Item 5. OTHER INFORMATION

Certain information is provided below for new matters that have arisen subsequent to the filing of the Form 10-K.

Human Capital Management

Labor Relations

December 31, 2022 Form 10-K page 9. In March 2023, in advance of 2023 contract expirations, negotiations with all five unions representing New Jersey workers resulted in ratification of new four-year collective bargaining agreements effective in the second quarter 2023.

Federal Regulation

Capacity Market Issues

December 31, 2022 Form 10-K page 11. PJM’s most recent base residual auction was held in December 2022. In an order issued in February 2023, FERC allowed PJM to recalculate the clearing price in one particular capacity zone for that auction and also accepted tariff changes that will permit PJM to implement similar changes in future auctions. PJM has recently filed at FERC seeking approval to delay the upcoming June 2023 base residual auction for the 2025/2026 Delivery Year, as well as future auctions, while it considers changes to its capacity markets.

Compliance**—**Reliability Standards

December 31, 2022 Form 10-K page 11. As a result of physical attacks in 2022 to electric infrastructure, the North American Electric Reliability Corporation (NERC) is studying whether the Critical Infrastructure Protection standard governing physical security should be revised. Additionally, FERC, NERC, and NERC’s Regional Entities announced a joint inquiry into the operation of the Bulk Power System (BPS) during Winter Storm Elliott that struck in late 2022 and caused power outages for millions and significantly strained the BPS in certain regions of the country. We will comply with any information requests that we may receive as part of this joint inquiry. Relatedly, in February 2023, FERC approved additional reliability standards governing extreme cold weather preparedness and operations, which will go into effect in 2024. We continue to analyze these new standards.

State Regulation

New Jersey EMP and Future of Gas Stakeholder Proceeding

December 31, 2022 Form 10-K page 12. In January 2023, the New Jersey governor’s office announced the commencement of planning for the development of a new EMP for release in 2024 to update and expand upon the existing EMP and consider recent state and federal policies and how federal funding can provide additional support for advancement of critical clean energy policies. Subsequently, in February 2023, Governor Murphy issued three EOs regarding clean energy, electrification, and gas emissions targets, including accelerated goals for building and vehicle electrification to be included in the development of the 2024 EMP. One of those orders directs the BPU to immediately convene a stakeholder process on the future of gas to develop a plan to meet the State’s current EMP goal to reduce emissions by 50% versus 2006 levels by 2030. In March 2023, the BPU opened a stakeholder proceeding to implement such EO but has not yet indicated a schedule or format for the proceeding. We anticipate that this proceeding will consider the continued provision by natural gas utilities of critical services and well-paying jobs to New Jersey residents and businesses, new revenue streams for natural gas utilities (e.g., conversion of existing facilities to district geothermal), and how to minimize investment in new natural gas infrastructure to avoid potential stranded assets. We cannot predict the impact on our business or results of operations from the EMP, the Future of Gas proceeding, or any laws, rules, or regulations promulgated as a result thereof, particularly as they may relate to PSEG Power’s nuclear energy generating stations and PSE&G’s electric transmission and gas distribution assets.

Stakeholder Proceeding on Gas Competition, BGSS

In February 2023, the BPU announced that it would open a new docket to conduct a stakeholder proceeding regarding gas supply issues previously raised by competitive gas suppliers, including third party suppliers’ participation in New Jersey gas distribution companies’ annual BGSS filings, and other aspects of the existing BGSS construct.

Energy Efficiency, Triennial Review

In March 2023, the BPU announced the issuance of a series of stakeholder meetings and request for comment in advance of the issuance of its Energy Efficiency Framework Order for the second program cycle to be implemented pursuant to the New Jersey Clean Energy Act of 2018. The Framework Order is expected to be issued on or before July 1, 2023 and is expected to set forth the energy savings targets and program requirements for the second program cycle.

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BGS Process

December 31, 2022 Form 10-K page 13. In March 2023, PSE&G filed a petition for the BPU’s approval of a BGS time-of-use rate solution for residential EV charging, which remains pending. PSE&G is participating in a working group led by BPU Staff to consider proposals for a commercial direct current, fast-charging rate solution for inclusion in the June 1, 2023 joint electric distribution company (EDC) BGS filing.

Grid Modernization

December 31, 2022 Form 10-K page 13. The BPU is currently considering revising its interconnection rules to speed up the interconnection of renewable resources to the distribution grid. The BPU will commence a rulemaking proceeding this year. We cannot predict the impact on our business or results of operations from this Grid Modernization plan or any resultant promulgation of laws, rules or regulations, particularly as they may relate to PSE&G’s electric distribution assets.

New Jersey Solar Initiatives

December 31, 2022 Form 10-K page 13. In 2019, the BPU established a “Community Solar Energy Pilot Program,” permitting customers to participate in solar energy projects remotely located from their properties, and allowing for bill credits related to that participation. In March 2023, the BPU Staff issued a straw proposal regarding a permanent Community Solar Energy Program, seeking input on issues, including eligibility requirements, registration processes, the implementation of consolidated billing for the benefit of project developers and participants, and development of a cost recovery mechanism for the EDCs.

Environmental Matters

Environmental Justice (EJ)

December 31, 2022 Form 10-K page 16. The New Jersey Department of Environmental Protection (NJDEP) has finalized its EJ regulations. The regulations supersede a previously issued EJ administrative order and require review of potential EJ impacts from a wide variety of environmental permit applications at certain designated facilities. The NJDEP may impose permit conditions or deny permits if the impacts cannot be satisfactorily mitigated. The impact of these regulations is being evaluated for both PSE&G and PSEG Power and the outcome cannot be determined at this time.

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