With a combined revenue of $21 trillion and $2.1 trillion in profits, the 2026 Fortune 500 is the definitive list of America's largest companies.

Fortune 500

Almost $20 trillion in revenue—and a record-breaking $1.87 trillion in profits. Introducing the 2025 Fortune 500, the definitive list of the biggest companies in America.

Industries included in the sector are mining, oil and gas exploration and services, pipelines, refining, and utilities.

Fortune Sector Leaders: Energy

The Fortune 500, in its 70th year in 2024, ranks the biggest U.S. companies by revenue.

The Fortune 500, in its 69th year in 2023, ranks the biggest U.S. companies by revenue.

This year’s Fortune 500 marks the 68th running of the list.

This year’s Fortune 500 marks the 67th running of the list.

F500-2021-318-PSEG

The diversified energy company provides electricity and gas to more than 5 million customers in New Jersey and New York.

This year's Fortune 500 marks the 66th running of the list.

F500 2020 317 Public Service Enterprise Group

The New Jersey-based energy company provides electricity and gas to portions of New Jersey and New York and is one of the 10 largest electric companies in the U.S.

This year's Fortune 500 marks the 65th running of the list.

This year's Fortune 500 marks the 64th running of the list.

Here are the World's Most Admired Companies for 2017 as ranked in their industries. See who made the list.

World's Most Admired Companies

This year's Fortune 500 marks the 63rd running of the list.

This year's Fortune 500 marks the 62nd running of the list.

This year's Fortune 500 marks the 61st running of the list. Wal-Mart claims the top spot again. See who made the list.

Wal-Mart stayed on top as its sales crept closer to half-a-trillion dollars. Apple moved into the top five. And UnitedHealth Group continued its steady climb. 

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The Public Service Enterprise Group has been a cornerstone in providing reliable electric and natural gas services for more than a century. Its principal subsidiaries include Public Service Electric and Gas Company (PSE&amp;G), New Jersey's largest provider of electric and gas services; PSEG Power, which manages energy-supply operations; and PSEG Long Island, responsible for operating the electric transmission and distribution system for the Long Island Power Authority. Serving millions of customers across New Jersey and Long Island, PSEG is committed to delivering safe, affordable, and sustainable energy solutions.

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Public Service Enterprise Group (PEG): Company Profile, Stock Price, News, Rankings

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Public Service Enterprise Group

public service enterprise group

Hey, gentlemen. Thank you for standing by. My name is Rob Ottman, and I'm here to talk to you today. I would like to welcome everyone to a conference, Public Service Enterprise Group's third quarter 2025 earnings conference and public webcast. At this time, all participants are in a listen-only mode. Later, we'll discuss questions and answers as members of the financial community. At that time, if you have a question, please press star one on your telephone keypad. If you have a question, please press star one. If anyone wishes to call or request assistance during the conference, please press star zero on your telephone keypad. As a reminder, the conference is being recorded today, November 3rd, 2025, and will be available for replay on the audio webcast on PSE&G's investor relations website at investor.pseg.com. I would now like to turn the conference over to Carlotta Chan. Please go ahead.

Good morning and welcome to PSEG's third quarter 2025 earnings presentation. On today's call, we'll talk about Ralph LaRossa, their President and CEO, and Daniel Cregg, Executive Vice President and CFO. The press release attachments provided for today's discussion are posted on our IR website at investor.pseg.com, and our 10-Qs will be filed later that day. PSEG's earnings release and other materials discussed during today's call contain forward-looking statements and information that address various risks and uncertainties. We will also discuss non-GAAP operating earnings, which differs from net income as reported in reports with generally accepted accounting principles of GAAP in the United States. We include a reconciliation of our non-GAAP information and a disclaimer regarding forward-looking statements on our IR website and in today's material. Following our prepared remarks, we will conduct a 30-minute question and answer session. I will now turn the call over to Ralph LaRossa.

