PSEG's Q4 2024 Earnings Call: Key Contradictions in Nuclear Strategy and Market Outlook

These are the key contradictions discussed in Public Service Enterprise Group's latest 2024Q4 earnings call, specifically including: PJM Market Outlook and Reliance on Nuclear Projects, Customer Interest in Large Load and Data Centers, Artificial Island Deal Status and Focus, Nuclear Fleet Opportunities, Nuclear PTC Guidance and State Actions, and PJM Market Uncertainties:



Strong Financial Performance and Earnings Growth:
- Public Service Enterprise Group Incorporated (PSEG) reported net income of $0.57 per share for the fourth quarter of 2024 and $3.54 per share for the full year.
- Non-GAAP operating earnings were $0.84 per share for the fourth quarter and $3.68 per share for the full year, marking the 20th consecutive year meeting or exceeding management's guidance.
- This growth was supported by a favorable regulatory outcome and effective execution of strategic objectives.

Increased Infrastructure Investments and Utility Margin Improvement:
- PSEG planned to invest $4 billion across enterprise in 2025, up from $3.6 billion in 2024, driven by regulated investments.
- The new investment plan includes the Advanced Metering Infrastructure program and the CEF-EE II energy efficiency program.
- These investments aim to enhance infrastructure reliability and meet growing customer demand.

Large Load and Data Center Demand Surge:
- PSEG's interest in large load and data center projects in New Jersey grew from 400 MW in 2023 to 4,700 MW in 2024.
- This increase aligns with PSEG's robust utility transmission infrastructure and the state's marketing efforts.
- The rise in interest is attributed to the business-friendly environment and potential for economic development in New Jersey.

Earnings Growth Outlook and Nuclear Revenue Opportunities:
- PSEG initiated its non-GAAP operating earnings guidance for 2025 at $3.94 to $4.06 per share, up 9% from the 2024 midpoint.
- The company is pursuing incremental revenue opportunities at PSEG Nuclear, which could enhance its long-term growth CAGR.
- The pursuit of these opportunities is aimed at improving economic development and attracting AI hubs to New Jersey.