Public Service Enterprise Group Incorporated · NYSE:PEG
Public Service Enterprise — Lehman Brothers 2006 CEO Energy/Power Conference
15 slides from Public Service Enterprise's conference presentation, Sep 6, 2006
Slide 1: Lehman Brothers 2006 CEO Energy/Power Conference
Lehman Brothers 2006 CEO Energy/Power Conference New York City September 6, 2006 Exelon Corporation Public Service Enterprise Group
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 Exelon Corporation (Exelon), Commonwealth Edison Co
Slide 3: Agenda
Agenda Tom O'Flynn Executive VP and CFO Public Service Enterprise Group John Young Executive VP, Finance and Markets, and CFO Exelon Corporation PSEG Update Exelon Update Merger Update
Slide 4: PSEG Update
PSEG Update © PSEG
Slide 5: PSEG Overview
PSEG Overview Electric Customers: 2.1M Gas Customers: 1.7M Nuclear Capacity: 3,494 MW Total Capacity: 14,636 MW Traditional T&D Leveraged Leases 2006E Operating Earnings(1)(2): $875M - $950M 2006 EPS Guidance(1)(2): $3.45 - $3.75 Assets (as of 12/31/05): $ 29.8B Domestic/Int'l Energy Regional Wholes
Slide 6: Year to Date Results - 2nd Quarter 2006
2005 2006 1.35 1.35 1.37 activity 1.6 1.47 negative activity 0.25 0.02 0.09 Power Nuclear Operations $.16 Recontracting & Higher Margins $.31 BGSS ($.13) MTM ($.07) Depreciation on New Assets ($.11) O&M ($.08) Additional Shares & Other ($.06) $/Share Holdings Prior year gains Eagle Point, MPC, SEGS
Slide 7: PSEG Power Overview
PSEG Power Overview Nuclear Nuclear Operating Services Agreement 2005 - record output 2006 - year to date output exceeds 2005 at each unit Fossil Increased output over 2005 Improved performance Margin Growth 2006 - energy recontracting improvements 2007 and beyond - energy recontracting and capacity
Slide 8: PJM Pricing Environment: Electricity and Natural Gas Forward Price Movements
NYMEX Natural Gas PJM West RTC Henry Hub $/MBTU PJM West RTC $/Mwh PJM Pricing Environment Electricity and Natural Gas Forward Price Movements 2003 - 2007
Slide 9: BGS Auction Results
BGS Auction Results Transmission Ancillary services Load shape Congestion Risk premium Capacity RTC Forward Energy Cost RTC = round the clock Full Requirements 2003 Auction 2004 Auction 2005 Auction 2006 Auction East 34 37 45.14 67.7 West 21.59 18.05 20.77 34.51 $33 - $34 $36 - $37 $55.59 (34 Month
Slide 10: Significant Forward Hedging of Nuclear and Coal
> 95% 85 - 95% 65 - 80% 2006 2007 2008 % Hedged Significant Forward Hedging of Nuclear and Coal
Slide 11: PSE&G / Holdings Overview
PSE&G / Holdings Overview PSE&G Providing safe, reliable, low-cost service Merger issues & rate relief requirements Manageable infrastructure improvements Energy Holdings Significant monetization / debt pay downs Stability in international operations Strong performance in Texas
Slide 12: PSEG Stand-Alone 2006 Earnings Guidance
2005 Actual Markets Operations New Assets Leases Other 2006 Guidance 2007 2008 West 890 890 1049 1010 966 914 0 0 0 Seminole 159 48 87 33 17 918 1000 1100 NDT 35 Weather Driven by Power Recontracting at Higher Commodity Prices $3.45 $3.65* PSEG Stand-Alone 2006 Earnings Guidance More than 10% Growth
Slide 13: Merger Update
Merger Update Exelon. © PSEG
Slide 14: Merger Update - NJ Negotiations
Merger Update - NJ Negotiations NJ BPU approval is the final regulatory action needed to complete the merger Series of discussions conducted with parties in NJ to arrive at "best offer" proposal Exelon and PSEG Boards will reassess and make final decision once NJ requirements are known Exelon announ
Slide 15: Lehman Brothers 2006 CEO Energy/Power Conference
Lehman Brothers 2006 CEO Energy/Power Conference New York City September 6, 2006
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