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 third 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 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 2.

If anyone should require operator assistance during the conference, please press star 0 on your telephone keypad. As a reminder, this conference is being recorded today, November 2, 2026, and will be available for replay as an audio webcast on PSEG's Investor Relations website at investor.pseg.com. I would now like to turn the conference over to Carlotta Chan.

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 or loss 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 material. Following our prepared remarks, we will conduct a 30-minute question and answer session. I will now turn the call over to Ralph LaRossa.

Thank you, Carlotta, and thank you for joining us to review PSEG's results for the third quarter of 2026. Starting with our financials, PSEG reported net income of 76 cents per share and non-GAAP operating earnings of $1.15 per share for the third quarter. Bringing our results for the first nine months of 2026 to $2.91 per share of net income and $3.56 per share of non-GAAP operating earnings. CSEG continues to achieve solid operational and financial results, enabling us to deliver reliable utility service and generate the carbon-free baseload generation our customers expect. Our financial results for the third quarter and year-to-date period align with our expectations for the full year, and we are reaffirming PSEG's guidance for 2026 non-GAAP operating earnings in the range of $4.28 to $4.40 per share. Continuous investments in PSEG's energy efficiency programs and transmission were the main contributors of growth in utility margin and were offset by higher depreciation and interest costs as well as the timing of taxes. And the PSEG power and other The absence of last fall's Hope Creek refueling outage resulted in lower O&M, which, combined with an increase in realized market prices, higher nuclear generation, and gas operations, drove the improvement in PSEG's power results. Turning to our third quarter operations, PSEG faced severe weather throughout the third quarter, which highlighted our best-in-class storm response, our commitment to service excellence, and the customer value of our investments in resilience, reliability and the modernization of our electric and gas systems. A nor'easter hit our service territory in September, bringing severe wind gusts and heavy rain and affected approximately 70,000 PSE&G electric customers. Despite widespread tree damage and challenging conditions, nearly all affected customers were efficiently restored within 24 hours. Our gas operations also remain stable throughout this multi-day event with no storm related customer outages. I'm also pleased to report that PSEG Long Island is on track for its most reliable year on record since life has started the operating service management model and customer satisfaction metrics are all continuing to move in the right direction. Back in New Jersey, PSE&G filed its Clean Energy Future EE2.5 proposal in late September in response to the BPU's recently adopted framework for a one-year extension of the EE2 triennium. Our filing highlights the success and efficacy of our EE programs, which generate over $1 billion in annual customer savings, having helped nearly 525,000 residential and business customers save energy and lower utility bills since the program began in October of 2020. PSE&G's EE investments have also supported approximately 9,300 jobs statewide over the past six years, and we continue to expand the use of union labor in these EE roles. And an update on some good news for customers is that PGAM has prospectively reduced wholesale transmission rates for PSE&G customers. This was due to our collaboration with the state, which resulted in a FERC ruling earlier this year on transmission cost allocation, favorable to our customers, and we expect to file in early 27 to credit the dollars back to those retail customers. Also on a state level, we note several constructive regulatory actions the BPU has taken over the past quarter that include, one, the BPU's approval of our gas filing to lower residential gas bills by 5%, effective October 1st, 2026. Second was the approval of our GSMP2 extension petition to recover investments made through May of 2026, which was also effective on October 1st. Third was the approval of our Clean Energy Future electric vehicle recoveries for investments made through year-end 2025. And fourth was the approval of our Infrastructure Advancement Program, or IAP, request to recover the remaining investments through the year end 2025. For these last two items, a reduction in another filing was used to offset the bill impacts of these recoveries. During our second quarter, Paul, we mentioned that PSE&G was planning to file for updated base rates by year end 2026. Over the past several months, we have worked constructively with the Sherrill administration to help meet the goals of the two executive orders issued earlier this year. In line with the spirit of those executive orders and the governor's affordability agenda, we anticipate filing a proposal with the New Jersey BPU to address the regulatory lag of capital investments made since our last distribution rate case. We look forward to providing you with more details shortly. Also at the BPU, the ongoing study on modernizing New Jersey's electric utility business model has progressed to its second phase.

and we are actively participating in the board stakeholder proceedings.

