PEG · 10-Q · 2026Q3 · Full report
Grid Modernization and Reliability
PUBLIC SERVICE ENTERPRISE GROUP INC · 2026-11-02 · Importance 52 · Surprise 42 · In source text
PSE&G’s T&D investment focus is aimed at meeting growing demand and improving system reliability and resilience in New Jersey. The company’s approved GSMP III includes $1.05 billion to replace 525 miles of high-pressure cast-iron and unprotected-steel gas mains, plus authorization for $360 million to replace another 75 miles. Work began in 2026 and is expected to continue through December 2028, with trailing service replacements and paving into 2029. Separately, PJM awarded PSEG an approximately $424 million transmission project addressing increasing load and reliability issues in Maryland and northern Virginia, although PSEG does not believe the directed 2027 in-service date is reasonably achievable under the current procedural timeline.
Key facts
- In November 2025, the BPU authorized $1.05 billion under GSMP III to replace 525 miles of high-pressure cast iron gas mains and unprotected steel mains, with cost recovery through three periodic rate adjustments as portions enter service.
- The BPU also authorized $360 million to replace an additional 75 miles of gas main under GSMP III, with cost recovery to be requested in a future base rate case.
- PSE&G made $1,947 million of capital expenditures during the nine months ended September 30, 2026, primarily for T&D system reliability.
- GSMP III investment began in 2026 and is scheduled to continue through December 2028, with trailing service replacement and paving costs into 2029.
- PSE&G had $118 million of cost of removal, net of salvage, associated with capital replacements during the nine months ended September 30, 2026.
- PSEG's New Jersey natural gas distribution system served approximately 1.9 million customers.
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| cash | negative | realized | -3.2% | PSE&G made $1,947 million of capital expenditures during the nine months ended September 30, 2026, primarily for T&D system reliability. |
| assets | positive | realized | +3.2% | PSE&G made $1,947 million of capital expenditures during the nine months ended September 30, 2026, primarily for T&D system reliability. |
| cash | negative | probable | -0.9% | In November 2025, the BPU authorized $1.05 billion under GSMP III to replace 525 miles of high-pressure cast iron gas mains and… |
| assets | positive | probable | +0.9% | In November 2025, the BPU authorized $1.05 billion under GSMP III to replace 525 miles of high-pressure cast iron gas mains and… |
| cash | negative | probable | -0.3% | The BPU also authorized $360 million to replace an additional 75 miles of gas main under GSMP III, with cost recovery to be requested in a… |
| assets | positive | probable | +0.3% | The BPU also authorized $360 million to replace an additional 75 miles of gas main under GSMP III, with cost recovery to be requested in a… |
| revenue | positive | probable | — | In November 2025, the BPU authorized $1.05 billion under GSMP III to replace 525 miles of high-pressure cast iron gas mains and… |
| revenue | positive | contingent | — | The BPU also authorized $360 million to replace an additional 75 miles of gas main under GSMP III, with cost recovery to be requested in a… |