Welcome!

News Feed Item

PSEG Announces $12 Billion Five-Year Capital Spending Program At Yearly Investor Conference

Utility 5-year capital spending increases to $10 billion

NEWARK, N.J., March 7, 2014 /PRNewswire/ -- Public Service Enterprise Group (PSEG) announced today that it will spend approximately $12 billion in capital investments during the next five years, primarily driven by increased investments in transmission to maintain reliability. 

Public Service Enterprise Group (NYSE:PEG) is a publicly traded diversified energy company with annual revenues of more than $12 billion, and three principal subsidiaries: PSEG Power, Public Service Electric and Gas Company (PSE&G) and PSEG Energy Holdings. For more information visit www.pseg.com.

Speaking at the company's Annual 2014 Investor Conference in New York, Ralph Izzo, PSEG chairman and CEO, told the financial community that Public Service Electric and Gas (PSE&G) is implementing a 5-year capital program of $10 billion, a 20 percent increase in the level of spending over the prior five years. The additional investment is primarily due to PJM-mandated transmission upgrades to relieve projected system overloads and maintain reliability for millions of customers.

"The strategy we have put in place over the past several years is transforming the profile of our company," Izzo said. "We are reaffirming our operating earnings guidance for 2014 of $2.55 to $2.75 per share.  This year, operating earnings from our company's stable, regulated business will represent about 55 percent of earnings as we make critical infrastructure investments. Combined with the flexibility of a solid merchant generation business, we are providing shareholders with the opportunity for consistent and sustainable dividend growth.  

"Transmission lines and switching stations are the backbone of our electric grid, ensuring that we can transport power to where it's needed safely and reliably," Izzo added. "The utility has five major projects under way, with an additional 345-kilovolt line slated to be in service by June 2018." PSE&G's capital spending program is expected to lead to double-digit earnings growth at the utility over the 2013-2016 period.

Izzo noted that the company is poised to make additional investments under its proposed Energy Strong program that would harden New Jersey's electric and gas delivery systems against severe weather. If approved, the plan would protect substations that were heavily damaged by water during Hurricane Irene in 2011 and Superstorm Sandy in 2012, among other resiliency improvements. Hearings on the proposal at the New Jersey Board of Public Utilities are set to conclude today, with a decision expected as early as April. The investment dollars associated with Energy Strong are not included in the utility's capital expenditures and would be incremental once approved.

Ralph LaRossa, PSE&G president and COO, said the utility's transmission investments of $6.8 billion – up about $2 billion -- account for about 70 percent of PSE&G's capital investments and represent 60 percent of PSEG's total capital expenditures during the next five years.

"Companies have a choice in where to invest their capital," LaRossa said. "We have chosen to invest our capital in upgrading and maintaining infrastructure that is critical to New Jersey's economic health – and the more than 2 million electric and gas customers who rely on us to provide them with heat and light day in and day out."

Bill Levis, president and COO of PSEG Power, said the generation subsidiary is continuing to focus on adding capacity in an economically efficient manner by increasing the output at its nuclear facilities by 130 megawatts and at its combined cycle power plants by 150 megawatts. "Our fleet's fuel diversity and dispatch flexibility – together with access to lower cost Marcellus shale gas – allow Power to generate free cash flow and meet our commitments," Levis said.

"Our corporate balance sheet is in excellent shape, thanks to the ability of PSE&G and PSEG Power to generate strong cash flows from operations," said Caroline Dorsa, executive vice president and chief financial officer. "As a result, we can fund our capital programs without the need to issue additional equity. Ongoing cost control efforts, including effective pension fund management, are expected to result in declining O&M expenses during the next several years."

LaRossa also noted that on January 1, PSEG began operating the Long Island Power Authority's electric system under a 12-year operating services agreement. Led by seasoned utility professionals, PSEG Long Island is expected to provide $0.03 earnings in 2014, growing to $0.07 in 2016.

Public Service Enterprise Group (NYSE:PEG) is a publicly traded diversified energy company with annual revenues of $10 billion, and three principal subsidiaries: PSEG Power, Public Service Electric and Gas Company (PSE&G) and PSEG Long Island.

Want to know what's new at PSEG? Go to www.pseg.com/getnews and sign up to have our press releases sent right to your inbox.

