PSEG Announces Second Quarter 2005 Results: Income From Continuing
Operations of 42 Cents Per Share; Operating Earnings of 48 Cents
Per Share Improved Nuclear and Fossil Operations at PSEG Power
NEWARK, N.J., Aug. 1 /PRNewswire-FirstCall/ -- Public Service
Enterprise Group (PSEG) announced today (August 1, 2005) second
quarter Income from Continuing Operations of $101 million or 42
cents per diluted share of common stock based on 243 million
average shares outstanding. Including charges of $183 million or 76
cents per share related to Discontinued Operations at PSEG Power's
Waterford facility, PSEG reported a net loss of $82 million or 34
cents per share. Income from Continuing Operations includes merger
related costs (net of tax) of $14 million or 6 cents per share for
the quarter. Excluding merger related costs, adjusted (non-GAAP)
Operating Earnings for the second quarter 2005 were $115 million or
48 cents per share of common stock. Comparable Income from
Continuing Operations for the second quarter of 2004 was $127
million or 53 cents per share, based on 238 million average shares
outstanding. Including a net loss of $3 million, or 1 cent per
share from Discontinued Operations at PSEG Power and PSEG Global,
PSEG reported Net Income of 53 cents per share. For the six months
ended June 30, 2005, PSEG reported Income from Continuing
Operations of $393 million, or $1.62 per share based on 243 million
average shares outstanding. Including charges of $190 million, or
78 cents per share related to Discontinued Operations at PSEG
Power's Waterford facility, PSEG reported Net Income of $203
million or 84 cents per share. Income from Continuing Operations
includes merger related costs (net of tax) of $16 million or 7
cents per share for the first six months. Excluding merger related
costs, adjusted (non-GAAP) Operating Earnings were $409 million or
$1.69 per share of common stock for the first six months.
Comparable Income from Continuing Operations for the first six
months of 2004 was $409 million or $1.72 per share, based on 238
million average shares outstanding. Including a net loss of $14
million, or 6 cents per share from Discontinued Operations at PSEG
Power and PSEG Global, PSEG reported Net Income of $1.66 per share.
Attachments to this release provide a summary of quarter and
year-to-date results for 2005 and 2004 for PSEG's principal
subsidiaries - Public Service Electric and Gas Company (PSE&G),
PSEG Power and PSEG Energy Holdings. Highlights include: * The
nuclear refueling and reactor vessel head replacement at Salem 2
was completed in a record 36 days. * PSE&G increased the
capacity at the Branchburg switching station by 950 MW with the
addition of a third transformer bank in April. * The Bethlehem
Energy Center, a 750 MW natural gas fired-combined cycle plant,
went into commercial operation in July. * PSEG Power reached an
agreement with AEP to sell the 821 MW Waterford, Ohio plant for
$220 million. Including tax benefits, this sale will result in $300
million of cash available to pay down debt. The closing is expected
to occur in the second half of 2005. * PSEG Resources recorded an
after-tax charge of $15 million resulting from the write-off of an
aircraft lease with United Airlines. * PSE&G refinanced $125
million of 9.125% First and Refunding Mortgage Bonds with a 5.25%,
30-year issuance in early July. * PSEG Energy Holdings closed on a
5-year, $150 million credit facility in late June. "PSEG remains
focused on achieving the operational and safety objectives we set
out for the year and are very pleased with the operating results
for the second quarter," said Thomas M. O'Flynn, chief financial
officer. "Our nuclear units performed at a combined capacity factor
of 86% this quarter, including the scheduled Salem 2 refueling
outage, and our coal units also had improved performance during the
quarter." At PSE&G, the crews have been very busy keeping up
with hot weather to ensure reliability of the system. The extreme
heat and humidity pushed demand from PSE&G's customers to a new
high of 10,780 megawatts on July 27. The previous peak was recorded
on August 14, 2002. O'Flynn indicated the hot weather would bode
well for the third quarter earnings, however PSE&G's second
quarter Operating Earnings were $14 million or 6 cents per share
lower than the prior year. O'Flynn indicated that half the decline
was attributable to lower demand revenues and volume. "With the
fairly mild weather in April and May, our demand revenues were down
from last year and we've seen reduced volume from a few large
industrial users as they have cut back production or shut down
plants." Operating results for PSEG Power for the quarter, which
exclude $7 million or 3 cents per share in merger-related costs,
were $3 million or 1 cent per share favorable to last year.
