-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, DghsrOpkPagI2MxmFF3KEemx+S3CqDSaOU5dv6JhAYhVsgD9n269oHv1Luvow3ql CWWXkfo6WR4FqNDvXS0OMQ== 0000788784-97-000015.txt : 19970815 0000788784-97-000015.hdr.sgml : 19970815 ACCESSION NUMBER: 0000788784-97-000015 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19970630 FILED AS OF DATE: 19970814 SROS: NYSE SROS: PHLX FILER: COMPANY DATA: COMPANY CONFORMED NAME: PUBLIC SERVICE ENTERPRISE GROUP INC CENTRAL INDEX KEY: 0000788784 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC & OTHER SERVICES COMBINED [4931] IRS NUMBER: 222625848 STATE OF INCORPORATION: NJ FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-09120 FILM NUMBER: 97663082 BUSINESS ADDRESS: STREET 1: 80 PARK PLZ STREET 2: P O BOX 1171 CITY: NEWARK STATE: NJ ZIP: 07101 BUSINESS PHONE: 2014307000 FILER: COMPANY DATA: COMPANY CONFORMED NAME: PUBLIC SERVICE ELECTRIC & GAS CO CENTRAL INDEX KEY: 0000081033 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC & OTHER SERVICES COMBINED [4931] IRS NUMBER: 221212800 STATE OF INCORPORATION: NJ FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-00973 FILM NUMBER: 97663083 BUSINESS ADDRESS: STREET 1: 80 PARK PLZ STREET 2: PO BOX 570 CITY: NEWARK STATE: NJ ZIP: 07101 BUSINESS PHONE: 2014307000 10-Q 1 FORM 10-Q ================================================================================ UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) [ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 1997 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission Registrant, State of Incorporation, I.R.S. Employer File Number Address, and Telephone Number Identification No. - -------------------------------------------------------------------------------- 1-9120 PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED 22-2625848 (A New Jersey Corporation) 80 Park Plaza P.O. Box 1171 Newark, New Jersey 07101-1171 201 430-7000 http://www.pseg.com 1-973 PUBLIC SERVICE ELECTRIC AND GAS COMPANY 22-1212800 (A New Jersey Corporation) 80 Park Plaza P.O. Box 570 Newark, New Jersey 07101-0570 201 430-7000 Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No The number of shares outstanding of Public Service Enterprise Group Incorporated's sole class of common stock, as of the latest practicable date, was as follows: Class: Common Stock, without par value Outstanding at July 31, 1997: 231,957,608 As of July 31, 1997, Public Service Electric and Gas Company had issued and outstanding 132,450,344 shares of common stock, without nominal or par value, all of which were privately held, beneficially and of record by Public Service Enterprise Group Incorporated. ================================================================================ TABLE OF CONTENTS Page PART I. FINANCIAL INFORMATION Item 1. Financial Statements Public Service Enterprise Group Incorporated (Enterprise): Consolidated Statements of Income for the Three and Six Months Ended June 30, 1997 and 1996................................... Consolidated Balance Sheets as of June 30, 1997 and December 31, 1996................................................. Consolidated Statements of Cash Flows for the Six Months Ended June 30, 1997 and 1996................................... Consolidated Statements of Retained Earnings for the Three and Six Months Ended June 30, 1997 and 1996................................... Public Service Electric and Gas Company (PSE&G): Consolidated Statements of Income for the Three and Six Months Ended June 30, 1997 and 1996................................... Consolidated Balance Sheets as of June 30, 1997 and December 31, 1996................................................. Consolidated Statements of Cash Flows for the Six Months Ended June 30, 1997 and 1996................................... Consolidated Statements of Retained Earnings for the Three and Six Months Ended June 30, 1997 and 1996................................... Notes to Consolidated Financial Statements - Enterprise................. Notes to Consolidated Financial Statements - PSE&G...................... Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Enterprise.............................................................. PSE&G ................................................................. PART II. OTHER INFORMATION Item 1. Legal Proceedings................................................ Item 5. Other Information................................................ Item 6. Exhibits and Reports on Form 8-K................................. Signatures - Public Service Enterprise Group Incorporated................. Signatures - Public Service Electric and Gas Company......................
PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED CONSOLIDATED STATEMENTS OF INCOME (Thousands of Dollars, except per share data) (Unaudited) Three Months Ended Six Months Ended June 30, June 30, -------------------------------- ------------------------------- 1997 1996 1997 1996 --------------- --------------- -------------- -------------- OPERATING REVENUES Electric $ 946,006 $ 989,145 $ 1,906,463 $ 1,948,581 Gas 324,179 297,674 1,058,039 1,094,590 Nonutility Activities 52,719 50,255 90,954 92,251 --------------- --------------- -------------- -------------- Total Operating Revenues 1,322,904 1,337,074 3,055,456 3,135,422 --------------- --------------- -------------- -------------- OPERATING EXPENSES Operation: Fuel for Electric Generation and Interchanged Power 242,776 215,972 491,128 432,047 Gas Purchased 179,555 186,504 601,388 643,236 Other 267,792 250,223 517,132 507,084 Maintenance 70,118 87,240 127,671 182,656 Depreciation and Amortization 155,084 151,555 305,423 303,901 Taxes: Federal Income Taxes 49,595 56,092 152,579 154,194 New Jersey Gross Receipts Taxes 117,077 130,979 289,123 319,415 Other 21,557 20,944 42,478 45,886 --------------- --------------- ------------- -------------- Total Operating Expenses 1,103,554 1,099,509 2,526,922 2,588,419 --------------- --------------- ------------- -------------- OPERATING INCOME 219,350 237,565 528,534 547,003 OTHER INCOME AND DEDUCTIONS Settlement of Salem Litigation - Net of Applicable Taxes of $28,700 - - (53,300) - Other - net 1,902 (1,273) 4,204 (2,046) --------------- --------------- -------------- -------------- Total Other Income and Deductions 1,902 (1,273) (49,096) (2,046) --------------- --------------- -------------- -------------- INCOME BEFORE INTEREST CHARGES AND DIVIDENDS ON PREFERRED SECURITIES 221,252 236,292 479,438 544,957 --------------- --------------- -------------- -------------- INTEREST EXPENSE AND PREFERRED DIVIDENDS Interest Expense 116,828 111,044 226,377 226,561 Allowance for Funds Used During Construction - Debt and Capitalized Interest (4,300) (3,921) (9,846) (8,468) Preferred Securities Dividend Requirements 14,430 12,228 28,722 24,469 Net Loss (Gain) on Preferred Stock Redemptions 2,795 (18,493) 3,172 (18,493) --------------- --------------- -------------- -------------- Total Interest Expense and Preferred Dividends 129,753 100,858 248,425 224,069 --------------- --------------- -------------- -------------- INCOME FROM CONTINUING OPERATIONS 91,499 135,434 231,013 320,888 Discontinued Operations - Net of Taxes (Note 5) - (896) - 7,754 --------------- --------------- -------------- -------------- NET INCOME $ 91,499 $ 134,538 $ 231,013 $ 328,642 =============== =============== ============== ============== AVERAGE SHARES OF COMMON STOCK OUTSTANDING 231,957,608 244,697,930 232,014,291 244,697,930 EARNINGS PER AVERAGE SHARE Income From Continuing Operations $0.39 $0.55 $0.99 $1.31 Income From Discontinued Operations - - - 0.03 --------------- --------------- -------------- -------------- TOTAL EARNINGS PER AVERAGE SHARE $0.39 $0.55 $0.99 $1.34 =============== =============== ============== ============== DIVIDENDS PAID PER SHARE OF COMMON STOCK $0.54 $0.54 $1.08 $1.08 See Notes to Consolidated Financial Statements.
PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED CONSOLIDATED BALANCE SHEETS ASSETS (Thousands of Dollars) (Unaudited) June 30, December 31, 1997 1996 ----------- ------------ UTILITY PLANT - Original cost Electric $13,548,730 $13,314,033 Gas 2,625,772 2,555,901 Common 547,564 530,185 ----------- ----------- Total 16,722,066 16,400,119 Less: Accumulated depreciation and amortization 6,158,905 5,889,098 ----------- ----------- Net 10,563,161 10,511,021 Nuclear Fuel in Service, net of accumulated amortization - 1997, $293,330; 1996, $259,384 165,327 198,845 ----------- ----------- Net Utility Plant in Service 10,728,488 10,709,866 Construction Work in Progress, including Nuclear Fuel in Process - 1997, $108,008; 1996, $70,455 347,659 445,321 Plant Held for Future Use 23,966 23,966 ----------- ----------- Net Utility Plant 11,100,113 11,179,153 ----------- ----------- INVESTMENTS AND OTHER NONCURRENT ASSETS Long-Term Investments, net of amortization - 1997, $16,728; 1996, $12,679, and net of valuation allowances - 1997, $16,057; 1996, $16,969 2,257,665 1,854,304 Nuclear Decommissioning and Other Special Funds 432,350 382,348 Other Noncurrent Assets 154,867 115,332 ----------- ----------- Total Investments and Other Noncurrent Assets 2,844,882 2,351,984 ------------ ----------- CURRENT ASSETS Cash and Cash Equivalents 53,746 278,903 Accounts Receivable: Customer Accounts Receivable 456,913 499,858 Other Accounts Receivable 214,270 241,483 Less: Allowance for Doubtful Accounts 37,284 42,283 Unbilled Revenues 172,050 248,504 Fuel, at average cost 224,724 313,019 Materials and Supplies, at average cost, net of inventory valuation reserves - 1997 and 1996, $16,100 147,407 147,757 Prepaid Gross Receipts Taxes - net 301,481 - Miscellaneous Current Assets 67,917 57,186 ----------- ----------- Total Current Assets 1,601,224 1,744,427 ----------- ----------- DEFERRED DEBITS Property Abandonments - net 45,024 52,573 Oil and Gas Property Write-Down 28,347 30,924 Unamortized Debt Expense 132,601 139,067 Deferred OPEB Costs 306,759 226,171 Unrecovered Environmental Costs 126,184 125,900 Unrecovered Plant and Regulatory Study Costs 33,229 33,941 Underrecovered Electric Energy and Gas Costs - net 160,824 176,055 Unrecovered SFAS 109 Deferred Income Taxes 740,627 751,763 Decontamination and Decommissioning Costs 46,643 46,643 Other 81,023 56,730 ----------- ----------- Total Deferred Debits 1,701,261 1,639,767 ----------- ----------- Total $17,247,480 $16,915,331 =========== =========== See Notes to Consolidated Financial Statements.
PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED CONSOLIDATED BALANCE SHEETS CAPITALIZATION AND LIABILITIES (Thousands of Dollars) (Unaudited) June 30, December 31, 1997 1996 ----------- ----------- CAPITALIZATION Common Equity: Common Stock $ 3,603,300 $ 3,626,792 Retained Earnings 1,544,421 1,586,256 ----------- ----------- Total Common Equity 5,147,721 5,213,048 Subsidiaries' Preferred Securities: Preferred Stock Without Mandatory Redemption 94,523 113,392 Preferred Stock With Mandatory Redemption 75,000 150,000 Monthly Guaranteed Preferred Beneficial Interest in PSE&G's Subordinated Debentures 210,000 210,000 Quarterly Guaranteed Preferred Beneficial Interest in PSE&G's Subordinated Debentures 303,000 208,000 Long-Term Debt 4,713,494 4,580,231 ----------- ----------- Total Capitalization 10,543,738 10,474,671 ----------- ----------- OTHER LONG-TERM LIABILITIES Decontamination and Decommissioning Costs 46,643 46,643 Environmental Costs 82,797 85,755 Capital Lease Obligations 51,969 52,371 ----------- ----------- Total Other Long-Term Liabilities 181,409 184,769 ----------- ----------- CURRENT LIABILITIES Long-Term Debt due within one year 532,359 547,981 Commercial Paper and Loans 990,991 638,051 Accounts Payable 593,191 697,304 Other 276,906 388,418 ----------- ----------- Total Current Liabilities 2,393,447 2,271,754 ----------- ----------- DEFERRED CREDITS Deferred Income Taxes 3,306,857 3,250,343 Deferred Investment Tax Credits 352,155 361,786 Deferred OPEB Costs 306,759 226,171 Other 163,115 145,837 ----------- ----------- Total Deferred Credits 4,128,886 3,984,137 ----------- ----------- COMMITMENTS AND CONTINGENT LIABILITIES (Note 3) -- -- ----------- ----------- Total $17,247,480 $16,915,331 =========== =========== See Notes to Consolidated Financial Statements.
PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED CONSOLIDATED STATEMENTS OF CASH FLOWS (Thousands of Dollars) (Unaudited) Six Months Ended June 30, ------------------------- 1997 1996 --------- --------- CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 231,013 $ 328,642 Adjustments to reconcile net income to net cash flows from operating activities: Depreciation and Amortization 305,423 303,901 Amortization of Nuclear Fuel 33,947 26,277 Recovery (deferral) of Electric Energy and Gas Costs - net 15,231 (36,344) Unrealized Gains on Investments - net (6,653) (1,985) Provision for Deferred Income Taxes - net 4,467 44,430 Investment Tax Credits - net (9,393) (9,021) Allowance for Funds Used During Construction - Debt and Capitalized Interest (9,846) (8,468) Proceeds from Leasing Activities 46,755 35,818 Changes in certain current assets and liabilities: Net decrease in Accounts Receivable and Unbilled Revenues 141,613 147,076 Net decrease in Inventory - Fuel and Materials and Supplies 88,645 59,731 Net decrease in Accounts Payable (104,113) (49,550) Net change in Prepaid / Other Accrued Taxes (313,597) (294,823) Net change in Other Current Assets and Liabilities (110,127) (33,056) Other (14,366) 4,349 Net cash provided by operating activities - Discontinued Operations -- 61,377 --------- --------- Net cash provided by operating activities 298,999 578,354 --------- --------- CASH FLOWS FROM INVESTING ACTIVITIES Additions to Utility Plant, excluding AFDC (229,327) (218,426) Net increase in Long-Term Investments and Real Estate (384,847) (8,320) Contribution to Decommissioning Funds and Other Special Funds (27,655) (13,444) Cost of Plant Removal - net (16,241) (13,827) Other (40,119) (2,547) Change in Net Assets - Discontinued Operations -- (23,947) --------- --------- Net cash used in investing activities (698,189) (280,511) --------- --------- CASH FLOWS FROM FINANCING ACTIVITIES Net increase in Short-Term Debt 352,940 169,613 Issuance of Long-Term Debt 475,754 368,324 Redemption of Long-Term Debt (358,113) (529,967) Long-Term Debt Issuance and Redemption Costs (1,339) (38,618) Redemption of Preferred Stock (93,869) (211,602) Issuance of Preferred Securities of Subsidiaries 95,000 208,000 Retirement of Common Stock (42,588) -- Cash Dividends Paid on Common Stock (250,514) (264,274) Preferred Securities Issuance Expenses (3,238) (6,508) --------- --------- Net cash provided by (used in) financing activities 174,033 (305,032) --------- --------- Net decrease in Cash and Cash Equivalents (225,157) (7,189) Cash and Cash Equivalents at Beginning of Period 278,903 61,964 --------- --------- Cash and Cash Equivalents at End of Period $ 53,746 $ 54,775 ========= ========= Income Taxes Paid $ 83,686 $ 83,900 Interest Paid $ 186,571 $ 271,785 See Notes to Consolidated Financial Statements.
PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED CONSOLIDATED STATEMENTS OF RETAINED EARNINGS (Thousands of Dollars) (Unaudited) Three Months Ended June 30, Six Months Ended June 30, --------------------------- ------------------------- 1997 1996 1997 1996 ---------- ---------- ---------- ---------- Balance at Beginning of Period $1,578,256 $1,698,939 $1,586,256 $1,636,971 Add: Net Income 91,499 134,538 231,013 328,642 ---------- ---------- ---------- ---------- Total 1,669,755 1,833,477 1,817,269 1,965,613 ---------- ---------- ---------- ---------- Deduct: Cash Dividends on Common Stock 125,257 132,136 250,514 264,274 Retirement of Common Stock -- -- 19,096 -- Preferred Securities Issuance Expenses 77 6,510 3,238 6,508 ---------- ---------- ---------- ---------- Total Deductions 125,334 138,646 272,848 270,782 ---------- ---------- ---------- ---------- Balance at End of Period $1,544,421 $1,694,831 $1,544,421 $1,694,831 ========== ========== ========== ========== See Notes to Consolidated Financial Statements.
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PUBLIC SERVICE ELECTRIC AND GAS COMPANY CONSOLIDATED STATEMENTS OF INCOME (Thousands of Dollars) (Unaudited) Three Months Ended Six Months Ended June 30, June 30, -------------------------- -------------------------- 1997 1996 1997 1996 ------------ ------------ ------------ ------------ OPERATING REVENUES Electric $ 946,006 $ 989,145 $ 1,906,463 $ 1,948,581 Gas 324,179 297,674 1,058,039 1,094,590 ------------ ------------ ----------- ----------- Total Operating Revenues 1,270,185 1,286,819 2,964,502 3,043,171 ------------ ------------ ----------- ----------- OPERATING EXPENSES Operation: Fuel for Electric Generation and Interchanged Power 242,776 215,972 491,128 432,047 Gas Purchased 179,555 186,504 601,388 643,236 Other 246,175 235,410 477,838 478,300 Maintenance 70,118 87,240 127,671 182,656 Depreciation and Amortization 154,049 150,869 303,208 302,302 Taxes: Federal Income Taxes 45,568 48,984 147,475 143,614 New Jersey Gross Receipts Taxes 117,077 130,979 289,123 319,415 Other 19,838 19,230 39,523 42,817 ------------ ------------ ------------ ----------- Total Operating Expenses 1,075,156 1,075,188 2,477,354 2,544,387 ------------ ------------ ------------ ----------- OPERATING INCOME 195,029 211,631 487,148 498,784 OTHER INCOME AND DEDUCTIONS Settlement of Salem Litigation - Net of Applicable Taxes of $28,700 - - (53,300) - Other - net 1,905 (1,279) 4,201 (2,057) ------------ ------------ ------------ ------------ Total Other Income and Deductions 1,905 (1,279) (49,099) (2,057) ------------ ------------ ------------ ------------ INCOME BEFORE INTEREST CHARGES AND DIVIDENDS ON PREFERRED SECURITIES 196,934 210,352 438,049 496,727 ------------ ------------ ------------ ----------- INTEREST EXPENSE AND PREFERRED SECURITIES DIVIDENDS Interest Expense 101,328 100,291 196,811 202,592 Allowance for Funds Used During Construction - Debt (2,855) (3,471) (7,666) (7,762) Preferred Securities Dividend Requirement of Subsidiaries 11,131 4,765 21,551 9,480 ------------ ------------ ------------ ----------- Total Interest Expense and Preferred Securities Dividends 109,604 101,585 210,696 204,310 ------------ ------------ ------------ ----------- NET INCOME 87,330 108,767 227,353 292,417 Preferred Stock Dividend Requirements 3,299 7,463 7,171 14,989 Net Loss (Gain) on Preferred Stock Redemptions 2,795 (18,493) 3,172 (18,493) ------------ ------------ ------------ ----------- EARNINGS AVAILABLE TO PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED $ 81,236 $ 119,797 $ 217,010 $ 295,921 ============ ============ =========== =========== See Notes to Consolidated Financial Statements.
