EXHIBIT 99
PSEG Investor News NYSE:PEG
For further information, contact:
> Brian Smith, Director, Investor Relations Phone: 973-430-6564
> Sue Carson, Director, Financial Communications Phone: 973-430-6565
> Greg McLaughlin, Sr. Investor Relations Analyst Phone: 973-430-6568
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January 28, 2003
PSEG ANNOUNCES 2002 RESULTS OF $3.76 PER SHARE,
OR REPORTED EARNINGS OF $1.17 REFLECTING CHARGES OF $2.59,
ON STRONG 4th QUARTER BY PSEG POWER AND PSE&G
In a Year of Turbulence for the Energy Industry,
Results Are Well Within Targeted Range
PSEG Is Providing Initial 2003 EPS Guidance
Of $3.70 to $3.90 from Ongoing Operations
Public Service Enterprise Group (PSEG) announced today (January 28) that
results for the year 2002 were $786 million or $3.76 per share of common stock,
based on 209 million average shares outstanding and excluding various charges of
$541 million or $2.59 per share. Including these charges, PSEG's reported
earnings were $245 million or $1.17 per share.
PSEG also announced today that results for the fourth quarter of 2002 were
$250 million or $1.16 per share of common stock, based on 216 million average
shares outstanding and excluding various charges of $5 million or 2 cents per
share. Including these charges, PSEG's fourth-quarter reported earnings were
$245 million or $1.14 per share.
Attachments to this release provide details and reconciliations of 2002
results and comparative 2001 results, including the following: Charges related
to PSEG Global's investments in Argentina; discontinuation of operations at
Global's Tanir Bavi generating facility in India and certain operations of PSEG
Energy Technologies that were largely reported in the second quarter; goodwill
impairments recorded as of January 1, 2002 for PSEG Energy Holdings, and
quarterly and 12-month results for PSEG's principal subsidiaries - Public
Service Electric and Gas Company (PSE&G), PSEG Power and PSEG Energy Holdings.
"PSEG achieved results that were well within our targeted range because our
diverse portfolio of businesses enabled us to perform extremely well in the
turbulent energy marketplace," according to E. James Ferland, chairman and chief
executive officer.
"The excellence of PSEG Power's nuclear operations and PSE&G's continuing
focus on cost controls were key drivers behind our solid performance in 2002,"
he said. "During the fourth quarter in particular, Power benefited from its
successful participation in New Jersey's initial basic generation service (BGS)
auction, while PSE&G had stronger, weather-related gas sales."
Ferland said PSEG Power's nuclear generating plants - Hope Creek, Salem 1
and 2 and Peach Bottom 2 and 3 - produced a combined capacity factor of nearly
94% during 2002, which represented more than 60% of Power's generation output
for the year.
These positive factors were offset primarily by higher interest costs
incurred by PSEG and its subsidiaries, the absence of certain tax benefits
realized by PSE&G in 2001 and comparatively lower contributions from investments
at PSEG Energy Holdings, he said.
Ferland said PSEG also made certain key strategic moves in the fourth
quarter to strengthen its creditworthiness as a means of mitigating the effects
of the volatile energy and financial markets. "We strengthened our balance sheet
and enhanced our liquidity with the sale of additional common stock and other
securities, which helped reduce our debt levels," he said. "We also sharply
curtailed capital spending by our various businesses on both the domestic and
international fronts."
Through the uncertainties of 2002, he noted, PSEG remained committed to the
preservation of its common stock dividend. "We have long recognized how
important our dividends are to shareholders," he said. "We have been paying
annual dividends on an uninterrupted basis since 1907 and, on January 21,
declared a common stock dividend of 54 cents per share for the first quarter of
2003."
KEY DEVELOPMENTS - 2002
In the fourth quarter, PSEG took several steps to enhance its financial
position. They included closing on a new three-year credit facility for $350
million, which replaced a five-year, $150 million facility. "Our ability to
upsize a credit facility in this environment reflects our financial strength,"
Ferland said. "As a result of our actions in 2002, we finished the year with
$1.9 billion of available liquidity. In 2003, our liquidity will remain strong
and we will have very manageable debt maturities."
