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) April 29, 2016

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

Newark, New Jersey 07102

(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

Newark, New Jersey 07102

(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

(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 April 29, 2016, PSEG announced unaudited financial results for the three months ended March 31, 2016. A copy of the earnings release dated April 29, 2016 is furnished as Exhibit 99 to this Form 8-K.

Item 7.01 Regulation FD Disclosure

PSEG, PSE&G and Power

On April 29, 2016, PSEG conducted an earnings call regarding its results for the three months ended March 31, 2016. 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 April 29, 2016
Exhibit 99.1	Slideshow Presentation

2

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. The signature of the undersigned company shall be deemed to relate only to matters having reference to such company and any subsidiaries thereof.

PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED
(Registrant)
By:	/s/ Stuart J. Black
	STUART J. BLACK
	Vice President and Controller
	(Principal Accounting Officer)

Date: April 29, 2016

3

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. The signature of the undersigned company shall be deemed to relate only to matters having reference to such company and any subsidiaries thereof.

PUBLIC SERVICE ELECTRIC AND GAS COMPANY
(Registrant)
By:	/s/ Stuart J. Black
	STUART J. BLACK
	Vice President and Controller
	(Principal Accounting Officer)

Date: April 29, 2016

4

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. The signature of the undersigned company shall be deemed to relate only to matters having reference to such company and any subsidiaries thereof.

PSEG POWER LLC
(Registrant)
By:	/s/ Stuart J. Black
	STUART J. BLACK
	Vice President and Controller
	(Principal Accounting Officer)

Date: April 29, 2016

5

EX-99

EXHIBIT 99

Investor News NYSE: PEG

For further information, contact:

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

PSEG ANNOUNCES 2016 FIRST QUARTER RESULTS

$0.93 PER SHARE OF NET INCOME

Operating Earnings of $0.91 Per Share

Company Maintains 2016 Guidance of $2.80 - $3.00 Per Share

(April 29, 2016 – Newark, NJ) Public Service Enterprise Group (PSEG) reported today Net Income for the first quarter of 2016 of $471 million, or $0.93 per share as compared to Net Income of $586 million, or $1.15 per share, in the first quarter of 2015. Operating Earnings for the first quarter of 2016 were $463 million, or $0.91 per share, compared to Operating Earnings for the first quarter of 2015 of $529 million, or $1.04 per share.

“We delivered solid operations this quarter executing on our five-year $16 billion capital program,” said Ralph Izzo, chairman, president and chief executive officer. “We experienced extremes in weather conditions in the first quarter of 2016 compared to the first quarter of 2015 which hurt demand and margins. However, continued growth in investment and strong operations helped us withstand these short-term challenges as we focus on growing a reliable, efficient, clean energy infrastructure platform capable of meeting customer requirements.”

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/(losses) associated with Nuclear Decommissioning Trust (NDT), Mark-to-Market (MTM) accounting as well as 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.

PSEG CONSOLIDATED EARNINGS (unaudited)

First Quarter Comparative Results

2016 and 2015

	Income				Diluted Earnings
	($ millions)				Per Share
	2016		2015		2016		2015
Operating Earnings	$	463	$	529	$	0.91	$	1.04
Reconciling Items		8		57		0.02		0.11
Net Income	$	471	$	586	$	0.93	$	1.15
				Avg. Shares		508M		508M

Ralph Izzo went on to say, “We are maintaining operating earnings guidance for the full year of $2.80 - $3.00 per share. Our guidance assumes normal weather for the remainder of the year. As we move forward, the weather and market conditions, especially during the third quarter, will be important for both PSEG Power and PSE&G. Current market conditions and the absence of a winter require that we maintain our relentless focus on identifying efficiencies and maintaining strong operating performance.”

The following table outlines expectations for operating earnings in 2016 by subsidiary:

2016 Operating Earnings Guidance

($ millions, except EPS)

	2016 Estimate
PSE&G	$875 - $925
PSEG Power	$490 - $540
PSEG Enterprise/Other	$60 - $60
Operating Earnings	$1,425 - $1,525
Earnings Per Share	$2.80 - $3.00

Operating Earnings Review by Subsidiary

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

PSE&G

PSE&G reported operating earnings of $262 million ($0.52 per share) for the first quarter of 2016 compared with operating earnings of $242 million ($0.47 per share) for the first quarter of 2015.

PSE&G’s first quarter results reflect the impact of revenue growth associated with an expansion of its capital investment program which more than offset the effect of unfavorable weather comparisons on electric and gas demand.

Returns from PSE&G’s expanded investment in transmission added $0.04 per share to earnings in the quarter. First quarter also benefited from recovery on PSE&G’s investment in distribution under the Energy Strong program which improved quarter-over-quarter earnings comparisons by $0.01 per share.

