FORWARD-LOOKING STATEMENT

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2 FORWARD-LOOKING STATEMENT 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 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; any inability to manage our energy obligations with available supply; 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 decommissioning and defined benefit plan trust fund investments and changes in funding requirements; changes in state and federal legislation and regulations; the impact of pending rate case proceedings; regulatory, financial, environmental, health and safety risks associated with our ownership and operation of nuclear facilities; adverse changes in energy industry laws, policies and regulations, including market structures and transmission planning; changes in federal and state environmental regulations and enforcement; delays in receipt of, or an inability to receive, necessary licenses and permits; 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 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 or construct generation, transmission and distribution projects; any equipment failures, accidents, severe weather events or other incidents 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 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 terrorism, 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 the date specified. 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. 2

3 PSEG SHAREHOLDER SERVICES PSEG common stock is listed on the New York Stock Exchange and trades under the ticker symbol PEG. Wells Fargo Shareowner Services (WFSS) serves as PSEG s Transfer Agent, Registrar and Dividend Disbursing Agent for its common stock. WFSS' website, offers downloadable forms, answers to FAQs, online access and transaction processing to shareholders. WFSS' shareholder relations representatives can be reached at between the hours of 8 a.m. and 8 p.m. Eastern time Monday through Friday. An Interactive Voice Response System (IVR) is available 24 hours a day, every day. HISTORICAL FINANCIAL OVERVIEW & IR CONTACT INFO This document is prepared once a year and is available online at Any forward-looking statements included herein represent our estimates and we disclaim any obligation to update the information provided. This Fact Book is intended to be used in conjunction with the annual report and other SEC filings to assist in detailed financial analysis. While this document does include abbreviated financial statements, it is not and is not intended to be a substitute for the more detailed financial statements (including footnotes) found in the Annual Report and other SEC filings. This summary is not intended for use in connection with any sale, offer to sell, or solicitation of any offer to buy securities. Inquiries concerning this summary should be directed to: PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED INVESTOR RELATIONS 80 PARK PLAZA NEWARK, NJ KATHLEEN LALLY CARLOTTA CHAN CATHERINE GOLDA Vice President Investor Relations (973) Kathleen.Lally@pseg.com Manager Investor Relations (973) Carlotta.Chan@pseg.com Administrative Assistant Investor Relations (973) Catherine.Golda@pseg.com TO FOLLOW & CONNECT WITH PSEG VIA SOCIAL MEDIA, CLICK ON THE LINKS BELOW 3

4 GAAP DISCLAIMER PSEG presents Operating Earnings in addition to its Net Income reported in accordance with accounting principles generally accepted in the United States (GAAP). Operating Earnings is a non-gaap financial measure that differs from Net Income. Non-GAAP Operating Earnings exclude the impact of returns (losses) associated with the Nuclear Decommissioning Trust (NDT), Mark-to-Market (MTM) accounting and material one-time items. The last page of this presentation includes a list of items excluded from Net Income to reconcile to non-gaap Operating Earnings with a reference to those slides included on each of the slides where the non-gaap information appears. 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. The presentation of non-gaap Operating Earnings is intended to complement, and should not be considered an alternative to, the presentation of Net Income, 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. These materials and other financial releases can be found on the PSEG website at under the Investors tab. From time to time, PSEG, PSE&G and PSEG Power release important information via postings on their corporate website at Investors and other interested parties are encouraged to visit the corporate website to review new postings. The alerts link at may be used to enroll to receive automatic alerts and/or really simple syndication (RSS) feeds regarding new postings at 4

5 RALPH IZZO CHAIRMAN, PRESIDENT AND CHIEF EXECUTIVE OFFICER A message from the chairman BUILDING AND PRESERVING THE RIGHT ENERGY MIX In 2016, our industry continued to be reshaped by the economics of natural gas, the promise of renewables and our customers evolving expectations. Our company has responded successfully to these market forces by increasing its focus and its investment in our utility and regulated assets, leading PSE&G to an increased percentage of 2016 earnings. At the same time, we have continued to improve the economic efficiency of our PSEG Power portfolio, providing customers with safe, reliable, economic and greener energy in an evolving generation marketplace. I am pleased to report that, in 2016, we made excellent progress toward our business objectives. We delivered strong results in 2016 with full-year non- GAAP earnings at the upper end of our revised guidance and solidly within our initial guidance. Our strong financial position has allowed us to steadily increase our dividend. In February 2017, we raised our indicative annual dividend rate to $1.72 per share from $1.64 per share. This was the 13th increase in our dividend in the last 14 years. We are proud of our track record of having paid dividends for 110 consecutive years. We remain well-positioned to finance our capital program without the need to issue equity, while still having the opportunity for consistent and sustainable growth in our dividend. Our commitment, as always, is to deliver sustainable, long-term value to our customers, our communities, our employees and our shareholders by focusing on three core commitments: operational excellence, financial strength and disciplined investment. Operational Excellence Reliability is the foundation for long-term excellence in the energy industry and PSE&G is recognized as a national leader in this measure. In 2016, PSE&G was named the Mid-Atlantic region s most reliable electric utility for the 15th consecutive year by PA Consulting, an industry-benchmarking group. Reliability at PSEG also means ensuring that our power plants are operating at peak efficiency to provide power when needed, at the most affordable cost to the customer. In October, we announced that our last two coal-burning generating units in New Jersey will be retired on June 1, A few months earlier, we began construction on Sewaren 7, a 540-megawatt dual-fuel combined-cycle natural gas power plant. The $600 million plant is expected to be operational in Progress also continued on construction of a 755-megawatt combined-cycle plant at the Keys Energy Center in Maryland and development of a 485- megawatt facility in Bridgeport, Connecticut. PSE&G s residential gas customers have reaped the benefits of plentiful natural gas supplies with lower prices while we continue to make investments and upgrades to modernize our distribution system. In 2016, PSE&G reduced residential gas rates for the seventh consecutive year. Since 2009, we have reduced residential gas customers bills by about 50 percent, saving the typical customer more than $800 a year. PSE&G also has issued bill credits since 2012 totaling approximately $800 million, or $590 per typical customer. In 2016, we significantly improved our employee safety record, achieving the lowest rate of reportable injuries in our company s history. We continue to be an industry leader in connecting with customers using social media. Among utilities, PSE&G has one of the largest audiences on Twitter, with more than 100,000 followers. PSEG Long Island grew its Facebook audience by 132 percent. PSEG Long Island currently has the lowest rate of customer complaints to the state regulatory agency out of all electric and gas utilities in New York. 5

6 Financial Strength Over time, PSEG has emphasized the importance of financial strength as a key differentiator in our business. We have been proactive in taking a broad range of measures to maintain and further enhance our strong financial position. For several years, we have focused on investments in our utility business and regulated assets. As a result, PSE&G net income grew 13 percent in 2016, adding to a streak of 16 percent annual growth since Today, the utility represents a more substantial share of earnings, and its share is forecast to continue to grow in Growth of the utility is offsetting the challenges in our PSEG Power company, which are primarily due to a changing energy marketplace driven by lower electricity prices. Nevertheless, we continue to find ways to increase the efficiency and performance of PSEG Power assets while lowering costs without compromising safety or reliability. Our strong balance sheet is one key to our financial strength. We continue to maintain a solid financial profile capable of meeting our growth objectives, without diluting our current shareholders through the issuance of new equity. In collaboration with Google, the Environmental Defense Fund and Colorado State University, PSE&G upgraded its leak-detection capabilities to prioritize repairs and significantly reduce methane emissions. We continue to move ahead with our three-year, $1.2 billion Energy Strong program to harden and improve the resiliency of our electric and gas systems. In 2016, we reached another key milepost when we energized the Sewaren Switching Station the first elevated station placed into service as part of Energy Strong. In November, the New Jersey Board of Public Utilities approved a three-year, $80 million extension to PSE&G s Solar 4 All program. This extension of the program allows construction of an additional 33 megawatts of solar farms on landfills and brownfields. Meanwhile, on the non-utility portion of our solar investments, PSEG Power s Solar Source portfolio doubled in size during 2016, bringing its total operating capacity to 326 megawatts in 13 states, with another 70 MW under construction. PSE&G continues to invest in energy efficiency as a key to realizing a sustainable energy future. In 2016, we were presented with an Association of Energy Service Professionals award for installing energy efficiency measures in multifamily housing. Disciplined Investment Our five-year capital investment program stands at approximately $15 billion, with regulated utility investments representing more than 80 percent of our planned capital expenditures. In 2016, we continued progress in our three-year, $905 million Gas System Modernization Program, moving forward with the replacement of our aging system of cast-iron and unprotected steel gas mains. We continue to benefit from having two complementary businesses. In PSE&G, we have a leading electric and gas utility that continues to see growth, and has been expanding its investments in projects that focus on meeting customer needs and market conditions by providing reliable, efficient and clean energy at an attractive return. And in PSEG Power, we have a competitive generation business with a strong focus on getting the most value from its diverse, low-cost and environmentally advantaged assets. 6

