Public Service Enterprise Group Incorporated
Public Service Enterprise Group Inc. is a New Jersey-based utility holding company operating through regulated electric and gas utility subsidiaries and a nuclear generation business. Its core activities include electric transmission and distribution, natural gas distribution, regulated clean-energy programs, and nuclear power generation in the Mid-Atlantic region of the United States.
Fiscal year 2025 · change from previous year
Development 2020–2025
Business
Share of revenueDelivery of electricity to residential, commercial, and industrial customers in New Jersey under regulated tariffs.
Delivery of natural gas to retail customers in PSE&G's service territory under approved rates.
Transmission formula rates, investment recovery clauses, and pass-through regulatory mechanisms.
Nuclear plant output sold into wholesale power markets through energy, capacity, and ancillary services.
Appliance repair and other ancillary services within the utility service territory.
Customers
PSE&G serves end-use utility customers across its New Jersey franchise, including households, commercial businesses, and industrial facilities that need electric and gas delivery. PSEG Power sells wholesale nuclear output into PJM markets, where counterparties are market participants rather than retail end users. The company also serves customers participating in regulated energy-efficiency, clean-energy, and appliance-service offerings.
Households in PSE&G's service territory buying electric and gas delivery, commodity supply, and related utility programs.
Businesses and industrial users buying regulated delivery service and, where applicable, commodity supply.
PJM market counterparties purchasing nuclear energy, capacity, and ancillary services.
Customers enrolling in energy-efficiency, EV make-ready, and other regulated clean-energy initiatives.
Retail customers purchasing repair and maintenance services within the utility territory.
Strategy
PSEG's strategy is built around regulated capital investment, infrastructure modernization, and clean-energy programs that expand the utility rate base. The company also seeks to capture the value of its nuclear fleet through carbon-free generation and wholesale market participation, while maintaining a business mix that is more predictable than merchant power alone.
Regulated projects support rate-base growth and more predictable utility earnings.
A stronger grid and gas system are needed to serve load growth and improve reliability.
Nuclear assets provide wholesale market exposure and low-carbon output.
Geography
The company is centered in New Jersey, where PSE&G serves a dense, urbanized utility territory covering much of the state. Its nuclear generation and wholesale activities are tied to PJM, the Mid-Atlantic power market, while the corporate headquarters is in Newark, New Jersey. Geography matters because the business is highly concentrated in one regulated state, with wholesale generation exposed to regional market conditions.
Risks
PSEG faces regulatory, execution, and market risks tied to a capital-intensive utility and nuclear portfolio. Its results depend on approvals from state and federal regulators, successful project construction, cyber and operational reliability, and wholesale power and fuel market conditions.
- Regulatory approval and recovery riskImpact: HighLikelihood: Medium
Utility earnings depend on BPU and FERC-approved rates, clauses, and recovery mechanisms.
Exposure - Project execution and permitting riskImpact: HighLikelihood: Medium
The business plan relies on large T&D, gas, and clean-energy projects that must be built on time and on budget.
Exposure - Cybersecurity riskImpact: HighLikelihood: Medium
Operations depend on IT and operational technology systems for generation, grid, and customer service.
Exposure - Wholesale market and commodity price riskImpact: MediumLikelihood: Medium
Nuclear generation is sold into PJM markets and hedged with derivatives, creating exposure to price volatility.
Exposure - Single-state concentration riskImpact: Medium
Most regulated operations are concentrated in New Jersey, so state policy and local demand trends matter disproportionately.
Exposure: New Jersey utility franchise
Accounting
Judgemental itemsPSE&G matches revenues and costs through BPU-approved mechanisms, affecting timing rather than underlying cash generation.
Impact: Delivery, clause, and commodity revenues can be deferred or trued up later
Wholesale energy hedges are marked to market when they do not qualify for hedge accounting.
Impact: Commodity price movements can create significant unrealized gains or losses
Utility and nuclear assets require periodic assessment of useful lives and recoverability.
Impact: Regulatory changes, market shifts, or early retirements could trigger write-downs
Benefit obligations depend on discount rates, return assumptions, mortality, and healthcare trends.
Impact: Small assumption changes can materially affect expense and liabilities
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Last updated: 24/09/2026