8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) November 1, 2007

PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED
(Exact name of registrant as specified in its charter)

New Jersey	001-09120	22-2625848
(State or other jurisdiction of incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)

80 Park Plaza, P.O. Box 1171

Newark, New Jersey 07101-1171

(Address of principal executive offices) (Zip Code)

973-430-7000

(Registrant’s telephone number, including area code)

http://www.pseg.com

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02 Results of Operations and Financial Condition

          On November 1, 2007, Public Service Enterprise Group Incorporated (PSEG) announced unaudited financial results for the quarter and nine months ended September 30, 2007. A copy of the earnings release and related slideshow presentation dated November 1, 2007 are furnished as Exhibits 99 and 99.1 to this Form 8-K. The information contained in this report is being furnished pursuant to Item 2.02 as directed by the U.S. Securities and Exchange Commission.

Item 9.01 Financial Statements and Exhibits

Exhibit 99	Press Release dated November 1, 2007 announcing third quarter 2007 results
Exhibit 99.1	Slideshow Presentation

2

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. The signature of the undersigned company shall be deemed to relate only to matters having reference to such company and any subsidiaries thereof.

	PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED (Registrant)
By:	/s/ Derek M. DiRisio
	Derek M. DiRisio
	Vice President and Controller
	(Principal Accounting Officer)

Date: November 1, 2007

3

EX-99

Exhibit 99

	Investor News	NYSE:PEG
For further information, contact:
Ø      Kathleen A. Lally, Vice President – Investor Relations		Phone: 973-430-6565
Ø      Greg McLaughlin, Sr. Investor Relations Analyst		Phone: 973-430-6568
Ø      Yaeni Kim, Sr. Investor Relations Analyst		Phone: 973-430-6596
		November 1, 2007

PSEG ANNOUNCES THIRD QUARTER 2007 EARNINGS
$1.97 PER SHARE FROM CONTINUING OPERATIONS

2007 Earnings Guidance Increased to $5.15 - $5.45
Improved Earnings Reflect Strong Performance by PSEG Power and PSE&G

PSEG Power Pursuing New Peaking Capacity
PSEG Energy Holdings Reduces Ownership Interest in Latin America

Public Service Enterprise Group (PSEG) reported today (November 1, 2007) income from continuing operations for the third quarter of 2007 of $500 million or $1.97 per share compared to income from continuing operations of $372 million or $1.47 per share for the comparable period in 2006. Excluding an impairment of $7 million recognized during the third quarter of 2007, operating earnings for the third quarter of 2007 were $507 million or $2.00 per share. During the third quarter of 2006, merger-related expenses of $2 million recognized earlier were reversed resulting in operating earnings for the third quarter of $370 million or $1.47 per share. Including earnings from discontinued operations of $6 million or $0.02 per share, PSEG reported net income for the third quarter of 2007 of $506 million or $1.99 per share. Income from discontinued operations raised net income for the third quarter of 2006 by $2 million, or $0.01 per share to $374 million or $1.48 per share.

Ralph Izzo, chairman, president and chief executive officer of PSEG, said “the results reported by PSEG are a tremendous tribute to the hard work and focus of our employees. Strong operational performance combined with better than anticipated market prices place us on track to exceed our business plan objectives for the year.”

“We are raising our full year 2007 earnings guidance to $5.15-$5.45 per share from $4.90-$5.30 per share.” Izzo went on to say “Based on the normal performance of our current businesses, results are expected to be at the upper end of the range. We continue to forecast 2008 earnings growth expectations of 10%.”

Operating earnings exclude the impact of the sale of certain non-core domestic and international assets and costs stemming from the merger agreement with Exelon Corporation that was terminated in September 2006. The table below provides a reconciliation of PSEG’s net income to operating earnings (a non-GAAP) measure for the third quarter.

PSEG CONSOLIDATED EARNINGS (unaudited)
Third Quarter Comparative Results
2007 and 2006

	($millions)						Diluted Earnings Per Share
	2007			2006			2007			2006
Net Income	$	506		$	374		$	1.99		$	1.48
Discontinued Ops		(6	)		(2	)		(0.02	)		(0.01	)
Income From Continuing Ops	$	500		$	372		$	1.97		$	1.47
Loss from Impairments		7			—			0.03			—
Merger Costs		—			(2	)		—			—
Operating Earnings	$	507		$	370		$	2.00		$	1.47
		Avg. Shares						255	M		252	M

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 financial trends.

“We have been successful on many fronts”, Izzo said. “In addition to operating our assets at top quartile levels, we have reduced our investment exposure in Latin America, and we have identified areas for investment in domestic markets that strengthen our reliability as well as advance our growth.”

Operating earnings guidance by subsidiary for 2007 has been adjusted as follows:

2007 Operating Earnings
($millions)

	Current							Prior
PSEG Power	$	890		-	$	940		$	840		-	$	920
PSE&G		360		-		380			340		-		360
PSEG Energy Holdings		110		-		135			120		-		135
PSEG Parent		(55	)	-		(45	)		(55	)	-		(45	)
Operating Earnings	$	1,305		-	$	1,410		$	1,245		-	$	1,370
Earnings Per Share	$	5.15		-	$	5.45		$	4.90		-	$	5.30

Operating Earnings Review and Outlook by Operating Subsidiary

See Attachment 8 for detail regarding the quarter over quarter reconciliations for each of PSEG’s businesses.

PSEG Power

PSEG Power reported operating earnings of $338 million ($1.33 per share) for the third quarter compared with operating earnings of $205 million ($0.82 per share) reported during the third quarter of 2006.

PSEG Power’s margins benefited from higher pricing in all markets and an increase in output. Higher realized prices and stronger operations added $0.55 per share to earnings. The impact of higher prices was partly offset by recognition of a mark-to-market adjustment during the quarter of $0.03 per share. Approximately half of the increase in earnings was driven by a full quarter of higher prices (including capacity revenues) under the BGS contract effective on June 1. The continued strong performance of the nuclear fleet, coupled with improved performance from the combined cycle units, also allowed PSEG Power to take advantage of strong market dynamics during the quarter. An increase in operating costs of $0.03 per share was offset by an equivalent decrease in taxes during the quarter.

The nuclear fleet maintained its outstanding performance from last year. During the quarter, output for the fleet increased 1.1% over last year’s very strong results. The results for the quarter brought the year to date capacity factor for the fleet to 94%; in line with expectations for a full year 2007 capacity factor of 92%. Supporting these full year expectations, Peach Bottom No. 3 resumed operations 19 days after entering its refueling outage on September 23; and, Hope Creek is scheduled to return to service in early November from a refueling outage which began on October 12.

William Levis, president and chief operating officer of PSEG Power, has indicated that the physical work at Hope Creek associated with the planned 125Mw uprate in the unit’s capacity is expected to be completed during the current refueling outage. However, the Nuclear Regulatory Commission’s review and approval of the work is anticipated by the second quarter of 2008. Although a delay from earlier expectations, the unit should be operating at higher capacity levels for the critical summer period.

PSEG Power also, Levis said, “expects to be in a position to resume independent operation of its nuclear facilities by year-end.” He mentioned that “our organization has been strengthened considerably over the past three years. We are prepared for the resumption of independent operations, which will establish a new milestone in our development.”

PJM released the results of its Reliability Pricing Model (RPM) Base Residual Auction for the 2009/2010 delivery year on October 12, 2007. This represented the third in a series of auctions held throughout 2007 to provide the market with greater clarity around the value of investments in new and existing capacity to meet reliability requirements.

PSEG Power has requested that PJM perform feasibility studies to determine its ability to add a total of 1,000Mw of new gas-fired capacity at some of its existing generating stations located in the Eastern MAAC reliability region. The company intends to bid as much as 300-400Mw of the new capacity into the 2008 RPM auctions. Levis said, “the final decision to proceed with the investment will take into account issues such as capital and interconnection-

costs, available siting and any potential environmental permitting restrictions.” He also added that “the new capacity will complement PSEG Power’s existing PJM fleet, improve the overall efficiency of the fleet, and enhance reliability, in particular for New Jersey customers, where PJM indicates additional energy is needed.”

