By Suzanne Herel

FirstEnergy reported third-quarter operating earnings of $0.98/share, compared with $0.89/share in the same period of 2014, reflecting higher distribution sales and the impact of previously resolved rate cases, the company said in an earnings call.

Overall, it reported earnings of $395 million ($0.94/share) for the quarter, compared with $333 million ($0.79/share) last year.

The Akron, Ohio, company also raised and narrowed its guidance for the year’s operating earnings to $2.67 to $2.75/share from its previous prediction of $2.40 to $2.70.

“Our strong third-quarter results reflect a solid performance across all three of our businesses — Regulated Distribution, Regulated Transmission and Competitive Energy Services,” CEO Charles Jones said.

Jones said the company had made “tremendous progress” on three key initiatives: its cash-flow improvement project, PJM capacity market reforms and the Ohio Electric Security Plan, under which the company is seeking power purchase agreements.

He said the cash-flow improvement project, which seeks savings ideas from across the company, should generate $240 million in improvements by 2017.

Jones said he was “cautiously optimistic” about the capacity market reforms, noting that the clearing prices were in line with expectations and come closer to reflecting the true operating costs of generation.

Regarding the Electric Security Plan, he said, “We currently expect a decision by early 2016.”

Operating earnings in the Regulated Distribution business increased due to hot weather and approved rate cases. Distribution deliveries were up nearly 3% overall compared with the same time last year, also driven by hot weather along with an increase in commercial sales.

Operating earnings also increased year-over-year for the Regulated Transmission business, in part from revenues related to FirstEnergy’s Energizing the Future transmission upgrade program.

Higher capacity revenues, lower purchased power costs and lower transmission charges contributed to increased operating earnings in the Competitive Energy Services segment.

By William Opalka

Eversource Energy earned $235.9 million ($0.74/share) in the third quarter, about the same as its $234.6 million ($0.74/share) for the same period a year ago.

Results included after-tax integration costs of $1.7 million in 2015 and $3 million in 2014 from the combination of Northeast Utilities and NSTAR.

In the first nine months of 2015, Eversource earned $696.7 million ($2.19/share), compared with $597.9 million ($1.89/share) in the first nine months of 2014.

“We’re having a very successful year exceeding our financial and operational targets and advancing key initiatives to provide our region with long-term sources of low-cost, clean energy,” Eversource CEO Thomas J. May said in a statement.

The company also narrowed its 2015 earnings guidance to $2.80 to $2.85/share, which May said is “very consistent with our projected long-term EPS growth rate of 6 to 8%.”

Eversource’s electric distribution and generation segment earned $167.7 million in the third quarter, compared with $153.4 million in the third quarter of 2014.

Its transmission segment earned $78 million in the most recent quarter versus $88.1 million in the third quarter of 2014.

By Suzanne Herel

PPL posted third-quarter adjusted earnings of $347 million ($0.51/share) compared with $297 million ($0.44/share) for the same period last year, a 16% increase on a per-share basis.

The company increased its forecast for per-share earnings growth to 6% through 2017, based on higher-than-expected earnings from the company’s regulated operations in the U.K., CEO William Spence said. The forecast range had been 4 to 6%.

Spence also credited the projected earnings growth to more than $3 billion in annual investments in infrastructure in the U.S. and U.K.

The reporting period was the first full quarter since the Allentown, Pa., company spun off its supply division into Talen Energy.

PPL’s reported earnings for the first nine months of the year reflected a loss of $915 million ($1.36/share), primarily due to the spinoff.

Earnings from ongoing operations of PPL’s U.K. regulated segment for the quarter increased $0.01/share over the third quarter of 2014. There, lower income taxes and depreciation expenses were offset by lower utility revenues, the company said.

In PPL’s Kentucky regulated segment, earnings from ongoing operations were up $0.04/share year-over-year, mostly due to higher returns on environmental capital investments and base electricity rates. However, that segment also experienced steeper operation and maintenance expenses.

In its Pennsylvania regulated segment, PPL reported a third-quarter bump of $0.01/share compared with last year in earnings from ongoing operations. The company attributed that to larger transmission and distribution margins, partially offset by a greater depreciation, O&M expenses and income taxes.

By Suzanne Herel

Public Service Enterprise Group’s third-quarter operating earnings benefited from hot weather, increased investment in infrastructure and the continued low cost of natural gas, CEO Ralph Izzo said.

The Newark, N.J., company reported adjusted earnings of $403 million ($0.80/share) compared with $393 million ($0.77/share) last year.

Izzo noted that since the beginning of the year, the company’s five-year capital program has increased by 20% to $15.6 billion.

That boost in spending, he said, should drive “double digit” growth in the rate base through 2019. The company also is adding 1,300 MW of gas-fired combined-cycle capacity to PSEG Power’s generating fleet.