Weather was warmer than normal during the first quarter of 2016 and significantly warmer than conditions experienced last year. The negative impact of the extreme differences in weather on gas demand and revenue quarter-over-quarter was largely offset by the gas weather-normalization clause. A decline in electric sales and revenue as a result of the extreme differences in weather reduced quarter-over-quarter earnings comparisons by $0.02 per share. An increase in O&M expense due to the absence of insurance recovery of storm costs received in the year-ago quarter was more than offset by lower taxes which together added $0.02 per share to quarter-over-quarter earnings.

Economic indicators continue to improve. Employment in New Jersey has increased for 28 consecutive months as the housing market has also experienced an improvement. However, weather-normalized electric sales are estimated to have declined 1.8% in the first quarter. Weather-normalized electric sales for the trailing twelve month period were flat for the period ended March 2016. In terms of weather-normalized gas demand, a 0.3% decline in sales for the first quarter was led by a 1.5% decline in heating demand from the residential sector, influenced by the large weather adjustment quarter over quarter. On a trailing 12 month basis, gas sales increased by 1.8%.

PSE&G’s capital program remains on schedule. PSE&G invested approximately $725 million in the first quarter as part of its planned capital investment for 2016 of $3.0 billion in upgrades to the electric and gas distribution and transmission system.

The forecast of PSE&G’s operating earnings for 2016 remains unchanged at $875 - $925 million.

PSEG Power

PSEG Power reported operating earnings of $184 million ($0.36 per share) for the first quarter of 2016 and adjusted EBITDA of $416 million compared with operating earnings of $278 million ($0.55 per share) for the first quarter of 2015 and adjusted EBITDA of $626 million. Net Income for the first quarter of 2016 was $192 million versus $335 million for the first quarter of 2015.

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 first quarter results were impacted by extremely mild weather conditions in comparison to the year-ago period. Significantly lower weather-related demand hurt sales comparisons and wholesale market prices for energy during the first quarter. Power’s results, in addition, reflect the impact of the known decline in capacity revenues and average prices on energy hedges. The decline in revenue was greater than a decline in quarter-over-quarter operating expenses.

A decline in capacity revenue associated with the retirement of peaking capacity in June 2015 reduced quarter-over-quarter earnings by $0.04 per share. A decline in output due to milder weather coupled with lower average prices on energy hedges reduced quarter-over-quarter earnings by $0.09 per share. A weather-related decline in total gas send-out to commercial and industrial customers and lower prices in the marketplace and a lack of volatility combined to reduce quarter-over-quarter earnings on gas sales by $0.12 per share. Lower O&M expense improved quarter-over-quarter earnings by $0.05 per share and a reduction in interest expense added $0.01 per share to earnings.

Output from Power’s fleet declined 9% in the quarter as a result of reduced demand and lower wholesale market energy prices. Output from the coal fleet during the first quarter declined to 1 TWh from 2.5 TWh in the year-ago quarter. Output from the combined cycle fleet declined 0.2 TWh to 3.7 TWh. The nuclear fleet, however, experienced an improvement in output of 0.6 TWh to 8.4 TWh operating at an average capacity factor of 99.7% in the quarter. The nuclear fleet’s performance benefited from an improvement in availability at Salem as well as an increase in capacity at Peach Bottom associated with completion of the extended power uprate work.

Power is reducing its forecast of output for 2016 to 52 – 54 TWh from its prior forecast of 54 – 56 TWh. The revised range incorporates the impact on output of the abnormally warm weather in the first quarter. The range also incorporates an anticipated extension of the Salem 1 refueling outage, which began on April 14, to inspect, repair and replace damaged baffle bolts within the reactor vessel, subject to the results of an ongoing inspection. Approximately 70% - 75% of anticipated production for the April – December period of 40 TWh is hedged at an average price of $49 per MWh. For 2017, Power has hedged 50% - 55% of its forecast generation of 54 – 56 TWh at an average price of $49 per MWh. For 2018, approximately 20% - 25% of forecast generation of 59 – 61 TWh is hedged at an average price of $49 per MWh. The hedge data for 2016 continues to assume BGS hedges represent 11 – 12 TWh.

Power’s operating earnings for 2016 are forecast at $490 - $540 million. The forecast of operating earnings and adjusted EBITDA for the full year of $1,320 million - $1,400 million remains unchanged.

PSEG Enterprise/Other

PSEG Enterprise/Other reported operating earnings of $17 million ($0.03 per share) for the first quarter of 2016 compared with operating earnings of $9 million ($0.02 per share) for the first quarter of 2015. The increase in operating earnings quarter-over-quarter reflects contractual payments associated with the operation of PSEG Long Island and certain tax items at PSEG Energy Holdings.

The forecast of PSEG Enterprise/Other full year operating earnings for 2016 remains unchanged at $60 million.

