PSEG Announces 2013 Third Quarter Results

                  PSEG Announces 2013 Third Quarter Results

$0.77 PER SHARE FROM CONTINUING OPERATIONS

Operating Earnings of $0.76 Per Share

Operating Earnings Guidance Increased to $2.40 - $2.55 Per Share

PR Newswire

NEWARK, N.J., Oct. 30, 2013

NEWARK, N.J., Oct. 30, 2013 /PRNewswire/ --(NYSE: PEG) Public Service
Enterprise Group (PSEG) today reported third quarter 2013 Income from
Continuing Operations and Net Income of $390 million or $0.77 per share as
compared to Net Income and Income from Continuing Operations of $347 million
or $0.68 per share for the third quarter of 2012. Operating earnings for the
third quarter of 2013 were $385 million or $0.76 per share compared to the
third quarter of 2012 operating earnings of $382 million or $0.75 per share.

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

"Our company delivered solid results in the third quarter consistent with our
objectives," said Ralph Izzo, chairman, president and chief executive officer
of PSEG. "PSE&G is on track to provide double-digit growth in earnings driven
by increased investment in transmission, and PSEG Power's results benefit from
its strong locational advantages. Based on our performance through the third
quarter, we are raising our full year operating earnings guidance to $2.40 -
$2.55 per share from $2.25 - $2.50 per share."

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
exclude the impact of returns/(losses) associated with Nuclear Decommissioning
Trust (NDT), certain 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 third quarter. See
Attachment 12 for a complete list of items excluded from Income from
Continuing Operations in the determination of Operating Earnings.

PSEG CONSOLIDATED EARNINGS (unaudited)
Third Quarter Comparative Results
2013 and 2012
                                   Income        Diluted Earnings
                                   ($ millions)  Per Share
                                   2013   2012   2013    2012
Operating Earnings                 $385   $382   $0.76   $0.75
 Reconciling Items                5      (35)   0.01    (0.07)
Income from Continuing Operations* $390   $347   $0.77   $0.68
Average Shares                                   508M    507M

*Income from Continuing Operations is equal to Net Income in both years.

Mr. Izzo went on to say, "A year ago, we were responding to the devastation to
our system caused by Superstorm Sandy. It's only due to the tireless efforts
of a dedicated work-force that we are on track to meet our near and long-term
targets for capital investment and can raise our full year guidance for
operating earnings. The ability of our workforce to meet customer needs has
been recognized with an enhancement to our original contract to operate the
Long Island Power Authority's transmission and distribution system. We remain
focused on securing approval for PSE&G's 'Energy Strong' proposal, and are
well positioned to meet the needs of our customers and perform for our
shareholders."

Our revised Operating Earnings guidance by company for the full year is as
follows:

Operating Earnings
($ millions, except EPS)


                      2013E           2012A
PSEG Power            $630 - $685     $644
PSE&G                 $585 - $600     $528
PSEG Energy Holdings/
Parent                $0 - $10        $64
Total                 $1,215- $1,295  $1,236
Earnings Per Share    $2.40 - $2.55   $2.44

Operating Earnings Review and Outlook by Operating Subsidiary

See Attachment 6 for detail regarding the quarter-over-quarter reconciliations
for each of PSEG's businesses.

PSEG Power

PSEG Power reported operating earnings of $216 million ($0.43 per share) for
the third quarter of 2013 compared with operating earnings of $217 million
($0.43 per share) for the third quarter of 2012.

Power's third quarter earnings benefited from higher PJM capacity prices, an
improvement in the market price of energy and a decline in the supply cost of
gas.

An increase in capacity prices improved Power's quarter-over-quarter earnings
by $0.11 per share. Higher overall market prices for natural gas and an
improvement in basis in the PS-zone had a favorable influence on spot market
prices for energy. In addition, Power's results benefited from its firm gas
transportation contracts which provide it with access to low-cost gas from the
Marcellus Basin. The improvement in the wholesale price of energy and decline
in fuel cost combined to add $0.04 per share to earnings quarter-over-quarter.
The improvement in capacity revenue and wholesale energy margins more than
offset the impact on earnings from a reduction in the average price on hedged
volumes. The decline in the average price of energy hedges reduced
quarter-over-quarter earnings by $0.10 per share. A reduction in generation
volumes, as a result of more normal weather and a maintenance related outage,
reduced Power's quarter-over-quarter earnings comparisons by $0.02 per share.

PSEG Power initiated a planned major maintenance program at the Bethlehem
Energy Center in the third quarter. The maintenance work, which concluded in
October, resulted in an increase in Power's operating and maintenance (O&M)
expense (exclusive of storm-related restoration activity) and reduced
quarter-over-quarter earnings comparisons by $0.04 per share.

Power's output declined by 5.4% in the quarter from year-ago levels. More
normal weather conditions and the maintenance outage at Bethlehem combined to
reduce output from the fossil fleet by 10% in the quarter. The nuclear fleet
operated at an average capacity factor of 91% in the quarter versus 92% in the
year-ago quarter resulting in a capacity factor of 93.2% for the nine months
ended September 30, 2013.

Power continues to forecast output for 2013 of 53 – 55 TWh. Output for the
fourth quarter of approximately 13 – 14 TWh is 70% - 75% hedged at an average
price of $50 per MWh. For 2014, forecast output of 53 – 55 TWh is
approximately 65% - 70% hedged at an average price of $48 per MWh. Power has
hedged approximately 35% - 40% of its forecast generation in 2015 of 52 – 54
TWh at an average price of $48 per MWh. Power's forecast of total output in
each of the next two years remains unchanged from prior guidance. The increase
in the percentage of Power's generation hedged for 2014 – 2015 reflects an
upward adjustment to the forecast of BGS related hedges as well as an increase
in the percentage of energy hedged through other PJM-West hedges. The hedge
data for 2014 now assumes BGS volumes of 11 TWh versus the prior guidance of
10 TWh. Power continues to assume BGS related load and hedges in 2013 will
represent approximately 12 TWh of generation for the year.

