EX-99.1 3 dex991.htm SLIDESHOW PRESENTATION Slideshow Presentation
Public Service Enterprise Group
PSEG Earnings Conference Call
2
nd
Quarter
2010
July 30, 2010
Exhibit 99.1

1
Forward-Looking Statement
Readers
are
cautioned
that
statements
contained
in
this
presentation
about
our
and
our
subsidiaries'
future
performance,
including
future
revenues,
earnings,
strategies,
prospects,
consequences
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.
When
used
herein,
the
words
“anticipate”,
“intend”,
“estimate”,
“believe”,
“expect”,
“plan”,
“should”,
“hypothetical”,
“potential”,
“forecast”,
“project”,
variations
of
such
words
and
similar
expressions
are
intended
to
identify
forward-looking
statements.
Although
we
believe
that
our
expectations
are
based
on
reasonable
assumptions,
they
are
subject
to
risks
and
uncertainties
and
we
can
give
no
assurance
they
will
be
achieved.
The
results
or
developments
projected
or
predicted
in
these
statements
may
differ
materially
from
what
may
actually
occur.
Factors
which
could
cause
results
or
events
to
differ
from
current
expectations
include,
but
are
not
limited
to:
•
Adverse
changes
in
energy
industry
law,
policies
and
regulation,
including
market
structures,
transmission
planning
and
rules,
and
reliability
standards.
•
Any
inability
of
our
transmission
and
distribution
businesses
to
obtain
adequate
and
timely
rate
relief
and
regulatory
approvals
from
federal
and state regulators.
•
Changes
in
federal
and
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
located
on
a
multi-unit
site
that
might
adversely
affect
our
ability
to
continue
to
operate
that
unit
or
other
units located at the same site.
•
Any
inability
to
balance
our
energy
obligations,
available
supply
and
trading
risks.
•
Any
deterioration
in
our
credit
quality.
•
Availability
of
capital
and
credit
at
commercially
reasonable
terms
and
conditions
and
our
ability
to
meet
cash
needs.
•
Any
inability
to
realize
anticipated
tax
benefits
or
retain
tax
credits.
•
Changes
in
the
cost
of,
or
interruption
in
the
supply
of,
fuel
and
other
commodities
necessary
to
the
operation
of
our
generating
units.
•
Delays
in
receipt
of
necessary
permits
and
approvals
for
our
construction
and
development
activities.
•
Delays
or
unforeseen
cost
escalations
in
our
construction
and
development
activities.
•
Increase
in
competition
in
energy
markets
in
which
we
compete.
•
Adverse
performance
of
our
decommissioning
and
defined
benefit
plan
trust
fund
investments
and
changes
in
discount
rates
and
funding
requirements.
•
Changes
in
technology
and
customer
usage
patterns.
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
presentation.
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
internal
estimates
change,
unless
otherwise
required
by
applicable
securities
laws. 

2
GAAP Disclaimer
PSEG presents Operating Earnings in addition to its Net Income reported
in accordance with accounting principles generally accepted in the United
States (GAAP). Operating Earnings is a non-GAAP financial measure that
differs from Net Income because it excludes gains or losses associated
with Nuclear Decommissioning Trust (NDT), Mark-to-Market (MTM)
accounting, and other material one-time items. PSEG presents Operating
Earnings because management believes that it is appropriate for investors
to consider results excluding these items in addition to the results reported
in accordance with GAAP. PSEG believes that the non-GAAP financial
measure of Operating Earnings provides a consistent and comparable
measure of performance of its businesses to help shareholders
understand performance trends.
This information is not
intended to be
viewed as an alternative to GAAP information. The last two slides in this
presentation include a list of items excluded from Income from Continuing
Operations to reconcile to Operating Earnings, with a reference to that
slide included on each of the slides where the non-GAAP information
appears.

