PSEG faces risks from climate change, regulatory changes (including transmission planning and rates), equipment failures, supply chain disruptions, liquidity issues, cybersecurity threats, and market volatility (power and natural gas). Potential environmental liabilities (Passaic River, Newark Bay, etc.) and litigation risks are also significant. Adverse outcomes in legal proceedings, regulatory challenges, and interest rate fluctuations could materially impact financial performance and liquidity.
Financial Upside
PSEG anticipates growth through regulated capital investments in energy infrastructure, modernization, and clean energy programs. The Inflation Reduction Act's production tax credit (PTC) for existing nuclear facilities offers downside price protection. Potential transmission project awards and contract extensions with LIPA could also contribute to revenue growth. Favorable regulatory outcomes and successful execution of strategic options could lead to increased shareholder value.
