PSEG Announces 2004 Results: $3.05 per Share From Continuing
Operations Fourth Quarter Results of 38 Cents Per Share Reflect
Impact of Outages at Hope Creek and Salem Stations NEWARK, N.J.,
Feb. 3 /PRNewswire-FirstCall/ -- Public Service Enterprise Group
(PSEG) announced today (February 3) that earnings from continuing
operations for the year 2004 were $726 million or $3.05 per share
of common stock, based on 238 million average shares outstanding.
These results exclude income of $5 million or 2 cents per share
related to discontinued operations at PSEG Energy Holdings.
Including this item, PSEG's net income for 2004 was $731 million or
$3.07 per share of common stock. For 2003, comparable earnings from
continuing operations were $852 million or $3.72 per share of
common stock, based on 229 million average shares outstanding.
Including the effects of the adoption of a new accounting standard
for asset retirement obligations at PSEG Power, losses associated
with discontinued operations at PSEG Energy Holdings and an
extraordinary loss at Public Service Electric and Gas (PSE&G)
due to the finalization of the electric base rate case, 2003 net
income was $1.16 billion or $5.07 per share of common stock. PSEG
also announced today that earnings for the fourth quarter of 2004
were $92 million or 38 cents per share, based on 239 million
average shares outstanding. Comparatively, PSEG's earnings from
continuing operations for the fourth quarter of 2003 were $164
million or 69 cents per share of common stock, based on 236 million
average shares outstanding. Including the effect of discontinued
operations at PSEG Energy Holdings, fourth quarter 2003 net income
was $139 million or 59 cents per share. Attachments to this release
provide a summary of fourth quarter and year- to-date results for
2004 and 2003 and other related information. Additional details
will be included in PSEG's Annual Report on Form 10-K, which is
expected to be filed with the Securities and Exchange Commission
(SEC) later in the month. Fourth Quarter 2004 Results E. James
Ferland, chairman and chief executive officer, said PSEG's
fourth-quarter 2004 results from continuing operations declined by
31 cents per share, compared to fourth-quarter 2003 results,
largely because of a lower contribution from PSEG Power. "For the
quarter, PSEG Power spent over $65 million or 27 cents per share on
operation and maintenance expenses and replacement power costs for
the Hope Creek outage expansion," Ferland said. "The Hope Creek
unit was held off line longer than planned for evaluation of a
reactor recirculation pump. Extensive studies confirmed the plant
would be safe to operate and with the concurrence of the Nuclear
Regulatory Commission (NRC), Hope Creek was returned to service in
January," Ferland explained. In an unrelated matter in early
December, Ferland said, the two Salem units were taken off line due
to an oil spill from a tanker upstream on the Delaware River. The
units, which draw river water for cooling purposes, were shut down
for about two weeks as a precautionary measure to avoid intake of
the spilled oil. The cost of replacement power for the period was
about $18 million, or 8 cents per share. Ferland indicated that
replacement power costs were higher than they would have otherwise
been because of overlapping outages at Hope Creek and Salem.
Ferland said one offset to PSEG Power's unanticipated nuclear costs
in the quarter were improved results from PSEG Energy Resources
& Trade (ER&T). "We had a slow start this year, but with
more favorable markets in the fourth quarter, we clearly benefited
from the scope of the products we manage within ER&T. Results
for the quarter were $31 million, or 13 cents per share higher than
the comparable quarter last year. Full-year results for ER&T
were in line with our mid-year update." Results from PSE&G were
up three cents per share compared to the fourth quarter of 2003,
primarily due to reduced interest expense. PSEG Energy Holdings
reported quarterly earnings that were two cents per share lower
than comparable 2003 results. At PSEG Global, the strengthening of
the Polish Zloty negatively impacted the non-US dollar denominated
project debt by about $14 million or 6 cents for the quarter. The
currency loss recorded on the debt will be offset over time by the
increase in the value of the Polish Zlotys that will be received
under the Power Purchase Agreement. The negative impact at PSEG
Global was partially offset by improved results at PSEG Resources.
