8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) October 30, 2015

PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED

(Exact name of registrant as specified in its charter)

New Jersey	001-09120	22-2625848
(State or other jurisdiction of incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)

80 Park Plaza, P.O. Box 1171

Newark, New Jersey 07101-1171

(Address of principal executive offices) (Zip Code)

973-430-7000

(Registrant’s telephone number, including area code)

http://www.pseg.com

PUBLIC SERVICE ELECTRIC AND GAS COMPANY

(Exact name of registrant as specified in its charter)

New Jersey	001-00973	22-1212800
(State or other jurisdiction of incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)

80 Park Plaza, P.O. Box 570

Newark, New Jersey 07101-0570

(Address of principal executive offices) (Zip Code)

973-430-7000

(Registrant’s telephone number, including area code)

http://www.pseg.com

PSEG POWER LLC

(Exact name of registrant as specified in its charter)

Delaware	001-34232	22-3663480
(State or other jurisdiction of incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)

80 Park Plaza

Newark, New Jersey 07102-4194

(Address of principal executive offices) (Zip Code)

973-430-7000

(Registrant’s telephone number, including area code)

http://www.pseg.com

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

The information contained in Item 2.02. Results of Operations and Financial Condition in this Form 8-K is furnished solely for Public Service Enterprise Group Incorporated (PSEG). The information contained in Item 7.01 Regulation FD Disclosure in this combined Form 8-K is separately furnished, as noted, by PSEG, Public Service Electric and Gas Company (PSE&G) and PSEG Power LLC (Power). Information contained herein relating to any individual company is provided by such company on its own behalf and in connection with its respective Form 8-K. PSE&G and Power each makes representations only as to itself and makes no other representations whatsoever as to any other company. The materials furnished as Exhibits 99 and 99.1 are available on the pseg.com website under the investor tab, or at http://investor.pseg.com.

Item 2.02 Results of Operations and Financial Condition

PSEG

On October 30, 2015, PSEG announced unaudited financial results for the three months and nine months ended September 30, 2015. A copy of the earnings release dated October 30, 2015 is furnished as Exhibit 99 to this Form 8-K.

Item 7.01 Regulation FD Disclosure

PSEG, PSE&G and Power

On October 30, 2015, PSEG conducted an earnings call regarding its 2015 third quarter results. A copy of the slideshow presentation used during the earnings call is furnished as Exhibit 99.1 to this Form 8-K.

Item 9.01 Financial Statements and Exhibits

Exhibit 99	Press Release dated October 30, 2015
Exhibit 99.1	Slideshow Presentation

2

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. The signature of the undersigned company shall be deemed to relate only to matters having reference to such company and any subsidiaries thereof.

PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED
(Registrant)
By:	/s/ Stuart J. Black
	STUART J. BLACK
	Vice President and Controller
	(Principal Accounting Officer)

Date: October 30, 2015

3

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. The signature of the undersigned company shall be deemed to relate only to matters having reference to such company and any subsidiaries thereof.

PUBLIC SERVICE ELECTRIC AND GAS COMPANY
(Registrant)
By:	/s/ Stuart J. Black
	STUART J. BLACK
	Vice President and Controller
	(Principal Accounting Officer)

Date: October 30, 2015

4

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. The signature of the undersigned company shall be deemed to relate only to matters having reference to such company and any subsidiaries thereof.

PSEG POWER LLC
(Registrant)
By:	/s/ Stuart J. Black
	STUART J. BLACK
	Vice President and Controller
	(Principal Accounting Officer)

Date: October 30, 2015

5

EX-99

EXHIBIT 99

        Investor News NYSE: PEG

For further information, contact:

•    Kathleen A. Lally, Vice President – Investor Relations	Phone: 973-430-6565
•    Carlotta Chan, Manager - Investor Relations	Phone: 973-430-6596

PSEG ANNOUNCES 2015 THIRD QUARTER RESULTS

$0.87 PER SHARE NET INCOME

Operating Earnings of $0.80 Per Share

Company Updates Full Year Guidance to $2.85 - $2.95 Per Share

October 30, 2015 (Newark, NJ) (NYSE – PEG) Public Service Enterprise Group (PSEG) today reported third quarter 2015 Net Income of $439 million or $0.87 per share as compared to Net Income of $444 million or $0.87 per share for the third quarter of 2014. Operating earnings for the third quarter of 2015 were $403 million or $0.80 per share compared to the third quarter of 2014 operating earnings of $393 million or $0.77 per share.

Ralph Izzo, chairman, president and CEO, said “PSEG reported another good quarter. While the businesses benefited from favorable weather, our results also reflect the benefit from our strategy of increasing investment in infrastructure, a disciplined approach to cost management and the continued availability of low-cost gas supply. Based on our strong results, we are increasing the lower end of our operating earnings guidance yielding a range for the full year of $2.85 - $2.95 per share.”

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. Operating Earnings exclude the impact of gains/(losses) associated with Nuclear Decommissioning Trust (NDT), certain Mark-to-Market (MTM) accounting and other material one-time items. The table below provides a reconciliation of PSEG’s Net Income to Operating Earnings (a non-GAAP measure) for the third quarter. See Attachment 12 for a complete list of items excluded from Net Income in the determination of Operating Earnings.

PSEG CONSOLIDATED EARNINGS (unaudited)

Third Quarter Comparative Results

2015 and 2014

	Income				Diluted Earnings
	($ millions)				Per Share
	2015		2014		2015		2014
Operating Earnings	$	403	$	393	$	0.80	$	0.77
Reconciling Items		36		51		0.07		0.10
Net Income	$	439	$	444	$	0.87	$	0.87
Average Shares						508M		507M

“Our position of financial strength allows us to make significant investments in our businesses,” Izzo said. “Since the start of the year, our 5-year capital program has been increased by 20% to $15.6 billion. The increase in spending should produce double-digit growth in PSE&G’s rate base through 2019 from 2014 as we also enhance the competitive position of PSEG Power’s generating fleet with the addition of approximately 1300 MWs of new, efficient gas-fired combined cycle capacity. The investment program should assure customers receive clean, reliable delivery of electricity and natural gas as we also position PSEG to continue to deliver value for shareholders over the long-term.”

Our revised Operating Earnings guidance by company for the full year is as follows:

Operating Earnings

($ millions, except EPS)

	2015E	2014A
PSE&G	$785 - $805	$	725
PSEG Power	$620 - $650	$	642
PSEG Enterprise/Other	$40 - $45	$	33
Total	$1,445 - $1,500	$	1,400
Earnings Per Share	$2.85 - $2.95	$	2.76

Operating Earnings Review and Outlook by Operating Subsidiary

See Attachment 6 for detail regarding the quarter-over-quarter reconciliations for each of PSEG’s businesses.

PSE&G

PSE&G reported operating earnings of $222 million ($0.44 per share) for the third quarter of 2015 compared with operating earnings of $200 million ($0.39 per share) for the third quarter of 2014.

PSE&G’s earnings reflect the impact of warmer than normal weather, and an increase in revenue associated with an expanded capital program which more than offset a moderate increase in operating expenses.

Returns from PSE&G’s expanded investment in transmission added $0.03 per share to earnings in the quarter. Weather conditions, which were warmer than normal and warmer than the year ago period, improved quarter-over-quarter earnings by $0.02 per share. A slight increase in electric demand coupled with revenue recovery of infrastructure-related investment programs improved quarter-over-quarter earnings by $0.01 per share. An increase in pension expense led to a reduction in quarter-over-quarter earnings by $0.01 per share.

Electric sales grew 7% during the third quarter as residential customers responded to temperatures that were 38% higher than the levels experienced in the year-ago period and 19% higher than normal. On a weather-normalized basis, electric sales advanced 0.8% in the quarter resulting in weather-normalized electric sales growth of 0.4% for the nine months ended September.

