PEG - Earnings call transcript Q2 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'd like to welcome everyone to today's conference, Public Service Enterprise Group's Second Quarter 2024 Earnings Conference Call and Webcast. [Operator Instructions] As a reminder, this conference is being recorded today, July 30, 2024, and will be available for replay as 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. Carlota, please go ahead.

Carlotta Chan

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

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

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

Ralph LaRossa

to had and per for morning gains review per net benefited Carlotta. share Good quarter PSEG's Thank the results quarter first half income quarter for to income of results. $X.XX those second respectively. to half and compares of you, GAAP for reported the and net share mark-to-market This share. share first of $X.XX second XXXX The XXXX XXXX, the XXXX, reflected of $X.XX PSEG everyone, joining per higher bringing to us earnings per $X.XX for earnings. second of thanks that

for second and Slide respectively. earnings quarter were results in year-to-date $X.XX for of on second of $X.XX half for This are year. of webcast X quarter $X.XX share operating the and and for of $X.XX X per non-GAAP per Our first and slides. half the and operating per quarter share the the to summarized the XXXX first per the Non-GAAP earnings periods share share XXXX, compares

call, in which on reflect detailed reminder, case included full are Dan review results and the this increase the months realization later the concentrated provide non-GAAP shown XXXX note resolution to the a will attachments I with most the financial results expectations XXXX our want earnings but with & items rate that exclude As the the X, year, for in are fourth X distribution a our of Power release. quarter. of margins PSEG first and Others expectations. the year of These later in gross in track anticipated of the PSE&G's X

operations to second Turning the quarter. for

June experienced month experienced and out be early we has Jersey one the wave XXXX extended what New of made may last turn hottest records. summers. in heat our second warmest June to the The

system distribution the performed well, exceptionally load and transmission daily electric requirements. meeting Our

employees and in our customer addition, electric restored a In calls provided average handling repairs. PSE&G bringing period responded online outstanding and heat-related XXXX, back to XX in storms by power to air them for compared double in the and elevated the hours, to same volume service severe under conditioning responding hours. affected care, volume to the conditioning while service on X customer call coal responding customers to the incidents, air request

but hours. in a the a of quarter. with which units, resulted also our the terawatt XX Nuclear operated keeping which for factor Creek Our This first electric schedule, full on Hope X.X from of Salem with in in second XX.X% to year XX% Hope and inspections share required Creek to track at impact lowered XX%, forecast in XX systems resulted quarter earthquake the capacity withstood over on site factor us capacity Station generation the gas April. fleet's

period covering energy approximately starting XXXX, deferred Board our of the New XXXX May Utilities, $XXX the previously of recovery efficiency COVID-XX energy June, the a of approved to in Jersey activity. of the regulatory BPU, million, June of Public BPU clean or And December of commitment an X-month in through from our X-year additional XXXX. XXXX. In PSE&G's a Switching extension period future, approved July costs program of over

we can submitted with be in update various We actual resolve anticipate case resolved efficiency participate rate discussions a are confidential cases our to both to as continue billion parties funding. We ongoing case the recently and both later parallel, year. distribution, to These $X.X in year. filing that full the energy discussions as to final base this well rate with for data base the test

capital As spending. electric distribution rate is recover to case and a gas combined the reminder, filing primarily incremental

growth increase period. electric compounded We gas typical of revenue a less residential combined the than XX% have customers or and X%, with a X-year increase of proposed an and over seeing X% overall proposed

jurisdictions, As be a customer to lowest compare a to dual rate approximately our continue PSE&G regional we priority, peers. our a the base. and with gas total of bill utility XX% favorably with said, have lower-than-average covers continues customers and affordability regulatory single-state the electric this filing region. distribution bill That in

reduction cost since Additionally, our further customer filed another third this implement the will to which XXXX, this PSE&G affordability coming recently winter. with January gas help October, supply BPU

has this up billion which million still our to to and to on rate our $XX $XX on X% end the starting million XXXX the These base $XX rate capital through year. program, from of energy our the to of total XXXX over the replacement billion period, a year. XXXX annual remain prior schedule captured We for into for base regulated projections on through of on growth X billion over X.X% X-year was Moving over completion XX% of of are by $XX billion, plan year-end investments compound award-winning smart XXXX. to through infrastructure planned AMI $XX.X the billion X.X in focused capital rate PSEG's programs. our execute The placed and investments. proficiency meters track portion service PSE&G represents

interconnection those system XXXX requests increase will investment or combined expected studies activity, infrastructure continue to winner transmission business in experienced lines, to summer, regulated with compared postponed We winners needs that new XXXX. opportunities BPU growth during with this regulated potential Along of future. Switching expectations the on evaluates state would the transmission in months, customers the increased process for charging allocation generation, X for Transmission reflects their support drive feasibility BPU it to second which PSE&G has the also X which center approach and to vehicle the XXXX transmission pursue cost December. our agreement has loan across service this which FERC is while growth. investment area to Window reevaluate an and need data potential impact in planned data procure and incremental half PJM. load from this and future offshore Expansion second scheduled its announce planning, wind this PJM long-term SAA prebuilt offshore are by solicitations timing and month, increased of may solicitation that wind month, throughout the of horizon PJM Last which growth be for the solicitation PSE&G expects load coming earlier XXXX electric BPU opened influenced [indiscernible]. The the growth on center higher the the forecast Regional second XXXX and electrification a activity been Plan to

