Exhibit 99
Public Service Enterprise Group
NYC Investor Meeting
February 14, 2007
Forward-Looking Statement
The statements contained in this communication about our and our subsidiaries’
future performance, including, without limitation, future revenues, earnings,
strategies, prospects and all other statements that are not purely historical, are
forward-looking statements for purposes of the safe harbor provisions under The
Private Securities Litigation Reform Act of 1995. Although we believe that our
expectations are based on information currently available and on reasonable
assumptions, we can give no assurance they will be achieved. There are a
number of risks and uncertainties that could cause actual results to differ
materially from the forward-looking statements made herein. A discussion of
some of these risks and uncertainties is contained in our Annual Report on Form
10-K and subsequent reports on Form 10-Q and Form 8-K filed with the
Securities and Exchange Commission (SEC), and available on our website:
http://www.pseg.com. These documents address in further detail our business,
industry issues and other factors that could cause actual results to differ
materially from those indicated in this communication. In addition, any forward-
looking statements included herein represent our estimates only as of today and
should not be relied upon as representing our estimates as of any subsequent
date. While we may elect to update forward-looking statements from time to time,
we specifically disclaim any obligation to do so, even if our estimates change,
unless otherwise required by applicable securities laws.
1
Operations
PSE&G consistently demonstrates top reliability performance
Significant improvement in nuclear operations
Regulatory
PSE&G settlement demonstrates return to constructive environment
Environmental – achieved NJ coal solution
Energy Markets
Power benefiting from higher prices and lower risk through forward hedges
Utility customers benefit from staggered BGS – another auction complete
Financial
International – reduced exposure, improved stability
Improving cash flows and credit measures
Strong earnings growth in 2007 and 2008
We have made steady progress across a variety of areas.
Our objective is to build on these results to make a
strong company even stronger.
2
Much has been accomplished since the termination of
the merger…
September 2006
October
November
December
January 2007
9/14 – Merger Termination
Announced
11/16–
PSE&G named America’s Most
Reliable Electric Utility
1/2 – Sale of
Lawrenceburg
announced
11/9 –
PSE&G Rate
Settlements
12/20– PSEG resumes direct
management of Nuclear stations
and Exelon’s senior management
team joins PSEG.
11/30- PSEG
Power Consent
Decree
1/31 - Operating Earnings at
upper end of guidance;
Confirmed strong ’07-’08
outlook; Improved Balance
Sheet
9/25 –
CEO
Succession
Announced
Regulatory
Operations
Management
Financial /
Asset
Rationalization
12/7 –
New Senior Team
Announced
1/16 –
Dividend
Increase
Organizational Design
& Staffing in progress
12/31 – Power
completes 96%
2006 capacity
factor
3
0.00
0.25
0.50
0.75
1.00
Power
Re-contracting &
Higher Margins
$.22
Depreciation,
Interest & Other
$.06
O&M $.03
Nuclear Operations
$.02
BGSS ($.11)
Turbine Impairment
($.10)
New Assets ($.06)
NDT ($.05)
MTM ($.05)
Shares O/S ($.01)
PSE&G
O&M & Other
$.02
Transmission
$.02
Demand $.02
Effective Tax
Rate $.02
Weather ($.06)
Expiration of
Depreciation
Credit ($.03)
4Q 2006
Operating
Earnings**
4Q 2005
Operating
Earnings*
*Excludes ($.02) Merger Costs, Cumulative Effect of an Accounting Change ($.07) and ($.02) Discontinued Operations
**Excludes ($.87) Discontinued Operations
Holdings
Lower taxes $.08
Lower Interest &
Other $.04
Gain on sale of
Seminole lease in
2005 ($.18)
TIE – MTM &
Operations ($.08)
RGE Sale ($.04)
Turboven
Impairment ($.02)
Enterprise
Interest
Savings $.01
4Q 2006 Results - Earnings Variance
$0.94
(.01)
(.05)
(.20)
.01
$0.69
4
2006 Results - Earnings Variance
1.00
1.50
2.00
2.50
3.00
3.50
4.00
Power
Re-contracting &
Higher Margins
$.84
Nuclear
Operations $.20
Depreciation,
Interest & Other
$.04
New Assets ($.23)
BGSS ($.22)
NDT ($.13)
Turbine
Impairment ($.10)
Shares O/S ($.07)
Environmental
Reserve ($.06)
O&M ($.06)
PSE&G
Transmission
$.06
Other $.01
Weather ($.19)
Expiration of
Depreciation
Credit ($.15)
O&M ($.04)
Depr./Amort.
