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EXHIBIT 99
[LETTERHEAD OF PSEG INVESTOR NEWS]
April 29, 2004
PSEG ANNOUNCES FIRST-QUARTER 2004 RESULTS:
$1.14 PER SHARE FROM CONTINUING OPERATIONS
Termination of Collins Lease During Quarter
Highlights Efforts To Improve Risk Profile
Results Support Initial 2004 EPS Guidance
Of $3.60 to $3.80 Per Share From Continuing Operations
Company Continues To Face Challenges
Of Capacity Overbuild And Volatile Energy Prices
Public Service Enterprise Group (PSEG) announced today (April 29, 2004)
that earnings from continuing operations and net income for the first quarter of
2004 were $271 million or $1.14 per share of common stock, based on 239 million
average shares outstanding.
Comparatively, PSEG's earnings from continuing operations for the first
quarter of 2003 were $324 million or $1.43 per share of common stock, based on
226 million average shares outstanding. These earlier period results excluded a
below-the-line benefit of $370 million or $1.64 per share related to the
adoption of a new accounting standard for fossil and nuclear decommissioning and
also excluded charges of $13 million or 6 cents per share related to
discontinued operations. Net income, including these items, was $681 million or
$3.01 per share.
Attachments to this release provide a comparative summary of 2004 and
2003 results and other details about the quarterly results for PSEG and its
principal subsidiaries -- Public Service Electric and Gas Co. (PSE&G),
PSEG Power and PSEG Energy Holdings.
E. James Ferland, chairman and chief executive officer of PSEG, said
first-quarter results reflected a solid performance by PSE&G, due primarily to
higher electric rates, which became effective last August 1 and represented the
first increase in more than a decade. However, Ferland said the benefit of the
rate increase in the quarter was more than offset by various factors impacting
both PSEG Power and PSEG Energy Holdings.
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"Power's comparatively lower results were caused in large measure,"
Ferland explained, "by the absence of revenues from a market transition charge
collected from electric customers during a four-year period of industry
restructuring here in New Jersey. As expected, these revenues fell away last
August at the same time PSE&G's rate increase was implemented. Power's results
also reflected higher O&M costs at various electric generating facilities and
reduced basic generation service (BGS) margins due to lower volumes and to the
introduction of seasonal pricing last August."
PSEG Energy Holdings' quarterly results were lower than those of last
year's first quarter principally because the termination of PSEG Resources'
lease investment in the Collins generating facility in Illinois reduced earnings
on a one-time basis by about $17 million or 7 cents per share. Under the terms
of the lease termination, Resources received pre-tax proceeds of about $184
million of cash or more than 92% of its investment in the facility, which is
operated by Midwest Generation LLC, an indirect subsidiary of Edison Mission
Energy (EME).
"Despite the modest loss of 7 cents per share, the lease termination
substantially reduced our risk exposure to EME, with which Resources has lease
investments in two other coal-fired Illinois generating facilities," Ferland
said. "This is consistent with our strategic objective to continuously improve
our overall risk profile."
Other significant developments in the first quarter included the
following:
o The New Jersey Board of Public Utilities held the third annual
BGS auction in February. PSE&G was successful in securing 12- and
36-month contracts for the electric needs of their customers at
very competitive rates. This year, PSEG Power was a direct
participant in the auction and, combined with the results of
prior BGS auctions and other opportunities, has secured contracts
for more than 75% of its expected output over the next 18-24
months.
o In March, PSEG successfully completed a 4-year, $450 million
credit facility at PSEG and a 3-year, $600 million joint facility
at PSEG and PSEG Power. These new multi-year agreements
substantially extended the maturities and increased the capacity
of PSEG's liquidity facilities to $2.3 billion, of which
approximately $1.9 billion was available at March 31, 2004. "We
were very pleased with the market's response to these
transactions, both of which were oversubscribed," Ferland said.
o Also in March, PSEG Power issued $250 million of 5-year and $250
million of 10-year senior notes at rates of 3.75% and 5.00%,
respectively. The proceeds from these issuances, combined with
cash on hand, allowed PSEG Power to re-finance the $800 million
of non-recourse loans that were issued for the construction of
two generating plants in the Midwest.
