- ------------------------------------------------------------------------
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, 1995 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 NEW YORK LIFE INSURANCE COMPANY
TWENTIETH CENTURY INVESTORS, INC. 501 MADISON AVENUE
4500 MAIN STREET NEW YORK, NEW YORK 10010
P.O. BOX 419200
KANSAS CITY, MISSOURI 64141-6200
AIG LIFE INSURANCE COMPANY
Balanced Fund B ONE ALICO PLAZA
PHOENIX SERIES FUND P.O. BOX 667
101 MUNSON STREET WILMINGTON, DELAWARE 19899
GREENFIELD, MASSACHUSETTS 01301
Fixed Income Fund C: Enterprise Common Stock Fund D
THE PRUDENTIAL LIFE INSURANCE and ESOP Fund
COMPANY 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 Stock Index Equities Fund E
ONE MADISON AVENUE BANKERS TRUST COMPANY
NEW YORK, NEW YORK 10010-3690 280 PARK AVENUE
NEW YORK, NEW YORK 10017
PRINCIPAL MUTUAL LIFE INSURANCE Utilities Equities Fund F
COMPANY FIDELITY PORTFOLIOS
THE PRINCIPAL FINANCIAL GROUP 82 DEVONSHIRE STREET
DES MOINES, IOWA 50392-0001 BOSTON, MASSACHUSETTS 02109
JOHN HANCOCK MUTUAL LIFE COMPANY Government Securities Fund G
JOHN HANCOCK PLACE VOYAGEUR FUND MANAGERS INC.
P.O. BOX 111 90 SOUTH SEVENTH STREET
BOSTON, MASSACHUSETTS 02117 SUITE 4400
MINNEAPOLIS, MINNESOTA 55402
ALLSTATE LIFE INSURANCE COMPANY International Stock Fund H
ALLSTATE PLAZA WEST T. ROWE PRICE INC.
3100 SANDERS ROAD 100 EAST PRATT STREET
NORTHBROOK, ILLINOIS 60062 BALTIMORE, MARYLAND 21202
PROVIDENT NATIONAL ASSURANCE
COMPANY
FOUNTAIN SQUARE
CHATTANOOGA, TENNESSEE 37402
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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, 1995 AND 1994............................... 5-10
STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
FOR THE YEARS ENDED DECEMBER 31, 1995 and 1994................. 11-16
NOTES TO FINANCIAL STATEMENTS.................................... 17-27
SCHEDULE OF ASSETS HELD FOR INVESTMENT - Item 27a................ 28
SCHEDULES OF REPORTABLE TRANSACTIONS - Item 27d.................. 29
SIGNATURES....................................................... 30
EXHIBIT INDEX.................................................... 31
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, 1995 and 1994, 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 audits 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, 1995 and 1994, 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, 1995 and (2) transactions in excess of five
percent of the current value of plan assets for the year ended December 31,
1995 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 1995 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 26, 1996
PAGE 1 OF 3
PUBLIC SERVICE ELECTRIC AND GAS COMPANY
EMPLOYEE SAVINGS PLAN
Statement of Net Assets Available for Benefits
December 31, 1995
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....... $ 40,166,821 $ -- $ -- $ -- $ 29,530,922
Equities Growth Fund.......... 10,338,793 10,338,793 -- -- --
Balanced Fund................. 4,417,994 -- 4,417,994 -- --
Insurance Contracts (GICs).... 86,241,687 -- -- 86,241,687 --
Stock Index Equities Fund..... 21,714,701 -- -- -- --
Utilities Equities Fund....... 5,059,521 -- -- -- --
Government Securities Fund.... 1,808,476 -- -- -- --
International Stock Fund...... 3,505,134
------------ ------------ ------------ ------------ ------------
Total Investments........ 173,253,127 10,338,793 4,417,994 86,241,687 29,530,922
Participant Loans Receivable.. 9,025,054 -- -- -- --
Receivables - Interest
and Dividends............... 1,201,963 6,040 1 463,492 524,388
Cash and Temporary Cash
Investments................. 652,059 -- -- 318,902 297,917
------------ ------------ ------------ ------------ ------------
Total Assets............. $184,132,203 $ 10,344,833 $ 4,417,995 $ 87,024,081 $ 30,353,227
