8-K

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) October 30, 2013

PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED

(Exact name of registrant as specified in its charter)

New Jersey	001-09120	22-2625848
(State or other jurisdiction of incorporation)	(Commission File Number)	(I.R.S. Employer 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	001-34232	22-3663480
(State or other jurisdiction of incorporation)	(Commission File Number)	(I.R.S. Employer 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 jurisdiction of incorporation)	(Commission File Number)	(I.R.S. Employer 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

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

The information contained in Item 2.02. Results of Operations and Financial Condition in this Form 8-K is furnished solely for Public Service Enterprise Group Incorporated (PSEG). The information contained in Item 7.01 Regulation FD Disclosure in this combined Form 8-K is separately furnished, as noted, by PSEG, PSEG Power LLC (Power) and Public Service Electric and Gas Company (PSE&G). 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. Power and PSE&G each makes representations only as to itself and makes no other representations whatsoever as to any other company.

Item 2.02 Results of Operations and Financial Condition

PSEG

On October 30, 2013, PSEG announced unaudited financial results for the three months and nine months ended September 30, 2013. A copy of the earnings release dated October 30, 2013 is furnished as Exhibit 99 to this Form 8-K.

Item 7.01 Regulation FD Disclosure

PSEG, Power and PSE&G

On October 30, 2013, PSEG conducted an earnings call regarding its 2013 third quarter results. A copy of the slideshow presentation used during the earnings call is furnished as Exhibit 99.1 to this Form 8-K.

Item 9.01 Financial Statements and Exhibits

Exhibit 99	Press Release dated October 30, 2013
Exhibit 99.1	Slideshow Presentation

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/ Derek M. DiRisio
	Derek M. DiRisio
	Vice President and Controller
	(Principal Accounting Officer)

Date: October 30, 2013

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.

PSEG POWER LLC
(Registrant)
By:	/s/ Derek M. DiRisio
	Derek M. DiRisio
	Vice President and Controller
	(Principal Accounting Officer)

Date: October 30, 2013

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.

PUBLIC SERVICE ELECTRIC AND GAS COMPANY
(Registrant)
By:	/s/ Derek M. DiRisio
	Derek M. DiRisio
	Vice President and Controller
	(Principal Accounting Officer)

Date: October 30, 2013

5

EX-99

EXHIBIT 99

Investor News NYSE: PEG

For further information, contact:

•   Kathleen A. Lally, Vice President – Investor Relations	Phone: 973-430-6565
•   Carlotta Chan Lane, Manager – Investor Relations	Phone: 973-430-6596

PSEG ANNOUNCES 2013 THIRD QUARTER RESULTS

$0.77 PER SHARE FROM CONTINUING OPERATIONS

Operating Earnings of $0.76 Per Share

Operating Earnings Guidance Increased to $2.40 - $2.55 Per Share

October 30, 2013 (Newark, NJ) (NYSE – PEG) Public Service Enterprise Group (PSEG) today reported third quarter 2013 Income from Continuing Operations and Net Income of $390 million or $0.77 per share as compared to Net Income and Income from Continuing Operations of $347 million or $0.68 per share for the third quarter of 2012. Operating earnings for the third quarter of 2013 were $385 million or $0.76 per share compared to the third quarter of 2012 operating earnings of $382 million or $0.75 per share.

“Our company delivered solid results in the third quarter consistent with our objectives,” said Ralph Izzo, chairman, president and chief executive officer of PSEG. “PSE&G is on track to provide double-digit growth in earnings driven by increased investment in transmission, and PSEG Power’s results benefit from its strong locational advantages. Based on our performance through the third quarter, we are raising our full year operating earnings guidance to $2.40 - $2.55 per share from $2.25 - $2.50 per share.”

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. Operating Earnings exclude the impact of returns/(losses) associated with Nuclear Decommissioning Trust (NDT), certain Mark-to-Market (MTM) accounting and other material one-time items. The table below provides a reconciliation of PSEG’s Net Income to Operating Earnings (a non-GAAP measure) for the third quarter. See Attachment 12 for a complete list of items excluded from Income from Continuing Operations in the determination of Operating Earnings.

PSEG CONSOLIDATED EARNINGS (unaudited)

Third Quarter Comparative Results

2013 and 2012

	Income					Diluted Earnings
	($ millions)					Per Share
	2013		2012			2013		2012
Operating Earnings	$	385	$	382		$	0.76	$	0.75
Reconciling Items		5		(35	)		0.01		(0.07	)
Income from Continuing Operations*	$	390	$	347		$	0.77	$	0.68
Average Shares							508M		507M

* Income from Continuing Operations is equal to Net Income in both years.

Mr. Izzo went on to say, “A year ago, we were responding to the devastation to our system caused by Superstorm Sandy. It’s only due to the tireless efforts of a dedicated work-force that we are on track to meet our near and long-term targets for capital investment and can raise our full year guidance for operating earnings. The ability of our workforce to meet customer needs has been recognized with an enhancement to our original contract to operate the Long Island Power Authority’s transmission and distribution system. We remain focused on securing approval for PSE&G’s ‘Energy Strong’ proposal, and are well positioned to meet the needs of our customers and perform for our shareholders.”

Our revised Operating Earnings guidance by company for the full year is as follows:

Operating Earnings

($ millions, except EPS)

	2013E		2012A
PSEG Power	$	630 - $      685	$	644
PSE&G	$	585 - $      600	$	528
PSEG Energy Holdings/
Parent	$	0 - $        10	$	64
Total	$	1,215 - $   1,295	$	1,236
Earnings Per Share	$	2.40 - $     2.55	$	2.44

Operating Earnings Review and Outlook by Operating Subsidiary

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

PSEG Power

PSEG Power reported operating earnings of $216 million ($0.43 per share) for the third quarter of 2013 compared with operating earnings of $217 million ($0.43 per share) for the third quarter of 2012.

Power’s third quarter earnings benefited from higher PJM capacity prices, an improvement in the market price of energy and a decline in the supply cost of gas.

An increase in capacity prices improved Power’s quarter-over-quarter earnings by $0.11 per share. Higher overall market prices for natural gas and an improvement in basis in the PS-zone had a favorable influence on spot market prices for energy. In addition, Power’s results benefited from its firm gas transportation contracts which provide it with access to low-cost gas from the Marcellus Basin. The improvement in the wholesale price of energy and decline in fuel cost combined to add $0.04 per share to earnings quarter-over-quarter. The improvement in capacity revenue and wholesale energy margins more than offset the impact on earnings from a reduction in the average price on hedged volumes. The decline in the average price of energy hedges reduced quarter-over-quarter earnings by $0.10 per share. A reduction in generation volumes, as a result of more normal weather and a maintenance related outage, reduced Power’s quarter-over-quarter earnings comparisons by $0.02 per share.

