Public Service Enterprise Group Incorporated · NYSE:PEG
Public Service Enterprise — Investor Presentation (April 2014)
8 slides from Public Service Enterprise's investor presentation, Apr 2, 2014
Slide 1: Forward-Looking Statement
EXHIBIT 99 Forward-Looking Statement Certain of the matters discussed in this communication about our and our subsidiaries’ • any deterioration in our credit quality or the credit quality of our counterparties, future performance, including, without limitation, future revenues, earnings, strategies,
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 Income from Continu
Slide 3: PSEG Power has generating assets in three competitive markets
PSEG Power has generating assets in three competitive markets • Assets near loads ISO New York ISO New • Low cost portfolio England • Fuel flexibility with gas Bethlehem Energy Center cost advantage (Albany) Bridgeport • Poised to benefit from New Haven volatility in real-time markets Hudson • Fleet
Slide 4: Market Review: Prices have stabilized
Market Review:Prices have stabilized NYMEX Natural Gas Price PJM West RTC $6 $60 $5 $55 $4 $50 $3 $45 $2 $40 $1 $35 $- $30 1/1/2011 1/1/2012 1/1/2013 1/1/2014 1/1/2015 1/1/2016 1/1/2017 1/1/2018 $25 Historical Forward $20 2011 2012 2013 2014F 2015F 2016F 2017F 2018F PJM West Spark Spreads $38 • Ener
Slide 5: Competitive Advantage: ~25% of Power's gas for generation comes from Marcellus
Competitive Advantage:~25% of Power’s gas for generation comes from Marcellus Market Spot Natural GasPrices: Jun2013 - Mar 2014 Prices for $8 Natural Gas $7 $6 $5 $4 Access to Lower $3 Cost Shale Gas in Marcellus $2 and Utica $1 $- Henry Hub Leidy-Transco (Marcellus) • Our combined cycle and peaking
Slide 6: Competitive Advantage: Locational advantage from short term basis volatility
Competitive Advantage:Locational advantage from short term basis volatility PS Zone Annual Basis to PJM-W PS Zone Day Ahead On Peak Monthly Basis to PJM-W $70 $10 $60 $50 $8 $40 $6 $30 $4 $20 $10 $2 $- $- Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar 2011 2012 2013 2014 F 2015 F 2016 F
Slide 7: Sustainable Advantage: Fuel advantage continues throughout the curve
Sustainable Advantage: Fuel advantage continues throughout the curve Basis to Henry Hub Forward curve shows that Marcellus shale supply averages over $1.50/MMbtu discount year-round through 2018 2013 AVERAGE 6/1/13-12/31/13; F= FORWARDS AS OF 3/24/14. LEIDY BASIS FROM ICE/BROKER QUOTES. 2014F INCLUD
Slide 8: Items Excluded from Income from Continuing Operations/Net Income to Reconcile to Operating Earnings
Items Excluded from Income from Continuing Operations/Net Income to Reconcile to Operating Earnings PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED For the Year Ended Reconciling Items, net of tax December 31, 2013 2012 2011 2010 2009 2008 Earnings Impact ($ Millions) (Unaudited) Operating Earnings $ 1
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