PSEG Announces 2013 First Quarter Results

                  PSEG Announces 2013 First Quarter Results

Earnings from Continuing Operations of $0.63 Per Share; Operating Earnings of
$0.85 Per Share

Results Reflect Increased Investment at PSE&G and Strong Performance from PSEG
Power

PSE&G Reaches Agreement on Solar Investment

Company Maintains 2013 Guidance of $2.25 - $2.50 Per Share

PR Newswire

NEWARK, N.J., April 30, 2013

NEWARK, N.J., April 30, 2013 /PRNewswire/ --Public Service Enterprise Group
(PSEG) reported today Income from Continuing Operations and Net Income for the
first quarter of 2013 of $320 million or $0.63 per share as compared to Income
from Continuing Operations and Net Income of $493 million or $0.97 per share
in the first quarter of 2012. Operating Earnings for the first quarter of
2013 were $433 million or $0.85 per share compared to Operating Earnings for
the first quarter of 2012 of $432 million or $0.85 per share.

(Logo: http://photos.prnewswire.com/prnh/20120830/MM62627LOGO )

"PSEG delivered for shareholders in the first quarter of 2013, and remains on
track to meet its objectives for full year operating earnings of $2.25 - $2.50
per share" said Ralph Izzo, chairman, president and chief executive officer.
He went on to say, "the results for the quarter demonstrate the locational
value of Power's assets which, along with the strong performance of PSEG
Power's nuclear fleet and Power's open position on its intermediate and
peaking generation, allowed us to take advantage of a favorable price
environment in the energy marketplace while managing downside risk through the
hedges on our base load fleet. Our results also reflect a contribution from
PSE&G's increased capital investment in transmission and the continued benefit
from our focus on operational excellence. Our success, as always, is driven
by the hard work and dedication of our employees."

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. Operating Earnings
excludes gains or losses associated with Nuclear Decommissioning Trust (NDT),
Mark-to-Market (MTM) accounting, and other material one-time items. The table
below provides a reconciliation of PSEG's Net Income to Operating Earnings (a
non-GAAP measure) for the first quarter. See Attachment 10 for a complete
list of items excluded from Income from Continuing Operations in the
determination of Operating Earnings.

PSEG CONSOLIDATED EARNINGS (unaudited)
First Quarter Comparative Results
2013 and 2012
                                         Income               Diluted Earnings
                                         ($millions)          Per Share
                                         2013   2012          2013     2012
Operating Earnings                       $433   $432          $0.85    $0.85
Reconciling Items                        (113)  61            (0.22)   0.12
Income from Continuing Operations/Net    $320   $493          $0.63    $0.97
Income
                                                 Avg. Shares 507M     507M

"We are very pleased with our results," said Ralph Izzo. "We benefited from
excellent operations this quarter, but, as focused as we are on meeting our
short-term goals, we are just as committed to delivering on the long-term
promise associated with our proposed 10-year $3.9 billion Energy Strong
investment program. The program, along with plans to invest an additional
$1.5 billion to harden our transmission system over this period, is a natural
extension of our strategy to maintain PSE&G as one of the nation's most
reliable utilities, and would occur during a period of time when major charges
on the electric bill are scheduled to expire. The combination of growth at
PSE&G with PSEG Power's free cash flow and our strong balance sheet provide
the diversification and financial flexibility to help us weather various
market conditions and meet the long-term goals of our customers and
shareholders."

The following table outlines continued expectations for operating earnings in
2013 by subsidiary:

2013 Operating Earnings Guidance

($ millions, except EPS)
                            2013E
PSEG Power                  $535-$600
PSE&G                       580-635
PSEG Energy Holdings/Parent 25-35
PSEG Operating Earnings     $1,140-$1,270
Earnings Per Share          $2.25 - $2.50

Operating Earnings Review by Subsidiary

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

PSEG Power

PSEG Power reported operating earnings of $250 million ($0.49 per share) for
the first quarter of 2013 compared with operating earnings of $196 million
($0.39 per share) for the first quarter of 2012. Power's operating earnings
exclude the impact of Super Storm Sandy related restoration costs given the
unusual nature of the storm's impact on Power.

