PSEG ANNOUNCES 2023 RESULTS
$5.13 PER SHARE NET INCOME
$3.48 PER SHARE NON-GAAP OPERATING EARNINGS
Reaffirms 2024 Non-GAAP Operating Earnings Guidance of $3.60 - $3.70 Per Share
NEWARK, N.J., Feb. 26, 2024 /PRNewswire/ -- Public Service Enterprise Group (NYSE: PEG) reported the following results for the full-year and fourth quarter of 2023:
PSEG Consolidated (unaudited)
Full Year Comparative Results
Income Diluted Earnings
Per Share
($ millions, except per share amounts) FY 2023 FY 2022 FY 2023 FY 2022
Net Income $2,563 $1,031 $5.13 $2.06
Reconciling Items (821) 708 (1.65) 1.41
Non-GAAP Operating Earnings $1,742 $1,739 $3.48 $3.47
Average Shares 500 501
PSEG Consolidated (unaudited)
Fourth Quarter Comparative Results
Income Diluted Earnings
Per Share
($ millions, except per share amounts) 4Q 2023 4Q 2022 4Q 2023 4Q 2022
Net Income $546 $788 $1.10 $1.58
Reconciling Items (275) (470) (0.56) (0.94)
Non-GAAP Operating Earnings $271 $318 $0.54 $0.64
Average Shares 500 500
The tables above provide a reconciliation of PSEG's Net Income to non-GAAP Operating Earnings for the fourth quarter and full year. See Attachments 8 and 9 for a complete list of items excluded from Net Income in the determination of non-GAAP Operating Earnings.
"PSEG achieved solid operating and financial performance in 2023. Our non-GAAP results for the full year came in at the high-end of our 2023 guidance range and marked the 19th consecutive year that we delivered results that met or exceeded our guidance. PSE&G efficiently completed its largest ever capital investment plan in a single year - totaling $3.7 billion - focused on meeting our customers' needs by modernizing our system infrastructure, maintaining our best in the state reliability and resiliency, and expanding our energy efficiency offerings to customers at every income level to help them reduce their energy usage and bills," said Ralph LaRossa, PSEG's chair, president and CEO.
PSEG made significant progress during 2023, executing on its strategy to increase the predictability of the business and the visibility of growth, and providing value to its customers, including:
-- Streamlining the business mix by retaining our 3,760 MW nuclear fleet
(which benefits from the nuclear production tax credit, effective
January 1, 2024, and helps us finance regulated growth through 2028
without the need for new equity) and exiting offshore wind generation
with recovery of our investment.
-- Reaching a $900 million settlement to extend our Gas System
Modernization Program through 2025, and a $280 million settlement to
extend our award-winning Clean Energy Future-Energy Efficiency (EE)
program into mid-2024.
-- Enabling the broad expansion of our EE programs through an effective
Conservation Incentive Program, which also offset the 2023 volumetric
impacts of unseasonably mild winter and summer weather.
-- Lowering PSE&G's gas commodity charge from $0.47 to $0.40 per therm for
winter 2024, following the two previous supply charge reductions during
the winter of 2023.
-- Placing into service over 1.5 million PSE&G smart meters.
-- Reaching new multi-year labor agreements with all of our represented
employees.
-- Achieving a 93% capacity factor at PSEG Nuclear that included a
breaker-to-breaker run at Salem Unit 1, and producing approximately 32
TWh of carbon free, base-load power.
-- Successfully reducing our pension variability, twice, through the
approval of a regulatory accounting order last February and a
billion-dollar lift-out in August.
-- Being named to the Dow Jones Sustainability North America Index for the
16(th) year in a row.
-- Being recognized as #1 in Customer Satisfaction with Residential and
Business Electric Service in the East among Large Utilities by J.D.
Power in 2023.
Looking ahead, PSEG recently updated its five-year regulated capital spending plan to $18 billion to $21 billion, which supports our outlook for compound annual growth in rate base (of 6% to 7.5%) and for non-GAAP Operating Earnings (of 5% to 7%) over the 2024 to 2028 period.
In December 2023, PSE&G filed its comprehensive electric and gas base rate case, as required, with the New Jersey Board of Public Utilities (BPU). A main component of the case is to recover over $3 billion in capital investments that were made to strengthen and modernize the state's electric and gas infrastructure since PSE&G's last rate case in 2018. PSE&G's request is its first in six years and is among the lowest proposed rate increases filed by a NJ public utility over that time period.
