Public Service Enterprise Group

PSEG Earnings Conference Call

4

th

Quarter and Year-end 2009

February 18, 2010

Exhibit 99.1

1

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, law, policies and regulation, including market structures and rules, and reliability standards.

•

Any inability

of

our

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

located

on

a

multi-unit

site

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 commercially reasonable terms and our ability to meet cash needs.

•

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

•

Changes

in

the

cost

of

or

interruption

in

the

supply

of

fuel

and

other

commodities

necessary

to

the

operation

of

our

generating

units.

•

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

•

Adverse performance of our decommissioning and defined benefit plan trust fund investments, 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.

2

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 two slides in this

presentation include 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.

PSEG

2009 Q4 Review

Ralph Izzo

Chairman, President and Chief Executive Officer

4

Q4 2009 Earnings Summary

(3)

-

Discontinued Operations, Net of Tax

$ 0.62

$  0.62

EPS from Operating Earnings*

234

349

Net Income

237

349

Income from Continuing

Operations

(76)

34

Reconciling

Items, Net of Tax

$  313

$  315

Operating

Earnings

2008

2009

$ millions (except EPS)

Quarter ended December 31,         

* See page 32 for Items excluded from Income from Continuing Operations to reconcile to Operating Earnings.

5

Full-year 2009 Earnings Summary

205

-

Discontinued Operations, Net of Tax

$ 3.03

$  3.12

EPS from Operating Earnings*

1,188

1,592

Net Income

983

1,592

Income from Continuing

Operations

(559)

13

Reconciling

Items, Net of Tax

$  1,542

$  1,579

Operating

Earnings

2008

2009

$ millions (except EPS)

For the twelve months ended

December 31,                    

* See page 32 for Items excluded from Income from Continuing Operations to reconcile to Operating Earnings.

6

PSEG –

2009: Balanced

asset

mix

met

market’s

challenges

2009 earnings within guidance

Focused on operational excellence

Record production from nuclear and combined cycle fleet

Reliability standards maintained at PSE&G

Ownership of Texas assets transferred to Power

O&M challenge met by employees

Foundation laid for future

Regulatory approvals in 2009 for $1.4 billion of investments in solar,

infrastructure and energy efficiency

BPU approval for $750 million investment in Susquehanna-Roseland

transmission line

Environmental upgrades at generation units to be completed in 2010

Financial position strengthened

Lease terminations cut related tax liability in half

Long-term debt reduced

Dividend increased for seventh consecutive year

7

2008 Operating Earnings*

2009 Operating Earnings*

2010 Guidance

$3.00 -

$3.25

PSEG –

Introducing

2010 Guidance

$3.03

* See page 32 for Items excluded from Income from Continuing Operations to reconcile to Operating Earnings.                    

$3.12

8

PSEG –

Meeting

Challenges

Achieving earnings targets

Enhancing operational efficiency with a focus on achieving top

quartile performance across the enterprise

Investing in areas with attractive risk-adjusted returns

Sustaining a strong balance sheet

Providing an above average return through our common

dividend

PSEG

2009 Q4 Operating Company Review

Caroline Dorsa

Executive Vice President and Chief Financial Officer

10

Q4 Operating

Earnings by Subsidiary

$    313

(10)

1

76

$   246

2008

$   315

(7)

12

68

$   242

2009

Operating

Earnings

Earnings per Share

(0.02)

(0.01)

Enterprise

$   0.62

$   0.62

Operating

Earnings*

-

0.03

PSEG Energy Holdings

0.15

0.13

PSE&G

$   0.49

$   0.47

PSEG Power

2008

2009

$ millions (except EPS)

Quarter ended December 31,

* See page 32 for Items excluded from Income from Continuing Operations to reconcile to Operating Earnings.

11

Full-year 2009 Operating Earnings by Subsidiary

$ 1,542 

(24)

36

360

$   1,170

2008

$   1,579

10

43

321

$   1,205

2009

Operating

Earnings

Earnings per Share

(0.05)

0.02

Enterprise

3.03

$   3.12

Operating Earnings*

0.07

0.09

PSEG Energy Holdings

0.71

0.63

PSE&G

$   2.30

$   2.38

PSEG Power

2008

2009

$ millions (except EPS)

For the year ended December 31,

* See page 32 for Items excluded from Income from Continuing Operations to reconcile to Operating Earnings.

