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PSSE initialises the model at start of simulation and sets the value of the governor reference. It does not matter what value has been set by you before initialisation, PSSE will, of course, update to the correct value to get steady state conditions.

You can change the governor reference during the dynamic simulation if you want, to perform a power reference step change.

Normally, governor reference value will correspond to Pgen, but the governor model may limit the power to maximum or minimum power limit in the governor model. The governor will hit the limitation if Pgen in load flow is outside the governor limits. If that happens either Pgen or governor limits should be adjusted.