- ------------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 11-K
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 (FEE REQUIRED)
For the fiscal year ended December 31, 1994 Commission File Number 1-973
A. Full title of the plan and the address of the plan, if
different from that of the issuer named below:
PUBLIC SERVICE ELECTRIC AND GAS COMPANY EMPLOYEE SAVINGS PLAN
80 PARK PLAZA
NEWARK, NEW JERSEY 07101
MAILING ADDRESS: P.O. Box 570
NEWARK, NEW JERSEY 07101-0570
B. Name of issuer of the securities held pursuant to the plan and
the address of its principal executive office:
See page 2.
- ------------------------------------------------------------------------
- -----------------------------------------------------------------------
Equities Growth Fund A
TWENTIETH CENTURY INVESTORS, INC. PROVIDENT NATIONAL ASSURANCE
4500 MAIN STREET COMPANY
P.O.BOX 419200 FOUNTAIN SQUARE
KANSAS CITY, MISSOURI 64141-6200 CHATTANOOGA, TENNESSEE 37402
NEW YORK LIFE INSURANCE COMPANY
Balanced Fund B 501 MADISON AVENUE
PHOENIX SERIES FUND NEW YORK, NEW YORK 10010
101 MUNSON STREET
GREENFIELD, MASSACHUSETTS 01301
Fixed Income Fund C: Enterprise Common Stock Fund D
THE PRUDENTIAL LIFE INSURANCE COMPANY and ESOP Fund
OF AMERICA PUBLIC SERVICE ENTERPRISE GROUP
PRUDENTIAL PLAZA INCORPORATED
NEWARK, NEW JERSEY 07101 80 PARK PLAZA
NEWARK, NEW JERSEY 07101-1171
METROPOLITAN LIFE INSURANCE COMPANY
ONE MADISON AVENUE Stock Index Equities Fund E
NEW YORK, NEW YORK 10010-3690 BANKERS TRUST COMPANY
280 PARK AVENUE
NEW YORK, NEW YORK 10017
PRINCIPAL MUTUAL LIFE INSURANCE COMPANY
THE PRINCIPAL FINANCIAL GROUP Utilities Equities Fund F
DES MOINES, IOWA 50392-0001 FIDELITY PORTFOLIOS
82 DEVONSHIRE STREET
BOSTON, MASSACHUSETTS 02109
JOHN HANCOCK MUTUAL LIFE COMPANY
JOHN HANCOCK PLACE Government Securities Fund G
P.O.BOX 111 WEISS, PECK AND GREER
BOSTON, MASSACHUSETTS 02117 ONE NEW YORK PLAZA
NEW YORK, NEW YORK 10004
ALLSTATE LIFE INSURANCE COMPANY
ALLSTATE PLAZA WEST International Stock Fund H
3100 SANDERS ROAD T. ROWE PRICE INC.
NORTHBROOK, ILLINOIS 60062 100 EAST PRATT STREET
BALTIMORE, MARYLAND 21202
- ------------------------------------------------------------------------
PUBLIC SERVICE ELECTRIC AND GAS COMPANY
EMPLOYEE SAVINGS PLAN
INDEX
PAGE
------
INDEPENDENT AUDITORS' REPORT..................................... 4
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS
AS OF DECEMBER 31, 1994 AND 1993............................... 5-9
STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
FOR THE YEARS ENDED DECEMBER 31, 1994 and 1993................. 10-14
NOTES TO FINANCIAL STATEMENTS.................................... 15-25
SCHEDULE OF ASSETS HELD FOR INVESTMENT - Item 27a................ 26
SCHEDULES OF REPORTABLE TRANSACTIONS - Item 27d.................. 27
SIGNATURES....................................................... 28
EXHIBIT INDEX.................................................... 29
INDEPENDENT AUDITORS' REPORT
Employee Benefits Committee of
Public Service Electric and Gas Company:
We have audited the accompanying statements of net assets available for
benefits of the Public Service Electric and Gas Company Employee Savings
Plan (the "Plan") as of December 31, 1994 and 1993, and the related
statements of changes in net assets available for benefits for the years
then ended. These financial statements are the responsibility of the
Plan's management. Our responsibility is to express an opinion on these
financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free
of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used
and significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audits
provide a reasonable basis for our opinion.
In our opinion, such financial statements present fairly, in all material
respects, the net assets available for benefits of the Plan at December
31, 1994 and 1993, and the changes in net assets available for benefits for
each of the years then ended in conformity with generally accepted
accounting principles.
Our audits were conducted for the purpose of forming an opinion on the
basic financial statements taken as a whole. The supplemental information
by fund is presented for the purpose of additional analysis of the basic
financial statements rather than to present information regarding the net
assets available for benefits and changes in net assets available for
benefits of the individual funds, and is not a required part of the basic
financial statements. The supplemental schedules of (1) assets held for
investment as of December 31, 1994 and (2) transactions in excess of five
percent of the current value of plan assets for the year ended December 31,
1994 are presented for the purpose of additional analysis and are not a
required part of the basic financial statements, but are supplementary
information required by the Department of Labor's Rules and Regulations for
Reporting and Disclosure under the Employee Retirement Income Security Act
of 1974, as amended. The supplemental information and the supplemental
schedules are the responsibility of the Plan's management. Such
supplemental information and schedules have been subjected to the auditing
procedures applied in our audit of the basic 1994 financial statements and,
in our opinion, are fairly stated in all material respects when considered
in relation to the basic financial statements taken as a whole.
DELOITTE & TOUCHE LLP
Parsippany, New Jersey
June 23, 1995
PAGE 1 OF 3
PUBLIC SERVICE ELECTRIC AND GAS COMPANY
EMPLOYEE SAVINGS PLAN
Statement of Net Assets Available for Benefits
December 31, 1994
Supplemental Information by Fund
------------------------------------------------------
Equities Fixed Enterprise
Growth Balanced Income Common Stock
Total Fund A Fund B Fund C Fund D
ASSETS ------------ ------------ ------------ ------------ ------------
- ------
Investments
Enterprise Common Stock............... $ 33,382,156 $ -- $ -- $ -- $ 23,462,252
Equities Growth Fund.................. 4,761,117 4,761,117 -- -- --
Balanced Fund......................... 2,180,156 -- 2,180,156 -- --
Insurance Annuity Contracts (GICs).... 74,101,089 -- -- 74,101,089 --
Stock Index Equities Fund............. 11,470,242 -- -- -- --
Utilities Equities Fund............... 2,745,366 -- -- -- --
Government Securities Fund............ 1,278,313 -- -- -- --
International Stock Fund.............. 3,180,664 -- -- -- --
------------ ------------ ------------ ------------ ------------
Total Investments................ 133,099,103 4,761,117 2,180,156 74,101,089 23,462,252
Participant Loans Receivable.......... 6,526,460 -- -- -- --
Receivables-Interest and Dividends.... 2,313,879 697,189 24,474 450,127 529,914
Cash and Temporary Cash Investments... 1,068,434 -- -- 535,627 510,068
------------ ------------ ------------ ------------ ------------
Total Assets..................... $143,007,876 $ 5,458,306 $ 2,204,630 $ 75,086,843 $ 24,502,234
------------ ------------ ------------ ------------ ------------
LIABILITIES
- -----------
Due to Active Participants............ $ 1,205,928 $ 29,571 $ (6,005) $ 625,669 $ 248,234
Purchases of Securities............... 469,630 -- -- -- 469,630
Accounts Payable...................... 220,990 666,621 29,478 (569,369) (196,367)
------------ ------------ ------------ ------------ ------------
Total Liabilities................ 1,896,548 696,192 23,473 56,300 521,497
NET ASSETS AVAILABLE FOR BENEFITS..... 141,111,328 4,762,114 2,181,157 75,030,543 23,980,737
------------ ------------ ------------ ------------ ------------
Total Liabilities and Net Assets
Available for Benefits......... $143,007,876 $ 5,458,306 $ 2,204,630 $ 75,086,843 $ 24,502,234
============ ============ ============ ============ ============
<FN>
SEE NOTES TO FINANCIAL STATEMENTS.