Also in the fourth quarter, the company issued $180 million of preferred
securities and $460 million of common stock, the proceeds of which were used to
reduce debt levels. In the third quarter, the company had issued $460 million of
participating units that are convertible to common stock. Proceeds were also
used to reduce debt. All together since Labor Day, PSEG issued over $1.1 billion
of equity, equity-linked and preferred securities.
Ferland said PSEG Power, the wholesale energy supply business, has spread
out its capital expenditure requirements by extending for about a year the
completion of three natural gas-fired, combined-cycle facilities now under
construction in New Jersey, New York and Indiana. "These modest delays will
better match the in-service dates of these facilities with the projected energy
needs of consumers in those regions and spread the remaining capital
requirements more effectively," he said.
He added that PSEG Energy Holdings has ceased making new capital
investments at two of its subsidiaries, PSEG Resources and PSEG Global, through
2004. "For the foreseeable future, these businesses will focus on maximizing the
value of their existing investments," he said.
As previously announced, these actions by PSEG Power and PSEG Energy
Holdings will reduce their 2003 capital requirements by about $500 million.
In another fourth-quarter 2002 development, Ferland said the company
recorded a pension-related balance sheet charge to Other Comprehensive Income of
about $300 million. "This is an effect of the continued decline in the financial
markets, which caused the value of our pension assets to drop below our
accumulated pension obligation," he said. "Many other companies were faced with
this situation in 2002."
Ferland said this balance sheet charge would be adjusted annually, based on
market conditions and company contributions, and removed completely when the
assets again exceed the accumulated pension obligation. "During this year, we
will continue to monitor the market closely and also evaluate the benefit of
increased pension contributions by the company in an effort to bring the pension
assets and obligations in line with each other," he said.
He emphasized that this 2002 pension-related charge had no effect on
earnings and that its impact on the balance sheet should be offset this year. He
explained that PSEG will be adopting, as required, SFAS No. 143 "Accounting for
Asset Retirement Obligations" (SFAS 143) in the first quarter, which, in PSEG's
case, deals primarily with the adjustment of certain liabilities associated with
the decommissioning of PSEG Power's nuclear and fossil generating plants. "We
expect the adoption of this standard to have a favorable impact on earnings and
equity," he said. "This impact, which is not reflected in our 2003 guidance,
should more than offset the pension charge to equity."
"Going into 2003, we have reduced our debt ratio to the low 60% range,"
Ferland said. "By the end of the year, this amount is expected to decline into
the high 50s as a result of our reduced capital spending program and other
factors."
FINANCIAL OUTLOOK - 2003
In looking ahead, Ferland said PSEG is providing initial EPS guidance of
$3.70 to $3.90 per share from ongoing operations for 2003.
He said results for 2003 would depend on several factors. In February, the
New Jersey Board of Public Utilities (BPU) will hold its second BGS auction. He
said the auction structure has been modified this year to incorporate hourly
rates for a small percentage of large customers. The load to serve all remaining
customers on fixed seasonal pricing will be auctioned in two time periods - 10
months and 34 months, he said. "This will have the effect of moving each
contract to the beginning of the peak summer usage, which should provide the
opportunity for more cost-effective, long-term contracts between the utilities
and the suppliers," he said.
PSEG Power will continue to benefit from the results of the initial BGS
auction until August 1. Overall, Power plans to term up more than 75% of its PJM
ISO assets.
A second key event in 2003 for PSEG will be the completion of PSE&G's
electric base rate case. This will conclude the transition process outlined in
the state's energy master plan implemented on August 1, 1999. A final decision
on the rate increase is expected before
August 1, 2003. Last May, PSE&G filed a request for a $250 million increase in
annual revenues. Although limited to this amount, updates filed later would
support a revenue increase of more than $300 million.