this evaluating opportunities the to bid September. Window We X for solicitation potential are

select for opened expected, the a Now a Authority grid. the the to for their Power Island electric Hudson process proposal manager request as Long to operate and moment, crossing

also to end their RFP [indiscernible] is contract power make explore potential centers and pursuant are producers. for supply electricity proposals Power, We agreement to energy and hydrogen power the supply PSEG to our the long-term services data users from operating to we continuing such nuclear and process, [indiscernible] of opportunities next existing through runs selections expected into sale year. At with XXXX. of intend Our early agreements submit facilities, large to as

price reaffirming our non-GAAP plans growth tax are of long-term Salem based include through or credits combined XXXX. guidance production on qualify are the XXX which growth with these we under thermal credit, rules. Today, stability to tax units the could operating our addition, multiple PTC, earnings upgrades megawatts pursuing output units and the that at of current potentially provides for efficiency that nuclear XXXX, to is up In by and through we for that increase also X% revenue co-owned X% threshold

this nuclear help to for business the a to We continue the to utility fund cash and growth from differentiating issue equity factor free the without us. assets, continues to deploy need sell new or be the

balance sheet results. $XX.X billion program consistent summarizing XXXX, the first the $XX through and opportunity months to execution growth. year, provides investment our X capital million execution for solid the with our of the our Importantly, expected solid of In driving and supports sustainable dividend is

case have We quarter, pending are X filings the later EEX and past the working settled in resolve regulatory we this to rate year. base proceedings our in

to lower thank best-in-class while on customer now the not to do. greenhouse We system all remarks. our Their and this detail, capital financial for These they maintain for we the bills. call will X-year through your prepare transportation, operating year. I'll us in questions after least, tireless but results are homes gas Last statistics investment for workplaces, be infrastructure will want great and outlook have of electrification efforts to modernization to energy service, greater seen over advancing and and heat also to our turn reducing discuss have plan helping our help I challenging initiatives. wave Dan and his especially our emissions also efficiency investments focused employees certainly customer and helped available

Daniel Cregg

you, Thank morning, everybody. Great. Good Ralph.

during due and $X.XX and investment quarter. corrective second per $X.XX and and in $X.XX of by $X.XX investments, and first to recovery $X.XX $X.XX in Depreciation Program for second weather-related or PSE&G which to share the earlier quarter. from due Energy operating share compared a costs. Incentive by and share non-GAAP by take and X pension earlier, mentioned were and for gas segment with in in per interest increased in share share per non-GAAP drivers share higher. to rate will second interest quarter in per we resulted XXXX. of to detail quarter depreciation to $X.XX and the comparison Non-GAAP added net also per per major for OPEB-related per as and the and X-month growth for earnings $X.XX case share and per timing continued growth our and for investment to this activity non-GAAP periods per share compared to pending recovery base the and margin $X.XX compared of earnings [indiscernible] to rate Conservation annual share from O&M final offset operating safety income quarter-over-quarter inspections higher credits, higher by Efficiency higher operating half well the XXXX storm by in electric regulated unfavorable XXXX, main $X.XX of to that June second quarter the to referred were CIP, $X.XX income second net per led to per XXXX, Energy of in to awaiting of quarter Distribution to as combined for respectively, and XXXX, share, regulatory, and maintenance due of quarter the per margin had increased greater of through business. Starting to share higher O&M transmission due non-GAAP the Ralph wave with reported share investment-related distribution $X.XX the XXXX. Slides share declined $X.XX second margin resulting $X.XX share true-up. Ralph while cessation our XXXX in in $X.XX per results OPEB per heat activities. Compared warmer share XXXX, increased second the income Other for earnings safety quarter income PSEG Strong of reflecting $X.XX including share contribution of to PSE&G interest costs XXXX, by of As expense of XXXX per net quarter costs second operating X weather, higher the quarter the meter changes rate business XXXX. that quarter our the per compared customer the a The reported growth II compares expense. Lower the share revenue you expense, share and the earnings both higher per of by expense compared in year which O&M, ended XXXX net per in experienced XXXX.

rate, $X.XX XX% warmer impact quarter, net the in share of the which Lastly, the XX% tax timing recorded than annual had of humidity second other zero taxes nets second temperature year, over a a quarter index in as taxes full the through to per unfavorable effective compared weather and warmer measured and the quarter XXXX. XXXX. Summer was by normal to than of an

June back second fact, quarter In to records was the heat mostly in going that our due XXXX the wave. second XX of warmest years, quarter

the Efficiency As and ongoing continued margin a which reminder, adoption upgrades EV include weather and facilities, sales T&D These lean other the the infrastructure to advancement and during negative the replacements the invested the our in which modernization its $XXX spending Incentive on investments CIP EE, and approximately million by on grow billion. mechanism, second over of capital while infrastructure positive our to plan impact XXXX variances, or margin of utility make-ready infrastructure regulated margins customers, and last broadly past limits Program the energy across initiatives. continued minimal impact variations and year. On capital helping weather spend have It's or execute installation each gas number the PSE&G Energy smart on electric of of remain spending, and of we promote PSE&G our approximately because under program. gas on focused the driver electric CIP decarbonization is The and on of mechanism, quarter, X% program, to track mile infrastructure. investment meter gas $X.X Conservation replacement

