PSEG commits to $12 billion in transmission investments
In 2014, operating earnings from the company's regulated business will represent about 55 percent of earnings as PSEG makes critical infrastructure investments
Public Service Enterprise Group (PSEG) will spend about $12 billion in capital investments during the next five years, primarily driven by increased investments in transmission to maintain reliability.
Public Service Electric and Gas (PSE&G) is implementing a 5-year capital program of $10 billion, a 20 percent increase in the level of spending over the prior five years. The additional investment is primarily due to PJM-mandated transmission upgrades to relieve projected system overloads and maintain reliability for millions of customers.
In 2014, operating earnings from the company's regulated business will represent about 55 percent of earnings as PSEG makes critical infrastructure investments.
The company is poised to make additional investments under its proposed Energy Strong program that would harden New Jersey's electric and gas delivery systems against severe weather. If approved, the plan would protect substations that were heavily damaged by water during Hurricane Irene in 2011 and Superstorm Sandy in 2012, among other resiliency improvements.
Hearings on the proposal at the New Jersey Board of Public Utilities are set to conclude March 7, with a decision expected as early as April. The investment dollars associated with Energy Strong are not included in the utility's capital expenditures and would be incremental once approved.
The utility's transmission investments of $6.8 billion — up about $2 billion — account for about 70 percent of PSE&G's capital investments and represent 60 percent of PSEG's total capital expenditures during the next five years.
The power generation unit is continuing to focus on adding capacity in an economically efficient manner by increasing the output at its nuclear facilities by 130 MW and at its combined cycle power plants by 150 MW.
On January 1, PSEG began operating the Long Island Power Authority's electric system under a 12-year operating services agreement. PSEG Long Island is expected to provide $0.03 earnings in 2014, growing to $0.07 in 2016.
Public Service Enterprise Group (PEG) is a publicly traded diversified energy company with annual revenues of $10 billion, and three principal subsidiaries: PSEG Power, Public Service Electric and Gas Company (PSE&G) and PSEG Long Island.