EX-99 2 c54450_ex99.htm

Exhibit 99

 

Investor News

 

NYSE:PEG

 

For further information, contact:

 

 

 


 

Kathleen A. Lally, Vice President – Investor Relations

 

Phone: 973-430-6565

 


 

Greg McLaughlin, Sr. Investor Relations Analyst

 

Phone: 973-430-6568

 


 

Yaeni Kim, Sr. Investor Relations Analyst

 

Phone: 973-430-6596

August 1, 2008

PSEG ANNOUNCES STRONG SECOND QUARTER 2008 RESULTS

$750 MILLION SHARE REPURCHASE AUTHORIZED

Loss from Continuing Operations of $0.32 Per Share

Reflects Charge for Certain Leveraged Leases

Operating Earnings of $0.64 Per Share

Reaffirms 2008 Operating Earnings Guidance of $2.80-$3.05 Per Share

Public Service Enterprise Group (PSEG) reported today (August 1, 2008) a Loss from Continuing Operations for the second quarter of 2008 of $166 million or $0.32 per share as compared to Second Quarter 2007 Income from Continuing Operations of $281 million or $0.55 per share. The second quarter loss was principally the result of a charge of $490 million or $0.96 per share to reflect the Company’s current assessment of certain leveraged leases being challenged by the Internal Revenue Service (IRS). Excluding such lease related charges, Operating Earnings for the second quarter of 2008 were $324 million, or $0.64 per share. Operating Earnings and Income from Continuing Operations were $281 million or $0.55 per share for the second quarter of 2007. Including Income from Discontinued Operations, PSEG reported a Net Loss for the second quarter of 2008 of $150 million or $0.29 per share compared to Net Income for the second quarter of 2007 of $275 million or $0.54 per share.

Ralph Izzo, chairman and chief executive officer of PSEG, said that “our results for the second quarter highlight the importance of our employees’ focus on operations, and the equally important need to maintain a strong and stable capital position to meet the demands of today’s business conditions.”

PSEG CONSOLIDATED EARNINGS (unaudited)

For the Quarters Ended June 30,

2008 and 2007

 

 

 

Income
($millions)

 

Diluted Earnings
Per Share

 

 

 

2008

 

2007

 

2008

 

2007*

 

Net Income/(Loss)

 

$

(150

)

$

275

 

$

(0.29

)

$

0.54

 

Less: Income/(Loss) from Discontinued Ops

 

 

16

 

 

(6

)

 

0.03

 

 

(0.01

)

Income/(Loss) From Continuing Ops

 

$

(166

)

$

281

 

$

(0.32

)

$

0.55

 

Add: Lease Reserves

 

 

490

 

 

—

 

 

0.96

 

 

—

 

Operating Earnings (Non-GAAP)

 

$

324

 

$

281

 

$

0.64

 

$

0.55

 

 

 

 

 

Avg. Shares

 

509M

 

 

508M

 

*

Results adjusted to reflect 2:1 stock split effective February 4, 2008.

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.

Izzo went on to say that “along with maintaining strong operations, we have completed the sale of the last of our large international assets (SAESA), and recognized a charge associated with our leveraged lease investments. These actions impact our discretionary cash position, but improve our business risk profile as demonstrated by Moody’s recent decision to maintain our credit ratings and improve our outlook to stable”.

Izzo announced that the Company’s Board of Directors has authorized the repurchase of up to $750 million of common stock during an 18 month period. “This authorization is recognition of the company’s solid financials and strong liquidity position. The repurchase of our shares may represent the best return for shareholders at this time as we seek to maintain our financial flexibility to pursue higher value opportunities as they become available.”

Izzo also reaffirmed operating earnings guidance for 2008 of $2.80-$3.05 per share, which represents an 8% improvement (at the mid-point of the range) over 2007’s operating earnings. “Strong operations and a largely contracted position continue to support our guidance -- all with a reduced risk profile.”

Operating earnings guidance by subsidiary for 2008 remains as follows:

2008 Operating Earnings Guidance

($millions)

 

 

 

2008

 
 

PSEG Power

 

$1,040 - $1,140

 

PSE&G

 

350 - 370

 

PSEG Energy Holdings

 

45 - 60

 

PSEG Parent

 

(15) - (10)

 

Operating Earnings

 

$1,420 - $1,560

 

Earnings Per Share

 

$2.80 - $3.05

 

While there may be some modest movements in the component parts, we expect full year consolidated results to be in these ranges.

Operating Earnings Review and Outlook by Operating Subsidiary

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

PSEG Power

PSEG Power reported operating earnings for the second quarter of 2008 of $240 million ($0.47 per share) compared to operating earnings of $187 million ($0.37 per share) in the second quarter of 2007.

PSEG Power’s margins in the second quarter of 2008 benefited from recontracting at higher prices in response to strong market fundamentals. These factors added $0.10 per share to earnings. Power’s earnings also benefited from mark-to-market gains on positions entered into earlier in the year to hedge exposure to natural gas ($0.08 per share). The gain is expected to reverse by year-end. A reduction in margin on the BGSS contract reduced earnings by $0.01 per share.

 

 

2

 

The nuclear fleet continues to run well, operating at a capacity factor of 90.5% during the second quarter and bringing the fleet’s year-to-date capacity factor to 92.3%. Salem 2, 57% owned and operated by PSEG Power, completed its refueling and steam generator replacement outage in 58 days returning to service on May 8. This ranked as the second shortest steam generator replacement outage in the history of the U.S. nuclear industry. The unit also saw an increase in nominal operating capacity upon its return to service. Also, we completed the Hope Creek extended power uprate of 125MW. Final performance testing on both of these units will be completed later this year.

Results for the quarter versus last year were impacted by scheduled outage work at several fossil stations – in particular, Hudson – to improve long-term reliability. This work resulted in an increase in operating and maintenance expense amounting to $0.04 per share. Earnings comparisons were also affected by higher depreciation expense ($0.01 per share); higher interest expense associated with an increase in collateral requirements ($0.01 per share) and a market - related decline in the value of some securities held by Power’s nuclear decommissioning trust fund ($0.01 per share).

Higher prices for energy and capacity compared to 2007 are expected to continue to support the forecast improvement in Power’s 2008 operating earnings. This improvement in pricing will be offset somewhat by higher fuel costs as well as an increase in operating and maintenance expense. The Mercer Station is scheduled to undergo a lengthy outage late in 2008 related to the addition of back-end technology to the units.

PSE&G

PSE&G reported operating earnings of $51 million ($0.10 per share) for the second quarter of 2008 compared with operating earnings of $62 million ($.12 per share) for the second quarter of 2007.

The results for the quarter were affected by a number of factors. A decline in demand for gas reduced earnings by $0.01 per share. A lower peak, due to a cooler summer in 2007, resulted in an expected decline in transmission revenues of $0.01 per share. Operating and maintenance expenses increased 1.8% this quarter, less than the rate of inflation. This increase reduced earnings by $0.01 per share.

These items were partially offset by lower depreciation and other items of $0.01 per share during the quarter.

PSE&G is expected to experience a modest decline in operating earnings for 2008. A forecast decline in transmission revenues due to the lower prior year peak will have an impact on revenue and earnings, as expected. Results will also reflect an increase in financing costs associated with higher capital outlays, and higher operating and maintenance expense associated with training programs supporting PSE&G’s delivery projects and construction program.

Earlier this month, PSE&G petitioned the Federal Energy Regulatory Commission (FERC) for formula rate treatment on its new and existing transmission investments to be effective on October 1, 2008. This petition followed approval by FERC earlier in the year for incentive rate treatment for the Susquehanna to Roseland line.