This initiative is focusing on cost discipline, financing modernization, targeted incentives and shared savings, and staged performance-based rate making. We believe these and other options mentioned in the phase one report, including multi-year rate plans, performance-based rates, performance incentive metrics, earning sharing mechanisms, decoupling, and Shared Saving Mechanisms offer constructive paths to strengthen the connection between customer value, cost accountability, and timely recovery of prudent investment. Now turning to PSEG power. At PSEG Nuclear, we supplied the regional grid with 8.2 terawatt hours of reliable, carbon-free baseload energy during the third quarter, operating a capacity factor of 95.5%. Salem Unit 1 recently entered its fall refueling following a 491-day breaker-to-breaker run, matching Salem Unit 2's back-to-back breaker-to-breaker run posted earlier this year. BSEG Power continues to generate stable cash flows that help fund our regulated investments while pursuing high-value regional growth opportunities. Turning briefly to our regional power market, PJM continues to have a significant resource adequacy problem. and will require both existing and new generation to meet ever increasing electric demand in the region. We are following the activity of FERC and PJM regarding PJM's reliability backstop procurement and interim resource adequacy service filings and considering how these developments interplay with our nuclear contracting efforts. In September, FERC accepted certain aspects of the RPP but rejected others. resulting in an anticipated delay of the RPP auction to March 2027 or later. The FERC orders did not disturb the bilateral matchmaking process to match new generation with new large load customers, which has presented opportunities for us. FERC's rejection of PJM's IRAS filing reinforces that the focus has shifted to the states to address retail curtailment and cost issues associated with large load customers. and we look forward to continuing to work with New Jersey as it implements these rules. PSEG power is continued developed terms with large load entities for contracting arrangements involving existing nuclear production, future nuclear upgrades and other generation opportunities. Similar to recently announced power purchase agreements in the PJM region and specifically in New Jersey, which we believe can produce tangible benefits for PSEG, supply certainty for large loads, and create economic development opportunities for our state and the regional economy. In early October, PSEG Nuclear participated in the first meeting of the Governor's Nuclear Task Force, which outlined the initial work plans to establish the process for evaluating new nuclear development in the state. We continue to support and enable development at our site in Salem County. We are reaffirming both our full-year 2026 non-GAAP operating earnings guidance and PSEG's five-year growth outlook of 6% to 8% through 2030. In summary, our teams continue to execute our business plan, we are delivering solid results and customer value, and we are making steady progress on the regulatory front. I'll now turn the call over to Dan, who will review the financial results, and then I'll rejoin the call for the Q&A session.

Thank you Ralph and good morning everybody. PCG recorded net income of 76 cents per share for the third quarter of 2026 compared to a dollar and 24 cents per share in 2025 and non-GAAP operating earnings were a dollar and 15 cents per share in the third quarter of 2026 compared to a dollar and 13 cents per share in 2025. These quarterly results bring our year-to-date 2026 net income to $2.91 per share and non-GAAP operating earnings to $3.56 per share. We've provided you with information on slides seven and nine regarding the contribution to net income and non-GAAP operating earnings by business for the third quarter and nine months ended September 30th, 2026.

Wise 8 and 10 contain waterfall charts that take you through the net changes for the quarter and year-to-date periods over the prior year in out-of-gap operating earnings. The Commission margin increased by $0.02 per share driven by higher investment. Our distribution margin increased by $0.03 per share compared to the year ago period, partially reflecting higher investment in distribution and energy efficiency and an increase in the number of customers.