------------ ------------ ------------ ------------ ------------
LIABILITIES
- -----------
Due to Active Participants.... $ 939,314 $ 36,475 $ (6,786) $ 543,716 $ 207,851
Purchases of Securities....... 510,936 -- -- -- 510,936
Accounts Payable.............. (768,303) 6,056 5,784 (562,519) (211,070)
Forfeitures................... 6,856
------------ ------------ ------------ ------------ ------------
Total Liabilities........ 688,803 42,531 (1,002) (18,803) 507,717
Net Assets Available for
Benefits.................... 183,443,400 10,302,302 4,418,997 87,042,884 29,845,510
============ ============ ============ ============ ============
<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, 1995
Supplemental Information by Fund (Continued)
------------------------------------------------------------------------
Stock Index Utilities Government
Equities Equities Securities International
Fund E Fund F Fund G Fund H ESOP Fund
------------ ------------ ------------ ------------ ------------
ASSETS
- ------
Investments
Enterprise Common Stock....... $ -- $ -- $ -- $ -- $ 10,635,899
Equities Growth Fund.......... -- -- -- -- --
Balanced Fund................. -- -- -- -- --
Insurance Contracts (GICs).... -- -- -- -- --
Stock Index Equities Fund..... 21,714,701 -- -- -- --
Utilities Equities Fund....... -- 5,059,521 -- -- --
Government Securities Fund.... -- -- 1,808,476 -- --
International Stock Fund...... -- -- -- 3,505,134 --
------------ ------------ ------------ ------------ ------------
Total Investments........ 21,714,701 5,059,521 1,808,476 3,505,134 10,635,899
Participant Loans Receivable.. -- -- -- -- --
Receivables - Interest
and Dividends............... 219,503 2,881 10,758 (80) (25,020)
Cash and Temporary Cash
Investments................. -- -- -- -- 129
------------ ------------ ------------ ------------ ------------
Total Assets............. $ 21,934,204 $ 5,062,402 $ 1,819,234 $ 3,505,054 $ 10,611,008
------------ ------------ ------------ ------------ ------------
LIABILITIES
- -----------
Due to Active Participants.... $ 65,958 $ (7,382) $ (1,754) $ (7) $ 101,243
Purchases of Securities....... -- -- -- -- --
Accounts Payable.............. 147,026 5,191 9,102 (70) (159,072)
Forfeitures................... -- -- -- -- --
------------ ------------ ------------ ------------ ------------
Total Liabilities........ 212,984 (2,191) 7,348 (77) (57,829)
Net Assets Available for
Benefits.................... 21,721,220 5,064,593 1,811,886 3,505,131 10,668,837
============ ============ ============ ============ ============
<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, 1995
Supplemental Information by Fund (Concluded)
----------------------------------------------------------------
Holding Trust
Account Loan Fund
------------ ------------
ASSETS
- ------
Investments
Enterprise Common Stock....... $ -- $ --
Equities Growth Fund.......... -- --
Balanced Fund................. -- --
Insurance Contracts(GICs)..... -- --
Stock Index Equities Fund..... -- --
Utilities Equities Fund....... -- --
Government Securities Fund.... -- --
International Stock Fund......
------------ ------------
Total Investments........ -- --
Participant Loans Receivable.. -- 9,025,054
Receivables - Interest
and Dividends............... -- --
Cash and Temporary Cash
Investments................. 35,111 --
------------ ------------
Total Assets............. $ 35,111 $ 9,025,054
------------ ------------
LIABILITIES
- -----------
Due to Active Participants.... $ -- $ --
Purchases of Securities....... -- --
Accounts Payable.............. 17,769 (26,500)
Forfeitures................... 6,856
------------ ------------
Total Liabilities........ 24,625 (26,500)
Net Assets Available for
Benefits.................... 10,486 9,051,554
============ ============
<FN>
See Notes to Financial Statements.
