July 11, 2002



                PEG RESPONDS TO TURMOIL IN ENERGY EQUITY MARKETS


     There  are  apparent  market  concerns  about  significant  effects  on the
earnings prospects of merchant energy companies due to recent disruptions in the
energy trading  markets.  In response to this,  Public Service  Enterprise Group
[NYSE:  PEG] today said that,  excluding  certain one-time  charges,  it expects
these  disruptions and other factors to cause at most a 5% reduction in its 2002
earnings per share guidance.

     The one-time  charges are largely  consistent  with  estimates  provided in
PEG's first-quarter 10Q filed with the Securities and Exchange Commission.

     Details will be provided  when PEG  announces  second-quarter  results in a
news release previously scheduled for issuance at 8:30 a.m. next Wednesday.


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