PEG · 10-Q · 2026Q3 · Full report

Rate Case and Regulatory Uncertainty

PUBLIC SERVICE ENTERPRISE GROUP INC · 2026-11-02 · Importance 40 · Surprise 42 · In source text

New Jersey legislation passed in June 2026 will require transmission owners operating in the state to belong to a FERC-approved regional transmission organization beginning January 1, 2027. PSE&G could consequently lose its 50-basis-point PJM participation adder, which would reduce annual net income and cash inflows by approximately $40 million if that occurs. PSE&G anticipates filing by year-end 2026 to address regulatory lag on capital investments since its last distribution rate case, while the company says the outcome of future proceedings is uncertain.

Key facts

• Effective January 1, 2027, New Jersey legislation requires transmission owners operating facilities in the state to belong to a FERC-approved RTO; possible loss of PSE&G's 50-basis-point ROE adder could reduce annual net income and cash inflows by approximately $40 million.
• PSE&G anticipates filing by year-end 2026 to address regulatory lag for capital investments made since its last distribution rate case.
• PSEG cannot predict how New Jersey's November 2025 updated Energy Master Plan may influence energy policy under the administration that took office in January 2026, or the resulting business impact.

Impact estimates