Public Service Enterprise (PEG) 31 Oct 232023 Q3 Earnings call transcript

Ladies and gentlemen, thank you for standing by. My name is Rob, and I am your operator today. I would like to welcome everyone to today's conference, Public Service Enterprise Group's Third Quarter 2023 Earnings Conference Call and Webcast. [Operator Instructions] As a reminder, this conference is being recorded today October 31, 2023, and will be available for replay as an audio webcast on PSEG's Investor Relations website at https://investor.pseg.com.

I would now like to turn the conference over to Carlotta Chan. ahead. go Please

welcome On and and Third XXXX and Quarter and Good call to are Presentation. CFO. President Vice today's Cregg, President Ralph Earnings Dan morning, Executive PSEG's LaRossa, CEO; Chair,

and slides and website estimates call shortly. contain during IR and uncertainties. PSEG's attachments release, release investor.pseg.com, various are press for discussion subject other on at be are will XX-Q and today's and forward-looking that today's to our earnings statements our posted filed risks discussed The matters

discuss with also which in from today's in accounting our will and include earnings, We non-GAAP as disclaimer measures differs materials. financial We GAAP a net on operating IR loss reconciliations regarding net website reported principle, non-GAAP statements of the States. and income generally or United in our accordance accepted forward-looking

Ralph remarks, Dan's I now will turn XX-minute Ralph a call prepared will conduct LaRossa. question-and-answer over to session. the and Following we

to to reported quarter thanks compared Carlotta. and for the of Good you, to quarter net XXXX us XXXX. third Earlier morning results. $X.XX net of share income income joining per Thank third for per of third share everyone, today, PSEG's $X.XX review quarter PSEG

per Non-GAAP in third the earnings were compared XXXX. quarter share operating $X.XX to per the $X.XX of for quarter third share

Our with X, shown the non-GAAP results in provided exclude and which earnings we items Attachments X release.

& We are expectations. very which are Other PSE&G Power to pleased of continuing meet PSEG results with planning the and fully our both

third in $X.XX detail track share. PSEG's with growth to X% Dan PSEG on earnings following year my months, long-term to X will the discuss our earnings also greater of non-GAAP and first is we guidance reaffirmed earnings This which guidance XXXX per announcement our the our of to achieve results, operating year Through outlook XXXX remarks. quarter morning, full X% $X.XX both full

quarter constructive very a fronts. several on had We

PSE&G bringing billion year-to-date during invested quarter, approximately in $X.X the third utility, to $X infrastructure the energy spend billion. Our

than our total expected and energy billion, $X.X efficiency original on year ahead higher our billion, spend plan execution is future of $X.X full advancement slightly capital XXXX, energy now scheduled of infrastructure the to For clean our programs.

PSE&G Overall, advanced just On million replacements. X.X front, smart and over planned within remain meter X.X cost schedule installation million on metering parameters. of and the into we completed the has half service our placed of the

seen have energy We efficiency which bills. and for their customers strong helping save solutions demand our PSE&G's lower is energy

you strong the did on demand energy give To solutions energy now PSE&G more a just the a we years year month in some how Consider ago. is. entire efficiency sells for than few single perspective that efficiency in

and system In support continue New well energy addition, economy of electric new part increase to the electric infrastructure an to upgrading due vehicle in transition as penetration. adding in we our mile last distribution Jersey decarbonization by as of the the

trajectory also energy current X% rate CAGR through rate Jersey extension to support their critical investments levels. assumes at These base of PSEG's The X.X% XXXX. New of of base growth investment our programs our low annual an end

above their higher and of efficiency run filings base Within current range end the a rate the amount for of infrastructure is rates. investment upcoming potentially energy upper

new adding the the a for to XX, energy term the date week, January upcoming includes this targets continuation X.X Last begin and total state current filings. X-year utility EE for of XXXX, in a June framework requested for updated The of XXXX, period. filings net run be annual BPU outlines period. to updated The start BPU years robust BPU's second reset through the to energy X-month X-year and efficiency X, aligned with utility-specific while reduction the extension the period a

electric X.XX% annual aligned frame. with of reduction program X% The for X.X-year energy quantitative years annual unchanged. prior the updated XXXX XXXX and remain to for utilities targets propose time and the EE directs the of It reduction indicators net during gas goals also and performance compressed

XXXX a for higher month, II of approved the our settlement to cast main current December a through unprotected program this GSMP rate XXX minimum steel at BPU previous iron $XXX extend provided and run replace than million modestly miles a and our to of Earlier of investment programs.

