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) May 4, 2009

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

PSEG POWER LLC

(Exact name of registrant as specified in its charter)

Delaware	001-34232	22-3663480
(State or other jurisdiction of incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)

80 Park Plaza, T-25

Newark, New Jersey 07102-4194

(Address of principal executive offices) (Zip Code)

973-430-7000

(Registrant’s telephone number, including area code)

http://www.pseg.com

PUBLIC SERVICE ELECTRIC AND GAS COMPANY

(Exact name of registrant as specified in its charter)

New Jersey	001-00973	22-1212800
(State or other jurisdiction of incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)

80 Park Plaza, P.O. Box 570

Newark, New Jersey 07101-0570

(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))

         The information contained in Item 2.02. Results of Operations and Financial Condition in this Form 8-K is furnished solely for Public Service Enterprise Group Incorporated (PSEG). The information contained in Item 7.01 Regulation FD Disclosure in this combined Form 8-K is separately furnished, as noted, by PSEG, PSEG Power LLC (Power) and Public Service Electric and Gas Company (PSE&G). Information contained herein relating to any individual company is provided by such company on its own behalf and in connection with its respective Form 8-K. Power and PSE&G each makes representations only as to itself and makes no other representations whatsoever as to any other company.

Item 2.02 Results of Operations and Financial Condition

PSEG

          On May 4, 2009, PSEG announced unaudited financial results for the quarter ended March 31, 2009. A copy of the earnings release dated May 4, 2009 is furnished as Exhibit 99 to this Form 8-K.

Item 7.01 Regulation FD Disclosure

PSEG, Power and PSE&G

          On May 4, 2009, PSEG conducted an earnings call regarding its 2009 first quarter results. A copy of the slideshow presentation used during the earnings call is furnished as Exhibit 99.1 to this Form 8-K.

Item 9.01 Financial Statements and Exhibits

Exhibit 99	Press Release dated May 4, 2009 announcing first quarter 2009 results.
Exhibit 99.1	Slideshow Presentation

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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: May 4, 2009

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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.

PSEG POWER LLC
(Registrant)
By:	/s/ Derek M. DiRisio
	Derek M. DiRisio
	Vice President and Controller
	(Principal Accounting Officer)
Date: May 4, 2009

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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 ELECTRIC AND GAS COMPANY
(Registrant)
By:	/s/ Derek M. DiRisio
	Derek M. DiRisio
	Vice President and Controller
	(Principal Accounting Officer)
Date: May 4, 2009

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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

PSEG ANNOUNCES 2009 FIRST QUARTER RESULTS

$0.88 PER SHARE FROM CONTINUING OPERATIONS

$0.95 PER SHARE OF OPERATING EARNINGS

Performance Reflects Strong Operations in Difficult Markets

Company Reaffirms 2009 Operating Earnings Guidance of $3.00-$3.25 Per Share

(May 4, 2009) – Public Service Enterprise Group (PSEG) reported today First Quarter 2009 Income from Continuing Operations of $444 million or $0.88 per share as compared to $435 million or $0.85 per share for the First Quarter of 2008. Operating Earnings for the first quarter of 2009 were $482 million or $0.95 per share compared to the First Quarter of 2008 Operating Earnings of $438 million or $0.86 per share. Including the impact of net losses on investments in our nuclear decommissioning trust funds (NDT) of $0.04 per share and the recognition of non-trading mark-to-market (MTM) losses of $0.03 per share, PSEG reported Net Income for the first quarter of 2009 of $444 million or $0.88 per share. Including the impact of net losses on investments in NDT funds of $0.02 per share and the recognition of non-trading MTM gains of $0.01 per share and income from discontinued operations of $0.03 per share, PSEG reported Net Income for the first quarter of 2008 of $448 million or $0.88 per share.

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. Operating Earnings exclude the impact of the sale and/or impairment of certain non-core domestic assets and the impact of returns/(losses) associated with NDT and MTM accounting. The table below provides a reconciliation of PSEG’s Net Income to Operating Earnings (a non-GAAP measure) for the first quarter. See Attachment 10 for a complete list of items excluded from Income from Continuing Operations in the determination of Operating Earnings.

PSEG CONSOLIDATED EARNINGS (unaudited)

First Quarter Comparative Results

2009 and 2008

	Income ($millions)						Diluted Earnings Per Share
	2009			2008			2009			2008
Net Income	$	444		$	448		$	0.88		$	0.88
Less: Income from Discontinued Ops		—			13			—			0.03
Income From Continuing Ops	$	444		$	435		$	0.88		$	0.85
Less: Excluded Items		(38	)		(3	)		(0.07	)		(0.01	)
Operating Earnings (Non-GAAP)	$	482		$	438		$	0.95		$	0.86
		Avg. Shares					507M			510M

“PSEG’s results for the first quarter of 2009 demonstrate the strength of operations and the diversity of our asset base in the face of difficult market conditions” said Ralph Izzo, chairman, president and chief executive officer of PSEG.

Izzo indicated that “the market remains challenging, with power prices down and demand softening. But, effective portfolio management and cost control efforts give us the confidence to manage through these difficult times.” He went on to say “we continue to support our operating earnings guidance for 2009 of $3.00-$3.25 per share.”