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
============ ============ ============ ============ ============
<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 9,919,904
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
=========== =========== =========== =========== ==========-
<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
=========== ===========
<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, 1995
Supplemental Information by Fund
---------------------------------------------------------
Equities Fixed Enterprise
Growth Balanced Income Common Stock
Total Fund A Fund B Fund C Fund D
------------ ------------ ------------ ------------ ------------
ADDITIONS
- ---------
Participant Deposits............ $ 21,842,876 $ 1,835,808 $ 754,556 $ 11,989,600 $ 2,620,828
Cash Receipts................... 46,461,767 -- -- -- --
Addition to Trust Loan Fund..... 5,705,903 -- -- -- --
Employer Contributions.......... 6,797,565 550,096 241,944 3,777,018 849,664
Interfund Transfers - net....... -- 2,701,500 839,296 (3,720,910) (2,021,119)
Participant Loan Repayments..... -- 226,246 85,592 1,694,618 428,983
Total Deposits and ------------ ------------ ------------ ------------ ------------
Contributions.............. 80,808,111 5,313,650 1,921,388 13,740,326 1,878,356
------------ ------------ ------------ ------------ ------------
Income:
Interest........................ 5,286,936 -- -- 5,271,061 15,351
Dividends....................... 5,398,669 1,414,599 304,086 -- 2,004,014
Loan Interest Income............ -- 37,488 14,506 271,639 66,069
------------ ------------ ------------ ------------ ------------
Total Income............... 10,685,605 1,452,087 318,592 5,542,700 2,085,434
------------ ------------ ------------ ------------ ------------
Transfer from Thrift Plan....... 469,847 4,661 (41,453) 269,130 243,817
------------ ------------ ------------ ------------ ------------
Appreciation (Depreciation)
of Investment................. 10,733,243 (503,624) 324,213 -- 3,833,515
------------ ------------ ------------ ------------ ------------
Total Additions............ 102,696,806 6,266,774 2,522,740 19,552,156 8,041,122
------------ ------------ ------------ ------------ ------------
DEDUCTIONS
- ----------
Cash Payments................... 46,459,272 -- -- -- --
Withdrawals..................... 7,421,656 318,174 142,031 4,503,151 1,288,475
Dividends paid.................. 771,047 -- -- -- --
Participant Loans............... 5,705,903 407,916 142,527 3,031,854 887,112
Forfeitures..................... 6,856 496 342 4,810 762
------------ ------------ ------------ ------------ ------------
Total Deductions........... 60,364,734 726,586 284,900 7,539,815 2,176,349
------------ ------------ ------------ ------------ ------------
INCREASE (DECREASE) IN NET
ASSETS AVAILABLE FOR BENEFITS. 42,332,072 5,540,188 2,237,840 12,012,341 5,864,773
Net Assets Available for
Benefits Beginning of period.. 141,111,328 4,762,114 2,181,157 75,030,543 23,980,737
------------ ------------ ------------ ------------ ------------
Net Assets Available
for Benefits End of Period.... $183,443,400 $ 10,302,302 $ 4,418,997 $ 87,042,884 $ 29,845,510
============ ============ ============ ============ ============
<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, 1995
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............ $ 2,697,700 $ 781,957 $ 358,931 $ 803,496 $ --
Cash Receipts................... -- -- -- -- --
Addition to Trust Loan Fund..... -- -- -- -- --
Employer Contributions.......... 798,405 239,897 112,777 227,764 --
Interfund Transfers - net....... 2,809,226 569,346 (137,360) (834,236) (205,743)
Participant Loan Repayments..... 453,441 100,954 42,327 100,029 --
Total Deposits and ------------ ------------ ------------ ------------ ------------
Contributions.............. 6,758,772 1,692,154 376,675 297,053 (205,743)
------------ ------------ ------------ ------------ ------------
Income:
Interest........................ -- -- -- -- 524
