Quarterly UPDATE
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4Q & FY 2015
4Q & FY 2015 Performance Update
NYSE: PEG
"We are very pleased with our strong results in 2015. Operating Earnings for the fourth quarter were $0.50 per share versus $0.49 per share in
2014 bringing results for the full year to $2.91 per share, or 5.4% greater than 2014’s operating earnings of $2.76 per share. Continued
successful deployment of strong free cash flow into customer-oriented regulated investment programs is expected to support 14% growth in
PSE&G’s earnings, which will increase the utility’s earnings to 60% of Enterprise’s 2016 Operating Earnings. We are initiating guidance for
2016 Operating Earnings results at $2.80 - $3.00 per share.
PSE&G earnings grew to represent 53% of consolidated operating earnings as its investment in transmission has grown to represent 43% of its
$13.4 billion rate base at year-end 2015. During 2015, PSE&G’s investment program, supportive revenue recovery mechanisms and a tight
control of O&M provided growth in utility operating earnings of ~13% per year for the 5-year period ended 2015 -- as rate base expanded by
11% per year. And, importantly, we have been able to support this growth as customer bills have declined.
PSEG Power’s strong operating performance supported earnings in line with 2015 guidance despite very difficult market conditions. The
nuclear fleet operated at a capacity factor of greater than 90% for the year and accounted for 54% of fleet’s output. Power’s gas-fired
combustion turbine (CCGT) fleet set a new output record. Power's planned investment in new CCGT capacity will transform its generating
mix as its ownership of efficient, reliable gas-fired capacity grows to exceed 5,000 MWs in 2019. And, Power's investment in utility-scale,
contracted solar energy now totals 241 MWs-dc of clean, renewable energy.
With our strong balance sheet, we are in a position to increase our investment across the company to meet the needs of our customers and
shareholders. Our investment program calls for capital spending of $11.5 billion for the three years ended 2018. The Board’s recent decision to
increase the common dividend by 5.1% to the indicative annual level of $1.64 per share is an expression of confidence in our outlook, the
continued growth of our regulated business and an acknowledgment of our strong financial condition."
Ralph Izzo, Chairman, President & CEO - February 19, 2016
PSEG 2016 Guidance - Building on Success
PSEG – 2015 Highlights
A Year of Successful Deployment of Capital and Strong Operating Results
● Delivered Operating Earnings of $2.91 per share, up 5.4% from $2.76 in 2014
--the 3rd consecutive year of growth in EPS
● PSE&G posted 9% earnings growth, representing 53% of consolidated Operating
Earnings, and Power's results were in line with guidance
Continued Operational Excellence
● Power generation up 2% led by record CCGT output and solid nuclear performance
● PSE&G awarded 14th consecutive year as the Mid-Atlantic Region's Most Reliable
Electric Utility and named Electric Light & Power's Utility of the Year for 2015
PSEG Disciplined Capital Investment
● PSEG capital spending forecast of $11.5 billion over 2016-18 up 21% over 2013-15
● PSE&G rate base expected to grow at double-digit rate through 2018
● Power will invest ~$2 billion in new, gas fired combine-cycle generation and
Fossil uprates through 2019
Financial Strength
● Common dividend increased by 5.1% to indicative annual rate of $1.64 per share
for 2016 from $1.56 per share, the 12th increase in the last 13 years
4Q & Full Year 2015 Operating Earnings by Subsidiary
Operating
Earnings
Earnings
per Share (EPS)
$ millions (except EPS)
4Q 2015
PSE&G
$156
$787
$0.31
$1.55
95
653
0.19
1.29
4
36
-
0.07
$255
$1,476
$0.50
$2.91
PSEG Power
PSEG Enterprise/Other
Operating Earnings*
FY 2015
4Q 2015
FY 2015
* See Operating Earnings to GAAP reconciliation on page 2 or at www.pseg.com/info/investors
Public Service Enterprise Group (PSEG)
80 Park Plaza, Newark, NJ 07102
Investor Relations: 973.430.6565
www.pseg.com
2016 Operating Earnings guidance reflects
growth in regulated operations offsetting
commodity market weakness
$3.00E
$2.91
$2.76
per share
2014
Operating
Earnings*
2015
Operating
Earnings*
to
$2.80E
per share
per share
2016
Operating
Earnings*
Guidance
Key Performance Highlights
as of 12/31/2015
Stock Price
$38.69
Dividends Paid per Share (year-to-date)
$1.56
Dividend Yield (%)
Return on Average Common Equity**
4.0%
11.6%
Average Shares Outstanding (in millions)
