Attached files
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| 8-K - FORM 8-K - PUBLIC SERVICE ELECTRIC & GAS CO | d8k.htm |
 Forward-Looking Statement
Readers are cautioned that statements contained in this presentation about our and our
subsidiaries' future performance, including future revenues, earnings, strategies,
prospects, consequences 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.
When
used
herein,
the
words
“anticipate”,
“intend”,
“estimate”,
“believe”,
“expect”,
“plan”,
“should”,
“hypothetical”,
“potential”,
“forecast”,
“project”, variations of such words and similar expressions are intended to
identify forward-looking statements. Although we believe that our expectations are based on
reasonable assumptions, they are subject to risks and uncertainties and we can give no
assurance they will be achieved. The results or developments projected or predicted in
these
statements
may
differ
materially
from
what
may
actually
occur.
Factors
which
could
cause
results
or
events
to
differ
from
current
expectations
include,
but
are
not
limited
to:
•
Adverse changes in energy industry law, policies and regulation, including market
structures, transmission planning and rules, and reliability standards.
•
Any inability of our transmission and distribution businesses to obtain adequate and
timely rate relief and regulatory approvals from federal and state regulators.
•
Changes in federal and state environmental regulations that could increase our costs or
limit operations of our generating units. •
Changes in nuclear regulation and/or developments in the nuclear power industry
generally that could limit operations of our nuclear generating units.
•
Actions
or
activities
at
one
of
our
nuclear
units
located
on
a
multi-unit
site
that
might
adversely
affect
our
ability
to
continue
to
operate
that
unit
or
other
units
located
at the same site.
•
Any inability to balance our energy obligations, available supply and trading
risks. •
Any deterioration in our credit quality.
•
Availability of capital and credit at commercially reasonable terms and conditions and
our ability to meet cash needs. •
Any
inability
to
realize
anticipated
tax
benefits
or
retain
tax
credits.
•
Changes in the cost of, or interruption in the supply of, fuel and other commodities
necessary to the operation of our generating units. •
Delays in receipt of necessary permits and approvals for our construction and
development activities. •
Delays or unforeseen cost escalations in our construction and development activities.
•
Increase in competition in energy markets in which we compete.
•
Adverse performance of our decommissioning and defined benefit plan trust fund
investments and changes in discount rates and funding requirements.
•
Changes in technology and customer usage patterns.
For further information, please refer to our Annual Report on Form 10-K, including
Item 1A. Risk Factors, 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 presentation. 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 internal estimates change, unless otherwise required
by applicable securities laws. 2
Exhibit 99 |
 GAAP
Disclaimer PSEG presents Operating Earnings in addition to its Net Income
reported in accordance with accounting principles generally accepted in the
United States (GAAP). Operating Earnings is a non-GAAP financial measure
that differs from Net Income because it excludes gains or losses associated with
Nuclear Decommissioning Trust (NDT), Mark-to-Market (MTM) accounting,
and other material one-time items. PSEG presents Operating Earnings because
management believes that it is appropriate for investors to consider results
excluding these items in addition to the results reported in accordance with
GAAP. PSEG believes that the non-GAAP financial measure of Operating
Earnings provides a consistent and comparable measure of performance of its
businesses to help shareholders understand performance trends.
This
information is not
intended to be viewed as an alternative to GAAP information.
The last two slides in this presentation include a list of items
excluded from
Income from Continuing Operations to reconcile to Operating Earnings, with a
reference to that slide included on each of the slides where the
non-GAAP
information appears.
3 |
   Investment programs, hedge profile
and cost control support 2010 outlook
$3.12
$3.00 - $3.25
2009 Operating Earnings*
2010 Guidance
*
See
page
64
for
Items
excluded
from
Income
from
Continuing
Operations
to
reconcile
to
Operating
Earnings.
9 |
 PSEG
2010 Operating Earnings Guidance -
By Subsidiary
$ 3.12
$ 1,579
$ 10
$ 43
$ 321
$ 1,205
2009A*
$ 3.00 –
$ 3.25
$ 1,520 –
$ 1,645
$ 5 –
$15
$ 30 –
$ 40
$ 425 –
$ 455
$ 1,060 –
$ 1,135
2010E
Enterprise
Earnings per Share
Operating Earnings*
PSEG Energy Holdings
PSE&G
PSEG Power
$ millions (except EPS)
*
See
Page
64
for
Items
excluded
from
Income
from
Continuing
Operations
to
reconcile
to
Operating
Earnings.
18 |
 PSEG
is responding to investors’ questions
PSE&G’s capital programs have nominal impact on rates
Stable supply costs provide room for regulatory support of capital programs
What is the impact
on customer from
capital programs?
Strong
PSEG
cash
flow
and
approved
PSE&G
capital
structure
support
financing
requirements
Do you need equity?
Anticipated
narrowing
spread
between
market
price
and
embedded
energy
cost
in
BGS
should
mitigate
risk
Physical assets provide optionality
What is the
impact of migration?
103-year
history
of
paying
annual
common
dividend;
modest
payout
ratio
and
strong
balance
sheet
provide
support
–
7
th
consecutive
annual
increase
Dividend history?
Multi-year hedging through participation in full-requirements auctions
Asset balance dampens relative fuel price volatility
Capacity markets provide stability
What’s the impact of
commodity volatility?
Environmentally advantaged
Federal and State Policy initiatives support capital plans
How is PSEG affected
by policy changes?
PSEG Position
Investors’
Questions
21 |
 Items
Excluded from Income from Continuing Operations to Reconcile to Operating
Earnings Please see Page 3 for an explanation of PSEG’s use of Operating
Earnings as a non-GAAP financial measure and how it differs from Net
Income. Pro-forma Adjustments, net of tax
2009
2008
2007
Earnings Impact ($ Millions)
Gain (Loss) on Nuclear Decommissioning Trust (NDT)
Fund Related Activity
9
$
(71)
$
12
$
Gain (Loss) on Mark-to-Market (MTM)
(25)
16
10
Lease Transaction Reserves
-
(490)
-
Net Reversal of Lease Transaction Reserves
29
-
-
Asset Sales and Impairments
-
(13)
(32)
Premium on Bond Redemption
-
(1)
(28)
Total Pro-forma adjustments
13
$
(559)
$
(38)
$
Fully Diluted Average Shares Outstanding (in Millions)
507
508
509
Per Share Impact (Diluted)
Gain (Loss) on Nuclear Decommissioning Trust (NDT)
Fund Related Activity
0.02
$
(0.14)
$
0.02
$
Gain (Loss) on Mark-to-Market (MTM)
(0.05)
0.03
0.02
Lease Transaction Reserves
-
(0.96)
-
Net Reversal of Lease Transaction Reserves
0.05
-
-
Asset Impairments
-
(0.03)
(0.06)
Premium on Bond Redemption
-
-
(0.06)
Total Pro-forma adjustments
0.02
$
(1.10)
$
(0.08)
$
PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED
For the Twelve Months Ended
December 31,
Reconciling Items Excluded from Continuing Operations to Compute Operating Earnings
(Unaudited)
64 |