Public Service Enterprise Group plans to invest $16 billion over the next five years to provide customers with more reliable, affordable and cleaner energy.
The bulk of the investments will be made in New Jersey. The company's investments in its electric and gas utility and its competitive power generation fleet are expected to support another year of strong operating earnings. PSEG reaffirmed its 2016 earnings guidance of $2.80-$3.00 per share.
Speaking at the company's Annual Investor Conference in New York, Ralph Izzo, PSEG chairman, president and CEO, told the financial community that the company's strategy has produced a stable investment pipeline, dividend growth and operating earnings at the upper end of 2015 guidance.
PSEG's focus on maintaining a solid balance sheet has allowed it to finance its capital program without the need to issue equity. PSEG's investment programs have strengthened the company and New Jersey's economy by creating thousands of jobs a year, improving the state's energy infrastructure and providing environmental benefits.
"PSE&G is expected to deliver double-digit earnings growth in 2016 and accounts for more than 60 percent of PSEG's consolidated earnings," Izzo said. "PSE&G's current five-year, $12 billion capital program is expected to provide best-in-class, high single-digit rate base growth through the end of 2020. The potential expansion of existing infrastructure programs could result in additional capital investment of $2 billion at PSE&G, delivering double-digit growth in rate base through the end of the decade.
"We're replacing and upgrading critical transmission lines, making our systems more resilient through our Energy Strong program, and modernizing 510 miles of older gas mains," Izzo said. "We are focused on future energy needs and these necessary upgrades will help to ensure the reliability and safety of our electric and gas systems for our 2.2 million customers for the future."
Izzo also pointed to the growth of PSEG Power. Over the last year, PSEG Power announced plans to invest more than $2 billion in the development of three new combined-cycle gas plants in the PJM and New England markets.
"PSEG Power's capital program is focused on growth investments of efficient, clean, gas generation which enhance our fleet's competitive market position. The addition of Keys, Sewaren and Bridgeport Harbor will bring PSEG Power's fleet to more than 13,000 MWs of generating capacity. Combined with our already low-cost nuclear fleet, we are extremely well positioned in terms of location, diversity of both fuel and technology and clean energy," added Izzo.
Izzo also noted PSEG Power's growing investment in its Solar Source subsidiary, which substantially increased its portfolio through acquisitions during the last 12 months. "Solar Source now has 16 utility-scale projects in 12 states, with a total capacity of approximately 277 MWs with continued growth expected throughout 2016," he said.
"Our focus on providing efficient, clean and reliable energy supports a variety of public policy priorities, serves our customers' needs and delivers strong growth for shareholders," said Izzo. "By delivering on our strategic investment program, we are building an energy company that will serve our customers far into the future."
Public Service Enterprise Group (PEG) is a publicly traded diversified energy company with annual revenues of $10.4 billion. Its operating units are: Public Service Electric and Gas Company (PSE&G), PSEG Power, and PSEG Long Island.