 Exhibit 99 We have the energy to make things better … for you, for our investors and for our stakeholders. |
 2 Forward Looking Statement |
 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 slide in this presentation includes 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. |
 2013 Conference Agenda Presentation Presenter Welcome and Introductions Kathleen Lally PSEG Ralph Izzo PSE&G Ralph LaRossa PSEG Energy Holdings Randall Mehrberg Q&A Session Break PSEG Power William Levis Power ER&T Shahid Malik Q&A Session Financial Review & Outlook Caroline Dorsa Summary Ralph Izzo Q&A Session Conference Conclusion 4 |
 PSEG INTRODUCTION & OVERVIEW Ralph Izzo CHAIRMAN, PRESIDENT AND CHIEF EXECUTIVE OFFICER |
 6 PSEG Strategy Leveraging the strength of PSEG’s balance sheet to invest primarily in our stable, regulated business in ways that meet customer needs and state goals as we protect the upside of the merchant business and provide growth for our shareholders |
 PSEG met 2012’s challenges with our strong platform of assets ASSETS AND OPERATING EARNINGS ARE FOR THE YEAR ENDED 12/31/2012. ENERGY HOLDINGS INCLUDES PARENT. SEE PAGE A FOR ITEMS EXCLUDED FROM INCOME FROM CONTINUING OPERATIONS TO RECONCILE TO OPERATING EARNING. Electric & Gas Delivery and Transmission Regional Wholesale Energy Renewable Investments PSE&G positioned to meet NJ’s energy policy and economic growth objectives with an investment program exceeding $10 billion through 2017 PSEG Power’s low-cost, base load and load following fleet is geographically well positioned and environmentally responsible PSEG Energy Holdings positioned to pursue attractive renewable generation and develop new business opportunities Assets $19.2B Operating Earnings $528M Assets $11.0B Operating Earnings $644M Assets $1.5B Operating Earnings $64M 7 |
 8 PSEG – 2012 Highlights 2012 Earnings in-line with guidance • Achieved operating earnings of $2.44 per share, at the high end of guidance range of $2.25-$2.50, including storm-related costs at PSE&G • PSE&G represented 43% of consolidated operating earnings with growth in transmission Operational excellence PSEG disciplined capital investment • Key regulatory approvals received for major transmission projects • BPU decisions pending on Solar4All Extension and Solar Loan III • Power added 400 MW of new peakers in time to respond to summer demand • Holdings added 40 MW of new solar capacity • Record output from CCGTs, continued strong production from Nuclear, and Power’s control of O&M supported results • PSE&G recognized for reliability: National ReliabilityOne Excellence Award, Mid-Atlantic Reliability Award, and Award for Outstanding Response to a Major Outage Event; as well as EEI’s Emergency Response Award • Restored service to 2.1 million customers in a two-week period of time in the aftermath of Superstorm Sandy and the Nor’easter that followed • Extension of major labor contracts |
 9 2013 Operating Earnings Guidance $2.74 $2.44 $2.25 - $2.50 E 2011 Operating Earnings* 2012 Operating Earnings* 2013 Guidance * SEE PAGE A FOR ITEMS EXCLUDED FROM INCOME FROM CONTINUING OPERATIONS TO RECONCILE TO OPERATING EARNINGS. E = ESTIMATE. |
 10 2013 Operating Earnings * *SEE PAGE A FOR ITEMS EXCLUDED FROM INCOME FROM CONTINUING OPERATIONS TO RECONCILE TO OPERATING EARNINGS; ALL PERIODS REFLECT TEXAS IN DISCONTINUED OPERATIONS. E=ESTIMATE. Investment in the regulated business has changed the earnings mix Our 2009-2013 investment focus has brought us to a 50/50 mix for 2013 PSE&G’s 2013-2017 Energy Strong Program and ongoing transmission investments will support continued growth in PSE&G’s earnings Percent of Operating Earnings Contribution by Subsidiary |
 11 PSEG Focus Operational excellence and disciplined investment helped offset the earnings impact of lower energy prices 2008 2012 PSEG Focus ($ millions, except as noted) SEE PAGE A FOR ITEMS EXCLUDED FROM INCOME FROM CONTINUING OPERATIONS TO RECONCILE TO OPERATING EARNINGS. (1) PLANNED COMPOUND ANNUAL GROWTH RATE 2008- 2012.(2) ACTUAL COMPOUND ANNUAL GROWTH RATE 2008-2012. |
     12 SuperStorm Sandy met by an exceptional response The storm affected PSE&G and Power |
 13 PSEG Capital Spending focused on growth PSEG 2013-2015E Capital Spending* $6.1 Billion by Subsidiary PSEG 2013-2015E Capital Spending* $6.1 Billion Growth / Environmental / Maintenance E = ESTIMATE; CAPITAL EXCLUDES IDC AND AFUDC. *THIS FORECAST DOES NOT REFLECT THE IMPACT OF NEW PROPOSALS RECENTLY FILED WITH THE NJBPU. B |
 14 What’s Next: PSEG’s Capital Spending expansion opportunity directed toward growth in regulated business with ~ 25% growth in planned spending Potential PSEG 2013-2015E Capital Spending* $7.6 Billion by Subsidiary Potential PSEG 2013-2015E Capital Spending* $7.6 Billion Growth / Environmental / Maintenance E = ESTIMATE; CAPITAL EXCLUDES IDC AND AFUDC. |
 15 PSE&G’s Energy Strong Capital Program addresses new reality • New $3.9 Billion Infrastructure Program filed with the NJBPU to strengthen PSE&G’s electric and gas system focusing on hardening and resiliency • Plan to invest an additional $1.5 Billion in Transmission grid over the ten-year period • PSE&G’s Infrastructure proposal includes: • Protecting 40 utility installations from severe storms ($1.7 Billion) • Making the electric grid smarter and easier to repair ($454 Million) • Adding backup distribution lines and system redundancies ($415 Million) • Undergrounding 20 miles of overhead distribution lines ($60 Million) • Modernizing the gas distribution system ($1.1 Billion) • Better protection for homes and businesses during severe weather and improved day to day system reliability • Proposed filing creates ~5,800 jobs and stimulates economic activity for New Jersey businesses |
