PSEG Investor News NYSE:PEG
For further information, contact:
> Brian Smith, Director, Investor Relations Phone: 973-430-6564
> Greg McLaughlin, Sr. Investor Relations Analyst Phone: 973-430-6568
> Meg Butler, Sr. Investor Relations Analyst Phone: 973-430-6565
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July 17, 2002
PSEG ANNOUNCES SECOND-QUARTER 2002 RESULTS:
56 CENTS PER SHARE OF COMMON STOCK EXCLUDING
CHARGES OF $1.84 PER SHARE RELATED TO CERTAIN INVESTMENTS
IN PSEG GLOBAL AND PSEG ENERGY TECHNOLOGIES
Charges Reflect Writedown of All Investments in Argentina
And Decisions To Exit PSEG Energy Technologies
And PSEG Global's Tanir Bavi Generating Facility in India,
Resulting in a Loss of $1.28 Per Share for the Second Quarter
PSEG Also Records Charges of 58 Cents Per Share Retroactively to First Quarter
Stemming from Implementation of Goodwill Accounting Standard
Company Lowers 2002 EPS Guidance by 5% to a Range
Of $3.70 to $3.90 Per Share Excluding Total Charges of $2.57 Per Share
Public Service Enterprise Group (PSEG) announced today (July 17, 2002) that
results for the second quarter of 2002 were $116 million or 56 cents per share
of common stock, based on 207 million average shares outstanding, excluding
after-tax charges of $380 million or $1.84 per share. These charges are related
to investments in PSEG Global and the decisions to discontinue operations of
PSEG Energy Technologies and PSEG Global's Tanir Bavi generating facility in
India. Including these charges, PSEG reported a loss of $264 million or $1.28
per share for the second quarter.
PSEG also announced today that it has implemented the new goodwill
accounting standard, SFAS 142, Goodwill and Other Intangible Assets. This has
resulted in an impairment of the recorded amount of goodwill at PSEG Global's
investments in Argentina, Brazil and India as well as investments in PSEG Energy
Technologies. As required by the standard, the company recorded after-tax
charges of $120 million or 58 cents per share retroactively to the first quarter
of 2002.
For the year through June 30, the charges totaled $531 million or $2.57 per
share, including $31 million or 15 cents per share previously taken in the first
quarter. Excluding the charges, PSEG's results for the first half of the year
were $327 million or $1.58 per share. Including the charges, PSEG reported a
loss for the first six months of $204 million or 99 cents per share.
See Attachments 1 to 7 for details of quarterly and six-month results for
PSEG and its principal subsidiaries - Public Service Electric and Gas Company
(PSE&G), PSEG Power and PSEG Energy Holdings.
"These charges of $2.57 are largely consistent with estimates totaling
$2.44 per share that were provided in our first-quarter 10-Q," said E. James
Ferland, chairman and chief executive officer. "These dealt with the effects on
our investments in Argentina due to the economic, political and social crisis
there and on the implementation of the goodwill accounting standard. The small
difference reflects recent decisions to discontinue operations of PSEG Energy
Technologies, our energy services business, based on a review of its strategic
fit within PSEG, and of PSEG Global's Tanir Bavi generating facility in India
due to local regulatory issues."
CONTINUING OPERATIONS: RESULTS AND OUTLOOK
Excluding the charges, PSEG's underlying earnings per share of 56 cents in
the second quarter were lower by 16 cents compared to results for the same
period of last year. The results were negatively affected by unexpected losses
in PSEG Resources' KKR leveraged buyout portfolio, lower energy trading margins
realized by PSEG Power due to a softer energy market, higher O&M and other
expenses at PSEG Power and lower margins at PSE&G. These decreases were offset
in part by higher basic generation service (BGS) margins at PSEG Power and a
gain by PSEG Global related to its 2001 withdrawal from an interest in the Eagle
Point Cogeneration Partnership.
