EX-99 2 ex99.htm EXHIBIT 99

Exhibit 99

 

 

 

(PSEG LOGO)

   Investor News

NYSE:PEG


 

 

 

For further information, contact:

 

 

Ø   Mort Plawner, Treasurer

Phone: 973-430-6474

 

Ø   Greg McLaughlin, Sr. Investor Relations Analyst

Phone: 973-430-6568

 

Ø   Yaeni Kim, Sr. Investor Relations Analyst

Phone: 973-430-6596

 

PSEG ANNOUNCES THIRD QUARTER 2006 RESULTS:

NET INCOME AND OPERATING EARNINGS OF $1.48 PER SHARE

An Increase of 34 Cents in Operating Earnings for the Quarter

Agreements filed in PSE&G rate proceedings

Company Affirms 2006 Guidance of $3.45 to $3.75 per share and
2007 Guidance of $4.60 to $5.00 per share

          (Newark, NJ November 1, 2006) – Public Service Enterprise Group (PSEG) announced today that third quarter 2006 Net Income and Operating Earnings were $1.48 per share, an increase of 34 cents for Operating Earnings over the third quarter of 2005.

          For the year-to-date, PSEG reported Net Income of $3.12 per share. Operating Earnings were $2.95 per share, which excludes the gain from the sale and operations of assets in Poland (90 cents per share), the loss from the sale of RGE (70 cents per share), and 3 cents per share of costs associated with the merger agreement with Exelon which was terminated in September.

          E. James Ferland, Chairman and Chief Executive Officer, noted that the strong third quarter results were in line with the 2006 Operating Earnings guidance of $3.45 to $3.75 per share. Ferland noted that the recent settlements of the gas and electric cases were fair but are not final until acted upon by the New Jersey Board of Public Utilities (BPU). Ferland also reaffirmed 2007 Guidance of $4.60 to $5.00 per share. The tables below provide a reconciliation of PSEG’s Net Income to Operating Earnings for the third quarter and year-to-date.

Exhibit 99

PSEG CONSOLIDATED EARNINGS
Third Quarter Comparative Results
2006 and 2005

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income
($M)

 

Diluted Earnings
Per Share

 

 

 

 

2006

 

2005

 

2006

 

2005

 

 

Net Income

 

$

374

 

$

253

 

$

1.48

 

$

1.03

 

 

Add: Operations of Polish Assets

 

 

—

 

 

9

 

 

—

 

 

.04

 

Add: Loss on Sale & Operations of Waterford

 

 

—

 

 

7

 

 

—

 

 

.03

 

 

Income from Continuing Operations

 

 

374

 

 

269

 

 

1.48

 

 

1.10

 

 

Add: Merger Related Costs

 

 

(2

)

 

10

 

 

—

 

 

.04

 

 

Operating Earnings (Non-GAAP)

 

$

372

 

$

279

 

$

1.48

 

$

1.14

 

 

All amounts are after federal and state income taxes

 

Avg. Shares

 

 

 

252M

 

244M

 


PSEG CONSOLIDATED EARNINGS
September 30 Year-to-Date Comparative Results
2006 and 2005

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income
($M)

 

Diluted Earnings
Per Share

 

 

 

 

2006

 

2005

 

2006

 

2005

 

 

Net Income

 

$

786

 

$

456

 

$

3.12

 

$

1.87

 

 

Deduct: Gain on Sale & Operations of Polish Assets

 

 

(227

)

 

(13

)

 

(.90

)

 

(.05

)  

Add: Loss on Sale & Operations of Waterford

 

 

—

 

 

197

 

 

—

 

 

.81

 

 

Income from Continuing Operations

 

 

559

 

 

640

 

 

2.22

 

 

2.63

 

 

Add: Merger Related Costs

 

 

7

 

 

26

 

 

.03

 

 

.11

 

Loss on Sale of RGE

 

 

178

 

 

—

 

 

.70

 

 

—

 

 

Operating Earnings (Non-GAAP)

 

$

744

 

$

666

 

$

2.95

 

$

2.74

 

 

All amounts are after federal and state income taxes

 

Avg. Shares

 

 

 

252M

 

243M

 

PSEG believes that the non-GAAP financial measure of “Operating Earnings” provides a consistent and comparable measure of performance of its businesses to help shareholders understand performance trends. Attachments to this release provide a reconciliation of Net Income to Operating Earnings and other summary exhibits for the third quarter and year-to-date 2006 and 2005 for PSEG’s principal subsidiaries – PSE&G, PSEG Power and PSEG Energy Holdings. We have also included Attachment 11 to this release which shows the non-trading mark to market activity for the quarter and year-to-date periods for Power and Energy Holdings.

Exhibit 99

BUSINESS SEGMENT REVIEWS

PSEG Power

          PSEG Power reported operating earnings of $203 million, or 81 cents per share for the third quarter of 2006, an increase of $67 million, or 26 cents per share from the third quarter of 2005.

          Higher realized prices primarily from forward sales contracts added 34 cents to Power’s earnings for the quarter. “Most of this increase resulted from the rolling nature of our hedge contracts, including 17 cents driven by a full quarter of higher BGS contracts.” noted Ferland. “The continuing benefits of the market-priced contracts from the 2006 BGS auction were realized in the third quarter and are reflected in our earnings expectations for 2006. Our fleet of nuclear units continued their excellent operations with the Hope Creek and Salem units running at about 100% during the summer months. These improved nuclear operations added about another 3 cents per share from the same quarter of last year,” said Ferland.

          “Our nuclear units have undergone considerable improvements as a result of the Operating Services Contract (OSC) established with Exelon in January 2005. We had record output from Salem and Hope Creek in 2005 and we continue to build on that success this year” Ferland said. Through September, the aggregate year-to-date capacity factor was 96%, as opposed to 88% through September of last year. The performance improvements have also been recognized by the Nuclear Regulatory Commission, which has ended its expanded inspection activities of our work environment and returned to its normal reactor oversight process. PSEG has provided notice to Exelon that it is electing to continue the OSC for two years, during which time the companies will move into a transition phase. At the same time, PSEG continues consideration of a number of long-term alternatives and expects to define its long term strategy well before the two year period is completed. PSEG has the right to extend the transition phase of the OSC for an additional year if it so elects.

          Partially offsetting these gains were approximately 6 cents of higher interest and depreciation charges associated with Power’s Linden Generating Station being placed in-service in May of this year. Also, the third quarter of this year overcame the absence of nuclear decommissioning trust fund gains of $38 million that were recognized in the third quarter of last year causing a year over year decrease of 9 cents. The prior year gains in the NDT fund were the result of restructuring and asset rebalancing.