PAGE 2 OF 3
PUBLIC SERVICE ELECTRIC AND GAS COMPANY
EMPLOYEE SAVINGS PLAN
Statement of Net Assets Available for Benefits (Continued)
December 31, 1994
Supplemental Information by Fund (Continued)
-------------------------------------------------------------------
Stock Index Utilities Government
Equities Equities Securities International
Stock
Fund E Fund F Fund G Fund H ESOP Fund
----------- ----------- ----------- ----------- -----------
ASSETS
- ------
Investments
Enterprise Common Stock.............. $ -- $ -- $ -- $ -- $ 9,919,904
Equities Growth Fund................. -- -- -- -- --
Balanced Fund........................ -- -- -- -- --
Insurance Annuity Contracts (GICs)... -- -- -- -- --
Stock Index Equities Fund............ 11,470,242 -- -- -- --
Utilities Equities Fund.............. -- 2,745,366 -- -- --
Government Securities Fund........... -- -- 1,278,313 -- --
International Stock Fund............. -- -- -- 3,180,664 --
----------- ----------- ----------- ----------- -----------
Total Investments............... 11,470,242 2,745,366 1,278,313 3,180,664 9,919,914
Participant Loans Receivable......... -- -- -- -- --
Receivables-Interest and Dividends... 139,161 137,994 8,852 194,269 131,404
Cash and Temporary Cash Investments.. -- -- -- -- 10,785
----------- ----------- ----------- ----------- -----------
Total Assets....................$ 11,609,403 $ 2,883,360 $ 1,287,165 $ 3,374,933 $10,062,093
----------- ----------- ----------- ----------- -----------
LIABILITIES
- -----------
Due to Active Participants........... $ 48,026 $ (6,935) $ (9,061) $ -- $ 276,429
Purchases of Securities.............. -- -- -- -- --
Accounts Payable..................... 84,615 139,858 16,182 194,272 (145,201)
----------- ----------- ----------- ----------- -----------
Total Liabilities............... 132,641 132,923 7,121 194,272 131,228
NET ASSETS AVAILABLE FOR BENEFITS.... 11,476,762 2,750,437 1,280,044 3,180,661 9,930,865
----------- ----------- ----------- ----------- -----------
Total Liabilities and Net Assets
Available for Benefits........ $11,609,403 $ 2,883,360 $ 1,287,165 $3,374,933 $10,062,093
=========== =========== =========== =========== ==========-
<FN>
SEE NOTES TO FINANCIAL STATEMENTS.
PAGE 3 OF 3
PUBLIC SERVICE ELECTRIC AND GAS COMPANY
EMPLOYEE SAVINGS PLAN
Statement of Net Assets Available for Benefits (Concluded)
December 31, 1994
Supplemental Information by Fund (Concluded)
--------------------------------------------
Holding Trust Loan
Account Fund
----------- -----------
ASSETS
- ------
Investments
Enterprise Common Stock............... $ -- $ --
Equities Growth Fund.................. -- --
Balanced Fund......................... -- --
Insurance Annuity Contracts (GICs).... -- --
Stock Index Equities Fund............. -- --
Utilities Equities Fund............... -- --
Government Securities Fund............ -- --
International Stock Fund..............
----------- -----------
Total Investments................ -- --
Participant Loans Receivable.......... -- 6,526,460
Receivable Interest Dividends.......... 495 --
Cash and Temporary Cash Investments... 11,954 --
----------- -----------
Total Assets..................... $ 12,449 $ 6,526,460
----------- -----------
LIABILITIES
- -----------
Due to Active Participants............ $ -- $ --
Purchases of Securities............... -- --
Accounts Payable...................... 5,101 (4,200)
----------- -----------
Total Liabilities................ 5,101 (4,200)
NET ASSETS AVAILABLE FOR BENEFITS..... 7,348 6,530,660
----------- -----------
Total Liabilities and Net Assets
Available for Benefits......... $ 12,449 $ 6,526,460
=========== ===========
<FN>
SEE NOTES TO FINANCIAL STATEMENTS.
PAGE 1 OF 2
PUBLIC SERVICE ELECTRIC AND GAS COMPANY
EMPLOYEE SAVINGS PLAN
Statement of Net Assets Available for Benefits
December 31, 1993
Supplemental Information by Fund
---------------------------------------------------------
Equities Fixed Enterprise
Growth Balanced Income Common Stock
Total Fund A Fund B Fund C Fund D
ASSETS ----------- ------------ ------------ ------------ ------------
- ------
Investments
Enterprise Common Stock.............$ 41,942,976 $ -- $ -- $ -- $ 27,281,344
Equities Growth Fund................ 3,503,930 3,503,930 -- -- --
Balanced Fund....................... 1,803,232 -- 1,803,232 -- --
Insurance Annuity Contracts(GICs)... 60,354,003 -- -- 60,354,003 --
Stock Index Equities Fund........... 10,029,607 -- -- -- --
Utilities Equities Fund............. 2,914,614 -- -- -- --
Government Securities Fund.......... 1,326,589 -- -- -- --
------------ ------------ ------------ ------------ ------------
Total Investments.............. 121,874,951 3,503,930 1,803,232 60,354,003 27,281,344
Participant Loans Receivable........ 4,176,049 -- -- -- --
Receivables-Interest and Dividends.. 1,202,648 10,655 4,029 309,692 457,545
Cash and Temporary Cash Investments. 1,742,300 -- -- 1,318,827 420,027
------------ ------------ ------------ ------------ ------------
Total Assets...................$128,995,948 $ 3,514,585 $ 1,807,261 $ 61,982,522 $ 28,158,916
------------ ------------ ------------ ------------ ------------
LIABILITIES
- -----------
Due to Active Participants..........$ 158,586 $ 4,408 $ 3,492 $ 53,806 $ 20,748
Purchases of Securities............. 840,889 -- -- -- 456,315
Due to (from) Other Funds........... -- 28,162 (16,508) 41,282 85,553
Accounts Payable.................... 10,428 602 274 5,860 1,783
------------ ------------ ------------ ------------ ------------
Total Liabilities.............. 1,009,903 33,172 (12,742) 100,948 564,399
NET ASSETS AVAILABLE FOR BENEFITS... 127,986,045 3,481,413 1,820,003 61,881,574 27,594,517
------------ ------------ ------------ ------------ ------------
Total Liabilities and Net
Assets Available for Benefits..$128,995,948 $ 3,514,585 $ 1,807,261 $ 61,982,522 $ 28,158,916
============ ============ ============ ============ ============
<FN>
SEE NOTES TO FINANCIAL STATEMENTS.
