EX-99 2 c55462_ex99.htm

Exhibit 99

    Investor News

 

NYSE:PEG

For further information, contact:

 

 

 

Ø

Kathleen A. Lally, Vice President – Investor Relations

 

Phone: 973-430-6565

 

Ø

Greg McLaughlin, Sr. Investor Relations Analyst

 

Phone: 973-430-6568

 

Ø

Yaeni Kim, Sr. Investor Relations Analyst

 

Phone: 973-430-6596

PSEG ANNOUNCES THIRD QUARTER 2008 EARNINGS

$0.94 PER SHARE FROM CONTINUING OPERATIONS

Strong Operating Performance in face of Difficult Markets

2008 Earnings Guidance Maintained at $2.80-$3.05

(October 31, 2008)—Public Service Enterprise Group (PSEG) reported income from continuing operations for the third quarter of 2008 of $476 million or $0.94 per share compared to income from continuing operations during the third quarter of 2007 of $490 million or $0.96 per share. Operating earnings in the third quarter of 2008 were equivalent to income from continuing operations. Excluding a $7.0 million impairment of the company’s investment in Turboven, operating earnings in the third quarter of 2007 were $497 million or $0.97 per share. Predominantly due to a gain on the sale of SAESA of $187 million, which was sold in July 2008, income from discontinued operations amounted to $180 million or $0.35 per share during the 2008 third quarter bringing net income for the period to $656 million or $1.29 per share. By comparison, in the third quarter of 2007, income from discontinued operations raised net income by $16 million or $0.03 per share to $506 million, or $0.99 per share.

Ralph Izzo, chairman, president and chief executive officer of PSEG, said “Although the economy is experiencing unprecedented turbulence, the focus and dedication of PSEG’s employees to operational excellence continues to provide the solid foundation that allowed us to report very strong earnings for the first nine months of the year, and comfortably supports our 2008 earnings guidance of $2.80-$3.05 per share.”

 

PSEG CONSOLIDATED EARNINGS (unaudited)

For the Quarters Ended September 30,

2008 and 2007

 

 

 

          Income

 

         Diluted Earnings

 

 

          ($millions)

 

          Per Share

 

 

2008

 

2007

 

2008

 

2007 

Net Income

 

$656

 

$506

 

$1.29

 

$0.99 

Less: Income from Discontinued Ops

 

180

 

16

 

0.35

 

0.03 

Income From Continuing Ops

 

$476

 

$490

 

$0.94

 

$0.96 

Loss from Impairments

 

—

 

7

 

—

 

0.01 

 

 

 

 

 

 

 

 

 

Operating Earnings (Non-GAAP)

 

$476

 

$497

 

$0.94

 

$0.97 

 

 

 

 

Avg. Shares

508M

 

509M 

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 “PSEG has worked hard to build a strong financial base through our commitment to operational excellence and prudent financial management. In addition, we have reduced debt with proceeds from the sale of international assets. PSEG has $3.35 billion of available liquidity with very modest financing requirements over the next 15 months which will help us navigate through these turbulent times.”

We have adjusted our full-year 2008 operating earnings guidance by subsidiary to reflect strong earnings from our Texas generating facilities at PSEG Energy Holdings, and the potential for a further decline in the value of Power’s NDT fund given the performance of financial markets in October.

Operating earnings guidance by subsidiary for 2008 has been adjusted as follows:

 

2008 Operating Earnings Guidance
($ millions)
 

 

Current

Prior

PSEG Power

$1,010 - $1,110

$1,040 - $1,140

PSE&G

350 – 370

350 - 370

PSEG Energy Holdings

75 - 90

45 - 60

PSEG Parent

(15) – (10)

(15) - (10)

Operating Earnings

$1,420 - $1,560

$1,420 - $1,560

Earnings Per Share

$2.80 - $3.05

$2.80 - $3.05

Ralph Izzo went on to say that “these results (at the mid-point) of 2008’s guidance represent growth of 8% over 2007’s operating earnings of $2.71 per share. There have been numerous examples this year of our commitment to operational excellence. These range from record setting output at our generation fleet to industry recognition of our utility reliability record.”

Operating Earnings Review and Outlook by Operating Subsidiary

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

PSEG Power

PSEG Power reported operating earnings of $328 million ($0.65 per share) for the third quarter of 2008 compared with operating earnings of $338 million ($0.66 per share) reported during the third quarter of 2007.

PSEG Power’s margins benefited from higher energy pricing and an increase in generation output. Higher realized prices and strong operations added $0.12 per share to earnings. More than half of the improvement in margins was driven by higher prices in PJM. The strong performance of the nuclear fleet, coupled with higher output from the combined cycle units, also allowed PSEG Power to expand its margins during the quarter. The benefits from increased generation offset higher operating and maintenance expense associated with planned outages ($0.03 per share) at our fossil units, as well as an increase in operating expenses at the nuclear fleet ($0.03 per share) associated with an early start to the refueling outage at Peach Bottom 2 and outage-related work at Salem 1. The improvement in margins was more than offset, however, by a reversal of most of the mark-to-market gains reported during the second quarter on positions entered into to hedge 2009 gas exposure ($0.05 per share). Power’s quarterly earnings comparisons were also affected by a reduction in the value of securities held in the Nuclear Decommissioning Trust Fund ($0.02 per share).

 

 

2

 

William Levis, president and chief operating officer of PSEG Power, indicated that “the nuclear fleet is performing extremely well.” During the quarter, the capacity factor of the nuclear units operated by PSEG Power increased to 98% as the result of the continued strong performance from Hope Creek. The nuclear fleet (including PSEG Power’s interest in the Peach Bottom station) operated at a capacity factor of 94.6% in the third quarter. The fleet’s performance for the quarter brought the year-to-date capacity factor to 93%. The fleet’s full year 2008 capacity factor is projected at 91% taking into account the recently completed refueling outage at Peach Bottom 2, and the refueling outage currently underway at Salem No. 1. This unit is expected to return to service in the first half of November. Levis added that “PSEG Power’s performance is benefiting from the execution of the work at Hope Creek and Salem 2 which led to higher levels of capacity being available during the critical summer period.” PSEG Power realized a 150MW increase in the capacity of the Hope Creek nuclear facility. This is greater than the forecast increase of 125MW expected from the work associated with the unit’s uprate in capacity. PSEG Power also realized a 23MW increase in Salem 2’s capacity following the replacement of its steam generator earlier in the year versus a planned increase in capacity of 15MW.

