1. Public Service Enterprise Group
Merrill Lynch
Power & Gas Leaders Conference
New York City
September 25, 2007

2. Forward-Looking Statement
The statements contained in this communication about our and our
subsidiaries’ future performance, including, without limitation, future
revenues, earnings, strategies, prospects and all other statements that
are not purely historical, are forward-looking statements for purposes of
the safe harbor provisions under The Private Securities Litigation
Reform Act of 1995. Although we believe that our expectations are
based on information currently available and on reasonable
assumptions, we can give no assurance they will be achieved. There
are a number of risks and uncertainties that could cause actual results to
differ materially from the forward-looking statements made herein. A
discussion of some of these risks and uncertainties is contained in our
Annual Report on Form 10-K and subsequent reports on Form 10-Q and
Form 8-K filed with the Securities and Exchange Commission (SEC),
and available on our website: http://www.pseg.com. These documents
address in further detail our business, industry issues and other factors
that could cause actual results to differ materially from those indicated in
this communication. In addition, any forward-looking statements included
herein represent our estimates only as of today and should not be relied
upon as representing our estimates as of any subsequent date. While
we may elect to update forward-looking statements from time to time, we
specifically disclaim any obligation to do so, even if our estimates
change, unless otherwise required by applicable securities laws.
1

3. GAAP Disclaimer
PSEG presents Operating Earnings in addition to its Net Income reported
in accordance with accounting principles generally accepted in the United
States (GAAP). Operating Earnings is a non-GAAP financial measure that
differs from Net Income because it excludes the impact of the sale of
certain non-core domestic and international assets and costs stemming
from the terminated merger agreement with Exelon Corporation. PSEG
presents Operating Earnings because management believes that it is
appropriate for investors to consider results excluding these items in
addition to the results reported in accordance with GAAP. PSEG believes
that the non-GAAP financial measure of Operating Earnings provides a
consistent and comparable measure of performance of its businesses to
help shareholders understand performance trends. This information is
not intended to be viewed as an alternative to GAAP information. The last
slide in this presentation includes a list of items excluded from Net Income
to reconcile to Operating Earnings, with a reference to that slide included
on each of the slides where the non-GAAP information appears. These
slides are only intended to be reviewed in conjunction with the oral
presentation to which they relate.
2

4. PSEG Strategic Overview
Ralph Izzo
Chairman of the Board, President and
Chief Executive Officer

5. PSEG Overview
2007E Operating Earnings(4): $1,245M - $1,370M
2007 EPS Guidance(4): $4.90 - $5.30
Assets (as of 06/30/07): $28.5B
Market Capitalization (as of 9/18/07): $22.25B
Regional
Traditional T&D
Wholesale Energy
Electric Customers: 2.1M Nuclear Capacity: 3,500 MW Domestic/Int’l Leveraged
Gas Customers: 1.7M Total Capacity: 13,600 MW Energy Leases
2006 Operating Earnings: $262M(1) $515M(2) $227M(3)
2007 Guidance: $340M - $360M $840M - $920M $120M - $135M
Operating Earnings = Earnings Available and Excludes:
(1) Merger Costs of $1M
(2) Loss from Discontinued Operations of $239M
(3) Loss on Sale of RGE of $178M and Income from Discontinued Operations of $226M
Includes Operating Earnings from Global of $167M, Resources of $63M and Energy Holdings of $(3)M
4
(4) Includes the parent impact of $(55)M –$(45)M

6. PSEG over the past year …
• Smooth transition in operations
– Management in place
– PSEG Power to resume independent operation of nuclear capacity by
year-end
– PSE&G national ReliabilityOne Award winner, two years running
• Partnering with NJ to meet environmental objectives in cost effective
manner
– Investing in energy efficiency
– Investing in renewable energy resources
• Redeploying capital at PSEG Energy Holdings
• Balance sheet strengthened
… has positioned itself to be ready for the future.
5

7. The current business environment …
• Convergence of market forces and policy creates
the need to address:
– Environmental challenges
• A carbon constrained future
– Critical infrastructure needs
• Reliability and aging plant
– Capacity requirements in constrained markets
… creates opportunities for PSEG’s long-term growth.
6

