PSEG to Correct Accounting Error

Newark, N.J., utility giant says its PSEG Holding unit misclassified senior notes.
Stephen TaubJuly 30, 2007

Public Service Enterprise Group Inc. said it will restate its first quarter financial statements due to an accounting error at one of its wholly owned subsidiaries.

The Newark, N.J.-based utility giant said the unit, PSEG Energy Holdings, determined that $207 million of its senior notes due in February 2008 had been erroneously classified as long-term debt instead of “long term debt due within one year” on its balance sheet of March 31.

The company assured that the error had no effect on Energy Holdings’ results of operations, cash flows or margins. It added that management and the PSEG audit committee have discussed the matter with Deloitte & Touche LLP, its independent accounting firm.

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PSEG said it would restate its balance sheet for the March quarter even though the effect of the error was not material, and that the amended quarterly report for the three-month period would be filed “as soon as practicable.”