PAGE 2 OF 2
PUBLIC SERVICE ELECTRIC AND GAS COMPANY
EMPLOYEE SAVINGS PLAN
Statement of Net Assets Available for Benefits (Concluded)
December 31, 1993
Supplemental Information by Fund (Concluded)
-----------------------------------------------------------------------
Stock Index Utilities Government
Equities Equities Securities Trust Loan
Fund E Fund F Fund G ESOP Fund Fund
ASSETS ----------- ------------ ------------ ------------ ------------
- ------
Investments
Enterprise Common Stock.............$ -- $ -- $ -- $ 14,661,632 $ --
Equities Growth Fund................ -- -- -- -- --
Balanced Fund....................... -- -- -- -- --
Insurance Annuity Contracts (GICs).. -- -- -- -- --
Stock Index Equities Fund........... 10,029,607
Utilities Equities Fund............. 2,914,614 -- -- --
Government Securities Fund.......... -- -- 1,326,589 -- --
------------ ------------ ------------ ------------ ------------
Total Investments.............. 10,029,607 2,914,614 1,326,589 14,661,632 --
Participant Loans Receivable........ -- -- -- -- 4,176,049
Receivables-Interest and Dividends.. 15,689 374,556 30,468 14 --
Cash and Temporary Cash Investments. -- -- -- 3,446 --
------------ ------------ ------------ ------------ ------------
Total Assets...................$ 10,045,296 $ 3,289,170 $ 1,357,057 $ 14,665,092 $ 4,176,049
------------ ------------ ------------ ------------ ------------
LIABILITIES
- -----------
Due to Active Participants..........$ 11,025 $ -- $ -- $ 65,107 $ --
Purchases of Securities............. -- 358,024 26,550 -- --
Due to (from) Other Funds........... 34,637 8,624 (5,517) (27) (176,206)
Accounts Payable.................... 1,245 353 311 -- --
------------ ------------ ------------ ------------ ------------
Total Liabilities.............. 46,907 367,001 21,344 65,080 (176,206)
NET ASSETS AVAILABLE FOR BENEFITS... 9,998,389 2,922,169 1,335,713 14,600,012 4,352,255
------------ ------------ ------------ ------------ ------------
Total Liabilities and Net
Assets Available for Benefits..$ 10,045,296 $ 3,289,170 $ 1,357,057 $ 14,665,092 $ 4,176,049
============ ============ ============ ============ =============
<FN>
SEE NOTES TO FINANCIAL STATEMENTS.
PAGE 1 OF 3
PUBLIC SERVICE ELECTRIC AND GAS COMPANY
EMPLOYEE SAVINGS PLAN
Statement of Changes in Net Assets Available for Benefits
For the Year Ended December 31, 1994
Supplemental Information by Fund
---------------------------------------------------------
Equities Fixed Enterprise
Growth Balanced Income Common Stock
Total Fund A Fund B Fund C Fund D
------------ ------------ ------------ ------------ ------------
ADDITIONS
- ---------
Participant Deposits............ $ 20,750,375 $ 1,427,695 $ 657,428 $ 11,602,186 $ 2,867,954
Cash Receipts................... 43,371,546 -- -- -- --
Addition to Trust Loan Fund..... 4,702,212 -- -- -- --
Employer Contributions.......... 5,618,255 362,631 176,219 3,257,511 776,492
Interfund Transfers - net....... -- (2,112) (217,393) 1,166,391 (1,772,180)
Participant Loan Repayments..... -- 146,261 62,796 1,206,629 310,648
Total Deposits and ------------ ------------ ------------ ------------ ------------
Contributions.............. 74,442,388 1,934,475 679,050 17,232,717 2,182,914
------------ ------------ ------------ ------------ ------------
Income:
Interest........................ 4,340,788 -- -- 4,317,870 15,804
Dividends....................... 4,373,697 692,609 60,897 -- 1,815,220
Loan Interest Income............ 295,663 18,235 8,868 165,671 40,525
------------ ------------ ------------ ------------ ------------
Total Income............... 9,010,148 710,844 69,765 4,483,541 1,871,549
------------ ------------ ------------ ------------ ------------
Appreciation (Depreciation)
of Investment................. (8,972,959) (780,185) (148,045) -- (4,433,658)
------------ ------------ ------------ ------------ ------------
Total Additions............ 74,479,577 1,865,134 600,770 21,716,258 (379,195)
------------ ------------ ------------ ------------ ------------
DEDUCTIONS
- ----------
Cash Payments................... 43,367,612 -- -- -- --
Withdrawals..................... 8,423,163 220,702 88,027 4,465,784 1,403,859
Dividends paid.................. 866,438 -- -- -- --
Participant Loans............... 4,702,212 291,789 110,268 2,693,210 714,253
Transfer to Thrift & Tax-Def.
Savings Plan.................. 3,985,701 70,898 41,234 1,402,331 1,115,155
Forfeitures..................... 10,842 1,081 87 5,964 1,318
Other........................... (1,674) (37) -- -- --
------------ ------------ ------------ ------------ ------------
Total Deductions........... 61,354,294 584,433 239,616 8,567,289 3,234,585
------------ ------------ ------------ ------------ ------------
INCREASE (DECREASE) IN NET
ASSETS AVAILABLE FOR BENEFITS. 13,125,283 1,280,701 361,154 13,148,969 (3,613,780)
------------ ------------ ------------ ------------ ------------
Net Assets Available for
Benefits Beginning of period.. 127,986,045 3,481,413 1,820,003 61,881,574 27,594,517
------------ ------------ ------------ ------------ ------------
Net Assets Available
for Benefits End of Period.... $141,111,328 $ 4,762,114 $ 2,181,157 $ 75,030,543 $ 23,980,737
============ ============ ============ ============ ============
<FN>
SEE NOTES TO FINANCIAL STATEMENTS.
PAGE 2 OF 3
PUBLIC SERVICE ELECTRIC AND GAS COMPANY
EMPLOYEE SAVINGS PLAN
Statement of Changes in Net Assets Available for Benefits (Continued)
For the Year Ended December 31, 1994
Supplemental Information by Fund (Continued)
-----------------------------------------------------------------------
Stock Index Utilities Government International
Equities Equities Securities Stock
Fund E Fund F Fund G Fund H ESOP Fund
------------ ------------ ------------ ------------ ------------
ADDITIONS
- ---------
Participant Deposits............ $ 2,303,537 $ 894,472 $ 377,839 $ 619,264 $ --
Cash Receipts................... -- -- -- -- --
Addition to Trust Loan Fund..... -- -- -- -- --
Employer Contributions.......... 585,522 226,958 96,858 136,064 --
Interfund Transfers - net....... (376,887) (792,058) (338,482) 2,845,085 (512,364)
Participant Loan Repayments..... 291,041 76,668 40,658 67,460 --
Total Deposits and ------------ ------------ ------------ ------------ ------------
Contributions.............. 2,803,213 406,040 176,873 3,667,873 (512,364)
------------ ------------ ------------ ------------ ------------
Income:
Interest........................ -- -- -- -- 491
Dividends....................... 392,057 257,951 94,001 194,269 866,438
Loan Interest Income............ 40,797 10,060 4,721 6,786 --
------------ ------------ ------------ ------------ ------------
Total Income............... 432,854 268,011 98,722 201,055 866,929
------------ ------------ ------------ ------------ ------------
Appreciation (Depreciation)
of Investment................. (237,589) (455,881) (228,074) (302,370) (2,382,056)
------------ ------------ ------------ ------------ ------------
Total Additions............ 2,998,478 218,170 47,521 3,566,558 (2,027,491)
------------ ------------ ------------ ------------ ------------
DEDUCTIONS
- ----------
Cash Payments................... -- -- -- -- --
Withdrawals..................... 547,562 184,589 37,778 94,878 1,217,643
Dividends paid.................. -- -- -- -- 866,438
Participant Loans............... 562,805 148,704 52,941 128,242 --
Transfer to Thrift & Tax Def.
