PEG - Earnings call transcript Q3 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'm your event operator today. I would like to welcome everyone to today's conference, Public Service Enterprise Group's Third Quarter 2024 Earnings Conference Call and Webcast. [Operator Instructions] As a reminder, this conference is being recorded today, November 4, 2024, and will be available for replay as an audio webcast on PSEG's Investor Relations website at https://investor.pseg.com. I would now like to turn the conference over to Carlotta Chan. Please go ahead.

Carlotta Chan

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

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

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

Ralph LaRossa

everyone, regulatory Good and successfully quarter that third Public and for Carlotta. review call Board Jersey important joining results resolved Utilities the by the you, that morning last of X us filings to month. on thanks were on Thank approved settlements the PSEG's New through we update you to

lift per PSEG that This per $X.XX of with pension share bringing impacted net first financial occurred months for the results results. per of XXXX. months income quarter of in share of and share out reported third first was third the net by start X $X.XX August and Let's per for income of the XXXX, $X.XX to X XXXX, which compares for the to our share. $X.XX respectively quarter

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

attachment a in XXXX and updated on review of results its note solid that year. earnings have XX, X quarter effect $X.XX $X.XX rates to shown XXXX and the non-GAAP earnings implementation the I will financial and included to But operating year of exclude non-GAAP operating gross and X, share. call. into the Dan to our are period in financial of per realization share later base new guidance This narrow of in reflects the the per items for third our portion enable the which range a posted half and detailed us October year-to-date to of results from we release. PSEG reminder, original significant narrow to a that $X.XX full margin $X.XX during range want As PSE&G's the distribution this went a Power's provide second

returned third the warmest during Jersey the New front, in operating summer the normal On weather experienced years. we've XX following quarter quarter, to the second than in was that more

We the have the storms many devastating of impacts country. in hurricanes and of parts seen

reliable to and in transmission high as in with to the far, quiet with our some load we summer send PSEG with its of XXXX Supplying been megawatts our of have Fortunately, to nuclear energy. temperatures minimal season merchant service well. expected aid Jersey territory hurricane and XX/X southern XX in perform fleet July continues PJM Fahrenheit network met pleased thus mutual our degrees XX,XXX been the carbon-free grid PSE&G on our distribution XX reliability Power, operated peers. outages. At has of and peak New

to X% technology-based to helping October, these those to results the attract exemplary had would run opportunities third of refueling. which X% nuclear the pursue incremental facilities to to and day group. Switching its in non-GAAP long-term the nuclear, just began attributes new rate. In also businesses long-term the and output Power including Institute We a long-term higher growth operating prices. The be The breaker-to-breaker opportunities scheduled completed incremental contracts state. Nuclear potentially rating down long-term growth is to operations from Nuclear continue at And earnings PSEG's XXX X, its recently coast stated activity. begin consecutive received Unit operators, for to the Salem safety Salem peer-to-peer of PSEG benchmarking station also regulatory of

energy X We the are case pleased second to PSE&G's base phase regulatory energy month. rate of filings clean and have future major successfully efficiency resolved programs. its last

BPU benefiting settlement new our XX. done and directly balanced the our objectives, our results case October customer of distribution requirement to of multiparty predictability provides work mechanisms rate of is We and by a approved gas has $XX.X capitalization. also its the the key based all both PSE&G's first parties of that equity base recovery appreciate base new tax XXXX, First, and equity effective return achieve shareholders. distribution changes. The implement a the since was rate deferral rates electric of prudent one to with benefits all accelerated which terms previously while financial storm pension total to to tax of due of and investments an this been revenues $XXX billion, affordability. of also deferred to upon to revenue XX% addresses approved prior and including of This of The serve and by deductions customers million reducing PSE&G of going for provides on of customers increase forward. in preserving our updated an X.X% recovery settlement rate annual capital incremental an additional back federal reliably variability flow a ratio costs settlement

with It impacts portion order address for expenses also accounting the to obtained going recovery You out of pension will This regulatory in recall XXXX we forward. deferral will of The a approval covers will remaining annual and equipment. program back over pension investment billion a Combined commitment treated in an as of that the and billion a be X costs. X of to of new to lift filing repayment variability rate efficiency for help along period authorizes program completed from approximately nonregulated $X XXXX, accounting years. we programs identified paths energy programs XXXX. obligations. of additional BPU the mechanism XX an customer provide XXXX base. the of $X.X will efficiency administrative for pension PSE&G's of of through purchases expenses net be settlement the should energy OPEB January on-bill mitigate approved with of most The Both EE of June pension and the

help a affordability focus and efficiency key of energy lower containment communities. income focus all and and phase programs New continue efforts on utility The save cost training our second our lower customers Jersey's carbon the efficiency to bills, job mill alongside continue reduce energy, EE-related will energy remains efforts. Customer bill emissions

and past gas to distribution this PSE&G retained comparison bills. Following regional lowest position the and an will the bill regional PSE&G gas its base customer residential average region. rate pay on typical the electric continue A bill peers customer in an bill have favorable with increase, versus consistent electric