"The weaker-than-expected second quarter results, in conjunction with the
15-cents-per-share negative effect of warm weather on our utility's gas sales in
the first quarter, has put pressure on PSEG to achieve its initial full-year,
earnings-per-share objectives," Ferland said. "Even though we expect a
particularly solid performance by PSEG Power in the second half of the year, we
think it is prudent to revise guidance downward by a modest 5% to a range of
$3.70 to $3.90, excluding the charges we have taken this year."
"While we are not happy about the 5% revision, it is reflective of the
current turmoil in both the financial and energy markets and an overall very
tough business environment," Ferland said. "The fact is that, even with a
slightly lower target, we expect to achieve earnings above last year's record of
$3.70 per share."
He explained that PSEG Power will be the primary earnings driver for the
balance of the year due to its successful participation as a wholesale supplier
to bidders of basic generation service (BGS) to New Jersey's electric utilities,
including PSE&G. Earlier this year, PSEG Power secured contracts on more than
75% of its capacity with suppliers that won the right in the state's first BGS
auction to serve utilities for a year beginning August 1.
"The prices PSEG Power will charge under these contracts are significantly
higher than it now charges PSE&G," Ferland said, noting that specific contract
terms are appropriately confidential. "PSEG Power earned $394 million in 2001
and we are looking for it to improve on that substantially this year."
Ferland said PSEG Power's trading business has been a solid performer, with
a strategy of trading around its physical assets. "Since its inception, the
majority of trading gains has been realized, making this business not only a
strong contributor to earnings but also a solid provider of cash flow," he said.
"Its open positions are short and medium term in nature and are valued using
multiple external sources and the transparent pricing available in the liquid
PJM ISO marketplace."
In support of its revised guidance for 2002, Ferland said earnings targets
for PSEG's three major businesses - excluding the charges recorded this year --
are as follows: PSEG Power -- $460 to $500 million, PSE&G -- $175 to $185
million, and PSEG Energy Holdings, the parent of PSEG Global and PSEG Resources
- -- $145 to $155 million.
Ferland said PSEG continues to target 7% earnings-per-share growth over the
long term. Looking to 2003, he said the company is providing initial earnings
per share guidance in the range of $4.00 to $4.20. He said the key drivers of
next year's growth will be:
o PSEG Power's continuing benefits as a wholesale BGS provider since New
Jersey will conduct a second auction for yet-to-be determined periods
commencing August 1, 2003.
o A successful outcome to PSE&G's recently filed electric rate case.
PSE&G is seeking an annual increase of $250 million. New rates are
expected to be implemented on August 1, 2003.
o Modest improvements in the performance of PSEG Global through various
initiatives to enhance the return on capital as well as PSEG Resources
through new investments and less exposure to the KKR portfolio.
"Going forward, we have a solid business plan built around PSEG Power with
its low-cost generation, strategic locational advantages in the Northeast, a
solid fuel mix, and excellent trading capability. This combination allows us to
operate more successfully when energy markets elsewhere are soft," Ferland said.
He added: "With the completion of the electric rate case next year, PSE&G
will have emerged successfully from a four-year transition period stemming from
the restructuring of the electric industry in New Jersey. With normal weather
helping energy sales, it is expected to be a steady earnings contributor in the
years ahead. Finally, with its risks in Argentina and India removed, significant
cost-cutting initiatives underway and limited spending planned for at least the
next 18 to 24 months, PSEG Global...as well as PSEG Resources...are also
expected to be steady contributors to earnings and cash flow."
================================================================================
This release includes forward-looking statements. Although Public
Service Enterprise Group Incorporated and its subsidiaries believe
that their expectations are based on reasonable assumptions, they
can give no assurance that these expectations will be achieved. For
further information, please refer to their reports filed with the
Securities and Exchange Commission. These documents address company
business, industry issues and other factors that could cause actual
results to differ materially from those indicated in this release.