PSE&G also submitted its Clean Energy Future-Energy Efficiency II (CEF-EE II) filing to the BPU. The $3.1 billion proposal is aligned with New Jersey's updated energy efficiency framework covering the 30-month period from January 2025 through June 2027 and would be spent over a six-year period.
LaRossa added, "For 2024, we are reaffirming our non-GAAP Operating Earnings guidance range of $3.60 to $3.70 per share. The recent $0.12 increase to PSEG's 2024 indicative annual common dividend rate to $2.40 per share also extends our track record of providing dividend income to our investors for 117 consecutive years."
PSEG Results by Segment
Public Service Electric and Gas
Fourth Quarter and Full Year Comparative Results
($ millions, except per share amounts) 4Q 2023 4Q 2022 FY 2023 FY 2022
Net Income $291 $352 $1,515 $1,565
Net Income Per Share (EPS) $0.58 $0.70 $3.03 $3.12
Non-GAAP Operating Earnings $296 $352 $1,532 $1,565
Non-GAAP Operating EPS $0.59 $0.70 $3.06 $3.12
Consistent with management's guidance for full-year 2023 non-GAAP earnings, PSE&G's fourth quarter results benefited from growth in incremental investments in Transmission and Gas Distribution, which were offset by the expected decline in pension income and lower OPEB related credits, as well as higher depreciation, amortization and interest expense resulting from higher investment (not yet reflected in rates), as well as higher O&M costs in the quarter due to timing.
PSEG Power & Other
Fourth Quarter and Full Year Comparative Results
($ millions, except per share amounts) 4Q 2023 4Q 2022 FY 2023 FY 2022
Net Income (Loss) $255 $436 $1,048 $(534)
Net Income (Loss) Per Share (EPS) $0.52 $0.88 $2.10 $(1.06)
Non-GAAP Operating Earnings $(25) $(34) $210 $174
Non-GAAP Operating EPS $(0.05) $(0.06) $0.42 $0.35
PSEG Power & Other results for the quarter reflect an improvement in energy margin, offset by a reduction in capacity revenues, and expected lower pension income and OPEB credits compared with the fourth quarter of 2022.
###
PSEG will host a conference call to review its fourth quarter and full year 2023 results, earnings guidance, and other matters with the financial community at 11:00 a.m. ET today. Please register to access this event by visiting:
https://investor.pseg.com/investor-news-and-events.
Media Relations: Investor Relations:
973-430-7734 Carlotta Chan
973-430-6565
Carlotta.Chan@pseg.com
About PSEG
Public Service Enterprise Group (PSEG) (NYSE: PEG) is a predominantly regulated infrastructure company focused on a clean energy future. Guided by its Powering Progress vision, PSEG aims to power a future where people use less energy, and it's cleaner, safer, and delivered more reliably than ever. PSEG's commitment to sustainability is demonstrated in our net-zero 2030 climate vision and participation in the U.N. Race to Zero, as well as our inclusion on the Dow Jones Sustainability North America Index. PSEG's businesses include Public Service Electric and Gas Co. (PSE&G), PSEG Power and PSEG Long Island (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 for comparing PSEG's financial performance to previous financial results. Non-GAAP Operating Earnings exclude the impact of gains (losses) associated with the Nuclear Decommissioning Trust (NDT), Mark-to-Market (MTM) accounting and other material infrequent items.
See Attachments 8 and 9 for a complete list of items excluded from Net Income/(Loss) in the determination of non-GAAP Operating Earnings. The presentation of non-GAAP Operating Earnings is intended to complement and should not be considered an alternative to the presentation of Net Income/(Loss), which is an indicator of financial performance determined in accordance with GAAP. In addition, non-GAAP Operating Earnings 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 guidance, PSEG is unable to reconcile this non-GAAP financial measure to the most directly comparable GAAP financial measure because comparable GAAP measures are not reasonably accessible or reliable due to the inherent difficulty in forecasting and quantifying measures that would be required for such reconciliation. Namely, we are not able to reliably project without unreasonable effort MTM and NDT gains (losses), for future periods due to market volatility. These items are uncertain, depend on various factors, and may have a material impact on our future GAAP results.
