Izzo Tells Shareholders that PSEG is Well Positioned for Earnings Growth and Expansion
Says climate change represents an opportunity to grow the business through investments in energy efficiency, renewables and clean central station power
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.
“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.
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 www.pseg.com
This news content was configured by WebWire editorial staff. Linking is permitted.
News Release Distribution and Press Release Distribution Services Provided by WebWire.