PSEG Energy Holdings

PSEG Energy Holdings reported operating earnings of $37 million ($0.08 per share) for the second quarter of 2008 versus operating earnings of $47 million ($0.09 per share) during the second quarter of 2007. Operating earnings exclude the lease related charges as well as the financial results of SAESA.

 

 

3

 

Holdings’ operating earnings for the quarter were largely influenced by the performance of Holdings’ Global subsidiary. Power prices are up and spark spreads have improved. The Texas generating units – in particular, Guadalupe –are benefiting from strong demand and higher prices. Higher volumes and stronger pricing added $0.06 per share to earnings. The increase in forward spark spreads in 2008’s second quarter, compared to the decline posted in the year ago period, led to mark-to-market losses in the second quarter which reduced earnings comparisons by $0.05 per share. Global’s earnings comparisons were also affected by international asset sales which closed during 2007. The absence of this income in 2008 reduced earnings comparisons by $0.03 per share.

The availability of Bioenergie in 2008 improved earnings comparisons by $0.02 per share in the second quarter. Lower financing costs also added $0.02 per share to earnings. A higher tax rate partially offset these gains reducing Global’s earnings comparisons by $0.03 per share.

Holdings’ subsidiary, PSEG Resources, reported a $0.01 per share improvement in quarterly earnings comparisons. The improvement was the result of a lower tax rate ($0.02 per share) which offset a decline in lease income ($0.01 per share).

PSEG Global closed on the sale of SAESA on July 24. The sale, which had a final equity value of $887 million plus the assumption of approximately $413 million of debt, resulted in an after-tax gain of $180 million which will be reported in discontinued operations in the third quarter. PSEG Global’s after-tax proceeds amount to approximately $600 million.

PSEG Energy Holdings’ operating earnings are expected to decline in 2008. The outlook reflects the loss of earnings from the sale of Chilquinta and Luz del Sur in 2007. The power markets in Texas are stronger than what was anticipated earlier in the year. High natural gas prices and demand are leading to higher spark spreads which is more than offsetting the impact of added wind resources in West Texas on the dispatch of natural gas-fired generating assets. Resources’ decision to recognize a substantial charge in the second quarter related to the IRS challenge of certain leveraged lease investments, however, will result in a decline of $30 million in Resources’ income during the second half of the year from prior expectations.

Leveraged Leases

There are several pending tax cases involving other taxpayers with leverage lease investments that are similar to Resources’. To date, two cases have been decided at the trial court level in favor of the government, and a third case involves a jury decision that is currently being contested. An appeal of one of these decisions was recently affirmed. Based on the status of discussions with the IRS and considering developments in other cases, PSEG currently anticipates that it will pay $300 million to $350 million in taxes, interest and penalties claimed by the IRS for the 1997-2000 audit cycle later in 2008, and subsequently commence litigation to recover a refund. As a result of these decisions, PSEG has re-evaluated its reserve levels and recorded a material charge of $490 million in the second quarter. The charge includes an after-tax increase of $135 million to the company’s interest reserve, and an after-tax charge of $355 million related to the recalculation of the return on the leases to take into account new assumptions on the timing of receipt of cash flow. This $355 million charge will be recognized as income over the remaining lives of the leases since total income from the leveraged leases is unaffected by changes in cash flow timing.

Discretionary Cash

PSEG’s current forecast reflects $2.5 billion of discretionary cash over 2008-2011 versus our prior forecast of $3.0 billion during this period. The revised figure reflects higher than originally forecast

 

 

4

 

payments of $900-$950 million in lease-related taxes during this time frame. This potential tax payment is consistent with our reserve. Our revised forecast also reflects an increase in funds from asset sales.

Share Repurchase

In July 2008 the Board of Directors of PSEG authorized the repurchase of up to $750 million of PSEG Common Stock during an 18 month period beginning August 1, 2008. The amount and timing of the stock repurchases will be based on various factors such as management’s assessment of business and market conditions, PSEG’s capital structure and liquidity, and management’s assessment of its ability to invest in attractive incremental growth opportunities.

* * * *

Conference Call Information: PSEG is hosting a conference call for investors on August 1, 2008 at 11 A.M. Eastern time. The call-in number is 800-954-0656; Passcode Number: 21388385. Members of the media are invited to participate on a listen only basis. The call will also be webcast on our investor site at www.pseg.com under the investor relations tab.

FORWARD-LOOKING STATEMENT

Readers are cautioned that statements contained in this press release about our and our subsidiaries’ future performance, including future revenues, earnings, strategies, prospects and all other statements that are not purely historical, are forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. Although we believe that our expectations are based on reasonable assumptions, we can give no assurance they will be achieved. The results or events predicted in these statements may differ materially from actual results or events. Factors which could cause results or events to differ from current expectations include, but are not limited to:

 

•

Adverse Changes in energy industry, policies and regulation, including market rules that may adversely affect our operating results.

 

•

Any inability of our energy transmission and distribution businesses to obtain adequate and timely rate relief and/or regulatory approvals from federal and/or state regulators.

 

•

Changes in federal and/or state environmental regulations that could increase our costs or limit operations of our generating units.

 

•

Changes in nuclear regulation and/or developments in the nuclear power industry generally, that could limit operations of our nuclear generating units.

 

•

Actions or activities at one of our nuclear units that might adversely affect our ability to continue to operate that unit or other units at the same site.

 

•

Any inability to balance our energy obligations, available supply and trading risks.

 

•

Any deterioration in our credit quality.

 

•

Any inability to realize anticipated tax benefits or retain tax credits.

 

•

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

 

•

Delays or cost escalations in our construction and development activities.

 

•

Adverse capital market performance of our decommissioning and defined benefit plan trust funds.

 

•

Changes in technology and/or increased customer conservation.

For further information, please refer to our Annual Report on Form 10-K, including item 1A. Risk Factors, and subsequent reports on Form 10-Q and Form 8-K filed with the Securities and Exchange Commission. These documents address in further detail our business, industry issues and other factors that could cause actual results to differ materially from those indicated in this release. In addition, any forward-looking statements included herein represent our estimates only as of today and should not be relied upon as representing our estimates as of any subsequent date. While we may elect to update forward-looking statements from time to time, we specifically disclaim any obligation to do so, even if our estimates change, unless otherwise required by applicable securities laws.

 

 

5

 

Attachment 1

PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED

Operating Earnings and Per Share Results by Subsidiary

(Unaudited)

 

 

 

 

For the Quarters Ended
June 30,

 

 

For the Six Months Ended
June 30,

 

 

 

 

 

 

 

 

2008

 

 

2007

 

 

2008

 

 

2007

 

 

 

 

 

 

 

Earnings Results (in Millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

PSEG Power

 

$

240

 

$

187

 

$

515

 

$

406

 

PSE&G

 

 

51

 

 

62

 

 

187

 

 

193

 

PSEG Energy Holdings

 

 

 

 

 

 

 

 

 

 

 

 

 

PSEG Global

 

 

18

 

 

33

 

 

33

 

 

6

 

PSEG Resources

 

 

20

 

 

15

 

 

34

 

 

31

 

PSEG Energy Holdings

 

 

(1

)

 

(1

)

 

(1

)

 

(1

)

 

 

Total PSEG Energy Holdings

 

 

37

 

 

47

 

 

66

 

 

36

 

 

 

PSEG

 

 

(4

)

 

(15

)

 

(9

)

 

(33

)

Operating Earnings

 

$

324

 

$

281

 

$

759

 

$

602

 

