Ladies and gentlemen, thank you for standing by. My name is Shomali and I am your event operator today. I would like to welcome everyone to today's conference, Public Service Enterprise Group's first quarter 2026 earnings conference call and webcast. At this time, all participants are in a listen-only mode. Later, we will conduct a question and answer session for the members of the financial community. At that time, if you have a question, you will need to press the star and the number one on your telephone keypad. To withdraw your question, please press star and the number two. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded today, May 5, 2026, and will be available for replay as an audio webcast on PSEG's Investing Relations website at HTTPSInvested.pseg.com. I would now like to turn the conference over to Carlotta Chan. Please go ahead.

Good morning, and welcome to PSEG's first quarter 2026 earnings presentation. On today's call are Ralph LaRosa, Chair President and CEO, and Dan Craig, Executive Vice President and CFO. The press release attachments and slides for today's discussion are posted on our IR website at investor.pseg.com, and our 10-Q will be filed later today. PSEG's earnings release and other matters discussed during today's call contain forward-looking statements and estimates that are subject to various risks and uncertainties. We will also discuss non-GAAP operating earnings, which differs from net income, as reported in accordance with Generally Accepted Accounting Principles, or GAAP, in the United States. We include reconciliations of our non-GAAP financial measures and a disclaimer regarding forward-looking statements on our IR website and in today's materials. Following our prepared remarks, we will conduct a 30-minute question and answer session. I will now turn the call over to Ralph LaRosa.

please press the star and the number one on your telephone keypad. If your question has been answered and you wish to withdraw your polling request, you may do so by pressing the star and the number two. If you are on a speakerphone, please pick up your handset before entering your request. One moment, please, for the first question. And the first question comes from the line of Char Parisa with Wells Fargo. Please proceed with your question.

Hi, good morning, team. It's Constantine here for Char. Thanks for taking the questions. Oh, doing quite well. Thank you so much. Just maybe a quick one, starting on the BPU and the legislative process on utility constructs. Are the different branches finding their footing in terms of priorities? Is there anything in the cost-of-service model getting attention? Or, I guess, do the changes in ROE move the needle on affordability, or is there just a general recognition that the pressure is coming from the supply-demand that's really outside the state?

I totally agree with what you just said.

Great. Appreciate that. And just maybe shifting to the PGM capacity and reserve auction process, some of the PGM neighbors have been vocal around it. What could we see in terms of your participation in the RBA from both the power side and as the EDC? And any concerns around

capacity cost allocation for your zone? Yeah. I mean, Constantine, I just, you know, I don't just run we being the region. And Constantine, talk about cost allocation.

we're going to continue to look at for our, in this instance, like in the one that I'm referencing and that we talked about within the prepared room. And maybe just to clarify, do things like

the capacity price cap extension provide any additional upsides on the power side kind of

versus the six to eight plan? I think we have. Thanks so much for the time. Thank you. Our next

question comes from the line of Carly Davenport with Goldman Sachs. Please proceed with your

a question. Hey, Carly. Hey, good morning. Thanks so much for taking the questions. I knew it was going to be you, Carly, so I was going to say goodbye. Glad to make it easy for you. Maybe just starting on New Jersey, I guess we do have a stakeholder meeting being held by the BPU this week on Executive Order 1, kind of focused mostly on the kind of utility business model. I guess anything that you're expecting out of that meeting in terms of focus areas or kind of what you think is on the table to address as we think about the utility business model in New Jersey?

Yeah, look, I think we consistently –

Okay, great. That's helpful. And then maybe just sticking in New Jersey, but just on the nuclear side, I know you mentioned the lifting of the moratorium kind of in your prepared, and just maybe talk a little bit about how you envision Peg kind of participating on the nuclear task force in the state and maybe what some tangible updates could look like as we think about the opportunities around new nuclear in the state.

Yeah, we did, you know, this is leaning in.

Great. Thank you so much for the time.

Our next question comes from the line of Jeremy Tornay with J.P. Morgan. Please proceed with your question.

Hey, Jeremy. All right. Good morning. I was just wondering if I could start with a large load increase here. I was just wondering if you could provide a bit more color, I guess, on the current state of conversations and interest there, and where does the total count stand, you know, versus last quarter, or I think it was 11.8 as of the end of December?

Yeah, Jeremy, that's about right. And we've seen, you know, it's interesting. Last year, if you go through the year, we saw, I think, you know, you kind of were seeing the knee of the curve as upon history, what different new business coming. Say we're still kind of at low either here or...