7 These two businesses have provided for consistently strong results by our company. providing training and employment opportunities to veterans. Embracing Change In the coming year, we expect to continue our leadership role in the energy industry while navigating an everchanging marketplace. Building on Good, Strong Values PSEG s core values starting with fundamental commitments to safety and integrity continue to guide our company. Our success for more than a century has been based on putting our energy to work for the greater benefit of our customers, our shareholders and the larger society around us. It is a particular point of pride that, in 2016, PSEG was named to the first-ever Forbes Just 100 list of companies celebrated for their commitment as strong corporate citizens. PSEG was recognized for its success in creating jobs, conducting business in an ethical manner, providing competitive retirement and health benefits, and caring about the communities in which it operates. PSEG also was named for the ninth consecutive year to the Dow Jones Sustainability North America Index, which recognizes companies for their commitment to economic, environmental and social responsibility. Energy markets continue to evolve in response to the persistence of low-priced natural gas. We are meeting these challenges with increased investments in our regulated utility and extended cost-efficiencies for our PSEG Power assets, while delivering the benefits of low priced natural gas to our customers. This year, we intend to invest $4.7 billion to enhance the efficiency and reliability of our businesses at PSE&G and PSEG Power a record amount for PSEG to invest in any one year while meeting our commitments to provide safe, clean and affordable energy. We continue to monitor the effects of low natural gas prices on the revenues of our nuclear generating facilities at Salem and Hope Creek, which are critically important to the state of New Jersey. Our management team is committed to the continued implementation of disciplined cost control at these facilities and will continue to advocate for policies that recognize nuclear power as a source of clean energy and an important part of a diverse, reliable energy portfolio. We also expect to seek approval of new investments in energy efficiency and electric vehicles, and are working to file documents for a distribution base rate case at PSE&G by November PSEG also continues to be honored as a top employer, particularly for military veterans. Victory Media named the company one of the top employers in the U.S. for 7

8 The rate of change in our business is increasing. Throughout this evolution, we are able to keep pace thanks, in large part, to the commitment of our dedicated workforce. I continue to be grateful for their efforts and contributions. We remain as dedicated as ever to growing a brighter energy future responsibly, reliably and efficiently. We thank you, our shareholders, for your loyalty and support. We will continue to work hard to maintain your confidence and trust. Sincerely, Ralph Izzo Chairman, President and Chief Executive Officer Public Service Enterprise Group February 27,

9 PSEGPublicServiceEnterpriseGroup NYSE: PEG PSEG EMPLOYEES As of 12/31/2016 PSEG had 13,065 employees within our subsidiaries including 8,161 covered under collective bargaining agreements PSE&G Power PSEG LI Other Non-Union 1,898 1, ,030 Union 5,108 1,549 1,496 8 Total Employees 7,006 2,714 2,307 1,038 PUBLIC SERVICE ENTERPRISE GROUP ORGANIZATION CHART 9

10 TABLEofContents FORWARD LOOKING STATEMENTS 2 SHAREHOLDER SERVICES, IR CONTACTS & SOCIAL MEDIA LINKS 3 GAAP DISCLAIMER 4 MESSAGE FROM PSEG CHAIRMAN, PRESIDENT AND CEO 5 PSEG EMPLOYEES; PSEG ORGANIZATION CHART 9 PUBLIC SERVICE ENTERPRISE GROUP 13 PSEG Financial Highlights 14 PSEG Financial Statements PSEG Common Stock and Dividend Data 19 PSEG Board Of Directors 20 PSEG Executive Officers 21 PUBLIC SERVICE ELECTRIC AND GAS COMPANY 23 Service Territory and Statistics 24 Electric Revenues, Sales and Customers 25 Gas Revenues, Sales and Customers Planned Capital Investment Program 27 Projected Rate Base 2016A-2021E 27 Recovery of Capital Spending Investments 28 Historical Rate Base & Net Income PSE&G Transmission Programs 29 Electric Distribution Investment/Energy Strong Investment 30 PSE&G Gas Distribution & GSMP Investment Program 31 PSE&G Utility-Scale Solar and Energy Efficiency Programs 32 PSE&G Typical Residential Customer Bills; Rate Comparisons 33 PSE&G 2017 NJ Base Rate Case Filing Outline & Policy Directives 34 PSE&G Financial Statements New Jersey Board of Public Utilities Commission Members 39 Federal Energy Regulatory Commission Members 40 PSE&G Executive 40 10

11 PSEG LONG ISLAND & PSEG LONG ISLAND EXECUTIVES PSEG POWER 44 Plant Locations, Portfolio Transformation Time Line 45 PSEG Power Generating Facilities 46 Fuel Diversity and Energy Produced Power Capital Spending Projections New CCGT Capacity in Construction; Impact on Power s Fleet PSEG Power Nuclear Generating Stations 50 Solar Source Project Portfolio Generation Measures 52 Capacity Factors 53 CCGT Availability Factors Natural Gas Sources, Assets and Access 54 PSEG Hedging Update; BGS Auction Information 55 PJM/ISO-NE Capacity Auction Pricing 56 Financial Statements PSEG Power Executives; PSEG Power Glossary of Terms 61 PSEG ADDITIONAL FINANCIAL INFORMATION Proposed Capital Program by Line of Business 64 PSEG Projected Sources & Uses of Cash 65 PSEG Common Dividend E 65 Balance Sheet Metrics and PSEG Credit Ratings 66 PSEG Short-term Liquidity 67 Energy Holdings Leveraged Lease Portfolio 67 PSEG and Subsidiaries -- Long-term Debt Reconciliation of Net Income to Compute Operating Earnings 70 11

12 THE PSEG VISION Being a recognized leader for: PEOPLE PROVIDING SAFE, RELIABLE, ECONOMIC AND GREENER ENERGY 12

13 PSEGPublicServiceEnterpriseGroup Public Service Enterprise Group (PSEG) is a publicly traded (NYSE: PEG) diversified energy company headquartered in New Jersey, and one of the ten largest electric companies in the U.S. Total assets (as of December 31, 2016): $40.1 billion 2016 total annual revenues: $9.1 billion Employees: 13,065 Employees as of December 31, 2016 PSEG celebrated its 100th anniversary in 2003 PSEG has paid a dividend annually since 1907, 2017 marks our 110 th year PSEG is ranked 540 on the 2017 Forbes Global 2000 list PSEG is ranked 306 on the 2017 Fortune 500 list PSEG was named to the Dow Jones Sustainability North America Index for the 9 th consecutive year in 2016 PSEG s principal operating subsidiaries are: Public Service Electric & Gas Company (PSE&G), PSEG Power LLC (PSEG Power) and PSEG Long Island LLC 13

14 PSEGPublicServiceEnterpriseGroup NYSE: PEG We are determined to be a leader in our industry through our commitment to operational excellence, financial strength and disciplined investment. PSEG FINANCIAL HIGHLIGHTS (UNAUDITED) Year Ended December 31, ($ in millions, except per share data) Operating Revenues $9,061 $10,415 $10,886 Net Income* $887 $1,679 $1,518 Reconciling Items $588 ($203) ($118) Operating Earnings (non-gaap)** $1,475 $1,476 $1,400 Per Share (Diluted) EPS from Net Income* $1.75 $3.30 $2.99 EPS from Operating Earnings**(non GAAP) $2.90 $2.91 $2.76 Net Income/(Loss) Contribution by Subsidiary ($ in millions) PSE&G $889 $787 $725 PSEG Power PSEG Enterprise/Other (20) Operating Earnings (non-gaap)** Contribution by Subsidiary ($ in millions) PSE&G $889 $787 $725 PSEG Power PSEG Enterprise/Other Stock Performance Price Per Share High $47.41 $44.45 $43.77 Low Year-End Other Shareholder Information Common Dividend Paid Per Share $1.64 $1.56 $1.48 Book Value Per Share $26.01 $25.86 $24.09 Shares Outstanding (in millions) Debt to Capital (%) Number of Employees 13,065 13,025 12,689 *INCLUDES AFTER-TAX EXPENSES OF $396 MILLION RELATED TO THE EARLY RETIREMENT OF PSEG POWER'S HUDSON AND MERCER GENERATING STATIONS ON JUNE 1, 2017 AND AFTER-TAX CHARGES TOTALING $92 MILLION RELATED TO INVESTMENTS IN NRG REMA, LLC LEVERAGED LEASES IN **SEE ITEMS EXCLUDED FROM NET INCOME/(LOSS) TO RECONCILE TO NON-GAAP OPERATING EARNINGS ON PAGE

15 PSEGPublicServiceEnterpriseGroup NYSE: PEG PSEG CONSOLIDATED STATEMENTS OF OPERATIONS See Notes to Consolidated Financial Statements in PSEG Annual 10-K Report. 15

16 PSEGPublicServiceEnterpriseGroup NYSE: PEG PEG PSEG CONSOLIDATED BALANCE SHEETS See Notes to Consolidated Financial Statements in PSEG Annual 10-K Report. 16

17 PSEGPublicServiceEnterpriseGroup NYSE: PEG PSEG CONSOLIDATED BALANCE SHEETS -- CONTINUED See Notes to Consolidated Financial Statements in PSEG Annual 10-K Report. 17

18 PSEGPublicServiceEnterpriseGroup NYSE: PEG PSEG CONSOLIDATED STATEMENTS OF CASH FLOWS See Notes to Consolidated Financial Statements in PSEG Annual 10-K Report. 18

