Q2 2026 Public Service Enterprise Group Inc Earnings Call Transcript
Key Points
- Public Service Enterprise Group Inc (PEG) reaffirmed its full-year 2026 non-GAAP operating earnings guidance of $4.28 to $4.40 per share and its 6% to 8% long-term earnings growth outlook through 2030.
- The company's Clean Energy Future Program generates over $1 billion in annual customer savings and has supported approximately 9,300 jobs statewide since 2020.
- PSEG Nuclear achieved a 92% capacity factor in Q2 2026, supplying 7.8 terawatt hours of carbon-free baseload generation.
- A favorable PJM transmission cost allocation change will provide an estimated $33 million benefit to Salem transmission customers in 2026 and an expected $65 million annual benefit going forward.
- The company maintains a solid balance sheet with $3.4 billion in liquidity, enabling it to fund its $24 billion to $28 billion five-year capital plan without issuing new equity or selling assets.
- PSEG successfully managed one of its most challenging storm restorations, reconnecting approximately 380,000 customers, with nearly all restored within 24 hours.
- PSEG anticipates filing a base rate case by year-end 2026 due to regulatory lag from its historical test year and a robust capital program, which could lead to more frequent rate cases.
- The potential elimination of the 50-basis-point RTO incentive could represent an annual headwind of $40 million in net income, or approximately $0.08 per share, effective January 2027.
- PJM's latest capacity auction priced at $325 per megawatt day, the upper end of the price collar, and fell 6.8 gigawatts short of the targeted reliability requirement, indicating ongoing resource adequacy challenges.
- The company faces uncertainty regarding the allocation of project risk for new nuclear development, which is a long-term solution (12-year projects) that may not address near-term load growth needs.
- PSEG Power's net income declined significantly in Q2 2026, reporting a net loss of $8 million compared to net income of $253 million in the prior year, partly due to the absence of the Zero Emission Certificate Program.
- The company noted increased distribution O&M expenses due to inflation and higher interest expenses from incremental debt at higher rates.
Ladies and gentlemen, thank you for standing by. My name is Rob, and I'm your event operator today. I would like to welcome everyone to today's conference, Public Service Enterprise Group's second-quarter 2026 earnings conference call and webcast. (Operator Instructions) As a reminder, this conference is being recorded today, August 4, 2026, and will be available for replay as an audio webcast on the PSEG's investor relations website at https://investor.pseg.com. I would now like to turn the conference over to Carlotta Chan. Please go ahead.
Good morning, and welcome to PSEG's second-quarter 2026 earnings presentation. On today's call are Ralph LaRossa, Chair, President and CEO; and Dan Cregg, Executive Vice President and CFO. The press release, attachments and slides for today's discussion are posted on our IR website at investor.pseg.com, and our 10-Q will be filed later today.
PSEG's earnings release and other matters discussed during today's call contain forward-looking
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