Exhibit 99
|
| NYSE:PEG | |||
For further information, contact: |
|
| |||
| Ø | Kathleen A. Lally, Vice President – Investor Relations |
| Phone: 973-430-6565 | |
| Ø | Greg McLaughlin, Sr. Investor Relations Analyst |
| Phone: 973-430-6568 | |
| Ø | Yaeni Kim, Sr. Investor Relations Analyst |
| Phone: 973-430-6596 | |
Investor NewsPSEG ANNOUNCES THIRD QUARTER 2008 EARNINGS
$0.94 PER SHARE FROM CONTINUING OPERATIONS
Strong Operating Performance in face of Difficult Markets
2008 Earnings Guidance Maintained at $2.80-$3.05
(October 31, 2008)—Public Service Enterprise Group (PSEG) reported income from continuing operations for the third quarter of 2008 of $476 million or $0.94 per share compared to income from continuing operations during the third quarter of 2007 of $490 million or $0.96 per share. Operating earnings in the third quarter of 2008 were equivalent to income from continuing operations. Excluding a $7.0 million impairment of the company’s investment in Turboven, operating earnings in the third quarter of 2007 were $497 million or $0.97 per share. Predominantly due to a gain on the sale of SAESA of $187 million, which was sold in July 2008, income from discontinued operations amounted to $180 million or $0.35 per share during the 2008 third quarter bringing net income for the period to $656 million or $1.29 per share. By comparison, in the third quarter of 2007, income from discontinued operations raised net income by $16 million or $0.03 per share to $506 million, or $0.99 per share.
Ralph Izzo, chairman, president and chief executive officer of PSEG, said “Although the economy is experiencing unprecedented turbulence, the focus and dedication of PSEG’s employees to operational excellence continues to provide the solid foundation that allowed us to report very strong earnings for the first nine months of the year, and comfortably supports our 2008 earnings guidance of $2.80-$3.05 per share.”
PSEG CONSOLIDATED EARNINGS (unaudited) | ||||||||
For the Quarters Ended September 30, | ||||||||
2008 and 2007 | ||||||||
| ||||||||
|
| Income |
| Diluted Earnings | ||||
|
| ($millions) |
| Per Share | ||||
|
| 2008 |
| 2007 |
| 2008 |
| 2007 |
Net Income |
| $656 |
| $506 |
| $1.29 |
| $0.99 |
Less: Income from Discontinued Ops |
| 180 |
| 16 |
| 0.35 |
| 0.03 |
Income From Continuing Ops |
| $476 |
| $490 |
| $0.94 |
| $0.96 |
Loss from Impairments |
| — |
| 7 |
| — |
| 0.01 |
|
|
|
|
|
|
|
|
|
Operating Earnings (Non-GAAP) |
| $476 |
| $497 |
| $0.94 |
| $0.97 |
|
|
|
| Avg. Shares | 508M |
| 509M | |
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.
Izzo went on to say that “PSEG has worked hard to build a strong financial base through our commitment to operational excellence and prudent financial management. In addition, we have reduced debt with proceeds from the sale of international assets. PSEG has $3.35 billion of available liquidity with very modest financing requirements over the next 15 months which will help us navigate through these turbulent times.”
We have adjusted our full-year 2008 operating earnings guidance by subsidiary to reflect strong earnings from our Texas generating facilities at PSEG Energy Holdings, and the potential for a further decline in the value of Power’s NDT fund given the performance of financial markets in October.
Operating earnings guidance by subsidiary for 2008 has been adjusted as follows:
2008 Operating Earnings Guidance | ||
| Current | Prior |
PSEG Power | $1,010 - $1,110 | $1,040 - $1,140 |
PSE&G | 350 – 370 | 350 - 370 |
PSEG Energy Holdings | 75 - 90 | 45 - 60 |
PSEG Parent | (15) – (10) | (15) - (10) |
Operating Earnings | $1,420 - $1,560 | $1,420 - $1,560 |
Earnings Per Share | $2.80 - $3.05 | $2.80 - $3.05 |
Ralph Izzo went on to say that “these results (at the mid-point) of 2008’s guidance represent growth of 8% over 2007’s operating earnings of $2.71 per share. There have been numerous examples this year of our commitment to operational excellence. These range from record setting output at our generation fleet to industry recognition of our utility reliability record.”
Operating Earnings Review and Outlook by Operating Subsidiary
See Attachment 6 for details regarding the quarter-over-quarter earnings reconciliations for each of PSEG’s businesses.
PSEG Power
PSEG Power reported operating earnings of $328 million ($0.65 per share) for the third quarter of 2008 compared with operating earnings of $338 million ($0.66 per share) reported during the third quarter of 2007.
PSEG Power’s margins benefited from higher energy pricing and an increase in generation output. Higher realized prices and strong operations added $0.12 per share to earnings. More than half of the improvement in margins was driven by higher prices in PJM. The strong performance of the nuclear fleet, coupled with higher output from the combined cycle units, also allowed PSEG Power to expand its margins during the quarter. The benefits from increased generation offset higher operating and maintenance expense associated with planned outages ($0.03 per share) at our fossil units, as well as an increase in operating expenses at the nuclear fleet ($0.03 per share) associated with an early start to the refueling outage at Peach Bottom 2 and outage-related work at Salem 1. The improvement in margins was more than offset, however, by a reversal of most of the mark-to-market gains reported during the second quarter on positions entered into to hedge 2009 gas exposure ($0.05 per share). Power’s quarterly earnings comparisons were also affected by a reduction in the value of securities held in the Nuclear Decommissioning Trust Fund ($0.02 per share).
2
William Levis, president and chief operating officer of PSEG Power, indicated that “the nuclear fleet is performing extremely well.” During the quarter, the capacity factor of the nuclear units operated by PSEG Power increased to 98% as the result of the continued strong performance from Hope Creek. The nuclear fleet (including PSEG Power’s interest in the Peach Bottom station) operated at a capacity factor of 94.6% in the third quarter. The fleet’s performance for the quarter brought the year-to-date capacity factor to 93%. The fleet’s full year 2008 capacity factor is projected at 91% taking into account the recently completed refueling outage at Peach Bottom 2, and the refueling outage currently underway at Salem No. 1. This unit is expected to return to service in the first half of November. Levis added that “PSEG Power’s performance is benefiting from the execution of the work at Hope Creek and Salem 2 which led to higher levels of capacity being available during the critical summer period.” PSEG Power realized a 150MW increase in the capacity of the Hope Creek nuclear facility. This is greater than the forecast increase of 125MW expected from the work associated with the unit’s uprate in capacity. PSEG Power also realized a 23MW increase in Salem 2’s capacity following the replacement of its steam generator earlier in the year versus a planned increase in capacity of 15MW.
PSEG Power anticipates fourth quarter results will continue to benefit from higher energy pricing locked in earlier. The improvement in margins, however, will be partially offset by planned fossil station maintenance programs, and partial reversal of most of the remaining mark-to-market gain ($0.01 per share) on positions booked earlier in the year. We have also incorporated October’s disappointing stock market performance into the value of the NDT fund for the full year 2008. As a result of the NDT related losses, the full year operating earnings guidance for PSEG Power has been adjusted to $1,010-$1,110 million from $1,040-$1,140 million.