19 PSEGPublicServiceEnterpriseGroup NYSE: NYSE: PEG PEG PSEG COMMON STOCK AND DIVIDEND DATA The following table indicates the high and low sale prices for our common stock and dividends paid for the periods indicated: Dividend Common Stock High Low Per Share 2017 First Quarter $ $ $ First Quarter $ $ $ 0.41 Second Quarter $ $ $ 0.41 Third Quarter $ $ $ 0.41 Fourth Quarter $ $ $ First Quarter $ $ $ 0.39 Second Quarter $ $ $ 0.39 Third Quarter $ $ $ 0.39 Fourth Quarter $ $ $ 0.39 The graph and table below show a comparison of the five-year cumulative return assuming $100 invested on December 31, 2011, in PSEG common stock and the subsequent reinvestment of quarterly dividends, the S&P Composite Stock Price Index, the Dow Jones Utility Index and the S&P Electric Utilities Index. 5-Year Cumulative Total Comparative Returns - as of December 31, PSEG $ $96.96 $ $ $ $ S&P 500 $ $ $ $ $ $ DJ Utilities $ $ $ $ $ $ S&P Electrics $ $ $ $ $ $

20 PSEGPublicServiceEnterpriseGroup NYSE: PEG BOARD OF DIRECTORS WILLIE A. DEESE. EXECUTIVE VICE PRESIDENT MERCK & CO. ALBERT R. GAMPER, JR. FORMER CHAIRMAN OF THE BOARD AND CHIEF EXECUTIVE OFFICER CIT GROUP, INC. WILLIAM V. HICKEY FORMER CHAIRMAN AND CHIEF EXECUTIVE OFFICER SEALED AIR CORPORATION LEAD DIRECTOR RALPH IZZO CHAIRMAN OF THE BOARD, PRESIDENT AND CHIEF EXECUTIVE OFFICER PUBLIC SERVICE ENTERPRISE GROUP SHIRLEY ANN JACKSON PRESIDENT - RENSSELAER POLYTECHNIC INSTITUTE DAVID LILLEY FORMER CHAIRMAN OF THE BOARD, PRESIDENT AND CHIEF EXECUTIVE OFFICER CYTEC INDUSTRIES INC. THOMAS A. RENYI FORMER EXECUTIVE CHAIRMAN - THE BANK OF NEW YORK MELLON CORPORATION HAK CHEOL SHIN EXECUTIVE VICE PRESIDENT, INTERNATIONAL OPERATIONS - 3M COMPANY RICHARD J. SWIFT FORMER CHAIRMAN OF THE BOARD, PRESIDENT AND CHIEF EXECUTIVE OFFICER - FOSTER WHEELER LTD. SUSAN TOMASKY FORMER PRESIDENT - AEP TRANSMISSION AMERICAN ELECTRIC POWER CORPORATION ALFRED W. ZOLLAR EXECUTIVE PARTNER SIRIS CAPITAL GROUP, LLC; FORMER GENERAL MANAGER - TIVOLI SOFTWARE, IBM 20

21 EXECUTIVE OFFICERS GROUP RALPH IZZO CHAIRMAN OF THE BOARD, PRESIDENT AND CHIEF EXECUTIVE OFFICER PSEG DANIEL J. CREGG EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER PSEG TAMARA L. LINDE EXECUTIVE VICE PRESIDENT AND GENERAL COUNSEL PSEG RALPH A. LAROSSA PRESIDENT AND CHIEF OPERATING OFFICER PSE&G WILLIAM LEVIS PRESIDENT AND CHIEF OPERATING OFFICER PSEG POWER DEREK M. DIRISIO PRESIDENT PSEG SERVICES PETER P. SENA III PRESIDENT PSEG NUCLEAR SHAHID MALIK PRESIDENT PSEG ENERGY RESOURCES & TRADE MARGARET M. PEGO SENIOR VICE PRESIDENT HUMAN RESOURCES AND CHIEF HUMAN RESOURCES OFFICER PSEG SERVICES CORPORATION 21

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23 PSE&GPublicServiceElectric&Gas Public Service Electric & Gas Company (PSE&G) is a regulated public utility company engaged in the transmission and distribution of gas and electricity. One of the largest combined electric and gas companies in the United States, PSE&G is also New Jersey s oldest and largest publicly-owned utility. The Public Service Corporation was formed in 1903 by amalgamating more than 400 gas, electric and transportation companies in New Jersey; it was renamed Public Service Electric and Gas Company in PSE&G currently serves nearly three quarters of New Jersey s population in a service area consisting of a 2,600- square-mile diagonal corridor across the state from Bergen to Gloucester Counties. PSE&G is the largest provider of gas and electric service, servicing 1.8 million gas customers and 2.2 million electric customers in more than 300 urban, suburban and rural communities, including New Jersey s six largest cities. In 2016, PSE&G invested over $2.8 billion primarily for transmission and distribution system reliability and resiliency. The Smart Electric Power Alliance (SEPA) named Public Service Enterprise Group its 2017 Investor Owned Utility of the Year. ReliabilityOne has recognized PSE&G as the most reliable electric utility in the Mid-Atlantic region for the 15 th consecutive year in

24 PSE&GPublicServiceElectric&Gas SERVICE TERRITORY AND STATISTICS PSE&G is the largest electric and gas distribution and transmission utility, the largest investor in renewable and energy efficiency, and the largest HVAC and service contract provider in New Jersey PSE&G has received the prestigious ReliabilityOne Award for the Mid-Atlantic region for 15 years in a row. Solid regulatory relationships on traditional utility matters. New Jersey is ranked 3 rd nationally in personal income per capita. 1 Sales Statistics (All information is as of December 31, 2016) 2016 Sales Mix Residential Commercial Industrial 2016 Peak Load Electric 33% 58% 9% ~9,800 MW Gas 59% 37% 4% -- Transmission Statistics Electric Transmission Network Circuit Miles Base Return on Equity YE Rate Base 1, % $6.7B Electric and Gas Distribution Statistics Network Miles/Solar MW Installed Base Return on Equity 2016 YE Rate Base Electric Distribution 22, % $7.9B Gas Distribution 18,000 to 10.3% Solar & EE Assets 123MW DC $0.6B Number of Customers December 31, 2016 Electric Sales /Gas Sold & Transported Historic Annual Load Growth Projected Annual Load Growth E 3 Electric 2.2 Million 41,580 GWh (0.4)% 0.3% Gas 1.8 Million 2,360 Million Therms 4 0.7% 0.7% BUREAU OF ECONOMIC ANALYSIS REPORT 2 FERC ROE IS COMPRISED OF A BASE 11.18% PLUS A 0.50% ADDER FOR PARTICIPATION IN A REGIONAL TRANSMISSION ORGANIZATION (RTO). CERTAIN PSE&G PROJECTS ALSO HAVE VARIOUS ROE ADDERS APPROVED BY THE FERC TO PROMOTE TRANSMISSION INFRASTURE DEVELOPMENT. 3 ESTIMATED ANNUAL GROWTH PER YEAR, ASSUMES NORMAL WEATHER 4 GAS FIRM SALES ONLY. B = $ BILLION; E = ESTIMATE; M = MILLION; MW = MEGAWATTS 24

25 PSE&GPublicServiceElectric&Gas PSE&G RETAIL REVENUES AND SALES ELECTRIC (UNAUDITED) Electric Revenues ($Millions) Year Ended December 31, Rate of Growth Residential $2,065 $2,178 $2,055 $2,081 $2, % Commercial & Industrial 1,647 2,001 2,052 2,031 2, % Street Lighting % Other Operating Revenues* % Total Electric Revenues $4,460 $4,842 $4,684 $4,607 $4, % Electric Sales (Millions kwh) Rate of Growth Residential 13,706 13,675 13,081 13,490 13, % Commercial & Industrial 27,538 27,706 27,329 27,457 27, % Street Lighting % Interdepartmental % Total Electric Sales 41,590 41,725 40,747 41,286 41, % Electric Customers (Annual Average) Rate of Growth Residential 1,915,631 1,902,747 1,889,550 1,883,278 1,871, % Commercial & Industrial 303, , , , , % Street Lighting 10,436 10,229 10,214 10,166 10, % Total Electric Customers 2,229,539 2,216,318 2,201,078 2,194,066 2,180, % *PRIMARILY SALES OF NON-UTILITY GENERATOR ENERGY TO PJM AND TRANSMISSION RELATED REVENUES. NOTE: NUMBERS MAY NOT SUM DUE TO ROUNDING. 25

