Exhibit 99
Public Service Electric and Gas Company
Macquarie Global Infrastructure Conference
New York, New York
June 5, 2009
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 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
reasonable assumptions, we can give no assurance they will be achieved. The results or events predicted in these statements may differ
materially from actual results or events. Factors which could cause results or events to differ from current expectations include, but are not
limited to:
Adverse changes in energy industry, policies and regulation, including market structures and rules.
New energy legislation.
Any inability of our energy 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 developments in the nuclear power industry generally, that could limit operations of our nuclear generating
units.
Actions or activities at one of our nuclear units that might adversely affect our ability to continue to operate that unit or other units at the same
site.
Any inability to balance our energy obligations, available supply and trading risks.
Any deterioration in our credit quality.
Availability of capital and credit at reasonable pricing terms and our ability to meet cash needs.
Any inability to realize anticipated tax benefits or retain tax credits.
Increases in the cost of or interruption in the supply of fuel and other commodities necessary to the operation of our generating units.
Delays or cost escalations in our construction and development activities.
Adverse investment performance of our decommissioning and defined benefit plan trust funds, and changes in discount rates and funding
requirements.
Changes in technology and increased customer conservation.
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 made 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.
Delivering Value: Today and Tomorrow 2
Through its highly skilled workforce and disciplined
capital investments …
2008 National ReliabilityOne Award –
Winner in three of the last four years
Solid regulatory relationships on traditional
utility matters
NJ is ranked 2nd nationally in personal
income per capita
(3.5%)
0.8%
Historical Annual
Load Growth
2004-2008
3,441 M Therms
43,720 GWh
Electric Sales and
Gas Sold and Transported
0.5%
1.7 Million
Gas
0.6%
2.1 Million
Electric
Projected Annual
Load Growth
2009 - 2013
Customers
1.6%
Historical Annual Peak Load
Growth
2004-2008
10,654*
Billing Peak
(MW)
1,429
Network Circuit
Miles
2.0%
Projected PJM Peak Load
Growth
2009 - 2013
Electric and Gas Distribution Statistics (12/31/08)
Transmission Statistics (12/31/08)
… PSE&G has become a nationally recognized leader in delivering
safe and reliable service.
Delivering Value: Today and Tomorrow 3
Regulatory decisions…
PSE&G’s revenues fall under the regulatory jurisdiction of:
NJ Board of Public Utilities (BPU)
Commission has jurisdiction over Electric and Gas Distribution and
Energy Master Plan investments
Filed Electric and Gas base rate case in May 2009
Last base rate case resulted in settlement effective November 2006
Federal Energy Regulatory Commission (FERC)
Commission has jurisdiction over Electric Transmission revenues
Formula rate treatment for Transmission effective on October 1,
2008 with true-up adjustments for operating and maintenance
expense and capital on annual basis
Allowed ROE of 11.68%
Additional incentive of 1.25% ROE for Susquehanna-to-Roseland
investment
… which provide PSE&G the opportunity to earn a fair return.
Delivering Value: Today and Tomorrow 4
PSE&G regulatory strategy…
Earn authorized returns
Minimize regulatory lag
Support state energy goals
Maintain/enhance local relationships
…designed to support customer and shareholder requirements.
Delivering Value: Today and Tomorrow 5
New Jersey Electric & Gas Rate Case*
Filed: May 29, 2009
Test Year: 2009**
51.2%
Equity Ratio
11.5%
Return on Equity
*New Jersey BPU decision anticipated within 9-12 months.
**Test year can be updated for known changes.
$2.4 billion
$3.8 billion
Rate Base
$96.9 million
$133.7 million
Increase
Gas
Electric
Request
Delivering Value: Today and Tomorrow 6
Regional, State Roles – NJ EMP
Maximize energy efficiency; achieve 20% reduction by 2020
Significant role for utilities
PSE&G’s $48M Carbon Abatement Initiative approved 11/21/08
Governor Corzine seeking $500M utility efficiency investment in
2009
Reduce peak demand 5,700MW by 2020 (efficiency, cogen, demand
response)
Stimulate renewables
Strive for 30% RPS by 2020
1,000MW offshore wind by 2012/ 3,000MW by 2020
1,500MW of solar by 2020
Delivering Value: Today and Tomorrow 7
RGGI enabling legislation was signed into law in January
2008.
