-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, HAhvvOSvR8t5RSSPC4zDJYfDNvOIzj1bMVnCUph1ZIiJ5Pl2AS508EgMLUpCQtv0 MtMVWF6cVW6szfHqEa+lbA== 0000950117-04-000500.txt : 20040202 0000950117-04-000500.hdr.sgml : 20040202 20040202172845 ACCESSION NUMBER: 0000950117-04-000500 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20040127 ITEM INFORMATION: ITEM INFORMATION: Other events FILED AS OF DATE: 20040202 FILER: COMPANY DATA: COMPANY CONFORMED NAME: PUBLIC SERVICE ENTERPRISE GROUP INC CENTRAL INDEX KEY: 0000788784 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC & OTHER SERVICES COMBINED [4931] IRS NUMBER: 222625848 STATE OF INCORPORATION: NJ FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-09120 FILM NUMBER: 04560211 BUSINESS ADDRESS: STREET 1: CORPORATE ACCOUNTING SERVICES STREET 2: 80 PARK PLAZA, 9TH FLOOR CITY: NEWARK STATE: NJ ZIP: 07102-4194 BUSINESS PHONE: 973-430-7000 MAIL ADDRESS: STREET 1: CORPORATE ACCOUNTING SERVICES STREET 2: 80 PARK PLAZA, 9TH FLOOR CITY: NEWARK STATE: NJ ZIP: 07102-4194 FILER: COMPANY DATA: COMPANY CONFORMED NAME: PUBLIC SERVICE ELECTRIC & GAS CO CENTRAL INDEX KEY: 0000081033 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC & OTHER SERVICES COMBINED [4931] IRS NUMBER: 221212800 STATE OF INCORPORATION: NJ FISCAL YEAR END: 0717 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-00973 FILM NUMBER: 04560218 BUSINESS ADDRESS: STREET 1: CORPORATE ACCOUNTING SERVICES STREET 2: 80 PARK PLAZA, 9TH FLOOR CITY: NEWARK STATE: NJ ZIP: 07102-4194 BUSINESS PHONE: 973-430-7000 MAIL ADDRESS: STREET 1: CORPORATE ACCOUTNING SERVICES STREET 2: 80 PARK PLAZA, 9TH FLOOR CITY: NEWARK STATE: NJ ZIP: 07102-4194 FILER: COMPANY DATA: COMPANY CONFORMED NAME: PSEG ENERGY HOLDINGS LLC CENTRAL INDEX KEY: 0001089206 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC SERVICES [4911] IRS NUMBER: 222983750 STATE OF INCORPORATION: NJ FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-32503 FILM NUMBER: 04560215 BUSINESS ADDRESS: STREET 1: 80 PARK PLAZA STREET 2: 22ND FLOOR CITY: NEWARK STATE: NJ ZIP: 07102-4194 BUSINESS PHONE: 973-456-3581 MAIL ADDRESS: STREET 1: 80 PARK PLAZA STREET 2: 22ND FLOOR CITY: NEWARK STATE: NJ ZIP: 07102-4194 FORMER COMPANY: FORMER CONFORMED NAME: PSEG ENERGY HOLDINGS INC DATE OF NAME CHANGE: 19990621 FILER: COMPANY DATA: COMPANY CONFORMED NAME: PSEG POWER LLC CENTRAL INDEX KEY: 0001158659 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC SERVICES [4911] IRS NUMBER: 223663480 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-49614 FILM NUMBER: 04560213 BUSINESS ADDRESS: STREET 1: 80 PARK PLAZA T-6 STREET 2: ` CITY: NEWARK STATE: NJ ZIP: 07111 BUSINESS PHONE: 9734307000 MAIL ADDRESS: STREET 1: 80 PARK PLAZA T-6 CITY: NEWARK STATE: NJ ZIP: 07111 8-K 1 a36934.txt PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED ================================================================================ UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported) January 27, 2004 PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED (Exact name of registrant as specified in its charter) New Jersey 001-09120 22-2625848 (State or other (Commission File Number) (I.R.S. Employer jurisdiction of incorporation) Identification No.) 80 Park Plaza, P.O. Box 1171 Newark, New Jersey 07101-1171 (Address of principal executive offices) (Zip Code) 973-430-7000 (Registrant's telephone number, including area code) http://www.pseg.com PSEG POWER LLC (Exact name of registrant as specified in its charter) Delaware 000-49614 22-3663480 (State or other (Commission File Number) (I.R.S. Employer jurisdiction of incorporation) Identification No.) 80 Park Plaza, T-25 Newark, New Jersey 07102-4194 (Address of principal executive offices) (Zip Code) 973-430-7000 (Registrant's telephone number, including area code) http://www.pseg.com PUBLIC SERVICE ELECTRIC AND GAS COMPANY (Exact name of registrant as specified in its charter) New Jersey 001-00973 22-1212800 (State or other (Commission File Number) (I.R.S. Employer jurisdiction of incorporation) Identification No.) 80 Park Plaza, P.O. Box 570 Newark, New Jersey 07101-0570 (Address of principal executive offices) (Zip Code) 973-430-7000 (Registrant's telephone number, including area code) http://www.pseg.com PSEG ENERGY HOLDINGS L.L.C. (Exact name of registrant as specified in its charter) New Jersey 000-32503 22-2983750 (State or other (Commission File Number) (I.R.S. Employer jurisdiction of incorporation) Identification No.) 80 Park Plaza, T-20 Newark, New