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) May 1, 2015

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

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

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

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

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, Public Service Electric and Gas Company (PSE&G) and PSEG Power LLC (Power). 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. PSE&G and Power each makes representations only as to itself and makes no other representations whatsoever as to any other company. The materials furnished as Exhibits 99 and 99.1 are available on the pseg.com website under the investor tab, or at http://investor.pseg.com.

Item 2.02 Results of Operations and Financial Condition

PSEG

On May 1, 2015, PSEG announced unaudited financial results for the three months ended March 31, 2015. A copy of the earnings release dated May 1, 2015 is furnished as Exhibit 99 to this Form 8-K.

Item 7.01 Regulation FD Disclosure

PSEG, PSE&G and Power

On May 1, 2015, PSEG conducted an earnings call regarding its results for the three months ended March 31, 2015. 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 May 1, 2015
Exhibit 99.1	Slideshow Presentation

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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/ Stuart J. Black
	STUART J. BLACK
	Vice President and Controller
	(Principal Accounting Officer)

Date: May 1, 2015

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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/ Stuart J. Black
	STUART J. BLACK
	Vice President and Controller
	(Principal Accounting Officer)

Date: May 1, 2015

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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/ Stuart J. Black
	STUART J. BLACK
	Vice President and Controller
	(Principal Accounting Officer)

Date: May 1, 2015

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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, Manager – Investor Relations	Phone: 973-430-6596

May 1, 2015

PSEG ANNOUNCES 2015 FIRST QUARTER RESULTS

$1.15 PER SHARE OF NET INCOME

STRONG OPERATIONS YIELD $1.04 PER SHARE OF OPERATING EARNINGS

Settlement Reached on Sandy-Related Insurance Claims

Company Maintains 2015 Operating Earnings Guidance of $2.75 - $2.95 Per Share

Public Service Enterprise Group (PSEG) reported today Net Income for the first quarter of 2015 of $586 million, or $1.15 per share as compared to Net Income of $386 million, or $0.76 per share, in the first quarter of 2014. Operating Earnings for the first quarter of 2015 were $529 million, or $1.04 per share, compared to Operating Earnings for the first quarter of 2014 of $515 million, or $1.01 per share.

“PSEG performed extremely well in the first quarter” said Ralph Izzo, chairman, president and chief executive officer. He went on to say “PSE&G is delivering on the promise of its expanded distribution and transmission investment program, while the reliable performance of PSEG Power’s generating assets and its gas market expertise during one of the coldest winters on record helped us deliver value for our customers.”

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 gains or losses associated with Nuclear Decommissioning Trust (NDT), 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 first quarter. See Attachment 10 for a complete list of items excluded from Net Income in the determination of Operating Earnings.

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PSEG CONSOLIDATED EARNINGS (unaudited)

First Quarter Comparative Results

2015 and 2014

	Income					Diluted Earnings
	($millions)					Per Share
	2015		2014			2015		2014
Operating Earnings	$	529	$	515		$	1.04	$	1.01
Reconciling Items		57		(129	)		0.11		(0.25	)
Net Income	$	586	$	386		$	1.15	$	0.76
				Avg. Shares			508M		508M

“A key contributor to our success is the dedication of our employees to meeting the needs of customers in a safe, reliable manner. The first quarter results represent a strong start to the year – operationally and financially – and positions 2015 as the third consecutive year of growth in PSEG’s operating earnings. At this time, we are maintaining our forecast of operating earnings for the full year of $2.75 – $2.95 per share,” said Izzo.

The following table outlines expectations for operating earnings in 2015 by subsidiary:

2015 Operating Earnings Guidance

($ millions, except EPS)

	2015E
PSE&G	$735 - $775
PSEG Power	$620 - $680
PSEG Enterprise/Other	$40 - $45
PSEG Operating Earnings	$1,395 - $1,500
Earnings Per Share	$2.75 - $2.95

Operating Earnings Review by Subsidiary

See Attachment 5 for detail regarding the quarter-over-quarter reconciliations for each of PSEG’s businesses.

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PSE&G

PSE&G reported operating earnings of $242 million ($0.47 per share) for the first quarter of 2015 compared with operating earnings of $214 million ($0.42 per share) for the first quarter of 2014.

PSE&G’s earnings for the first quarter reflect the benefits of the increase in revenue associated with the expansion of its capital program, colder than normal weather and the recovery of storm costs from the settlement of Sandy-related insurance claims.

Returns from PSE&G’s expanded investment in transmission added $0.03 per share to earnings in the quarter. The winter weather, which was significantly colder than normal and colder than a year ago, had a favorable impact on gas volume and demand. The impact of weather on gas usage was offset in the weather-normalization clause and did not impact earnings. Growth in customer demand for gas (normalized for weather) added $0.01 per share to earnings. Earnings comparisons also benefited from a quarter-over-quarter decline in operation and maintenance expense of $0.01 per share. PSE&G’s share of Sandy-related insurance settlement proceeds as well as a decline in storm-related repair costs from high levels experienced in 2014’s first quarter more than offset the impact on O&M from an increase in pension expense.

Economic indicators in the service area are modestly better than a year ago. Employment and housing indicators show signs of slow, but steady improvement. Electric demand has also shown modest improvement. On a weather-normalized basis, electric sales are estimated to have improved by 0.2% in the quarter. The improvement was led by 0.6% growth from the commercial and industrial sector which offset a decline in demand from residential customers. Gas deliveries continue to benefit from sustained low commodity prices and signals of recovery in the economy. Weather-normalized gas deliveries in the quarter grew 0.4% based on a 1% improvement in demand from the residential sector.