In looking ahead, Ferland said that PSEG's major businesses have the
following 2004 earnings targets: PSE&G -- $320 to $340 million, PSEG Power --
$400 to $450 million, and PSEG Energy Holdings -- $130 to $150 million.
"PSEG's overall first-quarter results were not as strong as last year's
and have put greater pressure on us to perform well during the rest of 2004 to
achieve our guidance of $3.60 to $3.80 for the full year," he said.
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"Although PSEG Power was successful in achieving its hedging objective
in the 2004 BGS process, the auction was extremely competitive, which could
affect our margins," Ferland said. "This is why it will be essential that
Power's generating facilities, particularly its nuclear units, operate well
during the summer."
"Our Hope Creek nuclear station has undergone a planned maintenance
outage this spring and one of our Salem nuclear units is nearing completion of a
refueling and other improvements," he said. "We scheduled these outages to
assure reliability of service to our customers during the hot summer months."
Ferland said a strong performance by Power's generating fleet this
summer will help counter the pressures from earnings in the first quarter. "Over
the course of the year, we anticipate that nearly 90% of our generation output
will come from our low-cost nuclear and coal facilities, and most of these
assets are situated near the vast majority of our customers," he said.
Ferland said that the energy industry continues to be in a "highly
challenging" time. "We are facing such pressures as an oversupply of electric
generation capacity and the resulting competition, volatile energy prices and
market conditions, and demanding capital markets," he said. "This could
constrain near-term earnings growth for PSEG. Longer term, we expect capacity
prices to begin rebounding. This should improve future cash flows, improve our
range of business opportunities and provide prospects for growth."
- --------------------------------------------------------------------------------
FORWARD-LOOKING STATEMENT
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, capacity 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
PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED
March 31, 2004
(Unaudited)
First Quarter
--------------------
2003*
As Restated
2004 (Note 3)
------ -----------
Earnings Results (in Millions)
Income from Continuing Operations
- ---------------------------------
PSE&G $ 124 $ 100
PSEG Power 109 177
PSEG Energy Holdings
PSEG Global 45 45
PSEG Resources -- 11
PSEG Energy Holdings (2) (1)
------ ------
Total PSEG Energy Holdings 43 55
------ ------
PSEG (5) (8)
------ ------
Income from Continuing Operations $ 271 $ 324
------ ------
Loss from Discontinued Operations, including Loss on Disposal -- (13)
Cumulative Effect of a Change in Accounting Principle -- 370
------ ------
PSEG Net Income $ 271 $ 681
====== ======
====== ======
Fully Diluted Average Shares Outstanding (in Millions) 239 226
====== ======
Per Share Results (Diluted)
---------------------------
Income from Continuing Operations
- ---------------------------------
PSE&G $ 0.52 $ 0.44
PSEG Power 0.46 0.78
PSEG Energy Holdings
PSEG Global 0.19 0.20
PSEG Resources -- 0.05
PSEG Energy Holdings (0.01) (0.00)
------ ------
Total PSEG Energy Holdings 0.18 0.25
------ ------
PSEG (0.02) (0.04)
------ ------
Income from Continuing Operations $ 1.14 $ 1.43
------ ------
Loss from Discontinued Operations, including Loss on Disposal -- (0.06)
Cumulative Effect of a Change in Accounting Principle -- 1.64
------ ------
PSEG Net Income $ 1.14 $ 3.01
====== ======
Note 1:
- -------
Income from Continuing Operations include preferred stock dividends relating to
PSE&G of $1 million and $1 million, Global of $4 million and $4 million and
Resources of $1 million and $2 million for each of the quarters ended March 31,
2004 and 2003, respectively.
Note 2:
- -------
Basic Earnings per Share from Net Income was $1.15 and $3.02 per share for the
quarters ended March 31, 2004 and 2003, respectively.
