NEWARK, N.J., Sept. 27, 2021 /PRNewswire/ -- PSEG today held
its 2021 Investor Conference to provide the investment community
with a strategic and financial review and outlook.
Ralph Izzo, PSEG Chairman,
President and CEO, presented a future PSEG with a 90% regulated
business mix following the close of the sale of PSEG Power's Fossil
assets, expected later this year or early in 2022. "PSEG is
already a predominantly regulated company with contracted,
zero-carbon infrastructure investments and a strong set of growth
opportunities. The stability and predictability of our
business continues to improve, driven by a long runway of
investments at our best-in-class utility, Public Service Electric
and Gas."
PSEG also announced that it is increasing the 2021 to 2025
Utility capital spending program by
$1 billion, to $14 billion to $16
billion, which will strengthen PSE&G's rate base
compound annual growth rate within the existing range of 6.5% to
8%. The incremental planned expenditures at PSE&G will
focus on last mile electric system modernization, through a planned
investment proposal called the Infrastructure Advancement Program
(IAP), expected to be filed with New
Jersey regulators in the coming months.
"Our five-year capital program continues to position us to make
meaningful progress in combating climate change with our
award-winning, $1 billion Energy
Efficiency programs, the methane reduction work of our Gas System
Modernization II programs, and advancements in the electrification
of the state's transportation infrastructure," said Izzo.
PSEG presented its compelling ESG credentials, anchored by its
recent announcement to accelerate its net-zero climate vision by 20
years to 2030. This announcement is consistent with PSEG's
Powering Progress vision of a future in which people use less
energy, and that energy is cleaner and delivered more reliably than
ever.
PSEG's financial strength is enabling the anticipated funding of
an expanded capital expenditure program through 2025 without the
need for new equity. PSEG's improved business mix has also added
stability and predictability to our financial profile, along with
greater financial flexibility. As a result, PSEG announced
several significant items, including:
- initiating 2022 non-GAAP
Operating Earnings guidance of $3.30
to $3.60 per share, exclusive of
results from Fossil
- establishing a long-term, non-GAAP consolidated Operating
Earnings growth rate of 5% to 7% to 2025, based upon the mid-point
of our just issued, 2022 guidance
- raising the indicative 2022 Common Stock Dividend by
$0.12 per share, signaling an
indicative 2022 dividend of $2.16 per
share beginning in the first quarter of 2022, with declaration of
dividends subject to approval by the Board of Directors, and
- announcing a $500 million share
repurchase program to be implemented upon the close of the Fossil
sale
PSEG today also affirmed its full-year 2021 non-GAAP Operating
Earnings guidance range of $3.50 to
$3.65 per share.
In August, PSEG announced it had agreed to sell its PSEG Fossil
generating portfolio for approximately $1.92
billion to subsidiaries of a fund controlled by ArcLight
Capital Partners, LLC, advancing its position as a clean energy
infrastructure-focused company. PSEG's exit from the fossil
generation business accelerates its transition to a primarily
regulated and contracted business, with a zero-carbon operations
and infrastructure investments platform.
Public Service Enterprise Group Inc. (PSEG) (NYSE: PEG) is a
publicly traded diversified energy company with approximately
13,000 employees. Headquartered in Newark, N.J., PSEG's principal operating
subsidiaries are: Public Service Electric and Gas Co.
(PSE&G), PSEG Power and PSEG Long Island. PSEG is a
Fortune 500 company included in the S&P 500 Index and has been
named to the Dow Jones Sustainability Index for North America for 13 consecutive years
(https://corporate.pseg.com).
Non-GAAP Financial Measures
Management uses non-GAAP Operating Earnings in its internal
analysis, and in communications with investors and analysts, as a
consistent measure for comparing PSEG's financial performance to
previous financial results. Non-GAAP Operating Earnings exclude the
impact of returns (losses) associated with the Nuclear
Decommissioning Trust (NDT), Mark-to-Market (MTM) accounting and
material one-time items.