On the expense side, distribution OM was up $0.10 per share compared to the third quarter of 2025. depreciation and interest each rose by a penny per share due to ongoing capital investments, incremental debt, and the replacement of maturing debt at higher long-term interest rates. Taxes and other had a net unfavorable impact of four cents per share driven mostly by the timing of taxes, which is recorded through an annual effective tax rate that nets to zero over a full year. Weather conditions during the third quarter as measured by the Temperature Humidity Index, were 3% cooler than normal, but 2% warmer than the third quarter of 2025. As a reminder, the Conservation Incentive Program, or CIP, mechanism decouples weather and other economic sales variances from a significant portion of our distribution margin, while helping PSE&G promote the widespread adoption of energy conservation including energy efficiency and solar programs. Under the SIPP, it's the number of electric and gas customers that drives margin and residential customer growth for electric was about 1% and gas was flat over the past 12 months. The SIPP also benefits customers as higher revenues from last year's warmer than normal summer weather will continue to be refunded to electric customers and this past October 1st, PSE&G implemented a 5% decrease for residential gas customers driven by higher revenues from a colder than normal winter in early 2026. On the capital front, PSE&G invested approximately $1.1 billion during the third quarter and we are on track to execute a full year 2026 regulated capital investment plan of approximately $4.2 billion, focused on continued investments in infrastructure modernization, like the third phase of our gas system modernization program, energy efficiency, electrification initiatives, and load growth. We are also maintaining our five-year regulated capital investment plan of $22.5 to $25.5 billion through 2030. For our customers, the value of these investments means fewer interruptions, faster restoration times, and more tools to manage their energy use. During the third quarter, the VPU approved an annual revenue increase of $14 million for investments under our Infrastructure Advancement Program and approved an annual increase of $8 million for investments under our Clean Energy Future Electric Vehicles Program. Both roll-ins took effect on October 1st. Moving on now to PSCG Power and Other. For the third quarter, PSCG Power and Other reported a net loss of $130 million in 2026 compared to net income of $107 million in 2025, and non-GAAP operating earnings were $68 million in the third quarter of 2026 compared to $50 million in the third quarter of 2025. Referring to the waterfall on slide 8, for the third quarter of 2026 versus 2025, net energy margin rose by $0.04 per share, driven by higher generation and capacity prices and gas operations, partly offset by the absence of PSCG Long Island's fuel and energy management fees. O&M declined by $0.02 per share from the year earlier quarter. benefiting from the absence of last fall's refueling and fuel cycle extension work at our 100% owned Hope Creek Nuclear Unit. Depreciation and interest expense were both flat and taxes and other items had a net unfavorable impact of two cents per share in the third quarter compared to 2025. On the operating side, the nuclear fleet produced approximately 8.2 terawatt hours during the third quarter and reached 23.9 terawatt hours for the nine months ended September 30th. Capacity factors for the nuclear fleet were 95.5% and 94.3% for the same quarter and nine month periods respectively. We previously noted that PSTG Power cleared approximately 3,600 megawatts of existing capacity in PJM's July 2026 base residual auction at $325 per megawatt day for the energy year beginning June 2028 through May of 2029. As you know, the existing price collar of $175 to $325 per megawatt day will continue in effect for this December's capacity auction covering the 2029-2030 energy year. As we have stated in the past, our realized energy price for our five-unit nuclear fleet is historically aligned with the PECO zone and has traded at about a 20% discount to the more liquid PJM Western hub. Recently, the basis differential between these two hubs has widened to about a 30% discount, but our hedge position has limited mid-term exposure to this pricing move. As of September 30th, PSG Power had approximately 70 terawatt hours of expected generation output sold forward.

We have previously mentioned that we were more than 95% hedged for 2026 and have a high percentage of output sold forward for 2027 and less in 2028 and beyond.

On the nuclear PTC front, similar to 2026, we expect that our current portfolio position for 2027 will result in the realized value of our nuclear generation output being above the level at which we would receive the nuclear production tax credit, which, as you know, is adjusted annually for inflation. Touching on some recent financing activity, PCG had strong available liquidity totaling $3.9 billion as of the end of September. This includes over $830 million of cash on hand, primarily related to net PSE&G financing activity during the quarter. On the financing front this past August, PSE&G issued a billion dollars of secured medium-term notes comprised of $650 million of 10-year notes at a rate of 5.4% and 350 million of 30-year notes at 6.05%. A portion of the proceeds was used to redeem $425 million of 2.25% secured MTNs at maturity in September, with the balance used to provide cash on hand to support our capital spending plan. And also in September, PSG Power issued $400 million of five-year senior notes at a rate of 5.55%. PSCG's level of variable rate debt represented approximately 3% of our total debt as of the end of September. Our variable rate debt consisted of the unhedged portion, about $250 million, of the $500 million 364-day term loan at PSCG Power maturing in December 2026 and commercial paper. Looking ahead, our solid balance sheet supports the execution of PSCG's predominantly regulated five-year capital spending plan without the need to issue new equity or sell assets and provides the opportunity for consistent and sustainable dividend growth. In closing, we delivered solid operating and financial performance in the third quarter and year-to-date period, enabling us to maintain PSCG's full year 2026 Non-GAAP operating earnings guidance of $4.28 to $4.40 per share. ...earnings through 2030 based on our confidence in executing our five-year regulated capital investment plan that also supports a 6% to 7.5% rate-based caterer over the same period. who continue to pursue nuclear revenue opportunities and believe recently announced agreements combining capacity upgrades with existing generating output provide wins for all parties, including the economic development interests of our region. And other opportunities such as competitive transmission projects and incremental utility infrastructure projects, including system investments to connect solar and battery storage resources to the grid to meet new demand, also provide upside to our current growth outlook through 2030. Finally, we expect to introduce PSCG's 2027 Non-Gap Operating Earnings Guidance, roll forward our capital investment plan, update our rate-based and long-term earnings CAGRs, and discuss this outlook all during our 2026 year-end call in February of 2027. That concludes our formal remarks and we are now ready to begin the question and answer session.

Ladies and gentlemen, we will now begin the question and answer session for members of the financial community. If you have a question, please press the star and the number one on your telephone keypad. If your question has been answered and you wish to withdraw your polling request, you may do so by pressing the star and the number two. If you are on a speakerphone, please pick up your handset before entering your request. One moment please for the first question. The first question comes from the line of Char Parisa with Wells Fargo. You may proceed with your question.