PSEG Power anticipates fourth quarter results will continue to benefit from higher pricing from recontracting. The improvement in margins, however, will be partially offset by the cost of the fourth quarter refueling outage at Power’s 100% owned Hope Creek nuclear unit as compared to the 2006 fourth quarter refueling outage for Power’s 57% owned Salem Unit No. 1. The year-to-date and anticipated performance supports an increase in the operating earnings guidance for PSEG Power to $890-$940 million from $840-$920 million.

PSE&G

PSE&G reported operating earnings of $106 million ($0.42 per share) for the third quarter compared with operating earnings of $86 million ($0.34 per share) during the third quarter of 2006.

PSE&G’s quarterly results reflect more normal returns associated with the impact of electric and gas rate adjustments implemented in November 2006. Rate relief accounted for $0.06 per share of the year-over-year improvement in earnings. Results for the quarter also benefited from the positive response by customers to PSE&G’s appliance service business which added $0.01 per share.

A decline in financing costs added $0.02 per share to earnings. PSE&G continues to experience growth in demand. On a weather normalized basis, electric sales in the quarter grew by 1.7% over the year ago quarter. However, mild weather in July and August relative to above normal temperatures during the same period a year ago resulted in a decline in earnings for the quarter of $0.01 per share. The year-to-date performance of PSE&G supports an increase in the operating earnings guidance for 2007 to $360-$380 million from $340-$360 million.

PSE&G – for the sixth year in a row – was awarded the Reliability One Award for the Mid-Atlantic region by PA Consulting. Ralph LaRossa, president and chief operating officer for PSE&G, was extremely pleased that the commitment of PSE&G’s employees to “delivering safe, reliable electric service to its customers” continues to be recognized.

PSEG Energy Holdings

Holdings reported operating earnings of $73 million ($0.29 per share) for the third quarter compared with operating earnings of $97 million ($0.38 per share) reported during the third quarter of 2006.

Cool and wet weather experienced in Texas this past summer relative to the abnormally hot and dry conditions a year ago accounted for the majority of the reduction in earnings for the quarter. Global’s Texas generating assets recorded a 6 cents per share decline in the mark to market gain of 12 cents per share booked in the year ago quarter.

Holdings’ Latin American distribution assets continued to perform well benefiting from strong economic growth and a reduction in line losses. These favorable operating conditions added $0.01 per share to earnings in the quarter. Higher interest expense caused by a debt issuance at SAESA, and the repatriation of cash, reduced earnings by $0.03 per share in the quarter. Earnings were also impacted by higher taxes amounting to $0.03 per share. Earnings from Holdings’ subsidiary, Resources, improved by $0.02 per share for the quarter. A stock distribution from the Northwest Airlines bankruptcy settlement added $0.02 per share to earnings for the quarter. A decline in lease income reduced earnings in the quarter by $0.02 per share, but was offset by lower financing costs amounting to $0.02 per share.

“The market has been recognizing the value for high quality Latin American electric distribution and generating companies,” said Matthew McGrath, president of PSEG Global. PSEG Global announced during the third quarter that it had reached agreement to sell its ownership of Electroandes. This sale closed on October 17, 2007 for a purchase price of $390 million, including the assumption of $106 million of debt. PSEG Global has also announced that it is in agreement to sell its 50% ownership in Chilquinta Energia S.A. (Chilquinta), an electric distribution company in Chile, and its 38% ownership of Luz del Sur S.A.A., an electric distribution company in Peru for $685 million. This transaction, which is expected to close by year-end, would provide PSEG Global with after-tax proceeds of $480-$500 million. Global, during the quarter, also recorded an after-tax impairment of $7 million related to its investment in Venezuela.

“The sale of these interests sharply reduces PSEG’s investment in international assets, the cash is available for the company to pursue growth opportunities in our core U.S. markets or to consider share repurchases, once our targeted debt levels have been reached,” said Thomas M. O’Flynn, president, PSEG Energy Holdings and executive vice president and chief financial officer, PSEG.

FORWARD-LOOKING STATEMENT

Readers are cautioned that statements contained in this press release about our and our subsidiaries’ future performance, including 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 reasonable assumptions, we can give no assurance they will be achieved. The results or events predicted in these statements may differ materially from actual results or events. Factors which could cause results or events to differ from current expectations include, among other things: the effects of weather; the performance of generating units and transmission systems; the availability and prices for oil, gas, coal, nuclear fuel, capacity and electricity; changes in the markets for electricity and other energy-related commodities;changes in the number of participants and the risk profile of such participants in the energy marketing and trading business; the effectiveness of our risk management and internal controls systems; the effects of regulatory decisions and changes in law; changes in competition in the markets we serve; the ability to recover regulatory assets and other potential stranded costs; the outcomes of litigation and regulatory proceedings or inquiries; the timing and success of efforts to develop generation, transmission and distribution projects; continued market based rate authority, including any necessary mitigation; environmental regulations and responses to global climate change; ability to realize tax benefits and favorably resolve tax audit claims; conditions of the capital markets and equity markets; advances in technology; changes in accounting standards; changes in interest rates and in financial and foreign currency markets generally; the economic and political climate and growth in the areas in which we conduct our activities; and changes in corporate strategies. For further information, please refer to 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. 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 release. 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.

Attachment 1

PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED
Reconciliation of Operating Earnings to Reported Earnings by Subsidiary
For the Quarters Ended September 30,
(Unaudited)

	2007 EPS									2006 EPS
	Reported Earnings			Continuing Operations			Operating Earnings			Reported Earnings			Continuing Operations			Operating Earnings
PSE&G:
Operations	$	0.42		$	0.42		$	0.42		$	0.34		$	0.34		$	0.34
Total PSE&G		0.42			0.42			0.42			0.34			0.34			0.34
PSEG Power:
Operations		1.33			1.33			1.33			0.82			0.82			0.82
Discontinued Operations		—			—			—			(0.01	)		—			—
Total PSEG Power		1.33			1.33			1.33			0.81			0.82			0.82
PSEG Energy Holdings:
PSEG Global		0.23			0.23			0.23			0.34			0.34			0.34
PSEG Resources		0.06			0.06			0.06			0.04			0.04			0.04
Write Down of Assets		(0.03	)		(0.03	)		—			—			—			—
Discontinued Operations		0.02			—			—			0.02			—			—
Total PSEG Energy Holdings		0.28			0.26			0.29			0.40			0.38			0.38
Enterprise:
Interest & Other Expenses		(0.04	)		(0.04	)		(0.04	)		(0.07	)		(0.07	)		(0.07	)
Total Enterprise		(0.04	)		(0.04	)		(0.04	)		(0.07	)		(0.07	)		(0.07	)
PSEG Earnings Per Share	$	1.99		$	1.97		$	2.00		$	1.48		$	1.47		$	1.47

Attachment 2

PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED
Reconciliation of Operating Earnings to Reported Earnings by Subsidiary
For the Nine Months Ended September 30,
(Unaudited)

	2007 EPS									2006 EPS
	Reported Earnings			Continuing Operations			Operating Earnings			Reported Earnings			Continuing Operations			Operating Earnings
PSE&G:
Operations	$	1.18		$	1.18		$	1.18		$	0.79		$	0.79		$	0.79
Total PSE&G		1.18			1.18			1.18			0.79			0.79			0.79
PSEG Power:
Operations		2.93			2.93			2.93			1.64			1.64			1.64
Discontinued Operations		(0.03	)		—			—			(0.08	)		—			—
Total PSEG Power		2.90			2.93			2.93			1.56			1.64			1.64
PSEG Energy Holdings:
PSEG Global		0.36			0.36			0.36			0.58			0.58			0.58
PSEG Resources		0.18			0.18			0.18			0.19			0.19			0.19
PSEG Holdings		(0.01	)		(0.01	)		(0.01	)		(0.01	)		(0.01	)		(0.01	)
Write Down of Assets		(0.03	)		(0.03	)		—			(0.70	)		(0.70	)		—
Discontinued Operations		(0.04	)		—			—			0.94			—			—
Total PSEG Energy Holdings		0.46			0.50			0.53			1.00			0.06			0.76
Enterprise:
Interest & Other Expenses		(0.17	)		(0.17	)		(0.17	)		(0.20	)		(0.20	)		(0.20	)
Merger and Merger Related Costs		—			—			—			(0.03	)		(0.03	)		—
Total Enterprise		(0.17	)		(0.17	)		(0.17	)		(0.23	)		(0.23	)		(0.20	)
PSEG Earnings Per Share	$	4.37		$	4.44		$	4.47		$	3.12		$	2.26		$	2.99

