Public Service Enterprise Group, Inc. Q4 FY2024 earnings call

• Settled PSE&G's first electric and gas rate case with a balanced outcome. - PSE&G received approval for a $2.9 billion Clean Energy Future Energy Efficiency II program. - Efficiently executed a $3.6 billion capital spending program, including completing advanced metering infrastructure. - Implemented new deferral mechanisms for pension and storm costs. - Named number one in customer satisfaction by J.D. Power and received the PA Consulting 2024 ReliabilityOne Award.

PSE&G reported net income of $0.75 per share for the fourth quarter of 2024 and $3.54 per share for the full year 2024. Non-GAAP operating earnings were $0.84 per share for the fourth quarter and $3.68 per share for the full year. PSEG Power and Other had a net loss of $0.18 per share in the fourth quarter of 2024. PSE&G's results were driven by rate case outcomes, infrastructure investments, and energy efficiency programs, while PSEG Power and Other faced challenges but pursued nuclear revenue growth opportunities.

• 2025 non-GAAP operating earnings guidance: $3.94 to $4.06 per share, up 9% at midpoint from 2024 results. - Raised 2025-2029 capital spending plan to $22.5 billion to $26 billion. - Board announced a $0.12 per share increase in annual common dividend to $2.52 per share for 2025.

• Uncertainties in PJM auction results that will increase customer electric bills in June 2025. - Regulatory and market uncertainties impacting PSEG Nuclear's revenue growth opportunities.

Q: On the nuclear side with Artificial Island, any sense on timing and impact?

A: Ralph and Dan discussed ongoing interest, FERC's stance, and New Jersey's initiatives, noting continued discussions with parties and positive signals from the governor.

Q: Thoughts on PJM market outlook and customer impact?

A: Ralph and Dan emphasized focus on reliability and affordability, advocating for customer cost reduction while noting ongoing work on resource adequacy.

Q: Hedging and guidance breakout for PSEG Power?

A: Dan discussed hedging balance and enterprise-level guidance, noting no radical shifts from prior ratable approaches.

Q: GSMP III filing and balance sheet credit metrics?

A: Ralph mentioned GSMP III discussions are ongoing, and Dan noted comfort with credit metrics within mid-teens range.