#####
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Readers are cautioned that statements contained in this press release about
our and our subsidiaries' future performance, including future revenues,
earnings, strategies, prospects and all other statements that are not purely
historical, are forward-looking statements for purposes of the safe harbor
provisions under The Private Securities Litigation Reform Act of 1995. Although
we believe that our expectations are based on reasonable assumptions, we can
give no assurance they will be achieved. The results or events predicted in
these statements may differ materially from actual results or events. Factors
which could cause results or events to differ from current expectations include,
among other things: the effects of weather; the performance of generating units
and transmission systems; the availability and prices for oil, gas, coal,
nuclear fuel and electricity; changes in the markets for electricity and other
energy-related commodities; changes in the number of participants and the risk
profile of such participants in the energy marketing and trading business; the
effectiveness of our risk management and internal controls systems; the effects
of regulatory decisions and changes in law; changes in competition in the
markets we serve; the ability to recover regulatory assets and other potential
stranded costs; the outcomes of litigation and regulatory proceedings or
inquiries; the timing and success of efforts to develop domestic and
international power projects; conditions of the capital markets and equity
markets; advances in technology; changes in accounting standards; changes in
interest rates and in financial and foreign currency markets generally; the
economic and political climate and growth in the areas in which we conduct our
activities; and changes in corporate strategies. For further information, please
refer to our Annual Report on Form 10-K and subsequent reports on Form 10-Q and
Form 8-K filed with the Securities and Exchange Commission. These documents
address in further detail our business, industry issues and other factors that
could cause actual results to differ materially from those indicated in this
release. In addition, any forward-looking statements included herein represent
our estimates only as of today and should not be relied upon as representing our
estimates as of any subsequent date. While we may elect to update
forward-looking statements from time to time, we specifically disclaim any
obligation to do so, even if our estimates change, unless otherwise required by
applicable securities laws.
================================================================================
Attachment 1
PSEG Results
December 31, 2002
(Unaudited)
- ---------------------------------------------------------------------------------------------------------
Fourth Quarter 12 Months
2002 2001 2002 2001
- ---------------------------------------------------------------------------------------------------------
Earnings ($Millions)
- --------------------
PSE&G $ 72 $ 25 $201 $ 230
PSEG Power 144 101 468 394
PSEG Energy Holdings
PSEG Global* (5) 33 68 100
PSEG Resources 48 39 78 71
PSEG Energy Technologies - - (2) (2)
PSEG Energy Holdings (2) (2) (6) (2)
----------------------------------------------
Subtotal 41 70 138 167
Loss from Argentine Investments 5 - (370) -
Loss from Discontinued Operations,
including Loss on Disposal (10) 2 (51) (15)
Cumulative Effect of a Change in
Accounting Principle - - (120) 9
----------------------------------------------
Total PSEG Energy Holdings 36 72 (403) 161
----------------------------------------------
PSEG (7) (3) (21) (15)
- ---------------------------------------------------------------------------------------------------------
PSEG Net Income $245 $ 195 $245 $770
- ---------------------------------------------------------------------------------------------------------
Total Impairment and Other Charges $ (5) $ 2 $(541) $ (6)
- ---------------------------------------------------------------------------------------------------------
PSEG Income from Continuing Operations,
Excluding Losses from Argentine Investments $ 250 $ 193 $ 786 $ 776
- ---------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------
Average Shares Outstanding (millions) 216 207 209 208
- ---------------------------------------------------------------------------------------------------------
EPS
- ---
PSE&G $ 0.34 $ 0.12 $ 0.96 $ 1.11
PSEG Power 0.67 0.49 2.24 1.89
PSEG Energy Holdings
PSEG Global* (0.03) 0.16 0.33 0.48
PSEG Resources 0.22 0.19 0.37 0.34
PSEG Energy Technologies - - (0.01) (0.01)
PSEG Energy Holdings (0.01) (0.01) (0.03) (0.01)
----------------------------------------------
Subtotal 0.18 0.34 0.66 0.80
Loss from Argentine Investments 0.03 - (1.77) -
Loss from Discontinued Operations,
including Loss on Disposal (0.05) 0.01 (0.24) (0.07)
Cumulative Effect of a Change in
Accounting Principle - - (0.58) 0.04
----------------------------------------------
Total PSEG Energy Holdings 0.16 0.35 (1.93) 0.77
----------------------------------------------
PSEG (0.03) (0.02) (0.10) (0.07)
- ---------------------------------------------------------------------------------------------------------
PSEG Net Income $ 1.14 $ 0.94 $ 1.17 $ 3.70
- ---------------------------------------------------------------------------------------------------------
Total Impairment and Other Charges $ (0.02) $ 0.01 $ (2.59) $(0.03)
- ---------------------------------------------------------------------------------------------------------
PSEG Income from Continuing Operations,
Excluding Losses from Argentine Investments $ 1.16 $ 0.93 $ 3.76 $ 3.73
- ---------------------------------------------------------------------------------------------------------
*PSEG Global's 2002 amounts exclude losses from Argentine Investments. Including
these amounts, PSEG Global had no Income from continuing operations for the
quarter ended December 31, 2002 and had a loss from continuing operations of
$302 million of $1.44 per share for the twelve months ended December 31, 2002.