Hey guys, good morning.

Hey Char, how are you?

Hey Ralph, how you doing?

We're good.

Excellent, excellent. Just on, Ralph, on the head strategy for powers, we're thinking about kind of the risks emerging. It sounds like the impact is more modest than people gave it credit for. I guess, are you assuming it normalizes in a couple of years? What instruments you're using? Is it FTRs? And just any way to quantify what proportion of the forward sold power could be impacted from basis changes, maybe on an annual basis? Thanks.

Yeah, well, I'm going to let Dan give you a little more details. Let me just give you a high level on the whole thing. And there was a ton in your questionnaire. So we haven't been given a lot on the hedge details. But just think about it this way, Sharda. The entire PJM grid has, the prices have gone up, right? And so I think we've been saying for many years to take a look at the price at the PICO hub. And so the PICO hub has gone up. It hasn't gone up as quickly as the West hub has gone up. So where we hedge has gone up, maybe not as much as some folks have been thinking for our power business, but that is where we hedge, and that is what we've been articulated for quite some time. The basis differential between the two shows up if you're not covered in both places, and I'll let Dan take a little more detail for you from there.

Yeah, especially as you look at this year and into next year, we have a very balanced hedge position given the ability to move things to PECO. I think that another thing to put things in context, if you think about what we had said for a long time was that we were hedging on a fairly strict, ratable approach. When the PTC came in, we described that as a put option that we had, and it essentially had us thinking more about the overall position and stepping a little bit away from the pure ratable approach. And I think that that same thinking goes into where we are now and how we have approached it. We're taking a look at what the market is as we're moving into our hedges. And with respect to products, I think, which is another part of your question, you've got the ability to put on direct hedges where we are at that PICO zone as well as FTRs but also some swaps and some options. And so there's a host of products that we utilize to try to manage the overall position and ultimately we will get paid at that PICO hub.

Got it. Okay, that's perfect. And then just lastly on the recent PJM deals, I mean obviously it seems like The scarcity value for nuclear electrons is getting higher even though the last deal didn't come with clean energy attributes. Maybe just elaborating on your prepareds, just updated thoughts on Pennsylvania or New Jersey contract potential and is it even possible to do a deal in New Jersey with the optics there? Thanks.

Yeah, I think you've seen a deal recently that talked about New Jersey to some degree. I think the last Constellation deal talked about some of the upgrades that are going on at our Salem plant that we've been enabling. And I think that you saw that the governor applauded that as a way to bring the tech companies to the table to pick up their fair share. of some of the costs that are being incurred in the grid and in the energy market as a whole. So I think there's possibility to do things, certainly with that incremental power that you're seeing at that location. I think the question about how much we're going to see data centers showing up here in New Jersey remains an open item. We've talked about that for quite some time. And even I think this election season, we have some municipalities that are that are voting on it at that level because the governor has said she's leaving many of the decisions up to the local municipalities to decide as far as whether or not they want to embrace the data center industry or not. And I think her plan is a good one and is kind of putting that at the place where folks have to make that decision and deal with the data centers directly. So I think there's a possibility, but I'm not, and I know, Dan, you want to give a little more color on progress in that area?

I think, sure, just the way to think about it is that there remains some strong interest. I think these things don't happen overnight, but you have started to see some incremental deals get done. I think Ralph's take on it from a New Jersey perspective is spot on. I think there was an appreciation and an acknowledgement for what that was. And so conversations continue and advance. and I think we feel pretty good about where they are but don't have anything to announce right now.

Got it. No, perfect. Super helpful caller, guys. See you in about a week. Appreciate it.

Thank you. Our next question comes from the line of Richard Sunderland with Truist Securities. You may proceed with your question.

Hey, Rich. Hey, good morning. Thanks for the time today.

Thanks for calling in.

Ralph, I wanted to pick up some of the language around your upcoming PSE&G filing. Is that sort of a shift away from a full rate case as you sort of spoke to on 2Q? And is this focused on rate changes or more of accounting efforts around how that lag has built into the business since the last rate changes? Any sort of bigger picture on that would be helpful.

Yeah, Rich, I would try to keep it at a very high level now because we, you know, and I appreciate the question as we articulated it on a call. Look, we're looking for a solution that supports the governor's initiative. We have for the last, we talk about it ad nauseum on these calls and then other interactions about how we're aligned with the state's policy. And that goes back, you know, two, three, four administrations here. We've always been successful in doing that. And we think that there might be an opportunity here in a filing to do just that, stay aligned and still address the regulatory lag that exists. So we expect that we'll be making a filing. That's what I said in the prepared remarks. And as soon as we make that filing, we will communicate the details of that to you. But it's all about staying aligned and enabling the governor's policy.