Savings Plan.................. 408,038 56,300 12,088 162,777 557,575
Forfeitures..................... 1,700 309 383 -- --
Other........................... -- -- -- -- --
------------ ------------ ------------ ------------ ------------
Total Deductions........... 1,520,105 389,902 103,190 385,897 2,641,656
------------ ------------ ------------ ------------ ------------
INCREASE (DECREASE) IN NET
ASSETS AVAILABLE FOR BENEFITS. 1,478,373 (171,732) (55,669) 3,180,661 (4,669,147)
------------ ------------ ------------ ------------ ------------
Net Assets Available for
Benefits Beginning of period.. 9,998,389 2,922,169 1,335,713 -- 14,600,012
------------ ------------ ------------ ------------ ------------
Net Assets Available
for Benefits End of Period.... $ 11,476,762 $ 2,750,437 $ 1,280,044 $ 3,180,661 $ 9,930,865
============ ============ ============ ============ ============
<FN>
SEE NOTES TO FINANCIAL STATEMENTS.
PAGE 3 OF 3
PUBLIC SERVICE ELECTRIC AND GAS COMPANY
EMPLOYEE SAVINGS PLAN
Statement of Changes in Net Assets Available for Benefits (Concluded)
For the Year Ended December 31, 1994
Supplemental Information by Fund (Concluded)
-----------------------------------------------------------------------
Holding Trust Loan
Account Fund
------------ ------------
- ---------
Participant Deposits............. $ -- $ --
Cash Receipts.................... 43,371,546 --
Addition to Trust Loan Fund...... -- 4,702,212
Employer Contributions........... -- --
Interfund Transfers - net........ -- --
Participant Loan Repayments...... -- (2,202,161)
Total Deposits and ------------ ------------
Contributions............... 43,371,546 2,500,051
------------ ------------
Interest......................... 6,623 --
Dividends........................ 255 --
Loan Interest Income.............. -- --
------------ ------------
Total Income................ 6,878 --
------------ ------------
Appreciation (Depreciation)
of Investment.................. (5,101) --
------------ ------------
Total Additions............. 43,373,323 2,500,051
------------ ------------
DEDUCTIONS
- ----------
Cash Payments.................... 43,367,612 --
Withdrawals...................... -- 162,341
Dividends paid................... -- --
Participant Loans................ -- --
Transfer to Thrift & Tax Def.
Savings Plan................... -- 159,305
Forfeitures....................... -- --
Other............................ (1,637) --
------------ ------------
Total Deductions............ 43,365,975 321,646
------------ ------------
INCREASE (DECREASE) IN NET
ASSETS AVAILABLE FOR BENEFITS.. 7,348 2,178,405
------------ ------------
Net Assets Available for
Benefits Beginning of period... -- 4,352,255
------------ ------------
Net Assets Available
for Benefits End of Period..... $ 7,348 $ 6,530,660
============ ============
<FN>
SEE NOTES TO FINANCIAL STATEMENTS.
PAGE 1 OF 2
PUBLIC SERVICE ELECTRIC AND GAS COMPANY
EMPLOYEE SAVINGS PLAN
Statement of Changes in Net Assets Available for Benefits
For the Year Ended December 31, 1993
Supplemental Information by Fund
---------------------------------------------------------
Equities Fixed Enterprise
Growth Balanced Income Common Stock
Total Fund A Fund B Fund C Fund D
------------ ------------ ------------ ------------ ------------
ADDITIONS
- ---------
Participant Deposits........... $ 18,038,129 $ 1,157,304 $ 567,298 $ 10,676,400 $ 2,608,168
Addition to Trust Loan Fund.... 2,712,252
Employer Contributions......... 4,039,976 240,564 121,763 2,465,262 581,839
Interfund Transfers - net...... -- (26,621) 169,501 (1,117,837) (92,738)
Participant Loan Repayments.... -- 94,691 43,979 881,011 177,996
Total Deposits and ------------ ------------ ------------ ------------ ------------
Contributions............. 24,790,357 1,465,938 902,541 12,904,836 3,275,265
------------ ------------ ------------ ------------ ------------
Income:
Interest....................... 3,900,526 -- -- 3,899,073 1,213
Dividends...................... 3,685,716 372,225 84,603 -- 1,742,504
Loan Interest Income........... 215,211 13,124 6,129 133,454 27,499
------------ ------------ ------------ ------------ ------------
Total Income.............. 7,801,453 385,349 90,732 4,032,527 1,771,216
------------ ------------ ------------ ------------ ------------
Net Appreciation (Depreciation)
of Investment................ 1,616,271 (233,430) (3,851) -- 716,928
------------ ------------ ------------ ------------ ------------
Total Additions........... 34,208,081 1,617,857 989,422 16,937,363 5,763,409
------------ ------------ ------------ ------------ ------------
DEDUCTIONS
- ----------
Withdrawals.................... 6,583,739 92,960 59,499 3,414,652 1,424,110
Dividends paid................. 1,020,792 -- -- -- --
Participant Loans.............. 2,712,252 125,065 50,445 1,564,562 499,246
Other.......................... 10,634 602 274 5,860 1,783
------------ ------------ ------------ ------------ ------------
Total Deductions.......... 10,327,417 218,627 110,218 4,985,074 1,925,139
------------ ------------ ------------ ------------ ------------
INCREASE (DECREASE) IN
NET ASSETS AVAILABLE
FOR BENEFITS................. 23,880,664 1,399,230 879,204 11,952,289 3,838,270
------------ ------------ ------------ ------------ ------------
Net Assets Available for
Benefits
Beginning of period............ 104,105,381 2,082,183 940,799 49,929,285 23,756,247
------------ ------------ ------------ ------------ ------------
Net Assets Available
for Benefits
End of Period.................. $127,986,045 $ 3,481,413 $ 1,820,003 $ 61,881,574 $ 27,594,517
============ ============ ============ ============ ============
<FN>
SEE NOTES TO FINANCIAL STATEMENTS.
PAGE 2 OF 2
PUBLIC SERVICE ELECTRIC AND GAS COMPANY
EMPLOYEE SAVINGS PLAN
Statement of Changes in Net Assets Available for Benefits (Concluded)
For the Year Ended December 31, 1993
Supplemental Information by Fund (Concluded)
-----------------------------------------------------------------------
Stock Index Utilities Government
Equities Equities Securities Trust Loan
Fund E Fund F Fund G ESOP Fund Fund
------------ ------------ ------------ ------------ ------------
ADDITIONS
- ---------
Participant Deposits........... $ 1,952,865 $ 747,871 $ 328,223 $ -- $ --
Addition to Trust Loan Fund.... -- -- -- -- 2,712,252
Employer Contributions......... 412,534 150,258 67,756 -- --
Interfund Transfers - net...... 377,378 678,761 270,584 (259,028) --
Participant Loan Repayments.... 164,515 41,136 19,721 -- (1,423,049)
Total Deposits and ------------ ------------ ------------ ------------ ------------
Contributions............. 2,907,292 1,618,026 686,284 (259,028) 1,289,203
------------ ------------ ------------ ------------ ------------
Income:
Interest....................... -- -- -- 240 --
Dividends...................... 38 377,991 87,563 1,020,792 --
Loan Interest Income........... 25,053 6,774 3,178 -- --
------------ ------------ ------------ ------------ ------------
Total Income.............. 25,091 384,765 90,741 1,021,032 --
------------ ------------ ------------ ------------ ------------
Net Appreciation (Depreciation)
of Investment................ 813,700 (225,924) (19,502) 568,350 --
------------ ------------ ------------ ------------ ------------
Total Additions........... 3,746,083 1,776,867 757,523 1,330,354 1,289,203
------------ ------------ ------------ ------------ ------------
DEDUCTIONS
- ----------
Withdrawals.................... 370,906 47,133 18,701 1,155,778 --
Dividends paid................. -- -- -- 1,020,792 --
Participant Loans.............. 376,505 70,346 26,083 -- --
Other.......................... 1,245 451 419 -- --
------------ ------------ ------------ ------------ ------------
Total Deductions.......... 748,656 117,930 45,203 2,176,570 --
------------ ------------ ------------ ------------ ------------
INCREASE (DECREASE) IN
NET ASSETS AVAILABLE
FOR BENEFITS................. 2,997,427 1,658,937 712,320 (846,216) 1,289,203
------------ ------------ ------------ ------------ ------------
Net Assets Available for
Benefits
Beginning of period............ 7,000,962 1,263,232 623,393 15,446,228 3,063,052
------------ ------------ ------------ ------------ ------------
Net Assets Available
for Benefits
End of Period.................. $ 9,998,389 $ 2,922,169 $ 1,335,713 $ 14,600,012 $ 4,352,255
============ ============ ============ ============ ============
<FN>
SEE NOTES TO FINANCIAL STATEMENTS.
