EX-99.1 3 d531425dex991.htm EX-99.1 EX-99.1
Public Service Enterprise Group
PSEG Earnings Conference Call
1   Quarter 2013
April 30, 2013
EXHIBIT 99.1
st

1
Forward-Looking Statement
Certain of the matters discussed in this report constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995.
Such forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ materially from those anticipated. Such statements
are based on management’s beliefs as well as assumptions made by and information currently available to management. When used herein, the words “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. Factors that may cause actual results to differ are often presented with the forward-looking statements themselves.
Other factors that could cause actual results to differ materially from those contemplated in any forward-looking statements made by us herein are discussed in
Item 1. Financial Statements—Note 8. Commitments and Contingent Liabilities, Item 2. Management’s Discussion and Analysis of Financial Condition and Results
of Operations, and other factors discussed in filings we make with the United States Securities and Exchange Commission (SEC). These factors include, but are 
not limited to:
• adverse changes in the demand for or the price of the capacity and energy that we sell into wholesale electricity markets,
• adverse changes in energy industry law, policies and regulation, including market structures and a potential shift away from competitive markets toward 
  subsidized market mechanisms, transmission planning and cost allocation rules, including rules regarding how transmission is planned and who is permitted to 
  build transmission in the future, 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 our operations,
• changes in nuclear regulation and/or general developments in the nuclear power industry, including various impacts from any accidents or incidents experienced 
  at our facilities or by others in the industry, 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 risks,
• any deterioration in our credit quality or the credit quality of our counterparties, including in our leveraged leases,
• availability of capital and credit at commercially reasonable terms and conditions and our ability to meet cash needs,
• 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,
• any inability to achieve, or continue to sustain, our expected levels of operating performance,
• any equipment failures, accidents, severe weather events or other incidents that impact our ability to provide safe and reliable service to our customers, 
  and any inability to sufficiently obtain coverage or recover proceeds of insurance on such matters,
• increase in competition in energy supply markets as well as competition for certain rate-based transmission projects,
• any inability to realize anticipated tax benefits or retain tax credits,
• challenges associated with recruitment and/or retention of a qualified workforce,
• adverse performance of our decommissioning and defined benefit plan trust fund investments and changes in funding requirements, and
• changes in technology and customer usage patterns.
All of the forward-looking statements made in this report are qualified by these cautionary statements and we cannot assure you that the results or developments
anticipated by management will be realized or even if realized, will have the expected consequences to, or effects on, us or our business prospects, financial
condition or results of operations. Readers are cautioned not to place undue reliance on these forward-looking statements in making any investment decision.
Forward-looking statements made in this report apply only as of the date of this report. While we may elect to update forward-looking statements from time to time,
we specifically disclaim any obligation to do so, even if internal estimates change, unless otherwise required by applicable securities laws.  The forward-looking
statements contained in this report are intended to qualify for the safe harbor provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E
of the Securities Exchange Act of 1934, as amended.

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 slide in this presentation includes
a list of items excluded from Income from Continuing Operations/Net
Income to reconcile to Operating Earnings, with a reference to that slide
included on each of the slides where the non-GAAP information appears.

PSEG
2013 Q1 Review
Ralph Izzo
Chairman, President and Chief Executive Officer

4
Q1 Earnings Summary
$ millions (except EPS)
2013
2012
Operating Earnings
$  433
$  432
Reconciling Items, Net of Tax
(113)
61
Income from Continuing Operations/Net Income
$  320
$  493
EPS from Operating Earnings*   
$  0.85 
$  0.85
Quarter ended March 31          
* See Slide A for Items excluded from Income from Continuing Operations/Net Income to reconcile to Operating Earnings.

