File No. 1-9120 FORM U-3A-2 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. Statement by Holding Company Claiming Exemption Under Rule U-3A-2 from the Provisions of the Public Utility Holding Company Act of 1935 To Be Filed Annually Prior to March 1 PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED -------------------------------------------- (Name of company) hereby files with the Securities and Exchange Commission, pursuant to Rule 2, its statement claiming exemption as a holding company from the provisions of the Public Utility Holding Company Act of 1935 and submits the following information: 1. Name, State of organization, location and nature of business of claimant, and every subsidiary thereof, other than any exempt wholesale generator (EWG) or foreign utility company in which claimant directly or indirectly holds an interest. 1. Public Service Enterprise Group Incorporated (PSEG), a New Jersey corporation, has its principal executive offices at 80 Park Plaza, Newark, New Jersey 07102, has four direct wholly-owned subsidiaries: Public Service Electric and Gas Company (PSE&G), PSEG Power LLC (Power), PSEG Energy Holdings L.L.C. (Energy Holdings), and PSEG Services Corporation (Services) and has an interest in nine trusts which were formed for financing purposes. PSEG also has 402 indirect subsidiaries, as described below. 1.1. Public Service Electric and Gas Company (PSE&G), a New Jersey corporation, has its principal executive offices at 80 Park Plaza, Newark, New Jersey 07102, is an operating public utility company engaged principally in the transmission, distribution and sale of electric energy service and in the transmission, distribution and sale of gas service in New Jersey. As of December 31, 2003, PSE&G comprised approximately 46% of PSEG's assets. PSE&G's 2003 revenues were approximately 61% of PSEG's revenues and PSE&G's earnings available to PSEG were $225 million. PSE&G has five direct wholly-owned subsidiaries; one direct 99%-owned subsidiary (the remaining 1% of which is owned by PSE&G's subsidiary, Public Service Corporation of New Jersey); one direct 50%-owned subsidiary (the remaining 50% of which is owned by Potomac Electric Power Company, an unrelated corporation); two indirect wholly-owned subsidiaries, and eight direct wholly-owned PSE&G Capital Trust, as described below. 1.1.A. New Jersey Properties, Inc. (NJP), a New Jersey corporation, with principal executive offices at 80 Park Plaza, Newark, New Jersey 07102, acquires real estate from time to time. 1.1.B. Public Service Corporation of New Jersey (PSC of NJ), a New Jersey corporation, with principal executive offices at 80 Park Plaza, Newark, New Jersey 07102. PSC of NJ owns 1% of Public Service New Millennium Economic Development Fund L.L.C. (New Millennium), as described below. 1.1.C. Public Service New Millennium Economic Development Fund L.L.C. (New Millennium) with principal executive offices at 80 Park Plaza, Newark, New Jersey 07102, is a direct, 99%-owned subsidiary of PSE&G, with the remaining 1% owned by PSC of NJ. New Millennium supports economic development and programs providing technology to improve education and health care in urban areas of New Jersey and has one direct, wholly-owned subsidiary, as discussed below. 1.1.D. Tradelink New Jersey International Business Center, Inc. (Tradelink), a New Jersey corporation, with principal executive offices at 80 Park Plaza, Newark, New Jersey 07102, is presently inactive. Tradelink is a direct subsidiary of New Millennium and operates a full-service, turn-key, office-suite facility designed to attract foreign firms to establish a business presence in New Jersey. 1 1.1.E. Gridco International L.L.C. (Gridco International), a Delaware corporation, with principal executive offices at 1209 Orange Street, New Castle County, Wilmington, Delaware 19801, is a direct, 50%-owned subsidiary of PSE&G, with the remaining 50% owned by Potomac Electric Power Company and is presently inactive. 1.1.F. PSE&G Transition Funding LLC (Transition Funding), a Delaware limited liability company, has its principal offices 80 Park Plaza, Newark, New Jersey 07102. PSE&G is the sole member (parent) of Transition Funding. Transition Funding, which was organized for the purpose of purchasing intangible transition property, investing in investment securities, entering into related credit enhancement transactions and issuing transition bonds. 1.1.G. PSEG Area Development L.L.C. (Area Development), a New Jersey limited liability company and a wholly-owned subsidiary of PSE&G, with principal executive offices at 80 Park Plaza, Newark, New Jersey 07102. Area Development, a wholly-owned subsidiary of PSE&G, was formed to hold membership interests in limited liability companies that will provide the following services in New Jersey: real estate site finding, listing and referral, corporate relocation, strategic land use and economic development planning. 1.1.G.1. PSEG SiteFinders L.L.C. (SiteFinders), a New Jersey limited liability company and a wholly-owned subsidiary of Area Development, with principal executive offices at 80 Park Plaza, Newark, New Jersey 07102, was formed to provide real estate site finding and listing and referral services in New Jersey. 1.1.G.2. PSEG Economic Development L.L.C. (Economic Development), a New Jersey limited liability company and a wholly-owned subsidiary of Area Development, with principal executive offices at 80 Park Plaza, Newark, New Jersey 07102. Economic Development was formed to provide corporate relocation, strategic land use and economic development planning services in New Jersey. 1.1.H. PSE&G Capital, L.P., a New Jersey limited partnership, has its principal executive offices at 80 Park Plaza, Newark, New Jersey 07102, of which PSE&G is the sole general partner. PSE&G Capital, L.P. was formed and controlled by PSE&G for the purpose of issuing Monthly Income Preferred Securities, and is presently active. 1.1.I. PSE&G Capital Trust I, a Delaware Trust has its principal executive offices at 80 Park Plaza, Newark, New Jersey 07102, and is presently inactive. 1.1.J. PSE&G Capital Trust II, a Delaware Trust has its principal executive offices at 80 Park Plaza, Newark, New Jersey 07102, which was formed and controlled by PSE&G for the purpose of issuing Quarterly Income Preferred Securities, and is presently active. 1.1.K. PSE&G Capital Trust III, a Delaware Trust has its principal executive offices at 80 Park Plaza, Newark, New Jersey 07102, and is presently inactive. 1.1.L. PSE&G Capital Trust IV, a Delaware Trust has its principal executive offices at 80 Park Plaza, Newark, New Jersey 07102, and is presently inactive. 2 1.1.M. PSE&G Capital Trust V, a Delaware Trust has its principal executive offices at 80 Park Plaza, Newark, New Jersey 07102, and is presently inactive. 1.1.N. PSE&G Capital Trust VI, a Delaware Trust has its principal executive offices at 80 Park Plaza, Newark, New Jersey 07102, and is presently inactive. 1.1.O. PSE&G Capital Trust VII, a Delaware Trust has its principal executive offices at 80 Park Plaza, Newark, New Jersey 07102, and is presently inactive. 1.2. PSEG Power LLC (Power), a Delaware limited liability company and a wholly-owned subsidiary of PSEG, has its principal executive offices at 80 Park Plaza, Newark, New Jersey 07102. Power is a multi-regional, independent wholesale energy supply company that integrates its generating asset operations with its wholesale energy, fuel supply, energy trading and marketing and risk management functions. Power has six direct wholly-owned subsidiaries, and has an interest in five trusts which were formed for financing purposes, and eleven indirect wholly-owned subsidiaries, discussed below. As of December 31, 2003, Power comprised approximately 27% of PSEG's assets. Power's 2003 revenues were approximately 50% of PSEG's revenues and Power's 2003 earnings available to PSEG were $844 million. 1.2.A. PSEG Fossil LLC (Fossil), a Delaware limited liability company, has its principal executive offices at 80 Park Plaza, Newark, New Jersey 07102, and is an EWG. Fossil was formed to own and operate fossil fueled generating stations. Fossil has seven direct wholly-owned subsidiaries, as discussed below. 1.2.A.1. PSEG Power New York Inc. (Power New York), a Delaware corporation and is an EWG, has its principal executive offices at Route 144 Glenmont, New York 12077. Power New York was formed to own and operate fossil fueled generating stations. Power New York has one direct wholly-owned subsidiary, as discussed below. 1.2.A.1.(a) PSEG Power Hudson LLC (Power Hudson), a New York limited liability company, has its registered office at 111 Eighth Avenue, New York, NY 10011. Power Hudson was formed to acquire fossil fueled generating stations located in the state of New York. 1.2.A.2. PSEG Power Cross Hudson Corporation (Cross Hudson), a Delaware corporation, has its registered office at 1209 Orange Street, Wilmington, Delaware 19801, was formed for the purpose of developing power projects for delivery into New York City. Cross Hudson has two direct wholly-owned subsidiaries, as discussed below. 1.2.A.2.(a) PSEG In-City I LLC, a Delaware limited liability company, has its registered office at 1209 Orange Street, Wilmington, Delaware 19801, was formed for the purpose of developing power projects for delivery into New York City. 1.2.A.2.(b) PSEG In-City II LLC, a Delaware limited liability company, has its registered office at 1209 Orange Street, Wilmington, Delaware 19801, was formed for the purpose of developing power projects for delivery into New York City. 3 1.2.A.3. PSEG Lawrenceburg Energy Company LLC (PSEG Lawrenceburg), a Delaware limited liability company, is an EWG and has its registered office at 1209 Orange Street, Wilmington, Delaware 19801, was formed for the purpose of investing in a power facility in Lawrenceburg, Indiana. PSEG Lawrenceburg is a wholly-owned subsidiary of Fossil. 1.2.A.4. PSEG Power Bellport LLC, a Delaware limited liability company, has its registered office at 1209 Orange Street, Wilmington, Delaware 19801, was formed for the purpose of investing in power facilities in Indiana. 1.2.A.5. PSEG Waterford Energy LLC (PSEG Waterford), a Delaware limited liability company, has its registered office at 1209 Orange Street, Wilmington, Delaware 19801, was formed for the purpose of investing in a power facility in Waterford, Ohio, and is an EWG. PSEG Waterford is a wholly-owned subsidiary of Fossil and commenced operation in August 2003. 1.2.A.6. PSEG Power Midwest LLC (Power Midwest), a Delaware limited liability company, is an EWG and has its registered office at 1209 Orange Street, Wilmington, Delaware 19801, was formed for the purpose of operating power facilities in the Midwestern United States. 1.2.A.7. PSEG Power Connecticut LLC (Power Connecticut), a Connecticut limited liability company, has its registered office at 1 Commercial Plaza, Hartford, Connecticut 06103 in care of CT Corporation Systems. Power Connecticut is an EWG and was formed for the purpose to own and operate fossil-fueled electric generation assets in Connecticut. 1.2.B. PSEG Nuclear LLC (Nuclear), a Delaware limited liability company, has its principal executive offices at 80 Park Plaza, Newark, New Jersey 07102, is an EWG and was formed to own and operate the nuclear-fueled electric generation assets. Nuclear has one direct wholly-owned subsidiary, as discussed below. 1.2.B.1 The Francis Corporation (TFC), a New Jersey corporation, has its principal executive offices at 80 Park Plaza, Newark, New Jersey 07102, acquires real estate from time to time. 1.2.C. PSEG Power Fuels LLC (Power Fuels), a Delaware limited liability company, has its registered office at 1209 Orange Street, Wilmington, Delaware 19801, was formed in 2000 to hold an interest in Keystone Fuel LLC. 1.2.D. PSEG Energy Resources & Trade LLC (ER&T), a Delaware limited liability company, has its principal executive offices at 80 Park Plaza, Newark, New Jersey 07102. ER&T markets electricity, natural gas and capacity and ancillary services throughout the greater North East region (Northeast, Mid-Atlantic and Mid-West) of the United States. 4 1.2.E. PSEG Power Capital Investment Co. LLC (Power Capital LLC), a Delaware limited liability company, formerly PSEG Power Capital Investment Co. (Power Capital), a Delaware corporation, has its principal executive offices at 1300 Market Street, Suite 602, Wilmington, Delaware 19801, was formed to provide financing to Power and its subsidiaries. On January 31, 2003, Power Capital was converted to a limited liability company under Delaware law by filing a certificate of conversion and certificate of formation with the Office of the Delaware Secretary of State. Power Capital LLC is the result of the conversion. 1.2.F. PSEG Power Development LLC (formerly PSEG Americas Development LLC), a Delaware limited liability company, has its registered office at 1209 Orange Street, Wilmington, Delaware 19801, was formed to support continuing development activities of Power. 1.2.G. PSEG Power Capital Trust I, a Delaware Trust has its principal executive offices at 80 Park Plaza, Newark, New Jersey 07102, and is presently inactive. 1.2.H. PSEG Power Capital Trust II, a Delaware Trust has its principal executive offices at 80 Park Plaza, Newark, New Jersey 07102, and is presently inactive. 1.2.I. PSEG Power Capital Trust III, a Delaware Trust has its principal executive offices at 80 Park Plaza, Newark, New Jersey 07102, and is presently inactive. 1.2.J. PSEG Power Capital Trust IV, a Delaware Trust has its principal executive offices at 80 Park Plaza, Newark, New Jersey 07102, and is presently inactive. 1.2.K. PSEG Power Capital Trust V, a Delaware Trust has its principal executive offices at 80 Park Plaza, Newark, New Jersey 07102, and is presently inactive. 1.3. PSEG Energy Holdings L.L.C. (Energy Holdings), a New Jersey limited liability company, has its principal executive offices at 80 Park Plaza, Newark, New Jersey 07102. Energy Holdings is the parent of PSEG's energy-related businesses other than Power and PSE&G. As of December 31, 2003, Energy Holdings comprised approximately 27% of PSEG's assets. Energy Holdings' 2003 revenues were approximately 6% of PSEG's revenues and Energy Holdings' 2003 earnings available to PSEG were $122 million. Energy Holdings' has six direct wholly-owned subsidiaries, and 357 indirect subsidiaries, as described below. 1.3.A. PSEG Resources L.L.C. (PSEG Resources), a New Jersey limited liability company, has its principal executive offices at 80 Park Plaza, Newark, New Jersey 07102. PSEG Resources provides energy infrastructure financing in developed countries. PSEG Resources invests primarily in energy-related, financial transactions and manages a diversified portfolio of more than 60 investments, including leveraged leases, operating leases and leveraged buyout (LBO) funds, limited partnerships and marketable securities. The remainder of PSEG Resources' portfolio is further diversified across a wide spectrum of asset types and business sectors, including leveraged leases of aircraft and railcar, real estate and industrial equipment, limited partnership interests in project finance transactions, LBO and venture funds and marketable securities. Some of the transactions in which PSEG Resources and its subsidiaries participate involve other equity investors. As of December 31, 2003, PSEG Resources comprised 5 approximately 12% of PSEG's assets. PSEG Resources' 2003 revenues were approximately 2% of PSEG's revenues and PSEG Resources' 2003 earnings available to PSEG were $66 million. PSEG Resources is a wholly-owned subsidiary of Energy Holdings. PSEG Resources has three direct and forty-one indirect wholly-owned subsidiaries, as described below. 1.3.A.1. Public Service Resources Corporation (PSRC), a New Jersey corporation, has its principal executive offices at 80 Park Plaza, Newark, New Jersey 07102. PSRC invests primarily in energy-related financial transactions and manages a diversified portfolio of investments, including leveraged leases, operating leases, leveraged buyout (LBO) funds, limited partnerships and marketable securities. The remainder of PSRC's portfolio is further diversified across a wide spectrum of asset types and business sectors, including leveraged leases of aircraft and railcar, real estate and industrial equipment, limited partnership interests in project finance transactions, LBO and venture funds and marketable securities. Some of the transactions in which PSRC and its subsidiaries participate involve other equity investors. PSRC has thirteen direct and twenty-one indirect wholly-owned subsidiaries, as described below. 1.3.A.1.(a) Resources Capital Financing Corporation (RCFC), a New Jersey corporation, has its principal executive offices at 80 Park Plaza, Newark, New Jersey 07102. RCFC is presently inactive. 1.3.A.1.(b) Resources Capital Investment Corporation (RCIC), a New Jersey corporation, has its principal executive offices at 80 Park Plaza, Newark, New Jersey 07102. RCIC has investments in several, leveraged, lease transactions. RCIC has one direct wholly-owned subsidiary, as described below. 1.3.A.1.(b)(i) Peterborough Power Limited C, Inc. (PPLC), a Delaware corporation, has its principal executive offices at 1300 North Market Street, Suite 400, Wilmington, Delaware 19801. PPLC is presently inactive. 1.3.A.1.(c) Resources Capital Sales Corporation (RCSC) is incorporated under the laws of the United States Virgin Islands and has its principal executive offices at 50 Kronprindsens, 2nd Floor, GERS Building, Saint Thomas, United States Virgin Islands 00802. RCSC was formed as a foreign sales corporation (FSC) under the Internal Revenue Code for the purpose of arranging the export of sales and leases of United States manufactured products, including the financing, management, negotiation and contracting of such sales and leases. 1.3.A.1.(d) Resources Capital Management Corporation (RCMC), a New Jersey corporation, has its principal executive offices at 80 Park Plaza, Newark, New Jersey 07102. As of December 31, 2003, RCMC comprised of approximately 3% of PSEG's assets. RCMC's 2003 revenues were less than 1% of PSEG's revenues and RCMC's 2003 earnings available to PSEG were $49 million. RCMC has investments in a project financing and several, leveraged leases. RCMC has seven direct and three indirect wholly-owned subsidiaries, as described below. 1.3.A.1.(d)(i) LMC Phase II L.L.C. (LMC), a Delaware limited liability company, has its principal executive offices at 80 Park Plaza, Newark, New Jersey 07102. LMC acts as ground lessee, operating lessor and borrower of a first-mortgage loan with respect to the leveraged, lease investment of RCMC in a Detroit, Michigan office complex. 6 1.3.A.1.(d)(ii) RCMC Sales Corporation (RCMC SC) is incorporated under the laws of the United States Virgin Islands and has its principal executive offices at 50 Kronprindsens Gade, 2nd Floor, GERS Building, Saint Thomas, United States Virgin Islands 00802. RCMC SC was formed as an FSC, and is presently inactive. 1.3.A.1.(d)(iii) RCMC One, Incorporated, a New Jersey corporation, has its principal executive offices at 80 Park Plaza, Newark, New Jersey 07102, and is presently inactive. 1.3.A.1.(d)(iv) RCMC, Inc. (RCMCI), a Delaware corporation, has its principal executive offices at 1300 Market Street, Suite 400, Wilmington, Delaware 19801. RCMCI has a limited partnership investment in an advanced flue-gas desulphurization facility in Porter County, Indiana. RCMCI has one direct wholly-owned subsidiary, as described below. 1.3.A.1.(d)(iv)(A) KLF 98-C2, Inc. (KLFC2), a Delaware corporation, with principal, executive offices at 1300 North Market Street, Suite 405, Wilmington, Delaware 19801, and is presently inactive. 1.3.A.1.(d)(v) RCMC I, Inc. (RCMC I), a Delaware corporation, has its principal executive offices at 1300 Market Street, Suite 405, Wilmington, Delaware 19801. RCMC I has investments in a leveraged lease of an undivided interest of System Energy Resources Inc.'s interest in a nuclear generating station in Port Gibson, Mississippi and in a leveraged lease of an office facility in Denver, Colorado. 1.3.A.1.(d)(vi) Danskammer OP LLC, (Danskammer OP), a Delaware limited liability company, has its principal executive offices at 1300 North Market Street, Suite 400, Wilmington, Delaware 19801. Danskammer OP is the Owner Participant in connection with RCMC's investment in the Danskammer facility, an oil/natural gas-fired boiler and steam turbine generator, and an undivided interest in certain common facilities related thereto located in Newburgh, New York and is an EWG. On June 3, 2003, PSEG Newburgh Holdings LLC (Newburgh), Danskammer OP's former parent, was merged into RCMC and Danskammer OP became a direct wholly-owned subsidiary of RCMC. Danskammer OP has one direct wholly-owned subsidiary, as described below. 1.3.A.1.(d)(vi)(A) Danskammer OL LLC, (Danskammer OL), a Delaware limited liability company has its principal executive offices at 1300 North Market Street, Suite 400, Wilmington, Delaware 19801. Danskammer OL is the Owner Lessor in connection with RCMC's investment in the Danskammer facility, an oil/natural gas-fired boiler and steam turbine generator, and an undivided interest in certain common facilities related thereto located in Newburgh, New York and is an EWG. 7 1.3.A.1.(d)(vii) Roseton OP LLC, (Roseton OP), a Delaware limited liability company, has its principal executive offices at 1300 North Market Street, Suite 400, Wilmington, Delaware 19801. Roseton OP is the Owner Participant in connection with RCMC's investment in the Roseton facility, an oil/natural gas-fired boiler and steam turbine generator, and an undivided interest in certain common facilities related thereto located in Newburgh, New York and is an EWG. On June 3, 2003, Newburgh Roseton OP's former parent, was merged into RCMC and Roseton OP became a direct, wholly-owned subsidiary of RCMC. Roseton OP has one direct wholly-owned subsidiary, as described below. 1.3A.1.(d)(vii)(A) Roseton OL LLC (Roseton OL), a Delaware limited liability company has its principal executive offices at 1300 North Market Street, Suite 400, Wilmington, Delaware 19801. Roseton OL is the Owner Lessor in connection with RCMC's investment in the Roseton facility, an oil/natural gas-fired boiler and steam turbine generator, and an undivided interest in certain common facilities related thereto located in Newburgh, New York and is an EWG. 1.3.A.1.(e) PSRC Sales Corporation One (PSRC One) is incorporated under the laws of the United States Virgin Islands, has its principal executive offices at 50 Kronprindsens Gade, 2nd Floor, GERS Building, Saint Thomas, United States Virgin Islands 00802, was formed as an FSC. 1.3.A.1.(f) PSRC Sales Corporation Two (PSRC Two) is incorporated under the laws of the United States Virgin Islands, has its principal executive offices at 50 Kronprindsens Gade, 2nd Floor, GERS Building, Saint Thomas, United States Virgin Islands 00802, was formed as an FSC. 1.3.A.1.(g) PSRC Sales Corporation Three (PSRC Three) is incorporated under the laws of the United States Virgin Islands, has its principal executive offices at 50 Kronprindsens Gade, 2nd Floor, GERS Building, Saint Thomas, United States Virgin Islands 00802, was formed as an FSC, and is presently inactive. 1.3.A.1.(h) PSRC Sales Corporation Four (PSRC Four) is incorporated under the laws of the United States Virgin Islands, with principal executive offices at 50 Kronprindsens Gade, 2nd Floor, GERS Building, Saint Thomas, United States Virgin Islands 00802, was formed as an FSC. 1.3.A.1.(i) PSRC, Inc. (PSRCI), a Delaware corporation, has its principal executive offices at 1300 Market Street, Suite 400, Wilmington, Delaware 19801. PSRCI has investments in two leveraged lease transactions. PSRCI has one direct wholly-owned subsidiary, as described below. 1.3.A.1.(i)(i) PPL B KLF 98-C1, Inc. (PPLKLF), a Delaware corporation, has its principal executive offices at 1300 North Market Street, Suite 400, Wilmington, Delaware 19801, and is presently inactive. 1.3.A.1.(j) PSRC II, Inc. (PSRC II), a Delaware corporation, has its principal executive offices at 1300 Market Street, Suite 400, Wilmington, Delaware 19801, and has investments in leveraged buyout funds, limited partnerships and securities. 8 1.3.A.1.(k) Enterprise Energy Technology Group, Inc., a Delaware corporation has its principal, executive offices at 1300 Market Street, Suite 400, Wilmington, Delaware 19801, and is presently inactive. 1.3.A.1.(l) PSEGR PJM LLC (PSEGR PJM), a Delaware limited liability company, has its principal executive offices at 80 Park Plaza, Newark, New Jersey 07102. PSEGR PJM has indirect investments in three generation facilities: (1) the Conemaugh Station (Conemaugh), a generating facility located near New Florence, Pennsylvania, in which PSEGR PJM indirectly owns an undivided interest, (2) the Keystone Station (Keystone), a generating facility located in Plumcreek Township, Pennsylvania, in which PSEGR PJM indirectly owns an undivided interest, and (3) the Shawville Station (Shawville), a generating facility located in Bradford Township, Pennsylvania, in which PSEGR PJM indirectly owns a 100% interest. PSEGR PJM has three direct and six indirect wholly-owned subsidiaries, as described below. 1.3.A.1.(l)(i) PSEGR Conemaugh, LLC (PSEGR Conemaugh), a Delaware limited liability company, has its principal executive offices at 80 Park Plaza, Newark, New Jersey 07102. PSEGR Conemaugh has an indirect investment in Conemaugh. PSEGR Conemaugh has one direct and one indirect wholly-owned subsidiary, as described below. 1.3.A.1.(l)(i)(A) PSEGR Conemaugh Generation, LLC (Conemaugh Generation), a Delaware limited liability company, has its principal executive offices at 80 Park Plaza, Newark, New Jersey 07102. Conemaugh Generation is the Owner Participant in connection with an undivided interest in two coal fired generators and four emergency diesel generators with an aggregate station capacity of approximately 1,711 megawatts located in New Florence, Pennsylvania (Conemaugh). Conemaugh Generation has one direct wholly-owned subsidiary, as described below. 1.3.A.1.(l)(i)(A)(i) Conemaugh Lessor Genco LLC (Conemaugh Lessor), a Delaware limited liability company, is an EWG, and has its principal executive offices at 80 Park Plaza, Newark, New Jersey 07102. Conemaugh Lessor is the lessor of an undivided interest in Conemaugh. 1.3.A.1.(l)(ii) PSEGR Keystone, LLC (PSEGR Keystone), a Delaware limited liability company, has its principal executive offices at 80 Park Plaza, Newark, New Jersey 07102. PSEGR Keystone has an indirect investment in Keystone. PSEGR Keystone has one direct, and one indirect wholly-owned subsidiary, as described below. 1.3.A.1.(l)(ii)(A) PSEGR Keystone Generation, LLC (Keystone Generation), a Delaware limited liability company, has its principal executive offices at 80 Park Plaza, Newark, New Jersey 07102. Keystone Generation is the Owner Participant in connection with an undivided interest in two coal fired generators and four emergency diesel generators with an aggregate station capacity of approximately 1,711 megawatts located in Plumcreek Township, Pennsylvania (Keystone). Keystone Generation has one direct wholly-owned subsidiary, as described below. 1.3.A.1.(l)(ii)(A)(i) Keystone Lessor Genco LLC (Keystone Lessor), a Delaware limited liability company, has its principal executive offices at 80 Park Plaza, Newark, New Jersey 07102. Keystone Lessor is the lessor of an undivided interest in Keystone and is an EWG. 9 1.3.A.1.(l)(iii) PSEGR Shawville, LLC (PSEGR Shawville), a Delaware limited liability company, has its principal executive offices at 80 Park Plaza, Newark, New Jersey 07102. PSEGR Shawville has an indirect investment in Shawville. PSEGR Shawville has one direct, and one indirect wholly-owned subsidiary, as described below. 1.3.A.1.(l)(iii)(A) PSEGR Shawville Generation, LLC (Shawville Generation), a Delaware limited liability company, has its principal executive offices at 80 Park Plaza, Newark, New Jersey 07102. Shawville Generation is the Owner Participant in connection with an undivided interest in four coal fired steam turbine generators and three diesel fired generators with an aggregate station capacity of approximately 613 megawatts located in Bradford Township, Pennsylvania (Shawville). Shawville Generation has one direct wholly-owned subsidiary, as described below. 1.3.A.1.(l)(iii)(A)(i) Shawville Lessor Genco LLC (Shawville Lessor), a Delaware limited liability company, has its principal executive offices at 80 Park Plaza, Newark, New Jersey 07102. Shawville Lessor is the lessor of an undivided interest in Shawville and is an EWG. 1.3.A.1.(m) PSEG Demand Management Co., Inc., (DMC), a Delaware corporation, has its principal executive offices at 80 Park Plaza, Newark, New Jersey 07102. DMC is a party to certain demand-side, management contracts. On August 4, 2003, PSEG Asset Management Co. Inc. (AMC), DMC's former parent, PSEG Asset Co. 1, Inc. (AC1), and PSEG Asset Services Co., Inc (ASC) were merged into DMC, and DMC became a direct wholly-owned subsidiary of PSRC. 1.3.A.2. Nesbitt Asset Recovery LLC., (Nesbitt), a Delaware limited liability company with various series contained within Nesbitt, has its principal executive offices at 1300 North Market Street, Suite 400, Wilmington, Delaware 19801, was formed on September 12, 2003, in connection with a restructuring of PSEG Resources indirect investments in the Collins, Powerton and Joliet generating facilities. On October 7, 2003, the member interests in Collins Generation and PSEGR Midwest LLC were transferred, respectively, to Series CG, a duly constituted series within Nesbitt, and Series MW, a duly constituted series within Nesbitt. Nesbitt has one direct and four indirect wholly-owned subsidiaries, as described below. 1.3.A.2.(a) PSEG Collins Generation, LLC (Collins Generation), a Delaware limited liability company, has its principal executive offices at 80 Park Plaza, Newark, New Jersey 07102, was formed to act as an intermediate holding company with respect to an investment (the Collins Transaction) in five gas/oil fired, steam generating units located in Grundy County, Illinois. On October 7, 2003, Collins Generation's equity investor interests with respect to the Collins Transaction were transferred to Series CG, a duly constituted series within Nesbitt. Collins Generation is presently inactive. Collins Generation has four direct wholly-owned subsidiaries, as described below. 1.3.A.2.(a)(i) Collins Generation I, LLC (Collins I), a Delaware limited liability company, has its principal executive offices at 80 Park Plaza, Newark, New Jersey 07102, was formed to act as the Owner Participant in connection with an undivided interest in five gas/oil-fired, steam-generating units located in Grundy County, Illinois. On October 7, 2003, the beneficial interest in the Collins Transaction held by Collins I was transferred to Series C-1, a duly constituted series within Nesbitt. Collins Generation is presently inactive. 10 1.3.A.2.(a)(ii) Collins Generation II, LLC (Collins II), a Delaware limited liability company, has its principal executive offices at 80 Park Plaza, Newark, New Jersey 07102, was formed to act as the Owner Participant in connection with an undivided interest in five gas/oil-fired, steam-generating units located in Grundy County, Illinois. On October 7, 2003, the beneficial interest in the Collins Transaction held by Collins II was transferred to Series C-2, a duly constituted series within Nesbitt. Collins Generation is presently inactive. 1.3.A.2.(a)(iii) Collins Generation III, LLC (Collins III), a Delaware limited liability company, has its principal executive offices at 80 Park Plaza, Newark, New Jersey 07102, was formed to act as the Owner Participant in connection with an undivided interest in five gas/oil-fired, steam-generating units located in Grundy County, Illinois. On October 7, 2003, the beneficial interest in the Collins Transaction held by Collins III was transferred to Series C-3, a duly constituted series within Nesbitt. Collins Generation is presently inactive. 1.3.A.2.(a)(iv) Collins Generation IV, LLC (Collins IV), a Delaware limited liability company, has its principal executive offices at 80 Park Plaza, Newark, New Jersey 07102, was formed to act as the Owner Participant in connection with an undivided interest in five gas/oil-fired, steam-generating units located in Grundy County, Illinois. On October 7, 2003, the beneficial interest in the Collins Transaction held by Collins IV was transferred to Series C-4, a duly constituted series within Nesbitt. Collins Generation is presently inactive. 1.3.A.3. PSEGR Midwest, LLC (PSEGR Midwest), a Delaware limited liability company, has its principal executive offices at 80 Park Plaza, Newark, New Jersey 07102, was formed to act as an intermediate holding company with respect to an investment (the EME 2 Transaction) in two, coal-fired, steam-generating units located in Pekin, Illinois (Powerton) and Joliet, Illinois (Joliet), with a collective capacity of approximately 2,582 megawatts. On October 7, 2003, PSEGR Midwest's equity investor interests with respect to the EME 2 Transaction were transferred to Series MW, a duly constituted series within Nesbitt. PSEGR Midwest is presently inactive and has two direct wholly-owned subsidiaries, as described below. 1.3.A.3.(a) Powerton Generation I, LLC (Powerton Generation), a Delaware limited liability company, has its principal executive offices at 80 Park Plaza, Newark, New Jersey 07102, was formed to act as the Owner Participant in connection with a 100% interest in Powerton. On October 7, 2003, the beneficial interest in held by Powerton Generation was transferred to Series P-1, a duly constituted series within Nesbitt. Powerton Generation is presently inactive. 1.3.A.3.(b) Joliet Generation I, LLC (Joliet Generation), a Delaware limited liability company, has its principal executive offices at 80 Park Plaza, Newark, New Jersey 07102, was formed to act as the Owner Participant in connection with a 100% interest in Joliet. On October 7, 2003, the beneficial interest in held by Joliet Generation was transferred to Series J-1, a duly constituted series within Nesbitt. Joliet Generation is presently inactive. 11 1.3.B. PSEG Global L.L.C. (Global), a New Jersey limited liability company, with principal executive offices at 80 Park Plaza, Newark, New Jersey 07102. In 2003, PSEG Global Inc. (PSEG Global) merged into Global. Global participates in the development and operation of projects in the generation and distribution of energy, which includes cogeneration and independent power-production (IPP) facilities and electric distribution companies. Some of the cogeneration and IPP facilities are domestic facilities designated as "qualifying facilities" (QFs) under the Public Utility Regulatory Policies Act of 1978, as amended. Also, some of the remaining facilities are "foreign utility companies" (FUCOs) while some are EWGs under the Public Utility Holding Company Act of 1935, as amended. Global is a wholly-owned subsidiary of Energy Holdings. Global has six direct wholly-owned subsidiaries: PSEG Baja Inc. (Baja), PSEG Global USA Inc. (Global USA), PSEG Global USA L.L.C., PSEG India Company, PSEG Europe (Delaware) LLC (PEDLLC), and PSEG Global International Holdings LLC (PGIHLLC), as well as many indirect subsidiaries including limited and general partnership interests. Baja is presently inactive. Global USA and its direct and indirect subsidiaries primarily hold investments in domestic generation projects. PSEG Global USA L.L.C. has been formed for the purpose of eventually holding the assets of Global USA. PSEG India Company and its subsidiaries have an investment in an Indian project. PEDLLC and its subsidiaries hold investments in projects in Europe. PGIHLLC and its subsidiaries hold investments in projects internationally. In addition to its investment in Baja, Global USA, PSEG Global USA L.L.C., PSEG India Company, PEDLLC, PGIHLLC, and Global is a limited partner in Luz Solar Partners Ltd. III (8.202% limited partnership interest), which owns an 86.842% partnership interest in Solar Generating System III, which owns a solar facility in Kramer Junction, California that is a QF. As of December 31, 2003, Global comprised of approximately 14% PSEG's assets. Global's 2003 revenues were approximately 4% of PSEG's revenues and Global's 2003 earnings available to PSEG were $81 million. 1.3.B.1. PSEG Baja Inc. (Baja), a Delaware corporation, with registered office at 300 Delaware Avenue, Suite 900, Wilmington, Delaware 19801, is presently inactive. 1.3.B.2. PSEG Global USA Inc. (Global USA), a New Jersey corporation, with principal executive offices at 80 Park Plaza, Newark, New Jersey 07102. Global USA has a total of 23 direct and 76 indirect subsidiaries including limited and general partnership interests as described below. 1.3.B.2.(a) CEMAS Corporation, a Delaware corporation, with registered office at 300 Delaware Avenue, Suite 900, Wilmington, Delaware 19801, was formed for the purpose of investing in Latin America. 1.3.B.2.(b) PSEG Sviluppo S.r.L., an Italian company, with registered office at Corso of Porta Vigentina 35, 20122 Milan, Italy, was formed for the purpose of asset management in Italy. PSEG Sviluppo S.r.L is owned 98% by Global USA and 2% by PSEG International Inc. Dissolution proceedings were started January 1, 2003 and are presently on-going. 1.3.B.2.(c) National Energy Partners, a Delaware general partnership, with principal executive offices at 80 Park Plaza, Newark, New Jersey 07102, owns 100% of GWF Power Systems Company, Inc. (GWF PSC). Global USA is a 50% general partner in National Energy Partners. National Energy Partners has the following, direct and indirect subsidiaries as described below. 12 1.3.B.2.(c)(i) GWF Power Systems Company, Inc., a California corporation, with principal executive offices at 4300 Railroad Avenue, Pittsburg, California 94565, which has the following direct and indirect wholly-owned and partially-owned subsidiaries as described below. 1.3.B.2.(c)(i)(A) GWF Bay Area, Inc., a California corporation, with principal executive offices at 4300 Railroad Avenue, Pittsburg, California 94565, is a 2% managing general partner of GWF Power Systems, L.P. (GWFLP). GWF Bay Area, Inc. is an indirect 50%-owned subsidiary of Global USA. 1.3.B.2.(c)(i)(A)(i) GWF Power Systems, L.P. (GWFLP), a Delaware limited partnership, with principal executive offices at 4300 Railroad Avenue, Pittsburg, California 94565, owns and operates five, petroleum, coke-fired, small-power, production QFs in Contra Costa County, California. Global USA directly owns a 48.5%, limited partnership interest in GWFLP. In addition, PSEG Bay Area Inc., as described below, owns a 0.5%, general partnership interest, and GWF Bay Area, Inc., owns a 2% general-partnership interest, in GWFLP. 1.3.B.2.(c)(i)(B) GWF Hanford, Inc., a California corporation, with principal executive offices at 4300 Railroad Avenue, Pittsburg, California 94565, which is a 2% managing general partner of Hanford, L.P. (HLP). GWF Hanford, Inc. is an indirect 50%-owned subsidiary of Global USA. 1.3.B.2.(c)(i)(B)(i) Hanford, L.P. (HLP), a Delaware limited partnership, with principal executive offices at 4300 Railroad Avenue, Pittsburg, California 94565, is the owner of a petroleum, coke-fired, small-power, production QF in Hanford, California. Global USA directly owns a 48.5%, limited partnership interest in HLP. PSEG Hanford Inc., as described below, owns a 0.5%, general partnership interest in HLP, and GWF Hanford, Inc. owns a 2%, general partnership interest, in HLP. 1.3.B.2.(d) PSEG Asia Inc., a Delaware corporation, with principal executive offices at Room 1701 Harbour Centre, 25 Harbour Road, Wanchai, Hong Kong Special Administrative Region (Hong Kong), People's Republic of China (China), is presently inactive. PSEG Asia Inc. has one direct wholly-owned subsidiary, as described below. 1.3.B.2.(d)(i) PSEG Asia Ltd., a Bermuda limited liability company, with principal executive offices at Clarendon House, 2 Church Street, Hamilton, Bermuda, is a developer of EWG and FUCO power production facilities in Asia. PSEG Asia Ltd. is presently inactive. 1.3.B.2.(e) PSEG Conemaugh Management Inc., a New Jersey corporation, with principal executive offices at 80 Park Plaza, Newark, New Jersey 07102, is a 0.5% general partner in Pennsylvania Renewable Resources, Associates (PRRA). 1.3.B.2.(e)(i) Pennsylvania Renewable Resources, Associates (PRRA), a Pennsylvania limited partnership, with principal executive offices at 1370 Avenue of the Americas, Suite 3300, New York, New York 10019, which owns a hydroelectric QF in Saltsburg, Pennsylvania. PSEG Mount Carmel Inc., as described below is a 49.5% limited partner in PRRA. 1.3.B.2.(f) PSEG GWF Inc., a New Jersey corporation, with principal executive offices at 80 Park Plaza, Newark, New Jersey 07102, which has the following direct wholly-owned subsidiaries as described below. 13 1.3.B.2.(f)(i) PSEG Bay Area Inc., a Delaware corporation, with principal executive offices at 4300 Railroad Avenue, Pittsburg, California 94565, is a 0.5% general partner in GWFLP, which is the owner and operator of five petroleum coke-fired small-power production facilities in Contra Costa County, California. All five facilities are QFs. 1.3.B.2.(f)(ii) PSEG Hanford Inc, a Delaware corporation, with principal executive offices at 4300 Railroad Avenue, Pittsburg, California 94565, is a 0.5% general partner in HLP, which is the owner of a petroleum coke-fired small-power production QF in Hanford, California. 1.3.B.2.(g) PSEG Hawaiian Investment Inc., a Delaware corporation, with registered office at 1209 Orange Street, Wilmington, Delaware 19801, owns a 48.49%, limited-partnership interest in Kalaeloa Investment Partners, L.P. (KIPLP), a Delaware limited partnership. 1.3.B.2.(h) PSEG Hawaiian Management Inc., a Delaware corporation, with registered office at 1209 Orange Street, Wilmington, Delaware 19801, is a 1% general partner in KIPLP. 1.3.B.2.(h)(i) Kalaeloa Investment Partners, LP (KIPLP), a Delaware limited partnership, with registered office at 1209 Orange Street, Wilmington, Delaware 19801, owns a 99% limited-partnership interest in Kalaeloa Partners, L.P. (KPLP). 1.3.B.2.(h)(i)(A) Kalaeloa Partners, L.P. (KPLP), a Delaware limited partnership and an EWG, with registered office at 1209 Orange Street, Wilmington, Delaware 19801, and owns a heavy oil-fired cogeneration QF on the Island of Oahu in Hawaii. 1.3.B.2.(i) KI Holdings Inc., a Delaware corporation, with registered office at 1209 Orange Street, Wilmington, Delaware 19801, is presently inactive. KI Holdings Inc. has the following direct wholly-owned subsidiary, as described below. 1.3.B.2.(i)(i) PSEG Merger Inc., a Delaware corporation, with registered office at 1209 Orange Street, Wilmington, Delaware 19801, is presently inactive. 1.3.B.2.(j) PSEG India Inc., a Delaware corporation, with registered office at 1209 Orange Street, Wilmington, Delaware 19801, holds one share of PSEG India Private Limited (PIPL). 1.3.B.2.(k) PSEG India Private Limited (PIPL), an Indian company, with registered office at No. 81 Murugesa Naicker Office Complex, Greams Road, Chennai, 600 006, India, was formed for the purpose of developing power-production facilities in India. PIPL is presently inactive. Global USA owns all but one share of PIPL. The remaining one (1) share is owned by PSEG India Inc. 1.3.B.2.(l) PSEG International Services Inc., a Delaware corporation, with registered office at 1209 Orange Street, Wilmington, Delaware 19801, provides management operations and maintenance personnel to some of the international subsidiaries of Global USA. 14 1.3.B.2.(m) PSEG Kalaeloa Inc., a Delaware corporation, with registered office at 1209 Orange Street, Wilmington, Delaware 19801, was formed for the purpose of acquiring a 1%, general-partnership interest in KPLP, a Delaware limited partnership. The remaining 99%, limited-partnership interest is owned by KIPLP. 1.3.B.2.(n) PSEG Leasing Inc., a New Jersey corporation, with principal executive offices at 80 Park Plaza, Newark, New Jersey 07102, is a 50% general partner in National Energy Leasing Partners. 1.3.B.2.(n)(i) National Energy Leasing Partners, a Delaware partnership, with registered offices at One Riverchase Parkway South, Birmingham, Alabama 35244, has entered into lease transactions with respect to certain equipment installed at the Hanford small power-production QF of HLP and five Contra Costa County, California, small power-production QFs of GWFLP. 1.3.B.2.(o) PSEG Mount Carmel Inc., a New Jersey corporation, with principal executive offices at 80 Park Plaza, Newark, New Jersey 07102, is a 49.5% limited partner in PRRA. PSEG Conemaugh Management Inc. owns a 0.5%, general-partnership interest in PRRA, resulting in a 50%, indirect ownership by Global USA. 1.3.B.2.(p) PSEG New Hampshire Inc., a New Hampshire corporation, with principal executive offices at 9 Capital Street, Concord, New Hampshire. PSEG New Hampshire is a co-managing 40% general-partner in Bridgewater Power Company, L.P. 1.3.B.2.(p)(i) Bridgewater Power Company, L.P., a New Hampshire limited partnership, with principal executive offices at Route 3, Bridgewater, New Hampshire 03222, owns a biomass-fired small power-production QF in Bridgewater, New Hampshire. 1.3.B.2.(q) PSEG Project Services Inc., a New Jersey corporation, with principal executive offices at 80 Park Plaza, Newark, New Jersey 07102, provides engineering procurement construction and management services and owns a 50%, general-partnership interest in each of the following two limited partnerships, as described below. 1.3.B.2.(q)(i) National Energy Constructors, a Delaware general partnership, with principal executive offices at One Riverchase Parkway South, Birmingham, Alabama 35244, has constructed five petroleum coke-fired small power-production QFs owned and operated by GWFLP and a petroleum coke-fired small power-production QF owned by HLP. 1.3.B.2.(q)(ii) Tracy Operators, a California general partnership, with principal executive offices at 14800 West Schulte Road, Tracy, California 95376, operates and maintains a biomass-fired small power-production QF in Tracy, California in which PSEG Tracy Inc., has an ownership interest as described below. 1.3.B.2.(r) Deblois Investments, Inc., a New Jersey corporation, with principal executive offices at 80 Park Plaza, Newark, New Jersey 07102, is presently inactive. 15 1.3.B.2.(s) PSEG Tracy Inc., a New Jersey corporation, with principal executive offices at 80 Park Plaza, Newark, New Jersey 07102, is a 34.5% general partner in Thermal Energy Development Partnership, L.P. 1.3.B.2.(s)(i) Thermal Energy Development Partnership, L.P., a Delaware limited partnership, with registered office at 2711 Centerville Road, Suite 400, Wilmington, Delaware 19808. Thermal Energy Development Partnership, L.P. owns a biomass-fired small power-production QF in Tracy, California. 1.3.B.2.(t) PSEG U.S. Services Inc., a Delaware corporation, with registered office at 1209 Orange Street, Wilmington, Delaware 19801, was formed for the purposes of future investments in Texas and is presently inactive. 1.3.B.2.(u) PSEG International Inc., a Delaware corporation, with registered office at 300 Delaware Avenue, Suite 900, Wilmington, Delaware 19801, has the following direct and indirect wholly-owned and partially-owned subsidiaries, as described below. 1.3.B.2.(u)(i) PSEG Americas Services Inc., a Delaware corporation, with registered office at 1209 Orange Street, Wilmington, Delaware 19801, provides management operations and maintenance personnel to some of the international subsidiaries of Global USA. 1.3.B.2.(u)(ii) PSEG Millbank Inc., formerly PSEG Middle East Inc., a Delaware corporation, with registered office at 1209 Orange Street, Wilmington, Delaware 19801, is presently inactive and has the following two direct wholly-owned subsidiaries, as described below. 1.3.B.2.(u)(ii)(A) PSEG Global Power Holdings Ltd., formerly Barka Power Holdings Ltd., a Bermuda limited liability company, with principal offices at Clarendon House, 2 Church Street, Hamilton HMCX HM11, Bermuda, is presently inactive. 1.3.B.2.(u)(ii)(B) PSEG UK Services Limited, a United Kingdom company, with registered office at 100 New Bridge Street, London EC4V 6JA, United Kingdom, was formed for the purpose of providing employment services. 1.3.B.2.(u)(iii) PSEG (Bermuda) Holdings II Ltd., a Bermuda limited liability company, with principal, executive offices at Clarendon House, 2 Church Street, Hamilton, Bermuda, has the following direct subsidiary, as described below. 1.3.B.2.(u)(iii)(A) PSEG Bhilai Energy Company Ltd. (BHILAI), a Mauritius company, with registered office at 608 St. James Court, St. Denis Street, Port Louis, Mauritius is a direct wholly-owned subsidiary of PSEG (Bermuda) Holdings II Ltd. 1.3.B.2.(u)(iv) PSEG Americas Inc., a Delaware corporation, with registered office at 300 Delaware Avenue, Suite 900, Wilmington, Delaware 19801, has the following direct and indirect wholly-owned and partially-owned subsidiaries, and owns a 0.01% interest in PSEG Americas Operating Company (PSEGAOC) as described below. 1.3.B.2.(u)(iv)(A) La Plata I, Inc., a Delaware corporation, with registered office at 2711 Centerville Road, Suite 400, Wilmington, Delaware 19808, is a direct and wholly-owned subsidiary of PSEG Americas Inc. 16 1.3.B.2.(u)(iv)(B) PSEG Texgen Holdings Inc., a Delaware corporation, with registered office at 300 Delaware Avenue, Suite 900, Wilmington, Delaware 19801, was formed for the purpose of future investments in Texas. PSEG Texgen Holdings Inc., is a direct and wholly-owned subsidiary of PSEG Americas Inc. and has the following direct and indirect subsidiaries, as described below. 1.3.B.2.(u)(iv)(B)(i) PSEG Texgen I Inc. (Texgen I), a Delaware corporation, with registered office at 300 Delaware Avenue, Suite 900, Wilmington, Delaware 19801, owns a 0.5% interest in Texas Independent Energy, L.P. (TIELP). 1.3.B.2.(u)(iv)(B)(ii) PSEG Texgen II Inc. (Texgen II), a Delaware corporation, with registered office at 300 Delaware Avenue, Suite 900, Wilmington, Delaware 19801, owns a 49.5% interest in TIELP. 1.3.B.2.(u)(iv)(B)(ii)(a) Texas Independent Energy, L.P. (TIELP), a Delaware limited partnership, with registered office at 1209 Orange Street, Wilmington, Delaware 19801, was formed for the purpose of investing in power-generating facilities in Texas. Texgen I and Texgen II together own 50% of TIELP. TIELP has five direct and three indirect subsidiaries, as described below. 1.3.B.2.(u)(iv)(B)(ii)(a)(i) Guadalupe Power I, LLC, a Delaware limited liability company, with registered office at 1209 Orange Street, Wilmington, Delaware 19801, is a wholly-owned subsidiary of TIELP and owns a 1%, general-partnership interest in Guadalupe Power Partners, LP (GPP), as described below. 1.3.B.2.(u)(iv)(B)(ii)(a)(ii) Guadalupe Power II, LLC, a Delaware limited liability company, with registered office at 1209 Orange Street, Wilmington, Delaware 19801, is a wholly-owned subsidiary of TIELP and owns a 99%, limited-partnership interest in GPP, as described below. 1.3.B.2.(u)(iv)(B)(ii)(a)(ii)(a) Guadalupe Power Partners, LP (GPP), a Delaware limited partnership and an EWG, with registered office at 1209 Orange Street, Wilmington, Delaware 19801, owns a natural gas-fired power-generating facility in Guadalupe County, Texas. 1.3.B.2.(u)(iv)(B)(ii)(a)(iii) Odessa-Ector Power I, LLC, a Delaware limited liability company, with registered office at 1209 Orange Street, Wilmington, Delaware 19801, is a wholly-owned subsidiary of TIELP and owns a 1%, general-partnership interest in Odessa-Ector Power Partners, LP (OEPP) and Odessa-Ector Power Partners Services, L.P. (OEPPS), as described below. 1.3.B.2.(u)(iv)(B)(ii)(a)(iv) Odessa-Ector Power II, LLC, a Delaware limited liability company, with registered office at 1209 Orange Street, Wilmington, Delaware 19801, is a wholly-owned subsidiary of TIELP and owns a 99%, limited-partnership interest in OEPP and OEPPS, as described below. 1.3.B.2.(u)(iv)(B)(ii)(a)(iv)(a) Odessa-Ector Power Partners, L.P. (OEPP), a Delaware limited partnership and an EWG, with registered office at 1209 Orange Street, Wilmington, Delaware 19801, owns a natural gas-fired power-generating facility in Ector County, Texas. 17 1.3.B.2.(u)(iv)(B)(ii)(a)(iv)(b) Odessa-Ector Power Partners Services, L.P. (OEPPS), a Delaware limited partnership, with registered office at 1209 Orange Street, Wilmington, Delaware 19801, was formed for the purpose of holding an interest in a natural-gas transportation pipeline located in Ector County, Texas. 1.3.B.2.(u)(iv)(B)(ii)(a)(v) Texas Independent Energy Operating Company, LLC (TIE), a Delaware limited liability company and an EWG, with registered office at 1209 Orange Street, Wilmington, Delaware 19801, is a wholly-owned subsidiary of TIELP and was formed to operate and maintain the eligible power-generating facility owned by each of GPP and OEPP. 1.3.B.2.(u)(iv)(B)(iii) PSEG Preferred Partner L.L.C., a Delaware limited liability company, with registered office at 1209 Orange Street, Wilmington, Delaware 19801, was formed for the purpose of investing in power-generating facilities in Texas including investments in GPP and OEPP. 1.3.B.2.(u)(iv)(C) PSEG Global Funding II LLC, a Delaware limited liability company, with registered office at 1209 Orange Street, Wilmington, Delaware 19801, directly owns PSEG Global Funding Corp. 1.3.B.2.(u)(iv)(C)(i) PSEG Global Funding Corp., a Delaware corporation, with registered office at 1209 Orange Street, Wilmington, Delaware 19801, wholly owns PSEG Global Funding III Company. In addition, PSEG Global Funding Corp. has an 80% interest in Asociacion o Cuentas en Participacion (CEP), as described below. 1.3.B.2.(u)(iv)(C)(i)(a) PSEG Global Funding III Company, a Cayman Islands company, with registered office at Ugland House, South Church Street, George Town, Grand Cayman, Cayman Islands, British West Indies, has the following interest and subsidiaries. 1.3.B.2.(u)(iv)(C)(i)(a)(i) Asociacion o Cuentas en Participacion (CEP) is a contractual arrangement through which PSEG Global Funding Corp. and PSEG Global Funding III Company have an 80% and a 20% interest, respectively, in the profits and losses of CEP. CEP was formed for the purpose of making investments in South America, and by such contractual arrangement has beneficial ownership in the following two entities. 1.3.B.2.(u)(iv)(C)(i)(a)(i)(a) PSEG Finance Company, a Cayman Islands company, has its registered office at Ugland House, South Church Street, George Town, Grand Cayman, Cayman Islands, British West Indies. PSEG Finance Company is wholly-owned by PSEG Global Funding III Company. 1.3.B.2.(u)(iv)(C)(i)(a)(i)(b) PSEG Peru S.R.L., a Peruvian limited liability company, with registered office at Victor Andres Belaunde 147, Via Principal 155, Edificio Centro Empresarial Camino Real, Oficina 1201, San Isidro, Peru, is 99.97% owned by PSEG Global Funding III Company and 0.03% owned by PSEG Finance Company. 1.3.B.2.(u)(iv)(D) PSEG Global Management Inc., formerly Mendoza Energia, Inc., a Delaware corporation, with registered office at 1209 Orange Street, Wilmington, Delaware 19801, was formed for the purpose of providing energy-related services. 18 1.3.B.2.(u)(iv)(E) Sempra Energy International Chile Holdings I B.V., a Netherlands company, with principal executive offices at Weena 340, Rotterdam, The Netherlands 3012NJ, was formed for the purpose of investing in Latin America. PSEG Americas Inc. own 0.10810% and Sempra Energy owns the remaining interest. 1.3.B.2.(u)(v) PSEG China Holdings Ltd., formerly PSEG Gongyi Power Ltd., a Bermuda limited liability company, with principal offices at Clarendon House, 2 Church Street, Hamilton, Bermuda, is presently inactive. 1.3.B.2.(u)(vi) PSEG Philippine Holdings LLC (PPHLLC), a Delaware limited liability company, with registered office at 1209 Orange Street, Wilmington, Delaware 19801, has one direct 27.67%-owned subsidiary and eighteen indirect partially-owned subsidiaries, as described below. 1.3.B.2.(u)(vi)(A) Magellan Capital Holdings Corporation (MCHC), a Philippine company, with executives offices at 5/F Citibank Center, 8741 Paseo de Roxas, Makati City, 1226 Philippines, was formed for the purpose of investing in power facilities in the Philippines, which are expected to qualify upon completion as EWGs, has the following, direct and indirect, wholly-owned and partially-owned subsidiaries: 1.3.B.2.(u)(vi)(A)(i) Magellan Utilities Development Corporation (MUDC), a Philippines company, with executive offices at 5/F Citibank Center, 8741 Paseo de Roxas, Makati City, 1226 Philippines, was formed for the purpose of investing in a power facility in the Philippines, which is expected upon completion to qualify as an EWG. MUDC is 42% owned by MCHC. 1.3.B.2.(u)(vi)(A)(i)(a) Pinamucan Power Corporation, a Philippines company, with executive offices at 5/F Citibank Center, 8741 Paseo de Roxas, Makati City, 1226 Philippines, is presently inactive. MUDC wholly owns Pinamucan Power Corporation. 1.3.B.2.(u)(vi)(A)(i)(a)(i) Magellan Power Partnership, a Philippines company, with executive offices at 5/F Citibank Center, 8741 Paseo de Roxas, Makati City, 1226 Philippines, is presently inactive. Pinamucan Power Corporation owns 75% of Magellan Power Partnership. MCHC owns 25% of Magellan Power Partnership. 1.3.B.2.(u)(vi)(A)(ii) Batangas Agro-Industrial Development Corporation (BAIDC), a Philippines company, with executive offices at 5/F Citibank Center, 8741 Paseo de Roxas, Makati City, 1226 Philippines, owns certain real property that may be the site of the EWG that MUDC may construct and owns various subsidiaries, which hold title to part of the land intended for the MUDC project. MCHC wholly owns BAIDC. 1.3.B.2.(u)(vi)(A)(ii)(a) Fruits of the East, Inc., a Philippines company, with executive offices at 5/F Citibank Center, 8741 Paseo de Roxas, Makati City, 1226 Philippines, was formed as a real estate holding and development company. BAIDC wholly owns Fruits of the East, Inc. 1.3.B.2.(u)(vi)(A)(ii)(b) King Leader Philippines, Inc., with executive offices at 5/F Citibank Center, 8741 Paseo de Roxas, Makati City, 1226 Philippines, was formed as a holding company. BAIDC wholly owns King Leader Philippines. 1.3.B.2.(u)(vi)(A)(ii)(c) Homotel Integrated Management Corporation, with executive offices at 5/F Citibank Center, 8741 Paseo de Roxas, Makati City, 1226 Philippines, was formed to engage in the business of management services. BAIDC wholly owns Homotel Integrated Management Corporation. 1.3.B.2.(u)(vi)(A)(ii)(d) Samar Commodities Trading, Inc., with executive offices at 5/F Citibank Center, 8741 Paseo de Roxas, Makati City, 1226 Philippines, is wholly owned by BAIDC. 1.3.B.2.(u)(vi)(A)(ii)(e) Tropical Aqua Resources, Inc., with executive offices at 5/F Citibank Center, 8741 Paseo de Roxas, Makati City, 1226 Philippines, was formed to engage in aquatic, marine and agricultural trading. BAIDC wholly owns Tropical Aqua Resources, Inc. 1.3.B.2.(u)(vi)(A)(ii)(f) United Philippine Oil Trading, Inc., with executive offices at 5/F Citibank Center, 8741 Paseo de Roxas, Makati City, 1226 Philippines, was formed to engage in commodities trading. BAIDC wholly owns United Philippine Oil Trading, Inc. 1.3.B.2.(u)(vi)(A)(iii) Pinamucan Industrial Estates, Inc., a Philippines company, with executive offices at 5/F Citibank Center, 8741 Paseo de Roxas, Makati City, 1226 Philippines, owns a portfolio of bond and money market investments. Pinamucan Industrial Estates, Inc. was formed as a real estate holding and development company. MCHC owns 99.9% of Pinamucan Industrial Estates, Inc. 1.3.B.2.(u)(vi)(A)(iv) F & J Prince Holdings Corporation, a Philippines company, with executive offices at 5/F Citibank Center, 8741 Paseo de Roxas, Makati City, 1226 Philippines, is 9.85% owned by MCHC. 1.3.B.2.(u)(vi)(A)(iv)(a) Magellan Capital Holdings Corporation (MCHC I), a Philippines company, with executive offices at 5/F Citibank Center, 8741 Paseo de Roxas, Makati City, 1226 Philippines, is 66.67% owned by F & J Prince Holdings Corporation. 1.3.B.2.(u)(vi)(A)(iv)(b) Pointwest Technologies Corporation, a Philippines company, with executive offices at 5/F Citibank Center, 8741 Paseo de Roxas, Makati City, 1226 Philippines, was formed to engage in the business of developing, designing and marketing information technology systems. F & J Prince Holdings Corporation owns 30% of Pointwest Technologies Corporation. 