Exhibit 99.1

PSEG Investor News                                                  NYSE:PEG
For further information, contact:
    > Brian Smith, Director, Investor Relations          Phone: 973-430-6564
    > Greg McLaughlin, Sr. Investor Relations Analyst    Phone: 973-430-6568
    > Meg Butler, Sr. Investor Relations Analyst         Phone: 973-430-6565
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                                                             October 11, 2002

            MOODY'S INVESTORS SERVICE REAFFIRMS ALL CREDIT RATINGS
              BUT CHANGES OUTLOOK FOR PSEG AND TWO SUBSIDIARIES



     Public Service  Enterprise  Group (PSEG) today said that Moody's  Investors
Service has  reaffirmed  credit  ratings but changed the outlook  from stable to
negative for PSEG, PSEG Power and PSEG Energy Holdings. The outlook change means
Moody's  will  monitor  the  three  businesses  more  closely  with  respect  to
developments  that may impact its ratings.  Moody's  reaffirmed both the ratings
and stable outlook for Public Service Electric and Gas Company.


     "PSEG's  senior  management  has  had  ongoing   discussions  with  Moody's
regarding our financial,  strategic and operating  plans and  activities,"  said
Thomas O'Flynn, chief financial officer. "We are pleased that Moody's reaffirmed
current  ratings on all our  businesses,  but we are  surprised  by its  outlook
changes.  However,  we  recognize  that  we are  operating  in a very  difficult
business environment."


     "PSEG and its subsidiaries  have sound business  fundamentals  that support
reasonable  earnings and cash flow targets,"  O'Flynn added.  "In September,  we
strengthened  our  balance  sheet  by  successfully   selling  $460  million  of
participating  units,  which  are  preferred  securities  that  are  mandatorily
convertible into common equity."


     O'Flynn also emphasized that PSEG has minimal  long-term debt maturities on
the  horizon  and has strong  liquidity  sources -- both  important  measures of
financial strength.


     He said PSEG will continue  frequent  dialogue with Moody's in an effort to
assure the rating agency that the company's  fundamentals  support the retention
of the current ratings.

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This  release  includes  forward-looking  statements.  Although  Public  Service
Enterprise  Group   Incorporated   and  its  subsidiaries   believe  that  their
expectations  are based on  reasonable  assumptions,  they can give no assurance
that these expectations will be achieved. For further information,  please refer
to their  reports  filed with the  Securities  and  Exchange  Commission.  These
documents address company business, industry issues and other factors that could
cause actual results to differ  materially from those indicated in this release.
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