          In 2002, Power entered into a consent decree with federal and state environmental regulators which required the investment in pollution control equipment at certain of its power units, including the installation of pollution control equipment at its Hudson station by December 31 of this year. The company has proposed an alternate pollution reduction plan that would achieve similar emission reductions and would allow for the Hudson unit to continue operating on coal. Power believes it is close to an agreement regarding this pollution reduction control plan and it has increased its environmental reserves by approximately $15 million, or 6 cents per share in the third quarter, to cover costs expected to be incurred as a result of this potential agreement.

Exhibit 99

PSE&G

          PSE&G reported operating earnings of $86 million or 34 cents per share for the third quarter, 13 cents lower than comparable 2005 results of $115 million or 47 cents per share. For the quarter, weather, while above normal, was below last year’s record setting levels. Coupled with reduced demand due to higher BGS prices these items combined for a reduction of 5 cents per share.

          “PSE&G continues to excel in the reliable delivery of both gas and electricity. Reliability of the PSE&G system remained among the best in the country this summer despite six major summer storms and periods of record heat that pushed electric demand to an all-time peak” said Ralph Izzo, President and Chief Operating Officer.

          Also, quarterly results were lower than last year by 4 cents due to the elimination of the depreciation credit in December 2005 and by an additional 3 cents due to higher depreciation and amortization and increased O&M.

          PSE&G filed agreements achieved with all major parties to three separate rate proceedings. The agreements now await BPU review and action, and would resolve open matters involving gas delivery base rates, the expiration of an electric rate credit, and new residential gas supply rates. The gas base rate settlement provides for an additional $79 million of margin consisting of a $40 million rate increase and $39 million resulting from lower non-cash depreciation and amortization expenses. The settlement in the electric distribution financial review reduced the $64 million rate credit established in August 2003 to $22 million which, with volume growth, represents additional revenues of $47 million. “The agreements with the BPU staff, RPA and other intervening parties indicate the mutual resolve for balanced regulatory decisions so that the utility can maintain its exemplary service to its customers while providing a fair return to its shareholders,” said Izzo. “I am also pleased that we were able to lower gas residential bills by 4.4 percent and only increase electric bills by less than 1%.”

PSEG Energy Holdings

          Holdings reported operating earnings of $101 million, or 40 cents per share, an increase of $53 million or 20 cents per share from the third quarter of 2005. The improvement in spark spreads in the Texas market seen earlier this year continued into the third quarter of this year. “However spark spreads have softened a bit recently so we don’t anticipate this benefit to continue into the next quarter,” said Izzo.

          PSEG Global’s Texas plants entered into long-term contracts last fall for a portion of their output that is subject to mark-to-market accounting treatment. Due to recent price declines in the market relative to these fixed-price contracts, the current period mark-to-market unrealized gains totaled approximately 12 cents per share and 15 cents per share for the quarter and year-to-date, respectively.

          Holdings also reported continued lower interest expense for the quarter. Proceeds from asset sales in Poland and Brazil had been invested with PSEG. Interest received on this inter-

Exhibit 99

company loan, combined with the redemption of the 2007 bonds that were redeemed in January of this year reduced interest expense by 4 cents per share. Holdings utilized the proceeds from the asset sales and cash accumulated from ongoing operations to fund a partial call of $300 million of its senior notes due in 2008 and return $425 million of capital to PSEG. The costs associated with the redemption totaled approximately 3 cents per share and were included in third quarter results. Also, Holdings had lower income taxes this quarter relative to last year, contributing approximately 9 cents, largely driven by the absence of tax expenses incurred in the third quarter of 2005 in connection with the repatriation of funds under the JOBS Act.

* * * * * * * * *

Corporate Profile

Public Service Enterprise Group (PSEG) (NYSE:PEG) is a publicly traded diversified energy company with annual revenues of more than $12 billion, and three principal subsidiaries: PSEG Power, one of the largest independent power producers in the U.S.; Public Service Electric and Gas Company (PSE&G), New Jersey’s oldest and largest energy distribution utility company; and, PSEG Energy Holdings, a holding company for other non-regulated energy businesses.

Forward-Looking Statement

Readers are cautioned that statements contained in this press release about our and our subsidiaries’ future performance, including future revenues, earnings, strategies, prospects and all other statements that are not purely historical, are forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. Although we believe that our expectations are based on reasonable assumptions, we can give no assurance they will be achieved. The results or events predicted in these statements may differ materially from actual results or events. Factors which could cause results or events to differ from current expectations include, among other things: the effects of weather; the performance of generating units and transmission systems; the availability and prices for oil, gas, coal, nuclear fuel, capacity and electricity; changes in the markets for electricity and other energy-related commodities; changes in the number of participants and the risk profile of such participants in the energy marketing and trading business; the effectiveness of our risk management and internal controls systems; the effects of regulatory decisions and changes in law; changes in competition in the markets we serve; the ability to recover regulatory assets and other potential stranded costs; the outcomes of litigation and regulatory proceedings or inquiries; the timing and success of efforts to develop domestic and international power projects; conditions of the capital markets and equity markets; advances in technology; changes in accounting standards; changes in interest rates and in financial and foreign currency markets generally; the economic and political climate and growth in the areas in which we conduct our activities; and changes in corporate strategies. For further information, please refer to our Annual Report on Form 10-K and subsequent reports on Form 10-Q and Form 8-K filed with the Securities and Exchange Commission. These documents address in further detail our business, industry issues and other factors that could cause actual results to differ materially from those indicated in this release. In addition, any forward-looking statements included herein represent our estimates only as of today and should not be relied upon as representing our estimates as of any subsequent date. While we may elect to update forward-looking statements from time to time, we specifically disclaim any obligation to do so, even if our estimates change, unless otherwise required by applicable securities laws.

Attachment 1

PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Quarter Ended
September 30,

 

For the Nine Months Ended
September 30,

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2006

 

2005

 

2006

 

2005

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings Results (in Millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PSE&G

 

$

86

 

$

115

 

$

198

 

$

281

 

PSEG Power

 

 

203

 

 

136

 

 

394

 

 

314

 

PSEG Energy Holdings

 

 

 

 

 

 

 

 

 

 

 

 

 

PSEG Global

 

 

92

 

 

32

 

 

156

 

 

88

 

PSEG Resources

 

 

10

 

 

17

 

 

49

 

 

39

 

PSEG Energy Holdings

 

 

(1

)

 

(1

)

 

(3

)

 

(3

)

 

 

Total PSEG Energy Holdings

 

 

101

 

 

48

 

 

202

 

 

124

 

 

 

PSEG

 

 

(18

)

 

(20

)

 

(50

)

 

(53

)

Operating Earnings

 

$

372

 

$

279

 

$

744

 

$

666

 

Loss from RGE

 

 

—

 

 

—

 

 

(178

)

 

—

 

Merger and Merger Related Costs

 

 

2

 

 

(10

)

 

(7

)

 

(26

)

Income from Continuing Operations

 

$

374

 