Reconciling Items (a)

 

 

(490

)

 

—

 

 

(491

)

 

—

 

Income (Loss) from Continuing Operations

 

$

(166

)

$

281

 

$

268

 

$

602

 

Discontinued Operations

 

 

16

 

 

(6

)

 

30

 

 

2

 

PSEG Net Income (Loss)

 

$

(150

)

$

275

 

$

298

 

$

604

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fully Diluted Average Shares Outstanding (in Millions)

 

 

509

 

 

508

 

 

509

 

 

507

 

Per Share Results (Diluted)

 

 

 

 

 

 

 

 

 

 

 

 

 

PSEG Power

 

$

0.47

 

$

0.37

 

$

1.01

 

$

0.80

 

PSE&G

 

 

0.10

 

 

0.12

 

 

0.37

 

 

0.38

 

PSEG Energy Holdings

 

 

 

 

 

 

 

 

 

 

 

 

 

PSEG Global

 

 

0.04

 

 

0.07

 

 

0.06

 

 

0.01

 

PSEG Resources

 

 

0.04

 

 

0.03

 

 

0.07

 

 

0.06

 

PSEG Energy Holdings

 

 

—

 

 

(0.01

)

 

—

 

 

—

 

 

 

Total PSEG Energy Holdings

 

 

0.08

 

 

0.09

 

 

0.13

 

 

0.07

 

 

 

PSEG

 

 

(0.01

)

 

(0.03

)

 

(0.02

)

 

(0.06

)

Operating Earnings

 

$

0.64

 

$

0.55

 

$

1.49

 

$

1.19

 

Reconciling Items (a)

 

 

(0.96

)

 

—

 

 

(0.96

)

 

—

 

Income (Loss) from Continuing Operations

 

$

(0.32

)

$

0.55

 

$

0.53

 

$

1.19

 

Discontinued Operations

 

 

0.03

 

 

(0.01

)

 

0.06

 

 

—

 

PSEG Net Income (Loss)

 

$

(0.29

)

$

0.54

 

$

0.59

 

$

1.19

 

(a)

See attachment 13 for details of items excluded from Continuing Operations to compute Operating Earnings.

Note 1:

Income from Continuing Operations includes preferred stock dividends relating to PSE&G of $1 million for the quarters ended June 30, 2008 and 2007.

Income from Continuing Operations includes preferred stock dividends relating to PSE&G of $2 million for the six months ended June 30, 2008 and 2007.

 

 

Attachment 2

PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED

Consolidating Statements of Operations

(Unaudited, $ Millions)

 

 

 

 

For the Quarter Ended June 30, 2008

 
         

 

 

 

PSEG

 

 

OTHER (a)

 

 

PSEG
POWER

 

 

PSE&G

 

 

PSEG ENERGY
HOLDINGS

 

 

 

 

 

 

 

 

OPERATING REVENUES

 

$

2,561

 

$

(691

)

$

1,623

 

$

1,858

 

$

(229

)

OPERATING EXPENSES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Energy Costs

 

 

1,540

 

 

(691

)

 

867

 

 

1,213

 

 

151

 

Operation and Maintenance (c)

 

 

623

 

 

(8

)

 

275

 

 

320

 

 

36

 

Depreciation and Amortization

 

 

193

 

 

3

 

 

41

 

 

139

 

 

10

 

Taxes Other Than Income Taxes

 

 

28

 

 

1

 

 

—

 

 

27

 

 

—

 

 

 

 

 

 

 

 

Total Operating Expenses

 

 

2,384

 

 

(695

)

 

1,183

 

 

1,699

 

 

197

 

 

 

 

 

 

 

 

Income from Equity Method Investments

 

 

8

 

 

—

 

 

—

 

 

—

 

 

8

 

 

 

 

 

 

 

 

OPERATING INCOME (LOSS)

 

 

185

 

 

4

 

 

440

 

 

159

 

 

(418

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Income and Deductions (d)

 

 

11

 

 

(2

)

 

6

 

 

2

 

 

5

 

Interest Expense

 

 

(147

)

 

(6

)

 

(41

)

 

(81

)

 

(19

)

Preferred Securities Dividends

 

 

(1

)

 

—

 

 

—

 

 

(1

)

 

—

 

 

 

 

 

 

 

 

INCOME (LOSS) FROM CONTINUING OPERATIONS
BEFORE INCOME TAXES (b)

 

 

48

 

 

(4

)

 

405

 

 

79

 

 

(432

)

Income Tax Expense

 

 

(214

)

 

—

 

 

(165

)

 

(28

)

 

(21

)

 

 

 

 

 

 

 

INCOME (LOSS) FROM CONTINUING OPERATIONS

 

 

(166

)

 

(4

)

 

240

 

 

51

 

 

(453

)

Discontinued Operations, net of tax

 

 

16

 

 

—

 

 

—

 

 

—

 

 

16

 

 

 

 

 

 

 

 

NET INCOME (LOSS)

 

$

(150

)

$

(4

)

$

240

 

$

51

 

$

(437

)

 

 

 

 

 

 

 

Discontinued Operations, net of tax

 

 

(16

)

 

—

 

 

—

 

 

—

 

 

(16

)

Reconciling Items, net of tax (e)

 

 

490

 

 

—

 

 

—

 

 

—

 

 

490

 

 

 

 

 

 

 

 

OPERATING EARNINGS

 

$

324

 

$

(4

)

 

$240

 

$

51

 

$

37

 

 

 

 

 

 

 

 

 

 

 

 

For the Quarter Ended June 30, 2007

 
         

 

 

 

PSEG

 

 

OTHER (a)

 

 

PSEG
POWER

 

 

PSE&G

 

 

PSEG ENERGY
HOLDINGS

 

 

 

 

 

 

 

 

OPERATING REVENUES

 

$

2,707

 

$

(582

)

$

1,305

 

$

1,748

 

$

236

 

OPERATING EXPENSES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Energy Costs

 

 

1,320

 

 

(583

)

 

694

 

 

1,077

 

 

132

 

Operation and Maintenance (c)

 

 

578

 

 

(7

)

 

241

 

 

314

 

 

30

 

Depreciation and Amortization

 

 

191

 

 

4

 

 

34

 

 

143

 

 

10

 

Taxes Other Than Income Taxes

 

 

30

 

 

—

 

 

—

 

 

30

 

 

—

 

 

 

 

 

 

 

 

Total Operating Expenses

 

 

2,119

 

 

(586

)

 

969

 

 

1,564

 

 

172

 

 

 

 

 

 

 

 

Income from Equity Method Investments

 

 

26

 

 

—

 

 

—

 

 

—

 

 

26

 

 

 

 

 

 

 

 

OPERATING INCOME (LOSS)

 

 

614

 

 

4

 

 

336

 

 

184

 

 

90

 

Other Income and Deductions (d)

 

 

21

 

 

(7

)

 

21

 

 

4

 

 

3

 

Interest Expense

 

 

(182

)

 

(23

)

 

(39

)

 

(84

)

 

(36

)

Preferred Securities Dividends

 

 

(1

)

 

—

 

 

—

 

 

(1

)

 

—

 

 

 

 

 

 

 

 

INCOME (LOSS) FROM CONTINUING OPERATIONS
BEFORE INCOME TAXES (b)

 

 

452

 

 

(26

)

 

318

 

 

103

 

 

57

 

Income Tax (Expense) Benefit

 

 

(171

)

 

11

 

 

(131

)

 

(41

)

 

(10

)

 

 

 

 

 

 

 

INCOME (LOSS) FROM CONTINUING OPERATIONS

 

 

281

 

 

(15

)

 

187

 

 

62

 

 

47

 

Discontinued Operations, net of tax

 

 

(6

)

 

—

 

 

(3

)

 

—

 

 

(3

)

 

 

 

 

 

 

 

NET INCOME (LOSS)

 

$

275

 

$

(15

)

$

184

 

$

62

 

$

44

 

 

 

 

 

 

 

 

Discontinued Operations, net of tax

 

 

6

 

 

—

 

 

3

 

 

—

 

 

3

 

 

 

 

 

 

 

 

OPERATING EARNINGS

 

$

281

 

$

(15

)

$

187

 

$

62

 

$

47

 

 

 

 

 

 

 

 

(a)

Primarily includes financing activities and donations at the parent and intercompany eliminations.