NOTES TO FINANCIAL STATEMENTS
1. SUMMARY OF THE PLAN
The Board of Directors of Public Service Electric and Gas Company (PSE&G
or the Company) adopted the Public Service Electric and Gas Company
Employee Savings Plan (Plan) to encourage thrift and savings by eligible
bargaining unit employees of PSE&G (Eligible Employees). It was first
offered to Eligible Employees in November 1987 as a result of collective
bargaining, and contributions began in January 1988. The Plan was last
amended April 10, 1995 to permit, among other things, participation in the
Plan by Affiliates of PSE&G and their bargaining unit employees (each such
participating Affiliate with PSE&G, an "Employer"). Participation in the
Plan is entirely voluntary, except with respect to those employees who
participate in the Employee Stock Ownership Plan (ESOP) Fund as a result
of their participation in PSE&G's TRASOP and/or PAYSOP, which plans were
merged into the Plan. Eligible Employees are those employees covered by
a collective bargaining agreement and who have completed 1,000 hours of
service with an Employer. Certain Eligible Employees may also elect to
have a distribution from another qualified corporate plan contributed as
a rollover contribution with the approval of PSE&G's Employee Benefits
Committee (Committee), the Plan Administrator. The Plan's Trust Fund
consists of the Savings Account Fund and the ESOP Fund, which are
separately maintained.
Under the Plan, participating Eligible Employees (Participants) may elect
to make basic deposits to Investment Funds of such Participants' choosing
within the Savings Account of 1%, 2%, 3%, 4%, or 5% of their compensation
(Basic Deposits), and the Employer will contribute an amount equal to 45%
thereof (35% prior to 5/1/94 and 50%, effective 5/1/95), subject to certain
exceptions and limitations (Employer Contributions). In addition,
Participants may elect to make supplemental deposits to their Savings
Accounts in increments of 1% of Compensation up to an additional 10% (20%
starting in 1995)of Compensation (Supplemental Deposits), subject to
certain limitations, without any corresponding matching Employer
Contribution. Participants may designate such Basic and/or Supplemental
Deposits as Nondeferred (post-income tax contributions) or Deferred (pre-
income tax contributions).
In the case of Participants employed by CEA Newark Bay Services, Inc.,
(which adopted the Plan effective January 1, 1995) they may elect to make
basic deposits to Investment Funds of such Participants choosing within the
Savings Account of 1%, 2%, 3%, 4%, 5%, 6% of their Basic Deposits, and the
Employer will contribute an amount equal to 50% thereof, subject to certain
exceptions and limitations (Employer Contributions). In addition,
Participants may elect to make supplemental deposits to their Savings
Account in increments of 1% of Compensation up to an additional
NOTES TO FINANCIAL STATEMENTS -(Continued)
19% of Compensation (Supplemental Deposits), subject to certain
limitations, without any corresponding matching Employer Contribution.
Participants may designate such Basic and/or Supplemental Deposits as
Nondeferred (post-income tax contributions) or Deferred (pre-income tax
contributions).
Starting January 1, 1995 each Participant may, within any Plan Year, make
one or more Additional Lump Sum Deposits on a Nondeferred basis in the
minimum amount of $250 and in such total amounts which, when aggregated
with such Participant's Basic Deposits and Supplemental Deposits, do not
exceed 25% of his or her Compensation for that Plan Year.
The maximum amount of Deferred Deposits to a Participant's Savings Account
may have to be limited to less than 15% of Compensation to meet
requirements of the Internal Revenue Code of 1986, as amended (IRC). The
extent of any such limitation will be determined from time to time by the
Committee based on the actual pattern of Deferred Deposits by all
Participants. If the maximum permitted percentage of Compensation for
Savings Account Deferred Deposits is reduced, then all Deferred Deposits
in excess of such percentage will automatically be treated as Nondeferred
Deposits. This will result in taxable income to the affected Participants
for Deferred Deposits in excess of any limit so established. The Committee
will attempt to assure that any such limitation will apply only to future
contributions, but it is possible that, in order to meet requirements of
the IRC, the limitation will, in some circumstances, have to be applied
retroactively.
Deferred Deposits may not generally be withdrawn until age 59-1/2.
Nondeferred Deposits, on the other hand, may be withdrawn at any time
subject to certain penalties and restrictions.
Savings Account Deposits are made through payroll deductions by the
Employer, rollover contributions from other qualified plans and, starting
January 1, 1995, Additional Lump Sum Deposits. Deposits by Participants
and Employer Contributions are transferred to a Trustee and separately held
in the Plan's Savings Account Fund of the Trust Fund for investment and
other transactions, as directed by Participants. Participants are entitled
to choose from among the Investment Funds offered under the Plan in which
to invest Deposits and Employer Contributions.
Bankers Trust Company is the Trustee of the Trust Fund established pursuant
to the Plan.
NOTES TO FINANCIAL STATEMENTS -(Continued)
Loan Provisions
The Trustee may, subject to the approval of PSE&G's General Manager
Compensation and Benefits, lend a Participant an amount up to 50% of the
value of the vested portion of such Participant's Savings Account and ESOP
Fund, but no more than the aggregate value of such Participant's Savings
Account or $50,000, whichever is less. Any Participant loan must be for
a principal amount of $1,000 or more and no Participant may have more than
two loans outstanding at any time. All loans, including interest thereon,
must be repaid by payroll deductions in equal monthly installments of 12,
24, 36, 48 or 60 months as selected by the Participant. However, a
Participant may repay any such loan in full by check at any time (beginning
January 1, 1995, partial lump sum payments are also accepted) in accordance
with such rules as may be prescribed by the Committee. A Participant may
not apply for more than one loan in any calendar year. A loan to a
Participant is considered an investment of such Participant's Savings
Account and repayments of principal of any loan, together with interest
thereon, are invested in the Savings Account Investment Funds of the Plan
in accordance with the Participant's then-current investment direction for
Deposits and Employer Contributions.
Each loan bears interest at a rate fixed from time to time by the Committee
taking into consideration interest rates currently then being charged. The
rate of interest applicable to any loan at its inception remains in effect
for the duration of such loan. During 1994, the rate of interest on loans
granted to Participants, by quarter and starting with the first quarter,
was 6%, 6-1/4%, 7-1/4%, 7-3/4%. (See Note 2. SIGNIFICANT ACCOUNTING
POLICIES - Loans.)
2. SIGNIFICANT ACCOUNTING POLICIES
The financial statements of the Plan have been prepared in accordance with
generally accepted accounting principles.
