Public Service Enterprise Group Incorporated · NYSE:PEG
Public Service Enterprise — Investor Presentation (September 2013)
19 slides from Public Service Enterprise's investor presentation, Sep 12, 2013
Slide 1: Forward Looking Statement
EXHIBIT 99 Forward Looking Statement Certain of the matters discussed in this report constitute “forward-looking statements” • any deterioration in our credit quality or the credit quality of our counterparties, within the meaning of the Private Securities Litigation Reform Act of 1995. Such includi
Slide 2: GAAP Disclaimer
GAAP Disclaimer PSEG presents Operating Earnings in addition to its Income from Continuing Operations/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
Slide 3: PSEG meeting the market's challenges with our strong platform of assets
PSEG meeting the market’s challenges with our strong platform of assets * Electric & Gas Delivery Regional Renewable and Transmission Wholesale Energy Investments PSE&G positioned PSEG Power’s PSEG Energy to meet NJ’s low-cost, base Holdings positioned energy policy and load and load to pursue attra
Slide 4: 61 local NJ towns and 5 counties support Energy Strong
61 local NJ towns and 5 counties support • 61 municipalities and five counties (Bergen, Hudson, Mercer, Passaic and Somerset) have approved resolutions in support of Energy Strong, PSE&G’s infrastructure proposal to improve and fortify its electric and gas distribution systems • The Energy Strong pr
Slide 5: PSE&G operating earnings forecast to grow at double digit rate through 2015
Where we’re going … PSE&G operating earnings are forecast to grow at double digit rate through 2015 PSEG Focus ($ millions, except as noted) 2008 2012 2015E • 2.4% (planned 1 ) • 0.8% (actual 2 ) • O&M Growth per year • 2.2% (forecast 3 ) • $6,800 • $9,000 • PSE&G Rate Base • $12,600 • $866 • $2,500
Slide 6: PSEG First Half 2013 Highlights
PSEG First Half 2013 H - ighlights Maintaining 2013 operating earnings guidance of $2.25 -$2.50 per share Strong earnings: First half 2013 earnings of $1.33 per share vs. $1.28 in year-ago period Power benefitting from higher capacity prices and asset location PSE&G seeing results from increased inv
Slide 7: 2013 Operating Earnings
2013 Operating Earnings* Investment in the Percent of Operating Earnings Contribution by Subsidiary regulated business has changed the $3.09 $3.12 $2.74 $2.44 $2.25 -$2.50E earnings mix Other Our 2009-2013 61% 47% investment focus has 52% brought us to a 50/50 Power 69% 76% mix for 2013 PSE&G’s 2013
Slide 8: Lower commodity costs and expiration of certain transition charges offset customer bills
Lower commodity costs and expiration of certain transition charges are expected to offset the impact to customer bills Typical Residential Annual Bill *FOR THE TYPICAL COMBINED ELECTRIC & GAS RESIDENTIAL CUSTOMER, 2018 BGS (INCLUDING TRANSMISSION) / BGSS, AS WELL AS SBC, WNC, RAC AND DISTRIBUTION RA
Slide 9: PSE&G's 2013 operating earnings benefiting from transmission growth
PSE&G’s 2013 operating earnings benefiting from transmission growth and cost containment initiatives PSE&G Operating Earnings* ($ Millions) $580 - $635E $528 2012 2013 Guidance *SEE SLIDE A FOR ITEMS EXCLUDED FROM INCOME FROM CONTINUING OPERATIONS/NET INCOME TO RECONCILE E= ESTIMATE TO OPERATING EAR
Slide 10: PSEG Energy Holdings
PSEG Energy Holdings These projects should produce steady results for PSEG PSEG Solar Source EBITDA 15 12 9 6 3 0 2010 2011 2012 2013 E E = ESTIMATE. …A STABLE, LOW-RISK PORTFOLIO 53
Slide 11: PSEG's locational advantage and gas basis
PSEG’s locational advantage and gas basis • Lower cost supplies of shale gas have been beneficial to both PSE&G customers and PSEG Power • Over 50% of our available pipeline capacity can access Albany market area supplies of shale gas • Power’s generating units sit in Shale Supply close proximity to
Slide 12: Reserve margins in PJM declining with retirements
Reserve margins in PJM declining with retirements Generation Deactivation Notifications Forecast Reserve Margin (PJM June 2013) 30% 25% 20% 15% 10% Source: PJM TEAC, 8/8/2013 5% 0% • PJM Pending Deactivation Requests of 6/1/2013 6/1/2014 6/1/2015 6/1/2016 6/1/2017 13,340 MW as of August 13, 2013 Res
Slide 13: Maintaining 2013 operating earnings guidance
Maintaining 2013 operating earnings guidance Based on our performance year-to-date, we expect full year operating earnings to be at the upper end of guidance, assuming normal weather and unit operations PSEG Operating Earnings $ Millions (except EPS) 2013E PSEG Power $535 - $600 PSE&G $580 - $635 PS
Slide 14: Capital investment options can result in as much as $5.4B of utility growth investment
Our capital investment options can result in as much as $5.4B of utility growth investment through 2015 2013 – 2015E Capital Investment Approved Programs Potential Opportunities ~$7.5B New Distribution New ~$6.5B ~$6.3B Transmission ~$1B ~$0.2B PSE&G PSE&G Growth Growth ~$4.2B $5.4B PSE&G Maintenanc
Slide 15: Opportunity for modest and sustainable dividend increases
Opportunity for modest and sustainable dividend increases consistent with stable regulated growth and cash generation outlook at PSEG Power Annual Dividend Per Share $1.42 $1.44 $1.40 $1.37 $1.37 $1.33 $1.25 $1.20 $1.14 $1.00 PSE&G EPS $0.80 $0.60 2009 2010 2011 2012 2013E E = ESTIMATE 99
Slide 16: PSEG Summary
PSEG Summary • Maintaining 2013 operatingearningsguidanceof $2.25 - $2.50 per share --based on financial results to date, we expect operating earnings for the full year to be at the upper end of our guidance range assuming normal weather and unit operations • Double digit operating earnings growth a
Slide 17: The full requirements BGS rate recognizes the forward PJM capacity market price
The full requirements BGS rate recognizes the forward PJM capacity market price Capacity Price per RPM Auction for PSEG Zone Capacity Price per BGS Tranche 2013-2014 $ 250 Three Year Average ($/MW-day) $195 2014-2015 $ 170 MW per Tranche (varies by EDC) 108 2015-2016 $ 166 Days per Year 365 Three Ye
Slide 18: Items Excluded from Income from Continuing Operations/Net Income to Reconcile to Operating Earnings
Items Excluded from Income from Continuing Operations/Net Income to Reconcile to Operating Earnings (Unaudited) For the Year Ended Pro-forma Adjustments, net of tax December 31, 2012 2011 2010 2009 2008 Earnings Impact ($ Millions) Gain (Loss) on Nuclear Decommissioning Trust (NDT) Fund Related Acti
Slide 19: Items Excluded from Income from Continuing Operations/Net 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 Reconciling Items Excluded from Income from Continuing Operations/Net Income to Compute Operating Earnings (Unaudited) Three Months Ended Six Months Ended
Public Service Enterprise Group — Investor Presentation (September 2013) on 6ix