PUBLIC SERVICE ELECTRIC AND GAS COMPANY CONSOLIDATED BALANCE SHEETS ASSETS (Thousands of Dollars) (Unaudited) June 30, December 31, 1997 1996 ----------- ----------- UTILITY PLANT - Original cost Electric $13,548,730 $13,314,033 Gas 2,625,772 2,555,901 Common 547,564 530,185 ----------- ----------- Total 16,722,066 16,400,119 Less: Accumulated depreciation and amortization 6,158,905 5,889,098 ----------- ----------- Net 10,563,161 10,511,021 Nuclear Fuel in Service, net of accumulated amortization - 1997, $293,330; 1996, $259,384 165,327 198,845 ----------- ----------- Net Utility Plant in Service 10,728,488 10,709,866 Construction Work in Progress, including Nuclear Fuel in Process - 1997, $108,008; 1996, $70,455 347,659 445,321 Plant Held for Future Use 23,966 23,966 ----------- ----------- Net Utility Plant 11,100,113 11,179,153 ----------- ----------- INVESTMENTS AND OTHER NONCURRENT ASSETS Long-Term Investments, net of amortization - 1997, $16,728; 1996, $12,679, and net of valuation allowances - 1997, $14,057; 1996, $13,969 133,699 133,342 Nuclear Decommissioning and Other Special Funds 432,350 382,348 Other Plant, net of accumulated depreciation and amortization - 1997, $1,176; 1996, $1,171 19,153 19,157 ----------- ----------- Total Investments and Other Noncurrent Assets 585,202 534,847 ----------- ----------- CURRENT ASSETS Cash and Cash Equivalents 19,420 47,639 Accounts Receivable: Customer Accounts Receivable 456,913 499,858 Other Accounts Receivable 132,805 175,009 Less: Allowance for Doubtful Accounts 37,284 42,283 Accounts Receivable - Associated Companies - net -- 4,308 Unbilled Revenues 172,050 248,504 Fuel, at average cost 224,724 313,019 Materials and Supplies, at average cost, net of inventory valuation reserves - 1997 and 1996, $16,100 147,407 147,757 Prepaid Gross Receipts and Franchise Taxes 301,481 -- Miscellaneous Current Assets 65,421 53,619 ----------- ----------- Total Current Assets 1,482,937 1,447,430 ----------- ----------- DEFERRED DEBITS Property Abandonments - net 45,024 52,573 Oil and Gas Property Write-Down 28,347 30,924 Unamortized Debt Expense 131,489 137,606 Deferred OPEB Costs 306,759 226,171 Unrecovered Environmental Costs 126,184 125,900 Unrecovered Plant and Regulatory Study Costs 33,229 33,941 Underrecovered Electric Energy and Gas Costs - net 160,824 176,055 Unrecovered SFAS 109 Deferred Income Taxes 740,627 751,763 Decontamination and Decommissioning Costs 46,643 46,643 Other 79,868 56,348 ----------- ----------- Total Deferred Debits 1,698,994 1,637,924 ----------- ----------- Total $14,867,246 $14,799,354 =========== =========== See Notes to Consolidated Financial Statements.
PUBLIC SERVICE ELECTRIC AND GAS COMPANY CONSOLIDATED BALANCE SHEETS CAPITALIZATION AND LIABILITIES (Thousands of Dollars) (Unaudited) June 30, December 31, 1997 1996 ----------- ----------- CAPITALIZATION Common Equity: Common Stock $ 2,563,003 $ 2,563,003 Contributed Capital from Enterprise 594,395 594,395 Retained Earnings 1,326,675 1,365,003 ----------- ----------- Total Common Equity 4,484,073 4,522,401 Preferred Stock Without Mandatory Redemption 94,523 113,392 Preferred Stock With Mandatory Redemption 75,000 150,000 Subsidiaries' Preferred Securities: Monthly Guaranteed Preferred Beneficial Interest in PSE&G's Subordinated Debentures 210,000 210,000 Quarterly Guaranteed Preferred Beneficial Interest in PSE&G's Subordinated Debentures 303,000 208,000 Long-Term Debt 4,141,444 4,107,331 ----------- ----------- Total Capitalization 9,308,040 9,311,124 ----------- ----------- OTHER LONG-TERM LIABILITIES Decontamination and Decommissioning Costs 46,643 46,643 Environmental Costs 82,797 85,755 Capital Lease Obligations 51,969 52,371 ----------- ----------- Total Other Long-Term Liabilities 181,409 184,769 ----------- ----------- CURRENT LIABILITIES Long-Term Debt due within one year 391,862 423,500 Commercial Paper and Loans 861,991 638,051 Accounts Payable 540,523 627,023 Accounts Payable - Associated Companies - net 651 -- Other 250,745 341,742 ----------- ----------- Total Current Liabilities 2,045,772 2,030,316 ----------- ----------- DEFERRED CREDITS Deferred Income Taxes 2,532,277 2,557,587 Deferred Investment Tax Credits 342,253 351,637 Deferred OPEB Costs 306,759 226,171 Other 150,736 137,750 ----------- ----------- Total Deferred Credits 3,332,025 3,273,145 ----------- ----------- COMMITMENTS AND CONTINGENT LIABILITIES (Note 3) -- -- ----------- ----------- Total $14,867,246 $14,799,354 =========== =========== See Notes to Consolidated Financial Statements.
PUBLIC SERVICE ELECTRIC AND GAS COMPANY CONSOLIDATED STATEMENTS OF CASH FLOWS (Thousands of Dollars) (Unaudited) Six Months Ended June 30, ----------------------------------- 1997 1996 ----------- ----------- CASH FLOWS FROM OPERATING ACTIVITIES Net income $227,353 $292,417 Adjustments to reconcile net income to net cash flows from Operating activities: Depreciation and Amortization 303,208 302,302 Amortization of Nuclear Fuel 33,947 26,277 Recovery (deferral) of Electric Energy and Gas Costs - net 15,231 (36,344) Provision for Deferred Income Taxes - net (14,174) 29,609 Investment Tax Credits - net (9,384) (9,486) Allowance for Funds Used During Construction - Debt (7,666) (7,762) Changes in certain current assets and liabilities: Net decrease in Accounts Receivable and Unbilled Revenues 160,912 146,124 Net decrease in Inventory - Fuel and Materials and Supplies 88,645 59,731 Net decrease in Accounts Payable (85,849) (73,157) Net change in Prepaid / Other Accrued Taxes (301,407) (279,499) Net change in Other Current Assets and Liabilities (102,873) (12,712) Other (19,050) 6,606 ----------- ---------- Net cash provided by operating activities 288,893 444,106 ----------- ---------- CASH FLOWS FROM INVESTING ACTIVITIES Additions to Utility Plant, excluding AFDC (229,327) (218,426) Net increase in Long-Term Investments (4,419) (32,377) Contribution to Decommissioning Funds and Other Special Funds (27,655) (13,444) Cost of Plant Removal - net (16,241) (13,827) Other 4 (92) ----------- ---------- Net cash used in investing activities (277,638) (278,166) ----------- ---------- CASH FLOWS FROM FINANCING ACTIVITIES Net increase in Short-Term Debt 223,940 169,613 Issuance of Long-Term Debt 278,720 368,324 Redemption of Long-Term Debt (276,245) (414,010) Long-Term Debt Issuance and Redemption Costs (1,339) (38,573) Redemption of Preferred Stock (93,869) (211,602) Net (Loss) Gain on Preferred Stock Redemptions (3,172) 18,493 Issuance of Preferred Securities of Subsidiaries 95,000 208,000 Cash Dividends Paid (259,271) (271,389) Other (3,238) (6,509) ----------- ---------- Net cash used in financing activities (39,474) (177,653) ----------- ---------- Net decrease in Cash and Cash Equivalents (28,219) (11,713) Cash and Cash Equivalents at Beginning of Period 47,639 32,373 ----------- ---------- Cash and Cash Equivalents at End of Period $19,420 $20,660 =========== ========== Income Taxes Paid $136,599 $142,751 Interest Paid $160,941 $214,403 See Notes to Consolidated Financial Statements.
