This article first appeared on GuruFocus .
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Net Income (Q3 2026):$0.76 per share, down from $1.24 per share in Q3 2025.
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Non-GAAP Operating Earnings (Q3 2026):$1.15 per share, up from $1.13 per share in Q3 2025.
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Net Income (9M 2026):$2.91 per share year-to-date.
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Non-GAAP Operating Earnings (9M 2026):$3.56 per share year-to-date.
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Full-Year 2026 Guidance:Reaffirmed non-GAAP operating earnings range of $4.28 to $4.40 per share.
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PSE&G Segment Earnings (Q3 2026):Net income and non-GAAP operating earnings of $506 million, down from $550 million in Q3 2025.
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PSEG Power and Other (Q3 2026):Net loss of $130 million vs. net income of $107 million in Q3 2025; non-GAAP operating earnings of $68 million vs. $50 million in Q3 2025.
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Transmission Margin:Up $0.02 per share on higher investment.
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Distribution Margin:Up $0.03 per share on higher distribution and energy efficiency investment and customer growth.
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Net Energy Margin:Up $0.04 per share on higher generation and capacity prices and gas operations.
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O&M (Power):Down $0.02 per share, benefiting from absence of prior-year Hope Creek refueling outage.
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Depreciation & Interest (PSE&G):Each up $0.01 per share on capital investments and higher-rate debt replacement.
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Taxes and Other (PSE&G):Net unfavorable impact of $0.04 per share, mostly tax timing.
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Customer Growth:Residential electric customers up ~1%; gas flat over trailing 12 months.
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Nuclear Generation:~8.2 TWh in Q3; 23.9 TWh for nine months.
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Nuclear Capacity Factor:95.5% in Q3; 94.3% for nine months.
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Capital Investment:~$1.1 billion in Q3; ~$4.2 billion full-year 2026 regulated plan; $22.5B$25.5B five-year plan through 2030.
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Liquidity:$3.9 billion available, including over $830 million cash on hand.
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Financing:PSE&G issued $1B secured MTNs (5.4% 10-year, 6.05% 30-year); PSEG Power issued $400M five-year notes at 5.55%; variable-rate debt ~3% of total debt.
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Capacity Auction:~3,600 MW cleared at $325/MW-day for 20282029 energy year.
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Hedging:~70 TWh of expected generation sold forward as of Sept 30; more than 95% hedged for 2026.
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Long-Term Growth Outlook:Reaffirmed 6%8% earnings growth through 2030; 6%7.5% rate-base CAGR.
Release Date: November 02, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Public Service Enterprise Group Inc ( NYSE:PEG ) reaffirmed its full-year 2026 non-GAAP operating earnings guidance of $4.28 to $4.40 per share and its five-year growth outlook of 6% to 8% through 2030.
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PSE&G's investments in energy efficiency and transmission drove utility margin growth, and the company is on track with its $4.2 billion regulated capital investment plan for 2026.
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The nuclear fleet operated at a strong 95.5% capacity factor in Q3 2026, and Salem Unit 1 completed a 491-day breaker-to-breaker run, matching Salem Unit 2's earlier achievement.
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PSE&G demonstrated best-in-class storm response during a Nor'easter, restoring nearly all 70,000 affected customers within 24 hours, and PSEG Long Island is on track for its most reliable year on record.
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Constructive regulatory actions included BPU approval of a 5% residential gas bill decrease, recovery of GSMP-2, EV, and IAP investments, and a FERC ruling that prospectively reduced wholesale transmission rates for customers.
Negative Points
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PSE&G's third quarter net income and non-GAAP operating earnings declined to $506 million from $550 million in 2025, due to higher depreciation, interest costs, and unfavorable tax timing.
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PSEG Power and Other reported a net loss of $130 million in Q3 2026 compared to net income of $107 million in 2025, driven by lower net income despite higher non-GAAP operating earnings.
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The basis differential between the PECO zone and PJM Western hub widened to about a 30% discount, which could pressure realized energy prices, though hedges limit exposure.
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FERC rejected certain aspects of PJM's reliability backstop procurement and interim resource adequacy service filings, delaying the RPP auction to March 2027 or later and creating regulatory uncertainty.
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The upcoming base rate filing in New Jersey is expected to address regulatory lag, but details remain uncertain and the outcome could impact future earnings and customer rates.
Q & A Highlights
Q: With the widening basis differential between the PECO zone and PJM Western hub, how is PSEG managing its hedge position, and what proportion of forward-sold power could be impacted? A: CFO Daniel Cregg explained that PSEG hedges at the PECO zone, where prices have risen but not as sharply as the Western hub. The company uses a mix of direct hedges, FTRs, swaps, and options to manage exposure, and its balanced hedge position for 2026 and 2027 limits the impact of the basis move. CEO Ralph LaRossa emphasized that PSEG has consistently communicated its PECO-based hedging approach, and the widening differential mainly affects those assuming Western hub pricing.