26 PSE&GPublicServiceElectric&Gas PSE&G RETAIL REVENUES AND SALES GAS SOLD & TRANSPORTED (UNAUDITED) Year Ended December 31, Gas Revenues ($Millions) Rate of Growth Residential $362 $308 $491 $536 $ % Commercial & Industrial - Firm % Non-Firm Sales % Other Operating Revenues * % Total Revenues ** $757 $755 $1,018 $993 $1, % Gas Transported ** $1,004 $1,039 $1,064 $1,055 $ % Sales (Million Therms) Rate of Growth Residential 1,394 1,497 1,573 1,441 1, % Commercial & Industrial-Firm 966 1,026 1, % Total Firm Sales 2,360 2,523 2,628 2,412 2, % Comm & Indus - Non-Firm Sales 1,888 2,054 2,467 1,400 1, % Total Sales *** 4,248 4,577 5,095 3,812 3, % Gas Customers (Annual Avg) Rate of Growth Residential 1,652,784 1,643,677 1,633,785 1,628,516 1,620, % Commercial 157, , , , , % Industrial 6,372 6,425 6,537 6,628 6, % Street Lighting % Total Gas Customers 1,817,094 1,807,881 1,797,632 1,792,077 1,783, % * PRIMARILY APPLIANCE SERVICE. ** TOTAL REVENUES INCLUDE COMMODITY REVENUE FROM THE SALE OF GAS TO PSE&G S BASIC GAS SUPPLY SERVICE (BGSS) CUSTOMERS AND GAS TRANSPORTED FROM THE DISTRIBUTION OF GAS TO ALL RETAIL CUSTOMERS ON THE PSE&G SYSTEM. ***CSG RATE INCLUDED IN NON-FIRM SALES. NOTE: NUMBERS MAY NOT SUM DUE TO ROUNDING. 26

27 PSE&GPublicServiceElectric&Gas PSE&G E PLANNED CAPITAL INVESTMENT PROGRAM E = ESTIMATE. INCLUDES AFUDC With current returns on ~70% of capital investments PSE&G CAPITAL SPENDING DRIVES HIGH SINGLE-DIGIT GROWTH IN RATE BASE 27

28 PSE&GPublicServiceElectric&Gas DEVELOPING INVESTMENT OPPORTUNITIES WITH NEAR-CONTEMPORANEOUS RECOVERY MECHANISMS E = ESTIMATE. DATA AS OF MARCH INCLUDES AFUDC. DISCIPLINED INVESTMENT DELIVERING ANNUAL GROWTH 28

29 PSE&GPublicServiceElectric&Gas PSE&G TRANSMISSION: ~$6 BILLION, 5 YEAR INVESTMENT PROGRAM FOCUSING ON RELIABILITY AND REPLACING AGING INFRASTRUCTURE Formula rate recovery of capital and expenses PJM s Regional Transmission Expansion Plan (RTEP) identifies system enhancements needed for reliability Portfolio transitioning completing remaining major lines and moving to steady state investments to maintain reliability and stay ahead of asset end of life 69kV system upgrades improve system reliability and add capacity for future growth Transmission Lifecycle to manage asset life and improve system integrity and reliability Transmission Hardening projects focus on increasing system resiliency 29

30 PSE&GPublicServiceElectric&Gas PSE&G ELECTRIC DISTRIBUTION: ~$3 BILLION, 5-YEAR INVESTMENT PROGRAM FOCUSED ON RELIABILITY AND RESILIENCY Energy Strong -- Completion of currently approved program Future growth efforts Hardening Extend program for critical system infrastructure Aging infrastructure Life cycle investments to ensure continued top quartile reliability performance Over 65 substations > 60 years old; Over 30 substations > 80 years old ~115 substations 26kV to 4kV Risk assessment model to eliminate/replace Technology Next generation to enhance grid performance Making the grid smarter Deployment of hundreds of microprocessor relays A new state of the art distribution SCADA system to facilitate full communication and control Ability to integrate Distributed Energy Resources into the grid while enhancing grid reliability and resiliency Improving customer service - continue to enhance delivery of information and communication PSE&G IS SUCCESSFULLY EXECUTING ON ITS $1.22 BILLION ENERGY STRONG PROGRAM TO ADDRESS SYSTEM RESILIENCY AND HARDENING Program Approved Spend thru 12/30/16 Flood Mitigation $620M $310M Electric Contingency Reconfiguration $100M $79M Electric Advanced Technologies $100M $99M Gas Utilization Pressure Cast Iron (UPCI) $350M $370M Gas Metering & Regulating (M&R) Station Flood Mitigation $50M $20M Total Energy Strong Capex $1,220M $878M 30

31 PSE&GPublicServiceElectric&Gas PSE&G GAS DISTRIBUTION: ~$3 BILLION, 5-YEAR INVESTMENT PROGRAM FOCUSED ON MODERNIZING AND UPGRADING CAST IRON AND UNPROTECTED STEEL MAIN PSE&G Gas System Modernization Program (GSMP) maximizes cost efficiency with a broad replacement approach Customer service Converts large areas of low pressure to high pressure service Installs excess flow valve (EFV) safety devices Higher pressure system allows PSE&G gas customers to use high efficiency appliances Environmental Collaboration with EDF and Google to consider methane leaks in work prioritization Methane emission reduction is estimated at 24,500 metric tons of CO2 equivalent per year* Replaces highest risk, most leak prone facilities Replaced >200 miles in exceeding run rate of the 30-year program and demonstrating ability to accelerate GSMP 30-Year Program run rate replaces ~160 miles of main per year ~4,800 miles of cast iron and unprotected steel main remaining in the system PSE&G has the largest cast iron gas distribution system of any US utility WHAT IS GSMP? A multi-year Infrastructure Program to replace old cast iron and unprotected steel pipes with strong, durable plastic piping The 1 st phase of a long-term, 30-year replacement plan $905 Million infrastructure investment over 3 year period Authorized 9.75% ROE Enhances system safety Better supports use of high efficiency appliances Reduces fugitive methane and leaks Improves reliability Directly creates and supports 500 NJ jobs Clause based recovery * EPA SUBPART W METHODOLOGY. 31

32 PSE&GPublicServiceElectric&Gas PSE&G SOLAR AND ENERGY EFFICIENCY -- $250 MILLION, 5 YEAR INVESTMENT SUPPORTS NEW JERSEY POLICY OBJECTIVES PSE&G s renewable energy initiatives have helped make New Jersey among the top ten states in terms of installed solar generating capacity and New Jersey ranks first in the concentration of solar power (installations per square mile). Grid-connected solar developed on landfills and brownfields provides clean energy for all customers through the utility s Solar 4 All program. PSE&G s solar and energy efficiency programs continue to create jobs, spur economic activity and help New Jersey meet its renewable energy goals. The Smart Electric Power Alliance (SEPA) named Public Service Electric & Gas its 2017 Investor Owned Utility of the Year, recognizing PSE&G for its ongoing commitment to increasing the amount of solar power in NJ and specifically lauded its Solar 4 All program. Energy Efficiency Continuing programs with a focus on hospitals, multi-family housing and our Direct Install program which includes municipalities, non-profits and small businesses in Urban Enterprise Zones. As of year-end 2016, PSE&G had 227 GWh (electric) and 7.5 MTherms (gas) of Energy Efficiency solutions installed throughout our service area. Solar 4 All is our 158 megawatt DC (MW DC ) program that utilizes rooftops, solar farms, utility poles and landfills/brownfields for large-scale, grid connected solar projects. The revenue PSE&G receives from the sale of Solar 4 All electricity and capacity, the sale of the solar credits (SRECs) and the federal investment tax credit (ITC) realized is returned to customers by offsetting the overall cost of the Solar 4 All program. The Solar Loan program is the second piece of PSE&G s solar development strategy. PSE&G s program has made approximately $259 million of financing available through year-end 2016 to help homeowners and businesses develop more than 1,000 solar installations (>90 MW of solar capacity). The loans generally finance up to 50% of the total cost of the solar installation and can be repaid using solar renewable energy credits (SRECs), which are generated by the solar installation. $857 Million Invested in Solar PSE&G INVESTMENTS IN SOLAR Renewables Program In Service Total MW Program Plan Total Investment Solar Loan I, II, III 90 MW 178 MW $259 Million Solar 4 All & Extension 123 MW 158 MW $598 Million ALL DATA AS OF YEAR-END ALL SOLAR MEGAWATTS (MW) ARE QUOTED IN MW DC. 32

33 PSE&GPublicServiceElectric&Gas MANAGING TOTAL COST TO CUSTOMERS WHILE INVESTING IN THE SYSTEM PSE&G Typical Residential Customer Bills * *FOR ALL YEARS THE BILLING ASSUMES 7,200 KWH FOR ELECTRIC AND 1,010 THERMS FOR GAS ANNUALLY. E = ESTIMATE CUSTOMER S BILLS ARE MATERIALLY LOWER, SUPPORTING NEEDED INVESTMENT IN THE SYSTEM *FOR ALL YEARS THE BILLING ASSUMES 7,200 KWH FOR ELECTRIC AND 1,010 THERMS FOR GAS ANNUALLY. E = ESTIMATE ** COMPARED AGAINST 12 REGIONAL UTILITIES AS OF SEPTEMBER 1, 2016, FOR A CUSTOMER THAT USES 500 KILOWATT-HOURS AND 100 THERMS IN A MONTH. 33

34 PSE&GPublicServiceElectric&Gas DISTRIBUTION 2017 BASE RATE CASE FILING Supports need for moderate base rate increase PSE&G INVESTMENT EVOLUTION REFLECTS SYSTEM NEEDS, CUSTOMER EXPECTATIONS AND PUBLIC POLICY OBJECTIVES 34

35 PSE&GPublicServiceElectric&Gas PSE&G CONSOLIDATED STATEMENTS OF OPERATIONS See Notes to Consolidated Financial Statements in PSEG Annual 10-K Report. 35