Okay, okay, understood. I guess, you know, maybe turn this to the bigger picture and, you know, the BP phase two efforts, anything out of there that's informing how you're viewing the potential around this filing or anything you can speak to around just kind of the overall backdrop in the state and how that's informing your strategy around this filing and presumably others thereafter?

Yeah, I think, look, the timing of all of those recommendations that'll come out of, I think it's E3 as the consultant that's been working on that with the BPU, that'll come out and be made. I think, you know, if we were to make a filing that could be aligning, continuing the alignment from our standpoint with level setting our rates as the state rolls out new regulatory policies, but I think if you take a hard look at what's there and what E3 has been talking about, these are things that the governor has said in the past and things that the companies have said in the past here in New Jersey. So we continue to look forward to that. We continue to participate in those proceedings. But I think our filing that we're doing here is all about staying aligned with the governor's goals to keep rates flat for as long as possible. And we'll see what we can do to be aligned there.

Understood. Sounds like a lot more to come. I'll leave it there. Thank you.

Thank you. Our next question comes from the line of Matt Petit with Barclays. You may proceed with your question.

Hey, it's Nick Campanella on for Matt. Hope you can hear me okay.

Hey, Nick.

Hey, thanks for the time. Yeah, thank you for all the disclosures. I really appreciate it. Maybe we should follow up there on the basis of You said that you're going to be above PTC level in 27 still despite the widening basis, maybe just to confirm that. And then how do you see that case playing out for 28?

Yes, so we have said that, and that is the case to confirm. Your question is confirmatory to what we said. And I think, look, we can look to the forwards for where markets are right now. I think we've got... you know over a year before we start to get into 2020 and not going to predict where markets are going to go I think what we look for more fundamentally is what the supply demand balance is and I think continuing to watch what's coming online both from a generation and a demand standpoint is ultimately what's going to drive that but I think what we've seen is increasing announcements about demand more so than what generation is coming on and and Generation continues to be a little bit of a struggle to see stuff coming on quickly other than maybe some solar and storage. So I think you're probably going to continue to see some upward pressure, but that'll manifest itself in the forward as we go forward.

Great. And then a lot of moving pieces as we kind of get ready for your next full fourth quarter update. You know, when we kind of take into account, it seems like you can absorb the basics, and you're also maybe getting kind of a true up and lag at the utility, but I guess we'll see what the filing looks like. Just how do you kind of frame the six to eight, 27 and beyond? Can you be outside of the range in any given year? Do you still see yourself kind of growing inside of that range? Any comments there would be helpful.

Yeah, Nick, I cannot emphasize enough the reaffirmation that we made of our six to eight growth rate. take a lot of time and a lot of pride in going through that. We stand by it, and that's where we think we're going to be. So that's why we came out and reaffirmed.

Thank you very much.

Thank you. Our next question comes from the line of Nick Amasuchi with Evercore ISI. You may proceed with your question. Hey, Ralph.

Hey, Dan.

How are you guys?

Nick Gay, as we call you.

Yeah, I've been called a lot worse, sorry. I just wanted to, kind of following up on Nick's previous question too, just as we kind of think about, you know, the roll forward and kind of as we think about the next capital update, I guess, what are kind of the, what are the nearer term items that we could kind of see creep into that if we think about like competitive transmission wins, Potentially the nuclear contracting, obviously, that's, you know, that's pretty fluid. But or we think about is it going to be more solar and storage type deals?

Yeah, Nick, I don't think things have changed all that much for us from a projection standpoint of what we've been talking about for the last few quarters. I think we have that opportunity as the policies continue to to ripen here in New Jersey for us to do more on the solar and support for solar and batteries through our enabling of the grid readiness. There's some real focus on BPP, the virtual power plants here in New Jersey. It'd be a small opportunity set for the utilities, but we're all gonna participate in that. Some of it will be IT activities and so on to enable it. I think you will see some additional transmission continuing to being built in the PJM region. You know, everyone talks about this basis differential between the West and many of the other hubs here at PJM. It's not just Beco that that differential exists in. And I think that that's going to create opportunities as well through different ways that PJM comes up with its plans, whether it's market-driven solutions or what they normally do in the RTEP process. I think you're going to see more of that. I don't want to front run what that is. We'll see what PJM comes out with. And we have been a participant and a successful participant in some of those proceedings in the past. And that's that Maryland project that we have ongoing. So it's more of the same for us, but continued clarity in our line of sight.

Great. That makes sense. Perfect. Thanks, Ralph. Ben, if I could just follow up with somewhat of a cleanup item. I just want to make sure I understand it. The Salem upgrades under development, is there any of that earnings contribution within the current outlook or is that something that's going to be longer dated?