================================================================================
Attachment 1
PSEG Results
June 30, 2002
(Unaudited)
- ---------------------------------------------------------------------------------------------------------
Second Quarter YTD
2002 2001 2002 2001
- ---------------------------------------------------------------------------------------------------------
Earnings ($Millions)
- --------------------
PSE&G $ 7 $ 31 $ 74 $ 140
PSEG Power 83 104 203 206
PSEG Energy Holdings
PSEG Global (309) 4 (321) 52
PSEG Resources (5) 14 9 17
PSEG Energy Technologies - (1) (1) (1)
PSEG Energy Holdings (1) 3 (3) 2
----------------------------------------------
Subtotal (315) 20 (316) 70
Loss on Early Extinguishment of Debt - - - (2)
Loss from Discontinued Operations,
including Loss on Disposal (37) (8) (37) (11)
Cumulative Effect of a Change in
Accounting Principle - - (120) 9
----------------------------------------------
Total PSEG Energy Holdings (352) 12 (473) 66
----------------------------------------------
PSEG (2) (4) (8) (8)
- ---------------------------------------------------------------------------------------------------------
PSEG Net Income (Loss) $(264) $ 143 $(204) $ 404
- ---------------------------------------------------------------------------------------------------------
Total Impairment and Other Charges, Including
Operating Loss at Argentina $(380) $ (8) $(531) $ (4)
- ---------------------------------------------------------------------------------------------------------
PSEG Income from Continuing Operations,
Excluding Loss from Operations of Impaired
Assets and Write-down of Argentine Investments $ 116 $ 151 $ 327 $ 408
- ---------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------
Average Shares Outstanding (millions) 207 209 207 209
- ---------------------------------------------------------------------------------------------------------
EPS
- ---
PSE&G $ 0.03 $ 0.15 $ 0.36 $ 0.67
PSEG Power 0.40 0.50 0.98 0.99
PSEG Energy Holdings
PSEG Global (1.49) 0.02 (1.55) 0.25
PSEG Resources (0.02) 0.07 0.04 0.08
PSEG Energy Technologies - - (0.01) (0.01)
PSEG Energy Holdings (0.01) 0.01 (0.01) 0.01
----------------------------------------------
Subtotal (1.52) 0.10 (1.53) 0.33
Loss on Early Extinguishment of Debt - - - (0.01)
Loss from Discontinued Operations,
including Loss on Disposal (0.18) (0.04) (0.18) (0.05)
Cumulative Effect of a Change in
Accounting Principle - - (0.58) 0.04
----------------------------------------------
Total PSEG Energy Holdings (1.70) 0.06 (2.29) 0.31
----------------------------------------------
PSEG (0.01) (0.03) (0.04) (0.03)
- ---------------------------------------------------------------------------------------------------------
PSEG Net Income (Loss) $ (1.28) $ 0.68 $ (0.99) $1.94
- ---------------------------------------------------------------------------------------------------------
Total Impairment and Other Charges and Other Charges,
Including Operating Loss at Aregntina $ (1.84) $(0.04) $ (2.57) $(0.02)
- ---------------------------------------------------------------------------------------------------------
PSEG Income from Continuing Operations,
Excluding Loss from Operations of Impaired
Assets and Write-down of Argentine Investments $ 0.56 $ 0.72 $ 1.58 $1.96
- ---------------------------------------------------------------------------------------------------------
Attachment 2
PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED
CONDENSED STATEMENTS OF OPERATIONS (Unaudited)
(Millions of Dollars, except for Per Share Data)
- ------------------------------------------------------------------------------------------------------------------------------------
Three Months Ended June 30, 2002
- ------------------------------------------------------------------------------------------------------------------------------------
PSEG Energy
PSEG PSE&G PSEG Power Holdings Other*
