PUBLIC SERVICE ENTERPRISE GROUP INC - FORM 8-K - EX-99.1

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8-K - FORM 8-K - PUBLIC SERVICE ENTERPRISE GROUP INC	d429044d8k.htm

Public Service Enterprise Group

PSEG Earnings Conference Call

Quarter 2017

July 28, 2017

EXHIBIT 99.1

Forward-Looking Statements

Certain of the matters discussed in this presentation about our and our subsidiaries’ future performance, including, without limitation, future revenues, earnings, strategies, prospects,

consequences and all other statements that are not purely historical constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such

forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ materially from those anticipated. Such statements are based on management’s beliefs

as well as assumptions made by and information currently available to management. 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. Factors that may cause actual results to differ

are often presented with the forward-looking statements themselves. Other factors that could cause actual results to differ materially from those contemplated in any forward-looking statements

made

herein

are

discussed

filings

make

with

the

United

States

Securities

and

Exchange

Commission

(SEC)

including

our

Annual

Report

Form

10-K

and

subsequent

reports

Form

10-Q and Form 8-K. These factors include, but are not limited to:

• fluctuations in wholesale power and natural gas markets, including the potential impacts on the economic viability of our generation units;

• our ability to obtain adequate fuel supply;

• any inability to manage our energy obligations with available supply;

• increases in competition in wholesale energy and capacity markets;

• changes in technology related to energy generation, distribution and consumption and customer usage patterns;

• economic downturns;

• third party credit risk relating to our sale of generation output and purchase of fuel;

• adverse performance of our decommissioning and defined benefit plan trust fund investments and changes in funding requirements;

• changes in state and federal legislation and regulations;

• the impact of pending rate case proceedings;

• regulatory, financial, environmental, health and safety risks associated with our ownership and operation of nuclear facilities;

• adverse changes in energy industry laws, policies and regulations, including market structures and transmission planning;

• changes in federal and state environmental regulations and enforcement;

• delays in receipt of, or an inability to receive, necessary licenses and permits;

• adverse outcomes of any legal, regulatory or other proceeding, settlement, investigation or claim applicable to us and/or the energy industry;

• changes in tax laws and regulations;

• the impact of our holding company structure on our ability to meet our corporate funding needs, service debt and pay dividends;

• lack of growth or slower growth in the number of customers or changes in customer demand;

• any inability of Power to meet its commitments under forward sale obligations;

• reliance on transmission facilities that we do not own or control and the impact on our ability to maintain adequate transmission capacity;

• any inability to successfully develop or construct generation, transmission and distribution projects;

• any

equipment

failures,

accidents,

severe

weather

events

other

incidents

that

impact

our

ability

provide

safe

and

reliable

service

our

customers;

• our inability to exercise control over the operations of generation facilities in which we do not maintain a controlling interest;

• any inability to maintain sufficient liquidity;

• any inability to realize anticipated tax benefits or retain tax credits;

• challenges associated with recruitment and/or retention of key executives and a qualified workforce;

• the impact of our covenants in our debt instruments on our operations; and

• the impact of acts of terrorism, cybersecurity attacks or intrusions.

All of the forward-looking statements made in this presentation are qualified by these cautionary statements and we cannot assure you that the results or developments anticipated by management

will be realized or even if realized, will have the expected consequences to, or effects on, us or our business, prospects, financial condition, results of operations or cash flows. Readers are

cautioned not to place undue reliance on these forward-looking statements in making any investment decision. Forward-looking statements made in this presentation apply only as of the date of

this presentation. While we may elect to update forward-looking statements from time to time, we specifically disclaim any obligation to do so, even in light of new information or future events,

unless otherwise required by applicable securities laws.

The forward-looking statements contained in this presentation are intended to qualify for the safe harbor provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of

the Securities Exchange Act of 1934, as amended.

GAAP Disclaimer

PSEG presents Operating Earnings and Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) in

addition to its Net Income reported in accordance with accounting principles generally accepted in the United States (GAAP).

Operating Earnings and Adjusted EBITDA are non-GAAP financial measures that differ from Net Income. Non-GAAP Operating

Earnings exclude the impact of returns (losses) associated with the Nuclear Decommissioning Trust (NDT), Mark-to-Market (MTM)

accounting and material one-time items. Non-GAAP Adjusted EBITDA excludes the same items as our non-GAAP Operating

Earnings measure as well as income tax expense, interest expense and depreciation and amortization. The last two slides in this

presentation (Slides A and B) include a list of items excluded from Net Income/(Loss) to reconcile to non-GAAP Operating

Earnings and non-GAAP Adjusted EBITDA with a reference to those slides included on each of the slides where the non-GAAP

information appears.