That's helpful. That kind of leads to my next question here, if you might be able to provide some color bifurcating between the states as far as interest or type of activity, type of conversations. And at the same time, just curious, I guess, how does demand response currently factor into any of these discussions and has that changed over time?

I don't think that DR has time, but I do think the first part of your question is a little bit more pointed and provides a little bit more differentiation, just interested in going where. These significant tax incentives in New Jersey, you have not seen the sizable interest in New Jersey. That's been a consistent concept that we've talked about for a while, and then in other states, and there are plenty of them where some of the larger hyperscalers have the ability They are a thing we've seen, and I would say that the opportunities.

Got it. I'll leave it there. Thanks, Jeremy.

Thank you. Our next question comes from the line of Nick Amosuchi with Evercore ISI.

Please proceed with your question. Hey, guys. How are we? Just a couple quick couple quick ones for me, if I could. So when we just think about kind of the cadence at Salem and the potential for the capacity upgrade, would we pretty much assume that you would be seeking the extension first and then any kind of firm announcement on a potential up rate?

So we're at the license extension first?

Yeah.

Salem units have gone through 2036 and 2040. Anything we would do to expect to the up rate by comparing 27 or the average in 29. So there'll be activity, I think, on the license extension. That I mentioned.

Yeah, so very specific to be in before we...

And then, if I could, too, just given kind of the strong performance, obviously, you know, somewhat weather-driven in the first quarter, but roughly adjusted EPS, roughly 36% of the midpoint, and so that's, you know, pretty above seasonal. I just wanted to see, I mean, understanding that it's early still in the year, but what kind of, what would you need to see kind of going forward to then kind of move either to kind of cut the guidance range to the upper half or kind of increase guidance altogether?

Yeah, I think, you know, so I think there's a piece of that that you see coming through from this winter. I think if I were to give you, you know, a one-word answer, I mean, we're decoupled, so we know it's the offset cut.

Thanks, Dan. We'll see you guys in a couple of weeks. Nice to see you.

Thank you. Our next question comes from the line of Julian DeMoulin-Smith with Jeffries. Please proceed with your question.

Hey, good morning, Ralph team. How are you guys all doing? Quite well. Thank you guys very much. Appreciate it.

Looking forward to another video.

Come on, bring it on. Let's do it. Got to keep it lively. Look, let me ask you guys about PJM here, and I know people keep needling you about it, and I want to just come back to it real quickly. How do you think about your participation, whether in a bilateral context or, you know, outright in some other permutation? Again, we've heard comments this morning. We've heard comments elsewhere. I mean, just how do you think about that coming together, and just how would you set expectations around this process? You all are keeping close tabs on this whole process at the state level and at the PGM level. How would you set expectations about what ultimately happens in terms of backstop versus, you know, bilateral versus just capacity not getting procured on a timely basis?

Yeah, so in any flavor.

But I'm curious about your waxing about the process and then separately your participation in any flavor.

Yeah, look, I think the number one thing that we've been focused and we inherently get really like, it's got to be utility like.

Got it. OK, fair enough. And then just when you think about the you guys keep talking about new nuclear. And obviously, I get why. How do you think about what that looks like in the state in terms of the next steps? I mean, a lot of folks talk about it, but obviously, you know, you've got to get the right risk construct. I totally appreciate that. But just tangibly, what would the next step look like here? just to show progress if there is to be something to happen?

I think it's going to be a combination of government supporting the effort, right? You're going to need to see something. You need to ensure.

Sorry, and just to elaborate on the last one real quickly, your response there, is there a timing on when you could follow through on contracted new gen, whether that's gas or more specific storage of solar?

I mean, I think you've got to see what all the rules are. That was my point. You know, when you look at markets in particular.

I hear you.

All right. I'll leave it there. More to go. Thanks, Julian. See you. Thank you.

Our next question comes from the line of Michael Sullivan with Wolf Research.

Please proceed with your question. Hey, guys. Hey, Ralph. Picking up on the kind of your last comment there, just the energy side of the equation, any color you can give on just this pretty sharp move in PJM pricing and how you're thinking about that on kind of both sides of the house, like any color on longer-term hedges, and then how you're thinking about kind of the bill impact from that on the utility side? Michael, this is Dan. The most immediate impact on the

