PUBLIC SERVICE ENTERPRISE GROUP INC [PEG] Filings

10-Q 1 pseg-20230930.htm 10-Q pseg-20230930

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

FOR THE QUARTERLY PERIOD ENDED September 30, 2023

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

FOR THE TRANSITION PERIOD FROM TO


Commission File Number	Name of Registrant, Address, and Telephone Number			State or other jurisdiction of Incorporation or Organization	I.R.S. Employer Identification Number
001-09120	Public Service Enterprise Group Incorporated			New Jersey	22-2625848
	80 Park Plaza
	Newark,	New Jersey	07102
	973	430-7000

001-00973	Public Service Electric and Gas Company			New Jersey	22-1212800
	80 Park Plaza
	Newark,	New Jersey	07102
	973	430-7000

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class

Trading Symbol(s)

Name of Each Exchange
On Which Registered

Public Service Enterprise Group Incorporated

Common Stock without par value

PEG

New York Stock Exchange

Public Service Electric and Gas Company

8.00% First and Refunding Mortgage Bonds, due 2037

PEG37D

New York Stock Exchange

5.00% First and Refunding Mortgage Bonds, due 2037

PEG37J

New York Stock Exchange

Indicate by check mark whether the registrants (1) have filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrants were required to file such reports), and (2) have been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrants have submitted electronically every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrants were required to submit such files). Yes ☒ No ☐

Indicate by check mark whether each registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Public Service Enterprise Group Incorporated

Large accelerated filer

☒

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

Public Service Electric and Gas Company

Large accelerated filer

☐

Accelerated filer

☐

Non-accelerated filer

☒

Smaller reporting company

☐

Emerging growth company

☐

(Cover continued on next page)

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(Cover continued from previous page)

If any of the registrants is an emerging growth company, indicate by check mark if such registrant has elected not to use

the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether any of the registrants is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of October 17, 2023, Public Service Enterprise Group Incorporated had outstanding 498,314,302 shares of its sole class of Common Stock, without par value.

As of October 17, 2023, Public Service Electric and Gas Company had issued and outstanding 132,450,344 shares of Common Stock, without nominal or par value, all of which were privately held, beneficially and of record, by Public Service Enterprise Group Incorporated.

Public Service Electric and Gas Company is a wholly owned subsidiary of Public Service Enterprise Group Incorporated and meets the conditions set forth in General Instruction H(1) of Form 10-Q. Public Service Electric and Gas Company is filing its Quarterly Report on Form 10-Q with the reduced disclosure format authorized by General Instruction H.

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		Page
FORWARD-LOOKING STATEMENTS		ii
FILING FORMAT		iii
PART I. FINANCIAL INFORMATION

Item 1.	Financial Statements
	Public Service Enterprise Group Incorporated	1
	Public Service Electric and Gas Company	7
	Notes to Condensed Consolidated Financial Statements
	Note 1. Organization, Basis of Presentation and Significant Accounting Policies	13
	Note 2. Revenues	14
	Note 3. Early Plant Retirements/Asset Dispositions and Impairments	20
	Note 4. Variable Interest Entity (VIE)	21

	Note 5. Rate Filings	21
	Note 6. Leases	23
	Note 7. Financing Receivables	23
	Note 8. Trust Investments	25
	Note 9. Pension and Other Postretirement Benefits (OPEB)	31
	Note 10. Commitments and Contingent Liabilities	33
	Note 11. Debt and Credit Facilities	38
	Note 12. Financial Risk Management Activities	40
	Note 13. Fair Value Measurements	44
	Note 14. Other Income (Deductions)	49
	Note 15. Income Taxes	50
	Note 16. Accumulated Other Comprehensive Income (Loss), Net of Tax	52
	Note 17. Earnings Per Share (EPS) and Dividends	54
	Note 18. Financial Information by Business Segment	55
	Note 19. Related-Party Transactions	57
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	58
	Executive Overview of 2023 and Future Outlook	58
	Results of Operations	64
	Liquidity and Capital Resources	69
	Capital Requirements	71
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	71
Item 4.	Controls and Procedures	72
PART II. OTHER INFORMATION
Item 1.	Legal Proceedings	73
Item 1A.	Risk Factors	73
Item 5.	Other Information	73
Item 6.	Exhibits	75
	Signatures	76

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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 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:

•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 equipment failures, accidents, critical operating technology or business system failures, severe weather events, acts of war, terrorism or other acts of violence, sabotage, physical attacks or security breaches, cyberattacks or other incidents that may impact our ability to provide safe and reliable service to our customers;

•any inability to recover the carrying amount of our long-lived assets;

•disruptions or cost increases in our supply chain, including labor shortages;

•any inability to maintain sufficient liquidity or access sufficient capital on commercially reasonable terms;

•the impact of cybersecurity attacks or intrusions or other disruptions to our information technology, operational or other systems;

•a material shift away from natural gas toward increased electrification and a reduction in the use of natural gas;

•failure to attract and retain a qualified workforce;

•inflation, including increases in the costs of equipment, materials, fuel and labor;

•the impact of our covenants in our debt instruments and credit agreements on our business;

•adverse performance of our defined benefit plan trust funds and Nuclear Decommissioning Trust Fund and increases in funding requirements and pension costs;

•fluctuations in, or third party default risk in wholesale power and natural gas markets, including the potential impacts on the economic viability of our generation units;

•our ability to obtain adequate nuclear fuel supply;

•changes in technology related to energy generation, distribution and consumption and changes in customer usage patterns;

•third-party credit risk relating to and purchase of nuclear fuel;

•any inability to meet our commitments under forward sale obligations and Regional Transmission Organization rules;

•reliance on transmission facilities to maintain adequate transmission capacity for our nuclear generation fleet;

•the impact of changes in state and federal legislation and regulations on our business, including PSE&G’s ability to recover costs and earn returns on authorized investments;

•PSE&G’s proposed investment programs may not be fully approved by regulators and its capital investment may be lower than planned;

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•our ability to advocate for and our receipt of appropriate regulatory guidance to ensure long-term support for our nuclear fleet;

•adverse changes in and non-compliance with energy industry laws, policies, regulations and standards, including market structures and transmission planning and transmission returns;

•risks associated with our ownership and operation of nuclear facilities, including increased nuclear fuel storage costs, regulatory risks, such as compliance with the Atomic Energy Act and trade control, environmental and other regulations, as well as financial, environmental and health and safety risks;

•changes in federal and state environmental laws and regulations and enforcement;

•delays in receipt of, or an inability to receive, necessary licenses and permits and siting approvals; and

•changes in tax laws and regulations.

All of the forward-looking statements made in this report 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 report apply only as of the date of this report. 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 report 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.

From time to time, PSEG and PSE&G release important information via postings on their corporate Investor Relations website at https://investor.pseg.com. Investors and other interested parties are encouraged to visit the Investor Relations website to review new postings. You can sign up for automatic email alerts regarding new postings at the bottom of the webpage at https://investor.pseg.com or by navigating to the Email Alerts webpage at https://investor.pseg.com/resources/email-alerts/default.aspx. The information on https://investor.pseg.com and https://investor.pseg.com/resources/email-alerts/default.aspx is not incorporated herein and is not part of this Form 10-Q.

FILING FORMAT

This combined Quarterly Report on Form 10-Q is separately filed by Public Service Enterprise Group Incorporated (PSEG) and Public Service Electric and Gas Company (PSE&G). Information relating to any individual company is filed by such company on its own behalf. PSE&G is only responsible for information about itself and its subsidiaries.

Discussions throughout the document refer to PSEG and its direct operating subsidiaries. Depending on the context of each section, references to “we,” “us,” and “our” relate to PSEG or to the specific company or companies being discussed.

iii

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PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Millions, except per share data

(Unaudited)



	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2023		2022		2023		2022
OPERATING REVENUES	$	2,456	$	2,272	$	8,632	$	6,661
OPERATING EXPENSES
Energy Costs	831		1,012		2,517		3,022
Operation and Maintenance	792		765		2,279		2,310
Depreciation and Amortization	282		270		843		822
Losses on Asset Dispositions and Impairments	—		52		—		90
Total Operating Expenses	1,905		2,099		5,639		6,244
OPERATING INCOME	551		173		2,993		417
Income from Equity Method Investments	—		5		1		16
Net Gains (Losses) on Trust Investments	(40)		(97)		63		(352)
Other Income (Deductions)	41		43		132		86
Net Non-Operating Pension and Other Postretirement Benefit (OPEB) Credits (Costs)	(302)		94		(245)		282
Interest Expense	(185)		(163)		(550)		(450)
INCOME (LOSS) BEFORE INCOME TAXES	65		55		2,394		(1)
Income Tax Benefit (Expense)	74		59		(377)		244
NET INCOME	$	139	$	114	$	2,017	$	243
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
BASIC	498		497		497		498
DILUTED	500		500		500		501
NET INCOME PER SHARE:
BASIC	$	0.28	$	0.23	$	4.06	$	0.49
DILUTED	$	0.27	$	0.22	$	4.03	$	0.48

See Notes to Condensed Consolidated Financial Statements.