Attachment 2
PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED
CONDENSED STATEMENTS OF OPERATIONS (Unaudited)
(Millions, except for Per Share Data)
- ------------------------------------------------------------------------------------------------------------------------------------
Three Months Ended December 31, 2002
- ------------------------------------------------------------------------------------------------------------------------------------
PSEG Energy
PSEG PSE&G PSEG Power Holdings Other*
--------- ---------- ----------- ----------- --------
Operating Revenues $ 2,700 $ 1,625 $1,329 $ 205 $ (459)
Operating Expenses
Energy Costs 1,424 1,030 818 35 (459)
Operation & Maintenance 531 261 220 57 (7)
Write-down of Project Investments (9) - - (9) -
Depreciation & Amortization 137 93 29 10 5
Taxes Other than Income Taxes 34 34 - - -
--------- ---------- ----------- ----------- --------
Total Operating Expenses 2,117 1,418 1,067 93 (461)
--------- ---------- ----------- ----------- --------
Operating Income 583 207 262 112 2
Other Income and Deductions 12 12 - (3) 3
Interest Expense and Preferred Securities Dividend Requirements (210) (105) (31) (54) (20)
Income Taxes (130) (42) (87) (9) 8
--------- ---------- ----------- ----------- --------
INCOME (LOSS) FROM CONTINUING OPERATIONS 255 72 144 46 (7)
Loss from Discontinued Operations, net of tax (10) - - (10) -
--------- ---------- ----------- ----------- --------
NET INCOME (LOSS) $ 245 $72 $144 $ 36 $ (7)
======================================================
Income (Loss) from Continuing Operations $ 255 72 144 46 (7)
Writedown of Argentine Investments, net of tax (5) - - (5) -
Income (Loss) from Continuing Operations, --------- ---------- ----------- ----------- --------
Excluding Losses from Argentine Investments $ 250 $72 $144 $ 41 $ (7)
=======================================================
Effective Tax Rate 34% 37% 38% 15%
Weighted Average Common Shares Outstanding (000's): 215,682
=========
Earnings Per Share (Basic and Diluted):
Income from Continuing Operations $ 1.19
Loss from Discontinued Operations, net of tax (0.05)
---------
Net Income $ 1.14
=========
Earnings Per Share (Basic and Diluted):
Income from Continuing Operations $ 1.19
Write-down of Argentine Investments (0.03)
Income from Continuing Operations, ---------
Excluding Losses from Argentine Investments $ 1.16
=========
Dividends Paid Per Share of Common Stock $ 0.54
=========
- ------------------------------------------------------------------------------------------------------------------------------------
Three Months Ended December 31, 2001
- ------------------------------------------------------------------------------------------------------------------------------------
PSEG Energy
PSEG PSE&G PSEG Power Holdings Other*
--------- ---------- ----------- --------------- --------
Operating Revenues $ 1,738 $ 1,433 $ 533 $257 $ (485)
Operating Expenses
Energy Costs 608 918 141 34 (485)
Operation & Maintenance 489 254 203 36 (4)
Write-down of Project Investments 7 - - 7 -
Depreciation & Amortization 123 98 12 7 6
Taxes Other than Income Taxes 29 29 - - -
--------- ---------- ----------- --------------- --------
Total Operating Expenses 1,256 1,299 356 84 (483)
--------- ---------- ----------- --------------- --------
Operating Income 482 134 177 173 (2)
Other Income and Deductions 3 5 3 (4) (1)
Interest Expense and Preferred Securities Dividend Requirements (202) (109) (28) (64) (1)
Income Taxes (90) (5) (51) (35) 1
--------- ---------- ----------- --------------- --------
INCOME (LOSS) FROM CONTINUING OPERATIONS 193 25 101 70 (3)
Loss from Discontinued Operations, net of tax 2 - - 2 -
--------- ---------- ----------- --------------- --------
NET INCOME (LOSS) $ 195 $ 25 $ 101 $ 72 $ (3)