36 PSE&GPublicServiceElectric&Gas PSE&G CONSOLIDATED BALANCE SHEETS See Notes to Consolidated Financial Statements in PSEG Annual 10-K Report. 36

37 PSE&GPublicServiceElectric&Gas PSE&G CONSOLIDATED BALANCE SHEETS - CONTINUED See Notes to Consolidated Financial Statements in PSEG Annual 10-K Report. 37

38 PSE&GPublicServiceElectric&Gas PSE&G CONSOLIDATED STATEMENTS OF CASH FLOWS PUBLIC SERVICE ELECTRIC AND GAS COMPANY CONSOLIDATED STATEMENTS OF CASH FLOWS Millions Years Ended December 31, CASH FLOWS FROM OPERATING ACTIVITIES Net Income $ 889 $ 787 $ 725 Adjustments to Reconcile Net Income to Net Cash Flows from Operating Activities: Depreciation and Amortization Provision for Deferred Income Taxes and ITC Non-Cash Employee Benefit Plan Costs Cost of Removal (131) (120) (98) Net Change in Other Regulatory Assets and Liabilities (138) (48) 187 Net Change in Certain Current Assets and Liabilities: Accounts Receivable and Unbilled Revenues (84) Materials and Supplies (7) (15) (18) Prepayments (18) Accounts Payable (29) 45 (3) Accounts Receivable/Payable-Affiliated Companies, net 199 (167) Other Current Assets and Liabilities 8 (29) 6 Employee Benefit Plan Funding and Related Payments (82) (91) (83) Other (48) 47 (4) Net Cash Provided By (Used In) Operating Activities 1,894 2,125 1,833 CASH FLOWS FROM INVESTING ACTIVITIES Additions to Property, Plant and Equipment (2,816) (2,692) (2,164) Proceeds from Sales of Available-for-Sale Securities Investments in Available-for-Sale Securities (24) (22) (101) Solar Loan Investments Other Net Cash Provided By (Used In) Investing Activities (2,789) (2,671) (2,155) CASH FLOWS FROM FINANCING ACTIVITIES Net Change in Short-Term Debt (153) 153 (60) Issuance of Long-Term Debt 1, ,250 Redemption of Long-Term Debt (271) (300) (500) Redemption of Securitization Debt (259) (237) Contributed Capital Other (14) (10) (14) Net Cash Provided By (Used In) Financing Activities 1, Net Increase (Decrease) in Cash and Cash Equivalents 192 (112) Cash and Cash Equivalents at Beginning of Period Cash and Cash Equivalents at End of Period $ 390 $ 198 $ 310 Supplemental Disclosure of Cash Flow Information: Income Taxes Paid (Received) $ (295) $ (28) $ 283 Interest Paid, Net of Amounts Capitalized $ 273 $ 261 $ 259 Accrued Property, Plant and Equipment Expenditures $ 420 $ 396 $ 292 See Notes to Consolidated Financial Statements in PSEG Annual 10-K Report. 38

39 PSE&GPublicServiceElectric&Gas NEW JERSEY BOARD OF PUBLIC UTILITIES The Board of Public Utilities (BPU) is a regulatory authority with a statutory mandate to ensure safe, adequate, and proper utility services at reasonable rates for customers in New Jersey. The BPU consists of five commissioners appointed by the Governor of New Jersey. These appointees are confirmed by the NJ Senate for six-year, staggered terms. The Governor appoints one of the five to serve as Commission President. RICHARD S. MROZ PRESIDENT REPUBLICAN UPENDRA J. CHIVUKULA COMMISSIONER DEMOCRAT JOSEPH L. FIORDALISO COMMISSIONER DEMOCRAT MARY-ANNA HOLDEN COMMISSIONER REPUBLICAN DIANNE SOLOMON COMMISSIONER REPUBLICAN The website of the New Jersey Board of Public Utilities is: 39

40 PSE&GPublicServiceElectric&Gas FEDERAL ENERGY REGULATORY COMMISSION The Federal Energy Regulatory Commission, or FERC, is an independent agency that regulates the interstate transmission of electricity, natural gas, and oil. The Commission is composed of up to five commissioners who are appointed by the President of the United States with the advice and consent of the Senate. Commissioners serve five-year terms, and have an equal vote on regulatory matters. CHERYL A. LAFLEUR COMMISSIONER TERM EXPIRES: JUNE 2019 DEMOCRAT COLETTE D. HONORABLE COMMISSIONER TERM EXPIRES: JUNE 2017 DEMOCRAT NOMINATED: NEIL CHATTERJEE COMMISSIONER REPUBLICAN NOMINATED: RICHARD GLICK COMMISSIONER DEMOCRAT NOMINATED: ROBERT POWELSON COMMISSIONER REPUBLICAN The website of the FERC is: PSE&G EXECUTIVE * RALPH A. LAROSSA PRESIDENT AND CHIEF OPERATING OFFICER PSE&G *EFFECTIVE OCTOBER 2, 2017 RALPH LAROSSA HAS BEEN NAMED PRESIDENT OF PSEG POWER; DAVID DALY HAS BEEN NAMED PRESIDENT AND CHIEF OPERATING OFFICER OF PSE&G 40

41 PSEGLongIsland LONG ISLAND Our Mission "To build an industry leading electric service company that places safety first, in all we do, providing our customers across Long Island and the Rockaways with: - Excellent customer service - Best in class electric reliability and storm response - Opportunities for energy efficiency and renewables - Local, caring, and committed employees, dedicated to giving back to their communities" PSEG was selected to operate Long Island Power Authority s (LIPA) electric transmission and distribution system under a 12-year Operating Services Agreement (OSA) that began January 1, In connection with the OSA, PSEG Long Island acts as LIPA s agent in performing many of its obligations. In return, PSEG is reimbursed for pass-through operating expenses, receives a fixed management fee and is eligible to earn incentive fees based on meeting established performance metrics. If PSEG Long Island meets certain performance levels during the initial agreement, the OSA may be extended for an additional eight years. In addition, PSEG Power provides fuel procurement and power management services to LIPA. 41

42 PSEGLongIsland WE PLEDGE TO BUILD A LONG ISLAND UTILITY WITH PSEG'S SAME RECORD OF SERVICE, RELIABILITY AND CUSTOMER SATISFACTION Now in its fourth year of operations, PSEG Long Island continues to improve processes and public perception as we proceed on our journey to becoming a best-in-class electric utility. We have launched major initiatives to transform our call center, storm restoration management system, tree-trimming standards, online My Account platform, and more. We continue to invest in system reliability on LIPA's behalf, including $729 million in FEMAfunded storm-hardening improvements to the most vulnerable circuits and substations. Since funding was secured in 2014, this work has improved more than 80 circuits, covering more than 270 circuit miles, from the Rockaways to Shelter Island. When completed, the FEMA reliability work is planned to cover 1,025 circuit miles across the service territory. PSEG Power also provides fuel procurement and power management services to LIPA: Acting as an agent by performing ISO bidding for its 6,000 MW of generation and tolls; procuring natural gas and oil to fuel their generating assets; scheduling two DC transmission cables into Long Island; and entering into financial hedges to reduce customer s price volatility. The earnings related to these contracts are included in PSEG Power s financial results. PSEG LONG ISLAND EXECUTIVES* RALPH A. LAROSSA CHAIRMAN OF THE BOARD PSEG LONG ISLAND DAVID M. DALY PRESIDENT AND CHIEF OPERATING OFFICER PSEG LONG ISLAND DANIEL EICHHORN VICE PRESIDENT -- CUSTOMER SERVICE PSEG LONG ISLAND *EFFECTIVE OCTOBER 2, 2017 RALPH LAROSSA HAS BEEN NAMED PRESIDENT OF PSEG POWER; DAVID DALY HAS BEEN NAMED PRESIDENT AND CHIEF OPERATING OFFICER (COO) OF PSE&G AND WILL ASSUME THE ROLE OF CHAIRMAN OF PSEG LONG ISLAND; AND DANIEL EICHHORN HAS BEEN NAMED PRESIDENT AND CHIEF OPERATING OFFICER OF PSEG LONG ISLAND. 42

43 AN ENERGY PROVIDER MEETING THE NEEDS OF CUSTOMERS AND SHAREHOLDERS 43

44 PSEGPower A major independent power producer in the U.S., PSEG Power operates one of the most balanced portfolios in the country, both in terms of fuel mix and market segment (base load, load following, and peaking) that helps us generate the power our customers need, when they need it. PSEG Power is also focused on transforming its generating fleet with reliable, efficient and cleaner energy with the construction of 1,800 MW of new gasfired combined cycle generation at three sites targeted to be online in PSEG Fossil operates the company s portfolio of natural gas, coal, and oil-fired electric generating units. PSEG Nuclear operates the Salem and Hope Creek Nuclear Generating Stations in Lower Alloways Creek, NJ and is a part owner of the Peach Bottom Nuclear Generation Station in Delta, PA. PSEG Energy Resources & Trade PSEG Power Ventures COMMITTED TO OPERATIONAL EXCELLENCE: Power remains committed to operational excellence and constantly strives to improve our performance while maintaining a sharp eye on safety. 44