PSE&G extended bill credits through April 30, 2015 for its residential gas heating customers. The April bill credit, which cut the average April bill for the typical residential gas customer by about 32%, was an extension of the credits PSE&G provided for residential gas usage for the five months of November 2014 through March 2015.

PSE&G received approval in April 2015 from the NJ Board of Public Utilities (BPU) to increase its investment in energy efficiency. PSE&G will invest an additional $95 million over a three year period at an authorized return on equity of 9.75% on several popular programs that expand energy efficiency initiatives to hospitals, multi-family housing and government and non-profit facilities.

PSE&G’s capital program remains on schedule. PSE&G invested $599 million in the first quarter as part of its planned capital investment for 2015 of $2.6 billion in upgrades to the electric and gas distribution and transmission system.

The forecast of PSE&G’s operating earnings for 2015 remains unchanged at $735 - $775 million. Operating earnings for the full year will be heavily influenced by the recovery of costs associated with higher levels of capital spending.

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PSEG Power

PSEG Power reported operating earnings of $278 million ($0.55 per share) for the first quarter of 2015 and adjusted EBITDA of $626 million compared with operating earnings of $293 million ($0.58 per share) for the first quarter of 2014 and adjusted EBITDA of $651 million.

PSEG believes that the non-GAAP financial measure of “Adjusted EBITDA” is useful in evaluating Power’s operating performance because it provides investors with additional information to compare our business performance to other companies and understand performance trends.

Adjusted EBITDA excludes the same items as our Operating Earnings measure as well as income tax expense, interest expense, depreciation and amortization and major maintenance expense at Power’s fossil generation facilities. See Attachment 10 for a complete list of items excluded from Net Income in the determination of Adjusted EBITDA.

PSEG Power’s strong operating results in the first quarter reflect an improved availability of its gas-fired combined cycle fleet, higher prices on its hedged energy output, and the monetization of its gas supply which together helped offset the impact on earnings from a decline in capacity revenue and lower wholesale market prices for energy.

An increase in the average price received on energy hedges coupled with an increase in the percent of energy hedged in the first quarter relative to a year ago fully offset the impact of lower market prices on earnings. The expected decrease in average PJM capacity prices to $168/MW-day from $242/MW-day reduced Power’s quarter-over-quarter earnings by $0.09 per share. An increase in total gas send-out to commercial and industrial customers and strong margins on sales to the off-system market in response to the extreme weather conditions experienced throughout the quarter added $0.04 per share to quarter-over-quarter earnings. The absence of a charge in the prior year for the potential over-collection of revenues improved earnings comparisons by $0.03 per share. An increase in O&M expense reduced quarter-over-quarter earnings by $0.01 per share. An increase in costs associated with early site work at Hope Creek in preparation for its second quarter re-fueling outage and in pension expense more than offset a decline in maintenance expense at the fossil stations.

The flexibility and fuel diversity of Power’s fleet supported strong operations in the cold weather conditions experienced during the first quarter. Output of 14.5 TWh was in line with year-ago levels. The nuclear fleet operated at an average capacity factor of 95%, producing 7.8 TWh of output or 54% of generation, a slight decline from year-ago levels. Production from the combined cycle gas fleet (CCGT) increased to 3.9 TWh of generation, 27% of generation, from 3.4 TWh in the first quarter of 2014. An improvement in availability at Linden following work to increase the station’s capacity, and the availability of Bethlehem (NY) in the quarter, led to increased production from the CCGT fleet. The CCGT fleet’s operation was also aided by its successful use of oil as a back-up supply to

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maintain operations during critical periods. The coal stations performed in line with the prior period producing 2.5 TWh of energy, 17% of generation, as output from the peaking fleet declined in response to fewer days of extreme weather.

Power is maintaining its forecast of output for 2015 of 55 – 57 TWh, a 1% – 5% increase over 2014’s output of 54.2 TWh. Approximately 70 – 75% of anticipated production for the April – December period is hedged at an average price of $52 per MWh. For 2016, Power has hedged 50% - 55% of its forecast generation of 55 – 57 TWh at an average price of $51 per MWh; for 2017, Power has hedged 25 – 30% of its forecast generation of 55 – 57 TWh at an average price of $52 per MWh. The hedge data for 2015 and 2016 continues to assume volumes hedged under BGS represent 11 – 12 TWh per year.

Power’s operating earnings for 2015 are forecast at $620 - $680 million. The forecast of operating earnings represents adjusted EBITDA for the full year of $1,545 million - $1,645 million. Results for the remainder of the year will be heavily influenced by an increase in the average price of hedged energy and the expected decline in year-over-year capacity revenue.

PSEG Enterprise/Other

PSEG Enterprise/Other reported operating earnings of $9 million ($0.02 per share) for the first quarter of 2015 compared with operating earnings of $8 million ($0.01 per share) operating results for the first quarter of 2014. The difference in operating income is primarily the result of favorable interest and other income.

The forecast of PSEG Enterprise/Other full year operating earnings for 2015 remains $40 million - $45 million.

Sandy Insurance Settlement

PSEG reached a settlement with its insurers of claims for coverage of its Superstorm Sandy-related losses. The settlement provides for recovery of an additional $214 million over the $50 million of proceeds recovered over 2012-2013 for total recovery of $264 million, and the final settlement fully compensates PSEG for spending eligible for insurance recovery on Sandy-related repairs. The results for the first quarter of 2015 reflect the impact of a partial settlement reached with certain insurers for $159 million pre-tax. PSEG Power recorded $133 million in the first quarter for the settlement (but not included in Operating Earnings and Adjusted EBITDA) while PSE&G recorded $26 million. The remaining $54 million of insurance proceeds will be recognized in the second quarter’s financial results.

