Public Service Enterprise Group Incorporated · NYSE:PEG

Public Service Enterprise — Investor Presentation (May 2015)

20 slides from Public Service Enterprise's investor presentation, May 12, 2015

  1. Slide 1: Forward-Looking Statement

    Forward-Looking Statement EXHIBIT 99 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

  2. 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

  3. Slide 3: Operating Earnings

    Operating Earnings Disciplined investment program and focus on operational excellence have supported growth Operating Earnings* Contribution by Subsidiary Power’sdiversefuel mix and dispatch flexibility continue to generate strong ** earnings and free cash flow in low price environment PSE&G’sinvest

  4. Slide 4: PSE&G has successfully worked with regulators to develop multiple solutions for New Jersey's goals

    PSE&G has successfully worked with regulators to developmultiple solutions for NewJersey’s energy and economic development goals RENEWABLES ENERGY EFFICIENCY DISTRIBUTION creative solutions to install assisting customers with improving electric and gas solar generation controlling energy usage deliv

  5. Slide 5: Extension of PSE&G's award winning Energy Efficiency program

    Extension of PSE&G’s award winning Energy Efficiency program • Energy Efficiency Extension II approved by the BPU in April 2015 will extend the investment and time frame for three previously approved programs already in the marketplace, allowing PSE&G to factor in lessons learned and balance policy

  6. Slide 6: 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 *SEE SLIDE A FOR ITEMS EXCLUDED FROM NET INCOME TO RECONCILE TO OPERATING EARNINGS. E =ESTIMATE. DATA AS OF MARCH 2, 2015. 37

  7. Slide 7: PSEG Solar Source owns ~123 MW of solar facilities

    PSEG Solar Source owns ~123 MW of solar facilities* with long term contracted revenues Hackettstown (Mars) Queen Creek Newman New Jersey (2 MW) Arizona (25 MW) Texas (13 MW) COD September 2009 COD October 2012 COD December 2014 Thin film panels –fixed tilt Polycrystalline -single axis Polycrystallin

  8. Slide 8: Power's 2015 operating earnings maintain solid performance

    Power’s 2015 operating earnings maintain solid performance Power Operating Earnings* ($ Millions) 2015 Observations • 75-80% hedged at $52/MWh • Increase in average hedge price for energy helps mitigate reset in capacity price and volume * SEE SLIDE A FOR ITEMS EXCLUDED FROM NET INCOME TO RECONCILE

  9. Slide 9: Market Review: Winter Z6 gas prices retain seasonal volatility

    Market Review:Winter Z6 gas prices retain seasonalvolatility; spark spreadshave continued to be robust in PJM 2015 YTD Z6 2015-2018 Z6 PJM West vs. PS Zone Spark Spreads (2013-2018) FORWARDS AS OF APRIL 30, 2015 70

  10. Slide 10: Regulatory Framework: Significant reforms already implemented and new rules being promulgated

    RegulatoryFramework:Significantreforms alreadyimplemented and new rules being promulgatedto improveenergyand capacitymarket designs ISSUE /POLICY OUTCOME CAPACITY • Higher payments for enhanced reliability (Capacity Performance) DEMAND RESPONSE • Stricter rules for eligibility and deployment PJM RUL

  11. Slide 11: PJM Capacity Performance Proposal: aims to increase electric supply reliability

    PJMCapacityPerformanceProposal:aims to increaseelectric supplyreliability • Capacityperformance(CP)proposalplacesemphasison reliability, given observed outages during times of extreme weather stress and anticipated retirements; Imposition of higher penalty structure and enhanced opportunities for co

  12. Slide 12: Hedging strategy: designed to protect gross margin while leveraging the portfolio

    Hedgingstrategy:designedto protect grossmargin while leveragingthe portfolio Apr-Dec 2015 2016 2017 Volume TWh 26 37 37 Base Load % Hedged 100% 80-85% 40-45% (Nuclear and Base Load Coal) Price $/MWh $52 $51 $52 Volume TWh 17 20 20 Intermediate Coal, Combined % Hedged 30-35% 0% 0% Cycle, Peaking Pric

  13. Slide 13: PSEG 2015 Guidance for Operating Income by Subsidiary and PSEG Power Adjusted EBITDA

    PSEG2015 Guidancefor OperatingIncome– by Subsidiary and PSEGPowerAdjustedEBITDA PSEG Power Adjusted EBITDA** $ millions (except EPS) 2015E 2014 PSEG Power $1,545 - $1,645 $1,584 * SEESLIDEAFORITEMSEXCLUDED FROMNETINCOMETORECONCILE TOOPERATING EARNINGS; INCLUDESTHEFINANCIALIMPACT FROMMARK-TO-MARKETPO

  14. Slide 14: PSEG Summary

    PSEG Summary • Our 2014 earnings of $2.76 exceeded our revised operating earnings guidance of $2.60 -$2.75 per share • Continued third year of anticipated positive earnings trend in 2015 with operating earnings guidance of $2.75 to $2.95 per share • Continued 5th straight year of expected double dig

  15. Slide 15: Our balance sheet remains strong

    Our balance sheet remains strong March 31, 2015 $ Billions PSEG PSE&G Power Cash and Cash Equivalents $1.0 $0.3 $0.0 Short Term Debt $0.0 $0.0 N/A LongTerm Debt(1) 8.9 6.3 2.5 Common Equity 12.5 7.0 5.7 Total Capitalization $21.4 $13.3 $8.2 Total Debt / Capitalization 41% 47% 31% PSE&GRegulatedEquit

  16. Slide 16: PSEG Liquidity as of March 31, 2015

    PSEGLiquidity as of March 31, 2015 115

  17. Slide 17: PSEG Energy Holdings Investment Portfolio

    PSEG Energy Holdings Investment Portfolio Investment Balance* at 3/31/15 Equipment ($Millions) Merchant Energy Leases Keystone, Conemaugh & Shawville (PA) NRG REMA 355 3 coal-fired plants (1,162 equity MW) NRG Energy, Inc./Midwest Gen** Powerton & Joliet Generating Stations (IL) 218 2 coal-fired gen

  18. 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 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

  19. Slide 19: 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 PSEG Power Adjusted EBITDA Reconcilation Three Months Ended Year Ended Reconciling Items March 31, December 31, 2015 2014 2014 ($ Millions, Unaudited) Adjusted EBITDA $ 626 $ 651 $ 1,584 Fossil Major Maintenance, p

  20. Slide 20: 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 Three Months Ended Reconciling Items, net of tax March 31, 2015 2014 Earnings Impact ($ Millions) (Unaudited) Operating Earnings $ 529 $ 515 Gain (Loss) on

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