The forecast range of Power's operating earnings for 2013 has been increased
to $630 - $685 million from $535 - $600 million.

PSE&G

PSE&G reported operating earnings of $168 million ($0.33 per share) for the
third quarter of 2013 compared with operating earnings of $155 million ($0.30
per share) for the third quarter of 2012.

PSE&G's third quarter earnings reflect increased revenue associated with a
greater level of investment.

An increase in PSE&G's transmission revenue, effective on January 1, 2013,
increased quarter-over-quarter earnings by $0.04 per share. Revenue from
investments made under PSE&G's distribution capital infrastructure investment
program contributed $0.01 per share to earnings in the third quarter.

Electric demand in the third quarter was influenced by weather which was
hotter than normal, but cooler than the weather conditions experienced in the
year-ago period. Also, demand for electricity continues to be impacted by
customer conservation in a slowly improving economic environment. Weather
normalized sales – led by a decline in the residential sector – are estimated
to have declined by 2.3% in the third quarter. Sales of gas, although not as
important in the third quarter as demand for electricity, increased 10.4% from
year-ago levels reflective of customer adjustment of use to a lower cost of
gas.

The net impact on earnings from weather and the change in sales was a
reduction in quarter-over-quarter earnings of $0.02 per share. A slight
increase in distribution related O&M and depreciation expense was offset by a
decline in interest expense and other items.

PSE&G announced on October 23 that it would be providing a two-month bill
credit for its residential gas customers that will reduce the typical monthly
bill by approximately 33% in both November and December. The credit is driven
by our access to low-cost shale gas supply.

PSE&G is investing $3.4 billion in transmission related programs over the
period 2013 – 2015. This program, which includes five major transmission
lines, remains on time and on budget. All five transmission projects are
expected to be operational during 2014 – 2015. PSE&G filed its annual update
of revenue requirements associated with its transmission investment program
with the Federal Energy Regulatory Commission (FERC) in mid-October. If
accepted, transmission revenue in 2014 would increase by $176 million at the
start of the New Year.

The forecast of PSE&G's operating earnings for 2013 has been adjusted to $585
million - $600 million from $580 - $635 million.

PSEG Energy Holdings/Enterprise

PSEG Energy Holdings/Enterprise reported operating earnings of $1 million for
the third quarter of 2013 versus operating earnings of $10 million ($0.02 per
share) during the third quarter of 2012. Results for the quarter reflect the
continued monetization of assets within Holdings' portfolio and the absence of
gains on an asset sale in the year-ago quarter.

NRG Energy recently announced that it has entered into an agreement to acquire
Edison Mission Energy (EME) as part of an EME Chapter 11 plan of
re-organization sponsored by NRG. In connection with the transaction, NRG has
agreed to certain financial conditions with the lessors of the Powerton and
Joliet facilities (including PSEG Energy Holdings) which would cure all
monetary defaults at closing and protect the lessors' equity value in the
leveraged leases.

The forecast of PSEG Energy Holdings/Enterprise full year operating earnings
for 2013 has been adjusted to $0 - $10 million from $25 - $35 million. The
updated guidance reflects the impact of revised estimates for the legacy
Holdings' portfolio and related taxes (separate from the merchant energy
leases) which are expected to more than offset the impact on operating
earnings from the commercial operation of Holdings' sixth solar facility, a
19MW solar facility ($50 million investment) located in Arizona.

PSEG – Long Island

The Board of Directors for the Long Island Power Authority (LIPA) has approved
amendments to PSEG – Long Island's original operating services agreement for
LIPA's transmission and distribution system. The amendments recognize an
increase in PSEG – Long Island management responsibility to operate and
maintain LIPA's system, expand the length of the contract by 2 years to 12
years effective January 1, 2014, increase PSEG – Long Island's compensation
effective in 2016 and, in 2015, provide PSEG Power's Energy Resources and
Trade group with the contract to procure LIPA's fuel requirements. The
agreements' effectiveness is contingent upon LIPA's receipt of a Private
Letter Ruling from the IRS on the continued tax-exempt status of certain LIPA
debt securities and LIPA's approval of the proposed 2014 and 2015 operating
and capital pass-through budgets.

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 - Consolidating Statements of Operations
Attachment 4 - Capitalization Schedule
Attachment 5 - Condensed Consolidated Statements Of Cash Flows
Attachment 6 - Quarter-over-Quarter EPS Reconciliation
Attachment 7 - Year-over-Year EPS Reconciliation
Attachment 8 - Generation Measures
Attachment 9 - Retail Sales and Revenues
Attachment 10 - Retail Sales and Revenues
Attachment 11 - Statistical Measures
Attachment 12 - Reconciling Items Excluded from Income from Continuing
Operations/Net Income to Compute Operating Earnings

FORWARD-LOOKING STATEMENTS

Certain of the matters discussed in this communication about us 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 and available on our website:
http://www.pseg.com.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 obtain sufficient coverage or recover
    proceeds of insurance on such matters,
  oincreases in competition in energy supply markets as well as competition
    from certain rate-base 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, such as distributed generation and microgrids, and
    resultant changes in customer usage patterns, including energy efficiency
    and demand response.

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 Section 27A of the Securities Act of
1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as
amended.

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SOURCE Public Service Enterprise Group (PSEG)

Website: http://www.pseg.com
Contact: Michael Jennings, 973-430-6406, Michael.Jennings@pseg.com