Public Service Enterprise Group
Public Service Enterprise Group Incorporated (PSEG) is a predominantly regulated energy company headquartered in Newark, New Jersey, whose predecessor, the Public Service Corporation, was formed in 1903.
Contents15 sections
Key facts
May 1903–1948Founding and Reorganization
In May 1903 the Public Service Corporation of New Jersey (PSC) was incorporated, with Thomas Nesbitt McCarter as president. In 1924 the gas and electric operations merged to form Public Service Electric and Gas Company (PSE&G). In 1948 PSC was dissolved and PSE&G became the parent company.[1]
McCarter and partners combined more than 400 gas, electric and trolley companies in New Jersey. In 1926 Thomas EdisonThomas EdisonThomas Edison (1847–1931) was an American inventor and entrepreneur who received 1,093 U.S. patents in his lifetime. He invented or improved the phonograph, the practical incandescent lamp and its supporting electric power system, motion picture camera and viewing equipment, and the alkaline storage battery, among other things, and established industrial research laboratories at Menlo Park and West Orange, and is regarded as one of the pioneers of the modern industrial research and development model.Open the full entry opened the Kearny Generating Station, then the largest power plant in New Jersey. In 1937 company engineers co-developed the world’s first fleet of diesel-electric buses.[2]
1985–May 1986Formation of the Holding Company
Public Service Enterprise Group Incorporated was incorporated in New Jersey in 1985.[3]
On May 1, 1986, PSE&G became a subsidiary of PSEG.[1]
December 2004–September 2006Exelon Merger Terminated
On December 20, 2004, PSEG and Exelon announced a planned merger. With gaps over rate concessions and market power mitigation proving insurmountable, ExelonExelonExelon Corporation is a Chicago-based American utility holding company engaged in energy transmission and distribution through ComEd, PECO, BGE, Pepco, DPL and ACE.Open the full entry gave notice of termination in September 2006 and the companies withdrew the application, pending before the New Jersey Board of Public Utilities for more than 19 months.[4]
October 2006–April 2007Ralph Izzo Takes Over
On December 7, 2006, PSEG announced that Ralph Izzo had become president and chief operating officer on October 1 and joined the board, and would become CEO upon the retirement of E. James Ferland, planned for March 31, 2007.[5]
In March 2007 the company announced that Izzo would become chairman and CEO on April 1, after Ferland had led the company for “two decades.”[6]
December 15, 2011–January 1, 2014Taking Over Long Island Grid Operations
On December 15, 2011, the board of the Long Island Power Authority (LIPA) chose PSEG to run the day-to-day operations of the Long Island grid from January 1, 2014, replacing National Grid, which had operated it for 13 years.[7]
From January 1, 2014, PSEG Long Island took over management of LIPA’s transmission and distribution system under a 12-year agreement, serving 1.1 million LIPA customers on Long Island and the Rockaways and also handling customer service and LIPA’s 18 percent share of the Nine Mile Point 2 nuclear station. About 1,400 National Grid employees were to become PSEG employees by the end of 2014.[8]
April 18, 2019Zero Emission Certificates for Nuclear Plants
On April 18, 2019, the New Jersey Board of Public Utilities voted 4–1 to award Zero Emission Certificates (ZECs) to Salem 1, Salem 2 and Hope Creek, worth about $100 million per plant per year and funded by ratepayers.[9]
Two days before the vote, PSEG notified authorities that without state support it planned to close the reactors beginning that fall. New Jersey’s ratepayer advocate and environmental activists argued that PSEG had not shown the “financial peril” the law requires. New Jersey Sierra Club director Jeff Tittel said: “This giveaway is about greed and not need.”[10]
August 2020–June 2021Tropical Storm Isaias Failures and Settlement
During Tropical Storm Isaias in August 2020, all of PSEG Long Island’s restoration and communications systems failed on the afternoon of the storm, more than one million calls got busy signals, and investigations found that critical IT systems were not working before the storm.[11]
On June 28, 2021, LIPA and PSEG Long Island reached an agreement in principle under which PSEG Long Island would forfeit $30 million over the storm failures, including $6.6 million for customers without power for over 72 hours, raise its annual compensation at risk from $10 million to $40 million, and resolve pending litigation.[12]
August 2021–February 2022Sale of the Fossil Fleet