8. Climate change is the preeminent issue of our time …
• The issue cuts across the PSEG group of companies
• Three critical strategies are required to meet carbon
reduction goals:
• Conservation
• Renewables
• Clean, zero and low-carbon central station electric
generating capacity
… with our response defining the future of the company.
7

9. Business as usual GHG emissions increase…
U.S. GHG Emissions 2004 – 2030
9,000
8,000 34% Increase in CO2
emissions by 2030
7,000
Residential
Million Metric Tons CO2-e
6,000 Commercial
Industrial
The Energy Information
34
5,000 Administration projects a 34% Transportation
increase in CO2 emissions from
Electric Power
2004 levels in the business as
4,000
Total
usual case (no climate policy)
3,000
2,000
1,000
0
2027
2028
2029
2030
2026
2025
2004
2005
2006
2007
2009
2010
2011
2012
2013
2014
2015
2016
2018
2019
2020
2021
2022
2023
2024
2008
2017
… to unacceptably high levels based upon recent findings
of the Intergovernmental Panel on climate change. 8
GHG: Greenhouse Gas

10. EPRI has assessed reduction opportunities in the US
Power sector, …
… carefully noting that a multifaceted approach is needed.
Source: Electric Power Research Institute (EPRI): Electric Technology in a Carbon Constrained Future
CCS: Carbon Capture and Sequestration
PHEV: Plug-in Hybrid Electric Vehicles 9
DER: Distributed Energy Resource

11. States are not waiting for federal action …
Western Regional
Regional Greenhouse
Powering the Plains
Climate Action Initiative
Gas Initiative
• RPS
• standards
(plus
California
VT (goal),
motor vehicle
MA, RI, CT,
CO2 emissions
NJ, DE,
Climate
States
standards (plus
MD, DC)
developing Action Plans
VT, MA, RI, CT,
NJ, ME) greenhouse (includes all states
in regional programs
gas registries
except N & S Dakota)
… with NE and California leading the way to cap greenhouse
gas emissions.
10
RPS: Renewable Portfolio Standard

12. Twenty-two states have Renewable Portfolio Standards …
U.S. RPS Requirements by Region
Planned Renewable Generation
2006 - 2015
Share of US
power demand
5% 14
Northwest Waste Coal*
Rockies
12
Other
4% 0.6
10
Solar
Capacity (GW)
California
Southwest
3% 8 Water
Midwest
Wind
6 0.5
2% 10.7
Texas
0.9
4
Mid-Atlantic
0.6
0.5
5.6
1%
2
New York
2.7 0.4
2.4
1.0
New England
-
0%
2006 2007 2008 2009 2010 2011
2004 2006 2008 2010 2012 2014
Year Online
* Waste coal meets Pennsylvania renewable standards
Source: GE Energy Financial Services
Source: Platts NewGen, December 2006
… and developers are responding to these Standards.
11

13. Regional Greenhouse Gas Initiative (RGGI) for the power
sector is real …
• Agreement between 10 northeast states to cap CO2
emissions from power plants
• Emissions capped at 2000-2004 baseline levels in 2009
- NJ cap = 22.9 million tons
• Reduce CO2 emissions by a total of 10% during 2015 –
2018
• Allowance distribution methodology, “Leakage”, and
harmonizing with a national program are major concerns
• NJ RGGI legislation and regulations are planned for Nov
2007
… and on schedule to go into effect January 1, 2009.
12

14. A key element of any Cap and Trade approach is the
allowance distribution methodology.
• Different approaches have been debated:
– Grandfathered (Historical)
– Updated
– Input
– Output
– Auction
• RGGI states are going down path of 100% auction
The price of the credits, however, is independent of the
allocation method and determined primarily by the level of
the CO2 cap. 13

15. Leakage needs to be addressed …
6,000,000 (6,000,000)
Leakage - Emissions Increases at Out of State Plants Caused by RGGI
NJ Emissions Reduced Caused by RGGI
5,000,000 (5,000,000)
NJ Emission Reductions (tons of CO2)
Leakage Emissions (tons of CO2)
4,000,000 (4,000,000)
RGGI Will Result in
3,000,000 (3,000,000)
a Net Increase in
CO2 Emissions
2,000,000 (2,000,000)
1,000,000 (1,000,000)
- -
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Based on RGGI State Workgroup data, RGGI results in a net increase in emissions when comparing the RGGI Reference
Case versus RGGI Package Case 10/2006 Model Runs. Leakage offsets any benefits of the RGGI program for NJ.
… or RGGI states risk increased consumer costs AND
increased CO2 emissions. 14

