Other 0.01

Transmission 0.04

Gas Margin 0.02

Distribution O&M0.02

Distribution Depreciation & Interest

(0.02)

DistributionNon-OperatingPension/OPEB

0.03

DistributionTaxes & Other (0.02)

LowerTaxes

*See Slide A for Items excluded from Net Income to reconcile to Operating Earnings (non-GAAP). 13

PSEG – Full Year Results by Subsidiary

Net Income/(Loss) 2019 2018 Change

PSE&G $ 2.46 $ 2.10 $ 0.36

PSEG Power $ 0.93 $ 0.72 $ 0.21

PSEG Enterprise/Other $ (0.06) $ 0.01 $ (0.07)

Total PSEG $ 3.33 $ 2.83 $ 0.50

Non-GAAP Operating Earnings* 2019 2018 Change

PSE&G $ 2.46 $ 2.10 $ 0.36

PSEG Power $ 0.81 $ 0.99 $ (0.18)

PSEG Enterprise/Other $ 0.01 $ 0.03 $ (0.02)

Total PSEG* $ 3.28 $ 3.12 $ 0.16

*See Slides A and B for Items excluded from Net Income/(Loss) to reconcile to Operating Earnings (non-GAAP) for PSEG, PSEG Power and PSEG Enterprise/Other.

PSEG Full Year EPS Summary – Twelve Months ended December 31

14

$2.83

$3.12$3.28 $3.33

0.36 (0.18)(0.02)

$0.00

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

$3.50

FY 2018Net Income

FY 2018OperatingEarnings

(non-GAAP)*

PSE&G PSEG Power PSEGEnterprise/

Other

FY 2019OperatingEarnings

(non-GAAP)*

FY 2019Net Income

PSEG EPS Reconciliation – FY 2019 versus FY 2018

ZECs 0.18

Capacity (0.17)

Re-contracting,Lower Cost toServe (0.09)

Volume (0.01)

Gas Operations (0.04)

O&M 0.04

Depreciation (0.04)

Interest Expense (0.05)

Transmission 0.17

Gas Margin 0.16

Electric Margin 0.04

Weather (0.02)

Distribution O&M 0.03

Distribution Depreciation & Interest

(0.08)

DistributionNon-OperatingPension/OPEB

0.08

DistributionTaxes & Other (0.02)

Interest Expensepartially offset by

Lower Taxes

*See Slide A for Items excluded from Net Income to reconcile to Operating Earnings (non-GAAP). 15

PSE&G2019 Q4 Review

$0.47

$0.540.06 0.01

$0.00

$0.10

$0.20

$0.30

$0.40

$0.50

$0.60

Q4 2018Net

Income

Q4 2019Net

Income

PSE&G EPS Reconciliation – Q4 2019 versus Q4 2018

Transmission 0.04

Gas Margin 0.02

Distribution O&M0.02

DistributionDepreciation & Interest

(0.02)

DistributionNon-Operating

Pension/OPEB 0.03

DistributionTaxes & Other

(0.02)

17

178

650

836

288

628

786

240

511

824

0

200

400

600

800

1,000

October November December

2019 2018 normal

Q4 2019 vs. Q4 2018 vs. NormalMonthly Heating Degree Days (HDD)

Q4 2019 winter weather, as defined byheating degree days, was ~2% warmer

than Q4 2018 and ~6% colder than normal

4,600

4,770

4,662

2,000 3,000 4,000 5,000

2019

2018normal

Winter Weather Summary (HDD)FY 2019 vs. FY 2018 vs. Normal

16,583

20,073

17,721

5,000 10,000 15,000 20,000

2019

2018normal

Summer Weather Summary (THI)FY 2019 vs. FY 2018 vs. Normal

FY 2019 winter weather was ~2% warmerthan 2018 and ~1% colder than normal

FY 2019 summer weather was ~12% coolerthan 2018 and ~7% warmer than normal

18

PSE&G – Q4 & Full Year Weather Summary

0

500

1,000

1,500

2,000

2,500

3,000

3,500

2020E 2021E 2022E 2023E 2024E

Transmission Electric Distribution Gas Distribution Clean Energy

PSE&G’s capital program of $11.5 billion to $15 billion focused onreliability, resiliency, grid modernization and clean energy investments

CEF: EE, EC,EV & ES

PSE&G Capital Spending2020E – 2024E

Includes AFUDC Debt. Green hashed portion of the chart represents CEFfilings to reflect a one year delay in discussions; no change to total filing position.Purple hashed portion of the chart represents the identified IIP Extension programs (GSMP III and ES III) E = Estimate.