########

Forward Looking Statement

Certain of the matters discussed in this report about our 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

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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 transmission planning,

• 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 and enforcement 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 manage our energy obligations, available supply and risks,

• adverse outcomes of any legal, regulatory or other proceeding, settlement, investigation or claim applicable to us and/or the energy industry,

• any deterioration in our credit quality or the credit quality of our counterparties,

• 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 insurance coverage or recover proceeds of insurance with respect to such events,

• acts of terrorism, cybersecurity attacks or intrusions that could adversely impact our businesses,

• increases in competition in energy supply markets as well as for 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,

• changes in technology, such as distributed generation and micro grids, and greater reliance on these technologies, and

• changes in customer behaviors, including increases in energy efficiency, net-metering 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.

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Attachment 1

PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED

Operating Earnings and Per Share Results by Subsidiary

(Unaudited)

	Three Months Ended March 31,
	2015		2014
Earnings Results ($ Millions)
PSE&G	$	242	$	214
PSEG Power		278		293
PSEG Enterprise/Other		9		8
Operating Earnings	$	529	$	515
Reconciling Items(a)		57		(129	)
Net Income	$	586	$	386
Fully Diluted Average Shares Outstanding (in Millions)		508		508
Per Share Results (Diluted)
PSE&G	$	0.47	$	0.42
PSEG Power		0.55		0.58
PSEG Enterprise/Other		0.02		0.01
Operating Earnings	$	1.04	$	1.01
Reconciling Items(a)		0.11		(0.25	)
Net Income	$	1.15	$	0.76

(a) See Attachment 10 for details of items excluded from Net Income to compute Operating Earnings.

Attachment 2

PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED

Consolidating Statements of Operations

(Unaudited, $ Millions)

	Three Months Ended March 31, 2015
	PSEG			PSEG Enterprise/ Other (a)			PSE&G			PSEG Power
OPERATING REVENUES	$	3,135		$	(592	)	$	2,002		$	1,725
OPERATING EXPENSES
Energy Costs		1,094			(691	)		892			893
Operation and Maintenance		663			79			412			172
Depreciation and Amortization		330			7			247			76
Total Operating Expenses		2,087			(605	)		1,551			1,141
OPERATING INCOME		1,048			13			451			584
Income from Equity Method Investments		3			—			—			3
Other Income and (Deductions)		36			1			17			18
Other Than Temporary Impairments		(5	)		—			—			(5	)
Interest Expense		(98	)		2			(69	)		(31	)
INCOME BEFORE INCOME TAXES		984			16			399			569
Income Tax Benefit (Expense)		(398	)		(7	)		(157	)		(234	)
NET INCOME	$	586		$	9		$	242		$	335
OPERATING EARNINGS	$	529		$	9		$	242		$	278
Reconciling Items Excluded from Net Income (b)		57			—			—			57
NET INCOME	$	586		$	9		$	242		$	335
	Three Months Ended March 31, 2014
	PSEG			PSEG Enterprise/ Other (a)			PSE&G			PSEG Power
OPERATING REVENUES	$	3,223		$	(622	)	$	2,145		$	1,700
OPERATING EXPENSES
Energy Costs		1,356			(733	)		1,045			1,044
Operation and Maintenance		856			92			462			302
Depreciation and Amortization		306			7			227			72
Total Operating Expenses		2,518			(634	)		1,734			1,418
OPERATING INCOME		705			12			411			282
Income from Equity Method Investments		4			—			—			4
Other Income and (Deductions)		36			(1	)		14			23
Other Than Temporary Impairments		(2	)		—			—			(2	)
Interest Expense		(97	)		3			(68	)		(32	)
INCOME BEFORE INCOME TAXES		646			14			357			275
Income Tax Benefit (Expense)		(260	)		(6	)		(143	)		(111	)
NET INCOME	$	386		$	8		$	214		$	164
OPERATING EARNINGS	$	515		$	8		$	214		$	293
Reconciling Items Excluded from Net Income (b)		(129	)		—			—			(129	)
NET INCOME	$	386		$	8		$	214		$	164

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

(b) See Attachment 10 for details of items excluded from Net Income to compute Operating Earnings.

Attachment 3

PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED

Capitalization Schedule

(Unaudited, $ Millions)

	March 31, 2015			December 31, 2014
DEBT
Long-Term Debt	$	8,867		$	8,869
Securitization Debt		201			259
Project Level, Non-Recourse Debt		16			16
Total Debt		9,084			9,144
STOCKHOLDERS’ EQUITY
Common Stock		4,873			4,876
Treasury Stock		(662	)		(635	)
Retained Earnings		8,616			8,227
Accumulated Other Comprehensive Loss		(270	)		(283	)
Total Common Stockholders’ Equity		12,557			12,185
Noncontrolling Interests-Equity Investments		1			1
Total Equity		12,558			12,186
Total Capitalization	$	21,642		$	21,330

Attachment 4

PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited, $ Millions)

	Three Months Ended March 31,
	2015			2014
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income	$	586		$	386
Adjustments to Reconcile Net Income to Net Cash Flows From Operating Activities		1,093			730
NET CASH PROVIDED BY OPERATING ACTIVITIES		1,679			1,116
NET CASH USED IN INVESTING ACTIVITIES		(779	)		(629	)
NET CASH USED IN FINANCING ACTIVITIES		(294	)		(325	)
Net Change in Cash and Cash Equivalents		606			162
Cash and Cash Equivalents at Beginning of Period		402			493
Cash and Cash Equivalents at End of Period	$	1,008		$	655

