Public Service Enterprise Group Inc.
) or PSEG has provided its capital investment projection for the
coming five years. The company plans to invest around $12
billion, including $10 billion which is expected to be allocated
for its unit Public Service Electric and Gas Company
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Public Service Enterprise Group intends to spend the funds
primarily to upgrade transmission facility, which was authorized
by the PJM Interconnection L.L.C.
Of the projected investment of $10 billion, PSE&G plans to
spend $6.8 billion for transmission projects. Currently,
PSE&G is in the middle of five vital ventures. Post
completion, the company can add 345-kilovolt line by Jun 2018.
These initiatives will enable the company to provide
uninterrupted services to its customers while managing estimated
We believe that a stable cash position and capacity to improve
cash inflow through operating activities support Public Service
Enterprise Group's steady infrastructure upgrade and expansion
ventures. As of Dec 31, 2013, the company's cash balance was
around $0.5 billion, up 31.6% from $0.38 billion as of Dec 31,
2012. For 2013, cash flow from operating activities increased
13.3% to $3.16 billion from the prior-year comparable figure.
In addition to investment in transmission ventures, Public
Service Enterprise Group is also expanding its scale of power
generation. The company plans to raise output capacity by 130
megawatts (MW) at its nuclear facilities and by 150 MW at its
combined cycle power plants. These will help the company to meet
increased customer demand.
Public Service Enterprise Group is expected to invest more under
its Energy Strong Program to solidify its delivery assets. This
program is subject to the New Jersey Board of Public Utilities'
approval. If approved, the program will enable the company to
guard its substations which were affected by water as a result of
Hurricane Irene in 2011 and Superstorm Sandy in 2012.
Apart from announcing its five-year capital spending program,
Public Service Enterprise Group also reported its 2014 earnings
estimates. The company reiterated earnings guidance in the range
of $2.55 to $2.75 per share. As per the Zacks Consensus Estimate,
the company's earnings in 2014 were $2.70 per share. The
company's regulated business is expected to provide 55% of the
annual bottom line. Public Service Enterprise Group's Long Island
operations will contribute earnings of 3 cents in 2014.
Public Service Enterprise Group currently has a Zacks Rank #1
(Strong Buy). Some other stocks worth considering in the utility
OGE Energy Corp.
CMS Energy Corporation
). While Exelon holds a Zacks Rank #1 (Strong Buy), OGE Energy
and CMS Energy carry a Zacks Rank #2 (Buy).