5
PSEG –
Q1 2013 Highlights
Strong Earnings
Operating earnings of $0.85 vs. $0.85 per share in Q1 2012 
Power benefited from higher pricing and increased output
Increased contribution to earnings from PSE&G’s investment in transmission
Operational Excellence
PSEG
Power
output
up
7.7%
in
quarter;
nuclear
capacity
factor
at
101%
Diversity and location of Power’s fleet provided flexibility to participate in market
PSE&G’s O&M on track to meet full-year expectations
PSEG Disciplined Capital Investment
BPU
decision
pending
on
Solar
4
All
extension
and
Solar
Loan
III
agreement
33 local NJ governments have approved resolutions in support of PSE&G’s
Energy Strong proposal to fortify its electric and gas distribution systems 
Credit ratings upgraded by Standard & Poor’s for PSEG, PSE&G and Power
Increased
common
dividend
to
indicative
annual
rate
of
$1.44
per
share
in
Q1

6
$2.25 -
$2.50E
PSEG –
Maintaining 2013 Guidance
$2.74
* See Slide A for Items excluded from Income from Continuing Operations/Net Income to reconcile to Operating Earnings.  E = Estimate.                                
$2.44
2011 Operating Earnings*
2012 Operating Earnings*
2013 Operating Earnings Guidance

PSEG
2013 Q1 Operating Company Review
Caroline Dorsa
EVP and Chief Financial Officer

8
Q1 Operating Earnings by Subsidiary
Operating Earnings
Earnings per Share
$ millions (except EPS)
2013
2012
2013
2012
PSEG Power
$  250
$  196
$  0.49
$  0.39
PSE&G
179
197
0.35
0.39
PSEG Energy Holdings/    
Enterprise
4
39
0.01
0.07
Operating Earnings*      
$  433 
$  432
$  0.85
$  0.85
Quarter ended March 31
* See Slide A for Items excluded from Income from Continuing Operations/Net Income to reconcile to Operating Earnings.

9
$0.85
.10
$0.85
(.04)
(.06)
PSEG EPS Reconciliation –
Q1 2013 versus Q1 2012
Q1 2013       
Operating
Earnings*
Q1 2012       
Operating
Earnings*
PSEG Power
PSE&G
PSEG Energy
Holdings/
Enterprise
* See Slide A for Items excluded from Income from Continuing Operations/Net Income to reconcile to Operating Earnings.
Capacity .05
Net Price .02
Volume  .02
Gas Send-Out and
Fixed Cost
Recovery .04
O&M and
Other (.02)
D&A (.01)
Transmission
Net Earnings .03
Weather .02
Distribution
O&M (.02)
D&A and
Other (.01)
Absence of
Tax Settlement (.06)
Absence of
Tax Settlement (.07)
Other .01
0.00
0.20
0.40
0.60
0.80
1.00

PSEG Power
2013 Q1 Review

11
PSEG Power –
Q1 2013 EPS Summary
$ millions (except EPS)
Q1 2013
Q1 2012
Variance
Operating Revenues
$  1,447
$  1,561
$  (114) 
Operating Earnings
$  250
$  196
$  54
Pro Forma Adjustments,
Net of Tax**
(113)
57
(170)
Income from Continuing Operations/
Net Income
$  137
$  253
$  (116)
EPS from Operating Earnings*   
$  0.49
$  0.39
$  0.10 
* See Slide A for Items excluded from Income from Continuing Operations/Net Income to reconcile to Operating Earnings.
**Includes the financial impact from Mark-to-Market positions with forward delivery months.

12
$0.39
.13
$0.49
(.03)
0.00
0.10
0.20
0.30
0.40
0.50
Capacity .05
Net Price .02
Volume .02
Gas Send-Out
and Fixed Cost
Recovery  .04
PSEG Power EPS Reconciliation –
Q1 2013 versus Q1 2012
Q1 2013       
Operating
Earnings*
Q1 2012       
Operating
Earnings*
O&M and Other
(.02)
D&A (.01)
* See Slide A for Items excluded from Income from Continuing Operations/Net Income to reconcile to Operating Earnings.