PSE&G
PSE&G reported operating earnings of $97 million ($0.19 per share) for the third quarter of 2008 compared with operating earnings of $106 million ($0.21 per share) during the third quarter of 2007. PSE&G’s quarterly results reflect unfavorable weather-normalized declines in electric sales ($0.01 per share) and miscellaneous expenses ($0.01 per share).
Ralph LaRossa, president and chief operating officer of PSE&G, said he’s “extremely proud of PSE&G being named America’s most reliable electric utility by PA Consulting.” This is the third time in the last four years that the utility has received this recognition, and the seventh straight year that it has earned the ReliabilityOne Award for the Mid-Atlantic region. “This recognition underscores PSE&G’s longstanding commitment to deliver safe, reliable, and affordable service to the people and businesses who power New Jersey” LaRossa said “even during these difficult economic times.”
PSE&G received support from the Federal Energy Regulatory Commission (FERC) for its transmission-related capital program with the FERC’s approval for a modest increase in transmission rates effective October 1, 2008. PSE&G was granted a return on equity of 11.68% for its transmission investment. Earlier this year, PSE&G was granted an incentive return of 125 basis points on its planned investment in the Susquehanna to Roseland 500Kv transmission line. This line is expected to go into service at the end of 2012.
PSEG Energy Holdings
PSEG Energy Holdings reported operating earnings of $56 million ($0.11 per share) for the third quarter of 2008 versus operating earnings of $63 million ($0.12 per share) for the third quarter of 2007.
3
Holdings’ Global subsidiary recorded a $0.04 per share improvement in earnings as compared to the prior period. The improvement was the result of stronger production and increased spark spreads from Global’s 2,000MW of gas-fired Texas generating capacity ($0.01 per share) coupled with mark-to-market gains of $0.04 per share. These items more than offset the absence of income ($0.02 per share) from Chilquinta and Luz del Sur which were sold in the fourth quarter of 2007. Global’s third quarter earnings also benefited from a net decrease in financing costs ($0.02 per share) which more than offset a higher tax rate ($0.01 per share). Holdings’ Resources subsidiary recorded a $0.05 per share decline in quarter-over-quarter earnings. The reduction in earnings was the result of lower income due to the company’s decision to recognize a substantial charge in the second quarter related to the IRS tax challenge on certain lease investments, and a higher tax rate on its lease portfolio.
Holdings’ Global subsidiary closed on the sale of SAESA on July 24. The sale, which had a final equity value of $887 million plus the assumption of approximately $413 million of debt, resulted in an after-tax gain of $187 million which is reported in discontinued operations. PSEG Global’s after-tax proceeds amounted to approximately $600 million.
PSEG Energy Holdings’ operating earnings were expected to decline in 2008. However, the full year forecast of operating earnings for 2008 has been adjusted to reflect stronger than anticipated power markets in Texas. High natural gas prices and demand have more than offset the impact of added wind resources in West Texas on the dispatch of natural gas-fired generating assets. Results during the fourth quarter will also reflect the loss of income from the sale of Chilquinta and Luz del Sur, as well as a decline in income on Resources’ leveraged lease portfolio.
2009 Earnings
The fundamental drivers for PSEG continue to support growth in earnings for 2009 over 2008. This is primarily due to an anticipated improvement in margins at PSEG Power. PSEG, however, expects to experience some escalation in pension expense and financial costs as a result of stresses in the financial markets. PSEG Power is also facing a potential adjustment in one of its coal contracts. Ralph Izzo stated “we are working to mitigate the impact of these pressures through implementation of rigorous cost control measures and a reduction in capital expenditures. PSEG is currently expecting earnings for 2009 to come in at the lower half of our previously stated range of $3.05-$3.35 per share.”
Capital Spending
PSEG has reduced its forecast of capital expenditures for 2009 in response to volatility in the financial markets. The company’s spending forecast during this period has been reduced by $275-$325 million from previously disclosed amounts.
Other Events
PSEG, as of September 30, 2008, had $658 million of remaining authorization under its $750 million common stock repurchase program. The repurchase program was authorized in July 2008 to be executed over an 18-month period.
#######
4
FORWARD-LOOKING STATEMENT
Readers are cautioned that statements contained in this press release 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 rules that may adversely affect our operating results. |
| • | Any inability of our energy transmission and distribution businesses to obtain adequate and timely rate relief and/or regulatory approvals from federal and/or state regulators. |
| • | Changes in federal and/or 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. |
| • | 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 capital market performance of our decommissioning and defined benefit plan trust funds. |
| • | Changes in technology and/or 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 release. 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.
5
Attachment 1
PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED
Operating Earnings and Per Share Results by Subsidiary
(Unaudited)
|
| For the Quarters Ended |
| For the Nine Months Ended |
| |||||||||
|
| 2008 |
| 2007 |
| 2008 |
| 2007 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Earnings Results (in Millions) |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
PSEG Power |
| $ | 328 |
| $ | 338 |
| $ | 843 |
| $ | 744 |
| |
PSE&G |
|
| 97 |
|
| 106 |
|
| 284 |
|
| 299 |
| |
PSEG Energy Holdings |
|
|
|
|
|
|
|
|
|
|
|
|
| |
PSEG Global |
|
| 67 |
|
| 48 |
|
| 101 |
|
| 69 |
| |
PSEG Resources |
|
| (11 | ) |
| 15 |
|
| 24 |
|
| 46 |
| |
PSEG Energy Holdings |
|
| — |
|
| — |
|
| (1 | ) |
| (2 | ) | |
Total PSEG Energy Holdings |
|
| 56 |
|
| 63 |
|
| 124 |
|
| 113 |
| |
PSEG |
|
| (5 | ) |
| (10 | ) |
| (14 | ) |
| (43 | ) | |
Operating Earnings |
| $ | 476 |
| $ | 497 |
| $ | 1,237 |
| $ | 1,113 |
| |
Reconciling Items (a) |
|
| — |
|
| (7 | ) |
| (491 | ) |
| (7 | ) | |
Income from Continuing Operations |
| $ | 476 |
| $ | 490 |
| $ | 746 |
| $ | 1,106 |
| |
Discontinued Operations |
|
| 180 |
|
| 16 |
|
| 208 |
|
| 4 |
| |
PSEG Net Income |
| $ | 656 |
| $ | 506 |
| $ | 954 |
| $ | 1,110 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Fully Diluted Average Shares Outstanding (in Millions) |
|
| 508 |
|
| 509 |
|
| 509 |
|
| 508 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Per Share Results (Diluted) |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
PSEG Power |
| $ | 0.65 |
| $ | 0.66 |
| $ | 1.66 |
| $ | 1.46 |
| |
PSE&G |
|
| 0.19 |
|
| 0.21 |
|
| 0.56 |
|
| 0.59 |
| |
PSEG Energy Holdings |
|
|
|
|
|
|
|
|
|
|
|
|
| |
PSEG Global |
|
| 0.13 |
|
| 0.09 |
|
| 0.20 |
|
| 0.14 |
| |
PSEG Resources |
|
| (0.02 | ) |
| 0.03 |
|
| 0.05 |
|
| 0.09 |
| |
PSEG Energy Holdings |
|
| — |
|
| — |
|
| (0.01 | ) |
| (0.01 | ) | |
Total PSEG Energy Holdings |
|
| 0.11 |
|
| 0.12 |
|
| 0.24 |
|
| 0.22 |
| |
PSEG |
|
| (0.01 | ) |
| (0.02 | ) |
| (0.03 | ) |
| (0.08 | ) | |
Operating Earnings |
| $ | 0.94 |
| $ | 0.97 |
| $ | 2.43 |
| $ | 2.19 |
| |
Reconciling Items (a) |
|
| — |
|
| (0.01 | ) |
| (0.96 | ) |
| (0.01 | ) | |
Income from Continuing Operations |
| $ | 0.94 |
| $ | 0.96 |
| $ | 1.47 |
| $ | 2.18 |
| |
Discontinued Operations |
|
| 0.35 |
|
| 0.03 |
|
| 0.41 |
|
| 0.01 |
| |
PSEG Net Income |
| $ | 1.29 |
| $ | 0.99 |
| $ | 1.88 |
| $ | 2.19 |
| |
(a) See attachment 14 for details of items excluded from Continuing Operations to compute Operating Earnings.