PSEG Power initiated a planned major maintenance program at the Bethlehem Energy Center in the third quarter. The maintenance work, which concluded in October, resulted in an increase in Power’s operating and maintenance (O&M) expense (exclusive of storm-related restoration activity) and reduced quarter-over-quarter earnings comparisons by $0.04 per share.

Power’s output declined by 5.4% in the quarter from year-ago levels. More normal weather conditions and the maintenance outage at Bethlehem combined to reduce output from the fossil fleet by 10% in the quarter. The nuclear fleet operated at an average capacity factor of 91% in the quarter versus 92% in the year-ago quarter resulting in a capacity factor of 93.2% for the nine months ended September 30, 2013.

Power continues to forecast output for 2013 of 53 – 55 TWh. Output for the fourth quarter of approximately 13 – 14 TWh is 70% - 75% hedged at an average price of $50 per MWh. For 2014, forecast output of 53 – 55 TWh is approximately 65% - 70% hedged at an average price of $48 per MWh. Power has hedged approximately 35% - 40% of its forecast generation in 2015 of 52 – 54 TWh at an average price of $48 per MWh. Power’s forecast of total output in each of the next two years remains unchanged from prior guidance. The increase in the percentage of Power’s generation hedged for 2014 – 2015 reflects an upward adjustment to the forecast of BGS related hedges as well as an increase in the percentage of energy hedged through other PJM-West hedges. The hedge data for 2014 now assumes BGS volumes of 11 TWh versus the prior guidance of 10 TWh. Power continues to assume BGS related load and hedges in 2013 will represent approximately 12 TWh of generation for the year.

The forecast range of Power’s operating earnings for 2013 has been increased to $630 - $685 million from $535 - $600 million.

PSE&G

PSE&G reported operating earnings of $168 million ($0.33 per share) for the third quarter of 2013 compared with operating earnings of $155 million ($0.30 per share) for the third quarter of 2012.

PSE&G’s third quarter earnings reflect increased revenue associated with a greater level of investment.

An increase in PSE&G’s transmission revenue, effective on January 1, 2013, increased quarter-over-quarter earnings by $0.04 per share. Revenue from investments made under PSE&G’s distribution capital infrastructure investment program contributed $0.01 per share to earnings in the third quarter.

Electric demand in the third quarter was influenced by weather which was hotter than normal, but cooler than the weather conditions experienced in the year-ago period. Also, demand for electricity continues to be impacted by customer conservation in a slowly improving economic environment. Weather normalized sales – led by a decline in the residential sector – are estimated to have declined by 2.3% in the third quarter. Sales of gas, although not as important in the third quarter as demand for electricity, increased 10.4% from year-ago levels reflective of customer adjustment of use to a lower cost of gas.

The net impact on earnings from weather and the change in sales was a reduction in quarter-over-quarter earnings of $0.02 per share. A slight increase in distribution related O&M and depreciation expense was offset by a decline in interest expense and other items.

PSE&G announced on October 23 that it would be providing a two-month bill credit for its residential gas customers that will reduce the typical monthly bill by approximately 33% in both November and December. The credit is driven by our access to low-cost shale gas supply.

PSE&G is investing $3.4 billion in transmission related programs over the period 2013 – 2015. This program, which includes five major transmission lines, remains on time and on budget. All five transmission projects are expected to be operational during 2014 – 2015. PSE&G filed its annual update of revenue requirements associated with its transmission investment program with the Federal Energy Regulatory Commission (FERC) in mid-October. If accepted, transmission revenue in 2014 would increase by $176 million at the start of the New Year.

The forecast of PSE&G’s operating earnings for 2013 has been adjusted to $585 million - $600 million from $580 - $635 million.

PSEG Energy Holdings/Enterprise

PSEG Energy Holdings/Enterprise reported operating earnings of $1 million for the third quarter of 2013 versus operating earnings of $10 million ($0.02 per share) during the third quarter of 2012. Results for the quarter reflect the continued monetization of assets within Holdings’ portfolio and the absence of gains on an asset sale in the year-ago quarter.

NRG Energy recently announced that it has entered into an agreement to acquire Edison Mission Energy (EME) as part of an EME Chapter 11 plan of re-organization sponsored by NRG. In connection with the transaction, NRG has agreed to certain financial conditions with the lessors of the Powerton and Joliet facilities (including PSEG Energy Holdings) which would cure all monetary defaults at closing and protect the lessors’ equity value in the leveraged leases.

The forecast of PSEG Energy Holdings/Enterprise full year operating earnings for 2013 has been adjusted to $0 - $10 million from $25 - $35 million. The updated guidance reflects the impact of revised estimates for the legacy Holdings’ portfolio and related taxes (separate from the merchant energy leases) which are expected to more than offset the impact on operating earnings from the commercial operation of Holdings’ sixth solar facility, a 19MW solar facility ($50 million investment) located in Arizona.

PSEG – Long Island

The Board of Directors for the Long Island Power Authority (LIPA) has approved amendments to PSEG – Long Island’s original operating services agreement for LIPA’s transmission and distribution system. The amendments recognize an increase in PSEG – Long Island management responsibility to operate and maintain LIPA’s system, expand the length of the contract by 2 years to 12 years effective January 1, 2014, increase PSEG – Long Island’s compensation effective in 2016 and, in 2015, provide PSEG Power’s Energy Resources and Trade group with the contract to procure LIPA’s fuel requirements. The agreements’ effectiveness is contingent upon LIPA’s receipt of a Private Letter Ruling from the IRS on the continued tax-exempt status of certain LIPA debt securities and LIPA’s approval of the proposed 2014 and 2015 operating and capital pass-through budgets.

FORWARD-LOOKING STATEMENTS

Certain of the matters discussed in this communication about us and our subsidiaries future performance, including, without limitation, future revenues, earnings, strategies, prospects, consequences and all other statements that are not purely historical 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 filings we make with the United States Securities and Exchange Commission (SEC), including our Annual Report on Form 10-K and subsequent reports on Form 10-Q and Form 8-K and available on our website: http://www.pseg.com. 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 obtain sufficient coverage or recover proceeds of insurance on such matters,

• increases in competition in energy supply markets as well as competition from 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, such as distributed generation and microgrids, and resultant changes in customer usage patterns, including energy efficiency and demand response.

