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) February 19, 2016

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 February 19, 2016, PSEG announced unaudited financial results for the three months and twelve months ended December 31, 2015. A copy of the earnings release dated February 19, 2016 is furnished as Exhibit 99 to this Form 8-K.

Item 7.01 Regulation FD Disclosure

PSEG, PSE&G and Power

On February 19, 2016, PSEG conducted an earnings call regarding its results for the three and twelve months ended December 31, 2015. 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 February 19, 2016
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: February 19, 2016

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: February 19, 2016

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: February 19, 2016

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 RESULTS

$3.30 NET INCOME PER SHARE

Operating Earnings of $2.91 Per Share At Upper Half Of Guidance Of $2.85 - $2.95 Per Share

Company Provides 2016 Guidance of $2.80 - $3.00 Per Share

Common Dividend Increased 5.1%

(February 19, 2016 – Newark, NJ) Public Service Enterprise Group (PSEG) reported today 2015 Net Income of $1,679 million or $3.30 per share as compared to Net Income of $1,518 million, or $2.99 per share for 2014. Operating Earnings for the year 2015 were $1,476 million or $2.91 per share compared to 2014 Operating Earnings of $1,400 million or $2.76 per share.

PSEG also reported Net Income for the fourth quarter of 2015 of $309 million, or $0.60 per share. This compares to fourth quarter 2014 Net Income of $476 million, or $0.94 per share. Operating Earnings for the fourth quarter of 2015 were $255 million, or $0.50 per share compared to fourth quarter 2014 Operating Earnings of $247 million, or $0.49 per share.

“We are very pleased with our strong results in 2015 with operating earnings for the full year at the upper half of our increased guidance” said Ralph Izzo, chairman, president and chief executive officer. “Our results reflect excellent performance and organic growth at the utility. With our strong balance sheet, we are in a position to increase our investment across the company to meet the needs of our customers and shareholders. The Board’s recent decision to increase the common dividend by 5.1% to the indicative annual level of $1.64 per share is an expression of confidence in our outlook, the continued growth of our regulated business and an acknowledgment of our strong financial condition.”

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) investments and Mark-To-Market (MTM) accounting as well as 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 full year and fourth quarter. See Attachment 12 for a complete list of items excluded from Net Income in the determination of Operating Earnings.

PSEG CONSOLIDATED EARNINGS (unaudited)

Full-Year Comparative Results

2015 and 2014

	Income ($ millions)				Diluted Earnings Per Share
	2015		2014		2015		2014
Operating Earnings	$	1,476	$	1,400	$	2.91	$	2.76
Reconciling Items		203		118		0.39		0.23
Net Income	$	1,679	$	1,518	$	3.30	$	2.99

Avg.
Shares 508M 508M

PSEG CONSOLIDATED EARNINGS (unaudited)

Fourth Quarter Comparative Results

2015 and 2014

	Income ($ millions)				Diluted Earnings Per Share
	2015		2014		2015		2014
Operating Earnings	$	255	$	247	$	0.50	$	0.49
Reconciling Items		54		229		0.10		0.45
Net Income	$	309	$	476	$	0.60	$	0.94

Avg.
Shares 508M 508M

Ralph Izzo went on to say, “Continued successful deployment of strong free cash flow into customer-oriented regulated investment programs is expected to support 14% growth in PSE&G’s earnings which will increase the utility’s earnings to 60% of Enterprise’s 2016 operating earnings. Results for 2016 are forecast at $2.80 - $3.00 per share.”

The following table outlines PSEG’s 2015 operating earnings by subsidiary and expectations for 2016.

2016 Guidance and 2015 Operating Earnings

($ millions, except EPS)

	2016E	2015A
PSE&G	$   875 - $   925	$	787
PSEG Power	$   490 - $   540	$	653
PSEG Enterprise/Other	$     60 - $     60	$	36
Operating Earnings	$1,425 - $1,525	$	1,476
Earnings Per Share	$  2.80 - $  3.00	$	2.91
E = Estimate A = Actual

Operating Earnings Review and Outlook by Operating Subsidiary

See Attachments 6 and 7 for detail regarding the quarter-over-quarter and year-over-year earnings reconciliations for each of PSEG’s businesses.

PSE&G

PSE&G reported operating earnings of $156 million ($0.31 per share) for the fourth quarter bringing full year operating earnings to $787 million ($1.55 per share). On a comparative basis, PSE&G reported operating earnings of $160 million ($0.32 per share) and $725 million ($1.43 per share) for the fourth quarter and full year 2014, respectively.

PSE&G’s earnings in the fourth quarter benefited from a return on the continued expansion of its investment in transmission and distribution infrastructure which partially offset the impact on earnings of unseasonably mild weather and an increase in operating expenses. For the full year, PSE&G’s management of operations and an expanded capital program allowed it to earn its authorized return on rate base.

PSE&G’s return on an expanded investment in transmission and distribution programs increased quarter-over-quarter earnings by $0.03 per share. Mild weather conditions relative to normal, and to last year, reduced electric sales and lowered earnings comparisons by $0.01 per share. Recovery of gas revenue under the weather normalization clause offset the impact of the abnormally warm weather on the earnings effect of lower sales of gas. Higher expenses, including pension, and other items, reduced quarter-over-quarter earnings comparisons by $0.03 per share.

Economic conditions in the service area continue to improve. On a weather-normalized basis, gas deliveries are estimated to have increased 2.1% in the quarter and 2.2% for the year. Demand continues to benefit from an improving economy and also from the impact of lower commodity prices on customers’ bills. Electric sales, on a weather-normalized basis, are estimated to have increased by 0.8% and 0.5% for the fourth quarter and the year respectively. The estimated year-over-year growth in electric sales is more indicative of our long-term expectations for growth.