========= ========== =========== =============== ========
Effective Tax Rate 32% 15% 34% 32%
Weighted Average Common Shares Outstanding (000's): 207,269
=========
Earnings Per Share (Basic and Diluted):
Income from Continuing Operations $ 0.93
Loss from Discontinued Operations, net of tax 0.01
---------
Net Income $ 0.94
=========
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, except for Per Share Data)
- -------------------------------------------------------------------------------------------------------------------------
Twelve Months Ended December 31, 2002
- -------------------------------------------------------------------------------------------------------------------------
PSEG Energy
PSEG PSE&G PSEG Power Holdings Other*
---------- -------- --------- ------------- ---------
Operating Revenues $ 8,390 $ 5,919 $3,670 $ 749 $(1,948)
Operating Expenses
Energy Costs 3,769 3,684 1,886 147 (1,948)
Operation & Maintenance 1,896 982 773 165 (24)
Write-down of Project Investments 497 - - 497 -
Depreciation & Amortization 571 409 108 35 19
Taxes Other than Income Taxes 131 131 - - -
---------- -------- --------- ------------- ---------
Total Operating Expenses 6,864 5,206 2,767 844 (1,953)
---------- -------- --------- ------------- ---------
Operating Income (Loss) 1,526 713 903 (95) 5
Other Income and Deductions (22) 26 - (50) 2
Interest Expense and Preferred Securities Dividend Requirements (840) (423) (122) (237) (58)
Income Taxes (248) (115) (313) 150 30
---------- -------- --------- ------------- ---------
INCOME (LOSS) FROM CONTINUING OPERATIONS 416 201 468 (232) (21)
Loss from Discontinued Operations, including Loss on Disposal,
net of tax (51) - - (51) -
---------- -------- --------- ------------- ---------
INCOME (LOSS) BEFORE CUMULATIVE EFFECT OF
A CHANGE IN ACCOUNTING PRINCIPLE 365 201 468 (283) (21)
Cumulative Effect of a Change in Accounting Principle (120) - - (120) -
---------- -------- --------- ------------- ---------
NET INCOME (LOSS) $ 245 $201 $ 468 $ (403) $(21)
========== ======== ========= ============= =========
Income (Loss) from Continuing Operations $ 416 $ 201 $ 468 $ (232) $(21)
Loss from Operations of Impaired Assets, net of tax 40 - - 40 -
Write-down of Argentine Investments, net of tax 330 - - 330 -
Income from Continuing Operations, ---------- -------- --------- ------------- ---------
Excluding Losses from Argentine Investments $ 786 $201 $ 468 $138 $(21)
========== ======== ========= ============= =========
Effective Tax Rate 37% 36% 40% 42%
Weighted Average Common Shares Outstanding (000's): 208,813
==========
Earnings Per Share (Basic and Diluted):
Income from Continuing Operations $ 1.99
Loss from Discontinued Operations, including Loss on Disposal (0.24)
----------
Income Before Cumulative Effect of a Change in Accounting
Principle 1.75
Cumulative Effect of A Change in Accounting Principle (0.58)
----------
Net Income $ 1.17
==========
Earnings Per Share (Basic and Diluted):
Income from Continuing Operations $ 1.99
Loss from Operations of Impaired Assets, net of tax 0.19
Write-down of Argentine Investments, net of tax 1.58
Income from Continuing Operations, ----------
Excluding Losses from Argentine Investments $ 3.76
==========
Dividends Paid Per Share of Common Stock $ 2.16
==========
- -------------------------------------------------------------------------------------------------------------------------
Twelve Months Ended December 31, 2001
- -------------------------------------------------------------------------------------------------------------------------
PSEG Energy
PSEG PSE&G PSEG Power Holdings Other*
---------- -------- --------- ------------- ---------
Operating Revenues $ 7,055 $ 6,091 $2,452 $ 638 $(2,126)
