Public Service Enterprise Group (PEG) FY2025 results: revenue $12.2 billion, up 18.3% on the year

Public Service Enterprise Group was incorporated in New Jersey in 1985 and is headquartered in Newark. It is a public utility holding company that, through its wholly owned subsidiaries, is a predominantly regulated electric and gas utility and a nuclear generation business. Its business plan is to allocate capital primarily toward regulated investments and to realise the value of what the filing calls the consistent and reliable carbon-free generation from its nuclear units. The two main subsidiaries are PSE&G, the regulated utility, and PSEG Power. Its agreements with all six unions remain in place until 2027.

PSE&G

A New Jersey corporation incorporated in 1924 and a franchised public utility in the state, PSE&G provides electric transmission and electric and natural gas distribution to residential, commercial and industrial customers, and is also the provider of last resort for gas and electric commodity service in its territory. It distributes to 2.4 million electric customers and 1.9 million gas customers across approximately 2,600 square miles running diagonally across New Jersey, an area where approximately 6.8 million people, or about 74 percent of the state's population, live, including its six largest cities and approximately 300 suburban and rural communities. It also offers appliance services and repairs across the territory and invests in regulated solar generation, energy efficiency and related programmes.

Transmission, the movement of electricity at high voltage from generating plants to substations and transformers where it is stepped down for distribution, is billed under tariffs approved by the Federal Energy Regulatory Commission. Distribution, the delivery of electricity and gas to the customer's home, business or industrial facility, is billed under tariffs approved by the New Jersey Board of Public Utilities. The commodity itself is managed by separate basic generation service and basic gas supply service suppliers, priced by the state board as a pass-through, which produces no margin for the utility.

Transmission uses formula rates, under which the owner annually determines its requirements through a fixed formula covering operating costs and a return of and on capital investment, with rates going into effect each January based upon the company's own annual projection and trued up later to actual expenses and capital expenditure. Transmission earnings are not affected by sales volumes. The current approved transmission rates include a 50 basis point adder for the company's membership in PJM as a regional transmission organisation. Distribution rates are set in periodic rate cases before the state board, and the order settling the most recent electric and gas distribution base rate case took effect on 15 October 2024.

Under a Conservation Incentive Program implemented after a 2021 regulatory approval, distribution margin is trued up to a rate case-approved baseline per customer for the majority of customers, so over 90 percent of electric and gas distribution margin now varies only with the number of customers. Electric sales were 40,561 GWh in 2025 and gas sales 2,633 million therms, with commercial customers taking 57 percent of electric and 38 percent of gas volumes. The filing says load has modestly decreased in the past because of a decline in larger industrial customers and greater energy efficiency, and that a significant increase is anticipated from electric vehicle adoption, the expansion of data centres and other large users, customer growth and other electrification.

The state board has approved a series of infrastructure, energy efficiency, electric vehicle and renewable energy investment programmes with cost recovery through various clause mechanisms. Those in progress include a $2.9 billion energy efficiency programme approved in 2024 for six years, a $1.6 billion predecessor approved in 2020, a $1.4 billion third phase of the gas system modernisation programme approved in 2025, a $902 million extension of its second phase, a $511 million infrastructure advancement programme and a $166 million electric vehicle programme.

PSEG Power

A Delaware limited liability company formed in 1999 out of the deregulation and restructuring of the New Jersey electric power industry. It earns primarily by selling energy and capacity from its nuclear units and by selling wholesale natural gas under a full-requirements contract with PSE&G, and it also enters bilateral energy, gas and other contracts to optimise the value of its generating assets and gas supply obligations. Where natural gas is available beyond PSE&G's actual daily needs it sells that gas to other customers and shares the proceeds with PSE&G's customers.

Nuclear capacity was 3,758 MW at the end of 2025, all of it in New Jersey and Pennsylvania and all within the PJM regional transmission organisation. The filing describes this generation as base load: units that run the most and are typically called to operate whenever available, with low variable operating costs from efficient operations and relatively lower-cost fuels, measured by capacity factor. Nuclear fuel comes under long-term contracts covering uranium purchase, conversion, enrichment and the fabrication of fuel assemblies.

Federal law established a production tax credit for nuclear electricity generation that began on 1 January 2024 and runs through 2032, at a rate of up to $15 per MWh subject to adjustment for a facility's gross receipts and prevailing wage rules. PSEG recorded no such credits for any of its nuclear units in 2025 because gross receipts exceeded the level at which they would be received. Its Salem 1, Salem 2 and Hope Creek plants were also awarded zero emission certificates by the state board through May 2025, worth approximately $10 per MWh from the New Jersey electric distribution companies.

The other subsidiaries

PSEG Long Island has operated the Long Island Power Authority's electric transmission and distribution system in New York since 2014 under a 12-year operating services agreement that expired on 31 December 2025, and a five-year extension was approved in 2025. A competitor in the bidding process sued the authority over the process; the authority's motion to dismiss was granted by the New York Supreme Court in December 2025 and the competitor appealed in January 2026. Under the agreement PSEG Long Island acts as the authority's agent, is prefunded for pass-through operating expenditures, receives a fixed management fee and is eligible for an incentive fee contingent on meeting performance metrics.

Energy Holdings primarily holds legacy lease investments and competitively bid, federally regulated transmission. A services company provides management, administrative and general services to the group at cost.

From Public Service Enterprise Group's annual report on Form 10-K for the year ended 31 December 2025. The filing

Written from the 10-K filed 26 February 2026: read the full 10-K.