Dividends and Interest
Dividends, interest, and other income attributable to each Investment Fund
of the Plan are reinvested in that Investment Fund to the extent not used
to pay direct expenses of that Fund. (See Expenses of Plan, below.)
All Deposits and Employer Contributions to Fixed Income Fund C earn
interest at the composite rate of all Guaranteed Investment Contracts of
insurance companies (GICs) in which the assets of such fund are then
invested. Such rate varies, as such GICs mature or are entered into and as
Deposits and Employer Contributions are made to and withdrawn from such
GICs. Under the GICs in effect during 1994, the composite rate of interest
earned by such assets so invested was not less than 6.64%.
ESOP Fund Participants receive quarterly payments directly from the
Trustee equal to the dividends paid to the Trustee on the shares of Common
Stock of Public Service Enterprise Group Incorporated (Enterprise), the
parent of PSE&G, held for their ESOP Fund.
NOTES TO FINANCIAL STATEMENTS -(Continued)
Valuation of Investments
Investments of Equities Growth Fund A, Balanced Fund B, Enterprise Common
Stock Fund D, Stock Index Equities Fund E, Utilities Equities Fund F,
Government Securities Fund G, International Stock Fund H, and the shares
of Enterprise Common Stock held by the ESOP Fund are based upon quoted
market values. The Plan has invested the assets of Fixed Income Fund C in
GICs. The value of Fixed Income Fund C is based on the contract value of
all GICs in which the assets of the fund are invested. Temporary
investments are valued at cost which approximates fair market value.
Securities transactions are accounted for on the trade date.
In September 1994, the American Institute of Certified Public Accountants
issued Statement of Position 94-4 (SOP94-4), "Reporting of Investment
Contracts Held by Health and Welfare Benefit Plans and Defined-Contribution
Pension Plans" which requires investment contracts issued by either an
insurance enterprise or other entity to be reported at either fair value
or contract value. SOP 94-4 is effective for plan years beginning after
December 15, 1994, except that the application to investment contracts
entered into before December 31, 1993, is delayed to plan years beginning
after December 15, 1995. The Plan is currently evaluating what impact, if
any, the adoption of SOP 94-4 will have on the financial statements of the
Plan as of and for the year ended December 31, 1995.
The Plan's financial statements have been prepared in accordance with
financial reporting requirements of the Employee Retirement Income Security
Act of 1974, as amended, (ERISA) as permitted by the applicable rules.
Under such requirements, realized gains and losses from securities
transactions are computed using an adjusted cost basis as prescribed by the
Department of Labor's (DOL) Rules and Regulations for Reporting and
Disclosure. The adjusted cost is the fair value of the security at the
beginning of the Plan year, or cost if acquired since that date. Unrealized
gains and losses on securities held for investment are computed on the
basis of the change in fair value between the beginning and ending of the
Plan year. These changes had no material effect on net assets available
for Plan benefits.
Expenses of Plan
All expenses incurred in connection with the administration of the Plan,
including expenses of the Trustee, but excluding brokerage commissions and
taxes relating to the sale of shares of Enterprise Common Stock at the
direction of Participants, were paid directly by PSE&G.
The assets of Common Stock Fund D and the ESOP Fund are invested in shares
of Enterprise Common Stock. Shares of Enterprise Common Stock required for
Fund D are purchased by the Trustee either directly from Enterprise at its
sole discretion, on the open market through a broker or from the ESOP Fund.
NOTES TO FINANCIAL STATEMENTS -(Continued)
All shares sold for Common Stock Fund D and the ESOP Fund are sold by the
Trustee on the open market through a broker. Brokerage commissions and
taxes are paid by the Participants. However, in situations where the ESOP
is in a "sell" position and Fund D is in a "buy" position, Fund D will buy
from the ESOP at the closing price on the N.Y. Stock Exchange. In such
case, no brokerage commissions will be charged in the transaction.
Loans
A loan to a Participant is considered an investment of such Participant's
Savings Account and the principal amount of the loan is treated as a
separate investment within the various sub-accounts of the Participant's
Savings Account. Repayments of the principal amount of the loan are
credited to each such sub-account, and repayments of principal along with
any accrued interest thereon are invested in the Plan's Investment Funds
in the same manner as the Participant's then current-investment direction
for Deposits and Employer Contributions.
Loan amounts are taken from sub-accounts of a Participant's Savings Account
in the following order:
(a) Deferred Deposits
(b) Unmatured vested Employer Contributions
(c) Matured vested Employer Contributions
(d) Rollover Contributions
(e) Unmatured post-1986 Nondeferred Deposits
(f) Matured post-1986 Nondeferred Deposits
(g) Pre-1987 Nondeferred Deposits
Each loan is secured by an assignment of the Participant's entire right,
title and interest in and to the Trust Fund to the extent of the loan and
accrued interest thereon (See Note 1. SUMMARY OF THE PLAN - Loan
Provisions).
Interfund Transfers - ESOP Fund to Savings Account
Participants are permitted to transfer all, but not less than all, shares
from their ESOP Funds to their Savings Accounts. To effect such transfers,
the Trustee will sell the shares of Enterprise Common Stock held in the
ESOP Fund and invest the proceeds in the Savings Account Funds designated
by the Participant. The cash value of each share of Enterprise Common Stock
so transferred will be equal to the price per share of Enterprise Common
Stock actually received by the Trustee. Any such transfer is treated as a
rollover contribution.
Vesting
Employer Contributions to a Participant's Savings Account are immediately
vested upon a Participant's completion of five years of service with an
Employer or when a Participant is eligible for an immediately payable
retirement benefit, attains age 65, is disabled, is laid off or dies. All
amounts credited to a Participant's ESOP Fund are fully vested.
NOTES TO FINANCIAL STATEMENTS -(Continued)
Penalties upon Withdrawal
However, if a Participant withdraws his entire vested Employer
Contributions and/or Deposits before they have been in the Plan for two
full calendar years, such Participant loses the matching Employer
Contributions on Deposits made during the subsequent three months.
Distributions to Participants electing to withdraw Nondeferred Deposits and
Employer Contributions are made as soon as practicable after such elections
are received by the Plan Administrator. Nondeferred Deposits may be
withdrawn at any time but certain penalties may apply. Deferred Deposits
may not be withdrawn during employment prior to age 59-1/2 except for
reasons of extraordinary financial hardship and to the extent permitted by
the IRC. Distributions to Participants of approved hardship withdrawals
are made as soon as practicable after such approval.
Benefits Payable
The AICPA Audit and Accounting Guide, requires that benefits payable to
persons who are not active participants in a defined contribution plan be
disclosed in the footnotes to the financial statements rather than be
recorded as a liability of the Plan. As of December 31, 1994, and December
31, 1993, the net assets available for benefits included benefits due to
Participants who are no longer active Participants in the Plan in the
amounts of $195,358 and $747,418, respectively.
3. INVESTMENTS
The financial statements of the Plan include the following:
a. Savings Account Investment Funds
(1) The assets of Equities Growth Fund A are invested in the
capital stock of the Twentieth Century Investors Inc.
Growth Fund (the "Twentieth Century Growth Fund") a no-
load, open-ended investment company or mutual fund. The
prospectus for the Twentieth Century Growth Fund indicates
that such fund invests primarily in the common stock of
companies considered by its investment manager to have
above average potential for capital appreciation.
(2) The assets of Balanced Fund B are invested in the capital
stock of Phoenix Series Fund Balanced Series (the "Phoenix
Balanced Fund") a no-load, open-ended investment company or
mutual fund. The prospectus for the Phoenix Balanced Fund
indicates that such fund invests primarily in a combination
of equity and fixed income debt securities that its
investment manager expects to provide current income along
with long-term capital growth and conservation of capital.