In September 2015, the NJ Board of Public Utilities (BPU) approved PSE&G’s filing requesting a reduction of $70 million in annual Basic Gas Supply Service (BGSS) revenues. The change, which was effective on October 1, 2015, reduced the BGSS rate to 40 cents per therm from 45 cents per therm. Including this reduction in gas charges, the typical residential customer has experienced a 47%, or $792, decline in their annual gas bill since January 2009.

PSE&G, in September 2015, reached a settlement in principle with the Staff of the BPU and the NJ Division of Rate Counsel on the company’s Gas System Modernization Program (GSMP). The settlement provides for investing $905 million over a three year period beginning in 2016.

PSE&G filed an update of its Formula Rate for transmission at the Federal Energy Regulatory Commission in October 2015. The update, which reflects an increase in the level of PSE&G’s investment in transmission, would provide for approximately $146 million in increased annual transmission revenue effective January 1, 2016.

The forecast of PSE&G’s operating earnings for 2015 is now $785 - $805 million versus $760 - $775 million. Operating earnings for the full year are benefiting from the recovery of costs associated with higher levels of capital spending. The increase in the forecast is mostly due to warmer than normal weather.

PSEG Power

PSEG Power reported operating earnings of $170 million ($0.33 per share) for the third quarter of 2015 and Adjusted EBITDA of $401 million compared with operating earnings of $171 million ($0.34 per share) and Adjusted EBITDA of $386 million for the third quarter of 2014.

PSEG believes that the non-GAAP financial measure of “Adjusted EBITDA” is useful in evaluating Power’s operating performance because it provides investors with additional information to compare our business performance to other companies and to understand performance trends.

Adjusted EBITDA excludes the same items as our Operating Earnings measure as well as income tax expense and interest expense, depreciation and amortization and major maintenance at Power’s fossil generation facilities. See Attachment 12 for a complete list of items excluded from Net Income in the determination of Adjusted EBITDA.

Power’s results for the quarter reflect the impact of strong hedging, an increase in operation from the gas-fired combined cycle fleet and an improvement in spark spreads with the availability of low-cost gas supply which offset the anticipated effect of a decline in capacity prices.

Power retired approximately 1800 MWs in the second quarter of older, less efficient peaking capacity that didn’t meet NJ’s environmental standards. The loss of the revenue on this capacity reduced Power’s quarter-over-quarter earnings by $0.03 per share. This decline in earnings was offset by higher average prices received on energy hedges as well as an improvement in spark spreads. These two items combined to increase quarter-over-quarter earnings by $0.07 per share. An increase in O&M expenses reduced quarter-over-quarter earnings by $0.03 per share. The increase in operating expense primarily reflects differences in the timing of outages at PSEG Power’s nuclear facilities, and is not a reflection of a higher embedded level of expense. The absence of prior year tax benefits reduced quarter-over-quarter earnings by $0.02 per share.

Output during the quarter of 14.7 TWh was in line with year-ago levels. The fleet’s flexibility continues to be demonstrated as an improvement in output from the nuclear fleet and increased production from the gas-fired combined cycle fleet offset a decline in production from Power’s coal-fired stations.

The nuclear fleet operated at an average capacity factor of 95%, producing 7.8 TWh of output or 53% of Power’s generation, a 3% increase over year-ago levels. Performance of the nuclear facilities reflects the absence of repair work at Salem 2 in 2014 which was partially offset in the third quarter of 2015 by an early start to the refueling outage at Peach Bottom 3. Production from the gas-fired combined cycle fleet (CCGT) increased 7% to 5.4 TWh, or 36% of total generation, as the CCGT fleet operated at a 73% capacity factor during the quarter in response to improved spark spreads. Output of the CCGT fleet also benefited from the completion of up-rate work which added 94 MWs of efficient capacity at the Linden and Bergen Generating Stations over the past year. Higher summer demand also had a favorable impact on the dispatch of Power’s peaking capacity. Dispatch of the coal fleet was affected by a decline in the price of gas and lower wholesale energy prices.

Power’s fleet is expected to produce energy at the lower end of its forecast of output for 2015 of 55 – 57 TWh. Approximately

80% – 85% of anticipated production for the fourth quarter is hedged at an average price of $52 per MWh. For 2016, Power has hedged 65% - 70% of its forecast generation of 55 – 57 TWh at an average price of $51 per MWh; for 2017, Power has hedged

35% - 40% of its forecast generation of 55 – 57 TWh at an average price of $49 per MWh. The percent of energy hedged over 2016 – 2017 is consistent with – but, at the lower end of the range for Power’s prescribed ratable hedging policy.

PSEG Power cleared a new 540 MW CCGT at Sewaren as part of PJM’s Reliability Pricing Model Base Residual Auction. The plant, which represents an investment of $625 - $675 million, is targeted to be completed and supplying energy to New Jersey and the region by the summer of 2018.

The forecast range of Power’s operating earnings for 2015 is now $620 - $650 million versus $620 - $680 million. The forecast of operating earnings represents adjusted EBITDA for the full year of $1,545 - $1,595 million. Results for the year have been influenced by the expected decline in year-over-year capacity revenue, an increase in the average price of hedged energy and lower wholesale energy prices.

PSEG Enterprise/Other

PSEG Enterprise/Other reported operating earnings of $11 million ($0.03 per share) for the third quarter of 2015 compared with operating earnings of $22 million ($0.04 per share) for the third quarter of 2014. The decline in operating earnings reflects the absence of prior year tax benefits at PSEG Energy Holdings partially offset by lower operating and maintenance expense and higher interest income at Parent.

The forecast of PSEG Enterprise/Other full year operating earnings for 2015 remains $40 - $45 million.

FORWARD-LOOKING STATEMENT

Certain of the matters discussed in this report about our and our subsidiaries’ future performance, including, without limitation, future revenues, earnings, strategies, prospects, consequences and all other statements that are not purely historical constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ materially from those anticipated. Such statements are based on management’s beliefs as well as assumptions made by and information currently available to management. When used herein, the words “anticipate,” “intend,” “estimate,” “believe,” “expect,” “plan,” “should,” “hypothetical,” “potential,” “forecast,” “project,” variations of such words and similar expressions are intended to identify forward-looking statements. Factors that may cause actual results to differ are often presented with the forward-looking statements themselves. Other factors that could cause actual results to differ materially from those contemplated in any forward-looking statements made by us herein are discussed in filings we make with the United States Securities and Exchange Commission (SEC), including our Annual Report on Form 10-K and subsequent reports on Form 10-Q and Form 8-K and available on our website: http://www.pseg.com. These factors include, but are not limited to:

• adverse changes in the demand for or the price of the capacity and energy that we sell into wholesale electricity markets,

• adverse changes in energy industry law, policies and regulation, including market structures and transmission planning,

• any inability of our transmission and distribution businesses to obtain adequate and timely rate relief and regulatory approvals from federal and state regulators,

• changes in federal and state environmental regulations and enforcement that could increase our costs or limit our operations,

• changes in nuclear regulation and/or general developments in the nuclear power industry, including various impacts from any accidents or incidents experienced at our facilities or by others in the industry, that could limit operations of our nuclear generating units,

• actions or activities at one of our nuclear units located on a multi-unit site that might adversely affect our ability to continue to operate that unit or other units located at the same site,

• any inability to manage our energy obligations, available supply and risks,

• adverse outcomes of any legal, regulatory or other proceeding, settlement, investigation or claim applicable to us and/or the energy industry,

• any deterioration in our credit quality or the credit quality of our counterparties,

• availability of capital and credit at commercially reasonable terms and conditions and our ability to meet cash needs,

• changes in the cost of, or interruption in the supply of, fuel and other commodities necessary to the operation of our generating units,

• delays in receipt of necessary permits and approvals for our construction and development activities,

• delays or unforeseen cost escalations in our construction and development activities,

• any inability to achieve, or continue to sustain, our expected levels of operating performance,

• any equipment failures, accidents, severe weather events or other incidents that impact our ability to provide safe and reliable service to our customers, and any inability to obtain sufficient insurance coverage or recover proceeds of insurance with respect to such events,

• acts of terrorism, cybersecurity attacks or intrusions that could adversely impact our businesses,

• increases in competition in energy supply markets as well as for transmission projects,

• any inability to realize anticipated tax benefits or retain tax credits,

• challenges associated with recruitment and/or retention of a qualified workforce,

• adverse performance of our decommissioning and defined benefit plan trust fund investments and changes in funding requirements,

• changes in technology, such as distributed generation and micro grids, and greater reliance on these technologies, and

• changes in customer behaviors, including increases in energy efficiency, net-metering and demand response.

