This report does not constitute a rating action. Overview Key strengths Key risks Production tax credits (PTCs) provide downside protection for merchant cash flows. Smaller scale and limited geographic and fuel diversity relative to peers Constellation Energy Inc. LLC and Vistra Corp. Robust hedging program and cleared capacity for the 2025/2026 Pennsylvania-Jersey-Maryland (PJM) Interconnection capacity auction mitigate exposure to volatile power prices. We expect higher capital spending over the next 12 months to reduce free operating cash flow. PSEG Power is a strategically important subsidiary to parent Public Service Enterprise Group Inc. (PSEG), which offers parental support through a corporate money pool for liquidity needs. PSEG Power has approximately $1.65 billion due in the next 12 months, which we expect