($.04)
Shares O/S
($.03)
2006
Operating
Earnings**
2005
Operating
Earnings*
Holdings
Texas Ops $.21,
including MTM of
$.13
Lower Interest &
Taxes $.18
2005 UAL Write-
off $.05
FX Gains/Losses
$.03
Prior Year Gains:
Eagle Point,
Seminole,
SEGS, MPC
($.31)
RGE Sale ($.06)
Turboven
Impairment
($.02)
Enterprise
Interest
Savings $.03
.21
.08
(.38)
.03
$3.77
$3.71
*Excludes ($.14) Merger Costs, Cumulative Effect of an Accounting Change ($.07) and ($.85) Discontinued Operations
**Excludes ($.03) Merger Costs, ($.70) Loss on Sale of RGE and ($.05) Discontinued Operations
5
PSEG 2007 Earnings Outlook & Drivers
2006 EPS
Power
PSE&G
Holdings
2007 Guidance
2008
$3.71
Excess of
10% Growth
Forward
Hedging
Re-contracting
- PJM/NE
Capacity
Market Design
Gas Rate
Case
Electric
Financial
Review
Weather
Texas
Asset Sales
New
Accounting
Standard
Increase/(Decrease) vs.
2006 Operating Earnings
2007 Forecast Operating
Earnings Ranges
$232 - $357
($97) – ($82)
$68 - $88
$255 - $335
$1170 - $1295
$130 - $145
$330 - $350
$770 - $850
$4.60 - $5.00
2006
Operating
Earnings:
$938M*
*Excludes Loss on Sale of RGE of $178M ($.70 per share), Merger Costs of $8M ($.03 per share) and Discontinued
Operations of $13M ($.05 per share)
6
PSE&G
PSE&G Overview
Electric
Distribution
$3.2B
Gas Distribution
$2.1B
Electric
Transmission
$0.7B
Rate Base
(As of December 31, 2006)
2.1 M electric customers
1.7 M gas customers
2,600 sq miles in service
territory
8
Fair outcomes on recent gas and electric cases will
help ensure…
Settlement agreement with BPU staff, Public Advocate, and other parties
Gas Base Rate case provides for $79M of gas margin
$40M increase in rates
$39M decrease in non-cash expenses
Electric Distribution financial review provides $47M of additional revenues
Base rates remain effective until November 2009
New Jersey regulatory climate providing a fair return to investors
Opportunity to earn a ROE of 10%
…our continued ability to provide safe, reliable
service to customers and fair returns to shareholders.
9
Rate relief and normal weather…
$0
$100
$200
$300
$400
2006 Operating
Earnings*
Gas Rate Relief
Electric Financial
Review
Weather
2007 Guidance
$262M
$30M - $40M
$20M - $25M
$330M
to
$350M
$20M - $30M
… provide opportunity to earn allowed returns.
* Excludes $1M of Merger Costs
10
Looking Forward PSE&G…
Continues to invest in its assets for the future
Distribution System Reinforcements
Transmission Investments
Customer Service
Is committed to meeting customer needs and
expectations
Is supporting NJ’s Energy Master Plan process, which
may create opportunities for additional investments
Advanced Metering, Solar Installations/other renewables and Energy
Efficiency
Endeavors to maintain constructive regulatory relations
regarding traditional utility matters
11
PSEG Power
PSEG Power Overview
Diverse asset mix mitigates risk
and provides strong returns
13,600* MW of nuclear, coal, gas,
oil and hydro facilities
Low-cost portfolio
Strong cash generator
Regional focus with demonstrated
BGS success
Assets favorably located
Many units east of PJM constraint
Southern NEPOOL/Connecticut
constraint
Near customers/load centers
Integrated generation and portfolio
management optimizes asset-
based revenues
18 %
47 %
8 %
26 %
Fuel Diversity – 2007*
Coal
Gas
Oil
Nuclear
Pumped
Storage
1%
(MWs)
* After sale of Lawrenceberg
Energy Produced - 2006
(MWhrs)
55%
27%
16%
Oil 1%
Pumped
Storage
1%
Nuclear
Coal
Gas
Total MWhrs: 53,617
13
Capacity Factors
82%
90%
96%
77%
89%
96%
2004
2005
2006
*Uprate of 127MW scheduled for Fall 2007
Strong operational performance
Capacity factors: Year -end ~96%
Summer ~100%
Outage management
Site records achieved, including most
recent 21 day refueling outage at
Salem 2
Nuclear Operating Services
Agreement (NOSA)
PSEG to resume direct management of
Salem and Hope Creek
Exelon’s senior management team
joins PSEG
Hope Creek*
Salem
1 & 2
Peach Bottom
2 & 3
PSEG MW
Owned
1,059MW*
1,323MW
1,112MW
Ownership
PSEG Owned
Jointly Owned
Jointly Owned
Operations
PSEG
Operated
(NOSA)
PSEG
Operated
(NOSA)
Exelon
Operated
Total
Fleet:
3,494 MW
Strong Nuclear Operations
NJ Fleet:
2,382MW
14
Strong Fossil Operations round out a diverse portfolio…
0
5,000
10,000
15,000
20,000
25,000
2002
2003
2004
2005
2006
Coal
Combined Cycle
Peaking & Other
Total Fossil Output (Gwh)
A Diverse 10,000 MW Fleet
2,400 MW coal
3,200 MW combined cycle
4,400 MW peaking and other
Strong Performance
Continued growth in output
Improved fleet performance
Achieved resolution regarding
Hudson / Mercer
…in which over 80% of fleet output is from low cost coal
and nuclear facilities.
