Ladies and gentlemen, thank you for standing by. My name is Brandy, and I am your event operator today. I would like to welcome everyone to today's conference, Public Service Enterprise Group Fourth Quarter Earnings Conference Call and Webcast. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session for members of the financial community. As a reminder, this conference is being recorded today, February 20, 2015, and will be available for telephone replay beginning at 1 PM Eastern Time today until 11:30 PM Eastern Time on February 27, 2015. It will also be available as an audio webcast on PSEG's corporate website at www.pseg.com. I would now like to turn the conference over to Kathleen Lally. Please go ahead.

Thank you, Brandy. Good morning, everyone. Thank you for participating in our call today. As you are aware, we released our fourth quarter and full year 2014 earnings results earlier this morning. The release and attachments, as mentioned, are posted on our website, www.pseg.com, under the Investors section. We have also posted a series of slides that detail operating results by company for the quarter. Our 10-K for the period ended December 31, 2014 is expected to be filed shortly. I don't typically read the full disclaimer statement or the comments we have on the difference between operating earnings and GAAP results, but I do ask that you read those comments contained in our slides and on our website. The disclaimer regards forward-looking statements, detailing a number of risks and uncertainties that could cause the actual results to differ materially from forward-looking statements made therein. And although we may elect to update forward-looking statements from time-to-time, we specifically disclaim any obligation to do so, even if our estimates change unless, of course, we are required to do so by applicable securities laws. We also provide commentary with regard to the difference between operating earnings and net income reported in accordance with Generally Accepted Accounting Principles in the United States. PSEG believes that the non-GAAP financial measure of operating earnings provides a consistent and comparable measure of performance to help shareholders understand trends. But I would now like to turn the call over to Ralph Izzo, Chairman, President, and Chief Executive Officer of Public Service Enterprise Group. And joining Ralph on the call is Caroline Dorsa, Executive Vice President and Chief Financial Officer. At the conclusion of their remarks, there will be time for your questions. Ralph? Ralph Izzo - Chairman, President & Chief Executive Officer: Thanks, Kathleen. And thanks, everyone,…

Ladies and gentlemen, we will now begin the question and answer session for members of the financial community. Your first question comes from the line of Julien Dumoulin-Smith with UBS.

Hi. Good morning. Ralph Izzo - Chairman, President & Chief Executive Officer: Good morning, Julien. Caroline D. Dorsa - Chief Financial Officer & Executive Vice President: Good morning, Julien.

Hey. So, first quick question. Following the Bridgeport sort of back of clearing that asset, what's your thought about building out Power at present? I mean, are we going to look towards clearing potentially new assets in different markets or what's your overall thought about capital deployment at this point in time in Power or back at Public Service Utility? Ralph Izzo - Chairman, President & Chief Executive Officer: So, Julien, our thinking on this hasn't changed. Our Power markets that we're interested in are PJM, New York and New England. We look for asset acquisitions, we look for opportunities to repower sites, we look for opportunities to extend or increase the output of our plants. As you all know, we've been much more successful on the later and not as successful on the former. So Peach Bottom uprate, advanced gas path improvements, a couple of peakers here and there have not been able to see the same price justification as others on asset acquisitions and similar thing happened in New England. In general, we like the New England markets from the point of view of newbuild because of the seven year. That's a bigger hurdle to overcome in PJM because of the one-year price. On the regulated utility side, we'll give you more detail on March 2, but there is still very much a robust capital program that we'll be showing you for the five years, and not just in terms of transmission which has been our number one. But as we've talked about in the past, opportunities to accelerate the replacement of our cast iron mains system in the gas business, as well as some of the components of the Energy Master Plan that relate to energy efficiency and renewables. You may recall, it's only been 10 months or so. So, I'm not suggesting we're done by any means but Energy Strong was a much bigger program than what was ultimately approved, so there will be more of that, but it's a little bit longer term than the next coming months. So there is no shortage of opportunities to deploy the capital. We are disappointed at Bridgeport Harbor, I'm not going to deny that but we've reefed up things we can do.

