PSEG(US:PEG)2024-02-26 19:12Financial Data and Key Metrics Changes - For Q4 2023, the company reported net income of $1.10 per share, down from $1.58 per share in Q4 2022. Non-GAAP operating earnings were $0.54 per share compared to $0.64 per share in the same period last year [8][28]. - For the full year 2023, net income was $5.13 per share, significantly up from $2.06 per share in 2022. Non-GAAP operating earnings were $3.48 per share, slightly higher than $3.47 per share in 2022 [9][28]. Business Line Data and Key Metrics Changes - PSE&G reported Q4 2023 net income of $0.58 per share, down from $0.70 per share in Q4 2022. Non-GAAP operating earnings were $0.59 per share compared to $0.70 per share in the previous year [29]. - The main drivers for the decline included lower pension income and higher depreciation and interest expenses due to increased investments not yet reflected in rates [30]. Market Data and Key Metrics Changes - The company experienced a 15% warmer than normal weather during Q4 2023, impacting energy sales. However, the number of electric and gas customers grew by about 1% in 2023 [32][33]. - The nuclear fleet operated at a 93% capacity factor for the full year 2023, producing approximately 32 terawatt hours of carbon-free energy [24][38]. Company Strategy and Development Direction - The company reaffirmed its full year 2024 non-GAAP operating earnings guidance of $3.60 to $3.70 per share and a 5% to 7% earnings CAGR through 2028 [11][42]. - PSEG is focused on capital investments aligned with New Jersey's energy policy goals, including a $3.1 billion Energy Efficiency investment program and a $3.4 billion regulated capital investment plan for 2024 [12][33]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to execute its business plan, highlighting a strong focus on cost containment and reliability [19][27]. - The company noted that New Jersey's regulatory environment is favorable, with recent rate case outcomes being positive for utilities [48]. Other Important Information - PSEG completed its largest single-year capital investment of $3.7 billion in 2023, with significant investments in energy infrastructure and clean energy initiatives [22][33]. - The company has been recognized for its sustainability efforts, being named to the Dow Jones Sustainability North America Index for the 16th consecutive year [25]. Q&A Session Summary Question: Any updates on potential economic development opportunities? - Management indicated potential upside from economic development initiatives in the state, particularly related to wind ports and data centers [46][47]. Question: Thoughts on recent rate proceedings in New Jersey? - Management noted that New Jersey's regulatory process has been consistent and favorable, expecting a non-contentious rate case [48]. Question: Clarification on the $3.1 billion energy efficiency filing? - The filing covers commitments over a triennial period but actual spending will occur over a longer timeframe [74]. Question: Status of nuclear production tax credit guidance? - Management is awaiting guidance from the Treasury regarding the nuclear PTC, with no specific timeline available [77]. Question: Discussion on managing O&M for 2024? - Management indicated no significant surprises in O&M costs for 2024, with labor agreements in place providing cost certainty [85].