Power's first quarter operating earnings benefited from strong market prices
for energy, higher capacity prices, and an increase in generation.

Normal winter weather conditions this year compared to abnormally mild weather
conditions in the year-ago quarter, higher prices for natural gas and an
improvement in basis all had a favorable influence on spot market prices for
energy in the first quarter. Power's results also benefited from higher market
prices on its unhedged intermediate and peaking generation. The improvement in
wholesale pricing quarter-over-quarter offset the impact of lower contract
prices on energy hedged through the Basic Generation Services Contract (BGS)
and other wholesale contracts resulting in a net increase in earnings
quarter-over-quarter of $0.02 per share. An increase in capacity prices on
June 1, 2012 to $153 per MW-day from $110 per MW-day improved Power's
quarter-over-quarter earnings by $0.05 per share.

PSEG Power's output increased 7.7% during the quarter as a result of higher
pricing and more favorable weather which had a positive influence on the
dispatch of Power's fossil fleet. The increase in generation added $0.02 per
share to earnings quarter-over-quarter. Normal weather conditions compared to
abnormally warm conditions in the year-ago quarter also had a favorable impact
on off-system gas sales. The improvement in send-out also supported recovery
of Power's fixed expenses associated with its gas supply and storage
operations; these items together improved quarter-over-quarter earnings by
$0.04 per share. An increase in operating and maintenance expense (exclusive
of storm-related activity) and other items reduced earnings by $0.02 per
share. An increase in depreciation related to the in-service of new peaking
capacity and low pressure turbines at Peach Bottom reduced earnings by $0.01
per share.

PSEG Power expensed approximately $28 million pre-tax on storm recovery
activity in the first quarter of 2013, bringing Power's total pre-tax storm
related expenditures to $113 million. Of this amount, Power has received $19
million in initial insurance proceeds to return its facilities to service.

The nuclear fleet operated slightly in excess of its rated capacity in the
first quarter, or at 101%, and provided 57% of Power's output. The fleet's
performance was enhanced by record quarterly generation from the Salem
Station. An upgrade of the equipment and the design at Salem's circulating
water intake structure strongly aided plant performance. The economics of
operating Power's coal units improved in the first quarter. Performance was
supported by higher demand under more normal winter weather conditions and
higher gas prices. Generation from Power's coal fleet nearly doubled from the
year-ago quarter and provided approximately 16% of Power's output. Power's
gas-fired combined cycle fleet operated at an average capacity factor in the
quarter of 52% compared to 56% in the year-ago quarter. Output at the Linden
facility was reduced due to repair activity following Super Storm Sandy. The
facility was returned to full-service on January 11, 2013.

Power continues to forecast output for 2013 of 53 – 55 TWh. Output for the
remainder of the year is approximately 70% - 75% hedged at an average price of
$50 per MWh. For 2014, forecast output of 53 – 55 TWh is approximately 50% -
55% hedged at an average price of $50 per MWh. Power has hedged 25% - 30% of
its forecast generation in 2015 of 52 – 54 TWh at an average price of $50 per
MWh. The results include the impact of the February 2013 auction of Basic
Generation Service (BGS) load in New Jersey. A price of $92 per MWh for the
PSE&G zone in the latest auction will replace BGS auction prices of $96 per
MWh for the three-year period beginning June 1, 2013. Average hedge prices
also continue to reflect assumed BGS volumes of 12 TWh in 2013 and 10 TWh in
2014.

The forecast of Power's operating earnings for 2013 remains unchanged at $535
million - $600 million.

PSE&G

PSE&G reported operating earnings of $179 million ($0.35 per share) for the
first quarter of 2013 compared with operating earnings of $197 million ($0.39
per share) for the first quarter of 2012.