Attachment 3

PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED
Operating Earnings and Per Share Results by Subsidiary
(Unaudited)

	For the Quarters Ended September 30,						For the Nine Months Ended September 30,
	2007			2006			2007			2006
Earnings Results (in Millions)
PSE&G	$	106		$	86		$	299		$	198
PSEG Power		338			205			744			413
PSEG Energy Holdings
PSEG Global		59			88			90			147
PSEG Resources		15			10			46			49
PSEG Energy Holdings		(1	)		(1	)		(2	)		(3	)
Total PSEG Energy Holdings		73			97			134			193
PSEG		(10	)		(18	)		(43	)		(50	)
Operating Earnings	$	507		$	370		$	1,134		$	754
Write Down of Assets		(7	)		—			(7	)		(178	)
Merger and Merger Related Costs		—			2			—			(7	)
Income from Continuing Operations	$	500		$	372		$	1,127		$	569
Discontinued Operations, Including Gain on Disposal		6			2			(17	)		217
PSEG Net Income	$	506		$	374		$	1,110		$	786
Fully Diluted Average Shares Outstanding (in Millions)		255			252			254			252
Per Share Results (Diluted)
PSE&G	$	0.42		$	0.34		$	1.18		$	0.79
PSEG Power		1.33			0.82			2.93			1.64
PSEG Energy Holdings
PSEG Global		0.23			0.34			0.36			0.58
PSEG Resources		0.06			0.04			0.18			0.19
PSEG Energy Holdings		—			—			(0.01	)		(0.01	)
Total PSEG Energy Holdings		0.29			0.38			0.53			0.76
PSEG		(0.04	)		(0.07	)		(0.17	)		(0.20	)
Operating Earnings	$	2.00		$	1.47		$	4.47		$	2.99
Write Down of Assets		(0.03	)		—			(0.03	)		(0.70	)
Merger and Merger Related Costs		—			—			—			(0.03	)
Income from Continuing Operations	$	1.97		$	1.47		$	4.44		$	2.26
Discontinued Operations, Including Gain on Disposal		0.02			0.01			(0.07	)		0.86
PSEG Net Income	$	1.99		$	1.48		$	4.37		$	3.12

Note 1:

Net Income includes preferred stock dividends relating to PSE&G of $1 million for the quarters ended September 30, 2007 and 2006.

Net Income includes preferred stock dividends relating to PSE&G of $3 million for the nine months ended September 30, 2007 and 2006.

Note 2:

Basic Earnings per Share from Net Income was $1.99 and $1.48 per share for the quarters ended September 30, 2007 and 2006, respectively.

Basic Earnings per Share from Net Income was $4.38 and $3.12 per share for the nine months ended September 30, 2007 and 2006, respectively.

Attachment 4

PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED
Consolidating Statement of Operations
(Unaudited, $ Millions)

	For the Quarter Ended September 30, 2007
	PSEG			OTHER			PSE&G			PSEG POWER			PSEG ENERGY HOLDINGS
				(Note 2)
OPERATING REVENUES	$	3,475		$	(591	)	$	2,106		$	1,580		$	380
OPERATING EXPENSES
Energy Costs		1,674			(591	)		1,341			712			212
Operation and Maintenance		576			(8	)		308			232			44
Write-down of Assets		12			—			—			—			12
Depreciation and Amortization		213			4			161			36			12
Taxes Other Than Income Taxes		31			—			31			—			—
Total Operating Expenses		2,506			(595	)		1,841			980			280
Income from Equity Method Investments		33			—			—			—			33
OPERATING INCOME		1,002			4			265			600			133
Other Income and Deductions (Note 3)		4			(5	)		1			14			(6	)
Interest Expense		(191	)		(19	)		(85	)		(43	)		(44	)
Preferred Securities Dividends		(1	)		—			(1	)		—			—
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES (Note 1)		814			(20	)		180			571			83
Income Tax (Expense) Benefit		(314	)		10			(74	)		(233	)		(17	)
INCOME (LOSS) FROM CONTINUING OPERATIONS		500			(10	)		106			338			66
Income from Discontinued Operations, net of tax		6			—			—			1			5
NET INCOME (LOSS)	$	506		$	(10	)	$	106		$	339		$	71
Income from Discontinued Operations, net of tax		(6	)		—			—			(1	)		(5	)
Write Down of Assets, net of tax		7			—			—			—			7
OPERATING EARNINGS (LOSS)	$	507		$	(10	)	$	106		$	338		$	73

	For the Quarter Ended September 30, 2006
	PSEG			OTHER			PSE&G			PSEG POWER			PSEG ENERGY HOLDINGS
				(Note 2)
OPERATING REVENUES	$	3,297		$	(514	)	$	1,971		$	1,455		$	385
OPERATING EXPENSES
Energy Costs		1,740			(511	)		1,250			809			192
Operation and Maintenance		533			(9	)		278			219			45
Depreciation and Amortization		228			5			174			36			13
Taxes Other Than Income Taxes		32			—			32			—			—
Total Operating Expenses		2,533			(515	)		1,734			1,064			250
Income from Equity Method Investments		30			—			—			—			30
OPERATING INCOME		794			1			237			391			165
Other Income and Deductions (Note 3)		7			(10	)		6			12			(1	)
Interest Expense		(199	)		(25	)		(86	)		(39	)		(49	)
Preferred Securities Dividends		(1	)		—			(1	)		—			—
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES (Note 1)		601			(34	)		156			364			115
Income Tax (Expense) Benefit		(229	)		15			(69	)		(157	)		(18	)
INCOME (LOSS) FROM CONTINUING OPERATIONS		372			(19	)		87			207			97
Income (Loss) from Discontinued Operations, including Gain on Disposal, net of tax		2			—			—			(2	)		4
NET INCOME (LOSS)	$	374		$	(19	)	$	87		$	205		$	101
Income from Discontinued Operations, net of tax		(2	)		—			—			2			(4	)
Merger and Merger-Related Costs, net of tax		(2	)		1			(1	)		(2	)		—
OPERATING EARNINGS (LOSS)	$	370		$	(18	)	$	86		$	205		$	97

Note 1:

Income from Continuing Operations before Income Taxes includes preferred stock dividends relating to PSE&G of $1 million for the quarters ended September 30, 2007 and 2006.

Note 2:

Primarily includes financing activities at the parent and intercompany eliminations.

Note 3:

Other Income and Deductions includes no minority interest for the quarters ended September 30, 2007 and 2006.