addition, X% increase rate typical X%. customer an combined of on winter gas lowering In the for October October, therm. BGSS changes from reduction, the when $X.XX In impact the combined supply cost rate rate per heating BPU a the the to during time in authorized therm per gas season. to of BGSS from X, $X.XX the upcoming reduction base increase about to that bill PSE&G's occurred and with The customers base cost help electric lower gas

the quarter installations with investment billion, is higher complete to capital billion also within capital PSE&G are side, the year's planned invested on budget approximately spending $X is spend. schedule driven capital third year-end. expenditures, and by slightly projected on EE by we This our during almost than about $XXX Notably, higher AMI new at this business On to complete million. requests of XXXX $X.X and by and all

with plan regulated to billion portion total. billion $XX representing We $XX of to XXXX, continue X-year to the through PSEG's forecast billion $XX the $XX.X capital billion

through January. already in this this These settlement will the infrastructure of With the efficiency are annual commitments a by rate is selection program solicitations, produce base under of Transmission our to the Competitive begin expected winners the compound energy or efficiency X.X% we prebuild year-end. the new energy regulated that periods. Switching rate in to captured projections XXXX XXXX wind offshore BPU investments X% growth approved, of winner coming over

took its none a Window projects solutions solicitation load the PJM XXXX and study recommend these preferred of in then in submitted Expansion in are to load capital We also updates. investment September. their PJM The is approve of use forecast potential bids XXXX. to submission months reminder, current as expected Transmission few Plan updated recently And February Regional included into next an PJM's in part annual place our in the as X. of projects for its forecast. PSE&G a selected

expand megawatts sites by stands peak approximately at over XXX next Our XX the years. center expected existing data are currently XXX about to megawatts and these load

they the billion CoreWeave, data X,XXX provide to announced not XXX,XXX its firm first build business. nearly initiate to and applications an data invest formal increase convert in center indication in interest. Last center feasibility new received new foot studies center represent over but megawatts also $X.X of data New load of center to do inquiries square amounts data have a facility We XXX to plans developer of a in megawatts commitments, week, Jersey. These

numerous similar focused are activity locations throughout replicating that has the state. on fashion state's be reutilized a in can efforts economic New the development Jersey this and

technical are conference on of We and the FERC decision Friday. aware

and issue data we going center will to carbon-free continue said, on to will grow, continued power. We demand that we anticipate the clarity this continue look for desire dispatchable for forward. believe That

new As Consistent our contracting help that output attract state low to attractive at execution to New with can technology-based nuclear policy. such, Jersey. long-term we of PSEG Power, businesses risk at with pursue continue also pricing

the would and output we XXX units carbon-free to In co-owned at generation. Switching tax potentially that combined by Long thermal contract. for technology-neutral believe Island addition, credits increase our we the and could qualify megawatts are approximately new pursuing upgrades Salem for efficiency their

the LIPA fuel extension know, As a power began XXXX. end operating the runs you LIPA and agreement both contract the process management and through contracts. OSA on with existing our of renewal supply of service

We the on have first quarter of of submitted our RFP LIPA's proposals during status and proposals process an update anticipate both XXXX. the into

of reaffirming outcome and price the of tax nuclear approved consistent wrapping threshold rate expected output nuclear recently to for uses Today, through X% price units. of the long-term XXXX, program implemented. So EE approved production the things growth to X% operating credit we incorporated the non-GAAP on quarter. balanced up an the are with which settlement our We guidance the earnings had our case

is the results. X the year, expected In closing, through our of solid months first execution driving

to for assist after Helene. close consistent to after restoration who help on Hurricanes with for growth. I'd are equity our settled solid is totaling in we with focus to do industry, billion and aid capital shout energy provides or sell has X-year initiatives. capital unique investment to we mutual X-year very the out and PSEG our and reciprocate dividend months, they thanks rather infrastructure prioritize sustainable fund on on X crews service continued aid us a and financial to past crews advancing our for X predictability of we Sandy. employees plan Florida to increasing focused all without and PSE&G sheet. aid proceedings results all the with our monetization new as receive $XX.X Milton a the our in the to efficiency to balance have We a the Georgia and investment regulatory mutual also need Super to The billion special has and went Storm pleased network enabled are opportunity assets mutual we issue the This plan like $XX from

will I be results detail, available turn to and the after your for and to we'll questions financial discuss call in remarks. now outlook greater over Dan his our

