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PEG · Public Service Enterprise Group

30 filings

10-K

PEG 10-K Annual Reports

Public Service Enterprise Group - 30 annual reports

Filing record · 2016–202610-K1110-Q338-K149

2025
Public Service Enterprise Group Annual Report, Year Ended Dec 31, 2025
Public Service Enterprise Group Incorporated (PSEG) reported 2025 net income of $2.11 billion, or $4.22 per diluted share, up from $1.77 billion, or $3.54 per diluted share, in 2024. PSE&G contributed $1.745 billion of net income versus $1.547 billion in 2024, and PSEG Power & Other contributed $366 million versus $225 million. The filing attributes the increase primarily to higher earnings from the 2024 distribution base rate case settlement and continued T&D clause program investments at PSE&G, higher energy and capacity prices at PSEG Power, and changes in NDT Fund and mark-to-market results. Operating revenues rose to $12.17 billion from $10.29 billion. The company is predominantly a regulated electric and gas utility with a nuclear generation business. Regulated rate base grew from approximately $34 billion at year-end 2024 to approximately $36 billion at year-end 2025. For 2026 through 2030, PSEG estimates a regulated capital investment program of $22.5 billion to $25.5 billion, with an expected rate base compound annual growth rate of 6.0% to 7.5% from year-end 2025 to year-end 2030. Its total capital program is estimated at $24 billion to $28 billion. Nuclear units produced approximately 30.9 terawatt hours at a 91.2% capacity factor in 2025, and the Hope Creek refueling cycle was extended to 24 months. The filing highlights several risks. PJM's most recent capacity auction cleared at the $333.44/MW-day price cap, and PJM fell 6,625 MW short of its reliability requirement, which raises affordability and policy scrutiny. Federal and state regulatory outcomes remain uncertain, including FERC's transmission planning and co-located load proceedings, the New Jersey Energy Master Plan, and the Production Tax Credit guidance from the U.S. Treasury. PSEG also cites environmental remediation exposure, including the Lower Passaic River and CCR Rule matters, and cybersecurity risk. The Board approved a first-quarter 2026 dividend of $0.67 per share, an indicative annual rate of $2.68.
Feb 26, 2026
2024
Public Service Enterprise Group Annual Report, Year Ended Dec 31, 2024
Public Service Enterprise Group Incorporated (PSEG) is a public utility holding company whose profitability depends on its subsidiaries. Its predominantly regulated utility, PSE&G, provides electric transmission and electric and gas distribution to customers across New Jersey, while PSEG Power operates a nuclear generation business with 3,758 MW of owned nuclear capacity. For 2024, PSEG reported net income of $1,772 million, or $3.54 diluted EPS, down from $2,563 million ($5.13) in 2023. The filing attributes the decline primarily to changes in mark-to-market gains and losses (non-trading MTM losses of $151 million after tax in 2024 versus gains of $959 million in 2023), partly offset by higher PSE&G earnings and production tax credits beginning in 2024 at PSEG Power. PSE&G net income rose to $1,547 million from $1,515 million. Looking forward, the company expects regulated capital investment of $21 billion to $24 billion for 2025-2029, with a projected compound annual growth rate in regulated rate base of 6% to 7.5% from year-end 2024 to year-end 2029. Regulated rate base grew from approximately $30 billion to approximately $34 billion during 2024. The PSE&G distribution base rate case settlement, approved in October 2024, provides a $17.8 billion rate base and a 9.6% return on equity. Key risks include the outcome of PJM capacity market changes and complaints, uncertainty around IRA nuclear production tax credit guidance from the U.S. Treasury (including gross receipts definition, which could materially change the PTC value), the expiration of the LIPA operations services agreement at December 31, 2025, and the proposed Salem and Hope Creek license renewal timeline. Liquidity appears adequate: total committed credit facilities were $3.8 billion, with $2.5 billion of available liquidity at December 31, 2024. Dividends paid on common stock were $2.40 per share in 2024, and the Board approved a $0.63 per share quarterly dividend for the first quarter of 2025, an indicative annual rate of $2.52 per share. The company reported a stable Moody's and S&P outlook for PSEG and its subsidiaries, with PSEG senior notes rated Baa2 and BBB.
Feb 25, 2025
2023
Public Service Enterprise Group Annual Report, Year Ended Dec 31, 2023
Public Service Enterprise Group Incorporated (PSEG) reported 2023 net income of $2.56 billion, or $5.13 per diluted share, up from $1.03 billion ($2.06 per diluted share) in 2022. The increase was driven primarily by a $2.02 billion net increase from mark-to-market gains in PSEG Power, changes in the Nuclear Decommissioning Trust Fund, and higher earnings from T&D clause programs at PSE&G, partially offset by a $239 million after-tax pension settlement charge. PSE&G net income was $1.515 billion in 2023 versus $1.565 billion in 2022, while PSEG Power & Other net income was $1.048 billion versus a loss of $534 million. Operating revenues rose to $11.24 billion from $9.80 billion. The company describes itself as a public utility holding company, predominantly regulated, with a plan to invest $18 billion to $21 billion in regulated capital from 2024 to 2028, projecting a 6% to 7.5% compound annual growth rate in regulated rate base from year-end 2023 to year-end 2028. The filing notes the 2022 sale of the 6,750 MW fossil portfolio, the expected nuclear production tax credit beginning January 1, 2024, and a December 2023 distribution base rate case proposing a 9% overall revenue increase. Liquidity is described as sufficient for a 12-month stressed planning horizon, with $3.37 billion of available liquidity under committed facilities. Key risks flagged include regulatory outcomes on PSE&G recovery and approved investment programs, nuclear revenue sensitivity to natural gas prices and PTC guidance, potential collateral calls if PSEG Power lost investment-grade ratings, environmental remediation liabilities such as the Passaic River matter, and cybersecurity exposure. Long-term debt was $17.78 billion at year-end 2023, and the Board approved a $0.60 quarterly dividend for the first quarter of 2024, an indicative annual rate of $2.40 per share.