PSEG
2010 Q2 Review
Ralph Izzo
Chairman, President and Chief Executive Officer
*
*
*
*
*
*
*
*
*
*

4
Q2 2010 Earnings Summary
$ 318
$ 331
Operating Earnings
$ 311
$ 224
Income from Continuing Operations /              
Net Income
(7)
(107)
Reconciling Items, Net of Tax
$ 0.63
$ 0.65
EPS from Operating Earnings*
2009
2010
$ millions (except EPS)
Quarter ended June 30              
* See page 33 for Items excluded from Income from Continuing Operations to reconcile to Operating Earnings.

5
Q2 2010 Earnings Summary
$ 800
$ 756    
Operating Earnings
$ 755
$ 715
Income from Continuing Operations /              
Net Income
(45)
(41)      
Reconciling Items, Net of Tax
$ 1.58
$ 1.49
EPS from Operating Earnings*
2009
2010
$ millions (except EPS)
Six months ended June 30           
* See page 34 for Items excluded from Income from Continuing Operations to reconcile to Operating Earnings.

6
PSEG –
Q2 2010
Focused on operational excellence
PSE&G focused on meeting reliability
Power’s generation volumes increased 20% quarter-over-quarter
Foundation laid for the future
BPU approved settlement of PSE&G electric and gas rate case
PSE&G aligning capital and O&M with revenue to ensure capability
of earning authorized return
Investments for the future
Susquehanna-Roseland in-service date delayed by 2 years
PSE&G assessing reliability enhancing transmission investments
Meeting Environmental Standards:  Completion of BET construction
on schedule for year-end 2010
Financing position
Debt financings lowered cost and extended maturities
Lease termination reduced potential tax liability to $550 million
$415 million contributed to pension trust
Focused on building a financially strong, environmentally friendly energy
business

7
2008 Operating Earnings*
2009 Operating Earnings*
2010 Guidance
$3.00 -
$3.25
PSEG –
Maintaining 2010 Guidance
$3.03
* See page 35 for Items excluded from Income from Continuing Operations to reconcile to Operating Earnings.                    
$3.12

PSEG
2010 Q2 Operating Company Review
Caroline Dorsa
Executive Vice President and Chief Financial Officer
*
*
*
*
*
*
*
*
*
*

9
Q2 Operating Earnings by Subsidiary
$    318
1
21
43
$   253
2009
$   331
5
12
75
$   239
2010
Operating Earnings
Earnings per Share
--
0.01
Enterprise
$   0.63
$   0.65
Operating Earnings*
0.04
0.02
PSEG Energy Holdings
0.09
0.15
PSE&G
$   0.50
$   0.47
PSEG Power
2009
2010
$ millions (except EPS)
Quarter ended June 30
* See page 33 for Items excluded from Income from Continuing Operations to reconcile to Operating Earnings.

10
Q2 Operating Earnings by Subsidiary
$ 800  
(3)
31
166
$606
2009
$ 756
8
19
192
$   537
2010
Operating Earnings
Earnings per Share
(0.01)
0.02
Enterprise
$   1.58
$   1.49
Operating Earnings*
0.06
0.03
PSEG Energy Holdings
0.33
0.38
PSE&G
$   1.20
$   1.06
PSEG Power
2009
2010
$ millions (except EPS)
Six months ended June 30
•See page 34 for Items excluded from Income from Continuing Operations to reconcile to Operating Earnings.

11
$0.65
0.01
(0.02)
0.06
(0.03)
$0.63
0.00
0.25
0.50
0.75
1.00
PSEG EPS Reconciliation –
Q2 2010 versus Q2 2009
Q2 2010       
operating
earnings*
Q2 2009       
operating
earnings*
Interest
Higher volume offset
by lower prices  
0.02
O&M 0.01
WPT (0.02)
Taxes  (0.02)
SO2 Impairment
(0.02)
PSEG Power
Weather 0.01
Margins:
Electric 0.03
Transmission  0.01
O&M 0.01
Taxes & Misc. 0.01
D&A (0.01)
PSE&G
PSEG Energy
Holdings
Enterprise
Lower gains on
lease sales and
lower project
earnings (0.05)
Tax Benefits for
Solar & Other
Projects 0.02
Interest 0.01
•See page 33 for Items excluded from Income from Continuing Operations to reconcile to Operating Earnings.