Attachment 5

PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED

Quarter-over-Quarter EPS Reconciliation

March 31, 2015 vs. March 31, 2014

(Unaudited)

Attachment 6

PUBLIC SERVICE ELECTRIC & GAS COMPANY

Retail Sales and Revenues

(Unaudited)

March 31, 2015

Electric Sales and Revenues

Sales (millions kWh)	Three Months Ended		Change vs. 2014
Residential		3,347		1.1	%
Commercial & Industrial		6,935		0.9	%
Street Lighting		96		5.1	%
Interdepartmental		3		-1.4	%
Total		10,381		1.0	%
Revenue (in millions)
Residential	$	515		0.8	%
Commercial & Industrial		467		-3.9	%
Street Lighting		18		4.7	%
Other Operating Revenues*		157		25.4	%
Total	$	1,157		1.6	%
Weather Data	Three Months Ended		Change vs. 2014
THI Hours—Actual		0		0.0	%
THI Hours—Normal		29

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

Attachment 7

PUBLIC SERVICE ELECTRIC & GAS COMPANY

Retail Sales and Revenues

(Unaudited)

March 31, 2015

Gas Sold and Transported

Sales (millions therms)*	Three Months Ended		Change vs. 2014
Firm Sales
Residential Sales		876		5.7	%
Commercial & Industrial		542		5.0	%
Total Firm Sales		1,418		5.4	%
Non-Firm Sales
Commercial & Industrial		452		-17.8	%
Total Non-Firm Sales		452
Total Sales		1,870		-1.3	%
Revenue ($ millions)
Residential Sales—Firm	$	131		-50.6	%
Commercial & Industrial—Firm Sales		156		-10.4	%
Non-Firm Sales		12		-20.3	%
Other Operating Revenues**		44		-0.5	%
Total	$	343		-31.2	%
Gas Transported	$	502		-1.1	%
Weather Data	Three Months Ended		Change vs. 2014
Degree Days—Actual		3,138		5.7	%
Degree Days—Normal		2,509

* CSG rate included in non-firm sales

** Primarily Appliance Service.

Attachment 8

PSEG POWER LLC

Generation Measures*

(Unaudited)

	GWhr Breakdown
	Three Months Ended March 31,
	2015			2014
Nuclear—NJ		5,339			5,527
Nuclear—PA		2,493			2,522
Total Nuclear		7,832			8,049
Fossil—Coal/Natural Gas—NJ**		423			532
Fossil—Coal—PA		1,516			1,381
Fossil—Coal—CT		590			628
Total Coal		2,529			2,541
Fossil—Oil & Natural Gas—NJ		3,482			3,168
Fossil—Oil & Natural Gas—NY		603			567
Fossil—Oil & Natural Gas—CT		92			240
Total Oil & Natural Gas		4,177			3,975
		14,538			14,565
	% Generation by Fuel Type
	Three Months Ended March 31,
	2015			2014
Nuclear—NJ		37	%		38	%
Nuclear—PA		17	%		17	%
Total Nuclear		54	%		55	%
Fossil—Coal/Natural Gas—NJ**		3	%		4	%
Fossil—Coal—PA		10	%		9	%
Fossil—Coal—CT		4	%		4	%
Total Coal		17	%		17	%
Fossil—Oil & Natural Gas—NJ		24	%		22	%
Fossil—Oil & Natural Gas—NY		4	%		4	%
Fossil—Oil & Natural Gas—CT		1	%		2	%
Total Oil & Natural Gas		29	%		28	%
		100	%		100	%

* Excludes Solar and Kalaeloa

** Includes Pumped Storage. Pumped Storage accounted for <1% of total generation for the three months ended March 31, 2015 and 2014. Also includes natural gas fuel switching intervals.

Attachment 9

PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED

Statistical Measures

(Unaudited)

	Three Months Ended March 31,
	2015			2014
Weighted Average Common Shares Outstanding (millions)
Basic		506			506
Diluted		508			508
Stock Price at End of Period	$	41.92		$	38.14
Dividends Paid per Share of Common Stock	$	0.39		$	0.37
Dividend Payout Ratio*		55.9	%		54.0	%
Dividend Yield		3.7	%		3.9	%
Price/Earnings Ratio*		15.0			13.9
Rate of Return on Average Common Equity*		11.7	%		12.3	%
Book Value per Common Share	$	24.83		$	23.32
Market Price as a Percent of Book Value		169	%		164	%
Total Shareholder Return		2.2	%		20.3	%

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

Attachment 10

PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED

Consolidated Operating Earnings Reconciliation

Reconciling Items, net of tax	Three Months Ended March 31,						Year Ended December 31,
	2015			2014			2014			2013
	($ Millions, Unaudited)
Operating Earnings	$	529		$	515		$	1,400		$	1,309
Gain (Loss) on Nuclear Decommissioning Trust (NDT) Fund Related Activity (PSEG Power)		2			9			68			40
Gain (Loss) on Mark-to-Market (MTM)(a) (PSEG Power)		(20	)		(132	)		66			(74	)
Storm O&M, net of insurance recoveries (PSEG Power)		75			(6	)		(16	)		(32	)
Net Income	$	586		$	386		$	1,518		$	1,243
Fully Diluted Average Shares Outstanding (in Millions)		508			508			508			508
	($ Per Share Impact—Diluted, Unaudited)
Operating Earnings	$	1.04		$	1.01		$	2.76		$	2.58
Gain (Loss) on NDT Fund Related Activity (PSEG Power)		—			0.02			0.13			0.08
Gain (Loss) on MTM(a) (PSEG Power)		(0.04	)		(0.26	)		0.13			(0.14	)
Storm O&M, net of insurance recoveries (PSEG Power)		0.15			(0.01	)		(0.03	)		(0.07	)
Net Income	$	1.15		$	0.76		$	2.99		$	2.45