Jersey 07102-4194 (Address of principal executive offices) (Zip Code) 973-456-3581 (Registrant's telephone number, including area code) http://www.pseg.com ================================================================================ The information contained in Item 5. Other Events in this combined Form 8-K is separately filed by Public Service Enterprise Group Incorporated (PSEG), Public Service Electric and Gas Company (PSE&G), PSEG Power LLC (Power) and PSEG Energy Holdings L.L.C. (Energy Holdings). The information contained in Item 12. Results of Operations and Financial Condition in this Form 8-K is furnished solely for PSEG. Information contained herein relating to any individual company is provided by such company on its own behalf and in connection with its respective Form 8-K. PSE&G, Power and Energy Holdings each makes representations only as to itself and makes no other representations whatsoever as to any other company. Item 5. Other Events PSEG Announces 2003 Results - --------------------------- On January 27, 2004, the following unaudited results were announced for PSEG, PSE&G, Power and Energy Holdings. Income from Continuing Operations for the year ended December 31, 2003 was $852 million, $247 million, $474 million and $189 million for PSEG, PSE&G, Power and Energy Holdings, respectively. As required by generally accepted accounting principles (GAAP), Income from Continuing Operations for PSE&G and Energy Holdings does not include preferred stock dividends of $4 million and $23 million, respectively. Net Income for PSEG, or Earnings Available to PSEG with respect to PSE&G, Power and Energy Holdings, for the year ended December 31, 2003 was $1,166 million, $225 million, $844 million and $128 million, respectively. PSEG also announced that prior period financial statements for Energy Holdings and PSEG will be restated in their respective 2003 Form 10-K's for the years ended December 31, 2002 and 2001 to correct foreign currency translation/transaction impacts of Energy Holdings' equity method investment in RGE, a distribution company in Brazil, and other minor items. The restatement reduced PSEG's and Energy Holdings' Common Stockholders'/Member's Equity at December 31, 2002 by approximately $100 million, which includes a negative impact of about $0.04 and $0.03 per share for the years ended December 31, 2002 and 2001, respectively. Nuclear Regulatory Commission (NRC) Request - ------------------------------------------- On January 30, 2004, PSEG announced that it was initiating an in-depth self- assessment of the work environment at its Salem and Hope Creek nuclear generating facilities in response to a request from the NRC. A copy of the press release dated January 30, 2004 relating to this matter is attached as exhibit 99.1 to this form 8-K. Item 12. Results of Operations and Financial Condition On January 27, 2004, PSEG announced unaudited financial results for the year ended December 31, 2003. A copy of the earnings release dated January 27, 2004 is furnished as Exhibit 99 to this Form 8-K. The information contained in this report is being furnished pursuant to Item 12 as directed by the U.S. Securities and Exchange Commission. To supplement PSEG's consolidated financial statements presented in accordance with GAAP, the Company uses non-GAAP measures of pro forma operating income and pro forma operating income per share which does not include losses relating to the impairment and operations of Energy Holdings' Argentine investments in 2002. PSEG's management reviews these non-GAAP measures internally to evaluate the Company's performance and manage its operations. The Company believes that the inclusion of non-GAAP financial measures provides consistent and comparable measures to help shareholders understand PSEG's current and future operating results. PSEG urges shareholders to carefully review the GAAP financial information included as part of PSEG's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and quarterly earnings releases. 