At the parent level, PSEG had costs of $5 million or 2 cents per
share related to its proposed merger with Exelon Corporation. On
December 20, 2004 the two companies announced an agreement to merge
contingent upon regulatory and shareholder approvals. Ferland said
the simultaneous outages at Hope Creek and Salem in December,
combined with the stronger Polish Zloty at PSEG Global, made it a
particularly tough quarter for PSEG. Full Year 2004 Results For the
full year, PSE&G reported earnings from continuing operations
of $342 million or $1.44 per share, an increase of 38 cents per
share over comparable 2003 results. Most of this increase was the
result of the electric base rate increase that was effective in
August 2003. This increase was partially offset at PSEG Power with
the elimination of $66 million or 29 cents per share in MTC
revenues that ended when the new electric base rates became
effective. In addition to the MTC revenue loss, Power reported full
year results from continuing operations that were about $100
million or 49 cents per share lower than 2003. This was primarily
the result of the additional work at Hope Creek during the fourth
quarter and replacement power costs throughout the year at various
fossil and nuclear units. For the full year Power reported earnings
of $308 million or $1.29 per share. Energy Holdings reported income
from continuing operations of $125 million or 52 cents per share
for the year, a reduction of 21 cents from comparable 2003 results.
About half this decline was due to the strengthening of the Polish
Zloty during the fourth quarter and other foreign currency impacts
throughout the year. Year-over-year earnings were also reduced as a
result of a lower ownership in GWF Energy in 2004. At PSEG
Resources, the termination of the Collins lease agreement in the
first quarter resulted in the loss of expected earnings throughout
the year and a partial write-off of the investment. This was offset
during the year by improved lease earnings and gains on the KKR
portfolio. 2005 Outlook In discussing the outlook for 2005, Ferland
reiterated previously announced earnings guidance of $3.15 to $3.35
per share. He said expectations for PSEG's major businesses are:
PSEG Power - $335 to $385 million, PSE&G - $325 to $345
million, and Energy Holdings - $135 to $155 million for the year.
He said these projected earnings "comfortably support" PSEG's
increase in its quarterly common stock dividend from 55 cents to 56
cents per share, which was approved by the Board of Directors on
January 18, 2005. This increase is indicative of an annual dividend
of $2.24 per share. "In general, our businesses remain
fundamentally strong," Ferland said. "In particular, we expect
improved performance at our Salem and Hope Creek facilities in the
coming year due to the major maintenance activities we completed
during 2004 and from the implementation, in January 2005, of a
nuclear services operating contract with Exelon." Ferland added
that the proposed merger with Exelon creates a company with
characteristics that neither company could create on its own.
"Exelon's nuclear expertise, and merger integration skills are of
special interest to us, while PSE&G's excellence in
transmission and distribution operations, as well as its
experiences in the development of the BGS auction process will add
considerable value to the Exelon business model." It is expected
that the transaction will close in the first quarter of 2006.
Forward Looking Statement This filing contains forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. Such statements include, but are not limited
to, statements about the benefits of the business combination
transaction involving Public Service Enterprise Group Incorporated
and Exelon Corporation, including future financial and operating
results, the combined company's plans, objectives, expectations and
intentions and other statements that are not historical or current
facts. Such statements are based upon the current beliefs and
expectations of Public Service Enterprise Group Incorporated's and
Exelon Corporation's management, are subject to significant risks
and uncertainties and may differ materially from actual future
experience involving any one or more of such matters. Actual
results may differ from those set forth in the forward-looking
statements. The following factors, among others, could cause actual
results to differ from those set forth in the forward-looking
statements: the timing of the contemplated merger and the impact of
any conditions imposed by regulators in connection with their
approval thereof; the failure of Public Service Enterprise Group
Incorporated and Exelon Corporation stockholders to make the
requisite approvals for the transaction; the risk that the
businesses will not be integrated successfully; failure to quickly
realize cost-savings from the transaction as a result of technical,
logistical, competitive and other factors; the effects of weather;
the performance of generating units and transmission systems; the
availability and prices for oil, gas, coal, nuclear fuel, capacity
and electricity; changes in the markets for electricity and other
energy-related commodities; changes in the number of participants
and the risk profile of such participants in the energy marketing
and trading business; the effectiveness of our risk management and
internal controls systems; the effects of regulatory decisions and
changes in law; changes in competition in the markets we serve; the
ability to recover regulatory assets and other potential stranded
costs; the outcomes of litigation and regulatory proceedings or
inquiries; the timing and success of efforts to develop domestic
and international power projects; conditions of the capital markets
and equity markets; advances in technology; changes in accounting
standards; changes in interest rates and in financial and foreign
currency markets generally; the economic and political climate and
growth in the areas in which we conduct our activities; and changes
in corporate strategies. While we believe that our forecasts and
assumptions are reasonable, we caution that actual results may
differ materially. We intend the forward-looking statements to
speak only as of the time first made and we do not undertake to
update or revise them as more information becomes available.
