Public Service Enterprise Group Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Public Service Enterprise Group Inc. has filed its 2023 10-K, detailing financial performance and position.</b>

AI Summary

PUBLIC SERVICE ENTERPRISE GROUP INC (PEG) filed a Annual Report (10-K) with the SEC on February 26, 2024. The filing is an annual report on Form 10-K for the fiscal year ended December 31, 2023. The report covers Public Service Enterprise Group Inc. (PSE&G) and its subsidiary, Public Service Electric & Gas Co. The company is incorporated in New Jersey and operates in the Electric & Other Services Combined industry. The filing includes financial data for the fiscal years 2020 through 2023. Key financial statement components like Common Stock, Treasury Stock, Retained Earnings, and Accumulated Other Comprehensive Income are detailed for multiple years.

Why It Matters

For investors and stakeholders tracking PUBLIC SERVICE ENTERPRISE GROUP INC, this filing contains several important signals. This 10-K provides a comprehensive overview of PSE&G's financial health and operational status for the fiscal year 2023, crucial for investors assessing long-term value. The detailed financial data across multiple years allows for trend analysis and comparison, aiding in understanding the company's historical performance and future outlook.

Risk Assessment

Risk Level: medium — PUBLIC SERVICE ENTERPRISE GROUP INC shows moderate risk based on this filing. The company operates in the regulated utility sector, which is subject to significant regulatory oversight and potential changes in policy that could impact financial performance.

Analyst Insight

Investors should review the detailed financial statements and risk factors within the 10-K to understand the company's performance and potential challenges in the upcoming fiscal year.

Key Numbers

• 2023-12-31 — Fiscal Year End (Reporting period)
• 2024-02-26 — Filing Date (Date of submission)
• 0000788784 — Central Index Key (Public Service Enterprise Group Inc. CIk)
• 0000081033 — Central Index Key (Public Service Electric & Gas Co. CIk)

Key Players & Entities

• PUBLIC SERVICE ENTERPRISE GROUP INC (company) — Filer name
• Public Service Electric & Gas Co (company) — Subsidiary filer name
• New Jersey (location) — State of incorporation
• 2023-12-31 (date) — Fiscal year end
• 2024-02-26 (date) — Filing date

FAQ

Risk Factors

• Regulatory Environment [high — regulatory]: The company operates in a heavily regulated industry, subject to changes in laws, regulations, and policies that could impact operations and financial results.
• Financial Performance [medium — financial]: The company's financial results are influenced by various factors including energy prices, economic conditions, and operational efficiency.
• Operational Risks [medium — operational]: Risks related to the operation of utility infrastructure, including potential disruptions from weather events or equipment failures, could affect service reliability and financial performance.

Industry Context

Public Service Enterprise Group Inc. operates within the regulated utility sector, providing essential energy and transportation services.

Regulatory Implications

As a regulated utility, the company is subject to oversight by state and federal regulatory bodies, which approve rates and operational standards.

What Investors Should Do

1. Review the detailed financial statements for fiscal year 2023 to understand revenue, expenses, and profitability.
2. Analyze the risk factors section to identify potential challenges and their impact on the company's future performance.
3. Compare key financial metrics with previous years to assess trends and performance trajectory.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K filing.
• 2024-02-26: Filing Date — Date the 10-K was officially submitted to the SEC.

Year-Over-Year Comparison

This filing is the 2023 annual report, providing updated financial information and disclosures compared to previous filings.

Key Financial Figures

• $902 million — nization Program II (GSMP II) Extension $902 million 2023 2 years (A) 2024 Energy Strong II
• $842 million — ears (A) 2024 Energy Strong II Program $842 million 2019 4 years (B) 2019 CEF-EE $1 billio
• $1 billion — 2 million 2019 4 years (B) 2019 CEF-EE $1 billion 2020 5 years (C) 2020 CEF-EE Extension
• $280 million — 2020 5 years (C) 2020 CEF-EE Extension $280 million 2023 9 months 2023 CEF-Energy Cloud (E
• $707 million — 23 9 months 2023 CEF-Energy Cloud (EC) $707 million 2021 4 years 2021 CEF-EV $166 million
• $166 million — $707 million 2021 4 years 2021 CEF-EV $166 million 2021 ~6 years 2021 Infrastructure Adva
• $511 million — nfrastructure Advancement Program (IAP) $511 million 2022 4 years 2022 (A) The program has
• $109 million — yance. Our proposed ES program is for a $109 million investment that encompasses solar smoot