Operating Earnings Guidance (which remains unchanged) by subsidiary for 2009 is as follows:

2009 Operating Earnings Guidance
($ millions)

PSEG Power	$1,210 - $1,285
PSE&G	320 – 345
PSEG Energy Holdings	0 – 20
PSEG Parent	(10) - 0
Operating Earnings	$1,520 - $1,650
Earnings Per Share	$3.00 - $3.25

Operating Earnings Review and Outlook by Operating Subsidiary

See Attachment 5 for detail regarding the quarter-over-quarter reconciliations for each of PSEG’s businesses.

PSEG Power

PSEG Power reported operating earnings of $359 million ($0.71 per share) for the first quarter of 2009 compared with operating earnings of $279 million ($0.55 per share) for the first quarter of 2008.

PSEG Power’s margins in the first quarter of 2009 benefited from higher contracted pricing and lower fuel costs ($0.18 per share). Higher average prices in the first quarter of 2009 reflect the positive impact of the June 2008 BGS contract on revenue as well as the re-pricing of a below-market wholesale contract which expired at the end of 2008. Cold weather supported demand in January; however, more normal weather during the remainder of the quarter coupled with a contraction in economic activity led to a reduction in overall demand for the quarter. Power was able to take advantage of an increase in output from its nuclear fleet as well as the availability of low-cost gas supply to meet load requirements in the quarter while generation from its coal-fired stations declined quarter-over-quarter. Included in Power’s first quarter margin improvement is income associated with the termination of positions with counterparties which accelerated the recognition of income which would have been realized later in the year. This item represented $0.03 per share of the $0.18 per share improvement in first quarter margin.

The nuclear fleet continued its strong operations with an average capacity factor of 97.8% in the quarter. This compares with an average capacity factor of 94.1% during the year-ago quarter.

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Production from the nuclear fleet also benefited from an uprate in the capacity of Hope Creek and Salem 2 (173MW) completed during the second quarter of 2008.

Power’s earnings saw an increase in margin under the BGSS contract ($0.01 per share). Quarter-over-quarter earnings comparisons were also affected by an anticipated increase in operating and maintenance expense in 2009 associated with planned outage work at the fossil stations ($0.01 per share) and nuclear stations ($0.01 per share). An increase in depreciation and interest expense reduced earnings comparisons by $0.01 per share.

For the year, PSEG Power’s operating earnings forecast reflects the benefit of higher electric power pricing. The operation of competitive energy and capacity markets has allowed Power to hedge 100% of its expected coal and nuclear output in 2009. The improvement in margins during the remainder of the year, however, is not expected to be as strong as that experienced in the first part of the year.

PSE&G

PSE&G reported operating earnings of $123 million ($0.24 per share) for the first quarter compared with operating earnings of $136 million ($0.26 per share) for the first quarter of 2008.

The results for the quarter were affected by several factors. Colder than normal weather increased the demand for gas. Degree Days were 8.5% higher than the level experienced in 2008’s first quarter, and 3.3% greater than normal causing gas sales to increase by 3.1% in the quarter versus last year. The quarter-over-quarter increase in sales was led by a 7.8% increase in gas sales to the residential sector. The weather-related increase in sales contributed $0.03 per share to earnings. Growth in demand continues to be constrained by poor economic conditions. This reduced demand negatively affected non-firm sales to the commercial and industrial sectors and hurt earnings by $0.01 per share in the quarter. Earnings were aided by an increase in transmission revenues effective on October 1, 2008 ($0.01 per share).

The increase in margin was offset by higher pension and operating and maintenance expense ($0.01 per share). Depreciation expense increased with a higher level of capital spending ($0.01 per share). Earnings comparisons were also affected by the absence of tax benefits recognized in the first quarter of 2008 ($0.02 per share).

PSE&G is expected to experience a decline in 2009 operating earnings. Demand is expected to remain weak in response to a contraction in economic growth. Results will also reflect an increase in pension expense as well as higher levels of depreciation expense associated with the start-up of PSE&G’s new customer information system and an increase in financing costs associated with increased capital outlays. PSE&G is preparing to file a combined electric and gas rate case by mid-year. The request will primarily address the company’s increased level of capital spending and pension related costs.

The quarter was marked by the New Jersey BPU’s approval of PSE&G’s proposal to accelerate capital spending as a means of meeting the Governor’s call for programs to stimulate the economy. PSE&G plans to spend $694 million on electric and gas programs over 24 months with approximately $190 million to be spent in 2009. These amounts will be recovered through a new capital adjustment

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charge (approved separate from base rates) designed to provide immediate recovery of a return on the program expenditures plus depreciation of the assets.

PSEG Energy Holdings

PSEG Energy Holdings reported operating earnings of $4 million ($0.01 per share) versus operating earnings of $28 million ($0.06 per share) during the first quarter of 2008.

The decline in operating earnings for the quarter was influenced by several factors. A reduction in gas prices reduced the profitability of the combined cycle gas assets in Texas ($0.01 per share). The Texas generating units performed better than a year ago in what remains a difficult market. The absence of tax benefits recorded in 2008 ($0.02 per share) also hurt earnings. Earnings from Resources were hurt by a reduction in income on the lease portfolio ($0.02 per share) and an increase in taxes ($0.03 per share). These items more than offset the gain recorded on the termination of leases during the quarter ($0.03 per share). The termination of leases during the quarter reduced Resources investment in international leases to $924 million at the end of March 2009 from $1.0 billion at the end of 2008.

PSEG Energy Holdings’ operating income is expected to decline in 2009. The outlook reflects difficult market conditions in Texas for the gas-fired assets with a decline in power prices and spark spreads year over year. The results will also be affected by a full-year decline in the return on Resources leveraged lease portfolio. These items will more than offset the benefits of a reduction in interest expense associated with the redemption, in February 2009, of $280 million of non-recourse debt on the Texas assets.

