-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Nh5T2hj6NCBlEBaXswgbl4+5W7GawiPFv5RabzmHxjxly8fEavM2ZmHIMyQxHhs5 hsO50d8cayQAKBsZ4WPJ7w== 0000788784-97-000013.txt : 19970520 0000788784-97-000013.hdr.sgml : 19970520 ACCESSION NUMBER: 0000788784-97-000013 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19970331 FILED AS OF DATE: 19970515 SROS: NYSE SROS: PHLX FILER: COMPANY DATA: COMPANY CONFORMED NAME: PUBLIC SERVICE ENTERPRISE GROUP INC CENTRAL INDEX KEY: 0000788784 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC & OTHER SERVICES COMBINED [4931] IRS NUMBER: 222625848 STATE OF INCORPORATION: NJ FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-09120 FILM NUMBER: 97606925 BUSINESS ADDRESS: STREET 1: 80 PARK PLZ STREET 2: P O BOX 1171 CITY: NEWARK STATE: NJ ZIP: 07101 BUSINESS PHONE: 2014307000 FILER: COMPANY DATA: COMPANY CONFORMED NAME: PUBLIC SERVICE ELECTRIC & GAS CO CENTRAL INDEX KEY: 0000081033 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC & OTHER SERVICES COMBINED [4931] IRS NUMBER: 221212800 STATE OF INCORPORATION: NJ FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-00973 FILM NUMBER: 97606926 BUSINESS ADDRESS: STREET 1: 80 PARK PLZ STREET 2: PO BOX 570 CITY: NEWARK STATE: NJ ZIP: 07101 BUSINESS PHONE: 2014307000 10-Q 1 FORM 10-Q ================================================================================ UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) [ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 1997 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission Registrant, State of Incorporation, I.R.S. Employer File Number Address, and Telephone Number Identification No. - -------------------------------------------------------------------------------- 1-9120 PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED 22-2625848 (A New Jersey Corporation) 80 Park Plaza P.O. Box 1171 Newark, New Jersey 07101-1171 201 430-7000 http://www.pseg.com 1-973 PUBLIC SERVICE ELECTRIC AND GAS COMPANY 22-1212800 (A New Jersey Corporation) 80 Park Plaza P.O. Box 570 Newark, New Jersey 07101-0570 201 430-7000 Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No The number of shares outstanding of Public Service Enterprise Group Incorporated's sole class of common stock, as of the latest practicable date, was as follows: Class: Common Stock, without par value Outstanding at April 30, 1997: 231,957,608 As of April 30, 1997, Public Service Electric and Gas Company had issued and outstanding 132,450,344 shares of common stock, without nominal or par value, all of which were privately held, beneficially and of record by Public Service Enterprise Group Incorporated. ================================================================================ TABLE OF CONTENTS Page PART I. FINANCIAL INFORMATION Item 1. Financial Statements Public Service Enterprise Group Incorporated (Enterprise): Consolidated Statements of Income for the Three Months Ended March 31, 1997 and 1996............................. Consolidated Balance Sheets as of March 31, 1997 and December 31, 1996............................................ Consolidated Statements of Cash Flows for the Three Months Ended March 31, 1997 and 1996............................. Consolidated Statements of Retained Earnings for the Three Months Ended March 31, 1997 and 1996............................. Public Service Electric and Gas Company (PSE&G): Consolidated Statements of Income for the Three Months Ended March 31, 1997 and 1996............................. Consolidated Balance Sheets as of March 31, 1997 and December 31, 1996............................................ Consolidated Statements of Cash Flows for the Three Months Ended March 31, 1997 and 1996............................. Consolidated Statements of Retained Earnings for the Three Months Ended March 31, 1997 and 1996............................. Notes to Consolidated Financial Statements - Enterprise............ Notes to Consolidated Financial Statements - PSE&G................. Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Enterprise......................................................... PSE&G ............................................................ PART II. OTHER INFORMATION Item 1. Legal Proceedings........................................... Item 4. Submission of Matters to a Vote of Security Holders......... Item 5. Other Information........................................... Item 6. Exhibits and Reports on Form 8-K............................ Signatures - Public Service Enterprise Group Incorporated............ Signatures - Public Service Electric and Gas Company.................
PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED CONSOLIDATED STATEMENTS OF INCOME (Thousands of Dollars, except Per Share Data) Three Months Ended March 31, ------------------------------ 1997 1996 ------------- ------------- OPERATING REVENUES Electric $ 960,457 $ 959,436 Gas 733,860 796,916 Nonutility Activities 38,235 41,996 ------------- ------------- Total Operating Revenues 1,732,552 1,798,348 ------------- ------------- OPERATING EXPENSES Operation Fuel for Electric Generation and Interchanged Power 248,352 216,075 Gas Purchased 421,833 456,732 Other 249,340 256,861 Maintenance 57,553 95,416 Depreciation and Amortization 150,339 152,346 Taxes Federal Income Taxes 102,984 98,102 New Jersey Gross Receipts Taxes 172,046 188,436 Other 20,921 24,942 ------------- ------------- Total Operating Expenses 1,423,368 1,488,910 ------------- ------------- OPERATING INCOME 309,184 309,438 OTHER INCOME AND DEDUCTIONS Settlement of Salem Litigation - Net of Taxes (Note 3) (53,300) -- Other - net 2,302 (773) ------------- ------------- Total Other Income and Deductions (50,998) (773) ------------- ------------- INCOME BEFORE INTEREST CHARGES AND DIVIDENDS ON PREFERRED SECURITIES 258,186 308,665 ------------- ------------- INTEREST CHARGES Long-Term Debt 97,009 101,445 Short-Term Debt 5,441 7,189 Other 7,099 6,883 ------------- ------------- Total Interest Charges 109,549 115,517 Allowance for Funds Used During Construction - Debt and Capitalized Interest (5,546) (4,547) ------------- ------------- Net Interest Charges 104,003 110,970 Preferred Securities Dividend Requirements 14,292 12,241 Net Loss on Preferred Stock Redemptions 377 -- ------------- ------------- Income From Continuing Operations 139,514 185,454 Discontinued Operations - Net of Taxes (Note 5) -- 8,650 ------------- ------------- NET INCOME $ 139,514 $ 194,104 ============= ============= SHARES OF COMMON STOCK OUTSTANDING End of Period 231,957,608 244,697,930 Average for Period 232,071,604 244,697,930 EARNINGS PER AVERAGE SHARE Income From Continuing Operations $ 0.60 $ 0.75 Income From Discontinued Operations -- 0.04 ------------- ------------- TOTAL EARNINGS PER AVERAGE SHARE $ 0.60 $ 0.79 ============= ============= DIVIDENDS PAID PER SHARE OF COMMON STOCK $ 0.54 $ 0.54 ============= ============= See Notes to Consolidated Financial Statements.
PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED CONSOLIDATED BALANCE SHEETS ASSETS (Thousands of Dollars) March 31, December 31, 1997 1996 ----------- ------------ UTILITY PLANT - Original cost Electric $13,364,416 $13,314,033 Gas 2,577,583 2,555,901 Common 538,993 530,185 ----------- ------------ Total 16,480,992 16,400,119 Less: Accumulated depreciation and amortization 6,020,933 5,889,098 ----------- ------------ Net 10,460,059 10,511,021 Nuclear Fuel in Service, net of accumulated amortization - 1997, $276,472; 1996, $259,384 182,113 198,845 ----------- ------------ Net Utility Plant in Service 10,642,172 10,709,866 Construction Work in Progress, including Nuclear Fuel in Process - 1997, $78,553; 1996, $70,455 468,513 445,321 Plant Held for Future Use 23,966 23,966 ----------- ------------ Net Utility Plant 11,134,651 11,179,153 ----------- ------------ INVESTMENTS AND OTHER NONCURRENT ASSETS Long-Term Investments, net of amortization - 1997, $14,519; 1996, $12,679, and net of valuation allowances - 1997, $15,969; 1996, $16,969 1,914,813 1,854,304 Real Estate Property and Equipment, net of accumulated depreciation - 1997, $6,245; 1996, $5,906 64,462 64,753 Other Plant, net of accumulated depreciation and amortization - 1997, $7,298; 1996, $6,518, and net of valuation allowances - 1997 and 1996, $826 39,742 37,031 Nuclear Decommissioning and Other Special Funds 390,171 382,348 Other Assets 14,114 13,548 ----------- ------------ Total Investments and Other Noncurrent Assets 2,423,302 2,351,984 ----------- ------------ CURRENT ASSETS Cash and Cash Equivalents 350,769 278,903 Accounts Receivable: Customer Accounts Receivable 578,515 499,858 Other Accounts Receivable 213,431 241,483 Less: Allowance for Doubtful Accounts 40,465 42,283 Unbilled Revenues 180,828 248,504 Fuel, at average cost 134,787 313,019 Materials and Supplies, at average cost, net of inventory valuation reserves - 1997 and 1996, $16,100 148,416 147,757 Deferred Income Taxes 23,210 23,210 Miscellaneous Current Assets 23,985 33,976 ----------- ------------ Total Current Assets 1,613,476 1,744,427 ----------- ------------ DEFERRED DEBITS Property Abandonments - net 48,822 52,573 Oil and Gas Property Write-Down 29,636 30,924 Unamortized Debt Expense 135,670 139,067 Deferred OPEB Costs 315,997 226,171 Unrecovered Environmental Costs 127,192 125,900 Unrecovered Plant and Regulatory Study Costs 33,581 33,941 Underrecovered Electric Energy and Gas Costs - net 207,261 176,055 Unrecovered SFAS 109 Deferred Income Taxes 748,589 751,763 Deferred Decontamination and Decommissioning Costs 46,643 46,643 Other 59,278 56,730 ----------- ------------ Total Deferred Debits 1,752,669 1,639,767 ----------- ------------ Total $16,924,098 $16,915,331 =========== ============ See Notes to Consolidated Financial Statements.
PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED CONSOLIDATED BALANCE SHEETS CAPITALIZATION AND LIABILITIES (Thousands of Dollars) March 31, December 31, 1997 1996 ----------- ------------ CAPITALIZATION Common Equity: Common Stock $ 3,603,300 $ 3,626,792 Retained Earnings 1,578,256 1,586,256 ----------- ------------ Total Common Equity 5,181,556 5,213,048 Subsidiaries' Preferred Securities: Preferred Stock Without Mandatory Redemption 94,523 113,392 Preferred Stock With Mandatory Redemption 150,000 150,000 Monthly Guaranteed Preferred Beneficial Interest in PSE&G's Subordinated Debentures 210,000 210,000 Quarterly Guaranteed Preferred Beneficial Interest in PSE&G's Subordinated Debentures 303,000 208,000 Long-Term Debt 4,463,916 4,580,231 ----------- ------------ Total Capitalization 10,402,995 10,474,671 ----------- ------------ OTHER LONG-TERM LIABILITIES Decontamination and Decommissioning Costs 46,643 46,643 Environmental Costs 84,827 85,755 Capital Lease Obligations 52,173 52,371 ----------- ------------ Total Other Long-Term Liabilities 183,643 184,769 ----------- ------------ CURRENT LIABILITIES Long-Term Debt due within one year 607,489 547,981 Commercial Paper and Loans 542,529 638,051 Book Overdrafts 51,547 106,372 Accounts Payable 561,780 590,932 Other Taxes Accrued 263,334 31,577 Interest Accrued 94,799 95,800 Provision for Rate Refund 7,585 89,210 Other 123,594 171,831 ----------- ------------ Total Current Liabilities 2,252,657 2,271,754 ----------- ------------ DEFERRED CREDITS Deferred Income Taxes 3,264,915 3,250,343 Deferred Investment Tax Credits 356,968 361,786 Deferred OPEB Costs 315,997 226,171 Other 146,923 145,837 ----------- ------------ Total Deferred Credits 4,084,803 3,984,137 ----------- ------------ COMMITMENTS AND CONTINGENT LIABILITIES (Note 3) -- -- ----------- ------------ Total $16,924,098 $16,915,331 =========== ============ See Notes to Consolidated Financial Statements.
PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED CONSOLIDATED STATEMENTS OF CASH FLOWS (Thousands of Dollars) For the Three Months Ended March 31, ------------------------------------ 1997 1996 --------- --------- CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 139,514 $ 194,104 Adjustments to reconcile net income to net cash flows from operating activities: Depreciation and Amortization 150,339 151,957 Amortization of Nuclear Fuel 17,088 8,905 Deferral of Electric Energy and Gas Costs - net (31,206) (37,278) Unrealized Losses (Gains) on Investments - net 13,675 (10,103) Provision for Deferred Income Taxes - net 682 24,484 Investment Tax Credits - net (4,600) (5,004) Allowance for Funds Used During Construction - Debt and Capitalized Interest (5,546) (4,547) Proceeds from Leasing Activities 13,871 11,212 Changes in certain current assets and liabilities: Net decrease (increase) in Accounts Receivable and Unbilled Revenues 15,253 (54,383) Net decrease in Inventory - Fuel and Materials and Supplies 177,573 162,307 Net decrease in Accounts Payable (29,152) (28,448) Net increase in Other Accrued Taxes 231,757 243,857 Net change in Other Current Assets and Liabilities (120,872) 17,313 Other 5,549 469 Net cash provided by operating activities - Discontinued Operations -- 10,140 --------- --------- Net Cash provided by operating activities 573,925 684,985 --------- --------- CASH FLOWS FROM INVESTING ACTIVITIES Additions to Utility Plant, excluding AFDC (106,408) (96,349) Net increase in Long-Term Investments and Real Estate (73,818) (21,571) Contribution to Decommissioning Funds and Other Special Funds (7,371) (7,391) Cost of Plant Removal - net (9,048) (11,101) Other (3,385) 14,409 Change in Net Assets - Discontinued Operations -- (9,481) --------- --------- Net cash used in investing activities (200,030) (131,484) --------- --------- CASH FLOWS FROM FINANCING ACTIVITIES Net (decrease) increase in Short-Term Debt (95,522) 184,625 Decrease in Book Overdrafts (54,825) (6,642) Issuance of Long-Term Debt -- 352,451 Redemption of Long-Term Debt (56,807) (430,070) Long-Term Debt Issuance and Redemption Costs -- (38,319) Redemption of Preferred Stock (18,869) -- Issuance of Preferred Securities of Subsidiaries 95,000 -- Retirement of Common Stock (42,588) -- Cash Dividends Paid on Common Stock (125,257) (132,138) Preferred Securities Issuance Expenses (3,161) 2 --------- --------- Net cash used in financing activities (302,029) (70,091) --------- --------- Net increase in Cash and Cash Equivalents 71,866 483,410 Cash and Cash Equivalents at Beginning of Period 278,903 61,964 --------- --------- Cash and Cash Equivalents at End of Period $ 350,769 $ 545,374 ========= ========= Income Taxes Paid $ 3,078 $ 7,288 Interest Paid $ 74,329 $ 110,258 See Notes to Consolidated Financial Statements.
PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED CONSOLIDATED STATEMENTS OF RETAINED EARNINGS (Thousands of Dollars) For the Three Months Ended March 31, ------------------------------------ 1997 1996 ----------- ----------- Balance at Beginning of Period $ 1,586,256 $ 1,636,971 Add: Net Income 139,514 194,104 ----------- ----------- Total 1,725,770 1,831,075 ----------- ----------- Deduct: Cash Dividends on Common Stock 125,257 132,138 Retirement of Common Stock 19,096 -- Preferred Securities Issuance Expenses 3,161 (2) ----------- ----------- Total Deductions 147,514 132,136 ----------- ----------- Balance at End of Period $ 1,578,256 $ 1,698,939 =========== =========== See Notes to Consolidated Financial Statements.
PUBLIC SERVICE ELECTRIC AND GAS COMPANY CONSOLIDATED STATEMENTS OF INCOME (Thousands of Dollars) Three Months Ended March 31, --------------------------------- 1997 1996 ---------------- -------------- OPERATING REVENUES Electric $ 960,457 $ 959,436 Gas 733,860 796,916 -------------- -------------- Total Operating Revenues 1,694,317 1,756,352 -------------- -------------- OPERATING EXPENSES Operation Fuel for Electric Generation and Interchanged Power 248,352 216,075 Gas Purchased 421,833 456,732 Other 231,663 242,890 Maintenance 57,553 95,416 Depreciation and Amortization 149,159 151,433 Taxes Federal Income Taxes 101,907 94,630 New Jersey Gross Receipts Taxes 172,046 188,436 Other 19,685 23,587 -------------- -------------- Total Operating Expenses 1,402,198 1,469,199 -------------- -------------- OPERATING INCOME 292,119 287,153 OTHER INCOME AND DEDUCTIONS Settlement of Salem Litigation - Net of Taxes (53,300) -- Other - net 2,296 (778) -------------- -------------- Total Other Income and Deductions (51,004) (778) -------------- -------------- INCOME BEFORE INTEREST CHARGES AND DIVIDENDS ON PREFERRED SECURITIES 241,115 286,375 -------------- -------------- INTEREST CHARGES Long-Term Debt 83,830 91,512 Short-Term Debt 5,095 4,034 Other 6,558 6,755 -------------- -------------- Total Interest Charges 95,483 102,301 Allowance for Funds Used During Construction - Debt (4,811) (4,291) -------------- -------------- Net Interest Charges 90,672 98,010 -------------- -------------- Preferred Securities Dividend Requirements of Subsidiaries 10,420 4,715 -------------- -------------- NET INCOME 140,023 183,650 Preferred Stock Dividend Requirements 3,872 7,526 Net Loss on Preferred Stock Redemptions 377 -- -------------- -------------- EARNINGS AVAILABLE TO PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED $ 135,774 $ 176,124 ============== ============== See Notes to Consolidated Financial Statements.