Yeah, that's within our five-year plan, Nick. So that will be on by the time we get to the end of our five-year period.

Perfect. Thanks, guys.

Thank you. Our next question comes from the line of Carly Davenport with Goldman Sachs. Your line is now open.

Morning, Carly. Morning. Thanks so much for taking the questions. Maybe just wanted to get your views on PJM's sort of latest response to the FERC on the RBP last week. You know, you've mentioned you've submitted some projects into the RBP process. So just curious if you could expand a little bit on how you're thinking about that process versus perhaps pursuing opportunities just in the bilateral market.

Well, I think it's really both, Carly. I think that, you know, I still think that the effort that's been put forth has been helpful to try to make something happen. I think it has been a little bit bumpy with the back and forth with FERC, and I think that's understandable. But I think what it probably has done more than anything else is just broaden the opportunity set to try to get some generation built for all this load that we're seeing. projected to come online as we step through the next number of years. And so, you know, they've gone back and forth with FERC, and I think there's been a little bit of frustration from timing and from where things have landed that it's a little bit of a do loop. But net-net, I still applaud the concept to try to get some generation built because we're going to need it. And I think it has, if nothing else, it has expanded the potential for some bilateral deals as well.

Got it. Okay, great. That's helpful. Thank you. And then you highlighted some of the financing activity during the quarter, I guess just with the move in interest rates and the capital plan needs. How should we be thinking about the impacts to perhaps 27 guidance or any earnings sensitivities with the move that we've recently seen in rates?

I think Dan and his team continue to do a great job of managing that. We're through most of the 26 financing that we needed. and I think we're in fine shape as we move into 27. I think if you look forward to 27, our activity will not be at the same level it was at in 26.

And we do look for opportunities to hedge into next year, Carly. I think that we're all facing a little bit of an increasing Interest rate environment, we've got the regulatory construct that helps with some of that, especially given the magnitude of our transition business. And so, you know, we're through our 26 plan and we'll move into the 27 plan in that environment, but with a little bit of an eye towards what's going on in 27 that we're looking to right now in 2026.

Thank you for the time. Yep.

Thank you. Our next question comes from the line of David Arcaro with Morgan Stanley. You may proceed with your question.

Hey, thanks. Good morning.

Hey, David. Long time. How are you?

Good, good. I was wondering how you're thinking about solar and storage investments from a regulated utility perspective, utility-owned investments in that area.

Yeah, David, we would love to. We have in the past, just to refresh everyone's memory, we had our solar for all program that we had here in New Jersey for quite some time. I was focused mainly on some of the landfill opportunities that existed, and we executed on that, and those plants are still in and running. You all know about some of the work that we did. I put some solar on poles here. We've done that in the past. And on the battery front, we were the first utility to put in a filing over five years ago now on that front. We continue to look for those opportunities. I think the policy is not yet certain here in New Jersey as to whether or not it'll move in a regulated direction or stay solely competitive. And so we're monitoring it and we're going to participate. We have the knowledge and the skills here to do that. But we don't want to front run the policy of the state. We want to align with that state policy. So as that becomes clearer, We will participate, but we will do so in a way that is wanted by the state of New Jersey.

Yeah, got it. I understood. That's helpful. And then I was just wondering, you mentioned, you know, just thinking through how to address regulatory lag. I was wondering what types of proposals might you be supportive of or, you know, considering as you think about going forward now. if it's something besides trackers, how you manage or propose new structures around regulatory lag.

Yeah, David, again, I don't want to front-run some of the discussions that we're having. It's all constructive, and again, it's all aligned with trying to keep rates flat. But stay tuned, and we will communicate as quickly as we possibly can.

Okay, got it. Thanks so much, Olivia, there. Appreciate it.

Thank you. Our next question comes from the line of Michael Sullivan with Wolf Research. Please proceed with your question.

Hey, I wanted to ask on your thoughts on the future of the capacity auction in PJM and where you think that's going. And then just as you get ready for this roll forward, how you come up with assumptions for 2031, given we're going to be on kind of the current construct out there?

Yeah, Michael, you know, that crystal ball, sometimes it gets clear and sometimes it gets a little cloudier. You know, last week, New Jersey had a pretty big conversation about energy here that was hosted by the New Jersey Business and Industry Association, and at that conference and discussion, PJM was represented and they talked a lot and there's some good press that was written up about it that discussed where PJM really wants to be the residual auction. They reinforced that they're looking for the states to pick up the capacity issues and deal with what they need to from a generation standpoint in the states. I think you've got to triangulate so many different things here. You've got to triangulate conversations like that. You've got to triangulate the RBA that Dan was talking about before, the bilateral contracts that you see taking place, some of the mandates in individual states to bring your own generation if you're going to build certain size load in those states, some of that here, some of that in other places. and I can't give you a specific answer on where we're going to be sitting in 2031, but I know what we're doing and that's continuing to look at all of those inputs and trying to come up with the best way that we can participate and be part of that growth opportunity.