Great. And then perhaps moving on with what about the bidding inquiry? Any update there you can elaborate by chance where we stand? Ralph Izzo - Chairman, President & Chief Executive Officer: We're not giving any more detail on that than we have already, Julien. We don't have any new information to update our financials and we are actively involved which FERC. We meet with them on a regular basis in terms of their questions and giving them feedback. But right now we'd rather make sure that FERC has all the information before talking much more about that on our earnings call.

Great. And then, if you will, I noticed PJM East just generally or specifically Public Service Zone, saw sort of a negative basis versus PJM West on a spot basis in the back half of the year. Could you talk about what dynamics you saw day-to-day in the market that would drive that and what your expectations are for forward basis East versus West hedging that specifically? Ralph Izzo - Chairman, President & Chief Executive Officer: Sure. So, Julien, as we said, the Power markets at least for the foreseeable future have been turned 180 degrees. The winter is where most of the volatility and earnings potential for Power is coming from and that hasn't changed since we started talking about that now almost two seasons ago. So when you look at basis for the year, that's a little bit of a misleading view of the world. It's a combination of moderate basis in the summer, very strong basis in the winter and weak basis, in fact, negative basis in the shoulder periods. But the flexibility of our fleet and the way in which we hedge it takes all that into account. Over the longer term, I think what you are going to see is the market dynamic that's going to driven by significant infrastructure build of gas pipes from the Marcellus region to the Southeast and significant replacement of aging power plants that aren't able to meet environmental standards in the Southeast with highly efficient natural gas combined cycle. So we don't run the business saying that we are smarter than the market but to the extent that the market is viewed as an extend to that three-year to five-year timeframe, we still have lots of reasons to feel pretty confident in the location and quality of our asset base.

Great. Thank you all very much.

Next question.

Your next question comes from the line of Dan Eggers with Credit Suisse. Dan L. Eggers - Credit Suisse Securities (USA) LLC (Broker): Hey, good morning, guys. Ralph Izzo - Chairman, President & Chief Executive Officer: Good morning, Dan. Dan L. Eggers - Credit Suisse Securities (USA) LLC (Broker): Just kind of on the Power side of the outlook for Power, can you just walk through or remind us all the hedging strategies you guys are using? Obviously, you got the nice price uplift in the hedge percentages going from 100% hedged to a 100% hedged. So can you just remind us how you got that upside? Caroline D. Dorsa - Chief Financial Officer & Executive Vice President: Sure. Dan, it's Caroline. Sure. Thanks. Yeah, I cited the baseload and the total and, keep in mind, that intermediate and peaking, right? So if you look at what we told you on the third quarter call, we were still a 100% hedged on the baseload. But the differences really occurred as we've added hedges in that intermediate and peaking which was 5% to 10% for 2015 on the last call and is now 40% to 45%. Now, of course, piece of that would be BGS, but if you do the math on that, you'd see that's a little less than half of the total on an estimated basis. And really what's going on, Dan, and if you look at the curves, just look at the forward price curve, you see this there were opportunities where the prices moved up during the last quarter before they came down right at the very end, and spark spreads have been pretty robust. And so, we took advantage of those opportunities to layer on incremental hedges. And by having that incremental flexibility and putting on…

Your next question comes from the line of Ashar Khan (42:04) with Visium.

Good morning and congratulations. Ralph Izzo - Chairman, President & Chief Executive Officer: Thank you, Ashar Khan (42:10). Good morning.

Well, I've been kind of attacking this I guess, Ralph, it's like – year-after-year it's like the best integrated company, and I hope we start getting discernible premium this year as we go forward. Ralph Izzo - Chairman, President & Chief Executive Officer: Thanks.