Daniel Cregg

Good Ralph. morning, everybody. you, Thank

$X.XX to net margin and increased quarter our charts for changes reported per rate share depreciation non-GAAP and XXXX, in interest The for share higher due to respectively, recoveries of non-GAAP storm third from to margin Energy and per share XXXX, spending $X.XX the a and XXXX, Infrastructure distribution a the growth $X.XX operating due timing that per flat spend. interest of distribution the of per XXXX. through earlier, the earnings timing compared quarter of of X share per Lower true-up. rose $X.XX contribution $X.XX and the share, third $X.XX XXXX. of share O&M third business both As and operating of that quarter and third higher OPEB to Split of per $X.XX which $X.XX in XXXX, third X-month resulted earnings II from unfavorable the base net Depreciation to per Energy pension Slides of share expense Non-GAAP by Slides the Ralph to higher per per income and major quarter-over-quarter offset to were in of to of share quarter. income you periods with X per income quarter per investment-related year by IAP first growth rate and of continued PSE&G, months and results XX approval. compared transmission the net and by the in by October offset third cessation $X.XX advance non-GAAP for effective main business. Starting resulting and investment quarter earlier compared the earnings X contain in of ago. Distribution and Strong the Compared amortization take was recovery quarter mentioned to share share. were segment XXXX was expense XXXX. IT quarter XXXX, case primarily per Efficiency for than credits, rate the in unfavorable the operating investment XXXX X non-GAAP in was a was rate the for which or favorable cost and quarter share expense regulated waterfall of of and investment by per Advancement income more by higher on higher expense. investments drivers margin a Program operating net and absence $X.XX share between OPEB-related the and ended year date interest in the reflecting $X.XX higher reported compared for earnings share compared detail comparison from third formula in to $X.XX cyber XXXX. the share per PSEG

of of but $X.XX third XXXX. Weather quarter net an was the impact efficiency the and or adoption And of minimal on X% X% annual to the of weather recorded negative, the warmer Program, which approximately gas XXXX. the Incentive a had Conservation each is which CIP of The positive mechanism, in compared X% index utility while other promote quarter, over number customers, gas per sales under the quarter normal, the effective impact to other than third quarter, of as impact past year. On than weather or timing its continued limits the year billion. reminder, PSE&G mechanism, and temperature to driver nets humidity electric and of the a capital have a taxes approximately as by spend year-to-date measured and variances grow of energy X Lastly, by PSE&G rate, programs. margins third the the tax full the through electric by our over cooler just margin which CIP because spending, invested $X.X margin variations taxes during $X unfavorable bringing billion during share to helping

the to IAP, execution spending last For programs. electric continued in on including efficiency and Based of year gas spend infrastructure plan $X.X system our billion. Strong Energy capital our mile is well our expected reliability spend slightly the programs, full XXXX, our original the higher ongoing replacement energy as than $X.X as billion, our total of

reaffirming our to regulated XXXX $XX We billion to of investment are billion over plan of well the CAGR period as X% XXXX $XX our same capital rate X.X%. as base to

and Power Moving to PSEG Other.

share for earnings share to third of per were and net share XXXX. XXXX the $X.XX $X.XX the of of compared for Power for per third of operating income the XXXX. quarter per other quarter The net PSEG $X.XX For non-GAAP third of loss reported XXXX. of quarter per operating non-GAAP $X.XX share quarter compared the a to earnings third

per of by energy net prices XXXX. share, X, recontracting third driven net quarter the the PTC margin that which includes of effect Nuclear rose nuclear impact higher the at by $X.XX For XXXX, took January

upon hedge a in for our of year. of when last year And differs over higher As year Peach absence a of costs at hedges. the share the the was the per and and quarter based first by Bottom This gross realizing step-up XXXX, units mentioned of higher, mostly XXXX onetime O&M benefit the we reflecting reminder, expense was XXXX. second increase Interest incremental were the share taxes driven the price Power portion PSEG gross higher the during last other anticipated from per margin half annual interest $X.XX of in shape from most in the that share we the unfavorable significant margin realized XXXX's of XXXX. a underlying to quarter third $X.XX per debt compared $X.XX rates. favorable the

year terawatt line quarter ran XX.X%. capacity fleet at in of operating the financing XXXX produced earlier with period On the factor some third during Touching hours the on the recent approximately X.X and a of nuclear side, activity.

our end strong, PSEG collateral total on million September million, balance $X.X from hand. below cash As September, $XXX supporting XX Through position. was and of September available of variable strong rate, XXXX, of liquidity XXXX, to which had cash including the the a cash mitigates of billion, fixed fluctuations swapped of $XXX of of was maturing our operations interest March term consisted loan $X.XX PSEG's debt end of at which been rate of in the entirety billion a has rates. liquidity

XX MTNs $XXX portion A were X.XX% August As $X.X of secured proceeds XXXX minimal given billion end maturity $XXX X.XX% or medium-term In of X.X% MTNs of we due the the August to repay of notes August PSE&G September, issued of had used and variable MTNs rate of MTNs. of million swaps, our August, XXXX. $XXX due the debt. million of comprised of million

equity $X.XX closing, opportunity we or and supports consistent share the to X-year base dividend reflects to are by per our effect $X.XX per assets share PSEG's $X.XX narrowing ahead, the of PSEG's full growth. In This of capital and sheet sustainable earnings PSE&G's dominated new first spending CapEx which took $X.XX regulated for and program the from balance the operating provides solid non-GAAP results through execution sell prior. October quarters Looking guidance need XX. distribution to XXXX to solid PSEG's XXXX year rates, new update X without

in annual our PTC. also capital supported are to compound reaffirming nuclear our growth non-GAAP programs We the investment X% through long-term X% and XXXX, earnings operating by

we filings planning to XXXX update and annual full guidance will finalize with efficiency quarter which process, us to position year With will approved, financial fourth our case earnings disclosures rate release. our business now the and energy our look

operating non-GAAP PSEG's introduce will We guidance XXXX. earnings for

will capital investment We forward our and plans. roll refresh

our discuss the earnings in We base details long-term year-end XXXX. CAGR's rate our during of and and will call February update

