 • NYSE: PEG • April 2020 PSEG Investor Update BUILDING A SUSTAINABLE, FINANCIALLY SOUND ENERGY INFRASTRUCTURE COMPANY
EXHIBIT 99 |
 Forward-Looking Statements 2 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. Such forward-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’s beliefs 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 actual results 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 and subsequent 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, including pandemics such as the current coronavirus outbreak, 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 war, terrorism, pandemics, including the current coronavirus outbreak, 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 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 in making any investment
decision. Forward-looking statements made in this presentation 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, and Section 21E of the Securities Exchange Act of 1934, as amended.
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 PSEG powering New Jersey’s response to COVID-19
PSEG Response to COVID-19
NJ utility service and power generation deemed as essential
services Prioritizing uninterrupted utility
operations at PSE&G, PSEG Power and PSEG Long Island with updated screening procedures to ensure customer and employee health and safety
Activated PSEG senior-level, cross-functional team to
engage all company resources at highest alert
Approximately 8,000 of 13,000 total workforce working
remotely/from home Voluntarily suspended
shut-offs of electric and gas service to residential customers for non-payment PSEG donated 50,000 N95 masks to NJ’s largest healthcare system
PSE&G and PSEG-LI assisting with electricity
provisioning for emergency medical facilities construction PSEG Foundation actively supporting local food banks and community organizations
PSEG Operations
All NJ and NY field crews operating with latest COVID-19
health and safety protocols; PPE for all field associates Construction crews continuing work on essential projects to replace and upgrade critical energy infrastructure
Customer service call centers converted to
home-based platform; improvements seen in response times and customer satisfaction PSE&G temporarily suspended certain non-critical repair work inside customer homes and business
premises 3 |
 PSEG well positioned during COVID-19 challenges Strong Liquidity Position Total credit facilities $4.2B; $2.9B available at year-end 2019
• Credit facilities extended through March 2024 In January 2020, PSE&G issued $600M MTNs; PSE&G’s $2.7B 2020 capital program to be funded
consistent with authorized capital structure of
54% equity PSEG closed on a $300M term loan in
March and a $200M term loan in April for general corporate purposes Debt Maturities of $1.4B in 2020: PSE&G $259M; PSEG Power $406M and $700M at PSEG
No need to issue new equity to fund 2020-2024 capital
program Pension has No Near-term Cash
Requirements Funded status: 86% at YE 2019;
Next pension re-measurement at YE 2020 Expect
accumulated pension funding credits of ~$600M can be used to defray future cash contributions over next two years Market/asset performance is measured at year-end and amortized over several years
State Regulatory Proceedings Continuing Online
NJ Board of Public Utilities (NJBPU) continues to
hold regular commission agenda meetings via internet teleconference NJBPU Staff finalizing Energy Efficiency (EE) Transition Stakeholder Proceeding; Webinar conducted April 1;
and NJBPU action anticipated May 2020 to establish broad EE
framework for NJ PSE&G Clean Energy Future
(CEF)–EE scheduled for conclusion by September 2020 PSE&G updated its $0.6B CEF–Energy Cloud–AMI (EC -
AMI) filing in April following NJBPU lifting of NJ moratorium
NJBPU initiated proceeding to consider the Fixed
Resource Requirement option to procure future NJ capacity AMI=AUTOMATED METERING INFRASTRUCTURE 4 |