$XXX provided the rate the million the balance in settlement, through recovered For $XXX million X the addressed update clauses in will periodic rate investment future be with case.

our extension II, advance. by methane of target in we lease being XXXX broader is us GSMP This track XX% reduced from II to period. methane through levels. remain the over enables Through least emissions in held approximately PSEG's at filing achieve system-wide XX% long-term on to XXXX XXXX GSMP reduction

also conclude. phase approval next the proceedings by provides for the filing in expect restart filing, We'll II utility existing after the this extension gas introduce hydrogen restarting this of natural of intent the blending II and GSMP The gas natural We with stakeholder renewable our which distribution future system. to XXXX that January of includes January XXXX. of projects pilot beginning into GSMP work

these keep this relation is provides and our remain our with make years on customer continue we customer employees While New bills agreements wage to the all costs X to in Having X of labor certainty labor new expenditures. recently to we cost largest with helps our expense. represented of affordable of unions. of importance X-year underscore our predictability. Jersey us and affordability O&M our manage want labor investments, diligently completed focused We I

as compare both among lowest natural in remained to bills for well basis the residential customers region. to well as continues typical the in peers on a the gas very nationally. wallet region Monthly PSE&G share

to commodity October effective lower Beyond that, therm approximately to season, the the per $X.XX for XXXX gas X. PSE&G's heating upcoming charge approved BPU the request

for commodity This XX% of a is January XXXX. utility X, pass-through charge, has total since the simply a declined which gas by

The carbon-free producing our XX.X period to factor operations. capacity nuclear at XX, year-to-date XX.X% the Now hours nuclear energy. fleet turning PSEG ended of baseload terawatt September operated during

continuous days Salem entered between XXX Our for Unit its refuelings. breaker another to scheduled run after XX% completed outage breaker refueling just operating owned fall X and

XXXX XX-month lower advisory capital reactor recommended through to X part at as project Our of a our cost from being XX-month boiling to ongoing. solicitation is that recently cycle PSEG transmission -- proposal Window solution. projects comprehensive competitive included PJM as an to transmission our committee their expansion its efforts transition water staff Related refueling to of part Creek submitted a Hope

million considerable an outlines of similar we are a leverage December. and in date final expected example opportunities XXXX. we $XXX announce decision project investment of that skills is that in-service Board arise. with another PSEG's to and pursuing, PJM The our transmission intend their will regulated opportunities This

to Switching topics moment sustainability. for a

You as race submitting with the X campaign of now our in XXXX submission encompassing in validation X, will committed X September back X targets We SBTi's and September to the Nations targets United of initiative. scopes recall under intention to of part science-based emissions process. that we is review proposed to made and the

now our conclude additional of lift-out I'd accounting consider improving recapping We our exit and August, business. results we fossil pension of business and reduced amount generation. our from order with the the following and the streamlining a to like case. the risk the and some of progress business by of pursuing significant we'll of successfully profile upcoming mitigation the rate a on regulatory and variability predictability wind made lower February offshore on future goal we've our have towards sale

of viability our tax decision enhanced baseload to by helped that helped production stability nuclear improved XXXX. them strategy. New of record business retain And of the begins on important financial fleet, critical with secure executing to we our revenue the a Jersey January These the assets extend carbon-free have actions credit of PSEG's energy track

require nuclear pay It ability sell a from PTC flows a new the visibility financial and to solid us growing maintain our a or investment our program. will capital does of assets competitive X-year decade-long not to cash that any Having any us to to equity supports dividend. fund issue help profile

want and important our XXXX to plans for I closing, earnings providing In updates. share financial other guidance

distribution electric base you will we'll public. we December, once case the know, rate and our with you update file is this As that gas parameters and

complete expect after expect We business business to to in non-GAAP mid-December, operating provide us completed. XXXX planning guidance normal is earnings you so plan shortly that our can

upcoming XXXX CapEx efficiency the EE to a of rate round the followed new One, XXXX In the by covering early filing intend recent base and update through X program projections our to GSMP extension XXXX. extend end to next reflect to current and XXXX, energy December, through we out of programs the XXXX II through filings. existing EE

Dan longer-term inform for now the forward available turn of CAGR and will earnings projections. expect updates the investor to to operating over the rate assumptions more our questions long-term base we full call capital will update. be a results in details These remarks. for after base his plan and and And for the rate roll post capital on I your XXXX will January

good Thank everybody. morning, and you, Ralph,

of to third of million or $XXX of net As for $XXX Ralph $X.XX earlier, third compared share per PSEG quarter per mentioned income the million XXXX the for quarter income of or reported $X.XX share XXXX. net

earnings and of contribution Non-GAAP or provided you quarter third regarding operating the by the $X.XX XXXX information for business year-to-date third or share for $X.XX million to compared and XXXX. for XX the per were We've Slides share $XXX quarter per to $XXX XXXX. share with per quarter of earnings third on million of X non-GAAP the operating

Starting that share million non-GAAP quarter Slides year-to-date net the the with per $X.XX of the per third $X.XX or share per XX operating for you of and XXXX million charts quarter $XXX reported XX which take with earnings contain changes compared through or business. periods in major and quarter-over-quarter third and $XXX XXXX. income waterfall net PSE&G, share by

the or PSE&G for in distribution in $X.XX non-GAAP growth GAAP operating quarter of $XXX programs expense. margins The or and as to third million both of as lower per per from O&M quarter results for resulting transmission continued $XXX and of main replacement earnings well were The drivers the investment in XXXX. compared share 'XX for quarter energy non-GAAP share million infrastructure $X.XX the had clean and third

to pension per of quarter. items interest by $X.XX higher, II. XXXX, returns reflecting transmission our with earlier since and offset were higher. the and favorable anticipated along margin investment expense was was credits, OPEB lower from the year income quarter share $X.XX Electric third depreciation Energy investments from Strong incremental Compared share resulting higher per These