Feb 26, 2024
2022
Public Service Enterprise Group Annual Report, Year Ended Dec 31, 2022
Public Service Enterprise Group Incorporated (PSEG) reported 2022 net income of $1,031 million, or $2.06 per diluted share, compared with a net loss of $648 million in 2021. The improvement was driven primarily by the absence of the 2021 impairment tied to the sale of PSEG Power's fossil generation assets, higher earnings from continued T&D investment at PSE&G ($1,565 million net income in 2022 versus $1,446 million in 2021), and the favorable Conservation Incentive Program. PSEG Power & Other posted a net loss of $534 million in 2022, reflecting lower generation revenues, net unrealized losses on NDT Fund equity securities, and $457 million of after-tax non-trading mark-to-market losses. The February 2022 sale of the 6,750 MW fossil portfolio closed the company's transition toward a more regulated earnings mix. PSE&G's capital investment program for 2023-2027 is estimated at $15.5 billion to $18 billion, with an expected compound annual rate base growth of 6% to 7.5% from year-end 2022 to year-end 2027. Total projected PSEG capital expenditures are $3.64 billion in 2023, $3.05 billion in 2024 and $3.06 billion in 2025. The nuclear fleet, with 3,766 MW of owned capacity, operated at a 92.2% capacity factor in 2022, and the Inflation Reduction Act's nuclear production tax credit, expected to be up to $15/MWh from 2024 through 2032, is expected to provide downside price protection. PSEG Power's collateral postings rose from $343 million in June 2021 to $1.5 billion at year-end 2022, and were about $700 million as of February 17, 2023. Key risks include PJM capacity auction uncertainty (results for the 2024-2025 delivery year were not announced), FERC proceedings on the transmission ROE adder, volatile collateral requirements, pension funding pressure from 2022 asset losses, and potential state policy shifts away from natural gas. The company declared a $0.57 quarterly dividend, an indicative annual rate of $2.28 per share, and completed a $500 million share repurchase program during 2022.
Feb 22, 2023
2021
Public Service Enterprise Group Annual Report, Year Ended Dec 31, 2021
Public Service Enterprise Group Incorporated (PSEG) reported a 2021 net loss of $648 million, compared with net income of $1,905 million in 2020, driven primarily by a $2,637 million loss on asset dispositions and impairments tied to the sale of PSEG Power's fossil generation fleet. PSE&G, the regulated utility, earned $1,446 million in net income in 2021, up from $1,327 million, and the filing describes it as an increasing share of earnings. Diluted EPS was a loss of $1.29 per share versus earnings of $3.76 per share in 2020. In February 2022 PSEG completed the sale of its 6,750 MW fossil generation portfolio to subsidiaries of ArcLight Energy Partners Fund VII, L.P., which management calls an important milestone toward becoming a predominantly regulated electric and gas utility. The company plans PSE&G capital investment of $14 billion to $16 billion for 2021-2025, with expected compound annual rate base growth of 6.5% to 8%. Consolidated operating cash flow fell to $1,736 million from $3,102 million, largely due to $844 million of net cash collateral postings at PSEG Power. Key risks include the nuclear fleet's dependence on New Jersey Zero Emission Certificate payments, pending FERC and BPU proceedings, collection pressures from the COVID-19 shutoff moratorium at PSE&G, and a pending New York Comptroller decision on the amended Long Island (LIPA) operations agreement. The Board approved a $2.16 indicative annual dividend rate for 2022, and PSEG bought back the full $250 million authorized under its open market repurchase plan.
Feb 24, 2022
2020
Public Service Enterprise Group Annual Report, Year Ended Dec 31, 2020
Public Service Enterprise Group Incorporated (PSEG) reported 2020 Net Income of $1,905 million, or $3.76 diluted EPS, up from $1,693 million and $3.33 in 2019. The increase was driven primarily by a gain on the sale of PSEG Power's interest in the Yards Creek generation facility, the absence of a 2019 loss on the Keystone and Conemaugh fossil plant sales, higher T&D earnings at PSE&G, and higher pension and OPEB credits, partly offset by mark-to-market losses and lower energy and capacity prices at PSEG Power. PSE&G contributed $1,327 million of Net Income and PSEG Power $594 million. Operating revenues fell to $9,603 million from $10,076 million. The company is transforming into a primarily regulated electric and gas utility. PSE&G expects to invest between $13 billion and $15 billion over the five years ending December 31, 2025, and PSEG Power is exploring strategic alternatives for its non-nuclear generating fleet of more than 6,750 MW, with any transaction expected in 2021. PSEG plans to retain its nuclear fleet, whose Salem 1, Salem 2 and Hope Creek plants depend on Zero Emission Certificate (ZEC) payments that run through May 2022, and the second ZEC eligibility decision is expected in April 2021. PSEG also plans to acquire a 25% interest in the Ocean Wind offshore project, expected to close in the first half of 2021. Key risks flagged include the ZEC program's outcome, the outcome of the strategic review, the LIPA complaint against PSEG LI seeking $70 million in damages, the Passaic River superfund matter with a $2.3 billion EPA remedy estimate, and continued coronavirus-related effects on collections and bad debt. Cash dividends were $1.96 per share in 2020, and the Board approved a $0.51 quarterly dividend for the first quarter of 2021.
Mar 1, 2021
2019
Public Service Enterprise Group Annual Report, Year Ended Dec 31, 2019
Public Service Enterprise Group Incorporated (PSEG) reported 2019 net income of $1.69 billion, or $3.33 per diluted share, up from $1.44 billion ($2.83 per diluted share) in 2018, on operating revenues of $10.08 billion. The increase was driven primarily by higher earnings from distribution rate relief and T&D investments at PSE&G, mark-to-market gains and nuclear decommissioning trust gains at PSEG Power, and ZEC revenues starting in April 2019. These gains were partially offset by a $286 million after-tax loss on the September 2019 sale of PSEG Power's interests in the Keystone and Conemaugh coal plants. PSE&G plans to invest between $11.5 billion and $15 billion over the five years ending December 31, 2024, with an expected compound annual rate base growth of 6.5% to 8%. Much of that range depends on unapproved programs, most notably the proposed $3.5 billion Clean Energy Future program, which is still under BPU review. PSEG Power is moving its fleet away from coal, having exited or retired over 2,400 MW since 2017, and expects more than 70% of its 2020 expected gross margin to come from hedging, capacity market revenues, ZEC revenues and certain ancillary services. The filing highlights several material uncertainties: the outcome of the Salem 1, Salem 2 and Hope Creek ZEC awards, which are under appeal and could trigger retirement of those plants; FERC's December 2019 expansion of the PJM minimum offer price rule; the Passaic River superfund matter, where the EPA's Record of Decision for the lower 8.3 miles carries an estimated $2.3 billion remediation cost; and the potential impact of the Regional Greenhouse Gas Initiative after New Jersey's re-entry in January 2020. The company declared a first-quarter 2020 dividend of $0.49 per share, an indicative annual rate of $1.96.