Additional factors that could cause Public Service Enterprise Group
Incorporated's and Exelon Corporation's results to differ
materially from those described in the forward-looking statements
can be found in the 2003 Annual Reports on Form 10-K, and Quarterly
Reports on Form 10-Q for the quarterly period ended September 30,
2004, and the current reports on Form 8-K filed on December 21,
2004, and December 20, 2004, of Public Service Enterprise Group
Incorporated and Exelon Corporation, as such reports may have been
amended, each filed with the Securities and Exchange Commission and
available at the Securities and Exchange Commission's website,
http://www.sec.gov/. Additional Information This communication is
not a solicitation of a proxy from any security holder of Exelon
Corporation or Public Service Enterprise Group Incorporated. Exelon
will file a Registration Statement on Form S-4 with the SEC
containing a preliminary joint proxy statement/prospectus regarding
the proposed transaction involving Exelon Corporation and Public
Service Enterprise Group Incorporated. We urge investors and
security holders to read the definitive joint proxy
statement/prospectus regarding the proposed transaction and any
other relevant documents when they become available, because they
will contain important information about Exelon, PSEG and the
proposed merger. Investors and security holders will be able to
obtain these materials (when they are available) and other
documents filed with the SEC free of charge at the SEC's website
(http://www.sec.gov/). In addition, a copy of the definitive joint
proxy statement/prospectus (when it becomes available) may be
obtained free of charge from Exelon, Shareholder Services, 10 South
Dearborn Street, P.O. Box 805398, Chicago, Illinois 60680-5398, or
from PSEG, Investor Relations, 80 Park Plaza,. P.O. Box 1171,
Newark, New Jersey 07101-1171. Information regarding Exelon's and
PSEG's directors and executive officers and other participants in
the proxy solicitation and a description of their direct and
indirect interests, by security holdings or otherwise, will be
available in the preliminary joint proxy statement/prospectus
contained in the above-referenced Registration Statement on Form
S-4. PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED (Unaudited) For
the Quarters For the Years Ended Ended December 31, December 31,
2004 2003 2004 2003 Earnings Results (in Millions) Income from
Continuing Operations (Note 1) PSE&G $64 $54 $342 $243 PSEG
Power 16 78 308 474 PSEG Energy Holdings PSEG Global 2 23 70 104
PSEG Resources 34 17 65 66 PSEG Energy Holdings (3) (1) (10) (4)
Total PSEG Energy Holdings 33 39 125 166 PSEG (21) (7) (49) (31)
Income from Continuing Operations $92 $164 $726 $852 Income (Loss)
from Discontinued Operations, including Gain (Loss) on Disposal -
(25) 5 (44) Extraordinary Item - - - (18) Cumulative Effect of a
Change in Accounting Principle - - - 370 PSEG Net Income $92 $139
$731 $1,160 Fully Diluted Average Shares Outstanding (in Millions)
239 236 238 229 Per Share Results (Diluted) Income from Continuing
Operations PSE&G $0.26 $0.23 $1.44 $1.06 PSEG Power 0.07 0.33
1.29 2.07 PSEG Energy Holdings PSEG Global 0.01 0.10 0.29 0.46 PSEG
Resources 0.14 0.07 0.27 0.29 PSEG Energy Holdings (0.01) (0.01)
(0.04) (0.02) Total PSEG Energy Holdings 0.14 0.16 0.52 0.73 PSEG
(0.09) (0.03) (0.20) (0.14) Income from Continuing Operations $0.38
$0.69 $3.05 $3.72 Income (Loss) from Discontinued Operations,
including Gain (Loss) on Disposal - (0.10) 0.02 (0.19)
Extraordinary Item - - - (0.08) Cumulative Effect of a Change in
Accounting Principle - - - 1.62 PSEG Net Income (Note 2) $0.38
$0.59 $3.07 $5.07 Note 1: Income from Continuing Operations
includes preferred stock dividends / preference units distributions
relating to PSE&G of $1 million and $1 million, PSEG Global of
$3 million and $4 million and PSEG Resources of zero and $2 million
for the quarters ended December 31, 2004 and 2003, respectively.