Thank you, Carlotta, and thank you all for joining us to review the results we announced this morning and to discuss our outlook for the business over the remainder of the year. PSE&G reported a solid third quarter and year-to-date operating and financial results, reflecting the expected positive impact of new rates from the October 2024 distribution rate case settlement that benefited the full third quarter. Our results through the first nine months enable us to narrow our 2025 non-GAAP operating earnings guidance to the upper half of the range at $4-$4.06 per share from prior guidance of $3.94-$4.06 per share. At PSE&G, we invested approximately $1 billion in the quarter and $2.7 billion over the first nine months of 2025, all part of our planned full-year $3.8 billion regulated capital spending program.

This program is focused on replacing and modernizing New Jersey's energy infrastructure, meeting load growth, and expanding energy efficiency programs that lower energy demand and customer bills. During the quarter, PSEG Nuclear supplied the grid with 7.9 terawatt-hours of reliable, carbon-free baseload energy while providing PSEG with the financial flexibility to fund our regulated investments. Our 100% owned Hope Creek unit completed a 499-day continuous run since its last refueling outage, and we recently completed work to extend its fuel cycle from 18 to 24 months, positioning the unit to produce more megawatt-hours going forward. Also, during the past quarter, the Board of Trustees of the Long Island Power Authority approved a five-year contract extension for us to continue as the operations service provider for the electric service on Long Island and in the Rockaways through 2030.

We are executing on PSEG's growth plan with a focus on operational excellence and rigorous cost discipline to maintain reliability and provide value for our customers. The need for investment and leadership has never been more evident than now, with the significant and growing supply-demand imbalance in New Jersey and the entire PJM region. To address this resource adequacy imbalance, which will adversely impact both reliability and affordability for customers in the future if it's not addressed, we are actively collaborating with current and potential future policymakers to develop real solutions in New Jersey and ensure we can affordably meet our customers' energy needs. The next quarter of New Jersey will be faced with addressing a broad set of rising costs, and implementing practical solutions to get to the root cause of these cost pressures will be a focus. These cost pressures have many sources.

For example, the latest Rutgers-Eagleton poll showed that 36% of likely voters cited taxes as the top problem facing New Jersey, while 21% said it was affordability. Other topics trail these two leading concerns, with six% pointing specifically to housing affordability and five% saying utility costs are the top problem in the state. We stand ready to work with the incoming administration to do our part to keep rates as low as possible in the short term and work on longer-term solutions to add supply. While the supply-demand imbalance remains a significant and growing problem, we expect the capacity market impact on customer bills next June will be limited by two factors.

First, the FERC-approved price collar that will extend to at least the upcoming capacity auction in December, and two, the gradualism of the basic generation supply mechanism that feathers in changes over a three-year period here in New Jersey. This assumes other supply-related costs remain the same, preserving the reduction from other charges expected to come off the bill. One energy topic where there is broad common ground is that New Jersey needs to add generation supply to reduce its over-reliance on the PJM capacity market and ensuring continuing reliability and affordability for customers, with imports having grown to over 40% of our generation consumption. Legislation has been introduced that allows electric distribution companies to compete to participate in offering supply solutions. We are supportive of legislation that would increase competition for generation supply should New Jersey decide to pursue new in-state generation.

In addition, we have sites with grid connection, capability, and pipeline supplies, as well as the in-house expertise to build new supply here in New Jersey with prevailing wage labor. Now, turning to PSEG Nuclear, we continue to implement projects designed to optimize our plants and increase megawatt production. In addition to the Hope Creek fuel cycle extension I mentioned earlier, our Salem uprate project will bring an incremental 200 megawatts to the grid during the 2027 to 2029 timeframe, as this kind of baseload carbon-free dispatchable power continues to increase in scarcity value. We also note the potential significance of the recent Department of Energy notice, which has now become a FERC rulemaking, seeking to accelerate interconnection of large loads in a way that is timely, fair, and affordable for customers. The notice is requesting that FERC take final action by April 30th of 2026.

There are many positive elements to this proposal, but it will take a while before we see the ultimate impact of the rulemaking. So, to summarize, we delivered a solid operating quarter for our customers, and our financial results through the first nine months enable us to narrow our full-year 2025 Non-GAAP operating earnings guidance to the upper half of the range at $4-$4.06 per share from our prior guidance of $3.94-$4.06 per share. We are also reaffirming PSEG's five-year Non-GAAP operating earnings growth outlook of 5%-7% through 2029, as we continue to pursue incremental opportunities to our long-term forecast, including the potential to contract our nuclear output under multi-year agreements and potential utility investments to address near-term need for additional supply due to the growing customer demand.