Note 1:
Income from Continuing Operations includes preferred stock dividends relating to PSE&G of $1 million for the quarters ended September 30, 2008 and 2007.
Income from Continuing Operations includes preferred stock dividends relating to PSE&G of $3 million for the nine months ended September 30, 2008 and 2007.
Attachment 2
PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED
Consolidating Statements of Operations
(Unaudited, $ Millions)
|
| For the Quarter Ended September 30, 2008 |
| ||||||||||||||
|
|
| PSEG |
|
|
| OTHER (a) |
|
| PSEG |
|
| PSE&G |
| PSEG ENERGY |
| |
OPERATING REVENUES |
| $ | 3,718 |
|
| $ | (743 | ) | $ | 1,833 |
| $ | 2,274 |
| $ | 354 |
|
OPERATING EXPENSES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Energy Costs |
|
| 1,899 |
|
|
| (739 | ) |
| 904 |
|
| 1,521 |
|
| 213 |
|
Operation and Maintenance (c) |
|
| 610 |
|
|
| (13 | ) |
| 282 |
|
| 313 |
|
| 28 |
|
Depreciation and Amortization |
|
| 214 |
|
|
| 3 |
|
| 42 |
|
| 161 |
|
| 8 |
|
Taxes Other Than Income Taxes |
|
| 31 |
|
|
| — |
|
| — |
|
| 31 |
|
| — |
|
Total Operating Expenses |
|
| 2,754 |
|
|
| (749 | ) |
| 1,228 |
|
| 2,026 |
|
| 249 |
|
Income from Equity Method Investments |
|
| 8 |
|
|
| — |
|
| — |
|
| — |
|
| 8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING INCOME |
|
| 972 |
|
|
| 6 |
|
| 605 |
|
| 248 |
|
| 113 |
|
Other Income and Deductions |
|
| (12 | ) |
|
| (3 | ) |
| (16 | ) |
| — |
|
| 7 |
|
Interest Expense |
|
| (149 | ) |
|
| (7 | ) |
| (42 | ) |
| (82 | ) |
| (18 | ) |
Preferred Securities Dividends |
|
| (1 | ) |
|
| — |
|
| — |
|
| (1 | ) |
| — |
|
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES (b) |
|
| 810 |
|
|
| (4 | ) |
| 547 |
|
| 165 |
|
| 102 |
|
Income Tax Expense |
|
| (334 | ) |
|
| (1 | ) |
| (219 | ) |
| (68 | ) |
| (46 | ) |
INCOME (LOSS) FROM CONTINUING OPERATIONS |
|
| 476 |
|
|
| (5 | ) |
| 328 |
|
| 97 |
|
| 56 |
|
Discontinued Operations, net of tax |
|
| 180 |
|
|
| — |
|
| — |
|
| — |
|
| 180 |
|
NET INCOME (LOSS) |
| $ | 656 |
|
| $ | (5 | ) | $ | 328 |
| $ | 97 |
| $ | 236 |
|
Discontinued Operations, net of tax |
|
| (180 | ) |
|
| — |
|
| — |
|
| — |
|
| (180 | ) |
OPERATING EARNINGS (LOSS) |
| $ | 476 |
|
| $ | (5 | ) | $ | 328 |
| $ | 97 |
| $ | 56 |
|
|
| For the Quarter Ended September 30, 2007 |
| ||||||||||||||
|
|
| PSEG |
|
|
| OTHER (a) |
|
| PSEG |
|
| PSE&G |
| PSEG ENERGY |
| |
OPERATING REVENUES |
| $ | 3,347 |
|
| $ | (590 | ) | $ | 1,580 |
| $ | 2,106 |
| $ | 251 |
|
OPERATING EXPENSES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Energy Costs |
|
| 1,588 |
|
|
| (592 | ) |
| 712 |
|
| 1,341 |
|
| 127 |
|
Operation and Maintenance (c) |
|
| 559 |
|
|
| (8 | ) |
| 232 |
|
| 308 |
|
| 27 |
|
Write-down of Assets |
|
| 12 |
|
|
| — |
|
| — |
|
| — |
|
| 12 |
|
Depreciation and Amortization |
|
| 209 |
|
|
| 5 |
|
| 36 |
|
| 161 |
|
| 7 |
|
Taxes Other Than Income Taxes |
|
| 31 |
|
|
| — |
|
| — |
|
| 31 |
|
| — |
|
Total Operating Expenses |
|
| 2,399 |
|
|
| (595 | ) |
| 980 |
|
| 1,841 |
|
| 173 |
|
Income from Equity Method Investments |
|
| 30 |
|
|
| — |
|
| — |
|
| — |
|
| 30 |
|
OPERATING INCOME |
|
| 978 |
|
|
| 5 |
|
| 600 |
|
| 265 |
|
| 108 |
|
Other Income and Deductions |
|
| 12 |
|
|
| (3 | ) |
| 14 |
|
| 1 |
|
| — |
|
Interest Expense |
|
| (184 | ) |
|
| (19 | ) |
| (43 | ) |
| (85 | ) |
| (37 | ) |
Preferred Securities Dividends |
|
| (1 | ) |
|
| — |
|
| — |
|
| (1 | ) |
| — |
|
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES (b) |
|
| 805 |
|
|
| (17 | ) |
| 571 |
|
| 180 |
|
| 71 |
|
Income Tax (Expense) Benefit |
|
| (315 | ) |
|
| 7 |
|
| (233 | ) |
| (74 | ) |
| (15 | ) |
INCOME (LOSS) FROM CONTINUING OPERATIONS |
|
| 490 |
|
|
| (10 | ) |
| 338 |
|
| 106 |
|
| 56 |
|
Discontinued Operations, net of tax |
|
| 16 |
|
|
| — |
|
| 1 |
|
| — |
|
| 15 |
|
NET INCOME (LOSS) |
| $ | 506 |
|
| $ | (10 | ) | $ | 339 |
| $ | 106 |
| $ | 71 |
|
Discontinued Operations, net of tax |
|
| (16 | ) |
|
| — |
|
| (1 | ) |
| — |
|
| (15 | ) |
Reconciling Items, net of tax (d) |
|
| 7 |
|
|
| — |
|
| — |
|
| — |
|
| 7 |
|
OPERATING EARNINGS (LOSS) |
| $ | 497 |
|
| $ | (10 | ) | $ | 338 |
| $ | 106 |
| $ | 63 |
|
(a) | Primarily includes financing activities and donations at the parent and intercompany eliminations. |
(b) | Income from Continuing Operations before Income Taxes includes preferred stock dividends relating to PSE&G of $1 million for the quarters ended September 30, 2008 and 2007. |
(c) | Increase at PSE&G primarily due to increased SBC expenses due to increased collection of clause revenues. |
(d) | See attachment 14 for details of items excluded from Continuing Operations to compute Operating Earnings. |
Attachment 3
PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED
Consolidating Statements of Operations
(Unaudited, $ Millions)
|
|
| For the Nine Months Ended September 30, 2008 |
| |||||||||||||
|
|
| PSEG |
|
|
| OTHER (a) |
|
| PSEG |
|
| PSE&G |
| PSEG ENERGY |
| |
OPERATING REVENUES |
| $ | 10,060 |
|
| $ | (2,766 | ) | $ | 5,831 |
| $ | 6,750 |
| $ | 245 |
|
OPERATING EXPENSES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Energy Costs |
|
| 5,552 |
|
|