Feb 26, 2020
2018
Public Service Enterprise Group Annual Report, Year Ended Dec 31, 2018
Public Service Enterprise Group Incorporated (PSEG) reported 2018 net income of $1,438 million, or $2.83 per diluted share, down from $1,574 million ($3.10) in 2017. The decline was driven largely by a $745 million one-time non-cash tax benefit recorded in 2017 from the Tax Cuts and Jobs Act, and by $209 million of net unrealized losses on NDT Fund equity securities recognized in 2018 under new accounting guidance. Operating revenues rose to $9,696 million from $9,094 million, and operating income increased to $2,298 million from $1,429 million, largely because 2017 included accelerated depreciation of the Hudson and Mercer units. PSE&G net income rose to $1,067 million from $973 million, while Power's fell to $365 million from $479 million. The company's growth plan centers on PSE&G, which expects to invest between $11 billion and $16 billion over five years, supporting annual rate base growth of 7%-9%. Pending programs include Energy Strong Program II ($2.5 billion over five years), Clean Energy Future ($3.6 billion over six years), and GSMP II ($1.9 billion), all subject to BPU approval. At Power, the filing states that three New Jersey nuclear plants (Salem 1, Salem 2, and Hope Creek) will retire absent selection for Zero Emission Certificate payments in April 2019. The board approved a $0.47 quarterly dividend for the first quarter of 2019, an indicative annual rate of $1.88 per share, and management stated it expects to fund planned capital needs without issuing new equity. Key risks include wholesale power and gas price volatility, FERC proceedings on PJM capacity market design, the outcome of the ZEC program, Passaic River environmental liabilities, and the possibility of further impairments of coal assets and leveraged leases.
Feb 28, 2019
2017
Public Service Enterprise Group Annual Report, Year Ended Dec 31, 2017
Public Service Enterprise Group Incorporated (PSEG) reported 2017 net income of $1.57 billion, or $3.10 per diluted share, up from $887 million ($1.75 per diluted share) in 2016. The filing attributes the increase primarily to favorable new tax legislation at Power and Energy Holdings, including a one-time, non-cash net income benefit of $745 million from remeasuring deferred tax liabilities under the Tax Act, along with higher transmission revenues at PSE&G. These gains were partially offset by $577 million (after tax) of charges related to the early retirement of Power's Hudson and Mercer coal/gas units, and by lower volumes and prices in energy sales. PSE&G, the regulated utility, earned $973 million in 2017 versus $889 million in 2016, while Power earned $479 million versus $18 million. PSE&G's rate base and capital program remain central to the outlook, with projected 2018 total capital expenditures of $3.36 billion across PSEG, including $2.67 billion at PSE&G. PSE&G filed a distribution base rate case in January 2018 requesting approximately a one percent revenue increase, with new rates expected in the fourth quarter of 2018. The company also proposed a $2.7 billion GSMP II gas program, which is pending before the BPU. Key risks for investors include weak wholesale power and natural gas prices, the potential early retirement of the Salem and Hope Creek nuclear units absent New Jersey legislation, the bankruptcy-related write-downs of Energy Holdings' leveraged leases tied to GenOn and REMA, a FERC investigation into cost-based bids at Power's New Jersey fossil units with potential disgorgement of $35 million to $135 million plus penalties, and the Westinghouse Electric bankruptcy affecting nuclear fuel fabrication for Salem. The Board approved a first-quarter 2018 dividend of $0.45 per share, an indicative annual rate of $1.80.
Feb 26, 2018
2016
Public Service Enterprise Group Annual Report, Year Ended Dec 31, 2016
Public Service Enterprise Group Incorporated (PSEG) reported 2016 Net Income of $887 million, or $1.75 per diluted share, down from $1,679 million ($3.30 per diluted share) in 2015. The decrease was driven primarily by charges for the early retirement of the Hudson and Mercer coal/gas units, which the filing says recorded $396 million of after-tax expenses at Power, along with mark-to-market losses in 2016 versus gains in 2015, lower sales volumes and prices, and a $92 million after-tax leveraged lease charge at Energy Holdings. Operating Revenues fell to $9.06 billion from $10.42 billion, while Depreciation and Amortization rose to $1.48 billion from $1.21 billion, largely from accelerated depreciation of the retiring units. PSE&G, the regulated utility, earned $889 million in 2016 versus $787 million in 2015, supported by higher transmission revenues, and the filing notes its $1.2 billion Energy Strong Program and $905 million Gas System Modernization Program. Power's net income fell to $18 million from $856 million. The company reported $3.31 billion of operating cash flow and $4.20 billion of capital additions in 2016, planned capital spending of $4.66 billion for 2017, and raised its indicative annual dividend to $1.72 per share. Key open matters include an ongoing FERC Staff investigation into errors in Power's PJM cost-based bids, which the filing says could result in material losses, and Passaic River environmental costs. The filing states that PSEG met its funding needs through internally generated cash and external financings without issuing new equity, and that it maintained investment-grade credit ratings. Its distribution base rate case must be filed with the New Jersey BPU no later than November 1, 2017.
Feb 27, 2017
2015
Public Service Enterprise Group Annual Report, Year Ended Dec 31, 2015
Public Service Enterprise Group Incorporated (PSEG) reports 2015 net income of $1.68 billion, or $3.30 per diluted share, up from $1.52 billion, or $2.99 per diluted share, in 2014. Operating revenues were $10.42 billion, down from $10.89 billion. The increase was driven primarily by higher transmission revenues at PSE&G, higher mark-to-market gains and lower fuel costs at Power, and insurance recoveries of Superstorm Sandy costs, primarily at Power. These were partially offset by lower capacity revenues and higher pension and OPEB costs. PSEG describes its two principal operating subsidiaries as PSE&G, a New Jersey regulated transmission and distribution utility, and Power, a merchant generator with 11,678 MW of nuclear and fossil capacity. The company reports cash on hand of $394 million at year-end 2015, solid investment grade credit ratings, and a 2016 indicative annual dividend rate of $1.64 per share. Management states it expects to fund its planned transmission, Energy Strong, GSMP and generation projects without issuing new equity. Planned 2016-2018 capital expenditures total $4.44 billion, $4.09 billion and $2.96 billion for PSEG overall in the three years shown. Key risks include continued low natural gas and electricity prices, a pending FERC staff investigation into errors in Power's cost-based bids for its New Jersey fossil units, with potential disgorgement and penalties that the filing says could be material if PSEG's legal arguments do not prevail, and pending capacity market and environmental rules, including the Clean Power Plan, which the U.S. Supreme Court stayed in February 2016.
