UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

FOR THE QUARTERLY PERIOD ENDED March 31, 2023

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

FOR THE TRANSITION PERIOD FROM          TO

Commission File Number	Name of Registrant, Address, and Telephone Number			State or other jurisdiction of Incorporation or Organization	I.R.S. Employer Identification  Number
001-09120	Public Service Enterprise Group Incorporated			New Jersey	22-2625848
	80 Park Plaza
	Newark,	New Jersey	07102
	973	430-7000
001-00973	Public Service Electric and Gas Company			New Jersey	22-1212800
	80 Park Plaza
	Newark,	New Jersey	07102
	973	430-7000

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

Title of Each Class	Trading Symbol(s)	Name of Each Exchange On Which Registered
Public Service Enterprise Group Incorporated
Common Stock without par value	PEG	New York Stock Exchange
Public Service Electric and Gas Company
8.00% First and Refunding Mortgage Bonds, due 2037	PEG37D	New York Stock Exchange
5.00% First and Refunding Mortgage Bonds, due 2037	PEG37J	New York Stock Exchange

Indicate by check mark whether the registrants (1) have filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrants were required to file such reports), and (2) have been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrants have submitted electronically every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrants were required to submit such files). Yes ☒ No ☐

Indicate by check mark whether each registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Public Service Enterprise Group Incorporated	Large accelerated filer	☒	Accelerated filer	☐	Non-accelerated filer	☐	Smaller reporting company	☐	Emerging growth company	☐
Public Service Electric and Gas Company	Large accelerated filer	☐	Accelerated filer	☐	Non-accelerated filer	☒	Smaller reporting company	☐	Emerging growth company	☐

(Cover continued on next page)

(Cover continued from previous page)

If any of the registrants is an emerging growth company, indicate by check mark if such registrant has elected not to use

the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether any of the registrants is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of April 18, 2023, Public Service Enterprise Group Incorporated had outstanding 498,965,138 shares of its sole class of Common Stock, without par value.

As of April 18, 2023, Public Service Electric and Gas Company had issued and outstanding 132,450,344 shares of Common Stock, without nominal or par value, all of which were privately held, beneficially and of record, by Public Service Enterprise Group Incorporated.

Public Service Electric and Gas Company is a wholly owned subsidiary of Public Service Enterprise Group Incorporated and meets the conditions set forth in General Instruction H(1) of Form 10-Q. Public Service Electric and Gas Company is filing its Quarterly Report on Form 10-Q with the reduced disclosure format authorized by General Instruction H.

		Page
FORWARD-LOOKING STATEMENTS		ii
FILING FORMAT		iii
PART I. FINANCIAL INFORMATION
Item 1.	Financial Statements
	Public Service Enterprise Group Incorporated	1
	Public Service Electric and Gas Company	7
	Notes to Condensed Consolidated Financial Statements
	Note 1. Organization, Basis of Presentation and Significant Accounting Policies	13
	Note 2. Revenues	14
	Note 3. Early Plant Retirements/Asset Dispositions and Impairments	18
	Note 4. Variable Interest Entities (VIEs)	19
	Note 5. Rate Filings	20
	Note 6. Leases	21
	Note 7. Financing Receivables	21
	Note 8. Trust Investments	23
	Note 9. Pension and Other Postretirement Benefits (OPEB)	28
	Note 10. Commitments and Contingent Liabilities	29
	Note 11. Debt and Credit Facilities	35
	Note 12. Financial Risk Management Activities	37
	Note 13. Fair Value Measurements	41
	Note 14. Other Income (Deductions)	45
	Note 15. Income Taxes	46
	Note 16. Accumulated Other Comprehensive Income (Loss), Net of Tax	47
	Note 17. Earnings Per Share (EPS) and Dividends	49
	Note 18. Financial Information by Business Segment	49
	Note 19. Related-Party Transactions	51
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	52
	Executive Overview of 2023 and Future Outlook	52
	Results of Operations	58
	Liquidity and Capital Resources	61
	Capital Requirements	63
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	63
Item 4.	Controls and Procedures	64
PART II. OTHER INFORMATION
Item 1.	Legal Proceedings	65
Item 1A.	Risk Factors	65
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	65
Item 5.	Other Information	66
Item 6.	Exhibits	68
	Signatures	69

i

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 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:

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

•the impact of the coronavirus pandemic;

•failure to attract and retain a qualified workforce;

•inflation, including increases in the costs of equipment, materials, fuel 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;

•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 and purchase of nuclear fuel;

•any inability to meet our commitments under forward sale obligations and Regional Transmission Organization rules;

•reliance on transmission facilities to maintain adequate transmission capacity for our nuclear generation fleet;

•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;

ii

•our ability to advocate for and our receipt of appropriate regulatory guidance to ensure long-term support for our nuclear fleet;

•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 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 at https://investor.pseg.com/resources/email-alerts/default.aspx. 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 Form 10-Q.

FILING FORMAT

This combined Quarterly Report on Form 10-Q is separately filed by Public Service Enterprise Group Incorporated (PSEG) and Public Service Electric and Gas Company (PSE&G). Information relating to any individual company is filed by such company on its own behalf. PSE&G is only responsible for information about itself and its subsidiaries.

Discussions throughout the document refer to PSEG and its direct operating subsidiaries. Depending on the context of each section, references to “we,” “us,” and “our” relate to PSEG or to the specific company or companies being discussed.

iii

PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Millions, except per share data

(Unaudited)

	Three Months Ended
	March 31,
	2023		2022
OPERATING REVENUES	$	3,755	$	2,313
OPERATING EXPENSES
Energy Costs	1,082		1,245
Operation and Maintenance	743		794
Depreciation and Amortization	282		283
Losses on Asset Dispositions and Impairments	—		43
Total Operating Expenses	2,107		2,365
OPERATING INCOME (LOSS)	1,648		(52)
Income from Equity Method Investments	1		4
Net Gains (Losses) on Trust Investments	46		(68)
Other Income (Deductions)	42		5
Net Non-Operating Pension and Other Postretirement Benefit (OPEB) Credits (Costs)	28		94
Interest Expense	(180)		(137)
INCOME (LOSS) BEFORE INCOME TAXES	1,585		(154)
Income Tax (Expense) Benefit	(298)		152
NET INCOME (LOSS)	$	1,287	$	(2)
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
BASIC	497		501
DILUTED	500		501
NET INCOME (LOSS) PER SHARE:
BASIC	$	2.59	$	0.00
DILUTED	$	2.58	$	0.00

See Notes to Condensed Consolidated Financial Statements.

1

PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

Millions

(Unaudited)

	Three Months Ended
	March 31,
	2023		2022
NET INCOME (LOSS)	$	1,287	$	(2)
Other Comprehensive Income (Loss), net of tax
Unrealized Gains (Losses) on Available-for-Sale Securities, net of tax (expense) benefit of $(17) and $39 for 2023 and 2022, respectively	26		(61)
Unrealized Gains (Losses) on Cash Flow Hedges, net of tax (expense) benefit of $1 and $0 for 2023 and 2022, respectively	(1)		1
Pension/OPEB adjustment, net of tax (expense) benefit of $(2) and $0 for 2023 and 2022, respectively	3		—
Other Comprehensive Income (Loss), net of tax	28		(60)
COMPREHENSIVE INCOME (LOSS)	$	1,315	$	(62)

See Notes to Condensed Consolidated Financial Statements.