16. New Jersey climate initiatives …
• Energy Master Plan – No explicit CO2 target, but:
– 20% energy efficiency by 2020
– Calls for 20% renewables by 2020
• NJ Global Warming Response Act:
– Stabilization of economy-wide greenhouse gas emissions at
1990 levels by 2020.
– Reduction of economy-wide greenhouse gas emissions to 80%
below 2006 levels by 2050.
– Establishes emissions portfolio standard for suppliers of power
into NJ
… present numerous opportunities for PSE&G and PSEG
Power. 15

17. New Jersey emissions differ significantly from national
norms…
250
Business as Usual
200
GHG Emissions. Millions of Tons
150
1990 Level
17.7%
46.1%
100
15.1%
Transportation
Residential
50 21.1%
Industrial
Note: 2006 Emissions from transportation 80% Below 2006 Level
Commercial
sector, and electric power generation
attributed to end user
-
1990 1994 1998 2002 2006 2010 2014 2018 2022 2026 2030 2034 2038 2042 2046 2050
… with a large contribution from the transportation sector.
16

18. PSE&G has proposed a 3-pronged approach to help meet
State targets …
… with energy efficiency as the top priority.
17
Source: Global Energy Partners, LLC

19. NJ greenhouse gas emissions and goals …
200
Business as Usual
180
PSEG Reductions
160 Energy Master
Plan Goal
140 NJ Global Warming
Response Act
(1990 levels by
PSEG Conceptual Reductions
120
2020)
185
BAU
100 Annual tons of CO2 Reductions in 2020
180
Energy Efficiency (4.75 MM tons)
175 13.3
80 Solar Program (0.32 MM tons)
170
New Nuclear Plant (8.2 MM tons)
PSEG
165
60
160
40 155
150
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
20
-
1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020
… represent a formidable challenge to achieve in the
absence of additional nuclear power.
18

20. CO2 Emission Rate (lbs/MWh)
0
500
1,000
1,500
2,000
2,500
Goldman Sachs
ArcLight
Reliant Resources
Edison International
restrictions.
NRG
Allegheny Energy Inc
Mirant Corp
WPS Resources Corp.
DPL Inc
Cinergy Corp
Buckeye Power Inc
Pepco Holdings, Inc
AEP
industry to reduce CO2 emissions.
AES Corp
2004 Emission Rate Ranking
Old Dominion Elec. Coop
Dominion
(24 largest Generating Companies in PJM)
PPL Corp
Constellation
International Paper Co
Calpine Corp
FPL Group, Inc
PSEG’s generation carbon intensity is lower than many
PSEG
competitors and benefits from virtually any form of carbon
Cogen Technologies
Policymakers are looking to Cap and Trade for the power
Exelon Corporation
19

21. The potential impact of CO2 on PSEG Power…
By Fuel Type
Coal CTs CC
Carbon tons/MWh 1.0 0.6 0.4
Price ($/MWh)
PSEG Power Generation by Fuel
@$5 $5.0 $3.0 $2.0
Total GWh: 53,617
@$10 $10.0 $6.0 $4.0
@$30 $30.0 $18.0 $12.0 Nuclear
55% Pumped
Dispatch curve implication @ $10/ton*
Storage
On margin $/MWh Impact 1%
(approximate) 16%
Gas
Coal 50% $10.0 $5.00 27%
CTs 10% $6.0 $0.60
Oil 1%
Gas CC 40% $4.0 $1.60
Coal
Nuclear 0% $0.0 $0.00
Total 100% $7.20
… is mitigated by a low-carbon generation portfolio.
* For illustration purposes – potential impact of CO2 on power prices with current dispatch – not an indication of net effect on income.
20