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PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

Millions

(Unaudited)



	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2023		2022		2023		2022
NET INCOME	$	139	$	114	$	2,017	$	243
Other Comprehensive Income (Loss), net of tax
Unrealized Gains (Losses) on Available-for-Sale Securities, net of tax (expense) benefit of $19, $24, $8 and $93 for the three and nine months ended 2023 and 2022, respectively	(31)		(39)		(13)		(146)
Unrealized Gains (Losses) on Cash Flow Hedges, net of tax (expense) benefit of $(4), $0, $(8) and $(1) for the three and nine months ended 2023 and 2022, respectively	11		1		21		2
Pension/OPEB adjustment, net of tax (expense) benefit of $(126), $0, $(129) and $0 for the three and nine months ended 2023 and 2022, respectively	322		—		329		1
Other Comprehensive Income (Loss), net of tax	302		(38)		337		(143)
COMPREHENSIVE INCOME	$	441	$	76	$	2,354	$	100

See Notes to Condensed Consolidated Financial Statements.

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PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED

CONDENSED CONSOLIDATED BALANCE SHEETS

Millions

(Unaudited)



	September 30, 2023		December 31, 2022
ASSETS
CURRENT ASSETS
Cash and Cash Equivalents	$	57	$	465
Accounts Receivable, net of allowance of $279 in 2023 and $323 in 2022	1,417		1,944
Tax Receivable	8		79
Unbilled Revenues, net of allowance of $4 in 2023 and $16 in 2022	165		322
Fuel	284		420
Materials and Supplies, net	686		540
Prepayments	297		93
Derivative Contracts	70		18
Regulatory Assets	257		369
Assets Held for Sale	—		20
Other	42		33
Total Current Assets	3,283		4,303
PROPERTY, PLANT AND EQUIPMENT	47,990		45,924
Less: Accumulated Depreciation and Amortization	(10,536)		(9,982)
Net Property, Plant and Equipment	37,454		35,942
NONCURRENT ASSETS
Regulatory Assets	4,911		4,404
Operating Lease Right-of-Use Assets	178		176
Long-Term Investments	298		624
Nuclear Decommissioning Trust (NDT) Fund	2,316		2,230
Long-Term Tax Receivable	—		5
Long-Term Receivable of Variable Interest Entity (VIE)	563		551
Rabbi Trust Fund	167		183
Intangibles	23		14
Derivative Contracts	36		15
Other	323		271
Total Noncurrent Assets	8,815		8,473
TOTAL ASSETS	$	49,552	$	48,718

See Notes to Condensed Consolidated Financial Statements.

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PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED

CONDENSED CONSOLIDATED BALANCE SHEETS

Millions

(Unaudited)



	September 30, 2023		December 31, 2022
LIABILITIES AND CAPITALIZATION
CURRENT LIABILITIES
Long-Term Debt Due Within One Year	$	2,000	$	1,575
Commercial Paper and Loans	695		2,200
Accounts Payable	1,120		1,271
Derivative Contracts	60		124
Accrued Interest	162		134
Accrued Taxes	12		12
Clean Energy Program	186		145
Obligation to Return Cash Collateral	93		290
Regulatory Liabilities	385		384
Other	477		545
Total Current Liabilities	5,190		6,680
NONCURRENT LIABILITIES
Deferred Income Taxes and Investment Tax Credits (ITC)	6,478		5,725
Regulatory Liabilities	2,124		2,240
Operating Leases	173		169
Asset Retirement Obligations	1,531		1,499
OPEB Costs	395		410
OPEB Costs of Servco	472		455
Accrued Pension Costs	428		705
Accrued Pension Costs of Servco	76		82
Environmental Costs	220		231
Derivative Contracts	5		33
Long-Term Accrued Taxes	55		66
Other	200		199
Total Noncurrent Liabilities	12,157		11,814
COMMITMENTS AND CONTINGENT LIABILITIES (See Note 10)
CAPITALIZATION
LONG-TERM DEBT	17,039		16,495
STOCKHOLDERS’ EQUITY
Common Stock, no par, authorized 1,000 shares; issued, 2023 and 2022—534 shares	5,008		5,065
Treasury Stock, at cost, 2023 and 2022—36 and 37 shares, respectively	(1,384)		(1,377)
Retained Earnings	11,755		10,591
Accumulated Other Comprehensive Loss	(213)		(550)
Total Stockholders’ Equity	15,166		13,729
Total Capitalization	32,205		30,224
TOTAL LIABILITIES AND CAPITALIZATION	$	49,552	$	48,718

See Notes to Condensed Consolidated Financial Statements.