12
$1.49
0.03
(0.03)
0.05
(0.14)
$1.58
0.00
0.25
0.50
0.75
1.00
1.25
1.50
1.75
PSEG EPS Reconciliation –
YTD 2010 versus YTD 2009
YTD 2010       
operating
earnings*
YTD 2009       
operating
earnings*
Interest
Higher volume
offset by lower
prices (0.04)
WPT (0.05)
SO2 Impairment
(0.02)
BGSS (0.01)
D&A 0.01
Taxes  (0.01)
Increase in
effective tax rate
related to
healthcare
legislation (0.02)
PSEG Power
Weather (0.02)
Margins:
Electric 0.04
Transmission 
0.02
Appliance Service
0.01
Taxes & Misc.
0.02
O&M (0.01)
D&A (0.01)
PSE&G
PSEG Energy
Holdings
Enterprise
Lower gains on
lease sales and 
lower project
earnings (0.06)
Tax Benefits for
Solar and Other
Projects 0.02
Interest 0.01
* See page 34 for Items excluded from Income from Continuing Operations to reconcile to Operating Earnings.

PSEG Power
2010 Q2 Review
*
*
*
*
*
*
*
*
*
*

14
PSEG Power –
Q2 2010 EPS Summary
(21)
(24)
(45)
Mark-to-Market, Net of Tax
(7)
17
10
NDT Funds Related Activity,              
Net of Tax
($ 5)
$ 1,363
$ 1,358
Operating Revenues
($ 0.03)
$   0.50
$    0.47
EPS from Operating Earnings*
(42)
246
204
Income from Continuing Operations /
Net Income
(14)
253
239
Operating Earnings
Variance
Q2 2009
Q2 2010
$ millions (except EPS)
* See page 33 for Items excluded from Income from Continuing Operations to reconcile to Operating Earnings.

15
$0.50
0.02
(0.02)
(0.02)
$0.47
(0.01)
0.00
0.25
0.50
0.75
Higher
volume
offset by
lower
prices
PSEG Power EPS Reconciliation –
Q2 2010 versus Q2 2009
Q2 2010       
operating
earnings*
Q2 2009       
operating
earnings*
* See page 33 for Items excluded from Income from Continuing Operations to reconcile to Operating Earnings.
WPT
O&M 0.01
Taxes (0.02)
SO2
Impairment

16
PSEG Power –
Generation Measures
7,487
7,196
2,595
1,470
4,090
2,887
1,937
2,010
0
8,750
17,500
2010
2009
Quarter ended June 30
Total Nuclear
Total Coal*
Oil & Natural Gas
–
excluding
Texas
* Includes figures for Pumped Storage
PSEG Power –
Generation (GWh)
13,490
16,182
Oil & Natural Gas
-
Texas
PSEG Power –
Capacity Factors (%)
41%
43%
Texas
37%
52%
PJM and NY
Combined
Cycle
35%
83%
42%
95.0%
2010
30%
CT
80%
PA
20%
NJ
Coal
93.4%
Nuclear
2009
Six months ended June 30

17
PSEG Power –
Fuel Costs
178
236
Oil & Gas*
47
100
Coal
19.27
23.30
$ / MWh
13,490
16,182
Total Generation
(GWh)
260
377
Total Fuel Costs
35
41
Nuclear
Total Fossil
($ millions)
225
336
2009
2010
Quarter ended June 30
PSEG Power –
Fuel Costs
* Includes Texas.