All of the forward-looking statements made in this report are qualified by these cautionary statements and we cannot assure you that the results or developments anticipated by management will be realized or even if realized, will have the expected consequences to, or effects on, us or our business prospects, financial condition or results of operations. Readers are cautioned not to place undue reliance on these forward-looking statements in making any investment decision. Forward-looking statements made in this report apply only as of the date of this report. While we may elect to update forward-looking statements from time to time, we specifically disclaim any obligation to do so, even if internal estimates change, unless otherwise required by applicable securities laws.

The forward-looking statements contained in this report are intended to qualify for the safe harbor provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.

Attachment 1

PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED

Operating Earnings and Per Share Results by Subsidiary

(Unaudited)

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2015		2014		2015		2014
Earnings Results ($ Millions)
PSE&G	$	222	$	200	$	631	$	565
PSEG Power		170		171		558		551
PSEG Enterprise/Other		11		22		32		37
Operating Earnings	$	403	$	393	$	1,221	$	1,153
Reconciling Items(a)		36		51		149		(111	)
Net Income	$	439	$	444	$	1,370	$	1,042
Fully Diluted Average Shares Outstanding (in Millions)		508		507		508		507
Per Share Results (Diluted)
PSE&G	$	0.44	$	0.39	$	1.24	$	1.11
PSEG Power		0.33		0.34		1.10		1.09
PSEG Enterprise/Other		0.03		0.04		0.07		0.07
Operating Earnings	$	0.80	$	0.77	$	2.41	$	2.27
Reconciling Items(a)		0.07		0.10		0.29		(0.22	)
Net Income	$	0.87	$	0.87	$	2.70	$	2.05

(a) See Attachment 12 for details of items excluded from Net Income to compute Operating Earnings.

Attachment 2

PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED

Consolidating Statements of Operations

(Unaudited, $ Millions)

	Three Months Ended September 30, 2015
	PSEG			PSEG Enterprise/ Other (a)			PSE&G			PSEG Power
OPERATING REVENUES	$	2,688		$	(174	)	$	1,766		$	1,096
OPERATING EXPENSES
Energy Costs		815			(292	)		740			367
Operation and Maintenance		746			92			391			263
Depreciation and Amortization		313			7			231			75
Total Operating Expenses		1,874			(193	)		1,362			705
OPERATING INCOME		814			19			404			391
Income from Equity Method Investments		3			—			—			3
Other Income and (Deductions)		33			—			22			11
Other-Than-Temporary Impairments		(30	)		—			—			(30	)
Interest Expense		(96	)		1			(67	)		(30	)
INCOME BEFORE INCOME TAXES		724			20			359			345
Income Tax Benefit (Expense)		(285	)		(9	)		(137	)		(139	)
NET INCOME	$	439		$	11		$	222		$	206
OPERATING EARNINGS	$	403		$	11		$	222		$	170
Reconciling Items Excluded from Net Income (b)		36			—			—			36
NET INCOME	$	439		$	11		$	222		$	206
	Three Months Ended September 30, 2014
	PSEG			PSEG Enterprise/ Other (a)			PSE&G			PSEG Power
OPERATING REVENUES	$	2,641		$	(152	)	$	1,655		$	1,138
OPERATING EXPENSES
Energy Costs		863			(277	)		668			472
Operation and Maintenance		714			106			366			242
Depreciation and Amortization		318			9			238			71
Total Operating Expenses		1,895			(162	)		1,272			785
OPERATING INCOME		746			10			383			353
Income from Equity Method Investments		3			(1	)		—			4
Other Income and (Deductions)		66			2			14			50
Other-Than-Temporary Impairments		(10	)		—			—			(10	)
Interest Expense		(100	)		2			(71	)		(31	)
INCOME BEFORE INCOME TAXES		705			13			326			366
Income Tax Benefit (Expense)		(261	)		9			(126	)		(144	)
NET INCOME	$	444		$	22		$	200		$	222
OPERATING EARNINGS	$	393		$	22		$	200		$	171
Reconciling Items Excluded from Net Income (b)		51			—			—			51
NET INCOME	$	444		$	22		$	200		$	222

(a) Includes activities at Energy Holdings, PSEG Long Island and the Parent as well as intercompany eliminations.

(b) See Attachment 12 for details of items excluded from Net Income to compute Operating Earnings.

Attachment 3

PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED

Consolidating Statements of Operations

(Unaudited, $ Millions)

	Nine Months Ended September 30, 2015
	PSEG			PSEG Enterprise/ Other (a)			PSE&G			PSEG Power
OPERATING REVENUES	$	8,137		$	(943	)	$	5,234		$	3,846
OPERATING EXPENSES
Energy Costs		2,577			(1,268	)		2,176			1,669
Operation and Maintenance		2,170			251			1,171			748
Depreciation and Amortization		960			22			712			226
Total Operating Expenses		5,707			(995	)		4,059			2,643
OPERATING INCOME		2,430			52			1,175			1,203
Income from Equity Method Investments		10			(1	)		—			11
Other Income and (Deductions)		135			1			57			77
Other-Than-Temporary Impairments		(45	)		—			—			(45	)
Interest Expense		(291	)		6			(203	)		(94	)
INCOME BEFORE INCOME TAXES		2,239			58			1,029			1,152
Income Tax Benefit (Expense)		(869	)		(26	)		(398	)		(445	)
NET INCOME	$	1,370		$	32		$	631		$	707
OPERATING EARNINGS	$	1,221		$	32		$	631		$	558
Reconciling Items Excluded from Net Income (b)		149			—			—			149
NET INCOME	$	1,370		$	32		$	631		$	707
	Nine Months Ended September 30, 2014
	PSEG			PSEG Enterprise/ Other (a)			PSE&G			PSEG Power
OPERATING REVENUES	$	8,113		$	(946	)	$	5,235		$	3,824
OPERATING EXPENSES
Energy Costs		3,008			(1,306	)		2,278			2,036
Operation and Maintenance		2,370			309			1,190			871
Depreciation and Amortization		919			22			682			215
Total Operating Expenses		6,297			(975	)		4,150			3,122
OPERATING INCOME		1,816			29			1,085			702
Income from Equity Method Investments		10			(1	)		—			11
Other Income and (Deductions)		154			3			41			110
Other-Than-Temporary Impairments		(14	)		—			—			(14	)
Interest Expense		(291	)		7			(206	)		(92	)
INCOME BEFORE INCOME TAXES		1,675			38			920			717
Income Tax Benefit (Expense)		(633	)		(1	)		(355	)		(277	)
NET INCOME	$	1,042		$	37		$	565		$	440
OPERATING EARNINGS	$	1,153		$	37		$	565		$	551
Reconciling Items Excluded from Net Income (b)		(111	)		—			—			(111	)
NET INCOME	$	1,042		$	37		$	565		$	440

(a) Includes activities at Energy Holdings, PSEG Long Island and the Parent as well as intercompany eliminations.

(b) See Attachment 12 for details of items excluded from Net Income to compute Operating Earnings.