PSE&G implemented a $146 million increase in revenue under the company’s transmission formula rate on January 1, 2016. Transmission revenues are adjusted each year to reflect an update of data that was estimated in the transmission formula rate filing. The adjustment for 2016 will include the impact of the extension of bonus depreciation which would reduce our revenue increase as filed by $27 million. PSE&G’s investment in transmission grew in 2015 to $5.7 billion at year-end, or 43% of the company’s consolidated rate base of $13.4 billion at the end of the year.

PSE&G’s operating earnings for 2016 are forecast at $875 million - $925 million.

PSEG Power

PSEG Power reported operating earnings of $95 million ($0.19 per share) for the fourth quarter of 2015 and Adjusted EBITDA of $235 million bringing full year operating earnings to $653 million ($1.29 per share) and Adjusted EBITDA to $1,563 million. Net Income for the quarter and the full year were $149 million and $856 million respectively. On a comparative basis, PSEG Power reported operating earnings of $91 million ($0.18 per share) and Adjusted EBITDA of $271 million for the fourth quarter of 2014 and operating earnings of $642 million ($1.27 per share) and Adjusted EBITDA of $1,584 million for the full year 2014. Net Income in the fourth quarter of 2014 and the full year 2014 were $320 million and $760 million, respectively.

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 fourth quarter reflect the impact of strong hedging and tight control of operating expenses which offset an anticipated decline in capacity revenue, and the impact of unseasonably warm weather on wholesale energy prices.

A decline in capacity revenues associated with the May 2015 retirement of peaking capacity in PJM reduced quarter-over-quarter earnings comparisons by $0.04 per share. An increase in the average price received on energy hedges coupled with a decline in fuel costs more than offset the impact on earnings of a reduction in gas sales netting to a quarter-over-quarter improvement in earnings of $0.02 per share. Power’s O&M expense in the quarter was unchanged relative to year-ago levels. An increase in depreciation expense and miscellaneous items was more than offset by the absence of a charge in the year-ago quarter resulting in a net improvement in quarterly earnings comparisons of $0.03 per share.

Output during the quarter was in-line with year ago levels. For the year, output increased 2% to 55.2 TWh, as improvements in availability and efficiency supported growth. The nuclear fleet operated at an average capacity factor of 90.4% for the year, producing 30 TWh (54% of generation). Efficient combined cycle gas turbine capacity (CCGT) was rewarded in the market with an increase in dispatch levels. Power’s CCGT fleet set a generation record during the year as the Linden Station and Bethlehem Energy Center set individual records. Output from the CCGT fleet grew 11% to 18.4 TWh (33% of total output) during the year. Lower market demand for our coal units reduced output from those stations to 5.8 TWh for the year (11% of total output) as the fleet’s peaking capacity produced 1.0 TWh (2% of total output).

Power is expecting output for 2016 to remain unchanged at 54 – 56 TWh. Following completion of the Basic Generation Service (BGS) auction in New Jersey in February 2016, Power enters the year with 100% of its 2016 baseload generation hedged. Approximately 70% - 75% of anticipated annual production is hedged at an average price of $51 per MWh. Power has hedged approximately 45% - 55% of its forecast generation in 2017 of 54 – 56 TWh at an average price of $50 per MWh. For 2018, Power has hedged 15% - 20% of forecast production of 59 – 61 TWh at an average price of $54 per MWh. Power assumes BGS volumes will represent approximately 11 – 12 TWh in each of 2016 and 2017 – consistent with 11.5 TWh of deliveries in 2015 under the BGS contract.

The forecast improvement in output for 2018 reflects the commercial start-up in mid-2018 of 1300 MWs of new gas-fired combined cycle capacity at the Keys and Sewaren stations.

PSEG Power cleared a new 485-MW clean, natural gas-fired combined cycle power plant at its existing Bridgeport Harbor Station site. The unit, which represents an investment of more than $550 million, is targeted to be in operation in June 2019.

Power’s operating earnings for 2016 are forecast at $490 million - $540 million. The forecast for operating earnings equates to estimated adjusted EBITDA for 2016 of $1,320 million - $1,400 million.

PSEG Enterprise/Other

PSEG Enterprise/Other reported operating earnings for the fourth quarter of 2015 of $4 million compared to an operating earnings loss of $4 million ($0.01 per share) for the fourth quarter of 2014. The results for the fourth quarter brought operating earnings for the full year 2015 for PSEG Enterprise/Other to $36 million ($0.07 per share) versus Operating Earnings in 2014 of $33 million ($0.06 per share).

The difference in operating earnings results quarter-over-quarter primarily reflects the absence of prior year tax adjustments and other items in the fourth quarter of 2014 as well as other Parent related expenses in 2015. For the year, PSEG Long Island contributed $0.02 per share to earnings, in line with expectations.

For 2016, operating earnings for PSEG Enterprise/Other are forecast to be $60 million.

Capital Expenditures

PSEG currently plans to invest approximately $11.5 billion over 2016 – 2018 on capital programs at both PSE&G and PSEG Power. The planned investment program represents a 21% increase over the $9.5 billion invested over the prior three-year period and is expected to be invested in PSE&G (72%) and PSEG Power (27%).

