Earnings call transcript Q1 2023

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Ladies and gentlemen, thank you for standing by. My name is Rob, and will be your event operator [ph] today. I would like to welcome everyone to today's conference, Public Service Enterprise Group's First Quarter 2023 Earnings Conference Call and Webcast. [Operator Instructions] As a reminder this conference is being recorded today, May 2, 2023, and will be available for replay as an audio webcast on PSEG's Investor Relations website at https://investor.pseg.com.

I would now like to turn the conference over to Carlotta Chan. ahead. go Please

Carlotta Chan

welcome And first XXXX quarter Good to presentation. earnings morning. PSEG's

Chair, are Executive CEO; CFO. call today’s President Vice Ralph and Cregg, On Dan LaRossa, and as as President well

posted slides our statements and will and contain subject matters be earnings are today's and discussed at PSEG's XX-Q attachments to shortly. estimates and and release IR website that press discussion The uncertainties. various forward-looking are release on filed during our investor.pseg.com call for risks other today's

earnings or which non-GAAP as We materials. operating and from the We net with regarding loss will non-GAAP of financial also States. or differ reported disclaimer website a in generally forward-looking income discuss today's our United and reconciliations include accepted GAAP statements earnings accordance measures IR in on accounting principles in our

we Dan's will a and XX-minute Ralph’s prepared question-and-answer conduct session. Following remarks,

will LaRossa. to turn the I call over Ralph now

Ralph LaRossa

everyone Good review results. first Carlotta. quarter morning you, Thank thanks to to us for PSEG’s joining and

reported As income PSEG indicated of XXXX billion quarter $X.XX net or a compared $X in $X,XXX a $X.XX loss million net the less of our a of first for to than share release, first share quarter XXXX. or

first earnings a per or million shown release. Attachment for results the compared and exclude $XXX Non-GAAP for XXXX XXXX $X.XX first million share X quarter items in a in XXXX. to or $XXX for per provided non-GAAP The operating share $X.XX and the the of were quarter first X quarter

$X.XX our we earnings year operating solid per on delivered XXXX PSEG and achieve to to of year financial operating full share. $X.XX guidance are the performance track to begin and non-GAAP

in March predictability, grow PSEG, XX which plan Investor our we also while executing to increasing are Conference. its our outlined We

and introducing the forecast consistent decision $XXX offshore conference, during ten-year approximately million exit PSEG'S modernizing announced fleet wind to be Program first five-unit support our during transition. energy In XXXX, quarter programs, billion. that of the projects T&D the and nuclear The generation. These New invested spending generating future investments to mile for utility full the addition to Advancement retain we capital directed year $X.X policies plan capital Infrastructure its last energy infrastructure, Jersey's with will clean the in of

The program earnings PSE&G’s and largest over X% long-term the to growth date non-GAAP PSE&G’s drives plan spending for investment to XXXX outlook also of XXXX. through five-year represents capital operating X% period

carbon February. PSE&G completed order will in work to clean BPU the for Public $X.X second investments System over leaks methane these Utilities and as to New of reduce Board a Program This or And the critical continue invest emissions of to billion Gas third we effort phase our Modernization the phase its three-year proposed expand with customers. infrastructure a period. options energy Jersey in

accounting approved for of a Also, consistent making This an expense allowing is reported for impact pension PSE&G purposes. in February, pension order the accounting of methodology to component amortizing on its our with results. request modify to the BPU our rate reduce

back gas affordability the Additionally labor to reductions first during helped nuclear our unions metrics supply customer quarter, new and PSEG front. cost all operations, ratifying New in and implemented on Jersey of several milestone agreements customer achieved satisfaction with the back that

one gas Power On recognition measures, the J.D. gas residential with full performance XXXX ranking both in Power’s in among service east. first electric satisfaction east top our overall satisfaction large utilities electric in residential utilities J.D. XXXX achieved the and customer year quartile customer large of the and quarter This among PSE&G of in studies. number follows

typical month charge supply gas gas reduction PSE&G service the the customer of residential heating resulting On basic implemented per for approximately two commodity season, during XXXX bill customer. front in a reductions affordability a total XX%

Index. for its the strong Institute ranking Nuclear factor capacity Performance XXX% maintained and quarter, demonstrated fleet first on performance Indicator in at the nuclear Our a strong Power operated Operations

approval Salem the transition units fuel authorized co-owned and XX-month unit fuel transition cycle of cycle to our monitoring a also starting in enable from a our NRC fuel future. that in the to to XXXX a funding have the are XX-month Hope XXX% an We of owned XX-month Creek change required would

to synchronized our continued back generation also evaluate We upgrade of power completed the last has regional fueling decade. two Salem to the power outage scheduled units unit half for in and capacity options their increase Friday. grid this Salem a was to

all and representing our provides all constructive benefits in new discussions, New PSEG employees labor Jersey. with of to agreements XXXX. union following parties into visibility predictability unions on contracts, reached with compensation Turning four-year recently This our and

also maintained for jobs Program, PSEG economy, thousands of Training Clean hired Jobs like which was for Energy Jersey and essential During employment on new over award-winning and communities. the underserved New paying created opportunities focused employees X,XXX XXXX, good PSE&G’s

expanded believe through Governor also are power February state's Murphy's proposals a to three PSE&G $X incremental orders issued next and Jersey, combat we for billion developing billion Turning to energy which help goals, change policy can and New to opportunity executive XXXX. in the $X we support and the climate updated represent advance investment to