########

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 ongoing low pricing of the capacity and energy that we sell into wholesale electricity markets,

• adverse changes in energy industry law, policies and regulations, 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, including prudency reviews and disallowances,

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

• changes in federal and state environmental regulations and enforcement that could increase our costs or limit our operations,

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

• 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 or increase the cost 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,

• delays or unforeseen cost escalations in our construction and development activities, or the inability to recover the carrying amount of our assets,

• availability of capital and credit at commercially reasonable terms and conditions and our ability to meet cash needs,

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

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

• changes in customer behaviors, including increases in energy efficiency, net-metering and demand response,

• adverse performance of our decommissioning and defined benefit plan trust fund investments and changes in funding requirements,

• 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,

• delays in receipt of necessary permits and approvals for our construction and development activities,

• any inability to achieve, or continue to sustain, our expected levels of operating performance,

• changes in the cost of, or interruption in the supply of, fuel and other commodities necessary to the operation of our generating units,

• an extended economic recession,

• an inability to realize anticipated tax benefits or retain tax credits,

• challenges associated with recruitment and/or retention of a qualified workforce, and

• changes in the credit quality and the ability of lessees to meet their obligations under our domestic leveraged leases.

All of the forward-looking statements made in this report are qualified by these cautionary statements and we cannot assure you that the results or developments anticipated by management will be realized or even if realized, will have the expected consequences to, or effects on, us or our business prospects, financial condition or results of operations. Readers are cautioned not to place undue reliance on these forward-looking statements in making any investment decision. Forward-looking statements made in this report apply only as of the date of this report. While we may elect to update forward-looking statements from time to time, we specifically disclaim any obligation to do so, even if internal estimates change, unless otherwise required by applicable securities laws.

The forward-looking statements contained in this report are intended to qualify for the safe harbor provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.

Attachment 1

PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED

Operating Earnings and Per Share Results by Subsidiary

(Unaudited)

	Three Months Ended March 31,
	2016		2015
Earnings Results ($ Millions)
PSE&G	$	262	$	242
PSEG Power		184		278
PSEG Enterprise/Other		17		9
Operating Earnings	$	463	$	529
Reconciling Items(a)		8		57
Net Income	$	471	$	586
Fully Diluted Average Shares Outstanding (in Millions)		508		508
Per Share Results (Diluted)
PSE&G	$	0.52	$	0.47
PSEG Power		0.36		0.55
PSEG Enterprise/Other		0.03		0.02
Operating Earnings	$	0.91	$	1.04
Reconciling Items(a)		0.02		0.11
Net Income	$	0.93	$	1.15

(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, 2016
	PSEG			PSEG Enterprise/ Other (a)			PSE&G			PSEG Power
OPERATING REVENUES	$	2,616		$	(409	)	$	1,712		$	1,313
OPERATING EXPENSES
Energy Costs		836			(531	)		729			638
Operation and Maintenance		729			94			382			253
Depreciation and Amortization		224			6			139			79
Total Operating Expenses		1,789			(431	)		1,250			970
OPERATING INCOME		827			22			462			343
Income from Equity Method Investments		2			—			—			2
Other Income and (Deductions)		27			—			19			8
Other-Than-Temporary Impairments		(10	)		—			—			(10	)
Interest Expense		(92	)		(2	)		(68	)		(22	)
INCOME BEFORE INCOME TAXES		754			20			413			321
Income Tax Benefit (Expense)		(283	)		(3	)		(151	)		(129	)
NET INCOME	$	471		$	17		$	262		$	192
OPERATING EARNINGS	$	463		$	17		$	262		$	184
Reconciling Items Excluded from Net Income (b)		8			—			—			8
NET INCOME	$	471		$	17		$	262		$	192
	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

(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, 2016			December 31, 2015
DEBT
Long-Term Debt*	$	10,231		$	9,561
Project Level, Non-Recourse Debt		7			7
Total Debt		10,238			9,568
STOCKHOLDERS’ EQUITY
Common Stock		4,908			4,915
Treasury Stock		(702	)		(671	)
Retained Earnings		9,381			9,117
Accumulated Other Comprehensive Loss		(269	)		(295	)
Total Common Stockholders’ Equity		13,318			13,066
Noncontrolling Interests - Equity Investments		1			1
Total Equity		13,319			13,067
Total Capitalization	$	23,557		$	22,635

* Includes current portion of Long-Term Debt

Attachment 4

PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited, $ Millions)

	Three Months Ended March 31,
	2016			2015
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income	$	471		$	586
Adjustments to Reconcile Net Income to Net Cash Flows From Operating Activities		743			1,093
NET CASH PROVIDED BY OPERATING ACTIVITIES		1,214			1,679
NET CASH USED IN INVESTING ACTIVITIES		(1,081	)		(779	)
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES		65			(294	)
Net Change in Cash and Cash Equivalents		198			606
Cash and Cash Equivalents at Beginning of Period		394			402
Cash and Cash Equivalents at End of Period	$	592		$	1,008

Attachment 5

PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED

Quarter-over-Quarter EPS Reconciliation

March 31, 2016 vs. March 31, 2015

(Unaudited)

Attachment 6

PUBLIC SERVICE ELECTRIC & GAS COMPANY

Retail Sales and Revenues

(Unaudited)

