PSEG is working to meet the energy needs expressed by New Jersey Gov. Mikie Sherrill (D) and is gearing up to help with the potential expansion of the state’s nuclear and gas generation fleet, the utility’s CEO said in its fourth-quarter earnings call.
CEO Ralph Larossa, after presenting the company’s expectation of 6 to 8% compound annual growth through 2030, said it could be even higher given some of the initiatives drafted by the state to increase its energy generation capacity and curb rate increases.
“We have been cooperatively working with policymakers since last November,” Larossa said on the Feb. 26 call. He also cited a bill introduced in recent days that would establish a new natural gas power plant procurement program at the Board of Public Utilities “and incentivize the development of new natural gas power plants in the state.”
“This gas bill pairs with an earlier bill that establishes a new nuclear procurement program, also within the BPU, that was introduced at the start of this legislative session,” he said. He added that the utility would “support legislation that would increase competition for generation supply, should New Jersey decide to pursue new in-state generation.”
The utility is “well positioned to help meet that need,” he said. “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.”
Sherrill, who took office Jan. 20, has prioritized tackling the energy problem. She released two executive orders on her first day that sought to freeze electricity rates and implement a range of policies designed to improve energy efficiency and stimulate the development of new generation. (See New N.J. Governor Rapidly Confronts Electricity Crisis.)
As part of that effort, the BPU issued a request for information to the state’s four utilities probing their response to issues such as how to speed up connection and how they are complying with new rules instituted in 2025 to modernize the grid. (See N.J. Looks to Utilities for Solar Expansion Answers.)
Asked about specific issues that may concern PSEG as it works with the governor’s administration, Larossa said, “the way we’ve been thinking about it is trying to help policymakers think through and then enable the opportunities for gas or for new nuclear.”
Big Nuclear, Not SMR
Introduced on Feb. 24, bill A4491 would direct the BPU to launch a request for expressions of interest in developing new natural gas power plants that could generate at least 1,100 MW. The legislation sets out the conditions that would need to be met for the BPU to approve the plant and gives the agency authority to grant financial support in the form of a Natural Gas Development Charge and Natural Gas Energy Certificates (NGECs).
PSEG neither owns nor operates gas plants, having announced plans in July 2020 to sell all its fossil plants, a task the company completed in February 2022, said spokesperson Marijke Shugrue. The utility owns and operates three nuclear plants in South Jersey.
Larossa did not specify what role the utility might play in the development of new gas or nuclear plants. Asked for clarification, the company referred RTO Insider to an article Larossa released after the election. It outlined the state’s problems — including the predicted generation shortfall — and called for the state to “immediately open a process to procure in-state generation.” Larossa added that “PSEG is ready to deliver new generation quickly and affordably.”
At present, however, New Jersey law prohibits regulated electric utilities from building or owning generation plants.
Asked on the earnings call about the company’s interest in hosting small nuclear reactors (SMRs) on its South Jersey site, Larossa said “if we were advocating, we’re advocating for — on a nuclear front — big nuclear. We think that that makes the most sense based upon our property and our footprint.
“We have a site that makes a ton of sense, where we have pipes, wires running to it already. SMRs, from our standpoint, would not be the highest and best use of our property, but one that would be open to people if that was really what folks wanted us to enable. Remember, our early site permit is technology agnostic, so we could go in any direction on that.” The U.S. Nuclear Regulatory Commission in 2010 issued an Early Site Permit for the site in 2010.
Q4 Results
PSEG reported 2025 net income of $2.11 billion ($4.22/share), compared to $1.77 billion ($3.54/share) for 2024. Net income for the fourth quarter was $315 million ($0.63/share), compared to $286 million ($0.57/share) a year earlier.