(b)

Income from Continuing Operations before Income Taxes includes preferred stock dividends relating to PSE&G of $1 million for the quarters ended June 30, 2008 and 2007.

(c)

Increase at PSE&G primarily due to increased SBC expenses due to increased collection of clause revenues.

(d)

Other Income and Deductions includes minority interest of $0 million and $2 million relating to Energy Holdings for the quarters ended June 30, 2008 and 2007, respectively.

(e)

See attachment 13 for details of items excluded from Continuing Operations to compute Operating Earnings.

 

 

Attachment 3

PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED

Consolidating Statements of Operations

(Unaudited, $ Millions)

 

 

 

 

 

 

For the Six Months Ended June 30, 2008

 

 
                         

 

 

PSEG

 

OTHER (a)

 

PSEG
POWER

 

PSE&G

 

PSEG ENERGY
HOLDINGS

 

 

 

 

 

 

 

 

 

 

OPERATING REVENUES

 

$

6,364

 

$

(2,023

)

$

3,998

 

$

4,476

 

$

(87

)

OPERATING EXPENSES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Energy Costs

 

 

3,664

 

 

(2,022

)

 

2,456

 

 

3,006

 

 

224

 

Operation and Maintenance (c)

 

 

1,254

 

 

(14

)

 

514

 

 

680

 

 

74

 

Depreciation and Amortization

 

 

387

 

 

7

 

 

79

 

 

282

 

 

19

 

Taxes Other Than Income Taxes

 

 

71

 

 

1

 

 

—

 

 

70

 

 

—

 

 

 

 

 

 

 

 

Total Operating Expenses

 

 

5,376

 

 

(2,028

)

 

3,049

 

 

4,038

 

 

317

 

 

 

 

 

 

 

 

Income from Equity Method Investments

 

 

20

 

 

—

 

 

—

 

 

—

 

 

20

 

 

 

 

 

 

 

 

OPERATING INCOME (LOSS)

 

 

1,008

 

 

5

 

 

949

 

 

438

 

 

(384

)

Other Income and Deductions (d)

 

 

10

 

 

(5

)

 

1

 

 

6

 

 

8

 

Interest Expense

 

 

(300

)

 

(12

)

 

(83

)

 

(162

)

 

(43

)

Preferred Securities Dividends

 

 

(2

)

 

—

 

 

—

 

 

(2

)

 

—

 

 

 

 

 

 

 

 

INCOME (LOSS) FROM CONTINUING OPERATIONS
BEFORE INCOME TAXES (b)

 

 

716

 

 

(12

)

 

867

 

 

280

 

 

(419

)

Income Tax (Expense) Benefit

 

 

(448

)

 

3

 

 

(352

)

 

(93

)

 

(6

)

 

 

 

 

 

 

 

INCOME (LOSS) FROM CONTINUING OPERATIONS

 

 

268

 

 

(9

)

 

515

 

 

187

 

 

(425

)

Discontinued Operations, net of tax

 

 

30

 

 

—

 

 

—

 

 

—

 

 

30

 

 

 

 

 

 

 

 

NET INCOME (LOSS)

 

$

298

 

$

(9

)

$

515

 

$

187

 

$

(395

)

 

 

 

 

 

 

 

Discontinued Operations, net of tax

 

 

(30

)

 

—

 

 

—

 

 

—

 

 

(30

)

Reconciling Items, net of tax (e)

 

 

491

 

 

—

 

 

—

 

 

—

 

 

491

 

 

 

 

 

 

 

 

OPERATING EARNINGS

 

$

759

 

$

(9

)

$

515

 

$

187

 

$

66

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Six Months Ended June 30, 2007

 
                       

 

 

PSEG

 

OTHER (a)

 

PSEG
POWER

 

PSE&G

 

PSEG ENERGY
HOLDINGS

 

 

 

 

 

 

 

 

OPERATING REVENUES

 

$

6,215

 

$

(1,857

)

$

3,454

 

$

4,234

 

$

384

 

 

OPERATING EXPENSES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Energy Costs

 

 

3,297

 

 

(1,855

)

 

2,182

 

 

2,742

 

 

228

 

 

Operation and Maintenance (c)

 

 

1,173

 

 

(13

)

 

479

 

 

639

 

 

68

 

 

Depreciation and Amortization

 

 

383

 

 

7

 

 

68

 

 

288

 

 

20

 

 

Taxes Other Than Income Taxes

 

 

73

 

 

—

 

 

—

 

 

73

 

 

—

 

 

 

 

 

 

 

 

 

 

Total Operating Expenses

 

 

4,926

 

 

(1,861

)

 

2,729

 

 

3,742

 

 

316

 

 

 

 

 

 

 

 

 

 

Income from Equity Method Investments

 

 

53

 

 

—

 

 

—

 

 

—

 

 

53

 

 

 

 

 

 

 

 

 

 

OPERATING INCOME (LOSS)

 

 

1,342

 

 

4

 

 

725

 

 

492

 

 

121

 

 

Other Income and Deductions (d)

 

 

57

 

 

(11

)

 

43

 

 

8

 

 

17

 

 

Interest Expense

 

 

(364

)

 

(48

)

 

(76

)

 

(165

)

 

(75

)

 

Preferred Securities Dividends

 

 

(2

)

 

—

 

 

—

 

 

(2

)

 

—

 

 

 

 

 

 

 

 

 

 

INCOME (LOSS) FROM CONTINUING OPERATIONS
BEFORE INCOME TAXES (b)

 

 

1,033

 

 

(55

)

 

692

 

 

333

 

 

63

 

 

Income Tax (Expense) Benefit

 

 

(431

)

 

22

 

 

(286

)

 

(140

)

 

(27

)

 

 

 

 

 

 

 

 

 

INCOME (LOSS) FROM CONTINUING OPERATIONS

 

 

602

 

 

(33

)

 

406

 

 

193

 

 

36

 

 

Discontinued Operations, net of tax

 

 

2

 

 

—

 

 

(9

)

 

—

 

 

11

 

 

 

 

 

 

 

 

 

 

NET INCOME (LOSS)

 

$

604

 

$

(33

)

$

397

 

$

193

 

$

47

 

 

 

 

 

 

 

 

 

 

Discontinued Operations, net of tax

 

 

(2

)

 

—

 

 

9

 

 

—

 

 

(11

)

 

 

 

 

 

 

 

 

 

OPERATING EARNINGS

 

$

602

 

$

(33

)

$

406

 

$

193

 

$

36

 

 

 

 

 

 

 

 

 

 

(a) Primarily includes financing activities and donations at the parent and intercompany eliminations.

(b) Income from Continuing Operations before Income Taxes includes preferred stock dividends relating to PSE&G of $2 million for the six months ended June 30, 2008 and 2007.