Attachment 5

PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED
Consolidating Statement of Operations
(Unaudited, $ Millions)

	For the Nine Months Ended September 30, 2007
	PSEG			OTHER			PSE&G			PSEG POWER			PSEG ENERGY HOLDINGS
				(Note 2)
OPERATING REVENUES	$	9,888		$	(2,448	)	$	6,340		$	5,034		$	962
OPERATING EXPENSES
Energy Costs		5,101			(2,446	)		4,083			2,894			570
Operation and Maintenance		1,774			(21	)		947			711			137
Write-down of Assets		12			—			—			—			12
Depreciation and Amortization		603			10			449			104			40
Taxes Other Than Income Taxes		104			—			104			—			—
Total Operating Expenses		7,594			(2,457	)		5,583			3,709			759
Income from Equity Method Investments		86			—			—			—			86
OPERATING INCOME		2,380			9			757			1,325			289
Other Income and Deductions (Note 3)		60			(16	)		9			57			10
Interest Expense		(560	)		(67	)		(250	)		(119	)		(124	)
Preferred Securities Dividends		(3	)		—			(3	)		—			—
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES (Note 1)		1,877			(74	)		513			1,263			175
Income Tax (Expense) Benefit		(750	)		31			(214	)		(519	)		(48	)
INCOME (LOSS) FROM CONTINUING OPERATIONS		1,127			(43	)		299			744			127
Loss from Discontinued Operations, net of tax		(17	)		—			—			(8	)		(9	)
NET INCOME (LOSS)	$	1,110		$	(43	)	$	299		$	736		$	118
Loss from Discontinued Operations, net of tax		17			—			—			8			9
Write Down of Assets, net of tax		7			—			—			—			7
OPERATING EARNINGS (LOSS)	$	1,134		$	(43	)	$	299		$	744		$	134
	For the Nine Months Ended September 30, 2006
	PSEG			OTHER			PSE&G			PSEG POWER			PSEG ENERGY HOLDINGS
				(Note 2)
OPERATING REVENUES	$	9,286		$	(2,055	)	$	5,754		$	4,551		$	1,036
OPERATING EXPENSES
Energy Costs		5,223			(2,045	)		3,725			2,965			578
Operation and Maintenance		1,682			(22	)		855			713			136
Write-down of Project Investments		263			—			—			—			263
Depreciation and Amortization		629			15			476			103			35
Taxes Other Than Income Taxes		100			—			100			—			—
Total Operating Expenses		7,897			(2,052	)		5,156			3,781			1,012
Income from Equity Method Investments		93			—			—			—			93
OPERATING INCOME (LOSS)		1,482			(3	)		598			770			117
Other Income and Deductions (Note 3)		65			(13	)		16			54			8
Interest Expense		(587	)		(80	)		(254	)		(107	)		(146	)
Preferred Securities Dividends		(3	)		—			(3	)		—			—
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES (Note 1)		957			(96	)		357			717			(21	)
Income Tax (Expense) Benefit		(388	)		40			(160	)		(304	)		36
INCOME (LOSS) FROM CONTINUING OPERATIONS		569			(56	)		197			413			15
Income (Loss) from Discontinued Operations, incl. Gain on Disposal, net of tax		217			—			—			(19	)		236
NET INCOME (LOSS)	$	786		$	(56	)	$	197		$	394		$	251
Discontinued Operations, incl. Gain on Disposal, net of tax		(217	)		—			—			19			(236	)
Loss on Sale of RGE, net of tax		178			—			—			—			178
Merger and Merger-Related Costs, net of tax		7			6			1			—			—
OPERATING EARNINGS (LOSS)	$	754		$	(50	)	$	198		$	413		$	193

Note 1:

Income before Income Taxes includes preferred stock dividends relating to PSE&G of $3 million for the nine months ended September 30, 2007 and 2006.

Note 2:

Primarily includes financing activities at the parent and intercompany eliminations.

Note 3:

Other Income and Deductions includes minority interest of $2 million and ($1) million for the nine months ended September 30, 2007 and 2006, respectively.

Attachment 6

PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED
Capitalization Schedule
(Unaudited, $ Millions)

	September 30, 2007			December 31, 2006
DEBT
Commercial Paper and Loans	$	204		$	381
Long-Term Debt (Note 1)		7,664			7,798
Securitization Debt (Note 1)		1,758			1,879
Project Level, Non-Recourse Debt (Note 1)		920			777
Debt Supporting Trust Preferred Securities (Note 1)		660			660
Total Debt		11,206			11,495
SUBSIDIARY’S PREFERRED SECURITIES		80			80
COMMON STOCKHOLDERS’ EQUITY
Common Stock		4,723			4,661
Treasury Stock		(471	)		(516	)
Retained Earnings		3,186			2,711
Accumulated Other Comprehensive Loss		(127	)		(108	)
Total Common Stockholders’ Equity		7,311			6,748
Total Capitalization	$	18,597		$	18,323

Note 1: Includes amounts due within one year

Note 2:

PSEG’s credit agreements contain covenants that require PSEG’s debt to capitalization ratio not to exceed 70.0% at any time.

This ratio is presented for the benefit of the investors and the related securities to which the covenants apply and is not intended as a financial performance or liquidity measure.

2007

The debt to capitalization ratio calculated under PSEG’s credit agreements as of September 30, 2007 was 48.6%.

The ratio as calculated pursuant to these covenants excludes non-recourse project debt ($920 million), securitization debt ($1.758 billion) and Debt Supporting Trust Preferred Securities ($660 million).
It also includes capital lease obligations ($48 million) and certain other obligations such as guarantees and letters of credit ($87 million), excluding any letters of credit related to collateral posting on energy/commodity contracts. The calculation excludes the equity reduction ($215 million) from the funded status of the pension and benefit plans associated with FAS 158 “Employers’ Accounting for Defined Pension and Other Post-Retirement Plans” which was recorded in 2006 and excludes the Accumulated Other Comprehensive Loss ($201 million) related to the mark-to-market of energy contracts.

2006

The debt to capitalization ratio calculated under PSEG’s credit agreements as of December 31, 2006 was 51.6%.

The ratio as calculated pursuant to these covenants excludes non-recourse project debt ($777 million), securitization debt ($1.879 billion) and Debt Supporting Trust Preferred Securities ($660 million).
It also includes capital lease obligations ($50 million) and certain other obligations such as guarantees and letters of credit ($106 million), excluding any letters of credit related to collateral posting on energy/commodity contracts. The calculation excludes the equity reduction ($226 million) from the funded status of the pension and benefit plans associated with FAS 158 “Employers’ Accounting for Defined Pension and Other Post-Retirement Plans” which was recorded in 2006 and excludes the Accumulated Other Comprehensive Loss ($108 million) related to the mark-to-market of energy contracts.

Attachment 7

PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited, $ Millions)

	For the Nine Months Ended September 30,
	2007			2006
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income	$	1,110		$	786
Adjustments to Reconcile Net Income to Net Cash Flows From Operating Activities		429			647
Net Cash Provided By Operating Activities		1,539			1,433
NET CASH USED IN INVESTING ACTIVITIES		(589	)		(53	)
NET CASH USED IN FINANCING ACTIVITIES		(655	)		(1,385	)
Effect of Exchange Rate Change		1			(2	)
Net Increase (Decrease) in Cash and Cash Equivalents		296			(7	)
Cash and Cash Equivalents at Beginning of Period		125			281
Cash and Cash Equivalents at End of Period	$	421		$	274

Attachment 8

PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED
Quarter-to-Quarter EPS Reconciliation
September 30, 2007 vs. September 30, 2006
(Unaudited)

PSEG 3rd Quarter 2006 Net Income						$	1.48
Income from Discontinued Operations							(0.01	)
PSEG 3rd Quarter 2006 Income from Continuing Operations						$	1.47
PSE&G							B/(W	)
3rd Quarter 2006			$	0.34
Rate Relief - Gas $0.04, Electric $0.02				0.06
Weather - Electric				(0.01	)
Appliance Service				0.01
Interest expense, and Other				0.03
Increase in shares outstanding				(0.01	)
3rd Quarter 2007			$	0.42		$	0.08
PSEG Power
3rd Quarter 2006			$	0.82
Recontracting and Strong Markets	0.55
BGSS & Other	—
Mark-to-Market (MTM)	(0.03	)
Margin				0.52
O&M				(0.03	)
Higher effective tax rate in Q3 2006				0.03
Increase in shares outstanding				(0.01	)
3rd Quarter 2007			$	1.33		$	0.51
PSEG Energy Holdings
3rd Quarter 2006			$	0.38
Texas Generation Facilities - MTM ($0.06), Lower Spark Margin ($0.01)				(0.07	)
Saesa (Chile) operations				0.01
Northwest Airlines settlement distribution				0.02
Lower lease income				(0.02	)
G&A, Interest, and Other				(0.03	)
3rd Quarter 2007			$	0.29		$	(0.09	)
Public Service Enterprise Group
3rd Quarter 2006			$	(0.07	)
Interest				0.03
3rd Quarter 2007			$	(0.04	)	$	0.03
PSEG 3rd Quarter 2007 Operating Earnings						$	2.00
Write Down of Assets							(0.03	)
PSEG 3rd Quarter 2007 Income from Continuing Operations						$	1.97
Income from Discontinued Operations							0.02
PSEG 3rd Quarter 2007 Net Income						$	1.99

