Financial Data and Key Metrics Changes - PSEG reported net income of $1.18 per share for Q1 2025, up from $1.06 per share in 2024, while non-GAAP operating earnings increased to $1.43 per share from $1.31 per share in the previous year [12][13] - Overall results benefited from regulatory recovery and seasonal gas revenues, with a notable increase in nuclear generation performance [5][6] Business Line Data and Key Metrics Changes - PSE&G's net income and non-GAAP operating earnings for Q1 2025 were $546 million, compared to $488 million in 2024, driven by new electric and gas distribution rates [13][14] - The distribution margin increased by $0.20 per share, reflecting the impact of the rate case and recovery of energy efficiency investments [14] - PSEG Power reported net income of $43 million, slightly down from $44 million in Q1 2024, but non-GAAP operating earnings rose to $172 million from $169 million [17] Market Data and Key Metrics Changes - The Basic Generation Service (BGS) default rate is set to increase residential electric bills by 17% starting June 1, largely due to auction results and true-up for prior years [7][8] - PSEG's combined electric and gas bill remains competitive compared to other utilities in New Jersey, with high reliability metrics and customer satisfaction rankings [8][9] Company Strategy and Development Direction - PSEG's capital investment plan for 2025 focuses on infrastructure replacement and modernization, with a five-year capital spending program of $21 billion to $24 billion [11][16] - The company is rolling out the second phase of its Clean Energy Future Energy Efficiency II program to help customers save energy and reduce carbon emissions [9][16] - PSEG is open to potential legislation allowing regulated utilities to build and own new generation, actively engaging with policymakers [10][30] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by rising energy prices and the need for new generation supply to address resource adequacy [8][10] - The company reiterated its full-year non-GAAP operating earnings guidance of $3.94 to $4.06 per share, reflecting a 9% increase from 2024 results [11][22] - Management emphasized the importance of maintaining affordability for customers amid rising costs and ongoing discussions with the Board of Public Utilities [54][56] Other Important Information - PSEG has total available liquidity of $4.6 billion, including $900 million in cash, following significant bond market access [19][20] - The company is focused on maintaining a low level of variable rate debt, representing approximately 7% of total debt [20] Q&A Session Summary Question: Timeline for large load interconnection and resource adequacy in New Jersey - Management indicated that interconnections are happening at different stages, with ongoing discussions about resource adequacy in New Jersey [26][28] Question: Views on FERC settlement process - Management expressed a preference for a settlement process to address industry needs and ensure non-discriminatory treatment among customer classes [32][34] Question: Demand perspective from large load customers - Management noted continued demand for power, particularly nuclear, despite market fluctuations and ongoing discussions [42][43] Question: Strategy for managing affordability concerns - Management highlighted efforts to provide customer assistance programs and promote energy efficiency to mitigate affordability challenges [56][90] Question: Status of commercial agreements related to nuclear capacity - Management confirmed that discussions are ongoing and not contingent on the FERC process, with continued interest from large load customers [60][61] Question: Potential capacity price outcomes and customer bill growth - Management anticipated that capacity prices would remain stable, with no significant increases expected for customers in the near term [75][80] Question: Offshore wind impacts on transmission planning - Management stated that there are no direct impacts from offshore wind developments, but emphasized the need for accurate planning to address future resource adequacy [82]