NEWARK, N.J., April 18, 2017 /PRNewswire/ -- Public Service
Enterprise Group's (PSEG) success in adjusting to changing market
dynamics and customer demands has produced strong financial
results, PSEG Chairman, President and CEO Ralph Izzo told shareholders at the company's
annual meeting, held today in Newark.
Izzo outlined the company's $15
billion, five-year capital spending program, which will
upgrade the company's energy infrastructure. This program includes
spending $4.7 billion during 2017 to
improve the efficiency and reliability of the company's utility,
Public Service Electric & Gas (PSE&G), and its wholesale
generator, PSEG Power. This capital expenditure represents a record
amount for PSEG to invest in any one year.
Izzo said these investments are being made as the utility
industry is evolving due to the low cost of natural gas, the
continued growth of renewables and changing customer demands.
"In response, we have increased investment in our utility and
regulated assets, increasing PSE&G's percentage of our 2016
earnings," Izzo said. "Today, the utility represents more than 60
percent of earnings, and its share is forecast to continue to grow
this year."
Izzo told shareholders that the company's strategy and the
strength of its financial position successfully delivered
double-digit growth in rate base and earnings in 2016 at
PSE&G.
"Our results once again reflect the strength and stability of
our business model," he said. "We are executing well on our capital
investments, to the benefit of customers, shareholders and
New Jersey's economy."
Strong financial performance has also allowed PSEG to steadily
increase its dividend. In February, the company raised its
indicative annual dividend to $1.72
per share for 2017, from $1.64 per
share in 2016. PSEG has now paid dividends for 110 consecutive
years – putting it among a select group of companies.
Significant utility investments include the Gas System
Modernization Program, which replaces aging cast-iron and
steel gas mains, and the Energy Strong program implemented after
Superstorm Sandy, which fortifies PSE&G's electric and gas
distribution systems against the next damaging storm. In October,
the New Jersey Board of Public
Utilities approved an $80 million
extension to PSE&G's Solar 4 All program, allowing an
additional 33 megawatts of solar development on landfills and
brownfields. Utility investments account for more than 80 percent
of PSEG's planned capital expenditures over the next five years.
The utility's investment program is expected to yield 7% - 9%
growth in rate base through the end of the decade.
Growth of the utility is offsetting the challenges to PSEG
Power, which are primarily due to falling electricity prices, Izzo
added. The company is monitoring the impact lower wholesale
electricity prices, resulting from persistently low-priced natural
gas, are having on the finances of the company's nuclear
facilities.
"Our management team is committed to the continued
implementation of disciplined cost control at these facilities and
advocates for policies that recognize nuclear power as a source of
safe, clean energy and an essential piece of a diverse, reliable
energy portfolio," Izzo said.
To read the speech in its entirety, please click here.
About PSE&G
Public Service Enterprise Group (NYSE: PEG) is a publicly
traded diversified energy company with annual revenues of
$9.1 billion. Its operating
subsidiaries are: Public Service Electric and Gas Company
(PSE&G), PSEG Power, and PSEG Long Island.
From time to time, PSEG, PSE&G and PSEG Power release
important information via postings on their corporate website at
http://investor.pseg.com. Investors and other interested parties
are encouraged to visit the corporate website to review new
postings. The "Email Alerts" link at http://investor.pseg.com may
be used to enroll to receive automatic email alerts and/or Really
Simple Syndication (RSS) feeds regarding new postings.
Forward Looking Statements
The statements contained in this communication about our and our
subsidiaries' future performance, including, without limitation,
future revenues, earnings, strategies, prospects, consequences and
all other statements that are not purely historical, are
"forward-looking statements" within the meaning of The Private
Securities Litigation Reform Act of 1995. Such
forward-looking statements are subject to risks and uncertainties,
which could cause actual results to differ materially from those
anticipated. Such statements are based on management's
beliefs as well as assumptions made by and information currently
available to management. When used herein, the words
"anticipate," "intend," "estimate," "believe," "expect," "plan,"
"should," "hypothetical," "potential," "forecast," "project,"
variations of such words and similar expressions are intended to
identify forward-looking statements. Factors that may cause
actual results to differ are often presented with the
forward-looking statements themselves. Other factors that could
cause actual results to differ materially from those contemplated
in any forward-looking statements made by us herein are discussed
in our Annual Report on Form 10-K and subsequent reports on Form
10-Q and Form 8-K filed with the Securities and Exchange Commission
(SEC), and available on our
website: http://investor.pseg.com/sec-filings. All of
the forward-looking statements made in this communication are
qualified by these cautionary statements and we cannot assure you
that the results or developments anticipated by management will be
realized or even if realized, will have the expected consequences
to, or effects on, us or our business, prospects, financial
condition, results of operations or cash flows. Readers are
cautioned not to place undue reliance on these forward-looking
statements in making any investment decision. Forward-looking
statements made in this communication apply only as of the date
hereof. While we may elect to update forward-looking
statements from time to time, we specifically disclaim any
obligation to do so, even in light of new information or future
events, unless otherwise required by applicable securities
laws.
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SOURCE Public Service Enterprise Group (PSEG)