45 PSEGPower PLANT LOCATIONS PSEG Power has generating assets in three competitive markets Major assets located near key load centers Positioned to benefit from market volatility 1,800 MW of efficient, new CCGT capacity under construction in PJM and ISO-NE Additional generation assets: Solar (326 MW DC /257 MW AC ) Kalaeloa, HI (104 MW) *PSEG POWER RETIRED THE HUDSON AND MERCER GENERATING STATIONS ON JUNE 1, PSEGPower PSEGPower POWER IS TRANSFORMING ITS PORTFOLIO TO BE NEWER, MORE EFFICIENT AND FLEXIBLE 45

46 PSEGPower GENERATING FACILITIES (AS OF DECEMBER 31, 2016) NAME LOCATION TOTAL CAPACITY (MW) % OWNED OWNED CAPACITY (MW) PRINCIPAL FUELS USED Steam Hudson (Retired) (A) NJ % 565 Coal/Gas Mercer (Retired) (A) NJ % 632 Coal/Gas Sewaren NJ % 445 Gas Keystone (B) PA 1,711 23% 391 Coal Conemaugh (B) PA 1,711 23% 385 Coal Bridgeport Harbor CT % 383 Coal New Haven Harbor CT % 448 Oil/Gas Total Steam 5,895 3,249 Nuclear Hope Creek NJ 1, % 1,172 Nuclear Salem 1&2 NJ 2,296 57% 1,318 Nuclear Peach Bottom 2&3 (C) PA 2,450 50% 1,225 Nuclear Total Nuclear 5,918 3,715 Combined Cycle Bergen NJ 1, % 1,229 Gas/Oil Linden NJ 1, % 1,230 Gas/Oil Bethlehem NY % 757 Gas Kalaeloa HI % 104 Oil Total Combined Cycle 3,424 3,320 Combustion Turbine Essex NJ % 81 Gas/Oil Kearny NJ % 456 Gas/Oil Burlington NJ % 168 Gas/Oil Linden NJ % 336 Gas/Oil New Haven Harbor CT % 129 Gas/Oil Bridgeport Harbor CT % 17 Oil Total Combustion Turbine 1,187 1,187 Pumped Storage Yards Creek (D) NJ % 210 Total Power Plants 16,844 11,681 (A) IN OCTOBER 2016, POWER DETERMINED THAT IT WOULD CEASE GENERATION OPERATIONS OF THE EXISTING COAL/GAS UNITS AT THE HUDSON AND MERCER GENERATING STATIONS ON JUNE 1, (B) OPERATED BY GENON NORTHEAST MANAGEMENT COMPANY. (C) OPERATED BY EXELON GENERATION. (D) OPERATED BY JERSEY CENTRAL POWER & LIGHT COMPANY. 46

47 PSEGPower PSEG POWER HAS A DIVERSE FLEET OF GENERATING ASSETS WHICH ENABLES IT TO RESPOND TO MARKET NEEDS *EXCLUDES SOLAR AND KALAELOA. **INCLUDES NEW JERSEY UNITS THAT FUEL SWITCH TO GAS. DATA IS AS OF DECEMBER 31, PSEGPower PSEG POWER CAPITAL NEEDS DECLINE FOLLOWING $2 BILLION INVESTMENT IN NEW CAPACITY, ENHANCING FREE CASH FLOW E=ESTIMATE. DATA AS OF MARCH EXCLUDES NUCLEAR FUEL. INCLUDES IDC. 47

48 PSEGPower DEVELOPING 1,800 MW OF NEW, EFFICIENT CCGT CAPACITY IN MD, NJ AND CT KEYS ENERGY CENTER SITE BRIDGEPORT HARBOR 5 SITE SEWAREN 7 SITE Constructing the 755 MW CCGT Keys Energy Center in Maryland (SWMAAC*) at an estimated cost of $825 to $870 million Constructing a new 540 MW CCGT unit, Sewaren 7 in New Jersey (EMAAC*) at a cost of $625 to $675 million which will replace older Sewaren units Constructing a new 485 MW CCGT unit, Bridgeport Harbor 5 (ISO NE), at a cost of $525 to $575 million Both Keys and Sewaren 7 are targeted to be in-service in 2018 and Bridgeport Harbor 5 in 2019 Expanding civic stewardship roles and programs in neighboring communities *SWMAAC = SOUTHWEST/EMAAC = EASTERN MID-ATLANTIC AREA COUNCIL LOCATIONAL DELIVERABILITY AREA WITHIN PJM. PSEGPower PSEG POWER S FLEET TO BE TRANSFORMED WITH ADDITION OF KEYS, SEWAREN 7 AND BRIDGPORT HARBOR IN Projected Fleet Comparison E (1) REFLECTS RETIREMENT OF HUDSON AND MERCER ON JUNE 1, ALL PERIODS EXCLUDE SOLAR (257 MW AC ) CAPACITY AND KALAELOA (104 MW) CAPACITY/ ENERGY PRODUCED. **2016 COAL INCLUDES NEW JERSEY UNITS THAT FUEL SWITCH TO GAS E = ESTIMATE.. 48

49 PSEGPower PSEG POWER S FLEET IS TRANSITIONING TO BECOME MORE EFFICIENT, PRODUCTIVE AND CLEAN * E=ESTIMATE. *EFFICIENCY MEASURED IN BRITISH THERMAL UNITS (BTUS) NEEDED TO GENERATE 1 KWH OF ELECTRICITY. PSEGPower PSEG POWER S FLEET TRANSFORMATION: CLEAN NATURAL GAS & INCREASINGLY MORE FUEL EFFICIENTect Benefits Unit Technology Capacity (MW) (MW) Operating Heat Rate In Serivce Bergen 1CC Siemens /1995 Bergen 2CC GE FA /2002 BEC GE FA /2005 Linden 1CC GE FA /2006 Linden 2CC GE FA /2006 Keys Energy Center Siemens /2018 Sewaren 7 GE HA /2018 Bridgeport Harbor 5 GE HA /2019 Combined Cycle 4, MW Essex 9 GE EA /1990 Linden 7 GE EA /1995 Linden 8 GE EA /1995 Linden 5 GE EA /2000 Linden 6 GE EA /2000 Burlington 12 LM /2000 Kearny 12 LM /2001 Kearny 13 LM /2012 Kearny 14 LM /2012 New Haven 2 LM /2012 New Haven 3 LM /2012 New Haven 4 LM /2012 Peaking Total DATA IS AS OF DECEMBER 31, , , MW MW 49

50 PSEGPower PSEG Nuclear is a critical element of our success Hope Creek Operated by PSEG Nuclear PSEG Ownership: 100% Technology: Boiling Water Reactor Total Capacity: 1,172 MW Owned Capacity: 1,172 MW License Expiration: 2046 Uprate 18 MW Spring 2018 Next Scheduled Refueling Spring 2018 Salem Units 1 and 2 Operated by PSEG Nuclear PSEG Ownership: 57% Technology: Pressurized Water Reactor Total Capacity: 2,296 MW Owned Capacity: 1,318 MW License Expiration: 2036 and 2040 Next Scheduled Refueling Unit 1 Fall 2017 Unit 2 Fall 2018 Peach Bottom Units 2 and 3 Operated by Exelon PSEG Ownership: 50% Technology: Boiling Water Reactor Total Capacity: 2,450 MW Owned Capacity: 1,225 MW License Expiration: 2033 and 2034 Next Scheduled Refueling Unit 2 Fall 2018 Unit 3 Fall 2017 PSEGPower PSEGPower PSEG SOLAR SOURCE A RENEWABLE ENERGY PORTFOLIO WITH LONG TERM CONTRACTED REVENUES Solar Source Portfolio PSEG Solar Source Portfolio Utility scale solar projects in 13 states, in operation or under construction Long-term PPA s with creditworthy counterparties Lump sum, full wrap EPC* agreements Asset Optimization Maintain high equipment availability Minimize operating expenses Seek additional revenue streams *EPC = ENGINEERING PROCUREMENT & CONSTRUCTION. PORTFOLIO CONSISTs OF 326 MW DC /257 MW AC IN OPERATIONS, 70 MW DC /55 MW AC IN CONSTRUCTION. 50