Forward-Looking Statements
Certain of the matters discussed in this report 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 Item 1A. Risk Factors, Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A), Item 8. Financial Statements and Supplementary Data--Note 13. Commitments and Contingent Liabilities, and other filings we make with the United States Securities and Exchange Commission (SEC), including our subsequent reports on Form 10-Q and Form 8-K. These factors include, but are not limited to:
-- any inability to successfully develop, obtain regulatory approval for,
or construct transmission and distribution, and our nuclear generation
projects;
-- the physical, financial and transition risks related to climate change,
including risks relating to potentially increased legislative and
regulatory burdens, changing customer preferences and lawsuits;
-- any equipment failures, accidents, critical operating technology or
business system failures, natural disasters, severe weather events, acts
of war, terrorism or other acts of violence, sabotage, physical attacks
or security breaches, cyberattacks or other incidents that may impact
our ability to provide safe and reliable service to our customers;
-- any inability to recover the carrying amount of our long-lived assets;
-- disruptions or cost increases in our supply chain, including labor
shortages;
-- any inability to maintain sufficient liquidity or access sufficient
capital on commercially reasonable terms;
-- the impact of cybersecurity attacks or intrusions or other disruptions
to our information technology, operational or other systems;
-- a material shift away from natural gas toward increased electrification
and a reduction in the use of natural gas;
-- failure to attract and retain a qualified workforce;
-- increases in the costs of equipment, materials, fuel, services and
labor;
-- the impact of our covenants in our debt instruments and credit
agreements on our business;
-- adverse performance of our defined benefit plan trust funds and Nuclear
Decommissioning Trust Fund and increases in funding requirements and
pension costs;
-- any inability to extend certain significant contracts on terms
acceptable to us;
-- development, adoption and use of Artificial Intelligence by us and our
third-party vendors;
-- fluctuations in, or third-party default risk in wholesale power and
natural gas markets, including the potential impacts on the economic
viability of our generation units;
-- our ability to obtain adequate nuclear fuel supply;
-- changes in technology related to energy generation, distribution and
consumption and changes in customer usage patterns;
-- third-party credit risk relating to our sale of nuclear generation
output and purchase of nuclear fuel;
-- any inability to meet our commitments under forward sale obligations and
Regional Transmission Organization rules;
-- 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 projects or programs may not be fully
approved by regulators and its capital investment may be lower than
planned;
-- our ability to receive sufficient financial support for our New Jersey
nuclear plants from the markets, production tax credit and/or zero
emission certificates program;
-- adverse changes in and non-compliance with energy industry laws,
policies, regulations and standards, including market structures and
transmission planning and transmission returns;
-- risks associated with our ownership and operation of nuclear facilities,
including increased nuclear fuel storage costs, regulatory risks, such
as compliance with the Atomic Energy Act and trade control,
environmental and other regulations, as well as operational, financial,
environmental and health and safety risks;
-- changes in federal and state environmental laws and regulations and
enforcement;
-- delays in receipt of, or an inability to receive, necessary licenses and
permits and siting approvals; and
-- changes in tax laws and regulations.
All of the forward-looking statements made in this report 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 report apply only as of the date of this report. 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 report 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.
From time to time, PSEG and PSE&G release important information via postings on their corporate Investor Relations website at https://investor.pseg.com. Investors and other interested parties are encouraged to visit the Investor Relations website to review new postings. You can sign up for automatic email
alerts regarding new postings at the bottom of the webpage at https://investor.pseg.com or by navigating to the Email Alerts webpage here. The information on https://investor.pseg.com and https://investor.pseg.com/resources/email-alerts/default.aspx is not incorporated herein and is not part of this
press release or the Form 8-K to which it is an exhibit.