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.

Attachment 1

PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED

Operating Earnings and Per Share Results by Subsidiary

(Unaudited)

	Three Months Ended					Nine Months Ended
	September 30,					September 30,
	2013		2012			2013			2012
Earnings Results ($ Millions)
PSEG Power	$	216	$	217		$	580		$	523
PSE&G		168		155			468			453
PSEG Energy Holdings/Enterprise		1		10			13			53
Operating Earnings	$	385	$	382		$	1,061		$	1,029
Reconciling Items(a)		5		(35	)		(18	)		22
Income from Continuing Operations/Net Income	$	390	$	347		$	1,043		$	1,051
Fully Diluted Average Shares Outstanding (in Millions)		508		507			507			507
Per Share Results (Diluted)
PSEG Power	$	0.43	$	0.43		$	1.14		$	1.03
PSE&G		0.33		0.30			0.92			0.89
PSEG Energy Holdings/Enterprise		—		0.02			0.03			0.11
Operating Earnings	$	0.76	$	0.75		$	2.09		$	2.03
Reconciling Items(a)		0.01		(0.07	)		(0.03	)		0.04
Income from Continuing Operations/Net Income	$	0.77	$	0.68		$	2.06		$	2.07

(a) See attachment 12 for details of items excluded from Income from Continuing Operations/Net Income to compute Operating Earnings.

Attachment 2

PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED

Consolidating Statements of Operations

(Unaudited, $ Millions)

	Three Months Ended September 30, 2013
				PSEG
				Energy Holdings/			PSEG
	PSEG			Enterprise (a)			POWER			PSE&G
OPERATING REVENUES	$	2,554		$	(281	)	$	1,169		$	1,666
OPERATING EXPENSES
Energy Costs		801			(290	)		430			661
Operation and Maintenance		713			1			304			408
Depreciation and Amortization		313			11			66			236
Taxes Other Than Income Taxes		15			—			—			15
Total Operating Expenses		1,842			(278	)		800			1,320
OPERATING INCOME		712			(3	)		369			346
Income from Equity Method Investments		4			4			—			—
Other Income and (Deductions)		47			1			34			12
Other-Than-Temporary Impairments		(3	)		—			(3	)		—
Interest Expense		(100	)		1			(26	)		(75	)
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		660			3			374			283
Income Tax Benefit (Expense)		(270	)		(2	)		(153	)		(115	)
INCOME FROM CONTINUING OPERATIONS/NET INCOME	$	390		$	1		$	221		$	168
OPERATING EARNINGS	$	385		$	1		$	216		$	168
Reconciling Items Excluded from Continuing Operations/Net Income (b)		5			—			5			—
INCOME FROM CONTINUING OPERATIONS/NET INCOME	$	390		$	1		$	221		$	168
	Three Months Ended September 30, 2012
				PSEG
				Energy Holdings/			PSEG
	PSEG			Enterprise (a)			POWER			PSE&G
OPERATING REVENUES	$	2,402		$	(319	)	$	1,038		$	1,683
OPERATING EXPENSES
Energy Costs		879			(333	)		456			756
Operation and Maintenance		619			(2	)		255			366
Depreciation and Amortization		286			10			60			216
Taxes Other Than Income Taxes		24			—			—			24
Total Operating Expenses		1,808			(325	)		771			1,362
OPERATING INCOME		594			6			267			321
Income from Equity Method Investments		7			7			—			—
Other Income and (Deductions)		95			1			84			10
Other-Than-Temporary Impairments		(2	)		—			(2	)		—
Interest Expense		(106	)		2			(35	)		(73	)
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		588			16			314			258
Income Tax Benefit (Expense)		(241	)		(5	)		(133	)		(103	)
INCOME FROM CONTINUING OPERATIONS/NET INCOME	$	347		$	11		$	181		$	155
OPERATING EARNINGS	$	382		$	10		$	217		$	155
Reconciling Items Excluded from Continuing Operations/Net Income (b)		(35	)		1			(36	)		—
INCOME FROM CONTINUING OPERATIONS/NET INCOME	$	347		$	11		$	181		$	155

(a) Includes activities at Energy Holdings and the Parent as well as intercompany eliminations.

(b) See attachment 12 for details of items excluded from Income from Continuing Operations/Net Income to compute Operating Earnings.

Attachment 3

PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED

Consolidating Statements of Operations

(Unaudited, $ Millions)

	Nine Months Ended September 30, 2013
	PSEG			PSEG Energy Holdings/ Enterprise (a)			PSEG POWER			PSE&G
OPERATING REVENUES	$	7,650		$	(1,240	)	$	3,806		$	5,084
OPERATING EXPENSES
Energy Costs		2,711			(1,283	)		1,786			2,208
Operation and Maintenance		2,069			(1	)		866			1,204
Depreciation and Amortization		886			33			195			658
Taxes Other Than Income Taxes		50			—			—			50
Total Operating Expenses		5,716			(1,251	)		2,847			4,120
OPERATING INCOME		1,934			11			959			964
Income from Equity Method Investments		9			9			—			—
Other Income and (Deductions)		118			2			78			38
Other-Than-Temporary Impairments		(7	)		—			(7	)		—
Interest Expense		(303	)		5			(85	)		(223	)
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		1,751			27			945			779
Income Tax Benefit (Expense)		(708	)		(14	)		(383	)		(311	)
INCOME FROM CONTINUING OPERATIONS/NET INCOME	$	1,043		$	13		$	562		$	468
OPERATING EARNINGS	$	1,061		$	13		$	580		$	468
Reconciling Items Excluded from Continuing Operations/Net Income (b)		(18	)		—			(18	)		—
INCOME FROM CONTINUING OPERATIONS/NET INCOME	$	1,043		$	13		$	562		$	468
	Nine Months Ended September 30, 2012
	PSEG			PSEG Energy Holdings/ Enterprise (a)			PSEG POWER			PSE&G
OPERATING REVENUES	$	7,375		$	(1,238	)	$	3,584		$	5,029
OPERATING EXPENSES
Energy Costs		2,819			(1,286	)		1,725			2,380
Operation and Maintenance		1,876			4			780			1,092
Depreciation and Amortization		797			28			175			594
Taxes Other Than Income Taxes		73			—			—			73
Total Operating Expenses		5,565			(1,254	)		2,680			4,139
OPERATING INCOME		1,810			16			904			890
Income from Equity Method Investments		9			9			—			—
Other Income and (Deductions)		155			5			119			31
Other-Than-Temporary Impairments		(14	)		—			(14	)		—
Interest Expense		(310	)		7			(97	)		(220	)
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		1,650			37			912			701
Income Tax Benefit (Expense)		(599	)		23			(374	)		(248	)
INCOME FROM CONTINUING OPERATIONS/NET INCOME	$	1,051		$	60		$	538		$	453
OPERATING EARNINGS	$	1,029		$	53		$	523		$	453
Reconciling Items Excluded from Continuing Operations/Net Income (b)		22			7			15			—
INCOME FROM CONTINUING OPERATIONS/NET INCOME	$	1,051		$	60		$	538		$	453

(a) Includes activities at Energy Holdings and the Parent as well as intercompany eliminations.