Book Value Per Common Share
508
$25.86
** Calculation based on Operating Earnings for 12-month period ended.
THIS DOCUMENT CONTAINS FORWARD-LOOKING INFORMATION. ACTUAL RESULTS MAY DIFFER FROM THOSE ANTICIPATED. INFORMATION
DESCRIBING THE SIGNIFICANT FACTORS THAT COULD CAUSE RESULTS TO DIFFER FROM THOSE ANTICIPATED ARE DESCRIBED IN PUBLIC
SERVICE ENTERPRISE GROUP’S FILINGS WITH THE SEC, WHICH ARE AVAILABLE ON OUR WEBSITE WWW.PSEG.COM. INFORMATION
PROVIDED IS AS OF FEBRUARY 19, 2016. ANY FORWARD-LOOKING STATEMENTS INCLUDED HEREIN REPRESENT OUR ESTIMATES AS
OF THIS DATE, AND WE DISCLAIM ANY OBLIGATION TO UPDATE THE INFORMATION PROVIDED. E=ESTIMATE
4Q & FY 2015
We make things work for you.
GAAP Disclaimer
PSEG presents Operating Earnings in addition to its Net Income reported in accordance with accounting
principles generally accepted in the United States (GAAP). Operating Earnings is a non-GAAP financial
measure that differs from Net Income because it excludes gains or losses associated with Nuclear
Decommissioning Trust (NDT), Mark-to-Market (MTM) accounting, and other material one-time items. PSEG
presents Operating Earnings because management believes that it is appropriate for investors to consider
results excluding these items in addition to the results reported in accordance with GAAP. PSEG believes
that the non-GAAP financial measure of Operating Earnings provides a consistent and comparable
measure of performance of its businesses to help shareholders understand performance trends. This
information is not intended to be viewed as an alternative to GAAP information. The last slide in this
presentation includes a list of items excluded from Net Income to reconcile to Operating Earnings, with a
reference to that slide included on each of the slides where the non-GAAP information appears.
These materials and other financial releases can be found on the pseg.com website under the investor
tab, or at http://investor.pseg.com/
Items Excluded from Net income to Reconcile to Operating Earnings
Public Service Enterprise Group (PSEG)
80 Park Plaza, Newark, NJ 07102
Investor Relations: 973.430.6565
www.pseg.com
THIS DOCUMENT CONTAINS FORWARD-LOOKING INFORMATION. ACTUAL RESULTS MAY DIFFER FROM THOSE ANTICIPATED. INFORMATION
DESCRIBING THE SIGNIFICANT FACTORS THAT COULD CAUSE RESULTS TO DIFFER FROM THOSE ANTICIPATED ARE DESCRIBED IN PUBLIC
SERVICE ENTERPRISE GROUP’S FILINGS WITH THE SEC, WHICH ARE AVAILABLE ON OUR WEBSITE WWW.PSEG.COM. INFORMATION
PROVIDED IS AS OF FEBRUARY 19, 2016. ANY FORWARD-LOOKING STATEMENTS INCLUDED HEREIN REPRESENT OUR ESTIMATES AS OF
THIS DATE, AND WE DISCLAIM ANY OBLIGATION TO UPDATE THE INFORMATION PROVIDED. E=ESTIMATE