--------- ---------- ----------- ----------- --------
Operating Revenues $ 1,782 $ 1,230 $1,010 $ 160 $ (618)
Operating Expenses
Energy & Trading Costs 787 758 619 28 (618)
Operation & Maintenance 451 233 196 32 (10)
Writedown of Argentine Investments 506 - - 506 -
Depreciation & Amortization 139 100 27 6 6
Taxes Other than Income Taxes 28 32 (4) 1 (1)
--------- ---------- ----------- ----------- --------
Total Operating Expenses 1,911 1,123 838 573 (623)
--------- ---------- ----------- ----------- --------
Operating Income (Loss) (129) 107 172 (413) 5
Other Income and Deductions (16) 5 - (21) -
Interest Expense and Preferred Securities Dividend Requirements (203) (106) (28) (58) (11)
Income Taxes 121 1 (61) 177 4
--------- ---------- ----------- ----------- --------
INCOME (LOSS) FROM CONTINUING OPERATIONS (227) 7 83 (315) (2)
Loss from Discontinued Operations, including Loss on Disposal, net of tax (37) - - (37) -
--------- ---------- ----------- ----------- --------
NET INCOME (LOSS) $ (264) $ 7 $ 83 $ (352) $ (2)
======================================================
Income (Loss) from Continuing Operations $ (227) $ 7 $ 83 $ (315) $ (2)
Loss from Operations of Impaired Assets, net of tax 9 - - 9 -
Writedown of Argentine Investments, net of tax 334 - - 334 -
Income from Continuing Operations, Excluding Loss from Operations of --------- ---------- ----------- ----------- --------
Impaired Assets and Writedown of Argentine Investments $ 116 $ 7 $ 83 $ 28 $ (2)
=======================================================
Weighted Average Common Shares Outstanding (000's): 206,927
=========
Earnings Per Share (Basic and Diluted):
Loss from Continuing Operations $ (1.10)
Loss from Discontinued Operations, including Loss on Disposal (0.18)
---------
Net Loss $ (1.28)
=========
Earnings Per Share (Basic and Diluted):
Loss from Continuing Operations $ (1.10)
Loss from Operations of Impaired Assets 0.04
Writedown of Argentine Investments 1.62
Income from Continuing Operations, Excluding Loss from Operations of ---------
Impaired Assets and Writedown of Argentine Investments $ 0.56
=========
Dividends Paid Per Share of Common Stock $ 0.54
=========
- ------------------------------------------------------------------------------------------------------------------------------------
Three Months Ended June 30, 2001
- ------------------------------------------------------------------------------------------------------------------------------------
PSEG Energy
PSEG PSE&G PSEG Power Holdings Other*
--------- ---------- ----------- --------------- --------
Operating Revenues $ 2,047 $ 1,311 $1,159 $ 88 $ (511)
Operating Expenses
Energy & Trading Costs 1,034 801 745 - (512)
Operation & Maintenance 441 242 182 19 (2)
Depreciation & Amortization 123 91 25 2 5
Taxes Other than Income Taxes 38 31 6 - 1
--------- ---------- ----------- --------------- --------
Total Operating Expenses 1,636 1,165 958 21 (508)
--------- ---------- ----------- --------------- --------
Operating Income (Loss) 411 146 201 67 (3)
Other Income and Deductions 2 2 (2) (1) 3
Interest Expense and Preferred Securities Dividend Requirements (177) (99) (25) (41) (12)
Income Taxes (85) (18) (70) (5) 8
--------- ---------- ----------- --------------- --------
INCOME FROM CONTINUING OPERATIONS 151 31 104 20 (4)
Loss from Discontinued Operations, net of tax (8) - - (8) -
--------- ---------- ----------- --------------- --------
NET INCOME (LOSS) $ 143 $ 31 $ 104 $ 12 $ (4)
========= ========== =========== =============== ========
Weighted Average Common Shares Outstanding (000's): 208,701
=========
Earnings Per Share (Basic and Diluted):
Income from Continuing Operations $ 0.72
Loss from Discontinued Operations (0.04)
---------
Net Income $ 0.68
=========
Dividends Paid Per Share of Common Stock $ 0.54
=========
* Primarily includes financing activities at the parent and intercompany
eliminations relating to basic generation service and basic gas supply
service.