13
PSEG Power –
Generation Measures
Quarter ended March 31
Total Nuclear
Total Coal*
Oil & Natural Gas
Generation by Fuel (GWh)
14,030
13,143
Quarter ended March 31
* Includes figures for Pumped Storage.  Also includes natural gas fuel switching intervals during 2012 and 2013.
2011
2012
2013
Combined
Cycle
PJM and NY
53%
56%
52%
Coal*
NJ (Coal/Gas)
29%
2%
19%
PA
83%
63%
85%
CT
24%
2%
36%
Nuclear
99%
98%
101%
14,157
Fleet Capacity Factors (%)
57%
of
Output
27%
of
Output
15,000
7,500
0
2011
2012
2013
7,928
7,970
8,137
2,312
1,130
2,207
3,813
4,043
3,790

14
PSEG Power –
Fuel Costs
Quarter ended March 31
($ millions)
2011
2012
2013
Coal
$90
$39
$66
Oil & Gas
191
128
178
Total Fossil
281
167
244
Nuclear
46
50
58
Total Fuel
Cost
$327
$217
$302
Total
Generation
(GWh)
14,030
13,143
14,157
$ / MWh
23.31
16.51
21.33
PSEG Power –
Fuel Costs

15
PSEG Power –
Gross Margin Performance
$55
$46
Quarter ended March  31
Q1 2013 Regional Performance
Region
Gross
Margin ($M)
2013 Performance
PJM
$638
Higher market pricing and higher
volumes offset lower pricing from roll
off of higher priced hedges.  Higher
capacity pricing versus a year ago.
New
England
$20
Higher volume and higher pricing.
New York
$15
Higher pricing.
PSEG Power Gross Margin ($/MWh)
$48
Return to normal weather and higher spot power and gas prices offset declines in average hedge price
Q1 spot prices higher across PJM, ISO-NE, and NYISO
Capacity prices higher year-over-year
Market support for dispatch of NJ coal units on coal
Continued strong portfolio output enables Power to participate in market opportunities
$75
$50
$25
$0
2011
2012
2013

16
Hedging Update…
Contracted Energy*
* Hedge
percentages
and
prices
as
of
March
28,
2013.
Revenues
of
full
requirement
load
deals
based
on
contract
price,
including
renewable
energy
credits,
ancillary,
and
transmission
components
but
excluding
capacity.
Hedges
include
positions
with
MTM accounting
treatment
and
options.
Apr-Dec
2013
2014
2015
Base Load
(Nuclear and Base Load Coal)
Intermediate Coal, Combined
Cycle, Peaking
Total
Volume TWh
% Hedged
Price $/MWh
Volume TWh
% Hedged
Price $/MWh
Volume TWh
% Hedged
Price $/MWh
26
35
35
100%
80-85%
40-45%
$50
$50
$50
15
19
18
30-35%
0%
0%
$50
$50
$50
40-42
53-55
52-54
70-75%
50-55%
25-30%
$50
$50
$50

17
PSEG Power –
Q1 2013 Operating Highlights
Operations
Financial
Regulatory and Market
Environment
S&P upgraded Power’s senior unsecured debt rating from BBB to BBB+ (Outlook Stable)
Superstorm Sandy cost estimates:  $28 million O&M in Q1; $113 million storm-to-date;
$300 million in total over two-year period (excluding insurance recoveries)
Power’s total debt as a percentage of capital at March 31 was 30%
Improved spot power prices reflected normal winter weather and higher natural gas prices;
basis in the quarter improved from Q1 2012 lows
MOPR settlement decision pending at FERC
Decision in Federal Court on NJ LCAPP case expected after May RPM
2013 anticipated base load output hedged at an average price of $50/MWh
Q1 output up 7.7% on strong portfolio production; nuclear capacity factor at 101%
Salem station posted record generation
Equipment and design upgrades contributed to excellent nuclear performance
Output of NJ coal units was 54% coal, 46% gas fueled