PUBLIC SERVICE ELECTRIC AND GAS COMPANY CONSOLIDATED STATEMENTS OF RETAINED EARNINGS (Thousands of Dollars) (Unaudited) Three Months Ended June 30, Six Months Ended June 30, ------------------------- ------------------------- 1997 1996 1997 1996 ----------- ----------- ----------- ----------- Balance at Beginning of Period $ 1,370,816 $ 1,411,839 $ 1,365,003 $ 1,365,915 Add: Net Income 87,330 108,767 227,353 292,417 ----------- ----------- ----------- ----------- Total 1,458,146 1,520,606 1,592,356 1,658,332 ----------- ----------- ----------- ----------- Deduct: Cash Dividends on Common Stock 125,300 126,200 252,100 256,400 Preferred Stock, at required rates 3,299 7,463 7,171 14,989 Preferred Securities Issuance Expenses 77 6,509 3,238 6,509 ----------- ----------- ----------- ----------- Total Deductions 128,676 140,172 262,509 277,898 ----------- ----------- ----------- ----------- Net Loss (Gain) on Preferred Stock Redemptions 2,795 (18,493) 3,172 (18,493) ----------- ----------- ----------- ----------- Balance at End of Period $ 1,326,675 $ 1,398,927 $ 1,326,675 $ 1,398,927 =========== =========== =========== =========== See Notes to Consolidated Financial Statements.
PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Note 1. Basis of Presentation The financial statements included herein have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). Certain information and note disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations. However, in the opinion of management, the disclosures are adequate to make the information presented not misleading. These financial statements and Notes to Consolidated Financial Statements (Notes) thereto should be read in conjunction with the respective Registrant's Notes contained in the 1996 Annual Report on Form 10-K. The Notes contained herein update and supplement matters discussed in the 1996 Annual Report on Form 10-K. The unaudited financial information furnished herewith reflects all adjustments which are, in the opinion of management, necessary to a fair statement of the results for the interim periods presented. Note 2. Rate Matters Interim Competition Transition Charge (ICTC) On April 24, 1997, the New Jersey Board of Public Utilities (BPU) issued a generic order to investigate the policy issues related to whether customers who cease to receive electric service from a utility and go to on-site generation should be charged an exit fee. As a result, PSE&G's petition and the motions concerning PSE&G's September 1996 ICTC filing to address this situation has been placed in abeyance pending the conclusion of the generic proceeding. PSE&G and other interested parties presented testimony at the public hearing held by the BPU under the generic proceeding on June 19, 1997. The matter continues to be reviewed by the BPU within the New Jersey Energy Master Plan proceeding. PSE&G cannot predict the outcome of this proceeding. Demand Side Adjustment Factor (DSAF) On February 24, 1997, PSE&G filed a motion with the BPU requesting a $151 million increase for its DSAF to reflect increases in the costs associated with PSE&G's Demand Side Management (DSM) Programs. The increase was requested to become effective on May 1, 1997 and continue through December 31, 1998. On March 26, 1997, this matter was transferred to the Office of Administrative Law (OAL) for hearing. A hearing has been scheduled before the OAL beginning on September 17, 1997. PSE&G cannot predict the outcome of this proceeding. Remediation Adjustment Charge (RAC) On July 30, 1997, the BPU approved the recovery of remediation program costs incurred during the period August 1, 1995 through July 31, 1996 on a final basis. Also on this date, PSE&G filed a motion with the BPU requesting an increase of $6.8 million in its RAC in order to recover remediation costs incurred during the period August 1, 1996 through July 31, 1997. PSE&G cannot predict the outcome of this proceeding. Postretirement Benefits Other Than Pensions (OPEB) On July 8, 1997, PSE&G filed its Phase II Petition with the BPU to resolve the regulatory and rate issues associated with Statement of Financial Accounting Standards No. 106 "Employers' Accounting for Postretirement Benefits Other Than Pensions" (SFAS 106). The petition requests the BPU to recognize that current base rates are sufficient to recover PSE&G's accrued and deferred OPEB costs. This petition was in response to a January 8, 1997 BPU Order which adopted a Stipulation of the parties for determining accrual rate recognition under one of the rate mechanisms established in the BPU's Generic Proceeding, initiated on August 1, 1996. PSE&G cannot predict the outcome of this proceeding. New Jersey Gross Receipts and Franchise Tax (NJGRT) Legislation was approved and will become effective on January 1, 1998 which repeals the NJGRT collected by utilities from their customers and replaces it with a combination of corporate business tax, state sales and use tax and a transitional tax assessment which will be phased out over five years. The new tax structure is expected to improve the competitive position of PSE&G vis-a-vis non-utility energy providers in New Jersey who are currently not subject to NJGRT. Note 3. Commitments and Contingent Liabilities Hazardous Waste Certain Federal and State laws authorize the U.S. Environmental Protection Agency (EPA) and the New Jersey Department of Environmental Protection (NJDEP), among other agencies, to issue orders and bring enforcement actions to compel responsible parties to investigate and take remedial actions at any site that is determined to present an imminent and substantial danger to the public or the environment because of an actual or threatened release of one or more hazardous substances. Because of the nature of PSE&G's business, including the production of electricity, the distribution of gas and, formerly, the manufacture of gas, various by-products and substances are or were produced or handled which contain constituents classified as hazardous. PSE&G generally provides for the disposal or processing of such substances through licensed independent contractors. However, these statutory provisions impose joint and several responsibility without regard to fault on all responsible parties, including the generators of the hazardous substances, for certain investigative and remediation costs at sites where these substances were disposed of or processed. PSE&G has been notified with respect to a number of such sites and the remediation of these potentially hazardous sites is receiving attention from the government agencies involved. Generally, actions directed at funding such site investigations and remediation include all suspected or known responsible parties. Except as discussed below with respect to its Manufactured Gas Plant Remediation Program (Remediation Program), Enterprise and PSE&G do not expect their expenditures for any such site to have a material effect on their financial condition, results of operations and net cash flows. PSE&G Manufactured Gas Plant Remediation Program In 1988, NJDEP notified PSE&G that it had identified the need for PSE&G, pursuant to a formal arrangement, to systematically investigate and, if necessary, resolve environmental concerns extant at PSE&G's former manufactured gas plant sites. To date, NJDEP and PSE&G have identified 38 such sites. PSE&G is currently working with NJDEP under a program to assess, investigate and, if necessary, remediate environmental concerns at these sites. The Remediation Program is periodically reviewed and revised by PSE&G based on regulatory requirements, experience with the Remediation Program and available remediation technologies. The cost of the Remediation Program cannot be reasonably estimated, but experience to date indicates that costs of at least $20 million per year could be incurred over a period of more than 30 years and that the overall cost could be material to Enterprise and PSE&G's financial condition, results of operations and net cash flows (see Rate Matters). Note 4. Financial Instruments and Risk Management Enterprise's operations give rise to exposure to market risks from changes in commodity prices, interest rates, foreign exchange rates and security prices of investments. Enterprise's policy is to use derivative financial instruments for the purpose of managing market risk consistent with its business plans and prudent practices. Natural Gas Hedging Through June 30, 1997, Energis Resources Incorporated (Energis Resources) entered into futures contracts to buy an aggregate of 7,280,000 mmbtu of natural gas at an average price of $2.13 per mmbtu related to fixed-price sales commitments. Such contracts, together with physical purchase contracts, hedged approximately 89% of its fixed-price sales commitments at June 30, 1997. Energis Resources had a deferred unrealized hedge gain of $0.9 million at June 30, 1997. Interest Rate Swap CEA Americas Operating Company (CEA-AOC), an indirect 90% owned subsidiary of Community Energy Alternatives Incorporated (CEA), entered into an interest rate borrowing on June 2, 1997 to swap floating rate borrowings into fixed rate borrowings. The interest differential to be received or paid under the interest rate swap agreement is accrued over the life of the agreement as an adjustment to the interest expense of the related borrowing. The swap terminates on May 28, 1999. The notional amount and interest rates are as follows: Pay-fixed swap Notional amount $43,522,000 Pay rate 6.65% Average receive rate 5.69% June 30, 1997 receive rate 5.69% Receive rate index: Libor Note 5. Discontinued Operations Prior year operating results of Energy Development Corporation (EDC) are summarized below: Three Months Ended Six Months Ended June 30, 1996 June 30, 1996 ---------------------- ---------------------- (Thousands of Dollars) (Thousands of Dollars) Revenues $ 58,914 $126,259 Operating income 4,163 22,457 Earnings before income taxes (3,638) 9,062 Income taxes (2,742) 1,308 Net income (896) 7,754 PUBLIC SERVICE ELECTRIC AND GAS COMPANY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS The Notes to Consolidated Financial Statements of Enterprise are incorporated herein by reference insofar as they relate to PSE&G and its subsidiaries: Note 1. Basis of Presentation Note 2. Rate Matters Note 3. Commitments and Contingent Liabilities PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Following are the significant changes in or additions to information reported in the Public Service Enterprise Group Incorporated (Enterprise) 