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

Operator

Ladies is and question community. begin gentlemen, we Instructions] the now will members financial from with session Guggenheim [Operator question-and-answer of Shahriar Pourreza for first Partners. The the

Shahriar Pourreza

with deal you conventional more do So to just in of of issues off to the starting behind transmission a conversations the potential nuclear front discussions capacity at calculus the with change Ralph, ISA any your this the on Artificial interconnections? does the counterparty? with have So of meter option and this sort your meter the deals. Does Island, discussions kind FERC push And interconnection there? risks present the changes to on commercial

Ralph LaRossa

Yes.

So here try whole look, agreement little I'll upfront to hit issue on bit. that interconnection a

was that of that think FERC. was made a by decision we First all, narrow very

of not to the to that was parties part So agreement. party very were not submitted specific what We're by that, we there.

New will to their solution. economic So slow slowed Jersey of from to meet us trying to goals. a us but state details a to not It don't has it talk I down not There's ways development help of lot want lot the a come about different down. it in of

solution. Constellation had we've one I think seen Talen with another solution,

our our and that solution like a each will the still because exists individual are customer X unit bring changed permit fuel site rates very get hours we're could when else. we're to that the the table. the think like redundancy facility think that positioned uniquely we the We We cycle. additionality site additionality site individual Hope to early from and Creek going there. We I of each provide, we provide different to going somebody and megawatt our the additional our op like to that

And a little to I of out. all So light that have site think of we about itself come will lot those to our bit there's our things when are different than a and continue things others. play conversations,

Shahriar Pourreza

it the despite the So event happened? sounds Ralph, it from like anything rejection, the FERC the conversations, changed sound doesn't has before like messaging,

Ralph LaRossa

couple I different or Yes. Again, Sure. since solution hours an where so ultimate our could number of think But that come in came I we solution and of stick get rehearing a to there's think you out. for specific different -- minutes can for somebody you that trying been look, scenario, it's there. I XX Look, a to paths all see what proceeding, out. said a ago, asking see could I

the out they technical could going of -- mean You federal, not something coming what conference the I see federal the on. and have

the as coming something or somebody a that supports. FERC exists see is you interconnection with an out XXX different out and see proceeding it could a agreement put together that little solution has could one the a You Exelon than that comes

New scenarios supporting of we're just state are focused goals. economic the Jersey's And any So dead of those possible. I think development on

Shahriar Pourreza

year, And by for want year, an and discussions. obviously him. -- put just you corner give sense just conversations this governors, leaving timing, important I'll by the is this where hopefully you been a just shot. to Can just it's maybe any timing initiative you is on a Do and we've with the sense of line? me, Ralph, end in When a year. maybe on past, you about it ask had give don't the have but us the time for This in next I are lastly

Ralph LaRossa

Yes.

the election initiatives and line of started since will on the end misunderstood year. that ton different a misspoke, those policies He supporting But was said but governor's would we we focused and to been an conversations like be make always time at of or November I we've [indiscernible] for discussions. have done turns discussed. we've Obviously, be get sense this next term. our during that out in in this would there'll if Sorry us. that

Shahriar Pourreza

you few to forward appreciate I'm Florida. in again. a it. in that. Thanks I days See looking guys it. Got

Operator

next Campanella Barclays. from with Nicholas question Our is

Nicholas Campanella

kind to linear. rate, it earning of lot Jersey, you about outlined were ROE when Like ask, to the presumably, there's you under been the kind your growth wanted of new a we're in talked happened, that's the prior have end kind there. right? of year of as you to X% we And I New X% getting rates not here, being

We also kind should X%? Can that have we of auction of consider any as kind this capacity to kind how you about positions that to print. of we talk get you And within X% drivers just 'XX?

Ralph LaRossa

Yes, sure. I'll let Dan there. give you some details

Daniel Cregg

a Yes. we Nick, as to going guidance I'm year's step not give any particular forward. 'XX or

I see do are. to We that had where think that point, year. along we into in half rate result assumed your range would the of at play. is I case this all think, looking come of the you're the will we second elements

kind that where have the deployed that rate the of the So being we key capital case able And one recover at timing fully and is we also the to prudently look of elements was out. the during case expected period. that as for rate that that was came

There's expected do how been we go to will But where So outcome, been point, we a think I about it I where and be. your good it was we're think it's as going. To for that's I unfortunate thinking do we've that capacity through little baked got into delay, we bit balancing to a of we have a auctions. those continue on auctions think through time. step but a those we

right, about split you the down, up auctions go may years, they think Nick. do If and

May frame. June of got time to you've a kind So a

moderating so and see. to auctions that And downs see those year-over-year on may results a go, ups throughout where extent effect see the you will we that you some the

pretty about we've if of through think think that X% shape you've X% talked that time you step as about. we've given been the frame in to just I that range you So good