(b) See attachment 12 for details of items excluded from Income from Continuing Operations/Net Income to compute Operating Earnings.

Attachment 4

PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED

Capitalization Schedule

(Unaudited, $ Millions)

	September 30,			December 31,
	2013			2012
DEBT
Long-Term Debt	$	7,909		$	7,173
Securitization Debt		561			722
Project Level, Non-Recourse Debt		16			44
Total Debt		8,486			7,939
STOCKHOLDERS’ EQUITY
Common Stock		4,852			4,833
Treasury Stock		(615	)		(607	)
Retained Earnings		7,439			6,942
Accumulated Other Comprehensive Loss		(338	)		(388	)
Total Common Stockholders’ Equity		11,338			10,780
Noncontrolling Interests - Equity Investments		1			1
Total Equity		11,339			10,781
Total Capitalization	$	19,825		$	18,720

Attachment 5

PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED

Condensed Consolidated Statements Of Cash Flows

(Unaudited, $ Millions)

	Nine Months Ended September 30,
	2013			2012
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income	$	1,043		$	1,051
Adjustments to Reconcile Net Income to Net Cash Flows From Operating Activities		1,392			1,260
NET CASH PROVIDED BY OPERATING ACTIVITIES		2,435			2,311
NET CASH USED IN INVESTING ACTIVITIES		(2,088	)		(2,051	)
NET CASH USED IN FINANCING ACTIVITIES		(278	)		(314	)
Net Change in Cash and Cash Equivalents		69			(54	)
Cash and Cash Equivalents at Beginning of Period		379			834
Cash and Cash Equivalents at End of Period	$	448		$	780

Attachment 6

PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED

Quarter-over-Quarter EPS Reconciliation

September 30, 2013 vs. September 30, 2012

(Unaudited)

Attachment 7

PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED

Year-over-Year EPS Reconciliation

September 30, 2013 vs. September 30, 2012

(Unaudited)

Attachment 8

PSEG POWER LLC

Generation Measures

(Unaudited)

	GWhr Breakdown						GWhr Breakdown
	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2013			2012			2013			2012
Nuclear - NJ		5,408			5,490			15,635			15,525
Nuclear - PA		2,090			2,069			7,148			7,079
Total Nuclear		7,498			7,559			22,783			22,604
Fossil - Coal/Natural Gas - NJ*		420			694			1,086			1,101
Fossil - Coal - PA		1,413			1,344			4,006			3,477
Fossil - Coal - CT		103			33			434			78
Total Coal		1,936			2,071			5,526			4,656
Fossil - Oil & Natural Gas - NJ		3,691			3,874			9,579			9,711
Fossil - Oil & Natural Gas - NY		952			1,344			3,020			3,719
Fossil - Oil & Natural Gas - CT		34			71			78			79
Total Oil & Natural Gas		4,677			5,289			12,677			13,509
		14,111			14,919			40,986			40,769
	% Generation by Fuel Type						% Generation by Fuel Type
	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2013			2012			2013			2012
Nuclear - NJ		38	%		37	%		38	%		38	%
Nuclear - PA		15	%		14	%		17	%		17	%
Total Nuclear		53	%		51	%		55	%		55	%
Fossil - Coal/Natural Gas - NJ*		3	%		5	%		3	%		3	%
Fossil - Coal - PA		10	%		9	%		10	%		9	%
Fossil - Coal - CT		1	%		0	%		1	%		0	%
Total Coal		14	%		14	%		14	%		12	%
Fossil - Oil & Natural Gas - NJ		26	%		26	%		24	%		24	%
Fossil - Oil & Natural Gas - NY		7	%		9	%		7	%		9	%
Fossil - Oil & Natural Gas - CT		0	%		0	%		0	%		0	%
Total Oil & Natural Gas		33	%		35	%		31	%		33	%
		100	%		100	%		100	%		100	%

* Includes Pumped Storage. Pumped Storage accounted for <1% of total generation for the three and nine months ended September 30, 2013 and 2012. Generation includes natural gas fuel switching intervals.

Attachment 9

PUBLIC SERVICE ELECTRIC & GAS COMPANY

Retail Sales and Revenues

(Unaudited)

September 30, 2013

Electric Sales and Revenues

	Three Months		Change vs.			Nine Months		Change vs.
	Ended		2012			Ended		2012
Sales (millions kwh)
Residential		4,320		-6.9	%		10,527		-1.4	%
Commercial & Industrial		7,604		-2.9	%		20,880		-2.6	%
Street Lighting		73		7.0	%		232		9.0	%
Interdepartmental		3		-2.2	%		7		-1.6	%
Total		12,000		-4.4	%		31,646		-2.2	%
Revenue ($ millions)
Residential	$	677		-4.5	%	$	1,627		-3.2	%
Commercial & Industrial		649		0.6	%		1,595		-4.2	%
Street Lighting		17		-2.8	%		51		-6.4	%
Other Operating Revenues*		109		9.0	%		321		17.0	%
Total	$	1,452		-1.3	%	$	3,594		-2.2	%
	Three Months		Change vs.			Nine Months		Change vs.
	Ended		2012			Ended		2012
Weather Data
THI Hours - Actual		12,355		-8.0	%		17,011		-4.1	%
THI Hours - Normal		11,508					15,472

* Primarily sales of Non-Utility Generator energy to PJM and Transmission-related revenues.