March 31, 2016

Electric Sales and Revenues

	Three Months		Change vs.
	Ended		2015
Sales (Millions kWh)
Residential		3,001		-10.4	%
Commercial & Industrial		6,636		-4.3	%
Street Lighting		92		-3.8	%
Interdepartmental		3		-9.3	%
Total		9,732		-6.3	%
Revenue ($ Millions)
Residential	$	454		-11.9	%
Commercial & Industrial		357		-23.5	%
Street Lighting		17		-7.4	%
Other Operating Revenues*		166		5.6	%
Total	$	994		-14.2	%
	Three Months		Change vs.
	Ended		2015
Weather Data
THI Hours - Actual		69		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, 2016

Gas Sold and Transported

	Three Months		Change vs.
	Ended		2015
Sales (Millions therms)*
Firm Sales
Residential Sales		655		-25.2	%
Commercial & Industrial		426		-21.4	%
Total Firm Sales		1,081		-23.7	%
Non-Firm Sales
Commercial & Industrial		414		-8.4	%
Total Non-Firm Sales		414
Total Sales		1,495		-20.0	%
Revenue ($ Millions)
Residential Sales - Firm	$	123		-5.8	%
Commercial & Industrial - Firm Sales		86		-44.7	%
Non-Firm Sales		9		-29.6	%
Other Operating Revenues**		43		-1.2	%
Total	$	261		-23.8	%
Gas Transported	$	457		-9.0	%
	Three Months		Change vs.
	Ended		2015
Weather Data
Degree Days - Actual		2,282		-27.3	%
Degree Days - Normal		2,531

* 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,
	2016			2015
Nuclear - NJ		5,531			5,339
Nuclear - PA		2,888			2,493
Total Nuclear		8,419			7,832
Fossil - Coal/Natural Gas - NJ**		(19	)		423
Fossil - Coal - PA		991			1,516
Fossil - Coal - CT		56			590
Total Coal		1,028			2,529
Fossil - Oil & Natural Gas - NJ		2,695			3,482
Fossil - Oil & Natural Gas - NY		1,063			603
Fossil - Oil & Natural Gas - CT		(4	)		92
Total Oil & Natural Gas		3,754			4,177
		13,201			14,538
	% Generation by Fuel Type
	Three Months Ended March 31,
	2016			2015
Nuclear - NJ		42	%		37	%
Nuclear - PA		22	%		17	%
Total Nuclear		64	%		54	%
Fossil - Coal/Natural Gas - NJ**		0	%		3	%
Fossil - Coal - PA		8	%		10	%
Fossil - Coal - CT		0	%		4	%
Total Coal		8	%		17	%
Fossil - Oil & Natural Gas - NJ		20	%		24	%
Fossil - Oil & Natural Gas - NY		8	%		4	%
Fossil - Oil & Natural Gas - CT		0	%		1	%
Total Oil & Natural Gas		28	%		29	%
		100	%		100	%

* Excludes Solar and Kalaeloa

** Includes Pumped Storage. Pumped Storage accounted for <1% of total generation for the three months ended March 31, 2016 and 2015. Generation includes natural gas fuel switching intervals.

Attachment 9

PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED

Statistical Measures

(Unaudited)

	Three Months Ended March 31,
	2016			2015
Weighted Average Common Shares Outstanding (Millions)
Basic		505			506
Diluted		508			508
Stock Price at End of Period	$	47.14		$	41.92
Dividends Paid per Share of Common Stock	$	0.41		$	0.39
Dividend Payout Ratio*		59.0	%		55.9	%
Dividend Yield		3.5	%		3.7	%
Price/Earnings Ratio*		17.0			15.0
Rate of Return on Average Common Equity*		10.9	%		11.7	%
Book Value per Common Share	$	26.38		$	24.83
Market Price as a Percent of Book Value		179	%		169	%
Total Shareholder Return		21.6	%		2.2	%

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

Attachment 10

PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED

Consolidated Operating Earnings Reconciliation

	Three Months Ended March 31,						Year-Ended December 31,
Reconciling Items, net of tax	2016			2015			2015		2014
	($ Millions, Unaudited)
Operating Earnings	$	463		$	529		$	1,476	$	1,400
Gain (Loss) on Nuclear Decommissioning Trust (NDT) Fund Related Activity (PSEG Power)		(5	)		2			8		68
Gain (Loss) on Mark-to-Market (MTM)(a) (PSEG Power)		13			(20	)		93		66
Storm O&M, net of insurance recoveries (PSEG Power)		—			75			102		(16	)
Net Income	$	471		$	586		$	1,679	$	1,518
Fully Diluted Average Shares Outstanding (in Millions)		508			508			508		508
	($ Per Share Impact - Diluted, Unaudited)
Operating Earnings	$	0.91		$	1.04		$	2.91	$	2.76
Gain (Loss) on NDT Fund Related Activity (PSEG Power)		(0.01	)		—			0.01		0.13
Gain (Loss) on MTM(a) (PSEG Power)		0.03			(0.04	)		0.18		0.13
Storm O&M, net of insurance recoveries (PSEG Power)		—			0.15			0.20		(0.03	)
Net Income	$	0.93		$	1.15		$	3.30	$	2.99