Management uses non-GAAP Operating Earnings in its internal analysis, and in communications with investors and analysts, as a

consistent measure for comparing PSEG’s financial performance to previous financial results. Management believes non-GAAP

Adjusted EBITDA is useful to investors and other users of our financial statements in evaluating operating performance because it

provides them with an additional tool to compare business performance across companies and across periods. Management also

believes that non-GAAP Adjusted EBITDA is widely used by investors to measure operating performance without regard to items

such as income tax expense, interest expense and depreciation and amortization, which can vary substantially from company to

company depending upon, among other things, the book value of assets, capital structure and whether assets were constructed or

acquired. Non-GAAP Adjusted EBITDA also allows investors and other users to assess the underlying financial performance of our

fleet before management’s decision to deploy capital. The presentation of non-GAAP Operating Earnings and non-GAAP Adjusted

EBITDA is intended to complement, and should not be considered an alternative to, the presentation of Net Income, which is an

indicator of financial performance determined in accordance with GAAP. In addition, non-GAAP Operating Earnings and non-GAAP

Adjusted EBITDA as presented in this release may not be comparable to similarly titled measures used by other companies.

Due to the forward looking nature of non-GAAP Operating Earnings and non-GAAP Adjusted EBITDA guidance, PSEG is unable to

reconcile these non-GAAP financial measures to the most directly comparable GAAP financial measure. Management is unable to

project certain reconciling items, in particular MTM and NDT gains (losses), for future periods due to market volatility.

These materials and other financial releases can be found on the PSEG website at www.pseg.com, under the Investors tab. From time to time, PSEG, PSE&G and

PSEG Power release important information via postings on their corporate website at http://investor.pseg.com. Investors and other interested parties are encouraged to

visit the corporate website to review new postings. The “email alerts” link at http://investor.pseg.com

may be used to enroll to receive automatic email alerts and/or

really simple syndication (RSS) feeds regarding new postings at http://investor.pseg.com/rss.

PSEG

2017 Q2 Review

Ralph Izzo

Chairman, President and Chief Executive Officer

Second Quarter Highlights

Net Income of $0.22 vs. Net Income of $0.37 per share in Q2 2016, reflecting Hudson & Mercer

retirements

Non-GAAP Operating Earnings* of $0.62 vs. $0.57 per share in Q2 2016

PSE&G

achieved

17%

growth

earnings

per

over

2016

–

supported

increased

investment in transmission and distribution, and cost containment

PSEG Power results aided by continued cost control

Operational Excellence

Nuclear

fleet

achieved

capacity

factor

89.6%

for

and

94.8%

for

the

first-half

2017

PSE&G named Smart Electric Power Alliance’s (SEPA) 2017 Investor Owned Utility of the Year,

recognizing PSE&G’s Solar 4 All program and its leadership in landfill and brownfield solar development

Disciplined Capital Investment –

Producing Results

PSEG to invest ~$4.7 billion in 2017, consisting of ~$3.4 billion at PSE&G and ~$1.2 billion

at PSEG Power

Regulatory & Policy Focus: New Jersey Board of Public Utilities (BPU) actions support infrastructure

investment; Energy Efficiency agreement in principle reached; $2.7 billion, 5-year Gas System

Modernization Program (GSMP) extension and expansion filing

Hudson and Mercer coal/gas generating stations retired on June 1

PSEG

2017

–

Solid

financial

results

both

businesses

* See Slides A and B for Items excluded from Net Income to reconcile to Operating Earnings (non-GAAP).

PSEG Q2 Summary –

GAAP EPS decline reflects Hudson

& Mercer retirements

Quarter ended June 30

*See Slide A for Items excluded from Net Income to reconcile to Operating Earnings (non-GAAP).

$ millions (except EPS)

2017

2016

Change

Net Income

$ 109

$ 187

$ (78)

Reconciling Items

207

102

105

Operating Earnings (non-GAAP)*

$ 316

$ 289

$ 27

EPS from Net Income

$ 0.22

$ 0.37

$ (0.15)

EPS from Operating Earnings (non-GAAP)*

$ 0.62

$ 0.57

$ 0.05

Non-GAAP EPS results up 9%

PSEG First Half Summary –

GAAP EPS decline reflects

Hudson & Mercer June 1 retirements

Six Months ended June 30

*See Slide A for Items excluded from Net Income to reconcile to Operating Earnings (non-GAAP).