Attachment 10

PUBLIC SERVICE ELECTRIC & GAS COMPANY

Retail Sales and Revenues

(Unaudited)

September 30, 2013

Gas Sold and Transported

	Three Months		Change vs.			Nine Months		Change vs.
	Ended		2012			Ended		2012
Sales (millions therms)
Firm Sales
Residential Sales		99		10.8	%		984		21.5	%
Commercial & Industrial		97		10.0	%		685		17.4	%
Total Firm Sales		196		10.4	%		1,669		19.8	%
Non-Firm Sales
Commercial & Industrial		338		-27.6	%		870		-17.4	%
Total Non-Firm Sales		338					870
Total Sales		534		-17.1	%		2,539		3.8	%
Revenue ($ millions)
Residential Sales - Firm	$	45		-2.1	%	$	440		9.8	%
Commercial & Industrial - Firm Sales		18		9.8	%		173		27.9	%
Non-Firm Sales		9		-8.0	%		31		14.2	%
Other Operating Revenues*		41		3.9	%		124		5.8	%
Total	$	113		1.3	%	$	768		12.9	%
Gas Transported	$	101		2.1	%	$	722		7.4	%
	Three Months		Change vs.			Nine Months		Change vs.
	Ended		2012			Ended		2012
Weather Data
Degree Days - Actual		49		168.0	%		3,118		28.5	%
Degree Days - Normal		30					3,078

* Primarily Appliance Service.

Attachment 11

PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED

Statistical Measures

(Unaudited)

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2013			2012			2013			2012
Weighted Average Common Shares Outstanding (000’s)
Basic		505,858			505,914			505,900			505,942
Diluted		507,694			507,111			507,433			507,037
Stock Price at End of Period							$	32.93		$	32.18
Dividends Paid per Share of Common Stock	$	0.3600		$	0.3550		$	1.0800		$	1.0650
Dividend Payout Ratio*								57.6	%		56.8	%
Dividend Yield								4.4	%		4.4	%
Price/Earnings Ratio*								13.2			12.9
Rate of Return on Average Common Equity*								11.6	%		12.1	%
Book Value per Common Share							$	22.41		$	21.36
Market Price as a Percent of Book Value								147	%		151	%
Total Shareholder Return		2.0	%		0.1	%		11.2	%		0.9	%

* Calculation based on Operating Earnings for the 12 month period ended.

Attachment 12

PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED

Reconciling Items Excluded from Income from Continuing Operations/Net Income to Compute Operating Earnings

(Unaudited)

	Three Months Ended						Nine Months Ended						Year Ended
	September 30,						September 30,						December 31,
Pro-forma Adjustments, net of tax	2013			2012			2013			2012			2012			2011
Earnings Impact ($ Millions)
Operating Earnings	$	385		$	382		$	1,061		$	1,029		$	1,236		$	1,389
Gain (Loss) on Nuclear Decommissioning Trust (NDT)
Fund Related Activity (PSEG Power)		12			40			29			49			52			50
Gain (Loss) on Mark-to-Market (MTM)(a) (PSEG Power)		3			(76	)		(22	)		(34	)		(10	)		107
Lease Related Activity (PSEG Energy Holdings)		—			1			—			7			36			(173	)
Storm O&M, net of insurance recoveries (PSEG Power)		(10	)		—			(25	)		—			(39	)		—
Gain on Sale of Asset (PSEG Energy Holdings)		—			—			—			—			—			34
Income from Continuing Operations	$	390		$	347		$	1,043		$	1,051		$	1,275		$	1,407
Discontinued Operations		—			—			—			—			—			96
Net Income	$	390		$	347		$	1,043		$	1,051		$	1,275		$	1,503
Fully Diluted Average Shares Outstanding (in Millions)		508			507			507			507			507			507
Per Share Impact (Diluted)
Operating Earnings	$	0.76		$	0.75		$	2.09		$	2.03		$	2.44		$	2.74
Gain (Loss) on NDT Fund Related Activity (PSEG Power)		0.02			0.08			0.06			0.10			0.10			0.10
Gain (Loss) on MTM(a) (PSEG Power)		0.01			(0.15	)		(0.04	)		(0.07	)		(0.02	)		0.21
Lease Related Activity (PSEG Energy Holdings)		—			—			—			0.01			0.07			(0.34	)
Storm O&M, net of insurance recoveries (PSEG Power)		(0.02	)		—			(0.05	)		—			(0.08	)		—
Gain on Sale of Asset (PSEG Energy Holdings)		—			—			—			—			—			0.06
Income from Continuing Operations	$	0.77		$	0.68		$	2.06		$	2.07		$	2.51		$	2.77
Discontinued Operations		—			—			—			—			—			0.19
Net Income	$	0.77		$	0.68		$	2.06		$	2.07		$	2.51		$	2.96

(a) Includes the financial impact from positions with forward delivery months.

EX-99.1

Public Service Enterprise Group

PSEG Earnings Conference Call

3rd Quarter 2013

October 30, 2013

EXHIBIT 99.1

1

Forward-Looking Statement

Certain of the matters discussed in this communication about us and our subsidiaries  

future performance, including, without limitation, future revenues, earnings,

strategies, prospects, consequences and all other statements that are not purely

historical 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 filings we make with the United States Securities and

Exchange Commission (SEC), including our Annual Report on Form 10-K and

subsequent reports on Form 10-Q and Form 8-K and available on our website:

•  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 obtain sufficient coverage or recover proceeds of insurance on

such matters,

• increases in competition in energy supply markets as well as competition from

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, such as distributed generation and microgrids, and

resultant changes in customer usage patterns, including energy efficiency and

demand response.

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.

http://www.pseg.com. 

These factors include, but are not limited to:

2

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. Slide A at the end of 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 Q3 Review

Ralph Izzo

Chairman, President and Chief Executive Officer

4

Q3 Earnings Summary

$ millions (except EPS)

2013

2012

Operating Earnings

$  385

$  382

Reconciling Items, Net of Tax

5

(35)

Income from Continuing Operations/

Net Income

$  390

$  347

EPS from Operating Earnings*

$  0.76

$  0.75

Quarter ended September 30         

* See Slide A for Items excluded from Income from Continuing Operations/Net Income to reconcile to Operating Earnings.

5

Year to Date Earnings Summary

$ millions (except EPS)

2013

2012

Operating Earnings

$  1,061

$  1,029

Reconciling Items, Net of Tax

(18)

22

Income from Continuing Operations/

Net Income

$  1,043

$  1,051

EPS from Operating Earnings*

$  2.09

$  2.03

Nine months ended September 30        

* See Slide A for Items excluded from income from Continuing Operations/Net Income to reconcile to Operating Earnings.