 16 PSEG Power value advantaged by asset diversity, fuel flexibility and location Fuel Diversity* Total MW: 13,226 Energy Produced* Total GWh: 52,511 Energy Market Served* Total MW: 13,226 *2012 **INCLUDES NJ UNITS THAT FUEL SWITCH TO GAS. |
 17 • 2.2% (forecast³) • $12,600 • $5,000 4 • $6,900 5 • $700 5 • 1.4% • 30.4TWh • $290 • $12-$15 2015E • 0.8% (actual²) • $9,000 • $2,500 • $5,900 • $600 • 1.7% • 29.8TWh • $240 • $0 2012 Where we’re going • 2.4% (planned¹) • $6,800 • $866 • $5,900 • $0 • 1.6% • 29.3TWh • $0 • $0 • O&M Growth per year • PSE&G Rate Base Transmission E&G Distribution EMP • EFORd Rate - CCGT • Nuclear Generation • Holdings Solar Investment • LIPA Earnings PSEG Focus ($ millions, except as noted) 2008 (1) Planned compound annual growth rate 2008-2012. (2) Actual compound annual growth rate 2008-2012. (3) Two-year compound annual growth rate from 2013. (4) Includes additional Transmission hardening. (5) Includes proposed filings: EE4A, SL3, S4Ae, and ES programs. . E = ESTIMATE. . |
 18 Balance Sheet Strengthened PSEG has reduced risk PSEG Total Capitalization 2009 2012 Power Power PSE&G PSE&G Equity 55% Debt 45% Equity 59% Debt 41% 57% 43% 55% 45% 70% 30% 51% 49% |
 19 Using PSEG’s balance sheet strength to finance growth in the regulated enterprise without equity issuance PSEG Total Capitalization 2012 2015E* * E = ESTIMATE; INCLUDES THE FOLLOWING PROPOSED FILINGS: EE4A, SL3, S4AE, ENERGY STRONG (ES) AND TRANSMISSION HARDENING. |
 20 PSEG Annual Dividend A long history of growth and returning cash to shareholders *2013 PAYOUT RATIO REFLECTS THE MIDPOINT OF 2013 OPERATING EARNINGS GUIDANCE. **INDICATED ANNUAL RATE. |
 21 Value Proposition PSEG is positioned to expand its investment in PSE&G projects that provide reasonable, risk adjusted returns, in ways that meet customer needs and state goals, given strong cash flow of Power and growing cash contribution from PSE&G. PSEG will maintain a strong financial profile that provides the opportunity to achieve our growth objectives and maintains our track record of returning cash to shareholders. |
 PSE&G PRESIDENT AND CHIEF OPERATING OFFICER Ralph LaRossa |
 23 PSE&G strategy Building a sustainable platform that balances reliability, customer rates and public policy to ensure growth at reasonable returns |
 24 PSE&G is the largest electric and gas distribution and transmission utility company in New Jersey * WEATHER NORMALIZED-ESTIMATED ANNUAL GROWTH PER YEAR OVER FORECAST PERIOD. ** TRANSMISSION LOAD GROWTH CAGR UTILIZES 2007 AS BASE YEAR. *** SPECIFIC PROJECTS APPROVED FOR INCENTIVE RATE TREATMENT WITH ADDITIONAL ROE. Electric Gas Customers Growth (2008 – 2012) 2.2 Million 0.6% 1.8 Million 0.6% Electric Sales and Gas Sold and Transported 41,641 GWh 3,397 M Therms Projected Annual Load Growth (2013 – 2015) 0.7%* 0.2%* Historical Annual Peak Load Growth Transmission (2008 – 2012) 0.4%** Projected Annual Load Growth Transmission (2013 – 2015) 1.4% Sales Mix Residential 33% 60% Commercial 57% 36% Industrial 10% 4% Transmission Electric Gas Approved Rate of Return 11.68% ROE*** 10.3% ROE 10.3% ROE Renewables and Energy Efficiency Approved Programs 2009-2012 Total Program Plan Solar Loan 67 MW 81 MW Solar 4 All 74 MW 80 MW Energy Efficiency Annual Electric savings 160 GWh 200 GWh Energy Efficiency Annual Gas savings 5M Therms 7M Therms Electric Territory Gas Territory |
 25 National reliability award winner and recognized for emergency response during Hurricane Irene |
 26 During SuperStorm Sandy strong winds, heavy rainfall and storm surges caused significant damage to our infrastructure |
    27 PSE&G brought in more than 4,000 contractors and mutual aid workers at the height of restoration efforts |
 28 PSE&G’s response to customer outages during recent major events Restoration response incorporated lessons learned from Hurricane Irene Cumulative Customers Restored |
 29 PSE&G’s operating earnings grew ~10%* with increased investment, cost control and supportive rate mechanisms * COMPOUND ANNUAL GROWTH RATE SEE SLIDE A FOR ITEMS EXCLUDED FROM INCOME FROM CONTINUING OPERATIONS TO RECONCILE TO OPERATING EARNINGS. |
 30 Growth in rate base is driven by investments with favorable recovery mechanisms PSE&G Rate Base PSE&G’s rate base has grown ~7% annualized with a focus on meeting the State’s goals and customers’ needs |
 31 Represents ~28% of rate base in 2012 Overall, Transmission has delivered on planned spending PSE&G’s Transmission Capital Expenditures 0 200 400 600 800 1,000 1,200 2009 2009 Plan Actual 2010 2010 Plan Actual 2011 2011 Plan Actual 2012 2012 Plan Actual Remaining Transmission Susquehanna -Roseland North East Grid North Central Reliability Mickelton-Gloucester -Camden Burlington-Camden |
 32 Providing solutions for New Jersey’s energy and economic development goals ($ Millions) Approval Date Forecast Amount* Spending Thru 2012 Remaining Spending Renewables Solar Loan I & II April 2008/ November 2009 $243 $209 34 Solar 4 All July 2009 456 437 19 Energy Efficiency Carbon Abatement December 2008 45 45 - Energy Efficiency Economic Stimulus July 2009 161 156 5 Demand Response July 2009 35 27 8 Energy Efficiency Economic Stimulus Extension July 2011 95 14 81 Distribution NJ Capital Infrastructure Program 1 (CIP 1) April 2009 702 702 - NJ Capital Infrastructure Program 2 (CIP 2) July 2011 273 253 20 Total $2,010 $1,843 $167 * THIS FORECAST DOES NOT REFLECT THE IMPACT OF NEW PROPOSALS RECENTLY FILED WITH THE NJBPU |
 33 Focus on controlling O&M allows us to earn our authorized return * EXCLUDES REGULATORY CLAUSES ** INCLUDES $40M IMPACT FROM SUPERSTORM SANDY IN 2012 E = ESTIMATE |
 34 PSE&G’s capital program will continue to be focused on delivering energy solutions to meet New Jersey’s public policy * PROPOSED FILINGS INCLUDE EE4A, SL3, S4AE, AND ENERGY STRONG (ES) E = ESTIMATE |