PSE&G
2013 Q1 Review

19
PSE&G –
Q1 Earnings Summary
$ millions (except EPS)
Q1 2013
Q1 2012
Variance
Operating Revenues
$  1,995
$  1,939
$  56
Operating Expenses
967
1,002
(35)
427
376
51
215
190
25
21
29
(8)
Total Operating Expenses
1,630
1,597
33
Operating Earnings
$  179
$  197
$  (18)
EPS from Operating Earnings*    
$  0.35
$  0.39
$  (0.04)
* See Slide A for Items excluded from Income from Continuing Operations/Net Income to reconcile to Operating Earnings.
Energy Costs
Operation & Maintenance
Depreciation & Amortization
Taxes Other than Income Taxes   

PSE&G EPS Reconciliation –
Q1 2013
versus Q1 2012
20
Q1 2013      
Operating
Earnings*
Q1 2012    
Operating
Earnings*
* See Slide A for Items excluded from Income from Continuing Operations/Net Income to reconcile to Operating Earnings.
Transmission
Net Earnings .03
Weather .02
D&A and
Other (.01)
Absence of Tax
Settlement (.06)
Distribution
O&M
$0.39
.05
$0.35
(.07)
(.02)
0.50
0.40
0.30
0.20
0.10
0.00

21
PSE&G –
Q1 Operating Highlights
Operations
BPU
decision
pending
on
agreement
to
spend
up
to
$247
million
on
Solar
4
All
extension
and up to $199 million on Solar Loan III program
PSE&G pursuing Energy Strong infrastructure proposal with the NJBPU to invest
$3.9 billion over the next ten years on electric and gas system hardening and resiliency
Advancing plans for Transmission hardening program of $1.5 billion over 10 years
NJBPU initiated two generic proceedings with the NJ EDCs on storm response
Construction of major transmission lines progressing on schedule
Regulatory and Market
Environment
S&P
upgraded
PSE&G’s
senior
secured
debt
rating
from
A-
to
A
(Outlook
Stable)
PSE&G earned its authorized return in the quarter
Financial
Q1 weather was significantly colder than a year ago but about normal
Heating degree days 26% above Q1 2012, flat versus normal weather
Residual impacts of Sandy and a still-slow economy continue to weigh on demand
More normal O&M spend in Q1 2013; expect O&M to even out over balance of year

PSEG Energy Holdings/Enterprise
2013 Q1 Review

23
PSEG
Energy
Holdings/Enterprise
–
Q1
2013
Earnings
Summary
$ millions (except EPS)
Q1 2013
Q1 2012
Variance
Operating Earnings
$  4
$  39
$  (35)
Lease Transaction Activity
-
4
(4)
Net Income
$  4
$  43
$  (39)
EPS from Operating Earnings*
$  0.01
$  0.07
$  (0.06)
* See Slide A for Items excluded from Income from Continuing Operations/Net Income to reconcile to Operating Earnings.

24
PSEG Energy Holdings/Enterprise EPS Reconciliation –
Q1 2013 versus Q1 2012
Q1 2013     
Operating
Earnings*
Q1 2012      
Operating
Earnings*
* See Slide A for Items excluded from Income from Continuing Operations/Net Income to reconcile to Operating Earnings.
Absence of  
Tax  
Settlement
(.07)
Other .01
$0.01
(.06)
$0.07
0.10
0.05
0.00

PSEG

26
PSEG Financial Highlights
Maintaining
2013
operating
earnings
guidance
of
$2.25
-
$2.50
per
share
Focused on maintaining operating efficiency and customer reliability
PSE&G expected to grow at double-digit rate in 2013 and provide ~50% of operating earnings
Executing existing $3.4 billion transmission capital spending program
on schedule
PSE&G pursuing Energy Strong, its $3.9 billion, ten-year infrastructure spending
program to strengthen electric and gas distribution, communications, and customer
reliability and resiliency.  In addition, PSE&G plans to invest $1.5 billion during this
time-frame to harden its transmission system
Financial position remains strong
S&P upgraded PSEG’s corporate credit rating from BBB to BBB+ (Outlook Stable)
Positive cash from Power and increasing cash flow from PSE&G supports dividend growth
and funds capital spending program without the need to issue equity
Debt as a percentage of capital was 41% at March 31, 2013
Long history of returning cash to the shareholder through the common dividend,
with opportunity for future growth
Increased
common
dividend
to
indicative
annual
rate
of
$1.44
per
share
in
Q1