$

269

 

$

559

 

$

640

 

Discontinued Operations, Including (Loss) Gain on Disposal

 

 

—

 

 

(16

)

 

227

 

 

(184

)

PSEG Net Income

 

$

374

 

$

253

 

$

786

 

$

456

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fully Diluted Average Shares Outstanding (in Millions)

 

 

252

 

 

244

 

 

252

 

 

243

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Per Share Results (Diluted)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PSE&G

 

$

0.34

 

$

0.47

 

$

0.79

 

$

1.16

 

PSEG Power

 

 

0.81

 

 

0.55

 

 

1.56

 

 

1.29

 

PSEG Energy Holdings

 

 

 

 

 

 

 

 

 

 

 

 

 

PSEG Global

 

 

0.36

 

 

0.13

 

 

0.62

 

 

0.36

 

PSEG Resources

 

 

0.04

 

 

0.07

 

 

0.19

 

 

0.16

 

PSEG Energy Holdings

 

 

—

 

 

—

 

 

(0.01

)

 

(0.01

)

 

 

Total PSEG Energy Holdings

 

 

0.40

 

 

0.20

 

 

0.80

 

 

0.51

 

 

 

PSEG

 

 

(0.07

)

 

(0.08

)

 

(0.20

)

 

(0.22

)

Operating Earnings

 

$

1.48

 

$

1.14

 

$

2.95

 

$

2.74

 

Loss from RGE

 

 

—

 

 

—

 

 

(0.70

)

 

—

 

Merger and Merger Related Costs

 

 

—

 

 

(0.04

)

 

(0.03

)

 

(0.11

)

Income from Continuing Operations

 

$

1.48

 

$

1.10

 

$

2.22

 

$

2.63

 

Discontinued Operations, Including (Loss) Gain on Disposal

 

 

—

 

 

(0.07

)

 

0.90

 

 

(0.76

)

PSEG Net Income

 

$

1.48

 

$

1.03

 

$

3.12

 

$

1.87

 

Note 1:

Net Income includes preferred stock dividends relating to PSE&G of $1 million for each of the quarters ended September 30, 2006 and 2005.

Net Income includes preferred stock dividends / preference units distributions relating to PSE&G of $3 million and $3 million and PSEG Global of $0 million and $3 million for the nine months ended September 30, 2006 and 2005, respectively.

Note 2:

Basic Earnings per Share from Net Income was $1.48 and $1.06 per share for the quarters ended September 30, 2006 and 2005, respectively.

Basic Earnings per Share from Net Income was $3.12 and $1.91 per share for the nine months ended September 30, 2006 and 2005, respectively.

Attachment 2

PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED
CONSOLIDATING STATEMENT OF OPERATIONS

For the Quarter Ended September 30, 2006
(Unaudited, $ Millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PSEG

 

OTHER

 

PSE&G

 

PSEG
POWER

 

PSEG ENERGY
HOLDINGS

 

 

 

 

 

 

 

 

 

 

 

 

(Note 2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATING REVENUES

 

$

3,392

 

$

(515

)

$

2,017

 

$

1,489

 

$

401

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATING EXPENSES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Energy Costs

 

 

1,809

 

 

(512

)

 

1,296

 

 

830

 

 

195

 

Operation and Maintenance

 

 

541

 

 

(8

)

 

278

 

 

222

 

 

49

 

Depreciation and Amortization

 

 

234

 

 

5

 

 

174

 

 

41

 

 

14

 

Taxes Other Than Income Taxes

 

 

32

 

 

—

 

 

32

 

 

—

 

 

—

 

 

 

 

 

 

 

 

Total Operating Expenses

 

 

2,616

 

 

(515

)

 

1,780

 

 

1,093

 

 

258

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from Equity Method Investments

 

 

30

 

 

—

 

 

—

 

 

—

 

 

30

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATING INCOME

 

 

806

 

 

—

 

 

237

 

 

396

 

 

173

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Income and Deductions

 

 

7

 

 

(8

)

 

6

 

 

11

 

 

(2

)

Interest Expense

 

 

(209

)

 

(26

)

 

(86

)

 

(47

)

 

(50

)

Preferred Securities Dividends

 

 

(1

)

 

—

 

 

(1

)

 

—

 

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INCOME BEFORE INCOME TAXES (Note 1)

 

 

603

 

 

(34

)

 

156

 

 

360

 

 

121

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income Tax Benefit (Expense)

 

 

(229

)

 

15

 

 

(69

)

 

(155

)

 

(20

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET INCOME (LOSS)

 

$

374

 

$

(19

)

$

87

 

$

205

 

$

101

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Merger and Merger-Related Costs, net of tax

 

 

(2

)

 

1

 

 

(1

)

 

(2

)

 

—

 

 

 

 

 

 

 

 

OPERATING EARNINGS

 

$

372

 

$

(18

)

$

86

 

$

203

 

$

101

 

 

 

 

 

 

 

 

For the Quarter Ended September 30, 2005
(Unaudited, $ Millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PSEG

 

OTHER

 

PSE&G

 

PSEG
POWER

 

PSEG ENERGY
HOLDINGS

 

 

 

 

 

 

 

 

 

 

 

 

(Note 2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATING REVENUES

 

$

3,324

 

$

(388

)

$

1,934

 

$

1,444

 

$

334

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATING EXPENSES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Energy Costs

 

 

1,979

 

 

(383

)

 

1,195

 

 

983

 

 

184

 

Operation and Maintenance

 

 

537

 

 

(3

)

 

276

 

 

223

 

 

41

 

Depreciation and Amortization

 

 

204

 

 

5

 

 

155

 

 

34

 

 

10

 

Taxes Other Than Income Taxes

 

 

34

 

 

(1

)

 

35

 

 

—

 

 

—

 

 

 

 

 

 

 

 

Total Operating Expenses

 

 

2,754

 

 

(382

)

 

1,661

 

 

1,240

 

 

235

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from Equity Method Investments

 

 

30

 

 

 

 

 

—

 

 

—

 

 

30

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATING INCOME (LOSS)

 

 

600

 

 

(6

)

 

273

 

 

204

 

 

129

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Income and Deductions

 

 

61

 

 

(4

)

 

2

 

 

61

 

 

2

 

Interest Expense

 

 

(208

)

 

(34

)

 

(86

)

 

(32

)

 

(56

)

Preferred Securities Dividends

 

 

(1

)

 

—

 

 

(1

)

 

—

 

 

—

 

 

 

 

 

 

 

 

INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES (Note 1)

 

 

452

 

 

(44

)

 

188

 

 

233

 

 

75

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income Tax Benefit (Expense)

 

 

(183

)

 

19

 

 

(74

)

 

(101

)

 

(27

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INCOME FROM CONTINUING OPERATIONS

 

 

269

 

 

(25

)

 

114

 

 

132

 

 

48

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Discontinued Operations, including Loss on Disposal, net of tax

 

 

(16

)

 

—

 

 

—

 

 

(7

)

 

(9

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET INCOME (LOSS)

 

$

253

 

$

(25

)

$

114

 

$

125

 

$

39

 

 

 

 

 

 

 

 

Discontinued Operations, incl. Loss on Disposal, net of tax

 

 

16

 

 

—

 

 

—

 

 

7

 

 

9

 

Merger and Merger-Related Costs, net of tax

 

 

10

 

 

5

 

 

1

 

 

4

 

 

—

 

 

 

 

 

 

 

 

OPERATING EARNINGS

 

$

279

 

$

(20

)

$

115

 

$

136

 

$

48

 

 

 

 

 

 

 

 

Note 1:

Income before Income Taxes includes preferred stock dividends relating to PSE&G of $1 million for each of the quarters ended September 30, 2006 and 2005.