PUBLIC SERVICE ELECTRIC AND GAS COMPANY CONSOLIDATED BALANCE SHEETS ASSETS (Thousands of Dollars) March 31, December 31, 1997 1996 ----------- ----------- UTILITY PLANT - Original cost Electric $13,364,416 $13,314,033 Gas 2,577,583 2,555,901 Common 538,993 530,185 ----------- ----------- Total 16,480,992 16,400,119 Less: Accumulated depreciation and amortization 6,020,933 5,889,098 ----------- ----------- Net 10,460,059 10,511,021 Nuclear Fuel in Service, net of accumulated amortization - 1997, $276,472; 1996, $259,384 182,113 198,845 ----------- ----------- Net Utility Plant in Service 10,642,172 10,709,866 Construction Work in Progress, including Nuclear Fuel in Process - 1997, $78,553; 1996, $70,455 468,513 445,321 Plant Held for Future Use 23,966 23,966 ----------- ----------- Net Utility Plant 11,134,651 11,179,153 ----------- ----------- INVESTMENTS AND OTHER NONCURRENT ASSETS Long-Term Investments, net of amortization - 1997, $14,519; 1996, $12,679, and net of valuation allowances - 1997 and 1996, $13,969 132,892 133,342 Nuclear Decommissioning and Other Special Funds 390,171 382,348 Other Plant, net of accumulated depreciation and amortization - 1997, $1,174; 1996, $1,171 19,155 19,157 ----------- ----------- Total Investments and Other Noncurrent Assets 542,218 534,847 ----------- ----------- CURRENT ASSETS Cash and Cash Equivalents 251,377 47,639 Accounts Receivable: Customer Accounts Receivable 578,515 499,858 Other Accounts Receivable 152,872 175,009 Less: Allowance for Doubtful Accounts 40,465 42,283 Accounts Receivable - Associated Companies - net -- 4,308 Unbilled Revenues 180,828 248,504 Fuel, at average cost 134,787 313,019 Materials and Supplies, at average cost, net of inventory valuation reserves - 1997 and 1996, $16,100 148,416 147,757 Deferred Income Taxes 23,210 23,210 Miscellaneous Current Assets 20,617 30,409 ----------- ----------- Total Current Assets 1,450,157 1,447,430 ----------- ----------- DEFERRED DEBITS Property Abandonments - net 48,822 52,573 Oil and Gas Property Write-Down 29,636 30,924 Unamortized Debt Expense 134,393 137,606 Deferred OPEB Costs 315,997 226,171 Unrecovered Environmental Costs 127,192 125,900 Unrecovered Plant and Regulatory Study Costs 33,581 33,941 Underrecovered Electric Energy and Gas Costs - net 207,261 176,055 Unrecovered SFAS 109 Deferred Income Taxes 748,589 751,763 Deferred Decontamination and Decommissioning Costs 46,643 46,643 Other 59,278 56,348 ----------- ----------- Total Deferred Debits 1,751,392 1,637,924 ----------- ----------- Total $14,878,418 $14,799,354 =========== =========== See Notes to Consolidated Financial Statements
PUBLIC SERVICE ELECTRIC AND GAS COMPANY CONSOLIDATED BALANCE SHEETS CAPITALIZATION AND LIABILITIES (Thousands of Dollars) March 31, December 31, 1997 1996 ----------- ----------- CAPITALIZATION Common Equity: Common Stock $ 2,563,003 $ 2,563,003 Contributed Capital from Enterprise 594,395 594,395 Retained Earnings 1,370,816 1,365,003 ----------- ----------- Total Common Equity 4,528,214 4,522,401 Preferred Stock Without Mandatory Redemption 94,523 113,392 Preferred Stock With Mandatory Redemption 150,000 150,000 Subsidiaries' Preferred Securities: Monthly Guaranteed Preferred Beneficial Interest in PSE&G's Subordinated Debentures 210,000 210,000 Quarterly Guaranteed Preferred Beneficial Interest in PSE&G's Subordinated Debentures 303,000 208,000 Long-Term Debt 4,005,958 4,107,331 ----------- ----------- Total Capitalization 9,291,695 9,311,124 ----------- ----------- OTHER LONG-TERM LIABILITIES Decontamination and Decommissioning Costs 46,643 46,643 Environmental Costs 84,827 85,755 Capital Lease Obligations 52,173 52,371 ----------- ----------- Total Other Long-Term Liabilities 183,643 184,769 ----------- ----------- CURRENT LIABILITIES Long-Term Debt due within one year 500,000 423,500 Commercial Paper and Loans 542,529 638,051 Book Overdrafts 51,547 106,372 Accounts Payable 470,793 520,651 Accounts Payable - Associated Companies - net 80,271 -- Other Taxes Accrued 204,469 33,745 Interest Accrued 76,184 86,674 Provision for Rate Refund 7,585 89,210 Other 123,449 132,113 ----------- ----------- Total Current Liabilities 2,056,827 2,030,316 ----------- ----------- DEFERRED CREDITS Deferred Income Taxes 2,545,767 2,557,587 Deferred Investment Tax Credits 346,945 351,637 Deferred OPEB Costs 315,997 226,171 Other 137,544 137,750 ----------- ----------- Total Deferred Credits 3,346,253 3,273,145 ----------- ----------- COMMITMENTS AND CONTINGENT LIABILITIES (Note 3) -- -- ----------- ----------- Total $14,878,418 $14,799,354 =========== =========== See Notes to Consolidated Financial Statements
PUBLIC SERVICE ELECTRIC AND GAS COMPANY CONSOLIDATED STATEMENTS OF CASH FLOWS (Thousands of Dollars) For the Three Months Ended March 31, ------------------------------------ 1997 1996 --------- --------- CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 140,023 $ 183,650 Adjustments to reconcile net income to net cash flows from operating activities: Depreciation and Amortization 149,159 151,044 Amortization of Nuclear Fuel 17,088 8,905 Deferral of Electric Energy and Gas Costs - net (31,206) (37,278) Provision for Deferred Income Taxes - net (8,646) 22,442 Investment Tax Credits - net (4,692) (4,743) Allowance for Funds Used During Construction - Debt (4,811) (4,291) Changes in certain current assets and liabilities: Net decrease (increase) in Accounts Receivable and Unbilled Revenues 13,646 (50,783) Net decrease in Inventory - Fuel and Materials and Supplies 177,573 162,307 Net increase in Accounts Payable 30,413 18,912 Net increase in Other Accrued Taxes 170,724 191,804 Net change in Other Current Assets and Liabilities (90,987) 27,036 Other 2,981 3,385 --------- --------- Net cash provided by operating activities 561,265 672,390 --------- --------- CASH FLOWS FROM INVESTING ACTIVITIES Additions to Utility Plant, excluding AFDC (106,408) (96,349) Net increase in Long-Term Investments (1,403) (19,188) Contribution to Decommissioning Funds and Other Special Funds (7,371) (7,391) Cost of Plant Removal - net (9,048) (11,101) Other 2 (13) --------- --------- Net cash used in investing activities (124,228) (134,042) --------- --------- CASH FLOWS FROM FINANCING ACTIVITIES Net (decrease) increase in Short-Term Debt (95,522) 180,839 Decrease in Book Overdrafts (54,825) (6,642) Issuance of Long-Term Debt -- 352,451 Redemption of Long-Term Debt (24,873) (413,105) Long-Term Debt Issuance and Redemption Costs -- (38,319) Redemption of Preferred Stock (18,869) -- Issuance of Preferred Securities of Subsidiaries 95,000 -- Cash Dividends Paid (130,672) (137,726) Other (3,538) -- --------- --------- Net cash used in financing activities (233,299) (62,502) --------- --------- Net increase in Cash and Cash Equivalents 203,738 475,846 Cash and Cash Equivalents at Beginning of Period 47,639 32,373 --------- --------- Cash and Cash Equivalents at End of Period $ 251,377 $ 508,219 ========= ========= Income Taxes Paid $ 4,149 $ 9,049 Interest Paid $ 71,276 $ 101,605 See Notes to Consolidated Financial Statements.