1996 Annual Report on Form 10-K affecting the consolidated financial condition and the results of operations of Enterprise and its subsidiaries. This discussion refers to the Consolidated Financial Statements (Statements) and related Notes of Enterprise and should be read in conjunction with such Statements and Notes. Results of Operations Earnings per share of Enterprise common stock for the quarter and six months ended June 30, 1997 were $0.39 and $0.99, respectively, down 29% and 26% compared to the same periods in 1996. Earnings per share for the quarter and six months ended June 30, 1997 decreased primarily due to lower electric and gas sales by Public Service Electric and Gas Company (PSE&G) resulting from considerably cooler weather in May and June 1997, as well as milder winter weather during 1997, the settlement of a lawsuit filed by two of the co-owners of the Salem Nuclear Generating Station (Salem), higher administrative costs attributable to legal fees associated with the settlement and a gain in the second quarter of 1996 from the repurchase of a portion of PSE&G's outstanding cumulative preferred stock at discounts to par. These decreases were partially offset by lower 1997 operations and maintenance expenses at Hope Creek Nuclear Generating Station (Hope Creek) and Salem. Enterprise Diversified Holdings Incorporated's (EDHI) contribution to earnings decreased for the quarter and six months ended June 30, 1997 primarily due to lower Public Service Resources Corporation (PSRC) earnings in 1997 as a result of leveraged buy-out fund gains realized in 1996 and higher operating expenses of Energis Resources Incorporated (Energis Resources). PSE&G - Revenues Electric Increase (Decrease) Increase (Decrease) -------------------- --------------------- Three Months Ended Six Months Ended June 30, June 30, 1997 vs. 1996 1997 vs. 1996 -------------------- ----------------------- (Millions of Dollars) (Millions of Dollars) Kilowatt-hour revenues $ (62) $ (84) Recovery of energy costs 30 61 Non-margin revenues (A) (8) (17) Other operating revenues (3) (2) -------------------- ----------------------- Total Electric Revenues $ (43) $ (42) ===================== ====================== Revenues decreased $43 million or 4.4% and $42 million or 2.2% for the quarter and six months ended June 30, 1997, respectively, from comparable periods in 1996. These decreases were primarily due to cooler spring and summer weather in 1997, and a change in estimates of unbilled revenue as a result of refinements to PSE&G's methodology, partially offset by increased energy sales to other utilities and to wholesale customers. Gas Increase (Decrease) Increase (Decrease) -------------------- --------------------- Three Months Ended Six Months Ended June 30, June 30, 1997 vs. 1996 1997 vs. 1996 -------------------- --------------------- (Millions of Dollars) (Millions of Dollars) Therm revenues $ 40 $ 27 Recovery of fuel costs (5) (36) Non-margin revenues (A) (9) (26) Other operating revenues 1 (2) --------------------- --------------------- Total Gas Revenues $ 27 $ (37) ===================== ===================== Revenues increased $27 million or 8.9% for the quarter ended June 30, 1997 over the comparable period of 1996 primarily due to cooler weather in May and June of 1997 and a change in estimates of unbilled revenue as a result of refinements to PSE&G's methodology. Revenues decreased $37 million or 3.3% for the six months ended June 30, 1997 over the comparable period of 1996 primarily due to a lower recovery of fuel costs and mild winter weather in 1997. (A) Non-margin revenues primarily reflect recoveries for Demand Side Management (DSM) Program costs, uncollectibles and NJ Gross Receipts and Franchise Taxes (NJGRT). PSE&G - Expenses Fuel for Electric Generation and Interchanged Power Fuel for Electric Generation and Interchanged Power increased $27 million or 12.4% and $59 million or 13.7% for the quarter and six months ended June 30, 1997, respectively, from the comparable 1996 periods. The increases were primarily due to an increase in energy sales to other utilities and to wholesale customers. Due to the operation of the Electric Levelized Energy Adjustment Clause (LEAC) mechanism, variances in fuel revenues and expenses offset, with no direct effect on earnings. However, under the New Jersey Energy Master Plan, future changes in electric fuel and replacement power costs could impact earnings (see Competitive Environment). Other Operation and Maintenance Expenses Other operation and maintenance expenses decreased $6 million or 2.0% and $55 million or 8.4% for the quarter and six months ended June 30, 1997, respectively, from the comparable 1996 periods. The decreases were primarily due to Hope Creek's extended refueling outage in 1996 and lower 1997 restart activity expenses at Salem. Net (Loss) Gain on Preferred Stock Redemptions Net (Loss) Gain on Preferred Stock Redemptions decreased $21 million and $22 million for the quarter and six months ended June 30, 1997, respectively, from the comparable 1996 periods. The decreases were primarily due to an $18 million net gain on the repurchase of certain of PSE&G's outstanding cumulative preferred stock at discounts to par in the second quarter of 1996. EDHI - Net Income Increase (Decrease) Increase (Decrease) -------------------- --------------------- Three Months Ended Six Months Ended June 30, June 30, 1997 vs. 1996 1997 vs. 1996 -------------------- --------------------- (Millions of Dollars) (Millions of Dollars) PSRC $ (2) $ (8) CEA - 2 Energis Resources (3) (6) EGDC - 1 --------------------- ---------------------- Continuing Operations (5) (11) Discontinued Operations - EDC 1 (8) -------------------- ----------------------- Total $ (4) $ (19) ===================== ====================== Continuing Operations EDHI's income from continuing operations was $10 million for the quarter and $14 million for the six months ended June 30, 1997, respectively, a $5 million and $11 million decrease from the comparable 1996 periods. PSRC's earnings decreased primarily due to leveraged buy-out fund gains realized in 1996. The loss for Energis Resources increased due to higher administrative and general expenditures. CEA's income increased due to improved operations of several projects. Discontinued Operations Energy Development Corporation (EDC) was sold on July 31, 1996. Liquidity and Capital Resources Enterprise Cash generated from operations is expected to provide the major source of funds for growth of the business. Cash and cash equivalents totaled $54 million at June 30, 1997. As of June 30, 1997, Enterprise's capital structure consisted of 48.8% common equity, 44.7% long-term debt and 6.5% preferred stock and other preferred securities. Dividend payments on Common Stock were $1.08 per share and totaled $251 million for the six months ended June 30, 1997. The ability of Enterprise to declare and pay dividends is contingent upon its receipt of dividend payments from its subsidiaries. Since 1992, Enterprise has maintained a constant rate of dividend on its common stock. A key Enterprise objective is to keep its common stock dividend secure. PSE&G During the period January 1, 1997 through June 30, 1997, PSE&G had utility plant additions, including AFDC, of $237 million, primarily due to the replacement of the Salem Unit 1 steam generators. PSE&G expects that it will be able to internally generate all of its construction and capital requirements over the next five years and reduce its debt outstanding by between $1 and $2 billion, assuming adequate and timely recovery of costs including any costs potentially stranded as a result of changes in federal and state regulations, as to which no assurances can be given. (See Competitive Environment and Forward Looking Statements below; Note 2, Rate Matters; Note 3, Commitments and Contingent Liabilities of Notes to Consolidated Financial Statements (Notes).) EDHI During the period January 1, 1997 through June 30, 1997, PSRC entered into leveraged leases of three power plants: one located in the United Kingdom and two in the Netherlands. In July 1997, PSRC entered into an additional leveraged lease of a waste-to-energy facility located in the Netherlands. The aggregate of these investments is approximately $145 million. During the period January 1, 1997 through June 30, 1997, CEA's investment activities included: Acquisition of a 50% interest in a 200 MW natural gas-fired power plant located in Colombia, South America which is currently under construction. Acquisition with a partner of a 90% interest in two Argentinean electric distribution companies serving the Buenos Aires province. CEA's indirect ownership of the two companies is 30%. Each of these investments is considered an exempt foreign utility company. Acquisition of a 49% interest in an operating 180 MW oil-fired cogeneration plant located on the island of Oahu in Hawaii. Acquisition of an 80% interest in a 30 MW coal-fired cogeneration plant in the Jiangsu Province of China which is currently under construction. Acquisition of 27% and 50% ownership interests in energy development companies located in the Philippines and Thailand, respectively. The aggregate of these investments is approximately $290 million, of which $97 million was financed with nonrecourse debt. Over the next several years, EDHI and its subsidiaries will be required to refinance a portion of their maturing debt in order to meet their capital requirements. Any inability to extend or replace maturing debt and/or existing agreements at current levels and interest rates may affect future earnings and result in an increase in EDHI's cost of capital. External Financings - PSE&G PSE&G has New Jersey Board of Public Utilities (BPU) authority to issue approximately $4.455 billion aggregate amount of additional Bonds/Medium-Term Notes (MTNs)/Preferred Stock/Preferred Securities through 1997 for refunding purposes. Under its Mortgage, PSE&G may issue new First and Refunding Mortgage Bonds (Bonds) against previous additions and improvements and/or retired Bonds provided that its ratio of earnings to fixed charges is at least 2:1. At June 30, 1997, this Mortgage ratio was 2.92:1. As of June 30, 1997, the Mortgage would permit up to $3.200 billion aggregate principal amount of new bonds to be issued against previous additions and improvements. In February 1997, PSE&G Capital Trust II, a special purpose statutory business trust controlled by PSE&G, issued $95 million of 8.125% Quarterly Income Preferred Securities (Quarterly Guaranteed Preferred Beneficial Interest in PSE&G's Subordinated Debentures). PSE&G used the proceeds to fund the redemption of the remaining 188,684 shares outstanding of its 6.80% Cumulative Preferred Stock $100 par value at $102 per share in January 1997 and all 750,000 shares of its 7.44% Cumulative Preferred Stock $100 par value at $103.72 per share in June 1997. In June 1997, PSE&G issued $235 million of 6.50% Series XX Bonds due 2000. The proceeds were used primarily to refund the 8.50% Series LL Bonds due 2022. The BPU has authorized PSE&G to issue and have outstanding at any one time through January 2, 1999, not more than $1.3 billion of short-term obligations, consisting of commercial paper and other unsecured borrowings from banks and other lenders. On June 30, 1997, PSE&G had $792 million of short-term debt outstanding. To provide liquidity for its commercial paper program, PSE&G has a $650 million one-year revolving credit agreement expiring in June 1998 and a $650 million five-year revolving credit agreement expiring in June 2002 with a group of commercial banks, which provide for borrowings of up to one year. On June 30, 1997, there were no borrowings outstanding under these credit agreements. PSE&G Fuel Corporation (Fuelco) has a $125 million commercial paper program to finance a 42.49% share of Peach Bottom Atomic Power Station nuclear fuel, supported by a $125 million revolving credit facility with a group of banks, which expires on June 28, 2001. PSE&G has guaranteed repayment of Fuelco's respective obligations under this program. As of June 30, 1997, Fuelco had commercial paper of $70 million outstanding under such program. External Financings - EDHI PSEG Capital Corporation's (Capital) Medium-Term Note (MTN) program provides for an aggregate principal of up to $650 million. At June 30, 1997, Capital had total debt outstanding of $388 million, including $325 million of MTNs. In July 1997, Capital issued an additional $100 million of MTNs with interest rates of approximately 7%. As of June 30, 1997, Enterprise Capital Funding Corporation (Funding) had $128 million of debt outstanding. The MTN and Funding proceeds were used primarily to fund the investments of PSRC and CEA. EDHI, PSRC and CEA are subject to restrictive business and financial covenants contained in existing debt agreements. EDHI is required to maintain a debt to equity ratio of no more than 2.00:1 and a twelve-months earnings before interest and taxes (EBIT) coverage ratio of at least 1.50:1. As of June 30, 1997, EDHI had a consolidated debt to equity ratio of 1.45:1. For the twelve months ended June 30, 1997, the EBIT coverage ratio, as defined to exclude the effects of EGDC and the 1996 gain on the sale of EDC, was 2.26:1. Compliance with applicable financial covenants will depend upon future financial position and levels of earnings, as to which no assurance can be given. Nuclear Operations PSE&G's Salem Units 1 and 2 were taken out of service in the second quarter of 1995. The Salem Restart Plan, which encompassed a comprehensive review and improvement of personnel, process and equipment issues, has been completed for Salem Unit 2. On August 6, 1997, the NRC authorized the restart of Salem 2. The NRC stated that it would continue to closely monitor activities at Salem. Three planned hold points were established and the NRC plans to perform a final assessment after approximately two months of full power operations. The NRC's June 9, 1995 Confirmatory Action letter was amended to include the planned hold points and the final assessment. The restart process is underway. Installation of Salem Unit 1 steam generators has been completed and the unit is expected to return to service around the end of the year. Restart of Salem Unit 1 is also subject to NRC approval. The inability to successfully return these units to continuous, safe operation could have a material adverse impact on the financial condition, results of operations and net cash flows of Enterprise and PSE&G (see Forward Looking Statements). Competitive Environment New Jersey Energy Master Plan On July 15, 1997, PSE&G filed a proposal regarding competition and rates with the BPU in accordance with the April 30, 1997 final report of the BPU on Phase II of the New Jersey Energy Master Plan (Energy Master Plan). The BPU is expected to take at least a year to review and hold public hearings on PSE&G's proposal, rendering a decision by September 1998. Enterprise and PSE&G cannot predict the outcome of this matter. PSE&G's proposal in response to the Energy Master Plan includes the following key elements: A decrease in rates of between 5% and 10%, effective January 1, 1999, dependent upon BPU approval of the proposal's several key elements. Allow all customers in all classes to register for their choice of energy supplier beginning October 1, 1998. Those customers choosing a supplier other than PSE&G would be permitted to switch to the new supplier effective January 1, 1999. A transition period of seven years with basic tariff rates capped during the period. During this transition period, PSE&G would maintain responsibility for system reliability of energy and capacity supply. Recovery of transition costs through securitization, restructuring of certain non-utility generation contracts and depreciation accounting changes. Recovery of societal mandated costs, such as nuclear decommissioning and demand side management expenses, would be adjusted based on changes in these costs. Discontinuation of PSE&G's LEAC effective December 31, 1998. PSE&G would be responsible for all risks associated with changing fuel prices, changes in operations and maintenance expenses and mitigation of the transition costs of non-securitized generation production assets within the price capped rates. Transfer of PSE&G's nuclear and fossil generation assets, at net book value, to a separate entity functionally independent of PSE&G at the conclusion of the transition period. PSE&G would file a rate case or a plan for a form of alternative regulation for its electric distribution delivery service functions one year prior to the end of the transition period. At the end of the transition period, responsibility for generation reliability would shift to the marketplace and PSE&G would retain its obligation to connect and deliver energy and would offer basic generation service. Stranded Costs PSE&G believes its identifiable potentially stranded costs associated with fossil and nuclear generation stations is $3.9 billion, based on certain assumptions, which include market prices of electricity and performance of generating units. Changes in these and other factors could alter the amount of such stranded costs. PSE&G is proposing to refinance, through securitization, $2.5 billion of these costs, with the remainder to be mitigated, in part, through depreciation changes during the transition period. In addition, PSE&G is seeking to restructure certain of its Non-utility Generators (NUGs) contracts, which are estimated as being $1.5 billion above assumed market prices. Under the Energy Master Plan, the cost of power under these contracts would be recoverable in rates (see Forward Looking Statements). Securitization PSE&G is proposing to securitize $2.5 billion of the potentially stranded costs through the issuance of transition bonds with an estimated term of 15 years. The use of securitization as a means to reduce rates depends on enabling legislation, which the New Jersey legislature is not expected to consider prior to the second quarter of 1998. If legislative approval is not granted, PSE&G would alter its proposal and projected rate reduction range. Depreciation PSE&G is proposing to lengthen the depreciable lives of its distribution assets, which are expected to remain regulated, from 28 to 45 years, and amortize the excess of the calculated theoretical depreciation reserves for distribution assets over the seven year transition period. This adjustment is expected to result in an annual depreciation expense associated with distribution assets that would decline by $94 million a year during the transition period and $32 million a year thereafter. Accounting for the Effects of Regulation Currently, PSE&G accounts for the effects of regulation in accordance with the Statement of Financial Accounting Standards (SFAS) No. 71, "Accounting for the Effects of Certain Types of Regulation" (SFAS 71). In accordance with the provisions of SFAS 71, PSE&G defers certain expenses (regulatory assets) on the basis that they will be recovered from customers through the ratemaking process. The regulatory changes proposed in the Energy Master Plan will create a shift from regulated pricing to competitive market pricing. These proposed regulatory changes will limit Enterprise's and PSE&G's ability to continue to meet the applicable criteria of SFAS 71 for the generation portion of PSE&G's business. In response to the continuing deregulation of the electric utility industry, the Financial Accounting Standards Board (FASB), through its Emerging Issues Task Force (EITF), has undertaken an initiative designated as EITF Issue No. 97-4, "Deregulation of the Pricing of Electricity". The purpose of this initiative is to develop guidance for the application of SFAS 101, "Regulated Enterprises-Accounting for the Discontinuation of Application of FASB Statement No. 71". SFAS 101 addresses how an enterprise that ceases to meet the criteria for application of SFAS 71 to all or part of its operations should report that event in its general-purpose financial statements. In May and July 1997, the EITF met to deliberate EITF Issue No. 97-4. In its discussions, the EITF reached a consensus. First, the EITF concluded that an enterprise is required to discontinue the application of SFAS 71 for the deregulated portion of its business once legislation is passed or a rate order is issued, which contains a plan to transition from regulated pricing to market pricing. In addition, the EITF concluded that an enterprise may continue to carry on its books the regulatory assets and regulatory liabilities of the portion of the business to which SFAS 101 is being applied, provided the regulators have approved a regulated cash flow stream. This also applies to costs or obligations not yet recorded as regulatory assets or liabilities regardless of when they are incurred. The discontinuance of SFAS 71 also requires an enterprise to evaluate the impact of SFAS 121, "Accounting for the Impairment of Long-Lived Assets and for Long-Lived