Improved performance of the nuclear fleet, the absence of
congestion costs associated with the Branchburg transformer and the
increased availability of the fossil fleet improved margins by
about 15 cents for the quarter over the 2004 results. O'Flynn noted
that the absence of a 9 cent benefit recorded last year in the
Nuclear Decommissioning Trust Fund and 4 cents of other gains
masked the strong operational performance at PSEG Power for the
quarter. Improved operations at PSEG Global, notably in Texas and
South America, and foreign exchange gains in Poland, helped to
offset the write-off of the United Airlines Lease at PSEG
Resources. Overall, PSEG Energy Holdings' second quarter results
were 2 cents per share better than last year. PSEG reaffirmed that
its 2005 Operating Earnings guidance of $3.15 to $3.35 per share
excludes an estimated 10 - 15 cents per share for costs associated
with the pending merger with Exelon Corporation. "Merger costs have
become significant current year costs that were not anticipated in
our original guidance," O'Flynn said. During the second quarter,
PSEG Nuclear initiated a work-force reduction in conjunction with
the Nuclear Operating Services Agreement that was signed with
Exelon last December. The workforce reductions underway are part of
the overall merger plan to reduce staffing at nuclear by about 400
positions. In July, PSEG shareholders approved the merger with
Exelon, an important step in the overall approval process. This
approval came on the heels of the June 30th approval by the Federal
Energy Regulatory Commission (FERC). The merger is currently under
review by various other regulatory agencies including the New
Jersey Board of Public Utilities (NJBPU) and the Pennsylvania
Public Utility Commission. O'Flynn indicated that the NJPBU has
recently selected the consultants that will assist them in their
review and that data requests from the NJBPU and consultants to
date total almost 2000. "We are very focused on meeting the needs
of both the Pennsylvania and New Jersey regulators as they review
the merger request," O'Flynn said. The current schedule allows for
a second quarter 2006 closing, however successful settlement
discussions could result in a first quarter 2006 closing,
consistent with the original 12-15 month timeline. "Safe Harbor"
Statement under the Private Securities Litigation Reform Act of
1995 This filing contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995.
Such statements include, but are not limited to, statements about
the benefits of the business combination transaction involving
Public Service Enterprise Group Incorporated and Exelon
Corporation, including future financial and operating results, the
combined company's plans, objectives, expectations and intentions
and other statements that are not historical or current facts. Such
statements are based upon the current beliefs and expectations of
Public Service Enterprise Group Incorporated's and Exelon
Corporation's management, are subject to significant risks and
uncertainties and may differ materially from actual future
experience involving any one or more of such matters. Actual
results may differ from those set forth in the forward-looking
statements. The following factors, among others, could cause actual
results to differ from those set forth in the forward-looking
statements: the timing of the contemplated merger and the impact of
any conditions imposed by regulators in connection with their
approval thereof; the failure of Public Service Enterprise Group
Incorporated and Exelon Corporation stockholders to make the
requisite approvals for the transaction; the risk that the
businesses will not be integrated successfully; failure to quickly
realize cost-savings from the transaction as a result of technical,
logistical, competitive and other factors; the effects of weather;
the performance of generating units and transmission systems; the
availability and prices for oil, gas, coal, nuclear fuel, capacity
and electricity; changes in the markets for electricity and other
energy-related commodities; changes in the number of participants
and the risk profile of such participants in the energy marketing
and trading business; the effectiveness of our risk management and
internal controls systems; the effects of regulatory decisions and
changes in law; changes in competition in the markets we serve; the
ability to recover regulatory assets and other potential stranded
costs; the outcomes of litigation and regulatory proceedings or
inquiries; the timing and success of efforts to develop domestic
and international power projects; conditions of the capital markets
and equity markets; advances in technology; changes in accounting
standards; changes in interest rates and in financial and foreign
currency markets generally; the economic and political climate and
growth in the areas in which we conduct our activities; and changes
in corporate strategies. While we believe that our forecasts and
assumptions are reasonable, we caution that actual results may
differ materially. We intend the forward-looking statements to
speak only as of the time first made and we do not undertake to
update or revise them as more information becomes available.