Operating Expenses
Energy Costs 2,674 3,913 832 55 (2,126)
Operation & Maintenance 1,841 996 738 119 (12)
Write-down of Project Investments 7 - - 7 -
Depreciation & Amortization 496 370 95 16 15
Taxes Other than Income Taxes 121 121 - - -
---------- -------- --------- ------------- ---------
Total Operating Expenses 5,139 5,400 1,665 197 (2,123)
---------- -------- --------- ------------- ---------
Operating Income (Loss) 1,916 691 787 441 (3)
Other Income and Deductions 35 107 - (7) (65)
Interest Expense and Preferred Securities Dividend Requirements (794) (479) (143) (202) 30
Income Taxes (381) (89) (250) (65) 23
---------- -------- --------- ------------- ---------
INCOME FROM CONTINUING OPERATIONS 776 230 394 167 (15)
Loss from Discontinued Operations, net of tax (15) - - (15) -
---------- -------- --------- ------------- ---------
INCOME BEFORE CUMULATIVE EFFECT OF A
CHANGE IN ACCOUNTING PRINCIPLE 761 230 394 152 (15)
Cumulative Effect of a Change in Accounting Principle 9 - - 9 -
---------- -------- --------- ------------- ---------
NET INCOME (LOSS) $ 770 $ 230 $ 394 $161 $(15)
========== ======== ========= ============= =========
Effective Tax Rate 32% 28% 39% 25%
Weighted Average Common Shares Outstanding (000's): 208,226
==========
Earnings Per Share (Basic and Diluted):
Income from Continuing Operations $ 3.73
Loss from Discontinued Operations (0.07)
----------
Income Before Cumulative Effect of a Change in Accounting
Principle 3.66
Cumulative Effect of A Change in Accounting Principle 0.04
----------
Net Income $ 3.70
==========
Dividends Paid Per Share of Common Stock $ 2.16
==========
* Primarily includes financing activities at the parent and intercompany
eliminations relating to basic generation service and basic gas supply
service.
Attachment 4
Public Service Enterprise Group Incorporated
Reconciliation of Income from Continuing Operations
(excluding losses from Argenting Investments)
(unaudited)
Results for the three months ended December 31, 2001 0.93
PSE&G -
Weather 0.15
Gas Rate Relief 0.09
Miscellaneous (0.02)
PSEG Power -
Stronger Margins (primarily BGS) 0.31
2001 Cost of Removal (0.05)
O&M (0.03)
Interest (0.04)
Miscellaneous (0.01)
PSEG Energy Holdings -
Global - 2001 gains from Eagle point sale (.07), lower earnings
from TIE (.04), 2001 earnings from Argentina (.05), restructuring
and interest costs (.05) partially offset by higher earnings from acquisitions (0.19)
Resources 0.03
PSEG (Parent) - (0.01)
Change from Prior Period 0.23
-------
Results for the three months ended December 31, 2002 1.16
=======
Public Service Enterprise Group Incorporated
Reconciliation of Income from Continuing Operations
(excluding losses from Argenting Investments)
(unaudited)
Results for the twelve months ended December 31, 2001 3.73
PSE&G -
Higher Margins (primarily gas rate relief and weather offset by
lower DSM, Fiber Optic and other revenue) 0.14
Intercompany Note Interest (0.19)
Non-Recurring Tax Audit Adjustment in 2001 (0.17)
O&M Expenses 0.08
Miscellaneous (0.01)
PSEG Power -
Stronger Margins (primarily BGS) 0.53
Interest Expense (Intercompany Note Reduction Offset by New Debt Issued) 0.07
2001 Cost of Removal (0.04)
O&M expenses, primarily due to timing of outages (0.15)
Miscellaneous (0.06)
PSEG Energy Holdings -
Global - 2001 gains from Eagle point sale (.07) and lower earnings
from TIE (.11), and 2001 earnings from Argentina (.14),
partially offset by higher earnings from acquisitions .14, and improved operations (0.15)
Resources 0.03
PSEG Energy Holdings (Parent) (0.02)
PSEG (Parent) - (0.03)
------
Change from Prior Period 0.03
-------
Results for the twelve months ended December 31, 2002 3.76
=======
Attachment 5
PSEG Energy Holdings
Summary of Impairments and Other Charges by Investment-Net of Tax