Section 13 of the RGGI Law permits utilities to invest and/or offer
programs in renewables, conservation and energy efficiency
In its service territory
On a regulated basis
BPU approved rate treatment including ROE or other incentives or
rate mechanisms that decouple utility revenue from sales
Through rate base
Or clause mechanisms
The BPU established rules and regulations to determine utility
participation and the mechanisms for recovery of costs
Written order from BPU within 180 days of filing
BPU rules set forth RGGI Minimum Filing Requirements
Minimum Filing Requirements can be waived at Board staff
determination
Upon filing BPU staff has 30 days to determine if filing is complete
Clock is on hold if initial filing is determined to be deficient
Delivering Value: Today and Tomorrow 8
PSE&G’s current investment plan including the recently
approved state capital stimulus …
… now provides for growth in rate base of 11%.
PSE&G Rate Base
Electric Transmission
Electric Distribution
Gas Distribution
Energy Master Plan
2008
Rate Base $6.9B
Equity Ratio ~ 50%
2009
Rate Base $7.6B
Equity Ratio ~ 51%*
2010
Rate Base $8.6B
Equity Ratio ~ 51%*
2011
Rate Base $9.4B
Equity Ratio ~ 51%*
*Pending regulatory approval
34%
51%
15%
0%
33%
17%
1%
49%
31%
1%
19%
49%
29%
23%
1%
47%
Delivering Value: Today and Tomorrow 9
… would result in rate base growth of 12%.
PSE&G Annual Potential Capital Investments
Rate Base Including Potential Investments
Electric Transmission
Electric Distribution
Gas Distribution
Energy Master Plan
$9.8B
$8.8B
2011
2010
An additional ~$0.7B of
investments to be added
2009-2011 if appropriate
regulatory treatment is
received
Filed positions:
• 10.3% ROE
• 51% Equity Ratio
PSE&G’s additional investment proposals …
$0.00
$50.00
$100.00
$150.00
$200.00
$250.00
$300.00
$350.00
$400.00
2009
2010
2011
Energy Efficiency Stimulus
Solar II
Solar 4 All
28%
22%
5%
45%
31%
4%
18%
47%
Delivering Value: Today and Tomorrow 10
Transmission Growth
PJM approved the $750M Susquehanna to
Roseland line in October 2007
Siting and permitting process underway
Incentives approved by FERC:
ROE: 12.93% (125 basis point adder)
100% CWIP in Rate Base
FERC approval of Sub-Transmission to
Transmission system reliability investments
represents about $340M through 2011, post-2011
~$60M per year
Other approved RTEP projects ~$250M
PJM approved the Branchburg-Roseland-Hudson
line in November 2008, which is expected to be in-
service by 2013. Coupled with additional 500 kV
investments brings potential capital expenditures to
approximately $1.5B
These opportunities will require substantial deployment of capital with siting
and permitting as the major challenges.
Branchburg
Roseland
Jefferson
New Freedom
Smithburg
Deans
MAPP
Hope Creek
Salem
Project
I-765
Interstate
Project
Formula rates provides the proper incentives to encourage
Transmission infrastructure investment.
Delivering Value: Today and Tomorrow 11
State regulatory mechanisms must match desired
capital investment outcomes.
Timely recovery of capital investment is of paramount
importance.
Distribution Formula Rates presents a comprehensive
solution to both investment and sales attrition.
Annual projections for all components of rates including
sales
True ups can handle weather variances, lost sales from
economic downturn or conservation and differences in
spending versus planned commitments
Regardless of the solution, the regulatory treatment
needs to be fair and balanced.
The New Jersey Capital Stimulus Investment is an excellent example
of what can be achieved through collaboration with the regulators.
Delivering Value: Today and Tomorrow 12
Rate Mechanism for EE Stimulus
PSE&G proposes to recover the costs of the program through
an annual adjustment to electric and gas rates which would
not exceed 1%.
The cost of capital would be based on a capital structure
consisting of 51.2% common equity with a return on common
equity of 10.3%--consistent with the return allowed NJNG in
its December 2008 base rate case decision.
