We have the

energy

to make things better

…

for you, for our investors

and for our stakeholders.

EXHIBIT 99

PSEG

Kathleen Lally

VICE PRESIDENT,

INVESTOR RELATIONS

Caroline Dorsa

EXECUTIVE VICE PRESIDENT AND

CHIEF FINANCIAL OFFICER

Ralph Izzo

CHAIRMAN, PRESIDENT AND

CHIEF EXECUTIVE OFFICER

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: 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.

3

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. Slides A and B at the end of this presentation include 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

PSEG OVERVIEW

& OUTLOOK

PSEG Strategy

Leveraging the

strength of PSEG’s

balance sheet to

invest primarily in

our stable, regulated

business in ways

that meet customer

needs and state

goals as we protect

the upside of the

merchant business

and provide growth

for our shareholders

DISCIPLINED

INVESTMENT

OPERATIONAL

EXCELLENCE

FINANCIAL

STRENGTH

ENGAGED

WORKFORCE

6

PSEG meeting the market’s challenges

with our strong platform of assets

ASSETS AND OPERATING EARNINGS ARE FOR THE YEAR ENDED 12/31/2012.

*ENERGY HOLDINGS INCLUDES PARENT.

SEE SLIDE A FOR ITEMS EXCLUDED FROM INCOME FROM CONTINUING OPERATIONS/NET INCOME TO RECONCILE TO OPERATING EARNINGS.

.

PSEG Energy

Holdings positioned

to pursue attractive

renewable

generation and

develop new

business

opportunities

Assets $1.5B

Operating Earnings $64M

Renewable

Investments

PSE&G positioned

to meet NJ’s

energy policy and

economic growth

objectives with an

investment program

exceeding $10 billion

through 2017

Assets $19.2B

Operating Earnings $528M

Electric & Gas Delivery

and Transmission

PSEG Power’s

low-cost, base

load and load

following fleet is

geographically well

positioned and

environmentally

responsible

Assets $11.0B

Operating Earnings $644M

Regional

Wholesale Energy

7

8

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% (planned

1

)

•

$866

•

$0

•

$0

•

1.6%

•

29.3TWh

•

$0

$2.91

•

0.8% (actual

2

)

•

$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

SLIDE

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

Common Dividend Per Share

3

$1.42

9

Superstorm

Sandy met by

an exceptional

response

2.1 million PSE&G

customer restorations (2X Hurricane Irene and 3X the October ’11

Snowstorm)

96

Electric

Substations

Damaged

(39%

of

the

total)

14

Switching

Stations

Affected

(33%

of

total)

51

of

154

Transmission

Lines

Interrupted

(33%

of

total)

2,427

Utility

Poles

Replaced

or

Repaired

48,000

Trees

Removed

or

Trimmed

~4,200 mutual aid or contract workers brought in to assist restoration efforts

PSEG

Power’s

assets

were

stress

tested

by

Superstorm

Sandy,

but

when

the

load

returned in the days following, Power’s assets were available

The storm affected

PSE&G and Power

10

PSEG Capital Spending focused on growth

PSEG 2013-2015E Capital Spending*

$6.3 Billion

by Subsidiary

PSEG 2013-2015E Capital Spending*

$6.3 Billion

Growth / Environmental / Maintenance

E = ESTIMATE; CAPITAL EXCLUDES IDC AND AFUDC.

*THIS FORECAST DOES NOT REFLECT THE IMPACT OF THE ENERGY STRONG PROPOSAL RECENTLY FILED WITH THE NJBPU.  DATA AS OF

JUNE 30, 2013.

$4.2B

67%

$0.3B

6%

$1.5B

24%

$0.2B

2%

$0.05B

1%

PSE&G Growth

Power Growth

Maintenance

Environmental

Holdings Growth

$5.1B

81%

$1.0B

16%

$0.05B

1%

$0.1B

2%

PSE&G

Power

Holdings

Parent SC

11

What’s Next: PSEG’s Capital Spending expansion

opportunity directed toward growth in regulated business with

~ 25% growth in planned spending

Potential

PSEG 2013-2015E Capital Spending*

$7.5 Billion

by Subsidiary

Potential

PSEG 2013-2015E Capital Spending*

$7.5 Billion

Growth / Environmental / Maintenance

E

=

ESTIMATE;

CAPITAL

EXCLUDES

IDC

AND

AFUDC.

*DATA

AS

OF

JUNE

30,

2013.

$5.4B

73%

$0.3B

4%

$1.5B

20%

$0.2B

2%

$0.05B

1%

PSE&G Growth

Power Growth

Maintenance

Environmental

Holdings Growth

$6.3B

85%

$1.0B

13%

$0.1B

1%

$0.1B

1%

PSE&G

Power

Holdings

Parent SC

12

PSE&G’s Energy Strong Capital Program

addresses new reality

New ten-year, $3.9 Billion Infrastructure Program filed February 2013 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

The 10-year Energy Strong proposal includes:

Protecting 40 utility installations from severe storms ($1.7 Billion)

Making the electric grid smarter and easier to repair ($460 Million)

Adding backup distribution lines and system redundancies ($550 Million)

Undergrounding 20 miles of overhead distribution lines ($60 Million)

Modernizing the gas distribution system ($1.2 Billion)

PSE&G is seeking BPU approval to implement the first five years of the Energy Strong

proposal, an investment of $2.6 Billion

The proposed filing creates ~5,800 jobs and stimulates economic activity for

New Jersey businesses

13

74 local NJ towns and 7 counties

support

•

74 municipalities and seven counties (Bergen, Hudson, Mercer,

Passaic, Somerset, Union and Middlesex) 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

14

PSEG

Power

value

advantaged

by

asset

diversity,

fuel flexibility and location

Fuel Diversity*

Total MW: 13,226

Energy Produced*

Total GWh: 52,511

Energy Market Served*

Total MW: 13,226

Intermediate

Peaking

Base load

*2012

**INCLUDES NJ UNITS THAT FUEL SWITCH TO GAS.

18%

45%

8%

28%

1%

32%

57%

11%

42%

25%

33%

Gas

Pumped

Storage

Nuclear

Oil

Coal**

Where we’re going …

PSE&G operating earnings

are forecast to grow at double digit rate through

2015

•

O&M Growth per year

•

PSE&G Rate Base

Transmission

E&G Distribution

EMP

•

EFORd

Rate

-

CCGT

•

Nuclear Generation

•

Holdings Solar Investment

•

LIPA Earnings

PSEG Focus

($ millions, except as noted)

•

2.2%

(forecast

3

)

•

$12,600

•

$5,000

4

•

$6,900

5

•

$700

5

•

1.4%

•

30.4TWh

•

$290

•

$15-$20

6

2015E

•

0.8%

(actual

2

)

•

$9,000

•

$2,500

•

$5,900

•

$600

•

1.7%

•

29.8TWh

•

$240

•

$0

2012

•

2.4%

(planned

1

)

•

$6,800

•

$866

•

$5,900

•

$0

•

1.6%

•

29.3TWh

•

$0

•

$0

2008

(1)

Planned

compound

annual

growth

rate

2008-2012.

(2)

Actual

compound

annual

growth

rate

2008-2012.

(3) Two-year compound annual growth rate from 2013.

(4) Includes additional Transmission hardening.

(5) Includes approved solar programs and proposed ES programs.

(6) Reflects a fully-executed, expanded Operating Services Agreement with LIPA.

.

E = ESTIMATE.

.

