This report does not constitute a rating action. Overview Key strengths Key risks Production tax credits (PTCs) provide downside protection for merchant cash flows. The company has a 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 2028-2029 Pennsylvania-Jersey-Maryland (PJM) Interconnection capacity auction mitigate exposure to volatile power prices. PSEG Power is a strategically important subsidiary to parent Public Service Enterprise Group Inc., which offers parental support through a corporate money pool for liquidity needs. PSEG Power’s nuclear fleet demonstrated strong operational reliability in first-half 2026, supported by favorable outage scheduling and ongoing strategic transitions in fuel cycle management. PSEG Power’s highly reliable
