Public Service Enterprise Group, Inc. Q2 FY2025 earnings call

• PSE&G is on track to execute its $3.8 billion regulated investment program. Benefited from regulatory recovery of over $3 billion from the 2024 electric and gas distribution base rate case.
• Nuclear units had high capacity factor; Salem upgrade project to add ~200 MW of carbon-free power.
• Addressed customer affordability with initiatives like deferred billing, showoff protections, and energy assistance payments.
• Large load inquiries for new service connections grew to over 9,400 MW, up 47% from March 31.

PSE&G reported second quarter 2025 net income and non-GAAP operating earnings of $332 million compared to $302 million in 2024. For the year-to-date ended June 30, PSE&G's net income and non-GAAP operating earnings were $878 million in 2025 vs $790 million in 2024. PSEG Power & Other had second quarter 2025 net income of $253 million compared to $132 million in 2024, and non-GAAP operating earnings of $52 million vs $11 million in 2024. The nuclear fleet generated ~7.5 terawatt hours of carbon-free baseload power with an 88.8% capacity factor in Q2 2025.

• Reaffirms full year 2025 non-GAAP operating earnings guidance of $3.94 to $4.06 per share, up 9% at midpoint from 2024.
• Maintains 5-year capital spending program of $21 billion to $24 billion, supporting 6% to 7.5% rate base CAGR through 2029 and 5% to 7% non-GAAP operating earnings CAGR at nuclear PTC threshold.
• Confident in being within the full year guidance range despite the Hope Creek outage in Q4 2025.

• Resource adequacy challenges in New Jersey and PJM region with growing demand and slow new supply response.
• PJM capacity market dynamics and potential impact on customer bills.
• Uncertainty in legislative and regulatory actions regarding generation build and resource planning in New Jersey.

Q: David Arcaro asks about New Jersey resource adequacy and generation build conversations.

A: Ralph says they're advocating for decisions on forecasts, reliability, affordability, and environmental policies, and will help drive solutions.

Q: David Arcaro follows up on data center pipeline and nuclear plant opportunities.

A: Dan mentions ongoing discussions and interest in data centers, with CoreWeave's investment in New Jersey as an example.

Q: Nicholas Campanella asks about New Jersey generation add and multiyear contracts.

A: Ralph says they want to do a deal with the state but won't rush, and Dan talks about monitoring capacity and energy markets.

Q: Michael Sullivan asks about New Jersey supply options and JV consideration.

A: Ralph says not interested in merchant generation, and Dan mentions PJM process discussions.

Q: Michael Sullivan asks about OB3 benefits and tax credits.

A: Dan explains bonus depreciation helps cash flow but is marginal, and PTC retention is key.

Q: Randy asks about New Jersey supply and JV.

A: Ralph says not interested in merchant generation, and Dan mentions PJM governors meeting next month.

Q: Carly Davenport asks about large load inquiries conversion rate and 2025 earnings growth.

A: Ralph says ~10%-20% conversion rate holds, and Dan notes halfway point earnings above expectations but Hope Creek outage will be a drag.

Q: Ryan Levine asks about customer bill deferral and large load projects.

A: Ralph says no current plan, and Dan explains PJM auction impact on bills.

Q: Travis Miller asks about regulated generation FERC approval and resource adequacy debate.

A: Ralph says no FERC approval needed, and Dan talks about past reliability, affordability, and environmental concerns.

Q: Paul Fremont asks about CoreWeave relationship and cogeneration.

A: Ralph says CoreWeave relates to the utility, and details on cogeneration are with site management.

Q: Julien Dumoulin-Smith asks about energy storage participation and PJM governance.

A: Ralph says energy storage is part of all-of-the-above, and PJM governance is a process needing member votes.

Q: Paul Patterson asks about legislative action and battery economics.

A: Ralph says momentum for solutions exists, and battery economics are merchant-based with pending BPU action.