PEG · 10-Q · 2026Q2 · Full report

Margin Drivers

PUBLIC SERVICE ENTERPRISE GROUP INC · 2026-08-04 · Importance 57 · Surprise 64

PSEG Power’s six-month generation revenue declined $241 million primarily because non-trading MTM results decreased $300 million in 2026 versus 2025, including a $276 million adverse change in forward prices and a $24 million impact from settled positions. Higher capacity revenue contributed $115 million and higher average realized prices contributed $24 million, partly offsetting the MTM and ZEC-related declines. PSE&G’s six-month operating costs increased $280 million for energy and $102 million for O&M, but the energy-cost increase was fully offset by commodity and other operating revenues and the O&M increase primarily reflected clause and renewable expenditures. PSEG Power’s NDT investment gains increased $24 million for the six months, reflecting $170 million of higher realized gains partly offset by $78 million of unrealized losses versus $69 million of unrealized gains in 2025.

Key facts

• PSE&G Depreciation and Amortization increased $11 million for the three months ended June 30, 2026 due primarily to higher plant placed in service and increased amortization of Regulatory Assets, and increased $26 million for the six months ended June 30, 2026 due primarily to higher plant placed in service and increased amortization of software and Regulatory Assets. source