Dividends....................... 496,577 213,284 91,639 103,423 771,047
Loan Interest Income............ 74,403 15,894 6,348 15,765 --
------------ ------------ ------------ ------------ ------------
Total Income............... 570,980 229,178 97,987 119,188 771,571
------------ ------------ ------------ ------------ ------------
Transfer from Thrift Plan....... (27,346) (7,698) (16,339) (16,048) (173)
------------ ------------ ------------ ------------ ------------
Appreciation (Depreciation)
of Investment................. 4,474,967 714,133 179,458 219,939 1,470,331
------------ ------------ ------------ ------------ ------------
Total Additions............ 11,777,373 2,627,767 637,781 620,132 2,035,986
------------ ------------ ------------ ------------ ------------
DEDUCTIONS
- ----------
Cash Payments................... -- -- -- -- --
Withdrawals..................... 683,921 153,603 34,550 139,113 526,967
Dividends paid.................. -- -- -- -- 771,047
Participant Loans............... 848,967 160,008 71,078 156,441 --
Forfeitures..................... 27 -- 311 108 --
------------ ------------ ------------ ------------ ------------
Total Deductions........... 1,532,915 313,611 105,939 295,662 1,298,014
------------ ------------ ------------ ------------ ------------
INCREASE (DECREASE) IN NET
ASSETS AVAILABLE FOR BENEFITS. 10,244,458 2,314,156 531,842 324,470 737,972
Net Assets Available for
Benefits Beginning of period.. 11,476,762 2,750,437 1,280,044 3,180,661 9,930,865
------------ ------------ ------------ ------------ ------------
Net Assets Available
for Benefits End of Period.... $ 21,721,220 $ 5,064,593 $ 1,811,886 $ 3,505,131 $ 10,668,837
============ ============ ============ ============ ============
<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, 1995
Supplemental Information by Fund (Concluded)
-----------------------------------------------------------------------
Holding Trust Loan
Account Fund
------------ ------------
- ---------
Participant Deposits............. $ -- $ --
Cash Receipts.................... 46,461,767 --
Addition to Trust Loan Fund...... -- 5,705,903
Employer Contributions........... -- --
Interfund Transfers - net........ -- --
Participant Loan Repayments...... -- (3,132,190)
Total Deposits and ------------ ------------
Contributions............... 46,461,767 2,573,713
------------ ------------
Interest......................... -- --
Dividends........................ -- --
Loan Interest Income.............. -- (502,112)
------------ ------------
Total Income................ -- (502,112)
------------ ------------
Transfer from Thrift Plan........ -- 61,296
------------ ------------
Appreciation (Depreciation)
of Investment.................. 643 19,668
------------ ------------
Total Additions............. 46,462,410 2,152,565
------------ ------------
DEDUCTIONS
- ----------
Cash Payments.................... 46,459,272 --
Withdrawals...................... -- (368,329)
Dividends paid................... -- --
Participant Loans................ -- --
Forfeitures....................... -- --
------------ ------------
Total Deductions............ 46,459,272 (368,329)
------------ ------------
INCREASE (DECREASE) IN NET
ASSETS AVAILABLE FOR BENEFITS.. 3,138 2,520,894
Net Assets Available for
Benefits Beginning of period... 7,348 6,530,660
------------ ------------
Net Assets Available
for Benefits End of Period..... $ 10,486 $ 9,051,554
============ ============
<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.
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 March 26, 1996 , effective May 1, 1996, except for changes listed
below, which are effective as of April 2, 1996. The amendment permits,
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.
Effective May 1, 1996, an employee may make a contribution from date of
hire. Matching Company Contributions will start when he becomes an Eligible
Employee. 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.