Notably, our balance sheet continues to enable us to fund PSEG's five-year capital investment program of $22.5-$26 billion without the need to issue new equity or sell assets and provides the opportunity for consistent and sustainable dividend growth. Before I conclude, I would like to recognize the outstanding performance of both our transmission and distribution system, as well as our nuclear business over the last quarter. Both demonstrated exceptional reliability and resiliency for our customers. This collective achievement reflects the hard work, dedication, and technical expertise of everyone at PSEG. Now, as you know, tomorrow is Election Day in New Jersey. Let me say this clearly: PSEG has been around for over a century, and we have worked successfully with every New Jersey administration on both sides of the aisle with aligned objectives for the state's advancement.

Based on our meetings with both candidates for governor, I have every confidence that we will do so again with the new incoming administration. I'll now turn the call over to Dan, who will walk you through our financial results and the outlook for the remainder of 2025, and then rejoin the call for Q&A.

Thanks, Ralph, and good morning to everybody. For the third quarter, PSEG reported net income of $1.24 per share in 2025, compared with $1.04 per share in 2024, and non-GAAP operating earnings were $1.13 per share in 2025, compared with $0.90 per share in 2024. We've provided you with information on slides 7 and 9 regarding the contribution to net income and non-GAAP operating earnings by business for the third quarter and nine months ended September 30th, 2025. Slides 8 and 10 contain waterfall charts that take you through the net changes for the quarter and year-to-date periods over the prior year in non-GAAP operating earnings per share, also by major business. Let's start with PSE&G, which reported third quarter net income and non-GAAP operating earnings of $515 million for 2025, compared to $379 million in 2024.

The utilities results were driven by the implementation of new electric and gas base distribution rates that took effect in October 2024 to recover a return of and on previous capital investments totaling more than $3 billion and higher working capital recovery. Beginning on slide 8 with the PSE&G column, our distribution margin increased by $0.30 per share compared to the year-ago period, largely reflecting the impact of the rate case plus recovery of and return on PSE&G's capital investments. On the expense side, distribution O&M costs were $0.02 per share higher compared to the third quarter of 2024, and depreciation and interest expense rose by $0.01 per share and $0.02 per share, respectively, compared to the third quarter of 2024, reflecting higher levels of depreciable plant investment and long-term debt at higher interest rates.

Lastly, the timing of taxes recorded through an annual effective tax rate, which nets to zero over a full year, had a net favorable impact of $0.02 per share in the third quarter compared to the prior year period. Following severe heat storms in June, when PSENG hit its electric system peak for the year, weather conditions during the third quarter, as measured by the Temperature Humidity Index, were 3% cooler than normal and 7% cooler than the third quarter of 2024. As a reminder, the Conservation Incentive Program, or CIP program mechanism, decouples weather and other economic sales variances from a significant portion of our distribution margin while helping PSENG promote the widespread adoption of energy conservation, including energy efficiency and solar programs.

Under the CIP, the number of electric and gas customers is the primary driver of distribution margin, and each segment grew by approximately 1% over the past year. On the capital front, as Ralph mentioned earlier, PSE&G invested approximately $1 billion during the third quarter, totaling $2.7 billion for the first nine months. Our plan for the full year of 2025 regulated capital investment remains approximately $3.8 billion, and our five-year regulated capital investment plan of $21 billion to $24 billion through 2029 is unchanged. In the first quarter of 2025, PSE&G began deploying their new energy efficiency programs, and we anticipate investing up to $2.9 billion over a six-year period under that program.

This program total includes approximately $1 billion of on-bill repayment options to help our customers finance their energy efficiency equipment and appliances and provides customers with energy information and options to manage their energy use and lower their bills. Now, moving on to PSEG Power and Other. For the third quarter, PSEG Power and Other reported net income of $107 million in 2025, compared to $141 million in 2024, and non-GAAP operating earnings were $50 million in 2025, compared to $69 million in 2024. Referring again to the third quarter waterfall on slide 8, net energy margin rose by $0.01 per share compared to the prior year quarter. While generation was down in the quarter due to the Hope Creek refueling outage, overall power pricing and market revenues were higher than in the third quarter of 2024.