1.3.B.2.(u)(vi)(A)(v) Malabrigo Corporation, a Philippines company, with executive offices at 5/F Citibank Center, 8741 Paseo de Roxas, Makati City, 1226 Philippines, was formed for the purpose of operating coal mines and holding mineral and water rights. MCHC wholly owns Malabrigo Corporation. 1.3.B.2.(u)(vi)(A)(vi)) Magellan Capital Corporation, a Philippines company, with executive offices at 5/F Citibank Center, 8741 Paseo de Roxas, Makati City, 1226 Philippines, is presently inactive. MCHC wholly owns Magellan Capital Partnership. 1.3.B.2.(u)(vi)(A)(vii) Magellan Capital Realty Development Corporation, a Philippines company, with offices at 5/F Citibank Center, 8741 Paseo de Roxas, Makati City, 1226 Philippines, is presently inactive. MCHC wholly owns Magellan Capital Realty Development Corporation. 1.3.B.2.(u)(vi)(A)(viii*) Magellan Capital Trading Corporation, a Philippines company, with offices at 5/F Citibank Center, 8741 Paseo de Roxas, Makati City, 1226 Philippines, is presently inactive. MCHC wholly owns Magellan Trading Capital Corporation. 1.3.B.2.(u)(vii) PSEG Pontianak (L) Ltd., a Malaysian company, with offices at Level 10, Wisma Oceanic, Jalan O.K.K. Awang Besar, 87007 Labuan F.T., Malaysia, has one direct 93.75%-owned subsidiary, as described below. 1.3.B.2.(u)(viii)(A) PT Pontianak Power, an Indonesian company, with principal executive offices at JI. Dr. Saharjo 52 Jakarta, 12970 Indonesia, is presently inactive. 1.3.B.2.(u)(viii) PSEG Zhou Kou Power Ltd., a Bermuda limited liability company, with principal, executive offices at Clarendon House, 2 Church Street, Hamilton, Bermuda, is presently inactive. 19 1.3.B.2.(u)(ix) PSEG Rades Services Inc., formerly Empresa Argentina Electrica I, Inc., a Delaware corporation, with registered office at 1209 Orange Street, Wilmington, Delaware 19801, was formed for the purpose of providing management services for projects in Tunisia. 1.3.B.2.(u)(x)PSEG Elcho Services Inc., formerly Empresa Argentina Electrica II, Inc., a Delaware corporation, with registered office at 1209 Orange Street, Wilmington, Delaware 19801, was formed for the purpose of providing management services for projects in Chorzow, Poland. 1.3.B.2.(u)(xi) PSEG Europe Ltd., formerly PSEG Global Ltd., a United Kingdom company, with registered office at 100 New Bridge Street, EC4V 6JA, United Kingdom, was formed for the purpose of managing development activities in Europe and the Middle East. PSEG Europe Ltd. has the following, wholly-owned subsidiaries. 1.3.B.2.(u)(xi)(A) PSEG Technical Services Ltd., a United Kingdom company, with registered office at 100 New Bridge Street, EC4V 6JA, United Kingdom, was formed for the purpose of providing technical services to power facilities in Poland. PSEG Technical Services Ltd. is inactive. 1.3.B.2.(u)(xi)(B) PSEG Offshore Operations Ltd., formerly PSEG Operations Ltd., a United Kingdom company, with registered office at 100 New Bridge Street, EC4V 6JA, United Kingdom, was formed for the purpose of providing construction management operation and maintenance services offshore to Carthage Power Company Sarl (CPC) and is presently inactive. 1.3.B.2.(u)(xi)(C) PSEG Operations Tunisia Ltd., a United Kingdom company, with registered office at 100 New Bridge Street, EC4V 6JA, United Kingdom, was formed for the purpose of providing construction management operation and maintenance services offshore to CPC. PSEG Operations Tunisia Ltd. is presently inactive. 1.3.B.2.(u)(xii) PSEG Operaciones I Company, formerly PSEG Electrica and Turbogeneradores de Cagua Company, a Cayman Islands company, with registered office at Ugland House, P.O. Box 309, George Town, Grand Cayman, Cayman Islands, British West Indies, was formed for the purpose of making investments in South America. 1.3.B.2.(u)(xiii) PSEG Operaciones II Company, formerly Peru Power, Ltd., a Cayman Islands company, with registered office at Ugland House, P.O. Box 309, George Town, Grand Cayman, Cayman Islands, British West Indies, was formed for the purpose of making investments in South America. 1.3.B.2.(u)(xiii)(A) Asociacion o Cuentas en Participacion (CEPII) is a contractual arrangement through which PSEG Operaciones II Company has an 80% interest, and PSEG Operaciones I Company has a 20% interest, in the profits and losses of CEPII. CEPII was formed for the purpose of making investments in South America, and by such contractual arrangement has beneficial ownership in the following two entities. 1.3.B.2.(u)(xiii)(A)(i) PSEG Cuenta Finance Company, formerly Andina Mendoza I Company, a Cayman Islands company, with registered office at Ugland House, P.O. Box 309, George Town, Grand Cayman, Cayman Islands, British West Indies, was formed for the purpose of making investments in South America. 20 1.3.B.2.(u)(xiii)(A)(ii) PSEG Genaracion y Energia Chile Limitada, a Chilean limited liability company, was formed for the purpose of making investments in Latin America. PSEG Genaracion y Energia Chile Limitada owns an electric-generating station in Chile. 1.3.B.2.(u)(xiv) North Bay Power LLC, a Delaware limited liability company, with registered office at 1209 Orange Street, Wilmington, Delaware 19801, was formed for the purpose of investing in North America. 1.3.B.2.(u)(xv) PSEG Henrietta Turbine Inc., formerly PSEG Mexico Inc., a Delaware corporation, with registered office at 1209 Orange Street, Wilmington, Delaware 19801, is presently inactive. 1.3.B.2.(u)(xvi) PSEG California Corp., a Delaware corporation, with registered office at 1209 Orange Street, Wilmington, Delaware 19801, was formed for the purpose of investing in North America. PSEG California Corp. has the following 50%-owned subsidiary, as described below. 1.3.B.2.(u)(xvi)(A) GWF Energy LLC, a Delaware limited liability company and an EWG, with registered office at 1209 Orange Street, Wilmington, Delaware 19801, was formed for the purpose of investing in three natural gas-fired peaker facilities in California. 1.3.B.2.(u)(xvii) PSEG California II Corp., formerly Andina Electrica, Inc., a Delaware corporation, with registered office at 1209 Orange Street, Wilmington, Delaware 19801, was formed for the purpose of investing in North America. PSEG California II Corp. owns a 12.43532% interest in GWF Energy LLC. 1.3.B.2.(u)(xviii) PSEG California III Corp., formerly Andina Mendoza Corporation, a Delaware corporation, with registered office at 1209 Orange Street, Wilmington, Delaware 19801, was formed for the purpose of investing in North America. PSEG California III Corp. owns a 12.43532% interest in GWF Energy LLC. 1.3.B.2.(u)(xix) PSEG Tracy Turbine Inc., formerly PSEG Peru Inc., a Delaware corporation, with registered office at 1209 Orange Street, Wilmington, Delaware 19801, is presently inactive. 1.3.B.2.(v) PSEG Chilquinta Finance LLC, a Delaware limited liability company, with registered office at 1209 Orange Street, Wilmington, Delaware 19801, is a holding company which has the following, 50%-owned subsidiary. 1.3.B.2.(v)(i) Chilquinta Energia Finance Co. LLC, a Delaware limited liability company, with registered office at 1209 Orange Street, Wilmington, Delaware, 19801, was formed for the purpose of operating and investing in various projects in Latin America. 1.3.B.2.(w) PSEG Polska Sp. z o.o., a Polish company, with registered office at ul. Emilii Plater #53, Warsaw, Poland 00-113, was formed for the purpose of managing investments in Poland. 1.3.B.3. PSEG Global USA L.L.C., a New Jersey limited liability company, with registered office at 80 Park Plaza, Newark, New Jersey 07102, is presently inactive. 21 1.3.B.4. PSEG Global International Holdings LLC (PGIHLLC), a Delaware limited liability company, with registered office at 1209 Orange Street, Wilmington, Delaware 19801, was formed for the purpose of serving as a holding company for various international investments. PGIHLLC is wholly-owned by Global. 1.3.B.4.(a) PSEG Americas Ltd., a Bermuda limited liability company, with principal executive offices at Clarendon House, 2 Church Street, Hamilton, Bermuda, owns a 90% interest in PSEGAOC. PSEG Americas Ltd. has the following direct and indirect wholly-owned and partially-owned subsidiaries: 1.3.B.4.(a)(i) Andina Mendoza Company, a Cayman Islands company, with registered office at Ugland House, South Church Street, George Town, Grand Cayman, Cayman Islands, British West Indies, was formed for the purpose of investing internationally. 1.3.B.4.(a)(ii) Inversiones PSEG Americas Chile Holding Limitada (Inversiones Chile), a Chilean limited liability company, with registered office at Miraflores 222, Piso 24, Santiago, Chile, was formed for the purpose of investing in Saesa and Empresa Electrica de la Frontera S.A. (Frontel). Inversiones Chile is 88.5013% owned by PSEG Americas Ltd., 11.492% owned by PSEG Finance Company, and 0.0067% owned by PSEG Chilean Equity II Ltd (Chilean Equity II). 1.3.B.4.(a)(ii)(A) Empresa Electrica de la Frontera S.A. (Frontel), a Chilean company and a FUCO, with registered office at Isidora Goyenechea No. 3621, Piso 20, Las Condes, Santiago, Chile, was formed for the purpose of investing in Latin America and owns electric distribution facilities in Chile. Frontel is 95.889% owned by Inversiones Chile and 0.006% owned by Chilean Equity II. Frontel owns a 0.1% direct interest in each of Compania Electrica Osorno S.A. (Creo) and Sistema de Transmision del Sur S.A. (STS), as described below. 1.3.B.4.(a)(ii)(B) Sociedad Austral de Electricidad S.A. (SAESA), a Chilean sociedad anonima and a FUCO, with registered office at Isidora Goyenechea No. 3621, Piso 20, Las Condes, Santiago, Chile, was formed for the purpose of investing in Latin America and owns electric distribution facilities in Chile. SAESA is 99.922% owned by Inversiones Chile and 0.0056% owned by Chilean Equity II. SAESA has the following direct and indirect partially-owned subsidiaries: 1.3.B.4.(a)(ii)(B)(i) Empresa de Energia Rio Negro S.A. (Edersa), an Argentine sociedad anonima and a FUCO, with registered office at Mengelle 145 Cipolletti, Rio Negro Province, Argentina, was formed for the purpose of investing in Latin America and owns electric distribution facilities in Chile. Edersa is 50% owned by SAESA. 1.3.B.4.(a)(ii)(B)(ii) Compania Electrica Osorno S.A. (Creo), a Chilean sociedad anonima and a FUCO, with registered office at Manuel Bulnes 441, Osorno, Chile, was formed for the purpose of investing in Latin America and owns electric distribution facilities in Chile. Creo is 0.1% owned by Frontel and 99.9% owned by SAESA. 22 1.3.B.4.(a)(ii)(B)(iii) Sistema de Transmision del Sur S.A. (STS), a Chilean sociedad anonima and a FUCO, with registered office at Isidora Goyenechea No. 3621, Piso 20, Las Condes, Santiago, Chile, was formed for the purpose of investing in Latin America and owns electric transmission facilities in Chile. STS is 0.1% owned by Frontel and 99.9% owned by SAESA. STS has one, 8.33%-owned subsidiary, as described below. 1.3.B.4.(a)(ii)(B)(iii)(a) Centro de Despacho Economico de Carga del Sistema Electrico Interconectado Central CDEC-SOC Limitada, a Chilean limited liability company, with registered office in Chile, was formed for the purpose of investing in Latin America and owns electric distribution facilities in Chile. STS owns 8.33% of CDEC-SO. 1.3.B.4.(a)(ii)(B)(iv) Empresa Electrica de Aisen S.A. (Edelaysen), a Chilean sociedad anonima and a FUCO, with registered office at Isidora Goyenechea No. 3621, Piso 20, Las Condes, Santiago, Chile, was formed for the purpose of investing in Latin America and owns electric distribution facilities in Chile. Edelaysen is 91.66% owned by SAESA. 1.3.B.4.(a)(iii) PSEG Americas Operating Company (PSEGAOC), a Cayman Island company, with registered office at Ugland House, South Church Street, George Town, Grand Cayman, Cayman Islands, British West Indies, is a 90%, directly-owned subsidiary of PSEG Americas Ltd. PSEG Americas Inc. holds an additional 0.01% interest in this company. 1.3.B.4.(a)(iv) PSEG Brasil Ltda., a Brazilian limited liability company, with registered office at Avenida das Nacoes Unidas, 12.995, 10 andar, salas 10, Edificio Plaza Centenario, Chacara Itaim, Sao Paulo, Sao Paulo, CEP 04578-000, Brazil, provides management and business-development services. PSEG Americas Ltd. directly owns 99.99% of PSEG Brasil Ltda. Ipe Energia S.A. (IPE), as described below, directly owns the remaining 0.01%. 1.3.B.4.(a)(v) PSEG Brazil II Company, a Cayman Islands company, with registered office at Ugland House, South Church Street, George Town, Grand Cayman, Cayman Islands, British West Indies, has one 50%-owned subsidiary. 1.3.B.4.(a)(v)(A) PSEG Trader S.A., formerly Terra Roxa Participacoes S.A., a Brazilian company, with registered office at Avenida das Nacoes Unidas, 12.995, 10 andar, conjunto 101, sala 13, Edificio Plaza Centenario, Chacara Itaim, Sao Paulo, Sao Paulo, CEP 04578-000, Brazil, is presently inactive. PSEG Brazil III Company owns the remaining 50% interest in PSEG Trader S.A. 1.3.B.4.(a)(vi) PSEG Brazil III Company, a Cayman Islands company, with registered office at Ugland House, South Church Street, George Town, Grand Cayman, Cayman Islands, British West Indies, has one, 50%-owned subsidiary, PSEG Trader S.A., which is also 50% owned by PSEG Brazil II Company. 1.3.B.4.(a)(vii) PSEG Brazil Investment Company, a Cayman Islands company, with registered office at Ugland House, South Church Street, George Town, Grand Cayman, Cayman Islands, British West Indies, was formed for the purpose of indirectly acquiring privatized assets in Brazil. PSEG Brazil Investment Company has the following direct and indirect wholly-owned and partially-owned subsidiaries, as described below. 1.3.B.4.(a)(vii)(A) Pampa Energia Ltda., a Cayman Islands company, with registered office at Ugland House, South Church Street, George Town, Grand Cayman, Cayman Islands, British West Indies, was formed for the purpose of indirectly acquiring privatized assets in Brazil. Pampa Energia Ltda. has the following direct and indirect wholly-owned and partially-owned subsidiaries, as described below. 23 1.3.B.4.(a)(vii)(A)(i) PSEG Brazil Company, a Cayman Islands company, with registered office at Ugland House, South Church Street, George Town, Grand Cayman, Cayman Islands, British West Indies, was formed for the purpose of indirectly acquiring an interest in Rio Grande Energia S.A. (RGE), as described below. PSEG Brazil Company presently owns a 50% interest in PSEG Participacoes S.A. and in IPE. PSEG Brazil I Company owns the remaining 50% interest in PSEG Participacoes S.A. and in IPE. 1.3.B.4.(a)(vii)(A)(i)(a) PSEG Participacoes S.A., a Brazilian sociedade anonima, with registered office at Av. das Nacoes Unidas, 12.995, 10 andar, conjunto 101, sala 14, Edificio Plaza Centenario Building, Chacara Itaim, Sao Paulo, Sao Paulo, CEP 04578-000, Brazil, is presently inactive. 1.3.B.4.(a)(vii)(A)(i)(b) Ipe Energia Ltda. (IPE), a Brazilian company, with registered office at Avenida das Nacoes Unidas, 12.995, 10 andar, sala 11, Edificio Plaza Centenario, Chacara Itaim, Sao Paulo, CEP 04578-000, Brazil, owns a 32.46% interest in RGE. IPE also owns 0.01% of PSEG Brasil Ltda. 1.3.B.4.(a)(vii)(A)(i)(b)(i) Rio Grande Energia S.A. (RGE), formerly Companhia Norte e Nordeste de Distribuicao de Energia Eletrica, a Brazilian sociedade anonima and a FUCO, with registered office at Rua Sao Luiz, 77, 7 andar, Porto Alegre, Rio Grande do Sul, Brazil, is a Brazilian electric-distribution company located in the State of Rio Grande do Sul. IPE owns 32.46% of RGE. RGE has the following, wholly-owned subsidiary. 1.3.B.4.(a)(vii)(A)(i)(b)(i)(a) Sul Geradora Participacoes S.A., a Brazilian sociedade anonima, with registered office at Av. Eng. Luiz Carlos Berrini, 1297-13 anadar parte, CEP 04571-010, Sao Paulo, Sao Paulo, Brazil, was formed for the purpose of participation in importation, exportation and commerce of agricultural products. 1.3.B.4.(a)(vii)(A)(ii) PSEG Brazil I Company, a Cayman Islands company, with registered office at Ugland House, South Church Street, George Town, Grand Cayman, Cayman Islands, British West Indies, was formed for the purpose of acquiring an indirect ownership interest in RGE and presently owns a 50% interest in PSEG Participacoes S.A. and in IPE. PSEG Brazil Company owns the remaining 50% interest in PSEG Participacoes S.A. and in IPE. PSEG Brazil I Company also owns a 99.9405% interest in Conversora de Fertilizante e Energia do Parana Ltda., a Brazilian limited liability company, and PSEG Brazil Company holds the remaining 0.0595% ownership interest. 1.3.B.4.(a)(vii)(A)(ii)(a) Conversora de Fertilizante e Energia do Parana Ltda., formerly PSEG Brasil Operacoes Ltda., with registered office at Avenida das Nacoes Unidas, 12.995, 10 andar, Conjunto 101, sala 12, Edificio Plaza Centenario, Chacara Itaim, Sao Paulo, Sao Paulo, CEP 04578-000, Brazil. PSEG Brazil I Company presently owns approximately a direct 99.95% interest in Conversora de Fertilizante e Energia do Parana Ltda., PSEG Brazil Company directly owns the remaining approximately 0.05%. 24 1.3.B.4.(a)(viii) PSEG Brazil Operating Company, a Cayman Islands company, with registered office at Ugland House, South Church Street, George Town, Grand Cayman, Cayman Islands, British West Indies, was formed for the purpose of providing operating and maintenance services to RGE. 1.3.B.4.(a)(ix) PSEG (Bermuda) Holdings III Ltd., a Bermuda limited liability company, with principal, executive offices at Clarendon House, 2 Church Street, Hamilton, Bermuda, was formed for the purpose of investing in India. PSEG (Bermuda) Holdings III Ltd. has one direct wholly-owned subsidiary and several indirect subsidiaries, as described below. 1.3.B.4.(a)(ix)(A) PSEG India Ltd., a Mauritius company, with registered office at 608 St. James Court, St. Denis Street, Port Louis, Mauritius, has the following direct wholly-owned and indirect partially-owned subsidiaries, as described below. 1.3.B.4.(a)(ix)(A)(i) PSEG Ambalamugal Energy Company Ltd., a Mauritius company, with registered office at 608 St. James Court, St. Denis Street, Port Louis, Mauritius, was formed for the purpose of investing in power facilities in India. PSEG Ambalamugal Energy Company Ltd. owns one share of PSEG PPN Operations Private Ltd. (PPN Operations), as described below. 1.3.B.4.(a)(ix)(A)(ii) PSEG North Chennai Ltd., formerly PSEG North Madras Ltd., a Mauritius company, with registered office at 608 St. James Court, St. Denis Street, Port Louis, Mauritius, was formed for the purpose of investing in power facilities in India. PSEG North Chennai Ltd. has a 26% interest in Tri-Sakthi Investments Limited (TSIL) and a 50% interest in Tri-Sakthi Energy Private Limited (TSEPL). 1.3.B.4.(a)(ix)(A)(ii)(a) Tri-Sakthi Investments Limited (TSIL), a Mauritius company, with registered office at 3rd Floor, TM Building, Pope Hennesy Street, Port Louis, Mauritius, has a 50% interest in TSEPL. 1.3.B.4.(a)(ix)(A)(iii)(a)(i) Tri-Sakthi Energy Private Limited (TSEPL), an Indian company, with registered office at No. 7 "Mamatha Complex", II Floor, 13 Whites Road, Chennai, India 600014, was formed for future investments in India. TSEPL has had one project only, i.e., the 525 MW North Chennai Phase III thermal power project at Ennore. The Madras High Court has admitted a winding-up petition filed against TSEPL by PSEG North Chennai Ltd. 1.3.B.4.(a)(x) PSEG Cayman Americas Company, a Cayman Islands company, with registered office at Ugland House, South Church Street, George Town, Grand Cayman, Cayman Islands, British West Indies, has the following subsidiaries: 1.3.B.4.(a)(x)(A) PSEG Cayman Americas V Company, a Cayman Islands company, with registered office at Ugland House, South Church Street, George Town, Grand Cayman, Cayman Islands, British West Indies, is presently inactive. 1.3.B.4.(a)(x)(B) PSEG Inversora S.A., an Argentine sociedad anonima, with registered office at Marcelo T. de Alvear 684, Piso 2, Buenos Aires, Argentina, is presently inactive. PSEG Cayman Americas Company owns 99.99% of PSEG Inversora S.A. PSEG Americas Ltd. owns the remaining 0.01%. 25 1.3.B.4.(a)(xi) PSEG Global Funding II Corp., a Delaware corporation, with registered office at 1209 Orange Street, Wilmington, Delaware 19801, was formed for future investments in South America. 1.3.B.4.(a)(xii) PSEG Luxembourg S.a.r.l., a Luxembourg company, with registered office at 4 Rue Carlo Hemmer, Luxembourg, was formed as a holding company for entities in various jurisdictions. 1.3.B.4.(a)(xiii) Transamerica Energy Company, a Cayman Islands company, with registered office at Ugland House, South Church Street, George Town, Grand Cayman, Cayman Islands, British West Indies, was formed for the purpose of making a future investment in Latin America. Transamerica Energy Company has an 80% interest in Asociacion en Participacion (AenPII), as described below. 1.3.B.4.(a)(xiii)(A) Asociacion en Participacion (AenPII) is a contractual arrangement through which Transamerica Energy Company has an 80% interest, and PSEG Americas Ltd. has a 20% interest, in the profits and losses of AenPII. AenPII was formed for the purpose of making investments in South America, and by such contractual arrangement has beneficial ownership in the following two entities: 1.3.B.4.(a)(xiii)(A)(i) Electroandes S.A., a Peruvian sociedad anonima and a FUCO, with registered address at Avenida Canaval y Moreyra 380, Torre Siglo XXI, Piso 16, San Isidro, Lima 27, Peru, was formed for the purpose of investing in Latin America and owns a hydro-powered electric generation station. 1.3.B.4.(a)(xiii)(A)(ii) PSEG Peru Company, a Cayman Islands company, with registered office at Ugland House, South Church Street, George Town, Grand Cayman, Cayman Islands, British West Indies, is presently inactive. 1.3.B.4.(a)(xiv) Venergy Holdings Company, formerly Turbogeneradores de Maracay Company, a Cayman Islands company, with registered office at Ugland House, South Church Street, George Town, Grand Cayman, Cayman Islands, British West Indies, has the following direct and indirect partially-owned and wholly-owned subsidiaries, as described below: 1.3.B.4.(a)(xiv)(A) Turboven Company Inc., a Cayman Islands company, with registered office at c/o Trident Trust Company (Cayman) Limited, Fourth Floor, One Capital Place, P. O. Box 847, Grand Cayman, Cayman Islands, British West Indies, is a 50%-owned, direct subsidiary of Venergy Holdings Company. Turboven Company Inc. has the following direct wholly-owned subsidiaries: 1.3.B.4.(a)(xiv)(A)(i) Turboven Cagua Company Inc. (CAGUA), a Cayman Islands company and a FUCO, with registered office at c/o Trident Trust Company (Cayman) Limited, Fourth Floor, One Capital Place, P. O. Box 847, Grand Cayman, Cayman Islands, British West Indies, was formed for the purpose of making investment in Latin America. 1.3.B.4.(a)(xiv)(A)(ii) Turboven Maracay Company Inc. (MARACAY), a Cayman Islands company and a FUCO, with registered office at c/o Trident Trust Company (Cayman) Limited, Fourth Floor, One Capital Place, P. O. Box 847, Grand Cayman, Cayman Islands, British West Indies, was formed for the purpose of making investments in Latin America. 26 1.3.B.4.(a)(xiv)(A)(iii) Turboven Valencia Company Inc (VALENCIA)., a Cayman Islands company, with registered office at c/o Trident Trust Company (Cayman) Limited, Fourth Floor, One Capital Place, P. O. Box 847, Grand Cayman, Cayman Islands, British West Indies, was formed for the purpose of making investments in Latin America. VALENCIA is a FUCO. 1.3.B.4.(a)(xiv)(A)(iv) Turboven La Victoria Company Inc., a Cayman Islands company with registered office at c/o Trident Trust Company (Cayman) Limited, Fourth Floor, One Capital Place, P. O. Box 847, Grand Cayman, Cayman Islands, British West Indies, was formed for the purpose of making investments in Latin America. 1.3.B.4.(a)(xv) Rayo-Andino Gestora Company, formerly Turbogeneradores de Valencia Company, a Cayman Islands company, with registered office at Ugland House, South Church Street, George Town, Grand Cayman, Cayman Islands, British West Indies, has one direct 0.03%-owned subsidiary, as described below. 1.3.B.4.(a)(xv)(A) Promotora Termica del Cafe S.C.A., a Colombian company, with registered office at Carrera 11 No. 86-60, Oficina 301 de Santafe de Bogota, Colombia is presently inactive. 1.3.B.4.(a)(xvi) Rayo-Andino Inversora Company, a Cayman Islands company, with registered office at Ugland House, South Church Street, George Town, Grand Cayman, Cayman Islands, British West Indies, has a direct 92.83% interest in Promotora Termica del Cafe S.C.A., with an additional 0.03% interest owned by Rayo-Andino Gestora Company, Rayo-Andino Inversora Company has a 100% interest in PSEG International Holding Company, as described below. 1.3.B.4.(a)(xvi)(A) PSEG International Holding Company, a Cayman Island company, with registered office at Ugland House, South Church Street, George Town, Grand Cayman, Cayman Islands, British West Indies, has the following direct and indirect subsidiaries, as described below. 1.3.B.4.(a)(xvi)(A)(i) PSEG International Holding II Company, a Cayman Island company, with registered office at Ugland House, South Church Street, George Town, Grand Cayman, Cayman Islands, British West Indies, wholly owns PSEG International Ltd. and indirectly partially owns CPC, as described below. 1.3.B.4.(a)(xvi)(A)(i)(a) PSEG International Ltd., a Bermuda limited liability company and an EWG, with principal executive offices at Clarendon House, 2 Church Street, Hamilton, Bermuda HM11, has a 60% interest in CPC, as described below. 1.3.B.4.(a)(xvi)(A)(i)(a)(i) Carthage Power Company Sarl (CPC), a Tunisian company, with registered offices at Immeuble al Badr 1, Rue 102, Les Berges du Lac, Tunis 2045, Tunisia, was formed for the purpose of developing, constructing, owning and operating a 471 MW combined-cycle, power-generation facility in Rades, Tunisia. 1.3.B.4.(a)(xvi)(A)(ii) PSEG Holdings Pte Ltd., a Singapore company, with principal executive offices at 95 South Bridge Road, #09-00 Pidemco Centre, Singapore 058717, was formed for the purpose of investing in power facilities in Israel. 27 1.3.B.4.(a)(xvii) PSEG Chilean Equity II Ltd. (Chilean Equity II), a Cayman Islands company, with registered office at Ugland House, South Church Street, George Town, Grand Cayman, Cayman Islands, British West Indies, is a direct wholly-owned subsidiary of PSEG Americas Ltd. and has the following direct and indirect subsidiaries, as described below. 1.3.B.4.(a)(xvii)(A) PSEG Chilean Equity Ltd. (Chilean Equity), a Cayman Islands company, with registered office at Ugland House, South Church Street, George Town, Grand Cayman, Cayman Islands, British West Indies, was formed for the purpose of making investments in Chile and Peru. Chilean Equity II owns 99.9% of Chilean Equity. 1.3.B.4.(a)(xvii)(A)(i) PSEG Venezuela S.R.L., a Venezuelan limited liability company, with registered office at Edificio ABA, Calle Veracruz, Las Mercedes, Caracas, 1060, Venezuela, owned 99.95% by Chilean Equity and 0.05% by PSEG Chilean Equity III Ltd., was formed for the purpose of making investments in South America. 1.3.B.4.(a)(xvii)(A)(ii) PSEG Chilean Equity III Ltd., a Cayman Islands company, with registered office at Ugland House, South Church Street, George Town, Grand Cayman, Cayman Islands, British West Indies, was formed for the purpose of making investments in Chile. 1.3.B.4.(a)(xvii)(A)(iii) Asociacion en Participacion (AenP) is a contractual arrangement through which Chilean Equity has a 24% interest, and PSEG Americas Ltd. has a 76% interest, in the profits and losses of AenP. AenP was formed for the purpose of making investments in South America, and by such contractual arrangement has beneficial ownership in the following entities. 1.3.B.4.(a)(xvii)(A)(iii)(a) Chilquinta Energia S.A. (CHILQUINTA), a Chilean sociedad anonima and a FUCO, with principal, executive offices at General Cruz No. 222, Valparaiso, Chile, owns electric distribution facilities. AenP has a 49.9925% beneficial ownership interest in CHILQUINTA. 1.3.B.4.(a)(xvii)(A)(iii)(a)(i) I.T.O. International Technical Operators A.V.V., formerly Chilquinta International A.V.V., a Peruvian company, with registered office at P.O. Box 1311, Zoutmanstraat 35, Oranjestad, Aruba, was formed for the purpose of making investments in Peru. CHILQUINTA wholly owns I.T.O. International Technical Operators A.V.V. 1.3.B.4.(a)(xvii)(A)(iii)(a)(ii) Energas S.A., a Chilean sociedad anonima, with principal place of business at General Cruz No. 222, Valparaiso, Chile, was formed for the purposes of acquiring, producing, storing, distributing and selling gas and related business in the Fifth Region of Chile. CHILQUINTA directly owns a 99.99% interest in Energas S.A. Compania Electrica del Litoral S.A. (Compania Electrica) owns the remaining 0.01%. 1.3.B.4.(a)(xvii)(A)(iii)(a)(iii) Energia de Casablanca S.A., a Chilean sociedad anonima, with principal place of business at Portales 187, Casablanca, Chile, was formed for the purposes of distributing, generating, acquiring and selling electric or other kinds of energy and related business. CHILQUINTA directly owns a 69.62% interest in Energia de Casablanca S.A. 28 1.3.B.4.(a)(xvii)(A)(iii)(a)(iv) Compania Electrica del Litoral S.A. (Compania Electrica), a Chilean sociedad anonima, with principal place of business at Alameda 949, Of. 2002, Santiago, Chile, was formed for the purpose of producing, acquiring, transporting, distributing and selling electric energy and related business. CHILQUINTA directly owns a 75.61% interest in Compania Electrica. 1.3.B.4.(a)(xvii)(A)(iii)(a)(iv)(a) Inmobiliaria del Litoral S.A., a Chilean sociedad anonima, with principal place of business at Alameda 949, Of. 2002, Santiago, Chile, was formed for the purposes of producing, acquiring, transporting, distributing and selling electric energy and related business. Compania Electrica directly owns an 80% interest in Inmobiliaria del Litoral S.A. Generadora Electrica Sauce Los Andes S. A. holds the remaining 20% interest. 1.3.B.4.(a)(xvii)(A)(iii)(a)(iv)(b) Generadora Electrica Sauce Los Andes S. A., a Chilean sociedad anonima, with principal place of business at Alameda 949, Of. 2002, Santiago, Chile, was formed for the purposes of producing, acquiring, transporting, distributing and selling electric energy and related business. Compania Electrica directly owns a 99.5% interest in Generadora Electrica Sauce Los Andes S.A. and CHILQUINTA holds the remaining 0.5% interest. 1.3.B.4.(a)(xvii)(A)(iii)(a)(v) Luzlinares S. A., a Chilean sociedad anonima, with principal place of business at Max Jara 478, Linares, Chile, was formed for the purpose of distributing, generating, acquiring and selling electric or other kinds of energy and related business. CHILQUINTA directly owns an 85% interest in Luzlinares S.A. 1.3.B.4.(a)(xvii)(A)(iii)(a)(vi) Distribuidora Parral S.A., a Chilean sociedad anonima, with principal place of business at Max Jara 478, Linares, Chile, was formed for the purposes of distributing, generating, acquiring and selling electric or other kinds of energy and related business. CHILQUINTA directly owns a 51% interest in Distribuidora Parral S.A. 1.3.B.4.(a)(xvii)(A)(iii)(b) Inversiones PSEG Chile Holdco Limitada, a Chilean sociedad de responsabilidad limitada, with registered office at, Miraflores 222, Piso 24, Santiago, Chile, was formed for the purpose of holding investments in Chile and has the following direct partially-owned subsidiary, as described below. 1.3.B.4.(a)(xvii)(A)(iii)(b)(i) Tecnored Limitada(Tecnored), a Chilean limited liability company, with principal executive offices at Av. Apoquindo 3721, Piso 13, Santiago, Chile, was formed for the purpose of providing services to CHILQUINTA, and is 50% owned by Inversiones PSEG Chile Holdco Limitada. 1.3.B.4.(a)(xvii)(A)(iii)(c) Peruvian Opportunity Company S.A.C. (POC) is a Peruvian company, has its registered office at Victor Andres Belaunde 147, Edificio Real 3, Piso 12, San Isidro, Lima 27, Peru. AenP has a 50% beneficial ownership interest in POC. POC has direct and indirect, wholly-owned and partially-owned subsidiaries, as described below. 1.3.B.4.(a)(xvii)(A)(iii)(c)(i) Ontario Quinta S.R.L. (Ontario), a Peruvian corporation, with registered office of Av. Canaval y Moreyra N DEG. 380 Piso 16, San Isidro Lima 27, Peru, was formed for the purpose of making investments in Peru. POC owns more than 99%, and Chilean Equity owns less than 1%, of Ontario. 29 1.3.B.4.(a)(xvii)(A)(iii)(c)(i)(a) Luz del Sur S.A.A. (LUZ), a Peruvian sociedad anonima and a FUCO, with principal executive offices at Canaval y Moreyra 380, Piso 16, San Isidro, Lima 27, Peru, is an electric-distribution company serving southern Lima, Peru. LUZ is 61.16% owned by Ontario, 22.89% owned by POC and 3.83% owned by Energy Business International A.V.V. (EBI). 1.3.B.4.(a)(xvii)(A)(iii)(c)(i)(a)(i) Empresa de Distribucion Electrica de Canete S.A. (Edecanete), a Peruvian sociedad anonima, has its executive offices at Av. 28 de Julio 386, San Vicente de Canete, Canete. LUZ owns a 99.9999% interest and each of Tecsur S.A.A. and Inmobiliaria Luz del Sur S.A. owns a 0.00005% interest. 1.3.B.4.(a)(xvii)(A)(iii)(c)(i)(a)(ii) Inmobiliaria Luz del Sur S.A., a Peruvian sociedad anonima, with principal executive offices at Av. 28 de Julio 386, San Vincente de Canete, Canete, Peru, is 99.9999% owned by LUZ. 1.3.B.4.(a)(xvii)(A)(iii)(c)(i)(a)(iii) Luz del Sur International A. V. V., an Aruban company, with principal place of business at Zoutmanstraat 35, Oranjestad, Aruba, is wholly-owned by LUZ. 1.3.B.4.(a)(xvii)(A)(iii)(c)(ii) Energy Business International S.R.L. (EBI), a Peruvian company, with principal place of business at Zoutmanstraat 35, Oranjestad, Aruba, is a holding company with a 3.83% interest in LUZ. EBI is 99.99% owned by POC. 1.3.B.4.(a)(xvii)(A)(iii)(c)(iii) PSEG Sempra Peruvian Services Company, a Cayman Islands company, with registered office at Ugland House, South Church Street, Georgetown, Grand Cayman, Cayman Islands, British West Indies, was formed for the purpose of investing in power facilities in Latin America. PSEG Sempra Peruvian Services Company owns 100% less one share of IeSE. PSEG Sempra Peruvian Services Company II owns one share of IeSE. 1.3.B.4.(a)(xvii)(A)(iii)(c)(iii)(a) Inversiones en Servicios Electricos S.R.L. (IeSE), a Peruvian company, with registered office at Av. Camino Real No. 390, Oficina No. 801, Edificio Torre Central, Centro Camino Real, San Isidro, Lima 27, Peru, was formed for the purpose of investing in Latin America. IeSE owns a 51.79% interest in Tecsur S.A.A. 1.3.B.4.(a)(xvii)(A)(iii)(c)(iii)(a)(i) Tecsur S.A.A., a Peruvian sociedad anonima, with executive offices at Pasaje Calango 158 San Juan De Miraflores, Lima, Peru, is an energy-related services company. Ontario owns a 3.72% interest, POC owns a 31.51% interest, and IeSE owns a 51.79% interest, in Tecsur S.A.A. 1.3.B.4.(a)(xvii)(A)(iii)(c)(iv) PSEG Sempra Peruvian Services Company II, a Cayman Islands company, with registered office at Ugland House, South Church Street, George Town, Grand Cayman, Cayman Islands, British West Indies, was formed for the purpose of investing in power facilities in Latin America. PSEG Sempra Peruvian Services Company II owns one share of IeSE. 1.3.B.4.(a)(xvii)(A)(iii)(d) PSEG Cayman Americas IV Company, a Cayman Islands company, with registered office at Ugland House, South Church Street, George Town, Grand Cayman, Cayman Islands, British West Indies, was formed for the purpose of making future investments in Latin America. 30 1.3.B.4.(a)(xvii)(A)(iii)(e) Servicios Tecnicos PSEG Chile Limitada, a Chilean limited liability company, with registered office at Isidora Goyenechea No. 3621, Piso 20, Las Condes, Santiago, Chile, was formed for the purpose of providing management services. 1.3.B.4.(a)(xviii) Inframax, a Cayman Islands company, with registered office at Ugland House, South Church Street, George Town, Grand Cayman, Cayman Islands, British West Indies, was formed in order to provide services and materials relating to energy and communication delivery. Inframax holds a direct 33.34% interest in each of the following companies: 1.3.B.4.(a)(xviii)(A) BA Services.Com S.R.L., an Argentine limited liability company, with registered office at Avenida del Libertador No. 602, Piso 13, Buenos Aires, Argentina, was formed for the purpose of providing internet-access services to the area. BA Services.Com S.R.L. is 33.34% owned by Inframax. 1.3.B.4.(a)(xviii)(B) BA Trading S.R.L., an Argentine limited liability company, with registered office at Avenida del Libertador No. 602, Piso 13, Buenos Aires, Argentina, is presently inactive and is 33.34% owned by Inframax. 1.3.B.4.(a)(xviii)(C) BA Renewable S.R.L., an Argentine limited liability company, with registered office at Avenida del Libertador No. 602, Piso 13, Buenos Aires, Argentina, is presently inactive and is 33.34% owned by Inframax. 1.3.B.4.(a)(xix) PSEG Americas II Ltd. a Bermuda company, with principal executive offices at Clarendon House, 2 Church Street, Hamilton, Bermuda, has one direct 50%-owned subsidiary and one indirect 17.13%-owned subsidiary, as described below. 1.3.B.4.(a)(xix)(A) Turbogeneradores de Venezuela, C.A. (TGV), a Venezuelan compania anonima, with principal executive offices at Avenida Francisco de Miranda, Torre Country Club, Chacaito, Caracas 1050, Venezuela, is 50%, directly owned by PSEG Americas II Ltd. TGV owns 17.13% of Turbogeneradores Maracay, C.A. (TGM). 1.3.B.4.(a)(xix)(A)(i) Turbogeneradores Maracay, C.A. (TGM), a Venezuelan company and a FUCO, with principal executive offices at Avenida Francisco de Miranda, Torre Country Club, Chacaito, Caracas 1050, Venezuela, owns an investment in a gas-fired electric power-generation facility in Maracay, Venezuela. 1.3.B.4.(a)(xx) PSEG China Inc., a Delaware corporation, with registered office at 1209 Orange Street, Wilmington, Delaware 19801, has the following direct and indirect wholly-owned and partially-owned subsidiaries: 1.3.B.4.(a)(xx)(A) Meiya Power Company Limited, a Bermuda limited liability company, with registered offices at Clarendon House, 2 Church Street, Hamilton, Bermuda, is 50% owned by PSEG China Inc. and has the following direct and indirect wholly-owned and partially-owned subsidiaries: 31 1.3.B.4.(a)(xx)(A)(i) PSEG Zuojiang Hydropower Ltd. (ZHL), a Mauritius company and an EWG, with registered office at 608 St. James Court, St. Denis Street, Port Louis, Mauritius, was formed for the purpose of investing in power facilities in Zuojiang, China. ZHL has a direct 60% interest in Guangxi Zuojiang Meiya Hydropower Co. Ltd. (GZMHCL), as described below. 1.3.B.4.(a)(xx)(A)(i)(a) Guangxi Zuojiang Meiya Hydropower Co. Ltd. (GZMHCL), a Chinese joint venture company, with registered office at 17 You Ai North Road, Nanning City, Guangxi Zhuang Nationality Autonomous Region, China, owns and operates a hydroelectric power facility in Zuojiang, Guangxi Zhuang Nationality Autonomous Region, China. 1.3.B.4.(a)(xx)(A)(ii) PSEG Huangshi Power Ltd. (HUANGSHI), a Bermuda limited liability company and an EWG, with registered offices at Clarenden House, 2 Church Street, Hamilton, Bermuda, was formed for the purpose of investing in power facilities in China. HUANGSHI has a direct, 49% interest in Hubei Xisaishan Power Generation Company, Limited, as described below. 1.3.B.4.(a)(xx)(A)(ii)(a) Hubei Xisaishan Power Generation Company, Limited, a Chinese company, with registered offices at Xi Sai Shan Town, Huangshi City, Hubei Province, was formed for the purpose of investing in power facilities in China. 1.3.B.4.(a)(xx)(A)(iii) PSEG Shanghai BFG Company, a Cayman Islands company, with registered office at Ugland House, South Church Street, Georgetown, Grand Cayman, Cayman Islands, British West Indies, has one wholly-owned direct and one partially-owned indirect subsidiary, as described below. 1.3.B.4.(a)(xx)(A)(iii)(a) CanAm Energy China Holdings, LLC, a Delaware limited liability company, with registered office at 1209 Orange Street, Wilmington, Delaware 19801, was formed for the purpose of investing in power facilities in China. CanAm Energy China Holdings, LLC has a 65% interest in Shanghai Wei-Gang Energy Company Ltd. (SWGEC), as described below. 1.3.B.4.(a)(xx)(A)(iii)(a)(i) Shanghai Wei-Gang Energy Company Ltd. (SWGEC), a Chinese joint venture company and a FUCO, with registered office at 735 Changjiang Road, Shanghai, China 200431, owns and operates a blast-furnace, gas-fired, electric, power-generation facility in Shanghai, China. 1.3.B.4.(a)(xx)(A)(iv) PSEG Tongzhou Cogen Power Ltd., (TCP), a Bermuda limited liability company and an EWG, with registered offices at Clarendon House, 2 Church Street, Hamilton, Bermuda, has one direct 80%-owned subsidiary, as described below. 1.3.B.4.(a)(xx)(A)(iv)(a) Tongzhou Meiya Cogeneration Co. Ltd. (TMCC), a Chinese joint venture company, with offices at Jin Tong Lu, Tongzhou City, Jiangsu Province, China, owns and operates a coal-fired, cogeneration facility in Tongzhou City, Jiangsu Province, China. 32 1.3.B.4.(a)(xx)(A)(v) PSEG (Bermuda) Holdings Ltd., a Bermuda limited liability company, with registered offices at Clarendon House, 2 Church Street, Hamilton, Bermuda, owns a 60% interest in Shanghai Meiya Jinqiao Energy Co. Ltd., as described below. 1.3.B.4.(a)(xx)(A)(v)(a) Shanghai Meiya Jinqiao Energy Co. Ltd., a Chinese joint venture company, with registered office at 125 Chuan Qiao Road, Jinqiao EPZ, Shanghai, China, owns and operates a coal/oil-fired, steam plant in Shanghai, China. 1.3.B.4.(a)(xx)(A)(vi) China U.S. Power Partners I, Ltd. (CUPPI), a Bermuda limited liability company and an EWG, with registered offices at Clarendon House, 2 Church Street, Hamilton, Bermuda, has a 30% interest in Jingyuan Second Power Co., Ltd., (JINGYUAN), as described below. 1.3.B.4.(a)(xx)(A)(vi)(a) Jingyuan Second Power Co., Ltd., (JINGYUAN), a Chinese joint venture company, with registered office at Lanzhou City, Gansu Province, China, owns a coal-fired, electric, power-generation facility in Jingyuan, China. 1.3.B.4.(a)(xx)(A)(vii) Meiya Power China Holdings Limited, a Cayman Islands company, with registered office at Ugland House, South Church Street, George Town, Grand Cayman, Cayman Islands, British West Indies, owns the following direct and indirect subsidiaries: 1.3.B.4.(a)(xx)(A)(vii)(a) Meiya Power International Holding I, Limited., a Cayman Islands company, with registered office at Ugland House, South Church Street, George Town, Grand Cayman, Cayman Islands, British West Indies, owns a 100% interest in Meiya Electric Asia, Ltd. 1.3.B.4.(a)(xx)(A)(vii)(a)(i) Meiya Electric Asia, Ltd., a Mauritius company and an EWG, with registered office at 608 St. James Court, St. Denis Street, Port Louis, Mauritius, wholly-owns Nantong Meiya Co-generation Co., Ltd. (NANTONG). 1.3.B.4.(a)(xx)(A)(vii)(a)(i)(a) Nantong Meiya Co-generation Co., Ltd. (NANTONG), formerly Nantong Entergy Heat & Power Co., Ltd., a Chinese company, with registered office at No.12 Zhong Xiang Road, Nantong Economic and Technological Development Zone, Nantong Municipality, Jiangsu Province, China, owns and operates a steam-turbine, electric, power-generation facility in Jiangsu, China. 1.3.B.4.(a)(xx)(A)(viii) Meiya Hanneng Power Company Limited, a Cayman Islands company, with registered office at Ugland House, South Church Street, George Town, Grand Cayman, Cayman Islands, British West Indies, was formed for the purpose of making investments in China. 1.3.B.4.(a)(xx)(A)(ix) Meiya Power Investment Company Limited, a Cayman Islands company, with registered office at Ugland House, South Church Street, George Town, Grand Cayman, Cayman Islands, British West Indies, owns 1% of Fast Well Investments Limited (FWIL), as described below. 33 1.3.B.4.(a)(xx)(A)(x) Meiya Hexie Power Company Limited, a Cayman Islands company, with registered office at Ugland House, South Church Street, George Town, Grand Cayman, Cayman Islands, British West Indies, has the following direct and indirect partially-owned subsidiaries: 1.3.B.4.(a)(xx)(A)(x)(a) Fast Well Investments Limited (FWIL), a Hong Kong company and an EWG, with registered office at Suite 1501-7 Harbour Centre, 25 Harbour Road, Wanchai, Hong Kong, China was formed for the purpose of holding investments. Meiya Hexie Power Company Limited owns 99% of FWIL and Meiya Power Investment Company Limited owns the remaining 1%. FWIL has a direct 100% interest in Sichuan Hexie Electric Power Co., Ltd., as described below. 1.3.B.4.(a)(xx)(A)(x)(a)(i) Sichuan Hexie Electric Power Co., Ltd., a wholly-owned, foreign enterprise in China, and an EWG, with registered office at Gu Cheng Cun, Hua Yang Town, Chengdu City, Sichuan Province, China, was formed for the purpose of owning and operating a gas-fired electric power generation facility in Chengdu, Sichuan Province, China. 1.3.B.4.(a)(xx)(A)(xi) PSEG Rongjiang Hydropower Ltd. (PSEG Rongjiang), a Mauritius company and an EWG, with registered office at 608 St. James Court, St. Denis Street, Port Louis, Mauritius, was formed for the purpose of investing in power facilities in China. PSEG Rongjiang owns a 55% interest in Guangxi Rongjiang Meiya Company Ltd. (GRMCL) and an 80% interest in Guangxi Rongjiang Meiya Hydropower Company Ltd. 1.3.B.4.(a)(xx)(A)(xi)(a) Guangxi Rongjiang Meiya Company Ltd. (GRMCL), a Chinese joint venture company, with registered office at 70-1, Shan Zhong Road, Liuzhou City, Guangxi, China, owns a dam station. 1.3.B.4.(a)(xx)(A)(xi)(b) Guangxi Rongjiang Meiya Hydropower Company Ltd., a Chinese joint venture company and an EWG, with registered office at 70-1, Shan Zhong Road, Liuzhou City, Guangxi, China, owns a hydropower station. 1.3.B.4.(a)(xx)(A)(xii) Yaneng Consulting (Shanghai) Company Limited, a Chinese company, with principal executive offices at Unit 08-13, 14th Floor, POS Plaza, 1600 Century Avenue, Pudong New District, Shanghai, China, renders consulting services on technology and other services in relation to the electric and thermal-power industry. 1.3.B.4.(a)(xx)(A)(xiii) Meiya (Tao Yuan) Power Company Limited (TAO YUAN), a Malaysian company and EWG, with registered office at Level 13(E), Main Office Tower, Financial Park Labuan, Jalan Merdeka, 87000, Labuan F.T., Malaysia, owns a 35% interest in Kuo Kuang Power Company Limited, as described below. 1.3.B.4.(a)(xx)(A)(xiii)(a) Kuo Kuang Power Company Limited, a Taiwanese company, with registered office at No. 11 Beiyou 1st District, Nanshang Village, Guesham Shiang, Taoyuan County, Taiwan, China, was formed for the purpose of investing in power facilities in Taiwan. 34 1.3.B.4.(a)(xx)(A)(xiv) Meiya Sanjiang Hydropower Limited (MSHL), formerly Meiya Rudong Cogen Power Ltd., a Cayman Islands company, with registered office at Ugland House, South Church Street, George Town, Grand Cayman, Cayman Islands, British West Indies, was formed for the purpose of making investments in China. MSHL has the following direct partially-owned subsidiary: 1.3.B.4.(a)(xx)(A)(xiv)(a) Mianyang Sanjiang Meiya Hydropower Company Limited, a Chinese joint venture company, with registered office at 13, North Section, Mianzhou Da Dao, Mianyang, Sichuan Province, China, was formed for the purposes of constructing, owning and operating a hydroelectric-power facility in Mianyang, Sichuan Province, China. MSHL owns 75% of Mianyang Sanjiang Meiya Hydropower Company Limited. 1.3.B.4.(a)(xx)(A)(xv) Meiya Power Development Company Limited, a Hong Kong company, with registered office at 1501-7 Harbour Centre, 25 Harbour Road, Wanchai, Hong Kong, China, was formed for the purpose of making investments in Korea. 1.3.B.4.(a)(xx)(A)(xvi) Meiya Qujing Power Company Limited (MQPCL), a Cayman Islands company and an EWG, with registered office at Ugland House, South Church Street, George Town, Grand Cayman, Cayman Islands, British West Indies, was formed for the purpose of making investments in China. MQPCL has the following direct partially-owned subsidiary: 1.3.B.4.(a)(xx)(A)(xvi)(a) SDIC Qujing Power Generation Co., Ltd., a Chinese joint venture company, with registered office at Nanning Bei Lu, Qujing City, Yunnan Province, China, was formed for the purpose of constructing, owning and operating an electric power plant in Qujing City, Yunnan Province, China. 1.3.B.4.(a)(xx)(A)(xvii) Meiya (Taiwan) Power Development Limited, a Malaysian company, with registered office at Level 13(E), Main Office Tower, Financial Park Labuan, Jalan Merdeka, 87000, Labuan F.T., Malaysia, was formed for the purpose of business development in Taiwan. 1.3.B.4.(a)(xx)(A)(xviii) Meiya (Lanzhou) Power Company Limited, a Cayman Islands company, with registered office at Scotia Centre, 4th Floor, P.O. Box 2804, George Town, Grand Cayman, Cayman Islands, British West Indies, was formed for the purpose of making investments in China. 1.3.B.4.(a)(xx)(A)(xix) Meiya Qingjiang Hydropower Limited, a Cayman Islands company, with registered office at Scotia Centre, 4th Floor, P.O. Box 2804, George Town, Grand Cayman, Cayman Islands, British West Indies, was formed for the purpose of making investments in China. 1.3.B.4.(a)(xx)(A)(xx) Meiya Haian Cogen Power Limited, a Cayman Islands company, with registered office at Scotia Centre, 4th Floor, P.O. Box 2804, George Town, Grand Cayman, Cayman Islands, British West Indies, was formed for the purpose of making investments in China and owns the following subsidiary. 1.3.B.4.(a)(xx)(A)(xx)(a) Haian Meiya Cogeneration Co. Ltd., a Chinese company, with principal executive office at 27 Chang Jiang Dong Road, Haian Economic Development Zone, Haian, Jiangsu Province, China, was formed for the purpose of making investments in China. 35 1.3.B.4.(a)(xx)(A)(xxi) Meiya Yulchon Power Company Limited, a Maltese company, with principal executive office at 171 Old Bakery Street, Valetta, Malta, was formed for the purpose of making investment in Korea, and owns the following subsidiary. 1.3.B.4.(a)(xx)(A)(xxi)(a) Meiya Yulchon Generation Co., Ltd., a Korean company, with principal executive office at Yulchon First Local Industrial Complex, Haeryong-myun, Soonchun-shi, Chollanam-do, Korea, was formed for the purpose of investing in power facilities in Korea. 1.3.B.4.(a)(xxii) PSEG Salalah Inc., a Delaware corporation, with registered office at 1209 Orange Street, Wilmington, Delaware 19801, has the following direct and indirect wholly-owned and partially-owned subsidiaries: 1.3.B.4.(a)(xxii)(A) Salalah Power Holdings, Ltd., a Bermuda limited liability company, with principal executive offices at Clarendon House, 2 Church Street, Hamilton, Bermuda, is wholly-owned by PSEG Salalah Inc. and has the following direct and indirect wholly-owned and partially-owned subsidiaries: 1.3.B.4.(a)(xxii)(A)(i) Dhofar Power Company S.A.O.C. (Dhofar Power), an Oman company and a FUCO, with registered office at Hormuz Building, 5th Floor, Ruwi Roundabout, Ruwi, Muscat, Oman, was formed for the purpose of investing in power facilities in Oman. Dhofar Power is 81% owned by Salalah Power Holdings, Ltd. Dhofar Power owns a 99.99% interest in Dhofar Generating Company S.A.O.C. (Dhofar Generating). 1.3.B.4.(a)(xxii)(A)(i)(a) Dhofar Generating Company S.A.O.C. (Dhofar Generating), an Oman company and an EWG, with registered office at Hormuz Building, 5th Floor, Ruwi Roundabout, Ruwi, Muscat, Oman, was formed for the purpose of investing in power facilities in Oman. 1.3.B.4.(a)(xxiii) PSEG Argentina Holding Company LLC, a Delaware limited liability company, with registered office at 1209 Orange Street, Wilmington, Delaware 19801, was formed for the purpose of investing in Latin America. 1.3.B.4.(a)(xxiv) PSEG Cayman Americas I Company, a Cayman Islands company, with registered office at Ugland House, South Church Street, George Town, Grand Cayman, Cayman Islands, British West Indies, has one 99.99% subsidiary as described below. PSEG Cayman Americas II Company owns the remaining 0.01%. 1.3.B.4.(a)(xxiv)(A) PSEG Operadora S.R.L., an Argentine limited liability company, with registered office at Marcelo T. de Alvear 684, Piso 2, Buenos Aires, Argentina, is presently inactive. 1.3.B.4.(a)(xxv) PSEG Cayman Americas II Company, a Cayman Islands company, with registered office at Ugland House, South Church Street, George Town, Grand Cayman, Cayman Islands, British West Indies, owns 0.01% of PSEG Operadora S.R.L. 1.3.B.4.(a)(xxvi) PSEG Edeersa Company, formerly PSEG Sharquia Power Holdings Ltd., a Cayman Islands company, with registered office at Ugland House, South Church Street, George Town, Grand Cayman, Cayman Islands, British West Indies is wholly-owned by PSEG Americas Ltd. and is inactive. 36 1.3.B.4.(a)(xxvii) PSEG Chile Generation Ltd., formerly Salalah Power Holdings I Ltd., a Bermuda company, with principal executive offices at Clarendon House, 2 Church Street, Hamilton, Bermuda, is being used for the purpose of investing in power facilities in Chile and has one direct subsidiary, as described below. 1.3.B.4.(a)(xxvii)(A) Compania de Generacion del Sur S.A., a Chilean sociedad anonima, with registered office at Miraflores 222, Piso 24, Santiago, Chile, was formed for the purpose of investing in Latin America. Compania de Generacion del Sur is 99.99% owned by PSEG Chile Generation Ltd. and 0.01% owned by PSEG Brazil I Company. 1.3.B.4.(a)(xxviii) PSEG Uruguay Sociedad de Responsabilidad Limitada, an Uruguayan limited liability company, with registered office at Avenida 18 de julio 984, 4. Piso, Palacio Brasil, Montevideo, 11100, Uruguay, is presently inactive. PSEG Americas Ltd. owns 99% of PSEG Uruguay S.R.L. and Andina Mendoza Company own the remaining 1%. PSEG Uruguay Sociedad de Responsabilidad Limitada has the following, wholly-owned subsidiaries: 1.3.B.4.(a)(xxviii)(A) PSEG Spain S.L., a Spanish limited liability company, with registered office at Plaza de Pablo Ruiz Picasso, Sin Numero, Torre Picasso, Planta 5a, Madrid, 28020, Spain, is presently inactive. 1.3.B.4.(a)(xxviii)(B) PSEG Uruguay Finance Company, a Cayman Islands company, with registered office at Ugland House, South Church Street, George Town, Grand Cayman, Cayman Islands, British West Indies, is presently inactive. 1.3.B.5. PSEG India Company, a Cayman Islands company, with registered office at Ugland House, South Church Street, George Town, Grand Cayman, Cayman Islands, British West Indies, has one direct wholly-owned subsidiary and several indirect wholly-owned and partially-owned subsidiaries, as described below. 1.3.B.5.(a) PSEG EAMS Ltd., a Mauritius company, with registered office at 608 St. James Court, St. Denis Street, Port Louis, Mauritius, is a wholly-owned subsidiary of PSEG India Company and has two direct wholly-owned subsidiaries, one indirect partially-owned subsidiary, and one indirect wholly-owned subsidiary, as described below. 1.3.B.5.(a)(i) PSEG Operations Ltd., a Mauritius company, with registered office at 608 St. James Court, St. Denis Street, Port Louis, Mauritius, has the following direct partially-owned subsidiary: 1.3.B.5.(a)(i)(A) PSEG PPN Operations Private Limited (PPN Operations), an Indian company and an EWG, with registered office at Prince Towers', Floor 9, 25-26, College Road, Chennai, India 600 006, was formed for the purpose of operation and maintenance of power facilities in India. PSEG Ambalamugal Energy Company Ltd. owns one share of PPN Operations. 1.3.B.5.(a)(ii) PSEG PPN Energy Company Ltd. (PPN Energy), a Mauritius company and an EWG, with registered office at 608 St. James Court, St. Denis Street, Port Louis, Mauritius, was formed for the purpose of investing in power facilities in India. PPN Energy has a 20% ownership interest in PPN Power Generating Company Limited (PPN PGC), as described below. 37 1.3.B.5.(a)(ii)(A) PPN Power Generating Company Limited (PPN PGC), an Indian company, with registered office at Jhaver Plaza III Floor, I A Nungambakkam High Road, Nungambakkam, Chennai, India 600034, was formed for the purpose of owning and operating power facilities in India. 1.3.B.6. PSEG Europe (Delaware) LLC (PEDLLC), formerly PSEG Europe (Delaware) Inc. and PSEG Elcho (Delaware) Inc., a Delaware limited liability company, with registered office at 1209 Orange Street, Wilmington, Delaware 19801, has the following direct and indirect wholly-owned and partially-owned subsidiaries: 1.3.B.6.(a) PSEG Europe B.V., a Netherlands company, with principal executive offices at Weena 340, 3012 NJ Rotterdam, The Netherlands, is a direct wholly-owned subsidiary of PEDLLC and has the following direct wholly-owned subsidiaries 99%-owned subsidiaries and indirect subsidiaries: 1.3.B.6.(a)(i) PSEG Investments B.V., a Netherlands company, with principal executive offices at Weena 340, 3012 NJ Rotterdam, The Netherlands, was formed for the purpose of investing in power facilities in Turkey. PSEG Europe B.V. owns 99% of PSEG Investments B.V. and PEDLLC owns 1%. 1.3.B.6.(a)(i)(A) Konya Ilgin Elektrik Uretim ve Ticaret Ltd. Sti., a Turkish company, with registered address at Piyade Sk. 18 C Blok Flat No. 8, Cankaya, Akara, Turkey, was formed for the purpose of investing in Turkey. PSEG Investments B.V. owns 99% of Konya Ilgin Elektrik Uretim ve Ticaret Ltd. Sti., and PSEG Turkey B.V. owns 1%. 1.3.B.6.(a)(ii) PSEG Silesia B.V., a Netherlands company, with principal executive offices at Weena 340, 3012 NJ Rotterdam, The Netherlands, has the following two wholly-owned and one partially-owned subsidiaries: 1.3.B.6.(a)(ii)(A) PSEG Chorzow B.V., a Netherlands company and an EWG, with principal executive offices at Weena 340, 3012 NJ Rotterdam, The Netherlands, has a 75.196% interest in Elektrocieplownia Chorzow ELCHO Sp. z o.o. 1.3.B.6.(a)(ii)(A)(i) Elektrocieplownia Chorzow ELCHO Sp. z o.o. a Polish company, with principal executive offices at ul. Kosciuszki 6, 41-500 Chorzow, Poland, is developing a coal-fired power station in Chorzow, Poland, and upon completion of the facility is expected to qualify as an EWG. 1.3.B.6.(a)(iii) PSEG Turkey B.V., formerly Konya Ilgin Electric Production B.V., a Netherlands company, with principal, executive offices at Weena 340, 3012 NJ Rotterdam, The Netherlands, was formed for the purpose of investing in power facilities in Turkey. PSEG Europe B.V. owns 99% of PSEG Turkey B.V. and PEDLLC own 1%. 1.3.B.6.(a)(iv) PSEG Italia B.V. (formerly Ramat Hovav, B.V.), a Netherlands company, with principal executive offices at Weena 340, 3012 NJ Rotterdam, The Netherlands, was formed for the purpose of investing in power facilities in Italy. PSEG Italia B.V. owns a 50% interest in Prisma 2000 S.p.A. (Prisma) and an indirect interest in the following subsidiaries of Prisma. 38 1.3.B.6.(a)(iv)(A) Prisma 2000 S.p.A. (Prisma), an Italian company, with registered office at Via G. de Castro, 4-20144 Milan, Italy, was formed for the purpose of construction, operation and maintenance of investing in power projects in Italy. Prisma has the following direct wholly-owned and partially-owned subsidiaries: 1.3.B.6.(a)(iv)(A)(i) Cellulosa Calabra S.p.A., an Italian company, with registered office at Strada Statale 106, Zona Industriale 88900 Crotone, Italy, was formed for the purpose of investing in power facilities in Italy, and is 50% owned by Prisma. 1.3.B.6.(a)(iv)(A)(ii) Energ S.p.A., an Italian company, with registered office at Via Toledo (Piazzetta Duca d'Aosta) 265-80100 Napoli, Italy, was formed for the purpose of investing in power facilities in Italy and is 50% owned by Prisma. 1.3.B.6.(a)(iv)(A)(iii) San Marco Bioenergie S.p.A. (San Marco), an Italian company, with registered office at Via G. de Castro, 4-20144 Milan, Italy, was formed for the purpose of investing in power facilities in Italy and is 99.8% owned by Prisma. 1.3.B.6.(a)(iv)(A)(iv) Idrogest S.p.A., an Italian company, with registered office at Via Piemonte 117, Roma, Italy, is presently inactive. Prisma wholly owns Idrogest S.p.A. 1.3.B.6.(a)(iv)(A)(v) Elettrica Centro Nord S.r.l., an Italian company, with registered office at Corso Nizza 10 (Int 5), 12100 Cuneo, Italy, is presently inactive. Prisma wholly owns Elettrica Centro Nord S.r.l. 1.3.B.6.(a)(iv)(A)(vi) Sicob Energia S.r.l., an Italian company, with registered office at Castel San Giorgio, Localita Zona Industriale, 84083, Salerno, Italy, is presently inactive. Prisma wholly owns Sicob Energia S.r.l. 1.3.B.6.(a)(iv)(A)(vii) Ecogen S.p.A., an Italian company, with registered address at Strada Cipata 118, 46100, Mantova, Italy, is 0.30% owned by Prisma, and is presently inactive. 1.3.B.6.(a)(iv)(A)(viii) Biomasse Italia S.p.A., an Italian company and an EWG, with registered office at Strada Statale 106, Zona Industriale, 88900-Crotone, Italy, was formed for the purpose of investing in power facilities in Italy. Prisma owns a 50% interest in Biomasse Italia S.p.A., which has the following direct, wholly-owned subsidiaries. 