 35 2013-2017 proposed investment plan would grow our current capital plan by up to 50% 2013-2017E Capital Expenditures Existing Plan $6.9 Billion Existing Plan and Proposed Filings $10.6 Billion * * E = ESTIMATE |
 36 PSE&G’s proposed investments would be recovered through contemporaneous recovery mechanisms E = ESTIMATE Contemporaneous Recovery Mechanisms Traditional Recovery Mechanisms Energy Strong Filing (ES) Solar/Energy Efficiency Clauses FERC Formula Rates Distribution Base Rates 21% 10% 47% 22% $10.6 Billion 2013-2017E Capital Spending by Recovery Method |
 37 PSE&G’s existing major transmission investment program remains on schedule and on budget Major Transmission Projects Approved ROE Inclusion of CWIP in Rate Base 100% Recovery of Costs Due to Abandonment Total Estimated Project Costs Expected In-service Date Susquehanna-Roseland 12.93% $790 June 2014 / June 2015 Northeast Grid Reliability 11.93% $895 June 2015 North Central Reliability 11.68% $390 June 2014 Burlington – Camden 230kV 11.68% $399 June 2014 Mickleton – Gloucester-Camden 230kV 11.68% $435 June 2015 |
 38 Susquehanna-Roseland consists of constructing 150 miles of 500kV circuit (46 miles in NJ) with two new 500kV GIS switching stations at Roseland and Hopatcong Project Estimate Up To* Through Year-end 2012 2013-2015E Expected In-service Date $790M $324M $466M June 2014 / June 2015 • PJM RTEP project b0489 • ROE of 12.93% (including 1.25% incentive) • 100% CWIP in rate base during development • 100% recovery of prudently incurred costs due to abandonment Project Status: Major permitting & siting complete, outside and inside plant construction in progress *PROJECT IS SHARED WITH PPL. PROJECT ESTIMATE REPRESENTS PSE&G’S CONSTRUCTION RESPONSIBILITY FOR THE NJ PORTION. E = ESTIMATE |
 39 Northeast Grid Reliability consists of upgrading approximately 50 overhead circuit miles of 138kV transmission line to 230kV, constructing ~18 miles of new underground 230kV lines, and converting twelve existing stations to 230kV operation Project Estimate Up To Through Year- end 2012 2013-2015E Expected In-service Date $895M $88M $807M June 2015 • PJM RTEP project b1304 • ROE of 11.93% (including 0.25% incentive) • 100% CWIP in rate base during development • 100% recovery of prudently incurred costs due to abandonment Project Status: Engineering, licensing, and outside plant underground construction in progress E = ESTIMATE |
 40 North Central Reliability consists of upgrading 55 circuit miles of 138kV transmission line to 230kV, and converting six existing stations to 230kV operation Project Estimate Up To Through Year- end 2012 2013-2015E Expected In-service Date $390M $163M $227M June 2014 • PJM RTEP project b1154 • ROE of 11.68% • 100% CWIP in rate base during development • 100% recovery of prudently incurred costs due to abandonment Project Status: Major permitting & siting complete, outside and inside plant construction in progress E = ESTIMATE |
 41 Burlington-Camden 230kV consists of upgrading 37 circuit miles (30 miles of overhead and 7 miles of under- ground) of 138kV transmission line to 230kV, converting the existing stations to 230kV operation Project Estimate Up To Through Year-end 2012 2013- 2014E Expected In-service Date $399M $169M $230M June 2014 • PJM RTEP project b1156 • ROE of 11.68% • 100% CWIP in rate base during development • 100% recovery of prudently incurred costs due to abandonment E = ESTIMATE Project Status: Major permitting & siting complete, outside and inside plant construction in progress |
 42 Mickleton-Gloucester-Camden 230kV consists of upgrading 10 circuit miles of overhead transmission, installing ~16 circuit miles of new 230kV underground, 10 circuit miles of new 230kV overhead, and modifications/upgrades at five existing stations Project Estimate Up To Through Year- end 2012 2013-2015E Expected In-service Date $435M $24M $411M June 2015 • PJM RTEP project b1398 • ROE of 11.68% • 100% CWIP in rate base during development • 100% recovery of prudently incurred costs due to abandonment E = ESTIMATE Project Status: Major permitting & siting complete, outside and inside plant construction in progress |
 43 State policy imperatives have been redefined by SuperStorm Sandy |
 44 We have also responded with a plan focused on infrastructure hardening and resiliency |
 45 PSE&G is continuing to provide solutions to assist New Jersey in achieving its EMP goals *PENDING APPROVAL. |
 46 Lower commodity costs and expiration of certain transition charges are expected to fully offset the impact to customer bills *2018 BGS/BGSS RATES AS WELL AS SBC AND DISTRIBUTION RATES HELD CONSTANT AT CURRENT 2013 RATES. RATES RELATED TO ELECTRIC RESTRUCTURING: SECURITIZATION (STC), NON-UTILITY GENERATION CHARGE (NGC), & TRANSITIONAL ENERGY FACILITIES ASSESSMENT (TEFA), ARE REDUCED TO ZERO BY 2018. THE RGGI RECOVERY CHARGE (RRC), SOLAR PILOT RECOVERY CHARGE (SPRC), AND CAPITAL ECONOMIC STIMULUS INFRASTRUCTURE INVESTMENT PROGRAM EXTENSION (CIP II ) BILL IMPACTS ARE INCLUDED IN THEIR RESPECTIVE GAS AND ELECTRIC BARS AND FORECASTED IN 2018 BASED UPON LATEST ESTIMATE. THE 2018 BILL IMPACTS OF ES, EE4ALL, AND S4AEXT/SL3 IMPACTS ARE BASED UPON CURRENT ESTIMATES. |
 47 PSE&G’s 2013 operating earnings is benefiting from transmission growth and cost containment initiatives E= ESTIMATE *SEE SLIDE A FOR ITEMS EXCLUDED FROM INCOME FROM CONTINUING OPERATIONS TO RECONCILE TO OPERATING EARNINGS. |
 48 Long Island Power Authority |
 49 LIPA T&D management contract In December 2011, the Long Island Power Authority (LIPA) selected PSEG to manage its electric transmission and distribution system for 10 years starting in 2014 • Commitment to cost control and investment optimization • Corporate culture of transparency and data-driven decision making • Transition activities on-track – successfully achieving all milestones through February 2013 Successful management of the LIPA transmission and distribution system may lead to additional growth opportunities • Reasons for selecting PSEG included: • Proven technical capabilities and track record of top quartile customer service and reliability • Evaluating impact of SuperStorm Sandy and recent LIPA management changes on the overall schedule and transition |