~90% of investmentreceiving contemporaneousor near-contemporaneous

regulatory treatment

19

IdentifiedInfrastructure

Investment Program(IIP) Extensions

(ES III & GSMP III)

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

2019 2020E 2021E 2022E 2023E 2024E

Transmission Electric Distribution Gas Distribution Clean Energy

8.0% -

Green hashed portion of the chart represents revised CEF filings to reflect a one year delay in discussions; no change to total filing position.Purple hashed portion of the chart represents the identified IIP Extension programs (GSMP III and ES III) E = Estimate.Chart excludes CWIP.Year-end 2019 CWIP balance was $1.6 B.

CEF

PSE&G Year-End Rate Base2019 – 2024E

Investment program provides opportunity for ~ 6.5% to 8%compound annual growth in rate base

6.5% -Identified IIPExtensions

20

PSE&G – Q4 Highlights

FERC formula rates placed into effect January 1; completed return of additional tax reform benefits tocustomers in 2019Agreement reached to extend CEF-EE procedural schedule to September 2020NJBPU proposed procedural schedules for CEF-EC/AMI, CEF-EV and CEF-ES2019 Energy Master Plan finalized in January, broadly supporting NJ’s clean energy initiatives

Operations

PSE&G invested $2.7 billion in 2019 completing first phase of ES and GSMP and beginning second phaseof both programsPSE&G’s Q4 2019 earnings increased by $0.07 per share, or ~15%, over Q4 2018PSE&G 2020 earnings guidance is $1,310 million to $1,370 millionConsolidated rate base grew by 6% to over $20 billion at year-end 2019

Financial

Completed replacement of approximately 230 miles of gas main and 16,000 services during 2019, annualmethane emissions reduced by approximately 40,000 metric tons ofWeather-normalized electric and gas sales were each ~1% lower for the yearResidential customer growth continues to be just under 1% per yearPSE&G named most reliable electric utility in the Mid-Atlantic region by PA Consulting for 18 year in a row

21

Regulatory and Market Environment

th

CO2equivalent

PSEG Power2019 Q4 Review

PSEG Power EPS Reconciliation – Q4 2019 versus Q4 2018

($0.07)

$0.11$0.10(0.05) 0.04

~~

Q4 2018Net Loss

Q4 2018Operating Earnings

(non-GAAP)*

Q4 2019Net

Income

Q4 2019Operating Earnings

(non-GAAP)*

ZECs 0.06

Capacity (0.11)

Re-contracting,Lower Cost to Serve

0.02

Volume (0.02)

O&M 0.03

Taxes & Other 0.01

*See Slide B for Items excluded from Net Income/(Loss) to reconcile to Operating Earnings (non-GAAP).

$0.35$0.32

23

7,487 7,016

1,436

5,300

6,335

0

2,500

5,000

7,500

10,000

12,500

15,000

2018 2019

(6)

PSEG Power – Q4 Generation Measures

Total Nuclear Total Coal**** Natural Gas & Oil

*Excludes Solar, Kalaeloa and pumped storage.

**Excludes peaking and steam generation.

***Includes Oil Fuel Costs of $1 million in 2018 and 2019.

****PSEGPower completed the sale of its ownership interests in Keystone and Conemaugh generation, labeled as PA Coal in the Capacity Factor table, in September 2019.

