Release Date: April 30, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q & A Highlights
Q: Can you comment on the timing around potential announcements for direct power sales opportunities with your nuclear facilities, and how should we think about when that could contribute to EPS?
A: Ralph A. LaRossa, Chair, President & CEO of PSEG, emphasized the importance of aligning with state policy, particularly New Jersey's efforts to attract AI jobs and IT infrastructure. He suggested that the timing of such initiatives would depend on various factors, including actions by hyperscale data centers and state policies. LaRossa advised following state announcements for updates.
Q: How do you see the transmission system changing with the introduction of data centers and their impact on regional transmission needs?
A: Ralph A. LaRossa highlighted the importance of monitoring the PJM RTEP process, which evaluates the transmission grid topology. He mentioned that changes in generation sources and new data center demands could necessitate modifications to the grid, emphasizing the role of the RTEP process in addressing these needs.
Q: Are there any updates on the nuclear PTC guidance from the IRS, and what implications might this have on your financial plan?
A: Daniel J. Cregg, EVP & CFO, noted the ongoing uncertainty regarding IRS guidance on the nuclear PTC, particularly the definition of gross receipts. He mentioned that PSEG is preparing for various outcomes and is positioning itself to handle the uncertainty effectively, despite the lack of specific guidance from the treasury.
Q: Is behind-the-meter a scalable opportunity for data centers in New Jersey, and how might grid dependence be addressed?
A: Ralph A. LaRossa responded that behind-the-meter solutions would likely be implemented at scale if pursued. He reassured that grid dependence issues are being addressed on multiple fronts, including federal and state levels, ensuring minimal burden on customers.
Q: Could you discuss the scope of work being done during the Hope Creek outage and its impact on future operations?
A: Ralph A. LaRossa explained that the current outage at Hope Creek involves minor optimizations in preparation for a future fuel cycle shift. These include a generator rewind and upgrades to the cooling tower, which are part of broader efforts to enhance the plant's efficiency and readiness for upcoming operational changes.
Q: How does PSEG view the potential for hydrogen production at its nuclear facilities, and what are the regulatory or policy frameworks that might influence these opportunities?
A: Daniel J. Cregg mentioned that any upgrades at the nuclear facilities would align with additionality and hourly matching requirements for hydrogen production, suggesting a strong regulatory framework supports such initiatives. He emphasized PSEG's readiness to explore these opportunities as they align with broader state and federal energy policies.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