22. PSE&G – Responding to environmental challenges …
• Conservation through energy efficiency improvements
and investment in hybrids, electric-drive bucket trucks
and alternative fuels will cut carbon emissions by
140,000 tons over 10 years
• Proposed investing $100 million in solar initiative that
would meet 30 MW (50%) of renewable requirements
over 2009-2010
• Advocating for direct investment by utilities in
customer efficiency programs
– Most cost effective means of meeting State goals
… and playing a key role in designing programs to meet
State goals.
21

23. Summary
• States are not waiting for federal government to take action on
climate issues
• Key policy focus on electric sector is:
– Energy efficiency
– Renewables
– New nuclear
– Carbon capture/storage
• PSEG is well positioned:
– Generating fleet less carbon intensive than many competitors
– Policymakers need utility patient capital for investments in energy
efficiency and renewables
– With a carbon constrained future, PSEG’s Salem/Hope Creek a
good location for new nuclear in latter part of next decade
22

24. PSEG – Meeting commitments
• Results on track to meet earnings guidance
• Meeting commitment to system reliability with major expansion of
transmission system
• Addressing NJ’s clean energy commitments
– Solar initiative
– PSE&G to use more energy efficient equipment and vehicles
• Focus on core businesses
– Transmission investment
– Hudson environmental commitment
– Electroandes sale
• Meeting our balance sheet goals
– S&P outlook revised to stable; commercial paper ratings upgraded
23

25. Strong earnings growth in 2007 and 2008 …
Operating Earnings by Subsidiary 15%
$5.60 - $6.10
37%
$4.90 - $5.30
$3.77* $3.71**
840-920
Power 446 515
PSE&G 347 262
340-360
Holdings 227
196
120-135
≈0
(71) (55)-(45)
(66)
Parent
2005 2006 2007E 2008E
… with reduced international risk.
* 2005, as reported: Excludes ($0.14) Merger Costs, ($0.07) Cumulative Effect of an Accounting Change and ($0.85) Discontinued Operations
24
** 2006, as reported: Excludes ($0.03) Merger Costs, ($0.70) Loss on Sale of RGE, and ($0.05) Discontinued Operations

26. Improved earnings causes our dividend payout ratio to
decline below 50% ...
$2.60 70
Payout
65
Ratio
$2.50
Dividend Payout Ratio (%)
?
Dividend per Share
60
$2.40
$2.34 *
55
$2.28
$2.30
$2.24 50
$2.20
$2.20
45
$2.10 40
$2.00 35
2004 2005 2006 2007 2008
*Indicated annual dividend rate
… providing us the flexibility to raise our dividend above
recent levels.
25

27. Creating shareholder value for the long-term …
Total Comparative Returns
(8/31/97 – 8/31/07)
500
400
Total Returns (%)
300
200
100
0
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
PEG S&P Electrics
… has been and will continue to be our focus.
26

28. Public Service Enterprise Group

29. APPENDIX

30. PSEG Power – Solidly positioned …
• Nuclear and fossil fleet operating at historically high
levels with opportunity for incremental improvement
• Near-term growth fueled by strong markets and roll-off
of below market contracts
• Long-term growth influenced by:
– Tightening reserve margins
– Expansion capability at existing sites
– Carbon advantaged portfolio
• Debate on energy policy will influence investment
– Environmental compliance driving current investment
– New nuclear capacity represents a partial solution to carbon
reduction goals
… to provide strong growth for PSEG.
29

31. Power’s assets reflect a diverse blend of fuels and
technologies …
Fuel Diversity – 2007
• Low-cost portfolio
Total MW: 13,600
• Strong cash generator Oil Nuclear
8%
• Regional focus with demonstrated 26 %
Pumped
BGS success Storage
1%
18%
47 %
• Assets favorably located
Coal
Gas
– Many units east of PJM constraint
– Southern NEPOOL/ Connecticut
constraint Energy Produced - 2006
Total GWh: 53,617
– Near customers/load centers
Nuclear
• Integrated generation and portfolio
management optimizes asset- 55% Pumped
Storage
based revenues 1%
16%
Gas
27%
Oil 1%
Coal
… which provides for risk mitigation and strong returns.
30