But I wanted to go over a point that Caroline graced is that because of the all pension and all that and the hefty CapEx that you've mentioned, if I heard correctly Caroline, you expect the utility to then go back to somewhat closer to a 9% or 10% growth rate going forward if I do my math correctly based on the CapEx and everything for the next couple of years. Is that a fair thing which you referred to a little bit in your remarks because the growth got a little bit dampened this year from 2014 to 2015 from the pension and other things. But it should re-grow at a faster rate coming out of the blocks 2015 going forward, based on the CapEx and things which you have indicated. Am I on the right track? Caroline D. Dorsa - Chief Financial Officer & Executive Vice President: Yeah. So, Ashar Khan (43:20), you are on the right track. I won't validate a particular number that you cited there. But, yes, think about one-time effects, when you have a year-on-year effect of something like bonus depreciation which you remember, was passed at the very, very end of 2014, that has its one-year effect and then it becomes part of the base. Pension same thing, right, lower interest rates and then mortality table, which as you probably know is once in about 10-year effect, those things come in. And so, we would expect utility growth to be higher as we go on a 2015 to 2016 basis and on a 2014 to 2015 basis for exactly the reasons you cite overlaid on the backdrop of what I just mentioned, which is a continued robust investment program averaging a little bit more on an annual basis than we actually spent last year. So the fundamentals are there to provide the driver for that opportunity and we've got these sort of one-year effects from the two items. That's the right way to think about it.

And then, if I could just then if I'm thinking through it on an investment proposition, so it's now utility earnings with the LIPA contract and all that makeup like 55% of the earnings. And say, this is my number, if we're growing at around 9% or 10%, on the utility that would imply a consolidated growth rate of about 5% or so. And with the dividend now growing at 5%, I mean I think so we have a value proposition, which is equal to any utility or even better than the rest of the group. Caroline D. Dorsa - Chief Financial Officer & Executive Vice President: So we certainly think we have a good value proposition, no doubt about that – and thank you for mentioning the dividend as well. Obviously, we don't give guidance beyond the current year, as you know, because of Power, although I think we're pretty pleased with what we've been able to deliver and the guidance we're giving for Power for this year. And frankly, going forward, expect us to do the same things we've been doing with Power for the past few years and I think relatively successfully layering in hedging, taking advantage of opportunities when we see them, and continuing to just take advantage of a well-positioned fleet. So we do think we have a good value proposition. I just mentioned and I think you were just doing the math separately. As you know, PSEG Long Island and our operating arrangement on Long Island is not part of PSE&G's results. It's part of the Enterprise, but you may have been just adding that back in your calculation.

Okay. And if I can just end up, Ralph, we're happy on the dividend, but do you have a payout goal in mind for the consolidated entity earnings or on the utility earnings? I just wanted to get a sense. If not the board has a payout or no? Ralph Izzo - Chairman, President & Chief Executive Officer: Sure. No, we don't, Ashar (46:21). You may recall, a few years ago, maybe about five or so, we did have a number, and we found it too limiting. The dividend is something that we discuss all the time with the board, but we have a very robust conversation. We talk about where are the earnings coming from, what is the cash being generated, where are we in the power cycle – the power price cycle, what are the cash needs of the business, what are our competitors doing, competitors for capital, that is. So it's a very fulsome discussion and not one that lends itself to simply saying x% is the payout ratio. But we do try to guide you qualitatively recognizing that the dividend decisions are the purview of the board on a quarterly basis. But the number we put forth this time we believe is consistent with that view that we can provide a sustainable growth in the dividend.

Thank you so much. Cracking results. Ralph Izzo - Chairman, President & Chief Executive Officer: Okay. Caroline D. Dorsa - Chief Financial Officer & Executive Vice President: Next question?

Your next question comes from the line of Paul Patterson with Glenrock Associates.

Good morning, guys. Caroline D. Dorsa - Chief Financial Officer & Executive Vice President: Good morning. Ralph Izzo - Chairman, President & Chief Executive Officer: Good morning, Paul.