15

16

Balance Sheet Strengthened

PSEG has reduced risk

PSEG Total Capitalization

2009

2012

Power

Power

PSE&G

PSE&G

Equity

55%

Debt

45%

Equity

59%

Debt

41%

57%

43%

55%

45%

70%

30%

51%

49%

17

PSEG Year to Date 2013 -

Highlights

Operating Earnings of $2.09 vs. $2.03 per share for YTD 2012

Delivered solid results in Q3 driven by Power’s locational value, and PSE&G’s

continuing investment in transmission

Raised

2013

full–year,

operating

earnings

guidance

from

$2.25

-

$2.50

to $2.40 -

$2.55 per share

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

74 NJ municipalities and 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 will broaden and extend original agreement

when fully executed 

18

Raised 2013 operating earnings guidance

PSEG Operating Earnings

$ Millions (except EPS)

2013E

PSEG Power

$630 -

$685

PSE&G

$585 -

$600

PSEG Energy Holdings/Parent

$0 -

$10

Operating Earnings*

$1,215 -

$1,295

2013 Earnings Guidance

$2.40

-

$2.55

E = ESTIMATE

*SEE SLIDE A FOR ITEMS EXCLUDED FROM INCOME FROM CONTINUING

OPERATIONS/NET INCOME TO RECONCILE TO OPERATING EARNINGS.

Based on our performance year-to-date, we have raised guidance for

full year operating earnings from $2.25-$2.50 to $2.40-$2.55 per share

19

PSEG Annual Dividend

A long history of growth and returning cash to

shareholders

Payout Ratio

62%

70%

63%

66%

43%

44%

43% 

44%

50%

58%

58%*

5-year Rate of Growth 2.22%

10-year Rate of Growth 2.92%

PSEG Annual Dividend Rate 

*2013 PAYOUT RATIO REFLECTS THE MIDPOINT OF UPDATED 2013 OPERATING EARNINGS GUIDANCE.

**INDICATED ANNUAL RATE.

$1.08

$1.10

$1.12

$1.14

$1.17

$1.29

$1.33

$1.37

$1.37

$1.42

$1.44

**

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

20

Value Proposition

PSEG is positioned to expand its investment in PSE&G

projects that provide reasonable, risk adjusted returns,

in ways that meet customer needs and state goals,

given strong cash flow of Power and growing cash

contribution from PSE&G.

PSEG will maintain a strong financial profile that

provides the opportunity to achieve our growth

objectives and maintains our track record of returning

cash to shareholders.

PSE&G

PSE&G

strategy

Building a

sustainable

platform that

balances

reliability,

customer rates

and public

policy to ensure

growth at

reasonable

returns

DISCIPLINED

INVESTMENT

ENGAGED

WORKFORCE

FINANCIAL

STRENGTH

OPERATIONAL

EXCELLENCE

22

PSE&G is the largest electric and gas distribution and transmission utility

company in New Jersey

Electric

Gas

Customers

Growth (2008 –

2012)

2.2 Million

0.6%

1.8 Million

0.6%

Electric Sales and Gas Sold and Transported

41,641 GWh

3,397 M

Therms

Projected

Annual

Load

Growth

(2013

–

2015)

0.7%*

0.2%*

Historical Annual Peak Load Growth

Transmission

(2008

–

2012)

0.4%**

Projected Annual Load Growth

Transmission

(2013

–

2015)

1.4%

Sales Mix

Residential

33%

60%

Commercial

57%

36%

Industrial

10%

4%

Transmission

Electric

Gas

Approved Rate of Return

11.68% ROE***

10.3% ROE

10.3% ROE

Renewables and Energy Efficiency

Approved Programs

2009-2012

Total

Program Plan

Solar Loan I-III

67 MW

179 MW

Solar 4 All and Extension

74 MW

125 MW

Energy Efficiency Annual Electric savings

160 GWh

200 GWh

Energy Efficiency Annual Gas savings

5M Therms

7M Therms

23

* WEATHER NORMALIZED - ESTIMATED ANNUAL GROWTH PER YEAR OVER FORECAST PERIOD.

** TRANSMISSION LOAD GROWTH CAGR UTILIZES 2007 AS BASE YEAR.

*** SPECIFIC PROJECTS APPROVED FOR INCENTIVE RATE TREATMENT WITH ADDITIONAL ROE.

National

reliability

award winner

and recognized

for emergency

response during

Hurricane Irene

24

During

Superstorm

Sandy

strong

winds, heavy

rainfall and storm

surges caused

significant

damage to our

infrastructure

25

PSE&G brought in more than 4,000

contractors and mutual aid workers at the height of

restoration efforts

26

PSE&G’s

response

to customer

outages

during recent

major events

Restoration response incorporated lessons learned from

Hurricane Irene

Cumulative Customers Restored

27

PSE&G’s operating earnings grew ~10%*

with increased investment, cost control and supportive rate

mechanisms

* COMPOUND ANNUAL GROWTH RATE

SEE SLIDE A FOR ITEMS EXCLUDED FROM INCOME FROM CONTINUING OPERATIONS/

NET INCOME TO RECONCILE TO OPERATING EARNINGS.

28

$0.71

$0.63

$0.85

$1.03

$1.04

2008

2009

2010

2011

2012

PSE&G Operating Earnings per Share

Growth in rate base is driven by investments with

favorable recovery mechanisms

6%

PSE&G’s

rate base

has grown ~7%

annualized

with a

focus on meeting

the State’s goals

and customers’

needs

29

PSE&G Rate Base

2008

2012

Renewables

& Energy

Solutions

Transmission

Gas

Distribution

Electric

Distribution

13%

28%

33%

25%

54%

41%

$9.0B

$6.8B

Represents ~28% of rate base in 2012

Overall,

Transmission

has

delivered

on planned

spending

30

0

200

400

600

800

1,000

1,200

2009 2009

Plan

Actual

2010 2010

Plan

Actual

2011 2011

Plan

Actual

2012 2012

Plan

Actual

Remaining Transmission

Susquehanna

-Roseland

North East Grid

North Central Reliability

Mickelton-Gloucester

-Camden

Burlington-Camden

PSE&G’s Transmission Capital Expenditures

Providing

solutions

for

New Jersey’s

energy and

economic

development

goals

($ Millions)

Approval

Date

Forecast

Amount*

Spend As

of

9/30/13

Remaining

Spending

Renewables

Solar Loan I & II

2008-

2009

$244

$229

$15

Solar 4 All

July 2009

464

457

7

Solar Loan III

May 2013

199

-

199

Solar 4 All Extension

May 2013

247

-

247

Energy Efficiency

Carbon Abatement

December

2008

45

45

-

Energy Efficiency

Economic Stimulus

July 2009

161

158

3

Demand Response

July 2009

35

31

4

Energy Efficiency Economic

Stimulus Extension

July 2011

94

37

57

Distribution

NJ Capital Infrastructure

Program I (CIP I)

April 2009

702

702

-

NJ Capital Infrastructure

Program II (CIP II)

July 2011

280

280

-

Total

$2,471

$1,939

$532

*SOLAR

4

ALL

EXT

AND

SOLAR

LOAN

3

REFLECT

BPU

APPROVED

PROGRAM

SPEND

“UP

TO”

LISTED

AMOUNTS.