PUBLIC SERVICE ELECTRIC AND GAS COMPANY CONSOLIDATED STATEMENTS OF RETAINED EARNINGS (Thousands of Dollars) For the Three Months Ended March 31, ------------------------------------ 1997 1996 ----------- ----------- Balance at Beginning of Period $ 1,365,003 $ 1,365,915 Add: Net Income 140,023 183,650 ----------- ----------- Total 1,505,026 1,549,565 ----------- ----------- Deduct Cash Dividends: Preferred Stock, at required rates 3,872 7,526 Common Stock 126,800 130,200 Preferred Securities Issuance Expenses 3,161 -- ----------- ----------- Total Deductions 133,833 137,726 ----------- ----------- Net Loss on Preferred Stock Redemptions (377) -- ----------- ----------- Balance at End of Period $ 1,370,816 $ 1,411,839 =========== =========== See Notes to Consolidated Financial Statements. PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Note 1. Basis of Presentation The financial statements included herein have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). Certain information and note disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations. However, in the opinion of management, the disclosures are adequate to make the information presented not misleading. These financial statements and Notes to Consolidated Financial Statements (Notes) thereto should be read in conjunction with the respective Registrant's Notes contained in the 1996 Annual Report on Form 10-K. The Notes contained herein update and supplement matters discussed in the 1996 Annual Report on Form 10-K. The unaudited financial information furnished herewith reflects all adjustments which are, in the opinion of management, necessary to a fair statement of the results for the interim periods presented. Note 2. Rate Matters Competitive Transition Charge (CTC) On April 24, 1997, the Board of Public Utilities (BPU) issued a generic order regarding CTC filings by electric utilities in New Jersey. The BPU will conduct a generic review of CTC issues since these issues are integral to the restructuring of the electric utility industry. As a result, PSE&G's petition and the motions concerning PSE&G's CTC filing will be placed in abeyance pending the conclusion of the generic proceeding. The BPU will hold a public hearing under the generic proceeding to receive written and oral testimony on June 19, 1997. Written comments regarding the generic proceeding are to be submitted to the BPU by June 27, 1997 and the BPU expects to resolve CTC issues by the end of July 1997. PSE&G cannot predict the outcome of this proceeding. Levelized Gas Adjustment Charge (LGAC) On April 2, 1997, the BPU approved PSE&G's LGAC stipulation. The interim residential LGAC charge, approved on November 22, 1996, will continue through October 31, 1997. Demand Side Adjustment Factor (DSAF) On February 24, 1997, PSE&G filed a motion with the BPU requesting a $151 million increase for its DSAF to reflect increases in the costs associated with PSE&G's Demand Side Management (DSM) Programs. The increase was requested to become effective on May 1, 1997 and continue through December 31, 1998. On March 26, 1997, this matter was transferred to the Office of Administrative Law for hearing. PSE&G cannot predict the outcome of this proceeding. Note 3. Commitments and Contingent Liabilities Hazardous Waste Certain Federal and State laws authorize the U.S. Environmental Protection Agency (EPA) and the New Jersey Department of Environmental Protection (NJDEP), among other agencies, to issue orders and bring enforcement actions to compel responsible parties to investigate and take remedial actions at any site that is determined to present an imminent and substantial danger to the public or the environment because of an actual or threatened release of one or more hazardous substances. Because of the nature of PSE&G's business, including the production of electricity, the distribution of gas and, formerly, the manufacture of gas, various by-products and substances are or were produced or handled which contain constituents classified as hazardous. PSE&G generally provides for the disposal or processing of such substances through licensed independent contractors. However, these statutory provisions impose joint and several responsibility without regard to fault on all responsible parties, including the generators of the hazardous substances, for certain investigative and remediation costs at sites where these substances were disposed of or processed. PSE&G has been notified with respect to a number of such sites and the remediation of these potentially hazardous sites is receiving attention from the government agencies involved. Generally, actions directed at funding such site investigations and remediation include all suspected or known responsible parties. Except as discussed below with respect to its Manufactured Gas Plant Remediation Program (Remediation Program), Enterprise and PSE&G do not expect their expenditures for any such site to have a material effect on their financial condition, results of operations and net cash flows. PSE&G Manufactured Gas Plant Remediation Program In 1988, NJDEP notified PSE&G that it had identified the need for PSE&G, pursuant to a formal arrangement, to systematically investigate and, if necessary, resolve environmental concerns extant at PSE&G's former manufactured gas plant sites. To date, NJDEP and PSE&G have identified 38 such sites. PSE&G is currently working with NJDEP under a program to assess, investigate and, if necessary, remediate environmental concerns at these sites. The Remediation Program is periodically reviewed and revised by PSE&G based on regulatory requirements, experience with the Remediation Program and available remediation technologies. The cost of the Remediation Program cannot be reasonably estimated, but experience to date indicates that costs of at least $20 million per year could be incurred over a period of more than 30 years and that the overall cost could be material to Enterprise and PSE&G's financial condition, results of operations and net cash flows. Settlement of Salem Litigation On May 12, 1997, PSE&G settled the lawsuit brought against it by PECO Energy Company (PECO) and Delmarva Power & Light Company (DP&L), two co-owners of the Salem Nuclear Generating Station (Salem), relating to alleged damages resulting from the current outage of the facility. Under the terms of the settlement, PSE&G will pay an aggregate of $82.0 million to PECO and DP&L. This resulted in an after-tax charge to earnings of $53.3 million or $0.23 per share of Enterprise Common Stock. PSE&G is also obligated to pay $1.4 million for each reactor month that the outage continues beyond an aggregate outage of 64 reactor months, up to a maximum payment under this provision of $17 million. Salem has presently been out of service for approximately 47 reactor months through April 30, 1997, and PSE&G does not expect to be required to make any payments under this provision. PECO, DP&L and PSE&G have also agreed to an operating performance standard through December 31, 2011 for Salem and December 31, 2007 for the Peach Bottom Atomic Power Station (Peach Bottom) operated by PECO. Under this standard, the operator would be required to make payments to the non-operating parties if the three-year capacity factor, determined annually, of either station falls below 40 percent, subject to a maximum of $25 million per year. The initial three-year period begins for Peach Bottom on January 1, 1998 and for Salem on the date the later of the two Salem units returns to service. The parties have further agreed to forego litigation in the future, except for limited cases in which the operator would be responsible for damages of no more than $5 million per year. As previously reported, PSE&G and Atlantic City Electric Company (ACE) entered into an operating agreement which resulted in the dismissal of a similar lawsuit by ACE. Under the agreement, ACE pays a portion of its 1997 operation and maintenance (O&M) requirements based on the generation at Salem. Current expectations of the return to service of the Salem units (see Nuclear Operations of MD&A), is likely to result in PSE&G absorbing $7 to $10 million of ACE's share of 1997 O&M. As of April 30, 1997, PSE&G has realized $4.5 million of such costs. Note 4. Financial Instruments and Risk Management Enterprise's operations give rise to exposure to market risks from changes in fossil fuel prices, interest rates, foreign exchange rates and security prices of investments. Enterprise's policy is to use derivative financial instruments for the purpose of managing market risk consistent with its business plans and prudent practices. Enterprise does not currently hold or issue financial instruments for trading purposes. Natural Gas Hedging Through March 31, 1997, Energis Resources Incorporated (Energis Resources) entered into futures contracts to buy 7,960,000 mmbtu of natural gas at an average price of $2.04 per mmbtu related to fixed-price sales commitments. Such contracts, together with physical purchase contracts, hedged approximately 93% of its fixed-price sales commitments at March 31, 1997. Energis Resources had a deferred unrealized hedge loss of $0.3 million at March 31, 1997. Note 5. Discontinued Operations Prior year operating results of Energy Development Corporation (EDC) are summarized below: Quarter Ended March 31, 1996 Revenues $68,537 Operating income 19,486 Earnings before income taxes 12,700 Income taxes 4,050 Net income 8,650 PUBLIC SERVICE ELECTRIC AND GAS COMPANY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS The Notes to Consolidated Financial Statements of Enterprise are incorporated herein by reference insofar as they relate to PSE&G and its subsidiaries: Note 1. Basis of Presentation Note 2. Rate Matters Note 3. Commitments and Contingent Liabilities PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Following are the significant changes in or additions to information reported in the Public Service Enterprise Group Incorporated (Enterprise) 1996 Annual Report on Form 10-K affecting the consolidated financial condition and the results of operations of Enterprise and its subsidiaries. This discussion refers to the Consolidated Financial Statements (Statements) and related Notes of Enterprise and should be read in conjunction with such Statements and Notes. Results of Operations Earnings per share of Enterprise common stock were $0.60 for the quarter ended March 31, 1997, a decrease of $0.19 per share of common stock from the comparable 1996 period. The earnings per share decrease was primarily due to the settlement of a lawsuit filed by two of the co-owners of the Salem Nuclear Generating Station (Salem) (see Note 3 -- Commitments and Contingent Liabilities). Under this settlement, PSE&G will pay an aggregate of $82.0 million to PECO Energy Company (PECO) and Delmarva Power and Light Company (DP&L), resulting in an after tax charge to earnings of $53.3 million or $0.23 per share. Another factor that decreased earnings per share was weak electric and gas sales due to mild weather, partially offset by lower operation and maintenance expenses at Hope Creek Nuclear Generating Station (Hope Creek) and Salem. In 1996, expenses at these stations were higher than in 1997 due to the extended 1996 refueling and maintenance outage at Hope Creek and restart activities at Salem. Enterprise Diversified Holdings Incorporated's (EDHI) contribution to earnings decreased. This decrease was primarily due to the contribution of $0.04 per share in the first quarter of 1996 by EDHI's oil and gas subsidiary, Energy Development Corporation (EDC), which was sold on July 31, 1996. Approximately $350 million of the proceeds was used to buy back 12.7 million shares of Enterprise common stock. The resulting lower number of shares outstanding offset, on an earnings per share basis, the absence of an EDC contribution in the first quarter of 1997. PSE&G - Revenues Electric Increase or (Decrease) -------------------------- Quarter Ended March 31, 1997 vs. 1996 -------------------------- (Millions of Dollars) Kilowatt-hour sales $ (23) Recovery of energy costs 