6

PSEG –

Q3 2013 Highlights

Operating Earnings of $0.76 vs. $0.75 per share in Q3 2012

Delivered solid results in the quarter driven by Power’s locational value,

and PSE&G’s continuing investment in transmission

Raised 2013 full–year, operating earnings guidance to $2.40-$2.55 per share,

from $2.25-$2.50 per share prior

Executing on operational goals

Power met summer demand using diverse fleet

Continued control of O&M supports full-year expectations

Executing on capital program

Transmission program of $3.4 billion, including construction of 5 major transmission

projects, continues on schedule and on budget

Review of Energy Strong proposal underway by BPU

Over 80 NJ municipalities, including 7 county governments, have passed resolutions

in support of the Energy Strong infrastructure proposal 

Market developments

US

District

Courts

in

NJ

and

MD

rendered

decisions

supportive

of

competitive

markets

and FERC’s rate-setting authority

New LIPA agreement broadens and extends original contract

7

$2.40 -

$2.55E

PSEG –

Raising 2013 Operating Earnings 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

We

have

raised

full-year

2013

Operating

Earnings

guidance

to

$2.40

-

$2.55

per

share

from

$2.25

-

$2.50

per

share

2011 Operating Earnings*

2012 Operating Earnings*

2013 Operating Earnings Guidance

PSEG

2013 Q3 Operating Company Review

Caroline Dorsa

EVP and Chief Financial Officer

9

Q3 Operating Earnings by Subsidiary

Operating Earnings

Earnings per Share

$ millions (except EPS)

2013

2012

2013

2012

PSEG Power

$  216

$  217

$  0.43

$  0.43

PSE&G

168

155

0.33

0.30

PSEG Energy Holdings/

Enterprise

1

10

-

0.02

Operating Earnings*

$  385

$  382

$ 0.76

$  0.75

Quarter ended September 30

* See Slide A for Items excluded from Income from Continuing Operations/Net Income to reconcile to Operating Earnings.

10

$0.75

0.03

$0.76

(0.02)

0.00

0.25

0.50

0.75

1.00

PSEG EPS Reconciliation –

Q3 2013 versus Q3 2012

Higher Capacity 0.11

Market Pricing and

Lower Supply

Costs 0.04

Taxes & Other 0.01

Lower Hedge

Pricing (0.10)

O&M (0.04)

Lower Volume  (0.02)

Transmission 0.04

Capital

Infrastructure

Program &

Other  0.01

Weather and

Demand (0.02)

Q3 2013       

Operating

Earnings*

Q3 2012       

Operating

Earnings*

PSEG Power

PSE&G

Energy

Holdings/

Enterprise

* See Slide A for Items excluded from Income from Continuing Operations/Net Income to reconcile to Operating Earnings.

0.00

2012 Asset

Sale and

Impairment

(0.01)

Other (0.01)

11

Year to Date Operating Earnings by Subsidiary

Operating Earnings

Earnings per Share

$ millions (except EPS)

2013

2012

2013

2012

PSEG Power

$  580

$  523

$  1.14

$  1.03

PSE&G

468

453

0.92

0.89

PSEG Energy Holdings/

Enterprise

13

53

0.03

0.11

Operating Earnings*

$  1,061

$  1,029

$  2.09

$  2.03

Nine months ended September 30

•See Slide A for Items excluded from Income from Continuing Operations/Net Income to reconcile to Operating Earnings.

12

$2.03

0.11

0.03

$2.09

(0.08)

0.00

0.50

1.00

1.50

2.00

2.50

PSEG EPS Reconciliation –

YTD 2013 versus YTD 2012

YTD 2013       

Operating

Earnings*

YTD 2012       

Operating

Earnings*

Higher Capacity 0.23

Market Pricing

and Lower Supply

Costs 0.04

Gas Send-out and Fixed

Cost Recovery 0.04

Volume 0.01

Lower Hedge Pricing (0.15)

O&M (0.05)

D&A (0.01)

PSEG Power

Transmission 0.10

Capital

Infrastructure

Program

& Other 0.01

Taxes and

Other 0.02

O&M (0.02)

Weather and

Demand (0.01)

D&A (0.01)

Absence of Tax

Settlement (0.06)

PSE&G

**

PSEG Energy

Holdings/

Enterprise

Absence of Tax

Settlement 

(0.07)

Asset Sales

and Other

(0.01)

*

See Slide A for Items excluded from Income from Continuing Operations/Net Income to reconcile to Operating Earnings.

**

Prior quarter results for reconciling items may not add to year-to-date (YTD) totals due to rounding.

PSEG Power

2013 Q3 Review

14

PSEG Power –

Q3 Earnings Summary

$ millions (except EPS)

Q3 2013

Q3 2012

Variance

Operating Revenues

$  1,169

$  1,038

$  131

Operating Earnings

216

217

(1)

NDT Funds Related Activity,              

Net of Tax

12

40

(28)

Mark-to-Market, Net of Tax**

3

(76)

79

Storm O&M, Net of Insurance

Recoveries

(10)

-

(10)

Income from Continuing

Operations/Net Income

221

181

40

EPS from Operating Earnings*

$  0.43

$  0.43

$  (0.00)

* See Slide A for Items excluded from Income from Continuing Operations/Net Income to reconcile to Operating Earnings.

**Includes the financial impact from positions with forward delivery months.

15

$0.43

0.03

$0.43

(0.03)

0.00

0.10

0.20

0.30

0.40

0.50

0.60

Higher Capacity 0.11

Market Pricing

and Lower Supply

Costs 0.04

Lower Hedge Pricing

(0.10)

Lower Volume  (0.02)

PSEG Power EPS Reconciliation –

Q3 2013 versus Q3 2012

Q3 2013      

Operating

Earnings*

Q3 2012       

Operating

Earnings*

O&M (0.04)

Taxes and

Other 0.01

* See Slide A for Items excluded from Income from Continuing Operations/Net Income to reconcile to Operating Earnings.

16

PSEG Power –

Generation Measures

Quarter

ended

September

30

Total Nuclear

Total Coal*

Oil & Natural Gas

* Includes figures for Pumped Storage. Includes Hudson and Mercer when run on gas.