PSEG Power – Generation (GWh)*

14,22313,345

PSEG Power – Capacity Factors (%)*

Quarter endedDecember 31

($ millions) 2018 2019

Gas*** $ 125 $ 135

Coal 34 -

Total Fossil 159 135

Nuclear 44 41

Total FuelCost $ 203 $ 176

TotalGeneration

(GWh)*14,223 13,345

$ / MWh 14.27 13.19

PSEG Power – Fuel Costs*

Quarter endedDecember 31

2018 2019

CombinedCycle** 50.6% 54.8%

Coal

PA 79.9% 0.0%

CT 9.2% 0.0%Nuclear 86.9% 81.9%

24

31,231 30,156

5,7433,861

18,889 22,839

0

10,000

20,000

30,000

40,000

50,000

60,000

2018 2019

Twelve Monthsended December 31

2018 2019

CombinedCycle** 52.0% 52.2%

Coal

PA 80.1% 75.4%

CT 9.9% 1.6%Nuclear 91.4% 88.7%

PSEG Power – Full Year Generation Measures

Total Nuclear Total Coal**** Natural Gas & Oil

*Excludes Solar, Kalaeloa and pumped storage.

**Excludes peaking and steam generation.

***Includes Oil Fuel Costs of $29 million and $5 million in 2018 and 2019, respectively.

****PSEG Power completed the sale of its ownership interests in Keystone and Conemaugh generation, labeled as PA Coal in the Capacity Factor table, in September 2019.

PSEG Power – Generation (GWh)*

55,863 56,856

PSEG Power – Capacity Factors (%)*

Twelve Monthsended December 31

($ millions) 2018 2019

Gas*** $ 450 $ 531

Coal 140 78

Total Fossil 590 609

Nuclear 187 178

Total FuelCost $ 777 $ 787

TotalGeneration

(GWh)*55,863 56,856

$ / MWh 13.91 13.84

PSEG Power – Fuel Costs*

25

PSEG Power – Gross Margin PerformanceZEC revenues earned for full fourth quarter

A scheduled decline in capacity revenues from June 2019 through May 2020;ISO-NE lower capacity prices were partially offset by addition of Bridgeport Harbor 5

Lower cost to serve partially offset re-contracting at lower market prices

Lower generation volumes related to sale of Keystone and Conemaugh

Regional Performance

RegionQ4 Gross

Margin ($M) Q4 2019 Performance

PJM $360

Lower capacity revenues, re-contracting at lower market prices,lower volumes from sale of Keystoneand Conemaugh and lower sparkspreads partially offset by ZECrevenues and lower cost to serve

NewEngland $41

Higher volume from new CCGTgeneration partially offset by lower market prices

New York $13 Lower market prices partially offsetby higher demand

PSEG Power Gross Margin ($/MWh)

$38

$31 $31

$0

$10

$20

$30

$40

$50

2017 2018 2019

Quarter ended December 31

$38$33 $32

$0

$10

$20

$30

$40

$50

2017 2018 2019

Twelve months endedDecember 31

26

Hedging Update Contracted Energy*

27

2020 2021 2022

Nuclear

Volume TWh 31 31 31

% Hedged 100% 80-85% 30-35%

Price $/MWh $37 $36 $36

Combined Cycle

Volume TWh 19-21 19-21 19-21

% Hedged 70-75% 0% 0%

Price $/MWh $37 $ - $ -

Total

Volume TWh 50-52 50-52 50-52

% Hedged 85-90% 45-50% 20-25%

Price $/MWh $37 $36 $36*Hedge percentages and prices as of February 5, 2020 and reflect revenues of full requirement load deals based on contract price including renewable energy credits, ancillary and transmission components but excluding capacity. Hedges include positions with MTM accounting treatment and options.

PSEG Power – Q4 Highlights

Q4 total output down ~6% primarily due to sale of Keystone and Conemaugh vs Q4 2018Nuclear fleet achieved a capacity factor of 81.9% in Q4 and 88.7% for full-year 2019CCGT fleet achieved ~55% capacity factor in Q4; new units operated at capacity factors > 65%Nuclear fleet produced 7.0 TWh, down ~6% due to extended Hope Creek refueling outage; CCGT fleetproduced 6.3 TWh of output

Operations

Regulatory and Market Environment

Financial

New Jersey re-joined the Regional Greenhouse Gas Initiative effective January 1, 2020; Affectedgenerating units must purchase one allowance for every ton of emittedPJM Compliance Filing to FERC Order regarding PJM Reliability Pricing Model auction due March 18BGS load for 2020 projected at ~8 TWh2020 anticipated base load output hedged at an average price ~$1/MWh lower than 2019