PSEG Power anticipates fourth quarter results will continue to benefit from higher energy pricing locked in earlier. The improvement in margins, however, will be partially offset by planned fossil station maintenance programs, and partial reversal of most of the remaining mark-to-market gain ($0.01 per share) on positions booked earlier in the year. We have also incorporated October’s disappointing stock market performance into the value of the NDT fund for the full year 2008. As a result of the NDT related losses, the full year operating earnings guidance for PSEG Power has been adjusted to $1,010-$1,110 million from $1,040-$1,140 million.

PSE&G

PSE&G reported operating earnings of $97 million ($0.19 per share) for the third quarter of 2008 compared with operating earnings of $106 million ($0.21 per share) during the third quarter of 2007. PSE&G’s quarterly results reflect unfavorable weather-normalized declines in electric sales ($0.01 per share) and miscellaneous expenses ($0.01 per share).

Ralph LaRossa, president and chief operating officer of PSE&G, said he’s “extremely proud of PSE&G being named America’s most reliable electric utility by PA Consulting.” This is the third time in the last four years that the utility has received this recognition, and the seventh straight year that it has earned the ReliabilityOne Award for the Mid-Atlantic region. “This recognition underscores PSE&G’s longstanding commitment to deliver safe, reliable, and affordable service to the people and businesses who power New Jersey” LaRossa said “even during these difficult economic times.”

PSE&G received support from the Federal Energy Regulatory Commission (FERC) for its transmission-related capital program with the FERC’s approval for a modest increase in transmission rates effective October 1, 2008. PSE&G was granted a return on equity of 11.68% for its transmission investment. Earlier this year, PSE&G was granted an incentive return of 125 basis points on its planned investment in the Susquehanna to Roseland 500Kv transmission line. This line is expected to go into service at the end of 2012.

PSEG Energy Holdings

PSEG Energy Holdings reported operating earnings of $56 million ($0.11 per share) for the third quarter of 2008 versus operating earnings of $63 million ($0.12 per share) for the third quarter of 2007.

 

 

3

 

Holdings’ Global subsidiary recorded a $0.04 per share improvement in earnings as compared to the prior period. The improvement was the result of stronger production and increased spark spreads from Global’s 2,000MW of gas-fired Texas generating capacity ($0.01 per share) coupled with mark-to-market gains of $0.04 per share. These items more than offset the absence of income ($0.02 per share) from Chilquinta and Luz del Sur which were sold in the fourth quarter of 2007. Global’s third quarter earnings also benefited from a net decrease in financing costs ($0.02 per share) which more than offset a higher tax rate ($0.01 per share). Holdings’ Resources subsidiary recorded a $0.05 per share decline in quarter-over-quarter earnings. The reduction in earnings was the result of lower income due to the company’s decision to recognize a substantial charge in the second quarter related to the IRS tax challenge on certain lease investments, and a higher tax rate on its lease portfolio.

Holdings’ Global subsidiary 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 $187 million which is reported in discontinued operations. PSEG Global’s after-tax proceeds amounted to approximately $600 million.

PSEG Energy Holdings’ operating earnings were expected to decline in 2008. However, the full year forecast of operating earnings for 2008 has been adjusted to reflect stronger than anticipated power markets in Texas. High natural gas prices and demand have more than offset the impact of added wind resources in West Texas on the dispatch of natural gas-fired generating assets. Results during the fourth quarter will also reflect the loss of income from the sale of Chilquinta and Luz del Sur, as well as a decline in income on Resources’ leveraged lease portfolio.

2009 Earnings

The fundamental drivers for PSEG continue to support growth in earnings for 2009 over 2008. This is primarily due to an anticipated improvement in margins at PSEG Power. PSEG, however, expects to experience some escalation in pension expense and financial costs as a result of stresses in the financial markets. PSEG Power is also facing a potential adjustment in one of its coal contracts. Ralph Izzo stated “we are working to mitigate the impact of these pressures through implementation of rigorous cost control measures and a reduction in capital expenditures. PSEG is currently expecting earnings for 2009 to come in at the lower half of our previously stated range of $3.05-$3.35 per share.”

Capital Spending

PSEG has reduced its forecast of capital expenditures for 2009 in response to volatility in the financial markets. The company’s spending forecast during this period has been reduced by $275-$325 million from previously disclosed amounts.

Other Events

PSEG, as of September 30, 2008, had $658 million of remaining authorization under its $750 million common stock repurchase program. The repurchase program was authorized in July 2008 to be executed over an 18-month period.

#######

 

 

4

 

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
September 30, 

 

  

For the Nine Months Ended
September 30, 

 

 

 

2008

 

2007

 

  

2008

 

2007

 

 

 

 

 

 

 

 

 

  

 

 

 

 

 

 

Earnings Results (in Millions)

 

 

 

 

 

 

 

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  

 

 

 

 

 

 

PSEG Power

 

$

328

 

$

338

 

  

$

843

 

$

744

 

PSE&G

 

 

97

 

 

106

 

  

 

284

 

 

299

 

PSEG Energy Holdings

 

 

 

 

 

 

 

  

 

 

 

 

 

 

PSEG Global

 

 

67

 

 

48

 

  

 

101

 

 

69

 

PSEG Resources

 

 

(11

)

 

15

 

  

 

24

 

 

46

 

PSEG Energy Holdings

 

 

—

 

 

—

 

  

 

(1

)

 

(2

)

Total PSEG Energy Holdings

 

 

56

 

 

63

 

  

 

124

 

 

113

 

PSEG

 

 

(5

)

 

(10

)

  

 

(14

)

 

(43

)

Operating Earnings

 

$

476

 

$

497

 

  

$

1,237

 

$

1,113

 

Reconciling Items (a)

 

 

—

 

 

(7

)

  

 

(491

)

 

(7

)

Income from Continuing Operations

 

$

476

 

$

490

 

  

$

746

 

$

1,106

 

Discontinued Operations

 

 

180

 

 

16

 

  

 

208

 

 

4

 

PSEG Net Income

 

$

656

 

$

506

 

  

$

954

 

$

1,110

 

 

 

 

 

 

 