30 Non-margin revenues (A) ( 9) Other operating revenues 3 ----------- Total Electric Revenues $ 1 =========== Revenues increased $1 million or 0.1% for the quarter ended March 31, 1997 from the comparable period of 1996 primarily due to higher recovery of energy costs. This increase was partially offset by lower kilowatt-hour sales due to milder weather. Gas Increase or (Decrease) -------------------------- Quarter Ended March 31, 1997 vs. 1996 -------------------------- (Millions of Dollars) Therm sales $ (13) Recovery of fuel costs (31) Non-margin revenues (A) (17) Other operating revenues (2) ---------- Total Gas Revenues $ (63) ========== Revenues decreased $63 million or 7.9% for the quarter ended March 31, 1997 over the comparable period of 1996 primarily due to lower recovery of fuel costs and decreased therm sales due to milder weather. Lower other operating revenues due to weak off-system sales also contributed to the overall revenue decrease. (A) Non-margin revenues primarily reflect recoveries for Demand Side Management (DSM) Program costs, uncollectibles and NJ Gross Receipts and Franchise Taxes (NJGRT). PSE&G - Expenses Other Operation and Maintenance Expenses Other operation and maintenance expenses decreased $49 million or 14.5% for the quarter ended March 31, 1997 from the comparable 1996 period. The decrease was primarily due to Hope Creek's extended refueling and maintenance outage during the first quarter of 1996. Also contributing to the decrease were lower 1997 restart activity expenses at Salem. Federal Income Taxes Federal income taxes increased $7 million or 7.7% for the quarter ended March 31, 1997 from the comparable 1996 period. The increase was primarily due to the increase in 1997 pre-tax income. Interest on Long-Term Debt Interest on long-term debt decreased $8 million or 8.4% for the quarter ended March 31, 1997 from the comparable 1996 period. In 1996, interest was higher due to a premium payment in connection with open market purchases of certain outstanding First and Refunding Mortgage Bonds. Fuel for Electric Generation and Interchanged Power Fuel for Electric Generation and Interchanged Power increased $32 million or 14.9% due to an increase in fuel recovery revenues. Due to the operation of the Electric Levelized Energy Adjustment Clause (LEAC) mechanism, variances in fuel revenues and expenses offset, with no direct effect on earnings. EDHI - Net Income Increase or (Decrease) --------------------------------------------- Quarter Ended March 31, 1997 vs. 1996 --------------------------------------------- Amount Per (Millions of Dollars) Share ----------------------- ---- ---------------- PSRC $ (6) $ (.02) CEA 3 .01 Energis Resources (3) (.01) EGDC 1 -- ----- ---------- ----- ----------- Continuing Operations (5) (.02) Discontinued Operations-EDC (9) (.04) ===== ========== ==== ============ Total $ (14) $ (.06) ===== ========== ==== ============ Continuing Operations EDHI's income from continuing operations was $4 million for the quarter ended March 31, 1997, a $5 million decrease from the comparable 1996 period. The decrease was primarily due to lower gains on Public Service Resources Corporation's (PSRC) security investments held in limited partnerships. The loss for Energis Resources increased due to higher administrative and general expenditures while income for Community Energy Alternatives Inc. (CEA) increased due to the improved operations of several projects. Discontinued Operations EDC was sold on July 31, 1996. Liquidity and Capital Resources Enterprise Cash generated from operations will provide the major source of funds for growth of the business. Cash and cash equivalents totaled $351 million at March 31, 1997. As of March 31, 1997, Enterprise's capital structure consisted of 49.8% common equity, 42.9% long-term debt and 7.3% preferred stock and other preferred securities. Dividend payments on Common Stock were $0.54 per share and totaled $125 million for the quarter ended March 31, 1997. The ability of Enterprise to declare and pay dividends is contingent upon its receipt of dividend payments from its subsidiaries. Since 1992, Enterprise has maintained a constant rate of dividend on its common stock. A key Enterprise objective is to keep its common stock dividend secure. PSE&G For the quarter ended March 31, 1997, PSE&G had utility plant additions, including AFDC, of $111 million, an $11 million increase from the corresponding 1996 period. The increase was primarily due to the cost of the replacement of the Salem Unit 1 steam generators. PSE&G expects that it will be able to internally generate all of its construction and capital requirements over the next five years and reduce its debt outstanding by approximately $1 billion, assuming adequate and timely recovery of costs including any costs stranded as a result of changes in federal and state regulations, as to which no assurances can be given. (See Competitive Environment below; Note 2, Rate Matters; Note 3, Commitments and Contingent Liabilities of Notes and Federal Regulations (Electric) of Item 5.) EDHI During the next five years, EDHI's capital requirements are expected to be provided from additional debt financing, operational cash flows and equity capital. CEA and Energis Resources are expected to be the primary vehicles for EDHI's business growth. A significant portion of CEA's growth is expected to occur in the international arena due to the current and anticipated growth in electric capacity required in certain regions of the world. Energis Resources is expected to expand upon the current energy related services being provided to industrial and commercial customers. PSRC will continue to limit new investments to those related to energy businesses, while Enterprise Group Development Corporation (EGDC) will continue to exit the real estate business in a prudent manner. In the first quarter of 1997, PSRC entered into a leveraged lease of a coal-fired steam generating station located in the Netherlands. In April 1997, PSRC entered into two additional leveraged leases of power plants: one located in the United Kingdom; the other in the Netherlands. The aggregate of these investments amounted to approximately $107 million. In the first quarter of 1997, CEA acquired a 50% interest in a 200 MW natural gas-fired plant located in Columbia which is currently under construction. In April 1997, CEA and a partner won a bid to acquire, for $565 million, 90% of two Argentinean electric distribution companies serving the Buenos Aires province. CEA's indirect ownership of the two companies is 33%. Financial closing is expected to occur in June 1997. Each of these investments is considered an exempt foreign utility company. Also in April 1997, CEA acquired a 49% interest in an operating 180 MW oil-fired cogeneration plant located on the island of Oahu in Hawaii. The aggregate equity investment for these and other projects will amount to approximately $225 million by year end. EDHI, PSRC and CEA are subject to restrictive business and financial covenants contained in existing debt agreements. EDHI is required to maintain a debt to equity ratio of no more than 2.00:1 and a twelve-months earnings before interest and taxes (EBIT) coverage ratio of at least 1.50:1. As of March 31, 1997, EDHI had a consolidated debt to equity ratio of 1.00:1. For the twelve months ended March 31, 1997, the EBIT coverage ratio, as defined to exclude the effects of EGDC and the 1996 gain on the sale of EDC, was 2.25:1. Compliance with applicable financial covenants will depend upon future financial position and levels of earnings, as to which no assurance can be given. Over the next several years, EDHI and its subsidiaries will be required to refinance a portion of their maturing debt in order to meet their capital requirements. Any inability to extend or replace maturing debt and/or existing agreements at current levels and interest rates may affect future earnings and result in an increase in EDHI's cost of capital. External Financings - PSE&G PSE&G has New Jersey Board of Public Utilities (BPU) authority to issue approximately $4.336 billion aggregate amount of additional Bonds/MTNs/Preferred Stock/Preferred Securities through 1997 for refunding purposes. Under its Mortgage, PSE&G may issue new First and Refunding Mortgage Bonds (Bonds) against previous additions and improvements and/or retired Bonds provided that its ratio of earnings to fixed charges is at least 2:1. At March 31, 1997, this Mortgage ratio was 3.34:1. As of March 31, 1997, the Mortgage would permit up to $3.047 billion aggregate principal amount of new bonds to be issued against previous additions and improvements. In February 1997, PSE&G Capital Trust II, a special purpose statutory business trust controlled by PSE&G, issued $95 million of 8.125% Quarterly Income Preferred Securities (Quarterly Guaranteed Preferred Beneficial Interest in PSE&G's Subordinated Debentures). PSE&G used the proceeds to fund the redemption of the remaining 188,684 shares outstanding of its 6.80% Cumulative Preferred Stock $100 par value at $102 per share in January 1997 and will redeem all 750,000 shares of its 7.44% Cumulative Preferred Stock $100 par value at $103.72 per share in June 1997. The BPU has authorized PSE&G to issue and have outstanding at any one time not more than $1.3 billion of short-term obligations, consisting of commercial paper and other unsecured borrowings from banks and other lenders through January 2, 1999. On March 31, 1997, PSE&G had $467 million of short-term debt outstanding. To provide liquidity for its commercial paper program, PSE&G has a $500 million one-year revolving credit agreement expiring in August 1997 and a $500 million five-year revolving credit agreement expiring in August 2000 with a group of commercial banks, which provide for borrowings of up to one year. On March 31, 1997, there were no borrowings outstanding under these credit agreements. PSE&G expects to be able to renew the credit agreement expiring in 1997. PSE&G Fuel Corporation (Fuelco) has a $125 million commercial paper program to finance a 42.49% share of Peach Bottom Atomic Power Station nuclear fuel, supported by a $125 million revolving credit facility with a group of banks, which expires on June 28, 2001. PSE&G has guaranteed repayment of Fuelco's respective obligations under this program. As of March 31, 1997, Fuelco had commercial paper of $74 million outstanding under such program. External Financings - EDHI PSEG Capital Corporation's (Capital) Medium-Term Note (MTN) program is expected to provide for an aggregate principal amount of up to $650 million and its total debt outstanding at any time, including MTNs, is not expected to exceed such amount. At March 31, 1997, Capital had total debt outstanding of $398 million, including $335 million of MTN's. Nuclear Operations PSE&G's Salem Units 1 and 2 were taken out of service in the second quarter of 1995. Salem Unit 2 is in the final stage of preparation for restart and is expected to return to service early in the third quarter of 1997. In a May 5, 1997 letter to the Nuclear Regulatory Commission (NRC), PSE&G requested that the NRC commence its Readiness Assessment Team Inspection (a requirement for unit restart) in early June 1997. PSE&G expects that the NRC will complete its inspection in June. Installation of Salem Unit 1 steam generators is nearing completion, and the unit is expected to return to service in late 1997. Restart of each Salem Unit is subject to NRC approval. The cost of the replacement of Unit 1 steam generators, including installation, and the cost of disposal of the four old steam generators is estimated at $180 million (PSE&G's share is $77 million), of which approximately $150 million has already been spent. The inability to successfully return these units to continuous, safe operation could have a material adverse effect on the financial condition, results of operations and net cash flows of Enterprise and PSE&G. Impact of New Accounting Pronouncement In March 1997, the Financial Accounting Standards Board (FASB) issued Statement of Financial