---
Attachment 1
Public Service Enterprise Group Incorporated
Consolidating Statements of Operations
(Unaudited, $ millions, except per share data)
Three Months Ended December 31, 2023
PSEG Eliminations PSE&G PSEG
Power &
Other
(a)
OPERATING REVENUES $2,605 $(306) $1,853 $1,058
OPERATING EXPENSES
Energy Costs 743 (306) 710 339
Operation and Maintenance 871 495 376
Depreciation and Amortization 292 252 40
Loss on Asset Dispositions and Impairments 7 7
Total Operating Expenses 1,913 (306) 1,457 762
OPERATING INCOME 692 396 296
Net Gains (Losses) on Trust Investments 126 126
Net Other Income (Deductions) 40 15 25
Net Non-Operating Pension and OPEB Credits (Costs) 27 28 (1)
Interest Expense (198) (129) (69)
INCOME BEFORE INCOME TAXES 687 310 377
Income Tax Expense (141) (19) (122)
NET INCOME $546
$ - $291 $255
Reconciling Items Excluded from Net Income
(b) (275) 5 (280)
OPERATING EARNINGS (non-GAAP) $271
$ - $296 $(25)
Earnings Per Share
NET INCOME $1.10
$ - $0.58 $0.52
Reconciling Items Excluded from Net Income
(b) (0.56) 0.01 (0.57)
OPERATING EARNINGS (non-GAAP) $0.54
$ - $0.59 $(0.05)
Three Months Ended December 31, 2022
PSEG Eliminations PSE&G PSEG
Power &
Other
(a)
OPERATING REVENUES $3,139 $(466) $2,030 $1,575
OPERATING EXPENSES
Energy Costs 996 (466) 881 581
Operation and Maintenance 868 489 379
Depreciation and Amortization 278 238 40
Losses on Asset Dispositions and
Impairments 33 1 32
Total Operating Expenses 2,175 (466) 1,609 1,032
OPERATING INCOME 964 421 543
Loss from Equity Method Investments (2) (2)
Net Gains (Losses) on Trust Investments 87 87
Net Other Income (Deductions) 38 22 16
Net Non-Operating Pension and OPEB Credits (Costs) 94 70 24
Interest Expense (178) (108) (70)
INCOME BEFORE INCOME TAXES 1,003 405 598
Income Tax Expense (215) (53) (162)
NET INCOME $788
$ - $352 $436
Reconciling Items Excluded from Net
Income(b) (470) (470)
OPERATING EARNINGS (non-GAAP) $318
$ - $352 $(34)
Earnings Per Share
NET INCOME $1.58
$ - $0.70 $0.88
Reconciling Items Excluded from Net
Income(b) (0.94) (0.94)
OPERATING EARNINGS (non-GAAP) $0.64
$ - $0.70 $(0.06)
(a) Includes activities at PSEG Power, PSEG Long Island, Energy Holdings, PSEG Services Corporation and the Parent.
(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 Incorporated
Consolidating Statements of Operations
(Unaudited, $ millions, except per share data)
Year Ended December 31, 2023
PSEG Eliminations PSE&G PSEG
Power &
Other
(a)
OPERATING REVENUES $11,237 $(1,103) $7,807 $4,533
OPERATING EXPENSES
Energy Costs 3,260 (1,103) 3,010 1,353
Operation and Maintenance 3,150 1,843 1,307
Depreciation and Amortization 1,135 980 155
Loss on Asset Dispositions and Impairments 7 7
Total Operating Expenses 7,552 (1,103) 5,833 2,822
OPERATING INCOME 3,685 1,974 1,711
Income from Equity Method Investments 1 1
Net Gains (Losses) on Trust Investments 189 189
Net Other Income (Deductions) 172 (4) 80 96
Net Non-Operating Pension and OPEB Credits (Costs) (218) 114 (332)
Interest Expense (748) 4 (493) (259)
INCOME BEFORE INCOME TAXES 3,081 1,675 1,406
Income Tax Expense (518) (160) (358)
NET INCOME $2,563
$ - $1,515 $1,048
Reconciling Items Excluded from Net
Income(b) (821) 17 (838)
OPERATING EARNINGS (non-GAAP) $1,742
$ - $1,532 $210
Earnings Per Share
NET INCOME $5.13
$ - $3.03 $2.10
Reconciling Items Excluded from Net Income
(b) (1.65) 0.03 (1.68)
OPERATING EARNINGS (non-GAAP) $3.48
$ - $3.06 $0.42
Year Ended December 31, 2022
PSEG Eliminations PSE&G PSEG
Power &
Other
(a)
OPERATING REVENUES $9,800 $(1,401) $7,935 $3,266
OPERATING EXPENSES
Energy Costs 4,018 (1,401) 3,270 2,149
Operation and Maintenance 3,178 1,838 1,340
Depreciation and Amortization 1,100 935 165
Losses on Asset Dispositions and Impairments 123 123
Total Operating Expenses 8,419 (1,401) 6,043 3,777
OPERATING INCOME 1,381 1,892 (511)
Income from Equity Method Investments 14 14
Net Gains (Losses) on Trust Investments (265) (2) (263)
Net Other Income (Deductions) 124 (1) 88 37
Net Non-Operating Pension and OPEB Credits (Costs) 376 281 95
Interest Expense (628) 1 (427) (202)
INCOME (LOSS) BEFORE INCOME TAXES 1,002 1,832 (830)
Income Tax Benefit (Expense) 29 (267) 296
NET INCOME (LOSS) $1,031
$ - $1,565 $(534)
Reconciling Items Excluded from Net Income
(Loss)(b) 708 708
OPERATING EARNINGS (non-GAAP) $1,739
$ - $1,565 $174
Earnings Per Share
NET INCOME (LOSS) $2.06
$ - $3.12 $(1.06)
Reconciling Items Excluded from Net Income
(Loss)(b) 1.41 1.41
OPERATING EARNINGS (non-GAAP) $3.47
$ - $3.12 $0.35
(a) Includes activities at PSEG Power, PSEG Long Island, Energy Holdings, PSEG Services Corporation and the
Parent.
