Public Service Enterprise Group Incorporated · NYSE:PEG
Public Service Enterprise — Investor Presentation (January 2015)
13 slides from Public Service Enterprise's investor presentation, Jan 21, 2015
Slide 1: Forward-Looking Statement
Exhibit 99 Forward-Looking Statement Certain of the matters discussed in this report 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 “f
Slide 2: GAAP Disclaimer
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 associa
Slide 3: Operating Earnings Mix
Operating Earnings Mix Long term investment program has driven increased earnings contribution from stable, regulated business Power’sdiverse fuel mix Operating Earnings* Contribution by Subsidiary (%) and dispatch flexibility $2.60 - continues to generate $3.09 $3.12 $2.74 $2.44 $2.58 $2.75E earnin
Slide 4: PSEG – Year to Date 2014 Highlights
PSEG –Year to Date 2014 Highlights Operating Earnings YTD up 9% to $2.27 per share from $2.09 for YTD 2013 PSE&G on track to record double-digit growth in earnings on expanded capital investment program PSEG Power expected to earn at upper level of expectations for the full year Narrowed 2014 full–y
Slide 5: PSEG – 2014 Another Year of Growth
PSEG –2014 Another Year of Growth 2014 operating earnings guidance narrowed; forecast full-year at upper end of range, assuming normal weather and unit operations for rest of year $2.60 - $2.75E $2.58 $2.44 SEE SLIDE A FOR ITEMS EXCLUDED FROM INCOME FROM CONTINUING 14 OPERATIONS/NET INCOME TO RECONC
Slide 6: Susquehanna-Roseland transmission project
Susquehanna-Roseland consists of constructing 150 miles of 500kV circuit (46 miles in NJ) with two new 500kV GIS switching stations at Roseland and Hopatcong Project Through Expected Estimate Year-end 2013 In-service Date Up To* Phase 1 –Completed $790M $661M Phase 2 –June 2015 • PJM RTEP project b0
Slide 7: PSE&G's 2014 operating earnings
PSE&G’s2014 operating earnings to benefit from increased investment in transmission and on-going cost control PSE&G Operating Earnings* ($ Millions) *SEE SLIDE A FOR ITEMS EXCLUDED FROM NET INCOME TO RECONCILE TO OPERATING EARNINGS. E =ESTIMATE. DATA AS OF MARCH 31, 2014. 42
Slide 8: PSEG selected to operate Long Island Power Authority system
PSEG was selected to operate Long Island Power Authority’s (LIPA) electric transmission and distribution system for 12 years starting in 2014 Pursuantto the OperatingServicesAgreement(OSA),all expensesand capital costs to operate the system are pre-funded by LIPA and passed through to their customer
Slide 9: PSEG Power Delivering on priorities
PSEG Power Delivering on priorities • Maximize value of existing generating • OEM implemented and Operational plants through implementation of the achieving measures Excellence Operational Excellence Model (OEM) • Resource sharing program • Workforce engagement and development initiated • Deliver on
Slide 10: PJM Capacity Performance Proposal
PJM Capacity Performance Proposal: aims to increase electric supply reliability Capacityperformance (CP)proposal placesemphasison reliability given observedoutages during times of extreme weather stress and anticipated retirements; Imposition of higher penalty structure to encourageavailability Gene
Slide 11: Improving Operating Earnings
Improving Operating Earnings and increased contribution from PSE&G PSEG Operating Earnings $ Millions (except EPS) 2012 2013 2014E PSE&G $528 $612 $710 - $745 PSEG Power $663 $710 $575 - $610 Enterprise/Other $45 ($13) $35 - $40 Operating Earnings* $1,236 $1,309 $1,320 - $1,395 Operating EPS* $2.44
Slide 12: PSEG's longer-term outlook
PSEG’s longer-term outlook is influenced by Power’s hedge position and increased investment at PSE&G Segment EPS Drivers Sensitivities derived from typical annual market variability* 2015E 2016E Each $0.75/mcf Change in Natural Gas $0.00-$0.02 $0.07-$0.10 Each $2/MWh Change in Spark Spread $0.05 $0.
Slide 13: Items Excluded from Income to Reconcile to Operating Earnings
Items Excluded from Income from Continuing Operations/Net Income to Reconcile to Operating Earnings PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED For the Year Ended Reconciling Items, net of tax December 31, 2013 2012 2011 2010 2009 2008 Earnings Impact ($ Millions) (Unaudited) Operating Earnings $ 1
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