 

 

  

 

 

 

 

 

 

Fully Diluted Average Shares Outstanding (in Millions)

 

 

508

 

 

509

 

  

 

509

 

 

508

 

 

 

 

 

 

 

 

 

  

 

 

 

 

 

 

Per Share Results (Diluted)

 

 

 

 

 

 

 

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  

 

 

 

 

 

 

PSEG Power

 

$

0.65

 

$

0.66

 

  

$

1.66

 

$

1.46

 

PSE&G

 

 

0.19

 

 

0.21

 

  

 

0.56

 

 

0.59

 

PSEG Energy Holdings

 

 

 

 

 

 

 

  

 

 

 

 

 

 

PSEG Global

 

 

0.13

 

 

0.09

 

  

 

0.20

 

 

0.14

 

PSEG Resources

 

 

(0.02

)

 

0.03

 

  

 

0.05

 

 

0.09

 

PSEG Energy Holdings

 

 

—

 

 

—

 

  

 

(0.01

)

 

(0.01

)

Total PSEG Energy Holdings

 

 

0.11

 

 

0.12

 

  

 

0.24

 

 

0.22

 

PSEG

 

 

(0.01

)

 

(0.02

)

  

 

(0.03

)

 

(0.08

)

Operating Earnings

 

$

0.94

 

$

0.97

 

  

$

2.43

 

$

2.19

 

Reconciling Items (a)

 

 

—

 

 

(0.01

)

  

 

(0.96

)

 

(0.01

)

Income from Continuing Operations

 

$

0.94

 

$

0.96

 

  

$

1.47

 

$

2.18

 

Discontinued Operations

 

 

0.35

 

 

0.03

 

  

 

0.41

 

 

0.01

 

PSEG Net Income

 

$

1.29

 

$

0.99

 

  

$

1.88

 

$

2.19

 

(a) See attachment 14 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 September 30, 2008 and 2007.

Income from Continuing Operations includes preferred stock dividends relating to PSE&G of $3 million for the nine months ended September 30, 2008 and 2007.

 

 

Attachment 2

PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED

Consolidating Statements of Operations

(Unaudited, $ Millions)

 

 

 

For the Quarter Ended September 30, 2008

 

 

 

 

PSEG

 

 

 

OTHER (a)

 

 

PSEG
POWER

 

 

PSE&G

 

PSEG ENERGY
HOLDINGS

 

OPERATING REVENUES

 

$

3,718

 

 

$

(743

)

$

1,833

 

$

2,274

 

$

354

 

OPERATING EXPENSES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Energy Costs

 

 

1,899

 

 

 

(739

)

 

904

 

 

1,521

 

 

213

 

Operation and Maintenance (c)

 

 

610

 

 

 

(13

)

 

282

 

 

313

 

 

28

 

Depreciation and Amortization

 

 

214

 

 

 

3

 

 

42

 

 

161

 

 

8

 

Taxes Other Than Income Taxes

 

 

31

 

 

 

—

 

 

—

 

 

31

 

 

—

 

Total Operating Expenses

 

 

2,754

 

 

 

(749

)

 

1,228

 

 

2,026

 

 

249

 

Income from Equity Method Investments

 

 

8

 

 

 

—

 

 

—

 

 

—

 

 

8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATING INCOME

 

 

972

 

 

 

6

 

 

605

 

 

248

 

 

113

 

Other Income and Deductions

 

 

(12

)

 

 

(3

)

 

(16

)

 

—

 

 

7

 

Interest Expense

 

 

(149

)

 

 

(7

)

 

(42

)

 

(82

)

 

(18

)

Preferred Securities Dividends

 

 

(1

)

 

 

—

 

 

—

 

 

(1

)

 

—

 

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

 

 

810

 

 

 

(4

)

 

547

 

 

165

 

 

102

 

Income Tax Expense

 

 

(334

)

 

 

(1

)

 

(219

)

 

(68

)

 

(46

)

INCOME (LOSS) FROM CONTINUING OPERATIONS

 

 

476

 

 

 

(5

)

 

328

 

 

97

 

 

56

 

Discontinued Operations, net of tax

 

 

180

 

 

 

—

 

 

—

 

 

—

 

 

180

 

NET INCOME (LOSS)

 

$

656

 

 

$

(5

)

$

328

 

$

97

 

$

236

 

Discontinued Operations, net of tax

 

 

(180

)

 

 

—

 

 

—

 

 

—

 

 

(180

)

OPERATING EARNINGS (LOSS)

 

$

476

 

 

$

(5

)

$

328

 

$

97

 

$

56

 

 

 

 

For the Quarter Ended September 30, 2007

 

 

 

 

PSEG

 

 

 

OTHER (a)

 

 

PSEG
POWER

 

 

PSE&G

 

PSEG ENERGY
HOLDINGS

 

OPERATING REVENUES

 

$

3,347

 

 

$

(590

)

$

1,580

 

$

2,106

 

$

251

 

OPERATING EXPENSES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Energy Costs

 

 

1,588

 

 

 

(592

)

 

712

 

 

1,341

 

 

127

 

Operation and Maintenance (c)

 

 

559

 

 

 

(8

)

 

232

 

 

308

 

 

27

 

Write-down of Assets

 

 

12

 

 

 

—

 

 

—

 

 

—

 

 

12

 

Depreciation and Amortization

 

 

209

 

 

 

5

 

 

36

 

 

161

 

 

7

 

Taxes Other Than Income Taxes

 

 

31

 

 

 

—

 

 

—

 

 

31

 

 

—

 

Total Operating Expenses

 

 

2,399

 

 

 

(595

)

 

980

 

 

1,841

 

 

173

 

Income from Equity Method Investments

 

 

30

 

 

 

—

 

 

—

 

 

—

 

 

30

 

OPERATING INCOME

 

 

978

 

 

 

5

 

 

600

 

 

265

 

 

108

 

Other Income and Deductions

 

 

12

 

 

 

(3

)

 

14

 

 

1

 

 

—

 

Interest Expense

 

 

(184

)

 

 

(19

)

 

(43

)

 

(85

)

 

(37

)

Preferred Securities Dividends

 

 

(1

)

 

 

—

 

 

—

 

 

(1

)

 

—

 

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

 

 

805

 

 

 

(17

)

 

571

 

 