31

Focus on controlling O&M allows us to earn

our authorized return

* EXCLUDES REGULATORY CLAUSES                 ** INCLUDES $40M IMPACT FROM SUPERSTORM SANDY IN 2012                  E = ESTIMATE

32

0

200

400

600

800

1,000

1,200

2008

2009

2010

2011

2012 **

2013E

PSE&G O&M*

2008

–

2013

CAGR:

1.4%

PSE&G’s capital program will continue to be

focused on delivering energy solutions to meet New Jersey’s

public policy

PSE&G’s Capital Expenditures

DATA AS OF JUNE 30, 2013.     * PROPOSED FILINGS INCLUDE ENERGY STRONG (ES) AND EEEIII.               E = ESTIMATE

33

0

500

1,000

1,500

2,000

2,500

2009

2010

2011

2012

2013E

2014E

2015E

2016E

2017E

Transmission Hardening

Proposed Filings*

Approved Solar/Energy Efficiency

Transmission

Gas Distribution

Electric Distribution

2013-2017 proposed investment plan

would grow our current capital plan by up to 50%

* Distribution ES and Transmission Hardening extend 10 years

DATA AS OF JUNE 30, 2013.  E = ESTIMATE

2013-2017E Capital Expenditures

Existing Plan

$7.2 Billion

Existing Plan and Proposed Filings

$10.3 Billion

*

*

22%

43%

4%

2%

Distribution

Distribution ES Filing

Transmission

Transmission Hardening

Approved Solar/Energy Efficiency

32%

6%

62%

Energy Efficiency Filings

34

23%

6%

PSE&G’s proposed investments would be

recovered through contemporaneous recovery mechanisms

Contemporaneous Recovery Mechanisms

Traditional Recovery Mechanisms

DATA AS OF JUNE 30, 2013.  E = ESTIMATE

35

2013-2017E Potential Capital Spending by Recovery Method

Energy Strong Filing (ES)

Solar/Energy Efficiency

Clauses

FERC Formula Rates

Distribution Base Rates

$10.3 Billion

23%

7%

48%

22%

36

PSE&G’s existing major transmission

investment program remains on schedule and on budget

Major Transmission Projects

Approved

ROE

Inclusion

of CWIP in

Rate Base

100%

Recovery

of Costs

Due to

Abandonment

Total

Estimated

Project

Costs

Expected

In-service

Date

Susquehanna-Roseland

12.93%

$790

June 2014 /

June 2015

Northeast Grid Reliability

11.93%

$895

June 2015

North Central Reliability

11.68%

$390

June 2014

Burlington –

Camden 230kV

11.68%

$399

June 2014

Mickleton –

Gloucester-Camden 230kV

11.68%

$435

June 2015

Susquehanna-Roseland consists of

constructing 150 miles of 500kV circuit (46 miles in NJ) with

two new 500kV GIS switching stations at Roseland and

Hopatcong

Project

Estimate

Up To*

Through

Year-end 2012

2013-2015E

Expected

In-service Date

$790M

$324M

$466M

June 2014 /

June 2015

•

PJM RTEP project b0489

•

ROE of 12.93% (including 1.25% incentive)

•

100% CWIP in rate base during development

•

100% recovery of prudently incurred costs due to abandonment

Project Status:  Major permitting & siting complete, outside and

inside plant

37

*PROJECT IS SHARED WITH PPL. PROJECT ESTIMATE REPRESENTS PSE&G’S CONSTRUCTION RESPONSIBILITY FOR THE NJ PORTION.     E = ESTIMATE

construction in progress

Project

Estimate Up

To

Through Year-

end 2012

2013-2015E

Expected

In-service Date

$895M

$88M

$807M

June 2015

•

PJM RTEP project b1304

•

ROE of 11.93% (including 0.25% incentive)

•

100% CWIP in rate base during development

•

100% recovery of prudently incurred costs due to abandonment

Project Status: Engineering, licensing, and outside plant

E = ESTIMATE

38

underground construction in progress

Northeast Grid Reliability consists of

upgrading approximately 50 overhead circuit miles of 138kV

transmission line to 230kV, constructing ~18 miles of new

underground 230kV lines, and converting twelve existing

stations to 230kV operation

39

North Central Reliability consists of upgrading

55 circuit miles of 138kV transmission line to 230kV, and

converting six existing stations to 230kV operation

Project

Estimate Up To

Through Year-

end 2012

2013-2015E

Expected

In-service Date

$390M

$163M

$227M

June 2014

•

PJM RTEP project b1154

•

ROE of 11.68%

•

100% CWIP in rate base during development

•

100% recovery of prudently incurred costs due to abandonment

Project Status: Major permitting & siting complete, outside and inside

E = ESTIMATE

39

plant construction in progress

Burlington-Camden 230kV consists of upgrading

37 circuit miles (30 miles of overhead and 7 miles of under-

ground) of 138kV transmission line to 230kV, converting the

existing stations to 230kV operation

Project

Estimate

Up To

Through

Year-end

2012

2013-

2014E

Expected

In-service

Date

$399M

$169M

$230M

June

2014

•

PJM RTEP project b1156

•

ROE of 11.68%

•

100% CWIP in rate base during

development

•

100% recovery of prudently incurred costs

due to abandonment

Project Status: Major permitting & siting

E = ESTIMATE

40

complete, outside and inside plant

construction in progress

Mickleton-Gloucester-Camden 230kV

consists of upgrading 10 circuit miles of overhead transmission,

installing ~16 circuit miles of new 230kV underground, 10

circuit miles of new 230kV overhead, and

modifications/upgrades at five existing stations

Project

Estimate Up To

Through Year-

end 2012

2013-2015E

Expected

In-service Date

$435M

$24M

$411M

June 2015

•

PJM RTEP project b1398

•

ROE of 11.68%

•

100% CWIP in rate base during development

•

100% recovery of prudently incurred costs due to abandonment

E = ESTIMATE

41

Project Status: Major permitting & siting complete, outside and inside

plant construction in progress

State policy imperatives have been redefined

by Superstorm Sandy

* NJBPU proceeding on storm recovery is currently in discovery phase.

42

Storm report issued by NJBPU

focusing on:

Preparedness Efforts

Communications

Restoration and Response

Post Event Analysis

Underlying Infrastructure Issues

Storm Deferral Filings:

On December 19, 2012 the 

NJBPU granted a PSE&G request

for general authority to defer storm

restoration costs, thereby making

such costs potentially recoverable

in future rate filings

On February 20, 2013, at its open

public meeting, the BPU voted that

the recovery of all such storm

restoration costs would be

reviewed in a generic (multi-utility)

proceeding*

We have also responded with a plan focused

on infrastructure hardening and resiliency

43

PSE&G filed a petition on February 20,

2013, with the NJBPU seeking

approval for the Energy Strong

Program (ES) which will harden electric

and gas distribution infrastructure and

increase the resiliency of the electric

distribution system

The filing complements the NJBPU’s

recently issued order requiring all

Electric Distribution Companies to 

take specific actions to improve

preparedness and response to 

major storms

ES program represents a potential

investment of approximately $3.9

billion over the next 10 years.  PSE&G

has asked for initial funding approval

of $2.6 billion during the first 

five years

Additional Transmission investment 

of approximately $1.5 billion would

be included in future FERC Formula 

Rate filings

Lower commodity costs and expiration of

certain transition charges are expected to offset the impact to

customer bills

*FOR THE TYPICAL COMBINED ELECTRIC & GAS RESIDENTIAL CUSTOMER, 2018 BGS (INCLUDING TRANSMISSION) / BGSS, AS WELL AS SBC, WNC, RAC AND DISTRIBUTION RATES HELD CONSTANT AS OF THE ES FILING DATE (FEB-2013).  RATES RELATED TO

ELECTRIC RESTRUCTURING:  SECURITIZATION (STC), NON-UTILITY GENERATION CHARGE (NGC), & TRANSITIONAL ENERGY FACILITIES ASSESSMENT (TEFA), ARE REDUCED TO ZERO BY 2018.  THE RGGI RECOVERY CHARGE (RRC), SOLAR PILOT RECOVERY

CHARGE (SPRC), AND CAPITAL ECONOMIC STIMULUS INFRASTRUCTURE INVESTMENT PROGRAM (CIP I) AND THE CIP EXTENSION (CIP II) BILL IMPACTS ARE INCLUDED IN THEIR RESPECTIVE GAS & ELECTRIC BARS AND FORECASTED BASED UPON MAR-2013

ESTIMATES.  THE BILL IMPACTS FOR ES PROGRAM BASED UPON THE PROPOSED FILING AND  S4AEXT/SL3 IMPACTS ARE BASED UPON THE BPU APPROVED PROGRAM.

