8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) October 31, 2017

PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED

(Exact name of registrant as specified in its charter)

New Jersey	001-09120	22-2625848
(State or other jurisdiction of incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)

80 Park Plaza

Newark, New Jersey 07102

(Address of principal executive offices) (Zip Code)

973-430-7000

(Registrant’s telephone number, including area code)

http://www.pseg.com

PUBLIC SERVICE ELECTRIC AND GAS COMPANY

(Exact name of registrant as specified in its charter)

New Jersey	001-00973	22-1212800
(State or other jurisdiction of incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)

80 Park Plaza

Newark, New Jersey 07102

(Address of principal executive offices) (Zip Code)

973-430-7000

(Registrant’s telephone number, including area code)

http://www.pseg.com

PSEG POWER LLC

(Exact name of registrant as specified in its charter)

Delaware	001-34232	22-3663480
(State or other jurisdiction of incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)

80 Park Plaza

Newark, New Jersey 07102

(Address of principal executive offices) (Zip Code)

973-430-7000

(Registrant’s telephone number, including area code)

http://www.pseg.com

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether any of the registrants is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company  ☐

If an emerging growth company, indicate by check mark if such registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act  ☐

The information contained in Item 2.02. Results of Operations and Financial Condition in this Form 8-K is furnished solely for Public Service Enterprise Group Incorporated (PSEG). The information contained in Item 7.01 Regulation FD Disclosure in this combined Form 8-K is separately furnished, as noted, by PSEG, Public Service Electric and Gas Company (PSE&G) and PSEG Power LLC (Power). Information contained herein relating to any individual company is provided by such company on its own behalf and in connection with its respective Form 8-K. PSE&G and Power each makes representations only as to itself and makes no other representations whatsoever as to any other company. The materials furnished as Exhibits 99 and 99.1 are available on the pseg.com website under the investor tab, or at http://investor.pseg.com.

Item 2.02 Results of Operations and Financial Condition

PSEG

On October 31, 2017, PSEG announced unaudited financial results for the three months and nine months ended September 30, 2017. A copy of the earnings release dated October 31, 2017 is furnished as Exhibit 99 to this Form 8-K.

Item 7.01 Regulation FD Disclosure

PSEG, PSE&G and Power

On October 31, 2017, PSEG conducted an earnings call regarding its 2017 third quarter results. A copy of the slideshow presentation used during the earnings call is furnished as Exhibit 99.1 to this Form 8-K.

Item 9.01 Financial Statements and Exhibits

Exhibit 99	Press Release dated October 31, 2017
Exhibit 99.1	Slideshow Presentation

2

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. The signature of the undersigned company shall be deemed to relate only to matters having reference to such company and any subsidiaries thereof.

PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED
(Registrant)
By:	/s/    Stuart J. Black
	STUART J. BLACK
	Vice President and Controller
	(Principal Accounting Officer)

Date: October 31, 2017

3

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. The signature of the undersigned company shall be deemed to relate only to matters having reference to such company and any subsidiaries thereof.

PUBLIC SERVICE ELECTRIC AND GAS COMPANY
(Registrant)
By:	/s/    Stuart J. Black
	STUART J. BLACK
	Vice President and Controller
	(Principal Accounting Officer)

Date: October 31, 2017

4

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. The signature of the undersigned company shall be deemed to relate only to matters having reference to such company and any subsidiaries thereof.

PSEG POWER LLC
(Registrant)
By:	/s/    Stuart J. Black
	STUART J. BLACK
	Vice President and Controller
	(Principal Accounting Officer)

Date: October 31, 2017

5

EX-99

EXHIBIT 99

    Investor News NYSE: PEG

For further information, contact:

•    Kathleen A. Lally, Vice President – Investor Relations	Phone: 973-430-6565
•    Carlotta Chan, Manager - Investor Relations	Phone: 973-430-6596

PSEG ANNOUNCES 2017 THIRD QUARTER RESULTS

Net Income of $0.78 Per Share

Non-GAAP Operating Earnings of $0.82 Per Share

Re-Affirms 2017 Non-GAAP Operating Earnings Guidance of $2.80 - $3.00 Per Share

October 31, 2017 (Newark, NJ) (NYSE – PEG) Public Service Enterprise Group (PSEG) reported third quarter 2017 Net Income of $395 million or $0.78 per share as compared to Net Income of $327 million or $0.64 per share reported for the third quarter of 2016. Non-GAAP Operating Earnings for the third quarter of 2017 were $417 million or $0.82 per share as compared to non-GAAP Operating Earnings for the third quarter of 2016 of $444 million or $0.88 per share.

“We experienced solid results for the quarter, executing well on major initiatives,” said Ralph Izzo, Chairman, President and Chief Executive Officer, “delivering reliable, efficient service, as we continue to upgrade our transmission system, replace cast-iron pipe and construct three new clean gas-fired combined cycle generating stations.”

Management uses non-GAAP Operating Earnings in its internal analysis, and in communications with investors and analysts, as a consistent measure for comparing PSEG’s financial performance to previous financial results. Non-GAAP Operating Earnings exclude the impact of returns(losses) associated with Nuclear Decommissioning Trust (NDT), Mark-to-Market (MTM) accounting and material one-time items.

The table below provides a reconciliation of PSEG’s Net Income to non-GAAP Operating Earnings for the third quarter. See Attachment 11 for a complete list of items excluded from Net Income in the determination of non-GAAP Operating Earnings. The presentation of non-GAAP Operating Earnings is intended to complement, and should not be considered an alternative to, the presentation of Net Income, which is an indicator of financial performance determined in accordance with GAAP. In addition, non-GAAP Operating Earnings as presented in this release may not be comparable to similarly titled measures used by other companies.

PSEG CONSOLIDATED RESULTS (unaudited)

Third Quarter Comparative Results

2017 and 2016

	Income				Diluted Earnings
	($ millions)				Per Share
	2017		2016		2017		2016
Net Income	$	395	$	327	$	0.78	$	0.64
Reconciling Items*		22		117		0.04		0.24
Non-GAAP Operating Earnings	$	417	$	444	$	0.82	$	0.88
				Avg. Shares		507M		508M

* See Attachment 11

Ralph Izzo went on to say, “Despite the impact of abnormally cool weather on third quarter sales and earnings, we remain within our non-GAAP Operating Earnings guidance for the full year of $2.80 - $3.00 per share.”

Non-GAAP Operating Earnings guidance by company for the full year remains unchanged:

2017 Non-GAAP Operating Earnings Guidance

($ millions, except EPS)

	2017 Estimate
PSE&G	$945 - $985
PSEG Power	$435 - $510
PSEG Enterprise/Other	$35 - $35
Non-GAAP Operating Earnings	$1,415 - $1,530
Non-GAAP EPS	$2.80 - $3.00

Due to the forward looking nature of non-GAAP Operating Earnings guidance, PSEG is unable to reconcile this non-GAAP financial measure to the most directly comparable GAAP financial measure. Management is unable to project certain reconciling items, in particular MTM and NDT gains (losses), for future periods due to market volatility.

Non-GAAP Operating Earnings Review and Outlook by Operating Subsidiary

See Attachment 5 for detail regarding the quarter-over-quarter reconciliations for each of PSEG’s businesses.

PSE&G

PSE&G reported Net Income of $246 million ($0.49 per share) for the third quarter of 2017 compared with Net Income of $255 million ($0.50 per share) for the third quarter of 2016.

Net Income growth in the third quarter associated with PSE&G’s expanded investment in electric and gas transmission and distribution facilities was offset by the impact on sales of weather conditions which were substantially cooler than experienced in the year-ago quarter and cooler than normal.

Returns on PSE&G’s expanded investment in transmission added $0.04 per share to Net Income in the quarter. Incremental revenue associated with recovery of PSE&G’s Energy Strong investment infrastructure program of $0.02 per share was offset by a decline in electric demand-related revenues and weather-normalized electric sales. Net Income comparisons were also impacted by a decline in electric sales associated with weather conditions which were approximately 27% cooler than conditions experienced during the 2016 third quarter and 5% cooler than normal. The decline in electric sales reduced third quarter Net Income comparisons by $0.03 per share. An increase in depreciation expense of $0.01 per share associated with PSE&G’s expanded capital base was offset by a decline in operating and maintenance expense. An absence of tax credits available in the year-ago third quarter and other items reduced Net Income comparisons by $0.02 per share.