180

 

 

71

 

Income Tax (Expense) Benefit

 

 

(315

)

 

 

7

 

 

(233

)

 

(74

)

 

(15

)

INCOME (LOSS) FROM CONTINUING OPERATIONS

 

 

490

 

 

 

(10

)

 

338

 

 

106

 

 

56

 

Discontinued Operations, net of tax

 

 

16

 

 

 

—

 

 

1

 

 

—

 

 

15

 

NET INCOME (LOSS)

 

$

506

 

 

$

(10

)

$

339

 

$

106

 

$

71

 

Discontinued Operations, net of tax

 

 

(16

)

 

 

—

 

 

(1

)

 

—

 

 

(15

)

Reconciling Items, net of tax (d)

 

 

7

 

 

 

—

 

 

—

 

 

—

 

 

7

 

OPERATING EARNINGS (LOSS)

 

$

497

 

 

$

(10

)

$

338

 

$

106

 

$

63

 

(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 September 30, 2008 and 2007.

(c)

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

(d)

See attachment 14 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 Nine Months Ended September 30, 2008

 

 

 

 

PSEG

 

 

 

OTHER (a)

 

 

PSEG
POWER

 

 

PSE&G

 

PSEG ENERGY
HOLDINGS

 

OPERATING REVENUES

 

$

10,060

 

 

$

(2,766

)

$

5,831

 

$

6,750

 

$

245

 

OPERATING EXPENSES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Energy Costs

 

 

5,552

 

 

 

(2,762

)

 

3,360

 

 

4,527

 

 

427

 

Operation and Maintenance (c)

 

 

1,857

 

 

 

(27

)

 

796

 

 

993

 

 

95

 

Depreciation and Amortization

 

 

597

 

 

 

11

 

 

121

 

 

443

 

 

22

 

Taxes Other Than Income Taxes

 

 

101

 

 

 

—

 

 

—

 

 

101

 

 

—

 

Total Operating Expenses

 

 

8,107

 

 

 

(2,778

)

 

4,277

 

 

6,064

 

 

544

 

Income from Equity Method Investments

 

 

27

 

 

 

—

 

 

—

 

 

—

 

 

27

 

OPERATING INCOME (LOSS)

 

 

1,980

 

 

 

12

 

 

1,554

 

 

686

 

 

(272

)

Other Income and Deductions

 

 

(3

)

 

 

(8

)

 

(15

)

 

6

 

 

14

 

Interest Expense

 

 

(448

)

 

 

(19

)

 

(125

)

 

(244

)

 

(60

)

Preferred Securities Dividends

 

 

(3

)

 

 

—

 

 

—

 

 

(3

)

 

—

 

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

 

 

1,526

 

 

 

(15

)

 

1,414

 

 

445

 

 

(318

)

Income Tax (Expense) Benefit

 

 

(780

)

 

 

1

 

 

(571

)

 

(161

)

 

(49

)

INCOME (LOSS) FROM CONTINUING OPERATIONS

 

 

746

 

 

 

(14

)

 

843

 

 

284

 

 

(367

)

Discontinued Operations, net of tax

 

 

208

 

 

 

—

 

 

—

 

 

—

 

 

208

 

NET INCOME (LOSS)

 

$

954

 

 

$

(14

)

$

843

 

$

284

 

$

(159

)

Discontinued Operations, net of tax

 

 

(208

)

 

 

—

 

 

—

 

 

—

 

 

(208

)

Reconciling Items, net of tax (d)

 

 

491

 

 

 

—

 

 

—

 

 

—

 

 

491

 

OPERATING EARNINGS (LOSS)

 

$

1,237

 

 

$

(14

)

$

843

 

$

284

 

$

124

 

 

 

 

For the Nine Months Ended September 30, 2007

 

 

 

 

PSEG

 

 

 

OTHER (a)

 

 

PSEG
POWER

 

 

PSE&G

 

PSEG ENERGY
HOLDINGS

 

OPERATING REVENUES

 

$

9,561

 

 

$

(2,448

)

$

5,034

 

$

6,340

 

$

635

 

OPERATING EXPENSES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Energy Costs

 

 

4,885

 

 

 

(2,446

)

 

2,894

 

 

4,083

 

 

354

 

Operation and Maintenance (c)

 

 

1,727

 

 

 

(21

)

 

711

 

 

947

 

 

90

 

Write-down of Assets

 

 

12

 

 

 

—

 

 

—

 

 

—

 

 

12

 

Depreciation and Amortization

 

 

587

 

 

 

11

 

 

104

 

 

449

 

 

23

 

Taxes Other Than Income Taxes

 

 

104

 

 

 

—

 

 

—

 

 

104

 

 

—

 

Total Operating Expenses

 

 

7,315

 

 

 

(2,456

)

 

3,709

 

 

5,583

 

 

479

 

Income from Equity Method Investments

 

 

87

 

 

 

—

 

 

—

 

 

—

 

 

87

 

OPERATING INCOME

 

 

2,333

 

 

 

8

 

 

1,325

 

 

757

 

 

243

 

Other Income and Deductions

 

 

67

 

 

 

(15

)

 

57

 

 

9

 

 

16

 

Interest Expense

 

 

(549

)

 

 

(67

)

 

(119

)

 

(250

)

 

(113

)

Preferred Securities Dividends

 

 

(3

)

 

 

—

 

 

—

 

 

(3

)

 

—

 

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

 

 

1,848

 

 

 

(74

)

 

1,263

 

 

513

 

 

146

 

Income Tax (Expense) Benefit

 

 

(742

)

 

 

31

 

 

(519

)

 

(214

)

 

(40

)

INCOME (LOSS) FROM CONTINUING OPERATIONS

 

 

1,106

 

 

 

(43

)

 

744

 

 

299

 

 

106

 

Discontinued Operations, net of tax

 

 

4

 

 

 

—

 

 

(8

)

 

—

 

 

12

 

NET INCOME (LOSS)

 

$

1,110

 

 

$

(43

)

$

736

 

$

299

 

$

118

 

Discontinued Operations, net of tax

 

 

(4

)

 

 

—

 

 

8

 

 

—

 

 

(12

)

Reconciling Items, net of tax (d)

 

 

7

 

 

 

—

 

 

—

 

 

—

 

 

7

 

OPERATING EARNINGS (LOSS)

 

$

1,113

 

 

$

(43

)

$

744

 

$

299

 

$

113

 

(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 $3 million for the nine months ended September 30, 2008 and 2007.