by $X.XX O&M $X.XX share primarily XXXX, quarter Gas interest per reflecting investment. respectively the expense compared depreciation higher, growth driven per Lower and expense $X.XX margin investment. of clause increased share, per our added with continued quarter third share compared third to $X.XX distribution and and the XXXX, in was by GSMP of recovery

investment in $X.XX from year quarter. end resulting XXXX's returns, income comparison unfavorable OPEB combined scheduled credits lower a the pension with XXXX, to earlier in share resulted to Lower per

timing X $X.XX of impact to year per the recorded to flow-through through taxes compared tax of over other in net rate, share third which XXXX. nets and a quarter favorable a full taxes quarter of an Lastly, effective had the

the by warmer than third than measured Index, quarter as Weather the during quarter, the XXXX. Temperature-Humidity X% was cooler third of normal, but XX%

As the variances SIP we've of enabling other while mentioned, the program. limits positive mechanism its gas widespread and negative impact of electric effect or sales XXXX margins since adoption efficiency to on the promote energy PSE&G and in weather

margin single electric program of during to the PSE&G billion each year. spending, Growth invested approximately mechanism positive driver approximately largest gas in third quarter On of execute by under year-to-date. the the of to and track the up ever SIP is billion capital and will number customers, investment and a continues in X% its $X.X on be $X

investments of facilities, investments, our infrastructure EV rollout new to and cloud, spend ongoing GSMP The advancement the energy smart to mile infrastructure clean our adding accommodate in upgrades Energy increase meters replacements the program, penetration. program, and T&D II an electric last including energy II in efficiency continued and energy program Strong in the includes

amortization net earnings of accounting increase actions we've on ratemaking to PSE&G During authorizing and method loss In or actuarial of the gain component of results. purposes. the impact predictability February our the modify calculating taken limit approved the for an to XXXX, its the our XXXX, BPU financial for order pension of

the change and year This effective is for XXXX calendar forward.

PSE&G's XXXX, to billion. year is $X.XXX of non-GAAP $X.X at full the forecast unchanged billion For operating earnings

Moving Power to Other. & PSEG

pension lift-out share per quarter $XXX the Power transaction. & Other XXXX reflecting of third the charge a of loss associated with settlement million For or the reported largely $X.XX PSEG net

to PSEG $XXX and the associated $XXX third quarter transferred million to and Prudential of Insurance net $X billion assets This net charge $XXX related a share compares of loss or million the $X.XX of approximately XXXX. obligations of of the tax plant The per onetime Power other pension million, for settlement to was Company. noncash

of the per of effect third pension in earnings there material XXXX. share remain the the of XXXX. plans $X.XX providing operating share funded, XXXX non-GAAP the quarter earnings compared After for operating of $X.XX out, per million $XX on our and impact no for were third is earnings or lift our Non-GAAP or quarter well million non-GAAP in operating $XX to

quarter majority increase that of output during average per We of $X megawatt higher to previously of mentioned hedged $XX winter the the hour XXXX the most hour Power realized with approximate XXXX, of megawatt first our approximately which increase. the rose that PSEG price in pricing driving per

quarter gross at of higher Hope from compared generation $X.XX the improvement margin the a benefit that certain of included per year's absence refueling the gross primarily The requirement $X.XX which of For per had third cost full and of margin a share BGS per XXXX, end last by the share, of to prior roll-off also total share the third year. outage $X.XX of in load started Creek quarter. to serve, resulting rose a reflecting a higher contracts added resulting

partially lower OEM of in quarter quarter prior year share, partly variances capacity revenues third $X.XX XXXX's improved with outage with Hope offset Creek per absence incurred by the third positive comparisons in by refueling ago $X.XX expenses capacity auction. the quarter. were were of by that year per compared consistent These the share cost driven

from of unfavorable other compared tax partial from quarter with Lower and quarter share per $X.XX to reflecting credits XXXX. first interest higher of of ago third income reversal the favorable or versus while the the quarter, $X.XX quarter XXXX. XXXX $X.XX XXXX, amortization expense third per was were lower Lower unfavorable. OPEB unfavorable was the depreciation benefit benefit expense a effective and share the Taxes $X.XX from investment compared returns year pension

in operating the and hours quarter factor a periods, side, during running terawatt hours the produced XXXX, X.X and capacity the nuclear terawatt On fleet for period at and year-to-date XX.X% of quarter the third approximately XX.X respectively. the year-to-date for XX.X%

average and PSEG hedged megawatt of is to XX% year generation approximately For has XXX% production an the price of XXXX hours of $XX output this per XX to XX full forecasting terawatt at hour.

fleet & the XX% to non-GAAP $XXX XX XX% operating for forecasted for Other hour. megawatt and to nuclear XXXX, hedged of generation earnings forecast the For XX this average PSEG to year. of per produce at of is output hours million baseload to Power The $XXX an price is million terawatt at full $XX of has unchanged

previously annual 'XX, of expected price increase This of in in the forecast first discussed. reflects realization the majority average XXXX the of a the quarter hedge as we

captured For PSEG the in & higher year, update is balance to of expense November our largely the expected interest XX Power reduce Other results.