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

PSEG Power Adjusted EBITDA Reconciliation

	Three Months Ended March 31,						Year-Ended December 31,
Reconciling Items	2016			2015			2015			2014
	($ Millions, Unaudited)
Adjusted EBITDA	$	416		$	626		$	1,563		$	1,584
Fossil Major Maintenance, pre-tax		(7	)		(49	)		(128	)		(144	)
Depreciation and Amortization, pre-tax (b)		(80	)		(77	)		(301	)		(291	)
Interest Expense, pre-tax (b)(c)		(22	)		(31	)		(120	)		(120	)
Income Taxes (b)		(123	)		(191	)		(361	)		(387	)
Operating Earnings	$	184		$	278		$	653		$	642
Gain (Loss) on NDT Fund Related Activity, pre-tax		(8	)		7			24			138
Gain (Loss) on MTM, pre-tax (a)		22			(34	)		157			111
Storm O&M, net of insurance recoveries, pre-tax		—			127			172			(27	)
Income Taxes related to Operating Earnings reconciling items		(6	)		(43	)		(150	)		(104	)
Net Income	$	192		$	335		$	856		$	760

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

(b) Excludes amounts related to Operating Earnings reconciling items.

(c) Net of capitalized interest.

EX-99.1

Public Service Enterprise Group

PSEG Earnings Conference Call

1

st

Quarter 2016

April 29, 2016

EXHIBIT 99.1

1

Forward-Looking Statements

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 ongoing low pricing of the capacity and energy that we sell into wholesale electricity markets,

•

adverse changes in energy industry law, policies and regulations, 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, including prudency reviews

and disallowances,

•

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

•

changes in federal and state environmental regulations and enforcement that could increase our costs or limit our operations,

•

adverse

outcomes

of

any

legal,

regulatory

or

other

proceeding,

settlement,

investigation

or

claim

applicable

to

us

and/or

the

energy

industry,

•

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 or increase the cost 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,

•

delays or unforeseen cost escalations in our construction and development activities, or the inability to recover the carrying amount of our assets,

•

availability of capital and credit at commercially reasonable terms and conditions and our ability to meet cash needs,

•

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

•

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

•

changes in customer behaviors, including increases in energy efficiency, net-metering and demand response,

•

adverse performance of our decommissioning and defined benefit plan trust fund investments and changes in funding requirements,

•

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,

•

delays in receipt of necessary permits and approvals for our construction and development activities,

•

any inability to achieve, or continue to sustain, our expected levels of operating performance,

•

changes in the cost of, or interruption in the supply of, fuel and other commodities necessary to the operation of our generating units,

•

an extended economic recession,

•

an inability to realize anticipated tax benefits or retain tax credits,

•

challenges associated with recruitment and/or retention of a qualified workforce, and

•

changes in the credit quality and the ability of lessees to meet their obligations under our domestic leveraged leases.

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 measure 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

2016 Q1 Review

Ralph Izzo

Chairman, President and Chief Executive Officer

4

Q1

Earnings

Summary

–

Solid

Operating

Performance,

Results

Impacted by Extreme Weather Comparisons 

$ Millions (except EPS)

2016

2015

Operating Earnings*

$  463

$  529

Reconciling Items, Net of Tax

8

57

Net Income

$  471

$  586

EPS from Operating Earnings*

$  0.91

$  1.04

Quarter ended March 31          

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

5

PSEG –

Q1 2016 Highlights

Solid Operating Earnings –

Maintaining Guidance for 2016

Operating Earnings* of $0.91 per share vs. $1.04 per share in Q1 2015 

Power results impacted by extremes in weather comparisons and low prices

PSE&G’s expanded investment in transmission and distribution drives improvement

in earnings

Operational Excellence

PSEG Power operations performed well in Q1: Nuclear output up 7.5%

on improvement in fleet capacity factor to 99.7%

CCGT units improved fleet availability

PSEG Disciplined Capital Investment

Increased common dividend 5.1% to indicative annual rate of $1.64 per share

Executing on our $16 billion capital program with ~75% directed toward PSE&G

infrastructure investments in reliability/resiliency/replacement programs

Construction commenced on Keys and Sewaren CCGTs for targeted commercial

operation in 2018

Power pursuing permits on new 485 MW CCGT plant at Bridgeport Harbor site

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

6

$2.80 -

$3.00E

Maintaining 2016 Earnings Guidance 

$2.76

* See

Slide

A

for

Items

excluded

from

Net

Income

to

reconcile

to

Operating

Earnings.

E

=

Estimate.