| (2,762 | ) |
| 3,360 |
|
| 4,527 |
|
| 427 |
|
Operation and Maintenance (c) |
|
| 1,857 |
|
|
| (27 | ) |
| 796 |
|
| 993 |
|
| 95 |
|
Depreciation and Amortization |
|
| 597 |
|
|
| 11 |
|
| 121 |
|
| 443 |
|
| 22 |
|
Taxes Other Than Income Taxes |
|
| 101 |
|
|
| — |
|
| — |
|
| 101 |
|
| — |
|
Total Operating Expenses |
|
| 8,107 |
|
|
| (2,778 | ) |
| 4,277 |
|
| 6,064 |
|
| 544 |
|
Income from Equity Method Investments |
|
| 27 |
|
|
| — |
|
| — |
|
| — |
|
| 27 |
|
OPERATING INCOME (LOSS) |
|
| 1,980 |
|
|
| 12 |
|
| 1,554 |
|
| 686 |
|
| (272 | ) |
Other Income and Deductions |
|
| (3 | ) |
|
| (8 | ) |
| (15 | ) |
| 6 |
|
| 14 |
|
Interest Expense |
|
| (448 | ) |
|
| (19 | ) |
| (125 | ) |
| (244 | ) |
| (60 | ) |
Preferred Securities Dividends |
|
| (3 | ) |
|
| — |
|
| — |
|
| (3 | ) |
| — |
|
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES (b) |
|
| 1,526 |
|
|
| (15 | ) |
| 1,414 |
|
| 445 |
|
| (318 | ) |
Income Tax (Expense) Benefit |
|
| (780 | ) |
|
| 1 |
|
| (571 | ) |
| (161 | ) |
| (49 | ) |
INCOME (LOSS) FROM CONTINUING OPERATIONS |
|
| 746 |
|
|
| (14 | ) |
| 843 |
|
| 284 |
|
| (367 | ) |
Discontinued Operations, net of tax |
|
| 208 |
|
|
| — |
|
| — |
|
| — |
|
| 208 |
|
NET INCOME (LOSS) |
| $ | 954 |
|
| $ | (14 | ) | $ | 843 |
| $ | 284 |
| $ | (159 | ) |
Discontinued Operations, net of tax |
|
| (208 | ) |
|
| — |
|
| — |
|
| — |
|
| (208 | ) |
Reconciling Items, net of tax (d) |
|
| 491 |
|
|
| — |
|
| — |
|
| — |
|
| 491 |
|
OPERATING EARNINGS (LOSS) |
| $ | 1,237 |
|
| $ | (14 | ) | $ | 843 |
| $ | 284 |
| $ | 124 |
|
|
| For the Nine Months Ended September 30, 2007 |
| ||||||||||||||
|
|
| PSEG |
|
|
| OTHER (a) |
|
| PSEG |
|
| PSE&G |
| PSEG ENERGY |
| |
OPERATING REVENUES |
| $ | 9,561 |
|
| $ | (2,448 | ) | $ | 5,034 |
| $ | 6,340 |
| $ | 635 |
|
OPERATING EXPENSES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Energy Costs |
|
| 4,885 |
|
|
| (2,446 | ) |
| 2,894 |
|
| 4,083 |
|
| 354 |
|
Operation and Maintenance (c) |
|
| 1,727 |
|
|
| (21 | ) |
| 711 |
|
| 947 |
|
| 90 |
|
Write-down of Assets |
|
| 12 |
|
|
| — |
|
| — |
|
| — |
|
| 12 |
|
Depreciation and Amortization |
|
| 587 |
|
|
| 11 |
|
| 104 |
|
| 449 |
|
| 23 |
|
Taxes Other Than Income Taxes |
|
| 104 |
|
|
| — |
|
| — |
|
| 104 |
|
| — |
|
Total Operating Expenses |
|
| 7,315 |
|
|
| (2,456 | ) |
| 3,709 |
|
| 5,583 |
|
| 479 |
|
Income from Equity Method Investments |
|
| 87 |
|
|
| — |
|
| — |
|
| — |
|
| 87 |
|
OPERATING INCOME |
|
| 2,333 |
|
|
| 8 |
|
| 1,325 |
|
| 757 |
|
| 243 |
|
Other Income and Deductions |
|
| 67 |
|
|
| (15 | ) |
| 57 |
|
| 9 |
|
| 16 |
|
Interest Expense |
|
| (549 | ) |
|
| (67 | ) |
| (119 | ) |
| (250 | ) |
| (113 | ) |
Preferred Securities Dividends |
|
| (3 | ) |
|
| — |
|
| — |
|
| (3 | ) |
| — |
|
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES (b) |
|
| 1,848 |
|
|
| (74 | ) |
| 1,263 |
|
| 513 |
|
| 146 |
|
Income Tax (Expense) Benefit |
|
| (742 | ) |
|
| 31 |
|
| (519 | ) |
| (214 | ) |
| (40 | ) |
INCOME (LOSS) FROM CONTINUING OPERATIONS |
|
| 1,106 |
|
|
| (43 | ) |
| 744 |
|
| 299 |
|
| 106 |
|
Discontinued Operations, net of tax |
|
| 4 |
|
|
| — |
|
| (8 | ) |
| — |
|
| 12 |
|
NET INCOME (LOSS) |
| $ | 1,110 |
|
| $ | (43 | ) | $ | 736 |
| $ | 299 |
| $ | 118 |
|
Discontinued Operations, net of tax |
|
| (4 | ) |
|
| — |
|
| 8 |
|
| — |
|
| (12 | ) |
Reconciling Items, net of tax (d) |
|
| 7 |
|
|
| — |
|
| — |
|
| — |
|
| 7 |
|
OPERATING EARNINGS (LOSS) |
| $ | 1,113 |
|
| $ | (43 | ) | $ | 744 |
| $ | 299 |
| $ | 113 |
|
(a) | Primarily includes financing activities and donations at the parent and intercompany eliminations. |
(b) | Income from Continuing Operations before Income Taxes includes preferred stock dividends relating to PSE&G of $3 million for the nine months ended September 30, 2008 and 2007. |
(c) | Increase at PSE&G primarily due to increased SBC expenses due to increased collection of clause revenues. |
(d) | See attachment 14 for details of items excluded from Continuing Operations to compute Operating Earnings. |
Attachment 4
PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED
Capitalization Schedule
(Unaudited, $ Millions)
|
| September 30, |
| December 31, | ||||
DEBT |
|
|
|
|
|
|
|
|
Commercial Paper and Loans |
| $ | 181 |
|
| $ | 65 |
|
Long-Term Debt (a) |
|
| 7,124 |
|
|
| 7,689 |
|
Securitization Debt (a) |
|
| 1,581 |
|
|
| 1,708 |
|
Project Level, Non-Recourse Debt (a) |
|
| 346 |
|
|
| 384 |
|
Total Debt |
|
| 9,232 |
|
|
| 9,846 |
|
|
|
|
|
|
|
|
|
|
SUBSIDIARY'S PREFERRED SECURITIES |
|
| 80 |
|
|
| 80 |
|
|
|
|
|
|
|
|
|
|
COMMON STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
Common Stock |
|
| 4,753 |
|
|
| 4,732 |
|
Treasury Stock |
|
| (579 | ) |
|
| (478 | ) |
Retained Earnings |
|
| 3,701 |
|
|
| 3,261 |
|
Accumulated Other Comprehensive Loss |
|
| (196 | ) |
|
| (216 | ) |
Total Common Stockholders' Equity |
|
| 7,679 |
|
|
| 7,299 |
|
Total Capitalization |
| $ | 16,991 |
|
| $ | 17,225 |
|
(a) Includes amounts due within one year
Note 1:
PSEG's credit agreements contain covenants that require PSEG's debt to capitalization ratio not to exceed 70.0% at any time.