financing Touching activity. on some recent

XXXX billion, As PSEG had cash liquidity year. levels of of including cash million million on million substantially $XXX notes September XX, issued Power August of due $XXX of $X.X seen below elevated XX, approximately last the PSEG notes secured August $XXX is secured due August, postings at of $XX million September hand. of which In collateral net total medium-term available X.X% had issued medium-term X.XX% and XXXX. PSE&G

medium-term X.XX% secured the notes of due at PSEG quarter, senior million end senior issued of million X.XX% third and of the October $XXX $XXX X.XX% maturity. In $XXX XXXX notes XXXX. retired of October million September, notes to through PSE&G Subsequent

locks notes, of Prior million to had maturing including of of be million benefit the and expense. these will November. the the of pricing notes, the will this fair executed, PSEG used were be million, $XXX for sale general of a amortized senior purposes, interest positive partially Proceeds value life over offsetting the $XXX which of this corporate $XX senior notes from repayment debt treasury

XXXX. variable rate Power maturing of a PSEG outstanding in $X.XX September of maturing March million a outstanding of PSEG rate of had term XXXX April billion term had XXXX, As loan variable $XXX XX, loan XXX-day and

of the the million variable the swapped of of power loan PSEG serving end a to rates. term quarter, higher fixed rate had interest of a impact $XXX to from the As mitigate

swaps, As of half debt approximately September a was our reflecting variable which total down rate, of since X% XXXX. our at year-end is XX, by

to to the staggered variable position given financial generation PSEG collateral limited a business. regulated maintain our improvement with support and debt position, funding Power maturity in schedule continue solid a to exposure our We rate cash

non-GAAP full & forecasted $X.XXX million. is $XXX earnings forecasted and guidance billion XXXX PSEG's per to Other PSE&G at $XXX million $X.X we $X.XX of to billion operating to year $X.XX Power is closing, are between share. In reaffirming PSEG

operator, formal ready our remarks. begin concludes to the And That are session. we question-and-answer

from Campanella The Instructions] Nicholas first with question is [Operator Barclays.

that pension out, lift out, volatility So I ask done wanted if the past on have year take understanding headwind, kind to to of just -- the I accounting 'XX, the here kind maybe affect lot to also order. broad looking you derisking your of had market forward underperforms the you could a that you've of but this

just you think drag pension Is should for we a performed about that a as you've helpful. kind expectations could year-to-date about for -- we drag to And just any well or thinking on there the 'XX even 'XX? had Just earnings how how be should year-to-date? be as sense has contribution detail of us any relative give would of versus your percentage pension

Sure. Nick. Yes,

So listen, wave his team first right? recognizing appreciate volatility. less and it, reduced We sine I'll benefits regulatory here. And of the team the the sign engineering you there's of already all, Dan the of in -- terms, we're I had we've that seeing talk and and did work -- the

for that let Dan that So we've But wants he provide details that this more But some any good work just nothing seen expect we've -- we of you 'XX. problematic there's us to result look it's the at that. give or to going year. on accomplished as become I'll

been we've see. able to of that's It would we set eliminate markets attention, do what effect we magnitude because of we out the to what really moving And doesn't but Yes. the think have do. still minimize

in been few the months. moved, months where markets couple another have year, they've of to the go bit We a see land. little as last -- got we to step off So we through we

the I of as will to done at through we lessen it think effect. And or O&M movements, what move that see the we to anticipate work we not we that immune that those budget. now, I is think magnitude can seeing year-end what we've still some of manage we're intend looking the overall but we're through as something

details to as forward. just but model, the at through CapEx. That's of roll if putting you bias on you a think guess ahead CapEx there's Obviously, about you're about proceeds, in more of plan get And how as see equity are hire here helpful. the of nice those we'll January, I Okay. higher And we thinking kind that all?

No. been There there we is intention plan no front there go that no you. no and has as is capital have through -- any the in equity we have to of issuance

had $XX the look We're utility years, that you we've 'XX a within that range X So as billion the through performance. great for billion $XX.X still to across billion all year. $X.X is

on forward but So able fund But there range. helpful, continue move to of we've we're that that within there you're to the is it equity even what end is been going that. need great no And range. to still high it's and overall to seeing is our

just me no been kind down equity, and double of to assets. no let on no we Nick, And everyone sale that, of can, that right? We've saying equity

So...

question Guggenheim Shar from The Pourreza the of next Partners. is line with

going PTC question and guidance on obviously, and your Nick's for year I tweak PSEG slightly setting, with a then big it's for right? the the [indiscernible] nuclear just case to me filing rate be around Let mean, 'XX.

rate the 'XX I various mean, the a I if guidance guess this resolution thinking when forward of we're GRC roll incremental year. year obviously, this you assumptions regulatory guess, about XQ, to that of to be into And swift even changes a under base and PSE&G how I scenarios at do part we presented sort directionally. earning lag the so could for there? any preceding was do of and you headwind in you're on ago, plan interest embed puts how $X.XX assumption takes any your about think the

for that we're details out Dan chance you do parts hit going we're to but with that with again, what And questions. to here, great considering. to answer some the our give frame lot on the December. driving time with All come Shar. Yes, earnings of our a all And that -- moving in is has I'll