 PSE&G T&D Margin Allocation DISTRIBUTION MARGIN IS WEATHER NORMALIZED AND COMPRISED OF FIXED (FLAT MONTHLY SERVICE CHARGE) + VARIABLE VOLUME (RESIDENTIAL, ELECTRIC SMALL COMMERCIAL & INDUSTRIAL, GAS C&I) + PEAK DEMAND (ELECTRIC C&I, LARGE GAS C&I). E=ESTIMATE • Transmission and Residential segments of Distribution expected to contribute 75% of total PSE&G margin • Transmission is fixed with no variable/ volume risk • Distribution margin is ~60% Residential • Significant portion of remaining margin comprised of fixed versus variable • Near-term COVID-19 Distribution impacts expected to Residential margins and C&I margins • Variable margin is lowest during the current shoulder season period • Electric bad debt expense recovered through the societal benefits clause • Weather normalization clause for Gas Distribution PSE&G 2020E Margin Illustration 5 |
 Investment Priorities Aligned with NJ’s Clean Energy Agenda
Energy Efficiency: NJBPU extended schedule to September 2020;
Investment in existing programs extended by $111M
Procedural schedule set for $0.6B CEF–EC–AMI; NJBPU
Staff proposed procedural schedules for $0.3B CEF–Electric Vehicles and $0.1B CEF—Energy Storage PSEG continuing due diligence and negotiations toward a Joint Venture agreement to potentially acquire a 25% equity
interest in Ørsted’s 1,100 MW Ocean Wind
project Federal Energy Regulatory Commission (FERC) /
PJM FERC’s NOPR on Transmission Incentives is
supportive of continued and expanded incentives for participation in regional transmission organizations and project incentives PJM’s March 18 compliance filing on FERC’s Capacity Order set price floors for NJ’s nuclear plants to bid
as price takers in the upcoming PJM capacity
auction James Danly (R) sworn in as fourth FERC
Commissioner; FERC indicated it will provide public and regulated entities relief from certain Commission regulatory obligations to assure business continuity during the national response to
COVID-19 Regulatory and Policy Initiatives
- Update
FRR=FIXED
RESOURCE
REQUIREMENT;
NOPR=NOTICE
OF
PROPOSED
RULEMAKING
2021
Q4 2020
Q3 2020
Q2 2020
Anticipate FERC order on PJM
compliance filing NJBPU opened proceeding to investigate viability of FRR for procurement of future NJ capacity Anticipate PJM parameters for 2022 / 2023 auction Q3/Q4 – File 2 ZEC application with NJBPU FRR plans due to PJM (30 days before auction) Late Dec – 2022 / 2023 PJM capacity auction (earliest) Apr – NJBPU order expected on award of ZECs for 2022–2025 Potential FERC/PJM Capacity Auction Timeline: 6 nd |
 APPENDIX |
 Electric Gas Customers 5-Year Annual Customer Growth* 2.3 Million 0.8% 1.9 Million 0.7% 2019 Electric and Gas Sales 40,684 GWh 2,589M Therms** Sales Mix (2019) Residential 33% 58% Commercial 58% 38% Industrial 9% 4% PSE&G – New Jersey’s largest: • Electric and Gas Distribution utility • Transmission business • Investor in renewables and energy efficiency • Appliance service provider *ANNUAL CUSTOMER GROWTH USES 2014 AS BASE YEAR. **GAS FIRM SALES ONLY. ***EXCLUDES CWIP. YEAR-END CWIP BALANCE WAS $1.6 BILLION.
45% 52% 3% PSE&G 2019 Rate Base*** >$20 B Distribution Transmission Solar & EE 8 |
 Clean Energy Future program supports economic recovery, helps
lower bills and sized to achieve NJ’s Clean Energy Act
targets •
Energy Efficiency: Helps achieve NJ’s targets of 2% and 0.75% electric & gas savings requirements; green jobs ready • Electric Vehicles: “Smart” infrastructure
focused on residential, workplace, multi-family,
underserved communities and travel
corridors •
Energy Storage: Utility-scale systems help defer distribution investment, enables more solar and enhances resiliency • Energy Cloud -- AMI: Accelerated roll-out of ~2 million electric meters and supporting infrastructure Program Investment $ Billions Energy Efficiency $2.5 Electric Vehicles $0.3 Energy Storage $0.1 Energy Cloud – AMI $0.6 Investment Total $3.5 PSE&G’s ~$3.5 Billion, 6-year investment proposal offers cost-effective, innovative
and ready-to-implement solutions supporting NJ’s
clean energy goals 9
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 Climate Strategy – PSEG’s fleet transformation is addressing climate change PSEG's generation fleet continues to be much less carbon intensive than PJM and USA averages E=ESTIMATE PSEG Generation Carbon Emission Intensity vs. PJM and USA
(2005 -
2020E)
~50% less = 2.5 million cars
Nuclear: Higher capacity
factors, and capacity uprates Coal: Lower capacity factors, and plant retirements Gas: Greater efficiency
Coal: Divested PA
coal ~60%
decline
2005 -
2020E
10 |