This ratio is presented for the benefit of the investors and the related securities to which the covenants apply and is not intended as a financial performance or liquidity measure.
2008
The debt to capitalization ratio calculated under PSEG's credit agreements as of September 30, 2008 was 48.1%.
The ratio as calculated pursuant to these covenants excludes non-recourse project debt ($346 million) and securitization debt ($1.581 billion). It also includes capital lease obligations ($44 million) and certain other obligations such as guarantees and letters of credit ($62 million), excluding any letters of credit related to collateral posting on energy/commodity contracts. The calculation excludes the equity reduction ($164 million) from the funded status of the pension and benefit plans associated with FAS 158 "Employers' Accounting for Defined Pension and Other Post-Retirement Plans” and excludes the Accumulated Other Comprehensive Loss ($69 million) related to the mark-to-market of energy contracts.
2007
The debt to capitalization ratio calculated under PSEG's credit agreements as of December 31, 2007 was 49.9%.
The ratio as calculated pursuant to these covenants excludes non-recourse project debt ($384 million), securitization debt ($1.708 billion). It also includes capital lease obligations ($47 million) and certain other obligations such as guarantees and letters of credit ($55 million), excluding any letters of credit related to collateral posting on energy/commodity contracts. The calculation excludes the equity reduction ($167 million) from the funded status of the pension and benefit plans associated with FAS 158 “Employers’ Accounting for Defined Pension and Other Post-Retirement Plans” and excludes the Accumulated Other Comprehensive Loss ($250 million) related to the mark-to-market of energy contracts.
Attachment 5
PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited, $ Millions)
|
|
|
|
|
| For the Nine Months Ended September 30, | ||||||
|
| 2008 |
| 2007 | ||||
CASH FLOWS FROM OPERATING ACTIVITIES |
|
|
|
|
|
|
|
|
Net Income |
| $ | 954 |
|
| $ | 1,110 |
|
Adjustments to Reconcile Net Income to Net Cash Flows (a) |
|
|
|
|
|
|
|
|
From Operating Activities |
|
| 638 |
|
|
| 429 |
|
Net Cash Provided By Operating Activities |
|
| 1,592 |
|
|
| 1,539 |
|
|
|
|
|
|
|
|
|
|
NET CASH USED IN INVESTING ACTIVITIES |
|
| (459 | ) |
|
| (589 | ) |
|
|
|
|
|
|
|
|
|
NET CASH USED IN FINANCING ACTIVITIES |
|
| (1,284 | ) |
|
| (669 | ) |
Effect of Exchange Rate Change |
|
| — |
|
|
| 2 |
|
Net Increase (Decrease) in Cash and Cash Equivalents |
|
| (151 | ) |
|
| 283 |
|
Cash and Cash Equivalents at Beginning of Period |
|
| 380 |
|
|
| 100 |
|
Cash and Cash Equivalents at End of Period |
| $ | 229 |
|
| $ | 383 |
|
(a) Includes changes in working capital of ($117 million) and ($326 million) for 2008 and 2007, respectively.
Attachment 6
PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED
Quarter-to-Quarter EPS Reconciliation
September 30, 2008 vs. September 30, 2007
(Unaudited)
PSEG 3rd Quarter 2007 Net Income |
|
|
|
|
|
| $ | 0.99 |
|
Discontinued Operations (SAESA, Electroandes) |
|
|
|
|
|
|
| 0.03 |
|
PSEG 3rd Quarter 2007 Income from Continuing Operations |
|
|
|
|
|
| $ | 0.96 |
|
Reconciling Items (a) |
|
|
|
|
|
|
| (0.01 | ) |
PSEG 3rd Quarter 2007 Operating Earnings |
|
|
|
|
|
| $ | 0.97 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| B/(W | ) |
PSEG Power |
|
|
|
|
|
|
|
|
|
3rd Quarter 2007 |
|
|
| $ | 0.66 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Recontracting and Strong Markets |
| 0.12 |
|
|
|
|
|
|
|
Mark-to-Market (MTM) |
| (0.05 | ) |
|
|
|
|
|
|
Margin |
|
|
|
| 0.07 |
|
|
|
|
O&M |
|
|
|
| (0.06 | ) |
|
|
|
Depreciation, NDT and Other |
|
|
|
| (0.02 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
3rd Quarter 2008 |
|
|
| $ | 0.65 |
| $ | (0.01 | ) |
|
|
|
|
|
|
|
|
|
|
PSE&G |
|
|
|
|
|
|
|
|
|
3rd Quarter 2007 |
|
|
| $ | 0.21 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Electric Margin |
|
|
|
| (0.01 | ) |
|
|
|
Depreciation, Interest and O&M |
|
|
|
| (0.01 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
3rd Quarter 2008 |
|
|
| $ | 0.19 |
| $ | (0.02 | ) |
|
|
|
|
|
|
|
|
|
|
PSEG Energy Holdings |
|
|
|
|
|
|
|
|
|
3rd Quarter 2007 |
|
|
| $ | 0.12 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Global - Texas Generation Facilities - MTM $0.04, Operations $ 0.01 |
|
|
|
| 0.05 |
|
|
|
|
Global - Interest Expense |
|
|
|
| 0.02 |
|
|
|
|
Global - Earnings on Chilquinta & Luz |
|
|
|
| (0.02 | ) |
|
|
|
Global - Effective Tax Rate |
|
|
|
| (0.01 | ) |
|
|
|
Resources - Effective Tax Rate |
|
|
|
| (0.02 | ) |
|
|
|
Resources - Lease Income |
|
|
|
| (0.01 | ) |
|
|
|
Resources - Interest Expense |
|
|
|
| (0.01 | ) |
|
|
|
Resources - Other |
|
|
|
| (0.01 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
3rd Quarter 2008 |
|
|
| $ | 0.11 |
| $ | (0.01 | ) |
|
|
|
|
|
|
|
|
|
|
Public Service Enterprise Group |
|
|
|
|
|
|
|
|
|
3rd Quarter 2007 |
|
|
| $ | (0.02 | ) |
|
|
|
Interest |
|
|
|
| 0.01 |
|
|
|
|
3rd Quarter 2008 |
|
|
| $ | (0.01 | ) | $ | 0.01 |
|
|
|
|
|
|
|
|
|
|
|
PSEG 3rd Quarter 2008 Operating Earnings |
|
|
|
|
|
| $ | 0.94 |
|
PSEG 3rd Quarter 2008 Income from Continuing Operations |
|
|
|
|
|
| $ | 0.94 |
|
Discontinued Operations (SAESA, Bioenergie) |
|
|
|
|
|
|
| 0.35 |
|
PSEG 3rd Quarter 2008 Net Income |
|
|
|
|
|
| $ | 1.29 |
|
(a) See attachment 14 for details of items excluded from Continuing Operations to compute Operating Earnings.