Electric sales, as a result of cooler summer weather, declined 8.3% in the quarter. The decline was led by an approximate 13.9% decline in sales to residential customers and accompanied a decline in sales to commercial and industrial customers of 4.8% and 4.2%, respectively. On a trailing twelve-month basis, weather-normalized electric sales decreased by 0.1% year-over-year. Gas sales, on the same basis, increased 1.5% led by the commercial sector.

Electric sales comparisons for the quarter reflect warmer than normal weather experienced in the second half of September. The warm weather in the second half of September had a more modest impact on margins, as those sales are accrued at the lower non-summer billing rates.

PSE&G filed an update of its Formula Rate for transmission at the Federal Energy Regulatory Commission (FERC) in October 2017. The update, which reflects an increase in the level of PSE&G’s investment in transmission and a true-up of prior year results, provides for a $212 million increase in annual transmission revenues effective January 1, 2018. The increase is due to planned capital improvements with a focus on improvements to system reliability.

PSE&G, following discussions with the staff of the NJ Board of Public Utilities (BPU) and Rate Counsel, and as approved by the BPU at its October 20, 2017 meeting, agreed to delay the filing of its base distribution rate case by one month to no later than December 1, 2017. The filing will be based upon three months of actual data and nine months of forecasted data with the test year ending June 2018 remaining unchanged.

PSE&G invested approximately $2.1 billion for the nine months ended September 30 in electric and gas transmission and distribution capital projects designed to provide more reliable, safe and resilient service to its 2.2 million customers. For the year, PSE&G currently expects to invest $3.1 billion of capital in its infrastructure. This is lower than the plan of $3.4 billion due to a delay in timing on certain projects and better than anticipated efficiencies.

The forecast of PSE&G’s Net Income for 2017 remains unchanged at $945 - $985 million.

PSEG Power

PSEG Power reported Net Income of $136 million ($0.27 per share) for the third quarter of 2017 and non-GAAP Adjusted EBITDA of $356 million compared with Net Income of $139 million ($0.27 per share) and non-GAAP Adjusted EBITDA of $387 million for the third quarter of 2016. Non-GAAP Operating Earnings for the third quarter of 2017 were $158 million ($0.31 per share) compared with non-GAAP Operating Earnings for the third quarter of 2016 of $170 million ($0.34 per share).

Power’s Net Income in the third quarter was impacted by a decline in energy prices and the effect of cooler than normal weather on demand and output, which offset a decline in operating and maintenance expense.

Non-GAAP Operating Earnings in the quarter increased $0.01 per share as the result of higher capacity prices in New England and PJM. Lower average prices on energy hedges and a decline in market prices combined to reduce non-GAAP Operating Earnings comparisons by $0.05 per share. A 6% decline in output associated with the impact of cooler than normal weather conditions on demand reduced non-GAAP Operating Earnings comparisons by $0.02 per share. A reduction in O&M expense associated with the June 1, 2017 retirement of the Hudson and Mercer coal stations and a decline in nuclear plant related costs improved non-GAAP Operating Earnings comparisons by $0.02 per share. A decline in depreciation expense associated with the retirement of Hudson and Mercer combined with a decline in interest expense and taxes to improve non-GAAP Operating Earnings comparisons by $0.01 per share.

Cooler than normal weather limited peak demand requirements and utilization of the gas-fired combined cycle and peaking fleets. The nuclear fleet’s output increased 20% quarter-over-quarter to 8.2 TWh as the fleet’s capacity factor improved to 96% from 80%. The improvement in performance reflects the absence of lengthy repair-related work at the Salem Station (including repair and replacement of baffle bolts) in the year-ago quarter and strong performance at Hope Creek in the current quarter. Power’s gas-fired combined cycle fleet experienced a 29% decline in output to 3.7 TWh. An increase in the price of gas improved the competitive position of the base-load coal fleet as a decline in market demand sharply reduced utilization of the peaking fleet.

Power continues to forecast output for 2017 of 49 – 50 TWh. Approximately 86% of production for the remainder of the year of 11 TWh is hedged at an average price of $45 per MWh. Power has hedged approximately 70% - 75% of 2018’s forecast output of 52 – 54 TWh

at an average price of $41 per MWh. For 2019, Power has hedged 30% - 35% of forecast output of 58 – 60 TWh at an average price of $39 per MWh. The forecast of output for 2018 and 2019 remains unchanged from prior estimates.

The forecast increase in output in both 2018 and 2019 reflects the commercial start-up in mid-2018 of 1,300 MWs of new gas-fired combined cycle capacity at the Keys Energy Center in Maryland and Sewaren in New Jersey, and the mid-2019 commercial start-up of the 485 MW gas-fired combined cycle generating unit in Bridgeport Harbor, Connecticut.

Management believes non-GAAP Adjusted EBITDA is useful to investors and other users of our financial statements in evaluating operating performance because it provides them with an additional tool to compare business performance across companies and across periods. Management also believes that non-GAAP Adjusted EBITDA is widely used by investors to measure operating performance without regard to items such as income tax expense, interest expense and depreciation and amortization, which can vary substantially from company to company depending upon, among other things, the book value of assets, capital structure, whether assets were constructed or acquired and accounting methods. Non-GAAP Adjusted EBITDA also allows investors and other users to assess the underlying financial performance of our fleet before management’s decision to deploy capital. Non-GAAP Adjusted EBITDA excludes the same items as our non-GAAP Operating Earnings measure as well as income tax expense, interest expense and depreciation and amortization. See Attachment 12 for a complete list of items excluded from Net Income in the determination of non-GAAP Adjusted EBITDA. The presentation of non-GAAP Adjusted EBITDA is intended to complement, and should not be considered an alternative to, the presentation of Net Income, which is an indicator of financial performance determined in accordance with GAAP. In addition, non-GAAP Adjusted EBITDA as presented in this release may not be comparable to similarly titled measures used by other companies.

Due to the forward looking nature of non-GAAP Adjusted EBITDA guidance, PSEG is unable to reconcile this non-GAAP financial measure to the most directly comparable GAAP financial measure. Management is unable to project certain reconciling items, in particular MTM and NDT gains (losses), for future periods due to market volatility.

The forecast range of Power’s 2017 non-GAAP Operating Earnings and non-GAAP Adjusted EBITDA remain unchanged at $435 – $510 million and $1,080 – $1,210 million, respectively.

PSEG Enterprise/Other

PSEG Enterprise/Other reported Net Income of $13 million ($0.02 per share) for the third quarter of 2017 compared to a Net Loss of $67 million ($0.13 per share) for the third quarter of 2016.

Non-GAAP Operating Earnings for the third quarter of 2017 were $13 million ($0.02 per share) compared with non-GAAP Operating Earnings of $19 million ($0.04 per share) during the third quarter of 2016.

The decrease in non-GAAP Operating Earnings year-over-year reflects the absence of certain tax items at PSEG Energy Holdings and Parent recognized in the third quarter of 2016 as well as higher interest expense at the Parent.

The forecast of PSEG Enterprise/Other full year non-GAAP Operating Earnings remains at $35 million.

Financing

PSEG closed the quarter ended September 30, 2017 with $278 million of cash on its balance sheet with debt at the end of the quarter representing approximately 49% of consolidated capital. PSEG Power had debt at the end of the quarter representing 31% of capital.

###

About PSEG:

Public Service Enterprise Group (NYSE: PEG) is a publicly traded diversified energy company with annual revenues of $9.1 billion. Its operating subsidiaries are: Public Service Electric and Gas Company (PSE&G), PSEG Power LLC, and PSEG Long Island.

PSE&G is New Jersey’s oldest and largest regulated gas and electric delivery utility, serving nearly three-quarters of the state’s population. PSE&G is the winner of the ReliabilityOne Award for superior electric system reliability.