PSEG Power’s total debt as a percentage of capitalization was 33% at December 31PSEG Power’s 2020 guidance range for non-GAAP Operating Earnings is $345 million to $435 million;non-GAAP Adjusted EBITDA guidance is $950 million to $1,050 million

28

CO2th

PSEG 2020 Guidance - By Subsidiary

$ millions (except EPS) 2020E 2019

PSE&G (Net Income) $1,310 - $1,370 $1,250

PSEG Power $345 - $435 $409

PSEG Enterprise/Other ($5) $7

Operating Earnings (non-GAAP)* $1,675 - $1,775 $1,666

Operating EPS (non-GAAP)* $3.30 - $3.50 $3.28

Segment Operating Earnings Guidance and Prior Year Results(non-GAAP, except as noted)*

$ millions 2020E 2019PSEG Power $950 - $1,050 $1,035

PSEG Power Adjusted EBITDA (non-GAAP)*

*See Slide A for Items excluded from Net Income to reconcile to Operating Earnings (non-GAAP) for PSEG and Slide B for Items excluded from Net Income/(Loss) toreconcile to Operating Earnings (non-GAAP) and Adjusted EBITDA (non-GAAP) for PSEG Power and PSEG Enterprise/Other. E = Estimate.

30

Guidance ranges are modestly wider to allow for variability by businessthat is often offset in consolidated results

PSEG Financial Highlights

Business mix anticipates PSE&G contribution approaches 80% of Operating Earnings in 2020

PSEG’s 5-year capital spending forecast of $12 - $16 billion, with over 90% directed at PSE&G,expected to produce ~6.5% - 8% compound annual growth in rate base over 2020 - 2024

Hope Creek and Salem 1 and Salem 2 earn full year of ZECs in 2020

Increased 2020 indicative annual common dividend by $0.08 to $1.96 per share

Financial position remains strong:PSEG continues to be a net beneficiary from tax reform

Cash from PSEG Power and increasing cash from operations at PSE&G fund2020 - 2024 capital spending program and support opportunity for dividend growthwithout the need to issue equity

Debt as a percentage of capitalization was 52% at December 31

PSEG credit measures remain strong

31

Initiating 2020 non-GAAP Operating Earnings guidance of $3.30 - $3.50 per share, up ~4%over 2019 mid-point of guidance

PSEG Liquidity as of December 31, 2019

32

Expiration Total AvailableCompany Facility Date Facility Usage Liquidity

($ Millions)

PSE&G 5-year Credit Facility Mar-23 $600 (A) $379 $221

PSEG Money PoolPSEG / PSEG Power 5-year Credit Facilities (PSEG) Mar-23 $1,500 (B) $796 $704

5-year Credit Facilities (PSEG Power) Mar-23 $1,900 (C) $40 $1,8603-year LC Facilities (PSEG Power) Sep-21 $200 $121 $79

Total Money Pool $3,600 $957 $2,643

Total $4,200 $1,336 $2,864

(A) PSE&G facility will be reduced by $4 million in March 2022. $50

(B) PSEG facilities will be reduced by $9 million in March 2022. PSE&G ST Investment $0

(C) PSEG Power facilities will be reduced by $12 million in March 2022. Total Liquidity Available $2,914

PSEG Money Pool ST Investment

Reconciliation of Non-GAAP Operating Earnings

Please see Slide 3 for an explanation of PSEG’s use of Operating Earnings as a non-GAAP financial measure and how it differs from Net Income.A

2019 2018 2019 2018

Net Income 437$ 199$ 1,693$ 1,438$ (Gain) Loss on Nuclear Decommissioning Trust (NDT)

Fund Related Activity, pre-tax (PSEG Power) (91) 172 (255) 144(Gain) Loss on Mark-to-Market (MTM), pre-tax(a) (PSEG Power) (90) 35 (285) 117Plant Retirements and Dispositions, pre-tax (PSEG Power) - (54) 402 (51)Lease Related Activity, pre-tax (PSEG Enterprise/Other) - (12) 58 8Goodwill Impairment, pre-tax (PSEG Power) 16 - 16 -Income Taxes related to Operating Earnings (non-GAAP) reconciling items (b) 58 (56) 37 (74)