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

PSEG Power Adjusted EBITDA Reconcilation

Reconciling Items	Three Months Ended March 31,						Year Ended December 31,
	2015			2014			2014
	($ Millions, Unaudited)
Adjusted EBITDA	$	626		$	651		$	1,584
Fossil Major Maintenance, pre-tax		(49	)		(58	)		(144	)
Depreciation and Amortization, pre-tax (b)		(77	)		(73	)		(291	)
Interest Expense, pre-tax (b)		(31	)		(31	)		(120	)
Income Taxes (b)		(191	)		(196	)		(387	)
Operating Earnings	$	278		$	293		$	642
Gain (Loss) on NDT Fund Related Activity, pre-tax		7			19			138
Gain (Loss) on MTM, pre-tax (a)		(34	)		(223	)		111
Storm O&M, net of insurance recoveries, pre-tax		127			(10	)		(27	)
Income Taxes related to Operating Earnings reconciling items		(43	)		85			(104	)
Net Income	$	335		$	164		$	760

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

(b) Excludes amounts related to Operating Earnings reconciling items

EX-99.1

Public Service Enterprise Group

PSEG Earnings Conference Call

1

st

Quarter

2015

May 1, 2015

EXHIBIT 99.1

1

Forward-Looking Statement

Certain of the matters discussed in this report about our 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 transmission planning, 

•

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 and enforcement 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 manage our energy obligations, available supply and risks,

•

adverse outcomes of any legal, regulatory or other proceeding, settlement, investigation or claim applicable to us and/or the energy industry, 

•

any deterioration in our credit quality or the credit quality of our counterparties, 

•

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 insurance coverage or recover proceeds of insurance with respect to such events,

•

acts of terrorism, cybersecurity attacks or intrusions that could adversely impact our businesses,

•

increases in competition in energy supply markets as well as for 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, 

•

changes in technology, such as distributed generation and micro grids, and greater reliance on these technologies, and 

•

changes in customer behaviors, including increases in energy efficiency, net-metering 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. 

2

GAAP Disclaimer

PSEG presents Operating Earnings and Adjusted Earnings Before Interest, Taxes, Depreciation

and

Amortization

(EBITDA)

in

addition

to

its

Net

Income

reported

in

accordance

with

accounting

principles generally accepted in the United States (GAAP). Operating Earnings and Adjusted

EBITDA are non-GAAP financial measures that differ from Net Income. Operating Earnings

exclude 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 measures of Operating Earnings provides a consistent and comparable

measure of performance of its businesses to help shareholders understand performance trends.

PSEG

is

presenting

Adjusted

EBITDA

because

it

provides

investors

with

additional

information

to

compare our business performance to other companies and understand performance trends.

Adjusted EBITDA excludes the same items as our Operating Earnings measure as well as

income tax expense, interest expense, depreciation and amortization and major maintenance

expense

costs

at

Power’s

fossil

generation

facilities.

This

information

is

not

intended

to

be

viewed

as an alternative to GAAP information. The last two slides in this presentation (Slides A and B)

include

a

list

of

items

excluded

from

Net

Income

to

reconcile

to

Operating

Earnings

and

Adjusted

EBITDA with a reference to that slide included on each of the slides where the non-GAAP

information appears.

These

materials

and

other

financial

releases

can

be

found

on

the

pseg.com

website

under

the

investor

tab,

or

at

http://investor.pseg.com/

PSEG

2015 Q1 Review

Ralph Izzo

Chairman, President and Chief Executive Officer

*

*

*

*

*

*

*

*

*

*

4

Q1 Earnings Summary –

PSEG Delivers Strong Operating Results

$ millions (except EPS)

2015

2014

Operating Earnings

$  529

$  515

Reconciling Items, Net of Tax

57

(129)

Net Income

$  586

$  386

EPS from Operating Earnings*

$  1.04

$  1.01

Quarter ended March 31          

*

See

Slide

A

for

Items

excluded

from

Net

Income

to

reconcile

to

Operating

Earnings.

5

PSEG –

Q1 2015 Highlights

Strong Operating Earnings

Operating earnings of $1.04 per share vs. $1.01 per share in Q1 2014 

Power benefited from higher prices on its hedged output, monetization of its

gas supply and improved performance from CCGTs

Increased earnings contribution from PSE&G’s investment in transmission

Operational Excellence

PSEG Power CCGT units improved fleet availability; nuclear capacity factor at 95%

Diversity and location of Power’s fleet provided flexibility to participate in market

PSE&G maintained high system reliability during a record-setting cold winter

PSEG Disciplined Capital Investment

Increased

common

dividend

to

indicative

annual

rate

of

$1.56

per

share

BPU

approved

Energy

Efficiency

Extension

II

for

additional

$95

million

investment 

Transmission projects in construction –

on schedule and on budget

S-R expected to be fully energized in May (Hopatcong to Susquehanna)

Settlement reached on Superstorm Sandy-related insurance claims fully

compensates PSEG for repairs covered by our policies

6

$2.75 -

$2.95E

PSEG –

Maintaining 2015 Guidance

$2.58

*

See

Slide

A

for

Items

excluded

from

Net

Income

to

reconcile

to

Operating

Earnings.

E

=

Estimate.                                 

