PSE&G's growth is driven by investments in T&D infrastructure and programs that meet State targets for cleaner energy, including EE programs, EV infrastructure, and solar generation. This strategic focus is supported by regulatory approvals and cost recovery mechanisms.

PSEG was awarded a $424 million project by PJM to construct a 500 kV transmission line in Maryland and northern Virginia, with service expected in 2027. This highlights PSEG's strategic expansion into regulated transmission projects outside its traditional service area.

PSE&G is investing in programs that meet State targets to help deliver cleaner energy, including EE programs to help customers use less energy and investment programs to build EV infrastructure and solar generation.

The safety and security of employees and the public are integrated into PSE&G's culture and business operations. The company provides support to employees, encourages feedback on safety matters, and provides training and protective equipment to mitigate workplace risks.

PSE&G has a comprehensive workforce planning strategy to support hiring needs, including hiring ahead of attrition for skilled trade roles and community outreach. The company values employee growth and development, offering opportunities to enhance skills and abilities.

PSE&G embraces a broad definition of diversity and supports employee business resource groups and local inclusion teams. The company seeks to offer opportunities that are relevant and accessible to all employees, including community outreach, volunteerism, mentorship, recognition and professional development.

The company's business plan depends on capital improvements, including T&D facilities and nuclear generation projects. Failure to obtain regulatory approvals, delays, cost escalations, or unsuccessful construction could materially affect financial position and cash flows.

Climate change may lead to increased legislative and regulatory burdens, changing customer preferences, and lawsuits. Severe weather events can stress systems, disrupt operations, and cause property damage, requiring additional expenses.

The company faces increased risk of cyberattacks due to the vulnerability of infrastructure and technology. A successful attack could disrupt operations, compromise data, and lead to financial losses and reputational damage.

PSE&G earns its return on net investment in rate base for providing T&D service, not by supplying the commodity. Based on the transmission formula rate and CIP, PSE&G is minimally impacted by changes in customer usage.

PSEG Power competes with merchant generators, utility generators, energy marketers, and other financial entities in wholesale energy markets. Anticipated demand growth, retirements of existing generation, and technological advances could impact forward market prices.

Environmental issues, including requirements regarding capital investments at nuclear stations and regulations of carbon dioxide emissions, could impact PSEG Power's competitiveness.

The supply chain of goods and services could be impacted by several factors, including sanctions, tariffs, manufacturing labor shortages, domestic and international shipping constraints, increases in demand, and shortages of raw materials and specialty components.

The company seeks to manage costs and maintain affordable customer rates in an inflationary environment, which could impact customer collections and future regulatory proceedings.

Recovery under the CIP is subject to certain limitations, including an actual versus allowed ROE test and ceilings on customer rate increases.

Artificial Intelligence is an emerging area of technology that has the potential to impact various aspects of business operations and customer interactions.

PSE&G invests in EE programs to help customers use less energy and investment programs to build EV infrastructure and solar generation. PSE&G is also implementing “smart meters,” and new software and product solutions to improve processes and better manage the electric grid.

PSE&G is working to modernize its electric distribution system and address aging substations and gas metering and regulation stations.

PSE&G's regulated capital investment program is estimated to be in a range of $21 billion to $24 billion for the years 2025-2029. We expect these capital investments to result in a compound annual growth rate in our regulated rate base in a range of 6% to 7.5% from year-end 2024 to year-end 2029.

Based on our transmission formula rate and the CIP program for electric and gas distribution, we are also minimally impacted by changes in customers' usage.

PSE&G is focused on investing to meet growing energy demand, modernize our energy infrastructure, improve reliability and resilience, increase EE and deliver clean energy to meet customer expectations and be well aligned with public policy objectives.

PSE&G has established a net zero greenhouse gas (GHG) emissions by 2030 goal that includes direct GHG emissions (Scope 1) and indirect GHG emissions from operations (Scope 2) across our business operations, assuming advances in technology, public policy and customer behavior.

Through GSMP II, from 2018 through 2024 we reduced reported methane emissions by over 30% system wide.

Consistent with the policy set forth in New Jersey's EMP, the BPU has supported electrification of the transportation sector. EDCs in New Jersey, including PSE&G, are making investments, approved by the BPU for recovery in rates, initially focused on light duty vehicles, such as preparatory work to deliver infrastructure to the EV charging point.

Through rulemaking proceedings, FERC continues to determine whether changes are needed to current transmission and interconnection planning rules to facilitate the integration of renewable resources onto the grid. FERC is also examining whether there is sufficient oversight over transmission costs to protect customers.

The BPU noted that its consultant's analysis supported the argument against the need for additional interstate pipeline capacity and also supports the BPU's aggressive policy approach to reduce New Jersey's overall reliance on fossil fuels and achieve the New Jersey governor's goal of 100% clean energy by 2050.

In September 2024, the United States Circuit Court for the District of Columbia Circuit vacated FERC approval of the REA Expansion Project, which involves a natural gas pipeline running through New Jersey and several other states, and in which PSEG Energy Resources & Trade, LLC, the provider of gas supplies to satisfy PSE&G's BGSS customers, is a customer.