So can those of on give Dan, you just items. some any more

where And think, as let there's we're the on and sure. assumptions I Yes, some finalize know. you going always you heading make I step rate you're We'll to forward, think case.

point during some quarter. at that this file will We

We've through. to XX move said somewhere to usually it X between that takes months

PTC and to of I get So make going set our those assumptions and we're until that. we'll to exactly a guidance that hand, you we'll within that regulations, make have love where would can around to tell assumptions able that. do things there's that you I be going think reasonable But land. we know uncertainty in to that we're

[Technical on We the interest we the see be And or over our the year we've seen moves by guidance rates driven last Difficulty] will that so. really captured what market. in

we'll able will we'll so speak to and be range respect And into and still guidance play, those to all for think 'XX, do of come that I overall an soon. confidence with with

it seems And don't to corner, about risks in thinking want 'XX you again, 'XX. Is probably assessment? more tailwinds to and shift as tail a that but we're there's fair from that I a like that put

put look, forth think we'll Well, what is a balanced I view.

kinds come both together. you into of play that the estimate question as of think things the and referenced, before put those the things will are from Nick's that that some I we

variability business got up, just But that most not we're that going to think the decoupling. is the captured of I weather worry Ralph a because way movements rate smaller have about mentioned. still pension set We've We've interest to the of our moves.

confidence on the when put so it out. have able work last been to really is doing to or going over with that that we the to to we pay off range be years enable So speak X.X us think I

decision to improvements CapEx plans I for some around nuclear guess, then the guidance? a point, especially lastly, mean mean, guess, guidance? just you on case have back had how closer I a PTC those And a And you on burner what the you've -- do hearing you it. modest I getting I nuclear, with business just Got are the are it? refueling plan cycle,

Yes.

a I'd Shar, So say things on of that couple front.

we're reinforce we PTC counting We year. said Just floor, right? to the it that stability So not above anything that. introduced last or beyond again on on the

that's is set. way the And our plan

And a we're you pretty little is couple well on times, that for ahead should refueling -- that and And as be upgrades dividends and be we the 'XX those though Hope then all the transparent sale that moving there. surprises of we more us, on So the... a we will from pretty -- CapEx, progressing on very probably pay in said clear bit cycle go have at we'll Creek work 'XX the something cal front. and expected the timing on Effects hearing that on as we plan for that. those of down

it. of When plan guidance? X again, just do from questions. with of sorry, my giving lot 'XX And hit getting a you Got questions on

We have we it that finish going said planning give after our we're board. to process our business with

review have December. do that our We we with in Board a

December. in doing it be we'll So

Chopra question next ISI. Durgesh line with is the Evercore from of Our

a just on equity. Ralph, finer point

to going How Dan's I -- -- But puts that and the this balance investor June of in which now? is as obviously capacity. sheet a think the $X how billion that look in this wheelhouse. the slide talked does now does be takes deck, kind look you showed

to efficiency, XXXX? plan, expect there's part then Should opportunity. equity and no forward obviously clear, transmission we roll there's X, energy the roll as And forward the be just you well as to you as

Yes.

as both like the or good The the from you. Dan's it believe, We at are BPU forth. some going us. very I that answer, efficiency looks things the again, those put give Dan need for news same of But details. anything to energy do see to give we be transmission not is triennial you opportunity But that growth I'll look, exactly equity as So the -- that it. well to

Yes.

right. you guys If Ralph is

talked We forward same are with that moving we raise that about earlier. capital still

will from next update. in from what is PJM period. triennium in energy We referenced heard this this what state that Ralph efficiency looking on at remarks, his we've X-year an providing and both be back the next from earlier

of And exact update way so will that is the will a forward. roll the that, we will do range But that as go have through we that be we -- capital.

the still that we we We that other without think incremental. of fund will side And that, to look the I need range. look will with should confidence have But standpoint debt capacity. that what us for be with remains from able update that on us of -- you the to will

clear nuclear on topic PTCs. there. we about of I saw just hedged. output are you've of mean, then Very And XXXX, the awaiting increased are maybe still Excellent. just obviously, the I for here. guidance How thinking 'XX? percentage hedges you

are your process like to as on to you you nuclear are Or hedged forward -- clarity But PTC? before roll there? anticipating XXXX, is some you going less be than what thought

Yes.

think have some they of to may and come try us, is solutions calculation So is through come ultimate think that where to those So to think that try to folks will try don't the and through answer through we guess what you to right? you the viability when have what that we've of uncertainty, we land. to said the then may what exact that's going be do and made

to reacted of background against kind that some of that of we've uncertainty. the And thinking

that we point, would move at doesn't out mean out. will that PTC that exact doing And that sooner that so be means that we forward any continuing rules come not thinking we hope some than reason, for would come Those be to about right? at later hedges may pace how

with hedging from versus shaped what within different had It's what terribly I doing a XX I'd we're our thinking But been as think we don't you're about just now say it. doing how general rule.

the quarter. for I team to you color, the and appreciate congrats that and Dan,

comes question from line Stanley. of with Morgan next the Our Arcaro David

on rate touch your if Wondering could see. you case. Let's expectations the latest for

coming for file capital Just your requirement, has or thinking on this anything the you expectations to that as revenue what O&M around side up changed would shift quarter. anything your the

said that Yes. I nothing saying our been -- No, along with all what really are. we've there's plans

whether I have people things the the asking opportunity us. the this expenses think it a be pensions, to case is only thing about, lot and you'll in pension gives rates might that right, see have that impact that of roll on other the or interest rate that us been