2

PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED

CONDENSED CONSOLIDATED BALANCE SHEETS

Millions

(Unaudited)

 

	March 31, 2023		December 31, 2022
ASSETS
CURRENT ASSETS
Cash and Cash Equivalents	$	1,205	$	465
Accounts Receivable, net of allowance of $315 in 2023 and $323 in 2022	1,690		1,944
Tax Receivable	8		79
Unbilled Revenues, net of allowance of $4 in 2023 and $16 in 2022	194		322
Fuel	123		420
Materials and Supplies, net	592		540
Prepayments	101		93
Derivative Contracts	92		18
Regulatory Assets	291		369
Assets Held for Sale	—		20
Other	35		33
Total Current Assets	4,331		4,303
PROPERTY, PLANT AND EQUIPMENT	46,529		45,924
Less: Accumulated Depreciation and Amortization	(10,169)		(9,982)
Net Property, Plant and Equipment	36,360		35,942
NONCURRENT ASSETS
Regulatory Assets	4,546		4,404
Operating Lease Right-of-Use Assets	174		176
Long-Term Investments	597		624
Nuclear Decommissioning Trust (NDT) Fund	2,331		2,230
Long-Term Tax Receivable	—		5
Long-Term Receivable of Variable Interest Entity (VIE)	557		551
Rabbi Trust Fund	190		183
Intangibles	9		14
Derivative Contracts	30		15
Other	284		271
Total Noncurrent Assets	8,718		8,473
TOTAL ASSETS	$	49,409	$	48,718

See Notes to Condensed Consolidated Financial Statements.

3

PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED

CONDENSED CONSOLIDATED BALANCE SHEETS

Millions

(Unaudited)

	March 31, 2023		December 31, 2022
LIABILITIES AND CAPITALIZATION
CURRENT LIABILITIES
Long-Term Debt Due Within One Year	$	1,825	$	1,575
Commercial Paper and Loans	1,250		2,200
Accounts Payable	958		1,271
Derivative Contracts	74		124
Accrued Interest	161		134
Accrued Taxes	98		12
Clean Energy Program	86		145
Obligation to Return Cash Collateral	104		290
Regulatory Liabilities	335		384
Other	557		545
Total Current Liabilities	5,448		6,680
NONCURRENT LIABILITIES
Deferred Income Taxes and Investment Tax Credits (ITC)	6,089		5,725
Regulatory Liabilities	2,190		2,240
Operating Leases	169		169
Asset Retirement Obligations	1,511		1,499
OPEB Costs	404		410
OPEB Costs of Servco	461		455
Accrued Pension Costs	698		705
Accrued Pension Costs of Servco	82		82
Environmental Costs	224		231
Derivative Contracts	12		33
Long-Term Accrued Taxes	59		66
Other	196		199
Total Noncurrent Liabilities	12,095		11,814
COMMITMENTS AND CONTINGENT LIABILITIES (See Note 10)
CAPITALIZATION
LONG-TERM DEBT	17,140		16,495
STOCKHOLDERS’ EQUITY
Common Stock, no par, authorized 1,000 shares; issued, 2023 and 2022—534 shares	5,045		5,065
Treasury Stock, at cost, 2023 and 2022—37 shares	(1,391)		(1,377)
Retained Earnings	11,594		10,591
Accumulated Other Comprehensive Loss	(522)		(550)
Total Stockholders’ Equity	14,726		13,729
Total Capitalization	31,866		30,224
TOTAL LIABILITIES AND CAPITALIZATION	$	49,409	$	48,718

See Notes to Condensed Consolidated Financial Statements.

4

PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Millions (Unaudited)

