Public Service Enterprise Group Incorporated · NYSE:PEG
Public Service Enterprise — Investor Presentation (September 2015)
18 slides from Public Service Enterprise's investor presentation, Sep 29, 2015
Slide 1: Forward-Looking Statement
EXHIBIT 99 Forward-Looking Statement Certainof the matters discussedin this report about our and our subsidiaries'future performance, including,without limitation, future revenues,earnings,strategies,prospects, consequences and all other statementsthat are not purelyhistoricalconstitute“forward-look
Slide 2: GAAP Disclaimer
GAAP Disclaimer PSEG presents Operating Earnings and Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) in addition to its Income from Continuing Operations/Net Income reported in accordance with accounting principles generally accepted in the United States (GAAP). Oper
Slide 3: Delivering on commitments and realizing growth
Delivering on commitments and realizing growth • PSE&G:Mid-AtlanticReliabilityAward(13 th consecutiveyear),top ranked amongeastern electric and gas utilities inbusinesscustomer satisfaction Operational • PSEGPower: Recordoutput from combinedcycleunits Excellence • PSEG Long Island:Demonstrated manag
Slide 4: Power increased capital spending
PSEG Power increased capital spending by $1.6 billion with addition of new generating capacity focused on improving efficiency and reliability (Peach Bottom EPU, AGP, Solar) *BASED ON CURRENTLY KNOWN AND QUANTIFIABLE ENVIRONMENTAL REQUIREMENTS. E=ESTIMATE. 13
Slide 5: Operating Earnings
Operating Earnings Disciplined investment program and focus on operational excellence have supported growth Operating Earnings* Contribution by Subsidiary Power’sdiverse fuel mix and dispatch flexibility continue to ** generate strong earnings and free cash flow in low price environment ** PSE&G’s i
Slide 6: Power – Growing value by improving market rules and developing investment opportunities
Power –Growing value by improving market rules and developing investment opportunities Value Source Opportunities and Actions Taken • PJM’sCapacitymarket – 2014 limits on demandresponseand Improving rules August2015 Capacity Performance auction will better recognize • Demand response treatment at U.
Slide 7: PSE&G's 2015 operating earnings expected to benefit from increased investment in Transmission
PSE&G’s 2015 operating earnings expected to benefit from increased investment in Transmission PSE&G Operating Earnings* ($ Millions) $760 --$775E** $725 $612 2013 2014 2015 Guidance *SEE SLIDE A FOR ITEMS EXCLUDED FROM NET INCOME TO RECONCILE TO OPERATING EARNINGS. E =ESTIMATE. **UPDATED GUIDANCE ON
Slide 8: Power has generating assets in three competitive markets
PSEG Power has generating assets in three competitive markets • Assets located near load centers ISO • Low cost portfolio New York ISO New Fuel flexibility with gas cost England advantage Bethlehem Energy Center • Positioned to benefit (Albany) Bridgeport from volatility in real-time New Haven marke
Slide 9: Power will improve diversity and efficiency as we invest in the fleet
PSEG Power will improve diversity and efficiency as we invest in the fleet Objective Fuel Diversity Energy Produced 2015 2018 13,146 MW 12,600 MW 54 TWh 57 - 59 TWh • Maintain fuel diversity • Maintain load-serving capability • Maintain low cost structure • Environmental improvement • Peach Bottom (
Slide 10: Power initiatives result in continuing improvement in combined cycle heat rate
PSEG Power initiatives result in continuing improvement in combined cycle heat rate 7,800 7,700 7,600 AGP projected efficiency improvement 2015-2018 7,500 7,400 7,300 2018E* 7,200 2008 2009 2010 2011 2012 2013 2014 *The weighted average Combined Cycle Operating Heat Rate in 2018, with the addition o
Slide 11: Power developing 1,300 MW of new, efficient CCGT capacity in MD and NJ
PSEG Power developing 1,300 MW of new, efficient CCGT capacity in MD and NJ • Construction of 755 MW Keys Energy Center to begin this Fall on a new, natural gas fired power plant in Maryland (SWMAAC*) at an estimated cost of $825 to $875 million • Power cleared a new 540 MW CCGT unit, PJM Sewaren 7
Slide 12: Power's 2015 operating earnings maintain solid performance
Power’s 2015 operating earnings maintain solid performance Power Operating Earnings* ($ Millions) $710 $620 – $680E $642 2015 Observations • Increase in average hedge price for energy helps mitigate reset in capacity price and volume 2013 2014 2015 Guidance * SEE SLIDE A FOR ITEMS EXCLUDED FROM NET
Slide 13: 2015 Updated Guidance for Operating Income – by Subsidiary, and PSEG Power Adjusted EBITDA
PSEG 2015 Updated Guidance for Operating Income – by Subsidiary, and PSEG Power Adjusted EBITDA Anticipates Another Year of Growth in Operating Earnings $ millions (except EPS) 2015E 2014 PSE&G $760 - $775 $725 PSEG Power $620 - $680 $642 PSEG Enterprise/Other $40 - $45 $33 Operating Earnings* $1,42
Slide 14: Summary
PSEG Summary • Continued third year of anticipated positive earnings trend in 2015 with updated operating earnings guidance of $2.80 to $2.95 per share • Continued 5th straight year of expected double digit, 5-year growth in rate base • Anticipated high single digit earnings growth at PSE&G on a thr
Slide 15: Power's Adjusted EBITDA Q2 - 2015, YTD and Full-Year 2015 Guidance
PSEG Power’s Adjusted EBITDAQ2- 2015, YTD and Full-Year 2015 Guidance PSEG Power - Adjusted EBITDA* ThreeMonths Six Months (YTD) Full-Year 2015 Ended June 30, Ended June 30, Guidance ($ in millions) 2015 2014 2015 2014 Low High Operating Earnings** $110 $87 $388 $380 $620 $680 Add: Fossil Major Main
Slide 16: Items Excluded from Income from Continuing Operations/Net Income to Reconcile to Operating Earnings
Items Excluded from Income from Continuing Operations/Net Income to Reconcile to Operating Earnings PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED For the Year Ended Reconciling Items, net of tax December 31, 2014 2013 2012 2011 2010 2009 Earnings Impact ($ Millions) (Unaudited) Operating Earnings $ 1
Slide 17: Items Excluded from Net Income to Reconcile to Operating Earnings and Adjusted EBITDA
Items Excluded from Net Income to Reconcile to Operating Earnings and Adjusted EBITDA PLEASE SEE PAGE 3 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. B
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 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. C
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