12

$.62

(.02)

(.02)

.03

.01

$.62

0.00

0.35

0.70

PSEG EPS Reconciliation –

Q4 2009 versus Q4 2008

Q4 2009       

operating

earnings*

Q4 2008       

operating

earnings*

Interest

Lower Pricing

Offset by Lower

Fuel Expense 

(.02)

BGSS and

Wholesale Power

Trading .03

O&M and Other 

(.03)

PSEG Power

Weather (.01)

O&M (.03)

Transmission

and Appliance

Service  .01

Taxes and

Other  .01

PSE&G

PSEG Energy

Holdings

Enterprise

2009 Lease

Sales  .02

O&M, Interest 

and Other  .01

* See page 32 for Items excluded from Income from Continuing Operations to reconcile to Operating Earnings.

13

$3.03

.08

(.08)

.02

.07

$3.12

0.00

0.65

1.30

1.95

2.60

3.25

PSEG EPS Reconciliation –

Full-year 2009 versus Full-

year 2008

2009       

operating

earnings*

2008       

operating

earnings*

Interest  .03

Intercompany

Transaction

Eliminated in

Consolidation  .04

Recontracting

and Lower Fuel

Expense  .04

BGSS and

Wholesale Power

Trading  .01

O&M  .03

Interest  .03

Depreciation and

Other  (.03) 

PSEG Power

Margin –

Gas,

Electric,

Transmission

and Appliance

Service  .04

Weather  (.01)

O&M  (.06)

Depreciation

(.03)

Taxes  (.03)

Interest .01

PSE&G

PSEG Energy

Holdings

Enterprise

2009 Lease Sales 

.13

Lease Income  (.04)

Effective Tax Rate

and Other  (.03)

Intercompany

Transaction

Eliminated in

Consolidation  (.04)

* See page 32 for Items excluded from Income from Continuing Operations to reconcile to Operating Earnings.

PSEG Power

2009 Q4 Review

15

PSEG Power –

Q4 2009 EPS Summary

11

(14)

(3)

Mark-to-Market, Net of Tax

57

(49)

8

NDT Funds Related Activity,              

Net of Tax

($ 256)

$ 2,008

$ 1,752

Operating

Revenues

($ 0.02)

$   0.49

$    0.47

EPS from Operating Earnings*

64

183

247

Net Income

(4)

246

242

Operating

Earnings

Variance

Q4 2008

Q4 2009

$ millions (except EPS)

* See page 32 for Items excluded from Income from Continuing Operations to reconcile to Operating Earnings.

16

$.47

(.03)

.03

(.02)

$.49

0.00

0.25

0.50

0.75

Lower Pricing

Offset by Lower

Fuel Expense

PSEG Power EPS Reconciliation –

Q4 2009 versus Q4 2008

Q4 2009       

operating

earnings*

Q4 2008       

operating

earnings*

BGSS and

Wholesale

Power Trading

* See page 32 for Items excluded from Income from Continuing Operations to reconcile to Operating Earnings.

O&M and

Other

17

29,284

30,283

12,918

8,899

13,090

12,982

7,866

7,644

0

32,500

65,000

2008

2009

PSEG Power –

Generation Measures

7,360

7,531

2,642

2,509

2,516

3,547

1,784

1,688

0

8,750

17,500

2008

2009

Quarter

ended

December

31,

Total Nuclear

Total Coal*

Oil & Natural Gas

–

excluding

Texas

* Includes figures for Pumped Storage

PSEG Power –

Generation (GWh)

14,206

15,371

Twelve

months

ended

December

31,

63,158

59,808

Oil & Natural Gas

-

Texas

18

PSEG Power –

Fuel Costs

240

279

Oil & Gas*

97

92

Coal

24.53

28.44

$ / MWh

15,371

14,206

Total Generation

(GWh)

377

404

Total Fuel Cost

40

33

Nuclear

Total Fossil

($ millions)

337

371

2009

2008

Quarter ended December 31,

PSEG Power –

Fuel Costs

882

1,645

Oil & Gas*

336

423

Coal

22.87

34.79

$ / MWh

59,808

63,158

Total Generation

(GWh)

1,368

2,197

Total Fuel Cost

150

129

Nuclear

Total Fossil

($ millions)

1,218

2,068

2009

2008

Twelve months ended

December 31,

* Includes Texas.