PSEG Power –

Generation (GWh)

Quarter

ended

September

30

PSEG Power –

Capacity Factors (%)

2012

2013

Combined Cycle

PJM and NY

67.1%

60.4%

Coal

NJ (Coal/Gas)

26.6%

16.3%

PA

79.0%

83.1%

CT

3.8%

11.6%

Nuclear

92.0%

91.0%

7,559

7,498

2,071

1,936

5,289

4,677

7,500

15,000

2012

2013

0

14,919

14,111

17

PSEG Power –

Generation Measures

Nine

Months

ended

September

30

Total Nuclear

Total Coal*

Oil & Natural Gas

* Includes figures for Pumped Storage.  Includes Hudson and Mercer when run on gas. 

PSEG Power –

Generation (GWh)

40,769

40,986

Nine

Months

ended

September

30

PSEG Power –

Capacity Factors (%)

2012

2013

Combined Cycle

PJM and NY

60.3%

57.0%

Coal*

NJ (Coal/Gas)

14.2%

14.2%

PA

68.7%

79.4%

CT

2.9%

16.6%

Nuclear

92.5%

93.2%

22,604

22,783

4,656

5,526

13,509

12,677

0

15,000

30,000

45,000

2012

2013

18

PSEG Power –

Fuel Costs

Quarter ended September 30

($ millions)

2012

2013

Coal

64.9

45.1

Oil & Gas

166.7

146.1

Total Fossil

231.6

191.2

Nuclear

52.7

56.5

Total Fuel Cost

284.3

247.7

Total Generation

(GWh)

14,919

14,111

$ / MWh

19.05

17.55

PSEG Power –

Fuel Costs

Nine months ended

September 30

($ millions)

2012

2013

Coal

142.4

141.3

Oil & Gas

407.8

483.8

Total Fossil

550.2

625.1

Nuclear

150.7

166.6

Total Fuel Cost

700.9

791.7

Total Generation

(GWh)

40,769

40,986

$ / MWh

17.19

19.32

19

PSEG Power –

Gross Margin Performance

Margins aided by higher capacity pricing through mid-2014

Higher year-over-year spot market prices continued in Q3

Lower cost Marcellus gas contributing to fuel cost savings

Regional Performance

Region

Q3 2013 

Gross

Margin ($M)

2013 Performance

PJM

$691

Decline in hedged energy prices

offset by full quarter of higher

capacity prices and lower fuel costs

New

England

$19

Milder weather

New York

$12

Major maintenance outage limited

production during Q3

$0

$35

$70

2011

2012

2013

PSEG Power Gross Margin ($/MWh)

$54

$47

$51

Quarter ended

September  30

$0

$35

$70

2011

2012

2013

Nine months ended

September  30

$53

$45

$47

•

Lower cost supplies of

shale gas have been

beneficial to both PSE&G

customers and PSEG

Power

•

Over 50% of our available

pipeline capacity can

access market area

supplies of shale gas

•

Power’s generating units

sit in close proximity to

the Marcellus fairway

•

Power buys approximately

350BCF/year of gas

•

Availability of a robust gas

portfolio of storage and

pipeline capacity primarily

benefits PSE&G’s gas 

customers and then Power,

as conditions permit

Gulf Coast Supply

0.7 BCF/D

Shale Supply

0.6 BCF/D

Storage

0.9 BCF/D

Albany

PSEG’s locational advantage and gas basis

New York

20

21

Hedging Update…

Contracted Energy*

* Hedge percentages and prices as of September 30, 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.

Volume TWh

8

35

35

Base Load

% Hedged

100%

100%

55-60%

(Nuclear and Base Load Coal)

Price $/MWh

$50

$48

$48

Volume TWh

5

18

17

Intermediate Coal, Combined

% Hedged

30-35%

5-10%

0%

Cycle, Peaking

Price $/MWh

$50

$48

$48

Volume TWh

13-14

53-55

52-54

Total

% Hedged

70-75%

65-70%

35-40%

Price $/MWh

$50

$48

$48

Oct -Dec

2013

2014

2015

22

PSEG Power –

Q3 2013 Operating Highlights

Power met all demand requirements during the hottest days of July

Q3 output declined by 5.4% from the Q3 2012 reflecting maintenance at NY CCGT

Strong nuclear performance has resulted in a YTD nuclear capacity factor of 93.2%

Hope Creek refueling outage underway

Operations

Regulatory and Market

Environment

Financial

Recent NJ and MD Federal Court decisions supportive of competitive markets

Average energy only hedge price for 2013 is $50/MWh

Lower cost Marcellus gas continuing to provide fuel cost savings

Power’s total debt as a percentage of capital at September 30 was 28%

PSE&G

2013 Q3 Review

24

PSE&G –

Q3 Earnings Summary

$ millions (except EPS)

Q3 2013

Q3 2012

Variance

Operating Revenues

$  1,666

$  1,683

$  (17)

Operating Expenses

Energy Costs

661

756

(95)

408

366

42

236

216

20

15

24

(9)

Total Operating Expenses

1,320

1,362

(42)

Operating Earnings / Net Income

$  168

$  155

$  13

EPS from Operating Earnings*

$  0.33

$  0.30

$  0.03

* See Slide A for Items excluded from Income from Continuing Operations/Net Income to reconcile to Operating Earnings.

Operation & Maintenance

Taxes Other than Income Taxes

Depreciation & Amortization

25

$0.30

0.03

0.01

$0.33

(0.01)

0.00

0.05

0.10

0.15

0.20

0.25

0.30

0.35

PSE&G EPS Reconciliation –

Q3 2013

versus Q3 2012

Q3 2013      

Operating

Earnings

Q3 2012    

Operating

Earnings

Transmission 0.04

Capital

Infrastructure

Program

and Other 0.01

Weather

and Demand (0.02)

O&M and D&A

Interest

and

Other 

26

PSE&G –

Monthly Summer Weather Data

2013

vs.

2012

vs.