Income from Continuing Operations includes preferred stock
dividends / preference units distributions relating to PSE&G of
$4 million and $4 million, PSEG Global of $13 million and $17
million and PSEG Resources of $3 million and $6 million for the
years ended December 31, 2004 and 2003, respectively. Note 2: Basic
Earnings per Share from Net Income was $0.39 and $0.59 per share
for the quarters ended December 31, 2004 and 2003, respectively.
Basic Earnings per Share from Net Income was $3.08 and $5.08 per
share for the years ended December 31, 2004 and 2003, respectively.
PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED CONSOLIDATING
STATEMENT OF OPERATIONS For the Quarter Ended December 31, 2004
(Unaudited, $ Millions) PSEG PSEG ENERGY PSEG OTHER PSE&G POWER
HOLDINGS (Note 2) OPERATING REVENUES $2,731 $(683) $1,736 $1,352
$326 OPERATING EXPENSES Energy Costs 1,555 (682) 1,081 1,010 146
Operation and Maintenance 645 (1) 286 285 75 Depreciation and
Amortization 184 4 130 34 16 Taxes Other Than Income Taxes 36 - 36
- - Total Operating Expenses 2,420 (679) 1,533 1,329 237 Income
from Equity Method Investments 37 - - - 37 OPERATING INCOME (LOSS)
348 (4) 203 23 126 Other Income 26 (6) 2 26 4 Other Deductions (30)
2 - (11) (21) Interest Expense (209) (27) (89) (34) (59) Preferred
Securities Dividends (1) 3 (1) - (3) INCOME (LOSS) FROM CONTINUING
OPERATIONS BEFORE INCOME TAXES (Note 1) 134 (32) 115 4 47 Income
Tax (Expense) Benefit (42) 11 (51) 12 (14) NET INCOME (LOSS) $92
$(21) $64 $16 $33 For the Quarter Ended December 31, 2003
(Unaudited, $ Millions) PSEG PSEG ENERGY PSEG OTHER PSE&G POWER
HOLDINGS (Note 2) OPERATING REVENUES $2,665 $(528) $1,720 $1,287
$186 OPERATING EXPENSES Energy Costs 1,458 (529) 1,080 866 41
Operation and Maintenance 593 (5) 277 262 59 Depreciation and
Amortization 167 4 122 28 13 Taxes Other Than Income Taxes 35 - 35
- - Total Operating Expenses 2,253 (530) 1,514 1,156 113 Income
from Equity Method Investments 31 - - - 31 OPERATING INCOME 443 2
206 131 104 Other Income 62 3 (8) 55 12 Other Deductions (30) (4) -
(24) (2) Interest Expense (221) (28) (100) (32) (61) Preferred
Securities Dividends (1) 6 (1) - (6) INCOME (LOSS) FROM CONTINUING
OPERATIONS BEFORE INCOME TAXES (Note 1) 253 (21) 97 130 47 Income
Tax (Expense) Benefit (89) 14 (43) (52) (8) INCOME (LOSS) FROM
CONTINUING OPERATIONS 164 (7) 54 78 39 Loss from Discontinued
Operations, net of tax (25) - - - (25) NET INCOME (LOSS) $139 $(7)
$54 $78 $14 Note 1: Income from Continuing Operations before Income
Taxes includes preferred stock dividends / preference units
distributions relating to PSE&G of $1 million and $1 million,
PSEG Global of $3 million and $4 million and PSEG Resources of $0
and $2 million for Note 2: Primarily includes financing activities
at the parent and intercompany eliminations. PUBLIC SERVICE
ENTERPRISE GROUP INCORPORATED CONSOLIDATING STATEMENT OF OPERATIONS
For the Year Ended December 31, 2004 (Unaudited, $ Millions) PSEG
PSEG ENERGY PSEG OTHER PSE&G POWER HOLDINGS (Note 2) OPERATING
REVENUES $10,996 $(2,176) $6,972 $5,173 $1,027 OPERATING EXPENSES
Energy Costs 6,057 (2,173) 4,284 3,558 388 Operation and
