PSEG plans to invest $15 billion over the next five years

Written By: Stratton Report
March 6, 2017


On March 6, PSEG announced that it plans to invest approximately $15 billion over the next five years upgrading its energy infrastructure, and reaffirmed its 2017 earnings guidance of $2.80 to $3.00 per share.

Ralph Izzo, PSEG chairman, president and CEO, stressed that the holding company had delivered double-digit growth in both its rate base and earnings in 2016 at its utility PSE&G.

PSEG noted that it expects the utility to represent approximately two-thirds of its non-GAAP operating earnings in 2017 and its share is forecast to continue to grow.

Over the next five years, the utility projected a baseline $12.3 billion infrastructure program which it predicted will deliver high-single-digit rate base growth, as well as extensions and expansions of the baseline investment program that should expand PSE&G’s five year capital program to $13.8 billion and a 9 percent growth rate. Izzo explained that PSE&G has the potential to become a model utility of the future and that these long-term opportunities to invest in the utility of the future are not reflected in current capital expenditure plans.

Izzo noted:

Together, these investment programs could extend our existing forecast of a baseline of 7 percent and up to 9 percent compound annual growth in the utility’s rate base well into the next decade. By investing in energy efficiency while making improvements to our electric and gas infrastructure, we think utilities can help customers save on their monthly energy bills and still provide a stable rate of return for their investors.