NOTES TO FINANCIAL STATEMENTS -(Continued)
(3) The assets of Fixed Income Fund C are invested in GICs with
various insurance companies which contractually provide for
a guarantee of principal and interest for the respective
contract periods.
The following GICs are continuing:
(i) A four and one-half year contract expiring June
30, 1996 and a five and one-half year contract
expiring June 30, 1997, with Provident National
Assurance Company, effective interest rates of
6.62% and 6.80%, respectively;
(ii) A four-year contract which will expire on
December 31, 1997, with Metropolitan Life
Insurance Company, effective interest rate of
5.72%;
(iii) A four-year contract which will expire January 1,
1996, with John Hancock Mutual Life Insurance
Company, effective interest rate of 6.10%.
(iv) A five-year contract which will expire January 1,
1997, with Principal Mutual Life Insurance
Company, effective interest rate of 6.80%;
(v) A five-year contract which will expire January 4,
1999, with Allstate Life Insurance Company,
effective interest rate of 5.65%; and
(vi) A five-year contract which will expire June 30,
1999, with New York Life Insurance Company,
effective interest rate of 7.07%.
(4) The assets of Enterprise Common Stock Fund D are invested
by the Trustee in Enterprise Common Stock.
(5) The assets of Stock Index Equities Fund E are invested by
the Trustee in BT Institutional Equity 500 Index Fund
("Stock Index Equities Fund"), a no-load mutual fund
managed by Bankers Trust Company so as to achieve the
approximate return of the Standard and Poor's 500 Composite
Stock Price Index.
NOTES TO FINANCIAL STATEMENTS -(Continued)
(6) The assets of Utilities Equities Fund F are invested in the
capital stock of Fidelity Income Fund Utilities (the
"Fidelity Utilities Fund"), a no-load, open-ended
investment company or mutual fund. The prospectus for the
Fidelity Utilities Fund indicates that such fund invests
primarily in equity securities of gas and electric utility
companies and companies engaged in the communications
field. The Fidelity Utilities Fund may, from time to time,
include shares of Enterprise Common Stock or PSE&G
preferred stock.
(7) The assets of Government Securities Fund G are invested in
the capital stock of Weiss, Peck and Greer Mutual Fund's
Government Securities Fund (the "WPG Government Securities
Fund"), a no-load, open-ended investment company or mutual
fund. The prospectus for the WPG Government Securities Fund
indicates that such fund invests primarily in debt
obligations issued or guaranteed by the U.S. Government,
its agencies or instrumentalities which have remaining
maturities of one year or more.
(8) The assets of International Stock Fund H are invested in
the capital stock of T. Rowe Price International Funds Inc.
(the T. Rowe Price International Stock Fund"), a no-load,
open-ended investment company or mutual fund. The
prospectus for T. Rowe Price International Stock Fund
indicates that such fund invests primarily in common stocks
of established, non-U.S. companies.
NOTES TO FINANCIAL STATEMENTS -(Continued)
b. ESOP FUND
Shares of Enterprise Common Stock held as assets of the Plan's
ESOP Fund were transferred to the Plan in 1988 as a result of
the spin-off and merger with the Plan of the bargaining unit
portions of the PSE&G's former TRASOP and PAYSOP. No additional
contributions in or transfers into the ESOP Fund are presently
permitted or were allowed during 1994.
c. PARTICIPANTS
Participants
As of December 31,
------------------------
1994 1993 1992
------ ------ ------
Total Plan Participants............ 8,138 7,965 7,209
Participants by Fund
--------------------
Equities Growth Fund A ............ 1,165 1,020 758
Balanced Fund B ................... 690 660 439
Fixed Income Fund C ............... 4,801 4,942 4,807
Enterprise Common Stock Fund D .... 2,709 2,987 2,704
Stock Index Equities Fund E ....... 1,826 1,850 1,585
Utilities Equities Fund F ......... 876 896 519
Government Securities Fund G ...... 431 415 290
International Stock Fund H (1)..... 706 -- --
ESOP Fund ......................... 1,426 1,690 1,822
-----------------------------------
(1) New investment option in 1994
4. UNIT VALUE INFORMATION - SAVINGS ACCOUNT INVESTMENT FUNDS
Unit values of the Investment Funds were determined the last business day
of each month and, starting February 1, 1994 have been determined at the
end of each business day (Valuation Date) by dividing the market value of
net assets available for benefits by the number of units allocated to all
Participants as of the respective Valuation Date.
New units are allocated to each Participant's Savings Account monthly and
starting February 1, 1994, have been allocated at the end of each business
day by dividing Deposits made by, or on behalf of, such Participant for
such month or business day and the related Employer Contributions, if any,
together with repayment of the principal amount of any loan to the
Participant's Savings Account including interest earned thereon during the
month or business day, respectively, by the unit value determined as of the
end of the Valuation Date. If a Participant makes a transfer between
Investment Funds, makes a withdrawal, receives a distribution or a loan,
or makes a rollover contribution, the amount so transferred, withdrawn,
distributed, loaned, or rolled over is also determined by the unit value
of each Investment Fund as of the applicable Valuation Date for such
transaction.
NOTES TO FINANCIAL STATEMENTS -(Continued)
The Investment Fund unit information as of the last business day of each
year is as follows:
Investment Fund Year Unit Value Number of Units
- --------------- ---- ---------- ---------------
(Dollars)
Equities Growth Fund A.......... 1994 18.740000 254,061.739
1993 10.000000 347,435.857
1992 1.024268 2,032,849.041
Balanced Fund B ................ 1994 14.830000 147,009.844
1993 10.000000 181,026.753
1992 1.079134 871,809.551
Fixed Income Fund C............. 1994 10.625695 6,973,763.974
1993 10.000000 6,143,922.175
1992 1.561574 31,973,690.038
Enterprise Common Stock Fund D.. 1994 9.472822 2,476,796.460
1993 10.000000 2,747,032.952
1992 1.794902 13,235,402.932
Stock Index Equities Fund E..... 1994 10.440000 1,098,682.137
1993 10.000000 998,756.270
1992 2.043185 3,426,494.513
Utilities Equities Fund F ...... 1994 13.060000 210,211.776
1993 9.699076 301,270.143
1992 1.067409 1,183,456.011
Government Securities Fund G ... 1994 9.012366 141,839.889
1993 10.000000 133,564.887
1992 1.076746 578,960.254
International Stock Fund H (1).. 1994 11.320000 280,977.378
- -------------------------------
(1) New investment option in 1994
ESOP FUND VALUATION
Enterprise Common Stock share value is determined by using the closing
market price on the New York Stock Exchange as reported in the Wall Street
Journal as Composite Transactions. If a Participant withdraws shares, the
shares are, at Participant's election, either distributed to such
Participant or sold by the Trustee and the proceeds, net of commissions and
taxes, are distributed to the Participant.
NOTES TO FINANCIAL STATEMENTS -(Continued)
The ESOP Fund information as of the last business day of each year is as
follows:
Year Price per share Number of Shares
---- --------------- ----------------
ESOP Fund 1994 $26.500 374,336
1993 $32.000 451,466
1992 $30.875 500,283
5. FEDERAL INCOME TAXES
The Company believes that the Plan and its related Trust, including the
portions of the former TRASOP and PAYSOP applicable to bargaining unit
Participants, which portions were spun-off and merged with the Plan
effective January 1, 1988, are qualified under Sections 401(a) and 501(a)
of the IRC and, as such, the Plan is exempt from taxation on its earnings.