PSEG Power LLC is an independent power producer that generates and sells electricity in the PJM, New York and New England wholesale power markets.

Forward-Looking Statement

Certain of the matters discussed in this presentation about our and our subsidiaries’ future performance, including, without limitation, future revenues, earnings, strategies, prospects, consequences and all other statements that are not purely historical constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ materially from those anticipated. 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 “anticipate,” “intend,” “estimate,” “believe,” “expect,” “plan,” “should,” “hypothetical,” “potential,” “forecast,” “project,” variations of such words and similar expressions are intended to identify forward-looking statements. Factors that may cause actual results to differ are often presented with the forward-looking statements themselves. Other factors that could cause actual results to differ materially from those contemplated in any forward-looking statements made by us herein are discussed in filings we make with the United States Securities and Exchange Commission (SEC) including our Annual Report on Form 10-K and subsequent reports on Form 10-Q and Form 8-K. These factors include, but are not limited to:

• fluctuations in wholesale power and natural gas markets, including the potential impacts on the economic viability of our generation units;

• our ability to obtain adequate fuel supply;

• any inability to manage our energy obligations with available supply;

• increases in competition in wholesale energy and capacity markets;

• changes in technology related to energy generation, distribution and consumption and customer usage patterns;

• economic downturns;

• third party credit risk relating to our sale of generation output and purchase of fuel;

• adverse performance of our decommissioning and defined benefit plan trust fund investments and changes in funding requirements;

• changes in state and federal legislation and regulations;

• the impact of pending rate case proceedings;

• regulatory, financial, environmental, health and safety risks associated with our ownership and operation of nuclear facilities;

• adverse changes in energy industry laws, policies and regulations, including market structures and transmission planning;

• changes in federal and state environmental regulations and enforcement;

• delays in receipt of, or an inability to receive, necessary licenses and permits;

• adverse outcomes of any legal, regulatory or other proceeding, settlement, investigation or claim applicable to us and/or the energy industry;

• changes in tax laws and regulations;

• the impact of our holding company structure on our ability to meet our corporate funding needs, service debt and pay dividends;

• lack of growth or slower growth in the number of customers or changes in customer demand;

• any inability of Power to meet its commitments under forward sale obligations;

• reliance on transmission facilities that we do not own or control and the impact on our ability to maintain adequate transmission capacity;

• any inability to successfully develop or construct generation, transmission and distribution projects;

• any equipment failures, accidents, severe weather events or other incidents that impact our ability to provide safe and reliable service to our customers;

• our inability to exercise control over the operations of generation facilities in which we do not maintain a controlling interest;

• any inability to maintain sufficient liquidity;

• any inability to realize anticipated tax benefits or retain tax credits;

• challenges associated with recruitment and/or retention of key executives and a qualified workforce;

• the impact of our covenants in our debt instruments on our operations; and

• the impact of acts of terrorism, cybersecurity attacks or intrusions.

All of the forward-looking statements made in this presentation are qualified by these cautionary statements and we cannot assure you that the results or developments anticipated by management will be realized or even if realized, will have the expected consequences to, or effects on, us or our business, prospects, financial condition, results of operations or cash flows. Readers are cautioned not to place undue reliance on these forward-looking statements in making any investment decision. Forward-looking statements made in this presentation apply only as of the date of this presentation. While we may elect to update forward-looking statements from time to time, we specifically disclaim any obligation to do so, even in light of new information or future events, unless otherwise required by applicable securities laws.

The forward-looking statements contained in this presentation are intended to qualify for the safe harbor provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.

From time to time, PSEG, PSE&G and PSEG Power release important information via postings on their corporate website at http://investor.pseg.com. Investors and other interested parties are encouraged to visit the corporate website to review new postings. The “Email Alerts” link at http://investor.pseg.com may be used to enroll to receive automatic email alerts and/or Really Simple Syndication (RSS) feeds regarding new postings.

Visit PSEG at: www.pseg.com; PSEG blog, Energize!; PSEG My Alerts!

TO FOLLOW AND CONNECT WITH PSEG VIA SOCIAL MEDIA, CLICK ON THE LINKS BELOW:

                                            

PSEG Social Media Channels: PSEG on Facebook; PSEG on Twitter; PSEG on LinkedIn; PSEG on YouTube

Attachment 1

PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED

Consolidating Statements of Operations

(Unaudited, $ millions, except per share data)

	Three Months Ended September 30, 2017
	PSEG			PSEG Enterprise/ Other (a)			PSE&G			PSEG Power
OPERATING REVENUES	$	2,263		$	(119	)	$	1,509		$	873
OPERATING EXPENSES
Energy Costs		638			(254	)		535			357
Operation and Maintenance		680			107			346			227
Depreciation and Amortization		252			7			169			76
Total Operating Expenses		1,570			(140	)		1,050			660
OPERATING INCOME		693			21			459			213
Income from Equity Method Investments		3			—			—			3
Other Income and (Deductions)		56			(1	)		22			35
Other-Than-Temporary Impairments		(5	)		—			—			(5	)
Interest Expense		(100	)		(9	)		(79	)		(12	)
INCOME BEFORE INCOME TAXES		647			11			402			234
Income Tax Benefit (Expense)		(252	)		2			(156	)		(98	)
NET INCOME	$	395		$	13		$	246		$	136
Reconciling Items Excluded from Net Income (b)		22			—			—			22
OPERATING EARNINGS (non-GAAP)	$	417		$	13		$	246		$	158
Earnings Per Share
NET INCOME	$	0.78		$	0.02		$	0.49		$	0.27
Reconciling Items Excluded from Net Income (b)		0.04			—			—			0.04
OPERATING EARNINGS (non-GAAP)	$	0.82		$	0.02		$	0.49		$	0.31
	Three Months Ended September 30, 2016
	PSEG			PSEG Enterprise/ Other (a)			PSE&G			PSEG Power
OPERATING REVENUES	$	2,450		$	(309	)	$	1,684		$	1,075
OPERATING EXPENSES
Energy Costs		866			(317	)		721			462
Operation and Maintenance		776			111			376			289
Depreciation and Amortization		231			8			137			86
Total Operating Expenses		1,873			(198	)		1,234			837
OPERATING INCOME (LOSS)		577			(111	)		450			238
Income from Equity Method Investments		3			—			—			3
Other Income and (Deductions)		39			1			21			17
Other-Than-Temporary Impairments		(5	)		—			—			(5	)
Interest Expense		(99	)		(3	)		(72	)		(24	)
INCOME (LOSS) BEFORE INCOME TAXES		515			(113	)		399			229
Income Tax Benefit (Expense)		(188	)		46			(144	)		(90	)
NET INCOME (LOSS)	$	327		$	(67	)	$	255		$	139
Reconciling Items Excluded from Net Income (Loss) (b)		117			86			—			31
OPERATING EARNINGS (non-GAAP)	$	444		$	19		$	255		$	170
Earnings Per Share
NET INCOME (LOSS)	$	0.64		$	(0.13	)	$	0.50		$	0.27
Reconciling Items Excluded from Net Income (Loss) (b)		0.24			0.17			—			0.07
OPERATING EARNINGS (non-GAAP)	$	0.88		$	0.04		$	0.50		$	0.34

(a) Includes activities at Energy Holdings, PSEG Long Island and the Parent as well as intercompany eliminations.

(b) See Attachments 11 and 12 for details of items excluded from Net Income/(Loss) to compute Operating Earnings (non-GAAP).