Typical Residential Annual Bill

44

$4,000

$3,500

$3,000

$2,500

$2,000

$1,500

$1,000

$500

$0

2008

2013

2018*

ES

S4AExt/SL3

Gas

Electric

CPI

PSE&G’s 2013 operating earnings

benefiting from transmission growth and cost containment

initiatives

$528

2012

2013 Guidance

PSE&G Operating Earnings*

($ Millions)

$585 -

$600E

E

=

ESTIMATE

*SEE SLIDE A FOR ITEMS EXCLUDED FROM INCOME FROM CONTINUING OPERATIONS/NET INCOME TO RECONCILE TO

OPERATING EARNINGS.

45

LONG ISLAND

POWER AUTHORITY

LIPA T&D management contract

Amended Operating Services Agreement will begin January 1, 2014,

subject to LIPA receiving IRS ruling on tax status of debt 

LIPA /National Grid Contract

Thru Dec 2013

PSEG Transition Period

2012-2013

PSEG Long Island

Operating Period

2014 -

2025

Successful management of the LIPA transmission and distribution system

may lead to additional growth opportunities

47

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 POWER

PSEG Power

strategy

Focused on safety

performance, unit

reliability, competitive

cost structure with

control of

maintenance costs,

achieving operational

excellence, and

supporting market

rules to maintain a

level playing field

DISCIPLINED

INVESTMENT

OPERATIONAL

EXCELLENCE

FINANCIAL

STRENGTH

ENGAGED

WORKFORCE

49

PSEG Power creating value by responding to changing

markets and regulations

50

Safety/Environmental Focus

Fleet Diversity/Efficiency Focus

Fleet diversity across the dispatch 

curve and fuel types provides flexibility

Nuclear units continue to achieve

strong operational results and are 

well positioned for the future

Peach Bottom steam path retrofit

completed

Fossil fleet is suited for market

dynamics

CCGT achieved record output in 2012

Installed 400 MW new peaking

capacity in 2012

Financial/Economic Focus

O&M cost control programs have

delivered

Sites offering competitive advantage

suited for expansion

Regulatory Focus

Strong regulatory performance

Industry leadership in the changing

regulatory environment

PSEG Power delivered in 2012

51

Storm and

weather challenges

•

Superstorm Sandy

impacted

our generating sites

•

Warm winter put

pressure on demand

and pricing for both

electricity and gas

•

Hot summer weather

created challenging

operating

environment

Market

challenges

•

Unit outages and

transmission

outages resulted in

pressure on basis

•

Lower gas cost

impacted dark

spread pressuring

coal unit dispatch

•

Load impacted by

weather and

economy

Value

delivered

•

Cost control

•

Lower dispatch and fuel cost

•

Captured value through coal/gas

switching, unit flexibility

•

Improved unit availability

•

Coal & oil sales optimized inventory

•

Expedited return from storm outages,

restored margin opportunities

•

Optimized unit dispatch across fleet

during storm recovery

52

•

Low cost portfolio

•

Fuel flexibility

•

Assets near loads

•

Poised to benefit in real

time markets

•

Fleet will maintain

diversity and efficiency in

2016 after HEDD

•

Most sites suitable for

expansion

ISO

New

England

New Haven

Bridgeport

Bethlehem Energy Center

(Albany)

Conemaugh

Keystone

Peach Bottom

Bergen

Kearny

Essex

Sewaren

Edison

Linden

Mercer

Burlington

National Park

Hudson

Hope Creek

Salem

Yards Creek

New York ISO

PJM

PSEG Power has generating assets

in three competitive markets

53

PSEG Power Nuclear fleet is a critical element

of success

Hope Creek

•

Operated by PSEG Nuclear

•

PSEG Ownership: 100%

•

Technology: Boiling Water

Reactor

•

Total Capacity: 1,174 MW

•

License Expiration: 2046

•

Next Refueling

•

Spring 2015

Salem

Units 1 and 2

•

Operated by PSEG Nuclear

•

PSEG Ownership:  57%,

Exelon –

43%

•

Technology: Pressurized Water

Reactor

•

Total Capacity: 2,326 MW

•

Owned Capacity: 1,335 MW

•

License Expiration: 2036

and 2040

•

Next Refueling

•

Unit 1 –

Fall 2014

•

Unit 2 –

Spring 2014

Peach Bottom

Units 2 and 3

•

Operated by Exelon

•

PSEG Ownership: 50%

•

Technology: Boiling Water

Reactor

•

Total Capacity: 2,245 MW

•

Owned Capacity:

1,123 MW

•

License Expiration: 2033

and 2034

•

Next Refueling

•

Owned Capacity:  1,174 MW

•

Unit 2 –

Fall 2014

•

Unit 3 –

Fall 2015

54

PSEG Power Nuclear is core to the fleet and has

competitive advantages

•

Continued strong nuclear operations –

eight consecutive years of >90%

capacity factor

•

Significant earnings contributor

•

Top quartile of cost performance/MWh

•

One third new staff, recruitment of the

best new and experienced talent and

attractive training program

•

Developing Fukushima action plan

in response to NRC staff review

•

Peach Bottom extended power uprate,

130 MW Power’s share, scheduled in

service 2015/2016

•

Active and influential participation at

INPO, NEI, EPRI, USA Alliance

55

PSEG Power’s

Fossil Fleet

availability has

shown

steady

improvement

5%

6%

7%

8%

9%

10%

2008

2009

2010

2011

2012

EFORd

0%

1%

2%

3%

4%

2008

2009

2010

2011

2012

EFORp

EFORp

improvement

and availability

at peak demand

times has

resulted in

performance

payments in

each of the last

four years

EFORd

improvement

resulted in over

200 MW of

additional

capacity

available

56

PSEG Power

improvements

achieved in

combined cycle

fleet efficiency

7,400

7,500

7,600

7,700

7,800

2008

2009

2010

2011

2012

Combined Cycle Operating Heat Rate

Actions Taken to Create Value

•

Heat rate improvement

program

•

Operational Excellence

Model

•

Training programs

•

Unit testing initiative

•

Outage work to restore

efficiency

57

Superstorm Sandy affected the fleet;

when the load returned, Power was ready

Planned

Outages

Salem 2

Bergen 1

Hudson 2

Storm

Outages

Salem 1

Linden CC

Linden 5,6,7,8

Kearny

9,12,13,14

Essex

9,10,11,12

Sewaren

1,2,3,4

Salem 1

Linden 5,7

Kearny

13,14

Linden 6,8

Bergen 1

Salem 2

Kearny 12

All PSEG NJ

Generation

Hudson 2

Essex 9,10

Linden CC

Superstorm

Sandy

0

5

10

15

Total

28-

Oct

31-

Oct

5-

Nov

12-Nov

19-Nov

30

Nov

Dec

Jan

-

58

PSEG Power’s fleet is among the lowest emitting

in the industry

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

10,000

20,000

30,000

40,000

50,000

60,000

70,000

2006

2007

2008

2009

2010

2011

2012

Generation

NOx

•

Mercury reduced 80% across the timeframe above

•

Power is well positioned for HAPS

SO2

59

PSEG Power’s

focus on costs

has resulted in

moderate

increase in O&M

for six years

Cost control actions taken:

•

Coal assessment

•

CCGT material condition assessment

•

Contract renegotiation

•

Material management

•

Nuclear maintenance productivity study

•

Nuclear outage efficiency initiative

2008 to 2013 CAGR = 1.9%

Power O&M Expense*

* INCLUDES IMPACTS FROM STORM RECOVERY COSTS AND POTENTIAL RELATED INSURANCE PROCEEDS.     

