Public Service Enterprise Group Earnings Call Insights: Dividend Policy and Clause Recovery Mechanisms
Public Service Enterprise Group Inc (NYSE:PEG) recently reported its fourth quarter earnings and discussed the following topics in its earnings conference call.
Travis Miller – Morningstar: I wanted to get more into dividend policy, where you think the dividend is going, when you think given the CapEx spend and such do think you could grow the dividend in line with earnings, you think about in line with corporate earnings and in line with utility earnings give us a sense growth you give?
Ralph Izzo – Chairman, President and CEO: What we’ve consistently said to folks is we don’t have a dividend growth rate target. We don’t have a payout ratio target. Both those items we consider as well as the relative cash being generated by the businesses and the cash requirement to the businesses. So, we summarize it by saying that we do believe we have an opportunity for modest growth in the dividend consistent with what we see right now in terms of the cash generation and needs of the business. But we don’t get miracle or quantitative amount on it and we have grown it 9 or last 10 years it’s been about a compound annual growth rate of 3%. We paid it annually for over 100 years, so we try to give you comfort about it without giving you a specific here is the growth rate.
Travis Miller – Morningstar: Then second question on the BGS auction particularly looking at that incremental $53 a megawatt hour you have signed all those extra elements. How did that correspond with your expectations and obviously the capacity revenues were set, but if you take out that, how did that incremental part line up with your expectations?