(c) Increase at PSE&G primarily due to increased SBC expenses due to increased collection of clause revenues.

(d) Other Income and Deductions includes minority interest of $0 million and $2 million relating to Energy Holdings for the six months ended June 30, 2008 and 2007, respectively.

(e) See attachment 13 for details of items excluded from Continuing Operations to compute Operating Earnings.

 

 

Attachment 4

PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED

Capitalization Schedule

(Unaudited, $ Millions)

 

 

 

June 30,
2008

 

December 31,
2007

 

 

 

 

 

DEBT

 

 

 

 

 

 

 

Commercial Paper and Loans

 

$

919

 

$

65

 

Long-Term Debt (a)

 

 

7,125

 

 

7,690

 

Securitization Debt (a)

 

 

1,626

 

 

1,708

 

Project Level, Non-Recourse Debt (a)

 

 

365

 

 

387

 

 

 

 

 

Total Debt

 

 

10,035

 

 

9,850

 

SUBSIDIARY’S PREFERRED SECURITIES

 

 

80

 

 

80

 

 

 

 

 

COMMON STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

Common Stock

 

 

4,748

 

 

4,732

 

Treasury Stock

 

 

(487

)

 

(478

)

Retained Earnings

 

 

3,209

 

 

3,261

 

Accumulated Other Comprehensive Loss

 

 

(896

)

 

(216

)

 

 

 

 

Total Common Stockholders’ Equity

 

 

6,574

 

 

7,299

 

 

 

 

 

Total Capitalization

 

$

16,689

 

$

17,229

 

 

 

 

 

(a) Includes amounts due within one year

Note 1:

PSEG’s credit agreements contain covenants that require PSEG's debt to capitalization ratio not to exceed 70.0% at any time.

This ratio is presented for the benefit of the investors and the related securities to which the covenants apply and is not intended as a financial performance or liquidity measure.

2008

The debt to capitalization ratio calculated under PSEG's credit agreements as of June 30, 2008 was 51.4%.

The ratio as calculated pursuant to these covenants excludes non-recourse project debt ($365 million) and securitization debt ($1.626 billion). It also includes capital lease obligations ($45 million) and certain other obligations such as guarantees and letters of credit ($50 million), excluding any letters of credit related to collateral posting on energy/commodity contracts. The calculation excludes the equity reduction ($161 million) from the funded status of the pension and benefit plans associated with FAS 158 "Employers' Accounting for Defined Pension and Other Post-Retirement Plans” and excludes the Accumulated Other Comprehensive Loss ($870 million) related to the mark-to-market of energy contracts.

2007

The debt to capitalization ratio calculated under PSEG's credit agreements as of December 31, 2007 was 49.9%.

The ratio as calculated pursuant to these covenants excludes non-recourse project debt ($387 million), securitization debt ($1.708 billion). It also includes capital lease obligations ($47 million) and certain other obligations such as guarantees and letters of credit ($55 million), excluding any letters of credit related to collateral posting on energy/commodity contracts. The calculation excludes the equity reduction ($167 million) from the funded status of the pension and benefit plans associated with FAS 158 “Employers’ Accounting for Defined Pension and Other Post-Retirement Plans” and excludes the Accumulated Other Comprehensive Loss ($250 million) related to the mark-to-market of energy contracts.

 

 

Attachment 5

PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited, $ Millions)

 

 

 

For the Six Months Ended June 30,

 

 

2008

 

2007

 

 

 

CASH FLOWS FROM OPERATING ACTIVITIES

 

 

 

 

 

 

 

 

Net Income

 

$

298

 

 

$

604

 

Adjustments to Reconcile Net Income to Net Cash Flows (a)

 

 

 

 

 

 

 

 

From Operating Activities

 

 

326

 

 

 

180

 

 

 

 

 

 

Net Cash Provided By Operating Activities

 

 

624

 

 

 

784

 

 

 

 

 

 

NET CASH USED IN INVESTING ACTIVITIES

 

 

(702

)

 

 

(261

)

 

 

 

 

 

NET CASH USED IN FINANCING ACTIVITIES

 

 

(218

)

 

 

(490

)

 

 

 

 

 

Effect of Exchange Rate Change

 

 

1

 

 

 

—

 

 

 

 

 

 

Net Increase (Decrease) in Cash and Cash Equivalents

 

 

(295

)

 

 

33

 

Cash and Cash Equivalents at Beginning of Period

 

 

381

 

 

 

106

 

 

 

 

 

 

Cash and Cash Equivalents at End of Period

 

$

86

 

 

$

139

 

 

 

 

 

 

(a) Includes changes in working capital of ($584 million) and ($282 million) for 2008 and 2007, respectively.

Changes in 2008 working capital are attributable to:

 

•

Increased broker margins at PSEG Power.

 

•

Increased prepaid taxes, partially offset by increased obligation to return cash collateral due to higher BGS at PSE&G.

 

•

Increased PSEG Texas accounts receivable for sales and cash payments related to 2007 asset sales at PSEG Energy Holdings.

 

 

Attachment 6

PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED

Quarter-to-Quarter EPS Reconciliation

June 30, 2008 vs. June 30, 2007

(Unaudited)

 

PSEG 2nd Quarter 2007 Net Income (Loss)

 

 

 

 

 

 

 

 

$

0.54

 

Discontinued Operations

 

 

 

 

 

 

 

 

 

(0.01

)

PSEG 2nd Quarter 2007 Income (Loss) from Continuing Operations

 

 

 

 

 

 

 

 

$

0.55

 

Reconciling Items (a)

 

 

 

 

 

 

 

 

 

—

 

PSEG 2nd Quarter 2007 Operating Earnings

 

 

 

 

 

 

 

 

$

0.55

 

 

 

 

 

 

 

 

 

 

 

B/(W

)

 

 

 

 

 

 

 

 

 

 

PSEG Power

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2nd Quarter 2007

 

 

 

 

$

0.37

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Recontracting and Strong Markets

 

0.10

 

 

 

 

 

 

 

 

 

BGSS

 

(0.01

)

 

 

 

 

 

 

 

 

Mark-to-Market (MTM)

 

0.08

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Margin

 

 

 

 

 

0.17

 

 

 

 

 

O&M

 

 

 

 

 

(0.04

)

 

 

 

 

Depreciation, Interest and NDT

 

 

 

 

 

(0.03

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2nd Quarter 2008

 

 

 

 

$

0.47

 

 

$

0.10

 

 

 

 

 

 

 

 

 

 

 

PSE&G

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2nd Quarter 2007

 

 

 

 

$

0.12

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gas Margin

 

 

 

 

 

(0.01

)

 

 

 

 

Transmission

 

 

 

 

 

(0.01

)

 

 

 

 

O&M

 

 

 

 

 

(0.01

)

 

 

 

 

Depreciation, Taxes, and Other

 

 

 

 

 

0.01

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2nd Quarter 2008

 

 

 

 

$

0.10

 

 

$

(0.02

)

 

 

 

 

 

 

 

 

 

 

PSEG Energy Holdings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2nd Quarter 2007

 

 

 

 

$

0.09

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Global - Texas Generation Facilities - Operations $0.06, MTM ($0.05)

 

 

 

 

 

0.01

 

 

 

 

 

Global - Bioenergie (Italy)

 

 

 

 

 

0.02

 

 

 

 

 

Global - Interest Expense

 

 

 

 

 

0.02

 

 

 

 

 

Global - Effective Tax Rate

 

 

 

 

 

(0.03

)

 

 

 

 

Global - Earnings on Chilquinta & Luz

 

 

 

 

 

(0.03

)

 

 