Q: Can you provide details on the upcoming PSE&G base rate filing and whether it represents a shift away from a full rate case? A: CEO Ralph LaRossa said the filing is designed to stay aligned with the governor's affordability agenda while addressing regulatory lag on capital investments made since the last distribution rate case. He declined to provide specifics but noted the company has worked constructively with the Sherrill administration and will communicate details once the filing is made.
Q: How do you view the potential for nuclear contracting deals in New Jersey, particularly given the recent PJM region power purchase agreements? A: CEO Ralph LaRossa noted that recent deals, including the Constellation agreement referencing Salem uprates, have been applauded by the governor as a way to bring tech companies to the table to share grid costs. He said conversations with large load entities continue and advance, though data center development decisions are largely left to local municipalities. CFO Daniel Cregg added that strong interest remains but nothing is ready to announce.
Q: Will PSEG's realized nuclear generation value remain above the nuclear PTC level in 2027 despite the widening basis? A: CFO Daniel Cregg confirmed that the current portfolio position for 2027 will result in realized value above the nuclear production tax credit level, consistent with 2026. He noted that supply-demand fundamentals, including increasing demand announcements outpacing new generation additions, should continue to support upward price pressure over time.
Q: Can you reaffirm the 6% to 8% long-term earnings growth outlook and discuss whether PSEG could fall outside that range in any given year? A: CEO Ralph LaRossa strongly reaffirmed the 6% to 8% growth rate through 2030, emphasizing the company's confidence and pride in standing by the outlook. He indicated PSEG expects to grow within that range, supported by its five-year regulated capital investment plan.
Q: What near-term items could drive upside to the next capital plan update, such as competitive transmission wins, nuclear contracting, or solar and storage deals? A: CEO Ralph LaRossa pointed to opportunities in solar and battery grid-readiness investments, virtual power plants, and additional PJM transmission buildout driven by basis differentials across multiple hubs. He noted PSEG's successful track record in competitive transmission proceedings, including the Maryland project, and said the company continues to monitor PJM's RTEP process for more opportunities.
Q: How is PSEG thinking about the PJM reliability backstop procurement process versus pursuing bilateral deals? A: CFO Daniel Cregg said PSEG is pursuing both avenues. While the back-and-forth between PJM and FERC has been bumpy and created timing frustration, the process has broadened the opportunity set for getting generation built to serve projected load growth and has expanded potential for bilateral deals.
Q: With recent interest rate movements and capital plan needs, how should investors think about financing impacts on 2027 guidance? A: CEO Ralph LaRossa said PSEG is through most of its 2026 financing needs and is in fine shape moving into 2027, when financing activity will be lower than in 2026. CFO Daniel Cregg added that the company looks for opportunities to hedge into next year and noted the regulatory construct helps offset some interest rate pressure given the magnitude of the transmission business.
Q: What is PSEG's view on regulated utility-owned solar and storage investments in New Jersey? A: CEO Ralph LaRossa said PSEG would welcome such opportunities and has prior experience, including the Solar for All landfill program, solar on poles, and being the first utility to file on battery storage over five years ago. However, he noted New Jersey policy is not yet certain on whether these will move in a regulated direction or remain competitive, and PSEG will align with state policy rather than front-run it.
Q: Where does PSEG's large load inquiry pipeline stand, and has there been any shift in the types of customers? A: CEO Ralph LaRossa said the pipeline remains at roughly the prior level of about 11.8 gigawatts as of December 2025. He noted the inquiries continue to be predominantly edge computing opportunities rather than large hyperscale data centers, consistent with the financial industries supported in New Jersey.
Q: What is the status of new nuclear development conversations, and what data points should investors watch for in New Jersey? A: CEO Ralph LaRossa said PSEG's Salem County site has real advantages due to its location within PJM, port access, and its early site permit, and the company is actively advocating for new nuclear aligned with the governor's long-term vision. He identified the BPU's auction for new nuclear, called for by legislation passed last year, as the first real action point in New Jersey. CFO Daniel Cregg added that the multi-party process remains active but complex, making announcements difficult to finalize.
Q: Would potential large load contracts for existing nuclear or uprates change PSEG's hedging strategy? A: CFO Daniel Cregg said any contract in place would cover a portion of the output PSEG is looking to sell more broadly, so the company would definitively factor that into its overall position. He also clarified that while PJM West is an available product, PSEG uses other instruments to move positions closer to its actual unit pricing at PECO.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
