PSEG reports US$376M quarterly profit as utility earnings slip
The New Jersey utility and nuclear owner kept its 2026 earnings outlook and expects to fund a US$24B to US$28B capital plan without new equity.
Ines Halvorsen
For the quarter ended Sept. 30, net income fell to US$376 million at Public Service Enterprise Group NYSEPEG, according to results released on Monday. Non-GAAP operating earnings rose to US$574 million from US$565 million a year earlier.
The New Jersey utility and nuclear-power owner maintained its 2026 operating earnings forecast of US$4.28 to US$4.40 a share. It also reaffirmed a five-year capital investment plan of US$24 billion to US$28 billion that management expects to fund without issuing equity or selling assets.
Shares NYSEPEG were US$74.29 in New York as of 20:03 UTC on Oct. 30, before Monday's results.
Utility subsidiary Public Service Electric and Gas Co., known as PSE&G, earned US$506 million in the third quarter of 2026, down from US$515 million a year earlier. Higher depreciation and interest costs on investments not yet reflected in current rates, along with tax timing, outweighed gains from energy-efficiency and transmission investment.
PSEG Power & Other reported a third-quarter net loss of US$130 million, compared with US$107 million in net income a year earlier. Its non-GAAP operating earnings increased to US$68 million from US$50 million, according to the Nov. 2 release.
The power segment benefited from higher realized prices, increased nuclear generation and lower operating and maintenance costs because the prior-year quarter included a Hope Creek refuelling outage. Mark-to-market and nuclear decommissioning trust losses contributed to the reported loss but are excluded from operating earnings.
PSEG's nuclear operations supplied 8.2 terawatt-hours during the third quarter of 2026 at a capacity factor of 95.5 per cent. Salem Unit 1 entered its autumn refuelling outage after a 491-day run.
"Our financial results for the third quarter and year-to-date period align with our expectations for the full-year," PSEG chair, president and chief executive Ralph LaRossa said in the release.
Regulated Investment Faces A Gap Before Rate Recovery
The company's fixed-income disclosure, dated Aug. 4, sets out its regulated investment budget for 2026 to 2030. That budget ranges from US$22.5 billion to US$25.5 billion, separate from the larger total company capital plan reaffirmed on Monday.
PSEG reported about US$3.4 billion of available liquidity as of June 30, 2026, with consolidated debt equal to 59 per cent of capitalization. Variable-rate borrowings represented about 3 per cent of total debt at that date.
The regulated investment plan includes the Maryland Piedmont Reliability Project, which will be owned and managed outside PSE&G. The company identifies Federal Energy Regulatory Commission formula-rate recovery for that investment in its fixed-income disclosure.
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The financing approach is unchanged from PSEG's Aug. 4 earnings release, which also set out the US$24 billion to US$28 billion total plan. On Monday, management maintained its target of 6 to 8 per cent compound annual growth in non-GAAP operating earnings through 2030.
PSEG's next scheduled update is its Nov. 2 earnings call at 11 a.m. EST, when management will review quarterly results and earnings guidance with the financial community.