1.3.B.6.(a)(iv)(A)(viii)(a) P.A. Energy S.r.l., an Italian company, with registered office at Viale Citta d'Europa 681, Roma, Italy, is presently inactive. 1.3.B.6.(a)(iv)(A)(viii)(b) Barzellotti Lemerangi Bioenergia S.r.l., an Italian company, with registered office at Corso Cavour 9, 06034 Foligno (PG), Perugia Italy, is presently inactive. 1.3.B.6.(a)(iv)(A)(viii)(c) La Montagnola Leopardi S.r.l., an Italian company, with registered office at Corso Cavour 9, 06034 Foligno (PG), Perugia, Italy, is presently inactive. 1.3.B.6.(a)(iv)(A)(viii)(d) Pontedera Energia S.p.A., an Italian company, with registered office at Via Carducci 8, Empoli (FI), Firenze, Italy, is presently inactive. 39 1.3.B.6.(a)(iv)(A)(viii)(e) Tecnogrp Beco S.p.A., an Italian company, with registered office at Via Carducci 8, Empoli (FI), Firenze, Italy, is 0.005% owned by Prisma, and is presently inactive. 1.3.B.6.(a)(v) PSEG Poland Distribution B.V. (PSEG Poland), a Netherlands company and an EWG, with principal executive offices at Weena 340, 3012 NJ Rotterdam, The Netherlands, owns approximately 75% of the following subsidiary: 1.3.B.6.(a)(v)(A) Elektrownia Skawina, S.A., a Polish company, with registered offices at ul. Pilsudskiego 10, Skawina, 32-050, Skawina, Poland, owns and operates a coal-fired power station at Skawina, Poland. 1.3.B.6.(a)(vi) PSEG Europe V B.V. a Netherlands company, with principal, executive offices at Weena 340, 3012 NJ Rotterdam, The Netherlands, is presently inactive. 1.3.C. Enterprise Group Development Corporation (EGDC), a New Jersey corporation, with principal executive offices at 80 Park Plaza, Newark, New Jersey 07102. EGDC is a nonresidential real-estate property-management business. EGDC has investments in five commercial real-estate properties (one of which is developed) in several states. EGDC is an 80%, joint-venture partner in each of State Street Square Urban Renewal Partners (SSSURPI), State Street Square Urban Renewal Partners II (SSSURPII), State Street Square Partners III (SSSIII), State Street Square 36 West Partners (SSS36W) and State Street Square NSB Partners (SSSNSB). EGDC is a wholly-owned subsidiary of Energy Holdings. EGDC has nine direct and two indirect subsidiaries, including general partnership interests, as described below. 1.3.C.1. EGDC - Concourse, Incorporated (Concourse), a Florida corporation, with principal executive offices at 80 Park Plaza, Newark, New Jersey 07102. Concourse is a 75% general partner in Concourse at Maitland Associates (CMA). EGDC owns 100% of Concourse, which is presently inactive. 1.3.C.1.(a) Concourse at Maitland Associates (CMA), a Florida general partnership, with principal executive offices at One Riverchase Parkway South, Birmingham, Alabama 35201, is presently inactive. 1.3.C.2. EGDC - Fairfax, Incorporated (Fairfax), a Virginia corporation, with principal executive offices at 80 Park Plaza, Newark, New Jersey 07102, is a 50%, general partner in Monument Place Associates (MPA). 1.3.C.2.(a) Monument Place Associates (MPA), a Virginia general partnership, with principal executive offices at 1416 Dodge Street, Room 1100, Omaha, Nebraska 68179, owns land on which it plans to develop an office complex in Fairfax County, Virginia. 1.3.C.3. State Street Square Urban Renewal Partners (SSSURPI), a New Jersey general partnership, with principal executive offices at 50 West State Street, Trenton, New Jersey 08608, owns land and improvements comprising one phase of a commercial-office complex in Trenton, New Jersey. 40 1.3.C.4. State Street Square Urban Renewal Partners II (SSSURPII), a New Jersey general partnership, with principal executive offices at 50 West State Street, Trenton, New Jersey 08608, owns vacant land presently used for surface parking comprising one phase of a commercial-office complex in Trenton, New Jersey. 1.3.C.5. State Street Square Partners III (SSSIII), a New Jersey general partnership, with principal executive offices at 50 West State Street, Trenton, New Jersey 08608, owns land in Trenton, New Jersey. 1.3.C.6. State Street Square NSB Partners (SSSNSB), a New Jersey general partnership, with principal executive offices at 50 West State Street, Trenton, New Jersey 08608, owns the former National State Bank Building in Trenton, New Jersey. 1.3.C.7. State Street Square 36 West Partners (SSS36W), a New Jersey general partnership, with principal executive offices at 50 West State Street, Trenton, New Jersey 08608, is presently inactive. 1.3.C.8. EGDC - Largo Incorporated (Largo), a Maryland corporation, with principal executive offices at 80 Park Plaza, Newark, New Jersey 07102, owns land on which it plans to develop an office complex in Largo, Maryland. 1.3.C.9. EGDC - Largo Management Incorporated (Largo Management), a Maryland corporation, with principal executive offices at 80 Park Plaza, Newark, New Jersey 07102, is presently inactive. 1.3.D. PSEG Energy Technologies Asset Management Company LLC (PETAMC), a New Jersey limited liability company, with principal executive office at 80 Park Plaza Newark, New Jersey 07102. PETAMC is a single member limited liability company with the sole member being Energy Holdings. PETAMC has the following seven direct subsidiaries, all of which were formed to hold assets of a former subsidiary of Energy Holdings, PSEG Energy Technologies, Inc. All are presently inactive. 1.3.D.1. PSEG Energy Technologies Asset Service Company LLC, with principal, executive office at 80 Park Plaza Newark, New Jersey 07102. 1.3.D.2. PSEG Energy Technologies Demand Management Assets Company LLC, with principal, executive office at 80 Park Plaza Newark, New Jersey 07102. 1.3.D.3. The Dowling Group, Inc., with principal executive office at 80 Park Plaza Newark, New Jersey 07102. 1.3.D.4. McBride Energy Service Company, LLC, with principal executive office at 80 Park Plaza Newark, New Jersey 07102. 1.3.D.5. PSEG ET 211 S.Broad Street Company, LLC, with principal executive office at 80 Park Plaza Newark, New Jersey 07102. 41 1.3.D.6. PSEG ET One NFL Plaza Company LLC, with principal executive office at 80 Park Plaza Newark, New Jersey 07102. 1.3.D.7. KHS Holding Corp., with principal executive office at 80 Park Plaza Newark, New Jersey 07102. 1.3.E. PSEG Capital Corporation (Capital), a New Jersey corporation, with principal executive offices at 80 Park Plaza, Newark, New Jersey 07102, is a wholly-owned, financing subsidiary of Energy Holdings, is presently inactive and is in the process of being dissolved. 1.3.F. Enterprise Capital Funding Corporation (Funding), a New Jersey corporation, with principal executive offices at 80 Park Plaza, Newark, New Jersey 07102, is a wholly-owned subsidiary of Energy Holdings and formerly served as a capital financing vehicle for Energy Holdings. Funding is presently inactive and is the process of being dissolved. 1.4. PSEG Services Corporation (Services), a New Jersey corporation, with principal executive offices at 80 Park Plaza, Newark, New Jersey 07102, is a wholly-owned subsidiary of PSEG. PSEG Services Corporation was formed in 1999 to provide internal support services to PSEG's operating subsidiaries. 1.5. Enterprise Capital Trust I, a Delaware Trust has its principal executive offices at 80 Park Plaza, Newark, New Jersey 07102, was formed for financing purposes and is presently active. 1.6. Enterprise Capital Trust II, a Delaware Trust has its principal executive offices at 80 Park Plaza, Newark, New Jersey 07102, was formed for financing purposes and is presently active. 1.7. Enterprise Capital Trust III, a Delaware Trust has its principal executive offices at 80 Park Plaza, Newark, New Jersey 07102, was formed for financing purposes and is presently active. 1.8. Enterprise Capital Trust IV, a Delaware Trust has its principal executive offices at 80 Park Plaza, Newark, New Jersey 07102, was formed for financing purposes and is presently active. 1.9. Enterprise Capital Trust V, a Delaware Trust has its principal executive offices at 80 Park Plaza, Newark, New Jersey 07102, was formed for financing purposes and is presently inactive. 1.10. PSEG Funding Trust I, a Delaware Trust has its principal executive offices at 80 Park Plaza, Newark, New Jersey 07102, was formed for financing purposes and is presently active. 1.11. PSEG Funding Trust II, a Delaware Trust, has its principal executive offices at 80 Park Plaza, Newark, New Jersey 07102, was formed for financing purposes and is presently active. 1.12. PSEG Funding Trust III, a Delaware Trust, has its principal executive offices at 80 Park Plaza, Newark, New Jersey 07102, was formed for financing purposes and is presently inactive. 1.13. PSEG Funding Trust IV, a Delaware Trust, has its principal executive offices at 80 Park Plaza, Newark, New Jersey 07102, was formed for financing purposes and is presently inactive. 42 2. A brief description of the properties of claimant and each of its subsidiary public utility companies used for the generation, transmission, and distribution of electric energy for sale, or for the production, transmission, and distribution of natural or manufactured gas, indicating the location of principal generating plants, transmission lines, producing fields, gas manufacturing plants, and electric and gas distribution facilities, including all such properties which are outside the State in which claimant and its subsidiaries are organized and all transmission or pipelines which deliver or receive electric energy or gas at the borders of such State. PSEG owns no property used for the generation, transmission, or distribution of electric energy for sale, or for the production, transmission, and distribution of natural or manufactured gas. As of December 31, 2003, PSE&G owned 41 switching and/or generating stations in New Jersey with an aggregate installed capacity of 21,079 megavolt-ampers and 241 substations with an aggregate installed capacity of 7,584 megavolt-amperes. In addition, 4 substations in New Jersey having an aggregate installed capacity of 122 megavolt-amperes were operated on leased property. Electric Transmission and Distribution Properties As of December 31, 2003, PSE&G's transmission and distribution system included approximately 21,361 circuit miles, of which approximately 7,294 miles were underground, and approximately 786,980 poles, of which approximately 536,236 poles were jointly owned. Approximately 99% of this property is located in New Jersey. In addition, as of December 31, 2003, PSE&G owned five electric distribution headquarters and four sub-headquarters in four operating divisions all located in New Jersey. Gas Distribution Properties As of December 31, 2003, the daily gas capacity of PSE&G's 100%-owned peaking facilities (the maximum, daily, gas delivery available during the three, peak-winter months) consisted of liquid petroleum air gas (LPG) and liquefied natural gas (LNG) and aggregated 2,973,000 therms (approximately 2,886,000 cubic feet on an equivalent basis of 1,030 Btu/cubic foot) as shown in the following table: Daily Capacity Plant Location -------------- ----- -------- (Therms) Burlington LNG............. Burlington, NJ 773,000 Camden LPG................. Camden, NJ 280,000 Central LPG................ Edison Twp., NJ 960,000 Harrison LPG............... Harrison, NJ 960,000 --------- Total...................... 2,973,000 ========= 43 As of December 31, 2003, PSE&G owned and operated approximately 16,932 miles of gas mains, owned 12 gas distribution headquarters and two sub headquarters all in two operating regions located in New Jersey and owned one meter shop in New Jersey serving all such areas. In addition, PSE&G operated 61 natural gas metering or regulating stations, all located in New Jersey, of which 28 were located on land owned by customers or natural gas pipeline companies supplying PSE&G with natural gas and were operated under lease, easement or other similar arrangement. In some instances, the pipeline companies owned portions of the metering and regulating facilities. 3. The following information is for the last calendar year with respect to claimant and each of its subsidiary public utility companies: (a) Number of kwh. (megawatt (Mwh.) = 1,000 kilowatts) of electric energy sold (at retail or wholesale), and Mcf. of natural or manufactured gas distributed at retail. PSEG - None. PSE&G - 42,080,253 Mwh. (retail and wholesale) sold primarily in the state of New Jersey providing revenue of approximately $3,642 million in 2003. PSE&G - 425,420,535 Mcf. (2003 basis of 1,035 BTU/cubic foot) sold in the state of New Jersey providing revenue of approximately $2,786 million in 2003. (b) Number of kwh. of electric energy and Mcf. of natural or manufactured gas distributed at retail outside the State in which each such company is organized. PSEG - None. PSE&G - None. (c) Number of Mwh. of electric energy and Mcf. of natural or manufactured gas sold at wholesale outside the State in which each such company is organized, or at the State line. PSEG - None. PSE&G - None. Power - 53,205,135 Mcf. total off-system sales sold in the states of New Jersey (at N.J. City-Gate), New York, Pennsylvania, Maryland, South Carolina, Ohio, Washington D.C., Virginia, North Carolina, Georgia, Texas, Mississippi and Louisiana providing revenue of approximately $338 million in 2003. 44 (d) Number of Mwh. of electric energy and Mcf. of natural or manufactured gas purchased outside the state in which each such company is organized or at the state line. PSEG - None. PSE&G - None. Power - 387,940,860 Mcf. received through sales and transportation agreements with interstate pipelines having delivery points within the State from the states of New Jersey, New York, Pennsylvania, Ohio, Texas, Louisiana and Mississippi at a cost of approximately $2,124 million in 2003. 4. The following information for the reporting period with respect to claimant and each interest it holds directly or indirectly in an EWG or a foreign utility company, stating monetary amounts in United States dollars: (a) Name, location, business address and description of the facilities used by the EWG or foreign utility company for the generation, transmission and distribution of electric energy for sale or the distribution at retail of natural or manufactured gas. (i) China U.S. Power Partners I, Ltd. (CUPPI), a Bermuda limited liability company, with registered office at Clarendon House, 2 Church Street, Hamilton, Bermuda. CUPPI has a 30% interest in JINGYUAN, which owns a coal-fired, electric, power-generation facility in Jingyuan, China. CUPPI is an EWG. (ii) PSEG Zuojiang Hydropower Ltd. (ZHL), a Mauritius company, with registered office at 608 St. James Court, St. Denis Street, Port Louis, Mauritius, has a direct 60% interest in GZMHCL, which owns a hydroelectric-power facility in Zuojiang, Guangxi Zhuang Nationality Autonomous Region, China. ZHL is an EWG. 45 (iii) PSEG Tongzhou Cogen Power Ltd. (TCP), a Bermuda limited liability company, with registered offices at Clarendon House, 2 Church Street, Hamilton, Bermuda. TCP owns an 80% interest in TMCC, which owns a coal-fired cogeneration facility in Tongzhou City, Jiangsu Province, China. ChinaInc indirectly owns 40% of TMCC. TCP is an EWG. (iv) Rio Grande Energia, S.A. (RGE), a Brazilian company, with registered office at Rua Sao Luiz, No. 077, 70 Andar, Porto Alegre, Rio Grande do Sul, Brazil, is an electric- distribution company serving the State of Rio Grande do Sul, Brazil. IPE, a Brazilian company, owns 32.46% of RGE. PSEG Brazil Company and PSEG Brazil I Company, both Cayman companies, each own 50% of IPE. Pampa Energia Ltda. wholly owns both PSEG Brazil Company and PSEG Brazil I Company. RGE is a FUCO. (v) Turbogeneradores Maracay, C.A. (TGM), a Venezuelan company, with principal offices located at Avenida Francisco de Miranda, Piso 12, Torre Country Club, Chacaito, and Caracas 1050, Venezuela, owns and operates two nominal 20 MW simple- cycle gas turbine generators at the paper-mill facilities of Manufacturas de Papel, C.A. (MANPA) S.A.C.A. in Maracay, Venezuela. TGM is a direct 17.13% owned subsidiary of TGV. TGV is a direct, 50%-owned subsidiary of PSEG Americas II Ltd. TGM is a FUCO. (vi) Turboven Cagua Company Inc. (CAGUA), a Cayman Islands company, with registered office at c/o Trident Trust Company (Cayman) Limited, Fourth Floor, One Capital Place, P. O. Box 847, Grand Cayman, Cayman Islands, British West Indies, was formed for the purpose of making investments in Latin America. CAGUA is a FUCO. (vii) Turboven Maracay Company Inc. (MARACAY), a Cayman Islands company, with registered office at c/o Trident Trust Company (Cayman) Limited, Fourth Floor, One Capital Place, P. O. Box 847, Grand Cayman, Cayman Islands, British West Indies, is a FUCO. MARACAY was formed for the purpose of making investments in Latin America. MARACAY is a FUCO. 46 (viii) Turboven Valencia Company Inc. (VALENCIA), a Cayman Islands company, with registered office at c/o Trident Trust Company (Cayman) Limited, Fourth Floor, One Capital Place, P. O. Box 847, Grand Cayman, Cayman Islands, British West Indies, was formed for the purpose of making a future investment in Latin America. VALENCIA is a FUCO. (ix) PSEG PPN Energy Company Ltd. (PPN Energy), a Mauritius company, with registered office at 608 St. James Court, St. Denis Street, Port Louis, Mauritius, was formed for the purpose of investing in power facilities in Kerala, India. PPN Energy has a 20% ownership interest in PPN PGC. PPN Energy is an EWG. (x) PSEG PPN Operations Private Limited (PPN Operations), an Indian company, with registered office at Prince Towers', Floor 9, 25-26, College Road, Chennai, India 600 006, was formed for the purpose of providing operations and maintenance services to power facilities in India. PPN Operations is an EWG. (xi) PSEG International Ltd., a Bermuda limited liability company, with principal, executive offices at Clarendon, House, 2 Church Street, Hamilton Bermuda HM11, has a 60% interest in CPC, a Tunisian company. PSEG International Ltd. is an EWG. (xii) Guadalupe Power Partners, LP (GPP), a Delaware limited partnership, with registered office at 1209 Orange Street, Wilmington, Delaware 19801 owns a natural gas-fired power-generating facility in Guadalupe County, Texas. Texgen I and Texgen II together own 50% of TIELP, which owns 100% of Guadalupe Power I, LLC and Guadalupe Power II, LLC. GPP is an EWG. 47 (xiii) Odessa-Ector Power Partners, L.P. (OEPP), a Delaware limited partnership, with registered office at 1209 Orange Street, Wilmington, Delaware 19801, owns a natural gas-fired power-generating facility in Ector County, Texas. Texgen I and Texgen II together own 50% of TIELP, which owns 100% of Odessa-Ector Power I, LLC and Odessa-Ector Power II, LLC. OEPP is an EWG. (xiv) Chilquinta Energia S.A. (CHILQUINTA), a Chilean sociedad anonima, with principal executive offices at General Cruz No. 222, Valparaiso, Chile, owns electric distribution facilities. AenP has a 49.9925% beneficial ownership interest in CHILQUINTA. CHILQUINTA is a FUCO. (xv) Luz del Sur S.A.A. (LUZ), a Peruvian sociedad anonima, with principal executive offices at Canaval y Moreyra 380, Piso 16, San Isidro Lima 27, Peru, is an electric-distribution company serving southern Lima, Peru. Ontario owns a 61.16% of LUZ. POC holds a direct interest of 22.89% in LUZ and EBI owns 3.83% LUZ. LUZ is a FUCO. (xvi) PSEG Fossil LLC (Fossil), a Delaware limited liability company, with principal executive offices at 80 Park Plaza, Newark, New Jersey 07102 is a wholly-owned subsidiary of Power, is an EWG and was formed to operate the fossil-fueled, electric-generation assets of PSE&G which were transferred to Power during 2000. (xvii) PSEG Nuclear LLC (Nuclear), a Delaware limited liability company, with principal executive offices at 80 Park Plaza, Newark, New Jersey 07102, is a wholly-owned subsidiary of Power and is an EWG. Nuclear was formed to operate the nuclear-fueled, electric-generation assets of PSE&G, which were transferred to Power during 2000. (xvii) PSEG Chorzow B.V., a Netherlands Company, with principal executive offices at Weena 340, 3012 NJ Rotterdam The Netherlands, was formed for the purpose of holding shares in Elektrocieplownia Chorzow ELCHO Sp. z o.o. of which it presently holds 75.196%. Elektrocieplownia Chorzow ELCHO Sp. z o.o. is developing a coal-fired power station in Chorzow Poland. PSEG Chorzow B.V. is an EWG. 48 (xix) PSEG Rongjiang Hydropower Ltd. (PSEG Rongjiang), a Mauritius company, with registered office at 608 St. James Court, St. Denis Street, Port Louis, Mauritius, was formed for the purpose of investing in power facilities in China. PSEG Rongjiang owns a 55% interest in GRMCL and an 80% interest in Guangxi Rongjiang Meiya Hydropower Company Ltd. PSEG Ronjiang is an EWG. (xx) Kalaeloa Partners, L.P. (KPLP), a Delaware limited partnership, with registered office at 1209 Orange Street, Wilmington, Delaware 19801, owns a heavy, oil-fired, cogeneration QF on the Island of Oahu in Hawaii. KPLP is an EWG. (xxi) Meiya Electric Asia, Ltd., a Mauritius company, with registered office at 608 St. James Court, St. Denis Street, Port Louis, Mauritius, wholly owns NANTONG, which owns a coal-fired, cogeneration facility in Nantong, Jiangsu Province, China. Meiya Electric Asia, Ltd is an EWG. (xxii) Shanghai Wei-Gang Energy Company Ltd. (SWGEC), a Chinese joint venture company, with registered office at 735 Changjiang Road, Shanghai, 200431, China, owns and operates a blast-furnace, gas-fired, electric, power-generation facility in Shanghai, China. SWGEC is a FUCO. (xxiii) PSEG Power New York Inc. (Power New York), a Delaware corporation, with principal executive offices at Route 144 Glen Mount, Albany, New York 12077, is a wholly-owned subsidiary of Fossil. Power New York was formed to acquire electric-generation assets located in the state of New York. Power New York is an EWG. (xxiv) GWF Energy LLC, a Delaware limited liability company, with registered office at 1209 Orange Street, Wilmington, Delaware 19801, was formed for the purpose of investing in three natural gas-fired peaker facilities in California, two of which are operating and one of which is under construction. GWF Energy LLC is an EWG. 49 (xxv) Biomasse Italia S.p.A., an Italian company, with registered office at Strada Statale 106, Zona Industriale, 88900-Crotone, Italy, was formed for the purpose of investing in power facilities in Italy. Prisma owns a 50% interest in Biomasse Italia S.p.A. Biomasse Italia S.p.A. is an EWG. (xxvi) Texas Independent Energy Operating Company, LLC (TIE), a Delaware limited liability company, with registered office at 1209 Orange Street, Wilmington, Delaware 19801, is a wholly-owned subsidiary of TIELP. TIE was formed to operate and maintain the eligible, power-generating facility owned by each of GPP and OEPP. TIE is an EWG. (xxvii) Danskammer OP LLC (Danskammer OP), a Delaware limited liability company, with principal executive offices at 1300 North Market Street Suite 405, Wilmington, Delaware 19801 is an indirect, wholly-owned subsidiary of RCMC. Danskammer OP was formed for the purpose of investing in power facilities in the State of New York. Danskammer OP is an EWG. (xxviii) Danskammer OL LLC (Danskammer OL), a Delaware limited liability company, with principal executive offices at 1300 North Market Street Suite 405, Wilmington, Delaware 19801, is an indirect, wholly-owned subsidiary of RCMC. Danskammer OL was formed for the purpose of investing in power facilities in the State of New York. Danskammer OL is an EWG. (xxix) Roseton OP LLC (Roseton OP), a Delaware limited liability company, with principal executive offices at 1300 North Market Street Suite 405, Wilmington, Delaware 19801, is an indirect wholly-owned subsidiary of RCMC. Roseton OP was formed for the purpose of investing in power facilities in the State of New York. Roseton OP is an EWG. 50 (xxx) Roseton OL LLC (Roseton OL), a Delaware limited liability company, with principal executive offices at 1300 North Market Street Suite 405, Wilmington, Delaware 19801. Roseton OL, an indirect wholly-owned subsidiary of RCMC, was formed for the purpose of investing in power facilities in the State of New York. Roseton OL is an EWG. (xxxi) Conemaugh Lessor Genco LLC (Conemaugh Lessor), a Delaware limited liability company, with principal executive offices at 80 Park Plaza, Newark, New Jersey 07102, is an indirect wholly-owned subsidiary of PSRC. Conemaugh Lessor was formed for the purpose of investing in power facilities in the Commonwealth of Pennsylvania and is an EWG. (xxxii) Keystone Lessor Genco LLC (Keystone Lessor), a Delaware limited liability company, with principal executive offices at 80 Park Plaza, Newark, New Jersey 07102, is an indirect, wholly-owned subsidiary of PSRC. Keystone Lessor was formed for the purpose of investing in power facilities in the Commonwealth of Pennsylvania and is an EWG. (xxxiii) Shawville Lessor Genco LLC (Shawville Lessor), a Delaware limited liability company, with principal executive offices at 80 Park Plaza, Newark, New Jersey 07102, is an indirect, wholly-owned subsidiary of PSRC. Shawville Lessor was formed for the purpose of investing in power facilities in the Commonwealth of Pennsylvania and is an EWG. 51 (xxxiv) PSEG Lawrenceburg Energy Company LLC (PSEG Lawrenceburg), a Delaware limited liability company and an EWG, with registered office at 1209 Orange Street, Wilmington, Delaware 19801, was formed for the purpose of investing in a power facility in Lawrenceburg, Indiana. (xxxv) PSEG Waterford Energy LLC (PSEG Waterford), a Delaware limited liability company and an EWG, with registered office at 1209 Orange Street, Wilmington, Delaware 19801, was formed for the purpose of investing in a power facility in Waterford, Ohio. This company is a wholly-owned subsidiary of Fossil. (xxxvi) Empresa Electrica de la Frontera S.A. (Frontel), a Chilean company, with registered office at Isidora Goyenechea No. 3621, Piso 20, Las Condes, Santiago, Chile, owns electric-distribution facilities in Chile. Frontel is 95.889% owned by Inversiones Chile and 0.006% owned by Chilean Equity II. Frontel owns a 0.10% direct interest in each of Creo and STS, as described below. Frontel is a FUCO. (xxxvii) Compania Electrica Osorno S.A. (Creo), a Chilean sociedad anonima, with registered office at Manuel Bulnes 441, Osorno, Chile, owns electric-distribution facilities in Chile. Creo is 0.1% owned by Frontel and 99.9% owned by SAESA. Creo is a FUCO. (xxxviii) Sistema de Transmision del Sur S.A. (STS), a Chilean sociedad anonima, with registered office at Isidora Goyenechea No. 3621, Piso 20, Las Condes, Santiago, Chile, owns electric-transmission facilities in Chile. STS is 0.1% owned by Frontel and 99.9% owned by SAESA. STS is a FUCO. (xxxix) PSEG Power Midwest LLC (Power Midwest), a Delaware limited liability company and an EWG, with registered office at 1209 Orange Street, Wilmington, Delaware 19801, was formed for the purpose of operating power facilities in the Midwestern United States. 52 (xl) PSEG Power Connecticut LLC (Power Connecticut), a Connecticut limited liability company, with registered office at 1 Commercial Plaza, Hartford, Connecticut 06103 in care of CT Systems, is an EWG. On December 6, 2002 Fossil acquired the membership interests of Wisvest-Connecticut LLC from Wisvest Corporation, an unrelated Wisconsin corporation, and thereafter changed the name to Power Connecticut. Power Connecticut's purpose is to own and operate fossil-fueled, electric-generation assets in Connecticut. (xli) Empresa de Energia Rio Negro S.A. (Edersa), an Argentine sociedad anonima, with registered office at Mengelle 145 Cipolleti, Rio Negro Province, Argentina, owns electric-distribution facilities in Chile. Edersa is 50% owned by SAESA. Edersa is a FUCO. (xlii) Electroandes S.A., a Peruvian sociedad anonima, with registered address at Avenida Canaval y Moreyra 380, Torre Siglo XXI, Piso 16, San Isidro, Lima 27, Peru, owns a hydro-powered electric-generation station. Electroandes S.A. is a FUCO. (xliii) PSEG Poland Distribution B.V. (PSEG Poland), with principal executive offices at Weena 340, 3012 NJ Rotterdam, Netherlands, and an EWG, owns approximately 75% of Elektrownia Skawina S.A. (Skawina). Skawina, a Polish company, with registered offices at Skawina, Poland, owns and operates a coal-fired power station at Skawina, Poland. (xliv) San Marco Bioenergie S.p.A. (San Marco), an Italian company, with registered office at Via G. de Castro, 4-20144 Milan, Italy, was formed for the purpose of investing in power facilities in Italy. Prisma owns 99.80% of San Marco. San Marco is an EWG. (xlv) Dhofar Power Company S.A.O.C. (Dhofar Power), an Oman company, with registered office at Hormuz Building, 5th Floor, Ruwi Roundabout, Ruwi, Muscat, Oman, was formed for the purpose of investing in power facilities in Oman. Dhofar Power is 81% owned by Salalah Power Holdings, Ltd. Dhofar Power owns a 99.99% interest in Dhofar Generating. Dhofar Power is an EWG. 53 (xlvi) Dhofar Generating Company S.A.O.C. (Dhofar Generating) an Oman company, with registered office at Hormuz Building, 5th Floor, Ruwi Roundabout, Ruwi, Muscat, Oman, was formed for the purpose of investing in power facilities in Oman. Dhofar Generating is an EWG. (xlvii) Meiya (Tao Yuan) Power Company Limited (TAO YUAN) a Malaysian company, with registered office at Level 13(E), Main Office Tower, Financial Park Labuan, Jalan Merdeka, 87000, Labuan F.T., Malaysia, owns a 35% interest in Kuo Kuang Power Company Limited. TAO YUAN is an EWG. (xlviii) Fast Well Investments Limited (FWIL) a Hong Kong company, with registered office at Suite 1501-7 Harbour Centre, 25 Harbour Road, Wanchai, Hong Kong, China, has a direct 100% interest in Sichuan Hexie Electric Power Co., Ltd. Sichuan Hexie Electric Power Co., Ltd. was formed for the purpose of owning and operating a gas-fired, electric-power, generation facility in Chengdu, Sichuan Province, China. Meiya Hexie Power Company Limited owns 99% of FWIL, and Meiya Power Investment Company Limited owns the remaining 1%. FWIL has a direct, 100% interest in Sichuan Hexie Electric Power Co., Ltd. FWIL is an EWG. (xlix) PSEG Huangshi Power Ltd. (HUANGSHI) a Bermuda limited liability company, with registered offices at Clarendon House, 2 Church Street, Hamilton, Bermuda, was formed for the purpose of investing in power facilities in China. HUANGSHI has a direct, 49% interest in Hubei Xisaishan Power Generation Company, Limited. HUANGSHI is an EWG. (l) Meiya Qujing Power Company Limited (MQPCL), a Cayman Islands company, with registered office at Ugland House, South Church Street, George Town, Grand Cayman, Cayman Islands, British West Indies, owns 37% of SDIC Qujing Power Generation Co., Ltd. SDIC Qujing Power Generation Co., Ltd. was formed for the purpose of constructing, owning and operating an elecric power plant in Qujing City, Yunnan Province, China. MQPCL is an EWG. (li) Sociedad Austral de Electricidad S.A. (SAESA), a Chilean sociedad anonima, with registered office at Isidora Goyenechea No. 3621, Piso 20, Las Condes, Santiago, Chile, was formed for the purpose of investing in Latin America and owns electric-distribution facilities in Chile. SAESA is 99.922% owned by Inversiones Chile and 0.0056% owned by Chilean Equity II. SAESA is a FUCO. (lii) Empresa Electrica de Aisen S.A. (Edelaysen), a Chilean sociedad anonima, with registered office in Chile, was formed for the purpose of investing in Latin America. Edelaysen is 91.66% owned by SAESA. Edelaysen is a FUCO. 54 (b) Name of each system company that holds an interest in such EWG or foreign utility company; and description of the interest held. See Exhibit B attached hereto and Items 1 and 4(a) above. (c) Type and amount of capital invested, directly or indirectly, by the holding company claiming exemption; any direct or indirect guarantee of the security of the EWG or foreign utility company by the holding company claiming exemption; and any debt or other financial obligation for which there is recourse, directly or indirectly, to the holding company claiming exemption or another system company, other than the EWG or foreign utility company. (i) CUPPI As of December 31, 2003, PSEG has an indirect aggregate capital investment in CUPPI of US$39,299,753 all of which is equity. (ii) ZHL As of December 31, 2003, PSEG has an indirect aggregate capital investment in ZHL of US$24,174,752 all of which is equity. (iii) TCP As of December 31, 2003, PSEG has an indirect aggregate capital investment in TCP of US$6,798,004 all of which is equity. 55 (iv) RGE As of December 31, 2003, PSEG has an indirect aggregate capital investment in RGE of US$163,797,137 all of which is equity. (v) TGM As of December 31, 2003, PSEG has an indirect, capital investment in TGM of US$1,844,199 all of which is equity. PSEG and its subsidiaries (direct and indirect) have no other security guarantees, debt or other financial obligations relative to TGM. (vi) CAGUA Turboven Company Inc., a Cayman company, is the 100% direct parent of CAGUA. PSEG has a 50% indirect interest in Turboven Company, Inc. As of December 31, 2003, PSEG has an indirect capital investment in Turboven Company Inc. of US$46,609,179. (vii) MARACAY Turboven Company Inc., a Cayman company, is the 100% direct parent of MARACAY. PSEG has a 50% indirect interest in Turboven Company, Inc. As of December 31, 2003, PSEG has an indirect capital investment in Turboven Company Inc. of US$46,609,179. (viii) VALENCIA Turboven Company Inc., a Cayman company, is the 100% direct parent of VALENCIA. PSEG has a 50% indirect interest in Turboven Company, Inc. As of December 31, 2003, PSEG has an indirect capital investment in Turboven Company Inc. of US$46,609,179. (ix) PPN Energy As of December 31, 2003, PSEG has an indirect capital investment in PPN Energy of US$29,817,000 all of which is equity. 56 (x) PPN Operations As of December 31, 2003, PSEG has an indirect capital investment in PPN Operations of US$1,890,000 all of which is equity. (xi) PSEG International Ltd./CPC As of December 31, 2003, PSEG has an indirect capital investment in CPC of US$37,828,150. (xii) GPP TIELP is the 100% indirect parent of GPP. PSEG has a 50% indirect interest in Texas Independent Energy. As of December 31, 2003, PSEG has an indirect capital investment in TIELP of US$237,361,904 of which US$168,366,844 is equity and US$68,995,060 is partnership advances. (xiii) OEPP TIELP is the 100% indirect parent of Odessa Power Partners. PSEG has a 50% indirect interest in Texas Independent Energy. As of December 31, 2003, PSEG has an indirect capital investment in TIELP of US$237,361,904 of which US$168,366,844 is equity and US$68,995,060 is partnership advances. (xiv) CHILQUINTA As of December 31, 2003, PSEG has an indirect capital investment in CHILIQUINTA of US$347,956,669 of which US$187,956,669 is equity and US$160,000,000 is debt (including interest). (xv) LUZ As of December 31, 2003, PSEG has an indirect capital investment in LUZ of US179,408,944. 57 (xvi) Fossil As of December 31, 2003, PSEG has an indirect capital investment in Fossil of US$2,000,802,135 all of which is equity. (xvii) Nuclear As of December 31, 2003, PSEG has an indirect capital investment in Nuclear of US$682,347,077 all of which is equity. (xviii) PSEG Chorzow B.V. As of December 31, 2003, PSEG has an indirect capital investment in PSEG Chorzow B.V. of US$15,551,000 all of which is equity. (xix) PSEG Rongjiang As of December 31, 2003, PSEG has an indirect capital investment in PSEG Rongjiang of US$11,695,211 all of which is equity. (xx) KPLP As of December 31, 2003, PSEG has an indirect capital investment in KPLP of US$30,508,589 all of which is equity. (xxi) Meiya Electric Asia, Ltd. As of December 31, 2003, PSEG has an indirect capital investment in Meiya Electric Asia, Ltd. of US$5,416,607 all of which is equity. (xxii) SWEGC As of December 31, 2003, PSEG has an indirect capital investment in SWEGC of US$16,717,642 all of which is equity. (xxiii) Power New York As of December 31, 2003, PSEG has an indirect capital investment in Power New York of US$133,125,381 all of which is equity. 58 (xxiv) GWF Energy LLC As of December 31, 2003, PSEG has an indirect capital investment in GWF Energy LLC of US$92,556,659 all of which is equity. (xxv) Biomasse Italia S.p.A. Prisma is the 50% indirect parent of Biomasse Italia S.p.A. PSEG has a 50% indirect interest in Prisma. As of December 31, 2003, PSEG has an indirect capital investment in Prisma of US$78,731,958 of which US$14,887,865 is equity, and US$63,844,093 is joint venture advances. (xxvi) TIE TIELP is the 100% indirect parent of TIE. PSEG has a 50% indirect interest in Texas Independent Energy. As of December 31, 2003, PSEG has an indirect capital investment in TIELP of US$237,361,904 of which US$168,366,844 is equity and US$68,995,060 is partnership advances. (xxvii) Danskammer OP As of December 31, 2003, PSEG has an indirect capital investment in Danskammer OP of US$59,468,544 all of which is equity. (xxviii) Danskammer OL As of December 31, 2003, PSEG has an indirect capital investment in Danskammer OL of US$59,468,644 all of which is equity. (xxxi) Roseton OP As of December 31, 2003, PSEG has an indirect capital investment in Roseton OP of US$122,720,654 all of which is equity. (xxx) Roseton OL As of December 31, 2003, PSEG has an indirect capital investment in Roseton OL of US$122,720,754 all of which is equity. 59 (xxxi) Conemaugh Lessor As of December 31, 2003, PSEG has an indirect capital investment in Conemaugh Lessor of US$9,939,543 all of which is equity. (xxxii) Keystone Lessor As of December 31, 2003, PSEG has an indirect capital investment in Keystone Lessor of US$9,885,300 all of which is equity. (xxxiii) Shawville Lessor As of December 31, 2003, PSEG has an indirect capital investment in Shawville Lessor of US US$8,372,409 all of which is equity. (xxxiv) PSEG Lawrenceburg Energy Company LLC As of December 31, 2003, PSEG has an indirect capital investment in PSEG Lawrenceburg Energy Company LLC of US$236,116,964. (xxxv) PSEG Waterford Energy LLC As of December 31, 2003, PSEG has an indirect capital investment in PSEG Waterford Energy LLC of US$178,181,549. (xxxvi) Frontel Frontel is 95.889% owned by SAESA. PSEG has a 100% indirect interest in SAESA. As of December 31, 2003, PSEG has an indirect capital investment in SAESA of US$554,831,656 all of which is equity. 60 (xxxvii) Creo Creo is 99.9% owned by SAESA. PSEG has a 100% indirect interest in SAESA. As of December 31, 2003, PSEG has an indirect capital investment in SAESA of US$554,831,656 all of which is equity. (xxxviii) STS STS is 99.90% owned by SAESA. PSEG has a 100% indirect interest in SAESA. As of December 31, 2003, PSEG has an indirect capital investment in SAESA of US$554,831,656 all of which is equity. (xxxix) Power Midwest As of December 31, 2003, PSEG has an indirect capital investment in Power Midwest of US$(937,010) all of which is equity. (xl) Power Connecticut As of December 31, 2003, PSEG has an indirect capital investment in Power Connecticut of US$139,372,131 all of which is equity. (xli) Edersa Edersa is 50% owned by Saesa. PSEG has a 100% indirect interest in Saesa. As of December 31, 2003, PSEG has an indirect capital investment in Saesa of US$554,831,656 all of which is equity. (xlii) Electroandes S.A. As of December 31, 2003, PSEG has an indirect capital investment in Electroandes S.A. of US$161,773,990. 61 (xliii) PSEG Poland As of December 31, 2003, PSEG has an indirect capital investment in PSEG Poland of US$9,128,000 all of which is equity. (xliv) San Marco As of December 31, 2003, PSEG has an indirect, capital investment in San Marco of US$78,731,958. (xlv) Dhofar Power As of December 31, 2003, PSEG has an indirect, capital investment in Dhofar Power of US$42,127,091. (xlvi) Dhofar Generating As of December 31, 2003, PSEG has an indirect, capital investment in Dhofar Generating of US$42,127,091. (xlvii) TAO YUAN As of December 31, 2003, PSEG has an indirect, capital investment in TAO YUAN of US$22,857,428. (xlviii) FWIL As of December 31, 2003, PSEG has an indirect, capital investment in FWIL of US$64,105. (xlix) HUANGSHI As of December 31, 2003, PSEG has an indirect, capital investment in HUANGSHI of US$33,081,353. (l) MQPCL As of December 31, 2003, PSEG has an indirect, capital investment in MQPCL of US$13,884,103. (li) SAESA As of December 31, 2003, PSEG has an indirect, capital investment in SAESA of US$554,831,656. (lii) Edelaysen Edelaysen is 91.66% owned by SAESA. PSEG has a 100% indirect interest in SAESA. As of December 31, 2003, PSEG has an indirect capital investment in SAESA of US$554,831,656 all of which is equity. 62 (d) Capitalization and earnings of the EWG or foreign utility company during the reporting period. (i) CUPPI 12/31/03 US$ ---------- Assets Current Assets 78,313 Noncurrent Assets 58,191,806 ---------- Total Assets 58,270,119 ========== Liabilities Current Liabilities 325,200 Noncurrent Liabilities -- ---------- Total Liabilities 325,200 Equity 57,944,919 ---------- Total Liabilities and Equity 58,270,119 ========== Net Income for Year-Ended 12/31/03 4,149,977 63 (ii) ZHL 12/31/03 US$ ---------- Assets Current Assets 6,017,768 Noncurrent Assets 55,278,760 ---------- Total Assets 61,296,528 ========== Liabilities Current Liabilities 20,220,064 Noncurrent Liabilities 10,494,942 ---------- Total Liabilities 30,715,006 Equity 30,581,522 ---------- Total Liabilities and Equity 61,296,528 ========== Net Income for Year-Ended 12/31/03 4,036,302 (iii) TCP 12/31/03 US$ ---------- Assets Current Assets 2,211,000 Noncurrent Assets 29,827,260 ---------- Total Assets 32,038,260 ========== Liabilities Current Liabilities 15,553,617 Noncurrent Liabilities 5,277,993 ---------- Total Liabilities 20,831,610 Equity 11,206,650 ---------- Total Liabilities and Equity 32,038,260 ========== Net Income for Year-Ended 12/31/03 629,587 64 (iv) RGE 12/31/03 US$ ----------- Assets Current Assets 141,292,292 Noncurrent Assets 739,350,518 ----------- Total Assets 880,642,810 =========== Liabilities Current Liabilities 309,883,813 Noncurrent Liabilities 157,518,843 ----------- Total Liabilities 467,402,656 Equity 413,240,154 ----------- Total Liabilities and Equity 880,642,810 =========== Net Income for Year-Ended 12/31/03 37,101,687 (v) TGM 12/31/03 US$ ---------- Assets Current Assets 3,703,542 Noncurrent Assets 12,935,096 ---------- Total Assets 16,638,638 ========== Liabilities Current Liabilities 3,251,819 Noncurrent Liabilities 149,426 ---------- Total Liabilities 3,401,245 Equity 13,237,393 ---------- Total Liabilities and Equity 16,638,638 ========== Net Income for Year-Ended 12/31/03 4,952,483 65 (vi) CAGUA 12/31/03 US$ ---------- Assets Current Assets 4,480,542 Noncurrent Assets 35,026,099 ---------- Total Assets 39,506,641 ========== Liabilities Current Liabilities 801,533 Noncurrent Liabilities 6,945,268 ---------- Total Liabilities 7,746,801 Equity 31,759,840 ---------- Total Liabilities and Equity 39,506,641 ========== Net Income for Year-Ended 12/31/03 1,437,883 (vii) MARACAY 12/31/03 US$ ---------- Assets Current Assets 6,139,115 Noncurrent Assets 33,219,258 ---------- Total Assets 39,358,373 ========== Liabilities Current Liabilities 585,986 Noncurrent Liabilities 4,450,667 ---------- Total Liabilities 5,036,653 Equity 34,321,720 ---------- Total Liabilities and Equity 39,358,373 ========== Net Income for Year-Ended 12/31/03 223,040 66 (viii) VALENCIA 12/31/03 US$ ------- Assets Current Assets 25,003 Noncurrent Assets -- ------- Total Assets 25,003 ======= Liabilities Current Liabilities 124 Noncurrent Liabilities 92,499 ------- Total Liabilities 92,623 Equity (67,620) ------- Total Liabilities and Equity 25,003 ======= Net Income for Year-Ended 12/31/03 1,030 (ix) PPN Energy 12/31/03 US$ ---------- Assets Current Assets 498,000 Noncurrent Assets 35,650,000 ---------- Total Assets 36,148,000 ========== Liabilities Current Liabilities 6,331,000 Noncurrent Liabilities -- ---------- Total Liabilities 6,331,000 Equity 29,817,000 ---------- Total Liabilities and Equity 36,148,000 ========== Net Loss for Year-Ended 12/31/03 (515,000) 67 (x) PPN Operations 12/31/03 US$ --------- Assets Current Assets 2,132,000 Noncurrent Assets -- --------- Total Assets 2,132,000 ========= Liabilities Current Liabilities 235,000 Noncurrent Liabilities 7,000 --------- Total Liabilities 242,000 Equity 1,890,000 --------- Total Liabilities and Equity 2,132,000 ========= Net Income for Year-Ended 12/31/03 -- (xi) PSEG International Ltd./CPC 12/31/03 US$ ---------- Assets Current Assets 58,278,000 Noncurrent Assets -- ----------- Total Assets 58,278,000 =========== Liabilities Current Liabilities 15,175,000 Noncurrent Liabilities 1,467,000 ----------- Total Liabilities 16,642,000 Equity 41,636,000 ----------- Total Liabilities and Equity 58,278,000 =========== Net Loss for Year-Ended 12/31/03 (1,666,000) 68 (xii) GPP 12/31/03 US$ ----------- Assets Current Assets 22,957,933 Noncurrent Assets 380,541,237 ----------- Total Assets 403,499,170 =========== Liabilities Current Liabilities 16,938,722 Noncurrent Liabilities 235,517,436 ----------- Total Liabilities 252,456,158 Equity 151,043,012 ----------- Total Liabilities and Equity 403,499,170 =========== Net Loss for Year-Ended 12/31/03 (9,572,948) 69 (xiii) OEPP 12/31/03 US$ ----------- Assets Current Assets 33,362,847 Noncurrent Assets 399,418,098 ----------- Total Assets 432,780,945 =========== Liabilities Current Liabilities 12,322,834 Noncurrent Liabilities 252,765,547 ----------- Total Liabilities 265,088,381 Equity 167,692,564 ----------- Total Liabilities and Equity 432,780,945 =========== Net Income for Year-Ended 12/31/03 4,816,145 (xiv) CHILQUINTA 12/31/03 US$ ----------- Assets Current Assets 61,814,549 Noncurrent Assets 687,320,775 ----------- Total Assets 749,135,324 =========== Liabilities Current Liabilities 71,345,592 Noncurrent Liabilities 358,838,347 ----------- Total Liabilities 430,183,939 Equity 318,951,385 ----------- Total Liabilities and Equity 749,135,324 =========== Net Income for Year-Ended 12/31/03 23,187,515 70 (xv) LUZ 12/31/03 US$ ----------- Assets Current Assets 65,722,783 Noncurrent Assets 497,056,375 ----------- Total Assets 562,779,158 =========== Liabilities Current Liabilities 60,337,452 Noncurrent Liabilities 245,578,222 ----------- Total Liabilities 305,915,674 Equity 256,863,484 ----------- Total Liabilities and Equity 562,779,158 =========== Net Income for Year-Ended 12/31/03 58,285,196 (xvi) Fossil 12/31/03 US$ ------------- Assets Current Assets 190,404,242 Noncurrent Assets 2,946,834,517 ------------- Total Assets 3,137,238,759 ============= Liabilities Current Liabilities 1,085,153,216 Noncurrent Liabilities 51,283,408 ------------- Total Liabilities 1,136,436,624 Equity 2,000,802,135 ------------- Total Liabilities and Equity 3,137,238,759 ============= Net Income for Year-Ended 12/31/03 96,176,484 71 (xvii) Nuclear 12/31/03 US$ ------------- Assets Current Assets 319,703,408 Noncurrent Assets 1,484,915,271 ------------- Total Assets 1,804,618,679 ============= Liabilities Current Liabilities 832,249,285 Noncurrent Liabilities 290,022,317 ------------- Total Liabilities 1,122,271,602 Equity 682,347,077 ------------- Total Liabilities and Equity 1,804,618,679 ============= Net Income for Year-Ended 12/31/03 308,990,348 (xviii) PSEG Chorzow B.V. 12/31/03 US$ ---------- Assets Current Assets 4,560,000 Noncurrent Assets 61,712,000 ---------- Total Assets 66,272,000 ========== Liabilities Current Liabilities 50,721,000 Noncurrent Liabilities -- ---------- Total Liabilities 50,721,000 Equity 15,551,000 ---------- Total Liabilities and Equity 66,272,000 ========== Net Loss for Year-Ended 12/31/03 (990,000) 72 (xix) PSEG Rongjiang 12/31/03 US$ ---------- Assets Current Assets 3,605,018 Noncurrent Assets 56,641,706 ---------- Total Assets 60,246,724 ========== Liabilities Current Liabilities 4,301,165 Noncurrent Liabilities 34,319,379 ---------- Total Liabilities 38,620,544 Equity 21,626,180 ---------- Total Liabilities and Equity 60,246,724 ========== Net Income for Year-Ended 12/31/03 1,692,682 (xx) KPLP 12/31/03 US$ ----------- Assets Current Assets 23,467,678 Noncurrent Assets 202,415,114 ----------- Total Assets 225,882,792 =========== Liabilities Current Liabilities 14,042,618 Noncurrent Liabilities 152,978,282 ----------- Total Liabilities 167,020,900 Equity 58,861,892 ----------- Total Liabilities and Equity 225,882,792 =========== Net Income for Year-Ended 12/31/03 10,692,279 73 (xxi) Meiya Electric Asia, Ltd. 12/31/03 US$ ---------- Assets Current Assets 8,159,582 Noncurrent Assets 22,215,943 ---------- Total Assets 30,375,525 ========== Liabilities Current Liabilities 18,568,865 Noncurrent Liabilities 1,421,649 ---------- Total Liabilities 19,990,514 Equity 10,385,011 ---------- Total Liabilities and Equity 30,375,525 ========== Net Income for Year-Ended 12/31/03 8,314,202 (xxii) SWGEC 12/31/03 US$ ------- Assets Current Assets 140,548 Noncurrent Assets 311,252 ------- Total Assets 451,800 ======= Liabilities Current Liabilities 52,986 Noncurrent Liabilities 100,000 ------- Total Liabilities 152,986 Equity 298,814 ------- Total Liabilities and Equity 451,800 ======= Net Income for Year-Ended 12/31/03 64,857 74 (xxiii) Power New York 12/31/03 US$ ----------- Assets Current Assets 6,248,010 Noncurrent Assets 385,898,390 ----------- Total Assets 392,146,400 =========== Liabilities Current Liabilities 126,633,245 Noncurrent Liabilities 153,283,818 ----------- Total Liabilities 279,917,063 Equity 112,229,337 ----------- Total Liabilities and Equity 392,146,400 =========== Net Loss for Year-Ended 12/31/03 (292,871) (xxiv) GWF Energy LLC 12/31/03 US$ ----------- Assets Current Assets 42,757,473 Noncurrent Assets 308,167,299 ----------- Total Assets 350,924,772 =========== Liabilities Current Liabilities 39,724,945 Noncurrent Liabilities 199,375,804 ----------- Total Liabilities 239,100,749 Equity 11,824,023 ----------- Total Liabilities and Equity 350,924,772 =========== Net Income for Year-Ended 12/31/03 37,552,060 75 (xxv) Biomasse Italia S.p.A. 12/31/03 US$ ----------- Assets Current Assets 51,371,182 Noncurrent Assets 189,156,278 ----------- Total Assets 240,527,460 =========== Liabilities Current Liabilities 30,118,920 Noncurrent Liabilities 177,599,018 ----------- Total Liabilities 207,717,938 Equity 32,809,522 ----------- Total Liabilities and Equity 240,527,460 =========== Net Income for Year-Ended 12/31/03 1,809,064 (xxvi) TIE 12/31/03 US$ --------- Assets Current Assets 1,978,462 Noncurrent Assets -- --------- Total Assets 1,978,462 ========= Liabilities Current Liabilities 910,083 Noncurrent Liabilities -- --------- Total Liabilities 910,083 Equity 1,068,379 --------- Total Liabilities and Equity 1,978,462 ========= Net Income for Year-Ended 12/31/03 5,776 76 (xxvii) Danskammer OP 12/31/03 US$ ---------- Assets Current Assets -- Noncurrent Assets 59,468,644 ---------- Total Assets 59,468,644 ========== Liabilities Current Liabilities 100 Noncurrent Liabilities -- ---------- Total Liabilities 100 Equity 59,468,544 ---------- Total Liabilities and Equity 59,468,644 ========== Net Income for Year-Ended 12/31/03 3,199,540 (xxviii) Danskammer OL 12/31/03 US$ ---------- Assets Current Assets 5,241,381 Noncurrent Assets 62,178,853 ---------- Total Assets 67,420,234 ========== Liabilities Current Liabilities -- Noncurrent Liabilities 7,951,590 ---------- Total Liabilities 7,951,590 Equity 59,468,644 ---------- Total Liabilities and Equity 67,420,234 ========== Net Income for Year-Ended 12/31/03 3,199,540 77 (xxix) Roseton OP 12/31/03 US$ ----------- Assets Current Assets -- Noncurrent Assets 122,720,754 ----------- Total Assets 122,720,754 =========== Liabilities Current Liabilities 100 Noncurrent Liabilities -- ----------- Total Liabilities 100 Equity 122,720,654 ----------- Total Liabilities and Equity 122,720,754 =========== Net Income for Year-Ended 12/31/03 6,515,207 (xxx) Roseton OL 12/31/03 US$ ----------- Assets Current Assets 11,689,078 Noncurrent Assets 128,221,804 ----------- Total Assets 139,910,882 =========== Liabilities Current Liabilities -- Noncurrent Liabilities 17,190,128 ----------- Total Liabilities 17,190,128 Equity 122,720,754 ----------- Total Liabilities and Equity 139,910,882 =========== Net Income for Year-Ended 12/31/03 6,515,207 78 (xxxi) Conemaugh Lessor 12/31/03 US$ ---------- Assets Current Assets -- Noncurrent Assets 79,112,815 ---------- Total Assets 79,112,815 ========== Liabilities Current Liabilities 69,173,272 Noncurrent Liabilities -- ---------- Total Liabilities 69,173,272 Equity 9,939,543 ---------- Total Liabilities and Equity 79,112,815 ========== Net Income for Year-Ended 12/31/03 957,590 (xxxii) Keystone Lessor 12/31/03 US$ ---------- Assets Current Assets -- Noncurrent Assets 78,818,318 ---------- Total Assets 78,818,318 ========== Liabilities Current Liabilities 68,933,018 Noncurrent Liabilities -- ---------- Total Liabilities 68,933,018 Equity 9,885,300 ---------- Total Liabilities and Equity 78,818,318 ========== Net Income for Year-Ended 12/31/03 934,457 79 (xxxiii) Shawville Lessor 12/31/03 US$ ---------- Assets Current Assets 2,093,129 Noncurrent Assets 80,879,188 ---------- Total Assets 82,972,317 ========== Liabilities Current Liabilities 74,599,908 Noncurrent Liabilities -- ---------- Total Liabilities 74,599,908 Equity 8,372,409 ---------- Total Liabilities and Equity 82,972,317 ========== Net Loss for Year-Ended 12/31/03 (7,240) 80 (xxxiv) PSEG Lawrenceburg Energy Company LLC 12/31/03 US$ ----------- Assets Current Assets 26,775,970 Noncurrent Assets 672,083,989 ----------- Total Assets 698,859,959 =========== Liabilities Current Liabilities 17,742,995 Noncurrent Liabilities 445,000,000 ----------- Total Liabilities 462,742,995 Equity 236,116,964 ----------- Total Liabilities and Equity 698,859,959 =========== Net Loss for Year-Ended 12/31/03 (376,073) (xxxv) PSEG Waterford Energy LLC 12/31/03 US$ ----------- Assets Current Assets 22,392,722 Noncurrent Assets 510,788,827 ----------- Total Assets 533,181,549 =========== Liabilities Current Liabilities -- Noncurrent Liabilities 355,000,000 ----------- Total Liabilities 355,000,000 Equity 178,181,549 ----------- Total Liabilities and Equity 533,181,549 =========== Net Loss for Year-Ended 12/31/03 (8,564,253) 81 (xxxvi) Frontel 12/31/03 US$ ----------- Assets Current Assets 25,949,579 Noncurrent Assets 145,052,701 ----------- Total Assets 171,002,280 =========== Liabilities Current Liabilities 17,631,184 Noncurrent Liabilities 72,417,998 ----------- Total Liabilities 90,049,182 Equity 80,953,098 ----------- Total Liabilities and Equity 171,002,280 =========== Net Income for Year-Ended 12/31/03 4,915,524 82 (xxxvii) Creo 12/31/03 US$ ---------- Assets Current Assets 2,977,890 Noncurrent Assets 13,628,375 ---------- Total Assets 16,606,265 ========== Liabilities Current Liabilities 827,871 Noncurrent Liabilities 2,372,032 ---------- Total Liabilities 3,199,903 Equity 13,406,362 ---------- Total Liabilities and Equity 16,606,265 ========== Net Income for Year-Ended 12/31/03 1,251,793 (xxxviii) STS 12/31/03 US$ ---------- Assets Current Assets 12,479,962 Noncurrent Assets 38,431,227 ---------- Total Assets 50,911,189 ========== Liabilities Current Liabilities 11,904,050 Noncurrent Liabilities 1,131,832 ---------- Total Liabilities 13,035,882 Equity 37,875,307 ---------- Total Liabilities and Equity 50,911,189 ========== Net Income for Year-Ended 12/31/03 7,937,457 83 (xxxix) Power Midwest 12/31/03 US$ -------- Assets Current Assets 32,298 Noncurrent Assets 24,444 -------- Total Assets 56,742 ======== Liabilities Current Liabilities 993,752 Noncurrent Liabilities -- -------- Total Liabilities 993,752 Equity (937,010) -------- Total Liabilities and Equity 56,742 ======== Net Loss for Year-Ended 12/31/03 (474,533) (xl) Power Connecticut 12/31/03 US$ ----------- Assets Current Assets 72,406,021 Noncurrent Assets 224,410,755 ----------- Total Assets 296,816,776 =========== Liabilities Current Liabilities -- Noncurrent Liabilities 157,444,645 ----------- Total Liabilities 157,444,645 Equity 139,372,131 ----------- Total Liabilities and Equity 296,816,776 =========== Net Income for Year-Ended 12/31/03 26,931,281 84 (xli) Edersa 12/31/03 US$ ------- Assets Current Assets 5,573 Noncurrent Assets 114,603 ------- Total Assets 120,176 ======= Liabilities Current Liabilities 77,483 Noncurrent Liabilities 362 ------- Total Liabilities 77,845 Equity 42,331 ------- Total Liabilities and Equity 120,176 ======= Net Loss for Year-Ended 12/31/03 (2,480) (xlii) Electroandes S.A. 12/31/03 US$ ----------- Assets Current Assets 20,660,889 Noncurrent Assets 270,565,314 ----------- Total Assets 291,226,203 =========== Liabilities Current Liabilities 9,791,344 Noncurrent Liabilities 119,651,696 ----------- Total Liabilities 129,443,040 Equity 161,783,163 ----------- Total Liabilities and Equity 291,226,203 =========== Net Income for Year-Ended 12/31/03 14,254,505 85 (xliii) PSEG Poland 12/31/03 US$ ---------- Assets Current Assets 320,000 Noncurrent Assets 44,334,000 ---------- Total Assets 44,654,000 ========== Liabilities Current Liabilities 35,526,000 Noncurrent Liabilities -- ---------- Total Liabilities 35,526,000 Equity 9,128,000 ---------- Total Liabilities and Equity 44,654,000 ========== Net Income for Year-Ended 12/31/03 5,674,000 (xliv) San Marco 12/31/03 US$ ---------- Assets Current Assets 10,504,061 Noncurrent Assets 39,598,173 ---------- Total Assets 50,102,234 ========== Liabilities Current Liabilities 12,716,783 Noncurrent Liabilities 38,898,823 ---------- Total Liabilities 51,615,606 Equity (1,513,372) ---------- Total Liabilities and Equity 50,102,234 ========== Net Loss for Year-Ended 12/31/03 (4,040,393) 86 (xlv) Dhofar Power (xlvi) Dhofar Generating* 12/31/03 US$ ----------- Assets Current Assets 66,370,261 Noncurrent Assets 207,186,777 ----------- Total Assets 273,557,038 =========== Liabilities Current Liabilities 26,822,098 Noncurrent Liabilities 220,802,226 ----------- Total Liabilities 247,624,324 Equity 25,932,714 ----------- Total Liabilities and Equity 273,557,038 =========== Net Income for Year-Ended 12/31/03 2,729,470 * Information in the above table represents aggregate amounts for Dhofar Power and Dhofar Generating. 