######

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, but are not limited to:

• Adverse Changes in energy industry, policies and regulation, including market rules that may adversely affect our operating results.

• New energy legislation

• Any inability of our energy transmission and distribution businesses to obtain adequate and timely rate relief and/or regulatory approvals from federal and/or state regulators.

• Changes in federal and/or state environmental regulations that could increase our costs or limit operations of our generating units.

• Changes in nuclear regulation and/or developments in the nuclear power industry generally, that could limit operations of our nuclear generating units.

• Actions or activities at one of our nuclear units that might adversely affect our ability to continue to operate that unit or other units at the same site.

• Any inability to balance our energy obligations, available supply and trading risks.

• Any deterioration in our credit quality.

• Any inability to realize anticipated tax benefits or retain tax credits.

• Increases in the cost of or interruption in the supply of fuel and other commodities necessary to the operation of our generating units.

• Delays or cost escalations in our construction and development activities.

• Adverse investment performance of our decommissioning and defined benefit plan trust funds and changes in discount rates and funding requirements.

• Changes in technology and/or increased customer conservation.

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For further information, please refer to our Annual Report on Form 10-K, including item 1A. Risk Factors, 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.

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Attachment 1

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

	For the Quarters Ended March 31,
	2009			2008
Earnings Results ($ Millions)
PSEG Power	$	359		$	279
PSE&G		123			136
PSEG Energy Holdings		4			28
PSEG		(4	)		(5	)
Operating Earnings	$	482		$	438
Reconciling Items (a)		(38	)		(3	)
Income from Continuing Operations	$	444		$	435
Discontinued Operations		—			13
PSEG Net Income	$	444		$	448
Fully Diluted Average Shares Outstanding (in Millions)		507			510
Per Share Results (Diluted)
PSEG Power	$	0.71		$	0.55
PSE&G		0.24			0.26
PSEG Energy Holdings		0.01			0.06
PSEG		(0.01	)		(0.01	)
Operating Earnings	$	0.95		$	0.86
Reconciling Items (a)		(0.07	)		(0.01	)
Income from Continuing Operations	$	0.88		$	0.85
Discontinued Operations		—			0.03
PSEG Net Income	$	0.88		$	0.88

(a) See attachment 10 for details of items excluded from Continuing Operations to compute Operating Earnings.

Note 1:

Income from Continuing Operations includes preferred stock dividends relating to PSE&G of $1 million for the quarters ended March 31, 2009 and 2008.

Attachment 2

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

	For the Quarter Ended March 31, 2009
	PSEG			OTHER (a)			PSEG POWER			PSE&G			PSEG ENERGY HOLDINGS
OPERATING REVENUES	$	3,921		$	(1,323	)	$	2,374		$	2,735		$	135
OPERATING EXPENSES
Energy Costs		2,068			(1,322	)		1,462			1,859			69
Operation and Maintenance		675			(8	)		258			395			30
Depreciation and Amortization		207			4			47			149			7
Taxes Other Than Income Taxes		44			—			—			44			—
Total Operating Expenses		2,994			(1,326	)		1,767			2,447			106
OPERATING INCOME		927			3			607			288			29
Income from Equity Method Investments		10			—			—			—			10
Other Income and Deductions		(43	)		(6	)		(40	)		—			3
Interest Expense		(145	)		(4	)		(43	)		(79	)		(19	)
Preferred Stock Dividends		(1	)		—			—			(1	)		—
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES (b)		748			(7	)		524			208			23
Income Tax (Expense) Benefit		(304	)		3			(206	)		(85	)		(16	)
NET INCOME (LOSS)	$	444		$	(4	)	$	318		$	123		$	7
Reconciling Items Excluded from Continuing Operations:
Nuclear Decommissioning Trust (NDT) Fund Related Activity, net of tax		23			—			23			—			—
Mark-to-Market (MTM), net of tax		15			—			18			—			(3	)
OPERATING EARNINGS (LOSS)	$	482		$	(4	)	$	359		$	123		$	4
	For the Quarter Ended March 31, 2008
	PSEG			OTHER (a)			PSEG POWER			PSE&G			PSEG ENERGY HOLDINGS
OPERATING REVENUES	$	3,792		$	(1,332	)	$	2,375		$	2,618		$	131
OPERATING EXPENSES
Energy Costs		2,119			(1,331	)		1,589			1,793			68
Operation and Maintenance		627			(7	)		239			360			35
Depreciation and Amortization		192			4			38			143			7
Taxes Other Than Income Taxes		43			—			—			43			—
Total Operating Expenses		2,981			(1,334	)		1,866			2,339			110
OPERATING INCOME		811			2			509			279			21
Income from Equity Method Investments		12			—			—			—			12
Other Income and Deductions		(1	)		(3	)		(5	)		4			3
Interest Expense		(153	)		(7	)		(42	)		(81	)		(23	)
Preferred Stock Dividends		(1	)		—			—			(1	)		—
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES (b)		668			(8	)		462			201			13
Income Tax (Expense) Benefit		(233	)		3			(187	)		(65	)		16
INCOME (LOSS) FROM CONTINUING OPERATIONS		435			(5	)		275			136			29
Discontinued Operations, net of tax		13			—			—			—			13
NET INCOME (LOSS)	$	448		$	(5	)	$	275		$	136		$	42
Discontinued Operations, net of tax		(13	)		—			—			—			(13	)
Reconciling Items Excluded from Continuing Operations:
Nuclear Decommissioning Trust (NDT) Fund Related Activity, net of tax		7			—			7			—			—
Mark-to-Market (MTM), net of tax		(5	)		—			(3	)		—			(2	)
Premium on Bond Redemption, net of tax		1			—			—			—			1
OPERATING EARNINGS (LOSS)	$	438		$	(5	)	$	279		$	136		$	28

(a)	Primarily includes financing activities and donations at the parent and intercompany eliminations.
(b)	Income from Continuing Operations before Income Taxes includes preferred stock dividends relating to PSE&G of $1 million for the quarters ended March 31, 2009 and 2008.