Attachment 4

PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED

Capitalization Schedule

(Unaudited, $ Millions)

	September 30,			December 31,
	2015			2014
DEBT
Long-Term Debt	$	9,163		$	8,869
Securitization Debt		68			259
Project Level, Non-Recourse Debt		7			16
Total Debt		9,238			9,144
STOCKHOLDERS’ EQUITY
Common Stock		4,894			4,876
Treasury Stock		(667	)		(635	)
Retained Earnings		9,005			8,227
Accumulated Other Comprehensive Loss		(299	)		(283	)
Total Common Stockholders’ Equity		12,933			12,185
Noncontrolling Interests - Equity Investments		1			1
Total Equity		12,934			12,186
Total Capitalization	$	22,172		$	21,330

Attachment 5

PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited, $ Millions)

	Nine Months Ended September 30,
	2015			2014
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income	$	1,370		$	1,042
Adjustments to Reconcile Net Income to Net Cash Flows From Operating Activities		1,858			1,494
NET CASH PROVIDED BY OPERATING ACTIVITIES		3,228			2,536
NET CASH USED IN INVESTING ACTIVITIES		(2,841	)		(1,988	)
NET CASH USED IN FINANCING ACTIVITIES		(518	)		(338	)
Net Change in Cash and Cash Equivalents		(131	)		210
Cash and Cash Equivalents at Beginning of Period		402			493
Cash and Cash Equivalents at End of Period	$	271		$	703

Attachment 6

PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED

Quarter-over-Quarter EPS Reconciliation

September 30, 2015 vs. September 30, 2014

(Unaudited)

Attachment 7

PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED

Year-over-Year EPS Reconciliation

September 30, 2015 vs. September 30, 2014

(Unaudited)

Attachment 8

PUBLIC SERVICE ELECTRIC & GAS COMPANY

Retail Sales and Revenues

(Unaudited)

September 30, 2015

Electric Sales and Revenues

	Three Months		Change vs.			Nine Months		Change vs.
	Ended		2014			Ended		2014
Sales (millions kWh)
Residential		4,596		12.7	%		11,019		7.2	%
Commercial & Industrial		7,678		4.0	%		21,331		1.9	%
Street Lighting		69		-3.3	%		234		0.6	%
Interdepartmental		3		21.7	%		7		0.3	%
Total		12,346		7.1	%		32,591		3.7	%
Revenue ($ millions)
Residential	$	757		14.7	%	$	1,777		9.7	%
Commercial & Industrial		629		0.1	%		1,625		-0.5	%
Street Lighting		17		2.4	%		52		2.8	%
Other Operating Revenues*		158		16.7	%		458		19.3	%
Total	$	1,561		8.4	%	$	3,912		6.1	%
	Three Months		Change vs.			Nine Months		Change vs.
	Ended		2014			Ended		2014
Weather Data
THI Hours - Actual		13,896		37.8	%		18,710		38.4	%
THI Hours - Normal		11,679					15,752

* Primarily sales of Non-Utility Generator energy to PJM and Transmission related revenues.

Attachment 9

PUBLIC SERVICE ELECTRIC & GAS COMPANY

Retail Sales and Revenues

(Unaudited)

September 30, 2015

Gas Sold and Transported

	Three Months		Change vs.			Nine Months		Change vs.
	Ended		2014			Ended		2014
Sales (millions therms)*
Firm Sales
Residential Sales		96		-5.8	%		1,168		3.6	%
Commercial & Industrial		100		2.5	%		805		4.4	%
Total Firm Sales		196		-1.7	%		1,973		3.9	%
Non-Firm Sales
Commercial & Industrial		670		-6.0	%		1,625		-11.1	%
Total Non-Firm Sales		670					1,625
Total Sales		866		-5.0	%		3,598		-3.5	%
Revenue ($ millions)
Residential Sales - Firm	$	39		-19.1	%	$	224		-45.2	%
Commercial & Industrial - Firm Sales		15		-25.8	%		197		-16.0	%
Non-Firm Sales		9		26.1	%		28		-11.6	%
Other Operating Revenues**		42		3.6	%		129		0.8	%
Total	$	105		-9.4	%	$	578		-28.0	%
Gas Transported	$	100		1.3	%	$	744		0.0	%
	Three Months		Change vs.			Nine Months		Change vs.
	Ended		2014			Ended		2014
Weather Data
Degree Days - Actual		1		-96.1	%		3,557		2.5	%
Degree Days - Normal		29					3,039

* CSG rate included in non-firm sales

** Primarily Appliance Service.

Attachment 10

PSEG POWER LLC

Generation Measures*

(Unaudited)

	GWhr Breakdown						GWhr Breakdown
	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2015			2014			2015			2014
Nuclear - NJ		5,393			5,113			15,249			14,653
Nuclear - PA		2,394			2,452			7,499			7,499
Total Nuclear		7,787			7,565			22,748			22,152
Fossil - Coal/Natural Gas - NJ**		72			563			542			1,441
Fossil - Coal - PA		1,108			1,221			3,853			3,945
Fossil - Coal - CT		12			47			600			710
Total Coal		1,192			1,831			4,995			6,096
Fossil - Oil & Natural Gas - NJ		4,160			3,767			10,932			9,419
Fossil - Oil & Natural Gas - NY		1,547			1,523			3,691			3,398
Fossil - Oil & Natural Gas - CT		32			4			122			241
Total Oil & Natural Gas		5,739			5,294			14,745			13,058
		14,718			14,690			42,488			41,306
	% Generation by Fuel Type						% Generation by Fuel Type
	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2015			2014			2015			2014
Nuclear - NJ		37	%		35	%		36	%		35	%
Nuclear - PA		16	%		16	%		18	%		18	%
Total Nuclear		53	%		51	%		54	%		53	%
Fossil - Coal/Natural Gas - NJ**		0	%		4	%		1	%		3	%
Fossil - Coal - PA		8	%		9	%		9	%		10	%
Fossil - Coal - CT		0	%		0	%		1	%		2	%
Total Coal		8	%		13	%		11	%		15	%
Fossil - Oil & Natural Gas - NJ		28	%		26	%		26	%		23	%
Fossil - Oil & Natural Gas - NY		11	%		10	%		9	%		8	%
Fossil - Oil & Natural Gas - CT		0	%		0	%		0	%		1	%
Total Oil & Natural Gas		39	%		36	%		35	%		32	%
		100	%		100	%		100	%		100	%

* Excludes Solar and Kalaeloa

** Includes Pumped Storage. Pumped Storage accounted for <1% of total generation for the three and nine months ended September 30, 2015 and 2014. Generation includes natural gas fuel switching intervals.

Attachment 11

PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED

Statistical Measures

(Unaudited)

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2015			2014			2015			2014
Weighted Average Common Shares Outstanding (millions)
Basic		505			506			505			506
Diluted		508			507			508			507
Stock Price at End of Period							$	42.16		$	37.24
Dividends Paid per Share of Common Stock	$	0.39		$	0.37		$	1.17		$	1.11
Dividend Payout Ratio*								53.8	%		53.6	%
Dividend Yield								3.7	%		4.0	%
Price/Earnings Ratio*								14.5			13.5
Rate of Return on Average Common Equity*								11.8	%		12.0	%
Book Value per Common Share							$	25.90		$	23.89
Market Price as a Percent of Book Value								165	%		156	%
Total Shareholder Return		8.4	%		-7.8	%		4.9	%		19.8	%

* Calculation based on Operating Earnings for the 12 month period ended.