Pension Expense

PSEG, at the end of 2015, changed the approach used to measure service and interest costs for pension and other post-retirement benefits. For 2016, PSEG has elected to measure service and interest costs by applying the specific spot rates along the yield curve to the plans’ liability cash flows. This change does not affect the measurement of the plan obligations. PSEG estimates this change will reduce 2016 pension and OPEB expense by approximately $34 million and $13 million respectively, net of amounts capitalized. On a year-over-year basis, pension expense is expected to decline by $25 million from 2015’s level of expense.

FORWARD LOOKING STATEMENTS

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 Item 1A. Risk Factors, Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations (MD&A), Item 8. Financial Statements and Supplementary Data—Note 12. Commitments and Contingent Liabilities, and other factors discussed in filings we make with the United States Securities and Exchange Commission (SEC) including our 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 ongoing low pricing of the capacity and energy that we sell into wholesale electricity markets,

• adverse changes in energy industry law, policies and regulations, 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, including prudency reviews and disallowances,

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

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

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

• 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 or increase the cost 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,

• delays or unforeseen cost escalations in our construction and development activities, or the inability to recover the carrying amount of our assets,

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

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

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

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

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

• 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,

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

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

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

• an extended economic recession,

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

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

• changes in the credit quality and the ability of lessees to meet their obligations under our domestic leveraged leases.

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 December 31,					Year-Ended December 31,
	2015		2014			2015		2014
Earnings Results ($ Millions)
PSE&G	$	156	$	160		$	787	$	725
PSEG Power		95		91			653		642
PSEG Enterprise/Other		4		(4	)		36		33
Operating Earnings	$	255	$	247		$	1,476	$	1,400
Reconciling Items(a)		54		229			203		118
Net Income	$	309	$	476		$	1,679	$	1,518
Fully Diluted Average Shares Outstanding (in Millions)		508		508			508		508
Per Share Results (Diluted)
PSE&G	$	0.31	$	0.32		$	1.55	$	1.43
PSEG Power		0.19		0.18			1.29		1.27
PSEG Enterprise/Other		—		(0.01	)		0.07		0.06
Operating Earnings	$	0.50	$	0.49		$	2.91	$	2.76
Reconciling Items(a)		0.10		0.45			0.39		0.23
Net Income	$	0.60	$	0.94		$	3.30	$	2.99

(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 December 31, 2015
	PSEG			PSEG Enterprise/ Other (a)			PSE&G			PSEG Power
OPERATING REVENUES	$	2,278		$	(206	)	$	1,402		$	1,082
OPERATING EXPENSES
Energy Costs		684			(343	)		546			481
Operation and Maintenance		808			110			389			309
Depreciation and Amortization		254			9			180			65
Total Operating Expenses		1,746			(224	)		1,115			855
OPERATING INCOME		532			18			287			227
Income from Equity Method Investments		2			(1	)		—			3
Other Income and (Deductions)		17			(21	)		18			20
Other-Than-Temporary Impairments		(8	)		—			—			(8	)
Interest Expense		(102	)		2			(77	)		(27	)
INCOME BEFORE INCOME TAXES		441			(2	)		228			215
Income Tax Benefit (Expense)		(132	)		6			(72	)		(66	)
NET INCOME	$	309		$	4		$	156		$	149
OPERATING EARNINGS	$	255		$	4		$	156		$	95
Reconciling Items Excluded from Net Income (b)		54			—			—			54
NET INCOME	$	309		$	4		$	156		$	149

	Three Months Ended December 31, 2014
	PSEG			PSEG Enterprise/ Other (a)			PSE&G			PSEG Power
OPERATING REVENUES	$	2,773		$	(368	)	$	1,531		$	1,610
OPERATING EXPENSES
Energy Costs		878			(464	)		631			711
Operation and Maintenance		780			97			368			315
Depreciation and Amortization		308			7			224			77
Total Operating Expenses		1,966			(360	)		1,223			1,103
OPERATING INCOME		807			(8	)		308			507
Income from Equity Method Investments		3			—			—			3
Other Income and (Deductions)		75			(2	)		17			60
Other-Than-Temporary Impairments		(6	)		—			—			(6	)
Interest Expense		(98	)		3			(71	)		(30	)
INCOME BEFORE INCOME TAXES		781			(7	)		254			534
Income Tax Benefit (Expense)		(305	)		3			(94	)		(214	)
NET INCOME	$	476		$	(4	)	$	160		$	320
OPERATING EARNINGS	$	247		$	(4	)	$	160		$	91
Reconciling Items Excluded from Net Income (b)		229			—			—			229
NET INCOME	$	476		$	(4	)	$	160		$	320

(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)

	Year-Ended December 31, 2015
	PSEG			PSEG Enterprise/ Other (a)			PSE&G			PSEG Power
OPERATING REVENUES	$	10,415		$	(1,149	)	$	6,636		$	4,928
OPERATING EXPENSES
Energy Costs		3,261			(1,611	)		2,722			2,150
Operation and Maintenance		2,978			361			1,560			1,057
Depreciation and Amortization		1,214			31			892			291
Total Operating Expenses		7,453			(1,219	)		5,174			3,498
OPERATING INCOME		2,962			70			1,462			1,430
Income from Equity Method Investments		12			(2	)		—			14
Other Income and (Deductions)		152			(20	)		75			97
Other-Than-Temporary Impairments		(53	)		—			—			(53	)
Interest Expense		(393	)		8			(280	)		(121	)
INCOME BEFORE INCOME TAXES		2,680			56			1,257			1,367
Income Tax Benefit (Expense)		(1,001	)		(20	)		(470	)		(511	)
NET INCOME	$	1,679		$	36		$	787		$	856
OPERATING EARNINGS	$	1,476		$	36		$	787		$	653
Reconciling Items Excluded from Net Income (b)		203			—			—			203
NET INCOME	$	1,679		$	36		$	787		$	856

