Company Profile

Public Service Enterprise Group (PSEG) is one of the ten largest electric companies in the U.S., with three principal subsidiaries. PSEG Power is a major supplier of electric energy in the constrained Northeast and Mid-Atlantic markets; PSE&G is a regulated public utility company engaged in the transmission and distribution of electricity and gas in New Jersey; PSEG Energy Holdings through its Global subsidiary is focused on operating segments in the electric industry as its Resources subsidiary is focused on financial investments in the energy industry, while managing potential tax risk associated with its lease portfolio.

PSEG is well situated to benefit from a convergence of market forces that require investing in critical infrastructure as policy makers focus on reducing the impact of demand on the environment.

Right Markets...

PSEG Power operates in tightly constrained and growing markets

PSEG Power’s nuclear and coal base load capacity operate in markets with price set by gas

T&D assets provide service in a modest growth market with reasonable regulation

At the Right Time...

Value of capacity being recognized in constrained areas

Moves to control carbon benefit our nuclear based fleet

Brownfield development opportunities at existing sites

T&D set to benefit from new investment

Investment Highlights

Strengthened balance sheet supports capital investments

Return of cash to shareholders through divided and share repurchase program provides discipline to investment process

Earnings growth and yield provide opportunity for double digit shareholder returns of 10 - 13%

NYSE: PEG

2008Investorfactsheet

Financial Highlights

Public Service Enterprise Group (PSEG)80 Park PlazaNewark, NJ 07102

973.430.7000

www.pseg.com

*Does not reflect parent company losses.

See operating earnings to GAAP reconciliation for Investor Fact Sheet under the Investor tab at www.pseg.com

TO ORDER COPIES OF THIS FACT SHEET, CALL 1.800.458.2700

Power LLC

Traditional Transmission & Delivery

Wholesale Energy

Domestic/International Energy

Leveraged Leases

Assets (as of 12/31/07): $28.4BMarket Capitalization (as of 8/15/08): $19.9B

Electric Customers: 2.1MGas Customers: 1.7M

Year Ended December 31, 2007 2006 2005

($millions)Operating Revenues 12,853 11,762 11,849Operating Earnings 1,377 872 869Net Income 1,335 739 661

Per Share (Diluted)EPS from Operating Earnings 2.71 1.73 1.78EPS as Reported 2.62 1.46 1.35Dividend Paid Per Share 1.17 1.14 1.12Book Value per share 14.35 13.35 11.99

Shares Outstanding (millions) 509 505 489

Ratios (%)Debt to Capital 56.3 61.2 64.1Return on Equity 19.0 11.9 15.1Return on Invested Capital 9.7 6.5 6.9

Earnings Contribution (%)*PSEG Power 69 59 51PSE&G 27 30 41PSEG Energy Holdings 8 18 17

Stock Performance - PriceHigh 49.88 36.31 34.24Low 32.16 29.50 24.66Year-End 49.12 33.19 32.49

Operating EarningsPSEG Power 949 515 446PSE&G 376 262 347PSEG Energy Holdings 115 161 196

Right Assets...

Large, diverse low-cost, base-load and load-following generating fleet

Reliable electric and gas distribution and transmission systems

Portfolio of investments in domestic and International electric assets and leases

Public Service Enterprise Group (PSEG)80 Park PlazaNewark, NJ 07102

973.430.7000

www.pseg.com

This document contains forward-looking information. Actual results may differ from those anticipated. Information describing the significant factors that could cause results to differ from those anticipated are described in Public Service Enterprise Group’s filings with the SEC, which are available on our website www.pseg.com

Power’s assets along the dispatch curve position the company to serve full requirement load contracts.

Nuclear Coal Combined Cycle Steam GT Peaking

PSEG Power’s assets are located in attractive markets with expansion capability.Power LLC

SystemInterface

MercerBergenKearnyEssexLindenSewarenEdisonBurlingtonNational Park

New Haven

Peach Bottom

Hope CreekSalem

Conemaugh

Keystone

Bethlehem Energy Center

Albany

Hudson

Bridgeport

Energy Produced 2007

Total GWh: 53,200

Fuel Diversity 2007

Total MW: 13,300

26%

18%47%

8%

1%25%

54%

19%

1%

1%

Nuclear Pumped Storage Coal

Gas Oil

Power LLC

NYSE: PEG

2008Investorfactsheet

PSEG Power LLC is a major electric generation company with 13,300 MW of base-load, intermediate and load following capability operating in attractive markets in the Northeast with operating control of additional 2,000 MW of capacity in Texas..