Attachment 9

PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED
Year to Date EPS Reconciliation
September 30, 2007 vs. September 30, 2006
(Unaudited)

PSEG Net Income for the Nine Months Ended September 30, 2006						$	3.12
Income from Discontinued Operations							(0.86	)
PSEG Income from Continuing Operations for the Nine Months Ended September 30, 2006						$	2.26
Merger and Merger Related Costs							0.03
Loss on RGE							0.70
PSEG Operating Earnings for the Nine Months Ended September 30, 2006						$	2.99
PSE&G							B/(W	)
Year to Date September 30, 2006			$	0.79
Rate Relief - Gas $0.15, Electric $0.08				0.23
Weather - Gas $0.08				0.08
Volume/Demand				0.05
Appliance Service				0.02
Interest expense and Other				0.02
Increase in shares outstanding				(0.01	)
Year to Date September 30, 2007			$	1.18		$	0.39
PSEG Power
Year to Date September 30, 2006			$	1.64
Recontracting and Strong Markets	1.16
BGSS & Other	0.18
Mark-to-Market (MTM)	(0.04	)
Margin				1.30
O&M				(0.01	)
Depreciation, Interest, and Other				(0.02	)
Higher effective tax rate in Q3 2006				0.03
Increase in shares outstanding				(0.01	)
Year to Date September 30, 2007			$	2.93		$	1.29
PSEG Energy Holdings
Year to Date September 30, 2006			$	0.76
Texas Generation Facilities - MTM ($0.04), Planned Major Maintenance, and lower spark margin ($0.06)				(0.19	)
RGE (Brazil) - Absence of earnings due to 2006 sale				(0.04	)
Bioenergie (Italy) - Loss of production at generation facility				(0.08	)
Saesa (Chile) operations				0.04
Konya-Ilgin (Turkey) litigation settlement				0.02
Gain on sale of investment in Tracy (California) project				0.02
Northwest Airlines settlement distribution				0.02
Lower lease income				(0.04	)
Lower G&A, Interest, and Other				0.02
Year to Date September 30, 2007			$	0.53		$	(0.23	)
Public Service Enterprise Group
Year to Date September 30, 2006			$	(0.20	)
Interest				0.03
Year to Date September 30, 2007			$	(0.17	)	$	0.03
PSEG 3rd Quarter 2007 Operating Earnings						$	4.47
Write Down of Assets							(0.03	)
PSEG Income from Continuing Operations for the Nine Months Ended September 30, 2007						$	4.44
Loss from Discontinued Operations							(0.07	)
PSEG Net Income for the Nine Months Ended September 30, 2007						$	4.37

Attachment 10

PSEG Global L.L.C.Investment Results(Unaudited, $ Millions)

	Total Capital Invested (A) As of September 30,
	2007				2006
Region
United States	$	532	29	%	$	543	27	%
Chile & Peru (B)		1,163	64	%		1,249	63	%
Other - Italy, Venezuela, & India		127	7	%		190	10	%
Total	$	1,822	100	%	$	1,982	100	%

	Contribution by Region For the Nine Months Ended September 30,
	2007					2006
Region
United States	$	88		56	%	$	116	60	%
Chile & Peru (B)		83		52	%		70	37	%
Other - Italy, Venezuela, & India		(13	)	-8	%		6	3	%
Total	$	158		100	%	$	192	100	%

Reconciliation of Regional Contribution to Continuing Operations

	For the Nine Months Ended September 30,
	2007			2006
Total Global Regional Contributions	$	158		$	192
MTM (Loss) Gain on Texas Generation Contracts		16			59
Administrative and general expenses		(20	)		(27	)
Interest Expense		(68	)		(63	)
Other Income		16			2
Earnings/Gain on Assets sold		7			12
Income Tax Expense		(19	)		(28	)
Operating Earnings		90			147
Loss on RGE		—			(178	)
Write Down of Assets		(7	)		—
Continuing Operations	$	83		$	(31	)

(A)	Total Capital Invested includes Global's gross investments less non-recourse debt at the project level.
(B)	Investment in Electroandes of $163 million and $169 million is included in Total Capital Invested for the periods ended September 30, 2007 and 2006 respectively. Earnings from Electroandes are not included in Contribution by Region, as results from this business have been reclassified to discontinued operations.

Attachment 11

PUBLIC SERVICE ELECTRIC & GAS
Sales and Revenues to Customers
(Unaudited)
September 30, 2007

Electric Sales and Revenues

	Three Months Ended		Change vs. 2006	Nine Months Ended		Change vs. 2006	Twelve Months Ended		Change vs. 2006
Sales (millions kwh)
Residential		4,401	-1.1%		10,798	2.9%		13,695	1.3%
Commercial		6,780	1.6%		18,746	2.5%		24,466	1.6%
Industrial		1,455	-9.0%		4,136	-8.7%		5,495	-9.5%
Street Lighting		82	0.1%		261	-0.5%		368	0.2%
Interdepartmental		4	-9.3%		11	-3.0%		14	-2.4%
Total		12,722	-0.7%		33,952	1.1%		44,038	0.0%
Revenue (in millions)
Residential	$	699	10.6%	$	1,555	15.4%	$	1,920	13.2%
Commercial		868	7.5%		2,021	12.8%		2,505	12.3%
Industrial		111	3.7%		267	6.6%		334	4.6%
Street Lighting		18	2.3%		53	6.8%		71	6.6%
Other		104	17.8%		263	5.0%		323	-10.9%
Total	$	1,800	8.9%	$	4,159	12.7%	$	5,153	10.2%

Gas Sold and Transported

	Three Months Ended		Change vs. 2006	Nine Months Ended		Change vs. 2006	Twelve Months Ended		Change vs. 2006
Sales (millions therms)
Residential Sales		100	-5.2%		999	14.0%		1,376	3.7%
Commercial - Firm Sales		41	-5.5%		372	2.9%		512	-2.5%
Commercial - Interr. & Cogen		8	-29.4%		30	-28.1%		43	-67.8%
Industrial - Firm Sales		3	1.1%		30	11.0%		41	0.8%
Industrial - Interr. & Cogen		56	15.7%		107	9.3%		135	-18.7%
Other Operating Revenues		—	-50.1%		1	75.6%		1	57.3%
Total		208	-1.7%		1,539	9.5%		2,108	-3.9%
Gas Transported		329	7.1%		970	9.1%		1,275	6.7%
Revenue (in millions)
Residential Sales	$	92	-12.1%	$	915	4.6%	$	1,271	-0.2%
Commercial - Firm Sales		33	1.6%		335	-8.5%		459	-25.7%
Commercial - Interr. & Cogen		6	-31.5%		26	-33.2%		37	-46.3%
Industrial - Firm Sales		2	-1.6%		26	-3.5%		37	-23.0%
Industrial - Interr. & Cogen		40	1.5%		87	3.2%		106	-33.8%
Other Operating Revenues		34	2.5%		103	0.0%		138	4.2%
Total	$	207	-6.2%	$	1,492	0.2%	$	2,048	-11.0%
Gas Transported		98	0.9%		689	19.8%		953	9.7%