Forward-Looking Statements
Certain of the matters discussed in this communication about our and our subsidiaries'   future performance, including, without limitation, future revenues, earnings, strategies, prospects, consequences and all other statements that are not purely historical constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ materially from those anticipated. Such statements are based on management's beliefs as well as assumptions made by and information currently available to management. When used herein, the words "anticipate," "intend," "estimate," "believe," "expect," "plan," "should," "hypothetical," "potential," "forecast," "project," variations of such words and similar expressions are intended to identify forward-looking statements. Factors that may cause actual results to differ are often presented with the forward-looking statements themselves. Other factors that could cause actual results to differ materially from those contemplated in any forward looking statements made by us herein are discussed in filings we make with the United States Securities and Exchange Commission (SEC), including our Annual Report  on Form 10-K and subsequent reports on Form 10-Q and Form 8-K and available on our website: http://www.pseg.com

These factors include, but are not limited to:

  • adverse changes in the demand for or the price of the capacity and energy that we sell into wholesale electricity markets,
  • adverse changes in energy industry law, policies and regulation, including market structures and a potential shift away from competitive markets toward subsidized  market mechanisms, transmission planning and cost allocation rules, including rules regarding how transmission is planned and who is permitted to build transmission in the future, and reliability standards,
  • any inability of our transmission and distribution businesses to obtain adequate  and timely rate relief and regulatory approvals from federal and state regulators,
  • changes in federal and state environmental regulations that could increase our costs or limit our operations,
  • changes in nuclear regulation and/or general developments in the nuclear power industry, including various impacts from any accidents or incidents experienced at our facilities or by others in the industry, that could limit operations of our nuclear generating units,
  • actions or activities at one of our nuclear units located on a multi-unit site that might adversely affect our ability to continue to operate that unit or other units located at the same site,
  • any inability to balance our energy obligations, available supply and risks,
  • any deterioration in our credit quality or the credit quality of our counterparties,  including in our leveraged leases,
  • availability of capital and credit at commercially reasonable terms and conditions  and our ability to meet cash needs,
  • changes in the cost of, or interruption in the supply of, fuel and other commodities necessary to the operation of our generating units,
  • delays in receipt of necessary permits and approvals for our construction and development activities,
  • delays or unforeseen cost escalations in our construction and development activities,
  • any inability to achieve, or continue to sustain, our expected levels of operating  performance,
  • any equipment failures, accidents, severe weather events or other incidents that impact our ability to provide safe and reliable service to our customers,  and any inability to obtain sufficient coverage or recover proceeds of insurance with respect to such events, cybersecurity attacks or intrusions that could adversely impact our businesses,
  • increases in competition in energy supply markets as well as competition from certain transmission projects,
  • any inability to realize anticipated tax benefits or retain tax credits,
  • challenges associated with recruitment and/or retention of a qualified workforce,
  • adverse performance of our decommissioning and defined benefit plan trust fund investments and changes in funding requirements, and
  • changes in technology, such as distributed generation and micro grids, and greater reliance on these technologies and changes in customer behaviors, including energy efficiency, net metering and demand response.

All of the forward-looking statements made in this report are qualified by these cautionary statements and we cannot assure you that the results or developments anticipated by management will be realized or even if realized, will have the expected consequences to, or effects on, us or our business prospects, financial condition or results of operations. Readers are cautioned not to place undue reliance on these forward-looking statements in making any investment decision. Forward-looking statements made in this report apply only as of the date of this report. While we may elect to update forward-looking statements from time to time, we specifically disclaim any obligation to do so, even if internal estimates change, unless otherwise required by applicable securities laws. The forward-looking statements contained in this report are intended to qualify for the safe harbor provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.

Logo - http://photos.prnewswire.com/prnh/20120830/MM62627LOGO

SOURCE Public Service Enterprise Group (PSEG)

