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
While DevOps most critically and famously fosters collaboration, communication, and integration through cultural change, culture is more of an output than an input. In order to actively drive cultural evolution, organizations must make substantial organizational and process changes, and adopt new technologies, to encourage a DevOps culture. Moderated by Andi Mann, panelists discussed how to balance these three pillars of DevOps, where to focus attention (and resources), where organizations might...
After more than five years of DevOps, definitions are evolving, boundaries are expanding, ‘unicorns’ are no longer rare, enterprises are on board, and pundits are moving on. Can we now look at an evolution of DevOps? Should we? Is the foundation of DevOps ‘done’, or is there still too much left to do? What is mature, and what is still missing? What does the next 5 years of DevOps look like? In this Power Panel at DevOps Summit, moderated by DevOps Summit Conference Chair Andi Mann, panelists loo...
"When we talk about cloud without compromise what we're talking about is that when people think about 'I need the flexibility of the cloud' - it's the ability to create applications and run them in a cloud environment that's far more flexible,” explained Matthew Finnie, CTO of Interoute, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend 21st Cloud Expo October 31 - November 2, 2017, at the Santa Clara Convention Center, CA, and June 12-14, 2018, at the Javits Center in New York City, NY, and learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.
No hype cycles or predictions of zillions of things here. IoT is big. You get it. You know your business and have great ideas for a business transformation strategy. What comes next? Time to make it happen. In his session at @ThingsExpo, Jay Mason, Associate Partner at M&S Consulting, presented a step-by-step plan to develop your technology implementation strategy. He discussed the evaluation of communication standards and IoT messaging protocols, data analytics considerations, edge-to-cloud tec...
@DevOpsSummit at Cloud Expo taking place Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center, Santa Clara, CA, is co-located with the 21st International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is ...
When growing capacity and power in the data center, the architectural trade-offs between server scale-up vs. scale-out continue to be debated. Both approaches are valid: scale-out adds multiple, smaller servers running in a distributed computing model, while scale-up adds fewer, more powerful servers that are capable of running larger workloads. It’s worth noting that there are additional, unique advantages that scale-up architectures offer. One big advantage is large memory and compute capacity...
The financial services market is one of the most data-driven industries in the world, yet it’s bogged down by legacy CPU technologies that simply can’t keep up with the task of querying and visualizing billions of records. In his session at 20th Cloud Expo, Karthik Lalithraj, a Principal Solutions Architect at Kinetica, discussed how the advent of advanced in-database analytics on the GPU makes it possible to run sophisticated data science workloads on the same database that is housing the rich...
New competitors, disruptive technologies, and growing expectations are pushing every business to both adopt and deliver new digital services. This ‘Digital Transformation’ demands rapid delivery and continuous iteration of new competitive services via multiple channels, which in turn demands new service delivery techniques – including DevOps. In this power panel at @DevOpsSummit 20th Cloud Expo, moderated by DevOps Conference Co-Chair Andi Mann, panelists examined how DevOps helps to meet the de...
In the world of DevOps there are ‘known good practices’ – aka ‘patterns’ – and ‘known bad practices’ – aka ‘anti-patterns.' Many of these patterns and anti-patterns have been developed from real world experience, especially by the early adopters of DevOps theory; but many are more feasible in theory than in practice, especially for more recent entrants to the DevOps scene. In this power panel at @DevOpsSummit at 18th Cloud Expo, moderated by DevOps Conference Chair Andi Mann, panelists discussed...
What's the role of an IT self-service portal when you get to continuous delivery and Infrastructure as Code? This general session showed how to create the continuous delivery culture and eight accelerators for leading the change. Don Demcsak is a DevOps and Cloud Native Modernization Principal for Dell EMC based out of New Jersey. He is a former, long time, Microsoft Most Valuable Professional, specializing in building and architecting Application Delivery Pipelines for hybrid legacy, and cloud ...
Amazon started as an online bookseller 20 years ago. Since then, it has evolved into a technology juggernaut that has disrupted multiple markets and industries and touches many aspects of our lives. It is a relentless technology and business model innovator driving disruption throughout numerous ecosystems. Amazon’s AWS revenues alone are approaching $16B a year making it one of the largest IT companies in the world. With dominant offerings in Cloud, IoT, eCommerce, Big Data, AI, Digital Assista...
Artificial intelligence, machine learning, neural networks. We’re in the midst of a wave of excitement around AI such as hasn’t been seen for a few decades. But those previous periods of inflated expectations led to troughs of disappointment. Will this time be different? Most likely. Applications of AI such as predictive analytics are already decreasing costs and improving reliability of industrial machinery. Furthermore, the funding and research going into AI now comes from a wide range of com...
For organizations that have amassed large sums of software complexity, taking a microservices approach is the first step toward DevOps and continuous improvement / development. Integrating system-level analysis with microservices makes it easier to change and add functionality to applications at any time without the increase of risk. Before you start big transformation projects or a cloud migration, make sure these changes won’t take down your entire organization.
Internet of @ThingsExpo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 21st 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 devic...