Public Service Enterprise Group Inc.

Public Service Enterprise Group Inc. is an American electric and gas utility holding company that, through its primary subsidiary Public Service Electric and Gas Company (PSE&G), delivers electricity and natural gas to approximately 2.4 million electric and 1.9 million gas customers in New Jersey, while also owning and operating a fleet of three nuclear generating stations in southern New Jersey with a combined capacity of approximately 3,850 megawatts. The company generated $12.17 billion in revenue in fiscal 2025.

This is a story about a high-quality regulated utility franchise compounding steadily through infrastructure investment, paired with a nuclear generation fleet whose economic value has been transformed by the tightening of PJM power markets. PSE&G is one of the best-run utilities in the country — it has won the ReliabilityOne award for Outstanding Reliability Performance in the Mid-Atlantic region for 24 consecutive years and ranked first in J.D. Power customer satisfaction among large East Region electric utilities in 2025. That operating excellence, combined with New Jersey's dense suburban service territory and an aging infrastructure that demands replacement, provides a long runway for capital deployment that is unusually visible among utility peers.

The nuclear fleet adds a dimension most regulated utilities do not have: direct exposure to tightening regional power prices. The fleet's economics are anchored by the federal nuclear production tax credit (PTC), which provides a floor, but the real story is what happens above it. PJM capacity prices have risen sharply as data center load growth collides with retirements of dispatchable generation, and Public Service Enterprise Group's nuclear units sit in the PECO zone — the most favorably priced location in PJM for generators. The combination of a best-in-class regulated utility growing rate base at 6% to 7.5% and a merchant nuclear fleet generating cash above a federally supported floor creates a differentiated earnings profile among large-cap utilities. The file turns on a single question: whether the constructive regulatory environment in New Jersey that enables that rate base growth can coexist with the affordability pressures that high power prices create for the same customers.