Maintenance 2,259 (29) 1,083 967 238 Depreciation and Amortization
718 18 523 121 56 Taxes Other Than Income Taxes 139 - 139 - - Total
Operating Expenses 9,173 (2,184) 6,029 4,646 682 Income from Equity
Method Investments 129 - - - 129 OPERATING INCOME 1,952 8 943 527
474 Other Income 176 (6) 12 166 4 Other Deductions (93) (1) (1)
(57) (34) Interest Expense (859) (100) (362) (142) (255) Preferred
Securities Dividends (4) 16 (4) - (16) INCOME (LOSS) FROM
CONTINUING OPERATIONS BEFORE INCOME TAXES (Note 1) 1,172 (83) 588
494 173 Income Tax (Expense) Benefit (446) 34 (246) (186) (48)
INCOME (LOSS) FROM CONTINUING OPERATIONS 726 (49) 342 308 125
Income from Discontinued Operations, including Gain on Disposal,
net of tax 5 - - - 5 NET INCOME (LOSS) $731 $(49) $342 $308 $130
For the Year Ended December 31, 2003 (Unaudited, $ Millions) PSEG
PSEG ENERGY PSEG OTHER PSE&G POWER HOLDINGS (Note 2) OPERATING
REVENUES $11,139 $(1,939) $6,740 $5,613 $725 OPERATING EXPENSES
Energy Costs 6,391 (1,939) 4,421 3,754 155 Operation and
Maintenance 2,120 (20) 1,050 914 176 Depreciation and Amortization
527 9 372 102 44 Taxes Other Than Income Taxes 136 - 136 - - Total
Operating Expenses 9,174 (1,950) 5,979 4,770 375 Income from Equity
Method Investments 114 - - - 114 OPERATING INCOME 2,079 11 761 843
464 Other Income 178 3 6 149 20 Other Deductions (101) (4) (1) (78)
(18) Interest Expense (836) (114) (390) (114) (218) Preferred
Securities Dividends (4) 23 (4) - (23) INCOME (LOSS) FROM
CONTINUING OPERATIONS BEFORE INCOME TAXES (Note 1) 1,316 (81) 372
800 225 Income Tax (Expense) Benefit (464) 50 (129) (326) (59)
INCOME (LOSS) FROM CONTINUING OPERATIONS 852 (31) 243 474 166 Loss
from Discontinued Operations, including Loss on Disposal, net of
tax (44) - - - (44) INCOME (LOSS) BEFORE EXTRAORDINARY ITEM AND
CUMULATIVE EFFECT OF A CHANGE IN ACCOUNTING PRINCIPLE 808 (31) 243
474 122 Extraordinary Item, net of tax (18) - (18) - - Cumulative
Effect of a Change in Accounting Principle, net of tax 370 - - 370
- NET INCOME (LOSS) $1,160 $(31) $225 $844 $122 Note 1: Income from
Continuing Operations before Income Taxes includes preferred stock
dividends / preference units distributions relating to PSE&G of
$4 million and $4 million, PSEG Global of $13 million and $17
million and PSEG Resources of $3 million and $6 mi Note 2:
Primarily includes financing activities at the parent and
intercompany eliminations. PUBLIC SERVICE ENTERPRISE GROUP
INCORPORATED CAPITALIZATION SCHEDULE (Unaudited, $ Millions)
December 31, December 31, 2004 2003 DEBT Commercial Paper and Loans
$638 $299 Long-Term Debt, including amounts due within one year
8,588 8,473 Securitization Debt, including amounts due within one
year 2,085 2,222 Project Level, Non-Recourse Debt, including
amounts due within one year 1,437 1,777 Debt Supporting Trust
Preferred Securities 1,201 1,201 Total Debt 13,949 13,972
SUBSIDIARY'S PREFERRED SECURITIES 80 80 COMMON STOCKHOLDERS' EQUITY
Common Stock 4,569 4,490 Treasury Stock (978) (981) Retained
Earnings 2,430 2,221 Accumulated Other Comprehensive Loss (277)
(201) Total Common Stockholders' Equity 5,744 5,529 Total
Capitalization $19,773 $19,581 PUBLIC SERVICE ENTERPRISE GROUP