87 (xlvii) TAO YUAN 12/31/03 US$ ---------- Assets Current Assets -- Noncurrent Assets 40,886,172 ---------- Total Assets 40,886,172 ========== Liabilities Current Liabilities 4,234,371 Noncurrent Liabilities -- ---------- Total Liabilities 4,234,371 Equity 36,651,801 ---------- Total Liabilities and Equity 40,886,172 ========== Net Loss for Year-Ended 12/31/03 (163,221) (xlviii) FWIL 12/31/03 US$ ------- Assets Current Assets 763 Noncurrent Assets 127,447 ------- Total Assets 128,210 ======= Liabilities Current Liabilities -- Noncurrent Liabilities -- ------- Total Liabilities -- Equity 128,210 ------- Total Liabilities and Equity 128,210 ======= Net Income for Year-Ended 12/31/03 -- 88 (xlix) HUANGSHI 12/31/03 US$ ---------- Assets Current Assets 1,023,263 Noncurrent Assets 64,974,030 ---------- Total Assets 65,997,293 ========== Liabilities Current Liabilities 9,605,734 Noncurrent Liabilities -- ---------- Total Liabilities 9,605,734 Equity 56,391,559 ---------- Total Liabilities and Equity 65,997,293 ========== Net Income for Year-Ended 12/31/03 308,127 (l) MQPCL 12/31/03 US$ ---------- Assets Current Assets 1,111,068 Noncurrent Assets 38,253,502 ---------- Total Assets 39,364,570 ========== Liabilities Current Liabilities -- Noncurrent Liabilities 11,596,365 ---------- Total Liabilities 11,596,365 Equity 27,768,205 ---------- Total Liabilities and Equity 39,364,570 ========== Net Income for Year-Ended 12/31/03 837,263 89 (li) SAESA 12/31/03 US$ ----------- Assets Current Assets 63,769,083 Noncurrent Assets 549,838,685 ----------- Total Assets 613,607,768 =========== Liabilities Current Liabilities 67,011,260 Noncurrent Liabilities 250,460,804 ----------- Total Liabilities 317,472,064 Equity 296,135,704 ----------- Total Liabilities and Equity 613,607,768 =========== Net Income for Year-Ended 12/31/03 16,717,889 (lii) Edelaysen 12/31/03 US$ ---------- Assets Current Assets 9,307,285 Noncurrent Assets 53,937,108 ---------- Total Assets 63,244,393 ========== Liabilities Current Liabilities 20,460,578 Noncurrent Liabilities 778,696 ---------- Total Liabilities 21,239,274 Equity 42,005,119 ---------- Total Liabilities and Equity 63,244,393 ========== Net Income for Year-Ended 12/31/03 4,439,383 90 (e) Identify any service, sales or construction contract(s) between the EWG or foreign utility company and a system company, and describe the services to be rendered or goods sold and fees or revenues under such agreement(s). (i) CUPPI None. (ii) ZHL Yaneng Consulting (Shanghai) Co. Ltd. entered into a service contract with Guangxi Zoujiang Meiya Hydropower Co., Ltd. (GZMHCL), a subsidiary of ZHL, to provide GZMHCL power plant related technological and management services. (iii) TCP Yaneng Consulting (Shanghai) Co. Ltd. entered into a service contract with Tongzhou Meiya Cogeneration Co., Ltd. (TMCC), a subsidiary of TCP, to provide TCP project management consulting services. (iv) RGE RGE has an Operators Agreement with IPE under which IPE provides certain support services to RGE in connection with electricity distribution. (v) TGM None. (vi) CAGUA None. (vii) MARACAY None. (viii) VALENCIA None. (ix) PPN Energy None. 91 (x) PPN Operations PPN Operations has an Operation and Maintenance Agreement with PPN PGC to provide certain services in connection with mobilization, operation and maintenance of 330 MW combined cycle electric power generating facility of PPN PGC located in Pillaiperumalnallur in the state of Tamilnadu, India. Under said agreement, PPN Operations will receive a fee equal to fifteen percent (15%) of the nonfuel and insurance related operating expenses of the said facility. (xi) PSEG International Ltd./CPC None. (xii) GPP GPP has an Operation and Maintenance Agreement with TIE pursuant to which TIE provides operation and maintenance services at GPP's electric generation facility in Guadalupe County, Texas. GPP also has a Fuel Management Agreement with TIELP pursuant to which TIELP administers GPP's gas transportation and gas supply agreements and provides other fuel management services to GPP. (xiii) OEPP OEPP has an Operation and Maintenance Agreement with TIE pursuant to which TIE provides operation and maintenance services at OEPP's electric generation facility in Odessa, Texas. OEPP also has a Fuel Management Agreement with TIELP pursuant to which TIELP administers OEPP's gas transportation and gas supply agreements and provides other fuel management services to OEPP. Lastly, OEPP has affiliate gas services agreements with OEPPS, including (a) an Operation and Maintenance Agreement pursuant to which OEPPS or its subcontractors provide operation and maintenance services relative to OEPP's natural gas pipeline, natural gas compression station and related facilities which extend from three natural gas pipelines owned by unrelated parties to OEPP's electric generation facility in Odessa, Texas, (b) a Transportation Service Agreement pursuant to which OEPPS provides certain gas transportation services to OEPP and (c) and Assignment and Assumption Agreement pursuant to which OEPP assigned certain right-of-way easements for pipeline and equipment to OEPPS in return 92 for OEPPS agreeing to transport natural gas in such pipeline on behalf of OEPP at no cost to OEPP. (xiv) CHILQUINTA None. (xv) LUZ None. (xvi) Fossil Fossil has a Power Sale Agreement with ER&T to provide all energy, capacity, and ancillary services to ER&T. (xvii) Nuclear Nuclear has a Power Sale Agreement with ER&T to provide all energy, capacity, and ancillary services to ER&T. (xviii) PSEG Chorzow B.V. None. (xix) PSEG Rongjiang Yaneng Consulting (Shanghai) Co. Ltd. entered into a service contract with GRMHCL, a subsidiary of Rongjiang, to provide GRMCL power plant with related technological services. (xx) KPLP None. (xxi) Meiya Electric Asia, Ltd. Yaneng Consulting (Shanghai) Co. Ltd. entered into a service contract with NANTONG, a subsidiary of Meiya Electric Asia, Ltd., to provide NANTONG power-related, technological, consulting services and project-management services. (xxii) SWGEC None. (xxiii) Power New York Power New York has an Agreement with ER&T to provide all energy, capacity, and ancillary services to ER&T. 93 (xxiv) GWF Energy LLC GWF Energy LLC has an Operation and Maintenance Agreement with GWFLP and HLP pursuant to which GWFLP and HLP provide operation and maintenance services in respect of GWF Energy LLC's three natural gas-fired peaker facilities in California. GWF Energy LLC also has a Management Services Agreement with GWFLP pursuant to which GWFLP provides management, administrative and general services with respect to GWF Energy LLC's three natural gas-fired peaker facilities in California. In addition, GWF Energy LLC has a Shared Facilities Agreement with HLP under which HLP shares certain of its facilities and systems with, and provides certain water services to, GWF Energy LLC's natural gas-fired peaker facility located adjacent to HLP's petroleum coke-fired small power production QF in Hanford, California. (xxv) Biomasse Italia S.p.A. None. (xxvi) TIE TIEOC has Operation and Maintenance Agreements with each of (a) GPP pursuant to which TIE provides operation and maintenance services at GPP's electric generation facility in Guadalupe County, Texas and (b) OEPP pursuant to which TIE provides operation and maintenance services at OEPP's electric generation facility in Odessa, Texas. (xxvii) Danskammer OP None. (xxviii) Danskammer OL None. (xxix) Roseton OP None. (xxx) Roseton OL None. (xxxi) Conemaugh Lessor None. (xxxii) Keystone Lessor None. 94 (xxxiii) Shawville Lessor None. (xxxiv) PSEG Lawrenceburg ER&T has entered into a tolling agreement pursuant to which it is obligated to purchase the output of this facility at stated prices. As a result, ER&T will bear the price risk related to the output of this generation facility, which is scheduled to be completed in 2004. (xxxv) PSEG Waterford ER&T has entered into a tolling agreement pursuant to which it is obligated to purchase the output of this facility at stated prices. As a result, ER&T will bear the price risk related to the output of this generation facility, which was placed in service in August 2003. (xxxvi) Frontel None. 95 (xxxvii) Creo None. (xxxviii) STS None. (xxxix) Power Midwest None. (xl) Power Connecticut Power Connecticut has entered into a Power Purchase Agreement with ER&T dated February 2, 2004. (xli) Edersa Edersa had a service contract with PSEG Americas Services Inc. for the provision of technical services at a fee of $200,000 per year. This contract was terminated in 2003. (xlii) Electroandes S.A. None. (xliii) PSEG Poland None. (xliv) San Marco None. (xlv) Dhofar Power None. (xlvi) Dhofar Generating None. (xlvii) TAO YUAN None. (xlviii) FWIL None. (xlix) HUANGSHI None. (l) MQPCL None. (li) SAESA None. 96 EXHIBIT A A consolidating statement of income and surplus of claimant and its direct or indirect affiliated subsidiary companies for the last calendar year, together with a consolidating balance sheet of claimant and its subsidiary companies as of the close of such calendar year. Exhibit A includes all required consolidating financial statements, as described above, to be filed with this report and are attached hereto. Subsidiaries described under Item 1 above include all PSEG's direct and indirect subsidiaries. Direct and indirect subsidiaries of PSEG that exceeded 2% of PSEG's consolidated assets or consolidated revenues are PSE&G, Power, Fossil, Nuclear, ER&T, Energy Holdings, PSEG Resources, PSRC, RCMC, Global, Global USA, PSEG International, PSEG Americas Inc., PSEG Americas Ltd., Inversiones America Chile Holding, PSEG Europe (Delaware) LLC, PSEG Europe B.V. and PSEG Global Holding Co. and are included in Exhibit A and cross-referenced for additional information to Item I. EXHIBIT B An organizational chart showing the relationship of each EWG or foreign utility company to the associate companies in the holding-company system. See attached Exhibit B. 97 The above-named Claimant (PSEG) has caused this statement to be duly executed on its behalf by its authorized officer on this 27th day of February 2004. Public Service Enterprise Group Incorporated (Name of Claimant) By: /s/ Patricia A. Rado -------------------------------- Patricia A. Rado Vice President and Controller (Principal Accounting Officer) (CORPORATE SEAL) Attest: E. J. BIGGINS, JR. ----------------------------------------- E. J. Biggins, Jr. Corporate Secretary Name, title, and address of officer to whom notices and correspondence concerning this statement should be addressed: James T. Foran Associate General Counsel (Name) (Title) 80 Park Plaza, T-5B, P. O. Box 1171, Newark, New Jersey 07101-1171 (Address) 98 PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED CONSOLIDATING STATEMENT OF OPERATIONS For The Year Ended December 31, 2003 (Millions, except for Per Share Data) INTERCOMPANY PSEG PSEG ELIMINATIONS PSE&G & POWER & CONSOL. & RECLASS. SUBS. (A) SUBS. (A) -------- ------------ --------- --------- OPERATING REVENUES $ 11,116 $(1,954) $6,740 $5,605 OPERATING EXPENSES Energy Costs 6,368 (1,954) 4,421 3,746 Operation and Maintenance 2,120 -- 1,050 914 Depreciation and Amortization 527 -- 372 102 Taxes Other Than Income Taxes 136 -- 136 -- -------- ------- ------ ------ Total Operating Expenses 9,151 (1,954) 5,979 4,762 -------- ------- ------ ------ Income from Equity Method Investments 114 -- -- -- -------- ------- ------ ------ OPERATING INCOME 2,079 -- 761 843 Other Income 178 (15) 6 149 Other Deductions (101) -- (1) (78) Equity in Earnings of Subsidiaries -- (1,216) -- -- Interest Expense (836) 15 (390) (114) Preferred Stock Dividends (4) -- -- -- -------- ------- ------ ------ INCOME FROM CONTINUING OPERATIONS 1,316 (1,216) 376 800 Income Tax Expense (464) -- (129) (326) -------- ------- ------ ------ INCOME FROM CONTINUING OPERATIONS 852 (1,216) 247 474 Loss from Discontinued Operations, net of tax (including Loss on Disposal, net of tax) (44) -- -- -- -------- ------- ------ ------ INCOME BEFORE EXTRAORDINARY ITEM AND CUMULATIVE EFFECT OF A CHANGE IN ACCOUNTING PRINCIPLE 808 (1,216) 247 474 Extraordinary Item, net of tax (18) -- (18) -- Cumulative Effect of a Change in Accounting Principle, net of tax 370 -- -- 370 -------- ------- ------ ------ NET INCOME $ 1,160 $(1,216) $ 229 $ 844 ======== ======= ====== ====== WEIGHTED AVERAGE COMMON SHARES OUTSTANDING (000) BASIC 228,222 ======== DILUTED 228,824 ======== EARNINGS PER SHARE: BASIC Income from Continuing Operations $ 3.73 ======== Net income $ 5.08 ======== DILUTED Income from Continuing Operations $ 3.72 ======== Net Income $ 5.07 ======== DIVIDENDS PAID PER SHARE OF COMMON STOCK $ 2.16 ======== ENERGY PSEG HOLDINGS & SERVICES SUBS. (A) PSEG -------- ---------- ----- OPERATING REVENUES $ -- $ 725 $ -- OPERATING EXPENSES Energy Costs -- 155 -- Operation and Maintenance (19) 176 (1) Depreciation and Amortization 6 44 3 Taxes Other Than Income Taxes -- -- -- ---- ----- ---- Total Operating Expenses (13) 375 2 ---- ----- ---- Income from Equity Method Investments -- 114 -- ---- ----- ---- OPERATING INCOME 13 464 (2) Other Income 1 20 17 Other Deductions -- (18) (4) Equity in Earnings of Subsidiaries -- -- 1,216 Interest Expense (14) (218) (115) Preferred Stock Dividends -- -- (4) ---- ----- ---- INCOME FROM CONTINUING OPERATIONS -- 248 1,108 Income Tax Expense (2) (59) 52 ---- ----- ---- INCOME FROM CONTINUING OPERATIONS (2) 189 1,160 Loss from Discontinued Operations, net of tax (including Loss on Disposal, net of tax) -- (44) -- ---- ----- ---- INCOME BEFORE EXTRAORDINARY ITEM AND CUMULATIVE EFFECT OF A CHANGE IN ACCOUNTING PRINCIPLE (2) 145 1,160 Extraordinary Item, net of tax -- -- -- Cumulative Effect of a Change in Accounting Principle, net of tax -- -- -- ---- ----- ---- NET INCOME $ (2) $ 145 $1,160 ==== ===== ==== WEIGHTED AVERAGE COMMON SHARES OUTSTANDING (000) EARNINGS PER SHARE (NET INCOME): BASIC DILUTED DIVIDENDS PAID PER SHARE OF COMMON STOCK (A) Exceeds 2% of Enterprise's consolidated operating revenues. For additional information, see Item I. PSEG - Public Service Enterprise Group Incorporated PSE&G - Public Service Electric and Gas Company PSEG Power - PSEG Power LLC PSEG Services - PSEG Services Corporation Energy Holdings - PSEG Energy Holdings LLC PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED CONSOLIDATING STATEMENT OF RETAINED EARNINGS For The Year Ended December 31, 2003 (Millions) INTERCOMPANY PSEG ENERGY PSEG ELIMINATIONS PSE&G & POWER & PSEG HOLDINGS & CONSOL. & RECLASS. SUBS. SUBS. SERVICES SUBS. (A) PSEG --------- ------------ ------- ------- -------- ---------- ------ BALANCE JANUARY 1, 2003 $1,554 $(1,411) $ 389 $ 966 $ -- $ 56 $1,554 Net Income 1,160 (1,216) 229 844 (2) 145 1,160 ------ ------- ----- ------ --- ---- ------ Subtotal 2,714 (2,627) 618 1,810 (2) 201 2,714 ------ ------- ----- ------ --- ---- ------ Cash Dividends: Preferred Stock, at required rates -- 27 (4) -- -- (23) -- Common Stock (493) 200 (200) -- -- -- (493) ------ ------- ----- ------ --- ---- ------ Total Cash Dividends (493) 227 (204) -- -- (23) (493) ------ ------- ----- ------ --- ---- ------ Other Deductions -- -- -- -- -- -- -- ------ ------- ----- ------ --- ---- ------ BALANCE DECEMBER 31, 2003 $2,221 $(2,400) $ 414 $1,810 $(2) $178 $2,221 ====== ======= ===== ====== === ==== ====== PSEG - Public Service Enterprise Group Incorporated PSE&G - Public Service Electric and Gas Company PSEG Power - PSEG Power LLC Energy Holdings - PSEG Energy Holdings LLC PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED CONSOLIDATING BALANCE SHEET As of December 31, 2003 (Millions) INTERCOMPANY PSEG ENERGY PSEG ELIMINATIONS PSE&G & POWER & PSEG HOLDINGS & CONSOL. & RECLASS. SUBS. SUBS. SERVICES SUBS. PSEG ------- ------------ ------- ------- -------- ---------- ------ CURRENT ASSETS Cash and Cash Equivalents $ 548 $ -- $ 140 $ 66 $ 2 $ 161 $ 179 Accounts Receivable 1,547 -- 804 615 1 122 5 Accounts Receivable - Affiliated Companies, net -- (495) -- 240 82 173 -- Short-Term Loan to Affiliate -- (377) -- 77 -- 300 -- Unbilled Revenues 261 -- 261 -- -- -- -- Fuel 527 -- -- 516 -- 11 -- Materials and Supplies 227 -- 50 162 -- 15 -- Prepayments 164 -- 44 12 3 7 98 Energy Trading Contracts 101 -- -- 101 -- -- -- Restricted Cash 5 -- 5 -- -- -- -- Assets Held for Sale -- -- -- -- -- -- -- Assets of Discontinued Operations 298 -- -- -- -- 298 -- Other 39 -- 17 20 -- 2 -- ------- ------- ------- ------- ----- ------ ------ Total Current Assets 3,717 (872) 1,321 1,809 88 1,089 282 ------- ------- ------- ------- ----- ------ ------ PROPERTY, PLANT AND EQUIPMENT 17,406 -- 9,793 5,980 271 1,362 -- Less: Accumulated Depreciation and Amortization (4,984) -- (3,258) (1,399) (143) (184) -- ------- ------- ------- ------- ----- ------ ------ Net Property, Plant and Equipment 12,422 -- 6,535 4,581 128 1,178 -- ------- ------- ------- ------- ----- ------ ------ NONCURRENT ASSETS Regulatory Assets 4,801 -- 4,801 -- -- -- -- Long-Term Investments 4,808 -- 131 43 2 4,583 49 Investment in Subsidiaries -- (7,365) -- -- -- -- 7,365 Deferred Income Taxes and Investment Tax Credits (ITC) -- (24) -- 24 -- -- -- Nuclear Decommissioning Trust Funds 985 -- -- 985 -- -- -- Other Special Funds 470 -- 272 115 67 16 -- Goodwill 507 -- -- 16 -- 491 -- Energy Trading Contracts 12 -- -- 12 -- -- -- Other Intangibles 103 -- 2 92 5 4 -- Other 230 -- 74 51 -- 96 9 ------- ------- ------- ------- ----- ------ ------ Total Noncurrent Assets 11,916 (7,389) 5,280 1,338 74 5,190 7,423 ------- ------- ------- ------- ----- ------ ------ TOTAL ASSETS $28,055 $(8,261) $13,136 $ 7,728 $ 290 $7,457 $7,705 ======= ======= ======= ======= ===== ====== ====== PSEG - Public Service Enterprise Group Incorporated PSE&G - Public Service Electric and Gas Company PSEG Power - PSEG Power LLC PSEG Services - PSEG Services Corporation Energy Holdings - PSEG Energy Holdings LLC PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED CONSOLIDATING BALANCE SHEET As of December 31, 2003 (Millions) INTERCOMPANY PSEG ENERGY PSEG ELIMINATIONS PSE&G & POWER & PSEG HOLDINGS & CONSOL. & RECLASS. SUBS. SUBS. SERVICES SUBS. PSEG -------- ------------ ------- ------- -------- ---------- ------ CURRENT LIABILITIES Long-Term Debt Due Within One Year $ 726 $ -- $ 423 $ -- $ -- $ 303 $ -- Commercial Paper and Loans 301 -- -- -- -- 2 299 Accounts Payable 1,216 -- 286 800 61 53 16 Accounts Payable - Affiliated Companies, net -- (494) 405 -- -- 4 85 Short-Term Loan from Affiliate -- (377) -- -- 124 -- 253 Energy Trading Contracts 72 -- -- 72 -- -- -- Accrued Taxes 33 -- 10 15 -- 8 -- Liabilities of Discontinued Operations 242 -- -- -- -- 242 -- Other 795 1 422 192 13 116 51 ------- ------- ------- ------ ---- ------ ------ Total Current Liabilities 3,385 (870) 1,546 1,079 198 728 704 ------- ------- ------- ------ ---- ------ ------ NONCURRENT LIABILITIES Deferred Income Taxes and Investment Tax Credits (ITC) 4,196 (24) 2,715 -- 26 1,487 (8) Regulatory Liabilities 536 -- 536 -- -- -- -- Nuclear Decommissioning Liabilities 284 -- -- 284 -- -- -- Other Postemployment Benefit (OPEB) Costs 532 -- 509 16 4 3 -- Accrued Pension Costs 67 -- 16 14 25 12 -- Other 501 (1) 145 114 40 185 18 ------- ------- ------- ------ ---- ------ ------ Total Noncurrent Liabilities 6,116 (25) 3,921 428 95 1,687 10 ------- ------- ------- ------ ---- ------ ------ COMMITMENTS AND CONTINGENT LIABILITIES -- -- -- -- -- -- -- ------- ------- ------- ------ ---- ------ ------ CAPITALIZATION LONG-TERM DEBT Long-Term Debt 7,921 -- 1,843 2,816 -- 1,800 1,462 Securitization Debt 2,085 -- 2,085 -- -- -- -- Project Level, Non-Recourse Debt 1,738 -- -- 800 -- 938 -- Debt Supporting Trust Preferred Securities 1,201 -- 1,201 -- -- -- -- ------- ------- ------- ------ ---- ------ ------ Total Long-Term Debt 12,945 -- 5,129 3,616 -- 2,738 1,462 ------- ------- ------- ------ ---- ------ ------ SUBSIDIARIES' PREFERRED SECURITIES Preferred Stock Without Mandatory Redemption 80 (509) 80 -- -- 509 -- ------- ------- ------- ------ ---- ------ ------ COMMON STOCKHOLDERS' EQUITY Common Stock, issued; 2003 - 262,252,032 shares 2002 - 251,385,937 shares 4,490 (892) 892 -- -- -- 4,490 Contributed Capital -- (3,760) 170 1,700 2 1,888 -- Basis Adjustment -- -- 986 (986) -- -- -- Treasury Stock, at cost; 2003 and 2002 - 26,118,590 shares (981) -- -- -- -- -- (981) Retained Earnings 2,221 (2,400) 414 1,810 (2) 178 2,221 Accumulated Other Comprehensive Income (Loss) (201) 195 (2) 81 (3) (271) (201) ------- ------- ------- ------ ---- ------ ------ Total Common Stockholders' Equity 5,529 (6,857) 2,460 2,605 (3) 1,795 5,529 ------- ------- ------- ------ ---- ------ ------ Total Capitalization 18,554 (7,366) 7,669 6,221 (3) 5,042 6,991 ------- ------- ------- ------ ---- ------ ------ TOTAL LIABILITIES AND CAPITALIZATION $28,055 $(8,261) $13,136 $7,728 $290 $7,457 $7,705 ======= ======= ======= ====== ==== ====== ====== PSEG - Public Service Enterprise Group Incorporated PSE&G - Public Service Electric and Gas Company PSEG Power - PSEG Power LLC PSEG Services - PSEG Services Corporation Energy Holdings - PSEG Energy Holdings LLC PUBLIC SERVICE ELECTRIC AND GAS COMPANY CONSOLIDATING STATEMENT OF OPERATIONS For The Year Ended December 31, 2003 (Millions) PSE&G INTERCOMPANY TRANSITION PSE&G ELIMINATIONS FUNDING NEW CONSOL. (A) & RECLASS. PSE&G LLC MILLENNIUM NJP ----------- ------------ ------- ---------- ---------- --- OPERATING REVENUES $6,740 $(180) $6,628 $ 292 $-- $-- OPERATING EXPENSES Energy Costs 4,421 (178) 4,599 -- -- -- Operation and Maintenance 1,050 (2) 1,050 2 -- -- Depreciation and Amortization 372 -- 248 124 -- -- Taxes Other Than Income Taxes 136 -- 136 -- -- -- ------ ----- ------ ----- --- --- Total Operating Expenses 5,979 (180) 6,033 126 -- -- ------ ----- ------ ----- --- --- OPERATING INCOME 761 -- 595 166 -- -- Other Income 6 (7) 12 1 -- -- Other Deductions (1) -- (1) -- -- -- Equity in Earnings of Subsidiaries -- (1) 1 -- -- -- Interest Expense (390) 7 (231) (166) -- -- ------ ----- ------ ----- --- --- INCOME BEFORE INCOME TAXES AND EXTRAORDINARY ITEM 376 (1) 376 1 -- -- Income Taxes (129) -- (129) -- -- -- ------ ----- ------ ----- --- --- INCOME BEFORE EXTRAORDINARY ITEM 247 (1) 247 1 -- -- Extraordinary Item, net of tax (18) -- (18) -- -- -- ------ ----- ------ ----- --- --- NET INCOME $ 229 $ (1) $ 229 $ 1 $-- $-- Preferred Stock Dividends (4) -- (4) -- -- -- ------ ----- ------ ----- --- --- Earnings Available to PSEG $ 225 $ (1) $ 225 $ 1 $-- $-- ====== ===== ====== ===== === === (A) Exceeds 2% of Enterprise's consolidated operating revenues. For additional information, see Item I. PSE&G - Public Service Electric and Gas Company TRANSITION FUNDING - PSE&G Transition Funding LLC NEW MILLENNIUM - Public Service New Millennium Economic Development Fund LLC NJP - New Jersey Properties, Inc. PUBLIC SERVICE ELECTRIC AND GAS COMPANY CONSOLIDATING STATEMENT OF RETAINED EARNINGS For The Year Ended December 31, 2003 (Millions) PSE&G INTERCOMPANY TRANSITION PSE&G ELIMINATIONS FUNDING NEW CONSOL. & RECLASS. PSE&G LLC MILLENNIUM NJP ------- ------------ ----- ---------- ---------- --- BALANCE JANUARY 1, 2003 $ 389 $-- $ 389 $-- $-- $-- Net Income 229 (1) 229 1 -- -- ----- --- ----- --- --- --- Subtotal 618 (1) 618 1 -- -- ----- --- ----- --- --- --- Cash Dividends: Preferred Stock (4) -- (4) -- -- -- Common Stock (200) -- (200) -- -- -- ----- --- ----- --- --- --- Total Cash Dividends (204) -- (204) -- -- -- ----- --- ----- --- --- --- BALANCE DECEMBER 31, 2003 $ 414 $(1) $ 414 $ 1 $-- $-- ===== === ===== === === === PSE&G - Public Service Electric and Gas Company TRANSITION FUNDING - PSE&G Transition Funding LLC NEW MILLENNIUM - Public Service New Millennium Economic Development Fund LLC NJP - New Jersey Properties, Inc. PUBLIC SERVICE ELECTRIC AND GAS COMPANY CONSOLIDATING BALANCE SHEET As of December 31, 2003 (Millions) PSE&G INTERCOMPANY TRANSITION PSE&G ELIMINATIONS FUNDING NEW CONSOL. & RECLASS. PSE&G LLC MILLENNIUM NJP ------- ------------ ------- ---------- ---------- --- CURRENT ASSETS Cash and Cash Equivalents $ 140 $ -- $ 139 $ 1 $-- $-- Accounts Receivable 804 -- 804 -- -- -- Unbilled Revenues 261 -- 261 -- -- -- Materials and Supplies 50 -- 50 -- -- -- Prepayments 44 -- 44 -- -- -- Restricted Cash 5 -- -- 5 -- -- Other 17 -- 17 -- -- -- ------- ---- ------- ------ --- --- Total Current Assets 1,321 -- 1,315 6 -- -- ------- ---- ------- ------ --- --- PROPERTY, PLANT AND EQUIPMENT 9,793 -- 9,793 -- -- -- Less: Accumulated Depreciation and Amortization (3,258) -- (3,258) -- -- -- ------- ---- ------- ------ --- --- Net Property, Plant and Equipment 6,535 -- 6,535 -- -- -- ------- ---- ------- ------ --- --- NONCURRENT ASSETS Regulatory Assets 4,801 (12) 2,488 2,313 -- 12 Long-Term Investments 131 -- 122 -- 9 -- Investment in Subsidiaries -- (23) 23 -- -- -- Other Special Funds 272 -- 272 -- -- -- Intangibles 2 -- 2 -- -- -- Other 74 -- 61 13 -- -- ------- ---- ------- ------ --- --- Total Noncurrent Assets 5,280 (35) 2,968 2,326 9 12 ------- ---- ------- ------ --- --- TOTAL ASSETS $13,136 $(35) $10,818 $2,332 $ 9 $12 ======= ==== ======= ====== === === PSE&G - Public Service Electric and Gas Company TRANSITION FUNDING - PSE&G Transition Funding LLC NEW MILLENNIUM - Public Service New Millennium Economic Development Fund LLC NJP - New Jersey Properties, Inc. PUBLIC SERVICE ELECTRIC AND GAS COMPANY CONSOLIDATING BALANCE SHEET As of December 31, 2003 (Millions) INTERCOMPANY PSE&G PSE&G ELIMINATIONS TRANSITION NEW CONSOL. & RECLASS. PSE&G FUNDING LLC MILLENNIUM NJP ------- ------------ ------- ----------- ---------- --- CURRENT LIABILITIES Long-Term Debt Due Within One Year $ 423 $ -- $ 286 $ 137 $-- $-- Accounts Payable 691 -- 640 39 -- 12 Other 432 -- 375 57 -- -- ------- ---- ------- ------ --- --- Total Current Liabilities 1,546 -- 1,301 233 -- 12 ------- ---- ------- ------ --- --- NONCURRENT LIABILITIES Deferred Income Taxes and Investment Tax Credits (ITC) 2,715 -- 2,715 -- -- -- Regulatory Liabilities 536 (12) 548 -- -- -- Other Postemployment Benefits (OPEB) Costs 509 -- 509 -- -- -- Accrued Pension Costs 16 -- 16 -- -- -- Other 145 -- 145 -- -- -- ------- ---- ------- ------ --- --- Total Noncurrent Liabilities 3,921 (12) 3,933 -- -- -- ------- ---- ------- ------ --- --- COMMITMENTS AND CONTINGENT LIABILITIES -- -- -- -- -- -- ------- ---- ------- ------ --- --- CAPITALIZATION LONG-TERM DEBT Long-Term Debt 3,044 -- 3,044 -- -- -- Securitization Debt 2,085 -- -- 2,085 -- -- ------- ---- ------- ------ --- --- Total Long-Term Debt 5,129 -- 3,044 2,085 -- -- ------- ---- ------- ------ --- --- PREFERRED SECURITIES 80 -- 80 -- -- -- ------- ---- ------- ------ --- --- COMMON STOCKHOLDER'S EQUITY Common Stock 892 -- 892 -- -- -- Contributed Capital 170 (22) 170 13 9 -- Basis Adjustment 986 -- 986 -- -- -- Retained Earnings 414 (1) 414 1 -- -- Accumulated Other Comprehensive Loss (2) -- (2) -- -- -- ------- ---- ------- ------ --- --- Total Common Stockholders' Equity 2,460 (23) 2,460 14 9 -- ------- ---- ------- ------ --- --- Total Capitalization 7,669 (23) 5,584 2,099 9 -- ------- ---- ------- ------ --- --- TOTAL LIABILITIES AND CAPITALIZATION $13,136 $(35) $10,818 $2,332 $ 9 $12 ======= ==== ======= ====== === === PSE&G - Public Service Electric and Gas Company TRANSITION FUNDING - PSE&G Transition Funding LLC NEW MILLENNIUM - Public Service New Millennium Economic Development Fund LLC NJP - New Jersey Properties, Inc. PSEG POWER LLC CONSOLIDATING STATEMENT OF OPERATIONS For The Year Ended December 31, 2003 (Millions) PSEG INTERCOMPANY PSEG PSEG PSEG PSEG POWER & ELIMINATIONS PSEG FOSSIL LLC NUCLEAR LLC PSEG POWER POWER SUBS. (A) & RECLASS. POWER & SUBS. (A) & SUBS. (A) ER&T INVEST CO. DEVP CO. --------- ------------ ----- ----------- ----------- ------ ---------- -------- OPERATING REVENUES $5,605 $(957) $ -- $459 $631 $5,472 $ -- $-- OPERATING EXPENSES Energy Costs 3,746 (957) -- -- 113 4,590 -- -- Operation and Maintenance 914 -- (4) 335 513 70 -- -- Depreciation and Amortization 102 -- 5 82 14 1 -- -- ------ ----- ----- ---- ---- ------ ---- --- Total Operating Expenses 4,762 (957) 1 417 640 4,661 -- -- ------ ----- ----- ---- ---- ------ ---- --- OPERATING INCOME 843 -- (1) 42 (9) 811 -- -- Other Income 149 (137) 15 -- 144 11 116 -- Other Deductions (78) -- -- -- (78) -- -- -- Equity Earnings (Losses) of Subsidiaries (928) 928 Interest Expense (114) 137 (159) (12) (29) (51) -- -- ------ ----- ----- ---- ---- ------ ---- --- INCOME BEFORE INCOME TAXES AND CUMULATIVE EFFECT OF A CHANGE IN ACCOUNTING PRINCIPLE 800 (928) 783 30 28 771 116 -- Income Tax Expense (326) -- 61 (12) (11) (317) (47) -- ------ ----- ----- ---- ---- ------ ---- --- INCOME BEFORE CUMULATIVE EFFECT OF A CHANGE IN ACCOUNTING PRINCIPLE 474 (928) 844 18 17 454 69 -- Cumulative Effect of a Change in Accounting Principle, net of tax 370 -- -- 78 292 -- -- -- ------ ----- ----- ---- ---- ------ ---- --- NET INCOME $ 844 $(928) $ 844 $ 96 $309 $ 454 $ 69 $-- ====== ===== ===== ==== ==== ====== ==== === (A) Exceeds 2% of Enterprise's consolidated operating revenues. For additional information, see Item I. PSEG POWER - PSEG Power LLC PSEG FOSSIL - PSEG Fossil LLC PSEG NUCLEAR - PSEG Nuclear LLC PSEG ER&T - PSEG Resources & Trade LLC PSEG POWER LLC CONSOLIDATING STATEMENT OF RETAINED EARNINGS For The Year Ended December 31, 2003 (Millions) PSEG INTERCOMPANY PSEG PSEG PSEG PSEG POWER & ELIMINATIONS PSEG FOSSIL LLC NUCLEAR PSEG POWER POWER SUBS. & RECLASS. POWER & SUBS. (A) LLC & SUBS. ER&T INVEST CO. DEVP CO. ------- ------------ ------ ----------- ----------- ------- ---------- -------- BALANCE JANUARY 1, 2003 $ 966 $(1,128) $ 966 $(115) $ (103) $1,202 $ 144 $-- Net Income 844 (928) 844 96 309 454 69 -- -- ------ ------- ------ ----- ----- ------ ----- --- Subtotal 1,810 (2,056) 1,810 (19) 206 1,656 213 -- ------ ------- ------ ----- ----- ------ ----- --- Cash Dividends: Common Stock -- 1,291 -- -- (630) (486) (175) -- ------ ------- ------ ----- ----- ------ ----- --- Total Cash Dividends -- 1,291 -- -- (630) (486) (175) -- ------ ------- ------ ----- ----- ------ ----- --- BALANCE DECEMBER 31, 2003 $1,810 $ (765) $1,810 $ (19) $(424) $1,170 $ 38 $-- ====== ======= ====== ===== ===== ====== ===== === PSEG POWER - PSEG Power LLC PSEG FOSSIL - PSEG Fossil LLC PSEG NUCLEAR - PSEG Nuclear LLC PSEG ER&T - PSEG Resources & Trade LLC PSEG POWER LLC CONSOLIDATING BALANCE SHEET As of December 31, 2003 (Millions) PSEG PSEG INTERCOMPANY PSEG PSEG POWER PSEG POWER & ELIMINATIONS PSEG FOSSIL NUCLEAR PSEG INVEST POWER SUBS. & RECLASS. POWER LLC & SUBS. LLC & SUBS. ER&T CO. DEVP CO. ------- ------------ ------ ----------- ----------- ------ ------ -------- CURRENT ASSETS Cash and Cash Equivalents $ 66 $ -- $ (244) $ 177 $ 188 $ (55) $ -- $-- Accounts Receivable - net 615 (59) -- 21 32 573 48 -- Accounts Receivable - Affiliated Companies, net 240 95 327 29 (36) (165) (10) -- Short-Term Loan to Affiliate 77 (1,839) 1,675 -- -- 241 -- -- Fuel 516 -- -- (2) 1 517 -- -- Materials and Supplies 162 -- -- 66 96 -- -- -- Energy Trading Contracts 101 -- -- -- -- 101 -- -- Other 32 -- 4 3 3 22 -- -- ------- ------- ------ ------ ------ ------ ---- --- Total Current Assets 1,809 (1,803) 1,762 294 284 1,234 38 -- ------- ------- ------ ------ ------ ------ ---- --- PROPERTY, PLANT AND EQUIPMENT 5,980 1 73 4,859 1,037 10 -- -- Less: Accumulated Depreciation and Amortization (1,399) -- (28) (930) (440) (1) -- -- ------- ------- ------ ------ ------ ------ ---- --- Net Property, Plant and Equipment 4,581 1 45 3,929 597 9 -- -- ------- ------- ------ ------ ------ ------ ---- --- NONCURRENT ASSETS Deferred Income Taxes and Investment Tax Credits (ITC) 24 -- 9 96 (97) 16 -- -- Notes Receivable - Affiliated Companies -- (300) 300 -- -- -- -- -- Investment in Subsidiaries -- (3,329) 3,329 -- -- -- -- -- Nuclear Decommissioning Trust Funds 985 -- -- -- 985 -- -- -- Intangibles 108 1 3 56 -- 48 -- -- Other 221 -- 143 12 -- 66 -- -- ------- ------- ------ ------ ------ ------ ---- --- Total Noncurrent Assets 1,338 (3,628) 3,784 164 888 130 -- -- ------- ------- ------ ------ ------ ------ ---- --- TOTAL ASSETS $ 7,728 $(5,430) $5,591 $4,387 $1,769 $1,373 $ 38 $-- ======= ======= ====== ====== ====== ====== ==== === PSEG POWER - PSEG Power LLC PSEG FOSSIL - PSEG Fossil LLC PSEG NUCLEAR - PSEG Nuclear LLC PSEG ER&T - PSEG Resources & Trade LLC PSEG POWER LLC CONSOLIDATING BALANCE SHEET As of December 31, 2003 (Millions) PSEG INTERCOMPANY PSEG PSEG PSEG PSEG POWER & ELIMINATIONS PSEG FOSSIL NUCLEAR PSEG POWER POWER SUBS. & RECLASS. POWER LLC & SUBS. LLC & SUBS. ER&T INVEST CO. DEVP CO. ------- ------------ ------ ----------- ----------- ------- ---------- -------- CURRENT LIABILITIES Accounts Payable $ 800 $ (11) $ 49 $ 91 $ 73 $ 598 $-- $-- Short-Term Loan from Affiliate -- (1,839) -- 1,145 694 -- -- -- Energy Trading Contracts 72 -- -- -- -- 72 -- -- Other 207 (46) 77 62 28 86 -- -- ------ ------- ------ ------ ------ ------ --- --- Total Current Liabilities 1,079 (1,896) 126 1,298 795 756 -- -- ------ ------- ------ ------ ------ ------ --- --- NONCURRENT LIABILITIES Nuclear Decommissioning 284 -- -- -- 284 -- -- -- Accrued Pension Costs 14 -- 14 -- -- -- -- -- Other 130 -- 30 61 7 32 -- -- ------ ------- ------ ------ ------ ------ --- --- Total Noncurrent Liabilities 428 -- 44 61 291 32 -- -- ------ ------- ------ ------ ------ ------ --- --- COMMITMENTS AND CONTINGENT LIABILITIES -- -- -- -- -- -- -- -- ------ ------- ------ ------ ------ ------ --- --- LONG TERM DEBT Notes Payable - Affiliated Company -- (300) -- 300 -- -- -- -- Project Level, Non-Recourse Debt 800 -- -- 800 -- -- -- -- Long-Term Debt 2,816 -- 2,816 -- -- -- -- -- ------ ------- ------ ------ ------ ------ --- --- Total Long-Term Debt 3,616 (300) 2,816 1,100 -- -- -- -- ------ ------- ------ ------ ------ ------ --- --- MEMBER'S EQUITY Contributed Capital 1,700 (2,384) 1,700 1,965 989 (570) -- -- Basis Adjustment (986) -- (986) (10) -- 10 -- -- Retained Earnings 1,810 (765) 1,810 (19) (424) 1,170 38 -- Accumulated Other Comprehensive Income (Loss) 81 (85) 81 (8) 118 (25) -- -- ------ ------- ------ ------ ------ ------ --- --- Total Member's Equity 2,605 (3,234) 2,605 1,928 683 585 38 -- ------ ------- ------ ------ ------ ------ --- --- Total Capitalization 6,221 (3,234) 5,421 3,028 683 585 38 -- ------ ------- ------ ------ ------ ------ --- --- TOTAL LIABILITIES AND MEMBER'S EQUITY $7,728 $(5,430) $5,591 $4,387 $1,769 $1,373 $38 $-- ====== ======= ====== ====== ====== ====== === === PSEG POWER - PSEG Power LLC PSEG FOSSIL - PSEG Fossil LLC PSEG NUCLEAR - PSEG Nuclear LLC PSEG ER&T - PSEG Resources & Trade LLC PSEG FOSSIL LLC CONSOLIDATING STATEMENT OF OPERATIONS For The Year Ended December 31, 2003 (Millions) PSEG INTERCOMPANY PSEG PSEG POWER PSEG FOSSIL LLC ELIMINATIONS FOSSIL NEW YORK LAWRENCEBURG & SUBS. (A) & RECLASS. LLC INC. ENERGY LLC ----------- ------------ ------ ---------- ------------ OPERATING REVENUES $459 $ -- $326 $16 $-- OPERATING EXPENSES Operation and Maintenance 335 1 257 16 -- Depreciation and Amortization 82 (1) 68 -- ---- ---- ---- --- --- Total Operating Expenses 417 -- 325 16 -- ---- ---- ---- --- --- OPERATING INCOME 42 -- 1 -- -- Other Income and Deductions -- -- -- -- -- Equity Earnings Loss in Subs -- (21) 21 -- -- Interest Expense (12) -- (1) -- -- ---- ---- ---- --- --- INCOME BEFORE INCOME TAXES AND CUMULATIVE EFFECT OF A CHANGE IN ACCOUNTING PRINCIPLE 30 (21) 21 -- -- Income Taxes (12) -- 1 -- -- ---- ---- ---- --- --- INCOME BEFORE CUMULATIVE EFFECT OF A CHANGE IN ACCOUNTING PRINCIPLE 18 (21) 22 -- -- Cumulative Effect of a Change in Accounting Principle, net of tax 78 -- 74 4 -- ---- ---- ---- --- --- NET INCOME $ 96 $(21) $ 96 $ 4 $-- ==== ==== ==== === === PSEG POWER PSEG PSEG POWER PSEG POWER BELLPORT WATERFORD MIDWEST CONNECTICUT LLC ENERGY LLC LLC LLC ---------- ---------- ---------- ----------- OPERATING REVENUES $-- $ -- $-- $117 OPERATING EXPENSES Operation and Maintenance -- 3 1 57 Depreciation and Amortization -- 5 -- 10 --- ---- --- ---- Total Operating Expenses -- 8 1 67 --- ---- --- ---- OPERATING INCOME -- (8) (1) 50 Other Income and Deductions -- -- -- -- Equity Earnings Loss in Subs -- -- -- -- Interest Expense -- (7) -- (4) --- ---- --- ---- INCOME BEFORE INCOME TAXES AND CUMULATIVE EFFECT OF A CHANGE IN ACCOUNTING PRINCIPLE -- (15) (1) 46 Income Taxes -- 6 -- (19) --- ---- --- ---- INCOME BEFORE CUMULATIVE EFFECT OF A CHANGE IN ACCOUNTING PRINCIPLE -- (9) (1) 27 Cumulative Effect of a Change in Accounting Principle, net of tax -- -- -- -- --- ---- --- ---- NET INCOME $-- $ (9) $(1) $ 27 === ==== === ==== (A) Exceeds 2% of Enterprise's consolidated operating revenues. For additional information, see Item I. PSEG FOSSIL LLC CONSOLIDATING STATEMENT OF RETAINED EARNINGS For The Year Ended December 31, 2003 (Millions) PSEG INTERCOMPANY PSEG PSEG POWER PSEG FOSSIL LLC ELIMINATIONS FOSSIL NEW YORK LAWRENCEBURG & SUBS. & RECLASS. LLC INC ENERGY LLC ---------- ------------ ------ ---------- ------------ BALANCE JANUARY 1, 2003 $(115) $ (7) $(115) $ 4 $-- Net Income 96 (21) 96 4 -- ----- ---- ----- ---- --- BALANCE DECEMBER 31, 2003 $ (19) $(28) $ (19) $ 8 $-- ===== ==== ===== ==== === PSEG POWER PSEG PSEG POWER PSEG POWER BELLPORT WATERFORD MIDWEST CONNECTICUT LLC ENERGY LLC LLC LLC ---------- ---------- ---------- ----------- BALANCE JANUARY 1, 2003 $-- $ 1 $-- $ 2 Net Income -- (9) (1) 27 --- --- --- --- BALANCE DECEMBER 31, 2003 $-- $(8) $(1) $29 === === === === PSEG FOSSIL LLC CONSOLIDATING BALANCE SHEET As of December 31, 2003 (Millions) PSEG INTERCOMPANY PSEG PSEG POWER PSEG FOSSIL LLC ELIMINATIONS FOSSIL NEW YORK LAWRENCEBURG & SUBS. & RECLASS. LLC INC. ENERGY LLC ---------- ------------ ------ ---------- ------------ CURRENT ASSETS Cash and Cash Equivalents $ 177 $ -- $ 138 $ -- $ 21 Accounts Receivable - net 21 -- -- 1 2 Accounts Receivable Affiliated Companies - net 29 (10) 47 (19) 1 Fuel (2) -- -- -- -- Materials and Supplies 66 -- 51 1 4 Energy Trading Contracts -- -- -- -- -- Other 3 -- 1 2 -- ------ ----- ------ ---- ---- Total Current Assets 294 (10) 237 (15) 28 ------ ----- ------ ---- ---- PROPERTY, PLANT AND EQUIPMENT 4,859 -- 3,031 336 662 Less: Accumulated Depreciation and Amortization (930) -- (913) (2) -- ------ ----- ------ ---- ---- Net Property, Plant and Equipment 3,929 -- 2,118 334 662 ------ ----- ------ ---- ---- NONCURRENT ASSETS Deferred Income Taxes and Inv. Tax Credits 96 -- 95 (4) 1 Investment in Subs -- (678) 678 -- -- Intangibles 56 -- -- 56 -- Other 12 -- -- -- 9 ------ ----- ------ ---- ---- Total Noncurrent Assets 164 (678) 773 52 10 ------ ----- ------ ---- ---- TOTAL ASSETS $4,387 $(688) $3,128 $371 $700 ====== ===== ====== ==== ==== PSEG POWER PSEG PSEG POWER PSEG POWER BELLPORT WATERFORD MIDWEST CONNECTICUT LLC ENERGY LLC LLC LLC ---------- ---------- ---------- ----------- CURRENT ASSETS Cash and Cash Equivalents $-- $ 19 $-- $ (1) Accounts Receivable - net -- -- -- 18 Accounts Receivable net - Affiliated Companies (87) 9 6 82 Fuel -- -- -- (2) Materials and Supplies -- 3 -- 7 Energy Trading Contracts -- -- -- -- Other -- -- -- -- --- ---- --- ---- Total Current Assets (87) 31 6 104 --- ---- --- ---- PROPERTY, PLANT AND EQUIPMENT 84 509 -- 237 Less: Accumulated Depreciation and Amortization -- (5) -- (10) --- ---- --- ---- Net Property, Plant and Equipment 84 504 -- 227 --- ---- --- ---- NONCURRENT ASSETS Deferred Income Taxes and Inv. Tax Credits 3 4 -- (3) Investment in Subs -- -- -- -- Intangibles -- -- -- -- Other -- 3 -- -- --- ---- --- ---- Total Noncurrent Assets 3 7 -- (3) --- ---- --- ---- TOTAL ASSETS $-- $542 $ 6 $328 === ==== === ==== PSEG FOSSIL LLC CONSOLIDATING BALANCE SHEET As of December 31, 2003 (Millions) PSEG INTERCOMPANY PSEG PSEG POWER PSEG FOSSIL LLC ELIMINATIONS FOSSIL NEW YORK LAWRENCEBURG & SUBS. & RECLASS. LLC INC. ENERGY LLC ---------- ------------ ------ ---------- ------------ CURRENT LIABILITIES Accounts Payable $ 91 $ -- $ 42 $ 25 $ 16 Other 1,207 -- 1,107 59 2 ------ ----- ------ ---- ---- Total Current Liabilities 1,298 -- 1,149 84 18 ------ ----- ------ ---- ---- NONCURRENT LIABILITIES Deferred Income Taxes -- -- -- -- -- Environmental 57 -- 51 -- -- Other 4 -- -- 3 -- ------ ----- ------ ---- ---- Total Noncurrent Liabilities 61 -- 51 3 -- ------ ----- ------ ---- ---- COMMITMENTS AND CONTINGENT LIABILITIES -- -- -- -- -- ------ ----- ------ ---- ---- LONG TERM DEBT Notes Payable - Affiliated Company 300 -- -- 150 -- Long-Term Debt 800 -- -- -- 445 ------ ----- ------ ---- ---- Total Long-Term Debt 1,100 -- -- 150 445 ------ ----- ------ ---- ---- MEMBER'S EQUITY Contributed Capital 1,965 (678) 1,965 126 237 Basis Adjustment (10) 10 (10) -- -- Retained Earnings (19) (28) (19) 8 -- Accumulated Other Comprehensive Income (8) 8 (8) -- -- ------ ----- ------ ---- ---- Total Member's Equity 1,928 (688) 1,928 134 237 ------ ----- ------ ---- ---- Total Capitalization 3,028 (688) 1,928 284 682 ------ ----- ------ ---- ---- TOTAL LIABILITIES AND MEMBER'S EQUITY $4,387 $(688) $3,128 $371 $700 ====== ===== ====== ==== ==== PSEG POWER PSEG PSEG POWER PSEG POWER BELLPORT WATERFORD MIDWEST CONNECTICUT LLC ENERGY LLC LLC LLC ---------- ---------- ---------- ----------- CURRENT LIABILITIES Accounts Payable $ -- $ -- $ -- $ 8 Other -- 8 7 24 ---- ---- --- ---- Total Current Liabilities -- 8 7 32 ---- ---- --- ---- NONCURRENT LIABILITIES Deferred Income Taxes -- -- -- -- Environmental -- -- -- 6 Other -- -- -- 1 ---- ---- --- ---- Total Noncurrent Liabilities -- -- -- 7 ---- ---- --- ---- COMMITMENTS AND CONTINGENT LIABILITIES -- -- -- -- ---- ---- --- ---- LONG TERM DEBT Notes Payable - Affiliated Company -- -- -- 150 Long-Term Debt -- 355 -- -- ---- ---- --- ---- Total Long-Term Debt -- 355 -- 150 ---- ---- --- ---- MEMBER'S EQUITY Contributed Capital -- 205 -- 110 Basis Adjustment -- (10) -- -- Retained Earnings -- (8) (1) 29 Accumulated Other Comprehensive Income -- (8) -- -- ---- ---- --- ---- Total Member's Equity -- 179 (1) 139 ---- ---- --- ---- Total Capitalization -- 534 (1) 289 ---- ---- --- ---- TOTAL LIABILITIES AND MEMBER'S EQUITY $ -- $542 $ 6 $328 ==== ==== === ==== PSEG NUCLEAR LLC CONSOLIDATING STATEMENT OF OPERATIONS For The Year Ended December 31, 2003 (Millions) PSEG INTERCOMPANY PSEG THE NUCLEAR LLC ELIMINATIONS NUCLEAR FRANCIS & SUBS. (A) & RECLASS. LLC CORP. ----------- ------------ ------- ------- OPERATING REVENUES $631 $-- $631 $-- OPERATING EXPENSES Energy Costs 113 -- 113 -- Operation and Maintenance 513 -- 513 -- Depreciation and Amortization 14 -- 14 -- ---- --- ---- --- Total Operating Expenses 640 -- 640 -- ---- --- ---- --- OPERATING INCOME (9) -- (9) -- Other Income and Deductions 66 -- 66 -- Interest Expense (29) -- (29) -- ---- --- ---- --- INCOME BEFORE INCOME TAXES 28 -- 28 -- Income Taxes (11) -- (11) -- ---- --- ---- --- INCOME BEFORE CUMULATIVE EFFECT OF A CHANGE IN ACCOUNTING PRINCIPLE 17 -- 17 -- Cumulative Effect of a Change in Accounting Principle 292 -- 292 -- ---- --- ---- --- NET INCOME $309 $-- $309 $-- ==== === ==== === (A) Exceeds 2% of Enterprise's consolidated operating revenues. For additional information, see Item I. PSEG NUCLEAR LLC CONSOLIDATING STATEMENT OF RETAINED EARNINGS For The Year Ended December 31, 2003 (Millions) PSEG INTERCOMPANY PSEG THE NUCLEAR LLC ELIMINATIONS NUCLEAR FRANCIS & SUBS. & RECLASS. LLC CORP. ----------- ------------ ------- ------- BALANCE JANUARY 1, 2003 $(103) $-- $(103) $-- Net Income 309 -- 309 -- ----- --- ----- --- Subtotal 206 -- 206 -- ----- --- ----- --- Cash Dividends: Common Stock (630) -- (630) -- ----- --- ----- --- Total Cash Dividends (630) -- (630) -- ----- --- ----- --- BALANCE DECEMBER 31, 2003 $(424) $-- $(424) $-- ===== === ===== === PSEG NUCLEAR LLC CONSOLIDATING BALANCE SHEET As of December 31, 2003 (Millions) PSEG INTERCOMPANY PSEG THE NUCLEAR LLC ELIMINATIONS NUCLEAR FRANCIS & SUBS. & RECLASS. LLC CORP. ----------- ------------ ------- ------- CURRENT ASSETS Cash and Cash Equivalents $ 188 $-- $ 188 $-- Accounts Receivable 32 -- 32 -- Accounts Receivable - Affiliated Companies (36) -- (36) -- Fuel 1 -- 1 -- Materials and Supplies 96 -- 96 -- Other 3 -- 3 -- ------ --- ------ --- Total Current Assets 284 -- 284 -- ------ --- ------ --- PROPERTY, PLANT AND EQUIPMENT 1,037 (5) 1,037 5 Less: Accumulated depreciation and amortization (440) -- (440) -- ------ --- ------ --- Net Property, Plant and Equipment 597 (5) 597 5 ------ --- ------ --- NONCURRENT ASSETS Deferred Income Taxes (97) -- (97) -- Other 985 -- 985 -- ------ --- ------ --- Total Noncurrent Assets 888 -- 888 -- ------ --- ------ --- TOTAL ASSETS $1,769 $(5) $1,769 $ 5 ====== === ====== === PSEG NUCLEAR LLC CONSOLIDATING BALANCE SHEET As of December 31, 2003 (Millions) PSEG INTERCOMPANY PSEG THE NUCLEAR LLC ELIMINATIONS NUCLEAR FRANCIS & SUBS. & RECLASS. LLC CORP. ----------- ------------ ------- ------- CURRENT LIABILITIES Accounts Payable $ 767 $-- $ 767 $-- Other 28 -- 28 -- ------ --- ------ --- Total Current Liabilities 795 -- 795 -- ------ --- ------ --- NONCURRENT LIABILITIES Nuclear Decommissioning 284 -- 284 -- Other 7 -- 7 -- ------ --- ------ --- Total Noncurrent Liabilities 291 -- 291 -- ------ --- ------ --- COMMITMENTS AND CONTINGENT LIABILITIES -- -- -- -- ------ --- ------ --- LONG TERM DEBT Notes Payable - Affiliated Company -- -- -- -- ------ --- ------ --- Total Long-Term Debt -- -- -- -- ------ --- ------ --- MEMBER'S EQUITY Contributed Capital 989 (5) 989 5 Retained Earnings (424) -- (424) -- Accumulated Other Comprehensive Income 118 -- 118 -- ------ --- ------ --- Total Member's Equity 683 (5) 683 5 ------ --- ------ --- Total Capitalization 683 (5) 683 5 ------ --- ------ --- TOTAL LIABILITIES AND MEMBER'S EQUITY $1,769 $(5) $1,769 $ 5 ====== === ====== === PSEG ENERGY HOLDINGS L.L.C. CONSOLIDATING STATEMENT OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 2003 (THOUSANDS) INTERCOMPANY PSEG PSEG ENERGY ELIMINATIONS ENERGY PSEG PSEG ENERGY HOLDINGS CONSOL. & RECLASS HOLDINGS GLOBAL RESOURCES TECHNOLOGIES ---------------- ------------ -------- --------- --------- ----------- REVENUES: Income from capital lease agreements $ 206,265 $ -- $ -- $ -- $206,265 $ -- Income from operating leases 10,387 -- -- -- 10,387 -- Income from withdrawal of partnership interests 44,500 -- -- 44,500 -- -- Rental income 10,355 -- -- -- -- -- Investment losses (4,199) -- -- -- (4,199) -- Interest and dividend income 489 -- -- -- 318 133 Electric revenues: Generation 254,014 -- -- 254,014 -- -- Distribution 155,114 -- -- 155,114 -- -- Other 22,101 -- -- 22,101 -- -- DSM revenues 24,852 -- -- -- 24,852 -- Other revenues 793 -- -- -- 793 -- Interest and other - associated cos. -- (190,808) 184,732 -- -- -- Equity in subsidiary earnings -- (149,428) 149,428 -- -- -- --------- --------- -------- --------- -------- -------- Total revenues 724,671 (340,236) 334,160 475,729 238,416 133 --------- --------- -------- --------- -------- -------- OPERATING EXPENSES: Electric energy costs 155,509 -- -- 155,509 -- -- Operation and maintenance 73,620 -- -- 50,145 15,509 -- Depreciation and amortization 43,599 -- 123 38,444 5,032 -- Write-down of investments (3,165) -- -- (3,165) -- -- Restructuring charges 3,330 -- -- 3,330 -- -- Administrative and general 102,217 (8,195) 15,887 81,776 13,412 -- --------- --------- -------- --------- -------- -------- Total operating expenses 375,110 (8,195) 16,010 326,039 33,953 -- --------- --------- -------- --------- -------- -------- INCOME FROM EQUITY METHOD INVESTMENTS: Income from joint ventures and partnerships 88,134 -- -- 86,954 1,236 -- Interest income 19,851 -- -- 19,851 -- -- Consulting and O&M fees 6,434 -- -- 6,434 -- -- --------- --------- -------- --------- -------- -------- Total income from equity method investments 114,419 -- -- 113,239 1,236 -- --------- --------- -------- --------- -------- -------- OPERATING INCOME 463,980 (332,041) 318,150 262,929 205,699 133 --------- --------- -------- --------- -------- -------- OTHER INCOME (LOSS) : Foreign currency transaction gain 16,444 -- -- 16,444 -- -- Change in derivative fair value (4,810) -- -- (4,810) -- -- Loss on early extinguishment of debt (357) 355 (357) (172) (183) -- Other 4,455 -- 2,076 2,379 -- -- --------- --------- -------- --------- -------- -------- Total other income (loss) 15,732 355 1,719 13,841 (183) -- --------- --------- -------- --------- -------- -------- INTEREST EXPENSE: PSEG Capital Corporation -- (6,028) -- 3,161 2,867 -- PSEG Energy Holdings L.L.C. -- (175,806) -- 84,722 90,704 -- PSEG Energy Technologies Inc. -- (64) 64 -- -- -- Enterprise Group Development Corp. -- (55) -- -- -- -- Other 229,926 (305) 176,131 42,953 2,825 -- Capitalized interest (11,661) -- -- (11,661) -- -- --------- --------- -------- --------- -------- -------- Net interest expense 218,265 (182,258) 176,195 119,175 96,396 -- --------- --------- -------- --------- -------- -------- INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES, MINORITY INTERESTS AND DISCONTINUED OPERATIONS 261,447 (149,428) 143,674 157,595 109,120 133 --------- --------- -------- --------- -------- -------- INCOME TAXES: Current (355,510) -- (714) (138,853) (214,423) 46 Deferred 400,863 -- (1,699) 147,700 252,475 -- Investment and energy tax credits - net (1,170) -- -- (434) (736) -- Foreign 14,821 -- -- 14,821 -- -- --------- --------- -------- --------- -------- -------- Total income taxes 59,004 -- (2,413) 23,234 37,316 46 --------- --------- -------- --------- -------- -------- MINORITY INTERESTS 13,157 -- -- 13,021 -- -- --------- --------- -------- --------- -------- -------- INCOME FROM CONTINUING OPERATIONS BEFORE DISCONTINUED OPERATIONS 189,286 (149,428) 146,087 121,340 71,804 87 --------- --------- -------- --------- -------- -------- DISCONTINUED OPERATIONS: Loss from discontinued operations (12,236) -- -- (617) -- (11,619) Loss on disposal of discontinued operations (31,596) -- (633) (22,733) -- (8,230) --------- --------- -------- --------- -------- -------- NET INCOME (LOSS) 145,454 (149,428) 145,454 97,990 71,804 (19,762) Preferred stock dividend requirements -- (4,004) -- 4,004 -- -- Preference units distributions 22,761 (18,757) 22,761 12,758 5,999 -- --------- --------- -------- --------- -------- -------- EARNINGS (LOSS) AVAILABLE TO ORDINARY MEMBER $ 122,693 $(126,667) $122,693 $ 81,228 $ 65,805 $(19,762) ========= ========= ======== ========= ======== ======== PSEG PETAMC EGDC CAPITAL ECFC ------- ------- ------- ---- REVENUES: Income from capital lease agreements $ -- $ -- $ -- $-- Income from operating leases -- -- -- -- Income from withdrawal of partnership interests -- -- -- -- Rental income -- 10,355 -- -- Investment losses -- -- -- -- Interest and dividend income 38 -- -- -- Electric revenues: Generation -- -- -- -- Distribution -- -- -- -- Other -- -- -- -- DSM revenues -- -- -- -- Other revenues -- -- -- -- Interest and other - associated cos. -- 55 6,021 -- Equity in subsidiary earnings -- -- -- -- ------- ------- ------ --- Total revenues 38 10,410 6,021 -- ------- ------- ------ --- OPERATING EXPENSES: Electric energy costs -- -- -- -- Operation and maintenance -- 7,966 -- -- Depreciation and amortization -- -- -- -- Write-down of investments -- -- -- -- Restructuring charges -- -- -- -- Administrative and general (991) 339 (11) -- ------- ------- ------ --- Total operating expenses (991) 8,305 (11) -- ------- ------- ------ --- INCOME (LOSS) FROM EQUITY METHOD INVESTMENTS: Income (loss) from joint ventures and partnerships -- (56) -- -- Interest income -- -- -- -- Consulting and O&M fees -- -- -- -- ------- ------- ------ --- Total income (loss) from equity method investments -- (56) -- -- ------- ------- ------ --- OPERATING INCOME (LOSS) 1,029 2,049 6,032 -- ------- ------- ------ --- OTHER INCOME (LOSS) : Foreign currency transaction gain -- -- -- -- Change in derivative fair value -- -- -- -- Loss on early extinguishment of debt -- -- -- -- Other -- -- -- -- ------- ------- ------ --- Total other income (loss) -- -- -- -- ------- ------- ------ --- INTEREST EXPENSE: PSEG Capital Corporation -- -- -- -- PSEG Energy Holdings L.L.C. 356 24 -- -- PSEG Energy Technologies Inc. -- -- -- -- Enterprise Group Development Corp. -- -- 55 -- Other 32 2,316 5,974 -- Capitalized interest -- -- -- -- ------- ------- ------ --- Net interest expense 388 2,340 6,029 -- ------- ------- ------ --- INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES, MINORITY INTERESTS AND DISCONTINUED OPERATIONS 641 (291) 3 -- ------- ------- ------ --- INCOME TAXES: Current (1,440) (129) 3 -- Deferred 2,358 29 -- -- Investment and energy tax credits - net -- -- -- -- Foreign -- -- -- -- ------- ------- ------ --- Total income taxes 918 (100) 3 -- ------- ------- ------ --- MINORITY INTERESTS -- 136 -- -- ------- ------- ------ --- INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE DISCONTINUED OPERATIONS (277) (327) -- -- ------- ------- ------ --- DISCONTINUED OPERATIONS: Loss from discontinued operations -- -- -- -- Loss on disposal of discontinued operations -- -- -- -- ------- ------- ------ --- NET INCOME (LOSS) (277) (327) -- -- Preferred stock dividend requirements -- -- -- -- Preference units distributions -- -- -- -- ------- ------- ------ --- EARNINGS (LOSS) AVAILABLE TO ORDINARY MEMBER $ (277) $ (327) $ -- $-- ======= ======= ====== === PSEG ENERGY HOLDINGS L.L.C. CONSOLIDATING STATEMENT OF RETAINED EARNINGS FOR THE YEAR ENDED DECEMBER 31, 2003 (Thousands) PSEG ENERGY INTERCOMPANY PSEG HOLDINGS ELIMINATIONS ENERGY PSEG PSEG ENERGY PSEG CONSOL. & RECLASS. HOLDINGS GLOBAL RESOURCES TECHNOLOGIES PETAMC EGDC CAPITAL ECFC -------- ------------ -------- --------- --------- ------------ ------ ---- ------- ---- BALANCE JANUARY 1, 2003 $ 55,826 $ 119,674 $ 55,826 $(215,192) $368,867 $(171,705) $ -- $(101,644) $-- $__ NET INCOME (LOSS) 145,454 (149,428) 145,454 97,990 71,804 (19,762) (277) (327) -- -- -------- --------- -------- --------- -------- --------- ----- --------- --- --- TOTAL 201,280 (29,754) 201,280 (117,202) 440,671 (191,467) (277) (101,971) -- -- -------- --------- -------- --------- -------- --------- ----- --------- --- --- DIVIDENDS DECLARED 22,761 (22,761) 22,761 16,762 5,999 -- -- -- -- -- SALE OF ENERGY TECHNOLOGIES -- (191,467) -- -- -- 191,467 -- -- -- -- -------- --------- -------- --------- -------- --------- ----- --------- --- --- BALANCE DECEMBER 31, 2003 $178,519 $(198,460) $178,519 $(133,964) $434,672 $-- $(277) $(101,971) $-- $-- ======== ========= ======== ========= ======== ========= ===== ========= === === PSEG ENERGY HOLDINGS L.L.C. CONSOLIDATING BALANCE SHEET AS OF DECEMBER 31, 2003 (THOUSANDS) INTERCOMPANY PSEG PSEG ENERGY ELIMINATIONS ENERGY PSEG PSEG HOLDINGS CONSOL. & RECLASS HOLDINGS GLOBAL RESOURCES ---------------- ------------ ---------- ---------- ---------- ASSETS CURRENT ASSETS: Cash and temporary cash investments $ 161,073 $ -- $ 74 $ 151,979 $ 7,177 Accounts receivable: Trade 108,232 -- -- 91,267 2,882 Allowance for doubtful accounts (5,512) -- -- -- (95) Other 17,527 -- 296 16,516 210 PSEG 172,577 (411) 4,319 47,626 83,848 PSEG Power 172 (70) -- 242 -- Other associated companies -- (72,956) 69,403 -- 3,553 Notes receivable: Associated companies 299,900 (1,724,714) 2,024,414 -- -- Other 2,462 -- -- -- -- Interest and dividends receivable 607 -- 537 -- 70 Fuel 10,912 -- -- 10,912 -- Materials and supplies 14,770 -- -- 14,770 -- Cost and earnings in excess of billings 988 -- -- -- -- Prepayments 6,623 -- 623 3,963 966 Current assets of discontinued operations 298,396 -- -- 298,396 -- ---------- ----------- ---------- ---------- ---------- Total current assets 1,088,727 (1,798,151) 2,099,666 635,671 98,611 ---------- ----------- ---------- ---------- ---------- PROPERTY, PLANT AND EQUIPMENT: Real estate 208,515 -- -- 19,275 84,849 Generation and distribution assets 1,053,418 -- -- 1,053,418 -- Furniture and equipment 68,211 -- 2,207 63,741 2,084 Construction work in progress 29,856 -- -- 29,497 -- Other 2,144 -- 917 1,202 25 Accum. depr. and amortization (170,212) -- (2,476) (136,150) (13,587) Valuation allowances (13,485) -- -- -- -- ---------- ----------- ---------- ---------- ---------- Property, plant and equipment - net 1,178,447 -- 648 1,030,983 73,371 ---------- ----------- ---------- ---------- ---------- INVESTMENTS: Subsidiaries -- (2,564,987) 2,564,987 -- -- Capital lease agreements 2,987,071 -- -- -- 2,987,071 Limited partnership interests 506,020 -- -- 411,865 94,155 General partnership interests 29,431 -- -- 20,166 -- Corporate joint ventures 1,040,424 -- -- 1,040,424 -- Securities 4,400 -- -- -- 4,400 DSM investment 22,765 -- -- -- 22,765 Other investments 3,837 -- -- -- -- Valuation allowances (10,527) -- -- -- (5,677) ---------- ----------- ---------- ---------- ---------- Total investments 4,583,421 (2,564,987) 2,564,987 1,472,455 3,102,714 ---------- ----------- ---------- ---------- ---------- OTHER ASSETS: Long-term receivable 9,626 -- 2,131 7,495 -- Deferred project costs 30,800 -- -- 30,800 -- Deferred finance costs 49,039 -- 14,650 34,389 -- Prepaid pension costs 15,709 -- 2,439 8,350 1,767 Goodwill 490,793 -- -- 490,793 -- Deferred tax asset -- (104,132) 266 98,436 112 Derivative asset 60 -- -- 60 -- Tenant improvements 666 -- -- -- -- Intangibles 5,283 -- 1,518 2,220 600 Other 4,790 -- 1,276 2,423 -- ---------- ----------- ---------- ---------- ---------- Total other assets 606,766 (104,132) 22,280 674,966 2,479 ---------- ----------- ---------- ---------- ---------- TOTAL ASSETS $7,457,361 $(4,467,270) $4,687,581 $3,814,075 $3,277,175 ========== =========== ========== ========== ========== PSEG PETAMC EGDC CAPITAL ECFC ------- -------- ------- ---- ASSETS CURRENT ASSETS: Cash and temporary cash investments $ 317 $ 1,526 $ -- $ -- Accounts receivable: Trade 14,083 -- -- -- Allowance for doubtful accounts (5,417) -- -- -- Other -- 505 -- -- PSEG 37,195 -- -- -- PSEG Power -- -- -- -- Other associated companies -- -- -- -- Notes receivable: Associated companies -- -- 100 100 Other 2,462 -- -- -- Interest and dividends receivable -- -- -- -- Fuel -- -- -- -- Materials and supplies -- -- -- -- Cost and earnings in excess of billings 988 -- -- -- Prepayments -- 1,071 -- -- Current assets of discontinued operations -- -- -- -- ------- -------- ---- ---- Total current assets 49,628 3,102 100 100 ------- -------- ---- ---- PROPERTY, PLANT AND EQUIPMENT: Real estate -- 104,391 -- -- Generation and distribution assets -- -- -- -- Furniture and equipment -- 179 -- -- Construction work in progress -- 359 -- -- Other -- -- -- -- Accum. depr. and amortization -- (17,999) -- -- Valuation allowances -- (13,485) -- -- ------- -------- ---- ---- Property, plant and equipment - net -- 73,445 -- -- ------- -------- ---- ---- INVESTMENTS: Subsidiaries -- -- -- -- Capital lease agreements -- -- -- -- Limited partnership interests -- -- -- -- General partnership interests -- 9,265 -- -- Corporate joint ventures -- -- -- -- Securities -- -- -- -- DSM investment -- -- -- -- Other investments 3,837 -- -- -- Valuation allowances -- (4,850) -- -- ------- -------- ---- ---- Total investments 3,837 4,415 -- -- ------- -------- ---- ---- OTHER ASSETS: Long-term receivable -- -- -- -- Deferred project costs -- -- -- -- Deferred finance costs -- -- -- -- Prepaid pension costs 3,153 -- -- -- Goodwill -- -- -- -- Deferred tax asset 2,169 3,149 -- -- Derivative asset -- -- -- -- Tenant improvements -- 666 -- -- Intangibles 945 -- -- -- Other -- 1,091 -- -- ------- -------- ---- ---- Total other assets 6,267 4,906 -- -- ------- -------- ---- ---- TOTAL ASSETS $59,732 $ 85,868 $100 $100 ======= ======== ==== ==== PSEG ENERGY HOLDINGS L.L.C. CONSOLIDATING BALANCE SHEET AS OF DECEMBER 31, 2003 (THOUSANDS) INTERCOMPANY PSEG PSEG ENERGY ELIMINATIONS ENERGY PSEG PSEG HOLDINGS CONSOL. & RECLASS HOLDINGS GLOBAL RESOURCES ---------------- ------------ ---------- ---------- ---------- LIABILITIES AND MEMBER'S/ STOCKHOLDER'S EQUITY CURRENT LIABILITIES: Accounts payable: Trade $ 52,985 $ -- $ -- $ 52,723 $ 262 Taxes 8,383 -- -- 7,959 373 Other 61,473 -- 1,237 51,464 4,516 Interest 54,809 -- 44,077 9,808 924 Associated companies 3,780 (73,437) 674 32,869 36,533 Billings in excess of costs and earnings 41 -- -- -- -- Notes payable: PSEG Capital Corporation -- (100) 100 -- -- PSEG Energy Holdings L.L.C. -- (1,724,514) -- 772,153 940,972 Enterprise Capital Funding Corp. -- (100) 100 -- -- Other 1,996 -- -- 1,996 -- Long-term debt due within one year 302,996 -- 266,732 33,149 1,380 Current liabilities of discontinued operations 241,837 -- -- 241,837 -- ---------- ----------- ---------- ---------- ---------- Total current liabilities 728,300 (1,798,151) 312,920 1,203,958 984,960 ---------- ----------- ---------- ---------- ---------- TOTAL LONG-TERM DEBT 2,737,889 -- 1,799,323 884,273 30,975 ---------- ----------- ---------- ---------- ---------- DEFERRED TAXES AND OTHER LIABILITIES: Deferred income taxes 1,480,346 (104,132) (5,324) -- 1,589,802 Deferred investment and energy tax credits 6,513 -- -- 6,513 -- Deferred revenues 31,909 -- -- 31,909 -- Derivative liability 107,476 -- 1,099 106,377 -- Other long-term payables 26,239 -- 4,586 14,947 2,548 ---------- ----------- ---------- ---------- ---------- Total deferred taxes and other liabilities 1,652,483 (104,132) 361 159,746 1,592,350 ---------- ----------- ---------- ---------- ---------- MINORITY INTERESTS 34,524 -- -- 28,736 -- ---------- ----------- ---------- ---------- ---------- MEMBER'S /STOCKHOLDER'S EQUITY: Common stock -- (701) -- -- -- Preference units/Preferred stock 509,200 (509,200) 509,200 375,000 134,200 Ordinary unit/common stock and capital 1,887,708 (1,856,626) 1,887,708 1,566,818 100,134 Undistributed retained earnings/deficit 178,519 (198,460) 178,519 (133,964) 434,672 Cumulative translation adjustment (193,217) -- -- (193,217) -- Accumulated other comprehensive loss (78,045) -- (450) (77,275) (116) ---------- ----------- ---------- ---------- ---------- Total member's/stockholder's equity 2,304,165 (2,564,987) 2,574,977 1,537,362 668,890 ---------- ----------- ---------- ---------- ---------- TOTAL LIABILITIES AND MEMBER'S/ STOCKHOLDER'S EQUITY $7,457,361 $(4,467,270) $4,687,581 $3,814,075 $3,277,175 ========== =========== ========== ========== ========== PSEG PETAMC EGDC CAPITAL ECFC ------- --------- ------- ---- LIABILITIES AND MEMBER'S/ STOCKHOLDER'S EQUITY CURRENT LIABILITIES: Accounts payable: Trade $ -- $ -- $ -- $ -- Taxes -- 51 -- -- Other 3,892 364 -- -- Interest -- -- -- -- Associated companies 6,723 418 -- -- Billings in excess of costs and earnings 41 -- -- -- Notes payable: PSEG Capital Corporation -- -- -- -- PSEG Energy Holdings L.L.C. 10,634 755 -- -- Enterprise Capital Funding Corp. -- -- -- -- Other -- -- -- -- Long-term debt due within one year -- 1,735 -- -- Current liabilities of discontinued operations -- -- -- -- ------- --------- ---- ---- Total current liabilities 21,290 3,323 -- -- ------- --------- ---- ---- TOTAL LONG-TERM DEBT -- 23,318 -- -- ------- --------- ---- ---- DEFERRED TAXES AND OTHER LIABILITIES: Deferred income taxes -- -- -- -- Deferred investment and energy tax credits -- -- -- -- Deferred revenues -- -- -- -- Derivative liability -- -- -- -- Other long-term payables 4,158 -- -- -- ------- --------- ---- ---- Total deferred taxes and other