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Project(s): View 4 related projects in PECWeb
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Released February 27, 2017 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Public Service Enterprise Group (NYSE:PEG) (PSEG) (Newark, New Jersey) took a hit in earnings in 2016 as several major units closed and both prices and demand tumbled. Nonetheless, executives staked out a strong capital-expenditure plan for the coming years, including the expected startup of three natural gas-fired, combined-cycle (NGCC) power projects. Industrial Info is tracking $20.77 billion in active projects involving PSEG.
PSEG currently expects capital expenditures to total about $10.2 billion from 2017 through 2019. The company has two subsidiaries: Public Service Electric & Gas (PSE&G), a regulated electric and gas utility that serves 4 million electric and gas customers in New Jersey; and PSEG Power, a competitive power generation business, which operates in three regional markets: New England, New York and the PJM (Pennsylvania-New Jersey-Maryland) interconnection. About 77% of the capital expenditures are attributed to PSE&G, and the remainder are attributed to PSEG Power.
PSEG's net income for 2016 was reported to be $887 million, a 47% drop from that of 2015. PSE&G spent $2.8 billion in 2016 to upgrade and expand its transmission and distribution system, which, along with normalized weather conditions, proved a major benefit in the fourth quarter.
However, PSEG Power reported a net loss due to a decline in energy prices, as well as the early retirement of coal-gas units at the Hudson and Mercer generating stations cost PSEG roughly $555 million pre-tax. The subsidiary also was affected by a refueling outage at the Hope Creek Station, major maintenance on its gas-fired CCGTs, and lower demand. (In comparison, net income for 2015 benefited from insurance proceeds for the recovery of storm costs.)
Industrial Info is tracking PSEG's proposed, $14 billion Unit 2 addition to Hope Creek Power Station in Hancocks Bridge, New Jersey, for which the company is constructing a 1,600-megawatt (MW) Advanced Boiling Water Reactor (ABWR), Advanced Passive 1000 (AP1000), US Evolutionary Power Reactor (US EPR), and a US Advanced Pressurized Water Reactor (US APWR) with Steam Turbine Generator Set. The project is in its site study phase, and has faced numerous delays. For more information, including current schedules and contact information, see Industrial Info's project report.
PSEG executives also anticipate stronger output in 2018 and 2019, pointing to the expected commercial start-up of three NGCC power plants: Keys Energy Center in Maryland and an addition to the Sewaren Generating Station in New Jersey in mid-2018, and the commercial start-up of a plant in Bridgeport Harbor, Connecticut, in mid-2019.
Industrial Info is keeping tabs on the $850 million Keys Energy Center in Brandywine, Maryland, the $650 million Unit 7 addition at Sewaren Generating Station in Sewaren, New Jersey and the $550 million Bridgeport Harbor Power Station in Bridgeport, Connecticut. The projects are expected to generate 755 MW, 540 MW and 485 MW, respectively. Keys Energy Center will use generators supplied by Siemens AG, while the other two will use generators from General Electric (NYSE:GE). For more information, see Industrial Info's project reports on the Keys Energy, Sewaren and Bridgeport facilities.
"We continue to pursue opportunities to enhance earnings and reduce financial risk. Actions to transition our business mix in response to changing market conditions have supported earnings," said Ralph Izzo, the chairman and chief executive officer of PSEG, in a press release. "Our investment program, coupled with the impact from retirement of Hudson and Mercer, is expected to improve the resiliency of our infrastructure and the economic efficiency of our generating fleet."
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
PSEG currently expects capital expenditures to total about $10.2 billion from 2017 through 2019. The company has two subsidiaries: Public Service Electric & Gas (PSE&G), a regulated electric and gas utility that serves 4 million electric and gas customers in New Jersey; and PSEG Power, a competitive power generation business, which operates in three regional markets: New England, New York and the PJM (Pennsylvania-New Jersey-Maryland) interconnection. About 77% of the capital expenditures are attributed to PSE&G, and the remainder are attributed to PSEG Power.
PSEG's net income for 2016 was reported to be $887 million, a 47% drop from that of 2015. PSE&G spent $2.8 billion in 2016 to upgrade and expand its transmission and distribution system, which, along with normalized weather conditions, proved a major benefit in the fourth quarter.
However, PSEG Power reported a net loss due to a decline in energy prices, as well as the early retirement of coal-gas units at the Hudson and Mercer generating stations cost PSEG roughly $555 million pre-tax. The subsidiary also was affected by a refueling outage at the Hope Creek Station, major maintenance on its gas-fired CCGTs, and lower demand. (In comparison, net income for 2015 benefited from insurance proceeds for the recovery of storm costs.)
Industrial Info is tracking PSEG's proposed, $14 billion Unit 2 addition to Hope Creek Power Station in Hancocks Bridge, New Jersey, for which the company is constructing a 1,600-megawatt (MW) Advanced Boiling Water Reactor (ABWR), Advanced Passive 1000 (AP1000), US Evolutionary Power Reactor (US EPR), and a US Advanced Pressurized Water Reactor (US APWR) with Steam Turbine Generator Set. The project is in its site study phase, and has faced numerous delays. For more information, including current schedules and contact information, see Industrial Info's project report.
PSEG executives also anticipate stronger output in 2018 and 2019, pointing to the expected commercial start-up of three NGCC power plants: Keys Energy Center in Maryland and an addition to the Sewaren Generating Station in New Jersey in mid-2018, and the commercial start-up of a plant in Bridgeport Harbor, Connecticut, in mid-2019.
Industrial Info is keeping tabs on the $850 million Keys Energy Center in Brandywine, Maryland, the $650 million Unit 7 addition at Sewaren Generating Station in Sewaren, New Jersey and the $550 million Bridgeport Harbor Power Station in Bridgeport, Connecticut. The projects are expected to generate 755 MW, 540 MW and 485 MW, respectively. Keys Energy Center will use generators supplied by Siemens AG, while the other two will use generators from General Electric (NYSE:GE). For more information, see Industrial Info's project reports on the Keys Energy, Sewaren and Bridgeport facilities.
"We continue to pursue opportunities to enhance earnings and reduce financial risk. Actions to transition our business mix in response to changing market conditions have supported earnings," said Ralph Izzo, the chairman and chief executive officer of PSEG, in a press release. "Our investment program, coupled with the impact from retirement of Hudson and Mercer, is expected to improve the resiliency of our infrastructure and the economic efficiency of our generating fleet."
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