Attachment 3

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

	March 31, 2009			December 31, 2008
DEBT
Commercial Paper and Loans	$	—		$	19
Long-Term Debt (a)		7,380			7,180
Securitization Debt (a)		1,487			1,530
Project Level, Non-Recourse Debt (a)		47			328
Total Debt		8,914			9,057
SUBSIDIARY’S PREFERRED STOCK WITHOUT MANDATORY REDEMPTION		80			80
STOCKHOLDERS’ EQUITY
Common Stock		4,764			4,756
Treasury Stock		(583	)		(581	)
Retained Earnings		4,049			3,773
Accumulated Other Comprehensive Loss		(31	)		(177	)
Total Common Stockholders’ Equity		8,199			7,771
Noncontrolling Interest - Equity Investments		10			11
Total Equity		8,209			7,782
Total Capitalization	$	17,203		$	16,919

(a) Includes amounts due within one year

Note 1:

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 of the related securities to which the covenants apply and is not intended as a financial performance or liquidity measure.

2009

The debt to capitalization ratio calculated under PSEG’s credit agreements as of March 31, 2009 was 47.6%.

The ratio as calculated pursuant to these covenants excludes non-recourse project debt ($47 million) and securitization debt ($1.487 billion). It also includes capital lease obligations ($42 million) and certain other obligations such as guarantees and letters of credit ($171 million), excluding any letters of credit related to collateral posting on energy/commodity contracts. The calculation excludes the equity reduction ($363 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” and excludes the Accumulated Other Comprehensive Income, $300 million, related to the mark-to-market of energy contracts.

2008

The debt to capitalization ratio calculated under PSEG’s credit agreements as of December 31, 2008 was 47.9%.

The ratio as calculated pursuant to these covenants excludes non-recourse project debt ($328 million), securitization debt ($1.530 billion). It also includes capital lease obligations ($43 million) and certain other obligations such as guarantees and letters of credit ($148 million), excluding any letters of credit related to collateral posting on energy/commodity contracts. The calculation excludes the equity reduction ($368 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” and excludes the Accumulated Other Comprehensive Income, $176 million, related to the mark-to-market of energy contracts.

Attachment 4

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

	For the Three Months Ended March 31,
	2009			2008
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income	$	444		$	448
Adjustments to Reconcile Net Income to Net Cash Flows From Operating Activities		945			595
NET CASH PROVIDED BY OPERATING ACTIVITIES		1,389			1,043
NET CASH USED IN INVESTING ACTIVITIES		(165	)		(261	)
NET CASH USED IN FINANCING ACTIVITIES		(313	)		(911	)
Net Increase (Decrease) in Cash and Cash Equivalents		911			(129	)
Cash and Cash Equivalents at Beginning of Period		321			380
Cash and Cash Equivalents at End of Period	$	1,232		$	251

Attachment 5

PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED
Quarter-to-Quarter EPS Reconciliation
March 31, 2009 vs. March 31, 2008
(Unaudited)

PSEG 1st Quarter 2008 Net Income					$	0.88
Discontinued Operations (SAESA and Bioenergie)						0.03
PSEG 1st Quarter 2008 Income from Continuing Operations					$	0.85
Reconciling Items (a)						(0.01	)
PSEG 1st Quarter 2008 Operating Earnings					$	0.86
						B/(W	)
PSEG Power
1st Quarter 2008		$	0.55
Recontracting and Lower Fuel Expense	0.18
BGSS	0.01
Margin			0.19
O&M			(0.02	)
Depreciation, Interest and Other			(0.01	)
1st Quarter 2009		$	0.71		$	0.16
PSE&G
1st Quarter 2008		$	0.26
Weather - Gas			0.03
Transmission Margin			0.01
Gas Margin			(0.01	)
O&M			(0.01	)
Depreciation, Taxes and Other			(0.04	)
1st Quarter 2009		$	0.24		$	(0.02	)
PSEG Energy Holdings
1st Quarter 2008		$	0.06
Texas Generation Facilities			(0.01	)
2009 Asset Sales			0.03
Lease Income			(0.02	)
Effective Tax Rate and Other			(0.05	)
1st Quarter 2009		$	0.01		$	(0.05	)
Public Service Enterprise Group
1st Quarter 2008		$	(0.01	)
Interest			—
1st Quarter 2009		$	(0.01	)	$	—
PSEG 1st Quarter 2009 Operating Earnings					$	0.95
Reconciling Items (a)						(0.07	)
PSEG 1st Quarter 2009 Income from Continuing Operations					$	0.88
Discontinued Operations						—
PSEG 1st Quarter 2009 Net Income					$	0.88

(a) See attachment 10 for details of items excluded from Continuing Operations to compute Operating Earnings.

