NEWARK, N.J., May 5 /PRNewswire-FirstCall/ -- Public Service
Enterprise Group (PSEG) (NYSE: PEG) reported today First Quarter
2010 Net Income and Income from Continuing Operations of
$491 million or $0.97 per share as compared to $444 million or $0.88 per share for the First Quarter of 2009.
Operating Earnings for the first quarter of 2010 were
$425 million or $0.84 per share compared to the First Quarter of
2009 Operating Earnings of $482
million or $0.95 per
share.
PSEG believes that the non-GAAP financial measure of "Operating
Earnings" provides a consistent and comparable measure of
performance of its businesses to help shareholders understand
performance trends. Operating Earnings exclude the impact of
returns/(losses) associated with NDT and MTM accounting. The
table below provides a reconciliation of PSEG's Net Income to
Operating Earnings (a non-GAAP measure) for the first quarter.
See Attachment 10 for a complete list of items excluded from
Income from Continuing Operations in the determination of Operating
Earnings.
|
|
PSEG CONSOLIDATED
EARNINGS (unaudited)
|
|
First Quarter
Comparative Results
|
|
2010 and
2009
|
|
|
|
|
Income
|
|
Diluted
Earnings
|
|
|
($millions)
|
|
Per
Share
|
|
|
2010
|
2009
|
|
2010
|
2009
|
|
Net Income/Income from Continuing
Ops
|
$491
|
$444
|
|
$0.97
|
$0.88
|
|
|
|
|
|
|
|
|
Less: Excluded Items
|
66
|
(38)
|
|
0.13
|
(0.07)
|
|
Operating Earnings
(Non-GAAP)
|
$425
|
$482
|
|
$0.84
|
$0.95
|
|
|
|
Avg.
Shares
|
507M
|
507M
|
|
|
|
|
|
|
|
|
|
"The economy has shown signs of stabilizing, but pricing in our
markets remains difficult," said Ralph
Izzo, chairman, president and chief executive officer of
PSEG. He went on to say, "Our results were also hurt by a
devastating rain and wind storm which struck New Jersey in March. However, the
exemplary performance of our employees—along with aid from other
utilities—resulted in customers returning to service within a week.
Our ongoing focus on operational excellence, and our
commitment to maintaining financial strength should support the
long-term needs of our customers and shareholders in an evolving
energy market. This focus continues to support our operating
earnings guidance for 2010 of $3.00-$3.25 per share."
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.
PSEG Power
PSEG Power reported operating earnings of $298 million ($0.59
per share) for the first quarter of 2010 compared with operating
earnings of $352 million
($0.69 per share) for the first
quarter of 2009. PSEG Power's operating earnings for 2009 have been
adjusted to reflect the inclusion of the results for the
Texas gas-fired generating assets
transferred from PSEG Energy Holdings during the fourth quarter of
last year.
PSEG Power's results in the first quarter of 2010 were affected
by weak power prices which more than offset a 7% increase in
volume. The reduction in prices reduced Power's
quarter-over-quarter earnings by $0.05 per share. This impact from lower
pricing includes the effect of customer migration from BGS, which
saw a slight increase over levels experienced in the fourth quarter
of 2009. Customer migration away from BGS amounted to
$0.01 per share. A decline in
gas prices and volumes associated with BGSS and other trading
related activity reduced Power's earnings during the quarter by
$0.04 per share. Earnings
comparisons were also hurt by an increase in O&M associated
with planned major maintenance programs in Texas and New
York which reduced earnings by $0.02 per share. A quarter-over-quarter
decline in depreciation and financing costs improved Power's
earnings comparisons by $0.03 per
share. Results were also affected by a one-time increase in
taxes associated with new health care legislation enacted in
March 2010 which reduced earnings by
$0.02 per share.
The nuclear fleet continued its strong performance. The
nuclear generation operated by PSEG Power performed at an average
capacity factor of 97.2% during the quarter; including PSEG Power's
50% interest in the Peach Bottom units, the fleet operated at an
average capacity factor during the quarter of 97.3%. Even
though weather for the quarter was warmer than normal, a
combination of cold weather and higher pricing in the months of
January and February supported an increase in generation from the
coal-fired fleet which operated at an average capacity factor
during the quarter of 57%. The combined cycle fleet benefited
from market opportunities, operating at an average capacity factor
of 45% during the quarter versus a 35% capacity factor during the
year ago quarter.
PSE&G
PSE&G reported operating earnings of $117 million ($0.23
per share) for the first quarter of 2010 compared with operating
earnings of $123 million
($0.24 per share) for the first
quarter of 2009.