2 SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. The signature of the undersigned company shall be deemed to relate only to matters having reference to such company and any subsidiaries thereof. PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED (Registrant) By: /s/ Patricia A. Rado ---------------------- Patricia A. Rado Vice President and Controller (Principal Accounting Officer) Date: February 2, 2004 3 SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. The signature of the undersigned company shall be deemed to relate only to matters having reference to such company and any subsidiaries thereof. PUBLIC SERVICE ELECTRIC AND GAS COMPANY (Registrant) By: /s/ Patricia A. Rado ---------------------- Patricia A. Rado Vice President and Controller (Principal Accounting Officer) Date: February 2, 2004 4 SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. The signature of the undersigned company shall be deemed to relate only to matters having reference to such company and any subsidiaries thereof. PSEG POWER LLC (Registrant) By: /s/ Patricia A. Rado ---------------------- Patricia A. Rado Vice President and Controller (Principal Accounting Officer) Date: February 2, 2004 5 SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. The signature of the undersigned company shall be deemed to relate only to matters having reference to such company and any subsidiaries thereof. PSEG ENERGY HOLDINGS L.L.C. (Registrant) By: /s/ Derek M. DiRisio ---------------------- Derek M. DiRisio Vice President and Controller (Principal Accounting Officer) Date: February 2, 2004 6 EX-99 3 ex99.txt EXHIBIT 99 EXHIBIT 99 [PSEG Investor News LOGO] NYSE:PEG For further information, contact: o Brian Smith, Director, Investor Relations Phone: 973-430-6564 o Sue Carson, Director, Financial Communications Phone: 973-430-6565 o Greg McLaughlin, Sr. Investor Relations Analyst Phone: 973-430-6568 - -------------------------------------------------------------------------------- January 30, 2004 PSEG ANNOUNCES 2003 RESULTS: $3.72 PER SHARE FROM CONTINUING OPERATIONS Reflecting Solid Performance in a Year of Uncertainty, Earnings Are Well Within Guidance As Fourth Quarter Yields 69 Cents Per Share Company Reiterates Initial 2004 EPS Guidance Of $3.60 to $3.80 Per Share from Continuing Operations Public Service Enterprise Group (PSEG) announced today (January 27, 2004) that earnings from continuing operations for the year 2003 were a record $852 million or $3.72 per share of common stock, based on 229 million average shares outstanding. These results exclude a gain of $370 million or $1.62 per share associated with the adoption of a new accounting standard for fossil and nuclear decommissioning and also exclude losses totaling $56 million or 25 cents per share related to discontinued operations at PSEG Energy Holdings and to an extraordinary item related to the finalization of Public Service Electric and Gas Company's (PSE&G) electric base rate case. Including these items, PSEG's net income for 2003 was $1.166 billion or $5.09 per share of common stock. PSEG also announced today that earnings from continuing operations for the fourth quarter of 2003 were $164 million or 69 cents per share, based on 236 million average shares outstanding. These results exclude a loss of $19 million or 8 cents per share associated with the discontinued operations at a generating facility in Rades,Tunisia in which PSEG Global, a subsidiary of Energy Holdings, had invested. Including this charge, PSEG's net income for the fourth quarter was $145 million or 61 cents per share of common stock. Attachments to this release provide a summary of 2003 and 2002 results and details of the quarterly and annual results for PSEG and its principal subsidiaries - PSE&G, PSEG Power and PSEG Energy Holdings. The results reflect the restatement of prior period financial statements to correct foreign currency translation impacts of Energy Holdings' equity method investment in RGE, a distribution company in Brazil and other minor items. The restatement reduced equity at December 31, 2002 by approximately $100 million, which includes a negative impact of about four cents per share on 2002 results and about three cents per share on 2001 results. These corrections will be addressed in more detail in the 2003 10-K filing. "Despite the effects of Hurricane Isabel and other storms, our business segments made generally solid contributions in 2003 that enabled PSEG to produce record results," said E. James Ferland, chairman and chief executive officer. "Our earnings of $852 million from ongoing operations, which were about 10% higher than comparable 2002 earnings, clearly reflected our fundamental strengths." While total earnings were considerably higher, Ferland explained that the issuance of additional common stock in both 2002 and 2003 resulted in generally comparable earnings per share. "However, the additional equity on the balance sheet helped substantially in our efforts to improve our