Additional factors that could cause Public Service Enterprise Group
Incorporated's and Exelon Corporation's results to differ
materially from those described in the forward-looking statements
can be found in the 2004 Annual Reports on Form 10- K, and
Quarterly Reports on Form 10-Q for the quarterly period ended March
31, 2005, of Public Service Enterprise Group Incorporated and
Exelon Corporation. as well as Exelon's Form S-4 filed on February
4, 2005, as such reports and forms may have been amended, each
filed with the Securities and Exchange Commission and available at
the Securities and Exchange Commission's website,
http://www.sec.gov/. Additional Information This communication is
not a solicitation of a proxy from any security holder of Public
Service Enterprise Group Incorporated or Exelon Corporation. Exelon
Corporation has filed with the Securities and Exchange Commission a
registration statement (File No. 333-122704) that includes the
definitive joint proxy statement/prospectus that has been mailed by
Public Service Enterprise Group Incorporated and Exelon Corporation
to their respective security holders in connection with the
proposed merger of Public Service Enterprise Group Incorporated and
Exelon Corporation. WE URGE INVESTORS AND SECURITY HOLDERS TO READ
THE DEFINITIVE JOINT PROXY STATEMENT/PROSPECTUS AND ANY OTHER
RELEVANT DOCUMENTS BECAUSE THEY CONTAIN IMPORTANT INFORMATION ABOUT
PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED, EXELON CORPORATION
AND THE PROPOSED MERGER. Investors and security holders are able to
obtain these materials and other documents filed with the
Securities and Exchange Commission free of charge at the Securities
and Exchange Commission's website, http://www.sec.gov/. In
addition, a copy of the definitive joint proxy statement/prospectus
may be obtained free of charge from Public Service Enterprise Group
Incorporated, Investor Relations, 80 Park Plaza, P.O. Box 1171,
Newark, New Jersey 07101-1171, or from Exelon Corporation, Investor
Relations, 10 South Dearborn Street, P.O. Box 805398, Chicago,
Illinois 60680-5398. Participants in Solicitation Public Service
Enterprise Group Incorporated, Exelon Corporation, their respective
directors and executive officers and other persons may be deemed to
be participants in the solicitation of proxies in respect of the
proposed transaction. Information regarding Public Service
Enterprise Group Incorporated's and Exelon Corporation's directors
and executive officers is available in preliminary joint proxy
statement/prospectus contained in the above referenced registration
statement. OTHER INFORMATION REGARDING THE PARTICIPANTS IN THE
PROXY SOLICITATION AND A DESCRIPTION OF THEIR DIRECT AND INDIRECT
INTERESTS, BY SECURITY HOLDINGS OR OTHERWISE, IS CONTAINED IN THE
DEFINITIVE JOINT PROXY STATEMENT/PROSPECTUS AND OTHER RELEVANT
MATERIALS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION.
Attachment 1 PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED
(Unaudited) For the Quarter For the Six Months Ended Ended June 30,
June 30, 2005 2004 2005 2004 Earnings Results (in Millions)
PSE&G $48 $62 $165 $186 PSEG Power 63 60 178 180 PSEG Energy
Holdings PSEG Global 24 5 79 51 PSEG Resources (1) 13 22 13 PSEG
Energy Holdings (2) (2) (3) (5) Total PSEG Energy Holdings 21 16 98
59 PSEG (17) (11) (32) (16) Operating Earnings $115 $127 $409 $409
Merger and Merger Related Costs (14) - (16) - Income from
Continuing Operations $101 $127 $393 $409 (Loss) Income from
Discontinued Operations, including (Loss) Gain on Disposal (183)
(3) (190) (14) PSEG Net (Loss) Income $(82) $124 $203 $395 Fully
Diluted Average Shares Outstanding (in Millions) 243 238 243 238
Per Share Results (Diluted) PSE&G $0.20 $0.26 $0.68 $0.78 PSEG
Power 0.26 0.25 0.73 0.75 PSEG Energy Holdings PSEG Global 0.10
0.02 0.33 0.21 PSEG Resources - 0.06 0.09 0.05 PSEG Energy Holdings
(0.01) (0.01) (0.01) (0.01) Total PSEG Energy Holdings 0.09 0.07
0.41 0.25 PSEG (0.07) (0.05) (0.13) (0.06) Operating Earnings $0.48
$0.53 $1.69 $1.72 Merger and Merger Related Costs (0.06) - (0.07) -
Income from Continuing Operations $0.42 $0.53 $1.62 $1.72 (Loss)
Income from Discontinued Operations, including (Loss) Gain on
Disposal (0.76) (0.01) (0.78) (0.06) PSEG Net (Loss) Income $(0.34)
$0.52 $0.84 $1.66 Note 1: Net Income includes preferred stock
dividends / preference units distributions relating to PSE&G of
$1 million and $1 million, PSEG Global of $1 million and $4 million
and PSEG Resources of $0 and $1 million for the quarters ended June
30, 2005 and 2004, respectively. Net Income includes preferred
stock dividends / preference units distributions relating to
PSE&G of $2 million and $2 million, PSEG Global of $3 million
and $7 million and PSEG Resources of $0 and $3 million for the six
months ended June 30, 2005 and 2004, respectively. Note 2: Basic
Earnings per Share from Net Income was $(0.34) and $0.52 per share
for the quarters ended June 30, 2005 and 2004, respectively. Basic
Earnings per Share from Net Income was $0.85 and $1.67 per share
for the six months ended June 30, 2005 and 2004, respectively.