Feb 26, 2016
2014
Public Service Enterprise Group Annual Report, Year Ended Dec 31, 2014
Public Service Enterprise Group Incorporated (PSEG) reported 2014 net income of $1.52 billion, or $2.99 per diluted share, up from $1.24 billion ($2.45 per diluted share) in 2013. Operating revenues rose to $10.89 billion from $9.97 billion. The company operates through two principal subsidiaries: PSE&G, a regulated New Jersey transmission and distribution utility that earned $725 million, and PSEG Power, a wholesale generator with roughly 13,146 MW of nuclear and fossil capacity that earned $760 million. Other operations, including Energy Holdings and the Long Island T&D operation (PSEG LI), contributed $33 million. The increase was driven mainly by higher transmission revenues at PSE&G, mark-to-market gains at Power, and lower pension and OPEB costs, partially offset by lower BGS volumes and higher fuel costs. Key risks include continued low natural gas and electricity prices, capacity market design uncertainty in PJM (including demand response litigation and the Capacity Performance proposal), an open FERC investigation into errors in Power's fossil unit bids, and potential cooling-water permit requirements at Salem that could be material. The company also faces pending environmental regulation such as EPA's proposed carbon rule for existing plants and the Passaic River cleanup. Power had $402 million in cash at year-end, $4.1 billion of available liquidity, and a 2015 dividend indicated at $1.56 per share. The filing is a combined Form 10-K for PSEG, PSE&G and PSEG Power LLC. Capital spending plans total $3.22 billion for 2015, of which $2.62 billion is at PSE&G, with the Energy Strong program and PJM-assigned transmission projects, including the $1.2 billion Bergen-Linden Corridor, as major drivers.
Feb 26, 2015
2013
Public Service Enterprise Group Annual Report, Year Ended Dec 31, 2013
Public Service Enterprise Group Incorporated (PSEG) filed this combined 10-K for fiscal 2013 together with PSEG Power LLC (Power) and Public Service Electric and Gas Company (PSE&G). PSEG reported 2013 net income of $1.243 billion, or $2.45 diluted earnings per share, compared with $1.275 billion, or $2.51 per share, in 2012, and operating revenues of $9.968 billion. The decline was attributed primarily to higher operations and maintenance costs from planned outages and higher mark-to-market losses at Power, partly offset by higher PJM capacity prices and higher transmission revenues at PSE&G. PSE&G earned $612 million in 2013 versus $528 million in 2012, while Power earned $644 million versus $666 million. The filing highlights a utility growing its transmission and distribution investment. PSE&G made $2.207 billion of capital expenditures in 2013, and PSEG's three-year capital forecast totals $7.1 billion. The company also proposed a $3.9 billion ten-year Energy Strong resiliency program to the New Jersey Board of Public Utilities, which remains pending. PSEG's board approved a first-quarter 2014 dividend of $0.370 per share, an indicated annual rate of $1.48. Key risks include continued low natural gas and power prices affecting Power's margins, regulatory uncertainty around capacity markets and state subsidies, and environmental rules such as the EPA's cooling water intake rule, which the filing says could be material. Power's nuclear and fossil fleet faces potential closed-cycle cooling requirements, and the Superstorm Sandy insurance recovery remains in litigation. The LCAPP subsidy program was ruled unconstitutional, with the appeal pending.
Feb 26, 2014
2012
Public Service Enterprise Group Annual Report, Year Ended Dec 31, 2012
Public Service Enterprise Group Incorporated (PSEG) reported 2012 operating revenues of $9.78 billion, down from $11.08 billion in 2011, and net income of $1.28 billion, or $2.51 per diluted share, versus $1.50 billion and $2.96 per share in 2011. The decline was driven mainly by lower electricity and natural gas prices, lower BGS revenues, and mark-to-market losses at Power, partly offset by higher transmission revenues at PSE&G and the absence of the 2011 $170 million after-tax leveraged lease charge. Superstorm Sandy caused the highest level of customer outages in the company's history, with Power incurring about $85 million of costs and PSE&G about $295 million to restore service, much of which was deferred under a December 2012 BPU order. The company operates through three subsidiaries: Power, a merchant generator with about 13,226 MW of owned capacity; PSE&G, a New Jersey regulated utility earning returns on transmission and distribution; and Energy Holdings, which holds lease investments and solar projects. The filing emphasizes a shift in business mix toward regulated utility investment. PSEG projects about $6.1 billion of capital expenditures over 2013 to 2015, about 80% at PSE&G, and filed a $3.9 billion ten-year grid hardening petition with the BPU in February 2013. The company also cites ongoing regulatory uncertainty, including New Jersey's LCAPP subsidized generation program, FERC Order 1000 transmission rules, and proposed EPA cooling water intake rules. For investors, the filing shows a strong balance sheet with $379 million of cash and $3.9 billion of available liquidity, and a dividend increased to $1.42 per share in 2012, with the Board approving a $0.36 quarterly rate ($1.44 indicated annually) for the first quarter of 2013.
Feb 26, 2013
2011
Public Service Enterprise Group Annual Report, Year Ended Dec 31, 2011
Public Service Enterprise Group Incorporated (PSEG) reported 2011 Income from Continuing Operations of $1,407 million (diluted EPS $2.77) and Net Income of $1,503 million (diluted EPS $2.96), compared with $1,557 million and $1,564 million in 2010. Operating revenues were $11,079 million versus $11,793 million in 2010. The decline was driven by lower electricity and gas prices, lower Basic Generation Service (BGS) volumes from customer migration, and a $170 million after-tax charge on leveraged leases tied to Dynegy's bankruptcy. These were partly offset by higher PSE&G distribution and transmission revenues and the absence of a 2010 $72 million after-tax Market Transition Charge refund charge. PSEG's Power segment contributed $1,002 million of 2011 continuing income, PSE&G $521 million, and Energy Holdings a loss of $134 million. Cash from operations was over $3.5 billion (net cash from operating activities of $3,557 million), helped by about $900 million of cash benefits from 2010 federal accelerated depreciation provisions. Capital expenditures were about $2.1 billion, and dividends paid were $693 million. The Board approved a first-quarter 2012 dividend of $0.3550 per share, an indicated annual rate of $1.42, and described a change in dividend policy toward one that considers the growing contribution of regulated operations. The company reported total credit facilities of $4.2 billion and cash on hand of over $800 million. Key forward-looking issues include the continuing potential for low natural gas and electricity prices, regulatory and political uncertainty, and subsidized generation in New Jersey under the Long-Term Capacity Agreement Pilot Program (LCAPP), which the filing says could artificially depress wholesale prices. The company also disclosed a January 31, 2012 closing agreement with the IRS settling leasing disputes, and expects capital expenditures of $6.8 billion or more over the next three years, over 75% of which is at PSE&G.
