PEG - Earnings call transcript Q1 2024 | Public Service Enterprise Group Incorporated

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Operator

Ladies and gentlemen, thank you for standing by. My name is Rob, and I am your event operator today. I would like to welcome everyone to today's conference, Public Service Enterprise Group's First Quarter 2024 Earnings Conference Call and Webcast. [Operator Instructions].

As a reminder, this conference is being recorded today, April 30, 2024, and will be available for a 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

The and welcome On and and posted First XXXX IR and and Quarter and today's during for risks and Good investor.pseg.com, discussion today's call to are Presentation. CFO. President to call Vice forward-looking today's Craig, President statements website are release, Ralph that Earnings attachments Dan slides morning, Executive PSEG's press LaRossa, and be are will various CEO; discussed XX-Q on other today. PSEG's later matters our estimates subject filed earnings at our uncertainties. release and contain Chair

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

a we turn prepared remarks, the Following over will to call now the question-and-answer LaRossa. Ralph conduct session. I will XX-minute

Ralph LaRossa

to for guidance Good Carlotta. the morning you, XXXX us earnings with results are financial results. first to reaffirming Thank first our per and quarter for $X.XX expectations are non-GAAP in our to thanks quarter and year $X.XX for PSEG's line operating XXXX joining review of full share. everyone, we PSEG's

lower while energy reaffirming reducing to also customers long-term helping emissions workplaces while and today. by PSEG's energy non-GAAP This homes X% electrification and We be execute operating infrastructure on of are are support strategy greater will also by greenhouse earnings which our efficiency their XXXX, to continuing our to also in investing we transportation, bills. grow programs, X% which accomplished gas through

reported XXXX. compared $X.XX absence $X.XX GAAP of earnings first in XXXX to which $X.XX per to per of earnings compared the in in that quarter $X.XX were income share first per the quarter net per to reflects operating the first Non-GAAP XXXX. in of share quarter gains share XXXX, XXXX. mark-to-market benefited of PSEG Turning share

reminder, by X release. The a base shown we pending we our on in These build attachment quarter the as As year. the driver from growth earnings was resolution replacement, rate exclude main investment-related higher of the which items X, await with XXXX and for non-GAAP investments over results was provide focused rate will the balance the which case later of our infrastructure expenses distribution this offset expense. continued

will want I expect credit financial Power In through XXXX went and of protection versus But our to predictability and January tax review to into the detailed XXXX, on contributor Dan increasing important addition, XXXX, to increase in X, the realize nuclear back of the most we a which note the fleet half the the second later year. effect production the with provide downside contribution an during nuclear for gross call. provides results. of Other, skewed PSEG's be to XXXX of half PSEG in XXXX margin some margin will as price

Turning to operations.

base Shifting and quarter, is case, pending of of hours supply region as thousands also Jersey our early carbon-free operated wind nuclear and tens on rate nuclear our terawatt an rate following pleased are rain year. exemplify the quickly achieving capacity to of the utility our PSE&G electric And at to both in customers Island operational our of excellence. reliable, combined base gas challenge report case Power, restoring service and of met businesses and the PSEG and covering factor a XX.X% to at storms well XX% We with continue the PSEG X progressing fleet Long that expected our during the energy. over BPU. in and to of update severe distribution New baseload

submitted weeks rate XXXX. anticipate parties later time on the prior currently recent through of the to and tester will updated for in quarter. The from later be to Based we discussions financials. settled responding settlement that case for lines, in includes beginning this we case information documentation recently the second built-in several phase, rate case are requests schedule procedural and and discovery working the We case

filing X% reminder, gas overall a this seeing As revenue residential combined increase a period. proposed over and X% a electric combined growth this or XX% with and of electric proposes less gas an typical and X-year increase customers of than compounded

gas customer During to satisfaction the focus have minimize cost share continues are and on peers in residential manage wallet our regional customer to a reliability, bills nonstop nationally and reputation consistently of the delivered comparisons we for on electric continuing scores. to containment, national O&M period, basis. same PSE&G a for affordability among favorably lowest and compare service With to its while on top-tier

to investments. on moving Now capital

also Jersey XXXX transmission from to PJM's on the wind. as to The the potential XXXX PSE&G winners projected on is XXXX. PSEG award project bids program, the premised through our investments in track $XXX on program. for are billion of New of of through BPU prior execute and schedule future X $XX X.X% replacement future to second the million billion result half in solicitation pursue prebuilt and energy the growth to growth. Among of In or planned a in offshore period. still placed million transmission solicitations base million April currently infrastructure billion for budget a the $XX XXXX this We on project billion, year-end. other to regulated over are smart up plan or service for X-year evaluating into XX% XXXX. to $XX to to are XXXX was prebuilt still PSE&G X.X PSEG's region. is $XX EE rate of PSE&G's the year upcoming These of our XXXX, continue those completion Public and through has in PSEG's our submitted rate Board $XX.X X% clean opportunities, well regulated that July. and capital Mid-Atlantic and to portion about AMI of is compound program year-end we meters to base through annual focused infrastructure by winner the is process. on as X.X Window X the installed The we of solicitations expected announce the regulated investment BPU Similar of opportunities which infrastructure support Utilities its evaluating competitive billion