O&amp;M was $0.05 per share unfavorable compared to the third quarter of 2024, mostly driven by the scheduled refueling of our 100% owned Hope Creek nuclear unit. As Ralph mentioned, our Hope Creek unit has successfully transitioned from an 18- to 24-month refueling cycle going forward, which is expected to yield additional megawatt hours as well as O&amp;M savings over the long term. Depreciation expense was $0.01 per share favorable, and interest expense rose by $0.02 per share, reflecting incremental debt at higher interest rates, and taxes and other were $0.01 per share favorable compared to the third quarter of 2024. On the operating side, the nuclear fleet produced approximately 7.9 terawatt hours during the third quarter, compared to approximately 8.1 terawatt hours in the third quarter of 2024.

For the nine months ended September 30th, 2025, nuclear generation was approximately 23.8 terawatt hours, up slightly from 23.3 terawatt hours for the same period of 2024. Capacity factors for the nuclear fleet were 92.4% and 93.7% for the quarter and nine-month period ended September 30th, 2025, respectively. In July, PSEG Nuclear cleared approximately 3,500 megawatts of its eligible nuclear capacity in PJM's base residual auction at the market clearing price of $329 per megawatt day for the energy year of June 1st, 2026, through May 31st of 2027. Touching on some recent financing activity, as of the end of September, PSEG had total available liquidity of $3.6 billion, including approximately $330 million of cash on hand.

On the financing front, in August, PSENG issued $450 million of 4.9% secured medium-term notes due August 2035, and later in August, PSEG redeemed at maturity $550 million of notes that carried a coupon of 0.8%. Overall, PSEG had significant liquidity at the end of the third quarter, which remained relatively unchanged from the end of the second quarter. PSEG's variable rate debt at the end of September consisted of a 364-day term loan at PSEG Power for $400 million, which matures in December of 2025, and commercial paper. As of September 30th, our level of variable rate debt represents approximately 4% of our total debt. In October, Moody's published updated credit opinions on PSEG and PSENG with no change to either credit ratings or outlook.

Looking ahead, our solid balance sheet supports the execution of PSEG's five-year capital spending plan, dominated by regulated CapEx, without the need to sell new equity or assets, and provides for the opportunity for consistent and sustainable dividend growth. In closing, we are narrowing PSEG's full-year 2025 non-GAAP operating earnings guidance to $4-$4.06 per share from $3.94-$4.06 per share. This updates PSEG's solid results through the first nine months of 2025, and we are also reaffirming our long-term 5%-7% compound annual growth in non-GAAP operating earnings through 2029, supported by our capital investment programs and the nuclear PTC threshold. We expect to introduce PSEG's 2026 non-GAAP operating earnings guidance, roll forward our capital investment plans, update our rate-based and long-term earnings CAGRs, and discuss this outlook all during our year-end call in February of 2026.

This concludes our formal remarks, and, Operator, we are now ready to begin the question and answer session.

Thank you. Ladies and gentlemen, we will now begin the question and answer session for members of the financial community. If you have a question, please press the star and the number one on your telephone keypad. If your question has been answered and you wish to withdraw your polling request, you may do so by pressing the star and the number two. If you're on a speakerphone, please pick up your handset before entering your request. One moment, please, for the first question. First question is from Shahriar Pourreza with Wells Fargo. Please proceed with your question.

Hey, who's that? Hey, Shahriar. Welcome back, Shahriar. And just like we did with many of your peers over the last 12 months, welcome back. It's good to hear you.

I appreciate it. You almost had me tongue-tied, and that never happened, so I appreciate that. So, Ralph, just obviously, the elections could be kind of this key threshold for data center deals in the state. We've seen data center customers walk away from local politics issues in kind of both the regulated and even deregulated markets. Artificial Island is obviously a great asset. So kind of curious if there's any pressure points forming there. And then, obviously, one of your favorite questions is, any updates on potential timelines?