32. Power’s assets are located in attractive markets near load
centers …
Current plant locations,
site expansion capability
Bethlehem Energy Center
(Albany)
System Interface
New Haven
Hudson Bridgeport
Keystone
Bergen
Kearny
Conemaugh Mercer Essex
Linden
Peach Bottom Sewaren
Edison
Hope Creek
Burlington
Salem
National Park
... which experience higher prices during periods of high demand.
31

33. Our environmental response…
Emissions Control Technology Projects
Hudson Unit 2 (608 MW) Mercer (648 MW) – Units 1&2
- NOx control – SCR - NOx control – SCR installation complete
- SO2 control – Scrubber - SO2 control – Scrubbers
- Hg and particulate matter control - - Hg and particulate matter control –
Baghouse Baghouse
Environmental Capital Requirements
• Power’s New Jersey coal units are
2007 – 2010
Completion
mid-merit, with capacity factors
Total
Date
($ million) averaging 50% to 60%
• As markets tighten, increased
Hudson Unit
$700 - $750 2010
production is anticipated
2
$490 2010
Mercer
… will help preserve the availability of our fossil fleet.
32

34. Long-term market prices …
$/mmbtu
$/MWh
$70 $ 12
Natural Gas Henry Hub
(right scale)
PJM Western Hub RTC
$6 0
$9
Electricity
(left scale)
$50
$6
$4 0 Coal(1)
(right
scale)
$3
$3 0
$2 0 $0
2002 2003 2004 2005 2006 2007 2008 2009
Es t Fwd Fwd
(2) (2) (2)
(1) Central Appalachian coal
(2) Forward prices as of August 20, 2007
… influenced by market dynamics. 33

35. RPM Capacity Auction – Transparent Pricing Model
• PJM released results on July 13 from its second capacity auction under the Reliability
Pricing Model (RPM) for the 2008-2009 delivery year.
2007- 2009 Capacity Auction Results
Unit Price Load Price CTR Value*
2007/ 2008/ 2007/ 2008/ 2007/ 2008/
($/MW-day) 2008 2009 2008 2009 2008 2009
Eastern MAAC $197.67 $148.80 $177.51 $143.51 $20.16 $5.29
Southwest MAAC $188.54 $210.11 $140.16 $180.58 $48.38 $29.53
Rest of Pool $40.80 $111.92 N/A N/A N/A N/A
• Auctions scheduled in the next six months provide transition through the 2010-2011
delivery year.
Planning Year
Auction Date
(6/1 to 5/31)
2009 – 2010 October 2007
2010 – 2011 January 2008
2011 – 2012 May 2008
Annual base auction in May of each subsequent year
• Future auction pricing to be influenced by increase in number of zones (2010 – 2011
delivery year), load growth, avoided cost for units, and capacity available (unit capability,
retirements, new build).
34
* CTR Value: Capacity Transfer Rights
Allocated to Load Serving Entities (LSE) in constrained zones to provide them with access to supply from outside the zone

36. Capacity Position
• Only a portion of PSEG Power’s capacity was open to realize prices in
the recent PJM-RPM auctions. Increasing amounts are open to realize
prices in future years.
• A significant percent of Power’s capacity was contracted as part of
New Jersey’s 3-year BGS* auction (Power currently serving 11
tranches from the 2005 auction, 20 tranches from 2006 and 19
tranches from 2007), as well as other contracting activity.
• The balance of Power’s PJM capacity has obtained price certainty
through May 31, 2009 from the first two RPM auctions.
• All of Power’s New England capacity has obtained price certainty
through May 31, 2010 as a result of the fixed price nature of the
transitional FCM auction.
• Existing capacity hedges support our forecast year-over-year
improvement in capacity margin for 2007 of $125 - $175 million with
similar improvement in 2008.
35
* Delivery year runs from June 1 – May 31