51 PSEGPower PSEG SOLAR SOURCE PORTFOLIO: ~400 MW ACROSS 21 PROJECTS IN 13 STATES ~350 MW OPERATING, 47 MW UNDER CONSTRUCTION & ALL WITH L-T CONTRACTS (AS OF MARCH 31, 2017) Facility MW DC In Service Technology Hackettstown-NJ 2 9/2009 Wyandot-OH 12 5/2010 JEA-FL 15 9/2010 Queen Creek-AZ 25 10/2012 Thin Film/ Fixed Tilt Thin Film/ Fixed Tilt Thin Film/ Fixed Tilt Polycrystalline/ Single Axis Investment ($ millions) Contract/ Counterparty $13 M 15YR PPA/Mars $44 M 20YR PPA/AEP $59 M 30 YR PPA/JEA $75 M 20 YR PPA/SRP PROJECTS UNDER CONSTRUCTION Cork Oak North Carolina (26 MW) COD Q4 2017E Polycrystalline/ Single Axis Investment $40 M 10 YR PPA/ VEPCO Milford-DE 15 12/2012 Badger 1-AZ 19 11/2013 Shasta A&B-CA 2X2 3/2014 Polycrystalline/ Fixed Tilt Polycrystalline/ Single Axis Polycrystalline/ Single Axis $47 M 20 YR PPA/DEMEC $48 M 30 YR PPA/APS $13 M 20 YR PPA/PG&E Sunflower North Carolina (21 MW) COD Q4 2017E Polycrystalline/ Single Axis Investment $35 M 10 YR PPA/ VEPCO Whitcomb-VT 4 10/2014 Polycrystalline/ Fixed Tilt $10 M 25 YR PPA/VEPP Newman-TX 13 12/2014 Polycrystalline/ Single Axis $22 M 30 YR PPA/El Paso Elec Rockfish-MD 13 7/2015 Polycrystalline/ Single Axis $22 M 20 YR PPA/SMECO Columbia-CA 25 10/2015 Polycrystalline/ Fixed Tilt $54M 20 YR PPA/PG&E Whitethorn-CA 4 2/2016 Polycrystalline/ Fixed Tilt $8 M 20 YR PPA/WAPA Meadows-NC 26 6/2016 Thin Film/ Fixed Tilt $41 M 15 YR PPA/VEPCO Bison-CO 36 10/2016 Polycrystalline/ Single Axis $54 M 25 YR PPA/ Platte River PA Pavant II-UT 63 11/2016 Polycrystalline/ Single Axis $104 M 20 YR PPA/PacifiCorp Black Cap-OR 11 12/2016 Polycrystalline/S ingle Axis $21 M 20 YR PPA/PacifiCorp San Isabel-CO 38 12/2016 Polycrystalline/S ingle Axis $60 M 25 YR PPA/Tri-State Turkey Creek-NC 17 2/2017 Monocrystalline/ Single Axis $31 M 10 YR PPA/ VEPCO Hemlock-NC 7 3/2017 Monocrystalline/ Single Axis $12 M 15 YR PPA/ VEPCO *PROJECT SIZE IN MEGAWATTS SHOWN IN DC (DIRECT CURRENT). E = ESTIMATE 51

52 PSEGPower PSEG POWER GENERATION MEASURES* (UNAUDITED) Year Ended December 31, GWHR BREAKDOWN Nuclear Nuclear NJ 18,615 20,084 19,722 Nuclear PA 10,938 9,929 9,386 Total Nuclear 29,553 30,013 29,108 Coal Fossil Coal/Natural Gas NJ** ,421 Fossil Coal PA 4,406 4,681 5,108 Fossil Coal CT Total Coal 4,776 5,809 7,361 Oil & Natural Gas Fossil Oil & Natural Gas NJ 11,955 14,116 12,922 Fossil Oil & Natural Gas NY 5,202 5,153 4,527 Fossil Oil & Natural Gas CT Total Oil & Natural Gas 17,181 19,391 17,693 Total 51,510 55,213 54,162 % GENERATION BY FUEL TYPE Nuclear Nuclear NJ 36% 36% 37% Nuclear PA 21% 18% 17% Total Nuclear 57% 54% 54% Coal Fossil Coal/Natural Gas NJ** 0% 1% 3% Fossil Coal PA 9% 9% 9% Fossil Coal CT 0% 1% 2% Total Coal 9% 11% 14% Oil & Natural Gas Fossil Oil & Natural Gas NJ 24% 26% 24% Fossil Oil & Natural Gas NY 10% 9% 8% Total Oil & Natural Gas 34% 35% 32% Total 100% 100% 100% * EXCLUDES SOLAR AND KALAELOA; **INCLUDES PUMPED STORAGE. 52

53 PSEGPower CAPACITY FACTORS (UNAUDITED) Year Ended December 31, NUCLEAR CAPACITY FACTORS % PS Share Hope Creek Peach Bottom Peach Bottom Salem Salem Total (PS Share)* COAL CAPACITY FACTORS % NJ Coal Hudson Mercer Mercer Total NJ* PA Coal Keystone Keystone Conemaugh Conemaugh Total PA* CT Coal Bridgeport Total CT* Total* *WEIGHTED AVERAGE 53

54 PSEGPower PSEGPower POWER S FOSSIL FLEET MAINTAINS SOLID PERFORMANCE IN A CHALLENGING ENVIRONMENT *EFORd EXCLUDES EVENTS OUTSIDE OF MANAGEMENT CONTROL. PSEGPower PSEG S EXTENSIVE GAS ASSET PORTFOLIO GIVES UNPARALLELED ACCESS TO NORTHEAST SHALE GAS PSEG Power maintains a robust portfolio of pipeline and storage assets Storage capacity of approximately 78 Bcf (in the Gulf and market regions) Firm transportation of 1.3 Bcf/day on seven pipelines PSEG Power s gas for generation was ~100 BCF in 2016, of which >80% was supplied by Northeast shale gas PSEG Power procured over 400 BCF in 2016 with ~50% going to PSE&G s utility gas customers When gas is surplus to customer needs, Off-system sales margins shared with residential customers 54

55 PSEGPower PSEGPower HEDGING STRATEGY DESIGNED TO PROTECT GROSS MARGIN WHILE LEVERAGING THE PORTFOLIO APR-DEC Volume TWh Base Load (Nuclear and Base Load Coal) % Hedged 100% 90-95% 35-40% Price $/MWh $46 $41 $42 Volume TWh Intermediate Coal, Combined Cycle, Peaking % Hedged 65-70% 0% 0% Price $/MWh $ Volume TWh Total % Hedged 85-90% 55-60% 20-25% Price $/MWh $46 $41 $42 HEDGE PERCENTAGES AND PRICES AS OF MARCH 31, UPDATED WITH 2016 BGS AUCTION RESULTS. REVENUES OF FULL REQUIREMENT LOAD DEALS BASED ON CONTRACT PRICE, INCLUDING RENEWABLE ENERGY CREDITS, ANCILLARY, AND TRANSMISSION COMPONENTS BUT EXCLUDING CAPACITY. HEDGES INCLUDE POSITIONS WITH MTM ACCOUNTING TREATMENT AND OPTIONS. PSEGPower BGS AUCTION: PROVIDES OPPORTUNITY TO FORWARD HEDGE OUR GENERATION AND PROTECT OUR POWER BASIS Capacity Load shape Transmission Congestion Ancillary services Risk premium Green 3 Year Average Round the Clock PJM West Forward Energy Price Latest auction reflects a first auction with 100% capacity performance requirement BGS Information: PSEG Power participates in New Jersey s Basic Generation Service auction. The auction, which takes place on an annual basis in February, allows load serving entities to meet electric requirements for customers who do not purchase electric supply from third-party suppliers. Each auction represents one-third of the state s annual supply requirements for the upcoming three-year period. The full contract price consists of the cost of energy priced at the PJM-West hub as well as the cost of other elements required to meet a full service contract, e.g. capacity, transmission, congestion, load shaping. $/MWH; BGS PRICES REFLECT PSE&G ZONE; RESULTS FOR WILL BE THE NEW BLENDED PRICES BEGINNING JUNE 1,

56 PSEGPower PJM S CAPACITY MARKET HAS TRANSITIONED TO RECOGNIZE OPERATING PERFORMANCE AS WELL AS LOCATIONAL VALUE PJM s Reliability Pricing Model (RPM) is based on making capacity commitments three years ahead in an effort to create long-term price signals to attract needed investments to meet reliability requirements in the multi-state PJM region. PJM S RELIABILITY PRICING MODEL (RPM) n EASTERN MAAC n MAAC n DPL SOUTH N REST OF POOL PSEG ZONE PSEG POWER S ASSETS ARE LOCATED IN CONSTRAINED ZONES, WHICH CLEARED AT HIGHER PRICES. FUTURE RPM AUCTIONS TO BE INFLUENCED BY: CHANGE IN NET CONE CHANGE IN PJM PARAMETERS DEMAND RESPONSE RULES REDUCTION IN LOAD FORECAST ENVIRONMENTAL RETIREMENT SOURCE: PSEG POWER PJM S RPM Auction Results Delivery Year ($/MW-day) Power s Average Prices 2016 / / 2018 * / / / 2021 $172 $177 $215 $116 $174 Rest of Pool Prices $59 $120 $165/$150 (CP/BASE) $100/$80 (CP/BASE) $77 (100% CP) Power s Cleared Capacity (MW) 8,700 8,700 8,650 8,900 7,800 ISO New England s Forward Capacity Market Auction Results Power s Average Prices Power s Cleared Capacity (MW) $104 $232 $315 $231 $ ,333 1,333 *PSEG POWER S AVERAGE PRICES AND CLEARED CAPACITY (MW) REFLECT BASE AND INCREMENTAL AUCTIONS. DELIVERY YEARS RUN FROM JUNE 1 TO MAY 31 OF THE NEXT CALENDAR YEAR. + INCLUDES CAPACITY PERFORMANCE (CP) TRANSITION AUCTION RESULTS FOR 16/ 17 AND 17/ 18 AS OF SEPTEMBER 10,

57 PSEGPower PSEG POWER CONSOLIDATED STATEMENTS OF OPERATIONS See Notes to Consolidated Financial Statements in PSEG Annual 10-K Report. 57

58 PSEGPower PSEG POWER CONSOLIDATED BALANCE SHEETS See Notes to Consolidated Financial Statements in PSEG Annual 10-K Report. 58