Attachment 3
PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED
CONDENSED STATEMENTS OF OPERATIONS (Unaudited)
(Millions of Dollars, except for Per Share Data)
- -------------------------------------------------------------------------------------------------------------------------
Six Months Ended June 30, 2002
- -------------------------------------------------------------------------------------------------------------------------
PSEG Energy
PSEG PSE&G PSEG Power Holdings Other*
---------- -------- --------- ------------- ---------
Operating Revenues $ 4,070 $ 2,889 $1,968 $ 320 $(1,107)
Operating Expenses
Energy & Trading Costs 1,908 1,817 1,139 58 (1,106)
Operation & Maintenance 902 482 379 55 (14)
Writedown of Argentine Investments 506 - - 506 -
Depreciation & Amortization 271 198 50 13 10
Taxes Other than Income Taxes 75 75 - 1 (1)
---------- -------- --------- ------------- ---------
Total Operating Expenses 3,662 2,572 1,568 633 (1,111)
---------- -------- --------- ------------- ---------
Operating Income (Loss) 408 317 400 (313) 4
Other Income and Deductions (53) 9 - (62) -
Interest Expense and Preferred Securities Dividend Requirements (409) (211) (56) (118) (24)
Income Taxes 7 (41) (141) 177 12
---------- -------- --------- ------------- ---------
INCOME (LOSS) FROM CONTINUING OPERATIONS (47) 74 203 (316) (8)
Loss from Discontinued Operations, including Loss on Disposal,
net of tax (37) - - (37) -
---------- -------- --------- ------------- ---------
INCOME (LOSS) BEFORE CUMULATIVE EFFECT OF
A CHANGE IN ACCOUNTING PRINCIPLE (84) 74 203 (353) (8)
Cumulative Effect of a Change in Accounting Principle (120) - - (120) -
---------- -------- --------- ------------- ---------
NET INCOME (LOSS) $ (204) $ 74 $ 203 $ (473) $ (8)
========== ======== ========= ============= =========
Income (Loss) from Continuing Operations $ (47) $ 74 $ 203 $ (316) $ (8)
Loss from Operations of Impaired Assets, net of tax 40 - - 40 -
Writedown of Argentine Investments, net of tax 334 - - 334 -
Income from Continuing Operations, Excluding Loss from Operations
of Impaired Assets and Writedown of Argentine Investment ---------- -------- --------- ------------- ---------
$ 327 $ 74 $ 203 $ 58 $ (8)
========== ======== ========= ============= =========
Weighted Average Common Shares Outstanding (000's): 206,631
==========
Earnings Per Share (Basic and Diluted):
Loss from Continuing Operations $ (0.23)
Loss from Discontinued Operations, including Loss on Disposal (0.18)
----------
Loss Before Cumulative Effect of a Change in Accounting
Principle (0.41)
Cumulative Effect of A Change in Accounting Principle (0.58)
----------
Net Loss $ (0.99)
==========
Earnings Per Share (Basic and Diluted):
Loss from Continuing Operations $ (0.23)
Loss from Operations of Impaired Assets 0.19
Writedown of Argentine Investments 1.62
Income from Continuing Operations, Excluding Loss from
Operations of Impaired Assets and Writedown of
Argentine Investments $ 1.58
==========
Dividends Paid Per Share of Common Stock $ 1.08
==========
- -------------------------------------------------------------------------------------------------------------------------
Six Months Ended June 30, 2001
- -------------------------------------------------------------------------------------------------------------------------
PSEG Energy
PSEG PSE&G PSEG Power Holdings Other*
---------- -------- --------- ------------- ---------
Operating Revenues $ 4,751 $ 3,263 $2,295 $ 210 $(1,017)
Operating Expenses
Energy & Trading Costs 2,563 2,141 1,440 - (1,018)
Operation & Maintenance 878 492 352 37 (3)
Depreciation & Amortization 227 163 55 3 6
Taxes Other than Income Taxes 86 74 11 - 1
---------- -------- --------- ------------- ---------
Total Operating Expenses 3,754 2,870 1,858 40 (1,014)
