Attached files
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| 8-K - FORM 8-K - PUBLIC SERVICE ELECTRIC & GAS CO | d324897d8k.htm |
 PSEG Public Service Enterprise Group RBC
Investor Meetings Texas-Kansas City
April 3-4, 2012
EXHIBIT 99 |
 2
Forward-Looking Statement
Readers are cautioned that statements contained in this presentation about our 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 the demand for or price of the capacity and energy that we
sell into wholesale electricity markets,
• adverse changes in energy industry law, policies and regulation, including market
structures and a potential shift away from competitive markets toward subsidized
market mechanisms, transmission planning and cost allocation rules, including rules regarding how transmission is planned and who is permitted
to build transmission in the future, 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 our operations,
• changes in nuclear regulation and/or general developments in the nuclear power
industry, including various impacts from any accidents or incidents experienced
at our facilities or by others in the industry, 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, or the credit quality of our
counterparties, including in our leveraged leases,
• 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,
• any inability to achieve or continue to sustain, our expected levels of operating
performance,
• increase in competition in energy markets in which we compete, •
challenges associated with recruitment and/or retention of a qualified workforce,
• adverse performance of our decommissioning and defined benefit plan trust fund
investments and changes in discount rates and funding requirements, and
• 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. |
 3
GAAP Disclaimer
PSEG presents Operating Earnings in addition to its Net Income reported in
accordance with generally accepted accounting principles
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 page in this presentation (page A)
includes 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.
|
 4
Our 2012 earnings guidance is influenced by a
decline in energy prices and increased investment
at PSE&G
2012 Operating Earnings Forecast
*See page A for Items excluded from Income from Continuing Operations to reconcile
to Operating Earnings; All periods reflect Texas in Discontinued
Operations. E=Estimate. 2011 Operating Earnings*
2012 Guidance
$2.25 to $2.50E
$2.74 |
 5
Guidance
$1.31
$1.13
PSEG’s 2012 earnings guidance of $2.25 to $2.50
reflects continued improvement at PSE&G and a
decline in margins at Power
$0.00
$0.20
$0.40
$0.60
$0.80
$1.00
$1.20
2011 Operating Earnings*
2012E Earnings Guidance*
PSE&G Earnings Per Share
2012 Assumptions
PSE&G
Growth in investments that provide
contemporaneous returns
Transmission
Distribution economic stimulus programs
Programs supporting NJ’s Energy Master
Plan
Power
Impacted by lower energy prices
Near term effects minimized by hedges in place
~400MW new Peaking capacity in-service mid
2012
Energy Holdings / Parent
Operating earnings guidance of $0.07 to $0.09
$0.00
$0.50
$1.00
$1.50
$2.00
2011 Operating Earnings*
2012E Earnings Guidance*
Power Earnings Per Share
Guidance
$1.10
$1.05
*See
page
A
for
Items
excluded
from
Income
from
Continuing
Operations
to
reconcile
to
Operating
Earnings;
2011
reflects
Texas
in
Discontinued
Operations. E = Estimate |
 6
PSEG 2012 Operating Earnings Guidance
-
By Subsidiary
$ millions (except EPS)
2012E
2011
PSEG Power
$575 –
$665
$ 845
PSE&G
$530 –
$560
$ 521
PSEG Energy Holdings/Parent
$35 –
$45
$ 23
Operating Earnings*
$1,140 –
$1,270
$ 1,389
Earnings per Share
$ 2.25 –
$ 2.50
$2.74
* See page A for Items excluded from Income from Continuing Operations to reconcile
to Operating Earnings. |
 Items
Excluded from Income from Continuing Operations to Reconcile to Operating
Earnings Please see Page 3 for an explanation of PSEG’s use of Operating
Earnings as a non-GAAP financial measure and how it differs from Net Income.
Page A
2011
2010
2009
2008
Earnings Impact ($ Millions)
Gain (Loss) on Nuclear Decommissioning Trust (NDT)
Fund Related Activity (PSEG Power)
50
$
46
$
9
$
(71)
$
Gain (Loss) on Mark-to-Market (MTM) (PSEG Power)
107
(1)
(11)
14
Lease Transaction Losses (Energy Holdings)
(173)
-
29
(490)
Market Transition Charge Refund (PSE&G)
-
(72)
-
-
Gain (Loss) on Asset Sales and Impairments (Energy Holdings)
34
-
-
(13)
Total Pro-forma adjustments
18
$
(27)
$
27
$
(560)
$
Fully Diluted Average Shares Outstanding (in Millions)
507
507
507
508
Per Share Impact (Diluted)
Gain (Loss) on NDT Fund Related Activity (PSEG Power)
0.10
$
0.09
$
0.02
$
(0.14)
$
Gain (Loss) on MTM (PSEG Power)
0.21
-
(0.02)
0.03
Lease Transaction Loss (Energy Holdings)
(0.34)
-
0.05
(0.96)
Market Transition Charge Refund (PSE&G)
-
(0.14)
-
-
Gain (Loss) on Asset Sales and Impairments (Energy Holdings)
0.06
-
-
(0.03)
Total Pro-forma adjustments
0.03
$
(0.05)
$
0.05
$
(1.10)
$
For the Year Ended
December 31,
PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED
Reconciling
Items
Excluded
from
Continuing
Operations
to
Compute
Operating
Earnings
(Unaudited)
Pro-forma Adjustments, net of tax |