PEG Filing 0001628280-24-006885

Financial Performance

PSEG reports a net income of $2.563 billion in 2023, a significant increase from $1.031 billion in 2022

The company's net income saw a substantial increase year-over-year, indicating improved financial performance. This is a key indicator of the company's profitability.

PSE&G's operating revenues decreased slightly to $7.807 billion in 2023 from $7.935 billion in 2022

While the overall company net income increased, the regulated utility, PSE&G, experienced a slight decrease in operating revenues, suggesting potential challenges in its core business.

PSEG Power & Other segment shows a substantial improvement in net income, from a loss of $534 million in 2022 to a profit of $1.048 billion in 2023.

This significant turnaround in the PSEG Power & Other segment suggests a successful restructuring or improved performance in its operations, likely driven by the nuclear generation business and the newly implemented Production Tax Credit (PTC).

Growth & Strategy

PSEG is focusing on regulated investments, particularly in T&D and clean energy programs.

PSEG sold its 25% equity interest in Ocean Wind JV HoldCo, LLC in May 2023.

PSEG Power is set to benefit from the Production Tax Credit (PTC) for nuclear generation starting in 2024.

Management Execution

PSEG has successfully negotiated new four-year agreements with all six of its unions in 2023.

PSE&G is implementing several investment programs including GSMP, Energy Strong, and CEF.

PSEG's hedging strategy is evolving to incorporate the PTC for nuclear generation, which may result in changes to its current approach.

Risk Factors

PSEG faces risks related to climate change, including increased regulatory burdens and potential lawsuits.

Cybersecurity attacks pose a significant threat to PSEG's operations and financial stability.

PSEG's ability to access capital markets could be adversely affected by market disruptions and climate change concerns.

Competitive Position

PSE&G's T&D business is minimally impacted by customers choosing alternate energy suppliers.

PSEG Power faces competition from various market participants including merchant and utility generators.

Environmental issues could impact PSEG's competitiveness, including potential capital investments at nuclear stations.

Operational Efficiency

PSE&G's CIP program reduces the impact on distribution revenues from changes in sales volumes and demand for most customers.

PSE&G's GSMP II program is designed to modernize and improve the resiliency of the gas distribution system.

PSEG is focused on improving the reliability of its electric distribution system through the Infrastructure Advancement Program (IAP).

Innovation & Technology

PSEG is investing in smart meters and new software solutions to improve processes and manage the electric grid.

PSEG is exploring the use of Artificial Intelligence (AI) by the company and its third-party vendors.

PSEG is investing in EV infrastructure to support the growing adoption of electric vehicles.

Capital Allocation

PSEG's regulated capital investment program is estimated to be between $18 billion and $21 billion from 2024 to 2028.

PSE&G is focused on investments in T&D infrastructure and clean energy programs.

PSEG Power's capital expenditures are primarily focused on maintaining and enhancing nuclear operations.

ESG Initiatives

PSEG has established a net-zero GHG emissions goal by 2030 for Scopes 1 and 2 emissions.

PSE&G is investing in programs to help customers use less energy and build EV infrastructure.

PSEG is working to reduce methane emissions from its gas distribution system through GSMP.

Market Environment

PJM's capacity market design is evolving, with ongoing FERC proceedings.

New Jersey's energy policy is shifting towards greater electrification and less reliance on natural gas.

PSEG is monitoring and adapting to changes in customer usage patterns and technology.

Public Service Enterprise Group Incorporated (PEG)

Filing Highlights