Nicholas Campanella

in the on Okay. the level Great. to And about grid scenario, like there thinking in then per you to dollar any a kind what impactful I like Artificial in basis meter of or appreciate it. region of looks that overall economics? were Island I how guide front on charge is any would guess Is megawatt move just if of kind to otherwise? actually you that a that

Ralph LaRossa

couple so a look, Well, things there. of

said that back -- is we're for back and also right. capacity going correctly But get proceed, go take we're the auction see PJM to sorry that auction the me we're to And that right? Dan Let didn't happy second. a a step to

at think on dollars look a under hour full the of step right complaint megawatt getting just take to and helpful for made at context could insurers look pieces So really that rate if take would RMR we now. then, at rate you brand basis we're encourage something reference comments in -- and deal filings that that service a unit It's pricing of filed its whether piece net based in of were effect. out territory. network amount the risk that I a back in the tax economic in. figuring it talking you and to some else, $X this New And still and that And was right upon how put Jersey or form made some the just take be about it the or people breaks look shape is might all there I were really look There around the some that service or RMR goals. that A about just if the a from a to within state that standpoint, any could went it's pricing you it, exists at. And at the meet up here look, that transmission a way, that

Nicholas Campanella

you I'll color. for Thanks you. the in Thank here. days helpful. very few a That's see

Operator

is of next line The question Paul the from Zimbardo with Jefferies.

Paul Zimbardo

year to case dynamics. mean talked when you a Because lumpy, nitpick, X% mentioned, If within that do to question, X% I I we've but basis? follow to I could Nick's know the about you annual rate production an be credits tax on on don't up the CAGR expect little every

is to expect Or every be CAGR we you range think that should more year? like a do So that within of?

Daniel Cregg

that ought period. about could where good you we longer Could of term on in run Absolutely, think forward. as on the think to think that's But Paul. kind I to be I go business a basis. about way a we within move CAGR be a thinking us situations how around will it

Paul Zimbardo

shifting some then the in the give would quantification any be And $XXX Understood. greenfield PSEG, perspective helpful. just was roughly other of of or of a Okay. little could million scope PJM to transmission that house, side proposals? the transmission project but I needs you or saw there RTEP

Daniel Cregg

referenced as Yes. start Maryland got go out were we'll you Window -- I have which by proposal if PJM order. a short in a there. just comparably in moving X, that's we of successful I Ralph sized, backwards, mean kind on front we've along find and think project the sitting I in so that's of in first call,

I think to Paul, to topic of continue around given these data that the what to the continue other on come opportunities centers, that's will going more will kicked be forward. you're been and see,

think we'll to forward move what tell bids figure the them analyze try in competitive with to all. forward do on. do we move to I in to But ability work to I sense some forward. continue to you can out move us that and We'll makes put confidence for our

in that capital is just a The not program, as bid incremental take look competitively other program. thing I you would transmission say is at the

of we these to able So some need capital hit to be able to be competitive don't the budget. to win programs

Operator

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

Jeremy Tonet

conversation you pricing upside more the to you opportunities? was Surprisingly, can mentioned start look in to the market at or back op predicated potential changed. that but data to off, power wanted to opportunity other when past, you thermal had outlook XXX related the come center certain I think I I talk guess, about want just that's the set, and maybe on rates And here.

how of And that about us now, front we think have you everything that? so just wondering, in given

Ralph LaRossa

Yes. range XXX No, in still right that we're now.

opportunity are and to there out off continue might continue have look to not sets at it, teams what to Our but at megawatts refine that be we XXX point. this going moved

Jeremy Tonet

hurt to important, Got just and care And well, state carbon-free as Or it And those more power here? the conversations. then Jersey something New if is most? to the delay economic Understood. is about the broadly being that's development it. your to does time customers your power about most it support thinking time FERC objectives

Ralph LaRossa

it's customer think of I all you're talking it above, it's upon look, Jeremy, and depends which to. -- the

generation focused a on really standpoint. are additionality from Some clean

Some you operates the units about time that. that people reliability And how at are speed them. are on market. to focused doubt and I think the then to no everyone have the of There's looking

and So good we pretty on X those of down. indicated believe we're backing shape factors, haven't we all in at all we're that's that why

Operator

is of line the Durgesh Evercore from The ISI. question Chopra with next

Durgesh Chopra

mean that the lot quarter one Just in the that Maybe the kind third was through order the you detail, things of implications in thank grid Ralph, that. reliability. a of taking grid can up just brought away for Any was mentioned bit it, but you you address color just just the of I you of maybe tariff from power of notion share be you This a color then how would to it do the to data center. more helpful. that. little overcome as went giving that and

Ralph LaRossa

Yes.

got certainty so region. now, right I Durgesh, don't going any an right? anything and sense things ultimately on, topology large You've into Where it it going are stays really it's that the region. will unit as of have unit a with off, So have that on in If the that think another on connects on different the it. grid to many grid insurers, in region it have Brand will could down that one there with another. we the TMI impact is example, impact comes state

