Public Service Enterprise Group Incorporated (PEG)

Public Service Enterprise Group (PSEG) reported on 4 August 2026 that second-quarter net income was $334 million, down from $585 million a year earlier 3. Its own measure, operating earnings, which leaves out trust-fund and market-value swings, rose to $425 million from $384 million 3.

The quarterly report says the fall in net income came mainly from market-value losses on power contracts in 2026, set against gains a year earlier 2. Higher capacity revenue and gas sales at the power business, and more spending on utility programs, offset part of it 2.

The company kept its 2026 operating earnings guidance at $4.28 to $4.40 per share 3. Chair and chief executive Ralph LaRossa also reaffirmed a 6% to 8% growth outlook for operating earnings through 2030 3.

The open question is whether PSEG signs long-term contracts to sell its nuclear output, which the company says it continues to explore 1.

The roots go back to 1903, when the Public Service Corporation of New Jersey was formed from four trolley companies and a power company 8. It kept merging gas, electric and trolley firms across the state 8. PSE&G, the utility at the centre of the business today, was incorporated in 1924 1.

In 1980 the transit business was sold off, which left PSE&G only in energy 8. PSEG itself was incorporated in 1985 as the holding company above PSE&G 81.

New Jersey deregulated electric power, and in 1999 PSEG Power was formed as a result of that restructuring 1. In 2014 PSEG Long Island began operating the Long Island Power Authority's grid under a contract 1.

The next stretch was a turn toward regulated utility work 4. In 2021 PSEG Power retired Bridgeport Harbor Station Unit 3, its last coal plant, and sold its Solar Source portfolio 4. In April 2021 it took a 25% stake in Ocean Wind, a 1,100-MW offshore wind farm, from Ørsted 4.

In August 2021 PSEG agreed to sell its 13 generating units, 6,750 MW in all, to a fund controlled by ArcLight Capital Partners for about $1.92 billion 45. The New Jersey and Maryland part closed in February 2022, and the rest was due in the first quarter of 2022 5.

The stated aim was a more predictable business with less exposure to power prices 4. The company kept its nuclear plants 4. On 31 May 2023 it sold its Ocean Wind stake back to Ørsted, which reimbursed all of PSEG's cumulative outlays in the project 6.

Revenue was $11.24 billion in 2023, $10.29 billion in 2024 and $12.17 billion in 2025 1. The 2025 rise came largely from the 2024 distribution base rate case, which lifted utility delivery revenue by $577 million, and from higher energy and capacity prices at the power business 1.

PSE&G, the regulated utility

PSE&G delivers electricity and natural gas to 2.4 million electric and 1.9 million gas customers across about 2,600 square miles of New Jersey 1. Its territory is home to about 6.8 million people, or 74% of the state 1.

It earns its return on the wires and pipes it builds, not on the energy it sells 1. The cost of default electricity and gas supply is passed through to customers with no margin 1. High-voltage transmission rates follow a formula, and local delivery rates come from state rate cases 1.

A 2024 rate case set a $17.8 billion rate base for distribution, the investment on which it earns a return, with a 9.6% return on equity 1. Total regulated rate base was about $36 billion at the end of 2025 1.

Approved programs include a $2.9 billion energy efficiency plan and a $1.4 billion gas main replacement program 1. The electric system has about 25,000 circuit miles of line and 871,000 poles, and the gas system about 18,000 miles of mains 1. PSE&G also owns 158 MW of solar 1.

PSEG Power and the nuclear plants

PSEG Power owns 3,758 MW of nuclear capacity in New Jersey and Pennsylvania 1. It owns Hope Creek outright, 57% of the two Salem units and 50% of the two Peach Bottom units, which Constellation Energy Generation operates 1.

In 2025 the units generated about 30.9 terawatt hours at a capacity factor of 91.2%, meaning they ran at that share of their theoretical maximum output 1. It sells electricity and capacity into the PJM grid, hedged ahead, and gas to PSE&G 1.

A federal production tax credit for nuclear power, up to $15 per megawatt hour, gives downside protection from 2024 through 2032 1. No credit was recorded in 2025 because gross receipts were above the level that earns it 1.

Long Island and transmission

PSEG Long Island runs the Long Island Power Authority's grid under a contract, and a five year extension was approved in 2025 1. A competing bidder sued LIPA over the process 1.

In December 2023 PJM awarded PSEG a transmission project of about $424 million in Maryland and northern Virginia, due in service in 2027 1. The company says it does not currently believe a 2027 date is reasonably achievable 1.

People

Ralph LaRossa has been chair of the board since January 2023 and president and chief executive since September 2022 1. Daniel Cregg has been chief financial officer since October 2015, and Charles McFeaters has led PSEG Nuclear since May 2023 1.

Rivals and problems

PSE&G's delivery business is not affected when customers pick another supplier, since it earns on delivery, not on the commodity 1. The nuclear plants compete with other generators in the PJM market 1.

In early July a severe storm cut power, and PSE&G said it reconnected about 380,000 customers with nearly all restored within 24 hours 3. A New Jersey law passed in June 2026 requires transmission owners to join a regional grid operator from 2027, which could cost PSE&G about $40 million a year in net income 2.

In February 2025 LaRossa said of the PJM capacity market, "I don't know if there is a PJM market anymore" 7. Large-load connection requests at PSE&G had jumped to 4.7 GW from 400 MW a year earlier 7.

The umbrella, in words

PSEG is a holding company that works through wholly owned subsidiaries 1. Its two direct operating arms are PSE&G and PSEG Power LLC 1.

PSEG Long Island LLC operates the Long Island grid under a contract 1. PSEG Energy Holdings holds legacy lease investments and competitively bid transmission 1. PSEG Services provides management services at cost 1.

PSEG Power owns Hope Creek, owns 57% of Salem and owns 50% of Peach Bottom 1. The link with LIPA is an agreed contract, not ownership 1. PSE&G's bonds are secured by a first mortgage on substantially all of its property 1.

The company expects 2026 operating earnings of $4.28 to $4.40 per share and a 6% to 8% growth outlook through 2030 3.

PSEG's plan is $24 billion to $28 billion of capital investment, with $22.5 billion to $25.5 billion regulated for 2026 to 2030 1. The company says it can fund this without new equity or asset sales 3. It expects regulated rate base to grow 6.0% to 7.5% a year from year-end 2025 to year-end 2030 1.

On the nuclear side, PSEG expects a 20-year license extension for Salem and Hope Creek and is planning power uprates at Salem Units 1 and 2 1. A second renewal would extend licenses through 2056 and 2060 for Salem 1 and 2, and 2066 for Hope Creek 1.

PSE&G currently anticipates filing by the end of 2026 to update its base rates 2. Its net zero emissions goal was moved from 2030 to 2050 1.