PSEG Plans Salem Nuclear Uprate Amid Outage

PSEG Power and Constellation Energy plan a 200-megawatt uprate at the Salem nuclear plant while an inspection finds degraded reactor components.

Updated on Nov. 3, 2026 in Utilities

Wide view of nuclear cooling towers and containment domes rising above a flat tidal marsh beside a river under pale morning light. — PSEG Power and Constellation Energy plan a 200-megawatt uprate at the Salem nuclear plant, where an inspection found degraded reactor components. AI Illustration. Upload story photo >

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PSEG Power and Constellation Energy plan a 200-MW uprate at the Salem nuclear plant, which currently has 2,280 MW of installed capacity. The company also disclosed that a visual inspection during a refueling outage at Salem 1 found the thermal shield inside the reactor vessel is degraded.

Why it matters

The uprate would add capacity to New Jersey's grid as demand grows, with PSEG Power holding a 112-MW share, while the Salem 1 issue raises questions about near-term output and costs for the state's utility customers.

PSEG's nuclear fleet ran at a 95.5% capacity factor in the third quarter, up from 92.4% a year earlier, while third-quarter income fell to $376 million, or 76 cents per share, from $622 million, or $1.25 per share. The full financial impact of the Salem 1 repairs has not been quantified.

The players

PSEG Power

PSEG Power is the nuclear generation subsidiary of Public Service Enterprise Group that operates the Salem and Hope Creek plants in New Jersey.

Constellation Energy

Constellation Energy is one of the largest U.S. producers of carbon-free electricity and co-owns the planned Salem uprate.

New Jersey Board of Public Utilities

The New Jersey Board of Public Utilities is the state agency that regulates utility rates and reviews cost recovery requests from PSE&G.

The details

PSEG Power would hold a 112-MW share of the planned uprate, with Constellation Energy owning the remainder. The company said a visual inspection during a scheduled refueling outage at Salem 1 revealed degradation in the thermal shield inside the reactor vessel, and further testing is ongoing. PSEG attributed its third-quarter income decline mainly to mark-to-market losses at PSEG Power.

Third quarter 2026: Nuclear fleet posted a 95.5% capacity factor and quarterly results were reported.
October 2026: A visual inspection revealed the degraded thermal shield at Salem 1.
November 2, 2026: PSEG filed its quarterly report with the SEC disclosing the Salem 1 issue.
End of 2026: PSE&G expects to file its distribution cost recovery proposal with the New Jersey Board of Public Utilities.

Market Landscape

FERC's rejection of key portions of the PJM Interconnection plan for interconnecting data centers and other large loads leaves PSEG's effort to sign nuclear power contracts with data center developers in an unsettled regulatory setting. The Salem uprate and related deals are being developed as the PJM market works out how large new loads will connect to the grid.

New Jersey electric customers could see changes in rates depending on how the Board of Public Utilities acts on PSE&G's cost recovery request expected by year-end. The Salem 1 outage may affect power output while repairs are assessed.

The takeaway

Nuclear output and utility rate decisions are closely linked, so the outcome of the Salem 1 inspection and the BPU review will shape what New Jersey households pay for power in the coming year.

What happens next

PSE&G expects to file its distribution cost recovery proposal with the New Jersey Board of Public Utilities by the end of the year, and the Salem 1 refueling outage is expected to be extended pending inspection results.