Stability has been part of PSEG since the company’s founding in 1903 and remains central to how we conduct business today for our customers, investors, communities and employees. Over PSEG’s 120-year history, our company has become a fixture for those who rely on us to safely deliver the services that power their lives and businesses and keep their homes comfortable.

Ralph LaRossa

Chair of the Board, President and Chief Executive Officer

I have seen firsthand what our commitment to stability means for the communities we serve. I saw it in the days after 9/11, when our employees immediately went back to work in uncertain times and during the 2003 Northeast blackout when we not only restored power quickly and safely but subsequently rebuilt our transmission system. I saw it during our response to Superstorm Sandy and the subsequent hardening of our grid and during our steadfast delivery of essential services during the pandemic. And I know we will provide that same stability as we execute on our Powering Progress vision for a future where people use less energy, and it’s cleaner, safer and delivered more reliably than ever.

With a sharp focus, we maintain our reputation for dependability and predictability while also pursuing growth and adaptability for stakeholders including customers, the communities we serve, employees and you, our investors. We are sticking to the guiding principles of operational excellence, financial strength and making disciplined investments that prioritize consistency for our company. We are continuing to pursue our goal of net-zero emissions by 2030. And, we will continue rolling up our sleeves to deliver the affordable and reliable services customers count on.

This means that PSEG is working to provide sustainable earnings and dividend growth for our shareholders, pursue clean and affordable energy solutions for our customers, provide career development opportunities to our employees, and bring practical decarbonization pathways to our communities.

PSEG’s focus on stability and predictability has led to several strategic decisions over the past two years, including the sale of our 6,750 megawatt (MW) fossil portfolio, the decision to sell our equity stake in the Ocean Wind 1 project, and most recently, our decision to retain our nuclear generating assets following the passage of the Inflation Reduction Act of 2022.

Our efforts are paying off. Even as global challenges like inflation and supply chain disruptions created economic impacts in 2022, PSEG successfully adapted and continued on a stable path. In 2022, we increased our shareholder dividend rate by 5.9% and increased the regulated contribution to consolidated earnings. PSEG is poised to continue investing for growth at PSE&G, our regulated utility that contributes approximately 90% of our consolidated non-GAAP earnings, and to consider potential opportunities to invest in nuclear and low-carbon energy technologies.

Moving forward, our utility efforts will continue the Gas System Modernization Program that updates aged and inefficient cast iron mains with more durable plastic, increasing efficiency and building for the future. Continuing this effort will have multiple benefits including reducing methane leaks, accelerating the timetable of a critical infrastructure replacement and supporting union jobs for our workforce.

This year, we will continue striving for top tier utility performance from PSE&G. We have been recognized for our efforts by achieving the number one rankings in customer satisfaction for both Residential Electric and Natural Gas Service in the East among Large Utilities in the J.D. Power 2022 U.S. Electric Utility Residential Customer Satisfaction Study and 2022 U.S. Gas Utility Residential Customer Satisfaction Study. In addition, PSE&G was honored with the 2022 Edison Award from the Edison Electric Institute, the electric utility industry’s highest honor, in recognition of our industry-leading work to protect New Jersey communities and customers from the impacts of extreme weather conditions.

We are doing all of this as we continue our work on environmental stewardship, social responsibility and ethical corporate governance (ESG), an area where we have been nationally recognized. Our business decisions allow us to pursue ESG and sustainability while enabling growth and consistent and efficient delivery for our customers.

With the global energy conversation’s shift to decarbonization, building more sustainable, low-carbon power systems and an increasing push for electrification, this is an inflection point for our industry as a whole—one that we embrace and support. PSEG’s focus remains on expanding nuclear and clean energy, making our delivery systems as safe and efficient as possible, and, importantly, on electrifying the transportation sector, the number one source of national greenhouse gas emissions.

At PSEG we are proud to be at the forefront of these changes and encourage others in our sector to take action with the future in mind.

I firmly believe that our combination of attributes – a reliable utility, a generation fleet on the path to a carbon-free future, clean energy growth opportunities, and a commitment to the principles of ESG – provide a compelling investment proposition aligned with the increased focus on sustainability and the decarbonization transition.

I would like to take this opportunity to thank our former Chair, President and CEO Ralph Izzo for his 30 years of service and 15 years of leadership at PSEG. His commitment to building a better future by solidifying our regulated foundation has positioned PSEG to chart the course we are on today.

Thank you to our shareholders for your ongoing loyalty and support as we continue on this journey. We couldn’t be more proud of where we are going and will continue to work hard every day to maintain your confidence and trust.

Sincerely,

Ralph A. LaRossa
Chair of the Board, President and Chief Executive Officer

Public Service Enterprise Group
February 21, 2023