transmission The second the public wind BPU's offshore approach. solicitation first is policy for state utilizing agreement the infrastructure

to is nuclear pursuing modest Expansion also been center paths PJM. At spending throughout impacts and Regional load is second that Plan the data influenced solicitation, is capital electrification include Transmission growth higher The which load expectations of with expected growth XXXX growth multiple have forecast X increased window by fleet needs. Power, our PJM's

intention XXXX in X to previously XXX notified hourly commented XX-year have New and thermal Salem capabilities This XXXX, Regulatory of of We and Commission license which Jersey. to from subsequent Nuclear the in Nuclear the PSEG additionality add for the for for has Nuclear XXX, uprates XXXX, on qualify our will units both would to XXXX operational our clean X potentially Hope capacity its rules tax pursue and additional also could megawatts extend hydrogen XXXX and credits reactors X magic. and at respectively. Creek sound current renewals plans station, under up for for

from in discussion has site. power opportunities our about artificial direct nuclear, potential island the been data lately X-unit sales for there these centers Beyond to

economic highly in form for for carbon-free both to and a new at Jersey we inquiries has New long baseload to create data reliable ready with of artificial by between sides stand the policy, Jersey and midsized the data the meter intelligence its XXX had has center prioritize history nexus recent generation. PSEG to potential of challenges have in to opportunity of discussions support goals. of faced We the energy facilities in-state center approximately that an facilities, New This to business megawatts all co-located and recent create inquiries policy related nondispatchable efforts from aligning in construction the existing a development behind hub. months. power without XX PSE&G meter

reliable, access to hyperscalers. data units for Our consideration through upon X% is guidance certain all is this and be in based these baseload price. center could rate thing point source that and provide long-term PTC power is and large threshold of X% to growth of the Nuclear nuclear incremental One our will a mission-critical at developers highly to carbon-free Jersey XXXX that increasingly that New infrastructure opportunities forecasted

remarks. will employees all close operations without Another is results now our nuclear that differentiating detail. to customers. I'll to provide turn my and reliability with factor by new and assets. and your to business discuss like be remarks call Dan the need sell our safety, for for do thanking or the fund our to financial plan greater and I their his to added the flexibility after the our issue questions investment equity PSEG available for over in overall dedication current I'd regulated outlook they to its

Daniel Cregg

you, Ralph. everyone. Thank Good morning,

a reported on rates in for in settled operating And other were $X.XX XXXX gas share share at investment per X per by provided operating per margin main first or as continued quarter both corrective of total, driven not higher share per $X.XX PSE&G, per through interest rain, expense, and 'XX share quarter pending XXXX. growth X major to and share net per unfavorable and year expense of infrastructure increased compared share, share of meter costs our compared events per compared replacement, in related and well XXXX, that of by quarter first you this XXXX, earnings margin XXXX $X.XX business which yet $X.XX the in $X.XX operating XXXX. to with $X.XX the Non-GAAP As comparison quarter net in first per continued to due quarter higher regarding per expense offset in at in a quarter. share quarter and the per XXXX. the quarter gas distribution the case pension for to to contains by $X.XX the Ralph of per inspections quarter O&M of income anticipated wind both $X.XX had OPEB income severe in to The We Slide non-GAAP of in income rate waterfall XXXX, quarter. earlier $X.XX per which following flooding of and overhead to first share net mentioned cessation a per contribution non-GAAP the information $X.XX XXXX. maintenance credits, to quarter-over-quarter resulting operating earnings to earlier, drivers the early earnings share of reflecting for earnings Slide XXXX year. Lower in Compared the rate for base PSEG of share. Distribution for changes for higher non-GAAP first first $X.XX net to increased with and share by non-GAAP you takes of from $X.XX share trimming. reflected Depreciation transmission the from ended and results compared chart in investments compared These XXXX later OPEB-related growth be the by the PSE&G first and recovery costs. income reported O&M share first business. Starting share tree in $X.XX $X.XX $X.XX utility per in was distribution investment. and primarily per as resulted the weight depreciation share, margin year at and respectively, interest per