Note 2:

Primarily includes financing activities at the parent and intercompany eliminations.

Attachment 3

PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED
CONSOLIDATING STATEMENT OF OPERATIONS

For the Nine Months Ended September 30, 2006
(Unaudited, $ Millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PSEG

 

OTHER

 

PSE&G

 

PSEG
POWER

 

PSEG ENERGY
HOLDINGS

 

 

 

 

 

 

 

 

 

 

 

 

(Note 2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATING REVENUES

 

$

9,516

 

$

(2,056

)

$

5,901

 

$

4,591

 

$

1,080

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATING EXPENSES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Energy Costs

 

 

5,400

 

 

(2,047

)

 

3,872

 

 

2,992

 

 

583

 

Operation and Maintenance

 

 

1,705

 

 

(21

)

 

855

 

 

721

 

 

150

 

Write-down of Project Investments

 

 

263

 

 

—

 

 

—

 

 

—

 

 

263

 

Depreciation and Amortization

 

 

645

 

 

15

 

 

476

 

 

116

 

 

38

 

Taxes Other Than Income Taxes

 

 

100

 

 

—

 

 

100

 

 

—

 

 

—

 

 

 

 

 

 

 

 

Total Operating Expenses

 

 

8,113

 

 

(2,053

)

 

5,303

 

 

3,829

 

 

1,034

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from Equity Method Investments

 

 

93

 

 

—

 

 

—

 

 

—

 

 

93

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATING INCOME (LOSS)

 

 

1,496

 

 

(3

)

 

598

 

 

762

 

 

139

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Income and Deductions

 

 

62

 

 

(12

)

 

16

 

 

53

 

 

5

 

Interest Expense

 

 

(617

)

 

(81

)

 

(254

)

 

(131

)

 

(151

)

Preferred Securities Dividends

 

 

(3

)

 

—

 

 

(3

)

 

—

 

 

—

 

 

 

 

 

 

 

 

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES (Note 1)

 

 

938

 

 

(96

)

 

357

 

 

684

 

 

(7

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income Tax Benefit (Expense)

 

 

(379

)

 

40

 

 

(160

)

 

(290

)

 

31

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INCOME (LOSS) FROM CONTINUING OPERATIONS

 

 

559

 

 

(56

)

 

197

 

 

394

 

 

24

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss from Discontinued Operations, including Gain on Disposal, net of tax

 

 

227

 

 

—

 

 

—

 

 

—

 

 

227

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET INCOME (LOSS)

 

$

786

 

$

(56

)

$

197

 

$

394

 

$

251

 

 

 

 

 

 

 

 

(Income) from Discontinued Operations, including Gain on Disposal, net of tax

 

 

(227

)

 

—

 

 

—

 

 

—

 

 

(227

)

Loss on Sale of RGE, net of tax

 

 

178

 

 

—

 

 

—

 

 

—

 

 

178

 

Merger and Merger-Related Costs, net of tax

 

 

7

 

 

6

 

 

1

 

 

—

 

 

—

 

 

 

 

 

 

 

 

OPERATING EARNINGS

 

$

744

 

$

(50

)

$

198

 

$

394

 

$

202

 

 

 

 

 

 

 

 

For the Nine Months Ended September 30, 2005
(Unaudited, $ Millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PSEG

 

OTHER

 

PSE&G

 

PSEG
POWER

 

PSEG ENERGY
HOLDINGS

 

 

 

 

 

 

 

 

 

 

 

 

(Note 2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATING REVENUES

 

$

8,940

 

$

(1,770

)

$

5,559

 

$

4,234

 

$

917

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATING EXPENSES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Energy Costs

 

 

5,144

 

 

(1,753

)

 

3,472

 

 

2,941

 

 

484

 

Operation and Maintenance

 

 

1,661

 

 

(14

)

 

839

 

 

685

 

 

151

 

Depreciation and Amortization

 

 

562

 

 

13

 

 

418

 

 

96

 

 

35

 

Taxes Other Than Income Taxes

 

 

105

 

 

(1

)

 

106

 

 

—

 

 

—

 

 

 

 

 

 

 

 

Total Operating Expenses

 

 

7,472

 

 

(1,755

)

 

4,835

 

 

3,722

 

 

670

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from Equity Method Investments

 

 

90

 

 

—

 

 

—

 

 

—

 

 

90

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATING INCOME (LOSS)

 

 

1,558

 

 

(15

)

 

724

 

 

512

 

 

337

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Income and Deductions

 

 

103

 

 

(4

)

 

5

 

 

102

 

 

—

 

Interest Expense

 

 

(606

)

 

(96

)

 

(256

)

 

(86

)

 

(168

)

Preferred Securities Dividends

 

 

(3

)

 

3

 

 

(3

)

 

—

 

 

(3

)

 

 

 

 

 

 

 

INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES (Note 1)

 

 

1,052

 

 

(112

)

 

470

 

 

528

 

 

166

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income Tax Benefit (Expense)

 

 

(412

)

 

46

 

 

(191

)

 

(225

)

 

(42

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INCOME FROM CONTINUING OPERATIONS

 

 

640

 

 

(66

)

 

279

 

 

303

 

 

124

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (Loss) from Discontinued Operations, including Loss on Disposal, net of tax

 

 

(184

)

 

—

 

 

—

 

 

(197

)

 

13

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET INCOME (LOSS)

 

$

456

 

$

(66

)

$

279

 

$

106

 

$

137

 

 

 

 

 

 

 

 

(Income) Loss from Discontinued Operations, incl. Loss on Disposal, net of tax

 

 

184

 

 

—

 

 

—

 

 

197

 

 

(13

)

Merger and Merger-Related Costs, net of tax

 

 

26

 

 

13

 

 

2

 

 

11

 

 

—

 

 

 

 

 

 

 

 

OPERATING EARNINGS

 

$

666

 

$

(53

)

$

281

 

$

314

 

$

124

 

 

 

 

 

 

 

 

Note 1:

Income from Continuing Operations before Income Taxes includes preferred stock dividends / preference units distributions relating to PSE&G of $3 million and $3 million and PSEG Global of $0 million and $3 million for the nine months ended September 30, 2006 and 2005, respectively.