gas strategies consistent primary coming commercial target of long-term ready accelerated of strategic by is by the XX goals, free anticipate an the process aimed electricity sold also while that all of We to emissions three update with the agency be plan XXXX. XX,XXX moderate energy impacts months. XXX,XXX to master And at properties electrification [Indiscernible] BPU costs from XXX% a their the the all specific short- properties, XXXX. and the income jobs. all resources state of proposals achieve XX additional state the the convene expected stakeholder considering homes, roadmap implementation with future for XX% on and natural carbon next state's goals of utilities BPU to to with will and reducing to in a over executive low for achieve having orders

front, Best On Forbes Employers its to XXXX for of the PSEG list added ESG Diversity. recently America's

our Based initiative UN-backed fall. this validation and In emissions for to work targets Scope X the and continues submitting X, for addition, Target Science PSEG X, developing to towards

are off XXXX. to solid start a in We

We $X.X five-year spend PSE&G's compound same of billion share are billion, PSEG’s to to operating capital with period. billion XXXX. rate $XX capital XXXX spending X.X% drives XXXX The of on non-GAAP $X.XX $X.XX to over program and to in base X% earnings growth annual that our plan full $XX.XX with year track guidance of five-year XXXX, per for over rate

equity These utility XXXX program which without indicative to $X.XX in to position enables rate investments fleet from company per $X.XX and the the our our dividend, annual our by new sell common need of parts to It supporting nuclear growth order recently the of through capital to cash in raised generation investment share. continue we our funding or grow. us issue

for The service. XXXth forward the our XX,XXX proud We May dedicated legacy and anniversary reliable the month of marked and safe before of us employees ones the company's carrying of service. public thank

As of we runway opportunity energy look a to long the the next years, I in transition. XXX see

new transmission trends seeing policy expanded of request opportunities for are behind the future and in ahead Policy the like the work. next We New business offshore in phase infrastructure energy goals. clean charger Jersey's pushing and investment wind trickle on makers accelerated

regulated staff additional goal both with We point pursuing resources. separately as megawatts wind of Jersey's part offshore in solicitation fully of transmission the in opened In The wind other. the facilitate and interconnection substation fact, board adding PJM injection wind for XX,XXX the of the transmission XXXkV window their Power just X,XXX intentions, Deans stated solutions utility at recommended our PSEG offshore preferred New week, to next to megawatts of investment of and PSEG at XXXX. continue keeping offshore the BPU, intend power, opportunities last and

the improves value be predictability ongoing our proposition. New energy compelling of as of This networks, as Jersey find to which in investment and infrastructure well the business, we reliability hope its our the a economy the stakeholders

to operating the results, turn over details we'll Dan now his and more available the after for call remarks. your for I'll be questions on

Dan Cregg

thank and everybody Ralph. morning you, Good

$X,XXX quarter quarter to or $XXX the of quarter per or share share for XXXX, Non-GAAP the of million of share or $X.XX mentioned Ralph operating a to per for million of net penny million or As of a the than per $X.XX compared first the XXXX net $X for XXXX. was first per $XXX loss income reported compared million $X.XX share earnings XXXX. PSEG first less first quarter of for

regarding first earnings Slide We share waterfall XXXX, contribution have that takes chart by information you of the quarter-over-quarter on net by contains per provided earnings to quarter per business major operating the for non-GAAP through the non-GAAP X operating changes you and the a business. with Slide XX in share

or first quarter with income $XXX $X.XX of per in share quarter XXXX Starting of $X.XX the XXXX. million to million per share compared or $XXX reported PSE&G PSE&G. first net

the for and in of which credits per the First System or operating share Gas were additions XXXX. Modernization from quarter earnings XXXX of quarter transmission timing of per by base or lower compared were million $X the $XXX quarter first share Programs, main $X.XX and the The the Investment rate with drivers $XXX million offset taxes. our were pension non-GAAP

added Compared customers. by a share quarter flat XXXX due higher offset absence that number XXXX. the non-SIP weather reflecting growth per return adjustment service Other in compared the lower by Electric driven the $X.XX share transmission and other favorable true-up was tax was Gas GSMP offset a year credit to to results. earnings the earlier and partly share, per margin quarter penny was per and ship the the share of Gas to the both per share was higher. penny impact the by favorable Electric or investment of warm demand of of cap the first of a per margin of penny items. margin first partly Also quarter appliance a reflecting margin in a penny

the the penny unfavorable gas continued XXXX XXXX, Both XXXX, the in the investment. per a investment Lower increased quarter. in corrective earlier quarter program returns costs. penny share first $X.XX XXXXs per share quarter completed interest impact weather per distribution share in of added compared expense $XXX to primarily million credits expense year of comparison maintenance and XXXX. PSEGs per by reflecting reflecting Lower first the share of repurchase The quarter of one reflecting related penny and reduced resulted to depreciation May in share compared maintenance growth had first to X pension benefit O&M

over the tax driven of annual net the of Lastly, impact rate. But the or compared will margins, positive while of unfavorable effect sales through a of energy in rate adjustment, its efficiency promote XXXX, widespread XXXX. taxes mechanism an of use electric the gas and other reverse on weather adoption of quarter variances negative the per $X.XX flow to by to first remainder the The and an since had limits year programs. tax impact PSE&G effective the ship enabling of timing another share effective

allowed the recover of quarter quarter the XXXX first sales. to first electric of than records, measured trailing was number of us XXXX quarter the heating warmest we're XX% mechanism XX-month gas XX% be PSE&G's normal. X% the on of margin in warmer mechanism in the period. was first and days weather Growth CIP impact degree XXXX quarter up warmer Winter under the of driver the than extreme to the first continues The each and this by of CIP positive and in during customers, weather the

rollout energy spend and to in its PSE&G investments track its $X.X the transmission that including two facilities, meters. and program the the future on distribution $XXX infrastructure infrastructure the the Energy upgrades during program invested clean Mile billion; of investment in XXXX smart million efficiency energy continued to includes plan cloud first capital Last energy and Strong advancement is quarter in execute investments, of and