$2.76

2015 guidance reflects continued increased level of investment,

and assumes normal weather and unit operations

PSEG

2015 Q1 Operating Company Review

Caroline Dorsa

EVP and Chief Financial Officer

*

*

*

*

*

*

*

*

*

*

8

Q1 Operating Earnings by Subsidiary

Operating Earnings

Earnings per Share

$ millions (except EPS)

2015

2014

2015

2014

PSE&G

$  242

$  214

$  0.47

$  0.42

PSEG Power

278

293

0.55

0.58

PSEG Enterprise/Other

9

8

0.02

0.01

Operating Earnings*

$  529 

$  515 

$  1.04

$  1.01

Quarter ended March 31

*

See

Slide

A

for

Items

excluded

from

Net

Income

to

reconcile

to

Operating

Earnings.

9

$1.01

0.05

0.01

$1.04

(0.03)

0.00

0.10

0.20

0.30

0.40

0.50

0.60

0.70

0.80

0.90

1.00

1.10

PSEG EPS Reconciliation –

Q1 2015 versus Q1 2014

Q1 2015       

Operating

Earnings*

Q1 2014       

Operating

Earnings*

PSEG Power

PSE&G

PSEG

Enterprise/

Other

*

See

Slide

A

for

Items

excluded

from

Net

Income

to

reconcile

to

Operating

Earnings.

Capacity  (0.09)

Gas Send-Out  0.04

Higher Pension

Expense  (0.01)

Absence of

Charge 0.03

Transmission

Earnings  0.03

Gas Volume &

Demand  0.01

Storm Insurance

Recovery  0.01

Interest Income

and

PSEG

Long Island

PSE&G

2015 Q1 Review

*

*

*

*

*

*

*

*

*

*

11

PSE&G –

Q1 EPS Summary

$ millions (except EPS)

Q1 2015

Q1 2014

Variance

Operating Revenues

$  2,002

$  2,145

$  (143)

Operating Expenses

Energy Costs

892

1,045

(153)

Operation & Maintenance

412

462

(50)

Depreciation & Amortization

247

227

20

Total Operating Expenses

1,551

1,734

(183)

Operating Earnings/Net Income

$  242

$  214

$  28

EPS from Operating Earnings/Net Income

$  0.47

$  0.42

$  0.05

12

PSE&G EPS Reconciliation –

Q1 2015 versus Q1 2014

$0.42

0.04

0.01

$0.47

0.00

0.10

0.20

0.30

0.40

0.50

Transmission

Earnings  0.03

Gas Volume

& Demand  0.01

Storm Insurance

Recovery

Q1 2014       

Operating

Earnings*

Q1 2015       

Operating

Earnings*

* Operating Earnings is equal to Net Income.

13

PSE&G –

Q1 2015 Operating Highlights

Operations

BPU approved $95 million Energy Efficiency Extension II in April; investment over next 3 years

Gas

System

Modernization

Program

filed

with

the

BPU

in

February;

first

phase

proposes to spend $1.6 billion over 5 years to replace aging cast iron and unprotected steel pipes

PSE&G extended BGSS gas rate credits through April 2015; this winter’s total PSE&G bill credit

is ~$236, or a 32% savings for the average gas customer (Nov 2014-April 2015)

Susquehanna-Roseland transmission line expected fully in service for Summer 2015

Regulatory and Market

Environment

PSE&G invested ~$600 million in T&D upgrades during Q1 as part of its full-year, $2.6 billion

investment program

PSE&G operating earnings* for full-year 2015 are forecast at $735 million to $775 million

Financial

Coldest

Q1

in

over

45

years:

Heating

degree

days

were

5.7%

above

last

winter

and

25%

above

normal

Weather

normalized

electric

sales:

Slight

overall

improvement

of

0.2%,

led

by

the

commercial

and

industrial segment

Gas

deliveries

continue

to

benefit

from

low

commodity

prices

and

modest

economic

growth,

weather

adjusted

deliveries

grew

by

0.4%,

led

by

a

1%

advance

in

the

residential

segment

* Operating Earnings is equal to Net Income.

PSEG Power

2015 Q1 Review

*

*

*

*

*

*

*

*

*

*

15

PSEG Power –

Q1 Earnings Summary

$ millions (except EPS)

Q1 2015

Q1 2014

Variance

Operating Revenues

$  1,725

$  1,700

$  25

Operating Earnings

$  278

$  293

$  (15)

Reconciling Items, Net of Tax*

57

(129)

186

Net Income

$  335

$  164

$  171

EPS from Operating Earnings*

$  0.55

$  0.58

$  (0.03)

Adjusted EBITDA**

$  626

$  651

$  (25)

*

See

Slide

A

for

Items

excluded

from

Net

Income

to

reconcile

to

Operating

Earnings; Includes the financial impact from Mark-to-Market positions with forward delivery months.

** See Slide B for a reconciliation of Adjusted EBITDA to Operating Earnings and Net Income.   E = Estimate

16

$0.58

$0.55

(0.01)

0.00

0.10

0.20

0.30

0.40

0.50

0.60

0.70

(0.02)

Capacity  (0.09)

Gas

Send-Out  0.04

Absence of

Charge  0.03 

PSEG Power EPS Reconciliation –

Q1 2015 versus Q1 2014

Q1 2015       

Operating

Earnings*

Q1 2014       

Operating

Earnings*

Higher

Pension

Expense

* See Slide A for Items excluded from Net Income to reconcile to

Operating Earnings.

PSEG Power’s Q1 2015 and Full-Year 2015 Guidance for Adjusted

EBITDA

Three Months Ended

March 31,

Full-Year 2015

Guidance

($ in millions)

2015

2014

Low

High

Operating Earnings**

$278

$293

$620

$680

Add:

Fossil Major Maintenance, pre-tax

49

58

115

115

Depreciation & Amortization, pre-tax

77

73

305

305

Interest Expense, pre-tax

31

31

125

125

Income Taxes

191

196

380

420

Adjusted EBITDA

$626

$651

$1,545E

$1,645E

17

PSEG Power -

Adjusted EBITDA*

*    See Slide B for a reconciliation of Adjusted EBITDA to Operating Earnings and Net Income.   E = Estimate.