(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 Incorporated
Capitalization Schedule
(Unaudited, $ millions)
December 31, December 31,
2023 2022
DEBT
Commercial Paper and Loans $949 $2,200
Long-Term Debt* 19,284 18,070
Total Debt 20,233 20,270
STOCKHOLDERS' EQUITY
Common Stock 5,018 5,065
Treasury Stock (1,379) (1,377)
Retained Earnings 12,017 10,591
Accumulated Other Comprehensive Loss (179) (550)
Total Stockholders' Equity 15,477 13,729
Total Capitalization $35,710 $33,999
*Includes current portion of Long-
Term Debt
Attachment 4
Public Service Enterprise Group Incorporated
Condensed Consolidated Statements of Cash Flows
(Unaudited, $ millions)
Year Ended December 31,
2023 2022
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income $2,563 $1,031
Adjustments to Reconcile Net Income to Net Cash Flows
From Operating Activities 1,243 472
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES 3,806 1,503
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES (2,958) (1,101)
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES (1,260) (754)
Net Change in Cash, Cash Equivalents and Restricted Cash (412) (352)
Cash, Cash Equivalents and Restricted Cash at Beginning of Period 511 863
Cash, Cash Equivalents and Restricted Cash at End of Period $99 $511
Attachment 5
Public Service Electric & Gas Company
Retail Sales
(Unaudited)
December 31, 2023
Electric Sales
Three Months Change vs. Year Change vs.
Sales (millions kWh) Ended 2022 Ended 2022
Residential 2,805 5 % 13,076 (6 %)
Commercial &
Industrial 6,181 (5 %) 25,680 (3 %)
Other 96 (1 %) 337 (1 %)
Total 9,082 (2 %) 39,093 (4 %)
Gas Sold and Transported
Three Months Change vs. Year Change vs.
Sales (millions
therms) Ended 2022 Ended 2022
Firm Sales
Residential Sales 427 (9 %) 1,327 (11 %)
Commercial &
Industrial 285 (9 %) 955 (11 %)
Total Firm Sales 712 (9 %) 2,282 (11 %)
Non-Firm Sales*
Commercial &
Industrial 234 13 % 848 (13 %)
Total Non-Firm
Sales 234 848
Total Sales 946 (4 %) 3,130 (12 %)
*Contract Service Gas rate included in non-firm sales
Weather Data*
Three Months Change vs. Year Change vs.
Ended 2022 Ended 2022
THI Hours -Actual 690 103 % 17,820 (10 %)
THI Hours -Normal 443 17,345
Degree Days -Actual 1,325 (13 %) 3,633 (20 %)
Degree Days -Normal 1,567 4,591
*Winter weather as defined by heating degree days (HDD) to serve as a measure for the need for heating. For each day, HDD is calculated as HDD = 65°F - the average hourly daily temperature. Summer weather is measured by the temperature-humidity index (THI), which takes into account both the temperature and the
humidity to measure the need for air conditioning. Both measures use data provided by the National Oceanic and Atmospheric Administration based on readings from Newark Liberty International Airport. Comparisons to normal are based on twenty years of historic data.