Attachment 7
PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED
Year to Date EPS Reconciliation
September 30, 2008 vs. September 30, 2007
(Unaudited)
PSEG Net Income for the Nine Months Ended September 30, 2007 |
|
|
|
|
|
| $ | 2.19 |
|
Discontinued Operations (SAESA, Electroandes, Bioenergie, Lawrenceburg) |
|
|
|
|
|
|
| 0.01 |
|
PSEG Income from Continuing Operations for the Nine Months Ended September 30, 2007 |
|
| $ | 2.18 |
| ||||
Reconciling Items (a) |
|
|
|
|
|
|
| (0.01 | ) |
PSEG Operating Earnings for the Nine Months Ended September 30, 2007 |
|
|
|
|
|
| $ | 2.19 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| B/(W | ) |
PSEG Power |
|
|
|
|
|
|
|
|
|
Year to Date September 30, 2007 |
|
|
| $ | 1.46 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Recontracting and Strong Markets |
| 0.36 |
|
|
|
|
|
|
|
Mark-to-Market (MTM) |
| 0.03 |
|
|
|
|
|
|
|
Margin |
|
|
|
| 0.39 |
|
|
|
|
O&M |
|
|
|
| (0.10 | ) |
|
|
|
Depreciation, Interest, NDT and Other |
|
|
|
| (0.09 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Year to Date September 30, 2008 |
|
|
| $ | 1.66 |
| $ | 0.20 |
|
|
|
|
|
|
|
|
|
|
|
PSE&G |
|
|
|
|
|
|
|
|
|
Year to Date September 30, 2007 |
|
|
| $ | 0.59 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weather - Gas |
|
|
|
| (0.02 | ) |
|
|
|
Gas Margin |
|
|
|
| (0.01 | ) |
|
|
|
Transmission Margin |
|
|
|
| (0.01 | ) |
|
|
|
Electric Margin |
|
|
|
| (0.01 | ) |
|
|
|
O&M |
|
|
|
| (0.02 | ) |
|
|
|
Depreciation and Other |
|
|
|
| (0.02 | ) |
|
|
|
Effective Tax Rate |
|
|
|
| 0.06 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year to Date September 30, 2008 |
|
|
| $ | 0.56 |
| $ | (0.03 | ) |
|
|
|
|
|
|
|
|
|
|
PSEG Energy Holdings |
|
|
|
|
|
|
|
|
|
Year to Date September 30, 2007 |
|
|
| $ | 0.22 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Global - Texas Generation Facilities - Operations $0.07, MTM $ 0.02 |
|
|
|
| 0.09 |
|
|
|
|
Global - Interest Expense |
|
|
|
| 0.07 |
|
|
|
|
Global - Effective Tax Rate |
|
|
|
| 0.02 |
|
|
|
|
Global - Earnings on Chilquinta & Luz |
|
|
|
| (0.08 | ) |
|
|
|
Global - Other Operations |
|
|
|
| (0.02 | ) |
|
|
|
Global - Gain on Sale of Tracy in 2007 |
|
|
|
| (0.01 | ) |
|
|
|
Global - Konya-Ilgin Settlement in 2007 & Other Income |
|
|
|
| (0.01 | ) |
|
|
|
Resources - Lease Income |
|
|
|
| (0.02 | ) |
|
|
|
Resources - Other |
|
|
|
| (0.02 | ) |
|
|
|
Resources - Interest Expense |
|
|
|
| (0.01 | ) |
|
|
|
Resources - Effective Tax Rate |
|
|
|
| 0.01 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year to Date September 30, 2008 |
|
|
| $ | 0.24 |
| $ | 0.02 |
|
|
|
|
|
|
|
|
|
|
|
Public Service Enterprise Group |
|
|
|
|
|
|
|
|
|
Year to Date September 30, 2007 |
|
|
| $ | (0.08 | ) |
|
|
|
Interest |
|
|
|
| 0.05 |
|
|
|
|
Year to Date September 30, 2008 |
|
|
| $ | (0.03 | ) | $ | 0.05 |
|
|
|
|
|
|
|
|
|
|
|
PSEG Operating Earnings for the Nine Months Ended September 30, 2008 |
|
|
|
|
|
| $ | 2.43 |
|
Reconciling Items (a) |
|
|
|
|
|
|
| (0.96 | ) |
PSEG Income from Continuing Operations for the Nine Months Ended September 30, 2008 |
|
| $ | 1.47 |
| ||||
Discontinued Operations (SAESA, Bioenergie) |
|
|
|
|
|
|
| 0.41 |
|
PSEG Net Income for the Nine Months Ended September 30, 2008 |
|
|
|
|
|
| $ | 1.88 |
|
(a) See attachment 14 for details of items excluded from Continuing Operations to compute Operating Earnings.