Storm after tell here stability sure want you work skis extra can So of you what this you grid reliability standpoint our going overall, PJM. Super I I are the be tell will be ahead from to won't that began tell way a our Jersey part we that did was of I that after the in in But any upgrades don't play we issues needed I lot for blackout a if system because Sandy. of out New generators there know and to capacity that to have XXXX the other the I exactly in of on until are. how

Daniel Cregg

that's discussions. needs, I and demand meet some I supply looking taking think, And important the mean, think, center there's be The as just sight of is, people going sight stuff of from. in think is to but Durgesh to for a may been whole meter, you're related details the the And is going thing needed I that's, it's keep I supply-demand referenced it element numerous mean, change and aggregate of that's of whether day, the I Friday's a the know -- discussions right? front lose as to have Security a of came in come this it's of the where to off important you're the data stated been lot to of host of it. that doesn't Ralph out pretty times, was National can And I the end and behind At reasons. to of at pass. come. was incremental ultimately some how meter, to of some going to

Durgesh Chopra

I certainly the are supply-demand it's No, challenges. discussion, the whether front mean, Yes. that behind, appreciate I supply/demand or challenges

before supportive the option you just forward? FERC deals? a quickly would these up, to follow you mean, your Would nuclear a on preserve do out you of about preference Just Where maybe call I to their can of you Or what's Ralph, had next be think kind advocating co-location clearly, you that? co-location rather of how -- -- Constellation of process trying just co-location I for there on I'm you is having how going your earnings figure kind if stance would do that? for plants?

Ralph LaRossa

Yes.

this we to make but for sticking tried too it, probably as simple So to Durgesh, it. talk about I I'm folks

of for to is the all you any are And bear what the in think charge energy? charge going someone What you you hyperscaler to the to going bring are attract a it's someone the what transmission? going way area. And charge state to above I that to package to combination the needs combination are of to somebody taxes? of of for a

healthy million $XXX Jersey. So the refund right tax a now, range New that the we place in state I in plan there's of think in range, maybe million tax incentives $XXX have are very

need be take XX/X. there's very going on revenue to and would a kick it data center they little and very, get of great be this. that's the demand on response able So that going a from Maybe. going multiple is an to helpful in that transmission upon bit Again, it depends whether to attracting services? additional someone. Does another to Are stream be look multiple, respond someone solution? So be to can ways you at who's

in really into we And co-located meter or Jersey. front that's bring bear co-located entities going of either. of I lock front those to don't hey, want the the to going want New don't over so I bring of the to really lock to to to, the in in what's -- It's over meter, want but to solution state that

Durgesh Chopra

Thanks Ralph. you, again. discussion. I appreciate Thank the

Operator

The next of question is the Michael line Wolfe Research. Sullivan with from

Michael Sullivan

put and discussion the some out of there. Appreciate you numbers the

no? just there you the and we Island, about their showing refreshed -- think to How to for some ACE in all at or pursuing what you're how numbers forecast. with large Just do has there load PJM trying you're would load anything that may your like of Exelon yet Artificial out up pertain be work

Ralph LaRossa

they really what comment ACE want submitted. into I don't their I have No, made to calculations. on insight don't how any

the and I'd about talking that kind on there's quite PJM of quite I that. footprint, load it's on in, it bit coming be -- been will for we've something be say, So general, in some a time. firm of

numbers year might I in expected, been few years this line that yelling more was for in a what were with folks our we've have but think because advance.

especially front. I standpoint, to of our see realistic want I specific wouldn't of a But forecast that overall kind from load footprint happy And comment see to couple other an was could I catching so to very up West on. And in. I utilities, say to the on came ACE, that the

Michael Sullivan

the Okay. know in then year-end whether call be will you're we think looking Sure. guess, or separately, there, whether include it to opportunity, just risk you enough decide No just there? and your how outcomes not maybe What's range I worries by the there. you other? and And publicly or that about at, of owned LIPA

Ralph LaRossa

Yes.

know or so. have months quarter think last about that of continue year, to to beginning the to We've yes, hear solution, a service end to would end with X And needs at there of next place the 'XX. we the is provider take that by pretty of been $X.XX. time don't some they're risk So stick the owned should transition year with they're going is we because the I the model. publicly $X.XX I going clear What over we by that of the expect first in what

with quarter, by how XX expectation lot sooner, out -- goals LIPA some the of find that. good but it those first that can that upon So we is of Reform we place ago have end my maybe now. sense And the we a a aligned would and with written years how how pretty stand something is is put where the XX, of Act were depends in contract it of

Operator

Our proceed David Arcaro line next Please with of is your the question Stanley. from questions. with Morgan

David Arcaro

there be that or data for what seeing? wondering, any on seeing load center that I feasibility would data -- incremental you're demand update inquiries given with higher that was just utility the on new CapEx you're opportunities, and studies. that and potential Thanks investment

Ralph LaRossa

Yes.

to solution. to us his require as us in anything would based call. forward seen a we're Dan in prepared fourth sure to I remarks, line. driving our That's different roll not But it's upon haven't So going transmission said new quarter a that for what that build all exists.

