PSEG projects a regulated capital investment program of $21 billion to $24 billion for 2025-2029, aiming for a 6% to 7.5% compound annual growth rate in its regulated rate base. This significant allocation, part of a $22.5 billion to $26 billion total capital investment program, underscores a strategy focused on stable, predictable returns from regulated assets.

The BPU approved a $2.9 billion authorization for PSE&G's CEF-EE II program for projects committed between January 2025 and June 2027, alongside a $900 million extension of the GSMP II program through December 2025. These initiatives demonstrate a commitment to modernizing infrastructure and supporting clean energy goals.

PSEG Power revised the estimated useful lives of its Salem 1, Salem 2, and Hope Creek nuclear plants, anticipating 20-year license extensions, which will ensure continued carbon-free generation. Additionally, PSEG was awarded a $424 million PJM transmission project to be in service by 2027, expanding its regulated asset base.

PSEG Power's nuclear units achieved an impressive capacity factor of 94.3% during the first six months of 2025, generating approximately 15.9 terawatt hours. This indicates efficient management and reliable operation of its critical carbon-free generation assets.

Operation and Maintenance expenses for PSEG Power & Other decreased by $8 million (2%) for the three months ended June 30, 2025, primarily due to decreased planned refueling outage costs. This highlights effective cost control measures by management in its competitive generation segment.

PSE&G settled its distribution base rate case in October 2024, securing new rates effective October 15, 2024, and obtained BPU approval for customer relief measures including a $30 credit and extended shut-off protections due to high electricity costs. This demonstrates management's ability to navigate regulatory environments and address customer needs.

PSEG has accrued $66 million for the Passaic River Superfund site and estimates $186 million to $210 million for MGP remediation, with potential for material additional costs. The company also faces ongoing investigations related to coal combustion residuals (CCR Rule) and other environmental matters, indicating significant financial and operational exposure.

PSEG Power is exposed to commodity price risk from electricity and natural gas fluctuations, with PJM capacity market prices for 2025/2026 increasing approximately 10 times over 2023 levels. This volatility, coupled with PJM's challenge to ensure resource adequacy, poses a material risk to earnings.

PSEG Power's agreements include provisions requiring additional collateral if its credit rating is downgraded, with an estimated $671 million in additional collateral required for a two-level downgrade from its current investment grade rating. This represents a material liquidity risk in adverse credit scenarios.

PSE&G, as a predominantly regulated electric and gas utility in New Jersey, benefits from stable revenue streams through BPU and FERC regulated tariffs. This regulated business model provides a significant competitive advantage with predictable returns, as evidenced by the $17.8 billion rate base and 9.6% return on equity approved in October 2024.

PSEG Power's merchant nuclear generation assets provide over 85% of New Jersey's carbon-free energy, now supported by the federal Production Tax Credit (PTC) from 2024 through 2032, following the conclusion of the ZEC program. This ensures the economic viability of its low-carbon generation in competitive markets.

The final price for the BGS-CIEP auction year commencing June 1, 2025, increased significantly to $696.05 per MW-day, up from $378.21 per MW-day in the prior year. This reflects higher PJM capacity market prices, signaling tight resource adequacy and potentially increased costs for energy procurement in the region.

PSEG Power & Other's Operation and Maintenance expenses decreased by $8 million (2%) for the three months ended June 30, 2025, primarily due to decreased planned refueling outage costs. This indicates improved efficiency in managing critical maintenance activities for its nuclear fleet.

Through the Gas System Modernization Program II (GSMP II), PSEG successfully reduced reported methane emissions by over 30% system-wide from 2018 through 2024. This demonstrates a strong commitment to environmental operational efficiency and aligns with sustainability goals.

Amortization of Energy Efficiency programs regulatory expenditures increased to $41 million for the three months ended June 30, 2025, from $30 million in the prior year. While an expense, this reflects ongoing investment in programs designed to help customers use energy more efficiently, contributing to long-term system efficiency and demand reduction.

The BPU approved $2.9 billion for PSE&G's CEF-EE II program and various regulations in July 2025 to streamline interconnection for grid supply solar and energy storage facilities. These investments highlight a strategic focus on integrating new technologies and modernizing the electric grid to meet clean energy goals.

PSEG is investing in smart meters and supporting infrastructure to allow for the integration of other clean energy technologies and to more efficiently respond to weather and other outage events. This digital transformation effort is crucial for improving grid reliability and meeting evolving customer expectations.

The company acknowledges the development, adoption, and use of Artificial Intelligence by itself and third-party vendors as a forward-looking risk factor. This indicates an ongoing focus on leveraging advanced technologies, although the specific R&D investments are not quantified in this filing.

PSEG plans a $21 billion to $24 billion regulated capital investment program for 2025-2029, representing the majority of its total $22.5 billion to $26 billion capital investment. This strategy aims to improve business sustainability and predictability, with investments in T&D infrastructure and clean energy programs.

Long-term debt increased by $2,675 million, from $18,964 million as of December 31, 2024, to $21,639 million as of June 30, 2025. This incremental debt, including new issuances of $1.0 billion for PSEG, $900 million for PSE&G, and $1.25 billion for PSEG Power, is primarily to support the extensive capital expenditure program.

PSEG's Board of Directors approved a $0.63 per share common stock dividend for the third quarter of 2025, maintaining an indicative annual dividend rate of $2.52 per share. This demonstrates a commitment to returning value to shareholders while simultaneously funding substantial capital projects.

PSEG has set a net zero greenhouse gas (GHG) emissions goal by 2030, covering direct (Scope 1) and indirect (Scope 2) emissions across its business operations. This commitment aligns with New Jersey's clean energy and climate goals, demonstrating a strong sustainability focus.

PSE&G's CEF-EE II program, with a $2.9 billion authorization, aims to help customers use energy more efficiently and reduce GHG emissions. Additionally, the GSMP II program has already reduced reported methane emissions by over 30% system-wide from 2018 through 2024, showcasing concrete environmental progress.

PSEG's nuclear units provide over 85% of New Jersey's carbon-free energy, and their economic viability is now supported by the federal Production Tax Credit (PTC) from 2024 through 2032. This strategy ensures a consistent supply of clean energy, contributing significantly to environmental goals.

Increasing demand for power and a lack of sufficient new generation resources in PJM and New Jersey have led to significantly higher electricity costs for customers, with PJM capacity market prices for 2025/2026 increasing approximately 10 times over 2023 levels. This creates regulatory uncertainty and pressure on customer bills.

New Jersey's executive orders establish aggressive targets for clean-sourced energy, building decarbonization, and EV adoption, driving substantial BPU-approved investments in energy efficiency programs (e.g., $2.9 billion for CEF-EE II) and grid modernization. This provides a supportive framework for PSEG's strategic initiatives.

The Inflation Reduction Act (IRA) established a new Production Tax Credit (PTC) for existing qualified nuclear generation facilities, effective from 2024 through 2032. This federal support is crucial for the economic viability of PSEG Power's nuclear fleet, especially after the conclusion of the state ZEC program, mitigating market risks for its carbon-free output.