Note 2:

Primarily includes financing activities at the parent and intercompany eliminations.

Attachment 4

PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED
CAPITALIZATION SCHEDULE
(Unaudited, $ Millions)

 

 

 

 

 

 

 

 

 

 

September 30,
2006

 

December 31,
2005

 

 

 

 

 

 

 

 

 

 

 

 

 

DEBT

 

 

 

 

 

 

 

Commercial Paper and Loans

 

$

555

 

$

100

 

Long-Term Debt, including amounts due within one year

 

 

7,898

 

 

9,025

 

Securitization Debt, including amounts due within one year

 

 

1,927

 

 

2,041

 

Project Level, Non-Recourse Debt, including amounts due within one year

 

 

896

 

 

935

 

Debt Supporting Trust Preferred Securities, including amounts due within one year

 

 

660

 

 

814

 

 

 

 

 

Total Debt

 

 

11,936

 

 

12,915

 

 

 

 

 

 

 

 

 

SUBSIDIARY’S PREFERRED SECURITIES

 

 

80

 

 

80

 

 

 

 

 

 

 

 

 

 

 

 

 

COMMON STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

Common Stock

 

 

4,644

 

 

4,618

 

Treasury Stock

 

 

(527

)

 

(532

)

Retained Earnings

 

 

2,901

 

 

2,545

 

Accumulated Other Comprehensive Loss

 

 

(33

)

 

(609

)

 

 

 

 

Total Common Stockholders’ Equity

 

 

6,985

 

 

6,022

 

 

 

 

 

Total Capitalization

 

$

19,001

 

$

19,017

 

 

 

 

 

PSEG’s credit agreements contain covenants that require PSEG’s debt to capitalization ratio not to exceed 70.0% at the end of any quarterly period. This ratio is presented for the benefit of the investors and the related securities to which the covenants apply and is not intended as a financial performance or liquidity measure.

The debt to capitalization ratio calculated under PSEG’s credit agreements as of September 30, 2006 was 52.8%. The ratio as calculated pursuant to these covenants excludes non-recourse project debt ($896 million), securitization debt ($1.927 billion) and Debt Supporting Trust Preferred Securities ($660 million), which is now included in Long-Term debt due to the adoption of Financial Interpretation 46. It also includes capital lease obligations ($51 million) and certain other obligations such as guarantees and letters of credit ($157 million).

The debt to capitalization ratio calculated under PSEG’s credit agreements as of December 31, 2005 was 59.9%. The ratio as calculated pursuant to these covenants excludes non-recourse project debt ($935 million), securitization debt ($2.041 billion) and Debt Supporting Trust Preferred Securities ($814 million), which is now included in Long-Term debt due to the adoption of Financial Interpretation 46. It also includes capital lease obligations ($53 million) and certain other obligations such as guarantees and letters of credit ($1.139 billion).

Attachment 5

PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED
CONDENSED STATEMENTS OF CASH FLOWS
(Unaudited, $ Millions)

 

 

 

 

 

 

 

 

 

 

For the Nine Months Ended September 30,

 

 

 

2006

 

2005

 

 

 

 

 

CASH FLOWS FROM OPERATING ACTIVITIES

 

 

 

 

 

 

 

Net Income

 

$

786

 

$

456

 

Adjustments to Reconcile Net Income to Net Cash Flows From Operating Activities

 

 

658

 

 

447

 

 

 

 

 

Net Cash Provided By Operating Activities

 

 

1,444

 

 

903

 

 

 

 

 

 

 

 

 

 

 

 

 

NET CASH USED IN INVESTING ACTIVITIES

 

 

(53

)

 

(394

)

 

 

 

 

 

 

 

 

 

 

 

 

NET CASH USED IN FINANCING ACTIVITIES

 

 

(1,385

)

 

(173

)

 

 

 

 

 

 

 

 

 

 

 

 

Effect of Exchange Rate Change

 

 

(2

)

 

1

 

 

 

 

 

Net Increase in Cash and Cash Equivalents

 

 

4

 

 

337

 

 

 

 

 

 

 

 

 

Cash and Cash Equivalents at Beginning of Period

 

 

288

 

 

263

 

 

 

 

 

Cash and Cash Equivalents at End of Period

 

$

292

 

$

600

 

 

 

 

 

Attachment 6

PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED
Quarter-to-Quarter EPS Reconciliation
September 30, 2006 vs. September 30, 2005
(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

PSEG 3rd Quarter 2005 Net Income

 

 

 

 

 

 

 

$

1.03

 

Loss from Discontinued Operations, including Loss on Disposal

 

 

 

 

 

 

 

 

0.07

 

PSEG 3rd Quarter 2005 Income from Continuing Operations

 

 

 

 

 

 

 

$

1.10

 

Merger and Merger Related Costs

 

 

 

 

 

 

 

 

0.04

 

PSEG 3rd Quarter 2005 Operating Earnings

 

 

 

 

 

 

 

$

1.14

 

 

 

 

 

 

 

 

 

 

 

 

PSE&G

 

 

 

 

 

 

 

 

B/(W

)

 

 

 

 

 

 

 

 

 

3rd Quarter 2005

 

 

 

 

$

0.47

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weather

 

 

 

 

 

(0.03

)

 

 

 

Demand

 

 

 

 

 

(0.02

)

 

 

 

Expiration of Excess Depreciation Credit

 

 

 

 

 

(0.04

)

 

 

 

Higher O&M

 

 

 

 

 

(0.01

)

 

 

 

Depreciation

 

 

 

 

 

(0.02

)

 

 

 

Additional Shares Outstanding

 

 

 

 

 

(0.01

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3rd Quarter 2006

 

 

 

 

$

0.34

 

$

(0.13

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PSEG Power

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3rd Quarter 2005

 

 

 

 

$

0.55

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nuclear Output

 

 

0.03

 

 

 

 

 

 

 

Increased Output, Recontracting and Other

 

 

0.34

 

 

 

 

 

 

 

MTM

 

 

0.08

 

 

 

 

 

 

 

BGSS

 

 

0.03

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Margin

 

 

 

 

 

0.48

 

 

 

 

New Assets (Depreciation and Interest)

 

 

 

 

 

(0.06

)

 

 

 

Higher O&M

 

 

 

 

 

(0.01

)

 

 

 

Depreciation, Interest, and Other

 

 

 

 

 

0.02

 

 

 

 

NDT

 

 

 

 

 

(0.09

)

 

 

 

Environmental Reserve

 

 

 

 

 