 PSEG ENERGY holdings EXECUTIVE VICE PRESIDENT STRATEGY AND DEVELOPMENT PRESIDENT PSEG ENERGY HOLDINGS Randall Mehrberg |
 51 PSEG Energy Holdings strategy Holdings’ priorities are to manage lease risks, sell remaining non- core assets and grow the renewables portfolio |
 52 PSEG ENERGY HOLDINGS has monetized the majority of its legacy assets, eliminated all Holdings debt, and returned cash to PSEG NOTE: 2006 AND 2012 DATA REFLECT BOOK VALUES OF ASSETS, EXCLUDING DEFERRED TAXES. TRANSACTIONS REFLECT TRANSFER VALUE IN THE CASE OF TEXAS, MARKET VALUES FOR ASSET DISPOSITIONS OR, IN THE CASE OF DYNEGY, BOOK VALUE RESERVE TAKEN IN 2011.. Holdings Investment Portfolio |
     53 Reducing Risk and Monetizing Legacy Assets PSEG Energy Holdings Growth in unregulated renewables PSEG Solar Source Growth by leveraging knowledge PSEG Long Island Merchant Energy Leveraged Leases Regulated Energy Leveraged Leases Real Estate Leveraged and Operating Leases Legacy Generation Assets …MANAGING RISK FOR REMAINING LEGACY ASSETS AND INVESTING IN RENEWABLES |
 54 Queen Creek Arizona (25 MW) COD October 2012 Polycrystalline - single axis tracker Investment $75 million 20 year PPA with SRP PSEG Solar Source has completed 69 MW and has an additional 19 MW under construction JEA Florida (15 MW) Milford Delaware (15 MW) COD December 2012 Polycrystalline - fixed tilt Investment $47 million 20 year PPA with DEMEC Hackettstown (Mars) New Jersey (2 MW) COD September 2009 Thin film panels – fixed tilt Investment $13 million 15 year PPA with Mars, Inc. Wyandot Ohio (12 MW) COD May 2010 Thin film panels – fixed tilt Investment $45 million 20 year PPA with AEP … OPPORTUNITY FOR GROWTH IN UNREGULATED SOLAR Badger I Arizona (19 MW) Expected COD late 2013 Polycrystalline - single axis tracker Investment $51 million 30 year PPA with APS COD September 2010 Thin film panels – fixed tilt Investment $59 million 30 year PPA with JEA |
 55 PSEG Energy Holdings These projects will produce steady results for PSEG PSEG Solar Source EBITDA E = ESTIMATE.. … A STABLE, LOW-RISK PORTFOLIO |
 56 PSEG Energy Holdings Simplifying the business and creating growth opportunities in renewables Operational Excellence Financial Strength Disciplined Investment |
 PSEG POWER PRESIDENT & CHIEF OPERATING William Levis OFFICER, PSEG POWER |
 58 PSEG Power strategy Focused on safety performance, unit reliability, competitive cost structure with control of maintenance costs, achieving operational excellence, and supporting market rules to maintain a level playing field |
 59 PSEG Power creating value by responding to changing markets and regulations |
 60 PSEG Power delivered in 2012 Storm and weather challenges • SuperStorm Sandy impacted our generating sites • Warm winter put pressure on demand and pricing for both electricity and gas • Hot summer weather created challenging operating environment Market challenges • Unit outages and transmission outages resulted in pressure on basis • Lower gas cost impacted dark spread pressuring coal unit dispatch • Load impacted by weather and economy Value delivered • Cost control • Lower dispatch and fuel cost • Captured value through coal/gas switching, unit flexibility • Improved unit availability • Coal & oil sales optimized inventory • Expedited return from storm outages, restored margin opportunities • Optimized unit dispatch across fleet during storm recovery |
 61 PSEG Power has generating assets in three competitive markets • Low cost portfolio • Fuel flexibility • Assets near loads • Poised to benefit in real time markets • Fleet will maintain diversity and efficiency in 2016 after HEDD • Most sites suitable for expansion |
 62 PSEG Power Nuclear fleet is a critical element of success Hope Creek • Operated by PSEG Nuclear • PSEG Ownership: 100% • Technology: Boiling Water Reactor • Total Capacity: 1,174 MW • Owned Capacity: 1,174 MW • License Expiration: 2046 • Next Refueling • Fall 2013 Salem Units 1 and 2 • Operated by PSEG Nuclear • PSEG Ownership: 57%, Exelon – 43% • Technology: Pressurized Water Reactor • Total Capacity: 2,326 MW • Owned Capacity: 1,335 MW • License Expiration: 2036 and 2040 • Next Refueling • Unit 1 -- Spring 2013 • Unit 2 – Spring 2014 Peach Bottom Units 2 and 3 • Operated by Exelon • PSEG Ownership: 50% • Technology: Boiling Water Reactor • Total Capacity: 2,245 MW • Owned Capacity: 1,123 MW • License Expiration: 2033 and 2034 • Next Refueling • Unit 2 – Fall 2014 • Unit 3 – Fall 2013 |
 63 PSEG Power Nuclear is core to the fleet and has competitive advantages |
 64 PSEG Power’s Fossil Fleet availability has shown steady improvement |
 65 PSEG Power improvements achieved in combined cycle fleet efficiency Actions Taken to Create Value • Heat rate improvement program • Operational Excellence Model • Training programs • Unit testing initiative • Outage work to restore efficiency |
 66 SuperStorm Sandy affected the fleet; when the load returned, Power was ready |
 67 PSEG Power’s fleet is among the lowest emitting in the industry • Mercury reduced 80% across the timeframe above • Power is well positioned for HAPS |
 68 PSEG Power’s focus on costs has resulted in moderate increase in O&M for six years Cost control actions taken: • Coal assessment • CCGT material condition assessment • Contract renegotiation • Material management • Nuclear maintenance productivity study • Nuclear outage efficiency initiative 2008 to 2013 CAGR = 1.9% Power O&M Expense* * INCLUDES IMPACTS FROM STORM RECOVERY COSTS AND POTENTIAL RELATED INSURANCE PROCEEDS. E = ESTIMATE. |