Note 3:
- -------
2003 results reflect the restatement to correct foreign currency translation
impacts of Energy Holdings' equity method investment in RGE, a distribution
company in Brazil, and other minor items. The total impact of the restatement
for the 2003 quarter resulted in an increase in PSEG's and Energy Holdings' net
income of approximately $0.01 per share.
PUBLIC SERVICE ENTERPRISE GROUP
CONSOLIDATING STATEMENT OF OPERATIONS
For the Quarter Ended March 31, 2004
(Unaudited, $ Million)
PSEG
PSEG ENERGY
PSEG OTHER PSE&G POWER HOLDINGS
------ -------- ------- ------- --------
(Note 3)
OPERATING REVENUES $3,221 $ (866) $ 2,182 $ 1,692 $ 213
OPERATING EXPENSES
Energy Costs 1,823 (866) 1,419 1,224 46
Operation and Maintenance 546 (11) 278 230 49
Depreciation and Amortization 172 5 127 27 13
Taxes Other Than Income Taxes 45 -- 45 -- --
------ ------ ------- ------- -----
Total Operating Expenses 2,586 (872) 1,869 1,481 108
------ ------ ------- ------- -----
Income from Equity Method Investments 28 -- -- -- 28
------ ------ ------- ------- -----
OPERATING INCOME 663 6 313 211 133
Other Income 35 (4) 3 35 1
Other Deductions (23) -- (1) (20) (2)
Interest Expense (223) (23) (96) (41) (63)
Preferred Securities Dividends (1) 5 (1) -- (5)
------ ------ ------- ------- -----
INCOME FROM CONTINUING OPERATIONS
BEFORE INCOME TAXES (Note 1) 451 (16) 218 185 64
Income Taxes (180) 11 (94) (76) (21)
------ ------ ------- ------- -----
NET INCOME $ 271 $ (5) $ 124 $ 109 $ 43
====== ====== ======= ======= =====
For the Quarter Ended March 31, 2003
(Unaudited, $ Million)
PSEG
PSEG PSEG ENERGY
as Restated OTHER PSE&G POWER HOLDINGS
----------- -------- ------ ------ --------
(Note 2) (Note 3) (Note 2)
OPERATING REVENUES $3,288 $(880) $2,148 $1,830 $ 190
OPERATING EXPENSES
Energy Costs 1,953 (880) 1,507 1,291 35
Operation and Maintenance 519 (4) 286 202 35
Depreciation and Amortization 99 2 66 23 8
Taxes Other Than Income Taxes 44 -- 44 -- --
------ ----- ------ ------ -----
Total Operating Expenses 2,615 (882) 1,903 1,516 78
------ ----- ------ ------ -----
Income from Equity Method Investments 20 -- -- -- 20
OPERATING INCOME 693 2 245 314 132
Other Income 59 1 10 44 4
Other Deductions (43) (4) (1) (30) (8)
Interest Expense (198) (25) (97) (28) (48)
Preferred Securities Dividends (1) 6 (1) -- (6)
------ ----- ------ ------ -----
INCOME FROM CONTINUING OPERATIONS
BEFORE INCOME TAXES (Note 1) 510 (20) 156 300 74
Income Taxes (186) 12 (56) (123) (19)
------ ----- ------ ------ -----
INCOME FROM CONTINUING OPERATIONS 324 (8) 100 177 55
Loss from Discontinued Operations, including Loss on Disposal (13) -- -- -- (13)
------ ----- ------ ------ -----
INCOME BEFORE CUMULATIVE EFFECT OF A CHANGE
IN ACCOUNTING PRINCIPLE 311 (8) 100 177 42
Cumulative Effect of a Change in Accounting Principle, net of tax 370 -- -- 370 --
------ ----- ------ ------ -----
NET INCOME $ 681 $ (8) $ 100 $ 547 $ 42
====== ===== ====== ====== =====
Note 1:
- -------
Income from Continuing Operations before Income Taxes include preferred stock
dividends relating to PSE&G of $1 million and $1 million, Global of $4 million
and $4 million and Resources of $1 million and $2 million for the quarters ended
March 31, 2004 and 2003, respectively.