Yeah. No, thanks, Shar. I'll let Dan, as we have been doing over the last couple of calls here, answer the timeline conversation. But look, I would say this, and it's more of a generic answer to you on the election and what we can expect post-Tuesday, and that is we will see. But as I said in kind of my closing comments, we fully expect to be able to work with both sides of the aisle. We've done it in the past. It's a proven track record by this company, and we feel really, really confident that that's going to continue as we move forward here in 2026. Specific to data center opportunities in New Jersey, they really haven't slowed down. We have some information in the deck about how that has continued, and we expect it to continue.

A few of those jobs have moved a little bit further along in the queue, depending upon whether you look at our queue or PJM's queue as an example. And I'll just point you to one that showed up today. It's public information. There's a TEAC meeting that's taking place tomorrow at PJM, and there's some additional load that's been identified for a job in Kenilworth that is one of our supplemental projects. So they continue to arrive here in New Jersey. We haven't seen it at the hyperscale level, and we have talked about that for many times that we expect these to be smaller, not ones that we're making big announcements about. And we don't expect those smaller, less in size announcements to be something that we're talking about, whether it's at the utility or at power. Dan, you want to talk more about the timeline?

No, I mean, I think Ralph covered it. I think we'll get a little bit more color from both of the candidates. There's been a whole bunch of stuff they've talked about during the campaign. This hasn't been the highest topic with respect to data centers as much as with respect to affordability generally on things that have touched us. But we'll get more color as the election ends and we find out where they're going to go. But in the meantime, I think it's everything that Ralph said, and we're continuing to move forward.

Okay. Great. And then just lastly, that's helpful. And then just on the 11 gigawatts, the large load pipeline, it's obviously growing. I don't want to front-run the CapEx update and the roll forward, but let me attempt it anyway. But just on the grid capacity, just, Dan, talk about, Ralph, just the grid capacity that's there to convert those into signed agreements versus how much transmission and distribution needs you're going to have as you start to convert. Thanks.

Again, I think a little bit of that is front-running some policy that will exist here in New Jersey, right? So the first, and I talk a lot about the fact that the new governor will need to make some policy decisions that will help us plan the grid for the long term. Right now, we have capacity on our grid. That's based upon the current topology. If we see new generation come in, large-scale, 1,000-megawatt plants that are showing up, that may change the grid topology a little bit. If we see more solar and more batteries, that may change the topology a little bit. So I'd be front-running to say that I could tell you that, which is why we're going to give you that full roll forward in February.

Okay. Perfect. No, thanks so much, guys. Appreciate it. See you in a few days, and Ralph, thanks for remembering me after the garden leave. Thanks, guys. Bye.

Our next question is from the line of Jeremy Tonet with J.P. Morgan. Please proceed with your question.

Hey. Just wanted to pick up on the conversation with regard to potential data center contracting here and wondering if you might be able to comment, I guess, on the flavor of conversations between your New Jersey versus Pennsylvania assets. Is there any discernible difference, I guess, in the tone of those conversations?

I wouldn't say difference in the tone of conversations, Jeremy, but I think that you're seeing different types of entities being involved between the two states. I think you have more of a forward-leaning appetite in Pennsylvania, which is enabling more to happen and more to happen on a bigger scale. And I think in New Jersey, you have not seen that as much with respect to the incentives. And so what you're seeing is still some interest in the state and some sizable interest in the state, but at a smaller scale. So I think that's probably the biggest differentiation between the two locations.

Got it. That's helpful. Thanks for that. And as it relates to, I guess, supply additions and working with stakeholders in-state, just wondering if you might be able to expand a little bit more beyond that, I guess, as far as what type of constructs PSEG will be interested in, be it regulated generation, unregulated generation, or just any other color in general on this topic.

Yeah. So, Jeremy, it's a great question. Look, we have said for many months, and we have indicated in public settings that we are more than willing to help the state achieve its goals in a regulated capacity, right? We absolutely think that we could provide some solutions for gas generation that's in a regulated manner. We also think we can continue. We've done large-scale solar on some brownfield sites, some landfill sites in the past, so we could do more on the solar front. We think there's an appetite now for some regulated storage, and we're looking forward to taking part in that, see how that plays out over the next few months. And we know that both candidates have been talking a lot about new nuclear.