$ millions (except EPS)

2017

2016

Change

Net Income

$ 223

$ 658

$ (435)

Reconciling Items

559

465

Operating Earnings (non-GAAP)*

$ 782

$ 752

$ 30

EPS from Net Income

$ 0.44

$ 1.30

$ (0.86)

EPS from Operating Earnings (non-GAAP)*

$ 1.54

$ 1.48

$ 0.06

Non-GAAP EPS results up 4%

PSE&G –

BPU Proposal to Incentivize Investment

Infrastructure Investment Program (IIP)

The BPU on June 30 proposed changes in regulation that would:

Encourage and support accelerated utility investment

Support system safety, reliability, resiliency and sustained economic growth in NJ

Support accelerated recovery on qualifying investments, and

Allow utility companies the option to seek approval for investment programs

extending up to five years (with a base rate case within five years)

The BPU is receiving comments on the proposal, and a final order is anticipated by year-end

Growth in utility infrastructure investment drives increased growth

in regulated earnings contribution

$2.80 -

$3.00E

PSEG -

Maintaining 2017 Non-GAAP Earnings Guidance

$2.90

Non-GAAP Operating Earnings*

Contribution by Subsidiary and 2017 Guidance

* See Slide A for Items excluded from Net Income to reconcile to Operating Earnings (non-GAAP).

** Based

the

mid-point

2017

non-GAAP

Operating

Earnings

guidance

$2.80

$3.00

per

share.

Estimate.

2016

2017E**

PSE&G

Power

Enterprise/Other

60%

66%

32%

35%

PSEG

2017 Q2 Operating Company Review

Dan Cregg

EVP and Chief Financial Officer

PSEG –

Q2 Results by Subsidiary

GAAP Net Income/(Loss)

2017

2016

Change

PSE&G

$ 0.41

$ 0.35

$ 0.06

PSEG Power

$ (0.19)

$ (0.02)

$ (0.17)

PSEG Enterprise/Other

$ 0.00

$ 0.04

$ (0.04)

Total PSEG

$ 0.22

$ 0.37

$ (0.15)

Non-GAAP Operating Earnings*

2017

2016

Change

PSE&G

$ 0.41

$ 0.35

$ 0.06

PSEG Power

$ 0.19

$ 0.18

$ 0.01

PSEG Enterprise/Other

$ 0.02

$ 0.04

$ (0.02)

Total PSEG*

$ 0.62

$ 0.57

$ 0.05

*See Slides A and B for Items excluded from Net Income/(Loss) to reconcile to Operating Earnings (non-GAAP) for PSEG, PSEG Power and PSEG

Enterprise/Other.

PSEG Q2 EPS Summary –

Quarter ended June 30

$0.37

$0.57

0.06

0.01

$0.62

$0.00

$0.10

$0.20

$0.30

$0.40

$0.50

$0.60

$0.70

$0.80

PSEG EPS Reconciliation –

Q2 2017 versus Q2 2016

* See Slide A for Items excluded from Net Income to reconcile to Operating Earnings (non-GAAP).

Capacity 0.01

Higher

Volume 0.01

Recontracting

(0.03)

O&M 0.02

Transmission

0.04

Electric and

Gas Margin

0.02

D&A (0.01)

Other 0.01

Q2 2017

Net

Income

Q2 2016

Net

Income

PSEG

Power

PSE&G

Enterprise/

Other

Q2 2016

Operating

Earnings

(non-GAAP)*

Q2 2017

Operating

Earnings

(non-GAAP)*

Interest

Expense

and

Taxes

(0.02)

$0.22

Utility investment and cost control drove Q2 results

PSEG –

First Half Results by Subsidiary

GAAP Net Income/(Loss)

2017

2016

Change

PSE&G

$ 1.00

$ 0.87

$ 0.13

PSEG Power

$ (0.53)

$ 0.36

$ (0.89)

PSEG Enterprise/Other

$ (0.03)

$ 0.07

$ (0.10)

Total PSEG

$ 0.44

$ 1.30

$ (0.86)

Non-GAAP Operating Earnings*

2017

2016

Change

PSE&G

$ 1.00

$ 0.87

$ 0.13

PSEG Power

$ 0.49

$ 0.54

$ (0.05)

PSEG Enterprise/Other

$ 0.05

$ 0.07

$ (0.02)

Total PSEG*

$ 1.54

$ 1.48

$ 0.06

PSEG First Half EPS Summary –

Six months ended June 30

*See Slides A and B for Items excluded from Net Income/(Loss) to reconcile to Operating Earnings (non-GAAP) for PSEG, PSEG Power and PSEG

Enterprise/Other.