Note 2:
- -------
2003 results reflect the restatement to correct foreign currency impacts of
Energy Holdings' equity method investment in RGE, a distribution company in
Brazil, and other minor items.
Note 3:
- -------
Primarily includes financing activities at the parent and intercompany
eliminations.
PUBLIC SERVICE ENTERPRISE GROUP
CONSOLIDATING BALANCE SHEETS
As of March 31, 2004
(Unaudited, $ Million)
PSEG
PSEG ENERGY
PSEG OTHER PSE&G POWER HOLDINGS
------- ------- ------- ------ --------
(Note 2)
CURRENT ASSETS
Cash and Cash Equivalents $ 470 $ 2 $ 318 $ 27 $ 123
Accounts Receivable (Note 1) 1,723 (292) 948 847 220
Other Current Assets 1,222 (215) 284 743 410
------- ------- ------- ------ ------
Total Current Assets 3,415 (505) 1,550 1,617 753
------- ------- ------- ------ ------
NET PROPERTY, PLANT AND EQUIPMENT 12,502 127 6,544 4,668 1,163
------- ------- ------- ------ ------
NONCURRENT ASSETS
Regulatory Assets 4,710 -- 4,710 -- --
Long-Term Investments 4,747 48 133 43 4,523
Nuclear Decommissioning Fund 981 -- -- 981 --
Other Noncurrent Assets 1,360 (25) 369 382 634
------- ------- ------- ------ ------
Total Noncurrent Assets 11,798 23 5,212 1,406 5,157
------- ------- ------- ------ ------
TOTAL ASSETS $27,715 $ (355) $13,306 $7,691 $7,073
======= ======= ======= ====== ======
CURRENT LIABILITIES
Short-Term Debt $ 746 $ 289 $ 425 $ -- $ 32
Accounts Payable (Note 1) 1,083 (409) 703 750 39
Other Current Liabilities 1,388 152 443 439 354
------- ------- ------- ------ ------
Total Current Liabilities 3,217 32 1,571 1,189 425
------- ------- ------- ------ ------
NONCURRENT LIABILITIES
Deferred Income Taxes and ITC 4,124 (50) 2,693 -- 1,481
Regulatory Liabilities 526 -- 526 -- --
OPEB Costs 542 4 521 17 --
Other Noncurrent Liabilities 1,121 92 236 582 211
------- ------- ------- ------ ------
Total Noncurrent Liabilities 6,313 46 3,976 599 1,692
------- ------- ------- ------ ------
LONG-TERM DEBT - excluding amount
due within one year 12,605 1,461 5,095 3,316 2,733
------- ------- ------- ------ ------
SUBSIDIARIES' PREFERRED SECURITIES 80 (434) 80 -- 434
------- ------- ------- ------ ------
COMMON STOCKHOLDERS' EQUITY 5,500 (1,460) 2,584 2,587 1,789
------- ------- ------- ------ ------
TOTAL LIABILITIES AND CAPITALIZATION $27,715 $ (355) $13,306 $7,691 $7,073
======= ======= ======= ====== ======
Note 1:
- -------
Includes amounts related to transactions with affiliates.
Note 2:
- -------
Primarily includes PSEG (parent company), PSEG Services Corp. and intercompany
eliminations.