In August 2021 PSEG agreed to sell its 6,750 MW fossil fleet, 13 units in New Jersey, Connecticut, Maryland and New York, to a fund of ArcLight Capital Partners for about $1.92 billion. Ralph Izzo said the company would become “a clean energy infrastructure-focused company.”[13]
The sale of the fossil generation portfolio was completed in February 2022.[14]
April 2022–January 2023Ralph LaRossa Succeeds Izzo
In April 2022 the PSEG board elected chief operating officer Ralph A. LaRossa to succeed Izzo as president and CEO effective September 1, 2022. Izzo’s last day as president and CEO was August 31; he then served as executive chair and left the board on December 31, 2022. LaRossa added the role of chair on January 1, 2023.[15]
January 18–May 31, 2023: Exit from Ocean Wind 1
On January 18, 2023, PSEG agreed to sell its 25% equity stake in the Ocean Wind 1 offshore wind project to Ørsted, so that “a better positioned tax investor” could join the project.[16]
On May 31, 2023, the sale was completed, leaving Ørsted North America with 100% of the 1,100 MW project. PSEG also entered into a limited transition services agreement to provide construction management and environmental permitting services for the onshore substations and transmission cable installation.[17]
October 2024Distribution Rate Case Settlement Approved
In October 2024 the New Jersey Board of Public Utilities approved PSE&G’s multiparty settlement of its electric and gas distribution rate case, with a $17.8 billion distribution rate base, a 9.6% return on equity, a 55% equity ratio and $505 million in additional annual revenues, effective October 15.[18]
February 2025Supply Auction and Bill Increases
In February 2025 the New Jersey Board of Public Utilities released Basic Generation Service auction results: from June 1, 2025, the average PSE&G residential monthly bill was expected to rise 17.24%, or $26.87. Board president Christine Guhl-Sadovy said PJM’s recent capacity auction results were the main driver.[19]
2025Full-Year Results and Operations
In 2025 PSEG had total operating revenues of $12,168 million (2024: $10,290 million) and net income of $2,111 million, or $4.22 per share (2024: $1,772 million, or $3.54 per share). It raised the 2026 indicative annual common dividend to $2.68 per share.[20]
PSE&G serves 2.4 million electric and 1.9 million gas customers. As of December 31, 2025, PSEG Power had 3,758 MW of nuclear generation capacity.[3]
PSEG’s company information page lists approximately 13,000 employees, without an as-of date.[21]
January–July 2026: First-Half Results and Summer Peak
In the first half of 2026 PSEG’s net income was $1,075 million ($2.15 per share), down from $1,174 million ($2.35 per share) a year earlier. PSEG Nuclear’s second-quarter capacity factor was 92.0%. PSE&G set a summer peak of 10,446 MW on July 2, its highest in 14 years.[22]
Sources
- Public Service Enterprise Group Inc. (opens in a new window)
- How PSEG Helped Build Modern New Jersey (opens in a new window)
- Public Service Enterprise Group Incorporated Form 10-K 2025 (opens in a new window)
- PSEG and Exelon announce termination of proposed merger (opens in a new window)
- Public Service Enterprise Group Announces Changes in Its Senior Leadership (opens in a new window)
- PSEG Hosts Financial Presentation (opens in a new window)
- LIPA Selects PSEG to Operate Electric Grid (opens in a new window)
- PSEG Long Island takes over January 1 (opens in a new window)
- Citing Urgency of Climate Change, New Jersey Board of Public Utilities Awards ZECs to Preserve Salem One and Two and Hope Creek Nuclear Plants (opens in a new window)
- New Jersey approves $300 million in nuclear subsidies; PSEG had threatened to close reactors (opens in a new window)
- LIPA, PSEG Long Island reach agreement on contract reforms in response to tropical storm failures (opens in a new window)
- LIPA and PSEG Long Island Reach Agreement for Forfeit of $30 Million (opens in a new window)
- Pro-nuclear PSEG sells 6.75-GW fossil-fired fleet to ArcLight fund for $1.92B (opens in a new window)
- Public Service Enterprise Group Incorporated Form 10-K 2023 (opens in a new window)
- Public Service Enterprise Group Incorporated Form 8-K (opens in a new window)
- PSEG to Sell its 25% Equity Stake in Ocean Wind 1 to Ørsted (opens in a new window)
- PSEG Completes Sale of its 25% Equity Interest in Ocean Wind 1 to Ørsted (opens in a new window)
- PSEG Announces Third Quarter 2024 Results (opens in a new window)
- NJBPU Announces Results of 24th Annual Electricity Auction Leading to Higher Costs for NJ Residents and Businesses (opens in a new window)
- PSEG Announces 2025 Results (opens in a new window)
- Company Information (opens in a new window)
- PSEG Announces Second Quarter 2026 Results (opens in a new window)