The results for the quarter were affected by several factors.
Warmer than normal weather during the quarter in contrast to
colder than normal weather experienced in 2009's first quarter
reduced the demand for gas heating, and lowered
quarter-over-quarter earnings by $0.02 per share. Heating Degree Days in the
quarter were 3.8% below normal and 10.5% below 2009's first
quarter. This decline in demand was partially offset by an
increase in transmission revenues which added $0.01 per share. An improvement in demand
related margin on electric sales to the commercial sector added
$0.01 per share. Weather-normalized
electric sales were flat versus year ago levels as a slight
increase in sales to residential customers was offset by a small
decline in sales to commercial and industrial customers. The
company experienced several storms during the quarter including
extreme weather in March, resulting in an increase in operating and
maintenance expense of $0.02 per
share.
PSE&G continues to await a decision on its request to
increase electric ($139.8 million)
and gas ($64.4 million) rates for a
total increase in revenue of $204
million. The company's request has been adjusted from its
original request for an increase in revenue of $239 million. A decision is anticipated by
mid-year.
PSE&G received the New Jersey BPU's written order in late
April approving the Susquehanna-Roseland transmission line. Subject to
obtaining certain other necessary approvals, the company plans to
begin construction of the line this summer between Hopatcong Borough and Roseland Township.
PSEG Energy Holdings
PSEG Energy Holdings reported operating earnings of $7 million ($0.01
per share) for the first quarter of 2010 versus operating earnings
of $11 million ($0.02 per share) during the first quarter of
2009. The results for 2009 have been adjusted to reflect the
transfer of the Texas gas-fired
generating assets to PSEG Power during the fourth quarter of
2009.
The decline in operating earnings for the quarter reflects lower
project earnings and lower gains on lease sales which together
reduced quarter over quarter earnings by $0.01 per share.
Financings
PSE&G and PSEG Power completed a number of financings during
the quarter which had the net effect of reducing the cost of
financing for PSEG Power and extending out the maturity schedule of
both companies' long-term debt.
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 Continuing
Operations to Compute Operating Earnings
FORWARD-LOOKING STATEMENT
Readers are cautioned that statements contained in this
presentation about our and our subsidiaries' future performance,
including future revenues, earnings, strategies, prospects and all
other statements that are not purely historical, are
forward-looking statements for purposes of the safe harbor
provisions under The Private Securities Litigation Reform Act of
1995. Although we believe that our expectations are based on
reasonable assumptions, we can give no assurance they will be
achieved. The results or events predicted in these statements
may differ materially from actual results or events. Factors
which could cause results or events to differ from current
expectations include, but are not limited to:
- Adverse changes in energy industry, law, policies and
regulation, including market structures and rules, and reliability
standards.
- Any inability of our transmission and distribution businesses
to obtain adequate and timely rate relief and regulatory approvals
from federal and state regulators.
- Changes in federal and state environmental regulations that
could increase our costs or limit operations of our generating
units.
- Changes in nuclear regulation and/or developments in the
nuclear power industry generally, that could limit operations of
our nuclear generating units.
- Actions 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 at the same site.
- Any inability to balance our energy obligations, available
supply and trading risks.
- Any deterioration in our credit quality.
- Availability of capital and credit at commercially reasonable
terms and our ability to meet cash needs.
- Any inability to realize anticipated tax benefits or retain tax
credits.
- Changes in the cost of or interruption in the supply of fuel
and other commodities necessary to the operation of our generating
units.
- Delays or unforeseen cost escalations in our construction and
development activities.
- Adverse performance of our decommissioning and defined benefit
plan trust fund investments, and changes in discount rates and
funding requirements.
- Changes in technology and increased customer conservation.
For further information, please refer to our Annual Report on
Form 10-K, including Item 1A. Risk Factors, and subsequent reports
on Form 10-Q and Form 8-K filed with the Securities and Exchange
Commission. These documents address in further detail our
business, industry issues and other factors that could cause actual
results to differ materially from those indicated in this
presentation. In addition, any forward-looking
statements included herein represent our estimates only as of today
and should not be relied upon as representing our estimates as of
any subsequent date. While we may elect to update
forward-looking statements from time to time, we specifically
disclaim any obligation to do so, even if our internal estimates
change, unless otherwise required by applicable securities
laws.
Public Service Enterprise Group (NYSE: PEG) is a publicly
traded diversified energy company with annual revenues of more than
$12 billion, and three principal
subsidiaries: PSEG Power, Public Service Electric and Gas Company
(PSE&G) and PSEG Energy Holdings.
SOURCE Public Service Enterprise Group (PSEG)