---------- -------- --------- ------------- ---------
Operating Income (Loss) 997 393 437 170 (3)
Other Income and Deductions 15 13 (2) 1 3
Interest Expense and Preferred Securities Dividend Requirements (363) (171) (89) (83) (20)
Income Taxes (241) (95) (140) (18) 12
---------- -------- --------- ------------- ---------
INCOME FROM CONTINUING OPERATIONS 408 140 206 70 (8)
Loss from Discontinued Operations, net of tax (11) - - (11) -
---------- -------- --------- ------------- ---------
INCOME BEFORE EXTRAORDINARY ITEM AND CUMULATIVE 397 140 206 59 (8)
EFFECT OF A CHANGE IN ACCOUNTING PRINCIPLE
Extraordinary Item-Loss on Early Extinguishment of Debt (2) - - (2) -
Cumulative Effect of a Change in Accounting Principle 9 - - 9 -
---------- -------- --------- ------------- ---------
NET INCOME (LOSS) $ 404 $ 140 $ 206 $ 66 $ (8)
========== ======== ========= ============= =========
Weighted Average Common Shares Outstanding (000's): 208,512
==========
Earnings Per Share (Basic and Diluted):
Income from Continuing Operations $ 1.96
Loss from Discontinued Operations (0.05)
----------
Income Before Cumulative Effect of a Change in Accounting
Principle 1.91
Extraordinary Item-Loss on Early Extinguishment of Debt (0.01)
Cumulative Effect of A Change in Accounting Principle 0.04
----------
Net Income $ 1.94
==========
Dividends Paid Per Share of Common Stock $ 1.08
==========
* Primarily includes financing activities at the parent and intercompany
eliminations relating to basic generation service and basic gas supply
service.
Attachment 4
Reconciliation of 2nd Qtr Results
2002 to 2001
(excluding impairment and other charges)
2nd Qtr 2001 Income from Continuing Operations $ 0.72
PSE&G
Lower Margins $ (0.08)
Other items (0.04)
PSEG Power
Lower Trading Margins (0.06)
Stronger BGS Margins 0.07
Higher O&M due to timing of outages and Other Items (0.11)
PSEG Global - Timing of Eagle Point payment 0.16
PSEG Resources - Loss on KKR Portfolio (0.10)
Change from Prior Period (0.16)
-------
2nd Qtr 2002 Income from contininuing operations, excluding charges related to Argentina $ 0.56
=======
Reconciliation of Year-to-Date Results
2002 to 2001
(excluding impairment and other charges)
YTD 2001 Income from Continuing Operations $ 1.96
PSE&G
Weather $ (0.11)
Lower Margins (Higher Gas Margins from rate relief, partially offset by various items) (0.03)
Less Interest from 2001 Intercompany Note (0.08)
Restructuring related items - Higher securitization amortization (0.09)
PSEG Power
Lower Trading Margins (0.12)
Stronger BGS Margins 0.14
Interest Savings from 2001 Intercompany Note 0.08
Higher O&M due to timing of outages and Other Items (0.11)
PSEG Resources - Losses on KKR Portfolio partially offset by new investments (0.04)
Other Items (0.02)
------
Change from Prior Period (0.38)
-------
2002 Income from continuing operations, excluding charges related to Argentina $ 1.58
=======
Attachment 5
PSEG Energy Holdings
Summary of Impairments and Other Charges by Investment
------------------------------------------------------
Quarter YTD
(in millions) EPS (in millions) EPS
--------------- ---- --------------- ---
PSEG Global:
- ------------
Argentina - EDEERSA and Assets Held for Sale to AES
Writedown of Investment and Operating Losses $ 343 $1.66 $ 374 $1.81
Goodwill Impairment - - 36 0.18
------------------------- ------------------------
Total Argentina 343 1.66 410 1.99
------------------------- ------------------------
India - Tanir Bavi
Discontinued Operations 12 0.06 9 0.04
Goodwill Impairment - - 18 0.09
------------------------- ------------------------
Total Tanir Bavi 12 0.06 27 0.13
------------------------- ------------------------
Brazil - RGE
Goodwill Impairment - - 34 0.16
------------------------- ------------------------
SubTotal for PSEG Global $ 355 $1.72 $ 471 $2.28