Assets to be Disposed Of". SFAS 121 requires that regulatory assets be written off once they are no longer probable of recovery and that impairment losses be recorded for long lived assets when related future cash flows are less than the carrying value of the assets. The impact to Enterprise and PSE&G will be determined based on the outcome of PSE&G's proposal filed in response to the Energy Master Plan. Under its proposal, PSE&G would have the opportunity, through various mechanisms, to recover its electric generation related potentially stranded costs. Management cannot predict the impact of EITF Issue No. 97-4 on Enterprise's and PSE&G's future results of operations and financial condition. However, depending on the legislative and regulatory actions taken in New Jersey with respect to electric utility deregulation, the impact could be material. Impact of New Accounting Pronouncements In March 1997, FASB issued SFAS 128, "Earnings per Share" (SFAS 128) which is effective for financial statements issued after December 15, 1997. SFAS 128 supersedes Accounting Principles Board Opinion No. 15 (APB 15) and replaces the presentation of Primary EPS with a presentation of Basic EPS. It also requires presentation of Basic and Diluted EPS on the income statement for all entities with complex capital structures. The adoption of SFAS 128 is not expected to have a material impact on the financial condition, results of operations and net cash flows of Enterprise and PSE&G. In June 1997, the FASB issued SFAS 130, "Reporting Comprehensive Income" (SFAS 130), which is effective for fiscal years beginning after December 15, 1997. SFAS 130 requires that all items that are required to be recognized under accounting standards as components of comprehensive income be reported in a financial statement that is displayed with the same prominence as other financial statements. It also requires that an enterprise classify items of other comprehensive income by their nature in a financial statement and display the accumulated balance of other comprehensive income separately from retained earnings and additional paid-in capital in the equity section of a statement of financial position. Also in June 1997, FASB issued SFAS 131, "Disclosures about Segments of an Enterprise and Related Information" (SFAS 131), which is effective for financial statements for periods beginning after December 15, 1997. This Statement need not be applied to interim financial statements in the initial year of its application. SFAS 131 supersedes Statement of Financial Accounting Standards No. 14, "Financial Reporting for Segments of a Business Enterprise" (SFAS 14), and requires that companies disclose segment data based on how management makes decisions about allocating resources to segments and measuring their performance. PSE&G The information required by this item is incorporated herein by reference to the following portions of Enterprise's Management's Discussion and Analysis of Financial Condition and Results of Operations, insofar as they relate to PSE&G and its subsidiaries: Results of Operations; Liquidity and Capital Resources; External Financings; Nuclear Operations; Impact of New Accounting Pronouncements and Competitive Environment. Forward Looking Statements The Private Securities Litigation Reform Act of 1995 (the Act) provides a new "safe harbor" for forward-looking statements to encourage such disclosures without the threat of litigation providing those statements are identified as forward-looking and are accompanied by meaningful, cautionary statements identifying important factors that could cause the actual results to differ materially from those projected in the statement. Forward-looking statements have been made in this report. Such statements are based on management's beliefs as well as assumptions made by and information currently available to management. When used herein, the words "will", "anticipate", "estimate", "expect", "objective" and similar expressions are intended to identify forward-looking statements. In addition to any assumptions and other factors referred to specifically in connection with such forward-looking statements, factors that could cause actual results to differ materially from those contemplated in any forward-looking statements include, among others, the following: deregulation and the unbundling of energy supplies and services; an increasingly competitive energy marketplace; sales retention and growth potential in a mature service territory and a need to contain costs; ability to obtain adequate and timely rate relief, cost recovery, including the potential impact of stranded costs, and other necessary regulatory approvals; federal and state regulatory actions; costs of construction; operating restrictions, increased cost and construction delays attributable to environmental regulations; nuclear decommissioning and the availability of reprocessing and storage facilities for spent nuclear fuel; licensing and regulatory approval necessary for nuclear and other operating stations; and credit market concerns. Enterprise and PSE&G undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. The foregoing review of factors pursuant to the Act should not be construed as exhaustive or as any admission regarding the adequacy of disclosures made by Enterprise and PSE&G prior to the effective date of the Act. PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED PART II. OTHER INFORMATION Item 1. Legal Proceedings Certain information reported under Item 3 of Part I of Enterprise's and PSE&G's 1996 Annual Report to the SEC on Form 10-K is updated below. References are to the related page of the Form 10-K. (1) Pages 17 and 25. In July 1997 EPA named PSE&G as a Potentially Responsible Party (PRP) with respect to its Harrison Gas Plant and its Essex Generating Station under the Federal Comprehensive Environmental Response, Compensation and Liability Act of 1980 (CERCLA) at the Passaic River Site. There are currently three PRPs named by EPA at the site, and EPA has sent data requests to additional corporations. While certain remedial activities are ongoing, a report presenting the results thereof is not expected until at least 1999. That report will assess the requirement for remediation and, if determined to be required, present an assessment of and recommendation for a remediation alternative. Total costs associated with the current assessment and feasibility study at the site that have been incurred by other parties are expected to approximate $30 million. PSE&G cannot predict what, if any, action EPA or other PRPs may take with respect to the site or, in such event, what contributions PSE&G may be required to make to the costs of these initiatives. (2) Page 24. PSE&G and the three other co-owners of Salem filed suit in February 1996 in the U.S. District Court for the District of New Jersey against Westinghouse Electric Corporation (Westinghouse) seeking damages to recover the cost of replacing the steam generators at Salem Units 1 and 2. The suit alleges fraud and breach of contract by Westinghouse in the sale, installation and maintenance of the generators. In April 1996, Westinghouse filed an answer and $2.5 million counterclaim for unpaid work related to services at Salem. PSE&G cannot predict the outcome of these proceedings. Ernest H. Drew, a Director of Enterprise, but not of PSE&G became Chief Executive Officer - Industries and Technology Group of Westinghouse on July 1, 1997. In addition, see the following at the pages indicated: (1) Page 12. Proceedings before the BPU relating to PSE&G's Remediation Adjustment Charge (RAC) filed July 30, 1997, Docket No. GR97080573. (2) Page 12. General proceeding before the BPU relating to Statement of Financial Accounting Standards No. 106, "Employers' Accounting for Postretirement Benefits Other than Pensions"(SFAS-106), Docket No. ER97070470. Item 5. Other Information Certain information reported under Enterprise's and PSE&G's 1996 Annual and 1997 Quarterly Reports to the SEC is updated below. References are to the related pages of the Form 10-K and the first quarter 10-Q as printed and distributed. Other State Regulatory Matters Form 10-K, Page 4 In an Order dated June 25, 1997, the BPU determined to commence management audits of all New Jersey electric utilities, with the assistance of one or more consulting firms, under the direction of its own audit staff. The audit process is to include, but not be limited to, focused reviews of electric utility filings in response to the Energy Master Plan. Pennsylvania - New Jersey - Maryland Interconnection (PJM) Form 10-K, Page 6, and First Quarter 10-Q, Page 24 On June 2, 1997, the PJM Member Companies, except for PECO Energy Company (PECO), filed a proposal with the Federal Energy Regulatory Commission (FERC) to reorganize PJM into an Independent System Operator (ISO). The proposal builds on PJM's December 31, 1996 filing with regard to energy market operation and design of transmission tariffs. The filing was made to meet a commitment made to FERC in the December 31, 1996 filing. On June 9, 1997, PECO filed a competing proposal that continues to advocate a different design of the energy market and transmission tariffs consistent with their December 31, 1996 filing. PSE&G cannot predict what actions, if any, FERC may take on this matter. Air Pollution Control Form 10-K, Page 15 In August 1997, the New Jersey Department of Environmental Protection announced that it would be proposing regulations to reduce Nitrogen Oxide (NOx) emissions in New Jersey by 90% from the 1990 level by 2003. At this time, PSE&G cannot predict the impact such proposed regulations may have on its operations or any cost associated with compliance. Nuclear On July 8, 1997, a predecisional enforcement conference was held with the NRC to discuss apparent violations at Salem. These apparent violations were identified in May and June, 1997, and concern emergency core cooling system switchover and related residual heat removal system flow issues, and Appendix R (fire protection) issues. PSE&G cannot predict what further actions the NRC may take in this matter. A predecisional enforcement conference was held with the NRC on August 12, 1997, to discuss apparent violations at Hope Creek relating to the installation of cross-tie valves in the residual heat removal system at Hope Creek in 1994. PSE&G cannot predict what further actions the NRC may take in this matter. PSE&G has been advised by PECO that on July 17, 1997, the NRC issued its periodic Systematic Assessment of Licensee Performance (SALP) Report for Peach Bottom Nuclear Generating Station (Peach Bottom) for the period October 15, 1995 to June 7, 1997. Peach Bottom achieved ratings of "1" in the areas of Plant Operations, Maintenance and Plant Support. The area of Engineering achieved a rating of "2". Overall, the NRC observed excellent performance at Peach Bottom during the assessment period. The NRC stated that station management provided excellent oversight and control of engineering activities throughout the period. The NRC noted that, while overall engineering performance was good, there were several instances where operating procedures, surveillances, and tests were not consistent with the design and licensing bases. PECO has advised PSE&G that it will continue to take actions to improve performance at Peach Bottom. Item 6. Exhibits and Reports on Form 8-K (a) A listing of exhibits being filed with this document is as follows: Exhibit Number Document 12 Computation of Ratios of Earnings to Fixed Charges plus Preferred Securities Dividend Requirements (Enterprise). 