PSE&G's first quarter results reflect the absence of the $0.06 per share tax
settlement in the year-ago quarter which more than offset the contribution to
earnings from the increased level of transmission investment.

The Federal Energy Regulatory Commission (FERC) authorized PSE&G's request for
an annual increase in transmission revenue under the company's formula rate
filing. The rate increase, which was effective on January 1, 2013, supported a
quarter-over-quarter increase in the net earnings contribution from
transmission of $0.03 per share. Electric and gas demand in the quarter was
influenced by weather which was only slightly colder than normal, but
significantly colder than a year ago. Electric and gas sales increased in the
quarter by 0.9% and 23% respectively. We estimate weather normalized electric
sales declined by 2.0% in the first quarter from year-ago levels as weather
normalized gas deliveries increased by 0.6% quarter-over-quarter. The
favorable weather comparison added $0.02 per share to earnings.

An increase in Distribution Operation and Maintenance (O&M) expense
quarter-over-quarter was influenced by the continued impact of storm related
repair, and the more normal weather experienced in the current period which
resulted in O&M related work versus the warm weather in the year-ago period
which supported an acceleration of capital related work. The increase in
Distribution O&M reduced quarter-over-quarter earnings by $0.02 per share. The
full year growth rate for O&M is expected to be lower than the rate of growth
seen during the first quarter. An increase in depreciation expense and other
miscellaneous items reduced earnings quarter-over-quarter by $0.01 per share.

The forecast of PSE&G's operating earnings for 2013 remains unchanged at $580
- $635 million.

Solar Agreement

PSE&G has reached an agreement with the Staff of the New Jersey Board of
Public Utilities (BPU) and certain other parties on its proposal to increase
spending on renewable energy under its Solar Loan and Solar 4 All investment
programs. Under the agreement, which will now be subject to comment by all
parties, PSE&G will invest up to $199 million on new solar (97.5 MW) as part
of the Solar Loan III program. The agreement also provides for PSE&G to invest
approximately $247 million to develop new solar capacity (42 MW) on landfills,
brownfields, and 3 MW in smaller pilot programs as part of the Solar 4 All
extension. The investment would represent 50% of PSE&G's original request to
invest up to $883 million on the two programs. The capital investment would
occur over a
3-year period of time as compared to the original 5-year request. A decision
by the New Jersey BPU is anticipated no later than May 31.

PSEG Energy Holdings/Enterprise

PSEG Energy Holdings/Enterprise reported operating earnings of $4 million
($0.01 per share) for the first quarter of 2013 compared with operating
earnings of $39 million ($0.07 per share) during the first quarter of 2012.
First quarter operating earnings reflect the absence of $0.07 per share of tax
benefits received in the first quarter of 2012 related to the settlement of
IRS tax audits.

The forecast of PSEG Energy Holdings/Parent full year operating earnings for
2013 is unchanged at $25 million - $35 million. The results will reflect the
full year operation of the Milford and Queen Creek solar facilities (40 MW)
which entered service in the fourth quarter of 2012 as well as the commercial
operation of a 19MW solar facility located in Arizona expected to enter
in-service in the fourth quarter at a cost of approximately $50 million.

Credit Ratings

Standard & Poor's Ratings Services (S&P) raised its corporate credit ratings
on PSEG, PSE&G and PSEG Power LLC to BBB+ from BBB on April 23, 2013. S&P also
raised the rating on PSE&G's senior secured debt to A from A-. The rating
outlook on all three issuers is stable.