Filing Documents

• pseg-20231231.htm (10-K) — 5841KB
• ex10a19-deferredcompensati.htm (EX-10.A19) — 87KB
• ex10a20-managementincentiv.htm (EX-10.A20) — 76KB
• ex10a21-equitydeferralplan.htm (EX-10.A21) — 56KB
• ex10a22-2021ltippsuagreeme.htm (EX-10.A22) — 60KB
• ex10a23-2021ltiprsuagreeme.htm (EX-10.A23) — 60KB
• ex10a24-mcfeatersagreement.htm (EX-10.A24) — 19KB
• ex21-12312023.htm (EX-21) — 6KB
• ex23-12312023.htm (EX-23) — 2KB
• ex23a-12312023.htm (EX-23.A) — 2KB
• ex31-12312023.htm (EX-31) — 10KB
• ex31a-12312023.htm (EX-31.A) — 10KB
• ex31b-12312023.htm (EX-31.B) — 11KB
• ex31c-12312023.htm (EX-31.C) — 11KB
• ex32-12312023.htm (EX-32) — 4KB
• ex32a-12312023.htm (EX-32.A) — 4KB
• ex32b-12312023.htm (EX-32.B) — 4KB
• ex32c-12312023.htm (EX-32.C) — 4KB
• ex97-clawbackpractice.htm (EX-97) — 63KB
• pseg-20231231_g1.gif (GRAPHIC) — 30KB
• pseg-20231231_g2.jpg (GRAPHIC) — 67KB
• pseg-20231231_g3.jpg (GRAPHIC) — 101KB
• psegservicecorplogoa.jpg (GRAPHIC) — 162KB
• 0001628280-24-006885.txt (&nbsp;) — 37723KB
• pseg-20231231.xsd (EX-101.SCH) — 172KB
• pseg-20231231_cal.xml (EX-101.CAL) — 178KB
• pseg-20231231_def.xml (EX-101.DEF) — 1323KB
• pseg-20231231_lab.xml (EX-101.LAB) — 1712KB
• pseg-20231231_pre.xml (EX-101.PRE) — 1503KB
• pseg-20231231_htm.xml (XML) — 10152KB

FORWARD-LOOKING STATEMENTS iii

FORWARD-LOOKING STATEMENTS iii FILING FORMAT 1 WHERE TO FIND MORE INFORMATION 1 PART I

Business 1

Item 1. Business 1 Operations and Strategy 2 Competitive Environment 7 Human Capital Management 8 Regulatory Issues 9 Environmental Matters 14 Information About Our Executive Officers (PSEG) 16

Risk Factors 17

Item 1A. Risk Factors 17

Unresolved Staff Comments 30

Item 1B. Unresolved Staff Comments 30

Cybersecurity 30

Item 1C. Cybersecurity 30

Properties 33

Item 2. Properties 33

Legal Proceedings 33

Item 3. Legal Proceedings 33

Mine Safety Disclosures 34

Item 4. Mine Safety Disclosures 34 PART II

Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 34

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 34

[Reserved] 35

Item 6. [Reserved] 35

Management's Discussion and Analysis of Financial Condition and Results of Operations 35

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 35 Executive Overview of 2023 and Future Outlook 36 Results of Operations 41 Liquidity and Capital Resources 45 Capital Requirements 49 Critical Accounting Estimates 50

Quantitative and Qualitative Disclosures About Market Risk 54

Item 7A. Quantitative and Qualitative Disclosures About Market Risk 54

Financial Statements and Supplementary Data 55

Item 8. Financial Statements and Supplementary Data 55 Report of Independent Registered Public Accounting Firm (PCAOB ID No. 34 ) 56 Consolidated Financial Statements 60

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements Note 1. Organization, Basis of Presentation and Summary of Significant Accounting Policies 72 Note 2. Revenues 77 Note 3. Asset Dispositions and Impairments 82 Note 4. Variable Interest Entity (VIE) 82 Note 5. Property, Plant and Equipment and Jointly-Owned Facilities 83 Note 6. Regulatory Assets and Liabilities 84 Note 7. Leases 89 Note 8. Long-Term Investments 93 Note 9. Financing Receivables 93 Note 10. Trust Investments 95 Note 11. Asset Retirement Obligations (AROs) 100 Note 12. Pension, Other Postretirement Benefits (OPEB) and Savings Plans 102 Note 13. Commitments and Contingent Liabilities 111 i Table of Conte n t s TABLE OF CONTENTS ( continued) Note 14. Debt and Credit Facilities 117 Note 15. Schedule of Consolidated Capital Stock 121 Note 16. Financial Risk Management Activities 121 Note 17. Fair Value Measurements 126 Note 18. Stock Based Compensation 129 Note 19. Net Other Income (Deductions) 132 Note 20. Income Taxes 133 Note 21. Accumulated Other Comprehensive Income (Loss), Net of Tax 140 Note 22. Earnings Per Share (EPS) and Dividends 142 Note 23. Financial Information by Business Segment 142 Note 24. Related-Party Transactions 145

