PEG - Earnings call transcript Q4 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 Fourth Quarter and Full Year Results 2024 Earnings Conference Call and Webcast. [Operator Instructions] As a reminder, this conference is being recorded today, February 25, 2025, and will be available for replay as an audio webcast on PSEG's Investor Relations website at https://investor.psg.com. I would now like to turn the conference over to Carlotta Chan. ahead. go Please

Carlotta Chan

President welcome on XXXX and later LaRossa, Fourth and and today's will Executive Quarter President attachments XX-K press Good slides our IR and Presentation. to website On today. Year for Vice Cregg, Dan Earnings CEO; are Ralph filed CFO. today's Full The and release, posted morning, discussion and PSEG's and our call be Chair investor.pseg.com are at

contain other uncertainties. PSEG's and discussed matters forward-looking earnings call to and statements that today's risks and subject are release estimates during various

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

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

Ralph LaRossa

to us and Carlotta, going thank you, morning the for our forward. Thank XXXX for business you, joining results outlook and this review everyone, PSEG's

$X.XX our share Let's of net for income $X.XX fourth share full XXXX for PSEG the the year. reported with strong quarter per results. of start per and

share For year, share reported of non-GAAP guidance for the XXXX $X.XX range. was results operating top and the at for $X.XX earnings, quarter which per fourth full PSEG per the of our

marked also operating that year consecutive for we or XXth results to guidance earnings non-GAAP the investors. exceeded met reported management's XXXX Our have

that on team it. We are this and continue will proud of build to record our track confident

and for in strategic regulatory also successful are We objectives achieving our XXXX.

prudent maintains and X years and gas outcome our electric favorable for rate all that customers. mitigates settled our variability in balanced profile PSE&G's case we first First, affordability with a investments, recovers distribution

program invest Second, $X.X its X Energy approval X-year PSE&G to Future the upcoming period. Energy Efficiency billion over Clean received in

customer in us has premises increase This make investments statewide program, efficiency a more enable will of reduce at to energy affordability carbon usage resulted second the improve BPU which framework energy and the to reduce meaningful phase to emissions.

$X.X planned on capital infrastructure notably installing program the Third, homes completed we time in and approximately advanced X.X program meters and billion businesses. spending budget, and utilities executed efficiently metering million smart customers' the on

we I'm and for mechanisms very storm of happy stabilizes expense out And deferral the PSE&G's results to case. the This say rates fourth, future customers. implemented and coming new and for pension predictability of financial increases rate

XXXX. customer year X% an rates, represented of about that placed new of annual last effect Speaking the since rates last per base were increase case in our into rate October

of charge for PSE&G $X.XX its commodity Also, therm last October, the per to gas lowered winter XXXX.

The third supply charge January of XXXX. reduction since

a auction to be customer All X. PSE&G's combination. of to recent which and of electric these customer record steps affordability increase satisfaction will the outcome continues bills BGS this results, the reliability, serve June moderate of will valuable

of satisfaction our efforts Mid-Atlantic and want year. for XXXX XX,XXX and moment teamwork all in Consulting We the by were utilities strategic financial over and XXXX. electric residential a recognize large PA I for with take liability among for region individual to consecutive in the thank and employees deliver The recently XXrd #X J.D. in also objectives named received gas East incredible utility award the results. to service customer one the XXXX the Power that

and for X. let's X So starting Slides our turn outlook to with XXXX,

share, earnings operating reported current results. up initiated our $X.XX year, $X.XX is midpoint over have by X% the guidance For which at per at we to XXXX the PSEG's non-GAAP

period. X% non-GAAP PSEG's Our base new year XXXX midpoint X% earnings XXXX credit tax at for to the operating CAGR the production the XXXX guidance nuclear for threshold is to

our revenue unchanged XXXX while than $X XXXX Nuclear guidance that X% also midpoint as note opportunities we PSEG incremental is would of a higher pursue at starts non-GAAP I CAGR, results. this from

billion $X enterprise invest we investments. across by XXXX, plan regulated driven to For

We XXXX to plan. $X.X XXXX billion, from which plan up by capital the spending billion billion also raised $XX.X PSEG's $XX is prior to to

of increase XX efficiency further Please This the previously spending XXXX investments PSE&G on base comprised and XXXX growing mentioned customer largely modernize execute Slides demand, programs. plan is rate at the XX see regulated projections meet for incremental energy that for and to updated infrastructure capital and will the period.