Attachment 2

PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED

Consolidating Statements of Operations

(Unaudited, $ millions, except per share data)

	Nine Months Ended September 30, 2017
	PSEG			PSEG Enterprise/ Other (a)			PSE&G			PSEG Power
OPERATING REVENUES	$	6,988		$	(787	)	$	4,689		$	3,086
OPERATING EXPENSES
Energy Costs		2,100			(1,121	)		1,760			1,461
Operation and Maintenance		2,100			325			1,064			711
Depreciation and Amortization		1,721			24			506			1,191
Total Operating Expenses		5,921			(772	)		3,330			3,363
OPERATING INCOME (LOSS)		1,067			(15	)		1,359			(277	)
Income from Equity Method Investments		11			—			—			11
Other Income and (Deductions)		178			6			67			105
Other-Than-Temporary Impairments		(9	)		—			—			(9	)
Interest Expense		(289	)		(25	)		(223	)		(41	)
INCOME (LOSS) BEFORE INCOME TAXES		958			(34	)		1,203			(211	)
Income Tax Benefit (Expense)		(340	)		30			(450	)		80
NET INCOME (LOSS)	$	618		$	(4	)	$	753		$	(131	)
Reconciling Items Excluded from Net Income (Loss) (b)		581			45			—			536
OPERATING EARNINGS (non-GAAP)	$	1,199		$	41		$	753		$	405
Earnings Per Share
NET INCOME (LOSS)	$	1.22		$	(0.01	)	$	1.49		$	(0.26	)
Reconciling Items Excluded from Net Income (Loss) (b)		1.14			0.08			—			1.06
OPERATING EARNINGS (non-GAAP)	$	2.36		$	0.07		$	1.49		$	0.80
	Nine Months Ended September 30, 2016
	PSEG			PSEG Enterprise/ Other (a)			PSE&G			PSEG Power
OPERATING REVENUES	$	6,971		$	(877	)	$	4,746		$	3,102
OPERATING EXPENSES
Energy Costs		2,326			(1,134	)		1,979			1,481
Operation and Maintenance		2,215			298			1,110			807
Depreciation and Amortization		679			22			412			245
Total Operating Expenses		5,220			(814	)		3,501			2,533
OPERATING INCOME (LOSS)		1,751			(63	)		1,245			569
Income from Equity Method Investments		9			—			—			9
Other Income and (Deductions)		100			1			58			41
Other-Than-Temporary Impairments		(25	)		—			—			(25	)
Interest Expense		(288	)		(8	)		(214	)		(66	)
INCOME (LOSS) BEFORE INCOME TAXES		1,547			(70	)		1,089			528
Income Tax Benefit (Expense)		(562	)		39			(393	)		(208	)
NET INCOME (LOSS)	$	985		$	(31	)	$	696		$	320
Reconciling Items Excluded from Net Income (Loss) (b)		211			86			—			125
OPERATING EARNINGS (non-GAAP)	$	1,196		$	55		$	696		$	445
Earnings Per Share
NET INCOME (LOSS)	$	1.94		$	(0.06	)	$	1.37		$	0.63
Reconciling Items Excluded from Net Income (Loss) (b)		0.42			0.17			—			0.25
OPERATING EARNINGS (non-GAAP)	$	2.36		$	0.11		$	1.37		$	0.88

(a) Includes activities at Energy Holdings, PSEG Long Island and the Parent as well as intercompany eliminations.

(b) See Attachments 11 and 12 for details of items excluded from Net Income/(Loss) to compute Operating Earnings (non-GAAP).

Attachment 3

PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED

Capitalization Schedule

(Unaudited, $ millions)

	September 30, 2017			December 31, 2016
DEBT
Commercial Paper and Loans	$	202		$	388
Long-Term Debt*		12,524			11,395
Total Debt		12,726			11,783
STOCKHOLDERS’ EQUITY
Common Stock		4,938			4,936
Treasury Stock		(750	)		(717	)
Retained Earnings		9,140			9,174
Accumulated Other Comprehensive Loss		(204	)		(263	)
Total Stockholders’ Equity		13,124			13,130
Total Capitalization	$	25,850		$	24,913

* Includes current portion of Long-Term Debt

Attachment 4

PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited, $ millions)

	Nine Months Ended September 30,
	2017			2016
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income	$	618		$	985
Adjustments to Reconcile Net Income to Net Cash Flows From Operating Activities		2,116			1,776
NET CASH PROVIDED BY OPERATING ACTIVITIES		2,734			2,761
NET CASH USED IN INVESTING ACTIVITIES		(3,104	)		(3,054	)
NET CASH PROVIDED BY FINANCING ACTIVITIES		225			349
Net Change in Cash and Cash Equivalents		(145	)		56
Cash and Cash Equivalents at Beginning of Period		423			394
Cash and Cash Equivalents at End of Period	$	278		$	450

Attachment 5

PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED

Quarter-over-Quarter EPS Reconciliation

September 30, 2017 vs. September 30, 2016

(Unaudited)

Attachment 6

PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED

Year-over-Year EPS Reconciliation

September 30, 2017 vs. September 30, 2016

(Unaudited)

Attachment 7

PUBLIC SERVICE ELECTRIC & GAS COMPANY

Retail Sales and Revenues

(Unaudited)

September 30, 2017

Electric Sales and Revenues

Sales (millions kWh)	Three Months Ended		Change vs. 2016			Nine Months Ended		Change vs. 2016
Residential		4,239		-13.9	%		10,213		-6.5	%
Commercial & Industrial		7,428		-4.7	%		20,756		-1.3	%
Street Lighting		66		-4.8	%		231		-2.5	%
Interdepartmental		2		-9.5	%		7		-4.4	%
Total		11,735		-8.3	%		31,207		-3.0	%
Revenue ($ millions)
Residential	$	628		-18.6	%	$	1,512		-10.1	%
Commercial & Industrial		507		-6.7	%		1,293		-2.0	%
Street Lighting		16		-3.5	%		49		-1.8	%
Other Operating Revenues*		183		10.8	%		562		11.8	%
Total	$	1,334		-10.8	%	$	3,416		-3.9	%
Weather Data	Three Months Ended		Change vs. 2016			Nine Months Ended		Change vs. 2016
THI Hours - Actual		11,100		-26.7	%		15,484		-18.5	%
THI Hours - Normal		11,720					15,811

* Primarily sales of Non-Utility Generator energy to PJM and Transmission related revenues.

Attachment 8

PUBLIC SERVICE ELECTRIC & GAS COMPANY

Retail Sales and Revenues

(Unaudited)

September 30, 2017

Gas Sold and Transported

Sales (millions therms)*	Three Months Ended		Change vs. 2016			Nine Months Ended		Change vs. 2016
Firm Sales
Residential Sales		90		2.6	%		944		-1.0	%
Commercial & Industrial		99		5.7	%		694		1.8	%
Total Firm Sales		189		4.2	%		1,638		0.2	%
Non-Firm Sales
Commercial & Industrial		292		-57.1	%		979		-37.5	%
Total Non-Firm Sales		292					979
Total Sales		481		-44.2	%		2,617		-18.2	%
Revenue ($ millions)
Residential Sales - Firm	$	26		-13.0	%	$	237		4.1	%
Commercial & Industrial - Firm Sales		18		16.4	%		180		40.5	%
Non-Firm Sales		5		-21.9	%		20		6.0	%
Other Operating Revenues**		42		-1.7	%		129		-0.5	%
Total	$	91		-3.7	%	$	566		12.2	%
Gas Transported	$	84		-10.8	%	$	707		2.7	%
Weather Data	Three Months Ended		Change vs. 2016			Nine Months Ended		Change vs. 2016
Degree Days - Actual		17		1.5	%		2,788		-1.8	%
Degree Days - Normal		28					3,076

* CSG rate included in non-firm sales

** Primarily Appliance Service.

Attachment 9

PSEG POWER LLC

Generation Measures*

(Unaudited)

	GWhr Breakdown Three Months Ended September 30,						GWhr Breakdown Nine Months Ended September 30,
	2017			2016			2017			2016
Nuclear - NJ		5,500			4,151			15,814			13,878
Nuclear - PA		2,709			2,712			8,316			8,387
Total Nuclear		8,209			6,863			24,130			22,265
Fossil - Coal**		1,242			1,493			4,036			3,432
Fossil - Oil & Natural Gas - NJ		2,262			4,234			6,889			10,089
Fossil - Oil & Natural Gas - NY		1,582			1,482			4,027			3,940
Fossil - Oil & Natural Gas - CT		9			38			8			30
Total Oil & Natural Gas		3,853			5,754			10,924			14,059
		13,304			14,110			39,090			39,756
	% Generation by Fuel Type Three Months Ended September 30,						% Generation by Fuel Type Nine Months Ended September 30,
	2017			2016			2017			2016
Nuclear - NJ		41	%		29	%		41	%		35	%
Nuclear - PA		21	%		19	%		21	%		21	%
Total Nuclear		62	%		48	%		62	%		56	%
Fossil - Coal**		9	%		11	%		10	%		9	%
Fossil - Oil & Natural Gas - NJ		17	%		30	%		18	%		25	%
Fossil - Oil & Natural Gas - NY		12	%		11	%		10	%		10	%
Fossil - Oil & Natural Gas - CT		0	%		0	%		0	%		0	%
Total Oil & Natural Gas		29	%		41	%		28	%		35	%
		100	%		100	%		100	%		100	%

* Excludes Solar and Kalaeloa

** Includes Pumped Storage. Pumped Storage accounted for <1% of total generation for the three and nine months ended September 30, 2017 and 2016, respectively.