Attachment 8
PSEG Power
Generation Measures
(Unaudited)
|
| GWhr Breakdown |
|
|
| GWhr Breakdown |
| ||||||
|
|
|
|
|
| Nine Months Ended |
| ||||||
|
| 2008 |
|
| 2007 |
|
|
| 2008 |
| 2007 | ||
Nuclear - NJ |
| 5,480 |
|
| 5,143 |
|
|
| 14,889 |
|
| 14,657 |
|
Nuclear - PA |
| 2,148 |
|
| 2,266 |
|
|
| 7,035 |
|
| 7,166 |
|
Total Nuclear |
| 7,628 |
|
| 7,409 |
|
|
| 21,924 |
|
| 21,823 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fossil - Coal - NJ |
| 1,499 |
|
| 1,579 |
|
|
| 3,673 |
|
| 3,617 |
|
Fossil - Coal - PA |
| 1,483 |
|
| 1,566 |
|
|
| 4,534 |
|
| 4,241 |
|
Fossil - Coal - CT |
| 789 |
|
| 715 |
|
|
| 2,179 |
|
| 2,194 |
|
Total Coal |
| 3,771 |
|
| 3,860 |
|
|
| 10,386 |
|
| 10,052 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fossil - Oil & Natural Gas - NJ |
| 3,139 |
|
| 2,837 |
|
|
| 8,284 |
|
| 6,051 |
|
Fossil - Oil & Natural Gas - NY |
| 996 |
|
| 1,126 |
|
|
| 2,182 |
|
| 2,539 |
|
Fossil - Oil & Natural Gas - CT |
| 9 |
|
| 85 |
|
|
| 105 |
|
| 447 |
|
Total Oil & Natural Gas |
| 4,144 |
|
| 4,048 |
|
|
| 10,571 |
|
| 9,037 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fossil - Pumped Storage |
| (41 | ) |
| (36 | ) |
|
| (110 | ) |
| (105 | ) |
|
| 15,502 |
|
| 15,281 |
|
|
| 42,771 |
|
| 40,807 |
|
|
| % Generation by Fuel Type |
|
|
| % Generation by Fuel Type |
| ||||||
|
|
|
|
|
| Nine Months Ended |
| ||||||
|
| 2008 |
|
| 2007 |
|
|
| 2008 |
| 2007 | ||
Nuclear - NJ |
| 35% |
|
| 33% |
|
|
| 35% |
|
| 36% |
|
Nuclear - PA |
| 14% |
|
| 15% |
|
|
| 16% |
|
| 17% |
|
Total Nuclear |
| 49% |
|
| 48% |
|
|
| 51% |
|
| 53% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fossil - Coal - NJ |
| 10% |
|
| 10% |
|
|
| 8% |
|
| 10% |
|
Fossil - Coal - PA |
| 9% |
|
| 10% |
|
|
| 11% |
|
| 10% |
|
Fossil - Coal - CT |
| 5% |
|
| 5% |
|
|
| 5% |
|
| 5% |
|
Total Coal |
| 24% |
|
| 25% |
|
|
| 24% |
|
| 25% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fossil - Oil & Natural Gas - NJ |
| 20% |
|
| 19% |
|
|
| 20% |
|
| 15% |
|
Fossil - Oil & Natural Gas - NY |
| 7% |
|
| 7% |
|
|
| 5% |
|
| 6% |
|
Fossil - Oil & Natural Gas - CT |
| 0% |
|
| 1% |
|
|
| 0% |
|
| 1% |
|
Total Oil & Natural Gas |
| 27% |
|
| 27% |
|
|
| 25% |
|
| 22% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fossil - Pumped Storage |
| 0% |
|
| 0% |
|
|
| 0% |
|
| 0% |
|
|
| 100% |
|
| 100% |
|
|
| 100% |
|
| 100% |
|
Attachment 9
PUBLIC SERVICE ELECTRIC & GAS
Retail Sales and Revenues
(Unaudited)
September 30, 2008
Electric Sales and Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales (millions kwh) |
|
| Quarter |
| Change vs. |
|
| Nine Months |
| Change vs. |
|
|
Residential |
|
| 4,332 |
| -1.6% |
|
| 10,638 |
| -1.5% |
|
|
Commercial |
|
| 6,770 |
| -0.2% |
|
| 18,759 |
| 0.1% |
|
|
Industrial |
|
| 1,383 |
| -5.0% |
|
| 3,926 |
| -5.1% |
|
|
Street Lighting |
|
| 82 |
| 0.6% |
|
| 264 |
| 1.0% |
|
|
Interdepartmental |
|
| 4 |
| -1.0% |
|
| 10 |
| -2.7% |
|
|
Total |
|
| 12,571 |
| -1.2% |
|
| 33,597 |
| -1.0% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue (in millions) |
|
|
|
|
|
|
|
|
|
|
|
|
Residential |
| $ | 762 |
| 8.9% |
| $ | 1,694 |
| 8.9% |
|
|
Commercial |
|
| 916 |
| 5.5% |
|
| 2,176 |
| 7.7% |
|
|
Industrial |
|
| 112 |
| 1.3% |
|
| 274 |
| 2.8% |
|
|
Street Lighting |
|
| 19 |
| 8.0% |
|
| 57 |
| 6.2% |
|
|
Other Operating Revenues |
|
| 131 |
| 25.3% |
|
| 344 |
| 31.0% |
|
|
Total |
| $ | 1,940 |
| 7.7% |
| $ | 4,545 |
| 9.3% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weather Data |
|
| Quarter |
| Change vs. |
|
| Nine Months |
| Change vs. |
|
|
THI Hours - Actual |
|
| 10,130 |
| -3.9% |
|
| 14,137 |
| -2.1% |
|
|
THI Hours - Normal |
|
| 10,690 |
|
|
|
| 14,560 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attachment 10
PUBLIC SERVICE ELECTRIC & GAS
Retail Sales and Revenues
(Unaudited)
September 30, 2008
Gas Sold and Transported
Sales (millions therms) |
| Quarter |
| Change vs. |
| Nine Months |
| Change vs. | ||||
Residential Sales |
|
| 97 |
| -3.0% |
|
| 926 |
| -7.3% | ||
Commercial - Firm Sales |
|
| 38 |
| -6.7% |
|
| 338 |
| -9.4% | ||
Commercial - Interr. & Cogen |
|
| 13 |
| 58.3% |
|
| 37 |
| 24.0% | ||
Industrial - Firm Sales |
|
| 3 |
| -0.5% |
|
| 27 |
| -8.3% | ||
Industrial - Interr. & Cogen |
|
| 47 |
| -15.8% |
|
| 151 |
| 41.3% | ||
Interdepartmental |
|
| — |
| 142.0% |
|
| 1 |
| -27.7% | ||
Total |
|
| 198 |
| -4.8% |
|
| 1,480 |
| -3.9% | ||
Gas Transported - Firm Sales |
|
| 50 |
| -2.2% |
|
| 310 |
| -1.3% | ||
Gas Transported - Non-Firm |
|
| 254 |
| -8.7% |
|
| 641 |
| -2.2% | ||
Revenue (in millions) |
|
|
|
|
|
|
|
|
|
| ||
Residential Sales |
| $ | 89 |
| -3.0% |
| $ | 849 |
| -7.3% | ||
Commercial - Firm Sales |
|
| 48 |
| 43.6% |
|
| 368 |
| 10.0% | ||
Commercial - Interr. & Cogen |
|
| 15 |
| 144.0% |
|
| 42 |
| 59.5% | ||
Industrial - Firm Sales |
|
| 4 |
| 56.5% |
|
| 29 |
| 10.9% | ||
Industrial - Interr. & Cogen |
|
| 51 |
| 28.0% |
|
| 167 |
| 93.1% | ||
Other Operating Revenues |
|
| 32 |
| -3.3% |
|
| 96 |
| -5.1% | ||
Total |
| $ | 239 |
| 15.5% |
| $ | 1,551 |
| 4.0% | ||
Gas Transported |
|
| 95 |
| -3.0% |
|
| 653 |
| -5.3% | ||
Weather Data |
| Quarter |
| Change vs. |
| Nine Months |
| Change vs. | ||
Degree Days - Actual |
| 21 |
| -27.6% |
| 2,918 |
| -8.5% | ||
Degree Days - Normal |
| 34 |
|
|
| 3,145 |
|
| ||
Attachment 11
PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED
Statistical Measures
(Unaudited)
|
| For the Quarters Ended |
| For the Nine Months Ended | ||||||||
|
| 2008 |
| 2007 |
| 2008 |
| 2007 | ||||
Weighted Average Common Shares Outstanding (000's) |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
| 507,724 |
|
| 508,543 |
|
| 508,233 |
|
| 507,206 |
Diluted |
|
| 508,326 |
|
| 509,090 |
|
| 508,890 |
|
| 507,966 |
Stock Price at End of Period |
|
|
|
|
|
|
| $ | 32.79 |
| $ | 44.00 |
Dividends Paid per Share of Common Stock |
| $ | 0.3225 |
| $ | 0.2925 |
| $ | 0.9675 |
| $ | 0.8775 |
Dividend Payout Ratio* |
|
|
|
|
|
|
|
| 42.6% |
|
| 46.9% |
Dividend Yield |
|
|
|
|
|
|
|
| 3.8% |
|
| 2.6% |
Price/Earnings Ratio* |
|
|
|
|
|
|
|
| 11.0 |
|
| 17.9 |
Rate of Return on Average Common Equity* |
|
|
|
|
|
|
|
| 13.3% |
|
| 17.8% |
Book Value per Common Share |
|
|
|
|
|
|
| $ | 15.17 |
| $ | 14.37 |
Market Price as a Percent of Book Value |
|
|
|
|
|
|
|
| 216% |
|
| 306% |
Total Shareholder Return |
|
| -18.9% |
|
| 0.9% |
|
| -31.7% |
|
| 35.4% |
* | Calculation based on Operating Earnings for 12 month period ended |
Attachment 12
PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED
Non-Trading Mark-to-Market
(Unaudited)
September 30, 2008
2008 Non-Trading Mark-to-Market
Energy Positions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| In Millions After-Tax |
|
| Q1 |
|
| Q2 |
|
| Q3 |
|
| Year-to-Date |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Power |
| $ | 2.7 |
| $ | 27.1 |
| $ | (20.0 | ) | $ | 9.8 |
|
| Holdings |
|
| 1.8 |
|
| (13.1 | ) |
| 31.5 |
|
| 20.2 |
|
| Total |
| $ | 4.5 |
| $ | 14.0 |
| $ | 11.5 |
| $ | 30.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| EPS Impact |
|
| Q1 |
|
| Q2 |
|
| Q3 |
|
| Year-to-Date |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Power |
| $ | 0.01 |
| $ | 0.05 |
| $ | (0.04 | ) | $ | 0.02 |
|
| Holdings |
|
| — |
|
| (0.02 | ) |
| 0.06 |
|
| 0.04 |
|
| Total |
| $ | 0.01 |
| $ | 0.03 |
| $ | 0.02 |
| $ | 0.06 |
|
2007 Non-Trading Mark-to-Market
Energy Positions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| In Millions After-Tax |
|
| Q1 |
|
| Q2 |
|
| Q3 |
|
| Year-to-Date |
|
| Power |
| $ | (0.6 | ) | $ | (9.5 | ) | $ | 4.4 |
| $ | (5.7 | ) |
| Holdings |
|
| (19.0 | ) |
| 16.4 |
|
| 13.2 |
|
| 10.6 |
|
| Total |
| $ | (19.6 | ) | $ | 6.9 |
| $ | 17.6 |
| $ | 4.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| EPS Impact |
|
| Q1 |
|
| Q2 |
|
| Q3 |
|
| Year-to-Date |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Power |
| $ | — |
| $ | (0.02 | ) | $ | 0.01 |
| $ | (0.01 | ) |
| Holdings |
|
| (0.04 | ) |
| 0.03 |
|
| 0.03 |
|
| 0.02 |
|
| Total |
| $ | (0.04 | ) | $ | 0.01 |
| $ | 0.04 |
| $ | 0.01 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attachment 13
PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED
NDT Imapcts
(Unaudited)
September 30, 2008
2008 NDT Fund Activity
In Millions |
| Q1 |
| Q2 |
| Q3 |
| YTD |
| ||||
Net Gains, Interest & Dividends |
| $ | 29.6 |
| $ | 35.8 |
| $ | 47.7 |
| $ | 113.1 |
|
Other Than Temporarily Impaired (OTTI) |
|
| (37.6 | ) |
| (32.7 | ) |
| (65.0 | ) |
| (135.3 | ) |
Accretion, Depreciation & Other |
| $ | (3.7 | ) | $ | (5.9 | ) | $ | (1.8 | ) | $ | (11.4 | ) |
Net Pre-tax |
|
| (11.7 | ) |
| (2.8 | ) |
| (19.1 | ) |
| (33.6 | ) |
2008 EPS Impact |
| $ | (0.01 | ) | $ | (0.01 | ) | $ | (0.02 | ) | $ | (0.04 | ) |
2007 NDT Fund Activity
In Millions |
| Q1 |
| Q2 |
| Q3 |
| YTD |
| ||||
Net Gains, Interest & Dividends |
| $ | 28.7 |
| $ | 25.9 |
| $ | 24.1 |
| $ | 78.7 |
|
Other Than Temporarily Impaired (OTTI) |
|
| (10.0 | ) |
| (14.0 | ) |
| (16.0 | ) |
| (40.0 | ) |
Accretion, Depreciation & Other |
| $ | (7.8 | ) | $ | (7.1 | ) | $ | (6.4 | ) | $ | (21.3 | ) |
Net Pre-tax |
|
| 10.9 |
|
| 4.8 |
|
| 1.7 |
|
| 17.4 |
|
2007 EPS Impact |
| $ | 0.01 |
| $ | 0.01 |
| $ | 0.00 |
| $ | 0.02 |
|
Attachment 14
PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED
Reconciling Items Excluded from Continuing Operations to Compute Operating Earnings
(Unaudited)
|
| For the Quarters Ended |
|
| For the Nine Months Ended |
| |||||||||
Pro-forma Adjustments |
| 2008 |
| 2007 |
| 2008 |
| 2007 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
| Earnings Impact (in Millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
Lease Transaction Reserves, net of tax |
| $ | — |
| $ | — |
| $ | (490 | ) | $ | — |
| ||
Loss from write-down of Turboven, net of tax |
|
| — |
|
| (7 | ) |
| — |
|
| (7 | ) | ||
Premium on Bond Redemption, net of tax |
|
| — |
|
| — |
|
| (1 | ) |
| — |
| ||
Total Pro-forma to Operating Earnings |
| $ | — |
| $ | (7 | ) | $ | (491 | ) | $ | (7 | ) | ||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
Fully Diluted Average Shares Outstanding (in Millions) |
|
| 508 |
|
| 509 |
|
| 509 |
|
| 508 |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
| Per Share Impact (Diluted) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
Lease Transaction Reserves, net of tax |
| $ | — |
| $ | — |
| $ | (0.96 | ) | $ | — |
| ||
Loss from write-down of Turboven, net of tax |
|
| — |
|
| (0.01 | ) |
| — |
|
| (0.01 | ) | ||
Premium on Bond Redemption, net of tax |
|
| — |
|
| — |
|
| — |
|
| — |
| ||
Total Pro-forma to Operating Earnings |
| $ | — |
| $ | (0.01 | ) | $ | (0.96 | ) | $ | (0.01 | ) | ||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||