liabilities 4,158 -- -- -- ------- --------- ---- ---- MINORITY INTERESTS -- 5,788 -- -- ------- --------- ---- ---- MEMBER'S /STOCKHOLDER'S EQUITY: Common stock -- 501 100 100 Preference units/Preferred stock -- -- -- -- Ordinary unit/common stock and capital 34,765 154,909 -- -- Undistributed retained earnings/deficit (277) (101,971) -- -- Cumulative translation adjustment -- -- -- -- Accumulated other comprehensive loss (204) -- -- -- ------- --------- ---- ---- Total member's/stockholder's equity 34,284 53,439 100 100 ------- --------- ---- ---- TOTAL LIABILITIES AND MEMBER'S/ STOCKHOLDER'S EQUITY $59,732 $ 85,868 $100 $100 ======= ========= ==== ==== PSEG GLOBAL L.L.C. CONSOLIDATING STATEMENT OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 2003 (THOUSANDS) PSEG INTERCOMPANY PSEG PSEG GLOBAL GLOBAL L.L.C. ELIMINATIONS GLOBAL USA CONSOL. & RECLASS. L.L.C. CONSOL. ------------- ------------ -------- ----------- REVENUES: Income from capital lease agreements $ -- $ -- $ -- $ -- Gain on Withdrawal from Partnership 44,500 -- 44,500 -- Other -- -- -- -- Electric Revenues Generation 254,014 -- 1 53,255 Distribution 155,114 -- -- -- Other 22,101 -- 1 -- Equity in subsidiary earnings -- (290,025) 290,025 -- --------- --------- -------- -------- Total revenues 475,729 (290,025) 334,527 53,255 --------- --------- -------- -------- OPERATING EXPENSES: Operation and maintenance 50,145 -- -- 6,627 Write-down of Project Investments (3,165) -- -- -- Depreciation and amortization 38,444 -- 1,052 10,728 Electric and Energy Costs 155,509 -- 1 2,768 Administrative and general 85,106 -- 26,328 4,555 --------- --------- -------- -------- Total operating expenses 326,039 -- 27,381 24,678 --------- --------- -------- -------- Income from partnerships 86,954 -- (183) 52,938 Interest and dividend income 19,851 -- 4,893 10,879 Consulting and O&M fees 6,434 -- 4,085 1,270 --------- --------- -------- -------- Total Income from equity method investments 113,239 -- 8,795 65,087 --------- --------- -------- -------- OPERATING INCOME 262,929 (290,025) 315,941 93,664 --------- --------- -------- -------- Foreign currency Translation Gain/Loss 16,444 -- 5 302 Change in Derivative Fair Value-FAS 133 (4,810) -- (1) -- Write off of investments -- -- -- -- Realized gains (losses) on investments (172) -- (61) (111) Other 2,379 -- (139) (578) --------- --------- -------- -------- OTHER INCOME 13,841 -- (196) (387) --------- --------- -------- -------- PSEG Capital Corporation 3,161 -- 3,056 105 PSEG Energy Holdings 84,722 -- 83,228 720 Enterprise Capital Funding Corp. -- -- -- -- Other Associated Companies -- -- (292) -- Other 42,953 -- 53 13,980 Capitalized interest (11,661) -- (11,281) -- --------- --------- -------- -------- INTEREST EXPENSE - NET 119,175 -- 74,764 14,805 --------- --------- -------- -------- INCOME BEFORE INCOME TAXES 157,595 (290,025) 240,981 78,472 --------- --------- -------- -------- INCOME TAXES: Current (138,853) -- (96,844) (25,842) Deferred 147,700 -- 239,515 31,133 Foreign Taxes 14,821 -- 1 (75) Investment and energy tax credits - net (434) -- -- (434) --------- --------- -------- -------- Total income taxes 23,234 -- 142,672 4,782 --------- --------- -------- -------- MINORITY INTERESTS 13,021 (206) -- 7,445 --------- --------- -------- -------- INCOME FROM CONTINUING OPERATIONS 121,340 (289,819) 98,309 66,245 --------- --------- -------- -------- DISCONTINUED OPERATIONS Cumulative Effect of a change in Acct. Principle -- -- -- -- Income from Discontinued Operations - Net of Taxes (617) -- (318) 245 Gain on Sale of Discontinued Operations - Net of Taxes (22,733) -- -- -- --------- --------- -------- -------- INCOME FROM DISCONTINUED OPERATIONS (23,350) -- (318) 245 --------- --------- -------- -------- NET INCOME 97,990 (289,819) 97,991 66,490 --------- --------- -------- -------- Preferred Dividend Requirement 16,762 -- 16,762 -- --------- --------- -------- -------- EARNINGS AVAILABLE TO COMMON STOCK $ 81,228 $(289,819) $ 81,229 $ 66,490 ========= ========= ======== ======== PSEG PSEG GLOBAL EUROPE PSEG INT'L HOLDINGS (Delaware) INDIA LLC PSEG LLC COMPANY CONSOL. BAJA, INC CONSOL. CONSOL -------------- --------- ---------- ------- REVENUES: Income from capital lease agreements $ -- $ -- $ -- $ -- Gain on Withdrawal from Partnership -- -- -- -- Other -- -- -- -- Electric Revenues Generation 74,009 -- 126,749 -- Distribution 155,114 -- -- -- Other 21,309 -- 791 -- Equity in subsidiary earnings -- -- -- -- --------- -------- -------- ----- Total revenues 250,432 -- 127,540 -- --------- -------- -------- ----- OPERATING EXPENSES: Operation and maintenance 15,617 -- 27,901 -- Write-down of Project Investments (3,491) -- 326 -- Depreciation and amortization 21,119 -- 5,545 -- Electric and Energy Costs 100,468 -- 52,272 -- Administrative and general 29,189 15 24,939 80 --------- -------- -------- ----- Total operating expenses 162,902 15 110,983 80 --------- -------- -------- ----- Income from partnerships 39,327 950 (5,906) (172) Interest and dividend income 552 207 3,320 -- Consulting and O&M fees 571 327 181 -- --------- -------- -------- ----- Total Income from equity method investments 40,450 1,484 (2,405) (172) --------- -------- -------- ----- OPERATING INCOME 127,980 1,469 14,152 (252) --------- -------- -------- ----- Foreign currency Translation Gain/Loss 8,442 -- 7,695 -- Change in Derivative Fair Value-FAS 133 (5,651) -- 842 -- Write off of investments -- -- -- Realized gains (losses) on investments -- -- -- Other 2,094 -- 1,002 -- --------- -------- -------- ----- OTHER INCOME 4,885 -- 9,539 -- --------- -------- -------- ----- PSEG Capital Corporation -- -- -- -- PSEG Energy Holdings 774 -- -- -- Enterprise Capital Funding Corp. -- -- -- -- Other Associated Companies (233) -- 525 -- Other 24,241 -- 4,679 -- Capitalized interest (380) -- -- -- --------- -------- -------- ----- INTEREST EXPENSE - NET 24,402 -- 5,204 -- --------- -------- -------- ----- INCOME BEFORE INCOME TAXES 108,463 1,469 18,487 (252) --------- -------- -------- ----- INCOME TAXES: Current (284) (18,126) 2,274 (31) Deferred (123,173) (333) 295 263 Foreign Taxes 13,506 -- 1,389 -- Investment and energy tax credits - net -- -- -- -- --------- -------- -------- ----- Total income taxes (109,951) (18,459) 3,958 232 --------- -------- -------- ----- MINORITY INTERESTS 831 -- 4,951 -- --------- -------- -------- ----- INCOME FROM CONTINUING OPERATIONS 217,583 19,928 9,578 (484) --------- -------- -------- ----- DISCONTINUED OPERATIONS Cumulative Effect of a change in Acct. Principle -- -- -- -- Income from Discontinued Operations - Net of Taxes (544) -- -- -- Gain on Sale of Discontinued Operations - Net of Taxes (22,733) -- -- -- --------- -------- -------- ----- INCOME FROM DISCONTINUED OPERATIONS (23,277) -- -- -- --------- -------- -------- ----- NET INCOME 194,306 19,928 9,578 (484) --------- -------- -------- ----- Preferred Dividend Requirement -- -- -- -- --------- -------- -------- ----- EARNINGS AVAILABLE TO COMMON STOCK $ 194,306 $ 19,928 $ 9,578 $(484) ========= ======== ======== ===== PSEG GLOBAL L.L.C. CONSOLIDATING STATEMENT OF RETAINED EARNINGS FOR THE YEAR ENDED DECEMBER 31, 2003 (THOUSANDS) PSEG INTERCOMPANY PSEG PSEG GLOBAL GLOBAL L.L.C. ELIMINATIONS GLOBAL USA CONSOL. & RECLASS. L.L.C. CONSOL. ------------- ------------ ----------- ----------- BALANCE JANUARY 1, 2003 $(215,192) $ 366,248 $(215,193) $100,384 NET INCOME 97,990 (289,819) 97,991 66,490 --------- --------- --------- -------- TOTAL (117,202) 76,429 (117,202) 166,874 --------- --------- --------- -------- DIVIDENDS DECLARED 16,762 -- 16,762 -- --------- --------- --------- -------- --------- --------- --------- -------- BALANCE DECEMBER 31, 2003 $(133,964) $ 76,429 $(133,964) $166,874 ========= ========= ========= ======== PSEG PSEG GLOBAL EUROPE PSEG INT'L HOLDINGS (Delaware) INDIA LLC PSEG LLC COMPANY CONSOL. BAJA, INC CONSOL. CONSOL -------------- --------- ---------- -------- BALANCE JANUARY 1, 2003 $(508,375) $48,673 $(11,060) $4,131 NET INCOME 194,306 19,928 9,578 (484) --------- ------- -------- ------ TOTAL (314,069) 68,601 (1,482) 3,647 --------- ------- -------- ------ DIVIDENDS DECLARED -- -- -- -- --------- ------- -------- ------ --------- ------- -------- ------ BALANCE DECEMBER 31, 2003 $(314,069) $68,601 $ (1,482) $3,647 ========= ======= ======== ====== PSEG GLOBAL L.L.C. CONSOLIDATING BALANCE SHEET DECEMBER 31, 2003 (THOUSANDS) PSEG INTERCOMPANY PSEG PSEG GLOBAL GLOBAL L.L.C. ELIMINATIONS GLOBAL USA CONSOL. & RECLASS. L.L.C. CONSOL. ------------- ------------ ----------- ----------- ASSETS CURRENT ASSETS Cash and temporary cash investments $ 151,979 $ -- $ 139 $ 18,245 Accounts and Notes receivable: Trade 91,267 (3) 147 1,431 Other 16,516 -- 16 39 PSE&G -- -- -- -- PSEG 47,626 -- 47,711 -- PSEG Power 242 -- 166 76 PSEG Energy Holdings -- -- -- -- Other associated companies -- (6,007,525) 2,871,790 1,566,702 Notes receivable: Associated companies -- -- -- -- Other -- -- -- -- Interest receivable -- -- -- -- Restricted Cash -- -- -- -- Assets held for sale -- -- -- -- Current Assets of Disc Ops 298,396 -- 21,737 150 Prepayments 3,963 -- 352 256 Fuel 10,912 -- (44) -- Materials and supplies 14,770 -- 44 -- ---------- ----------- ---------- ---------- Total Current Assets 635,671 (6,007,528) 2,942,058 1,586,899 ---------- ----------- ---------- ---------- PROPERTY, PLANT AND EQUIPMENT Real estate 19,275 -- 1,480 -- Generation and distribution assets 1,053,418 -- -- -- Furniture and equipment 63,741 -- 6,830 185 Construction work in progress 29,497 -- -- -- Other 1,202 -- (3,367) -- Accum. depr. and amortization (136,150) -- (2,296) (143) Valuation allowances -- -- -- -- ---------- ----------- ---------- ---------- Property, Plant and Equipment-net 1,030,983 -- 2,647 42 ---------- ----------- ---------- ---------- INVESTMENTS Subsidiaries -- (2,270,585) 2,222,286 9,782 Capital lease agreements -- -- -- -- Limited partnership interests 411,865 -- 17,806 394,059 General partnership interests 20,166 -- 1 20,165 Corporate joint ventures 1,040,424 -- 29,840 223,208 Securities -- -- -- -- Valuation allowances -- -- -- -- ---------- ----------- ---------- ---------- Total Investments 1,472,455 (2,270,585) 2,269,933 647,214 ---------- ----------- ---------- ---------- OTHER ASSETS Long-term receivable 7,495 -- -- 5,500 Goodwill 490,793 -- -- -- Deferred tax asset 98,436 (134,675) 201,097 (27) Derivative Asset 60 -- -- 161 Restricted Cash -- -- -- -- Project Start Up Costs 30,800 -- 12,026 9,486 Deferred finance costs 34,389 -- (212) 15,372 Prepaid Pension Costs 8,350 -- 7,178 1,127 Intangibles 2,220 -- 656 533 Other 2,423 -- 7 234 ---------- ----------- ---------- ---------- Total Other Assets 674,966 (134,675) 220,752 32,386 ---------- ----------- ---------- ---------- TOTAL ASSETS $3,814,075 $(8,412,788) $5,435,390 $2,266,541 ========== =========== ========== ========== PSEG PSEG GLOBAL EUROPE PSEG INT'L HOLDINGS (Delaware) INDIA LLC PSEG LLC COMPANY CONSOL. BAJA, INC CONSOL. CONSOL -------------- --------- --------- -------- ASSETS CURRENT ASSETS Cash and temporary cash investments $ 122,085 $ 13 $ 11,369 $ 128 Accounts and Notes receivable: Trade 64,453 -- 25,054 185 Other 15,549 1 911 -- PSE&G -- -- -- -- PSEG (85) -- -- -- PSEG Power -- -- -- -- PSEG Energy Holdings -- -- -- -- Other associated companies 1,074,838 239,898 251,618 2,679 Notes receivable: Associated companies -- -- -- -- Other -- -- -- -- Interest receivable -- -- -- -- Restricted Cash -- -- -- -- Assets held for sale -- -- -- -- Current Assets of Disc Ops 276,509 -- -- -- Prepayments 1,919 -- 1,436 -- Fuel 1,821 -- 9,135 -- Materials and supplies 10,404 -- 4,322 -- ---------- -------- -------- -------- Total Current Assets 1,567,493 239,912 303,845 2,992 ---------- -------- -------- -------- PROPERTY, PLANT AND EQUIPMENT Real estate 14,720 -- 3,075 -- Generation and distribution assets 690,353 -- 363,065 -- Furniture and equipment 56,726 -- -- -- Construction work in progress 19,490 -- 10,007 -- Other 4,568 -- 1 -- Accum. depr. and amortization (125,048) -- (8,663) -- Valuation allowances -- -- -- -- ---------- -------- -------- -------- Property, Plant and Equipment-net 660,809 -- 367,485 -- ---------- -------- -------- -------- INVESTMENTS Subsidiaries 38,517 -- -- -- Capital lease agreements -- -- -- -- Limited partnership interests -- -- -- -- General partnership interests -- -- -- -- Corporate joint ventures 677,060 -- 74,666 35,650 Securities -- -- -- -- Valuation allowances -- -- -- -- ---------- -------- -------- -------- Total Investments 715,577 -- 74,666 35,650 ---------- -------- -------- -------- OTHER ASSETS Long-term receivable 1,995 -- -- Goodwill 482,641 -- 8,152 -- Deferred tax asset 31,378 -- 663 -- Derivative Asset (101) -- -- Restricted Cash -- -- -- Project Start Up Costs 4,931 -- 4,357 -- Deferred finance costs 12,214 -- 7,015 -- Prepaid Pension Costs 45 -- -- Intangibles 663 -- 368 -- Other 2,182 -- -- -- ---------- -------- -------- -------- Total Other Assets 535,948 -- 20,555 -- ---------- -------- -------- -------- TOTAL ASSETS $3,479,827 $239,912 $766,551 $38,642 ========== ======== ======== ======== PSEG GLOBAL L.L.C. CONSOLIDATING BALANCE SHEET DECEMBER 31, 2003 (THOUSANDS) PSEG INTERCOMPANY PSEG PSEG GLOBAL GLOBAL L.L.C. ELIMINATIONS GLOBAL USA CONSOL. & RECLASS. L.L.C. CONSOL. ------------- ------------ ----------- ----------- LIABILITIES AND STOCKHOLDER'S EQUITY CURRENT LIABILITIES Accounts payable: Trade $ 52,723 $ (4) $ 375 $ (433) Taxes 7,959 -- 2,161 753 Other 51,464 -- 4,088 2,799 Interest 9,808 1 -- 2,757 Associated companies 32,869 (5,610,157) 2,866,574 885,290 Notes payable: PSEG Capital Corporation -- -- -- -- PSEG Energy Holdings 772,153 -- 755,202 7,342 Other 1,996 -- -- -- Other associated companies -- -- -- -- Current portion of long-term debt 33,149 -- -- -- Current Liabilities of Disc Ops 241,837 -- 73 -- ---------- ----------- ---------- ---------- Total Current Liabilities 1,203,958 (5,610,160) 3,628,473 898,508 ---------- ----------- ---------- ---------- TOTAL LONG-TERM DEBT 884,273 -- -- 161,600 ---------- ----------- ---------- ---------- DEFERRED CREDITS Deferred income taxes -- (134,680) 250,372 48,626 Deferred investment and energy tax credits 6,513 -- 393 6,120 Deferred revenues 31,909 -- 13,392 13,635 Derivative Liability 106,377 -- -- -- Other 14,947 -- 5,398 2,595 ---------- ----------- ---------- ---------- Total Deferred Credits 159,746 (134,680) 269,555 70,976 ---------- ----------- ---------- ---------- MINORITY INTEREST 28,736 (9,761) -- 9,761 ---------- ----------- ---------- ---------- STOCKHOLDER'S EQUITY Capital stock -- (11) -- 10 Preferred stock -- -- -- -- Preference Units 375,000 -- 375,000 -- Stock Subs Payable -- -- -- -- Members Capital 1,566,818 -- 1,566,818 -- Contributed capital -- (3,040,425) -- 981,214 Retained earnings (133,964) 76,429 (133,964) 166,874 Other Comprehensive Income (77,275) 77,017 (77,275) (6,292) Cumulative Translation Adjustment (193,217) 228,803 (193,217) (16,110) ---------- ----------- ---------- ---------- Total Stockholder's Equity 1,537,362 (2,658,187) 1,537,362 1,125,696 ---------- ----------- ---------- ---------- TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY $3,814,075 $(8,412,788) $5,435,390 $2,266,541 ========== =========== ========== ========== PSEG PSEG GLOBAL EUROPE PSEG INT'L HOLDINGS (Delaware) INDIA LLC PSEG LLC COMPANY CONSOL. BAJA, INC CONSOL. CONSOL -------------- --------- --------- -------- LIABILITIES AND STOCKHOLDER'S EQUITY CURRENT LIABILITIES Accounts payable: Trade $ 38,886 $ -- $ 13,895 $ 4 Taxes 1,907 3,138 -- -- Other 34,923 -- 9,654 -- Interest 5,333 -- 1,717 -- Associated companies 1,387,128 160,055 337,253 6,726 Notes payable: PSEG Capital Corporation -- -- -- -- PSEG Energy Holdings 9,609 -- -- -- Other -- -- 1,996 -- Other associated companies -- -- -- -- Current portion of long-term debt 29,422 -- 3,727 -- Current Liabilities of Disc Ops 241,764 -- -- -- ---------- -------- -------- ------- Total Current Liabilities 1,748,972 163,193 368,242 6,730 ---------- -------- -------- ------- TOTAL LONG-TERM DEBT 438,590 -- 284,083 -- ---------- -------- -------- ------- DEFERRED CREDITS Deferred income taxes (131,808) (501) (32,016) 7 Deferred investment and energy tax credits -- -- -- -- Deferred revenues -- 4,891 (9) -- Derivative Liability 24,248 -- 82,129 -- Other (674) -- 7,628 -- ---------- -------- -------- ------- Total Deferred Credits (108,234) 4,390 57,732 7 ---------- -------- -------- ------- MINORITY INTEREST 13,104 -- 15,632 -- ---------- -------- -------- ------- STOCKHOLDER'S EQUITY Capital stock -- 1 -- -- Preferred stock -- -- -- -- Preference Units -- -- -- -- Stock Subs Payable -- -- -- -- Members Capital -- -- -- -- Contributed capital 1,928,388 3,727 98,838 28,258 Retained earnings (314,069) 68,601 (1,482) 3,647 Other Comprehensive Income (13,958) -- (56,767) -- Cumulative Translation Adjustment (212,966) -- 273 -- ---------- -------- -------- ------- Total Stockholder's Equity 1,387,395 72,329 40,862 31,905 ---------- -------- -------- ------- TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY $3,479,827 $239,912 $766,551 $38,642 ========== ======== ======== ======= PSEG GLOBAL USA CONSOLIDATING STATEMENT OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 2003 (THOUSANDS) PSEG GLOBAL INTERCOMPANY USA ELIMINATIONS PSEG PSEG CONSOL. & RECLASS. USA CONEMAUGH -------- ------------ -------- --------- REVENUES: Income from capital lease agreements $ -- $ -- $ -- $ -- Gain on Sale of operating assets -- -- -- -- Realized gains (losses) on investments -- -- -- -- Electric Revenues Generation 53,255 -- -- -- Distribution -- -- -- -- Equity in subsidiary earnings -- (59,534) 59,534 -- -------- -------- ------- ----- Total revenues 53,255 (59,534) 59,534 -- -------- -------- ------- ----- OPERATING EXPENSES: Operation and maintenance 6,627 -- -- -- Write-down of project investments -- -- -- -- Depreciation and amortization 10,728 -- 238 -- Fuel expenses 2,768 -- -- -- Administrative and general 4,555 -- (3,588) 3 -------- -------- ------- ----- Total operating expenses 24,678 -- (3,350) 3 -------- -------- ------- ----- Income from partnerships 52,938 -- 8,753 -- Interest and dividend income 10,879 -- -- -- Consulting and O&M fees 1,270 -- -- -- -------- -------- ------- ----- Total Income from equity method investments 65,087 -- 8,753 -- -------- -------- ------- ----- OPERATING INCOME 93,664 (59,534) 71,637 (3) -------- -------- ------- ----- OTHER INCOME Foreign currency Translation Gain/Loss 302 -- -- -- Gain on sale - other (111) -- (51) -- Other (578) -- (1) -- Change in derivative fair value -- -- -- -- -------- -------- ------- ----- Total Other Income (387) -- (52) -- -------- -------- ------- ----- INTEREST EXPENSE: PSEG Capital Corporation 105 -- 105 -- PSEG Energy Holdings 720 -- 720 -- Other Associated Companies -- -- -- -- Other 13,980 -- 117 -- Capitalized interest -- -- -- -- -------- -------- ------- ----- Net interest expense 14,805 -- 942 -- -------- -------- ------- ----- INCOME BEFORE INCOME TAXES 78,472 (59,534) 70,643 (3) -------- -------- ------- ----- INCOME TAXES: Current (25,842) -- 3,872 286 Deferred 31,133 -- 640 (210) Foreign Taxes (75) -- -- -- Investment and energy tax credits - net (434) -- (359) -- -------- -------- ------- ----- Total income taxes 4,782 -- 4,153 76 -------- -------- ------- ----- MINORITY INTERESTS 7,445 -- -- -- -------- -------- ------- ----- INCOME FROM CONTINUING OPERATIONS 66,245 (59,534) 66,490 (79) -------- -------- ------- ----- DISCONTINUED OPERATIONS Cumulative Effect of a change in Acct. Principle -- -- -- -- Income from Discontinued Operations - Net of Taxes 245 -- -- -- Gain on Sale of Discontinued Operations - Net of Taxes -- -- -- -- -------- -------- ------- ----- INCOME FROM DISCONTINUED OPERATIONS 245 -- -- -- -------- -------- ------- ----- NET INCOME $ 66,490 $(59,534) $66,490 $ (79) ======== ======== ======= ===== PSEG PSEG PSEG PROJECT GWF PSEG TRACY SERVICES CONSOL. EASING ------ -------- ------- ------ REVENUES: Income from capital lease agreements $ -- $-- $ -- $-- Gain on Sale of operating assets -- -- -- -- Realized gains (losses) on investments -- -- -- -- Electric Revenues Generation -- -- -- -- Distribution -- -- -- -- Equity in subsidiary earnings -- -- -- -- ------ --- ---- --- Total revenues -- -- -- -- ------ --- ---- --- OPERATING EXPENSES: Operation and maintenance -- -- -- -- Write-down of project investments -- -- -- -- Depreciation and amortization -- -- -- -- Fuel expenses -- -- -- -- Administrative and general 171 4 8 3 ------ --- ---- --- Total operating expenses 171 4 8 3 ------ --- ---- --- Income from partnerships 1,154 -- 14 -- Interest and dividend income -- -- -- -- Consulting and O&M fees 194 -- -- -- ------ --- ---- --- Total Income from equity method investments 1,348 -- 14 -- ------ --- ---- --- OPERATING INCOME 1,177 (4) 6 (3) ------ --- ---- --- OTHER INCOME Foreign currency Translation Gain/Loss -- -- -- -- Gain on sale - other -- -- -- -- Other -- -- -- -- Change in derivative fair value -- -- -- -- ------ --- ---- --- Total Other Income -- -- -- -- ------ --- ---- --- INTEREST EXPENSE: PSEG Capital Corporation -- -- -- -- PSEG Energy Holdings -- -- -- -- Other Associated Companies -- -- -- -- Other -- -- -- -- Capitalized interest -- -- -- -- ------ --- ---- --- Net interest expense -- -- -- -- ------ --- ---- --- INCOME BEFORE INCOME TAXES 1,177 (4) 6 (3) ------ --- ---- --- INCOME TAXES: Current 329 4 63 (1) Deferred 150 (5) (59) -- Foreign Taxes -- -- -- -- Investment and energy tax credits - net -- -- -- -- ------ --- ---- --- Total income taxes 479 (1) 4 (1) ------ --- ---- --- MINORITY INTERESTS -- -- -- -- ------ --- ---- --- INCOME FROM CONTINUING OPERATIONS 698 (3) 2 (2) ------ --- ---- --- DISCONTINUED OPERATIONS Cumulative Effect of a change in Acct. Principle -- -- -- -- Income from Discontinued Operations - Net of Taxes -- -- -- -- Gain on Sale of Discontinued Operations - Net of Taxes -- -- -- -- ------ --- ---- --- INCOME FROM DISCONTINUED OPERATIONS -- -- -- -- ------ --- ---- --- NET INCOME $ 698 $(3) $ 2 $(2) ====== === ==== === PSEG GLOBAL USA CONSOLIDATING STATEMENT OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 2003 (THOUSANDS) PSEG PSEG PSEG PSEG INDIA DEBLOIS MOUNT HENRIETTA PRIVATE INVESTMENT CARMEL TURBINE LTD. ---------- ------ --------- ------- REVENUES: Income from capital lease agreements $-- $ -- $-- $ -- Gain on Sale of operating assets -- -- -- -- Realized gains (losses) on investments -- -- -- -- Electric Revenues Generation -- -- -- -- Distribution -- -- -- -- Equity in subsidiary earnings -- -- -- -- --- ----- --- ------- Total revenues -- -- -- -- --- ----- --- ------- OPERATING EXPENSES: Operation and maintenance -- -- -- -- Write-down of project investments -- -- -- -- Depreciation and amortization -- -- -- 70 Fuel expenses -- -- -- -- Administrative and general 3 3 -- 922 --- ----- --- ------- Total operating expenses 3 3 -- 992 --- ----- --- ------- Income from partnerships -- -- -- -- Interest and dividend income -- -- -- -- Consulting and O&M fees -- -- -- -- --- ----- --- ------- Total Income from equity method investments -- -- -- -- --- ----- --- ------- OPERATING INCOME (3) (3) -- (992) --- ----- --- ------- OTHER INCOME Foreign currency Translation Gain/Loss -- -- -- (2) Gain on sale - other -- -- -- 10 Other -- -- -- 2 Change in derivative fair value -- -- -- -- --- ----- --- ------- Total Other Income -- -- -- 10 --- ----- --- ------- INTEREST EXPENSE: PSEG Capital Corporation -- -- -- -- PSEG Energy Holdings -- -- -- -- Other Associated Companies -- -- -- -- Other -- -- -- -- Capitalized interest -- -- -- -- --- ----- --- ------- Net interest expense -- -- -- -- --- ----- --- ------- INCOME BEFORE INCOME TAXES (3) (3) -- (982) --- ----- --- ------- INCOME TAXES: Current (1) 119 -- -- Deferred -- (103) -- 1,083 Foreign Taxes -- -- -- -- Investment and energy tax credits - net -- -- -- -- --- ----- --- ------- Total income taxes (1) 16 -- 1,083 --- ----- --- ------- MINORITY INTERESTS -- -- -- -- --- ----- --- ------- INCOME FROM CONTINUING OPERATIONS (2) (19) -- (2,065) --- ----- --- ------- DISCONTINUED OPERATIONS Cumulative Effect of a change in Acct. Principle -- -- -- -- Income from Discontinued Operations - Net of Taxes -- -- -- -- Gain on Sale of Discontinued Operations - Net of Taxes -- -- -- -- --- ----- --- ------- INCOME FROM DISCONTINUED OPERATIONS -- -- -- -- --- ----- --- ------- NET INCOME $(2) $ (19) $-- $(2,065) === ===== === ======= PSEG PSEG ASIA PSEG INTERNATIONAL INC. INDIA CEMAS SERVICES CONSOL. INC ------- ------------- -------- ----- REVENUES: Income from capital lease agreements $ -- $ -- $ -- $ -- Gain on Sale of operating assets -- -- -- -- Realized gains (losses) on investments -- -- -- -- Electric Revenues Generation -- -- -- -- Distribution -- -- -- -- Equity in subsidiary earnings -- -- -- -- ------- ------- ------- ---- Total revenues -- -- -- -- ------- ------- ------- ---- OPERATING EXPENSES: Operation and maintenance -- -- -- -- Write-down of project investments -- -- -- -- Depreciation and amortization -- -- -- 4 Fuel expenses -- -- -- -- Administrative and general 15 1,340 6 -- ------- ------- ------- ---- Total operating expenses 15 1,340 6 4 ------- ------- ------- ---- Income from partnerships -- -- -- -- Interest and dividend income -- -- -- -- Consulting and O&M fees -- -- -- -- ------- ------- ------- ---- Total Income from equity method investments -- -- -- -- ------- ------- ------- ---- OPERATING INCOME (15) (1,340) (6) (4) ------- ------- ------- ---- OTHER INCOME Foreign currency Translation Gain/Loss -- -- -- -- Gain on sale - other -- -- -- (26) Other -- 15 -- -- Change in derivative fair value -- -- -- -- ------- ------- ------- ---- Total Other Income -- 15 -- (26) ------- ------- ------- ---- INTEREST EXPENSE: PSEG Capital Corporation -- -- -- -- PSEG Energy Holdings -- -- -- -- Other Associated Companies -- -- -- -- Other -- (21) -- -- Capitalized interest -- -- -- -- ------- ------- ------- ---- Net interest expense -- (21) -- -- ------- ------- ------- ---- INCOME BEFORE INCOME TAXES (15) (1,304) (6) (30) ------- ------- ------- ---- INCOME TAXES: Current (5,164) (742) (2) (26) Deferred -- 285 -- 16 Foreign Taxes -- -- -- -- Investment and energy tax credits - net -- -- -- -- ------- ------- ------- ---- Total income taxes (5,164) (457) (2) (10) ------- ------- ------- ---- MINORITY INTERESTS -- -- -- -- ------- ------- ------- ---- INCOME FROM CONTINUING OPERATIONS 5,149 (847) (4) (20) ------- ------- ------- ---- DISCONTINUED OPERATIONS Cumulative Effect of a change in Acct. Principle -- -- -- -- Income from Discontinued Operations - Net of Taxes -- -- -- -- Gain on Sale of Discontinued Operations - Net of Taxes -- -- -- -- ------- ------- ------- ---- INCOME FROM DISCONTINUED OPERATIONS -- -- -- -- ------- ------- ------- ---- NET INCOME $ 5,149 $ (847) $ (4) $(20) ======= ======= ======= ==== PSEG GLOBAL USA CONSOLIDATING STATEMENT OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 2003 (THOUSANDS) PSEG PSEG INTERATIONAL PSEG PSEG PSEG US SERVICES INC NEW HAWAIIAN HAWAIIAN INC CONSOL. HAMPSHIRE MGT INVESTMENT ----------- ------------ --------- -------- ---------- REVENUES: Income from capital lease agreements $ -- $ -- $ -- $ -- $ -- Gain on Sale of operating assets -- -- -- -- -- Realized gains (losses) on investments -- -- -- -- -- Electric Revenues Generation -- 53,255 -- -- -- Distribution -- -- -- -- -- Equity in subsidiary earnings -- -- -- -- -- ----- -------- ------ ---- ------ Total revenues -- 53,255 -- -- -- ----- -------- ------ ---- ------ OPERATING EXPENSES: Operation and maintenance -- 6,627 -- -- -- Write-down of project investments -- -- -- -- -- Depreciation and amortization -- 10,416 -- -- -- Fuel expenses -- 2,768 -- -- -- Administrative and general 245 5,260 162 -- 1 ----- -------- ------ ---- ------ Total operating expenses 245 25,071 162 -- 1 ----- -------- ------ ---- ------ Income from partnerships -- 31,760 6,195 255 4,472 Interest and dividend income -- 10,879 -- -- -- Consulting and O&M fees -- 247 152 -- -- ----- -------- ------ ---- ------ Total Income from equity method investments -- 42,886 6,347 255 4,472 ----- -------- ------ ---- ------ OPERATING INCOME (245) 71,070 6,185 255 4,471 ----- -------- ------ ---- ------ OTHER INCOME Foreign currency Translation Gain/Loss -- 315 -- -- -- Gain on sale - other -- (44) -- -- -- Other -- (594) -- -- -- Change in derivative fair value -- -- -- -- -- ----- -------- ------ ---- ------ Total Other Income -- (323) -- -- -- ----- -------- ------ ---- ------ INTEREST EXPENSE: PSEG Capital Corporation -- -- -- -- -- PSEG Energy Holdings -- -- -- -- -- Other Associated Companies -- -- -- -- -- Other -- 13,795 -- -- -- Capitalized interest -- -- -- -- -- ----- -------- ------ ---- ------ Net interest expense -- 13,795 -- -- -- ----- -------- ------ ---- ------ INCOME BEFORE INCOME TAXES (245) 56,952 6,185 255 4,471 ----- -------- ------ ---- ------ INCOME TAXES: Current (94) (27,627) 2,398 34 286 Deferred 8 28,055 (201) 66 1,463 Foreign Taxes -- (75) -- -- -- Investment and energy tax credits - net -- -- (75) -- -- ----- -------- ------ ---- ------ Total income taxes (86) 353 2,122 100 1,749 ----- -------- ------ ---- ------ MINORITY INTERESTS -- 7,445 -- -- -- ----- -------- ------ ---- ------ INCOME FROM CONTINUING OPERATIONS (159) 49,154 4,063 155 2,722 ----- -------- ------ ---- ------ DISCONTINUED OPERATIONS Cumulative Effect of a change in Acct. Principle -- -- -- -- -- Income from Discontinued Operations - Net of Taxes -- 245 -- -- -- Gain on Sale of Discontinued Operations - Net of Taxes -- -- -- -- -- ----- -------- ------ ---- ------ INCOME FROM DISCONTINUED OPERATIONS -- 245 -- -- -- ----- -------- ------ ---- ------ NET INCOME $(159) $ 49,399 $4,063 $155 $2,722 ===== ======== ====== ==== ====== PSEG PSEG CHILQUINTA PSEG KI KALAELOA FINANCE SVILUPPO PSEG HOLDINGS INC INC LLC SRL POLSKA CONSOL. -------- ---------- -------- ------ ------------ REVENUES: Income from capital lease agreements $ -- $ -- $ -- $ -- $-- Gain on Sale of operating assets -- -- -- -- -- Realized gains (losses) on investments -- -- -- -- -- Electric Revenues Generation -- -- -- -- -- Distribution -- -- -- -- -- Equity in subsidiary earnings -- -- -- -- -- ----- ----- ---- ---- --- Total revenues -- -- -- -- -- ----- ----- ---- ---- --- OPERATING EXPENSES: Operation and maintenance -- -- -- -- -- Write-down of project investments -- -- -- -- -- Depreciation and amortization -- -- -- -- -- Fuel expenses -- -- -- -- -- Administrative and general (16) 35 (6) (16) -- ----- ----- ---- ---- --- Total operating expenses (16) 35 (6) (16) -- ----- ----- ---- ---- --- Income from partnerships 81 254 -- -- -- Interest and dividend income -- -- -- -- -- Consulting and O&M fees 677 -- -- -- -- ----- ----- ---- ---- --- Total Income from equity method investments 758 254 -- -- -- ----- ----- ---- ---- --- OPERATING INCOME 774 219 6 16 -- ----- ----- ---- ---- --- OTHER INCOME Foreign currency Translation Gain/Loss -- -- (10) (1) -- Gain on sale - other -- -- -- -- -- Other -- -- -- -- -- Change in derivative fair value -- -- -- -- -- ----- ----- ---- ---- --- Total Other Income -- -- (10) (1) -- ----- ----- ---- ---- --- INTEREST EXPENSE: PSEG Capital Corporation -- -- -- -- -- PSEG Energy Holdings -- -- -- -- -- Other Associated Companies -- -- -- -- -- Other -- 89 -- -- -- Capitalized interest -- -- -- -- -- ----- ----- ---- ---- --- Net interest expense -- 89 -- -- -- ----- ----- ---- ---- --- INCOME BEFORE INCOME TAXES 774 130 (4) 15 -- ----- ----- ---- ---- --- INCOME TAXES: Current 335 84 -- 5 -- Deferred (31) (24) -- -- -- Foreign Taxes -- -- -- -- -- Investment and energy tax credits - net -- -- -- -- -- ----- ----- ---- ---- --- Total income taxes 304 60 -- 5 -- ----- ----- ---- ---- --- MINORITY INTERESTS -- -- -- -- -- ----- ----- ---- ---- --- INCOME FROM CONTINUING OPERATIONS 470 70 (4) 10 -- ----- ----- ---- ---- --- DISCONTINUED OPERATIONS Cumulative Effect of a change in Acct. Principle -- -- -- -- -- Income from Discontinued Operations - Net of Taxes -- -- -- -- -- Gain on Sale of Discontinued Operations - Net of Taxes -- -- -- -- -- ----- ----- ---- ---- --- INCOME FROM DISCONTINUED OPERATIONS -- -- -- -- -- ----- ----- ---- ---- --- NET INCOME $ 470 $ 70 $ (4) $ 10 $-- ===== ===== ==== ==== === PSEG GLOBAL USA CONSOLIDATING STATEMENT OF RETAINED EARNINGS FOR THE YEAR ENDED DECEMBER 31, 2003 (THOUSANDS) PSEG GLOBAL INTERCOMPANY PSEG PSEG USA ELIMINATIONS PSEG PSEG PSEG PROJECT GWF PSEG CONSOL. & RECLASS. USA CONEMAUGH TRACY SERVICES CONSOL. LEASING ----------- ------------ -------- --------- ------- -------- ------- ------- BALANCE JANUARY 1, 2003 $100,384 $ (1,475) $100,384 $(730) $(2,104) $(1,225) $14,791 $(1,689) NET INCOME 66,490 (59,534) 66,490 (79) 698 (3) 2 (2) -------- -------- -------- ----- ------- ------- ------- ------- TOTAL 166,874 (61,009) 166,874 (809) (1,406) (1,228) 14,793 (1,691) -------- -------- -------- ----- ------- ------- ------- ------- DIVIDENDS DECLARED -- -- -- -- -- -- -- -- -------- -------- -------- ----- ------- ------- ------- ------- -------- -------- -------- ----- ------- ------- ------- ------- BALANCE DECEMBER 31, 2003 $166,874 $(61,009) $166,874 $(809) $(1,406) $(1,228) $14,793 $(1,691) ======== ========= ======== ===== ======= ======= ======= ======= PSEG GLOBAL USA CONSOLIDATING STATEMENT OF RETAINED EARNINGS FOR THE YEAR ENDED DECEMBER 31, 2003 (THOUSANDS) PSEG PSEG PSEG PSEG PSEG INDIA PSEG ASIA PSEG DEBLOIS MOUNT HENRIETTA PRIVATE INTERNATIONAL INC. INDIA INVESTMENT CARMEL TURBINE LTD. CEMAS SERVICES CONSOL. INC ---------- ------- --------- ------- -------- ------------- -------- ------- BALANCE JANUARY 1, 2003 $(1,735) $(2,593) $-- $(7,529) $(11,129) $ (9,577) $(14,652) $(1,860) NET INCOME (2) (19) -- (2,065) 5,149 (847) (4) (20) ------- ------- --- ------- -------- -------- -------- ------- TOTAL (1,737) (2,612) -- (9,594) (5,980) (10,424) (14,656) (1,880) ------- ------- --- ------- -------- -------- -------- ------- DIVIDENDS DECLARED -- -- -- -- -- -- -- -- ------- ------- --- ------- -------- -------- -------- ------- ------- ------- --- ------- -------- -------- -------- ------- BALANCE DECEMBER 31, 2003 $(1,737) $(2,612) $-- $(9,594) $ (5,980) $(10,424) $(14,656) $(1,880) ======= ======= === ======= ======== ======== ======== ======= PSEG GLOBAL USA CONSOLIDATING STATEMENT OF RETAINED EARNINGS FOR THE YEAR ENDED DECEMBER 31, 2003 (THOUSANDS) PSEG PSEG PSEG INTERATIONAL PSEG PSEG PSEG PSEG CHILQUINTA PSEG US SERVICES INC NEW HAWAIIAN HAWAIIAN KALAELOA FINANCE SVILUPPO INC CONSOL. HAMPSHIRE MGT INVESTMENT INC LLC SRL ----------- ------------ --------- -------- ---------- -------- ---------- -------- BALANCE JANUARY 1, 2003 $(170) $ 4,573 $25,073 $ 90 $10,278 $1,403 $402 $-- NET INCOME (159) 49,399 4,063 155 2,722 470 70 (4) ----- ------- ------- ---- ------- ------ ---- --- TOTAL (329) 53,972 29,136 245 13,000 1,873 472 (4) ----- ------- ------- ---- ------- ------ ---- --- DIVIDENDS DECLARED -- -- -- -- -- -- -- -- ----- ------- ------- ---- ------- ------ ---- --- ----- ------- ------- ---- ------- ------ ---- --- BALANCE DECEMBER 31, 2003 $(329) $53,972 $29,136 $245 $13,000 $1,873 $472 $(4) ===== ======= ======= ==== ======= ====== ==== === KI PSEG HOLDINGS INC POLSKA CONSOL. ------ ------------ BALANCE JANUARY 1, 2003 $(142) $-- NET INCOME 10 -- ----- --- TOTAL (132) -- ----- --- DIVIDENDS DECLARED -- -- ----- --- ----- --- BALANCE DECEMBER 31, 2003 $(132) $-- ===== === PSEG GLOBAL USA CONSOLIDATING BALANCE SHEET FOR THE YEAR ENDED DECEMBER 31, 2003 (THOUSANDS) PSEG GLOBAL INTERCOMPANY USA ELIMINATIONS PSEG PSEG CONSOL. & RECLASS. USA CONEMAUGH ----------- ------------ ---------- --------- ASSETS CURRENT ASSETS Cash and temporary cash investments $ 18,245 $ -- $ -- $ -- Accounts and Notes receivable: Trade 1,431 -- (21) -- Other 39 -- (101) -- PSE&G -- -- -- -- PSEG -- -- -- -- PSEG Power 76 -- 52 -- PSEG Energy Holdings -- -- -- -- Other associated companies 1,566,702 -- 515,563 582 Notes receivable: Associated companies -- -- -- -- Other -- -- -- -- Inventory -- -- -- -- Interest receivable -- -- -- -- Assets held for sale -- -- -- -- Current Assets of Disc Ops 150 -- -- -- Prepayments 256 -- 154 -- ---------- --------- ---------- ---- Total Current Assets 1,586,899 -- 515,647 582 ---------- --------- ---------- ---- PROPERTY, PLANT AND EQUIPMENT Real estate -- -- -- -- Other -- -- -- -- Furniture and Equipment 185 -- 185 -- Accum. depr. and amortization (143) -- (143) -- Valuation allowances -- -- -- -- ---------- --------- ---------- ---- Property, Plant and Equipment-net 42 -- 42 -- ---------- --------- ---------- ---- INVESTMENTS Subsidiaries 9,782 (825,312) 825,312 -- Capital lease agreements -- -- -- -- General Partnership interests 20,165 -- 2,691 2 Limited Partnership interests 394,059 -- 59,699 -- Corporate joint ventures 223,208 -- 1 -- Securities -- -- -- -- Valuation allowances -- -- -- -- ---------- --------- ---------- ---- Total Investments 647,214 (825,312) 887,703 2 ---------- --------- ---------- ---- OTHER ASSETS Long-term receivables 5,500 -- -- -- Deferred Tax Asset (27) -- (38) -- Derivative Asset 161 -- -- -- Deferred Finance Costs 15,372 -- 636 -- Project Start Up Costs 9,486 -- 9,486 -- Prepaid Pension Costs 1,127 -- 421 -- -- -- -- -- Intangibles 533 -- 13 -- Other 234 -- -- -- ---------- --------- ---------- ---- Total Other Assets 32,386 -- 10,518 -- ---------- --------- ---------- ---- TOTAL ASSETS $2,266,541 $(825,312) $1,413,910 $584 ========== ========= ========== ==== PSEG PSEG PROJECT GWF PSEG TRACY SERVICES CONSOL. LEASING ------- -------- ------- -------- ASSETS CURRENT ASSETS Cash and temporary cash investments $ -- $ -- $ -- $ -- Accounts and Notes receivable: Trade 91 3 -- -- Other -- -- -- -- PSE&G -- -- -- -- PSEG -- -- -- -- PSEG Power -- -- -- -- PSEG Energy Holdings -- -- -- -- Other associated companies 3,593 -- 47,215 41,603 Notes receivable: Associated companies -- -- -- -- Other -- -- -- -- Inventory -- -- -- -- Interest receivable -- -- -- -- Assets held for sale -- -- -- -- Current Assets of Disc Ops -- -- -- -- Prepayments -- -- -- -- ------ ------ ------- ------- Total Current Assets 3,684 3 47,215 41,603 ------ ------ ------- ------- PROPERTY, PLANT AND EQUIPMENT Real estate -- -- -- -- Other -- -- -- -- Furniture and Equipment -- -- -- -- Accum. depr. and amortization -- -- -- -- Valuation allowances -- -- -- -- ------ ------ ------- ------- Property, Plant and Equipment-net -- -- -- -- ------ ------ ------- ------- INVESTMENTS Subsidiaries -- -- -- -- Capital lease agreements -- -- -- -- General Partnership interests -- 7,580 686 (2,671) Limited Partnership interests -- -- -- -- Corporate joint ventures -- -- -- -- Securities -- -- -- -- Valuation allowances -- -- -- -- ------ ------ ------- ------- Total Investments -- 7,580 686 (2,671) ------ ------ ------- ------- OTHER ASSETS Long-term receivables -- -- -- -- Deferred Tax Asset -- -- -- -- Derivative Asset -- -- -- -- Deferred Finance Costs -- -- -- -- Project Start Up Costs -- -- -- -- Prepaid Pension Costs -- -- -- -- -- -- -- -- Intangibles -- -- -- -- Other -- -- -- -- ------ ------ ------- ------- Total Other Assets -- -- -- -- ------ ------ ------- ------- TOTAL ASSETS $3,684 $7,583 $47,901 $38,932 ====== ====== ======= ======= PSEG GLOBAL USA CONSOLIDATING BALANCE SHEET FOR THE YEAR ENDED DECEMBER 31, 2003 (THOUSANDS) PSEG PSEG PSEG INDIA DEBLOIS MOUNT HENRIETTA PRIVATE INVESTMENT CARMEL TURBINE LTD. ---------- ------ --------- ------- ASSETS CURRENT ASSETS Cash and temporary cash investments $-- $-- $-- $ 896 Accounts and Notes receivable: Trade -- -- -- 134 Other -- -- -- 145 PSE&G -- -- -- -- PSEG -- -- -- -- PSEG Power -- -- -- -- PSEG Energy Holdings -- -- -- -- Other associated companies 1 81 2,730 Notes receivable: Associated companies -- -- -- -- Other -- -- -- -- Inventory -- -- -- -- Interest receivable -- -- -- -- Assets held for sale -- -- -- -- Current Assets of Disc Ops -- -- -- -- Prepayments -- -- -- 8 --- ---- --- ------ Total Current Assets 1 81 -- 3,913 --- ---- --- ------ PROPERTY, PLANT AND EQUIPMENT Real estate -- -- -- -- Other -- -- -- -- Furniture and Equipment -- -- -- -- Accum. depr. and amortization -- -- -- -- Valuation allowances -- -- -- -- --- ---- --- ------ Property, Plant and Equipment-net -- -- -- -- --- ---- --- ------ INVESTMENTS Subsidiaries -- -- -- -- Capital lease agreements -- -- -- -- General Partnership interests -- -- -- -- Limited Partnership interests -- 198 -- -- Corporate joint ventures -- -- -- -- Securities -- -- -- -- Valuation allowances -- -- -- -- --- ---- --- ------ Total Investments -- 198 -- -- --- ---- --- ------ OTHER ASSETS Long-term receivables -- -- -- -- Deferred Tax Asset -- -- -- -- Derivative Asset -- -- -- Deferred Finance Costs -- -- -- -- Project Start Up Costs -- -- -- -- Prepaid Pension Costs -- -- -- (56) -- -- -- -- Intangibles -- -- -- -- Other -- -- -- 221 --- ---- --- ------ Total Other Assets -- -- -- 165 --- ---- --- ------ TOTAL ASSETS $ 1 $279 $-- $4,078 === ==== === ====== PSEG PSEG ASIA PSEG INTERNATIONAL INC INDIA CEMAS SERVICES CONSOL. INC ------- ------------- ------- ------ ASSETS CURRENT ASSETS Cash and temporary cash investments $ -- $ -- $ -- $ -- Accounts and Notes receivable: Trade -- 103 -- -- Other -- -- -- 1 PSE&G -- -- -- -- PSEG -- -- -- -- PSEG Power -- -- -- -- PSEG Energy Holdings -- -- -- -- Other associated companies 26,519 11,126 4,026 2,830 Notes receivable: Associated companies -- -- -- -- Other -- -- -- -- Inventory -- -- -- -- Interest receivable -- -- -- -- Assets held for sale -- -- -- -- Current Assets of Disc Ops -- -- -- -- Prepayments -- 9 -- -- ------- ------- ------ ------ Total Current Assets 26,519 11,238 4,026 2,831 ------- ------- ------ ------ PROPERTY, PLANT AND EQUIPMENT Real estate -- -- -- -- Other -- -- -- -- Furniture and Equipment -- -- -- -- Accum. depr. and amortization -- -- -- -- Valuation allowances -- -- -- -- ------- ------- ------ ------ Property, Plant and Equipment-net -- -- -- -- ------- ------- ------ ------ INVESTMENTS Subsidiaries 21 -- -- -- Capital lease agreements -- -- -- -- General Partnership interests -- -- -- -- Limited Partnership interests -- -- -- -- Corporate joint ventures -- -- -- -- Securities -- -- -- -- Valuation allowances -- -- -- -- ------- ------- ------ ------ Total Investments 21 -- -- -- ------- ------- ------ ------ OTHER ASSETS Long-term receivables -- -- -- -- Deferred Tax Asset -- 11 -- -- Derivative Asset -- -- -- -- Deferred Finance Costs -- -- -- -- Project Start Up Costs -- -- -- -- Prepaid Pension Costs -- 762 -- -- -- -- -- -- Intangibles -- 520 -- -- Other -- -- -- -- ------- ------- ------ ------ Total Other Assets -- 1,293 -- -- ------- ------- ------ ------ TOTAL ASSETS $26,540 $12,531 $4,026 $2,831 ======= ======= ====== ====== PSEG GLOBAL USA CONSOLIDATING BALANCE SHEET FOR THE YEAR ENDED DECEMBER 31, 2003 (THOUSANDS) PSEG PSEG INTERATIONAL PSEG PSEG PSEG US SERVICES INC NEW HAWAIIAN HAWAIIAN INC CONSOL. HAMPSHIRE MGT INVESTMENT ----------- ----------- --------- --- ---------- ASSETS CURRENT ASSETS Cash and temporary cash investments $-- $ 17,219 $ -- $ -- $ -- Accounts and Notes receivable: Trade -- 939 -- -- -- Other 1 (8) -- 1 -- PSE&G -- -- -- ---- -- PSEG -- -- -- ---- -- PSEG Power -- 24 -- -- -- PSEG Energy Holdings -- -- -- -- -- Other associated companies 471 890,399 12,138 143 5,181 Notes receivable: Associated companies -- -- -- -- -- Other -- -- -- -- -- Inventory -- -- -- -- -- Interest receivable -- -- -- -- -- Assets held for sale -- -- -- -- -- Current Assets of Disc Ops -- 150 -- -- -- Prepayments -- 85 -- -- -- ---- --------- ------- ------ ------- Total Current Assets 472 908,808 12,138 144 5,181 ---- --------- ------- ------ ------- PROPERTY, PLANT AND EQUIPMENT Real estate -- -- -- -- -- Other -- -- -- -- -- Furniture and Equipment -- -- -- -- -- Accum. depr. and amortization -- -- -- -- -- Valuation allowances -- -- -- -- -- ---- --------- ------- ------ ------- Property, Plant and Equipment-net -- -- -- -- -- ---- --------- ------- ------ ------- INVESTMENTS Subsidiaries -- 9,761 -- -- -- Capital lease agreements -- -- -- -- -- General Partnership interests -- 6,249 4,295 539 -- Limited Partnership interests -- 304,986 -- -- 29,183 Corporate joint ventures -- 220,896 -- -- -- Securities -- -- -- -- -- Valuation allowances -- -- -- -- -- ---- --------- ------- ------ ------- Total Investments -- 541,892 4,295 539 29,183 ---- --------- ------- ------ ------- OTHER ASSETS Long-term receivables -- 5,500 -- -- -- Deferred Tax Asset -- -- -- -- -- Derivative Asset -- -- -- -- -- Deferred Finance Costs -- 14,736 -- -- -- Project Start Up Costs -- -- -- -- -- Prepaid Pension Costs -- -- -- -- -- -- -- -- -- -- Intangibles -- -- -- -- -- Other -- 13 -- -- -- ---- --------- ------- ------ ------- Total Other Assets -- 20,249 -- -- -- ---- ---------- ------- ---- -------- TOTAL ASSETS $472 $1,470,949 $16,433 $683 $ 34,364 ==== ========== ======= ==== ======== PSEG CHILQUINTA PSEG KI KALAELOA FINANCE SVILUPPO PSEG HOLDINGS INC INC LLC SRL POLSK CONSOL -------- ---------- -------- ----- ------------ ASSETS CURRENT ASSETS Cash and temporary cash investments $ -- $ -- $ 68 $ 62 $ -- Accounts and Notes receivable: Trade 189 (7) -- -- -- Other -- -- -- -- PSE&G -- -- -- -- -- PSEG -- -- -- -- -- PSEG Power -- -- -- -- -- PSEG Energy Holdings -- -- -- -- -- Other associated companies 2,053 139 153 156 -- Notes receivable: Associated companies -- -- -- -- -- Other -- -- -- -- -- Inventory -- -- -- -- -- Interest receivable -- -- -- -- -- Assets held for sale -- -- -- -- -- Current Assets of Disc Ops -- -- -- -- -- Prepayments -- -- -- -- -- ------ ------- ---- ---- ---- Total Current Assets 2,242 132 221 218 -- ------ ------- ---- ---- ---- PROPERTY, PLANT AND EQUIPMENT Real estate -- -- -- -- -- Other -- -- -- -- -- Furniture and Equipment -- -- -- -- -- Accum. depr. and amortization -- -- -- -- -- Valuation allowances -- -- -- -- -- ------ ------- ---- ---- ---- Property, Plant and Equipment-net -- -- -- -- -- ------ ------- ---- ---- ---- INVESTMENTS Subsidiaries -- -- -- -- -- Capital lease agreements -- -- -- -- -- General Partnership interests 794 -- -- -- -- Limited Partnership interests (7) -- -- -- -- Corporate joint ventures -- 2,311 -- -- -- Securities -- -- -- -- -- Valuation allowances -- -- -- -- -- ------ ------- ---- ---- ---- Total Investments 787 2,311 -- -- -- ------ ------- ---- ---- ---- OTHER ASSETS Long-term receivables -- -- -- -- -- Deferred Tax Asset -- -- -- -- -- Derivative Asset -- 161 -- -- -- Deferred Finance Costs -- -- -- -- -- Project Start Up Costs -- -- -- -- -- Prepaid Pension Costs -- -- -- -- -- -- -- -- -- -- Intangibles -- -- -- -- -- Other -- -- -- -- -- -- -- -- -- -- ------ ------- ---- ---- ---- Total Other Assets -- 161 -- -- -- ------ ------- ---- ---- ---- $3,029 $ 2,604 $221 $218 $ -- TOTAL ASSETS ====== ======= ==== ==== ==== PSEG GLOBAL USA CONSOLIDATING BALANCE SHEET FOR THE YEAR ENDED DECEMBER 31, 2003 (THOUSANDS) PSEG GLOBAL INTERCOMPANY PSEG PSEG USA ELIMINATIONS PSEG PSEG PSEG PROJECT GWF PSEG CONSOL. & RECLASS. USA CONEMAUGH TRACY SERVICES CONSOL. LEASING ----------- ------------ ---------- --------- ------- -------- ------- ------- LIABILITIES AND STOCKHOLDER'S EQUITY CURRENT LIABILITIES Accounts payable: Trade $ (433) $ -- $ 124 $ -- $ -- $ -- $ -- $ -- Taxes 753 -- 285 226 63 -- 23 -- Other 2,799 -- 1,998 -- -- -- -- -- Interest 2,757 -- -- -- -- -- -- -- Associated companies 885,290 -- 238,120 1,353 5,334 8,008 31,525 9,219 Notes payable: PSEG Capital Corporation -- -- -- -- -- -- -- -- PSEG Energy Holdings 7,342 -- 7,342 -- -- -- -- -- Enterprise Group Development Corp. -- -- -- -- -- -- -- -- Other Associated companies -- -- -- -- -- -- -- -- U.S.Energy Incorporated -- -- -- -- -- -- -- -- Current portion of long-term debt -- -- -- -- -- -- -- -- ---------- --------- ---------- ------ ------- ------- ------- ------- Total Current Liabilities 898,508 -- 247,869 1,579 5,397 8,008 31,548 9,219 ---------- --------- ---------- ------ ------- ------- ------- ------- TOTAL LONG-TERM DEBT 161,600 -- 1,600 -- -- -- -- -- ---------- --------- ---------- ------ ------- ------- ------- ------- DEFERRED CREDITS Deferred income taxes 48,626 -- 10,327 (191) (312) 798 (389) (540) Deferred investment and energy tax credits 6,120 -- 5,840 -- -- -- -- -- Deferred Revenue 13,635 -- -- -- -- -- -- -- Other 2,595 -- 72 -- -- -- -- -- ---------- --------- ---------- ------ ------- ------- ------- ------- Total Deferred Credits 70,976 -- 16,239 (191) (312) 798 (389) (540) ---------- --------- ---------- ------ ------- ------- ------- ------- MINORITY INTEREST 9,761 -- -- -- -- -- -- -- ---------- --------- ---------- ------ ------- ------- ------- ------- STOCKHOLDER'S EQUITY Capital stock 10 (140) 10 5 5 5 5 5 Stock Subs Payable -- -- -- -- -- -- -- -- Contributed capital 981,214 (764,163) 981,214 -- -- -- 1,944 31,939 Retained earnings 166,874 (61,009) 166,874 (809) (1,406) (1,228) 14,793 (1,691) Other Comprehensive Income (6,292) -- 104 -- -- -- -- -- Cumulative Translation Adjustment (16,110) -- -- -- -- -- -- -- ---------- --------- ---------- ------ ------- ------- ------- ------- Total Stockholder's Equity 1,125,696 (825,312) 1,148,202 (804) (1,401) (1,223) 16,742 30,253 ---------- --------- ---------- ------ ------- ------- ------- ------- TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY $2,266,541 $(825,312) $1,413,910 $ 584 $ 3,684 $ 7,583 $47,901 $38,932 ========== ========= ========== ====== ======= ======= ======= ======= PSEG GLOBAL USA CONSOLIDATING BALANCE SHEET FOR THE YEAR ENDED DECEMBER 31, 2003 (THOUSANDS) PSEG PSEG PSEG PSEG PSEG INDIA PSEG ASIA PSEG DEBLOIS MOUNT HENRIETTA PRIVATE INTERNATIONAL INC. INDIA INVESTMENT CARMEL TURBINE LTD. CEMAS SERVICES CONSOL. INC ---------- ------- --------- ------- ------- ------------- -------- ------- LIABILITIES AND STOCKHOLDER'S EQUITY CURRENT LIABILITIES Accounts payable: Trade $ -- $ -- $-- $ (37) $ -- $ (2) $ (203) $ -- Taxes -- 70 -- -- -- (4) -- -- Other -- -- -- (93) -- 207 -- -- Interest -- -- -- -- -- -- -- -- Associated companies 1,732 3,203 -- 3,891 171 20,105 20,799 5,183 Notes payable: PSEG Capital Corporation -- -- -- -- -- -- -- -- PSEG Energy Holdings -- -- -- -- -- -- -- -- Enterprise Group Development Corp. -- -- -- -- -- -- -- -- Other Associated companies -- -- -- -- -- -- -- -- U.S.Energy Incorporated -- -- -- -- -- -- -- -- Current portion of long-term debt -- -- -- -- -- -- -- -- ------- ------- --- ------- ------- -------- -------- ------- Total Current Liabilities 1,732 3,273 -- 3,761 171 20,306 20,596 5,183 ------- ------- --- ------- ------- -------- -------- ------- TOTAL LONG-TERM DEBT -- -- -- -- -- -- -- -- ------- ------- --- ------- ------- -------- -------- ------- DEFERRED CREDITS Deferred income taxes 1 1,202 -- -- 2,200 (746) (5,714) (473) Deferred investment and energy tax credits -- -- -- -- -- -- -- -- Deferred Revenue -- -- -- 18 -- -- -- -- Other -- -- -- -- -- 2,201 -- -- ------- ------- --- ------- ------- -------- -------- ------- Total Deferred Credits 1 1,202 -- 18 2,200 1,455 (5,714) (473) ------- ------- --- ------- ------- -------- -------- ------- MINORITY INTEREST -- -- -- -- -- -- -- -- ------- ------- --- ------- ------- -------- -------- ------- STOCKHOLDER'S EQUITY Capital stock 5 -- -- 100 -- -- -- 1 Stock Subs Payable -- -- -- -- -- -- -- -- Contributed capital -- (1,584) -- 9,793 30,149 1,200 3,800 -- Retained earnings (1,737) (2,612) -- (9,594) (5,980) (10,424) (14,656) (1,880) Other Comprehensive Income -- -- -- -- -- (20) -- -- Cumulative Translation Adjustment -- -- -- -- -- 14 -- -- ------- ------- --- ------- ------- -------- -------- ------- Total Stockholder's Equity (1,732) (4,196) -- 299 24,169 (9,230) (10,856) (1,879) ------- ------- --- ------- ------- -------- -------- ------- TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY $ 1 $ 279 $-- $ 4,078 $26,540 $ 12,531 $ 4,026 $ 2,831 ======= ======= === ======= ======= ======== ======== ======= PSEG GLOBAL USA CONSOLIDATING BALANCE SHEET FOR THE YEAR ENDED DECEMBER 31, 2003 (THOUSANDS) PSEG PSEG INTERNATIONAL PSEG PSEG PSEG US SERVICES INC NEW HAWAILAN HAWAILAN INC CONSOL. HAMPSHIRE MGT INVESTMENT ----------- ------------- --------- -------- ---------- LIABILITIES AND STOCKHOLDER'S EQUITY CURRENT LIABILITIES Accounts payable: Trade $ -- $ (315) $ -- $ -- $ -- Taxes -- (64) -- 4 38 Other 12 675 -- -- -- Interest -- 2,668 -- -- -- Associated companies 781 528,341 4,841 49 1,104 Notes payable: PSEG Capital Corporation -- -- -- -- -- PSEG Energy Holdings -- -- -- -- -- Enterprise Group Development Corp. -- -- -- -- -- Other Associated companies -- -- -- -- -- U.S.Energy Incorporated -- -- -- -- -- Current portion of long-term debt -- -- -- -- -- ----- ---------- -------- ---- ------- Total Current Liabilities 793 531,305 4,841 53 1,142 ----- ---------- -------- ---- ------- TOTAL LONG-TERM DEBT -- 160,000 -- -- -- ----- ---------- -------- ---- ------- DEFERRED CREDITS 7 33,837 471 127 7,889 Deferred income taxes -- -- 280 -- -- Deferred investment and energy tax credits -- 13,617 -- -- -- Deferred Revenue -- 322 -- -- -- ----- ---------- -------- ---- ------- Total Deferred Credits 7 47,776 751 127 7,889 ----- ---------- -------- ---- ------- Minority Interest -- 9,761 -- -- -- ----- ---------- -------- ---- ------- STOCKHOLDER'S EQUITY Capital stock 1 1 5 1 -- Stock Subs Payable -- -- -- -- -- Contributed capital -- 689,481 (18,300) 280 13,435 Retained earnings (329) 53,972 29,136 245 13,000 Other Comprehensive Income -- (5,223) -- (23) (1,102) Cumulative Translation Adjustment -- (16,124) -- -- -- ----- ---------- -------- ---- ------- Total Stockholder's Equity (328) 722,107 10,841 503 25,333 ----- ---------- -------- ---- ------- TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY $ 472 $1,470,949 $ 16,433 $683 $ 34,364 ===== ========== ======== ==== ======== PSEG PSEG CHILQUINTA PSEG KI KALAELOA FINANCE SVILUPPO PSEG HOLDINGS INC INC LLC SRL POLSKA CONSOL. -------- ---------- -------- ------ ------------ LIABILITIES AND STOCKHOLDER'S EQUITY CURRENT LIABILITIES Accounts payable: Trade $ -- $ -- $ -- $ -- $-- Taxes 112 -- -- -- -- Other -- -- -- -- -- Interest -- 89 -- -- -- Associated companies 819 209 153 350 -- Notes payable: PSEG Capital Corporation -- -- -- -- -- PSEG Energy Holdings -- -- -- -- -- Enterprise Group Development Corp. -- -- -- -- -- Other Associated companies -- -- -- -- -- U.S.Energy Incorporated -- -- -- -- -- Current portion of long-term debt -- -- -- -- -- ------- ------ ---- ----- --- Total Current Liabilities 931 298 153 350 -- ------- ------ ---- ----- --- TOTAL LONG-TERM DEBT -- -- -- -- -- ------- ------ ---- ----- --- DEFERRED CREDITS Deferred income taxes 58 74 -- -- -- Deferred investment and energy tax credits -- -- -- -- -- Deferred Revenue -- -- -- -- -- Other -- -- -- -- -- ------- ------ ---- ----- --- Total Deferred Credits 58 74 -- -- -- ------- ------ ---- ----- --- MINORITY INTEREST -- -- -- -- -- ------- ------ ---- ----- --- STOCKHOLDER'S EQUITY Capital stock 1 -- -- -- -- Stock Subs Payable -- -- -- -- -- Contributed capital 194 1,760 72 -- -- Retained earnings 1,873 472 (4) (132) -- Other Comprehensive Income (28) -- -- -- -- Cumulative Translation Adjustment -- -- -- -- -- ------- ------ ---- --- --- Total Stockholder's Equity 2,040 2,232 68 (132) -- ------- ------ ---- ----- --- TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY $ 3,029 $2,604 $221 $ 218 $-- ======= ====== ==== ===== === PSEG INTERNATIONAL INC. CONSOLIDATING STATEMENT OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 2003 (THOUSANDS) PSEG PSEG PSEG INTERNATIONAL INTERCOMPANY PSEG MILBANK AMERICAS PSEG INC ELIMINATIONS INTERNATIONAL INC INC CALIFORNIA CONSOL. & RECLASS. INC CONSOL. CONSOL. CORP ------------- ------------ ------------- ------- -------- ---------- REVENUES: Income from capital lease agreements $ -- $ -- $ -- $ -- $ -- $ -- Unrealized gains (losses) on investments -- -- -- -- -- -- Realized gains (losses) on investments -- -- -- -- -- -- Electric Revenues Generation 53,255 -- -- -- -- 53,255 Distribution -- -- -- -- -- -- Equity in subsidiary earnings -- (50,771) 50,771 -- -- -- ------- -------- ------- ----- ------- ------- Total revenues 53,255 (50,771) 50,771 -- -- 53,255 ------- -------- ------- ----- ------- ------- OPERATING EXPENSES: Operation and maintenance 6,627 -- -- -- -- 6,627 Write-down of project investments -- -- -- -- -- -- Depreciation and amortization 10,416 -- -- -- -- 10,351 Fuel expenses 2,768 -- -- -- -- 2,768 Administrative and general 5,260 -- 13 367 962 1,572 ------- -------- ------- ----- ------- ------- Total operating expenses 25,071 -- 13 367 962 21,318 ------- -------- ------- ----- ------- ------- Income from partnerships 31,760 (22,184) -- -- 9,643 15,624 Interest and dividend income 10,879 (264) -- -- 10,942 103 Consulting and O&M fees 247 -- -- -- 245 2 ------- -------- ------- ----- ------- ------- Total Income from equity method investments 42,886 (22,448) -- -- 20,830 15,729 ------- -------- ------- ----- ------- ------- OPERATING INCOME 71,070 (73,219) 50,758 (367) 19,868 47,666 ------- -------- ------- ----- ------- ------- OTHER INCOME Foreign currency Translation Gain/Loss 315 -- -- 1 4 -- Other (594) -- -- -- -- (594) Gain on Sale (44) -- -- -- -- -- ------- -------- ------- ----- -------- ------- Total Other Income (323) -- -- 1 4 (594) ------- -------- ------- ----- -------- ------- INTEREST EXPENSE: PSEG Capital Corporation -- -- -- -- -- -- PSEG Energy Holdings -- -- -- -- -- -- Other Associated Companies -- -- -- -- -- -- Other 13,795 (264) -- 7 11,788 2,261 Capitalized interest -- -- -- -- -- -- ------- -------- ------- ----- ------- ------- Net interest expense 13,795 (264) -- 7 11,788 2,261 ------- -------- ------- ----- ------- ------- INCOME BEFORE INCOME TAXES 56,952 (72,955) 50,758 (373) 8,084 44,811 ------- -------- ------- ----- ------- ------- INCOME TAXES: Current (27,627) -- 486 (39) (20,771) (3,706) Deferred 28,055 -- 873 -- 9,854 9,893 Foreign Taxes (75) -- -- -- -- -- Investment and energy tax credits - net -- -- -- -- -- -- ------- -------- ------- ----- ------- ------- Total income taxes 353 -- 1,359 (39) (10,917) 6,187 ------- -------- ------- ----- ------- ------- MINORITY INTERESTS 7,445 7,445 -- -- -- -- ------- -------- ------- ----- ------- ------- INCOME FROM CONTINUING OPERATIONS 49,154 (80,400) 49,399 (334) 19,001 38,624 ------- -------- ------- ----- ------- ------- DISCONTINUED OPERATIONS Cumulative Effect of a change in the Acct. Principle -- -- -- -- -- -- Income from Discontinued Operations - Net of Taxes 245 -- -- 150 -- -- Gain on Sale of Discontinued Operations - Net of Taxes -- -- -- -- -- -- ------- -------- ------- ----- -------- ------- INCOME FROM DISCONTINUED OPERATIONS 245 -- -- 150 -- -- ------- -------- ------- ----- -------- ------- NET INCOME $49,399 $(80,400) $49,399 $(184) $ 19,001 $38,624 ======= ======== ======= ===== ======== ======= PSEG PSEG BERMUDA PSEG NORTH PSEG AMERICAS HOLDINGS PSEG ELCHO SERVICES BAY POWER TRACY TURBINE SERVICES II LTD RADES, INC INC LLC INC INC CONSOL. ---------- -------------- ------------------------------------------------ REVENUES: Income from capital lease agreements $-- $ -- $-- $-- $ -- $ -- Unrealized gains (losses) on investments -- -- -- -- -- -- Realized gains (losses) on investments -- -- -- -- -- -- Electric Revenues Generation -- -- -- -- -- -- Distribution -- -- -- -- -- -- Equity in subsidiary earnings -- -- -- -- -- -- --- ---- --- --- ---- ------- Total revenues -- -- -- -- -- -- --- ---- --- --- ---- ------- OPERATING EXPENSES: Operation and maintenance -- -- -- -- -- -- Write-down of project investments -- -- -- -- -- -- Depreciation and amortization -- -- -- -- -- -- Fuel expenses -- -- -- -- -- -- Administrative and general -- 20 -- -- 57 -- --- ---- --- --- ---- ------- Total operating expenses -- 20 -- -- 57 -- --- ---- --- --- ---- ------- Income from partnerships -- -- -- -- -- -- Interest and dividend income -- -- -- -- -- -- Consulting and O&M fees -- -- -- -- -- -- --- ---- --- --- ---- ------- Total Income from equity method investments -- -- -- -- -- -- --- ---- --- --- ---- ------- OPERATING INCOME -- (20) -- -- (57) -- --- ---- --- --- ---- ------- OTHER INCOME Foreign currency Translation Gain/Loss -- -- -- -- 6 -- Other -- -- -- -- -- -- Gain on Sale -- -- -- -- -- -- --- ---- --- --- ---- ------- Total Other Income -- -- -- -- 6 -- --- ---- --- --- ---- ------- INTEREST EXPENSE: PSEG Capital Corporation -- -- -- -- -- -- PSEG Energy Holdings -- -- -- -- -- -- Other Associated Companies -- -- -- -- -- -- Other -- -- -- -- -- 3 Capitalized