19

PSEG Power –

Gross Margin Performance

$0

$25

$50

$75

2008

2009

$0

$25

$50

$75

2008

2009

$55

$51

Quarter ended

December 31,

Twelve  months ended

December 31,

$55

$60

PJM total gross margin was sustained by lower costs to serve, including

strong performance of our nuclear fleet, which offset lower overall demand

Low gas pricing resulted in gas displacing coal-fired generation

Low spark spreads, partially offset by

increase in generation.

$13

Texas

Regional Performance

$17

$18

$657

Q4 Gross

Margin ($M)

Q4 Performance

Region

Low spark spreads, partially offset by

increase in generation.

New York

Output of Bridgeport Harbor hurt by

low energy prices and high cost of

coal.

New

England

Q4 contribution to gross margin ($M)

increased 3.5% versus year ago;

strong nuclear production, higher

contracted prices offset impact of

customer migration.

PJM

PSEG Power Gross Margin ($/MWh)*

* Excludes Texas. Gross margin for Texaswas $27M and $13M in Q4 2008 and Q4 2009, respectively. For full year, Texas gross margin was

$207M and $113 for 2008 and 2009, respectively.

20

PSEG Power –

Q4 Operating Highlights

Q4 output + 8%; full-year decline of 5%

Q4 nuclear capacity factor at 92.0%; full-year at 93.4%

Combined cycle units operated at record levels

Higher NJ coal dispatch in Q4

Operations

Regulatory and Market

Environment

Financial

BGS auction priced at $95.77/MWh versus $98.88/MWh for expiring contract

Poor economy hurt Q4 earnings ($0.01 per share); customer migration also hurt

Q4 earnings ($0.02 per share)

90 -

95% of 2010 anticipated coal and nuclear output hedged following BGS

auction

Ownership of Texas assets transferred to Power on October 1; financial

statements for 2009 and 2008 reflect transfer

Power’s EBITDA and earnings in line with forecast

PSE&G

2009 Q4 Review

22

PSE&G –

Q4 2009 Earnings Summary

(337)

2,065

1,728

Total Operating

Expenses

(2)

35

33

Taxes Other than Income Taxes

Operating

Expenses

(380)

1,545

1,165

Energy Costs

39

345

384

Operation & Maintenance

6

140

146

Depreciation & Amortization

($ 0.02)

$ 0.15

$ 0.13

EPS from Operating Earnings*

(8)

76

68

Operating

Earnings / Net Income

($ 366)

$ 2,288

$ 1,922

Operating

Revenues

Variance

Q4 2008

Q4 2009

$ millions (except EPS)

* See page 32 for Items excluded from Income from Continuing Operations to reconcile to Operating Earnings.

23

$.13

.01

(.03)

.01

(.01)

$.15

0.00

0.10

0.20

PSE&G EPS Reconciliation –

Q4 2009

versus Q4 2008

Q4 2009      

operating

earnings*

Q4 2008       

operating

earnings*

Weather

Taxes and

Other

* See page 32 for Items excluded from Income from Continuing Operations to reconcile to Operating Earnings.

O&M

Transmission

and Appliance

Service

24

PSE&G –

Q4 Operating Highlights

NJ BPU approved construction of the $750 million Susquehanna-Roseland 500kV

transmission line; in-service date of 2012

Electric and gas rate filing updated to reflect actual results for 2009 test year

Electric increase ($148 million); gas increase ($74 million)

Leadership of NJ BPU changed with election of Chris Christie (R)

as governor

PSE&G issued $250 million of 30-year secured debt at 5.375%

PSE&G’s

2009 operating earnings provided an earned return on equity of 8.3%

Operations

Regulatory and Market

Environment

Financial

Decline in employment having impact on sales growth

Non-pension related O&M remains under control

Agreements with majority of union employees will contain O&M growth in 2010

Focused on maintaining reliability

PSEG Energy Holdings

2009 Q4 Review

26

PSEG Energy Holdings –

Q4 2009 Earnings Summary

3

(3)

--

Discontinued Operations, net of tax

13

(13)

--

Asset Impairments

29

--

29

Net Reversal of Lease Transaction

Reserves

$0.03

--

$ 0.03

EPS from Operating Earnings*

$ 56

($ 15)

$ 41

Net Income (Loss)

$ 11

$ 1

$ 12

Operating

Earnings

Variance

Q4 2008

Q4 2009

$ millions (except EPS)

* See page 32 for Items excluded from Income from Continuing Operations to reconcile to Operating Earnings.