37. Power’s hedging strategy aims to balance stable
earnings …
PJM RTC GWh
6,000
5,000
4,000
GWh
3,000
2,000
1,000
-
2007 2008
2 0 02 0 0 2 0 02 0 0 2 0 02 0 0 2 0 02 0 02 0 0 2 0 02 0 0 2 0 02 0 0 2 0 02 0 02 0 0 2 0 02 0 0 2 0 02 0 0 2 0 02 0 02 0 0 2 0 02 0 0 2 0 02 0 02 0 0 2 0 02 0 0 2 0 02 0 0 2 0 02 0 02 0 0 2 0 0 2 0 10 0 10 0 10 0 10 0 10 0 10 0 10 0 10 0 10 0 10 0 10 0 10
7 7 7 7 7 7 7 7 7 7 7 7 8 8 8 8 8 8 8 8 8 8 8 8 9 9 9 9 9 9 9 9 9 9 9 9 2 2 2 2 2 2 2 2 2 2 2
2009 2010
Nuclear / Pumped Storage Coal CC
Steam / CT Existing Load + Hedges + Future BGS Existing Load + Hedges
Existing Hedges
2007 2008 2009 2010
Percent of Power’s coal and nuclear energy output ~100% ~100% ~50% ~10%
hedged (total portfolio)*
… while preserving market growth opportunities.
36
*As of August 2007

38. Power’s hedging of coal and nuclear fuel …
Coal and Nuclear Output Coal and Nuclear Fuel
50,000 50,000
Gas supply secured
based on sales of output
MWhr equivalent (000's)
40,000 40,000
MWhr (000's)
30,000 30,000
20,000 20,000
10,000 10,000
- -
2007 2008 2009 2010 2007 2008 2009 2010
Year
Year
Nuclear and Coal output Contracted sales Coal Uranium Contracted sales
Power has contracted for 100% of its nuclear uranium fuel through 2011 and
approximately 90% of its coal needs through 2009.
… is aligned with its low-cost generating output and our
hedging strategies. 37

39. Power’s fleet diversity and location ...
Market Perspective – BGS Auction Results
Increase in Full Requirements Component Due to:
$102 Full Requirements
$99
Increased Congestion (East/West Basis)
• Capacity
Increase in Capacity Markets/RPM
• Load shape
Volatility in Market Increases Risk Premium
~ $32 ~ $41 • Transmission
• Congestion
$66
• Ancillary services
$55 $55 • Risk premium
~ $21
~ $18
~ $21
Round the Clock
$58-$60
$67 - $70 PJM West
$44 - $46
$36 - $37
$33 - $34
Forward Energy
Price
2003 Auction 2004 Auction 2005 Auction 2006 Auction 2007 Auction
… has enabled successful participation in each BGS auction.
38

40. Operational improvements and recontracting in
current markets …
Realized Gross Margin ($/MWh)
$70
$60
$50
$40
$30
$20
$10
$0
2005 2006 2007 Est 2008 Est 2009 Est
Energy Capacity
… are expected to drive significant increases in Power’s
gross margin.
39
*Presented at March 26, 2007Financial Conference

41. PSE&G – A consistent, strong performer …
• Regulatory agreements provide opportunity to earn
reasonable returns over 2007-2009
• Investment in transmission fuels long-term growth
– Energy Master Plan (EMP) initiatives provide a secondary
source of growth
• Continued top quartile/top decile performance
– National ReliabilityOne Award winner – two years running
– American Customer Satisfaction Index (ACSI) Customer
Satisfaction Survey
… providing financial stability and multiple platforms for growth.
40

42. PSE&G’s base investment plan …
• Regulated electric transmission, electric and gas distribution system
• Characteristics
• FERC regulation for electric transmission; NJ BPU regulation for electric
and gas distribution
• Electric and Gas distribution rates frozen through November 2009
PSE&G Rate Base
2011 Base Plan
2006 Actual
Rate Base = $8.7 B
Rate Base = $6.5 B Gas
Distribution
Gas
31%
Electric
Distribution
Transmission Electric
34%
12%
Transmission
22%
Electric
Distribution
54%
Electric
Distribution
Equity Ratio ~ 48% 47%
… coupled with fair regulatory treatment provides a solid base
for future earnings growth.
41

43. PSEG Energy Holdings - Reducing risk …
• Diverse asset base with improved stability and growing markets
– Latin American distribution assets in stable economies
– Gas-fired combined cycle generation in Texas
• A source of capital
– Asset sales have reduced risk and contributed to an improved
balance sheet at PSEG
– Agreement reached to sell Electroandes
– Exploring potential sale of Chilquinta and Luz del Sur
• A source of growth
– Texas generating assets benefit from location, low cost structure
and opportunity for expansion
– Returned $150M from SAESA financing
… with redeployment of capital.
42