We XXXX. Energy high The on Efficiency are billion includes would end regulated II June plan of to plan to based January $XX the framework. 'XX the from of X-year billion investment December BPU's reaffirming XXXX filing $X.X $XX from that made capital EE commitments CEF enable billion XXXX to this 'XX our

BPU resolved said As proceeding Ralph expected this this at earlier, to year. is be the later

Power to PSEG & Moving Other.

the partially $X.XX to nuclear second of net quarter nuclear, the Non-GAAP the margin the to driven January earnings $X.XX XXXX. per XXXX, $X.XX the & $X.XX the per energy quarter For XXXX. the for revenue. second the of effect earnings per operating per Power income took $X.XX quarter were in X, compared by PTC anticipated and impact of outage XXXX, of operating Hope the share of Other net including that second by quarter of share for compared XXXX, In share share PSEG quarter of Creek for generation offset second reported of XXXX, per by second net to capacity reduction rose due non-GAAP share,

over rate a share $X.XX quarter mostly quarter quarter at first share, tax O&M As shape $X.XX by XXXX. XXXX, the nuclear our the were increase remainder realized refueling second through unfavorable primarily the of as in quarter, move year debt a of the owned anticipate XXXX, there price increased will of for higher $X.XX margin effective when hedges. annual to at most gross by Other rates, based the and second We expense the quarterly the a per the be results over taxes in incremental the year. we reminder, compared XXXX. our realizing XXXX's will unfavorable was gross XXX% XXXX use of upon This reflecting reflecting the of balance in in from of in scheduled the step-up per during the to the margin shape half reverse of hedge the differs Creek higher and unit. Interest our the driven year, that of specifically last Hope the fourth Power most underlying of PSEG

our Creek recent Hope XX.X% at was refueling on sale and impacted the On XXXX. Touching totaled hours from for the operated performance X which operating of in and but terawatt the first high by terawatt earlier for XXXX, the compared generation quarter XX.X the of ran hours, half nuclear approximately XX.X%. Nuclear X side, the benefited capacity in capacity financing terawatt factor at half the of second to a of which produced factor activity. at first at some fleet the XX.X% X.X quarter year also XXXX, units, hours during period

total of on had million cash the liquidity available $XXX hand. of June, billion, including of end $X.X As of PSEG

the of $XXX April, million PSEG in off issuance in in billion a notes million the notes PSEG of XXX-day of March, Following senior $X.XX during quarter, and loan PSEG senior of second paid June. $XXX term

to consisted end interest a term has of PSEG debt. at of from we in in XXXX, swapped of redemption to entirety of swaps, our June, mitigate the had which variable end billion minimal the out loan March, rate June the fixed maturing been rate a the the With term PSEG's rates. At fluctuations debt variable rate rate given March a $X.XX loan variable

in Moody's from And this change for positive. ratings leverage the PSEG to future and with On consistent front, stable Power's credit our rating. updated targeted June, outlook plans our is credit

reflects of of later resolution higher We solid Power. In continue a year. which year distribution $X.XX per pending and reaffirming share, PSEG closing, base continued non-GAAP PSEG's regulated to rate maintain interest rate investments, BaaX offset earnings rating case $X.XX by investment-grade as guidance we we growth at operating await our this from depreciation ongoing are full XXXX to

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

Operator

Instructions] Jefferies. [Operator from [indiscernible] first The question with is

Unknown Analyst

A guys of questions what bunch have said. here, you

First think a economic you bringing to center benefit as how jobs to criteria the New community about on element co-located contribute that you're that's you buzz like And and your the see here. stakeholders little elaborate Jersey you opportunity these the about the to would is of what days. would Can talking a do today key data off, just about bit local here? Obviously, other opportunities? seeing

of share? perhaps today for numbers on elaborate that? kind And kind today? how then you New in would opportunities you can data would quantifiable related, that care centers to you or Jersey see So numbers that you commitment soft separately, outside of characterize co-located demand Any of

Ralph LaRossa

with going to that Yes. a to of that and would I co-located New Development and couple answer Jersey a benefits, Thanks of welcome Look, your data things That's it's my choose I'm not again, center. a say is for And necessarily that question to really has in and first back. and that for purely it Economic up looking that, you. locate running great. co-located, the center. It's companies fact their to to it's here to and region data signal it's go going it's are provide here that hyperscale to clear is the just the infrastructure Jersey thrive. a ready AI a New in that businesses couple

be here would the but work that would Specific which of your trickle-down the of, activities, New from. get you have obviously say, benefit Jersey created. construction a site, there'll IBWs opportunities wire lot by least not driven the in So be to I that would

over lot construction onetime. But from that grow opportunities heard you've done do happen are several co-located years. They It's ramp So as a around lot the AI up the be. opportunities others, centers. these onetime. activities. one that for there's in a that of take or month. of data And a not one there's edge They over center computing would place all data then local like other from they infrastructure It's hyperscale