59 PSEGPower PSEG POWER CONSOLIDATED BALANCE SHEETS -- CONTINUED See Notes to Consolidated Financial Statements in PSEG Annual 10-K Report. 59

60 PSEGPower PSEG POWER CONSOLIDATED STATEMENTS OF CASH FLOWS See Notes to Consolidated Financial Statements in PSEG Annual 10-K Report. 60

61 PSEGPower PSEG POWER EXECUTIVES * WILLIAM LEVIS PRESIDENT AND CHIEF OPERATING OFFICER PSEG POWER SHAHID MALIK PRESIDENT PSEG ENERGY RESOURCES & TRADE PETER P. SENA III PRESIDENT PSEG NUCLEAR & CHIEF NUCLEAR OFFICER *EFFECTIVE OCTOBER 1, 2017 WILLIAM LEVIS WILL RETIRE AS PRESIDENT AND CHIEF OPERATING OFFICER OF PSEG POWER. RALPH LAROSSA,HAS BEEN NAMED PRESIDENT AND CHIEF OPERATING OFFICER OF PSEG POWER, EFFECTIVE OCTOBER 2, PSEG POWER GLOSSARY OF TERMS CP CCGT FERC NRC PJM RPM CAPACITY PERFORMANCE COMBINED CYCLE GAS TURBINE FEDERAL ENERGY REGULATORY COMMISSION U.S. NUCLEAR REGULATORY COMMISSION PJM INTERCONNECTION, L.L.C., A REGIONAL TRANSMISSION ORGANIZATION THAT COORDINATES THE MOVEMENT OF WHOLESALE ELECTRICITY IN ALL OR PARTS OF 13 NORTHEASTERN STATES AND THE DISTRICT OF COLUMBIA. RELIABILITY PRICING MODEL, A PROCESS FOR PRICING GENERATION CAPACITY BASED ON OVERALL SYSTEM RELIABILITY REQUIREMENTS; USING MULTI-YEAR FORWARD AUCTIONS, PARTICIPANTS CAN BID CAPACITY IN THE FORM OF GENERATION, DEMAND RESPONSE, OR TRANSMISSION TO MEET RELIABILITY NEEDS BY LOCATION AND/OR AN ISO MARKET. PLEASE REFER TO THE GLOSSARY OF TERMS BEGINNING ON PAGE 193 OF THE 2016 PSEG ANNUAL 10-K FOR ADDITIONAL TERMS AND DEFINITIONS. 61

62 STRONG FINANCIAL POSITION AND CASH FLOW PROVIDE FLEXIBILITY IN VOLATILE MARKETS 62

63 PSEGPublicServiceEnterpriseGroup ADDITIONAL FINANCIAL INFORMATION E PROJECTED CAPITAL PROGRAM E SOURCES AND USES COMMON DIVIDEND E BALANCE SHEET METRICS CREDIT RATINGS SHORT-TERM LIQUIDITY ENERGY HOLDINGS LEVERAGED LEASE PORTFOLIO LONG-TERM DEBT RECONCILING ITEMS EXCLUDED FROM NET INCOME TO COMPUTE OPERATING EARNINGS 63

64 PSEGPublicServiceEnterpriseGroup Additional Financial Information PSEG POWER AND PSE&G PLANNED CAPITAL SPEND E: POWER S FREE CASH FLOW IMPROVES AS CONSTRUCTION PROGRAM ENDS, PROVIDING FUNDING FOR GROWTH PSEG S 2017E-2021E CAPITAL INVESTMENT PROGRAM IS FOCUSED ON GROWTH E=ESTIMATE. CAPITAL INCLUDES AFUDC AND IDC. 64

65 PSEGPublicServiceEnterpriseGroup Additional Financial Information PSEG CONSOLIDATED 2017E-2021E SOURCES AND USES OF CASH GROWTH IN PSE&G RESULTS IN A MORE REGULATED CASH FLOW PROFILE 1) INCLUDES ISSUANCES, REDEMPTIONS, INTERCOMPANY LENDING, AND TREASURY SHARES. 2) INCLUDES ISSUANCES, REDEMPTIONS, AND CASH POSITION 3) INCLUDES OTHER PSEG NET CASH FLOW. E = ESTIMATE PSEG COMMON DIVIDEND: OPPORTUNITY FOR MEANINGFUL AND SUSTAINABLE DIVIDEND GROWTH PAYOUT RATIO = COMMON DIVIDEND PER SHARE AS A PERCENTAGE OF NON-GAAP OPERATING EARNINGS PER SHARE. E=ESTIMATE. NA=NOT AVAILABLE INDICATIVE ANNUAL COMMON DIVIDEND RATE IS $1.72 PER SHARE. 65

66 PSEGPublicServiceEnterpriseGroup Additional Financial Information YEAR-END BALANCE SHEET METRICS AS OF DECEMBER 31, ($ Billions) Capitalization Subsidiary Debt* PSE&G $6.31 $7.00 $7.82 PSEG Power Parent & Other Total PSEG Debt $8.87 $9.26 $10.59 Subsidiary Equity PSE&G $6.80 $7.60 $8.71 PSEG Power Parent & Other Total PSEG Equity $12.20 $13.10 $13.10 PSE&G Debt to Cap 48% 48% 47% Power Debt to Cap 31% 27% 29% PSEG Debt to Cap 42% 43% 47% *DEBT INCLUDES SHORT TERM DEBT (INCLUDING COMMERCIAL PAPER) AND EXCLUDES NON-RECOURSE AND SECURITIZATION DEBT. SEE SHORT TERM LIQUIDITY SCHEDULE AS OF MARCH 31, 2017 ON PAGE 67 FOR UPDATED INFORMATION ON PSEG CREDIT FACILITIES. PSEG CREDIT RATINGS PSEG MOODY S AS OF MARCH 31, 2017 S&P OUTLOOK POSITIVE STABLE SENIOR NOTES Baa2 BBB COMMERCIAL PAPER P2 A2 PSE&G OUTLOOK STABLE STABLE MORTGAGE BONDS Aa3 A COMMERCIAL PAPER P1 A2 PSEG POWER OUTLOOK STABLE STABLE SENIOR NOTES Baa1 BBB+ NOTE: EACH RATING GIVEN BY AN AGENCY SHOULD BE EVALUATED INDEPENDENTLY OF THE OTHER AGENCIES RATINGS. OUTLOOKS ASSIGNED TO RATINGS ARE AS FOLLOWS: STABLE, NEGATIVE, OR POSITIVE. THERE IS NO ASSURANCE THAT THE RATINGS WILL CONTINUE FOR ANY GIVEN PERIOD OF TIME OR THAT THEY WILL NOT BE REVISED BY THE RATINGS AGENCIES, IF, IN THEIR RESPECTIVE JUDGMENTS, CIRCUMSTANCES WARRANT. IF THE RATING AGENCIES LOWER OR WITHDRAW OUR CREDIT RATINGS, SUCH REVISIONS MAY ADVERSELY AFFECT THE MARKET PRICE OF OUR SECURITIES AND SERVE TO MATERIALLY INCREASE OUR COST OF CAPITAL AND LIMIT ACCESS TO CAPITAL. THE RATINGS SHOULD NOT BE CONSTRUED AS AN INDICATION TO BUY, HOLD OR SELL ANY SECURITY. 66

67 PSEGPublicServiceEnterpriseGroup Additional Financial Information PSEG SHORT-TERM LIQUIDITY AS OF MARCH 31, 2017 COMPANY FACILITY EXPIRATION DATE TOTAL FACILITY USAGE ($MILLIONS) AVAILABLE LIQUIDITY PSEG 5-Year Credit Facilities (A) March 2022 $1,500 $332 $1,168 PSE&G 5-Year Credit Facility (A) March 2022 $600 $14 $586 PSEG Power 3-Year LC Facilities March 2020 $200 $137 $63 5-Year Credit Facilities March 2022 $1,900 $98 $1,802 Total $4,200 $581 $3,619 PSEG Money Pool ST Investment $0 PSE&G ST Investments $125 Total Liquidity Available $3,744 (A) THE PRIMARY USE OF PSEG S AND PSE&G S CREDIT FACILITIES IS TO SUPPORT THEIR RESPECTIVE COMMERCIAL PAPER PROGRAMS, UNDER WHICH AS OF MARCH 31, 2017, PSEG HAD $315 MILLION OUTSTANDING AT A WEIGHTED AVERAGE INTEREST RATE OF 1.25%. AS OF MARCH 31, 2017, PSE&G HAD NO AMOUNTS OUTSTANDING UNDER ITS COMMERCIAL PAPER PROGRAM. PSEG ENERGY HOLDINGS LEVERAGED LEASE PORTFOLIO AS OF MARCH 31,

68 PSEGPublicServiceEnterpriseGroup Additional Financial Information PSEG LONG-TERM DEBT See Notes to Consolidated Financial Statements in PSEG Annual 10-K Report. 68

69 PSEGPublicServiceEnterpriseGroup Additional Financial NYSE: Information PEG PSEG LONG-TERM DEBT -- CONTINUED See Notes to Consolidated Financial Statements in PSEG Annual 10-K Report. 69

70 PSEGPublicServiceEnterpriseGroup Additional Financial NYSE: Information PEG PSEG RECONCILIATION OF NON-GAAP OPERATING EARNINGS 70