**  See Slide A for Items excluded from Net Income to reconcile to Operating Earnings; Includes the financial impact from Mark-to-Market positions with forward delivery months.

18

PSEG Power –

Generation Measures

8,049

7,832

3,975

4,177

2,529

2,541

0

7,500

15,000

2014

2015

Quarter ended March 31

Total Nuclear

Total Coal*

Oil & Natural Gas

Generation by Fuel (GWh)**

14,538

Quarter ended March 31

* Includes figures for Pumped Storage.  Also includes natural gas fuel switching intervals.    ** Excludes Solar and Kalaeloa

2014

2015

Combined

Cycle

PJM and NY

49%

55%

Coal*

NJ (Coal/Gas)

21%

17%

PA

83%

91%

CT

73%

68%

Nuclear

100%

95%

14,565

Fleet Capacity Factors (%)

19

PSEG Power –

Fuel Costs

Quarter ended March 31

($ millions)

2014

2015

Coal

$87

$82

Oil & Gas

365

247

Total Fossil

452

329

Nuclear

62

55

Total Fuel

Cost

$514

$384

Total

Generation

(GWh)

14,565

14,538

$ / MWh

35.29

26.41

PSEG Power –

Fuel Costs

20

PSEG Power –

Gross Margin Performance

$0

$15

$30

$45

$60

2013

2014

2015

$47

$48

Quarter ended March 31

Hedging profile captured returns amid lower price volatility than in Q1 2014

Q1 spot prices significantly lower across PJM, ISO-NE, and NYISO versus year ago

Capacity prices were lower year-over-year

Access to lower-cost Marcellus gas continues to benefit spark spreads

Q1 2015 Regional Performance

Region

Gross

Margin ($M)

Comment

PJM

$623

Higher prices on hedged output offset

lower wholesale market prices and a

decline in capacity revenue

New

England

$51

Hedging profile improved margins

offsetting lower market prices

New York

$13

Higher volumes with improved fuel

availability

PSEG Power Gross Margin ($/MWh)

$50

21

Hedging Update

Contracted Energy*

* Hedge percentages and prices as of March 31, 2015.  Revenues of full requirement load deals based on contract price, including renewable energy credits, ancillary, and transmission

components but excluding capacity.

Hedges include positions with MTM accounting treatment and options.

Apr-Dec

2015

2016

2017

Volume TWh

26

37

37

Base Load

% Hedged

100%

80-85%

40-45%

(Nuclear and Base Load Coal)

Price $/MWh

$52

$51

$52

Volume TWh

17

20

20

Intermediate Coal, Combined

% Hedged

30-35%

0%

0%

Cycle, Peaking

$52

--

--

Volume TWh

41-43

55-57

55-57

Total

% Hedged

70-75%

50-55%

25-30%

Price $/MWh

$52

$51

$52

Price $/MWh

22

PSEG Power –

Q1 Operating Highlights

Q1 output flat with Q1 2014 at 14.5 GWh

Nuclear fleet’s capacity factor at 95%

CCGT production up 16% to 3.9 TWh on improved availability at Linden

Operations

Regulatory and Market

Environment

Financial

PJM’s Capacity Performance (CP) proposal pending at FERC

FERC granted PJM request to postpone Reliability Pricing Model (RPM) auction for the

2018/2019 delivery year

Base load output in 2015 hedged at an average price of $52/MWh vs. 2014 average

hedge price of $48/MWh

2015 BGS load projected at 11-12 TWh

Bergen

and

Peach

Bottom

2

capacity

uprates

scheduled

to

add

96MW

for

Summer

2015

Power’s total debt as a percentage of capitalization at March 31 was 31%

Power’s operating earnings* for full-year 2015 are forecast at $620 million to $680 million,

and Adjusted EBITDA** at $1.55 billion to $1.65 billion

*

See

Slide

A

for

Items

excluded

from

Net

Income

to

reconcile

to

Operating

Earnings;

Includes

the

financial

impact

from

Mark-to-Market

positions

with

forward

delivery

months.

**

See

Slide

B

for

a

reconciliation

of

Adjusted

EBITDA

to

Operating

Earnings

and

Net

Income.

E

=

Estimate.

PSEG

*

*

*

*

*

*

*

*

*

*

*

24

PSEG Financial Highlights

Maintaining 2015 operating earnings guidance of $2.75 -

$2.95 per share

Focused on maintaining operating efficiency and customer reliability

PSE&G expected to contribute over 50% of 2015 operating earnings

Infrastructure Spend

PSE&G T&D spend for 2015 expected to be $2.6 billion

PSE&G received approval in April 2015 from the NJ Board of Public Utilities (BPU) to

invest an additional $95 million over a three-year period on Energy Efficiency programs

Utility’s Gas System Modernization Program filed with the BPU in February; first phase

proposes to spend $1.6 billion over 5 years to replace aging cast iron and unprotected

steel pipes

Power’s AGP and nuclear uprate programs ongoing

Financial position remains strong

Positive cash from Power and increasing cash flow from operations at PSE&G supports

dividend growth and funds capital spending program without the need to issue equity

Debt as a percentage of capitalization was 41% at March 31

Increased common dividend 5.4% to indicative annual rate of $1.56 per share

Increasing regulated earnings mix supports dividend growth

25

PSEG Sandy-related insurance settlement proceeds

($ millions, pre-tax)

Pre-2015

Q1 2015

Q2 2015E

Total

PSEG Power

$44

$133

TBD

TBD

PSE&G

6

26**

TBD

TBD

PSEG

$50*

$159

~$54***

~$264

*    PSE&G received $6 million of insurance settlement proceeds in Q4 2012.  Power received $19 million and  $25 million of

insurance settlement proceeds in Q4 2012 and Q2 2013, respectively.