credit profile," he said. "We also appreciate that the financial marketplace recognized our efforts during a year of uncertainty for the utility sector," Ferland said. "PSEG's total return for 2003 - a combination of stock price appreciation and dividend - was about 44%, placing us among the top performers for the year." Ferland said improving shareholder value remains a key strategic focus for PSEG. On January 20, the company's board of directors raised the company's common stock dividend from 54 to 55 cents per share for the first quarter of 2004. This quarterly increase reflects an indicated annual dividend rate of $2.20 per share. PSEG has paid annual dividends on an uninterrupted basis since 1907, Ferland noted. "Based on our long-range business outlook and the improved tax treatment afforded dividends by the 2003 Tax Reform Act, we felt the time was right to increase the dividend," Ferland said. "Our objective is to continue modest increases in future years provided we achieve our financial expectations." In discussing 2003 results, Ferland said a major driver was a $160 million annual electric rate increase authorized by the Board of Public Utilities. "The increase, which was the first in more than a decade, returned PSE&G's electric earnings to a reasonable level and, more importantly, marked the conclusion of a very successful restructuring of the electric industry in New Jersey," Ferland said. Two other key factors for the year involved PSEG Power, Ferland said. "Power benefited from its successful participation in New Jersey's second basic generation service (BGS) auction and also from a full year's ownership of generating facilities in Connecticut, " he said. "Unfortunately, these benefits were offset by increased costs, due in part to the effects of Hurricane Isabel and other storms, which caused brief shutdowns of Power's nuclear facilities." Ferland said PSEG's 2003 performance reflected overall reliable and safe operations. "Power's nuclear plants had an aggregate capacity factor of 88%. This was lower than anticipated in part because of the severe storms. Expected performance in 2004 should bring the nuclear capacity factor into the 90% range assuming normal conditions. PSEG Global's domestic and international operations also performed well in 2003." Ferland said the company remained focused on balance sheet improvement in 2003. "We started the year with a debt ratio, as defined by our parent lenders, of 61% and an objective to reduce it below 59%," Ferland said. "At year end, our debt ratio had declined to 57%." He said PSEG's total equity increased by about $1.6 billion to approximately $5.5 billion in 2003. This included about $670 million of retained earnings and $439 million of common stock issued through a public offering in October and through the dividend reinvestment plan during the year. The remainder represented an increase in Other Comprehensive Income (OCI) due primarily to the effects of pension fund and foreign currency improvements. A combination of pension fund earnings of almost 25% for the year and ongoing contributions to the pension fund by the company resulted in the elimination of a $292 million charge to equity that was recorded at the end of 2002. In looking ahead, Ferland said the company is reiterating its initial 2004 EPS guidance of $3.60 to $3.80 per share from continuing operations. He said actual results for the year would depend on, among other factors, the outcome of the BPU's third BGS auction, scheduled to be held in early February. He added that this year's results could also be impacted by the outcome of similar auctions in other states in which Power, as a wholesale energy provider, may choose to participate. "Future earnings performance beyond this year will also depend on many factors, particularly improvement in PJM generation capacity prices, which are currently at historic lows," Ferland said. 