Public Service Enterprise Group (PEG) risk factors, 2026 10-K

GENERAL OPERATIONAL AND FINANCIAL RISKS

1. 01Inability to successfully develop, obtain regulatory approval for, or construct T&D, and our nuclear generation projects could adversely impact our businesses
2. 02Failure to obtain regulatory or other approvals, delays, cost escalations or otherwise unsuccessful construction and development could materially affect our financial position, results of operations and cash flows35% rewritten
3. 03Any of these risks could cause the amounts of our investments and/or our return on these investments to be lower than expected, which could adversely impact our financial condition and results of operations through lower investment opportunities and/or lower returnsnew
4. 04We are subject to physical, financial and transition risks related to climate change, including potentially increased legislative and regulatory burdens and changing customer preferences, and we may be subject to lawsuits, all of which could impact our businesses and results of operations47% rewritten
5. 05To the extent financial markets view climate change and greenhouse gas (GHG) emissions as a financial risk, our ability to access capital markets could be negatively affected or cause us to receive less than favorable terms and conditions84% rewritten
6. 06Any inability to recover the carrying amount of our long-lived assets could result in future impairment charges which could have a material adverse impact on our financial condition and results of operations
7. 07Disruptions or cost increases in our supply chain, including labor shortages, could materially impact our business24% rewritten
8. 08Inability to maintain sufficient liquidity in the amounts and at the times needed or access sufficient capital at reasonable rates or on commercially reasonable terms could adversely impact our business
9. 09maintenance of our investment grade credit ratings
10. 10Cybersecurity attacks, data breaches, or intrusions or other disruptions to our IT, operational or other systems could adversely impact our businesses
11. 11breaches of vendors’ infrastructures where our confidential information is stored
12. 12Failure to attract and retain a qualified workforce could have an adverse effect on our business
13. 13Inflation, including increases in the costs of equipment and materials, fuel, services and labor could adversely affect our operating results
14. 14Covenants in our debt instruments and credit agreements may adversely affect our business
15. 15Financial market performance directly affects the asset values of our defined benefit plan trust funds and Nuclear Decommissioning Trust (NDT) Fund. Market performance and other factors could decrease the value of trust assets and could result in the need for significant additional funding
16. 16We are party to, and are also exploring opportunities to enter into, several contracts from which we currently or may in the future derive significant revenues27% rewritten
17. 17Artificial Intelligence is an emerging area of technology that has the potential to impact various aspects of our business operations and customer interactions

RISKS RELATED TO OUR GENERATION BUSINESS

1. 18Fluctuations in the wholesale power and natural gas markets could negatively affect our financial condition, results of operations and cash flows
2. 19federal and state power, market and environmental regulation and legislation, including financial incentives for new renewable energy generation capacity that could lead to oversupply and price suppression
3. 20We may be unable to obtain an adequate nuclear fuel supply in the future
4. 21the loss of critical infrastructure, acts of war or terrorist attacks (including cybersecurity breaches) or catastrophic events such as fires, earthquakes, explosions, floods, severe storms or other similar occurrences could impede the delivery of such fuels
5. 22The introduction or expansion of technologies related to energy generation, distribution and consumption and changes in customer usage patterns could adversely impact us28% rewritten
6. 23We are subject to third-party credit risk relating to our sale of nuclear generation output
7. 24There may be periods when PSEG Power generation may not operate and/or may not be able to meet its commitments under forward sale obligations and PJM rules at a reasonable cost or at all
8. 25Identifying and correcting any of these issues may require significant time and expense. Depending on the materiality of the issue, we may choose to close a plant rather than incur the expense of restarting it or returning it to full capacity24% rewritten
9. 26Generation 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 in REGULATORY, LEGISLATIVE AND LEGAL RISKSnew

REGULATORY, LEGISLATIVE AND LEGAL RISKS

1. 27PSE&G’s revenues, earnings and results of operations are dependent upon state laws and regulations that affect distribution and related activities
2. 28PSE&G’s proposed investment projects or programs may not be fully approved by regulators and actual capital investment by PSE&G may be lower than planned, which would cause lower than anticipated rate base
3. 29We are subject to comprehensive federal regulation that affects, or may affect, our businesses37% rewritten
4. 30point adder for RTO membership in 2008. Elimination of the adder for RTO membership would reduce PSE&G’s annual Net Income and annual cash inflows by approximately $40 million
5. 31As further described in Item 7. MD&A—Executive Overview of 2025 and Future Outlook, PSEG Power’s Salem 1, Salem 2 and Hope Creek nuclear plants were awarded ZECs by the BPU through May 2025
6. 32We may be adversely affected by changes in energy regulatory policies, including energy and capacity market design rules and developments affecting transmission67% rewritten
7. 33Our ownership and operation of nuclear power plants involve regulatory risks as well as financial, environmental and health and safety risks
8. 34In addition, if a unit cannot be operated through the end of its current estimated useful life, our results of operations could be adversely affected by increased depreciation rates, impairment charges and accelerated future decommissioning costs
9. 35We 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/or expose us to significant environmental fines, costs and other liabilities41% rewritten
10. 36portfolio, the full remediation costs will likely be material in the aggregate. The costs could potentially include costs for, among other things, excavating soil, implementation of institutional controls, and the construction, operation and maintenance of engineering controlsnew
11. 37We may not receive necessary licenses, permits and siting approvals in a timely manner or at all, which could adversely impact our business and results of operations
12. 38Changes in tax laws and regulations may adversely affect our financial condition, results of operations and cash flows