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
With so much going on in this space you could be forgiven for thinking you were always working with yesterday’s technologies. So much change, so quickly. What do you do if you have to build a solution from the ground up that is expected to live in the field for at least 5-10 years? This is the challenge we faced when we looked to refresh our existing 10-year-old custom hardware stack to measure the fullness of trash cans and compactors.
The emerging Internet of Everything creates tremendous new opportunities for customer engagement and business model innovation. However, enterprises must overcome a number of critical challenges to bring these new solutions to market. In his session at @ThingsExpo, Michael Martin, CTO/CIO at nfrastructure, outlined these key challenges and recommended approaches for overcoming them to achieve speed and agility in the design, development and implementation of Internet of Everything solutions wi...
Today we can collect lots and lots of performance data. We build beautiful dashboards and even have fancy query languages to access and transform the data. Still performance data is a secret language only a couple of people understand. The more business becomes digital the more stakeholders are interested in this data including how it relates to business. Some of these people have never used a monitoring tool before. They have a question on their mind like “How is my application doing” but no id...
Cloud computing is being adopted in one form or another by 94% of enterprises today. Tens of billions of new devices are being connected to The Internet of Things. And Big Data is driving this bus. An exponential increase is expected in the amount of information being processed, managed, analyzed, and acted upon by enterprise IT. This amazing is not part of some distant future - it is happening today. One report shows a 650% increase in enterprise data by 2020. Other estimates are even higher....
Smart Cities are here to stay, but for their promise to be delivered, the data they produce must not be put in new siloes. In his session at @ThingsExpo, Mathias Herberts, Co-founder and CTO of Cityzen Data, will deep dive into best practices that will ensure a successful smart city journey.
Identity is in everything and customers are looking to their providers to ensure the security of their identities, transactions and data. With the increased reliance on cloud-based services, service providers must build security and trust into their offerings, adding value to customers and improving the user experience. Making identity, security and privacy easy for customers provides a unique advantage over the competition.
Qosmos has announced new milestones in the detection of encrypted traffic and in protocol signature coverage. Qosmos latest software can accurately classify traffic encrypted with SSL/TLS (e.g., Google, Facebook, WhatsApp), P2P traffic (e.g., BitTorrent, MuTorrent, Vuze), and Skype, while preserving the privacy of communication content. These new classification techniques mean that traffic optimization, policy enforcement, and user experience are largely unaffected by encryption. In respect wit...
SYS-CON Events announced today that 910Telecom will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Housed in the classic Denver Gas & Electric Building, 910 15th St., 910Telecom is a carrier-neutral telecom hotel located in the heart of Denver. Adjacent to CenturyLink, AT&T, and Denver Main, 910Telecom offers connectivity to all major carriers, Internet service providers, Internet backbones and ...
SYS-CON Events announced today that Pulzze Systems will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Pulzze Systems, Inc. provides infrastructure products for the Internet of Things to enable any connected device and system to carry out matched operations without programming. For more information, visit http://www.pulzzesystems.com.
There is growing need for data-driven applications and the need for digital platforms to build these apps. In his session at 19th Cloud Expo, Muddu Sudhakar, VP and GM of Security & IoT at Splunk, will cover different PaaS solutions and Big Data platforms that are available to build applications. In addition, AI and machine learning are creating new requirements that developers need in the building of next-gen apps. The next-generation digital platforms have some of the past platform needs a...
Data is an unusual currency; it is not restricted by the same transactional limitations as money or people. In fact, the more that you leverage your data across multiple business use cases, the more valuable it becomes to the organization. And the same can be said about the organization’s analytics. In his session at 19th Cloud Expo, Bill Schmarzo, CTO for the Big Data Practice at EMC, will introduce a methodology for capturing, enriching and sharing data (and analytics) across the organizati...
DevOps at Cloud Expo – being held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA – announces that its Call for Papers is open. Born out of proven success in agile development, cloud computing, and process automation, DevOps is a macro trend you cannot afford to miss. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the world's largest enterprises – and delivering real results. Am...
Traditional on-premises data centers have long been the domain of modern data platforms like Apache Hadoop, meaning companies who build their business on public cloud were challenged to run Big Data processing and analytics at scale. But recent advancements in Hadoop performance, security, and most importantly cloud-native integrations, are giving organizations the ability to truly gain value from all their data. In his session at 19th Cloud Expo, David Tishgart, Director of Product Marketing ...
Fact: storage performance problems have only gotten more complicated, as applications not only have become largely virtualized, but also have moved to cloud-based infrastructures. Storage performance in virtualized environments isn’t just about IOPS anymore. Instead, you need to guarantee performance for individual VMs, helping applications maintain performance as the number of VMs continues to go up in real time. In his session at Cloud Expo, Dhiraj Sehgal, Product and Marketing at Tintri, wil...
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devices - comp...