Attachment 6

PSEG POWER LLC
Generation Measures
(Unaudited)

	GWhr Breakdown
	Quarters Ended March 31,
	2009			2008
Nuclear - NJ		5,488			4,836
Nuclear - PA		2,329			2,429
Total Nuclear		7,817			7,265
Fossil - Coal - NJ		776			1,342
Fossil - Coal - PA		1,434			1,579
Fossil - Coal - CT		493			771
Total Coal		2,703			3,692
Fossil - Oil & Natural Gas - NJ		1,820			2,327
Fossil - Oil & Natural Gas - NY		704			374
Fossil - Oil & Natural Gas - CT		97			75
Total Oil & Natural Gas		2,621			2,776
Fossil - Pumped Storage		(24	)		(33	)
		13,117			13,700

	% Generation by Fuel Type
	Quarters Ended March 31,
	2009			2008
Nuclear - NJ		42	%		35	%
Nuclear - PA		18	%		18	%
Total Nuclear		60	%		53	%
Fossil - Coal - NJ		6	%		10	%
Fossil - Coal - PA		11	%		11	%
Fossil - Coal - CT		3	%		6	%
Total Coal		20	%		27	%
Fossil - Oil & Natural Gas - NJ		14	%		17	%
Fossil - Oil & Natural Gas - NY		5	%		3	%
Fossil - Oil & Natural Gas - CT		1	%		0	%
Total Oil & Natural Gas		20	%		20	%
Fossil - Pumped Storage		0	%		0	%
		100	%		100	%

Attachment 7

PUBLIC SERVICE ELECTRIC & GAS COMPANY
Retail Sales and Revenues
(Unaudited)
March 31, 2009

Electric Sales and Revenues

Sales (millions kwh)	Quarter Ended		Change 2008		vs.
Residential		3,235		1.2	%
Commercial		5,890		-2.3	%
Industrial		1,152		-9.6	%
Street Lighting		103		-0.1	%
Interdepartmental		2		-29.8	%
Total		10,382		-2.1	%
Revenue ($millions)
Residential	$	540		18.4	%
Commercial		615		6.7	%
Industrial		73		-2.6	%
Street Lighting		20		3.3	%
Other Operating Revenues		67		-26.6	%
Total	$	1,315		8.0	%

Weather Data	Quarter Ended		Change 2008		vs.
THI Hours - Actual		0		0.0	%
THI Hours - Normal		15

Attachment 8

PUBLIC SERVICE ELECTRIC & GAS COMPANY
Retail Sales and Revenues
(Unaudited)
March 31, 2009

Gas Sold and Transported

Sales (millions therms)	Quarter Ended		Change 2008		vs.
Residential Sales		704		7.8	%
Commercial - Firm Sales		248		4.7	%
Commercial - Interr. & Cogen		16		-3.2	%
Industrial - Firm Sales		19		-1.2	%
Industrial - Interr. & Cogen		31		-49.5	%
Interdepartmental		—		-24.0	%
Total		1,018		3.1	%
Gas Transported - Firm Sales		201		9.1	%
Gas Transported - Non-Firm		182		-9.1	%
Revenue ($millions)
Residential Sales	$	705		17.8	%
Commercial - Firm Sales		180		-24.6	%
Commercial - Interr. & Cogen		11		-33.5	%
Industrial - Firm Sales		14		-28.5	%
Industrial - Interr. & Cogen		18		-70.6	%
Other Operating Revenues		34		4.1	%
Total	$	962		-0.6	%
Gas Transported		457		6.1	%

Weather Data	Quarter Ended		Change 2008		vs.
Degree Days - Actual		2,627		8.5	%
Degree Days - Normal		2,542

Attachment 9

PUBLIC SERVICE ENTERPRISE GROUP INCORPORATEDStatistical Measures
(Unaudited)

	For the Quarters Ended March 31
	2009			2008
Weighted Average Common Shares Outstanding (000’s)
Basic		505,986			508,490
Diluted		506,548			510,107
Stock Price at End of Period	$	29.47		$	40.19
Dividends Paid per Share of Common Stock	$	0.3325		$	0.3225
Dividend Payout Ratio*		41.7	%		41.8	%
Dividend Yield		4.4	%		3.0	%
Price/Earnings Ratio*		9.5			14.0
Rate of Return on Average Common Equity*		21.1	%		20.7	%
Book Value per Common Share	$	16.20		$	14.45
Market Price as a Percent of Book Value		182	%		278	%
Total Shareholder Return		2.4	%		-17.6	%

*Calculation based on Operating Earnings for 12 month period ended

Attachment 10

PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED
Reconciling Items Excluded from Continuing Operations to Compute Operating Earnings
(Unaudited)

	For the Quarters Ended March 31,
Pro-forma Adjustments, net of tax			2009			2008
Earnings Impact ($ Millions)
Nuclear Decommissioning Trust (NDT) Fund Related Activity		$	(23	)	$	(7	)
Mark-to-Market (MTM)			(15	)		5
Premium on Bond Redemption			—			(1	)
Total Pro-forma to Operating Earnings		$	(38	)	$	(3	)
Fully Diluted Average Shares Outstanding (in Millions)			507			510
Per Share Impact (Diluted)
Nuclear Decommissioning Trust (NDT) Fund Related Activity		$	(0.04	)	$	(0.02	)
Mark-to-Market (MTM)			(0.03	)		0.01
Total Pro-forma to Operating Earnings		$	(0.07	)	$	(0.01	)

EX-99.1

EXHIBIT 99.1

Public Service Enterprise Group

PSEG Earnings Conference Call

1st Quarter 2009

May 4, 2009

Forward-Looking Statement

Readers are cautioned that statements contained in this presentation 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, but are not
limited to:

Adverse changes in energy industry, policies and regulation, including market structures and rules.