XXXX. the timing rate, of a in -- in measured effective to of impact a warmest quarter net heating during tax quarter favorable compared the PSE&G's X an nets annual degree quarter, over per had full the $X.XX records. first year by to recorded the share first as Lastly, through Weather taxes which

impact in in ongoing program and mentioned, electric initiatives. the or its regulated limits on meter Incentive These the As replacement or include investments weather helping advancement adoption of infrastructure the Program make-ready efficiency during rollout positive promote negative investments gas mile track infrastructure of other SIP PSE&G we've billion, variances, smart broadly the Strong Energy replacements EV XXXX upgrades execute of modernization on sales margins energy and while EE, Conservation the continued of the on which of Ralph PSE&G first and to approximately approximately gas past is and remain infrastructure continue over infrastructure. to spend our X% T&D mentioned, under capital driver the on The the energy electrification electric of year. On and programs. capital grow spending, the $XXX and by invested plan to number mechanism, margin as $X.X our II we customers, spending, and investment installation focused quarter, last the million facilities, gas clean and SIP

filing XXXX framework June $XX XXXX are commitments in XXXX plan made BPU at XXXX with based investments includes to billion filed would We $XX the regulated enable starting upon capital year. plan of This the reaffirming $X.X BPU's through this X-year EE the January investment CEFEEX of billion which December our later to billion. XXXX,

for XXXX, non-GAAP $X.XX $X.XX Moving of share share quarter to $X.XX share quarter the of XXXX. the of quarter PSEG Other on Non-GAAP first of for first compared operating for to income & $X.XX of were and first net other, per XXXX. Power first PSEG compared earnings XXXX per reported for per Power the of to operating share per quarter earnings the

partially For the first $X.XX X credit nuclear impact into energy capacity by net quarter the driven reduction which this favorable margin year, effect per went nuclear net $X.XX including by offset of by this revenue. contribution year, of from production rose a in the share, of tax January

XXXX. O&M to results quarter this nuclear rates, first the of will higher based XXX% when offset was realized a year. the the by unfavorable, anticipate of Taxes We of XXXX. the annual increase terawatt during in shape in at $X.XX based X.X primarily quarter PSEG the quarter of owned by XXXX year, quarter PTC the of hours terawatt in driven of to gross short-term pricing Creek realizing per plant. hours be partially scheduled hedge winter $X.XX first interest per approximately lower margin the reflecting lower standpoint, the refueling XXXX and earlier effective shape first in underlying Power will compared will our of in by XXXX through XXXX's during on the in $X.XX compared fleet of factor were share, move differ at year a balance while produced start balances. a to last of over unfavorable reverse gross step-up the price the XXXX, majority tax other the operating hedges. margin. over Importantly, most the period capacity per year the XXXX. From the higher for to rate expense the the of share from nuclear our half of mostly second there we as that begins reflecting debt the the This upon X.X the the Interest ran XX.X%. our year use compared and Oak And quarter an increased

outage, include on which nuclear cycle preliminary undergoing its unit extension is fuel Creek scheduled Our Hope refueling work will the project.

Hope is case as At a billion activity. outages billion, quarter. Touching liquidity As a financing our on unit, little a with available of generation Creek and had result, owned we of higher on including expect for $X the some always second March, XXX% lower the of hand. PCG O&M recent end $X.X cash in total the

X facilities rate by of loan, credit revolving quarter. of XXX-day matured end term term to XXXX billion from variable of had The these also of $X.XX PCG year variable variable in first million rate, rates. totaling swapped a March rate fluctuations term a entirety the interest which the XXXX loans had loan mitigating to in April outstanding extended March, a March outstanding of At Our were XXXX. during of maturing subsequently $XXX PSEG the rate of were Power billion and a fixed $X.XX in

issued of and of As notes $XXX at March minimal end and XX-year of at PSE&G billion million the of in April million on the the senior medium-term was $XXX position, pay $X March rate million notes, XXXX. at notes used X.XX% XXXX. given swaps portion of consisting of proceeds March, April and the $XXX be we $X.XX X.XX% of X.X% due $XXX will of of Later to of secured million our proceeds A March, variable portion and consisting through $XXX through the senior maturity X.XX% used PSEG billion to X.X% debt. In XXXX issued of XX- at due cash early secured A XX. $XXX had of March MTMs in June. maturity XXXX March, pay million million X.XXX%

maintain We ratings. continue to investment-grade solid

XXXX expect capital cash offset are which dominated sell need X-year will pending PSEG's from we PSEG's per reaffirming year considerable base $X.XX full the PTC closing, operating we investments without year. over enhanced to later Power's equity we In continued PSE&G's plan support generation, of of of and spending our ongoing by the to with that balance ahead, distribution regulated the this $X.XX cash new case CapEx higher issue flow growth expense share, guidance rate by of interest combined rate await earnings non-GAAP nuclear regulated reflects resolution the execution from as depreciation or build will Looking visibility that PSEG assets. XXXX

annual of concludes non-GAAP PTC. That to through forecast we compound XXXX, We supported programs investment session. capital reaffirming remarks the our begin formal nuclear are X% ready long-term new earnings X% and are by in the operating our also question-and-answer to growth our and

Operator

[Operator Instructions].