The following changes are effective April 2, 1996:
1. allow an employee who goes from represented to non-represented status
to automatically transfer from the Savings Plan to the Thrift Plan and
keep all the same investment choices without a requirement for
paperwork or other action on his part;
2. allow investment elections in minimum increments of 1%, rather than 5%;
3. allow rollover contribution investment elections to be made in specific
dollar amounts, rather than in percentages, as now required;
4. delete the requirement that permitted non-hardship withdrawals be made
only once every six months; and
5. delete the minimum dollar requirement for post termination periodic
distributions and allow repayment periods for loans to be made in any
monthly term from 12 to 60 months.
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 50%
thereof, 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 20% 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., an
affiliate of PSE&G, 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).
NOTES TO FINANCIAL STATEMENTS -(Continued)
In addition, Participants may elect to make supplemental deposits to their
Savings Account in increments of 1% of Compensation up to an additional 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).
Each Participant may also, 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 25% 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 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. Effective January 1, 1996, this has become a Master Trust
also covering the PSE&G Thrift and Tax Deferred Savings Plan, as well as
the PSE&G Pension Plan and Cash Balance Pension Plan.
Loan Provisions
The Trustee may, subject to the approval of PSE&G's Director Performance
and Rewards, 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 to 60
months as selected by the Participant. However, a Participant may prepay
any such loan in full or in part in a lump sum 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
NOTES TO FINANCIAL STATEMENTS -(Continued)
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 1995, the rate of interest on loans
granted to Participants, by quarter and starting with the first quarter,
was 8-1/2%, 9%, 9%, 8-3/4%. (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 in Fixed Income Fund C are invested
in either traditional Guaranteed Investment Contracts (Traditional GICs)
issued by insurance companies, or Benefit Responsive Agreements (Synthetic
GICs) which are similar to traditional GICs in terms of their ability to
preserve principal and provide a stable rate of return. Synthetic GICs are
different in that they are backed or secured by a separate portfolio of
high-quality fixed income securities that are directly owned by the Fund.
The portfolio is wrapped by a "book value wrapper", usually another
financial institution which provides a crediting rate and which guarantees
that benefit repayments will be made at book value. Both earn interest at
the composite rate of all GICs in which the assets of such fund are then
invested. Such rate varies as such Traditional and Synthetic GICs mature
or are entered into, and as Deposits and Employer Contributions are made
to and withdrawn from such contracts. Under the contracts in effect during
1995, the composite rate of interest earned by such assets so invested was
not less than 6.79%.
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.
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 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.
NOTES TO FINANCIAL STATEMENTS -(Continued)
In September 1994, the American Institute of Certified Public Accountants
issued Statement of Position 94-4 (SOP 94-4), "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 was adopted effective for plan years beginning
after December 15, 1994.
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 end 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.
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.
NOTES TO FINANCIAL STATEMENTS -(Continued)
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
periodic retirement benefit under PSE&G Pension Plan, 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
As of December 31, 1995, and December 31, 1994, the net assets available
for benefits included benefits due to Participants who have elected to
withdraw from the Plan in the amounts of $70,644 and $195,358,
respectively. Such amounts are not reflected as a liability in the
financial statements of the Plan.
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 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 and four and one-half year contract
which will expire December 31, 1997 and
December 31, 1999, respectively, with
Metropolitan Life Insurance Company, effective
interest rates of 5.72% and 8.12%, respectively;
(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%;
(vi) A five-year contract which will expire June 30,
1999, with New York Life Insurance Company,
effective interest rate of 7.07%.
(vii) A five-year contract which will expire
December 31, 1999, with Prudential Life Insurance
Company, effective interest rate of 8.01%.
(viii) A five-year contract which will expire
June 30, 2000, with AIG Life Insurance Company,
effective interest rate of 6.14%.
NOTES TO FINANCIAL STATEMENTS -(Continued)
(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 Bankers Trust 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.
(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 Voyageur U.S. Government Securities
Fund (the "Voyageur U.S. Government Securities Fund"), an
open-end diversified management investment company or
mutual fund. The prospectus of the Voyageur U.S.
Government Securities Fund indicates that such a fund
invests primarily in U.S. Treasury bills, notes, bonds and
other obligations issued or unconditionally guaranteed by
the U.S. Government, or otherwise backed by the full faith
and credit of the U.S. Government, and repurchase
agreements fully secured by such obligations.