 69 PSEG Power is well positioned for growth in the fleet when market conditions dictate Available locations Our sites possess infrastructure advantages • Bergen • Burlington • Essex • Edison • Kearny • Hudson • Linden • Sewaren • Bridgeport Harbor • Electric Interconnection • Gas Pipeline Access • Sites/Space • Emissions |
 70 PSEG Power will maintain diversity and efficiency after a realignment of the fleet in 2016 E=ESTIMATE |
 71 PSEG Power is an established leader within the industry |
 72 PSEG Power has added value with focus on operational excellence * EXCLUDES SANDY IMPACT. |
 Shahid Malik PRESIDENT ENERGY RESOURCES AND TRADE PSEG POWER ER&T |
 74 PSEG Power ER&T strategy Focused on optimizing the value of its asset portfolio and providing outstanding service to our customers, while prudently managing risk |
 75 Agenda Diversified Assets & Flexible Dispatch Managing Risks & Creating Value Regulatory Advocacy |
 76 PSEG wholesale market strategy built on a strong asset portfolio Diversified Assets & Flexible Dispatch Regulatory Advocacy Managing Risks & Creating Value Managing Risks & Creating Value Consistent hedging strategy • Full load requirements • Capacity sales •Monetize optionality Diversified Assets & Flexible Dispatch Strong operational performance Fuel switching Ancillary services Regulatory Advocacy Supports competitive markets Seeks a level playing field Provides insight Creates opportunity MARKET EXPECTATIONS |
 77 Diversified assets and flexible dispatch |
 78 Fleet capacity has been advanced by: |
 79 Spark spread replaces dark spread as major value driver Actual Monthly On Peak Spreads PS Zone vs M3/CAPP PSEG Power Natural Gas Use for Electric Generation Spark spread has risen above dark spread in PJM markets Power’s gas units operating at record throughput Gas operation provides much more operational flexibility Enhances the ability of trading organization to capture volatility 79 |
 80 Agenda Diversified Assets & Flexible Dispatch Managing Risks & Creating Value Regulatory Advocacy |
 81 2013 BGS Auction Results for PSE&G Zone Capacity Load shape Transmission Congestion Ancillary services Risk premium Green BGS sales account for about a third of our forward portfolio of hedges 3 Year Average Round the Clock PJM West Forward Energy Price 2009 2010 2011 2012 2013 $103.72 ~ $47 $95.77 $94.30 ~ $47 ~ $48 ~ $46 $83.88 ~ $53 $92.18 $48 - $50 $45 - $47 $37 - $38 $56 - $58 $39 - $40 BGS PRICES REFLECT PSE&G ZONE; RESULTS FOR 2011-2013 WILL BE THE NEW BLENDED PRICES BEGINNING JUNE 1, 2013. |
 82 • 3 Year forward BGS sales comprise smaller percentage of Power’s hedges • Other full requirement load deals help capture additional locational and load shape premium NOTE: PERCENTAGES REPRESENT HEDGED VOLUMES IN PLACE AFTER BGS AUCTION. Our hedging mix has changed with the market but still captures the fleet’s locational advantage |
 83 Hedging strategy designed to protect gross margin and leverage the portfolio Dynamic Hedging on Intermediate Coal, Combined Cycle and Peaking: 2013 2014 2015 Baseload (Nuclear and Baseload Coal) Volume TWh 35 35 35 % Hedged 100% 80-85% 40-45% Price $/MWh $50 $49 $51 Intermediate Coal, Combined Cycle, Peaking Volume TWh 20 19 18 % Hedged 30-35% 0% 0% Price $/MWh $50 $49 $51 TOTAL Volume TWh 53-55 53-55 52-54 % Hedged 75-80% 50-60% 25-30% Price $/MWh $50 $49 $51 Ratable Hedging on Baseload: * HEDGE PERCENTAGES AND PRICES AS OF FEBRUARY 11, 2013. 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. • Position fleet to take advantage of market volatility • Gas and load-following fleet left open until prompt year to capture volatility • Use all trading products to capture option value of assets and benefit from market dislocations • 3 year ratable hedge tactics • 3 year PJM hedge of capacity (not included in table) • Load following sales (such as BGS) have strong correlation to our units for hedging basis and load shaping premium |
 84 • Basis (PS Zone to PJM West) will continue to trend downward for forward sales • Volatility will remain significant in the prompt periods (especially summer/winter) • Power maintains sufficient length to participate in upside volatility as well as a valuable 250MW transmission position into NYC • Basis will continue to have a positive impact on PSEG Power profitability *AS OF FEBRUARY 14, 2013. |
      85 • Lower cost supplies of shale gas have been beneficial to both PSE&G customers and PSEG Power • Over 50% of our available pipeline capacity can access market area supplies of shale gas • Power’s generating units sit in close proximity to the Marcellus fairway • Power buys approximately 350BCF/year of gas • We have been able to arbitrage gas values from South to North and East to West using our storage and pipeline capacity Gulf Coast Supply 0.7 BCF/D Shale Supply 0.6 BCF/D Storage 0.9 BCF/D Albany PSEG’s locational advantage and gas basis New York |
 86 PJM’s capacity market continues to recognize locational value of our fleet 2016/2017 RPM Auction Influenced By: • Updated Demand Curve • Updated Transfer Capabilities • Environmental Retirements • New Build/Cost of New Entry • Minimum Offer Price Rule • Demand Response |
 87 Reserve margins in PJM declining with retirements Generation Deactivation Notifications Source: PJM TEAC, 1/10/2013 • PJM Pending Deactivation Requests of 12,634 MW as of January 22, 2013 • Approximately 4,000 MW of additional owner announced retirements in PJM through next auction • PJM forecasts a declining Reserve Margin through 2017 |
 88 Agenda Diversified Assets & Flexible Dispatch Managing Risks & Creating Value Regulatory Advocacy |