Attachment 2 PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED
CONSOLIDATING STATEMENT OF OPERATIONS For the Quarter Ended June
30, 2005 (Unaudited, $ Millions) PSEG PSEG ENERGY PSEG OTHER
PSE&G POWER HOLDINGS (Note 2) OPERATING REVENUES $2,442 $(386)
$1,441 $1,060 $327 OPERATING EXPENSES Energy Costs 1,340 (386) 853
688 185 Operation and Maintenance 578 3 268 235 72 Depreciation and
Amortization 179 5 128 32 14 Taxes Other Than Income Taxes 28 - 28
- - Total Operating Expenses 2,125 (378) 1,277 955 271 Income from
Equity Method Investments 30 - - - 30 OPERATING INCOME 347 (8) 164
105 86 Other Income 41 1 2 30 8 Other Deductions (21) - - (12) (9)
Interest Expense (206) (32) (86) (26) (62) Preferred Securities
Dividends (1) 1 (1) - (1) INCOME FROM CONTINUING OPERATIONS BEFORE
INCOME TAXES (Note 1) 160 (38) 79 97 22 Income Tax Expense (59) 14
(31) (41) (1) INCOME FROM CONTINUING OPERATIONS 101 (24) 48 56 21
Loss from Discontinued Operations, including Loss on Disposal, net
of tax (183) - - (183) - NET (LOSS) INCOME $(82) $(24) $48 $(127)
$21 INCOME FROM CONTINUING OPERATIONS $101 $(24) $48 $56 $21 Merger
and Merger-Related Costs 14 7 - 7 - OPERATING EARNINGS $115 $(17)
$48 $63 $21 For the Quarter Ended June 30, 2004 (Unaudited, $
Millions) PSEG PSEG ENERGY PSEG OTHER PSE&G POWER HOLDINGS
(Note 2) OPERATING REVENUES $2,285 $(300) $1,418 $990 $177
OPERATING EXPENSES Energy Costs 1,250 (299) 824 677 48 Operation
and Maintenance 534 (8) 258 234 50 Depreciation and Amortization
167 3 126 26 12 Taxes Other Than Income Taxes 28 - 28 - - Total
Operating Expenses 1,979 (304) 1,236 937 110 Income from Equity
Method Investments 33 - - - 33 OPERATING INCOME 339 4 182 53 100
Other Income 80 2 3 73 2 Other Deductions (26) - - (17) (9)
Interest Expense (208) (28) (91) (22) (67) Preferred Securities
Dividends (1) 5 (1) - (5) INCOME FROM CONTINUING OPERATIONS BEFORE
INCOME TAXES (Note 1) 184 (17) 93 87 21 Income Tax Expense (57) 6
(31) (27) (5) INCOME FROM CONTINUING OPERATIONS 127 (11) 62 60 16
(Loss) Income from Discontinued Operations, including Gain on
Disposal, net of tax (3) - - (8) 5 NET INCOME $124 $(11) $62 $52
$21 Note 1: Income from Continuing Operations before Income Taxes
includes preferred stock dividends / preference units distributions
relating to PSE&G of $1 million and $1 million, PSEG Global of
$1 million and $4 million and PSEG Resources of $0 and $1 million
for the quarters ended June 30, 2005 and 2004, respectively. Note
2: Primarily includes financing activities at the parent and
intercompany eliminations. Attachment 3 PUBLIC SERVICE ENTERPRISE
GROUP INCORPORATED CONSOLIDATING STATEMENT OF OPERATIONS For the
Six Months Ended June 30, 2005 (Unaudited, $ Millions) PSEG PSEG
ENERGY PSEG OTHER PSE&G POWER HOLDINGS (Note 2) OPERATING
REVENUES $5,751 $(1,370) $3,625 $2,790 $706 OPERATING EXPENSES
Energy Costs 3,214 (1,370) 2,277 1,958 349 Operation and
Maintenance 1,174 - 563 462 149 Depreciation and Amortization 365 9
263 62 31 Taxes Other Than Income Taxes 71 - 71 - - Total Operating
Expenses 4,824 (1,361) 3,174 2,482 529 Income from Equity Method
Investments 67 - - - 67 OPERATING INCOME 994 (9) 451 308 244 Other
Income 84 1 4 61 18 Other Deductions (37) - (1) (20) (16) Interest
Expense (415) (63) (170) (54) (128) Preferred Securities Dividends
(2) 3 (2) - (3) INCOME FROM CONTINUING OPERATIONS BEFORE INCOME
TAXES (Note 1) 624 (68) 282 295 115 Income Tax Expense (231) 27
(117) (124) (17) INCOME FROM CONTINUING OPERATIONS 393 (41) 165 171
98 Loss from Discontinued Operations, including Loss on Disposal,
net of tax (190) - - (190) - NET INCOME (LOSS) $203 $(41) $165
$(19) $98 INCOME FROM CONTINUING OPERATIONS $393 $(41) $165 $171
$98 Merger and Merger-Related Costs 16 9 - 7 - OPERATING EARNINGS