**  PSE&G share of proceeds reduced O&M; Property, Plant and Equipment; and Regulatory Assets.

***The amounts to be recorded by PSEG Power and PSE&G will be determined in second quarter 2015.  TBD = To Be Determined.

26

PSEG 2015 Guidance for Operating Income –

by Subsidiary

and PSEG Power Adjusted EBITDA

$ millions (except EPS)

2015E

2014

PSE&G

$735 -

$775

$725

PSEG Power

$620 -

$680

$642

PSEG Enterprise/Other

$40 -

$45

$33

Operating Earnings*

$1,395 -

$1,500

$1,400

Earnings per Share

$2.75 -

$2.95E

$2.76

Anticipates Another Year of Growth in Operating Earnings

$ millions (except EPS)

2015E

2014

PSEG Power

$1,545 -

$1,645

$1,584

PSEG Power Adjusted EBITDA**

*   See Slide A for Items excluded from Net Income to reconcile to Operating Earnings; Includes the financial impact from Mark-to-Market positions with forward delivery months.

**  See Slide B for a reconciliation of Adjusted EBITDA to Operating Earnings and Net Income.   E = Estimate.

PSEG Liquidity as of March 31, 2015

27

Expiration

Total

Available

Company

Facility

Date

Facility

Usage

Liquidity

($Millions)

PSE&G

5-year Credit Facility

Mar-18

$600

(A,C)

$14

$586

5-Year Credit Facility (Power)

Apr-19

$1,600

$178

$1,422

5-Year Credit Facility (Power)

Mar-18

$1,000

(A,D)

$0

$1,000

5-Year Bilateral (Power)

Sep-15

$100

$0

$100

5-year Credit Facility (PSEG)

Apr-19

$500

$8

$492

5-year Credit Facility (PSEG)

Mar-18

$500

(A,B)

$0

$500

Total

$4,300

$200

$4,100

(A) In April 2015, expiration dates of these facilities were extended to April 2020.

$636

(B) PSEG facility will be reduced by $23 million in April 2016, and $12 million in March 2018.

PSE&G ST Investment

$316

(C) PSE&G facility will be reduced by $29 million in April 2016,

and $14 million in March 2018.

Total Liquidity Available

$5,052

Total Parent / Power Liquidity

$4,150

PSEG /

Power

PSEG Money Pool ST Investment

(D) Power facility will be reduced by $48 million in April 2016,

and $24 million in March 2018.

A

Items Excluded from Net Income to Reconcile to Operating Earnings

Please see Slide 2 for an explanation of PSEG’s use of Operating Earnings as a non-GAAP financial measure

and how it differs from Net Income.

2015

2014

2014

2013

Operating Earnings

529

$        

515

$     

1,400

$    

1,309

$    

Gain (Loss) on Nuclear Decommissioning Trust (NDT)

Fund Related Activity (PSEG Power)

2

9

68

40

Gain (Loss) on Mark-to-Market (MTM)

(a)

(PSEG Power)

(20)

(132)

66

(74)

Storm

O&M,

net

of

insurance

recoveries

(PSEG

Power)

75

(6)

(16)

(32)

Net Income

586

$        

386

$     

1,518

$    

1,243

$    

Fully Diluted Average Shares Outstanding (in Millions)

508

508

508

508

Operating Earnings

1.04

$       

1.01

$    

2.76

$      

2.58

$      

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

-

0.02

0.13

0.08

Gain (Loss) on MTM

(a)

(PSEG Power)

(0.04)

(0.26)

0.13

(0.14)

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

0.15

(0.01)

(0.03)

(0.07)

Net Income

1.15

$       

0.76

$    

2.99

$      

2.45

$      

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

($ Millions, Unaudited)

($ Per Share Impact -

Diluted, Unaudited)

PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED

Consolidated Operating Earnings Reconciliation

Reconciling Items, net of tax

Three Months Ended

Year Ended

March 31,

December 31,

B

Items Excluded from Net Income to Reconcile to Operating Earnings

and Adjusted EBITDA

Please see Slide 2 for an explanation of PSEG’s use of Operating Earnings and Adjusted EBITDA as non-GAAP

financial measures and how they differ from Net Income.

2015

2014

Adjusted EBITDA

626

$        

651

$     

Fossil Major Maintenance, pre-tax

(49)

(58)

Depreciation and Amortization, pre-tax

(b)

(77)

(73)

Interest Expense, pre-tax

(b)

(31)

(31)

Income Taxes

(b)

(191)

(196)

Operating Earnings

278

$        

293

$     

Gain (Loss) on NDT Fund Related Activity, pre-tax

7

19

Gain (Loss) on MTM, pre-tax

(a)

(34)

(223)

Storm O&M, net of insurance recoveries, pre-tax

127

(10)

Income Taxes related to Operating Earnings

(43)

85

Net Income

335

$        

164

$     

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

(b) Excludes amounts related to Operating Earnings reconciling items

($ Millions, Unaudited)

PSEG Power Adjusted EBITDA Reconcilation

Reconciling Items

Three Months Ended

March 31,

2014

1,584

$     

(144)

(291)

(120)

(387)

642

$     

138

111

(27)

(104)

760

$     

Year Ended

December 31,

reconciling items