Accounting Standards No. 128, "Earnings per Share" (SFAS 128) which is effective for financial statements issued after December 15, 1997. SFAS 128 supersedes Accounting Principles Board Opinion No. 15 (APB 15) and replaces the presentation of Primary EPS with a presentation of Basic EPS. It also requires presentation of Basic and Diluted EPS on the income statement for all entities with complex capital structures. The adoption of SFAS 128 is not expected to have a material impact on the financial condition, results of operations and net cash flows of Enterprise and PSE&G. Competitive Environment Energy Master Plan On January 16, 1997, the BPU issued its draft report regarding Phase II of the New Jersey Energy Master Plan (draft Phase II report) addressing wholesale and retail electric competition in New Jersey. PSE&G assessed the draft Phase II report's proposed findings and recommendations and, in accordance with the proceeding requirements, filed formal written comments with the BPU on February 28, 1997. The comments stated that PSE&G will voluntarily commit to provide access to its transmission system for retail customers in order to facilitate electric industry restructuring to open the market to competition. PSE&G further stated that it is committed to working toward rate reductions in a manner that assures the reliability of electric service, safeguards the environment, protects the New Jersey labor force and treats investors fairly. PSE&G urged the BPU not to allow prudently incurred costs to be stranded in the industry transition to competition. PSE&G also recommended that, as long as the BPU's policy objectives are met and the utility meets its burden of proof, there should be flexibility in the guidelines for the form and content of the various utility filings required to be made by July 15, 1997. In addition, PSE&G recommended that, at a minimum, the BPU should require certain environmental protection standards. On April 30, 1997, the BPU issued its final report regarding Phase II of the New Jersey Energy Master Plan (final Phase II report). The majority of the final Phase II report mirrors the draft Phase II report, except that it accelerates the phase-in period of customer choice of providers for all customers to include 10% in October 1998, 20% by January 1999, 35% by April 1999, 50% by October 1999, 75% by April 2000 and 100% by July 2000. The final Phase II report also calls for: (1) near term rate reductions in retail electric rates of 5-10%; (2) utilities to have the opportunity, but no guarantee, to recover stranded costs associated with generating capacity investment and independent power contract costs; (3) a market transition charge to be established for a limited time of 4-8 years to provide for the recovery of non-mitigated stranded costs; (4) the issue of securitization of stranded costs to be explored; (5) functional separation of utility generating assets, subject to BPU detailed analyses of potential market power issues and (6) the filing of a rate unbundling plan, stranded cost status report and restructuring plan by July 15, 1997. The final Phase II report endorses environmental disclosure by power suppliers to provide consumers with information necessary to choose cleaner sources of power available in the marketplace. The information will enable verification of claimed emission rates, which will be explored by a Consumer Protection Task Force. The final Phase II report is to be submitted to New Jersey's Governor and Legislature in May 1997, with restructuring legislation expected to be introduced in the Legislature before year-end 1997. BPU action on the July 15, 1997 utility filings pursuant to the final Phase II report is expected to be completed during the fourth quarter of 1998. Stranded Costs Recoverability of stranded costs is largely dependent on the transition rules established by regulators, including the Federal Energy Regulatory Commission (FERC) and the BPU. The final Phase II report concluded that a utility's stranded costs should be limited to costs associated with past financial commitments made for the purpose of procuring a utility's power supply and that the utility should be given the opportunity but that there should not be a guarantee provided for 100% recovery of all eligible stranded costs. Due to uncertainties regarding future market prices of electricity and the duration of the transition period, PSE&G has not yet determined the level of stranded costs related to its generating facilities and thus cannot currently predict the amount of its potential stranded costs. PSE&G plans to file, no later than July 15, 1997, a stranded cost status report with the BPU. The opportunity for full recovery of such eligible costs would be contingent upon, and may be constrained by, the utility meeting a number of conditions, including achievement of the goal of delivering a near term rate reduction to customers of 5 to 10%. A mechanism that is currently being explored to mitigate stranded costs for utilities is securitization. With the adoption of appropriate state legislation, this mechanism offers a means to reduce the cost of stranded asset recovery by refinancing stranded capital, formerly financed with a combination of debt and equity, with all debt. The final Phase II report recognizes the potential benefits of this valuable mechanism. However, the report expresses the BPU's view that securitization is not the sole solution for solving the stranded cost problems but must be used with other reasonably available mitigation steps. Recognizing that stranded costs have not yet been quantified, that the issue of asset securitization and the extent of its application have not been determined, as well as the need for enabling legislation, PSE&G cannot predict the extent to which regulators may allow recovery of its potentially stranded costs. Inability to adequately recover stranded costs could have a material adverse affect on the financial condition, results of operations and net cash flows of Enterprise and PSE&G. New Jersey Gross Receipts and Franchise Tax (NJGRT) On March 10, 1997, legislation was introduced in the New Jersey Legislature to repeal the NJGRT collected by utilities from their customers and replace it with a combination of corporate business tax, state sales and use tax and a transitional assessment which would be phased out over five years. The new tax structure would improve the competitive position of PSE&G vis-a-vis non-utility energy providers in New Jersey who are currently not subject to NJGRT. If this legislation is approved, the new tax structure would take effect January 1, 1998. PSE&G cannot predict when or if this legislation will be approved. PSE&G SelectGas Pilot Program On March 12, 1997, the BPU approved PSE&G's SelectGas Pilot Program which gives residential customers in four municipalities the option to purchase gas from a supplier other than PSE&G beginning May 1, 1997. This residential gas unbundling pilot program will extend through June 1998, but customers can elect to return to the PSE&G system during the pilot or stay with their selected supplier, assuming the customer's supplier also provides for such a change. Unbundling in the gas industry began in PSE&G's service area in 1994 when PSE&G opened the gas market to its commercial and industrial customers. PSE&G The information required by this item is incorporated herein by reference to the following portions of Enterprise's Management's Discussion and Analysis of Financial Condition and Results of Operations, insofar as they relate to PSE&G and its subsidiaries: Results of Operations; Liquidity and Capital Resources; External Financings; Nuclear Operations and Competitive Environment. Forward Looking Statements The Private Securities Litigation Reform Act of 1995 (the Act) provides a new "safe harbor" for forward-looking statements to encourage such disclosures without the threat of litigation providing those statements are identified as forward-looking and are accompanied by meaningful, cautionary statements identifying important factors that could cause the actual results to differ materially from those projected in the statement. Forward-looking statements have been made in this report. 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 "will", "anticipate", "estimate", "expect", "objective" and similar expressions are intended to identify forward-looking statements. In addition to any assumptions and other factors referred to specifically in connection with such forward-looking statements, factors that could cause actual results to differ materially from those contemplated in any forward-looking statements include, among others, the following: deregulation and the unbundling of energy supplies and services; an increasingly competitive energy marketplace; sales retention and growth potential in a mature service territory and a need to contain costs; ability to obtain adequate and timely rate relief, cost recovery, including the potential impact of stranded costs, and other necessary regulatory approvals; federal and state regulatory actions; costs of construction; operating restrictions, increased cost and construction delays attributable to environmental regulations; nuclear decommissioning and the availability of reprocessing and storage facilities for spent nuclear fuel; licensing and regulatory approval necessary for nuclear and other operating stations; and credit market concerns. Enterprise and PSE&G undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. The foregoing review of factors pursuant to the Act should not be construed as exhaustive or as any admission regarding the adequacy of disclosures made by Enterprise and PSE&G prior to the effective date of the Act. PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED PART II. OTHER INFORMATION Item 1. Legal Proceedings Certain information reported under Item 3 of Part I of Enterprise's and PSE&G's 1996 Annual Report to the SEC on Form 10-K is updated below. References are to the related page of the Form 10-K. Page 24. PSE&G settled the lawsuit brought against it by PECO and DP&L, two co-owners of Salem, relating to alleged damages resulting from the current outage of the facility. Under the terms of the settlement, PSE&G will pay an aggregate of $82.0 million to PECO and DP&L. PSE&G would also be obligated to pay $1.4 million for each reactor month that the outage continues beyond an aggregate outage of 64 reactor months, up to a maximum payment under this provision of $17 million. Salem has presently been out of service for approximately 47 reactor months and PSE&G does not expect to be required to make any payments under this provision. The parties have also agreed to an operating performance standard through December 31, 2007 for Peach Bottom (operated by PECO) and December 31, 2011 for Salem. Under this standard, the operator would be required to make payments to the non-operating owners if the three year capacity factor, determined annually, of either station falls below 40 percent subject to a maximum of up to $25 million per year. The initial three-year period begins for Peach Bottom on January 1, 1998 and for Salem on the date the later of the two Salem units returns to service. The parties have further agreed to forego litigation in the future, except for limited cases in which the operator would be responsible for damages of no more than $5 million per year. (See Results of Operations of MD&A and Note 3 -- Commitments and Contingent Liabilities for more information.) Page 24. In the shareholder derivative litigation, the Appellate Division sustained the trial court's denial of defendants' motions to dismiss the complaints. Defendants' appeal of this denial was recently dismissed by the New Jersey Supreme Court. The litigation will now enter the discovery phase. In addition, see the following at the pages indicated: (1) Page 14. Generic proceeding before the BPU relating to Competitive Transition Charges, Docket No. ET96090669. Form 10-K, Page 55. (2) Page 14. Proceedings before the BPU relating to PSE&G's Demand Side Adjustment Factor, Docket