	Year-Ended December 31, 2014
	PSEG			PSEG Enterprise/ Other (a)			PSE&G			PSEG Power
OPERATING REVENUES	$	10,886		$	(1,314	)	$	6,766		$	5,434
OPERATING EXPENSES
Energy Costs		3,886			(1,770	)		2,909			2,747
Operation and Maintenance		3,150			406			1,558			1,186
Depreciation and Amortization		1,227			29			906			292
Total Operating Expenses		8,263			(1,335	)		5,373			4,225
OPERATING INCOME		2,623			21			1,393			1,209
Income from Equity Method Investments		13			(1	)		—			14
Other Income and (Deductions)		229			1			58			170
Other-Than-Temporary Impairments		(20	)		—			—			(20	)
Interest Expense		(389	)		10			(277	)		(122	)
INCOME BEFORE INCOME TAXES		2,456			31			1,174			1,251
Income Tax Benefit (Expense)		(938	)		2			(449	)		(491	)
NET INCOME	$	1,518		$	33		$	725		$	760
OPERATING EARNINGS	$	1,400		$	33		$	725		$	642
Reconciling Items Excluded from Net Income (b)		118			—			—			118
NET INCOME	$	1,518		$	33		$	725		$	760

(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)

	December 31, 2015			December 31, 2014
DEBT
Long-Term Debt	$	9,561		$	8,823
Securitization Debt		—			259
Project Level, Non-Recourse Debt		7			16
Total Debt		9,568			9,098
STOCKHOLDERS’ EQUITY
Common Stock		4,915			4,876
Treasury Stock		(671	)		(635	)
Retained Earnings		9,117			8,227
Accumulated Other Comprehensive Loss		(295	)		(283	)
Total Common Stockholders’ Equity		13,066			12,185
Noncontrolling Interests - Equity Investments		1			1
Total Equity		13,067			12,186
Total Capitalization	$	22,635		$	21,284

Attachment 5

PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited, $ Millions)

	Year-Ended December 31,
	2015			2014
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income	$	1,679		$	1,518
Adjustments to Reconcile Net Income to Net Cash Flows
From Operating Activities		2,240			1,642
NET CASH PROVIDED BY OPERATING ACTIVITIES		3,919			3,160
NET CASH USED IN INVESTING ACTIVITIES		(3,942	)		(2,892	)
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES		15			(359	)
Net Change in Cash and Cash Equivalents		(8	)		(91	)
Cash and Cash Equivalents at Beginning of Period		402			493
Cash and Cash Equivalents at End of Period	$	394		$	402

Attachment 6

PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED

Quarter-over-Quarter EPS Reconciliation

December 31, 2015 vs. December 31, 2014

(Unaudited)

* See Attachment 12 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.

Attachment 7

PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED

Year-over-Year EPS Reconciliation

December 31, 2015 vs. December 31, 2014

(Unaudited)

* See Attachment 12 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

Attachment 8

PUBLIC SERVICE ELECTRIC & GAS COMPANY

Retail Sales and Revenues

(Unaudited)

December 31, 2015

Electric Sales and Revenues

Sales (millions kWh)	Three Months Ended		Change vs. 2014			Year Ended		Change vs. 2014
Residential		2,656		-5.3	%		13,675		4.5	%
Commercial & Industrial		6,374		-0.5	%		27,706		1.4	%
Street Lighting		101		6.2	%		334		2.3	%
Interdepartmental		2		2.0	%		10		0.7	%
Total		9,133		-1.9	%		41,725		2.4	%
Revenue ($ millions)
Residential	$	401		-7.8	%	$	2,178		6.0	%
Commercial & Industrial		376		-10.1	%		2,001		-2.6	%
Street Lighting		19		5.1	%		71		3.4	%
Other Operating Revenues*		135		7.9	%		592		16.4	%
Total	$	931		-6.6	%	$	4,842		3.3	%
Weather Data	Three Months Ended		Change vs. 2014			Year Ended		Change vs. 2014
THI Hours - Actual		270		10.3	%		18,980		37.9	%
THI Hours - Normal		322					16,074

* 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)

December 31, 2015

Gas Sold and Transported

Sales (millions therms)*	Three Months Ended		Change vs. 2014			Year Ended		Change vs. 2014
Firm Sales
Residential Sales		329		-25.8	%		1,497		-4.7	%
Commercial & Industrial		221		-22.3	%		1,026		-2.8	%
Total Firm Sales		550		-24.5	%		2,523		-4.0	%
Non-Firm Sales
Commercial & Industrial		429		-32.9	%		2,054		-16.7	%
Total Non-Firm Sales		429					2,054
Total Sales		979		-28.4	%		4,577		-10.2	%
Revenue ($ millions)
Residential Sales - Firm	$	85		1.9	%	$	308		-37.2	%
Commercial & Industrial - Firm Sales		42		-48.1	%		239		-24.1	%
Non-Firm Sales		5		-35.3	%		34		-16.5	%
Other Operating Revenues**		45		2.5	%		174		1.3	%
Total	$	177		-17.9	%	$	755		-25.9	%
Gas Transported	$	294		-7.8	%	$	1,039		-2.3	%
Weather Data	Three Months Ended		Change vs. 2014			Year Ended		Change vs. 2014
Degree Days - Actual		1,104		-31.3	%		4,661		-8.2	%
Degree Days - Normal		1,645					4,684

