Financial Data and Key Metrics Changes - PSEG reported net income of 1.18 per share in Q2 2023, and 3.76 per share in the same period of 2023 [6][12] - Non-GAAP operating earnings were 0.70 per share in Q2 2023, and 2.09 per share in the same period of 2023 [13][30] Business Line Data and Key Metrics Changes - PSE&G reported net income of 0.67 per share in Q2 2023, with non-GAAP operating earnings also decreasing from 0.60 per share [32] - PSEG Power & Other reported net income of 0.51 per share in Q2 2023, while non-GAAP operating earnings increased from 0.03 per share [38][39] Market Data and Key Metrics Changes - The electric margin increased by 0.02 per share due to timing of revenue and O&M [33] - The number of electric and gas customers grew by approximately 1% over the past year, contributing to margin growth under the CIP mechanism [36] Company Strategy and Development Direction - PSEG is focused on executing a five-year capital investment plan of 22.5 billion through 2028, with 21 billion allocated for regulated investments [19][27] - The company is pursuing incremental investment opportunities, particularly in data centers and electric vehicle charging infrastructure, which are expected to drive load growth [21][78] Management's Comments on Operating Environment and Future Outlook - Management noted that the first half of 2024 results are on track with full-year expectations, anticipating resolution of the distribution rate case and increased gross margin in the fourth quarter [8][44] - The company reaffirmed its long-term non-GAAP operating earnings growth guidance of 5% to 7% through 2028, supported by capital investment programs and nuclear production tax credits [26][44] Other Important Information - PSEG's electric transmission and distribution system performed well during severe weather, restoring power to customers affected by storms in under 24 hours [9] - The New Jersey Board of Public Utilities approved a $300 million extension of the clean energy future program, reflecting ongoing regulatory support for energy efficiency initiatives [10] Q&A Session Summary Question: Can you elaborate on data center opportunities and their economic benefits? - Management highlighted the potential for hyperscale data centers to attract AI companies and create local job opportunities, with several hundred megawatts of data centers in the pipeline [47][51] Question: How does the recent FERC protest affect your plans? - Management stated that ongoing projects would not be affected and emphasized support for the governor's economic development initiatives [60] Question: Are you discussing an ISA for artificial island? - Management clarified that discussions on interconnection agreements would only occur once a project moves forward [65] Question: What is the stance on offshore wind projects? - Management confirmed that offshore wind remains a priority and there are no indications of delays in New Jersey [67] Question: What is the outlook for EV infrastructure investment? - Management indicated steady growth in EV interconnections and ongoing upgrades to support infrastructure [82] Question: What is the status of the energy efficiency program? - Management noted that discussions are ongoing and a settlement is expected by the end of the year [100]
PSEG(PEG) - 2024 Q2 - Earnings Call Transcript