data developers, headquarters. CoreWeave going mentioned pharmaceutical a on largest that earlier, we One site the is of of the center the former

to but some based will those there's there'll So done and facilities yet are done there, whether customer to be some upgrades upgrades it utility-based. decent need be be how or determined

nothing capital programs. in is that I change our So would an driving say astronomical but --

Daniel Cregg

ability it's incremental the the that and system data a the to of on some in is And centers. upshot and its take that state to it's reference

that's So positive. a net

David Arcaro

have talked able it. be quantify And yes, didn't really Is you that capacity you might to the the you number that you way of think transmission megawatts your might know state. as about I Got could absolutely. major appreciate -- handle yes, any it's Yes, if some peers in that transmission without capacity. excess about a maybe there upgrades? of I have Or don't

if to that? wondering So you way any just frame have

Ralph LaRossa

out put all analysis changes a standpoint. that's a at from by and runs encourage Again, take every CETO/CETL Yes, you process how based PJM load I when the that translates. look PJM to upon and David, year generator that the would

capacity the So completed is exists. indication analysis a that where when be will pretty that good excess is

Operator

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

Anthony Crowdell

Good good morning morning Ralph, Dan.

Ralph LaRossa

Welcome season. the hockey

Anthony Crowdell

voice again, earnings, LIPA competitive is how season. but successful the it's $X.XX a little extra UA attention. Ralph, who's Welcome and or last, going off go team, the question, for little hoarse. don't Mike name. think But in XX I kid my weather just a $X.XX, right needs is know be and just a if years. the whatever, you hockey instrumental my named incremental contract, around, to that's of Ralph given the The worked Has for it's you quickly, more PSEG's I mean, Sullivan's do to to it's not also

Ralph LaRossa

Yes. I being read -- issue. to bit don't be as could to want the arrogant too a that reaction on any little

satisfaction and a I customer the safety from from reliability proud of work standpoint, think done we've done great a We're job. very standpoint from we've there that standpoint. a a

the done where commitments an of we've -- were. affordability remained all and We've that. So of met our standpoint, from expectations our have prices all

very just a I sure as to story to of the meets forward. good tell. want LIPA story make they our needs I that So look think have we

Anthony Crowdell

cost of And Salem, the megawatts that quantified of if think the you'll get Great. have you out already, this you've just it? many apologies and answered guys on potential how upgraded you

Ralph LaRossa

with latest have megawatts, We the given were if comes know I that that, for talking Anthony don't deck in numbers, we'll we've and up the about but it follow definitely the XXX EEI. on we'll out

Operator

is with Ladenburg line next of the The Paul Thalmann. from question Fremont

Paul Fremont

to to needed maybe going wanted detail been CoreWeave's to going that there and little the are determination the bit facility? lease. Has megawatts on how facility of in who's be to Congratulations. just many a I power any terms power more get

Ralph LaRossa

Yes.

eventually to it's my power, all serves up they're wouldn't press megawatts to I me XXX it that. From completed. about release, was when their going think I memory on going initially, it's buy XXX over the who comment and correct,

who we'll contracted a there I've the it, if process. supplier, anything about third-party be they've through But so not it be from a prepared handle with. if not, Just read were BGS standpoint, to utility

Paul Fremont

I the contract nuclear? mean, merchant could the with you be potentially powering in involved

Ralph LaRossa

always We Paul. be could involved,

involved be where announced they We doing. stuff, they not to I what that might have estimate would be not -- would not anything, have and and want guess on a to but license we retail want -- I or in could

Paul Fremont

nuclear then guess when And sort the plants? with you state. work office additional partnership governor's you're Constellation trying I the to since Are working in in terms them various you into with -- also in bring in data in with of developers center of partnerships

Ralph LaRossa

No.

Jersey, Paul, to So personal of my is -- most level, my choose own is which development time economic my New arms. give one a involvement at of I the governor's

on on closely so with Authority. work Economic the data when in then when it may side, commercial a the what and our Jersey and New standpoint, their we them works Dan from And I directly And have. projects and lot customer Jersey and looking operations From take standpoint. a power center requests they team between get the are PSE&G of at Development come operations his and team New a conversations place choose leads

necessarily and our that's place from the enterprise an not interactions So level Governor's where take office. with

Paul Fremont

there PTCs, lastly, the and for of then how interpretation by in a is out -- of in terms the the of going price? in final And market terms they're account PTCs DOE the terms to

Ralph LaRossa

give that Dan. one to will I

Daniel Cregg

regs exact on Treasury, Paul. waiting from still We're Yes. gross the receipts, definition of

is no. the So answer

Paul Fremont

it? handling you So for accounting purposes, are how

Daniel Cregg

Yes.

estimate where internal are as accordingly. things we So taking and will moving land our best to

wait maybe little but find don't is to a to bit result. But near out to term, and we get to that time we'll whether references to guess with the the have this it. have forward election on anything I intent We by longer right that out that it's find I this do have it is it's administration day move heard the have we don't would a out. now. sense their know X