For of non-GAAP to forecast operating year earnings is XXXX million at unchanged PSE&G's million. $X,XXX full the $X,XXX

PSEG on expense. includes & interest Power operations, Other, fleet, Long gas including nuclear Moving and which Island activities parent our to

of to XXXX Power quarter non-GAAP earnings $X.XX non-GAAP For million per or this quarter & of per operating net compares $XXX million $XXX share. and share, operating XXXX reported earnings $XXX the of per $XXX million loss income per first share of or of $X.XX million $X.XX net and Other $X.XX share, or first or

to rose megawatt-hour. power per and by was driven benefit in per as megawatt-hour Power $X of during annual recontracting and per XXXX improvement gross with X.X rose the market $XX output, higher The the winter average the margin $X.XX a PSEG would primarily increase price that from terawatt-hours mentioned an months price the increase, from approximate approximately previously prices. result pricing step hedged this for of majority first year of the a three of realized per which of driving impacts in the by a share $X.XX from share total increase generation quarter up We most

lower gas first lower XXXX. share The of quarter share includes margin capacity capacity during $X.XX gross the reflecting also per and increase and natural revenues operations prices $X.XX of lower of per gas

reflecting reduced penny unfavorable by covering $X.XX lower spend debt financings First in parent offshore nuclear Power quarter maturing activity wind per PSEG and from XXXX XXXX. a refinancing, year were on quarter to rates. per Higher expense versus costs improved and the interest and share ago comparisons share compared higher cost

investment from to reflecting the $X.XX XXXX, lower unfavorable versus the of of and compared pension rate income. XXXX, the credits other use the that were returns XXXX. XXXX investment per Lower of partly by quarter lower a $X.XX quarter will first Taxes favorable per reverse share in the first were offset effective tax quarter of over balance share

first terawatt-hours quarter the side, the of X.X On operating quarter capacity and of XXXX at XXX%. approximately first during XXXX, produced ran the of to fleet similar the nuclear factor

terawatt-hour its generation of PSEGs production per an at megawatt-hour. approximately XXXX of average hedge XX price this XX and of XXX% to year full of the forecasting $XX For to XX% output

For annual a the improvement This and to baseload quarter nuclear for million forecast output at the compared effective balance PSEG XX to terawatt-hour XX% first earnings the million of prior incremental non-GAAP in unchanged operating reflects expected XXXX the of & Power $XXX A at the it with the the of XX $XXX this price an year majority full to per realization increase is for minimal pricing PSEG of over price megawatt-hour. forecast output year Others again of said of in the XX% XXXX. to forecasting expected XXXX, $XX average year. hedged

activity. financing recent to on Moving

PEEG As XXXX credit of had XX, billion capacity billion $X at including available of PSE&G. $X.X March

total primarily resulting at energy related of approximately had million the positions had Power on higher out and PSEG billion. $X.X money cash March from collateral to addition, cash In cash of equivalents hand hedge PEEG of prices. net $XXX XXst, postings

in returned trades PSEG high been collateral the during continue into satisfies lower to XXXX moves settle Power experience levels subject As as obligations contracts. far these XXXX XXXX price is under postings through those have XXXX, its and historical to collateral Thus remained and below market

first the was April the we April the $XXX April. XXXX new million of term-loan by the million, XXX-day in end rate variable XXX-day of maturing a prepaid variable Subsequent quarter Early rate quarter and term-loan $X.X $XXX remaining XXXX. to $XXX in million billion, replaced the term-loan due of in matured

collateral May variable expiring variable total loans billion of XX, of support PSEG had of Power's, had March outstanding billion XXXX, loan to needs outstanding XXXX March Power of As a term $X.XX and XXX-day rate April expiring $X.XX PSEG and PSEG rate term XXXX.

& been due Others' million $XXX $X.XX with additional XXXX notes to total of issued Power secured variable swapped consisting has and in PSE&G bonds million March green of $XXX XX, of term due from XXXX total in secured In March a million April. an of Also as variable rate $XXX swapped medium billion rate debt term $XXX of fixed million of of notes medium XXXX.

$X.XX $X.X operating earnings to XXXX reaffirming PSEGs As billion operations $XXX regulated contribute guidance Ralph the PSEG million, noting per Power billion. forecasted non-GAAP at the majority of forecasted with And realized at first PSE&G XXXX. expected we to during are share mentioned $X.XXX and $X.XX re-contracting $XXX price & Power that increase million PSEG & Other Other the annual to quarter has to of

are our operator we the session. formal remarks. question-and-answer concludes That ready to And begin

Operator

question of with first from proceed Pourreza is you. Guggenheim Shar Partners. with Please our Thank [Operator Instructions] questions. Thank you. And the line your

Shar Pourreza

morning. Good guys. Hey

Ralph LaRossa

Good Shar. morning,

Shar Pourreza

Good morning.

opportunities is in a but has efficiently just at been So it's finance, interest headwind looking recently, embedded I on, plan. know obviously rate first question on maybe to risk

accretive low could embed interest maybe of opportunities a especially see X of terms, the as financing costs. you pay feel need cash very you do unfolding, sort debt on convert today, market guys efficiencies And up? kind five-year benefit do you especially reiterate X have that don't You X% we some be to a you cost attractive for step side that rate to higher like equity, but since

