Public Service Enterprise Group Incorporated · NYSE:PEG
Public Service Enterprise — Lehman Brothers Global Warming Solutions Conference (June 2008)
23 slides from Public Service Enterprise's conference presentation, Jun 4, 2008
Slide 1: Public Service Enterprise Group
Exhibit 99 Public Service Enterprise Group Lehman Brothers Global Warming Solutions Conference New York City June 3, 2008
Slide 2: Forward-Looking Statement
Forward-Looking Statement Readers are cautioned that statements contained in this presentation about our and our subsidiaries' future performance, including future revenues, earnings, strategies, prospects and all other statements that are not purely historical, are forward-looking statements for pu
Slide 3: Energy Efficiency, Demand Response and Renewables: Opportunities for Growth
Energy Efficiency, Demand Response and Renewables: Opportunities for Growth Ralph LaRossa President and Chief Operating Officer – PSE&G
Slide 4: Climate Change
Climate Change The science on Climate Change is real and not debatable. Satisfying the world’s appetite for energy contributes to the growing crisis of global climate change. NJ can help lead the way in reducing the threat of climate change, and position NJ to be as economically competitive as possi
Slide 5: Energy Master Plan (EMP)
Energy Master Plan (EMP) • Draft EMP released by Governor’s Office on April 17, 2008. • Under a “business as usual” approach with no changes in State policies or actions, New Jersey’s projected energy demand in 2020 will be about 100,000 GWh of electricity and over 590 trillion BTUs of natural gas.
Slide 6: Energy Master Plan (EMP)
Energy Master Plan (EMP) Utility Summer 2008 Projected Annual Projected 2020 Peak Demand Growth Rate Peak Demand Forecast (MW) (MW) Atlantic City Electric 2,829 2.60% 3,866 Jersey Central Power & Light 6,478 2.00% 8,216 Public Service Electric & Gas 10,967 1.40% 12,978 Rockland Electric 435 1.10% 49
Slide 7: Energy Master Plan (EMP)
Energy Master Plan (EMP) • GOAL 1: Maximize the State’s energy conservation and energy efficiency to achieve reduction in energy consumption of at least 20% (20,000 GWhrs) by 2020. • GOAL 2: Reduce peak demand for electricity by 5,700 MW by 2020. Actions to Achieve 2020 Peak Load Reduction Target: 5
Slide 8: Energy Master Plan (EMP)
Energy Master Plan (EMP) • GOAL 3: Meet 22.5% (3,600 MW) of the State’s electricity needs from renewable sources. Projected Electricity Growth Rate in New Jersey for all Sectors 2005 - 2020 110,000 100,000 This electricity is projected to come from 900 MW of biomass capacity, at least 1000 MW of off
Slide 9: Energy Master Plan (EMP)
Energy Master Plan (EMP) GOAL 4: Develop new low carbon emitting, efficient power plants and close the gap between the supply and demand of electricity. GOAL 5: Invest in innovative clean energy technologies and businesses to stimulate the industry’s growth in New Jersey. 9
Slide 10: PSE&G's Role
PSE&G’s Role “Green” initiatives include: Campaigning for tougher power plant emission standards Installing new electrical wires and state-of-the-art transformers that are expected to reduce carbon emissions by almost 60,000 tons by year 2020 CFL Pledge Campaign Replacing 1,300 corporate fleet vehic
Slide 11: PSE&G's Blueprint for Sustainability – a challenge and an opportunity
PSE&G’s Blueprint for Sustainability – a challenge and an opportunity New Jersey has passed legislation that recognizes the important role of utilities in promoting a sustainable energy future. In April, PSE&G received approval from the NJ BPU to begin a $105 million investment in solar energy. We a
Slide 12: Why did PSE&G initiate the Solar Loan Program?
Why did PSE&G initiate the Solar Loan Program? At PSE&G, we’re committed to doing our part to save energy, slow global warming, and reduce our dependence on foreign oil. As New Jersey’s largest utility, PSE&G is uniquely positioned to provide the capital resources needed to implement this program. 1
Slide 13: Overview – Innovative Program
Overview – Innovative Program In April, PSE&G received BPU approval of a 2-energy year program to provide for the financing of solar panels and related equipment (Solar Energy System) to properly qualified borrowers on a first come, first served basis. The Solar Energy System must be installed withi
Slide 14: PSE&G is exploring additional investments
PSE&G is exploring additional investments PV Solar: PSE&G supplies 50% of the RPS requirements Declining costs would increase % of RPS supplied with same dollar today. Energy Efficiency: 50% of EMP goal (excluding portion met by code changes) in PSE&G service territory. Demand Response: Retool curre
Slide 15: Why PSE&G?
Why PSE&G? Throughout its 104-year history PSE&G has been committed to providing safe, highly reliable energy as cost-effectively as possible. PSE&G is part of the community it serves and its customers are its neighbors. This close relationship puts the utility in a unique position to promote energy
Slide 16: Innovative Energy Solutions
Innovative Energy Solutions “We stand at the forefront in helping society address the challenge of climate change – the preeminent issue of our time, with the power to transform both our company and our industry.” - Ralph Izzo, Chairman of the Board, President and Chief Executive Officer, PSEG www.p
Slide 17: APPENDIX
APPENDIX
Slide 18: Market Segments – Universal Access
Market Segments – Universal Access PSE&G will provide loans to properly qualified borrowers in four different market segments, on a first come, first served basis. Single Family/ Multi-Family/ Block Residential Affordable I&C Municipal 6 MW 3 MW Megawatts (soft cap first (soft cap first 12 MW 9 MW y
Slide 19: Rates and Return
Rates and Return PSE&G will provide loans to four different market segments, with specific loan characteristics: Single Family/ Multi-Family/ Block Residential Affordable I&C Municipal Term of Loan 10 years 15 years 15 years 15 years Interest Rate 6.5% 11.11% 11.11% 11.11% PSE&G’s pre-tax WACC is 11
Slide 20: Key Loan Terms and Conditions
Key Loan Terms and Conditions The borrower will fully repay the loans by providing PSE&G with SRECs or cash, to repay principal and interest. For every megawatt hour of energy produced by the Solar Energy System, NJ’s Office of Clean Energy will credit the borrower’s SREC account with one SREC (1mwh
Slide 21: Key Loan Terms and Conditions
Key Loan Terms and Conditions PSE&G will conduct an annual true-up to compare the amount due under the loan agreement with the sum of the value of all SRECs generated that year. The borrower will be required to pay any resulting shortfall (in cash) to PSE&G. The owner of the Solar Energy System bear
Slide 22: Cost Recovery
Cost Recovery PSE&G will recover the net monthly revenue requirements associated with the Program through a new Solar Pilot Recovery Charge (“SPRC”), which will be applicable to all electric Rate Schedules. PSE&G will defer costs to the SPRC for future recovery. Public Market Capital: PSE&G Loan PSE
Slide 23: Public Service Enterprise Group
Public Service Enterprise Group