E = ESTIMATE.

$0

$500

$1,000

$1,500

2008

2009

2010

2011

2012

2013E

60

PSEG Power is well positioned

for growth in

the fleet when market conditions dictate

Available locations

Our sites possess infrastructure advantages

•

Bergen

•

Burlington

•

Essex

•

Edison

•

Kearny

•

Hudson

•

Linden

•

Sewaren

•

Bridgeport Harbor

•

Electric Interconnection

•

Gas Pipeline Access

•

Sites/Space

•

Emissions

PSEG Power will maintain diversity and

efficiency after a realignment of the fleet in 2016

13,226 MW

11,200 MW

Fuel Diversity

52.5 TWh

52-54 TWh

Energy Produced

Objective

2012

2016E

E=ESTIMATE

Maintain fuel diversity

Maintain load serving

capability

Improve fleet heat rate

by 6%

Maintain low cost

structure

Environmental

improvement

61

PSEG Power is an established leader

within the industry

62

•

Board of Directors

•

National Nuclear Accrediting Board

•

Chair Communications Advisory

Committee

•

Board of Directors

•

Board of Directors Executive

Committee

•

Chair Emergency Preparedness

Working Group

•

Security Working Group

•

Fukushima Response Steering

Committee

•

Nuclear Strategic Issues Advisory

Committee Steering Group

•

Chairman Nuclear Power Counsel

•

Executive Committee Nuclear Power

Counsel

•

Vice Chair of the Executive Oversight

Committee

USA

Alliance

•

Chair

•

Various Committees

BWR Owners Group

PJM/NY/NE  ISO

INPO

NEI

EPRI

PSEG Power has added value with focus on

operational excellence

* EXCLUDES SANDY IMPACT.

63

3,622

Nuclear capacity (MW)

3,632

92%

Nuclear equivalent availability

93%

29.3

Nuclear generation (TWhrs)

29.8

55

Total generation (TWhrs)

53

3,157

CCGT capacity (MW)

3,176

12.1

CCGT generation (TWhrs)

16.2

8.9%

Fossil EFORd

6.3%*

87%

Fossil equivalent availability

90%

63

SO

2

(Ktons)

9

16

NO

x

(Ktons)

10

Power’s 2013 operating earnings

benefiting from locational value and operational efficiency

E= ESTIMATE

*SEE SLIDE A FOR ITEMS EXCLUDED FROM INCOME FROM CONTINUING OPERATIONS/NET INCOME TO RECONCILE TO

OPERATING EARNINGS.

$630 -

$685E

$644

PSEG Power Operating Earnings*

($ Millions)

64

PSEG POWER

ER&T

PSEG Power

ER&T strategy

DIVERSIFIED

ASSETS AND

FLEXIBLE DISPATCH

REGULATORY

ADVOCACY

MANAGING

RISKS AND

CREATING VALUE

Focused on

optimizing the value

of its asset portfolio

and providing

outstanding service

to our customers, 

while prudently

managing risk

ENGAGED

WORKFORCE

66

Diversified assets and flexible dispatch

High performing, base load nuclear assets

3,632 MW

Fuel advantaged, base load coal plants in PA

776 MW

Flexible combined cycle fleet

3,176 MW

Well leveraged intermediate & peaking assets       

5,642 MW

Integrated trading and dispatch capability around fleet

67

Fleet capacity has been advanced by:

Reduced O&M and increased start-up success

Trading acumen to execute fuel switching opportunities

Capturing new products opportunity with

minimal investment

Improved Heat Rate capability

68

Spark spread

replaces dark spread

as major value driver

•

Spark spread has risen above dark spread in PJM markets

•

Power’s gas units operating at record throughput

•

Gas operation provides much more operational flexibility

•

Enhances the ability of trading organization to capture volatility

69

2013 BGS Auction Results for PSE&G Zone

Capacity

Load shape

Transmission

Congestion

Ancillary services

Risk premium

Green

BGS sales account for about a third of our forward portfolio of hedges

3 Year Average

Round the Clock

PJM West

Forward Energy

Price

BGS PRICES REFLECT PSE&G ZONE; RESULTS FOR 2011-2013 ARE THE NEW BLENDED PRICES BEGINNING JUNE 1, 2013.

70

2009

2010

2011

2012

2013

$103.72

~ $47

$95.77

$94.30

~ $47

~ $48

~ $46

$83.88

~ $53

$92.18

$48

-

$50

$45

-

$47

$37

-

$38

$56

-

$58

$39

-

$40

71

•

3 Year forward BGS sales comprise smaller percentage of Power’s hedges

•

Other full requirement load deals help capture additional locational and load

shape premium

NOTE:  PERCENTAGES REPRESENT HEDGED VOLUMES IN PLACE AFTER BGS AUCTION.

Our hedging mix has changed with the

market but still captures the fleet’s locational advantage

50%

0%

50%

2008

44%

4%

52%

2010

35%

8%

57%

2012

BGS Sales to NJ

EDCs

Other Load

Other Hedges

72

Hedging strategy designed to protect gross margin

and leverage the portfolio

Dynamic Hedging on

Intermediate Coal, Combined

Cycle and Peaking:

Ratable Hedging on Base Load:

•

•

•

Oct-Dec

2013

2014

2015

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

3 year ratable hedge tactics

3 year PJM hedge of capacity

(not included in table)

Load following sales (such as BGS)

have strong correlation to our units

for hedging basis and load shaping

premium

•

Position fleet to take advantage

of market volatility

•

Gas and load-following fleet left

open until prompt year to

capture volatility

•

Use all trading products to

capture option value of assets

and benefit from market

dislocations

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.

PSEG’s locational advantage
and electric basis
Current plant
PS Zone On Peak Monthly Day Ahead locations Basis to PJM West Hub*
30 Bethlehem Energy Center (Albany)
25 Bridgeport New Haven
20
/MWH 15
$ 10 Hudson Yards Creek
5 Keystone Bergen Kearny
0
Mercer Essex
Jun-00 Dec-02 Jun-05 Dec-07 Jun-10 Dec-12 Conemaugh Linden
(5) Sewaren Peach Bottom Edison Hope Creek Burlington Salem National Park
Basis (PS Zone to PJM West) will continue to trend downward for forward sales
Volatility may remain significant in the prompt periods
Power maintains sufficient length to participate in upside volatility as well as a valuable 250MW transmission position into NYC
Basis will continue to have a positive impact on PSEG Power profitability
* A S O F O C T O B E R 3 1 , 2 0 1 3 . 73

74

PJM’s capacity market continues to recognize

locational value of our fleet

*PSEG Power’s cleared megawatts split between PS Zone and EMAAC.