Attachment 10

PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED

Statistical Measures

(Unaudited)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2017			2016			2017			2016
Weighted Average Common Shares Outstanding (millions)
Basic		505			505			505			505
Diluted		507			508			507			508
Stock Price at End of Period							$	46.25		$	41.87
Dividends Paid per Share of Common Stock	$	0.43		$	0.41		$	1.29		$	1.23
Dividend Yield								3.7	%		3.9	%
Book Value per Common Share							$	26.01		$	26.69
Market Price as a Percent of Book Value								178	%		157	%
Total Shareholder Return		8.5	%		-9.3	%		8.5	%		11.3	%

Attachment 11

PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED

Consolidated Operating Earnings (non-GAAP) Reconciliation

Reconciling Items	Three Months Ended September 30,						Nine Months Ended September 30,
	2017			2016			2017			2016
	($ millions, Unaudited)
Net Income	$	395		$	327		$	618		$	985
(Gain) Loss on Nuclear Decommissioning Trust (NDT) Fund Related Activity, pre-tax (PSEG Power)		(22	)		(4	)		(69	)		4
(Gain) Loss on Mark-to-Market (MTM), pre-tax (a) (PSEG Power)		46			(58	)		—			91
Hudson/Mercer Early Retirement, pre-tax (PSEG Power)		9			114			960			114
Lease Related Activity, pre-tax (PSEG Enterprise/Other)		—			137			77			137
Income Taxes related to Operating Earnings (non-GAAP) reconciling items (b)		(11	)		(72	)		(387	)		(135	)
Operating Earnings (non-GAAP)	$	417		$	444		$	1,199		$	1,196
PSEG Fully Diluted Average Shares Outstanding (in millions)		507			508			507			508
	($ Per Share Impact - Diluted, Unaudited)
Net Income	$	0.78		$	0.64		$	1.22		$	1.94
(Gain) Loss on NDT Fund Related Activity, pre-tax (PSEG Power)		(0.05	)		—			(0.14	)		0.01
(Gain) Loss on MTM, pre-tax (a) (PSEG Power)		0.09			(0.11	)		—			0.18
Hudson/Mercer Early Retirement, pre-tax (PSEG Power)		0.02			0.22			1.89			0.22
Lease Related Activity, pre-tax (PSEG Enterprise/Other)		—			0.27			0.15			0.27
Income Taxes related to Operating Earnings (non-GAAP) reconciling items (b)		(0.02	)		(0.14	)		(0.76	)		(0.26	)
Operating Earnings (non-GAAP)	$	0.82		$	0.88		$	2.36		$	2.36

(a) Includes the financial impact from positions with forward delivery months.

(b) Income tax effect calculated at 40.85% statutory rate, except for lease related activity which is calculated at a combined leveraged lease effective tax rate and NDT related activity which is calculated at the 40.85% statutory rate plus a 20% tax on income (losses) from qualified NDT funds.

Attachment 12

PSEG Power Operating Earnings (non-GAAP) and Adjusted EBITDA (non-GAAP) Reconciliation

Reconciling Items	Three Months Ended September 30,						Nine Months Ended September 30,
	2017			2016			2017			2016
	($ millions, Unaudited)
Net Income (Loss)	$	136		$	139		$	(131	)	$	320
(Gain) Loss on NDT Fund Related Activity, pre-tax		(22	)		(4	)		(69	)		4
(Gain) Loss on MTM, pre-tax (a)		46			(58	)		—			91
Hudson/Mercer Early Retirement, pre-tax		9			114			960			114
Income Taxes related to Operating Earnings (non-GAAP) reconciling items (b)		(11	)		(21	)		(355	)		(84	)
Operating Earnings (non-GAAP)	$	158		$	170		$	405		$	445
Depreciation and Amortization, pre-tax (c)		77			83			256			244
Interest Expense, pre-tax (c) (d)		12			23			40			65
Income Taxes (c)		109			111			275			292
Adjusted EBITDA (non-GAAP)	$	356		$	387		$	976		$	1,046
PSEG Fully Diluted Average Shares Outstanding (in millions)		507			508			507			508

(a) Includes the financial impact from positions with forward delivery months.

(b) Income tax effect calculated at 40.85% statutory rate, except for NDT related activity which is calculated at the 40.85% statutory rate plus a 20% tax on income (losses) from qualified NDT funds.

(c) Excludes amounts related to Operating Earnings (non-GAAP) reconciling items.

(d) Net of capitalized interest.

PSEG Enterprise/Other

Operating Earnings (non-GAAP) Reconciliation

Reconciling Items	Three Months Ended September 30,					Nine Months Ended September 30,
	2017		2016			2017			2016
	($ millions, Unaudited)
Net Income (Loss)	$	13	$	(67	)	$	(4	)	$	(31	)
Lease Related Activity, pre-tax		—		137			77			137
Income Taxes related to Operating Earnings (non-GAAP) reconciling items (a)		—		(51	)		(32	)		(51	)
Operating Earnings (non-GAAP)	$	13	$	19		$	41		$	55
PSEG Fully Diluted Average Shares Outstanding (in millions)		507		508			507			508

(a) Income tax effect calculated at a combined leveraged lease effective tax rate.

EX-99.1

Public Service Enterprise Group

PSEG Earnings Conference Call

3

rd

Quarter 2017

October 31, 2017

EXHIBIT 99.1

Forward-Looking Statements

Certain of the matters discussed in this presentation about our and our subsidiaries’ future performance, including, without limitation, future revenues, earnings, strategies, prospects,

consequences and all other statements that are not purely historical constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such

forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ materially from those anticipated. 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 “anticipate,” “intend,” “estimate,” “believe,” “expect,” “plan,” “should,”

“hypothetical,” “potential,” “forecast,” “project,” variations of such words and similar expressions are intended to identify forward-looking statements. Factors that may cause actual results to differ

are often presented with the forward-looking statements themselves. Other factors that could cause actual results to differ materially from those contemplated in any forward-looking statements

made

by

us

herein

are

discussed

in

filings

we

make

with

the

United

States

Securities

and

Exchange

Commission

(SEC)

including

our

Annual

Report

on

Form

10-K

and

subsequent

reports

on

Form

10-Q and Form 8-K.  These factors include, but are not limited to:

•     fluctuations in wholesale power and natural gas markets, including the potential impacts on the economic viability of our generation units;

•     our ability to obtain adequate fuel supply;

•     any inability to manage our energy obligations with available supply;

•     increases in competition in wholesale energy and capacity markets;

•     changes in technology related to energy generation, distribution and consumption and customer usage patterns;

•     economic downturns;

•     third party credit risk relating to our sale of generation output and purchase of fuel;

•     adverse performance of our decommissioning and defined benefit plan trust fund investments and changes in funding requirements;

•     changes in state and federal legislation and regulations;

•     the impact of pending rate case proceedings;

•     regulatory, financial, environmental, health and safety risks associated with our ownership and operation of nuclear facilities;

•     adverse changes in energy industry laws, policies and regulations, including market structures and transmission planning;

•     changes in federal and state environmental regulations and enforcement;

•     delays in receipt of, or an inability to receive, necessary licenses and permits;

•     adverse outcomes of any legal, regulatory or other proceeding, settlement, investigation or claim applicable to us and/or the energy industry;

•     changes in tax laws and regulations;

•     the impact of our holding company structure on our ability to meet our corporate funding needs, service debt and pay dividends;

•     lack of growth or slower growth in the number of customers or changes in customer demand;

•     any inability of Power to meet its commitments under forward sale obligations;

•     reliance on transmission facilities that we do not own or control and the impact on our ability to maintain adequate transmission capacity;

•     any inability to successfully develop or construct generation, transmission and distribution projects;

•     any

equipment

failures,

accidents,

severe

weather

events

or

other

incidents

that

impact

our

ability

to

provide

safe

and

reliable

service

to

our

customers;

•     our inability to exercise control over the operations of generation facilities in which we do not  maintain a controlling interest;

•     any inability to maintain sufficient liquidity;

•     any inability to realize anticipated tax benefits or retain tax credits;

•     challenges associated with recruitment and/or retention of key executives and a qualified workforce;

•     the impact of our covenants in our debt instruments on our operations; and

•     the impact of acts of terrorism, cybersecurity attacks or intrusions.

