 Bank of America-Merrill Lynch 2011 Power & Gas Leaders Conference September 21, 2011 EXHIBIT 99 PSEG Public Service Enterprise Group |
 2 Forward-Looking Statement Readers are cautioned that statements contained in this presentation about our and our subsidiaries' future performance, including future revenues, earnings, strategies, prospects, consequences 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. When used herein, the words “will”, “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. Although we believe that our expectations are based on reasonable assumptions, they are subject to risks and uncertainties and we can give no assurance they will be achieved. The results or developments projected or predicted in these statements may differ materially from what may actually occur. Factors which could cause results or events to differ from current expectations include, but are not limited to: • adverse changes in energy industry law, policies and regulation, including market structures and a potential shift away from competitive markets toward subsidized market mechanisms, transmission planning and cost allocation rules, including rules regarding how transmission is planned and who is permitted to build transmission in the future, and reliability standards, • any inability of our transmission and distribution businesses to obtain adequate and timely rate relief and regulatory approvals from federal and state regulators, • changes in federal and state environmental regulations that could increase our costs or limit operations of our generating units, • changes in nuclear regulation and/or general developments in the nuclear power industry, including various impacts from any accidents or incidents experienced at our facilities or by others in the industry that could limit operations of our nuclear generating units, • actions or activities at one of our nuclear units located on a multi-unit site that might adversely affect our ability to continue to operate that unit or other units located at the same site, • any inability to balance our energy obligations, available supply and trading risks, • 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, • any inability to realize anticipated tax benefits or retain tax credits, • 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, • adverse changes in the demand for or price of the capacity and energy that we sell into wholesale electricity markets, • increase in competition in energy markets in which we compete, • 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 discount rates and funding requirements, and • changes in technology and customer usage patterns. For further information, please refer to our Annual Report on Form 10-K, including Item 1A. Risk Factors, and subsequent reports on Form 10-Q and Form 8-K filed with the Securities and Exchange Commission. 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 presentation. 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 internal estimates change, unless otherwise required by applicable securities laws. |
 3 GAAP Disclaimer PSEG presents Operating Earnings in addition to its Net Income reported in accordance with accounting principles generally accepted in the United States (GAAP). Operating Earnings is a non-GAAP financial measure that differs from Net Income because it excludes gains or losses associated with Nuclear Decommissioning Trust (NDT), Mark-to-Market (MTM) accounting, and other material one-time items. PSEG presents Operating Earnings because management believes that it is appropriate for investors to consider results excluding these items in addition to the results reported in accordance with GAAP. PSEG believes that the non-GAAP financial measure of Operating Earnings provides a consistent and comparable measure of performance of its businesses to help shareholders understand performance trends. This information is not intended to be viewed as an alternative to GAAP information. The last two slides in this presentation include a list of items excluded from Income from Continuing Operations to reconcile to Operating Earnings, with a reference to that slide included on each of the slides where the non-GAAP information appears. |