point CAGR capital at continues higher the than period, grows to $XX the upcoming PSE&G is a X-year of over notably This XXXX expected X-year a updated which program billion, is to from that X.X% spending support X% rate starting which XX% year-end balance. approximately base

large been from load new in significant and a has customers. increase PSE&G Something center this data inquiries for year

transmission under Last inquiries. these mature initial XXX-megawatt increase This XX-fold year megawatts, interest last robust infrastructure. over average year. an pipeline The to these existing utility the which in the range, X,XXX grown which time, has over at both of project the and size represents PSE&G's leads totaled this within often leads XXX Today, fit megawatts. is includes can

on to under Approximately XX% megawatts months incorporated of have We business system XXXX in X,XXX lower average. inquiries peak the are forecast. these X PJM's new been responding leads of into

the starting service results X. residential will June earlier, auction the basic mentioned I As raise generation electric bill

growing being by the the need significant power RPM energy new demand generation. the This rise latest driven PJM's capacity auction conducted July, in of last out which for combined is prices increase coming reflects with

on. on Jersey, to pass-through our of increase, New that As across BGS a earn leader PSE&G in still nation the comparison. this other bill not low and of all share profit combined we remain a upcoming with utilities a compares reminder, Even our costs electric wallet does supplies favorably

payment lower income customers still that PSE&G's or of X% take bill customers advantage for low assistance X% our and moderate medium of programs. to about remains at approximately income total even income

PTC continue X% revenue PSE&G meet sufficient nuclear to while PSEG support to X% we growth nuclear & at be threshold Power Turning long-term opportunities outlook, growth to that pursue PSEG's incremental. provides would the Other, to

attract of AI execute earnings to plan the year growth had more to contract XXXX helping hubs contracts have our long-term on economic under visible. in We and our These development made exceptional also in state New business more businesses output our opportunities the and of Jersey. our to doing so, to continuing nuclear and predictable can interest portions an benefit

will enhance benefits operational financial delivering future performance maintaining strength drive and to our making that our These ability excellence. disciplined prioritizes investments our

distinction to supporting key proud Another that ability increase latest the the another X-year we issue PSEG continue or program assets prior through robust even without capital the our with over sell equity plan. extend are to $X.X billion to new need XXXX,

$X.XX Before Directors I conclude, per announced common share highlight in a that to of I share of for dividend PSEG's our to Board XXXX. rate increase recently indicative per annual $X.XX annual want

the now over period, quarter you our financial a turn XXXX to through the to XXth pay results and through us XXth common has to walk long-standing call PSEG's for then consecutive enabled the increase, for outlook dividend discipline for annual is that years. and we possible joined for This made to our the consecutive shareholders a to Q&A. I'll by Dan call commitment XXX

Daniel Cregg

morning, Thank and you, Ralph, good everybody.

Ralph for reported the were the As net per XXXX. $X.XX XXXX XXXX for full of share per of with to full earlier, mentioned $X.XX share income operating for PSEG net $X.XX $X.XX year XXXX. year share income compared earnings for of per compared of per non-GAAP share And

$X.XX per Slides compared X contribution to operating of in operating the and business by fourth the income the XXXX share were XX XXXX. per compared non-GAAP per to fourth per per segment. earnings $X.XX share net share XXXX, XXXX $X.XX and in For in quarter was to share detail $X.XX non-GAAP share of quarter earnings

full business. XXXX. share quarter-over-quarter The and changes and fourth per through PSE&G, you XXXX full per which non-GAAP for earnings in XXXX charts net the $X.XX income and contained with quarter to of Starting waterfall and XX major year reported operating per and year quarter net by the compared X fourth Slides take share share of $X.XX that periods

the non-GAAP and reflect $X.XX the of of per distribution The base implementation in October the results to quarter fourth the were rates earnings XX results impact on Utilities into $X.XX revenues operating driven winter had per of months. of PSE&G electric new fourth went during seasonality rates. effect for XXXX. and share gas gas compared new share XXXX of quarter by

was year recovery Distribution new quarter. for Compared and by the rate of reflects per increased the full share of impacts share due the electric gas and investments. a revenues per margin fourth to from rates margin in quarter benefit $X.XX the benefit fourth will transmission $X.XX a both higher comparisons to case gas XXXX, of of XXXX revenues. of on