44. Improved risk profile by reducing capital invested in
non-strategic assets …
Global’s Invested Capital Composition of Global’s Pre-tax
Contribution by Region*
$2.6B
$317M**
4%
$13
$2.0B
Other $900M 35%
$1.9B
$150M 7% $129 41%
$150M 7% $195M** $180M-$200M**
$1.6B
26%
$100M 7% Other $50
63%
$1.4B
hile & $1.3 B
50% 68%
Peru $1.3B 67% $1B 63% Chile & 55%
53%
$104 $175
Peru
39%
21%
US $41
-2%
$500M 25% $500M 26% $500M 30% $(22)
$(35)
G&A
$400M 15%
US $(40)
2007
2004 2006
Projected
12/31/07
2004 06/30/07
2006
Projected
… while increasing returns and sharpening focus on G&A.
*Includes both consolidated and unconsolidated investments after project debt, before allocation of parent debt
43
**Excludes interest, taxes, G&A and other corporate items to arrive at Global’s Operating Earnings, includes Electroandes

45. Strong operations and markets …
Six months ended June 30,
Operating Earnings Per Share
$ Millions (except EPS)
2007 2006 2007 2006
PSE&G $ 193 $ 111 $ 0.76 $ 0.44
PSEG Power 406 208 1.60 0.82
PSEG Energy Holdings 61 95 0.24 0.38
Enterprise (33) (32) (0.13) (0.12)
PSEG $ 627 $ 382 $ 2.47 $ 1.52
… supported first-half EPS growth of 63%.
44
* See page 51 for Items excluded from Net Income to reconcile to Operating Earnings

46. The capital program has been expanded …
2007 2008 2009 2010 2011 TOTAL
Capital Spending Update ($ Millions)
PSE&G $616 $803 $765 $919 $971 $4,074
PSEG Power* 655 816 580 441 176 2,668
PSEG Energy Holdings 38 31 40 30 31 170
Parent 34 31 23 24 23 135
TOTAL $1,343 $1,681 $1,408 $1,414 $1,201 $7,047
Change from 2006 10-K
PSE&G $11 $175 $134 $359 $396 $1,075
PSEG Power* 71 190 64 (86) (22) 217
PSEG Energy Holdings 1 - - - - 1
Parent (1) 3 (1) - 1 2
TOTAL $82 $368 $197 $273 $375 $1,295
… to support reliability, environmental commitments and growth.
45
* Figures for PSEG Power exclude Nuclear Fuel

47. Liquidity is available with favorable terms and
conditions …
Available
Expiration Total Liquidity
Company Facility Date Facility 6/30/07
($ Millions)
PSEG 5-year Credit Facility Dec-11 $ 1,000 $ 949
PSE&G 5-year Credit Facility Jun-11 600 330
Energy Holdings 5-year Credit Facility Jun-10 150 135
Power 5-year Credit Facility Dec-11 1,600 1,402
Bilateral Credit Facility Mar-10 100 46
Bilateral Credit Facility Mar-08 200 200
Total $ 3,650 $ 3,062
… thereby supporting our credit profile.
46

48. Our forecasted cash flows remain intact…
• We remain comfortable with a forecast
improvement in cash
- Operating income in line with expectations
- Electroandes sale to close in October
- Planned rate mechanisms for transmission
investments would provide cash recovery during
construction
• Excess cash between $1.5 billion and $2.0 billion
should be available through 2011
… with excess cash expected to be used to retire debt through
first half of 2008, thereafter for incremental growth and/or
share repurchase. 47

49. PSEG – Excellent position for today …
Right set of assets…
• Large, diverse mix of low-cost, base-load, load-following generating assets
• Reliable electric and gas distribution and transmission systems
• Stable portfolio of investments in domestic generation, international distribution and leases
Right markets…
• Generation assets operate in tightly constrained and growing markets
• Nuclear and coal base-load capacity operate in markets where the price for power is set by
gas
• Transmission and distribution assets provide service in a modest growth market with
reasonable regulation
At the right time…
• Mid-Atlantic, New England and Texas recognizing the value of capacity in constrained areas
• A move to control carbon benefits our nuclear-based fleet
• Power has opportunity for brownfield development at existing sites
• Values are improving for international assets
• T&D set to benefit from capital investment for new infrastructure
… ready for tomorrow 48

