PSEG Power enters PJM's bilateral matchmaking process with multiple data center supply proposals

PSEG Power, the unregulated generation subsidiary of Public Service Enterprise Group, disclosed on 4 August 2026 that it has submitted multiple power supply proposals in PJM Interconnection's bilateral contracting process for data centers, company officials said during a second-quarter earnings call.^[1] The disclosure is the first public confirmation that PSEG Power is actively competing for long-term supply agreements under the framework PJM filed at FERC on 31 July 2026.

What PSEG Power is offering

PSEG Power has floated several power supply proposals in New Jersey and other parts of PJM in the bilateral contracting portion of PJM's initiative, according to Ralph LaRossa, PSEG chair, president and CEO.^[1] PSEG Power is also continuing discussions with potential customers "that see value in our existing nuclear production, future nuclear upgrades and other generation."^[1]

PSEG Power owned approximately 3,760 MW of nuclear generation capacity in New Jersey and Pennsylvania at the start of 2026.^[1] The company cleared roughly 3,600 MW in the PJM capacity auction at the $325/MW-day collar and submitted proposals for new dispatchable generation under PJM's Reliability Backstop Procurement.

LaRossa declined to provide more details, saying PJM's plans are in flux, including its load forecast.^[1] On the same day as the earnings call, PJM said it was reducing its load forecast for the Commonwealth Edison zone in northern Illinois by 1.3 GW in 2031 and 3.3 GW in 2034 based on the utility's reduced data center pipeline - a change that could affect transmission development in PJM.^[1]

The bilateral process and its timeline

PJM's reliability initiative is structured in two parts:

• A facilitated bilateral matchmaking phase, already underway, in which PJM connects supply developers with large load customers for long-term contracts. PJM's board decision document states that the first bilateral matches were expected in August 2026, with the process running approximately six to nine months in parallel with the central procurement.
• A one-time Reliability Backstop Procurement auction starting 30 September 2026, designed to fill any remaining capacity gap after bilateral deals are signed.^[1]

The Board directed PJM to conduct the one-time Reliability Backstop Procurement beginning in September to acquire additional capacity after the 2028-2029 Base Residual Auction produced a 6,831 MW shortfall. Any bilateral contracts signed before the auction closes will reduce the volume PJM needs to procure centrally.

Alongside the backstop procurement, PJM launched a facilitated bilateral matchmaking process intended to connect new electricity demand with prospective suppliers. PJM said bilateral contracting was strongly supported by stakeholders and is expected to help bring new large loads onto the system.

New Jersey regulatory backdrop

PSEG officials said they were "encouraged" by a report released last month by the New Jersey Bureau of Public Utilities that explores potential changes to the utility business model in the state.^[1] The most significant near-term strategic move was PSE&G's plan to file a base rate case by year-end 2026 - accelerating from a 2029 deadline - to align with New Jersey's Executive Order 1 regulatory review and recover distribution investments.

PSEG Power's operating earnings climbed to $83 million from $52 million in the second quarter, aided by higher capacity prices, increased nuclear generation, and gas operations. CFO Daniel Cregg said the company continues to pursue nuclear revenue opportunities, competitive transmission projects and incremental utility infrastructure projects. Excluding one-time items, PSEG expects its operating earnings will grow by 6% to 8% a year through 2030.^[1]

What to watch

FERC's response to PJM's proposals will likely "influence utility capital investment, data center development timelines and the allocation of reliability risks and costs," ClearView Energy Partners said. The bilateral matchmaking window is the near-term signal to track: whether PSEG Power converts its proposals into signed agreements before the 30 September auction opens will indicate how much appetite data center developers have for utility-grade supply arrangements - and how much of the 6,831 MW shortfall PJM will still need to fill through central procurement.