(c)

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

(d)

See attachment 14 for details of items excluded from Continuing Operations to compute Operating Earnings.

 

Attachment 4

PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED

Capitalization Schedule

(Unaudited, $ Millions)

 

 

 

September 30, 
2008 

 

December 31, 
2007 

DEBT

 

 

 

 

 

 

 

 

Commercial Paper and Loans

 

$

181

 

 

$

65

 

Long-Term Debt (a)

 

 

7,124

 

 

 

7,689

 

Securitization Debt (a)

 

 

1,581

 

 

 

1,708

 

Project Level, Non-Recourse Debt (a)

 

 

346

 

 

 

384

 

Total Debt

 

 

9,232

 

 

 

9,846

 

 

 

 

 

 

 

 

 

 

SUBSIDIARY'S PREFERRED SECURITIES

 

 

80

 

 

 

80

 

 

 

 

 

 

 

 

 

 

COMMON STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

 

Common Stock

 

 

4,753

 

 

 

4,732

 

Treasury Stock

 

 

(579

)

 

 

(478

)

Retained Earnings

 

 

3,701

 

 

 

3,261

 

Accumulated Other Comprehensive Loss

 

 

(196

)

 

 

(216

)

Total Common Stockholders' Equity

 

 

7,679

 

 

 

7,299

 

Total Capitalization

 

$

16,991

 

 

$

17,225

 

(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 September 30, 2008 was 48.1%.

The ratio as calculated pursuant to these covenants excludes non-recourse project debt ($346 million) and securitization debt ($1.581 billion). It also includes capital lease obligations ($44 million) and certain other obligations such as guarantees and letters of credit ($62 million), excluding any letters of credit related to collateral posting on energy/commodity contracts. The calculation excludes the equity reduction ($164 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 ($69 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 ($384 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 Nine Months Ended September 30,

 

 

2008 

 

2007 

CASH FLOWS FROM OPERATING ACTIVITIES

 

 

 

 

 

 

 

 

Net Income

 

$

954

 

 

$

1,110

 

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

 

 

 

 

 

 

 

 

From Operating Activities

 

 

638

 

 

 

429

 

Net Cash Provided By Operating Activities

 

 

1,592

 

 

 

1,539

 

 

 

 

 

 

 

 

 

 

NET CASH USED IN INVESTING ACTIVITIES

 

 

(459

)

 

 

(589

)

 

 

 

 

 

 

 

 

 

NET CASH USED IN FINANCING ACTIVITIES

 

 

(1,284

)

 

 

(669

)

Effect of Exchange Rate Change

 

 

—

 

 

 

2

 

Net Increase (Decrease) in Cash and Cash Equivalents

 

 

(151

)

 

 

283

 

Cash and Cash Equivalents at Beginning of Period

 

 

380

 

 

 

100

 

Cash and Cash Equivalents at End of Period

 

$

229

 

 

$

383

 

(a) Includes changes in working capital of ($117 million) and ($326 million) for 2008 and 2007, respectively.

 

 

Attachment 6

PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED

Quarter-to-Quarter EPS Reconciliation

September 30, 2008 vs. September 30, 2007

(Unaudited)

 

PSEG 3rd Quarter 2007 Net Income

 

 

 

 

 

 

$

0.99

 

Discontinued Operations (SAESA, Electroandes)

 

 

 

 

 

 

 

0.03

 

PSEG 3rd Quarter 2007 Income from Continuing Operations

 

 

 

 

 

 

$

0.96

 

Reconciling Items (a)

 

 

 

 

 

 

 

(0.01

)

PSEG 3rd Quarter 2007 Operating Earnings

 

 

 

 

 

 

$

0.97

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

B/(W

)

PSEG Power

 

 

 

 

 

 

 

 

 

3rd Quarter 2007

 

 

 

$

0.66

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Recontracting and Strong Markets

 

0.12

 

 

 

 

 

 

 

Mark-to-Market (MTM)

 

(0.05

)

 

 

 

 

 

 

Margin

 

 

 

 

0.07

 

 

 

 

O&M

 

 

 

 

(0.06

)

 

 

 

Depreciation, NDT and Other

 

 

 

 

(0.02

)

 

 

 

 

 

 

 

 

 

 

 

 

 

3rd Quarter 2008

 

 

 

$

0.65

 

$

(0.01

)

 

 

 

 

 

 

 

 

 

 

PSE&G

 

 

 

 

 

 

 

 

 

3rd Quarter 2007

 

 

 

$

0.21

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Electric Margin

 

 

 

 

(0.01

)

 

 

 

Depreciation, Interest and O&M

 

 

 

 

(0.01

)

 

 

 

 

 

 

 

 

 

 

 

 

 

3rd Quarter 2008

 

 

 

$

0.19

 

$

(0.02

)

 

 

 

 

 

 

 

 

 

 

PSEG Energy Holdings

 

 

 

 

 

 

 

 

 

3rd Quarter 2007

 

 

 

$

0.12

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Global - Texas Generation Facilities - MTM $0.04, Operations $ 0.01

 

 

 

 

0.05

 

 

 

 

Global - Interest Expense

 

 

 

 

0.02

 

 

 

 

Global - Earnings on Chilquinta & Luz

 

 

 

 

(0.02

)

 

 

 

Global - Effective Tax Rate

 

 

 

 

(0.01

)

 

 

 

Resources - Effective Tax Rate

 

 

 

 

(0.02

)

 

 

 

Resources - Lease Income

 

 

 

 

(0.01

)

 

 

 

Resources - Interest Expense

 

 

 

 

(0.01

)

 

 

 

Resources - Other

 

 

 

 

(0.01

)

 

 

 

 

 

 

 

 

 

 

 

 

 

3rd Quarter 2008

 

 

 

$

0.11

 

$

(0.01

)

 

 

 

 

 

 

 

 

 

 

Public Service Enterprise Group

 

 

 

 

 

 

 

 

 

3rd Quarter 2007

 

 

 

$

(0.02

)

 

 

 

Interest

 

 

 

 

0.01

 

 

 

 

3rd Quarter 2008

 

 

 

$

(0.01

)

$

0.01

 

 

 

 

 

 

 

 

 

 

 

PSEG 3rd Quarter 2008 Operating Earnings

 

 

 

 

 

 

$

0.94

 

PSEG 3rd Quarter 2008 Income from Continuing Operations

 

 

 

 

 

 

$

0.94

 

Discontinued Operations (SAESA, Bioenergie)

 

 

 

 

 

 

 

0.35

 

PSEG 3rd Quarter 2008 Net Income

 

 

 

 

 

 

$

1.29

 

(a) See attachment 14 for details of items excluded from Continuing Operations to compute Operating Earnings.