========================= ========================
PSEG Energy Technologies:
- -------------------------
Discontinued Operations $ 25 $0.12 $ 28 $0.14
Goodwill impairment - - 32 0.15
------------------------- ------------------------
SubTotal PSEG Energy Technologies 25 0.12 60 0.29
------------------------- ------------------------
Total by Investment $ 380 $1.84 $ 531 $2.57
========================= ========================
Summary of Impairments and Other Charges by Income Statement Presentation
-------------------------------------------------------------------------
2nd Quarter YTD
(in millions) EPS (in millions) EPS
--------------- ---- --------------- ---
Argentina - Writedown of Investments and Operating Losses $ 343 $1.66 $ 374 $1.81
Discontinued Operations 37 0.18 37 0.18
Goodwill Impairment - - 120 0.58
------------------------- ------------------------
Total by Income Statement Presentation $ 380 $1.84 $ 531 $2.57
========================= ========================
Attachment 6
PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED
CONDENSED BALANCE SHEETS (Unaudited)
(Millions of Dollars)
As of
June 30, 2002 December 31, 2001
----------------- -----------------------
ASSETS:
CURRENT ASSETS $ 3,035 $ 3,285
NET PROPERTY, PLANT AND EQUIPMENT 10,489 10,064
NONCURRENT ASSETS 11,887 12,075
----------------- -----------------------
TOTAL ASSETS $ 25,411 $ 25,424
================= =======================
LIABILITIES AND CAPITALIZATION:
CURRENT LIABILITIES
Long-Term Debt Due Within One Year $ 1,415 $ 1,213
Commercial Paper and Loans 1,693 1,338
Other 1,679 2,170
----------------- -----------------------
Total Current Liabilities 4,787 4,721
----------------- -----------------------
NONCURRENT LIABILITIES 5,704 5,505
----------------- -----------------------
CAPITALIZATION:
Long-Term Debt 6,625 6,437
Securitization Debt 2,293 2,351
Project Level, Non-Recourse Debt 1,546 1,513
----------------- -----------------------
Total Long-Term Debt 10,464 10,301
SUBSIDIARIES' PREFERRED SECURITIES 760 760
----------------- -----------------------
COMMON STOCKHOLDERS' EQUITY
Common Stock 3,633 3,599
Treasury Stock (981) (981)
Retained Earnings 1,384 1,809
Accumulated Other Comprehensive Income (Loss) (340) (290)
----------------- -----------------------
Total Common Stockholders' Equity 3,696 4,137
----------------- -----------------------
Total Capitalization 14,920 15,198
----------------- -----------------------
TOTAL LIABILITIES AND CAPITALIZATION $ 25,411 $ 25,424
================= =======================
Financial covenants contained in PSEG's credit facilities include the ratio
of debt (excluding non-recourse project financings and securitization debt and
including commercial paper and loans, certain letters of credit and similar
instruments) to total capitalization. At the end of any quarterly financial
period such ratio shall not be more than 0.70 to 1. As of June 30, 2002, the
ratio of debt to capitalization as calculated pursuant to the debt covenants was
0.68 to 1.
Attachment 7
Public Service Electric and Gas Company
Electric and Gas Sales to Customers
June 2002
Electric Sales
Millions of Kilowatthours
-------------------------
Three Change vs Six Change vs
Months Ended 2001 Months Ended 2001
------------ --------- ------------ ---------
Residential 2,862 1.6% 5,611 -0.4%
Commercial 5,310 2.3% 10,312 0.0%
Industrial 1,719 -13.0% 3,311 -15.5%
Total -0.9% -3.1%
Gas Sold and Transported
Millions of Therms
------------------
Three Change vs Six Change vs
Months Ended 2001 Months Ended 2001
------------ --------- ------------ ---------
Residential Sales 185 3.9% 755 -9.6%
Commercial - Firm Sales 74 -12.9% 307 -20.0%
Industrial - Firm Sales 7 -12.5% 31 -14.1%
Gas Transported 271 27.8% 612 15.3%
Total * 2.6% -4.3%
* Includes interruptible and cogeneration sales