01—Abstract
Summary
Summary of the 10-K filed February 25, 2025. Cited figures are marked; the original filing is the authoritative source.
Public Service Enterprise Group Incorporated (PSEG) is a public utility holding company whose profitability depends on its subsidiaries.
Its predominantly regulated utility, PSE&G, provides electric transmission and electric and gas distribution to customers across New Jersey, while PSEG Power operates a nuclear generation business with 3,758 MW of owned nuclear capacity. For 2024, PSEG reported net income of $1,772 milliona, or $3.54 diluted EPS, down from $2,563 million ($5.13) in 2023. The filing attributes the decline primarily to changes in mark-to-market gains and losses (non-trading MTM losses of $151 million after tax in 2024 versus gains of $959 million in 2023), partly offset by higher PSE&G earnings and production tax credits beginning in 2024 at PSEG Power.
PSE&G net income rose to $1,547 millionb from $1,515 million. Looking forward, the company expects regulated capital investment of $21 billion to $24 billion for 2025-2029, with a projected compound annual growth rate in regulated rate base of 6% to 7.5% from year-end 2024 to year-end 2029. Regulated rate base grew from approximately $30 billion to approximately $34 billion during 2024.
The PSE&G distribution base rate case settlement, approved in October 2024, provides a $17.8 billionc rate base and a 9.6% return on equity. Key risks include the outcome of PJM capacity market changes and complaints, uncertainty around IRA nuclear production tax credit guidance from the U.S. Treasury (including gross receipts definition, which could materially change the PTC value), the expiration of the LIPA operations services agreement at December 31, 2025, and the proposed Salem and Hope Creek license renewal timeline. Liquidity appears adequate: total committed credit facilities were $3.8 billion, with $2.5 billion of available liquidity at December 31, 2024.
Dividends paid on common stock were $2.40d per share in 2024, and the Board approved a $0.63 per share quarterly dividend for the first quarter of 2025, an indicative annual rate of $2.52 per share. The company reported a stable Moody's and S&P outlook for PSEG and its subsidiaries, with PSEG senior notes rated Baa2 and BBB.
02—Key points
Key Highlights
- Net income of $1,772 million ($3.54 diluted EPS) in 2024, down from $2,563 million ($5.13) in 2023, driven primarily by changes in mark-to-market activity at PSEG Power.
- PSE&G net income rose to $1,547 million in 2024 from $1,515 million, supported by the distribution base rate case settlement effective October 15, 2024 and continued T&D clause investments.
- Regulated capital investment program of $21 billion to $24 billion for 2025-2029, with a projected regulated rate base CAGR of 6% to 7.5% from year-end 2024 to year-end 2029.
- Regulated rate base grew from approximately $30 billion at December 31, 2023 to approximately $34 billion at December 31, 2024.
- PSEG Power's nuclear units generated approximately 31 terawatt hours with a capacity factor of approximately 90% in 2024; nuclear production tax credits (up to $15/MWh) began January 1, 2024, subject to U.S. Treasury gross receipts guidance that could be material.
- Available liquidity of $2,511 million at December 31, 2024 against total committed credit facilities of $3,825 million; Moody's and S&P ratings are Stable for PSEG, PSE&G and PSEG Power.
- Quarterly dividend of $0.63 per share approved for Q1 2025, an indicative annual rate of $2.52 per share, up from $2.40 paid in 2024.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2024filed February 25, 2025Financial Statements
FY2024 against FY2023
| Line item | FY2024FY2023 | Change |
|---|---|---|
| Revenue | $10.29B$11.24B | −8.4% |
| Operating Expenses | $7.94B$7.55B | +5.1% |
| Operating Income | $2.35B$3.69B | −36.1% |
| Interest Expense | $882.00M$748.00M | +17.9% |
| Net Income | $1.77B$2.56B | −30.9% |
| EPS (Basic) | $3.56$5.15 | −30.9% |
| EPS (Diluted) | $3.54$5.13 | −31.0% |
| Shares Outstanding (Basic) | 498.00M498.00M | 0.0% |
| Shares Outstanding (Diluted) | 500.00M500.00M | 0.0% |
05—Questions
Frequently Asked Questions
Why did PSEG's net income decline in 2024?
Consolidated net income fell to $1,772 million from $2,563 million. The filing states the decrease was driven primarily by changes in mark-to-market gains and losses (non-trading MTM losses of $151 million after tax in 2024 versus gains of $959 million in 2023), and by the 2023 pension settlement charge. These were partly offset by higher earnings from PSE&G's T&D clause programs and base rate case settlement, and by production tax credits beginning in 2024 at PSEG Power.
What is the outlook for PSE&G's capital investment and rate base?
For 2025-2029, PSE&G's regulated capital investment program is estimated at $21 billion to $24 billion, within total PSEG capital investment of $22.5 billion to $26 billion. The company expects a compound annual growth rate in regulated rate base of 6% to 7.5% from year-end 2024 to year-end 2029. The distribution base rate case settlement approved in October 2024 provides a $17.8 billion rate base and a 9.6% return on equity.
What are the main regulatory and policy risks for PSEG Power's nuclear fleet?
The filing identifies several risks: uncertainty over U.S. Treasury guidance on the definition of gross receipts for the nuclear production tax credit, which could materially change the PTC value; the expiration of Salem 1, Salem 2 and Hope Creek zero emission certificates in May 2025, with PSEG Power having decided not to apply for the next ZEC period; PJM capacity market auction delays and complaints; and the possibility that the New Jersey nuclear plants could be retired if markets, PTCs and ZECs do not provide sufficient support.
What happens to the LIPA operations services agreement?
PSEG LI operates LIPA's electric transmission and distribution system under an Operations Services Agreement that expires December 31, 2025. The filing states PSEG is negotiating its proposal with LIPA to continue as operations service provider, but the outcome is uncertain. LIPA has selected another party for the power supply and fuel management services contract, which the company says will not have a material impact on PSEG's results.
How does the company's liquidity position look?
As of December 31, 2024, PSEG had total committed credit facilities of $3,825 million with usage of $1,314 million, leaving available liquidity of $2,511 million. Long-term debt maturities due within the next twelve months include $550 million of PSEG 0.80% Senior Notes, $350 million of PSE&G medium-term notes and $1.25 billion of a PSEG Power variable rate term loan. The company states its liquidity is expected to be sufficient to meet projected stressed requirements over a 12-month planning horizon.
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