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, among other things: the effects of weather; the performance of generating units and transmission systems; the availability and prices for oil, gas, coal, nuclear fuel, capacity and electricity; changes in the markets for electricity and other energy-related commodities; changes in the number of participants and the risk profile of such participants in the energy marketing and trading business; the effectiveness of our risk management and internal controls systems; the effects of regulatory decisions and changes in law; changes in competition in the markets we serve; the ability to recover regulatory assets and other potential stranded costs; the outcomes of litigation and regulatory proceedings or inquiries; the timing and success of efforts to develop domestic and international power projects; conditions of the capital markets and equity markets; advances in technology; changes in accounting standards; changes in interest rates and in financial and foreign currency markets generally; the economic and political climate and growth in the areas in which we conduct our activities; and changes in corporate strategies. For further information, please refer to our Annual Report on Form 10-K 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. Attachment 1 PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED December 31, 2003 (Unaudited)
Fourth Quarter Year Ended -------------------- ----------------- 2002 2002 As Restated As Restated 2003 (Note 3) 2003 (Note 3) ------ ----------- ------ ---------- Earnings Results (in Millions) Income from Ongoing Operations PSE&G $ 54 $ 72 $ 243 $ 201 PSEG Power 78 144 474 468 PSEG Energy Holdings PSEG Global* 23 (3) 104 54 PSEG Resources 17 48 66 78 PSEG Energy Holdings (1) (3) (4) (7) ------ ------ ------ ------ Total PSEG Energy Holdings* 39 42 166 125 ------ ------ ------ ------ PSEG (7) (7) (31) (21) ------ ------ ------ ------ Income from Ongoing Operations* $ 164 $ 251 $ 852 $ 773 ====== ====== ====== ====== Write-down of Argentine Investments, net of tax -- 5 -- (329) Operating Income / (Loss) from Argentina, net of tax -- -- -- (39) ====== ====== ====== ====== Income from Continuing Operations $ 164 $ 256 $ 852 $ 405 ====== ====== ====== ====== Extraordinary Item -- -- (18) -- Loss from Discontinued Operations, including Loss on Disposal (19) (10) (38) (49) Cumulative Effect of a Change in Accounting Principle -- -- 370 (121) ====== ====== ====== ====== PSEG Net Income $ 145 $ 246 $1,166 $ 235 ====== ====== ====== ====== Fully Diluted Average Shares Outstanding (in Millions) 236 216 229 209 ====== ====== ====== ====== Per Share Results (Diluted) Income from Ongoing Operations PSE&G $ 0.23 $ 0.34 $ 1.06 $ 0.96 PSEG Power 0.33 0.66 2.07 2.24 PSEG Energy Holdings PSEG Global* 0.10 (0.01) 0.46 0.26 PSEG Resources 0.07 0.22 0.29 0.38 PSEG Energy Holdings (0.01) (0.01) (0.02) (0.04) ------ ------ ------ ------ Total PSEG Energy Holdings* 0.16 0.20 0.73 0.60 ------ ------ ------ ------ PSEG (0.03) (0.03) (0.14) (0.10) ------ ------ ------ ------ Income from Ongoing Operations* $ 0.69 $ 1.17 $ 3.72 $ 3.70 ====== ====== ====== ====== Write-down of Argentine Investments, net of tax -- 0.02 -- (1.57) Operating Income / (Loss) from Argentina, net of tax -- -- -- (0.19) ====== ====== ====== ====== Income from Continuing Operations $ 0.69 $ 1.19 $ 3.72 $ 1.94 ====== ====== ====== ====== Extraordinary Item - -- (0.08) -- Loss from Discontinued Operations, including Loss on Disposal (0.08) (0.05) (0.17) (0.23) Cumulative Effect of a Change in Accounting Principle -- -- 1.62 (0.58) ====== ====== ====== ====== PSEG Net Income $ 0.61 $ 1.14 $ 5.09 $ 1.13 ====== ====== ====== ======
* 2002 amounts exclude write-downs and/or operating income/(losses) relating to Argentine investments totaling $5 million or $0.02 per share and ($368) million or ($1.76) per share for the quarter and year to date periods ended December 31, 2002, respectively. Note 1: Income from Ongoing and Continuing Operations includes preferred stock dividends relating to PSE&G of $1 million and $4 million, Global of $4 million and $17 million and Resources of $2 million and $6 million for the quarters and years ended December 31, 2003 and 2002, respectively. Note 2: Basic Earnings per Share from Continuing Operations were $0.70 and $3.73 for the quarter and year ended December 31, 2003. Basic Earnings per Share for Net Income was $5.11 for the year ended December 31, 2003. There was no dilutive effect to Earnings per Share in 2002. Note 3: 2002 results reflect the restatement to correct foreign currency translation impacts of Energy Holdings' equity method investment in RGE, a distribution company in Brazil, and other minor items. The total impact of the restatement for 2002 resulted in a reduction of Global's net income of approximately $0.04 per share. Attachment 2 PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED For the Three Months Ending December 31, 2003 2003 vs. 2002 (unaudited) PSEG 4th Quarter 2002 Net Income (as restated)* $ 1.14 ------ Loss from Discontinued Operations (ET