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PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Millions (Unaudited)



	Nine Months Ended
	September 30,
	2023		2022
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income	$	2,017	$	243
Adjustments to Reconcile Net Income to Net Cash Flows from Operating Activities:
Depreciation and Amortization	843		822
Amortization of Nuclear Fuel	144		141
Losses on Asset Dispositions and Impairments	—		90
Emission Allowances and Renewable Energy Credit (REC) Compliance Accrual	4		50
Provision for Deferred Income Taxes and ITC	293		(460)
Non-Cash Employee Benefit Plan (Credits) Costs	357		(179)

Net Realized and Unrealized (Gains) Losses on Energy Contracts and Other Derivatives	(1,041)		1,249
Cost of Removal	(121)		(94)
Net Change in Regulatory Assets and Liabilities	(245)		(199)
Net (Gains) Losses and (Income) Expense from NDT Fund	(107)		303
Net Change in Certain Current Assets and Liabilities:
Tax Receivable	71		1
Accrued Taxes	—		(98)
Prepayments	(204)		(90)
Cash Collateral	1,175		(1,317)
Obligation to Return Cash Collateral	(197)		253
Other Current Assets and Liabilities	137		25
Employee Benefit Plan Funding and Related Payments	(31)		(25)
Other	1		(14)
Net Cash Provided By (Used In) Operating Activities	3,096		701
CASH FLOWS FROM INVESTING ACTIVITIES
Additions to Property, Plant and Equipment	(2,360)		(2,088)
Proceeds from Sales of Trust Investments	998		1,281
Purchases of Trust Investments	(1,025)		(1,309)
Proceeds from Sales of Equity Method Investments	291		—
Proceeds from Sales of Long-Lived Assets	20		1,914
Other	46		(97)
Net Cash Provided By (Used In) Investing Activities	(2,030)		(299)
CASH FLOWS FROM FINANCING ACTIVITIES
Net Change in Commercial Paper and Loans	(5)		(784)
Proceeds from Short-Term Loans	750		2,000
Payment of Short-Term Loans	(2,250)		(2,500)
Issuance of Long-Term Debt	1,800		1,750
Payment of Long-Term Debt	(825)		—
Payments for Share Repurchase Program	—		(500)
Cash Dividends Paid on Common Stock	(853)		(810)
Other	(94)		(3)
Net Cash Provided By (Used In) Financing Activities	(1,477)		(847)
Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash	(411)		(445)
Cash, Cash Equivalents and Restricted Cash at Beginning of Period	511		863
Cash, Cash Equivalents and Restricted Cash at End of Period	$	100	$	418
Supplemental Disclosure of Cash Flow Information:
Income Taxes Paid (Received)	$	97	$	352
Interest Paid, Net of Amounts Capitalized	$	501	$	416
Accrued Property, Plant and Equipment Expenditures	$	425	$	367

See Notes to Condensed Consolidated Financial Statements.

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PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

Millions

(Unaudited)



	Common Stock			Treasury Stock			Retained Earnings		Accumulated Other Comprehensive Income (Loss)
	Shs.	Amount		Shs.	Amount						Total
Balance as of June 30, 2023	534	$	5,054	(37)	$	(1,386)	$	11,900	$	(515)	$	15,053
Net Income	—	—		—	—		139		—		139
Other Comprehensive Income (Loss), net of tax (expense) benefit of $(111)	—	—		—	—		—		302		302
Comprehensive Income											441
Cash Dividends at $0.57 per share on Common Stock	—	—		—	—		(284)		—		(284)
Other	—	(46)		1	2		—		—		(44)
Balance as of September 30, 2023	534	$	5,008	(36)	$	(1,384)	$	11,755	$	(213)	$	15,166