Normal

-8.0% Q3 2013 vs. Q3 2012

+7.4% Q3 2013 vs. Normal

6,977

3,691

1,687

6,183

5,196

2,054

5,111

4,502

1,895

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

July

August

September

2013

2012

Normal

PSE&G Monthly TemperatureHumidity Index (THI)

27

PSE&G –

Q3 Operating Highlights

All five major Transmission projects on schedule and on budget

BPU review of Energy Strong infrastructure proposal underway;

Public hearings concluded in October

2014 FERC Formula Rate filing submitted

PSE&G announced a 33% gas bill credit for November and December 2013

to reflect lower commodity costs for residential gas customers

PSE&G earned its authorized return

Issued $600 million of secured MTNs and retired $300 million of maturities in Q3

Operations

Regulatory and Market

Environment

Financial

Weather in Q3 2013 warmer than normal but cooler than Q3 2012

Transmission revenues added $0.04 per share over Q3 2012

O&M remains under control

PSEG Energy Holdings/Enterprise

2013 Q3 Review

29

PSEG Energy Holdings/Enterprise –

Q3 Earnings Summary

$ millions (except EPS)

Q3 2013

Q3 2012

Variance

Operating Earnings

$  1

$  10

$  (9)

Lease Related Activity

-

1

(1)

Net Income

$  1

$  11

$  (10)

EPS from Operating Earnings*

$  0.00

$  0.02

$  (0.02)

* See Slide A for Items excluded from Income from Continuing Operations/Net Income to reconcile to Operating Earnings.

30

PSEG Energy Holdings/Enterprise –

Q3 Operating Highlights

Financial

LIPA –

Amended Operating Services Agreement will begin January 1, 2014

subject to LIPA receiving IRS ruling on tax status of debt 

NRG Energy’s announced acquisition of Edison Mission Energy

would cure all monetary defaults at closing and preserve Holdings’

entire equity value in the Powerton and Joliet leases

Payments on Holdings’

remaining lease portfolio are current

Q4 2013 commercial operation of $50 million investment in 19 MW,

Badger 1 solar farm in Arizona

•

Increases PSEG-Long Island’s management responsibility to operate

and maintain the LIPA T&D system

•

Extends original 10-year contract by two years

•

PSEG Power will procure LIPA’s fuel requirements beginning 2015

•

PSEG-LI compensation will increase in 2016 for expanded management role

PSEG

32

PSEG Financial Highlights

2013

operating

earnings

guidance

raised

to

$2.40

-

$2.55

per

share

Focused on maintaining operating efficiency and customer reliability

PSE&G’s operating earnings on track to grow at double-digit rate in 2013

Executing PSE&G’s existing $3.4 billion Transmission capital spending program

on

schedule

and

on

budget

–

fueling

double-digit

growth

in

PSE&G

operating

earnings through 2015, based on approved programs

Financial position remains strong

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 September 30, 2013

Long history of returning cash to the shareholder through the common dividend,

with opportunity for future growth

33

PSEG 2013 Operating Earnings Guidance -

By Subsidiary

$ millions (except EPS)

2013E

2012A

PSEG Power

$630 –

$685

$644  

PSE&G

$585 –

$600

$528

PSEG Energy

Holdings/Enterprise

$0 –

$10  

$64

Operating Earnings*

$1,215 –

$1,295

$1,236

Earnings per Share

$2.40 –

$2.55

$2.44

* See Slide A for Items excluded from Income from Continuing Operations/Net Income to reconcile to Operating Earnings.

E = Estimate     A = Actual   

PSEG Liquidity as of September 30, 2013

Expiration

Total

Available

Company

Facility

Date

Facility

Usage

Liquidity

($Millions)

PSE&G

5-year Credit Facility

Mar-18

$600

1

$13

$587

5-Year Credit Facility (Power)

Mar-17

$1,600

58

$1,542

5-Year Credit Facility (Power)

Mar-18

$1,000

2

0

$1,000

5-Year Bilateral (Power)

Sep-15

$100

100

$0

5-year Credit Facility (PSEG)

Mar-17

$500

5

$495

5-year Credit Facility (PSEG)

Mar-18

$500

3

0

$500

Total

$4,300

$176

$4,124

1 PSE&G Facility to be reduced by $29M on April 15, 2016

$154

2 Power Facility to be reduced by $48M on April 15, 2016

PSE&G ST Investment

$0

3 PSEG Facility to be reduced by $23M on April 15, 2016

Total Liquidity Available

$4,278

Total Parent / Power Liquidity

$3,691

PSEG /

Power

PSEG Money Pool ST Investment

34

Items Excluded from Income from Continuing Operations 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.

A

2013

2012

2013

2012

2012

2011

Earnings Impact ($ Millions)

Operating Earnings

385

$        

382

$     

1,061

$     

1,029

$   

1,236

$     

1,389

$   

Gain (Loss) on Nuclear Decommissioning Trust (NDT)

Fund Related Activity (PSEG Power)

12

40

29

49

52

50

Gain

(Loss)

on

Mark-to-Market

(MTM)

(a)

(PSEG

Power)

3

(76)

(22)

(34)

(10)

107

Lease Related Activity (PSEG Energy Holdings)

-

1

-

7

36

(173)

Storm O&M, net of insurance recoveries (PSEG Power)

(10)

-

(25)

-

(39)

-

Gain on Sale of Asset (PSEG Energy Holdings)

-

-

-

-

-

34

Income from Continuing Operations

390

$        

347

$     

1,043

$     

1,051

$   

1,275

$     

1,407

$   

Discontinued Operations

-

-

-

-

-

96

Net Income

390

$        

347

$     

1,043

$     

1,051

$   

1,275

$     

1,503

$   

Fully Diluted Average Shares Outstanding (in Millions)

508

507

507

507

507

507

Per Share Impact (Diluted)

Operating Earnings

0.76

$       

0.75

$    

2.09

$      

2.03

$    

2.44

$      

2.74

$    

Gain (Loss) on NDT Fund Related Activity (PSEG Power)

0.02

0.08

0.06

0.10

0.10

0.10

Gain (Loss) on MTM

(a)

(PSEG Power)

0.01

(0.15)

(0.04)

(0.07)

(0.02)

0.21

Lease Related Activity (PSEG Energy Holdings)

-

-

-

0.01

0.07

(0.34)

Storm O&M, net of insurance recoveries (PSEG Power)

(0.02)

-

(0.05)

-

(0.08)

-

Gain on Sale of Asset (PSEG Energy Holdings)

-

-

-

-

-

0.06

Income from Continuing Operations

0.77

$       

0.68

$    

2.06

$      

2.07

$    

2.51

$      

2.77

$    

Discontinued Operations

-

-

-

-

-

0.19

Net Income

0.77

$       

0.68

$    

2.06

$      

2.07

$    

2.51

$      

2.96

$    

(a) Includes the financial impact from positions with forward delivery months.

Three Months Ended

Nine Months Ended

PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED

Reconciling Items Excluded from Income from Continuing Operations/Net Income to Compute Operating Earnings

(Unaudited)

September 30,

September 30,

Pro-forma Adjustments, net of tax

Year Ended

December 31,