50. Public Service Enterprise Group dedicated to …
• Meeting commitments
– Earnings on track to meet guidance
– System reliability enhanced with expansion of transmission system
• Turning challenges into opportunities
– Addressing NJ’s Clean Energy goals
• Solar initiative
• PSE&G to use more energy efficient equipment and vehicles
• NJ support for emissions portfolio standard
• Building foundation for growth
– Monetizing non-core assets
– Meeting targets for debt reduction
– Capital program expanded
… operational excellence, financial strength and disciplined
investment. 49

51. Why invest in PSEG?
• Growing and visible stream of earnings
– Hedging and RPM
– Regulated utility operations
Earnings Per
P/E
Share*
• Strong balance sheet
2007E 2008E 2007E 2008E Yield %
PSEG $5.10 $5.85 16.4 14.3 2.8%
• Cash available for growth Merrill Lynch $3.03 $3.40 16.8 14.9 3.1%
Index**
• Competitive dividend yield
• Opportunities to invest in markets we know
… And, we still sell at a discount!
*Mid-point of guidance range
Priced as of August 27, 2007
50
**Merrill Lynch Index of Less-Regulated Utilities

52. New Officers
Izzo – PSEG -
Chairman,
President & CEO
O’Flynn – PSEG - EVP/ Selover – PSEG
Levis – PSEG Power - LaRossa – PSE&G Simpson – PSEG Svcs
CFO, PSEG Holdings - Svcs - EVP & Gen
President, CNO, COO – President & COO - President & COO
President Counsel
Joyce – SVP Byrd – SVP Finance,
Falck – SVP
Operations – Business Development
Latka Moran Paszynsky
Law
Salem/Hope Creek & Strategy / M&A
Barnes – Site VP –
Dickens MacDonald Kahrer Pego
McAuliffe
Hope Creek
Fricker – VP –
Cardenas DiRisio Jennings Hallerdin
Leyden
Operations Support
Braun – Site VP -
Forline Krueger Quinn
Seabrook Bonnifield
Salem
Quinn Lark Metzger VP – M&A McLaughlin
Black
Wohlfarth Sundheim Cregg Plawner Svenson
Linde
Frank – VP
DePillo Brooks Smith Supply Chain
Lally – VP –
Investor Relations
Lopriore – President Hoskins – VP – Chouthai
– PSEG Fossil Fed Affairs &Policy
Thigpen – VP –
Ameo McGrath State Gov Affairs
VP Fossil
Garcez
Ops
KEY:
Pastor New Officers Matos
51

53. Items excluded from Net Income to reconcile to Operating Earnings
Impact to PSEG EPS
$ Millions (except EPS) Quarter Ended June 30, Six Months Ended June 30, Quarter Ended June 30, Six Months Ended June 30,
2007 2006 2007 2006 2007 2006 2007 2006
Merger related Costs:
$ - $ (1) $ - $ (1)
PSE&G
- (1) - (2)
Power
- (1) - (5)
Enterprise
$ - $ (3) $ - $ (8) $ - $ (0.01) $ - $ (0.03)
Total Merger Related Costs
Loss on sale of RGE (Holdings) $ - $ (177) $ - $ (177) $ - $ (0.70) $ - $ (0.70)
Discontinued Operations:
$ (3) $ (8) $ (9) $ (17) $ (0.02) $ (0.03) $ (0.04) $ (0.07)
Power - Lawrenceburg
Holdings:
$ - $ 223 $ - $ 227
Elcho and Skawina
(15) 2 (14) 5
Electroandes
$ (15) $ 225 $ (14) $ 232 $ (0.05) $ 0.89 $ (0.05) $ 0.92
Total Holdings
$ (18) $ 217 $ (23) $ 215 $ (0.07) $ 0.86 $ (0.09) $ 0.85
Total Discontinued Operations
Please see Slide 2 for an explanation of PSEG’s use of Operating Earnings as a non-GAAP financial measure and how
it differs from Net Income.
52