PUBLIC SERVICE ENTERPRISE GROUP
CONSOLIDATING BALANCE SHEETS
As of December 31, 2003
(Unaudited, $ Million)
PSEG
PSEG ENERGY
PSEG OTHER PSE&G POWER HOLDINGS
------- -------- ------- ------ --------
(Note 2)
CURRENT ASSETS
Cash and Cash Equivalents $ 452 $ 181 $ 140 $ 27 $ 104
Accounts Receivable (Note 1) 1,549 (393) 804 843 295
Other Current Assets 1,659 (276) 377 909 649
------- ------- ------- ------ ------
Total Current Assets 3,660 (488) 1,321 1,779 1,048
------- ------- ------- ------ ------
NET PROPERTY, PLANT AND EQUIPMENT 12,422 128 6,535 4,581 1,178
------- ------- ------- ------ ------
NONCURRENT ASSETS
Regulatory Assets 4,801 -- 4,801 -- --
Long-Term Investments 4,808 51 131 43 4,583
Nuclear Decommissioning Fund 985 -- -- 985 --
Other Noncurrent Assets 1,382 17 374 343 648
------- ------- ------- ------ ------
Total Noncurrent Assets 11,976 68 5,306 1,371 5,231
------- ------- ------- ------ ------
TOTAL ASSETS $28,058 $ (292) $13,162 $7,731 $7,457
======= ======= ======= ====== ======
CURRENT LIABILITIES
Short-Term Debt $ 1,027 $ 299 $ 423 $ -- $ 305
Accounts Payable (Note 1) 1,216 (358) 717 800 57
Other Current Liabilities 1,101 64 406 265 366
------- ------- ------- ------ ------
Total Current Liabilities 3,344 5 1,546 1,065 728
------- ------- ------- ------ ------
NONCURRENT LIABILITIES
Deferred Income Taxes and ITC 4,196 (6) 2,715 -- 1,487
Regulatory Liabilities 536 -- 536 -- --
OPEB Costs 532 4 509 16 3
Other Noncurrent Liabilities 896 83 187 429 197
------- ------- ------- ------ ------
Total Noncurrent Liabilities 6,160 81 3,947 445 1,687
------- ------- ------- ------ ------
LONG-TERM DEBT - excluding amount
due within one year 12,945 1,462 5,129 3,616 2,738
------- ------- ------- ------ ------
SUBSIDIARIES' PREFERRED SECURITIES 80 (509) 80 -- 509
------- ------- ------- ------ ------
COMMON STOCKHOLDERS' EQUITY 5,529 (1,331) 2,460 2,605 1,795
------- ------- ------- ------ ------
TOTAL LIABILITIES AND CAPITALIZATION $28,058 $ (292) $13,162 $7,731 $7,457
======= ======= ======= ====== ======
Note 1:
- -------
Includes amounts related to transactions with affiliates.
Note 2:
- -------
Primarily includes PSEG (parent company), PSEG Services Corp. and intercompany
eliminations.
Attachment 5
PUBLIC SERVICE ENTERPRISE GROUP
CONSOLIDATING STATEMENTS OF CASH FLOWS
For the Quarter Ended March 31, 2004
(Unaudited, $ Million)
PSEG
PSEG ENERGY
TOTAL OTHER PSE&G POWER HOLDINGS
------- -------- ----- ----- --------
(Note 1)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income (Note 2) $ 271 $ (5) $124 $ 109 $ 43
Adjustments to Reconcile Net Income to Net Cash Flows
From Operating Activities:
Depreciation and Amortization 172 3 127 27 15
Amortization of Nuclear Fuel 23 -- -- 23 --
Non-Cash Items 67 8 105 24 (70)
Net Decrease (Increase) in Accounts Receivable &
Unbilled Revenue (84) (101) (75) 6 86
Net Decrease in Accounts Payable (168) (57) (14) (50) (47)
Net Change in Other Current Assets and Liabilities 634 149 56 411 18
Other 35 (15) (39) 20 69
------- ----- ---- ----- -----
Net Cash Provided by (Used In) Operating Activities 950 (18) 284 570 114
------- ----- ---- ----- -----
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to Property, Plant, and Equipment (235) (1) (75) (147) (12)
Proceeds from the Sale of Investments 49 -- -- -- 49
Other 19 (103) 1 (111) 232
------- ----- ---- ----- -----
