Public Service Enterprise Group Incorporated

PSE&G's regulated distribution revenues serve approximately 2.4 million electric and 1.9 million gas customers under NJ BPU-approved tariffs with capital tracker mechanisms enabling cost recovery between formal rate cases, producing near-total earnings visibility on the regulated side. Nuclear generation revenues fluctuate with PJM electricity market prices, adding a commodity-price component to consolidated results.

Revenue is concentrated in two correlated energy businesses: PSE&G regulated distribution (electric and gas) and PSEG nuclear generation, both closely tied to New Jersey's energy ecosystem. Cross-segment diversification is limited because both lines respond to similar energy demand and utility regulatory dynamics.

PSE&G serves a 2,600-square-mile territory covering approximately 74% of New Jersey's population, and the nuclear assets (Salem and Hope Creek) are located in New Jersey and southern New Jersey or Pennsylvania. Essentially all consolidated revenues are tied to a single state's regulatory and economic environment.

As a regulated capital-intensive utility, PSEG earns rate base returns through continuous infrastructure investment rather than through operating leverage. Each incremental dollar of rate base growth requires proportional capital deployment, with the $24-28 billion five-year plan (2026-2030) funded primarily through internal cash flow and debt.

PSE&G's electric and gas distribution revenues are non-discretionary and recurring, billing approximately 2.4 million electric and 1.9 million gas customers under regulated tariffs. Nuclear revenues carry partial downside protection from the federal IRA nuclear production tax credit through 2032, but spot PJM prices retain meaningful influence on the nuclear segment's contribution.