INCORPORATED CONDENSED STATEMENTS OF CASH FLOWS (Unaudited, $
Millions) For the Years Ended December 31, 2004 2003 CASH FLOWS
FROM OPERATING ACTIVITIES Net Income $731 $1,160 Adjustments to
Reconcile Net Income to Net Cash Flows From Operating Activities
909 250 Net Cash Provided By Operating Activities 1,640 1,410 CASH
FLOWS USED IN INVESTING ACTIVITIES (793) (1,412) CASH FLOWS (USED
IN) PROVIDED BY FINANCING ACTIVITIES (1,021) 302 Effect of Exchange
Rate Change 1 2 Net (Decrease)/Increase in Cash and Cash
Equivalents (173) 302 Cash and Cash Equivalents at Beginning of
Period 452 150 Cash and Cash Equivalents at End of Period $279 $452
PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED Quarter-to-Quarter EPS
Reconciliation December 31, 2004 vs. December 31, 2003 (Unaudited)
PSEG 4th Quarter 2003 Net Income $0.59 Loss from Discontinued
Operations (Global's Investment in CPC) 0.10 PSEG 4th Quarter 2003
Income from Continuing Operations $0.69 PSE&G B/(W) 4th Quarter
2003 $0.23 Weather 0.01 Other 0.02 4th Quarter 2004 $0.26 $0.03
PSEG Power 4th Quarter 2003 $0.33 Hope Creek (Replacement Power and
O&M) (0.27) Other Replacement Power (0.08) Operating Margins
0.04 O&M and Depreciation 0.03 Lower NDT Income (0.05) Other
0.07 4th Quarter 2004 $0.07 $(0.26) PSEG Energy Holdings 4th
Quarter 2003 $0.16 Global Operations (Accounting f/x losses at
Elcho and lower ownership percentage at GWF Energy) (0.09)
Resources Operations (stronger results from lease portfolio due to
state tax benefits, KKR gains, lower interest costs due to lower
debt, offset by loss of earnings due to termination of EME-Collins
Lease) 0.07 Energy Holdings (Parent) - 4th Quarter 2004 $0.14
$(0.02) Public Service Enterprise Group 4th Quarter 2003 $(0.03)
Interest Expense, Merger Expenses ($0.02) (0.06) 4th Quarter 2004
$(0.09) $(0.06) PSEG 4th Quarter 2004 Income from Continuing
Operations $0.38 PSEG 4th Quarter 2004 Net Income $0.38 PUBLIC
SERVICE ENTERPRISE GROUP INCORPORATED YTD-to-YTD EPS Reconciliation
December 31, 2004 vs. December 31, 2003 (Unaudited) PSEG Net Income
for the Year Ended December 31, 2003 $5.07 Loss from Discontinued
Operations (ET and Global's investments in CPC) 0.19 Extraordinary
Loss (relating to rate case at PSE&G) 0.08 Cumulative Effect of
a Change in Accounting Principle (adoption of Asset Retirement
Obligation at PSEG Power) (1.62) PSEG Income from Continuing
Operations for the Year Ended December 31, 2003 $3.72 PSE&G
B/(W) Year Ended December 31, 2003 $1.06 Electric Rate Case 0.36
Weather (0.05) Electric Demand and Volume Margin Increase 0.05
Interest Savings 0.08 Additional Shares Outstanding (2003 Issuance,
DRIP) (0.06) Year Ended December 31, 2004 $1.44 $0.38 PSEG Power
Year Ended December 31, 2003 $2.07 MTC (ended August 2003) (0.29)
Hope Creek (Replacement Power and O&M) (0.34) Replacement Power
(0.15) Higher Operating Margins 0.07 O&M and Depreciation
(0.10) Interest Expense (0.04) NDT Income 0.05 Other 0.07
Additional Shares Outstanding (2003 Issuance, DRIP) (0.05) Year
Ended December 31, 2004 $1.29 $(0.78) PSEG Energy Holdings Year
Ended December 31, 2003 $0.73 Global Operations (Accounting f/x
losses at Elcho, lower ownership percentage at GWF Energy, lower