 

 

Global - Other Operations

 

 

 

 

 

(0.02

)

 

 

 

 

Resources - Effective Tax Rate

 

 

 

 

 

0.02

 

 

 

 

 

Resources - Lease Income

 

 

 

 

 

(0.01

)

 

 

 

 

Holdings Parent

 

 

 

 

 

0.01

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2nd Quarter 2008

 

 

 

 

$

0.08

 

 

$

(0.01

)

 

 

 

 

 

 

 

 

 

 

Public Service Enterprise Group

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2nd Quarter 2007

 

 

 

 

$

(0.03

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest

 

 

 

 

 

0.02

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2nd Quarter 2008

 

 

 

 

$

(0.01

)

 

$

0.02

 

 

 

 

 

 

 

 

 

 

 

PSEG 2nd Quarter 2008 Operating Earnings

 

 

 

 

 

 

 

 

$

0.64

 

Reconciling Items (a)

 

 

 

 

 

 

 

 

 

(0.96

)

PSEG 2nd Quarter 2008 Income (Loss) from Continuing Operations

 

 

 

 

 

 

 

 

$

(0.32

)

Discontinued Operations

 

 

 

 

 

 

 

 

 

0.03

 

PSEG 2nd Quarter 2008 Net Income (Loss)

 

 

 

 

 

 

 

 

$

(0.29

)

(a) See attachment 13 for details of items excluded from Continuing Operations to compute Operating Earnings.

 

 

Attachment 7

PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED

Year to Date EPS Reconciliation

June 30, 2008 vs. June 30, 2007

(Unaudited)

 

PSEG Net Income (Loss) for the Six Months Ended June 30, 2007  

 

 

 

 

 

 

 

$

1.19

 

Discontinued Operations

 

 

 

 

 

 

 

 

—

 

PSEG Income (Loss) from Continuing Operations for the Six Months Ended June 30, 2007  

 

 

 

 

 

 

 

$

1.19

 

Reconciling Items (a)

 

 

 

 

 

 

 

 

—

 

PSEG Operating Earnings for the Six Months Ended June 30, 2007

 

 

 

 

 

 

 

$

1.19

 

 

 

 

 

 

 

 

 

 

B/(W

)

PSEG Power

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year to Date June 30, 2007

 

 

 

 

$

0.80

 

 

 

 

 

 

 

 

 

 

 

 

 

Recontracting and Strong Markets

 

 

0.24

 

 

 

 

 

 

 

BGSS

 

 

(0.01

)

 

 

 

 

 

 

Mark-to-Market (MTM)

 

 

0.09

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Margin

 

 

 

 

 

0.32

 

 

 

 

O&M

 

 

 

 

 

(0.04

)

 

 

 

Depreciation, Interest and NDT

 

 

 

 

 

(0.07

)

 

 

 

 

 

 

 

 

 

 

 

 

Year to Date June 30, 2008

 

 

 

 

$

1.01

 

$

0.21

 

 

 

 

 

 

 

 

 

 

PSE&G

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year to Date June 30, 2007

 

 

 

 

$

0.38

 

 

 

 

 

 

 

 

 

 

 

 

 

Weather - Gas

 

 

 

 

 

(0.02

)

 

 

 

Gas Margin

 

 

 

 

 

(0.01

)

 

 

 

Transmission

 

 

 

 

 

(0.01

)

 

 

 

O&M

 

 

 

 

 

(0.02

)

 

 

 

Depreciation

 

 

 

 

 

(0.01

)

 

 

 

Effective Tax Rate

 

 

 

 

 

0.06

 

 

 

 

 

 

 

 

 

 

 

 

 

Year to Date June 30, 2008

 

 

 

 

$

0.37

 

$

(0.01

)

 

 

 

 

 

 

 

 

 

PSEG Energy Holdings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year to Date June 30, 2007

 

 

 

 

$

0.07

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Global - Texas Generation Facilities - Operations $0.06, MTM ($0.01)

 

 

 

 

 

0.05

 

 

 

 

Global - Interest Expense

 

 

 

 

 

0.04

 

 

 

 

Global - Effective Tax Rate

 

 

 

 

 

0.03

 

 

 

 

Global - Bioenergie (Italy)

 

 

 

 

 

0.02

 

 

 

 

Global - Earnings on Chilquinta & Luz

 

 

 

 

 

(0.05

)

 

 

 

Global - Other Operations

 

 

 

 

 

(0.02

)

 

 

 

Global - Gain on Sale of Tracy in 2007

 

 

 

 

 

(0.01

)

 

 

 

Global - Konya-Ilgin Settlement in 2007

 

 

 

 

 

(0.01

)

 

 

 

Resources - Effective Tax Rate

 

 

 

 

 

0.03

 

 

 

 

Resources - Lease Income

 

 

 

 

 

(0.01

)

 

 

 

Resources - CBO Settlement in 2007

 

 

 

 

 

(0.01

)

 

 

 

 

 

 

 

 

 

 

 

 

Year to Date June 30, 2008

 

 

 

 

$

0.13

 

$

0.06

 

 

 

 

 

 

 

 

 

 

Public Service Enterprise Group

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year to Date June 30, 2007

 

 

 

 

$

(0.06

)

 

 

 

 

 

 

 

 

 

 

 

 

Interest

 

 

 

 

 

0.04

 

 

 

 

 

 

 

 

 

 

 

 

 

Year to Date June 30, 2008

 

 

 

 

$

(0.02

)

$

0.04

 

 

 

 

 

 

 

 

 

 

PSEG Operating Earnings for the Six Months Ended June 30, 2008

 

 

 

 

 

 

 

$

1.49

 

Reconciling Items (a)

 

 

 

 

 

 

 

 

(0.96

)

PSEG Income (Loss) from Continuing Operations for the Six Months Ended June 30, 2008

 

 

 

 

 

 

 

$

0.53

 

Discontinued Operations

 

 

 

 

 

 

 

 

0.06

 

PSEG Net Income (Loss) for the Six Months Ended June 30, 2008

 

 

 

 

 

 

 

$

0.59

 

(a) See attachment 13 for details of items excluded from Continuing Operations to compute Operating Earnings.

 

Attachment 8

 

     

PSEG Power
Generation Measures
(Unaudited)

        

 

 

 

GWhr Breakdown

 

 

GWhr Breakdown

 

 

 

 

 

 

 

 

 

 

 

 

Quarters Ended

 

 

Six Months Ended

 

 

 

 

June 30,

 

 

June 30,

 

 

 

 

2008

 

 

2007

 

 

2008

 

 

2007

 

 

 

 

 

Nuclear - NJ

 

 

4,573

 

 

4,504

 

 

9,409

 

 

9,514

 

Nuclear - PA

 

 

2,459

 

 

2,454

 

 

4,887

 

 

4,900

 

 

 

 

 

 

 

 

Total Nuclear

 

 

7,032

 

 

6,958

 

 

14,296

 

 

14,414

 

Fossil - Coal - NJ

 

 

831

 

 

939

 

 

2,173

 

 

2,037

 

Fossil - Coal - PA

 

 

1,473

 

 

1,380

 

 

3,051

 

 

2,675

 

Fossil - Coal - CT

 

 

619

 

 

692

 

 

1,390

 

 

1,475

 

 

 

 

 

 

 

 

Total Coal

 

 

2,923

 

 

3,011

 

 

6,614

 

 

6,187

 

Fossil - Oil & Natural Gas - NJ

 

 

2,818

 

 

1,798

 

 

5,145

 

 

3,214

 

Fossil - Oil & Natural Gas - NY

 

