PEG Filings — Public Service Enterprise Group Inc - FilingSpy
PEG
Public Service Enterprise Group Inc
An energy holding company whose New Jersey utility, PSE&G, delivers electricity and natural gas to millions of homes and businesses across the state, while its PSEG Power arm runs nuclear stations at the Salem and Hope Creek complex — one of the largest nuclear sites in the US, supplying about two-fifths of New Jersey's electricity. Its roots reach back to 1903, when more than 400 small gas, electric, and trolley companies were folded into the Public Service Corporation of New Jersey, a name chosen for its public-service mission.
PSEG Power swung to a mark-to-market loss, pulling Q2 net income down 43% to $334M despite steady utility growth.
A $321 million swing in mark-to-market results at PSEG Power erased the prior year's gain. fell 8.9% to $2.55 billion and dropped 43% to $0.67, as a $387 million decline in generation revenue more than offset higher capacity prices and continued growth at PSE&G. The regulated utility remains the earnings anchor, but the generation business reintroduced the volatility that had eased in recent quarters.
Key takeaways
Consolidated fell 43% to $334 million, driven by a $321 million after-tax swing in non-trading mark-to-market gains and losses at PSEG Power & Other — from a $136 million gain in Q2 2025 to a $185 million loss in Q2 2026.
PSEG Power & Other reported a net loss of $8 million, compared with $253 million in income a year ago, as generation fell $387 million primarily from the MTM swing, partially offset by higher capacity revenues from increased PJM prices.
Section summaries
Management's Discussion and Analysis
PSEG Q2 2026 net income fell to $334M from $585M, driven by non-trading MTM losses at PSEG Power, partially offset by PSE&G's regulated investment growth.
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PSEG consolidated decreased to $334M in Q2 2026 from $585M in Q2 2025, primarily due to a $321M swing in non-trading MTM gains/losses at PSEG Power & Other.
PSE&G rose 3% to $342 million, supported by higher delivery revenues from continued investments and transmission, as well as increased clause revenues, partially offset by higher operations and maintenance and .
contracted 4.5 points to 66.1%, reflecting the weight of mark-to-market losses on the generation business's cost structure, though it improved 5.3 points sequentially from Q1 2026.
rose 15% to $550 million for the quarter, and for the first six months of 2026 it increased $294 million , helped by lower net cash collateral postings at PSEG Power.
PSE&G's regulated reached approximately $36 billion, and the company reaffirmed its $22.5 billion-to-$25.5 billion capital plan for 2026–2030 targeting 6.0%–7.5% compound annual rate base growth.
What changed
The Q1 2026 watch item on MTM direction resolved negatively: the narrower Q1 loss did not hold, reversing to a $185 million after-tax MTM loss in Q2 2026 from a $136 million gain a year ago, a $321 million swing that drove the 43% decline.
The Q1 2026 watch item on the PSEG Long Island contract competitor challenge and nuclear power sale agreements remained unresolved, with no new long-term agreements announced and the legal challenge still pending.
The Q1 2026 watch item on the 50 basis-point transmission adder and PJM capacity auction regulatory response remained open, with no resolution reported in the quarter.
The trend of MTM-driven earnings volatility at PSEG Power, which had narrowed in 2025, widened again: MTM VaR at the 95% confidence level averaged $69 million in Q2 2026, up from $41 million for full-year 2025, though the Q2 range was narrower than the full-year range.
What to watch
Whether PSEG secures long-term power sale agreements for its nuclear facilities with large users such as data centers before the BGSS contract expires in 2027, which would reduce exposure to wholesale power prices and MTM volatility.
The outcome of the competitor's legal challenge to the PSEG Long Island contract extension, which could remove a source of fee-based earnings if the appeal succeeds.
The direction of mark-to-market gains or losses at PSEG Power in Q3 2026, to see whether the Q2 loss reverses or persists, particularly given the higher average VaR of $69 million.
The regulatory response to PJM capacity auction price spikes and the potential loss of the 50 basis-point transmission adder, both of which could affect future utility investment recovery.
PSE&G rose to $342M from $332M, driven by higher delivery revenues from investments and transmission, and increased clause revenues, partially offset by higher O&M and .
PSEG Power & Other reported a net loss of $8M compared to $253M income, as generation revenues fell $387M mainly from MTM losses versus prior-year gains, partially offset by higher capacity revenues.
PSE&G's regulated grew to approximately $36B by year-end 2025, with a 2026-2030 capital plan of $22.5B-$25.5B supporting a 6.0%-7.5% compound annual growth rate.
Liquidity remained strong with $3.21B in available credit facilities as of June 30, 2026, and operating cash flows increased $294M for the six-month period.
We are party to various lawsuits and environmental and regulatory matters, including in the ordinary course of business. For information regarding material legal proceedings, including updates to information reported in Item 3 of Part I of the Form 10-K, see Part I, Item 1. Note…
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We are party to various lawsuits and environmental and regulatory matters, including in the ordinary course of business. For information regarding material legal proceedings, including updates to information reported in Item 3 of Part I of the Form 10-K, see Part I, Item 1. Note 8. Commitments and Contingent Liabilities in this Quarterly Report on Form 10-Q.
The discussion of our business and operations in this Quarterly Report on Form 10-Q should be read together with the risk factors contained in Part I, Item 1A of our Form 10-K which describes various risks and uncertainties that could have a material adverse impact on our busine…
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The discussion of our business and operations in this Quarterly Report on Form 10-Q should be read together with the risk factors contained in Part I, Item 1A of our Form 10-K which describes various risks and uncertainties that could have a material adverse impact on our business, prospects, financial position, results of operations or cash flows and could cause results to differ materially from those expressed elsewhere in this report.