12(A) Computation of Ratios of Earnings to Fixed Charges (PSE&G). 12(B) Computation of Ratios of Earnings to Fixed Charges plus Preferred Securities Dividend Requirements (PSE&G). 27(A) Financial Data Schedule (Enterprise) 27(B) Financial Data Schedule (PSE&G) (b) Reports on Form 8-K. None PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrants have duly caused these reports to be signed on their respective behalf by the undersigned thereunto duly authorized. PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED PUBLIC SERVICE ELECTRIC AND GAS COMPANY (Registrants) By: PATRICIA A. RADO Patricia A. Rado Vice President and Controller (Principal Accounting Officer) Date: August 14, 1997
EXHIBIT 12 PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES PLUS PREFERRED SECURITIES DIVIDEND REQUIREMENTS 12 Months Ended YEARS ENDED DECEMBER 31, June 30, ------------ ------------ ------------ ------------- ------------- 1992 1993 1994 1995 1996 1997 ------------ ------------ ------------ ------------- ------------- ------------------ (Thousands of Dollars) Earnings as Defined in Regulation S-K: Net Income (A) 475,150 549,178 666,521 627,287 587,358 513,967 Federal Income Taxes (B) 238,270 296,223 320,218 348,324 297,277 268,735 Fixed Charges 537,455 538,556 534,859 548,579 527,974 527,756 ------------ ------------ ------------ ------------- ------------ ------------------ Earnings 1,250,875 1,383,957 1,521,598 1,524,190 1,412,609 1,310,458 ============ ============ ============ ============= ============ ================== Fixed Charges as Defined in Regulation S-K (C): Total Interest Expense (D) 481,116 470,585 462,189 464,207 453,111 452,927 Interest Factor in Rentals 9,591 11,090 12,120 11,956 11,490 11,363 Subsidiaries' Preferred Securities Dividend Requirements -- -- 1,680 15,664 27,741 39,861 Preferred Stock Dividends 31,907 38,114 40,467 33,762 23,161 15,343 Adjustment to Preferred and Preference Stock Dividends to state on a pre-income tax basis 14,841 18,767 18,403 22,990 12,471 8,262 ------------ ------------ ------------ ------------ ----------- ------------------ Total Fixed Charges 537,455 538,556 534,859 548,579 527,974 527,756 ============ ============ ============ ============= ============ ================== Ratio of Earnings to Fixed Charges 2.33 2.57 2.84 2.78 2.68 2.48 ============ ============ ============ ============= ============ ==================
(A) Excludes 1993 cumulative effect of $5.4 million credit to income reflecting a change in income taxes. (B) Includes state income taxes and federal income taxes for other incomes. (C) Fixed Charges represent (a) interest, whether expensed or capitalized, (b) amortization of debt discount, premium and expense, (c) an estimate of interest implicit in rentals, (d) Preferred Securities Dividend Requirements of subsidiaries, and (e) Preferred Stock Dividend Requirements, increased to reflect the pre-tax earnings requirement for Public Service Enterprise Group Incorporated. (D) Excludes 1992 interest expense on decommissioning costs of $5,208. Effective January 1, 1992, accounting was changed to follow Federal Energy Regulatory Commission guidelines.
EXHIBIT 12 (A) PUBLIC SERVICE ELECTRIC AND GAS COMPANY COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES 12 Months Ended June 30, ------------ ------------- ------------- ------------- ------------- 1992 1993 1994 1995 1996 1997 ------------ ------------- ------------- ------------- ------------- ---------------- (Thousands of Dollars) Earnings as Defined in Regulation S-K: Net Income 475,936 614,868 659,406 616,964 535,071 470,007 Federal Income Taxes (A) 223,782 307,414 301,447 325,737 267,619 244,390 Fixed Charges 411,493 401,046 408,045 418,825 437,812 444,024 ------------ ------------- ------------- ------------ ------------ ----------------- Earnings 1,111,211 1,323,328 1,368,898 1,361,526 1,240,502 1,158,421 ============ ============= ============= ============ ============= ================= Fixed Charges as Defined in Regulation S-K (B) Total Interest Expense (C) 401,902 389,956 395,925 406,869 398,581 392,800 Interest Factor in Rentals 9,591 11,090 12,120 11,956 11,490 11,363 Subsidiaries' Preferred Securities Dividend Requirements -- -- -- -- 27,741 39,861 ------------ ------------- ------------- ------------ ------------- ----------------- Total Fixed Charges 411,493 401,046 408,045 418,825 437,812 444,024 ============ ============= ============= ============ ============= ================= Ratio of Earnings to Fixed Charges 2.70 3.30 3.35 3.25 2.83 2.61 ============ ============= ============= ============ ============= =================
(A) Includes state income taxes and federal income taxes for other income. (B) Fixed Charges represent (a) interest, whether expensed or capitalized, (b) amortization of debt discount, premium and expense, (c) an estimate of interest implicit in rentals, and (d) Preferred Securities Dividend Requirements of subsidiaries. (C) Excludes 1992 interest expense on decommissioning costs of $5,208. Effective January 1, 1992, accounting was changed to follow Federal Energy Regulatory Commission guidelines.
EXHIBIT 12 (B) PUBLIC SERVICE ELECTRIC AND GAS COMPANY COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES PLUS PREFERRED SECURITIES DIVIDEND REQUIREMENTS 12 Months Ended YEARS ENDED DECEMBER 31, June 30, ------------ ------------- ------------- ------------- ------------- 1992 1993 1994 1995 1996 1997 ------------ ------------- ------------- ------------- ------------- ----------------- (Thousands of Dollars) Earnings as Defined in Regulation S-K: Net Income 475,936 614,868 659,406 616,964 535,071 470,007 Federal Income Taxes (A) 223,782 307,414 301,447 325,737 267,619 244,390 Fixed Charges 411,493 401,046 408,045 418,825 437,812 444,024 ------------ ------------- ------------- ------------- ------------ ---------------- Earnings 1,111,211 1,323,328 1,368,898 1,361,526 1,240,502 1,158,421 ============ ============= ============= ============= ============= ================ Fixed Charges as Defined in Regulation S-K (B): Total Interest Expense (C) 401,902 389,956 395,925 406,869 398,581 392,800 Interest Factor in Rentals 9,591 11,090 12,120 11,956 11,490 11,363 Subsidiaries' Preferred Securities Dividend Requirements -- -- -- -- 27,741 39,861 Preferred Stock Dividends 31,907 38,114 42,147 49,426 23,161 15,343 Adjustment to Preferred and Preference Stock Dividends to state on a pre-income tax basis 14,768 18,843 18,763 23,428 12,043 8,262 ------------ ------------- ------------- ------------- ------------ ----------------- Total Fixed Charges 458,168 458,003 468,955 491,679 473,016 467,629 ============ ============= ============= ============= ============= ================= Ratio of Earnings to Fixed Charges 2.43 2.89 2.92 2.77 2.62 2.48 ============ ============= ============= ============= ============= =================
(A) Includes state income taxes and federal income taxes for other income. (B) Fixed Charges represent (a) interest, whether expensed or capitalized, (b) amortization of debt discount, premium and expense, (c) an estimate of interest implicit in rentals, (d) Preferred Securities Dividend Requirements of subsidiaries, and (e) Preferred Stock Dividend Requirements, increased to reflect the pre-tax earnings requirement for Public Service Electric and Gas Company. (C) Excludes 1992 interest expense on decommissioning costs of $5,208. Effective January 1, 1992, accounting was changed to follow Federal Energy Regulatory Commission guidelines. EX-27.A 2 FDS ENTERPRISE
UT This schedule contains summary financial information extracted from SEC Form 10-Q and is qualified in its entirety by reference to such financial statements. 0000788784 PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED 1000 6-MOS DEC-31-1996 JAN-01-1997 JUN-30-1997 PER-BOOK 11,100,113 2,844,882 1,601,224 1,701,261 0 17,247,480 3,603,300 0 1,544,421 5,147,721 588,000 94,523 4,713,494 0 0 990,991 532,359 0 51,969 0 5,128,423 17,247,480 3,055,456 129,863 2,370,874 2,526,922 528,534 (49,096) 479,438 226,377 231,013 28,722 231,013 250,514 192,672 298,999 .99 .99 State Income Taxes of $3,469 and Federal Income Taxes for Other Income of $(26,185) were incorporated into this line item for FDS purposes. In the referenced financial statements, State Income Taxes are included in Taxes - Other and Total Other Income and Deductions are net of the above applicable federal income taxes.
EX-27.B 3 FDS PSE&G
UT This schedule contains summary financial information extracted from SEC form 10-Q and is qualified in its entirety by reference to such financial statements. 0000081033 PUBLIC SERVICE ELECTRIC AND GAS COMPANY 1000 6-MOS DEC-31-1996 JAN-01-1997 JUN-30-1997 PER-BOOK 11,100,113 585,202 1,482,937 1,698,994 0 14,867,246 2,563,003 594,395 1,326,675 4,484,073 588,000 94,523 4,141,444 0 0 861,991 391,862 0 51,969 0 4,253,384 14,867,246 2,964,502 122,127 2,329,042 2,477,354 487,148 (49,009) 438,049 218,362 227,353 7,171 217,010 252,100 165,471 288,893 0 0 State Income Taxes of $837 and Federal Income Taxes for Other Income of $(26,185) were incorporated into this line item for FDS purposes. In the referenced financial statements, State Income Taxes are included in Taxes - Other and Total Other Income and Deductions are net of the above applicable federal income taxes. Total interest expense includes Preferred Securities Dividend Requirements.
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