PEG · 10-Q · 2026Q3 · Full report

Interest Rate Environment

PUBLIC SERVICE ENTERPRISE GROUP INC · 2026-11-02 · Importance 15 · Surprise 6

PSEG’s long-term financing plan is intended to replace maturities and fund its capital program, making prevailing interest rates a key determinant of interest expense on variable-rate debt and rates on future long-term financing. The company may use interest-rate hedges to increase expense predictability and fix part of its exposure for anticipated financing at PSEG and PSEG Power. PSE&G’s exposure is moderated by annual transmission-rate filings and periodic distribution recoveries.

Key facts

• PSEG's financing plan is designed to replace maturities and fund its capital program; prevailing interest rates will affect variable-rate debt interest expense and long-term financing rates.
• PSE&G's nine-month 2026 interest expense increased $52 million, primarily due to incremental debt and refinancing maturing debt at higher rates.
• PSE&G's three-month 2026 interest expense increased $21 million, primarily due to incremental debt and refinancing maturing debt at higher rates.
• PSEG may use interest-rate hedges to limit fluctuating-rate exposure and fix part of its exposure for anticipated long-term financing at PSEG and PSEG Power.