No. ER97020101. New Matter On March 18, 1997, Public Service Conservation Resources Corporation (PSCRC), an indirect wholly-owned subsidiary of Enterprise and a direct wholly-owned subsidiary of PSE&G, filed a collection action against SYCOM Enterprises Limited Partnership (SYCOM) in connection with PSCRC's DSM business. PSCRC alleged that SYCOM has breached a number of different loan agreements under which PSCRC is owed approximately $13.4 million in principal and interest. On May 7, 1997, SYCOM filed a counterclaim against PSCRC and a third-party complaint against an officer and certain consultants of PSCRC, alleging damages of $750 million and asserting claims that pursuant to statute, if successful, would permit treble damages. PSCRC believes that the counterclaim and third-party complaint are spurious and without merit and PSCRC will vigorously contest such claims. At March 31, 1997, Enterprise and PSE&G had aggregate investments in PSCRC of $54.9 million. Public Service Conservation Resources Corporation v. Sycom Enterprises Limited Partnership, Docket No. L-2744-97 Superior Court of New Jersey, Law Division, Middlesex County. Item 4. Submission of Matters to a Vote of Security Holders Enterprise's Annual Meeting of Stockholders was held on April 15, 1997. Proxies for the meeting were solicited pursuant to Regulation 14A under the Securities Exchange Act of 1934. There was no solicitation of proxies in opposition to management's nominees as listed in the proxy statement and all of management's nominees were elected to the Board of Directors. Details of the voting are provided below: Votes Votes For Withheld ----------- ---------- Proposal 1 - Election of Directors Class I - Term expiring 2000 Lawrence R. Codey 188,131,745 4,415,553 Ernest H. Drew 188,383,436 4,365,974 Forrest J. Remick 188,411,539 4,328,727 Votes Votes Votes For Against Abstaining ----------- ------------ ---------- Proposal 2 - Appointment of Deloitte & Touche LLP as Independent Auditors for 1997 190,203,448 1,117,328 1,265,980 There were no broker non-votes with respect to either item. Item 5. Other Information Certain information reported under Enterprise's and PSE&G's 1996 Annual Report to the SEC is updated below. References are to the related pages of the Form 10-K as printed and distributed. Nuclear Operations Form 10-K, Page 9 In 1990, General Electric (GE) reported that crack indications were discovered near the seam welds of the core shroud assembly in a GE Boiling Water Reactor (BWR) located outside the United States. As a result, GE issued a letter requesting that the owners of GE BWR plants take interim corrective actions. PSE&G (Hope Creek) and PECO (Peach Bottom) participated in a GE BWR Owners' Group to evaluate this issue and develop long-term corrective actions. During its 1994 refueling outage, PSE&G inspected the shroud of Hope Creek in accordance with GE's recommendations and found no cracks. In June 1994, an industry group was formed and subsequently established generic inspection guidelines which were approved by the NRC. Hope Creek was initially placed in the lowest susceptibility category under these guidelines. Due to Hope Creek's operating time, it now falls into the intermediate susceptibility category. Hope Creek will perform another shroud inspection during its next refueling outage in September 1997. Form 10-K, Page 10 In a separate matter, as a result of several BWRs experiencing clogging of some emergency core cooling system suction strainers, which supply water from the suppression pool for emergency cooling of the core and related structures, the NRC issued a Bulletin in May 1996 to operators of BWRs requesting that measures be taken to minimize the potential for clogging. The NRC has proposed three resolution options and requires that actions be completed by the end of the unit's first refueling outage after January 1, 1997. Alternative resolution options will be subject to NRC approval. PSE&G has responded to the NRC, indicating its intention to comply with the Bulletin. The Bulletin requires all BWRs to resolve this issue at their first refueling outage after January 1, 1997. Therefore, PSE&G will be installing large capacity passive strainers during Hope Creek's next refueling in September 1997. PECO has advised PSE&G that large capacity passive strainers will also be installed at Peach Bottom Units 2 and 3 during their next refueling outages in September 1997 and September 1998, respectively. PSE&G cannot predict what other actions, if any, the NRC may take in this matter. Form 10-K, Page 12 As a result of reracking the two spent fuel pools at Salem, the availability of adequate spent fuel storage capacity is estimated through 2012 for Salem 1 and 2016 for Salem 2, prior to losing an operational full core discharge reserve. The Hope Creek pool is also fully racked and it is expected to provide storage capacity until 2006, again prior to losing an operational full core discharge reserve. PECO has advised PSE&G that spent fuel racks at Peach Bottom have storage capacity until 2000 for Unit 2 and 2001 for Unit 3, prior to losing full core discharge reserve capability. PECO has also advised PSE&G that it is exploring the feasibility of constructing an on-site dry storage facility which would be operational in the year 2000 and designed to provide adequate storage capacity through 2014. Form 10-K, Page 16 New Jersey Department of Environmental Protection (NJDEP) issued a final renewal permit for Hope Creek Station effective April 1, 1997. Federal Regulation (Electric) Form 10-K, Page 2 Federal Energy Regulatory Commission (FERC) Order No. 888 requires all public utilities owning, controlling or operating transmission lines to file nondiscriminatory open access tariffs that offer others the same wholesale transmission service utilities provide to themselves. On February 28, 1997, FERC issued an order accepting for filing nondiscriminatory pool-wide open access transmission tariffs for existing power pools. Transmission services covered by Order No. 888 include network and point-to-point services, as well as ancillary services and a pro forma tariff setting minimum terms and conditions of service for nondiscriminatory open access transmission service. Public utilities are required both to offer service to others under the pro forma tariff and to use the pro forma tariff for their own wholesale energy sales and purchases. This Order also provides public utilities with the opportunity to seek full recovery of prudently incurred, legitimate and verifiable stranded costs resulting from the transfer of open access wholesale transmission service customers to another supplier. To be eligible for recovery, stranded costs must be associated with wholesale requirement contracts signed before July 11, 1994. After that date, recovery must be specifically provided for in the contract. FERC has ruled that stranded costs should be recovered from a utility's departing wholesale customers. FERC has also stated that if costs are stranded by retail wheeling, utilities should first look to the states to recover those costs. FERC will become involved only if state regulators lack authority under state law to provide for stranded cost recovery. Numerous parties, including PSE&G, had filed requests seeking rehearing and clarification of various aspects of Order No. 888. On February 26, 1997, FERC responded to rehearing requests by reaffirming its findings in Order No. 888, making minor adjustments to ease implementation and providing clarifications to issues raised on rehearing. Pennsylvania - New Jersey - Maryland Interconnection (PJM) Form 10-K, Page 6 On April 1, 1997, PJM, as agent for the PJM transmission owners, began providing transmission service under the PJM Open Access Transmission Tariff. The PJM Open Access Transmission Tariff superseded all individual transmission open access tariffs of the PJM transmission owners. In the order, FERC directed PJM to use the PECO proposal for interim implementation due to unresolved questions regarding the other PJM companies' proposal on pricing. FERC had a technical conference on May 9, 1997 to facilitate the resolution of issues not fully addressed in the other PJM companies' proposal on congestion pricing. PSE&G cannot predict what actions, if any, FERC may take in this matter. With respect to the other tariff options contained in PJM's December 31, 1996 filing, FERC ordered implementation of the other PJM companies proposal. Action on interventions and requests for relief filed in response to the December 31, 1996 filing were deferred. Item 6. Exhibits and Reports on Form 8-K (a) A listing of exhibits being filed with this document is as follows: Exhibit Number Document 12 Computation of Ratios of Earnings to Fixed Charges plus Preferred Securities Dividend Requirements (Enterprise). 12(A) Computation of Ratios of Earnings to Fixed Charges (PSE&G). 12(B) Computation of Ratios of Earnings to Fixed Charges plus Preferred Securities Dividend Requirements (PSE&G). 27(A) Financial Data Schedule (Enterprise) 27(B) Financial Data Schedule (PSE&G) (b) Reports on Form 8-K. Registrant Date of Report Item Reported Enterprise and PSE&G January 24, 1997 Item 5 Enterprise and PSE&G January 29, 1997 Item 5 Item 5 PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrants have duly caused these reports to be signed on their respective behalf by the undersigned thereunto duly authorized. PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED PUBLIC SERVICE ELECTRIC AND GAS COMPANY (Registrants) By: PATRICIA A. RADO Patricia A. Rado Vice President and Controller (Principal Accounting Officer) Date: May 15, 1997
EXHIBIT 12 PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES PLUS PREFERRED SECURITIES DIVIDEND REQUIREMENTS 12 Months Ended YEARS ENDED DECEMBER 31, March 31, ------------ ------------ ------------ ------------- ------------- 1992 1993 1994 1995 1996 1997 ------------ ------------ ------------ ------------- ------------- ------------------ (Thousands of Dollars) Earnings as Defined in Regulation S-K: Net Income (A) 475,150 549,178 666,521 627,287 587,358 557,005 Federal Income Taxes (B) 238,270 296,223 320,218 348,324 297,277 302,717 Fixed Charges 537,455 538,556 534,859 548,579 527,974 522,054 ------------ ------------- ------------- ------------- ------------ --------------- Earnings 1,250,875 1,383,957 1,521,598 1,524,190 1,412,609 1,381,776 ============ ============ ============ ============= ============ =============== Fixed Charges as Defined in Regulation S-K (C): Total Interest Expense (D) 481,116 470,585 462,189 464,207 453,111 447,144 Interest Factor in Rentals 9,591 11,090 12,120 11,956 11,490 11,404 Subsidiaries' Preferred Securities Dividend Requirements -- -- 1,680 15,664 27,741 33,495 Preferred Stock Dividends 31,907 38,114 40,467 33,762 23,161 19,507 Adjustment to Preferred and Preference Stock Dividends to state on a pre-income tax basis 14,841 18,767 18,403 22,990 12,471 10,504 ------------ ------------- ------------- ------------- ----------- ---------------- Total Fixed Charges 537,455 538,556 534,859 548,579 527,974 522,054 ============ ============ ============ ============= =========== ================ Ratio of Earnings to Fixed Charges 2.33 2.57 2.84 2.78 2.68 2.65 ============ ============ ============ ============= ============ ================
(A) Excludes 1993 cumulative effect of $5.4 million credit to income reflecting a change in income taxes. (B) Includes state income taxes and federal income taxes for other incomes. (C) Fixed Charges represent (a) interest, whether expensed or capitalized, (b) amortization of debt discount, premium and expense, (c) an estimate of interest implicit in rentals, (d) Preferred Securities Dividend Requirements of subsidiaries, and (e) Preferred Stock Dividend Requirements, increased to reflect the pre-tax earnings requirement for Public Service Enterprise Group Incorporated. (D) Excludes 1992 interest expense on decommissioning costs of $5,208. Effective January 1, 1992, accounting was changed to follow Federal Energy Regulatory Commission guidelines.