$X.XX Distribution was the fourth growth expense. to share to expense of the timing of respectively, compared fourth and interest quarter XXXX, to share, expense O&A per continued compared and and per primarily $X.XX XXXX, higher interest $X.XX investment favorable reflecting share in quarter per due Depreciation rose by the spending. of

the XXXX, $X.XX a nets timing annual year income $X.XX taxes OPEB effective X to credits, resulted favorable Lower lastly, full related per and And unfavorable a comparison to quarter. over taxes share to the the in in of which recorded the resulting pension which through had cessation in impact from year of XXXX. and per net compared share earlier fourth quarter an of the rate, OCA ended tax other

interest than XXXX. higher PSE&G in quarter, by as and case from infrastructure heating energy quarter XX% offset as expense investment cooler for year, investment higher efficiency replacement higher partially but fourth days, depreciation by than degree full And increased of fourth warmer rate earnings was the Weather the X% results reflect normal, during balances. and well from the measured as the

impact minimal incentive PSE&G's as weather mechanism promote know, margin the you positive of conservation the on of the impact program. or because energy variations gas other and electric helping a limits utility mechanism. negative, sales have variances program, or PSE&G widespread And sure its adoption on efficiency CIP while margins of This decoupling I'm weather and

is plan On year and as the fourth electric the approximately our $X.X on X% IAP, well in spending, quarter. Under capital ongoing and higher electric our our mile than And gas PSE&G by $XXX based of slightly margin, billion the spend during number the reliability and each as invested Energy for in Strong $X.X mentioned, programs. of the efficiency $X.X full including infrastructure billion what spending million execution programs, drives billion last system segment approximately energy or XXXX. grew customers our the Ralph original replacement gas capital our XXXX, CIP, as continued of totaled spending

prior $XX by capital in investment infrastructure modernization, $XX regulated of energy reliability incremental our demand X-year efficiency For driven to approximately invest our to existing plan focused investments $XX amounting through forward PSE&G's CEF billion on under to investments infrastructure investments resiliency billion rolled regulated and We've meeting $X.X program. increase $X the and billion and billion. in $XX to we EX initiatives. electrification billion XXXX and plan billion is XXXX, compared regulated to growing plan The programs

$XX approximately compound to from work the produce of expected XXXX. of same a increase growth regulated and in is billion, over X.X%, Our Ralph XXXX number in construction to of mentioned, to annual rate including for starting XXXX as XX% XXXX progress plan base rate year-end capital an year-end is investment X% base approximately

Other. Moving to Power and PSEG

reported For in net operating Non-GAAP compared the in earnings income quarter $X.XX Power XXXX, a to of of PCEG $X.XX earnings operating fourth the quarter fourth of net fourth the of of compared & for loss quarter to fourth per share non-GAAP XXXX. Other of per share $X.XX the were share XXXX. per share quarter $X.XX a loss per

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

half gross a the in margin As XXXX's of of the underlying the anticipated, significant year of the portion we based second upon our shape over hedges. increase gross XXXX during the realized margin

unfavorable expense OPEB $X.XX and income reflecting was unfavorable. fourth incremental share credits rates were at the was per quarter O&M share of lower versus and higher, $X.XX share $X.XX XXXX. higher per per pension Interest debt

compared Taxes year per share earlier and were other $X.XX quarter. favorable to the

full the side, hours nuclear quarter during for of quarter terawatt approximately operating capacity XX% running on activity. at fourth approximately some factor and recent produced terawatt the at approximately X.X financing a the Touching XX% year the On full the year, and XX hours fleet for respectively.

from Through below hand. level, had PSEG the well of including the liquidity the $X.X XXXX, of of December, cash was total collateral. million XXXX billion, is strong though cash return operations $XXX substantially of cash end approximately December of which on helped As by available

medium-term December rate of as position. cash supported PSEG for Power million new flow. strength $XXX or X.XX% into strong upon our by secured supported its the of loan November, notes, repaid variable million, XX, in PSE&G liquidity $XXX And XX, maturity. Our collateral MTNs, approximately which balance a XXX-day entered of was $XXX Last million, its cash December term

of extend X-year agreement And position which had the with end of the rate, XXXX, maturity Power to billion during to our billion fixed also upcoming At fluctuations billion Power cash amended existing loan from in debt rates mitigating to year. interest of March December, its June a $X.XX XXXX. variable through XXXX, manage just PSEG swapped rate in term March $X.XX outstanding $X.XX the of helps

swaps, total debt level our to of have rate at of just a given variable X% continue debt, And we low approximately year-end.

