Public Service Enterprise Group Incorporated

Ladies and gentlemen, thank you for standing by. My name is Shamali, and I am your event operator today. I would like to welcome everyone to today's conference, Public Service Enterprise Group's first quarter 2026 earnings conference call and webcast. At this time, all participants are in a listen-only mode. Later, we will conduct a question and answer session for the members of the financial community. At that time, if you have a question, you will need to press the star and the number one on your telephone keypad. To withdraw your question, please press star and the number two. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded today, May 5th, 2026, and will be available for replay as an audio webcast on PSEG's Investor Relations website at httpsinvestor.pseg.com. I would now like to turn the conference over to Carlotta Chan. Please go ahead.

Good morning and welcome to PSEG's first quarter 2026 earnings presentation. On today's call are Ralph LaRosa, Chair, President and CEO, and Dan Craig, Executive Vice President and CFO. The press release attachments and slides for today's discussion are posted on our IR website at investor.pseg.com and our 10Q will be filed later today. PSEG's earnings release and other matters discussed during today's call contain forward-looking statements and estimates that are subject to various risks and uncertainties. We will also discuss non-GAAP operating earnings, which differs from net income, as reported in accordance with generally accepted accounting principles, or GAAP, in the United States. We include reconciliations of our non-GAAP financial measures and a disclaimer regarding forward-looking statements on our IR website and in today's materials. Following our prepared remarks, we will conduct a 30-minute question and answer session. I will now turn the call over to Ralph La Rosa.

Thank you, Carlotta, and thank you for joining us to review PSEG's first quarter 2026 results. Starting with our financial results, PSEG reported net income of $1.48 per share and non-GAAP operating earnings of $1.55 per share. Our first quarter results reflect continued investment in utility infrastructure focused on reliability and cost savings energy efficiency programs at PSEG. and that PSEG power, higher gas volume, and capacity revenues have more than offset the absence of the zero emission certificate program that concluded last May. With this solid start to 2026, we are maintaining our full year non-GAAP operating earnings guidance in the range of $4.28 to $4.40 per share. On the operations front, I'm very pleased to report that our utility and nuclear operations delivered excellent reliability during one of the harshest winters in decades. In preparation for these extreme weather events that included high snow accumulation, ice, and Arctic air temperatures, PSE&G initiated its winter weather readiness procedures and ensured adequate staffing for timely storm response. Starting in January with Winter Storm Fern through Winter Storm Hernando in late February that dropped 30 inches of snow on parts of northern New Jersey, PSE&G's systems held up well during intense conditions. For the relatively small group of customers that were affected by the weather, PSE&G was able to restore service to virtually all customers within 24 hours. I can't say enough about our employees who carry out PSE&G's storm response work and who braved the elements to keep the lights on and homes warm for our customers. The utility experienced peak winter gas send-out on February 7th, following over a week of sub-freezing temperatures. These conditions underscore the need for continued investment in gas infrastructure modernization to address the impact that extreme temperatures have on our aging cast iron gas system. Despite the year's winter weather, PSE&G is on track with its 2026 capital spending plan of approximately $4.2 billion, investing in critical energy infrastructure, cost-saving energy efficiency, and system modernization for reliability and to meet new demands. During the same time, we have worked with the Governor's Office and the New Jersey Board of Public Utilities to keep electric rates flat in 2026. in keeping with the Executive Orders 1 and 2 that are addressing utility costs and generation supply. PSE&G's electric customers will also benefit from the update reflecting the latest basic generation service auction results, which will go into effect on June 1. On February 1, we also kept residential natural gas rates flat for the remainder of the 2025-2026 winter heating season, delivering to our customers the lowest gas bills in New Jersey and in the region. And there is more good news for PSE&G electric customers. In early March, FERC issued an order supporting PSE&G and the State of New Jersey's objection to its PJM transmission cost allocations. FERC's ruling reallocating these costs is expected to result in significant refunds of over $100 million, based on our estimates, to PSE&G customers after PJM's implementation. While this matter is still being litigated at FERC, it's another example of how PSE&G works in partnership with the state at the regional and federal levels to keep our customer bills as low as possible. I'd also like to mention that we're wrapping up PSE&G's technology-driven conservation efforts. PSE&G recently launched two new ways to reduce energy use during peak times to save customers money and help reduce strain on the grid. The first is our demand response program with over 32,000 residential and small business customers already enrolled to receive an upfront payment for reducing air conditioned use and other activities like EV charging during selected peak hours throughout the year. The second program, our new residential time of use rate that can save customers money by shifting some of their usage to off peak time. This new rate option leverages the more detailed electric usage made available by our AMI investment in Smarter Meters. Combined with our energy efficiency programs, PSE&G offers customers a variety of ways to reduce energy usage, manage their bills, and starting this summer, participate in creating a more flexible energy grid through our virtual power plant pilot. The BPU has started the process of implementing the directive in the first executive order to examine the regulation of the electric distribution utility business model. We expect that the VPU consultant will release a study this summer and that a stakeholder process on the topic will continue throughout the remainder of the year. We intend to fully engage with the VPU throughout this process. Now turning to PSEG power. First, I'd like to congratulate the PSCG nuclear team for completing a second consecutive breaker-to-breaker operating run at Salem Unit 2 to begin their refueling outage this April. That notable accomplishment contributed to a 95.5% capacity factor and supplied 8 terawatt hours of reliable, carbon-free baseload energy to New Jersey and the grid during the first quarter. Last week, FERC approved the extension of the PGM capacity price collar through the 2029-2030 base residual auction. This extension is expected to stabilize the effect of upcoming auctions on New Jersey's BGS default prices, even as regional demand growth advances with a limited supply response. As part of an all-of-the-above long-term approach to increasing New Jersey base generation supply, Governor Sherrill recently signed legislation lifting a decades-long moratorium on new nuclear construction. The announcement made at our three-unit site in Salem County highlighted broad support from policymakers, legislators, and labor leaders. PSEG is engaging in efforts to advance new nuclear development at PSEG's site, and we believe the site's unique strengths, including an early site permit, prime logistics, access to a skilled workforce, and opportunities to leverage our operating expertise through contractual arrangements, make it a leading candidate for new nuclear deployment. We have also been watching developments related to PGM's proposed reliability backstop procurement auction. This is intended to be a one-time procurement or emergency auction to accelerate new dispatchable generation that can be brought online by 2031 to serve data center-driven load growth. More details from PGM are expected over the next month and we will continue our vigilance during the stakeholder process to advocate on behalf of PSEG's customers. Wrapping up, PSEG had a strong operating and financial quarter to start the year by doing the right thing for our customers, our communities, and our shareholders with an eye towards a sustainable future. Our corporate reputation for excellence beyond our well-known reliability and customer satisfaction awards was recognized again last week when PSEG was named to the Dow Jones Best in Class North America Index for the 18th year in a row. We are maintaining a broad set of financial projections that we share with you late in February, starting with our five-year regulated capital investment plan of $22.5 to $25.5 billion at PSEG and $24 to $28 billion for PSEG, both through 2030. This investment program supports the utility's six to seven and a half percent compound annual growth in rate base, also through 2030, and helps drive a six to eight percent non-GAAP operating earnings CAGR at PSEG over that same period. And I would highlight again that items including nuclear revenue opportunities above current market prices, winning additional competitive transmission solicitations, or making incremental system investments to connect several thousand megawatts of solar and battery storage resources to the grid to meet new demand would be incremental to our six to eight percent non-GAAP operating earnings CAGR. I will now turn the call over to Dan, who will review this quarter's results, and then rejoin the call for our Q&A session.