 

 

Attachment 7

PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED

Year to Date EPS Reconciliation

September 30, 2008 vs. September 30, 2007

(Unaudited)

 

PSEG Net Income for the Nine Months Ended September 30, 2007

 

 

 

 

 

 

$

2.19

 

Discontinued Operations (SAESA, Electroandes, Bioenergie, Lawrenceburg)

 

 

 

 

 

 

 

0.01

 

PSEG Income from Continuing Operations for the Nine Months Ended September 30, 2007

 

 

$

2.18

 

Reconciling Items (a)

 

 

 

 

 

 

 

(0.01

)

PSEG Operating Earnings for the Nine Months Ended September 30, 2007

 

 

 

 

 

 

$

2.19

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

B/(W

)

PSEG Power

 

 

 

 

 

 

 

 

 

Year to Date September 30, 2007

 

 

 

$

1.46

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Recontracting and Strong Markets

 

0.36

 

 

 

 

 

 

 

Mark-to-Market (MTM)

 

0.03

 

 

 

 

 

 

 

Margin

 

 

 

 

0.39

 

 

 

 

O&M

 

 

 

 

(0.10

)

 

 

 

Depreciation, Interest, NDT and Other

 

 

 

 

(0.09

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Year to Date September 30, 2008

 

 

 

$

1.66

 

$

0.20

 

 

 

 

 

 

 

 

 

 

 

PSE&G

 

 

 

 

 

 

 

 

 

Year to Date September 30, 2007

 

 

 

$

0.59

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weather - Gas

 

 

 

 

(0.02

)

 

 

 

Gas Margin

 

 

 

 

(0.01

)

 

 

 

Transmission Margin

 

 

 

 

(0.01

)

 

 

 

Electric Margin

 

 

 

 

(0.01

)

 

 

 

O&M

 

 

 

 

(0.02

)

 

 

 

Depreciation and Other

 

 

 

 

(0.02

)

 

 

 

Effective Tax Rate

 

 

 

 

0.06

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year to Date September 30, 2008

 

 

 

$

0.56

 

$

(0.03

)

 

 

 

 

 

 

 

 

 

 

PSEG Energy Holdings

 

 

 

 

 

 

 

 

 

Year to Date September 30, 2007

 

 

 

$

0.22

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Global - Texas Generation Facilities - Operations $0.07, MTM $ 0.02

 

 

 

 

0.09

 

 

 

 

Global - Interest Expense

 

 

 

 

0.07

 

 

 

 

Global - Effective Tax Rate

 

 

 

 

0.02

 

 

 

 

Global - Earnings on Chilquinta & Luz

 

 

 

 

(0.08

)

 

 

 

Global - Other Operations

 

 

 

 

(0.02

)

 

 

 

Global - Gain on Sale of Tracy in 2007

 

 

 

 

(0.01

)

 

 

 

Global - Konya-Ilgin Settlement in 2007 & Other Income

 

 

 

 

(0.01

)

 

 

 

Resources - Lease Income

 

 

 

 

(0.02

)

 

 

 

Resources - Other

 

 

 

 

(0.02

)

 

 

 

Resources - Interest Expense

 

 

 

 

(0.01

)

 

 

 

Resources - Effective Tax Rate

 

 

 

 

0.01

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year to Date September 30, 2008

 

 

 

$

0.24

 

$

0.02

 

 

 

 

 

 

 

 

 

 

 

Public Service Enterprise Group

 

 

 

 

 

 

 

 

 

Year to Date September 30, 2007

 

 

 

$

(0.08

)

 

 

 

Interest

 

 

 

 

0.05

 

 

 

 

Year to Date September 30, 2008

 

 

 

$

(0.03

)

$

0.05

 

 

 

 

 

 

 

 

 

 

 

PSEG Operating Earnings for the Nine Months Ended September 30, 2008

 

 

 

 

 

 

$

2.43

 

Reconciling Items (a)

 

 

 

 

 

 

 

(0.96

)

PSEG Income from Continuing Operations for the Nine Months Ended September 30, 2008

 

 

$

1.47

 

Discontinued Operations (SAESA, Bioenergie)

 

 

 

 

 

 

 

0.41

 

PSEG Net Income for the Nine Months Ended September 30, 2008

 

 

 

 

 

 

$

1.88

 

(a) See attachment 14 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
September 30, 

 

 

 

Nine Months Ended
September 30, 

 

 

 

2008

 

 

2007

 

 

 

2008

 

2007

  

Nuclear - NJ

 

5,480

 

 

5,143

 

 

 

14,889

 

 

14,657

 

Nuclear - PA

 

2,148

 

 

2,266

 

 

 

7,035

 

 

7,166

 

Total Nuclear

 

7,628

 

 

7,409

 

 

 

21,924

 

 

21,823

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fossil - Coal - NJ

 

1,499

 

 

1,579

 

 

 

3,673

 

 

3,617

 

Fossil - Coal - PA

 

1,483

 

 

1,566

 

 

 

4,534

 

 

4,241

 

Fossil - Coal - CT

 

789

 

 

715

 

 

 

2,179

 

 

2,194

 

Total Coal

 

3,771

 

 

3,860

 

 

 

10,386

 

 

10,052

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fossil - Oil & Natural Gas - NJ

 

3,139

 

 

2,837

 

 

 

8,284

 

 

6,051

 

Fossil - Oil & Natural Gas - NY

 

996

 

 

1,126

 

 

 

2,182

 

 

2,539

 

Fossil - Oil & Natural Gas - CT

 

9

 

 

85

 

 

 

105

 

 

447

 

Total Oil & Natural Gas

 

4,144

 

 

4,048

 

 

 

10,571

 

 

9,037

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fossil - Pumped Storage

 