 89 Regulatory Advocacy Current Issues • PJM RPM rules for Capacity Markets • PJM Energy/Ancillary Services Market • New England Capacity Markets • New York Energy Markets • Trade Associations and ISO/RTO activities ISSUE /POLICY HOW ADDRESSED? PJM MOPR Sufficiency/Exceptions before FERC and courts DEMAND RESPONSE RULES Performance/eligibility/compensation issues before courts, FERC, and PJM stakeholder process ANCILLARY/ENERGY Regulation/Black-start modifications under consideration in PJM stakeholder process before FERC NYISO CAPACITY Jurisdictional dispute at FERC over retirement decisions; Impact of PSC approved Reliability Must Run arrangement on markets NEPOOL FCM Market design issues pending at Court of Appeals, FERC and ISO-NE stakeholder process FEDERAL Gas/Electric Coordination Participation in ISO/FERC/Industry forums Recent Rulings • FERC approval of Cost of New Entry (CONE) • PJM Area Regulation rules • EPA RICE/NESHAPS rules • FERC ruling imposing DR must offer requirement in ISO-NE |
 90 Diversified Assets & Flexible Dispatch Regulatory Advocacy Managing Risks & Creating Value Managing Risks & Creating Value Consistent hedging strategy • Full load requirements • Capacity sales •Monetize optionality Diversified Assets & Flexible Dispatch Strong operational performance Fuel switching Ancillary services Regulatory Advocacy Supports competitive markets Seeks a level playing field Provides insight Creates opportunity MARKET EXPECTATIONS PSEG wholesale market strategy built on a strong asset portfolio |
 PSEG FINANCIAL REVIEW & OUTLOOK EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER Caroline Dorsa |
 92 Strong financial position to support our business initiatives Financial Position Achieved Earnings Guidance Stable Dividend and Opportunity for Growth Strong Balance Sheet Regulated Growth Opportunity without Equity Issuance Solid Credit Ratings O&M Controlled Well Funded Pension |
 93 2013 guidance in same range as 2012 PSEG Operating Earnings $ Millions (except EPS) 2013E PSEG Power $535 - $600 PSE&G $580 - $635 PSEG Energy Holdings/Parent $25 - $35 Operating Earnings* $1,140 - $1,270 2013 Earnings Guidance $2.25 - $2.50 E = ESTIMATE *SEE SLIDE A FOR ITEMS EXCLUDED FROM INCOME FROM CONTINUING OPERATIONS TO RECONCILE TO OPERATING EARNINGS. |
 94 PSE&G is expected to represent 50% of 2013 operating earnings Business Mix of Operating Earnings PSE&G Power & Other ~50% ~50% E = ESTIMATE SEE SLIDE A FOR ITEMS EXCLUDED FROM INCOME FROM CONTINUING OPERATIONS TO RECONCILE TO OPERATING EARNINGS. |
 95 In 2012, PSE&G executed its capital program, Power generated significant free cash flow and PSEG increased its shareholder dividend Power Cash from Ops PSE&G Cash from Ops (1) PSE&G Capital Investment Power Capital Investment Cash Other Net Cash Flow Shareholder Dividend Net Debt Issuances 2012 Sources and Uses (1) PSE&G CASH FROM OPERATIONS ADJUSTS FOR SECURITIZATION PRINCIPAL REPAYMENTS OF ~$216 MILLION. |
 96 Our capital investment options can result in as much as $5.6B of utility growth investment through 2015 PSE&G Growth ~$4B PSE&G Maintenance Power & Other Potential Opportunities Approved Programs 2013 – 2015E Capital Investment ~$6B ~$6.4B ~$6.6B ~$7.6B EMP ~$0.4B New Transmission ~$0.2B New Distribution ~$1B PSE&G Growth $5.6B EMP: ENERGY MASTER PLAN E = ESTIMATE |
 97 All scenarios can be financed without new equity 2013 – 2015E Power Cash from Ops PSE&G Cash from Ops (1) PSE&G Capital Investment Power Capital Investment Shareholder Dividend Net Debt Issuances Other Net Cash Flow 2013 – 2015E Power Cash from Ops PSE&G Cash from Ops (1) PSE&G Capital Investment Power Capital Investment Shareholder Dividend Net Debt Issuances Other Net Cash Flow Approved Programs plus EMP, New Transmission and New Distribution Approved Programs (1) PSE&G CASH FROM OPERATIONS ADJUSTS FOR SECURITIZATION PRINCIPAL REPAYMENTS OF ~$725M FROM 2013-2015 E = ESTIMATE |
 98 PSE&G’s capital spending drives regulated earnings growth with a potential future rate base of up to ~$12.6B ~$9B ~$2.2B ~$11.2B 2012 Rate Base Potential New Opportunities 2013 – 2015E Rate Base Growth Approved Programs 2015E Rate Base 3-yr CAGR: ~7.8% 2015E Rate Base 3-yr CAGR: ~12% EMP ~$0.2B New Distribution ~$1B New Transmission ~$0.2B ~$11.4B ~$11.6B ~$12.6B EMP: ENERGY MASTER PLAN E = ESTIMATE |
 99 Power’s credit metrics are expected to remain strong Power FFO/Debt 2013 – 2015E Average E = ESTIMATE 0% 10% 20% 30% 40% 50% 60% 70% 80% 2010 2011 2012 Approved Approved plus EMP, New Transmission and New Distribution |
 100 Using PSEG’s balance sheet strength to finance growth in the regulated enterprise without equity issuance PSEG Total Capitalization 2012 2015E* * E = ESTIMATE; INCLUDES THE FOLLOWING PROPOSED FILINGS: EE4A, SL3, S4AE, ENERGY STRONG (ES) AND TRANSMISSION HARDENING. |
 101 Our investment programs are affordable, helped by the expiration of known charges by 2017, which lower the average residential customer bill by ~ 8.7% based on today’s current bill PSE&G Securitization & NUG Impacts ($Millions) PSE&G Securitization Impacts 2013 2014 2015 2016 2017 Revenues 439 445 386 0 0 Interest Expense (46) (30) (11) 0 0 Amortization (253) (273) (233) 0 0 Deferred Tax & Other (140) (142) (142) 0 0 P&L Impact (GAAP view) 0 0 0 0 0 PSE&G Non–Utility Generation 2013 2014 2015 2016 2017 Revenues* 157 167 141 49 0 Expenses (157) (167) (141) (49) 0 P&L Impact (GAAP view) 0 0 0 0 0 *NUG revenues reflect Feb 1, 2013 rates Typical Current Average Residential Customer Bill Impact Securitization ~6.6% Non-Utility Generation ~2.1% |
 102 Modest O&M growth with Power increases from CCGT maintenance cycles, due to high utilization rates (1) POWER EXCLUDES IMPACTS FROM STORM RECOVERY COSTS AND POTENTIAL RELATED INSURANCE PROCEEDS NM = NOT MATERIAL. E = ESTIMATE. PSEG O&M Expense (1) 2013-2015E CAGR: ~2.2% CAGR Transmission ~0.4% Distribution ~1.3% Power ~2.9% Holdings & Other: N.M. |
 103 Pension contributions expected to decline with well funded plan Pension Plan Contributions 2010 2011 2012 2013E 2014E 2015E Funded Ratio 82% 84% 83% >85% >90% >90% Amended Benefit Plans E = ESTIMATE |