Looking the provides X-year sell consistent spending CapEx. ahead, opportunity supports execution capital our for and sheet the need dominated plan regulated to Without assets, for dividend or the equity of balance solid PSEG's by and growth. sustainable new

a Recall before conclude those driver in a new the of for the will over of let's effect full year. The Also XXXX produce in my a that of X. seasonal year. most distribution Now quarter this impact new are drivers base seasonality from electric remarks, is Slide impactful rates the rates I will which peak third similar year. and play outlined some for fourth earnings for on note, into implementation quarter review base projection the full be gas XXXX, comes the of a

expense, addition, positives and investments energy to margin. the O&M, related expense these the XXXX offsetting higher interest balances parent In CEF maturities also are GSMP, cloud-based interest and reflecting IAP, investment PSEG or II and well costs. interest will recoveries higher current Power utility infrastructure program refinancing add efficiency as higher at management PSE&G of for program, depreciation higher to as Partly in at

refueling work the extend Nuclear, its New the of At the creep cycle by X XXXX. emission reminder, our XXXX in certificate will extension has a the scheduled amounts units months XX unit fall a include as Hope will in conclude nuclear owned repealing of for our scheduled set to earned fuel of And Jersey next for PSEG that XXXX. May XXX% fall nuclear

our our our carry delivered per year exceeding operating the X% results. year XXXX row we at guidance, full XXth XXXX that meeting to a and $X.XX confidence earnings in guidance share, we over midpoint or approximately closing, to In $X.XX non-GAAP of forward higher of

starting We operating XXXX, also extended the X% X% with non-GAAP to XXXX through year. as our CAGR earnings base

That continuing provided Nuclear, we've begin As PCG based relative CAGR long-term the incremental revenue to concludes we're that which enhance Ralph range we formal ready mentioned, pursue that to the at on growth remarks, our to session. could are opportunities and PTC. the question-and-answer

Operator

with comes question from of Instructions] the Pourreza Partners. [Operator line The first Shahriar Guggenheim

Shahriar Pourreza

with around sort the starting discussions the So structure, just, ambitions? recent Island, commercial potential with the given FERC? actions at on of timing, any behind-the-meter Artificial sense of the see Ralph, the being off governor's especially deal side nuclear do Does of the meter? opportunities like you side And delayed on complexity changed deals, the

Ralph LaRossa

Yes. Thanks, Shahr.

wind for New He give alternative I a port But going for. the would comments that you wind to looking Development that. about say at some I'm just they're -- well, that on let their on governor, and since uses details made So Dan has mentioned that front. the Jersey specifically this Authority Economic you few

just that's out. to want one So point thing that we

and governor a mentioned uses that has call also that at they're recent show for it. has alternate looking The in he

Dan, of piece. we'll kind the from for put there's And we timing know look us that to on these governor the far -- And New generically you you kind some the that's standpoint that together. interest so pursue end. standpoint the So address continue pieces hit opportunities. to back issue from as of as And and Jersey upfront those to

Daniel Cregg

Yes.

really Shahr, I think, is fairly our messaging there consistent.

we've see continued interest. think I to

strong. with elements to interest and continue what talking of We that parties for discussions have multiple we're about, various remains

think I well. you touched as FERC So on

from that, throughout we to that and be I we they great what details you do to think what think for complete wait what directionally, said got been favorable I FERC don't said, some. But flexibility expected do those it written. and have to while that necessarily for I to yet everything to was know would are answers have want the

respect really related to So messaging happens consistent we'll is on to there, with nuclear. what continue to but our I think what's going see

