Dive Brief:
- Public Service Enterprise Group reported first quarter net income of $586 million, or $1.15/share compared to $386 million in the same period last year.
- Company results got a boost from its capital program, colder than normal weather and the recovery of storm costs related to Hurricane Sandy.
- PSEG Power reported operating earnings of $278 million, helped by the improved availability of its gas-fired combined cycle fleet and successful hedging of its energy output.
Dive Insight:
“PSEG performed extremely well in the first quarter” Ralph Izzo, chairman, president and CEO, said in the company's earnings statement. Operating earnings for the first quarter of 2015 were $529 million, or $1.04/share, compared $515 million last year.
Returns from the company's expanded investment in transmission added 3 cents/share to earnings in the quarter. Winter weather, which was significantly colder than normal, also had a favorable impact on gas volume and demand. The company said its share of Sandy-related insurance settlement proceeds, as well as a decline in storm-related repair costs, helped offset pension expenses.
PSEG reached a settlement with its insurers for Sandy-related claims, providing for recovery of an additional $214 million. Over 2012 and 2013 the company recovered just $50, but PSEG said in its earnings statement that "the final settlement fully compensates PSEG for spending eligible for insurance recovery on Sandy-related repairs."
At PSEG Power, energy hedge prices and an increase in hedged volumes helped to offset lower market prices. The company said an anticipated decrease in average PJM capacity prices to $168/MW-day from $242/MW-day reduced PSEG Power’s quarter-over-quarter earnings by 9 cents/share.
“PSE&G is delivering on the promise of its expanded distribution and transmission investment program, while the reliable performance of PSEG Power’s generating assets and its gas market expertise during one of the coldest winters on record helped us deliver value for our customers," Izzo said.
PSEG also said it was maintaining its full-year forecast of operating earnings at $2.75 to $2.95/share.