2016/2017 RPM Auction Influenced By:

•

New Build and Higher Imports

•

Updated Transfer Capabilities

•

Updated Demand Curve

•

Environmental Retirements

•

Minimum Offer Price Rule

•

Lower Demand Response

2012 /

2013

2013 /

2014 /

2015

2015 /

2016

2016 /

2017

Power’s Average Price

$153

$244

$162

$167

$166

PS Zone

$219

EMAAC

$140

$245

$137

$167

$119

RTO

$16

$28

$126

$136

$59

Power’s Capacity (MW)

10,400

10,600

10,300

9,000

8,637*

2014

$/MW-Day

75

Reserve margins in PJM declining with retirements

Source: PJM TEAC, 8/8/2013

•

PJM Pending Deactivation Requests of

13,340 MW as of August 13, 2013

•

Approximately 5,000 MW of additional

owner announced retirements in PJM

through next auction

•

PJM forecasts a declining Reserve Margin

through 2017

Generation Deactivation Notifications

Forecast Reserve Margin (PJM June 2013)

0%

10%

15%

20%

25%

30%

6/1/2013

6/1/2014

6/1/2015

6/1/2016

6/1/2017

5%

Reserve Requirement

Existing + Expected New Generation

76

Regulatory Advocacy

Current Issues

•

PJM RPM rules for Capacity Markets

•

PJM Energy/Ancillary Services Market

•

New England Capacity Markets

•

New York Energy Markets

•

Trade Associations and ISO/RTO activities

ISSUE /POLICY

HOW ADDRESSED?

PJM

MOPR

Sufficiency/Exceptions before FERC and courts

DEMAND RESPONSE RULES

ANCILLARY/ENERGY

NYISO

CAPACITY

Jurisdictional

dispute

at

FERC

over

retirement

decisions;

Impact

of

PSC

approved Reliability Must Run arrangement on markets

NEPOOL

FCM

Market

design

issues

pending

at

Court

of

Appeals,

FERC

and

ISO-NE

stakeholder process

FEDERAL

Gas/Electric Coordination

Participation in ISO/FERC/Industry forums

Recent Rulings

•

FERC approval of Cost of New Entry (CONE)

•

PJM Area Regulation rules

•

EPA RICE/NESHAPS rules

•

FERC ruling imposing DR must offer requirement

in ISO-NE

Performance/eligibility/compensation

issues

before

courts,

FERC,

and

PJM stakeholder process

Regulation/Black-start modifications under consideration in PJM stakeholder

process before FERC

77

Diversified Assets &

Flexible Dispatch

Strong operational performance

Fuel switching

Ancillary services

Managing Risks & Creating Value

Consistent hedging strategy •

Full load requirements •

Capacity sales •Monetize optionality

Managing

Risks &

Creating Value

Supports competitive markets

Seeks a level playing field

Provides insight

Creates opportunity

MARKET

EXPECTATIONS

Diversified

Assets &

Flexible Dispatch

Regulatory

Advocacy

PSEG wholesale market strategy

built on a strong asset portfolio

Regulatory Advocacy

PSEG ENERGY

HOLDINGS

79

PSEG

Energy Holdings

strategy

Holdings’

priorities

are to manage

lease risks, sell

remaining non-

core assets and

grow the

renewables

portfolio

STREAMLINED

BUSINESS

AND REDUCED

FINANCIAL RISK

CAPITALIZE ON

RENEWABLE

OPPORTUNITIES

MAXIMIZING

THE VALUE OF

THE REMAINING

PORTFOLIO

DEVELOP AND EXECUTE

NEW BUSINESS

OPPORTUNITIES

80

Reducing Risk and

Monetizing Legacy Assets

PSEG Energy Holdings

Growth in

unregulated renewables

PSEG Solar Source

Growth by

leveraging knowledge

PSEG Long Island

Merchant Energy

Leveraged Leases

Regulated Energy

Leveraged Leases

Real Estate Leveraged

and Operating Leases

Legacy

Generation Assets

…MANAGING RISK FOR REMAINING LEGACY ASSETS AND INVESTING IN RENEWABLES

81

Queen Creek

Arizona (25 MW)

COD October 2012

Polycrystalline

-

single

axis

tracker 

Investment $75 million

20 year PPA with SRP

PSEG Solar Source has completed 69 MW and has

an additional 19 MW under construction

JEA

Florida (15 MW)

COD September 2010

Thin

film

panels

–

fixed

tilt

Investment $59 million

30 year PPA with JEA

Milford

Delaware (15 MW)

COD December 2012

Polycrystalline

-

fixed

tilt

Investment $47 million

20 year PPA with DEMEC

Hackettstown  (Mars)

New Jersey  (2 MW)

COD September 2009

Thin

film

panels

–

fixed

tilt

Investment $13 million

15 year PPA with Mars, Inc.

Wyandot

Ohio (12 MW)

COD May 2010

Thin

film

panels

–

fixed

tilt

Investment $45 million

20 year PPA with AEP

…

OPPORTUNITY FOR GROWTH IN UNREGULATED SOLAR

Badger I

Arizona (19 MW)

Expected COD Q4 2013

Polycrystalline

-

single

axis

tracker

Investment $51 million

30 year PPA with APS

82

PSEG Energy Holdings

Simplifying the

business and creating

growth opportunities in

renewables

Operational Excellence

Financial Strength                       

Disciplined Investment

STREAMLINED

BUSINESS

AND REDUCED

FINANCIAL RISK

CAPITALIZE ON

RENEWABLE

OPPORTUNITIES

MAXIMIZING

THE VALUE OF

THE REMAINING

PORTFOLIO

DEVELOP AND EXECUTE

NEW BUSINESS

OPPORTUNITIES

PSEG FINANCIAL

REVIEW

& OUTLOOK

84

Strong financial position to support our

business initiatives

Financial Position

Achieved Earnings Guidance

Stable Dividend and Opportunity for Growth

Strong Balance Sheet

Regulated Growth Opportunity without Equity Issuance

Solid Credit Ratings

O&M Controlled

Well Funded Pension

85

In 2012, PSE&G executed its capital program, Power

generated significant free cash flow and PSEG increased its

shareholder dividend

(1) PSE&G CASH FROM OPERATIONS ADJUSTS FOR SECURITIZATION PRINCIPAL REPAYMENTS OF ~$216 MILLION.

Power

Cash

from Ops

PSE&G

Cash

from Ops

(1)

PSE&G

Capital

Investment

Power

Capital

Investment

Cash

Other

Net

Cash

Flow

Shareholder

Dividend

Net Debt

Issuances

2012 Sources and Uses

86

Our capital investment options can result in as

much as $5.4B of utility growth investment through 2015

New

Transmission

~$0.2B

New

Distribution

~$1B

DATA AS OF JUNE 30, 2013. 

E = ESTIMATE

PSE&G

Growth

~$4.2B

PSE&G

Maintenance

Power

& Other

Potential Opportunities

Approved Programs

2013 –

2015E Capital Investment

~$6.3B

~$6.5B

~$7.5B

PSE&G

Growth

$5.4B

87

All scenarios can be financed without new

equity

Power

Cash   

from Ops

PSE&G

Cash 

from Ops

(1)

PSE&G

Capital

Investment

Power

Capital

Investment

Shareholder

Dividend

Net Debt

Issuances

Power

Cash

from Ops

PSE&G

Cash

from Ops

(1)

PSE&G

Capital

Investment

Power

Capital

Investment

Shareholder

Dividend

Net Debt

Issuances

(1)

PSE&G CASH FROM OPERATIONS ADJUSTS FOR SECURITIZATION PRINCIPAL REPAYMENTS OF ~$725M FROM 2013-2015     

EMP: ENERGY MASTER PLAN

2013 –

2015E

Other

Net Cash

Flow

2013 –

2015E

Other

Net

Cash

Flow

Approved Programs plus EMP, New

Transmission and New Distribution

Approved Programs

E = ESTIMATE

88

PSE&G’s capital spending drives regulated

earnings growth with a potential future rate base of up to

~$12.6B

2013 –

2015E Rate Base Growth

Potential New Opportunities

~$9B

~$2.4B

~$11.4B

Approved Programs 

2015E  Rate Base

3-yr CAGR: ~12%

New

Distribution

~$1B

New

Transmission

~$0.2B

~$11.6B

~$12.6B

DATA AS OF JUNE 30, 2013. 