(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 1995.
c. PARTICIPANTS
Participants
As of December 31,
-----------------
1995 1994
---- ----
Total Plan Participants........................ 7,585 8,138
Participants by Fund
--------------------
Equities Growth Fund A ............ ........... 1,700 1,165
Balanced Fund B ............................... 921 690
Fixed Income Fund C ........................... 4,740 4,801
Enterprise Common Stock Fund D ................ 2,659 2,709
Stock Index Equities Fund E ................... 2,243 1,626
Utilities Equities Fund F ..................... 1,014 876
Government Securities Fund G .................. 493 431
International Stock Fund H (1)................. 688 706
ESOP Fund ..................................... 1,328 1,426
------------------------------------------------
(1) New investment option in 1994
4. UNIT VALUE INFORMATION - SAVINGS ACCOUNT INVESTMENT FUNDS
Unit values of the Investment Funds were determined at the end of each
business day (Valuation Day) 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 at the end
of each business day by dividing Deposits made by, or on behalf of, such
Participant for such 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 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 unit information of investments by Investment Fund 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.......... 1995 19.390000 533,202.321
1994 18.740000 254,061.739
Balanced Fund B................. 1995 16.800000 262,975.833
1994 14.830000 147,009.844
Fixed Income Fund C............. 1995 11.335599 7,608,039.681
1994 10.625695 6,973,763.974
Enterprise Common Stock Fund D.. 1995 11.755127 2,512,173.794
1994 9.472822 2,476,796.460
Stock Index Equities Fund E..... 1995 13.970000 1,554,380.888
1994 10.440000 1,098,682.137
Utilities Equities Fund F....... 1995 16.160000 313,089.171
1994 13.060000 210,211.776
Government Securities Fund G.... 1995 10.783011 167,715.307
1994 9.012366 141,839.889
International Stock Fund H..... 1995 12.230000 286,601.308
1994 11.320000 280,977.378
- -------------------------------
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 1995 $30.625 347,295
1994 $26.500 374,336
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 on December 29, 1995.
Participants are not taxed either on Company Contributions or on the earnings
credited to their Savings Account, until distribution of such Savings Account.
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
A portion of the assets of Fixed Income Fund C will be invested after December
31, 1995, in an open-ended contract Synthetic GIC with J.P. Morgan, effective
interest rate of 6.38%.
PUBLIC SERVICE ELECTRIC AND GAS COMPANY
EMPLOYEE SAVINGS PLAN
SCHEDULE OF ASSETS HELD FOR INVESTMENT - ITEM 27a
DECEMBER 31, 1995
Identity of Issue Units/Shares Historical Cost Market Value
- ----------------- ------------ --------------- ------------
Twentieth Century Growth Fund A......... 533,202 $ 11,719,586 $ 10,338,793
---------- ------------ ------------
Phoenix Balanced Fund B......................262,976 $ 4,253,049 $ 4,417,994
---------- ------------ ------------
Fixed Income Fund C (Insurance
Annuity Contracts-GICs):
Provident National Assurance Company
-- 6.80%, four and one-half year
contract expiring 6/30/97.......... 10,864,544 $ 10,864,544 $ 10,864,544
-- 6.62%, four and one half-year
contract expiring 6/30/96.......... 6,027,283 $ 6,027,283 $ 6,027,283
Metropolitan Life Insurance Company
-- 5.72%, four-year contract
expiring 12/31/97.................. 5,562,883 $ 5,562,883 $ 5,562,883
Prudential Life Insurance Company
-- 8.01%, four and one half year contract
expiring 12/31/99.................. 12,323,984 $ 12,323,984 $ 12,323,984