Attachment 6
Nuclear Generation Measures
(Unaudited)
GWh Breakdown GWh Breakdown
Three Months Ended Year Ended
December 31, December 31,
2023 2022 2023 2022
Nuclear -NJ 4,676 4,681 20,500 20,172
Nuclear -PA 2,652 2,657 11,099 11,093
7,328 7,338 31,599 31,265
Attachment 7
Public Service Enterprise Group Incorporated
Statistical Measures
(Unaudited)
Three Months Ended December 31, Year Ended December
31,
2023 2022 2023 2022
Weighted Average Common Shares Outstanding (millions)
Basic 498 497 498 498
Diluted 500 500 500 501
Stock Price at End of Period $61.15 $61.27
Dividends Paid per Share of Common Stock $0.57 $0.54 $2.28 $2.16
Dividend Yield 3.7 % 3.5 %
Book Value per Common Share $31.07 $27.63
Market Price as a Percent of Book Value 197 % 222 %
Attachment 8
Public Service Enterprise Group Incorporated
Consolidated Operating Earnings (non-GAAP) Reconciliation
Reconciling Items Three Months Ended Year Ended
December 31, December 31,
2023 2022 2023 2022
($ millions, Unaudited)
Net Income $546 $788 $2,563 $1,031
(Gain) Loss on Nuclear Decommissioning Trust (NDT)
Fund Related Activity, pre-tax (126) (85) (184) 270
(Gain) Loss on Mark-to-Market (MTM), pre-tax(a) (291) (611) (1,334) 635
Pension Settlement Charges, pre-tax 6 338
Plant Retirements, Dispositions and Impairments, pre-tax(b) 14 31
Lease Related Activity, pre-tax 7 25 7 78
Exit Incentive Program (EIP), pre-tax 4 29
Income Taxes related to Operating Earnings (non-GAAP)
reconciling items
(c) 125 187 323 (306)
Operating Earnings (non-GAAP) $271 $318 $1,742 $1,739
PSEG Fully Diluted Average Shares Outstanding (in millions) 500 500 500 501
($ Per Share Impact - Diluted, Unaudited)
Net Income $1.10 $1.58 $5.13 $2.06
(Gain) Loss on NDT Fund Related Activity, pre-tax (0.26) (0.17) (0.37) 0.54
(Gain) Loss on MTM, pre-tax(a) (0.58) (1.22) (2.67) 1.27
Pension Settlement Charges, pre-tax 0.02 0.68
Plant Retirements, Dispositions and Impairments, pre-tax(b) 0.03 0.06
Lease Related Activity, pre-tax 0.01 0.05 0.01 0.15
EIP, pre-tax 0.01 0.06
Income Taxes related to Operating Earnings (non-GAAP)
reconciling items
(c) 0.24 0.37 0.64 (0.61)
Operating Earnings (non-GAAP) $0.54 $0.64 $3.48 $3.47
(a) Includes the financial impact from positions with forward delivery months.
(b) Full year 2022 includes the results for fossil generation sold in February 2022.
(c) Income tax effect calculated at the statutory rate except for qualified NDT related activity, which records an
additional 20% trust tax on income (loss) from qualified NDT Funds, and lease related activity.
Attachment 9
PSE&G Operating Earnings (non-GAAP) Reconciliation
Three Months Ended Year Ended
Reconciling Items December 31, December 31,
2023 2022 2023 2022
($ millions, Unaudited)
Net Income $291 $352 $1,515 $1,565
EIP, pre-tax 2 19
Pension Settlement Charges, pre-tax 4 4
Income Taxes related to Operating Earnings (non-GAAP)
reconciling items (1) (6)
Operating Earnings (non-GAAP) $296 $352 $1,532 $1,565
PSEG Fully Diluted Average Shares Outstanding (in millions) 500 500 500 501
PSEG Power & Other Operating Earnings (non-GAAP) Reconciliation
Three Months Ended Year Ended
Reconciling Items December 31, December 31,
2023 2022 2023 2022
($ millions, Unaudited)
Net Income (Loss) $255 $436 $1,048 $(534)
(Gain) Loss on NDT Fund Related Activity, pre-tax (126) (85) (184) 270
(Gain) Loss on MTM, pre-tax(a) (291) (611) (1,334) 635
Pension Settlement Charges, pre-tax 2 334
Plant Retirements, Dispositions and Impairments, pre-tax(b) 14 31
Lease Related Activity, pre-tax 7 25 7 78
EIP, pre-tax 2 10
Income Taxes related to Operating Earnings (non-GAAP)
reconciling items(c) 126 187 329 (306)
Operating Earnings (non-GAAP) $(25) $(34) $210 $174
PSEG Fully Diluted Average Shares Outstanding (in millions) 500 500 500 501
(a) Includes the financial impact from positions with forward delivery months.
(b) Full year 2022 includes the results for fossil generation sold in February 2022.
(c) Income tax effect calculated at the statutory rate except for qualified NDT related activity, which records an
additional 20% trust tax on income (loss) from qualified NDT Funds, and lease related activity.
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SOURCE PSEG
