 Forward Looking Statement
3
EXHIBIT 99
•
any
deterioration
in
our
credit
quality
or
the
credit
quality
of
our
counterparties,
including
in
our
leveraged
leases,
•
changes
in
the
cost
of,
or
interruption
in
the
supply
of,
fuel
and
other
commodities
necessary
to
the
operation
of
our
generating
units,
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, •
availability
of
capital
and
credit
at
commercially
reasonable
terms
and
conditions
and
our
ability
to
meet
cash
needs,
•
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. |
 GAAP Disclaimer
PSEG presents Operating Earnings in addition to its Income from Continuing
Operations/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.
4 |
 2013 Operating Earnings Guidance
$2.74
$2.44
$2.25 -
$2.50 E
2011 Operating Earnings*
2012 Operating Earnings*
2013 Guidance
* SEE PAGE A FOR ITEMS EXCLUDED FROM INCOME FROM CONTINUING
OPERATIONS/NET INCOME TO RECONCILE TO OPERATING
EARNINGS. E = ESTIMATE.
9 |
 2013 Operating Earnings
*
*SEE PAGE A FOR ITEMS EXCLUDED FROM INCOME FROM CONTINUING OPERATIONS/NET
INCOME TO RECONCILE TO OPERATING EARNINGS; ALL PERIODS REFLECT TEXAS IN
DISCONTINUED OPERATIONS. E=ESTIMATE.
Investment in the
regulated business
has changed the
earnings mix
Our 2009-2013
investment focus has
brought us to a 50/50
mix for 2013
PSE&G’s 2013-2017
Energy Strong Program
and ongoing transmission
investments will support
continued growth in
PSE&G’s earnings
Percent of Operating Earnings Contribution by Subsidiary
PSE&G
Power
Other
$2.74
$2.44
$2.25 -$2.50E
$3.09
$3.12
10
76%
69%
61%
52%
47%
20%
27%
38%
43%
50%
2009
2010
2011
2012
2013E |
 PSEG Focus
Operational excellence and disciplined investment helped offset the
earnings impact of lower energy prices
2008
2012
PSEG Focus
($ millions, except as noted)
$69.85
PJM West RTC ($/MWh)
$33.88
•
2.4% (planned¹)
•
$866
•
$0
•
$0
•
1.6%
•
29.3TWh
•
$0
$2.91
•
0.8% (actual²)
•
$2,500
•
$955
•
$888
•
1.7%
•
29.8TWh
•
$240
$2.44
•
O&M Growth per year
•
Transmission Rate Base
•
Utility Cap Stimulus Spending
•
Utility Solar & EE Cap Exp
•
EFORd Rate
CCGT
•
Nuclear Generation
•
Holdings Solar Investment
Operating Earnings Per Share
SEE PAGE A FOR ITEMS EXCLUDED FROM INCOME FROM CONTINUING OPERATIONS/NET INCOME
TO RECONCILE TO OPERATING EARNINGS. (1) PLANNED COMPOUND ANNUAL GROWTH
RATE 2008-2012. (2) ACTUAL COMPOUND ANNUAL GROWTH RATE
2008-2012. (3) 2013 INDICATED ANNUAL DIVIDEND RATE IS $1.44 PER SHARE.
$1.29
$1.42
11
Common Dividend Per Share ³ |
 PSE&G’s Energy Strong Capital Program
addresses new reality
New ten-year, $3.9 Billion Infrastructure Program filed with the NJBPU to
strengthen PSE&G’s distribution system focusing on hardening
and resiliency Plan to invest an additional $1.5 Billion in transmission
grid over the ten-year period Energy Strong proposal includes:
Protecting 40 utility installations from severe storms ($1.7 Billion) Making the
electric grid smarter and easier to repair ($454 Million)
Adding backup distribution lines and system redundancies ($415 Million)
Undergrounding 20 miles of overhead distribution lines ($60 Million) Modernizing
the gas distribution system ($1.1 Billion)
Better
protection
for
homes
and
businesses
during
severe
weather
and
improved day to day system reliability
Proposed filing creates ~5,800 jobs and stimulates economic activity for
New Jersey businesses
15 |
 34 Local NJ towns and 3 counties
support
•
34 local NJ governments, and the counties of Hudson,
Passaic and Somerset, have approved resolutions in support
of Energy Strong, PSE&G’s infrastructure proposal to improve
and fortify its electric and gas distribution systems
•
The Energy Strong proposal is currently being evaluated by
the NJ Board of Public Utilities
16 |
 PSE&G’s 2013 operating earnings
is benefiting from transmission growth and
cost containment initiatives
E= ESTIMATE
*SEE SLIDE A FOR ITEMS EXCLUDED FROM INCOME FROM CONTINUING
OPERATIONS/NET INCOME TO RECONCILE TO OPERATING EARNINGS.