15
Strengthening of capacity market design…
Total Generating Capacity
PSEG Power
PJM
NY
NE
Total Capacity 13,600MW
(1,500MW under RMR)
New England
Forward Capacity Market (FCM) began 12/1/06
Transition period prices have been established
Grows from $37/kw-yr to $49/kw-yr
through 2010
First auction scheduled in 2008 for June 2010
delivery
PJM
FERC Approved 12/22/06
Locational pricing
4 zones initally, 23 in 2010
Anticipated implementation 6/1/07
Auction schedule:
2007-2008 April 2007
2008-2009 July 2007
2009-2010 October 2007
2010-2011 January 2008
…provides meaningful market signals, and enhances
margin for Power’s generating fleet.
16
The 1st RPM-year spans June 2007 through May 2008,
and will cover similar one year (BGS) intervals
thereafter. Recent market activity has shown
considerable price increases for the 2007/2008 year.
PJM’s Reliability Pricing Model
RPM reflects a change in
market design
- More structured, forward-
looking, transparent pricing model
- Gives prospective investors in
new generating facilities more
clarity on future value of capacity
- Sends pricing signal to
encourage expansion of capacity
where needed for future market
demands
Capacity Prices
Capacity revenues, driven by RPM, provide a meaningful increase in Power’s
margin - $100 - $150 million for 2007 - and is anticipated to increase in future
years due to full year PJM impact and as more capacity
comes off existing contracts
$0
$20
$40
$60
2001
2002
2003
2004
2005
2006
2007
Feb 2007
Sept 2006
Range of
recent prices
for ’07 – ’08
year
17
20,000
4,000
8,000
12,000
16,000
2002
2003
2004
2005
2006
2007
2008
2002 FP
Auction
1 Year
170
Tranches
2003 FP
Auction
10
months
104
Tranches
2003 FP Auction
34 months
51 Tranches
2004 FP
Auction - 1 Yr.
50 Tranches
2004 FP Auction - 3 Years
51 Tranches
2006 FP Auction Load
54 Tranches
2005 FP Auction Load
50 Tranches
2007 FP Auction Load
(projected)
New Jersey BGS Auction Structure
The BGS structure in New Jersey successfully mitigates
risk for both suppliers and for customers.
18
2003 Auction
2004 Auction
2005 Auction
2006 Auction
2007 Auction
Market Viewpoint - BGS Auction Results
Capacity
Load shape
Transmission
Congestion
Ancillary services
Risk premium
Full Requirements
Round the Clock
PJM West
Forward Energy
Price
$33 - $34
$36 - $37
$55.59
$55.05
$65.91
$44 - $46
~ $21
~ $18
~ $21
$102.21
$67 - $70
~ $32
Increase in Full Requirements Component Due to:
Increased Congestion (East/West Basis)
Increase in Capacity Markets/RPM
Volatility in Market Increases Risk Premium
$98.88
~ $41
$58-$60
Power has been a successful participant in each BGS auction.
19
$250
$500
$750
$1,000
2006
2007
2008
The year over year improvements…
Energy
Capacity
Other
…drive growth in PSEG’s 2007 earnings guidance
with further improvements in 2008.
$515M
Power drives 2008 earnings
guidance in excess of 10%
over 2007
Full year of capacity
Recontracting of 2005 BGS
$200M - $240M
$50M - $80M
$770M
to
$850M
$5M - $15M
20
Looking Forward PSEG Power…
Transitions its New Jersey nuclear plants to independent
operations
Moves forward to enhance environmental profile through
Consent Decree compliance
Anticipates energy markets to provide attractive growth
Energy hedges roll with increased margin
Capacity markets increasing – RPM auctions will provide visibility
Positions balance sheet for growth
21
PSEG Energy Holdings
6%
15%
3%
45%
31%
PSEG Energy Holdings Overview
Other Resources Investments
TOTAL ASSETS $6.2 B – 12/31/06
PSEG Global
Domestic
Generation
PSEG Resources
Leveraged Leases
Other International Generation
Chile & Peru
Generation and
Distribution
Two businesses with redirected strategy to maximize value of existing
investments
Balance and diversity: over 60 total investments; no single investment
more than 11% of Holdings assets
23
Improved risk profile by opportunistically reducing
capital invested in non-strategic assets…
…while increasing returns and sharpening focus on G&A.