E = ESTIMATE

2012 Rate Base

2015E  Rate Base

3-yr CAGR: ~8.2%

89

Power’s credit metrics are expected

to remain strong

EMP: ENERGY MASTER PLAN

Power FFO/Debt

2013 –

2015E Average

E = ESTIMATE

90

Using PSEG’s balance sheet strength

to finance growth in the regulated enterprise

without equity issuance

PSEG Total Capitalization

2012

2015E*

* E = ESTIMATE; INCLUDES THE FOLLOWING PROPOSED FILINGS: EE4A, ENERGY STRONG (ES) AND TRANSMISSION

HARDENING AND BPU APPROVED SPENDING ON SOLAR.

91

Our investment programs are affordable,

helped by the expiration of known charges by 2017, which

lower the average residential customer bill by ~ 8.7% based on

today’s current bill

PSE&G Securitization & NUG Impacts ($Millions)

PSE&G Securitization Impacts

2013

2014

2015

2016

2017

Revenues

439

445

386

0

0

Interest Expense

(46)

(30)

(11)

0

0

Amortization

(253)

(273)

(233)

0

0

Deferred Tax & Other

(140)

(142)

(142)

0

0

P&L Impact (GAAP view)

0

0

0

0

0

PSE&G Non–Utility  Generation

2013

2014

2015

2016

2017

Revenues*

157

167

141

49

0

Expenses

(157)

(167)

(141)

(49)

0

P&L Impact (GAAP view)

0

0

0

0

0

*NUG revenues reflect Feb 1, 2013 rates

Typical Current Average Residential

Customer Bill Impact

Securitization

~6.6%

Non-Utility

Generation

~2.1%

92

Modest O&M growth with Power increases from

CCGT maintenance cycles, due to high utilization rates

(1) POWER EXCLUDES IMPACTS FROM STORM RECOVERY COSTS AND POTENTIAL RELATED INSURANCE PROCEEDS NM = NOT MATERIAL. 

E = ESTIMATE.

PSEG O&M Expense

(1)

2013-2015E CAGR: ~2.2%

CAGR

Transmission

~0.4%

Distribution

~1.3%

Power

~2.9%

Holdings &

Other: N.M.

$0

$500

$1,000

$1,500

$2,000

$2,500

2013E

2014E

2015E

93

Pension contributions expected to decline with

well funded plan

2010

2011

2012

2013E

2014E

2015E

Funded Ratio

82%

84%

83%

>85%

>90%

>90%

Amended

Benefit

Plans

E = ESTIMATE

$0

$100

$200

$300

$400

$500

Pension Plan  Contributions

94

Opportunity for modest and sustainable

dividend increases consistent with stable regulated growth

and cash generation outlook at PSEG Power

PSE&G

EPS

$1.25

$1.14

E = ESTIMATE

$1.33

$1.37

$1.37

$1.44

$0.60

$0.80

$1.00

$1.20

$1.40

2009

2010

2011

2012

2013E

$1.42

Annual Dividend Per Share

95

PSEG Summary

•

Raised

2013

full-year

operating

earnings

guidance

to

$2.40

-

$2.55

per share --

based on financial results to date

•

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 future growth

APPENDIX

97

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 B FOR ITEMS EXCLUDED FROM INCOME FROM CONTINUING OPERATIONS/NET INCOME TO RECONCILE TO OPERATING EARNINGS.

98

$0.75

0.03

$0.76

(0.02)

0.00

0.25

0.50

0.75

1.00

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 B 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)

PSEG EPS Reconciliation –

Q3 2013

versus Q3 2012

99

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 B FOR ITEMS EXCLUDED FROM INCOME FROM CONTINUING OPERATIONS/NET INCOME TO RECONCILE TO OPERATING EARNINGS.

100

$2.03

0.11

0.03

$2.09

(0.08)

0.00

0.50

1.00

1.50

2.00

2.50

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 B 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 EPS Reconciliation –

YTD 2013

versus YTD 2012

101

PSE&G provides high reliability at below

average cost which creates superior value to customers

SAIDI

=

SYSTEM

AVERAGE

INTERRUPTION

DURATION

INDEX,

A

MEASURE

OF

AVERAGE OUTAGE DURATION FOR ALL CUSTOMERS

SERVED.

102

PSE&G prioritizes public safety

while maintaining value to customers

LEAK RESPONSE RATE = PERCENTAGE

OF

UTILITY

RESPONSES

TO

REPORTED

LEAKS WITHIN ONE HOUR.

103

Formula rates for transmission make

the process more predictable with contemporaneous returns

Transmission (Federal)

Distribution Base Rate Case (State)

Current ROE

•

11.68% base

•

12.93% with incentives on Susquehanna-Roseland

•

11.93% with incentives on Northeast Grid

•

10.3%

Volatility of Returns

•

Low –

prospective recovery with annual true-ups for

over/under recovery

•

Higher –

performance impacted positively/negatively

by cost management, weather, customer demands,

etc.

Process

•

Formula –

The rate template and specific elements like

ROE are predetermined with annual updates and true

ups

•

Litigated case with each element (depreciation, ROE,

O&M levels, Rate Base) scrutinized and settled

Intervenors

•

State consumer advocates usually participate

•

State consumer advocates

•

Large customers

•

Other parties affected by the case, e.g. Solar

Developers

Test Year

•

PSE&G

has

fully

forecasted

test

year

for

both

Capital and O&M

•

Historical

test

year

with

pro-forma

adjustments

for known and measurable items, e.g. wage

escalation

Time to resolve

•

Annual Formula updates are filed in October with

January 1 effective date

•

Typically settled within 12-15 months

104

New Jersey Board of Public Utilities (BPU)

•

The Board of Public Utilities consists of five commissioners appointed by

the Governor.  These appointees are confirmed by the NJ Senate for six-

year,

staggered

terms.

The

Governor

appoints

one

of

the

five

to

serve

as

Commission President. 

Currently, the commissioners are:

•

Robert M. Hanna, Commission President

•

Jeanne M. Fox

•

Joseph L. Fiordaliso

•

Mary-Anna Holden

•

Dianne Solomon

•

Stefanie Brand, Director of the N.J. Division of Rate Counsel

105

Slow economic recovery in NJ is constraining

growth in all market sectors

Modest residential growth limited

by housing market inactivity and

the slow economic recovery

Consumer spending is trending

with the slow economic recovery

and impacting growth in the

commercial sector

Industrial sales growth continues

to be constrained by slow

economic recovery

0.3%

0.4%

0.0%

0.5%

0.9%

0.7%

0.3%

0.7%

2013 -

2015

Projected

Sales

Growth

–

Gas*

2013 –

2015

Projected

Sales

Growth

–

Electric*

Residential

Commercial

Industrial

Total

Residential

Commercial

Industrial

Total

*WEATHER NORMALIZED ESTIMATED ANNUAL GROWTH PER YEAR OVER FORECAST PERIOD;

PROJECTED SALES GROWTH FOR 2013-2015 GAS INCLUDES ONLY FIRM SALES.