New energy legislation.

Any inability of our energy transmission and distribution businesses to obtain adequate and timely rate relief and regulatory approvals from
federal and state regulators.

Changes in federal and state environmental regulations that could increase our costs or limit operations of our generating units.

Changes in nuclear regulation and/or developments in the nuclear power industry generally, that could limit operations of our nuclear generating
units.

Actions or activities at one of our nuclear units that might adversely affect our ability to continue to operate that unit or other units at the same
site.

Any inability to balance our energy obligations, available supply and trading risks.

Any deterioration in our credit quality.

Availability of capital and credit at reasonable pricing terms and our ability to meet cash needs.

Any inability to realize anticipated tax benefits or retain tax credits.

Increases in the cost of or interruption in the supply of fuel and other commodities necessary to the operation of our generating units.

Delays or cost escalations in our construction and development activities.

Adverse investment performance of our decommissioning and defined benefit plan trust funds, and changes in discount rates and funding
requirements.

Changes in technology and increased customer conservation.

For further information, please refer to our Annual Report on Form 10-K, including Item 1A. Risk Factors, 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 presentation. 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 internal 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 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 gains or losses associated
with Nuclear Decommissioning Trust (NDT) and Mark-to-Market (MTM)
accounting, the impact of the sale of certain non-core domestic and
international assets and material impairments and lease-transaction-
related charges. 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 Income from
Continuing Operations to reconcile to Operating Earnings, with a
reference to that slide included on each of the slides where the non-GAAP
information appears.  

2

PSEG
2009 Q1 Review

Ralph Izzo

Chairman, President and Chief Executive Officer

Q1 2009 Earnings Summary

      13

        -

Discontinued Operations, Net of Tax

$ 0.86

$  0.95

EPS from Operating Earnings*

    448

    444

Net Income

    435

    444

Income from Continuing Operations

       (3)

     (38)

Reconciling Items, Net of Tax

$  438

$  482

Operating Earnings

2008

2009

               $ millions (except EPS)

Quarter ended March 31,

* See page 29 for Items excluded from Income from Continuing Operations to reconcile to Operating Earnings.

4

PSEG – Q1 2009: Answering Challenges of Difficult Market

Q1 2009 results support full-year expectations.

Demonstrate strength of asset base.

Markets remain challenging.

Weather normalized sales have declined; commodity prices lower.

Local economic initiative received regulatory support.

$694 million accelerated capital infrastructure program approved.

Obama Administration focused on energy policy and renewables.

Cap-and-trade under consideration.

Focused on controlling expenses.

Financial position remains strong.

Common dividend increased 3.1% in Q1 2009 to $1.33 per share
indicated annual rate.

5

2007 Operating Earnings*

2008 Operating Earnings*

2009 Guidance

$2.68

$3.00 - $3.25

PSEG – 2009: Meeting the Challenge

$3.03

* See page 29 for Items excluded from Income from Continuing Operations to reconcile to Operating Earnings.

6

PSEG
2009 Q1 Operating Company Review

Caroline Dorsa

Executive Vice President and Chief Financial Officer

Q1 Operating Earnings by Subsidiary

$    438

(5)

28

136

$   279

2008

$   482

(4)

4

123

$   359

2009

Operating Earnings

Earnings per Share

(0.01)

(0.01)

Enterprise

$   0.86

$   0.95

Operating Earnings*

0.06

0.01

PSEG Energy Holdings

0.26

0.24

PSE&G

$   0.55

$   0.71

PSEG Power

2008

2009

$ millions (except EPS)

Quarter ended March 31,

* See page 29 for Items excluded from Income from Continuing Operations to reconcile to Operating Earnings.

8

$.86

.16

(.02)

(.05)

.95

0.00

0.60

1.20

PSEG EPS Reconciliation – Q1 2009 versus Q1 2008

Q1 2009
operating
earnings*

Q1 2008
operating
earnings*

Recontracting
and Lower Fuel
Expense .18

BGSS  .01

O&M  (.02)

Depreciation,
Interest and Other
(.01)

PSEG Power

Weather-Gas  
.03

Transmission
Margin .01

Gas Margin
(.01)

O&M (.01)

Depreciation,
Taxes and
Other (.04)

PSE&G

PSEG Energy
Holdings

Texas Generating
Facilities (.01)

2009 Asset Sales  
.03

Lease Income  (.02)

Effective Tax Rate
and Other (.05)

* See page 29 for Items excluded from Income from Continuing Operations to reconcile to Operating Earnings.

9

PSEG Power

2009 Q1 Review

PSEG Power – Q1 2009 EPS Summary

(21)

3

(18)

Mark-to-Market, Net of Tax

(16)

(7)

(23)

NDT Funds Related Activity,               
Net of Tax

($ 1)

$ 2,375

$ 2,374

Operating Revenues

$  0.16

$   0.55

$    0.71

EPS from Operating Earnings*

43

275

      318

Income from Continuing Operations/
Net Income

80

279

      359

Operating Earnings

Variance

Q1 2008

Q1 2009

               $ millions (except EPS)

* See page 29 for Items excluded from Income from Continuing Operations to reconcile to Operating Earnings.

