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Now, let's talk about the regulatory environment. Because PSE&G is a utility, they don't get to set prices just willy-nilly. Instead, they operate under the watchful eye of regulatory bodies that determine the rates they can charge. These rates are usually designed to allow PSE&G to recover their costs and earn a reasonable return on their investments. This regulated environment is a double-edged sword: it provides stability, as demand for electricity and natural gas is relatively consistent, but it also limits the company's ability to maximize profits. Any changes in regulations can have major implications for their financial performance.
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