Principal Mutual Life Insurance Company
-- 6.80%, five-year contract
expiring 1/1/97.................... 8,750,798 $ 8,750,798 $ 8,750,798
John Hancock Mutual Life
Insurance Company
-- 6.10%, four-year contract
expiring 1/1/96.................... 10,735,001 $ 10,735,001 $ 10,735,001
Allstate Life Insurance Company
-- 5.65%, five-year contract
expiring 1/4/99.................... 13,301,508 $ 13,301,508 $ 13,301,508
New York Life Insurance Company
-- 7.07%, five-year contract
expiring 6/30/99................... 7,682,534 $ 7,682,534 $ 7,682,534
Met Life Insurance Company
-- 8.12% four and one half year contract
Expiring 12/31/99.................. 5,367,976 $ 5,367,976 $ 5,367,976
AIG Life Insurance Company
-- 6.14% five year contract
Expiring 6/30/2000................. 5,625,176 $ 5,625,176 $ 5,625,176
---------- ------------ ------------
86,241,687 $ 86,241,687 $ 86,241,687
---------- ------------ ------------
Equities Fund D (Common Stock
of Public Service Enterprise
Group, Inc.).......................... 964,275 $ 27,070,055 $ 29,530,922
---------- ------------ ------------
Stock Index Equities Fund E............. 1,554,381 $ 17,784,742 $ 21,714,701
---------- ------------ ------------
Fidelity Utilities Fund F............... 313,089 $ 4,682,645 $ 5,059,521
---------- ------------ ------------
Voyageur U.S. Government Securities
Fund G............................... 168,544 $ 1,658,617 $ 1,808,476
---------- ------------ ------------
T. Rowe Price International Stock
Fund H............................... 286,601 $ 3,492,391 $ 3,505,134
---------- ------------ ------------
Employee Stock Ownership Plan
(Common Stock of Public Service
Enterprise Group, Inc.)............... 347,295 $ 3,693,124 $ 10,635,899
---------- ------------ ------------
Total Investments.................. $160,595.896 $173,253,127
Loans to Participants (interest rates
ranging from 8.5% to 9%, maturity
date of one to five years).......... $ 9,025,054 $ 9,025,054
------------ ------------
Total Assets Held for Investment... $169,620,950 $182,278,181
============ ============
<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, 1995* - Item 27d
Value Value
of of Net
Security Purchases Sales Gain (Loss)
- -------- --------- ------ -----------
Investment Contracts:
AIG Life Insurance Company $ 8,676,995 $ 3,051,820 $ --
Prudential Life Insurance Company $15,779,984 $ 3,456,000 $ --
Partner with Prudential Life Insurance Company $ 81,170 $10,166,036 $ --
Twentieth Century Investments Incorporated $ 8,060,098 $ 2,016,435 $(13,573)
BT Pyramid Directed Account Cash Fund $68,171,968 $68,588,341 $ --
BY Pyramid Equity Index Fund $ 7,847,154 $ 2,077,752 $241,000
Public Service Enterprise Group Incorporated $ 4,324,147 $ 2,795,774 $510,353
PSE&G Participant Loans $ 5,693,640 $ 3,276,674 $ --
SCHEDULE OF REPORTABLE INDIVIDUAL TRANSACTIONS FOR THE YEAR
ENDED December 31, 1995* Item 27d
Net
Purchases Sales Gain (Loss)
--------- ------ -----------
Investment Contracts:
Metropolitan Life Insurance Company $ 5,000,000
New York Life Insurance Company $ 3,316,052 $ --
AIG Life Insurance Company $ 2,000,000
Partner with Prudential Life Insurance Company $10,166,036 $ --
Prudential Insurance Company $ 7,000,000
BT Pyramid Directed Account Cash Fund $21,730,696 $21,735,078 $ --
* 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 M. PETER MELLETT
---------------------------------------
M. PETER MELLETT
Chairman of the Employee
Benefits Committee
Date: June 27, 1996
EXHIBIT INDEX
Exhibit Number
- --------------------------------
1 Public Service Electric and Gas
Company Employee Savings Plan, as
amended as of March 26, 1996, and
effective May 1, 1996.
2 Independent Auditors' Consent.