Izzo Tells Shareholders that PSEG is Well Positioned for Earnings Growth and Expansion
April 15 2008 - 1:00PM
PR Newswire (US)
Says climate change represents an opportunity to grow the business
through investments in energy efficiency, renewables and clean
central station power NEWARK, N.J., April 15 /PRNewswire-FirstCall/
-- Ralph Izzo, PSEG president, chairman and CEO today told
shareholders gathered for the company's annual meeting that PSEG is
"well positioned for earnings growth and expansion." He said the
company expects the combination of earnings growth and dividends to
produce annual shareholder returns in the range of 10 to 13 percent
through 2011. Izzo noted that PSEG completed 2007 with operating
earnings well above what the company had forecasted a year earlier
and had improved its business profile for growth with manageable
risk. He said the company's two main earnings drivers were PSEG
Power, its large domestic electric supply business and PSE&G,
its New Jersey electric and gas utility. Izzo also outlined
opportunities for growth in the areas of climate change, critical
infrastructure upgrades and the need for new energy supply. Climate
change "Leadership on the issue of climate change is important for
our business as well as our society. While it is a challenge, it
also represents opportunity to grow with investments in energy
efficiency, renewable energy and clean central station power," Izzo
told shareholders. He said he was encouraged by the passage of
legislation in New Jersey that recognizes the role that utilities
can play in promoting a sustainable energy future. He highlighted
the approval the company received last week from state regulators
to help expedite investment in solar energy and noted that PSEG
recently put forward proposals to develop offshore wind energy and
expand utility investments in energy efficiency. Izzo also talked
about the importance of ensuring "universal access to energy
efficiency and renewable energy," so that every neighborhood can
enjoy the benefits. Infrastructure upgrades Aging energy
infrastructure must be upgraded to ensure reliable electric
delivery in the area PSE&G serves. PSE&G is supporting the
construction of several new 500-kv transmission lines and expects
to invest $1.6 billion in transmission lines over the next 5 to 8
years to improve the long-term reliability of the electric system.
Need for new energy supply. PSEG's near-term growth plans involve
proposing 300 to 400 megawatts of new peaking capacity in New
Jersey, in addition to other peaking units in Connecticut. The
company is also looking at the viability of building a new nuclear
plant at the site of its Hope Creek and Salem units. This is a more
long-term proposition, Izzo noted, given the years of permit and
regulatory preparation that would be needed before a decision is
made to proceed with a formal application. Nuclear energy is free
of carbon emissions. Izzo called 2007 a defining year for PSEG,
crediting the company's focus on operational excellence, financial
strength and disciplined investment. "We are a company that cares
deeply about community and the environment, one that is
increasingly looked to for leadership on issues like climate change
and workforce development. We rely on the continued dedication of
our employees, and believe that our platform provides clear
visibility for earnings growth and opportunities for expansion."
"PSEG is ready, able and eager to make the investments and create
the jobs associated with a safe, reliable, clean and sustainable
energy future," he said. The shareholders meeting was held at the
New Jersey Performing Arts Center in Newark, NJ. Complete text of
remarks can be found in the media relations section of
http://www.pseg.com/ For a complete text of remarks visit
http://www.pseg.com/. FORWARD-LOOKING STATEMENT Readers are
cautioned that statements contained in this press release about our
and our subsidiaries' future performance, including future
revenues, earnings, strategies, prospects and all other statements
that are not purely historical, are forward-looking statements for
purposes of the safe harbor provisions under The Private Securities
Litigation Reform Act of 1995. Although we believe that our
expectations are based on reasonable assumptions, we can give no
assurance they will be achieved. The results or events predicted in
these statements may differ materially from actual results or
events. Factors which could cause results or events to differ from
current expectations include, but are not limited to: * Adverse
Changes in energy industry, policies and regulation, including
market rules that may adversely affect our operating results. * Any
inability of our energy transmission and distribution businesses to
obtain adequate and timely rate relief and/or regulatory approvals
from federal and/or state regulators. * Changes in federal and/or
state environmental regulations that could increase our costs or
limit operations of our generating units. * Changes in nuclear
regulation and/or developments in the nuclear power industry
generally, that could limit operations of our nuclear generating
units. * Actions or activities at one of our nuclear units that
might adversely affect our ability to continue to operate that unit
or other units at the same site. * Any inability to balance our
energy obligations, available supply and trading risks. * Any
deterioration in our credit quality. * Any inability to realize
anticipated tax benefits or retain tax credits. * Increases in the
cost of or interruption in the supply of fuel and other commodities
necessary to the operation of our generating units. * Delays or
cost escalations in our construction and development activities. *
Adverse capital market performance of our decommissioning and
defined benefit plan trust funds. * Changes in technology and/or
increased customer conservation. For further information, please
refer to our Annual Report on Form 10-K, including item 1A. Risk
Factors, and subsequent reports on Form 10-Q and Form 8-K filed
with the Securities and Exchange Commission. These documents
address in further detail our business, industry issues and other
factors that could cause actual results to differ materially from
those indicated in this release. In addition, any forward-looking
statements included herein represent our estimates only as of today
and should not be relied upon as representing our estimates as of
any subsequent date. While we may elect to update forward-looking
statements from time to time, we specifically disclaim any
obligation to do so, even if our estimates change, unless otherwise
required by applicable securities laws. DATASOURCE: Public Service
Enterprise Group (PSEG) CONTACT: Jenn Kramer, +1-973-430-7734, for
PSEG Web site: http://www.pseg.com/
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