bill is going to be the BGS that we just procured in February. And for PSE&G customers, they're going to see their bill go down well because of what happens. That will change again next June in the BGS construct that the state put together many, many years ago that still does exist. And I think, you know, more broadly, if you think about markets, one of the things I do think that markets are trying to figure out is where this RBA does go to, which load is going to come on the system, and what generation is going to be there to meet it. And that's ultimately through the market construct, how prices are going to be set. And so we'll continue to digest, like in any other market, they'll use the available data, but in this instance, it's how much load is going to actually come online, when it's going to come online, and the same two questions around supply. And I think you've seen some IMAS people try to think that through. that'll demand is a little bit clearer from a volumetric person okay that's helpful any color on how much you're you're hedging into this in in the out years and then um and then just next

last thing just kind of next couple months here into kind of the summer resets at the legislature

anything you expect or are focused on getting done between now and then about resource adequacy okay

great thank you very much thanks thank you our next question comes from the line of sophie karp

with key bank capital markets please proceed with your question hi good morning good morning thank you for taking my question um i'm curious if you see any opportunities potentially for yourselves in the upcoming pgm transmission open window i think that we even referenced a little bit of

that on the prepare we open windows we'll do exactly the same thing this summer when the next window what we think makes the most sense for things for I think we have a and that doesn't mean that everything is going to make sense for us and so we go through you think makes sense better to did to the extent that we think something does and so I'll remind you the capital plan that's in place doesn't have anything that we have not already won do you think we have the skill set prevent the capital plan to the and then I'm kind of data centers I appreciate your

comment that the absence of the incentives they're not necessarily looking to locate in new jersey but is it an option for your new jersey assets to have virtual uh tta virtual offtake with like a facilities elsewhere or is that not a major focus right now

no look we we are deliverable to beyond new jersey and even today that power flows on the grid uh there is absolutely the potential uh for us to do something with the new jersey units or the pennsylvania units beyond uh the node that they're at and and beyond the zone that they're in. So yes, that is possible. Thank you. Thank you. Our next question comes from the

line of Rennie Singh with Bank of America. Please proceed with your question. Hi, guys. Thanks for

taking the question. You know, first on the BGS auction, obviously you got the 1.8% reduction that's going to go into effect June. So I guess how are you thinking about the repeatability of that, you know, with capacity prices either staying at the same level or going lower and, you know, potentially power prices going up. But I guess, do you think you can kind of keep up the same decreases year over year?

Yeah. I mean, you understand the pieces as well as we do. And it's going to be for a three-year period by design, unless there are delays at PJM, capacity auctions that have already transpired. So that's a known item. And we don't know what they all are now. And then a forecast of what energy prices look like? And that's probably your biggest variable as you go forward, what will those energy prices look like? The other thing I would say, though, is it being an auction, if you were to see a $3 impact, you would see a $1 impact because of the gradual effect of that. You'd see that $1 increase across three years, but the gradualism of that mechanism, you know, beyond that, trying to estimate exactly where things are going to go is kind of tough to do.

about. Yeah, that makes sense. Just to reinforce something Dan said there, just a reminder, the last time we had stickers, the magnitude of euro. Yeah, I think that is very clear. It makes

sense. And then on the RBP, I know we've talked a lot about it on this call, but I saw the proposal that you filed jointly with some other EDCs. I guess, how are you thinking about what's the ideal things that need to be solved and you know would be in your favor for that like in terms of I thought that the load serving entity you know should be the cost responsibility but anything else that you would point out no I think what

I said earlier I think is the key is the planning process right you really got to make sure that the planning process is a solid one and there's consent right that's the key to have the have the you know RP requirement ability is where we

I think that all makes sense. Very clear. Thanks so much, guys.

Thank you. And our last question comes from the line of Anthony Crado with Mizuho Securities. Please proceed with your question.

Hey, Ralph, Dan, thanks for squeezing me in on a busy morning. Just to follow up to, I think, Nick's question earlier on the nuclear uprates and maybe the timing of them. Just if you could help me, when do you file for the timing, but also approval for the uprates? Is that an additional CapEx opportunity or it's further out in the five-year plan or you already have it included in your current plan?

Yeah, we've got the capital that's included. The outage it goes into at the 2029.

No, more of the license extension. I'm sorry if I wasn't clear. Oh, yeah.

Over the next.

And, again, I know the timing is not clear with the NRC. Is that within the five-year period or it could be or it could also be outside the five-year period?

I think we would certainly gain consensus to be done in the five-year timeline.

That's all I had. Thanks so much.

And there are no further questions at this time. I would like to turn the floor back to Mr. LaRosa for closing comments.

Well, the weather was not easy for us, and people continue to work above and beyond. Thank you to the team, and thank you all.

Ladies and gentlemen, this concludes today's teleconference. You may disconnect your line at this time. Thank you for your participation.