The Energy Efficiency Program revenue requirements would
include the recovery of lost distribution margin.
Decoupling and Straight-Fixed-Variable rate design are meaningful alternatives
Maximizing energy savings without lost margin recovery
perpetuates the utility disincentive.
Delivering Value: Today and Tomorrow 13
We proposed an energy efficiency investment to stimulate
the economy and create meaningful savings.
Investment Timeline
2009 – 2011 (18 months)
Category
Investment
Annual
Lifetime
Annual
Lifetime
Jobs
Residential
($ millions)
Whole House
$25
5,428
86,847
27,587
551,744
120
Multi-Family
25
5,428
86,847
27,587
551,744
60
10,856
173,694
55,174
1,103,488
180
Industrial & Commercial
Small Business
20
35,897
538,462
74,359
1,115,385
80
Muni/Local/State Government
35
49,595
743,927
82,186
1,232,794
143
Hospital Efficiency
35
73,200
1,098,000
748,466
11,226,994
140
Data Center
12
38,400
576,000
147,239
2,208,589
50
Tech Demo Sub-Program
12
18,947
284,210
192,000
2,880,000
50
Building
2
3,750
56,250
38,462
576,923
8
219,789
3,296,849
1,282,712
19,240,685
471
Admin Sales, Training, Evaluation, IT
24
TOTAL
$190
230,645
3,470,543
1,337,886
20,344,173
651
Savings (MWh)
Savings (Dtherms)
Our program also addresses markets that would ordinarily be ignored.
Delivering Value: Today and Tomorrow 14
PSE&G Solar 4 All Proposal
Neighborhood Solar (40 megawatts) - $264M investment
Solar panels on utility poles and street lights in neighborhoods throughout
PSE&G’s service territory.
Local Government Solar (43 megawatts) - $273M investment
Solar, owned and operated by PSE&G, on municipal and public school district
facilities. Local governments will receive a credit on their utility bill equal to the
amount of energy generated by the system.
Centralized Solar (35 megawatts) – $221M investment
Solar systems on PSE&G land/buildings.
Solar energy farms on brownfields, non-profit-owned real estate, and
underdeveloped real estate
HMFA/Affordable Housing Solar (2 megawatts) - $15M investment
Solar on New Jersey Housing and Mortgage Finance Agency (HMFA)-financed
or other affordable housing communities
PSE&G is seeking a 10.3% ROE on its equity capital invested (51.2% common equity
in its capital structure). Customer rate impact mitigated by benefits associated with ITC
and the value of electricity and Solar Renewable Energy Certificates (SRECs)
generated by the projects
NJ BPU has 180 days to respond.
This program also addresses underserved markets.
Delivering Value: Today and Tomorrow 15
Investing in Solar assets provides a superior outcome
for our investors.
Strong belief that utilities can help to move the solar
market in a positive direction with clear oversight by
the regulators
Lower panel costs through acquisition for utility programs
Create meaningful and tangible progress towards
aggressive EMP goals
Create a viable SREC market
PPA’s are dilutive to our shareholders
Imputed debt by rating agencies require corrective
action, i.e., increase equity content in capital structure to
offset additional leverage
Utility profits are regulated and transparent to
regulators.
Delivering Value: Today and Tomorrow 16
Reliability Performance Metrics compared to
Peer Panel have been Top Quartile since:
National ReliabilityOne
Award winner three of
the last four years
… we achieve top quartile reliability performance. It is why we are a
recognized leader in providing safe and reliable service to customers.
PSE&G Base* O&M
2004
CAIDI
2006
Damages per Locate 1,000 Requests
2000
Leak Response Rate
2003
Gas Leak Reports per Mile
2004
MAIFI (Excluding Major Storms)
2000
SAIFI (Excluding Major Storms)
CAGR
2007 – 2011: 0.6%
2008 – 2011: 2.0%
PSE&G effectively manages its capital and O&M deployment. By
capturing productivity gains …
*Excludes pension, EMP and revenue generating expenses
0
100
200
300
400
500
600
2007
2008
2009
2010
2011
Delivering Value: Today and Tomorrow 17