Ralph LaRossa

the their timing on get of FERC that. is And just clear there here. on Shahr, to a the pretty from need at was to reinforce a solution aggressive, FERC, to full The message glass and it

as So place different offload there's still been of and could potential we opportunities took solution is have one in for there. the in front still positive. the certainly We that a least behind the a at meter other meter

Shahriar Pourreza

Like fair X I negate that gigs. inquiries just in the island Island That's the a completely PSE&G it's the with artificial separate or highlighted, towards Artificial you PSE&G then point. just the with counterparty Ralph. kind of over the highlighted? shift of appreciate chance island of I any conversations other does sure, that, PSE&G make And just words, potential that from the deal front pipeline of want any and meter to opportunities? Does artificial is you a opportunities

Ralph LaRossa

Yes.

message X,XXX things centers I the not, load. are plus which includes large on still centers. believe electric the taking clearing So data besides there seeing or vehicle that place. other megawatts, think And data were some We we're it interconnections a large was

So it's items. a number of

that X I That's standpoint, sure, a megawatts first think data interest there is that see of up. to showing want X,XXX from though, when in Jersey you all, showing New request takeaways, make is from up. a center the there's we industry

that's in working. Brunswick. going this they're announced a Jersey, in one. Nokia, area been Bell New state's New number the And of they've marketing They've part that be is just has So announced part Brunswick, Helix to got labs New X their in that

So to continuing. we place of are are taking forward momentum the just there's taking hold, number that the and a efforts look

Operator

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

David Arcaro

what structures going is now. to I changes if me of auction a recently. from outlook be you're Are getting wondering structural thinking navigate for there PJM change? the maybe relooking how market could has both I customer the could guess for was changes nuclear been lot underway how your fleet? And of PJM a comment impact do you and auction you the possibilities FERC here? number about at see. and of attention that Let are a on

Ralph LaRossa

Yes.

the will addressing the targets off setting impacts to in customer and keep an the there. standpoint, everything very think we a are Well, PTC from that specifically about help down -- our our is from our power I way We've by So of all costs standpoint. we been customer X. do affordability clear

that. will We done have -- we

on We behalf. will that continue to advocate

of know know we've market don't or premise is the for talking market just the I I PJM some not there a anymore, if valid whether question don't time. because is the that PJM to been of and quite

So the concern mostly standpoint. from is there construct able, generation be reliability Are to PJM a this whole. to a my in region as going we to attract

us. And to areas. are if it everything questions the customers' reliability affordability so, on on going timely for behalf for we're at a the fashion So It's is going and region? have of in in keep on advocating focused in we And enough both those going to be that really hand. those

Daniel Cregg

Yes.

think bit, add just David. little I a on that to to

elements right. really that vital those are going and I And for to longer-term get are that be still it's the adequacy, think important be resource work to I there. to think done there's

can little couple to the more for collar think extent going a that being term, as bit for forth it are you give a turn in up the pricing things to of ends out. put where stability near to years, I this

basically what financial is to a again from floor. putting back that go first PTC I we're standpoint comment But Ralph's out the

resource that potential below if I things one floor job is move there, But adequacy, right? some that could is that, it be for to there us. above think the that, getting benefit moves So extent

David Arcaro

adequacy I outlook I be somewhat Yes, market. all resource some lowering interest the large these appreciate there been looking for being new broadly looking is helpful. deterrent construct customers auction perspective would the And with the and customers? from broadly the There's -- of that new new color. maybe for Any maybe challenges PJM load in in market. changes ahead guess, levels at considered the customers, that at you seeing absolutely. these the Are I related, uncertainty the for guess,

Ralph LaRossa

the data in megawatts increase you of Yes. Jersey to to we from interest I remarks, in load point and New X,XXX the No, where back XXX, the prepared talked I'd alone. think, large about megawatts

So New other jurisdictions. I for still certainly, in remarks. uptick in we're that really Jersey, can't seeing those that reflected But we the talk

Operator

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

Nicholas Campanella

if want Or FERC? you deal terms on for just I in And line in a just large a waiting be of it still think of then just able What's the point? on fleet, waiting time is end load more customer to the bringing earnings as a can for commercial about kind put just really dated question of towards time Or to are that to the we point the the is follow-up affect maybe a was at facility? state line, nuclear that ramp? to finer for And forward the watching is Shar's decade? the connect and this this later XXXX?