Attachment 12

PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED

Consolidated Operating Earnings Reconciliation

	Three Months Ended						Nine Months Ended						Year Ended
	September 30,						September 30,						December 31,
Reconciling Items, net of tax	2015			2014			2015			2014			2014			2013
	($ Millions, Unaudited)
Operating Earnings	$	403		$	393		$	1,221		$	1,153		$	1,400		$	1,309
Gain (Loss) on Nuclear Decommissioning Trust (NDT) Fund Related Activity (PSEG Power)		(14	)		17			(11	)		40			68			40
Gain (Loss) on Mark-to-Market (MTM)(a) (PSEG Power)		50			36			58			(138	)		66			(74	)
Storm O&M, net of insurance recoveries (PSEG Power)		—			(2	)		102			(13	)		(16	)		(32	)
Net Income	$	439		$	444		$	1,370		$	1,042		$	1,518		$	1,243
Fully Diluted Average Shares Outstanding (in Millions)		508			507			508			507			508			508
	($ Per Share Impact - Diluted, Unaudited)
Operating Earnings	$	0.80		$	0.77		$	2.41		$	2.27		$	2.76		$	2.58
Gain (Loss) on NDT Fund Related Activity (PSEG Power)		(0.02	)		0.04			(0.02	)		0.08			0.13			0.08
Gain (Loss) on MTM(a) (PSEG Power)		0.09			0.07			0.11			(0.27	)		0.13			(0.14	)
Storm O&M, net of insurance recoveries (PSEG Power)		—			(0.01	)		0.20			(0.03	)		(0.03	)		(0.07	)
Net Income	$	0.87		$	0.87		$	2.70		$	2.05		$	2.99		$	2.45

(a) Includes the financial impact from positions with forward delivery months.

PSEG Power Adjusted EBITDA Reconciliation

	Three Months Ended						Nine Months Ended						Year Ended
	September 30,						September 30,						December 31,
Reconciling Items	2015			2014			2015			2014			2014
	($ Millions, Unaudited)
Adjusted EBITDA	$	401		$	386		$	1,328		$	1,313		$	1,584
Fossil Major Maintenance, pre-tax		(10	)		(10	)		(111	)		(117	)		(144	)
Depreciation and Amortization, pre-tax (b)		(76	)		(71	)		(228	)		(217	)		(291	)
Interest Expense, pre-tax (b)		(30	)		(31	)		(93	)		(91	)		(120	)
Income Taxes (b)		(115	)		(103	)		(338	)		(337	)		(387	)
Operating Earnings	$	170		$	171		$	558		$	551		$	642
Gain (Loss) on NDT Fund Related Activity, pre-tax		(24	)		36			(14	)		85			138
Gain (Loss) on MTM, pre-tax (a)		84			60			98			(233	)		111
Storm O&M, net of insurance recoveries, pre-tax		—			(4	)		172			(23	)		(27	)
Income Taxes related to Operating Earnings reconciling items		(24	)		(41	)		(107	)		60			(104	)
Net Income	$	206		$	222		$	707		$	440		$	760

(a) Includes the financial impact from positions with forward delivery months.

(b) Excludes amounts related to Operating Earnings reconciling items.

EX-99.1

Public Service Enterprise Group

PSEG Earnings Conference Call

3rd Quarter 2015

October 30, 2015

EXHIBIT 99.1

1

Forward-Looking Statement

•

adverse changes in the demand for or the price of the capacity and energy that we sell into wholesale electricity markets,

•

adverse changes in energy industry law, policies and regulation, including market structures and transmission planning,

•

any inability of our transmission and distribution businesses to obtain adequate and timely rate relief and regulatory approvals from federal and state regulators,

•

changes in federal and state environmental regulations and enforcement that could increase our costs or limit our operations,

•

changes in nuclear regulation and/or general developments in the nuclear power industry, including various impacts from any accidents or incidents experienced at our facilities or by

others in the industry, that could limit operations of our nuclear generating units,

•

actions or activities at one of our nuclear units located on a multi-unit site that might adversely affect our ability to continue to operate that unit or other units located at the same site,

•

any inability to manage our energy obligations, available supply and risks,

•

any deterioration in our credit quality or the credit quality of our counterparties,

•

availability of capital and credit at commercially reasonable terms and conditions and our ability to meet cash needs,

•

changes in the cost of, or interruption in the supply of, fuel and other commodities necessary to the operation of our generating units,

•

delays in receipt of necessary permits and approvals for our construction and development activities,

•

delays or unforeseen cost escalations in our construction and development activities,

•

any inability to achieve, or continue to sustain, our expected levels of operating performance,

•

any equipment failures, accidents, severe weather events or other incidents that impact our ability to provide safe and reliable service to our customers, and any inability to obtain

sufficient insurance coverage or recover proceeds of insurance with respect to such events,

•

acts of terrorism, cybersecurity attacks or intrusions that could adversely impact our businesses,

•

increases in competition in energy supply markets as well as for transmission projects,

•

any inability to realize anticipated tax benefits or retain tax credits,

•

challenges associated with recruitment and/or retention of a qualified workforce,

•

adverse performance of our decommissioning and defined benefit plan trust fund investments and changes in funding requirements,

•

changes in technology, such as distributed generation and micro grids, and greater reliance on these technologies, and

•

changes in customer behaviors, including increases in energy efficiency, net-metering and demand response.

adverse outcomes of any legal, regulatory or other proceeding, settlement, investigation or claim applicable to us and/or the energy industry,

Certain of the matters discussed in this report about our and our subsidiaries' future performance, including, without limitation, future revenues, earnings, strategies, prospects,

consequences and all other statements that are not purely historical constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995.

Such forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ materially from those anticipated. Such statements are based on

management's beliefs as well as assumptions made by and information currently available to management. When used herein, the words “anticipate,” “intend,” “estimate,” “believe,”

“expect,” “plan,” “should,” “hypothetical,” “potential,” “forecast,” “project,” variations of such words and similar expressions are intended to identify forward-looking statements. Factors

that may cause actual results to differ are often presented with the forward-looking statements themselves. Other factors that could cause actual results to differ materially from those

contemplated in any forward-looking statements made by us herein are discussed in filings we make with the United States Securities and Exchange Commission (SEC), including our 

Annual Report on Form 10-K and subsequent reports on Form 10-Q and Form 8-K and available on our website: http://www.pseg.com. These factors include, but are not limited to:

All of the forward-looking statements made in this report are qualified by these cautionary statements and we cannot assure you that the results or developments anticipated by

management will be realized or even if realized, will have the expected consequences to, or effects on, us or our business prospects, financial condition or results of operations. Readers

are cautioned not to place undue reliance on these forward-looking statements in making any investment decision. Forward-looking statements made in this report apply only as of the

date of this report. While we may elect to update forward-looking statements from time to time, we specifically disclaim any obligation to do so, even if internal estimates change, unless 

otherwise required by applicable securities laws.

The forward-looking statements contained in this report are intended to qualify for the safe harbor provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of

the Securities Exchange Act of 1934, as amended. 

2

GAAP Disclaimer

These materials and other financial releases can be found on the pseg.com website under the investor tab,

or at http://investor.pseg.com/

PSEG presents Operating Earnings and Adjusted Earnings Before Interest, Taxes, Depreciation and

Amortization (EBITDA) in addition to its Net Income reported in accordance with accounting principles

generally accepted in the United States (GAAP). Operating Earnings and Adjusted EBITDA are non-

GAAP financial measures that differ from Net Income. Operating Earnings exclude gains or losses

associated with Nuclear Decommissioning Trust (NDT), Mark-to-Market (MTM) accounting, and other

material one-time items. PSEG presents Operating Earnings because management believes that it is

appropriate for investors to consider results excluding these items in addition to the results reported in

accordance with GAAP. 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. 

PSEG is presenting Adjusted EBITDA because it provides investors with additional information to

compare our business performance to other companies and understand performance trends. Adjusted

EBITDA excludes the same items as our Operating Earnings measure as well as income tax expense,

interest expense, depreciation and amortization and major maintenance expense costs at Power’s fossil

generation facilities. This information is not intended to be viewed as an alternative to GAAP information.

The last two slides in this presentation (Slides A and B) include a list of items excluded from Net Income

to reconcile to Operating Earnings and Adjusted EBITDA with a reference to that slide included on each

of the slides where the non-GAAP information appears.

PSEG

2015 Q3 Review

Ralph Izzo

Chairman, President and Chief Executive Officer

4

Q3 Earnings Summary –

Successful Quarter

$ millions (except EPS)

2015

2014

Operating Earnings

$  403

$  393

Reconciling Items, Net of Tax

36

51

Net Income

$  439

$  444

EPS from Operating Earnings*

$  0.80

$  0.77

Quarter ended September 30         

* See Slide A for Items excluded from Net Income to reconcile to Operating Earnings.