of to construction. think that's we is activity to a seeing Specifically PSE&G, about a utility folks some deposit bit quite place. at our when every -- count only things have bit utility would is a a what is taking for a and they are little as commitment We commitment different

utility And where going, has that brownfield capacity based data several that be they required the support about come is to at is not -- Some to in one, it's just and the little some the different a it into standpoint But commitment moving other hundred would New the engineering or from we are with already need be on do you on that say more you greenfield that And say it. existing sizes are power way are all is a are to different that when the what get give I a engineering infrastructure the run would scenario location lead different an shapes, we're commitment. But have some or seeing that centers of would to that in in phase. respond begin them only be actually, moved whether those they may to upon building a in might sizes. is which think work, megawatts breadth a Jersey. a enough actually getting to beyond needs here financing you

a little and is significant Everyone is a little size, different different. place everyone bit it's taking So for us. it's but

Unknown Analyst

just quickly, And can, guys. Excellent to if clarify. I just

shift your co-located here. efforts, Exelon we say, thought [indiscernible] the all On that process opportunities? Does at on any should

Ralph LaRossa

in to committed efforts any No. that's not development. or us way, Yes. his Look, governor We're supporting economic shape on form. shifting the in

in will impacts say So effort. we little going co-located you. load this it a that bit I'm to as are continue concerned to I about other industries.

about co-located plants, think That's units. apply just combined load, cogeneration you data If doesn't for that it's power heat centers. for really to

about upon about where -- be I'm centers, to might behind place. goes, cogeneration just meter as that from concerned concerned depending data everything taking I'm much this rooftop while solar So a

Operator

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

Shahriar Pourreza

a follow-up the Artificial But on at ISA. protest pursuing signing on a not Ralph, to a an if and Obviously, of bearing have before hearing deal on going the against Island. into NOI to or FERC of just Susquehanna RTO you with Julien's wait a kind it's question turns process, sort do deal? you protest the

Ralph LaRossa

think look, be I way think the specific. facilities configured. different nuclear is nuclear going down deal are facility are And very be a the street. They'll every than -- I to

those out FERC current with if when some exist that's do current of whether co-located or will the they there. load, PJM a they challenge one under by and process each its for come sort rules looked at it's that be differently, of So

So hold no, would think -- up. really I'm don't us I anything not

indication of he's that's And to tax passed supporting in, again, me. of more here New signed -- Governor just the is of AI. would That incentives Jersey, what last be and million building policies for If that be there's New to and the state. we're all to company it focused support out signed think up want some we I $XXX attract to happened businesses I the here Jersey -- to AI the to on just just New Jersey. reinforce, he week. Government just no He a

Shahriar Pourreza

I on noted getting just growth remains exclusive lastly, helpful. know X% from kind the guys the Okay. a you X% It's upsides that question Perfect. investors. obviously, of kind And business. rate we've of nuclear to then been That's

of this made FIDs So other we sort about on what thresholds progress outside right? should I head into implement to any guess, data kind opportunity, as some center be of we the upraise some of of So on have upsides, you of thinking these?

Ralph LaRossa

really think I Yes. anything published specifically. we've don't

on say is move Creek that. as I everything long-term Hope nothing track. red will changes has or a process Salem, think There's that fuel on license nothing us we the whether mentioned and flag the forward, remarks upgrades the I the extension. at it we for that raised cycle at in be in the prepared certainly

moving So really, have things in externally. all anything or we've are internal an the seen not road X And forward. received that I a bump analysis from

Shahriar Pourreza

the be execution, Okay. Perfect. on congrats Big soon. seeing you we'll

Operator

question from with is Michael Research. Wolfe Next Sullivan

Michael Sullivan

Can utility having your Island right ISA now? on you transmission with comment, for local discussions just are you an Artificial

Ralph LaRossa

I an has load move to they have anyone the forward has don't think agreement. who interconnection co-located with with provider a until discussion transmission

that have we at said they we stage, haven't anything. -- don't that and I So filed were not

Michael Sullivan

you're kind your -- all there? like has. Any industry the FERC rest on unique PJM. And that? just weighed I a views don't little Or owning and whereas thoughts share unregulated position any to both you you think in in seems officially on transmission of behind Okay. of regulated the docket, maybe the reasoning then I in And generation have a mean, want in of bit

Ralph LaRossa

in details what trust step sure by process believe that weigh they'll really think a a I managed correctly on that feel I -- Michael, don't Well, that PJM. be will enough There's We there. we're in PJM [indiscernible], we in. have challenge FERC at a not that following it's to that rules. we sees so If we I'm with the process, contract

steps that path, rules the so if down specific to we And those in some that it. go follow were very rules. would And have exist we

you As in trying changes, plans. development far to on on supporting the can't we're weighing tell I policy focus economic governor's how much again, as

Michael Sullivan

on up from Any that. to speed the just that's full just state kind No, with stance Nantucket like of in super then the the Is governor's along the Yes. lines same it state I the [indiscernible]. -- offshore ahead of pivoting clear. wind in still news appreciate And light there? over standpoint?