PSEG EPS Reconciliation –

First Half 2017 versus First Half 2016

* See Slide A for Items excluded from Net Income to reconcile to Operating Earnings (non-GAAP).

Capacity 0.01

Higher Gas

Send-out 0.02

Recontracting (0.13)

O&M 0.05

Transmission 0.07

Electric and Gas

Margin 0.05

Distribution

O&M 0.02

Distribution

D&A (0.02)

Taxes & Other 0.01

YTD 2017

Net

Income

YTD 2016

Net

Income

PSEG

Power

PSE&G

Enterprise/

Other

YTD 2016

Operating

Earnings

(non-GAAP)*

YTD 2017

Operating

Earnings

(non-GAAP)*

Interest

Expense,

Taxes

and Other

Utility investment and cost control drove year-to-date growth

$1.30

$1.48

0.13

$1.54

(0.05)

(0.02)

$0.00

$0.50

$1.00

$1.50

$2.00

$0.44

PSE&G

2017 Q2 Review

$0.35

0.06

0.00

$0.41

0.00

0.10

0.20

0.30

0.40

0.50

0.60

0.70

PSE&G EPS Reconciliation –

Q2 2017

versus Q2 2016

Q2 2017

Net Income

Q2 2016

Net Income

Transmission

0.04

Electric

and Gas

Margin 0.02

D&A (0.01)

Other 0.01

Earnings per share rose by 17% vs. Q2 2016,

reflecting infrastructure investment

PSE&G –

Q2 2017 weather had minor impact on EPS

2017 vs. 2016 vs. Normal

PSE&G Monthly Weather Summary

279

174

365

170

359

128

100

200

300

400

500

2017

2016

Normal

358

851

3,160

129

1,164

2,497

166

877

3,019

500

1,000

1,500

2,000

2,500

3,000

3,500

2017

2016

Normal

April

May

June

April

May

June

Monthly Temperature Humidity Index (THI)

Monthly Heating Degree Days (HDD)

Q2 2017 heating degree days were

~12% lower than Q2 2016

and ~6% lower than normal

Q2 2017 temperature-humidity index

was ~15% higher than Q2 2016

and ~8% higher than normal

PSE&G –

Regulatory Agreement/Filing Support Long-term Objectives

PSE&G’s recent filing to extend its Gas System Modernization Program (GSMP)

and an agreement reached on its proposed Energy Efficiency investment program

reinforce PSE&G’s commitment to provide clean, reliable energy for its customers

Gas System Modernization Program II

In July, PSE&G filed for a 5-year extension of the GSMP which would accelerate the pace of replacement

of its aging cast iron and unprotected steel mains and associated service. PSE&G is proposing to invest

approximately $540 million per year, or up to $2.7 billion, over the 5-year program beginning in 2019. The

filing is consistent with the draft regulations that the BPU issued in June regarding Infrastructure

Investment Programs.

Energy Efficiency

In July, PSE&G reached an agreement in principle with BPU Staff and Rate Counsel related to its

proposed request to extend its investment in Energy Efficiency. Under the agreement, PSE&G would

invest $69 million in energy efficiency equipment for hospitals, multi-family housing and other sectors and

a residential energy efficiency offering for smart thermostats and data analytics. The agreement

represents more than 90% of PSE&G’s request.

PSE&G –

Q2 Operating Highlights

Filed for a 5-year extension and expansion of our Gas System Modernization Program

Agreement in principle reached on PSE&G’s Energy Efficiency filing provides a ~$69 million investment

PSE&G set to file its distribution base rate case with the BPU no later than November 1, 2017

Operations

Regulatory and Market

Environment

PSE&G’s Q2 2017 earnings increased by $0.06 or 17% to $0.41 per share

PSE&G is on-track to meet its 2017 plan to invest approximately ~$3.4 billion to upgrade and expand

Transmission & Distribution infrastructure

PSE&G’s

2017

Net

Income

guidance

range

remains

unchanged

$945

$985

million

Financial

Total electric sales were flat on a weather normalized basis for the trailing 12 months ended June 30