from The is Barclays. first question Nick Campanella with

Nicholas Campanella

should thanks nuclear power kind to the direct in being we just guess, on timing could energy know between how with contribute it the around for announcement. to any EPS I of when of policies. -- comment economic then achieved? the around So were facilities. potential the of And you if just just nexus all the kind Can then development think potential sales about about context and opportunities be -- And your like you that talked kind I

know looking of just points what for state not? this? So whether a looking are is or from more reality this moving forward be with is should investors to there data you're the something that becoming that the before Or for

Ralph LaRossa

Yes, Nick.

things have about think I looking see to other that continuation centers following here kind a Jersey that to it. not as or governor state's So And to he's us of in New look, just AI in of I place. this the for IT the is and the us we think the line and setting infrastructure bottom has data Jaff been desire very attract assets his clear policy,

like timing factors, got You've I and their number the of Now different something think, some the a right? of timing. by driven of data centers this, is hyperscale

So on be And some to things I to them. don't to want that may really I want -- on. don't or talk for governor don't want working forming the not he I may

So initiatives timing -- follow from would I really standpoint, and to timing I think announcements And effort. overall policy we're support. the a around this state's just here

Nicholas Campanella

extent provide that. on remarks when I I really that refreshed would maybe then appreciate of the in that post giving that said update progresses. of data kind an center a opportunity, would the outlook, that? dependent Or be your guess could in would that you're financial be kind But be you guess of and kind is And it case I also, also how the rate that 'XX later you would included fall. be? something Okay. think I the that to in beyond.

Ralph LaRossa

roll Yes. kind different No, the think of pieces as later forward I those are couple a right? forward in there, we'll every year. of year So we roll really

other done plan. we'll start CapEx upon Power to out that, as to on I terms to of PTC I that still upside, the is specific, anything think our optimize in continue the attention data earnings we're else at But and is it. plant. that opportunities And understand something the we in have center our company's plan, or what so right our we we'll around roll be roll year going look transparent any agree a all be we'll It the change forward, hydrogen do beginning is about based we We'll year. to with at as like then it earnings we of out it. as very not and PPAs, the or But whether ourselves centers is data floor. end stream. small soon But project and it part of this next the items on it. now, some

Operator

from question Our is JPMorgan. Tonet with of the Jeremy next line

Jeremy Tonet

question Just here. wanted to touch center base on non-data a

with the centers equation an pegs outsized And come it? how that do You've been having see roll overall? regional into have the changing transmission in needs closely And for transmission do impact, following the you see state how data you system offshore. now

Ralph LaRossa

a I process PJM my they footprint. RTEP Jeremy, think the the continue advice it's be keep the across grid very to opportunities really the close of there'll think -- topology on is I eye PJM Yes, reevaluate to as transmission

the Susquahina a You was power a happened simple That our very ] it power megawatts got at out grid. to line. Talend what be just least or Roseland plant example. -- with so as won't of at the at connected take power That XXX into look of to [ flowing plant

in And popping you've so will an simple locations. topology in centers very impact the up have different Then got that term. data on a

that processing, solutions. we're smaller ash of have come of We our but of have number utility not computing into type a the requests magnitude that hyperscale,

impact at solutions and it, And to encourage so comes for the take together, need X you will us. each offshore it process. of and to I where the that modifications an of have will those for is grid, place wind would one a through it's but be be generation a TBD additional the of and RTEP all for will all look there

Jeremy Tonet

helpful. And structuring tariffs at doesn't That's thinking in ratepayers. way just picture about that other a impact in Got large it. the then

provide bear Just in payers you developed wondering I thoughts a rate guess, making if burden. this that other more on other is such sure don't that, way any could

Ralph LaRossa

Yes.

that there's that charges, ratepayers supplied be through comes different wouldn't it's infrastructure will in the that that's additional the way agreements paths, on generation behind-the-meter on PGM to way we the handled any -- burdened cost and look, with be is additional those market a infrastructure new a and there's the there are than if held harmless So it into so solution, grid other be if they today. interconnection has that be won't allocations

determine that care individual And that's a extensions. or centers solution meter New requirements that new a how tariff haven't loads the state changes guess look I front take business to of Jersey development those it. it popping to seen will think taken each standpoint in we of. And in think So and I the for are want handle up. every state different for has from transparent very state And any a at I and there's But tariffs. an way fair to economic data

Operator

Our Durgesh with Chopra Evercore from next comes question ISI.