Feb 27, 2012
2010
Public Service Enterprise Group Annual Report, Year Ended Dec 31, 2010
Public Service Enterprise Group Incorporated (PEG) reported 2010 Net Income of $1.56 billion, or $3.08 diluted EPS, versus $1.59 billion ($3.14) in 2009, on operating revenues of $11.79 billion. Income from Continuing Operations was $1.56 billion ($3.07 diluted), with Power contributing $1.14 billion, PSE&G $359 million, and Energy Holdings $49 million. Management attributes the decline mainly to lower natural gas prices reducing margins on Power's eastern PJM sales, customer migration away from BGS contracts, a $122 million charge to refund Market Transition Charge collections, and lower gas volumes from milder weather. The filing states that earnings are expected to be lower in 2011, while cash from operations is expected to remain strong, aided by about $750 million of cash benefits from two 2010 tax provisions on accelerated depreciation. The filing highlights several growth and capital programs, including the Susquehanna-Roseland transmission line (up to $750 million, with in-service dates now expected in 2014 for the eastern portion and 2015 for the western portion), the reconfigured Roseland-to-Hudson 230 kV project (up to $700 million), and the Solar 4 All program (about $465 million for 80 MW). Power's 2011 to 2013 capital projections total $670 million, $485 million and $340 million, while PSE&G's total $1.47 billion, $1.51 billion and $1.60 billion over the same period. Key risks include the New Jersey LCAPP law enacted January 28, 2011, which provides for 2,000 MW of subsidized generation and is being challenged at FERC and in court, a pending IRS challenge to leveraged lease deductions (about $260 million currently payable if conceded, plus $150 million in penalties), and Power's $828 million potential additional collateral requirement if it lost investment-grade status. Liquidity appears adequate, with total available credit of $3.35 billion at December 31, 2010 and PSE&G's Mortgage coverage ratio of 3.6 to 1. The Board approved a first-quarter 2011 dividend of $0.3425 per share, an indicated annual rate of $1.37.
Feb 25, 2011
2009
Public Service Enterprise Group Annual Report, Year Ended Dec 31, 2009
Public Service Enterprise Group Incorporated (PSEG) reported 2009 Net Income of $1.59 billion, or $3.14 per diluted share, up from $1.19 billion ($2.34 per diluted share) in 2008, on Operating Revenues of $12.41 billion versus $13.32 billion. Income from Continuing Operations rose to $1.59 billion from $983 million, largely because 2008 included an after-tax charge of $490 million on certain leveraged leases. Power, the wholesale generation business, contributed $1.19 billion of earnings, PSE&G contributed $325 million, and Energy Holdings contributed $72 million. The filing states that Power has contributed at least 70% of Income from Continuing Operations over the past three years, and that Energy Holdings' earnings have declined significantly as international investments were sold. The filing describes a company facing lower demand and lower market prices. Power generation volumes fell about 5% in 2009, driven by mild weather, the economic slowdown, and customer migration away from Basic Generation Service contracts. Management expects continued lower margins for the generation business. PSE&G's earnings fell to $325 million from $364 million on lower customer demand and higher pension expense, partly offset by a transmission formula rate increase. Management reported 2009 operating cash flow of $1.86 billion, versus $2.35 billion in 2008, and projects total capital expenditures of $2.84 billion in 2010. The filing also discloses material contingencies. The IRS has disallowed deductions on certain leveraged lease transactions, with $660 million potentially payable in tax and $150 million in penalties if the IRS prevails, against $320 million on deposit. Environmental exposure includes the Passaic River cleanup, estimated at $900 million to $2.3 billion for the lower eight miles of the river in one draft EPA study, and a New Jersey NOx rule that could require retirement of roughly 2,000 MW of combustion turbines and 800 MW of steam units by April 2015. The quarterly dividend was raised by $0.01 to $0.3425 per share for the first quarter of 2010.
Feb 25, 2010
2008
Public Service Enterprise Group Annual Report, Year Ended Dec 31, 2008
Public Service Enterprise Group Incorporated (PSEG) reported 2008 net income of $1.188 billion, or $2.34 per diluted share, compared with $1.335 billion, or $2.62 per diluted share, in 2007. Income from continuing operations fell to $983 million from $1,325 million, driven mainly by an after-tax charge of $490 million at Energy Holdings tied to leveraged lease transactions that the IRS is challenging. Power earned $1.050 billion from continuing operations, up from $949 million, helped by higher prices and sales volumes, while PSE&G earned $364 million, slightly below $380 million in 2007. Operating revenues rose to $13.322 billion from $12.677 billion. The filing highlights exposure to the IRS leveraged lease dispute: $1.2 billion would become currently payable if the company conceded all deductions taken through December 31, 2008, with $180 million deposited to cover potential interest and penalties of $151 million if the IRS prevails. PSEG also reported that Power would have needed about $1.1 billion in additional collateral had it lost its investment-grade rating as of December 31, 2008. Management expects 2009 pension expense to rise by $131 million and plans cash contributions of up to $275 million to pension funding. On the regulatory side, PSE&G filed a joint electric and gas rate case expected by mid-2009 with rates effective in 2010, and multiple capital initiatives are pending before the New Jersey Board of Public Utilities, including a $773 million solar program and a $698 million capital infrastructure stimulus proposal. The company repurchased 2,382,200 shares for $92 million under a $750 million authorization and raised its quarterly dividend to $0.3325 per share for the first quarter of 2009.
Feb 26, 2009
2007
Public Service Enterprise Group Annual Report, Year Ended Dec 31, 2007
Public Service Enterprise Group Incorporated (PSEG) reported 2007 net income of $1.335 billion, or $2.62 per diluted share, up from $739 million ($1.46 per diluted share) in 2006, on operating revenues of $12.853 billion. Income from continuing operations was $1.319 billion ($2.59 per diluted share), compared with $679 million in 2006. The 2006 results included an after-tax charge of $178 million related to the sale of RGE. Power, the wholesale generation subsidiary, contributed income from continuing operations of $949 million, up from $515 million, driven by higher prices on new contracts including BGS contracts, higher sales volumes, and lower generation costs. PSE&G, the regulated New Jersey utility, earned $380 million, up from $265 million, while Global and Resources contributed $31 million and $58 million respectively. The filing describes a company with strong Power earnings tied to contracted nuclear and coal output and rising capacity prices, offset by significant risks. Those risks include a pending IRS challenge to leveraged lease deductions at Resources (with $781 million of deferred tax liabilities that would become currently payable if fully sustained, plus interest and penalties), pending environmental costs such as roughly $1.1 billion of back-end technology projects at Mercer and Hudson, and possible cooling-tower requirements at Salem with an estimated cost of about $575 million for Power's share. Long-term debt declined to $8.662 billion from $10.100 billion as several notes were redeemed. Management also raised the quarterly dividend to $0.3225 per share from $0.2925 and approved a two-for-one stock split effective February 4, 2008. Credit ratings were stable to positive at PSEG and Power, with Moody's placing PSE&G's outlook at negative. Power would have needed approximately $777 million of additional collateral if it lost its investment-grade rating as of December 31, 2007.