Ralph LaRossa

Thanks so being give what there going watch a issuing is Dan which opportunity to do to have from Sure. referring and there you second I here. from equity. – look few a Yes. we're that being also there, dollars, it XQ you're folks that that I thinking to that. think for a is line to will save actually you're to to never walk away in fine and, I we a wouldn't an

certain equity in done So those but anything look I at be not that, guess and want would every to how of be one different we deals it to need we and just and that issue to did light. are structured, at don't that we that it's I look

add? So Dan, want to you

Dan Cregg

Yes.

obviously need the going basis the on that's same fit options Shar. we would is up, we're we at else consider look equity I an but look has But a we I and right finance financing when way who regular We to at for try how do we probably look would to better efficiently. to obviously think a think sure business. somebody theme, it make the all we coming it at anything that

Shar Pourreza

I was And wind if across Perfect. a the the the obviously players. very but you clear. do That proceeds strategic sales activity lease some maybe for upside just of front to that ways allocate side, offshore there's lastly occur? efficient on then mean, it's been those have any small on sort

could those environment maybe leases and there. competitive wonder be So some – for more market if I to you Thanks. you hold stable process more if a on accretive more it think to capital of

Dan Cregg

the acres know markets would perfectly I two of the are the same. I that Those you do time we offshore Maryland upsized, those off just that Yes. the serve think, have done do New that Maryland. targeted they coast best. can the Jersey I market. is don't probably that know has wind; are, acreage

it I I to perspective market going at you'd perspective an sale. say funds. And they execute it’s just a when from general to from operating were going should part corporate to that so be in, and And I you when think look think come as on of

the then not be guess business just of parts redeploying comments most, not addition for way would quickest most to down capital I do. of we're we've Probably a use the need we're within pay issuing in Ralph's embedded to, equity seen to funds and and those selling like going the some we not debt It's to as efficient what needed.

to perspective going plan. capital be not timing need do And to like we fund so that's required do the to a from what it's to

sound all, overall going that's of it's the be all I back and think just I go plan. and think to part financing

Shar Pourreza

Got today. it. on you We'll Fantastic see guys. soon. Kudos

Dan Cregg

Thanks Shar.

Ralph LaRossa

Shar. doing. Happy Thanks

Operator

question Next Chopra your is from Evercore. Durgesh Please question. with with proceed

Durgesh Chopra

here. Good time Dan. Thanks Hey. morning me giving for

Just current proceeds clear lease right? on to CapEx that the just quick – from I would Dan, – incremental be on all that the want front? to clarification the be that plan,

Dan Cregg

be Yes. be magnitude to make it and the And not we of look to but edges great, look around it we'll the go shouldn't is it transaction will overplay a most to when that's what It's for it's makes sense like. to the company as going It do going going be we life-changing that the most forward. efficient. the

Durgesh Chopra

sense. Makes

mention Okay. on the call. the I hear didn't you lift pension out on the

and what of just Sorry if still sort to I developments latest there you missed talk are is it. the considering? you're something Can that that,

Dan Cregg

Yes.

it's take same does nothing's it's something didn't think, volatility there we as But just would've the the don't I not nothing think continuing we're that if going report. And with Durgesh, productively, there's new to are continuing is anything to table, something but that to remains pension. off purpose things isn't to we're report it because really new you continue, absence Diligence the within the pursuing. to which nothing imply I dampen on. the really hear explore

Durgesh Chopra

to then clear. one very how Got out for the expectations can you range? That's on did does comment me, position one And last guidance respect you quarter that how with versus for your shake it. just and XXXX your

Ralph LaRossa

out way expected it Durgesh, Yes. to. the shook we it exactly

guidance. so why about that's we're we're, certain reaffirming So

to that gave in require talking you're Dan none you the heard that comes that just about And we across I opportunities not and flexibility things bunch the have. was that confidence think a way plan we're you also needle have us have. of answering to We're what we answers have of us. execute are with the the the front we thread of a optionalities I that hope that that – in in both we

Durgesh Chopra

much. It done does. Well so guys. Thanks

Ralph LaRossa

Thanks.

Dan Cregg

Durgesh. Thanks

Operator

proceed The Please with from Julien question America. your question. comes Dumoulin-Smith of Bank next with

Julien Dumoulin-Smith

morning time. Hey, you the Thank good for team. guys

hedging you're we're significantly following-up that? actually step higher Just on IRA, characterized the in drove change Is to all seems like there's the quarter up up value you versus that $XX. a it I nice or hedging and just deck, a that. What hedge at here step been how want that talk fourth commercial $XX Can are post versus economic here megawatt-hour pretty a prices about in strategy price? about there make is activities real there? clear being sure showing a

Ralph LaRossa

to it you give reinforce to back still give the years that I'll treasury. Dan because And in operation. until a But to out there uncertainty the get Yes. he's rules want do trading out just we some I that lot. from got There's

what there is we to describing happen. are So we what expect though

you And some there. more could details in Dan fill

Dan Cregg

a period. within some could There that in range. – describing range, Yes. a Julien, ratable higher for always drop a perfectly I are a what bounded worked shift with you and off. had what within not kind we doing. quarter bounds across It's in a some what fairly we're uptick of range some ended within so the dramatic prices, is would middle We've see range not you're do. The started scientific movement an with

capturing I did pricing. nice job decent some so of think And we that a

the across say would I as that that, thing other is everything you of sight is though not want year well. to don't The robotically lose

on come some hedges peak off So on. some have you could peak,

You some can look. It's difference on and a go as quarter-to-quarter. through make bit some of a a granular winter come hedges, that seasonal some little of hedges, could you hedges a little have bit calendar

that some other job any of described go that we think So in play some also and I capturing but to you question, your nice forward say at I as value, come did through things quarter, into look I it we more granularly the a and moving that time. frankly. think could I generically in do quarter-to-quarter