27
PSEG 2013 Operating Earnings Guidance -
By Subsidiary
$ millions (except EPS)
2013E
2012A
PSEG Power
$535 –
$600
$644  
PSE&G
$580 –
$635
$528
PSEG Energy
Holdings/Enterprise
$25 –
$35  
$64
Operating Earnings*
$1,140 –
$1,270
$1,236
Earnings per Share
$2.25 –
$2.50
$2.44
* See Slide A for Items excluded from Income from Continuing Operations/Net Income to reconcile to Operating Earnings.
E = Estimate     A = Actual   

28
PSEG Liquidity as of March 31, 2013
PSE&G
5-year Credit Facility
Mar-18
$600
$178
$422
5-Year Credit Facility (Power)
Mar-17
1,600
60
1,540
5-Year Credit Facility (Power)
Mar-18
1,000
0
1,000
5-Year Bilateral (Power)
Sep-15
100
100
0
5-year Credit Facility (PSEG)
Mar-17
500
4
496
5-year Credit Facility (PSEG)
Mar-18
500
0
500
Total
$4,300
$342
$3,958
$289
$0
$4,247
$3,825
PSEG /
Power
Expiration
Total
Available
Company
Facility
Date
Facility
Usage
Liquidity
($Millions)
Total Liquidity Available
PSEG Money Pool ST Investment
PSE&G ST Investment
Total Parent / Power Liquidity

A
Items Excluded from Income from Continuing Operations/
Net Income to Reconcile to Operating Earnings
Please see Slide 2 for an explanation of PSEG’s use of Operating Earnings as a non-GAAP financial measure
and how it differs from Income from Continuing Operations/Net Income.
2013
2012
2012
2011
Gain
(Loss)
on
Nuclear
Decommissioning
Trust
(NDT)
Fund
Related
Activity
(PSEG
Power)
9
$           
5
$         
52
$         
50
$       
(105)
52
(10)
107
Lease
Related
Activity
(PSEG
Energy
Holdings)
-
4
36
(173)
Storm
O&M
(PSEG
Power)
(17)
-
(39)
-
Gain
on
Sale
of
Qwest
Building
(PSEG
Energy
Holdings)
-
-
-
34
Total
Pro-forma
adjustments
(113)
$      
61
$       
39
$         
18
$       
Fully
Diluted
Average
Shares
Outstanding
(in
Millions)
507
507
507
507
Gain
(Loss)
on
NDT
Fund
Related
Activity
(PSEG
Power)
0.02
$       
0.01
$    
0.10
$      
0.10
$    
(0.21)
0.10
(0.02)
0.21
Lease
Related
Activity
(PSEG
Energy
Holdings)
-
0.01
0.07
(0.34)
Storm
O&M
(PSEG
Power)
(0.03)
-
(0.08)
-
Gain
on
Sale
of
Qwest
Building
(PSEG
Energy
Holdings)
-
-
-
0.06
Total
Pro-forma
adjustments
(0.22)
$     
0.12
$    
0.07
$      
0.03
$    
Three Months Ended
Year Ended
December 31,
March 31,
Pro-forma Adjustments, net of tax
Gain
(Loss)
on
MTM
(PSEG
Power)
Gain
(Loss)
on
Mark-to-Market
(MTM)
(PSEG
Power)
PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED
Reconciling Items Excluded from Income from Continuing Operations/Net Income to Compute Operating Earnings
(Unaudited)
Per
Share
Impact
(Diluted)
Earnings
Impact
($
Millions)
(a)
(a)