-- the we which on, So but keeping state which of X say would eye the exists, mechanism. not New transmission an those will about, CapEx, I only efficiency clause GSMP, energy that -- we that's would on a whether talked most Jersey, have, are be and items real with we closed opportunity the those that be our we're updates, of

really I change you is add? anything driving nothing So say Dan, us. that a to big want would to

No.

the of the is David, shouldn't case X got thing, the kind focus rate forward. -- of on implications a we go sight might any that and about an what X higher as that Just questions on rate lose with that impact interest thing be we there's to we've the could all I some think environment, of

folks, is do the I filing first And reminded we'll XXXX. rate case since this

between cases, expense. And period early so part the of saw that rate we lower interest

in we're costs we the yes, environment what trust so so would be have move could way And that current the capital. this from higher, is some seeing there and revenue through requirement overall

lower increase Net-net, where through a in of stepping interest considerable not higher does that calculate because rates. years a environment. interest rates about and we're now thinking rate were But rate into

a rate a reminder. not just that's go this pressure into as so as And we

Got Yes. it.

work going of in forward settlements could overall commission, they're got then commissioners. Okay. just under the you overall the And the of going new them was and maybe opportunities now if your think to on on if Great. give commission. views set new just a or I priorities we've of wondering with how That's leadership perspectives treat different at helpful. to kind you leadership

results. not David. the board Yes, And matter tell and really the gas action pleased more on program. you, I with our don't Look, modernization to they opinions took as much system have could would -- our as I be Sure. I

all that was we we and before. action our for doing action just shows the to the we're with board a move exhibited should for both in reduction aligned also but things. of real forward those helping to state. are well, of that only space the that us, quick and in positives One the methane standpoint That there continue of to work is are And you same from So as is desire the would the say the a were how opinion, that reinforce I settlement decisive things couple right? that for policies it's environment and reach

of next with question line Jeremy the JPMorgan. from Tonet Our is

of Just some bit points kind you there. laid guess, a out build wanted to little on of, I the

With the capital extension, at factoring discussions II kind this III? just plan more frame GSMP the versus transition longer-term ongoing energy the into holistically. you assumptions of can of settlement the versus GSMP looking settlement, Are the goals state's

Yes.

they would otherwise frame the way been would rate our based a it. are X that we higher here's look, agreed The upon have than years filing. So upon I at run

So real positive. that's a

X I of areas you an that were from standpoint. look investment the think when the they at concern conversation, minimal were in

of renewable policy other are the to need blending. and our gas the piece that filing conversations fair was One take place. was the natural those And hydrogen

the to from Board So wanted to continue to reductions. a to ahead commitment done the standpoint methane move get work

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other those remains decision wants run a The X from go rate iron by higher. system to in and strategy standpoint, reduce our commitment But supported on just items cast and to commission. see where and this at policy a it's And participate time on the long-term was the our that. we make think I

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III. of against consistent Yes. being low where of backdrop had the range this high the we the like capital we were for the range And more in talked GSMP what think the plan, had the end what item like more we filed of about end had particular with Jeremy, being I for we

were run not we as so had rate, but filed. our we as And above high

range. within So firmly plan we're that capital

there. And could. hydrogen, And the Northeast in hydrogen how we share Got Mid-Atlantic should it. following opportunity blending, helpful across What fleet, evaluation there? the electrification pegs you local if behind the I can regional latest hydrogen up the think messaging renewable overall. about with What's there? then hub progress industry, very nuclear That's gas

Yes.

hub One X we of proud Jerry, we're we -- happy was MACT the was of first all, Northeast hub So in by and selected and part the really II the MACT being on and the area X the that of this of second was DOE participated II. applications. Hub was that The the solution.

going for development opportunities standpoint state. an region. with from I it's of And growth to say think provide in lot economic the us that a long-term the I

South Jersey. have we'll real in an think I to opportunity somewhere electrolyzer a place

and well to South opportunity the standpoint. users end exists area, an have make storage refinery in from we'll the river for in pipelines think hydrogen Jersey that that both some I in that of as Jersey use as some in South that across exist some and Southern are Delaware in Pennsylvania

That's economic from standpoint. generic the

and top the might see -- play will the credits pancaking as how what nuclear and from interact think the not. going the you PTC the what PTC to of IRA or here on both is with when and come that so be rules our -- think hydrogen determined out we of I really

any we'll don't that. into our So plan. that have baked look We of at

economic key away. for upside I have going that's state hydrogen for then us that and at look will on create of growth the commodity achieve I we our the for we'll It's anything state, also we'll that of see us. front, you We'll that depressed down within of so play to as expectation specifically in enterprise. the tell take this. being some have think you we to it help what part no an risk any role that's part they

clear on equity. very That's have been And no guys it. think helpful. I you Got pretty

refrain So I part. that will fully from

like, I it could say you if again, Jeremy.