2004
2006
$2.6B
$2.0B
Chile & Peru
US
Other
$900M
$400M
$1.3B
$160M
$500M
$1.4B
34%
16%
50%
8%
24%
68%
$104
$108
$41
$168
$57
$20
$(40)
$(35)
$(25)
$296M
48%
45%
2004
2006
2007 Est.
$202M
$210M-$230M
Composition of Global’s Pre-tax
Equity-in-Earnings
G&A
Chile
& Peru
US
Other
28%
20%
51%
6%
57%
37%
7%
Global’s Invested Capital
24
Holdings has provided meaningful earnings and
cash flow…
…which has supported debt reduction and return
of capital to PSEG.
Sources & Uses of Cash from 2004 - 2006
$0.0
$0.5
$1.0
$1.5
$2.0
$2.5
Sources
Uses
Asset
Sales
Cash Ops/
Cash on
Hand
Reduced
Debt
Return
Capital/
Dividends
Significant de-capitalization
totaling $2.3B from 2004 -
2006
$609M
-
$311M
Net Debt
Reduction
47%
3.4x
$491M
2004
36%
41%
Recourse
Debt/Capital
4.5x
2.5x
FFO/Interest
$520M
$412M
Dividends & ROC
2006
2005
Debt Reduction & Dividends from 2004 - 2006
25
PSEG Energy Holdings – 2007 Drivers
$0
$100
$200
$300
2006 Operating
Earnings *
Texas
FIN 48
Taxes
Asset Sales
2007 Guidance
$227M
$25M - $35M
$10M - $20M
$130M
to
$145M
$5M - $10M
$35M - $45M
*Excludes $178M Loss on Sale of RGE
26
Looking Forward Energy Holdings…
Global’s Portfolio – Allocation of Invested Capital
Improved risk profile
Chile - Investment Grade; Peru - approaching
US – Texas is merchant; others are contracted
Stable earnings and cash distributions
Continue opportunistic monetization of non-strategic assets
Optimizes returns on Global’s current portfolio
Attractive market opportunities for Texas assets
Continue to seek increased returns in Chile and Peru
Other opportunities (eg. G&A)
Monitors Resources’ lease portfolio
Lessee credit risks exist, but has subsided
Current weighted average rating: A-/A3
Adoption of FIN 48 decreases earnings
Continue to monitor tax landscape
27
Looking Forward PSEG…
Financial
Strength
We will focus on the basics of operational excellence...
…to produce financial strength that will be deployed
through disciplined investment.
Operational
Excellence
Disciplined
Investment
29
Strong earnings and cash flows will be used to
further de-lever the balance sheet.
Improving our credit profile will enable us to
maximize growth opportunities.
$2.00
$3.00
$4.00
$5.00
$6.00
2005 Actual
2006 Guidance
2007 Guidance
2008 Est.
10%
15%
20%
25%
30%
Excess
of 10%
Growth
FFO/
Total Debt
EPS
YE ‘06
EPS:
$3.71
Guidance range: ’06: $3.45 - $3.75
’07: $4.60 - $5.00
YE ‘05
EPS:
$3.77
30
…and capitalize on multiple alternatives to grow the generation and
delivery business.
From a position of financial strength, we will make
disciplined investments…
Near-term:
Capitalize on opportunities for rate base growth
Distribution, transmission, customer service
Optimize our existing generation portfolio
Environmental improvements at NJ coal stations
Nuclear uprate
Take a hard look at international assets
Longer-term:
Flexibility to pursue growth in core businesses and regions
PSE&G integrating with NJ Energy Master Plan initiatives
Advanced metering
Renewables
Demand side management
Power well positioned for growth in attractive Northeast markets
Strong and improving operations
Site expansion capability
Attractive cash flow
Consider a range of strategic alternatives
31
$50.00
$100.00
$150.00
$200.00
$250.00
2001
2002
2003
2004
2005
2006
PSEG
S&P 500
DJ Utilities
S&P Electrics
Creating Shareholder Value
Focused on producing superior shareholder return
5-Year Cumulative Total Comparative Returns
(as of December 31, 2006)
32