The presentation of non-GAAP Operating Earnings is intended to
complement, and should not be considered an alternative to the
presentation of Net Income, which is an indicator of financial
performance determined in accordance with GAAP. In addition,
non-GAAP Operating Earnings as presented in this release may not be
comparable to similarly titled measures used by other
companies.
Due to the forward-looking nature of non-GAAP Operating Earnings
guidance, PSEG is unable to reconcile this non-GAAP financial
measure to the most directly comparable GAAP financial measure.
Management is unable to project certain reconciling items, in
particular MTM and NDT gains (losses), for future periods due to
market volatility.
Forward-Looking Statements
Certain of the matters discussed in this report 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 constitute "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
filings we make with the United States Securities and Exchange
Commission (SEC), including our Annual Report on Form 10-K and
subsequent reports on Form 10-Q and Form 8-K. These factors
include, but are not limited to:
- any inability to successfully develop, obtain regulatory
approval for, or construct generation, transmission and
distribution projects;
- lack of growth or slower growth in the number of customers or
the failure of our Conservation Incentive Program to fully address
a decline in customer demand;
- any equipment failures, accidents, severe weather events, acts
of war or terrorism or other incidents, including pandemics such as
the ongoing coronavirus pandemic, that may impact our ability to
provide safe and reliable service to our customers;
- any inability to recover the carrying amount of our long-lived
assets;
- any inability to maintain sufficient liquidity;
- the impact of cybersecurity attacks or intrusions;
- the impact of the ongoing coronavirus pandemic;
- the impact of our covenants in our debt instruments on our
operations;
- adverse performance of our nuclear decommissioning and defined
benefit plan trust fund investments and changes in funding
requirements;
- risks associated with the timeline and ultimate outcome of our
strategic alternatives relating to the completion of the sale of
our fossil generating fleet;
- the failure to complete, or delays in completing, our proposed
investment in the Ocean Wind offshore wind project, or following
the completion of our initial investment in the project, the
failure to realize the anticipated strategic and financial benefits
of the project;
- fluctuations in wholesale power and natural gas markets,
including the potential impacts on the economic viability of our
generation units;
- our ability to obtain adequate fuel supply;
- market risks impacting the operation of our generating
stations;
- changes in technology related to energy generation,
distribution and consumption and changes in customer usage
patterns;
- third-party credit risk relating to our sale of generation
output and purchase of fuel;
- any inability of PSEG Power to meet its commitments under
forward sale obligations;
- reliance on transmission facilities to maintain adequate
transmission capacity for our power generation fleet;
- the impact of changes in state and federal legislation and
regulations on our business, including PSE&G's ability to
recover costs and earn returns on authorized investments;
- PSE&G's proposed investment programs may not be fully
approved by regulators and its capital investment may be lower than
planned;
- the absence of a long-term legislative or other solution for
our New Jersey nuclear plants that
sufficiently values them for their carbon-free, fuel diversity and
resilience attributes, or the impact of the current or subsequent
payments for such attributes being materially adversely modified
through legal proceedings;
- adverse changes in energy industry laws, policies and
regulations, including market structures and transmission planning
and transmission returns;
- risks associated with our ownership and operation of nuclear
facilities, including regulatory risks, such as compliance with the
Atomic Energy Act and trade control, environmental and other
regulations, as well as financial, environmental and health and
safety risks;
- changes in federal and state environmental regulations and
enforcement; and
- delays in receipt of, or an inability to receive, necessary
licenses and permits.
All of the forward-looking statements made in this report 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 report apply only as of the date of this
report. 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.
The forward-looking statements contained in this report are
intended to qualify for the safe harbor provisions of Section 27A
of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended.
From time to time, PSEG, PSE&G and PSEG Power release
important information via postings on their corporate Investor
Relations website at https://investor.pseg.com. Investors and other
interested parties are encouraged to visit the Investor Relations
website to review new postings. You can sign up for automatic email
alerts regarding new postings at the bottom of the webpage at
https://investor.pseg.com.
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SOURCE PSEG