A determination letter to such effect was obtained from the Internal
Revenue Service (IRS) in 1988. Participants are not taxed either on
Company Contributions or on the earnings credited to their Savings Account,
until distribution of such Savings Account. On December 30, 1994, the
Company submitted an application to the IRS for a determination that the
Plan and Trust continue to be qualified under applicable law.
6. COMPLIANCE WITH ERISA
The Plan is generally subject to the provisions of Titles I and II of
ERISA, including the provisions with respect to reporting, disclosure,
participation, vesting and fiduciary responsibility. However it is not
subject to the funding requirements of Title I, and benefits under the Plan
are not guaranteed by the Pension Benefit Guarantee Corporation under Title
IV of ERISA.
7. SUBSEQUENT EVENTS
The assets of Fixed Income Fund C will be invested after December 31, 1994
in GICs with the following insurance companies which contractually provide
for a return of principal and a fixed interest rate for the contract
period:
Effective January 1, 1995, a five year contract expiring December 31,
1999 with Metropolitan Life Insurance Company, effective interest rate
of 8.12%.
Effective January 1, 1995, a five year contract expiring December 31,
1999 with The Prudential Life Insurance Company, effective interest
rate of 8.01%
Starting January 18, 1995 the following new investment fund became
available:
The assets of Government Securities Fund G were transferred from
the Weiss Peck and Greer Mutual Fund's Government Securities
Fund to the Voyageur U.S. Government Securities Fund (the
"Voyageur U.S. Government Securities Fund") an open-end
investment Company or mutual fund.
PUBLIC SERVICE ELECTRIC AND GAS COMPANY
EMPLOYEE SAVINGS PLAN
SCHEDULE OF ASSETS HELD FOR INVESTMENT - ITEM 27a
DECEMBER 31, 1994
Identity of Issue Units/Shares Historical Cost Market Value Unit Value
- ----------------- ------------ --------------- ------------ -----------
Equities Growth Fund A.................. 254,062 $ 5,689,495 $ 4,761,117 $ 18.74
---------- ------------ ------------ -----------
Balanced Fund B......................... 147,010 $ 2,308,279 $ 2,180,156 $ 14.83
---------- ------------ ------------ -----------
Fixed Income Fund C (Insurance
Annuity Contracts-GICs):
Provident National Assurance Company
-- 6.80%, four and one-half year
contract expiring 6/30/97.......... 10,172,794 $ 10,172,794 $ 10,172,794 --
-- 6.62%, four and one half-year
contract expiring 6/30/96.......... 5,653,051 $ 5,653,051 $ 5,653,051 --
Metropolitan Life Insurance Company
-- 5.72%, four-year contract
expiring 12/31/97.................. 5,261,902 $ 5,261,902 $ 5,261,902 --
Prudential Life Insurance Company
-- 8.98%, four-year contract
expiring 12/31/94.................. 10,084,866 $ 10,084,866 $ 10,084,866 --
Principal Mutual Life Insurance Company
-- 6.80%, five-year contract
expiring 1/1/97.................... 8,888,357 $ 8,888,357 $ 8,888,357 --
John Hancock Mutual Life
Insurance Company
-- 6.10%, four-year contract
expiring 1/1/96.................... 10,976,332 $ 10,976,332 $ 10,976,332 --
Allstate Life Insurance Company
-- 5.65%, five-year contract
expiring 1/4/99.................... 12,590,164 $ 12,590,164 $ 12,590,164 --
New York Life Insurance Company
-- 7.07%, five-year contract
expiring 6/30/99................... 10,473,623 $ 10,473,623 $ 10,473,623 --
---------- ------------ ------------ -----------
74,101,089 $ 74,101,089 $ 74,101,089 $ 1.00
---------- ------------ ------------ -----------
Equities Fund D (Common Stock
of Public Service Enterprise
Group, Inc.).......................... 885,368 $ 24,781,619 $ 23,462,252 $ 26.50
---------- ------------ ------------ -----------
Equities Fund E (BT Institutional Equity
Index Fund)........................... 1,098,682 $ 11,774,753 $ 11,470,242 $ 10.44
---------- ------------ ------------ -----------
Utilities Equities Fund F............... 210,212 $ 3,121,895 $ 2,745,366 $ 13.06
---------- ------------ ------------ -----------
Government Securities Fund G............ 141,840 $ 1,461,508 $ 1,278,313 $ 9.01
---------- ------------ ------------ -----------
International Stock Fund H.............. 280,977 $ 3,476,716 $ 3,180,664 $ 11.32
---------- ------------ ------------ -----------
Employee Stock Ownership Plan
(Common Stock of Public Service
Enterprise Group, Inc.)............... 374,336 $ 3,971,459 $ 9,919,904 $ 26.50
---------- ------------ ------------ -----------
Total Investments.................. -- $130,686,813 $133,099,103 --
Loans to Participants (interest rates
ranging from 6% to 7.75%, maturity
date of one to five years).......... -- $ 6,526,460 $ 6,526,460 --
---------- ------------ ------------ -----------
Total Assets Held for Investment... -- $137,213,273 $139,625,563 --
========== ============ ============ ===========
<FN>
Required by Department of Labor Regulation 2520.103-10(b)(6).103-6.
PUBLIC SERVICE ELECTRIC AND GAS COMPANY
EMPLOYEE SAVINGS PLAN
SCHEDULE OF REPORTABLE CUMULATIVE TRANSACTIONS FOR THE YEAR
ENDED DECEMBER 31, 1994* - Item 27d
Number Number Value Value
of of of of
Security Purchases Sales Purchases Sales Net Gain
- -------- --------- --------- ----------- ----------- ------------
Investment Contracts:
Metropolitan Life
Insurance Company............ 1 7 $ 62,241 $ 8,530,930
Allstate Life Insurance
Company...................... 17 2 $15,045,983 $ 2,455,820
New York Life Insurance
Company...................... 24 6 $11,066,570 $ 592,948
Public Service Enterprise
Group Inc. Holding Company... 88 110 $ 3,654,755 $ 3,405,361 $ 1,026,125
BT Institutional Directed
Account Cash Fund.............. 334 449 $45,655,783 $46,329,650 --
BT Institutional Equity Index
Fund......................... 0 3 -- $10,141,502 $ 2,245,542
PSE&G Participant Loan......... 469 199 $ 4,780,389 $ 2,392,190 --
SCHEDULE OF REPORTABLE INDIVIDUAL TRANSACTIONS FOR THE YEAR
ENDED DECEMBER 31, 1994* Item 27d
Purchase Sales Net Gain
------------ ------------ -----------
BT Institutional Equity Index Fund... $10,099,457 $ 2,235,982
Allstate Life Insurance Company...... $ 9,000,000
Metropolitan Life Insurance Company.. $ 8,530,930
* Reportable transactions as required by ERISA consist of any transaction or
series of transactions within the plan year with the same person or entity
which, when aggregated, involves an amount that is in excess of 5% of the
current value of plan assets at the beginning of the plan year.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
trustees (or other persons who administer the Plan) have duly caused this
annual report to be signed by the undersigned thereunto duly authorized.
Public Service Electric and Gas Company
Employee Savings Plan
---------------------------------------
(Name of Plan)
By JAMES T. FORAN
---------------------------------------
JAMES T. FORAN
Member of the Employee
Benefits Committee
Date: June 30, 1995
EXHIBIT INDEX
Exhibit Number
- --------------------------------
1 Public Service Electric and Gas
Company Employee Savings Plan, as
amended through April 10, 1995.
2 Independent Auditors' Consent.