PEG · 10-Q · 2026Q2 · Full report

Nuclear PTC and ZEC Transition

PUBLIC SERVICE ENTERPRISE GROUP INC · 2026-08-04 · Importance 46 · Surprise 42 · In source text

PSEG Power’s Salem 1, Salem 2 and Hope Creek zero-emission certificate sales ended in May 2025, and the company did not apply for the subsequent three-year ZEC eligibility period because of the federal nuclear production tax credit. The PTC began in January 2024 and continues through 2032, with an expected rate of up to $15 per megawatt-hour subject to gross-receipts-based adjustments and annual inflation adjustments. PSEG cautions that future U.S. Treasury and IRS guidance, including clarification of gross receipts, could materially change previously recorded PTC and ZEC amounts.

Key facts

• As of June 30, 2026, we expect that our current portfolio position for 2026 will result in the realized value of our nuclear generation output being above the level at which we would receive PTCs. source
• The expected PTC rate is up to $15/MWh subject to adjustment based upon a facility’s gross receipts, with rate and gross receipts threshold subject to annual inflation adjustments. source
• In May 2025, PSEG Power’s Salem 1, Salem 2 and Hope Creek ZEC sales concluded, with ZECs purchased by electric distribution companies in New Jersey pursuant to a BPU process. source
• Our nuclear facilities retain the downside price protection of a production tax credit (PTC) from 2024 through 2032. source
• ZEC revenue recorded has been reduced by the estimated PTCs generated from these nuclear plants and the PTC amounts recorded to date are subject to change based on adjustments and U.S. Treasury/IRS guidance. source

Impact estimates