Okay, great. And then I think there's another annual PJM open window coming up here. Maybe if you could just give us a sense of your expectations there for the opportunity set?

Yeah, Mike, you were talking about the transmission open window, right?

Exactly.

Yeah. Yeah. So, look, I alluded to that a little bit earlier. I think that these basis conversations that we're talking about, and again, it's not just PECO to the west, it's many of the other hubs as well, will create opportunities for RTEP-type solutions in that open window. So we'll see, we'll monitor. I think it'll be more, if our crystal ball on that is right, there will be more opportunities than there was in the most recent open window.

Okay, very helpful. Thank you.

Thanks, Michael.

Thank you. Our next question comes from the line of Jeremy Toney with JP Morgan. You may proceed with your question.

Are you there, Jeremy?

Hey, good morning. This is actually Aiden Kelly on for Jeremy. Can you guys hear me now?

We can, Aiden. How are you?

Good, good. Thanks for the time today. Just one small question on my end. Could you provide any update on PSE&G's large load inquiries? Any thoughts or color on where the total count stands at this point in time, which... I feel like in the past it was probably around 11.8 gigawatts as of December 25. Do you kind of still see that as the same level or any kind of shift in any inquiries to date?

We've been staying at about that level. I don't have the number right in front of me, but we've been staying at about that level. And I think that what we're seeing continues to be what many people refer to as edge computing opportunities rather than the large, you know, mega data centers that are up there, the hyperscaler types. So, you know, that's consistent with some of the financial industries that are supported here in New Jersey.

Great. Thanks for the color there. That's it for me. So I'll leave it there.

Thank you. Our next question comes from the line of Julian Dumoulin-Smith with Jefferies. You may proceed with your question.

Hey, good morning, team. Thank you guys for the time. I appreciate it. I wanted to come. Hey, great. Thanks for the time, guys. Appreciate it. So look, I wanted to follow up less so in the spirit of long term, but just in the near term. What about tightening the guidance range here, guys? Anything that you're seeing in the near term that's driving some ambiguities? As I hear you guys talk about hedging, that's not a 26 dynamic. As I hear you talk about rates, it's a longer dated. But look, is there anything on the regulatory front that's sort of impeding? I know your typical cadence. And again, you talk about like setting a record or a trend here. That's why I'm asking, if you will.

No, Julian, I wouldn't read too much in. I mean, we reaffirmed where we are. We haven't kind of pushed you higher or lower. You should still be thinking somewhere around the midpoint of where we are. We just kind of left it where it is because it's been consistent with us executing against it the entire year.

All right. We'll always nitpick if we can. And then if I can, with that said, how do you think about 27 here? So Nick zeroed in on it. I'm going to double down on it a little bit. How do you think about where you're hedged on 27 versus 26? And again, I know it's commercially sensitive to a certain point, but PTC floor, okay, that's a given. How do you think about where you're hedged on 26? And is it an uptick here in pricing? Because I get that there's a question of where and when you hedge that is important to consider here. And again, maybe the same is relevant for 28 here too. But really, even on 27, how do you think about just what you've hedged? I imagine a lot of it's established at this point. Is there a net increase just given the overarching trend from the last three years and given the rateable hedging program?

A net, it's just... Be clear on one thing there, Julian. The net increase in the hedging, is that what you were asking?

Well, a net increase in hedge value, i.e. the dollar per megawatt hour rate that you're getting, right? Or is there some other offset because of how and where you, more importantly, where you hedge, where basis could be an offset to that? I just want to make sure I'm hearing you clearly, because otherwise you would think that the multi-year trend we've seen, regardless of the basis, may very well provide an uptick in overall realized price. But tell me how you would put that again, because I get PTC floor is Kind of a baseline statement without giving too much specificity here.

Right. Look, I'll try to give Dan a little bit of air cover here for 30 seconds. You can add some more if you'd like. The end of the day, I think, Julie, what we were alluding to there in many of these conversations, and you just hit on it, is where are you assuming the hedge is taken? is made, and where is it being executed at? And if folks are assuming it's all at the West, they may have a different value, as you asked, in the hedge value going higher versus somebody who was thinking it was going to be at PECO. And so we've been reinforcing with folks that our hedge has been executed in the past, and it's currently, as we've talked about ad nauseum here, is at PECO. So everything has gone up, but PECO has not gone up as much as the West.