Total firm gas sales were slightly higher at 0.4% for the trailing 12 months ended June 30 due to

increased commercial sales

The first half of 2017 was the 3rd mildest in New Jersey state records with HDD ~9% below normal

and ~2% lower than first-half 2016

SEPA named PSE&G its 2017 Investor Owned Utility of the Year, recognizing its leadership in utility-scale

solar development on landfill and brownfield sites

PSEG Power

2017 Q2 Review

$0.18

0.02

$0.19

$(0.02)

(0.01)

$(0.19)

-0.20

-0.10

0.00

0.10

0.20

0.30

Capacity 0.01

Higher Volume 0.01

Recontracting/

Lower Prices (0.03)

PSEG Power EPS Reconciliation –

Q2 2017 versus Q2 2016

O&M

* See Slide B for Items excluded from Net Income/(Loss) to reconcile to non-GAAP Operating Earnings for PSEG Power.

Q2 2016

Operating

Earnings*

(non-GAAP)

Q2 2017

Operating

Earnings*

(non-GAAP)

Fewer outage-related days and cost control offset lower prices

Q2 2017

Net (Loss)

Q2 2016

Net (Loss)

PSEG Power –

Q2 Generation increases 4%

6,983

7,566

912

1,360

4,551

4,025

5,000

10,000

15,000

2016

2017

Total Nuclear

Total Coal**

Natural Gas

* Excludes solar and Kalaeloa. ** Includes figures for Pumped Storage.

PSEG Power –

Generation (GWh)*

12,446

12,951

PSEG Power –

Capacity Factors (%)

Quarter ended

June 30

2016

2017

Combined

Cycle

PJM and NY

62.3%

55.3%

Coal**

57.0%

81.3%

0.0%

0.9%

Nuclear

82.7%

89.6%

Quarter ended

June 30

($ millions)

2016

2017

Gas

$ 64

$ 83

Coal

$ 22

$ 31

Total Fossil

$ 86

$ 114

Nuclear

$ 48

$ 47

Total Fuel

Cost

$ 134

$ 161

Total

Generation

(GWh)

12,446

12,951

$ / MWh

10.77

12.43

PSEG Power –

Fuel Costs

PSEG Power –

First Half Generation in-line with year-ago

Total Nuclear

Total Coal**

Natural Gas

* Excludes solar and Kalaeloa. ** Includes figures for Pumped Storage.

PSEG Power –

Generation (GWh)*

25,646

25,786

PSEG Power –

Capacity Factors (%)

PSEG Power –

Fuel Costs

15,402

15,921

1,939

2,794

8,305

7,071

5,000

10,000

15,000

20,000

25,000

30,000

2016

2017

Six months

ended June 30

($ millions)

2016

2017

Gas

$ 131

$ 162

Coal

$ 49

$ 65

Total Fossil

$ 180

$ 227

Nuclear

$ 105

$ 101

Total Fuel

Cost

$ 285

$ 328

Total

Generation

(GWh

)

25,646

25,786

$ / MWh

11.11

12.72

Six months

ended June 30

2016

2017

Combined

Cycle

PJM and NY

57.0%

48.5%

Coal**

57.9%

82.5%

3.0%

5.2%

Nuclear

91.2%

94.8%

PSEG Power –

Gross Margin Performance

$10

$20

$30

$40

$50

2015

2016

2017

$36

Quarter ended June 30

PS Zone pricing improved over Q2 2016

Baffle bolt replacement outages completed at both Salem units

Capacity revenues were up slightly vs. Q2 2016 reflecting step-up in New England

capacity pricing to $232 MW/day

Regional spark spreads compressed in the quarter

Q2 2017 had 46 nuclear refueling outage days vs. 76 outage days in Q2 2016

Regional Performance

Region

Q2 Gross

Margin ($M)

Q2 2017 Performance

PJM

$431

Higher generation offset by

recontracting at lower prices

New

England

$19

Higher generation and prices

New York

$17

Higher generation and market prices

offset by lower hedges

PSEG Power Gross Margin ($/MWh)

$40

$39

Hedging Update…

Contracted Energy*

* HEDGE

PERCENTAGES

AND

PRICES

JUNE

30,

2017.

REVENUES

FULL

REQUIREMENT

LOAD

DEALS

BASED

CONTRACT

PRICE,

INCLUDING

RENEWABLE

ENERGY

CREDITS,

ANCILLARY,

AND

TRANSMISSION

COMPONENTS

BUT

EXCLUDING

CAPACITY.

HEDGES

INCLUDE

POSITIONS

WITH

MTM

ACCOUNTING

TREATMENT

AND

OPTIONS.