The following attachments can be found on www.pseg.com:

Attachment 1 - Operating Earnings and Per Share Results by Subsidiary
Attachment 2 - Consolidating Statements of Operations
Attachment 3 - Capitalization Schedule
Attachment 4 – Condensed Consolidated Statements of Cash Flows
Attachment 5 - Quarter-over-Quarter EPS Reconciliation
Attachment 6 – Generation Measures
Attachment 7 – Retail Sales and Revenues
Attachment 8 – Retail Sales and Revenues
Attachment 9 – Statistical Measures
Attachment 10 - Reconciling Items Excluded from Income from Continuing
Operations/Net Income to Compute Operating Earnings

FORWARD-LOOKING STATEMENT
Certain of the matters discussed in this report 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 Item1. Financial Statements—Note 8. Commitments and Contingent
Liabilities, Item2. Management's Discussion and Analysis of Financial
Condition and Results of Operations, and other factors discussed in filings we
make with the United States Securities and Exchange Commission (SEC). These
factors include, but are not limited to:

  oadverse changes in the demand for or the price of the capacity and energy
    that we sell into wholesale electricity markets,

  oadverse changes in energy industry law, policies and regulation, including
    market structures and a potential shift away from competitive markets
    toward subsidized market mechanisms, transmission planning and cost
    allocation rules, including rules regarding how transmission is planned
    and who is permitted to build transmission in the future, and reliability
    standards,

  oany inability of our transmission and distribution businesses to obtain
    adequate and timely rate relief and regulatory approvals from federal and
    state regulators,

  ochanges in federal and state environmental regulations that could increase
    our costs or limit our operations,

  ochanges in nuclear regulation and/or general developments in the nuclear
    power industry, including various impacts from any accidents or incidents
    experienced at our facilities or by others in the industry, that could
    limit operations of our nuclear generating units,

  oactions or activities at one of our nuclear units located on a multi-unit
    site that might adversely affect our ability to continue to operate that
    unit or other units located at the same site,

  oany inability to balance our energy obligations, available supply and
    risks,

  oany deterioration in our credit quality or the credit quality of our
    counterparties, including in our leveraged leases,

  oavailability of capital and credit at commercially reasonable terms and
    conditions and our ability to meet cash needs,

  ochanges in the cost of, or interruption in the supply of, fuel and other
    commodities necessary to the operation of our generating units,

  odelays in receipt of necessary permits and approvals for our construction
    and development activities,

  odelays or unforeseen cost escalations in our construction and development
    activities,

  oany inability to achieve, or continue to sustain, our expected levels of
    operating performance,

  oany equipment failures, accidents, severe weather events or other
    incidents that impact our ability to provide safe and reliable service to
    our customers, and any inability to sufficiently obtain coverage or
    recover proceeds of insurance on such matters,

  oincrease in competition in energy supply markets as well as competition
    for certain rate-based transmission projects,

  oany inability to realize anticipated tax benefits or retain tax credits,

  ochallenges associated with recruitment and/or retention of a qualified
    workforce,

  oadverse performance of our decommissioning and defined benefit plan trust
    fund investments and changes in funding requirements, and

  ochanges in technology and customer usage patterns.

All of the forward-looking statements made in this report 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 or results of operations. Readers are cautioned
not to place undue reliance on these forward-looking statements in making any
investment decision. Forward-looking statements made in this report apply only
as of the date of this report. While we may elect to update forward-looking
statements from time to time, we specifically disclaim any obligation to do
so, even if internal estimates change, unless otherwise required by applicable
securities laws. The forward-looking statements contained in this report are
intended to qualify for the safe harbor provisions of Section27A of the
Securities Act of 1933, as amended, and Section21E of the Securities Exchange
Act of 1934, as amended.

Public Service Enterprise Group (NYSE:PEG) is a publicly traded diversified
energy company with annual revenues of $9.8 billion, and three principal
subsidiaries: PSEG Power, Public Service Electric and Gas Company (PSE&G) and
PSEG Energy Holdings. For more information, visit www.pseg.com.

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SOURCE Public Service Enterprise Group (PSEG)

Website: http://www.pseg.com
Contact: Jenn Kramer, 973-430-6027, Jennifer.kramer@pseg.com
 
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