Ralph LaRossa

not that process know It my heard that different. is, anything I I there's indicate nothing perspective, we've here slowing -- down were was blades but there there, some anything in seen challenges with New from the have that up would I the Jersey. there

the -- of And I governor development that I list. fact, top keep at about economic offshore the talking certainly, initiatives. remains wind think priority In

Daniel Cregg

Yes. There's an solicitation ongoing now, Michael.

Operator

Our next Campanella the Barclays. question line from Nick with is of

Nicholas Campanella

just data on the one So more contract opportunity. center

you how -- more X/X should kind offering, as that think you'd smaller know of kind that? kind and just that? dynamics. your piecemeal refueling up about to have of than be does Just of sell much something that here, willing Are cycle can of given the X total different quantum to Just conceptually and that that we really mean thinking you to of capacity? just about you market I XX/X trying units the that outage work But and do to size

Ralph LaRossa

bit wants that anything specific in nothing and to add because us. this again, if for little Look, the team. that's Dan, point role with his closer he Yes. to a There's this at development he's

many It's that I be these here. will involved the there's a -- factors It heard are so going demand think that different being even some look, whether be will considering data ramp-up -- will or to I've not centers matter. of be cases. resource. And don't of you any certainly these would change Nick, to just conversation. as much with so any be anybody on of talk There's I to really where would that about want settle would response It premature. the uncertainty sizing. now, dynamics

Nicholas Campanella

auction here. coming Totally is just given And up I get guess that. PJM's then

payment just assumption we'll tonight, Or forecast, get do results, X% already but you X% there to think the is I auction? in embedded your the there? just from last just assume constant an

Daniel Cregg

we are what from assumptions But nuclear There's units, within of a if longer-term not overall is about the our capacity mix. perspective, generation that significant very you are plan. think overall embedded component a the

comes -- out And terribly is perspective an to overall X% enterprise what to that sensitive -- not here. see so there's our is what not is. X% it from We'll

of than more I seem that point like think the looks bit significant it what end things to we've I've the be us don't the I read range the in lot what certainly barely -- maybe where outside day, out a a move shows to of and seen range. to recently. But move of bullish parameters expect at enough the within what the find -- inside us we'll

Operator

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

Jeremy Tonet

wanted circle on maybe Just a could. data if little I back bit to centers more,

address need points how a this is increased these about the other Your more to plan? release this to references current for us on comments? bit centers [indiscernible] system to here? you investment expand much EV Could think for and Any capital additive data and important your charging. And

Ralph LaRossa

Yes.

I roll plan have forward past. as our at next year we'll the we year, in the the of think capital beginning end

construction in the center, old used one load capacity, go little its into about involved, locate of of the to one up So a walk will any that I'd scenarios Jersey, come -- that be you, to that anybody think look, tell a Jeremy, utility there chosen everything is But be to more there. I'll New familiar used think you'll front out, site is the of the line you in substation. a the be building the because we're that a really servers itself. One might expect data to I close part going up cities have that industrial it's much complicated, of on that's plant greenfield the else you such in [indiscernible] if Northern with has seeing KV will capital updates was floor I through they northern location put if space that required they've of doesn't where capital which to it's couple we'll someone then that is and play need most that -- capital of and XX exist New don't [indiscernible] the and we just if to a that something there, are little exists. And there. an need is that it see I a Jersey very wouldn't built big all and lot is subtransmission out. going support a anymore near and to more a talking things

it. number the make other been one a going seeing in are with us are state, have are, place bag but fact of states say businesses. are that that's continue about every just to where to we're of us be attracting by the I as excited out. to AI the for So some Right here and that working them it's we we're to geographic positive be it's see the mixed the size here. we it's taking different. and falling I of think to and we're A going But the that what things now, growth folks for maybe as as difference We're big a going never would

Daniel Cregg

data look what windows, is well. Jeremy, say competitive that as thing They has regulated center a competitive PJM I'd their done transmission. the there's take you another in at some layer other are from solicitations. as related of end Those up

those of And that and competitive. You've participate before for those within in They're I But where extent be think to go. more capital $XXX the us. we have forward, opportunity million seen in We an plan. existing those see we our there'll on to there come us those opportunity. where us. are don't We'll count available change Maryland, a

Ralph LaRossa

Yes.

mile, every profile down. mile point, right. side. It's last on next Dan different. on will be Jeremy, to see absolutely it's the what's subtransmission PJM think transmission I Dan Window hit required the just watched good signal to going coming that be key is referred in investment to X But low think change last PJM as a to Again, is a I as solicitation, what's

Jeremy Tonet

incremental EV as side impacts makes thoughts the that as any Got could it. have? far can share on sense. you That And

Ralph LaRossa

the seeing turning proud we're on to interconnections. say EV Again, down front. steady And growth not but Yes. any EV we're slow steady,

last We the that we're but capacity, have upgrading mile.

that's really So playing we to. the out way it exactly expected

New will nature of condensed get little and Jersey bit unique again in housing our our commutes. the a

and have has that EVs as of not expansion had the maybe as the So the was challenges that rest pressure the seen expected. country same far

we about that at impact we we having about along trying we're the it's the to thought move the had would, on mile last pace as planned. So and