Durgesh Chopra

Just, what forever. on the updates been then And waiting are financial Dan, from please? your on guidance -- implications coming see any that PTC maybe any guidance you it seems like from just on plan, the like it just IRS, that nuclear we've

Daniel Cregg

Durgesh, wish I a spur come know answer some better to a guidance had that been wait that to I I try approaches know of to continue but know Yes. you, for out. began to of to we But January you I different PTC host treasury treasury. out for there's information to X. come that

in So that it. continue definition gross we is it definition thought is, all the I as think are to receipts. of the And most important about we've

more we're what that's else. anything so And waiting for than

think treasury outcomes about looks come day in more it. of the uncertainty. potential date to we that -- trying forward, about like fine position an different forthcoming. bit to do 'XX ourselves we're as we're would to can don't is date And what and there, against I we as finding from And have ideally goes by I've not one have estimated doing don't but prefer continue we're I we a backdrop could think you. out we've a every to that is for try and we're heard 'XX. what I been moving little have think that doing what I

think same I the just we're think boat yes, in So waiting. I we're here

Durgesh Chopra

opportunity Is way your scenarios different fair baked guidance? planning of kind risk you're like sounds that a and that put XXXX you've It to of and it, color. kind into Dan. that appreciate I

Daniel Cregg

that's think exactly I Yes, Yes. right.

Durgesh Chopra

share, higher in now. then of chart funding this it nice your And sheet I you maybe just to it's all whether speaking, it's balance and -- energy at capacity on It know this Okay. showed it's very think used utility, terms bit that side, efficiency, opportunity. was or dated the more you the whether CapEx Nuke had transmission, whether opportunity, light. going I related transmission or capital that's generally But have be you the to a

December, over raised, years. can give was CapEx of Just in -- right, and the plan XX% sense X recently a you prior the us

sheet issuing So to maybe much way any the if of can more capital a that. us a give balance without do there's you sense can equity, how cover

Daniel Cregg

opposite debt. increase has investments going whatever different capital capital Yes. on did about program closer see recoverable off life, energy of XX that life XX to upon recoverable I talked you that debt to life, more a a efficiency think the of in life. to ends spectrum, things it's And FFO FFO implications you you our is referenced, to the exactly And we've to and and that the when that what of one there to the come depending the infrastructure-oriented amortizable call want longer kind depreciable have years of of it, our are

EE so more you because benefits. side the side, quicker significant way. to in FFO extent going the ground, fairly that on that when investments, capital power debt that's your I your you see to the or it totally on That's in could you're an point, it then to of look to those particular be And steel agree impact it's gas be something see you're or on a the at with your whether it's to side. And comment of going transmission FFO less back positive much would a lot cash to but light, electric coming other

that around for and is Moody's those are threshold So S&P. we're are mid-teens upon elements the the about depending we our XX, talking where whether you're XX, move if in current

you some more So that move the I I us as of we've a that a it's little going the friendly in it's think late, investment. And think increase not direction. saw bit it on nature room coming for of of to got in EE was but to from depend there, more credit

Operator

with next Pourreza of from question Our Guggenheim. is the Shar line

Konstantin Lednev

Shar. in for more regulators? bit other one-off Jersey? you a New bit all perspective, a kind on And And at for a here centers is opportunity a of forms, Constantine behind at From of meter is as actually that see dependence. is forms? regulatory data It's little Or commentary as kind for it maybe you you becoming the scalable appreciate grid Maybe do of addressed Or nuclear it? I that in the really potential concern nuance. opportunity. a look your getting mentioned, there's of the

Ralph LaRossa

grid grid the think, move centers, Look, make Yes. sure we -- as is continue direction, to that in And have the -- that. backwards not being is The go data policymakers built it's correctly. I'll just dependence the on board. out Constantine, I start aware to seeing that and We're be system electrification across right?

there's multiple and customers at conversations FERC. take plenty it's being that think in keep to fronts. will state. the avenues those to burden place that each to minimum. handled handle I individual being It's It But handled be a of for

So that. no offense what's on about

On give because to on just look Dan team that I'm commercial his up side, at scalable you doing that does of folks of give team can to detail there and front. different the about job And it. looking some you I'll great work can ways talking a lot are more multiple it -- there's the to that multiple going tee a is Dan's at it. solutions he

Daniel Cregg

to think the it do definition, asking, of something it exactly I great the to you're going how behind meter, you're by Yes. it's Constantine, question, going I but think if about -- scale. do nature if you're a try at that to

the that move something you're a than with not was wouldn't have scale that appear And other to think that into immediately. scale of you growth so I think center fact scale of and to not data going that situation natural I

that you what And come of would so agreed be would time. from see have scale in over something to we likely it's would that seen, be more

right the would going -- I I that [indiscernible]. your all that grow to definition but think you so think want be meaning it's meets up as set And of through if you the to step that at answer you'd if time, yes, scalable,

Ralph LaRossa

And great spot. sit reminder, only we're the add said, a we site it. Dan out where I merchant I'd what Constantine, that point on geographically the to just thing units is a to But X also only has everyone,

different the So back up the ability a is is little scale very to the to ability there different. bit supply also and

down of excited the really whatever about because be those we're So road opportunities that. might