* 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 December 31,						Year-Ended December 31,
	2015			2014			2015		2014
Nuclear - NJ		4,835			5,069			20,084		19,722
Nuclear - PA		2,430			1,887			9,929		9,386
Total Nuclear		7,265			6,956			30,013		29,108
Fossil - Coal/Natural Gas - NJ**		(16	)		(19	)		526		1,421
Fossil - Coal - PA		828			1,163			4,681		5,108
Fossil - Coal - CT		2			122			602		832
Total Coal		814			1,266			5,809		7,361
Fossil - Oil & Natural Gas - NJ		3,184			3,503			14,116		12,922
Fossil - Oil & Natural Gas - NY		1,462			1,129			5,153		4,527
Fossil - Oil & Natural Gas - CT		—			5			122		244
Total Oil & Natural Gas		4,646			4,637			19,391		17,693
		12,725			12,859			55,213		54,162

	% Generation by Fuel Type						% Generation by Fuel Type
	Three Months Ended December 31,						Year-Ended December 31,
	2015			2014			2015			2014
Nuclear - NJ		38	%		39	%		36	%		37	%
Nuclear - PA		19	%		15	%		18	%		17	%
Total Nuclear		57	%		54	%		54	%		54	%
Fossil - Coal/Natural Gas - NJ**		0	%		0	%		1	%		3	%
Fossil - Coal - PA		7	%		9	%		9	%		9	%
Fossil - Coal - CT		0	%		1	%		1	%		2	%
Total Coal		7	%		10	%		11	%		14	%
Fossil - Oil & Natural Gas - NJ		25	%		27	%		26	%		24	%
Fossil - Oil & Natural Gas - NY		11	%		9	%		9	%		8	%
Fossil - Oil & Natural Gas - CT		0	%		0	%		0	%		0	%
Total Oil & Natural Gas		36	%		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 months ended and year-ended December 31, 2015 and 2014. Generation includes natural gas fuel switching intervals.

Attachment 11

PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED

Statistical Measures

(Unaudited)

	Three Months Ended December 31,						Year-Ended December 31,
	2015			2014			2015			2014
Weighted Average Common Shares Outstanding (millions)
Basic		505			506			505			506
Diluted		508			508			508			508
Stock Price at End of Period							$	38.69		$	41.41
Dividends Paid per Share of Common Stock	$	0.39		$	0.37		$	1.56		$	1.48
Dividend Payout Ratio*								53.6	%		53.6	%
Dividend Yield								4.0	%		3.6	%
Price/Earnings Ratio*								13.3			15.0
Rate of Return on Average Common Equity*								11.6	%		11.8	%
Book Value per Common Share							$	25.86		$	24.09
Market Price as a Percent of Book Value								150	%		172	%
Total Shareholder Return		-7.3	%		12.2	%		-2.8	%		34.4	%

* 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 December 31,					Year-Ended December 31,					Year-Ended December 31,
	2015		2014			2015		2014			2013
Reconciling Items, net of tax	($ Millions, Unaudited)
Operating Earnings	$	255	$	247		$	1,476	$	1,400		$	1,309
Gain (Loss) on Nuclear Decommissioning Trust (NDT)
Fund Related Activity (PSEG Power)		19		28			8		68			40
Gain (Loss) on Mark-to-Market (MTM)(a) (PSEG Power)		35		204			93		66			(74	)
Storm O&M, net of insurance recoveries (PSEG Power)		—		(3	)		102		(16	)		(32	)
Net Income	$	309	$	476		$	1,679	$	1,518		$	1,243
Fully Diluted Average Shares Outstanding (in Millions)		508		508			508		508			508
	($ Per Share Impact - Diluted, Unaudited)
Operating Earnings	$	0.50	$	0.49		$	2.91	$	2.76		$	2.58
Gain (Loss) on NDT Fund Related Activity (PSEG Power)		0.03		0.05			0.01		0.13			0.08
Gain (Loss) on MTM(a) (PSEG Power)		0.07		0.40			0.18		0.13			(0.14	)
Storm O&M, net of insurance recoveries (PSEG Power)		—		—			0.20		(0.03	)		(0.07	)
Net Income	$	0.60	$	0.94		$	3.30	$	2.99		$	2.45

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

PSEG Power Adjusted EBITDA Reconciliation

	Three Months Ended December 31,						Year-Ended December 31,
	2015			2014			2015			2014
Reconciling Items	($ Millions, Unaudited)
Adjusted EBITDA	$	235		$	271		$	1,563		$	1,584
Fossil Major Maintenance, pre-tax		(17	)		(27	)		(128	)		(144	)
Depreciation and Amortization, pre-tax (b)		(73	)		(74	)		(301	)		(291	)
Interest Expense, pre-tax (b)		(27	)		(29	)		(120	)		(120	)
Income Taxes (b)		(23	)		(50	)		(361	)		(387	)
Operating Earnings	$	95		$	91		$	653		$	642
Gain (Loss) on NDT Fund Related Activity, pre-tax		38			53			24			138
Gain (Loss) on MTM, pre-tax (a)		59			344			157			111
Storm O&M, net of insurance recoveries, pre-tax		—			(4	)		172			(27	)
Income Taxes related to Operating Earnings reconciling items		(43	)		(164	)		(150	)		(104	)
Net Income	$	149		$	320		$	856		$	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 4th Quarter & Year-end 2015 February 19, 2016 EXHIBIT 99.1