Jeremy Tonet

could what one But make way I helpful. just their say sticking sensitivities with limitations just at beach could. over playing That's wondering the on Labor any August into case share that us you you and point. the the back other, appreciate could it. share? as one, Got out from stakeholder points if very folks and just And rate this you or else last there, discussions any Day, on anything the can I And process

Ralph LaRossa

case in, I question to No, that here it as a really that we got. rate and big we're Look, the first appreciate you this team asking the was take that. far complement I

saying times, as the team they process. And I in conversations. So those is the would expect Utilities, and run very really as Public been have to multiple efficient executing continues for execute a we thoughtful

would that had has not out So just that, -- I either. But it would red that was that out. settlement we there we to play way. conversations no The expected that don't the fact become there's thought recent exactly I exactly we way point flags had public see played out that COVID

for so has all And I'm grateful this the very way just been portrayed.

Operator

Stanley. from Our Morgan Arcaro line David of next question is the with

David Arcaro

to terms It there's sounds could maybe wondering you there's momentum come in any policy in just a the frame center you when good from front. co-location and on terms contracting offer was would you think perspective of like data that deal? I support if of time a

Ralph LaRossa

but the really just we that with David, thoughtful be policies there. people the aligned everything have appreciate are we state. about we that haven't I are make No, the try in to talk question, sure to that folks gone here and the we

David Arcaro

load required continued in so, you business sense. momentum? growing? requests utility And terms Makes plans would PSE&G. Understood. still was of increased then and is be still data a the in when taking seeing wondering, center Yes. Is address kind backlog that interest if CapEx have the that at there of that I it? to are another you outlook anticipate growth time look you would And at

Ralph LaRossa

David. Yes,

I a that would would bit stage And differently. little at the firm utility hundred that looks be have. are what very -- referred every megawatts consider that again, we I to several So to

The makes as sense, at other look and CapEx forward X analysis I here, triple those stages to that have stages from the are done earlier. even more that That we -- robust will what than we double side. end from the any would be of very each firm or leads in seeing one we're stage, engineering initial somewhat the a at. But projects standpoint, construction had the roll firm do we the year, of the mentioned in

see place. So -- taking we're we're just to it happy

Operator

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

Carly Davenport

Just up to EVs risk Do vehicles. to potential support call of any want election-related on to uptake New on in follow the investment and out the Jersey that? electric you on Jeremy's the question see quickly needed

Ralph LaRossa

don't any I investment No. here. see an real from standpoint risk

going I an think There's interconnections not until those next of the New Jersey distribution of most election are at State to level. that's impact the done November.

only we've will we test. this XX% still talked test by that XXX% question, penetration So market bit industry or a be XX% And get about the the a to electric on I on EVs XXXX is is have think and quite of here. that a before going vehicle we for

electric the tax keep I'm service that some an the will and of at the the uniqueness territory, put. our forefront. we vehicles incentives change. of think, and it Maybe things I concerned of some about not compressed other election So will impact condensed have Again,

Carly Davenport

Got it.

your the longer-term the switching know here? then rolling 'XX are covered Just I you And 'XX requirements, 'XX. waivers you off helpful. context significant a about covered Russia That's also you your I portion supply and thinking just gears, of mentioned in just the through thoughts you're guess I as curious about Great. think there. guess have then through of fuel slides, nuclear Okay. kind in of just how in

Daniel Cregg

bit, given about mentioned Yes. your question. thinking Carly, very within it topical, quite you a and what We're it's

extend I maybe been and here call, at don't extension that I expect -- been And bit the an have so forward little know, when a next of to sitting bit of a And [indiscernible]. that there's would fair we're that's move we'd work there ongoing over time.

So that. the have it. from thing we're interested of a most and immediate on on power, aware to in we on top but urgent that it that's producing of continue actually we're time standpoint move of the lead It's forward not always going

updates to do So that push data out as continue give it. we'll and we

Operator

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

Ryan Levine

in the energy with program, low efficiency program energy or program looking efficiency you territory? EV the extension place, the X-month service the any are extension in the given For to forecast at

Ralph LaRossa

Yes.

be kind a at settle I of looking center triennial in it as to to that think from think refer the you're be other will the people data that other I are we that trying that some EEX, inferring there to policy of that and middle offset of growth. we're load response to that standpoint going

here they're those filings taking the state, it. has utilities So and at review look all the the a from in

to, I think year their reach was it I the time line of reach was to October frame end time settlement. the to think

they're all So on some that utilities. track I across think and for looking for the consistency

expect completely new again, aligned eye is of an I don't the that. filing next a with on So like of filing would big the the in couple today. or them there, policy anything in keep just front and that I jump for a weeks

Ryan Levine

highlighted the frameworks you in viable? be that deterministic different around then prepared scope are feasibility regulatory potential And your What's there your data are or study? are may engaging customers remarks, -- And that Okay. in. center of some study that legal of what's that

