PSEG(US:PEG)2025-04-30 20:30Financial Performance - PSE&G's net income for the three months ended March 31, 2025, was $546 million, compared to $488 million for the same period in 2024, indicating a year-over-year increase of approximately 11.9%[259]. - PSEG's net income for the three months ended March 31, 2025, was $589 million, compared to $532 million for the same period in 2024, reflecting a year-over-year increase of approximately 10.7%[259]. - Operating Revenues for PSEG increased by $462 million (17%) to $3,222 million for the three months ended March 31, 2025, compared to $2,760 million in the same period of 2024[279]. - Operating Revenues increased by $220 million, or 25%, to $1,092 million for the three months ended March 31, 2025, compared to the same period in 2024[292]. - Operating Cash Flow increased by $388 million, with PSE&G's operating cash flow rising from $408 million to $632 million, a $224 million increase[299][300]. Capital Investments - PSEG's regulated rate base increased from approximately $30 billion as of December 31, 2023 to approximately $34 billion as of December 31, 2024, reflecting a focus on capital investments to meet growing energy demand[242]. - The estimated regulated capital investment program for 2025-2029 is projected to be between $21 billion and $24 billion, with a compound annual growth rate in the regulated rate base expected to be between 6% and 7.5%[244]. - The approved distribution base rate case settlement includes a $17.8 billion rate base and a 9.6% return on equity for PSE&G's distribution business[248]. - Capital Expenditures for PSE&G were $605 million, primarily for T&D system reliability, and $42 million for PSEG Power & Other, excluding nuclear fuel[315][316]. Energy Costs and Revenues - Energy Costs rose by $189 million (19%) to $1,186 million for the same period, reflecting increased demand and higher prices[279]. - Energy Costs rose by $112 million, or 22%, primarily due to increased gas costs of $111 million[293]. - Delivery Revenues increased by $147 million, primarily due to a $163 million increase in electric and gas revenues from a recently settled distribution base rate case[284]. - Commodity Revenues increased by $162 million, with electric BGS revenues rising by $105 million and gas BGSS revenues increasing by $57 million due to higher prices and sales volumes[287]. Operational Efficiency - PSEG Power's nuclear units generated approximately 8.4 terawatt hours during the first three months of 2025, operating at a capacity factor of 99.9%[249]. - Operation and Maintenance expenses increased by $136 million (17%) to $919 million, largely due to rising clause and renewable costs[279]. - Interest Expense increased by $36 million (18%) to $241 million, influenced by the prevailing interest rate environment[279]. - Interest Expense increased by $17 million, or 25%, due to incremental debt and the replacement of maturing debt at higher rates[296]. Regulatory and Environmental Initiatives - The New Jersey Board of Public Utilities approved approximately $2.9 billion for energy efficiency projects from January 1, 2025, through June 30, 2027, marking a significant increase from prior filings[246]. - The GSMP II program extension, approved in 2023, involves an investment of approximately $900 million to replace at least 400 miles of cast iron and unprotected steel mains and services in the gas system[247]. - PSEG aims to achieve net zero greenhouse gas emissions by 2030, supporting New Jersey's clean energy and climate goals[250]. - PSEG Power's Salem nuclear plants were awarded zero emission certificates (ZECs) at approximately $10 per megawatt hour (MWh) for the eligibility period starting June 2022, continuing through May 2025[268]. - The Inflation Reduction Act (IRA) established a Production Tax Credit (PTC) for existing nuclear generation facilities, expected to be up to $15/MWh, impacting future ZEC applications and revenue[268]. Market Conditions - The anticipated PJM capacity market auction prices for July 2024 were approximately 10 times higher than those from the 2023 auction, raising concerns about electricity costs for customers[269]. - The total committed credit facilities as of March 31, 2025, amounted to $3.825 billion, with available liquidity of $3.704 billion[304]. - The company expects to meet its capital requirements over the next three years through a combination of internally generated funds and external debt financing[314]. - The Value-at-Risk (VaR) for the three months ended March 31, 2025, ranged from a low of $31 million to a high of $55 million at the 95% confidence level[322]. Dividends - The Board of Directors approved a common stock dividend of $0.63 per share for the second quarter of 2025, reflecting an annual rate of $2.52 per share[310].