 

809

 

 

790

 

 

1,185

 

 

1,413

 

Fossil - Oil & Natural Gas - CT

 

 

21

 

 

93

 

 

96

 

 

366

 

 

 

 

 

 

 

 

Total Oil & Natural Gas

 

 

3,648

 

 

2,681

 

 

6,426

 

 

4,993

 

Fossil - Pumped Storage

 

 

(34

)

 

(34

)

 

(68

)

 

(68

)

 

 

 

 

 

 

 

 

 

13,569

 

 

12,616

 

 

27,268

 

 

25,526

 

 

 

 

 

 

 
                           

 

 

 

% Generation by Fuel Type

 

 

% Generation by Fuel Type

 

 

 

 

 

 

 

 

 

 

 

 

Quarters Ended

 

 

Six Months Ended

 

 

 

 

June 30,

 

 

June 30,

 

 

 

 

2008

 

 

2007

 

 

2008

 

 

2007

 

 

 

 

Nuclear - NJ

 

 

34

%

 

36

%

 

35

%

 

37

%

Nuclear - PA

 

 

18

%

 

19

%

 

18

%

 

19

%

 

 

 

 

 

 

Total Nuclear

 

 

52

%

 

55

%

 

53

%

 

56

%

Fossil - Coal - NJ

 

 

6

%

 

7

%

 

8

%

 

8

%

Fossil - Coal - PA

 

 

11

%

 

11

%

 

11

%

 

10

%

Fossil - Coal - CT

 

 

4

%

 

6

%

 

5

%

 

6

%

 

 

 

 

 

 

Total Coal

 

 

21

%

 

24

%

 

24

%

 

24

%

Fossil - Oil & Natural Gas - NJ

 

 

21

%

 

14

%

 

19

%

 

13

%

Fossil - Oil & Natural Gas - NY

 

 

6

%

 

6

%

 

4

%

 

6

%

Fossil - Oil & Natural Gas - CT

 

 

0

%

 

1

%

 

0

%

 

1

%

 

 

 

 

 

 

Total Oil & Natural Gas

 

 

27

%

 

21

%

 

23

%

 

20

%

Fossil - Pumped Storage

 

 

0

%

 

0

%

 

0

%

 

0

%

 

 

 

 

 

 

 

 

100

%

 

100

%

 

100

%

 

100

%

 

 

 

 

 

 

 

 

Attachment 9A

PUBLIC SERVICE ELECTRIC & GAS

Retail Sales and Revenues

(Unaudited)

June 30, 2008

Electric Sales and Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales (millions kwh)

 

Quarter Ended

 

Change vs.
2007

 

Quarter Ended Weather
Normalized

 

Change vs.
2007

 

Six Months
Ended

 

Change vs.
2007

 

Six Months Ended Weather
Normalized

 

Change vs.
2007

 

Residential

 

 

3,109

 

-1.4%

 

3,057

 

-2.7%

 

 

6,306

 

-1.4%

 

6,325

 

-0.6%

 

Commercial

 

 

5,963

 

-1.7%

 

5,940

 

-2.0%

 

 

11,989

 

0.2%

 

11,995

 

0.4%

 

Industrial

 

 

1,269

 

-8.2%

 

1,267

 

-8.4%

 

 

2,543

 

-5.1%

 

2,543

 

-5.1%

 

Street Lighting

 

 

78

 

1.5%

 

78

 

0.0%

 

 

181

 

1.3%

 

181

 

0.0%

 

Interdepartmental

 

 

3

 

-1.5%

 

3

 

0.0%

 

 

7

 

-3.6%

 

7

 

0.0%

 

Total

 

 

10,422

 

-2.5%

 

10,345

 

-3.0%

 

 

21,026

 

-1.0%

 

21,050

 

-0.6%

 

Revenue (in millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential

 

$

476

 

8.3%

 

 

 

 

 

$

932

 

8.9%

 

 

 

 

 

Commercial

 

 

684

 

7.8%

 

 

 

 

 

 

1,260

 

9.4%

 

 

 

 

 

Industrial

 

 

87

 

1.9%

 

 

 

 

 

 

162

 

3.9%

 

 

 

 

 

Street Lighting

 

 

17

 

4.7%

 

 

 

 

 

 

37

 

5.2%

 

 

 

 

 

Other Operating Revenues

 

 

124

 

48.4%

 

 

 

 

 

 

214

 

35.2%

 

 

 

 

 

Total

 

$

1,388

 

10.2%

 

 

 

 

 

$

2,605

 

10.5%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weather Data

 

 

Quarter
Ended

 

Change vs.
2007

 

 

 

 

 

 

Six Months
Ended

 

Change vs.
2007

 

 

 

 

 

THI Hours - Actual

 

 

4,007

 

4.1%

 

 

 

 

 

 

4,007

 

2.8%

 

 

 

 

 

THI Hours - Normal

 

 

3,832

 

 

 

 

 

 

 

 

3,870

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Attachment 9B

PUBLIC SERVICE ELECTRIC & GAS

Retail Sales and Revenues

(Unaudited)

June 30, 2008

Gas Sold and Transported

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales (millions therms)

 

 

Quarter
Ended

 

Change vs.
2007

 

Quarter
Ended
Weather
Normalized

 

Change vs.
2007

 

 

Six Months
Ended

 

Change vs.
2007

 

Six Months
Ended
Weather
Normalized

 

Change vs.
2007

 

Residential Sales

 

 

175

 

-15.8%

 

180

 

-8.2%

 

 

828

 

-7.8%

 

862

 

-1.5%

 

Commercial - Firm Sales

 

 

63

 

-19.3%

 

65

 

-14.3%

 

 

300

 

-9.7%

 

311

 

-4.0%

 

Commercial - Interr. & Cogen

 

 

9

 

-7.5%

 

9

 

-7.5%

 

 

25

 

11.9%

 

25

 

11.9%

 

Industrial - Firm Sales

 

 

5

 

-19.0%

 

5

 

-14.0%

 

 

24

 

-9.2%

 

25

 

-3.4%

 

Industrial - Interr. & Cogen

 

 

42

 

19.9%

 

42

 

19.9%

 

 

104

 

104.5%

 

104

 

104.5%

 

Interdepartmental

 

 

-

 

-26.9%

 

-

 

-26.9%

 

 

1

 

-32.7%

 

1

 

-32.7%

 

Total

 

 

294

 

-12.7%

 

301

 

-10.0%

 

 

1,282

 

-3.7%

 

1,328

 

-2.2%

 

Gas Transported - Firm Sales

 

 

76

 

-8.5%

 

77

 

-6.0%

 

 

260

 

-1.1%

 

266

 

2.7%

 

Gas Transported - Non-Firm

 

 

187

 

-5.6%

 

187

 

-5.6%

 

 

387

 

2.6%

 

387

 

2.6%

 

Revenue (in millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential Sales

 

$

161

 

-15.8%

 

 

 

 

 

$

759

 

-7.8%

 

 

 

 

 

Commercial - Firm Sales

 

 

82

 

8.6%

 

 

 

 

 

 

321

 

6.3%

 

 

 

 

 

Commercial - Interr. & Cogen

 

 

10

 

23.9%

 

 

 

 

 

 

27

 

33.0%

 

 

 

 

 

Industrial - Firm Sales

 

 

6

 

8.3%

 

 

 

 

 

 

26

 

6.5%

 

 

 

 

 

Industrial - Interr. & Cogen

 

 

53

 

73.2%

 

 

 

 

 

 

116

 

148.2%

 

 

 

 

 

