PEG Public Service Enterprise Group Inc

Public Service Electric and Gas Company (PSE&G), a subsidiary of Public Service Enterprise Group Inc. (PEG), along with Matrix Development Group completed installation of two solar rooftops at adjacent Matrix-owned buildings in Perth Amboy, New Jersey. The two 2.8 megawatts (MW) systems are built by enXco and are a part of PSE&G’s Solar 4 All program.

The two solar systems comprise 10,395 crystalline solar panels and cover more than 217,000 square feet of roof space. The panels are connected directly to the electric grid for the benefit of all electric customers. These solar rooftop systems have the capability to produce solar electricity that will power about 470 average-sized homes. 

The Solar 4 All program is a two-tiered approach that is intended to develop 80 MW of solar power over three years that will be enough to serve about 13,000 average-sized homes.

The program's first segment consists of installation of up to 40 MW of highly distributed pole-attached smart solar units in PSE&G's electric service territory while the second segment focuses on 40 MW of centralized solar facilities, such as the Matrix system, installed on PSE&G owned or leased properties connected directly to the grid thus benefiting all customers.

Besides the Matrix site, the Solar 4 All program has also built 2.7 MW solar systems on the grounds of five Newark Public Schools and a 1.7 MW roof solar system at a warehouse in Bayonne. Additionally, the companies have installed a 0.9 MW system on the roof of PSE&G's Central Division in Somerset, New Jersey and a 0.7 MW system at the Edison Training and Development Center, which includes roof, ground, carport and pole-attached installations.

The utility also has four large ground-mounted solar farms in service on PSE&G-owned properties. These solar farms are located in Yardville, Linden, Edison and Trenton. The Solar 4 All program is meant to spur economic growth in New Jersey, create jobs as well as economically increase the state’s renewable energy capacity.

Public Service Enterprise Group’s robust portfolio of regulated and non-regulated utility assets offers a steady earnings base and significant long-term growth prospects. The project represents a significant step forward for New Jersey in helping to achieve the state's goal of being a recognized leader in the renewable energy arena. Moreover, the company remains focused on operational excellence, financial strength and disciplined investment.

However, the increasing cost of coal, higher pension and financial costs, power-price volatility and challenges from the Internal Revenue Service are areas of concern. Based on these factors, we retain our long-term Neutral recommendation on the stock. The company also presently retains a short-term Zacks #3 Rank (Hold).

One of the company’s primary competitors, FirstEnergy Corporation (FE), reported its first quarter 2011 pro forma EPS of 69 cents versus 81 cents in the year-ago period. Public Service Enterprise Group is expected to release its first quarter 2011 results on May 5, 2011. Going forward, the Zacks Consensus Estimates for first quarter 2011 and fiscal year 2011 are currently at 76 cents per share and $2.64 per share, respectively.

Public Service Enterprise Group Incorporated, based in Newark, New Jersey, is a diversified utility holding company. Its operations are mostly located in the Northeastern and Mid-Atlantic parts of the U.S.

 
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