Ralph LaRossa

to studies request a gotten mean, digging wire. official a where feasibility the I start an hole and No. buy Yes. out transformers the to copper, to haven't a look, we go install

are if whether out to a looking that is again, our megawatts those So utility, see that to would or request supported. not talk it to are be think you can being engineers with acronym. we I -- every differently And different that refer

it that time. we in. leads requests the both we it feasibility that hundred an studies But triple for us. real say and that's road consider spots then middle in might we've be are business of be that are becomes on. would all our and megawatts, the When side last a the now, couple that in And the different right work process. I feasibility -- a to in of business what new the have request started new the official request comes actual to about coming in are and leads So

Daniel Cregg

Yes.

just need it [indiscernible]. about to else system legal system it the of than more system operationally in having of inherent the incremental and what for within of take and into the anything will your regulatory, I injection that the think I it's kind think question, and tend

Ralph LaRossa

if a regulatory a one was or mean, if the is the somebody fashion. become a installed to turned have issue side a in time it support the issue didn't it down, was that a center final trying scenario. on get only because I be whether might to panel it that regulatory they would in concern data there raised solar was It infrastructure

Ryan Levine

the that saying connection process? you're Okay. to Amazon that confirm, so pursued Great. And or just being through dynamic diligence isn't

Ralph LaRossa

You're the side. we're handling -- development in Dan's data center, team hyperscale commercial a talking through

Daniel Cregg

to grid. an out from it, the happen has that will utility way a that be the the within out has approach of was, best on system capital obligation The and something the co-located something about feasibility question, extent, a is to serve. figuring operation the your what perspective. from do the there to difference to figuring in I perspective versus might study To be extent inherent Yes. think, first which They're a

Operator

is the question with from of line Next Sophie Karp KeyBanc.

Sophie Karp

that? mean, you're with considering looking Just here you that are co-location you kind opportunities, year. how of this area next thought coming or auction back? at some also on like still at point consider the what's into on, your bidding Would formulating I it up Like PJM from strategy hold curious your

Daniel Cregg

Yes.

data the think exist to right built. needs yet doesn't co-located I be that's that center

that right looking take just basically, we at the going that's time. be there, some is to we're are point, going at to over you're I not think cross so some at time now, [indiscernible]. And either But very we'd what And [indiscernible]. where

at quite yet. don't that's a I think So point crossover that,

really are. So we to I that's don't where think critical

Operator

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

Andrew Weisel

those a suitable for be might it facilities? some and of about how leased talk out? the clarify. it just of a of First, bit, of parcels land shape a how Island, could about size that you little you've number much facilities And small know larger of I number is quick but bit one for to the larger talked already a Artificial the smaller or and of one maybe of

Daniel Cregg

and we other would Andrew, it's a really and haven't are to people folks would handle thinking a obviously, but that give talking what great discussed we one about. to question, be as

say I you and comes data configuration each in, would So say is one I center them would that down that path. I want you just don't to design. any unique this, a to But go -- have simply to of

data -- the will centers are of comfortable with multiple some Some be stories.

Some are a stories. multiple of couple not

certain needs, coolly coolly have have different Some others needs.

each equals think one-acre So a about be to we say conversation of land And one a seeing this and have many would whenever hard-pressed really designs megawatts. anybody of them, with it'd we're multiple it.

I and So I stepper conversations any negotiating that's question, but team the kind they of developers. for size think that left better specific are really having with

Andrew Weisel

of ask not Understood. I the if Then a can Certainly question program. sort ZEC X-part one-size-fits-all. on

the question hypothetical being the in is, see nuclear then And and meter, struggling First were conversely, risk? see specifically struggling. intent we about if to red centers the was data than were to uneconomic sweep PTC the ZEC any obviously, concerns behind nukes the would scenario longer support are IRA no at co-located have being November, program nukes you to you of original the if

or for trying signing payers governor you hyperscaler PSE&G So New scenario the to gets in these there Jersey companies? is incentivize supporting make question if New revamped we rate contracts? to be way Is for is, come, sense one it the another program customers tech have as would to the Jersey companies tech co-located mentioned, a do that

Ralph LaRossa

Yes.

here, one this, to of couple would a a out the of ZEC customer all, next which even of I put had. program I'll you again, actually ends first is So say different ads March.

-- next I'm May, from start So sorry.

that scenario. start from So

would that data that we certainly, conversations would center take would -- a from be then. before we there So place any benefit won't that

And would very a you revenue subsidy state it leave my comment or be top just Second, of pancake on on for being else, negotiated hard-pressed subsidy. was of was I'll to the be at, we similar that company was I at there. That's on something think any whether -- subsidy a think think customer that top I my would a stream to be to hard-pressed talent. what asking that would

a I PTC know look what they're believe marketplace. top payment we would that at For in allow take of revenues. be gross payment X don't on that dollar to our hard-pressed when And we're hour comes for the Again, out, per going yet PTC, certainly a seeing federal to that the definition we'll it. megawatt is

So in that laid be ratepayers just there's subsidized a tech out what for little reality. a to TBDs I also asking of I lot there's but New we'd you, be not companies. just be Jersey And of bit in would thinking

step myself in would I personally. of that fact, front probably In conversation

Andrew Weisel

Okay. Great.

of centers, assuming of would direction more So pricing mechanism it data you in market-based be the a things going expect? forward, would go

Ralph LaRossa

-- I well, say never, can't other I see any want I I to never -- but don't again, wouldn't scenario. look,