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 Item 1A. Risk Factors, Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations (MD&A), Item 8. Financial Statements and Supplementary Data—Note 12. Commitments and Contingent Liabilities, and other factors discussed in filings we make with the United States Securities and Exchange Commission (SEC) including our 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 ongoing low pricing of the capacity and energy that we sell into wholesale electricity markets, • adverse changes in energy industry law, policies and regulations, 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, including prudency reviews and disallowances, • any deterioration in our credit quality or the credit quality of our counterparties, • changes in federal and state environmental regulations and enforcement that could increase our costs or limit our operations, • adverse outcomes of any legal, regulatory or other proceeding, settlement, investigation or claim applicable to us and/or the energy industry, • 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 or increase the cost 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, • delays or unforeseen cost escalations in our construction and development activities, or the inability to recover the carrying amount of our assets, • availability of capital and credit at commercially reasonable terms and conditions and our ability to meet cash needs, • increases in competition in energy supply markets as well as for transmission projects, • changes in technology, such as distributed generation and micro grids, and greater reliance on these technologies, • changes in customer behaviors, including increases in energy efficiency, net-metering and demand response, • adverse performance of our decommissioning and defined benefit plan trust fund investments and changes in funding requirements, • 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, • delays in receipt of necessary permits and approvals for our construction and development activities, • any inability to achieve, or continue to sustain, our expected levels of operating performance, • changes in the cost of, or interruption in the supply of, fuel and other commodities necessary to the operation of our generating units, • an extended economic recession, • an inability to realize anticipated tax benefits or retain tax credits, • challenges associated with recruitment and/or retention of a qualified workforce, and • changes in the credit quality and the ability of lessees to meet their obligations under our domestic leveraged leases. 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.

GAAP Disclaimer 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. 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 2015 Q4 and Full Year Review Ralph Izzo Chairman, President and Chief Executive Officer

Q4 Earnings Summary – Strong Operating Results $ millions (except EPS) 2015 2014 Operating Earnings $ 255 $ 247 Reconciling Items, Net of Tax 54 229 Net Income $ 309 $ 476 EPS from Operating Earnings* $ 0.50 $ 0.49 Quarter ended December 31 * See Slide A for Items excluded from Net Income to reconcile to Operating Earnings.

Full-year Earnings Summary – 5.4% Increase in Operating Earnings $ millions (except EPS) 2015 2014 Operating Earnings $ 1,476 $ 1,400 Reconciling Items, Net of Tax 203 118 Net Income $ 1,679 $ 1,518 EPS from Operating Earnings* $ 2.91 $ 2.76 Twelve Months ended December 31 * See Slide A for Items excluded from Net Income to reconcile to Operating Earnings.

PSEG 2015 – A Year of Successful Deployment of Capital and Strong Operating Performance Strong 2015 financial performance – at upper half of guidance Operating earnings of $2.91 per share, up 5.4%, the 3rd consecutive year of growth PSE&G achieved 9% growth in earnings, at the upper end of guidance PSEG Power’s operating earnings in line with guidance Continued operational excellence Power generation up 2% for the year led by record CCGT production and solid nuclear performance PSE&G recognized for the 14th consecutive year as the Mid-Atlantic region’s most reliable electric utility; named Electric Light & Power’s Utility of the Year for 2015 Disciplined capital investment – producing results PSEG capital program invested $3.6 billion in 2015 at PSE&G (75%) and Power (25%) PSEG Power announced $2.0 billion of investment in new, gas fired generation and continuing capacity expansion work at fossil units PSE&G’s GSMP ($905 million over 3 years) approved for gas infrastructure replacement Energy Strong investments continue ($556 million spent through 2015 of the original $1.22 billion program) Energy Efficiency II Extension approved (~$95 million)

PSEG Annual Dividend – Increased 5.1% to $1.64 per share PSEG Annual Dividend Rate *Indicated annual 2016 PSEG COMMON DIVIDEND rate per share. **2016 payout ratio reflects the indicated annual dividend rate divided by the midpoint of 2016 operating earnings guidance of $2.80 - $3.00 per share. Payout Ratio 66% 43% 44% 43% 44% 50% 58% 56% 54% 54% 57%** Continuing an improved rate of growth in the dividend, building on a 109-year history of returning cash to the shareholder $ Per Share $1.64*

$2.80 - $3.00E PSEG 2016 Earnings Guidance $2.76 * See Slide A for Items excluded from Net Income to reconcile to Operating Earnings. E = Estimate. $2.91 Growth in regulated operations offsetting commodity market weakness in 2016

PSEG 2015 Q4 Operating Company Review Dan Cregg EVP and Chief Financial Officer

Q4 Operating Earnings by Subsidiary Operating Earnings Earnings per Share $ millions (except EPS) 2015 2014 2015 2014 PSE&G $ 156 $ 160 $ 0.31 $ 0.32 PSEG Power 95 91 0.19 0.18 PSEG Enterprise/Other 4 (4) - (0.01) Operating Earnings* $ 255 $ 247 $ 0.50 $ 0.49 Quarter ended December 31 * See Slide A for Items excluded from Net Income to reconcile to Operating Earnings.

$ / share PSEG EPS Reconciliation – Q4 2015 versus Q4 2014 Capacity (0.04) Re-Contracting, Market Pricing and Lower Gas Sales 0.02 Taxes and Other 0.03 Transmission & Distribution 0.03 Electric Weather, Volume and Demand (0.01) O&M, Taxes and Other (0.03) Q4 2015 Operating Earnings* Q4 2014 Operating Earnings* PSEG Power** PSE&G** PSEG Enterprise/ Other * 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. Taxes and Other

Strong Full-year Operating Earnings Achieved – Up 5.4% Operating Earnings Earnings per Share $ millions (except EPS) 2015 2014 2015 2014 PSE&G $ 787 $ 725 $ 1.55 $ 1.43 PSEG Power 653 642 1.29 1.27 PSEG Enterprise/Other 36 33 0.07 0.06 Operating Earnings* $ 1,476 $ 1,400 $ 2.91 $ 2.76 Twelve Months ended December 31 See Slide A for Items excluded from Net Income to reconcile to Operating Earnings.