$2.91

Guidance assumes normal weather and unit operations

2014

2015

2016 Operating Earnings* Guidance

PSEG

2016 Q1 Operating Company Review

Dan Cregg

EVP and Chief Financial Officer

8

Q1 Operating Earnings by Subsidiary

$ Millions (except EPS)

Operating Earnings

Earnings per Share

2016

2015

2016

2015

PSE&G

$  262

$  242

$  0.52

$  0.47

PSEG Power

184

278

0.36

0.55

PSEG Enterprise/Other

17

9

0.03

0.02

Operating Earnings*

$  463 

$  529 

$  0.91

$  1.04

Quarter ended March 31

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

9

PSEG EPS Reconciliation –

Q1 2016 versus Q1 2015

Q1 2016       

Operating

Earnings*

Q1 2015       

Operating

Earnings*

PSEG Power

PSE&G

PSEG

Enterprise/

Other

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

Transmission

Earnings  0.04

Energy Strong

Recovery  0.01

Weather  (0.02)

Distribution O&M,

Taxes & Other  0.02

PSEG

Long Island

Taxes

Lower Gas Send-Out/

Fixed Cost Recovery (0.12)

Re-contracting and Lower

Volume  (0.09)

Lower Capacity  (0.04)

O&M  0.05

Lower Interest

& Other  0.01

$1.04

0.05

0.01

$0.91

(0.19)

$0.00

$0.20

$0.40

$0.60

$0.80

$1.00

$1.20

PSE&G

2016 Q1 Review

11

PSE&G –

Q1 EPS Summary

$ Millions (except EPS)

Q1 2016

Q1 2015

Variance

Operating Revenues

$  1,712

$  2,002

$  (290)

Operating Expenses

Energy Costs

729

892

(163)

Operation & Maintenance

382

412

(30)

Depreciation & Amortization

139

247

(108)

Total Operating Expenses

1,250

1,551

(301)

Operating Earnings/Net Income

$  262

$  242

20

EPS from Operating Earnings/Net Income

$  0.52

$  0.47

$  0.05

12

PSE&G EPS Reconciliation –

Q1 2016 versus Q1 2015

Transmission

Earnings  0.04

Energy Strong

Recovery  0.01

Weather  (0.02)

Distribution O&M,

Taxes & Other

Q1 2015       

Operating

Earnings*

Q1 2016       

Operating

Earnings*

* Operating Earnings is equal to Net Income.

$0.47

0.03

0.02

$0.52

$0.00

$0.20

$0.40

$0.60

13

PSE&G –

Monthly Heating Degree Days

971

800

511

1,122

1,169

847

993

856

682

0

250

500

750

1000

1250

2016

2015

Normal

January

February

March

Q1 2016 Winter weather, as defined by heating degree days, was ~27% warmer

than Q1 2015 (the coldest winter in 45 years) and ~10% warmer than normal

Q1 2016 vs. Q1 2015 vs. Q1 Normal

Source:  New Jersey State Climatologist.

2015 –

2018E Rate Base

CAGR Growth of ~10%

Distribution

Transmission

PSE&G’s spending drives high single-digit growth

in rate base through 2020 with known investments

~$13.4B

~$17.7B

~$7.7B

~$5.7B

~$1.8B

~$10.2B

~$2.7B

~$9.3B

Rate

Base

Growth

2015

Rate Base

Potential

Upside

Potential

2020E

Rate

Base

Approved

2020E

Rate

Base

~$1.6B

~$9.3B

~$8.4B

~$19.5B

~$1.6B

~$21.1B

2015 –

2020E Rate Base

CAGR Growth of ~8%

Rate Base

Growth

2015 –

2020E Potential Rate

Base CAGR Growth of ~10%

~$4.3B

~$21.1B

Transmission 

~52%

Transmission

~43%

Approved

2018E

Rate

Base

14

Continued identification of investment opportunities

focused on improving reliability for our customers

2016-2020E PSE&G Capital Spending

E = ESTIMATE.   DATA AS OF MARCH 2016

15

16

PSE&G –

Q1 2016 Operating Highlights

Implemented annual increase in transmission revenue of $146 million in January 2016

Energy Strong programs continue on-schedule

GSMP investment program beginning

PSE&G invested ~$725 million during Q1 as part of its full-year, $3 billion investment program to

upgrade the electric and gas transmission and distribution system

PSE&G issued $850 million of Medium Term Notes consisting of $300 million of 5-year notes at 1.9%

and $550 million of 30 year notes at 3.8%, and retired $171 million of 6.75% long-term debt at maturity

PSE&G Operating Earnings* forecast for full-year 2016 is unchanged at $875 million to $925 million

Financial

Q1

2016

was

the

5

th

warmest

in

our

records

vs.

Q1

2015

–

the

coldest

winter

in

45

years

Heating degree days were 27% below Q1 2015 and 10% below normal

Weather normalized electric sales were lower by 1.8% for Q1 but flat on a trailing 12 month basis

Weather normalized gas sales were lower by 0.3% for the quarter, led by a 1.5% decline in heating

demand from residential segment (influenced by large weather adjustment quarter over quarter);

For the trailing 12 months, gas sales have increased by 1.8%

O&M remains well controlled

* Operating Earnings is equal to Net Income.