Changes In and Disagreements With Accountants on Accounting and Financial Disclosure 146

Item 9. Changes In and Disagreements With Accountants on Accounting and Financial Disclosure 146

Controls and Procedures 146

Item 9A. Controls and Procedures 146

Other Information 146

Item 9B. Other Information 146

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 146

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 146 PART III

Directors, Executive Officers and Corporate Governance 150

Item 10. Directors, Executive Officers and Corporate Governance 150

Executive Compensation 151

Item 11. Executive Compensation 151

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 151

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 151

Certain Relationships and Related Transactions, and Director Independence 151

Item 13. Certain Relationships and Related Transactions, and Director Independence 151

Principal Accountant Fees and Services 151

Item 14. Principal Accountant Fees and Services 151 PART IV

Exhibits, Financial Statement Schedules 152

Item 15. Exhibits, Financial Statement Schedules 152 Schedule II - Valuation and Qualifying Accounts 157 Signatures 158 ii Table of Conte n t s

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS Certain of the matters discussed in this report about our and our subsidiaries' future performance, including, without limitation, future revenues, earnings, strategies, prospects, consequences and all other statements that are not purely historical constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ materially from those anticipated. Such statements are based on management's beliefs as well as assumptions made by and information currently available to management. When used herein, the words "anticipate," "intend," "estimate," "believe," "expect," "plan," "should," "hypothetical," "potential," "forecast," "project," variations of such words and similar expressions are intended to identify forward-looking statements. Factors that may cause actual results to differ are often presented with the forward-looking statements themselves. Other factors that could cause actual results to differ materially from those contemplated in any forward-looking statements made by us herein are discussed in Item 1A. Risk Factors, Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A), Item 8. Financial Statements and Supplementary Data—Note 13. Commitments and Contingent Liabilities, and other filings we make with the United States Securities and Exchange Commission (SEC), including our subsequent reports on Form 10-Q and Form 8-K. These factors include, but are not limited to: any inability to successfully develop, obtain regulatory approval for, or construct transmission and distribution, and our nuclear generation projects; the physical, financial and transition risks related to climate change, including risks relating to potentially increased legislative and regulatory burdens, changing customer preferences and lawsuits; any equipm

BUSINESS

ITEM 1. BUSINESS We were incorporated under the laws of the State of New Jersey in 1985 and our principal executive offices are located at 80 Park Plaza, Newark, New Jersey 07102. We principally conduct our business through two direct wholly owned subsidiaries, PSE&G and PSEG Power LLC (PSEG Power), each of which also has its principal executive offices at 80 Park Plaza, Newark, New Jersey 07102. We are a public utility holding company consisting primarily of a regulated electric and gas utility and a nuclear generation business. Over the past several years, our investments resulted in a higher percentage of earnings contribution by PSE&G. The sale of the fossil generating portfolio in 2022 further simplified our business mix, resulting in an even higher percentage of earnings contribution by PSE&G going forward and provides more financial flexibility. Our business approach focuses on operational excellence, financial strength and disciplined investment. As a holding company, our profitability depends on our subsidiaries' operating results. Below are descriptions of our two principal direct operating subsidiaries. PSE&G —A New Jersey corporation, incorporated in 1924, which is a franchised public utility in New Jersey. It is also the provider of last resort for gas and electric commodity service for end users in its service territory. PSE&G earns revenues from its regulated rate tariffs under which it provides electric transmission and electric and natural gas distribution to residential, commercial and industrial (C&I) customers in its service territory. It also offers appliance services and repairs to customers throughout its service territory and invests in regulated solar generation projects and regulated energy efficiency (EE) and related programs in New Jersey. PSEG Power —A Delaware limited liability company formed in 1999 as a result of the deregulation and restructuring of the electric power industry in New Jersey. PSEG Power earns revenues from its nu

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