Ralph Izzo, chairman, president and chief executive officer, commented, "We continue to make great progress on a number of fronts to position ourselves for the future. We had a strong operating quarter that once again produced non-GAAP Operating Earnings in line with our expectations for the year. Our GAAP results for the quarter reflect an asset impairment charge related to the quarterly assessment of the likelihood and timing of potential asset sales in connection with exploring strategic alternatives for PSEG Power's non-nuclear generating assets. As part of this transition, PSEG recently completed the sale of the 467 MW-dc Solar Source portfolio, and we are in advanced discussions regarding the potential sale of the fossil fleet."
"The marketing of the fossil assets has garnered a significant level of interest from numerous qualified buyers in a competitive process, which is advancing as expected. We announced the exploration of strategic alternatives last July with the intention of simplifying PSEG's business mix to be primarily a regulated electric and gas utility, complemented by a significantly contracted, carbon-free energy infrastructure company through the retention of our nuclear fleet and investments in regional offshore wind. Over the past year we have eliminated uncertainty in many areas, and continue to favorably position the company for the future," said Izzo.
"We are also pleased with our recent announcement of PSE&G's agreement with the New Jersey Board of Public Utilities (BPU) and the Division of Rate Counsel to voluntarily reduce its annual transmission revenue requirement, which includes a reduction in its base return on equity on its transmission formula rate to 9.90% from 11.18%", Izzo continued. "This agreement is a balanced resolution that delivers timely savings to customers and resolves a significant regulatory uncertainty for PSE&G. Pending approval from the Federal Energy Regulatory Commission (FERC), the settlement is anticipated to save a typical electric residential customer approximately 3% on their monthly bills upon implementation."
On June 14, New Jersey lifted its Public Health Emergency Order in effect since March 2020. The continued re-opening of the New Jersey economy has lifted commercial activity and resulted in a rebound in demand. Electric sales adjusted for weather were up nearly 4% over the second quarter of 2020, led by an 11% increase in Commercial sales, offset by a 5% decline in Residential sales as people gradually return to work outside the home.
Also in June, PSEG furthered its leadership position in the industry by accelerating our Net Zero carbon emissions vision by 20 years to 2030 and expanding the goal to include direct greenhouse gas (GHG) emissions (for scope 1) and indirect GHG emissions (for scope 2) from operations at both PSEG Power and PSE&G. In establishing our Net Zero by 2030 vision, we assumed advances in technology, public policy, customer behavior and offsets. Scope 1 emissions include power generation, methane leaks, vehicle fleet emissions, sulfur hexafluoride and refrigerant leaks. Scope 2 emissions include both gas and electric purchased energy for our PSE&G facilities and line losses.