All of the forward-looking statements made in this presentation are qualified by these cautionary statements and we cannot assure you that the results or developments anticipated by management

will be realized or even if realized, will have the expected consequences to, or effects on, us or our business, prospects, financial condition, results of operations or cash flows. Readers are

cautioned not to place undue reliance on these forward-looking statements in making any investment decision. Forward-looking statements made in this presentation apply only as of the date of

this presentation. While we may elect to update forward-looking statements from time to time, we specifically disclaim any obligation to do so, even in light of new information or future events,

unless otherwise required by applicable securities laws.

The forward-looking statements contained in this presentation are intended to qualify for the safe harbor provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of

the Securities Exchange Act of 1934, as amended.

1

GAAP Disclaimer

PSEG presents Operating Earnings and Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) in

addition to its Net Income reported in accordance with accounting principles generally accepted in the United States (GAAP).

Operating Earnings and Adjusted EBITDA are non-GAAP financial measures that differ from Net Income. Non-GAAP Operating

Earnings exclude the impact of returns (losses) associated with the Nuclear Decommissioning Trust (NDT), Mark-to-Market (MTM)

accounting and material one-time items.  Non-GAAP Adjusted EBITDA excludes the same items as our non-GAAP Operating

Earnings measure as well as income tax expense, interest expense and depreciation and amortization. The last two slides in this

presentation (Slides A and B) include a list of items excluded from Net Income/(Loss) to reconcile to non-GAAP Operating

Earnings and non-GAAP Adjusted EBITDA with a reference to those slides included on each of the slides where the non-GAAP

information appears.

Management uses non-GAAP Operating Earnings in its internal analysis, and in communications with investors and analysts, as a

consistent measure for comparing PSEG’s financial performance to previous financial results. Management believes non-GAAP

Adjusted EBITDA is useful to investors and other users of our financial statements in evaluating operating performance because it

provides them with an additional tool to compare business performance across companies and across periods. Management also

believes that non-GAAP Adjusted EBITDA is widely used by investors to measure operating performance without regard to items

such as income tax expense, interest expense and depreciation and amortization, which can vary substantially from company to

company depending upon, among other things, the book value of assets, capital structure and whether assets were constructed or

acquired. Non-GAAP Adjusted EBITDA also allows investors and other users to assess the underlying financial performance of our

fleet before management’s decision to deploy capital. The presentation of non-GAAP Operating Earnings and non-GAAP Adjusted

EBITDA is intended to complement, and should not be considered an alternative to, the presentation of Net Income, which is an

indicator of financial performance determined in accordance with GAAP. In addition, non-GAAP Operating Earnings and non-GAAP

Adjusted EBITDA as presented in this release may not be comparable to similarly titled measures used by other companies.

Due to the forward looking nature of non-GAAP Operating Earnings and non-GAAP Adjusted EBITDA guidance, PSEG is unable to

reconcile these non-GAAP financial measures to the most directly comparable GAAP financial measure.  Management is unable to

project certain reconciling items, in particular MTM and NDT gains (losses), for future periods due to market volatility.

These materials and other financial releases can be found on the PSEG website at www.pseg.com, under the Investors tab. From time to time, PSEG, PSE&G and

PSEG Power release important information via postings on their corporate website at http://investor.pseg.com. Investors and other interested parties are encouraged to

visit the corporate website to review new postings. The “email alerts” link at http://investor.pseg.com

may be used to enroll to receive automatic email alerts and/or

really simple syndication (RSS) feeds regarding new postings at http://investor.pseg.com/rss.

2

PSEG

2017 Q3 Review

Ralph Izzo

Chairman, President and Chief Executive Officer

PSEG

Q3

2017

–

Solid

results;

executing

well

on

major

initiatives

Third Quarter Highlights

Net Income of $0.78 vs. Net Income of $0.64 per share in Q3 2016

Non-GAAP Operating Earnings* of $0.82 vs. $0.88 per share in Q3 2016

PSE&G results benefitted from increased investment in electric and gas transmission and distribution

PSEG Power results aided by continued cost control and improved nuclear performance

Unseasonably mild weather weighed on results of both businesses

Operational Excellence

Nuclear fleet achieved a capacity factor of ~96% for Q3 and ~95% for the year-to-date 2017 period

Disciplined Capital Investment

PSE&G investing ~$3.1 billion to upgrade transmission, replace cast-iron pipe and improve the

resilience of electric distribution system in 2017 and PSEG Power investing ~$1.2 billion constructing

three new, highly efficient gas-fired CCGTs

Regulatory & Policy Focus

FERC seeking response to Department of Energy (DOE) proposed rulemaking to preserve the viability

of fuel-secure, base load resources; Reply comments due November 7, 2017

Per Board of Public Utilities (BPU) agreement, PSE&G will delay filing its Distribution Base Rate Case

to no later than December 1, 2017; decision by BPU on Infrastructure Investment Proposal expected

by year-end

* See Slides A and B for Items excluded from Net Income  to reconcile to Operating Earnings (non-GAAP).

4

PSEG Q3 Summary

Quarter ended September 30         

*See Slide A for Items excluded from Net Income to reconcile to Operating Earnings (non-GAAP).

5

$ millions (except EPS)

2017

2016

Change

Net Income

$  395

$  327 

$  68

Reconciling Items

22

117

(95)    

Operating Earnings (non-GAAP)*

$  417

$  444

$  (27)

EPS from Net Income

$  0.78

$  0.64

$  0.14

EPS from Operating Earnings (non-GAAP)*

$  0.82

$  0.88

$  (0.06)

PSEG Year-to-Date Summary

Nine Months ended September 30        

*See Slide A for Items excluded from Net Income to reconcile to Operating Earnings (non-GAAP).

6

$ millions (except EPS)

2017

2016

Change

Net Income

$  618

$  985 

$  (367)

Reconciling Items

581

211

(370)

Operating Earnings (non-GAAP)*

$ 1,199

$ 1,196

$  3

EPS from Net Income

$  1.22

$  1.94

$  (0.72)

EPS from Operating Earnings (non-GAAP)*

$  2.36

$  2.36

$         -

PSEG -

Executing on Regulatory and Policy Initiatives

NJ Distribution Base Rate Proceeding

Agreed to delay rate review filing by one month to no later than December 1, 2017

Long-Term Infrastructure Investment Platform

In July, PSE&G filed for a 5-year, $2.7 billion extension of the Gas System Modernization

Program (GSMP2)

In October, the BPU approved $69 million of PSE&G’s request to extend its investment

in Energy Efficiency (EE)

A final BPU decision on the Infrastructure Investment Program (IIP) providing for 5-year

investment programs expected by year-end

PSE&G preparing a multi-year extension filing for Energy Strong in coming months

PSE&G developing a large, multi-year EE investment program to bring benefits to

a broader group of customers

Preserve the Value of Nuclear Supply

Advocating for legislative strategy to recognize the value of nuclear energy under terms

and conditions that provide proper incentives for long-term operation

Ensure Federal Regulatory and Policy Framework

FERC/PJM considering DOE Notice of Proposed Rulemaking (NOPR) issues of

Price Formation and fuel-secure resource preservation 

7

Growth in utility infrastructure investment drives increased growth

in regulated earnings contribution

$2.80 -

$3.00E

PSEG -

Maintaining 2017 Non-GAAP Earnings Guidance 

$2.90

Non-GAAP Operating Earnings*

Contribution

by

Subsidiary

and

2017

Guidance

2016

2017E**

PSE&G

Power

Enterprise/Other

60%

66%

32%

35%

8

* See Slide A for Items excluded from Net Income to reconcile to Operating Earnings (non-GAAP). 