 104 PSEG’s long-term outlook is influenced by Power’s hedge position and increased investment at PSE&G 2014E 2015E Segment EPS Drivers E = ESTIMATE Each $1/mcf Change in Natural Gas Each $2/MWh Change in Spark Spread Each $2/MWh Change in Dark Spread Each 1% Change in Nuclear Capacity Factor Each $100 Million of Incremental Investment Each 1% Change in Sales: Electric Gas Each 1% Change in O&M Each 10 bp Change in ROE $0.01 $0.01 $0.01 $0.01 $0.01 $0.10 - $0.13 $0.04 $0.01 $0.01 $0.03 - $0.06 $0.04 $0.01 $0.01 $0.01 $0.01 $0.01 $0.01 $0.01 |
 105 Opportunity for modest and sustainable dividend increases consistent with stable regulated growth and cash generation outlook at PSEG Power PSE&G EPS $1.25 $1.14 $1.42 Annual Dividend Per Share E = ESTIMATE |
 106 Summary • Operating Earnings Guidance for 2013 of $2.25 - $2.50 per share with earnings mix shifting to 50% regulated • Double digit operating earnings growth at PSE&G starting in 2013, and continuing through 2015 driven by transmission investments and approved programs • Power’s continued focus on operational excellence, market expertise and financial strength reduces risk in low price environment • Strong Balance Sheet and Cash Flow support full capital program without the need for equity • Long history of returning cash to the shareholder through the common dividend, with opportunity for further growth |
 PSEG Executive Profiles |
 108 CHAIRMAN, PRESIDENT AND CHIEF EXECUTIVE OFFICER PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED Ralph Izzo |
 109 EXECUTIVE VICE PRESIDENT AND GENERAL COUNSEL, PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED, PUBLIC SERVICE ELECTRIC AND GAS COMPANY, PSEG SERVICES CORPORATION, EXECUTIVE VICE PRESIDENT AND PSEG POWER J. A. Bouknight, Jr. (Lon) |
 110 EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER, EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER, PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED, PUBLIC SERVICE ELECTRIC AND GAS COMPANY, PSEG POWER LLC AND PSEG SERVICES CORPORATION Caroline Dorsa |
 111 SENIOR VICE PRESIDENT – PUBLIC AFFAIRS & SUSTAINABILITY PSEG SERVICES CORPORATION Anne E. Hoskins |
 112 PRESIDENT AND CHIEF NUCLEAR OFFICER PSEG NUCLEAR Thomas P. Joyce |
 113 PRESIDENT AND CHIEF EXECUTIVE OFFICER PUBLIC SERVICE ELECTRIC AND GAS COMPANY Ralph LaRossa |
 114 PRESIDENT & CHIEF OPERATING OFFICER PSEG POWER William Levis |
 115 PRESIDENT PSEG FOSSIL Richard P. Lopriore |
 116 PRESIDENT PSEG ENERGY RESOURCES & TRADE Shahid Malik |
 117 EXECUTIVE VICE PRESIDENT STRATEGY AND DEVELOPMENT PRESIDENT PSEG ENERGY HOLDINGS Randall Mehrberg |
 118 SENIOR VICE PRESIDENT – HUMAN RESOURCES AND CHIEF HUMAN RESOURCES OFFICER PSEG SERVICES CORPORATION Margaret M. Pego, SPHR |
 119 PSE&G Appendix |
 120 PSE&G provides high reliability at below average cost which creates superior value to customers SAIDI = SYSTEM AVERAGE INTERRUPTION DURATION INDEX, A MEASURE OF AVERAGE OUTAGE DURATION FOR ALL CUSTOMERS SERVED. |
 121 PSE&G prioritizes public safety while maintaining value to customers LEAK RESPONSE RATE = PERCENTAGE OF UTILITY RESPONSES TO REPORTED LEAKS WITHIN ONE HOUR. |
 122 Formula rates for transmission make the process more predictable with contemporaneous returns Transmission (Federal) Distribution Base Rate Case (State) Current ROE • 11.68% base • 12.93% with incentives on Susquehanna-Roseland • 11.93% with incentives on Northeast Grid • 10.3% Volatility of Returns • Low – prospective recovery with annual true-ups for over/under recovery • Higher – performance impacted positively/negatively by cost management, weather, customer demands, etc. Process • Formula – The rate template and specific elements like ROE are predetermined with annual updates and true ups • Litigated case with each element (depreciation, ROE, O&M levels, Rate Base) scrutinized and settled Intervenors • State consumer advocates usually participate • State consumer advocates • Large customers • Other parties affected by the case, e.g. Solar Developers Test Year • PSE&G has fully forecasted test year for both Capital and O&M • Historical test year with pro-forma adjustments for known and measurable items, e.g. wage escalation Time to resolve • Annual Formula updates are filed in October with January 1 effective date • Typically settled within 12-15 months |
 123 New Jersey Board of Public Utilities (BPU) • The Board of Public Utilities consists of five commissioners appointed by the Governor. These appointees are confirmed by the NJ Senate for six-year, staggered terms. The Governor appoints one of the five to serve as Commission President. Currently, the commissioners are: • Robert M. Hanna, Commission President • Jeanne M. Fox • Joseph L. Fiordaliso • Mary-Anna Holden • Stefanie Brand, Director of the Division of Rate Counsel |
 124 Slow economic recovery in NJ is constraining growth in all market sectors Modest residential growth limited by housing market inactivity and the slow economic recovery Consumer spending is trending with the slow economic recovery and impacting growth in the commercial sector Industrial sales growth continues to be constrained by slow economic recovery 0.3% 0.4% 0.0% 0.5% 0.9% 0.7% 0.3% 0.7% 2013 - 2015 Projected Sales Growth – Gas* 2013 - 2015 Projected Sales Growth – Electric* Residential Commercial Industrial Total Residential Commercial Industrial Total * WEATHER NORMALIZED ESTIMATED ANNUAL GROWTH PER YEAR OVER FORECAST PERIOD |
 125 Key economic indicators forecast renewed growth over the 2012 to 2015 timeframe The New Jersey economy increased by 0.3% annually from 2010 to 2012 and is anticipated to grow 2.3% per year from 2012 to 2015 New Jersey total non-farm employment increased by 0.6% annually from 2010 to 2012 and is expected to grow 1.4% per year from 2012 to 2015 Real personal income in New Jersey increased by 1.4% annually from 2010 to 2012 and is expected to increase 2.5% per year from 2012 to 2015 Single family housing starts declined by 2.6% annually from 2010 to 2012 and are expected to increase ~24% per year from 2012 to 2015 SOURCE: HIS GLOBAL INSIGHT FEBRUARY 2013 FORECAST. |