$409 $(32) $165 $178 $98 For the Six Months Ended June 30, 2004
(Unaudited, $ Millions) PSEG PSEG ENERGY PSEG OTHER PSE&G POWER
HOLDINGS (Note 2) OPERATING REVENUES $5,513 $(1,165) $3,600 $2,688
$390 OPERATING EXPENSES Energy Costs 3,080 (1,165) 2,243 1,908 94
Operation and Maintenance 1,077 (19) 536 461 99 Depreciation and
Amortization 335 8 253 49 25 Taxes Other Than Income Taxes 73 - 73
- - Total Operating Expenses 4,565 (1,176) 3,105 2,418 218 Income
from Equity Method Investments 61 - - - 61 OPERATING INCOME 1,009
11 495 270 233 Other Income 111 (3) 6 104 4 Other Deductions (44) -
(1) (31) (12) Interest Expense (420) (51) (187) (52) (130)
Preferred Securities Dividends (2) 10 (2) - (10) INCOME FROM
CONTINUING OPERATIONS BEFORE INCOME TAXES (Note 1) 654 (33) 311 291
85 Income Tax Expense (245) 17 (125) (111) (26) INCOME FROM
CONTINUING OPERATIONS 409 (16) 186 180 59 Loss from Discontinued
Operations, including Gain on Disposal, net of tax (14) - - (19) 5
NET INCOME $395 $(16) $186 $161 $64 Note 1: Income from Continuing
Operations before Income Taxes includes preferred stock dividends /
preference units distributions relating to PSE&G of $2 million
and $2 million, PSEG Global of $3 million and $7 million and PSEG
Resources of $0 and $3 million for the six months ended June 30,
2005 and 2004, respectively. Note 2: Primarily includes financing
activities at the parent and intercompany eliminations. Attachment
4 PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED CAPITALIZATION
SCHEDULE (Unaudited, $ Millions) June 30, December 31, 2005 2004
DEBT Commercial Paper and Loans $731 $638 Long-Term Debt, including
amounts due within one year 8,584 8,588 Securitization Debt,
including amounts due within one year 2,018 2,085 Project Level,
Non-Recourse Debt, including amounts due within one year 1,217
1,437 Debt Supporting Trust Preferred Securities 1,201 1,201 Total
Debt 13,751 13,949 SUBSIDIARY'S PREFERRED SECURITIES 80 80 COMMON
STOCKHOLDERS' EQUITY Common Stock 4,575 4,569 Treasury Stock (968)
(978) Retained Earnings 2,361 2,425 Accumulated Other Comprehensive
Loss (391) (272) Total Common Stockholders' Equity 5,577 5,744
Total Capitalization $19,408 $19,773 Attachment 5 PUBLIC SERVICE
ENTERPRISE GROUP INCORPORATED CONSOLIDATING STATEMENT OF CASH FLOWS
For the Six Months Ended June 30, 2005 (Unaudited, $ Millions) PSEG
PSEG ENERGY PSEG OTHER PSE&G POWER HOLDINGS (Note 1) CASH FLOWS
FROM OPERATING ACTIVITIES Net Income (Note 2) 203 (46) 167 (19) 101
Adjustments to Reconcile Net Income to Net Cash Flows From
Operating Activities Loss on Disposal of Discontinued Operations,
net of tax 177 - - 177 - Depreciation and Amortization 365 5 263 62
35 Amortization of Nuclear Fuel 45 - - 45 - Other (218) (20) (374)
163 13 Net Cash Provided by (Used in) Operating Activities 572 (61)
56 428 149 CASH FLOWS FROM INVESTING ACTIVITIES Additions to
Property, Plant and Equipment (480) 4 (239) (227) (18) Proceeds
from Sale of Investments 26 - - - 26 Collection of Note Receivable
132 - - - 132 Other 3 37 2 (93) 57 Net Cash (Used in) Provided by
Investing Activities (319) 41 (237) (320) 197 CASH FLOWS FROM
FINANCING ACTIVITIES Net change in Short Term Debt 93 (74) 265 (98)
- Redemption of LTD and Project Level/Securitization LTD (78) -
(66) - (12) Return of Capital - 284 - - (284) Issuance of Common
Stock/ Contributed Capital 37 37 - - - Cash Dividends Paid on
Common Stock (267) (267) - - - Other (21) (17) (2) - (2) Net Cash
(Used in ) Provided by Financing Activities (236) (37) 197 (98)
(298) Effect of Exchange Rate Change (2) - - - (2) Net Increase in
Cash and Cash Equivalents 19 (57) 16 10 46 Cash and Cash
Equivalents at Beginning of Period 279 64 6 10 199 Cash and Cash
Equivalents at End of Period 298 7 22 20 245 For the Six Months