Just really quick, I'm sorry if I missed it. The gas monetization in Q4, could you quantify that? And is there any sort of outlook of what the opportunity might be for stuff like that going forward? Caroline D. Dorsa - Chief Financial Officer & Executive Vice President: Yeah. So I didn't quantify that specifically, Paul, in terms of a number on the quarter. What I did mention was that the gas monetization benefit was essentially similar to what we saw in 2013. So you may recall in 2013 – and I'm talking about this (47:51) differential base in our supply. 2013, it was about $0.05 and in 2014 it was just about the same level. In terms of thinking about it going forward, obviously, we don't control that differential, but two things good to keep in mind. If you look at forward curves, you still see that differential. And so that's valuable and we model everything on the forward curve, including thinking about that differential. What, of course, you can always think about for us that does sustain is that access. Right? So we have the access this year, given what the team has been able to accomplish in terms of providing even more access to (48:33) Marcellus and Utica gas, we've been able to step up that percentage to a total of about 60%. And so, when you have the differential and we've got this long-term access, that's going to stay with us, can't say exactly what percentage every year, but long-term significant access. When that differential is there, you'd expect us to get it.

Okay. And then the polar vortex? It looks like we have some similar conditions out there to what we saw on January 7 of last year and the performance of plant seems to be better. And I'm wondering whether or not you think that might impact the capacity performance proceedings going on right now at FERC? Or, just in general, what do you guys see or what are you hearing out of FERC or anywhere else with respect to how that process is going or your expectations with respect to it? Ralph Izzo - Chairman, President & Chief Executive Officer: So, Paul, you're right. I mean, temperatures have been averaging about 16 degrees below average the last few days and plants are operating. But I think I know for us and I suspect for others, there were some operational changes we're able to make to reduce the amount of forced outages. Just in light of the forecast, we moved our coal piles around a little bit more so that we make sure that we didn't face them freezing up. But what hasn't changed for us and I suspect for others, the amount of capital investment that's being made in the older units, which basically never run until you get six days averaging 16 degrees below zero. And I think FERC is very cognizant of that. So there's only so much you can get out of improved performance by doing some operational prep work and eventually frictional forces that these temperatures overcome, whatever you might do in terms of preparation and those capital improvements are needed. And so, I think FERC will be supportive. I don't want to predict any outcome. I don't want to guarantee an outcome. But suffice it to say that there's really two issues that are involved in making sure a power plant runs. It's what you physically have put into the asset and what you do to ready it. And in terms of physical preparation, it's not leaving coal piles exposed, putting buildings around them, so that they are protected from the elements, that's a capital investment and you're not going to do that unless you know that you're going to get paid in the capacity market, because those typically – in our case at least, aren't units that capture energy margin. So we're still cautiously optimistic about what FERC will do. And we are very confident that whatever FERC does, we do have the type of fleet that will benefit from it.

Okay, great. I appreciate it.

Thank you. Next question?

Your next question comes from the line of Stephen Byrd with Morgan Stanley. Stephen Calder Byrd - Morgan Stanley & Co. LLC: Good morning. Ralph Izzo - Chairman, President & Chief Executive Officer: Good morning, Steve. Caroline D. Dorsa - Chief Financial Officer & Executive Vice President: Good morning. Stephen Calder Byrd - Morgan Stanley & Co. LLC: Wanted to start on the utility. For 2014 and I guess going into 2015, what was the earned ROE at the utility in 2014 and what's the assumption going into 2015 that defines the guidance? Ralph Izzo - Chairman, President & Chief Executive Officer: We earned our allowed returns, Stephen, just you may recall that we have an 11.68% return at transmission, and a blend of 10.3% at the utility for the most – at the distribution level a blend of 10.3% and some of the more recent programs are at 9.75%. Stephen Calder Byrd - Morgan Stanley & Co. LLC: Okay. So the actual results of 2015 were right at your earned level or were they in excess of the earned level? Ralph Izzo - Chairman, President & Chief Executive Officer: They were right at the earned level. Stephen Calder Byrd - Morgan Stanley & Co. LLC: Okay. And... Ralph Izzo - Chairman, President & Chief Executive Officer: We're investing heavily in the utility to make sure that's the case. Stephen Calder Byrd - Morgan Stanley & Co. LLC: Okay. Understood. And what's the timing for the likely filing of the rate case? Ralph Izzo - Chairman, President & Chief Executive Officer: November of 2017. Stephen Calder Byrd - Morgan Stanley & Co. LLC: Is when you would file? Ralph Izzo - Chairman, President & Chief Executive Officer: Is when we would file for a test year that is three months to start and nine years prospective. Typically, we may seek to push it out even further. Stephen Calder Byrd - Morgan Stanley & Co. LLC: Okay. And then, looking over in terms of gas infrastructure, major theme we've seen is more investment in pipelines and we saw your investment there at the Power side. Do you see other potential need for gas infrastructure that looks interesting for you in your service territories, as you look at the growth of gas infrastructure? Ralph Izzo - Chairman, President & Chief Executive Officer: No, not in our service territory. It seems to me that most of the gas pipeline build that's been proposed nowadays for a variety of reasons is going from Marcellus and Utica to the Southeast and to the South. That's a much longer conversation that we can have. There is some very good economic fundamental reasons why that's taking place. I think we're ready for the next question, operator.