Operator

next questions Davenport with line Goldman The come Sachs. of Carly from the

Carly Davenport

nuclear Maybe fuel I wanted just the on to side. start

you've updated covered you're essentially through XXXX. commentary now think the that I

fuel thoughts we're call addition sort how some way be of are years just your plan plus, purchases X that out frame thinking helpful. you that manage we think of as that -- Or you're this would contracting about the in, it, XXXX of time to see the on forward? any is Just capacity to X about starting announcements going to

Daniel Cregg

is this Dan. Carly, Yes.

be bit about think and have we in talking look depend it So out a time It of as continue not the light day, the way I commercial that right? are little well, the in in what aspects If out be volatile, I more go make at sense. is look frames. volatility a lengthening are ahead and and we the you in time. of we're approach to The to dynamics out could the seeing market to what think the deal deal market to is exactly the some do can commercial end of is there. sensible a going further don't upon But think done go so bit time see right? to there just about, of over overall become referencing that time what striking would the right are you little

So to updates closure. to come as those deals follow

Carly Davenport

Got it.

quick And helpful. just That's Okay. then a follow-up.

customers, earlier Paul's I the When a would on are conversations? data be think is part conversations that incremental? potential having Or those something from op rates. question of you're center maybe kind those of volumes that uprate to with

Daniel Cregg

of the mean, as obviously, in of additionality they the I is of interest are Number aggregate part it. output facilities well. of Yes, interest. is one,

saw as look is definitely there's the the in additionality what would like. overall folks' I you understanding also so interested in deal, facility mind. from think But Microsoft And

the discussion. -- so part And it a definitely a that's is of

Operator

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

Paul Patterson

of cost the a it Is Jersey. offering would the the in everything, the -- and $X transmission of be with associated New it? was way much about et understand issue follow-up commentary the sounds tax of just portion behind in or to that meter that's the with theory to locating being of New in think play that that by pretty is cetera. If I Jersey breaks, like co-location And resolved issue. on sort state Just the tax the

Ralph LaRossa

way think That it. to is the about

Paul Patterson

Okay. any participate the order? know X -- you And in declined then do commissioners you the do have to why

Ralph LaRossa

to FERC on refer recused have they Yes. No, themselves, that so one. back to I'd that we you just know

Paul Patterson

focused part as OPS which BPU been back that sure NJ affordability concerns capacity finally, outlined you very and the I with has what forth about market then today has you about prices. their responding and you're PJM know And of guys been ], making and the is and guys as I'm on Okay. have well. as aware are the letters correspondents you PXs [

what -- prices, a you these getting of by should it of how everything situation, about generation kind do what you voiced have else? of your you which this to through if maybe think and like we're how -- and high LCAP with history we market mind, follow that, when how a I mean, showing that's saying. you guess, see new see And Just and the state by at being up what I seems of regulators consumers don't I'm thoughts generation you, think least and by kind apprehension do go we lot

Ralph LaRossa

what do, customer exactly doing regulators out they regulators state Yes. looking are No, should Look, that's I thing I best can do, think for and Paul. standpoint. a state from the

I a I long-term also balance And might those worry continues think a to -- to what as want trying I to now. line enough years I is about I And XX you signal from worry issue. a issues. tend And place. make will reliability that that both without to they're signal, continues sure this take of generation. tell price will having on this there's I morph, not that's industry to price good that

just just contracts here the pause. to right in to I call, thing So But mentioned reinforce We -- we want get that's comments we've thought I I unit the signals, lot that price was the over period get of way. making earlier We to to is the where I'll solution. RMR you're to right year do and reference detail right. correctly going the treated want it of was behind a of that than and that, think, sure find made longer there's done those the time a right done both then and X

in don't they I think same they're reliability pretty and affordability I And with aligned I So we that's that thoughts have just from ] should. well when standpoint. waiting a -- from [ think standpoint, OPS an the

Operator

this And to to questions further for at the over management like no closing are turn There time. floor remarks. back I'd

Ralph LaRossa

Great. Yes.

today I our with state. Combine help solution us base was long-term solutions Island rates find today of provided was But on take and to to quarter, out case laid just the understand here outstanding reliability down for that standpoint last that and our nuclear megawatt data of for to the reliability I were center and take is for here. financial a couple our plants all on long think term that results that transmission in in the energy to let results efficiency the a FERC the our for certainly the the in just team specifically mutual again, me reliability savings delivered. seconds a of I on out customers in the that of Friday. way. operating achieve light the of the second customers achieved the questions southern from in a the long-term affordable the aid fact units utility rate So of positive only not not and were and co-location output standpoint, put that Artificial handed we very, regulators filing a the specifically area. that both But would of with concern. want support that got that that And from the up a I to decision put of And very respect down $X the the the outstanding from delivered, really context we sets understand focus nuclear that the in in part and hour lose an our we -- in able I sight

to very positive. continue we be So

Looking forward even at all about. on we'll to we things some everybody to spoke those more which speaking give and details time EEI you

to So and thanks calling seeing forward in you for Florida. in look

Operator

this Ladies concludes and gentlemen, teleconference. today's

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

Public Service Enterprise (PEG) 4 Nov 242024 Q3 Earnings call transcript