	Three Months Ended		Change vs. 2006	Nine Months Ended		Change vs. 2006	Twelve Months Ended		Change vs. 2006
Weather Data
Degree Days - Actual		29	-29.3%		3,191	16.6%		4,583	3.6%
Degree Days - Normal		34			3,117			4,817
THI Hours - Actual		10,540	-10.0%		14,438	-5.8%		14,694	-7.1%
THI Hours - Normal		10,690			14,560			14,826

Attachment 12

PSEG Power
Generation Measures
(Unaudited)

	GWhr Breakdown						GWhr Breakdown
	Three Months Ended September 30,						Nine Months Ended September 30,
	2007			2006			2007			2006
Nuclear - NJ		5,143			5,126			14,657			14,665
Nuclear - PA		2,265			2,204			7,165			7,101
Total Nuclear		7,408			7,330			21,822			21,766
Fossil - Coal - NJ		1,579			1,548			3,617			4,437
Fossil - Coal - PA		1,566			1,611			4,241			4,513
Fossil - Coal - CT		704			760			2,179			2,225
Total Coal		3,849			3,919			10,037			11,175
Fossil - Oil & Natural Gas - NJ		2,837			2,645			6,051			5,221
Fossil - Oil & Natural Gas - NY		1,127			1,028			2,539			1,823
Fossil - Oil & Natural Gas - CT		95			142			461			222
Total Oil & Natural Gas*		4,059			3,815			9,051			7,266
Fossil - Pumped Storage		(36	)		(43	)		(105	)		(114	)
		15,280			15,021			40,805			40,093

	% Generation by Fuel Type						% Generation by Fuel Type
	Three Months Ended September 30,						Nine Months Ended September 30,
	2007			2006			2007			2006
Nuclear - NJ		34	%		34	%		36	%		36	%
Nuclear - PA		15	%		15	%		18	%		18	%
Total Nuclear		49	%		49	%		54	%		54	%
Fossil - Coal - NJ		10	%		10	%		9	%		11	%
Fossil - Coal - PA		10	%		11	%		10	%		11	%
Fossil - Coal - CT		5	%		5	%		5	%		6	%
Total Coal		25	%		26	%		24	%		28	%
Fossil - Oil & Natural Gas - NJ		19	%		18	%		15	%		13	%
Fossil - Oil & Natural Gas - NY		7	%		7	%		6	%		4	%
Fossil - Oil & Natural Gas - CT		0	%		0	%		1	%		1	%
Total Oil & Natural Gas*		26	%		25	%		22	%		18	%
Fossil - Pumped Storage		0	%		0	%		0	%		0	%
		100	%		100	%		100	%		100	%

* Generation output excludes the Lawrenceburg Indiana station sold in May 2007.

The station generated 391 and 468 GWHrs for the 2006 Quarter and YTD, respectively. It did not run in 2007.

Attachment 13

PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED
Statistical Measures
(Unaudited)

	For the Quarters Ended September 30						For the Nine Months Ended September 30
	2007			2006			2007			2006
Weighted Average Common Shares Outstanding (000’s)
Basic		254,272			251,747			253,603			251,471
Diluted		254,545			252,329			253,983			252,161
Stock Price at End of Period							$	87.99		$	61.19
Dividends Paid per Share of Common Stock	$	0.585		$	0.570		$	1.755		$	1.710
Dividend Payout Ratio*								45.1	%		57.9	%
Dividend Yield								2.6	%		3.7	%
Price/Earnings Ratio*								17.1			15.6
Rate of Return on Average Common Equity*								19.0	%		15.9	%
Book Value per Common Share							$	28.75		$	27.71
Market Price as a Percent of Book Value								306	%		221	%
Total Shareholder Return		0.9	%		-6.7	%		35.4	%		-3.4	%

*Calculation based on Operating Earnings for 12 month period ended

Attachment 14

PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED
Non-Trading Mark-to-Market
(Unaudited)
September 30, 2007

2007 Non-Trading Mark-to-Market
Energy Positions

In Millions After-Tax	Q1			Q2			Q3		Year-to-Date
Power	$	(0.6	)	$	(9.5	)	$	4.4	$	(5.7	)
Holdings		(19.0	)		16.4			13.2		10.6
Total	$	(19.6	)	$	6.9		$	17.6	$	4.9
EPS Impact	Q1			Q2			Q3		Year-to-Date
Power	$	—		$	(0.04	)	$	0.02	$	(0.02	)
Holdings		(0.08	)		0.07			0.05		0.04
Total	$	(0.08	)	$	0.03		$	0.07	$	0.02
2006 Non-Trading Mark-to-Market Energy Positions
In Millions After-Tax	Q1			Q2			Q3		Year-to-Date
Power	$	(11.4	)	$	1.3		$	12.0	$	1.9
Holdings		(4.1	)		13.0			29.3		38.2
Total	$	(15.5	)	$	14.3		$	41.3	$	40.1
EPS Impact		Q1			Q2			Q3		Year-to-Date
Power	$	(0.05	)	$	0.01		$	0.05	$	0.01
Holdings		(0.02	)		0.05			0.12		0.15
Total	$	(0.07	)	$	0.06		$	0.17	$	0.16

Attachment 15

PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED
PSEG Liquidity
(Unaudited, $ Millions)

PSEG Liquidity as of September 30, 2007
Company	Facility	Expiration Date		Total Facility	Primary Purpose		Usage at 9/30/2007		Available Liquidity 9/30/2007
PSEG	5-year Credit Facility	Dec-11	$	1,000	CP Support /Funding/LCs	$	1	$	999
	Uncommitted Bilateral Agreement	N/A		N/A	Funding		—		N/A
PSE&G	5-year Credit Facility	Jun-11		600	CP Support /Funding/LCs		195		405
	Uncommitted Bilateral Agreement	N/A		N/A	Funding		9		N/A
Energy Holdings	5-year Credit Facility*	Jun-10		150	Funding/LCs		18		132
Power	5-Year Credit Facility	Dec-11		1,600	Funding/LCs		141		1,459
	Bilateral Credit Facility	Mar-10		100	Funding/LCs		20		80
	Bilateral Credit Facility	Mar-08		200	Funding/LCs		33		167
		Total	$	3,650				$	3,242
					PSEG Short Term Investment				286
					Total Liquidity Available			$	3,528

* Energy Holdings/Global/Resources joint and several co-borrower facility

EX-99.1

Exhibit 99.1

Public Service Enterprise Group

PSEG Earnings Conference Call

3rd Quarter 2007

November 1, 2007

Disclaimer 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

GAAP Disclaimer

PSEG presents Operating Earnings in addition to its Net Income reported
in accordance with generally accepted accounting principles (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

PSEG
2007 Q3 Review

Ralph Izzo                                                            
Chairman, President and Chief Executive Officer

Q3 2007 EPS Summary

$ 2

--

Merger Related Costs

--

($ 7)

Write Down of Assets

$ 2

$ 6

Discontinued Operations, net of tax

$ 1.47

$ 2.00

EPS from Operating Earnings

$ 374

$ 506

Net Income

$ 372

$ 500

Income from Continuing Operations

$ 370

$ 507

Operating Earnings

Q3 2006

Q3 2007

$ millions (except EPS)

* See page 35 for Items excluded from Net Income to reconcile to Operating Earnings

4

YTD Income Summary

($ 178)

($ 7)

Write Down of Assets

$ 217

($ 17)

Discontinued Operations, net of tax

$ 2.99

$ 4.47

EPS from Operating Earnings

$ 786

$ 1,110

Net Income

$ 569

$ 1,127

Income from Continuing Operations

($ 7)

-

Merger Costs

$ 754

$ 1,134

Operating Earnings

2006

2007

$ millions (except EPS)

Nine months ended September 30,

* See page 35 for Items excluded from Net Income to reconcile to Operating Earnings

