Should PSEG Power monetize scarce carbon-free nuclear capacity through private bilateral contracts, support regional reliability and customer affordability across the public grid, or use it as leverage in advocating for structural reform to the PJM capacity market?
Should PSEG Power monetize scarce carbon-free nuclear capacity through private bilateral contracts, support regional reliability and customer affordability across the public grid, or use it as leverage in advocating for structural reform to the PJM capacity market?
Public Service Enterprise Group (PSEG) is one of the largest and oldest energy companies in the northeastern United States. PSEG Power owns a large nuclear fleet that benefits from elevated PJM capacity prices, while PSE&G must procure capacity for millions of regulated utility customers at those same elevated prices. This puts the company in a unique strategic position. At the same time, rising demand for carbon-free nuclear power from hyperscale AI data center operators creates a major commercial opportunity for PSEG, while raising difficult questions about grid reliability, customer affordability, and market design. In this case, students learn about PSEG, the PJM capacity market, and the complexities of the electric grid. The case is paired with a live group simulation in which students act as PSEG’s planning team and build a generation portfolio under political, financial, reliability, emissions, and supply-chain constraints.
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