Julien Dumoulin-Smith

And clarify commentary. just to that

basically And is say to hedging, commercially anything did again of tied is or peak methodology a resolve you peak you about but this hedging more a necessarily IRA is that anything than wouldn't job this importantly? in So on it otherwise. nice terms change

Ralph LaRossa

got similar understand is You they're when can't off most continuing on take only the that point said But are some Pending a that of of because from kind that you we'll seasonal much methodologies nature. too hedges real versus nuances last are of whether balance fine through quarter definitely get path, point that a treasury counter and with what timing we've on we time. value update good perspective as hedges and comment part important peak and a there that to on things our that the is the of we we from done it. in the past. My is that step

Julien Dumoulin-Smith

Got it. can. And then super if quick I

you're proposals timeline that plans When load electrification. a that parallel bit expect just know timeline I this past, talked the these any thoughts the there? what's to alluded about in forecast the and then to developing for come? that a there especially with You higher we've about and do you

Ralph LaRossa

Yes.

out over that's I fronts. multiple going So all next to of to to think on XX – Julien, months play the XX you're going

where potentially distribution that. see Like level because depending we've PJM the big upon continue I load a light. But I which decoupled, First think at of our between we have is There that that forecasts it current transmission investments as forecast PJM believe the seen are us we we off has. internal that isn't forecast levelize additional is to this that the agreement our to drive benefit impact what year. level to at said. us will get – and from what you gap again both forecast the and for on load a those

We planning we provide that to system the authority but so is out build our transmission from that. standpoint, ultimate information, PJM a

regards the alignment of we as get And as that as alignment though energy offshore state we'll more rates think are I alignment clean turnover on and there the of of EV think to to more we as XX this little over on on plans Governor. able a specifically we whole on transition the New be to the months. I then get get that in Jersey give in you a next electrification wind XX guidance as transmission,

Julien Dumoulin-Smith

you guys. soon. Good luck Excellent. See

Ralph LaRossa

Thanks Julien.

Dan Cregg

Thanks Julien.

Operator

with with question is your from proceed next Travis Please The Miller Morningstar. questions.

Travis Miller

Good Thank you. morning everyone.

Ralph LaRossa

Hey Travis.

Dan Cregg

Hey Travis.

Travis Miller

I really wonder you process, the far? characterize know issues filing but it's up early and in III discussion come the GSMP might could the that on so if

Ralph LaRossa

Travis. Sure,

I it's is conversations right the but though, which still far think as don't flags in said in regulators. the the with what any you've had red that process key early as now, still we have seen we've we've the

stoves the this no specifically in stop at no intent into filing. all intent And think There's think what stop currently administration, with point our to end gas tied any So II office we I we'll gas. we're confident rate to – I and the at the from of the installations. that being from GSMP seen you've day the made get there's governor's comments a heard run similar that to have

little that have attention it that be different the had a it's has I a state. where we heading and So bit lack environment the policy to for think very of us is in that all is good of also will indicator

Travis Miller

away? stoves anybody's taking not you're So

Ralph LaRossa

the we mean articles I from there's you So I to the facilities. process on that. replacement our be of plan newspaper is And this careful see really to of – confidential, us can no look Yes. so right? think No, that because we at; on on that and got there's on challenge all I no

Travis Miller

Yes.

but in how of asked joking are first, have I Just one, that thinking this the about? on timeline is kind you process? and should perhaps What it early

Ralph LaRossa

in only We XX-month we're timeline usually for this yet, so talk they presiding the for like – a just about it – think those they the that. that Yes. BPU couple named just And plus into filing. I for months at things a filing officer

decision. we're away I think for months plus XX early so And

Travis Miller

much. Okay. Appreciate Great. Thanks it. so

Operator

with Weisel Scotiabank. Please questions. The next of your questions from proceed the Andrew line with

Andrew Weisel

Hi, good everyone. morning

Ralph LaRossa

Andrew. Hi

Andrew Weisel

First Hollywood you to the pressures, than agreements, had my customer question four-year cost compare writers more given success question do I'm new all deals labor bills? structures how on glad of did. the inflationary the But prior first affect that the will how is and

Ralph LaRossa

Yes.

So there. a Andrew, things couple

residential customer out as start If a would backwards lowest Jersey think in the that I I electric a few reports XXXX far XXXX just think New U.S. fourth take bills, I the look state as to me encourage. been the from there's Let I rate was at with increases.

do not the the is power. a we So about it's just we've also procure business, of it's the process way here T&D times. but in that talked And what bunch working, they

So kudos of in we start we that and the would so going that's is and to of BPU with. the to I on any nature, minimal that to be rolling have kind place, – because process that been increase –

labor the and said large of our within That is largest our O&M a own component utility. component O&M the of expenses