Net Cash (Used In) Provided By Investing Activities (167) (104) (74) (258) 269
------- ----- ---- ----- -----
CASH FLOWS FROM FINANCING ACTIVITIES:
Net Change in Short-Term Debt (10) (10) -- -- --
Issuance of Project-Level/Securitization Long-Term Debt 489 -- -- 488 1
Redemption of LTD and Project-Level/Securitization LTD (1,108) -- (32) (800) (276)
Return of Capital -- 75 -- -- (75)
Issuance of Common Stock/Contributed Capital 21 21 -- -- --
Cash Dividends Paid on Common Stock (130) (130) -- -- --
Other (26) (13) -- -- (13)
------- ----- ---- ----- -----
Net Cash Used In Financing Activities (764) (57) (32) (312) (363)
------- ----- ---- ----- -----
Effect of Exchange Rate Changes on Cash (1) -- -- -- (1)
------- ----- ---- ----- -----
Net Increase (Decrease) in Cash and Cash Equivalents 18 (179) 178 -- 19
Cash and Cash Equivalents at Beginning of Period 452 181 140 27 104
------- ----- ---- ----- -----
Cash and Cash Equivalents at End of Period $ 470 $ 2 $318 $ 27 $ 123
======= ===== ==== ===== =====
For the Quarter Ended March 31, 2003
(Unaudited, $ Million)
PSEG
PSEG ENERGY
TOTAL OTHER PSE&G POWER HOLDINGS
----- -------- ----- ----- --------
(Note 1)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income (Note 2) $ 681 $ (8) $ 100 $ 547 $ 42
Adjustments to Reconcile Net Income to Net Cash Flows
From Operating Activities:
Depreciation and Amortization 99 -- 66 23 10
Amortization of Nuclear Fuel 23 -- -- 23 --
Non-Cash Items (314) 20 38 (339) (33)
Net Decrease (Increase) in Accounts Receivable &
Unbilled Revenue (205) 227 (211) (200) (21)
Net Increase (Decrease) in Accounts Payable 115 (164) 14 314 (49)
Net Change in Other Current Assets and Liabilities 169 (92) 76 205 (20)
Other 73 (14) -- 42 45
----- ----- ----- ----- -----
Net Cash Provided by (Used In) Operating Activities 641 (31) 83 615 (26)
----- ----- ----- ----- -----
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to Property, Plant, and Equipment (315) (1) (91) (153) (70)
Proceeds from the Sale of Investments (18) -- -- -- (18)
Other (4) 142 8 (212) 58
----- ----- ----- ----- -----
Net Cash (Used In) Provided By Investing Activities (337) 141 (83) (365) (30)
----- ----- ----- ----- -----
CASH FLOWS FROM FINANCING ACTIVITIES:
Net Change in Short-Term Debt (39) 167 (58) (239) 91
Issuance of Project-Level/Securitization Long-Term Debt 401 -- 150 -- 251
Redemption of LTD and Project-Level/Securitization LTD (501) -- (180) -- (321)
Return of Capital -- -- -- -- --
Issuance of Common Stock/Contributed Capital 21 (149) 170 -- --
Cash Dividends Paid on Common Stock (122) (122) -- -- --
Other 1 (5) -- -- 6
----- ----- ----- ----- -----
Net Cash (Used In) Provided By Financing Activities (239) (109) 82 (239) 27
----- ----- ----- ----- -----
Effect of Exchange Rate Changes on Cash -- -- -- -- --
----- ----- ----- ----- -----
Net Increase (Decrease) in Cash and Cash Equivalents 65 1 82 11 (29)
Cash and Cash Equivalents at Beginning of Period 149 -- 35 26 88
----- ----- ----- ----- -----
Cash and Cash Equivalents at End of Period $ 214 $ 1 $ 117 $ 37 $ 59
===== ===== ===== ===== =====
Note 1:
- -------
Primarily includes activities at the parent and intercompany eliminations.
Note 2:
- -------
Net Income includes preferred stock dividends relating to PSE&G of $1 million
and $1 million, Global of $4 million and $4 million and Resources of $1 million
and $2 million for the quarters ended March 31, 2004 and 2003, respectively.
