Public Service Enterprise Group Inc. (NYSE:PEG) Q4 2019 Earnings Conference Call - Final Transcript

Feb 26, 2020 • 11:00 am ET


Public Service Enterprise Group Inc. (NYSE:PEG) Q4 2019 Earnings Conference Call - Final Transcript


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Ladies and gentlemen, thank you for standing by. My name is Tiffany, and I am your event operator today. I would like to welcome everyone to today's conference, Public Service Enterprise Group Fourth Quarter and Full Year 2019 Earnings Conference Call and Webcast. [Operator Instructions] As a reminder, this conference is being recorded today, Wednesday, February 26, 2020, and will be available for telephone replay beginning at 1:00 p.m. Eastern Time today until 11:30 p.m. Eastern Time on March 5, 2020. It will also be available as an audio webcast on PSEG's corporate website at

I would now like to turn the conference over to Carlotta Chan. Please go ahead.

Carlotta N. Chan

Thank you, Tiffany. Good morning. PSEG released its fourth quarter and full year 2019 earnings results earlier today. The earnings release attachments and slides detailing results by company are posted on the IR website, and our 10-K will be filed shortly. The earnings release and other matters we will discuss on today's call contain forward-looking statements and estimates that are subject to various risks and uncertainties. We also discuss non-GAAP operating earnings and non-GAAP adjusted EBITDA, which differ from net income as reported in accordance with generally accepted accounting principles in the United States. Reconciliations of our non-GAAP financial measures and a disclaimer regarding forward-looking statements are posted on our IR website and included in today's earnings materials.

I will now turn the call over to Ralph Izzo, Chairman, President and Chief Executive Officer of Public Service Enterprise Group. Joining Ralph on today's call is Dan Cregg, Executive Vice President and Chief Financial Officer. At the conclusion of their remarks, there will be time for your questions.

Ralph Izzo

Thank you, Carlotta, and good morning, everyone, and thanks for joining us on the call today. PSEG reported non-GAAP operating earnings for the fourth quarter of $0.64 per share. That's an increase of 14% versus non-GAAP results of $0.56 per share in the fourth quarter of 2018. Non-GAAP operating earnings for the full year were $3.28 per share, which are 5% higher than 2018's non-GAAP results of $3.12 per share. We achieved solid operating and financial results in 2019, which marked the 15th consecutive year that PSEG delivered results within or above our original guidance earnings guidance. Our GAAP results for 2019 of $3.33 per share compared to net income of $2.83 per share for 2018 and reflected higher earnings due to several factors. These included the conclusion of PSE&G's 2018 distribution rate review; a partial year of Zero Emission Certificates, or ZECs, as I'll refer to them later on; mark-to-market gains and nuclear decommissioning trust fund gains compared to losses in 2018; and higher pension credits from benefit plan changes in 2019. Net income for 2019 also included a loss recorded on the sale of PSEG Power's ownership interest in the coal-fired Keystone and Conemaugh units in Pennsylvania that closed in the third quarter. Details on the results for the quarter and the full year can be found on slides six and