	Three Months Ended
	March 31,
	2023		2022
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income (Loss)	$	1,287	$	(2)
Adjustments to Reconcile Net Income (Loss) to Net Cash Flows from Operating Activities:
Depreciation and Amortization	282		283
Amortization of Nuclear Fuel	48		50
Losses on Asset Dispositions and Impairments	—		43
Emission Allowances and Renewable Energy Credit (REC) Compliance Accrual	3		28
Provision for Deferred Income Taxes and ITC	213		(331)
Non-Cash Employee Benefit Plan (Credits) Costs	9		(60)
Net Realized and Unrealized (Gains) Losses on Energy Contracts and Other Derivatives	(771)		847
Cost of Removal	(41)		(30)
Net Change in Regulatory Assets and Liabilities	(65)		(122)
Net (Gains) Losses and (Income) Expense from NDT Fund	(58)		54
Net Change in Certain Current Assets and Liabilities:
Tax Receivable	70		1
Accrued Taxes	85		215
Cash Collateral	794		(683)
Obligation to Return Cash Collateral	(186)		205
Other Current Assets and Liabilities	169		20
Employee Benefit Plan Funding and Related Payments	(12)		(6)
Other	10		(40)
Net Cash Provided By (Used In) Operating Activities	1,837		472
CASH FLOWS FROM INVESTING ACTIVITIES
Additions to Property, Plant and Equipment	(739)		(686)
Proceeds from Sales of Trust Investments	402		501
Purchases of Trust Investments	(415)		(510)
Proceeds from Sales of Long-Lived Assets	20		1,890
Other	18		(12)
Net Cash Provided By (Used In) Investing Activities	(714)		1,183
CASH FLOWS FROM FINANCING ACTIVITIES
Net Change in Commercial Paper and Loans	(200)		(593)
Payment of Short-Term Loans	(750)		(1,250)
Issuance of Long-Term Debt	900		1,750
Payments for Share Repurchase Program	—		(500)
Cash Dividends Paid on Common Stock	(284)		(271)
Other	(46)		(12)
Net Cash Provided By (Used In) Financing Activities	(380)		(876)
Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash	743		779
Cash, Cash Equivalents and Restricted Cash at Beginning of Period	511		863
Cash, Cash Equivalents and Restricted Cash at End of Period	$	1,254	$	1,642
Supplemental Disclosure of Cash Flow Information:
Income Taxes Paid (Received)	$	(72)	$	—
Interest Paid, Net of Amounts Capitalized	$	148	$	115
Accrued Property, Plant and Equipment Expenditures	$	333	$	295

See Notes to Condensed Consolidated Financial Statements.

5

PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

Millions

(Unaudited)

	Common Stock			Treasury Stock			Retained Earnings		Accumulated Other Comprehensive Income (Loss)
	Shs.	Amount		Shs.	Amount						Total
Balance as of December 31, 2022	534	$	5,065	(37)	$	(1,377)	$	10,591	$	(550)	$	13,729
Net Income	—	—		—	—		1,287		—		1,287
Other Comprehensive Income (Loss), net of tax (expense) benefit of $(18)	—	—		—	—		—		28		28
Comprehensive Income											1,315
Cash Dividends at $0.57 per share on Common Stock	—	—		—	—		(284)		—		(284)
Other	—	(20)		—	(14)		—		—		(34)
Balance as of March 31, 2023	534	$	5,045	(37)	$	(1,391)	$	11,594	$	(522)	$	14,726
Balance as of December 31, 2021	534	$	5,045	(30)	$	(896)	$	10,639	$	(350)	$	14,438
Net Loss	—	—		—	—		(2)		—		(2)
Other Comprehensive Income (Loss), net of tax (expense) benefit of $39	—	—		—	—		—		(60)		(60)
Comprehensive Loss											(62)
Cash Dividends at $0.54 per share on Common Stock	—	—		—	—		(271)		—		(271)
Payments for Share Repurchase Program	—	(50)		(7)	(450)		—		—		(500)
Other	—	(17)		—	10		—		—		(7)
Balance as of March 31, 2022	534	$	4,978	(37)	$	(1,336)	$	10,366	$	(410)	$	13,598

See Notes to Condensed Consolidated Financial Statements.

6

PUBLIC SERVICE ELECTRIC AND GAS COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Millions

(Unaudited)

	Three Months Ended
	March 31,
	2023		2022
OPERATING REVENUES	$	2,293	$	2,284
OPERATING EXPENSES
Energy Costs	984		968
Operation and Maintenance	460