48
PSE&G Operating Earnings*
($ Millions)
$580 -
$635E
$528
2012
2013 Guidance |
 Maintaining 2013 operating earnings guidance
PSEG Operating Earnings
$ Millions (except EPS)
2013E
PSEG Power
$535 -
$600
PSE&G
$580 -
$635
PSEG Energy Holdings/Parent
$25 -
$35
Operating Earnings*
$1,140 -
$1,270
2013 Earnings Guidance
$2.25
-
$2.50
E = ESTIMATE
*SEE SLIDE A FOR ITEMS EXCLUDED FROM INCOME FROM CONTINUING
OPERATIONS/NET INCOME TO RECONCILE TO OPERATING EARNINGS.
90 |
 PSEG Summary
•
Maintaining
2013
operating
earnings
guidance
of
$2.25
-
$2.50
per share, with earnings mix shifting to ~50% regulated
•
Double digit operating earnings growth at PSE&G starting in 2013,
and continuing through 2015 driven by transmission investments
and approved programs
•
Power’s continued focus on operational excellence, market expertise
and financial strength reduces risk in low price environment
•
Strong Balance Sheet and Cash Flow support full capital program
without the need for equity
•
Long history of returning cash to the shareholder through the
common dividend, with opportunity for further growth
103 |
 Items Excluded from Income from Continuing
Operations/Net Income to Reconcile to Operating Earnings
Three Months Ended
March 31,
2013
2012
2012
2011
2010
2009
2008
Earnings Impact ($ Millions)
Gain (Loss) on Nuclear Decommissioning Trust (NDT)
Fund Related Activity (PSEG Power)
9
$
5
$
52
$
50
$
46
$
9
$
(71)
$
Gain (Loss) on Mark-to-Market (MTM) (PSEG Power)
(105)
52
(10)
107
(1)
(11)
14
Lease Transaction Activity (Energy Holdings)
-
4
36
(173)
-
29
(490)
Storm O&M (PSEG Power)
(17)
-
(39)
-
-
-
-
Market Transition Charge Refund (PSE&G)
-
-
-
-
(72)
-
-
Gain (Loss) on Asset Sales and Impairments (Energy Holdings)
-
-
-
34
-
-
(13)
Total Pro-forma adjustments
(113)
$
61
$
39
$
18
$
(27)
$
27
$
(560)
$
Fully Diluted Average Shares Outstanding (in Millions)
507
507
507
507
507
507
508
Per Share Impact (Diluted)
Gain (Loss) on NDT Fund Related Activity (PSEG Power)
0.02
$
0.01
$
0.10
$
0.10
$
0.09
$
0.02
$
(0.14)
$
Gain (Loss) on MTM (PSEG Power)
(0.21)
0.10
(0.02)
0.21
-
(0.02)
0.03
Lease Transaction Activity (Energy Holdings)
-
0.01
0.07
(0.34)
-
0.05
(0.96)
Storm O&M (PSEG Power)
(0.03)
-
(0.08)
-
-
-
-
Market Transition Charge Refund (PSE&G)
-
-
-
-
(0.14)
-
-
Gain (Loss) on Asset Sales and Impairments (Energy Holdings)
-
-
-
0.06
-
-
(0.03)
Total Pro-forma adjustments
(0.22)
$
0.12
$
0.07
$
0.03
$
(0.05)
$
0.05
$
(1.10)
$
For the Year Ended
December 31,
Reconciling Items Excluded from Continuing Operations/Net Income to Compute
Operating Earnings (Unaudited)
Pro-forma Adjustments, net of tax
A
PLEASE SEE PAGE 4 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.
|