** Based on the mid-point of 2017 non-GAAP Operating Earnings guidance of $2.80 - $3.00 per share.  E = Estimate.                             

PSEG

2017 Q3 Operating Company Review

Dan Cregg

EVP and Chief Financial Officer

PSEG –

Q3 Results by Subsidiary

GAAP Net Income/(Loss)

2017

2016

Change

PSE&G

$  0.49

$  0.50

$ (0.01)

PSEG Power

$  0.27

$  0.27

$       -

PSEG Enterprise/Other

$  0.02

$(0.13)

$  0.15

Total PSEG

$  0.78

$  0.64

$  0.14

Non-GAAP Operating Earnings*

2017

2016

Change

PSE&G

$  0.49

$  0.50

$  (0.01)

PSEG Power

$  0.31

$  0.34

$  (0.03)

PSEG Enterprise/Other

$  0.02

$  0.04

$  (0.02)   

Total PSEG*

$  0.82

$  0.88

$  (0.06)

*See Slides A and B for Items excluded from Net Income/(Loss) to reconcile to Operating Earnings (non-GAAP) for PSEG, PSEG Power and PSEG

Enterprise/Other.

PSEG Q3 EPS Summary –

Quarter ended September 30

10

PSEG EPS Reconciliation –

Q3 2017 versus Q3 2016

*  See Slide A for Items excluded from Net Income to reconcile to Operating Earnings (non-GAAP).

Q3 2017

Net

Income

Q3 2016       

Net

Income

PSEG

Power

PSE&G**

Enterprise/

Other

Q3 2016

Operating

Earnings

(non-GAAP)*

Q3 2017       

Operating

Earnings

(non-GAAP)*

Utility investment, cost control and mild weather drive Q3 results

Capacity  0.01

Lower

Volume  (0.02)

Recontracting and

Lower

Prices  (0.05)

O&M  0.02

D&A, Interest and

Taxes  0.01

Transmission  0.04

Energy Strong 0.02

Weather  (0.03)

Weather Norm Sales/

Demands  (0.02)

O&M  0.01

D&A  (0.01)

Taxes and Other  (0.02)

Absence of

Tax Benefit

and

Interest

Expense

(0.02)

(0.03)

(0.01)

$0.78

11

$0.64

$0.88

$0.82

$0.00

$0.20

$0.40

$0.60

$0.80

$1.00

** Prior quarter results may not add to year-to-date totals due to rounding.

PSEG –

Year-to-Date Results by Subsidiary

GAAP Net Income/(Loss)

2017

2016

Change

PSE&G

$   1.49

$  1.37

$  0.12

PSEG Power

$ (0.26)

$  0.63

$ (0.89)

PSEG Enterprise/Other

$ (0.01)

$ (0.06)

$  0.05

Total PSEG

$  1.22

$  1.94

$ (0.72)

Non-GAAP Operating Earnings*

2017

2016

Change

PSE&G

$  1.49

$  1.37

$  0.12

PSEG Power

$  0.80

$  0.88

$ (0.08)

PSEG Enterprise/Other

$  0.07

$  0.11

$ (0.04)      

Total PSEG*

$  2.36

$  2.36

$         -

PSEG YTD EPS Summary –

Nine months ended September 30

12

*See Slides A and B for Items excluded from Net Income/(Loss) to reconcile to Operating Earnings (non-GAAP) for PSEG, PSEG Power and PSEG

  Enterprise/Other. 

PSEG EPS Reconciliation –

YTD 2017 versus YTD 2016

•

See Slide A for Items excluded from Net Income to reconcile to Operating Earnings (non-GAAP), Year-to-date columns.

Capacity  0.02

Higher Gas

Send-out  0.02

Lower Volume 

(0.01)

Recontracting and

Lower Prices  (0.18)

O&M  0.07

Transmission  0.11 

Electric and Gas

Weather  (0.03)

Distribution 

O&M  0.03

Distribution

D&A  (0.02)

Taxes and Other 

(0.02)

YTD 2017

Net

Income

YTD 2016

Net

Income

PSEG

Power

PSE&G**

Enterprise/

Other

YTD 2016

Operating

Earnings

(non-GAAP)*

YTD 2017       

Operating

Earnings

(non-GAAP)*

Interest

Expense,

Taxes

and Other

Utility investment and cost control drive year-to-date results

(0.08)

0.12

(0.04)

13

$1.94

$2.36

$2.36

$1.22

Margin  0.05

** Prior quarter results may not add to year-to-date totals due to rounding.

PSE&G

2017 Q3 Review

$0.50

0.01

0.00

$0.49

(0.02)

0.00

0.10

0.20

0.30

0.40

0.50

0.60

0.70

PSE&G EPS Reconciliation –

Q3 2017

versus Q3 2016

Q3 2017      

Net Income

Q3 2016    

Net Income

Transmission   0.04

Energy Strong 0.02

Weather  (0.03)

Weather Norm 

Sales/Demands  (0.02)

O&M  0.01

D&A  (0.01)

Continued investment and cost containment contributed to margin,

offset by mild weather

Absence  of

Tax  Benefit

and Other

15

Prior quarter results may not add to year-to-date totals due to rounding

Q3 2017 weather significantly cooler than Q3 2016 and normal

2017

vs.

2016

vs.

Normal

PSE&G Monthly Weather Summary

July

August

September

Monthly

Temperature

Humidity

Index

(THI)

Q3 2017 temperature-humidity index

was ~27% lower than Q3 2016

and ~5% lower than normal

Total

Hours

at

90°F

or

Higher

Q3 2017 total hours at or above 90°F

were 69% lower than Q3 2016

and 47% lower than normal

16

PSE&G –

Q3 Highlights

PSE&G agreed to delay filing its distribution base rate case by one month to no later than December 1;

Filing will now be based on three months actual and nine months forecasted data

BPU decision on Infrastructure Investment Program (IIP) proposal expected by year-end

Filed for 2018 FERC Formula Rate increase of $212 million to be effective January 1, 2018, reflects

increase in transmission investment and a true-up of prior-year results

Anticipate filing a multi-year, Energy Strong extension and expansion program (ES2) by year-end

Operations

Regulatory and Market

Environment

PSE&G expects to invest approximately $3.1 billion of capital on its infrastructure in 2017, lower than the

plan of $3.4 billion due to a delay in timing on certain projects and better than anticipated efficiencies

PSE&G’s

2017

Net

Income

guidance

range

remains

unchanged

at

$945

-

$985

million

Financial

On a weather normalized basis, total electric sales were down slightly (0.6%) for the quarter and flat

for the trailing 12 months ended September 30 

Q3 2017 weather was ~27% cooler than Q3 2016 and ~5% cooler than normal based on the

Temperature-Humidity Index; hot weather in late September (billed at lower winter rates) was not

enough to offset the mild August

17

PSEG Power

2017 Q3 Review

$0.27

$0.34

0.03

$0.31

$0.27

(0.06)

0.00

0.10

0.20

0.30

0.40

Capacity  0.01

Lower Volume  (0.02)

Recontracting and

Lower Prices  (0.05)

PSEG Power EPS Reconciliation –

Q3 2017 versus Q3 2016

O&M  0.02

D&A, Interest

and Taxes 0.01

* See Slide B for Items excluded from Net Income/(Loss) to reconcile to non-GAAP Operating Earnings for PSEG Power.