18
PSEG Power –
Gross Margin Performance
$0
$25
$50
$75
2010
2009
2008
$63
$51
Quarter ended June 30
Volume increased 20% vs. year ago in response to weather-related demand
Margins influenced by BGS migration and impairment of excess SO2
emission
allowances
Decline in gross margin influenced
by lower spark spread.
$29
Texas
Regional Performance
$14
$20
$688
Q2 Gross
Margin ($M)
Q2 Performance
Region
Improvement in generation offset
by decline in price.
New York
Volumes and margins lower vs.
year ago, reflecting decline in dark
spreads.
New
England
Margin improvement aided by
strong weather-related demand
offset by lower pricing and ($0.01)
SO2 impairment.
PJM
PSEG Power Gross Margin ($/MWh)*
* Excludes Texas
Increase
in
generation
was
predominantly
from
combined
cycle
and
coal
with
continued
strong
nuclear.
$50

19
…
with sites in the eastern part of PJM.
Reliability
Pricing
Model
–
locational
value
of
Power’s
generating
fleet
recognized…
With nearly 1/3 of its capacity in PS North and nearly 2/3 of its capacity in MAAC and EMAAC,
Power’s assets in congested locations received higher pricing in the 2013/2014 RPM Auction.
•
Locational
value
of
Power’s
fleet recognized
•
Bid for 89 MW of new
capacity accepted for
2013/2014 auction; in-service
June 2013
•
On schedule to complete
178MW of previously cleared
peaking capacity by June
2012
$27.73
$16.46
$110.00
$174.29
$102.04
Rest of Pool
$245.00
$185.00
PSEG North Zone
$245.00
PSEG
$133.37
$139.73
2012 / 2013
$226.15
$245.00
2013/2014
$110.00
$174.29
$191.32
MAAC
$110.00
$174.29
$191.32
Eastern MAAC
2011 / 2012
2010 / 2011
2009 / 2010
$/MW-day
PJM Zones
0
2,000
4,000
6,000
8,000
10,000
12,000
09/10
10/11
11/12
12/13
13/14
PJM
Capacity
Available
to
Receive
Auction
Pricing

20
PSEG Power –
Q2 Operating Highlights
Q2 output + 20% added $0.05 to EPS
Q2 nuclear capacity factor at 92.6%
Combined cycle and coal units captured market opportunities
Operations
Regulatory and Market
Environment
Financial
Lower pricing reduced Q2 earnings ($0.03) per share which includes the impact
of customer migration of ($0.01) per share; mark-to-market related to lower
volumes on other full requirements contracts was ($0.02) per share
RPM auction results support locational
value of assets
Power on track to complete Back-End-Technology construction at Hudson and
Mercer by year-end
Bid accepted for 89 MW peaker
at Kearny for 2013 in-service
Power debt exchange to reduce financing cost and extend maturities

PSE&G
2010 Q2 Review
*
*
*
*
*
*
*
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*
*

22
PSE&G –
Q2 2010 Earnings Summary
28
1,493
1,465
Total Operating Expenses
(2)
26
28
Taxes Other than Income Taxes
Operating Expenses
62
979
917
Energy Costs
1
344
343
Operation & Maintenance
(33)
144
177
Depreciation & Amortization
$ 0.06
$ 0.09
$ 0.15
EPS from Operating Earnings*
32
43
75
Operating Earnings
($ 107)
$ 1,643
$ 1,536
Operating Revenues
Variance
Q2 2009
Q2 2010
$ millions (except EPS)
* See page 33 for Items excluded from Income from Continuing Operations to reconcile to Operating Earnings.

23
$0.09
0.04
0.01
0.01
$0.15
0.00
0.05
0.10
0.15
0.20
`
PSE&G EPS Reconciliation –
Q2 2010
versus Q2 2009
Q2 2010      
operating
earnings*
Q2 2009       
operating
earnings*
Weather
* See page 33 for Items excluded from Income from Continuing Operations to reconcile to Operating Earnings.
O&M 0.01
Taxes & Misc.
0.01
D&A (0.01)
Margins:
Electric 0.03
Transmission 0.01

24
PSE&G –
Monthly Weather Data
1,333
3,954
208
376
586
1,412
140
749
2,999
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
April
May
June
2010
2009
Normal
2010 vs. 2009 vs. Normal
PSE&G Monthly Temperature Humidity Index (THI)
+ 131% Q2 2010 vs. Q2 2009
+ 41% Q2 2010 vs. Normal