Daniel Cregg

can out are that think now. to flexibility work that where of goes. we're Yes. anything Nick, think I that anything with with the waiting on work I the Fork, to right think respect continuing respect we of not think that there on we're we're of some not what in I the and details But state, to state standpoint either and to the I may there's the waiting from come continue ability be

XX might something did. they XX that will even We're the that more didn't seem definitive But they think days, though in -- some say coming understood expectation FERC. was on it's to I interesting. we days they by there clarity we what and of I that what did another do get have some out highlight see urgency complete they said

anything. continue forward, I it's think not as be urgency go So that will helpful we but to stopping

some details of add done, standpoint it some flexibility. as may the things to be some final how from can think I

Nicholas Campanella

the customer, is impact ramp just something it on that? just you these longer -- dated data plan? than X-year to wondering, up, the this can ramp I'm then And is the it -- for take think like just time more does the it like. Okay. centers Or I that seems outlook for guess, a And

Daniel Cregg

Nick. quicker Yes. power a of that bit ways, could exists I of what that center build longer. going to couple to sale would for to needs somebody a a it Think about extent there to, different to to happen the the something then data flow is the in it's little extent that take that say today,

depending where upon the line. things to nature I the and the things of something a going think go, there's might working that's as that you timing of So to dictate we're couple see along towards, when

Nicholas Campanella

then the I just that. Okay. auction appreciate capacity following up And on commentary.

Just wanted to and try your how gross impact to you understand the if near we calculation kind to XXX are kind of the of receipts that out continue where to level, clear does 'XX range? in

Daniel Cregg

Yes.

cone, at I in then go market have And going the So energy. of time, the lay you're goes. which that out least net hedging a of in set, based is net standpoint it. would remind take it's as look that upon capacity you're to going say of how I'll to of from in a and on to place capacity is auction the you top what's price at you formation where the structural

I that you price do rise, capacity. price the one should the prices opposite other in energy the as react see And think being and direction,

up, saw we that saw prices. we last the saw of we clear in decline temporary a So when some energy go

a relationship is there. there so And

upon the clear think range or out us you would time, the move within And move you and up. going I upside energy going markets higher, We we stability that should to was go, the range in I results for were But depending I I is are I the the above go. to to looking to where in to important about really right? is of saw the it have think were of how that the think increases that be and that you and floor. extent to that if you us that the higher comfort you thought there extent think

Ralph LaRossa

make, would the to not floor. calculations an you those is there's only adjustment inflation to in forget -- that that thing don't And I that add

the of I in out which cross impact So was where think those your and root will . -- that the question. lines years,

Operator

is question Faiman. with line next of Paul Our from the Fremont Ladenberg

Paul Fremont

color sort guidance XX% Great. where PEG you on at I can you I normally, guess, first at right how be for think you guess, versus year. give sort Power you of that this us have question, are -- any should about has we past of would now? What -- hedges

Daniel Cregg

Paul, to the a of uncertainty try we're and try we of going said forward order a results, what balance to do our understanding seats what that existing definition to we have in that make that grocery we've PTC have floor. have done way the minimizes sure done in is risk of that we

tell would what standpoint shifts radical a back not that of when in I resulted has kind you hedging had directionally more the What is ratable. of from of would those we percentages have been X-year

upon what the want point, in a your think based in have about approach. ratable to is more you we 'XX So somewhere maybe 'XX told 'XX to being if you 'XXs would and X/X and and and X/X

made that approach. radically being very of don't to I we've different while than some And ratable movements think as that, the

Paul Fremont

done And why a and net you guidance for a income breakout this of of Peg I then guess used to that not other. year? there you've sort Power and utility Is Great. reason provide the between

Ralph LaRossa

It's utility. leaving we with year it change and the think consistent -- at a X or made We've I just we're that about back, that. comfortable been enterprise Paul, level. pretty

or level. but range, So at in discussing enterprise . we're comfortable give the this take that

Paul Fremont

on of Nick's capacity continue? prices that follow-up The you the And to gross to then margin auctions provide question. sort includes that just the extent sensitivity