X% increase fact unions the X% recognize to labor and piece to relationship than that just were three is a goes indication our unions years we is was inflation the have. recognize just with the X% be relationship in our the – a will the in out negotiate, years increase we now unions that into the prior of filing that we X% it our that unions that good at case – X%. we the But have and inflation strong a have. to the when had The So it's in that rate when able that we X%, higher all state, of and in

had years. They in benefit some prior

because standpoint on So don't flat a out. a it's that it the of because again good this major I growth end the relationships and outcome pretty from I plays way have and day, factors. for of the folks flat different At working the think of will we think is rates have the our the a impact number

end So that's because expected confidence our expenses. biggest a you some others the should own as our exactly of is it what in on we give and projections and out years the component to call

Andrew Weisel

very That's congrats. so know negotiations I Great. easy; and helpful, are those never yes,

of benefit terms expect then Can of EVs Or both electric under bit mechanism. to decoupling on that as kind infrastructure is the investment soon higher you how And you demand? impact higher remind the of would and more me see revenues question residential an a Next in vehicles. affordability Would story? little with just pick-up? about be CIP you talk

Ralph LaRossa

Yes.

there. whole bunch a So in

Turnpike as seeing charging some goes, to We by that far State we that rest of the timing new it we're approval We're see seeing all starting stops. requests some granted some the the the large were BPU will come of infrastructure. see in Jersey organizations it Garden New commercial just in. business installed First in in are the rest stops as Parkway, of

going of So that it for projections in started, installations those each going on has start. us one capital and an – what that we're keep on to basis see of help and required a those just is it's forward, activity eye kind but – about that'll what standalone a

As individual far we increases, as as AMI. that and deploy we'll about load residences, more know

can just lot talk we details We more when that transition that folks cross rollout we'll here, this back had now months to Central that to that AMI went have would Jersey, as XX we – engineer that Air a in Conditioners say And have as XX about sees an connected their our he we about, worked after XXXXs. from see EVs the transition start retired as the said when I years. had we well he very New far and going in

it'll and happen it'll then So sporadically place. it'll like take-off took like – – just that, that happen deployment

place forward, excited it have about getting week. set of So first I'm that – we're but about go fact to we say just starting plans we the BPU we to out last from see are as take already these really more and will it the

Dan Cregg

that gas there that of that what lot be but a station to need system to need to too, of up at a be infrastructure will the mile work the to dated pretty is going be think side bill. things, affordability our used going see to the wallet will you're improvements I Andrew, made a on last part that end there that'll And end and I is of think, of on is is done, electric shift piece up where of the

So, well. that helps things as

Ralph LaRossa

the other the what anymore wires for pipes that's for going we're as you the from SIP, collect for And mentioned commodity on. we or capital than to the additional deploy not again, only because

Andrew Weisel

much. very you Thank Okay.

Dan Cregg

Andrew. Thanks,

Operator

the from line is of question Glenrock. questions. with Next Patterson Paul with Please your proceed

Paul Patterson

morning. good Hey,

Ralph LaRossa

Paul. morning, Good

Paul Patterson

wind wondering mentioned bit I for little could you. the point, injection the and more selection might was actually elaborate just offshore you of if mean that You a what

you If could bit I that, just elaborate more on a little guess.

Ralph LaRossa

Yes, sure, Paul.

So as BPU look the it PJM wasn't to a at selection, the our point. Deans entry recommendation Station it Switching by a was Sub to

for agreement does the that Utilities does of inside is inside means the solicitation. the be the still outside with that Public PSE&G follow approach state any fence and responsibility fence – the us the certainly if what Board it work that that, be a select PJM work The So of will agree could under competitive fence. will the and what of complete

I this be the encouraged territory. service is very to know by beyond routes we about see am Deans fact shore the to We Deans that that was And territory. what but that the wouldn't I at knowledgeable that selected. to get point, that However, our is from service And should in I'm substation. happy our go Dean's

system tell I the that is that very wind transmission offshore is it. because about into our would system of the transmission generation we've injection that happy to you gives on done take also robust us that that our work enough that indication I'm

it job So, system we've is. has might our engineering here come the nice team done what a and – readying of really a done for nice

Paul Patterson

be? number guess, might I any you potential, any about do there talk inside defense, how much we Is about when that have

Ralph LaRossa

Electric We rebuilding City Well, to down versus just until is wouldn't down magnitude comes know. territory. I the won't area what the in there we and see No. JCP&L size know in the maybe and even Atlantic of actually

flows by figured So, and to PJM between a lot of out be now then.

Paul Patterson

I the of something a going tell guess, in – to Then might to the you what That’s Okay. that XX-month cycle the starting watch, can respect XX-month potential us what I with to guess. XXXX? impact cycle, be, fuel from an fuel

Ralph LaRossa

we I capital so. to you going It's expenditure standpoint, told a think, it’s from that Well, be or same around amount. about million $XX

we'll What we're a obviously small the a very And savings some also be that. it's of result be So have megawatts. we'll get that O&M to going in will number. impact additional as is

think not yet. anywhere that published we've – don't I have We

is which I’d we stay for until work is really from million. that's and that tell nuclear interact completed, So the of just not each lot this. are of a away is of to the going to plant to then What other. engineering really And be has additional to what what any a done on ready get going we're information completed, the fuel There power engineering do that unit. disclosing going how they as we're with to $XX get the rods to actually out

Paul Patterson

so Thanks much. great. Okay,

Operator

next The your of the proceed from question Ryan line Citi. questions. Please Levine with is

Ralph LaRossa

Hey Ryan.