Feb 28, 2008
2006
Public Service Enterprise Group Annual Report, Year Ended Dec 31, 2006
Public Service Enterprise Group Incorporated (PSEG) reported 2006 Net Income of $739 million, or $2.93 per diluted share, compared with $661 million, or $2.71 per diluted share, in 2005. Operating Revenues were $12.164 billion in both 2006 and 2005. Results were shaped by a $178 million after-tax loss on the sale of Rio Grande Energia (RGE), a $208 million after-tax estimated loss on the pending sale of the Lawrenceburg generating facility, and a $226 million after-tax gain on the disposal of Elcho and Skawina, which were reported in Discontinued Operations. Power, the wholesale generation subsidiary, had Net Income of $276 million, while PSE&G, the regulated New Jersey utility, earned $265 million, down from $348 million, due to delayed base rate decisions and lower delivery volumes. Energy Holdings earned $275 million, helped by the Elcho and Skawina gain. The filing describes a company in transition. Exelon terminated the 2004 merger agreement on September 14, 2006. PSEG ended 2006 with total assets of $28.570 billion, long-term obligations of $10.417 billion, and cash from operations of $1.929 billion, up from $970 million. Management expects margin improvements at Power in 2007 from higher nuclear and coal prices and from new capacity market designs, which the company estimates could add $100 million to $150 million of incremental margin. Power is also moving to resume direct management of the Salem and Hope Creek nuclear stations on January 1, 2007. Investors should weigh several contingent exposures. The IRS disallowed deductions on certain leveraged lease transactions, and the filing states that if all were sustained, approximately $773 million of deferred tax liabilities would become payable, with interest and penalties potentially adding further amounts. The Hudson and Mercer coal plant emissions agreement requires future capital spending estimated at $1.0 billion to $1.25 billion. Cooling tower costs at Salem could reach approximately $1 billion, with Power's share about $575 million, if required. Credit ratings were affirmed, but Moody's and S&P revised outlooks to negative for PSEG.
Feb 28, 2007
2005
Public Service Enterprise Group Annual Report, Year Ended Dec 31, 2005
Public Service Enterprise Group Incorporated (PSEG) reported 2005 Net Income of $661 million, or $2.71 per diluted share, compared with $726 million, or $3.05 per diluted share, in 2004. Operating Revenues rose to $12.43 billion from $10.80 billion, driven largely by higher energy costs passed through in commodity prices. Income from Continuing Operations was $858 million, or $3.51 per diluted share, versus $770 million in 2004. The results include a $178 million after-tax loss on the sale of Power's Waterford plant and $43 million after-tax gain on the sale of Resources' Seminole interest. The filing describes a pending merger with Exelon Corporation under which each PSEG share would convert into 1.225 Exelon shares. The filing states that closing is expected in the third quarter of 2006, that the Merger Agreement may be terminated if it is not consummated by June 20, 2006, and that the New Jersey BPU, the NRC and the Department of Justice approvals remained outstanding. Management guided 2006 Income from Continuing Operations to $3.45 to $3.75 per share, excluding Merger-related costs, with Power expected to drive the increase through higher margins and new Linden capacity. Power's nuclear and coal-fired output was over 95 percent contracted for 2006 as of February 15, 2006. The filing also highlights significant regulatory exposure at PSE&G, including a pending $64 million electric distribution rate request, a 3.78 percent gas base rate increase request, and a Basic Generation Service auction clearing price of 10.251 cents per kWh for the June 2006 through May 2009 period. Net cash from operations fell to $940 million from $1.6 billion in 2004, mainly due to working capital requirements at Power, and the company's debt-to-capitalization ratio at PSEG was 59.9 percent as of year-end, compared with a 70.0 percent covenant ceiling.
Feb 28, 2006
2004-A
Public Service Enterprise Group Annual Report (Amendment), Year Ended Dec 30, 2004
Public Service Enterprise Group Incorporated (PSEG) filed this Form 10-K/A, Amendment No. 1, to its annual report for the fiscal year ended December 31, 2004. The amendment supplies Part III items 10 through 14 and Exhibits 31i, 31j, 32i and 32j, which the original February 28, 2005 Form 10-K had incorporated by reference from a proxy statement. The filing says the proxy statement was not finalized because of the proposed merger between PSEG and Exelon Corporation. It reports 238,350,363 common shares outstanding at January 31, 2005, and non-affiliate market value of $9,313,972,867 as of June 30, 2004. The governance and compensation disclosures show that 2004 annual incentive awards were reduced below the maximum allowed, because year-end earnings were below business targets. The Chief Executive Officer's employment agreement was amended effective only upon completion of the merger. Under that amendment, E. James Ferland will become Chairman of the Exelon board, will have no executive duties after the merger, and will receive no severance from the merger. Deloitte & Touche LLP was the independent auditor, with 2004 audit fees of $7,686,120, up from $4,803,285 in 2003, largely due to the first Section 404 internal control review. The filing also reports ownership data as of April 15, 2005. Capital Research and Management Company held 21,196,300 shares, or 8.9%. All directors and executive officers as a group held 4,216,681 shares, which the filing says is approximately 1.8% of common stock outstanding.
Apr 28, 2005
2004
Public Service Enterprise Group Annual Report, Year Ended Dec 31, 2004
Public Service Enterprise Group Incorporated (PSEG) filed this combined 2004 Form 10-K with its subsidiaries PSE&G, PSEG Power LLC (Power) and PSEG Energy Holdings LLC (Energy Holdings). PSEG reported 2004 net income of $726 million, or $3.05 per diluted share, down from $1.16 billion ($5.07 per diluted share) in 2003, which included a $370 million after-tax cumulative-effect benefit from adopting SFAS 143. Income from continuing operations fell to $721 million from $852 million, driven mainly by lower earnings at Power, which reflected reduced load under fixed-price BGS contracts, a longer-than-planned Hope Creek refueling outage, the loss of MTC revenues and higher replacement power and congestion costs. Operating revenues were $10.996 billion, compared with $11.139 billion in 2003. The most significant event for investors is the December 20, 2004 agreement to merge PSEG into Exelon Corporation, under which each PSEG share converts into 1.225 Exelon shares. The filing states that completion depends on shareholder, FERC, NRC, SEC and state and foreign approvals, and it anticipates closing within 12 to 15 months of the announcement. Termination fees of $400 million plus expenses of up to $40 million apply in specified circumstances. PSEG also raised its quarterly dividend to $0.56 per share for the first quarter of 2005, and it projects 2005 earnings from continuing operations of $3.15 to $3.35 per share. The filing also details credit and risk exposures. S&P downgraded PSEG's commercial paper rating in 2004 and placed Power on negative outlook, and Energy Holdings' senior notes were rated BB- by S&P and Ba3 by Moody's with negative outlooks. Power could be asked to post approximately $701 million of collateral if it lost its investment-grade rating. The filing also discloses a contingent tax exposure related to leveraged lease transactions, with approximately $100 million of interest that would be assessed if deductions were disallowed.