margins at Electroandes, offset by gains on the partial sale of
LDS) (0.16) Additional Shares Outstanding (2003 Issuance, DRIP)
(0.01) (0.17) Resources Operations (stronger results from lease
portfolio due to state tax benefits, KKR gains, lower interest
costs due to lower debt, offset by impact of termination of
EME-Collins Lease) (0.01) Additional Shares Outstanding (2003
Issuance, DRIP) (0.01) (0.02) Energy Holdings (Parent) (0.02) Year
Ended December 31, 2004 $0.52 $(0.21) Public Service Enterprise
Group Year Ended December 31, 2003 $(0.14) Interest Expense, Merger
Expenses ($0.02) (0.06) Year Ended December 31, 2004 $(0.20)
$(0.06) PSEG Income from Continuing Operations for the Year Ended
December 31, 2004 $3.05 Income from Discontinued Operations
(Global's gain on sale of CPC) 0.02 PSEG Net Income for the Year
Ended December 31, 2004 $3.07 PSEG Global L.L.C. Investment Results
(Unaudited, $ Millions) For the Quarter For the Year As of Ended
Ended December 31, December 31, December 31, 2004 2004 2004 Non-
Non-Recourse Recourse Capital At Interest Interest Region Risk (A)
EBIT (B) (C) EBIT(B) (C) North America $427 $7 $6 $98 $13 South
America 1,585 37 19 138 33 Asia Pacific (D) 6 41 - 54 - Europe (E)
209 (1) 9 24 33 India and Oman 95 5 3 20 15 Global G&A -
Unallocated - (8) - (30) - Total $2,322 $81 $37 $304 $94 For the
Quarter For the Year As of Ended Ended December 31, December 31,
December 31, 2003 2003 2003 Non- Non-Recourse Recourse Capital At
Interest Interest Region Risk (A) EBIT (B) (C) EBIT(B) (C) North
America $423 $13 $1 $117 $2 South America 1,575 40 15 150 27 Asia
Pacific (D) 180 1 - 8 - Europe (E) 285 11 5 22 5 India and Oman 91
4 4 9 9 Global G&A - Unallocated - (7) - (30) - Total $2,554
$62 $25 $276 $43 Reconciliation of EBIT to Income from Continuing
Operations For the Quarters Ended For the Years Ended December 31,
December 31, December 31, December 31, 2004 2003 2004 2003 Total
Global EBIT $81 $62 $304 $276 Interest Expense (47) (35) (170)
(119) Income Taxes (D) (31) 2 (50) (23) Minority Interest 2 (2) (1)
(13) Preference Units Distributions (3) (4) (13) (17) Income from
Continuing Operations $2 $23 $70 $104 (A) Total Capital at Risk
includes PSEG Global's gross investments and equity commitment
guarantees less non-recourse debt at the project level. (B) For
investments accounted for under the equity method of accounting,
includes PSEG Global's share of net earnings, including interest
expense and income taxes. (C) Non-Recourse Interest is interest
expense on debt that is non- recourse to PSEG Global. (D) The
differences in EBIT and Capital at Risk for Asia Pacific and Income
Taxes are primarily due to the sale of MPC, which closed on
December 31, 2004. (E) Exclusive of minority interest, foreign
currency exchange losses at ELCHO were $24 million and $5 million
for the quarters ended December 31, 2004 and 2003, respectively and
$28 million and $2 million for the years ended December 31, 2004
and 2003, respectively. PUBLIC SERVICE ELECTRIC & GAS COMPANY
Sales and Revenues to Customers December 2004 (Unaudited) Electric
Sales Three Change Twelve Change Sales (millions kwh) Months vs.