Your next question comes from the line from Travis Miller with the Morningstar.

Good morning. Thank you. Ralph Izzo - Chairman, President & Chief Executive Officer: Hi, Travis. Caroline D. Dorsa - Chief Financial Officer & Executive Vice President: Hi, Travis.

Hi. Wonder if you could talk about a little more of the incremental investments that you've discussed here over the last few months about Energy Strong where that stands, what filings we might see in the next three to six months opportunities, the incremental stuff, that's not been approved for Energy Strong? Ralph Izzo - Chairman, President & Chief Executive Officer: Sure, Travis. The pure Energy Strong filing, if you will, had multiple components to it. There were a series of substations, for example, that were a center piece of, I think there were 29 of them that have to be upgraded and there where we are is we're in the engineering and design phase of that work. So that work is probably going to be the longest dated one, and when we do file for additional help in that area that's likely to not be off for at least another year. Another big part of Energy Strong though was the $350 million program to replace some of the cast iron main system. And I think we've done over 200 miles of that already and that is one that is scheduled to pretty much wind down by the end of 2015. So we'll talk more in detail about that on March 2, but that is a filing that we will be making in very, very short order to continue that program. That's important for a whole host of reasons, not the least of which is number one. You don't want to keep mobilizing and then de-mobilizing your workforce to do that. And as I said, that's winding down at the end of the year. But probably equally if not more important is the fact that we've continued to be able to pass these gas credits on to our customers. So…

Okay. How much of all those programs that either haven't been approved or at development process are included in that $2.4 billion CapEx number? Caroline D. Dorsa - Chief Financial Officer & Executive Vice President: None. Ralph Izzo - Chairman, President & Chief Executive Officer: Zero, zero.

Okay. So that's upside. Okay. Thank you very much. Caroline D. Dorsa - Chief Financial Officer & Executive Vice President: Thanks, Travis. Next question?

Your next question comes from the line of Jonathan Arnold with Deutsche Bank.

Good morning guys. Ralph Izzo - Chairman, President & Chief Executive Officer: Good morning, Jon. Caroline D. Dorsa - Chief Financial Officer & Executive Vice President: Good morning.

Quick question on what you've said about the dividend, Ralph. You've been very clear you wanted to be, to grow consistently and sustainably. Does that mean we should anticipate similar percentage growth going forward to what you've just done or similar kind of share growth or how consistent are we talking? Ralph Izzo - Chairman, President & Chief Executive Officer: So, let's just put it this way, Jonathan, about 40 years ago or maybe, I think it was about then, we put a big increase into the dividend, I think it was about an $0.08 or $0.10 increase in the dividend. $0.12. Thank you, Jon. And we went out of our way to tell people that that was a significant resetting of the dividend and not to be expected as an ongoing change in the dividend. And we haven't used those words this time. So I really don't want to be tied to a specific number either from a cents per share or a percentage point of view, except to say that, we think this dividend increase is supportable and sustainable.