25
PSE&G –
Q2 Operating Highlights
NJ BPU approved stipulated settlement in June providing for $100
million in electric
and gas revenue based on authorized ROE of 10.3% and Equity Ratio of 51.2%
Refunding $122 million to resolve issues related to the Market Transition Charge
over the next 24 months
BPU plans to hold separate hearings on rate treatment of consolidated taxes and SBC
Susquehanna-Roseland Transmission in-service date delayed by 2 years
PSE&G has reduced its distribution related capital budgets by $140 million over
2010-2012
PSE&G distribution operations earned an 8.3% return on equity for the trailing
12 months
Operations
Regulatory and Market
Environment
Financial
Economic indicators appear to have stabilized but have yet to indicate a recovery
Focused on maintaining reliability

PSEG Energy Holdings
2010 Q2 Review
*
*
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*

27
PSEG Energy Holdings –
Q2 2010 Earnings Summary
($0.02)
$ 0.04
$ 0.02
EPS from Operating Earnings*
($ 9)
$ 21
$12
Income from Continuing Operations /
Net Income
($ 75)
$ 95
$ 20
Operating Revenues
Variance
Q2 2009
Q2 2010
$ millions (except EPS)
* See page 33 for Items excluded from Income from Continuing Operations to reconcile to Operating Earnings.

28
$0.02
(0.02)
$0.04
0.00
0.01
0.02
0.03
0.04
PSEG
Energy
Holdings
EPS
Reconciliation
–
Q2
2010
versus
Q2 2009
Q2 2010       
operating
earnings*
Q2 2009      
operating
earnings*
Lower gains on lease
sales and lower
project earnings
(0.05)
Tax Benefits for Solar
& Other Projects
0.02
Interest  0.01
* See page 33 for Items excluded from Income from Continuing Operations to reconcile to Operating Earnings.

29
PSEG Energy Holdings –
Q2 Operating Highlights
Financial
Termination of additional lease in Q2 reduced potential tax liability at
quarter-end to $550 million; $320 million of cash on deposit at IRS
Solar projects in Ohio and Florida exceeding expectations; NJ solar
project is operating as planned
Reviewing opportunity for additional investments in solar under PPA
arrangements

PSEG
*
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*
*
*
*
*
*
*
*

31
2010 Operating Earnings Guidance
$ 3.12
$ 1,579
$ 10
$ 43
$ 321
$ 1,205
2009A*
$ 3.00 –
$ 3.25
$ 1,520 –
$ 1,645
$ 5 –
$15
$ 30 –
$ 40
$ 425 –
$ 455
$ 1,060 –
$ 1,135
2010E
Enterprise
Earnings per Share
Operating Earnings*
PSEG Energy Holdings
PSE&G
PSEG Power
$ millions (except EPS)
* See page 35 for Items excluded from Income from Continuing Operations to reconcile to Operating Earnings.

32
PSEG Liquidity as of June 30, 2010
PSEG Liquidity as of June 30, 2010
Expiration
Total
Available
Company
Facility
Date
Facility
Usage
Liquidity
5-Year Credit Facility (Power)
Dec-12
$1,600
1
$231
$1,369
5-Year Credit Facility (PSEG)
Dec-12
$1,000
2
$182
$818
2-Year Credit Facility (Power)
Jul-11
$350
$0
$350
PSE&G
5-Year Credit Facility
Jun-12
$600
3
$214
$386
Total
$3,550
$2,923
1
Power Facility reduces by $75 million in 12/2011
2
PSEG Facility reduces by $47 million in 12/2011
3
PSE&G Facility reduces by $28 million in 6/2011
PSEG /
Power
($Millions)