Ralph LaRossa

not there's a if in there. I'm question sure

Paul Fremont

per give other megawatt as we Does hour -- sensitivity? $X that should $X auctions? hour per is, words, question you The megawatt equivalent include the in of capacity the

Daniel Cregg

Yes.

see to fixed to that's think. had variablize the that price that And for an way as hour. the you a you think I But about would megawatt yes, yes, all-in charge. right

Operator

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

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

Paul Patterson

that sort the of about the timing that the order actual you. that question So in sorry, does and what noticed I think what the mean But actually on just -- original have reiterated to on colocation. the mean when of back language I to come out? terms chair you back might Friday the the

Ralph LaRossa

Well, thereafter. they out their want I it to come they take and at have said value shortly face to

think the out statement. that it last came I was words in the

consistent guess mean on could been I pretty do. shortly they've said So I delivering they're think in we means. what going But what to they've

if So beyond is XX that's be the to I it taken. expect that wouldn't days that much

Paul Patterson

for, basically also potentially all you. a have of just I longer-term or or I'd something looking activity, And and I market might as lot lot and -- being thoughts the to then a have just was lot It's obviously just to a apprehension, what terms -- you you discussion of anything something? think what of what and interesting said Or that what what in setup pricing lack a mean your "market" you'd of of what Do this it? maybe PGM there's in out how come about you the is terms of that the be I mean, curious might are evolve? about of share might like might reliability Okay. thereof. it examination think, you something about be of

Ralph LaRossa

think state policies of state I it's and in you're is. going Well, what what that upon to depend economic the

Pennsylvania. in hear being certainly positions taken You certain

to You I being see taken positions specifically just other states. talked New in Jersey.

answer now the are do nuclear, the I of law think standpoint. I at Edeka, utilities which here We involved forward. And best is New all move crossroads. business. PSC to right generation that We land the to involved side the clear it. in And a is think right generation in But figure gene way the a from process. there's now, of which we're have the don't not on have trying out is a Jersey

state. So affordability in policy that certainly need X continue decisions to that run for I customers to to we it's stated discuss made the and being the But something reasons the we reliability. front are don't want any for upfront,

Paul Patterson

idea Absolutely. Any when a or see we proposal of might anything? something

Ralph LaRossa

that people on think have Yes. New that There's Paul, trying about here the honest coming through do as try company some out, to and I this, what probably . master different administrations to right? of bridge So of be State is decisions that could help about in think energy but opportunities pursue. think we're some to the New educate I plan Jersey, issue are all there made be will to talk to look, Jersey a continue it everyone

Operator

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

Carly Davenport

thanks to on Maybe color the all regulated far power one on put the for the train to from there. Sorry the side. me so Paul just a stop But side.

itself Just filing. kind after GSMP that GSMP III the expect in 'XX then already plan are of runs the there plus? that upside to on And you would this in the Do to extension assumptions of quarter? revisit still out? II Or baked kind be

Ralph LaRossa

simple starting are it have those the in to we both Carly, conversations, those plan is and answer Yes, the things. is to of

that So continue. expect business we our work part to that core activities is something and of

have conversations So started. those .

Operator

line is from question the Zimbardo Next of Paul Jefferies. with

Ralph LaRossa

Back on train. Paul the

Paul Zimbardo

train on hopefully, hear . me, you Can the we're

Ralph LaRossa

it. got got We Paul. We it,

Paul Zimbardo

go. Yes. not but a we up bit There follow sheet The just the on side. I is always to little neighborhood the best, on balance reception want --

increase. was CapEx throughout you the outlook the in XXXX the So I with actual FFO the no and equity even what the where walk debt metal plan? Could us kind credit the envision you do of to saw additional

Daniel Cregg

I for have don't years. few jump next out, to look that pull putting I when be forward at the the so my you'll fingertips, the Paul, continue that. comes won't guidance forward But as we and Yes. think forward-looking as I K and we we're that together able

exactly is did within say that what gives from we to and remarks. be are continue range the We a comfort it say place in reason us our good in the that perspective, prepared to pretty mid-teens which

Paul Zimbardo

a I'll per in I there indicates any response the market. takeaways Jersey high participate do a $XXX to kind supply of looking with And know thoughts to your at that shifting without kind on your look that or very megawatt on or bit zone day not the to you of up the little of just Okay. is then one. what fleet. basis, it robust results was industrial BGS, But customers? back X-year going like a Got could for New that unregulated almost on dollar in commercial -- it. follow that

