PSE&G's Large Load Pipeline Surges 47% in Q2 Due to Data Center Demand

Public Service Electric and Gas (PSEG) reports a 47% surge in its large load pipeline to 9.4 GW at the end of Q2, driven by strong demand for data centers. The majority of the pipeline consists of potential large load customers, with nearly all of them being data centers. This increase is expected to contribute to PSEG's growth in the coming years.

Public Service Electric and Gas (PSEG) reported a significant increase in its large load pipeline, rising to 9.4 GW at the end of Q2, up from 6.4 GW three months earlier. The surge, primarily driven by data centers, highlights the growing demand for energy-intensive facilities in the region [1].

PSEG's CEO, Ralph LaRossa, noted that while the pipeline has grown substantially, only about 10% to 20% of the interconnection inquiries are expected to materialize. The company is exploring opportunities to supply data centers from its 3,758-MW nuclear fleet in New Jersey and Pennsylvania [1].

The increase in potential load comes amidst a tightening power supply-demand balance across the PJM Interconnection, which includes New Jersey. LaRossa emphasized the need for a new approach to procuring capacity and resource planning, as existing market signals may not be sufficient to attract new power supplies [1].

PSEG's financial performance also showed robust growth. The company's second-quarter income jumped to $585 million, or $1.17 per share, up from $434 million, or 87 cents per share, in the year-ago period. Revenue increased to $2.8 billion, reflecting higher electric rates [1].

American Electric Power (AEP), another major utility, projects 24 GW of new load by 2030, with data centers accounting for a significant portion of this growth. AEP's five-year capital plan is being increased from $54 billion to up to $70 billion to accommodate this projected load growth [2].

The growing demand for data centers and other energy-intensive facilities underscores the need for utilities to invest in infrastructure and transmission capacity. Both PSEG and AEP are positioning themselves to meet these demands, indicating a strong outlook for the utilities sector in the coming years.

References:
[1] https://www.utilitydive.com/news/pseg-data-centers-pjm-earnings/756911/
[2] https://www.power-eng.com/business/aep-projects-24-gw-of-new-load-by-2030-mostly-from-data-centers/