 6 PSEG Advantage: Asset mix, strong operations… Reliability One Award winner for Mid-Atlantic Region – 9 th year in a row Regulatory agreements and cost control provide opportunity for improved returns Investment program focused on growth and providing customers with clean, reliable energy PSEG Power PSE&G …with balance sheet to support growth. Asset mix Strong platform open to improvement in the market Well-run, low-cost generating fleet combined with fuel flexibility supports margins Hedging strategy mitigates near-term risk Major environmental compliance capital program completed Actively working to defend competitive power markets Reducing risk Building a platform for renewables and investing through PPA-supported projects International lease investments terminated Resources carefully monitoring remaining traditional leases and other investments PSEG Energy Holdings |
 11 PSEG��s 2011 earnings guidance reflects continued improvement at PSE&G… – Network transmission service revenue increase = ~ $0.05 per share – Full year of E&G Rate Relief = ~ $0.05 per share – Each 1% change in Load = ~ $0.02 per share – Each 1% change in O&M = ~ $0.01 per share – 2010 Utility ROE 9.9%; Each 10 bp = $0.01 per share Revenue/Margin – Decline in average Hedge Price/Volume = ~ ($0.25-$0.30) per share – Decline in Capacity revenues = ~ ($0.15-$0.20) per share – Improvement in WPT/BGSS = ~ $0.03-$0.05 per share Other Expense – Higher O&M = ~ ($0.03) per share – Increase in Depreciation rate = ~ ($0.05) per share – Absence of LILO/SILO termination gains = ~ ($0.06) per share – Loss of Income from Asset Sales = ~ ($0.04) per share Guidance $2.75 $2.50 2011 Drivers …offset by a decline in margins at Power and Holdings. Earnings Per Share * See page 64 for Items excluded from Income from Continuing Operations to reconcile to Operating Earnings. E Estimate. $3.12 $0.00 $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 $3.50 2010 Operating Earnings* 2011E Earnings Guidance* |
 Outlook for 2011 Operating Earnings Maintained * See page 64 for Items excluded from Income from Continuing Operations to reconcile to Operating Earnings. $2.75E $2.50E $3.12 $0.00 $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 $3.50 2010 Operating Earnings* 2011E Earnings Guidance* EPS contribution from PSE&G expected to represent 35 to 40% of 2011 forecast earnings versus 27% contribution to 2010 earnings. 12 |
 41 Investment program supporting NJ’s energy and economic goals has led to 45 MW of solar… … with 30 MW in development. ($ Millions) Approval Date Total Amount Spending Thru 6/2011 Remaining Spending Thru 2013 Solar Loan I & II April 2008/ November 2009 $248 $93 $151 Carbon Abatement December 2008 46 30 16 NJ Capital Infrastructure Stimulus I April 2009 694 701 - Solar 4 All * July 2009 465 278 187 Energy Efficiency Economic Stimulus July 2009 166 118 48 Demand Response July 2009 65 10 35 Energy Efficiency Economic Stimulus Extension July 2011 95 - 95 NJ Capital Infrastructure Stimulus II July 2011 273 - 273 Total $2,052 $1,230 $805 * Filing amount based on installation of 80MW, total forecasted spend is lower due to a lower cost per watt to install. |
 43 Energy Holdings is pursuing renewable energy alternatives with emphasis on solar • Solar is a good strategic fit for PSEG – Predictable and attractive returns through long-term Power Purchase Agreements with creditworthy counterparties – Improves geographic, technology, regulatory and market risk profile – Strong relationships established across the value chain – Favorable tax attributes, long-term earnings, short construction cycles and proven technology • Solar In-Service – Installed 29 MW at three locations; ~$117 million investment to date – Projects completed ahead of schedule and under budget; operating performance better than plan |