Now, on new nuclear, we have also been very pointed in our responses in saying that we're not looking to put our own capital to work, but we want to enable solutions for the state. And that's where our site comes in, and we think that long term, that'll provide us with some revenue opportunities, whether it be for our operating and maintenance activities, our security activities, spent fuel storage. There's many, many things that we can do on that front without putting our own capital to work. And so that's the way we've been approaching it, and that's the way we'd like to see things play out. More opportunities first in base load generation from a gas standpoint that would be regulated, and certainly more we can do on a solar and a battery front as well.

I think if you look at both candidates and their platforms, you really see one they're both talking about everything, right? That they're looking at all these options that are out there. The real question is to what degree. I think you will see one with one candidate that might be leaning a little more towards gas-fired units and another candidate that leans a little more towards solar and batteries. But both candidates are talking about an all-of-the-above strategy, which we support and we will be part of.

The next question is from the line of Nick Campanella with Barclays. Please proceed with your questions.

Hey, good morning. Thanks for taking my questions. 

Hey, I'm good. I hope you're doing well. So, look, just the contracting discussion. We did see the multi-state kind of proposal advocating for bring-your-own-generation and the need to kind of fast-track the permitting for some of these data centers. There just seems to be an overall stress on bring-your-own-generation across the states and PJM. How is that causing the conversation around the nuke to evolve? Is it fair to say that any deal at this point would now have to come with additionality commitments, whether that's upgrades, new gas, batteries, or otherwise? Just maybe you can kind of talk to that a little bit if that's the right take.

Yeah. Are you talking about the DOE, Nick, in that? The DOE? The letter from the DOE?

Oh, I'm just wondering. I think there's just been various calls, whether it's been Pennsylvania, New Jersey, or Maryland, on just the need for data centers to bring their own generation now, and I'm just wondering how that impacts incumbent generators that were interested in potentially signing front-of-meter deals.

Yeah, Nick, I would say that if I'm capturing your question right, that there has been more dialogue around it. There has not been anything from the standpoint of requirements related to what must happen. And so I think from that perspective, I think it almost does tie in a little bit to what Ralph is talking about with respect to the DOE letter, which is trying to set some standards and trying to, I wouldn't say fast-track things, but get things moving where there is a little bit of a log jam. There's been a discussion about a whole host of topics. BYOG is one of them, but there's nothing that's mandatory from that perspective. And there's nothing about additionality that's mandatory from that perspective. And different counterparties have different environmental profiles that are important to them, but not against the backdrop of anything that is required either.

And so I think what you're saying is continued dialogue around some topics that are of interest, but are not precluding anything from happening one way or another.

Okay. All right. I appreciate that. And then there's been a lot of EPS Cregg updates this quarter. And I guess maybe you can kind of help position to the street. You're doing 9.5% year-over-year growth, 2025 through 2030 off of 2024. I see that on slide five. I know the past 5%-7% CAGR, that's not linear. But just from our perspective, we know where the capacity auctions have cleared at. We know where prices have gone. Just what are some of the negatives that we should be thinking about that kind of put you back within the 5%-7% range as we kind of think through what you can deliver on in 2026?

Yeah. What I would tell you is our update is coming in February, and we're not going to piecemeal elements of it before we get there. So we'll give you a fulsome update when we give you the update.

The next question is from the line of David Arcaro with Morgan Stanley. Please proceed with your question.

One quick clarification or maybe additional piece of data. I was just wondering what the level of mature applications would be in that data center activity that you've quoted in the past.

Yeah. So I think we moved that from 2,600 to 2,800.

I think that's the information that's in the deck.

Great. Okay. Perfect. And then as you sketch out the utility growth outlook and roll forward, I was just curious if you give your perspective now on how do you manage the affordability concerns maybe outside of just the generation front as you're planning the next iterations of your utility CapEx programs and looking at the T&D rate outlook? How are you weaving in just considerations around affordability?