EXHIBIT 12 (A) PUBLIC SERVICE ELECTRIC AND GAS COMPANY COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES 12 Months Ended YEARS ENDED DECEMBER 31, March 31, ------------ ------------- ------------- ------------- ------------- 1992 1993 1994 1995 1996 1997 ------------ ------------- ------------- ------------- ------------- ---------------- (Thousands of Dollars) Earnings as Defined in Regulation S-K: Net Income 475,936 614,868 659,406 616,964 535,071 491,444 Federal Income Taxes (A) 223,782 307,414 301,447 325,737 267,619 275,412 Fixed Charges 411,493 401,046 408,045 418,825 437,812 436,662 ------------ ------------- ------------- ------------- ------------- ---------------- Earnings 1,111,211 1,323,328 1,368,898 1,361,526 1,240,502 1,203,518 ============ ============= ============= ============ ============= ================ Fixed Charges as Defined in Regulation S-K (B) Total Interest Expense (C) 401,902 389,956 395,925 406,869 398,581 391,763 Interest Factor in Rentals 9,591 11,090 12,120 11,956 11,490 11,404 Subsidiaries' Preferred Securities Dividend Requirements -- -- -- -- 27,741 33,495 ------------ ------------- ------------- ------------- ------------- ---------------- Total Fixed Charges 411,493 401,046 408,045 418,825 437,812 436,662 ============ ============= ============= ============ ============= ================ Ratio of Earnings to Fixed Charges 2.70 3.30 3.35 3.25 2.83 2.76 ============ ============= ============= ============ ============= ================
(A) Includes state income taxes and federal income taxes for other income. (B) Fixed Charges represent (a) interest, whether expensed or capitalized, (b) amortization of debt discount, premium and expense, (c) an estimate of interest implicit in rentals, and (d) Preferred Securities Dividend Requirements of subsidiaries. (C) Excludes 1992 interest expense on decommissioning costs of $5,208. Effective January 1, 1992, accounting was changed to follow Federal Energy Regulatory Commission guidelines.
EXHIBIT 12 (B) PUBLIC SERVICE ELECTRIC AND GAS COMPANY COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES PLUS PREFERRED SECURITIES DIVIDEND REQUIREMENTS 12 Months Ended YEARS ENDED DECEMBER 31, March 31, ------------ ------------- ------------- ------------- ------------- 1992 1993 1994 1995 1996 1997 ------------ ------------- ------------- ------------- ------------- ----------------- (Thousands of Dollars) Earnings as Defined in Regulation S-K: Net Income 475,936 614,868 659,406 616,964 535,071 491,444 Federal Income Taxes (A) 223,782 307,414 301,447 325,737 267,619 275,412 Fixed Charges 411,493 401,046 408,045 418,825 437,812 436,662 ------------ ------------- ------------- ------------- ------------- ---------------- Earnings 1,111,211 1,323,328 1,368,898 1,361,526 1,240,502 1,203,518 ============ ============= ============= ============= ============= ================= Fixed Charges as Defined in Regulation S-K (B): Total Interest Expense (C) 401,902 389,956 395,925 406,869 398,581 391,763 Interest Factor in Rentals 9,591 11,090 12,120 11,956 11,490 11,404 Subsidiaries' Preferred Securities Dividend Requirements -- -- -- -- 27,741 33,495 Preferred Stock Dividends 31,907 38,114 42,147 49,426 23,161 19,507 Adjustment to Preferred and Preference Stock Dividends to state on a pre-income tax basis 14,768 18,843 18,763 23,428 12,043 10,504 ------------ ------------- ------------- ------------- ------------- ---------------- Total Fixed Charges 458,168 458,003 468,955 491,679 473,016 466,673 ============ ============= ============= ============= ============= ================= Ratio of Earnings to Fixed Charges 2.43 2.89 2.92 2.77 2.62 2.58 ============ ============= ============= ============= ============= =================
(A) Includes state income taxes and federal income taxes for other income. (B) Fixed Charges represent (a) interest, whether expensed or capitalized, (b) amortization of debt discount, premium and expense, (c) an estimate of interest implicit in rentals, (d) Preferred Securities Dividend Requirements of subsidiaries, and (e) Preferred Stock Dividend Requirements increased to reflect the pre-tax earnings requirement for Public Service Electric and Gas Company. (C) Excludes 1992 interest expense on decommissioning costs of $5,208. Effective January 1, 1992, accounting was changed to follow Federal Energy Regulatory Commission guidelines. EX-27.A 2 FDS ENTERPRISE
UT This schedule contains summary financial information extracted from SEC Form 10-Q and is qualified in its entirety by reference to such financial statements. The referenced financial statements are unaudited but, in the opinion of Enterprise's management, reflect all adjustments, consisting only of normal recurring accruals, necessary for a fair presentation. 0000788784 PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED 1000 3-MOS DEC-31-1996 JAN-01-1997 MAR-31-1997 PER-BOOK 11,134,651 2,423,302 1,613,476 1,752,669 0 16,924,098 3,603,300 0 1,578,256 5,181,556 663,000 94,523 4,463,916 0 0 542,529 607,489 0 52,173 0 5,318,912 16,924,098 1,732,552 105,690 1,318,793 1,423,368 309,184 (50,998) 258,186 109,549 139,514 14,292 139,514 125,257 97,009 573,925 .60 .60 State Income Taxes of $1,591 and Federal Income Taxes for Other Income of $1,115 were incorporated into this line item for FDS purposes. In the referenced financial statements, State Income Taxes are included in Taxes - Other and Federal Income Taxes for Other Income are included in Other Income - Miscellaneous.
EX-27.B 3 FDS PSE&G
UT This schedule contains summary financial information extracted from SEC form 10-Q and is qualified in its entirety by reference to such financial statements. The financial statements are unaudited but, in the opinion of PSE&G's management, reflect all adjustments, consisting only of normal recurring accruals, necessary for a fair presentation. 0000081033 PUBLIC SERVICE ELECTRIC AND GAS COMPANY 1000 3-MOS DEC-31-1996 JAN-01-1997 MAR-31-1997 PER-BOOK 11,134,651 542,218 1,450,157 1,751,392 0 14,878,418 2,563,003 594,395 1,370,816 4,528,214 663,000 94,523 4,005,958 0 0 542,529 500,000 0 52,173 0 4,492,021 14,878,418 1,694,317 103,501 1,299,812 1,402,198 292,119 (51,004) 241,115 105,903 140,023 3,872 135,774 126,800 83,830 561,265 0 0 State Income Taxes of $479 and Federal Income Taxes for Other Income of $1,115 were incorporated into this line item for FDS purposes. In the referenced financial statements, State Income Taxes are included in Taxes - Other and Federal Income Taxes for Other Income are included in Other Income - Miscellaneous. Total interest expense includes Preferred Securities Dividend Requirements.
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