and Global's investments in Tanir Bavi and Rades) (as restated) 0.05 Income from Operations of Impaired Assets (Argentina) (0.02) ------ PSEG 4th Quarter 2002 Income from Ongoing Operations (as restated)*: $ 1.17 ------ PSE&G B/(W) 4th Quarter 2002 $ 0.34 ------ Improved Margins (new electric base rates, weather, $(0.04), and other) 0.03 Increased O&M and Other costs (higher pension, medical, bad debts (gas)) (0.12) Additional Shares Outstanding (2002 and 2003 Issuance, DRIP) (0.02) ------ 4th Quarter 2003 $ 0.23 $(0.11) ------ PSEG Power 4th Quarter 2002 $ 0.66 ------ Lower operating margins mainly due to seasonality of new BGS contracts and increased nuclear outages, partially offset by the Connecticut acquisition and the ODEC contract resolution (0.21) Increased O&M and Other costs (Connecticut plants, higher pension, restructuring and other operational costs) (0.17) Interest, Dividends and Realized gains from NDT Fund 0.07 Additional Shares Outstanding (2002 and 2003 Issuance, DRIP) (0.02) ------ 4th Quarter 2003 $ 0.33 $(0.33) ------ PSEG Energy Holdings 4th Quarter 2002 (as restated)* $ 0.20 ------ Global Improved Earnings from Operations (SAESA, Prisma, TIE partially offset by GWF) 0.11 Resources Impact of 2002 change in corporate structure (0.10) Operations (lower earnings from leveraged lease porfolio) (0.05) (0.15) ----- Holdings -- ------ 4th Quarter 2003 $ 0.16 $(0.04) ------ Public Service Enterprise Group 4th Quarter 2002 $(0.03) ------ 4th Quarter 2003 $(0.03) $ -- ------ PSEG 4th Quarter 2003 Income from Ongoing Operations $ 0.69 ------ Loss from Discontinued Operations (ET and Global's investment in Rades) (0.08) PSEG 4th Quarter 2003 Net Income $ 0.61 ------
* See Attachment 1, Note 3 for further details regarding the 2002 restatement. Attachment 3 PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED For the Year Ending December 31, 2003 2003 vs. 2002 (unaudited) PSEG 2002 Net Income (as restated)* $ 1.13 ------ Cumulative Effect of a Change in Accounting Principle (Goodwill at ET and Global's investments) 0.58 Loss from Discontinued Operations (ET and Global's investments in Tanir Bavi and Rades)- (as restated) 0.23 PSEG 2002 Income from Continuing Operations (as restated)* 1.94 ------ Loss from Operations of Impaired Assets (Argentina)(as restated)* 1.76 PSEG 2002 Income from Ongoing Operations (as restated)*: $ 3.70 ------ PSE&G B/(W) Year Ended December 31, 2002 $ 0.96 ------ Improved Margins (new electric base rates, weather, $0.14, and other) 0.38 Increased O&M and Other costs (higher pension, medical, bad debts (gas), storm-related costs and other) (0.24) Lower Interest Costs 0.05 Additional Shares Outstanding (2002 and 2003 Issuance, DRIP) (0.09) Year Ended December 31, 2003 $ 1.06 $ 0.10 ------ PSEG Power Year Ended December 31, 2002 $ 2.24 ------ Margins: Improved operating margins from the acquisition of Connecticut plants, a full period of BGSS margins, margins associated with ODEC contract rates and strong results from trading 0.25 Storm-related replacement power costs at Nuclear (0.07) ----- Net Improved Margins 0.18 Increased O&M and Other costs (Connecticut plants, higher pension, restructuring and other operational costs) (0.37) Interest, Dividends and Realized gains from NDT Fund 0.17 Additional Shares Outstanding (2002 and 2003 Issuance, DRIP) (0.15) Year Ended December 31, 2003 $ 2.07 $(0.17) ------ PSEG Energy Holdings Year Ended December 31, 2002 (as restated)* $ 0.60 ------ Global Improved earnings from operations- (TIE, SAESA and Prisma) 0.17 Currency transactions related to RGE 0.05 Additional Shares Outstanding (2002 and 2003 Issuance, DRIP) (0.02) 0.20 ----- Resources KKR Performance 0.09 Impact of 2002 change in corporate structure (0.10) Operations (lower earnings from leveraged lease porfolio) (0.06) Additional Shares Outstanding (2002 and 2003 Issuance, DRIP) (0.02) (0.09) ----- Holdings 0.02 Year Ended December 31, 2003 $ 0.73 $ 0.13 ------ Public Service Enterprise Group Year Ended December 31, 2002 $(0.10) Increased financing costs (0.04) Year Ended December 31, 2003 $(0.14) $(0.04) ------ PSEG 2003 Income from Ongoing Operations $ 3.72 ------ Loss from Discontinued Operations (ET and Global's investment in Rades) (0.17) Extraordinary Item (PSE&G - electric rate case) (0.08) Cumulative Effect of a Change in Accounting Principle (Asset Retirement Obligation at Power) 1.62 ------ PSEG 2003 Net Income $ 5.09 ------ * See Attachment 1, Note 3 for further details regarding the 2002 restatement.