Look, we always think about affordability no matter what we do here from a company standpoint. Whether it's, I can point you to our O&M slides that are in the deck and how we've held O&M relatively flat over a longer period of time. I can talk to you about the way we're implementing our AMI system right now and how we've done that, not only from a standpoint of cost and keeping rates down, but also from the impact on employees and the just transition of those folks into different positions. Affordability is not something new to us. I appreciate it's a hotter topic in different circles, but it's the way we've operated. You've heard us many times talk about the fact that we're not making any big announcements about expense savings. We normally just operate in that manner, and we'll continue to do that.

That said, we've also in the past worked through different mechanisms with the regulator to spread costs out differently. And I'll go back 20 years when the decision was made to change the depreciable life of our gas assets. And that cost was recovered in a different way from customers. So there are things that we can do working with the regulator to come up with solutions to keep T&D rates flat. We've done that recently. We'll continue to look at options for that. But this is not just an affordability issue, right? This is quickly becoming a reliability issue. And the resource adequacy is going to drive us to solutions that are going to increase supply as the demand comes online. We have to find supply. David, I don't know any other way to say it.

I think both of the candidates for governor in New Jersey recognize that. They've both said that. Again, their solutions might be a little bit different, but how we get there is the only question. It's not if we're going to get there. We need more supply in the state.

Great. Yeah, that's really helpful color. Much appreciated, and see you soon.

The next question is from the line of Bill Appicelli with UBS. Please proceed with your question.

Just following up on some of those comments you just made about finding supply, I mean, there would be a sense of urgency, I think, behind that, right? So is there an opportunity here in the veto session to push for some legislation that could support this, or do you think this is more likely something that has to be dealt with under a new administration?

Look, there's been a lot of things that have happened in this state in the past, not just from an energy standpoint, but other topics that have been handled in lame duck. And so I'm not sure whether or not that'll be the approach that's taken here, or it'll be one that's taken in 2026. But I do know it's going to be a hot topic one way or the other. And so I personally would like to see us move faster from a state standpoint. I think it would help us both from an affordability standpoint, but also from an economic development standpoint. As I mentioned earlier, we've got some headroom in the system today, and we've been using that up.

But if we're going to continue to grow this state, and again, both candidates would like to see us continue to grow the state, then one of the fundamental things we'll need is enough supply. And that's where I put my economic development hat on, and I say, "Let's get moving sooner than later." And boy, if we could have those discussions starting on Wednesday, it couldn't be soon enough.

And then just along those same lines, I mean, how do you evaluate the framework for that, right? Would this be in terms of evaluating how much generation you potentially would need from a regulated basis? Would you either be sort of an RFP approach that you could then bid on? I mean, I'm not sure if you guys could sort of describe how you would envision such a mechanism coming out.

Yeah. Look, I think that the BPU could hold some sort of an auction. I think we could go to some sort of an FRR. I think, again, I don't want to front-run anybody. I think it'd be rude to do that, so I won't. But I will tell you what it all starts with are the same four questions that we've been banging the table about, right? One, we've got to figure out what load we're going to supply, right? Two, we got to figure out what the reliability targets are going to be. Three, it's going to be emissions, right? And what are the emissions profiles we're willing to accept both if we're going to build our own generation or import it from our neighbors? Both of those have different impacts and how that plays out. And then the last thing is the definition of affordability.

We talk about affordability, but we rarely define it, whether it's at the state level or at the federal level, to be honest. Is it going to be CPI? Is it going to be regional CPI? Is it going to be state CPI? What is it going to be? And I think as we move forward, answering those four questions is fundamental to putting together an integrated resource plan.

Got it. Thank you, and then just lastly, on the outlook for the forward curves, I mean, can you maybe just speak to where you see those relative to maybe your fundamental view, or at least relative to where the PTC floor is that's embedded in your outlook?

Yeah. I'm going to let Dan answer that one. He sees that a little bit more. But I mean, fundamentally, we look out four years the way others do, so I'll give it to you, Dan. Yeah, Bill, I think you've seen some recent strength within the market. And we've been saying for some time that if you just think about all the fundamentals that are going on and the discussions that everybody's having, it's been pretty tough to try to land a plan on exactly what's going to happen from a load perspective. But the numbers are a little bit staggering. And so even a lower end of the range would imply a need for incremental supply.