(0.06

)

 

 

 

Additional Shares Outstanding

 

 

 

 

 

(0.02

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3rd Quarter 2006

 

 

 

 

$

0.81

 

$

0.26

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PSEG Energy Holdings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3rd Quarter 2005

 

 

 

 

$

0.20

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

MTM - TIE

 

 

 

 

 

0.13

 

 

 

 

Lower effective tax rate in 2006, largely due to tax on repatriation in 2005

 

 

 

 

 

0.09

 

 

 

 

Global Operations - TIE & Other

 

 

 

 

 

0.03

 

 

 

 

Lower Interest Expense

 

 

 

 

 

0.04

 

 

 

 

Cost of Extinguishment of Debt

 

 

 

 

 

(0.03

)

 

 

 

RGE operations, change in earnings due to sale

 

 

 

 

 

(0.03

)

 

 

 

Lower lease income

 

 

 

 

 

(0.02

)

 

 

 

Additional Shares Outstanding

 

 

 

 

 

(0.01

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3rd Quarter 2006

 

 

 

 

$

0.40

 

$

0.20

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Public Service Enterprise Group

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3rd Quarter 2005

 

 

 

 

$

(0.08

)

 

 

 

 

 

 

 

 

 

 

 

 

Interest savings

 

 

 

 

 

0.01

 

 

 

 

 

 

 

 

 

 

 

 

 

3rd Quarter 2006

 

 

 

 

$

(0.07

)

$

0.01

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PSEG 3rd Quarter 2006 Operating Earnings

 

 

 

 

 

 

 

$

1.48

 

Merger and Merger Related Costs

 

 

 

 

 

 

 

 

—

 

Loss on Sale of RGE

 

 

 

 

 

 

 

 

—

 

PSEG 3rd Quarter 2006 Loss from Continuing Operations

 

 

 

 

 

 

 

$

1.48

 

Income from Discontinued Operations, including Gain on Disposal

 

 

 

 

 

 

 

 

—

 

PSEG 3rd Quarter 2006 Net Income

 

 

 

 

 

 

 

$

1.48

 

Attachment 7

PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED
Year to Date EPS Reconciliation
September 30, 2006 vs. September 30, 2005
(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

PSEG Net Income for the Nine Months Ended September 30, 2005

 

 

 

 

 

 

 

$

1.87

 

Loss from Discontinued Operations, including Loss on Disposal

 

 

 

 

 

 

 

 

0.76

 

PSEG Income from Continuing Operations for the Nine Months Ended September 30, 2005

 

 

 

 

 

 

 

$

2.63

 

Merger and Merger Related Costs

 

 

 

 

 

 

 

 

0.11

 

PSEG Operating Earnings for the Nine Months Ended September 30, 2005

 

 

 

 

 

 

 

$

2.74

 

 

 

 

 

 

 

 

 

 

 

 

PSE&G

 

 

 

 

 

 

 

 

B/(W

)

 

 

 

 

 

 

 

 

 

Year to Date September 30, 2005

 

 

 

 

$

1.16

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weather

 

 

 

 

 

(0.13

)

 

 

 

Demand

 

 

 

 

 

(0.02

)

 

 

 

Expiration of Excess Depreciation Credit

 

 

 

 

 

(0.12

)

 

 

 

Transmission

 

 

 

 

 

0.04

 

 

 

 

Higher O&M

 

 

 

 

 

(0.05

)

 

 

 

Depreciation & Amortization

 

 

 

 

 

(0.04

)

 

 

 

Other

 

 

 

 

 

(0.02

)

 

 

 

Additional Shares Outstanding

 

 

 

 

 

(0.03

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year to Date September 30, 2006

 

 

 

 

$

0.79

 

$

(0.37

)

 

 

 

 

 

 

 

 

 

PSEG Power

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year to Date September 30, 2005

 

 

 

 

$

1.29

 

 

 

 

 

 

 

 

 

 

 

 

 

Nuclear Output

 

 

0.19

 

 

 

 

 

 

 

Increased Output, Recontracting and Other

 

 

0.66

 

 

 

 

 

 

 

BGSS

 

 

(0.10

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Margin

 

 

 

 

 

0.75

 

 

 

 

New Assets (BEC & Linden)

 

 

 

 

 

(0.17

)

 

 

 

Higher O&M

 

 

 

 

 

(0.09

)

 

 

 

Depreciation, Interest, and Other

 

 

 

 

 

(0.02

)

 

 

 

NDT

 

 

 

 

 

(0.08

)

 

 

 

Environmental Reserve

 

 

 

 

 

(0.06

)

 

 

 

Additional Shares Outstanding

 

 

 

 

 

(0.06

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year to Date September 30, 2006

 

 

 

 

$

1.56

 

$

0.27

 

 

 

 

 

 

 

 

 

 

PSEG Energy Holdings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year to Date September 30, 2005

 

 

 

 

$

0.51

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

MTM - TIE

 

 

 

 

 

0.17

 

 

 

 

Operations - TIE

 

 

 

 

 

0.12

 

 

 

 

Write-off of Resources UAL lease in 2005

 

 

 

 

 

0.06

 

 

 

 

FX Gains in 2006 and Losses in 2005

 

 

 

 

 

0.04

 

 

 

 

Lower Interest Expense

 

 

 

 

 

0.04

 

 

 

 

Other

 

 

 

 

 

0.01

 

 

 

 

Absence of Gains from 2005 (Eagle Point, SEGS, MPC)

 

 

 

 

 

(0.14

)

 

 

 

Additional Shares Outstanding

 

 

 

 

 

(0.01

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year to Date September 30, 2006

 

 

 

 

$

0.80

 

$

0.29

 

 

 

 

 

 

 

 

 

 

Public Service Enterprise Group

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year to Date September 30, 2005

 

 

 

 

$

(0.22

)

 

 

 

 

 

 

 

 

 

 

 

 

Interest savings

 

 

 

 

 

0.02

 

 

 

 

 

 

 

 

 

 

 

 

 

Year to Date September 30, 2006

 

 

 

 

$

(0.20

)

$

0.02

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PSEG Operating Earnings for the Nine Months Ended September 30, 2006

 

 

 

 

 

 

 

$

2.95

 

Merger and Merger Related Costs

 

 

 

 

 

 

 

 

(0.03

)

Loss on Sale of RGE

 

 

 

 

 

 

 

 

(0.70

)

PSEG Income from Continuing Operations for the Nine Months Ended September 30, 2006

 

 

 

 

 

 

 

$

2.22

 

Income from Discontinued Operations, including Gain on Disposal

 

 

 

 

 

 

 

 

0.90

 

PSEG Net Income for the Nine Months Ended September 30, 2006

 

 

 

 

 

 

 

$

3.12

 

Attachment 8

PSEG Global L.L.C.
Investment Results
(Unaudited, $ Millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Capital at Risk (A)