$ / share PSEG EPS Reconciliation – Full-year 2015 versus Full-year 2014 Re-Contracting and Market Pricing 0.27 Capacity (0.24) Volume 0.02 O&M (0.05) D&A (0.02) Taxes and Other 0.04 Transmission 0.13 Gas Volume & Demand 0.03 Electric Weather, Volume & Demand 0.04 O&M (Distribution) (0.08) 2015 Operating Earnings* 2014 Operating Earnings* PSEG Power** PSE&G** PSEG Enterprise/ Other PSEG Long Island * 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.

PSE&G 2015 Q4 Review

PSE&G – Q4 Earnings Summary $ millions (except EPS) Q4 2015 Q4 2014 Variance Operating Revenues $ 1,402 $ 1,531 $ (129) Operating Expenses Energy Costs 546 631 (85) Operation & Maintenance 389 368 21 Depreciation & Amortization 180 224 (44) Total Operating Expenses 1,115 1,223 (108) Operating Earnings / Net Income $ 156 $ 160 $ (4) EPS from Operating Earnings $ 0.31 $ 0.32 $ (0.01)

$ / share PSE&G EPS Reconciliation – Q4 2015versus Q4 2014 Q4 2015 Operating Earnings Q4 2014 Operating Earnings Transmission & Distribution Margin 0.03 Electric Weather, Volume & Demand (0.01) O&M, Taxes & Other Prior quarter results for reconciling items may not add to year-to-date (YTD) totals due to rounding.

PSE&G – Q4 Operating Highlights FERC formula rate revenue increase of $146 million effective January 1, 2016; update for bonus depreciation adjustment would lower revenue by $27 million PSE&G will credit residential gas customers with ~$155 million in BGSS bill credits this winter PSE&G recognized for the 14th year as the Mid-Atlantic region’s most reliable electric utility; named Electric Light & Power’s Utility of the year for 2015 Operations Regulatory and Market Environment PSE&G earned its authorized return in 2015 PSE&G’s 2016 operating earnings guidance range is $875 - $925 million, a 14% increase over 2015 operating earnings of $787 million Investment in transmission increased to 43% of rate base at year-end 2015, as rate base expanded by 14% to $13.4 billion Financial Q4 weather dominated by warmest December on record; average December temperature of 47.8°F resulted in heating degree days that were 31% below Q4 2014 and normal Low natural gas prices continue to benefit weather normalized gas sales, up 2.1% for Q4 and up 2.2% for full-year 2015 Electric sales rose 0.8% in Q4 and 0.5% for the year on a weather adjusted basis, reflecting improved economic conditions in the quarter

PSEG Power 2015 Q4 Review

PSEG Power – Q4 EPS Summary $ millions (except EPS) Q4 2015 Q4 2014 Variance Operating Revenues $ 1,082 $ 1,610 $ (528) Operating Earnings 95 91 4 Pro Forma Adjustments, Net of Tax** 54 229 (175) Net Income $ 149 $ 320 $ (171) EPS from Operating Earnings* $ 0.19 $ 0.18 $ 0.01 * 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.

Lower Capacity (0.04) Re-Contracting, Market Pricing & Lower Gas Sales 0.02 $ / share PSEG Power EPS Reconciliation – Q4 2015 versus Q4 2014 Q4 2015 Operating Earnings* Q4 2014 Operating Earnings* Taxes and Other *See Slide A for Items excluded from Net Income to reconcile to Operating Earnings. Results may not add to totals due to rounding.

PSEG Power – Q4 Generation Measures – Volume % Quarter ended December 31 Total Nuclear Total Coal* Oil & Natural Gas * Includes figures for Pumped Storage. Includes Hudson and Mercer when run on gas. PSEG Power – Generation (GWh) 12,859 12,725 Quarter ended December 31 PSEG Power – Capacity Factors (%) 2014 2015 Combined Cycle PJM and NY 59.9% 64.2% Coal* NJ (Coal/Gas) 0.7% 0.2% PA 68.4% 48.6% CT 13.8% 0.2% Nuclear 84.5% 85.4%

PSEG Power – Full-Year Generation Measures – Volume % Twelve months ended December 31 Total Nuclear Total Coal* Oil & Natural Gas * Includes figures for Pumped Storage. Includes Hudson and Mercer when run on gas. PSEG Power – Generation (GWh) 54,162 55,213 Twelve months ended December 31 PSEG Power – Capacity Factors (%) 2014 2015 Combined Cycle PJM and NY 56.0% 65.8% Coal* NJ (Coal/Gas) 14.0% 5.6% PA 75.7% 69.3% CT 23.7% 17.9% Nuclear 89.3% 90.4%

PSEG Power – Fuel Costs Quarter ended December 31 ($ millions) 2014 2015 Coal 39 23 Oil & Gas 134 62 Total Fossil 173 85 Nuclear 49 51 Total Fuel Cost 222 136 Total Generation (GWh) 12,859 12,725 $ / MWh 17.23 10.73 PSEG Power – Fuel Costs Twelve months ended December 31 ($ millions) 2014 2015 Coal 208 163 Oil & Gas 758 485 Total Fossil 966 648 Nuclear 210 213 Total Fuel Cost 1,176 861 Total Generation (GWh) 54,162 55,213 $ / MWh 21.72 15.59