And then, if you think about the supply discussions, those have always moved towards the concept of we need to move quickly because at the end of the day, it generally isn't going to come out all that fast. You just think about time for turbines and everything else. And so all of that leads you to a little bit of a more bullish place. And if you look at the forward curve, you haven't seen quite as much bullishness. We've seen some of that come up. And so I think that that feels a little bit more like a fundamental move than just some interim period of time. Although we do end up having some of those too. It seems like every time we go into winter and we get a cold day, you see a little bit of movement out the curve.

But I do think fundamentals should support a stronger price as we go forward, but the forwards are the forwards.

The next question is from the line of Nick Mazzariello with Evercore ISI. Please proceed with your question.

Hey, Nick. I think you get a welcome as well. I think this is our first quarterly call with you asking a question.

Oh, well, thanks. I appreciate that. I just wanted to dig in a little bit on Hope Creek, just kind of the extension of the fuel cycle there. Kind of what undertakings were done? I mean, was that kind of an enhanced fuel offering, or how should we kind of think about that? Is there opportunity to kind of extend that even further?

Yeah. No, Nick, it really is a lot simpler than people might make it out to be. It's just shuffling of the fuels, some different changes in the fuel design. But we didn't change to a new fuel supplier as a result, right? So this is something that's been done in the industry quite a bit. And we joked a lot about it. We had a CFO that always gave us a hard time about doing upgrades at a plant that we only had visibility for three years of life for. But he did the right thing and held us accountable to a little longer-term life before we made long-term investments. So while Dan did that, we were getting smart about the changes that we could make there. And we're following what the rest of the industry has done.

I will tell you, though, we also, at the same time, did a lot of other things at that plant to continue to reinforce both the asset itself, but also some efficiencies. And to talk about things that you might not pay attention to, but we changed out some of the insulation in the cooling tower, which just changes the efficiency of the cooling tower. And it just allows us the draft that the cooling tower is going to increase, which allows you to keep the megawatts up in the middle of the summer when, at other times, the heat and humidity might reduce the draft flow through that stack. So we were looking all the time for it.

And in that case, no big announcements, but I know we're running more efficiently in the summer months, which, by the way, is the same time we have the higher prices, right? So a lot of different things that we're doing down there. And the team's doing a nice job for us in identifying those opportunities. But specific to your question on the fuel, not a big change compared to what others have done in the industry. And no real opportunity at Hope Creek to make that an additional change. But maybe at Salem, and I know there are some operators that are looking at moving from a 12- to 18-year cycle at PWRs. The BWR, I'm sorry, 18 to 24 months. The BWRs is what we just did at Hope Creek.

The next question is from the line of Paul Zimbardo with Jefferies. Please proceed with your question. 

Thank you. Dan, just to follow up on the conversation on the forward curve, obviously, there's been a pretty big move even as of late. Could you shed some light on kind of what the hedging profile looks like at power for the next few years? And just if there's been any changes? I know we had the nuclear PTC a little bit ago. Just any overall thoughts you could give on the positioning would be great. Thanks.

Yeah. And Paul, it isn't much and it's not very different from the characterization that we've provided in the past. I mean, we said we were historically. This goes back pre-PTC to a fairly ratable three-year hedging cycle. The PTC changed that because if you're taking a look at an overall hedging portfolio that you're trying to manage risk with, you have a risk protection from the PTC. So we said we varied from that a little bit because of the PTC. But the way we've described it is just not radically different from that ratable method. And I think if you think about it generally in those terms, you'll be in the ballpark of where we are. And that's how we've been describing it. And I think that's still a good way to describe it for you.

Okay. That makes sense. And then on the capital refresh, just to make sure I understood correctly, it sounds like you will have kind of a bigger capital refresh when we do that fourth quarter roll forward. Is that a fair interpretation, or do you need some of that political and regulatory clarity? And just it's not a fourth quarter event, but sometime later in 2026.

Public Service Enterprise Group Q3 2025 Earnings Call Transcript | Fortune

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Public Service Enterprise Group (PEG) Q3 2025 Earnings Call Transcript

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