Ended June 30, 2004 (Unaudited, $ Millions) PSEG PSEG ENERGY PSEG
OTHER PSE&G POWER HOLDINGS (Note 1) CASH FLOWS FROM OPERATING
ACTIVITIES Net Income (Note 2) 395 (28) 188 161 74 Adjustments to
Reconcile Net Income to Net Cash Flows From Operating Activities
Gain on Disposal of Discontinued Operations, net of tax (3) - - -
(3) Depreciation and Amortization 335 8 253 49 25 Amortization of
Nuclear Fuel 41 - - 41 - Other 64 (2) (262) 126 202 Net Cash
Provided by (Used in) Operating Activities 832 (22) 179 377 298
CASH FLOWS FROM INVESTING ACTIVITIES Additions to Property, Plant
and Equipment (579) (7) (187) (336) (49) Proceeds from Sale of
Investments 292 - - - 292 Other (9) (211) 1 70 131 Net Cash (Used
in) Provided by Investing Activities (296) (218) (186) (266) 374
CASH FLOWS FROM FINANCING ACTIVITIES Net change in Short Term Debt
474 61 222 191 - Issuances of Project level/ Securitization Long
Term Debt 683 - 175 500 8 Redemption of LTD and Project
Level/Securitization LTD (1,643) - (507) (800) (336) Return of
Capital - 225 - - (225) Issuance of Common Stock/ Contributed
Capital - - - - - Cash Dividends Paid on Common Stock (260) (260) -
- - Other 12 36 (2) (12) (10) Net Cash (Used in) Provided by
Financing Activities (734) 62 (112) (121) (563) Effect of Exchange
Rate Change (1) - - - (1) Net Increase in Cash and Cash Equivalents
(199) (178) (119) (10) 108 Cash and Cash Equivalents at Beginning
of Period 452 181 140 27 104 Cash and Cash Equivalents at End of
Period 253 3 21 17 212 Note 1: Primarily includes financing
activities at the parent and intercompany eliminations. Note 2: Net
Income includes preferred stock dividends / preference units
distributions relating to PSEG of $ 2 million and $2 Million.
PSE&G of $2 million and $2 million and Energy Holdings of $3
million and $10 million for the six months ended June 30, 2005 and
2004, respectively. Attachment 6 PUBLIC SERVICE ENTERPRISE GROUP
INCORPORATED Quarter-to-Quarter EPS Reconciliation June 30, 2005
vs. June 30, 2004 (Unaudited) PSEG 2nd Quarter 2004 Net Income
$0.52 Loss from Discontinued Operations 0.01 PSEG 2nd Quarter 2004
Income from Continuing Operations $0.53 PSE&G B/(W) 2nd Quarter
2004 $0.26 Weather - Gas 0.02 Electric Demand and Volume (0.03)
O&M (0.02) Other (0.03) 2nd Quarter 2005 $0.20 $(0.06) $0.52
PSEG Power 2nd Quarter 2004 $0.25 Improved Nuclear operations 0.06
Improved Fossil operations 0.04 2004 Branchburg congestion 0.05
Margin 0.15 Lower NDT Income (0.09) Depreciation, Interest and
other (0.05) 2nd Quarter 2005 $0.26 $0.01 PSEG Energy Holdings 2nd
Quarter 2004 $0.07 Global Operations - primarily TIE and South
America 0.05 Net Foreign Exchange Gains - Primarily Elcho 0.03
Resources Primarily write-off of UAL Lease (0.06) Energy Holdings
(Parent) - 2nd Quarter 2005 $0.09 $0.02 Public Service Enterprise
Group 2nd Quarter 2004 $(0.05) Interest Expense, excluding Merger
and Merger Related costs of ($0.03) (0.02) 2nd Quarter 2005 $(0.07)
$(0.02) PSEG 2nd Quarter 2005 Operating Earnings $0.48 Merger and
Merger Related Costs (0.06) PSEG 2nd Quarter 2005 Income from
Continuing Operations $0.42 Income from Discontinued Operations,
including Gain (Loss) on Disposal (0.76) PSEG 2nd Quarter 2005 Net
Income $(0.34) Attachment 7 PUBLIC SERVICE ENTERPRISE GROUP
INCORPORATED YTD-to-YTD EPS Reconciliation June 30, 2005 vs. June
30, 2004 (Unaudited) PSEG Net Income for the Six Months Ended June
30, 2004 $1.66 Loss from Discontinued Operations, including Loss on
Disposal 0.06 PSEG Income from Continuing Operations for the Six
Months Ended June 30, 2004 $1.72 PSE&G B/(W) Year to Date June
30, 2004 $0.78 Weather 0.01 Gas and Electric - Demand and Volume
(0.05) O&M and Depreciation (0.04) Interest Savings 0.03 Other