5

Year to Date Earnings Summary –

Strong Growth

$ millions (except EPS)

2015

2014

Operating Earnings

$  1,221

$  1,153

Reconciling Items, Net of Tax

149

(111)

Net Income

$  1,370

$  1,042

EPS from Operating Earnings*

$  2.41

$  2.27

Nine months ended September 30         

* See Slide A for Items excluded from Net Income to reconcile to Operating Earnings.

6

PSEG –

Q3 2015 Highlights

Operating Earnings of $0.80 vs. $0.77 per share in Q3 2014

Solid results driven by PSE&G’s continuing investment in transmission, weather,

and Power’s strong hedging and plant operations

Updating

full-year

operating

earnings

guidance

to

$2.85

-

$2.95

per

share

Executing on operational goals

Continued control of O&M supports full-year expectations

Nuclear operated at a 95% capacity factor; CCGTs operated at 73% capacity factor

PSEG’s 5-Year Capital Spending program increased 20%

Agreement reached on GSMP settlement provides for $905 million over 3 years

Power announced $1.5 billion investment in ~1,300 MWs of new CCGT capacity

Market developments

Constructive regulatory environment

PJM Capacity Performance

FERC NOPR on price formation

Reliability One award recognizes PSE&G as the most reliable electric utility in

the Mid-Atlantic Region for the 14 

year in a row

th

7

$2.85 -

$2.95E

$2.58

* See

Slide

A

for

Items

excluded

from

Net

Income

to

reconcile

to

Operating

Earnings.

E

=

Estimate.                               

$2.76

Full-year 2015 guidance update reflects the strength of operating results for the

first nine months of the year, and assumes normal weather and unit operations

PSEG –

Updating Full-Year 2015 Operating Earnings Guidance

2013 Operating Earnings*

2014 Operating Earnings*

2015 Operating Earnings Guidance

PSEG

2015 Q3 Operating Company Review

Daniel Cregg

EVP and Chief Financial Officer

9

Q3 Operating Earnings by Subsidiary

Operating Earnings

Earnings per Share

$ millions (except EPS)

2015

2014

2015

2014

PSE&G

$  222

$  200

$  0.44

$  0.39

PSEG Power

170

171

0.33

0.34

PSEG Enterprise/Other

11

22

0.03 

0.04 

Operating Earnings*

$  403

$  393

$ 0.80

$ 0.77

Quarter ended September 30

* See Slide A for Items excluded from Net Income to reconcile to Operating Earnings.

10

PSEG EPS Reconciliation –

Q3 2015 versus Q3 2014

Re-Contracting

& Lower

Cost to Serve  0.07

Capacity  (0.03)

O&M  (0.03)

Taxes &

Other  (0.02)

Transmission

0.03

Weather  0.02

Electric Demand

& Other Revenue

0.01

Pension and

Other O&M  (0.01)

Q3 2015      

Operating

Earnings*

Q3 2014       

Operating

Earnings*

PSEG Power

PSE&G

Enterprise/

Other

* See Slide A for Items excluded from Net Income to reconcile to Operating Earnings.

Absence of Tax

Settlement

Revenue growth supported EPS increase

$0.77

0.05

$0.80

(0.01)

(0.01)

0.00

0.25

0.50

0.75

1.00

11

Year to Date Operating Earnings by Subsidiary

Operating Earnings

Earnings per Share

$ millions (except EPS)

2015

2014

2015

2014

PSE&G

$  631

$  565

$  1.24

$  1.11

PSEG Power

558

551

1.10

1.09

PSEG Enterprise/Other

32

37

0.07

0.07

Operating Earnings*

$  1,221

$  1,153

$  2.41

$  2.27

Nine months ended September 30

•See Slide A for Items excluded from Net Income to reconcile to Operating Earnings.

12

PSEG EPS Reconciliation –

YTD 2015 versus YTD 2014

*

See Slide A for Items excluded from Net Income to reconcile to Operating Earnings.

**

Prior quarter results for reconciling items may not add to year-to-date (YTD) totals due to rounding.

Revenue growth supported EPS increase

$2.27

0.13

0.01

$2.41

0.00

0.50

1.00

1.50

2.00

2.50

YTD 2015       

Operating

Earnings*

YTD 2014       

Operating

Earnings*

Re-Contracting,

Market Pricing,

and Lower Cost

to Serve  0.22

Gas Send Out

and Fixed Cost

Recovery  0.04

Higher Volume  0.02

Capacity  (0.21)

O&M  (0.05)

D&A  (0.01)

PSEG Power**

Transmission  0.10

Electric Volume,

Weather, Demand and

Other Revenue  0.05

Gas Volume

and Demand 0.02

Pension and

Other O&M  (0.03)

Taxes &

Other  (0.01)

PSE&G

**

PSE&G

2015 Q3 Review

14

PSE&G –

Q3 Earnings Summary

$ millions (except EPS)

Q3 2015

Q3 2014

Variance

Operating Revenues

$  1,766

$  1,655

$  111

Operating Expenses

Energy Costs

740

668

72

Operation & Maintenance

391

366

25

Depreciation & Amortization

231

238

(7)

Total Operating Expenses

1,362

1,272

90

Operating Earnings / Net Income

$  222

$  200

22

EPS from Operating Earnings

$  0.44

$  0.39

$  0.05

15

$0.39

0.04

0.02

$0.44

(0.01)

0.00

0.10

0.20

0.30

0.40

0.50

PSE&G EPS Reconciliation –

Q3 2015

versus Q3 2014

Q3 2015      

Operating

Earnings

Q3 2014    

Operating

Earnings

Transmission 0.03

Electric Demand

& Other

Revenue  0.01

Pension and

Other

O&M

Weather

Continued reliability investments are a driver of growth

16

5,548

5,106

3,242

4,587

3,397

2,101

5,253

4,540

1,886

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

July

August

September

PSE&G –

Monthly Summer Weather Data

2015

vs.

2014

vs.

Normal

PSE&G

Monthly

Temperature

Humidity

Index

(THI)

+37.8% Q3 2015 vs. Q3 2014

+19% Q3 2015 vs. Normal

2015

2014

Normal

17

PSE&G –

Q3 Operating Highlights

GSMP settlement reached with BPU Staff and Division of Rate Counsel to invest $905 million

over 3 years to replace and modernize PSE&G’s gas distribution system starting in 2016

Energy Strong investments continuing: Gas mains replacement prioritized

2016 FERC Formula Rate filing submitted for ~$146 million in increased annual transmission revenue

PSE&G lowered gas rates by $70 million on October 1; Since January 2009, the average residential gas

customer has seen annual gas bills decline by 47%, or $792

Updating

PSE&G

operating

earnings

guidance

to

$785

-

$805

million,

up

from

$760

-

$775

million

on

recovery of costs related to higher levels of capital spend, and weather

PSE&G earned its authorized return

Capital investment of ~$2 billion through September 30, as part of $2.9 billion planned for the full year

Operations

Regulatory and Market

Environment

Financial

Growth in transmission revenues added $0.03 per share over Q3 2014

Q3 electric sales up 7% on weather that was 38% warmer than Q3 2014 and 19% warmer than normal;

Summer

2015

was

PSE&G’s

5

th

warmest

on

record

Weather normalized electric sales advanced 0.8% in Q3 and 0.4% for the YTD period

O&M remains under control

PSEG Power

2015 Q3 Review

19

PSEG Power –

Q3 Earnings Summary

$ millions (except EPS)

Q3 2015

Q3 2014

Variance

Operating Revenues

$  1,096

$  1,138

$  (42)

Operating Earnings

170

171

(1)

Reconciling Items, Net of Tax**

36

51

(15)

Net Income

206

222

(16)

EPS from Operating Earnings*

$  0.33

$  0.34

$  (0.01)

* See Slide A for Items excluded from Net Income to reconcile to Operating Earnings.