Fewer outage-related days and cost control offset lower prices

Q3 2016       

Operating

Earnings*

(non-GAAP)

Q3 2017       

Operating

Earnings*

(non-GAAP)

Q3 2017       

Net

Income

Q3 2016       

Net

Income

19

PSEG Power –

Q3 Generation down 6% in response to mild weather

Total Nuclear

Total Coal**

Natural Gas

* Excludes solar and Kalaeloa.   ** Includes figures for Pumped Storage.

PSEG Power –

Generation (GWh)*

14,110

13,304

PSEG Power –

Capacity Factors (%)

PSEG Power –

Fuel Costs

20

6,863

8,209

1,493

1,242

5,754

3,853

0

5,000

10,000

15,000

2016

2017

Quarter ended

September 30

2016

2017

Combined

Cycle

PJM and NY

73.6%

51.0%

Coal**

PA

69.8%

73.9%

CT

5.4%

1.3%

Nuclear

80.2%

96.1%

Quarter ended

September 30

($ millions)

2016

2017

Gas

$  83

$  63

Coal

$  29

$  27

Total Fossil

$  112

$  90

Nuclear

$  49

$  51

Total Fuel

Cost

$  161

$  141

Total

Generation

(GWh

)

14,110

13,304

$ / MWh

11.41

10.60

PSEG Power –

YTD Generation down 2% in response to mild weather

Total Nuclear

Total Coal**

Natural Gas

* Excludes solar and Kalaeloa.   ** Includes figures for Pumped Storage.

PSEG Power –

Generation (GWh)*

39,756

39,090

PSEG Power –

Capacity Factors (%)

PSEG Power –

Fuel Costs

21

22,265

24,130

3,432

4,036

14,059

10,924

0

10,000

20,000

30,000

40,000

2016

2017

Nine months

ended

September 30

2016

2017

Combined

Cycle

PJM and NY

62.5%

49.3%

Coal**

PA

61.9%

79.6%

CT

3.8%

3.8%

Nuclear

87.5%

95.2%

Nine months

ended September 30

($ millions)

2016

2017

Gas

$  215

$  224

Coal

$  78

$  92

Total Fossil

$  293

$  316

Nuclear

$  154

$  153

Total Fuel

Cost

$  447

$  469

Total

Generation

(GWh)

39,756

39,090

$ / MWh

11.24

12.00

PSEG Power –

Gross Margin Performance

$0

$10

$20

$30

$40

$50

2015

2016

2017

$40

Quarter ended September 30

Mild Summer weather tempered demand, energy prices and generation output

PS Zone basis improved over Q3 2016, despite lower pricing

Capacity revenues up slightly vs. Q3 2016 reflecting a step-up in New England

capacity pricing to $232 MW/day  

Regional spark spreads compressed in the quarter

Regional Performance

Region

Q3 Gross

Margin ($M)

Q3 2017 Performance

PJM

$486

Lower prices and lower generation

influenced by mild Summer weather

New

England

$24

Higher capacity revenues offset lower

generation and lower market prices

New York

$25

Higher generation was offset by

decline in average hedge price 

and market prices

PSEG Power Gross Margin ($/MWh)

$42

$42

22

Hedging Update –

Forecast of output unchanged

Contracted Energy*

* HEDGE PERCENTAGES AND PRICES AS OF SEPTEMBER 30, 2017.  REVENUES OF FULL REQUIREMENT LOAD DEALS BASED ON CONTRACT PRICE, INCLUDING RENEWABLE ENERGY

CREDITS,

ANCILLARY,

AND

TRANSMISSION

COMPONENTS

BUT

EXCLUDING

CAPACITY. HEDGES

INCLUDE

POSITIONS

WITH

MTM

ACCOUNTING

TREATMENT

AND

OPTIONS.

23

Oct-Dec

2017

2018

2019

Volume TWh

8

35

35

Base Load

% Hedged

100%

100%

50-55%

(Nuclear and Base Load Coal)

Price $/MWh

$45

$41

$39

Volume TWh

3

18

25

Intermediate, Combined Cycle,

% Hedged

50-55%

10-15%

0%

Peaking

Price $/MWh

$45

$41

$ -

Volume TWh

10-12

52-54

58-60

Total

% Hedged

85-90%

70-75%

30-35%

Price $/MWh

$45

$41

$39

PSEG Power –

Q3 Highlights

Q3 output down 6% reflecting mild weather and lower energy prices  

Nuclear fleet achieved average capacity factor of 96.1% in Q3, producing 8.2 TWh of energy

CCGT fleet capacity factor was 51.0% versus 73.6% in Q3 2016, reflecting lower demand; CCGT

availability remained strong at ~97% and produced 3.7 TWh of energy

Coal capacity factor up 4% in PA on higher market demand, coal fleet produced 1.2 TWh of energy

Operations

Regulatory and Market

Environment

Financial

Department of Energy support of fuel secure, base load generation directs the Federal Energy Regulatory

Commission to address price formation issues in a timely and constructive manner 

Court actions in New York and Illinois affirm state initiatives in support of baseload nuclear generation    

2017 expected generation output on track for 49-50 TWh; BGS load projected at 11 TWh

Construction on schedule and on budget at Keys and Sewaren 7 for targeted 2018 in-service;

Bridgeport Harbor 5 progressing on schedule and on budget for targeted 2019 operations

Power’s total debt as a percentage of capitalization at September 30 was 31%

Power’s

2017

non-GAAP

Operating

Earnings

guidance

range

remains

unchanged

at

$435

-

$510

million; non-GAAP Adjusted EBITDA guidance for 2017 remains unchanged at $1,080 to $1,210 million

24

PSEG

PSEG Financial Highlights

Reiterating

2017

non-GAAP

Operating

Earnings

guidance

of

$2.80

-

$3.00

per

share

PSE&G earnings forecast to grow 8.5% to comprise 66% of PSEG’s 2017 

non-GAAP Operating Earnings

PSEG’s 5-Year capital spending forecast of $15 billion over 2017 –

2021

to be invested in PSE&G (82%) and Power (18%)

PSE&G successfully executing regulatory/policy initiatives:  Additional capital spend

outlined since the March Investor Conference (GSMP2, upcoming filings for Energy

Strong and Energy Efficiency) provides greater support for achieving the high end

of its five-year, 7 -

9% annual growth in rate base over the 2017-2021 period

PSEG Power’s $2 billion investment in new generation, located in PJM

and New England, will improve fleet efficiency and geographic diversity

Increased 2017 indicative common dividend by 4.9% to $1.72 per share

Financial position remains strong:

Cash from Power and increasing cash flow from operations at PSE&G supports

dividend growth and funds capital spending program without the need to issue equity

Debt as a percentage of capitalization was 49% at September 30

26

PSEG 2017 Guidance -

By Subsidiary -

Unchanged

$ millions (except EPS)

2017E

2016

PSE&G (Net Income)

$945 -

$985

$889

PSEG Power

$435 -

$510

$514

PSEG Enterprise/Other

$35 -

$35

$72

Operating Earnings (non-GAAP)*

$1,415 -

$1,530

$1,475

Operating EPS (non-GAAP)*

$2.80 -

$3.00E

$2.90

Segment Operating Earnings Guidance and Prior Results

(non-GAAP, except as noted)*

$ millions

2017E

2016

PSEG Power

$1,080 -

$1,210

$1,201

PSEG Power Adjusted EBITDA (non-GAAP)*

* See Slide A for Items excluded from Net Income to reconcile to Operating Earnings (non-GAAP) and Slide B for Items excluded from Net Income/(Loss) to reconcile to Operating

Earnings (non-GAAP) and Adjusted EBITDA (non-GAAP).  E = Estimate. 

27

PSEG Liquidity as of September 30, 2017

28

Reconciliation of Non-GAAP Operating Earnings

Please see Slide 2 for an explanation of PSEG’s use of Operating Earnings as a non-GAAP financial measure

and how it differs from Net Income.

A

Reconciliation of Non-GAAP Operating Earnings and Non-GAAP

Adjusted EBITDA

Please see Slide 2 for an explanation of PSEG’s use of Operating Earnings and Adjusted EBITDA as non-GAAP financial measures and how they differ from Net Income/(Loss).

B