Operating Earnings (non-GAAP) 330$ 284$ 1,666$ 1,582


Net Income 0.86$ 0.39$ 3.33$ 2.83$ (Gain) Loss on NDT Fund Related Activity, pre-tax (PSEG Power) (0.18) 0.33 (0.50) 0.28(Gain) Loss on MTM, pre-tax (a) (PSEG Power) (0.18) 0.07 (0.56) 0.23Plant Retirements and Dispositions, pre-tax (PSEG Power) - (0.11) 0.79 (0.10)Lease Related Activity, pre-tax (PSEG Enterprise/Other) - (0.01) 0.11 0.02Goodwill Impairment, pre-tax (PSEG Power) 0.03 - 0.03 -Income Taxes related to Operating Earnings (non-GAAP) reconciling items (b) 0.11 (0.11) 0.08 (0.14)

Operating Earnings (non-GAAP) 0.64$ 0.56$ 3.28$ 3.12$

December 31,Year Ended

December 31,

PUBLIC SERVICE ENTERPRISE GROUP INCORPORATEDConsolidated Operating Earnings (non-GAAP) Reconciliation

Three Months EndedReconciling Items

($ millions, Unaudited)

($ Per Share Impact - Diluted, Unaudited)

(a) Includes the financial impact from positions with forward delivery months.(b) Income tax effect calculated at the statutory rate except for lease related activity which is calculated at a combined leveraged lease effective tax rate and NDT related

activity which is calculated at the statutory rate plus a 20% tax on income (losses) from qualified NDT funds.

$

Reconciliation of Non-GAAP Operating Earnings and Non-GAAP Adjusted EBITDA

Please see Slide 3 for an explanation of PSEG’s use of Operating Earnings and Adjusted EBITDA as non-GAAP financial measures and how they differ from Net Income/(Loss).

(a) Income tax effect calculated at a combined leveraged lease effective tax rate.

(a) Includes the financial impact from positions with forward delivery months.(b) Income tax effect calculated at the statutory rate except for NDT related activity which is calculated at the statutory rate plus a 20% tax on income (losses) from

qualified NDT funds.(c) Excludes amounts related to Operating Earnings (non-GAAP) reconciling items.(d) Net of capitalized interest.

B

2019 2018 2019 2018

Net Income (Loss) 159$ (35)$ 468$ 365$ (Gain) Loss on NDT Fund Related Activity, pre-tax (91) 172 (255) 144(Gain) Loss on MTM, pre-tax(a) (90) 35 (285) 117Plant Retirements and Dispositions, pre-tax - (54) 402 (51)Goodwill Impairment, pre-tax 16 - 16 -Income Taxes related to Operating Earnings (non-GAAP) reconciling items(b) 58 (61) 63 (73)

Operating Earnings (non-GAAP) 52$ 57$ 409$ 502$ Depreciation and Amortization, pre-tax(c) 94 93 372 346Interest Expense, pre-tax(c) (d) 34 26 114 72Income Taxes(c) 18 - 140 139

Adjusted EBITDA (non-GAAP) 198$ 176$ 1,035$ 1,059$


PSEG Power Operating Earnings (non-GAAP) and Adjusted EBITDA (non-GAAP) ReconciliationThree Months Ended Year Ended

December 31,Reconciling Items December 31,


2019 2018 2019 2018

Net Income (Loss) 2$ (5)$ (25)$ 6$ Lease Related Activity, pre-tax - (12) 58 8Income Taxes related to Lease related activity (a) - 5 (26) (1)

Operating Earnings (non-GAAP) 2$ (12)$ 7$ 13$


December 31, December 31,


PSEG Enterprise/Other Operating Earnings (non-GAAP) Reconciliation

Reconciling ItemsThree Months Ended Year Ended

pseg power llc · slideshow presentation used during the earnings call is furnished as exhibit 99.1...

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