 51 PSEG received a perfect score of 100 on the Corporate Equality Index and Best Places to Work 2010 Survey conducted by the Human Rights Campaign. The Edison Award. Presented annually by EEI and recognizes U.S. and international electric utilities for their innovation and role in advancing the industry. Our focus on customers, community and employees… PSE&G named America’s Most Reliable Utility 4 of past 6 years Mid-Atlantic Region winner for the 9 th straight year Carbon Performance Leadership Index (CPLI) 2010. Named Maplecroft Climate Innovation Index (CII) utility sector Leader. Second year in World Index, fourth year in the North American Index. PSEG is one of only two U.S. electric companies in the World Index. … has been widely recognized. |
 Note: Forward prices as of September 2011. Forward spark spreads have increased significantly from earlier this year… … while the increase in forward dark spreads has been more moderate. -$10 $0 $10 $20 $30 $40 $50 2005 2006 2007 2008 2009 2010 2011 2012 2013 $0 $10 $20 $30 $40 $50 $60 $70 2005 2006 2007 2008 2009 2010 2011 2012 2013 Annual Average Historical Monthly Forecast PJM Western Hub Spark Spread (On-Peak – Henry Hub x 7.5 Heat Rate) PJM Western Hub Dark Spread (RTC – Central Appalachian Coal x 10 Heat Rate) 56 |
 57 PSEG 2011 Operating Earnings Guidance - by Subsidiary $ millions (except EPS) 2011E 2010A PSEG Power $ 765 – $ 855 $ 1,091 PSE&G $ 495 – $ 520 $ 430 PSEG Energy Holdings $ 0 – $ 5 $ 49 Enterprise $ 5 – $ 15 $ 14 Operating Earnings* $ 1,265 – $ 1,395 $ 1,584 Earnings per Share $ 2.50 – $ 2.75 $ 3.12 * See Page 64 for Items excluded from Income from Continuing Operations to reconcile to Operating Earnings. |
  63 Items Excluded from Income from Continuing Operations to Reconcile to Operating Earnings Please see Page 3 for an explanation of PSEG’s use of Operating Earnings as a non-GAAP financial measure and how it differs from Net Income. Pro-forma Adjustments, net of tax 2011 2010 2011 2010 Earnings Impact ($ Millions) Gain (Loss) on Nuclear Decommissioning Trust (NDT) Fund Related Activity (PSEG Power) 15 $ 10 $ 42 $ 20 $ Gain (Loss) on Mark-to-Market (MTM) (PSEG Power) 4 (37) 8 12 Market Transition Charge Refund (PSE&G) - (72) - (72) Total Pro-forma adjustments 19 $ (99) $ 50 $ (40) $ Fully Diluted Average Shares Outstanding (in Millions) 507 507 507 507 Per Share Impact (Diluted) Gain (Loss) on NDT Fund Related Activity (PSEG Power) 0.03 $ 0.02 $ 0.08 $ 0.04 $ Gain (Loss) on MTM (PSEG Power) 0.01 (0.07) 0.02 0.02 Market Transition Charge Refund (PSE&G) - (0.14) - (0.14) Total Pro-forma adjustments 0.04 $ (0.19) $ 0.10 $ (0.08) $ For the Three Months Ended For the Six Months Ended June 30, June 30, PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED Reconciling Items Excluded from Continuing Operations to Compute Operating Earnings (Unaudited) |
 64 Please see Page 3 for an explanation of PSEG’s use of Operating Earnings as a non-GAAP financial measure and how it differs from Net Income. Items Excluded from Income from Continuing Operations to Reconcile to Operating Earnings Pro-forma Adjustments, net of tax 2010 2009 2008 Earnings Impact ($ Millions) Gain (Loss) on Nuclear Decommissioning Trust (NDT) Fund Related Activity (PSEG Power) 46 $ 9 $ (71) $ Gain (Loss) on Mark-to-Market (MTM) (PSEG Power) (1) (11) 14 Market Transition Charge Refund (PSE&G) (72) - - Net Reversal of Lease Transaction Reserves (Energy Holdings) - 29 - Lease Transaction Reserves (Energy Holdings) - - (490) Asset Impairments - - (13) Premium on Bond Redemption - - (1) Total Pro-forma adjustments (27) $ 27 $ (561) $ Fully Diluted Average Shares Outstanding (in Millions) 507 507 508 Per Share Impact (Diluted) Gain (Loss) on Nuclear Decommissioning Trust (NDT) Fund Related Activity (PSEG Power) 0.09 $ 0.02 $ (0.14) $ Gain (Loss) on Mark-to-Market (MTM) (PSEG Power) - (0.02) 0.03 Market Transition Charge Refund (PSE&G) (0.14) - - Net Reversal of Lease Transaction Reserves (Energy Holdings) - 0.05 - Lease Transaction Reserves (Energy Holdings) - - (0.96) Asset Impairments - - (0.03) Premium on Bond Redemption - - - Total Pro-forma adjustments (0.05) $ 0.05 $ (1.10) $ December 31, PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED Reconciling Items Excluded from Continuing Operations to Compute Operating Earnings (Unaudited) For the Twelve Months Ended |