Ryan Levine

questions. A Hi. Hi. couple of follow are you? up How

As the you to make organization as out that year, position continues to lift mechanics company work? all a timeline later the decision or the think details in do pension of to a the continue through work the will this opportunities, you evaluate changed be has would how and

Ralph LaRossa

You with want Dan? one give that to

Dan Cregg

the what's it what announced on. – but it's schedule, large is front. watch I Yes. looks for We'll about we'll we market in Ryan there to change think, as a continue to a that XXXX on a today watch going think event, deal is really no continue being

do be as all and benefits on conditions and we move well we'll going that continuation an super around that on are that move certainty we'll overall sure to it’s everything first the market also that. works and going eye that we're keep forward diligence So, forward of all make what to that and but do important, foremost to

Ryan Levine

the or contemplating refueling are or the it. Salem, maintenance that near remaining to there the the any cycle the capacity And other then terms as Got Appreciate in there? what's color. process extend are term? fueling And to in of changes additions you

Dan Cregg

several was the NRC fuel looking we months. from to what the changing referred that has are PWR XX XX at to script Yes, plants their that in cycle

monitoring to we're down fuel in we at Salem. that. upgrades, continuing than which cycle look and So past the discussed different What we're had is are the additional what the at

come So, disclosed on meeting. we have talked to further that more about anything than not the at what we investor

Ryan Levine

color. you. the Okay. I appreciate Thank

Dan Cregg

you. Thank

Operator

question Crowdell Please with comes the Anthony line next from proceed Our of questions. your with Mizuho.

Anthony Crowdell

morning, Ralph. Good Dan. Good morning,

Dan Cregg

going you? Is are Anthony. congratulations, How your first to comment morning. Good devils? be

Anthony Crowdell

I'm It was, with congratulations, night. win a most devils. ranges. But my little answered. sad of Big questions Congratulations. my last

at forecasting utility? or think, one power quick Just using a maybe you for the Shar's earlier financing, guys I of question to maybe fund thought one on, following parent debt hybrid to either on the up additional super are I guess, CapEx

Ralph LaRossa

down look existing needs missing we think asked of have anything? parent some have that incremental the over But time, expect, Shar a the is that plan, baseline equity more the we we amount capital is through would Yes, collateral financing that off little over Anthony, finance? think but that March we're kind of on come indication we capital plan do yes. not we as at answers we down some going we're to something time. the I as will do it of as levels anticipate foremost go No, something see cycle And debt it just question, don't fund continue to make when sure collateral. and that first a the we that gave as bit then works to of we we in to

Anthony Crowdell

all so I That's much. Great. Thanks had.

Dan Cregg

Anthony. Thanks,

Ralph LaRossa

Anthony. Thanks,

Operator

the is questions. question your The Ross Fowler from Please next UBS. line proceed with of

Ross Fowler

Good morning.

Ralph LaRossa

Good morning, Ross.

Dan Cregg

Good Ross. morning,

Ross Fowler

the so echo devils. cleared congratulations I'll for a they the me broods sure. my way And laid for egg, big

So my most of been questions answered. have

Just for maybe couple Dan. a you,

came quarter, So, pretty the customer X%. around in in growth good tracking

Dan Cregg

Yes.

Ralph LaRossa

Can us earnings you've SIP growth you for what of remind with go just kind forward assumed in guidance? growth the customer your

Dan Cregg

customers, the X% for assumed than Yes, we've less range growth of And important that over number element customer time. us. for – of Right. kind the is that's X% between that's again, and

Ross Fowler

was there in to carryback, walk then XXXX, but $X.XX from your of And XXXX right. up expected XXXX. this in that tax Right, coming ended

you XXXX, sort get are now given your in rate? to $X.XX the XXXX of of that and what other back of sort things So, absence guidance

Dan Cregg

was the And was of the Yes, it. great question. that not that $X.XX biggest carryback it's chunk a entirely

was bit place takes to seeing And the it last the in still same a in early. that really in so without which is did of we're come is of that offset of collateral quarter, bunch is respect through whole lower going lower XXXX with the some which guidance, little of tailwind. puts some What interest, a that a deriving and

an former, from latter. headwind in overall still guidance the the And perspective. place from tailwind a same a we're So from the

Ross Fowler

All right. had. That's Thank I Perfect. all you.

Dan Cregg

Thanks Ross.

Ralph LaRossa

Thanks Ross. connection my you in And fill later. Panthers’ I'll on

Operator

Michael the Research. question your next line questions. The proceed Please is you. Thank with of Sullivan with from Wolfe

Ralph LaRossa

Michael. Hey,

Michael Sullivan

How you? are Hey, Ralph.

Ralph LaRossa

Good.

Michael Sullivan

Just on the about in wanted it read to Deans transmission of substation? read fact like guess take circle that I with and most And the we should as JCP&L's through got year. wind that the back think using through opportunity next the from go we to I there the should a shore fact came the solicitation that think territory and the how around? first opportunity offshore they

Ralph LaRossa

Yes. No, Michael.

at to that system think, awarded al work I robust, look, we have coming to Deans our some the that power use now an ready was that to JCP&L system the the just fact catch analogy hearing that in, to had there. work to do work that that already. more make has are What they you been doing indicated is

what switching want to Deans to station, plan. of substation from the seeing part So, into beginning, said hey, was, the part the state. we're and now had of in them we that the a originally central BPU better readiness execute the part think state, executing southern are from little they that on state, our the you the at come which I And northern on standpoint the a Deans. of place allows And

Michael Sullivan

in just next this any of Okay. That's then solicitation for And spend to very helpful. terms year? the timeline related

Ralph LaRossa

Michael. It's decade, all Yes. of the end

capital point. before transmission, for that We be to to determine rules, once what's be tax they going the figure solicitation But generator off waiting well and the end deploying us the on we'll at the go we out have races at still what's been leads, be Again that of us. treasury they saying puts there, are from anyone as through still the to get will is they the going will beginning, to process. decade

