Public Service Enterprise Group (PEG) Risk Factor Changes

In addition, PSEG Power retained ownership of certain liabilities excluded from the sale of its fossil generation portfolio.

We are subject to extensive federal, state and local environmental laws and regulations regarding air quality, water quality, site remediation, land use, waste disposal, climate change impact, natural resource damages…

We are subject to numerous federal, state and local environmental laws and regulations that may significantly limit or affect our businesses, result in significant litigation, adversely impact our business plans and/o…

The energy industry continues to be regulated and the rules to which our businesses are subject are always at risk of being changed.

As further described in Item 7.

A significant input into PJM’s transmission planning process is its regional load forecast, which is adjusted on an annual basis.

We are subject to regulation by federal authorities.

The BPU also conducts periodic combined management/competitive service audits of New Jersey utilities related to affiliate standard requirements, competitive services, cross-subsidization, cost allocation and other is…

While we have a 50% ownership interest in the Peach Bottom nuclear generation plants, these plants are operated by a third party and, therefore, we have limited control over the risks associated with these plants.

In addition, changing market design rules, including capacity performance rules and the design and timing of capacity market auctions, and/or failure to follow existing rules by PJM or market participants, as well as…

Advances in distributed generation technologies, such as fuel cells, micro turbines, micro grids, windmills and net-metered solar installations, coupled with subsidies, could (i) affect the price of energy, (ii) reduc…

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Changes in prevailing market prices could have a material adverse effect on our financial condition and results of operations.

PSEG Power sells wholesale natural gas, primarily through a full-requirements BGSS contract with PSE&G to meet the needs of PSE&G’s default gas supply service customers.

The performance of the financial markets will affect the value of the assets that are held in trust to satisfy our future obligations under our defined benefit plan and to decommission our nuclear generating plants.

Certain events such as an aging workforce looking to retire without an opportunity to transfer knowledge to a successor, inadequate workforce plans and replacements, lack of skill set to meet current and evolving busi…

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acts of war or terrorism, or other cybersecurity incidents, we face increased risk of cyberattack.

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The supply chain of goods and services could be impacted by several factors, including sanctions, tariffs, manufacturing labor shortages, domestic and international shipping constraints, increases in demand, physical…

Long-lived assets represent approximately 73% and 80% of the total assets of PSEG and PSE&G, respectively, as of December 31, 2025.

Further, our business is subject to policy, regulatory, technology and economic uncertainties and contingencies, including regulatory approvals required for our various investments, many of which are beyond our contro…

Actions by state and federal government agencies could also result in reduced reliance on natural gas and could potentially result in stranding natural gas assets owned and operated by PSE&G, which could materially ad…

of these cost increases through our existing regulatory rate structures, in the case of PSE&G, or our contracts with our customers, in the case of PSEG Power.

Further, some of the market-based mechanisms in which we participate are at times the subject of review or discussion by some of the participants in the New Jersey and federal arenas.

PSE&G also is pursuing a number of opportunities to expand its products and services to customers.

caused by changes in required or voluntary contributions, an increase in the number of employees becoming eligible to retire and changes in life expectancy assumptions.

energy storage, fuel cells, and DR technologies.

Substantial investments in generation, transmission and distribution will be required to meet current projections of increasing customer demand.

An increasing demand for power and load growth, potentially compounded by a shift away from natural gas toward increased electrification could cause reliability issues and higher costs for customers, which could lead…

Cybersecurity threats to the energy market infrastructure are increasing in sophistication, magnitude and frequency, particularly with the regularity of virtual operations.

specialty components.

We are also exposed to the risk of pandemics, which could result in service disruptions and delays or otherwise impair our ability to timely provide service to our customers, complete our investment projects or obtain…

investments and our ability to meet our targets of net zero GHG emissions by 2030 for Scopes 1 and 2 emissions, or other GHG emissions reduction or climate-related goals that we may set from time to time, in a cost-ef…

Climate change-related political action and state and federal policy goals, including but not limited to those related to energy efficient targets, solar targets, energy storage targets, encouragement of electrificati…

Climate change may increasingly drive change to existing or additional legislation and regulation that may impact our business and shape our customers’ energy preference and sustainability goals.

portfolio, the full remediation costs will likely be material in the aggregate.

Hazardous Substance Liability—PSEG’s operations involve substances and byproducts classified by environmental regulations as hazardous.

non-compliance with these requirements could potentially impact our business, results of operations and cash flows.

Generation activities at, and the operation of, the Peach Bottom plants present risks similar to those described above in GENERAL OPERATIONAL AND FINANCIAL RISKS and RISKS RELATED TO OUR GENERATION BUSINESS and below…

Generation activities at the Peach Bottom plants present risks similar to those to which nuclear generation plants that we operate are subject.

retired or recently retired units being returned to service, the extent to which those generating units are firm or intermittent, or additional transmission capacity;

and NDT Fund could result in the need for us to make significant cash contributions in the future to maintain our funding at sufficient levels, which would negatively impact our results of operations, cash flows and f…

Cybersecurity threats to the energy market infrastructure are increasing in sophistication, magnitude and frequency.

events could result in future asset impairment charges, which could have a material adverse impact on our financial condition and results of operations.

While the CIP protects PSE&G’s margin variances against changes in customer usage of gas and electricity, climate change-related state policy goals, including but not limited to those related to GHG emissions reductio…

Climate change may drive change to existing or additional legislation and regulation that may impact our business and shape our customers’ energy preference and sustainability goals, including impacts of potential cha…

In addition, both lack of supply and increasing demand pose reliability risk for customers.

PJM continues to face significant resource adequacy challenges, driven by a lack of sufficient supply to meet electric demand, which has increased significantly over the past several years and is expected to continue…

Significant resource adequacy challenges present affordability and reliability concerns that could cause policymakers to implement responsive measures that could have a material, adverse impact on our business, strate…