Mar 1, 2005
2003
Public Service Enterprise Group Annual Report, Year Ended Dec 31, 2003
Public Service Enterprise Group Incorporated (PSEG), together with Public Service Electric and Gas Company (PSE&G), PSEG Power LLC (Power) and PSEG Energy Holdings LLC (Energy Holdings), filed this combined Form 10-K for fiscal 2003. PSEG reported 2003 Net Income of $1.160 billion, or $5.07 per diluted share, compared with $235 million, or $1.13 per share, in 2002, which included after-tax charges of $538 million tied largely to abandoned Argentine investments. Income from Continuing Operations was $3.72 per diluted share in 2003 versus $1.94 in 2002. Net income was boosted by a $370 million after-tax benefit from adopting SFAS 143, primarily from remeasuring nuclear decommissioning obligations. Operating revenues rose to $11.116 billion from $8.216 billion, largely from gas supply and Power contract volumes and changes in the BGS model. Management stated that PSEG is shifting from a vertically integrated utility toward a competitive energy company and aims to reduce earnings volatility through longer-term contracts and by monetizing Energy Holdings investments that no longer fit strategically. PSEG targets a 4% to 6% long-term earnings per share growth rate, reaffirmed 2004 guidance of $3.60 to $3.80 per share from continuing operations, and raised its quarterly dividend by one cent to $0.55 per share. Power faces an overbuild in generation that has pushed PJM capacity prices below $10 per kW-year, and Energy Holdings faces political and economic risks in Latin America, India, Poland and Texas. Energy Holdings' senior notes were downgraded by S&P to BB- and by Moody's to Ba3. The filing also discloses restated 2002 and 2001 results at PSEG and Energy Holdings tied to foreign currency translation errors on the RGE investment, and it identifies significant internal control deficiencies at Energy Holdings and PSEG.
Feb 25, 2004
2002
Public Service Enterprise Group Annual Report, Year Ended Dec 31, 2002
Public Service Enterprise Group Incorporated (PSEG) filed this combined Form 10-K for fiscal 2002 together with Public Service Electric and Gas Company (PSE&G), PSEG Power LLC (Power) and PSEG Energy Holdings LLC (Energy Holdings). Net income fell to $245 million, or $1.17 per share, from $770 million, or $3.70 per share, in 2001. Excluding after-tax charges of $541 million, or $2.59 per share, mainly tied to Argentine investments, earnings were $786 million, or $3.76 per share. The Argentine write-down was $497 million pre-tax, and the company also recorded goodwill impairments under SFAS 142 and discontinued operations at Energy Technologies. Operating revenues rose to $8.39 billion from $7.06 billion, driven largely by Power's BGS-related revenues after the BGS model changed on August 1, 2002. The company's segments were Power (earnings of $468 million), PSE&G ($201 million), Resources ($78 million) and Global (a loss of $302 million). Management guided 2003 earnings to $3.70 to $3.90 per share from continuing operations, and it stated a long-term target of 7% annual EPS growth. PSEG issued over $1.1 billion of equity and equity-linked securities from September 2002 onward and used the proceeds mainly to reduce short-term debt. The debt-to-capitalization ratio was 0.61 to 1 at year-end, against a covenant maximum of 0.70 to 1. Dividends were held at $2.16 per share, with a stated payout ratio of 58% excluding charges. Key risks in the filing include Global's exposure to Latin American currency devaluations and the Texas merchant plants, Resources' leveraged lease counterparties (some downgraded below investment grade), Power's credit exposure under BGS contracts, the pending BPU electric rate case seeking an approximately $250 million increase, and the Standard Market Design and PJM developments at FERC.
Feb 26, 2003
2001
Public Service Enterprise Group Annual Report, Year Ended Dec 31, 2001
Public Service Enterprise Group Incorporated (PSEG) is an exempt public utility holding company whose four principal subsidiaries are PSE&G (New Jersey electric and gas transmission and distribution), PSEG Power (generation and energy trading), PSEG Energy Holdings (Global, Resources and Energy Technologies), and PSEG Services. For 2001, PSEG reported net income of $770 million, or $3.70 per basic and diluted share, compared with $764 million, or $3.55, in 2000. Total operating revenues were $9.815 billion, and total assets were $25.397 billion at year-end 2001. Management attributed the improvement to new acquisitions, asset sales and improved operations at Global, new leveraged lease investments at Resources, strong nuclear performance and higher energy trading margins, which offset unfavorable weather, two 2% BPU-mandated rate reductions and the January 2001 securitization. The company said it expects a 7% compound annual growth rate in earnings per share over the next five years. The filing highlights a growing reliance on competitive businesses. Power, PSE&G and Energy Holdings contributed approximately 50%, 30% and 20% of 2001 net income, and management projects 50% to 55% from Power, 25% to 30% from Energy Holdings and 20% to 25% from PSE&G for 2002 and 2003. The main risk flagged is Argentina, where Global has total investment exposure of $632 million and AES has sought to terminate a Stock Purchase Agreement for Global's minority Argentine interests. Other key items include the BGS auction for New Jersey supply beginning August 1, 2002, a pending $1 billion PSE&G debt authorization, and a Goodwill review under SFAS 142 that the company said is likely to be material.