Jul-Dec

2017

2018

2019

Volume TWh

Base Load

% Hedged

100%

40-45%

(Nuclear and Base Load Coal)

Price $/MWh

$46

$41

Volume TWh

Intermediate, Combined Cycle,

% Hedged

60-65%

Peaking

Price $/MWh

$46

$ -

Volume TWh

20-25

52-54

58-60

Total

% Hedged

85-90%

65-70%

25-30%

Price $/MWh

$46

$41

PSEG Power –

Q2 Operating Highlights

Q2 output up 4% with shorter Salem 2 refueling outage versus the extended Salem 1 outage in Q2 2016;

baffle bolt inspection and replacement addressed at Salem 2 this Spring

Nuclear fleet achieved average capacity factor of 89.6% in Q2, producing 7.6 TWh of energy

CCGT fleet capacity factor was 55.3% versus 62.3% in Q2 2016, CCGT availability remained strong at

~90% and produced 4.0 TWh of energy; Coal capacity factor up in PA on higher market demand, coal

fleet produced 1.4 TWh of energy

Operations

Regulatory and Market

Environment

Financial

The 2020/2021 RPM auction (with 100% Capacity Performance requirement) resulted in a higher

average price of $174 MW/day for 7,800 MW that cleared the auction

2017 expected generation output on track for 49-50 TWh; BGS load projected at 11 TWh

Recent court actions in New York and Illinois affirm state initiatives supporting Zero Emissions Credits

Construction on schedule and on budget at Keys and Sewaren 7 for targeted 2018 in-service;

Bridgeport Harbor 5 progressing on schedule for targeted 2019 operations

Power’s total debt as a percentage of capitalization at June 30 was 31%

Power’s

2017

non-GAAP

Operating

Earnings

guidance

range

remains

unchanged

$435

$510

million;

non-GAAP Adjusted EBITDA guidance for 2017 remains unchanged at $1,080 to $1,210 million

PSEG

PSEG Financial Highlights

PSE&G earnings forecast to grow 8.5% to comprise 66% of PSEG’s 2017

non-GAAP Operating Earnings

PSEG’s 5-Year capital spending forecast of $15 billion over 2017 –

2021

to be invested in PSE&G (82%) and Power (18%)

PSE&G successfully executing regulatory/policy initiatives supporting

its 5-year, 7 -

9% annual growth in rate base

PSEG Power’s $2 billion investment in new generation, located in PJM

and New England, will improve fleet efficiency and geographic diversity

Moody’s upgraded PSEG’s senior unsecured credit rating to Baa1,

the

rating outlook is Stable; subsidiary company ratings were affirmed

Increased 2017 indicative common dividend by 4.9% to $1.72 per share

Financial position remains strong:

Cash from Power and increasing cash flow from operations at PSE&G supports

dividend growth and funds capital spending program without the need to issue equity

Debt as a percentage of capitalization was 49% at June 30

Reiterating

2017

non-GAAP

Operating

Earnings

guidance

$2.80

$3.00

per

PSEG 2017 Guidance -

By Subsidiary

$ millions (except EPS)

2017E

2016

PSE&G (Net Income)

$945 -

$985

$889

PSEG Power

$435 -

$510

$514

PSEG Enterprise/Other

$35 -

$35

$72

Operating Earnings (non-GAAP)*

$1,415 -

$1,530

$1,475

Operating EPS (non-GAAP)*

$2.80 -

$3.00E

$2.90

Segment Operating Earnings Guidance and Prior Results

(non-GAAP, except as noted)*

$ millions

2017E

2016

PSEG Power

$1,080 -

$1,210

$1,201

PSEG Power Adjusted EBITDA (non-GAAP)*

* See Slide A for Items excluded from Net Income to reconcile to Operating Earnings (non-GAAP) and Slide B for Items excluded from Net Income/(Loss) to reconcile to Operating

Earnings (non-GAAP) and Adjusted EBITDA (non-GAAP). E = Estimate.

PSEG Liquidity as of June 30, 2017

Reconciliation of Non-GAAP Operating Earnings

Please see Slide 2 for an explanation of PSEG’s use of Operating Earnings as a non-GAAP financial measure

and how it differs from Net Income.

Reconciliation of Non-GAAP Operating Earnings and Non-GAAP

Adjusted EBITDA

Please see Slide 2 for an explanation of PSEG’s use of Operating Earnings and Adjusted EBITDA as non-GAAP financial measures and

how they differ from Net Income/(Loss).

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