Balance as of June 30, 2022	534	$	5,038	(37)	$	(1,382)	$	10,227	$	(455)	$	13,428
Net Income	—	—		—	—		114		—		114
Other Comprehensive Income (Loss), net of tax (expense) benefit of $24	—	—		—	—		—		(38)		(38)
Comprehensive Income											76
Cash Dividends at $0.54 per share on Common Stock	—	—		—	—		(269)		—		(269)
Other	—	14		—	2		—		—		16
Balance as of September 30, 2022	534	$	5,052	(37)	$	(1,380)	$	10,072	$	(493)	$	13,251



	Common Stock			Treasury Stock			Retained Earnings		Accumulated Other Comprehensive Income (Loss)
	Shs.	Amount		Shs.	Amount						Total
Balance as of December 31, 2022	534	$	5,065	(37)	$	(1,377)	$	10,591	$	(550)	$	13,729
Net Income	—	—		—	—		2,017		—		2,017
Other Comprehensive Income (Loss), net of tax (expense) benefit of $(129)	—	—		—	—		—		337		337
Comprehensive Income											2,354
Cash Dividends at $1.71 per share on Common Stock	—	—		—	—		(853)		—		(853)
Other	—	(57)		1	(7)		—		—		(64)
Balance as of September 30, 2023	534	$	5,008	(36)	$	(1,384)	$	11,755	$	(213)	$	15,166

Balance as of December 31, 2021	534	$	5,045	(30)	$	(896)	$	10,639	$	(350)	$	14,438
Net Income	—	—		—	—		243		—		243
Other Comprehensive Income (Loss), net of tax (expense) benefit of $92	—	—		—	—		—		(143)		(143)
Comprehensive Income											100
Cash Dividends at $1.62 per share on Common Stock	—	—		—	—		(810)		—		(810)
Payments for Share Repurchase Program	—	—		(7)	(500)		—		—		(500)
Other	—	7		—	16		—		—		23
Balance as of September 30, 2022	534	$	5,052	(37)	$	(1,380)	$	10,072	$	(493)	$	13,251

See Notes to Condensed Consolidated Financial Statements.

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PUBLIC SERVICE ELECTRIC AND GAS COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Millions

(Unaudited)



	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2023		2022		2023		2022
OPERATING REVENUES	$	1,999	$	1,953	$	5,954	$	5,905
OPERATING EXPENSES
Energy Costs	765		791		2,300		2,389
Operation and Maintenance	459		452		1,348		1,349
Depreciation and Amortization	244		229		728		697
Gain on Asset Dispositions	—		(1)		—		(1)
Total Operating Expenses	1,468		1,471		4,376		4,434
OPERATING INCOME	531		482		1,578		1,471
Net Gains (Losses) on Trust Investments	—		—		—		(2)
Other Income (Deductions)	21		25		65		66
Net Non-Operating Pension and OPEB Credits (Costs)	30		70		86		211
Interest Expense	(128)		(109)		(364)		(319)
INCOME BEFORE INCOME TAXES	454		468		1,365		1,427
Income Tax Expense	(53)		(69)		(141)		(214)
NET INCOME	$	401	$	399	$	1,224	$	1,213

See disclosures regarding Public Service Electric and Gas Company included in the Notes to Condensed Consolidated Financial Statements.

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PUBLIC SERVICE ELECTRIC AND GAS COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

Millions

(Unaudited)



	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2023		2022		2023		2022
NET INCOME	$	401	$	399	$	1,224	$	1,213
Unrealized Gains (Losses) on Available-for-Sale Securities, net of tax (expense) benefit of $0, $0, $0 and $2 for the three and nine months ended 2023 and 2022, respectively	(1)		(2)		—		(6)
COMPREHENSIVE INCOME	$	400	$	397	$	1,224	$	1,207

See disclosures regarding Public Service Electric and Gas Company included in the Notes to Condensed Consolidated Financial Statements.

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PUBLIC SERVICE ELECTRIC AND GAS COMPANY

CONDENSED CONSOLIDATED BALANCE SHEETS

Millions

(Unaudited)



	September 30, 2023		December 31, 2022
ASSETS
CURRENT ASSETS
Cash and Cash Equivalents	$	26	$	220
Accounts Receivable, net of allowance of $279 in 2023 and $323 in 2022	1,052		1,075

Accounts Receivable—Affiliated Companies	20		—
Unbilled Revenues, net of allowance of $4 in 2023 and $16 in 2022	165		322
Materials and Supplies, net	438		307
Prepayments	161		7
Regulatory Assets	257		369

Other