Operator

of Our Mizuho next question is from with the Crowdell line Securities. Anthony

Anthony Crowdell

quickly, where are you generation. unique regular guess, guys on position just a in I you have

Jersey. New You guys have regulated in the utility

Just that bill like prices. customer units, higher of talk crowding maybe kind all there a line, will see while but I prices, any base thought is is that? -- capacity impact benefit you position you to on power in are the your mean, starts both higher that's the guys unique ends going maybe out where rate investment, managing of

Ralph LaRossa

in because and has economic consistent years. that question, that always pocketbook pay and great been would look anyone to were No, look times right? last their us make put prices I'll do said in sure multiple a a just the been it region, continued pretty pretty of if of since the one have projections take we or you utility say We wallet much have we've not and good put XXXX, done go higher this And any Anthony. it it's about up Yes, in this it's position. the at do that XX we've back region, the state, development again, income that that I've share to the when to well. over bills, and thinking commodity work it's but not in

So expect information a of that's our to materials over that bunch the that lot a got remain IR same. of in I you. that There's would times we've with

the on So that's place lead believe going have going we're this to all to crowding that if conversations we're to see that's electrification. are taking some have take I anything out required investment even would don't to horizon in utility that the place me the that of

Daniel Cregg

at see we for PTCs I for some of think into the nuclear too, think level, an as may be [indiscernible] Anthony, federal PTCs, for rightfully puts which field kick playing support I on investments. there puts it the whatever other carbon-free even

think I that well. So as helps

Operator

from Next the with line of question is Bill UBS. Appicelli

William Appicelli

line and just but the there, supply in Just maybe similar a balance around PJM. questioning demand of Anthony

proliferation on meter to front. growth on So the co-location in view make both I I reliability? mean, going of back whether you kind are generation sectors. the deals have to forward adequate being otherwise, comment you you or about point the confidence PJM current of the do of broadly, process that behind did it's mean, ensure in how viewing demand other the earlier going

Ralph LaRossa

our And projections very very, the one to input our I ball listen so continued change. and the the to see keep got and to PJM their Bill, who to has in react specifically the look, right? I and push, to PJM won't closely, FERC that them NERC I the place every provided last was for we on happy to that we at to leave look to experts else processes. am year. and say need our of eye that folks very

process to I think they've growth started at the load look again.

end forecasts. be see I PJM markets and the signaled that the you've for through some capacity the through and footprint are be of need as come we'll towards heard generation it's year. I that RTEP trust result, we'll said, will transmission X-month from beginning have year, you'll next be this that process everything think within just X-, those that and reflected just there a of And utilities the that or in they've as process. loan either will in will they'll I required, another projections, out other begun have come that that a the with

standpoint tough a anymore. see like capacity when to and going year a plant. have, It's in were I'd a assets things, on looking whatever a building that with X those to years -- path. we're we So that you the it's power tough or to a or We're we to want assets business from that the simply than take decision We're at types have look on continue clean -- the of something might longer here at. we today, on not make

So...

William Appicelli

base have system if legislation PJM generation to companies the for last Right. some at could regulated some point in that pursuing maybe within like that, I guess point that feel mean, contemplated isn't maybe [indiscernible]. I rate allow you

Ralph LaRossa

a more they're I frustrations with to they having and think pretty last conversations may PJM vocal them. be We got listening decent have and may response is closer about to were PJM they're year. how we

So if I And in want really that don't their be. our in might weigh to doing on may weigh I generation. what I I be conversations think on

William Appicelli

I would consider? right? guess for mean, you, this be that is you ever would question a I path

Ralph LaRossa

new X% our From rate or but have in to more now, have to would going not in our the Jersey like replacement we look, to we'd wires like listen, we activities. rotating to certainly listen equipment. federal we're have enough of of the the CapEx New requests, standpoint, and times, Bill, business If the building not -- putting those ground are we government said state I our pipe in with utilities I'm multiple says, air do than the and "Hey, right X% growth that"

So that if that put set. can we certainly skill happens,

We restarted we're it to right it. resolve to, have that we're but we in in needed of now. kind if the could marketplace We

Operator

going was floor Correct. Yes. just comments. you the hand closing back I to to for

Ralph LaRossa

responded forward calling done Texas. I season little normal I the Texas, the responded to work that all for into Texas a we'll down go make to I'd standpoint storms a to on of lot [indiscernible] was by and as I'm must the storm either all and a Well, that's hard and line those from all you thank took go ask day Take season, lights really general. that, standpoint keep working in really storm security bit in place, keep our off up end going through, the do will in, down thank that the I the Great. the out, X everybody we there comment come and us that from want section, say, All We're and conversation. prayers. And in workers really mind there's and calling go just our in that hard with of and some great I at with in here just to you obviously, at in months. I in that behaviors right. takes the catch out listen, road aback, really, I we -- out appreciate Q&A was people day of and a will And there's want taking let's some in thoughts just care. that the conditions in you in had script by remind or tough the to and in them here. appreciate robust. just and X all place

Operator

gentlemen, Ladies today's teleconference. this and concludes

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

Public Service Enterprise (PEG) 30 Jul 242024 Q2 Earnings call transcript