11

$.71

(.01)

(.02)

.01

.18

$.55

0.00

0.25

0.50

0.75

Recontracting
and Lower Fuel
Expense

PSEG Power EPS Reconciliation – Q1 2009 versus Q1 2008

Q1 2009
operating
earnings*

Q1 2008
operating
earnings*

BGSS

O&M

* See page 29 for Items excluded from Income from Continuing Operations to reconcile to Operating Earnings.

Depreciation,
Interest and
Other

12

PSEG Power – Generation Measures

7,265

7,817

3,659

2,679

2,776

2,621

0

5,000

10,000

15,000

2008

2009

Quarter ended March 31,

Total Nuclear

Total Coal*

Total Oil &
Natural Gas

* Includes figures for Pumped Storage

PSEG Power – Generation (GWh)

13,700

13,117

Generation declined 4.3%.

Nuclear fleet capacity factors:

NJ fleet operated at 99.3%
in Q1 2009 vs 91.0% in Q1
2008.

Nuclear fleet capacity
factor of 97.8% in Q1 2009
vs 94.1% in Q1 2008.

Nuclear generation
increase of 7.6% supported
by uprates in capacity at
Hope Creek and Salem.

Gas units displaced coal in Q1
2009 with decline in gas prices
and higher than expected
demand in January.

13

PSEG Power – Fuel Costs

174

242

Oil & Gas

94

115

Coal

$23.20

$28.30

$ / MWh

13,117

13,700

Total Generation
(GWhr)

$304

$388

Total Fuel Cost

36

31

Nuclear

Total Fossil

($ millions)

$268

$357

2009

2008

                                                            
Quarter ended March 31,

PSEG Power – Fuel Costs

Fuel costs reflect:

Higher cost coal contract

Decline in gas prices

Increase in nuclear generation

14

$0

$25

$50

$75

2008

2009

Market forces aided margin improvement in Q1 2009…

PSEG Power Gross Margin ($/MWh)

$51

$63

Quarter ended March 31,

… but, we don’t forecast similar improvement for full year.

15

PSEG Power – Q1 Operating Highlights

Q1 total output decline is a reflection of market conditions.

Weighted average combined cycle capacity factor of 30.4% vs 36.8% in Q1 2008.

Weighted average coal capacity factor of 53.0% vs 72.2% in Q1 2008.

Nuclear fleet capacity factor of 97.8%.

Hope Creek scheduled to exit refueling in early May.

Operations

Regulatory and MarketEnvironment

Financial

Power markets affected by contraction in economic growth, excess supply of gas
and volatility.

FERC supported new CONE pricing for PJM’s RPM capacity auction; auction for
2012-2013 capacity begins May 4.

$325 million dividend paid to Enterprise in Q1.

16

PSE&G
2009 Q1 Review

PSE&G – Q1 2009 Earnings Summary

108

2,339

2,447

Total Operating Expenses

1

43

44

Taxes Other than Income Taxes

Operating Expenses

66

1,793

1,859

Energy Costs

35

360

395

Operation & Maintenance

6

143

149

Depreciation & Amortization

($ 0.02)

  $ 0.26

$ 0.24

EPS from Operating Earnings*

(13)

136

123

Net Income

(13)

136

123

Operating Earnings

$ 117

$ 2,618

$ 2,735

Operating Revenues

Variance

Q1 2008

Q1 2009

               $ millions (except EPS)

* See page 29 for Items excluded from Income from Continuing Operations to reconcile to Operating Earnings.

18

$.26

.03

(.05)

$.24

0.00

0.20

0.40

PSE&G EPS Reconciliation – Q1 2009versus Q1 2008

Q1 2009
operating
earnings*

Q1 2008
operating
earnings*

Weather – Gas .03

Other Margin:     
Transmission  .01   
Gas   (.01)

O&M  (.01)

Depreciation,
Taxes and Other  
(.04)

* See page 29 for Items excluded from Income from Continuing Operations to reconcile to Operating Earnings.

19

PSE&G’s Margins are affected by Residential Sales and C&I
Demand and Customer charges.

Residential

Service

Charge, 5%

C&I Non-

Volume

Customer

and Demand

Charges, 45%

Street

Lighting, 10%

Residential

Sales, 40%

C&I Non-

Volume

Customer

and Demand

Charges, 15%

Residential

Sales, 60%

Residential

Service

Charge, 15%

C&I Sales,

10%

Electric

Gas

2009 Forecast

Total electric sales expected to decline by 1.5% – 2.0% vs. 2008.

Residential electric sales are expected to be flat versus last year.

Gas sales, on a weather normalized basis, are forecasted to
decline ~ 0.5%.

20

PSE&G – Q1 Operating Highlights

NJ BPU approved $694M of accelerated spending under capital economic
stimulus program.

PSE&G awaiting BPU approval of proposals on energy efficiency ($198M) and
Solar 4 All ($773M); requested approval of Solar Loan II to help finance
installation of 40MW.

2009 capital expenditures increased by $190M for economic stimulus program.

Some deterioration in aging of accounts receivable.

Operations

Regulatory and MarketEnvironment

Financial

Impact on sales from contraction in economic growth offset by colder than normal
weather.

O&M costs under control; pension expense $16M higher vs. Q1 2008.