Michael Sullivan

Okay. very That’s to helpful. the one, one quick quarter. back One,

what On the sure was to? related correctly by impact the make covered electric just to I understood and margin, SIP, wanted gas not was that I the that

Ralph LaRossa

March is we think, said is some there I covered like, overall the component that revenues not. in by our of there So SIP, and is about XX%

do albeit on variability, some the end. we more so And smaller much have

I a variance are think you talking was $X.XX. about the

the significant but all. was outside that's is element some customers larger there it not it, of of So, some falls a amount, that

Dan Cregg

I&C. It's It's a of small the the I&C piece base. customer

Michael Sullivan

it. Understood. appreciate Thanks guys,

Ralph LaRossa

You bet Michael.

Operator

from next is questions. the Our with of question with Seaport Storozynski proceed Angie line your Global. Please

Angie Storozynski

Thank you.

you Day, future know detail covered of the about Analyst guys still So, this plans. during a the in I your but ask nuclear question to I want

to about more that were the talked you assets to you so waiting an nuclear And being source you guidance of do upgrades at PTCs. from utility the for IRS growth wanted important finance the of cash the assets and around

still just there plan future? with regulated you or any separate least it the them So, way easy assets come PTC is tax, question and these my at a so hope will not it to investors long-term is to these in that – question could is you a of so without separate ready like? no timing sense backed yet assets that earnings to value Or stick it strategy as in the these is just the maybe assets, are you that

Ralph LaRossa

from that. to trying that see meeting. would scenario assets at presented as want was We waiver clear to we've to that been be as expect portfolio. that possible I those Angie, any make Yes, investor a don't I and in keep with us

as clear And so, as beyond I I just can, I want can as that. to crisp be

flow, upfront, that they well plants. exactly why really really been They by continue great today run and articulated well. to run are and cash we're reasons all stand really, I they've out to be laid as we You keeping a why the those

And you that hopefully combined of differentiation. our excellence create think like very it from operating utility does when that us revenue we with you us today a so cash unique board seeing And some for differentiates are have the the stream flow, peers. across that

Dan Cregg

a asset valuable times, of think to in hard these And Angie. more

Angie Storozynski

like low have what hedges? guys I'm recognized get I mark associated main market it's it What if PTCs, what is it mean, on Do first Is to about for? so sounds to that you don't true – the waiting really I going nuclear that in getting we're But only here? just those nuclear the those is question we're going lastly, is wondering the guidance quarter. PTC, in are up waiting it come the then for with and disagree. Yes, it? any, Is that like,

Ralph LaRossa

give and going on be to it's to not to a how level give more. treated you But you can Dan revenues look Dan of the this. by definition very But details lot I'll the give treasury. that's at Yes, it high some more

Dan Cregg

is of fills receipts and the there's comparison mechanics kind the how it threshold a Angie, then to know, works just of PTC what I'm gap. the of and sure is calculation that Yes, credit a grocery you

it's would reference that went to a kind price, do order threshold. and hedges, exactly from PTC amount the around what move And an It's and is you I so how that you of hedges to just? determined, some spot define have how you how receipts happened, actual the how figure is some hedges that unclear is definition it gross it of treat they areas out is will to exactly assumption in it the that

that's so, we're waiting And on. what

are to what's through, the that the the support And there. day, a their various I the at there's what's for to across in reasonable And to significant work sense work, that way country. think going has across end just we'll answer. I got we that make units a situations think get got treasury think I of

Angie Storozynski

thinking [ph], it, I'm case, the Okay. with some In of subsidies. heard in you – replacing the lastly but from, so PTCs then the example, And collect are just them would your the would only nuclear so so, accrue for about federal thinking their XXXX. for support that plans we've state consultation about they nuclear in XXXX,

New of XXXX. So, expiring May Jersey is in

there it [indiscernible]? that structure, in current that it's fair given with assume is unlikely years would the expiration the be coincide to that, roughly again, changes any that payments So, the

Ralph LaRossa

was But And still we I all worked were do one I are of think that Angie out. – think mechanics of that think, ahead Yes, those I things be us that saying to so, that along, look did create very were honestly we the nuclear. did happy long that create we the I for PTCs solution think to a so federal that that term and see at that level. important the is had

And ultimately support PTCs the of elements the renewable types of federal funded through you about other and so that energy ITCs most think at are that level. are the if things

amount element within And moving will And towards kick so to think very that start to up end that's this. this what is once starts important another we I that's PTC in.

Angie Storozynski

thank Awesome, you.

Carlotta Chan

I Q&A this Operator, the just at we're comments. conclude Session And will turn time. over going to the to it for Ralph closing

Ralph LaRossa

Yes, well, thanks.

leave So, you again stability but appreciate I things been this those both our listen, all again saying, predictability nauseam point, and in have I getting on, we've I hopefully think, across today Q&A. the ad our confidence, questions. and that appreciate with results I at of in just three what and and robust everyone come

we've to that And to to able And We're multiple history build proud found as the of multiple, results trying better just leave times, want than been XXX years here. great been We're of proud we the organization it we've of got that to we've inherit. able it. we've achieve. we're on said we

you calling thank for So, appreciate I time. in the and

Operator

gentlemen, today’s this concludes and Ladies teleconference.

participation. And thank may You you this time. your lines disconnect for at your

Public Service Enterprise (PEG) 2 May 232023 Q1 Earnings call transcript