interest -- -- -- -- -- -- --- ---- --- --- ---- ------- Net interest expense -- -- -- -- -- 3 --- ---- --- --- ---- ------- INCOME BEFORE INCOME TAXES -- (20) -- -- (51) (3) --- ---- --- --- ---- ------- INCOME TAXES: Current -- -- -- -- (61) (106) Deferred -- -- -- -- 43 2,555 Foreign Taxes -- -- -- -- (75) -- Investment and energy tax credits - net -- -- -- -- -- --- ---- --- --- ---- ------- Total income taxes -- -- -- -- (93) 2,449 --- ---- --- --- ---- ------- MINORITY INTERESTS -- -- -- -- -- -- --- ---- --- --- ---- ------- INCOME FROM CONTINUING OPERATIONS -- (20) -- -- 42 (2,452) --- ---- --- --- ---- ------- DISCONTINUED OPERATIONS Cumulative Effect of a change in the Acct. Principle -- -- -- -- -- -- Income from Discontinued Operations - Net of Taxes -- -- -- -- -- -- Gain on Sale of Discontinued Operations - Net of Taxes -- -- -- -- -- -- --- ---- --- --- ---- ------- INCOME FROM DISCONTINUED OPERATIONS -- -- -- -- -- -- --- ---- --- --- ---- ------- NET INCOME $-- $(20) $-- $-- $ 42 $(2,452) === ==== === === ==== ======= PSEG INTERNATIONAL INC. CONSOLIDATING STATEMENT OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 2003 (THOUSANDS) PSEG PSEG PSEG OPERACIONES PSEG PSEG CALIFORNIA III HENRIETTA II EUROPE LTD CALIFORNIA II CORP TURBINE INC CONSOL. CONSOL. CORP -------------- ----------- ----------- ---------- ------------- REVENUES: Income from capital lease agreements $ -- $-- $ -- $ -- $ -- Unrealized gains (losses) on investments -- -- -- -- -- Realized gains (losses) on investments -- -- -- -- -- Electric Revenues Generation -- -- -- -- -- Distribution -- -- -- -- -- Equity in subsidiary earnings -- -- -- -- -- ------ --- ------- ------- ------- Total revenues -- -- -- -- -- ------ --- ------- ------- ------- OPERATING EXPENSES: Operation and maintenance -- -- -- -- -- Write-down of project investments -- -- -- -- -- Depreciation and amortization -- -- -- 65 -- Fuel expenses -- -- -- -- -- Administrative and general -- -- -- 2,258 -- ------ --- ------- ------- ------- Total operating expenses -- -- -- 2,323 -- ------ --- ------- ------- ------- Income from partnerships 4,605 -- 19,467 -- 4,605 Interest and dividend income 49 -- -- -- 49 Consulting and O&M fees -- -- -- -- -- ------ --- ------- ------- ------- Total Income from equity method investments 4,654 -- 19,467 -- 4,654 ------ --- ------- ------- ------- OPERATING INCOME 4,654 -- 19,467 (2,323) 4,654 ------ --- ------- ------- ------- OTHER INCOME Foreign currency Translation Gain/Loss -- -- 356 (52) -- Other -- -- -- -- -- Gain on Sale -- -- -- (44) -- ------ --- ------- ------- ------- Total Other Income -- -- 356 (96) -- ------ --- ------- ------- ------- INTEREST EXPENSE: PSEG Capital Corporation -- -- -- -- -- PSEG Energy Holdings -- -- -- -- -- Other Associated Companies -- -- -- -- -- Other -- -- -- -- -- Capitalized interest -- -- -- -- -- ------ --- ------- ------- ------- Net interest expense -- -- -- -- -- ------ --- ------- ------- ------- INCOME BEFORE INCOME TAXES 4,654 -- 19,823 (2,419) 4,654 ------ --- ------- ------- ------- INCOME TAXES: Current (423) -- -- (2,585) (423) Deferred 2,319 -- -- 199 2,319 Foreign Taxes -- -- -- -- -- Investment and energy tax credits - net -- -- -- -- -- ------ --- ------- ------- ------- Total income taxes 1,896 -- -- (2,386) 1,896 ------ --- ------- ------- ------- MINORITY INTERESTS -- -- -- -- -- ------ --- ------- ------- ------- INCOME FROM CONTINUING OPERATIONS 2,758 -- 19,823 (33) 2,758 ------ --- ------- ------- ------- DISCONTINUED OPERATIONS Cumulative Effect of a change in the Acct. Principle -- -- -- -- -- Income from Discontinued Operations - Net of Taxes -- -- -- 95 -- Gain on Sale of Discontinued Operations - Net of Taxes -- -- -- -- -- ------ --- ------- ------- ------- INCOME FROM DISCONTINUED OPERATIONS -- -- -- 95 -- ------ --- ------- ------- ------- NET INCOME $2,758 $-- $19,823 $ 62 $2,758 ====== === ======= ======= ======= PSEG PSEG PSEG PSEG PONTIANAK CHINA PHILIPPINE ZHOU LTD HOLDINGS HOLDINGS KOU POWER (Malaysia) LTD LLC LTD CONSOL. -------- ---------- --------- ---------- REVENUES: Income from capital lease agreements $-- $-- $-- $-- Unrealized gains (losses) on investments -- -- -- -- Realized gains (losses) on investments -- -- -- -- Electric Revenues Generation -- -- -- -- Distribution -- -- -- -- Equity in subsidiary earnings -- -- -- -- ---- --- --- --- Total revenues -- -- -- -- ---- --- --- --- OPERATING EXPENSES: Operation and maintenance -- -- -- -- Write-down of project investments -- -- -- -- Depreciation and amortization -- -- -- -- Fuel expenses -- -- -- -- Administrative and general 11 -- -- -- ---- --- --- --- Total operating expenses 11 -- -- -- ---- --- --- --- Income from partnerships -- -- -- -- Interest and dividend income -- -- -- -- Consulting and O&M fees -- -- -- -- ---- --- --- --- Total Income from equity method investments -- -- -- -- ---- --- --- --- OPERATING INCOME (11) -- -- -- ---- --- --- --- OTHER INCOME Foreign currency Translation Gain/Loss -- -- -- -- Other -- -- -- -- Gain on Sale -- -- -- -- ---- --- --- --- Total Other Income -- -- -- -- ---- --- --- --- INTEREST EXPENSE: PSEG Capital Corporation -- -- -- -- PSEG Energy Holdings -- -- -- -- Other Associated Companies -- -- -- -- Other -- -- -- -- Capitalized interest -- -- -- -- ---- --- --- --- Net interest expense -- -- -- -- ---- --- --- --- INCOME BEFORE INCOME TAXES (11) -- -- -- ---- --- --- --- INCOME TAXES: Current -- -- -- -- Deferred -- -- -- -- Foreign Taxes -- -- -- -- Investment and energy tax credits - net -- -- -- -- ---- --- --- --- Total income taxes -- -- -- -- ---- --- --- --- MINORITY INTERESTS -- -- -- -- ---- --- --- --- INCOME FROM CONTINUING OPERATIONS (11) -- -- -- ---- --- --- --- DISCONTINUED OPERATIONS Cumulative Effect of a change in the Acct. Principle -- -- -- -- Income from Discontinued Operations - Net of Taxes -- -- -- -- Gain on Sale of Discontinued Operations - Net of Taxes -- -- -- -- ---- --- --- --- INCOME FROM DISCONTINUED OPERATIONS -- -- -- -- ---- --- --- --- NET INCOME $(11) $-- $-- $-- ==== === === === PSEG INTERNATIONAL INC. CONSOLIDATING STATEMENT OF RETAINED EARNINGS FOR THE YEAR ENDED DECEMBER 31, 2003 (THOUSANDS) PSEG PSEG PSEG INTERNATIONAL INTERCOMPANY PSEG MILBANK AMERICAS PSEG INC ELIMINATIONS INTERNATIONAL INC INC CALIFORNIA PSEG CONSOL & RECLASS. INC CONSOL. CONSOL. CORP RADES, INC ------------- ------------ ------------- ------- -------- ---------- ---------- BALANCE JANUARY 1, 2003 $ 4,573 $ (4,553) $ 4,573 $ (5) $(1,649) $16,715 $-- NET INCOME 49,399 (80,400) 49,399 (184) 19,001 38,624 -- ------- -------- ------- ----- ------- ------- --- TOTAL 53,972 (84,953) 53,972 (189) 17,352 55,339 -- ------- -------- ------- ----- ------- ------- --- DIVIDENDS DECLARED -- -- -- -- -- -- -- ------- -------- ------- ----- ------- ------- --- ------- -------- ------- ----- ------- ------- --- BALANCE DECEMBER 31, 200 3 $53,972 $(84,953) $53,972 $(189) $17,352 $55,339 $-- ======= ======== ======= ===== ======= ======= === PSEG PSEG BERMUDA PSEG NORTH PSEG AMERICAS HOLDINGS ELCHO SERVICES BAY POWER TRACY TURBINE SERVICES II LTD INC LLC INC INC CONSOL. -------------- --------- ------------- -------- -------- BALANCE JANUARY 1, 2003 $ -- $-- $-- $(3,641) $(6,718) NET INCOME (20) -- -- 42 (2,452) ---- --- --- ------- ------- TOTAL (20) -- -- (3,599) (9,170) ---- --- --- ------- ------- DIVIDENDS DECLARED -- -- -- -- -- ---- --- --- ------- ------- ---- --- --- ------- ------- BALANCE DECEMBER 31, 2003 $(20) $-- $-- $(3,599) $(9,170) ==== === === ======= ======= PSEG INTERNATIONAL INC. CONSOLIDATING STATEMENT OF RETAINED EARNINGS FOR THE YEAR ENDED DECEMBER 31, 2003 (THOUSANDS) PSEG PSEG PSEG PSEG PSEG OPERACIONES PSEG PSEG CHINA PHILIPPINE CALIFORNIA III HENRIETTA II EUROPE LTD CALIFORNIA II HOLDINGS HOLDINGS CORP TURBINE INC CONSOL. CONSOL. CORP LTD LLC -------------- ----------- ----------- ---------- ------------- -------- ---------- BALANCE JANUARY 1, 2003 $ 64 $(7) $17,463 $(11,141) $ 64 $ (4) $(4,126) NET INCOME 2,758 -- 19,823 62 2,758 (11) -- ------ --- ------- -------- ------ ---- ------- TOTAL 2,822 (7) 37,286 (11,079) 2,822 (15) (4,126) ------ --- ------- -------- ------ ---- ------- DIVIDENDS DECLARED -- -- -- -- -- -- -- ------ --- ------- -------- ------ ---- ------- ------ --- ------- -------- ------ ---- ------- BALANCE DECEMBER 31, 2003 $2,822 $(7) $37,286 $(11,079) $2,822 $(15) $(4,126) ====== === ======= ======== ====== ==== ======= PSEG PSEG PONTIANAK ZHOU LTD KOU POWER (Malaysia) LTD CONSOL. --------- ---------- BALANCE JANUARY 1, 2003 $(224) $(2,238) NET INCOME -- -- ----- ------- TOTAL (224) (2,238) ----- ------- DIVIDENDS DECLARED -- -- ----- ------- ----- ------- BALANCE DECEMBER 31, 2003 $(224) $(2,238) ===== ======= PSEG INTERNATIONAL INC. CONSOLIDATING BALANCE SHEET FOR THE YEAR ENDED DECEMBER 31, 2003 (THOUSANDS) PSEG PSEG PSEG INTERNATIONAL INTERCOMPANY PSEG MILBANK AMERICAS PSEG INC ELIMINATIONS INTERNATIONAL INC INC CALIFORNIA CONSOL. & RECLASS. INC CONSOL. CONSOL. CORP ------------- ------------ ------------- ------- -------- ---------- ASSETS CURRENT ASSETS Cash and temporary cash investments $ 17,219 $ -- $ 5 $ 886 $ 5,847 $ -- Accounts and Notes receivable: Trade 939 -- -- 637 1 142 Other (8) -- (36) -- (1) -- PSE&G -- -- -- -- -- -- PSEG -- -- -- -- -- -- PSEG Power 24 -- -- -- 24 -- PSEG Energy Holdings -- -- -- -- -- -- Other associated companies 890,399 -- 223,320 1,481 234,502 51,322 Notes receivable: Associated companies -- -- -- -- -- -- Assets Held for Sale -- -- -- -- -- -- Current Assets of Disc Ops 150 -- -- -- -- -- Other -- -- -- -- -- -- Inventory-Materials -- -- -- -- -- -- Interest receivable -- -- -- -- -- -- Prepayments 85 -- -- 85 -- -- ---------- --------- -------- ------ -------- -------- Total Current Assets 908,808 -- 223,289 3,089 240,373 51,464 ---------- --------- -------- ------ -------- -------- PROPERTY, PLANT AND EQUIPMENT Real estate -- -- -- -- -- -- Other -- -- -- -- -- -- Accum. depr. and amortization -- -- -- -- -- -- Valuation allowances -- -- -- -- -- -- ---------- --------- -------- ------ -------- -------- Property, Plant and Equipment-net -- -- -- -- -- -- ---------- --------- -------- ------ -------- -------- INVESTMENTS Subsidiaries 9,761 (544,538) 544,538 -- 9,761 -- Capital lease agreements -- -- -- -- -- -- General Partnership interests 6,249 -- -- -- 6,249 -- Limited Partnership interests 304,986 -- -- -- 220,348 61,432 Corporate joint ventures 220,896 -- -- -- 185,696 -- Securities -- -- -- -- -- -- Valuation allowances -- -- -- -- -- -- ---------- --------- -------- ------ -------- -------- Total Investments 541,892 (544,538) 544,538 -- 422,054 61,432 ---------- --------- -------- ------ -------- -------- OTHER ASSETS Long-term receivables 5,500 -- -- -- 5,500 -- Deferred Tax Asset -- -- -- -- -- -- Deferred Finance Costs 14,736 -- -- -- 14,736 -- Other 13 -- -- 10 -- -- ---------- --------- -------- ------ -------- -------- Total Other Assets 20,249 -- -- 10 20,236 -- ---------- --------- -------- ------ -------- -------- TOTAL ASSETS $1,470,949 $(544,538) $767,827 $3,099 $682,663 $112,896 ========== ========= ======== ====== ======== ======== PSEG PSEG BERMUDA PSEG NORTH PSEG AMERICAS HOLDINGS PSEG ELCHO SERVICES BAY POWER TRACY TURBINE SERVICES II LTD RADES, INC INC LLC INC INC CONSOL. ---------- -------------- --------- ------------- -------- -------- ASSETS CURRENT ASSETS Cash and temporary cash investments $ -- $152 $-- $ -- $ 1 $ 2 Accounts and Notes receivable: Trade -- 81 -- -- 29 -- Other -- -- -- 4 -- -- PSE&G -- -- -- -- -- -- PSEG -- -- -- -- -- -- PSEG Power -- -- -- -- -- -- PSEG Energy Holdings -- -- -- -- -- -- Other associated companies -- -- -- -- 968 273 Notes receivable: Associated companies -- -- -- -- -- -- Assets Held for Sale -- -- -- -- -- -- Current Assets of Disc Ops 150 -- -- -- -- -- Other -- -- -- -- -- -- Inventory-Materials -- -- -- -- -- -- Interest receivable -- -- -- -- -- -- Prepayments -- -- -- -- -- -- ---- ---- --- --- ---- ---- Total Current Assets 150 233 -- 4 998 275 ---- ---- --- --- ---- ---- PROPERTY, PLANT AND EQUIPMENT Real estate -- -- -- -- -- -- Other -- -- -- -- -- -- Accum. depr. and amortization -- -- -- -- -- -- Valuation allowances -- -- -- -- -- -- ---- ---- --- --- ---- ---- Property, Plant and Equipment-net -- -- -- -- -- -- ---- ---- --- --- ---- ---- INVESTMENTS Subsidiaries -- -- -- -- -- -- Capital lease agreements -- -- -- -- -- -- General Partnership interests -- -- -- -- -- -- Limited Partnership interests -- -- -- -- -- -- Corporate joint ventures -- -- -- -- -- -- Securities -- -- -- -- -- -- Valuation allowances -- -- -- -- -- -- ---- ---- --- --- ---- ---- Total Investments -- -- -- -- -- -- ---- ---- --- --- ---- ---- OTHER ASSETS Long-term receivables -- -- -- -- -- -- Deferred Tax Asset -- -- -- -- -- -- Deferred Finance Costs -- -- -- -- -- -- Other -- -- -- -- -- -- ---- ---- --- --- ---- ---- Total Other Assets -- -- -- -- -- -- ---- ---- --- --- ---- ---- TOTAL ASSETS $150 $233 $-- $ 4 $998 $275 ==== ==== === === ==== ==== PSEG INTERNATIONAL INC. CONSOLIDATING BALANCE SHEET FOR THE YEAR ENDED DECEMBER 31, 2003 (THOUSANDS) PSEG PSEG PSEG OPERACIONES PSEG PSEG CALIFORNIA III HENRIETTA II EUROPE LTD CALIFORNIA II CORP TURBINE INC CONSOL. CONSOL. CORP -------------- ----------- ----------- ---------- ------------- ASSETS CURRENT ASSETS Cash and temporary cash investments $ -- $-- $ 10,051 $ 275 $ -- Accounts and Notes receivable: Trade -- -- -- 49 -- Other -- 1 -- -- -- PSE&G -- -- -- -- -- PSEG -- -- -- -- -- PSEG Power -- -- -- -- -- PSEG Energy Holdings -- -- -- -- -- Other associated companies 19,564 9 311,014 27,319 19,564 Notes receivable: Associated companies -- -- -- -- -- Assets Held for Sale -- -- -- -- -- Current Assets of Disc Ops -- -- -- -- -- Other -- -- -- -- -- Inventory-Materials -- -- -- -- -- Interest receivable -- -- -- -- -- Prepayments -- -- -- -- -- ------- --- -------- ------- ------- Total Current Assets 19,564 10 321,065 27,643 19,564 ------- --- -------- ------- ------- PROPERTY, PLANT AND EQUIPMENT Real estate -- -- -- -- -- Other -- -- -- -- -- Accum. depr. and amortization -- -- -- -- -- Valuation allowances -- -- -- -- -- ------- --- -------- ------- ------- Property, Plant and Equipment-net -- -- -- -- -- ------- --- -------- ------- ------- INVESTMENTS Subsidiaries -- -- -- -- -- Capital lease agreements -- -- -- -- -- General Partnership interests -- -- -- -- -- Limited Partnership interests 11,603 -- -- -- 11,603 Corporate joint ventures -- -- 32,100 -- -- Securities -- -- -- -- -- Valuation allowances -- -- -- -- -- ------- --- -------- ------- ------- Total Investments 11,603 -- 32,100 -- 11,603 ------- --- -------- ------- ------- OTHER ASSETS Long-term receivables -- -- -- -- -- Deferred Tax Asset -- -- -- -- -- Deferred Finance Costs -- -- -- -- -- Other -- -- -- 3 -- ------- --- -------- ------- ------- Total Other Assets -- -- -- 3 -- ------- --- -------- ------- ------- TOTAL ASSETS $31,167 $10 $353,165 $27,646 $31,167 ======= === ======== ======= ======= PSEG PSEG PSEG PSEG PONTIANAK CHINA PHILIPPINE ZHOU LTD HOLDINGS HOLDINGS KOU POWER (Malaysia) LTD LTD LTD CONSOL. -------- ---------- --------- ---------- ASSETS CURRENT ASSETS Cash and temporary cash investments $-- $ -- $-- $ -- Accounts and Notes receivable: Trade -- -- -- -- Other 12 -- 12 -- PSE&G -- -- -- -- PSEG -- -- -- -- PSEG Power -- -- -- -- PSEG Energy Holdings -- -- -- -- Other associated companies -- -- -- 1,063 Notes receivable: Associated companies -- -- -- -- Assets Held for Sale -- -- -- -- Current Assets of Disc Ops -- -- -- -- Other -- -- -- -- Inventory-Materials -- -- -- -- Interest receivable -- -- -- -- Prepayments -- -- -- -- --- ------ --- ------ Total Current Assets 12 -- 12 1,063 --- ------ --- ------ PROPERTY, PLANT AND EQUIPMENT Real estate -- -- -- -- Other -- -- -- -- Accum. depr. and amortization -- -- -- -- Valuation allowances -- -- -- -- --- ------ --- ------ Property, Plant and Equipment-net -- -- -- -- --- ------ --- ------ INVESTMENTS Subsidiaries -- -- -- -- Capital lease agreements -- -- -- -- General Partnership interests -- -- -- -- Limited Partnership interests -- -- -- -- Corporate joint ventures -- 3,100 -- -- Securities -- -- -- -- Valuation allowances -- -- -- -- --- ------ --- ------ Total Investments -- 3,100 -- -- --- ------ --- ------ OTHER ASSETS Long-term receivables -- -- -- -- Deferred Tax Asset -- -- -- -- Deferred Finance Costs -- -- -- -- Other -- -- -- -- --- ------ --- ------ Total Other Assets -- -- -- -- --- ------ --- ------ TOTAL ASSETS $12 $3,100 $12 $1,063 === ====== === ====== PSEG INTERNATIONAL INC. CONSOLIDATING BALANCE SHEET FOR THE YEAR ENDED DECEMBER 31, 2003 (THOUSANDS) PSEG PSEG PSEG INTERNATIONAL INTERCOMPANY PSEG MILBANK AMERICAS PSEG INC ELIMINATIONS INTERNATIONAL INC INC CALIFORNIA CONSOL. & RECLASS. INC CONSOL. CONSOL. CORP ------------- ------------ ------------- ------- -------- ---------- LIABILITIES AND STOCKHOLDER'S EQUITY CURRENT LIABILITIES Accounts payable: Trade $ (315) $ -- $ -- $ -- $ 29 $ -- Taxes (64) -- (1) -- -- 239 Other 675 -- -- 675 -- -- Interest 2,668 -- -- -- 2,668 -- Associated companies 528,341 -- 35,132 540 190,436 28,558 Notes payable: PSEG Capital Corporation -- -- -- -- -- -- Enterprise Capital Funding Corp. -- -- -- -- -- -- Enterprise Group Development Corp. -- -- -- -- -- -- Enterprise Diversified Holdings Inc. -- -- -- -- -- -- U.S.Energy Incorporated -- -- -- -- -- -- Current portion of long-term debt -- -- -- -- -- -- ---------- --------- -------- ------ -------- -------- Total Current Liabilities 531,305 -- 35,131 1,215 193,133 28,797 ---------- --------- -------- ------ -------- -------- TOTAL LONG-TERM DEBT 160,000 -- -- -- 160,000 -- ---------- --------- -------- ------ -------- -------- DEFERRED CREDITS Deferred income taxes 33,837 -- 828 -- 17,950 15,505 Deferred investment and energy tax credits -- -- -- -- -- -- Deferred Revenue 13,617 -- -- -- 12,284 877 Other 322 -- -- 322 -- -- ---------- --------- -------- ------ -------- -------- Total Deferred Credits 47,776 -- 828 322 30,234 16,382 ---------- --------- -------- ------ -------- -------- MINORITY INTEREST 9,761 9,761 -- -- -- -- ---------- --------- -------- ------ -------- -------- STOCKHOLDER'S EQUITY Capital stock 1 (29) 1 -- -- -- Stock Subs Payable -- -- -- -- -- -- Contributed capital 689,481 (490,663) 699,242 1,751 286,816 12,729 Retained earnings 53,972 (84,954) 53,972 (189) 17,352 55,339 Other Comprehensive Income (5,223) 5,223 (5,223) -- (4,872) (351) Cumulative Translation Adjustment (16,124) 16,124 (16,124) -- -- -- ---------- --------- -------- ------ -------- -------- Total Stockholder's Equity 722,107 (554,299) 731,868 1,562 299,296 67,717 ---------- --------- -------- ------ -------- -------- TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY $1,470,949 $(544,538) $767,827 $3,099 $682,663 $112,896 ========== ========= ======== ====== ======== ======== PSEG PSEG BERMUDA PSEG NORTH PSEG AMERICAS HOLDINGS PSEG ELCHO SERVICES BAY POWER TRACY TURBINE SERVICES II LTD RADES, INC INC LLC INC INC CONSOL. ---------- -------------- --------- ------------- -------- -------- LIABILITIES AND STOCKHOLDER'S EQUITY CURRENT LIABILITIES Accounts payable: Trade $ -- $ -- $-- $-- $ -- $ -- Taxes -- -- -- -- -- -- Other -- -- -- -- -- -- Interest -- -- -- -- -- -- Associated companies 150 253 -- 5,835 9,631 Notes payable: PSEG Capital Corporation -- -- -- -- -- -- Enterprise Capital Funding Corp. -- -- -- -- -- -- Enterprise Group Development Corp. -- -- -- -- -- -- Enterprise Diversified Holdings Inc. -- -- -- -- -- -- U.S.Energy Incorporated -- -- -- -- -- -- Current portion of long-term debt -- -- -- -- -- -- ---- ---- --- --- ------- ------- Total Current Liabilities 150 253 -- -- 5,835 9,631 ---- ---- --- --- ------- ------- TOTAL LONG-TERM DEBT -- -- -- -- -- -- ---- ---- --- --- ------- ------- DEFERRED CREDITS Deferred income taxes -- -- -- -- (1,238) (186) Deferred investment and energy tax credits -- -- -- -- -- -- Deferred Revenue -- -- -- -- -- -- Other -- -- -- -- -- -- ---- ---- --- --- ------- ------- Total Deferred Credits -- -- -- -- (1,238) (186) ---- ---- --- --- ------- ------- MINORITY INTEREST -- -- -- -- -- -- ---- ---- --- --- ------- ------- STOCKHOLDER'S EQUITY Capital stock -- -- -- 4 -- -- Stock Subs Payable -- -- -- -- -- -- Contributed capital -- -- -- -- -- -- Retained earnings -- (20) -- -- (3,599) (9,170) Other Comprehensive Income -- -- -- -- -- -- Cumulative Translation Adjustment -- -- -- -- -- -- ---- ---- --- --- ------- ------- Total Stockholder's Equity -- (20) -- 4 (3,599) (9,170) ---- ---- --- --- ------- ------- TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY $150 $233 $-- $ 4 $ 998 $ 275 ==== ==== === === ======= ======= PSEG INTERNATIONAL INC. CONSOLIDATING BALANCE SHEET FOR THE YEAR ENDED DECEMBER 31, 2003 (THOUSANDS) PSEG PSEG PSEG OPERACIONES PSEG PSEG CALIFORNIA III HENRIETTA II EUROPE LTD CALIFORNIA II CORP TURBINE INC CONSOL. CONSOL. CORP -------------- ----------- ----------- ---------- ------------- LIABILITIES AND STOCKHOLDER'S EQUITY CURRENT LIABILITIES Accounts payable: Trade $ -- $-- $ -- $ (344) $ -- Taxes (91) -- -- (120) (91) Other -- -- -- -- -- Interest -- -- -- -- -- Associated companies 23,435 16 153,220 53,024 23,435 Notes payable: PSEG Capital Corporation -- -- -- -- -- Enterprise Capital Funding Corp. -- -- -- -- -- Enterprise Group Development Corp. -- -- -- -- -- Enterprise Diversified Holdings Inc. -- -- -- -- -- U.S.Energy Incorporated -- -- -- -- -- Current portion of long-term debt -- -- -- -- -- ------- --- -------- -------- ------- Total Current Liabilities 23,344 16 153,220 52,560 23,344 ------- --- -------- -------- ------- TOTAL LONG-TERM DEBT -- -- -- -- -- ------- --- -------- -------- ------- DEFERRED CREDITS Deferred income taxes 1,677 -- -- (260) 1,677 Deferred investment and energy tax credits -- -- -- -- -- Deferred Revenue 228 -- -- -- 228 Other -- -- -- -- -- ------- --- -------- -------- ------- Total Deferred Credits 1,905 -- -- (260) 1,905 ------- --- -------- -------- ------- MINORITY INTEREST -- -- -- -- -- ------- --- -------- -------- ------- STOCKHOLDER'S EQUITY Capital stock -- 1 -- -- -- Stock Subs Payable -- -- -- -- -- Contributed capital 3,096 -- 162,659 -- 3,096 Retained earnings 2,822 (7) 37,286 (11,079) 2,822 Other Comprehensive Income -- -- -- -- -- Cumulative Translation Adjustment -- -- -- (13,575) -- ------- --- -------- -------- ------- Total Stockholder's Equity 5,918 (6) 199,945 (24,654) 5,918 ------- --- -------- -------- ------- TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY $31,167 $10 $353,165 $ 27,646 $31,167 ======= === ======== ======== ======= PSEG PSEG PSEG PSEG PONTIANAK CHINA PHILIPPINE ZHOU LTD HOLDINGS HOLDINGS KOU POWER (Malaysia) LTD LLC LTD CONSOL. -------- ---------- --------- ---------- LIABILITIES AND STOCKHOLDER'S EQUITY CURRENT LIABILITIES Accounts payable: Trade $ -- $ -- $ -- $ -- Taxes -- -- -- -- Other -- -- -- -- Interest -- -- -- -- Associated companies 15 1,135 225 3,301 Notes payable: PSEG Capital Corporation -- -- -- -- Enterprise Capital Funding Corp. -- -- -- -- Enterprise Group Development Corp. -- -- -- -- Enterprise Diversified Holdings Inc. -- -- -- -- U.S.Energy Incorporated -- -- -- -- Current portion of long-term debt -- -- -- -- ---- ------- ----- ------- Total Current Liabilities 15 1,135 225 3,301 ---- ------- ----- ------- TOTAL LONG-TERM DEBT -- -- -- -- ---- ------- ----- ------- DEFERRED CREDITS Deferred income taxes -- (2,115) (1) -- Deferred investment and energy tax credits -- -- -- -- Deferred Revenue -- -- -- -- Other -- -- -- -- ---- ------- ----- ------- Total Deferred Credits -- (2,115) (1) -- ---- ------- ----- ------- MINORITY INTEREST -- -- -- -- ---- ------- ----- ------- STOCKHOLDER'S EQUITY Capital stock 12 -- 12 -- Stock Subs Payable -- -- -- -- Contributed capital -- 10,755 -- -- Retained earnings (15) (4,126) (224) (2,238) Other Comprehensive Income -- -- -- -- Cumulative Translation Adjustment -- (2,549) -- -- ---- ------- ----- ------- Total Stockholder's Equity (3) 4,080 (212) (2,238) ---- ------- ----- ------- TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY $ 12 $ 3,100 $ 12 $ 1,063 ==== ======= ===== ======= PSEG AMERICAS INC. CONSOLIDATING STATEMENT OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 2003 (THOUSANDS) PSEG AMERICAS INTERCOMPANY PSEG ANDINA INC ELIMINATIONS AMERICAS ELECTRICA CONSOL. & RECLASS. INC INC -------- ------------ -------- --------- REVENUES: Income from capital lease agreements $ -- $ -- $ -- $-- Unrealized gains (losses) on investments -- -- -- -- Realized gains (losses) on investments -- -- -- -- Equity in subsidiary earnings -- (17,932) 17,932 -- -------- -------- ------- --- Total revenues -- (17,932) 17,932 -- -------- -------- ------- --- OPERATING EXPENSES: Operation and maintenance -- -- -- -- Write-down of project investments -- -- -- -- Depreciation and amortization -- -- -- -- Administrative and general 962 -- 276 -- -------- -------- ------- --- Total operating expenses 962 -- 276 -- -------- -------- ------- --- Income from partnerships 9,643 -- 507 -- Interest and dividend income 10,942 -- 9,147 -- Consulting and O&M fees 245 -- (364) -- -------- -------- ------- --- Total Income from equity method investments 20,830 -- 9,290 -- -------- -------- ------- --- OPERATING INCOME 19,868 (17,932) 26,946 -- -------- -------- ------- --- OTHER INCOME Foreign currency Translation Gain/Loss 4 -- -- -- -------- -------- ------- --- Total Other Income 4 -- -- -- -------- -------- ------- --- INTEREST EXPENSE: PSEG Capital Corporation -- -- -- -- PSEG Energy Holdings -- -- -- -- Other Associated Companies -- -- -- -- Other 11,788 -- -- -- Capitalized interest -- -- -- -- -------- -------- ------- --- Net interest expense 11,788 -- -- -- -------- -------- ------- --- INCOME BEFORE INCOME TAXES 8,084 (17,932) 26,946 -- -------- -------- ------- --- INCOME TAXES: Current (20,771) -- 7,945 -- Deferred 9,854 -- -- -- Investment and energy tax credits - net -- -- -- -- -------- -------- ------- --- Total income taxes (10,917) -- 7,945 -- -------- -------- ------- --- MINORITY INTERESTS -- -- -- -- -------- -------- ------- --- INCOME FROM CONTINUING OPERATIONS 19,001 (17,932) 19,001 -- -------- -------- ------- --- DISCONTINUED OPERATIONS Cumulative Effect of a change in the Acct. Principle -- -- -- -- Income from Discontinued Operations - Net of Taxes -- -- -- -- Gain on Sale of Discontinued Operations - Net of Taxes -- -- -- -- -------- -------- ------- --- INCOME FROM DISCONTINUED OPERATIONS -- -- -- -- -------- -------- ------- --- NET INCOME $ 19,001 $(17,932) $19,001 $-- ======== ======== ======= === PSEG PSEG TEXGEN HOLDINGS GLOBAL PSEG PSEG INC FUNDING II LLC LAPLATA I GLOBAL CONSOL. CONSOL (US) MGT INC --------------- -------------- --------- ------- REVENUES: Income from capital lease agreements $ -- $ -- $ -- $-- Unrealized gains (losses) on investments -- -- -- -- Realized gains (losses) on investments -- -- -- -- Equity in subsidiary earnings -- -- -- -- -------- ------- -------- --- Total revenues -- -- -- -- -------- ------- -------- --- OPERATING EXPENSES: Operation and maintenance -- -- -- -- Write-down of project investments -- -- -- -- Depreciation and amortization -- -- -- -- Administrative and general 497 189 -- -- -------- ------- -------- --- Total operating expenses 497 189 -- -- -------- ------- -------- --- Income from partnerships (2,336) 11,472 -- -- Interest and dividend income 1,795 -- -- -- Consulting and O&M fees 609 -- -- -- -------- ------- -------- --- Total Income from equity method investments 68 11,472 -- -- -------- ------- -------- --- OPERATING INCOME (429) 11,283 -- -- -------- ------- -------- --- OTHER INCOME Foreign currency Translation Gain/Loss -- -- -- 4 -------- ------- -------- --- Total Other Income -- -- -- 4 -------- ------- -------- --- INTEREST EXPENSE: PSEG Capital Corporation -- -- -- -- PSEG Energy Holdings -- -- -- -- Other Associated Companies -- -- -- -- Other -- 11,788 -- -- Capitalized interest -- -- -- -- -------- ------- -------- --- Net interest expense -- 11,788 -- -- -------- ------- -------- --- INCOME BEFORE INCOME TAXES (429) (505) -- 4 -------- ------- -------- --- INCOME TAXES: Current (10,001) (4,126) (14,590) 1 Deferred 9,854 -- -- -- Investment and energy tax credits - net -- -- -- -- -------- ------- -------- --- Total income taxes (147) (4,126) (14,590) 1 -------- ------- -------- --- MINORITY INTERESTS -- -- -- -- -------- ------- -------- --- INCOME FROM CONTINUING OPERATIONS (282) 3,621 14,590 3 -------- ------- -------- --- DISCONTINUED OPERATIONS Cumulative Effect of a change in the Acct. Principle -- -- -- -- Income from Discontinued Operations - Net of Taxes -- -- -- -- Gain on Sale of Discontinued Operations - Net of Taxes -- -- -- -- -------- ------- -------- --- INCOME FROM DISCONTINUED OPERATIONS -- -- -- -- -------- ------- -------- --- NET INCOME $ (282) $ 3,621 $ 14,590 $ 3 ======== ======= ======== === PSEG AMERICAS INC. CONSOLIDATING STATEMENT OF RETAINED EARNINGS FOR THE YEAR ENDED DECEMBER 31, 2003 (THOUSANDS) PSEG AMERICAS INTERCOMPANY PSEG ANDINA INC ELIMINATIONS AMERICAS ELECTRICA CONSOL. & RECLASS. INC INC -------- ------------ -------- --------- BALANCE JANUARY 1, 2003 $(1,649) $ 24,627 $(1,649) $-- NET INCOME 19,001 (17,932) 19,001 -- ------- -------- ------- --- TOTAL 17,352 6,695 17,352 -- ------- -------- ------- --- DIVIDENDS DECLARED -- -- -- -- ------- -------- ------- --- ------- -------- ------- --- BALANCE DECEMBER 31, 2003 $17,352 $ 6,695 $17,352 $-- ======= ======== ======= === PSEG PSEG TEXGEN HOLDINGS GLOBAL PSEG PSEG INC FUNDING II LLC LAPLATA I GLOBAL CONSOL. CONSOL (US) MGT INC --------------- -------------- --------- ------- BALANCE JANUARY 1, 2003 $(4,708) $24,196 $(43,365) $(750) NET INCOME (282) 3,621 14,590 3 ------- ------- -------- ----- TOTAL (4,990) 27,817 (28,775) (747) ------- ------- -------- ----- DIVIDENDS DECLARED -- -- -- -- ------- ------- -------- ----- ------- ------- -------- ----- BALANCE DECEMBER 31, 2003 $(4,990) $27,817 $(28,775) $(747) ======= ======= ======== ===== PSEG AMERICAS INC. CONSOLIDATING BALANCE SHEET FOR THE YEAR ENDED DECEMBER 31, 2003 (THOUSANDS) PSEG AMERICAS INTERCOMPANY PSEG ANDINA INC ELIMINATIONS AMERICAS ELECTRICA CONSOL. & RECLASS. INC INC -------- ------------ -------- --------- ASSETS CURRENT ASSETS Cash and temporary cash investments $ 5,847 $ -- $ 6 $-- Accounts and Notes receivable: Trade 1 -- -- -- Other (1) -- (1) -- PSE&G -- -- -- -- PSEG -- -- -- -- PSEG Power 24 -- 24 -- PSEG Energy Holdings -- -- -- -- Other associated companies 234,502 -- 109,114 -- Notes receivable: Associated companies -- -- -- -- Assets Held for Sale -- -- -- -- Other -- -- -- -- Interest receivable -- -- -- -- Prepayments -- -- -- -- -------- --------- -------- --- Total Current Assets 240,373 -- 109,143 -- -------- --------- -------- --- PROPERTY, PLANT AND EQUIPMENT Real estate -- -- -- -- Other -- -- -- -- Accum. depr. and amortization -- -- -- -- Valuation allowances -- -- -- -- -------- --------- -------- --- Property, Plant and Equipment-net -- -- -- -- -------- --------- -------- --- INVESTMENTS Subsidiaries 9,761 (268,958) 268,958 -- Capital lease agreements -- -- -- -- General Partnership interests 6,249 -- -- -- Limited Partnership interests 220,348 -- 68,955 -- Corporate joint ventures 185,696 -- 1,843 -- Securities -- -- -- -- Valuation allowances -- -- -- -- -------- --------- -------- --- Total Investments 422,054 (268,958) 339,756 -- -------- --------- -------- --- OTHER ASSETS Long-term receivables 5,500 -- -- -- Deferred Finance Costs 14,736 -- -- -- Other -- -- -- -- -------- --------- -------- --- Total Other Assets 20,236 -- -- -- -------- --------- -------- --- TOTAL ASSETS $682,663 $(268,958) $448,899 $-- ======== ========= ======== === PSEG PSEG TEXGEN HOLDINGS GLOBAL PSEG PSEG INC FUNDING II LLC LAPLATA I GLOBAL CONSOL. CONSOL (US) MGT INC --------------- -------------- --------- ------- ASSETS CURRENT ASSETS Cash and temporary cash investments $ 18 $ 5,800 $ -- $ 23 Accounts and Notes receivable: Trade -- 1 -- -- Other -- -- -- -- PSE&G -- -- -- -- PSEG -- -- -- -- PSEG Power -- -- -- -- PSEG Energy Holdings -- -- -- -- Other associated companies 39,063 71,320 14,590 415 Notes receivable: Associated companies -- -- -- -- Assets Held for Sale -- -- -- -- Other -- -- -- -- Interest receivable -- -- -- -- Prepayments -- -- -- -- -------- -------- ------- ---- Total Current Assets 39,081 77,121 14,590 438 -------- -------- ------- ---- PROPERTY, PLANT AND EQUIPMENT Real estate -- -- -- -- Other -- -- -- -- Accum. depr. and amortization -- -- -- -- Valuation allowances -- -- -- -- -------- -------- ------- ---- Property, Plant and Equipment-net -- -- -- -- -------- -------- ------- ---- INVESTMENTS Subsidiaries -- 9,761 -- -- Capital lease agreements -- -- -- -- General Partnership interests 6,249 -- -- -- Limited Partnership interests 151,393 -- -- -- Corporate joint ventures -- 183,853 -- -- Securities -- -- -- -- Valuation allowances -- -- -- -- -------- -------- ------- ---- Total Investments 157,642 193,614 -- -- -------- -------- ------- ---- OTHER ASSETS Long-term receivables 5,500 -- -- -- Deferred Finance Costs -- 14,736 -- -- Other -- -- -- -- -------- -------- ------- ---- Total Other Assets 5,500 14,736 -- -- -------- -------- ------- ---- TOTAL ASSETS $202,223 $285,471 $14,590 $438 ======== ======== ======= ==== PSEG AMERICAS INC. CONSOLIDATING BALANCE SHEET FOR THE YEAR ENDED DECEMBER 31, 2003 (THOUSANDS) PSEG AMERICAS INTERCOMPANY PSEG ANDINA INC ELIMINATIONS AMERICAS ELECTRICA CONSOL. & RECLASS. INC INC -------- ------------- -------- --------- LIABILITIES AND STOCKHOLDER'S EQUITY CURRENT LIABILITIES Accounts payable: Trade $ 29 $ -- $ 29 $-- Taxes -- -- -- -- Other -- -- -- -- Interest 2,668 -- -- -- Associated companies 190,436 -- 139,169 -- Notes payable: PSEG Capital Corporation -- -- -- -- Enterprise Capital Funding Corp. -- -- -- -- Enterprise Group Development Corp. -- -- -- -- Enterprise Diversified Holdings Inc. -- -- -- -- U.S.Energy Incorporated -- -- -- -- Current portion of long-term debt -- -- -- -- -------- --------- -------- --- Total Current Liabilities 193,133 -- 139,198 -- -------- --------- -------- --- TOTAL LONG-TERM DEBT 160,000 -- -- -- -------- --------- -------- --- DEFERRED CREDITS Deferred income taxes 17,950 -- 3,505 -- Deferred investment and energy tax credits -- -- -- Deferred Revenue 12,284 -- 6,900 -- Other -- -- -- -------- --------- -------- --- Total Deferred Credits 30,234 -- 10,405 -- -------- --------- -------- --- MINORITY INTEREST -- -- -- -- -------- --------- -------- --- STOCKHOLDER'S EQUITY Capital stock -- -- -- -- Stock Subs Payable -- -- -- -- Contributed capital 286,816 (280,525) 286,816 -- Retained earnings 17,352 6,695 17,352 -- Other Comprehensive Income (4,872) 4,872 (4,872) -- Cumulative Translation Adjustment -- -- -- -- -------- --------- -------- --- Total Stockholder's Equity 299,296 (268,958) 299,296 -- -------- --------- -------- --- TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY $682,663 $(268,958) $448,899 $-- ======== ========= ======== === PSEG PSEG TEXGEN HOLDINGS GLOBAL PSEG PSEG INC FUNDING II LLC LAPLATA I GLOBAL CONSOL. CONSOL (US) MGT INC --------------- -------------- --------- ------- LIABILITIES AND STOCKHOLDER'S EQUITY CURRENT LIABILITIES Accounts payable: Trade $ -- $ -- $ -- $ -- Taxes -- -- -- -- Other -- -- -- -- Interest -- 2,668 -- -- Associated companies 14,161 35,690 -- 1,416 Notes payable: PSEG Capital Corporation -- -- -- -- Enterprise Capital Funding Corp. -- -- -- -- Enterprise Group Development Corp. -- -- -- -- Enterprise Diversified Holdings Inc. -- -- -- -- U.S.Energy Incorporated -- -- -- -- Current portion of long-term debt -- -- -- -- -------- -------- -------- ------ Total Current Liabilities 14,161 38,358 -- 1,416 -------- -------- -------- ------ TOTAL LONG-TERM DEBT -- 160,000 -- -- -------- -------- -------- ------ DEFERRED CREDITS Deferred income taxes 14,553 123 -- (231) Deferred investment and energy tax credits -- -- -- -- Deferred Revenue 5,384 -- -- -- Other -- -- -- -- -------- -------- -------- ------ Total Deferred Credits 19,937 123 -- (231) -------- -------- -------- ------ MINORITY INTEREST -- -- -- -- -------- -------- -------- ------ STOCKHOLDER'S EQUITY Capital stock -- -- -- -- Stock Subs Payable -- -- -- -- Contributed capital 176,956 60,204 43,365 -- Retained earnings (4,990) 27,817 (28,775) (747) Other Comprehensive Income (3,841) (1,031) -- -- Cumulative Translation Adjustment -- -- -- -- -------- -------- -------- ------ Total Stockholder's Equity 168,125 86,990 14,590 (747) -------- -------- -------- ------ TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY $202,223 $285,471 $ 14,590 $ 438 ======== ======== ======== ====== PSEG GLOBAL INTL HOLDING LLC CONSOLIDATING STATEMENT OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 2003 (THOUSANDS) PSEG GLOBAL INTERCOMPANY PSEG GLOBAL PSEG INT'L HOLDINGS ELIMINATIONS INT'L HOLDINGS AMERICAS LLC CONSOL & RECLASS. LLC LTD -------------- ------------ -------------- ---------- REVENUES: Income from capital lease agreements $ -- $ -- $ -- $ -- Gain on Withdrawal from Partnership -- -- -- -- Realized gains (losses) on investments -- -- -- -- Electric Revenues Generation 74,009 -- -- 74,009 Other 155,114 -- -- 155,114 Distribution 21,309 -- -- 21,309 Equity in subsidiary earnings -- (193,959) 194,306 (347) --------- --------- -------- --------- Total revenues 250,432 (193,959) 194,306 250,085 --------- --------- -------- --------- OPERATING EXPENSES: Operation and maintenance 15,617 -- -- 15,617 Write-down of project investments (3,491) -- -- (3,491) Electric and Energy Costs 100,468 -- -- 100,468 Depreciation and amortization 21,119 -- -- 21,119 Administrative and general 29,189 -- -- 29,189 --------- --------- -------- --------- Total operating expenses 162,902 -- -- 162,902 --------- --------- -------- --------- Income from partnerships 39,327 -- -- 39,327 Interest and dividend income 552 -- -- 552 Consulting and O&M fees 571 -- -- 571 --------- --------- -------- --------- Total Income from equity method investments 40,450 -- -- 40,450 --------- --------- -------- --------- OPERATING INCOME 127,980 (193,959) 194,306 127,633 --------- --------- -------- --------- OTHER INCOME: Write off of investments -- -- -- -- Gain on sale - other -- -- -- -- Change in Derivative Fair Value - FAS 133 (5,651) -- -- (5,651) Foreign currency translation Gain/Loss 8,442 -- -- 8,442 Other 2,094 -- -- 2,094 --------- --------- -------- --------- Total Other Income 4,885 -- -- 4,885 --------- --------- -------- --------- INTEREST EXPENSE: PSEG Capital Corporation -- -- -- -- PSEG Energy Holdings 774 -- -- 774 Other Associated Companies (233) -- -- (233) Other 24,241 -- -- 24,241 Capitalized interest (380) -- -- (380) --------- --------- -------- --------- Net interest expense 24,402 -- -- 24,402 --------- --------- -------- --------- INCOME BEFORE INCOME TAXES 108,463 (193,959) 194,306 108,116 --------- --------- -------- --------- INCOME TAXES: Current (284) -- -- (284) Deferred (123,173) -- -- (123,173) Foreign Taxes 13,506 -- -- 13,506 Investment and energy tax credits - net -- -- -- -- --------- --------- -------- --------- Total income taxes (109,951) -- -- (109,951) --------- --------- -------- --------- MINORITY INTERESTS 831 347 -- 484 --------- --------- -------- --------- INCOME FROM CONTINUING OPERATIONS 217,583 (194,306) 194,306 217,583 --------- --------- -------- --------- DISCONTINUED OPERATIONS Cumulative Effect of a change in the Acct. Principle -- -- -- -- Income from Discontinued Operations - Net of Taxes (544) -- -- (544) Gain on Sale of Discontinued Operations - Net of Taxes (22,733) -- -- (22,733) --------- --------- -------- --------- INCOME FROM DISCONTINUED OPERATIONS (23,277) -- -- (23,277) --------- --------- -------- --------- NET INCOME $ 194,306 $(194,306) $194,306 $ 194,306 ========= ========= ======== ========= PSEG GLOBAL INTL HOLDING LLC CONSOLIDATING STATEMENT OF RETAINED EARNINGS FOR THE YEAR ENDED DECEMBER 31, 2003 (THOUSANDS) PSEG GLOBAL INTERCOMPANY PSEG GLOBAL PSEG INT'L HOLDINGS ELIMINATIONS INT'L HOLDINGS AMERICAS LLC CONSOL & RECLASS. LLC LTD -------------- ------------ -------------- ---------- BALANCE JANUARY 1, 2003 $(508,375) $ 508,375 $(508,375) $(508,375) NET INCOME 194,306 (194,306) 194,306 194,306 --------- --------- --------- --------- TOTAL (314,069) 314,069 (314,069) (314,069) --------- --------- --------- --------- DIVIDENDS DECLARED -- -- -- -- --------- --------- --------- --------- --------- --------- --------- --------- BALANCE DECEMBER 31, 2003 $(314,069) $ 314,069 $(314,069) $(314,069) ========= ========= ========= ========= PSES GLOBAL INT'L HOLDING LLC CONSOLIDATING BALANCE SHEET FOR THE YEAR ENDED DECEMBER 31, 2003 (THOUSANDS) PSEG GLOBAL PSEG INT'L HOLDINGS INTERCOMPANY GLOBAL PSEG LLC ELIMINATIONS INT'L HOLDINGS AMERICAS CONSOL & RECLASS. LLC LTD -------------- ------------ -------------- ---------- ASSETS CURRENT ASSETS Cash and temporary cash investments $ 122,085 $ -- $ -- $ 122,085 Accounts and Notes receivable: Trade 64,453 -- -- 64,453 Other 15,549 -- (12) 15,561 PSE&G -- -- -- -- PSEG (85) -- -- (85) PSEG Energy Holdings -- -- -- -- Other associated companies 1,074,838 -- 1,074,838 Notes receivable: Associated companies -- -- -- -- Other -- -- -- -- Interest receivable -- -- -- -- Assets held for sale -- -- -- -- Current Assets Disc Ops 276,509 -- -- 276,509 Restricted Cash -- -- -- -- Prepayments 1,919 -- -- 1,919 Fuel 1,821 -- -- 1,821 Materials 10,404 -- -- 10,404 ---------- ---------- ---------- ---------- Total Current Assets 1,567,493 -- (12) 1,567,505 ---------- ---------- ---------- ---------- PROPERTY, PLANT AND EQUIPMENT Real estate 14,720 -- -- 14,720 Generation & distribution Assets 690,353 -- -- 690,353 Furniture & Equipment 56,726 -- -- 56,726 Construction Work in Process 19,490 -- -- 19,490 Other 4,568 -- -- 4,568 Accum. depr. and amortization (125,048) -- -- (125,048) Valuation allowances -- -- -- -- ---------- ---------- ---------- ---------- Property, Plant and Equipment-net 660,809 -- -- 660,809 ---------- ----------- ---------- ---------- INVESTMENTS Subsidiaries 38,517 (1,387,407) 1,387,407 38,517 Capital lease agreements -- -- -- -- General Partnership Interests -- -- -- -- Limited Partnership Interests -- -- -- -- Corporate joint ventures 677,060 -- -- 677,060 Securities -- -- -- -- Valuation allowances -- -- -- -- ---------- ----------- ---------- ---------- Total Investments 715,577 (1,387,407) 1,387,407 715,577 ---------- ----------- ---------- ---------- OTHER ASSETS Long Term Other Receivable 1,995 -- -- 1,995 Goodwill 482,641 -- -- 482,641 Deferred Tax Asset 31,378 -- -- 31,378 Derivative Asset (101) -- -- (101) Deferred Finance Costs 12,214 -- -- 12,214 Project Start up Costs 4,931 -- -- 4,931 Prepaid Pension 45 -- -- 45 Intangibles 663 -- -- 663 Other 2,182 -- -- 2,182 ---------- ----------- ---------- ---------- Total Other Assets 535,948 -- -- 535,948 ---------- ----------- ---------- ---------- TOTAL ASSETS $3,479,827 $(1,387,407) $1,387,395 $3,479,839 ========== =========== ========== ========== PSES GLOBAL INT'L HOLDING LLC CONSOLIDATING BALANCE SHEET FOR THE YEAR ENDED DECEMBER 31, 2003 (THOUSANDS) PSEG GLOBAL PSEG INT'L HOLDINGS INTERCOMPANY GLOBAL PSEG LLC ELIMINATIONS INT'L HOLDINGS AMERICAS CONSOL & RECLASS. LLC LTD -------------- ------------ -------------- ---------- LIABILITIES AND STOCKHOLDER'S EQUITY CURRENT LIABILITIES Accounts payable: Trade $ 38,886 $ -- $ -- $ 38,886 Taxes 1,907 -- -- 1,907 Other 34,923 -- -- 34,923 Interest 5,333 -- -- 5,333 Associated companies 1,387,128 -- -- 1,387,128 Notes payable: PSEG Capital Corporation -- -- -- -- Enterprise Capital Funding Corp. -- -- -- -- Enterprise Group Development Corp. -- -- -- -- PSEG Energy Holdings Inc. 9,609 -- -- 9,609 Other -- -- -- -- DISC OPS 241,764 -- -- 241,764 Current portion of long-term debt 29,422 -- -- 29,422 ---------- ----------- ----------- ---------- Total Current Liabilities 1,748,972 -- -- 1,748,972 ---------- ----------- ----------- ---------- TOTAL LONG-TERM DEBT 438,590 -- -- 438,590 ---------- ----------- ----------- ---------- DEFERRED CREDITS Deferred income taxes (131,808) -- -- (131,808) Deferred investment and energy tax credits -- -- -- -- Derivative Liability 24,248 -- -- 24,248 Other (674) -- -- (674) ---------- ----------- ----------- ---------- Total Deferred Credits (108,234) -- -- (108,234) ---------- ----------- ----------- ---------- MINORITY INTEREST 13,104 -- -- 13,104 ---------- ----------- ----------- ---------- STOCKHOLDER'S EQUITY Capital stock -- (12) -- 12 Stock Subs Payable -- -- -- -- Contributed capital 1,928,388 (1,928,388) 1,928,388 1,928,388 Retained earnings (314,069) 314,069 (314,069) (314,069) Other Comprehensive Income (13,958) 13,958 (13,958) (13,958) Cumulative Translation Adjustment (212,966) 212,966 (212,966) (212,966) ---------- ----------- ----------- ---------- Total Stockholder's Equity 1,387,395 (1,387,407) 1,387,395 1,387,407 ---------- ----------- ----------- ---------- TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY $3,479,827 $(1,387,407) $ 1,387,395 $3,479,839 ========== =========== =========== ========== PSEG AMERICAS LTD. CONSOLIDATING STATEMENT OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 2003 (THOUSANDS) PSEG AMERICAS INTERCOMPANY PSEG ASSOCIACION LTD ELIMINATIONS AMERICAS EN CONSOL. & RECLASS. LTD PARTICIPACION CAYMAN'S IV --------- ------------ --------- ------------- ----------- REVENUES: Income from capital lease agreements $ -- $ -- $ -- $ -- $ -- Unrealized gains (losses) on investments -- -- -- -- -- Realized gains (losses) on investments -- -- -- -- -- Electric Revenues Generation 74,009 -- -- -- -- Distribution 155,114 -- -- -- -- Other 21,309 -- -- -- -- Equity in subsidiary earnings (347) (43,028) 43,028 (347) -- --------- -------- --------- ----- ----- Total revenues 250,085 (43,028) 43,028 (347) -- --------- -------- --------- ----- ----- OPERATING EXPENSES: Operation and maintenance 15,617 -- -- -- -- Write-down of project investments (3,491) -- (3,633) -- -- Depreciation and amortization 21,119 -- -- -- -- Electric and Energy Costs 100,468 -- -- -- -- Administrative and general 29,189 -- 1,630 -- 814 --------- -------- --------- ----- ----- Total operating expenses 162,902 -- (2,003) -- 814 --------- -------- --------- ----- ----- Income from partnerships 39,327 -- 19,762 -- -- Management/Development Fees -- -- -- -- -- Interest and dividend income 552 -- 552 -- -- Consulting and O&M fees 571 -- 364 -- -- --------- -------- --------- ----- ----- Total Income from equity method investments 40,450 -- 20,678 -- -- --------- -------- --------- ----- ----- OPERATING INCOME 127,633 (43,028) 65,709 (347) (814) --------- -------- --------- ----- ----- OTHER INCOME Write off of investments -- -- -- -- -- Change in Derivative Fair Value - FAS 133 (5,651) -- (943) -- -- Foreign currency Translation Gain/Loss 8,442 -- (5) -- -- Other 2,094 -- -- -- -- --------- -------- --------- ----- ----- Total Other Income 4,885 -- (948) -- -- --------- -------- --------- ----- ----- INTEREST EXPENSE: PSEG Capital Corporation -- -- -- -- -- PSEG Energy Holdings' 774 -- -- -- -- Other Associated Companies (233) -- -- -- (204) Other 24,241 -- (6,709) (730) -- Capitalized interest (380) -- -- -- -- --------- -------- --------- ----- ----- Net interest expense 24,402 -- (6,709) (730) (204) --------- -------- --------- ----- ----- INCOME BEFORE INCOME TAXES 108,116 (43,028) 71,470 383 (610) --------- -------- --------- ----- ----- INCOME TAXES: Current (284) -- 1,556 -- -- Deferred (123,173) -- (124,368) -- -- Foreign Taxes 13,506 -- (24) -- -- Investment and energy tax credits - net -- -- -- -- -- --------- -------- --------- ----- ----- Total income taxes (109,951) -- (122,836) -- -- --------- -------- --------- ----- ----- MINORITY INTERESTS 484 -- -- -- -- --------- -------- --------- ----- ----- INCOME FROM CONTINUING OPERATIONS 217,583 (43,028) 194,306 383 (610) --------- -------- --------- ----- ----- DISCONTINUED OPERATIONS Income from Discontinued Operations - Net of Taxes (544) -- -- -- -- Gain on Sale of Discontinued Operations - Net of Taxes (22,733) -- -- -- -- --------- -------- --------- ----- ----- INCOME FROM DISCONTINUED OPERATIONS (23,277) -- -- -- -- --------- -------- --------- ----- ----- Cumulative Effect of a change in Acct. Principle -- -- -- -- -- --------- -------- --------- ----- ----- NET INCOME $ 194,306 $(43,028) $ 194,306 $ 383 $(610) ========= ======== ========= ===== ===== PERUVIAN ANDINA PSEG VENERGY OPPORTUNITY MENDOZA I BRAZIL HOLDINGS COMPANY S.A.C. COMPANY OPERATING CO. COMPANY (POC) (Cayman) (Cayman) (Cayman) -------------- --------- ------------- -------- REVENUES: Income from capital lease agreements $ -- $-- $-- $ -- Unrealized gains (losses) on investments -- -- -- -- Realized gains (losses) on investments -- -- -- -- Electric Revenues Generation -- -- -- -- Distribution -- -- -- -- Other -- -- -- -- Equity in subsidiary earnings -- -- -- -- ---- --- --- ---- Total revenues -- -- -- -- ---- --- --- ---- OPERATING EXPENSES: Operation and maintenance -- -- -- -- Write-down of project investments -- -- -- -- Depreciation and amortization -- -- -- -- Electric and Energy Costs -- -- -- -- Administrative and general (58) -- -- 221 ---- --- --- ---- Total operating expenses (58) -- -- 221 ---- --- --- ---- Income from partnerships -- -- -- 496 Management/Development Fees -- -- -- -- Interest and dividend income -- -- -- -- Consulting and O&M fees -- -- -- -- ---- --- --- ---- Total Income from equity method investments -- -- -- 496 ---- --- --- ---- OPERATING INCOME 58 -- -- 275 ---- --- --- ---- OTHER INCOME Write off of investments -- -- -- -- Change in Derivative Fair Value - FAS 133 -- -- -- -- Foreign currency Translation Gain/Loss -- -- -- -- Other -- -- -- -- ---- --- --- ---- Total Other Income -- -- -- -- ---- --- --- ---- INTEREST EXPENSE: PSEG Capital Corporation -- -- -- -- PSEG Energy Holdings' -- -- -- -- Other Associated Companies -- -- -- -- Other 106 -- -- (11) Capitalized interest -- -- -- -- ---- --- --- ---- Net interest expense 106 -- -- (11) ---- --- --- ---- INCOME BEFORE INCOME TAXES (48) -- -- 286 ---- --- --- ---- INCOME TAXES: Current -- -- -- -- Deferred -- -- -- -- Foreign Taxes -- -- -- -- Investment and energy tax credits - net -- -- -- -- ---- --- --- ---- Total income taxes -- -- -- -- ---- --- --- ---- MINORITY INTERESTS -- -- -- -- ---- --- --- ---- INCOME FROM CONTINUING OPERATIONS (48) -- -- 286 ---- --- --- ---- DISCONTINUED OPERATIONS Income from Discontinued Operations - Net of Taxes -- -- -- -- Gain on Sale of Discontinued Operations - Net of Taxes -- -- -- -- ---- --- --- ---- INCOME FROM DISCONTINUED OPERATIONS -- -- -- -- ---- --- --- ---- Cumulative Effect of a change in Acct. Principle -- -- -- -- ---- --- --- ---- NET INCOME $(48) $-- $-- $286 ==== === === ==== RAYO-ANDINO TERRA ROXA I GESTORA LTDA COMPANY (Cayman) (Cayman) ------------ ----------- REVENUES: Income from capital lease agreements $-- $-- Unrealized gains (losses) on investments -- -- Realized gains (losses) on investments -- -- Electric Revenues Generation -- -- Distribution -- -- Other -- -- Equity in subsidiary earnings -- -- --- --- Total revenues -- -- --- --- OPERATING EXPENSES: Operation and maintenance -- -- Write-down of project investments -- -- Depreciation and amortization -- -- Electric and Energy Costs -- -- Administrative and general -- -- --- --- Total operating expenses -- -- --- --- Income from partnerships -- -- Management/Development Fees -- -- Interest and dividend income -- -- Consulting and O&M fees -- -- --- --- Total Income from equity method investments -- -- --- --- OPERATING INCOME -- -- --- --- OTHER INCOME Write off of investments -- -- Change in Derivative Fair Value - FAS 133 -- -- Foreign currency Translation Gain/Loss -- -- Other -- -- --- --- Total Other Income -- -- --- --- INTEREST EXPENSE: PSEG Capital Corporation -- -- PSEG Energy Holdings' -- -- Other Associated Companies -- -- Other -- -- Capitalized interest -- -- --- --- Net interest expense -- -- --- --- INCOME BEFORE INCOME TAXES -- -- --- --- INCOME TAXES: Current -- -- Deferred -- -- Foreign Taxes -- -- Investment and energy tax credits - net -- -- --- --- Total income taxes -- -- --- --- MINORITY INTERESTS -- -- --- --- INCOME FROM CONTINUING OPERATIONS -- -- --- --- DISCONTINUED OPERATIONS Income from Discontinued Operations - Net of Taxes -- -- Gain on Sale of Discontinued Operations - Net of Taxes -- -- --- --- INCOME FROM DISCONTINUED OPERATIONS -- -- --- --- Cumulative Effect of a change in Acct. Principle -- -- --- --- NET INCOME $-- $-- === === PSEG AMERICAS LTD. CONSOLIDATING STATEMENT OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 2003 (THOUSANDS) RAYO-ANDINO PSEG INVERSORA PSEG ARGENTINA PSEG COMPANY BRAZIL HOLDING CO AMERICAS (Cayman) LTDA LLC EDEERSA OPERATING CO ----------- ------ ---------- ------- ------------ REVENUES: Income from capital lease agreements $-- $ -- $-- $-- $ -- Unrealized gains (losses) on investments -- -- -- -- -- Realized gains (losses) on investments -- -- -- -- -- Electric Revenues Generation -- -- -- -- -- Distribution -- -- -- -- -- Other -- -- -- -- -- Equity in subsidiary earnings -- -- -- -- -- --- ----- --- --- ------- Total revenues -- -- -- -- -- --- ----- --- --- ------- OPERATING EXPENSES: Operation and maintenance -- -- -- -- -- Write-down of project investments -- -- -- -- -- Depreciation and amortization -- 8 -- -- -- Electric and Energy Costs -- -- -- -- -- Administrative and general -- 265 -- -- (41) --- ----- --- --- ------- Total operating expenses -- 273 -- -- (41) --- ----- --- --- ------- Income from partnerships -- -- -- -- -- Management/Development Fees -- -- -- -- -- Interest and dividend income -- -- -- -- -- Consulting and O&M fees -- -- -- -- -- --- ----- --- --- ------- Total Income from equity method investments -- -- -- -- -- --- ----- --- --- ------- OPERATING INCOME -- (273) -- -- 41 --- ----- --- --- ------- OTHER INCOME Write off of investments -- -- -- -- -- Change in Derivative Fair Value - FAS 133 -- -- -- -- -- Foreign currency Translation Gain/Loss -- (11) -- -- -- Other -- -- -- -- -- --- ----- --- --- ------- Total Other Income -- (11) -- -- -- --- ----- --- --- ------- INTEREST EXPENSE: PSEG Capital Corporation -- -- -- -- -- PSEG Energy Holdings' -- -- -- -- -- Other Associated Companies -- -- -- -- -- Other -- -- -- -- 8,506 Capitalized interest -- -- -- -- -- --- ----- --- --- ------- Net interest expense -- -- -- -- 8,506 --- ----- --- --- ------- INCOME BEFORE INCOME TAXES -- (284) -- -- (8,465) --- ----- --- --- ------- INCOME TAXES: Current -- -- -- -- (1,246) Deferred -- -- -- -- -- Foreign Taxes -- -- -- -- -- Investment and energy tax credits - net -- -- -- -- -- --- ----- --- --- ------- Total income taxes -- -- -- -- (1,246) --- ----- --- --- ------- MINORITY INTERESTS -- -- -- -- -- --- ----- --- --- ------- INCOME FROM CONTINUING OPERATIONS -- (284) -- -- (7,219) --- ----- --- --- ------- DISCONTINUED OPERATIONS Income from Discontinued Operations - Net of Taxes -- -- -- -- -- Gain on Sale of Discontinued Operations - Net of Taxes -- -- -- -- -- --- ----- --- --- ------- INCOME FROM DISCONTINUED OPERATIONS -- -- -- -- -- --- ----- --- --- ------- Cumulative Effect of a change in Acct. Principle -- -- -- -- -- --- ----- --- --- ------- NET INCOME $-- $(284) $-- $-- $(7,219) === ===== === === ======= PSEG CAYMAN PSEG AMERICAS PERU POWER PSEG CAYMAN CAYMAN COMPANY LTD ELECTRICA AMERICAS I AMERICAS II CONSOL. (Cayman) (Cayman) ---------- ----------- -------- ---------- --------- REVENUES: Income from capital lease agreements $-- $-- $ -- $-- $-- Unrealized gains (losses) on investments -- -- -- -- -- Realized gains (losses) on investments -- -- -- -- -- Electric Revenues Generation -- -- -- -- -- Distribution -- -- -- -- -- Other -- -- -- -- -- Equity in subsidiary earnings -- -- -- -- -- --- --- ---- --- --- Total revenues -- -- -- -- -- --- --- ---- --- --- OPERATING EXPENSES: Operation and maintenance -- -- -- -- -- Write-down of project investments -- -- -- -- -- Depreciation and amortization -- -- -- -- -- Electric and Energy Costs -- -- -- -- -- Administrative and general -- -- 2 -- -- --- --- ---- --- --- Total operating expenses -- -- 2 -- -- --- --- ---- --- --- Income from partnerships -- -- -- -- -- Management/Development Fees -- -- -- -- -- Interest and dividend income -- -- -- -- -- Consulting and O&M fees -- -- -- -- -- --- --- ---- --- --- Total Income from equity method investments -- -- -- -- -- --- --- ---- --- --- OPERATING INCOME -- -- (2) -- -- --- --- ---- --- --- OTHER INCOME Write off of investments -- -- -- -- -- Change in Derivative Fair Value - FAS 133 -- -- -- -- -- Foreign currency Translation Gain/Loss -- -- -- -- -- Other -- -- -- -- -- --- --- ---- --- --- Total Other Income -- -- -- -- -- --- --- ---- --- --- INTEREST EXPENSE: PSEG Capital Corporation -- -- -- -- -- PSEG Energy Holdings' -- -- -- -- -- Other Associated Companies -- -- -- -- -- Other -- -- -- -- -- Capitalized interest -- -- -- -- -- --- --- ---- --- --- Net interest expense -- -- -- -- -- --- --- ---- --- --- INCOME BEFORE INCOME TAXES -- -- (2) -- -- --- --- ---- --- --- INCOME TAXES: Current -- -- (26) -- -- Deferred -- -- -- -- -- Foreign Taxes -- -- -- -- -- Investment and energy tax credits - net -- -- -- -- -- --- --- ---- --- --- Total income taxes -- -- (26) -- -- --- --- ---- --- --- MINORITY INTERESTS -- -- -- -- -- --- --- ---- --- --- INCOME FROM CONTINUING OPERATIONS -- -- 24 -- -- --- --- ---- --- --- DISCONTINUED OPERATIONS Income from Discontinued Operations - Net of Taxes -- -- -- -- -- Gain on Sale of Discontinued Operations - Net of Taxes -- -- -- -- -- --- --- ---- --- --- INCOME FROM DISCONTINUED OPERATIONS -- -- -- -- -- --- --- ---- --- --- Cumulative Effect of a change in Acct. Principle -- -- -- -- -- --- --- ---- --- --- NET INCOME $-- $-- $ 24 $-- $-- === === ==== === === PSEG PSEG PSEG GLOBAL BRAZIL II BRAZIL III FUNDING II INFRAMAX COMPANY COMPANY CORP CORP --------- ---------- ---------- -------- REVENUES: Income from capital lease agreements $-- $-- $-- $-- Unrealized gains (losses) on investments -- -- -- -- Realized gains (losses) on investments -- -- -- -- Electric Revenues Generation -- -- -- -- Distribution -- -- -- -- Other -- -- -- -- Equity in subsidiary earnings -- -- -- -- --- --- --- --- Total revenues -- -- -- -- --- --- --- --- OPERATING EXPENSES: Operation and maintenance -- -- -- -- Write-down of project investments -- -- -- -- Depreciation and amortization -- -- -- -- Electric and Energy Costs -- -- -- -- Administrative and general -- -- -- -- --- --- --- --- Total operating expenses -- -- -- -- --- --- --- --- Income from partnerships -- -- -- -- Management/Development Fees -- -- -- -- Interest and dividend income -- -- -- -- Consulting and O&M fees -- -- -- -- --- --- --- --- Total Income from equity method investments -- -- -- -- --- --- --- --- OPERATING INCOME -- -- -- -- --- --- --- --- OTHER INCOME Write off of investments -- -- -- -- Change in Derivative Fair Value - FAS 133 -- -- -- -- Foreign currency Translation Gain/Loss -- -- -- -- Other -- -- -- -- --- --- --- --- Total Other Income -- -- -- -- --- --- --- --- INTEREST EXPENSE: PSEG Capital Corporation -- -- -- -- PSEG Energy Holdings' -- -- -- -- Other Associated Companies -- -- -- -- Other -- -- -- -- Capitalized interest -- -- -- -- --- --- --- --- Net interest expense -- -- -- -- --- --- --- --- INCOME BEFORE INCOME TAXES -- -- -- -- --- --- --- --- INCOME TAXES: Current -- -- -- -- Deferred -- -- -- -- Foreign Taxes -- -- -- -- Investment and energy tax credits - net -- -- -- -- --- --- --- --- Total income taxes -- -- -- -- --- --- --- --- MINORITY INTERESTS -- -- -- -- --- --- --- --- INCOME FROM CONTINUING OPERATIONS -- -- -- -- --- --- --- --- DISCONTINUED OPERATIONS Income from Discontinued Operations - Net of Taxes -- -- -- -- Gain on Sale of Discontinued Operations - Net of Taxes -- -- -- -- --- --- --- --- INCOME FROM DISCONTINUED OPERATIONS -- -- -- -- --- --- --- --- Cumulative Effect of a change in Acct. Principle -- -- -- -- --- --- --- --- NET INCOME $-- $-- $-- $-- === === === === PSEG AMERICAS LTD. CONSOLIDATING STATEMENT OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 2003 (THOUSANDS) INVERSIONES PSEG PSEG AMERICAS TRANSAMERICA PSEG CHILEAN CHILE HOLDING ENERGY BRAZIL PSEG EQUITY II LTD LIMITADA COMPANY INVESTMENT SALALAH CONSOL. CONSOL. CONSOL CONSOL. CONSOL. ------------- ------------- ------------ ---------- ------- REVENUES: Income from capital lease agreements $ -- $ -- $ -- $ -- $ -- Unrealized gains (losses) on investments -- -- -- -- -- Realized gains (losses) on investments -- -- -- -- -- Electric Revenues Generation -- -- 47,151 -- 26,858 Distribution -- 144,169 -- -- 10,945 Other -- 21,240 -- -- 69 Equity in subsidiary earnings -- -- -- -- -- ------- -------- ------- ------- ------- Total revenues -- 165,409 47,151 -- 37,872 ------- -------- ------- ------- ------- OPERATING EXPENSES: Operation and maintenance -- 3,686 9,203 -- 2,728 Write-down of project investments -- -- -- -- -- Depreciation and amortization -- 8,723 4,142 -- 8,246 Electric and Energy Costs -- 85,902 1,536 -- 13,030 Administrative and general 945 13,226 7,776 635 3,710 ------- -------- ------- ------- ------- Total operating expenses 945 111,537 22,657 635 27,714 ------- -------- ------- ------- ------- Income from partnerships 16,557 (19,543) 1,896 11,553 -- Management/Development Fees -- -- -- -- -- Interest and dividend income -- -- -- -- -- Consulting and O&M fees -- -- -- -- 207 ------- -------- ------- ------- ------- Total Income from equity method investments 16,557 (19,543) 1,896 11,553 207 ------- -------- ------- ------- ------- OPERATING INCOME 15,612 34,329 26,390 10,918 10,365 ------- -------- ------- ------- ------- OTHER INCOME Write off of investments -- -- -- -- -- Change in Derivative Fair Value - FAS 133 (645) (4,073) -- 10 -- Foreign currency Translation Gain/Loss (116) 5,109 (707) 4,161 -- Other -- (932) 3,026 -- -- ------- -------- ------- ------- ------- Total Other Income (761) 104 2,319 4,171 -- ------- -------- ------- ------- ------- INTEREST EXPENSE: PSEG Capital Corporation -- -- -- -- -- PSEG Energy Holdings' -- -- -- 774 -- Other Associated Companies -- -- (29) -- -- Other -- 9,574 4,692 -- 8,813 Capitalized interest -- (380) -- -- -- ------- -------- ------- ------- ------- Net interest expense -- 9,194 4,663 774 8,813 ------- -------- ------- ------- ------- INCOME BEFORE INCOME TAXES 14,851 25,239 24,046 14,315 1,552 ------- -------- ------- ------- ------- INCOME TAXES: Current (4) -- -- 1 -- Deferred (226) (510) -- 263 -- Foreign Taxes -- 5,361 8,169 -- -- Investment and energy tax credits - net -- -- -- -- -- ------- -------- ------- ------- ------- Total income taxes (230) 4,851 8,169 264 -- ------- -------- ------- ------- ------- MINORITY INTERESTS -- 329 -- -- 155 ------- -------- ------- ------- ------- INCOME FROM CONTINUING OPERATIONS 15,081 20,059 15,877 14,051 1,397 ------- -------- ------- ------- ------- DISCONTINUED OPERATIONS Income from Discontinued Operations - Net of Taxes -- -- -- -- -- Gain on Sale of Discontinued Operations - Net of Taxes -- -- -- -- -- ------- -------- ------- ------- ------- INCOME FROM DISCONTINUED OPERATIONS -- -- -- -- -- ------- -------- ------- ------- ------- Cumulative Effect of a change in Acct. Principle -- -- -- -- -- ------- -------- ------- ------- ------- NET INCOME $15,081 $ 20,059 $15,877 $14,051 $ 1,397 ======= ======== ======= ======= ======= PSEG RAYO-ANDINO SERVICIOS BERMUDA INVERSORA PSEG TECHNICOS HOLDINGS III COMPANY CHINA PSEG CHILE CONSOL. CONSOL. INC LTDA ------------ ----------- ------ ---------- REVENUES: Income from capital lease agreements $ -- $ -- $ -- $ -- Unrealized gains (losses) on investments -- -- -- -- Realized gains (losses) on investments -- -- -- -- Electric Revenues Generation -- -- -- -- Distribution -- -- -- -- Other -- -- -- -- Equity in subsidiary earnings -- -- -- -- ----- -------- ------ ----- Total revenues -- -- -- -- ----- -------- ------ ----- OPERATING EXPENSES: Operation and maintenance -- -- -- -- Write-down of project investments -- 142 -- -- Depreciation and amortization -- -- -- -- Electric and Energy Costs -- -- -- -- Administrative and general 9 334 21 (300) ----- -------- ------ ----- Total operating expenses 9 476 21 (300) ----- -------- ------ ----- Income from partnerships -- -- 8,606 -- Management/Development Fees -- -- -- -- Interest and dividend income -- -- -- -- Consulting and O&M fees -- -- -- -- ----- -------- ------ ----- Total Income from equity method investments -- -- 8,606 -- ----- -------- ------ ----- OPERATING INCOME (9) (476) 8,585 300 ----- -------- ------ ----- OTHER INCOME Write off of investments -- -- -- -- Change in Derivative Fair Value - FAS 133 -- -- -- -- Foreign currency Translation Gain/Loss -- -- -- 11 Other -- -- -- -- ----- -------- ------ ----- Total Other Income -- -- -- 11 ----- -------- ------ ----- INTEREST EXPENSE: PSEG Capital Corporation -- -- -- -- PSEG Energy Holdings' -- -- -- -- Other Associated Companies -- -- -- -- Other -- -- -- -- Capitalized interest -- -- -- -- ----- -------- ------ ----- Net interest expense -- -- -- -- ----- -------- ------ ----- INCOME BEFORE INCOME TAXES (9) (476) 8,585 311 ----- -------- ------ ----- INCOME TAXES: Current (398) (167) -- -- Deferred 199 1,469 -- -- Foreign Taxes -- -- -- -- Investment and energy tax credits - net -- -- -- -- ----- -------- ------ ----- Total income taxes (199) 1,302 -- -- ----- -------- ------ ----- MINORITY INTERESTS -- -- -- -- ----- -------- ------ ----- INCOME FROM CONTINUING OPERATIONS 190 (1,778) 8,585 311 ----- -------- ------ ----- DISCONTINUED OPERATIONS Income from Discontinued Operations - Net of Taxes -- (544) -- -- Gain on Sale of Discontinued Operations - Net of Taxes -- (22,733) -- -- ----- -------- ------ ----- INCOME FROM DISCONTINUED OPERATIONS -- (23,277) -- -- ----- -------- ------ ----- Cumulative Effect of a change in Acct. Principle -- -- -- -- ----- -------- ------ ----- NET INCOME $ 190 $(25,055) $8,585 $ 311 ===== ======== ====== ===== PSEG AMERICAS PSEG II LUXEMBOURG LTD S.A.R.L. -------- ---------- REVENUES: Income from capital lease agreements $-- $-- Unrealized gains (losses) on investments -- -- Realized gains (losses) on investments -- -- Electric Revenues Generation -- -- Distribution -- -- Other -- -- Equity in subsidiary earnings -- -- --- --- Total revenues -- -- --- --- OPERATING EXPENSES: Operation and maintenance -- -- Write-down of project investments -- -- Depreciation and amortization -- -- Electric and Energy Costs -- -- Administrative and general -- -- --- --- Total operating expenses -- -- --- --- Income from partnerships -- -- Management/Development Fees -- -- Interest and dividend income -- -- Consulting and O&M fees -- -- --- --- Total Income from equity method investments -- -- --- --- OPERATING INCOME -- -- --- --- OTHER INCOME Write off of investments -- -- Change in Derivative Fair Value - FAS 133 -- -- Foreign currency Translation Gain/Loss -- -- Other -- -- --- --- Total Other Income -- -- --- --- INTEREST EXPENSE: PSEG Capital Corporation -- -- PSEG Energy Holdings' -- -- Other Associated Companies -- -- Other -- -- Capitalized interest -- -- --- --- Net interest expense -- -- --- --- INCOME BEFORE INCOME TAXES -- -- --- --- INCOME TAXES: Current -- -- Deferred -- -- Foreign Taxes -- -- Investment and energy tax credits - net -- -- --- --- Total income taxes -- -- --- --- MINORITY INTERESTS -- -- --- --- INCOME FROM CONTINUING OPERATIONS -- -- --- --- DISCONTINUED OPERATIONS Income from Discontinued Operations - Net of Taxes -- -- Gain on Sale of Discontinued Operations - Net of Taxes -- -- --- --- INCOME FROM DISCONTINUED OPERATIONS -- -- --- --- Cumulative Effect of a change in Acct. Principle -- -- --- --- NET INCOME $-- $-- === === PSEG AMERICAS LTD. CONSOLIDATING STATEMENT OF RETAINED EARNINGS FOR THE YEAR ENDED DECEMBER 31, 2003 (THOUSANDS) PSEG PERUVIAN AMERICAS INTERCOMPANY PSEG ASSOCIACION OPPORTUNITY LTD ELIMINATIONS AMERICAS EN COMPANY S.A.C. CONSOL. & RECLASS. LTD PARTICIPACION CAYMAN'S IV (POC) --------- ------------ --------- ------------- ----------- -------------- BALANCE JANUARY 1, 2003 $(508,375) $241,613 $(508,375) $(486) $ -- $(326) NET INCOME 194,306 (43,028) 194,306 383 (610) (48) --------- -------- --------- ----- ----- ----- TOTAL (314,069) 198,585 (314,069) (103) (610) (374) --------- -------- --------- ----- ----- ----- DIVIDENDS DECLARED -- -- -- -- -- -- --------- -------- --------- ----- ----- ----- --------- -------- --------- ----- ----- ----- BALANCE DECEMBER 31, 2003 $(314,069) $198,585 $(314,069) $(103) $(610) $(374) ========= ======== ========= ===== ===== ===== ANDINA PSEG VENERGY RAYO-ANDINO MENDOZA I BRAZIL HOLDINGS TERRA ROXA I GESTORA COMPANY OPERATING CO. COMPANY LTDA COMPANY (Cayman) (Cayman) (Cayman) (Cayman) (Cayman) --------- ------------- -------- ------------ ----------- BALANCE JANUARY 1, 2003 $-- $-- $2,815 $-- $-- NET INCOME -- -- 286 -- -- --- --- ------ --- --- TOTAL -- -- 3,101 -- -- --- --- ------ --- --- DIVIDENDS DECLARED -- -- -- -- -- --- --- ------ --- --- --- --- ------ --- --- BALANCE DECEMBER 31, 2003 $-- $-- $3,101 $-- $-- === === ====== === === PSEG AMERICAS LTD. CONSOLIDATING STATEMENT OF RETAINED EARNINGS FOR THE YEAR ENDED DECEMBER 31, 2003 (THOUSANDS) RAYO-ANDINO PSEG INVERSORA PSEG ARGENTINA PSEG COMPANY BRAZIL HOLDING CO AMERICAS CAYMAN CAYMAN (Cayman) LTDA LLC EDEERSA OPERATING CO AMERICAS I AMERICAS II ----------- ------- ---------- ------- ------------ ---------- ----------- BALANCE JANUARY 1, 2003 $-- $(6,895) $-- $(70) $(214,217) $-- $-- NET INCOME -- (284) -- -- (7,219) -- -- --- ------- --- ---- --------- --- --- TOTAL -- (7,179) -- (70) (221,436) -- -- --- ------- --- ---- --------- --- --- DIVIDENDS DECLARED -- -- -- -- -- -- -- --- ------- --- ---- --------- --- --- --- ------- --- ---- --------- --- --- BALANCE DECEMBER 31, 2003 $-- $(7,179) $-- $(70) $(221,436) $-- $-- === ======= === ==== ========= === === PSEG CAYMAN PSEG PSEG AMERICAS PERU POWER PSEG PSEG PSEG GLOBAL COMPANY LTD ELECTRICA BRAZIL II BRAZIL III FUNDING II INFRAMAX CONSOL. (Cayman) (Cayman) COMPANY COMPANY CORP CORP -------- ---------- --------- --------- ---------- ---------- -------- BALANCE JANUARY 1, 2003 $(72,577) $-- $-- $-- $-- $-- $-- NET INCOME 24 -- -- -- -- -- -- -------- --- --- --- --- --- --- TOTAL (72,553) -- -- -- -- -- -- -------- --- --- --- --- --- --- DIVIDENDS DECLARED -- -- -- -- -- -- -- -------- --- --- --- --- --- --- -------- --- --- --- --- --- --- BALANCE DECEMBER 31, 2003 $(72,553) $-- $-- $-- $-- $-- $-- ======== === === === === === === PSEG AMERICAS LTD. CONSOLIDATING STATEMENT OF RETAINED EARNINGS FOR THE YEAR ENDED DECEMBER 31, 2003 (THOUSANDS) INVERSIONES PSEG PSEG AMERICAS TRANSAMERICA PSEG PSEG CHILEAN CHILE HOLDING ENERGY BRAZIL PSEG BERMUDA EQUITY II LTD LIMITADA COMPANY INVESTMENT SALALAH HOLDINGS III CONSOL. CONSOL. CONSOL CONSOL. CONSOL. CONSOL. ------------- ------------- ------------ ---------- ------- ------------ BALANCE JANUARY 1, 2003 $55,882 $16,540 $15,409 $(37,247) $(2,220) $(27,059) NET INCOME 15,081 20,059 15,877 14,051 1,397 190 ------- ------- ------- -------- ------- -------- TOTAL 70,963 36,599 31,286 (23,196) (823) (26,869) ------- ------- ------- -------- ------- -------- DIVIDENDS DECLARED -- -- -- -- -- -- ------- ------- ------- -------- ------- -------- ------- ------- ------- -------- ------- -------- BALANCE DECEMBER 31, 2003 $70,963 $36,599 $31,286 $(23,196) $ (823) $(26,869) ======= ======= ======= ======== ======= ======== RAYO-ANDINO SERVICIOS PSEG INVERSORA PSEG TECHNICOS AMERICAS PSEG COMPANY CHINA PSEG CHILE II LUXEMBOURG CONSOL. INC LTDA LTD S.A.R.L. ----------- ------- ---------- -------- ---------- BALANCE JANUARY 1, 2003 $ 12,513 $16,487 $(162) $-- $-- NET INCOME (25,055) 8,585 311 -- -- -------- ------- ----- --- --- TOTAL (12,542) 25,072 149 -- -- -------- ------- ----- --- --- DIVIDENDS DECLARED -- -- -- -- -- -------- ------- ----- --- --- -------- ------- ----- --- --- BALANCE DECEMBER 31, 2003 $(12,542) $25,072 $ 149 $-- $-- ======== ======= ===== === === PSEG AMERICAS LTD. CONSOLIDATING BALANCE SHEET FOR THE YEAR ENDED DECEMBER 31, 2003 (THOUSANDS) PSEG PERUVIAN AMERICAS INTERCOMPANY PSEG ASSOCIACION OPPORTUNITY LTD ELIMINATIONS AMERICAS EN COMPANY S.A.C. CONSOL. & RECLASS. LTD PARTICIPACION CAYMAN'S IV (POC) ----------- ------------ ---------- ------------- ----------- -------------- ASSETS CURRENT ASSETS Cash and temporary cash investments $ 122,085 $ -- $ 151 $ -- $ 20,007 $ 9,523 Accounts and Notes receivable: Trade 64,453 -- (115) -- -- 31 Other 15,561 -- 11 -- -- -- PSE&G -- -- -- -- -- -- PSEG (85) -- -- -- -- -- PSEG Energy Holdings -- -- -- -- -- -- Other associated companies 1,074,838 -- 408,345 49,472 44,083 43,860 Notes receivable: Associated companies -- -- -- -- -- -- Other -- -- -- -- -- -- Interest receivable -- -- -- -- -- -- Fuel 1,821 -- -- -- -- -- Materials 10,404 -- -- -- -- -- Assets held for sale -- -- -- -- -- -- Current Assets of Disc Ops 276,509 -- -- -- -- -- Prepayments 1,919 -- -- -- -- -- ----------- ----------- ---------- -------- -------- -------- Total Current Assets 1,567,505 -- 408,392 49,472 64,090 53,414 ----------- ----------- ---------- -------- -------- -------- PROPERTY, PLANT AND EQUIPMENT Real estate 14,720 -- -- -- -- -- Generation & Distribution Assets 690,353 -- -- -- -- -- Furniture & Equipment 56,726 -- -- -- -- -- Construction Work In process 19,490 -- -- -- -- -- Other 4,568 -- -- -- -- -- Accum. depr. and amortization (125,048) -- -- -- -- -- Valuation allowances -- -- -- -- -- -- ----------- ----------- ---------- -------- -------- -------- Property, Plant and Equipment-net 660,809 -- -- -- -- -- ----------- ----------- ---------- -------- -------- -------- INVESTMENTS Subsidiaries 38,517 (1,326,572) 1,326,572 (834) -- -- Capital lease agreements -- . -- -- -- -- Limited partnership interests -- -- -- -- -- -- General partnership interests -- -- -- -- -- -- Corporate joint ventures 677,060 -- 258,043 (27,295) 45,031 (51,708) Securities -- -- -- -- -- -- Valuation allowances -- -- -- -- -- -- ----------- ----------- ---------- -------- -------- -------- Total Investments 715,577 (1,326,572) 1,584,615 (28,129) 45,031 (51,708) ----------- ----------- ---------- -------- -------- -------- OTHER ASSETS Long Term Other Receivable 1,995 -- -- -- -- -- Goodwill 482,641 -- -- -- -- -- Derivative Asset (101) -- (394) -- -- -- Deferred Tax Asset 31,378 -- -- -- -- -- Deferred Finance Costs 12,214 -- -- -- -- -- Project Start up Costs 4,931 -- -- -- -- -- Restricted Cash -- -- -- -- -- -- Prepaid Pension 45 -- 32 -- -- -- Intangibles 663 -- -- -- -- -- Other 2,182 -- -- -- -- -- ----------- ----------- ---------- -------- -------- -------- Total Other Assets 535,948 -- (362) -- -- -- ----------- ----------- ---------- -------- -------- -------- TOTAL ASSETS $ 3,479,839 $(1,326,572) $1,992,645 $ 21,343 $109,121 $ 1,706 =========== =========== ========== ======== ======== ======== ANDINA PSEG VENERGY RAYO-ANDINO MENDOZA I BRAZIL HOLDINGS TERRA ROXA I GESTORA COMPANY OPERATING CO. COMPANY LTDA COMPANY (Cayman) (Cayman) (Cayman) (Cayman) (Cayman) --------- ------------- -------- ------------ ----------- ASSETS CURRENT ASSETS Cash and temporary cash investments $-- $-- $ 1,006 $-- $-- Accounts and Notes receivable: Trade -- -- -- -- -- Other -- -- -- -- -- PSE&G -- -- -- -- -- PSEG -- -- -- -- -- PSEG Energy Holdings -- -- -- -- -- Other associated companies -- -- 9,552 -- -- Notes receivable: Associated companies -- -- -- -- -- Other -- -- -- -- -- Interest receivable -- -- -- -- -- Fuel -- -- -- -- -- Materials -- -- -- -- -- Assets held for sale -- -- -- -- -- Current Assets of Disc Ops -- -- -- -- -- Prepayments -- -- 109 -- -- --- --- ------- --- --- Total Current Assets -- -- 10,667 -- -- --- --- ------- --- --- PROPERTY, PLANT AND EQUIPMENT Real estate -- -- -- -- -- Generation & Distribution Assets -- -- -- -- -- Furniture & Equipment -- -- -- -- -- Construction Work In process -- -- -- -- -- Other -- -- -- -- -- Accum. depr. and amortization -- -- -- -- -- Valuation allowances -- -- -- -- -- --- --- ------- --- --- Property, Plant and Equipment-net -- -- -- -- -- --- --- ------- --- --- INVESTMENTS Subsidiaries -- -- -- -- -- Capital lease agreements -- -- -- -- -- Limited partnership interests -- -- -- -- -- General partnership interests -- -- -- -- -- Corporate joint ventures -- -- 38,445 -- -- Securities -- -- -- -- -- Valuation allowances -- -- -- -- -- --- --- ------- --- --- Total Investments -- -- 38,445 -- -- --- --- ------- --- --- OTHER ASSETS Long Term Other Receivable -- -- -- -- -- Goodwill -- -- -- -- -- Derivative Asset -- -- -- -- -- Deferred Tax Asset -- -- -- -- -- Deferred Finance Costs -- -- -- -- -- Project Start up Costs -- -- -- -- -- Restricted Cash -- -- -- -- -- Prepaid Pension -- -- -- -- -- Intangibles -- -- -- -- -- Other -- -- -- -- -- --- --- ------- --- --- Total Other Assets -- -- -- -- -- --- --- ------- --- --- TOTAL ASSETS $-- $-- $49,112 $-- $-- === === ======= === === PSEG AMERICAS LTD. CONSOLIDATING BALANCE SHEET FOR THE YEAR ENDED DECEMBER 31, 2003 (THOUSANDS) RAYO-ANDINO PSEG INVERSORA PSEG ARGENTINA PSEG COMPANY BRAZIL HOLDING CO AMERICAS CAYMAN CAYMAN (Cayman) LTDA LLC EDEERSA OPERATING CO AMERICAS I AMERICAS II ----------- ------ ---------- ------- ------------ ---------- ----------- ASSETS CURRENT ASSETS Cash and temporary cash investments $-- $ 55 $-- $-- $ -- $-- $-- Accounts and Notes receivable: Trade -- -- -- -- -- -- -- Other -- 4 -- -- -- -- -- PSE&G -- -- -- -- -- -- -- PSEG -- -- -- -- -- -- -- PSEG Energy Holdings -- -- -- -- -- -- -- Other associated companies -- 1,580 -- -- 26,305 -- -- Notes receivable: Associated companies -- -- -- -- -- -- -- Other -- -- -- -- -- -- -- Interest receivable -- -- -- -- -- -- -- Fuel -- -- -- -- -- -- -- Materials -- -- -- -- -- -- -- Assets held for sale -- -- -- -- -- -- -- Current Assets of Disc Ops -- -- -- -- -- -- -- Prepayments -- -- -- -- -- -- -- --- ------ --- --- ------- --- --- Total Current Assets -- 1,639 -- -- 26,305 -- -- --- ------ --- --- ------- --- --- PROPERTY, PLANT AND EQUIPMENT Real estate -- -- -- -- -- -- -- Generation & Distribution Assets -- -- -- -- -- -- -- Furniture & Equipment -- 22 -- -- -- -- -- Construction Work In process -- -- -- -- -- -- -- Other -- -- -- -- -- -- -- Accum. depr. and amortization -- (17) -- -- -- -- -- Valuation allowances -- -- -- -- -- -- -- --- ------ --- --- ------- --- --- Property, Plant and Equipment-net -- 5 -- -- -- -- -- --- ------ --- --- ------- --- --- INVESTMENTS Subsidiaries -- -- -- -- 39,346 -- -- Capital lease agreements -- -- -- -- -- -- -- Limited partnership interests -- -- -- -- -- -- -- General partnership interests -- -- -- -- -- -- -- Corporate joint ventures -- -- -- -- -- -- -- Securities -- -- -- -- -- -- -- Valuation allowances -- -- -- -- -- -- -- --- ------ --- --- ------- --- --- Total Investments -- -- -- -- 39,346 -- -- --- ------ --- --- ------- --- --- OTHER ASSETS Long Term Other Receivable -- -- -- -- -- -- -- Goodwill -- -- -- -- -- -- -- Derivative Asset -- -- -- -- -- -- -- Deferred Tax Asset -- -- -- -- -- -- -- Deferred Finance Costs -- -- -- -- -- -- -- Project Start up Costs -- -- -- -- -- -- -- Restricted Cash -- -- -- -- -- -- -- Prepaid Pension -- -- -- -- -- -- -- Intangibles -- -- -- -- -- -- -- Other -- -- -- -- -- -- -- --- ------ --- --- ------- --- --- Total Other Assets -- -- -- -- -- -- -- --- ------ --- --- ------- --- --- TOTAL ASSETS $-- $1,644 $-- $-- $65,651 $-- $-- === ====== === === ======= === === PSEG CAYMAN PSEG PSEG AMERICAS PERU POWER PSEG PSEG PSEG GLOBAL COMPANY LTD ELECTRICA BRAZIL II BRAZIL III FUNDING II INFRAMAX CONSOL. (Cayman) (Cayman) COMPANY COMPANY CORP CORP -------- ---------- --------- --------- ---------- ---------- -------- ASSETS CURRENT ASSETS Cash and temporary cash investments $ -- $-- $-- $-- $-- $ -- $-- Accounts and Notes receivable: Trade -- -- -- -- -- -- -- Other -- -- -- -- -- 1 -- PSE&G -- -- -- -- -- -- -- PSEG -- -- -- -- -- -- -- PSEG Energy Holdings -- -- -- -- -- -- -- Other associated companies 4,479 -- -- -- -- 2,405 -- Notes receivable: Associated companies -- -- -- -- -- -- -- Other -- -- -- -- -- -- -- Interest receivable -- -- -- -- -- -- -- Fuel -- -- -- -- -- -- -- Materials -- -- -- -- -- -- -- Assets held for sale -- -- -- -- -- -- -- Current Assets of Disc Ops -- -- -- -- -- -- -- Prepayments -- -- -- -- -- -- -- ------ --- --- --- --- ------ --- Total Current Assets 4,479 -- -- -- -- 2,406 -- ------ --- --- --- --- ------ --- PROPERTY, PLANT AND EQUIPMENT Real estate -- -- -- -- -- -- -- Generation & Distribution Assets -- -- -- -- -- -- -- Furniture & Equipment -- -- -- -- -- -- -- Construction Work In process -- -- -- -- -- -- -- Other -- -- -- -- -- -- -- Accum. depr. and amortization -- -- -- -- -- -- -- Valuation allowances -- -- -- -- -- -- -- ------ --- --- --- --- ------ --- Property, Plant and Equipment-net -- -- -- -- -- -- -- ------ --- --- --- --- ------ --- INVESTMENTS Subsidiaries -- -- -- -- -- -- -- Capital lease agreements -- -- -- -- -- -- -- Limited partnership interests -- -- -- -- -- -- -- General partnership interests -- -- -- -- -- -- -- Corporate joint ventures -- -- -- -- -- -- -- Securities -- -- -- -- -- -- -- Valuation allowances -- -- -- -- -- -- -- ------ --- --- --- --- ------ --- Total Investments -- -- -- -- -- -- -- ------ --- --- --- --- ------ --- OTHER ASSETS Long Term Other Receivable -- -- -- -- -- -- -- Goodwill -- -- -- -- -- -- -- Derivative Asset -- -- -- -- -- -- -- Deferred Tax Asset -- -- -- -- -- -- -- Deferred Finance Costs -- -- -- -- -- -- -- Project Start up Costs -- -- -- -- -- -- -- Restricted Cash -- -- -- -- -- -- -- Prepaid Pension -- -- -- -- -- -- -- Intangibles -- -- -- -- -- -- -- Other -- -- -- -- -- -- -- ------ --- --- --- --- ------ --- Total Other Assets -- -- -- -- -- -- -- ------ --- --- --- --- ------ --- TOTAL ASSETS $4,479 $-- $-- $-- $-- $2,406 $-- ====== === === === === ====== === PSEG AMERICAS LTD. CONSOLIDATING BALANCE SHEET FOR THE YEAR ENDED DECEMBER 31, 2003 (THOUSANDS) INVERSIONES PSEG PSEG AMERICAS TRANSAMERICA PSEG PSEG CHILEAN CHILE HOLDING ENERGY BRAZIL PSEG BERMUDA EQUITY II LTD LIMITADA COMPANY INVESTMENT SALALAH HOLDINGS III CONSOL. CONSOL. CONSOL CONSOL. CONSOL. CONSOL. ------------- ------------- ------------ ---------- --------- ------------ ASSETS CURRENT ASSETS Cash and temporary cash investments $ 25 $ 14,516 $ 21,418 $ -- $ 48,744 $ 8 Accounts and Notes receivable: Trade (37) 40,317 7,900 3 16,302 -- Other 1 14,768 707 -- 60 -- PSE&G -- -- -- -- -- -- PSEG -- -- -- (85) -- -- PSEG Energy Holdings -- -- -- -- -- -- Other associated companies 112,350 179,603 182,761 2,954 888 412 Notes receivable: Associated companies -- -- -- -- -- -- Other -- -- -- -- -- -- Interest receivable -- -- -- -- -- -- Fuel -- -- -- -- 1,821 -- Materials -- 8,467 1,504 -- 433 -- Assets held for sale -- -- -- -- -- -- Current Assets of Disc Ops -- -- -- -- -- -- Prepayments -- 733 181 -- 896 -- -------- --------- -------- -------- -------- ---- Total Current Assets 112,339 258,404 214,471 2,872 69,144 420 -------- --------- -------- -------- -------- ---- PROPERTY, PLANT AND EQUIPMENT Real estate -- 11,416 3,304 -- -- -- Generation & Distribution Assets -- 415,511 79,548 -- 195,294 -- Furniture & Equipment -- -- 56,388 -- 316 -- Construction Work In process -- 12,914 586 -- 5,990 -- Other -- -- 4,209 -- 326 -- Accum. depr. and amortization -- (109,366) (7,749) -- (7,916) -- Valuation allowances -- -- -- -- -- -- -------- --------- -------- -------- -------- ---- Property, Plant and Equipment-net -- 330,475 136,286 -- 194,010 -- -------- --------- -------- -------- -------- ---- INVESTMENTS Subsidiaries (1) -- -- -- -- -- Capital lease agreements -- -- -- -- -- -- Limited partnership interests -- -- -- -- -- -- General partnership interests -- -- -- -- -- -- Corporate joint ventures 182,793 (97,545) 359 163,796 15 -- Securities -- -- -- -- -- -- Valuation allowances -- -- -- -- -- -- -------- --------- -------- -------- -------- ---- Total Investments 182,792 (97,545) 359 163,796 15 -- -------- --------- -------- -------- -------- ---- OTHER ASSETS Long Term Other Receivable -- 1,995 -- -- -- -- Goodwill -- 349,274 133,367 -- -- -- Derivative Asset 609 (316) -- -- -- -- Deferred Tax Asset -- 30,958 -- -- -- -- Deferred Finance Costs -- 5,448 237 -- 6,529 -- Project Start up Costs -- (329) -- -- 5,260 -- Restricted Cash -- -- -- -- -- -- Prepaid Pension -- -- -- 13 -- -- Intangibles -- -- 663 -- -- -- Other -- 2,182 -- -- -- -- -------- --------- -------- -------- -------- ---- Total Other Assets 609 389,212 134,267 13 11,789 -- -------- --------- -------- -------- -------- ---- TOTAL ASSETS $295,740 $ 880,546 $485,383 $166,681 $274,958 $420 ======== ========= ======== ======== ======== ==== RAYO-ANDINO SERVICIOS PSEG INVERSORA PSEG TECHNICOS AMERICAS PSEG COMPANY CHINA PSEG CHILE II LUXEMBOURG CONSOL. INC LTDA LTD S.A.R.L. ----------- -------- ---------- -------- ---------- ASSETS CURRENT ASSETS Cash and temporary cash investments $ 6,521 $ -- $ 86 $-- $25 Accounts and Notes receivable: Trade -- 52 -- -- -- Other 12 1 -- (4) -- PSE&G -- -- -- -- -- PSEG -- -- -- -- -- PSEG Energy Holdings -- -- -- -- -- Other associated companies 2,258 4,044 (523) 10 -- Notes receivable: Associated companies -- -- -- -- -- Other -- -- -- -- -- Interest receivable -- -- -- -- -- Fuel -- -- -- -- -- Materials -- -- -- -- -- Assets held for sale -- -- -- -- -- Current Assets of Disc Ops 276,509 -- -- -- -- Prepayments -- -- -- -- -- -------- -------- ----- --- --- Total Current Assets 285,300 4,097 (437) 6 25 -------- -------- ----- --- --- PROPERTY, PLANT AND EQUIPMENT Real estate -- -- -- -- -- Generation & Distribution Assets -- -- -- -- -- Furniture & Equipment -- -- -- -- -- Construction Work In process -- -- -- -- -- Other 33 -- -- -- -- Accum. depr. and amortization -- -- -- -- -- Valuation allowances -- -- -- -- -- -------- -------- ----- --- --- Property, Plant and Equipment-net 33 -- -- -- -- -------- -------- ----- --- --- INVESTMENTS Subsidiaries -- -- -- 6 -- Capital lease agreements -- -- -- -- -- Limited partnership interests -- -- -- -- -- General partnership interests -- -- -- -- -- Corporate joint ventures -- 165,124 2 -- -- Securities -- -- -- -- -- Valuation allowances -- -- -- -- -- -------- -------- ----- --- --- Total Investments -- 165,124 2 6 -- -------- -------- ----- --- --- OTHER ASSETS Long Term Other Receivable -- -- -- -- -- Goodwill -- -- -- -- -- Derivative Asset -- -- -- -- -- Deferred Tax Asset 420 -- -- -- -- Deferred Finance Costs -- -- -- -- -- Project Start up Costs -- -- -- -- -- Restricted Cash -- -- -- -- -- Prepaid Pension -- -- -- -- -- Intangibles -- -- -- -- -- Other -- -- -- -- -- -------- -------- ----- --- --- Total Other Assets 420 -- -- -- -- -------- -------- ----- --- --- TOTAL ASSETS $285,753 $169,221 $(435) $12 $25 ======== ======== ===== === === PSEG AMERICAS LTD. CONSOLIDATING BALANCE SHEET FOR THE YEAR ENDED DECEMBER 31, 2003 (THOUSANDS) PSEG PERUVIAN AMERICAS INTERCOMPANY PSEG ASSOCIACION OPPORTUNITY LTD ELIMINATIONS AMERICAS EN CAYMAN'S COMPANY S.A.C. CONSOL. & RECLASS. LTD PARTICIPACION IV (POC) ---------- ------------ ---------- ------------- -------- -------------- LIABILITIES AND STOCKHOLDER'S EQUITY CURRENT LIABILITIES Accounts payable: Trade $ 38,886 $ -- $ -- $ -- $ -- $ -- Taxes 1,907 -- -- -- -- -- Other 34,923 -- 531 -- -- -- Interest 5,333 -- (4,901) -- -- -- Associated companies 1,387,128 -- 739,981 1,246 64,700 2,056 Notes payable: PSEG Capital Corporation -- -- -- -- -- -- Enterprise Capital Funding Corp. -- -- -- -- -- -- Enterprise Group Development Corp. -- -- -- -- -- -- Enterprise Diversified Holdings Inc. -- -- -- -- -- -- Associated Companies 9,609 -- -- -- -- -- Other -- -- -- -- -- -- Liabilities of DISC OPS 241,764 -- -- -- -- -- Current portion of long-term debt 29,422 -- -- -- -- -- ---------- ----------- ---------- ------- -------- ------ Total Current Liabilities 1,748,972 -- 735,611 1,246 64,700 2,056 ---------- ----------- ---------- ------- -------- ------ TOTAL LONG-TERM DEBT 438,590 -- -- -- -- -- ---------- ----------- ---------- ------- -------- ------ DEFERRED CREDITS Deferred income taxes (131,808) -- (130,499) -- -- 24 Deferred investment -- -- -- -- -- -- and energy tax credits -- -- -- -- -- -- Derivative Liability 24,248 -- -- -- -- -- Other (674) -- 126 -- -- -- ---------- ----------- ---------- ------- -------- ------ Total Deferred Credits (108,234) -- (130,373) -- -- 24 ---------- ----------- ---------- ------- -------- ------ MINORITY INTEREST 13,104 -- -- -- -- -- ---------- ----------- ---------- ------- -------- ------ STOCKHOLDER'S EQUITY Capital stock 12 (15) 12 -- -- -- Stock Subs Payable -- -- -- -- -- -- Contributed capital 1,928,388 (1,753,794) 1,928,388 20,200 45,031 -- Retained earnings (314,069) 198,585 (314,069) (103) (610) (374) Other Comprehensive Income (13,958) 13,958 (13,958) -- -- -- Cumulative Translation Adjustment (212,966) 214,694 (212,966) -- -- -- ---------- ----------- ---------- ------- -------- ------ Total Stockholder's Equity 1,387,407 (1,326,572) 1,387,407 20,097 44,421 (374) ---------- ----------- ---------- ------- -------- ------ TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY $3,479,839 $(1,326,572) $1,992,645 $21,343 $109,121 $1,706 ========== =========== ========== ======= ======== ====== ANDINA PSEG VENERGY RAYO-ANDINO MENDOZA I BRAZIL HOLDINGS TERRA ROXA I GESTORA COMPANY OPERATING CO. COMPANY LTDA COMPANY (Cayman) (Cayman) (Cayman) (Cayman) (Cayman) --------- ------------- -------- ------------ ----------- LIABILITIES AND STOCKHOLDER'S EQUITY CURRENT LIABILITIES Accounts payable: Trade $-- $-- $ -- $-- $-- Taxes -- -- -- -- -- Other -- -- 3 -- -- Interest -- -- -- -- -- Associated companies -- -- 7,226 -- -- Notes payable: PSEG Capital Corporation -- -- -- -- -- Enterprise Capital Funding Corp. -- -- -- -- -- Enterprise Group Development Corp. -- -- -- -- -- Enterprise Diversified Holdings Inc. -- -- -- -- -- Associated Companies -- -- -- -- -- Other -- -- -- -- -- Liabilities of DISC OPS -- -- -- -- -- Current portion of long-term debt -- -- -- -- -- --- --- ------- --- --- Total Current Liabilities -- -- 7,229 -- -- --- --- ------- --- --- TOTAL LONG-TERM DEBT -- -- -- -- -- --- --- ------- --- --- DEFERRED CREDITS Deferred income taxes -- -- (28) -- -- Deferred investment -- -- -- -- -- and energy tax credits -- -- -- -- -- Derivative Liability -- -- -- -- -- Other -- -- -- -- -- --- --- ------- --- --- Total Deferred Credits -- -- (28) -- -- --- --- ------- --- --- MINORITY INTEREST -- -- -- -- -- --- --- ------- --- --- STOCKHOLDER'S EQUITY Capital stock -- -- -- -- -- Stock Subs Payable -- -- -- -- -- Contributed capital -- -- 38,810 -- -- Retained earnings -- -- 3,101 -- -- Other Comprehensive Income -- -- -- -- -- Cumulative Translation Adjustment -- -- -- -- -- --- --- ------- --- --- Total Stockholder's Equity -- -- 41,911 -- -- --- --- ------- --- --- TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY $-- $-- $49,112 $-- $-- === === ======= === === PSEG AMERICAS LTD. CONSOLIDATING BALANCE SHEET FOR THE YEAR ENDED DECEMBER 31, 2003 (THOUSANDS) RAYO-ANDINO PSEG INVERSORA PSEG ARGENTINA PSEG COMPANY BRAZIL HOLDING CO AMERICAS (Cayman) LTDA LLC EDEERSA OPERATING CO ----------- ------- ---------- ------- ------------ LIABILITIES AND STOCKHOLDER'S EQUITY CURRENT LIABILITIES Accounts payable: Trade $-- $ -- $-- $ -- $ 16 Taxes -- -- -- -- -- Other -- -- -- -- -- Interest -- -- -- -- 4,901 Associated companies -- 8,983 -- 77 172,233 Notes payable: PSEG Capital Corporation -- -- -- -- -- Enterprise Capital Funding Corp. -- -- -- -- -- Enterprise Group Development Corp. -- -- -- -- -- Enterprise Diversified Holdings Inc. -- -- -- -- -- Associated Companies -- -- -- -- -- Other -- -- -- -- -- Liabilities of DISC OPS -- -- -- -- -- Current portion of long-term debt -- -- -- -- -- --- ------- --- ---- --------- Total Current Liabilities -- 8,983 -- 77 177,150 --- ------- --- ---- --------- TOTAL LONG-TERM DEBT -- -- -- -- -- --- ------- --- ---- --------- DEFERRED CREDITS Deferred income taxes -- (475) -- (7) (364) Deferred investment -- -- -- -- -- and energy tax credits -- -- -- -- -- Derivative Liability -- -- -- -- -- Other -- -- -- -- -- --- ------- --- ---- --------- Total Deferred Credits -- (475) -- (7) (364) --- ------- --- ---- --------- MINORITY INTEREST -- -- -- -- -- --- ------- --- ---- --------- STOCKHOLDER'S EQUITY Capital stock -- -- -- -- -- Stock Subs Payable -- -- -- -- -- Contributed capital 315 -- -- 110,301 Retained earnings -- (7,179) -- (70) (221,436) Other Comprehensive Income -- -- -- -- -- Cumulative Translation Adjustment -- -- -- -- -- --- ------- --- ---- --------- Total Stockholder's Equity -- (6,864) -- (70) (111,135) --- ------- --- ---- --------- TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY $-- $ 1,644 $-- $ -- $ 65,651 === ======= === ==== ========= PSEG CAYMAN PSEG AMERICAS PERU POWER PSEG CAYMAN CAYMAN COMPANY LTD ELECTRICA AMERICAS I AMERICAS II CONSOL. (Cayman) (Cayman) ---------- ----------- -------- ---------- --------- LIABILITIES AND STOCKHOLDER'S EQUITY CURRENT LIABILITIES Accounts payable: Trade $-- $-- $ -- $-- $-- Taxes -- -- -- -- -- Other -- -- -- -- -- Interest -- -- -- -- -- Associated companies -- -- 38,472 -- -- Notes payable: PSEG Capital Corporation -- -- -- -- -- Enterprise Capital Funding Corp. -- -- -- -- -- Enterprise Group Development Corp. -- -- -- -- -- Enterprise Diversified Holdings Inc. -- -- -- -- -- Associated Companies -- -- -- -- -- Other -- -- -- -- -- Liabilities of DISC OPS -- -- -- -- -- Current portion of long-term debt -- -- -- -- -- --- --- -------- --- --- Total Current Liabilities -- -- 38,472 -- -- --- --- -------- --- --- TOTAL LONG-TERM DEBT -- -- -- -- -- --- --- -------- --- --- DEFERRED CREDITS Deferred income taxes -- -- 611 -- -- Deferred investment -- -- -- -- -- and energy tax credits -- -- -- -- -- Derivative Liability -- -- -- -- -- Other -- -- -- -- -- --- --- -------- --- --- Total Deferred Credits -- -- 611 -- -- --- --- -------- --- --- MINORITY INTEREST -- -- -- -- -- --- --- -------- --- --- STOCKHOLDER'S EQUITY Capital stock -- -- -- -- -- Stock Subs Payable -- -- -- -- -- Contributed capital -- -- 37,949 -- -- Retained earnings -- -- (72,553) -- -- Other Comprehensive Income -- -- -- -- -- Cumulative Translation Adjustment -- -- -- -- -- --- --- -------- --- --- Total Stockholder's Equity -- -- (34,604) -- -- --- --- -------- --- --- TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY $-- $-- $ 4,479 $-- $-- === === ======== === === PSEG PSEG PSEG GLOBAL BRAZIL II BRAZIL III FUNDING II INFRAMAX COMPANY COMPANY CORP CORP --------- ---------- ---------- -------- LIABILITIES AND STOCKHOLDER'S EQUITY CURRENT LIABILITIES Accounts payable: Trade $-- $-- $ -- $-- Taxes -- -- -- -- Other -- -- -- -- Interest -- -- -- -- Associated companies -- -- -- -- Notes payable: PSEG Capital Corporation -- -- -- -- Enterprise Capital Funding Corp. -- -- -- -- Enterprise Group Development Corp. -- -- -- -- Enterprise Diversified Holdings Inc. -- -- -- -- Associated Companies -- -- -- -- Other -- -- -- -- Liabilities of DISC OPS -- -- -- -- Current portion of long-term debt -- -- -- -- --- --- ------ --- Total Current Liabilities -- -- -- -- --- --- ------ --- TOTAL LONG-TERM DEBT -- -- -- -- --- --- ------ --- DEFERRED CREDITS Deferred income taxes -- -- -- -- Deferred investment -- -- -- -- and energy tax credits -- -- -- -- Derivative Liability -- -- -- -- Other -- -- -- -- --- --- ------ --- Total Deferred Credits -- -- -- -- --- --- ------ --- MINORITY INTEREST -- -- -- -- --- --- ------ --- STOCKHOLDER'S EQUITY Capital stock -- -- 1 -- Stock Subs Payable -- -- -- -- Contributed capital -- -- 2,405 -- Retained earnings -- -- -- -- Other Comprehensive Income -- -- -- -- Cumulative Translation Adjustment -- -- -- -- --- --- ------ --- Total Stockholder's Equity -- -- 2,406 -- --- --- ------ --- TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY $-- $-- $2,406 $-- === === ====== === PSEG AMERICAS LTD. CONSOLIDATING BALANCE SHEET FOR THE YEAR ENDED DECEMBER 31, 2003 (THOUSANDS) INVERSIONES PSEG PSEG AMERICAS TRANSAMERICA PSEG PSEG CHILEAN CHILE HOLDING ENERGY BRAZIL PSEG BERMUDA EQUITY II LTD LIMITADA COMPANY INVESTMENT SALALAH HOLDINGS III CONSOL. CONSOL. CONSOL CONSOL. CONSOL. CONSOL. ------------- ------------- ------------ ---------- -------- ------------ LIABILITIES AND STOCKHOLDER'S EQUITY CURRENT LIABILITIES Accounts payable: Trade $ -- $ 17,474 $ 6,183 $ -- $ 15,209 $ -- Taxes -- -- 1,497 410 -- -- Other -- 16,309 11,697 -- 732 -- Interest -- 1,437 -- -- 3,896 -- Associated companies 18,722 36,054 177,619 53,365 15,681 4,163 Notes payable: PSEG Capital Corporation -- -- -- -- -- -- Enterprise Capital Funding Corp. -- -- -- -- -- -- Enterprise Group Development Corp. -- -- -- -- -- -- Enterprise Diversified Holdings Inc. -- -- -- -- -- -- Associated Companies -- -- -- 9,609 -- -- Other -- -- -- -- -- -- Liabilities of DISC OPS -- -- -- -- -- -- Current portion of long-term debt -- 21,335 -- -- 8,087 -- -------- -------- -------- --------- -------- -------- Total Current Liabilities 18,722 92,609 196,996 63,384 43,605 4,163 -------- -------- -------- --------- -------- -------- TOTAL LONG-TERM DEBT -- 145,371 100,388 -- 192,831 -- -------- -------- -------- --------- -------- -------- DEFERRED CREDITS Deferred income taxes (5,937) 25,844 15,314 (22,098) (9,383) (12,763) Deferred investment -- -- -- -- -- -- and energy tax credits -- -- -- -- -- -- Derivative Liability -- 1,107 -- 62 23,079 -- Other -- 4,117 (5,168) 251 -- -- -------- -------- -------- --------- -------- -------- Total Deferred Credits (5,937) 31,068 10,146 (21,785) 13,696 (12,763) -------- -------- -------- --------- -------- -------- MINORITY INTEREST -- 6,869 -- -- 6,235 -- -------- -------- -------- --------- -------- -------- STOCKHOLDER'S EQUITY Capital stock 1 -- -- -- -- -- Stock Subs Payable -- -- -- -- -- -- Contributed capital 255,577 510,783 146,567 376,198 34,095 35,889 Retained earnings 70,963 36,599 31,286 (23,196) (823) (26,869) Other Comprehensive Income -- 278 -- (276) (14,681) -- Cumulative Translation Adjustment (43,586) 56,969 -- (227,644) -- -- -------- -------- -------- --------- -------- -------- Total Stockholder's Equity 282,955 604,629 177,853 125,082 18,591 9,020 -------- -------- -------- --------- -------- -------- TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY $295,740 $880,546 $485,383 $ 166,681 $274,958 $ 420 ======== ======== ======== ========= ======== ======== RAYO-ANDINO SERVICIOS PSEG INVERSORA PSEG TECHNICOS AMERICAS PSEG COMPANY CHINA PSEG CHILE II LUXEMBOURG CONSOL. INC LTDA LTD S.A.R.L. ----------- -------- ---------- -------- ---------- LIABILITIES AND STOCKHOLDER'S EQUITY CURRENT LIABILITIES Accounts payable: Trade $ 4 $ -- $ -- $-- $-- Taxes -- -- -- -- -- Other 5,651 -- -- -- -- Interest -- -- -- -- -- Associated companies 9,830 37,367 (659) 12 -- Notes payable: PSEG Capital Corporation -- -- -- -- -- Enterprise Capital Funding Corp. -- -- -- -- -- Enterprise Group Development Corp. -- -- -- -- -- Enterprise Diversified Holdings Inc. -- -- -- -- -- Associated Companies -- -- -- -- -- Other -- -- -- -- -- Liabilities of DISC OPS 241,764 -- -- -- -- Current portion of long-term debt -- -- -- -- -- -------- -------- ----- --- --- Total Current Liabilities 257,249 37,367 (659) 12 -- -------- -------- ----- --- --- TOTAL LONG-TERM DEBT -- -- -- -- -- -------- -------- ----- --- --- DEFERRED CREDITS Deferred income taxes 1,460 6,493 -- -- -- Deferred investment -- -- -- -- -- and energy tax credits -- -- -- -- -- Derivative Liability -- -- -- -- -- Other -- -- -- -- -- -------- -------- ----- --- --- Total Deferred Credits 1,460 6,493 -- -- -- -------- -------- ----- --- --- MINORITY INTEREST -- -- -- -- -- -------- -------- ----- --- --- STOCKHOLDER'S EQUITY Capital stock 12 1 -- -- -- Stock Subs Payable -- -- -- -- -- Contributed capital 41,390 98,184 75 -- 25 Retained earnings (12,542) 25,072 149 -- -- Other Comprehensive Income (1,817) 2,538 -- -- -- Cumulative Translation Adjustment 1 (434) -- -- -- -------- -------- ----- --- --- Total Stockholder's Equity 27,044 125,361 224 -- 25 -------- -------- ----- --- --- TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY $285,753 $169,221 $(435) $12 $25 ======== ======== ===== === === INVERSIONES PSEG AMERICAS CHILE HOLDING LIMITADA CONSOLIDATING STATEMENT OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 2003 (THOUSANDS) INVERSIONES PSEG AMERICAS EMPRESA SOCIEDAD CHILE HOLDING INTERCOMPANY ELECTRICA DE LA AUSTRAL DE LIMITADA ELIMINATIONS FRONTERA S.A. ELECTRICIDAD S.A. CONSOL. & RECLASS. (Frontel) (Saesa) ------------- ------------ --------------- ----------------- REVENUES: Income from capital lease agreements $ -- $ -- $ -- $ -- Unrealized gains (losses) on investments -- -- -- -- Realized gains (losses) on investments -- -- -- -- Other 21,240 -- -- 21,240 Electric Revenues Generation -- -- -- -- Distribution 144,169 -- -- 144,169 Equity in subsidiary earnings -- -- -- -- -------- -------- ------- -------- Total revenues 165,409 -- -- 165,409 -------- -------- ------- -------- OPERATING EXPENSES: Operation and maintenance 3,686 -- -- 3,686 Depreciation and amortization 8,723 -- 161 8,562 Electric and Energy Costs 85,902 -- -- 85,902 Administrative and general 13,226 -- 514 12,712 -------- -------- ------- -------- Total operating expenses 111,537 -- 675 110,862 -------- -------- ------- -------- Interest and dividend income -- -- -- -- Income from partnerships (19,543) (48,921) 29,378 -- -------- -------- ------- -------- Total Income from equity method investments (19,543) (48,921) 29,378 -- -------- -------- ------- -------- OPERATING INCOME 34,329 (48,921) 28,703 54,547 -------- -------- ------- -------- OTHER INCOME: Other (932) -- -- (932) Change in Derivative Fair Value - FAS 133 (4,073) -- (1,243) (2,830) Foreign currency translation Gain/Loss 5,109 -- -- 5,109 -------- -------- ------- -------- Total Other Income 104 -- (1,243) 1,347 -------- -------- ------- -------- INTEREST EXPENSE: PSEG Capital Corporation -- -- -- -- Enterprise Capital Funding Corp. -- -- -- -- Other Associated Companies -- -- -- -- Other 9,574 (25,420) 7,836 27,158 Capitalized interest (380) -- -- (380) -------- -------- ------- -------- Net interest expense 9,194 (25,420) 7,836 26,778 -------- -------- ------- -------- INCOME BEFORE INCOME TAXES 25,239 (23,501) 19,624 29,116 -------- -------- ------- -------- INCOME TAXES: Current -- -- -- -- Deferred (510) -- (435) (75) Foreign Taxes 5,361 -- -- 5,361 Investment and energy tax credits - net -- -- -- -- -------- -------- ------- -------- Total income taxes 4,851 -- (435) 5,286 -------- -------- ------- -------- MINORITY INTERESTS 329 (140) -- 469 -------- -------- ------- -------- INCOME FROM CONTINUING OPERATIONS 20,059 (23,361) 20,059 23,361 -------- -------- ------- -------- DISCONTINUED OPERATIONS Income from Discontinued Operations - Net of Taxes -- -- -- -- Gain on Sale of Discontinued Operations - Net of Taxes -- -- -- -- -------- -------- ------- -------- INCOME FROM DISCONTINUED OPERATIONS -- -- -- -- -------- -------- ------- -------- NET INCOME $ 20,059 $(23,361) $20,059 $ 23,361 ======== ======== ======= ======== INVERSIONES PSEG AMERICAS CHILE HOLDING LIMITADA CONSOLIDATING STATEMENT OF RETAINED EARNINGS FOR THE YEAR ENDED DECEMBER 31, 2003 (THOUSANDS) INVERSIONES PSEG AMERICAS EMPRESA SOCIEDAD CHILE HOLDING INTERCOMPANY ELECTRICA DE LA AUSTRAL DE LIMITADA ELIMINATIONS FRONTERA S.A. ELECTRICIDAD S.A. CONSOL. & RECLASS. (Frontel) (Saesa) ------------- ------------ --------------- ----------------- BALANCE JANUARY 1, 2003 $16,540 $(17,448) $16,540 $17,448 NET INCOME 20,059 (23,361) 20,059 23,361 ------- -------- ------- ------- TOTAL 36,599 (40,809) 36,599 40,809 ------- -------- ------- ------- DIVIDENDS DECLARED -- -- -- -- ------- -------- ------- ------- BALANCE DECEMBER 31, 2003 $36,599 $(40,809) $36,599 $40,809 ======= ======== ======= ======= INVERSIONES PSEG AMERICAS CHILE HOLDING LIMITADA CONSOLIDATING BALANCE SHEET FOR THE YEAR ENDED DECEMBER 31, 2003 (THOUSANDS) INVERSIONES PSEG AMERICAS EMPRESA SOCIEDAD CHILE HOLDING INTERCOMPANY ELECTRICA DE LA AUSTRAL DE LIMITADA ELIMINATIONS FRONTERA S.A. ELECTRICIDAD S.A. CONSOL. & RECLASS. (Frontel) (Saesa) ------------- ------------ --------------- ----------------- ASSETS CURRENT ASSETS Cash and temporary cash investments $ 14,516 $ -- $ -- $ 14,516 Accounts and Notes receivable: Trade 40,317 -- 1 40,316 Other 14,768 -- -- 14,768 PSE&G -- -- -- -- PSEG -- -- -- -- PSEG Energy Holdings -- -- -- -- Other associated companies 179,603 (2,386) 181,989 -- Notes receivable: Associated companies -- -- -- -- Other -- -- -- -- Interest receivable -- -- -- -- Fuel -- -- -- -- Materials 8,467 -- -- 8,467 Prepayments 733 -- -- 733 --------- --------- -------- --------- Total Current Assets 258,404 (2,386) 181,990 78,800 --------- --------- -------- --------- PROPERTY, PLANT AND EQUIPMENT Real estate 11,416 -- -- 11,416 Generation & Distribution Assets 415,511 -- -- 415,511 CWIP 12,914 -- -- 12,914 Other -- -- -- -- Accum. depr. and amortization (109,366) -- -- (109,366) Valuation allowances -- -- -- -- --------- --------- -------- --------- Property, Plant and Equipment-net 330,475 -- -- 330,475 --------- --------- -------- --------- INVESTMENTS Subsidiaries -- -- -- -- Capital lease agreements -- -- -- -- Partnership interests -- -- -- -- Corporate joint ventures (97,545) (551,691) 454,146 -- Securities -- -- -- -- Valuation allowances -- -- -- -- --------- --------- -------- --------- Total Investments (97,545) (551,691) 454,146 -- --------- --------- -------- --------- OTHER ASSETS Long Term Receivable 1,995 -- -- 1,995 Goodwill 349,274 -- -- 349,274 Deferred tax asset 30,958 -- -- 30,958 Derivative Asset (316) -- (316) -- Deferred Finance Costs 5,448 -- 497 4,951 Project Start up Costs (329) (2,497) 2,168 -- Other 2,182 -- -- 2,182 --------- --------- -------- --------- Total Other Assets 389,212 (2,497) 2,349 389,360 --------- --------- -------- --------- TOTAL ASSETS $ 880,546 $(556,574) $638,485 $ 798,635 ========= ========= ======== ========= INVERSIONES PSEG AMERICAS CHILE HOLDING LIMITADA CONSOLIDATING BALANCE SHEET FOR THE YEAR ENDED DECEMBER 31, 2003 (THOUSANDS) INVERSIONES PSEG AMERICAS EMPRESA SOCIEDAD CHILE HOLDING INTERCOMPANY ELECTRICA DE LA AUSTRAL DE LIMITADA ELIMINATIONS FRONTERA S.A. ELECTRICIDAD S.A. CONSOL. & RECLASS. (Frontel) (Saesa) ------------- ------------ --------------- ----------------- CURRENT LIABILITIES Accounts payable: Trade $ 17,474 $ -- $ -- $ 17,474 Taxes -- -- -- -- Other 16,309 -- -- 16,309 Interest 1,437 (25,703) -- 27,140 Associated companies 36,054 -- 36,054 -- Notes payable: PSEG Capital Corporation -- -- -- -- Enterprise Capital Funding Corp. -- -- -- -- Enterprise Group Development Corp. -- -- -- -- Enterprise Diversified Holdings Inc. -- -- -- -- U.S.Energy Incorporated -- -- -- -- Other -- -- -- -- Current portion of long-term debt 21,335 -- -- 21,335 -------- --------- -------- -------- Total Current Liabilities 92,609 (25,703) 36,054 82,258 -------- --------- -------- -------- TOTAL LONG-TERM DEBT 145,371 (150,000) -- 295,371 -------- --------- -------- -------- DEFERRED CREDITS Deferred income taxes 25,844 -- (2,319) 28,163 Deferred investment and energy tax credits -- -- -- -- Derivative Liability 1,107 -- 121 986 Other 4,117 -- -- 4,117 -------- --------- -------- -------- Total Deferred Credits 31,068 -- (2,198) 33,266 -------- --------- -------- -------- MINORITY INTEREST 6,869 -- -- 6,869 -------- --------- -------- -------- STOCKHOLDER'S EQUITY Capital stock -- (284,935) -- 284,935 Stock Subs Payable -- -- -- -- Contributed capital 510,783 -- 510,783 -- Retained earnings 36,599 (40,809) 36,599 40,809 Other Comprehensive income 278 (278) 278 278 Cumulative Translation Adjustment 56,969 (54,849) 56,969 54,849 -------- --------- -------- -------- Total Stockholder's Equity 604,629 (380,871) 604,629 380,871 -------- --------- -------- -------- TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY $880,546 $(556,574) $638,485 $798,635 ======== ========= ======== ======== PSEG EUROPE (Delaware) LLC CONSOLIDATING STATEMENT OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 2003 (THOUSANDS) PSEG EUROPE PSEG PSEG (Delaware) INTERCOMPANY EUROPE EUROPE LLC ELIMINATIONS (Delaware) B.V. CONSOL. & RECLASS. LLC CONSOL. ---------- ------------ ---------- -------- REVENUES: Income from capital lease agreements $ -- $ -- $ -- $ -- Unrealized gains (losses) on investments -- -- -- -- Realized gains (losses) on investments -- -- -- -- Other 791 -- -- 791 Electric Revenues Generation 126,749 -- -- 126,749 Distribution -- -- -- -- Equity in subsidiary earnings -- (9,286) 9,286 -- -------- ------- ------ -------- Total revenues 127,540 (9,286) 9,286 127,540 -------- ------- ------ -------- OPERATING EXPENSES: Operation and maintenance 27,901 -- -- 27,901 Write-down of project investments 326 -- -- 326 Depreciation and amortization 5,545 -- -- 5,545 Electric and Energy Costs 52,272 -- -- 52,272 Administrative and general 24,939 -- (449) 25,388 -------- ------- ------ -------- Total operating expenses 110,983 -- (449) 111,432 -------- ------- ------ -------- Income from partnerships (5,906) -- -- (5,906) Interest and dividend income 3,320 -- -- 3,320 Consulting and O&M fees 181 -- -- 181 -------- ------- ------ -------- Total Income from equity method investments (2,405) -- -- (2,405) -------- ------- ------ -------- OPERATING INCOME 14,152 (9,286) 9,735 13,703 -------- ------- ------ -------- OTHER INCOME: Gain on sale - other 1,002 -- -- 1,002 Change in Derivative Fair Value - FAS 133 842 -- -- 842 Foreign currency translation Gain/Loss 7,695 -- -- 7,695 -------- ------- ------ -------- Total Other Income 9,539 -- -- 9,539 -------- ------- ------ -------- INTEREST EXPENSE: PSEG Capital Corporation -- -- -- -- Enterprise Capital Funding Corp. -- -- -- -- Other Associated Companies 525 -- -- 525 Other 4,679 -- -- 4,679 Capitalized interest -- -- -- -- -------- ------- ------ -------- Net interest expense 5,204 -- -- 5,204 -------- ------- ------ -------- INCOME BEFORE INCOME TAXES 18,487 (9,286) 9,735 18,038 -------- ------- ------ -------- INCOME TAXES: Current 2,274 -- 157 2,117 Deferred 295 -- -- 295 Investment and energy tax credits - net -- -- -- -- Foreign taxes 1,389 -- -- 1,389 -------- ------- ------ -------- Total income taxes 3,958 -- 157 3,801 -------- ------- ------ -------- MINORITY INTERESTS 4,951 -- -- 4,951 -------- ------- ------ -------- INCOME FROM CONTINUING OPERATIONS 9,578 (9,286) 9,578 9,286 -------- ------- ------ -------- DISCONTINUED OPERATIONS Income from Discontinued Operations - Net of Taxes -- -- -- -- Gain on Sale of Discontinued Operations - Net of Taxes -- -- -- -- -------- ------- ------ -------- INCOME FROM DISCONTINUED OPERATIONS -- -- -- -- -------- ------- ------ -------- NET INCOME $ 9,578 $(9,286) $9,578 $ 9,286 ======== ======= ====== ======== PSEG Europe (Delaware) LLC CONSOLIDATING STATEMENT OF RETAINED EARNINGS FOR THE YEAR ENDED DECEMBER 31, 2003 (THOUSANDS) PSEG EUROPE PSEG PSEG (Delaware) INTERCOMPANY EUROPE EUROPE LLC ELIMINATIONS (Delaware) B.V. CONSOL. & RECLASS. LLC CONSOL. ---------- ------------ ---------- -------- BALANCE JANUARY 1, 2003 $(11,060) $10,194 $(11,060) (10,194) NET INCOME 9,578 (9,286) 9,578 9,286 -------- ------- -------- -------- TOTAL (1,482) 908 (1,482) (908) -------- ------- -------- -------- DIVIDENDS DECLARED -- -- -- -- -------- ------- -------- -------- -------- ------- -------- -------- BALANCE DECEMBER 31, 2003 $ (1,482) $ 908 $ (1,482) $ (908) ======== ======= ======== ======== PSEG Europe (Delaware) LLC CONSOLIDATING BALANCE SHEET FOR THE YEAR ENDED DECEMBER 31, 2003 (THOUSANDS) PSEG EUROPE PSEG PSEG (Delaware) INTERCOMPANY EUROPE EUROPE LLC ELIMINATIONS (Delaware) B.V. CONSOL. & RECLASS. LLC CONSOL. ---------- ------------ ---------- --------- ASSETS CURRENT ASSETS Cash and temporary cash investments $ 11,369 $ -- $ -- $ 11,369 Accounts and Notes receivable: Trade 25,054 -- -- 25,054 Other 911 -- -- 911 PSE&G -- -- -- -- PSEG -- -- -- -- Other associated companies 251,618 -- 79,747 171,871 Notes receivable: Associated companies -- -- -- -- Other -- -- -- -- Interest receivable -- -- -- -- Assets Held for Sale -- -- -- -- Prepayments 1,436 -- -- 1,436 Inventory - fuel 9,135 -- -- 9,135 Inventory-Materials 4,322 -- -- 4,322 -------- ------- -------- -------- Total Current Assets 303,845 -- 79,747 224,098 -------- ------- -------- -------- PROPERTY, PLANT AND EQUIPMENT Real estate 3,075 -- -- 3,075 Generation & Distribution Assets 363,065 -- -- 363,065 Other 1 -- -- 1 Construction Work in process 10,007 -- -- 10,007 Accum. depr. and amortization (8,663) -- -- (8,663) Valuation allowances -- -- -- -- -------- ------- -------- -------- Property, Plant and Equipment-net 367,485 -- -- 367,485 -------- ------- -------- -------- INVESTMENTS Subsidiaries -- 13,716 (13,716) -- Capital lease agreements -- -- -- -- Partnership interests -- -- -- -- Corporate joint ventures 74,666 -- -- 74,666 Securities -- -- -- -- Valuation allowances -- -- -- -- -------- ------- -------- -------- Total Investments 74,666 13,716 (13,716) 74,666 -------- ------- -------- -------- OTHER ASSETS Goodwill 8,152 -- -- 8,152 Deferred Tax Asset 663 -- -- 663 Deferred Finance Costs 7,015 -- -- 7,015 Project Start up Costs 4,357 -- -- 4,357 Intangibles 368 -- -- 368 Other -- -- -- -- -------- ------- -------- -------- Total Other Assets 20,555 -- -- 20,555 -------- ------- -------- -------- TOTAL ASSETS $766,551 $13,716 $ 66,031 $686,804 ======== ======= ======== ======== PSEG Europe (Delaware) LLC CONSOLIDATING BALANCE SHEET FOR THE YEAR ENDED DECEMBER 31, 2003 (THOUSANDS) PSEG EUROPE PSEG PSEG (Delaware) INTERCOMPANY EUROPE EUROPE LLC ELIMINATIONS (Delaware) B.V. CONSOL. & RECLASS. LLC CONSOL. ---------- ------------ ---------- -------- LIABILITIES AND STOCKHOLDER'S EQUITY CURRENT LIABILITIES Accounts payable: Trade $ 13,895 $ -- $ 4 $ 13,891 Taxes -- -- -- -- Other 9,654 -- -- 9,654 Interest 1,717 -- -- 1,717 Associated companies 337,253 -- 25,377 311,876 Notes payable: PSEG Capital Corporation -- -- -- -- Enterprise Capital Funding Corp. -- -- -- -- Enterprise Group Development Corp. -- -- -- -- Enterprise Diversified Holdings Inc. -- -- -- -- Other Assoc companies -- -- -- -- Other 1,996 -- -- 1,996 Current portion of long-term debt 3,727 -- -- 3,727 -------- -------- -------- -------- Total Current Liabilities 368,242 -- 25,381 342,861 -------- -------- -------- -------- TOTAL LONG-TERM DEBT 284,083 -- -- 284,083 -------- -------- -------- -------- DEFERRED CREDITS Deferred income taxes (32,016) -- (212) (31,804) Deferred investment and energy tax credits -- -- -- -- Derivative Liability 82,129 -- -- 82,129 Deferred Revenue (9) -- -- (9) Other 7,628 -- -- 7,628 -------- -------- -------- -------- Total Deferred Credits 57,732 -- (212) 57,944 -------- -------- -------- -------- MINORITY INTEREST 15,632 -- -- 15,632 -------- -------- -------- -------- STOCKHOLDER'S EQUITY Capital stock -- -- -- -- Stock Subs Payable -- -- -- -- Contributed capital 98,838 (43,686) 98,838 43,686 Retained earnings (1,482) 908 (1,482) (908) Other Comprehensive Income (56,767) 56,767 (56,767) (56,767) Cumulative Translation Adjustment 273 (273) 273 273 -------- -------- -------- -------- Total Stockholder's Equity 40,862 13,716 40,862 (13,716) -------- -------- -------- -------- TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY $766,551 $ 13,716 $ 66,031 $686,804 ======== ======== ======== ======== PSEG EUROPE B.V CONSOLIDATING STATEMENT OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 2003 (THOUSANDS) PSEG EUROPE INTERCOMPANY B.V. ELIMINATIONS CONSOL. & RECLASS. -------- ------------ REVENUES: Income from capital lease agreements $ -- $ -- Unrealized gains (losses) on investments -- -- Realized gains (losses) on investments -- -- Other 791 -- Electric Revenues Generation 126,749 -- Distribution -- -- Equity in subsidiary earnings -- (10,503) -------- -------- Total revenues 127,540 (10,503) -------- -------- OPERATING EXPENSES: Operation and maintenance 27,901 -- Write-down of project investments 326 -- Depreciation and amortization 5,545 -- Electric and Energy Costs 52,272 -- Administrative and general 25,388 -- -------- -------- Total operating expenses 111,432 -- -------- -------- Income from partnerships (5,906) -- Interest and dividend income 3,320 -- Consulting and O&M fees 181 -- -------- -------- Total Income from equity method investments (2,405) -- -------- -------- OPERATING INCOME 13,703 (10,503) -------- -------- OTHER INCOME: Gain on sale - other 1,002 -- Change in Derivative Fair Value - FAS 133 842 -- Foreign currency translation Gain/Loss 7,695 -- -------- -------- Total Other Income 9,539 -- -------- -------- INTEREST EXPENSE: PSEG Capital Corporation -- -- Enterprise Capital Funding Corp. -- -- Other Associated Companies 525 -- Other 4,679 -- Capitalized interest -- -- -------- -------- Net interest expense 5,204 -- -------- -------- INCOME BEFORE INCOME TAXES 18,038 (10,503) -------- -------- INCOME TAXES: Current 2,117 -- Deferred 295 -- Investment and energy tax credits - net -- -- Foreign taxes 1,389 -- -------- -------- Total income taxes 3,801 -- -------- -------- MINORITY INTERESTS 4,951 -- -------- -------- INCOME FROM CONTINUING OPERATIONS 9,286 (10,503) -------- -------- DISCONTINUED OPERATIONS Income from Discontinued Operations - Net of Taxes -- -- Gain on Sale of Discontinued Operations - Net of Taxes -- -- -------- -------- INCOME FROM DISCONTINUED OPERATIONS -- -- -------- -------- NET INCOME $ 9,286 $(10,503) ======== ======== PSEG PSEG EUROPE PSEG EUROPE PSEG EUROPE EUROPE I.B.V II.B.V III .B.V B.V. (Netherlands) (Netherlands) (Netherlands) ------- -------------- ------------- ------------- REVENUES: Income from capital lease agreements $ -- $-- $-- $-- Unrealized gains (losses) on investments -- -- -- -- Realized gains (losses) on investments -- -- -- -- Other -- -- -- -- Electric Revenues Generation -- -- -- -- Distribution -- -- -- -- Equity in subsidiary earnings 10,503 -- -- -- ------- --- --- --- Total revenues 10,503 -- -- -- ------- --- --- --- OPERATING EXPENSES: Operation and maintenance -- -- -- -- Write-down of project investments -- -- -- -- Depreciation and amortization -- -- -- -- Electric and Energy Costs -- -- -- -- Administrative and general 275 -- -- -- ------- --- --- --- Total operating expenses 275 -- -- -- ------- --- --- --- Income from partnerships -- -- -- -- Interest and dividend income 30 -- -- -- Consulting and O&M fees 172 -- -- -- ------- --- --- --- Total Income from equity method investments 202 -- -- -- ------- --- --- --- OPERATING INCOME 10,430 -- -- -- ------- --- --- --- OTHER INCOME: Gain on sale - other -- -- -- -- Change in Derivative Fair Value - FAS 133 -- -- -- -- Foreign currency translation Gain/Loss 9 -- -- -- ------- --- --- --- Total Other Income 9 -- -- -- ------- --- --- --- INTEREST EXPENSE: PSEG Capital Corporation -- -- -- -- Enterprise Capital Funding Corp. -- -- -- -- Other Associated Companies -- -- -- -- Other (3) -- -- -- Capitalized interest -- -- -- -- ------- --- --- --- Net interest expense (3) -- -- -- ------- --- --- --- INCOME BEFORE INCOME TAXES 10,442 -- -- -- ------- --- --- --- INCOME TAXES: Current 1,156 -- -- -- Deferred -- -- -- -- Investment and energy tax credits - net -- -- -- -- Foreign taxes -- -- -- -- ------- --- --- --- Total income taxes 1,156 -- -- -- ------- --- --- --- MINORITY INTERESTS -- -- -- -- ------- --- --- --- INCOME FROM CONTINUING OPERATIONS 9,286 -- -- -- ------- --- --- --- DISCONTINUED OPERATIONS Income from Discontinued Operations - Net of Taxes -- -- -- -- Gain on Sale of Discontinued Operations - Net of Taxes -- -- -- -- ------- --- --- --- INCOME FROM DISCONTINUED OPERATIONS -- -- -- -- ------- --- --- --- NET INCOME $ 9,286 $-- $-- $-- ======= === === === PSEG EUROPE B.V. CONSOLIDATING STATEMENT OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 2003 (THOUSANDS) PSEG PSEG EUROPE PSEG PSEG EUROPE PSEG POLAND DIST IV .B.V POLAND V.B.V ITALIA B.V. (Netherlands) B.V. (Netherlands) B.V. CONSOL. ------------- ------ ------------- ------- ----------- REVENUES: Income from capital lease agreements $-- $-- $-- $ -- $ -- Unrealized gains (losses) on investments -- -- -- -- -- Realized gains (losses) on investments -- -- -- -- -- Other -- -- -- -- 612 Electric Revenues Generation -- -- -- -- 94,887 Distribution -- -- -- -- -- Equity in subsidiary earnings -- -- -- -- -- --- --- --- ------- ------- Total revenues -- -- -- -- 95,499 --- --- --- ------- ------- OPERATING EXPENSES: Operation and maintenance -- -- -- -- 21,511 Write-down of project investments -- -- -- 326 -- Depreciation and amortization -- -- -- -- 3,104 Electric and Energy Costs -- -- -- -- 43,224 Administrative and general -- -- 3 66 18,774 --- --- --- ------- ------- Total operating expenses -- -- 3 392 86,613 --- --- --- ------- ------- Income from partnerships -- -- -- (5,905) -- Interest and dividend income -- -- -- 3,290 -- Consulting