in and at the heard CapEx mean, I of filing it of you any later so, just, how And CapEx of be expected December, come EE updated kind But some if on the a we of kind last loud -- to we clarity incremental we does would of how you're items. through? will match just update I updates be No, clear. 'XX guess, as in kind the that on December, get year's there. then and comes items different update? thinking up through with about some And getting

Yes.

so a forward going 'XX, then on January Jeremy, in give are CapEx we you more a partial we through will capital roll update standpoint. So from and you give to

kind run the bit that's have GSMP will of of December little the for be a we update will of the rhythm file, for December EE filings that beginning the in So and which the be about BPU. the rate that to talked we

there'll been is than the expect it would details not filing we from that any triennial, bit the that the indicating be from seen past I the if you there. final that, assessing rate in have run will more to product give order at from standpoint. personally indication everyone what you still our more I to. that We're more it. have That -- a seen we've a team, look said, BPU has couldn't so is us for looked came even opportunity the wanted at out But if who from be that you I little

the of Julien question Bank next America. Our with of line Dumoulin-Smith from is

so talked just coming little a you call the so efficiency, a to this together trying proposal. have guys case the different you've then here, and up lot And have December you right? bit. it energy about GSMP, the tie together, January, moving of Look, rate you pieces got bring you got

You got the PJM transmission.

directly, in well. -- being January presumably. of CAGR? your you that run just load low your rate in about more this I you do You December, remarks growth the new And PJM to about on comment as I comments, today think said maybe again that to specifically how ask want from just you it being said end that? again, base rate December think update

It out fit of will, no How here? to we what you elevated lot like just rate. that of rate of the missing a X%. positives, here into plus equity, Jeremy, a rate about clearly do X% end does pieces you low others, amongst base a And that seeing base are in outlook? seeing new commented about rate. January if run How seems CAGR to X% run the higher culmination, You think

I to this trying tie guess... I'm can. Just together, if I

just give too, I at it at this, in said to is that low I to going a some I say earlier, not were -- if my crack if of I definitely end. it want I to we reinforce did but mean apologize was -- I that Dan said I'm the not intention.

said the We've So range. we're that. within

that And lot I momentum but nothing would firmed yet. here, agree with up of positive there's a is you

that we information more I where GSMP in do the for when X we're we items mentioned, to then you give that? why are. in December And the Dan, that's January. add that get so we will we'll want to And you some anything and But you give later

think I today. an Joe. to says with update There not respect No, those numbers that was

numbers have today. We those reaffirmed

a range. do step we forward, it be continues to has As and it

bit is million be the run that BPU going And through gotten rate was some by a was the I $XXX indication lift from could a there frankly, GSMP of much in We've not as so higher gotten was that EE that spend as indication PJM filed for. we've range. transmission GSMP little could triennial see some a incremental but some

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clarifications there. of couple A it. Got

come the forward If needs to you you through be it low -- don't the would 'XX? of X% to like the mind, I X% least -- was at saying X.X%, end up earlier, seems rolling to 'XX plan

bring linearity to 'XX think of more the going will, a even if do within up then how 'XX, not of of again terms just mind? And you in off if term about don't if earnings, off we're specifically you baseline, but you that, this maybe

is Yes. Look, still to X.X%, said X% Julien, that and we we are. where

for look me The So do as will just indication at the give what we if X.X% step number, filing like. made. been EE has these not X% forward, from talking you're start we're we we're is that the trying to -- do to things up to to what as

And with from to that answer final we don't transmission. PJM that have respect

extend will years bit. do a So and the are up These kind move forward, our We I little will come think base that. capital need that we some will up those the as we forecast. follow. do things of that we'll of And step to as incremental

move little into about Think we'll come 'XX of to exactly update step plan. you in December that ought longer-term it of side a you it, more think on as then We'll we our affirming and we I as numbers overall the So give other a we're how those color finalization our bit presented forward.

line from Sullivan come Wolfe Our next Research. . is of with question the Michael

Sorry call year-end it the just to up but belabor, to on tie update.

be CAGR that will fair XXXX. So to that say right? earnings Is XXXX to the

will frame. be we we at Exactly. in remarks, prepared the That time. that January That's be update in said that giving and will the time what

consistent how nuclear the on And X Analyst with else it of side we of PTC the assume kind Okay. level at nuclear being... with things, Day anyone the out should you laid

Yes.

credit side things. Okay. last, on of just the And then

potential or the So I think any I saw consolidated about of power there on your side the view Moody's week, they might earlier outlook action thinking how and and to And took be metrics thresholds? this resource favorable things. a

recognizing of on aware Moody's on the by happy, going tell parent we're you, and explain in will team the some side. department I Dan that Nothing very power his letter good was and on -- Yes. appreciate we it I level. out. to treasury went what's were you work But our getting I And

front. that on thanks So

Yes.

you right? that made nuclear what that think been floor you're referencing. PTC Michael, provide what does is about I it they sense, think did, exact If and what that now, has

to within intend did. nothing talk of numbers But certainly, is that about . to continue supportive our And exactly that. stabilization Moody's and beyond that what so we do