Yeah, I think, Julian, we've seen some people kind of jump on the Western price increasing and implied that for where we're necessarily going to be in our units are priced at PECO and not out there. But we also have taken care to ensure that we are putting on positions that are closer to where our price is actually going to land. I don't want to give partial guidance to the guidance we haven't given yet, which is kind of where your question goes to. But I think that we're in a pretty good spot related to what prices look like against the backdrop of the movement that you've seen over the year. I'll kind of leave it at that.

Again, Julie, we're trying to be respectful of the question, but not go into details we haven't provided.

Thank you. Our next question comes from the line of Steve D'Ambrisi with RBC Capital Markets. You may proceed with your question.

Hey, Ralph and Dan. Good morning. Hey, Steve. Just a quick one on new nuclear. I think you guys have been very clear about your appetite for new nuclear, but as a large operator and holder of the early site permit, can you just talk about how those conversations are progressing in the U.S. Maybe like a quarter or two ago, it felt like there was a lot more focus on this, and it seems like it's quieted down a little bit, and there's more of a focus, even from the administration, on up rates. Just interested to hear kind of what's going on behind the scenes.

Yeah, I think, again, alignment with our governor is all about enabling new nuclear here. She has been very vocal about the fact that she sees that as a long-term solution. for the state and beyond, the nuclear industry that is. So we've been participating where we can. And again, we think our site based upon location, based upon the early site permit. And when I say location, not just where it sits within PJM, but where it also sits as far as access to ports and ability to move large pieces of equipment easily gives us a real advantage. And so we are out advocating as strongly as we can with those conversations that you're alluding to and within those conversations that you're alluding to.

Any real visible data points that we should be watching for either in the New Jersey process or more broadly? I know you said there was an October meeting, but just like what came out of that?

Yeah, I think New Jersey continues to have the conversations. And again, the focus of the New Jersey policy conversations have been about educating and transparency for the public about what the industry is and what it might mean for energy prices here in New Jersey. So I think that first meeting was the start of that. There's a website and a few other things that have been put up by the state of New Jersey to focus on it. But I think from a data point standpoint in New Jersey, the first real action will be when the Board of Public Utilities holds its auction. for new nuclear, which was called for by the legislation that was passed last year. So that'll be the first thing here in New Jersey. Obviously, the federal government could be doing many things to help enable new nuclear, and I certainly am not going to front run the federal government on that.

Yeah, Steve, I mean, the only thing I'd add, and it's not anything that you don't know, but I think it's a very complicated, multi-party thing that folks are working on, and so that Thank you.

Our last question comes from the line of Anthony Crado with Mizuho. Please proceed with your question.

Good morning, Anthony. Good morning. What's going on? I was in Newark all day yesterday. It was a beautiful day in Newark.

Beautiful day.

I guess just maybe one question or follow-up. You talk about the potential that maybe getting a large load customer on either upgrades or existing nuclear. I guess, does that change your hedging strategy that maybe you would go more open as those conversations are going on and then I have a follow-up.

I think the way to think about it is that whatever is in place will be a contract for a portion of what you are looking to sell more broadly. So you would definitively have to take that into account as you're looking at your overall position.

Got it. And then this may be more of an EEI one-on-one question just given the time. So just Throw the flag if necessary. If we think about how hedging works, is it, and I think everyone's concern is that, you know, maybe you're short the basis at PGM West and you're long the Pico Zone, which you guys are very clear that's where you price your units, and they have this, like, exposure that you're kind of short the PGM West price. I guess, is that how the hedging works, or is that how you go about hedges? And if this is better just to pick up an EEI, let me know.

No, I mean, I think TGM West is a product that is available for you, but there's other ways to move those positions closer to your actual unit, and we do utilize those products to do exactly that.

Yeah, and Anthony, there are other people that trade in those products to listen to these calls like anybody else, so we are purposefully describing the best we can right now.

Great. That's all I had. I'll see you guys in Phoenix.

Thanks, Anthony.

Thank you. That is all the time we have for questions, and I would like to turn the floor back to Mr. LaRossa for closing comments.

Thank you very much. Thank you all for calling in. We appreciate the ongoing interest. I just want to kind of tie out a couple things. It's been a long summer, many storms, many activities that have gone on here that were challenges for the company beyond what we've talked about on this call. and I just want to thank the employees at Nuclear for the ongoing performance there. I think we just completed another breaker-to-breaker run at Salem 1. Our T&D operations both in Long Island and in New Jersey had outstanding years in a summer that was full of Friday night storms and have continued to perform very well. and we'll continue to have further conversations about the topics that we discussed today and look forward to it at EEI next week. So thanks for calling in and take care.

Ladies and gentlemen, this concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.