Konstantin Lednev

to PTC the as are the of levels supply which That's broadly continued of power north and or be core well recontract XX, capacity start abundantly the those become the more those revenues? the as Do earlier and do you maybe just you power as prices And a bit guidance input. you realizing kind accretive metrics for we markets to look the of demand that about. now kind kind talked of little PTCs kind to And of that plan and planning in update XX investment credit strip, clear. or

Daniel Cregg

Yes.

in I us locked say period be that how and for and are looking we place about things to for it. change what we is a of to think seeing, there's if something are in time a able at

logical time. a something. seen to us a that's think long, for do markets long these for you've time Constantine, I

know they and up, You come that they cyclical. down they're come

there it And is to trying the count extent that We're just And of so until what to embedded real. keep not speak about but some be opportunities grounded. have is it, things upside more it to can they kind know higher to try they and in out them an predictable be and come to are our on. instant, is intention when investors let

continue will go And so you from probably see that you that as us. my sense is forward to

Ralph LaRossa

necessarily PJM is entire And and of PJM just the a liquid top marketplace. visible the reflective not Constantine, West reminder, highly

those aren't on So numbers dead everybody. for

Operator

The Carly of next the is from question Sachs. with Goldman line Davenport

Carly Davenport

we just little talk the sort much of outage. about order of the scope doing get a Creek some mentioned shift kind bit on getting XXXX. you Maybe be left what's you fuel as of you're outage, the make Hope of and there will in cycle to that with the that Could done work to initial how on the shift just

Ralph LaRossa

required. we're that it's insulation of Carly, on and based the upgrade in which rewind basically are on. really of out a doing tower, There's got little small, part puzzle generator being megawatts going we're that cleaning of X additional -- There's the a on conditions doing -- very -- we're mean now. work provides of the piece that's about helps lot going we've upon us this us work pieces, in but that's outage, done there. some old I capability cooling rates an the on that -- It's engineering that's some weather a Yes. small on

the unit change to the going making that of down be that lots in So anticipation work to optimize road. itself we're of fuel

to investments change then of fuel So over we'll Hope cycle. the for the be couple cycles, next made it's Creek at the for -- ultimate will and the ready be the XX-month

Carly Davenport

Got it.

to Creek bit helpful. That's then that Great. the you beginning Okay. you and related talked some And respond then this storm mentioned the the at Hope outage O&M earlier higher just you activity a to a maybe of bit had to year.

those Just mind? moving in trend year pieces for last versus sort some early full the of any thoughts on year O&M where of could with

Daniel Cregg

move driven. fairly and were weather it We winter, about to winter, bit it little a much not was we had wet as precipitation a temperature-driven the and may see the exactly it It's mild Carly, bit were higher. funny. storms really a that but some as a was they talked earlier remarks, little in we Yes.

of so Creek time And that costs little a have higher we as outage, XXX% a bit owned. did. some Any Hope drove it's

bit a there. little bigger of a there's impact So

we years, some won't. that, some have so And years we'll

So one contributors through But you'll on O&M. to the were power the of the on side. see come that quarter's really, impact storms first the

Operator

Scotiabank. line Our with of next the question Andrew Weisel is from

Andrew Weisel

the on Appreciate Maybe to obligations? words, the [indiscernible] of how little much one not a to capacity dedicated state nukes. be like how bit details pin a up could customer? committed that's programs the just or size have you kind other In new down -- you many do other committed can opportunity, actually megawatts to nuclear the

Ralph LaRossa

hyperscalers for thinking what Yes, at Talend Andrew, I think, look of as look, units you are placeholder happened can at size at about. a

don't 'XX, data to be interact and may reached. with data reminder, before that I the any kind be ends. discussions in of what that of Just we'll But of I of at see any when a And these 'XX flowing how May see site. power plan PTCs with and say agreements have expect the of on center to 'XX don't program a IRA are sooner down that then a May center rules the ends being state of in So built We folks than we're something that. kind May right? -- before to our say

Andrew Weisel

But Okay. your expectation available? is the entire portfolio is

Ralph LaRossa

Yes.

portfolio be that again, a could entire the into of think bunch I long-term contracts. available scenarios. for think different And I falls

Daniel Cregg

we'll keep Yes, you I restriction and anything think that's there's continue work a don't posted. forward to and

Andrew Weisel

Okay. Great.

and the to much side EEX that. efficiency energy for program of is calls talk second, just than is bigger key of this to more some incremental you Can of those utility, billion or wanted more maybe dynamics program savings each BPU hour spending, first the of December at all pushback so are well from stakeholders? the you And filed you expensive? Then pivoting the Or billion. clarify much seeing any Just of importantly, $X supported? understood about why the in to $X.X kilowatt

