Public Service Enterprise Group Incorporated · NYSE:PEG
Public Service Enterprise — Merrill Lynch Global Power & Gas Leaders Conference 2006
18 slides from Public Service Enterprise's conference presentation, Sep 26, 2006
Slide 1: Public Service Enterprise Group
EXHIBIT 99 Public Service Enterprise Group Merrill Lynch Global Power & Gas Leaders Conference September 26, 2006
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, that are subject to risks and uncertainties. The factors that could cause actual results of Public Service Enterprise Group Incorporated (PSEG)
Slide 3: PSEG Overview
PSEG Overview 2006E Operating Earnings(1)(2): $875M - $950M 2006 EPS Guidance(1)(2): $3.45 - $3.75 Assets (as of 12/31/05): $ 29.8B Traditional T&D Regional Wholesale Energy Electric Customers: 2.1M Nuclear Capacity: 3,494 MW Domestic/Int’l Leveraged Gas Customers: 1.7M Total Capacity: 14,636 MW Ene
Slide 4: PSEG 2007 Earnings Outlook & Drivers
PSEG 2007 Earnings Outlook & Drivers Excess of 10% Growth $4.60 - $5.00 • Gas Rate • Texas $3.45 - $3.75 Case • 2006 RGE • Electric Sale Proceeding • Forward Hedging • New • Weather Accounting Re-contracting Standard • - PJM/NE • Capacity Market Design 2006 Guidance Power PSE&G Holdings 2007 Guidanc
Slide 5: PSEG Power
PSEG Power © PSEG
Slide 6: PSEG Power Overview
V PSEG Power Overview Nuclear • Nuclear Operating Services Agreement provides stability • 2005 – record output • 2006 – year to date output exceeds 2005 at each unit Fossil • Increased output over 2005 • Improved performance Energy & Capacity Margin Growth • 2006 – energy recontracting improvements
Slide 7: Improvements in Nuclear Operations
, Improvements in Nuclear Operations MW Exelon Share 2,500 Total: • Strong operational performance 3,494MW - Capacity factors: YTD ~96% 2,000 , PSEG Summer ~100% 1,500 Share • Outage management 1,000 - Record for reactor head replacement 500 - Site records achieved 0 • Station culture improvements H
Slide 8: Improvement in Fossil Operations
I m p r o v e m e n t in F o s s il O p e r a t io n s T o ta l F os sil O utp u t (Gwh) 25,000 A D i v e r s e 1 1 ,0 0 0 M W F l e e t • 2,400 M W coa l 20,000 • 4 , 3 0 0 M W c o m b in e d c y c le • 4 , 5 0 0 M W p e a k in g a n d o t h e r 15,000 10,000 S t r o n g P e rfo r m a n c e • C o n
Slide 9: BGS Auction Results
BGS Auction Results Increase in Full Requirements Component Due to: Increased Congestion (East/West Basis) $102.21 Full Requirements (36 Month NJ Avg.) • Capacity Anticipated Increase in Capacity Markets/RPM • Load shape Higher Volatility in Market Increases Risk Premium • Transmission • Congestion
Slide 10: Significant Forward Hedging of Nuclear and Coal
Significant Forward Hedging of Nuclear and Coal 120% Generation output not under contract 100% 2006 BGS 80% % of 2005 BGS Nuclear and 2004 BGS Coal 60% 2003 BGS Generation United Illuminating 40% Other term energy contracts 20% 0% Jan-06 Apr-06 Jul-06 Oct-06 Jan-07 Apr-07 Jul-07 Oct-07 Jan-08 Apr-08
Slide 11: Capacity Market Design
Capacity Market Design PJM • FERC Order 4/20/06 • Locational pricing • Settlement discussions ongoing • Anticipated implementation 6/1/07 • PJM simulations show pricing from $20/kw-yr to mid $30’s/kw-yr New England • Forward Capacity Market (FCM) scheduled to begin 12/1/06 • Transition period prices
Slide 12: PSE&G
PSE&G © PSEG
Slide 13: Recognized as a Top Performing Utility
Recognized as a Top Performing Utility Accomplishments • Top quartile performance continues • Strong safety and reliability results • Dedication to capital investment program Issues • Disappointing returns from 0 10ml gas business • ROE: <4% • Re-establish constructive regulatory relations regarding
Slide 14: PSE&G Regulatory Filings
P PSE&G Regulatory Filings Excess Depreciation Credit • $64M annual credit expired December 31, 2005 • PSE&G filed 1Q 2006 actual results in June • Decision was put on hold, pending merger review • Expect discussions to resume with BPU shortly Gas Base Rate Case • $133M revenue increase requested •
Slide 15: PSEG Energy Holdings
PSEG Energy Holdings © PSEG
Slide 16: PSEG Holdings: Providing Meaningful Earnings
PSEG Holdings: Providing Meaningful Earnings • Approximately 95% of Global’s Earnings come from US Generation and Latin PSEG Texas Merchant American Distribution assets Generation Resources (2,000 MW) • Continue strategic asset monetization International Generation Other fully contracted US Generati
Slide 17: PSEG's Business Outlook
PSEG’s Business Outlook • Improved performance and reliability of Nuclear Operations • Enhanced electric marketplace • Business risk improvements 16
Slide 18: Public Service Enterprise Group
Public Service Enterprise Group 17
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