(41

)

 

(36

)

 

 

(110

)

 

(105

)

 

 

15,502

 

 

15,281

 

 

 

42,771

 

 

40,807

 

 

 

% Generation by Fuel Type

 

 

 

% Generation by Fuel Type

 

 

 


Quarters Ended
September 30,

 

 

 

Nine Months Ended
September 30,

 

 

 

2008

 

 

2007

 

 

 

2008

 

2007

  

Nuclear - NJ

 

35%

 

 

33%

 

 

 

35%

 

 

36%

 

Nuclear - PA

 

14%

 

 

15%

 

 

 

16%

 

 

17%

 

Total Nuclear

 

49%

 

 

48%

 

 

 

51%

 

 

53%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fossil - Coal - NJ

 

10%

 

 

10%

 

 

 

8%

 

 

10%

 

Fossil - Coal - PA

 

9%

 

 

10%

 

 

 

11%

 

 

10%

 

Fossil - Coal - CT

 

5%

 

 

5%

 

 

 

5%

 

 

5%

 

Total Coal

 

24%

 

 

25%

 

 

 

24%

 

 

25%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fossil - Oil & Natural Gas - NJ

 

20%

 

 

19%

 

 

 

20%

 

 

15%

 

Fossil - Oil & Natural Gas - NY

 

7%

 

 

7%

 

 

 

5%

 

 

6%

 

Fossil - Oil & Natural Gas - CT

 

0%

 

 

1%

 

 

 

0%

 

 

1%

 

Total Oil & Natural Gas

 

27%

 

 

27%

 

 

 

25%

 

 

22%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fossil - Pumped Storage

 

0%

 

 

0%

 

 

 

0%

 

 

0%

 

 

 

100%

 

 

100%

 

 

 

100%

 

 

100%

 

 

Attachment 9

PUBLIC SERVICE ELECTRIC & GAS

Retail Sales and Revenues

(Unaudited)

September 30, 2008

Electric Sales and Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales (millions kwh)

 

 

Quarter
Ended

 

Change vs.
2007

 

 

Nine Months
Ended

 

Change vs.
2007

 

 

Residential

 

 

4,332

 

-1.6%

 

 

10,638

 

-1.5%

 

 

Commercial

 

 

6,770

 

-0.2%

 

 

18,759

 

0.1%

 

 

Industrial

 

 

1,383

 

-5.0%

 

 

3,926

 

-5.1%

 

 

Street Lighting

 

 

82

 

0.6%

 

 

264

 

1.0%

 

 

Interdepartmental

 

 

4

 

-1.0%

 

 

10

 

-2.7%

 

 

Total

 

 

12,571

 

-1.2%

 

 

33,597

 

-1.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue (in millions)

 

 

 

 

 

 

 

 

 

 

 

 

Residential

 

$

762

 

8.9%

 

$

1,694

 

8.9%

 

 

Commercial

 

 

916

 

5.5%

 

 

2,176

 

7.7%

 

 

Industrial

 

 

112

 

1.3%

 

 

274

 

2.8%

 

 

Street Lighting

 

 

19

 

8.0%

 

 

57

 

6.2%

 

 

Other Operating Revenues

 

 

131

 

25.3%

 

 

344

 

31.0%

 

 

Total

 

$

1,940

 

7.7%

 

$

4,545

 

9.3%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weather Data

 

 

Quarter
Ended

 

Change vs.
2007

 

 

Nine Months
Ended

 

Change vs.
2007

 

 

THI Hours - Actual

 

 

10,130

 

-3.9%

 

 

14,137

 

-2.1%

 

 

THI Hours - Normal

 

 

10,690

 

 

 

 

14,560

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Attachment 10

PUBLIC SERVICE ELECTRIC & GAS

Retail Sales and Revenues

(Unaudited)

September 30, 2008

Gas Sold and Transported

 

                     
 

Sales (millions therms)

 

Quarter
Ended

 

Change vs.
2007

 

Nine Months
Ended

 

Change vs.
2007

  
 

Residential Sales

 

 

97

 

-3.0%

 

 

926

 

-7.3%

  
 

Commercial - Firm Sales

 

 

38

 

-6.7%

 

 

338

 

-9.4%

  
 

Commercial - Interr. & Cogen

 

 

13

 

58.3%

 

 

37

 

24.0%

  
 

Industrial - Firm Sales

 

 

3

 

-0.5%

 

 

27

 

-8.3%

  
 

Industrial - Interr. & Cogen

 

 

47

 

-15.8%

 

 

151

 

41.3%

  
 

Interdepartmental

 

 

—

 

142.0%

 

 

1

 

-27.7%

  
 

Total

 

 

198

 

-4.8%

 

 

1,480

 

-3.9%

  
 

Gas Transported - Firm Sales

 

 

50

 

-2.2%

 

 

310

 

-1.3%

  
 

Gas Transported - Non-Firm

 

 

254

 

-8.7%

 

 

641

 

-2.2%

  
                         
 

Revenue (in millions)

 

 

 

 

 

 

 

 

 

 

  
 

Residential Sales

 

$

89

 

-3.0%

 

$

849

 

-7.3%

  
 

Commercial - Firm Sales

 

 

48

 

43.6%

 

 

368

 

10.0%

  
 

Commercial - Interr. & Cogen

 

 

15

 

144.0%

 

 

42

 

59.5%

  
 

Industrial - Firm Sales

 

 

4

 

56.5%

 

 

29

 

10.9%

  
 

Industrial - Interr. & Cogen

 

 

51

 

28.0%

 

 

167

 

93.1%

  
 

Other Operating Revenues

 

 

32

 

-3.3%

 

 

96

 

-5.1%

  
 

Total

 

$

239

 

15.5%

 

$

1,551

 

4.0%

  
 

Gas Transported

 

 

95

 

-3.0%

 

 

653

 

-5.3%

  
                         

 

                     
 

Weather Data

 

Quarter
Ended

 

Change vs.
2007

 

Nine Months
Ended

 

Change vs.
2007

  
 

Degree Days - Actual

 

21

 

-27.6%

 

2,918

 

-8.5%

  
 

Degree Days - Normal

 

34

 

 

 

3,145

 

 

  
                     

 

 

Attachment 11

PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED

Statistical Measures

(Unaudited)