Ralph LaRossa

that way goes megawatt units mean into Yes, it's of I was operations. you're simple the moving changing to up, you're which bulbs, light now Andrew, as kind when started changes and saved effort going and thermostat dollar right? the to from upgrading we and why per commercial industrial back HVAC first

just different very standpoint. that's megawatt per So safe a dollar hour from

far As was triennial. the BPU's the of this all as pushback, part

far a been on And be based doing submitted So which second, a think there'll total about per historic surprise. The question will upon Utilities lot performance, be of based and really of to forward. Public of not spend that how lot Board we'll arguments the from a be a by they the the of standpoint, the what just needs are like was good. has type go. work I was upon identified our then would don't going really cost

Daniel Cregg

they the this not program philosophy think target happen things to approaching viewed that that would what this credit, within to also otherwise. BPU I try in wanted take they through Andrew, they a did, Yes. to their

And are a for that expand target in so in great this would to off a to were is that going examples, are happen bulbs to an what that, example light happen. is program too, condescence the the But of otherwise try other things shelf. of given not anyway kind

I a bit, little a think, may cost expands reach the that, to but done. little a them get better more to so it bit moves place, And

Operator

Our next Research. with Steve Fleishman Wolfe question is from the line of

Steven Fleishman

another Sorry, question. nuclear

So X obviously, there's potentially just let's centers the hydrogen, there. the -- I to last, months, we be talked port say, to now. data And next plants like an around X, offshore think hypothetically wind then about this supposed

of focus Just kind have to things and of you data all can now list. should is top there the we think of you as about one or these to things centers do kind

Ralph LaRossa

Steve. No,

it's So question. a great

So pretty work Economic port I up was built. a can there, work has close. the that I there. Development a is we yet, of if darn they've New done ton pull a of lot and know we're down the Authority done there Jersey ship but mean don't

activities to ton space lease wind they a completed. been of some some developers. there's So the to offshore And of started

you it might land pretty well. and state And there's put center available, right? going so of for. out got think considering I is, data and could is from looking big You've the individual developers upon size criteria to standpoint, could each additional a that's a what a figure Then you put how question that that that's there, all based and they design be they're

right? see And come something an the makes Or finally off You again, go and IRA bit from little some might property, to could out implementation. sense that there, a that you the what there? hydrogen have it a goes electrolyzer rules we depends maybe put it unit upon or all

all about the it as optimization strategy. of an So above we're and thinking

doing that coming and those best policy. that's Just to us for units off in the that's state's with aligned figure out what the completely way way the to electricity is -- use a

at the do So is you become. just individual state It's policy could and it big of a any the those what all. how matter of one opportunities

Daniel Cregg

meet hydrogen a limitations front, just the hydrogen. hourly and to upgrade continue on on an An as extent would Steve, that both there matching additionality the reminder, those

don't the limitations on have we and think or we there to having what do down do other. I So ability see good pick the to feel about pretty one

Steven Fleishman

how I this And and like. that's just guess Jersey then just overall the lot something kind of New with other I in that delayed be other to nuclear? focus so this offshore of are -- -- last can a that you aspect about the just the thinking standpoint is part behind been alignment And guess do meter of to wind just in reliability the Okay. on from able at state and the

Ralph LaRossa

Yes.

question we a unit ways, power it's as other Steve, But in a of I if megawatts. right, and the this, did whole that. those rebuild to the gave of the settings, stations comes set but we've New specific it's states, PJM to right? apologize just along and And more and XXXX So specific that I we switching that multiple what that as blackout a in flows it say So substations. infrastructure repeat, in will when Sandy Jersey, us transmission not bunch but different opportunity rebuilt

So we're this. for prepared well

development good as I on is I might some think for Jersey hat a second, and have. we're quite uniquely place. really here New in others think and aren't the a I've got tight economic my prepared but as margins

solution trying states what's the doing think that partnership I one-off a So the in state we're out to plans. figure looking best and it this the for of and at we're

we So feel pretty good.

Operator

from of Our line next question is Levine with the Ryan Citi.

Ryan Levine

Had a, more on or X I guess, nuclear. X

that duration to the of may of terms contracts your willing sign. In counterparties be

extent PJM, that mentioned your there how at think constraints any I And you share it? that outlook? could line term to to long play in there the you into does is term, look long comments, around longer-term you color in is the any of serve time then as investment how transmission

Daniel Cregg

Ryan. Yes,

going a significant center come is data and time. build a and to very, investment, be a be the answer for I in question think if on it's to very around going is simple going to first that's the long somebody

give I to things, the long being long think as I side transmission system Ralph, the really, and for thought of to you, term the what So comfortably years I we the region. through right on out transmission years happen years we're of specific don't ago as much is prepared XX about just within as number flows think term. And we about ago. think, I do have response a pretty need whatever built I went have given but think gave XX

those, of I shape. think, both So in good pretty are

Ryan Levine

state, any make legislation extent initiatives the the attract the load other on attract that to this follow to questioning. is there base may line the that opportunities territory? an customer that of to more stakeholders there then And keeping to are last To to it on policy for you're eye service this palatable maybe

Ralph LaRossa

Yes. No.

think of new to or EDA again, I'm state at I require tools things has folks, other expand different solutions confident hat initiatives for start put to -- attract to legislative of believe for seen There opportunities my out just said up number I've believe on, I may I has has. a move Jersey the There it the to and anything but businesses. businesses opportunity So the don't or some here. the additional changes. that state to plenty going that to up I'm speed be that would the down New could tools And is pretty to reach

Operator

next Our with the Travis Miller questions are from line of Morningstar.