33
Items Excluded from Income from Continuing Operations to
Reconcile to Operating Earnings
Please see Page 2 for an explanation of PSEG’s use of Operating Earnings as a non-GAAP financial measure and how
it differs from Net Income.
Pro-forma Adjustments, net of tax
2010
2009
Earnings Impact ($ Millions)
Gain (Loss) on Nuclear Decommissioning Trust (NDT) Fund Related
10
$        
17
$        
      Activity (PSEG Power)
Gain (Loss) on Mark-to-Market (MTM) (PSEG Power)
(45)
         
(24)
         
Market Transition Charge Refund (PSE&G)
(72)
-
Total Pro-forma adjustments
(107)
$     
(7)
$         
Fully Diluted Average Shares Outstanding (in Millions)
507
        
507
        
Per Share Impact (Diluted)
Gain (Loss) on NDT Fund Related Activity (PSEG Power)
0.02
$     
0.03
$     
Gain (Loss) on MTM (PSEG Power)
(0.09)
      
(0.05)
      
Market Transition Charge Refund (PSE&G)
(0.14)
      
-
Total Pro-forma adjustments
(0.21)
$    
(0.02)
$    
(a) Income from Continuing Operations for the three months ended June 30, 2010 and 2009 is equal to Net Income.
For the Three Months Ended
30-Jun

34
Items Excluded from Income from Continuing Operations to
Reconcile to Operating Earnings
Please see Page 2 for an explanation of PSEG’s use of Operating Earnings as a non-GAAP financial measure and how
it differs from Net Income.
Pro-forma Adjustments, net of tax
2010
2009
Earnings Impact ($ Millions)
Gain (Loss) on Nuclear Decommissioning Trust (NDT) Fund Related
20
$        
(6)
$         
     Activity (PSEG Power)
Gain (Loss) on Mark-to-Market (MTM) (PSEG Power)
11
          
(39)
         
Market Transition Charge Refund (PSE&G)
(72)
-
Total Pro-forma adjustments
(41)
$       
(45)
$       
Fully Diluted Average Shares Outstanding (in Millions)
507
        
507
        
Per Share Impact (Diluted)
Gain (Loss) on NDT Fund Related Activity (PSEG Power)
0.04
$     
(0.01)
$    
Gain (Loss) on MTM (PSEG Power)
0.02
       
(0.08)
      
Market Transition Charge Refund (PSE&G)
(0.14)
      
-
Total Pro-forma adjustments
(0.08)
$    
(0.09)
$    
(a) Income from Continuing Operations for the six months ended June 30, 2010 and 2009 is equal to Net Income.
For the Six Months Ended
30-Jun

35
Items Excluded from Income from Continuing Operations to
Reconcile to Operating Earnings
Please see Page 2 for an explanation of PSEG’s use of Operating Earnings as a non-GAAP financial measure and how
it differs from Net Income.
Pro-forma Adjustments, net of tax
2009
2008
Earnings Impact ($ Millions)
Gain (Loss) on Nuclear Decommissioning Trust (NDT) Fund
Related Activity (PSEG Power)
9
$         
(71)
$                
Gain (Loss) on Mark-to-Market (MTM) (PSEG Power)
(25)
16
Lease Transaction Reserves
-
(490)
Net Reversal of Lease Transaction Reserves
29
-
Asset Impairments
-
(13)
Premium on Bond Redemption
-
(1)
Total Pro-forma adjustments
13
$       
(559)
$             
Fully Diluted Average Shares Outstanding (in Millions)
507
508
Per Share Impact (Diluted)
Gain (Loss) on Nuclear Decommissioning Trust (NDT) Fund
Related Activity (PSEG Power)
0.02
$    
(0.14)
$            
Gain (Loss) on Mark-to-Market (MTM) (PSEG Power)
(0.05)
0.03
Lease Transaction Reserves
-
(0.96)
Net Reversal of Lease Transaction Reserves
0.05
-
Asset Impairments
-
(0.03)
Premium on Bond Redemption
-
-
Total Pro-forma adjustments
0.02
$    
(1.10)
$            
For the Twelve Months Ended
December 31,