(0.04) Additional Shares Outstanding (0.01) Year to Date June 30,
2005 $0.68 $(0.10) $0.52 PSEG Power Year to Date June 30, 2004
$0.75 Margin 0.14 Depreciation & Amortization - Lawrenceburg
(0.03) NDT Income in 2004 (0.07) Interest and Other (0.05)
Additional Shares Outstanding (0.01) Year to Date June 30, 2005
$0.73 $(0.02) PSEG Energy Holdings Year to Date June 30, 2004 $0.25
Global Operations (TIE $0.02, South America $0.04, Eagle Point Gain
in 2004 ($0.03), Other $0.04) 0.07 Net Foreign Exchange Gains -
Primarily Elcho 0.06 Additional Shares Outstanding (0.01) 0.12
Resources Operations (includes EME-Collins lease termination in
2004, sale of SEGS in 2005, lower interest expense in 2005,
partially offset by write off of UAL lease in 2005) 0.04 Additional
Shares Outstanding - 0.04 Energy Holdings (Parent) - Year to Date
June 30, 2005 $0.41 $0.16 Public Service Enterprise Group Year to
Date June 30, 2004 $(0.14) Interest Expense (0.07) Year to Date
June 30, 2005 $(0.21) $(0.07) PSEG Operating Earnings for the Six
Months Ended June 30, 2005 $1.69 Merger and Merger Related Costs
(0.07) PSEG Income from Continuing Operations for the Six Months
Ended June 30, 2005 $1.62 Income (Loss) from Discontinued
Operations, including Gain (Loss) on Disposal (0.78) PSEG Net
Income for the Six Months Ended June 30, 2005 $0.84 Attachment 8
PSEG Global L.L.C. Investment Results (Unaudited, $ Millions) For
the Quarter For the Six Total Capital Ended Months Ended at Risk
(A) June 30, June 30, As of 2005 2005 June 30 December 31 Non- Non-
Recourse Recourse EBIT Interest EBIT Interest 2005 2004 (B) (C) (B)
(C) Region North America $433 $427 $21 $5 $68 $10 South America
1,601 1,581 36 8 74 18 Asia Pacific 6 6 1 - 5 - Europe 206 209 14 9
36 18 India and Oman 74 94 5 1 10 4 Global G&A - Unallocated -
- (8) - (14) - Total $2,320 $2,317 $69 $23 $179 $50 For the Quarter
For the Six Ended Months Ended June 30, 2004 June 30, 2004
Non-Recourse Non-Recourse EBIT Interest EBIT Interest (B) (C) (B)
(C) Region North America $9 $- $64 $- South America 35 2 70 10 Asia
Pacific 4 - 8 - Europe 7 8 20 16 India and Oman 3 4 10 8 Global
G&A - Unallocated (9) - (16) - Total $49 $14 $156 $34
Reconciliation of EBIT to Income from Continuing Operations For the
Quarters Ended For the Six Months Ended June 30, June 30, 2005 2004
2005 2004 Total Global EBIT $69 $49 $179 $156 Interest Expense (43)
(39) (88) (77) Income Taxes - (1) (5) (19) Minority Interest (1) -
(4) (2) Preference Unit Distributions (1) (4) (3) (7) Income from
Continuing Operations $24 $5 $79 $51 (A) Total Capital at Risk
includes Global's gross investments and equity commitment
guarantees less non-recourse debt at the project level. (B) For
investments accounted for under the equity method of accounting,
includes Global's share of net earnings, including Interest Expense
and Income Tax Expense. (C) Non-Recourse Interest is Interest
Expense on debt that is non- recourse to Global. Attachment 9
PUBLIC SERVICE ELECTRIC & GAS Sales and Revenues to Customers
June 2005 Electric Sales and Revenues Three Change Six Change
Twelve Change Months vs. Months vs. Months vs. Sales (millions kwh)
Ended 2004 Ended 2004 Ended 2004 Residential 3,027 -0.7% 6,190
-0.1% 13,113 -0.3% Commercial 5,621 -1.7% 11,394 0.1% 23,343 1.5%
Industrial 1,506 -8.7% 2,952 -7.9% 6,267 -4.9% Street Lighting 76
4.6% 177 0.4% 365 0.6% Interdepartmental 4 -19.3% 8 -59.2% 20
-19.1% Total 10,235 -2.5% 20,720 -1.2% 43,108 -0.1% Revenue (in
millions) Residential $344 -0.9% $694 -1.4% $1,481 -0.8% Commercial
489 2.2% 895 1.0% 1,900 1.4% Industrial 81 -8.6% 151 -5.4% 350
-0.4% Street Lighting 15 3.7% 30 1.1% 60 0.6% Other 77 3.3% 142
0.3% 294 17.8% Total $1,007 0.3% $1,913 -0.5% $4,086 1.4% Gas Sold
and Transported Three Change Six Change Twelve Change Months vs.