27

.03

.01

.02

$.00

0.00

0.05

PSEG Energy Holdings EPS

Reconciliation

–

Q4

2009

versus

Q4 2008

Q4 2009       

operating

earnings*

Q4 2008      

operating

earnings*

2009 Lease

Sales

* See page 32 for Items excluded from Income from Continuing Operations to reconcile to Operating Earnings.

O&M,

Interest

and Other

28

PSEG Energy Holdings –

Q4 Operating Highlights

Financial

Termination of two leases in Q4 brought total number of leases

terminated to 13, reducing potential tax liability at year-end to $660 million

Reserve for IRS interest reduced in Q4 2009 based on reassessment of

risk following court decision in case with facts similar to ours

Ownership of Texas gas-fired generating assets transferred to Power on

October 1, 2009

PSEG

30

PSEG Financial Highlights

2010 operating earnings guidance of $3.00 -

$3.25 per share

Guidance by operating company will be provided following conclusion of PSE&G

distribution rate case

2009 earnings included $0.13 per share of gains on lease terminations offsetting

$0.08 per share negative impact on earnings from contraction in economic activity

and cooler than normal weather

Financial risk associated with lease investments reduced to approximately

$660 million

Financial position strengthened

Parent level long-term debt eliminated

Debt:capital

ratio at 45% at year-end 2009 versus 49% at end of 2008

31

PSEG Liquidity as of February 12, 2010

Expiration

Total

Primary

Usage at

Available

Company

Facility

Date

Facility

Purpose

2/12/2010

2/12/2010

PSEG

5-year Credit Facility

Dec-12

$1,000

1

CP Support/Funding/LCs

$288

$712

Uncommitted Bilateral

Agreement

N/A

N/A

Funding

0

N/A

Power

5-Year Credit Facility

Dec-12

1,600

2

Funding/LCs

203

1,397

2-Year Credit Facility

Jul-11

350

Funding

0

350

Bilateral Credit Facility

Mar-10

100

Funding/LCs

39

61

PSE&G

5-year Credit Facility

Jun-12

600

3

CP Support/Funding/LCs

0

600

Uncommitted Bilateral

N/A

N/A

Funding

0

N/A

Total

$3,650

$3,120

1

PSEG Facility reduces by $47 million in 12/2011

2

Power Facility reduces by $75 million in 12/2011

3

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

32

Items Excluded from Income from Continuing

Operations to

Reconcile to Operating

Earnings

Please see Page 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

2009

2008

Earnings Impact ($ Millions)

Gain (Loss) on Nuclear Decommissioning Trust (NDT)

Fund Related Activity

8

$          

(49)

$       

9

$          

(71)

$       

Gain (Loss) on Mark-to-Market (MTM)

(3)

(14)

(25)

16

Lease Transaction Reserves

-

-

-

(490)

Net Reversal of Lease Transaction Reserves

29

-

29

-

Asset Impairments

-

(13)

-

(13)

Premium on Bond Redemption

-

-

-

(1)

Total Pro-forma adjustments

34

$        

(76)

$       

13

$        

(559)

$     

Fully Diluted Average Shares Outstanding (in Millions)

507

507

507

508

Per Share Impact (Diluted)

Gain (Loss) on Nuclear Decommissioning Trust (NDT)

Fund Related Activity

0.02

$     

(0.10)

$    

0.02

$     

(0.14)

$    

Gain (Loss) on Mark-to-Market (MTM)

-

(0.03)

(0.05)

0.03

Lease Transaction Reserves

-

-

-

(0.96)

Net Reversal of Lease Transaction Reserves

0.05

-

0.05

-

Asset Impairments

-

(0.03)

-

(0.03)

Premium on Bond Redemption

-

-

-

-

Total Pro-forma adjustments

0.07

$     

(0.16)

$    

0.02

$     

(1.10)

$    

For the Quarters Ended

For the Twelve Months Ended

December 31,

PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED

Reconciling

Items

Excluded

from

Continuing

Operations

to

Compute

Operating

Earnings

(Unaudited)

December 31,