Attachment 6
PUBLIC SERVICE ENTERPRISE GROUP
Quarter-to-Quarter EPS Reconciliation
March 31, 2004 vs. March 31, 2003
(Unaudited)
PSEG 1st Quarter 2003 Net Income (as restated)* $ 3.01
======
Loss from Discontinued Operations (ET and Global's investments in Rades) 0.06
Cumulative Effect of a Change in Accounting Principal (adoption of Asset
Retirement Obligation at Power) (1.64)
PSEG 1st Quarter 2003 Income from Continuing Operations (as restated)*: $ 1.43
======
PSE&G B/(W)
- ----- ------
1st Quarter 2003 $ 0.44
------
Electric Rate Case 0.10
Weather (degree days were 47 DD warmer or 1.7%) (0.01)
Other Margin (volumes and demand) 0.02
Additional Shares Outstanding (2003 Issuance, DRIP) (0.03)
1st Quarter 2004 $ 0.52 $ 0.08
------
PSEG Power
- ----------
1st Quarter 2003 $ 0.78
------
Lower Operating Margins (MTC and BGS seasonality) (0.18)
O&M and Depreciation (0.08)
Interest Expense (Midwest Financing costs) (0.04)
Additional Shares Outstanding (2003 Issuance, DRIP) (0.02)
1st Quarter 2004 $ 0.46 $(0.32)
------
PSEG Energy Holdings
- --------------------
1st Quarter 2003 (as restated)* $ 0.25
------
Global
------
Operations- flat --
Additional Shares Outstanding (2003 Issuance, DRIP) (0.01) (0.01)
-----
Resources
---------
Termination of EME-Collins Lease (0.07)
Operations 0.02 (0.05)
-----
Energy Holdings (Parent) (0.01)
------------------------
1st Quarter 2004 $ 0.18 $(0.07)
------
Public Service Enterprise Group
- -------------------------------
1st Quarter 2003 $(0.04)
------
Interest Expense 0.01
Other 0.01
1st Quarter 2004 $(0.02) $ 0.02
------
PSEG 1st Quarter 2004 Income from Continuing Operations $ 1.14
======
Loss from Discontinued Operations (Global's investment in Rades-
includes operating earnings offset by loss on disposal) --
PSEG 1st Quarter 2004 Net Income $ 1.14
======
* See Attachment 1, Note 3 for further details regarding the 2003
restatement.
Attachment 7
PSEG Global L.L.C.
Investment Results
For the Quarter Ended March 31, 2004
(Unaudited, $ Million)
As of For the Quarter Ended
March 31, 2004 March 31, 2004
-------------- -----------------------
Capital At Non-Recourse
Region Risk (A) EBIT (B) Interest (C)
- ------------- ---------- -------- ------------
North America $ 399 $ 51 $--
Latin America 1,573 33 8
Asia Pacific 185 3 --
Europe 284 13 8
India 95 7 5
------ ---- ---
Total $2,536 $107 $21
====== ==== ===
For the Quarter Ended March 31, 2003
(Unaudited, $ Million)
As of For the Quarter Ended
December 31, 2003 March 31, 2003
----------------- -----------------------
Capital Non-Recourse
Region At Risk (A) EBIT (B) Interest (C)
- ------------- ----------- -------- ------------
North America $ 424 $59 $--
Latin America 1,575 27 7
Asia Pacific 180 2 --
Europe 309 4 --
India 91 -- --
------ --- ---
Total $2,579 $92 $ 7
====== === ===
Reconciliation of EBIT to Income from Continuing Operations for Quarter Ending:
3/31/2004 3/31/2003
--------- ---------
Total Global EBIT $107 $92
Interest Expense 38 26
Income Taxes 18 11
Minority Interest 2 5
Preference Units Distributions 4 --
Preferred Stock Dividends -- 5
---- ---
Income from Continuing Operations $ 45 $45
(A) Total capital at risk includes Global's gross investments, net of, equity
adjustments, non-recourse debt at the project level and including equity
commitment guarantees.
(B) Includes Global's share of net earnings, including interest expense and
income taxes, for investments accounted for under the equity method of
accounting.
(C) Non-recourse interest is interest expense paid on debt that is non-recourse
to Global.
Attachment 8
PUBLIC SERVICE ELECTRIC & GAS
Sales and Revenues to Customers
March 2004
(Unaudited, $ Million)
Electric Sales
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Three Change vs. Twelve Change vs.
