Public Service Enterprise Group posted a 33% year-over-year jump in second-quarter net income, reaching $585 million ($1.17 per share), driven by stronger regulated returns and improved nuclear generation. The New Jersey-based utility also reaffirmed its full-year 2025 non-GAAP operating earnings guidance of $3.94 to $4.06 per share—up 9% at the midpoint over 2024.
Non-GAAP operating earnings for the quarter came in at $384 million, or $0.77 per share, versus $313 million ($0.63 per share) a year earlier.
The results reflect continued earnings momentum at both the utility and generation segments. PSE&G’s Q2 operating earnings rose to $332 million from $302 million a year ago, benefiting from new electric and gas base rates implemented after its 2024 distribution rate case. PSEG Power & Other saw a nearly fivefold increase in operating earnings, to $52 million, on the back of higher nuclear output.
“We are executing on a $3.8 billion regulated investment program this year while navigating extreme weather, growing electricity demand, and new nuclear policy support,” said Ralph LaRossa, PSEG’s Chair, President and CEO.
Nuclear and Grid Optimization in Focus
Key to PSEG’s long-term strategy is its nuclear fleet. Hope Creek—PSEG’s 100%-owned nuclear unit—is scheduled for a refueling outage this fall. That work will transition the plant from an 18-month to 24-month fuel cycle, aiming to optimize operations through 2027 and enhance the delivery of reliable, carbon-free baseload power.
The company’s nuclear generation reached 7.5 terawatt-hours in Q2, up 0.5 TWh from a year earlier. PSEG also secured 3,500 MW of nuclear capacity in PJM’s 2026/2027 base residual auction at $329/MW-day, up from $270/MW-day in the prior auction—a boost to future revenue certainty.
On the policy front, July’s federal tax legislation preserved the downside protection in the nuclear production tax credit and extended bonus depreciation benefits—moves that strengthen PSEG’s economics for potential nuclear capacity expansions, including at its Salem unit.
Rising Load, Resilience Amid Extreme Heat
New Jersey’s electric demand hit a summer peak of 10,229 MW on June 24—the highest since 2013—following three consecutive days of 100°F weather. PSE&G’s infrastructure investments and storm response capabilities were credited with helping maintain system reliability and rapid service restoration across New Jersey and Long Island.
To address rising electricity bills, especially after the impact of PJM’s last capacity auction began to flow through, PSE&G partnered with the New Jersey Board of Public Utilities to launch a Summer Relief Initiative. It defers customer billing during peak usage months without interest and extends shut-off protections for income-qualified customers.
Meanwhile, interest from large-load customers, particularly data centers, surged to over 9,400 MW in Q2—up 47% from the end of Q1—suggesting significant potential growth in electric demand. The utility is averaging a four-month response time to engineering assessments for these new connections.
Financials and Outlook
For the first six months of 2025, PSEG reported $1.17 billion in net income ($2.35 per share), up from $966 million ($1.93) in the first half of 2024. Non-GAAP operating earnings for the half were $1.10 billion ($2.20 per share), up from $970 million ($1.94) in the prior year.
Cash flow from operations totaled $1.53 billion in the first half, while total capital expenditures approached $1.4 billion. The company’s total debt rose slightly to $23.3 billion, with a debt-to-capital ratio of 58.3%.
PSEG continues to target 5% to 7% compound annual growth in non-GAAP operating earnings through 2029, fueled by regulated investments and potential long-term contracts for its nuclear output.