PSEG Expands Regulated Spending Plan To $22.5–$25.5 Billion — Seeks To Defer Utility Costs
PSE&G proposes delaying certain infrastructure costs until new rates take effect in 2028, keeping base distribution rates stable meanwhile.
Public Service Enterprise Group, which owns a New Jersey electric and gas utility and a nuclear generation business, expanded its planned regulated investment to $22.5 billion–$25.5 billion for 2026–2030 in investor materials accompanying Friday's SEC filing. Its utility, PSE&G, is also seeking permission to defer certain infrastructure costs until new rates take effect in 2028 rather than immediately raise base distribution rates.
More Spending, Same Growth Target
The regulated plan is approximately $1.5 billion higher than the $21 billion–$24 billion outlook covering 2025–2029. The expanded program concentrates on replacing and modernizing infrastructure, improving local distribution reliability and funding energy-efficiency and other clean-energy programs.
PSEG continues to project annual growth of 6%–7.5% in rate base — the investment on which a utility can earn a regulated return. That unchanged growth range starts from a larger foundation: year-end 2025 rate base was approximately 7% above year-end 2024.
The company also maintains its 6%–8% annual adjusted operating earnings growth outlook through 2030. PSE&G is expected to be the main contributor.
Bridging The Wait For New Rates
PSE&G's proposed cost deferral addresses the gap between putting electric and gas infrastructure into service and including it in customer rates. Starting in January 2027, the utility would record an asset for higher interest and depreciation expenses tied to infrastructure outside existing base rates, offsetting the effect on earnings until new rates begin in 2028.
Base distribution rates would stay stable during that period. The proposal calls for a June 2027 electric and gas distribution rate application and preserves the New Jersey Board of Public Utilities' full review of whether the spending was prudent.
A separate PJM transmission cost-allocation case is expected to benefit PSE&G transmission customers by approximately $65 million annually beginning in 2027. The utility expects to apply in early 2027 to deliver the reduction to retail customers through credits.
Utility Growth Without New Equity
The regulated expansion sits inside the $24 billion–$28 billion total capital program PSEG previously reported on August 4. The company reiterated that it can finance its five-year plan through 2030 without issuing new equity or selling assets.
PSE&G served 2.4 million electric customers and 1.9 million gas customers as of December 31, 2025. Its regulated rates supply utility revenue, while PSEG Power sells nuclear energy and capacity and wholesale natural gas.
The financing framework combines utility cash flow and additional utility debt with cash generated by PSEG Power. Nuclear operations help fund growth by allowing PSE&G to retain equity needed to maintain its capital structure.
The cost-deferral request would protect earnings during the wait for new distribution rates, while leaving the state regulator's spending review intact.
Sources
- 8-K Filing — PUBLIC SERVICE ENTERPRISE GROUP INC (PEG) — SEC EDGAR
- Exhibit d173995dex99.htm — PUBLIC SERVICE ENTERPRISE GROUP INC 8-K exhibit — SEC EDGAR
- PSEG's Capital Investment Plan Supports Its Growth Outlook | Morningstar — morningstar.com
- 8-K filed 2026-08-04 — PUBLIC SERVICE ENTERPRISE GROUP INC (earlier disclosure) — SEC EDGAR