 

 

 

For the Quarters Ended
September 30

 

For the Nine Months Ended
September 30

 

 

2008

 

2007

 

2008

 

2007

Weighted Average Common Shares Outstanding (000's)

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

507,724

 

 

508,543

 

 

508,233

 

 

507,206

Diluted

 

 

508,326

 

 

509,090

 

 

508,890

 

 

507,966

Stock Price at End of Period

 

 

 

 

 

 

 

$

32.79

 

$

44.00

Dividends Paid per Share of Common Stock

 

$

0.3225

 

$

0.2925

 

$

0.9675

 

$

0.8775

Dividend Payout Ratio*

 

 

 

 

 

 

 

 

42.6%

 

 

46.9%

Dividend Yield

 

 

 

 

 

 

 

 

3.8%

 

 

2.6%

Price/Earnings Ratio*

 

 

 

 

 

 

 

 

11.0

 

 

17.9

Rate of Return on Average Common Equity*

 

 

 

 

 

 

 

 

13.3%

 

 

17.8%

Book Value per Common Share

 

 

 

 

 

 

 

$

15.17

 

$

14.37

Market Price as a Percent of Book Value

 

 

 

 

 

 

 

 

216%

 

 

306%

Total Shareholder Return

 

 

-18.9%

 

 

0.9%

 

 

-31.7%

 

 

35.4%

*

Calculation based on Operating Earnings for 12 month period ended

 

Attachment 12

PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED

Non-Trading Mark-to-Market

(Unaudited)

September 30, 2008

2008 Non-Trading Mark-to-Market

Energy Positions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

In Millions After-Tax

 

 

Q1

 

 

Q2

 

 

Q3

 

 

Year-to-Date

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Power

 

$

2.7

 

$

27.1

 

$

(20.0

)

$

9.8

 

 

Holdings

 

 

1.8

 

 

(13.1

)

 

31.5

 

 

20.2

 

 

Total

 

$

4.5

 

$

14.0

 

$

11.5

 

$

30.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EPS Impact

 

 

Q1

 

 

Q2

 

 

Q3

 

 

Year-to-Date

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Power

 

$

0.01

 

$

0.05

 

$

(0.04

)

$

0.02

 

 

Holdings

 

 

—

 

 

(0.02

)

 

0.06

 

 

0.04

 

 

Total

 

$

0.01

 

$

0.03

 

$

0.02

 

$

0.06

 

2007 Non-Trading Mark-to-Market

Energy Positions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

In Millions After-Tax

 

 

Q1

 

 

Q2

 

 

Q3

 

 

Year-to-Date

 
                             

 

Power

 

$

(0.6

)

$

(9.5

)

$

4.4

 

$

(5.7

)

 

Holdings

 

 

(19.0

)

 

16.4

 

 

13.2

 

 

10.6

 

 

Total

 

$

(19.6

)

$

6.9

 

$

17.6

 

$

4.9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EPS Impact

 

 

Q1

 

 

Q2

 

 

Q3

 

 

Year-to-Date

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Power

 

$

—

 

$

(0.02

)

$

0.01

 

$

(0.01

)

 

Holdings

 

 

(0.04

)

 

0.03

 

 

0.03

 

 

0.02

 

 

Total

 

$

(0.04

)

$

0.01

 

$

0.04

 

$

0.01

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Attachment 13

PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED

NDT Imapcts

(Unaudited)
September 30, 2008

2008 NDT Fund Activity

 

In Millions

 

Q1

 

Q2

 

Q3

 

YTD

 

Net Gains, Interest & Dividends

 

$

29.6

 

$

35.8

 

$

47.7

 

$

113.1

 

Other Than Temporarily Impaired (OTTI)

 

 

(37.6

)

 

(32.7

)

 

(65.0

)

 

(135.3

)

Accretion, Depreciation & Other

 

$

(3.7

)

$

(5.9

)

$

(1.8

)

$

(11.4

)

Net Pre-tax

 

 

(11.7

)

 

(2.8

)

 

(19.1

)

 

(33.6

)

2008 EPS Impact

 

$

(0.01

)

$

(0.01

)

$

(0.02

)

$

(0.04

)

 

2007 NDT Fund Activity

 

In Millions

 

Q1

 

Q2

 

Q3

 

YTD

 

Net Gains, Interest & Dividends

 

$

28.7

 

$

25.9

 

$

24.1

 

$

78.7

 

Other Than Temporarily Impaired (OTTI)

 

 

(10.0

)

 

(14.0

)

 

(16.0

)

 

(40.0

)

Accretion, Depreciation & Other

 

$

(7.8

)

$

(7.1

)

$

(6.4

)

$

(21.3

)

Net Pre-tax

 

 

10.9

 

 

4.8

 

 

1.7

 

 

17.4

 

2007 EPS Impact

 

$

0.01

 

$

0.01

 

$

0.00

 

$

0.02

 

 

Attachment 14

PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED

Reconciling Items Excluded from Continuing Operations to Compute Operating Earnings

(Unaudited)

 

 

 

For the Quarters Ended
September 30,

 

 

For the Nine Months Ended
September 30,

 

Pro-forma Adjustments

 

2008

 

2007

 

2008

 

2007

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings Impact (in Millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Lease Transaction Reserves, net of tax

 

$

—

 

$

—

 

$

(490

)

$

—

 

Loss from write-down of Turboven, net of tax

 

 

—

 

 

(7

)

 

—

 

 

(7

)

Premium on Bond Redemption, net of tax

 

 

—

 

 

—

 

 

(1

)

 

—

 

Total Pro-forma to Operating Earnings

 

$

—

 

$

(7

)

$

(491

)

$

(7

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fully Diluted Average Shares Outstanding (in Millions)

 

 

508

 

 

509

 

 

509

 

 

508

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Per Share Impact (Diluted)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Lease Transaction Reserves, net of tax

 

$

—

 

$

—

 

$

(0.96

)

$

—

 

Loss from write-down of Turboven, net of tax

 

 

—

 

 

(0.01

)

 

—

 

 

(0.01

)

Premium on Bond Redemption, net of tax

 

 

—

 

 

—

 

 

—

 

 

—

 

Total Pro-forma to Operating Earnings

 

$

—

 

$

(0.01

)

$

(0.96

)

$

(0.01

)