Regulatory and Market

Environment

Operations

PSEG Power

2016 Q1 Review

18

PSEG Power –

Q1 Earnings Summary

$ Millions (except EPS)

Q1 2016

Q1 2015

Variance

Operating Revenues

$  1,313

$  1,725

$  (412)

Operating Earnings*

$  184

$  278

$  (94)

Reconciling Items, Net of Tax*

8

57

(49)

Net Income

$  192

$  335

$  (143)

EPS from Operating Earnings*

$  0.36

$  0.55

$  (0.19)

Adjusted EBITDA**

$  416

$  626

$ (210)

*   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.

19

Lower Gas Send-Out and

Fixed Cost Recovery (0.12)

Re-Contracting and Lower

Volume (0.09)

Capacity  (0.04)

PSEG Power EPS Reconciliation –

Q1 2016 versus Q1 2015

Q1 2016       

Operating

Earnings*

Q1 2015       

Operating

Earnings*

O&M  0.05

Lower Interest

and Other 0.01

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

$0.55

0.06

$0.36

$0.00

$0.25

$0.50

$0.75

(0.25)

PSEG Power’s Q1 2016 and Full-Year 2016 Guidance for Adjusted

EBITDA

Three

Months Ended

March 31,

Full-Year 2016

Guidance

2016

2015

Low

High

$184

$278

$490

$540

Fossil Major Maintenance, pre-tax

7

49

80

80

Depreciation & Amortization, pre-tax

80

77

340

340

Interest Expense, pre-tax***

22

31

80

80

Income Taxes

123

191

330

360

$416

$626

$1,320E

$1,400E

20

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.

***  Net of capitalized interest.

Operating Earnings**

($ Millions)

Adjusted EBITDA*

Add:

21

PSEG Power –

Generation Measures

7,832

8,419

4,177

3,754

1,028

2,529

0

7,500

15,000

2015

2016

Quarter ended March 31

Total Nuclear

Total Coal*

Oil & Natural Gas

Generation by Fuel (GWh)**

13,201

Quarter ended March 31

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

2015

2016

Combined

Cycle

PJM and NY

55%

52%

Coal*

NJ (Coal/Gas)

17%

0.4%

PA

91%

59%

CT

68%

7%

Nuclear

95%

99.7%

14,538

Fleet Capacity Factors (%)

22

PSEG Power –

Fuel Costs

Quarter ended March 31

($ Millions)

2015

2016

Coal

$82

$27

Oil & Gas

247

66

Total Fossil

329

93

Nuclear

55

58

Total Fuel

Cost

$384

$151

Total

Generation

(GWh)

14,538

13,201

$ / MWh

26.41

11.44

PSEG Power –

Fuel Costs

23

PSEG Power –

Gross Margin Performance

$47

$44

Quarter ended March 31

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

driven by abnormally warm weather and related lack of demand

Capacity revenue affected by HEDD retirements in Q2 2015

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

Q1 2016 Regional Performance

Region

Gross

Margin ($M)

Comment

PJM

$515

Lower prices on hedged output

combined with lower wholesale

market prices and a decline in

capacity revenue from HEDD

retirements

New

England

$51

Hedging profile improved margins

offsetting lower market prices

New York

$12

Higher volumes with improved fuel

availability

PSEG Power Gross Margin ($/MWh)

$50

$0

$15

$30

$45

$60

2014

2015

2016

24

Hedging Update

Contracted Energy*

* Hedge percentages and prices as of March 31, 2016.  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

2016

2017

2018

Volume TWh

26

36

36

Base Load

% Hedged

100%

75-80%

35-40%

(Nuclear and Base Load Coal)

Price $/MWh

$49

$49

$49

Volume TWh

14

19

24

Intermediate Coal, Combined

% Hedged

25-30%

0%

0%

Cycle, Peaking

Price $/MWh

$49

--

--

Volume TWh

39-41

54-56

59-61

Total

% Hedged

70-75%

50-55%

20-25%

Price $/MWh

$49

$49

$49

25

PSEG Power –

Q1 Operating Highlights

Q1 output down 9.2% to 13.2 GWh on warm winter weather and lower demand vs Q1 2015

Strong nuclear performance: GWh production up 7.5% resulting in a fleet capacity

factor of 99.7%

CCGT availability remains strong; production down 5% on lower demand

Operations

Regulatory and Market

Environment

Financial

U.S. Supreme Court unanimously upheld lower court ruling against Maryland subsidized

generation law and subsequently dismissed the New Jersey LCAPP case

Base load output in 2016 hedged at an average price of $49/MWh vs 2015 average

hedge price of $52/MWh

2016 BGS load projection remains at 11-12 TWh

Power’s total debt as a percentage of capitalization at March 31 was 27%

Power’s

2016

Operating

Earnings*

guidance

range

is

$490

million to

$540

million;

Adjusted

EBITDA** guidance for 2016 is $1.32 billion to $1.40 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