**Includes the financial impact from positions with forward delivery months.

20

$0.34

0.04

(0.03)

$0.33

(0.02)

0.00

0.10

0.20

0.30

0.40

0.50

Re-Contracting

and Lower Cost

to Serve  0.07

Capacity  (0.03)

PSEG Power EPS Reconciliation –

Q3 2015 versus Q3 2014

Q3 2015      

Operating

Earnings*

Q3 2014       

Operating

Earnings*

O&M

* See Slide A for Items excluded from Income from Net Income to reconcile to Operating Earnings.

Taxes

and

Other

PSEG

Power’s

Adjusted

EBITDA

–

Q3

2015,

Year-to-Date

and Full-Year 2015 Guidance

Three

Months

Ended September 30,

Nine Months (YTD)

Ended September 30,

Full-Year 2015

Guidance

($ in millions)

2015

2014

2015

2014

Low

High

Operating Earnings**

$170

$171

$558

$551

$620

$650

Add:

Fossil Major Maintenance, pre-tax

10

10

111

117

115

115

Depreciation & Amortization, pre-tax

76

71

228

217

305

305

Interest Expense, pre-tax

30

31

93

91

125

125

Income Taxes

115

103

338

337

380

400

Adjusted EBITDA

$401

$386

$1,328

$1,313

$1,545E

$1,595E

21

PSEG Power –

Adjusted EBITDA*

*    See Slide B for a reconciliation of Adjusted EBITDA to Operating Earnings and Net Income.   E = Estimate.

**  See Slide A for Items excluded from Net Income to reconcile to Operating Earnings; Includes the financial impact from Mark-to-Market positions with forward delivery months.

22

PSEG Power –

Generation Measures

7,565

7,787

1,831

1,192

5,294

5,739

0

7,500

15,000

2014

2015

Quarter ended September 30

Total Nuclear

Total Coal*

Oil & Natural Gas

* Includes figures for Pumped Storage. Includes Hudson and Mercer when run on gas.

PSEG Power –

Generation (GWh)

14,690

14,718

Quarter ended September 30

PSEG Power –

Capacity Factors (%)

2014

2015

Combined

Cycle

PJM and NY

67.5%

73.4%

Coal

NJ (Coal/Gas)

21.5%

3.7%

PA

71.8%

65.1%

CT

5.3%

1.3%

Nuclear

92.0%

95.4%

23

PSEG Power –

Generation Measures

22,152

22,748

6,096

4,995

13,058

14,745

0

15,000

30,000

45,000

2014

2015

Nine Months ended September 30

* Includes figures for Pumped Storage.  Includes Hudson and Mercer when run on gas. 

PSEG Power –

Generation (GWh)

41,306

42,488

Nine Months ended September 30

PSEG Power –

Capacity Factors (%)

2014

2015

Combined Cycle

PJM and NY

54.7%

64.1%

Coal*

NJ (Coal/Gas)

18.6%

7.5%

PA

78.1%

76.3%

CT

27.1%

22.9%

Nuclear

90.8%

92.2%

Total Nuclear

Total Coal*

Oil & Natural Gas

24

PSEG Power –

Fuel Costs

Quarter ended

September 30

($ millions)

2014

2015

Coal

42

27

Oil & Gas

140

94

Total Fossil

182

121

Nuclear

53

56

Total Fuel Cost

235

177

Total Generation

(GWh)

14,690

14,718

$ / MWh

16

12

PSEG Power –

Fuel Costs

Nine months ended

September 30

($ millions)

2014

2015

Coal

170

139

Oil & Gas

623

423

Total Fossil

793

562

Nuclear

162

162

Total Fuel Cost

955

724

Total Generation

(GWh)

41,306

42,488

$ / MWh

23

17

25

PSEG Power –

Gross Margin Performance

Capacity pricing of $168/MW-day similar to Q3 2014 on lower megawatts

from HEDD retirements 

Marcellus production and lack of take away capacity dampened local

natural gas and power prices during a warmer-than-normal summer

Spark spreads improved

Regional Performance

Region

Q3 2015 

Gross

Margin ($M)

2015 Performance

PJM

$573

Re-contracting, higher hedge prices

and lower fuel costs offset the

decline in capacity payments from

lower MWs and lower energy prices

New

England

$17

Lower volumes and lower prices

New York

$29

Higher volume offset lower prices

$0

$30

$60

2013

2014

2015

PSEG Power Gross Margin ($/MWh)

$42

$51

$40

Quarter ended

September 30

$0

$30

$60

2013

2014

2015

Nine months ended

September 30

$43

$47

$44

Developing 1,300 MW of new, efficient CCGT capacity in PJM

26

•

Construction of 755 MW Keys Energy Center

to begin this Fall on a new, natural gas fired

power plant in Maryland (SWMAAC*) at

an estimated cost of $825 to $875 million

•

Power cleared a new 540 MW CCGT unit,

Sewaren 7 located in New Jersey (EMAAC*),

in the recent 2018/2019 RPM auction;

the new unit is expected to cost $625 to $675

million and will replace

the older Sewaren

units upon completion

•

Both Keys and Sewaren 7 are targeted to be

in-service in 2018

*SWMAAC = SOUTHWEST/EMAAC = EASTERN MID-ATLANTIC AREA COUNCIL LOCATIONAL DELIVERABILITY AREA WITHIN PJM.

SEWAREN 7 SITE

KEYS ENERGY

CENTER SITE

27

Hedging Update…

Contracted Energy*

Volume TWh

9

36

36

Base Load

% Hedged

100%

100%

55-60%

(Nuclear and Base Load Coal)

Price $/MWh

$52

$51

$49

Volume TWh

4

19

19

Intermediate Coal, Combined

% Hedged

35-40%

0%

0%

Cycle, Peaking

Price $/MWh

$52

-

-

Volume TWh

12**

55-57

55-57

Total

% Hedged

80-85%

65-70%

35-40%

Price $/MWh

$52

$51

$49

Oct-Dec

2015

2016

2017

* Hedge percentages and prices as of September 30, 2015.  Revenues of full requirement load deals based on contract price, including renewable energy credits, ancillary, and transmission

   components but excluding capacity.  Hedges include positions with MTM accounting treatment and options.    **Volumes reflect rounding.

PJM Capacity Market Pricing

RPM –

Auction Results

Delivery Year

2015 / 2016*

2016 / 2017*+

2017 / 2018+

2018 / 2019

Power’s Average

Prices*($/MW-day)

$168

$172

$177

$215

RTO Prices

($/MW-day)

$136

$59

$120

$165/$150

(CP/Base)

Power’s Cleared

Capacity (MW)

8,750

8,700

8,700

8,650

PJM Capacity Revenues

($ Millions)

Calendar Year

2016

2017

2018

Through 5/31/19

Capacity Revenues

$542

$555

$631

$281

*PSEG POWER’S AVERAGE PRICES AND CLEARED CAPACITY (MW) REFLECT BASE AND INCREMENTAL AUCTIONS.

DELIVERY YEAR RUNS FROM JUNE 1 TO MAY 31 OF THE NEXT CALENDAR YEAR.

+ INCLUDES RESULTS OF CP TRANSITION AUCTIONS FOR ‘16/’17 AND ‘17/’18 AS OF SEPTEMBER 10, 2015.