and O&M fees -- -- -- -- -- --- --- --- ------- ------- Total Income from equity method investments -- -- -- (2,615) -- --- --- --- ------- ------- OPERATING INCOME -- -- (3) (3,007) 8,886 --- --- --- ------- ------- OTHER INCOME: Gain on sale - other -- -- -- -- 1,002 Change in Derivative Fair Value - FAS 133 -- -- -- -- -- Foreign currency translation Gain/Loss -- -- -- 9,869 1 --- --- --- ------- ------- Total Other Income -- -- -- 9,869 1,003 --- --- --- ------- ------- INTEREST EXPENSE: PSEG Capital Corporation -- -- -- -- -- Enterprise Capital Funding Corp. -- -- -- -- -- Other Associated Companies -- -- -- -- -- Other -- -- -- -- (53) Capitalized interest -- -- -- -- -- --- --- --- ------- ------- Net interest expense -- -- -- -- (53) --- --- --- ------- ------- INCOME BEFORE INCOME TAXES -- -- (3) 6,862 9,942 --- --- --- ------- ------- INCOME TAXES: Current -- -- -- 1,014 (51) Deferred -- -- -- -- Investment and energy tax credits - net -- -- -- -- -- Foreign taxes -- -- -- -- 805 --- --- --- ------- ------- Total income taxes -- -- -- 1,014 754 --- --- --- ------- ------- MINORITY INTERESTS -- -- -- -- 3,514 --- --- --- ------- ------- INCOME FROM CONTINUING OPERATIONS -- -- (3) 5,848 5,674 --- --- --- ------- ------- DISCONTINUED OPERATIONS Income from Discontinued Operations - Net of Taxes -- -- -- -- -- Gain on Sale of Discontinued Operations - Net of Taxes -- -- -- -- -- --- --- --- ------- ------- INCOME FROM DISCONTINUED OPERATIONS -- -- -- -- -- --- --- --- ------- ------- NET INCOME $-- $-- $(3) $ 5,848 $ 5,674 === === === ======= ======= PSEG PSEG PSEG PSEG INVESTMENTS SILESIA SPAIN TURKEY B.V. B.V. B.V. B.V. CONSOL CONSOL. CONSOL. ------ ----------- -------- ------- REVENUES: Income from capital lease agreements $-- $ -- $ -- $-- Unrealized gains (losses) on investments -- -- -- -- Realized gains (losses) on investments -- -- -- -- Other -- -- 179 -- Electric Revenues Generation -- -- 31,862 -- Distribution -- -- -- -- Equity in subsidiary earnings -- -- -- -- --- ---- ------- --- Total revenues -- -- 32,041 -- --- ---- ------- --- OPERATING EXPENSES: Operation and maintenance -- -- 6,390 -- Write-down of project investments -- -- -- -- Depreciation and amortization -- -- 2,441 -- Electric and Energy Costs -- -- 9,048 -- Administrative and general 3 22 6,245 -- --- ---- ------- --- Total operating expenses 3 22 24,124 -- --- ---- ------- --- Income from partnerships -- -- (1) -- Interest and dividend income -- -- -- -- Consulting and O&M fees -- -- 9 -- --- ---- ------- --- Total Income from equity method investments -- -- 8 -- --- ---- ------- --- OPERATING INCOME (3) (22) 7,925 -- --- ---- ------- --- OTHER INCOME: Gain on sale - other -- -- -- -- Change in Derivative Fair Value - FAS 133 -- -- 842 -- Foreign currency translation Gain/Loss -- -- (2,184) -- --- ---- ------- --- Total Other Income -- -- (1,342) -- --- ---- ------- --- INTEREST EXPENSE: PSEG Capital Corporation -- -- -- -- Enterprise Capital Funding Corp. -- -- -- -- Other Associated Companies -- -- 525 -- Other -- -- 4,735 -- Capitalized interest -- -- -- -- --- ---- ------- --- Net interest expense -- -- 5,260 -- --- ---- ------- --- INCOME BEFORE INCOME TAXES (3) (22) 1,323 -- --- ---- ------- --- INCOME TAXES: Current (1) (1) -- -- Deferred -- -- 295 -- Investment and energy tax credits - net -- -- -- -- Foreign taxes -- -- 584 -- --- ---- ------- --- Total income taxes (1) (1) 879 -- --- ---- ------- --- MINORITY INTERESTS -- -- 1,437 -- --- ---- ------- --- INCOME FROM CONTINUING OPERATIONS (2) (21) (993) -- --- ---- ------- --- DISCONTINUED OPERATIONS Income from Discontinued Operations - Net of Taxes -- -- -- -- Gain on Sale of Discontinued Operations - Net of Taxes -- -- -- -- --- ---- ------- --- INCOME FROM DISCONTINUED OPERATIONS -- -- -- -- --- ---- ------- --- NET INCOME $(2) $(21) $ (993) $-- === ==== ======= === PSEG Europe B.V. CONSOLIDATING STATEMENT OF RETAINED EARNINGS FOR THE YEAR ENDED DECEMBER 31, 2003 (THOUSANDS) PSEG EUROPE INTERCOMPANY B.V. ELIMINATIONS CONSOL. & RECLASS. -------- ------------ BALANCE JANUARY 1, 2003 (10,194) $ 11,227 NET INCOME 9,286 (10,503) -------- -------- TOTAL (908) 724 -------- -------- DIVIDENDS DECLARED -- -- -------- -------- -------- -------- BALANCE DECEMBER 31, 2003 $ (908) $ 724 ======== ======== PSEG PSEG EUROPE PSEG EUROPE PSEG EUROPE EUROPE I .B.V II .B.V III .B.V B.V. (Netherlands) (Netherlands) (Netherlands) -------- ------------- ------------- ------------- BALANCE JANUARY 1, 2003 $(10,194) $-- $-- $-- NET INCOME 9,286 -- -- -- -------- --- --- --- TOTAL (908) -- -- -- -------- --- --- --- DIVIDENDS DECLARED -- -- -- -- -------- --- --- --- -------- --- --- --- BALANCE DECEMBER 31, 2003 $ (908) $-- $-- $-- ======== === === === PSEG Europe B.V. CONSOLIDATING STATEMENT OF RETAINED EARNINGS FOR THE YEAR ENDED DECEMBER 31, 2003 (THOUSANDS) PSEG PSEG EUROPE PSEG PSEG EUROPE PSEG POLAND DIST IV .B.V POLAND V.B.V ITALIA B.V. (Netherlands) B.V. (Netherlands) B.V. CONSOL. ------------- ------ ------------- ------- ----------- BALANCE JANUARY 1, 2003 $-- $ -- $ (7) $(7,594) $3,181 NET INCOME -- -- (3) 5,848 5,674 --- ------ ---- ------- ------ TOTAL -- -- (10) (1,746) 8,855 --- ------ ---- ------- ------ DIVIDENDS DECLARED -- -- -- -- -- --- ------ ---- ------- ------ --- ------ ---- ------- ------ BALANCE DECEMBER 31, 2003 $-- $ -- $(10) $(1,746) $8,855 === ====== ==== ======= ====== PSEG PSEG PSEG PSEG INVESTMENTS SILESIA SPAIN TURKEY B.V. B.V. B.V. B.V. CONSOL CONSOL. CONSOL. ------ ----------- ------- ------- BALANCE JANUARY 1, 2003 $541 $(4,631) $(2,717) $-- NET INCOME (2) (21) (993) $-- ---- ------- ------- --- TOTAL 539 (4,652) (3,710) -- ---- ------- ------- --- DIVIDENDS DECLARED -- -- -- -- ---- ------- ------- --- ---- ------- ------- --- BALANCE DECEMBER 31, 2003 $539 $(4,652) $(3,710) $-- ==== ======= ======= === PSEG Europe B.V. CONSOLIDATING BALANCE SHEET FOR THE YEAR ENDED DECEMBER 31, 2003 (THOUSANDS) PSEG EUROPE INTERCOMPANY B.V. ELIMINATIONS CONSOL. & RECLASS. --------- ------------ ASSETS CURRENT ASSETS Cash and temporary cash investments $ 11,369 $ -- Accounts and Notes receivable: Trade 25,054 -- Other 911 -- PSE&G -- -- PSEG -- -- Other associated companies 171,871 -- Notes receivable: Associated companies -- -- Other -- -- Interest receivable -- -- Assets Held for Sale -- -- Prepayments 1,436 -- Inventory - fuel 9,135 -- Inventory-Materials 4,322 -- -------- ------- Total Current Assets 224,098 -- -------- ------- PROPERTY, PLANT AND EQUIPMENT Real estate 3,075 -- Generation & Distribution Assets 363,065 -- Other 1 -- Construction Work in process 10,007 -- Accum. depr. and amortization (8,663) -- Valuation allowances -- -- -------- ------- Property, Plant and Equipment-net 367,485 -- -------- ------- INVESTMENTS Subsidiaries -- 30,083 Capital lease agreements -- -- Partnership interests -- -- Corporate joint ventures 74,666 -- Securities -- -- Valuation allowances -- -- -------- ------- Total Investments 74,666 30,083 -------- ------- OTHER ASSETS Goodwill 8,152 -- Deferred Tax Asset 663 -- Deferred Finance Costs 7,015 -- Project Start up Costs 4,357 -- Intangibles 368 -- Other -- -- -------- ------- Total Other Assets 20,555 -- -------- ------- TOTAL ASSETS $686,804 $30,083 ======== ======= PSEG PSEG EUROPE PSEG EUROPE PSEG EUROPE EUROPE I.B.V II.B.V III.B.V B.V. (Netherlands) (Netherlands) (Netherlands) --------- ------------- ------------- ------------- ASSETS CURRENT ASSETS Cash and temporary cash investments $ 755 $-- $-- $-- Accounts and Notes receivable: Trade 16 -- -- -- Other (20) -- -- -- PSE&G -- -- -- -- PSEG -- -- -- -- Other associated companies 137,871 -- -- -- Notes receivable: Associated companies -- -- -- -- Other -- -- -- -- Interest receivable -- -- -- -- Assets Held for Sale -- -- -- -- Prepayments -- -- -- -- Inventory - fuel -- -- -- -- Inventory-Materials -- -- -- -- -------- --- --- --- Total Current Assets 138,622 -- -- -- -------- --- --- --- PROPERTY, PLANT AND EQUIPMENT Real estate -- -- -- -- Generation & Distribution Assets -- -- -- -- Other -- -- -- -- Construction Work in process -- -- -- -- Accum. depr. and amortization -- -- -- -- Valuation allowances -- -- -- -- -------- --- --- --- Property, Plant and Equipment-net -- -- -- -- -------- --- --- --- INVESTMENTS Subsidiaries (30,083) -- -- -- Capital lease agreements -- -- -- -- Partnership interests -- -- -- -- Corporate joint ventures (475) -- -- -- Securities -- -- -- -- Valuation allowances -- -- -- -- -------- --- --- --- Total Investments (30,558) -- -- -- -------- --- --- --- OTHER ASSETS Goodwill -- -- -- -- Deferred Tax Asset -- -- -- -- Deferred Finance Costs -- -- -- -- Project Start up Costs 384 -- -- -- Intangibles -- -- -- -- Other -- -- -- -- -------- --- --- --- Total Other Assets 384 -- -- -- -------- --- --- --- TOTAL ASSETS $108,448 $-- $-- $-- ======== === === === PSEG Europe B.V. CONSOLIDATING BALANCE SHEET FOR THE YEAR ENDED DECEMBER 31, 2003 (THOUSANDS) PSEG PSEG EUROPE PSEG PSEG EUROPE PSEG POLAND DIST IV .B.V POLAND V.B.V ITALIA B.V. (Netherlands) B.V. (Netherlands) B.V. CONSOL. ------------- ------ ------------- ------- ----------- ASSETS CURRENT ASSETS Cash and temporary cash investments $-- $-- $-- $ -- $ 1,514 Accounts and Notes receivable: Trade -- -- 1 1 10,714 Other -- -- -- 20 1,109 PSE&G -- -- -- -- -- PSEG -- -- -- -- -- Other associated companies -- -- 15 22,618 300 Notes receivable: Associated companies -- -- -- -- -- Other -- -- -- -- -- Interest receivable -- -- -- -- -- Assets Held for Sale -- -- -- -- -- Prepayments -- -- -- -- 99 Inventory - fuel -- -- -- -- 5,905 Inventory-Materials -- -- -- -- 2,008 --- --- --- ------- ------- Total Current Assets -- -- 16 22,639 21,649 --- --- --- ------- ------- PROPERTY, PLANT AND EQUIPMENT Real estate -- -- -- -- 107 Generation & Distribution Assets -- -- -- -- 64,951 Other -- -- -- -- 1 Construction Work in process -- -- -- -- 10,007 Accum. depr. and amortization -- -- -- -- (4,156) Valuation allowances -- -- -- -- -- --- --- --- ------- ------- Property, Plant and Equipment-net -- -- -- -- 70,910 --- --- --- ------- ------- INVESTMENTS Subsidiaries -- -- -- -- -- Capital lease agreements -- -- -- -- -- Partnership interests -- -- -- -- -- Corporate joint ventures -- -- -- 75,903 (2,826) Securities -- -- -- -- -- Valuation allowances -- -- -- -- -- --- --- --- ------- ------- Total Investments -- -- -- 75,903 (2,826) --- --- --- ------- ------- OTHER ASSETS Goodwill -- -- -- -- -- Deferred Tax Asset -- -- -- -- 663 Deferred Finance Costs -- -- -- -- -- Project Start up Costs -- -- -- -- 1,396 Intangibles -- -- -- -- 9 Other -- -- -- -- -- --- --- --- ------- ------- Total Other Assets -- -- -- -- 2,068 --- --- --- ------- ------- TOTAL ASSETS $-- $-- $16 $98,542 $91,801 === === === ======= ======= PSEG PSEG PSEG PSEG INVESTMENTS SILESIA SPAIN TURKEY B.V. B.V. B.V. B.V. CONSOL CONSOL. CONSOL. ------ ----------- --------- ------- ASSETS CURRENT ASSETS Cash and temporary cash investments $ 2 $ 24 $ 9,074 $-- Accounts and Notes receivable: Trade -- (14) 14,336 -- Other -- -- (198) -- PSE&G -- -- -- -- PSEG -- -- -- -- Other associated companies 3,213 2,823 5,031 -- Notes receivable: Associated companies -- -- -- -- Other -- -- -- -- Interest receivable -- -- -- -- Assets Held for Sale -- -- -- -- Prepayments -- -- 1,337 -- Inventory - fuel -- -- 3,230 -- Inventory-Materials -- -- 2,314 -- ------ ------ -------- --- Total Current Assets 3,215 2,833 35,124 -- ------ ------ -------- --- PROPERTY, PLANT AND EQUIPMENT Real estate -- -- 2,968 -- Generation & Distribution Assets -- -- 298,114 -- Other -- -- -- -- Construction Work in process -- -- -- -- Accum. depr. and amortization -- -- (4,507) -- Valuation allowances -- -- -- -- ------ ------ -------- --- Property, Plant and Equipment-net -- -- 296,575 -- ------ ------ -------- --- INVESTMENTS Subsidiaries -- -- -- -- Capital lease agreements -- -- -- -- Partnership interests -- -- -- -- Corporate joint ventures -- -- 2,064 -- Securities -- -- -- -- Valuation allowances -- -- -- -- ------ ------ -------- --- Total Investments -- -- 2,064 -- ------ ------ -------- --- OTHER ASSETS Goodwill -- -- 8,152 -- Deferred Tax Asset -- -- -- -- Deferred Finance Costs -- -- 7,015 -- Project Start up Costs -- -- 2,577 -- Intangibles -- -- 359 -- Other -- -- -- -- ------ ------ -------- --- Total Other Assets -- -- 18,103 -- ------ ------ -------- --- TOTAL ASSETS $3,215 $2,833 $351,866 $-- ====== ====== ======== === PSEG Europe B.V. CONSOLIDATING BALANCE SHEET FOR THE YEAR ENDED DECEMBER 31, 2003 (THOUSANDS) PSEG EUROPE INTERCOMPANY B.V. ELIMINATIONS CONSOL. & RECLASS. -------- ------------ LIABILITIES AND STOCKHOLDER'S EQUITY CURRENT LIABILITIES Accounts payable: Trade $ 13,891 $ -- Taxes -- -- Other 9,654 -- Interest 1,717 -- Associated companies 311,876 -- Notes payable: PSEG Capital Corporation -- -- Enterprise Capital Funding Corp. -- -- Enterprise Group Development Corp. -- -- Enterprise Diversified Holdings Inc. -- -- Other Assoc companies -- -- Other 1,996 -- Current portion of long-term debt 3,727 -- -------- --- Total Current Liabilities 342,861 -- -------- --- TOTAL LONG-TERM DEBT 284,083 -- -------- --- DEFERRED CREDITS Deferred income taxes (31,804) -- Deferred investment and energy tax credits -- -- Derivative Liability 82,129 -- Deferred Revenue (9) -- Other 7,628 -- -------- --- Total Deferred Credits 57,944 -- -------- --- MINORITY INTEREST 15,632 -- -------- --- STOCKHOLDER'S EQUITY Capital stock -- (20) Stock Subs Payable -- -- Contributed capital 43,686 (27,115) Retained earnings (908) 724 Other Comprehensive Income (56,767) 56,767 Cumulative Translation Adjustment 273 (273) -------- -------- Total Stockholder's Equity (13,716) 30,083 -------- -------- TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY $686,804 $ 30,083 ======== ======== PSEG PSEG EUROPE PSEG EUROPE PSEG EUROPE EUROPE I .B.V II .B.V III .B.V B.V. (Netherlands) (Netherlands) (Netherlands) -------- ------------- ------------- ------------- LIABILITIES AND STOCKHOLDER'S EQUITY CURRENT LIABILITIES Accounts payable: Trade $ -- $-- $-- $-- Taxes -- -- -- -- Other 47 -- -- -- Interest -- -- -- -- Associated companies 121,950 -- -- -- Notes payable: PSEG Capital Corporation -- -- -- -- Enterprise Capital Funding Corp. -- -- -- -- Enterprise Group Development Corp. -- -- -- -- Enterprise Diversified Holdings Inc. -- -- -- -- Other Assoc companies -- -- -- -- Other -- -- -- -- Current portion of long-term debt -- -- -- -- -------- --- --- --- Total Current Liabilities 121,997 -- -- -- -------- --- --- --- TOTAL LONG-TERM DEBT -- -- -- -- -------- --- --- --- DEFERRED CREDITS Deferred income taxes 167 -- -- -- Deferred investment and energy tax credits -- -- -- -- Derivative Liability -- -- -- -- Deferred Revenue -- -- -- -- Other -- -- -- -- -------- --- --- --- Total Deferred Credits 167 -- -- -- -------- --- --- --- MINORITY INTEREST -- -- -- -- -------- --- --- --- STOCKHOLDER'S EQUITY Capital stock -- -- -- Stock Subs Payable -- -- -- -- Contributed capital 43,686 -- -- -- Retained earnings (908) -- -- -- Other Comprehensive Income (56,767) -- -- -- Cumulative Translation Adjustment 273 -- -- -- -------- --- --- --- Total Stockholder's Equity (13,716) -- -- -- -------- --- --- --- TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY $108,448 $-- $-- $-- ======== === === === PSEG Europe B.V CONSOLIDATING BALANCE SHEET FOR THE YEAR ENDED DECEMBER 31, 2003 (THOUSANDS) PSEG PSEG EUROPE PSEG PSEG EUROPE PSEG POLAND DIST IV .B.V POLAND V.B.V ITALIA B.V. (Netherlands) B.V. (Netherlands) B.V. CONSOL. ------------- ------- ------------- ------- ----------- LIABILITIES AND STOCKHOLDER'S EQUITY CURRENT LIABILITIES Accounts payable: Trade $-- $-- $ -- $ 7 $ 7,733 Taxes -- -- -- -- -- Other -- -- -- -- 8,547 Interest -- -- -- -- -- Associated companies -- 5 92,541 35,526 Notes payable: PSEG Capital Corporation -- -- -- -- -- Enterprise Capital Funding Corp. -- -- -- -- -- Enterprise Group Development Corp. -- -- -- -- -- Enterprise Diversified Holdings Inc. -- -- -- -- -- Other Assoc companies -- -- -- -- -- Other -- -- -- -- -- Current portion of long-term debt -- -- -- -- 425 --- --- ---- ------- ------- Total Current Liabilities -- -- 5 92,548 52,231 --- --- ---- ------- ------- TOTAL LONG-TERM DEBT -- -- -- -- 2,554 --- --- ---- ------- ------- DEFERRED CREDITS Deferred income taxes -- -- -- (35) 3,167 Deferred investment and energy tax credits -- -- -- -- -- Derivative Liability -- -- -- -- 1,174 Deferred Revenue -- -- -- -- -- Other -- -- -- -- 7,627 --- --- ---- ------- ------- Total Deferred Credits -- -- -- (35) 11,968 --- --- ---- ------- ------- MINORITY INTEREST -- -- -- -- 15,920 --- --- ---- ------- ------- STOCKHOLDER'S EQUITY Capital stock -- -- -- 20 -- Stock Subs Payable -- -- -- -- -- Contributed capital -- -- 21 7,755 -- Retained earnings -- -- (10) (1,746) 8,855 Other Comprehensive Income -- -- -- -- -- Cumulative Translation Adjustment -- -- -- -- 273 --- --- ---- ------- ------- Total Stockholder's Equity -- -- 11 6,029 9,128 --- --- ---- ------- ------- TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY $-- $-- $ 16 $98,542 $91,801 === === ==== ======= ======= PSEG PSEG PSEG PSEG INVESTMENTS SILESIA SPAIN TURKEY B.V. B.V. B.V. B.V. CONSOL CONSOL. CONSOL. ------ ----------- -------- ------- LIABILITIES AND STOCKHOLDER'S EQUITY CURRENT LIABILITIES Accounts payable: Trade $ -- $ -- $ 6,151 $-- Taxes -- -- -- -- Other 1 1 1,058 -- Interest -- -- 1,717 -- Associated companies 2,614 8,035 51,205 -- Notes payable: PSEG Capital Corporation -- -- -- -- Enterprise Capital Funding Corp. -- -- -- -- Enterprise Group Development Corp. -- -- -- -- Enterprise Diversified Holdings Inc. -- -- -- -- Other Assoc companies -- -- -- -- Other -- -- 1,996 -- Current portion of long-term debt -- -- 3,302 -- ------ -------- -------- --- Total Current Liabilities 2,615 8,036 65,429 -- ------ -------- -------- --- TOTAL LONG-TERM DEBT -- -- 281,529 -- ------ -------- -------- --- DEFERRED CREDITS Deferred income taxes 61 (551) (34,613) -- Deferred investment and energy tax credits -- -- -- -- Derivative Liability -- -- 80,955 -- Deferred Revenue -- -- (9) -- Other -- -- 1 -- ------ -------- -------- --- Total Deferred Credits 61 (551) 46,334 -- ------ -------- -------- --- MINORITY INTEREST -- -- (288) -- ------ -------- -------- --- STOCKHOLDER'S EQUITY Capital stock -- -- -- -- Stock Subs Payable -- -- -- -- Contributed capital -- -- 19,339 -- Retained earnings 539 (4,652) (3,710) -- Other Comprehensive Income -- -- (56,767) -- Cumulative Translation Adjustment -- -- -- -- ------ -------- -------- --- Total Stockholder's Equity 539 (4,652) (41,138) -- ------ -------- -------- --- TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY $3,215 $ 2,833 $351,866 $-- ====== ======== ======== === PSEG RESOURCES L.L.C. CONSOLIDATING STATEMENT OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 2003 (THOUSANDS) PSEG INTERCOMPANY PSEG RESOURCES ELIMINATIONS RESOURCES PSRC CONSOL. & RECLASS. LLC CONSOL.(A) --------- ------------ --------- ---------- REVENUES: Income from capital lease agreements 206,265 -- 61,553 118,335 Investment gains (losses) (4,199) -- -- (4,199) Interest and dividend income 318 1 42 275 DSM Revenues 24,852 -- -- 24,852 Operating Lease Income 10,387 -- -- 10,387 Other 793 (3) 70 726 Equity in subsidiary earnings -- (99,286) 99,286 -- --------- -------- --------- -------- Total revenues 238,416 (99,288) 160,952 150,376 --------- -------- --------- -------- OPERATING EXPENSES: Operation and maintenance 15,509 (1) -- 15,510 Depreciation and amortization 5,032 -- 15 5,017 Administrative and general 13,412 (2) 7,596 5,221 --------- -------- --------- -------- Total operating expenses 33,953 (3) 7,610 25,748 --------- -------- --------- -------- INCOME FROM EQUITY METHOD INVESTMENTS: Income (loss) from partnerships 1,236 -- -- 1,236 --------- -------- --------- -------- Total income from equity method investments 1,236 -- -- 1,236 OPERATING INCOME 205,699 (99,285) 153,341 125,863 --------- -------- --------- -------- OTHER INCOME Gain on extinguishment of debt (183) 1 (184) -- --------- -------- --------- -------- Total other income (183) 1 (184) -- INTEREST EXPENSE: PSEG Capital Corporation 2,867 -- 2,867 -- Energy Holdings Inc. 90,704 -- 90,704 -- Other 2,825 -- (519) 3,344 Capitalized interest -- -- -- -- --------- -------- --------- -------- Net interest expense 96,396 -- 93,052 3,344 --------- -------- --------- -------- INCOME BEFORE INCOME TAXES 109,120 (99,284) 60,106 122,519 --------- -------- --------- -------- INCOME TAXES: Current (214,423) 1 (160,889) (50,763) Deferred 252,475 (2) 149,192 99,172 Investment and energy tax credits - net (736) 1 (736) --------- -------- --------- -------- Total income taxes 37,316 -- (11,698) 47,673 --------- -------- --------- -------- MINORITY INTERESTS -- -- -- -- --------- -------- --------- -------- NET INCOME 71,804 (99,284) 71,804 74,846 --------- -------- --------- -------- PREFERRED STOCK DIVIDEND / PREFERENCE UNITS 5,999 -- 5,999 -- --------- -------- --------- -------- EARNINGS AVAILABLE TO COMMON STOCK $ 65,805 $(99,284) $ 65,805 $ 74,846 ========= ======== ========= ======== NESBITT PSEGR Midwest ASSETT PSEG COLLINS EME 2 (LLC) RECOVERY CONSOL. CONSOL -------- ------------ ------------- REVENUES: Income from capital lease agreements 6,244 10,695 9,437 Investment gains (losses) -- -- -- Interest and dividend income -- -- -- DSM Revenues -- -- -- Operating Lease Income -- -- -- Other -- -- -- Equity in subsidiary earnings -- -- -- ------- ------- ------ Total revenues 6,244 10,695 9,437 ------- ------- ------ OPERATING EXPENSES: Operation and maintenance -- -- -- Depreciation and amortization -- -- -- Administrative and general 596 1 1 ------- ------- ------ Total operating expenses 596 1 1 ------- ------- ------ INCOME FROM EQUITY METHOD INVESTMENTS: Income (loss) from partnerships -- -- -- ------- ------- ------ Total income from equity method investments -- -- -- OPERATING INCOME 5,648 10,694 9,436 ------- ------- ------ OTHER INCOME Gain on extinguishment of debt -- -- -- ------- ------- ------ Total other income -- -- -- INTEREST EXPENSE: PSEG Capital Corporation -- -- -- Energy Holdings Inc. -- -- -- Other -- -- -- Capitalized interest -- -- -- ------- ------- ------ Net interest expense -- -- -- ------- ------- ------ INCOME BEFORE INCOME TAXES 5,648 10,694 9,436 ------- ------- ------ INCOME TAXES: Current (2,772) -- -- Deferred 4,113 -- -- Investment and energy tax credits - net -- -- -- ------- ------- ------ Total income taxes 1,341 -- -- ------- ------- ------ MINORITY INTERESTS -- -- -- ------- ------- ------ NET INCOME 4,307 10,694 9,436 ------- ------- ------ PREFERRED STOCK DIVIDEND / PREFERENCE UNITS -- -- -- ------- ------- ------ EARNINGS AVAILABLE TO COMMON STOCK $ 4,307 $10,694 $9,436 ======= ======= ====== (A) Exceeds 2% of Enterprise's consolidated assets. For additional information, see Item I. PSEG RESOURCES L.L.C. CONSOLIDATING STATEMENT OF RETAINED EARNINGS FOR THE YEAR ENDED DECEMBER 31, 2003 (THOUSANDS) PSEG INTERCOMPANY PSEG RESOURCES ELIMINATIONS RESOURCES PSRC CONSOL. & RECLASS. LLC CONSOL. --------- ------------ --------- -------- BALANCE JANUARY 1, 2003 $368,867 $(419,180) $368,867 $330,361 NET INCOME 71,804 (99,284) 71,804 74,846 -------- --------- -------- -------- TOTAL 440,671 (518,464) 440,671 405,207 -------- --------- -------- -------- DIVIDENDS DECLARED (Incl. Preferred Stock Dividends) 5,999 -- 5,999 -- -------- --------- -------- -------- TRANSFER OF ASSETS FROM COLLINS/EME2 TO NESBITT 2 BALANCE DECEMBER 31, 2003 $434,672 $(518,464) $434,672 $405,207 ======== ========= ======== ======== NESBITT PSEGR Midwest ASSETT PSEG COLLINS EME 2 (LLC) RECOVERY CONSOL. CONSOL -------- ------------ ------------- BALANCE JANUARY 1, 2003 $ -- $ 49,093 $ 39,728 NET INCOME 4,307 10,694 9,436 -------- -------- -------- TOTAL 4,307 59,787 49,163 -------- -------- -------- DIVIDENDS DECLARED (Incl. Preferred Stock Dividends) -- -- -- -------- -------- -------- TRANSFER OF ASSETS FROM COLLINS/EME2 TO NESBITT 108,952 (59,787) (49,163) BALANCE DECEMBER 31, 2003 $113,258 $ -- $ -- ======== ======== ======== PSEG RESOURCES L.L.C. CONSOLIDATING BALANCE SHEET AS OF DECEMBER 31, 2003 (THOUSANDS) PSEG INTERCOMPANY PSEG RESOURCES ELIMINATIONS RESOURCES PSRC CONSOL. & RECLASS. LLC CONSOL. ---------- ------------ ---------- ---------- ASSETS CURRENT ASSETS Cash and temporary cash investments $ 7,177 $ -- $ 1,095 $ 5,990 Accounts and Notes receivable: Trade 2,882 -- -- 2,882 Allowance for doubtful accounts (95) -- -- (95) Other 210 1 -- 210 PSE&G -- -- -- -- PSEG 83,848 (1) 97,500 (13,652) Other associated companies 3,553 (121,201) 99,517 3,551 Notes receivable: -- -- -- -- Associated companies -- -- -- -- Other -- -- -- -- Interest & dividiend receivable 70 (1) -- 70 Prepayments 966 3 -- 963 ---------- ----------- ---------- ---------- Total Current Assets 98,611 (121,199) 198,112 (81) ---------- ----------- ---------- ---------- PROPERTY, PLANT AND EQUIPMENT Real estate 84,849 -- -- 84,849 Other 2,109 -- 99 2,011 Accum. depr. and amortization (13,587) -- (89) (13,498) Valuation allowances -- -- -- -- ---------- ----------- ---------- ---------- Property, Plant and Equipment-net 73,371 -- 10 73,362 ---------- ----------- ---------- ---------- INVESTMENTS Subsidiaries -- (1,174,943) 1,174,943 -- Capital lease agreements 2,987,071 (1) 789,450 1,816,005 Partnership interests / Other 94,155 -- -- 94,155 Corporate joint ventures -- -- -- -- Securities 4,400 -- -- 4,400 Other investments 22,765 -- -- 22,765 Valuation allowances (5,677) 1 -- (5,678) ---------- ----------- ---------- ---------- Total Investments 3,102,714 (1,174,943) 1,964,393 1,931,647 ---------- ----------- ---------- ---------- OTHER ASSETS Special funds-pension 1,767 -- 1,767 -- Unamortized fees -- -- -- -- Deferred intangible assets 600 -- 600 -- Deferred tax assets 112 -- 73 39 ---------- ----------- ---------- ---------- Total Other Assets 2,479 -- 2,440 39 ---------- ----------- ---------- ---------- TOTAL ASSETS $3,277,175 $(1,296,142) $2,164,955 $2,004,967 ========== =========== ========== ========== NESBITT PSEGR Midwest ASSETT PSEG COLLINS EME 2 (LLC) RECOVERY CONSOL. CONSOL -------- ------------ -------------- ASSETS CURRENT ASSETS Cash and temporary cash investments $ 92 $-- $-- Accounts and Notes receivable: Trade -- -- -- Allowance for doubtful accounts -- -- -- Other -- -- -- PSE&G -- -- -- PSEG -- -- -- Other associated companies 21,687 -- -- Notes receivable: -- -- -- Associated companies -- -- -- Other -- -- -- Interest & dividiend receivable -- -- -- Prepayments -- -- -- -------- --- --- Total Current Assets 21,778 -- -- -------- --- --- PROPERTY, PLANT AND EQUIPMENT Real estate -- -- -- Other -- -- -- Accum. depr. and amortization -- -- -- Valuation allowances -- -- -- -------- --- --- Property, Plant and Equipment-net -- -- -- -------- --- --- INVESTMENTS Subsidiaries -- -- -- Capital lease agreements 381,618 -- -- Partnership interests / Other -- -- -- Corporate joint ventures -- -- -- Securities -- -- -- Other investments -- -- -- Valuation allowances -- -- -- -------- --- --- Total Investments 381,618 -- -- -------- --- --- OTHER ASSETS Special funds-pension -- -- -- Unamortized fees -- -- -- Deferred intangible assets -- -- -- Deferred tax assets -- -- -- -------- --- --- Total Other Assets -- -- -- -------- --- --- TOTAL ASSETS $403,396 $-- $-- ======== === === PSEG RESOURCES L.L.C. CONSOLIDATING BALANCE SHEET AS OF DECEMBER 31, 2003 (THOUSANDS) PSEG INTERCOMPANY PSEG RESOURCES ELIMINATIONS RESOURCES PSRC CONSOL. & RECLASS. LLC CONSOL. ---------- ------------ ---------- ---------- LIABILITIES AND STOCKHOLDER'S EQUITY CURRENT LIABILITIES Accounts payable: Trade $ 262 $ -- $ -- $ 262 Taxes 373 -- 40 333 Other 4,516 -- 319 4,197 Interest 924 -- 835 89 Associated companies 36,533 (121,200) 58,079 99,652 Notes payable: PSEG Capital Corporation -- -- -- -- Enterprise Capital Funding Corp. -- -- -- -- Enterprise Group Development Corp. -- -- -- -- Energy Holdings Inc. 940,972 -- 940,972 -- PSEG Resources -- -- -- -- Current portion of long-term debt 1,380 -- -- 1,380 ---------- ----------- ---------- ---------- Total Current Liabilities 984,960 (121,200) 1,000,245 105,913 ---------- ----------- ---------- ---------- TOTAL LONG-TERM DEBT 30,975 (1) -- 30,976 ---------- ----------- ---------- ---------- DEFERRED CREDITS Deferred income taxes 1,589,802 -- 493,436 1,092,253 Deferred investment and energy tax credits -- -- -- -- Other 2,548 -- 2,548 -- ---------- ----------- ---------- ---------- Total Deferred Credits 1,592,350 -- 495,983 1,092,253 ---------- ----------- ---------- ---------- STOCKHOLDER'S EQUITY Capital stock -- (107,001) -- 107,001 Preference units 134,200 -- 134,200 -- Preferred stock -- -- -- -- Members' Capital 100,134 -- 100,134 -- Contributed capital -- (549,475) (164) 263,618 Retained earnings 434,672 (518,464) 434,672 405,207 Accumulated other comprehensive income (116) -- (116) -- ---------- ----------- ---------- ---------- Total Stockholder's Equity 668,890 (1,174,940) 668,727 775,826 ---------- ----------- ---------- ---------- TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY $3,277,175 $(1,296,142) $2,164,955 $2,004,967 ========== =========== ========== ========== NESBITT PSEGR Midwest ASSETT PSEG COLLINS EME 2 (LLC) RECOVERY CONSOL. CONSOL -------- ------------ ------------- LIABILITIES AND STOCKHOLDER'S EQUITY CURRENT LIABILITIES Accounts payable: Trade $ -- $-- $-- Taxes -- -- -- Other -- -- -- Interest -- -- -- Associated companies 4 -- -- Notes payable: PSEG Capital Corporation -- -- -- Enterprise Capital Funding Corp. -- -- -- Enterprise Group Development Corp. -- -- -- Energy Holdings Inc. -- -- -- PSEG Resources -- -- -- Current portion of long-term debt -- -- -- -------- --- --- Total Current Liabilities 4 -- -- -------- --- --- TOTAL LONG-TERM DEBT -- -- -- -------- --- --- DEFERRED CREDITS Deferred income taxes 4,113 -- -- Deferred investment and energy tax credits -- -- -- Other -- -- -- -------- --- --- Total Deferred Credits 4,113 -- -- -------- --- --- STOCKHOLDER'S EQUITY Capital stock -- -- -- Preference units -- -- -- Preferred stock -- -- -- Members' Capital -- -- -- Contributed capital 286,021 -- -- Retained earnings 113,258 -- -- Accumulated other comprehensive income -- -- -- -------- --- --- Total Stockholder's Equity 399,279 -- -- -------- --- --- TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY $403,396 $-- $-- ======== === === PUBLIC SERVICE RESOURCES CORPORATION CONSOLIDATING STATEMENT OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 2003 (THOUSANDS) INTERCOMPANY PSRC ELIMINATIONS RCMC RCIC CONSOL. & RECLASS. PSRC CONSOL. (A) CONSOL RCSC RCFC -------- ------------ -------- ----------- ------- ---- ---- REVENUES: Income from capital lease agreements $118,335 $ -- $ 46,328 $ 46,551 $ 5,689 $ -- $-- Investment gains (losses) (4,199) -- 8,714 -- -- -- -- Interest and dividend income 275 (8,944) 8,944 68 -- -- -- DSM Revenues 24,852 -- -- -- -- -- -- Operating Lease Income 10,387 -- 8,870 1,517 -- -- -- Other 726 2 418 302 -- 1 -- Equity in subsidiary earnings -- (42,111) 42,111 -- -- -- -- -------- -------- -------- -------- ------- ---- --- Total revenues 150,376 (51,053) 115,385 48,438 5,689 1 -- -------- -------- -------- -------- ------- ---- --- OPERATING EXPENSES: Operation and maintenance 15,510 1 4,336 334 -- -- -- Depreciation and amortization 5,017 -- 3,708 334 -- -- -- Administrative and general 5,221 1 344 902 36 1 -- -------- -------- -------- -------- ------- ---- --- Total operating expenses 25,748 2 8,388 1,570 36 1 -- -------- -------- -------- -------- ------- ---- --- INCOME FROM EQUITY METHOD INVESTMENTS: Income (loss) from partnerships 1,236 -- (213) 144 -- -- -- -------- -------- -------- -------- ------- ---- --- Total income from equity method investments 1,236 -- (213) 144 -- -- -- OPERATING INCOME 125,863 (51,055) 106,784 47,012 5,654 -- -- -------- -------- -------- -------- ------- ---- --- OTHER INCOME Gain on extinguishment of debt -- -- -- -- -- -- -- -------- -------- -------- -------- ------- ---- --- Total other income -- -- -- -- -- -- -- INTEREST EXPENSE: PSEG Capital Corporation -- -- -- -- -- -- -- Energy Holdings Inc. -- -- -- -- -- -- -- Other 3,344 (8,944) 1,840 9,928 -- -- -- Capitalized interest -- -- -- -- -- -- -- -------- -------- -------- -------- ------- ---- --- Net interest expense 3,344 (8,944) 1,840 9,928 -- -- -- -------- -------- -------- -------- ------- ---- --- INCOME BEFORE INCOME TAXES 122,519 (42,111) 104,944 37,084 5,654 -- -- -------- -------- -------- -------- ------- ---- --- INCOME TAXES: Current (50,763) (1) (10,151) (25,678) (6,673) (50) 2 Deferred 99,172 2 40,513 41,457 8,654 -- -- Investment and energy tax credits - net (736) -- (267) (469) -- -- -- -------- -------- -------- -------- ------- ---- --- Total income taxes 47,673 1 30,095 15,310 1,981 (50) 2 -------- -------- -------- -------- ------- ---- --- MINORITY INTERESTS -- -- -- -- -- -- -- -------- -------- -------- -------- ------- ---- --- NET INCOME 74,846 (42,112) 74,849 21,774 3,672 50 (2) -------- -------- -------- -------- ------- ---- --- PREFERRED STOCK DIVIDEND REQUIREMENT -- -- -- -- -- -- -- -------- -------- -------- -------- ------- ---- --- EARNINGS AVAILABLE TO COMMON STOCK $ 74,846 $(42,112) $ 74,849 $ 21,774 $ 3,672 $ 50 $(2) ======== ======== ======== ======== ======= ==== === (A) Exceeds 2% of Enterprise's consolidated assets. For additional information, see Item I. PUBLIC SERVICE RESOURCES CORPORATION CONSOLIDATING STATEMENT OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 2003 (THOUSANDS) PSRC SC PSRC SC PSRC SC PSRC SC PSRC, INC. ONE TWO THREE FOUR CONSOL ENTECH PSRC II, INC. ------- ------- ------- ------- ---------- ------ ------------- REVENUES: Income from capital lease agreements $-- $-- $-- $-- $ 1,535 $-- $ 27 Investment gains (losses) -- -- -- -- (7,858) -- (5,055) Interest and dividend income -- -- -- -- 23 -- 184 DSM Revenues -- -- -- -- -- -- -- Operating Lease Income -- -- -- -- -- -- -- Other 2 1 1 1 -- -- -- Equity in subsidiary earnings -- -- -- -- -- -- -- --- --- --- --- ------- --- ------- Total revenues 2 1 1 1 (6,300) -- (4,844) --- --- --- --- ------- --- ------- OPERATING EXPENSES: Operation and maintenance -- -- -- -- -- -- -- Depreciation and amortization -- -- -- -- 857 -- 8 Administrative and general 2 1 1 1 402 -- 507 --- --- --- --- ------- --- ------- Total operating expenses 2 1 1 1 1,259 -- 515 --- --- --- --- ------- --- ------- INCOME FROM EQUITY METHOD INVESTMENTS: Income (loss) from partnerships -- -- -- -- -- -- 1,304 --- --- --- --- ------- --- ------- Total income from equity method investments -- -- -- -- -- -- 1,304 OPERATING INCOME -- -- -- -- (7,559) -- (4,054) --- --- --- --- ------- --- ------- OTHER INCOME Gain on extinguishment of debt -- -- -- -- -- -- -- --- --- --- --- ------- --- ------- Total other income -- -- -- -- -- -- -- INTEREST EXPENSE: PSEG Capital Corporation -- -- -- -- -- -- -- Energy Holdings Inc. -- -- -- -- -- -- -- Other -- -- -- -- -- -- 520 Capitalized interest -- -- -- -- -- -- -- --- --- --- --- ------- --- ------- Net interest expense -- -- -- -- -- -- 520 --- --- --- --- ------- --- ------- INCOME BEFORE INCOME TAXES -- -- -- -- (7,559) -- (4,574) --- --- --- --- ------- --- ------- INCOME TAXES: Current -- -- -- -- (4,105) 2 (5,381) Deferred -- -- -- -- 2,076 -- 3,071 Investment and energy tax credits - net -- -- -- -- -- -- -- --- --- --- --- ------- --- ------- Total income taxes -- -- -- -- (2,029) 2 (2,310) --- --- --- --- ------- --- ------- MINORITY INTERESTS -- -- -- -- -- -- -- --- --- --- --- ------- --- ------- NET INCOME -- -- -- -- (5,530) (2) (2,265) --- --- --- --- ------- --- ------- PREFERRED STOCK DIVIDEND REQUIREMENT -- -- -- -- -- -- -- --- --- --- --- ------- --- ------- EARNINGS AVAILABLE TO COMMON STOCK $-- $-- $-- $-- $(5,530) $(2) $(2,265) === === === === ======= === ======= PSEGR PJM RELIANT (LLC) DEMAND CONSOL MGMT CO. ------------- -------- REVENUES: Income from capital lease agreements $18,205 Investment gains (losses) -- Interest and dividend income -- DSM Revenues -- 24,852 Operating Lease Income -- Other -- Equity in subsidiary earnings -- ------- ------- Total revenues 18,205 24,852 ------- ------- OPERATING EXPENSES: Operation and maintenance -- 10,840 Depreciation and amortization -- 110 Administrative and general 559 2,465 ------- ------- Total operating expenses 559 13,415 ------- ------- INCOME FROM EQUITY METHOD INVESTMENTS: Income (loss) from partnerships -- -- ------- ------- Total income from equity method investments -- -- OPERATING INCOME 17,646 11,437 ------- ------- OTHER INCOME Gain on extinguishment of debt -- -- ------- ------- Total other income -- -- INTEREST EXPENSE: PSEG Capital Corporation -- -- Energy Holdings Inc. -- -- Other -- -- Capitalized interest -- -- ------- ------- Net interest expense -- -- ------- ------- INCOME BEFORE INCOME TAXES 17,646 11,437 ------- ------- INCOME TAXES: Current -- 1,271 Deferred -- 3,401 Investment and energy tax credits - net -- -- ------- ------- Total income taxes -- 4,672 ------- ------- MINORITY INTERESTS -- -- ------- ------- NET INCOME 17,646 6,765 ------- ------- PREFERRED STOCK DIVIDEND REQUIREMENT -- -- ------- ------- EARNINGS AVAILABLE TO COMMON STOCK $17,646 $ 6,765 ======= ======= (A) Exceeds 2% of Enterprise's consolidated assets. For additional information, see Item I. PUBLIC SERVICE RESOURCES CORPORATION CONSOLIDATING STATEMENT OF RETAINED EARNINGS FOR THE YEAR ENDED DECEMBER 31, 2003 (THOUSANDS) INTERCOMPANY PSRC ELIMINATIONS RCMC RCIC CONSOL. & RECLASS. PSRC CONSOL. CONSOL RCSC RCFC -------- ------------ -------- -------- ------- ------- ------- BALANCE JANUARY 1, 2003 $330,361 $(282,831) $330,361 $183,731 $51,671 $(6,309) $ 5,671 NET INCOME 74,846 (42,112) 74,849 21,774 3,672 50 (2) -------- --------- -------- -------- ------- ------- ------- TOTAL 405,207 (324,943) 405,210 205,505 55,343 (6,259) 5,669 -------- --------- -------- -------- ------- ------- ------- DIVIDENDS DECLARED (Incl. Preferred Stock Dividends) -- (2,210) -- -- -- -- -- -------- --------- -------- -------- ------- ------- ------- BALANCE DECEMBER 31, 2003 $405,207 $(322,733) $405,210 $205,505 $55,343 $(6,259) $ 5,669 ======== ========= ======== ======== ======= ======= ======= PUBLIC SERVICE RESOURCES CORPORATION CONSOLIDATING STATEMENT OF RETAINED EARNINGS FOR THE YEAR ENDED DECEMBER 31, 2003 (THOUSANDS) PSRC SC PSRC SC PSRC SC PSRC SC PSRC, INC. ONE TWO THREE FOUR CONSOL ------- ------- ------- ------- ---------- BALANCE JANUARY 1, 2003 $(3) $(3) $-- $(535) $ 9,084 NET INCOME -- -- -- -- (5,530) --- --- --- ----- ------- TOTAL (3) (3) -- (535) 3,553 --- --- --- ----- ------- DIVIDENDS DECLARED (Incl. Preferred Stock Dividends) -- -- -- -- 2,210 --- --- --- ----- ------- BALANCE DECEMBER 31, 2003 $(3) $(3) $-- $(535) $ 1,343 === === === ===== ======= PSEGR PJM RELIANT (LLC) DEMAND ENTECH PSRC II, INC. CONSOL MGMT CO. ------ ------------- ------------- -------- BALANCE JANUARY 1, 2003 $(976) $(37,486) $50,710 $27,276 NET INCOME (2) (2,265) 17,646 6,765 ----- -------- ------- ------- TOTAL (978) (39,751) 68,355 34,042 ----- -------- ------- ------- DIVIDENDS DECLARED (Incl. Preferred Stock Dividends) -- -- -- -- ----- -------- ------- ------- BALANCE DECEMBER 31, 2003 $(978) $(39,751) $68,355 $34,042 ===== ======== ======= ======= PUBLIC SERVICE RESOURCES CORPORATION CONSOLIDATING BALANCE SHEET AS OF DECEMBER 31, 2003 (THOUSANDS) INTERCOMPANY PSRC ELIMINATIONS RCMC CONSOL. & RECLASS. PSRC CONSOL. ---------- ------------ ---------- --------- ASSETS CURRENT ASSETS Cash and temporary cash investments $ 5,990 $ -- $ 3,466 $ 1,136 Accounts and Notes receivable: Trade 2,882 -- -- -- Allowance for doubtful accounts (95) -- -- -- Other 210 -- 125 48 PSE&G -- -- -- -- PSEG (13,652) -- (14,173) -- Other associated companies 3,551 (340,371) 8,152 67,413 Notes receivable: Associated companies -- (105,225) 105,225 -- Other -- -- -- -- Interest & dividiend receivable 70 -- 1 -- Prepayments 963 -- 34 930 ---------- ----------- ---------- -------- Total Current Assets (81) (445,596) 102,830 69,527 ---------- ----------- ---------- -------- PROPERTY, PLANT AND EQUIPMENT Real estate 84,849 -- 56,381 28,467 Other 2,011 -- 799 -- Accum. depr. and amortization (13,498) -- (12,395) (334) Valuation allowances -- -- -- -- ---------- ----------- ---------- -------- Property, Plant and Equipment-net 73,362 -- 44,785 28,133 ---------- ----------- ---------- -------- INVESTMENTS Subsidiaries -- (936,341) 936,341 -- Capital lease agreements 1,816,005 -- 657,103 789,290 Partnership interests / Other 94,155 -- 1,747 1,732 Corporate joint ventures -- -- -- -- Securities 4,400 -- 400 -- Other investments 22,765 -- -- -- Valuation allowances (5,678) -- (5,678) -- ---------- ----------- ---------- -------- Total Investments 1,931,647 (936,341) 1,589,913 791,022 ---------- ----------- ---------- -------- OTHER ASSETS Special funds-pension -- -- -- -- Unamortized fees -- -- -- -- Deferred tax assets 39 -- -- -- ---------- ----------- ---------- -------- Total Other Assets 39 -- -- -- ---------- ----------- ---------- -------- TOTAL ASSETS $2,004,967 $(1,381,938) $1,737,528 $888,682 ========== =========== ========== ======== RCIC CONSOL RCSC RCFC -------- ---- ------- ASSETS CURRENT ASSETS Cash and temporary cash investments $ 11 $ 5 $ -- Accounts and Notes receivable: Trade -- -- -- Allowance for doubtful accounts -- -- -- Other -- 28 -- PSE&G -- -- -- PSEG -- -- -- Other associated companies 39,597 -- 12,492 Notes receivable: Associated companies -- -- -- Other -- -- -- Interest & dividiend receivable -- -- -- Prepayments -- -- -- -------- --- ------- Total Current Assets 39,608 33 12,492 -------- --- ------- PROPERTY, PLANT AND EQUIPMENT Real estate -- -- -- Other -- -- -- Accum. depr. and amortization -- -- -- Valuation allowances -- -- -- -------- --- ------- Property, Plant and Equipment-net -- -- -- -------- --- ------- INVESTMENTS Subsidiaries -- -- -- Capital lease agreements 89,167 -- -- Partnership interests / Other -- -- -- Corporate joint ventures -- -- -- Securities -- -- -- Other investments -- -- -- Valuation allowances -- -- -- -------- --- ------- Total Investments 89,167 -- -- -------- --- ------- OTHER ASSETS Special funds-pension -- -- -- Unamortized fees -- -- -- Deferred tax assets -- -- -- -------- --- ------- Total Other Assets -- -- -- -------- --- ------- TOTAL ASSETS $128,775 $33 $12,492 ======== === ======= PUBLIC SERVICE RESOURCES CORPORATION CONSOLIDATING BALANCE SHEET AS OF DECEMBER 31, 2003 (THOUSANDS) PSRC SC PSRC SC PSRC SC PSRC SC PSRC, INC. ONE TWO THREE FOUR CONSOL ------- ------- ------- ------- ---------- ASSETS CURRENT ASSETS Cash and temporary cash investments $10 $10 $10 $ 5 $ 102 Accounts and Notes receivable: Trade -- -- -- -- -- Allowance for doubtful accounts -- -- -- -- -- Other -- -- -- 8 -- PSE&G -- -- -- -- -- PSEG -- -- -- -- -- Other associated companies -- -- -- -- 6,362 Notes receivable: Associated companies -- -- -- -- -- Other -- -- -- -- -- Interest & dividiend receivable -- -- -- -- -- Prepayments -- -- -- -- -- --- --- --- --- ------- Total Current Assets 10 10 10 13 6,464 --- --- --- --- ------- PROPERTY, PLANT AND EQUIPMENT Real estate -- -- -- -- -- Other -- -- -- -- -- Accum. depr. and amortization -- -- -- -- -- Valuation allowances -- -- -- -- -- --- --- --- --- ------- Property, Plant and Equipment-net -- -- -- -- -- --- --- --- --- ------- INVESTMENTS Subsidiaries -- -- -- -- -- Capital lease agreements -- -- -- -- 41,487 Partnership interests / Other -- -- -- -- -- Corporate joint ventures -- -- -- -- -- Securities -- -- -- -- -- Other investments -- -- -- -- -- Valuation allowances -- -- -- -- -- --- --- --- --- ------- Total Investments -- -- -- -- 41,487 --- --- --- --- ------- OTHER ASSETS Special funds-pension -- -- -- -- -- Unamortized fees -- -- -- -- -- Deferred tax assets -- -- -- -- -- --- --- --- --- ------- Total Other Assets -- -- -- -- -- --- --- --- --- ------- TOTAL ASSETS $10 $10 $10 $13 $47,951 === === === === ======= PSEGR PJM RELIANT (LLC) DEMAND ENTECH PSRC II, INC. CONSOL MGMT CO. ------ ------------- ------------- -------- ASSETS CURRENT ASSETS Cash and temporary cash investments $-- $ 1,206 $ 29 $ -- Accounts and Notes receivable: Trade -- -- -- 2,882 Allowance for doubtful accounts -- -- -- (95) Other -- -- -- -- PSE&G -- -- -- -- PSEG -- -- -- 521 Other associated companies 42 183,530 2,093 24,241 Notes receivable: Associated companies -- -- -- -- Other -- -- -- -- Interest & dividiend receivable -- 69 -- -- Prepayments -- -- -- -- --- -------- -------- -------- Total Current Assets 42 184,805 2,122 27,549 --- -------- -------- -------- PROPERTY, PLANT AND EQUIPMENT Real estate -- -- -- -- Other -- 41 -- 1,170 Accum. depr. and amortization -- (8) -- (761) Valuation allowances -- -- -- -- --- -------- -------- -------- Property, Plant and Equipment-net -- 33 -- 409 --- -------- -------- -------- INVESTMENTS Subsidiaries -- -- -- -- Capital lease agreements -- 147 238,810 -- Partnership interests / Other -- 90,677 -- -- Corporate joint ventures -- -- -- -- Securities -- 4,000 -- -- Other investments -- -- -- 22,765 Valuation allowances -- -- -- --- -------- -------- -------- Total Investments -- 94,824 238,810 22,765 --- -------- -------- -------- OTHER ASSETS Special funds-pension -- -- -- -- Unamortized fees -- -- -- -- Deferred tax assets -- -- -- 39 --- -------- -------- -------- Total Other Assets -- -- -- 39 --- -------- -------- -------- TOTAL ASSETS $42 $279,662 $240,932 $ 50,762 === ======== ======== ======== PUBLIC SERVICE RESOURCES CORPORATION CONSOLIDATING BALANCE SHEET AS OF DECEMBER 31, 2003 (THOUSANDS) INTERCOMPANY PSRC ELIMINATIONS RCMC RCIC CONSOL. & RECLASS. PSRC CONSOL. (A) CONSOL RCSC RCFC ---------- ------------ ---------- ----------- -------- ------- ------- LIABILITIES AND MEMBER'S EQUITY CURRENT LIABILITIES Accounts payable: Trade $ 262 $ -- $ -- $ -- $ -- $ -- $ -- Taxes 333 -- -- 209 -- -- -- Other 4,197 -- 2,935 97 -- -- -- Interest 89 -- -- 89 -- -- -- Associated companies 99,652 (340,370) 431,775 271 -- 6,282 -- Notes payable: PSEG Capital Corporation -- -- -- -- -- -- -- Enterprise Capital Funding Corp. -- -- -- -- -- -- -- Enterprise Group Development Corp. -- -- -- -- -- -- -- Energy Holdings Inc. -- -- -- -- -- -- -- PSEG Resources -- (105,225) -- 105,225 -- -- -- Current portion of long-term debt 1,380 -- 1,045 335 -- -- -- ---------- ----------- ---------- -------- -------- ------- ------- Total Current Liabilities 105,913 (445,595) 435,755 106,226 -- 6,282 -- ---------- ----------- ---------- -------- -------- ------- ------- TOTAL LONG-TERM DEBT 30,976 -- 19,702 11,273 -- -- -- ---------- ----------- ---------- -------- -------- ------- ------- DEFERRED CREDITS Deferred income taxes 1,092,253 -- 506,242 525,508 62,268 -- (49) Deferred investment and energy tax credits -- -- -- -- -- -- -- Other -- -- -- -- -- -- -- ---------- ----------- ---------- -------- -------- ------- ------- Total Deferred Credits 1,092,253 -- 506,242 525,508 62,268 -- (49) ---------- ----------- ---------- -------- -------- ------- ------- MEMBER'S EQUITY Capital stock 107,001 (57) 107,001 2 1 10 1 Preferred stock -- -- -- -- -- -- -- Contributed capital 263,618 (613,553) 263,618 40,168 11,163 -- 6,871 Retained earnings 405,207 (322,733) 405,210 205,505 55,343 (6,259) 5,669 ---------- ----------- ---------- -------- -------- ------- ------- Total Stockholder's Equity 775,826 (936,343) 775,829 245,675 66,507 (6,249) 12,541 ---------- ----------- ---------- -------- -------- ------- ------- TOTAL LIABILITIES AND MEMBER'S EQUITY $2,004,967 $(1,381,938) $1,737,528 $888,682 $128,775 $ 33 $12,492 ========== =========== ========== ======== ======== ======= ======= PUBLIC SERVICE RESOURCES CORPORATION CONSOLIDATING BALANCE SHEET AS OF DECEMBER 31, 2003 (THOUSANDS) PSRC SC PSRC SC PSRC SC PSRC SC PSRC, INC. ONE TWO THREE FOUR CONSOL ------- ------- ------- ------- ---------- LIABILITIES AND MEMBER'S EQUITY CURRENT LIABILITIES Accounts payable: Trade $-- $-- $-- $ -- $ -- Taxes -- -- -- -- -- Other -- -- -- -- -- Interest -- -- -- -- -- Associated companies 3 3 -- 538 36 Notes payable: PSEG Capital Corporation -- -- -- -- -- Enterprise Capital Funding Corp. -- -- -- -- -- Enterprise Group Development Corp. -- -- -- -- -- Energy Holdings Inc. -- -- -- -- -- PSEG Resources -- -- -- -- -- Current portion of long-term debt -- -- -- -- -- --- --- --- ----- ------- Total Current Liabilities 3 3 -- 538 36 --- --- --- ----- ------- TOTAL LONG-TERM DEBT -- -- -- -- -- --- --- --- ----- ------- DEFERRED CREDITS Deferred income taxes -- -- -- -- 31,538 Deferred investment and energy tax credits -- -- -- -- -- Other -- -- -- -- -- --- --- --- ----- ------- Total Deferred Credits -- -- -- -- 31,538 --- --- --- ----- ------- MEMBER'S EQUITY Capital stock 10 10 10 10 1 Preferred stock -- -- -- -- -- Contributed capital -- -- -- -- 15,034 Retained earnings (3) (3) -- (535) 1,343 --- --- --- ----- ------- Total Stockholder's Equity 7 7 10 (525) 16,378 --- --- --- ----- ------- TOTAL LIABILITIES AND MEMBER'S EQUITY $10 $10 $10 $ 13 $47,951 === === === ===== ======= PSEGR PJM PSEG RELIANT (LLC) ASSET ENTECH PSRC II, INC. CONSOL MGMT CO. ------- ------------- ------------- -------- LIABILITIES AND MEMBER'S EQUITY CURRENT LIABILITIES Accounts payable: Trade $ -- $ -- $ -- $ 262 Taxes -- -- -- 123 Other -- -- -- 1,164 Interest -- -- -- -- Associated companies -- -- 1,077 38 Notes payable: PSEG Capital Corporation -- -- -- -- Enterprise Capital Funding Corp. -- -- -- -- Enterprise Group Development Corp. -- -- -- -- Energy Holdings Inc. -- -- -- -- PSEG Resources -- -- -- -- Current portion of long-term debt -- -- -- -- ------ -------- -------- ------- Total Current Liabilities -- -- 1,077 1,588 ------ -------- -------- ------- TOTAL LONG-TERM DEBT -- -- -- -- ------ -------- -------- ------- DEFERRED CREDITS Deferred income taxes -- (33,253) -- -- Deferred investment and energy tax credits -- -- -- -- Other -- -- -- -- ------ -------- -------- ------- TOTAL DEFERRED CREDITS -- (33,253) -- -- ------ -------- -------- ------- MEMBER'S EQUITY Capital stock 1 1 -- -- Preferred stock -- -- -- -- Contributed capital 1,018 352,665 171,500 15,133 Retained earnings (978) (39,751) 68,355 34,042 ------ ------- -------- ------ Total Stockholder's Equity 42 312,915 239,855 49,175 ------ -------- -------- ------- TOTAL LIABILITIES AND MEMBER'S EQUITY $ 42 $279,662 $240,932 $50,762 ====== ======== ======== ======= RESOURCES CAPITAL MANAGEMENT CORPORATION CONSOLIDATING STATEMENT OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 2003 (THOUSANDS) INTERCOMPANY RCMC ELIMINATIONS CONSOL. & RECLASS. RCMC RCMCSC -------- ------------ ------- ------ REVENUES: Income from capital lease agreements $ 46,551 $ -- $24,655 $-- Investment gains (losses) -- -- -- -- Interest and dividend income 68 -- -- -- Operating Lease Income 1,517 -- 1,517 -- Other 302 -- 301 1 Equity in subsidiary earnings -- (11,692) 11,692 -- -------- -------- ------- --- Total revenues 48,438 (11,692) 38,165 1 -------- -------- ------- --- OPERATING EXPENSES: Operation and maintenance 334 -- 334 -- Depreciation and amortization 334 -- 334 -- Administrative and general 902 183 541 1 -------- -------- ------- --- Total operating expenses 1,570 183 1,209 1 -------- -------- ------- --- INCOME FROM EQUITY METHOD INVESTMENTS: Income from partnerships 144 -- -- -- -------- -------- ------- --- Total income from equity method investments 144 -- -- -- OPERATING INCOME 47,012 (11,875) 36,956 -- -------- -------- ------- --- OTHER INCOME Gain on extinguishment of debt -- -- -- -- -------- -------- ------- --- Total other income -- -- -- -- INTEREST EXPENSE: PSEG Capital Corporation -- -- -- -- Energy Holdings Inc. -- -- -- -- Other 9,928 760 9,168 -- Capitalized interest -- -- -- -- -------- -------- ------- --- Net interest expense 9,928 760 9,168 -- -------- -------- ------- --- INCOME BEFORE INCOME TAXES 37,084 (12,635) 27,788 -- -------- -------- ------- --- INCOME TAXES: Current (25,678) (330) (8,879) -- Deferred 41,457 -- 15,361 -- Investment and energy tax credits - net (469) -- (469) -- -------- -------- ------- --- Total income taxes 15,310 (330) 6,013 -- -------- -------- ------- --- MINORITY INTERESTS -- -- -- -- -------- -------- ------- --- NET INCOME $ 21,774 $(12,305) $21,775 $-- ======== ======== ======= === RCMC I, INC. DYNEGY RCMC, INC. CONSOL CONSOL ---------- ------------ -------- REVENUES: Income from capital lease agreements $ -- $3,970 $ 17,926 Investment gains (losses) -- -- -- Interest and dividend income 45 23 -- Operating Lease Income -- -- -- Other -- -- -- Equity in subsidiary earnings -- -- -- ----- ------ -------- Total revenues 45 3,993 17,926 ----- ------ -------- OPERATING EXPENSES: Operation and maintenance -- -- -- Depreciation and amortization -- -- -- Administrative and general 112 65 -- ----- ------ -------- Total operating expenses 112 65 -- ----- ------ -------- INCOME FROM EQUITY METHOD INVESTMENTS: Income from partnerships 144 -- -- ----- ------ -------- Total income from equity method investments 144 -- -- OPERATING INCOME 77 3,928 17,926 ----- ------ -------- OTHER INCOME Gain on extinguishment of debt -- -- -- ----- ------ -------- Total other income -- -- -- INTEREST EXPENSE: PSEG Capital Corporation -- -- -- Energy Holdings Inc. -- -- -- Other -- -- -- Capitalized interest -- -- -- ----- ------ -------- Net interest expense -- -- -- ----- ------ -------- INCOME BEFORE INCOME TAXES 77 3,928 17,926 ----- ------ -------- INCOME TAXES: Current 190 272 (16,931) Deferred (163) 1,117 25,142 Investment and energy tax credits - net -- -- -- ----- ------ -------- Total income taxes 27 1,389 8,211 ----- ------ -------- MINORITY INTERESTS -- -- -- ----- ------ -------- NET INCOME $ 50 $2,539 $ 9,715 ===== ====== ======== RESOURCES CAPITAL MANAGEMENT CORPORATION CONSOLIDATING STATEMENT OF RETAINED EARNINGS FOR THE YEAR ENDED DECEMBER 31, 2003 (THOUSANDS) INTERCOMPANY RCMC ELIMINATIONS RCMC I, INC. DYNEGY CONSOL. & RECLASS. RCMC RCMCSC RCMC, INC. CONSOL CONSOL -------- ------------ -------- ------ ---------- ------------ ------- BALANCE JANUARY 1, 2003 $183,731 $(46,752) $183,731 $(16) $4,188 $10,406 $32,174 NET INCOME 21,774 (12,305) 21,775 -- 50 2,539 9,715 -------- -------- -------- ---- ------ ------- ------- TOTAL 205,505 (59,057) 205,506 (16) 4,238 12,944 41,889 -------- -------- -------- ---- ------ ------- ------- DIVIDENDS DECLARED -- (294) -- -- -- 294 -- -------- -------- -------- ---- ------ ------- ------- BALANCE DECEMBER 31, 2003 $205,505 $(58,763) $205,506 $(16) $4,238 $12,650 $41,889 ======== ======== ======== ==== ====== ======= ======= RESOURCES CAPITAL MANAGEMENT CORPORATION CONSOLIDATING BALANCE SHEET AS OF DECEMBER 31, 2003 (THOUSANDS) INTERCOMPANY RCMC ELIMINATIONS RCMC I, INC. DYNEGY CONSOL. & RECLASS. RCMC RCMCSC RCMC, INC. CONSOL CONSOL -------- ------------ -------- ------ ---------- ------------ -------- ASSETS CURRENT ASSETS Cash and temporary cash investments $ 1,136 $ -- $ 84 $ 6 $ 609 $ 437 $ -- Accounts and Notes receivable: Trade -- -- -- -- -- -- -- Other 48 -- 48 -- -- -- -- PSE&G -- -- -- -- -- -- -- PSEG -- -- -- -- -- -- -- Other associated companies 67,413 -- 43,088 -- 5,636 1,759 16,930 Notes receivable: Associated companies -- -- -- -- -- -- -- Prepayments 930 -- 930 -- -- -- -- -------- --------- -------- --- ------ -------- -------- Total Current Assets 69,527 -- 44,150 6 6,245 2,196 16,930 -------- --------- -------- --- ------ -------- -------- PROPERTY, PLANT AND EQUIPMENT Real estate 28,467 -- 28,467 -- -- -- -- Other -- -- -- -- -- -- -- Accum. depr. and amortization (334) -- (334) -- -- -- -- Valuation allowances -- -- -- -- -- -- -- -------- --------- -------- --- ------ -------- -------- Property, Plant and Equipment-net 28,133 -- 28,133 -- -- -- -- -------- --------- -------- --- ------ -------- -------- INVESTMENTS Subsidiaries -- (220,938) 219,163 -- -- 1,775 -- Capital lease agreements 789,290 -- 408,855 -- -- 190,034 190,401 Partnership interests 1,732 -- -- -- 1,732 -- -- Corporate joint ventures -- -- -- -- -- -- -- Securities -- -- -- -- -- -- -- Valuation allowances -- -- -- -- -- -- -- -------- --------- -------- --- ------ -------- -------- Total Investments 791,022 (220,938) 628,018 -- 1,732 191,809 190,401 -------- --------- -------- --- ------ -------- -------- OTHER ASSETS Other -- -- -- -- -- -- -- -------- --------- -------- --- ------ -------- -------- Total Other Assets -- -- -- -- -- -- -- -------- --------- -------- --- ------ -------- -------- TOTAL ASSETS $888,682 $(220,938) $700,301 $ 6 $7,977 $194,005 $207,331 ======== ========= ======== === ====== ======== ======== RESOURCES CAPITAL MANAGEMENT CORPORATION CONSOLIDATING BALANCE SHEET AS OF DECEMBER 31, 2003 (THOUSANDS) INTERCOMPANY RCMC ELIMINATIONS RCMC I, INC. DYNEGY CONSOL. & RECLASS. RCMC RCMCSC RCMC, INC. CONSOL CONSOL -------- ------------ -------- ------ ---------- ------------ -------- LIABILITIES AND MEMBER'S EQUITY CURRENT LIABILITIES Accounts payable: Trade $ -- $ -- $ -- $ -- $ -- $ -- -- Taxes 209 -- 209 -- -- -- -- Other 97 2 95 -- -- -- -- Interest 89 -- 89 -- -- -- -- Associated companies 271 (7) -- 11 28 239 -- Notes payable: -- -- -- -- -- -- -- PSEG Capital Corporation -- -- -- -- -- -- -- Enterprise Capital Funding Corp. -- -- -- -- -- -- -- Enterprise Group Development Corp. -- -- -- -- -- -- -- Energy Holdings Inc. -- -- -- -- -- -- -- PSEG Resources 105,225 -- 105,225 -- -- -- -- Current portion of long-term debt 335 -- 335 -- -- -- -- -------- --------- -------- ---- ------ -------- -------- Total Current Liabilities 106,226 (5) 105,953 11 28 239 -- -------- --------- -------- ---- ------ -------- -------- TOTAL LONG-TERM DEBT 11,273 -- 11,273 -- -- -- -- -------- --------- -------- ---- ------ -------- -------- DEFERRED CREDITS Deferred income taxes 525,508 -- 337,398 -- 2,515 160,453 25,142 Deferred investment -- -- -- -- -- -- -- and energy tax credits -- -- -- -- -- -- -- Other -- -- -- -- -- -- -- -------- --------- -------- ---- ------ -------- -------- Total Deferred Credits 525,508 -- 337,398 -- 2,515 160,453 25,142 -------- --------- -------- ---- ------ -------- -------- MEMBER'S EQUITY Capital stock 2 (3) 2 1 1 1 -- Preferred stock -- -- -- -- -- -- -- Contributed capital 40,168 (162,167) 40,168 10 1,195 20,662 140,300 Retained earnings 205,505 (58,763) 205,506 (16) 4,238 12,650 41,889 -------- --------- -------- ---- ------ -------- -------- Total Stockholder's Equity 245,675 (220,933) 245,676 (5) 5,434 33,313 182,189 -------- --------- -------- ---- ------ -------- -------- TOTAL LIABILITIES AND MEMBER'S EQUITY $888,682 $(220,938) $700,301 $ 6 $7,977 $194,005 $207,331 ======== ========= ======== ==== ====== ======== ======== Exhibit B Organizational Chart - Response 4(b)(ix)(x)(xlv)(xlvi) PPN Energy, PPN Operations, Dhofar Power, Dhofar Generating ------------- Public Service Enterprise Group Incorporated (New Jersey) ------------- | | ------------- PSEG Energy Holdings L.L.C. (New Jersey) ------------- | | ------------- PSEG Global L.L.C. (New Jersey) ------------- | | -------------------------------------------------------------- | | | | ------------ ------------- PSEG India PSEG Global Company International (Cayman) Holdings LLC ------------ (Delaware) | ------------- | | ------------ | PSEG EAMS ------------- Ltd. PSEG (Mauritius) Americas Ltd. (Bermuda) ------------ ------------- | | |------------------ ------------- | | | ------------ ----------------- -------------- PSEG PSEG PSEG Salalah PPN Energy Operations Inc. Company Ltd. Ltd. (Delaware) (Mauritius) ( Mauritius) -------------- ------------ ----------------- | | | -------------- | Salalah 100% (A) Power | Holdings, Ltd. ----------------- (Bermuda) PSEG PPN -------------- Operations | Private | Limited -------------- ----------------- Dhofar Power Company SAOC (Oman) -------------- | 99.9996% | -------------- Dhofar Generating Company SAOC (Oman) -------------- Exhibit B Organization Chart - Response 4(b)(i)(ii)(iii)(xix)(xxi)(xxii)(xlvii)(xlviii)(xlix)(1) CUPPI, ZHL, TCP, Rongjiang, Meiya Electric Asia, SWGEC, Meiya (Tao Yuan), FWIL, HUANGSHI, MQPCL --------------- PSEG Global Inc. (New Jersey) --------------- | | 100% | | --------------- PSEG Global International Holdings LLC (Delaware) --------------- | | 100% | | --------------- PSEG Americas Ltd. (Bermuda) --------------- | | 100% | | --------------- PSEG China Inc. (Delaware) --------------- | | 50% | | --------------- Meiya Power Company Limited (Bermuda) --------------- | | 100% | | ----------------------------------------------------------------------------------------------------------------- | | | | | | | | | | | | | | | | |