PEG · 10-Q · 2026Q3 · Full report

Nuclear PTC and ZEC Transition

PUBLIC SERVICE ENTERPRISE GROUP INC · 2026-11-02 · Importance 44 · Surprise 24 · In source text

Sales of zero-emission certificates from PSEG Power’s Salem 1, Salem 2, and Hope Creek plants concluded in May 2025, and the company did not apply for the ZEC eligibility period beginning in June 2025 after the federal nuclear production tax credit began in January 2024. The PTC runs through 2032 and is expected to be up to $15/MWh, subject to gross-receipts-based adjustments and annual inflation adjustments. Recorded PTC amounts and their interaction with expected ZEC payments remain subject to U.S. Treasury and IRS guidance, including clarification of the gross-receipts phaseout definition; changes to amounts previously recorded could be material.

Key facts

• The federal nuclear PTC began in January 2024 and continues through 2032, with an expected rate of up to $15/MWh subject to gross-receipts adjustment and annual inflation adjustments.
• PSE&G's nine-month 2026 other operating revenues decreased $127 million, primarily because ZEC collections ended in 2025.
• Adjustments to PSEG's recorded PTC amounts could be material and depend in part on estimated market prices, generation, and future Treasury/IRS guidance on gross receipts.
• PSEG Power's Salem 1, Salem 2, and Hope Creek ZEC sales concluded in May 2025; PSEG Power did not apply for the ZEC eligibility period beginning June 2025 because of the federal nuclear PTC.
• As of September 30, 2026, PSEG expected its 2026 nuclear generation portfolio's realized value to be above the level at which it would receive PTCs.

Impact estimates