Attachment 4 PUBLIC SERVICE ELECTRIC & GAS Electric and Gas Sales to Customers December 2003 Electric Sales Millions of Kilowatthours
Three Change vs Twelve Change vs Months Ended 2002 Months Ended 2002 ------------ --------- ------------ --------- Residential 2,854 -2.0% 12,801 -0.5% Commercial 5,493 4.5% 22,280 2.4% Industrial 1,564 -3.6% 6,622 -2.4% Total 1.2% 0.7%
Gas Sold and Transported Millions of Therms
Three Change vs Twelve Change vs Months Ended 2002 Months Ended 2002 ------------ --------- ------------ --------- Residential Sales 462 -7.1% 1,542 14.2% Commercial - Firm Sales 173 -9.6% 613 13.7% Commercial - Interr. & Cogen 12 -16.7% 47 -18.0% Industrial - Firm Sales 16 -17.3% 57 4.8% Industrial - Interr. & Cogen 120 -16.6% 510 -4.6% Total -9.6% 9.2% Gas Transported 300 -9.4% 1,345 12.6%
EX-99 4 ex99-1.txt EXHIBIT 99.1 EXHIBIT 99.1 [PSEG Investor News LOGO] NYSE:PEG For further information, contact: o Brian Smith, Director, Investor Relations Phone: 973-430-6564 o Sue Carson, Director, Financial Communications Phone: 973-430-6565 o Greg McLaughlin, Sr. Investor Relations Analyst Phone: 973-430-6568 - -------------------------------------------------------------------------------- January 30, 2004 PSEG RESPONDS TO NRC REQUEST FOR WORK ENVIRONMENT SELF-ASSESSMENT AT SALEM AND HOPE CREEK NUCLEAR PLANTS Public Service Enterprise Group (PSEG) said today (January 30, 2004) that it has initiated an in-depth self-assessment of the work environment at its Salem and Hope Creek nuclear facilities in New Jersey. The self-assessment stems from a request by the Nuclear Regulatory Commission (NRC) in a letter dated January 28, 2004 to E. James Ferland, chairman of PSEG. The letter discusses a review by the NRC of Salem and Hope Creek to assess the environment for raising and addressing safety issues. The NRC's letter is scheduled to be posted on its web site: www.nrc.gov. The letter acknowledges recent management changes to improve the work environment at the nuclear facilities but requested that PSEG conduct its own in-depth assessment and provide a plan of action for addressing various issues. Ferland issued the following statement today: The NRC's letter addresses workplace environment issues that we have been fully aware of for a period of time. Our reorganization last year, including the addition of Roy Anderson as Chief Nuclear Officer, addressed many of these issues. Roy recently completed a structural reorganization at Salem and Hope Creek. This reorganization involved significant operational changes at all the facilities and the introduction of several new members of our management team. We are pleased that the NRC has recognized the management realignment that has occurred and the positive response it has generated at the stations. We are also aware that we must work diligently to continue this improvement in the workplace environment and believe we have the resources and organization to do so. As requested by the NRC, we will be conducting our own in-depth assessment of the work environment at our nuclear plants and will implement any necessary changes to continue to make progress. ### 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, among other things: the effects of weather; the performance of generating units and transmission systems; the availability and prices for oil, gas, coal, nuclear fuel, capacity and electricity; changes in the markets for electricity and other energy-related commodities; changes in the number of participants and the risk profile of such participants in the energy marketing and trading business; the effectiveness of our risk management and internal controls systems; the effects of regulatory decisions and changes in law; changes in competition in the markets we serve; the ability to recover regulatory assets and other potential stranded costs; the outcomes of litigation and regulatory proceedings or inquiries; the timing and success of efforts to develop domestic and international power projects; conditions of the capital markets and equity markets; advances in technology; changes in accounting standards; changes in interest rates and in financial and foreign currency markets generally; the economic and political climate and growth in the areas in which we conduct our activities; and changes in corporate strategies. For further information, please refer to our Annual Report on Form 10-K 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. -----END PRIVACY-ENHANCED MESSAGE-----