21

PSEG Energy Holdings
2009 Q1 Review

PSEG Energy Holdings – Q1 2009 Earnings Summary

(13)

13

--

Discontinued Operations, Net of Tax

1

(1)

--

Premium on Bond Redemption, Net of Tax

1

2

3

Mark-to-Market, Net of Tax

($0.05)

$ 0.06

$ 0.01

EPS from Operating Earnings*

($ 35)

$ 42

$ 7

Net Income

   ($ 24)

$ 28

   $ 4

Operating Earnings

Variance

Q1 2008

Q1 2009

               $ millions (except EPS)

* See page 29 for Items excluded from Income from Continuing Operations to reconcile to Operating Earnings.

23

.01

(.05)

(.02)

.03

(.01)

$.06

0.00

0.05

0.10

PSEG Energy Holdings EPS Reconciliation – Q1 2009 versus
Q1 2008

      Q1 2009        
operating
earnings*

    Q1 2008      
operating
earnings*

Texas Generation
Facilities

2009 Asset
Sales

Lease
Income

* See page 29 for Items excluded from Income from Continuing Operations to reconcile to Operating Earnings.

Effective Tax Rate
and Other

24

PSEG Energy Holdings – Q1 Operating Highlights

Administration focus on development of renewables, including wind, could favor
investment in storage technology (CAES).

Reached agreement on termination of several international leases reducing
portfolio by $76M.

Redeemed $280M of non-recourse debt at Texas facilities; repurchased $10M of
Energy Holdings senior notes.

Reached agreement to sell interest in PPN (India).

Operations

Regulatory and MarketEnvironment

Financial

Texas – 2,000 MW gas-fired combined cycle capacity

$11.45

1,596

Q1 2009

$18.18

1,416

Q1 2008

Gross Margin ($/MWh)

Production (GWh)

Decline in margin a reflection of decline in gas prices.

25

PSEG

2009 Operating Earnings Guidance

$ 3.03

$ 1,542

($ 24)

$ 99

$ 360

$ 1,107

2008A*

$ 3.00 – $ 3.25

$ 1,520 – $ 1,650

($ 10) – $ 0

$ 0 – $ 20

$ 320 – $ 345

$ 1,210 – $ 1,285

2009E

Enterprise

Earnings per Share

Operating Earnings

PSEG Energy Holdings

PSE&G

PSEG Power

$ millions (except EPS)

* See page 29 for Items excluded from Income from Continuing Operations to reconcile to Operating Earnings.

27

PSEG Liquidity as of April 30, 2009

Expiration

Total

Primary

Usage at

Available

Company

Facility

Date

Facility

Purpose

4/30/2009

4/30/2009

PSEG

5-year Credit Facility

Dec-12

$1,000

1

CP Support/Funding/LCs

$13

$987

Bilateral Credit Facility

Jun-09

$100

CP Support/Funding

$0

$100

Uncommitted Bilateral Agreement

N/A

N/A

Funding

0

N/A

Power

5-Year Credit Facility

Dec-12

1,600

3

Funding/LCs

237

1,363

Bilateral Credit Facility

Jun-09

100

Funding/LCs

0

100

Bilateral Credit Facility

Sep-09

150

Funding/LCs

0

150

Bilateral Credit Facility

Sep-09

50

Funding

0

50

Bilateral Credit Facility

Mar-10

100

Funding/LCs

25

75

PSE&G

5-year Credit Facility

Jun-12

600

2

CP Support/Funding/LCs

122

478

Uncommitted Bilateral Agreement

N/A

N/A

Funding

2

N/A

Energy

5-year Credit Facility

Jun-10

136

Funding/LCs

3

133

Holdings

TOTAL

$3,836

$3,436

1

PSEG Facility reduces by $47 million in 12/2011

2

PSE&G Facility reduces by $28 million in 12/2011

3

Power Facility reduces by $75 million in 12/2011

28

Items Excluded from Income from Continuing Operations 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.

Pro-forma Adjustments, net of tax

2009

2008

2008

2007

Earnings Impact (in Millions)

Impairment of PPN

-

$               

-

$               

(9)

$            

(2)

$            

Impairment of Turboven

-

-

(4)

(7)

Loss on Sale of Chilquinta and Luz del Sur

-

-

-

(23)

Nuclear Decommissioning Trust (NDT) Fund Related Activity

(23)

(7)

(71)

12

Mark-to-Market (MTM)

(15)

5

16

10

Premium on Bond Redemption

-

(1)

(1)

(28)

Lease Reserves

-

-

(490)

-

Total Pro-forma to Operating Earnings

(38)

$           

(3)

$            

(559)

$         

(38)

$           

Fully Diluted Average Shares Outstanding (in Millions)

507

510

508

509

Per Share Impact (Diluted)

Impairment of PPN

-

$               

-

$               

(0.02)

$        

-

$               

Impairment of Turboven

-

-

(0.01)

(0.01)

Loss on Sale of Chilquinta and Luz del Sur

-

-

-

(0.05)

Nuclear Decommissioning Trust (NDT) Fund Related Activity

(0.04)

(0.02)

(0.14)

0.02

Mark-to-Market (MTM)

(0.03)

0.01

0.03

0.02

Premium on Bond Redemption

-

-

-

(0.06)

Lease Reserves

-

-

(0.96)

-

Total Pro-forma to Operating Earnings

(0.07)

$        

(0.01)

$        

(1.10)

$        

(0.08)

$        

December 31,

For the Quarters Ended

March 31,

PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED

Reconciling Items Excluded from Continuing Operations to Compute Operating Earnings

(Unaudited)

For the Twelve Months Ended

29