5

Earnings – Exceeding Expectations

$0.00

$1.00

$2.00

$3.00

$4.00

$5.00

$6.00

$7.00

2006 Operating

Earnings*

Prior 2007 Guidance

Current 2007

Guidance

2008 Guidance

$4.90 - $5.30

$5.60 - $6.10

$3.71

$5.15 - $5.45

+ 40 – 45%

+ 10%

2007 Guidance
raised by $0.30
in March 2007   

Initial
Guidance:
$4.60 - $5.00

* As reported: Excludes Loss on Sale of RGE of $0.70 per share, Merger costs of $0.03 per share and Loss from Discontinued Operations of $0.05 per share   
** Percentage change in growth based on mid-point of guidance

6

PSEG – Meeting Commitments

2007 earnings exceeding guidance

Focus on core businesses

Investments in Latin America received attractive values

Pursuing expansion of peaking capacity

Transmission investment

Meeting commitment to system reliability with major expansion to
transmission system / new peaking / customer information

Top quartile operating performance

PSE&G Mid-Atlantic ReliabilityOne Award for 6th consecutive year

Expects to be in a position to resume independent operation of nuclear
fleet at year-end

Addressing NJ’s clean energy commitments

Solar initiative

PSE&G to use more energy efficient equipment and vehicles

Meeting our balance sheet goals

S&P outlook revised to stable; commercial paper ratings upgraded

7

PSEG
2007 Q3 Operating Company Review

Tom O’Flynn

Executive Vice President and Chief Financial Officer
President – PSEG Energy Holdings

Q3 Operating Earnings by Subsidiary

$   370

(18)

97

205

$    86

2006

$   507

(10)

73

338

$   106

2007

Operating Earnings

Per Share

$ Millions (except EPS)

  (0.07)

  (0.04)

Enterprise

$   1.47

$   2.00

PSEG

  0.38

  0.29

PSEG Energy Holdings

  0.82

  1.33

PSEG Power

$   0.34

$   0.42

PSE&G

2006

2007

Quarter ended September 30,

* See page 35 for Items excluded from Net Income to reconcile to Operating Earnings

9

YTD Operating Earnings by Subsidiary

$    754

  (50)

193

413

$   198

2006

$  1,134

(43)

134

744

$   299

2007

Operating Earnings

Per Share

$ Millions (except EPS)

  (0.20)

  (0.17)

Enterprise

$   2.99

$   4.47

PSEG

  0.76

  0.53

PSEG Energy Holdings

1.64

  2.93

PSEG Power

$   0.79

$   1.18

PSE&G

2006

2007

Nine months ended September 30,

* See page 35 for Items excluded from Net Income to reconcile to Operating Earnings

10

0.00

1.00

2.00

3.00

PSEG EPS Reconciliation – Q3 2006 versus Q3 2007

Q3 2007
operating
earnings

Q3 2006
operating
earnings

* See page 35 for Items excluded from Net Income to reconcile to Operating Earnings

Rate relief   .06

Weather    (.01)

Appliance Service   
.01

Interest expense,
change in shares
& other  .02

Recontracting/
Strong operations
.55

MTM   (.03)

O&M    (.03)

Other   .02

Global

International .01

G&A  .01

Interest &  taxes (.06)

Texas – MTM &

Operations    (.07)

Interest
.03

Resources

NWA settlement .02

Interest expense  .02

Lease income    (.02)

$1.47

$.08

$0.51

$(.09)

$.03

$2.00

PSE&G  

Power   

Holdings

Enterprise    

11

0.00

1.00

2.00

3.00

4.00

5.00

PSEG EPS Reconciliation – YTD 2006 versus YTD 2007

9 months 2007
operating
earnings

9 months 2006
operating
earnings

* See page 35 for Items excluded from Net Income to reconcile to Operating Earnings

Rate relief  .23

Weather  .08

Volume/
demand  .05

Appliance Service   
.02

Interest expense,
change in shares &
other  .01

Recontracting /
strong operations  
1.16

BGSS & other  .18

Effective tax rate /
change in shares  
.02

MTM   (.04)

Depreciation,
interest &

other   (.02)

O&M  (.01)

Interest   .03

$2.99

$0.39

$1.29

$(0.23)

$0.03

$4.47

PSE&G

Power

Holdings

Enterprise

Global

Settlement & gain  .04

RGE  (.04)

International
Operations - Italy (.08),

SAESA .04

Texas – MTM &
Operations    (.19)

Resources

NWA settlement .02

Lease income    (.04)

Interest, G&A & other  
.02

12

PSEG Power
2007 Q3 Review

PSEG Power – Q3 2007 EPS Summary

$ 125

$ 1,455

$ 1,580

Operating Revenues

$ 0.51

$ 0.82

$ 1.33

EPS from Operating Earnings

$ 134

$ 205

$ 339

Net Income

$ 3

($ 2)

$ 1

Discontinued Operations, net of tax

$ 131

$ 207

$ 338

Income from Continuing Operations

$ 133

$ 205

$ 338

Operating Earnings

Variance

Q3 2006

Q3 2007

               $ millions (except EPS)

* See page 35 for Items excluded from Net Income to reconcile to Operating Earnings

14

.82

.55

(.03)

(.03)

.02

1.33

0.00

0.50

1.00

1.50

Recontracting &
Strong operations
.55

PSEG Power EPS Reconciliation – Q3 2006 versus Q3 2007

Q3 2007
operating
earnings

Q3 2006
operating
earnings

O&M  (.03)

Mark-to-
Market (.03)

Other:

Effective tax rate    .03

Change in shares  (.01)

* See page 35 for Items excluded from Net Income to reconcile to Operating Earnings

15

0%

25%

50%

75%

100%

Summer capacity factor averaging above 98%

2006

2007

Nuclear Fleet Maintains Strong Operating Performance

Salem

Hope Creek

16

PSEG Power – Generation Measures

7.3

7.4

3.9

3.8

3.8

4.0

0

4

8

12

16

2006

2007

21.8

21.8

11.2

10.0

7.1

9.0

0

15

30

45

2006

2007

28.9

29.2

15.0

13.9

8.4

10.8

0

20

40

60

2006

2007

3rd Quarter

Nine months ended 9/30

Trailing Twelve Months
(ended 9/30/07)

Total Nuclear

Total Coal

Total Oil &
Natural Gas*

* Includes figures for Pumped Storage

PSEG Power – Generation (MWh)

15.0

15.2

40.1

40.8

52.3

53.9

17

Prices and Operations Yield Margin Increase of 37% Quarter over Quarter

$0

$20

$40

$60

Q3 2006

Q3 2007

PSEG Power Realized Gross Margin
($/MWh)

$41

$56

$0

$20

$40

$60

9 Months 2006

9 Months 2007

$38

$50

18

RPM Capacity Auction – Transparent Pricing Model

Delivery Year

($MW/Day)

  $97.82

$111.92

$191.32

---

$191.32

$148.80

2009 / 2010

2008 / 2009

2007 / 2008

Zones

$40.80

Rest of Pool

---

MAAC & APS

$197.67

Eastern MAAC

Auctions scheduled in the next year provide transition through the
2011-2012 delivery year.

Results from PJM’s third capacity auction under the Reliability Pricing
Model for the 2009-2010 delivery year provided strong price signals.

May 2008

2011 – 2012

Annual base auction in May of each
subsequent year

January 2008

2010 – 2011

Auction Date

Planning Year

Future auction pricing to be influenced by increase in number of zones,
load growth, new transmission, avoided cost for units, and capacity
available.

19

RPM is Working

RPM has had an influence on the market – forced outage rates
declining, retirements slowing, more DSM bid into market.

PSEG Power is taking steps to add 300 - 400MW ($250 - $350
million) of new gas-fired peaking capacity that could be bid into
PJM’s Reliability Pricing Model (RPM) base residual auctions in
2008.

PSEG Power has requested that PJM perform a feasibility study
to determine the system impact of adding as much as 1,000MW
of new gas-fired capacity at some of its existing generating
stations located in the eastern MAAC reliability region.

The final decision to proceed with construction would take into
account capital and interconnection costs, available siting and
potential for environmental limitations.