2018/2019 RPM Auction Highlights

•   Cleared new 540 MW Sewaren 7 CCGT

•   EMAAC separated

•   CP reflects cost to meet new performance obligation

•   CP construct favors portfolio approach

~98% of Power’s PJM fleet that cleared the 2018/2019 RPM auction met the new CP standards

28

Regulatory and Market

Environment

Capacity Performance auction results and FERC NOPRs continue to be supportive

of price formation

Supreme Court review of Demand Response (DR) and Maryland subsidized generation

Power’s average hedge price for 2015 is $52/MWh vs. $48/MWh for 2014

29

PSEG Power –

Q3 Operating Highlights

CCGT capacity factor of 73% in Q3, YTD CCGT capacity factor of 64%

Nuclear capacity factor of 95% in Q3, YTD nuclear capacity factor of 92%

Salem 2 refueling underway; Peach Bottom 3 refueling and uprate began late September

Q3 output flat vs. Q3 2014, YTD output up 3% from higher nuclear and CCGT performance

Operations

Power to construct a new, $625 -

$675 million 540 MW CCGT at Sewaren that cleared

the 2018/2019 RPM auction

Updating

Power’s

full-year

2015

operating

earnings

guidance

to

$620

-

$650

million,

from

$620

-

$680

million;

Adjusted

2015

EBITDA

guidance

also

updated

to

$1.545

-

$1.595

billion

Power’s total debt as a percentage of capital at September 30 was 30%

Financial

PSEG

PSEG Financial Highlights

Updating 2015 operating earnings guidance to $2.85 -

$2.95 per share

Focused on maintaining operating efficiency and customer reliability

PSE&G’s

2015

operating

earnings

guidance

increased

to

$785

-

$805

million

versus 2014 operating earnings of $725 million

Power’s

2015

operating

earnings

guidance

revised

to

$620

-

$650

million,

versus

2014 operating earnings of $642 million

PSE&G reached a settlement with BPU Staff and Division of Rate Counsel

to invest $905 million over 3 years in its Gas System Modernization Program

Financial position remains strong

At September 30: Consolidated PSEG debt stood at 42% of capital; Power debt

was 30% of capital

Long history of returning cash to the shareholder through the common

dividend, with opportunity for future growth

31

Robust pipeline of investment opportunities

32

2010 –

2014: $12.6 Billion

PSEG’s Current 5-Year Capital Spending Program

24% Higher than Prior Period

*INCLUDES ALL PLANNED SPENDING. **ENERGY STRONG EXCLUDES RISK AND CONTINGENCY. ***POWER CAPITAL SPENDING EXCLUDES

NUCLEAR FUEL.  ****INCLUDES PENNEAST PIPELINE EQUITY INVESTMENT OF $0.1B.  E=ESTIMATE.  DATA AS OF OCTOBER 30, 2015.

2015E -

2019E*: $15.6 Billion

Power Total***

$2.7B

PSE&G Total

$9.8B

PSE&G Total

$11.8B

Power Total***

$3.6B

PSEG 2015 Updated Guidance for Operating Income

–

by Subsidiary and PSEG Power Adjusted EBITDA

$ millions (except EPS)

2015E

2014

PSE&G

$785 -

$805

$725

PSEG Power

$620 -

$650

$642

PSEG Enterprise/Other

$40 -

$45

$33

Operating Earnings*

$1,445 -

$1,500

$1,400

Earnings per Share

$2.85 -

$2.95E

$2.76

Anticipates Another Year of Growth in Operating Earnings

$ millions (except EPS)

2015E

2014

PSEG Power

$1,545 -

$1,595

$1,584

*   See Slide A for Items excluded from Net Income to reconcile to Operating Earnings; Includes the financial impact from Mark-to-Market positions with forward delivery months.

**  See Slide B for a reconciliation of Adjusted EBITDA to Operating Earnings and Net Income.   E = Estimate.

PSEG Power Adjusted EBITDA**

33

PSEG Liquidity as of September 30, 2015

34

Expiration

Total

Available

Company

Facility

Date

Facility

Usage

Liquidity

($Millions)

PSE&G

5-year Credit Facility

Apr-20

$600

(A )

$34

$566

PSEG Money Pool

5-Year Credit Facility (Power)

Apr-19

$1,600

$201

$1,399

5-Year Credit Facility (Power)

Apr-20

$1,000

(B)

$14

$986

5-year Credit Facility (PSEG)

Apr-19

$500

$10

$490

5-year Credit Facility (PSEG)

Apr-20

$500

(C)

$0

$500

Total Money Pool

$3,600

$225

$3,375

Total

$4,200

$259

$3,941

$227

(A) PSE&G facility will be reduced by $29 million in April 2016,and $14 million in March 2018.

PSE&G ST Investment

$0

(B) Power facility will be reduced by $48 million in April 2016, and $24 million in March 2018.

Total Liquidity Available

$4,168

(C) PSEG facility will be reduced by $23 million in April 2016, and $12 million in March 2018.

Total Money Pool Liquidity Available

$3,602

PSEG / Power

PSEG Money Pool ST Investment

A

Items Excluded from Net Income to Reconcile to Operating Earnings

Please see Slide 2 for an explanation of PSEG’s use of Operating Earnings as a non-GAAP financial measure

and how it differs from Net Income.

2015

2014

2015

2014

2014

2013

Operating Earnings

403

$        

393

$     

1,221

$     

1,153

$  

1,400

$    

1,309

$    

Gain (Loss) on Nuclear Decommissioning Trust (NDT)

Fund Related Activity (PSEG Power)

(14)

17

(11)

40

68

40

Gain

(Loss)

on

Mark-to-Market

(MTM)

(a)

(PSEG

Power)

50

36

58

(138)

66

(74)

Storm O&M, net of insurance recoveries (PSEG Power)

-

(2)

102

(13)

(16)

(32)

Net Income

439

$        

444

$     

1,370

$     

1,042

$  

1,518

$    

1,243

$    

Fully Diluted Average Shares Outstanding (in Millions)

508

507

508

507

508

508

Operating Earnings

0.80

$       

0.77

$    

2.41

$       

2.27

$    

2.76

$      

2.58

$      

Gain (Loss) on NDT Fund Related Activity (PSEG Power)

(0.02)

0.04

(0.02)

0.08

0.13

0.08

Gain (Loss) on MTM

(a)

(PSEG Power)

0.09

0.07

0.11

(0.27)

0.13

(0.14)

Storm O&M, net of insurance recoveries (PSEG Power)

-

(0.01)

0.20

(0.03)

(0.03)

(0.07)

Net Income

0.87

$       

0.87

$    

2.70

$       

2.05

$    

2.99

$      

2.45

$      

(a) Includes the financial impact from positions with forward delivery months.

($ Per Share Impact -

Diluted, Unaudited)

($ Millions, Unaudited)

PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED

Reconciling Items, net of tax

Three Months Ended

Year Ended

Consolidated Operating Earnings Reconciliation

Nine Months Ended

December 31,

September 30,

September 30,

B

Items Excluded from Net Income to Reconcile to Operating Earnings

and Adjusted EBITDA

Please see Slide 2 for an explanation of PSEG’s use of Operating Earnings and Adjusted EBITDA as non-GAAP

financial measures and how they differ from Net Income.

2015

2014

2015

2014

Adjusted EBITDA

401

$        

386

$     

1,328

$     

1,313

$  

1,584

$    

Fossil Major Maintenance, pre-tax

(10)

(10)

(111)

(117)

(144)

Depreciation and Amortization, pre-tax

(b)

(76)

(71)

(228)

(217)

(291)

Interest Expense, pre-tax

(b)

(30)

(31)

(93)

(91)

(120)

Income Taxes

(b)

(115)

(103)

(338)

(337)

(387)

Operating Earnings

170

$        

171

$     

558

$        

551

$     

642

$       

Gain (Loss) on NDT Fund Related Activity, pre-tax

(24)

36

(14)

85

138

Gain (Loss) on MTM, pre-tax

(a)

84

60

98

(233)

111

Storm O&M, net of insurance recoveries, pre-tax

-

(4)

172

(23)

(27)

Income Taxes related to Operating Earnings reconciling items

(24)

(41)

(107)

60

(104)

Net Income

206

$        

222

$     

707

$        

440

$     

760

$       

(a) Includes the financial impact from positions with forward delivery months.

(b) Excludes amounts related to Operating Earnings reconciling items.

September 30,

Three Months Ended

Year Ended

($ Millions, Unaudited)

Nine Months Ended

September 30,

Reconciling Items

2014

December 31,

PSEG Power Adjusted EBITDA Reconciliation