Mar 4, 2002
1996
Public Service Enterprise Group Annual Report, Year Ended Dec 31, 1996
Public Service Enterprise Group Incorporated (Enterprise) is a public utility holding company whose principal subsidiary, Public Service Electric and Gas Company (PSE&G), provides electric and gas service to about 5.5 million persons in New Jersey. Enterprise reported 1996 net income of $611.6 million, or $2.52 per share, down from $662.3 million, or $2.71 per share, in 1995. The filing attributes the decline mainly to a one-time $59 million (25 cents per share) earnings reduction from the BPU's December 31, 1996 Order resolving Salem and other regulatory issues, which required $83.9 million in customer bill credits and a forgone $12 million in deferred energy costs. Total operating revenues were $6.04 billion, and PSE&G operating revenues were $5.83 billion. The company's key concern is the shutdown of Salem Units 1 and 2 since mid-1995. Salem Unit 2 is expected to return to service in the second quarter of 1997 and Unit 1 in the fall of 1997, and the filing states that the inability to return these units to continuous, safe operation could have a material adverse effect on Enterprise and PSE&G. The NRC placed Salem on its Watch List as a Category 2 facility. Regulatory change is also significant: the BPU's draft Phase II report proposes retail electric choice beginning October 1998, and PSE&G withdrew its 1996 rate filing in response. Credit ratings carry negative outlooks at all three agencies. Common dividends were $2.16 per share for each year shown, and Enterprise repurchased 12.7 million shares for $350 million under a program that concluded January 17, 1997.
Feb 27, 1997
1995
Public Service Enterprise Group Annual Report, Year Ended Dec 31, 1995
Public Service Enterprise Group Incorporated (Enterprise) is a public utility holding company whose principal subsidiary, Public Service Electric and Gas Company (PSE&G), provides electric and gas service in New Jersey. PSE&G comprised 85% of Enterprise's assets at December 31, 1995 and produced 93% of its 1995 revenues and 88% of its net income. Enterprise reported 1995 net income of $662.3 million, or $2.71 per share, down from $2.78 in 1994, with the decrease attributed principally to increased operating expenses and lower gas sales from PSE&G, partly offset by improved electric sales and EDC gains. Enterprise has announced its intention to divest Energy Development Corporation (EDC) during 1996. The most significant near-term risk is the nuclear fleet. Both Salem units have been out of service since mid-1995, and Salem 1 steam generator inspections revealed degradation, so its restart, previously planned for the second quarter of 1996, will be delayed for a substantial period. The filing states that the inability to return these units to safe, continuous operation could have a material effect on financial position, results and cash flows. The 1995 aggregate capacity factor of 62% fell below the BPU's 65% standard, producing a penalty of about $3.5 million, and the filing projects a 1996 penalty of $11 to $12 million. On January 16, 1996, PSE&G filed its "New Jersey Partners in Power" Alternative Rate Plan with the BPU. The plan would shift fuel and replacement power risk from customers to PSE&G, discontinue the Levelized Energy Adjustment Clause and Nuclear Performance Standard, and include a $50 million electric rate reduction upon approval. The company also outlined a deleveraging plan to retire more than $1 billion of debt over five years while funding its five-year construction program from internally generated cash. The filing notes that PSE&G cannot predict the outcome of the BPU proceeding.
Feb 23, 1996
1994
Public Service Enterprise Group Annual Report, Year Ended Dec 31, 1994
Public Service Enterprise Group Incorporated (Enterprise) is a New Jersey public utility holding company whose principal subsidiary, Public Service Electric and Gas Company (PSE&G), provides electric and gas service to about 5,500,000 people, roughly 70% of New Jersey's population. PSE&G accounted for 85% of Enterprise's assets and 93% of its revenues in 1994, and 91% of net income. For 1994, Enterprise reported total operating revenues of $5.92 billion, net income of $679.0 million, and earnings of $2.78 per share, up from $2.50 in 1993. Dividends were $2.16 per share, unchanged from 1993. PSE&G's operating revenues were $5.5 billion, with 68% from electric and 32% from gas operations. The filing emphasizes a competitive transition in the energy industry. Enterprise announced a reorganization effective March 1, 1995, creating a new ventures and services subsidiary and three business units (fossil generation; transmission and distribution; customer services). PSE&G's nuclear operations were reorganized as a business unit in fall 1994. The filing flags stranded-cost risk, a BPU Energy Master Plan calling for regulatory flexibility, and the phase-out of rate-base/rate-of-return pricing as possible future developments. Construction expenditures for 1995 through 1999 are expected to total about $3.2 billion for PSE&G, and total capital requirements for 1995 through 1999 are $5.94 billion including EDHI and debt retirements. The filing also highlights operating risks at PSE&G's nuclear units. The NRC gave Salem a "3" rating in Operations and Maintenance following a decline in performance, and requested a meeting with the Boards of Directors in mid-March 1995. PSE&G was fined $500,000 over the April 1994 Salem 1 shutdown. Nonutility subsidiary EDHI had net income of $60 million in 1994. Its results were affected by lower EDC gas prices and by the Continental Airlines aircraft leases, where Continental missed a February 1995 payment and proposed reducing rentals by approximately 50%.
Feb 23, 1995
1993
Public Service Enterprise Group Annual Report, Year Ended Dec 31, 1993
Public Service Enterprise Group Incorporated (Enterprise) is a New Jersey public utility holding company that owns no physical properties. Its principal subsidiary, Public Service Electric and Gas Company (PSE&G), provides electric and gas service in New Jersey, serving approximately 5,500,000 persons. PSE&G accounted for 86% of Enterprise's assets and 93% of its 1993 revenues at December 31, 1993, and 96% of 1993 net income available to Enterprise. Enterprise's nonutility businesses are held through Enterprise Diversified Holdings Incorporated (EDHI), which includes Energy Development Corporation (oil and gas), Community Energy Alternatives (cogeneration), Public Service Resources Corporation (passive investments) and Enterprise Group Development Corporation (real estate). Financial results for 1993 show total operating revenues of $5.71 billion and net income of $600.9 million, or $2.50 per average share, compared with $504.1 million, or $2.17 per share, in 1992. Net income included a $77.6 million property impairment at EGDC ($50.5 million after tax). PSE&G's base rates increased effective January 1, 1993, under a December 31, 1992 settlement that provides for additional annual base revenues of $295 million and a 12% return on common equity. Net cash provided by operating activities fell to $1.008 billion from $1.340 billion, mainly due to an underrecovery of energy and gas costs and higher New Jersey Gross Receipts Tax payments. Total capital requirements for 1994 through 1998 are forecast at $7.335 billion, and construction expenditures for PSE&G are expected to total about $4.2 billion over that period. Key risks highlighted in the filing include a pending NJDEPE final water permit for the Salem nuclear station, with cooling-tower retrofit costs estimated at $720 million to $2 billion if required; an IRS Revenue Agent's Report proposing about $121 million of additional federal tax, plus interest; and multiple environmental cleanup matters under CERCLA and state law. Note that the filing describes the 1993 nuclear capacity factors and regulatory standard, which provided a reward of approximately $3.9 million for the 77% aggregate capacity factor.
Feb 25, 1994