------------------------------------------------------------------
4th 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 $ (5) $(0.03) $ 370 $1.77
Goodwill Impairment - - 36 0.18
------------------------- ------------------------
Total Argentina (5) (0.03) 406 1.95
------------------------- ------------------------
India - Tanir Bavi
Discontinued Operations - - 9 0.04
Goodwill Impairment - - 18 0.09
------------------------- ------------------------
Total Tanir Bavi - - 27 0.13
------------------------- ------------------------
Brazil - RGE
Goodwill Impairment - - 34 0.16
------------------------- ------------------------
Total for PSEG Global - - $ 467 $2.24
========================= ========================
PSEG Energy Technologies:
- -------------------------
Discontinued Operations $ 10 $0.05 $ 42 $0.20
Goodwill impairment - - 32 0.15
------------------------- ------------------------
Total PSEG Energy Technologies 10 0.05 74 0.35
------------------------- ------------------------
Total $ 5 $0.02 $ 541 $2.59
========================= ========================
Summary of Impairments and Other Charges by Income Statement Presentation-Net of Tax
------------------------------------------------------------------------------------
4th Quarter YTD
(in millions) EPS (in millions) EPS
--------------- ---- --------------- ---
Losses from Argentine Investments $ (5) $(0.03) $ 370 $1.77
Discontinued Operations 10 0.05 51 0.24
Goodwill Impairment - - 120 0.58
------------------------- ------------------------
Total by Income Statement Presentation $ 5 $ 0.02 $ 541 $2.59
========================= ========================
Attachment 6
PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED
CAPITALIZATION SCHEDULE (Unaudited)
(Millions)
As of December 31,
-----------------------------------------------------
2002 2001
----------------- -----------------------
DEBT
Commercial Paper and Loans $ 625 $ 1,053
Non-Recourse Note Payable 137 285
Long-Term Debt, including amounts due within one year 7,668 7,486
Securitization Debt, including amounts due within one year 2,351 2,472
Project Level, Non-Recourse Debt,
including amounts due within one year 1,721 1,418
----------------- -----------------------
Total Debt 12,502 12,714
SUBSIDIARIES' PREFERRED SECURITIES 1,400 760
----------------- -----------------------
COMMON STOCKHOLDERS' EQUITY
Common Stock 4,056 3,599
Treasury Stock (981) (981)
Retained Earnings 1,601 1,809
Accumulated Other Comprehensive Income (Loss) (693) (290)
----------------- -----------------------
Total Common Stockholders' Equity 3,983 4,137
----------------- -----------------------
TOTAL CAPITALIZATION $ 17,885 $ 17,611
================= =======================
As of December 31, 2002, our 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
was approximately 0.61. This ratio is calculated in a manner that is consistent
with the financial covenants contained in PSEG's credit facilities.
Attachment 7
Public Service Electric and Gas Company
Electric and Gas Sales to Customers
December 2002
Electric Sales
Millions of Kilowatthours
-------------------------
Three Change vs Twelve Change vs
Months Ended 2001 Months Ended 2001
------------ --------- ------------ ---------
Residential 2,911 11.0% 12,867 7.6%
Commercial 5,258 3.4% 21,766 2.5%
Industrial 1,622 -14.3% 6,782 -14.2%
Total 2.0% 0.8%
Gas Sold and Transported
Millions of Therms
------------------
Three Change vs Twelve Change vs
Months Ended 2001 Months Ended 2001
------------ --------- ------------ ---------
Residential Sales 497 38.6% 1,351 4.0%
Commercial - Firm Sales 191 25.0% 539 -8.5%
Industrial - Firm Sales 19 35.0% 55 -0.5%
Gas Transported 331 26.5% 1,194 22.3%
Total * 23.6% -3.8%
* Includes interruptible and cogeneration sales