It seems you're growing it roughly in line with how you expect the utility earnings to grow this year, I mean, is that kind of the status policy (57:40)? Ralph Izzo - Chairman, President & Chief Executive Officer: Yeah. And again – that's a fair question, Jonathan. And I did say earlier that we look to see where the earnings in the company are coming from because, quite candidly, Power is more cyclical and the utility is more steady. But we don't have a – it's not formulaic. It's not 0.9 Utility plus 0.1 Power or 1.1 Utility plus 0.2 Power. It's clearly the fact that the utility will be well over 50% this year for the second year in a row. It depends on how you define well over. It'll be over 15% for the second year in a row, gives us more confidence in the size of the increase and the sustainability of the increase. But we absolutely know how important it is to the shareholders. We hear about it all the time.

Okay. And then on the credit metrics, I think you mentioned that Power's FFO-to-debt was 59% (58:33) at the end of the year. Is there anything about (58:38) you're forecasting flattish earnings for 2015 in Power at the middle of the range. Is there any reason why FFO-to-debt wouldn't be similar in 2015 as in 2014? Caroline D. Dorsa - Chief Financial Officer & Executive Vice President: No. So, good question, Jonathan. If you look at, you're right, where we landed the year. Power is going to continue to be in very good shape. So I think the way to think about it is FFO-to-debt will continue to be well in excess of our floor of 30% just continuing to provide a lot of investment capacity of Power for the things that Ralph has just been talking about and of course as you know we don't have any parent debt and so that provides us even more opportunity for regulated investments. So yeah, I continue to see Power a very robust and what I like about is it allows us to have that conversation of where else can we make incremental investments, because there is just a lot of room there and that's a nice way to start the conversation about extra capital investment, not talking about issuing equity.

So unless 2016 (59:39) is going to step down very significantly, it seems like mathematically there's no way you can be sub 50% for the 2014, 2015 average, which is I think what your EEI slide showed. Could those numbers be up by that much higher? Is that -- are we on the right track there? Caroline D. Dorsa - Chief Financial Officer & Executive Vice President: Yeah. So, I won't give the specific numbers now on the call and we'll talk more about the long-term view of things on March 2, but I think the right takeaway is that balance sheet is in terrific shape and we look for as Ralph said lots of ways to deploy it. The numbers are in really, really good shape.

Did you come close on Bridgeport Harbor or was it...? Ralph Izzo - Chairman, President & Chief Executive Officer: Nice try, Jon.

All right. Ralph Izzo - Chairman, President & Chief Executive Officer: We're not going to reveal close or not close, because as soon as I give you a qualitative answer, you'll try to narrow me further.

Thank you. Ralph Izzo - Chairman, President & Chief Executive Officer: Thank you.

Ralph is going to have some closing remarks and then we'll complete the call. Thank you. Ralph Izzo - Chairman, President & Chief Executive Officer: Thanks, Kathleen. So something just a little bit out of character. As many of you know – as all of you know, there is probably no bigger fan of our employees than yours truly here. There is one that I just want to make special mention of that, many of you probably have never met before, but after 40 years of service in the industry and 10 years with us, eight years as our chief nuclear officer. We did announce the retirement of Tom Joyce. Tom is just the quintessential professional, not only did he just create tremendous value for our customers and our shareholders, but he did what's expected of every strong leader and that is he leaves behind an incredibly solid team and groomed a talented successor. But I just can't thank Tom enough. And I thanked him yesterday in front of employees. So I want to make sure, I thank him today in front of our investors. As for the rest of my comments, it's simply this, for those of you in the Northeast, I hope you stay warm, hang in there. Our plants are running, our gas pressures on the system are good if not only even Northeast but you are in our service territory. And I hope to see all of you a week from Monday at our annual meeting. So I hope you're as pleased as we are with that result, and the outlook for 2015 looks even stronger. See you soon. Thank you.

Thank you, operator.

Ladies and gentlemen, that does conclude your conference call for today. You may now disconnect. And thank you for your participation.