Months vs. Ended 2003 Ended 2003 Residential 2,936 2.9% 13,117 2.5%
Commercial 5,587 1.7% 23,330 4.7% Industrial 1,573 60.0% 6,520
-1.5% Street Lighting 107 -40.0% 364 -60.0% Interdepartmental 12
472.4% 31 151.8% Total 10,215 2.0% 43,362 3.1% Revenue ($ in
millions) Residential $305 -6.7% $1,491 11.4% Commercial 371 -9.0%
1,892 3.2% Industrial 74 -9.5% 359 -13.3% Street Lighting 16 -4.6%
60 7.7% Other 74 49.9% 293 44.3% Total $840 -4.8% $4,095 6.5% Gas
Sold and Transported Three Change Twelve Change Sales (millions
therms) Months vs. Months vs. Ended 2003 Ended 2003 Residential
Sales 454 -1.3% 1,473 -4.3% Commercial - Firm Sales 171 -20.0% 591
-3.3% Commercial - Interr. & Cogen 14 22.0% 48 3.6% Industrial
- Firm Sales 14 -8.7% 52 -9.3% Industrial - Interr. & Cogen 90
-25.0% 377 -26.0% Other (7) -579.3% 2 -48.8% Total 736 -5.6% 2,543
-8.1% Gas Transported 287 -67.9% 1,035 -22.9% Revenue ($ in
millions) Residential Sales $342 -2.7% $1,077 2.7% Commercial -
Firm Sales 163 35.7% 491 4.0% Commercial - Interr. & Cogen 8
10.0% 34 6.8% Industrial - Firm Sales 14 24.8% 43 -3.0% Industrial
- Interr. & Cogen 71 6.3% 277 -15.5% Other Operating Revenues
32 8.6% 118 5.0% Total $630 7.5% $2,040 0.2% Gas Transported $266
5.7% $837 -2.8% Three Change Twelve Change Weather Data Months vs.
Months vs. Ended 2003 Ended 2003 Degree Days - Actual 1,682 2.6%
4,880 -5.4% Degree Days - Normal 1,685 4,867 THI Hours - Actual 42
-79.5% 14,857 0.3% THI Hours - Normal 264 14,878 PUBLIC SERVICE
ENTERPRISE GROUP INCORPORATED STATISTICAL MEASURES Quarters Ended
Years Ended December December December December 31, 2004 31, 2003
31, 2004 31, 2003 Weighted Average Common Shares Outstanding
(000's) Basic 237,755 235,133 236,984 228,222 Diluted 239,410
236,172 238,286 228,824 Stock Price at End of Period $51.77 $43.80
Dividends Paid per Share of Common Stock $0.55 $0.54 $2.20 $2.16
Dividend Payout Ratio* 72.1% 58.1% Dividend Yield 4.2% 4.9%
Price/Earnings Ratio* 17.0 11.8 Rate of Return on Average Common
Equity* 13.3% 18.4% Ratio of Earnings to Fixed Charges 1.62 2.18
2.14 2.29 Book Value per Common Share $24.14 $23.41 Market Price as
a Percent of Book Value 214% 188% Total Shareholder Return - QTR
Ending 23.1% 5.7% Total Shareholder Return - 12 Months Ending 24.4%
44.0% Generation by Fuel Type Quarters Ended Years Ended December
31, December 31, 2004 2003 2004 2003 Nuclear - NJ 26% 35% 34% 37%
Nuclear - PA 23% 21% 21% 20% Total Nuclear 49% 56% 55% 57% Fossil -
Coal - NJ 15% 12% 12% 11% Fossil - Coal - PA 14% 15% 13% 13% Fossil
- Coal - CT 6% 5% 6% 6% Total Coal 35% 32% 31% 30% Fossil - Oil
& Natural Gas - NJ 15% 10% 13% 10% Fossil - Oil & Natural
Gas - CT 1% 1% 1% 2% Total Oil & Natural Gas 16% 11% 14% 12%
Fossil - Pumped Storage - 1% - 1% 100% 100% 100% 100% * Calculation
based on earnings from continuing operations for 12-month period
ending DATASOURCE: Public Service Enterprise Group Incorporated
CONTACT: Paul Rosengren, 973-430-5911, or Leslie Cifelli,
973-430-3809, both for Public Service Enterprise Group Incorporated
Web site: http://www.pseg.com/
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