106

Key economic indicators forecast renewed

growth over the 2012 to 2015 timeframe

The New Jersey economy increased by 0.3%

annually from 2010 to 2012 and is

anticipated to grow 2.3% per year from

2012 to 2015

New Jersey total non-farm employment

increased by 0.6% annually from 2010 to

2012 and is expected to grow 1.4% per year

from 2012 to 2015

Real personal income in New Jersey

increased by 1.4% annually from 2010 to

2012 and is expected to increase 2.5% per

year from 2012 to 2015

Single family housing starts declined by

2.6% annually from 2010 to 2012 and are

expected to increase ~24% per year from

2012 to 2015

SOURCE: IHS GLOBAL INSIGHT FEBRUARY 2013 FORECAST.

NJ Total Employment

3,700

3,800

3,900

4,000

4,100

2010

2012

2015

NJ Real Gross State Product

$400,000

$420,000

$440,000

$460,000

$480,000

2010

2012

2015

NJ Real Personal Income

$360,000

$380,000

$400,000

$420,000

$440,000

$460,000

2010

2012

2015

NJ Single Family Housing Starts

0

5

10

15

20

2010

2012

2015

107

The full requirements BGS rate recognizes the

forward PJM capacity market price

Capacity

Price

per

RPM

Auction

for

PSEG

Zone

Capacity Price per BGS Tranche

2013-2014

250

$                        

Three Year Average ($/MW-day)

$195

2014-2015

170

$                        

MW per Tranche (varies by EDC)

108

2015-2016

166

$                        

Days per Year

365

Three

Year

Average

($/MW-day)

$

195

Capacity Cost per Tranche

$  7,712,637

MWh per Tranche

Energy MW per Tranche (varies by EDC)

108

Hours per Year

8,760

Load Factor (varies by EDC)

~37%

MWh per Tranche, approx.

350,000

Capacity Cost per MWh

22

$                             

108

PSEG Energy Holdings

Investment Portfolio

*

BOOK BALANCE EXCLUDING DEFERRED TAX ACCOUNTS.

**

EME AND ITS SUBSIDIARIES FILED CHAPTER 11 BANKRUPTCY ON 12/17/2012.

ON 10/18/2013,NRG ENERGY ANNOUNCED AN ACQUISITION OF EME ASSETS THAT WOULD CURE

ALL

MONETARY

DEFAULTS

AT

CLOSING

AND

PRESERVE

HOLDINGS’

ENTIRE

EQUITY

VALUE.

Equipment

Investment  Balance *           

at 9/30/13

($millions)

Solar  Source

Five

Operating

Solar

Facilities

:

NJ,

DE,

OH,

FL,

AZ

-

69

MW

$195

Merchant Energy Leases

GenOn

(REMA)

Keystone, Conemaugh & Shawville (PA)

3 coal-fired plants (1,162 equity MW)

$344

Edison Mission Energy (EME)**

Powerton & Joliet Generating Stations (IL)                     

2 coal-fired generating facilities (1,640 equity MW)

$218

Regulated Energy Leases

Merrill Creek

Reservoir in NJ  (PECO, MetEd, Delmarva Power & Light)

$189

Grand Gulf

Nuclear station in Mississippi (175 equity MW)

Real Estate Leveraged Leases

GM Renaissance Center; Wal-Marts; E-D (shopping) Centers

$ 67

Real Estate Operating Leases

Office

Towers,

Shopping

Centers

-

32

properties

$80

Generation Legacy Assets

Kalaeloa

(HI)  209 MW CC Oil,  GWF (in wind down stage) 

$ 98

Aircraft Leases and Other

Delta Airlines aircraft; Land & Receivables

$ 22

Total Holdings Investments

$1,213

109

PSEG Liquidity as of September 30, 2013

Expiration

Total

Available

Facility

Date

Facility

Usage

Liquidity

($Millions)

5-year Credit Facility (PSE&G)

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

$154

PSE&G ST Investment

$0

1

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

Total Liquidity Available

$4,278

2

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

Total Parent / Power Liquidity

$3,691

3

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

PSEG Money Pool ST Investment

110

Strong Balance Sheet supports our full capital

program without the need for equity

$Billions

Capitalization

Subsidiary Debt

(1)

2010

2011

2012

PSE&G

4.28

4.27

5.06

PSEG Power

3.45

2.75

2.34

Parent & Other

0.08

0.04

0.04

Total PSEG Debt

7.81

7.06

7.44

Subsidiary Equity

PSE&G

4.42

4.65

5.17

PSEG Power

5.03

5.44

5.44

Parent & Other

0.18

0.18

0.17

Total PSEG Equity

9.63

10.27

10.78

PSE&G Debt to Cap

49%

48%

49%

Power Debt to Cap

41%

34%

30%

PSEG Debt to Cap

45%

41%

41%

DEBT INCLUDES SHORT TERM DEBT (INCLUDING COMMERCIAL PAPER) AND EXCLUDES NON-RECOURSE AND SECURITIZATION DEBT

Items Excluded from Income from Continuing

Operations to Reconcile to Operating Earnings

2012

2011

2010

2009

2008

Earnings

Impact

($

Millions)

Operating Earnings

1,236

$     

1,389

$   

1,584

$   

1,567

$     

1,479

$   

Gain (Loss) on Nuclear Decommissioning Trust (NDT)

Fund Related Activity (PSEG Power)

52

50

46

9

(71)

Gain

(Loss)

on

Mark-to-Market

(MTM)

(a)

(PSEG

Power)

(10)

107

(1)

(11)

14

Lease Transaction Activity (Energy Holdings)

36

(173)

-

29

(490)

Storm O&M (PSEG Power)

(39)

-

-

-

-

Market Transition Charge Refund (PSE&G)

-

-

(72)

-

-

Gain (Loss) on Asset Sales and Impairments (Energy Holdings)

-

34

-

-

(13)

Income from Continuing Operations

1,275

$     

1,407

$   

1,557

$   

1,594

$     

919

$     

Discontinued Operations

-

96

7

(2)

270

Net Income

1,275

$     

1,503

$   

1,564

$   

1,592

$     

1,189

$   

Fully Diluted Average Shares Outstanding (in Millions)

507

507

507

507

508

Per Share Impact (Diluted)

Operating Earnings

2.44

$       

2.74

$    

3.12

$    

3.09

$      

2.91

$    

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

0.10

0.10

0.09

0.02

(0.14)

Gain

(Loss)

on

MTM

(a)

(PSEG Power)

(0.02)

0.21

-

(0.02)

0.03

Lease

Transaction

Activity

(Energy

Holdings)

0.07

(0.34)

-

0.05

(0.96)

Storm O&M (PSEG Power)

(0.08)

-

-

-

-

Market Transition Charge Refund (PSE&G)

-

-

(0.14)

-

-

Gain (Loss) on Asset Sales and Impairments (Energy Holdings)

-

0.06

-

-

(0.03)

Income from Continuing Operations

2.51

$       

2.77

$    

3.07

$    

3.14

$      

1.81

$    

Discontinued Operations

-

0.19

0.01

-

0.53

Net Income

2.51

$       

2.96

$    

3.08

$    

3.14

$      

2.34

$    

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

(Unaudited)

For the Year Ended

December 31,

PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED

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.

Items Excluded from Income from Continuing

Operations/Net Income to Reconcile to Operating Earnings

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.

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,

B