27

PSEG Financial Highlights

Maintaining 2016 Operating Earnings* guidance of $2.80 -

$3.00 per share

Focused on maintaining operating efficiency and customer reliability

Salem Q2 refueling outage extended to replace and repair baffle bolts in reactor vessel

PSE&G expected to contribute over 60% of 2016 Operating Earnings*

Infrastructure Spend

PSE&G T&D spend for 2016 expected to be $3 billion

Power has begun construction of its CCGT units in Maryland and New Jersey

Financial position remains strong

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

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

Debt as a percentage of capitalization was 44% at March 31

Increased common dividend 5.1% to indicative annual rate of $1.64 per share

Increasing regulated earnings mix supports opportunity for dividend growth

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

28

PSEG 2016 Operating Earnings Guidance -

By Subsidiary

$ Millions (except EPS)

2016E

2015

PSE&G

$875 -

$925

$787

PSEG Power

$490 -

$540

$653

PSEG Enterprise/Other

$60 -

$60

$36

Operating Earnings*

$1,425 -

$1,525

$1,476

Earnings per Share

$2.80 -

$3.00E

$2.91

*/**See

Slide

A

for

Items

excluded

from

Net

Income

to

reconcile

to

Operating

Earnings

and

Slide

B

for

Items

excluded

from

Net

Income

to

reconcile

to

Operating Earnings and Adjusted EBITDA. See Slide 20 for a reconciliation of  Operating Earnings and Adjusted EBITDA for 2016E.   E = Estimate. 

Segment Earnings Guidance and Prior Results

$ Millions

2016E

2015

PSEG Power

$1,320 -

$1,400

$1,563

PSEG Power Adjusted EBITDA**

PSEG Liquidity as of March 31, 2016

29

Expiration

Total

Available

Company

Facility

Date

Facility

Usage

Liquidity

($ Millions)

PSE&G

5-year Credit Facility

Apr-20

$629

(A)

$14

$615

PSEG Money Pool

5-Year Credit Facility (Power)

Apr-19

$1,600

$202

$1,398

5-Year Credit Facility (Power)

Apr-20

$1,000

(B)

$9

$991

5-year Credit Facility (PSEG)

Apr-19

$500

$10

$490

5-year Credit Facility (PSEG)

Apr-20

$524

(C)

$12

$512

Total Money Pool

$3,624

$233

$3,391

Total

$4,253

$247

$4,006

$0

(B) Power facility will be reduced by $48 million in April 2016, and $24 million in March 2018.

PSE&G ST Investment

$521

Total Liquidity Available

$4,527

PSEG / Power

(A) PSE&G facility will be reduced by $29 million in April 2016, and $14 million in March 2018;

facility was increased by $29 million in March 2016 in anticipation of the April expiration.

PSEG Money Pool ST Investment

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

facility was increased by $24 million in March 2016 in anticipation of the April expiration.

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.

2016

2015

2015

2014

Operating Earnings

463

$        

529

$     

1,476

$     

1,400

$   

Gain (Loss) on Nuclear Decommissioning Trust (NDT)

Fund Related Activity (PSEG Power)

(5)

2

8

68

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

(a)

(PSEG Power)

13

(20)

93

66

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

-

75

102

(16)

Net Income

471

$        

586

$     

1,679

$     

1,518

$   

Fully Diluted Average Shares Outstanding (in Millions)

508

508

508

508

Operating Earnings

0.91

$       

1.04

$    

2.91

$       

2.76

$    

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

(0.01)

-

0.01

0.13

Gain (Loss) on MTM

(a)

(PSEG Power)

0.03

(0.04)

0.18

0.13

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

-

0.15

0.20

(0.03)

Net Income

0.93

$       

1.15

$    

3.30

$       

2.99

$    

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

($ Millions, Unaudited)

($ Per Share Impact -

Diluted, Unaudited)

PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED

Reconciling Items, net of tax

Three Months Ended

Consolidated Operating Earnings Reconciliation

Year-Ended

March 31,

December 31,

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.

B

2016

2015

2015

2014

Adjusted EBITDA

416

$        

626

$     

1,563

$     

1,584

$   

Fossil Major Maintenance, pre-tax

(7)

(49)

(128)

(144)

Depreciation and Amortization, pre-tax

(b)

(80)

(77)

(301)

(291)

Interest Expense, pre-tax

(b)(c)

(22)

(31)

(120)

(120)

Income Taxes

(b)

(123)

(191)

(361)

(387)

Operating Earnings

184

$        

278

$     

653

$        

642

$     

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

(8)

7

24

138

Gain (Loss) on MTM, pre-tax

(a)

22

(34)

157

111

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

-

127

172

(27)

Income Taxes related to Operating Earnings reconciling items

(6)

(43)

(150)

(104)

Net Income

192

$        

335

$     

856

$        

760

$     

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

(b) Excludes amounts related to Operating Earnings reconciling items.

($ Millions, Unaudited)

Reconciling Items

PSEG Power Adjusted EBITDA Reconciliation

March 31,

Three Months Ended

Year-Ended

December 31,

(c) Net

of capitalized interest.