PSEG Maintains 2026 Outlook as Q3 Operating Earnings Rise

Public Service Enterprise Group reported a modest increase in third-quarter non-GAAP operating earnings and maintained its full-year outlook, as stronger results from PSEG Power & Other offset a slight decline at regulated utility PSE&G. The company continues to target 2026 non-GAAP operating earnings of $4.28 to $4.40 per share while advancing a capital program centered on regulated infrastructure.

PSEG (NYSE: PEG) posted third-quarter non-GAAP operating earnings of $574 million, or $1.15 per share, compared with $565 million, or $1.13 per share, a year earlier. GAAP net income fell to $376 million, or $0.76 per share, from $622 million, or $1.24 per share.

The difference between GAAP and non-GAAP results included a $251 million pre-tax mark-to-market loss and a $21 million pre-tax loss related to Nuclear Decommissioning Trust activity. In the prior-year quarter, PSEG recorded a $20 million mark-to-market gain and a $70 million gain related to the trust.

For the first nine months of 2026, non-GAAP operating earnings increased to $1.78 billion, or $3.56 per share, from $1.67 billion, or $3.33 per share. GAAP net income declined to $1.45 billion, or $2.91 per share, from $1.80 billion, or $3.59 per share.

Utility investment remains on track

PSE&G contributed third-quarter net income and non-GAAP operating earnings of $506 million, down $9 million from the prior-year period. For the first nine months, the regulated utility’s earnings rose by $32 million to $1.43 billion.

Transmission contributed $0.02 per share to the year-over-year quarterly change. In distribution, higher margin added $0.03 per share, while operating and maintenance costs, depreciation and interest, and taxes and other items collectively offset that benefit.

PSE&G invested about $1.1 billion in regulated operations during the quarter. Its approximately $4.2 billion regulated capital-spending plan for 2026 remains on track. PSEG’s broader 2026-2030 capital program totals $24 billion to $28 billion, with more than 90% directed toward regulated investments, largely system replacement.

Over the 12 months ended Sept. 30, PSE&G’s residential electric customer count increased by about 1%, while its residential gas customer count was unchanged. Weather-normalized electric sales rose about 1%, and gas sales declined about 3%.

The utility replaced approximately 167 miles of gas main and about 21,435 related service lines during the same period. PSEG said the gas-system modernization program helped reduce reported systemwide methane emissions by more than 34% between 2018 and 2025.

PSE&G expects to file a proposal with the New Jersey Board of Public Utilities addressing regulatory lag on capital investments made since its last distribution rate case. Separately, an annual transmission formula-rate update filed with federal regulators in October would generate about $60 million of additional annual transmission revenue beginning Jan. 1, 2027, subject to true-up.

Nuclear operations support PSEG Power results

PSEG Power & Other recorded third-quarter non-GAAP operating earnings of $68 million, up from $50 million a year earlier. On a GAAP basis, the segment reported a $130 million net loss, compared with net income of $107 million in the prior-year quarter, reflecting the mark-to-market and Nuclear Decommissioning Trust items.

The nuclear fleet operated at a 95.5% capacity factor during the quarter, up from 92.4%, while generation increased to 8,172 gigawatt-hours from 7,903 GWh. Fuel costs rose to $59 million from $53 million, equivalent to $7.18 per megawatt-hour compared with $6.68 per MWh.

PSEG forecasts 30 to 32 terawatt-hours of nuclear generation for 2026 and has hedged more than 95% of expected output for the year. The company is also developing a roughly 200-megawatt capacity uprate at Salem, representing about 112 MW for PSEG’s share, and has notified the Nuclear Regulatory Commission that it intends to seek 20-year operating-license extensions for Salem Units 1 and 2 and Hope Creek.

Long-term outlook and risks

PSEG’s long-term outlook calls for a 6% to 8% compound annual growth rate in non-GAAP operating earnings through 2030, supported by projected rate-base growth of 6% to 7.5%. Management said the five-year capital plan can be funded without issuing equity or selling assets.

Potential opportunities beyond that outlook include contracting nuclear output above current market prices, winning additional competitive transmission projects, investing to connect solar and battery-storage resources, and pursuing regulated or contracted power-supply opportunities. These possibilities are not included as assured outcomes.

As of Sept. 30, PSEG had approximately $3.9 billion of available liquidity, including $837 million of cash and cash equivalents. Variable-rate borrowings represented about 3% of total debt, while consolidated debt-to-capitalization stood at 60%.

PSEG identified regulatory approvals and cost recovery, resource adequacy and affordability concerns, construction and supply-chain costs, access to capital, nuclear operating and fuel-supply risks, cybersecurity, severe weather, wholesale power-market volatility and changes in energy or environmental regulation among the factors that could cause results to differ from its expectations.