PSEG Power – Q4 2015 Gross Margin Performance $46 Quarter ended December 31 Twelve Months ended December 31 $47 Favorable hedges offset declines in wholesale market prices Capacity revenues affected by HEDD retirements in second half 2015 Market prices influenced by record mild weather Access to Marcellus gas continues to provide fuel cost savings Regional Performance Region Q4 Gross Margin ($M) Q4 2015 Performance PJM $449 Favorable hedges offset declines in capacity revenues post HEDD retirements, lower market pricing and lower generation output New England $26 Lower generation and lower market pricing New York $19 Higher market demand PSEG Power Gross Margin ($/MWh) $37 $42 $39 $42

Full Requirements Component Capacity Markets/RPM Growing Renewable Energy/Transmission Component for Market Risk Market Perspective – 2016 BGS Auction Results … Latest auction results reflect a decline in energy prices, and increase in cost of transmission, capacity and renewables Note: BGS prices are quoted in $/MWh and reflect PSE&G Zone; results from the 2014-2016 auctions will be the new blended prices beginning June 1, 2016. Three-Year Average Round the Clock PJM West Forward Energy Price Capacity Load shape Transmission Congestion Ancillary services Risk premium Green $97.39 ~ $46 ~ $53 $83.88 ~ $59 $92.18 $37 - $38 $39 - $40 $38 - $39 $37 - $38 ~ $62 $99.54 $/MWh $96.38 ~ $63 $33 - $34

Hedging Update… Contracted Energy* * HEDGE PERCENTAGES AND PRICES AS OF DECEMBER 31, 2015, UPDATED WITH 2016 BGS AUCTION RESULTS. 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.

PSEG Power – Q4 2015 Operating Highlights Q4 output down 1% over Q4 2014; full-year 2015 generation up 2% to 55.2 TWh on nuclear and CCGT production gains Nuclear fleet capacity factor of 90.4% for 2015; nuclear output of 30 TWh was 3rd best run New CCGT all-time production total of 18.4 TWh for 2015, up 11% over 2014’s record output of 16.5 TWh on record performance at Linden 1&2 and Bethlehem Energy Center Operations Regulatory and Market Environment Financial 2016 BGS auction priced at $96.38/MWh vs. $99.54/MWh in 2015 2016 expected generation output 54-56 TWh; BGS load projected at 11-12 TWhs Power cleared a new 485 MW CCGT unit at its existing Bridgeport Harbor site; Construction of the ~$550 million unit expected to begin 2017 for target completion in 2019 Construction has commenced at Keys and Sewaren 7 for targeted 2018 in-service Power’s total debt as a percentage of capitalization at year-end was 27% Power’s FFO/Debt at December 31 remains strong Power’s 2016 operating earnings guidance range is $490 - $540 million; adjusted EBITDA guidance for 2016 is $1.32 billion to $1.40 billion

PSEG

PSEG Financial Highlights Introducing 2016 operating earnings guidance of $2.80 - $3.00 per share Focused on maintaining operating efficiency and customer reliability PSE&G earnings forecast to grow 14% to comprise >60% of 2016’s operating earnings PSEG capital spending forecast of $11.5 billion over 2016-2018 up 21% over the 2013-2015 period, to be invested in PSE&G (72%) and Power (27%) PSE&G infrastructure investment in reliability/resiliency/replacement continues PSEG Power making $2.0 billion investment in new generation in PJM and New England, improves fleet efficiency and geographic diversification Increased 2016 common dividend by 5.1% to $1.64 per share Financial position remains strong: Bonus depreciation extension will add $1.7 billion to cash over the 2016-2019 period Positive cash from Power and increasing cash flow from operations at PSE&G supports dividend growth and funds capital spending program without the need to issue equity Debt as a percentage of capitalization was 43% at December 31

PSEG 2016 Operating Earnings Guidance - By Subsidiary $ millions (except EPS) 2016E 2015 2014 PSE&G $875 - $925 $787 $725 PSEG Power $490 - $540 $653 $642 PSEG Enterprise/Other $60 - $60 $36 $33 Operating Earnings* $1,425 - $1,525 $1,476 $1,400 Earnings per Share $2.80 - $3.00E $2.91 $2.76 *See Slides A and B for Items excluded from Net Income to reconcile to Operating Earnings and Adjusted EBITDA. E = Estimate. Segment Earnings Guidance and Prior Results $ millions (except EPS) 2016E 2015 2014 PSEG Power $1,320 - $1,400 $1,563 $1,584 PSEG Power Adjusted EBITDA*

PSEG Power’s Adjusted EBITDA – Q4 2015, Full-Year 2015 and Full-Year 2016 Guidance Three Months Ended December 31, Full Year Full-Year 2016 Guidance ($ in millions) 2015 2014 2015 2014 Low High Operating Earnings** $95 $91 $653 $642 $490 $540 Add: Fossil Major Maintenance, pre-tax 17 27 128 144 80 80 Depreciation & Amortization, pre-tax 73 74 301 291 340 340 Interest Expense, pre-tax 27 29 120 120 80 80 Income Taxes 23 50 361 387 330 360 Adjusted EBITDA $235 $271 $1,563 $1,584 $1,320E $1,400E 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.

PSEG Liquidity as of December 31, 2015

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. A

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. (a) Includes the financial impact from positions with forward delivery months. (b) Excludes amounts related to Operating Earnings reconciling items.