 

For the Quarter Ended

 

For the Nine Months Ended

 

 

 

As of

 

September 30, 2006

 

September 30, 2006

 

Region

 

September 30,
2006

 

December 31,
2005

 

EBIT (B)

 

Non-Recourse
Interest (C)

 

EBIT (B)

 

Non-Recourse
Interest (C)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

North America (D)

 

$

542

 

$

481

 

$

110

 

$

7

 

$

197

 

$

21

 

South America

 

 

1,291

 

 

1,655

 

 

33

 

 

8

 

 

108

 

 

23

 

Loss on Sale of RGE

 

 

—

 

 

—

 

 

—

 

 

—

 

 

(263

)

 

—

 

Europe, India & Other

 

 

149

 

 

246

 

 

5

 

 

1

 

 

14

 

 

1

 

Global G&A - Unallocated

 

 

—

 

 

—

 

 

(12

)

 

—

 

 

(27

)

 

—

 

 

 

 

 

 

 

 

 

Total

 

$

1,982

 

$

2,382

 

$

136

 

$

16

 

$

29

 

$

45

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Quarter Ended

 

For the Nine Months Ended

 

 

 

 

 

 

 

 

 

September 30, 2005

 

September 30, 2005

 

 

 

 

 

 

 

 

 

 

 

 

Non-Recourse

 

 

 

 

Non-Recourse

 

Region

 

 

 

 

 

 

 

EBIT (B)

 

Interest (C)

 

EBIT (B)

 

Interest (C)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

North America

 

 

 

 

 

 

 

$

51

 

$

6

 

$

119

 

$

16

 

South America

 

 

 

 

 

 

 

 

40

 

 

10

 

 

114

 

 

28

 

Europe, India & Other

 

 

 

 

 

 

 

 

—

 

 

—

 

 

9

 

 

4

 

Global G&A - Unallocated

 

 

 

 

 

 

 

 

(4

)

 

—

 

 

(21

)

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

 

 

 

 

 

$

87

 

$

16

 

$

221

 

$

48

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Quarters Ended

 

For the Nine Months Ended

 

 

 

 

 

 

 

 

 

September 30,

 

September 30,

 

Reconciliation of EBIT to Operating Earnings

 

 

 

 

2006

 

2005

 

2006

 

2005

 

 

 

 

 

 

 

 

 

 

Total Global EBIT

 

 

 

 

 

 

 

$

136

 

$

87

 

$

29

 

$

221

 

Interest Expense

 

 

 

 

 

 

 

 

(26

)

 

(37

)

 

(98

)

 

(108

)

Income Tax Benefit on RGE Loss

 

 

 

 

 

—

 

 

—

 

 

86

 

 

—

 

Income Tax Expense

 

 

 

 

 

 

 

 

(18

)

 

(18

)

 

(38

)

 

(21

)

Minority Interest

 

 

 

 

 

 

 

 

—

 

 

—

 

 

(1

)

 

(1

)

Preference Unit Distributions

 

 

 

 

 

—

 

 

—

 

 

—

 

 

(3

)

 

 

 

 

 

 

 

 

 

 

 

 

Income (Loss) from Continuing Operations

 

 

 

92

 

 

32

 

 

(22

)

 

88

 

Loss on Sale of RGE, net of tax

 

 

 

 

 

—

 

 

—

 

 

178

 

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Earnings

 

 

 

 

 

 

 

$

92

 

$

32

 

$

156

 

$

88

 

 

 

 

 

 

 

 

 

 

 

 

 

(A) Total Capital at Risk includes Global’s gross investments less non-recourse debt at the project level.

(B) For investments accounted for under the equity method of accounting, includes Global’s share of net earnings, including Interest Expense and Income Tax Expense.

(C) Non-Recourse Interest is Interest Expense on debt that is non-recourse to Global.

(D) The $59 million increase in EBIT in North America for the quarter ended September 30, 2006, as compared to the same period in 2005, was primarily due to a $58 million increase of income from the results of operations at TIE. The $78 million increase in EBIT in North America for the nine months ended September 30, 2006, as compared to the same period in 2005, was primarily due to a $116 million increase of income from the results of operations at TIE offset by the $40 million of income from withdrawal of the Eagle Point cogeneration partnership interest in 2005.

Attachment 9

PUBLIC SERVICE ELECTRIC & GAS
Sales and Revenues to Customers
(Unaudited)
September-06

Electric Sales and Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three

 

Change vs.

 

Nine

 

Change vs.

 

Twelve

 

Change vs.

 

 

 

Months Ended

 

2005

 

Months Ended

 

2005

 

Months Ended

 

2005

 

 

 

 

 

 

 

 

 

Sales (millions kwh)

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential

 

 

4,449

 

 

-7.7

%

 

10,496

 

 

-4.7

%

 

13,526

 

 

-3.0

%

Commercial

 

 

6,672

 

 

-4.4

%

 

18,291

 

 

-0.4

%

 

24,073

 

 

0.5

%

Industrial

 

 

1,599

 

 

-10.6

%

 

4,532

 

 

-4.4

%

 

6,074

 

 

-3.8

%

Street Lighting

 

 

82

 

 

0.8

%

 

262

 

 

1.9

%

 

367

 

 

0.8

%

Interdepartmental

 

 

4

 

 

-4.2

%

 

11

 

 

-12.0

%

 

14

 

 

-43.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

12,806

 

 

-6.3

%

 

33,592

 

 

-2.3

%

 

44,054

 

 

-1.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue (in millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential

 

$

632

 

 

5.0

%

$

1,348

 

 

4.0

%

$

1,696

 

 

5.9

%

Commercial

 

 

807

 

 

12.1

%

 

1,791

 

 

10.8

%

 

2,230

 

 

12.2

%

Industrial

 

 

107

 

 

-5.5

%

 

250

 

 

-5.2

%

 

319

 

 

-5.7

%

Street Lighting

 

 

18

 

 

16.8

%

 

50

 

 

9.2

%

 

67

 

 

9.3

%

Other

 

 

89

 

 

-26.0

%

 

250

 

 

-4.5

%

 

363

 

 

8.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

1,653

 

 

5.3

%

$

3,689

 

 

5.9

%

$

4,675

 

 

8.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gas Sold and Transported

 

 

 

Three

 

Change vs.

 

Nine

 

Change vs.

 

Twelve

 

Change vs.