Ralph LaRossa

Yes.

the to BGS, think, that were I around XXs, last are were, first we in of the think that all have in that there certainly numbers these were are published. of the that up generated in, opportunity were other And Paul, the resort and shop. residential in ones are right? state So that rates customers provider I XX% by all, So that

customers something working and get expect to happen them But out energy we're program I payment on for efficiency that to for access also lean is gain BGS, third-party would then those continuing it the to relying customers which some from in have those message efficiency to energy from of from helping programs. standpoint, assistance are suppliers. our on that and that we a on certainly and

I the Jersey, state. not the the of as what are pieces it some in us those would to areas as So high but higher means we say but other are in X that state New

Daniel Cregg

Yes. providers. on we element pass-through increase we that's to BGS that just is happened And seeing contract, that from a the the the profit biggest not coming the related that I supply auctions something mean that are the that coming reminder from PJM. from to

more probably that I think the to shopping. same in the And day, to back prices had going do that the are think end in go auction. higher . at providers well, last But so some which have see of to interest you I the will

Paul Zimbardo

like display there to a and let's megawatt $XX so clear And Okay. commercial for just industry clarify, PSE&G. day that

have you Just that? thoughts if on any

Daniel Cregg

going shop still Yes. supplier the is going just it's think to And same I the from I think different same them. ability a base exist calculation mean coming to there. with to I

well. going So I you've that's that sector within . on a got parallel dynamic think as

Operator

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

Anthony C. Crowdell

the know you're Just and a it whatever. don't PGM making doesn't if of I you maybe about quick the to follow-up said exist comments or market kind Paul Patterson

long a State what's reserve And the Or New mark? have Jersey net you there? reserve is if a in position margin Just do so, generation? on the of

Ralph LaRossa

Yes.

So the state of New resource Jersey does plan. an not have integrated

a you the out some state a peak the of than is quote New anybody there, the that's So So but net not information Jersey Jersey we right? there's can are New set at look of reserve if you on days. margin short, for importer, especially

margin question last were we look about target and conversation where that which we we does still generation is is, margin move X% reserve additional as in, has the saw we the get what to, the comes -- do The need this the keep where adequacy than and load numbers So resource right? for had -- to more was, to having. their PJM I and

Daniel Cregg

Right.

So when it, net as Ralph the said, lot year, matters to importer. peak talking seasonal. It we different you . a off-peak going are but across times than be is are a about

Anthony C. Crowdell

just that adequacy need states options you gone thinking should maybe state and the -- other is I Obviously, plan. be question. you pulled got think load, to acronym, the Or the could But a resource similar that the maybe FRR is something of one multitude of the different? I've is it options generation we a the or that of have said just One maybe like out about face?

Ralph LaRossa

we there. that's were Yes. in And that count and that's No, The the that the state to paths, a XXXX different right? referring that time I is could state absolutely in consider, on could go something back believe the place. keep Deca back that's in rules I put out -- the deregulated when of bunch PJM, right? but we the And from market frame

market a not I'm of say and a factors. been kind I influenced by It's when what has about it that number is. sure market So of by

to trying a balance and reliability And market, free and a that's they're to so with affordability do. tough thing

state goes. to participate get we're something because in we've that, to as it banging we where keep a it New So that But certainly of going desk market. Jersey right got see the standpoint, it's we'll about from

Operator

you. the like comments. Mr. closing to Thank for I'd floor LaRossa turn . to back

Ralph LaRossa

Well, thank you, Rob.

think potential a minute in to it and sight don't conversation lose that was areas. do centers so of we forth. and multitude of day job of on work in be, and a And nuclear lot that's I where was a the the we lot -- we that I a good data So in all out, look, about for XXXX. so to completed But day expected want X back had which of on fantastic output shows the and up in

forward thank you seeing Thank Thank So to . And the you. we roadshows. one you. on look of Thanks. you.

Operator

and Ladies concludes teleconference. gentlemen, this today's

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

Public Service Enterprise (PEG) 25 Feb 252024 Q4 Earnings call transcript