PSEG announces plans to invest $15 billion in energy infrastructure
Public Service Enterprise Group (PSEG) announced this week that it plans to invest approximately $15 billion over the next five years in its energy infrastructure and reaffirmed its 2017 earnings guidance of $2.80 to $3.00 per share.
Ralph Izzo, PSEG chairman, president and CEO, told investors at the company’s Annual Investor Conference in New York that PSEG achieved double-digit growth in rate base and earnings in 2016. In February, the company announced a 4.9 percent increase in the dividend.
PSEG expects the utility to make up approximately two-thirds of its non-GAAP operating earnings in 2017. The company predicts compound annual growth in its rate base of seven percent increase over the next five years with a baseline $12.3 billion infrastructure program and up to nine percent with expansions of the program.
“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,” Izzo said.
PSEG Power plans to use funds generated by its plants, including three combined-cycle gas plants in the PJM and New England markets, to fund expanded investment.
“We continue to work toward a future with universal access to more reliable, resilient, cleaner and affordable energy,” Izzo said. “By delivering on our strategic investment program, we are building an energy company that provides strong growth for our shareholders and a sustainable energy future for our customers.”