Travis Miller

nuclear Since jump I another a to in with have apologize I'll I suppose don't one question. for here.

look for you'd something Just a with? thinking the something I'm thinking Is Or make to take would at high might risk? that nonperformance you're or facility. mainly, be a essentially about very going that that. they is a what like co-located level offtaker comfortable like And a on the about got something contract of who risk there perhaps

Ralph LaRossa

the too discussions. be anything details any commodity back would to hydrogen to Travis, to say into to like want that. the it in commodity -- I talk about It's about question you for us bunch though, we're and a answered of not tell position the I We this don't to talking times of situation. way we're not you, get any opportunities. I'll tie soon a risk we've would simply risk

see is A point know up the And to pick So they're don't to you centers I then and Dan, don't or I or as put in space out with what data at there want from if it what And different. this can that we do in we add? anything at that figure that meter and going else electrolyzers might basically look a folks electricity. happen

Daniel Cregg

of redundancy No. only thing you've the things say with got you ability deal is practical would mean and a site, a from a perspective, X-unit about think if to I like I that. just lot the

start to. Ts you of across come position But there. contractual to worked obviously, think the And agreement of whatever going are Cs be I we from breadth a entire strength have so through and

Travis Miller

or second of other depend of put on wind it there. fair. bids is proposals in then much or question on Okay. you some in, of Perfect. bids what offshore one any coming your and proposed great. That's That's And round a How the those it. does transmission projects in

Ralph LaRossa

Yes.

Travis, So I think answers X there's there.

happened an First, first require for farms. wires the does in to It's basically interest coming very the use where [indiscernible] what prebuild solicitation pipes in wind a the or PBI, from It's not that. analogy. the coming similar opportunity offshore --

So that really piece dependent. not is

clearly next have for how whole. and dependent a a like is big yet. upon solicitation gets we that not -- size scope wind as what that think state opportunity look of scope And might -- the that seen I what offshore of the the

Travis Miller

process? through through And would be that Jersey PJM Okay. the or process New

Ralph LaRossa

would initiated the It approach a PJM from New agreement by state process be Jersey.

them ask on So the the for New up -- pick behalf Jersey phone of the state. to PJM would run process and call

Operator

question last is with Glenrock Our Associates. line from Patterson Paul of

Paul Patterson

So and if think respect sort it of on wondering few just how weeks. to up coming the upcoming the that's agenda in transmission -- -- might might be you next thoughts affect the you follow-up I what was coming Any transmission there out might what could with guys? stuff. you your with about thoughts here be to policy FERC how

Ralph LaRossa

No.

think I or X there. there's items are look, that -- X

that involved heavily folks in our so some other are wires have in We transmission many organization, ones.

abreast of staying we're it. So

and monitoring it And remained we're there, some than swings expect share. has have FERC don't right the in that. closely wouldn't the I but under outcomes I add more to now, Paul, think current much I balanced wild

Paul Patterson

policy that seeing if big that just different that -- grid another your push might-- next might or years? wondering few is see -- in And on just we're enhancing from officials operations how the guys you technologies. impact how if your you then And Okay. see you

Ralph LaRossa

Yes.

that really of has focused. enhancing grid some So been

there I have that. the of piloted we've the And some was installed. it and of upgrades people York some at of about think article on some Times conductors that looked a that New of

out our upon and we've to upgrades. As get front for becomes do capacity think whether to or we just run transmission We've system, the But we've ability also the cost the we of want upgrades. I additional not done need. a based lot benefit wouldn't consumer some of it talked would what about, built into that additional a

as and move monitor we'll tool PJM something have solve will again, something it's So to how want it's they gaps with in electrification. some created that of determinations get that here to forward some we upon the chest their might make

Operator

are There back questions floor closing And for I'd like to turn no time. the to comments. LaRossa further this Mr. at

Ralph LaRossa

thank to want look later these confidence we together I welcome with forward really to support, and we simply and for continued most getting at you all in you all just your questions, of May. AGA

see So and investors. again, our thank all our And we'll you you Take to care. to California. to customers our in employees,

Operator

Ladies this today's concludes and gentlemen, teleconference.

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

Public Service Enterprise (PEG) 30 Apr 242024 Q1 Earnings call transcript