National ParkDispatch Cost ($/MWh)

Kearny 10-11Mercer 3Sewaren 6

Burlington 8-9-11

Edison 1-2-3Essex 10-11-12

Burlington 12 / Kearny 12Linden 5-8 / Essex 9

Sewaren 1-4Hudson 1

Bridgeport

NewHaven

Bergen 1

BECYardsCreek

Linden 1-2

Bergen 2Mercer 1-2Hudson 2

Keystone

Conemaugh

SalemPeachBottomHope

Creek

Baseload units Load Following units Peaking unitsEnergy Revenue X X XCapacity Revenue X X XAncillary Revenue — X XDuel Fuel — X XNuclear CF 90% to 92% — —Coal CF 85% to 90% 50% to 70% —Combined Cycle CF — 30% to 50% —Peaking CF — — 2% to 10%

PSE&G is a stable electric and gas distribution and transmission company rated top quartile for reliability providing service in a mature service territory in New Jersey.

PSE&G EMP Strategies

Renewables/Emissions Strategies

Solar initiative

Demand-Side Strategies

Advanced Metering Infrastructure

Carbon Abatement

PSE&G Facility and System Efficiency

NYSE: PEG

2008Investorfactsheet

Public Service Enterprise Group (PSEG)80 Park PlazaNewark, NJ 07102

973.430.7000

www.pseg.com

iPower, PSE&G’snew Customer System

Leveraging State of the Art Technology – SAP CCS

Enabling GPS technology to improve dispatching

Creating new opportunities through web-based empowerment

Moving to a platform with full AMI capability

Addressing customer operational and financial measures that are not achieving strategy

T&D Expansion Opportunities

PJM backbone transmission and RTEP projects

Sub-transmission to Transmission reliability upgrades

Distribution System Reinforcements

Recognized as America’s Most Reliable Electric Utility

Gas Distribution Electric Distribution Electric Transmission

2012 Base PlanRate Base = $10.2B

2007 ActualRate Base = $6.4B

34%

54%

12%30%

48%

22%

Transmission Statistics December 31, 2007

Network Circuit Miles 1,429Billing Peak (MW) 10,378*Historical Annual Load Growth 2003-2007 1.3%Projected Annual Load Growth 2008-2012 1.4%

Electric and Gas Distribution Statistics December 31, 2007 Electric Gas

Customers 2.1 million 1.7 millionElectric Sales, Gas Sold and Transported 44,709 GWH 3,502 M ThermsHistorical Annual Load Growth 2003-2007 1.6% (0.2%)Projected Annual Load Growth 2008-2012 1.0% 0.4%

NJ is ranked 2rd nationally in personal income per capita

Mid-Atlantic ReliabilityOne Award winner six years running

Solid regulatory relationships on traditional utility matters

Gas Territory

Electric Territory

Combined Electric & Gas Territories

This document contains forward-looking information. Actual results may differ from those anticipated. Information describing the significant factors that could cause results to differ from those anticipated are described in Public Service Enterprise Group’s filings with the SEC, which are available on our website www.pseg.com

PSEG Dividends – A New CenturyPSEG is continuing its remarkable record of paying common dividends. The year 2008 represents the 101st year PSEG or its predecessor company will be paying dividends to the holders of its common stock. PSEG has paid dividends each year since 1907 – a record only matched by General Electric and Exxon Mobil.

The board of directors of PSEG declared a 10% increase in the quarterly common dividend on January 15, 2008 as it also announced a 2-for-1 stock split. On a post-split basis, the quarterly dividend was raised to 32.25 cents per share from 29.25 cents per share. The new annual common dividend rate is $1.29 per share on a post-split basis.

This is the fifth consecutive year that PSEG has raised its common dividend. This latest increase by the board resets the dividend to a payout of earnings in the middle of a range (40-50%) which provides flexibility for growth and investment given PSEG’s mix of earnings and assets. The largest contributor to PSEG’s earnings is PSEG Power, a com-petitive power generation company, followed by PSE&G, a regulated electric and gas transmission and distribution company, and, to a lesser extent PSEG Energy Holdings. The resetting of the dividend provides PSEG with flexibility for dividend growth and new investment. (All future changes in the common dividend are subject to board approval.)

NYSE: PEG

2008Dividendfactsheet

$1.00

$1.20

$1.40

1999 20012000 2002 2003 2004 2005 2006 2007 2008E

PSEG Annual Dividend Rate*5-year rate of growth: 4.1%10-year rate of growth: 2%

69% 59% 59% 111% 62% 70% 63% 66% 43% 44%**

5.9% 5.7% 4.9% 6.4% 5.6% 4.8% 3.8% 3.5% 2.8% 3.3%**

PayoutRatio

Yield

*Annual dividend rate reflects 2:1 stock split effective on February 4, 2008. **2008 yield calculation based on PEG stock price as of March 30, 2008 (adjusted for stock split); payout ratio based on mid-point of 2007 and 2008 earnings guidance. Payout ratio = percent of income paid to shareholders as common dividends; Yield = annual dividend as a percent of the average stock price of the year.

Public Service Enterprise Group (PSEG)80 Park PlazaNewark, NJ 07102

973.430.7000

www.pseg.com

$1.08$1.08 $1.08 $1.08 $1.08$1.10

$1.12$1.14

$1.17

$1.29