Public Service Enterprise Group Incorporated

What they do

PSEG operates through two main direct subsidiaries: PSE&G, a franchised New Jersey public utility incorporated in 1924, and PSEG Power LLC, formed in 1999, which earns revenue selling energy and capacity from nuclear generation and selling wholesale natural gas under a full-requirements contract with PSE&G. PSE&G provides electric transmission and electric and natural gas distribution to residential, commercial and industrial customers, serves the provider-of-last-resort role for commodity service, and also offers appliance services and invests in regulated solar and energy efficiency programs. Other direct subsidiaries include PSEG Long Island, which operates LIPA's electric transmission and distribution system under contract, PSEG Energy Holdings, which holds legacy lease investments and FERC-regulated transmission, and PSEG Services, which provides management and administrative services at cost.

Revenue drivers

• PSE&G regulated transmission and distribution — PSE&G earns margins from FERC-approved transmission tariffs and BPU-approved distribution tariffs, providing service to 2.4 million electric customers and 1.9 million gas customers across roughly 2,600 square miles of New Jersey. Regulated rate base grew from approximately $34 billion at year-end 2024 to approximately $36 billion at year-end 2025.
• PSEG Power nuclear generation and wholesale gas — PSEG Power sells energy and capacity from its nuclear generation units and sells wholesale natural gas through a full-requirements contract with PSE&G, and also enters bilateral contracts for energy, gas and other energy-related contracts to optimize its generating assets.
• Regulated clean energy and competitive services — PSE&G invests in regulated energy efficiency, electric vehicle make-ready charging infrastructure and regulated solar generation projects, and earns margins from competitive services such as appliance repair within its service territory.
• Commodity pass-through sales — Basic generation service and basic gas supply service commodity sales are supplied by third parties with BPU-set pass-through pricing, generating no margin for the utility.

Recent performance

Annual revenue rose from $9.72 billion in 2021 to $12.17 billion in 2025, with net income of $2.11 billion and diluted EPS of $4.22 in 2025. Operating cash flow was $3.30 billion in 2025 and $2.13 billion in 2024. For the second quarter of 2026, revenue was $2.55 billion, compared with $3.85 billion in the first quarter of 2026 and $2.92 billion in the fourth quarter of 2025. At June 30, 2026, total assets were $58.81 billion, shareholder equity was $17.33 billion, cash and equivalents were $192.0 million, and long-term debt was $22.74 billion. The company declared dividends per share of $2.52 in 2025, up from $2.40 in 2024.

Strategy

Management's stated business plan is to grow by allocating capital primarily toward regulated investments, aiming to improve the sustainability and predictability of the business while realizing value from carbon-free nuclear generation. For 2026-2030, the regulated capital investment program is estimated at $22.5 billion to $25.5 billion, representing the majority of a total PSEG capital investment program of $24 billion to $28 billion. Management expects these investments to produce a compound annual growth rate in regulated rate base of 6.0% to 7.5% from year-end 2025 to year-end 2030. The low end of the range assumes extensions of the Gas System Modernization Program and Clean Energy Future energy efficiency program beyond currently approved timeframes, while the upper end includes potential incremental investments to address demand growth. Nuclear facilities retain production tax credit downside price protection from 2024 through 2032.

Risks

• Regulatory approval and recovery — PSE&G's proposed investment projects or programs may not be fully approved by regulators and its capital investment may be lower than planned, while its ability to recover costs and earn returns on authorized investments depends on state and federal regulatory outcomes.
• Resource adequacy and affordability — Significant resource adequacy challenges that present affordability and reliability concerns could prompt policymakers to adopt responsive measures that materially and adversely affect the business, strategy, growth rates, cash flows, results of operations and financial condition.
• Nuclear operations — Risks from owning and operating nuclear facilities include increased nuclear fuel storage costs, compliance with the Atomic Energy Act and trade control, environmental and other regulations, operational and financial risks, and dependence on adequate nuclear fuel supply and PTC support.
• Physical and cyber threats — Equipment failures, gas explosions, accidents, critical operating technology or business system failures, natural disasters, severe weather, terrorism, sabotage, physical attacks, security breaches and cyberattacks could impair the ability to provide safe and reliable service.

Outlook

Management expects regulated capital investment of $22.5 billion to $25.5 billion over 2026-2030 and a regulated rate base compound annual growth rate of 6.0% to 7.5% from year-end 2025 to year-end 2030. The company continues to invest to meet growing energy demand, modernize infrastructure, improve reliability and resilience, and expand energy efficiency, supported by higher working capital recovery approved in the distribution rate case. Nuclear generation retains production tax credit downside price protection from 2024 through 2032. The company cautions that forward-looking statements are subject to the risk factors described in its SEC filings.