Sales (millions kwh) Months Ended 2003 Months Ended 2003
- --------------------- ------------ ---------- ------------ ----------
Residential 3,145 1.8% 12,856 -2.7%
Commercial 5,662 5.3% 22,567 1.9%
Industrial 1,555 -0.5% 6,614 -2.1%
Total 3.3% -0.2%
Revenue (in millions)
- ---------------------
Residential $ 357 23.3% $ 1,406 7.7%
Commercial 407 -2.8% 1,822 -0.3%
Industrial 71 -32.5% 379 -20.2%
Total 2.6% 0.0%
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Gas Sold and Transported
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Three Change vs. Twelve Change vs.
Sales (millions therms) Months Ended 2003 Months Ended 2003
- ---------------------------- ------------ ---------- ------------ ----------
Residential Sales 732 -1.3% 1,530 0.5%
Commercial - Firm Sales 299 -1.7% 606 -0.5%
Commercial - Interr. & Cogen 13 27.6% 49 -6.9%
Industrial - Firm Sales 27 -3.0% 56 -4.7%
Inustrial - Interr. & Cogen 84 -29.9% 474 -8.5%
Total 1,154 -4.1% 2,716 -1.7%
Gas Transported 270 -39.8% 1,164 -10.5%
Revenue (in millions)
- ---------------------
Residential Sales $ 527 13.2% $ 1,110 24.2%
Commercial - Firm Sales 236 -6.1% 456 8.7%
Commercial - Interr. & Cogen 9 17.3% 33 15.7%
Industrial - Firm Sales 22 -8.0% 42 4.4%
Inustrial - Interr. & Cogen 58 -36.4% 294 8.1%
Total 852 1.4% 1,936 17.0%
Gas Transported 383 -5.7% 838 -0.1%
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Three Change vs. Twelve Change vs.
Weather Data Months Ended 2003 Months Ended 2003
- -------------------- ------------ ---------- ------------ ----------
Degree Days - Actual 2,776 -1.7% 5,112 -1.3%
Degree Days - Normal 2,634 4,867
THI Hours - Actual 3 -76.9% 14,805 -20.4%
THI Hours - Normal 28 14,878
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PUBLIC SERVICE ENTERPRISE GROUP
STATISTICAL MEASURES
(Unaudited)
March 31, March 31,
2004 2003
--------- ---------
Weighted Average Common Shares Outstanding (000's) - QTR
Basic 236,193 225,342
Diluted 238,852 225,714
Stock Price at End of Period $ 46.98 $ 36.69
Dividends Paid per Share of Common Stock - QTR $ 0.55 $ 0.54
Dividend Payout Ratio* 64.1% 82.8%
Dividend Yield 4.7% 5.9%
Price/Earnings Ratio* 13.7 14.1
Rate of Return on Average Common Equity* 16.5% 14.0%
Ratio of Earnings to Fixed Charges 2.63 3.01
Book Value per Common Share $ 23.26 $ 20.35
Market Price as a Percent of Book Value 202% 180%
Total Shareholder Return - QTR Ending 8.5% 16.1%
Total Shareholder Return - 12 Months Ending 34.6% -14.7%
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Generation by Fuel Type - Quarter Ending
----------------------------------------
March 31, 2004 March 31, 2003
-------------- --------------
Nuclear - NJ 38% 38%
Nuclear - PA 20% 20%
--- ---
Total Nuclear 58% 58%
Fossil - Coal - NJ 9% 14%
Fossil - Coal - PA 13% 11%
Fossil - Coal - CT 6% 6%
--- ---
Total Coal 28% 31%
Fossil - Oil & Natural Gas - NJ 9% 7%
Fossil - Oil & Natural Gas - NY 2% 0%
Fossil - Oil & Natural Gas - CT 3% 3%
Fossil - Oil & Natural Gas - Midwest 0% 0%
--- ---
Total Oil & Natural Gas 14% 10%
Fossil - Pumped Storage 0% 1%
--- ---
100% 100%
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*Calculation based on earnings from continuing operations for 12-month period
ending