Next question from comes Carly line Goldman the Sachs. of Davenport with

X just questions of could. quick on Most I of -- just answered, might nuclear, but have been if sort housekeeping

in been terms budget updates then on a and is flag in just, to how First on And from nuclear far timing we of anything one, so might your view a there outage when that's in the get clarity any X of terms refueling of SAM-X there there? perspective? terms are is both progressing PTC the second

Yes. normal perform have continues a nothing to we business than there, work other consistent with there there's to the take Look, plan. and one. average our discuss team last that excellent The I'll

So to to team just for give a great down opportunity kudos me the there.

piece. give will the that PTC and you that, for you thank So

is not excellent presume now doing treasury when. also they're but I to it's work down Yes. not exactly reporting there,

So that, we but continue heard than but we've timing reinforce don't to yet. is later, better back anything on have sooner other any particular than color not to

line of comes Morningstar. question from Travis with Next the Miller

on CapEx. that -- quick. just could touch -- Real characterize that existing if go projects? clarify I is projects wonder on quick forward? Is That as new real to you $XXX that you inflation that pull could million --

out a really think things as we'll that, little update of we we of fulsome Travis, work a that is are couple has it of work the team there us, than front have I what of of Think job the with knocking great as that the Yes. doing in a is is, go that anticipated, done been and some forward. quicker bit more just up getting a follow and

Okay.

not at of So that XXXX out a relationship pull all there? or would

right But see No. what Well, able way. into XXXX to pulled that things on you'll I it you about think as forward. happens other back be coming as they're would argue update, give that back if able can an you some are go we where bit to And may see a you little ahead It's 'XX. be could they into they fluid because 'XX. now, get

it wouldn't I a 'XX. in about think reduction as So

up think we as getting work that little true early, bit done to about a I and more continue it we'll go as forward. just

indicate a interest of and just energy front, expand the And also there add the we've there. comments lot able the on there's is I thing efficiency only to I made would been continue to

support the the we the with So all from consistent and I on triennial what get indicated BPU.

you're know terms you're but thing that New Okay. offshore... political out New not high-level in on stuff Any hearing Perfect. I a obviously, anymore, of coming hearing regulatory a Jersey's you're in That's York. in question discussions, then of wind. lot halls, in anything helpful. And offshore involved

just we're at with look, reading. just that made the -- reading happy And this you're we No, decision all again, what we're Yes. point.

the of Crowdell with Anthony next Our from Mizuho. question is line

base then I rate CapEx that XXXX little guidance, Just on get apologies earnings we CAGR. on did housekeeping in then correctly? hear Is a CAGR, on December, we December, guidance growth rate in cadence -- And call, a filing XQ earnings update that an get update. the

tied an expect. or we day, rhythm we That's I but the rhythm expect. yes, into don't hour be to a want that's the about

just then an And Great. easy question.

the you guys rate June due, also in rate There's There's maturity? of interest was the You it plans been talked that about of due, X.X%. your an taken the in are earlier at that's I X that guess, a financing, or attractive like included that. I in guess, maybe care Has hedges bond interest next call. what for hedges year, -- rate have

Yes.

that including it. were important comparable forward. that and take pretty single spreads gave capture of to Anthony, are. every didn't step rates that We presume update, element where we as is the dollar we'll November, And we that last So out we I think

going the what where are But currently the a market think to delta within is we thought from and range. I it we was be perspective between

some it, And we've a So them, getting refinancing, done nice and take flip like of think as of our see that rates they're will caution we we our higher of we out. I a a will but job ahead lot forecast.

I strong utility And PEG I'm if Power sheet, your company. stronger read-through jump I or sheet maybe potential up the up PEG balance believe -- last, any question could on the to PEG at in interest moving I balance BaaX. to changes I BaaX parent any outlook then Power, Great. Power parent guess, the Mike's there, the about sorry, to change, in earlier at Moody's. mean, thoughts

look it, they positive a outlook if the at there. power. mean just take you I didn't rating move Yes. It's on a

an business if you be effect a just on think at strategic done parent. set look ripple be position overall of forward. we're better that you about I I as from But think reflective think lesser balance, of I think and we've so going what the overall would decisions mix in PTCs And would the

turn time for to all LaRossa Mr. we for questions the have floor back That the is I'll comments. today. closing

Yes. very work to with the we happy we've you Listen, continued our to produce sorry, thank interest, team me for that -- and to had so here had certainty. much Thank I'm stability try want you The all created continues much, that really the but interest. your we No. move just on. I and amazes sorry,

we a some amount them here. And One information we just completed. was We amazing today, execute that work internal I'll awards just that put on. have come the highlight companies in things of out and earlier to best be things recognized to to best of employers continued it's work the out different and and few plan monetization system for. of We've gas that continue this

Directors. We bills customers again and of our October we for lowered Board X, gas our effective refreshed

sometimes seem lot just So and struggle to of a we things that people time be time again. executing with,

a a we our on, work from but only So you that the thanks that that said company in others Hopefully, team. on voices, can executing to not our big count you we're we're would. and hear we

healthy said and Halloween, all but Enjoy And the for safe I'll for just leave but to also Take I just with this. day. hope families. yourselves have your Halloween Anthony that's it, care. happy a not everyone. you and

Ladies and gentlemen, today's this concludes teleconference.

time. disconnect this your you may your lines You at for Thank participation.