Months vs. Months vs. Sales (millions therms) Ended 2004 Ended 2004
Ended 2004 Residential Sales 187 1.3% 903 -1.4% 1,460 -1.4%
Commercial - Firm Sales 73 -5.6% 359 -4.7% 573 -2.5% Commercail -
Interr. & Cogen 12 16.3% 28 20.9% 53 10.1% Industrial - Firm
Sales 5 -29.0% 30 -13.4% 47 -14.8% Inustrial - Interr. & Cogen
83 -13.9% 156 -13.8% 352 -19.2% Other Operating Revenues 0 -85.6% 1
-81.0% (3) -146.1% Total 362 -4.7% 1,477 -3.9% 2,483 -5.0% Gas
Transported 219 -6.7% 535 5.9% 1,065 -3.3% Revenue (in millions)
Residential Sales 146 9.8% 697 5.7% 1,114 2.7% Commercial - Firm
Sales 66 8.5% 301 1.1% 494 10.4% Commercail - Interr. & Cogen
11 69.3% 26 66.9% 44 40.4% Industrial - Firm Sales 5 -18.9% 26
-6.5% 41 -2.5% Inustrial - Interr. & Cogen 70 -3.2% 129 -1.3%
275 -1.6% Other Operating Revenues 32 8.8% 64 9.6% 125 59.5% Total
330 7.1% 1,242 4.5% 2,093 4.6% Gas Transported 104 -2.5% 470 -4.1%
817 -0.6% Three Change Three Change Twelve Change Months vs. Months
vs. Months vs. Weather Data Ended 2004 Ended 2004 Ended 2004 Degree
Days - Actual 529 29.7% 3,238 1.7% 4,934 2.0% Degree Days - Normal
509 3,115 4,839 THI Hours - Actual 4,255 -3.1% 4,256 -3.1% 14,719
-11.5% THI Hours - Normal 3,542 3,570 14,878 Attachment 10 PUBLIC
SERVICE ENTERPRISE GROUP INCORPORATED STATISTICAL MEASURES
(Unaudited) Quarters Ended Six Months Ended June 30, June 30, June
30, June 30, 2005 2004 2005 2004 Weighted Average Common Shares
Outstanding (000's) Basic 238,732 236,705 238,524 236,449 Diluted
243,019 238,001 242,632 238,321 Stock Price at End of Period $60.82
$40.03 Dividends Paid per Share of Common Stock $0.56 $0.55 $1.12
$1.10 Dividend Payout Ratio* 73.0% 65.5% Dividend Yield 3.7% 5.5%
Price/Earnings Ratio* 19.8 11.9 Rate of Return on Average Common
Equity* 13.3% 15.7% Ratio of Earnings to Fixed Charges 1.52 1.73
2.16 2.27 Book Value per Common Share $23.33 $22.89 Market Price as
a Percent of Book Value 261% 175% Total Shareholder Return - Period
Ending 12.9% -13.7% 19.8% -6.3% Total Shareholder Return - 12
Months Ending 59.1% 0.0% Generation by Fuel Type Quarters Six
Months Ended June 30, Ended June 30, 2005 2004 2005 2004 Nuclear -
NJ 36% 31% 36% 34% Nuclear - PA 22% 23% 21% 21% Total Nuclear 58%
54% 57% 55% Fossil - Coal - NJ 12% 10% 13% 10% Fossil - Coal - PA
13% 13% 13% 13% Fossil - Coal - CT 6% 6% 6% 6% Total Coal 31% 29%
32% 29% Fossil - Oil & Natural Gas - NJ 8% 15% 8% 12% Fossil -
Oil & Natural Gas - NY 0% 0% 0% 1% Fossil - Oil & Natural
Gas - CT 2% 1% 2% 2% Fossil - Oil & Natural Gas - Midwest 1% 0%
1% 0% Total Oil & Natural Gas 11% 16% 11% 15% Fossil - Pumped
Storage 0% 1% 0% 1% 100% 100% 100% 100% * Calculation based on
earnings from continuing operations for 12-month period ending
DATASOURCE: PSEG CONTACT: Sue Carson, Director-Investor Relations,
+1-973-430-6565, or Greg McLaughlin, Sr., investor relations
analyst, +1-973-430-6568, both of PSEG Web site:
http://www.pseg.com/
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