 

 

 

Months Ended

 

2005

 

Months Ended

 

2005

 

Months Ended

 

2005

 

 

 

 

 

 

 

 

 

Sales (millions therms)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential Sales

 

 

106

 

 

7.5

%

 

876

 

 

-12.5

%

 

1,327

 

 

-8.8

%

Commercial - Firm Sales

 

 

43

 

 

10.4

%

 

362

 

 

-9.0

%

 

525

 

 

-7.6

%

Commercial - Interr. & Cogen

 

 

11

 

 

-36.2

%

 

42

 

 

-7.8

%

 

135

 

 

125.0

%

Industrial - Firm Sales

 

 

3

 

 

-2.3

%

 

27

 

 

-19.9

%

 

40

 

 

-15.0

%

Industrial - Interr. & Cogen

 

 

110

 

 

-15.3

%

 

275

 

 

-3.6

%

 

405

 

 

8.0

%

Other Operating Revenues

 

 

0

 

 

95.9

%

 

1

 

 

-46.7

%

 

1

 

 

-129.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

273

 

 

-5.1

%

 

1,583

 

 

-10.3

%

 

2,433

 

 

-2.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gas Transported

 

 

247

 

 

-1.8

%

 

712

 

 

-9.4

%

 

1,208

 

 

-8.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue (in millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential Sales

 

$

105

 

 

43.2

%

$

877

 

 

13.7

%

$

1,273

 

 

14.5

%

Commercial - Firm Sales

 

 

33

 

 

-19.6

%

 

366

 

 

7.3

%

 

618

 

 

22.5

%

Commercial - Interr. & Cogen

 

 

9

 

 

-12.7

%

 

39

 

 

6.4

%

 

69

 

 

53.9

%

Industrial - Firm Sales

 

 

2

 

 

-24.7

%

 

27

 

 

-5.2

%

 

47

 

 

11.4

%

Industrial - Interr. & Cogen

 

 

92

 

 

-26.4

%

 

247

 

 

-2.6

%

 

406

 

 

24.9

%

Other Operating Revenues

 

 

33

 

 

-1.5

%

 

97

 

 

0.4

%

 

133

 

 

0.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

274

 

 

-4.2

%

$

1,653

 

 

8.1

%

$

2,546

 

 

18.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gas Transported

 

 

90

 

 

15.1

%

 

559

 

 

2.0

%

 

849

 

 

4.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three

 

Change vs.

 

Nine

 

Change vs.

 

Twelve

 

Change vs.

 

Weather Data

 

Months Ended

 

2005

 

Months Ended

 

2005

 

Months Ended

 

2005

 

 

 

 

 

 

 

 

Degree Days - Actual

 

 

41

 

 

355.6

%

 

2,737

 

 

-15.7

%

 

4,422

 

 

-10.3

%

Degree Days - Normal

 

 

34

 

 

 

 

 

3,117

 

 

 

 

 

4,802

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

THI Hours - Actual

 

 

11,716

 

 

-18.3

%

 

15,325

 

 

-17.6

%

 

15,824

 

 

-15.1

%

THI Hours - Normal

 

 

10,690

 

 

 

 

 

14,560

 

 

 

 

 

14,824

 

 

 

 

Attachment 10

PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED
STATISTICAL MEASURES
(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarters Ended September 30,

 

Nine Months Ended September 30,

 

 

 

2006

 

2005

 

2006

 

2005

 

 

 

 

 

 

 

Weighted Average Common Shares Outstanding (000’s)

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

251,747

 

 

239,034

 

 

251,471

 

 

238,696

 

Diluted

 

 

252,329

 

 

244,286

 

 

252,161

 

 

243,212

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock Price at End of Period

 

 

 

 

 

 

 

$

61.19

 

$

64.36

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividends Paid per Share of Common Stock

 

$

0.57

 

$

0.56

 

$

1.71

 

$

1.68

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividend Payout Ratio*

 

 

 

 

 

 

 

 

58.8

%

 

69.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividend Yield

 

 

 

 

 

 

 

 

3.7

%

 

3.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Price/Earnings Ratio*

 

 

 

 

 

 

 

 

15.9

 

 

20.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rate of Return on Average Common Equity*

 

 

 

 

 

 

 

 

12.6

%

 

13.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Book Value per Common Share

 

 

 

 

 

 

 

$

27.71

 

$

25.17

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Market Price as a Percent of Book Value

 

 

 

 

 

 

 

 

221

%

 

256

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Shareholder Return - QTR Ended

 

 

-6.7

%

 

5.8

%

 

 

 

 

 

 

Total Shareholder Return - 12 Months Ended

 

 

-1.6

%

 

57.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarters Ended September 30,

 

Nine Months Ended September 30,

 

Generation by Fuel Type

 

2006

 

2005

 

2006

 

2005

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nuclear - NJ

 

 

33

%

 

34

%

 

36

%

 

35

%

Nuclear - PA

 

 

14

%

 

15

%

 

18

%

 

19

%

 

 

 

 

 

 

Total Nuclear

 

 

47

%

 

49

%

 

54

%

 

54

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fossil - Coal - NJ

 

 

10

%

 

12

%

 

11

%

 

12

%

Fossil - Coal - PA

 

 

10

%

 

10

%

 

11

%

 

12

%

Fossil - Coal - CT

 

 

5

%

 

5

%

 

5

%

 

6

%

 

 

 

 

 

 

Total Coal

 

 

25

%

 

27

%

 

27

%

 

30

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fossil - Oil & Natural Gas - NJ

 

 

17

%

 

14

%

 

13

%

 

11

%

Fossil - Oil & Natural Gas - NY

 

 

7

%

 

5

%

 

4

%

 

2

%

Fossil - Oil & Natural Gas - CT

 

 

1

%

 

2

%

 

1

%

 

2

%

Fossil - Oil & Natural Gas - Midwest

 

 

3

%

 

3

%

 

1

%

 

1

%

 

 

 

 

 

 

Total Oil & Natural Gas

 

 

28

%

 

24

%

 

19

%

 

16

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fossil - Pumped Storage

 

 

0

%

 

0

%

 

0

%

 

0

%

 

 

 

 

 

 

 

 

 

100

%

 

100

%

 

100

%

 

100

%

*Calculation based on Operating Earnings for 12 month period ended

Attachment 11

PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED
Non-Trading Mark-to-Market
(Unaudited)
September-06

2006 Non-Trading Mark-to-Market
Energy Positions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

In Millions After-Tax

 

Q1

 

Q2

 

Q3

 

Year-to-Date

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Power

 

$

(11.4

)

$

1.3

 

$

12.0

 

$

1.9

 

Holdings

 

$

(4.1

)

$

13.0

 

$

29.3

 

$

38.2

 

 

 

Total

 

$

(15.5

)

$

14.3

 

$

41.3

 

$

40.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EPS Impact

 

Q1

 

Q2

 

Q3

 

Year-to-Date

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Power

 

$

(0.05

)

$

0.01

 

$

0.05

 

$

0.01

 

Holdings

 

 

(0.02

)

 

0.05

 

 

0.12

 

 

0.15

 

 

 

Total

 

$

(0.07

)

$

0.06

 

$

0.17

 

$

0.16