 126 PSEG Power Appendix |
 127 Nuclear fuel needs have been hedged through 2015 Hedged |
 128 Power’s coal hedging reflects 2013 supply matched with 2013 sales… Station Coal Type Pricing ($/MWh) * Comments Bridgeport Harbor Adaro Mid $50’s Higher price, lower BTU, enviro coal Hudson CAPP High $40’s Flexibility after BET in 2010 Mercer Metallurgica l CAPP/NAPP Mid $40’s More limited segment of coal market Keystone NAPP Mid $20’s Prices steady Conemaugh NAAP Mid $20’s Prices steady *COMMODITY PLUS TRANSPORTATION |
 129 The full requirements BGS rate recognizes the forward PJM capacity market price 2013-2014 250 $ 195 $ 2014-2015 170 $ 108 $ 2015-2016 166 $ 365 $ 108 8,760 ~37% 350,000 22 $ MW per Tranch (varies by EDC) Load Factor (varies by EDC) Capacity Price per BGS Tranche Capacity Price per RPM Auction for PSEG Zone Three Year Average ($/MW-day) $ 195 Capacity Cost per Tranche $ 7,712,637 MWh per Tranche Capacity Cost per MWh Three Year Average ($/MW-day) Days per Year Energy MW per Tranche (Varies by EDC) Hours per Year MWh per Tranche, approx. |
 130 PSEG Energy Holdings Appendix |
 131 PSEG Energy Holdings Investment Portfolio Equipment Investment Balance * at 12/31/12 ($millions) Solar Source Five Operating Solar Facilities : NJ, DE, OH, FL, AZ – 69 MW $159 Merchant Energy Leases GenOn (REMA) Keystone, Conemaugh & Shawville (PA) 3 coal-fired plants (1,162 equity MW) $341 Edison Mission Energy (EME)** Powerton & Joliet Generating Stations (IL) 2 coal-fired generating facilities (1,640 equity MW) $218 Regulated Energy Leases Merrill Creek Reservoir in NJ (PECO, MetEd, Delmarva Power & Light) $202 Grand Gulf Nuclear station in Mississippi (175 equity MW) Real Estate Leveraged Leases GM Renaissance Center; Wal-Marts; E-D (shopping) Center $ 80 Real Estate Operating Leases Office Towers, Shopping Centers - 29 properties $100 Generation Legacy Assets Kalaeloa (HI) 209 MW CC Oil, GWF (in wind down stage) $ 96 Aircraft Leases and Other Delta Airlines aircraft; Land & Receivables $ 24 Total Holdings Investments $1,220 * BOOK BALANCE EXCLUDING DEFERRED TAX ACCOUNTS **EME AND ITS SUBSIDIARIES FILED CHAPTER 11 BANKRUPTCY ON 12/17/2012. LEASE REJECTION OR ACCEPTANCE DECISION IS PENDING. |
 132 PSEG Financial Appendix |
 133 Delivered on 2012 earnings guidance PSEG Operating Earnings $ Millions (except EPS) 2012 PSEG Power $644 PSE&G $528 PSEG Energy Holdings/Parent $64 Operating Earnings* $1,236 Earnings per Share $2.44 2012 Earnings Guidance $2.25 - $2.50 *SEE SLIDE A FOR ITEMS EXCLUDED FROM INCOME FROM CONTINUING OPERATIONS TO RECONCILE TO OPERATING EARNINGS. |
 134 PSEG 2013 Operating Earnings Guidance - By Subsidiary $ millions (except EPS) 2013E 2012A PSE&G $580 – $635 $528 PSEG Power $535 – $600 $644 PSEG Energy Holdings/Enterprise $25 – $35 $64 Operating Earnings* $1,140 – $1,270 $ 1,236 Earnings per Share $ 2.25 – $ 2.50 $2.44 * SEE SLIDE A FOR ITEMS EXCLUDED FROM INCOME FROM CONTINUING OPERATIONS TO RECONCILE TO OPERATING EARNINGS. E = ESTIMATE |
 135 Strong Balance Sheet supports our full capital program without the need for equity $Billions Capitalization Subsidiary Debt (1) 2010 2011 2012 PSE&G 4.28 4.27 5.06 PSEG Power 3.45 2.75 2.34 Parent & Other 0.08 0.04 0.04 Total PSEG Debt 7.81 7.06 7.44 Subsidiary Equity PSE&G 4.42 4.65 5.17 PSEG Power 5.03 5.44 5.44 Parent & Other 0.18 0.18 0.17 Total PSEG Equity 9.63 10.27 10.78 PSE&G Debt to Cap 49% 48% 49% Power Debt to Cap 41% 34% 30% PSEG Debt to Cap 45% 41% 41% DEBT INCLUDES SHORT TERM DEBT (INCLUDING COMMERCIAL PAPER) AND EXCLUDES NON-RECOURSE AND SECURITIZATION DEBT |
 136 PSEG Liquidity as of December 31, 2012 Company Facility Date Facility Usage Liquidity ($Millions) PSE&G 5-year Credit Facility Apr-16 $600 $276 $324 5-Year Credit Facility (Power) Mar-17 1,600 65 1,535 5-Year Credit Facility (Power) Apr-16 1,000 0 1,000 5-Year Bilateral (Power) Sep-15 100 100 0 5-year Credit Facility (PSEG) Mar-17 500 4 496 5-year Credit Facility (PSEG) Apr-16 500 0 500 Total $4,300 $445 $3,855 $222 PSE&G ST Investment $65 Total Liquidity Available $4,142 Total Parent / Power Liquidity $3,753 PSEG / Power PSEG Money Pool ST Investment |
 Items Excluded from Income from Continuing Operations to Reconcile to Operating Earnings 2012 2011 2010 2009 2008 Earnings Impact ($ Millions) Gain (Loss) on Nuclear Decommissioning Trust (NDT) Fund Related Activity (PSEG Power) 52 $ 50 $ 46 $ 9 $ (71) $ Gain (Loss) on Mark-to-Market (MTM) (PSEG Power) (10) 107 (1) (11) 14 Lease Transaction Activity (Energy Holdings) 36 (173) - 29 (490) Storm O&M (PSEG Power) (39) - - - - Market Transition Charge Refund (PSE&G) - - (72) - - Gain (Loss) on Asset Sales and Impairments (Energy Holdings) - 34 - - (13) For the Year Ended December 31, Reconciling Items Excluded from Continuing Operations to Compute Operating Earnings (Unaudited) Pro-forma Adjustments, net of tax Total Pro-forma adjustments 39 $ 18 $ (27) $ 27 $ (560) $ Fully Diluted Average Shares Outstanding (in Millions) 507 507 507 507 508 Per Share Impact (Diluted) Gain (Loss) on NDT Fund Related Activity (PSEG Power) 0.10 $ 0.10 $ 0.09 $ 0.02 $ (0.14) $ Gain (Loss) on MTM (PSEG Power) (0.02) 0.21 - (0.02) 0.03 Lease TransactionActivity (Energy Holdings) 0.07 (0.34) - 0.05 (0.96) Storm O&M (PSEG Power) (0.08) - - - - Market Transition Charge Refund (PSE&G) - - (0.14) - - Gain (Loss) on Asset Sales and Impairments (Energy Holdings) - 0.06 - - (0.03) Total Pro-forma adjustments 0.07 $ 0.03 $ (0.05) $ 0.05 $ (1.10) $ 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. A |