Other Operating Revenues

 

 

32

 

-11.4%

 

 

 

 

 

 

65

 

-6.4%

 

 

 

 

 

Total

 

$

344

 

-0.8%

 

 

 

 

 

$

1,313

 

2.2%

 

 

 

 

 

Gas Transported

 

 

126

 

-11.0%

 

 

 

 

 

 

558

 

-5.7%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weather Data

 

 

Quarter
Ended

 

Change vs.
2007

 

 

 

 

 

 

Six Months
Ended

 

Change vs.
2007

 

 

 

 

 

Degree Days - Actual

 

 

475

 

-13.5%

 

 

 

 

 

 

2,897

 

-8.4%

 

 

 

 

 

Degree Days - Normal

 

 

519

 

 

 

 

 

 

 

 

3,111

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Attachment 10

PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED

Statistical Measures

(Unaudited)

 

 

 

For the Quarters Ended

 

For the Six Months Ended

 

 

June 30

 

June 30

 

 

 

2008

 

 

2007

 

 

2008

 

 

2007

Weighted Average Common Shares Outstanding (000’s)

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

508,491

 

 

507,261

 

 

508,491

 

 

506,526

Diluted

 

 

509,487

 

 

508,067

 

 

509,483

 

 

507,393

Stock Price at End of Period

 

 

 

 

 

 

 

$

45.93

 

$

43.89

Dividends Paid per Share of Common Stock

 

$

0.3225

 

$

0.2925

 

$

0.6450

 

$

0.5850

Dividend Payout Ratio*

 

 

 

 

 

 

 

 

40.9%

 

 

52.7%

Dividend Yield

 

 

 

 

 

 

 

 

2.7%

 

 

2.6%

Price/Earnings Ratio*

 

 

 

 

 

 

 

 

15.3

 

 

20.0

Rate of Return on Average Common Equity*

 

 

 

 

 

 

 

 

21.7%

 

 

16.5%

Book Value per Common Share

 

 

 

 

 

 

 

$

12.93

 

$

13.47

Market Price as a Percent of Book Value

 

 

 

 

 

 

 

 

355%

 

 

326%

Total Shareholder Return

 

 

15.1%

 

 

6.4%

 

 

-5.2%

 

 

34.2%

*Calculation based on Operating Earnings for 12 month period ended

 

 

Attachment 11

PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED

Non-Trading Mark-to-Market

(Unaudited)

June 30, 2008

2008 Non-Trading Mark-to-Market

Energy Positions

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-

 

In Millions After-Tax

 

Q1

 

Q2

 

Q3

 

Q4

 

Date

 

Power

 

$

2.7

 

$

27.1

 

 

 

 

 

$

29.8

 

Holdings

 

 

1.8

 

 

(13.1

)

 

 

 

 

 

(11.3

)

Total

 

$

4.5

 

$

14.0

 

 

 

 

 

$

18.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-

 

EPS Impact

 

Q1

 

Q2

 

Q3

 

Q4

 

Date

 

Power

 

$

0.01

 

$

0.05

 

 

 

 

 

$

0.06

 

Holdings

 

 

-

 

 

(0.02

)

 

 

 

 

 

(0.02

)

Total

 

$

0.01

 

$

0.03

 

 

 

 

 

$

0.04

 

2007 Non-Trading Mark-to-Market

Energy Positions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to- 

In Millions After-Tax

 

Q1

 

Q2

 

Q3

 

 

Q4

 

 

Date 

Power

 

$

(0.6

)

$

(9.5

)

$

4.4

 

$

(0.4

)

  

$

(6.2

)

Holdings

 

 

(19.0

)

 

16.4

 

 

13.2

 

 

5.5

 

  

 

16.1

 

Total

 

$

(19.6

)

$

6.9

 

$

17.6

 

$

5.0

 

  

$

9.9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-

EPS Impact

 

Q1

 

Q2

 

Q3

 

 

Q4

 

 

Date 

Power

 

$

-

 

$

(0.02

)

$

0.01

 

$

-

 

  

$

(0.01

)

Holdings

 

 

(0.04

)

 

0.03

 

 

0.03

 

 

0.01

 

  

 

0.03

 

Total

 

$

(0.04

)

$

0.01

 

$

0.04

 

$

0.01

 

  

$

0.02

 

 

 

Attachment 12

PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED

PSEG Liquidity

(Unaudited, $ Millions)

 

PSEG Liquidity as of June 30, 2008

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Company

 

Facility

 

Expiration
Date

 

 

Total
Facility

 

Primary Purpose

 

 

Usage at
06/30/2008

 

 

Available
Liquidity
06/30/2008

PSEG

 

5-year Credit Facility

 

Dec-12

 

$

1,047

1

CP Support /Funding/LCs

 

$

839

 

$

208

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Bilateral Credit Facility

 

Jun-09

 

 

100

 

CP Support /Funding

 

 

-

 

 

100

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Uncommitted Bilateral Agreement

 

N/A

 

 

N/A

 

Funding

 

 

85

 

 

N/A

Power

 

5-Year Credit Facility

 

Dec-12

 

 

1,675

2

Funding/LCs

 

 

1,170

 

 

505

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Bilateral Credit Facility -
Mizuho

 

Jun-09

 

 

100

 

Funding/LCs

 

 

-

 

 

100

 

 

Bilateral Credit Facility -
Mizuho

 

Mar-09

 

 

150

 

Funding/LCs

 

 

80

 

 

70

 

 

Bilateral Credit Facility -
WestLB

 

Mar-10

 

 

100

 

Funding/LCs

 

 

97

 

 

3

PSE&G

 

5-year Credit Facility

 

Jun-12

 

 

628

3

CP Support /Funding/LCs

 

 

197

 

 

431

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Uncommitted Bilateral
Agreement

 

N/A

 

 

N/A

 

Funding

 

 

3

 

 

N/A

Energy
Holdings

 

5-year Credit Facility

 

Jun-10

 

 

150

 

Funding/LCs

 

 

14

 

 

136

 

 

 

 

Total

 

$

3,950

 

 

 

 

 

 

$

1,553

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PSEG Short Term Investment

 

 

-

 

 

 

 

 

 

 

Total Liquidity Available

 

 

 

 

$

1,553

1 PSEG Facility will be reduced by $47 million in 2012

2 Power Facility will be reduced by $75 million in 2012

3 PSE&G Facility will be reduced by $28 million in 2012

 

 

Attachment 13

PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED

Reconciling Items Excluded from Continuing Operations to Compute Operating Earnings

(Unaudited)

 

 

 

For the Quarters Ended
June 30,

 

For the Six Months Ended
June 30,

 

Pro-forma Adjustments

 

 

2008

 

 

2007

 

 

2008

 

 

2007

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings Impact (in Millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Lease Transaction Reserves, net of tax

 

$

(490

)

$

-

 

$

(490

)

$

-

 

Premium on Bond Redemption, net of tax

 

 

-

 

 

-

 

 

(1

)

 

-

 

Total Pro-forma to Operating Earnings

 

$

(490

)

$

-

 

$

(491

)

$

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fully Diluted Average Shares Outstanding (in Millions)

 

 

509

 

 

508

 

 

509

 

 

507

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Per Share Impact (Diluted)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Lease Transaction Reserves, net of tax

 

$

(0.96

)

$

-

 

$

(0.96

)

$

-

 

Premium on Bond Redemption, net of tax

 

 

-

 

 

-

 

 

-

 

 

-

 

Total Pro-forma to Operating Earnings

 

$

(0.96

)

$

-

 

$

(0.96

)

$

-