20

PSEG Power – Q3 Highlights

Operations:

Generation output increased

Nuclear: 1.1%

Fossil:  2.4%

Expects to be in a position to resume independent operation of Salem
and Hope Creek by year-end

NRC approval of Hope Creek 125 MW uprate expected by spring
2008

Markets:

Benefiting from roll-off of below market contracts

RPM pricing effective June 1, 2007 for 2007-2008 delivery year

Improved pricing for energy in PJM, New York and New England

Financial:

$250 million dividend paid to Enterprise

21

PSE&G
2007 Q3 Review

PSE&G – Q3 2007 EPS Summary

$ 0.08

$ 0.34

$ 0.42

EPS from Operating Earnings

$ 19

$ 87

$ 106

Income from Continuing Operations/
Net Income

$ 20

$ 86

$ 106

Operating Earnings

$ 135

$ 1,971

$ 2,106

Operating Revenues

Variance

Q3 2006

Q3 2007

               $ millions (except EPS)

* See page 35 for Items excluded from Net Income to reconcile to Operating Earnings

23

.34

.06

(.01)

.03

.42

0.00

0.10

0.20

0.30

0.40

0.50

Rate relief:      

Gas    .04   

Electric  .02

PSE&G EPS Reconciliation – Q3 2006 versus Q3 2007

Q3 2007
operating
earnings

Q3 2006
operating
earnings

Weather:

Electric    (.01)

Other

Appliance
service   .01

Interest expense,
change in shares &
other   .02

* See page 35 for Items excluded from Net Income to reconcile to Operating Earnings

24

PSE&G – Q3 Highlights

Operations

Sales growth reflects:

Weather normalized growth in residential and commercial electric customer demand of

3.2% and 3.6%, respectively

Industrial electric demand reflects customer loss

Weather – cooler than normal

Mid-Atlantic ReliabilityOne Award – six years running

O&M growth less than inflation

Regulatory

PSE&G advocates a strong role for gas and electric utilities in meeting the state’s

energy efficiency goals.

Awaiting BPU response to $100 million solar initiative

NJ Energy Master Plan – draft proposal expected before year-end

Financial

Transmission projects represent potential $1 billion investment over 5-8 years

beginning 2008

PSE&G paid $100 million in dividends to PSEG in September

25

PSEG Energy Holdings
2007 Q3 Review

PSEG Energy Holdings – Q3 2007 EPS Summary

($ 7)

--

($ 7)

Write Down of Assets

($ 0.09)

$ 0.38

$ 0.29

EPS from Operating Earnings

($ 30)

$ 101

$ 71

Net Income

$ 1

$ 4

$ 5

Discontinued Operations, net of tax

($ 31)

$ 97

$ 66

Income from Continuing Operations

($ 24)

$ 97

$ 73

Operating Earnings

Variance

Q3 2006

Q3 2007

               $ millions (except EPS)

* See page 35 for Items excluded from Net Income to reconcile to Operating Earnings

27

.29

.02

(.06)

(.05)

.38

0.00

0.15

0.30

0.45

PSEG Energy Holdings EPS Reconciliation – Q3 2006 versus Q3 2007

Q3 2007
operating
earnings

Q3 2006
operating
earnings

Global

* See page 35 for Items excluded from Net Income to reconcile to Operating Earnings

Texas

MTM    (.06)

Operations   (.01)

International

SAESA  .01

G&A  .01

Interest   (.03)

Taxes      (.03)

NWA settlement
.02

Interest
.02

Lease income
(.02)

Resources

28

PSEG Energy Holdings – Q3 Highlights

Operations:

Global

Italian biomass generation plant resumed operations in June after extended
outage; now at full capacity

Latin America distribution businesses performing well

Markets:

Global

Economic growth driving strong demand

Valuations remain strong for international assets

Texas near-term spark spreads lower with mild weather

Financial:

Global

Electroandes sale for $390 million closed on October 17

Reached agreement on sale of Chilquinta and Luz del Sur for $685 million

$7 million after-tax impairment on Turboven recognized in quarter

$158 million payment to Energy Holdings in September 2007 from proceeds
of SAESA debt issuance

29

$41

$175

$104

$129

$50

$13

$(40)

$(35)

$(24)

Improved risk profile by reducing capital invested in non-strategic
assets while increasing returns and sharpening focus on G&A

2004

2006

$2.6B

$2.0B

Chile
&
Peru

US

Other

$900M

$400M

$1.3B

$150M

$500M

$1.4B

35%

15%

50%

7%

68%

25%

$317M**

56%

49%

2004

2006

2007

Projected

$195M**

$205M-$225M**

Composition of Global’s Pre-tax
Contribution by Region*

G&A

Chile &
Peru

US

Other

26%

53%

21%

4%

41%

55%

Global’s Invested Capital

$500M

$1.2 B

12/31/07
Projected

$1.1B***

43%

47%

*   Includes both consolidated and unconsolidated investments after project debt, before allocation of parent debt

** Excludes interest, taxes, G&A and other corporate items to arrive at Global’s Operating Earnings, includes Electroandes,Chilquinta and LDS (33%)

***Assumes the closing of Chilquinta and LDS prior to year end

09/30/07

$1.8B

$470M

$500M

64%

29%

$150M

7%

$100M

10%

-5%

30

PSEG
2007 Q3 Review

Summary of Q3 Fundamental Factors

Operations

Power’s generation output increased 1.7% over last year’s levels

Domestic distribution and transmission assets provide safe and secure
supply

Latin America assets benefit from economic growth

Markets

Weather normalized electric demand growth within expectations

Generating assets see strong, functioning energy and capacity markets

International asset values being recognized

Financials

Dividend payments from operating companies support parent level debt
reductions

PSEG stopped issuing new and treasury shares for shareholder dividend
reinvestment programs.

32

Cash Outlook – Forecast Intact

We remain comfortable with forecasted improvement in

cash

Operating income exceeding expectations

Successful asset sales

Planned rate mechanisms for transmission investments
would provide cash recovery during construction

Excess cash between $1.5 billion and $2.0 billion will be
available through 2011

Excess cash expected to be used to retire debt; once
debt targets are met, cash will be available for investment
and/or share repurchase

33

Increasing 2007 Operating Earnings Guidance

$5.15 - $5.45

$1,305 - $1,410

($55) – ($45)

$110 - $135

$360 - $380

$890 - $940

Current

($55) – ($45)

Parent

$4.90 - $5.30

Earnings per Share

$1,245 - $1,370

Operating Earnings

$120 - $135

PSEG Energy Holdings

$ 340 - $360

PSE&G

$ 840 - $920

PSEG Power

Prior

$ millions (except EPS)

34

Items Excluded from Net Income to Reconcile to Operating Earnings

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.

$ Millions (except EPS)

2007

2006

2007

2006

2007

2006

2007

2006

Merger related Costs:

       PSE&G

-

$           

1

$         

-

$               

(1)

$         

       Power

-

2

-

-

       Enterprise

-

(1)

-

(6)

            Total Merger Related Costs

-

$           

2

$         

-

$               

(7)

$         

-

$      

-

$      

-

$      

(0.03)

$   

Write Down of Assets (Holdings)

(7)

$            

-

$      

(7)

$                 

(178)

$     

(0.03)

$   

-

$      

(0.03)

$   

(0.70)

$   

Discontinued Operations:

      Power - Lawrenceburg

1

$              

(2)

$         

(8)

$                 

(19)

$      

-

$      

(0.01)

$   

(0.03)

$   

(0.08)

$   

      Holdings:

           Elcho and Skawina

-

$           

-

$      

-

$               

227

$      

           Electroandes

5

4

(9)

9

                Total Holdings

5

$              

4

$         

(9)

$                 

236

$      

0.02

$     

0.02

$     

(0.04)

$   

0.94

$     

                Total Discontinued Operations

6

$              

2

$         

(17)

$               

217

$      

0.02

$     

0.01

$     

(0.07)

$   

0.86

$     

Quarter Ended Sept. 30,

Nine Months Ended Sept. 30,

Impact to PSEG EPS

Quarter Ended Sept.  30,

Nine Months Ended Sept. 30,

35