Public Service Electric and Gas reported operating earnings of $222 million ($0.44/share) for the third quarter compared with $200 million ($0.39) last year. The earnings were helped by warmer-than-normal weather, a slight increase in electric demand and revenue recovery on infrastructure-related investment programs. They also reflected an increase in pension expense.

After having retired about 1,800 MW in the second quarter of less efficient capacity that didn’t meet New Jersey’s environmental standards, PSEG Power reported operating earnings for the third quarter of $170 million ($0.33/share) compared with $171 million ($0.34/share) last year.

By Suzanne Herel

Exelon is on track to deliver its best year of earnings since 2012, CEO Christopher Crane told analysts in the company’s third-quarter earnings call.

“At the utilities, we’re set to invest $3.7 billion this year in needed infrastructure and enhancements and grid reliability and resiliency modifications, part of more than a $16 billion investment that’s planned over the next five years,” he said.

The Chicago company reported third-quarter operating earnings of $757 million ($0.83/share) compared with $676 million ($0.78/share) for the same period in 2014.

Exelon credited higher revenue from the company’s generation business, favorable weather in the Commonwealth Edison and PECO territories and lower storm costs for the Baltimore Gas and Electric territory. That was offset in part by higher contracting costs and interest payments on higher outstanding debt.

Crane highlighted three key initiatives for the year: PJM’s new Capacity Performance product; a legislative initiative to impose a customer surcharge to fund Illinois nuclear plants; and its proposed merger with Pepco Holdings Inc.

“For the 2018/2019 auction, we cleared a significant number of megawatts at higher priced zones, and these prices exceeded our own internal expectations,” he said. (See PJM Transition Auction Means Reprieve for Exelon Nukes.)

Regarding the legislation, which Exelon calls the Low Carbon Portfolio Standard, Crane expressed disappointment that more hadn’t been accomplished. However, he said, “The overall outlook for the nuclear fleet has improved as a result of policy and market factors, namely the constructive results of the capacity auction, the positive results from the Illinois Power Agency’s capacity procurement for 2016 and the long-term impact of the Environmental Protection Agency’s new carbon reduction rules.” (See Exelon-Backed Bill Proposes Surcharge to Fund Illinois Nukes.)

The proposed acquisition of PHI last week was revived by the D.C. Public Service Commission, which agreed to reconsider the deal after the companies submitted a proposed settlement reached with Mayor Muriel Bowser’s administration. (See related story, DC PSC Rulings Give Exelon-PHI Merger a Shot in the Arm.)

“The deal remains an important strategic element to the future of Exelon, allowing us to shift our business mix to a more regulated and durable earnings stream,” Crane said.

By Tom Kleckner

Xcel Energy last week reported third-quarter earnings of $426 million, a 15% increase over 2014’s $369 million. Its earnings per share of 84 cents was 4 cents more than analyst projections.

Xcel, which operates in eight states, credited the results to several recent rate increases, its “ongoing, successful” regulatory initiatives and “continued cost management efforts.” The Minneapolis-based company said it resolved major regulatory proceedings in Colorado, Minnesota and San Diego and saw favorable legislation passed in Minnesota and Texas.

Xcel CEO Ben Fowke said the company is well positioned to meet the Environmental Protection Agency’s Clean Power Plan, pointing to its recently filed Minnesota resource plan that reduces carbon emissions by 60% from 2005 levels by 2030.

Northern States Power, Xcel’s operating company in Minnesota, Wisconsin and the Dakotas, plans to be 63% carbon-free by that time by adding 1,800 MW of wind and 1,400 MW of utility-scale solar, building a 230-MW natural gas plant in North Dakota and replacing its two Sherco coal generators with a 780-MW combined-cycle plant on their Minnesota site. The plan also assumes the operation of the Monticello and Prairie Island nuclear plants through their license expirations in the early 2030s.

“This proposal will advance our shift to renewable energy, add cleaner natural gas-powered generation to our system and allow us to protect reliability, jobs and community investments,” Fowke said during a conference call Oct. 29.

Given the good news, Xcel tightened its 2015 earnings guidance range from $2 to $2.15/share to $2.05 to $2.15/share. It also stated its 2016 earnings guidance of $2.12-$2.27/share.

“We’re very confident of reaching our targets,” Fowke said.

Xcel shares, however, closed down 47 cents to $35.56 after the earnings call.

Fowke told analysts Xcel will seek rate increases in Minnesota for the next three years, taking advantage of a new state law that allows multiyear requests — and saving legal expenses in the process.

Fowke also said Xcel has transferred about $100 million worth of Kansas and Oklahoma transmission facilities (230 miles of 345-kV transmission and associated equipment) from its Southwestern Public Service affiliate to its independent transmission companies. Xcel last year created Xcel Energy Southwest Transmission and Xcel Energy Transmission Development to compete for FERC Order 1000 projects in SPP and MISO.

“We felt it was an opportune [time] to move those assets into one of our transcos,” Fowke said. “There’s some value to having actual assets inside a transco. It gives you more gravitas when we get to the Order 1000 bidding process.”