Dive Brief:
- Public Service Enterprise Group's third quarter 2014 profit was $444 million, and $0.87 per share, up from Q3 2013’s $390 million, and $0.77 per share. Q3 2014 operating earnings were $393 million, and $0.77 per share, up from Q3 2013’s $385 million, and $0.76 per share.
- PSEG reported an expanded capital spending program and a decline in operating costs, along with its $1.2 billion five year Energy Strong plan to upgrade and storm harden its transmission and distribution system.
- Q3 2014 operating revenue was up 3.4% to $2.64 billion from Q3 2013’s $2.55 billion. Although that revenue fell short of the analyst-predicted $2.76 billion, it was sufficient to allow the company to raise its 2014 per share earnings guidance at the low end so that it is now between $2.60 and $2.75.
Dive Insight:
“PSEG performed well in the third quarter despite the impact on demand for electricity due to less favorable weather conditions,” said Chair/President/CEO Ralph Izzo. “Our earnings continue to benefit from the expansion of our regulated utility capital programs.”
PSEG operates the Public Service Electric and Gas (PSE&G) regulated public utility, a generation subsidiary PSEG Power, a business unit, PSEG Services Corporation, and PSEG Long Island, which was formed in partnership with the Long Island Power Authority (LIPA) after SuperStorm Sandy to operate the Long Island municipal utility’s transmission and distribution system.
PSEG Fossil operates natural gas, coal and oil-fired electric generating units; PSEG Nuclear operates the 2 New Jersey nuclear plants and co-owns another in Pennsylvania; PSEG Energy Resources & Trade operates the generation unit’s market activities; and PSEG Power Ventures develops utility-scale solar and operates a cogeneration facility.
PSE&G reduced its gas rates 9% during Q3 2014.
